Human Resource Management Notes

May 30, 2016 | Author: ptbanerjee4079 | Category: Types, Business/Law
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PAPER 2.3 Human Resource Management


2 PAPER 2.3: HUMAN RESOURCE MANAGEMENT Unit – I Human Resource Management – Definition – Objects and functions – Role and structure of personnel function in organizations – Personnel principles and policies. Unit – II Human Resource Planning – Characteristics – Need for planning – HRP Process – Job analysis – Job design – Job description – Job specification Unit – III The Selection Process – Placement and induction – ‘Training and development – Promotion – Demotions – Transfers – Separation Unit - IV Wage and Salary Administration – Factors – Principles – Compensation plan – Individual – Group – Incentives – Bonus – Fringe benefits – Job evaluation – Wage and salary administration in relation to personal taxation. Unit – V Employee Maintenance and Integration – Welfare and safety – Accident prevention – Administration of discipline – Employee motivation – Need and measures Unit – VI Personnel Records/Reports – Personnel research and personnel audit – Objectives – Scope and importance.

3 UNIT – I Human Resource Management – Definition – Objectives and functions – role and structure of personnel function in organizations – Personnel principles and policies. HUMAN RESOURCES MANAGEMENT – AN INTRODUCTION Management of Men is a Challenging job. In any organisation, “The management of Man” is a very important and challenging job; It is important because it is getting a job done, not of managing but of administering a social system. The management of men is a challenging task because of the dynamic nature of the people. People are responsive; hey feel, think, and act, therefore, they cannot be like a machine or shifted and altered like a template in a room layout. They, therefore, need a tactful handling by management personnel. If manpower is properly utilized, it may prove a dynamic motive force for running an enterprise at its optimum results and also work as an excellence output for maximum individual and group satisfaction in relation to the work performed. Manpower management is a most crucial job because “managing people is the heart and essence of being a manager.” It is concerned with any activity relation to human elements or relations in organisatoin. Material elements, however, are beyond its domain. This view has been rightly summed up by J.M. Deitz (of Chicago). He observes: “A business or an industry can be thought of as an inter-weaving of human elements and material elements, with the human elements as the warp; while inter-locking and inter-weaving with this element are the material elements – the woof of the fabric. The wrap of the fabric is the human element appearing and reappearing, strength giving element holding the entire fabric together, and giving it life and a character of continuity.” A business cannot succeed if this human element is neglected. Importance of Human Resources Management Yodder, Heneman had discussed about the importance of human resource management from three standpoints, viz, social, professional and individual enterprise. (A) Social Significance: Proper management of personnels, enhances their dignity by satisfying their social needs, this it does by: (a) maintain a balance between the jobs available and the jobseekers. According to the qualifications and needs; (b) providing suitable and most productive employment, which might bring them psychological satisfaction; (c) making maximum utilization of the resource in an effective manner and paying the employee a reasonable compensation in pro portion to the contribution made by him; (d) eliminating waste or improper use of human resources, through conservation of their normal energy and health; and (e) by helping people make their won decisions, that are in their interests. (B) Professional Significance: By providing healthy working environment it promotes team work in the employees. This it does by: (a) maintaining the dignity of the employee as a ‘human-beings’ (b) providing maximum opportunities for personnel development; (c) providing healthy relationship between different work groups so that work is effectively performed (d) improving the employee’s working skill and capacity; (e) correcting the errors of wrong postings and proper reallocation work. (C) Significance for Individual Enterprise: It can help the organisatoin in accomplishing its goals by; (a) creating right attitude among the employees through effective motivation; (b) utilizing effectively the avail able human resources; and (c) securing willing co of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualization.


4 Walton (1985), have attempted to define the Human Resource Management as, it is process of stresses mutually between employers and employees in following ways: Mutual goals, mutual influence, mutual respect, mutual rewards, mutual responsibility. The theory is that policies of mutuality will elicit commitment which in turn will yield both better economic performance and greater human development. Beer and Spector (1985) emphasized a new set of assumptions in shaping their meaning of HRM. •

Proactive system wide interventions, with emphasis of ‘fit; linking HRM with strategic planning and cultural change.

People are social capital capable of development.

Coincidence of interest between stakeholders can be developed.

Seek power equalization for trust and collaboration.

Open channel of communication to build trust and commitment

Goal orientation

Participation and informed choice.

Objectives of Human Resources Management One of the basic principles of management is that: all the work performed in an organisatoin should, in some way, directly or indirectly contribute to the objectives of that organisation. This means that the determination of objectives, purposes or goals is of prime importance and is a prerequisite to the solution of most management problems. Objectives are pre determined ends or goals at which individual or group activity in an organisatoin is aimed. The formations of the objectives of an organisation is necessary for the following reasons: i)

Human beings are goal-directed. People must have a purpose to do some work. Announced organizational goals invest work with meaning.


Objectives serve as standards, against which performance is measured.


The setting of goals and their acceptance by employees promotes voluntary co-operation and co-ordination, self-regulated behavior is achieved.


The objectives stand out as guidelines for organsiational performance . They help in setting the pace for action by participants. They also help in establishing the “character” of an organisatoin. Ralph C, Davis has divided the objectives of an organisatoin into two categories: (a) Primary objectives, and (b) Secondary objectives. a. Primary objectives, in the first instance, relate to the creation – and distribution of some goods or ser ices. The Personnel Department assists those who are engaged in production, in sals, in distribution and in finance. The goal of personnel function is the creating of a work force with the ability and motivation to accomplish the basic organizational goals. Secondly, they relate to the satisfaction of the personal objectives of the members of an organisatoin through monetary and non-monetary devices. Monetary objectives include profits for owners; salaries and other compensation for executives; wages and other compensation for employees; rent for the landowners and interest for share/stock-holders. Non-monetary objectives include prestige, recognition, security, status, or some other psychic income. Thirdly, they relate to the satisfaction-of community and social objectives, such as serving the customers honesty promoting a higher standard of living in the community, bringing comfort and happiness to society, protecting women and children, and providing for aged personnel.

5 b. The secondary objectives aim at achieving the primary objectives economically, efficiently and effectively. The fulfillment of the primary objectives is contingent upon: (i)

The economic need for, or usefulness of, the goods and services required by the community/society.


Conditions of employment for all the members of an organisatoin which provide for satisfaction in relation to their needs, so that they may be motivated to work for the success of the enterprise.


The effective utilization of people and materials in productive work.


The continuity of the enterprise.

According to the American Management Association, the objectives of personnel administration may be laid down as follows: (i)

To achieve an effective utilization of human resources in the achievement of organisation goals.


To establish and maintain an adequate organizational structure and a desirable working relationship among all the members of an organisatoin by dividing of organisatoin tasks into functions, positions, jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs/personnel in the organisatoin.


To secure the integration of the individuals and groups with an organisatoin, by reconciling individual/group with those of an organisation in such a manner that the employees feel a sense of involvement,m commitment and loyalty towards it. In the absence of an integration, friction may develop in an organisation. Which may lead to its total failure. Friction produces inefficiency. Friction may result from political aspirations, from difficulties in communication, and from faults inherent in a particular organizational structure. The behaviour of individuals and groups in any organisation also involved frictions- personal jealousies and prejudices and idiosyncrasies, personality conflicts cliques and factions favoritism and nepotism.


To generate maximum individual / group development within an organisatoin by offering opportunities for advancement to employees through training and job education or by effecting or by offering retraining facilities.


To recognize and satisfy individual needs and group goals by offering an adequate and equitable remuneration, economic and social security in the form of monetary compensation, and protection against such hazards of life as illness, old age, disability, death, unemployment etc., so that the employees may work willingly and co-operate to achieve an organization’s goals.


To maintain a high morale and better human relations inside an organisation by sustaining and improving the conditions which have been established so that employees may stick to their jobs for a longer period.

Pre-requisites for the Achievements of the Objectives Setting up the objectives of an organisation may be the fullest contribution of human resources management for the achievement of the organisatoin of long and short term plans and of the operations of the organisation in an environment of high morale and vitality consistent with profit ability and social milieu with the ethical values of society and with the policies and regulations established by the country’s legislature.

To achieve these objectives, the following pre-requisites must be satisfied: i.

Capable people should be picked upon the basis of the qualifications fixed.

6 ii. Individual and group efforts/potentialities must be effectively utilized by providing suitable work opportunities, tools and raw materials, by showing an appreciation of work well done, and by offering better chances for future advancement and training. iii.

Willing co-operation of the people to achieve the objectives must be available by creating such feelings as “people work with us” rather than saying that “people work for us”


The tasks of an organisatoin should be properly divided in accordance with a sound plan into functions and positions, each indicating clear-cut authority, responsibility and duties, as also the relationship of the position with another.


The goals to be achieved should be specially made known to all concerned in the language best understood by them. Specificity and clarity are both important in defining the objectives. The objectives should also be comprehensive.


Since objectives have to be shared by many senior persons in an organisation, a wide-scale enquiry and consolation should be undertaken before their formulation and efforts should subsequently be made to develop a common understanding of the objectives among managers at various levels.


The objectives should be clearly defined, failing which a great deal of confusion may-arise. Without clear-cut objectives, the management of organizational records cannot be kept in balance, and the management of one section may interfere with that of another. Moreover, without clear-cut objective, there can be – not standards by which to evaluate the performance of an individual or that of the whole organisation. Again, an absence of objectives often leads to organizational disaster. On the other hand, the refining or revising of objectives is the most fundamental task of all managers at all levels.


Suitable monetary and non-monetary incentives, in the form of adequate and reasonable pay-packets, service benefits and security against hazards of life and of employment and against the arbitrary actions of supervisors should be to employees. A properly prepared grievance handling procedure and disciplinary plan should also be available. PERSONNEL FUNCTION IN ORGANISATION

Function of personnel management is the process of management of human resources in an organisation and is concerned with the creation of harmonious working relationships among its participants and bringing about their utmost individual development. Such management is concerned with leadership in both groups and ‘individual relationship’ and ‘labour relations’ and ‘personnel management’. It effectively describes the process of planning and directing the application, development and utilization of human resource in employment. In fact, personnel management undertakes all those activities which are concerned with human elements or relations as well as with material elements in an organisation. Whatever functions are listed therein, the main objectives of these function is to bring together expertise in a scientific way and to create attitudes that motivate a group to achieve its goals economically, effectively and speedily. CLASSIFICATION OF FUNCTIONS Various philosophers and experts have generally classified the functions into two major categories, viz., managerial functions and operative functions. Others have classified functions as general and specific functions, and yet others as ‘personnel administration functions’ and ‘Industrial Relation Functions’. Functions have also been classified on the basis of the capacities, or on the basis of authority. This types of classification of functions has been discussed as below:

(a) The General and Specific Functions

7 The ‘General’ type of functions, in the personnel management is required the following steps: (i) to conduct personnel research, (ii) to assist in the programmes of personnel administration (iii) to develop a competent work force, and (vi) to establish and administer varies personnel services delegated to personnel department’ (b) Personnel Administration & Industrial Relations Functions Personnel administration functions relate to the functions of managing people from the lower to the upper level of the organisatoin and embraces policy determination as well as implementation of policies by the personnel at the lower levels. Accordingly, “personnel administration” refers to “creating, developing and utilizing a ‘work group’ involves all types of inter of inter-personnel relationships between superiors sub-ordinates”. The ‘Industrial Relations’ functions, on the other, are “not dire related to the function of ‘managing people’, but refer to interactions between the management and the representatives of the unions”. Such functions involve all activities of employer-employee relationship, such as organisation of the union members, negotiation of contracts, collect bargaining, grievance handling, disciplinary action, arbitration, etc., the purpose of all these being to prevent conflict between the particulars. (c) Functions Classified on the Basis of Capacities Saltonstall suggests two approaches for the development of Line officiates, viz., (a) the “reductive” or “threat approach”; and (b) the “augmentative” or “source of help” approach. The latter approach is more close to “behavioral approach to management.” Thus, according to him: 

The typical staff function are indirectly related to action and characterized by development, consultation, planning, interpretation, evaluation, diagnosis, research, investigation and recommendation and

The typical line functions are related to command action and characterized by direction, control, decisions, enforcement, application, performance and instruction.

(d) Functions According to the Degree of Authority Dale Henning and French made an interesting observation that “The personnel man is described in the text books and journals is like ‘Abominable Snowman’ much talked bout but seldom seen.” They have classified his functions in to three categories thus: (a) Area of maximum authority, e.g., direction of payroll calculations, orientation procedure, transfer rules, etc. (b) Area of combined use of authority and persuasion, e.g., establishment of disciplinary procedure, inter-departmental data gathering, determining the number of participants in a training programmes, etc; and (c) Area of maximum persuasion, e.g., salary changes under the rules of the plant, employment of individuals recommended by the personnel department in other departments, initiating disciplinary action, etc. The functions generally classified as (1) Managerial functions, and (2) Operative functions. 1. Managerial Functions

8 “Management is a multi-purpose organ which has three jobs, two of which are directly related to personnel managing a business: ‘managing managers and managing workers and the work S Lawrence Appley says that “Management is the accomplishment of results through the efforts of other people”. In the opinion of Harold Koontz, “It is the art of getting things done through people and with informally organized groups. In their view, management may be thought of as the process of allocating an organisatoins inputs (human and economic resources) by planning, organizing, directing and controlling for the purpose of producing outputs (goods and services) desired by its customers so that organisation job objectives are accomplished in the process, work is performed with and through organisatoin personnel in an ever changing business environment. (a) Planning is a pre-determined course of action. According to Allen, “it is a trap laid to capture the future” Terry is of the View that “planning is the foundation of most successful actions of any enterprise.” Planning is the determination of the plans, strategies, programmes, policies, procedures, and standards needs to accomplish the desired organisatoin objectives in fact, “planning today avoids crisis tomorrow.” (b) Organizing: After a course of action has been determined, an organisation should be established to carry it out. According to J.c. Massie, “An organisation is a structure, a framework and a process by which a cooperative group of human beings allocates its tasks among its members, identifies relationships and integrates its activities towards common objectives.” In the words of Drucker: “The right organizational structure is the necessary foundation; without it, the best performance in all other areas of management will be ineffectual and frustrated.” (c) Directing (motivating, actuating or commanding) the subordinates at any level is a basic function of the managerial personnel. According to McGregor, “many managers would agree that the effectiveness of their organisatoin would be at least doubled if they could discover how to tap the unrealized potential present in their human resources” (d) Coordinating and Controlling. Coordinating refers to balancing timing and integrating activities in an organisation, so that a unity of action in pursuit of a common purpose is achieved. In the words of Terry, “Coordination deals with the task of blending efforts in order to ensure a successful attainment of an objective.” (e) Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with actions and remedial actions. “it is not just score-keeping. It is not just plotting the course and getting location reports; but rather it is steering the ship.” 2. Operative Functions The operative functions of personnel management are concerned with the activities specifically dealing with procuring, developing, compensating, and maintaining an efficient work force. These functions are at known as service functions. (a) The procurement function is concerned with the obtaining of a proper knd and number of personnel necessary to accomplish an organisation’s goals. It deals with specifically with such subjects as the determination of manpower requirements, their recruitment, selection and placement (comprising activities to screen and hire personnel, including application forms psychological tests, interviews, medical check-up, reference calling), induction, follow-up, transfers, lay-offs, discharge and separation, etc. (b) The development function is concerned with the personnel development of employees by increasing their skill through training so that job performance is properly achieved. Drafting and directing training programmes for all levels of employees, arranging for their on-the-job, office and vestibule-training, holding seminars and conferences, providing for educational and vocational counselling and appraising employee potential and performance are undertaken under this function. (c) The compensation function is concerned with securing adequate and equitable remuneration to personnel for their contribution to the attainment of organizational objectives. Functions related to wage surveys,

9 establishment of job classifications, job descriptions and job analyses, merit ratings, the establishment of wage rates and wage structure, wage pans and policies, wage systems, incentives and profit-sharing plans etc., fall under this category. (d) Integration function After the employee has been procured, his skill and ability developed and monetary compensation determined, the most important, yet difficult of the personnel management is to bring about an “integration” of human resources with organisatoin, and to cope with inevitable conflicts that ensue. “Integration” is concerned with the attempt to effect a reasonable reconciliation of individual, societal, and organisation interests. (e) The maintenance function deals with sustaining and improving the conditions that have been established. Specific problems of maintaining the physical conditions or employees (health and safety measures) and employ service programmes are the responsibility of the personnel department. Flippo rightly says: “The purpose of all of these activities is to assist in the accomplishment of the organization’s basic objectives. Consequently, the starting point of personnel management as of all management must be a specification of those objectives and a determination of the sub-objectives of the personnel function: The expenditure of all funds in the personnel departments can be justified only in so far as there is a net contribution toward company objectives.” CLASSIFICATIONS OF PERSONNEL FUNCTIONS Below are give some important classifications of personnel functions made by experts in the field: Yoder’s Classification: According to Yoder, in a typical industrial relations and personnel department, the principal activities of manpower management are: i)

Setting general and specific management policy for relationships and establishing and maintaining a suitable organisatoin for leadership and co-operation.

ii) Collective bargaining, contract negotiations, contract administration and grievances. iii) Staffing the organisation, finding, getting and holding prescribed types and number of workers. iv) Aiding the Self-development of employees at all levels, providing opportunities for personnel development and growth as well as for requisite skills and experience. v) Incentivating, developing and maintaining motivation for work. vi) Reviewing and auditing manpower management in an organisatoin. vii) Industrial relations research, carrying out studies designed to explain employment behaviour and thereby effecting improvements in manpower management. Yoder and Nelsons’ Classification: On another occasion, on the basis of an enquiry regarding descriptions of 984 employee-relations jobs conducted in 189 companies. Dale Yoder and Robert J. Nelson classified seven functional categories as follows: i.

Departments Administration Programme: Planning, report preparing, policy formulation and general administration.


Employment and Placement: Recruitment, selection, placement, orientation, personnel rating, job analysis and description.


Training – Induction, on-the-job training, supervisory training and management development.


Collective Bargaining: Contract negotiation, contract administration and grievances.


Wage and Salary Administration, Job evaluation, wage and salary surveys.

10 vi. Benefits and Services: Insurance, health, hospitalization, medial care, and retirements plan administration. vii.

Personnel Research: Continuing studied of all employee relations policies, programmes and practices.

Northcott’s Classification: After referring to three types of approach to the task, viz., (a the welfare’ approach, (b) the scientific management influence the industrial relations emphasis, Northcott gives the functions of personnel management thus: 1. Employment; 2. Selection and Training; 3. Employee Services, 4. Wages; 5. Industrial Relations; 6. Health and Safety Education; and 7. Education. Scott, Clothier & Spriegels’ Classification: Scott, Clothier and Spriegel divide the functions of the personnel management into these specific categories, namely: (i) Employment; (ii) Promotion, transfer termination, demotions, and separations; (iii) Formulation and direction of training programmes; (iv) Job analysis and evaluation; (v) Remuneration and incentives; (vi) Health and Sanitation; (vii) Safety and institutional protection; (viii) Financial aids to employees; (ix) Employee service activities; (x) Research, record keeping, reports and follow-up; (xi) Employeeemployer and community cooperation; and (xii) Labour union contracts and co-operation. Kindall’s Classificatoin: A.F. Kindall prescribes the following functions for the personnel management: (i)

To aid in the development of general overall management policies and methods, in the organisation and planning of supervisory control, and in the communication of orders, ideas and inquiries.


To develop throughout the organisatoin an understanding of, and an enthusiasm for, consultative methods of management with tire objectives of: a. Improving leadership and supervision; and (b) Obtaining the participation of operating groups and opportunity for creative analysis and initiative in carrying out their assigned tasks at all levels in the development and administration of the company’s personnel programme.


To aid the executive and supervisory organisation in developing (a) clearly written outlines of functions, authorities, and responsibilities, and (b) simple, workable methods of measurement of their accomplishments.


To formulate, in collaboration with the supervisory and executive organisation policies for personnel administration and to implement those policies approve by the management in accordance with the best plans and practices of personnel administration.


To make certain, in collaboration with the supervisory and executive personnel, that the company’s approved policies and practices of personnel administration are executed properly.


To establish and maintain contacts with labour movement, to keep itself informed and, wherever possible, to participate in all collective bargaining activities, and to advise all the departments of the company on the development of sound labor relations.


To aid in the interpretation of the management’s policies to employees and employees’ point of view and attitude to the management and, in collaboration with the appropriate line personnel to merchandize the company and the jobs to employees.

Carey’s Classification: Carey outlines the common functions of the personnel management as: (1) Organisation for personnel administration; (ii) Administration and supervision; (iii) Employment; (iv) Training employee development; (v) Wage and salary administration; (vi) Force adjustment; (vii) Relation between employees and management; (viii) Hours and conditions of works; (ix) Health and safety; (x) Benefits and employee security matters; (xi) Communication with employees; (xii) Research work; and (xiii) Relations with local business and community organisation. Straus’s and Sayles’ Classification: (i) Recruitment, Selection c Placement: (a) Contact with and evaluation of advertising media, employment agencies, including State employment services, college and school recruiting; (b) Screening and testing techniques, including physical examination; (c) Assistance for in-company transfer, career

11 development (d) Assistance for lay-offs and plant closing through job searches for redundant personnel; (e) Labour market surveys and projection of potential shortages; and (f) Manpower planning, projecting future company needs. (ii) Job Analysis, job Description and Job Evaluation: (a) Development of methods that will facilitate personnel placement and assignment of money values to skill and experience, (b) Development of promotional ladders by means of job analysis; and (c) Position guides for organizational planning and information for new placements. (iii) Compensation and Appraisal Plans: (a) Design and implementation of personnel appraisal plans; (b) Wage administration (c) Control of merit increases; (d) Design and installation of incentive and bonus plan and (e) Administration of deferred compensation plans such as profit sharing and bonus plans. (iv) Employment Records: (a) Maintenance of job histories, skill inventories and aptitude and education information; and (b) Maintenance of wage and hour records, output records, overtime, vacation payment incentive earning. (v) Employee Benefit Programmes: (a) Administration of life insurance, pension and health and welfare benefits; (b) Approval of action, disability and compensation payments; (c) Suggestion and saving plans, credit union administration; (d) Recreation and athletic programmes; (e) Cafeteria, employee clubs; (f) Company medical services, first aid, preventive medicine; (g) Community referrals (psychiatric, alcoholic), and (h) Counselling service. (vi) Special Services Safety inspection: (a) Safety plans and controls; (b) Company guards and protection services, including fire-fighting; (c) Staff reception areas; and (d) Communication services, photography, printing house organs, policy manuals, new releases and instructional manuals. FUNCTIONS OF PERSONNEL MANAGEMENT On the basis of the various functions which the personnel management generally undertakes, the functional areas of personnel management may be set forth as below: I.

Organizational Planning, Development and Task Specification


Staffing and Employment;


Training and Development;


Compensation, Wage and Salary Administration;


Motivation and Incentives; Employee Services and Benefits; Employee Records; Labour or Industrial Relations; and Personnel Research and Personnel Audit.

I. Organizational Planning, Development and Task Specification “Organizational planning” is concerned with the division of all the tasks to be performed into manageable and efficient units (departments, divisions or positions) and with providing for their integration. Both differentiation and integration are vital for the achievement of pre-deter mined goals. (i)

A determination of the needs of an organisation in terms of a company’s short and long-term objectives, utilization of technology (industrial, engineering, industrial psychology, and mechanical engineering) of production, deciding about the nature of product to be manufactured, keeping in view the external environment and public policy.

12 The planning, development and designing of an organizational structure through the fixing of the responsibility and authority of the employees, so that organizational goals may be effectively achieved.

(ii) (iii)

Developing inter-personal relationship through a division of positions, jobs and tasks; the creating of a healthy and fruitful inter-personal relationship; and the formation of a homogeneous; cohesive and effectively interacting informal group.

II. Staffing and Employment The staffing process is a flow of events which results in a continuous manning of organizational positions at all levels – from the top management to the operative level. This process includes manpower planning, authorization for planning, developing sources of applicants, evaluation of applicants, employment decisions, placement induction and orientation, transfers, demotions, promotions and separations, retirement, lay-off, discharge, resignation, disability, and death, (i)

Manpower planning is a process of analyzing the present and future vacancies that may occur as a result of retirements, discharges, transfers, promotions, sick leave of absence, or other reasons, and an analysis of present and future expansion or curtailment in the various departments. Plans are development of present employees, for advertising openings, or for recruiting and hiring new personnel with appropriate qualifications.


Recruitment is concerned with the process of attracting qualified and competent for different jobs. This includes the identification of existing sources of the labour market, the development of new sources, and the need for attracting a large number of potential applicants so that a good selection may be possible.


Selection Process is concerned with the development of selection policies and procedures and the evaluation of potential employees in terms of job specifications. This process includes the development of application blanks, valid and reliable tests, interview techniques, employee referral systems, evaluation and selection of personnel in terms of job specifications, the making up of final recommendations to the line management and the sending of offers and rejection letters.


Placement is concerned with the task of placing an employee in a job for which he is best fitted, keeping in view the job requirements, his qualifications and personality needs.


Induction and orientation is meant the introduction of an employee to the organisatoin and the job by giving him all the possible information about the organization’s history, objectives, philosophy, policies, future development opportunities, products, goodwill in the market and in the community, and by introducing him to other employees with whom and under whom he has to work.


Transfer process is concerned with the placement of an employee in a position in which his ability can be best utilized. This is done by developing transfer policies and proc counselling employees and line management on transfers and evaluating transfer policies and procedures.


Promotion is concerned with rewarding capable employees by putting them in higher positions with more responsibility and hither pay. For this purpose, a fair, just and equitable promotion policy and procedure have to be developed; line managers and employees have to be advised on these policies, which have to be evaluated to find out whether they have been successful.


Separation process is concerned with the serving of relation ship with an employee on grounds of resignation, lay-off, death, disability, discharge or retirement. Exit interviews of employees are arranged, causes of labour turnover are to be analyzed and advice is given to the line management on the causes of and reduction in labour turnover. A number of device and sub-systems are used in the systems designs to manage the staffing process. These are: i)

Planning tables and charts;

13 ii) Application blanks; iii) Interviews; iv) Psychological tests; v) Reference checks; vi) Physical examination; vii) Performance reviews; and viii)

Exit interviews

III. Training and Development It is a complex process and is concerned with increasing the capabilities of individuals and groups so that they may contribute effectively to the attainment of organizational goals. This process includes: (i) The determination of training needs of personnel at all levels, skill training employee counselling, and programmes for managerial, professional and employee development; and (ii) Self-initiated development activities (formal education), during off-hours (including attendance at school/college/professional institutes); reading and participation in the activities of the community. IV. Compensation, Wage and Salary Administration It is concerned with the process of compensation directed towards remunerating employees for services rendered and motivating them to attain the desired levels of performance. The components of this process are: i.

Job Evaluation through which the relative worth of a job is determined. This is done by selecting suitable job evaluation techniques, classifying jobs into various categories and then determining their relative value in various categories.


Wage and salary programme which consists of developing and operating a suitable wage and salary programme, taking into consideration certain facts such as the ability of the organisation to pay, the cost of living, the supply and demand conditions in labour market, and the wage and salary levels in other firms. For developing a wage and salary programme, wage and salary surveys have to be conducted, wage and salary rates have to be determined and implemented, and their effectiveness evaluated.


The incentive compensation plan includes non-monetary incentives which have to be developed, administered and reviewed from time to time with a view to encouraging the efficiency of the employee.


The performance appraisal is concerned with evaluating employee performance at work in terms of predetermined norms/ standards with a view to developing a sound system of rewards and punishment and identifying employees eligible for promotions. For this purpose, performance appraisal plans, techniques and programmes are chalked out, their implementation evaluated, and report submitted to the concerned authorities.


Motivation is concerned with motivating employees by creating conditions in which they may get social and psychological satisfaction. For this purpose, a plan for non-financial incentives (such as recognition, privileges, symbols of status) is formulated; a communication system is developed, morale and attitude surveys are undertaken, the health of human organisatoin diagnosed and efforts are made to improve human relations in the organisation. The line management has to be advised on the implementation of the plan and on the need, areas and ways an means of improving the morale of employees.

V. Employee Services and Benefits

14 These are concerned with the process of sustaining and maintaining the work force in an organisation. They include: (i)

Safety provision inside the workshop. For this purpose, policies, techniques, and procedures for the safety and health of the employees are developed; the line management is advised on the implementation and operation of safety programmes; training has to be given to first line supervisors and workers in safety practices; the causes of accidents have to be investigated and data collected on accidents; and the effectiveness of the safety programmes evaluated periodically.


Employee counselling is the process through which employees are given counsel in solving their work problems and their personal problems. The line management has to be advised on the general nature of the problems which the employees may face from time to time.


Medical services include the provision of curative and preventive medical and health improvement facilities for employees, free or otherwise. A periodical medical check-up of employees, training in hygienic and preventive measures are undertaken.


The recreational and other welfare facilities include entertainment services like film shows, sports and games; and housing, educational, transport and canteen facilities, free or at subsidized rates. Suitable policies and programmes are framed and efforts are made to administer these services satisfactorily. The effectiveness of such programmes has also to be evaluated.


Fringe benefits and supplementary items are made available to employees in the form of: a. Old age survivor’s and disability benefits, unemployment and workmen’s compensation; b. Pensions, gratuities and such other payments as are agreed upon – death benefits, sickness, accident and medical care, insurance, expenses of hospitalization, voluntary retirement benefits. c. Paid rest periods, lunch periods, wash-up time, travel time, get – ready time; d. Payments for time during which not work is done – paid vacation or bonus in lieu of vacation, payment for holidays, paid sick and maternity leave; and e. Profit-sharing benefits, contribution to employees’ provident funds, employees educational expenditure and special wage payments ordered by the courts.

VI. Employee Records In employee records complete and up-to-date information is maintained about employees, so that these that that is, the records may be Utilized, if need be, at the time of making transfer/promotions, giving merit pay, or sanctioning leave. Such records include information relating to personal qualifications, special interests, aptitudes, results of tests and interviews, job performance, leave, promotions, rewards and punishments. VII. Labour Relations By labour relations is meant the maintenance of healthy and peaceful labour-management relations so that production/work may go on undisturbed. (i)

Grievance handling policy and procedures are developed, after finding out the nature and causes of grievances, and locating the most delicate areas of dissatisfaction.


Rules and regulations are framed for the maintenance of discipline in the organisation, and a proper system of reward and punishment is developed.


15 Efforts are made to acquire a knowledge of, and to observe and comply with, the labor laws of the country and acquaint the line management with the provisions which are directly concerned with organisatoin. Collective bargaining has to be developed so that all the disputes may be settled by mutual discussions without recourse to the law court. Such bargaining negotiating and administering agreement relating to wages, leave, working conditions and employee employer relationship.

VIII. Personnel Research and Personnel Audit This area is concerned with: (i)

A systematic inquiry into any aspect of the board question of how to make more effective an organisatoin’s personnel programmes – recruitment, selection, development, utilization of, and accommodiation to, human resources;


Procedures and policies and finding submitted to the top executive.


Data relating to quality, wages, productivity, grievances absenteeism, labour turnover, strikes, lock-outs, accidents etc., which are collected and supplied to the top management so that it may review, alter or improve existing personnel policies, programmes and procedures;


Morale and attitude surveys.

PERSONNEL PRINCIPLES AND POLICIES The dictionary meaning of “policy” is a “plan of action” and that “plan” is a policy. Policy and planning are, therefore, synonymous. “A policy,” says Flippo, “is a man-made rule of pre-determined course of action that is established to guide the performance of work to ward the organisatoin objectives. It is a type of standing plan that serves to guide subordinates in the execution of their tasks.” According to Calhoon Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. They furnish the general lies in an organization’s values, philosophy, concepts and principles.” “Policies are statements of the organization’s over-all purposes and its objectives in the various areas with which its operations are concerned – personnel, finance, and production marketing and so on.” Yoder observes: “A policy is a per-determined, selected course established as a guide towards accepted goals and objectives… They establish the framework of guiding principles that facilitate delegation to lower levels and permit individual managers to select appropriate tactics or programmes. In contrast to these, personnel policies are those that individuals have developed to keep them on the rack towards their personnel objectives. Management policies are developed by working organisatoins to keep them on course headed and directed toward their organizational objectives. These define the intentions of the organisatoin and serve as guidelines to give consistency and continuity to total operations. Thus, personnel policies refer to principles and rules of conduct which “formulate, redefine, break into details and decide a number of actions” that govern the relationship with employees in the attainment of the organisation objectives. Personnel policies are: (i) The key-stone in the arch of management and the life-blood for the successful functioning of the personnel management because, without these policies, there cannot be any lasting improvements in labour management relations; (ii) The statements of intention indicating and agreement to a general course of actions, indicating specifically what the organisation proposes to do and, thus, suggests the values and viewpoints which dominate the organization’s actions; and (iii) A positive declaration and command to an organisation. They translate the goals of an organisation into selected routes and provide general guidelines that both prescribe and proscribe programmes which, in turn, dictate practices and procedures.

16 Aims and Objectives of Personnel Policies A management’s personnel policy should have two types of objectives, general and specific. The statement of general objectives should express the top management’s basic philosophy of human resources and reflect its deep underlying convictiosn as to the importance of people in an organisatoin and of the management activity which deals with people. The statement of specific objectives should refer to the various activities of personnel administration connected with staffing, training, developing, wage and salary administration, motivation, employee services and benefits, employee records, labour relations and personnel research. The aims of personnel policies should be/are: (i)

To enable an organisatoin to fulfill or carry out the main objectives which have been laid down as the desirable minima of general employment policy;


To ensure that its employees are informed of these items of policy and to secure their co for their attainment;


To provide such conditions of employment and procedures as will enable all the employees to develop a sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective manner.


To provide and adequate, competent and trained personnel for all levels and types of management;


To protect the common interests of all the parties and recognize the role of trade unions in the organisation;


To provide for a consultative participation by employees in the management of an organisation and the framing of conditions for this participation, which however shall not take place in technical, financial or trading policy.


To provide an efficient consultative service which aims at creating mutual faith among those who work in the enterprise. a. By developing management leadership which is bold and imaginative and guided and by moral values; b. By effectively delegating the human relations aspects or personnel functions to line managers; c. By enforcing discipline on the basis of co-operative understanding and a humane application of rules and regulations; and d. By providing and a humane application of rules and regulations; and e.


To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the management and the workers, by developing suggestion plans, joint management councils, work committees, etc., and by performance appraisal discussions;


To provide security of employment to works so that they may not be distracted by the uncertainties of their future;


To provide an opportunity for growth within the organisation to persons who are willing to learn and undergo training to improve their further prospectus;


To provide for the payments of fair and adequate wages and salary to workers so that their healthy cooperation may be ensured for an efficient working of the undertaking;


To recognize the work and accomplishments of the employee by offering non-monetary incentives; and


17 To create a sense of responsibility, on the part of those4 in authority, for the claims-of employees as human beings, who should be guaranteed production of their fundamental rights and offered enough scope developing their potential.

Need for Personnel Policy Personnel policies need be specifically created because of the following reasons: (i)

The basic need and requirements of both an organisation and its employees require deep thought. The management is required to examine its basic-convictions as well as give full consideration to practices in other organisatoins.


Established policies ensure consistent treatment of all personnel throughout an organisatoin. Favoritism and discrimination are thereby minimized.


A certainly of action is assured even though the top management personnel may change. The tenure of the office of any manager is finite and limited; but the organisation continues and along with it continue the policies; and this continuity of policies promotes stability in an organisation.


Because they specify routes towards selected goals, policies serve as standards or measuring yards for evaluating performance. The actual results can be compared with the policies to determine how well the members of an organisation have lived up to their profees intentions.


Sound policies help to build employee enthusiasm and loyalty. This is specially true when they reflect established principles of fair play and justice, and when they help people to grow within an organisation.


Policies are “control guides for delegated decision making”. They seek to ensure consistency and uniformity in decisions on problems, “that recur frequently and under similar, but not identical, circumstances.’

Principles of Personnel Policies In designing personnel policies, the management must balance the needs, goals, objectives and values of both the employees and the employees. Since these policies are rules of conduct, they are based on the following principles. (i)

Put the right man in the right place by a car selection and placement to make sure that the is physically, mentally and temperamentally fit for the job he is expected to do and that the new employee may be reasonably expected to develop into a desirable employee, so that “there will be the minimum number of square pegs in round holes.”


Train everyone for the job to be done, so that they qualify for better jobs, so that their accomplishments are limited to their ambitions and abilities, so that they do their present work very efficiently.


Make the organisation a co-ordinated team through a proper co ordinate and administration of different departments and divisions, that there is a minimum amount of friction and unproductive or unnecessary work. This calls for proper planning and organisation, control and direction of the entire organisation without destroying the initiative of the individual employee.


Supply the right tools and the right conditions of work, for the better the tools, facilities and working conditions, the larger the output produced with the same human effort at lower costs so that, ultimately the higher wages may be paid and more good jobs provided.


Give security with opportunity, incentive, recognition. In order that he may stick to his job, each employee should have sound incentives for work, such as fair compensation, recognition for results achieved, reasonable security, and opportunity and hope for advancement in the organisation.


18 Look ahead, plan ahead for more and better things: Superior products should be produced and distributed, and these should be attractive and meet the demands of consumers. This calls for research and a policy of continuing product planning and development.

Types of Personnel Policies There are various types of policies. Jucium identifies two types, viz., functiona or organisation grouping of policies; and the centralized policies. The its pre-grouping of policies are those policies which are grouped for different categories of personnel, e.g. for the management dealing with personnel planning, organizing and controlling or for management dealing with personnel planning, organizing and controlling or for management concerned with functions of procuring developing and utilizing manpower. The centralized policies are framed for companies with several locations. They are formulated at the head office and apply through out the organisatoin. Policies may also be classified as major and minor. Major policies pertain to the over-all objectives, procedures and control which affect an organisatoin as a whole. They cover in a general way nearly every phase of an enterprise and its product and methods of financing, its organizational structure, plant location, its marketing and personnel. Such policies are formulated by the Board of Directors, and a framework is established within which major executive fit the remaining policies necessary to carryout the major objectives of an organisation. Essential Characteristics/ Tests of a Sound Personnel Policy The main features of a good personnel policy are: (i)

The statement of any policy should be definite, positive, clear and easily understood by everyone in the organisatoin so that what it progress to achieve is evident.


It should be written in order to preserve it against loss, to stimulate careful consideration before its, formulation and to prevent the promulgation of numerous, differing and temporary oral policies from multiple sources.


It must be reasonably stable but not rigid, i.e., it should be periodically reviewed, evaluated, assessed and revised and shluld, there fore, be in tune with the challenge of changes in the environment and should have a built-in resilience for adjustment from time to time.


It must be supplementary to the over-all policy of an organisatoin, for if departmental policy is made such as to come into conflict and violate the company policy, it would be tantamount to insubordinations. Peter Drucker has observed: “The policies of an enterprise have to be balanced with the kind of reputation an enterprise wants to build up with special reference to the social and human needs, objectives and values.


It should indicate that the management knows that workers prefer to deal with the management on an individual basis.


It should recognize the desire of many workers for recognition as groups in many of their relationships.


It should be formulated with due regard for the interests of all the concerned parties – the employees and the public community.


It should be the result of a careful analysis of all the available.


It must provide a two-way communication system between the management and the employees that the latter are kept informed of the latest developments in the organisatoin and the employers are aware of the actions and reactions of the employees on particular issues.


It should be consistent with public policy, i.e., with the spirit rather than the letter of the law, so that the intentions and settled course of an organisation are appreciated in terms of public opinion from the standpoint of national, economic and social justice for the employees and for the community at large.


If should be generally known to al interested parties.


19 It must have not only the support of the management but to the co-operation of employees at the ship floor level and in the office.


Before evolving such a policy, trade unions should be consulted. In matters of industrial relations; and the role of trade unions should be restricted only to this areas.


It should be progressive and enlightened, and must be consistent with professional practice and philosophy.


It must make a measurable impact, which can be evaluated and qualified for the guidance of all concerned, especially in the field of the three R’s of personnel management viz., recruitment, retainment, and retirement.


It should be uniform throughout the organisatoin, though, in the light of local conditions, slight variations may be permitted in specific policies relation to staffing, compensation, benefits and services.


It should have a sound base in appropriate theory and should be translate into practices, terms and peculiarities of every department of an enterprise.

(xviii) Except in rare cases, policies should not prescribe detailed procedures. Sources of Personnel Policies Policies stem from a wide variety of places and people. The are not created in a vacuum but are based on a few principal sources, which determine the content and meaning of policies. There are: (i) The past practice of an organisation; (ii) The prevailing practice among sister concerns in the neighborhood and throughout to country in the same industry; (iii) The attitudes, ideals, and philosophy of the Board of Directors, top management and middle and lower management. (iv) The knowledge and experience gained from handling day-to-day personnel problems. (v) Employees suggestions and complaints: (vi) Collective bargaining programmes; (vii)

State the national legislation.


Changes in the company


International forces, such as may operate in times of wars;


The culture of the plant and its technology, its business environment, its social and political environment;


The extent of unionism;


The attitudes and social values of labour;


The ethical points of view or the social responsibility of the organisatoin toward the public; and


The goals of the organisatoin.

Minor policies, on the other hand, relationships in segment of an organisation.

20 UNIT – II Human Resource Planning – Characteristics – Need for planning – HRP Process – Job analysis – Job design – Job description – Job specification HUMAN RESOURCES PLANNING Importance of Human Resources The concepts of “Manpower” or “human resource” is meant as “the total knowledge, skills creative abilities, talents and aptitudes of an organization’s work force, as well as the values, attitudes and benefits of an individual involved…… It is the sum total of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the employed persons.” Of all the “Ms” in the management (i.e., the management of materials, machines, methods, money, motive power), the most important is “M” for men or human resources. In any organisation, Human resources are utilized to the maximum possible extent in order to achieve individual and organizational goals. An organization’s performance and resulting productivity are directly proportional to the quantity and quality of its human resources. MANPOWER PLANNING DEFINED “Manpower Planning and “human resource planning” are synonymous. In the past, the pharse manpower planning was widely used; but not the emphasis is on human resource planning which is more broad- based. Human resource or manpower planning is “the process by which a management determines how an organisation should move from its current manpower positon to its desired manpower position. Through planning, a management strives to have the right number and the right number and the right kinds of people at the right places, at the right time, to do things which result in both the organisation and the individual receiving the maximum long-range benefit.” Coleman has defined human resource or manpower planning as “the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organisation. Stainer defines manpower planning as “Strategy for the acquisition, utilization, improvement, and preservation of an enterprise’s human resources. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources of manpower” According to Wickstrom, human-resources planning consists of a series of activities, viz., (a) Forecasting estimates based upon the specific future plans of a company; (b) Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally; (c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and (d) Planning the necessary programmes of requirements, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met. Human resources planning is a double-edged weapon. If used properly, it leads to the maximum utilization of human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches of for the management personnel. Therefore, for the success of an enterprise, human resource planning is a very important function, which can be neglected only at hits own peril. It is as necessary as planning for production, marketing, or own peril, it is as necessary as planning for production, marketing, or capital investment. NEED FOR HUMAN RESOURCE PLANNING

21 The necessity of Human resource planning for all organizations is for following reasons: (i)

To carry on its work, cash organisation needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning.


Since a large number of persons have to be replaced who have grown old, or who retire, die or become incapacitated because of physical or mental ailments, there is a constant need for replacing such personnel otherwise the work would suffer.


Human resources planning is essential because of labor turnover which is unavoidable and even beneficial because it arises from factors which are socially and economic ally sound such as voluntary quits, discharges, marriage, promotions, or factors such as seasonal and cyclical fluctuations in business which cause a constant ebb and flow in the work force in many organisation.


In order to meet the needs of expansion programmes which become necessary because of increase in the demand for goods and services by a growing population, a rising standard of living – which calls for larger quantities of the same goods and services as also for new gods; the competitive position of a firm which bring it more business arising from improvements effected in the slump period; and the rate of growth of the organisation, human resource planning is unavoidable.


The nature of the present work force in relation to its changing needs also necessitates are recruitment of new labour. To meet the challenge of a new and changing technology and new techniques of production, existing employees need to the trained or new blood injected in an organisation.


Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be redeployed; and if there is shortage, it may be made good. Stainer recommends the following nine strategies for the man power planners:

(a) They should collect, maintain and interpret relevant information regarding human resources. (b) They should report periodically man power objectives, requirements and existing employment and allied features of manpower. (c) They should develop procedures and technique to determine the requirements of different types of manpower over period of time form the standpoint of organisation’s goals; (d) They should employ suitable techniques leading to effective allocation of work with a view to improving manpower utilization; (e) They should conduct research to determine factors hampering the contribution of the individuals and groups to the organisatoin with a view to modifying or removing these handicaps. (f) They should develop and employ methods of economic assessment of human resources reflecting its features as income-generator and cost and accordingly improving the quality of decisions affecting the manpower. (g) They should evaluate the procurement, promotion and retention of the effective human resources; and (h) They should analyse the dynamic process of recruitment, promotion and loss to the organ is an control these processes with a view to maximizing individual and group performance without involving high cost.

Process of Human Resource Planning

22 Human resource planning process is one of the most crucial complex and continuing managerial functions. It may be rightly regarded as a multi-step process of human resource planning such as: (a) Deciding goals or objectives; (b) Estimating future organizational structure and manpower requirements; (c) Auditing human resources; (d) Planning job requirements and job descriptions; (e) Developing a human resource plan. LongRange Objectives and Plan

Short term goals, plans programmes and budgets

Overall requirements for human resources

Work force requirements by occupational categories job skills, demographic

Inventory of present human resources

Inventory by occupational categories, job skills, demographic characterisitcs

Net New human resources requirements

Needed replacement or additions

Action programmes for recruiting & selecting needed personnel

Proced for evaluation effectiveness of human resources planniration

Plans for developing, upgrading, transferring, in recruitment, and selecting needed people

Fig. Human Resource Planning System (A)

Objectives of Human Resources Planning Human resource planning fulfils individual, organizational and national goals; but, according to Sikula, “the ultimate mission or purpose is to relate future human resources to future enterprise needs so a to maximize the future return on investment in human resources. “In effect, the main purpose is one ‘ of matching or fitting employee abilities to enterprise requirements, an emphasis on future instead of present arrangement.


Estimating the Future Organizational Structure of Forecasting the Manpower Requirements The management must estimate the structure of the organisation at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mix, and competition. Forecasting provides the basic premises on which the manpower planning is built, Forecasting is necessary for various reasons, such as: (a) The eventualities and contingencies of general economic business cycles (such of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources. (b) An expansion following enlargement and growth in business involves the use of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources.

23 (c) Changes in management philosophies and leadership styles. (d) The use of mechanical technology (such as the introduction of automatic controls, or the mechanization of materials handling functions) necessitate changes in the skills of workers, as well as a change in the number of employees needed. (e) Very often, changes in the quantity or quality of products or services require a change in the organisation structure. Plans have to be made for this purpose as well. It may be noted that for purposes of manpower planning, the main dimensions to be taken into consideration are: (i) The total number of personnel available, this could be obtained from they pay-rolls and other personnel records, such as the applications for employment. The total number has to be classified on some basis, such as manual workers (i.e., daily-rated, weekly-rated or monthly-rated); clerical employees, ministerial staff, managers and other executives; specialists and skilled and unskilled workers; sex-wise distribution etc. (ii) The job-family, i.e., a detailed job-description for each position such as stenographers who may belong to various departments e.g., finance, marketing, personnel, public relations, general administration, etc.



Age distribution of the employees, available in the present departments, say in the age-groups 20-29 years; 30-45 years; 46 years and above.


Qualification and experience desired, such as a person with 5 years 10 years experience in a particular branch/job; and whether under-graduate, post-graduate, or MBAs or graduates in Science, Commerce, Arts, engineering, or professional diploma holders, etc; or with specialized knowledge in the field of marketing, finance, computer programming or engineering work.


The salary range, etc. Auditing Human Resource Once the future human resource needs are estimated, the next step to determine the present Supply of manpower resources. This is done through what is called “Skills Inventory”. A skills inventory contains data about each employee’s skills, abilities work preferences and other items of information which indicate his overall value to the company.


Job Analysis After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparation of job descriptions and job specifications. This has been discussed in the later sections of this chapter.


Developing a Human Resources Plan This step refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing, therefore, is to decide on the policy – should the personnel be hired from within through promotional channels or should it be obtained from an outside source. The best policy which is followed by most organisatoins is to fill up higher vacancies by promotion and lower level positions by recruitment from the labour market.

RESPONSIBILITY FOR HUMAN RESOURCE PLANNING The responsibilities of the Personnel department are having the responsibilities in man power planning which have been stated by Geisler in the following words:

24 i. To assist, counsel and pressurize the operating management to plan and establish objectives; ii.

To collect and summarize data in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business-plan;


To monitor and measure performance, against the plan and keep the top management informed about it; and


To provide the research necessary for effective manpower of organizational planning. Manpower Plan – Component

The manpower plan can be broken down into three components: i.

Forecasting – estimating future needs and stock taking of available resources in the organisation.


Recruitment plan, to meet the gap between the internal resource and estimated need by external recruitment;


Training and Development plan to utilize fully the human resources of the organisation and to develop the potential resources. JOB ANALYSIS

Developing an organisation structure results in jobs when have to be staffed. “Work” is an organisatoin primary function. The ‘basic work activities’ may relate to three categories – Data, People and Things. Under data are included synthesizing, coordinating, analyzing, compiling, computing, copying and comparing activities. People relate to monitoring, negotiating, instructing, supervising, diverting, persuading, speaking, signaling, serving and taking instructions. Things are concerned with setting up, precision working, operating-controlling, driving – operating, manipulating, feeding-off bearing and handling. PURPOSE AND USES OF JOB ANALYSIS A comprehensive JA programmes is an essential ingredient of sound personnel management. It is the major input to forecasting future human resource requirements, job modifications, job evaluation, determination of proper compensation, an d the writing of job descriptions. It is of fundamental importance to manpower management programmes because of the wider applicability of its results. The information provided by JA is useful, if not essential, in almost every phase of employee relations. i.

Organisation and Manpower Planning: It is helpful in organizational planning, for it defined labour needs in concrete terms and co ordinates the activities of the work force, and clearly divides duties and responsibilities.


Recruitment, Selection: By indicating the specific requirements of each job (i.e., the skills and knowledge), it provides a realistic basic for the hiring, training, placement, transfer and promotion of personnel ‘Basically, the goals is to match the job requirements with a worker’s aptitude, abilities and interests. It also helps in charting the channels of promotion and in showing lateral lines of transfer.”


Wage and Salary Administration: By indicating the qualifications required for doing a specified job and the risks and hazards involved in its performance, it helps in salary and wage administration. Job analysis is used as a foundation for job evaluation.


Job Re-engineering: Job analysis provides information which enables us to change jobs in order to permit their being manner by personnel with specific characteristics and qualifications. This takes two forms: (a) Industrial engineering activity, which is concerned with operational analysis, motion study, work simplification methods and improvements in the place of work and its measurement, and aims at

25 improving efficiency, reducing unit labour costs, and establishing the production standard which the employee is expected to meet; and (b) Human engineering activity, which takes into consideration human capabilities, both physical and psychological, and prepares the ground for complex operations of industrial administration, increased efficiency and better productivity. v.

Employee Training and Management Development: Job analysis provides the necessary information to the management of training and development programmes. It helps it to determine the content and subject matter of in-training courses. It also helps in checking application information, interviewing, weighing test results, and in checking references.


Performance Appraisal: It helps in establishing clear-cut standards which may be compared with the actual contribution of each individual.


Health and Safety: It provides an opportunity for identifying hazardous conditions and unhealthy environmental factors so that corrective measures may be taken to minimize and avoid the possibility of accidents. CONTENTS OF JOB ANALYSIS

A job analysis provides the following information: (i)

Job identification: Its title, including its code number;


Significant characteristics of a job: Its location, physical setting, supervision, union jurisdiction, hazards and discomforts:


What the typical works does: Specific operations and tasks that make up an assignment, their relative timing and importance, their simplicity, routine or complexity, the responsibility or safety of other for property, funds, confidence and trust;


Which materials, and equipment a works uses: Metals, plastics, grains, yarns, feedings, removing, drilling, driving, setting up and many others.


How a job is performed. Nature of operation – lifting, handling, cleaning, washing, feeding, removing, drilling, driving, setting up and many others.


Required personnel attributes: Experience, training, apprenticeship, physical strength, co-ordination or dexterity, physical demands, mental capabilities, aptitudes, social skills;


Job relationship Experience required, opportunities for advancement, patterns of promotions, essential cooperation, directions, or leadership from and for a job.

Job Analysis (A Process for Obtaining All Pertinent Job Facts) Job Description

Job Specification

26 Statement containing items such as: (a) Job Identification (job title, location, occupational code, alternative name in use, name of division, department and unit where it exists) (b) Job Summary (gives a quick capsule explanation of the contents of a job, its hazards and discomforts) (c) Duties performed (says the what, how and why of a job; also describes and worker’s responsibilities in regard to custody of money, supervision of other workers, training of subordinates, etc.) (d) Relation to other jobs (gives how many persons may be supervised). (e) Supervision given/taken (helps in locating a job in the job hierarchy). (f) Machines, tools, equipment (what type of tools/equipment material is used). (g) Materials and forms used (h)

Conditions of work


Hazards (accident hazards)

A statements of the human requirements for doing a job (a) Physical make-up or Characteristics


Psychological characteristics.


Personal characteristics.




Other factors of a demographic nature

THE STEPS IN JOB ANALYSIS There are basic steps required for doing a job analysis, viz., Step 1: Collection of Background Information Step 2: Selection of Representative Position to be Analyzed Step 3: Collection of Job Analysis Data Step 4: Developing A Job Description Step 5: Developing Job Specification TECHNIQUES OF JOB ANALYSIS DATA The determination of job tasks, the concomitant skills and abilities necessary for successful performance, and the responsibilities inherent in the job can be obtained through such methods or approaches as the following: (i) Personal observation; (ii) Sending out questionnaires; (iii) Maintenance of log records; and (iv) Conducting personal interviews.

27 (i) Personal observation: The materials and equipment used, the working conditions and probable hazards, and an understanding of what the work involves are the facts which should be known by an analyst. Direct observation is especially useful in job that consist primarily of observable physical ability, like the jobs of draftsman, mechanic, spinner or weaver. (ii) Sending out Questionnaire : The method is usually employed by engineering consultants. Properly drafted questionnaires are sent out to job-holders for completion and are returned to supervisors. However, the information received is often unorganized and incoherent. Then idea in issuing questionnaires is to elicit the necessary information from job – holders so that any error may first be discussed with the employee and, after due corrections, may be submitted to the job analyst. (iii) Maintenance of Log Records: The employee maintains a daily diary record of duties he performs, marking the time at which each task is started and finished – But this system is incomplete, for it does not give us any desirable data on supervisor relationship the equipment used, and working conditions. Moreover, it is time-consuming. (iv) Personal interviews: may be held by the analyst with the employees, and answers to relevant questions may be recorded. But the method is time-consuming and costly. JOB DESIGN The enthusiasm with which HRM has been embraced by many working with in the theory and practice of job design is founded upon its prediction and promise that individuals will be provided with stimulating and enrich jobs. Not only will individual employees perform far more varied and skill jobs but through the resulting quantitative and qualitative performance improvements organizations will become far more competitive. Hence, one of the most important components of organizational effectiveness and economic prosperity is the attention and details paid to the design of work tasks. THE TWO APPROACHES TO JOB DESIGN The first approach is a focus, that is the discrete and autonomous active interventions made by management in the employment relationship designed to increase performance by, for example: •

Increasing motivation


Placating discontent and alienation

Improving the flexibility of employee utilization

Position or Job Description (ID) “Job description” is an important document which is basically descriptive in nature and contains a statements of job analysis. It provides both organizational information (location in structure, authority etc.) and functional information (what the work is). It defines the scope of job activities, major responsibilities, and positioning of the job in the organisatoin. It provides the worker, analyst, and supervisor with a clear idea of what the work must do to meet the demands of the job. “Job description” is different from “ performance assessment.” The former concerns such functions as planning, coordinating, and assigning responsibility, which the latter concerns the quality of performance itself. Though job description is not assessment, it provides an important basis for establishing assessment standards and objectives. Job Description describes the ‘jobs’ not the ‘job holders’ the movement of employees due to promotion, quits, etc. would create instability to job description if people rather than jobs are described. USES OF JOB DESCRIPTION

28 Job description has several uses , such as: (i) Preliminary drafts can be used as a basis for productive group discussion, particularly if the process starts at the executive level. (ii) It aids in the development of job specifications, which are useful in planning recruitment, if training and in hiring people with required skills. (iii) It can be used to orient new employees toward basic responsibilities and duties. (iv) It is basic document used in developing performance standards. (v) It can be used for job evaluation, a wage and salary administration technique. A job description enables the manager to frame suitable questions to be asked during an interview. It is particularly helpful when the application form is used as a tool for eliminating the unfit personnel. According to Zerga, a job description helps us in: (i) Job grading and classification (ii) Transfers and promotions (iii) Adjustments of grievances; (iv) Defining and outlining promotional steps; (v) Establishing a common understanding of a job between employers and employees. (vi) Investigating accidents; (vii)

Indicating faulty work procedures or duplication of papers;


Maintaining, operating and adjusting machinery

(ix) Time and motion studies; (x) Defining the limits of authority (xi) Indicating case of personal merit; (xii)

Facilitating job placement.


Studies of health and fatigue


Scientific guidance


Determining jobs suitable for occupational therapy;


Providing hiring specifications; and


Providing performance indicators.

Components or Contents of Job Description: A job description contains the following data: (i) Job identification, or Organizational Position which includes the job title, alternative title, department, division, plant and code number of the job. The job title identifies and designates the job properly. The department, division, etc., indicate the name of the department where it is situated – whether it is the maintenance department, mechanical shop, etc. The location givers the name of the place. The portion of job

29 description gives answer to two important questions: to what higher level job is jobs accountable, and who is supervised directly? (ii) Job summary serves two important purposes. First it provides a short definition which is useful as additional identification information when a job title is not adequate. Second, it serves as a summary to orient the reader towards an understanding of detailed information which follows. It gives the reader a “quick capsule explanation” of the content of a job usually in one or two sentences. (iii) Job duties and responsibilities give a comprehensive listening of the duties together with some indication of the frequency of occurrence or percentage of time devoted to each major duty. It is regarded as the heart of a job. It tells us what needs to be done? How it should be done? And why is should be done? It also describes the responsibilities related to the custody of money the supervision of workers and the training of subordinates. (iv) Relation of other jobs: This helps to locate the job in the organisatoin by indicating the job immediately below or above it in the job hierarchy. It also gives an ideal of the vertical relationships of work flow and procedures. (v) Supervision: Under it is given the number of persons to be supervised along with their job titles, and the extent of supervision involved – general, intermediate or close supervision. (vi) Machine, tools and equipment define each major type or trade name of the machines and tools and the raw materials used. (vii) Working conditions usually give us information about the environment in which a job holder must work. These include cold, heat, dust, wetness, moisture, fumes, odour, oily conditions etc. obtaining inside the organisation. (viii)

Hazards give us the nature of risks to life and limb., their possibilities of occurrence, etc.

DEVELOPING JOB DESCRIPTIONS OR GUIDELINES FOR WRITING A JOB DESCRIPTION Opinions differ on how to write job descriptions. Some experts are of the view that these should be written in detail and in terms of work flow. Others feel that these should be written in terms of goals or result to be achieved, in other words as performance standards (or what is popularly known as “management by objectives”) the prevalent thinking is that job ‘descriptions should be written’ in terms of duties and responsibilities, i.e., in terms of functions performed. Job descriptions are written by Personnel Departments or its representatives. Although there is no set way of writing of job description, the following pattern is fairly typical, and used by many companies. (i) A paragraph is allocated to each major task or responsibility. (ii) Paragraphs are numbered and arranged in a logical order, task sequence or importance. (iii) Sentences are begun with an active verb. e.g. “types letters.” “interviews the candidates, “collects, sorts out, routes and distributes mail.” (iv) Accuracy and simplicity are emphasized rather than an elegant style. (v) Brevity is usually considered to he important but is largely conditioned by the type of job being analysed and the need for accuracy. (vi) Examples of work performed are often quoted and are useful in making the job description explicit. (vii) Job descriptions, particularly when they are used as bases for training, often incorporate details of the faults which may be encountered in operator tasks and safety check-points.

30 (viii)

Statements of opinion, such as “dangerous strantions are encountered, “should be avoided .

(ix) When job descriptions are written for supervisory jobs, the main factors (such as manning, cost control, etc.) are identified and listed. Each factor is then broken down into a series of elements with a note on the supervisor’s responsibility. The British Institute of Management Publication adds four more guidelines: (i) Give a clear, concise and readily understandable picture of the whole job; (ii) Describe in sufficient detail each of the main duties and responsibilities; (iii) Indicate the extent of direction received and supervision given. (iv) Ensure that a new employee understands the job if he reads the job description. LIMITATION OF JOB DESCRIPTION The job specification takes the job description and answers the question “What human traits and experience are needed to do the job well?” it tells what kind of person to recruit and for what qualities that person should be tested. Job specirfications translate the job description into terms of the human qualifications which are required for a successful performance of a job. They are intended to serve as a guide in hiring and job evaluation. As a guide in hiring, they deal with such characteristics as are available in an application bank, with testing interviews, and checking of references. Job specification are developed with the co-operation of the personnel department and various supervisors in the whole organisation. The personnel department co-ordinates the writing of job descriptions and job specifications and secures agreement on the qualifications required. These specifications relate to: a) Physical characteristics, which include health, strength, endurance, age-range, body size, height, weight, vision, voice, poise, eye, hand and foot co-ordination, motor co-ordination, and colour discrimination. b) Psychological characteristics or special aptitude which include such qualities as manual dexterity, mechanical, aptitude, ingenuity, judgment, resourcefulness, analytical ability, mental concentration and alertness. c) Personal characteristics or traits of temperament, such as personal appearance, good and pleasing manners, emotional stability, aggressiveness or submissiveness, extroversion or introversion, leadership, cooperativeness, initiative and drive, skill in dealing with others, unusual sensory qualities of sight, smell hearing, adaptability, conversational ability, etc. d) Responsibilities, which include supervision of others, responsibility for production, process and equipment; responsibility for the safety of others; responsibility for generating confidence and trust: responsibility for preventing monetary loss. e) Other features of a demographic nature, which are age, sex, education, experience and language ability. Job specifications are mostly based on the educated guesses of supervisors and personnel managers. They give their opinion as to who do they think be considered fro a job in terms of education, intelligence, training etc. one of he most extensive “judgmental” approaches to developing job specification is contained in a Dictiornay or Occupational Titles, published by the U.S. Training and Employment service. Its description for a Personnel Managers’ job is as follows: “Personnel Manager: Director Personnel; manager, employee relations; Personnel supervisor. “Plans and carries out policies relating to all phases of personnel activities.”


32 UNIT – III The Selection Process – Placement and induction – Training and development – Promotions – Demotions – Transfers – Separation. THE SELECTION PROCESS SELECTION PROCEDURE In the Human Resource Management the selection procedure is concerned with securing relevant information about an applicant. This information is secured in a number of steps or stages. The objective of selection process is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is molt likely to perform well in that job. The hiring procedure is not a single act but it is essentially a series of methods or steps or stages by which additional information is secured abut the applicant. At each stage, facts may come to light which may lead to the rejection of the applicant. A procedure may be compared to a series of successive hurdles or barriers which an applicant must cross. These are intended as screens, and they are designed to eliminate an unqualified applicant at any point in the process. This technique is known as the successive hurdles technique. Not all selection processes include all these hurdles. The complexity of a process usually increases with the level and responsibility of the position to be filled. According to Yoder, “the hiring process is of one or many ‘go, no-go’ gauges. Candidates are screened by the application of these tools. Qualified applicants go on to the next hurdle, while the unqualified are eliminated. “ Thus, an effective selections programme is a non-random process become those selected have been chosen on the basis of the assumption that they are more likely to be “better” employees than those who have been rejected. Selection processes or activities typically follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. The traditional selection process includes: preliminary screening interview; completion of application form; employment tests; comprehensive interview; background investigations physical examination and final employment decision to hire. SELECTION POLICY On formulating a selection policy, due consideration should be given to organizational requirements as well as technical and profession dimensions of selection procedures. Yoder and others have suggested goals, technological issues, cost factors, extent of formality, etc. In words, an effective policy must assert “why” and “what” aspects of the organizational objectives” ESSENTIAL ELEMENTS OF SELECTION PROCEDURE The selection procedure adopted by an organization is mostly tailor made to meet its particular needs. The thoroughness of the procedure depends upon three factors. First, the nature of selection, what her faulty or safe, because of faulty selection affects not only training period that they may be needed, but also results in heavy expenditure on the new employee and the loss that may be incurred by the organization in case the job-occupant fails on his job. Second, the policy of the company and the attitude of the management: As a practice sonic companies usually hire more than the actual number needed with a view to removing the unfit persons from the jobs. Third, the length of the probationary or the trial period. The longer the period, the greater the uncertainty in the minds of the selected candidate about his future. The hiring process can be successful, if the following preliminary requirements are satisfied. (a) Some one should have the authority to hire. This authority comes fro the employment requisition, as developed by an analysis of the work-load and work force.

33 (b) There must be sonic standard or personnel with which a prospective employee may be compared, i.e., there should be avail able, beforehand, a comprehensive job description and job specifications as developed by a job Analysis. (c) There must he a sufficient number of applicants from whom the required number of employees may be selected. STEPS IN SELECTION PROCEDURE There is no shortcut to an accurate evaluation of a candidate. The hiring procedures are, therefore, generally long and complicated. Many employers make use of such techniques and pseudo-sciences as phrenology, physiognomy, astrology, graphology, etc.. while coming to hiring decisions. However, in modern times. These are considered to be unreliable measures. The following is a popular procedure though it may be modified to suit individual situation: 1. Reception or preliminary interview or screening. 2. Application blank – a fact-finder which helps one in learning bout an applicant of life history. 3. A well conducted interview to explore the facts and get at the attitudes of the applicant and his family to the job. 4. A physical examination – health and stamina are vital factors in success; 5. Physiological testing to explore the surface area and get an objective look at a candidate suitability for a job. 6. A reference check; 7. Final selection approval by manager; and communication of the decision to the candidate. PLACEMENT AND INDUCTION After an offer of employment the first stage in procurement function is placement of the individual on the new job and orienting him to the organisation. “Placement” may be defined as the determination of the job to which an accepted candidate is to be assigned, and his assignment to that job. It is a matching of what the supervisor as reason to think he can do with a job demands, it is a matching of what he imposes and what he offers in the form of pay roll, companionship with others, promotional possibilities etc. A proper placement of a worker will have impact on: -

Reduces employee turnover




Accident rates


Improves morale

After selection, the employees will be generally put on a probation period, which may range from one to two years, then after his employment may be regularized, provided that during this period his work been found to be satisfactory.


34 Induction is a technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purpose of the organisation. OBJECTIVES OF ORIENTATION •

To avoid the insecure feeling of a new comer joins in organisation.

To develop a strong feeling about the work place and work environment.

To develop defensive behaviour

To develop courageous

To make them a self confident person

It helps to minimize the reality shock

The importance of induction expected by the new comer may be as followed 1. Opportunities for advancement. 2. Social status and prestige – reorganization by others. 3. Responsibility. 4. Opportunities to use special aptitudes and educational background. 5. Challenge and adventure. 6. Opportunity to be creative and original 7. Lucrative Salary PROCEDURE FOR INDUCTION Any organization has an obligation to make integration of the individual into the organization as smooth and anxiety – free as possible. This can be achieved through a formal or informal placement orientation programme depends on the size of the organisatoin and the complexity of the individuals new environment. There is no model induction procedure but each industry develop their own procedures as per its needs. The procedure should basically follow theses steps: (i) The new person needs time and a place to report to work. (ii) It is very important that the supervisor should welcome the employee to the organization. (iii) The administrative work like vacations, probationary period, medical absences, suggestion system should be covered. (iv) Department orientation like get-acquainted talk, introduction to the department, departmental functional explanations and job instructions should be informed. (v) Verbal explanations must be supplemented by variety of printed materials, employees hand books, manuals, flyers, house journals, picture stories, comics, and cartoons, pamphlets, etc.

Employee Training

35 To improve the effectiveness of every organisatoin they need to have well trained and experienced people to perform the activities that have to be done. If the current or potential job \occupant can meet this requirement, training is not important. But when this is not the case, it is necessary to raise the skill levels and increase the versatility and adaptability of employees. Inadequate job performance or a decline in productivity or changes resulting out of job redesigning or a technological break-through require some type of training and development efforts. As the jobs become more complex, the importance or employee development also increases. It an rapidly changing society, employee training and development is not only an activity that is desirable but also an activity that an organisatoin must commit resources to if it si to maintain a viable and knowledgeable work force. ‘Training’, ‘education’ and development’ are three terms frequently used. On the face of it, there might not appear any difference between them, but when a deep thought is given, there appears some differences between them. In all ‘training there is some ‘education’ and in all ‘education’ there is some ‘training’. And the two processes cannot be separated from ‘development’. Precise definitions are not possible and can be misleading; but different persons have used these activities in different wages. MEANING FOR TRAINING AND DEVELOPMENT Training is a process of learning a sequence of programmed behaviour. It is application of knowledge. It give people an awareness of the rules and procedures to guide their behaviour. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process it covers not only those activities which improve job performance but also those which bring about growth of the personality; help individuals in the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT “Training is short-term process utilizing a systematic and organized procedure by which non-managerial personnel learn technical knowledge and skills for a definite purpose. Development is a long-term educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose.” “Training” refers only to instruction in technical and mechanical operations, while “development” refers to philosophical and theoretical educational concepts. Training is designed for non-managers, while development involves managerial personnel. In the words of Campbell, “training course are typically designed for a short-term, stated set purpose, such as the operation of some piece(s) of machinery, while development involves a broader education for long-term purposes.” Training and development differ in four ways: a) “What” is learned; b) “Who” is learning; c) “Why” such learning takes place; and d) “When” learning occurs. NEED FOR BASIC PURPOSES OF TRAINING The need for the training of employees would be clear from the observations made by the different authorities. i.

To Increase Productivity by the performance.


To Improve Quality by good relationship between employer and employee


To Help a Company fulfill its Future Personnel Needs


To Improve Organizational Climate.

36 v. To Improve Health and Safety vi.

Obsolescence Prevention


Personal Growth

Need for training – arises from more than one reason like: (i) An increased use of technology in production; (ii) Labour turnover arising form normal separations due to death or physical incapacity, for accidents, disease, superannuation voluntary retirement, promotion within the organization and change of occupation or job; (iii) Need for additional hands to cope with an increased production of goods and services; (iv) Employment of inexperienced, new or badly labour requires detailed instruction for an effective performance of a job. (v) Old employees need training to enable them to keep abreast of the changing methods, techniques and use of sophisticated tools and equipment; (vi) Need for enabling employees to do the work in amore effective way, to reduce learning time, reduce supervision time, reduce waste and spoilage of raw material and produce quality goods, and develop their potential. (vii) Need for reduction grievances and minimizing accident rates; (vs Need for maintain the validity of an organization as a whole and raising the morale of its employees. Importance of Training Training is the corner-stone of sound management, for it makes, employees more effective and productive. It is actively and intimately connected with all the personnel or managerial activities. It is an integral part of the whole management programme, with all its many activities functionally inter-related. Training is a practical and vital necessity because, apart from the other advantages mentioned above, it enables employees to develop and rise within the organisation, and increase their “market value”, earning power and job security. It enable management to resolve sources of friction arising from parochialism, to bring home to the employees the fact that the management is not divisible. It moulds the employees’ attitudes and help them to achieve a better co with the comp any and a greater loyalty it it. The management is benefited in the sense4 that higher standards of quality are achieved; a satisfactory organizational Structure is built up; authority can be delegated and stimulus for progress applied to employees. Training, moreover, heightens the morale of the employees, for it helps in reducing dissatisfaction, complaints, grievances and absenteeism, reduces the rate of turnover. Further, trained employees make a better and economical use of materials and equipment, therefore wastage and spoilage are lessened, and the need for constant supervision is reduced. The importance of training has been expressed in these words: “Training is a widely accepted problem-solving device. Indeed, our national superiority in manpower productivity can be attributed in no small measures to the success of our educational and industrial training programmes. This success has been achieved by a tendency in many quarters to regard training as a panacea.” Responsibility for Training Training is the responsibility of four main groups: (a) The top management, which frames the training policy; (b) The personnel department, which plans, establishes and evaluated instructional programmes;

37 (c) Supervisors, who implement and apply developmental procedure; and (d) Employees, who provide feedback, revision and suggestions for corporate educational endeavours. Creation of a Desire for Training The employees can be persuaded to be interested in training programmes in one of the following three ways: 1. They will respond programmes involving changed behaviour if they believe that the resulting modification in the behaviour is in their own interest, that they will receive personal benefits as a result of their new behaviour. 2. Trainees will change their behavior if they became aware of better ways of performing (more productive or otherwise more satisfactory ways) and gain experience in the new pattern of behaviour so that it becomes their normal manner of operation. 3. A trainee may change his behaviour in compliance with the forced demands of his superiors or others with more power than the trainee possesses. Principles or Concepts of Training Since training is a co process and not a one shot affair, and since it consumes time and entails much expenditure, it is necessary that a training programme or policy should be prepared with great through and care, for it should serve the purposes of the establishment as well as the needs of employees. A successful training programme presumes that sufficient care has been taken to discover areas in which it is needed most and to create the necessary environment for its conduct. The selected trainer should be one who clearly understands his job and has professional expertise, has an aptitude and ability for teaching, possesses a pleasing personality and a capacity for leadership, is well versed in the principles and methods of training, and is able to appreciate the value of training in relation to an enterprise. Certain general principles need be considered while organizing a training programme. For example: 1. Trainees in work organisation tend to be most responsive to training programmers when they feel the need to learn, i.e., the trainee will be more eager to learn training if training promises answers to problems or needs he has an employee. The individual who perceives training as the solution, to problems will be more willing to enter into a training programme that will the individual who is satisfied with his present performance abilities. 2. Learning sin roe effective where there is reinforcement in the form of rewards and punishments,’ i.e., individual do things that give pleasure and avoid things that give pain. In other words, after an action, if satisfies is received, the action will be repeated. If no satisfaction is received, the action will not be repeated. 3. In the long run, awards tend to be more effective for changing behaviour and increasing one’s learning than punishments. 4. Rewards for the application of learned behaviour are most useful when they quickly follow the desired performance. 5. The larger the reward for good performance following the implementation of learned behaviour, the greater will be the reinforcement of the new behaviour. 6. Negative reinforcement, through application of penalties and heavy criticism following inadequate performance, may have a disruptive effect upon the learning experience of the trainee than positive reinforcement. 7. Training that requests the trainee to make changes in his values, attitudes, and social beliefs, usually achieves better results if the trainee is encouraged to participate.

38 8. The trainee should be provided with ‘feedback’ on the progress he is making in utilizing the training he has received. As Miller has stated, “If a person with the required abilities is to improve his performance, he must (i) know what aspect of his performance is not up to par; (ii) know precisely what corrective actions he must take to improve his performance.” The feedback should be fast and frequent, especially for the lower level jobs which are often routine and quickly completed. 9. The development of new behaviour norms and skills is facilitated through practice and repetition. Skills that are practiced often are better learned and less easily forgotten. 10. The training material should be made as meaningful as possible, because if the trainee understands the general principles under lying what is being taught, he will properly understand it better than if he were just asked to memorize a series of isolated steps. Steps in Training Programmes “Training programmes are a costly affair, and a time consuming process. Therefore, they need to be drafted very carefully. Usually in the organisation of training programmes, the following steps are considered necessary; 1. Discovering or Identifying the training needs. 2. Getting ready for the job. 3. Preparation of the learner 4. Presentation of operations and knowledge. 5. Performance try-out 6. Follow-up and Evaluation of the programme. 1. Discovering or Identifying Training Needs Identification of training needs must contain three types of analyses – organizational analysis, operations analysis, and man analysis. Organizational analysis centers primarily upon the determination of the organization’s goals. Its resources, and the allocation of the resources as they relate to the organizational goals. The analysis of the organizational goals establishes the framework in which, training needs can be defined more clearly. Operations analysis focuses on the task or job regardless of the employee doing the job. This analysis includes the determination of the worker must do – the specific worker behaviour required – if the job is to be performed effectively. Man analysis reviews the knowledge, attitudes and skills of the incumbent in each position and determines what knowledge, attitudes or skills he must acquire and what alterations in his behaviours he must make if he is to contribute satisfactory to the attainment of organizational objectives. Will Berlines and William McLarney say that discovering training needs involves five tasks: (a) Task Description Analysis 1. List the duties and responsibilities or tasks of the job under consideration, using the Job Description as a guide. 2. List the standards of work performance on the job. (b) Determining Training Needs 1. Compare actual performance against the standards.

39 2. Determine what parts of the job are giving the employees trouble – where is he falling down in his performance? 3. Determine what kind of training is needed to overcome the specific difficulty or difficulties. THE TRAINING NEEDS BEEN IDENTIFIED TO SOLVE THE SPECIFIC PROBLEMS AS FOLLOWS: (i) Identifying Specific Problems: Such problems are: productivity, high costs, poor material control, poor quality, excessive scrap and waste, excessive labor-management troubles, excessive grievances, excessive violation of rules of conduct, poor discipline, high employee turnover and transfers, excessive absenteeism, accidents, excessive fatigue, fumbling discouragement, struggling with the job; standards of work performance not being met, bottlenecks in production, deadlines not being met, and delayed production. Problems like these suggest that training may be necessary. For this the task the workers should be closely observed and the difficulties found out. (ii) Anticipating Impending and Future Problems: bearing on the expansion of business, the introduction of new products, new services, new designs, new plant, new technology and of organizational changes concerned with manpower inventory present and future needs. (iii) Management Requests: the supervisors and managers make specific request for setting training programmes, though this method is simple and a correct evaluation of the employees performance deficiencies can be made, but often such recommendations maybe built on faulty assumptions; and requests may not coincide with each other or organizational goals. (iv) Interviewing and Observing the Personnel on the Job: Inter viewing personnel and direct questioning and observation of the employee by his superiors may also reveal training needs. (v) Performance Appraisal: An analysis of the past performance records of the perspective trainee and comparing his actual performance with the target performance may provide clues to specific interpersonal skills that may need development. (vi) Questionnaires: Questionnaires may be used for eliciting opinions of the employees on topics like communication, satisfaction, job characteristics, their attitude towards working conditions, pay, promotion policies tec. These will reveal much information about where an employee’s skills and know-ledge are deficient. (vii) Checklist: The use of checklist is a useful supplement to interviews and observations. Through it, more reliable information can be obtained and the data got are quantifiable. This facilities evaluation the training programme’s effectiveness. (viii) Morale and attitude Surveys: An occasional personnel may be conducted to forecast future promotions, skill requirements, and merit rating, to initiate informal discussions and an examination of records and statistics regarding personnel, production, cost, rejects and wastages. All these generally reveal the potential problems to be tackled through training programmes. (ix) In addition, tests of the interpersonal skills through handling of posed cases and incidents, may also reveal training needs.

Discovering or Identifying training needs (Through organizational operations manpower analysis, etc.

40 Getting ready for the job Preparation of the learner (Create desire & prepare accordingly) Presentation of operations and knowledge (Applications of TRG techniques) Performance Try-out Follow-up (Rewards and feedback)

Fig. Sequence of Training Programme Support Materials for Training A variety of tools and equipment are utilized to impart effective training. these are: (a) Lectures (learning by hearing supplemented by reading assignment); conferences, seminars and staffmeetings (learning by participation); demonstrations (learning by seeing); and short courses, through coaching. (b) Role-playing (learning by doing) and job rotation (learning by experience). (c) (Case or Project studies and problem-solving sessions (learning by personal investigation.) (d) Use of pamphlets, charts, brouches, booklets, handbooks, manuals, etc. (e) Graphs, pictures, books, slides, movie projectors, film strips, tape recorders etc. (f) Posters, displays, notice and bulletin boards. (g) Reading rooms and libraries where specified books and journals are maintained for reference and use. (h) Under-study and visits to plants. (i) Correspondence courses under which knowledge about business law, statistics, industrial management, marketing, office procedures, retailing and many other similar subjects may be imparted. (j) Teaching machines. (k) Membership of professional or trade associations, which offer new techniques and ideas to their members. Training Methods / Techniques The forms and types of employee training methods are inter-related. It s difficult, if not impossible, to say which or the methods or combination of methods is more useful than the other. In fact, methods are multi-faceted in scope and dimensions, and each is suitable for a particular situation.

The methods of training as follows: •

On-the-Job-Training (OJT)

Job Instruction Training (JIT)

41 •

Vestibule Training

Training by experienced workmen

Classroom or Off-the-Job-Training like


lecture conferences group discussion. case studies role playing programme instruction T-group training Chart Classification of Training Methods

(a) On the job

(c) Demonstration and Examples

(d) Simulation

(b) Vestibule

(g) Other training methods

(e) Apprenticeship


(f) Classroom Methods


Audiovisual Aids

Conference Case study Role-planning

On-the-Job- Training (OJT) There are a variety of OJT methods, such as -



under study


job rotation





Programmed Instruction


Trainee learns of the actual equipment in use and in the true environment of his job.

Secondly, it is highly economical since no additional personnel or facilities are required for training.

42 Thirdly, the trainee learns the rules, regulations and procedures by observing their day-to-day applications. He can, therefore, be easily sized up by the management.

Fourthly, this type of training is a suitable alternative for a company in which there are almost as many jobs as there are employees.

Finally, it is most appropriate for teaching the knowledge and skills which can be acquired in a relatively short period, say, a few days or weeks. DEMERITS OF ON-THE-JOB-TRAINING

Instruction is often highly disorganized.

Job Instruction Training (JIT) This method is very popular in the States for preparing supervisors to train operatives. The JIT method requires skilled trainers, extensive job analysis, training schedules, and prior assessment of the trainee’s job knowledge. This method is also knows as “training through step-by-step learning.” It involves listing all necessary steps in the job, each in proper sequence. These steps show what is to be done. Along side such step is also listed a corresponding “Key point”, which show how it is to be done and why. The job instruction training process is in four steps: (i) The preparation of the trainee for instrucotn. This includes putting him at case, emphasizing the importance of the task and giving a general description of job duties and responsibilities. (ii) Presentation of the insturciotns, giving essential information in a clear manner. This includes positioning the trainee at work site, telling and showing him each step of the job, stressing why and how each step is carried out as it is shown. (iii) Having the trainee try out the job to show that he has understood the instructions, if there are any errors they are corrected; and (iv) Encouraging the question and allowing the trainee to work along and the trainer follows up regularly. The JIT methods provides immediate feedback on results, quick correction of errors, and provision of extra practice when required. However, it demands a skilled trainer and can interfere with production and quality. Vestibule training (or Training-Centre Training) It is a classroom training which is often imparted with the help of the equipment and machines which are identical with those in use in the place of work. This techniques enables the trainee to concentrate on learning the new rather than on performing an actual job. It is a very efficient method of training semi-skilled personnel, particularly when many employees have to trained for the same kind of what that same time. Training is generally given in the form of lectures, conferences, case studies, role-playing and discussion.


Training is given in a separate room, distractions are minimized.

Trained instructor, who knows how to teach, can be more effectively utilized.

43 

The correct method can be taught without interrupting production.

It permits the trainee to practice without the fear of supervisors’ / co-workers’ observations and their possible redicule.

Demerits of the Vestibule Training 

The splitting of responsibilities leads to organizational problems.

An additional investment in equipments is necessary, though the cost may be reduced by getting some productive work done by trainees while in the school.

This method is of limited value for the jobs which utilize equipment which can be duplicated.

The training situation is somewhat artificial. CLASS-ROOM OR OFF-THE-JOB METHODS

“Off-the-job-training” simply means that training is not a part of everyday job activity. The actual location may be in the company class rooms or in places which are owned by the company, or in universities or associations which have no connection with the company. These methods consist of: 1. Lectures 2. Conferences 3. Group Discussions 4. Case Studies 5. Role-playing 6. Programme Instruction 7. T-Group Training. 1. Lectures (or Class-Room Instruction): Lectures are regarded as one of the most simple ways of imparting knowledge to the trainees, especially when facts, concepts, or principles, attitudes, theories and problemsolving abilities are to be taught. Lectures are formal organized talks by the training specialist, the formal superior or other individual specific topics. The lecture method can be used for very large groups which are to be trained within a short time, thus reducing the cost per trainee. In training, the most important uses of lectures include: 

Reducing anxiety about upcoming training programmes or organizational changes by explaining their purposes.

Introducing a subject and presenting an overview of its scope.

Presenting basic material that will provide a common back ground for subsequent activities.

Illustrating the application of rules, principles; reviewing, clarifying an summarizing. LIMITATIONS OF LECTURE SYSTEM

(i) The learners are passive instead of active participants. The lecture method violates the principle of learning by doing.

44 (ii) A clear and vigorous verbal presentation requires a great deal of preparation for which management personnel often lack the time. (iii) The attention span of even a well-motivated and adequately informed listener is only from 15 minutes to 20 minutes so that in one course of an hour, the attention of listeners drifts. (iv) It is difficult to stimulate discussion following a lecture, particularly if he listener is uninformed or awestruct by the lecturer. (v) The untrained lecturer either ramples or packs far too much information in the lecture, which often becomes unpalatable to the listener. (vi) The presentation of material should be geared to a common level of knowledge. (vii) It tends to emphasis the accumulation and memorization of facts and figures and does not lay stress on the application of knowledge. (viii) Through a skilful lecturer can adapt his material to the specific group, he finds it difficult to adjust it for individual differences within a group. 2. The Conference Method: In this method, the participating individuals ‘conver’ to discuss points of common interest to each other. A conference is basis to most particeipative group-centred methods of development. It is a formal meeting, conducted in accordance with an organized plan, in which the leader seeks to develp knowledge and understanding by obtaining a considerable amount of oral participation of the trainees. Three types of conferences are 1. Directed discussion 2. Training conference 3. Seminar conference 3. Seminar or Team Discussion: This is an established method for training. A seminar is conducted in many ways: (i) It may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person in charge of the seminar. It may be a part of a study or related to theoretical studies or practical problems. The trainees read their papers, and this is followed by critical discussion. The chairman of the seminar summaries the contents of the papers and the discussion which follow their reading. (ii) It may be based on the statement made by the person in charge of the seminar or on a document prepared by an expert, who is invited to participate in the discussion. (iii) The person is charge of the seminar distributes in advance the material to be analyzed in the form of required readings. The seminar compares the reactions of trainees, encourages discussion, defines the general trends and guides the participants to certain conclusions. (iv) Valuable working material may be provided to the trainees by actual files. The trainees may consult the files and bring these to the seminar where they may study in detail the various aspects, ramifications and complexities of a particular job or work or task.

(d) Case Studies (or Learning by doing): This method was first developed in the 1880s by Christopher Langdell at the Harvard Law School to help students to learn for themselves by independent thinking and by discovering in the ever-tangled skein of human affairs, principles and ideas which have lasting validity and general applicability. A collateral object is to help them develop sills in using their knowledge. In case study method the trainee is expected to:

45 (i) Master the facts, become acquainted with the content of the case; (ii) Define the objectives sought in dealing with the issues in the case, (iii) Identify the problems in case and uncover their probable causes; (iv) Develop alternative co of action; (v) Screen the alternatives using the objectives as the criteria; (vi) Select the alternative that is most in keeping with the stated objectives. (vii)

Define the controls needed to make the action effective; and


To ‘role play’ the action to test its effectiveness and find conditions that may limit it.

(e) Role-playing: This method was developed by Moreno, a Venetian psychiatrist. He coined the terms “roleplaying,” “role-reversal”, “socio-drama”, “psychodrams”, and a variety of specialized terms, with emphasis on learning human relations skills through practice and insight into one’s own behaviour and its effect upon others. It has been defined as “a method of human interaction which involves realistic behaviour in the imaginary situations.” The Role-playing method merits are: 

Learning by doing is emphasized;

Human sensitivity and interactions are stressed;

The knowledge of results is immediate;

Trainee interest and involvement tend to be high;

It is a useful method to project the living conditions between learning in the classroom and working on a job and creating a live business situation in the classroom.

It develops skills and ability to apply knowledge, particularly in areas like human relations; and

It brings about desired changes in behaviour and attitudes.

(f) Programmed Instruction (or Teaching by the Machine Method): Programmed instruction involves a sequence of step which are often set up through the central panel of an electronic computer as guides in the performance of a desired operation or series of operation. It incorporates a pre-arranged, proposed, or desired course of proceedings pertaining to the learning or acquisition of some specific skills or general knowledge. The merits of the methods are:  Trainees learn at their own pace;  Instructors are not a key part in learning;  The materials to be learned are broken down into small units;  Immediate feedback is available;  Active learner participation takes place at each step in the programme.  Individual differences can be taken into account;

46  Training can be imparted at odd times and in odd places;  There is a high level of learner motivation. Demerits of the methods are:  The impersonality of instructional setting;  An advanced study is not possible until preliminary information has been acquired;  Only factual subject matters can be programmed;  Philsophical and attitudinal concepts and motor skills cannot be taught by this method; and  The cost of creating any such programme is very great. (g) T-Group Training: This method of training is a technique of composition of audio visual aids and planned reading programmes. Audio-visual aids – records, tapes, and films are generally used in conjunction with other conventional teaching method.  Some employees are engaged in a confined phase of a particular task and lose their all-round skills in a particular trade. Hence, to keep them active in all-found skills, such training is needed.  During prolonged lay-off periods, employees on certain highly skilled jobs are given retraining when they are called back to work.  Technological changes may make a particular job, on which an employee is working. Unnecessary, and the company may desire to retrain him rather than discharge him.  An employee, because of illness, accident or incapacity due to age, may no longer be able to do his share of the work he performed when he was in normal health.  Economic depression or cyclical variations in production create conditions in which employment stabilization may be achieved by having a versatile work-force capable or performing more than one job. STEPS TO INCREASE TO IMPROVE EFFECTIVENESS OF TRAINING The training programmes can be made effective and successful if the following hints are considered. 1. Specific training objectives should be outlined on the basis of the type of performance required to achieve organizational goals and objectives. an audit of personal needs compared with operational requirements will help to determine the specific training needs of individual employees. This evaluation should from a welldefined set of performance standards toward which each trainee should be directed. 2. Attempt should be made to determine if the trainee has the intelligence, maturity, and motivation to successfully complete the training programmes. If deficiencies are noted in these respects, the training may be postponed or cancelled till improvements are visible. 3. The trainee should be helped to see the need for training by making him aware of the personal benefits he can achieve through better performance. He should be helped to discover the rewards and satisfactions that might be available to him through changes in behaviour. 4. The training programme should be planned so that it si related to the trainee’s previous experience and background. This background should be used as a foundation for new development and new behaviour.

47 5. Attempts should be made to create organizational conditions that are conductive to a good learning environment. It should be made clearly why changes are needed. Any distractions, in the way of training environment, should be removed. The support of the upper levels of management should he obtained before applying training at lower levels. 6. If necessary, a combination of training methods should be selected so that variety is permitted and as many of the senses as possible are utilized. 7. It should be recognized that all the trainees do not progress at the same rate. Therefore, flexibility should be allowed in judging the rates of progress in the training programme. 8. If Possible, the personal involvement or active part of the trainee should be got in the training programmes. He should be provided with opportunity to practice the newly needed behaviour norms. 9. As a trainee acquires new knowledge, skills or attitudes and applies them in job situations, he should be significantly rewarded for his efforts. 10. The trainee should be provided with regular, constructive feedback. 11. The trainee should be provided with personal assistance when he encounters learning obstacles. MANAGEMENT DEVELOPMENT Management development is mainly having two main tasks 1. The improvement of management performance and the organization of management succession. For this purpose, a systematic performance appraisal is helpful in assessing the potential of managers and their training needs. 2. An assessment of an organization’s requirements is made so that suitable training and development programmes are designed and initiated to help managers to realize their full potential and serve their organisation better. PURPOSE AND OBJECTIVE OF MANAGEMENT DEVELOPMENT The respective output variable expected by this management development programmes are: (i) Knowledge change; (ii) Attitude change; (iii) Behaviour change; (iv) Performance change; and (v) End-operational results (the last two changes being the result of the first three changes) The MDP is implemented in the organisation with the expectation of the following end-results:  Improvement in technical performance;  Improvement in supervision and leadership at each level;  Improvement in inter-departmental cooperation;  Highlighting an individual’s weaknesses;  Attracting good men;

48  Facilitating sound “promotion-from-within” policies and practices;  Ensuring that the qualifications of key personnel become better known;  Creating reserves in management ranks;  Making an organisation more flexible by an increased versatility of its members;  Imporiving organizational structure;  Stimulating junior executives to do better work;  Keeping the company abreast of technical and e conditions; and  ‘Broadening’ key men in the middle cadre. MANAGEMENT DEVELOPMENT CONCEPTS The number of development concepts are expressed as follow: •

There is no time limit for learning

There always exists some gap between actual performance and capacity.

Increased understanding of their behavioural attitudes.

There are certain forces which may retard further growth but these may offset or the direction of their movement changed.

Development seldom takes place in a completely peaceful and relaxed atmosphere. Growth involves stresses and strains.

Development requires a clear-out setting of the objectives and goals.

Participation is essential for growth

Feedback from both the superior and the group, individual is necessary of reorganization.

Responsibility as a role for the organizational efficiency. MANAGEMENT DEVELOPMENT PROGRAMME – COMPONENTS 

Looking at organization’s objectives

Ascertinign development needs;

Appraisal of present management talents;

Preparation of Manpower Inventory

Planning of individual development programmes;

Establishment of training and development programmes;


49 Promotion – Definitions “Promotion” is a term which covers a change and calls for greater responsibilities, and usually involved higher pay and better terms and conditions of service and, therefore, a higher status or rank. According to Scott and Clothier: “A promotion is the transfer of an employee to a job which pays more money or one that carries some preferred status”. A promotion may be defined as an upward advancement of an employee in an organization to another job, which commands better pay/wages, better status/prestige, and higher opportunities/challenges, responsibility, and authority, better working environment, hours and work and facilities, and a higher rank. THE OBJECTIVES OF PROMOTION 

To put the worker in a position where he will be of greater value to the company and where. He may derive increased personal satisfaction and income from his work;

To remove a worker from his job as an alternative to avoid the embarrassment of firing or demoting him;

To recognize an individual’s performance and reward him for his work so that he may have an incentive to forge ahead. Employees will have little motivation if better jobs are reserved for Outsiders;

To increase an employee’s organisation effectiveness;

To buildup morale, loyalty, and a sense of belonging on the part of the employees when it is brought home to them that they would be promoted if they deserve it;

To promote job satisfaction amont the employees and give them an Oppoirtunity for unbroken, continuous service;

To provide a process of “selective socialization Employees whose personalities and skills enable them to fit into an organisation human relations programme tend to stay on; while those whose personalities with those of the organisation tend to leave;

To attract suitable and competent workers for the organisation;

To create among employees a feeling of contentment with their present conditions and encourage them to Succeed in the company. TYPES OF PROMOTIONS

1. Multiple Chain Promotion 2. Up or Out Promotion 3. Dry Promotion

PROMOTION POLICY The promotion policy should consists six elements, they are: 1. Statement of the promotion policy;

50 2. Establish a plan of jobs. 3. Trace transfer routes 4. Prepare employees for advancement through the provision of some trainings. 5. Policy communication 6. Detailed personal and service records are kept ready. The factors to the considered for promotions 

Length of service


Training course completed

Previous work history

Based on ability

Hard work




DEMOTION – DEFINITION Demotion’ has been defined as “the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility. In other words, demotion refers to the lowering down of the status, salary and responsibilities of an employee. It is used as a punitive measure when there are serious branches of duty on the part of an employee when it is often a preliminary to a dismissal. When an employee is demoted, his pride suffers a more severe jolt than it does when he is superseded by his junior. When a demotion will be practice in an organisation? :The factors considered for the demotion are:  When departments are combined and jobs eliminated, employees are often required to accept lower-level position until normalcy is restored. Such demotions are not a black mark against an employee.  Inadequacy on the part of the employees in terms of job performance, attitude and capability – as happens when an individual finds it difficult to meet job requirements standards, following his promotion; and  When, because of a change in technology, methods and practices, old bands are unable to adjust, or when employees, because of ill health or personal reasons, cannot do their job properly.  Demotion is also used as a disciplinary measure. Demotion Policy: According to Yoder, Heneman, Turnbull and Stone demotion practice is having a five-fold as: (i) A clear and reasonable list of rules should be framed, violations of which would subject an employee to demotion;

51 (ii) This information should be clearly communicated to employees; (iii) There should be a competent investigation of any alleged violation; (iv) If violations are discovered, there should be consistent and equitable application of the penalty, preferably by the immediate supervisor; (v) There should be provision for review. A demotion should never be made as a penalty for a violation of the rules of conduct, poor attendance record, or insubordination because such action will not improve the performance of the individual. Only discipline and training can set the things right. Demotions have a serious impact on need fulfillment. Needs for esteem and belonging are frustrated, leading to a defensive behaviour on the part of the person demoted; there is compiling, emotional turmoil, inefficiency or resignation. Hence, demotions are made quite infrequently. Many managers prefer to discharge employees rather than face the problems arising from demotion. TRANSFER – DEFINITION Yoder and associates have defined 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.” A transfer is a horizontal or lateral movement of an employee from one job, section, department, shift, plant or position to another at the same or another place where his salary, status and responsibility are the same. It generally does not involve a promotion demotion or a change in job status other than movement from one job or place to another. THE REASONS FOLLOWED IN TRANSFERS ARE: 

To satisfy such needs of an organisation as arise out of a change in the quantity of production, fluctuations in work requirements, and changes in the organizational structure; the introduction of new lines of production the dropping of existing product lines, the reallocation of or reduction in the workforce due to a shortage or a surplus in same section so that lay-offs may be avoided; filling in of the vacancies which may occur because of separations or because of the need for suitable adjustments in business operations.

To meet an employee’s own request, when he feels uncomfortable on the job because of his dislike of his boss, or his fellow workers, or because better opportunities for his future advancement do not exist there, or because of family circumstances which may compel him to change the place of his residence.

To utilize properly the services of an employee when he is not performing satisfactorily and adequately and when the management feels that he may be more useful or suitable elsewhere, where his capacities would be better utilized. Such transfers are called remedial transfers.

To increase the versatility of the employee, by shifting him from one job to another so that he may have ample Opportunities for gaining a varied and broader experience of work. Such transfers are known as versatility transfer.

To adjust the workforce of one plant with that of another, particularly when one is closed down for reasons beyond the control of the employer. Such transfers are known as plant transfer and are generally effected on humanitarian grounds to ensure that persons who have been long in service of an organisation are not thrown our of employment.

52 To replace a new employee by an employee who has been in the organisation for a sufficiently long time. Such transfers are known as replacement transfers, the purpose being to give some relief to an old employee from the heavy pressure of work.

To help employees work according to their convenience so far as timings are concerned; for example, an employee is transferred from night shift to morning shift or from the first to the second shift (as in the case of women workers who may like to look after their children and do the necessary domestic work in the morning hours). Such transfers are known as shift transfer.

To penalize the employee transfers are also done, under which either a difficult trade union activist or intriger or sealawyer may be transferred to a remote branch or office where he cannot continue his activities. In Government organizations, this practice is widespread, and is also preferred by the employee to the grim alternative of disciplinary action.

Transfer for the maintenance of a tenure system. In senior administrative services of the Government and also in industries, or where there is a system of annual intake of management trainees such transfers are common here the employee holds a certain job for a fixed tenure but he is made to more from job to job with a view to enabling him to acquire a variety of experience and skills and also to ensure that he does not get involved in politicking informal groups. TRANSFER POLICY

A good transfer policy should consist the following factors: 

Specifically clarify the types of transfers and the condition under which these will be made;

Locate the authority in some officer who may initiate and implement transfers;

Indicate whether transfers can be made only within a sub-unit or also between departments, divisions/plants;

Indicate the basis for transfer – i.e., whether it will be based on seniority or aon skill and competence or any other factor;

Decide the rate of pay to be given to the transferee;

Intimate the fact of transfer to the person concerned well in advance;

Be in writing and duly communicated to all concerned;

Not be made frequent and not for the sake of transfer only. SEPARATIONS – DEFINITIONS

“Separation” means cessation of service of agreement with the organisation for one or other reason. The employee may be separated from the pay roll of a company as a result of: 1. Resignation; 2. Discharge and dismissal; 3. Suspension and retrenchment; and 4. Lay-off 1. Resignation: Resignations may be put in voluntarily by the employees on grounds of health, physical disability, better opportunities else where, or maladjustment with company policy and officers, or for reasons of marriage (frequent in case of young girls): or they may be compulsory when an employee is asked to put in

53 his resignation if he wants to avoid termination of his services on the ground of gross negligence of duty on his part, or some serious charge against him. 2. Discharge: A discharge involves permanent separation of an employee from the pay-roll for violation of company rules or for inadequate performance. A discharge becomes necessary: (i) When the volume of business does not justify the continuing employment of the persons involved; (ii) When a person fails to work according to the requirements of the job either because of incapacity or because he has deliberately slowed down on work, or because there is no suitable place where he can be transferred. (iii) When an individual forfeits his right to a job because of his violation of a basic policy often involving the safety of others, the morale and discipline of a group. Cause of Discharge: A discharge seldom arises from a single impulsive act. Many causes may account for it. Some of these are: (a) Frequent Causes: Inefficiency, dishonesty, drunkenness, carelessness or indifference, violation of rules. (b) Infrequent Causes: Accidents, insubordinations, personal conduct, un cleanliness, infraction of rules, destructive negligence, wastefulness, and physical unfitness. (c) Other Causes: Carelessness, lack of co-operation, laziness, tardiness in starting work, frequent absences without leave, dishonesty, lack of specific skill, preventing promotion, promotion, adverse attitude towards the organisation. Discharge Procedure: To avoid unnecessary grievances arising form discharges, proper rule should be framed to govern them. To demonstrate that a discharge is justified and does not arise out of unfair discrimination or personal prejudice of the supervisor, following evidence needs be produced: (i) Permanent records of all merit ratings made by the supervisors; (ii) Permanent records of ratings of the defendant’s traits maintained by persons other than the foreman; (iii) A Memorandum bearing on the efforts made by the foreman to help the defendant to overcome his weakness; (iv) A memorandum bearing on the efforts made by the foreman to help the defendant to overcome his weakness; (v) A copy of nay warning that had been sent him; (vi) The latter of discharge, especially if the letter states the cause of the discharge. Discharge are generally made in accordance with the Standing Orders. The action taken should be bonafide and is neither a punitive measure nor a case of victimization. The following elements should be present in a discharge programme: (i) The reasons for discharge should be clearly stated. (ii) The individual concerned should be adequately informed about the reasons for his discharge. (iii) The supervisor, in charge of initiating discharge action, should be fully conversant with rules and regulations of the organisation.

54 (iv) The facts regarding the violations of the rules and regulations should be carefully analyzed. (v) Line officials should handle the discharge affairs. (vi) There should be a well-thought – out procedure for setting the discharge case. (vii)

Adequate provision should exist for review of the discharged employee’s case.

(viii) A discharged employee needs a reasonable notice or an equivalent of pay in lieu of notice. It carried with it certain penalties, such as difficulty of re-employment, loss of benefits and, in certain cases, the loss of a part of the provident fund, etc. DISMISSAL A dismissal is the termination of the services of an employee by way of punishment for some misconduct, or for unauthorized and prolonged absence from duty. Before his services are terminated, an employee is given an opportunity to explain his conduct and to show cause why he should not be dismissed. The general rule is that in this process, there should be no violation of what is known as the principle of natural justice, which ensures that punishment is not Out of all proportion to the offence. 3. Suspension This a serious punishment, and is generally awarded only after a proper enquiry has been conducted. For reasons of discipline, a workman may be suspended without prejudice during the course of any enquiry. During suspension, the employee receives a subsistence allowance. Retrenchment: It means a permanent termination of the services of an employee for economic reasons in going concern. The Industrial Disputes Act. 1947 defines retrenchment as the “termination by the employer of the services of workmen for any reason”. It must be noted that termination of services as a punishment given by way of disciplinary action, or retirements either voluntarily or on reaching the age of superannuation, or continued ill-health, or on the closure and winding up of a business, does not constitute retrenchment. The term is applied to continuing operations where a part of the work force is found to be superfluous. A worker can be retrenched if the following conditions are satisfied: (a) He has been given 3 month’s notice in writing, indicating the reasons for retrenchment, and the period of notice has expired, or he has been paid wages in lieu of such notice for the period of the notice. (b) The worker has been paid, at the time of retrenchment, compensation which is equivalent to 15 days’ average pay for every completed year of continuous service or any part thereof in excess of 6 months. (c) Notice has been served on the appropriate government authority and the permission of such authority has been obtained. 4. Lay-off A lay-off refers to an indefinite separation of the employee from the pay roll due to factors beyond the control of the employer; the employee is expected to be called back in the foreseeable future. It involves a temporary or permanent removal from the pay-roll of persons with – surplus skills. The purpose of a lay-off is to reduce the financial burden on an organisation when human resources cannot be utilized profitably. Thus, a lay-off means the failure, refusal or inability of an employer to provide employment to a workman whose name is borne on the muster roll of his establishment. It is resorted to as a result of some such bonafide reasons as factors which are beyond the control of the employers: (a) Breakdown of machinery;

55 (b) Seasonal fluctuations in markets and loss of sales; (c) Accumulation of stocks or financial slump; (d) Shortage of raw material, coal and power; (e) Production delays; and (f) Other technological reasons.

56 UNIT - IV Wage and Salary Administration – Factors – Principles – Compensation plan – Individual – Group – Incentives – Bonus – Fringe benefits – Job evaluation – Wage and salary administration in relation to personal taxation. WAGE AND SALARY ADMINISTRATION The activities of wage and salary administration are: 

Job evaluation

Analysis or Relevant organizational problems

Development and maintenances of wage structure

Establishing rules for administering wages

Wage payments


Profit sharing

Wage changes adjustments

Supplementary payments

Control of compensation and other related items

Nature and Purpose The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Its secondary objective is the establishment and maintenances of an equitable labour – cost structure, i.e., an optimal balancing of conflictin personnel interests so that the satisfaction of employees and employers is maximized and conflicts minimized. The wage and salary administration is concerned with the financial aspects of needs, motivation and rewards. The objectives of the Wage and Salary Administration are mentioned as below: (a) For employees: 

Employees are paid according to requirements of their jobs.

The chances of favoritism (which creep in when wage rates are assigned) are greatly minimized.

Job sequences and line of promotion are established wherever they are applicable.

Employees’ morale and motivation are increased because a wage programmes can be explained and is based upon facts.

(b) To employees: 

They can systematically plan for an control their labour costs.

In dealing with a trade union, they can explain the basis of their wage programme because it is based upon a systematic analysis of job and wage facts.

57 

A wage and salary administration reduces the likelihood of friction and grievances over wage inequities.

It enhances an employee’s morale and motivation because adequate and fairly administered wages are basic to his wants and needs.

It attracts qualified employees by ensuring an adequate payment for all the jobs.

The Wage Determination Process The Wage Determination process steps are:  Performing job analysis  Wage surveys  Analysis of relevant organizational problems forming wage structure  Framing rules of wage administration  Explaining these to employees  Assigning grades and price to each job and paying the guaranteed wage. Job Analysis

Job Description & Specification

Wage Legislation

Job Evaluation

Wage surveys & Relevant organisation al problems

Wage Structure

Rules administration

Performance standards

Difference administration

Wage payment

Fig. Steps involved in Determination of Wage Rate Factors Influencing Wage and Salary Structure and Administration The wage policies of different organizations vary somewhat. Marginal units pay the minimum necessary to attract the required number and kind of labour. Often, these units pay only the minimum wage rates required by labour legislation, and recruit marginal labor. At the other extreme, some units pay well above the going rtes in the labour market. A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wage based upon differences in job contents. Besides the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: 

The organisation’s ability to pay;

Supply and demand or labour;

58 

The prevailing market rate;

The cost of living;

Living wage;


Trade Union’s Bargaining power;

Job requirements;

Managerial attitudes; and

Psychological and Sociological factors

Principles of Wage & Salary Administration The commonly suggested principles governing fixation of wage and salary are: (i) There should be a definite plan to ensure that differences in pay for jobs are based upon variations in job requirements, such as skill, effort, responsibility or job or working conditions, and mental and physical requirements. (ii) The general level of wage and salaries should be reasonably in fine with that prevailing in the labour market. The labor market criterion is most commonly used. (iii) The plan should carefully distinguish between jobs and employees. A job carries a certain wage rate, and a person is assigned to fill it at that rate. Exceptions sometimes occur in vary high-level jobs in which the jobholder may make the ob large or small, depending upon his ability a contributions. (iv) Equal pay for equal work, i.e., if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them. (v) An equitable practice should be adopted for the recognition of individual differences in ability and contribution. For some units, this may take the form of rate ranges, with in-grade increases; in others, it may be a wage incentive plan; it still others, it may take the form of closely integrated sequences of job promotion. (vi) There should be a clearly established procedure for hearing and adjusting wage complaints. This may be integrated with the regular grievance procedure, if it exists. (vii) The employees and the trade union, if there is one, should be informed about the procedure used to establish wage rates. Every employee should be informed of his own position, and of the wage and salary structure. Secrecy in wage matters should not be used as a cover-up for haphazard and unreasonable wage programme. (viii) The wage should be sufficient to ensure for the worker and his family reasonable standard of living. Workers should receive a guaranteed minimum wage to protect them against conditions beyond their control. (ix) The wage and salary structure should be flexible to that changing conditions can be easily met. (x) Prompt and correct payments of the dues of the employees must be ensured and arrears of payment should not accumulate. (xi) The wage and salary payments must fulfill a wide variety of human needs, including the need for selfactualization. It has been recognized that “money is the only from of incentive which is wholly negotiable, appealing to the widest possible of seekers…. Monetary payments often act as motivators and satisfiers interdependently of other job factors.”

59 Theory of Wages Different methods of wage payment are prevalent in different industries and in various countries. There may be payment by time or payment by results, including payments at piece rates. Wages are fixed mainly as a result of individual bargaining, collective bargaining or by public or State regulation. How wages are determined has been the subject of several theories of wages. The main element in these theories may be summed up as follows: Subsistence Theory This theory, also knows an ‘Iron Law of Wages,” was propounded by Davit Ricardo (1772-1823). This theory (1817) states that “The labourers are paid to enable them to subsist and perpetuate the race without increase or diminution.” The theory was based on the assumption that if the workers were paid more than subsistence wage, their numbers would increase as they would procreate more; and this would bring down the rate of wages. If the wages fall below the subsistence level, the number of works would decrease – as many would die of hunger, malnutrition, disease, cold, etc. and many would not marry, when that happened the wage rates would go up. Wages Fund Theory This theory was developed by Adam Smith (1723-1790). His basic assumption was that wages are paid out of a pre-determined fund of wealth which lay surplus with wealthy persons as a result of savings. This fund could be utilized for employing labourers for work. If the fund was large, wages would be high; if it was small, wages would be reduced to the subsistence level. The demand for labour and the wages that could be paid them were determined by the size of the fund. The Surplus Value Theory of Wages This theory owes its development to Kari Marx (1849-1883). According to this theory, the labor was an article of commence, which could be purchased on payment of ‘subsistence price.’ The price of any product was deter ruined by the labour time needed for producing it. The labourer was not paid in proportion to the time spent on work, but much less, and the surplus went to the over, to be utilized for paying other expenses. Residual Claimant Theory Francis A Walker, propounded this theory. According to him, there were four factors of production/business activity, viz., land, labour, capital and entrepreneurs Wages represent the amount of value created in the production which remains after payment has been made for all these factors of production. In other words, labour is the residual claimant. Marginal Productivity Theory This theory was developed by Phillips Henry Wicksteed (England) and John Bates Clark (USA). According to this theory, wages are based upon an entrepreneur estimate of the value that will probably be product by the last or marginal worker. In other words, it assumes that wages depend upon the demand for, and supply of labour. Consequently workers are paid what they are economically worth. The result is that the employer has a larger share in profit as has not to pay to the non-marginal workers. As long as each additional worker contribute more to the total value than the cost in wages, it pays the employer to continue hiring; where this becomes uneconomic, the employer may resort to superior technology. The Bargaining Theory of Wages John Davidson propounded this theory. Under this theory, wages are determined by the relative bargaining power of workers or trade unions and of employers. When a trade union is involved, basic wages, fringe benefits, job differential and individual differences tend to be determined by the relative strength of the organisation and the trade union.

60 Behavioural Theories Many behavioural scientists – notably industrial psychologists and sociologists – like Marsh and Simon, Robert Dubin, Elion Jacques have presented their views or wages and salaries, on the basis of research studies and action programmes conducted by them. Briefly such theories are: The Employee’s Acceptance of Wage Level: This type of thinking takes into consideration the factors which may induce an employee to stay on with a company. The size and prestige of the company the power of the union, the wages and benefits that the employee receives in proportion to the contribution made by him – all have their impact. The Internal Wage Structure: Social norms, traditions, customs prevalent in the organisation and psychological pressures on the management, the prestige-attached to certain jobs in terms of social status, the need to maintain internal consistency in wages at the higher levels the ratio of the maximum and minimum wage differentials, and the norms of span of control and demand for specialized labor all affect the internal wager structure of an organization. Wage and Salaries and Motivators Money often is looked upon as means of fulfilling the most basic need of men. Food, clothing, shelter, transportation, insurance, pension plans, education and Other physical maintenance and security factors are made available through the purchasing power provided by monetary income-wages and salaries. Merit increases, bonuses based on performance, and other forms of monetary recognition for achievement are genuine motivators. However, basic pay, cost of living increases, and other wage increases unrelated to an individual’s own productivity typically may fall into maintenance category. COMPENSATION PLAN For the higher management, salaries are influenced by the size of a company by the specific industry, and in part by the contribution of the incumbent to the process of decision-making. The bigger the firm, the greater is the compensation paid to the executives. The industries that are more highly constrained by governmental regulation (banks, life insurance, air transport, railroads, public utilities) pay relatively less than those that are more free to carry on their business (private firms). Straight salaries, bonuses, stock purchase plans and profit-sharing are used to compensate major executives. Of these, the straight salary is the most common method. The salary is determined by mutual agreement between the individual and the employer. The sales effected, the cost of production, reduction in expenses and the profits, made are also taken into account. Bonuses are also aid to executives at a certain percentage of the profits. The bonuses may average from 30 per cent to 50 percent of the basic salary. These bonuses operate most effectively in increasing motivation when the following conditions exist. (i) The amount paid is closely related to the level of individual performances; (ii) The amount paid after taxes represents a clearly noticeable rise above the base salary level; (iii) The amount paid is closely related to the level of company performance; (iv) The amount paid is tied into the base salary in such a way that the combined earning are equitable both in relation to internal and external standards. (v) The amount paid reduced drastically whenever an individual experiences a real and continuing decrease in performance effectiveness. (vi) The amount paid is based on an easily understandable system of allocation, and the individual is provided with complete information on the relationship between bonus and performance. (vii) The amount paid is based on an easily understandable system of allocation, and the individual is provided with complete information on the relationship between bonus and performance.

61 Moreover, executive are compensated for the various expenses incurred by them, for taxation take away a major portion of their salary. Such payments are in the form of (a) Medical care; (b) Counsel and accountants to assist in legal, tax and financial problems; (c) Facilities for entertaining customers and for dining out; (d) Company recreational area (swimming pool and gymnasium); (e) The cost of the education and training of executives, scholarships for their children, and allowances for business magazines and books. (f) Free well-furnished accommodation, conveyance and servants. Wage Incentives – Definition The term wage incentives has been used both in the restricted sense of participation and in the widest sense of financial motivation. It has been defined differently by different authors. We give below a few of these definitions. “It is a term which refers to objectives in the external situation whose function is to increase or maintain, some already initiated actively, and either in duration or in intensity.” According to Hummel and Nicker son: “It refers to all the plans that provide extra pay for extra performance in addition to regular wages for a job.” Florence observes: “It refers to increased willingness as distinguished from capacity. Incentives do not create but only aim to increase the national momentum towards Productivity. In the words of Scott, “it is any formal and announced programme under which the income of an individual, a small group, a plant work force of all the employees of a firm are partially or wholly related to Some measure of productivity output.” According to the National Commission Labour, “wage incentives are extra financial motivation. The are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration for improvements in the present or targeted results.” “A wage incentive scheme is essentially a managerial device of in creasing a worker’s productivity. Simultaneously, it is a method of sharing gains in productivity with works by rewarding them financially for their increased rate of output”. According to Sun, this definition is based on the principle that “an offer of additional money will motivate workers to work harder and more skillfully for greater part of the working time, which will result in a stepped-up rate of output.” We may define a wage incentive as a system of payment under which the amount payable to a person is linked with his output. Such a payment may also be called payment by results. The term incentive has gradually acquired a wide connotation and includes all the possible factors, besides economic gains, which can possibly motivate human beings towards better and greater performance. Objectives of Wage Incentive Schemes Wage incentive schemes aim at the fulfillment of one or more of 1 following objectives: (i) To improve the profit of a firm through a reduction in the unit costs of labour and materials or both: (ii) To avoid or minimize additional capital investment for the expansion of production capacity; (iii) To increase a worker’s earnings without dragging the firm in a higher wage rate structure regardless of productivity; and (iv) To use wage incentives as a useful tool for securing a better utilization of manpower, better production scheduling and performance control, and a more effective personnel policy.

62 Merits or Wage Incentive Schemes Such schemes are regarded as beneficial to both employers and workers. They are accepted as a sound technique for the achievement greater production on the ground that workers would work at their best if they are offered monetary rewards for good performance. If employers, the need for a vigorous supervision is reduced, and consequently there is a cut in the expenditure on supervision. Types of Wage Incentive Plans Wage Incentive plans may be discussed as (i) plans for blue-collar workers; (ii) plans for white-collar workers; and (iii) plans managerial personnel-because each of these categories of employees has separate and distinct needs and specific plans tailored for each may prove beneficial. 1. Incentive Plans for Blue-Collar Workers: For Individuals: (A) Short-Term Plans These systems may be broadly classified into three categories: (a) Systems under which the rate of extra incentive is in proportion to the extra output; (b) Systems under which the extra incentive is proportionately at a lower rate than the increase in output; and (c) Systems under which the rate of incentives is proportionately higher than the rate of increase in output. Merits of Wage Incentive Plans: (i) When well-designed and properly applied, payment by result may generally be relied upon to yield increased output, lower the cost of production and bring a higher income to the workers. (ii) A works study associated with payment by result is a direct stimulus to workers to improve the organisation of work and to eliminate lost time and other waste. (iii) Labour and total cost per unit of output can be estimated more accurately in advance. (iv) Less direct supervision is needed to keep output up to a reasonable level. (v) The confliction interests of employers and employees are unified. Increased efficiency and smooth working can therefore be promoted and sustained. Demerits of Wage Incentive Plans: (i) Quality tends to deteriorate unless there is a stricter system of checking and inspection. (ii) Payment by result may lead to opposition or restriction on output when new machines and methods are proposed or introduced. This is because of the hear that the job may be restudied and earnings reduced, (iii) When paid by result, workers and to regard their highest earnings as norms, and therefore, press for a considerable higher minimum wage. (iv) The amount and cost of clerical work increases. (v) There is a danger of disregarding safety regulations and thereby increasing the rate of accidents. (vi) Some workers tend to over-work and thus undermine their health. (vii) Jealousies may arise among workers because some are able to earn more than others or because fast workers are dissatisfied with the slower or older works in the group.

63 (viii) It is difficult to set piece or bonus rates accurately. If they are too low, workers may be under pressure to work too hard and become dissatisfied; and if too high, they, may slacker their efforts to avoid a revision of rates. A successful wage incentives plan should consist of the following key points: 

The management should recognize that the effectiveness of an incentive depends on the total situation, which includes workers-management confidence, relations with the trade union, the quality of communication and of supervision and the traditions in an industry.

Management should not introduce an incentive system until it has taken action to ensure full understanding of what is involved. This may call for procedures for the participation of employees and negotiations with the trade union.

The management should avoid any action that may be interpreted as unfair. There must be proper machinery for handling grievances. The management should avoid actions that resemble “rate cutting” because of the need to change methods and rates from time to time.

It is essential that the management pay in proportion to output, once this output has risen above that required amount guaranteed pay.

The management should train supervisors all the way down line so that foremen and department managers are able to deal with problems within their won departments.

Great care should be taken in setting up standards to avoid rates that are too loose or too tight.

Some Important Wage Incentive Plans : The chief incentive plans are: i.

Halsey Premium Plan.


Halsey-Weir Premium Plan.


Rowan Premium Plan.


The 100 per cent Premium Plan.


The Bedeaux Point Plan.


Taylor’s Differential Piece Rate Plan.


Merric’s Multiple Piece Rate Plan.


Gnatt Task Plan


Emerson Efficiency Plan


Co-Partnership System.


Accelerating Premium Systems.


Profit Sharing. (i) Halsey Premium Plan: This is a time-saved bonus plan which is ordinarily used when accurate performance standards have not be established.


64 The merits of this are: (a) It guarantees a fixed time wage to slow workers and, at the same time, offers extra pay to efficient workers. (b) The cost of labour is reduced because of the percentage premium system; the piece rate of pay gradually decreases with increased production. (c) The plan in simple in design and easy to introduce. (d) As the wages are guaranteed, it does not create any heartburning among such workers as are unable to reach the standard. Demerits The disadvantages of the plan are: (a) It depends upon past performance instead of making new standards. (b) The workers can beat the game by spurting on certain jobs to capture a premium and soldiering on other jobs to rest under the protection of the guarantee of day wages. (c) From the point of view of the administration, the policy is one of drift, for, in this plan, the worker is left alone to decide whether or not to produce more after the standard ahs been reached. (ii) Halsey-Weir Premium Plan: This plan is similar to the Halsey Premium Plan except that 50 percent of the time saved in given as premium to worker. Formula : Bonus = ½ x Time Saved x Hourly Rate (iii) Rowan Premium Plan: In the Rowan Plan, the time saved is expressed as a percentage of the time allowed, and the hourly rate of pay is increased by that percentage so that total earnings of the worker are the total number of hours multiplied by the increased hourly wages.

(iv) The 100 percent Premium Plan: A definite hourly rate is paid for each task-hour of work performed. The plan is identical with the straight piece-rate plan except for its higher guaranteed hourly rate and the use of task time as a unit of payment instead of a price per piece. The worker is paid the full value of the time saved. (v) The Bedeaux Point Plan: This plan is used when carefully assessed performance standards have been established. It differs from the 100 percent plan in that the basic unit of the time is the minute termed as B. Every job is expressed in terms of Bs (after Bedeaux), which means that a job should be completed in so many minutes. (vi) Taylor’s Differential Piece-Rate Plan: This system was introduced by Taylor with two objects: First, to give sufficient incentive to workmen to induce them to produce up to their full capacity; and second, to remove the fear of wage cut. There is one rate for those who reach the standard; they are given a higher rate to enable them to get the bonus. (vii) Merrie’s Multiple Piece Rate System: This system, too, is based on the principle of low piece rate for slow worker and a higher piece rate for higher production; but the plan differs from Taylor’s Plan in that it offers three graded piece rates, instead of two. (i) Upto, say 83% of standard output a piece-rate + 10% of time rate as bonus; (ii) Above 83% and upto 100% of standard output – same piece rate + 20% of time rate; and (iii) Above 100% of standard output – same piece rate but no bonus. (viii) The Gnatt Task and Bonus Plan: This plan has been devised by H.L. Gnatt and is the only one that pays a bonus percentage multiplied by the value of standard time. Under this system, fixed time rates are

65 guaranteed. Output standards and time standards are established for the performance of each job. Workers completing the job within the standard time or in less time receive wages for the standard time plus a bonus which ranges from 20 percent to 50 percent of the time allowed and not time saved. When a worker fails to turn out the required quantity of a product, he simply gets his time rate without any bonus. Under this plan, there are also three stages of payment: (i) Below the standard performance, only the minimum guaranteed wage is to be paid; (ii) at the standard performance, this wage + 20% of time rate will be paid as a bonus; and (iii) when the standard is exceeded, a higher piece-rate is paid but there is no bonus. (ix) Emerson Efficiency Plan: Under this system, a standard time is established for a standard task. The day wage is assured. There is not sudden rise in wages on achieving the standard of performance. The remuneration based on efficiency rises gradually. Efficiency is determined by the ratio between the standard time fixed for a performance and the time actually taken by a worker. Thus, if the period of 8 hours is the standard time for a task and if a worker performs it in 16 hours, his efficiency is 50 percent. He who finishes the task in 8 hours has 100 percent efficiency. No bonus is paid a worker unless he attains 662/3 percent efficiency, at which stage he receives a nominal bonus. This bonus goes on increasing till, when he achieves 100 percent efficiency, the bonus comes to 20 percent of the guaranteed wage. At 120 percent efficiency, a worker receives a bonus of 40 percent and at 140 percent efficiency the bonus is 60 percent of the day wage. (x) Co-Partnership System: This system tries to eliminate friction between capital and labour. Under this system, not only does a workers share in the profits of the undertaking but he also takes part in its control and, therefore, shares responsibilities. There are different degree of this partnership and control allowed to the operatives in different cases; but in complete co-partnership system, the following factors are present. a. The payment of the existing standard wages of labour; b. The payment of a fixed rate of interest on capital; c. The division of the surplus profit between capital and labour in an agreed proportion; d. The payment for a part of the worker’s labour by the allotment of a share in the capital. e. The sharing in the control of the business by the representatives of labour. The system arouses and sustains the interest of the workers in their work. By giving them a voice in the management of the factory it raises their status as well. As they have become partners in the business, they try to make it a very profitable enterprise. (xi) Accelerating Premium Systems: These are the systems which provide for a guaranteed minimum wage for output below standard. (B) Long – Term Wage Incentive Plans This is classified into three types: 1. A standard output 2. The ‘value added’ by manufacturer 3. Bonus can also be calculated on the increased value of sales where this result is obtained by increased production. The Group Incentive Plans are usually: (i) The Profit sharing schemes, and (ii) The Scanlan Plan. (i) Profit Sharing

66 Profit-sharing is regarded as a stepping stone to industrial democracy. Prof. Seager observes: “Profit-sharing is an arrangement by which employees receives a share, fixed in advance of the profit.” Features of Profit-Sharing: The main features of the profit-sharing schemes are: (a) The agreement is voluntary and based on joint consultation made freely between the employers and the employees. (b) The payment may be in the form of cash, stock of future credits of some amount over and above the normal remuneration that would otherwise be paid to employees in a given situation. (c) The employees should have some minimum qualifications, such as tenure or satisfy some other condition of service which may be determined by the management. (d) The agreement on profit-sharing having been mutually accepted, is binding and there is no room on the part of the employer to exercise discretion in a matter which is vital to the employees. (e) The amount to be distributed among the participants is computed on the basis of some agreed formula, which is to be applied in all circumstances. (f) The amount to be distributed depends on the profits earned by an enterprise. (g) The proportion of the profits to be distributed among the employees is determined in advance. Types of Profit-Sharing: Employee profit-sharing is often regarded by employers as a supplementary benefit programme. Although plans differ widely as to specific details, three basic of profit-sharing plans are in use: (a) Current (cash) profits are paid directly to employees in cash or by cheque or in the form of stock as soon as profits are deter mined (e.g., mongthly, quarterly, biannually or annually). (b) Deferred profits are credited to employee accounts to be paid to the time of retirement or in particular circumstances (i.e., disability, death, severance or under withdrawal provisions during employment). (c) Combination by which a part of the profit is paid in cash and a pan is deferred and placed in the employee’s account in a trust fund. Objectives of Profit-Sharing (a) To promote industrial harmony and stabilization of the work force; (b) To eliminate waste in the sue of materials and equipments; (c) To instill a sense of partnership among employees and employers and to increase employee interest in the company in which he works; (d) To attract desirable employees and retain them, thereby reducing the rate of turnover. (e) To encourage employee thrift; (f) To provide a group incentive for a larger output; (g) To ensure employee security; and (h) To demonstrate some measure of social justice to employees. Forms of Profit-Sharing Profit-sharing may be on-

67 1. Industry Basis 2. Locality Basis 3. Units Basis 4. Department Basis 5. Individual Basis Fringe Benefits – Definition These benefits are usually known as “fringe benefits” as they are offered by the employer to the employee as a “Fringe.” Different tern have been used for these benefits, such as “Fringe Benefits,” “Welfare Expenses,” Wage Supplements,” “Subwages” or “Social Charges,” “Perquisites other than Wages,” “hidden payroll”, “Non-Wage Labour Costs” or “Selected Supplementary Compensation Practices.” It is difficult to define what a fringe benefit is, for there is no agreement among the experts on its precise meaning, significance or connotation. The chief area of disagreement is between “wages” and on the one hand and between “fringes” and “company personnel services” on the other. There are also differences on whether the bi which have been legally provided for should be included among the “fringes”. The Glossary of Current Industrial Relations and Wage Terms has defined fringe benefits as “Supplements to wages received by workers at a cost to employers. The term encompasses a number of benefits – paid vacation, pension, health and insurance plans, etc., - which usually add upto something more than a “fringe” and is sometimes applied to a practice that may constitute a dubious benefits for workers.” The International Labour Organisation has defined “fringe benefits” as under. “Wages are often augmented by special cash benefits, by the provision of medical and other services. In addition, workers commonly receive such benefits as holidays with pay, low-cost meals, low-rent housing, etc. Such additions to the wage proper are sometimes referred to as ‘fringe benefits.’ Benefits that have no relation to employment or wages should not be regarded a fringe benefits, even though they may constitute a significant part of the workers’ total in come. This is fairly obvious in the case of public parks, sanitation services, and public and fire protection.” The United States Chamber of Commerce include five categories of services and benefits under the term fringe benefits. These are: (i) Legally required payments – old age pension, survivor benefits, disability pension, health insurance, unemployment insurance, separation pay, and payments made under the Workmen’s Compensation Act; (ii) Pension and group insurance; and welfare payment; (iii) Paid rest periods, waste-up time, lunch periods; (iv) Payment for time not worked – vacations and holidays, for example; and (v) Christmas bonus. Belcher defines these benefits as “any wage cost not directly include payments for non-working time, profits and bonus, legally sanctioned payments on social security schemes, workmen’s compensation, welfare cess, and the contributions may by employees under such voluntary schemes as cater for the post-retirement, medical, ecudational, cultural and recreational needs of workmen. The term also includes the monetary equivalent of free lighting, water, fuel etc., which are provided for workers, and subsidized housing and related services.” Cockman views employees benefits as “those benefits which are supplied by an employer to or for the benefits of an employee, and which are not in the form of wages, salaries and time-rated payments.” We may define fringe benefit thus;

68 Fringe benefit is primarily a means in the direction of ensuring, maintaining and increasing the income of the employee. It is a benefit which supplements to a worker’s ordinary wages and which is of value to them and their families in so far as as it materially increases their retirement. Special Features of Fringe Benefits It will be noted that there is some difference between ‘wages and fringe benefits’.  Firstly, wages are directly related to the work done and are paid regularly – usually weekly, fortnightly or monthly. Fringe benefits, on the other hand, are those payments or benefits which a Worker enjoys in addition to the wages or salary he receives.  Secondly, these benefits are not given to workers for nay specific jobs they have performed but are offered to them to stimulate their interest in their work and to make their job more attractive and productive for them. They boost the earnings of the employees, and put extra spending money in their hands.  Thirdly, fringe benefit represents a labour cost for the employer, for it is an expenditure which he incurs on supplementing the average money rates due to his employees who have been engaged on the basis of time schedules. In the circumstances, everything which a company spends over and above “straight time pay” should be considered a fringe benefit. A labour cost is a “fringe” only when is an avoidable factor; that is, when it can be replaced by money wages without detriment to a worker’s productive efficiency. Only the legal or union-imposed or voluntary non-wage costs, which can be computed into money wages, are considered to be fringe.  Fourthly, a fringe is never a direct reward geared to the output, effort on merit of an employee. It is offered, not on the basis of the hard work or long hours of work put in by an employee but on the basis of length of service, his sickness, sex, the hazards of life he encounters in the course of his work, etc. for example, maternity benefits are offered to female works who have put in a prescribed period of service with a particular employer. Sometimes, the longer an employee’s period of service, the larger the fringe benefits he enjoys. But wages are always fixed and paid regularly.  Fifthly, to be termed a ‘fringe benefit,’ a labour cost should be in tended by an employer as a benefit desired by his staff. It is a fringe benefit when it is enjoyed by all the employees. For example, a fringe benefit – subsidizing non-vegetarian meals taken in the factory canteen is not a fringe benefit for vegetarian employees.  Sixthly, a fringe must constitute a positive cost to the employer and should be incurred to finance an employee benefit. If the benefit in creases a worker’s efficiency, it is not a fringe; but if it is given to supplement his wages, it is. For example the expenditure incurred on providing better lighting arrangements with a view to increasing a worker’s efficiency is not counted as expenditure incurred on fringe benefits, even though the workers may gain financially as a result of their increased efficiency flowing fro the provision of better lighting facilities. Subsidized meals, however, definitely constitute a fringe benefit. Though these benefits are known as fringes, they are not merely so but are a substantial part of the expenditure incurred on wage and salary administration. They are better known now as ‘Benefits and Services’ rather than as ‘Fringe Benefits’. But since the terms are also used inter changeably, they are synonymous. The word ‘Benefit’ applies to those items for which a direct monetary value to the employee can be easily ascertained, as in the case of holiday pay, pension, medical insurance or separation pay. The work ‘Services’, on the other hand, refers to such items as athletics, company purchasing services, workers medical examination, legal aid, housing etc. The Objectives of Fringe Benefits and Services Programmes An organisation designs and establishes a benefits-and-service programme to achieve the following ends: 

To keep in line with the prevailing practices of offering benefits and services which are given by similar concerns;

69 

To recruit and retain the best personnel;

To provide for the needs of employees and protect them against certain hazards of life, particularly those which an individual cannot himself provide for;

To increase and improve employee morale and create a helpful and positive attitude on the part of workers towards their employees;

To make the organisatoin and dominant influence in the lives of its employees with a view to gaining their loyalty and co operation, encouraging them to greater productive efforts;

To improve and furnish the organizational image in the eyes of the public with a view to improving its market position and bringing about product acceptance by it;

To recognize the official trade union’s bargaining strength, for a strong trade union generally constrains an employer to adopt a sound benefits-and-services programme for his employees.

JOB EVALUATION TECHNIQUES Job analysis describes the duties of a job, authority relationships, skills required, conditions of work, and additional relevant information. Job evaluation on the other hand, uses the information in job analysis to evaluate each job – valuing its components and ascertaining relative job worth. It involves, in other words, a formal and systematic comparison of jobs in order to determine the worth of one job relative to another, so that a wage or salary hierarchy result.’ So it is a process by which jobs in an organization are appraised. Definition of Job Evaluation Below are given some important definitions of job evaluation: The I.L.O. defines job evaluation as “an attempt to determine and, compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned.” The Bureau of a Labour Statistics, U.S.A., sys that “job evaluation is the evaluation rating of jobs to determine their position in the job hierarchy. The evaluation may be achieved through the assignment of points or the use of some other systematic method for essential job requirements, such as skills, experience and responsibility.” It the words of the Netherlands Committee of Experts on Job Evaluation “job evaluation is a method which helps to establish a justified rank order of jobs as a whole, being a foundation for the setting of wages. Job evaluation is the only one of the starting points for establishing the relative differentiation of base wage rates.” Kimball and Kimball define job evaluation as “an effort to determine the relative value of every job in a plant to determine what the fair basic wage for such a job should be.” According to Wendell French, “job evaluation is a process of deter mining the relative worth of the various jobs within the organisatoin, so that differential wages may be paid to jobs of different worth.” The relative worth of a job means relative value produced. The variables which are assumed to be related to value produced are such factors as responsibility, skills, effort and working conditions. We may define job evaluation as a process of analyzing and describing positions, grouping them and determining their relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements. It is the quantitative measurements of relative job worth for the purpose of establishing consistent wage rate differentials by objectives means. It measures the differences between job requirements, the objective being the setting of pay for management purposes.

70 It does not set the price of a job; it merely fixes its relatives worth. It presents and effort to determine the relative value of every job in a plant, and to determine what the fair basic wage for such a job should be. It is not evaluation the merit of the worker who is doing the work. It rates the job and not the qualities of the individual workers on the job, which is the task of employee rating. Objectives of Job Evaluation According to L.L.O. Report the objectives of job evaluation are: 

To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant;

To provide a standard procedure for determining the relative worth of each job in a plant;

To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community or industry;

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

To promote a fair and accurate consideration of all employees for advancement and transfer;

To provide a factual basis for the consideration of wage rates for similar jobs in a community and in an industry; and

To provide information for ‘work organisation, employees’ selection, placement, training and numerous other similar problems.

Principles of Job Evaluation Programme According to Kress, job evaluation principles are: 

Rate the job and not the man. Each element should be rated on the basis of what the job itself requires.

The elements selected for rating purposes should be easily explainable in terms and as few in number as will cover the necessary requisites for every job without any overlapping.

The elements should be clearly defined and properly selected.

Any job rating plan must be sold to foremen and employees. The success in selling it will depend on a clearcut explanation and illustration of the plan.

Foremen should participate in the rating of jobs in their own departments.

Maximum co-operation can be obtained from employees when they themselves have an opportunity to discuss job ratings.

In talking to foremen and employees, any discussion of money value should be avoided. Only point values and degrees of each element should be discussed.

To many occupational wages should not be established. It would be unwise to adopt an occupational wage for each total of point values.

Advantages of Job Evaluation An I.L.O publication claims following advantages for job evaluation:

71 Job evaluation is a logical and, to some extent, and objective method of ranking jobs relative to one another. It may help in removing inequalities in existing wage structures and in maintaining sound and consistent wage differentials in a plant or industry.

In the case of new jobs, the method often facilitates fitting them into the existing wage structure.

The method helps in removing grievances arising out of relative wages; and it improves labour-management relations and worker’s morale. In providing a yardstick, by which workers’ complaints or claims can be judged, the method simplifies discussion of wage demands and enables differences in wage to be explained and justified.

The method replaces the many accidental factors, occurring in less systematic procedures, of wage bargaining by more impersonal and objectives standards, thus establishing a clear basis for negotiations.

The method may leas to greater uniformity in wager rates, thus simplifying wage administration.

The information collected in the process of job description and analysis may also be sue for the improvement of selection, transfer and promotion procedures on the basis of comparative job requirements.

Such information also reveals that works are engaged in jobs requiring less skill and other qualities than they posses, thereby pointing to the possibility of a making more efficient use of the plant’s labor.

Limitation of Job Evaluation These are; (i) Though many was of applying the job evaluation technique are available, rapid changes in technology and in the supply and demand of particular skills have given rise to problems of adjustment. These need to be probed. (ii) Substantial differences exist between job factors and the factors emphasized in the market. These differences are wider in cases in which the average pay offered by a company is lower than that prevalent in other companies in the same industry or in the same geographical. (iii) A job frequently favours groups different form those which are facoured by the market. This is evident from the observations of Kerr and Fisher. They observe, “the jobs which tend to rate high as compared with the market are those of janitor, nurse and typist, while craft rates are relatively low. Weaker groups are better served by an evaluation plan than by the market; the former places the emphasis not on force but on enquiry. (iv) Job factors fluctuate because of changes in production technology, information systems, and division of labour and such other factors. Therefore, the evaluation of a job today is made on the basis of job factors, and does not reflect the tiem job value in future. In other words, continuing attention and frequent evaluation of a job are essential. (v) Higher rates of pay for some jobs at the earlier stages than other jobs or the evaluation of a higher in the organizational hierarchy at a lower rate than another job relatively lower in the organizational hierarchy often give rise to human relations problems and lead to grievances among those holding these jobs. (vi) When job evaluation is applied for the first time in any organisation, it creates doubts and often fear in the minds of those jobs are being evaluated. It may also disrupt the existing social and psychological relationships. (vii) A large number of jobs are called red circle jobs. Some of these may be more and others less than the rate determined by job evaluation. (viii) Job evaluation takes a long time to install, requires specialized technical personnel, and may be costly.

72 (ix) When job evaluation results in substantial changes in the existing wage structure, the possibility of implementing these changes in a relatively short period may be restricted by the financial limits within which the firm has to operate. Basic Job Evaluation Methods / Systems There are four basic, traditional systems of job evaluation; (1) The ranking systems; (2) The grading of job classification system; (3) The point system; and (4) The factor comparison system. The first two systems are popularly known as the non-analytical or non-quantitative or summary systems, because they utilize non-quantitative methods of listing jobs in order of difficulty and are, therefore, simple. The last two systems are called the analytical or quantitative systems, because they use quantitative techniques in listing the jobs. 1. The Ranking Systems Mechanism: Under this systems, all jobs are arranged or ranked in the order of their importance from the simplest to the hardest, or in the reserve order, each successary to have job descriptions, although they may be useful. Sometimes, a series of grades or zones are established, and all the jobs in the organisation are arranged into these. A more common practice is to arrange all the jobs according to their requirements by raging them and then to establish the groups or classification. The usually adopted technique is to rand jobs according to “the whole job” rather than a number of compensable factors. Merits: (i) The system is simple, easily understood, and easy to explain to employees (or a union). Therefore, it is suitable for small organizations with clearly defined jobs. (ii) It is far less expensive to put into effect than other systems, and requires little effort for maintenance. (iii) It requires less time, fewer forms and less work, unless it is carried to a detailed point used by company.

Demerits (i) As there is no standard for an analysis of the whole job position, different basses of comparison between rates occur. The process is initially based on judgment and, therefore, tends to be influenced by a variety of personnel biases.’ (ii) Specific job requirements (such as skill, effort and responsibility) are not normally analyzed separately. Often a rater’s judgment is strongly influenced by present wage rates. (iii) The system merely produces a job order and does not indicate to what extent it is more important than the one below it. It only gives us its rank or tells us that it is higher or more difficult than another, but it does not indicate how much higher or more difficult. 2. Job Classification or Grading Method

73 Under this system , a number of pre-determined grades or classificaiotns are established by a committee and then the various jobs are assigned within ech grade or class. Grade descriptions are the result of the basic job informaotn which is usually derived from a job analysis. After formulation and studying job descriptions and job specifications, jobs are grouped into classes or grades which represent different pay levels ranging from low to high. Common tasks, responsibilities, know ledge and experience can be identified by the process of job analysis. Certain jobs may then be grouped together into a common grade or classification. General jobs may then be grouped together into a common grade or classification. General grade descriptions are written for each job classification, and finally these are used as standard for assigning all the other jobs to a particular pay scale. Mechanism: The following five steps are generally involved: (i) The preparation of job descriptions, which gives us basis job information, usually derived from a job analysis. (ii) The preparation of grade descriptions, so that different levels or grades of jobs may be identified. Each grade, level must be distinct form the grade level adjacent to it; at the same time, it should represent a typical step in a continuous way and not big jump or gap. After establishing the grade level, each job is assigned to an appropriate grade level on the basis of the complexity of duties, non-supervisory responsibilities and supervisory responsibilities. (iii) Selection of grades and key jobs. About 10 to 20 jobs are selected, which include all the major departments and functions and functions and cover all the grades. (iv) Grading the key jobs, Key jobs are assigned to an appropriate grade level and their relationship to each other studied. (v) Classification of all Jobs. Jobs are classified by grade definitions. All the jobs in the same grade receive the same wage or range of rates. For examples, menials may be put into one class; clerks in another; junior officers in higher class; and the top executive in the top class. Merits: (i) This method is simple to operate and understand, for it does not take much time or require technical help. (ii) The use of fully described job classes meets the need for employing systematic criteria in ordering jobs to their importance. Since many workers think of jobs in, or related to, clusters or groups, this method makes it easier for them to understand rankings. (iii) If an organisation consists of 500 people holding to different jobs. the jobs might be broken up into perhaps 5 classes, arranged in order of importance from high to low, and described class by class. This class description broadly reflects level of education, mental skill, profit impact or some combination of these. (iv) The grouping of jobs into classification makes pay determination problems administratively easier to handle. Pay grades are determined for , and assigned to, all the job classification. (v) It is used in important government services and operates efficiently but it is rarely used in an industry. Demerits: This system suffers from the following defects: (i) Although, it represents an advance in accuracy over the ranking method, it still leaves much to be desired because personal evaluations by executives (unskilled in such work) establish the major classes, and determine into which classes each job should be placed.

74 (ii) Since no detailed analysis of a job is done, the judgment in respect of whole range of jobs may produce an in correct classification. (iii) It is relatively difficult to write a grade description. The system becomes to operate as the number of jobs increases. (iv) It is difficult to know how much of a job’s rank is influenced by the man on the job. (v) They system is rather rigid and unsuitable for a large organisation or for very varied work. 3. The Points System This method is the most widely used type of job evaluation plan it requires identifying a number of compensable factors (i.e., various characteristics of jobs) and then determining degree to which each of these factors is present in the job. A different number of points is usually assigned for each degree of each factor. Once the degree to each factor is determined, the corresponding number of points of each factor is added and an overall point value is obtained. The point system is based on the assumption that it is possible to assign points to respective factors which are essential for evaluating an individual’s job. The sum of these points gives us an index of the relative significance of the jobs that are rated. 4. The Factor Comparison Method Under this system, jobs are evaluated by means of standard yard sticks of value. It entails deciding which jobs have more of certain compensable factors than others. Here, the analyst or the Evaluation Committee selects some ‘key’ or ‘benchmark’ jobs for which there are clearly understood job descriptions and counterparts in other organizations, and for which the pay rates are such as are agreed upon and are acceptable to both management and labor. Under this method, each job is ranked several times-once for each compensable factor selected. For example, jobs may be ranked first in terms of the factor ‘skill’. Then they are ranked according to their mental requirements. Next they are rank according to their ‘responsibility’, and so forth. Then these ratings and combined for each job in an over-all numerical rating for the job. Essentials of Success of Job Evaluation Programmes When it is finally decided to install a formal system of job evaluation irrespective of which system is decided upon, the utmost care must be exercised to ensure that human as well as technical aspects are taken into account. In order that a job evaluation system works efficiently, it is necessary that all those who are concerned with job evaluation should be fully conversant with the techniques and implications of the different available systems. Otherwise, the chances of success are doubtful. The following measures may be adopted. (i) Supervisors should have full knowledge of the system. They should understand it, and be able to explain to their people the purpose of the plan and how it works. They must accept the desirability of the plan, for it they are not convinced that it is useful, they will certainly not be able to convince the employee. (ii) Supervisors as a group should receive a thorough training in advance of the actual introduction of the plan to enable them to explain the policies, principles and procedures to anyone who wants to understand them. (iii) The management must give the widest publicity to every phase of the programme, utilizing employee publications, notice boards, departmental meetings and letters to employees’ homes. (iv) Separate pay structures should be maintained for major groups of employees. For example, it would be difficult to work out a plan equally applicable to factory workers, office workers, salesmen, and departmental heads. The wages that are offered must be at or about the prevailing rte in order that there may be a successful completion for capable people. (v) Whatever plan or system is selected for each group will arouse some fears or apprehensions. To overcome these, the details of the administration of the plan should be as simple as possible, and the management should endeavour to involve a broad range of employees from a number of departments.

75 According to the findings of the International Relations Sections of the Princeton University, the following conditions are necessary for the successful operation of a job evaluation programme. (a) It must be carefully established by ensuring that: i.

The management’s aims are clear to all concerned and that not only the manual workers but also all levels of supervision and management employees fully understand its implications; and


All the relevant internal and external factors have been taken into account in arriving at the final form of the scheme.

(b) It must have the full approval and continued support and backing of the top management. (c) It must have obtained the acceptance of trade unions. (d) Adequate administrative control must be set up to ensure: i.

A centralized coordination of the scheme;


The evaluation of new and changed jobs;


A proper control of individual rate ranges;


The conduct of wage surveys to provide the necessary information about the intra-plant ranges.

(e) The importance of factors, other than job content, in wage rate determination (employment market conditions, sex, wage differentials, geographical wage differentials, and the relative bargaining power of the management and the trade union) must be recognized and taken into consideration while launching a job evaluation programme. (f) Before launching a job evaluation programme certain issues should be decided beforehand. There are: i.

Which category of employees are to be covered (i.e., whether hourly padi job or salaried job employees) and upto what range?


Who will evaluate a job – outside consultants or trade analysts or the personnel of the personnel department?


How will the employees be consulted in regard to the method of putting the programme through? and


Does a proper atmosphere exist for launching of the programme?

Some Suggestions We suggest the following measures and steps for improving the working of evaluations programmes. 1. A job evaluation scheme should be chosen cautiously. It should be devised and administered with due regard to the conditions of the employment market, which cannot be ignored if the scheme is to be successful. It should, therefore, reflect those forces which are important in the market, e.g., relative supply of and demand for labour, bargaining power of the parties and job conditions. 2. The details of a scheme should be drawn up in such a way that they do not conflict with other provisions of Collective Agreement such as, for example, seniority clauses and grievances procedure.

76 3. The scheme should be introduced on a plant-to-plant basis than applied to a whole industry. This is because it is difficult to standardize jobs throughout an industry unless the plants in it are so familiar that they can be treated as being virtually a single firm. 4. The scheme should be sold to all concerned and suggestions sought. If the workers in a plant are unionized, it is highly desirable that any scheme adopted should be agreed to and, if possible, developed jointly by the company and the trade unions. 5. It is of major importance that the number of job titles and classifications be kept to a minimum. If they are not, a scheme becomes too inflexible because of the narrow covered of he job descriptions. Promotions within a grade become more serious. Moreover, workers tend to feel more insecure and cling to their present jobs because they may not have the qualification for another job. 6. Any anticipated changes in methods should be carried out before a scheme is installed and all modifications in it should be resisted until it becomes fully established. 7. In preparing job descriptions it is sound practice to emphasize in the them the things which make on job different from another rather than to find a comprehensive statement all the duties of the jobs. 8. A scheme which provides for single rates and for definite ratios between the rates for classes of workers (A, B, C, etc.) within a job grade is easier to administer than one which establishes rate ranges and has no fixed ratios. 9. A scheme is better administered by the Individual Relations staff of a company than by the Industrial Engineers who may have developed it. The essence of successful administration of a scheme is flexibility, and this is better understood by those engaged in industrial relations work than Industrial Engineers. 10. The better the state of industrial relations the easier it is to introduce a job evaluation scheme. Wage differentials arise because of the following factors: (a) Differences in the efficiency of the labor, which may be due to inborn quality, educations, and conditions under which work may be done. (b) The existence of non-competing groups due to difficulties in the way of the mobility of labour from low paid to high paid employments. (c) Differences in the agreeableness or social esteem of employment. (d) Differences in the nature of employment and occupations. The nature and the extent of wage differentials are conditioned by a set of factors such as the conditions prevailing in the market, the extent of unionization and the relative bargaining power of the employers and workers, the rate of growth in productivity, the extent of authoritarian regulations and the centralization of decision-making, customs and traditions, the general economic, industrials and social conditions in a country and a host of other subject and objective factors operating at various levels. The prevailing rates of wages, the capacity of an industry to pay, the needs of an industry in a developing economy, and the requirements of social justice also directly or indirectly affect wage differentials. Wage Differentials in India Due to the paucity of relevant data on wage differentials, it is not possible to analyze them in India; yet the main features of the Indian wage structure may be stated thus: “As a characteristic of the unorganized labour market, personal differentials because of job selling, individual bargaining and wage discrimination have tended to persist in India, especially in the unorganized sector of economy, and even in the organized and unorganized sections in industry.”

77 The tendency appears to be towards the elimination of wage differentials because of government interference through the fixation of the minimum wages and, of late, through the appointment of Wage Boards and pressures from trade unions. Wage differentials by sex are quite common. Both economic and social reasons account for this phenomenon. Despite the fact the Constitution of India enjoins upon the State to direct its policy towards securing “equal pay for equal work” for men and women, awards of some industrial Tribunals provide for “different wages for men an women workers, not on the ground that the work done is unequal but on the ground that the wages of women workers support a smaller family, that the cost of employing women workers is higher.” As regards inter-firm and inter-industry differentials in India, the former were quite important and frequent in the past, particularly in the jute mill industry. Of late, however, there has been a tendency towards the elimination of inter-firm differentials. The forces which tend to eliminate inter-personal differentials in the country operate in this case as well.

78 UNIT – V Employee Maintenance and Integration – Welfare and safety – Accident prevention – Administration of discipline – Employee motivation – Need and measures EMPLOYEE MAINTENANCE AND INTEGRATION Objectives of Employee Maintenance and Integration through Industrial Relations In addition to their primary objective of bringing about good and healthy relations between employers and employees, industrial relations are designed (a) To safeguard the interests of labour and of management by securing the highest level of mutual understanding and good will among all those sections in the industry which participate in the process of production. (b) To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country; (c) To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequent absenteeism; (d) To establish and nurse the growth of an Industrial Democracy based on labour partnership in the sharing of profits and of managerial decisions, so that an individual’s personality may grow to its full stature for the benefit of an industry and of the country as well. (e) To eliminste, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, and fringe benefits; (f) To establish government control of such plants and units as are running at a loss or in which production has to be regulated in the public interest. The State endeavors to correct, through good and harmonious industrial relations, and imbalanced, disordered and maladjusted Social order with a view to reshaping complex social relationships following technological advances. It also controls and disciplines both employees and employers, and adjusts their conflicting interests; it protects some and restrains others, and tries to evolve a healthy social order. In other words, the objective of maintenance and integration are to facilitate production; to safeguard the rights and interests of both labour and management by enlisting he cooperation of both; to achieve a Sound, harmonious and mutually beneficial relationship between employers and employees. According to Kirkaldy, - industrial relations in a country are intimately connected with the form if its political government and the objectives of an industrial organisation may change from economic to political ends.” He divides the objectives of industrial relations into four categories. (1) Improvement in the economic conditions of workers existing state of industrial management and political government. (2) Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations; (3) Socialization or rationalization of industrial by making the state itself a major employer; and (4) Vesting of a proprietary interest of the workers in the industrial in which they are employed. If political objected are likely to contribute to disunity in the trade union movement, it would be necessary to provide better and more effective safeguards and exercise greater restraint in order to avoid such a situation.

Participants/ Variables in Maintenance and Integration

79 The industrial relations system is an organisation of recognized major variables which exert a controlling influence on them. Yoder observes: “Industrial relationship is the designation of a whole field of relationships which exist because of the necessary collaboration of men and women in the employment process of an industry.” Dunlop has added a new dimension to these inter—relations. He says “Indus trial societies necessarily create industrial relations, defined as the complex of inter-relations among workers, managers and government” On this basis, there are there major variables (participants) in industrial relations. i.

Workers and their Organisation: Here, the emphasis is on the members of organizations, the personal characteristics workers, their cultural and educational attainments, qualification skills and attitudes to work, etc.


Managers and their Organisation: Here, the emphasis is on work groups, teams, the variations in their sizes, composition extent of specialization they impose. Provision is made for internal communication, for the structure of status and authority, a such ancillary organisation as trade unions and employers’ associations.


Role of the Government: Here, the emphasis is on the role and responsibilities of governmental agencies, the extent of official intervention, assistance and regulation of working condition working communities. These three groups – workers, employers, and the government – interact within the social and economic environment that prevails at a particular time. It is obvious, then, that every industrial relations system creates its own complex of rules and regulations which govern the place of work and the working community. These rules and regulations may take a variety of forms in different systems; there may be laws and awards of courts, committees or tribunals; there may be agreements, written or sanctioned by customer, usage, practice, or tradition, or which may be the result in government policies or intervention. The characteristics of the participants in industrial relations may, therefore, be restated in the following way (a) The Workers’ Organizations: These are mainly political in situations – associations of employees formed and maintained for the specific purpose of wresting concessions from employers. They acquire power, status and authority by reason of the support they enjoy of their members, their power is used to fetter a management’s discretion and pressure it into yielding to their demand for better and higher wages, for improvement, in their working conditions, for better and more amenities and welfare schemes, etc. As a matter of fact, a trade union if often looked upon as a conflict association, which has strong political and emotional overtimes. (b) The Employers’ Organisation: These are voluntary bureaucratic institutions which are hierarchical in nature and which place reliance on specialization and division of labor for the attainted of their objectives. They coordinate their activities through a system of graded authority, and make use of a direct system of communication for their orders and directives. (c) The Government: This is a very large bureaucratic organisation, though it may often be a democratic one as well. It tries to regulate the relationships of employers and employees, and keeps an eye on both groups to keep each in line. This relationship is enforced and maintained through labour courts, industrial tribunals, wage boards, investigating and enquiry committees, which lay down principles, norms, rules and regulations, and give awards. All these are placed on the statue book and have to be observed by workers and employers as well.

Aspects of Employee – Employer Integration It should be noted that the concept of industrial relations has a very wide meaning and connotation. In the strictest sense, it refers to, employer-employee relationships, that is, the relationship which emerges from the day-to-day association of management and labour. In its wider sense, the concept includes the relationship between employer and employee in the course of the running of an industry, and may project itself into spheres which may cover the areas of quality control, marketing, price fixation and disposition profits. However, the phrase industrial relations is generally the narrower sense.

80 An industry is a social world in miniature. As an association various persons – workers, supervisory staff, management and employers – it creates an industrial relationship. This association often affects and influences, for better or worse, the economic, and political life of the whole community, in other words, industrial life creates and series of social relationships which have an impact only on the relations between employers and employees but also on the industry as a whole and on the community at large. Industrial relations are, therefore, an inherent aspect of industrial life, and may be classified under the following categories. (a) Labour-management relations at plant and industry level. (b) Group relations among various groups of workers. (c) Community relations between industry and society. Here, we are concerned with the first category. The main purposes of industrial relations are: (1) Development of healthy labour – management relations; (2) Maintenance of industrial peace and avoidance of industrial strife; and (3) Development and growth of industrial democracy. (1) Development of healthy labour – management relations; The promotion of healthy labour – management relations presupposes (a) The existence of strong, well-organized, democratic and responsible trade unions and associations of employers in an industry. These organisation help bring about a greater sense of job security among the employees, and assist in the workers’ increased participation in decision-making, particularly in those decision which affect the terms and conditions of their employment, ensure that labour has a dignified ‘role to play in society. They also to create favourable conditions for negotiations, consultations discussions with employers so that these may gave the way to better labour-management relations. (b) Collective bargaining and a willingness to accept voluntary arbitration. Collective bargaining pre-supposes an equality of a between two contending groups which are in conflict with each and prepares the ground for mutual trust and goodwill which ensure fair discussion, consultation and negotiation on matters of common interest to both industry and labor. Collective bargaining, plant discipline and satisfactory trade union relations, are the principal items which determine the quality of industrial relation. (c) The welfare work undertaken by the government, the trade unions and employers creates and maintains good and labour – management relations and paves the way for industrial peace. (2) Maintenance of Industrial Peace: Industrial harmony and peace can be established if: (a) A machinery for the prevention and settlement of industrial dispute is provided in the form of legislative enactments and administrative action (for example, the Trade Union Act, the Industrial Disputes Act, and Industrial Employment Act); works committees and joint management councils; conciliation officers and conciliation boards; labour courts, industrial tribunals, national tribunals, courts of enquiry; and voluntary arbitration; (b) The government has armed itself with appropriate powers to refer disputes to an adjudicator when the situation gets out of control and the industry is faced with economic collapse because of strikes, or when it is urgent and in the public interest to so refer disputes for adjudication; (c) The government has the power to maintain the status quo, and exercises it when id discover that, after a dispute has been referred to an adjudicator, a strike or lockout continues, and that strike or lockout is likely to adversely affect the economic life of the community or create chaotic conditions in an industry.

81 (d) There is provision for bipartite and tripartite forms of the settlement of disputes which operate on the basis of the Code of Discipline in Industry, the Code of Conduct, the Code of Efficiency and Welfare, and on the basis of Model Standing Orders, Grievance Redressal Procedure and the grant of voluntary recognition to trade unions by industrial organizations; and (e) There is provision for bipartite and tripartite forms of the settlement of disputes which operate on the basis of the Code of Discipline in Industry, the Code of Conduct, the Code of Efficiency and Welfare, and on the basis of Model Standing Orders, Grievance Redressal Procedure and the grant of voluntary recognition to trade unions by industrial organizations; and (f) Implementation and Evaluation Committees are created and maintained for the specific purposes of ensuring the implementation of agreements, settlements and awards, and of looking into any violations of statutory provisions of the various labor laws. (iii) Industrial Democracy: An Industrial democracy can be established in a country if (a) There are Joint Management Councils which endeavour to improve the working and living conditions of employees, to step up their productivity, to encourage suggestions from workers, to assist in the administrations of labour laws and agreements, to serve as a channel of communication between management and workers, to create in latter of sense of participation in the decision – making process and a sense of belonging to an organisation; (b) There is a recognition of human rights is an industry – a recognition of the fact that “labour is no longer an article r a commodity of commerce” which can be bought and disposed of at the whims and caprices of an employer; the workers are human beings who should be treated as human beings, who should allowed to develop and keep their self-respect, so that understand and appreciate their role in the organisation to they belong, and their urge for self – expression, through association with the management, may be satisfied; (c) There is increased labour productivity. The factors contribute to higher productivity are improvement in the effort skills of the workers; improvements in the production design an process of manufacture, in the materials and equimen used layoug and methods of work; improvements in research and in techniques of manufacture, including special studies of technology developments in the industry elsewhere in following capital intensification within the framework of the same technology; and improvement in management methods and practice and (d) There is suitable material and social environment, to which workers may adjust and adopt themselves while they are at work in an organization, for it is this environment which would stimulate or depress them, which would improve or harm labor-management relations, particularly if we bear in mind the fact that the environmental grievances of works have a profound influence on industrial relations. It is obvious from the foregoing that the function of industrial relations is to bring about solutions of conflicts between labor and management – conflicts between objectives and values, between the profit motive and social gain, between discipline and freedom, between authority and workers, between bargaining and cooperation; and these solutions should be in the interests of the individual, the group and the community. In a dynamic society, industrial relations should be based on an integrated and synthetic approach, and should aim at the development of a common social, cultural and psychological understanding on the one hand and restraining the conflict or struggle complex on; the other. The philosophy behind industrial relations in a democratic set-up is to ensure the dignity and welfare of the individual, so that he – may develop into a good citizen, so that he may be free from domination, regimentation or arbitrary authority, whether this authority is exercised by a management, trade union officials or government officials. INDUSTRIAL RELATION PROGRAMME Today’s professional industrial relations director, or by whatever title he is designated, no longer views hi job as personalizing management, or that of a social workers in a factory, or a union buster. He looks upon his departments as an adjunct to management supervision at all levels; he keeps other executives informed about new

82 discoveries, programme trends and needs. At the same time he provides efficient service in the operation of several centralized services. A successful industrial relations programme reflects the personnel viewpoint, which is influenced by three main considerations (a) Individualized thinking; (b) Policy awareness; and (c) Expected group reaction. Individualized thinking makes it imperative for the administrator to consider the entire situation in which the affected individual is placed. Policy awareness underscores the idea of the consistency of treatment and the precedent value of any decision which a management takes; while expected group reaction balances what we know of human nature in groups against in individual’s situation in the light of the policy that have been formulated and implemented. In all these different circumstances, reality demands that all the three aspects of he personnel viewpoint should be considered at once in terms of the levels of management – from the top to the bottom, from the top executives and staff to the line and supervisory personnel. Scope of Industrial Integration Work The Staff employed in the industrial relations department should know the limitations within which it has to function. The industrial relations director generally has several assistants who help him to perform his functions effectively; and he usually reports directly ‘to the president or chairman of the board of directors of an organisation. The functions of the industrial relations staff are: (i)

Administration, including overall organisation, supervision and coordination of industrial relations policies and programmes.


Liaison with outside groups and personnel departments as well as with various cadres of the management staff.


The drafting of regulation rules, laws or orders, and their construction and interpretation.


Position classification, including overall direction of job analysis, salary and wage administration, wage survey and pay schedules.


Recruitment and employment of workers and other staff.


Employment testing, including intelligence tests, mechanical aptitude tests and achievement tests.


Placement, including induction and assignment.


Training of apprentices, production workers, foremen and executives.


Performance reports or merit ratings.


Employee counselling on all types of personnel problems educational, vocational, health, or behaviour problems.


Medical and health services.


Safety services, including first aid training


Group activities, including group health insurance, housing cafeteria programmes and social clubs.


Suggestion plans and their uses in labour, management and production committees.

83 (xv)

Employee relations, collective bargaining representatives, and settling grievances.


Public relations


Research in occupational trends and employee attitudes, and analyses of labour turnover.

(xviii) Employee records for all purposes. (xix)

Control of operation surveys, fiscal research and analysis


Benefit, retirement and pension programmes

An idea of an industrial relations programme in a typical industrial organisation may be had from Chart. Functional Requirements of a Successful Industrial Relations Programme The basic requirements on which a successful industrial relations programme is based are (a) Top Management Support: Since industrial relations is a functional staff service, it must necessarily derive its authority from the line organisation. This is ensured by providing that the industrial relations director should report to a top line authority – to the president, chairman or vice president of an organisation; (b) Sound Personnel Polices: These constitute the business philosophy of an organisation and guide it in arriving at its human relations decisions. The purpose of such policies is to decide, before any emergency arises, what shall be done about the large number of problems which crop up every day during the working of a organisation. Policies can be successful only when they are followed at all the levels of an enterprise, from top to bottom (c) Adequate practice should be developed by professionals the field to assist in the implementation of the policies of organisation. A system of procedures is essential if intention is to be properly translated into action. The procedures and practices of industrial relations department are the “tools of management” which enable a supervisor to keep ahead of his job that the time keeper rate adjuster, grievance reporter and merit rater. EMPLOYEE WELFARE AND SAFETY Employee Safety Employee welfare, safety and health problems at work have been engaging attention of the psychologists, sociologists and industrial engineers Psych are concerned with the theoretical considerations of accident causation and the research into accident control, through proper selection, training and education of the employee: and the social and psychological factors that influence the individual’s behaviour in general. Engineers and safety officers usually render necessary practical advise on certain aspects of safety in industry. They look upon prevention of accidents basically as an engineering problem to be tackled through proper designing of mechanical safety devices. In fact, accident prevention and safety are inter related and, therefore, require a multi-dimensional approach. Its importance had increased because of large-scale industrialization in which human beings are subject to mechanical, chemical, electrical and radiation hazards. Besides, modern industry is characterized by complicated mechanisms, intricate job requirements, and fast moving production lines. One of the important consequences of all this is increased dangers to human life, through accidents.

Industrial Accident and Industrial Injury The life of industrial workers is full of risks and hazards. Every year lakhs of employees are injured in factories, mines, railways, ports and docks, leading to acute ailments or permanent handicaps. The injuries may be caused as a result of any unsafe activity, or act on their part or chance occurrences (like walking past a plate-glass window just as someone hits a ball through it) or as a result of some unsafe work conditions or unsafe acts of

84 employees themselves, or defective plant or shop lay out, inadequate ventilation, unsafe and insufficient lighting arrangements, or insufficient space for movement inside the plant or shop, etc. An industrial accident may be defined as “an occurrence which Interrupts or interferes with the orderly progress of work in an industrial establishment”. According to the Factories Act of is ‘an occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to resume his duties in the next 48 hours”. In other words, it is an unexpected event neither anticipated nor designed to occur. It is always sudden gradual process does not constitute an accident. Moreover event or occurrence should be so to which a definite time, data and place can be assigned. It must arise in the course of employment in a factory or an industrial establishment. He self inflicted injuries or injuries inflicted with the consent person cannot be regarded as accidents. An industrial in has been defined as “a personal injury employee which has been caused by an accident or an occupations disease, and which arises out of, or in the course of, employ and which would entitle such employee to compensation under Workmen’s Compensation Act, 1923” Nature of Accidents The nature of an accident may vary from industry to industry. An employee may fall from a height while engaged on a particular assignment; or he may be caught in a machine while working or he may fall against an machine; or parts of a machine having a horizontal protruding motion may strike against him; or explosive used carelessly may explode, and injure an employee. Accidents may result in disablement or death. Disablement – whether partial or total – way take the from loss of ability to work or to more. Such incapacity may be partial or total. Both types of disablement may be temporary or pert A temporary partial disablement reduces the earning capacity of individual in the employment in which he was engaged when he sustained an injury at the time of the accident; while a permanent partial disablement is that which reduces his ability to earn income from an employment which he was capable of under at the time the accident occurred. He is entitled to compensation only to the extent to which his ability to earn is reduced impair. Total disablement, on the other hand, is a disablement, whether temporary or permanent, which incapacitates a workman makes it impossible for him to engage in any work which he capable of performing at the time of the accident which resulted that disablement. In these circumstances, he is entitled to compensation. Causes of Accidents Accidents are usually the result of a combination of factors, each one of which may very from situation to situation combination may be of unsafe acts and equipment, of people, factors and conditions. It has been rightly said that an accident does not have a single cause but a multiplicity of causes, which are often closely related. According to safety experts there are three basic causes/factors that contribute to accidents in organisation. Chance occurrences, unsafe conditions and unsafe acts on the part of employees. 1. Unsafe Conditions (work – related causes): These, of one sort or another, are the biggest cause of accidents. Such causes are associated with defective plants, equipment, tool, materials, buildings, etc. These can be termed ‘technical causes’. They arise when there are improper or inadequate safety guards on machines; when machines break-down; when improper personal protection equipment is installed; when mechanical or construction designs are defective and unsafe; and when control devices, which have been installed to make the operations of machines safe and accident free are lacking or defective; or when there is an absence of proper maintenance and supervision of these devices. Thus, unsafe conditions include (i)

Improperly guarded equipment.


Defective equipment.


Hazardous arrangement or procedure in, around, machines or equipment.

85 (iv)

Unsafe storage; congestion; overloading;


Inadequate safety devices


Wrong and faulty lay out, and bad location


Improper illumination – glare, insufficient light.


Improper ventilation – insufficient air charge, impure air source


Poor house-keeping

The other work related causes of accidents are: (a) The job itself: Some jobs are inherently more dangerous than others, such as the job of craneman in comparison to that of the foreman. Similarly, work in some departments (like personnel) is inherently safer than the work (line production department). (b) Work schedules: Accidents increase late in the day. They do not usually occur during the early hours of the work day. They are more frequent during the night shift. This is due partly to fatigue partly to the fact that night is the when one requires rest. (c) Psychological climate of the work place: also affects the accident rate. Psychological, mental and emotional imbalances are at the root of several accidents. Emotionally disturbed and mentally pre-occupied persons meet more accidents than a normal person. The psychological factors associated with accidents are fatigue, anxiety, ness, overwork, monotony, boredom, lack of self-co-incidence, and frustration. Fatigue often has a psychological origin, and may jhdfkjdf gdsflgkdgdf gdsfgkdjgkdfglkdfdf dkjdfkd kjdjdsd fgjdskgjdgkd dk gdkgj dkgjdkgdkg dg ddsg dg dgdkgdkgdfddsfgj gdskjd ds s social prestige.(Page No. 142) (d) Unsafe Acts: These acts may be the result of the knowledge or skill on the part of the employee, certain bodily and wrong attitudes. These acts include acts like: (i)

Operating without authority


Failing to secure equipment or warning other employees of possible danger.


Failing to use safe attire or personal protective equipment


Throwing materials on the floor carelessly.


Operating or working at unsafe speeds, either too fast or too low.


Making safety devices inoperative by removing, adjusting disconnecting them.


Using unsafe equipment, or using equipment unsafely.


Using unsafe procedures in loading, placing, mixing, combining.


Taking unsafe positions under suspended loads.


Lifting improperly.


Cleaning, adjusting, oiling, repairing, etc. motive a dangerous equipment.


Distracting testing, abusing, starting, quarreling, day dreamining, horseplay.

3. Other Causes : These causes arise out of unsafe situational and climate conditions and variations-such as bad working conditions, rough and slippery floors, excessive glare, heat, humidity, dust and fume-laden atmosphere; very

86 long hours of work; unsatisfactory behaviour of domineering supervisor; excessive noise and carelessness in the handling of such inflammable materials such as gasoline, oil and grease, explosives, etc. Certain broad conclusions can be drawn on the basis of experience and studies undertaken by psychological, such as: (i)

Young, untrained and new workers generally injuries more frequently than older, train experienced employees.


Those addicted to alcoholism and drugs, and those suffer from boredom and fatigue or indulge in exhibitionism, generally account for a higher rate of accidents.


Unmarried employees generally have more accidents married employees.


Accidents are more frequent during the night shift


Women employees have a better safety record than – male counterparts.


Workers who work under stress, or who feel their jobs are threatened or insecure, seem to have more accidents those who do not.

SAFETY EDUCATION AND TRAINING Employees should be taught the principles of first aid, the need for avoiding machine hazards, for taking precautions to prevent the outbreak a fire, for using hand tools properly and for protecting his eyes. Safety publicity should be undertaken by displaying posters screening films, and by arranging safety suggestion schemes. Safety Contests: Some companies encourage safety competitions among their departments with a view to bringing a reduction in the number of accidents. Disciplinary Action : to enforce plant rules governing safety, employees are reprimanded, fined, laid off or even discharged are found guilty of any violations. While positive motivation to ensure the observance of safety rules is looked upon as the approach to the problems of safety, a negative motivation, in form of punishment, does have its own proper place in safety programmes. Accident Analysis and Tabulation: The safety director must investigate and report on every accident. He should, moreover periodically summaries all the injuries which have been sustained employees during a particular period of time, and classify the plant-wise, department-wise, and shift-wise. He should classify the causes and kinds of those injuries, and mention whether they were disabling or not. Records are useful because they help to identify the areas in which further action is called for the achieve improvement in safety programmes and compare the records with the past ones. Statutory Provision for Safety in India The Factories Act contains specific provisions for the safety of workers. These are referred to in sections 21 to 40. They are Fencing of Machinery: it is obligatory on the part management to fence machinery with guards of a subs construction, which shall be maintained and kept in position when any part of the machinery is in motion. Work on or Near Machinery in Motion: Any examination, adjustment or lubrication of nay part of an operating machine shall be effected or carried out by a specially trained male worker wearing tight-fitting clothing. This worker, however, shall not handle a belt on a moving pulley. (a) If the belt is more than fifteen centimeters in width; (b) Unless the belt joint is either laced or flushed with the belt; (c) Unless the pulley is normal for the purpose of a drive and not a fly-wheel or a balance wheel;

87 (d) Unless the belt, including the joint and the pulley rim, is in a state of good repair; (e) Unless there is a reasonable clearance between the pulley and any fixed part of a machine or structure; (f) Unless a secure foothold and, where necessary, a secure handhold are provided for the operator; and (g) Unless the ladder to be used for carrying out any examination, adjustment or lubrication of any part of a machine is securely fixed or lashed or is firmly held by another person. No woman or adolescent is allowed to clean, lubricate or adjust any part of a machine which is in motion if it is likely to expose her or him to the risk of injury from nay moving part. Employment of Adolescents on Dangerous Machines: No adolescent shall be allowed to work on any machine which posses a danger to him unless. (a) He has been fully instructed to beware of the particular danger that is likely to arise from the machine and to observe the necessary precautions; and (b) He has received training on that machine or is under the supervision of a person who has a thorough knowledge of and experience in working on, the machine. Striking Gear or Device for Cutting off Power: in every factory, a suitable striking gear or other efficient mechanical appliance shall be provided and maintained. Driving belts, when not in use, shall not be allowed to rest or ride on a shaft in motion Suitable devices for Cutting off power in an emergency shall be provided and maintained in every work room. When a device, which is likely to be inadvertently shifted from the “off” to the “on” position, is provided in a factory to cut off Power arrangements should be made to lock it in a safe position with a view to preventing any accidental starting of the transmission machinery or any other machines to which the device is fitted. Self-Acting Machines: No transverse part of self-acting machine and no material carried thereon shall be allowed to run on its outward or inward transverse within a distance of 45 centimeters from any fixed structure which is not a part of the machine. Prohibition of Employment of Women and Children Near Cotton-Openers: No woman or child shall be employed in any part of a factory to press cotton when a cotton-opener is at work. But if the feed end of a cottonopener is in a room which is separated from the delivery-end by a partition extending to the roof or to such height as the factory inspector may specify in writing, women children may be employed in that part of the room in which feed end is situated. Hoists and Lifts: In every factory, hoists and lifts shall be good mechanical construction and of sound material; and they shall be sufficiently strong and properly maintained. Every hoist-way lift-way shall be adequately protected by a proper enclosure fitted with gates. The maximum safe working load shall be clearly indicated on every hoist or lift. A heavier load shall not be allow be carried on that hoist or lift. Lifting Machines, Tackles, Chains and Ropes: In every factory, lifting machines, tackles, chains and ropes shall be of good construction and of sound material. The shall be free from def and strong enough to carry the necessary loads. Revolving Machinery: In every room in which grinding jobs carried on, a notice indicating the maximum working speed of, machine shall be fixed near it. Pressure Plant: In any operation which is carried on pressure which is higher than the atmospheric pressure, effective measures should be taken to ensure that the safe working pressure is not exceeded. Floors, Stairs, and Other Means of Access: All doors, step, stairs, passages and gangways shall be of sound construction a shall be kept and maintained in a state of good repair; and they shall be free of obstructions. No substance, which is likely to cause a person to slip, shall be kept near them.

88 Necessary provision should be made for secure handhold fencing to ensure the safety of persons working at a place from where he is likely to fall from a distance exceeding two meters. Pits and Openings in Floor: In every factory, every fixed tank, pit or opening in the floor, which may be a source of danger, shall be securely covered or securely fenced. Excessive Weights: No person shall be employed in an to lift, carry or move any load which is so heavy as to cause him a possible injury. Precautions Against Dangerous Fumes: No person employed in a factory shall be allowed to enter any chamber, tank, vat, pit, flue or such other confined place in which dangerous fumes are likely to be present to such an extent as to constitute a hazare unless such chamber, tank vat, pit, or flue is provided with a manhole of a large enough size of with similar other means of egress. Precautions Against the Use of Portable Electric Lights: In any factory: (a) No portable electric light or nay other electric appliance of a voltage exceeding 24 volts shall be permitted for use inside and chamber, tank, vat, pit, flue, or confined place; (b) If any inflammable gas, fume or dust is likely to be present in such chamber, tank, vat, pit, flue, or confined place, no lamp or light other than the one which is flame-proof, shall be permitted to be used therein. (c) Explosive or Inflammable Gas or Dust: When, in any factory. Any manufacturing process produced dust, gas, fume or vapour of such nature and to such an extent that is likely to explode on ignition, all practical measures shall be taken to prevent such explosion by a. An effective enclosure of the plant or machinery used in the process; b. The removal or prevention of accumulated dust, gas or fume; and c. The exclusion or effective enclosure of all possible sources of ignition. Precautions in Case of Fire: The following precautions shall be taken a. Exit doors shall not be locked or fastened and shall be capable of being easily opened; and they shall be so constructed as to open outwards; b. Proper means of escape shall be provided every industrial establishment; c. Every door, window or other exit, through which persons can escape in the event of a fire, shall be distinctly marked in red letters in a language that is understood by workers; d. Proper arrangements shall be made to raise an alarm in the event of a fire; it would be preferably if a siren is sounded so that workers may recognize the signal as an indication that a fire has broken out somewhere in the factory premises; e. All the exits should be easily and freely accessible to all the workers in every place in the factory premises, so that they can easily make their escape when a fire breaks out; and f.

A the workers shall be trained in the routine to be followed in the event of a fire in the factory premises.

Safety of Building and Machinery: When a building or machinery poses a danger to workers, it shall not be used till it has been suitably repaired or altered. Administration of Discipline The word discipline connotes that the members of the group should reasonably confirm to the rules and regulations which have been framed for it or by it so that every one may benefit by them.

89 Discipline – Meaning It observed the rules, regulations and procedure which are deemed to be necessary to the attainment of an objective; it is force or fear of force which restrains an individual or a group form doing things which are to be destructive of the group objectives. It is also the exercise of restraint or the enforcement of penalties of the violation of group regulations.” According to the Webster’s Dictionary the word discipline means it is the ‘training that corrects, moulds, strengthen or perfects’. According to Ordway Tead: “discipline is the orderly conduct of affairs by the members of an organisation who adhere to its necessary regulations because the desire to co-operate harmoniously in forwarding the end which the group has in view, and willingly recognize that, to do this their wishes must be brought into a reasonable unison with requirements of the group in action. The Characteristics of Discipline may be noted as below 

It is determinative and positive willingness which prompts individuals and groups in congruence.

It is negative approach which encourages individuals to undertake some activities and which restrains then form undertaking others.

It is a punitive or a big stick approach.

Aim and objective of Discipline

To obtain a willing acceptance of the rules, regulations and procedures of an organization so that organizational goals may be attained.

To impact an element of certainly despite several differences in informal behaviour patterns and other related changes in an organisation

To develop among the employees a spirit of tolerance and a desire to make adjustments.

To give seek direction and responsibility

To create an atmosphere of respect for the human personality and human relations and

To increase the working efficiency and morale of the employees so that their productivity is stepped up, the cost of production brought down and the quality of production improved.

Form and Types of Discipline 1. Positive or Self – Impose Discipline is also called as co-operative discipline or determinative discipline. 2. Enforce or Negative Discipline it is also known as Punitive, Corrective or autocratic discipline. Causes of Indiscipline and Misconduct

90 The rules of discipline, which a person is called upon to accept, must not, however, violate the rights of the individual, These rights are: 

The right of every man to be treated as an individual and respected as a person.

The right of every man to have a voice in his own affairs, which includes his right to contribute, to the best of his ability, to the solution of common problems.

To right of every individual to have recognition of his contribution to the common good.

The right of every person to develop his higher abilities and to make use of them.

The right of every man to justice and hair play.

To right to get fair wages for the work he has done; and

The right to security of service.

The main causes of indiscipline are •

Non-placement of the right person on the right job.

Undersirable behaviour of senior to the sub-ordinates

Favoritism been used at the time of performance appraisal

Lack of up-ward communication

Weak, flexible, incompetent and distrustful leadership

Defective supervision

Lack or proper drawn rules and regulation

The “drive and rule” policy of the management

Illiteracy and low intellectual level of workers

Workers reaction towards the rigidity and multiplicity of rules

Workers personnel problems

Bad working conditions

Inborn tendencies to violate the rules

Absence of futures thinking

Errors of judgement by the top management

Discrimination based on caste, colour, languages, gender.

Undesirable management practices

Improper coordination, delegation of authority

Psychological and sociological reasons

91 Principles for Maintenance of Discipline Yoder, Heneman, Turnbull and Harold Stone have outlined the principles for maintenance of Discipline are:  With the consultation of representative of employees rule should be framed.  Rules should be appraised at frequent and regular intervals  Rules should very with changes in the working conditions of employees  Uniform enforcement of rules will bring the effectiveness  Advance intimation regarding the violation of rules must be handled  Extreme caution should be exercise to ensure that infringements are not encouraged. Basic Ingredients or Guidelines of a disciplinary action: The principles ingredients of a sound disciplinary system are 

Correct location of responsibility

Proper formulation and communication of rules

Rules and regulation should be reasonable

Equal treatment should be maintained

Disciplinary action should be taken in private.

Importance of promptness in taking disciplinary action

Innocence is presumed

Get the facts

Action should be taken in cool atmosphere

Natural justice should be followed

After a disciplinary action has been taken the supervisor should treat his subordinate in a normal manner

Don’t Backdown when you are right.

Negative motion should be handled in a positive manner.

Procedure for disciplinary action The specific procedures should be followed at the time of disciplinary action are: 1. An accurate statement of the disciplinary problem should be prepared 2. Collection of data or facts bearing on the case must be organized 3. Selection of tentative penalties to be imposed 4. The choice of the penalty should be decided 5. Implementing the penalty

92 6. Follow-up on disciplinary action EMPLOYEE MOTIVATION : Usually one or more of these words are included in the definition: 








‘Motivation’ is a Latine word, meaning ‘to move’. Human motives are internalized goals within individuals as Bereson and Steiner: ‘A motive is an inner state that energizes, activates, or moves and directs or channels, behaviour toward goals’ According to Standford and Wrightman describe a motive thus: ‘it is a restlessness, a lack, a force,. Once in the grip of a motive, the organism does something. It most generally does something to reduce the restlessness, to remedy the lack, to alleviate yen, to migrate force. Motivation defined by Lillies: “It is a stimulation of any emotion or desire operating upon one’s will and prompting or driving it to action”. According to the Encyclopedia of management: “Motivation refers to degree of readiness of an organism to pursue some designated goal, and implies the determination of the nature and locus of the forces, including the degree of readiness.” Objective of Motivation The purpose of motivation is to create conditions towards the people who are willing to work with – Zeal -







High personal and group moral satisfaction


With the sense of responsibility


Loyalty and discipline


Pride and confidence


In a cohesive manner

With the all above said factors the goals of an organisation are achieved effectively.

Classification of Motives According to Murray, motives been classified into five types: 1. Homeostatic Motives (such as motives for thirst, hunger, rest, sleep); 2. Sexual Motives are powerful motives and their influence upon work behaviour can be very pronounced;

93 3. Emotional Motives (such as fear, anger, range, hate, terror, anexiety, love, etc.). Individual commit themselves to occupations, jobs, organizations and work groups as a result of their emotional motives; 4. Intrinsically Motivated Behaviour (such as curiosity, cognition); and 5. Social Motives (achievement motivation and affiliation motivation) Types of Motivation 1. Positive or Incentive Motivation: According to Flippo, ‘Positive motivation is a process of attempting to influence other to do your will through the possibility of gain or reward”. According to Peter Drucker, “the real and positive motivators are responsible for placement, high standard of performance, information adequate for self control and the participation of the workers as a responsible citizen in the plant community. 2. Negative for Fear Motivation 3. Extrinsic Motivation like promotion, status, fringe benefits, retirements plans, health insurance schemes, holidays and vacation. 4. Intrinsic Motivation are praise, responsibility, reortanisazation, esteem, power, status, competition and participation are examples of such motivation. Steps in Motivation Jucius has observed and adopted the following steps in motivation: 1. Sizing up situation, requiring tools 2. Preparing a set of motivating tools 3. Selecting and applying an appropriate motivation 4. Following up the results of the application Management Technique Design to Increase Motivation Management generally use financial and non financial motivation techniques to motivate their employees. 1. Financial Motivaiton 2. Non – Financial Motivation like -

Appraisal, praise and prestige


Status and price




Delegation of Authority




Job Security


Job Rotation


Job Enlargement

94 -

Job Loading


Job Enrichment




Quality of work life

Guidelines for Motivating Employees and the Managers: Some of the suggestions for the guidance of motivating the people are listed below:  Management should treat the people with respect and honesty  To achieve to goal sub-ordinate should equipped with the proper instruction and guidelines  They should maintain the concrete feed back system  Management should avoid the dissatisfies into the job  Management should set fair, achievable goals and communicate to the employees  The people should know the feed back system  All such techniques like MBO, Job enrichment and morale maintenance, job analysis, must be implemented. The Position in India In the Indian context, it may be said that physiological needs are still dominant in many industries as in developed countries. As for safety needs these take the firm of job security, security against hazards of life and security have been designed to satisfy some of these needs. As for the higher social needs, they are not easy to satisfy. However, close relationships are built with at least some fellow workers. Ego needs are satisfied to a very limited extent; whereas self-realization or self-actualization takes place very seldom. The Changing Nature or Human Needs As Maslow pointed out, “Each need is not completely exclusive of other needs, but the individual’s concentrations of interests in seen as variable and changing.” As satisfaction in one area is obtained, interest moves to another focus. The effect of the progressive need fulfillment is to suggest that while all individuals are need-oriented and their needs have some common basis, not every individual feels the same needs at a given point of time. Study undertaken by the USA Deptt. Of Labour has brought out certain interesting observations, e.g., “Interesting work” was placed on the top. “Enough information to get the job done was second in importance. In composite figures, more than 50% of the employees were “while collar personnel. Fein has provided an analysis of the data, regarding differences in job expectations of the composite worker, and blue-collar workers than for white-collar employees. On the other hand,” interesting work” and “enough authority” appeared particularly to be of lesser importance to most blue-collar workers than was true of the composite workers. Hofstede, in an international study of employees in seven occupational levels in 16 countries, has concluded as follows:  The professions exhibited urgent needs for self-actualization and esteem (achievement and reputation).  Managers had self-actualization esteem and social needs.  Technicians had a mixture of self-actualization, esteem, social security and physiological needs.  Clerical workers were most concerned about social needs; and

95  Unskilled workers sought for security and physiological needs. Hofstede further said that, “It would be a mistake to conclude that ever employee’s needs and expectations are identical to those of other employees. differences appear by occupation, and it should be expected that differences occur within individuals.” On the basis of this study, a hierarchy seems to appear based upon the organizational level of the employee Perhaps certain needs are met as the individual rises up on the hierarchy, and other needs become more urgent. Need (Tension) achievement

Search for satisfying goals

Perception Alternative goal

Need (Tension) achievement


Search for satisfying goals

Perception of ways of satisfying

Attempts to attain goals

Attempts to attain goals

Perception of ways of satisfying



Goal achievements

Attempts to attain goals



Defensive behaviour

Fig. Unsatisfied Needs Lead to Defensive Behaviour Non-attainment of the goal, which would satisfy certain needs, is productive of many serious problems. When an individual satisfies his needs in a manner which is acceptable to society and which satisfies his “ego”, he is known as an adaptive or an adjusted person. He is said to posses a mature behaviour and personality. He is goaloriented and generally adopts and flexible, resourceful and problem-solving attitude for he satisfactions of his need. For this purpose, he tries different ways to relieve his tension. He may either intensify his efforts, or he may recognize his perception of the problem, or may adopt substituted goals. This type of behaviour is known as “Constructive behaviour” On the other hand, when one is incapable of satisfying, or fails to satisfy his particular needs, or satisfied them in a manner that is unacceptable to society, he is known as a maladjusted, ma/-adapted person or a social inadequate. Since his needs are not satisfied, he becomes disorganized, and adopts unproductive measures to show his frustration. This type of behaviour is called “defensive behaviour” He may, for example, want to get rich quickly by gambling or robbery, or he may satisfy his sex desire in illicit relations, and that of drinking by indulging in illicit distillation. It should that when a goal-directed behaviour is successful, it leads to a release of tensions and the satisfactions of needs when this is not so, a frustrated behaviour develops in the form of discouragement, discontentment, excessive complaining, bargging, lying, jealousy, frequent changes of jobs, excessive withdrawal from work, day-dreaming, wasteful and destructive behaviour, irritation, annoyance, vexation, etc. Frustration refers to the blocking or thwarting of goal attainment. According to Maslow, “it is a threatening deprivation,” which generally occurs when the drive for need satisfaction is thwarted. Men’s tolerance of frustration varies considerably. Some are very easily affected by frustration, other are less so. Consequently, under the same circumstances, one person may adopt a behaviour which is quite different from that of another. For example, when three individuals expect to get a pay raise on a particular day, an d if they do not get it because the weak financial position of the company. A may think of leaving the job and take up employment elsewhere; B may grumble, and show hostility towards the management; while C may be patient and continue to work in the hope that he will receive his raise when conditions are normal.

96 When people adopt non-rational ways of behaviour to face frustration, they are said to use their defence mechanism. This term has been used by psychologists because it serves to protect an individual’s feeling self-worth in the face of continue frustration. French has defined the defence mechanism as “a non-rational attempt to avoid the loss of some satisfier. Non-rational defensive behaviour is that of which the individual is either not aware or over which he has little or no control, in contrast to consciously decided upon courses of action chosen from alternatives.” In other words, ways of thinking and behaving in circumstances of frustration, which are not effective problem – solving approaches, are self-deceptive and serve to protect an individual’s self concept. These are referred to as defence mechanism. Lawshe and others have classified defence mechanism into four types: (1) Aggression; (2) Regression; (3) Fixation; and (4) Resignation Aggression is one way in which frustration can be shown. It is reaction in response to frustration involving some kind of attack direct out ward. It occurs when a person attempts to achieve something that he is not capable of achieving it is a positive step, it is neither flight from the scene of work nor a kind of internal withdrawal which, leads to apathy or anomie. It may normally be external. i.e. either towards the sources which caused frustration (as for example a bullying supervisor or an unsympathetic management) and this may not only take the form of individual action but also of concerted action by a group or organisation of workers. It may take the shape of demonstrations, strikes, even physical to inflict and injury on, or cause damage to, the barrier to goal attainment or something closely associated with it. This behaviour does not represent and effective problem-solving strategy. For example: (a) When a child is frustrated in a game, he may break toys, beat his companion, or abuse him and run away. (b) An unsatisfied worker may misuse or even damage a machine and become un-co-operative and antagonistic to his fellow-workers; or he may hit the boss; or he may undermine his own reputation by indulging in gossip and other malicious behaviour. (c) A foreman, who “gets mad” at an inspector for rejecting parts manufactured in his department, exhibits a direct aggressive responsive. (d) When reprimanded by his boss, an employee goes home, and quarrels with his wife who, in turn, punishes the child. (e) In labour-management relations, a worker may be dismissed or victimized by his employer for taking part in trade union activity. On the other hand, and employee may adopt go-slow tactics as a protest against a decision of the management. All these are instances of direct aggression Indirect or displaced aggression is directed against a scapegoat which (or which) has no direct relation to the reasons for frustration. “Scapegoating” is blaming a particular person for one’s own problems or sense of insecurity for various reasons, one may find it inadvisable or perhaps impossible to attack directly the real source of one’s discontent and so one picks up some innocent person or object against whom or against which to express one’s frustration. For example, an employee, who develops into an agitator on his job because of material problems at home, is said to have displaced his aggressive response from his home to his job. Brown gives some good examples of displaced aggression. He says:

97 “A worker may fear his boss because the boss holds his fate in his hands…The resentful worker may pick up a quarrel with his wife, kick the cat, beat the children or, more constructively, work off his feelings by chopping wood, by cursing and swearing or engaging in violent exercise or horse-play of an aggressive nature.” Aggressive behaviour is wasteful and destructive, and it often manifests itself in the from of hostility or rage and in a variety of other Ways. It is, therefore, essential that a person must be helped to attain his goal and satisfy his needs in some way or the other. It is interesting to note that in the USA, a few companies have in stalled a dummy resembling the boss in a special where a frustrated Worker may go and punch away at it in order to release his pent up feelings. Withdrawal can be a symptom of serious psychological disorder. It involves the individuals in withdrawing from the kind of problem-solving effort of which he is capable. The person avoids the situations which prove frustrating. The withdrawal may be physical (leaving the scene), but more likely it is internalized and manifested in apathy. Workers whose jobs provide little in the way of need satisfaction may withdraw in the form of excessive absences, latenesses, or turnover. Withdrawal may be of two types, viz., regression and emotional insulation. Regression is essentially not acting one’s age. Frustrated people tend to give up constructive attempts at solving their problems regress to primitive nd childish behaviour. The symptoms regressive behaviour are crying, pouting, horseplay, home-sickness, or emotional control. For example, a person who cannot start his care proceeds to kick it is demonstrating regressive behaviour. Similar when a manager is annoyed and frustrated by may throw a “transfer tantrum. Emotional insulation occurs when one does not expose on self emotionally, and tries to protect himself on an unrealistic self-concept. For example, the manager, who is always very correct in his dealings with others in the company but never extends himself personally and never extends in informal contacts or activities, may be engaging in a form of emotional insulation. Fixation is an attempt to gratify a need in a manner which has been proved fruitless; and therefore, the activity does not reduce tension. Brown ways; “Fixation can freeze old and habitual responses and prevent the use of new and more effectual ones” it is activity of persisting in the old way of doing things even when unsuccessful, and it may be the only recourse that people may know. According to Brown, the common symptoms of fixation in an industry are “the inability to accept change, the blind and stubborn refusal to accept new facts when experience as shown the old ones to be untenable, and the type of bhaviour exemplified by the manager who continues to increase penalties. Resignation or apathy may be defined as the “state of giving up or withdrawing from one’s involvement in a particular environmental station.” It occurs after prolonged frustration, when people lose hope of achieving their goals in a particular situation and, therefore, withdraw from reality and the source of frustration – leaving the entire matter in the hands of fate. Compromise involves altering one’s objectives either actually or symbolically. It consists of sublimation, rationalization and projection. Compromise involves altering one’s objectives either actually or symbolically. It consists of sublimation, rationalization and projection. In Sublimation, a substitute goal is adopted, generally one which is on a higher ethical plane and socially more acceptable. Social service activities by women may substitute for motherhood, taking care of children is something that is a socially desirable compromise activity. Rationalization refers to an attempt to give plausible (rational), but not necessarily true, explanations for specific, even undesirable, behaviour. In rationalization, one protects one’s “ego” by giving related but irrelevant reasons or excuses to “explain away” the failure or below-par performance. For example, a department head may not move to a larger, remodeled office

98 elsewhere on the ground that he needs “to be close to the boss for quick communication.” Although the real reason may be his fear of losing status and influence”. Thus, a person who attempts to justify a behaviour which, he feels, is undesirable is, consciously or unconsciously, indulging in rationalization. Rationalization may take two forms: the “sour-grape” and “sweet-lemon” forms. The sour-grape rationalization describes the tendency which impels one to conclude that h the failure in achieving the goal did not matter at all because the goal was really not worthwhile. For example, when a manager fails to achieve quality objectives, he may claim that are unrealistic and therefore unimportant. In other hand, the sweet-lemon rationalization represents an attempt at identifyi9ng something good about a situation in which the failure occurs. For example, when a manager fails to get some scheduled job completed, he may say that he would not have more time for its completion. Projection involves ascribing one’s behaviour to another individual. For example, an unfaithful husband accuses his wife of infidelity or an irritable person accuses another of being irritable; or when a jobs is not completed by an employee, he may blame the foreman for not supplying the raw materials in time. Some of the other types of defence mechanisms are: Attention-getting: This device is generally used when one wants to agin the recognition, appreciation or attention of one’s boss or group by putting a number of insignificant questions or by referring to minor problems. In this way, he tries to satisfy his attention need. Depression is the situation which develops when one has exhausted all one’s energies to gain need satisfaction. One becomes apathetic, chronically unhappy and often fatalistic. Sabotage, stealing or striking are other mechanisms which may be employed when some needs have not been satisfied, even though strenuous efforts have been made for their satisfaction. Obsessive thinking refers to a condition in which a person enlarges, out of all realistic proportions, specific problems or situations which he has experienced. For example, an individual employed in a dull, monotonous job requiring little in active thinking may continually mull Over personal or company problems. Though the problems are nto especially grave, his obsession with them may be carried to an extreme. If a job is redesigned, or if a person is allowed to talk it over with other employees, he chances of obsessive thinking might be lessened. Fight involves an actual leaving, or running away from, a particular situation which causes frustration or anxiety. Compensation is a situation in which an individual with feelings of inadequacy either real or imagined – exerts himself with extra effort in an attempt to overcome his insecure feelings. It may be positive, as when employees, who feel that their abilities are inferior to those of their coworkers, may work particularly hard in certain jobs in order to prove that they can do as well. A superior who has a disagreeable personality may overcompensate in any kind of attempts to practice good “human relations” with subordinated. Compensation is negative, as when persons become aggressive, pushy, overcritical and sometimes power-hungry because of their feelings of inadequacy. Repression is a mechanism that happens without one’s willing it. It is an almost automatic response whereby one loses awareness of certain incidents that would arousne anxiety in him if they were present in his consciousness. Thus an unpleasant situation with the superior may quickly “forgotten” by a subordinate. Conversion symbolizes a psychological process where by emotion frustrations are expressed in bodily symptoms of pain or malfunctions. For example, when an employee is unable to finish a scheduled task entrusted to him because to some, guests who are expected at home, he may develop a headache, which is his excuse for the non of ill task. He may develop some fear. Physical reactions to stress and conflict may develop psychosomatic reactions. The tensions that come anger or resentment can be internalized as a duodenal ulcer or hypertension, mucous colitis, asthma, pay fever, migraine

99 UNIT – VI Personnel Records/Reports – Personnel research and personnel audit – Objectives – Scope and importance. PERSONNEL RECORDS AND REPORTS Significance of Records and Reports A record is a piece of writing or a chart which provides ready information and which preserves evidence for future reference or use. The importance of records and reports for the management of an organisation cannot be over – emphasized, for they enable it to get information with a view to taking timely decisions on issues pertaining to the different aspects or personnel management. The are needed:” (i) To supply the information required by government agencies on the rate of accidents, on large-scale absenteesims or turnover, or on wage rates occurring or prevailing in an organisation; (ii) To conduct research in the field of industrial relations; (iii) To enable personnel manager to prepare training and development programmes; (iv) To review and revise pay scale; and (v) To keep and maintain up-to-date data on leave, transfers, promotions, dismissals, strikes or lockouts, man days lost, expenditure incurred on employees benefits and services cases of indiscipline, etc. In the absence of reliable records and reports, the management would not be able to function; in fact, it would be paralyzed, for it would not know where the organization’s weakness lies and what precautions to take to set matters right. Records By the term records is meant the preservation of information in files and documents. They are generally prepared and compiled from reports; and they are meant for long-term use. They contain, for the employer and the employee, information on job analysis, evaluation and description, and/or recruitment, selection, test scores; on the results of physical examinations; on the interviewers’ notations; on employee training and development and periodical appraisals; on transfers, promotions, discharge dismissals, lay-offs; on grievances and on the disciplinary action taken against employees; on wages, salaries, pensions, provident fund contributions, employee benefits-and-services programmes; safety and a prevention measures and procedures; labour disputes cost of the recruitment of employees and of training methods; scrap loss; the rate and extent of absenteeism and labor turnover; suggestion schemes and a host of other activities in which an organisation is involved. We give below a specimen on an employee record maintained by a well-known organisation in India. Essential of a Good Record To be reliable and effective a record should be clear about the following : 

The objectives for which it is maintained should be clearly and adequately stated.

It should be consistent with the requirements for which it is maintained and should be easily available.

Its upkeep and maintenance should not be costly. It should be kept under lock an key to ensure that it is not mislaid or pilfered, or tampered with.

It should be periodically reviewed and brought up to date.

It should be maintained in such a manner that the information it contains is easily accessible.

100 

It should be easily identified and differentiated from another record.

The records of different kinds of information should be kept and maintained in separate files and dockets for ready reference.

Duplication of entries in different records should be avoided.

Some particular person should be entrusted with the re of maintaining records

A procedural manual should be maintained, detailing the procedure to be followed for maintaining and dealing with records.

REPORTS A report is an account or statement describing in detail an event, a happening, a situation, or evaluating and enterprise or a product that is proposed to be manufactured. It outlines and describes what has happened frequently, both in qualitative and quantitative terms. It is generally written or submitted periodically-every week, month or year and includes many statistical series containing data on employment, recruitment, accidents, benefits and services, transfers, promotions, lay off, etc. It also contains the observations and comments of the person who is called upon to make a report on items of special significance in manpower management. Essentials of Good Report The submission of a report on a particular issue is the responsibility of the person appointed for the purpose, who puts it up to one of the top executives. It may also be sent by an immediate supervisor to his depart mental head. To be useful, a report should satisfy some conditions. These are: •

It should deal with a specific objectives

It should dwell on the issues referred to the person making it

The person who makes the report should collect the data and interpret it honestly

A report should contain data on all the aspects of personnel management.

It should make specific recommendations

It should be timely, so that proper action may be taken on it.

It should be clearly worded and easily comprehensible

It may include illustrative points to strengthen the observations made in it.

It should be reader oriented.

PERSONNEL AUDIT An audit is, properly speaking, an examination and verification of accounts and records. Personnel auditing refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of personnel management. In other words, personnel audit or periodical reviews of the effectiveness of a management o Personnel Records/Reports are concerned with: (a) The measurement of the effectiveness of personnel programmes and activities; and (b) The determination of what should or should not be done in the future as a result of such measurement. The effectiveness of a personnel programme, like that of personnel research, is dependent upon available information, and its scope is as wide as the field of personnel management. “The performance of people is a complex product of

101 personnel interest, qualifications, commitment and expectations on the one hand, and of the employment environment (including working assignments, working condition, supervisions, leader ship, opportunity and challenge) on the other. Because manager-employee relationships, from recruitment to retirement, are inter-related to compose the total system, no part of that system can be ignored.” Objectives of Personnel Audit The objectives of a personnel audit are: 1. To review the whole system of management programmes in which a management develops, allocates and supervises human resources in an organisation with a view to determining the effectiveness of these programmes. 2. To seek explanation and information; that is, to get answers to such questions as: “Why did it happen?” and “What happened?” 3. To evaluate the extent to which line managers have implemented the policies which have already been initiated; and 4. To evaluate the personnel staff and employees. According to Gray, “the primary purpose of personnel audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon; and to assist the rest of the organisation by identifying the gap between objectives and results, for the end-product of an evaluation should be to formulate plans for corrections or adjustments.” Importance of Personnel Audit In modern times, personnel and industrial relations audits have been widely accepted as tools with which managers can control the programmes and practices of the personnel and industrials relations departments. The importance of a personnel audit has increased in recent years because of the following reasons. 

A change in managerial philosophy and theory, as a result of which a management now feels that the employees’ participation in the activities of an organizations, and their identification with it, has a tremendous influence on the working of that organisation.

The changing role of the government, which intervenes more often and more extensively now, to control manpower management by an organisation with a view to protecting the interests of the employees, providing them with better working conditions and ensuring their economic security.

The increasing role played by trade unions and their strength, as a result of which they often question managerial competence in industrial relations.

The rising wages, changes in the skills of technical and professional workers, and the increasing expenditure incurred on the industrial relations department – these are the factors which have influenced and encouraged the trend in favour of a personnel audit.

Need for Personnel Audit According to Yoder, the need for personnel audit is largely influenced by several conditions, some of these are:

The Number of Employees: Very small units, because of the very small number of persons they employ, require comparatively little in the way of a formal audit.

Organizational Structure: Continuing feedback is facilitated if an organisation has a personnel department.


Communication and Feedback: An effective two-way communications system often reduces the need for a formal audit.

Location and Dispersion: The need for a formal audit is directly related, to the number of isolated plants.

Status of an industrial Relations Manager: If he participates in top management plans, reports, discussions and decisions, the need for a formal audit may be less frequently felt.

Administrative Style – the greater the delegation of authority and decentralization of power, the greater the value of a regular and formal audit.

Scope of Personnel Audit The scope of a personnel audit is very wide. It represents a “whole man” approach; that is, it assumes that the management of human resources involves much more than the practice of recruiting, hiring, retaining and firing employees. it examines the concept of “people management” by supervisor at all levels. In the words of the National Industries Conference Board of the United States, “the top management is interested in auditing all the programmes relating to employees; regard less of where they originate, or the channels through which they are administered.” The field of personnel audit includes:

Job analysis;





Management development;

Promotions and transfers;


Labour relations;

Morale development;

Employee benefit and services;

Employee communication

Employee counseling


Wage and salary administration

Collective Bargaining

Personal Management, Industrial Relations and research

Records to be Used The main records and statistics used in a personnel audit are: (a) Time standards (b) Cost records (c) Test scores; (d) Training scores (e) Interview records; (f) Work stoppages; (g) Medical reports; (h) Accident reports; (i) Grievance reports; (j) Turnover reports; (k) Unit labor costs; and (l) Payroll data. In other words, both quantitative and qualitative yardsticks should be used for purposes of evaluation. Monappa and Saiyadain provide a number of yardsticks and indices, which are: “average in the levels of employee turnover or absenteeism; cost figures for each major activity or function; accident frequencies; grievances; suggestions; internal data indicators – wage and salary surveys, employees’ state insurance scheme stabilities, productivity indications for certain jobs and/or machines, staffing and manning tables, job analysis and descriptions; and evaluation data regarding instruments.” Methods of Analysis The methods for analysis data and information are: 

Comparison of various time periods;

Comparisons between departments and other companies;

Trend lines, frequency distributions and statistical correlations;

Ratio analysis; for example, labour cost per unit of output;

Classification of data by kinds of employees, products and departments;

Graphical is pictorial displays,

104 Frequency and Types of Audit It is a common practice to have an annual evaluation or audit. At the end of each calendar or fiscal year, a report is presented, covering statistical information on the activities performed, the results achieved, the costs and expenditure involved, a d comparisons of objectives and accomplishments. By a perusal of this report a great deal of useful information can be had about personnel activities. In some organizations, however, this personnel audit is conducted periodically, generally in accordance with the needs of each organisatoin. For example, attitude or morale surveys on particular subjects or topics may be conducted, or special reports may be prepared on such issues as grievances, the working or seniority rules of the effects of overtime practices and collective bargaining agreements. Two practices are generally followed while conducting a personnel audit. In some cases, the audit is conducted by those employed in the organisatoin itself-generally by auditors or accounts. In other cases, the services of outside experts are engaged. The former is known as internal audit, while the latter is designated external audit. The advantages of having an outside auditor are that: (a) He has a background of knowledge of what other are doing in similar situations; (b) He has a professional attitude toward his work; and (c) He is objective in that he personally will not become a party to recommended changes. What appointing an outside auditor certain conditions should be kept in mind regarding his work; (i) He cannot work miracles. He can diagnose ills and recommended treatment, but the patient must provide the will to get well. (ii) He must receive top management’s support. (iii) He cannot and should not relieve management of its responsibility for making the decisions. He can recommended, but the acceptance of his recommendations rests with management. The Audit Report The report should invariably be submitted, within a reasonable time, after the audit work is over. It should avoid the journalistic style; be based solely on the findings; be presented in a factual manner that is readily available for future reference; make use of graphic techniques where appropriate; and not be any longer than is necessary. The following items should be contained in the report: 1. Table of Contents. 2. Summary and conclusion, in which the entire report is summarized for the top executives. 3. Preface giving a brief statement of the objectives 4. The report proper, in which a major dividsion is covered as a special section. Each section should be complete, and should contain as many supporting data as are practical without making it too voluminous. Other data should be included in the appendix. 5. Summary: this is more complete than summary and conclusions at the beginning of the Report. 6. Appendix. This includes supporting data that would be too voluminous to appear in the body of the Report. 7. It should be signed by all members making the audit.

105 Certain aspects of an audit report may be made available to the employees/Other phases of the audit may be appropriate to give only to top management. PERSONNEL RESEARCH Meaning and Characteristics According to Yoder, “research is a shortcut to knowledge and understanding which can replace the slower, more precarious road of trial and error in experience. “It implies,” he points out, “searching investigations, re-examinations, re-assessments and revaluations. It is a purposive and systematic investigation designed to test carefully considered hypotheses or thoughtfully framed questions.” Personnel research, according to Jucius, it is the task of searching for, and analyzing, facts to the end that personnel problems may be solved or principles and laws governing their solution derived.” •

In other words, research is purposive: that is, it seeks to answer specific questions and is not merely and accumulation of unstructured observations.

It is objectives; that is, it recognizes and limits bias and prejudice in every step of the process.

It is systematic; that is, it begins with a comprehensive design or plan, and the investigation is conducted in terms of that design.

It is parsimonious; that is, it identifies methods and techniques for the solution of problems with the minimum cost.

It is reputable; that is, it can be used independently by several researches at the same time.

‘Research’ is different from ‘causal observation’ in that is uses systematic investigation and objectives analysis instead of nay causal or informal means. The essential characteristic of research is its method or point of view. Its other characteristic are: (a) It is a planned and designed investigation and analysis (b) It is conducted in a systematic manner to check, verify or disprove clues, assumptions or hunches. (c) It supplements knowledge and extends the frontiers of under stnding. Type of Research On the basis of the emphasis laid on any analysis of information and data, research has been classified as basic or pure and applied. 

It is basic or pure when it is designed to bring about an understanding of a phenomenon for its own sake – for the sake of understanding alone. Such research is most likely to emphasis complex relationships and analysis.

Applied or operational research, on the other hand, stresses the need for a clear and practical explanation of a phenomenon, so that it can be made use of in ht every-day affairs of life. An analysis of data provides the basis for generalizations and conclusions. Applied research, moreover, includes what is widely described as Research & Development (or R & D), which involves efforts to prove or improve the usefulness and applicability or new products, processes and practices.

Analytical research is needed to provide the theoretical framework and background on which, or against which, total knowledge and operational practices can be based or judged. Such research is basically descriptive, that is, it reports on what was or is rather than on why.

106 Objectives of Personnel Research Research is a multipurpose tool which is used to help solve a variety of organizational problems. The concept of research can be applied to all organizational studies, be they large or small, descriptive or analytical, major or minor, human or non-human, broad or narrow in perspective, dimension and scope.” In fact, it is useful for everyone who is concerned with personnel problems – labour, management, the general public, government agencies and consumers. Research is immensely valuable in developing more effective personnel practices. Surveys and analysis of the statistics of a company’s in functioning, for example, are so vital to the effective operation of an enterprise that they are conducted almost as a mater of course. Research, moreover, provides the most efficient relationships which otherwise might never have been observed or verified, or which sometimes are discovered after decades. More specifically, research is related to the following aspects of personnel management, human relations and labour management relations: 

To measure and evaluate present conditions;

To predict future conditions, events and behavioral patterns;

To evaluate the effects and results of current policies, programmes and practices;

To provide an objective basis for a revision of current policies, programmes and practices;

To appraise proposed policies, programmes and activities;

To keep the management abreast of its competitors by replacing old products by new products, old techniques by new techniques and old organizational practices by new organizational practices.

To discover ways and means of strengthening the abilities and attitudes of at a good or a high level and on a continuing basis.

It is obvious then that the need for personnel research stems fro the requirements of finding the most efficient manner of handling people – related employment concerns Personnel research is the means of bringing about the end stage of improved performances its fundamental purpose is to improve the philosophy and practice of personnel administration and manpower management. Coverage of Personnel Research Area Research in manpower and human resources covers all those specific areas which are the subject matter of personnel administrations. The scope of such research may very from the very simply to the very complex, or form the short and inexpensive to the long and costly. Most studies reveal that the four most dominant areas of research are selection; training and development; attitudes and leadership; and measurement devices. The personnel researcher seeks to discover the basic relationships which may lead to improved personnel decisionmaking in such areas as turnover, absenteeism, compensation levels and structure, job satisfaction, employee morale, assessment of managerial potential, training effectiveness, grievance handling, labour relations and collective bargaining. Personnel research areas are often identified in terms of high or low appearance: selection, opinion measurements, training and development, appraisal, motivation, organizational effectiveness, managerial obsolescence, counselling and retirement. Managerial selection and development and general employee motivation have generally been identified as the two main human resources areas which are in the greatest need of additional research.

Methods and Tool of Personnel Research

107 Various methods and tools may be used in the conduct of personnel research. Of the various alternatives available, a choice has to be made of research designs. The general practice is to choose the technique which promises to yield quality with the least difficulty, effort and cost. Usually the techniques/methods or tools, which are available for research, are: 1. Historical studies; 2. Case studies; 3. Survey research; 4. Statistical studies 5. Mathematical models; 6. Simulation; and 7. Field or action research. (1) Historical studies: Past records and documents are systematically investigated, and interviews are conducted with former employees. Almost all big organizations maintain records of the various personnel problems – absenteeism, turnover, accident rates, wage structure, etc. The essential feature of this method is “its systematic investigation, utilizing an extended time span of longitudinal dimension” (2) Case Studies: These consist of analytically investigating the relationships which are significant in a particular situation or set of circumstances. Although the precise meaning of the findings of a case study is limited to its unique past situation, a careful analysis and thoughtful generalization may be derived from it, which endows it with a broader significance and application. Individual case studies may lead to the formulation of general hypotheses which would be useful in laying a foundation for additional or more intensive future research. The main merit of this method is that it enables the researcher to make a thorough, in-depth investigation of key incidents or situations, while its demerits is that it is historical in nature and does not necessarily represent general conditions. (3) Survey Research: In a survey research, attention is concentrated on the collection of original data by administering a questionnaire or conducting a structured interview. Certain research hypotheses are established, and survey questions are designed to collect data. The correlation among observed phenomena, possible causes and related efforts is then computed, and conclusions are drawn. This method is timeconsuming and costly, and has been criticized on the ground that its application may emphasize the importance of the collection of data and not the importance of analyzing these data and formulating a theory on their basis. (4) Statistical Studies: These studies deal with the collection, analysis, classification and interpretation of mathematical data and quantitative information. They lay emphasis on the importance of quantification, mathematical manipulation, and statistical inference. They may use averages, means, medians, modes, measures of dispersion, trends, regressions and correlations. Their use is becoming increasingly widespread because of the development of high-speed modern electronic data-processing equipment. (5) Mathematical Models: Mathematical models are generally used in research to explain the relationships among the variables that are to be examined. They help us to develop and test the designs and sequences of equations which tentatively describe the behaviour of interacting variables in terms of mathematical notations. These mathematical models also help us to examine comparatively simple and extremely complex relation – ships and evolve decision-rules of wide applicability. (6) Simulation: Computers have popularized design which involve simulation. The process begins with the statement of a hypothesis. It is used to study problems of production and inventory control, of marketing, purchasing, hiring and training of personnel, and of collective bargaining.

108 (7) Field or Action Research: This method has been most effectively used in understanding group behaviour in communities and working – organizations. It involves difficult design problems, for-the observer himself becomes a variable in the process of observation. This self-involvement on the researcher gives him new insights; and these are gained from an active interaction which would not have been possible under passive observation. The personnel researchers, who utilize these methods or tools, are (a) Academic bodies – universities, bureaus of business research, social research institutions or centres; (b) Government agencies – departments of labour and employment (c) Private consultants, individuals or sophisticated research organizations; (d) Personnel departments of commercial and industrial under takings; and (e) Time departments, either independently or in conjunction with personnel departments. Research Procedure A researcher has to follow a certain research procedure: 

Defining the problem

Designing the Objectives

Collection of Data’s

Formulation of Data’s

Classifies, analyses and interprets the information

Draws conclusion

Sources of Personnel Research Information The result of research projects, plans, finding and experiences are generally reported in a number of publications brought out by an organisatoin, and in a number of other journals, technical or business magazines they are also covered in seminar reports, conference proceedings and monographs. Yoder classifies these into three categories: (a) Those professing a, major interest in the field of personnel and labour relations; (b) Those having a specialized focus on one or more of these; and (c) Journals covering wider interests, which include reports on research in the manpower management area. Responsibility for Research Research is not the sole responsibility of any one particular group or departments in an organisation. The initial responsibility is that of the personnel department which, however, should be assisted by line super visors and executives at all level of management. The assistance that can be rendered by trade unions and other organisatoins – for example, educational institutions, private research groups, and governmental agencies – should not be ignored, but should be properly made use of. Psychologists, sociologists, economists, mathematicians, and specialists in business administration, political science and other areas should also be laid under contribution in so far as research is concerned. We close this discussion with an observation of Jucius. He says: “The field of research requires the resources of several types of researches and different kinds of tools. To seek answers through the methodology and principles of a single specialty is to build upon a weak foundation. Rather, research calls for a cosmopolitan attitude and inter-

109 disciplinary cooperation. The specialists who try to build a fence around all aspects of research do themselves and industry a serious disfavor.”

110 MODEL QUESTION PAPER PAPER 2.3: HUMAN RESOURCE MANAGEMENT Time : 3 Hours 1. 2. 3. 4. 5. 6. 7. 8.

9. 10. 11. 12. 13. 14. 15.

Maximum Marks: 100 PART – A ( 5 x 8 = 40) Answer any Five questions Define HRM, and list out the objectives of HRM Discuss the characteristics and the process of HRP. Explain Job analysis and Job Description and highlight the importance of these elements in HRM Detail about the selection process in Recruitment? Detail about the need and importance of Training and development in organisation. Explain the wages and salary administrations methods and policies practices in India. Define Job Evaluation? Brief about the necessity of job evaluation systems. Accident prevention methods and practice – Discuss PART – B (4 x 15 = 60) Answer any Four questions Question No. 15 is compulsory NRM improves the Life cycle of employees – comment. Brief about the role and importance of a. Job design b. Job specification Training and development is a unavoidable expenses in the organisation Agree(or) Disagree. Brief discuss about the wage and salary administration practices in India. Explain the employees welfare and safety provision in according to the industrial practice. How to Personnel Research and Personnel Audit helps the Personnel Manager to improve the organizational effectiveness? Analysis the following case and answer the questions CASE

THOMSON Consumer Electronics, the state – owned French group, last year rationalized its European operations by closing its Ferguson television plant in Gosport, southern England, with the loss of more than 3,000 jobs, The event scarcely merited a mention at the time on either side of the channel. But some British trade unionists are now recalling it, as the acrimonious dispute over the transfer of work from However’ plant in eastern France to Scotland rumbles on. This part of cross-channel sniping reflects how completely relations between British and French unions have broken down. But it also illustrates the difficulty facing unions in dealing with the ebb and flow of jobs across the European Community as a wage of recession induced restructuring begins. Following the British out-put from the Maastricht Social chapter, and the subsequent devaluation of sterling, many continental European works and politicians fear that capital will be sucked in the “Hong Kong of Europe” at their expense. The propaganda material of Britain’s inward invested agencies certainly stresses the relative freedom of Britain’s ‘hire and fire’ workplace culture and the relatively low labor costs. But the reality is that neither the opt-out nor the devaluation were factors in Hoover’s decision to shift jobs to Scotland.

111 Britain has always had a relatively unregulated labour market which used to be qualified by strong trade unions, now considerably weakened. British wages are also low by EC standards, but the real advantages enjoyed by the UK is low non-wage labor costs. These are usually about 15 percent of wage costs compared with more than 50 percent in many other EC countries. That is partly because the UK pays for health care though general taxation while employees have to bear a large part of health care costs in several continental countries. This clearly was just one factor in Hoover’s decision but it is not something that the social chapter directly affects. Mr. William Foust, president of Hoover Europe, said yesterday that non-wage labour cost of only 10 percent in Scotland, compared with 45 percent in France, was factor in the company’s decision. But the decision was also influenced by fact that the Soottish plant had spare capacity. Hoover’s decision is unlikely to herald any significant increase in Britain’s comparative advantage. It is based on long-established factors which Hoover, a particularly foot-loose US investor in Europe, has often found attractive in the past. Britain has always been the most population destination for new international investment within the EC and that has not changed markedly in recent years. Until German care workers started to worry about the Japanese care industry investing in Britain, new international investment has not been the source of such tension, and is unlikely to be much of an issue over coming years as that new investment will not be plentiful. On “beggar-my-neighbor” industrial restructuring within the EC, where one country loses jobs and another gains them, things, are more complex. But as the Thomson Electronics case illustrates, Britain has often lost out in such restructuring precisely because it is easier and cheaper to close plants in Britain than in most EC countries. In the Thomson case at Gosport the average redundancy payment was £ 7,000 compared with £ 47,000 in Spain. In Holland, Spain an Germany agreement on a redundancy package has to be reached with workplace representative before closure is allowed. If, for example, British Leyland Daf decides to keep open its Belgain and Dutch plants and close only its British plant, as seemed possible yesterday, that differential cost of redundancy is likely to be a factor. Britain also loses out form its relatively low skill base and poor educational standards, one reason behind Ford’s decision to switch more of its R & D work to Germany. The “social dumpling” theory that capital will flow to areas where labour is cheapest and least protected, dragging down labour standards elsewhere, has scarcely materialized in the EC because low wages are usually canceled out by low productivity. 1. Analyse the Hoover decisions form a competitive labour market perspective and a radical perspective. 2. To what extent is the Hoover decision a vindication of British government policies to deregulate the labour market? 3. What do you consider to be the implications of the Hoover case for the practice of HRM?


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