4 Personnel Management

Introduction

Personnel management can be defined as obtaining, using and maintaining a satisfied

workforce. It is a significant part of management concerned with employees at work and
with their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation,

integration and maintenance of people for the purpose of contributing to organizational,
individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with
human resource of organization.”

Personnel management can also be understood as Human resource management (HRM or

HR) is the strategic approach to the effective management of people in a company or
organization such that they help their business gain a competitive advantage. It is designed
to maximize employee performance in service of an employer's strategic objectives.

Nature of Personnel Management

1. Personnel management includes the function of employment, development and

compensation. These functions are performed primarily by the personnel
management in consultation with other departments.
2. Personnel management is an extension to general management. It is concerned with
promoting and stimulating competent work force to make their fullest contribution
to the concern.
3. Personnel management exist to advice and assist the line managers in personnel
matters. Therefore, personnel department is a staff department of an organization.
4. Personnel management lays emphasize on action rather than making lengthy
schedules, plans, work methods. The problems and grievances of people at work can
be solved more effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their
potential fully to the concern.
6. It also motivates the employees through it’s effective incentive plans so that the
employees provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to
human resources, it manages both individual as well as blue- collar workers.

Role of Personnel Manager

Personnel manager is the head of personnel department. He performs both managerial and
operative functions of management. His role can be summarized as :
 1. Personnel manager provides assistance to top management- The top management
are the people who decide and frame the primary policies of the concern. All kinds of
policies related to personnel or workforce can be framed out effectively by the
personnel manager.
2. He advices the line manager as a staff specialist- Personnel manager acts like a staff
advisor and assists the line managers in dealing with various personnel matters.
3. As a counsellor,- As a counsellor, personnel manager attends problems and
grievances of employees and guides them. He tries to solve them in best of his
capacity.
4. Personnel manager acts as a mediator- He is a linking pin between management and
workers.
5. He acts as a spokesman- Since he is in direct contact with the employees, he is
required to act as representative of organization in committees appointed by
government. He represents company in training programmes.

Functions of Personnel Management

Following are the major four functions of Personnel Management:

1. Manpower Planning
2. Recruitment
3. Selection
4. Training and Development

Elements of Personnel Management

Following are the elements of Personnel Management:

1. Organization- Organization is said to be the framework of many activities taking

place in view of goals available in a concern. An organization can be called as a
physical framework of various interrelated activities. Right from manpower planning
to employees’ maintainance, all activities take place within this framework. The
nature of the organization is dependent upon it’s goal. The business concern goal
being profit- making. Clubs, hospitals, schools,etc. their goal being service. The
objective of consultancy being providing sound advice. Therefore, it is organizational
structure on which the achievement of goals of an enterprise depends upon. In
personnel management, a manager has therefore to understand the importance of
organizational structure.
2. Job - The second element, i.e., jobs tell us the activities to be performed in the
organization. It is said that the goals of an enterprise can be achieved only through
the functional department in it. Therefore, seeing the size of organization today, the
nature of activities are changing. In addition to the three primary departments,
personnel and research department are new additions. Various types of jobs
available are :
a. Physical jobs
b. Creative jobs
c. Proficiency jobs
 d. Intellectual jobs
e. Consultancy jobs
f. Technical jobs

3. People - The last and foremost element in personnel management is people. In a

organizational structure, where the main aim is to achieve the goals, the presence of
manpower becomes vital. Therefore, in order to achieve departmental goals,
different kinds of people with different skills are appointed.

People form the most important element because :

a. The organizational structure is meaningless without it.

b. It helps to achieve the goals of the enterprise.
c. It helps in manning the functional areas.
d. It helps in achieving the functional departmental goals.
e. They make a concern operational.
f. They give life to a physical organization.

The different types of people which are generally required in a concern are :

g. Physically fit people

h. Creative people
i. Intellectuals
j. Technical people
k. Proficient and skilled people

In personnel management, a personnel manager has to understand the relationship of the

three elements and their importance in organization. He has to understand basically three
relationships:-

i. Relationship between organization and job

ii. Relationship between job and people
iii. Relationship between people and organization.

Relationship between organization and job helps making a job effective and significant.
Relationship between job and people makes the job itself important. Relationship between
people and organization gives due importance to organizational structure and the role of
people in it.

Performance Appraisal

Performance Appraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and
plans.
 2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure,

salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right
job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified
by following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be
dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation packages
for employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance. Compensation packages which
includes bonus, high salary rates, extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria should be merit rather than
seniority.
3. Employees Development: The systematic procedure of performance appraisal helps
the supervisors to frame training policies and programmes. It helps to analyse
strengths and weaknesses of employees so that new jobs can be designed for
efficient employees. It also helps in framing future development programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to understand the
validity and importance of the selection procedure. The supervisors come to know
the validity and thereby the strengths and weaknesses of selection procedure.
Future changes in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between employees
and employers is very important. Through performance appraisal, communication
can be sought for in the following ways:
a. Through performance appraisal, the employers can understand and accept
skills of subordinates.
 b. The subordinates can also understand and create a trust and confidence in
superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a person’s efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and helps him to improve
his performance in the future.

Handling Employees After Performance Appraisals

Performance appraisal refers to the elaborate process of reviewing one’s performance and
output over a certain period of time and not only give correct feedbacks but also
acknowledge and appreciate the hard work. Appraisal letters cause a lot of anxiety and
sometimes disappointment among employees. Individuals never create problems when they
get a good salary hike but trust me, handling employees after a bad appraisal is a big
challenge.

Let us go through few tips on how to handle employees after performance appraisals:

Never forget to congratulate employees who have got a decent appraisal or a promotion
and a positive review from the management. It will further motivate them and also instil a
sense of pride and most importantly responsibility in them. Make them feel important. If
someone has worked really hard all through the year, he/she definitely deserves to be
praised for his/her efforts and encouraged to perform better in the years to come. Celebrate
his/her success.

Employees who had an unsatisfactory year and eventually a bad appraisal are the ones
who need most of your attention and care. One of the most common problems with such
employees is that they suddenly become negative about everything, find reviewing
authorities as their biggest enemies and also start hating their organization. Yes, logically
such a behaviour is not expected out of a mature professional but we can’t completely
blame the poor individual also who after slogging for a year did not get appraisal as per
his/her expectations.

As they say “with a little love, we can even change the world”. Such employees need to be
handled with utmost patience. Sit with such employees and first of all try to find out as to
why they failed this time. Try to understand their mood and also what they feel about their
appraisal? It is obvious that they would not be in a great mood but as a superior it is your
duty to cheer them up so that they do not lose their confidence and eventually interest in
work and finally quit. Employees also need to understand that there is always a next time
and there is no point reacting and fighting with people around. After all it would not solve
your problem, instead earn you a bad name in the organization.
Understand where the individual went wrong. All negativities and confusions would
disappear if you make the individual understand where all he/she lacked and why his
counterpart has got a decent appraisal while he/she has not? Yes, employees at this point of
time are really not in a mood to listen to their superiors but you have to assure them that as
a Boss, you are always there with them and would certainly help in future as well.
Understand if at all the individual is facing any problem or not and most importantly try to
provide a solution. Yes, after a bad appraisal, employees tend to become negative but as a
Boss it is your responsibility to change their perception.

Let them speak and come out with their frustrations. Employees should also be careful
with their words. Never cross your limits. Handhold such employees and provide necessary
guidance whenever required. Send them a motivational email. Such small initiatives go a
long way in motivating employees so that they become a little more serious and come back
with a bang. Make them understand that this is just a temporary phase and should not act
as a demotivating factor for them. Encourage them to work in unison with their fellow
workers, read a lot and most importantly believe in the organization and its process.

How to Combat Stress, Burnout, Loneliness, and Low Productivity at the Workplace

The Problems of Demanding Workplaces

Contemporary workplaces are very demanding in terms of the physical and mental toll they
extract from the employees. With ever-increasing competition among businesses and scarce
resources, organizations demand more from the employees who perceive it as asking too
much for too less.

Also, longer working hours, the need to be reachable at all times of the day, and the
insistent checking of Emails and messages on one’s Smartphone, both for personal and
professional reasons leaves employees distracted, unfocused, tired, and burnout.

The combination of stress, technology-mediated working, and loneliness due to lack of

emotional empathy among coworkers leads to low productivity.

This creates a vicious loop where low productivity becomes the norm which makes
employers demand that employees perform better and in turn, push the same factors that
have created the situation in the first place.

Thus, the challenging work environment leads to physical health issues such as RSI or
Repetitive Strain Injury, caused by sitting longer hours at the desk and using computers and
Smartphones in a repetitive manner as well as mental health issues such as depression, and
lack of focus that leads to repeated absence from work and hence, monetary and non-
monetary losses for both employers and employees.
Some Measures that Employers can implement to address these problems

However, these problems are not insurmountable meaning that employers and employees
need not put up with these disorders at work that leads to financial and emotional losses.
Instead, some practical steps can be taken to combat these problems.

For instance, research has shown that multitasking at work where employees constantly
switching from working on deliverables and checking Emails and Social Media updates or
talking on the phone between work tasks can be addressed by having them take breaks
from work that are designed to let them release stress by chatting with other coworkers or
logging into the internet.

In this way, Human Resource Managers can monitor the employees better by walling of
personal and professional work. Further, employees can be asked to desist from checking
social media at their work desks and instead, providing them with access to dedicated
computers that they can use during their breaks. Apart from this, HR managers can also
encourage employees to talk about their personal problems with assigned mentors in
confidence so that they can be motivated to work better by actualizing a caring and sharing
the workplace.

Some Recent Steps taken by Governments

Indeed, some of the measures that corporates and governments around the world are
taking are pointers to the ways and means as well as the solutions that can be used to
address these problems.

For instance, France passed a law recently where employers are prohibited from requiring
their employees to be available past the working hours thereby ensuring that they can
spend quality time with their families.

In addition, Britain recently passed the Thriving at Work Act that encourages employers to
support employees with personal problems as well as psychological issues to take time off
with full benefits so that they can recuperate and rejuvenate themselves. In addition, the
act specifies that employers select designated mentors to talk to the employees and guide
them through their challenges and problems.

Apart from this, another practical measure that can be taken includes setting up hotlines
where employees can call them and talk to them about their problems in confidence.

Above all, what these measures address are the problems of loneliness and stress caused by
overworking as well as lack of emotional empathy between coworkers due to technology
and the ever-accelerating pace of life. Indeed, measures such as working from home and
having peer groups to promote bonding can also help.
Employees too need to take responsibility

Having said that, it is not only the employers but also the employees who have to take
responsibility for their work-related problems. It is not enough to ban social media at the
work desks when employees can login on their Smartphones.

Since it is practically not possible to ban personal phones, the employees have to voluntarily
not check them during work and attend only to personal calls that are urgent in nature. In
addition, if possible, not smoking at work can be a good way to address personal health
issue and low productivity.

Apart from this, employees must also focus on work during the work hours so as to not
leave work for the evenings or at home that would help them refresh the next day’s work.

Further, employees should make an effort to reach out to their co-workers and engage with
them so that lasting bonds are formed between them that can lead to further
improvements in the quality of life at the workplace.

Thus, it is indeed the case that to combat these modern day problems at the workplace, all
stakeholders must act together to ensure that such problems are addressed.

Conclusion

Lastly, the key point to note here is that contemporary organizations have reached a stage
where they either address these issues or risk falling into the low productivity trap.

Indeed, the fact that worldwide there has been a decrease in employee productivity at work
as reported by recent research shows that there is an urgent need to address these
problems before they go out of hand.

To conclude, personal responsibility and employer-supported measures would go a long

way in addressing the present crisis in organizations that would not only lead to a happier
and healthier workplace but would also improve organizational outcomes.

Employee Discipline and Features of a Sound Disciplinary System

Discipline means systematically conducting the business by the organizational members

who strictly adhere to the essential rules and regulations. These employees/organizational
members work together as a team so as to achieve organizational mission as well as vision
and they truly understand that the individual and group aims and desires must be matched
so as to ensure organizational success.

A disciplined employee will be organized and an organized employee will be disciplined

always. Employee behaviour is the base of discipline in an organization. Discipline implies
confirming with the code of conduct established by the organization. Discipline in an
organization ensures productivity and efficiency. It encourages harmony and co-operation
among employees as well as acts as a morale booster for the employees. In absence of
discipline, there will be chaos, confusion, corruption and disobedience in an organization.

In short, discipline implies obedience, orderliness and maintenance of proper subordination

among employees. Work recognition, fair and equitable treatment of employees,
appropriate salary structure, effective grievance handling and job-security all contribute to
organizational discipline.

Discipline is viewed from two angles/dimensions:

1. Positive Discipline: Positive Discipline implies discipline without punishment. The

main aim is to ensure and encourage self-discipline among the employees. The
employees in this case identify the group objectives as their own objectives and
strive hard to achieve them. The employees follow and adhere to the rules and
regulations not due to the fear of punishment but due to the inherent desire to
harmonize in achieving organizational goals. Employees exercise self-control to meet
these goals.
2. Negative Discipline: Employees adhere to rules and regulations in fear of
punishment which may be in form of fines, penalties, demotions or transfers. In this
case, the employees do not perceive organizational goals as their own goals. The
action taken by the management to ensure desired standard of behaviour/code of
conduct from the employees in an organization is called negative discipline. The fear
of punishment prevents the employees from going off-track.

Characteristics of a Sound Disciplinary System (Red Hot Stove Rule)

Discipline should be imposed without generating resentment. Mc Gregor propounded the

“red hot stove rule” which says that a sound and effective disciplinary system in an
organization should have the following characteristics-

1. Immediate- Just as when you touch a red hot stove, the burn is immediate, similarly
the penalty for violation should be immediate/ immediate disciplinary action must
be taken for violation of rules.
2. Consistent- Just as a red hot stove burns everyone in same manner; likewise, there
should be high consistency in a sound disciplinary system.
3. Impersonal- Just as a person is burned because he touches the red hot stove and not
because of any personal feelings, likewise, impersonality should be maintained by
refraining from personal or subjective feelings.
4. Prior warning and notice- Just as an individual has a warning when he moves closer
to the stove that he would be burned on touching it, likewise, a sound disciplinary
system should give advance warning to the employees as to the implications of not
conforming to the standards of behaviour/code of conduct in an organization.

In short, a sound disciplinary system presupposes-

 1. Acquaintance/Knowledge of rules- The employees should be well aware of the
desired code of conduct/ standards of behaviour in the organization. This code of
discipline should be published in employee handbook.
2. Timely action- Timely enquiry should be conducted for breaking the code of conduct
in an organization. The more later the enquiry is made, the more forgetful one
becomes and the more he feels that punishment is not deserved.
3. Fair and just action- There should be same punishment for same offence/
misconduct. There should be no favouritism. Discipline should be uniformly enforced
always.
4. Positive approach- The disciplinary system should be preventive and not punitive.
Concentrate on preventing misconduct and not on imposing penalties. The
employees should not only be explained the reason for actions taken against them
but also how such fines and penalties can be avoided in future.

Types of Penalties for Misconduct/Indiscipline

For not following the standards of behaviour/code of conduct in an organization, there are
two kinds of penalties categorized as-

Major penalties - This includes demotion, dismissal, transfer, discharge, withholding

increments, etc.

Minor penalties - This includes oral warning, written warning, fines, loss of privileges, etc.

Employee Grievance - Effective Ways of Handling Grievance

Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an

employee experiences about his job and it’s nature, about the management policies and
procedures. It must be expressed by the employee and brought to the notice of the
management and the organization.

Grievances take the form of collective disputes when they are not resolved. Also they will
then lower the morale and efficiency of the employees. Unattended grievances result in
frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism, etc. In
short, grievance arises when employees’ expectations are not fulfilled from the organization
as a result of which a feeling of discontentment and dissatisfaction arises. This
dissatisfaction must crop up from employment issues and not from personal issues.

Grievance may result from the following factors-

a. Improper working conditions such as strict production standards, unsafe workplace,

bad relation with managers, etc.
b. Irrational management policies such as overtime, transfers, demotions,
inappropriate salary structure, etc.
 c. Violation of organizational rules and practices

The manager should immediately identify all grievances and must take appropriate steps to
eliminate the causes of such grievances so that the employees remain loyal and committed
to their work. Effective grievance management is an essential part of personnel
management. The managers should adopt the following approach to manage grievance
effectively-

1. Quick action- As soon as the grievance arises, it should be identified and resolved.
Training must be given to the managers to effectively and timely manage a
grievance. This will lower the detrimental effects of grievance on the employees and
their performance.
2. Acknowledging grievance- The manager must acknowledge the grievance put
forward by the employee as manifestation of true and real feelings of the
employees. Acknowledgement by the manager implies that the manager is eager to
look into the complaint impartially and without any bias. This will create a conducive
work environment with instances of grievance reduced.
3. Gathering facts- The managers should gather appropriate and sufficient facts
explaining the grievance’s nature. A record of such facts must be maintained so that
these can be used in later stage of grievance redressal.
4. Examining the causes of grievance- The actual cause of grievance should be
identified. Accordingly remedial actions should be taken to prevent repetition of the
grievance.
5. Decisioning- After identifying the causes of grievance, alternative course of actions
should be thought of to manage the grievance. The effect of each course of action on
the existing and future management policies and procedure should be analyzed and
accordingly decision should be taken by the manager.
6. Execution and review- The manager should execute the decision quickly, ignoring
the fact, that it may or may not hurt the employees concerned. After implementing
the decision, a follow-up must be there to ensure that the grievance has been
resolved completely and adequately.

An effective grievance procedure ensures an amiable work environment because it

redresses the grievance to mutual satisfaction of both the employees and the managers. It
also helps the management to frame policies and procedures acceptable to the employees.
It becomes an effective medium for the employees to express t feelings, discontent and
dissatisfaction openly and formally.

Employee Relations - Importance and Ways of Improving Employee Relations

Maintaining healthy employee relations in an organization is a pre-requisite for

organizational success. Strong employee relations are required for high productivity and
human satisfaction. Employee relations generally deal with avoiding and resolving issues
concerning individuals which might arise out of or influence the work scenario. Strong
employee relation depends upon healthy and safe work environment, cent percent
involvement and commitment of all employees, incentives for employee motivation, and
effective communication system in the organization. Healthy employee relations lead to
more efficient, motivated and productive employees which further lead to increase in sales
level.

Good employee relation signifies that employees should feel positive about their identity,
their job as well as about being a part of such a great organization. Despite the importance
of strong and healthy employee relations, there are circumstances in the life of every
organization when employee and management relations are hampered. Instances of such
circumstances are as follows-

1. When the employees do not behave as per accepted norms of behaviour, it is known
as employee indiscipline. Absenteeism, change in employee’s behaviour, slow
performance and grievances are all forms of employee indiscipline. Thus, when the
employees fail to meet management expectations in terms of standard performance
and behaviour, it is referred to as indiscipline. In such cases, it must be ensured by
the management that steps should be taken so that employee’s behaviour is in
conformity with the managerial expectations.
2. Similarly, the employees also expect from the management to provide them a safe
working environment, fair treatment, proper incentives, participation in decisions,
and needs satisfaction. The failure on part of management to meet these
expectations is termed as employee grievance.
3. When the employees fail to meet their own expectations whether in terms of
personal goals, career goals, performance, self-respect, etc it is referred to as
employee stress. Excessive workload, insufficient workload, peer pressure,
excessive/unreasonable use of authority by the management, lack of promotional
opportunities, nature of job, etc all again lead to employee stress.

All the above mentioned organizational factors influencing employees relation must be
carefully tackled. An optimistic approach to strengthen disciplinary culture rooted on shared
norms of employees should be adopted. An effective grievance redressal system should be
there. Stress management strategies should be followed in the organization.

Improving Employee Relations

Employee relations must be strengthened in an organization. To do so, following points

must be taken care of:-

i. Employee has expectation of fair and just treatment by the management. Thus,
management must treat all employees as individuals and must treat them in a fair
manner. Employee favouritism should be avoided.
ii. Do not make the employees’ job monotonous. Keep it interesting. Make it more
challenging. This can be done by assigning employees greater responsibilities or
indulging them in training programmes.
iii. Maintain a continuous interaction with the employees. Keep them updated about
company’s policies, procedures and decisions. Keep the employees well-informed.
Informed employees will make sound decisions and will remain motivated and
productive. Also, they will feel as a member of organizational family in this manner.
 iv. Employees must be rewarded and appreciated for a well-done job or for
achieving/over-meeting their targets. This will boost them and they will work
together as a team.
v. Encourage employee feedback. This feedback will make the employers aware of the
concerns of employees, and their views about “you” as an employer.
vi. Give the employees competitive salary. They should be fairly paid for their talents,
skills and competencies.
vii. Be friendly but not over-friendly with the employees. Build a good rapport with the
employee. The employee should feel comfortable with the manager/supervisor
rather than feeling scared.

Job Evaluation

Job evaluation is a process of determining the relative worth of a job. It is a process which is
helpful even for framing compensation plans by the personnel manager. Job evaluation as a
process is advantageous to a company in many ways:

1. Reduction in inequalities in salary structure - It is found that people and their

motivation is dependent upon how well they are being paid. Therefore the main
objective of job evaluation is to have external and internal consistency in salary
structure so that inequalities in salaries are reduced.
2. Specialization - Because of division of labour and thereby specialization, a large
number of enterprises have got hundred jobs and many employees to perform
them. Therefore, an attempt should be made to define a job and thereby fix salaries
for it. This is possible only through job evaluation.
3. Helps in selection of employees - The job evaluation information can be helpful at
the time of selection of candidates. The factors that are determined for job
evaluation can be taken into account while selecting the employees.
4. Harmonious relationship between employees and manager - Through job
evaluation, harmonious and congenial relations can be maintained between
employees and management, so that all kinds of salaries controversies can be
minimized.
5. Standardization - The process of determining the salary differentials for different
jobs become standardized through job evaluation. This helps in bringing uniformity
into salary structure.
6. Relevance of new jobs - Through job evaluation, one can understand the relative
value of new jobs in a concern.

According to Kimball and Kimball,“ Job evaluation represents an 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.”

Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a
job is calculated while in performance appraisal, the worth of employee is rated.
Performance Appraisal

Performance Appraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and
plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure,

salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right
job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified
by following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be
dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation packages
for employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance. Compensation packages which
includes bonus, high salary rates, extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria should be merit rather than
seniority.
3. Employees Development: The systematic procedure of performance appraisal helps
the supervisors to frame training policies and programmes. It helps to analyse
strengths and weaknesses of employees so that new jobs can be designed for
efficient employees. It also helps in framing future development programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to understand the
validity and importance of the selection procedure. The supervisors come to know
 the validity and thereby the strengths and weaknesses of selection procedure.
Future changes in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between employees
and employers is very important. Through performance appraisal, communication
can be sought for in the following ways:
a. Through performance appraisal, the employers can understand and accept
skills of subordinates.
b. The subordinates can also understand and create a trust and confidence in
superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a person’s efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and helps him to improve
his performance in the future.

Training of Employees - Need and Importance of Training

Training of employees takes place after orientation takes place. Training is the process of
enhancing the skills, capabilities and knowledge of employees for doing a particular job.
Training process moulds the thinking of employees and leads to quality performance of
employees. It is continuous and never ending in nature.

Importance of Training

Training is crucial for organizational development and success. It is fruitful to both

employers and employees of an organization. An employee will become more efficient and
productive if he is trained well.

Training is given on four basic grounds:

1. New candidates who join an organization are given training. This training familiarize
them with the organizational mission, vision, rules and regulations and the working
conditions.
2. The existing employees are trained to refresh and enhance their knowledge.
3. If any updations and amendments take place in technology, training is given to cope
up with those changes. For instance, purchasing a new equipment, changes in
technique of production, computer implantment. The employees are trained about
use of new equipments and work methods.
4. When promotion and career growth becomes important. Training is given so that
employees are prepared to share the responsibilities of the higher level job.
The benefits of training can be summed up as:

1. Improves morale of employees- Training helps the employee to get job security and
job satisfaction. The more satisfied the employee is and the greater is his morale, the
more he will contribute to organizational success and the lesser will be employee
absenteeism and turnover.
2. Less supervision- A well trained employee will be well acquainted with the job and
will need less of supervision. Thus, there will be less wastage of time and efforts.
3. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills
required for doing a particular job. The more trained an employee is, the less are the
chances of committing accidents in job and the more proficient the employee
becomes.
4. Chances of promotion- Employees acquire skills and efficiency during training. They
become more eligible for promotion. They become an asset for the organization.
5. Increased productivity- Training improves efficiency and productivity of employees.
Well trained employees show both quantity and quality performance. There is less
wastage of time, money and resources if employees are properly trained.

Ways/Methods of Training

Training is generally imparted in two ways:

1. On the job training- On the job training methods are those which are given to the
employees within the everyday working of a concern. It is a simple and cost-effective
training method. The inproficient as well as semi- proficient employees can be well
trained by using such training method. The employees are trained in actual working
scenario. The motto of such training is “learning by doing.” Instances of such on-job
training methods are job-rotation, coaching, temporary promotions, etc.
2. Off the job training- Off the job training methods are those in which training is
provided away from the actual working condition. It is generally used in case of new
employees. Instances of off the job training methods are workshops, seminars,
conferences, etc. Such method is costly and is effective if and only if large number of
employees have to be trained within a short time period. Off the job training is also
called as vestibule training,i.e., the employees are trained in a separate area( may be
a hall, entrance, reception area,etc. known as a vestibule) where the actual working
conditions are duplicated.

Methods of Training Employees at Workplace

Trainings help employees enhance their capabilities and acquire new learnings, skills and
knowledge. Trainings help employees come up with unique and innovative ideas, meet
targets within the desired time frame and make them efficient resources for the
organization.

One needs to understand that lot of time, money and energy go in designing training
programs for employees. Managers need to understand where all their team members are
lacking and need improvement. One needs to be very clear how training programs would
benefit the employees. Managers need to sit with human resource professionals and design
specific training programs keeping in mind the needs and requirements of employees.
Training programs conducted just for the sake of it yield no results.

Training programs should not only be designed for existing employees but also for new
candidates.

Let us go through various training methods at the workplace:

Induction Training - Induction training is often given to new employees to make them feel a
part of the organization. How do you think an individual can perform if he/she is not familiar
with the policies and rules and regulations of the organization? You can’t expect an
individual to deliver results on the first day itself. You need to welcome your employees well
for them to feel motivated and comfortable. Induction programs need to be designed
sensibly. Too much of information on the day of joining will frighten the new employee and
believe me, he/she will not come from the next day onwards. Induction programs help new
employees to get acquainted with the work culture and fellow workers. Induction programs
need to be short, crisp but informative.

Refresher Training - Refresher trainings are designed for existing employees to refresh them
and also help them acquire new skills and technologies to keep pace with the changing
times. Such training programs prepare employees for more responsible positions.

On the Job Trainings - On the job trainings are given to employees at the workplace itself by
their superiors and Bosses. Managers ought to sit with their team members on a regular
basis, train them on new technologies, skill sets to help them cope with the changes. On the
job trainings are given to employees along with their jobs itself and make them capable to
handle bigger responsibilities.

On the Job trainings are imparted by any of the following methods:

a. Coaching - Coaching is also defined as learning by doing and handling various

ongoing projects. In this method of training, team manager assigns certain job
responsibilities to team members, monitors their performance, points out their
mistakes, provides them feedbacks and also suggestions for improvement.
b. Job Rotation - In this type of training, employees move from one position to
another, thus acquiring new skills and learning. Job rotation acquaints individuals
with newer roles and challenges and makes them capable of performing any type of
task.

Employees need to be encouraged to go through various online learning sites which would
help them in their current job responsibilities. One needs to be aware of the latest
developments in his/her domain. Reading helps a lot.
Off the job Training - Off the job trainings are given outside the workplace.

Off the job trainings can be provided by any of the following methods:

a. Seminars/Conferences - Seminars and conferences are effective when training

needs to be given to a larger audience. Relevant information, latest developments,
new technologies and case studies are discussed on a common platform to acquaint
employees with new skill sets.
b. Simulation Exercise - Simulation exercises train the employees in an artificial
environment which closely resembles the employee’s actual working conditions.
c. Vestibule Trainings - In vestibule trainings, employees practice work on the
instrument/equipment which they would be using in future when they would be
actually working.

Management Games and Role Plays train employees to deal with critical problems and
teach them to find innovative solutions.

Link: https://www.managementstudyguide.com/personnel-management.htm