HRM Complete Notes

INTRODUCTION 

Human Resources are one of the most vital assets of an organization. It is the people who make other resources moving; they perform various activities in different financial areas like production, marketing, finance etc. The significance of human resources in a modern organization can be seen €€in the context of activation of non human resources means for developing competition advantages and source of creative energy. HRM handle all physical and financial resources in an organization. The quality of human resource is a critical factor in the success of any organization, and more so in service organization like banking and insurance. In super competitive co mpetitive world, the thing that is most unique to every financial institution is the capability of its people .It is the organization’s employees-its human resources-that give a bank or insurance firm its competitive edge.

WHAT IS HUMAN RESOURCE MANAGEMENT?  Wendell French describes human resource management as “the philosophy, policies, procedures, and practices related to the management of people within the organization.”

In the words of Robbins “Human resource management is concerned with the “people” dimensions in management. It is a process consisting of the acquisition, development, motivation, and maintenance of human resources.”

Human resources management is about managing people. It is a process of binding of people and organizations together so that the objectives of each are achieved.

Human resource management is based on four fundamental principles: 1. Human resources resources are the the most most importa important nt assets assets an an organization has and their effective management is the key to its success. 2. Organizatio Organizational nal success success is most likely likely to be achieved achieved if if the personnel policies and procedures procedures are closely linked to corporate objectives and strategic plans. 3. Organizatio Organizational nal culture, culture, values and climate climate significant significantly ly influence managerial behavior and exert a major influence on the achievement of excellence. Hence, continuous effort starting from the top is required for the management and acceptance of the culture. 4. Human resour resource ce managemen managementt is concerned concerned with with integration –getting all members of the organization involved and working together with a sense of common purpose.

Human resources management is about managing people. It is a process of binding of people and organizations together so that the objectives of each are achieved.

Human resource management is based on four fundamental principles: 1. Human resources resources are the the most most importa important nt assets assets an an organization has and their effective management is the key to its success. 2. Organizatio Organizational nal success success is most likely likely to be achieved achieved if if the personnel policies and procedures procedures are closely linked to corporate objectives and strategic plans. 3. Organizatio Organizational nal culture, culture, values and climate climate significant significantly ly influence managerial behavior and exert a major influence on the achievement of excellence. Hence, continuous effort starting from the top is required for the management and acceptance of the culture. 4. Human resour resource ce managemen managementt is concerned concerned with with integration –getting all members of the organization involved and working together with a sense of common purpose.

IMPORTANCE OF HUMAN RESOURCE  MANAGEMENT  Human resources are the most precious possessions of any organization. It is, therefore, necessary to take utmost care for their survival and growth. Human resource management is the management of this most important resource. Liberalization and globalization has increased the importance of human resource management by manifold. Effective human resource management is vital for its impact is felt from the individual level to the national level. The significance of human resource management is at four levels: 1. Organizational Organizational significance: Human resource management plays an important role in helping the organization attain its goals. It helps in this direction through effective human resource planning, recruitment and selection of talented employees, training and development of employees, developing sound performance appraisal and compensation systems, career planning and so on. 2. Professional Professional significance: Effective management of human resource contributes towards the personal growth and development of every employee. It helps to improve the quality of work life by providing a healthy working environment. 3. Social significance: Human resource management is of great importance to the society. Sound management of human resources helps in satisfying the social and psychological needs of employees

Through suitable employment. It avoids wastage of human resources and helps in the conservation of physical and mental health. 4. National significance: The true wealth of nation is not its natural resources but its people. Human resources and their management play a vital role in the development of a nation. The development of a country depends on the skills, attitudes and values of its human resources. Effective management of human resources helps to speed up the process of economic growth, which in turn leads to higher standards of living and fuller employment.

OBJECTIVES OF HUMAN RESOURCE  MANAGEMENT  Every organization has some objectives. In order to attain organizational objectives, it is necessary to integrate the interests of the employees with that of the employer. Hence the objectives of human resource management are derived from the basic objectives of the organization. 

Integration of goals: HRM seeks to integrate all the individuals and groups within the organization by reconciling individual/group goals with those of the organization.

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Cost containment: In today’s competitive business environment, keeping expenses down or cost containment, is a critical HRM goal.

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Goals through able employees: HRM seeks to help the organization attain its goals by providing it with competent and dedicated employees.

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Optimization of human resources: By employing the knowledge and skills of employees efficiently and effectively, HRM seeks to optimally utilize the human resources of the organization.

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Growth and development of employees: HRM seeks to ensure the growth and development of the employees by providing opportunities for training and advancement.

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Self-actualization: HRM aims to increase employee’s job satisfaction and set them on the path of self-actualization by providing them with opportunities to utilize their potential to the fullest.

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Satisfy needs: By providing adequate compensation, HRM seeks to ensure that the basic needs of the employees are satisfied and they are able to live a dignified life.

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Motivation: An important goal of HRM is to motivate the human resources through adequate monetary and nonmonetary incentives so as to stimulate better performance, which in turn will enable the organization to accomplish its objectives. It also helps to retain talented employees and reduce employee’s turnover.

*SCOPE OF HUMAN RESOURCE MANAGEMENT  The scope of human resource management is very vast. It is connected with all major activities in the working life of a worker. HRM is connected with every other department, as human resources are the requirement of all departments in the organization. HRM covers the following areas: 

Human resource planning

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Job analysis and design

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Recruitment and selection and induction

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Training and development

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Performance appraisal

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Transfers and promotion

*HUMAN RESOURCE MANAGEMENT  FUNCTIONS  Human resource management involves a large number of functions. This number varies according to the size and needs of the organization. The functions of HRM affect the organization internally. However the external environment affects HRM functions. The major functions of human resource management are:

Human resource planning: Human resource planning is the process of assessing the organization’s human resources needs in the light of organizational goals and changing conditions and making plans to ensure that a competent, motivated work force is employed. Human resource planning is very important in these modern times where everything is fluid and changes are occurring at great speed. ♦ Organizational and job designing: An important activity of HRM is developing an organization which caters for all the activities required, groups, them together in a way which encourages integration, cooperation, and provides for effective communication and design making. Job design is concerned with deciding on the content and accountabilities of jobs in order to motivate employees and maximize job satisfaction. ♦

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Staffing: staffing or acquisition of human resource is another activity of human resource management. Staffing activities determine the composition of an organization’s human resources.

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Staffing activities include: attracting qualified people to the organization, selecting from among candidates, reassigning employees through transfer, promotion or demotion and ultimately managing the employee separation through resignation, discharge or retirement.

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Training and development: This activity of HRM focuses on improving the performance of individuals

and groups within the organization. These activities aim to help employees learn new skills or refine existing skills. Human resource managers must decide which skills or knowledge areas need development and which methods are most effective for helping employees acquire skills and knowledge. Performance appraisal and review: Performance appraisal and review is an ongoing evaluation of individual and group contributions to the organization and the communications of those evaluations to the persons involved. This HRM functions is carried out for a number of purposes: To provide feedback about performance, to determine the need for training, to make decisions about promotions, pay increases and so on. 

Compensation and reward: Organization compensates employees through wages and salaries, bonuses and benefits, such as health insurance, vacation time, and pension programs. The presence or absence of rewards and recognition is important to employee morale and performance. Compensation decisions include determining: ensuring fair and equitable pay differences among employees, designing a pay packages relative to that of its competitors, forms of compensation and so on. 

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Health and safety management: This function of HRM includes activities and events that serve to protect organization members from illness and

physical dangers in the workplace and to assist them with their physical and emotional health. For many organizations, protecting the health and safety of human resources is a prime social responsibility. This HRM functions serves to preserve the human resources of the organization. Employee participation: This is a relatively new function of HRM. Employee participation focuses on giving employees a voice, sharing information with them and consulting them on matters of mutual interest. Employee participation is an important step in establishing industrial democracy. 

* Definition of Personal Management : *

Difference between PM & HRM PM 1. Personnel means persons employed. Personnel management is the management of people employed

HRM 1.HRM is the management of  employees skills , Knowledge, abilities, talents, aptitudes, creative abilities.

2. Employee in personnel management is mostly treated as an economic man as his services are exchanged for wage/ salary

1. Employee in human resource management is treated not only as economic man but also as social & psychological man.  Thus, the complete man is viewed under this approach.

3. Employee is viewed as commodity or tool or equipment which can be purchased & used

2. Employee is treated as a resource

4. Employees are treated as cost

3. Employees are treated as a

centre & therefore management controls the cost of labor

profit centre & therefore invests capital for human resource training & development

5. Employees are used mostly for organizational benefit

4. Employees are used for the multiple mutual benefit of the organization , employees and their family members

6. Personnel function is treated as only an auxiliary

5. Human resource management is a strategic management function.

* Challenges before HR Manager 1. Work life balance- As HR personnel has a dual responsibility he has to get the work done by the employees to attain the goal of the organization & at the same time he has to handle the grievances of  employees , employees should not be overloaded with task & goals 2. Employee Expectations – With the changes in the workforce demographics , globalization , liberalization change in the attitude of employees has been observed their expectations have changed they ask for empowerment & expect fair treatment by the management. 3. Ethical HR Practices- HR managers role in building an ethical climate is significant because they are the one who actually frame the culture of the organization they should follow ethical practices from recruitment to appraisal till the full & final settlement. It has been observed that they themselves at times carry on with unethical practices like taking discounts from consultancies, caterers transport operators etc. 4. Talent Retention – One of the most challenging problem for HR Managers is to retain the talents because of intense competition from global companies domestic companies are in trouble because most of the Indian Companies at present are not offering the perks & benefits what an MNC’s offer, so they find it difficult to retain the talent 5. Managing different work force - For HR manager this is very important that they keep the environment of the organization free of conflicts & when there are thousands of people working together many conflicts crops up so policy of the Companies should be

secular & should not show any biasness all this things has to be considered and implemented by the HR manager

Role of HR Manager –notes in class Characteristics of the workforce –notes in class Personnel Philosophy – notes in class Personnel Manual-notes in class

HR as a supporting system – Most of the organization doesn’t consider HR to be a part of decision making team they are just considered to be a supporting pillar whereas in reality they are the one who actually represent the entire organization & if their views are not included in the policies of the Company it may affect the climate of the organization.

STRUCTURE OF HUMAN RESOURCES  DEPARTMENT  A human recourse department is becoming an integral part of every organization. The following diagram illustrates the common structure of the human resources department:

PRESIDENT/DIRECTOR (Human Resources)

Manager

Manager

Recruitm ent & Selection

Training & Developme nt

Manager

Manager

Compensati on & Benefits

Employe e Welfare

Manager

Employe e Relation s

HUMAN RESOURCE PLANNING  Human Resource Planning is based on the belief that people are an organization’s most important strategic resource. It attempts to address The human resource needs of an organization both in quantitative and qualitative terms. Human Resource planning is also concerned with how people are employed and develops in order to improve organizational effectiveness.

DEFINITION 

Wendell French defines human resource planning as “the process of assessing the organization’s human resources needs in the light of organizational goals and changing conditions and making plans to ensure that a competent, stable work force is employed.”

OBJECTIVES OF HUMAN RESOURCES  PLANNING  The specific objectives of human resources planning may vary as per the specific needs of the organization. However, most human resource plans have the following objectives: •

Optimal utilization of human resources: The main objective of human resource planning is to maintain and improve the organization’s ability to achieve its goal by developing strategies that will result in optimum contribution of human resources.

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Meeting personnel requirements: Human resource planning is not concerned with merely forecasting future manpower requirements of the organization but also with developing appropriate recruitment and selection strategies to meet these requirements. Human resource planning seeks to recruit and select employees in a manner that will maximize return on the investment in human resources.

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Placement of personnel: It is not sufficient the right personnel; but it is important to place them on the right job. Human resources planning strive to place the right man on the right job.

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Prevent disruption of work: The costs of work disruption due to unavailability of required human resources can be

very high. Human resource planning aims to ensure the timely availability of the right number and kind of people for the smooth running of the organization. •

Control costs: An important objective of human resource planning is to reduce or control labor costs by maintaining a proper balance between demand for and supply of human resources. Human resource planning seeks to cut and save costs on human resources.

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Training and management development: Human resource planning aims at developing a well-trained and flexibility workforce. This increases the organization’s ability to an uncertain and changing environment.

*Process of Human Resource Planning It consist of the following steps 1. Analysing organizational plans 2. Demand forecasting: forecasting the overall human resource requirements in accordance with the organizational plans 3. Supply forecasting : obtaining the data & information about the present inventory of human resources and forecast the future changes in the human resource inventory 4. Estimating the net human resource requirements 5. In case of future surplus , plan for redeployment , retrenchment & lay off  6. In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other Companies. 7. Plan for recruitment, development & internal mobility if future supply is more than or equal to net human resource requirements. 8. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future requirements-( ref diagram)

TRANSFERS 

Reshuffle of human resources is essential for the smooth and efficient management of the organization. It also serves the broader interests of the organization. Hence such reshuffles popularly known as job transfers hence become very common in modern business organizations. Job transfers carried out on a routine basis in organization. They are designed to prepare managers to take on the additional responsibilities by providing them with experience in different areas of the firm. Most of the job transfers are considered to be lateral promotions; that is the manager is placed in a position that carries similar authority and responsibility but in a different part of the firm.

DEFINITION   Yorder and associates have defined job transfer as “a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.”

Transfers may be initiated either by the company or the employee. A company may initiate transfer to place employees in positions where they are likely to be more effective. Similarly, employees may initiate transfer to locations where they are likely to get greater satisfaction.

TRANSFER POLICY 

Every organization should have a just and impartial policy concerning the transfers of employees. It is important that every employee knows the policy. A transfer policy serves as a guide – post for managers in affecting transfer policy. A good transfer policy should satisfy the following conditions: •

It should states the types of transfers (departmental or interdepartmental) and the circumstances under which transfers will be made.

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The persons who have the authority to order transfers. Usually the person in charge of that department handles transfers in each department. The HR department usually, has a big say in transfers.

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The effect of transfer on pay and seniority should be clearly mentioned.

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The facilities (leave, special, allowance for shifting place) available to transferred employee should be clearly stated.

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The transfer policy should state the conditions under which personal requests of the employees for transfer will be entertained.

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All transfer decisions should be communicated to the employee in writing.

TYPES OF TRANSFERS  Employee transfer may be classified in to three types based on its purpose:   

Transfers that are affected for the training and development of the employees. Transfers made for adjustment of varying volumes within the organization. Transfers designed to correct the problem of poor employee placement.

The common types of transfers are: 

Production transfers: When there is excess manpower in one department or branch in the organization, they are transferred to other departments or branches in order to lay off. The main purpose of such transfer is to prevent lays offs and stabilize employment.

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Replacement transfers: these types of transfers are applied for the protection of senior or long serving employees. Such transfers are made when the operations of the organization are declining and hence a long-standing employee replaces a junior or new employee.

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Versality transfer: Versality transfers are affected to give the employee a chance to learn various skills involved in different jobs. The purpose of such transfers is to develop and all round employee with varied experience. He is prepared for future positions.

Shift Transfers: Shift transfers are routine in industries where work is in process for 24 hrs or in three shifts. Such transfers are usually effected on rotation basis but they are also effected for personal reasons of an employee such as marriage, child - care, age parents etc. 

Remedial Transfers: Remedial Transfers are affected to correct the wrong placement of the employee or shift an inefficient employee who ids not carrying out his job satisfactorily. The wrongly placed employee is placed in a more suitable job. Such transfers protect the interest of the employees.

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Penal Transfers: The management may transfer an employee from one position to another as punishment for undesirable acts performed by him. In such transfers, the employee is shifted to less important position in the organization.

PROMOTIONS  Promotion refers to advancement of an employee to a higher post carrying greater responsibilities, higher status and better salary. Promotion puts an employee or executive on a career path, which goes upward. On being promoted, promoter’s duties and responsibilities increase, and the higher ones goes in an organization the greater is the effect of the employee’s decision on the working of the organization.

Promotion is upward movement of an employee in the organization’s hierarchy, to another job commanding greater authority, higher status and better working conditions. Generally, when an employee is assigned a higher-level job with more pay and powers, he is said to be promoted.

DEFINITIONS  According to Scott and Clothier, a promotion “is a transfer of an employee to a job which pays more money or one that carries

some preferred status.”

CHAIRMAN AND MANAGING DIRECTOR EXECUTIVE DIRECTOR SCALE VII: GENERAL MANAGER SCALE VI: DEPUTY GENERAL MANAGER SCALE V: ASSISTANT GENERAL MANAGER SCALE IV: DIVISIONAL MANAGER SCALE III: SENIOR MANAGER SCALE II: MANAGER SCALE I: OFFICER SPECIAL ASSISTANT  CLERK

BASES OF PROMOTION  Organizations adopt a variety of criteria for promoting employee. Promotion can be made on the basis of seniority or merit or a combination of both PROMOTION BASED ON SENIORITY

Seniority implies relative length of service in the organization. Seniority is described as “The principle that an employee’s relative length of service is an organization is a factor in determining his employment rights and job opportunities in the organization.” Promotional systems that are based on seniority place a premium on length of service and job experience. I.e. those employees who joined the organization first should be the first choice for promotions. Seniority suggests that employees should be given preference in various aspects of employment based on the length of their service. The use of seniority as the basis of promotion is based on the assumption that the longer a person does a job, the more he learn from it. This experience gives him greater knowledge of the organization and jobs related to his own, hence he is more suitable for promotion. PROMOTION BASED ON MERIT 

This system of promotion takes in to account the knowledge, skills and performance of an employee it stresses on the ability of the employee in deciding promotion. Under this system the best performing employee is promoted.

PROMOTION BASED ON SENIORITY-CUM-MERIT 

As both seniority and merit-based systems of promotion have plus and minus points, may organization use a promotional system based on a combination of seniority and merit.

Before using this system, it is essential that the management clearly state the following details: 1. The minimum length of service to be eligible for promotion. 2. The relative weight age assigned to merit and seniority. 3. The minimum performance and qualifications essential to be eligible for promotion.

PROMOTIONAL POLICIES  Every organization should develop a sound policy regarding promotion of its employees. The promotion policy should formally state the organization’s broad objectives. Employees are likely to be frustrated and restless in the absence of sound promotion policy. The main characteristics of a good promotion policy are as follows: 

Policy statement: The sound promotion policy has a policy statement. It is statement of the ratio of internal promotions to external recruitment at each level, the method and procedure of selection, and qualifications desired.

The policy statement must clearly state whether vacancies are to be filled up primarily from within the organization or by recruitment from outside. 

Basis of promotion: The basis of promotion must be clearly specified. The weight age to seniority and merit must be clearly stated. Ideally, an organization should try to strike a balance between seniority, merit and future potential of the employee.

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Promotion charts: A promotion charts conveys to the employees the avenues of advancement available to them. In a promotion chart each position is linked to several other positions can be made.

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Communication of policy: The organization should communicate its promotion policy in writing to the employees and the unions. If the organization is secretive about its promotion policies, employees will become suspicious of the management’s intentions.

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Career planning: The promotion policy should be in line with employee career planning. This will avoid sudden spurt promotion followed by drought (long periods when there are no opportunities for promotion.)

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Detailed records: A sound promotion policy ensures that detailed records of employee service and performance are maintained.

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Employee training: The organization must prepare the employees for promotion through suitable training on the  job or in professional institutions or through job rotation and conferences. Consistency: The organization must be consistent in its promotion policies. It should be applied uniformly regardless of the person concerned.

Diagram Demand & Supply forecasting techniques Factors affecting HRP-notes in class HRIS-notes in class VRS-notes in class Outsourcing-notes in class Pinkslip/retrenchment /downsizing/separation-notes in class Contracting & subcontracting- notes in class

B. JOB ANALYSIS  The success of any organization depends on the ‘right man on the right job.’ Matching the man to the job and the job to the man is the key to the efficient running of an organization. The purpose of job analysis is to provide a detailed information and description about the job. Job analysis provides information about why job the job is done, the way it is done, the equipment or machinery used, the skill or training or education needed to perform the job, the wages paid, the working conditions and any other special or unique characteristics of the job.

2.3 DEFINITION  Wendell French defines job analysis as “the systematic investigation of job content, the physical circumstances in which the job is carried out, and the qualifications needed to carry out  job responsibilities.” Methods of collecting job data Merits & Demerits of Job Analysis

2.4 JOB DISCRIPTION AND JOB  SPECIFICATION  Job description and job specification are the two major outcomes of the job analysis process. JOB DISCRIPTION

Job description is sometimes called as position description. Job description is a recorded statement of the activities of the  jobholder. It describes what is done on the job, how it is done and why it is done. Job description attempts to accurately portray job content, environment and conditions of employment. It describes every aspect of the job. It is extremely useful in differentiating one job from another. The job description document usually contains the following information: 

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Job identification: Information regarding the job title, code number of the job, department or division where the  job is located and so on is provided over here. Job summary: It describes the activities or tasks performed on the job.

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Job duties and responsibilities: This is the heart of the  job description. It describes the duties performed and the frequency of each duty. Responsibilities such as supervision, custody of money, supervision and training of staff are described in this part.

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Working conditions: This includes the physical environment of the job, risks in the workplace and possibilities of their occurrence and so on.

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Machines, tools and equipment: The name and types of the major machines and tools used on the job are described here.

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Social environment: This part describes the size of the work group, interpersonal interactions required to perform the job.

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Supervision: It states the extent of supervision given or received, the number of people supervised along with their designation.

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Relation to other jobs: In this part the jobs immediately below and above are mentioned. This provides an idea of the relationship between different aspects of the work.

Job description acts as an important resource for: 1. Describing the job to potential candidates 2. Guiding new employees in what they are specifically expected to do and

3. Comparing the employee’s actual activities with the ones stated in the job description. Job description is an important document that helps to identify the job and gives a clear idea of what the job is. A good job description provides a detailed and clear picture of the whole job. JOB SPECIFICATION

Job specification is also referred to as man specification or employee specification. Job specification is a statement of the minimum qualities required in a candidate for successful performance of the job. It describes the personal characteristics that an individual must process in order to perform the job effectively. Based on the information acquired through job analysis, job specification identifies the knowledge, skills, and abilities needed to do the job effectively. Although the specific items mentioned in the job specification may vary, they usually include following specifications: 1. Qualifications and experience 2. Physical characteristics (height, weight, physique, eyesight, motor coordination) 3. Psychological characteristics (intelligence, analytical ability, concentration, memory, judgment, interests) 4. Social characteristics (emotional intelligence, interpersonal skills, leadership, cooperativeness) 5. Other characteristics (age, sex, family background) Job specification tells what kind of person is required for a given job. It is an important tool in the recruitment and selection process as it helps the selectors to determine whether a candidate has the personal characteristics required to succeed on

the job. Job specification tells what kind of a person to recruit and for what qualities that person should be tested.

JOB EVALUATION  It is the vital that organizations pay their employees fair and competitive salaries in order to attract and retain their talented and competent employees. If the salary is poor then the employee will leave the organization for another that will pay more. However paying more than what an employee deserves will prove costly and counterproductive. Job evaluation means to determine the relative worth of  jobs in an organization. It is the process process of determining the value value of a job in order to fix some salary or wages. Job evaluation is done on the basis of information obtained through job analysis.

DEFINITION  Wendell French defines job evaluation as “a process of determining the relative worth of the various jobs within the organization, so that different wages may be paid to jobs of different worth.”

OBJECTIVES OF JOB EVALUATION  There are several objectives of job evaluation: • To develop a consistent wage policy. •

To determine the rate of pay for each job which is fair and equitable in relation to other jobs in the organization or industry?

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To ensure that like wages are paid to all qualified employees for like work.

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To eliminate inconsistencies and inequalities in wages.

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To establish a rational basis for fixing incentives and different bonus plans.

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To develop a framework for periodic review and revision of wage rates.

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To provide a basis for wage negotiations with trade unions.

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To maximize if not eliminate wage discrimination on the basis of age, sex, caste, religion etc. * Process of Job Evaluation:

 The basic procedure procedure of job job evaluation is to compare the content content of jobs in relation to one another , in terms of their skills or responsibility responsibility or some other requirement. When comparable factors are available jobs can be evaluated more systematically. Each job is compared with all the others using the same factors , sub-factors, sub-factors, and number of  degrees. Following steps should be install to take up a job evaluation programme.

i)Analyze and prepare Job Description : This requires the preparation of  a job description and also an analysis of job requirements for successful performance.

ii) Select and prepare a Job Evaluation Plan : This means that a job must be broken down into its component parts, i.e it should involve the selection of factors, elements needed for the performance of all jobs for which money is paid, determining their value and preparing written instructions for evaluation.

iii) Classify Jobs: This requires grouping or arranging jobs in a correct sequence in terms of value to the firm, and relating them to the money terms in order to ascertain their relative value.

iV) Install the Programme Programme:: This involves involves explainin explaining g it to employees employees putting it to operation. V) Maintain Maintain the Programme: Programme: Jobs cannot cannot continue continue without without updating updating new jobs and job changes in obedience to changing conditions and situations.

Methods of Job Evaluation : Notes in class

RECRUITMENT  The acquisition of human resources for the organization takes place through the process of recruitment and selection. After the human resource needs of the organization are identified through human resource planning, the next step is that of recruitment and selection. One of the most difficult tasks of the human resource manager is that of recruiting and selecting the right kind of people for the organization. Recruitment is the first step towards procuring qualified manpower for the organization. The process of acquiring human resources begins with recruitment, continues with selection and ceases with placement.

DEFINITION  DeCenzo and Robbins describes recruitment as “the process of discovering potential candidates for actual or anticipated organizational vacancies.”

It is a linking activity aimed at bringing together those with  jobs to fill and those seeking jobs.

A number of factors such as the size of the organization, the employment conditions in the community, reputation of the organization, working conditions and salary and benefits offered by the organization affect the recruitment process. Ideally the recruitment process should ensure that for every position available in the organization, there are sufficient numbers of qualified applicants. In very large organization, recruitment is a complex and continuing process that demands extensive planning and effort.

SOURCES OF RECRUITMENT  The various sources of recruitment may be broadly classified in two broad categories: Internal and external sources. Some organizations draw their human resources internally i.e. from within the organization while others draw externally i.e. from outside the organization.

INTERNAL SOURCES OF RECRUITMENT 

The internal sources of recruitment focus on finding qualified applicants within the organization. The organization itself is the best source of applicants for positions above the entry level. The internal sources of recruitment may be of the following type: 

Promotion: promoting qualified and experienced employees may fill vacancies in the organization. Promotion refers to shifting an employee to a higher position carrying higher status, responsibilities and pay. Promotion may be based on performance or seniority depending upon the organization’s promotional policies.

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Transfers: Another common way of filling up vacancies is through internal transfers. An existing employee who is experienced and capable is transferred from one department in the organization to another. In transfers, the shifting of the employee occurs without any major change in his status and responsibilities.

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Job posting (internal advertisement): A popular method of finding applicants is through job postings or internal advertisements. Job posting involves announcing job opening to all current employees through notices on the bulletin boards or through the company newsletters. Some organizations have developed computerized job posting systems so that employees can obtain information on their on their computer screens. Job posting carry information about the nature of the position and qualifications needed, and any employees who is interested in the job may apply for the same. Job announcements ensure that employees are aware of opportunities to move up in the organization.

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Recall or retired and ex-employees: When an organization is not able to find a suitable candidate for a vacancy, former employees of the organization who have retired or had quit the organization may be recalled.

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Employee referrals: Another way to find applicants within the organization is through employee referrals. Informal communications among managers may lead to the discovery of a good candidate for the job. Employee referrals may be for candidates within the organization as well as outside the

organization. Some organizations even offer rewards to employee whose referrals get selected in the organization. 

Skills Inventories: Many firms have developed computerized skills inventories of their employees information on every employee’s skills, educational background, work history, and other important factors is stored in the organization’s database. The skill is used to identify employees with the attributes needed for a particular job.

A new development in this area is the Human Resource Information System (HRIS). It is a computerized system that assists in the processing of HRM information. It provides skill inventory information. The HRIS is designed to quickly fulfill the personnel information needs to the organization. It permits the organization to track most information about an employee and about jobs and retrieve that when it is needed. HRIS is extremely useful for storing employment, training and compensation information on each employee. EXTERNAL SOURCES OF RECRUITMENT  Organizations turn to external sources of recruitment when the internal sources of fall short. New organizations rely largely on external sources to meet their recruitment needs. However even well established organizations turn to external sources when candidates with the desired skills, knowledge and qualifications are not available in the organizations in order to introduce new blood in the organization. There external sources of recruitment are: o Campus recruitment: Educational and training institution like the IIMs, IITs and other professional colleges are a

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good source of recruiting qualified and trained personnel. Many educational institutions have placement departments who forward and names of graduating students to interested organizations and invite them to conduct campus interview. Advertisements: Advertisements in journals, newspapers and magazines with wide circulation is a very popular source of recruitment. However care should be taken in preparing the advertising so that only qualified applicants respond. The advantage of this method is that a single advertisement can reach millions of potential recruits. The cost per persons is very low. As more and more people surf the inter net, the Internet as a medium of advertising is becoming increasingly popular. Employment agencies: Private consulting firms carry out recruiting functions on behalf of organizations. Firms of such kinds are also referred to as head hunting firms. These firms carry out all the functions of recruitment and selection and provide organizations with candidates as per their requirements. The employment agencies charge a fee for their services. ABC consultants, personnel search are some of the top employment consultants in India. Employee recommendations: A very good external source of recruitment is a recommendation from a current employee. An employee will rarely recommended someone unless he is certain that the individual will perform adequately. This is because recommendations reflect on the recommender and his reputation is at stake. Professional bodies: Professional bodies like the institute of chartered accounts, Institute of company secretary maintain a record of qualified persons in their specialized

fields. Organizations can approach such bodies to meet their specific needs. o

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Deputation: In deputation the services of an experienced employee of another organization are borrowed for a fixed period of time. This source of recruitment is usually for senior positions in the organization. The person on deputation serves the borrower organization for a period of time and then returns to the lender organization. Poaching: Poaching involves attracting talented and competent persons from rival organization by offering better terms and conditions of employment with regard to salary, designations, working conditions, additional perks and benefits. Poaching is considered to be unethical as employees often carry with them sensitive information that could hurt the interests of their former organization. Unsolicited or casual applications: Often organizations receive unsolicited applications for jobs in the form of telephone calls, letters, and e-mails. Organizations do not throw such application but maintain a record of these applications as they serve as a prospective source of manpower.

E – Recruiting  Perhaps no method has ever had as revolutionary an effect on recruitment practices as the Internet. There are respective company websites devoted in some manner to job posting

activities. Currently, employees can electronically screen candidates, soft attributes, direct potential hires to a special website for online skill assessment, conduct background checks over the Internet, interview candidates via videoconferencing, and mange the entire process with web based software. Companies benefit immensely through cost saving, speed enhancement and extended worldwide candidate reach which the Internet offers. From the job seekers perspective, the Internet allows for searchers over a boarder array of geographic and company posting than was possible before. There are negatives associated with Internet recruiting. For example, broader exposure might result in many unqualified applicants applying for jobs. More resumes need to be interviewed, more e-mails dealt with and specialized applicant tracking software may be needed to handle the large number of applicants who lack access to Internet. Problems notwithstanding, both job givers as well as job seekers find Internet as the most effective source of recruiting and its usage in the days to come will be all pervasive. Merits & Demerits – Notes in class

SELECTION  Selection is the process of choosing the most suitable person /s out of all the applicants. It is the process of choosing the required qualifications and skills to perform the job successfully. Selection involves screening of candidates. Screening is a process of reducing the number of applicants to a few by way of rejecting the candidates who are not found eligible as per the qualifications prescribed.

Selection of employees is a managerial decision. It is the management, which fixes the criteria for selection. DEFINITION 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 on the job.”

SELECTION PROCEDURE  Organizations make large investments to get the right kind of people; hence, a sound selection procedure is necessary. The objective of the selection procedure is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is the most likely to perform well in that job. Although organizations differ in terms of which selection method to use, most of the follow a fairly standardized set of steps. The various steps involved in the selection procedure are as follows:

PRELIMINARY INTERVIEW APPLICATION BLANK SELECTION TEST  EMPLOYMENT INTERVIEW MEDICAL EXAMINATIONS REFERENCE CHECKS FINAL SELECTION

SELECTION PROCEDURE

1. Preliminary interview: This is the first step in the selection procedure. The objective of this interview is to discard those candidates who are totally unqualified for the job. Only suitable candidates are retained for further screening. Preliminary interview saves time and efforts of both the organization and the candidate. It avoids unnecessary waiting for candidates who have no chance of being hired. The organization too benefits, as it does not waste time and money on further processing unsuitable candidates. The preliminary interview is the first contact of an individual with the organization. Hence it is vital that the

staffs who are involved in this step are extremely courteous, receptive and polite with the rejected candidate. The candidates who seem suitable are given the application blanks to fill. 2. Application blanks: This is a very popular method of getting information from the candidate. The candidates are supplied a blank specially prepared application form for filling it with information relating to educational qualifications, age, experience, training, past experience, hobbies, interests etc. While some organizations have specially prepared application forms, others ask candidates to prepare on their own. The application form has several benefits: • It helps to eliminate those candidates who are lacking in education and experience. • It helps in formulation questions for the interview. • Information obtained through application forms can be used for future reference. 3.

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Selection test: The selection or employment test is the next step in the selection procedure. A variety of psychological tests are used to obtain information about various aspects to an individual’s behavior, performance and attitudes. Use of such tests is becoming increasingly popular. The different tests help in: Identification of differences among individuals. Identification of the maximum and minimum potential of the candidates. Identification of skills, abilities, talents, interests in the candidates.

4. Employment interview: The interview is a widely used tool of selecting prospective candidates for the organization. It gives the employer and prospective employee an opportunity to meet each other. The selection or employment interview serves three purposes: • It is an opportunity to obtain additional information about the candidate and determine his suitability for the  job. It provides information to the candidate about the • organization, the specific job for which he has applied and personnel policies. • It helps to establish a friendly relationship with the candidate and motivate suitable candidates to join the organization. Although the employment interview is very popular, • doubts have been raised as to its reliability in selection of the right candidate. 5. Medical examination: Applicants who have successfully passed the above steps are now sent foe a medical examination. Medical examination is for the following reasons: • It helps to determine whether the candidate is mentally and physically fit to perform the job. • It prevents employment of employees suffering from contagious diseases. • It saves expenditure that the organization may have to incur for medical treatment of the candidate. 6.

Reference checks: Applicants are frequently asked to provide the names and address of two or three persons who

know them well. These persons are commonly referred to as referees or references. These persons may be previous employers, heads of educational institutions or other public figures. The organization contacts the referees through mail or by telephone to know more about the candidate’s character, skills, potentialities etc. The feedback and the comments of the referees influence the selection of the candidate. Candidates who are evaluated positively by referees are selected while those who are evaluated negatively are rejected. 7.

Final selection: The candidates who have cleared all the above obstacles are recommended by the human resources department to the concerned department for their final approval.

On the final approval of the concerned department, the appointment letter is issued to the candidate. The appointment letter contains details regarding the pay scale, the post, the rank, other terms and conditions of employment and the date by which the candidate should join the organization. Sometimes a contract is signed between the candidate and a representative of the organization.

INDUCTION  When a new employee joins the organization, the first few days are ones of great uncertainty. Even the calmest and most competent employee feels a little nervous, anxious and insecure.

This is because he is unfamiliar with the new surroundings, new coworkers and new job procedures. Hence, most organizations offer some kind of an induction program to help new employees get acquired with the company and make a productive beginning on the job. Induction programs are also commonly referred to as orientation programs.

DEFINITION  Michael Armstrong defines induction as “the process of receiving and welcoming employees when they first join the company and giving them the basic information they need to settle down quickly and happily and start work.”

Induction is the process of familiarizing of the new employee with the job and the organization. It includes introducing the new employee to his or her work unit. According to Armstrong, induction has five main aims:

1. To put new employee at ease. 2. To create employee interest in the job and the organization. 3. To provide basic information about working conditions. 4. To indicate the standards of performance and behavior expected from the employee. 5. To tell the employee about training arrangements and how he or she can progress in the company.

3.6 Importance of induction  Induction is extremely important as a new worker often finds himself completely at sea in the workplace. Induction

assumes even greater importance when the new employee is new to the town / city or in some cases to the country. 

Smooth entry: To make the entry of the new employee in to the organization a smooth one as initially everything is strange and unfamiliar to him.

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Favorable attitude: To establish a favorable attitude to the company in the mind of the new employee so that he will stay on in the organization.

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Quick adjustment: To obtain effective output from the new employee in the shortest possible time.

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Reduce employee turnover: Research has found that employees are far more likely to resign during their first few months after the joining the organization. Induction reduces the likelihood of employees leaving the organization quickly.

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Increasing commitment: A proper induction makes the feel that the organization is worth working for. This increases employee commitment as he identities himself with the organization, wants to stay with and is prepared to work hard on behalf of the organization.

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Understand organizational norms: Induction programs convey to the new employee what the organization expects from him in terms of behavioral norms and the values that he should uphold. Induction provides an opportunity to inform people of ‘the way things are done here.’ This reduces any doubts or misconceptions that the new employee may be holding.

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Develop relationships: Induction helps to foster a close and cordial relationship between the newcomers and the old employees and their supervisors.

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Other information: Induction serves as an opportunity to provide other necessary information such as the location of cafeteria, toilets, rest periods, leave rules.

ENTRY INTERVIEW FOR EFFECTIVE INDUCTION OF NEW ENTRANT  Objectives

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To ensure introduction of the new entrant to the institution, its culture, tradition, ethos, and work ethics.

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To have a formal interaction between the head of the branch / office and the new entrant in order to have introduction to the job and colleagues.

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To provide psychological assurance that he will be looked after and cared in the new place.

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Help the employee to shed apprehensions, if any, and feel free in the environment.

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To initiate the socialization process of the employee in the organization on a positive note, so that the process of emotional integration is fast and smooth.

SYSTEM 

The branch manager / section In-charge conducts the entry interview of the entry interview of the new employee on the first first day immediately on his  joining the Branch / office.

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The interview has to be conducted in a friendly atmosphere and the employee is made to feel at ease.

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Through the interview the manager elicits the background of the employee – family and profession, his goals in life, his expectations, his capabilities and potential.

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The manager volunteer’s information about the bank’s history, its rich heritage and culture, its mission and goals to make the employee aware of the duties expected from him. He also gives general information about the Branch / office, the people working there and also the place.

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The manager finds out the needs of the employee at the new place and helps him to settle.

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The manager to introduce the new employee to his colleagues.

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A handbook “step into the family for an enriching partnership” is given to the employee.

TRAINING AND DEVELOPMENT 

A well-trained workforce is the greatest asset of an organization. After the employee is selected, the next important task for the organization is to see that the employee adjusts as quickly as possible on the job and performs his job efficiently. In order to do so, it is essential that the employee is properly trained and prepared for the tasks that lie ahead. An organization cannot function effectively when its employees are not trained well. Lack of training is often the cause of: Poor productivity, Errors and wastages, Unsafe working practices and Dissatisfaction at work. Training is basically the management of learning. The objective of training and development is to raise the level of performance in one or more aspects. This is achieved either by providing new knowledge and information relevant to a job or by teaching new skills or by imbibing an individual with new attitudes, values, motives and other personality characteristics.

DEFINITION  According to Edwin Flippo, training is “the act of increasing the knowledge and skill of an employee for doing a particular job.” Training prepares employees to perform their present job even better and more efficiently. It also prepares the employee for higher positions with increased responsibilities.

TRAINING METHODS  A variety of methods have been developed for the training of managers and senior executives in the organization. The different

methods of management development may be classified as on the on the On-the-job and Of- the-job training methods. MANAGEMENT DEVELOPMENT PROGRAMS On-the-job Training Of-the-job Training 1) Coaching 2) Job rotation and transfers 3) Understudy assignments 4) Committee assignment 5) Project assignment 6) Multiple assignment

1) 2) 3) 4) 5) 6)

Lecture method Case studies Conferences University training In-basket method Wilderness training

On-the-job training 1) Coaching: In coaching a superior guides and instructs a  junior manager. He trainees the junior in the knowledge and skills required to do the job. This method emphasizes on learning by doing. In this method, the superior serves as coach who helps the training grow and improve his performance on a day-today basis. The coach sets challenging goals for the training, informs him what is to be done and evaluate the trainee’s progress towards the goals. 2) Job rotation: Job rotation is a popular management training technique. It involves movement or transfer of managers from one position or job to another on a plant basis. They are move from one managerial position to another according

to a rotation schedule. Job rotation is also called as position rotation and cross training. The aim of job rotation is to broaden the knowledge, skills and outlook of managers. It exposes the managers to different jobs and department to acquaint them with all the facets of the organization. It thus widens the manager’s horizons. Job rotation is frequently used with junior executives and fresh college graduates who are just beginning their working careers. Through job rotation, trainees gain perspective on various aspects of organizatiozational life. They have the opportunity to see and be seen by higher management, and to learn to direct experience where they might best apply their knowledge, abilities and interest. 3) Understudy assignment: In the understudy method, the trainees work directly under individuals whom they are likely to replace. The objective of understudy assignments is to train an employee to succeed in a specific position. The employee may work as an assistant manager to a superior who trains him to shoulder his responsibilities in due course. 4) Committee assignments: Organizations frequently set up committees and panels to investigate and study various problems confronting the company. For example, grievances committee, pay revision committee and so on. Trainees are often placed in such committees so that they get a fee and developed better understanding of the various issues facing the organization. 5) Project assignments: In this method, a number of trainings executives are put together to work on project i.e. closely related to their work or department. The group called

project in or task force studies the problem and find appropriate solutions. In this method the trainees learned the procedures and techniques involved in the particular work and the inter relationships between their department and other departments. 6) Multiple management: This was developed Charles P. in the U.S.A. In this method a junior board of young executives is constituted. This board is given the authority to discuss any problem that the senior board would discuss. They discuss a wide variety of subjects and make recommendations to the board of directors.

Of-the-job Training Methods 1) Lecture method: Lecture method is one of the most popular methods. It is widely used all over the world in the field of education as well as in the field of industrial training. A lecture is a prepared presentation of knowledge, information, and viewpoints in order to make the learners accept what the lecturer says. The key word is ‘prepared’. Presentation of the lecture will spell the difference between acceptance or rejection, interest or boredom. 2) Conferences: The conference method is commonly used when the number of trainees is small. The conference method encourages active participation and leads to greater two-way communication. The conference method permits the participants to pull their ideas together discuss the problem from all points of view express themselves, become aware of the opinions of other, ask questions and seek clarifications.

The effectiveness of the conference method is strongly influence by the skills and personality of the trainer. A good trainer is able to get all the participants involved in the discussions. He knows when to lead the group and when to allow others to lead the discussions. The attitude of trainees, their verbal communications skills and eagerness to acquire knowledge and participate in the discussion also plays a crucial role in the success of the training method. The conference method applies the learning principles of motivation and feedback in training situation. 3) The case study method: The case studies, a trainee come face to face with business situations similar to the ones they are likely to handle future. Case studies consist of problem situations to which the group has to find the best possible situation. Case studies are extremely popular in executive training programs. In a typical case study, a complex problem or case of the kind daily faced by the manger and executives is presented to the trainees prior to a general meeting. The trainees are expected to familiarize themselves with the information and to find additional relevant information. When they meet as a group, each member interprets the problem and offers a solution. Then a systematic discussion takes place. Different view are exchanged, the trainees come to appreciate the different perspectives on a problem and consequently different approaches to solving it. Usually the cases have no single correct solutions. The group leader does not suggest and answer. The group as a whole must reach an agreement and resolve the problem. Through case studies, the trainees learn to diagnose business problems, understand the critical factors in

business and to take decisions with regard to its effects on the organization as a whole. 4) Training in universities: Training programs required a great deal of planning, tremendous infrastructure and trained experts to conduct them. A major constraint is a cost factor, which is very high. Hence many organizations depute their employees for the different courses conducted by the universities and other reputed institutions. Universities have recognized the needs of the industrial community and have devised several programs to cater to the needs of organizations. The programs may be a very brief one-day affair or could extend to one year or more. To suit the convenience of the working employee, the courses are conducted in the evening or on weekends. The courses over a wide variety of subjects, such as • Business policy and strategy • Human relations • General management functions • Communications • Accounting • Industrial relations • Marketing • Quantitative approaches 5)

In-basket method: In this method of training, the trainee is placed in a simulated situation where he is given ‘basketful’ of items that a manager is likely to encounter on the job such as letters, reports, memoranda, notes and other related materials. The trainee has to respond and make decisions on these items. The trainee’s decisions are then evaluated and he is given feedback on the nature of actions he takes.

6)

Sensitivity training: In sensitivity training, trainees meet in small groups for a few hours every day. The training often takes place at a comfortable retreat, removing trainees from the daily pressures and routines of the job and family life. The trainers assume a passive role. There is no agenda or format. In the beginning the discussion is very unclear and unstructured and the topic of the discussion does not matter. The important thing is that something to be discussed and someone be involved in the process. In time trainees begin to discuss themselves and one another, pointing out their likes and dislikes, strengths and weaknesses. Thus they examine feelings, experiences, expressions, gestures, and behaviors, thoughts, which are often taken for, granted in every day life. Sensitivity training must be used with care. It has proved to be traumatic for some individuals. The frankness and criticism that take place in sensitivity training can be more hurting than helping.

7) Wilderness training: This training method is a recent development. In this method executives and other employees are involved in outdoor-based programs. The objective of such program is to foster individual growth and development, increase self-confidence, risk taking and build leadership, teamwork skills. In most wilderness programs, the learning’s takes place in a wilderness areas involving such activities as river rafting, mountain climbing or scaling obstacles. Group

discussions and short lectures are also included in such programs. There is no ideal or best method of management development. Each organization must design its own particular program based on: • The climate in the organization. • The organizational level for which training is required. • The particular characteristics of the personnel to be developed. • The economic resources that the organization can allot for training and development.

IMPORTANCE OF TRAINING  Organizational training programs are very costly. When an employee is being trained, not only the organization spending money on him but it is also losing in terms of manpower as the employee is away from work. However despites his loss, good organizations spend a considerable amount of time, effort and money to train their employees. They feel that training of employees is an investment, which will reap benefits and profits for the organization in the future. The major benefits of training are: •

Higher productivity and profits: Trainings improves the knowledge and skills of employees and hence leads to greater efficiency in the work place. The more efficient an employee, the higher will be the production, which in turn will contribute to greater profits for the organization.

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Optimal use of resources: well-trained employees are able to make optimal use of their resources (manpower, materials, machinery and capital.) This helps in reducing cost and time wastages.

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Job satisfaction: Employees who have received training and know their job well are a confident lot. This increases their morale and leads to higher job satisfaction.

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Safety: Training reduces errors and accidents on the job by making the employees more competent and able at their work. Training helps to improve safety standards at work.

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Reduces stress: An employee who knows his job well is less likely to experience stress. Besides training in stress and time management enable the employee to cope with frustration and tension.

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Career development: Training prepares the employees for higher positions by developing the necessary skills and attitudes. It improves employee’s prospects for advancement and promotion within the organization. Training prepares the employee for opportunities that will come during his career.

For ref :TRAINING AT SBI  State Bank of India is India’s largest public sector bank. It is the second largest employer of people after the Indian Railways. The bank currently over 2.15 lakhs personnel in various

cadres. SBI has a separate HRD division, which looks in to the training interests of the bank. The SBI training philosophy is proactive, planned and continuous. It is an integral part of organizational development. It seeks to impart knowledge, improve skills and reorient attitudes for individual growth and organizational effectiveness. The HRD mission of SBI is to enable every individual to realize and activate his potential, as to contribute to the achievement of the bank’s goals and derive satisfaction there from. The training wing in SBI consists of nearly 65 training centers established at various places in the country. There are three colleges one each specialized in agricultural development, information and technology and general banking. At the apex level, an academy has been established at gurgaon near Delhi. This academy provides training to the top management of SBI and also to officials from other banks. Every training center is equipped with modern infrastructure facilities and has a suitably trained faculty. The management of the training system is overseen by the Chief General Manager at the central office of the bank in Mumbai. At the training center, various programs are conducted throughout the year for employees in various cadres. The programs are signed in such a manner so as to help develop the employee’s ability to work more efficiently and without mistakes. This ultimately benefits the employee as well as the institution.

The training programs may classified in to three main divisions 1. Core Program 2. Role Related Program 3. Factitional Program

These programs are developed for all categories of employees. They are so designed to provide full knowledge of each subject needed for that category. Each program is designed keeping in mind the following details:  Duration  Target group  Eligibility  Objectives

PERFORMANCE APPRAISAL  Once an employee has been selected, trained and placed on the job, the next step is that of Performance Appraisal. Performance appraisal is the process of evaluating the performance of the employee in the organization. Performance appraisal is the process by which the management finds out how well or how badly the employee is performing on the job. Performance appraisal is beneficial both to the employee as well as to the organization. Performance appraisal is a kind of feedback to the employee. It enables him to understand whether his work is satisfactory r whether he needs any improvement in his performance. Performance appraisal reveal to an employee his strengths and weaknesses, enhancing his self-confidence in some areas and encouraging him to improve his performance in other areas.

Performance appraisal provides feedback to the management whether an employee’s is up to the mark and whether he is contributing to the attainment of organizational goals. Important management decisions such as promotions, transfers, demotions, raises in salary, training and so on are Made on the basis of the performance appraisal reports.

4.5 DEFINITION  According to the Indian National Institute of Personnel management, “performance Appraisal is a technique of assessing, as impartially as possible, the attributes, strengths, weaknesses, capacity and attitudes of individual employee in relation to his  job.” C. D. Fisher describes Performance Appraisal as “the process by which an employee’s contribution to the organizations during a specified period of time is assessed.” Performance appraisal has three basic functions:

1. Performance appraisal seeks to provide adequate feedback to each individual on his or her performance. 2. Performance appraisal serves as a basis for improving or changing behavior towards more effective working habits. 3. Performance appraisal aims to provide data to managers with which they may judge future job assignments and compensation.

MAJOR USES OF PERFORMANCE APPRAISAL  Some of the major uses of performance appraisal are: o

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Personnel Training: Performance appraisal provides information about the employee’s strengths and weaknesses. Once weaknesses in knowledge, skills, and abilities are identified it can be corrected through additional training. However appraisal should be only on job related characteristics and training should focus on those areas of poor performance that attributed to the individual and not due to other factors in the work environment. Thus performance appraisal serves as a diagnostic kit for identifying employee strength and weaknesses. Wage and Salary Administration: Performance appraisals are frequently used to determine the salary raise to be given to the employees. Increases in pay are often linked to the employee’s job performance. It is suggested that “personnel development” and “salary administration” should not be combined in the same appraisal as employees become defensive. This is because: • Employees attach greater importance to raises, as they are more immediate and real. • Personnel development loses its importance if admitting weaknesses means a lower raise. This problem can be overcome by having two appraisals – one for employee development and another for salary raise. It is also suggested that the same person should not conduct the process of employee development and salary fixation.

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Placement: Information through performance appraisal is useful in making placement decisions. Trainee employees are appraised by exposing them to various tasks in the areas of finance, marketing, accounting etc. On the basis of their performance the trainees are placed in the field that they performed the best. Thus performance appraisal is useful in making optional use of employee abilities and talents. Promotions: Performance appraisal is helps in identifying the better performing employees. It helps us to compare the performance of the employees. The performance appraisal is useful in making promotional decisions. However it must be remembered that promotions are not determined by performance only. Seniority (job experience) plays an important role. Experts suggest that the seniority and merit may be used to make promotional decisions. Discharge: Performance appraisal provides evidence of inadequate job performance by the employee. This information can be used to determinate or dismiss employees. In order to prevent lawsuits, organizations must maintain proper records and documents relating to employee’s performance. The organization should be able to demonstrate that the decision to terminate the employee was a fair one and used as the last resort. Job satisfaction: A fair performance appraisal maintains employee initiative and morale leading to greater job satisfaction.

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Feedback: Performance appraisal provides information of an employee’s weaknesses or deficiencies in knowledge, skills and abilities that once identified can be corrected through additional training. Performance appraisal can also be used determine the usefulness of a training program by determining whether an employee’s job performance improved after the training period.

MODERN METHODS OF PERFORMANCE AND  APPRAISAL  The modern methods of performance appraisal focus more on the evaluation of work results and job achievements rather than personality traits. The new methods of performance appraisal are as follows: Management by Objectives: Management Guru Peter Drucker is credited for the development of management by objectives, popularly known as MBO.

MBO involves a mutual agreement between the employee and supervisor on goals to be achieved in a given time. MBO focuses on results – on how well employees accomplish specified goals. The emphasis is on what employee does rather than on what supervisors think of them or perceive their behaviors to be. MBO actively involves employees in their own evaluations. They are not simply graded or rated by others. 

MBO consist of two phases: Goal setting and Performance review

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Goal setting: In this place the employees meet their supervisors individually to determine the goals to be achieved within a specified time and discus ways of reaching those specified goals. The goals are set by mutual agreement between the supervisor and the subordinate. The goals must be realistic, specific and as objective as possible.

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Performance review: In this phase the employee and the supervisor meet after the specified period of time and discuss the extent to which goals were met. The supervisor attempts to solve any problems that the subordinate faces and new goals are set. The supervisor’s role is that of a listener and guide but never that of a critic.

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Assessment Centers: The assessment center in an organization is the place where individuals are assessed in as systematic and scientific manner as possible. An assessment center is a place specially designed equipped for a specific purpose – appraisal. The objective of assessment center is to evaluation of individuals for future growth and development. The evaluations are made not on the job but are based on observations of behavior and on the results obtained in psychological tests. In an assessment center a through and complete evaluation is done of the individual – his strengths, weaknesses and personality characteristics.

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Techniques of assessment

Organizations use different techniques of assessment depending upon their specific needs and requirements. Some of the common techniques of assessment are:

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Role-playing: In this, the candidate acts out the role of a manager in a simulated situation, showing for an example, how he or she would conduct a job interview.

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In – basket test: In this form of evaluation, the candidate is placed in a simulated situation where he is given a ‘basketful’ of items that a manager is likely to encounter on the job such as letters, reports, memoranda, notes and other related materials. The candidate has to respond and make decisions on these items. The candidate is evaluated on the nature of actions he takes.

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A Leadership group discussion – co-operative nature: In this, members of a group are presented with a problem. The individual members of the group are observed on their contributions towards the solution as well as for their interaction with other members of the group.

Behaviorally Anchored Rating Scales (BARS): Smith and Kendall developed the original behaviorally anchored rating scales. These scales are a combination of critical incidents and rating scales.

The development of BARS involves the following steps: Step 1: The supervisors prepare a list of critical incident.

Step 2: The supervisors then group the critical incidents in to small clusters of performance dimensions such as job knowledge, leadership etc. Thus there are number of performance dimensions (usually 5 to 10), each having a number of critical incidents. Step 3: In this step a group of experts are called. The experts are presented with the critical incidents prepared in step one. There is to reassign or classify the critical incidents in to the same performance dimensions. The critical incidents that are reassigned by the majority of experts in the same dimension as that by the supervisors (in step 2) are retained. While those critical incidents about which there are confusion about the dimension to which they belong to discarded. Step 4: The experts then rate each of the “surviving” critical incidents on a scale (of 7 to 9 points) as to how well they represent performance on the given dimension. Those critical incidents for which there is high rater agreement are retained. Those incidents for which there is a low rater agreement are discarded. Step 5: The final form of BARS consists of critical incidents that survived step 3 and step 4. These incidents serve as behavioral anchors for the performance dimension scales anchored by the critical incidents. 

Human Assets accounting: This method is still in the early stages of development. It attempts to measure the monetary value of the human resources of the organization. In this method, valuation is done in terms of costs and contributions of employees. Costs of human resources

consist of expenditure on human resource planning, recruitment etc. Contribution of human resources is the money value of labor productivity or added by human resources. The difference between cost and contribution reflects the performance of employees.

Process of Appraisal Limitations of Appraisal Career Planning & Development: Career Planning is a relatively new personnel function. Established programmes on Career Planning are still rare except in larger or more progessive organisations.

CAREER DEVELOPMENT 

Career development is described as an ongoing process by which individual’s progress through a series of stages, each of which is characterized by a relatively unique set of issues, themes, and tasks. Career development involves two processes: Career planning: It involves helping the employee develop a realistic career plan. Assessing the skills and abilities of the employee with the assistance of an expert does this. Career management: The focus here is on taking the necessary steps to achieve the career plan. The emphasis is on what the organization can do help in the employees development. Aims and Objectives of Career Planning: Career Planning aims at matching individual potential for promotion and individual aspirations with organizational needs and opportunities. Career Planning is making sure that the organization has the right people with the right skills at the right time. In particular it indicates what training and development would be necessary for advancing in

the career altering the career path or staying in the current position. Its focus is on future needs and opportunities and removal of  stagnation, obsolescence, dissatisfaction of the employee. In the process it opens avenues for growth to higher levels of  responsibilities for each adn every employee of the organization through hierarchy of position and training and development activities to equip the individuals with the requisites fir succession.  The principal objective of career planning are: (1) To secure the right man at the right job and at the right time. (2) To maintain a contended team of employees.

Role of Career Planning: (1) It motivates employees to grow. (2) It motivates employees to avail training and development (3) It increases employees loyalty as they feel organization cares about them through career plan for them. So they integrate their goals with the organization goals. (4) Encourage employee to remain in organization. (5) Organization image as better employment market. (6)It contributes to man power planning as well as organizational development and effective achievement of corporate goals. (7) It helps employee in thinking of long term involvement with organisation. (8) Career Planning provides general scenario of career opportunities in organisation. (9) It gives an idea of direction towards growth. (10) Builds pathways for employee.

*Career Stages / Career life cycle of an Employee Individual go through the following stages 1) EXPLORATION: Almost all candidates who start working after college education start around mid-twenties. Many a time they are not sure about future prospects but take up a job in anticipation of rising higher up in the career graph later. From the point of view of organization, this stage is of no relevance

because it happens prior to the employment. Some candidates who come from better economic background can wait and select a career of their choice under expert guidance from parents and well-wishers. 2) ESTABLISHMENT: This career stage begins with the candidate getting the first job getting hold of the right job is not an easy task. Candidates are likely to commit mistakes and learn from their mistakes. Slowly and gradually they become responsible towards the job. Ambitious candidates will keep looking for more lucrative and challenging jobs elsewhere. This may either result in migration to another job or he will remain with the Same job because of lack of opportunity. 3)MID-CAREER STAGE:This career stage represents fastest and gainful leap for competent employees who are commonly called “climbers”. There is continuous improvement in performance. On the other hand, employees who are unhappy and frustrated with the job, there is marked deterioration in their performance. In other to show their utility to the organization, employees must remain productive at this stage. “climbers” must go on improving their own performance. Authority, responsibility, rewards and incentives are highest at this stage. Employees tend to settle down in their jobs and “job hopping” is not common.

4) LATE CAREER: This career stage is pleasant for the senior employees who like to survive on the past glory. There is no desire to improve performance and improve past records. Such employees enjoy playing the role of elder statesperson. They are expected to train younger employees and earn respect from them.

5) DECLINE STAGE: This career stage represents the completion of one‟s career usually culminating into retirement. After decades of hard work, such employees have to retire. Employees who were climbers and achievers will find it hard to compromise with the reality. Others may think of “life after retirement”. (Put the graph ) Essentials to make career planning successful Career Counselling :

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Career counselling may require advising and guiding employees in their possible career paths and direction in which they ought to be heading . Such advising and guiding is called career counselling. Counselling occasionally is necessary for employees due to job and personal problems that subject them to excessive stress. Counselling is discussion od a problem that usually has emotional content with employee in order to help the employee cope with it better. Counselling seeks to improve employee's mental health. People feel comfortable about themselves and able to meet the demands of life when they are good in mental health.

The need for Career Counselling arises when employees have to paln their careers and develop themselves for career progression in the organization. Their main objectives of Career Counselling are :

To help an individual to understand himself more clearly and develop his own thinking and outlook.

To help individuals achieve and enjoy greater personal satisfaction. To help individuals understand the forces and dynamics operating in the system. Employee Retention Techniques: Employees are a valuable asset to any organization. It is essential to protect this vital resource as talented and motivated employees play a crucial role in overall growth and success of the organization. Focusing on employee retention techniques can positively impact the organization as it increases employee productivity, performance, quality of work, profits, and reduces turnover and absenteeism. Effectively creating an engaging environment, recognizing good performance, giving benefits and rewards, promoting mutual respect are some of the ways for effective employee retention. Increase Employee Engagement Effectively implementing employee retention program by increasing employee engagement ensures that the employees are satisfied with their work, take pride in their work, report to duty on time, feel responsible for their job, feel valued for their contributions, and have high job satisfaction. As employees actively focus on their work, it increases the productivity levels in the organization and leads to improvement in several associated areas. Employee engagement ensures that the employees have a clear understanding of their roles and responsibilities in the organization. Increasing employee engagement helps to develop emotional connection, enthusiasm among the employees that promotes teamwork and healthy environment at the workplace. Motivate Employees Motivating employees by offering them better opportunities for career development can help in employee retention. Giving rewards, recognitions, promotions, and appreciation can motivate them to increase their productivity, commitment to work, and loyalty to the organization. They feel that their contributions are valued in the organization. Giving incentives, pay hikes, bonuses can also help to motivate employees. Recognizing their contributions and aspirations motivates them to work productively and increases his confidence that helps in their retention.

Focus On Team Building Promoting team culture helps to actively involve all employees in achieving the goals and in overall success of the organization. Promoting team building imbibes a sense of belongingness among them that they are a part of larger goals or objectives of the organization. Team building promotes team work and team effort that help them to tackle work pressure and thus provide a competitive advantage to organization. Focusing on team building activities can help to reduce workplace conflicts between team members as they work in a team. Organizing team building games, seminars, outdoor events help to promote team spirit, unity, and reduce stress. Recognition of Performance Recognition of performance of employees is an effective method of employee retention. Although monetary compensation can act as a motivating factor, openly recognizing the performance, initiative, and good work increases the morale and motivates the employee to work more productively. Appreciating the performance motivates the employee and they feel valuable within the organization. This helps in employee engagement and to increase the productivity levels. A satisfied employee knows clearly what is expected from him every day at work. Changing expectations keep people on edge and create unhealthy stress. They rob the employee of internal security and make the employee feel unsuccessful. I’m not advocating unchanging jobs just the need for a specific framework within which people clearly know what is expected from them. The quality of the supervision an employee receives is critical to employee retention. People leave managers and supervisors more often than they leave companies or jobs. It is not enough that the supervisor is wellliked or a nice person, starting with clear expectations of the employee, the supervisor has a critical role to play in retention. Anything the supervisor does to make an employee feel unvalued will contribute to turnover. Frequent employee complaints center on these areas. --lack of clarity about expectations, --lack of clarity about earning potential, --lack of feedback about performance, --failure to hold scheduled meetings, and

--failure to provide a framework within which the employee perceives he can succeed. T he ability of the employee to speak his or her mind freely within the organization is another key factor in employee retention. Does your organization solicit ideas and provide an environment in which people are comfortable providing feedback? If so, employees offer ideas, feel free to criticize and commit to continuous improvement. If not, they bite their tongues or find themselves constantly "in trouble" - until they leave. Talent and skill utilization is another environmental factor your key employees seek in your workplace. A motivated employee wants to contribute to work areas outside of his specific job description. How many people could contribute far more than they currently do? You just need to know their skills, talent and experience, and take the time to tap into it. As an example, in a small company, a manager pursued a new marketing plan and logo with the help of external consultants. An internal sales rep, with seven  years of ad agency and logo development experience, repeatedly offered to help. His offer was ignored and he cited this as one reason why he quit his  job. In fact, the recognition that the company didn't want to take advantage of his knowledge and capabilities helped precipitate his job search.

The perception of fairness and equitable treatment is important in employee retention. In one company, a new sales rep was given the most potentially successful, commissionproducing accounts. Current staff viewed these decisions as taking food off their tables. You can bet a number of them are looking for their next opportunity. Succession Planning: Succession planning is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.

Benefits of Succession planning:

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Prepares current employees to undertake key roles Develops talent and long-term growth Improves workforce capabilities and overall performance Improves employee commitment and therefore retention Meets the career development requirements of existing employees Improves support to employees throughout their employment Counters the increasing difficulty of recruiting employees externally Focuses on leadership continuity and improved knowledge sharing Provides more effective monitoring and tracking of employee proficiency levels and skill gaps Decreases the high costs of external recruiting

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Identifying roles for succession; Developing a clear understanding of the capabilities and competencies required to undertake those roles; Identifying employees who could potentially fill and perform highly in such roles; and Preparing and developing employees to be ready for advancement into each identified role.

Unit IV Participation Management Levels of participative Management • • •

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Information. The least you can do is tell people what is planned. Consultation. You offer a number of options and listen to the feedback you get. Deciding together. You encourage others to provide some additional ideas and options, and join in deciding the best way forward. Acting together. Not only do different interests decide together what is best, but they form a partnership to carry it out. Supporting independent community initiatives. You help others do what they want ñ perhaps within a framework of grants, advice and support provided by the resource holder.  No one level is intended to be 'better' than another - it is a matter of horses for  courses, and what is appropriate in any situation.

TRADE UNION MOVEMENT IN INDIA

All of the organized activity of wage-earners to better their own conditions their own conditions either immediately or in the more or less distant future.” • Labour movement implies in some degree, a community of outlook, it is an organization, or rather many forms of organizations based upon the sense of common status and a common need for mutual help. • A trade union is an essential basis of a labour movement for without cannot exist, because trade unions are the principal schools in which the workers learn the lesson of self-reliance and solidarity. • The trade union movement on the other hand, started after 1918, when the workers formed their associations to improve their conditions. It is, thus, a part of the ‘labour movement’, which is a much wide term. Why the Trade Union Movement? •

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The main elements in the development of trade unions of workers in every country have been more or less the same. The setting up of large-scale industrial units, created conditions of widespread use of machinery, new lines of production, and brought about changes in working and living environment of workers, and concentration of industries in large towns. It was this labour protest on an organized scale, through the support of some philanthropic personalities, that organized labour unions came to be formed.

Growth and Development of the Trade Union Movement Social Welfare Period (1875-1918)

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The development of industries led to large-scale production on the one hand and social evils like employment and exploitation of women and child labour and the deplorable workable conditions, the government’s attitude of complete indifference in respect of protection of labour from such evils, on the other. The memorial demanded: i. a complete day of rest every Saturday; ii. Half an hour’s rest at noon; iii. Working hour no longer than 6.30 p.m., which should cease at sunset; iv. The payment to injured worker until they recovered together with suitable compensation, if they are permanently disabled. According to Pandey, the important factors which have helped in the emergence and growth of the industrial labour movement are: While the economic hardships of workers have been present as a latent force, the impetus for the growth of labour movement is provided by the major political currents, particularly movement for national independence. The failure of workers’ initial attempts to organize led them to seek the help of philanthropists and social workers who generally came from classes higher in economic and social status.

Early Trade Union Period (1918-1924) • The year 1918 was an important one for the Indian trade union movement. • The industrial unrest that grew up as a result of grave economic difficulties created by war. The rising cost of living prompted the workers to demand reasonable wages for which purpose they united to take resort to collective action.

The swaraj movement intensified the movement, widened the gulf between the employers and the employees and brought about a mass awakening among the workers demanding racial equality with their British employers. • The success of the Russian Revolution of 1917 created a revolutionary wave of ideas and a new self-respect and enlightenment, and added momentum to the feeling of class-consciousness among laborers. • The establishment of the I.L.O., in 1919, gave dignity to the working class and also an opportunity to send a delegation to the annual conference of this body. • Immediately after the war many Indian soldiers in the British army were demobilized and into the labour market. • The non-co-operative movement of Gandhiji during 1920-21 and his support to the demands of industrial labour also greatly influenced the working class movement. Left-Wing Unionism Period (1924-1934) • In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction and imprisonment of many communist leaders. The rapid growth of the trade unionism was facilitated by several factors, such as: • The growth of anti-imperialist national movement; • The brutal violence and repressive measures let loose by the British government, particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrests and imprisonment of national leaders and Satyagrahis, • The phenomenal profits earned by the capitalists in the face of falling real wages during the post-war period Trade Union’s Unity Period (1935-1938) •

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In mid-thirties the state of divided labour movement was natural thought undesirable and soon after the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the basis of ‘a platform of unity’. The division in the Indian labour movement was proving very costly for the Indian working class. In 1933, more than 50,000 workers in Bombay city were thrown out of employment. The unity efforts were synchronized by a popular upheaval as evidenced by the 1937 general elections. According to Punekar, “During the decade 1930-40 Indian trade unionism was a divided house and the average industrial worker kept himself aloof from organized action.” The Post-Independence Period (From 1947 to-date)

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As pointed out earlier, when attempts to restructure the AITUC failed, those believing in the aims and ideals other than those of the AITUC separated from the organization and established the Indian National Trade Union Congress (INTUC) in May, 1947. It reads: “Congressmen in general and particularly those working in the field of labour have found it very difficult to co-operate any longer with the AITUC which has repeatedly been adopting a course completely disregarding, or even in opposition to the declared policy and advice of the Indian National Congress. The HMS was launched ostensibly with a view to “keep the trade union movement free from domination by government and political parties and the methods to be

employed were to be peaceful, legitimate and democratic.” • In 1958, the HMS and the UTUC reached an agreement to create a joint front against the AITUC which was working inroads in their membership. • The post-war period has been made by the trade union movement in India. The most important factors being: • The constant inflow of outside and international influences; • The pressure of trade union rivalries, often based on political or ideological differences; • Government’s Industrial Relations Policy with its provision for compulsory adjudication machinery; • The enactment of labour laws conferring special privileges on registered trade unions; • Desire of workers to unite for safeguarding their interest especially to face harder conditions for labour such as retrenchment, lay-off, etc.; • Attempts made by some employers to set up unions under their influence. Present Scenario of the Trade Union Movement • The Indian trade unions have come to stay now not as ad hoc bodies or strike committees but as permanent features of the industrial society. • The unions succeeded in organizing Central Union Federations which help in the determination of principles, philosophy, ideology and purposes of the unions and give some sense of direction to the otherwise scattered and isolated large number of unions. The unions have achieved a remarkable status where • their voices are heard by the government and the employers; they are consulted on matters pertaining to improvement in conditions of work health and safety, job

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security, wages, productivity, all matters concerning the interests of labour. The trade union rivalries have become sharper in free India. The splitting up of unions and formation of new unions having sympathies with political parties have permitted unions operating at different levels.

The Indian National Trade Union Congress • Origin: • The INTUC came into existence on 4th May, 1948, as a result of the resolution passed on 17th November 1947, by the Central Board of the Hindustan Mazdoor Sevak Sangh, which was a labour leader on the Gandhian Philosophy of Sarvodaya. • Objectives: The aims of the INTUC are: • to establish an order of society which is free from hindrances to an all-round development of its individual members, which fosters the growth of human personality in all its aspects, and which goes to the utmost limit in progressively eliminating social, political or economic exploitation and inequality, the profit motive in the economic activity and organization of society and the anti-social concentration of power in any form; • to place industry under national ownership and control in a suitable form; • to secure increasing association of workers in the administration of industry and their full participation in that control; • to organize society in such a manner as to ensure full employment and the best utilization of its manpower and other resources; • to promote social, civic and political interest of the working class;

to establish just industrial relations; • to secure redressal of grievances, without stoppage of work, by means of negotiation, conciliation, and failing these, arbitration and adjudication; • to take other legislative methods, including strikes or any suitable form of satyagraha, where adjudication is not applied and settlement of disputes within reasonable time by arbitration is not available for the redress of grievances; • to make necessary arrangement for the efficient conduct and satisfactory and speedy conclusion of authorized strikes or satyagraha; • to foster the spirit of solidarity, service, brotherhood, co-operation and mutual help among the workers; • to develop in the workers a sense of responsibility towards industry and the community; • to raise the worker’s standard of efficiency and discipline. All-India Trade Union Congress (AITUC) • Origin: • It was established in 1920 as result of a resolution passed by the organized workers of Bombay and the delegates which met I a conference on 31st October, 1920. • Objectives: The basic objectives of the AITUC are: • to establish a socialist state in India; • to socialize and nationalize means of production, distribution and exchange; • to ameliorate the economic and social conditions of the working class; • to watch, promote, and further the interests, rights, and privileges of the workers in all matters relating to their employment; •

to secure and maintain for the workers the freedom of speech, freedom of press, freedom of association freedom of assembly, the right to strike, and the right to work and maintenance; • to co-ordinate the activities of the labour unions affiliated to the AITUC; • to abolish political or economic advantage based on caste, creed, community, race or religion; to secure and maintain for the workers the right to strike. •

United Trade Union Congress (UTUC) Origin: • Some trade union leaders of the socialist bent met together December 1948 to form a new central organization of labour, called Hind Mazdoor Sabha. • Objectives : • The objectives of the UTUC are: • to establish a socialist society in India; • to establish a workers’ and peasants’ state in India; • to nationalize and socialize the means of production, distribution and exchange; • to safeguard and promote the interests, rights, and privileges to the workers in all matters, social, cultural, economic and political; • to secure and maintain workers’ freedom of speech, freedom of press, freedom of association, freedom of assembly, right to strike, right to work or maintenance and the right to social security; • to bring about unity in the trade union movement. Bhartiya Mazdoor Sangh (BMS) • Origin: •

This union has been the outcome of decision taken by the Jana Sangh in its Convention at Bhopal on 23rd July, 1954. • Objectives: • to establish the Bhartiya order of classless society in which there shall be secured full employment; • to assist workers in organizing themselves in trade unions as medium of service to the motherland irrespective of faiths and political affinities; • the right to strike; • to inculcate in the minds of the workers the spirit of service, co-operation and dutifulness and develop in them a sense of responsibility towards the nation in general and the industry in particular. • The BMS is a productivity-oriented non-political trade You're Reading a Preview union. Its ideological basis is the triple formula: Unlock full access with a free trial. • nationalize the labour; • labourise the industry; Download With Free Trial • industrialise the nation; National Front of Indian Trade Unions (NFITU) • Origin • This union was founded in 1967, with the claim that “this trade union of India is not controlled by any of the political party, employers or government.” • Objectives: • to organize and unite trade unions with the object of building up a National Central Organisation of trade unions, independent of political parties, employers and the government, to further the cause of labour and that of national solidarity security and defence of India, and to make the working people conscious of their right as well as of obligations in all spheres of life; •

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to secure to members of trade unions full facilities of recognition and effective representation of interests of workers and to ensure for the working people fair conditions of life and service and progressively to raise their social, economic and cultural state and conditions; to help in every possible way member trade unions in their fight to raise real wages of the workers; Centre of Indian Trade Union (CITU)

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This union was formed in 1970 when as a result of the rift in the AITUC, some members of the Communist party seceded. About the objectives of the CITU, its constitution says: The CITU believes that the exploitation of the working class can be ended only by socializing all means of production, distribution and exchange and establishing a socialist state, that is, it stands for the complete emancipation of the society from all exploitation. The CITU fights against all encroachments on the economic and social rights of the workers and the enlargement of their rights and liberties including the right to strike, for winning, defending and extending the freedom of the democratic trade union movement. In the fight for the immediate interest of the working class the CITU demands: (a) nationalization of all foreign monopoly concerns who barbarously exploit the working class; (b) nationalization of all concerns owned by Indian monopolists and big industry who garner huge profits at the expenses of the workers, who exploit the people by pegging prices at a high level and who dictate the antilabour and anti-people policies of the government.