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INTRODUCTIONINTRODUCTION
Human Resources are one of the most vital assets of an
organization. It is the people who make other resources moving;they perform various activities in different financial areas like
production, marketing, finance etc. The significance of human
resources in a modern organization can be seen in the context
of activation of non human resources means for developing
competition advantages and source of creative energy. HRM
handle all physical and financial resources in an organization.
The quality of human resource is a critical factor in the
success of any organization, and more so in service organization
like banking and insurance. In super competitive world, the thing
that is most unique to every financial institution is the capability
of its people .It is the organizations employees-its human
resources-that give a bank or insurance firm its competitive edge.
WHAT IS HUMAN RESOURCE MANAGEMENT?WHAT IS HUMAN RESOURCE MANAGEMENT?
Wendell French describes human resource management as the
philosophy, policies, procedures, and practices related to the
management of people within the organization.
In the words of Robbins Human resource management isconcerned with the people dimensions in management. It is a
process consisting of the acquisition, development, motivation,
and maintenance of human resources.
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Human resources management is about managing people. It is a
process of binding of people and organizations together so that
the objectives of each are achieved.
Human resource management is based on four
fundamental principles:
1. Human resources are the most important assets an
organization has and their effective management is the
key to its success.
2. Organizational success is most likely to be achieved if
the personnel policies and procedures are closely linked
to corporate objectives and strategic plans.
3. Organizational culture, values and climate significantly
influence managerial behavior and exert a major influence
on the achievement of excellence. Hence, continuous
effort starting from the top is required for themanagement and acceptance of the culture.
4. Human resource management is concerned with
integration getting all members of the organization
involved and working together with a sense of common
purpose.
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IMPORTANCE OF HUMAN RESOURCEIMPORTANCE OF HUMAN RESOURCE
MANAGEMENTMANAGEMENT
Human resources are the most precious possessions of any
organization. It is, therefore, necessary to take utmost care for
their survival and growth. Human resource management is the
management of this most important resource. Liberalization and
globalization has increased the importance of human resource
management by manifold.
Effective human resource management is vital for its impact is
felt from the individual level to the national level. The
significance of human resource management is at four levels:
1. Organizational significance: Human resource management
plays an important role in helping the organization attain
its goals. It helps in this direction through effective human
resource planning, recruitment and selection of talented
employees, training and development of employees,developing sound performance appraisal and compensation
systems, career planning and so on.
2. Professional significance: Effective management of human
resource contributes towards the personal growth and
development of every employee. It helps to improve the
quality of work life by providing a healthy working
environment.
3. Social significance: Human resource management is of
great importance to the society. Sound management of
human resources helps in satisfying the social and
psychological needs of employees
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Through suitable employment. It avoids wastage of human
resources and helps in the conservation of physical and
mental health.
4. National significance: The true wealth of nation is not its
natural resources but its people. Human resources and
their management play a vital role in the development of a
nation. The development of a country depends on the skills,
attitudes and values of its human resources. Effective
management of human resources helps to speed up the
process of economic growth, which in turn leads to higher
standards of living and fuller employment.
OBJECTIVES OF HUMAN RESOURCEOBJECTIVES OF HUMAN RESOURCE
MANAGEMENTMANAGEMENT
Every organization has some objectives. In order to attain
organizational objectives, it is necessary to integrate the
interests of the employees with that of the employer. Hence theobjectives of human resource management are derived from the
basic objectives of the organization.
Integration of goals: HRM seeks to integrate all the
individuals and groups within the organization by reconciling
individual/group goals with those of the organization.
Cost containment: In todays competitive business
environment, keeping expenses down or cost containment, is
a critical HRM goal.
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Goals through able employees: HRM seeks to help the
organization attain its goals by providing it with competent
and dedicated employees.
Optimization of human resources: By employing the
knowledge and skills of employees efficiently and
effectively, HRM seeks to optimally utilize the human
resources of the organization.
Growth and development of employees: HRM seeks to
ensure the growth and development of the employees by
providing opportunities for training and advancement.
Self-actualization: HRM aims to increase employees job
satisfaction and set them on the path of self-actualization
by providing them with opportunities to utilize their
potential to the fullest.
Satisfy needs: By providing adequate compensation, HRM
seeks to ensure that the basic needs of the employees aresatisfied and they are able to live a dignified life.
Motivation: An important goal of HRM is to motivate the
human resources through adequate monetary and non-
monetary incentives so as to stimulate better performance,
which in turn will enable the organization to accomplish its
objectives. It also helps to retain talented employees and
reduce employees turnover.
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*SCOPE OF HUMAN RESOURCE MANAGEMENT
The scope of human resource management is very vast. It is
connected with all major activities in the working life of a worker.HRM is connected with every other department, as human
resources are the requirement of all departments in the
organization.
HRM covers the following areas:
Human resource planning
Job analysis and design
Recruitment and selection and induction
Training and development
Performance appraisal
Transfers and promotion
*HUMAN RESOURCE MANAGEMENT*HUMAN RESOURCE MANAGEMENT
FUNCTIONSFUNCTIONS
Human resource management involves a large number offunctions. This number varies according to the size and needs of
the organization. The functions of HRM affect the organization
internally. However the external environment affects HRM
functions. The major functions of human resource management
are:
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Human resource planning: Human resource planning is
the process of assessing the organizations human
resources needs in the light of organizational goals and
changing conditions and making plans to ensure that a
competent, motivated work force is employed.
Human resource planning is very important in these
modern times where everything is fluid and changes are
occurring at great speed.
Organizational and job designing: An important
activity of HRM is developing an organization which
caters for all the activities required, groups, themtogether in a way which encourages integration,
cooperation, and provides for effective communication
and design making.
Job design is concerned with deciding on the content
and accountabilities of jobs in order to motivate employees
and maximize job satisfaction.
Staffing: staffing or acquisition of human resource isanother activity of human resource management.
Staffing activities determine the composition of an
organizations human resources.
Staffing activities include: attracting qualified people
to the organization, selecting from among candidates,
reassigning employees through transfer, promotion or
demotion and ultimately managing the employeeseparation through resignation, discharge or
retirement.
Training and development: This activity of HRM
focuses on improving the performance of individuals
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and groups within the organization. These activities
aim to help employees learn new skills or refine
existing skills.
Human resource managers must decide which skills or
knowledge areas need development and which methods are
most effective for helping employees acquire skills and
knowledge.
Performance appraisal and review: Performance
appraisal and review is an ongoing evaluation of
individual and group contributions to the organization
and the communications of those evaluations to thepersons involved.
This HRM functions is carried out for a number of
purposes:
To provide feedback about performance, to determine the
need for training, to make decisions about promotions, pay
increases and so on.
Compensation and reward: Organization compensatesemployees through wages and salaries, bonuses and
benefits, such as health insurance, vacation time, and
pension programs. The presence or absence of rewards
and recognition is important to employee morale and
performance.
Compensation decisions include determining: ensuring
fair and equitable pay differences among employees,
designing a pay packages relative to that of its competitors,forms of compensation and so on.
Health and safety management: This function of
HRM includes activities and events that serve to
protect organization members from illness and
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physical dangers in the workplace and to assist them
with their physical and emotional health.
For many organizations, protecting the health
and safety of human resources is a prime social
responsibility. This HRM functions serves to preserve the
human resources of the organization.
Employee participation: This is a relatively new
function of HRM. Employee participation focuses on
giving employees a voice, sharing information with
them and consulting them on matters of mutual
interest.Employee participation is an important step in
establishing industrial democracy.
* Definition of Personal Management :
* Difference between PM & HRMPM HRM
1. Personnel means personsemployed. Personnelmanagement is themanagement of peopleemployed
1.HRM is the management ofemployees skills , Knowledge,abilities, talents, aptitudes,creative abilities.
2. Employee in personnelmanagement is mostly treatedas an economic man as hisservices are exchanged forwage/ salary
1. Employee in human resourcemanagement is treated notonly as economic man but alsoas social & psychological man.
Thus, the complete man is
viewed under this approach.
3. Employee is viewed ascommodity or tool orequipment which can bepurchased & used
2. Employee is treated as aresource
4. Employees are treated as cost 3. Employees are treated as a
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centre & thereforemanagement controls the costof labor
profit centre & thereforeinvests capital for humanresource training &development
5. Employees are used mostly fororganizational benefit
4. Employees are used for themultiple mutual benefit of theorganization , employees andtheir family members
6. Personnel function is treatedas only an auxiliary
5. Human resource managementis a strategic managementfunction.
* Challenges before HR Manager
1. Work life balance- As HR personnel has a dual responsibility he hasto get the work done by the employees to attain the goal of theorganization & at the same time he has to handle the grievances ofemployees , employees should not be overloaded with task & goals
2. Employee Expectations With the changes in the workforcedemographics , globalization , liberalization change in the attitudeof employees has been observed their expectations have changedthey ask for empowerment & expect fair treatment by themanagement.
3. Ethical HR Practices- HR managers role in building an ethicalclimate is significant because they are the one who actually framethe culture of the organization they should follow ethical practicesfrom recruitment to appraisal till the full & final settlement. It hasbeen observed that they themselves at times carry on withunethical practices like taking discounts from consultancies,caterers transport operators etc.
4. Talent Retention One of the most challenging problem for HRManagers is to retain the talents because of intense competitionfrom global companies domestic companies are in trouble becausemost of the Indian Companies at present are not offering the perks& benefits what an MNCs offer, so they find it difficult to retain thetalent
5. Managing different work force - For HR manager this is veryimportant that they keep the environment of the organization freeof conflicts & when there are thousands of people working togethermany conflicts crops up so policy of the Companies should be
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secular & should not show any biasness all this things has to beconsidered and implemented by the HR manager
Role of HR Manager notes in class
Characteristics of the workforce notes in class
Personnel Philosophy notes in class
Personnel Manual-notes in class
HR as a supporting system Most of the organization doesnt
consider HR to be a part of decision making team they are just
considered to be a supporting pillar whereas in reality they are
the one who actually represent the entire organization & if theirviews are not included in the policies of the Company it may
affect the climate of the organization.
STRUCTURE OF HUMAN RESOURCESSTRUCTURE OF HUMAN RESOURCES
DEPARTMENTDEPARTMENT
A human recourse department is becoming an integral part
of every organization.
The following diagram illustrates the common structure of the
human resources department:
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HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING
Human Resource Planning is based on the belief that people
are an organizations most important strategic resource. It
attempts to address
The human resource needs of an organization both in quantitative
and qualitative terms. Human Resource planning is also concerned
with how people are employed and develops in order to improve
organizational effectiveness.
DEFINITIONDEFINITION
PRESIDENT/DIRECTOR (Human
Resources)
Manager Manager Manager Manager Manager
Recruitm
ent
&
Selection
Training &
Developme
nt
Compensati
on
& Benefits
Employe
e
Welfare
Employe
e
Relation
s
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Wendell French defines human resource planning as the process
of assessing the organizations human resources needs in the light
of organizational goals and changing conditions and making plans
to ensure that a competent, stable work force is employed.
OBJECTIVES OF HUMAN RESOURCESOBJECTIVES OF HUMAN RESOURCES
PLANNINGPLANNINGThe specific objectives of human resources planning may
vary as per the specific needs of the organization. However, most
human resource plans have the following objectives:
Optimal utilization of human resources: The mainobjective of human resource planning is to maintain and
improve the organizations ability to achieve its goal by
developing strategies that will result in optimum
contribution of human resources.
Meeting personnel requirements: Human resource planning
is not concerned with merely forecasting future manpower
requirements of the organization but also with developingappropriate recruitment and selection strategies to meet
these requirements. Human resource planning seeks to
recruit and select employees in a manner that will maximize
return on the investment in human resources.
Placement of personnel: It is not sufficient the right
personnel; but it is important to place them on the right job.
Human resources planning strive to place the right man on
the right job.
Prevent disruption of work: The costs of work disruption
due to unavailability of required human resources can be
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very high. Human resource planning aims to ensure the
timely availability of the right number and kind of people
for the smooth running of the organization.
Control costs: An important objective of human resource
planning is to reduce or control labor costs by maintaining a
proper balance between demand for and supply of human
resources. Human resource planning seeks to cut and save
costs on human resources.
Training and management development: Human resource
planning aims at developing a well-trained and flexibilityworkforce. This increases the organizations ability to an
uncertain and changing environment.
*Process of Human Resource Planning
It consist of the following steps1. Analysing organizational plans
2. Demand forecasting: forecasting the overall human resourcerequirements in accordance with the organizational plans
3. Supply forecasting : obtaining the data & information about thepresent inventory of human resources and forecast the future changesin the human resource inventory
4. Estimating the net human resource requirements
5. In case of future surplus , plan for redeployment , retrenchment & layoff
6. In case of future deficit, forecast the future supply of human resourcesfrom all sources with reference to plans of other Companies.
7. Plan for recruitment, development & internal mobility if future supply ismore than or equal to net human resource requirements.
8. Plan to modify or adjust the organizational plan if future supply will beinadequate with reference to future requirements-( ref diagram)
TRANSFERSTRANSFERS
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Reshuffle of human resources is essential for the smooth
and efficient management of the organization. It also serves the
broader interests of the organization. Hence such reshuffles
popularly known as job transfers hence become very common in
modern business organizations.
Job transfers carried out on a routine basis in organization.
They are designed to prepare managers to take on the additional
responsibilities by providing them with experience in different
areas of the firm. Most of the job transfers are considered to be
lateral promotions; that is the manager is placed in a position that
carries similar authority and responsibility but in a different partof the firm.
DEFINITIONDEFINITION
Yorder and associates have defined job transfer as a lateral
shift causing movement of individuals from one position to
another usually without involving any marked change in duties,responsibilities, skills needed or compensation.
Transfers may be initiated either by the company or the
employee. A company may initiate transfer to place employees in
positions where they are likely to be more effective. Similarly,
employees may initiate transfer to locations where they are likely
to get greater satisfaction.
TRANSFER POLICYTRANSFER POLICY
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Every organization should have a just and impartial policy
concerning the transfers of employees. It is important that every
employee knows the policy. A transfer policy serves as a guide
post for managers in affecting transfer policy.
A good transfer policy should satisfy the following conditions:
It should states the types of transfers (departmental or
interdepartmental) and the circumstances under which
transfers will be made.
The persons who have the authority to order transfers.
Usually the person in charge of that department handles
transfers in each department. The HR department usually,
has a big say in transfers.
The effect of transfer on pay and seniority should be
clearly mentioned.
The facilities (leave, special, allowance for shifting place)
available to transferred employee should be clearly stated.
The transfer policy should state the conditions under which
personal requests of the employees for transfer will be
entertained.
All transfer decisions should be communicated to the
employee in writing.
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TYPES OF TRANSFERSTYPES OF TRANSFERS
Employee transfer may be classified in to three types based
on its purpose:
Transfers that are affected for the training and
development of the employees.
Transfers made for adjustment of varying volumes within
the organization.
Transfers designed to correct the problem of poor
employee placement.
The common types of transfers are:
Production transfers: When there is excess manpower in
one department or branch in the organization, they are
transferred to other departments or branches in order to
lay off. The main purpose of such transfer is to prevent lays
offs and stabilize employment.
Replacement transfers: these types of transfers are
applied for the protection of senior or long serving
employees. Such transfers are made when the operations of
the organization are declining and hence a long-standing
employee replaces a junior or new employee.
Versality transfer: Versality transfers are affected togive the employee a chance to learn various skills involved in
different jobs. The purpose of such transfers is to develop
and all round employee with varied experience. He is
prepared for future positions.
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Shift Transfers: Shift transfers are routine in industries
where work is in process for 24 hrs or in three shifts. Such
transfers are usually effected on rotation basis but they are also
effected for personal reasons of an employee such as marriage,
child - care, age parents etc.
Remedial Transfers: Remedial Transfers are affected to
correct the wrong placement of the employee or shift an
inefficient employee who ids not carrying out his job
satisfactorily. The wrongly placed employee is placed in a
more suitable job. Such transfers protect the interest ofthe employees.
Penal Transfers: The management may transfer an
employee from one position to another as punishment for
undesirable acts performed by him. In such transfers, the
employee is shifted to less important position in the
organization.
PROMOTIONSPROMOTIONS
Promotion refers to advancement of an employee to a higher
post carrying greater responsibilities, higher status and better
salary. Promotion puts an employee or executive on a career path,
which goes upward.
On being promoted, promoters duties and responsibilitiesincrease, and the higher ones goes in an organization the greater
is the effect of the employees decision on the working of the
organization.
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Promotion is upward movement of an employee in the
organizations hierarchy, to another job commanding greater
authority, higher status and better working conditions. Generally,
when an employee is assigned a higher-level job with more pay and
powers, he is said to be promoted.
DEFINITIONSDEFINITIONSAccording to Scott and Clothier, a promotion is a transfer of an
employee to a job which pays more money or one that carries
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some preferred status.
CHAIRMAN AND MANAGING DIRECTOR
EXECUTIVE DIRECTOR
SCALE VII: GENERAL MANAGER
SCALE VI: DEPUTY GENERAL MANAGER
SCALE V: ASSISTANT GENERAL MANAGER
SCALE IV: DIVISIONAL MANAGER
SCALE II: MANAGER
SPECIAL ASSISTANT
CLERK
SCALE I: OFFICER
SCALE III: SENIOR MANAGER
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BASES OF PROMOTIONBASES OF PROMOTION
Organizations adopt a variety of criteria for promoting employee.
Promotion can be made on the basis of seniority or merit or acombination of both
PROMOTION BASED ON SENIORITY
Seniority implies relative length of service in the
organization. Seniority is described as The principle that an
employees relative length of service is an organization is a factor
in determining his employment rights and job opportunities in theorganization.
Promotional systems that are based on seniority place a
premium on length of service and job experience. I.e. those
employees who joined the organization first should be the first
choice for promotions. Seniority suggests that employees should
be given preference in various aspects of employment based on
the length of their service.
The use of seniority as the basis of promotion is based onthe assumption that the longer a person does a job, the more he
learn from it. This experience gives him greater knowledge of the
organization and jobs related to his own, hence he is more
suitable for promotion.
PROMOTION BASED ON MERIT
This system of promotion takes in to account theknowledge, skills and performance of an employee it stresses on
the ability of the employee in deciding promotion. Under this
system the best performing employee is promoted.
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PROMOTION BASED ON SENIORITY-CUM-MERIT
As both seniority and merit-based systems of promotion
have plus and minus points, may organization use a promotional
system based on a combination of seniority and merit.
Before using this system, it is essential that the management
clearly state the following details:
1. The minimum length of service to be eligible for promotion.
2. The relative weight age assigned to merit and seniority.
3. The minimum performance and qualifications essential to beeligible for promotion.
PROMOTIONAL POLICIESPROMOTIONAL POLICIES
Every organization should develop a sound policy regarding
promotion of its employees. The promotion policy should formally
state the organizations broad objectives. Employees are likely to
be frustrated and restless in the absence of sound promotionpolicy.
The main characteristics of a good promotion policy are as
follows:
Policy statement: The sound promotion policy has a policy
statement. It is statement of the ratio of internal
promotions to external recruitment at each level, the
method and procedure of selection, and qualifications
desired.
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The policy statement must clearly state whether
vacancies are to be filled up primarily from within the
organization or by recruitment from outside.
Basis of promotion: The basis of promotion must be clearly
specified. The weight age to seniority and merit must be
clearly stated. Ideally, an organization should try to strike a
balance between seniority, merit and future potential of the
employee.
Promotion charts: A promotion charts conveys to the
employees the avenues of advancement available to them. Ina promotion chart each position is linked to several other
positions can be made.
Communication of policy: The organization should
communicate its promotion policy in writing to the
employees and the unions. If the organization is secretive
about its promotion policies, employees will become
suspicious of the managements intentions.
Career planning: The promotion policy should be in line with
employee career planning. This will avoid sudden spurt
promotion followed by drought (long periods when there are
no opportunities for promotion.)
Detailed records: A sound promotion policy ensures that
detailed records of employee service and performance are
maintained.
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Employee training: The organization must prepare the
employees for promotion through suitable training on the
job or in professional institutions or through job rotation
and conferences.
Consistency: The organization must be consistent in its
promotion policies. It should be applied uniformly regardless
of the person concerned.
Diagram
Demand & Supply forecasting techniquesFactors affecting HRP-notes in class
HRIS-notes in class
VRS-notes in class
Outsourcing-notes in class
Pinkslip/retrenchment /downsizing/separation-notes in class
Contracting & subcontracting- notes in class
B. JOB ANALYSISB. JOB ANALYSIS
The success of any organization depends on the right man
on the right job. Matching the man to the job and the job to the
man is the key to the efficient running of an organization. The
purpose of job analysis is to provide a detailed information and
description about the job.
Job analysis provides information about why job the job is
done, the way it is done, the equipment or machinery used, the
skill or training or education needed to perform the job, the
wages paid, the working conditions and any other special or unique
characteristics of the job.
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2.3 DEFINITION2.3 DEFINITIONWendell French defines job analysis as the systematic
investigation of job content, the physical circumstances in which
the job is carried out, and the qualifications needed to carry outjob responsibilities.
Methods of collecting job data
Merits & Demerits of Job Analysis
2.4 JOB DISCRIPTION AND JOB2.4 JOB DISCRIPTION AND JOB
SPECIFICATIONSPECIFICATION
Job description and job specification are the two major outcomes
of the job analysis process.
JOB DISCRIPTION
Job description is sometimes called as position description.
Job description is a recorded statement of the activities of thejobholder. It describes what is done on the job, how it is done
and why it is done. Job description attempts to accurately
portray job content, environment and conditions of employment.
It describes every aspect of the job. It is extremely useful in
differentiating one job from another. The job description
document usually contains the following information:
Job identification: Information regarding the job title,code number of the job, department or division where the
job is located and so on is provided over here.
Job summary: It describes the activities or tasks
performed on the job.
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Job duties and responsibilities: This is the heart of the
job description. It describes the duties performed and the
frequency of each duty. Responsibilities such as supervision,
custody of money, supervision and training of staff are
described in this part.
Working conditions: This includes the physical environment
of the job, risks in the workplace and possibilities of their
occurrence and so on.
Machines, tools and equipment: The name and types of themajor machines and tools used on the job are described
here.
Social environment: This part describes the size of the
work group, interpersonal interactions required to perform
the job.
Supervision: It states the extent of supervision given orreceived, the number of people supervised along with their
designation.
Relation to other jobs: In this part the jobs immediately
below and above are mentioned. This provides an idea of the
relationship between different aspects of the work.
Job description acts as an important resource for:
1. Describing the job to potential candidates
2. Guiding new employees in what they are specifically
expected to do and
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3. Comparing the employees actual activities with the
ones stated in the job description.
Job description is an important document that helps to identify
the job and gives a clear idea of what the job is. A good job
description provides a detailed and clear picture of the whole job.
JOB SPECIFICATION
Job specification is also referred to as man specification or
employee specification. Job specification is a statement of the
minimum qualities required in a candidate for successful
performance of the job. It describes the personalcharacteristics that an individual must process in order to
perform the job effectively.
Based on the information acquired through job analysis, job
specification identifies the knowledge, skills, and abilities needed
to do the job effectively. Although the specific items mentioned
in the job specification may vary, they usually include following
specifications:
1. Qualifications and experience2. Physical characteristics (height, weight, physique, eyesight,
motor coordination)
3. Psychological characteristics (intelligence, analytical ability,
concentration, memory, judgment, interests)
4. Social characteristics (emotional intelligence, interpersonal
skills, leadership, cooperativeness)
5. Other characteristics (age, sex, family background)
Job specification tells what kind of person is required for a
given job. It is an important tool in the recruitment and selection
process as it helps the selectors to determine whether a
candidate has the personal characteristics required to succeed on
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the job. Job specification tells what kind of a person to recruit
and for what qualities that person should be tested.
JOB EVALUATIONJOB EVALUATION
It is the vital that organizations pay their employees fair
and competitive salaries in order to attract and retain their
talented and competent employees. If the salary is poor then the
employee will leave the organization for another that will pay
more. However paying more than what an employee deserves will
prove costly and counterproductive.Job evaluation means to determine the relative worth of
jobs in an organization. It is the process of determining the value
of a job in order to fix some salary or wages. Job evaluation is
done on the basis of information obtained through job analysis.
DEFINITIONDEFINITION
Wendell French defines job evaluation as a process ofdetermining the relative worth of the various jobs within the
organization, so that different wages may be paid to jobs of
different worth.
OBJECTIVES OF JOB EVALUATIONOBJECTIVES OF JOB EVALUATIONThere are several objectives of job evaluation:
To develop a consistent wage policy.
To determine the rate of pay for each job which is fair and
equitable in relation to other jobs in the organization or
industry?
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To ensure that like wages are paid to all qualified employees
for like work.
To eliminate inconsistencies and inequalities in wages.
To establish a rational basis for fixing incentives and
different bonus plans.
To develop a framework for periodic review and revision of
wage rates.
To provide a basis for wage negotiations with trade unions.
To maximize if not eliminate wage discrimination on the
basis of age, sex, caste, religion etc.* Process of Job Evaluation:
The basic procedure of job evaluation is to compare the content of jobsin relation to one another , in terms of their skills or responsibility orsome other requirement. When comparable factors are available jobs
can be evaluated more systematically. Each job is compared with allthe others using the same factors , sub-factors, and number ofdegrees.
Following steps should be install to take up a job evaluationprogramme.
i)Analyze and prepare Job Description : This requires the preparation ofa job description and also an analysis of job requirements forsuccessful performance.
ii) Select and prepare a Job Evaluation Plan : This means that a jobmust be broken down into its component parts, i.e it should involve theselection of factors, elements needed for the performance of all jobsfor which money is paid, determining their value and preparing writteninstructions for evaluation.
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iii) Classify Jobs: This requires grouping or arranging jobs in a correctsequence in terms of value to the firm, and relating them to the moneyterms in order to ascertain their relative value.
iV) Install the Programme: This involves explaining it to employeesputting it to operation.
V) Maintain the Programme: Jobs cannot continue without updatingnew jobs and job changes in obedience to changing conditions andsituations.
Methods of Job Evaluation : Notes in class
RECRUITMENTRECRUITMENTThe acquisition of human resources for the organization
takes place through the process of recruitment and selection.
After the human resource needs of the organization are
identified through human resource planning, the next step is that
of recruitment and selection. One of the most difficult tasks of
the human resource manager is that of recruiting and selecting
the right kind of people for the organization.Recruitment is the first step towards procuring qualified
manpower for the organization. The process of acquiring human
resources begins with recruitment, continues with selection and
ceases with placement.
DEFINITIONDEFINITION
DeCenzo and Robbins describes recruitment as the process ofdiscovering potential candidates for actual or anticipated
organizational vacancies.
It is a linking activity aimed at bringing together those with
jobs to fill and those seeking jobs.
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A number of factors such as the size of the organization,
the employment conditions in the community, reputation of the
organization, working conditions and salary and benefits offered
by the organization affect the recruitment process.
Ideally the recruitment process should ensure that for
every position available in the organization, there are sufficient
numbers of qualified applicants. In very large organization,
recruitment is a complex and continuing process that demands
extensive planning and effort.
SOURCES OF RECRUITMENTSOURCES OF RECRUITMENT
The various sources of recruitment may be broadlyclassified in two broad categories: Internal and external sources.
Some organizations draw their human resources internally i.e.
from within the organization while others draw externally i.e.
from outside the organization.
INTERNAL SOURCES OF RECRUITMENT
The internal sources of recruitment focus on finding
qualified applicants within the organization. The organization
itself is the best source of applicants for positions above the
entry level. The internal sources of recruitment may be of the
following type:
Promotion: promoting qualified and experienced employees
may fill vacancies in the organization. Promotion refers toshifting an employee to a higher position carrying higher
status, responsibilities and pay. Promotion may be based on
performance or seniority depending upon the organizations
promotional policies.
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Transfers: Another common way of filling up vacancies is
through internal transfers. An existing employee who is
experienced and capable is transferred from one
department in the organization to another. In transfers, the
shifting of the employee occurs without any major change in
his status and responsibilities.
Job posting (internal advertisement): A popular method of
finding applicants is through job postings or internal
advertisements. Job posting involves announcing job opening
to all current employees through notices on the bulletinboards or through the company newsletters. Some
organizations have developed computerized job posting
systems so that employees can obtain information on their
on their computer screens.
Job posting carry information about the nature of the
position and qualifications needed, and any employees who is
interested in the job may apply for the same. Job
announcements ensure that employees are aware ofopportunities to move up in the organization.
Recall or retired and ex-employees: When an organization is
not able to find a suitable candidate for a vacancy, former
employees of the organization who have retired or had quit
the organization may be recalled.
Employee referrals: Another way to find applicants withinthe organization is through employee referrals. Informal
communications among managers may lead to the discovery
of a good candidate for the job. Employee referrals may be
for candidates within the organization as well as outside the
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organization. Some organizations even offer rewards to
employee whose referrals get selected in the organization.
Skills Inventories: Many firms have developed computerized
skills inventories of their employees information on every
employees skills, educational background, work history, and
other important factors is stored in the organizations
database. The skill is used to identify employees with the
attributes needed for a particular job.
A new development in this area is the Human Resource
Information System (HRIS). It is a computerized system thatassists in the processing of HRM information. It provides skill
inventory information.
The HRIS is designed to quickly fulfill the personnel
information needs to the organization. It permits the
organization to track most information about an employee and
about jobs and retrieve that when it is needed. HRIS is
extremely useful for storing employment, training and
compensation information on each employee.EXTERNAL SOURCES OF RECRUITMENT
Organizations turn to external sources of recruitment when the
internal sources of fall short. New organizations rely largely on
external sources to meet their recruitment needs. However even
well established organizations turn to external sources when
candidates with the desired skills, knowledge and qualifications
are not available in the organizations in order to introduce newblood in the organization.
There external sources of recruitment are:
o Campus recruitment: Educational and training institution
like the IIMs, IITs and other professional colleges are a
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good source of recruiting qualified and trained personnel.
Many educational institutions have placement departments
who forward and names of graduating students to
interested organizations and invite them to conduct campus
interview.
o Advertisements: Advertisements in journals, newspapers
and magazines with wide circulation is a very popular source
of recruitment. However care should be taken in preparing
the advertising so that only qualified applicants respond.
The advantage of this method is that a single
advertisement can reach millions of potential recruits. The
cost per persons is very low.As more and more people surf the inter net, the Internet as
a medium of advertising is becoming increasingly popular.
o Employment agencies: Private consulting firms carry out
recruiting functions on behalf of organizations. Firms of
such kinds are also referred to as head hunting firms.
These firms carry out all the functions of recruitment and
selection and provide organizations with candidates as per
their requirements. The employment agencies charge a feefor their services. ABC consultants, personnel search are
some of the top employment consultants in India.
o Employee recommendations: A very good external source of
recruitment is a recommendation from a current employee.
An employee will rarely recommended someone unless he is
certain that the individual will perform adequately. This is
because recommendations reflect on the recommender andhis reputation is at stake.
o Professional bodies: Professional bodies like the institute
of chartered accounts, Institute of company secretary
maintain a record of qualified persons in their specialized
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fields. Organizations can approach such bodies to meet
their specific needs.
o Deputation: In deputation the services of an experienced
employee of another organization are borrowed for a fixed
period of time. This source of recruitment is usually for
senior positions in the organization. The person on
deputation serves the borrower organization for a period of
time and then returns to the lender organization.
o Poaching: Poaching involves attracting talented and
competent persons from rival organization by offeringbetter terms and conditions of employment with regard to
salary, designations, working conditions, additional perks and
benefits. Poaching is considered to be unethical as
employees often carry with them sensitive information that
could hurt the interests of their former organization.
o Unsolicited or casual applications: Often organizations
receive unsolicited applications for jobs in the form oftelephone calls, letters, and e-mails. Organizations do not
throw such application but maintain a record of these
applications as they serve as a prospective source of
manpower.
E RecruitingE Recruiting
Perhaps no method has ever had as revolutionary an effect
on recruitment practices as the Internet. There are respective
company websites devoted in some manner to job posting
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activities. Currently, employees can electronically screen
candidates, soft attributes, direct potential hires to a special
website for online skill assessment, conduct background checks
over the Internet, interview candidates via videoconferencing,
and mange the entire process with web based software.
Companies benefit immensely through cost saving, speed
enhancement and extended worldwide candidate reach which the
Internet offers. From the job seekers perspective, the Internet
allows for searchers over a boarder array of geographic and
company posting than was possible before.
There are negatives associated with Internet recruiting.
For example, broader exposure might result in many unqualifiedapplicants applying for jobs. More resumes need to be
interviewed, more e-mails dealt with and specialized applicant
tracking software may be needed to handle the large number of
applicants who lack access to Internet.
Problems notwithstanding, both job givers as well as job
seekers find Internet as the most effective source of recruiting
and its usage in the days to come will be all pervasive.
Merits & Demerits Notes in class
SELECTIONSELECTION
Selection is the process of choosing the most suitable
person /s out of all the applicants. It is the process of choosing
the required qualifications and skills to perform the job
successfully. Selection involves screening of candidates.Screening is a process of reducing the number of applicants to a
few by way of rejecting the candidates who are not found eligible
as per the qualifications prescribed.
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Selection of employees is a managerial decision. It is the
management, which fixes the criteria for selection.
DEFINITION
According to Thomas Stone, selection is the process of
differentiating between applicants in order to identify and hire
those with a greater likelihood of success on the job.
SELECTION PROCEDURESELECTION PROCEDURE
Organizations make large investments to get the right kind of
people; hence, a sound selection procedure is necessary. Theobjective of the selection procedure is to determine whether an
applicant meets the qualifications for a specific job and to choose
the applicant who is the most likely to perform well in that job.
Although organizations differ in terms of which selection method
to use, most of the follow a fairly standardized set of steps. The
various steps involved in the selection procedure are as follows:
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SELECTION PROCEDURE
1. Preliminary interview: This is the first step in the selection
procedure. The objective of this interview is to discard
those candidates who are totally unqualified for the job.
Only suitable candidates are retained for further screening.
Preliminary interview saves time and efforts of both the
organization and the candidate. It avoids unnecessary
waiting for candidates who have no chance of being hired.The organization too benefits, as it does not waste time and
money on further processing unsuitable candidates.
The preliminary interview is the first contact of an
individual with the organization. Hence it is vital that the
PRELIMINARY INTERVIEW
APPLICATION BLANK
SELECTION TEST
EMPLOYMENT INTERVIEW
MEDICAL EXAMINATIONS
FINAL SELECTION
REFERENCE CHECKS
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staffs who are involved in this step are extremely
courteous, receptive and polite with the rejected candidate.
The candidates who seem suitable are given the application
blanks to fill.
2. Application blanks: This is a very popular method of getting
information from the candidate. The candidates are
supplied a blank specially prepared application form for
filling it with information relating to educational
qualifications, age, experience, training, past experience,
hobbies, interests etc.
While some organizations have specially preparedapplication forms, others ask candidates to prepare on their
own.
The application form has several benefits:
It helps to eliminate those candidates who are lacking in
education and experience.
It helps in formulation questions for the interview.
Information obtained through application forms can be used
for future reference.
3. Selection test: The selection or employment test is
the next step in the selection procedure. A variety of
psychological tests are used to obtain information about
various aspects to an individuals behavior, performance and
attitudes. Use of such tests is becoming increasingly
popular.
The different tests help in: Identification of differences among individuals.
Identification of the maximum and minimum
potential of the candidates.
Identification of skills, abilities, talents,
interests in the candidates.
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4. Employment interview: The interview is a widely used tool
of selecting prospective candidates for the organization. It
gives the employer and prospective employee an opportunity
to meet each other.
The selection or employment interview serves three
purposes:
It is an opportunity to obtain additional information
about the candidate and determine his suitability for the
job.
It provides information to the candidate about the
organization, the specific job for which he has applied andpersonnel policies.
It helps to establish a friendly relationship with the
candidate and motivate suitable candidates to join the
organization.
Although the employment interview is very popular,
doubts have been raised as to its reliability in selection of
the right candidate.
5. Medical examination: Applicants who have successfully
passed the above steps are now sent foe a medical
examination. Medical examination is for the following
reasons:
It helps to determine whether the candidate is mentally and
physically fit to perform the job.
It prevents employment of employees suffering from
contagious diseases. It saves expenditure that the organization may have to
incur for medical treatment of the candidate.
6. Reference checks: Applicants are frequently asked to
provide the names and address of two or three persons who
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know them well. These persons are commonly referred to as
referees or references. These persons may be previous
employers, heads of educational institutions or other public
figures.
The organization contacts the referees through mail
or by telephone to know more about the candidates
character, skills, potentialities etc. The feedback and the
comments of the referees influence the selection of the
candidate. Candidates who are evaluated positively by
referees are selected while those who are evaluated
negatively are rejected.
7. Final selection: The candidates who have cleared all
the above obstacles are recommended by the human
resources department to the concerned department for
their final approval.
On the final approval of the concerned department, the
appointment letter is issued to the candidate. The appointment
letter contains details regarding the pay scale, the post, the rank,other terms and conditions of employment and the date by which
the candidate should join the organization. Sometimes a contract
is signed between the candidate and a representative of the
organization.
INDUCTIONINDUCTION
When a new employee joins the organization, the first few
days are ones of great uncertainty. Even the calmest and most
competent employee feels a little nervous, anxious and insecure.
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This is because he is unfamiliar with the new surroundings, new
coworkers and new job procedures. Hence, most organizations
offer some kind of an induction program to help new employees
get acquired with the company and make a productive beginning on
the job. Induction programs are also commonly referred to as
orientation programs.
DEFINITIONDEFINITIONMichael Armstrong defines induction as the process of receiving
and welcoming employees when they first join the company and
giving them the basic information they need to settle down
quickly and happily and start work.
Induction is the process of familiarizing of the new
employee with the job and the organization. It includes
introducing the new employee to his or her work unit.
According to Armstrong, induction has five main aims:
1. To put new employee at ease.2. To create employee interest in the job and the
organization.
3. To provide basic information about working conditions.
4. To indicate the standards of performance and
behavior expected from the employee.
5. To tell the employee about training arrangements and
how he or she can progress in the company.
3.6 Importance of induction3.6 Importance of induction
Induction is extremely important as a new worker often
finds himself completely at sea in the workplace. Induction
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assumes even greater importance when the new employee is new
to the town / city or in some cases to the country.
Smooth entry: To make the entry of the new employee in to
the organization a smooth one as initially everything is
strange and unfamiliar to him.
Favorable attitude: To establish a favorable attitude to
the company in the mind of the new employee so that he will
stay on in the organization.
Quick adjustment: To obtain effective output from the newemployee in the shortest possible time.
Reduce employee turnover: Research has found that
employees are far more likely to resign during their first
few months after the joining the organization. Induction
reduces the likelihood of employees leaving the organization
quickly.
Increasing commitment: A proper induction makes the feel
that the organization is worth working for. This increases
employee commitment as he identities himself with the
organization, wants to stay with and is prepared to work
hard on behalf of the organization.
Understand organizational norms: Induction programs
convey to the new employee what the organization expectsfrom him in terms of behavioral norms and the values that
he should uphold.
Induction provides an opportunity to inform people of
the way things are done here. This reduces any doubts or
misconceptions that the new employee may be holding.
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Develop relationships: Induction helps to foster a close and
cordial relationship between the newcomers and the old
employees and their supervisors.
Other information: Induction serves as an opportunity to
provide other necessary information such as the location of
cafeteria, toilets, rest periods, leave rules.
ENTRY INTERVIEW FOR EFFECTIVE INDUCTION OF NEW
ENTRANT
Objectives
To ensure introduction of the new entrant to the
institution, its culture, tradition, ethos, and work ethics.
To have a formal interaction between the head of the
branch / office and the new entrant in order to haveintroduction to the job and colleagues.
To provide psychological assurance that he will be looked
after and cared in the new place.
Help the employee to shed apprehensions, if any, and feel
free in the environment.
To initiate the socialization process of the employee in the
organization on a positive note, so that the process of
emotional integration is fast and smooth.
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SYSTEM The branch manager / section In-charge conducts the
entry interview of the entry interview of the new
employee on the first first day immediately on his
joining the Branch / office.
The interview has to be conducted in a friendly
atmosphere and the employee is made to feel at ease.
Through the interview the manager elicits the
background of the employee family and profession,
his goals in life, his expectations, his capabilities andpotential.
The manager volunteers information about the banks
history, its rich heritage and culture, its mission and
goals to make the employee aware of the duties
expected from him. He also gives general information
about the Branch / office, the people working there
and also the place.
The manager finds out the needs of the employee at
the new place and helps him to settle.
The manager to introduce the new employee to his
colleagues.
A handbook step into the family for an enrichingpartnership is given to the employee.
TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
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A well-trained workforce is the greatest asset of an
organization. After the employee is selected, the next important
task for the organization is to see that the employee adjusts as
quickly as possible on the job and performs his job efficiently. In
order to do so, it is essential that the employee is properly
trained and prepared for the tasks that lie ahead.
An organization cannot function effectively when its employees
are not trained well. Lack of training is often the cause of: Poor
productivity, Errors and wastages, Unsafe working practices and
Dissatisfaction at work.
Training is basically the management of learning. The
objective of training and development is to raise the level of
performance in one or more aspects. This is achieved either by
providing new knowledge and information relevant to a job or by
teaching new skills or by imbibing an individual with new attitudes,
values, motives and other personality characteristics.
DEFINITIONDEFINITIONAccording to Edwin Flippo, training is the act of increasing the
knowledge and skill of an employee for doing a particular job.
Training prepares employees to perform their present job
even better and more efficiently. It also prepares the employee
for higher positions with increased responsibilities.
TRAINING METHODSTRAINING METHODS
A variety of methods have been developed for the training of
managers and senior executives in the organization. The different
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methods of management development may be classified as on the
on the On-the-job and Of- the-job training methods.
On-the-job training
1) Coaching: In coaching a superior guides and instructs a
junior manager. He trainees the junior in the knowledge and
skills required to do the job. This method emphasizes on
learning by doing.
In this method, the superior serves as coach who helps
the training grow and improve his performance on a day-to-
day basis. The coach sets challenging goals for the training,
informs him what is to be done and evaluate the trainees
progress towards the goals.
2) Job rotation: Job rotation is a popular management training
technique. It involves movement or transfer of managers
from one position or job to another on a plant basis. They
are move from one managerial position to another according
MANAGEMENT DEVELOPMENT PROGRAMS
On-the-job Training
1) Coaching
2) Job rotation and
transfers
3) Understudy assignments
4) Committee assignment
5) Project assignment
6) Multiple assignment
Of-the-job Training
1) Lecture method
2) Case studies
3) Conferences
4) University training
5) In-basket method
6) Wilderness training
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to a rotation schedule. Job rotation is also called as position
rotation and cross training.
The aim of job rotation is to broaden the knowledge,
skills and outlook of managers. It exposes the managers to
different jobs and department to acquaint them with all the
facets of the organization. It thus widens the managers
horizons.
Job rotation is frequently used with junior executives
and fresh college graduates who are just beginning their
working careers. Through job rotation, trainees gain
perspective on various aspects of organizatiozational life.
They have the opportunity to see and be seen by highermanagement, and to learn to direct experience where they
might best apply their knowledge, abilities and interest.
3) Understudy assignment: In the understudy method, the
trainees work directly under individuals whom they are likely
to replace. The objective of understudy assignments is to
train an employee to succeed in a specific position. The
employee may work as an assistant manager to a superiorwho trains him to shoulder his responsibilities in due course.
4) Committee assignments: Organizations frequently set up
committees and panels to investigate and study various
problems confronting the company. For example, grievances
committee, pay revision committee and so on. Trainees are
often placed in such committees so that they get a fee and
developed better understanding of the various issues facingthe organization.
5) Project assignments: In this method, a number of trainings
executives are put together to work on project i.e. closely
related to their work or department. The group called
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project in or task force studies the problem and find
appropriate solutions.
In this method the trainees learned the procedures
and techniques involved in the particular work and the inter
relationships between their department and other
departments.
6) Multiple management: This was developed Charles P. in the
U.S.A. In this method a junior board of young executives is
constituted. This board is given the authority to discuss any
problem that the senior board would discuss. They discuss a
wide variety of subjects and make recommendations to theboard of directors.
Of-the-job Training Methods
1) Lecture method: Lecture method is one of the most popular
methods. It is widely used all over the world in the field of
education as well as in the field of industrial training.
A lecture is a prepared presentation of knowledge,information, and viewpoints in order to make the learners
accept what the lecturer says. The key word is prepared.
Presentation of the lecture will spell the difference
between acceptance or rejection, interest or boredom.
2) Conferences: The conference method is commonly used
when the number of trainees is small. The conference
method encourages active participation and leads to greatertwo-way communication. The conference method permits
the participants to pull their ideas together discuss the
problem from all points of view express themselves, become
aware of the opinions of other, ask questions and seek
clarifications.
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The effectiveness of the conference method is
strongly influence by the skills and personality of the
trainer. A good trainer is able to get all the participants
involved in the discussions. He knows when to lead the group
and when to allow others to lead the discussions.
The attitude of trainees, their verbal communications
skills and eagerness to acquire knowledge and participate in
the discussion also plays a crucial role in the success of the
training method. The conference method applies the
learning principles of motivation and feedback in training
situation.
3) The case study method: The case studies, a trainee come
face to face with business situations similar to the ones
they are likely to handle future. Case studies consist of
problem situations to which the group has to find the best
possible situation. Case studies are extremely popular in
executive training programs.
In a typical case study, a complex problem or case of
the kind daily faced by the manger and executives ispresented to the trainees prior to a general meeting. The
trainees are expected to familiarize themselves with the
information and to find additional relevant information.
When they meet as a group, each member interprets the
problem and offers a solution. Then a systematic discussion
takes place. Different view are exchanged, the trainees
come to appreciate the different perspectives on a problem
and consequently different approaches to solving it. Usuallythe cases have no single correct solutions. The group leader
does not suggest and answer. The group as a whole must
reach an agreement and resolve the problem.
Through case studies, the trainees learn to diagnose
business problems, understand the critical factors in
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business and to take decisions with regard to its effects on
the organization as a whole.
4) Training in universities: Training programs required a great
deal of planning, tremendous infrastructure and trained
experts to conduct them. A major constraint is a cost
factor, which is very high. Hence many organizations depute
their employees for the different courses conducted by the
universities and other reputed institutions. Universities
have recognized the needs of the industrial community and
have devised several programs to cater to the needs of
organizations. The programs may be a very brief one-dayaffair or could extend to one year or more. To suit the
convenience of the working employee, the courses are
conducted in the evening or on weekends. The courses over
a wide variety of subjects, such as
Business policy and strategy
Human relations
General management functions
Communications Accounting
Industrial relations
Marketing
Quantitative approaches
5) In-basket method: In this method of training, the
trainee is placed in a simulated situation where he is given
basketful of items that a manager is likely to encounter onthe job such as letters, reports, memoranda, notes and
other related materials. The trainee has to respond and
make decisions on these items. The trainees decisions are
then evaluated and he is given feedback on the nature of
actions he takes.
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6) Sensitivity training: In sensitivity training, trainees
meet in small groups for a few hours every day. The training
often takes place at a comfortable retreat, removing
trainees from the daily pressures and routines of the job
and family life.
The trainers assume a passive role. There is no agenda
or format. In the beginning the discussion is very unclear
and unstructured and the topic of the discussion does not
matter. The important thing is that something to bediscussed and someone be involved in the process. In time
trainees begin to discuss themselves and one another,
pointing out their likes and dislikes, strengths and
weaknesses. Thus they examine feelings, experiences,
expressions, gestures, and behaviors, thoughts, which are
often taken for, granted in every day life.
Sensitivity training must be used with care. It has
proved to be traumatic for some individuals. The franknessand criticism that take place in sensitivity training can be
more hurting than helping.
7) Wilderness training: This training method is a recent
development. In this method executives and other
employees are involved in outdoor-based programs. The
objective of such program is to foster individual growth and
development, increase self-confidence, risk taking and buildleadership, teamwork skills.
In most wilderness programs, the learnings takes
place in a wilderness areas involving such activities as river
rafting, mountain climbing or scaling obstacles. Group
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discussions and short lectures are also included in such
programs.
There is no ideal or best method of management
development.
Each organization must design its own particular program
based on:
The climate in the organization.
The organizational level for which training is required.
The particular characteristics of the personnel to be
developed. The economic resources that the organization can allot
for training and development.
IMPORTANCE OF TRAININGIMPORTANCE OF TRAINING
Organizational training programs are very costly. When an
employee is being trained, not only the organization spending
money on him but it is also losing in terms of manpower as the
employee is away from work. However despites his loss, goodorganizations spend a considerable amount of time, effort and
money to train their employees. They feel that training of
employees is an investment, which will reap benefits and profits
for the organization in the future.
The major benefits of training are:
Higher productivity and profits: Trainings improves the
knowledge and skills of employees and hence leads to
greater efficiency in the work place. The more efficient an
employee, the higher will be the production, which in turn
will contribute to greater profits for the organization.
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Optimal use of resources: well-trained employees are able
to make optimal use of their resources (manpower,
materials, machinery and capital.) This helps in reducing
cost and time wastages.
Job satisfaction: Employees who have received training and
know their job well are a confident lot. This increases their
morale and leads to higher job satisfaction.
Safety: Training reduces errors and accidents on the job
by making the employees more competent and able at theirwork. Training helps to improve safety standards at work.
Reduces stress: An employee who knows his job well is less
likely to experience stress. Besides training in stress and
time management enable the employee to cope with
frustration and tension.
Career development: Training prepares the employees forhigher positions by developing the necessary skills and
attitudes. It improves employees prospects for
advancement and promotion within the organization. Training
prepares the employee for opportunities that will come
during his career.
For ref :TRAINING AT SBIFor ref :TRAINING AT SBI
State Bank of India is Indias largest public sector bank. It
is the second largest employer of people after the Indian
Railways. The bank currently over 2.15 lakhs personnel in various
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cadres. SBI has a separate HRD division, which looks in to the
training interests of the bank.
The SBI training philosophy is proactive, planned and
continuous. It is an integral part of organizational development.
It seeks to impart knowledge, improve skills and reorient
attitudes for individual growth and organizational effectiveness.
The HRD mission of SBI is to enable every individual to
realize and activate his potential, as to contribute to the
achievement of the banks goals and derive satisfaction there
from.
The training wing in SBI consists of nearly 65 training
centers established at various places in the country. There are
three colleges one each specialized in agricultural development,
information and technology and general banking.
At the apex level, an academy has been established at
gurgaon near Delhi. This academy provides training to the topmanagement of SBI and also to officials from other banks. Every
training center is equipped with modern infrastructure facilities
and has a suitably trained faculty.
The management of the training system is overseen by the
Chief General Manager at the central office of the bank in
Mumbai.
At the training center, various programs are conducted
throughout the year for employees in various cadres. The
programs are signed in such a manner so as to help develop the
employees ability to work more efficiently and without mistakes.
This ultimately benefits the employee as well as the institution.
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The training programs may classified in to three main divisions
1. Core Program
2. Role Related Program
3. Factitional Program
These programs are developed for all categories of employees.
They are so designed to provide full knowledge of each subject
needed for that category. Each program is designed keeping in
mind the following details:
Duration
Target group Eligibility
Objectives
PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
Once an employee has been selected, trained and placed on
the job, the next step is that of Performance Appraisal.
Performance appraisal is the process of evaluating theperformance of the employee in the organization. Performance
appraisal is the process by which the management finds out how
well or how badly the employee is performing on the job.
Performance appraisal is beneficial both to the employee as
well as to the organization. Performance appraisal is a kind of
feedback to the employee. It enables him to understand whether
his work is satisfactory r whether he needs any improvement inhis performance. Performance appraisal reveal to an employee his
strengths and weaknesses, enhancing his self-confidence in some
areas and encouraging him to improve his performance in other
areas.
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Performance appraisal provides feedback to the
management whether an employees is up to the mark and whether
he is contributing to the attainment of organizational goals.
Important management decisions such as promotions, transfers,
demotions, raises in salary, training and so on are
Made on the basis of the performance appraisal reports.
4.5 DEFINITION4.5 DEFINITIONAccording to the Indian National Institute of Personnel
management, performance Appraisal is a technique of assessing,
as impartially as possible, the attributes, strengths, weaknesses,
capacity and attitudes of individual employee in relation to his
job.
C. D. Fisher describes Performance Appraisal as the process by
which an employees contribution to the organizations during aspecified period of time is assessed.
Performance appraisal has three basic functions:
1. Performance appraisal seeks to provide adequate
feedback to each individual on his or her performance.
2. Performance appraisal serves as a basis for improving
or changing behavior towards more effective workinghabits.
3. Performance appraisal aims to provide data to
managers with which they may judge future job
assignments and compensation.
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MAJOR USES OF PERFORMANCE APPRAISALMAJOR USES OF PERFORMANCE APPRAISAL
Some of the major uses of performance appraisal are:
o Personnel Training: Performance appraisal provides
information about the employees strengths and weaknesses.
Once weaknesses in knowledge, skills, and abilities are
identified it can be corrected through additional training.
However appraisal should be only on job related
characteristics and training should focus on those areas of
poor performance that attributed to the individual and not
due to other factors in the work environment.Thus performance appraisal serves as a diagnostic kit for
identifying employee strength and weaknesses.
o Wage and Salary Administration: Performance appraisals
are frequently used to determine the salary raise to be
given to the employees. Increases in pay are often linked to
the employees job performance.
It is suggested that personnel development and salaryadministration should not be combined in the same
appraisal as employees become defensive. This is because:
Employees attach greater importance to raises, as
they are more immediate and real.
Personnel development loses its importance if
admitting weaknesses means a lower raise.
This problem can be overcome by having two appraisals one
for employee development and another for salary raise. It isalso suggested that the same person should not conduct the
process of employee development and salary fixation.
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o Placement: Information through performance appraisal is
useful in making placement decisions.
Trainee employees are appraised by exposing them to
various tasks in the areas of finance, marketing, accounting
etc. On the basis of their performance the trainees are
placed in the field that they performed the best.
Thus performance appraisal is useful in making optional
use of employee abilities and talents.
o Promotions: Performance appraisal is helps in identifying
the better performing employees. It helps us to compare
the performance of the employees. The performanceappraisal is useful in making promotional decisions.
However it must be remembered that promotions are not
determined by performance only. Seniority (job experience)
plays an important role. Experts suggest that the seniority
and merit may be used to make promotional decisions.
o Discharge: Performance appraisal provides evidence of
inadequate job performance by the employee. Thisinformation can be used to determinate or dismiss
employees.
In order to prevent lawsuits, organizations must maintain
proper records and documents relating to employees
performance. The organization should be able to
demonstrate that the decision to terminate the employee
was a fair one and used as the last resort.
o Job satisfaction: A fair performance appraisal maintains
employee initiative and morale leading to greater job
satisfaction.
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o Feedback: Performance appraisal provides information of an
employees weaknesses or deficiencies in knowledge, skills
and abilities that once identified can be corrected through
additional training. Performance appraisal can also be used
determine the usefulness of a training program by
determining whether an employees job performance
improved after the training period.
MODERN METHODS OF PERFORMANCE ANDMODERN METHODS OF PERFORMANCE AND
APPRAISALAPPRAISAL
The modern methods of performance appraisal focus more
on the evaluation of work results and job achievements rather
than personality traits.
The new methods of performance appraisal are as follows:
Management by Objectives: Management Guru Peter Drucker is
credited for the development of management by objectives,popularly known as MBO.
MBO involves a mutual agreement between the employee and
supervisor on goals to be achieved in a given time. MBO focuses
on results on how well employees accomplish specified goals. The
emphasis is on what employee does rather than on what
supervisors think of them or perceive their behaviors to be. MBO
actively involves employees in their own evaluations. They are not
simply graded or rated by others.
MBO consist of two phases: Goal setting and Performance
review
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Goal setting: In this place the employees meet their
supervisors individually to determine the goals to be
achieved within a specified time and discus ways of
reaching those specified goals. The goals are set by
mutual agreement between the supervisor and the
subordinate. The goals must be realistic, specific and
as objective as possible.
Performance review: In this phase the employee and
the supervisor meet after the specified period of time
and discuss the extent to which goals were met. Thesupervisor attempts to solve any problems that the
subordinate faces and new goals are set. The
supervisors role is that of a listener and guide but
never that of a critic.
Assessment Centers: The assessment center in
an organization is the place where individuals are assessed
in as systematic and scientific manner as possible. Anassessment center is a place specially designed equipped for
a specific purpose appraisal.
The objective of assessment center is to evaluation of
individuals for future growth and development. The
evaluations are made not on the job but are based on
observations of behavior and on the results obtained in
psychological tests. In an assessment center a through and
complete evaluation is done of the individual his strengths,weaknesses and personality characteristics.
Techniques of assessment
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Organizations use different techniques of assessment
depending upon their specific needs and requirements. Some
of the common techniques of assessment are:
Role-playing: In this, the candidate acts out the role
of a manager in a simulated situation, showing for an
example, how he or she would conduct a job interview.
In basket test: In this form of evaluation, the
candidate is placed in a simulated situation where he is
given a basketful of items that a manager is likely to
encounter on the job such as letters, reports,memoranda, notes and other related materials. The
candidate has to respond and make decisions on these
items. The candidate is evaluated on the nature of
actions he takes.
A Leadership group discussion co-operative nature:
In this, members of a group are presented with a
problem. The individual members of the group areobserved on their contributions towards the solution
as well as for their interaction with other members of
the group.
Behaviorally Anchored Rating Scales (BARS): Smith
and Kendall developed the original behaviorally