SLM 19663 Bba Human Resources Management

HUMAN RESOURCE
MANAGEMENT
V SEMESTER
BBA
CORE COURSE: BBA5 B07
2019 Admission onwards
UNIVERSITY OF CALICUT
School of Distance Education
Calicut University- P.O,
Malappuram - 673635, Kerala.
19663
UNIVERSITY OF CALICUT
Study Material
V SEMESTER
BBA
CORE COURSE: BBA5 B07
HUMAN RESOURCE MANAGEMENT

Prepared by:
Dr.P Siddeeque Melmuri
Assistant Professor,
School of Distance Education, University of Calicut
Scruitinized by:
Dr. Dinesh P K,
Assistant Professor,
Research & PG Department of Commerce,
Govt. Arts & Science College, Calicut.
DISCLAIMER
“The author shall be solely responsible for the
content and views expressed in this book”
Human Resource Management 2

Module Contents Page
Introduction to Human
I 7 – 36
Resource Management
2 Procurement of HR 37 – 68
3 Training and Development 69 – 80
Performance Appraisal, and

4 81 – 100
Compensation
Overview of HRM Trends and
5 101 - 142
Challenges

Syllabus
Core Course
BBA5B07 HUMAN RESOURCE MANAGEMENT
Time: 4 Hours per week Credits: 4
Internal 20: External 80
Objectives:
To give a conceptual understanding of human resource practices
in organizations.
Learning Outcome: On completing the course students will be
able to:
1. Understand and develop insights and knowledge base of
various concepts and Functions of Human Resource Management
2. Learn the latest trends inHuman Resource Management.
Module I: Introduction to Human Resource Management:
Meaning, definition, importance, scope and objectives of HRM;
Evolution and development of HRM; Approaches to HRM-
Personal management Vs Human Resource Management; HRM
and competitive advantage. HR department- organisational
composition, role, functions 12 Hours
Module II : Procurement of HR: Meaning and Importance of
HR planning ; Job analysis---process of job analysis, job
description, job specification, methods of job analysis;
Conventional Vs strategic planning; Recruitment – concept,
sources ; Selection – concept , Difference between recruitment
and selection, process- test, interview, placement, induction and
socialization; retention. 12 Hours

Module III : Training and Development: Concepts;

importance; Training and development methods –
Apprenticeship, understudy, job rotation, vestibule training, case
study, role playing, sensitivity training, In-basket, management
games, conferences and seminars, coaching and mentoring;
Management Development Programs; Training process
outsourcing. 14 Hours
Module IV : Performance Appraisal, and Compensation:
Performance appraisal -need and Importance, objectives, process
and methods. Compensation- Objective, Principles,
classification, factors Influencing Employee Compensation.
12 Hours
Module V : Overview of HRM Trends and Challenges:
Strategic HRM, Electronic HRM, Green HRM, Human Resource
Information System, HR Audit, workforce diversity, downsizing,
work life balance, Labour localisation. 14 Hours
Reference Books:
1. Dessler, Human Resource Management, Prentice Hall of
India.
2. D.A.DeCenzo and S. P. Robbins,S.L Verhulust, Human
Resource Management, Wiley.
3. GrayDesler,BijuVarkkey, Human Resource
Management,Pearson Education.
4. K.Aswathappa,Human Resource Management Text and
Cases, McGraw Hill Education.
5. VSP Rao, Human Resource Management, Excel Books.


MODULE I
INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
Human Resource management is the most happening
function as of now. This is so because people offer competitive
advantage to a firm and managing people is the domain of HRM.
An organization enjoys competitive advantage when it is the only
one which can offer a product at a price and at quality while its
competitors cannot do so.
Fast changes are taking placein the business environment.
An organization must have the ability to absorb these changes at
a fast rate than in the past, not simply to prove its competency
alone but to justify its existence in the dynamic business world as
well. All organizations, whether large or small must ensure
themselves that they have the competent people capable of
accepting this challenge.
Human resource management is a relatively modern
concept, which involves arrange of ideas and practices in
managing people. Human resource is the most valuable resource
in any organization because it can function only through people.
Human Resource Management has come to be recognized
as an inherent part of management, which is concerned with the
human resources of an organization. Its objective is the
maintenance of better human relations in the organization by the
development, application and evaluation of policies, procedures
and programs relating to human resources to optimize their
contribution towards the realization of organizational objectives.
.

In other words, HRM is concerned with getting better

results with the collaboration of people. It is an integral but
distinctive part of management, concerned with people at work
and their relationships within the enterprise. HRM helps in
attaining maximum individual development, desirable working
relationship between employees and employers, employees and
employees, and effective modeling of human resources as
contrasted with physical resources. It is the recruitment, selection,
development, utilization, compensation and motivation of human
resources by the organization.
CONCEPT OF HUMAN RESOURCE MANAGEMENT

What exactly is human resource management? Many
people find HRM to be an unclear and strange concept. ‘This is
not simply because of having variety of meanings to this term.
This confusion is mainly due to the different interpretations found
in articles and books about human resource management.
HRM is the philosophy of people management based on
the belief that human resources are extremely important for
sustained business success. An organization acquires competitive
advantage by using its people effectively and utilizing their
expertise to meet clearly defined objectives. HRM is aimed at
recruiting capable, flexible and committed people. Managing and
rewarding their performance and developing key competencies.
Meaning and Definition

Human Resource Management is the process of
recruitment, selection of employee, providing proper orientation
and induction, providing proper training and the developing
skills, assessment of employee (performance of appraisal),
providing proper compensation and benefits, motivating,
maintaining proper relations with labor and with trade unions,
maintaining employee’s safety, welfare and health by complying

with labor laws of concern state or country.
Many great scholars had defined human resource
management in different ways and with different words, but the
core meaning of the human resource management deals with how
to manage people or employees in the organization. .
Edwin Flippo defines- HRM as “planning, organizing,
directing, controlling of procurement, development,
compensation, integration, maintenance and separation of human
resources to the end that individual, organizational and social
objectives are achieved.”
The National Institute of Personal Management
(NIPM) of India has defined human resources – personal
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 organization of the men and women who make up
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”.
FEATURES OF HRM
The features of human resource management can be
highlighted as follows:
1. It is an inherent part of management: Human resource
management is inherent in the process of management. This
function is performed by all the managers throughout the
organisation rather that by the personnel department only. If a
manager is to get the best of his people, he must undertake the
basic responsibility of selecting people who will work under him.

2. It is a pervasive function: Human Resource Management is a

pervasive function of management. It is performed by all
managers at various levels in the organisation. It is not a
responsibility that a manager can leave completely to someone
else. However, he may secure advice and help in managing
people from experts who have special competence in personnel
management and industrial relations.
3. It is basic to all functional areas: Human Resource
Management permeates all the functional area of management
such as production management, financial management, and
marketing management. That is every manager from top to
bottom, working in any department has to perform the personnel
functions.
4. It is people centered: Human Resource Management is people
centered and is relevant in all types of organisations. It is
concerned with all categories of personnel from top to the bottom
of the organisation. The broad classification of personnel in an
industrial enterprise may be as follows: (i) Blue-collar workers
(i.e. those working on machines and engaged in loading,
unloading etc.) and white-collar workers (i.e. clerical employees),
(ii) Managerial and nonmanagerial personnel, (iii) Professionals
(such as Chartered Accountant, Company Secretary, Lawyer,
etc.) and non-professional personnel.
5. It involves Personnel Activities or Functions: Human
Resource Management involves several functions concerned with
the management of people at work. It includes manpower
planning, employment, placement, training, appraisal and
compensation of employees. For the performance of these
activities efficiently, a separate department known as Personnel
Department is created in most of the organisations.

6. It is a continuous process: Human Resource Management is

not a “one shot” function. It must be performed continuously if
the organisational objectives are to be achieved smoothly.
7. It is based on Human Relations: Human Resource
Management is concerned with the motivation of human
resources in the organisation. The human beings can‘t be dealt
with like physical factors of production. Every person has
different needs, perceptions and expectations.
The managers should give due attention to these factors.
They require human relations skills to deal with the people at
work. Human relations skills are also required in training
performance appraisal, transfer and promotion of subordinates
Evolution of HRM
The evolution of the concept of Human Resource Management
can be analysed as follows:
Period before industrial revolution – The society was primarily
an agriculture economy with limited production. Number of
specialized crafts was limited and was usually carried out within
a village or community with apprentices assisting the master
craftsmen. Communication channel were limited.
Period of industrial revolution (1750 to 1850) – Industrial
revolution marked the conversion of economy from agriculture
based upon industry. Modernization and increased means of
communication gave way to industrial setup. A department was
set up to look into workers wages, welfare and other related
issues. This led to emergence of personnel management with the
major task as

- Worker’s wages and salaries

- Worker’s record maintenance
- Worker’s housing facilities and health care
An important event in industrial revolution was growth of
Labour Union (1790) the works working in the industries or
factories were subjected to long working hours and very less
wages. With growing unrest, workers across the world started
protest and this led to the establishment of Labour unions. To deal
with labour issues at one end and management at the other
Personnel Management department had to be capable of politics
and diplomacy, thus the industrial relation department emerged.
Post Industrial revolution – The term Human resource
Management saw a major evolution after 1850. Various studies
were released and many experiments were conducted during this
period which gave HRM altogether a new meaning and
importance.
A brief overview of major theories release during this period is
presented below
Frederick W. Taylor gave principles of scientific management
(1857 to 1911) led to the evolution of scientific human resource
management approach which was involved in - Worker’s training
- Maintaining wage uniformity
- Focus on attaining better productivity.
Hawthorne studies, conducted by Elton Mayo & Fritz
Roethlisberger (1927 to 1940). – Observations and findings of
Hawthorne experiment shifted the focus of Human resource from

increasing worker’s productivity to increasing worker’s

efficiency through greater work satisfaction.
Douglas McGregor Theory X and Theory Y (1960) and
Abraham Maslow’s Hierarchy of needs (1954) – These studies
and observations led to the transition from the administrative and
passive Personnel Management approach to a more dynamic
Human Resource Management approach which considered
workers as a valuable resource.
As a result of these principles and studies, Human
resource management became increasingly line management
function, linked to core business operations. Some of the major
activities of HR department are listed as-
1. Recruitment and selection of skilled workforce.
2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.
APPROACHES TO HRM
John Storey (1989) distinguished two approaches that describe
the concept of Human Resources Management.
Hard HRM
The hard version of HRM traces its roots from the concept of
scientific management postulated by Fredrick W Taylor in the
early 20th century.
Basically scientific management advocated for the adoption of a
set of management techniques that would increase Organizational
efficiency and productivity.
The management techniques mainly involved the

scientific measurement of work through time and method studies,
standardization of work tools, functional foremanship,
differential pay-rate systems, cost containment and instructional
cards for workers etc.
The humane side of scientific management was that it
embraced the concept of the worker as a “rational economic man
whose individualistic nature required motivation to gain the best
out of him.
NB: The Hard HRM version resembles in many ways the
characteristics of scientific management mentioned above.
The fundamental point to note is that Hard HRM like
scientific management seeks to achieve organizational efficiency
through the organization’s human resources.
This is achieved through utilitarian instrumentalism,
which entails that organizations must use their human resources
to achieve its desired goals.
Thus Hard HRM is quantitative in nature as it focuses on
the strategic needs of the organization in terms of the amount of
human resources it requires and which must be treated with
rationality like any other factor of production.
Hard HRM is purely market driven and it adopts a
business-oriented philosophy as it aims to manage people in a
way that adds value and one which brings competitive advantage.
The hard version of HRM is more common in a capitalist set up
where people are regarded as human capital, which can bring
profit after investing in it.

Also the worker is regarded as a commodity, which can be

exchanged.
Soft HRM
The soft version of HRM traces its roots to the human
relations school of thought led by Elton Mayo in the Hawthorne
studies from 1927-1932 at the Western Electric Company in
Chicago.
Human Relations emphasized the human dimension of
workers through the demonstration of the importance of group
pressures, social relations, and attitudes towards supervision as
determinants of productivity.
The organization is a social system as well as a techno -
economic system with emphasis on the importance of both the
formal and the informal group.
Similarly soft HRM is premised on the need to treat
employees as ‘whole men’, valued assets, and the most important
source of competitive advantage as opposed to treating them as
objects.
It emphasizes more on effective communication, training
and development, motivation, culture, values and involvement as
sources of employee commitment, which is crucial for gaining
competitive advantage.
The thrust of soft HRM is thus based on mutuality of
purpose, which renders it unitarist in nature.
NB: Soft HRM can be said to embrace developmental humanism
as opposed to utilitarian instrumentalism in hard HRM

H R Management Vs. Personnel Management
HRM Personnel Management

HRM is the latest Personnel management
development in the evaluation precedes HRM
of management of man
It gives more importance to Performance is evaluated

the abilities of employees within the framework of rules.
rather than evaluating them as
per rules.
It works on the basis of It works on the basis of

integrated initiative piecemeal initiative
Process of decision making is Process of decision making is

fast slow
It supports performance It supports fixed remuneration

related remuneration
It uses latest techniques of It uses outdated techniques of

training and development training and Development
It practices division of work It practices only division of

along with team work work
It favours all round It favours contractual

development of employees employment based on written
agreement

Scope of Human Resource Management

1. Personnel Aspect
Human Resource Planning – It is the process by which the
organization identifies the number of jobs vacant.
Job Analysis and Job Design – Job analysis is the systematic
process for gathering, documenting, and analyzing data about the
work required for a job. Job analysis is the procedure for
identifying those duties or behavior that defines a job.
Recruitment and Selection – Recruitment is the process of
preparing advertisements on the basis of information collected
from job analysis and publishing it in newspaper. Selection is the
process of choosing the best candidate among the candidates
applied for the job.
Orientation and Induction – Making the selected candidate
informed about the organization’s background, culture, values,
and work ethics.
Training and Development – Training is provided to both new
and existing employees to improve their performance.
Performance Appraisal – Performance check is done of every
employee by Human Resource Management. Promotions,
transfers, incentives, and salary increments are decided on the
basis of employee performance appraisal.
Compensation Planning and Remuneration – It is the job of
Human Resource Management to plan compensation and
remunerate.

Motivation – Human Resource Management tries to keep

employees motivated so that employees put their maximum
efforts in work.
2. Welfare Aspect – Human Resource Management have to
follow certain health and safety regulations for the benefit of
employees. It deals with working conditions, and amenities like -
canteens, crèches, rest and lunch rooms, housing, transport,
medical assistance, education, health and safety, recreation
facilities, etc.
3. Industrial Relation Aspect – HRM works to maintain co-
ordinal relation with the union members to avoid strikes or
lockouts to ensure smooth functioning of the organisation. It also
covers - joint consultation, collective bargaining, grievance and
disciplinary procedures, and dispute settlement.
Importance of Human Resource Management
Human Resource Management is related with effective utilization
of human resources. The importance of HRM can be discussed
as:
1. Importance concerned with individual organization
Human Resource Management can help an organization to
achieve to its objective more efficiently and effectively in the
followingways:
(a) Procurement of required talents through recruitment,
selection, placement, inducting, training, compensation and
promotion policies.
(b) Secures co-operation of all employee of the organization for
achieving goals.

(c) Proper utilization of human resources for the success of the

enterprise.
(d) Ensure a future team of efficient ancompetent workers
required for the organization.
2. Professional Importance
Professional competency among employees can be achieved
through the following ways.
(a) Human resource management provides maximum
opportunities to employees for their personnel development.
(b) Providing healthy relationship among employees
(c) Proper allocation of work among employees.
(d) Providing training facilities for the individual development of
employees.
3. Social Importance
HRM is important in social perspective also. It includes the
following aspects:
(a) Human resource management enhances the dignity of labour.
(b) Provides suitable job to suitable person and it will help to
satisfy the psychological and social satisfaction of employees.
(c) Helps to provide reasonable compensation to workers, which
leads them to have a good standard of living.
(d) Helps to maintain a balance between jobs and job seekers in
terms of numbers, qualification, aptitude etc.

(e) Takes health and safety measures which ensures physical and
mental health of the employees.
4. National Importance
Effective management of human resources will speed up the
economic growth of nation. This in turn leads to better standard
of living and more job opportunities.
Human Resource Management: Objectives
• To help the organization reach its goals.
• To ensure effective utilization and maximum development of
human resources.
• To ensure respect for human beings.Toidentify and satisfy the
needs of individuals.
• To ensure reconciliation of individual goals with those of the
organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-
motivated employees.
• To increase to the fullest the employee’s job satisfaction and
self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its
multidimensional aspect.
• To enhance employee’s capabilities to perform the present job.
• To equip the employees with precision and clarity in

transactions of business.
• To inculcate the sense of team spirit, team work and inter-team
collaboration.
Human Resource Activities
In order to achieve the above objectives, Human Resource
Management undertakes the following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to
another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for
organizational relationship.
9. Collective bargaining, contract negotiation and grievance
handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.
12. Developing and maintaining motivation for workers by
providing incentives.
13. Reviewing and auditing manpower management in the

organization
14. Potential Appraisal Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and Quality of
Working Life
Functions
Human Resource Management Functions:
Managerial, Operative and Advisory Function
Some of the major functions of human resource management are
as follows:
1. Managerial Functions
2. Operative Functions
3. Advisory Functions.
Human Resource or Personnel Department is established in most
of the organizations, under the charge of an executive known as
Human Resource/Personnel Manager. This department plays an
important role in the efficient management of human resources.
The personnel department gives assistance and provides service
to all other departments on personnel matters. Though personnel
or human resource manager is a staff officer in relation to other
departments of the enterprise, he has a line authority to get orders
executed within his department.

(i) Managerial,
(ii) Operative and
(iii) Advisory functions.
1. Managerial Functions:
The Human Resource Manager is a part of the organisational
management. So he must perform the basic managerial functions
of planning, organising, directing and controlling in relation to his
department.
There functions are briefly discussed below:
1. Planning:
To get things done through the subordinates, a manager must plan
ahead. Planning is necessary to determine the goals of the
organisation and lay down policies and procedures to reach the
goals. For a human resource manager, planning means the
determination of personnel programs that will contribute to the
goals of the enterprise, i.e., anticipating vacancies, planning job
requirements, job descriptions and determination of the sources
of recruitment.
The process of personnel planning involves three essential steps.
Firstly, a supply and demand forecast for each job category is
made. This step requires knowledge to both labour market
conditions and the strategic posture and goals of the organisation.
Secondly, net shortage and excess of personnel by job category
are projected for a specific time horizon.
Finally, plans are developed to eliminate the forecast shortages
and excess of particular categories of human resources.
2. Organizing:
Once the human resource manager has established objectives and
developed plans and programs to reach them, he must design and
develop organisation structure to carry out the various operations.
The organization structure basically includes the following:
(i) Grouping of personnel activity logically into functions or
positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and
responsibilities involved;
(iv) Co-ordination of activities of different individuals.
3. Directing:
The plans are to be pure into effect by people. But how smoothly
the plans are implemented depends on the motivation of people.
The direction function of the personnel manager involves
encouraging people to work willingly and effectively for the goals
of the enterprise.
In other words, the direction function is meant to guide and
motivate the people to accomplish the personnel programs. The
personnel manager can motivate the employees in an organisation
through career planning, salary administration, ensuring
employee morale, developing cordial relationships and provision
of safety requirements and welfare of employees.
The motivational function poses a great challenge for any
manager. The personnel manager must have the ability to identify
the needs of employees and the means and methods of satisfy
those needs.
Motivation is a continuous process as new needs and expectations

emerge among employees when old ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities in
accordance with the plans, which in turn have been formulated on
the basis of the objectives of the organisation. Thus, controlling
completes the cycle and leads back to planning. It involves the
observation and comparison of results with the standards and
correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the control
the performance of the personnel department in terms of various
operative functions. It involves performance appraisal, critical
examination of personnel records and statistics and personnel
audit.
2. Operative Functions:
The operative functions are those tasks or duties which are
specifically entrusted to the human resource or personnel
department. These are concerned with employment,
development, compensation, integration and maintenance of
personnel of the organisation.
The operative functions of human resource or personnel
department are discussed below:
1. Employment:
The first operative function of the human resource of personnel
department is the employment of proper kind and number of
persons necessary to achieve the objectives of the organisation.
This involves recruitment, selection, placement, etc. of the
personnel.
Before these processes are performed, it is better to determine the

manpower requirements both in terms of number and quality of
the personnel. Recruitment and selection cover the sources of
supply of labour and the devices designed to select the right type
of people for various jobs. Induction and placement of personnel
for their better performance also come under the employment or
procurement function.
2. Development:
Training and development of personnel is a follow up of the
employment function. It is a duty of management to train each
employee property to develop technical skills for the job for
which he has been employed and also to develop him for the
higher jobs in the organisation. Proper development of personnel
is necessary to increase their skills in doing their jobs and in
satisfying their growth need.
For this purpose, the personnel departments will device
appropriate training programs. There are several on- the-job and
off-the-job methods available for training purposes. A good
training program should include a mixture of both types of
methods. It is important to point out that personnel department
arranges for training not only of new employees but also of old
employees to update their knowledge in the use of latest
techniques.
3. Compensation:
This function is concerned with the determination of adequate and
equitable remuneration of the employees in the organisation of
their contribution to the organisational goals. The personnel can
be compensated both in terms of monetary as well as non-
monetary rewards.

Factors which must be borne in mind while fixing the

remuneration of personnel are their basic needs, requirements of
jobs, legal provisions regarding minimum wages, capacity of the
organisation to pay, wage level afforded by competitors etc. For
fixing the wage levels, the personnel department can make use of
certain techniques like job evaluation and performance appraisal.
4. Maintenance (Working Conditions and Welfare):

Merely appointment and training of people is not sufficient; they
must be provided with good working, conditions so that they may
like their work and workplace and maintain their efficiency.
Working conditions certainly influence the motivation and
morale of the employees.
These include measures taken for health, safety, and comfort of
the workforce. The personnel department also provides for
various welfare services which relate to the physical and social
wellbeing of the employees. These may include provision of
cafeteria, rest rooms, counseling, group insurance, education for
children of employees, recreational facilities, etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their
needs. In many of the cases, it is found that they do not contribute
towards the organisational goals as much as they can. This
happens because employees are not adequately motivated. The
human resource manager helps the various departmental
managers to design a system of financial and non-financial
rewards to motivate the employees.

6. Personnel Records:
The human resource or personnel department maintains the
records of the employees working in the enterprise. It keeps full
records of their training, achievements, transfer, promotion, etc.
It also preserves many other records relating to the behaviour of
personnel like absenteeism and labour turnover and the personnel
programs and policies of the organisation.
7. Industrial Relations:
These days, the responsibility of maintaining good industrial
relations is mainly discharged by the human resource manager.
The human resource manager can help in collective bargaining,
joint consultation and settlement of disputes, if the need arises.
This is because of the fact that he is in possession of full
information relating to personnel and has the working knowledge
of various labour enactments.
The human resource manager can do a great deal in maintaining
industrial peace in the organisation as he is deeply associated with
various committees on discipline, labour welfare, safety,
grievance, etc. He helps in laying down the grievance procedure
to redress the grievances of the employees. He also gives
authentic information to the trade union leaders and conveys their
views on various labour problems to the top management.
8. Separation:
Since the first function of human resource management is to
procure the employees, it is logical that the last should be the
separation and return of that person to society. Most people do
not die on the job. The organisation is responsible for meeting
certain requirements of due process in separation, as well as
assuring that the returned person is in as good shape as possible.

The personnel manager has to ensure the release of retirement

benefits to the retiring personnel in time.
3. Advisory Functions:
Human resource manager has specialized education and training
in managing human resources. He is an expert in his area and so
can give advice on matters relating to human resources of the
organization.
He offers his advice to:
1. Advised to Top Management:
Personnel manager advises the top management in formulation
and evaluation of personnel programs, policies and procedures.
He also gives advice for achieving and maintaining good human
relations and high employee morale.
2. Advised to Departmental Heads:
Personnel manager offers advice to the heads of various
departments on matters such as manpower planning, job analysis
and design, recruitment and selection, placement, training,
performance appraisal, etc.
Personnel Management vs. Human Resource Management
Both the terms refer to the one and the same function of the
management and that is managing the people at work. However,
Human Resource Management is mainly focused on best utilizing
the man power by understanding their strength and weaknesses
and engaging them in different occupations so that their
productivity can be increased. Therefore, training and
development and employee engagements are part of it. Personnel
Management, on the other hand, is mainly concerned with

maintaining good employee- employer relationship and activities

connected with it. Therefore, Personnel Management mainly
works around Industrial/ Employee/ Labour Relations and
activities connected with grievance handling, negotiations,
enforcement of labour statute, looking after welfare of employees
and so on.
Personnel Management is thus basically an administrative record-
keeping function, at the operational level. Personnel Management
attempts to maintain fair terms and conditions of employment,
while at the same time, efficiently managing personnel activities
for individual departments etc. It is assumed that the outcomes
from providing justice and achieving efficiency in the
management of personnel activities will result ultimately in
achieving organizational success.
Human resource management is the new version of personnel
management. There is no any watertight difference between
human resource management and personnel management.
However, there are some differences in the following matters.
1. Personnel management is a traditional approach of managing
people in the organization. Human resource management is a
modern approach of managing people and their strengths in the
organization.
2. Personnel management focuses on personnel administration,
employee welfare and labor relation. Human resource
management focuses on acquisition, development, motivation
and maintenance of human resources in the organization.
3. Personnel management assumes people as a input for achieving
desired output. Human resource management assumes people as
an important and valuable resource for achieving desired output.

4. Under personnel management, personnel function is

undertaken for employee's satisfaction. Under human resource
management, administrative function is undertaken for goal
achievement.
5. Under personnel management, job design is done on the basis
of division of labor. Under human resource management, job
design function is done on the basis of group work/team work.
6. Under personnel management, employees are provided with
less training and development opportunities. Under human
resource management, employees are provided with more
training and development opportunities.
7. In personnel management, decisions are made by the top
management as per the rules andregulation of the organization. In
human resource management, decisions are made collectively
after considering employee's participation, authority,
decentralization, competitive environment etc.
8. Personnel management focuses on increased production and
satisfied employees. Human resource management focuses on
effectiveness, culture, productivity and employee's participation.
9. Personnel management is concerned with personnel manager.
Human resource management is concerned with all level of
managers from top to bottom.
10. Personnel management is a routine function. Human resource
management is a strategic function.
New Role of Human Resource Management

Human Resource Management in the “New Millenium” has
undergone a great revolution by questioning the accepted
practices and re-inventing the organisations as well as structures.
Many traditional practices have been thrown out. As an example,

it can be seen that hierarchies are vanishing and there is greater
emphasis on flat organisations. It means a great deal of
specialisation and skills. It also means upgrading the norms and
standards of work as well as performance. The newrole of human
resource management is much more strategic than before.
Some of the new directions of the role of HRM can be summed
up as follows:
1. A Facilitator of Change: To carry people through upheaval
requires the true management of human resources.
2. An Integrated Approach to Management: Rather than being
an isolated function, human resource is regarded as a core
activity, one which shapes a company‘s values. In particular, this
can have an impact on customer service.
3. A Mediator: Establishing and balancing the new and emerging
aspirations and requirements of the company and the individual.
HRM and competitive advantage
Competitive advantage in HR refers to the quality of the
employees who can not be copied, unlike company's systems and
processes. It comes down to the fact that companies with better
employees have the competitive advantage.
HR is important as it helps in creating strong competitive
advantage through their personnel management policies –
productivity and employee happiness is an advantage that often
results in superior customer service, which helps drive sales.
Achieving competitive success through people requires a basic
change in how managers think about their employees and how
they view the working relationship.
For gaining competitive advantage through people, Professor

Pfeffer of Harvard University suggested few HRM guidelines and
these are listed below:
Employment Security
Employment security is a critical element of a high-performance
work arrangement. The security of employment signals a
longstanding commitment by the organization to its workforces.
Feeling of stable employment may generate loyalty, commitment,
or willingness to expend extra efforts for the organization’s
benefits.
Employment security enhances employee involvement because
employees are more willing to contribute to the work process
when they need not fear losing their own or co-workers’ jobs.
Selective Recruiting
Organizations serious about making a profit through people will
expend the efforts needed to ensure that they recruit the right
people in the first place. Organizations need to have a large
applicant pool from which to select the right person.
Organizations need to be clear about what are the most critical
skills and attributes needed in their application pool. Care must
be taken while selecting employees.
If organizations select a less qualified employee, he or she will be
a burden for the organization for a long time.
High and Lucrative Wages
An organization can attract and retain qualified candidates if it
pays a high and lucrative pay package. Higher wages tend to
attract more outstanding applicants, permitting the organization
to be more selective in finding people who will be committed to
the organization. Higher wages send a message that the

organization values its people.
Incentive Pay
The pay system should be based on the performance or
productivity of employees. Employees will contribute more if
they earn more. The contingent incentive can take many forms,
such as gain sharing, profit sharing, stock ownership, pay for
skills, or various forms of individual or team incentives.
Employee Ownership
Organizations should make an employee a mini-employer. This
can be done by a stock ownership plan. This may increase their
sense of ownership. Employee ownership reduces conflict
between labor and capital. Employee ownership puts stock in the
hands of people. These employees are more inclined to take a
long term view of the organization, its investment policies and
strategies, and less likely to support hostile takeovers and
acquisitions. It has a positive effect on the firm’s performance if
managed properly.
Employee Empowerment and Participation
Empowerment indicates many things to many experts. It refers to
mutual influence, creative distribution of power, and shared
responsibility. It is a democratic and long-lasting process.
Empowering enables people to use their talents and capabilities,
fosters accomplishment, invests in learning, finds the spirit in an
organization and builds effective relationships, informs, leads,
coaches, serves, creates, and liberates. Participation increases
both satisfaction and employee productivity. Managers should
encourage the decentralization of decision making.

Information Sharing
If people are to be a source of competitive advantage, they must
have the information necessary to do what is required to be
successful. Information sharing is an essential element of high-
performance work systems. The sharing of information on issues
like budget, strategy, and financial performance conveys the
people of an organization that they are trusted.
Training and Development of Skills
Training is an essential component of high-performance works
systems because these systems rely on front line employee’s skill
and initiative to identify and resolve problems, to initiate change
in work methods, and to take responsibility for quality
Treat People with Respect and Dignity

Dignity is a term used in moral, ethical, legal, and political
discussions to signify that human being has an innate right to be
valued and receive ethical treatment. At the heart of human right,
it is the belief that everybody should be treated equally and with
dignity – no matter what their circumstances. This means that
nobody should be tortured or treated as an inhuman or degrading
way. It also means that nobody has the right to ‘own’ another
person or to force them to work under threat of punishment. And
it means that everybody should have access to public services and
the right to be treated fairly by those services. This applies to all
public services, including the criminal justice system.
Wage Compression
Pay differential among the levels of management should be
lower.

Wage compression between senior managers and other

employees will reduce status differences and develop a sense of
common fate. A huge pay gap may damage the cooperative spirit
between managers and workers. Wage compression is the
situation that occurs when there is only a small difference in pay
between employees regardless of their skills or experience.
Promotion from Within

It is of vital importance to encourage employee promotion from
within the organization. This practice may boost employee
morale. It encourages training and skill development because of
the availability of promotion opportunities within the firm bind
workers to employers and vice versa.

MODULE II
PROCUREMENT OF HR
HUMAN RESOURCE PLANNING

Introduction
Human Resource Planning is concerned with the planning the
future manpower requirements are the organisation. Human
Resource manager ensures that the company has 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. Obviously, human resource planning primarily makes
appropriate projections for future manpower needs of the
organisation envisages plan for developing the manpower to suit
the changing needs of the organisation from time to time, and
foresees how to monitor and evaluate the future performance. It
also includes the replacement plans and managerial succession
plans. Human Resource planning is the process by which a
management determines how an organisation should move from
its current manpower position to its desired manpower position.
Through planning a management strives to have the right number
and the right kinds 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.
Definitions of Human Resource Planning:

According to Wikstrom, Human Resource Planning consists of a
series of activities, viz.,

(a) Forecasting future manpower requirements, either in terms of

mathematical projections of trends in the economic environment
and developments in industry, or in terms of judgemental
estimates based upon the specific future plans of a company;
(b) Making an inventory of present manpower resources and
assessing the extent to which these resources are employed
optimally;
(c) Anticipating manpower problems by projecting present
resources into the future and comparing them with the forecast of
requirements to determine their adequacy, both quantitatively and
qualitatively; and
(d) Planning the necessary programmes of requirements,
selection, training, development, utilisation, transfer, promotion,
motivation and compensation to ensure that future manpower
requirements are properly met.
Coleman has defined Human Resource Planning as “the process
of determining manpower requirements and the means for
meeting those requirements in order to carry out the integrated
plan of the organisation”.
Human resource planning is a double-edged weapon. If used
properly, it leads to the maximum utilisation of human resources,
reduces excessive labour turnover and high absenteeism;
improves productivity and aids in achieving the objectives of an
organisation. Faultily used, it leads to disruption in the flow of
work, lower production, less job satisfaction, high cost of
production and constant headaches for the management
personnel. Therefore, for the success of an enterprise, human
resource planning is a very important function, which can be
neglected only at its own peril.

Objectives of HR Planning
The major objectives of Human Resource Planning in an
organisation are to:
(i) ensure optimum use of human resources currently employed;
(ii) Avoid balances in the distribution and allocation of human
resources;
(iii) assess or forecast future skill requirements of the
organisation‘s overall objectives;
(iv) Provide control measure to ensure availability of necessary
resources when required;
(v) Control the cost aspect of human resources;
(vi) Formulate transfer and promotion policies.
Steps in Human Resource Planning
Human resource planning refers to a process by which companies
ensure that they have the right number and kinds of people at the
right place, at the right time; capable of performing diverse jobs
professionally. Planning the use of human resources is an
important function in every organisation. A rational estimate to
various categories of personnel in the organisation is an important
aspect of human resource planning. HRP involves the following
steps:
1. Analysis of Organisational Plans and Objectives: Human
resource planning is a part of overall plan of organisation. Plans
concerning technology, production, marketing, finance,
expansion and diversification give an idea about the volume of
future work activity. Each plan can further be analysed into sub-
plans and detailed programmes. It is also necessary to decide the
time horizon for which human resource plans are to be prepared.

The future organisation structure and job design should be made
clear and changes in the organisation structure should be
examined so as to anticipate its manpower requirements.
2. Forecasting Demand for Human Resources: Human
resource planning starts with the estimation of the number and
type of personnel required at different levels and in different
departments. 3. Forecasting Supply of Human Resources: One
of the important areas of human resources planning is to deal with
allocation of persons to different departments depending upon the
workload and requirements of the departments. While allocating
manpower to different departments, care has to be taken to
consider appointments based on promotions and transfers.
Allocation of human resource should be so planned that available
manpower is put to full use to ensure smooth functioning of all
departments.
4. Estimating Manpower Gaps: Net human resource
requirements or manpower gaps can be identified by comparing
demand and supply forecasts. Such comparison will reveal either
deficit or surplus of human resources in future. Deficits suggest
the number of persons to be recruited from outside whereas
surplus implies redundant to be redeployed or terminated.
Similarly, gaps may occur in terms of knowledge, skills and
aptitudes. Employees deficient in qualifications can be trained
whereas employees with higher skills may be given more
enriched jobs.
5. Matching Demand and Supply : It is one of the objectives of
human resource planning to assess the demand for and supply of
human resources and match both to know shortages and surpluses
on both the side in kind and in number. This will enable the
human resource department to know overstaffing or
understaffing. Once the manpower gaps are identified, plans are
prepared to bridge these gaps. Plans to meet the surplus

manpower may be redeployment in other departments and
retrenchment in consultation, with the trade unions. People may
be persuaded to quit through voluntarily retirement. Deficit can
be met through recruitment, selection, transfer, promotion, and
training plans. Realistic plans for the procurement and
development of manpower should be made after considering the
macro and micro environment which affect the manpower
objectives of the organisation.
Importance of Human Resource Planning

HRP is the subsystem in the total organizational planning.
Organizational planning includes managerial activities that set
the company’s objective for the future and determines the
appropriate means for achieving those objectives. The importance
of HRP is elaborated on the basis of the key roles that it is playing
in the organization.
1. Future Personnel Needs: Human resource planning is
significant because it helps to determine the future personnel
needs of the organization. If an organization is facing the problem
of either surplus or deficiency in staff strength, then it is the result
of the absence of effecting HR planning. All public sector
enterprises find themselves overstaffed now as they never had any
planning for personnel requirement and went of recruitment spree
till late 1980’s. The problem of excess staff has become such a
prominent problem that many private sector units are resorting to
VRS ‘voluntary retirement scheme’. The excess of labour
problem would have been there if the organization had good HRP
system. Effective HRP system will also enable the organization
to have good succession planning.
2. Part of Strategic Planning: HRP has become an integral part
of strategic planning of strategic planning. HRP provides inputs
in strategy formulation process in terms of deciding whether the

organization has got the right kind of human resources to carry
out the given strategy. HRP is also necessary during the
implementation stage in the form of deciding to make resource
allocation decisions related to organization structure, process and
human resources. In some organizations HRP play as significant
role as strategic planning and HR issues are perceived as inherent
in business management.
3. Creating Highly Talented Personnel: Even though India has
a great pool of educated unemployed, it is the discretion of HR
manager that will enable the company to recruit the right person
with right skills to the organization. Even the existing staff hope
the job so frequently that organization face frequent shortage of
manpower. Manpower planning in the form of skill development
is required to help the organization in dealing with this problem
of skilled manpower shortage.
4. International Strategies: An international expansion strategy
of an organization is facilitated to a great extent by HR planning.
The HR department’s ability to fill key jobs with foreign nationals
and reassignment of employees from within or across national
borders is a major challenge that is being faced by international
business. With the growing trend towards global operation, the
need for HRP will as well will be the need to integrate HRP more
closely with the organizations strategic plans. Without effective
HRP and subsequent attention to employee recruitment,
selection, placement, development, and career planning, the
growing competition for foreign executives may lead to
expensive and strategically descriptive turnover among key
decision makers.
5. Foundation for Personnel Functions: HRP provides essential
information for designing and implementing personnel functions,

such as recruitment, selection, training and development,

personnel movement like transfers, promotions and layoffs.
6. Increasing Investments in Human Resources: Organizations
are making increasing investments in human resource
development compelling the increased need for HRP.
Organizations are realizing that human assets can increase in
value more than the physical assets. An employee who gradually
develops his/ her skills and abilities become a valuable asset for
the organization. Organizations can make investments in its
personnel either through direct training or job assignment and the
rupee value of such a trained, flexible, motivated productive
workforce is difficult to determine. Top officials have started
acknowledging that quality of work force is responsible for both
short term and long term performance of the organization.
7. Resistance to Change: Employees are always reluctant
whenever they hear about change and even about job rotation.
Organizations cannot shift one employee from one department to
another without any specific planning. Even for carrying out job
rotation (shifting one employee from one department to another)
there is a need to plan well ahead and match the skills required
and existing skills of the employees.
8. Succession Planning: Human Resource Planning prepares
people for future challenges. The ‘stars’ are picked up, trained,
assessed and assisted continuously so that when the time comes
such trained employees can quickly take the responsibilities and
position of their boss or seniors as and when situation arrives.
9. Other Benefits: (a) HRP helps in judging the effectiveness of
manpower policies and programmes of management. (b) It
develops awareness on effective utilization of human resources
for the overall development of organization. (c) It facilitates
selection and training of employees with adequate knowledge,
experience and aptitudes so as to carry on and achieve the

organizational objectives (d) HRP encourages the company to
review and modify its human resource policies and practices and
to examine the way of utilizing the human resources for better
utilization.
JOB ANALYSIS
Developing an organizational structure, results in jobs which
have to be staffed. Job analysis is the procedure through which
you determine the duties and nature of the jobs and the kinds of
people (in terms of skills and experience) who should be hired for
them. Some of the definitions of job analysis are:
According to Michael L. Jucius, “Job analysis refers to the
process of studying the operations, duties and organizational
aspects of jobs in order to derive specifications or as they called
by some, job descriptions.”
According to DeCenzo and P. Robbins, “A job analysis is a
systematic exploration of the activities within a job. It is a basic
technical procedure, one that is used to define the duties,
responsibilities, and accountabilities of a job.”
Information provided by Job Analysis
Job analysis provides the following information:
1. Job Identification: Its title, including its code number;
2. Significant Characteristics of a Job: It location, physical
setting, supervision, union jurisdiction, hazards and discomforts;
3. What the Typical Worker Does : Specific operation and tasks
that make up an assignment, their relative timing and importance,

their simplicity, routine or complexity, the responsibility or safety

of others for property, funds, confidence and trust;
4. Which Materials and Equipment a Worker Uses: Metals,
plastics, grains, yarns, milling machines, punch presses and
micrometers;
5. How a Job is Performed: Nature of operation - lifting,
handling, cleaning, washing, feeding, removing, drilling, driving,
setting-up and many others;
6. Required Personal Attributes: Experience, training,
apprenticeship, physical strength, coordination or dexterity,
physical demands, mental capabilities, aptitudes, social skills;
7. Job Relationship: Experience required, opportunities for
advancement, patterns of promotions, essential co-operation,
direction, or leadership from and for a job.
Sources of Information for Job Analysis
According to George R. Terry, “the make-up of a job, its relation
to other jobs, and its requirements for competent performance are
essential information needed for a job analysis”.
Information on a job may be obtained from three principal
sources:
(a) From the employees who actually perform a job;
(b) From other employees such as supervisors and foremen who
watch the workers doing a job and thereby acquire knowledge
about it; and
(c) From outside observers specially appointed to watch
employees performing a job. Such outside persons are called the
trade job analysts.
Methods of Job Analysis

Four methods or approaches are utilised in analysing jobs. They
are:
1. Personal Observation: The materials and equipment used, the
working conditions and probable hazards, and an understanding
of what the work involves are the facts which should be known
by an analyst.
2. Sending out of Questionnaires: Properly drafted
questionnaires are sent out to job-holders for completion and are
returned to supervisors.
3. Maintenance of Long Records: The employee maintains a
daily record of duties he performs, marking the time at which
each task is started and finished.
4. Critical Incidents: In this method, job holders are asked to
describe incidents concerning the job on the basis of their past
experience. The incidents so collected are analyzed and classified
according to the job areas they describe
5. Personal Interviews: Personal interviews may be held by the
analyst with the employees, and answers to relevant questions
may be recorded. But the method is time-consuming and costly.
6. Technical Conference Method: This method utilizes
supervisors with extensive knowledge of the job. Here, specific
characteristics of a job are obtained from the “experts.”
7. Functional Job Analysis: Functional job analysis (FJA) is
employee- oriented analytical approach of job analysis. This
approach attempts to describe the whole person on the job.

Purposes and Uses of Job Analysis

The information provided by job analysis is useful in almost
every phase of employee relations. Its purposes and uses can be
understood from the following points:
1. Organisation and Manpower Planning: It is helpful in
organisational planning for it defines labour needs in concrete
terms and coordinates the activities of the work force, and clearly
divides duties and responsibilities.
2. Recruitment and Selection: By indicating the specific
requirements of each job (i.e., the skills and knowledge), it
provides a realistic basis for hiring, training, placement, transfer
and promotion of personnel.
3. Wage and Salary Administration: By indicating the
qualifications required for doing specified jobs and the risks and
hazards involved in its performance, it helps in salary and wage
administration. Job analysis is used as a foundation for job
evaluation.
4. Job Re-engineering: Job analysis provides information which
enables us to change jobs in order to permit their being manned
by personnel with specific characteristics and qualifications.
5. Employee Training and Management Development: Job
analysis provides the necessary information to the management
of training and development programmes.
6. Performance Appraisal: It helps in establishing clear-cut
standards which may be compared with the actual contribution of
each individual.
7. Health and Safety: It provides an opportunity for indentifying
hazardous conditions and unhealthy environmental factors so that
corrective measures may be taken to minimise and avoid the

possibility of accidents.
Process of Job Analysis

Following are the important steps in the process of job analysis:
1. Determine the Use of the Job Analysis Information: Start
by identifying the use to which the information will be put, since
this will determine the type of data you collect and the technique
you use to collect them.
2. Collection of Background Information: According to Terry,
“The make-up of a job, its relation to other jobs, and its
requirements for competent performance are essential
information needed for a job evaluation. This information can be
had by reviewing available background information such as
organization charts and the existing job descriptions.
3. Selection of Jobs for Analysis: Job analysis is a costly and
time consuming process. Hence, it is necessary to select a
representative sample of jobs for the purposes of analysis.
Priorities of various jobs can also be determined.
4. Collection of Job Analysis Data: Job data on features of the
job, required employee qualification and requirements, should be
collected either from the employees who actually perform a job;
or from other employees who watch the workers, or from the
outside persons.
5. Processing the Information: Once job analysis information
has been collected, the next step is to place it in a form that will
make it useful to those charged with the various personnel
functions.

Several issues arise with respect to this. First, how much detail is
needed? Second, can the job analysis information be expressed in
quantitative terms? These must be considered properly.
6. Preparing Job Descriptions and Job Classifications: Job
information which has been collected must be processed to
prepare the job description form. It is a statement showing full
details of the activities of the job. Separate job description forms
may be used for various activities in the job and may be compiled
later on. The job analysis is made with the help of these
description forms. These forms may be used as reference for the
future.
7. Developing Job Specifications: Job specifications are also
prepared on the basis of information collected. It is a statement of
minimum acceptable qualities of the person to be placed on the
job. It specifies the standard by which the qualities of the person
are measured.
Job Description
Job description is a written record of the duties, responsibilities
and requirements of a particular job. It is concerned with the job
itself and not with the work. It is a statement describing the job in
such terms as its title, location, duties, working conditions and
hazards. In other words, it tells us what is to be done and how it
is to be done and why. It is a standard of function, in that it defines
the appropriate and authorised contents of a job.
A job description contains the following:
1. Job identification, which includes the job title, alternative
title, department, division, plant and code number of the job. The
job title identifies and designates the job properly.

2. Job Summary serves two important purposes. First it provides

a short definition which is useful as additional identification
information when a job title is not adequate. Second, it serves as
a summary to orient the reader.
3. Job duties give us a comprehensive listing or the duties
together with some indication of the frequency of occurrence or
percentage of time devoted to each major duty. It is regarded as
the heart of a job.
4. Relation to other jobs: This helps us to locate the job in the
organisation by indicating the job immediately below or above it
in the job hierarchy. It also gives us an idea of the vertical
relationships of work flow and procedures.
5. Supervision: Under it is given the number of persons to be
supervised along with their job titles, and the extent of
supervision involved – general, intermediate or close supervision.
6. Working conditions usually give us information about the
environment in which a job holder must work.
Job Specification
The job specification states the minimum acceptable
qualifications that the incumbent must possess to perform the job
successfully. Based on the information acquired through job
analysis, the job specification identifies the knowledge, skills,
and abilities needed to do the job effectively.
According to Dale Yoder, “The job specification, as such a
summary properly described is thus a specialized job description,
emphasizing personnel requirement and designed especially to
facilitate selection and placement.”
A Job Specification should include:
(i) Physical characteristics, which include health, strength,

endurance, age, height, weight, vision, voice, eye, hand and foot
co-ordination, motor co-ordination, and colour discrimination.
(ii) Psychological and social characteristics such as emotional
stability, flexibility, decision making ability, analytical view,
mental ability, pleasing manners, initiative, conversational ability
etc.
(iii) Mental Characteristics such as general intelligence, memory,
judgement, ability to concentrate, foresight etc.
(iv) Personal Characteristics such as sex, education, family
background, job experience, hobbies, extracurricular activities
etc.
Job Design
Job design is of comparatively recent origin. The human resource
managers have realized that the poorly designed jobs often result
in boredom to the employees, increased turnover, job
dissatisfaction, low productivity and an increase in overall costs
of the organization. All these negative consequences can be
avoided with the help of proper job design. According to Jon
Werner and DeSimone, “Job design is the development and
alteration of the components of a job (such as the tasks one
performs, and the scope of one’s responsibilities) to improve
productivity and the quality of the employees’ work life.”
Principles of Job Design
Principles are the bases of the approach used in job design.
Robertson and Smith (1985) have suggested the following five
principles of job design:
 To influence skill variety, provide opportunities for people to

do several tasks and combine tasks.
 To influence task identity, combine tasks and from natural

work units.
 To influence task significance, form natural work units and

inform people of the importance of their work.
 To influence autonomy, give people responsibility for

determining their own working systems.
 To influence feedback; establish good relationship and open

feedback channels.
Methods or Techniques of Job Design

The various techniques of job design and redesign are as follows:
1. Job Simplification: In job simplification, the complete job is
broken down into small subparts; this is done so that employee
can do these jobs without much specialized training.
For job simplification, generally time and motion studies are
used.
2. Job Rotation: Another technique designed to enhance
employee motivation is job rotation, or periodically assigning
employees to alternating jobs or tasks.
3. Job Enlargement: Another means of increasing employee’s
satisfaction with routine jobs is increasing the number of tasks
performed (i.e. increasing the scope of the job). This is called job
enlargement.
4. Job Enrichment: The concept of job enrichment has been
derived from Herzberg’s twofactor theory of motivation in which
he has suggested that job content is one of the basic factors of
motivation. If the job is designed in such a manner that it becomes

more interesting and challenging to the job performer and
provides him opportunities for achievement, recognition,
responsibility, advancement and growth, the job itself becomes a
source of motivation to the individual.
According to P. Robbins, “Job enrichment refers to the vertical
expansion of the jobs. It increases the degree to which the worker
controls the planning, execution and evaluation of his work.”
Job Evaluation
Job Evaluation is a system wherein a particular job of an
enterprise is compared with its other jobs. In the present industrial
era, there are different types of jobs which are performed in every
business and industrial enterprise. Comparative study of these
jobs is very essential because on the basis of such study the
structure of wages for different types of jobs is prepared. The
comparison of jobs may be made on the basis of different factors
such as duties, responsibilities, working conditions, efforts, etc.
In nut shell, it may be said that job evaluation is a process in
which a particular job of a business and industrial enterprise is
compared with other jobs of the enterprise.
Kimball and Kimball define job evaluation as “an effort to
determine the relative value of every job in a plant to determine
what the fair basic wage for such a job should be.”
According to Wendell French, ―job evaluation is a process of
determining the relative worth of the various jobs within the
organisation, so that differential wages may be paid to jobs of
different worth. The relative worth of a job means relative value
produced.

We may define job evaluation as a process of analysing and

describing positions, grouping them and determining their
relative value of comparing the duties of different position in
terms of their different responsibilities and other requirements.
Objectives of Job Evaluation

The following are the objectives of job evaluation:
(i) To secure and maintain complete, accurate and impersonal
descriptions of each distinct job or occupation in the entire plant;
(ii) To provide a standard procedure for determining the relative
worth of each job in a plant;
(iii) To determine the rate of pay for each job which is fair and
equitable with relation to other jobs in the plant, community or
industry?
(iv) To ensure that like wages are paid to all qualified employees
for like work;
(v) To promote a fair and accurate consideration of all employees
for advancement and transfer;
(vi) To provide a factual basis for the consideration of wage rates
for similar jobs in a community and industry.
RECRUITMENT
Recruitment means search of the prospective employee to suit the
job requirements as represented by job specification. It is the
process of attracting people to apply for jobs in an organisation.
According to Edwin B. Flippo: “Recruitment is the process of
searching for prospective employees and stimulating them to
apply for jobs in the organisation.”
Factors affecting Recruitment

The factors affecting recruitment can be classified as internal and
external factors.
The internal factors are:
 Wage and salary policies;

 The age composition of existing working force;
 Promotion and retirement policies;
 Turnover rates;
 The nature of operations involved the kind of personnel
required;
 The level and seasonality of operations in question;
 Future expansion and reduction programmes;
 Recruiting policy of the organisation;
 Human resource planning strategy of the company;
 Size of the organisation and the number of employees
employed;
 . Cost involved in recruiting employees, and finally;
 Growth and expansion plans of the organisation.

The external factors are:
 Supply and demand of specific skills in the labour market;
 Company’s image perception of the job seekers about the

company.
 External cultural factors: Obviously, the culture may exert

considerable check on recruitment. For example, women
may not be recruited in certain jobs in industry.
 Economic factors: such as a tight or loose labour market,

the reputation of the enterprise in the community as a
good pay master or otherwise and such allied issues which
determine the quality and quantity of manpower
submitting itself for recruitment.
 Political and legal factors also exert restraints in respect

of nature and hours of work for women and children, and
allied employment practices in the enterprise, reservation
of Job for SC, ST and so on.
Sources of Recruitment
The various sources of recruitment are generally classified as
internal source and external source.
(a) Internal Sources: This refers to the recruitment from within
the company. The various internal sources are promotion,
transfer, past employees and internal advertisements.
(b) External Sources: External sources refers to the practice of
getting suitable persons from outside.
The various external sources are advertisement, employment
exchange, past employees, private placement agencies and
consultants, walks-ins, campus recruitment, trade unions, etc.
The following external sources of recruitment are commonly used
by the big enterprises:
1. Direct Recruitment: An important source of recruitment is
direct recruitment by placing a notice on the notice board of the
enterprise specifying the details of the jobs available. It is also

known as recruitment at factory gate.
2. Casual Callers or Unsolicited Applications: The organisations
which are regarded as good employers draw a steady stream of
unsolicited applications in their offices. This serves as a valuable
source of manpower.
3. Media Advertisement: Advertisement in newspapers or trade
and professional journals is generally used when qualified and
experienced personnel are not available from other sources.
4. Employment Agencies: Employment exchanges run by the
Government are regarded as a good source of recruitment for
unskilled, semi-skilled and skilled operative jobs. In some cases,
compulsory notification of vacancies to the employment
exchange is required by law.
5. Management Consultants: Management consultancy firms help
the organisations to recruit technical, professional and managerial
personnel they specialise middle level and top level executive
placements.
6. Educational Institutions or Campus Recruitment: Big
organisations maintain a close liaison with the universities,
vocational institutes and management institutes for recruitment to
various jobs. Recruitment from educational institutional is a well
- established practice of thousand of business and other
organisations.
7. Recommendation: Applicants introduced by friends and
relatives may prove to be a good source of recruitment.
8. Labour Contractors: Workers are recruited through labour
contractors who are themselves employees of the organisation.

Recruitment through labour contractors has been banned for the

public sector units.
9. Telecasting: The practice of telecasting of vacant posts over
T.V. is gaining importance these days. Special programmes like
‘Job Watch', ‘Youth Pulse’, ‘ Employment News’, etc. over the
T.V have become quite popular in recruitment for various types
of jobs.
10.Raiding: Raiding is a technical term used when employees
working elsewhere are attracted to join organisations. The
organisations are always on the lookout for qualified
professionals, and are willing to offer them a better deal if they
make the switch.
Merits of External Source of Recruitment
The merits of external sources of recruitment are as under:
1. Qualified Personnel: By using external sources of recruitment
the management can make qualified and trained people to apply
for vacant Jobs in the organisation.
2. Wider choice: When vacancies are advertised widely a large
number of applicants from outside the organisation apply. The
management has a wider choice while selecting the people for
employment.
3. Fresh Talent: The insiders may have limited talents. External
sources facilitate infusion of fresh blood with new ideas into the
enterprise. This will improve the overall working of the
enterprise.
4. Competitive Spirit: If a company can tap external sources, the
existing staff will have to compete with the outsiders. They will
work harder to show better performance.
Demerits of External Sources

The demerits of filling vacancies from external sources are as
follows:
1. Dissatisfaction among Existing Staff: External recruitment
may lead to dissatisfaction and frustration among existing
employees. They may feel that their chances of promotion are
reduced.
2. Lengthy Process: Recruitment from outside takes a long time.
The business has to notify the vacancies and wait for applications
to initiate the selection process.
3. Costly Process: It is very costly to recruit staff from external
sources. A lot of money has to be spent on advertisement and
processing of applications.
4. Uncertain Response: The candidates from outside may not be
suitable for the enterprise.
There is no guarantee that the enterprise will be able to attract
right kinds of people from external sources.
SELECTION
Human resource selection is the process of preferring qualified
individuals who are available to fill positions in an organization.
Selection involves both picks up the fits and rejects the unfits.
Therefore, sometimes, it is called a negative process.
According to Thomas Stone, “Selection is the process of
differentiating between applicants in order to identify (and hire)
those with a greater likelihood of success in a job”.

Difference between Recruitment and Selection

1. Difference in Objective: The basic objective of recruitment is
to attract maximum number of candidates so that more options
are available. The basic objective of selection is to choose best
out of the available candidates.
2. Difference is Process: Recruitment adopts the process of
creating application pool as large as possible and therefore. It is
known as positive process. Selection adopts the process through
which more and more candidates are rejected and fewer
candidates are selected or sometimes even not a single candidate
is selected. Therefore, it is known as negative process or rejection
process.
3. Technical Differences: Recruitment techniques are not very
intensive, and not require high skills. As against this, in selection
process, highly specialised techniques are required. Therefore, in
the selection process, only personnel with specific skills like
expertise in using selection tests, conducting interviews, etc., are
involved.
4. Difference in Outcomes: The outcome of recruitment is
application pool which becomes input for selection process. The
outcome of selection process is in the form of finalising
candidates who will be offered jobs.
Selection Procedure
1. Application Pool: Application pool built-up through
recruitment process is the base for selection process. The basic
objective at the recruitment level is to attract as much worthwhile
applications as possible so that there are more options available
at the selection stage.

2. Preliminary Screening and Interview: It is highly

noneconomic to administer and handle all the applicants. It is
advantageous to sort out unsuitable applicants before using the
further selection steps. For this purpose, usually, preliminary
interviews, application blank lists and short test can be used. All
applications received are scrutinised by the personnel department
in order to eliminate those applicants who do not fulfil required
qualifications or work experience or technical skill, his
application will not be entertained. Such candidate will be
informed of his rejection.
3. Application Blank or Application Form: An application
blank is a traditional widely accepted device for getting
information from a prospective applicant which will enable the
management to make a proper selection. Information is generally
taken on the following items:
(a) Biographical Data: Name, father’s name, data and place of
birth, age, sex, nationality, height, weight, identification marks,
physical disability, if any, marital status, and number of
dependants.
(b) Educational Attainment: Education (subjects offered and
grades secured), training acquired in special fields and knowledge
gained from professional/technical institutes or through
correspondence courses.
(c) Work Experience: Previous experience, the number of jobs
held with the same or other employers, including the nature of
duties, and responsibilities and the duration of various
assignments, salary received, grades, and reasons for leaving the
present employer.
(d) Salary and Benefits: Present and expected.

(e) Other Items: Names and addresses of previous employers,

references etc. An application blank is a brief history sheet of an
employee’s background and can be used for future reference, in
case needed.
4. Selection Tests: Many organisations hold different kinds of
selection tests to know more about the candidates or to reject the
candidates who cannot be called for interview etc. Selection tests
normally supplement the information provided in the application
forms. Such forms may contain factual information about
candidates.
A. Aptitude Tests: These measure whether an individual has the
capacity or talent ability to learn a given job if given adequate
training. These are more useful for clerical and trade positions.
B. Personality Tests: At times, personality affects job
performance. These determine personality traits of the candidate
such as cooperativeness, emotional balance etc. These seek to
assess an individual’s motivation, adjustment to the stresses of
everyday life, capacity for interpersonal relations and self-image.
C. Interest Tests: These determine the applicant’s interests. The
applicant is asked whether he likes, dislikes, or is indifferent to
many examples of school subjects, occupations, amusements,
peculiarities of people, and particular activities.
D. Performance Tests: In this test the applicant is asked to
demonstrate his ability to do the job. For example, prospective
typists are asked to type several pages with speed and accuracy.
E. Intelligence Tests: This aim at testing the mental capacity of a
person with respect to reasoning, word fluency, numbers,
memory, comprehension, picture arrangement, etc. It measures
the ability to grasp, understand and to make judgement.

F. Knowledge Tests: These are devised to measure the depth of

the knowledge and proficiency in certain skills already achieved
by the applicants such as engineering, accounting etc.
G. Achievement Tests: Whereas aptitude is a capacity to learn in
the future, achievement is concerned with what one has
accomplished. When applicants claim to know something, an
achievement test is given to measure how well they know it.
H. Projective Tests: In these tests the applicant projects his
personality into free responses about pictures shown to him which
are ambiguous.
5. Interview: An interview is a procedure designed to get
information from a person and to assess his potential for the job
he is being considered on the basis of oral responses by the
applicant to oral inquiries by the interviewer. Interviewer does a
formal in-depth conversation with the applicant, to evaluate his
suitability. It is one of the most important tools in the selection
process. This tool is used when interviewing skilled, technical,
professional and even managerial employees. It involves twoway
exchange of information. The interviewer learns about the
applicant and the candidate learns about the employer.
6. Background Investigation: The next step in the selection
process is to undertake an investigation of those applicants who
appear to offer potential as employees. This may include
contacting former employers to confirm the candidate’s work
record and to obtain their appraisal of his or her performance/
contacting other job-related and personal references, and
verifying the educational accomplishments shown on the
application.
7. Physical Examination: After the selection decision and before
the job offer is made, the candidate is required to undergo
physical fitness test. Candidates are sent for physical examination

either to the company’s physician or to a medical officer
approved for the purpose. Such physical examination provides
the following information:
 Whether the candidate’s physical measurements are in

accordance with job requirements or not?
 Whether the candidate suffers from bad health which should

be corrected?
 Whether the candidate has health problems or psychological

attitudes likely to interfere with work efficiency or future
attendance?
 Whether the candidate is physically fit for the specific job or

not?
8. Approval by Appropriate Authority: On the basis of the
above steps, suitable candidates are recommended for selection
by the selection committee or personnel department. Though such
a committee or personnel department may have authority to select
the candidates finally, often it has staff authority to recommend
the candidates for selection to the appropriate authority.
9. Final Employment Decision: After a candidate is finally
selected, the human resource department recommends his name
for employment. The management or board of the company offers
employment in the form of an appointment letter mentioning the
post, the rank, the salary grade, the date by which the candidate
should join and other terms and conditions of employment. Some
firms make a contract of service on judicial paper. Usually an
appointment is made on probation in the beginning. The
probation period may range from three months to two years.

When the work and conduct of the employee is found satisfactory,

he may be confirmed.
10. Evaluation: The selection process, if properly performed,
will ensure availability of competent and committed personnel. A
period audit, conducted by people who work independently of the
human resource department, will evaluate the effectiveness of the
selection process. The auditors will do a thorough and the
intensive analysis and evaluate the employment programme.
ORIENTATION (INDUCTION)
The introduction of the new employee to the job is known as
induction. It is the process by which new employees are
introduced to the practices, policies and purposes of the
organisation. Induction follows placement and consists of the task
of orienting or introducing the new employee to the company, its
policy and its position in the economy. Induction literally means
helping the worker to get or with his own environment. After an
employee is assigned his job, it is necessary to introduce him to
his job situation, his associates in the job and the overall policies
of the company.
In other words, it is a welcoming process-the idea is to welcome
a newcomer, make him feel at home and generate in him a feeling
that his job, even though small, is meaningful and has significant
importance as part of the total organisation.
In the words of John M. Ivancevich, “Orientation orients, directs,
and guides employees to understand the work, firm, colleagues,
and mission. It introduces new employees to the organisation, and
to his new tasks, managers, and work groups.”
Orientation is one component of the new employee socialization
process. It is a process through which a new employee is

introduced to the organisation. The new employee is handed over

a rulebook, company booklets, policy manuals, progress reports
and documents containing company information which are
informational in nature. It is responsibility of the human resource
department to execute the orientation programme.
Objectives of Induction
An induction process properly designed should serve the
following objectives:
1) Introduce the new employee and the organisation to each other.
2) Create interest in his job and the company
3) Provide basic information about working arrangements
4) Make the new employee feel ‘at home’ in the new environment
5) Indicate the standards of performance and behaviour expected
from him
6) Inform him about the training facilities
7) Reduce any misunderstanding about the job or the enterprise
8) Facilitate good employee relations
9) Assist the new employee to adjust to the company; and
10) Establish a favourable attitude about the company in the
minds of the employee.
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
requirements of a job with the qualifications of the candidate.

According to Pigors and Myers, “Placement consists in matching

what the supervisor has reason to think the new employee can do
with what the job demands (job requirements), imposes (in strain,
working conditions, etc.), and offers (in the form of pay rate,
interest, companionship with other, promotional possibilities,
etc.)” They further state that it is not easy to match all these
factors for a new worker who is still in many ways an unknown
quantity. For this reason, the first placement usually carries with
it the status of probationer.
A few basic principles should be followed at the time of
placement of an employee on the job.
These may be enumerated as below:
 The job should be offered to the man according to his
qualifications. The placement should neither be higher nor
lower than the qualifications.
 While introducing the job to the new employee, an effort
should be made to develop a sense of loyalty and cooperation
in him so that he may realise his responsibilities better
towards the job and the organisation.
 The employee should be made conversant with the working
conditions prevailing in the industry and all things relating to
the job. He should also be made aware of the penalties if he
commits a wrong.
 Man should be placed on the job according to the
requirements of the job. The job should not be adjusted
according to the qualifications or requirements of the man.
Job first; man next, should be the principle of placement.
 The placement should be ready before the joining date of the
newly selected person.
 The placement in the initial period may be temporary as
changes are likely after the completion of training. The

employee may be later transferred to the job where he can do
better justice.
Significance of placement
The significances of placement are as follows: -
1. It improves employee morale.
2. It helps in reducing employee turnover.
3. It helps in reducing absenteeism.
4. It helps in reducing accident rates.
5. It avoids misfit between the candidate and the job.
6. It helps the candidate to work as per the predetermined
objectives of the organization.

MODULE III
TRAINING AND DEVELOPMENT
Training is an organised activity for increasing the knowledge and

skills of people for a definite purpose. It involves systematic
procedures for transferring technical know-how to the employees
so as to increase their knowledge and skills for doing specific jobs
with proficiency. In other words, the trainees acquire technical
knowledge, skills and problem solving ability by undergoing the
training programme. According to Edwin B. Flippo, “Training is
the act of increasing the knowledge and skills of an employee for
doing a particular job”.
Objectives of Training
(i) To impart to new entrants the basic knowledge and skill they
need for an intelligent performance of definite tasks;
(ii) To assist employees to function more effectively in their
present positions by exposing them to the latest concepts,
information and techniques and developing the skills, they will
need in their particular fields;
(iii) To build up a second line of competent officers and prepare
them to occupy more responsible positions;
(iv) To broaden the minds of senior managers by providing them
with opportunities for an interchange of experiences within and
outside with a view to correcting the narrowness of the outlook
that may arise from over-specialisation;

(v) To impart customer education for the purpose of meeting the

training needs of Corporations which deal mainly with the public.
In a nutshell, the objectives of training are ―to Bridge the gap
between existing performance ability and desired performance.
Need and Importance of Training

1. Increasing Productivity: Instruction can help employees
increase their level of performance on their present job
assignment. Increased human performance often directly leads to
increased operational productivity and increased company profit.
2. Improving Quality: Better informed workers are less likely to
make operational mistakes.
Quality increases may be in relationship to a company product or
service, or in reference to the intangible organisational
employment atmosphere.
3. Helping a Company Fulfil its Future Personnel Needs:
Organisations that have a good internal educational programme
will have to make less drastic manpower changes and adjustments
in the event of sudden personnel alternations. When the need
arises, organisational vacancies can more easily be staffed from
internal sources if a company initiates and maintains and adequate
instructional programme for both its non-supervisory and
managerial employees.
4. Improving Organisational Climate: An endless chain of
positive reactions results from a well-planned training
programme. Production and product quality may improve;
financial incentives may then be increased, internal promotions
become stressed, less supervisory pressures ensue and base pay
rate increases result.

5. Improving Health and Safety: Proper training can help

prevent industrial accidents. A safer work environment leads, to
more stable mental attitudes on the part of employees.
6. Obsolescence Prevention: Training and development
programmes foster the initiative and creativity of employees and
help to prevent manpower obsolescence, which may be due to
age, temperament or motivation, or the inability of a person to
adapt himself to technological changes.
7. Personal Growth: Employees on a personal basis gain
individually from their exposure to educational experiences.
Again, Management development programmes seem to give
participants a wider awareness, an enlarged skin, an enlightened
altruistic philosophy, and make enhanced personal growth
possible.
Distinction between Training and Development
Training Development
Training means learning skills Development means the
and knowledge for doing a gorwth of an employee in all
particular job. It increases job respects. It shapes attitudes.
skills.
The term ‘training’ is The term ‘development’ is

generally used to denote associated with the overall
imparting specific skills growth of the executives.
among operative workers and
employees.
Training is concerned with Executive development seeks

maintaining and improving to develop competence and
current job performance. skills for future performance.

Thus, it has a short-term Thus, it has a long-term

perspective. perspective.
Training is job-centred in Development is career-

nature. centred in nature.
The role of trainer or All development is ‘self

supervisor is very important development’. The executive
in training. has to be internally motivated
for self-development
Methods of training
The following methods are generally used to provide training :
On-the-Job Training Methods:

This type of training is imparted on the job and at the work place
where the employee is expected to perform his duties.
1. On Specific Job: On the job training methods is used to
provide training for a specific job such as electrical, motor
mechanic, pluming etc.
(a) Experience : This is the oldest method of on-the-job training.
Learning by experience cannot and should not be eliminated as a
method of development, though as a sole approach; it is a
wasteful, time consuming and inefficient.
b) Coaching: On-the-Job coaching by the superior is an
important and potentially effective approach is superior. The
technique involves direct personnel instruction and guidance,
usually with extensive demonstration.
2. Job Rotation: The major objective of job rotation training is
the broadening of the background of trainee in the organisation.

If trainee is rotated periodically from one job to another job, he

acquires a general background.
3. Special Projects: This is a very flexible training device. The
trainee may be asked to perform special assignment; thereby he
learns the work procedure.
4. Apprenticeship: Under this method, the trainee is placed
under a qualified supervisor or instructor for a long period of time
depending upon the job and skill required. Wages paid to the
trainee are much less than those paid to qualified workers.
5. Vestibule Training: Under this method, actual work
conditions are created in a class room or a workshop. The
machines, materials and tools under this method is same as those
used in actual performance in the factory.
6. Multiple Management: Multiple management emphasizes
the use of committees to increase the flow of ideas from less
experience managers and to train them for positions of greater
responsibility.
7. Understudy:In this method, a superior gives training to a
subordinate as his understudy like an assistant to a manager or
director (in a film). The subordinate learns through experience
and observation by participating in handling day to day problems.
Basic purpose is to prepare subordinate for assuming the full
responsibilities and duties.
Off-the-job Training Methods:
Following are the off the job training techniques:
1. Special Courses and Lectures: Lecturing is the most
traditional form of formal training method Special courses and

lectures can be established by business organizations in numerous

ways as a part of their development programmes.
2. Conferences: This is also an old method, but still a favorite
training method. In order to escape the limitations of straight
lecturing many organizations have adopted guided, discussion
type of conferences in their training programmes. In this method,
the participant’s pools, their ideas and experience in attempting
to arrive at improved methods of dealing with the problems,
which are common subject of discussion;
3. Case Studies: This technique, which has been developed,
popularized by the Harvard Business School, U.S.A is one of the
most common forms of training. A case is a written account of a
trained reporter of analyst seeking to describe an actual situation.
4. Brainstorming : This is the method of stimulating trainees to
creative thinking This approach developed by Alex Osborn seeks
to reduce inhibiting forces by providing for a maximum of group
participation and a minimum of criticism. A problem is posed and
ideas are invited.
Quantity rather quality is the primary objective. Ideas are
encouraged and criticism of any idea is discouraged. Chain
reactions from idea to idea often develop. Later these ideas are
critically examined. There is no trainer in brainstorming and it has
been found that the introduction of known reports into it will
reduce the originality and practicability of the group contribution.
5. Laboratory Training: Laboratory training adds to
conventional training by providing situations in which the trains
themselves experience through their own interaction some of the
conditions they are talking about. In this way, they more or less
experiment on themselves. Laboratory training is more concerned
about changing individual behaviour and attitude. There are two
methods of laboratory training: simulation and sensitivity

training.
(a) Simulation: An increasing popular technique of management
development is simulation of performance. In this method,
instead of taking participants into the field, the field can be
simulated in the training session itself Simulation is the
presentation of real situation of organisation in the training
session. There are two common simulation methods of training.
They are role-playing and business game.
(i) Role-playing: Role-playing is a laboratory method, which can
be used rather easily as a supplement of conventional training
methods. Its purpose is to increase the trainee‘s skill in dealing
with other people. One of its greatest uses, in connection with
human relations training, but it is also used in sales training as
well. It is spontaneous acting of a realistic situation involving two
or more persons, under classroom situations. Dialogue
spontaneously grows out of the situation, as the trainees assigned
to it develop it.
(ii) Gaming: Gaming has been devised to simulate the problems
of running a company or even a particular department. It has been
used for a variety of training objectives from investment strategy,
collective bargaining techniques to the morale of clerical
personnel. It has been used at all the levels, from the executives
for the production supervisors. Gaming is a laboratory method in
which role-playing exists but its difference is that it focuses
attention on administrative problems, while role-playing tend to
emphasis mostly feeling and tone between people in interaction.
(iii) In-basket training:

In-basket exercise, also known as in-tray training, consists of a
set of business papers which may include e-mail SMSs, reports,
memos, and other items. Now the trainer is asked to priorities the
decisions to be made immediately and the ones that can be
delayed.
(b) Sensitivity Training: Sensitivity training is the most
controversial laboratory training method. Many of its advocates
have an almost religious zeal in their enhancement with the
training group experience. Some of its critics match this favour in
their attacks on the technique.
As a result of criticism and experience, a revised approach, often
described as “team development” training has appeared.
Induction Training
The introduction of the new employee to the job is known as
induction. It is the process by which new employees are
introduced to the practices, policies and purposes of the
organisation.
Induction follows placement and consists of the task of orienting
or introducing the new employee to the company, its policy and
its position in the economy. Induction literally means helping the
worker to get or with his own environment. After an employee is
assigned his job, it is necessary to introduce him to his job
situation, his associates in the job and the overall policies of the
company.
An induction process properly designed should serve the
following purposes:
(a) to help the newcomer to overcome his natural shyness, any
nervousness he may experience in meeting new people in the new
environment;

(b) to integrate the new employee into the organisation and

develop a sense of belonging which is a strong motivational force;
(c) to supply information about the nature for workforce,
conditions of service and welfare facilities.
Management Development Programs
Management development is a part of a large process of
development and learning which a significant area of human
development is. In human society there is a continuous growth
which takes place through a continuous process of exploration,
discovery and acquisition of knowledge. Management
development consists of all the means by which management
learn to improve their behaviour and performance.
Those in the field of organizational behaviour tend to be over
conscious of the needs for management development without –
paying significant attention to ensure that the entire segment of
industrial and business activity is viewed as a development
process and is attuned to the overall objectives of the society.
“Executive or management development is a planned process of
learning and growth designed to bring behavioural change among
the executives.”
It is continuous process of learning. It implies that there will be a
change in knowledge and behavior of the individuals undergoing
development programme. The employee will be able to perform
his present job better and will increase his potential for future
work.
Purpose of Management Development:
The purpose or objective of management development
programmes are discussed below:

1. To sustain better performance of managers throughout their

careers.
2. To improve the existing performance of managers at all levels.
3. To encourage existing managers to increase their capacity to
assume and handle greater responsibility.
4. To enable the organisation to have the availability of required
number of managers with the required skills to meet the present
and anticipated (future) needs of the organisation.
5. To replace elderly executives who have risen from the ranks by
highly competent and academically qualified professionals.
6. To provide opportunities to the executives to fulfil their career
aspirations.
7. To ensure that the managerial resources of the organisation are
utilised optimally.
Management Development Techniques

There are mainly two types of techniques by which managers can
acquire the knowledge, skills and attitudes and make themselves
competent managers. One is through formal training and the other
is through on-the-job experiences.
On-the-job technique is of utmost importance as the real
learning takes place only when the learner uses what he has learnt.
The saying “An ounce of practice is worth tons of theory” is true
whoever said it. But it should also be remembered that class-room
training or pedagogical techniques have also got their own
importance in gaining new knowledge, and learning new
techniques, and broader concepts.

The following are some of the important on-the-job and off-the-

job techniques of management development.
1. Coaching,
2. Job Rotation,
3. Under Study,
4. Multiple Management.
Off-The-Job Techniques:
Because of the fact that on-the-job techniques have their own
limitations, these off-the-job techniques are considered important
to fill those gaps.
The following are some of the important off-the-job techniques:
1. The case study
2. Incident method
3. Role playing
4. In basket method
5. Business game
6. Sensitivity training
7. Simulation
8. Grid training
9. Conferences
10. Lectures
11. Behaviour modelling
12. Transactional Analysis
13. Structured Insight

14. Special Courses
15. Special Meetings
16. Special Readings, and
17. Specific Projects.
Training Process Outsourcing (TPO)
Training Business Process Outsourcing, also referred to as Training
BPO or Learning BPO, is a business strategy, and a component of
the broader outsourcing industry, where a company utilizes an
external supplier for the management of training processes and/or
activities. Training BPO differs from training outsourcing in that
it is more broad in terms of the number of processes managed on
a customer’s behalf, as well as the length and complexity of the
engagement. Training BPO includes comprehensive outsourcing
and selective outsourcing business models.
Benefits of TPO
Training process outsourcing has been growing in popularity due
to its ability to help meet the fluctuating L&D needs of modern
organizations. Process outsourcing provides several valuable
benefits, including the following.
 Reducing costs
 Enhancing internal bandwidth
 Improved scalability
 High-quality learning experiences

MODULE IV
PERFORMANCE APPRAISAL AND
COMPENSATION
The basic purpose of performance appraisal is to facilitate orderly

determination of an employee’s worth to the organization of
which he is a part. However, far determination of the worth of an
employee can take place only by appraising numerous factors.
Performance appraisal also known as merit rating/ merit
evaluation/performance evaluation. Performance appraisal means
a systematic evaluation of personality and performance of each
employee by his supervisor or some other person trained in the
techniques of merit rating. It employs various rating techniques
for comparing individual employees in a group, interms of
personal qualities or deficiencies and the requirement of their
respective jobs.
Definition:
“performance appraisal includes all formal procedure used to
evaluate personalities and contributions and potentials of group
members in a working organization.”..Dale yoder.
“Performance appraisal is a process of evaluating an employee’s
performance of a job in terms of its requirements.”…Scot,
clothier and Spiegel.
Features/ characteristics of Performance appraisal

1. It is a continuous process.

2. It is a systematic examination of an employees’ strength and

weakness in terms of job.
3. It is a scientific study.
4. It is arranged periodically according to a definite plan.
5. It helps in securing information necessary for making objective
and correct decision on employees.
6. It is an impartial rating of an employee excellence.
Objectives of the performance appraisal:
1. To improve the job performance of employees and also to
identify there development potentialities.
2. To diagnose the strength or weakness of individuals so as to
access the area in which training is required.
3. To prevent grievance and un disciplinary activities of the
personnel.
4. To evaluate the success of training programmes
5. To motivate the employee to perform well.
6. To provide coaching, counseling and career planning to
employees.
7. To test the effectiveness of recruitment, selection, placement
and rotation process.
8. To facilitate research in personnel management.
9. To establish harmonious relationship between employer and
employees.

10. To provide valid information for deciding promotion,

transfer, placement, punishment,etc.
Process of performance appraisal:

1. Determining objectives: The first step in the process is
determination of objectives of performance appraisal. Based on
the objectives the remaining stages of process are initiated.
2. Establishing Performance standard or criteria: The standards
are set up for appraising the performance of employees. Job
performance standards are the work requirements that are
expected from an employee on a particular job. these are the
criteria against which to judge results or performance. These
standards may be of physical nature. If work performance cannot
be measured be measured in quantitative terms for instance, in
case of a personal quality then it should be mentioned in the
appraisal form.
The person who are required to do appraisal, number of times,
criteria, etc must be decided in advance.
3. Communicating standards: A after determining the standard, it
should be communicated to the employees. They must be aware
of what is expected out of them. It should also communicate to
evaluators. If there is any objection, it may be recorded. The
standard can be modified in the feedback information obtain from
evaluators and employees.
4. Measuring performance: In this stage actual performance of
employees are measured. With the help of personal observation,
written report, face to face interview, etc information regarding
performance are gathered.
5. Comparison: Actual performance and standards are compared
in order to find out the deviations.
6. Discussion: the results of the appraisal are then communicated

to the employees. The deviations and reasons for deviations are
analyzed and discussed with the employees. The discussion will
enable the employees to know the strength and weakness of his
own.
7. Corrective action: By way of conducting discussion with the
employees, the steps required for improving performance can be
assessed and corrective action can be taken. Coaching,
training,counseling,etc can be conducted to improve the
performance of employees.
Methods of Performance appraisal:
1. Traditional method
 Ranking method
 Paired comparison method
 Grading system
 Graphic scale
 Check list
 Forced distribution
 Critical methods
 field review
 Confidential report
 Free essay method
 Group appraisal
 Comparative evaluation
2. Modern method
 Assessment centre
 Human resource accounting
 Behaviourly anchored rating scales
 Appraisal by MBO
 Psychological appraisal
Essential requirements of performance appraisal:

1. A good atmosphere should exist in the organization to creaqte
confidence and mutual trust among employees.
2. The objectives of the performance appraisal must be definite
and clear.
3. Well defined performance standards should be developed.
Procedures and techniques adopted in appraisal is also
standardized.
4. Proper training should be imparted to appraisers.
5. The appraiser should focus on job related behavior and
performance of employees.
6. Proper documentation of appraisal should be done.
7. There should be feedback regarding the performance and
participation in fixation of standards.
8. The size, number of employees and organization set up must
be considered while designing the appraisal system.
9. There must be post appraisal review.

10. A review committee should be constituted for reviewing and
appeal against appraisal results.
Limitation of Performance appraisal
1. There is a possibility of inconsistent ratings.
2. An evaluator may appraise an employee based on the general
impression i.e., Halo effect.
3. There is a possibility of personal bias
4. In order to avoid the possibility of giving a high or low rate,
the evaluators may opt for average rating
5. Different standards are followed by different supervisors for
evaluation.
6. There is a lack of training in appraisal techniques which reduce
reliability.
7. Due to lack of knowledge and skills, the raters may fail to
evaluate performance accurately.
8. There is a resistance from trade unions.
9. There is a possibility of similarity errors.
10. The evaluators have varied range of rating.
Problems of performance appraisal

Since performance appraisal is conducted by human beings, it is
subjected to a number of errors, biases, weaknesses and pitfalls.

Some of these are discussed below.

1. The halo effect:
The halo effect is introduced when an overall impression of an
individual is judged on the basis of a single trait. A high rating on
one trait leads automatically to high rating on all other trait. Also,
a very high rating may be given to protect an employee for whom
there may be personal sympathy.
2. Constant error:
This error is a reflection on the trait of the rater. Some raters are,
by nature, too liberal, others too strict and some tend towards
rating most people in the middle.
3. Recency of events:
There is a tendency of many evaluators to give much more weight
to the recent behaviour of the candidate than the past behaviour.
This is based on the reflection that the future trend is established
by the mere recent behaviour.
4. The central tendency:

It is the most commonly found error. It is the tendency of most
raters to give average ratings to all or the center of the scale. This
may be due to the fact that a very high rating or a very low rating
could invite questions, criticisms or explanations.
Accordingly, an average rating is safer. It could also be due to the
fact that the rather lacks sufficient knowledge about the applicant
and hence, does not want to commit himself one way to another.

5. Errors of variable standards:

It is quite possible that organisations follow different standards of
performance. Some divisional heads may require much higher
quality of performance than others.
6. Other miscellaneous biases:
There may be some built - in biases in the minds of the rater,
based upon his own perception of things, people and
performances. A person may be rated higher because he is a 'nice'
person or because of his seniority.
METHODS OF PERFORMANCE APPRAISAL

1. Rating Scales: Rating scales consists of several numerical
scales representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores
are computed and final conclusions are derived. Advantages –
Adaptability, easy to use, low cost, every type of job can be
evaluated, large number of employees covered, no formal training
required. Disadvantages – Rater’s biases
2. Checklist: Under this method, checklist of statements of traits
of employee in the form of Yes or No based questions is prepared.
Here the rater only does the reporting or checking and HR
department does the actual evaluation. Advantages – economy,
ease of administration, limited training required, standardization.
Disadvantages – Raters biases, use of improper weighs by HR,
does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in
the blocks of two or more are given and the rater indicates which
statement is true or false. The rater is forced to make a choice. HR
department does actual assessment. Advantages – Absence of
personal biases because of forced choice. Disadvantages –

Statements may be wrongly framed.
4. Forced Distribution Method: here employees are clustered
around a high point on a rating scale. Rater is compelled to
distribute the employees on all points on the scale. It is assumed
that the performance is conformed to normal distribution.
5. Critical Incidents Method: The approach is focused on
certain critical behaviors of employee that makes all the
difference in the performance. Supervisors as and when they
occur record such incidents.
Advantages – Evaluations are based on actual job behaviors,
ratings are supported by descriptions, feedback is easy, reduces
recency biases, chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized, forgetting
incidents, overly close supervision; feedback may be too much
and may appear to be punishment.
6. Behaviorally Anchored Rating Scales: statements of
effective and ineffective behaviors determine the points. They are
said to be behaviorally anchored. The rater is supposed to say,
which behavior describes the employee performance.
Advantages – helps overcome rating errors.
Disadvantages – Suffers from distortions inherent in most rating
techniques.
7. Field Review Method: This is an appraisal done by someone
outside employees’ own department usually from corporate or
HR department.

Advantages – Useful for managerial level promotions, when

comparable information is needed,
Disadvantages – Outsider is generally not familiar with
employees work environment, Observation of actual behaviors
not possible.
8. Performance Tests & Observations: This is based on the test
of knowledge or skills. The tests may be written or an actual
presentation of skills. Tests must be reliable and validated to be
useful.
Advantage – Tests may be apt to measure potential more than
actual performance.
Disadvantages – Tests may suffer if costs of test development or
administration are high.
9. Confidential Records: Mostly used by government
departments, however its application in industry is not ruled out.
Here the report is given in the form of Annual Confidentiality
Report (ACR) and may record ratings with respect to following
items; attendance, self expression, team work, leadership,
initiative, technical ability, reasoning ability, originality and
resourcefulness etc. The system is highly secretive and
confidential. Feedback to the assessee is given only in case of an
adverse entry. Disadvantage is that it is highly subjective and
ratings can be manipulated because the evaluations are linked to
HR actions like promotions etc.
10. Essay Method: In this method the rater writes down the
employee description in detail within a number of broad
categories like, overall impression of performance,
promoteability of employee, existing capabilities and
qualifications of performing jobs, strengths and weaknesses and

training needs of the employee. Advantage – It is extremely

useful in filing information gaps about the employees that often
occur in a better-structured checklist. Disadvantages – It its
highly dependent upon the writing skills of rater and most of them
are not good writers. They may get confused success depends on
the memory power of raters.
11. Cost Accounting Method: Here performance is evaluated
from the monetary returns yields to his or her organization. Cost
to keep employee, and benefit the organization derives is
ascertained.
Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired
Comparisons): These are collection of different methods that
compare performance with that of other co-workers. The usual
techniques used may be ranking methods and paired comparison
method.
 Ranking Methods: Superior ranks his worker based on

merit, from best to worst. However how best and why best are
not elaborated in this method. It is easy to administer and
explanation.
 Paired Comparison Methods: In this method each

employee is rated with another employee in the form of pairs.
The number of comparisons may be calculated with the help
of a formula as under.
N x (N-1) / 2
Modern Methods
1. Management By Objectives: It means management by
objectives and the performance is rated against the achievement
of objectives stated by the management. MBO process goes as

under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the

employee
 Establish new goals and new strategies for goals not

achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay
may result in setting short-term goals rather than important and
long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed
to assess employees potential for future performance rather than
the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review
of other evaluations. It is more focused on employees emotional,
intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and
may be useful for bright young members who may have
considerable potential. However quality of these appraisals
largely depend upon the skills of psychologists who perform the
evaluation.
3. Assessment Centers: This technique was first developed in
USA and UK in 1943. An assessment center is a central location
where managers may come together to have their participation in
job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select
exercises or work samples. Assessees are requested to participate

in in-basket exercises, work groups, computer simulations, role
playing and other similar activities which require same attributes
for successful performance in actual job. The characteristics
assessed in assessment center can be assertiveness, persuasive
ability, communicating ability, planning and organizational
ability, self confidence, resistance to stress, energy level, decision
making, sensitivity to feelings, administrative ability, creativity
and mental alertness etc. Disadvantages – Costs of employees
traveling and lodging, psychologists, ratings strongly influenced
by assessee’s inter-personal skills. Solid performers may feel
suffocated in simulated situations. Those who are not selected for
this also may get affected.
Advantages – well-conducted assessment center can achieve
better forecasts of future performance and progress than other
methods of appraisals. Also reliability, content validity and
predictive ability are said to be high in assessment centers. The
tests also make sure that the wrong people are not hired or
promoted. Finally it clearly defines the criteria for selection and
promotion.
4. 360-Degree Feedback: It is a technique which is systematic
collection of performance data on an individual group, derived
from a number of stakeholders like immediate supervisors, team
members, customers, peers and self. In fact anyone who has
useful information on how an employee does a job may be one of
the appraisers. This technique is highly useful in terms of broader
perspective, greater self-development and multi-source feedback
is useful. 360-degree appraisals are useful to measure inter-
personal skills, customer satisfaction and team building skills.
However on

the negative side, receiving feedback from multiple sources can

be intimidating, threatening etc. Multiple raters may be less adept
at providing balanced and objective feedback.
COMPENSATION
Compensation of employees for their services is an important
responsibility of Human resource management. Every
organization must offer good wages and fringe benefits to attract
and retain talented employees with the organization. If at any
time, the wages offered by the firm are not competitive as
compared to other firms, the efficient workers may leave the firm.
Therefore, the workers must be remunerated adequately for their
services. Compensation to workers will vary depending upon the
nature of job, skills required, risk involved nature of working
conditioning ,paying capacity of the employer, bargaining power
of the trade union, wages and benefits offered by the other units
in the region or industry, etc.
Concept of Compensation
Compensation refers to a wide range of financial and non-
financial rewards to employees for their services rendered to the
organization. It is paid in the form of wages,salaries and
employee benefits such as paid vacations, insurance,maternity
leave,free travel facility, retirement benefits, etc.
Types of compensation:
1. Base compensation:
Base compensation involves monetary benefits in the form of
wages and salaries. The term ‘wage’ is used to denote
remuneration to workers and the term ‘salary’ is usually defined
to mean compensation to office employees, foremen, managers
and professional and technical staff.
2. Supplementary compensation:
Supplementary compensation involves ‘fringe benefits’ offered
through several employee services and benefits such as housing,
subsidized food, medical aid, crèche,etc. it is also known as non-
wage payments/service programmes/employee benefits. It helps
to retain the employees on a long term basis.
Wage and salary administration:
Wages and salaries represent a substantial part of total costs in
most of the organization. Wage and salary administration is
essentially the systematic approach to the problem of ensuring
that employees are paid in a logical, equitable and fair manner.
The most important objective of any pay system is fairness and
equity. The term equity has three dimensions:
1. Internal equity: This refers to the pay corresponding to
difficulty level of the job assigned to an employee. More difficult
jobs should be paid more.
2. External equity: External equity ensures that an employee is
compensated equally in comparison to similar jobs in the labor
market.
3. Individual equity: Individual equity highlights equal pay for
equal jobs, i.e. each individual pay is fair in comparison to others
doing the same/similar job.
Other objectives:
1. To acquire qualified competent personnel
2. To retain the present employees
3. To ensure desired behavior from employees.
4. To reduce labour cost

5. To simplify collective bargaining procedures and negotiations.
6. To promote organizational feasibility
7. To comply with wage legislations.
8. It helps in motivating employees for better performance.
Factors affecting wages/compensation:
1. Demand and supply of labour: wage is a compensation or
price for the services rendered by a worker. Wages are based on
the demand and supply of labour force available in the market. If
there is huge supply of the labour, the wages will increase ,on the
other hand, if there is a scarcity of labour force, wage will
increase.
2. Ability to pay: employer’s ability to pay is an important factor
affecting wages not only for the individual firm, but also for the
entire industry. This depends on the financial position and
profitability of the firm.
3. Cost of living: another important factor affecting te wage is
cost of living of wages. This tend to vary money wage depending
upon the variation in the cost of living index following rise or fall
in the general price level and consumer index.
4. Productivity of workers: to the achieve the best result from
the worker and to motivate him to increase his efficiency, wages
have to be productivity based. Productivity is the key factor in the
operations of a company.
5. Labour unions: organized labour able ensures better wages
than the unorganized one. Higher wages may have to be paid by
the firm to its workers under the pressure of trade unions. If trade
union fail in their attempt to raise the wages and other allowance
through collective bargaining they might resort too strike, this
exerts influence on employer to concede at leastpartial demands
of labour union.
6. Government: several laws have been enacted by the
government to protect the working class. Laws on minimum
wages, hours of work, equal pay for equal work, payment of
dearness allowance, bonus, etc. have been enacted to bring about
measure of fairness in compensating the working class. Thus, the
laws enacted and labour policies framed by the government have
an important influence on wages and salaries paid by the
employers.
7. Prevailing wage rates: wages in a firm are influenced by the
general wage level or the wages paid by the similar occupations
in the industry, region and economy as a whole. External
alignment of wages is essential because if wages paid by the firm
are lower than those paid by the other firms, the firm will not be
able to attract and retain efficient employees.
8. Other factors:
 Worker’s capacity.
 Educational qualification.
 Work experience.
 Hazards in work.
 Promotion possibilities.
 Stability of employment.
 Demand for special skills.

 Profits earned by the organization.
Elements of compensation:
Workers are compensated in the form of following benefits:
 Monthly wage and salary or total pay including wage,

house rent allowance, dearness allowance and city
compensatory allowance.
 Bonus at the end of the year
 Economic benefits such as paid holidays leave

travelconcessions.
 Contribution towards insurance premium
 Contribution towards retirement benefits such as

employee provident fund
 Transport and medical facilities
Dearness Allowance
The Dearness Allowance (DA) is a cost of living adjustment
allowance paid to Government employees, Public sector
employees (PSU)and pensioners in Pakistan, Bangladesh and
India. Dearness Allowance is calculated as a percentage of an
Indian citizen's basic salary to mitigate the impact of inflation on
people. Indian citizens may receive a basic salary or pension that
is then supplemented by housing or a dearness allowance, or both.
The guidelines that govern the DA vary according to where one
lives (for example, whether rural or urban).

Bonus:
A bonus is an additional compensation given to an employee
above his/her normal wage. A bonus can be used as a reward for
achieving specific goals set by the company, or for dedication to
the company. .
Fringe benefits
Supplementary compensation involves ‘fringe benefits’ offered
through several employee services and benefits such as housing,
subsidized food, medical aid, crèche,etc. it is also known as non-
wage payments/service programmes/employee benefits. It helps
to retain the employees on a long term basis.
Principles of Wages and Salary Administration

Since the issue of wage and salary determination has always
enjoying the major consideration for any organization, it should
be develop and maintain based on sound principles , some of them
are narrated below, attempt should be made to incorporate them
as far as possible while designing the compensation system.
1) There should be a definite plan and system to ensure that
differences in pay for jobs are based upon variations in job
requirements, means maintaining equity in the distribution of
wages and salaries in the organization.
2) Maintaining competitiveness in the wage market means the
general level of wage and salary should be reasonably in line with
that prevailing in the market.
3) Matching employees’ expectations and it should avoid
unjustified discrimination by providing equal pay for equal work.

4) Reinforcing positive employee behavior and contribution to

the organization, differences in the compensation package should
be based on contribution, productivity, job performance,
achievement etc.
5) Devising a system that is the most efficient for the
organization, as far as possible it must eliminate any
discrepancies or exploitation of the employees.
6) The compensation system should formulate and define rules
and regulations for determining, changing, adjusting wages in the
organization.
7) The compensation package must ensure fairness, should
maintain harmonious relationship between the employee and
employer.
8) Compensation system should be flexible enough so that future
changes can be incorporated.
9) The wage and salary administration should take care of and
comply all the rules and regulations laid down by the legislator
for protecting the employees’ interest.
10) Optimization of management and employee interests.

MODULE V
OVERVIEW OF HRM TRENDS AND CHALLENGES
Future Challenges before the HR Managers

Because of continuous changing socio-economic, technological
and political conditions, the human resource managers of the
future shall have to face more problems in the management of
labour. The human resource managers of today may find
themselves obsolete in the future due to changes in environment
if they do not update themselves some of the important challenges
which might be faced by the managers in the management of
people in business and industry are discussed below:
1. Increasing Size of Workforce: The size of organisations is
increasing. A large number of multinational organisations have
grown over the years. The number of people working in the
organisation has also increased. The management of increased
workforce might create new problems and challenges as the
workers are becoming more conscious of their rights.
2. Increase in Education Level: The governments of various
countries are taking steps to eradicate illiteracy and increase the
education level of their citizens. Educated consumers and workers
will create very tough task for the future managers.
3. Technological Advances: With the changes coming in the
wake of advanced technology, new jobs are created and many old
jobs become redundant. There is a general apprehension of
immediate unemployment. In the competitive world of today,
industry cannot hope to survive for long with old technology. The
problem, of unemployment resulting from modernisation will be

solved by properly assessing manpower needs and training of
redundant employees in alternate skills.
4. Changes in Political Environment: There may be greater
Government‘s interference in business to safeguard the interests
of workers, consumers and the public at large. Government‘s
participation in trade, commerce and industry will also pose many
challenges before management. The Government may restrict the
scope of private sector in certain areas in public interest. It does
not mean chances of co-operation between the Government and
private sector are ruled out. In fact, there will be more and more
joint sector enterprises.
5. Increasing Aspirations of Employees: Considerable changes
have been noted in the worker of today in comparison to his
counterpart of 1950s. The workers are becoming more aware of
their higher level needs and this awareness would intensify
further in the future workers.
6. Changing Psychosocial System: In future, organisations will
be required to make use of advanced technology in accomplishing
their goals while satisfying human needs. In the traditional
bureaucratic model, the organisations were designed to achieve
technical functions with a little consideration given to the
psychosocial system. But future management would be required
to ensure effective participation of lower levels in the
management of the organisation system.
7. Computerised Information System: In the past, the
automation of manufacturing processes had a major effect upon
the systems of production, storage, handling and packaging, etc.
More recently, there has been and in the future there will be the
impact of revolutionary computerised information system on
management. This revolutionary development would cover two

primary areas of personnel management which are as follows : (a)
The use of electronic computers for the collection and processing
of data, and (b) The direct application of computers in the
managerial decision making process.
8. Mobility of Professional Personnel: Organisations will
expand the use of “boundary agents” whose primary function will
be achieving coordination with the environment. One interesting
fact will be an increase in the mobility of various managerial and
professional personnel between organisations. As individuals
develop greater technical and professional expertise, their
services will be in greater demand by other organisations in the
environment.
9. Changes in Legal Environment: Many changes are taking
place in the legal framework within which the industrial relations
systems in the country are now functioning. It is the duty of the
human resource or personnel executive to be aware of these
changes and to bring about necessary adjustments within the
organisations so that greater utilisation of human resources can
be achieved. This, indeed, is and would remain a major challenge
for the personnel executive.
10. Management of Human Relations: On the ‘industrial
relations’ front, things are not showing much improvement even
after so many efforts by the government in this direction. Though
a large number of factors are responsible for industrial unrest but
a very significant cause is the growth of multi unions in industrial
complexes having different political affiliations. Under the
present conditions, it appears that inter-union rivalries would
grow more in the coming years and might create more problems
in the industry. Management of human relations in the future will
be more complicated than it is today. Many of the new generation
of employees will be more difficult to motivate than their
predecessors. This will be in part the result of a change in value

systems coupled with rising educational levels.
STRATEGIC HUMAN RESOURCE MANAGEMENT
APPROACH
With increase in technology and knowledge base industries and
as a result of global competition, Human Resource Management
is assuming more critical role today. Its major accomplishment is
aligning individual goals and objectives with corporate goals and
objectives. Strategic HRM focuses on actions that differentiate
the organization from its competitors and aims to make long term
impact on the success of organization.
Differences between Traditional HRM And Strategic HRM
Traditional Human Resource Management:
1. It focuses on employee relations, to partnership with internal
and external groups.
2. Transformation in nature, in that it helps the people and the
organisation to adapt, learns and act quickly.
3. Is proactive and consider various time frames in a flexible
manner.
Strategic Human Resource Management:
1. It realises that people can made or break an organisation
because all decisions regarding finance, marketing, operations or
technology are made by an organisation’s people.
2. It compels people at all levels to focus more on strategic issues
rather than operational issues.

3. It believes that there is no best way to manage people in any

given organisation.
E-HUMAN RESOURCE MANAGEMENT

E-HRM is the relatively new term for this IT supported HRM,
especially through the use of web technology. The major goals of
e-HRM are mainly to improve HR’s administrative efficiency/to
achieve cost reduction. Next to these goals, international
companies seem to use the introduction of e-HRM to Standardize/
harmonize HR policies and processes. Though e- HRM hardly
helped to improve employee competences, but resulted in cost
reduction and a reduction of the administrative burden. There is a
fundamental difference between HRIS and e-HR in that basically
HRIS are directed towards the HR department itself. Users of
these systems are mainly HR staff. These types of systems aim to
improve the processes within the HR departments itself, although
in order to improve the service towards the business. With e-HR,
the target group is not the HR staff but people outside this
department: the employees and management. HRM services are
being offered through an intranet for use by employees.
The difference between HRIS and e-HR can be identified as the
switch from the automation of HR services towards technological
support of information on HR services. e-HRM is a way of
implementing HR strategies, policies, and practices in
organizations through a conscious and directed support of and/or
with the full use of web-technology-based channels. The word
‘implementing’ in this context has a broad meaning, such as
making something work, putting something into practice, or
having something realized. e-HRM, therefore, is a concept - a
way of ‘doing’ HRM. The e-HRM business solution is designed
for human resources professionals and executive managers who
need support to manage the work force, monitor changes and
gather the information needed in decision-making. At the same
time it enables all employees to participate in the process and

keep track of relevant information.
The e-HRM business solution excels in:
 Modularity
 The solution can be accessed and used in a web browser
 Security of data, protected levels of access to individual

modules, records documents and their component parts
 Parametric and customizability
 Access to archived records and documents
 User-friendly interface
 Connectivity with the client’s existing information system

(payroll accounting, ERP, attendance registration, document
systems…) Multi-language support
Advantages of the e-HRM business solution:
 Gradual implementation
 Adaptability to any client
 Collection of information as the basis for strategic decision-

making
 Integral support for the management of human resources and

all other basic and support processes within the company
 Prompt insight into reporting and analysis
 A more dynamic workflow in the business process,

productivity and employee satisfaction
 A decisive step towards a paperless office
 Lower business costs
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Human Resource Information System is an important element in
Human Resource development. It is a system to maintain, collect,
and analyze data relating to Human Resources of the
organization. It helps managers in decision-making in respect of
promotion, wage fixing, recruitment, training and development.
Human Resource Information System acts as a decision support
system. The inputs of Human Resource Information System
include the information relating to employees, their abilities,
qualifications, potentialities, creative instincts, age, pay scales,
various jobs in the organization, their required skills and
qualifications to do them, the number of employees and
executives manning various positions, organizational objectives,
policies and procedures etc.
Major reasons for the present emphasis on manpower planning
include the following:
1. Employment-Unemployment Situation:
Though in general the number of educated unemployed is on the
rise, there is an acute shortage of a variety of skills. This
emphasizes the need for more effective recruitment and retaining
people.
2. Technological Change:
The changes in production technologies, marketing methods and
management techniques have been extensive and rapid. Their
effect has been profound on job contents and contexts. These

changes can cause problems relating to redundancies, retraining
and redeployment. All these contribute to the need to plan Human
Resource needs intensively and systematically.
3. Organizational Change:
In a turbulent environment marked by cyclical fluctuations and
discontinuities, the nature and pace of changes in organizational
environment, activities and structures affect Human Resource
requirements and require strategic consideration.
4. Demographic Changes:
The changing profile of the work force in terms of age, sex,
literacy, technical inputs and social background have implications
for Human Resource planning.
5. Legislative Controls:
It is easy to increase but difficult to reduce the numbers employed
because of recent changes in labour law relating to lay-offs and
closures. Those responsible for managing Human Resources must
look far ahead and attempt to foresee Human Resource position.
Now legislation makes it difficult to reduce the size of an
organization quickly and cheaply.
6. Impact of Pressure Groups :

Pressure groups such as unions, politicians have been raising
contradictory pressures on enterprise management in areas such
as internal recruitment and promotions, preference to
employees‘children, displaced persons, sons of soil, etc.

GREEN HUMAN RESOURCES MANAGEMENT (GHRM)

GHRM is a new concept and is becoming popular all over the
world. It has got different meanings to different people. There is
no comprehensive definition of GHRM.
It refers to making efforts to improve energy efficiency or reduce
the pollution produced by our home, business, and general living
habits.
The main purpose of going green is to reduce the potential
negative impact that energy consumption and pollution can have
on the environment.
Green Human Resources Management (GHRM) can be defined
as a set of policies, practices, and systems that stimulate the green
behavior of a company’s employees in order to create an
environmentally sensitive, resource-efficient, and socially
responsible organization.
Benefits/Advantages of Green HRM
Green HRM involves undertaking environment-friendly HR
initiatives resulting in greater efficiency, lower costs and better
employee engagement and retention, which in turn, help
organizations to reduce employee carbon footprints by electronic
filing, car sharing, job sharing, teleconferencing, and virtual
interviews, recycling, telecommuting, online recruitment and
training, energy-efficient office spaces, etc.
The Green Human Resource Management plays an important role
in the industry to promote the environment-related issues.
Organizations must formulate HR policies and practices, train
people to increase awareness about the environment, and
implement laws related to environmental protection.
The Green HRM may also help the employers, manufacturers in

building brand image and reputation.
Organizations need to conduct an environmental audit, thus
changing the organizational culture, thinking about waste
management, pollution, and helping the society and its people,
those are getting affected by pollution.
It will also make employees and society members aware of the
utilization of natural resources more economically and encourage
eco-friendly products.
Experts have identified the benefits of GHRM, which are
mentioned below:
 Helping companies to bring down costs without losing their

talent.
 Organizations have huge growth opportunities by being green

and creating a new friendly environment, which helps in
enormous operational savings by reducing their carbon
footprint.
 It helps in achieving higher employee job satisfaction and

commitment, which leads to higher productivity and
sustainability.
 Create a culture of having concern for the wellbeing and

health of fellow workers.
 Improvement in the retention rate of the employee.
 Improved public image. Any time a firm adds a green

initiative to its workplace, it can use the event to generate
positive public relations. Organizations can promote
environmental contributions to the media through press
releases to earn the attention of potential customers and

possible new sales.
 Promote employee morale.
 Improvement in attracting better employees. Dolan’s (1997)

study of USA MBA students found that most of the graduates
would take a lower salary to work for environmentally
responsible organizations.
 Reduction in the environmental impact of the company.
 Improved competitiveness and increased overall

performance.
 Reduction of utility costs significantly. Even small businesses

can significantly reduce their utility costs by using
technologies that are energy-efficient and less wasteful.
 Rebates and Tax Benefits. Going green is easier with the

assistance of governments, local municipalities, Water supply
authority, and electric companies that offer tax incentives and
rebates.
 Increased business opportunities. Some government agencies,

commercial businesses, and nonprofit institutions mandate
that only businesses that meet specific green standards can bid
on their contracts. Some also mandate that their purchasing
departments only buy green products or use products and
services sold by companies that meet certain green standards.
 Reduction of environmental damage. Encouraging

employees, through training and compensation, to find ways
to reduce the use of environmentally damaging materials.

Disadvantages of GHRM
While environmentally friendly living is a positive ideal, there are
several possible disadvantages of going green. Gregory Hamel
has made a review of the disadvantages if an organization is going
green.
The major disadvantages are listed below;
Initial costs : Perhaps the greatest disadvantage of going green is
that it often requires a high initial cost.
Inadequate savings: The aim of going green in many cases, such
as building an energy-efficient home or purchasing a hybrid
vehicle is to reduce environmental impact while saving money in
the long term.
Increased capital outlays: Some green conversions require an
initial cash outlay that decreases the firm’s bottom-line
performance while the investment is paying for itself. This can
decrease the earnings or annual profits of a firm.
Uneven competition: In the business world, going green can be
an attractive goal to gain goodwill and consumer support, but
unless green improvements are economically viable, it can put a
business at a competitive disadvantage
Marginal impact: In the business world, going green can be an
attractive goal to gain goodwill and consumer support, but unless
green improvements are economically viable, it can put a
business at a competitive disadvantage. The theory is that if
everyone were to go green, it would have a significant and
noticeable impact, but not everyone can be convinced to go green,
and many believe that doing so has no real impact outside of the
economics. This makes going green a personal choice for many

Employee apathy and reluctance: Many employees feel that it

is not their responsibility to protect the environment while they
are at work. But the newly educated workforce is emphasizing on
environmental management consciousness when they choose
their employers.
Green HRM Practices

Researchers suggest a few Green HRM practices, which are
mentioned below:
 Encouraging employees, through training and compensation,

is to find ways to reduce the use of environmentally damaging
chemicals in their products.
 Assisting employees in identifying ways to recycle products
that can be used for playgrounds for children who don’t have
access to healthy places to play.
 Designing a company’s HRM system is to reflect equity,
development, and wellbeing, thus contributing to the long-
term health and sustainability of both internal (employees)
and external communities.
 Emphasizing long-term employment security is to avoid
disruption for employees, their families, and their
communities.
 Use of job portals of companies for recruitment and custom
of telephone, internet, and video interviews, which can lessen
the travel requirements of the candidate and affecting the
reduction in paperwork.
 Green rewards to employees can be provided by companies

in the arrangement of the nature-friendly workplace and
lifestyle benefits through providing carbon credit equalizers,
free bicycles, and pollution-free vehicles for transportation to
the workplace to engage employees in green agenda.
 Talented, skilled, and experienced employees are

environmentally conscious now, and they always look for
self-actualization to be committed to their work. Green HR
can create this commitment by following green values and
practices.
 Green actions can occur with minimum use of paper and

printed materials in recruitment, training and development,
and performance appraisal.
 A company can create a green business environment by

reducing the use of printed materials, increased ‘recycling,
using eco-friendly grocery and lunch bags, and prohibiting
the use of bottled water, plastic in the workplace.
 Luminous light bulbs and other energy-saving green devices

can be used in the workplace.
 Companies can inspire their employees to change their travel

and transportation ways through reducing official car trips,
using public transport for business travel, carpooling,
providing interest-free loans to purchase hybrid cars, and
cycling or walking to work.
 Conduct business meetings and conferences through the

internet, telephone, and video conferencing wherever possible
to reduce business travel.
 Provide flexible work opportunities to employees in telework

or work from home by using emails and company portals
through intranet and internet.
 Wellness programs for employees, their family members, and

general people can be arranged to focus on physical fitness,

proper nutrition, and a healthy lifestyle. As an important green
objective, environmental management can be included in the
mission statement of the company as a part of their social
responsibility. Organizations can arrange cleanliness and
waste management initiative in the workplaces and
surrounding society to cause awareness about green issues.
 Encourage the employee to turn off lights, computers, and

printers after work hours and on weekends for further energy
reductions.
 Inspire employees to place computers and printers in energy-

saving settings when they will be away for a while.
 Turn off office lights while attending meetings and at night

and over the weekend. Turn lights off in restrooms,
conference rooms, libraries, and so forth when the room is not
in use.
 Work with IT to switch to laptops over desktop computers

because Laptops consume up to 90% less power.
 Arrange an air conditioning system with discretion.
 Purchase large or refillable containers of creamer, sugar, salt,

pepper, and butter instead of individual containers.
 Arrange green-themed games to promote environmentally

friendly behavior and staff togetherness.
 Provide green promotion, which includes loan discounts on

fuel-efficient cars and energy-saving home improvements,
discounts at local green merchants.

HUMAN RESOURCE AUDIT

Human Resource audit is a systematic survey and analysis of
different Human Resource Development functions with a
summarized statements of findings and recommendations for
correction of deficiencies.
Main objectives of Human Resource audit:-
 To determine the effectiveness of management

programmes for HRD
 To analyze the factors involved in Human Resource

Development
A thoroughly conducted HR Audit will answer questions like:
What are the current employee policies?
Are these policies accessible?
Are these policies actually applied?
Are policies in compliance with legal aspects of
employment?
Do we have procedures to update policies regularly?
Are we taking adequate measures to provide training at
each level?
Benefits of HR Audit
 A well conducted HR Audit can prove to be very beneficial

for the company in terms of identifying gaps between the
current working and standard working of HR department,
thereby streamlining processes. The Audit system also
inculcates a greater sense of responsibility among HR

professionals as they feel motivated to give good results
during the Audit.
 An HR Audit if performed properly gives clarity on HR duties

and responsibilities by highlighting areas of improvements
and suggesting efficient methods.HR Audit helps in knowing
the competitive HR trends in industry and fill the gaps in the
company’s system.
 It can help the company in cost reduction by implementation

of better procedures, bringing improvement in employee
productivity and adapting Measures to fill performance gaps.
 The Human Resource Information System which has become

an integral part of Human Resource system is also evaluated
during HR Audit and
 Suggested changes to it can make it more efficient and

employee friendly.
Audit Process
The HR audit process involves the following steps:
1. Pre-audit information: A complete review of the company’s
policies, manuals and procedures followed
2. On-site review: Questionnaires, interviews, observation,
informal discussions, surveys, or a combination of these methods
to get relevant information from top management, employees and
company environment 3. Records review: Review of current HR
records, employees’ files, employee absenteeism and turnover
statistics, notices, compensation claims, performance
assessments, etc.

4. Audit report: Compilation of report with appropriate

conclusions and recommendations and highlighting the strengths
and weaknesses of the HR function along with the necessary
improvements as required.
Methods of HR Audit
1. Individual interview method: In this method top management
is asked questions about the HR policies and procedures in the
company
2. Group interview method: This method involves top
management and senior HR professionals interview to guage
relevant information for the Audit
3. Workshop method: This method involves conducting a
workshop to know about the HR system in an interactive manner
and also suggesting changes to it.
4. Questionnaire method: Questionnaire is distributed to
employees to know about their perceptions about the HR system
and get an understanding that if the procedures and rules followed
by the company are fair,
5. Observation: Observation of the day to day working and
checking if rules and regulations are being followed.
WORK-LIFE BALANCE
Work-Life Balance does not have a universal definition but many
researchers have tried to figure out its meaning. In a layman’s
language one can say that it means a balance between WORK and
LIFE of any working individual irrespective of the person’s
gender, level of employment, organization or industry. Precisely,
one can also say that it refers to the balance between an
employer’s personal and professional life. Personal Life includes
friends, family and Professional Life includes work in the office.

Another definition could be “how an individual manages his/her
time by focusing on both on-the-job and private time to facilitate
health and personal satisfaction without negatively impacting
productivity, personal and professional success.” These days it is
a very important concept because people are working
continuously and hence expect some leniency from the company.
Some say it is the ability to experience a sense of control and to
stay productive and competitive at work while maintaining a
happy, healthy home life with sufficient leisure. It’s attaining
focus and awareness, despite the tasks and activities competing
for your time and attention. Also, work-life balance entails having
some breathing space for oneself each day, feeling a sense of
accomplishment, while not being consumed by work and having
an enjoyable domestic life without short-changing career
obligations. And it’s rooted in whatever fulfillment means to
someone within 24-hour days, seven-day weeks. There is no
perfect, one size fits all, balance one should strive for. The best
work-life balance is different because of different priorities and
lives that everyone has. It does not mean an equal balance. It may
vary over time though. Various researches have shown that
Achievement and Enjoyment are the two most important aspects
of Work-Life Balance. It means pride, satisfaction, happiness,
celebration, love, a sense of wellbeing etc. Therefore, according
to many, another good definition for Work Life Balance would
be, “Meaningful daily Achievement and Enjoyment in Work,
Family, Friends and Self.”
The Six Components of Work Life Balance

Self-Management refers to sufficiently managing one’s self
which can be challenging, particularly in getting proper sleep,
exercise, and nutrition. It is the recognition which tells us that

effectively using the spaces in our lives is vital, and that available
resources, time, and life are finite.
 Time Management or more appropriately said effective time

management involves making optimal use of your day and the
supporting resources that can be summoned – one can keep
pace when the resources match the challenges. Time
management is enhanced through appropriate goals and
discerning what is more important and urgent, versus
important or urgent. It entails knowing what you do best and
when, and assembling the appropriate tools to accomplish
specific tasks.
 Stress Management refers to managing the stressful

situations. Since, societies tend to become more complex over
time therefore these days stress on an individual is inevitable.
More people, distractions, and noise require each of us to
become adept at maintaining tranquility and working
ourselves out of pressure-filled situations. Most forms of
multitasking ultimately increase our stress, versus focusing on
one thing at a time.
 Change Management refers to the continuous adaptation of

new methods and re-adapting others is vital to a successful
career and a happy home life. Effective change management
involves making periodic and concerted efforts to ensure that
the volume and rate of change at work and at home does not
overwhelm or defeat you. In our fast-paced world, change is
virtually the only constant. Technology Management refers
to effectively managing technology which means ensuring
that technology serves you, rather than abuses you.
Technology has always been with us, since the first walking
stick, flint, spear, and wheel. Now, the rate of change is
accelerating, brought on by vendors seeking expanding

market share. Often there is no choice but to keep up with the

technology, but one must rule technology, not vice versa.
 Leisure Management is the most overlooked part of the

work-life balance supporting disciplines, it acknowledges the
importance of rest and relaxation- that one can’t shortchange
leisure, and that “time off” is a vital component of the human
experience. Curiously, too much of the same leisure activity,
however enjoyable, can lead to monotony. Thus, effective
leisure management requires varying one’s activities.”
MANAGING DIVERSITY
In today’s era, all organizations are working towards the
management of diversity at respective workplaces to enforce a
sense of belonging among employees so as to achieve the
objectives set by them. Incorporating diversity practices in a
workplace can include recruiting from diverse talent sources to
make the company open to employees from various backgrounds.
Diversity may also be infused into advertising practices to ensure
products and services are targeted to all consumers who represent
the target market, whether through print, online, television or
radio. Today, as workplaces embrace the idea of diversity, they
often tend to realize benefits that help in improvement of their
companies, from new ideas to increased international exposures
and opportunities.
Diversity adds varied ideas and perspectives to a workplace. A
possible equation of the company should be as follows:
Respecting Individuals + Valuing & Respecting Differences +
Focusing on Business Goals as a team = Diversity
Advantages of a diverse workforce:

Creativity increases when people with different ways of solving

difficult problems work together towards a common objective.
The heterogeneous groups are cross-fertilizing one another within
the organization, bringing in more creative ideas and solution
techniques. More the ideas obtained from different people, more
likely the business develops a workable answer.
Productivity increases exponentially when peopleof various
cultures work together towards a single inspiring goal. Employers
can offer more solutions to customers because of new ideas and
processes brought into the organization. Workplace diversity
increases employee morale and causes employees to desire to
work more effectively and efficiently.
New attitudes are brought to the business table by people from
diverse cultures. For instance, Americans may want to consider
adopting the perspective other cultures have about time. Our
culture believes that “time is money” and “getting to the bottom
line” is paramount in business. However, in most other countries
around the world “time is for building relationships” and an
integral part of getting to know the other party you are
considering doing business with before starting a transaction.
How much of an advantage would workplace diversity be if we
followed this practice more closely?
Language skills are obviously needed in today’s increasingly
global economyand diverse workers often have this proficiency.
If a company needs specific knowledge or language skills, it may
hire foreign nationals for help. In some markets, international job
seekers have the advantage. For example, companies breaking
into European, Asian or Latin American markets will need
foreign expertise. It is always advised, that to truly build
relationships with the other people of the world, we must speak
their language. It is a tremendous advantage of workplace
diversity if we enable people from other cultures can help us
understand not just their words, but also the meaning behind what
they are saying.
New processes can result when people with different ideas come
together and collaborate. In today’s fast-moving world, there is
no longer room for thinking. American workers must bring
multiple skills to the environment, think cross culturally, and
adapt quickly to new situations. Those who meet these criteria are
likely to do well, regardless of culture--even in tough economic
times.
Positive Reputation - Job seekers are drawn to companies with
diverse workforces because it is evident that the companies do not
practice employment discrimination. Potential employees want to
know that employers treat their staff fairly regardless of race,
ethnicity or gender. Not only are such firms able to attract new
talent but they can also retain existing talent because of high
employee morale resulting from workforce diversity.
Other benefits include: enhanced performance, access to wider
talent pool, diversity of thinking and improved corporate
governance.”
Diversity Issues
Diversity in the work environment promotes acceptance, respect
and teamwork. Companies that overcome certain diversity issues
often achieve greater productivity, profit and company morale.
The major diversity issues at workplace include:
Respect in the Workplace
The key component in achieving a favorably diversified
workplace is establishing teamwork and mutual respect among
staff members. Acceptance of individual differences is essential

in creating a copacetic and productive work environment.

Acceptance leads to respect, and ultimately opportunity.
Conflict
Conflict among employees becomes inevitable when prejudice,
racism, discrimination and a lack of respect creep into a work
environment. If not distinguished, this can turn explosive or even
violent. Businesses who provide a diversified work environment
and provide sufficient diversity training often reduce or eliminate
such occurrences.
Lifestyle Acceptance
Though one's personal life should typically not affect their job
performance, however, at times the lifestyle acceptance is an
issue in the workplace. Unfortunately, even though many
employers now provide extended benefits to "alternative lifestyle
partners," sometimes gay and lesbian workers experience
disrespect and discrimination from co-workers. Such behaviour
often leads to an uncomfortable working atmosphere and poor
productivity.
Ethnic and Cultural Differences
It is often noticed that, some individuals harbour unfair prejudices
against people of different colours, cultures, ethnicity or religion
than their own. Such prejudice should not be tolerated in the
workplace and should be dealt with in a firm and prompt manner.
Firm company policies and appropriate training help build
acceptance and respect among a well-diversified employee body.
Gender
One the oldest and most common diversity issues in the
workplace is the topic on "men vs. women". Over the years, a new
element in the disputes over equal pay and opportunity is the

transgender employee.
Harassment
At times harassment can be an issue in a diversified work
environment, but should absolutely never be tolerated.
Recognizing harassment is key in preventing and eliminating
discrimination from the workplace. Even the slightest comment
made in jest can be considered harassment if any -- even remotely
vague -- any racial, sexual or discriminatory connotation is made.
For example, "I love Asian women" or "We should have hired a
man."
Communication
Even when no prejudice exits among employees, a diversified
workplace can bring about certain communication issues. Hiring
immigrants who speak little or no English can reduce productivity
by creating a communication barrier among team members.
Employing some form of communication training and hiring
sufficiently bilingual workers helps encourage and improve staff
interaction.
Generation Gaps
In larger diversified corporations, staffs are often made up of
workers who range in age from teenagers to senior citizens.
Inevitably, generation gaps can become an issue and the age
differences can trigger "cliques" and separation of the company
as a unit. Bridging the gap between multiple generations of
workers can sometimes become an issue for employers
attempting to establish teamwork.

Disabilities
Unfortunately, workers who are mentally or physically
handicapped sometimes encounter discriminatory behaviour
from insensitive co-workers. In some cases, employers
innocently overlook handicapped worker needs, such as ramps or
special needs equipment. Creating a fair and comfortable work
environment for disabled employees is important in a diversified
workplace.
Consistency
Diversity training and practices are not just a course or exam that
employees take. Consistency and a daily practice of company
behaviour policies is essential in moulding a positive and
productive workplace.
Steps in Managing Diversity

“Diversity in the workplace is important for running a successful
business. Your workforce, your customers, and your markets are
increasingly diverse. To promote individual and organizational
success, you must welcome diversity and manage it well. These
five steps will help to manage diversity effectively:
Emphasize communication: Organizations should ensure that
all employees understand their policies, procedures, safety rules,
and other important information. They should work to overcome
language and cultural barriers, have key materials, such as safety
information, translated when possible and use pictures and
symbols on warning signs so that everybody can understand.
View employees as individuals: Positive and negative
stereotypes, both should be avoided.There should not be any
assumptions regarding employees from different groups.
Successes and failures should be judged individually.
Organizations should respond promptly and firmly when

employees express prejudices or stereotypes and also remind
them of the policies that prohibit discrimination. Employees
should be encouraged to view co-workers as individuals and
judge them on their work, not on personal factors.
Encourage employees to work in diverse groups:
Organizations should assure that work teams reflect the diversity
of their workplace. Diverse work teams let employees get to know
and value one another as individuals. They also help in expanding
the experiences and views of all the workers on the team. In
addition, they help them recognize the strength of their combined
talents and perspectives.
Base decisions on objective criteria: Each and every employee
(of all backgrounds) should be asked to meet required standards
and perform to the best of their ability. There should not be
different criteria for different groups. Management should focus
on job-related issues, not personal issues, when dealing with
employees.
Be open-minded: Recognize, and encourage employees to
recognize, that one’s own experience, background, and culture
are not the only ones with value to the organization. Management
should set an example of encouraging diversity by developing
relationships with colleagues whose backgrounds differ from
theirs. They should identify ways to incorporate diverse
perspectives and talents into efforts to achieve organizational
goals.
EMPLOYEE SEPARATION, DOWNSIZING,

OUTSOURCING
Employee separation is a sensitive issue for any organization.
Usually, an employee leaves the organization after several years
of service. Thus, the permanent separation of employees from an

organization requires discretion, empathy and a great deal of
planning. An employee may be separated as consequence of
resignation, removal, death, permanent incapacity, discharge or
retirement.
The employee may also be separated due to the expiration of an
employment contract or as part of downsizing of the workforce.
Organizations should never harass the employees, especially in
the case of resignation, just because they are quitting the
organiza-tion. In fact, a quitting employee of the organization
must be seen as a potential candidate of the future for the
organization and also the brand ambassador of its HR policies and
practices. However, many organizations are still treating their
employees as "expendable resources" and discharging them in an
unplanned manner whenever they choose to do so.
Each organization must have comprehensive separation policies
and procedures to treat the departing employees equitably and
ensure smooth transition for them. Further, each employee can
provide a wealth of information to the organization at the time of
separation. Exit interviews can be conducted by the HR
department to ascertain the views of the leaving employees about
different aspects of the organization, including the efficacy of its
HR policies.
The cost of employee separation
The cost of employee separation differs for different firms. For
example, an organization’s geographic location may necessitate a
particularly high cost of recruiting new employees, which causes
the cost of turnover in that organization to be unusually high. The
effect of lost talent on sales, on productivity, or on research and
development all may be tremendous, but difficult to estimate.
Also, in recent study it has been found that employee turnover
rate is related to profitability. A research done by 200 insurance

brokers ended up with this conclusion.
Recruitment costs: “The costs associated with recruiting a
replacement may include advertising the job vacancy and using a
professional recruiter to travel to various locations (including
college campuses).”
Selection costs: “Selection costs are associated with selecting,
hiring, and placing a new employee in a job. Interviewing the job
applicant includes the costs associated with travel to the interview
site and the productivity lost in organizing the interviews and
arranging meetings to make selection decisions.”
Training costs: “Most new employees need some specific
training to do their job. Training costs also include the costs
associated with an orientation to the company’s values and
culture.”
Separation costs: “A company incurs separation costs for all
employees who leave, whether or not they will be replaced. The
largest separation cost is compensation in terms of pay and
benefits. Most companies provide severance pay (also called
separation pay) for laid-off employees. Severance pay may add
up to several months’ salary for an experienced employee.
Although length of service is the main factor in determining the
amount of severance pay, many companies also use formulas that
take into account factors such as salary, grade level, and title.
LABOUR LEGISLATIONS
Labour law also known as employment law is the body of laws,
administrative rulings, and precedents which address the legal
rights of, and restrictions on, working people and their

organizations. As such, it mediates many aspects of the

relationship between trade unions, employers and employees.
The term ‘Labour Legislation’ is used to cover all the laws which
have been enacted to deal with “employment and
nonemployment” wages, working conditions, industrial relations,
social security and welfare of persons employed in industries.
In other words, Labour law defines the rights and obligations as
workers, union members and employers in the workplace.
Generally, labour law covers:
 Industrial relations – certification of unions, labour-

management relations, collective bargaining and unfair
labour practices;
 Workplace Health and Safety;
 Employment standards, including general holidays, annual

leave, working hours, unfair dismissals, minimum wage,
layoff procedures and severance pay.
There are two broad categories of labour law. First, collective
labour law relates to the tripartite relationship between employee,
employer and union. Second, individual labour law concerns
employees’ right at work and through the contract for work. The
labour movement has been instrumental in the enacting of laws
protecting labour rights in the 19th and 20th centuries. Labour
rights have been integral to the social and economic development
since the industrial revolution. In India, labour legislation is
treated as an arm of the State for the regulation of working and
living conditions of workers. Organized industry in a planned
economy calls for the spirit of co-operation and mutual
dependence for attaining the common purpose of greater, better

and cheaper production. Since this had not been happening

voluntarily, the need for State intervention. 3.
History/Evolution of Labour Laws

History of Labour Laws across World
Labour law arose due to the demands of workers for better
conditions, the right to organize, and the simultaneous demands
of employers to restrict the powers of workers in many
organizations and to keep labour costs low. Employers’ costs can
increase due to workers organizing to win higher wages, or by
laws imposing costly requirements, such as health and safety or
equal opportunities conditions. Workers’ organizations, such as
trade unions, can also transcend purely industrial disputes, and
gain political power – which some employers may oppose. The
state of labour law at any one time is therefore both the product
of, and a component of, struggles between different interests in
society.
International Labour Organization (ILO) was one of the first
organizations to deal with labour issues. The ILO was established
as an agency of the League of Nations following the Treaty of
Versailles, which ended World War I. Post-war reconstruction
and the protection of labour unions occupied the attention of
many nations during and immediately after World War I, In Great
Britain, the Whitley Commission, a subcommittee of the
Reconstruction Commission, recommended in its July 1918 Final
Report that “industrial councils” be established throughout the
world. The British Labour Party had issued its own reconstruction
programme in the documents titled Labour and the New Social
Order. In February 1918, the third InterAllied Labour and
Socialist Conference (representing delegates from Great Britain,
France, Belgium and Italy) issued its report, advocating an
international labour rights body, an end to secret diplomacy, and
other goals. And in December 1918, the American Federation of

Labour (AFL) issued its own distinctively apolitical report, which
called for the achievement of numerous incremental
improvements via the collective bargaining process.
As the war drew to a close, two competing visions for the post-
war world emerged. The First was offered by the International
Federation of Trade Union (IFTU), which called for a meeting in
Berne in July 1919. The Berne meeting would consider both the
future of the IFTU and the various proposals which had been
made in the previous few years. The IFTU also proposed
including delegates from the Central Powers as equals. Samuel
Gompers, president of the AFL, boycotted the meeting, wanting
the Central Powers delegates in a subservient role as an admission
of guilt for their countries’ role in the bringing about war. Instead,
Gompers favoured a meeting in Paris which would only consider
President Woodrow Wilson’s Fourteen Points as a platform.
Despite the American boycott, the Berne meeting went ahead as
scheduled. In its final report, the Berne Conference demanded an
end to wage labour and the establishment of socialism. If these
ends could not be immediately achieved, then an international
body attached to the League of Nations should enact and enforce
legislation to protect workers and trade unions.
The British proposed establishing an international parliament to
enact labour laws which each member of the League would be
required to implement. Each nation would have two delegates to
the parliament, one each from labour and management. An
international labour office would collect statistics on labour
issues and enforce the new international laws. Philosophically
opposed to the concept of an international parliament and
convinced that international standards would lower the few
protections achieved in the United States, Gompers proposed that
the international labour body be authorized only to make

recommendations, and that enforcement be left up to the League

of Nations. Despite vigorous opposition from the British, the
American proposal was adopted.
The Americans made 10 proposals. Three were adopted without
change: That labour should not be treated as a commodity; that
all workers had the right to a wage sufficient to live on; and that
women should receive equal pay for equal work. A proposal
protecting the freedom of speech, press, assembly, and
association was amended to include only freedom of association.
A proposed ban on the international shipment of goods made by
children under the age of 16 was amended to ban goods made by
children under the age of 14. A proposal to require an eight-hour
work day was amended to require the eighthour work day or the
40-hour work week (an exception was made for countries where
productivity was low). Four other American proposals were
rejected. Meanwhile, international delegates proposed three
additional clauses, which were adopted: one or more days for
weekly rest; equality of laws for foreign worker; and regular and
frequent inspection of factory conditions.
The Commission issued its final report on 4 March 1919, and the
Peace Conference adopted it without amendment on 11 April.
The report became Part XIII of the Treaty of Versailles. (The
Treaty of Versailles was one of the peace treaties at the end of
World War I. It ended the state of war between Germany and the
Allied Powers. It was signed on 28 June 1919).
The first annual conference (referred to as the International
Labour Conference, or ILC) began on 29th October 1919 in
Washington DC and adopted the first six International Labour
Conventions, which dealt with hours of work in industry,
unemployment, maternity protection, night work for women,
minimum age and night work for young persons in industry. The
prominent French socialist Albert Thomas became its first
Director General. The ILO became a member of the United

Nations system after the demise of the League in 1946.
Evolution of Labour Laws in India

The law relating to labour and employment is also known as
Industrial law in India. The history of labour legislation in India
is interwoven with the history of British colonialism. The
industrial/labour legislations enacted by the British were
primarily intended to protect the interests of the British
employers. Considerations of British political economy were
naturally paramount in shaping some of these early laws. Thus
came the Factories Act. It is well known that Indian textile goods
offered stiff competition to British textiles in the export market
and hence in order to make India labour costlier the Factories Act
was first introduced in 1883 because of the pressure brought on
the British parliament by the textile magnates of Manchester and
Lancashire. Thus India received the first stipulation of eight hours
of work, the abolition of child labour, and the restriction of
women in night employment, and the introduction of overtime
wages for work beyond eight hours. While the impact of this
measure was clearly welfarist the real motivation was
undoubtedly protectionist.
The earliest Indian statute to regulate the relationship between
employer and his workmen was the Trade Dispute Act, 1929 (Act
7 of 1929). Provisions were made in this Act for restraining the
rights of strike and lock out but no machinery was provided to
take care of disputes.
The original colonial legislation underwent substantial
modifications in the post-colonial era because independent India
called for a clear partnership between labour and capital. The
content of this partnership was unanimously approved in a
tripartite conference in December 1947 in which it was agreed
that labour would be given a fair wage and fair working

conditions and in return capital would receive the fullest co-
operation of labour for uninterrupted production and higher
productivity as part of the strategy for national economic
development and that all concerned would observe a truce period
of three years free from strikes and lockouts. Ultimately the
Industrial Disputes Act (the Act) brought into force on
01.04.1947 repealing the Trade Disputes Act 1929 has since
remained on statute book.
The nature of labour legislations

The following points characterise the nature of labour
legislations: a) The labour legislations are the products of
Industrial Revolution and they have come into being to take care
of the aberrations created by it. They are different from common
legislations, because they come to alleviate special disorders
created by specific circumstances. Therefore, they are specific
and not general in orientation, philosophy, concept and even in
practice.
b) Labour legislation regards individuals as workers, whereas the
general legislation regards him a citizen. The principles
governing labour legislations are more influenced by the
postulates of social justice than general justice. Workers are the
weaker class of industrial society and have suffered long at the
hands of employers. Therefore, these sets of legislations go out of
the way in protecting workers and securing justice to them. The
influences of ‘discriminative justice’ and ‘distributive justice’ can
be clearly seen over them. All the labour legislations are heavily
skewed towards labour and they are specifically designed like
that.
c) Labour legislation seeks to deal with problems arising out of
occupational status of the individual. Consequently, such
problems as hours of work, wages, working conditions, trade

unions, industrial disputes etc. come to be the main subject matter
of labour legislations. Thus, the behavior of the individual or his
groups is the function of labour legislation as of any other
legislation. But under labour legislation, the individual is affected
in the capacity of a worker or an employer. Therefore, the persons
who are neither the employers nor the workers are least affected
directly by labour legislation. To make the point clear, a few
examples are necessary. A legislations regarding working
conditions such as the factory legislation or laws regarding
payment of wages or compensation for work injusry or
employment of women or children impinges upon the individuals
as workers and the employers. On the contrary, a law regarding
ownership of property or a law relating to the marriage or sales
tax affects him as a citizen.
d) Individuals have different roles to perform and different laws
are designed for regulating the different roles. It is the role-
relation that determines whether a particular legislation falls
under the category of labour legislation, social legislation or
general legislation. All these legislations try to meet the specific
objectives of their respective target groups that is (a) to provide
subsistence, (b) to aim at abundance, (c) to encourage equality,
and (d) to maintain security.
e) As labour legislations are to regulate the conditions of labour
in the industrial milieu, it is required to be adjusted as per the
changing requirements of industry. This has to be done more
frequently than the general legislation where changes are not that
swift. Unless labour legislations are subjected to frequent revision
and not left to continue as they are, they become obsolete and
irrelevant. The Indian Labour Legislations are the best examples.
Most of them have become outdated as the required revisions
have not been affected and gaps have been created between the

expectation of industrial society and the institution of labour

legislation.
f) Not only contractual obligations, but beyond it by created new
rights and obligations. Labour Law can operate along with
General Law. A ‘theft’ can be dealt by Labour Law as well as IPC
No jurisdiction of civil courts.
Objectives of the labour legislations
Labour legislation in India has sought to achieve the following
objectives:
a) Establishment of justice – Social, Political and Economic.
b) Provision of opportunities to all workers; irrespective of caste,
creed, religion, beliefs; for the development of their personality.
c) Protection of weaker sections in the community.
d) Maintenance of Industrial Peace.
e) Creation of conditions for economic growth.
f) Protection and improvement of labour standards.
g) Protect workers from exploitation.
h) Guarantee right of workmen to combine and form association
or unions.
i) Ensure right of workmen to bargain collectively for the
betterment of their service conditions.
j) Make state interfere as protector of social wellbeing than to
remain an onlooker.
k) Ensure human rights and human dignity.
Proper regulation of employee-employer relations is a condition

precedent for planned, progressive and purposeful development
of any society. The objectives of labour legislation are a
developing concept and require ceaseless efforts to achieve them
on a continuous basis. In its landmark judgment in Hindustan
Antibiotics vs. The Workmen (A.ER. 1967, S.C. 948; (1967) 1,
Lab.L.J.114) the Supreme Court of India made a significant
observation. The object of the Industrial law, said the Court, was
to bring in improvements in the service conditions of industrial
labour by providing them the normal amenities of life, which
would lead to industrial peace. This would accelerate the
productive activities of the nation, bringing prosperity to all and
further improving the conditions of labour.
Need and importance of labour legislation in India

The need for labour legislations may be summarized as under:
It is necessary for the health, safety and welfare of workers.
It is necessary to protect workers against oppressive terms as
individual worker is economically weak and has little bargaining
power.
It encourages and facilitates the workers in the organization.
It provides a mechanism to settle industrial disputes of various
nature.
It helps in enforcing social insurance and labour welfare schemes.
It is instrumental in improving industrial relation i.e. employee-
employer relations and minimized industrial disputes.
It helps workers in getting fair wages
It helps in minimizing labour unrest.
It ensures job security for workers

It promotes welcome environment conditions in the industrial
system
It helps in fixing rest pauses and work hours etc.
It helps in providing appropriate compensation to workers, who
are victims of accidents.
Classification/types of labour legislation

On the basis of specific objectives, which it has sought to achieve,
the labour legislations can be classified into following categories:
A. Regulative
B. Protective
C. Wage-Related
D. Social Security
E. Welfare both inside and outside the workplace.
A. The Regulative Labour Legislation
The main objective of the regulative legislation is to regulate the
relations between employees and employers and to provide for
methods and manners of setting industrial disputes. Such laws
also regulate the relationship between the workers and their trade
unions, the rights and obligations of the organizations of
employers and workers as well as their mutual relationships.
1. The Trade Unions Act, 1926
2. The Industrial Disputes Act, 1947

3. Industrial Relations Legislations enacted by states of

Maharashtra, MP, Gujarat, UP, etc.
4. Industrial Employment (Standing Orders) Act, 1946.
B. The Protective Labour Legislations
Under this category come those legislations whose primary
purpose is to protect labour standards and to improve the working
conditions. Laws laying down the minimum labor standards in
the areas of hours of work, supply, employment of children and
women, etc in the factories, mines, plantations, transport, shops
and other establishments are included in this category. Some of
these are the following:
1. Factories Act, 1948
2. The Mines Act, 1952
3. The Plantations Labour Act, 1951.
4. The Motor Transport Workers Act, 1961
5. The Shops and Establishments Acts
6. Beedi and Cigar Workers Act, 1996
C. Wage-Related Labour Legislations
Legislations laying down the methods and manner of wage
payment as well as the minimum wages come under this category:
1. The Payment of Wages Act, 1936
2. The Minimum Wages Act, 1948
3. The Payment of Bonus Act, 1965
4. The Equal Remuneration Act, 1976
D. Social Security Labour Legislations

They cover those legislations, which intend to provide to the
workmen, social security benefits under certain contingencies of
life and work.
1. The Workmen’s Compensation Act, 1923
2. The Employees’ State Insurance Act, 1948
3. The Coal Mines PF Act, 1948
4. The Employees PF and Miscellaneous Provisions Act,
1952
5. The Maternity Benefit Act, 1961
6. Payment of Gratuity Act, 1972
Chapter VA of the Industrial Disputes Act 1947 is also, in a
manner of speaking, of the character of social security in so far as
it provides for payment or lay-off, retrenchment and closure
compensation.
E. Welfare Labour Legislations

Legislations coming under this category aim at promoting the
general welfare of the workers and improving their living
conditions. Though, in a sense, all labour-laws can be said to be
promoting the welfare of the workers and improving their living
conditions and though many of the protective labour laws also
contain chapters on labour welfare; the laws coming under this
category have the specific aim of providing of improvements in
the living conditions of workers. They also carry the term
“Welfare” in their titles.
1. Limestone and Dolomite Mines Labour Welfare Fund
Act, 1972
2. The Mica Mines Welfare Fund Act, 1946
3. The Iron Ore Mines, Manganese Ore Mines and

Chrome Ore Mines Labour Welfare Fund Act, 1976.
4. The Cine Workers Welfare Fund Act, 1981
5. In addition, some state governments have also enacted
legislations for welfare funds
6. Beedi Workers Welfare Funds Act, 1976
F. Miscellaneous
Besides the above, there are other kinds of labour laws, which are
very important. Some of these are:
1. The Contract Labour (Regulation and Abolition) Act,
1970
2. Child Labour (Prohibition and Regulation) Act, 1986
3. Building and other construction workers (Regulation of
Employment and Conditions of Service) Act, 1996
4. Apprentices Act, 1961
5. Emigration Act, 1983
6. Employment Exchange (Compulsory Notification of
Vacancies) Act, 1959
7. Inter State Migrant Workmen (Regulation of
Employment and Condition of Service) Act, 1979
8. Sales Promotion Employees (Condition of Service)
Act, 1976
9. Working Journalists and other Newspapers Employees
(Condition of Service and Miscellaneous Provision) Act,
1955.
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HUMAN RESOURCE

2019 Admission onwards

CORE COURSE: BBA5 B07

HUMAN RESOURCE MANAGEMENT

Human Resource Management 2

Module Contents Page

3 Training and Development 69 – 80

Performance Appraisal, and

Human Resource Management 3

Human Resource Management 4

Module III : Training and Development: Concepts;

Human Resource Management 5

Human Resource Management 6

Human Resource Management 7

In other words, HRM is concerned with getting better

CONCEPT OF HUMAN RESOURCE MANAGEMENT

Meaning and Definition

maintaining employee’s safety, welfare and health by complying

Human Resource Management 9

2. It is a pervasive function: Human Resource Management is a

Human Resource Management 10

6. It is a continuous process: Human Resource Management is

Human Resource Management 11

- Worker’s wages and salaries

Human Resource Management 12

increasing worker’s productivity to increasing worker’s

The management techniques mainly involved the

Human Resource Management 14

Also the worker is regarded as a commodity, which can be

Human Resource Management 15

H R Management Vs. Personnel Management

HRM Personnel Management

It gives more importance to Performance is evaluated

It works on the basis of It works on the basis of

Process of decision making is Process of decision making is

It supports performance It supports fixed remuneration

It uses latest techniques of It uses outdated techniques of

It practices division of work It practices only division of

It favours all round It favours contractual

Human Resource Management 16

Scope of Human Resource Management

Human Resource Management 17

Motivation – Human Resource Management tries to keep

Human Resource Management 18

(c) Proper utilization of human resources for the success of the

Human Resource Management 19

• To equip the employees with precision and clarity in

13. Reviewing and auditing manpower management in the

Human Resource Management 22

Motivation is a continuous process as new needs and expectations

Before these processes are performed, it is better to determine the

Human Resource Management 26

Factors which must be borne in mind while fixing the

4. Maintenance (Working Conditions and Welfare):

Human Resource Management 27

Human Resource Management 28

The personnel manager has to ensure the release of retirement

Human Resource Management 29

maintaining good employee- employer relationship and activities

Human Resource Management 30

4. Under personnel management, personnel function is

New Role of Human Resource Management