HUMAN RESOURCE MANAGEMENT

HR: “THE MOST VIBRANT AND DYNAMIC RESOURCE” – PULAPA SUBBA RAO
Introduction:-
Henry Fayol the pioneer in the field of management state “Take out my building
take out my machines and all
capital but leave my men with me, I will become Henry Fayol again”. This
statement of Henry Fayol highlights
that human resources in an organization plays a crucial role.
The human resource refers to the knowledge, skills, abilities, values, aptitude &
beliefs possessed by the
workforce in organization.
Human Resource Management:-
Meaning:
HRM is a process of bringing people & organization together so that the goals of
each are met. It is the part of
the management process which is concerned with the management of human
resources in an organization &
tries to secure best from the people by winning their wholehearted co-operation.
In short, it may be defines
as the art of procurement, developing and maintaining competent workforce to
achieve the goals of an
organization in an effective and efficient manner.
Definitions:
1.According to Edwin Flippo: HRM is planning, organizing, directing, controlling of
procurement,
development, compensation, integration, maintenance & separation of human
resources to the end so that
individual, organizational & social objectives are achieved.
2. HRM is the organizational function that deals with issues related to people such
as compensation, hiring,
performance management, organization development, safety, wellness benefits,
employee motivation,
communication, administration &training.
3. HRM is the process of attracting developing & maintaining a talented &
energetic workforce to support
organizational mission, objectives & strategies.
Nature of HRM:
1. Pervasive function: HRM is present in all the enterprises.
2. Action oriented: Scope of HRM is not only limited to record keeping.
3. Individually oriented
4. People oriented
5. Future oriented
6. Development oriented
7. Integrated Function
8. Comprehensive function: It covers all the type of personnel.
9. Auxiliary service: It is a staff function(Advice)
10. Inter disciplinary function
11. Continuous function
12. Involves team sprit & team work
13. Management function
14. Helps in achieving goals i.e. individual, organizational & social objectives.
15. Involves procurement, development & maintenance of human resource.
Functions of HRM: The functions of HRM can be broadly classified into two
categories: 1. Managerial Functions 2. Operative Functions
(I). MANAGERIAL FUNCTIONS: i. Planning: In the area of human resource
management planning involves deciding human resource goals, planning human
resources, requirements, recruitment, selection, training etc. ii. Organising: It is
concerned with proper grouping of personnel activities, assignment of duties and
delegation of authority. iii. Directing: It involves the process of motivating,
leading, supervising, activating and guiding the personnel as and when necessary.
iv. Controlling: It involves measurement of employees performance & taking
corrective action.
(II). OPERATIVE FUNCTIONS: Operative functions are related to specific activities
of personnel management through:
1. Procurement or Employment function
2. Development function
3. Compensation Function
4. Maintenance or Human Relation
5. Integration Function
1) Procurement or employment function: Employment is concerned with
securing & employing the right kind and proper number of people required to
accomplish the organizational objective. It consists
of the following activities: a. Job Analysis: It is the process of studying in detail the
operations and responsibilities involved in a job. b. HR Planning c. Recruitment d.
Selection e. Placement f. Induction or orientation
2) Development Function: It is the process of improving, molding & changing the
skill knowledge, creativity, attitude, values, commitments etc. of employees so
that they can permorm the present and future jobs more effectively. It includes:
a. Performance appraisal b. Training c. Management Development: It is the
process of developing managerial talent through appropriate programmes. d.
Career Planning and Development: It involves planning the career of employees
and implementing career plans so as to fulfil the career aspiration of employees.
3) Compensation Function: It is the process of providing adequate equitable & fair
remuneration to the employees. It includes: a. Job Evaluation: It is the process of
determining the relative worth of a job. b. Wage & salary administration: It
implies developing and operating a suitable wage and salary programme. c. Bonus
d. Fringe Benefits: These are the various extra benefits provided to employees in
addition to the compensation paid in the form of salary or wage. Ex .Recreation
facilities, Education facility to children etc. e. Social Security Measures: Ex.
Medical benefits, sick benefits, maternity benefits etc.
4) Human Relations: It is the process of interaction among human beings. It
includes: a. Motivation b. Employee Morale c. Communication Skills d. Leadership
skills e. Redressing Employee Grievances f. Counseling the employees g.
Improving quality of work life of employees
5) Integration Function: It is the process of integrating the goals of an
organization with employees goals through various employee oriented
programmes such as grievances handling, Instituting proper disciplinary
measures, employee participation etc.
2. scope and significance: Scope of HRM: 1. HR planning: HRP refers to a process
by which the company identifies the no. of jobs vacant, whether the company has
excess staff or shortage of staff & to deal with this excess or shortage of staff. 2.
Job analysis design: It gives a detailed explanation about each & every job in the
company. 3. Recruitment & Selection: Recruitment is searching for the
prospective employee & selection is process used to identify & hire individual. 4.
Orientation & induction: once a employee is being selected an induction program
is conducted.
5. Training & development: Every employee goes under training program which
helps him to put up a better performance on the job.
6. Performance Appraisal: HR department conducts appraisal programs & based
on that appraisals decide future promotions, incentives, increments in salary etc.
7. Compensation Planning & Remuneration: Compensation Planning ensures that
jobs are fairly compensated and more difficult jobs are paid more. It ensures
equal pay or equal work. 8. Motivation, Welfare, Health & Safety: It deals with
working condition and amenities such as canteens, crèches, rest and lunch rooms,
medical assistance, education, health and safety, recreation facilities. 9. Industry
Relations: It includes maintaining relation with the union members, settlement of
disputes, grievances handling.
ROLE OF PERSONNEL MANAGER: HR managers perform different type of roles.
They are as follows: 1. Administrative role 2. Operational role 3. Strategic role 1.
Administrative role: It includes:  Policy Maker: Hr manager helps management in
the formation of policies governing talent acquisition and retention, wage and
salary administration, welfare activities etc.
 Administrative Expert: Here the role of HR manager is heavily oriented to
processing and record keeping.  Advisor: Personnel management is not a line
responsibility but a staff function. Staff function advices, suggests, counsel and
help the line managers in discharging their responsibility.  Housekeeper: It
includes recruiting, pre-employment testing, refrence checking, employee
surveys, wage and salary administration etc.  Counselor: The personnel manager
discusses various problems of the employees relating to work, career, their
supervisors, colleagues, health, family, financial, social etc and advises them on
minimizing and overcoming problems, if any.  Welfare Officer: As a welfare
officer he provides and maintains canteens, hospitals, crèches, clubs, libraries etc.
 Legal Consultant: Personnel manager plays a role of grievance handling, settling
of disputes, handling disciplinary cases, doing collective bargaining etc. 2.
Operational roles:  Recruiter  Trainer, developer, motivator.
 Coordinator/Linking pin  Mediator 3. Strategic Roles: The strategic role of HR
management focuses attention on how to enable ordinary employees to turn out
extra ordinary performance, taking care of their ever changing expectations. 
Change Agent: HR’s role as a change agent is to replace resistance with resolve,
planning with results and fear of change with excitement about its possibilities. 
Hr helps an organization identify the key success factors for change and assess
organization’s strength and weaknesses.  Strategic Partner: Hr role is to deliver
strategic services cost effectively by building a competent, consumer oriented
workforce. It must assume important roles in strategy formulation as well as
strategy implementation.
3. JOB ANALYSIS Job analysis is a formal and detailed examination of jobs. It is
systematic investigation of the tasks, duties, responsibilities necessary to do a job.
A task is an identifiable work activity carried out for a specific purpose. For
example, typing a letter. A duty is a larger segment consisting of several tasks that
are performed by an individual, or example pick up, sort out and deliver incoming
mail. Job responsibilities are obligations to perform certain tasks and duties.
Uses of Job Analysis – 1) Human Resource Planning – Job analysis helps in
forecasting human resource requirements in terms of knowledge and skills. It also
helps in determining quality of human resources needed in an organization. 2)
Recruitment – Job analysis is used to find out how and when to hire people for
future job openings. For ex: company might be traditionally hiring MBA students
for marketing purpose but through job analysis showed that the position can be
filed by hiring a graduate with marketing skills. 3) Selection – Without a proper
understanding of what is to be done on job, it is not possible to select the right
person. 4) Placement and orientation – After selection people, we have to place
them on jobs best suited to their interest, activities, and aptitude, if we are not
sure about what is to be done on a job, it is not possible to teach a new employee
how to handle a job. 5) Training – If there is confusion about what the job is and
what is supposed to be done, proper training efforts cannot be initiated. 6)
Counseling – Managers can properly counsel the employees about their careers
when they understand the different jobs in the organization. 7) Employee Safety –
A thorough job analysis reveals unsafe conditions associated conditions
associated with the job. 8) Performance Appraisal – In performance appraisal we
compare the work of an employee what he has to do and what he is actually
doing. What the employee is supposed to do is based on job analysis. 9) Job
design and redesign – Jobs are understood more properly through job analysis. It
is easy to locate the weak points in any and take remedial steps. 10)Job
Evaluation – Job evaluation is finding the worth of any job i.e. how much is to be
paid for any particular job. This can be done through job analysis as it tells the
degree of difficulty in any job, type of work done, skills and knowledge needed etc
which is the basis on evaluating the job worth
Process of Job analysis The major steps involved in job analysis are as follows –
1) Organisational Analysis – Firstly we need to obtain an overall picture of the
various jobs in an organization. 2) Selection of representative positions – It
is not possible to analyse all jobs. A representative sample of jobs to be
analyzed is decided keeping the cost and time constraints in mind. 3)
Collection of Job analysis data – This step involves the collection of data on
the characteristics of the job, the required behaviour and personal
qualification needed to carry out the job effectively. 4) Preparation of Job
description – This step involves describing the contents of the job in terms
of functions, duties responsibilities operation etc. 5) Preparation of job
specification – This step involves conversion of job description statements
into job specification. Job Description – A job description (JD) is a written
statement of what the job holder does, how it is done, under what
conditions it is done and why it is done. Contents –  Job title  Job
summary  Job activities  Working conditions  Social environment Job
specification Job specification summaries the human characteristics needed
for satisfaction needed for satisfactory job completion. It tires to describe
the key qualifications someone needs to perfrom the job successfullt. It
spells out the important attributes of a person in terms of education,
experience, skills, knowledge and abilities (SKAs) to perform a particular
job.
4. TRAINING & DEVELOPMENT

INTRODUCTION Training is a specialized function of human resource

management. Every organization needs to have well defined trained people
to perform the activities. As job have become more complex it s necessary
to raise the skills level of employees. MEANING & DEFINITION OF
TRAINING:- It is true in many organizations that before an employee is
fitted into a harmonious working relationship with other employees, he is
given adequate training. Training is the act of increasing the knowledge &
skills of an employee for performing a particular job. A trainee learns new
habits, refined skills and useful knowledge during the training that helps
him improve performance. It is a systematic procedure for transferring
technical knowhow to the employees. According to Edwin B. Flippo.
“Training is the act of increasing the knowledge & skills of an employee for
doing particular job.” According to deal B. Beach “the organized procedure
by which people learn knowledge and skill for a definite purpose”. Thus
training refers to the teaching and learning activities directed at helping
employees acquire & apply the knowledge skills, abilities & attitudes
needed by a particular job & organization. CHARACTERISTICS or NATURE OF
TRAINING 1. Training is an act of increasing the knowledge, skills of an
employee for doing a particular job. 2. Training is a continuous process. 3. It
involves changing of skills, knowledge, attitudes or social behavior. 4. It is
learning process & experience. 5. It seeks relatively permanent change in an
individual that will improve. 6. Training is an aid to self development. 7.
Essential part of management development. 8. Focus attention on the
current job and it is job specific & addresses particular performance defeats
or problems. 9. Concentrates on individual employees. 10. Training
complement selection if well qualified candidates are selected, there will be
less need of training inside the organization. NEEDS & OBJECTS OF
TRAINING Training is needed to serve the following purpose 1. Job
requirements–Newly recruited employee require training so as to perform
their tasks effectively. 2. Promotion- Training is necessary to prepare
existing employees for higher level jobs. 3. Transfers-Training is necessary
to when a person moves from one job to another job. After training the
employee can change job quickly, improve his performance levels &
achieve career goals compatibly. 4. Technological changes-Technology is
chaining very fast. New jobs require new skills. No organization can miss
the advantages of latest technology without well trained employees. 5.
Increasing competition-Due to economic liberalization & globalization the
firms are experiencing & expansion & diversification of business &
products. The kin competition has increased uncertainties & complexities in
the market. Thus, in order to face such challenges the firms has to improve
their capabilities. TYPES OF TRAINING OR APPROACHES OF TRAINING 1.
Orientation Training – It is also known as pre job induction training. This
training provides new employees with information about company policies,
history, procedure pay & benefits, conditions of employment etc. This
training adjusts newly appointed employees to the work environment.
TYPES OF TRAINING OR APPROACHES OF TRAINING 1. Orientation Training
– It is also known as pre job induction training. This training provides new
employees with information about company policies, history, procedure
pay & benefits, conditions of employment etc. This training adjusts newly
appointed employees to the work environment.
2. Skills training – This type of training is most common in organizations.
The need for training in basic skills such as reading, writing, computing,
peaking, listing problem solving, leading etc. is identified through
assessment. 3. Refresher Training – Rapid changes in technology may force
companies to go in for this king of training organizing short term courses
which incorporate the latest knowledge developments in a particular field,
the company may keep its employee up to date and ready to take emerging
challenges. 4. Cross functional training- Involves training employees to
perform operations in areas other than their assigned jobs. There are many
approaches to cross functional training job rotation can be used to provide
a manager in one functional area with a broader perspective than they
would otherwise have departments can exchange personnel for a certain
period so that each employee how other departments are functioning. 5.
Training for promotion- employees of high potential are selected & they are
given training before promotion. This training is provided when vacant
posts are filled up by internal recruitment i.e. by promotion. 6. Safety
Training- This training is being provided to minimize accidents & damage to
machinery. It involves instruction in use of machinery & safety devices. 7.
Apprentice Training- It is used to prepare employees for a variety of skilled
occupations & crafts for examples it is provided to tailor electrotyper,
machinist, printing pressman, designer etc. 8. Internship training- It refers
to joint programme of training educational institutions & business
corporate selected students carry on regular school studies for period
ranging from 3 to 12 months & then work in the factory or office for a
designed period of time. 9. Remedial Training- This training has the object
to overcome he short coming in the behavior and performance of old
employees. Such employees are indentified and correct work methods and
procedures are taught to them. 10. Diversity Training- Considers all of the
diverse dimension in the work place, such gender, age, disability, lifestyle,
culture education, idea etc. while designing a training programme. It
concentrates on awareness building & skills building. 11. Job Training- This
training is a conducted with a well increase the knowledge & skills of an
employee for improving job performance. 12. Creative Training- Involves
employees to ink unconventionally, go out of the box & levies unexpected
solutions.
The Training Process:- In order to achieve the objectives, an approximate
training programme is necessary The process is as follows1. Organizational
objectives: - An organization first assesses its objective. What business are
use in what product do we wish to provide to customers? These questions
will decide what skills, knowledge, attitudes & other personnel attributes
are necessary for employees. 2. Training Policy: - A training policy presents
the commitment of top management to employee training. It consists of
rules & procedures concerning training. A training policy is required to
guide the design & implementation of training programme.
The Training Process:- In order to achieve the objectives, an approximate
training programme is necessary The process is as follows1. Organizational
objectives: - An organization first assesses its objective. What business are
use in what product do we wish to provide to customers? These questions
will decide what skills, knowledge, attitudes & other personnel attributes
are necessary for employees. 2. Training Policy: - A training policy presents
the commitment of top management to employee training. It consists of
rules & procedures concerning training. A training policy is required to
guide the design & implementation of training programme.
PHASE OF TRAINING OR SYSTEMATIC APPROACH TO TRAINING 1. Training
needs Assessment – Training efforts must aim at meeting the requirement
of the organization & the individual employees. The goal of assessment
phase is to collect information to determine if training is needed in the
organization. If it is needed then it is important to determine where in the
organization it is needed, what kind of training is needed what specific
knowledge, skills, abilities should be taught. It includes:- (a) Organizational
analysis:- It involves a study of entire organization in kermes of its various
objectives &. Its integration patterns with environments. (b) Task or Role
analysis:- This is a detailed examination of a job, its components its various
operations & conditions under which it has to be performed. (c) Person
analysis:- Here the focus is on the individual in a given job. 2.
Implementation phase:- Implementation of training programme includes 1.
Selecting training methods – Whether on the job training or of the job
training.
2. Conduct training 3. Arrange physical environment.
3. Evaluate phase- The goal of evaluation phase is to examine whether the
training programme has been effective in meeting the stated objectives.
IMPORTANCE Training offers innumerable benefits to both employees and
employers. It makes the employee more productive and more useful to an
organization. The importance of training can be studied under the following
heads: Benefits to the business: Rained workers can work more efficiently.
They use machines, tools and materials in a proper way. Wastage is thus
eliminated to a large extent. There will be fewer accidents. Training
improves the knowledge of employees regarding the use of machines and
equipment. Hence, trained workers need not be put under close
supervision, as they know how to handle operations properly. Trained
workers can show superior performance. They can turn out better
performance. They can turn our better quality goods by putting the
materials, tools and equipment to good use. Training makes employees
more loyal to an organization. They will be less inclined to leave the unit
where there are growth opportunities. Benefits to the employees: Training
makes an employee ore useful firm. Hence, he will find employment more
easily. Training makes employees more efficient and effective. By
combining materials, tools and equipment in a right way, they can produce
more with minimum effort. Training enables employees to secure
promotions easily. They can realize their career goals comfortably. Training
helps an employee to move from one organization to another easily. He can
be more mobile and pursue career goals actively. Employees can avoid
mistakes, accidents on the jo. They can handle jobs with confidence. They
will be more satisfied on their jobs. Their morale would be high. Thus,
training can contribute to higher production, fewer mistakes, greater job
satisfaction and lower labour.
AREAS OF TRAINING The area of Training in which training is offered may
be classified into the following categories. 1. Knowledge Here the trainee
learns about a set of rules and regulations about the job, the staff and the
products or services offered by the company. The aim is to make the
employee fully aware of what goes on inside and outside the company. 2.
Technical Skills The employee is taught a specific skill (e.g., operating a
machine, handling computer etc.) so that he can acquire that skill and
contribute meaningfully. 3. Social Skills The employee is made to learn
about himself and others, and to develop a right mental attitude towards
the job, colleagues and the company. The principal focus is on teaching the
employee how to be a team member and get ahead. TRAINING METHODS
Training methods are usually classified by the location of instruction. On
the job training is provided when the workers are taught relevant
knowledge, skills and abilities at the actual workplace; off-the-job training,
on the other hand, requires that trainees learn at a location other the real
work sot. Some of the widely used training methods are listed below. ON
THE JOB TRAINING METHODS: 1. Job instruction Training (JIT) The JIT
method (developed during World War II) is a four-step instructional process
involving preparation, presentation, performance try out and follow up. It is
used primarily to teach workers how to do their current jobs. A trainer,
supervisor or co-worker acts as the coach. The four steps followed in the JIT
methods are: 1. The trainee receives an overview of the job, its purpose
and its desired outcomes, with a clear focus on the relevance of training. 2.
The trainer demonstrates the job in order to give the employee a model to
copy. The trainer shows a right way to handle the job. 3. Next, the
employee is permitted to copy the trainer’s way. Demonstrations by the
trainer and practice by the trainee are repeated until the trainee masters
the right way to handle the job. 4. Finally, the employee does the job
independently without supervision. Merits:  Trainee learns fast through
practice and observation.  It I economical as it does not require any special
settings. Also mistakes can be corrected immediately.  The trainee gains
confidence quickly as he does the work himself in actual setting with help
from supervisor.  It is most suitable for unskilled and semi-skilled jobs
where the job operations are simple; easy to explain and demonstrate
within a short span of time. Demerits:  The trainee should be as good as
the trainer if the trainer is not good, transference of knowledge and skills
will be poor.  While learning, trainee may damage equipment, waste
materials and cause accidents frequently,  Experienced workers cannot
use the machinery while it is being used for training. 2. Coaching Coaching
is a kind of daily training and feedback given to employees by immediate
supervisors. It involves a continuous process of learning by doing. It may be
defined as an informal, unplanned training.
and development activity provided by supervisors and peers. In coaching,
the supervisor explains things and answer questions; he throws light on
why things are done the way they are; he offers a model for trainees o
copy; conducts lot of decision making meetings with trainees; procedures
are agreed upon and the trainee is given enough authority to make
decisions and even commit mistakes. Of course, coaching can be a taxing
job in that the coach may not possess requisite skills to guide the learner in
a systematic way. Sometimes, doing a full day’s work may be more
important than putting the learner on track. 3. Mentoring: Mentoring is a
relationship in which a senior manager in an organization assumes the
responsibility for grooming a junior person. Technical, interpersonal and
political skills are generally conveyed in such a relationship from the more
experienced person. A mentor I a teacher, spouse, counselor, developer of
skills and intellect, host, guide, exemplar and most importantly, supporter
and facilitator in the realization of the vision the young person (protégé)
has about the kind of life he wants a an adult. The main objective is to help
employees attain physiological maturity and effectiveness and get
integrated with the organization. In a work situation, such mentoring can
take place at both formal and informal levels, depending on the prevailing
work culture and the commitment from the top management. Formal
mentoring can be very faithful, if management invests tie and money in
such relationship building experiences. 4. Job Rotation: This kind of training
involves the moment of trainee from one job to another. This helps him to
have a general understanding of how the organization functions. The
purpose of the job rotation is to provide trainees with a larger
organizational perspective and a greater understanding of different
functional area as well as a better sense of their own career objectives and
interest. Apart from relieving boredom, job rotation allows trainees to build
rapport with a wide range of individuals within the organization, facilitating
future cooperation among departments. The cross-trained personnel offer
a great amount of flexibility for organizations when transfers, promotions
or replacements become inevitable. 5. Apprenticeship Training Most craft
workers such as plumbers and carpenters are trained through formal
apprenticeship programmes. Apprentices are trainees who spend a
prescribed amount of time working with an experienced guide, coach or
trainer. Assistantship and internships are similar to apprenticeships
because they also demand high levels of participation from the trainee. An
internship is a kind of on-the job training that usually combines job training
with classroom instruction in trade schools, colleges or universities.
Coaching, as explained above, is similar to apprenticeship because the
coach attempts to provide a model for the trainee to copy. One important
disadvantage of the apprenticeship methods is the uniform period of
training offered to trainees. People have different abilities and learn at
varied rates. Those who learn fast may quite the programme in frustration.
Slow learners may need additional training time. It is also likely that in
these days of rapid changes in technology, old skills may get outdated
quickly. Trainees who spend years learning specific skills may find, upon
completion of their programmes, that the job skills they acquired are no
longer appropriate. 6. Committee Assignments In this method, trainees are
asked to solve an actual organizational problem. The trainees have to work
together and offer solution to the problem. Assigning talented employees
to important committees can give these employees a broadening
experience and can help them to understand the personalities, issues and
processes governing the organization. It helps them to develop team spirit
and work with unity toward common goals. However, managers should
very well understand that committee assignments could become notorious
time wasting activities. The above on-the-job methods are cost effective.
Workers actually produce while they learn. Since immediate feedback is
available, they motivate trainees to observe and learn the right way of
doing things. Very few problems arise in the case of transfer of training
because the employees learn in the actual work environment where the
skills that are learnt are actually used. Onthe-job methods may cause
disruptions in production schedules. Experienced workers cannot use the
facilities that are used in training. Poor learners may damage machinery
and equipment. Finally, if the trainer does not possess teaching skills, there
is very little benefits to the trainee.

OFF-THE-JOB METHODS Under this method of training, the trainee is

separated from the job situation and his attention is focused upon learning
the material related to his future job performance. Since the trainee is not
distracted by job requirements, he can focus his entire concentration on
learning the job rather than spending his tie in performing it. There is an
opportunity for freedom of expression for the trainees. Off-the-job training
methods are as follows: a. Vestibule training: In this method, actual work
conditions are simulated in a classroom. Material, fifes and equipment –
those that are used in actual job performance are also used in the training.
This type of training s commonly used for training personnel for clerical and
semi-skilled jobs. The duration of this training ranges from a few days to a
few weeks. Theory can be related to practice in this method. b. Role
playing: It is defined as a method of human interaction that involves
realistic behavior in imaginary situations. This method of training involves
action, doing and practice. The participants play the role of certain
characters, such as the production manager, mechanical engineer,
superintendents, maintenance engineers, quality control inspectors,
foreman, workers and the like. Method is mostly used for developing
interpersonal interactions and relations. c. Lecture method: The lecture is a
traditional and direct method of instruction. The instructor organizes the
material and gives in to a group of trainees in the form of a talk. To be
effective, the lecture must motivate and create interest among the
trainees. An advantage of lecture method is that it is direct and can be used
for a large group of trainees. Thus, costs and time involved are reduced.
The major limitation of the lecture method is that it does not provide for
transfer of training effectively. d. Conference/discussion approach: In this
method, the trainer delivers a lecture and involves the trainee in a
discussion so that his doubt the job gets clarified. When big organizations
use this method, the trainees uses audio-visual aids such as black boards,
mockups and slides; in some cases the lectures are videotaped or audio
taped. Even the trainee’s presentation can be taped for self confrontation
and self assessment. The conference is thus, group-centered approach
where there is a classification of ideas, communication of procedures and
standards to the trainees. Those individuals who have a general educational
background and whatever specific skills are required such as typing,
shorthand, office equipment operation, filing, indexing, recording etc. may
ne provided with specific instructions to handle their respective jobs. e.
Programmed instruction: This method has become popular in recent years.
The subject matter to be learned is presented in a series of carefully
planned sequential units. These units are arranged from simple to more
complex levels of instruction. The trainee goes through these units by
answering questions or filing the blanks. This method is thus, expensive and
time-consuming. EVALUATION OF A TRAINING PROGRAMME The
specification of value forms a basis for evaluation. The basis of evaluation
and the mode of collection of information necessary for evaluation should
be determined at the planning stage. The process of training evaluation has
been defined as any attempt to obtain information on the effects of
training performance and to assess the value of training in the light of that
information. Evaluation helps in controlling and correcting the training
programme. Hamblin suggested five levels at which evaluation of training
can take place, viz, reactions, learning, job behavior, organization and
ultimate value 1. Reactions: Trainee’s reactions to the overall usefulness of
the training including the coverage of the topics, the method of
presentation the techniques used to clarify things, often throw light on the
effectiveness of the programme. Potential questions to trainees might
include: i. What were your learning goals for the programme. ii. Did you
achieve them? iii. Did you like this programme? iv. Would you recommend
it to others who have similar learning goals? v. What suggestions do you
have for improving the programme? vi. Should the organization continue to
offer it.
2. Learning: Training programme, trainer’s ability and trainee’s ability are
evaluated on the basis of quantity of content learned and time in which it is
learned and learner’s ability to use or apply the content learned. 3. Job
behavior: This evaluation includes the manner and extent to which the
trainee has applied his learning to his job. 4. Organization: This evaluation
measures the use of training, learning and change in the job behavior of the
department/organization in the form of increased productivity, quality,
morale, sales turnover and the like. 5. Ultimate value: It is the
measurement of ultimate result of the contributions of the training
programme to the company goals like survival, growth, profitability etc. and
to the individual goals like development of personality and social goals like
maximizing social benefit. Methods of Evaluation Various methods can be
used to collect data on the outcomes of training. Some of these are: 
Questionnaires: Comprehensive questionnaires could be used to obtain
opinions, reactions, and views of trainees.  Tests: Standard tests could be
used find out whether trainees have learnt anything during and after the
training.  Interviews: Interviews could be conducted to find the usefulness
of training offered to operatives.  Studies: Comprehensive studies could
be carried out eliciting the opinions and judgments of trainers, superiors
and peer groups about the training.  Human resource factors: Training
can also be evaluated on the basis of employee satisfaction, which in turn
can be examined on the basis of decrease in employee turnover,
absenteeism, accidents, grievances, discharges, dismissals, etc.  Cost
benefit analysis: The cost of training (cost of hiring trainers, tools to learn,
training centre, wastage, production stoppage, opportunity cost of trainers
and trainees) could be compared with its value (in terms of reduced
learning time, improved learning superior performance) I order to evaluate
a training programme. Feedback: After the evaluation, the situation should
be examined to identify the probable causes for gaps in performance. The
training evaluation information (about costs, time spent, outcomes etc)
should be provided to the instructors, trainees and other parties concerned
for control, correction and improvement of trainees activities. The training
evaluator should follow it up sincerely so as to ensure effective
implementation of the feedback report at every stage.
5. CAREER PLANNING Concept of career:
According to E.H. Schein, “A career is a sequence of positions held by a
person during the course of a lifetime. It comprise of a series of activities
that provide continuity, order and meaning to a person’s life.” Features: 1.
It is a proper sequence of job related activities. 2. It may be individual
centered or organization centered. 3. It is a sequence of career progression
within an occupation. 4. It is a lateral movement in an occupation of an
individual over his employment span. 5. It is a sum total of all the jobs
occupied by a person during his working life. 6. A career develops overtime
7. The important element in one’s career is experiencing psychological
success which is feeling a sense of personal accomplishment and
fulfillment. 8. It is the individual who ultimately must judge the success of
his career.
Meaning of Career Planning: Career planning is the process by which one
selects career goals and the path to reach goals. The major focus of career
planning is on assisting the employees achieve a better match between
personal goals and the opportunities that are realistically available in the
organization. Career programs should not concentrate only on career
growth opportunities. Hence, career planning efforts need to pinpoint and
highlight those areas that offer psychological success instead of vertical
growth. According to Schermerbon, hunt and osborm, “Career planning is a
process of systematically matching career goals and individual capabilities
with opportunities for their fulfillments. Objectives of career planning: 1.
Attract and retain talent by offering careers not jobs. 2. Use human
resources effectively and achieve greater productivity. 3. Improve
employee morale and motivation. 4. To encourage individuals to explore
and gather information, which enables them to gain competencies. Make
decisions, set goals and take action. 5. To increase employee productivity.
6. To prevent job obsolescence. 7. To improve the quality of employee
work life. 8. To help companies meet internal staffing requirements and
reduce turnover. 9. To help companies meet their need for challenge and
achievements of career goals. 10. To develop an awareness of each
employee uniqueness. Advantages  Benefits to employee: The employee
has advance knowledge of career opportunities within the company. He
knows where he stands, where he wants to go, who is ahead of him, how to
scale the corporate ladder. This helps him set his career goals more
realistically and take appropriate steps to realize them.  Benefits to
organization: Organization can base their decisions more systematically.
Fast tracks for stars could be arranged, training to slow movers can be
provided, replacements can be planned in advance, hard hard-working,
talented people can be retained through offering attractive career options
and compensation plans: job assignments can be made based on merit etc.
 Relations: Relations between the employer and the employee would
become more cordial; employee skills could be used properly; valued
employees could be retained, there will be an expanded image of the
company as a people developer. Limitations  For small units (where there
are very few opportunities for the vertical growth of employees) it is not
suitable.  Several environmental factors such as government policy, laws
of the land, reservation based on castes, regional pressures, union
demands may upset career planning and development efforts.  In the
organization fails to focus on any of the career related issue clearly,
problems may crop up (eg., early career issues, mind career issues, late
career issues, minority group, dual career couples, failure to match task and
emotional needs, post retirement issues, forced lay-off issues etc.). Process
of Career Planning: The career planning process involves the following
steps: a. Identifying individual needs and aspirations: The basic purpose of
such an exercise is to an employee form a clear view about what he should
do to build his career within the company. Workshops and seminars
increase employee’s interest by showing the value of career planning. They
help employees set career goals, identify career paths and uncover specific
career developments activities. b. Analyzing career opportunities:
Once career need and aspirations of employees are known the organization
has to provide career paths for each position. Career paths show career
progressions, possibilities clearly. They indicate the various positions that
one should hold over a period of time, if one is able to perform well. c.
Aligning needs and opportunities: This process consists of two steps:
identify the potential of employees and then undertake career
developments programs with a view to align employee need and
organizational opportunities. d. Action plans and periodic reviews: The
action plans of individual career development are made. This will be helpful
for the employee to know in which direction he is moving. INTERNAL
MOBILITY: “The lateral or vertical movement of an employee within an
organization is called internal mobility.” It may take place between jobs in
various departments or divisions. Some employees may leave the
organization for reasons such as better prospects, retirements,
terminations etc. Such movements are known as internal mobility’s.
Purpose of Internal Mobility: 1. Improve organizational effectiveness 2.
Improve employee effectiveness 3. Adjust to changing business operations
4. Ensure discipline Internal mobility can take place in any of the following
manner: 1. Promotion 2. Demotion 3. Transfer.
PROMOTION: Promotion is an upward movement of employee in the
organization to another job, higher in organization hierarchy. In the new
job the employee finds a change in salary, status, responsibilities and grade
of job or designation. Types of Promotion: Vertical promotion: Under
vertical promotion the employees are promoted, from one rank to next
higher rank in the same department. Horizontal promotion: Under such
promotion, employee may be promoted to higher ranks in other
departments as well. Base of promotion: Seniority based promotion: If
sonority is the basis for promotion, an employee with the longest period of
service will get promoted, irresponsive of whether he is competent to
occupy the higher post or not.
PROMOTION: Promotion is an upward movement of employee in the
organization to another job, higher in organization hierarchy. In the new
job the employee finds a change in salary, status, responsibilities and grade
of job or designation. Types of Promotion: Vertical promotion: Under
vertical promotion the employees are promoted, from one rank to next
higher rank in the same department. Horizontal promotion: Under such
promotion, employee may be promoted to higher ranks in other
departments as well. Base of promotion: Seniority based promotion: If
sonority is the basis for promotion, an employee with the longest period of
service will get promoted, irresponsive of whether he is competent to
occupy the higher post or not.
Merits of seniority based promotion: 1. It is fairly objective 2. It is easy to
measure the length of service and judge the seniority. 3. By seniority,
everyone is sure of getting the promotion one day. 4. It I easy to administer.
5. Labour unions welcome seniority based promotions. 6. Loyalty is
rewarded. 7. Seniority and experience goes hand in hand. Demerits of
seniority based promotion: 1. The learning capabilities of senior people may
diminish (reduce). 2. It demotivates the young and ore competent
employees. 3. It skills the zeal and interest as everybody will be promoted
without showing any all round growth or promise. 4. Promotion by
seniority frustrates really talents employees. 5. It destroys initiative of
people. Merit based promotion Merit based promotion occur when an
employee is promoted because of superior performance in the current job.
Merits: 1. Promotion by merit is a reward to encourage those employees
who make a successful effort to increase their knowledge or skills and who
maintain a high level of productivity. 2. It motivates employee to work
hard. 3. It helps employee to improve their knowledge, acquire new skill
and contribute to organizational efficiency. 4. Efficiency is encouraged,
recognized and rewarded. 5. Productivity increases. 6. Organization goals
can be attained effectively
Merits of seniority based promotion: 1. It is fairly objective 2. It is easy to
measure the length of service and judge the seniority. 3. By seniority,
everyone is sure of getting the promotion one day. 4. It I easy to administer.
5. Labour unions welcome seniority based promotions. 6. Loyalty is
rewarded. 7. Seniority and experience goes hand in hand. Demerits of
seniority based promotion: 1. The learning capabilities of senior people may
diminish (reduce). 2. It demotivates the young and ore competent
employees. 3. It skills the zeal and interest as everybody will be promoted
without showing any all round growth or promise. 4. Promotion by
seniority frustrates really talents employees. 5. It destroys initiative of
people. Merit based promotion Merit based promotion occur when an
employee is promoted because of superior performance in the current job.
Merits: 1. Promotion by merit is a reward to encourage those employees
who make a successful effort to increase their knowledge or skills and who
maintain a high level of productivity. 2. It motivates employee to work
hard. 3. It helps employee to improve their knowledge, acquire new skill
and contribute to organizational efficiency. 4. Efficiency is encouraged,
recognized and rewarded. 5. Productivity increases. 6. Organization goals
can be attained effectively.
Voluntary Separations: 1. Quits: W.H. Mobley says that the decision to quit
depends on: (i) The employees level of dissatisfaction with the job and (ii)
The number of attractive alternatives the employee has outside the
organization. 2. Voluntary Retirements or resignations: An employee may
decide to resign voluntary on personal or professional reasons. Sometimes
employee may be forced to resign from the job compulsorily in the grounds
of duty, misuse of funds etc. Involuntarily Separations 1. Mandatory
Retirements: Retirements has been characterized by some as a role less
role. It is a compulsory retirement of the employee from his services. 2.
Discharge and Dismissal: Discharge is the most drastic disciplinary step that
manager can take. Dismissal is the termination of the services of an
employee as punitive measure for some misconduct. Discharge also means
termination of the service of an employee, but not necessary as a
punishment. Discharge is serious because it impairs earning and image of
the employees. 3. Layoffs: A layoff is a temporary separation of the
employee from his employer at the instance of the latter without any
prejudice to the farmer. Layoff is the failure, refusal or inability of an
employer to give employment to a worker whose name is present join the
rolls but who has not been retrenched. 4. Retirement: Retrenchment is the
permanent termination of employee’s services due to economic reasons.
These include a) Replacement of labour by machines b) Closure of plant c)
Surplus staff 5. Suspension of an employee: Suspension means prohibiting
an employee from attending workplace and reforming normal duties
assigned to him. Till the enquiry and investigation in case of misconduct is
completed, the employee is kept suspended.

6. JOB EVALUATION Wage or salary is the most important factor in

maintaining and developing good employer employee relations. Job
evaluation is the process which establishes a consistent and systematic
relationship among compensation rates for all jobs within the organization.
Determining of base compensation is also important for the employee
become it determines the status of employee in the society. Employee
should be compensated on the basis of – 1) The nature of the job 2) The
present relative worth of the job. 3) The defectiveness with which the
individual performs the job. According to Flippo, “Job evaluation is
systematic and orderly process of determining the worth of a job in relation
to other jobs”. According to Kimball & Kimbal, “Job evaluation is an effort
to determine the relative value of every job in a plant to determine what
the fair basic wage for such a job should be.” Objectives of Job Evaluation1)
To maintain complete and accurate description of each job or occupation.
2) To provide a standard procedure to determine the relative worth of each
job. 3) To ensure that fair wages is paid to all qualifies employees. 4) To
provide an accurate and fair consideration of all employees for
advancement and transfer. 5) To provide information for selection,
placement and training of employees. Factors in Job Evaluation – 1)
Training level or qualifications requirements 2) Knowledge and skills
requirements 3) Complexity of tasks 4) Interaction with various level of the
organization. 5) Problem solving and independent judgment 6)
Accountability and responsibility 7) Decision – making authority 8) Degree
of suppression required 9) Cross-training requirements 10)Working
conditions. 11)Degree of difficulty in filling job. Procedure of Job Evaluation
– 1) Job analysis – collection of data 2) Job description – to give the detailed
account of the job 3) Selection and preparation of job evaluation plan 4)
Job grading or classification 5) Pricing the jobs 6) Installation of programme
Principles of J.E. Programme – 1) Job should be rated not the job holder. 2)
Elements for rating should be easily explainable. 3) Elements should be
clearly defined and properly selected 4) Evaluation plan should be
communicated to workers and supervisors. 5) Foreman should participate
in the rating of the jobs in their own departments.

6) Cooperation should be achieved from workers. Methods of Job

Evaluation – A. Non-Quantitative Methods – a. Ranking Method: Under this
system, all the job are arranged or ranked in the order of importance from
the simplest to the hardest or in the reverse in, order each successive job
higher or lower than the previous one in the sequence. b. Job classification
or grading system: Job grading refers to the classification and analysis of
jobs which are performed in an organization and to their relative levels. The
jobs may be graded as skilled, unskilled, routine, administrative, shop jobs,
clerical jobs, sales jobs and so on. B. Quantitative Methods – a. Factors
comparison method: This method is an application of the person to person
system of merit rating to job evaluation. In fact, this method is a
combination of point method and rank method. The steps in this method
are as follows: i. Select key factors. ii. Select key jobs iii. Determine correct
rates of key jobs iv. Rank key jobs under each job factor v. Allocate the
correct rate of each key job among the job factor. vi. Evaluation all other
jobs in terms of these factors yardistics vii. Design, adjust and operate wage
structure b. Point-Method – This method is most widely used system of job
evaluation. It involves a more detailed advantages of job evaluations. i. Job
evaluation is a logical and objective method of ranking and grading jobs. ii.
Data or information generated during job evaluation can be used for
decisions related to selection placement, training transfer and promotion of
employees etc. iii. It is helpful in constructing an appropriate policy for
payments of wages which helps in attracting better works. iv. It helps to fit
the newly created jobs. v. Job evaluation also helps to redesign the jobs by
reallocating the easy and difficult tasks equally among various jobs.
Disadvantages – 1) Statutory and other factors 2) Highly subjective 3)
Cyclist effect 4) Promotes grievances 5) Conflict between worker and
management 6) Inflexibility 7) Require time and finance Merit Rating – MR
is the comparative evaluation and analysis of the individual merit of the
employees. It analyzes the differences in performance between employees
who are working on similar jobs and would therefore earn the same wages.
MR is also known as ‘performance appraisal’, ‘employee rating’, ‘efficiency
rating’, ‘performance evaluation’, ‘performance review’, ‘personnel rating’
or employee evaluation. Acc. To Scott, Clotheir and Spriegel: “Performance
appraisal (or merit rating) is the process of evaluating the employees
performance on the job in terms of requirements of the job.”
Characteristics of Merit Rating – 1) It is a means of self-control, judgement
and evaluating “Potentiality”. 2) Merit rating evaluates the relative merit of
workers. 3) It is a scientific study in which formal procedures and actual
data are used in this study. 4) Co-operation 5) Quality of work done 6)
Attendance and regularity 7) Education, skill, experience Objectives of
Merit rating – Merit rating has the following objectives – 1) To evaluate the
merit of an employee for the purpose of promotion, increment, reward and
other benefits. 2) To established and develop a wage system and incentive
scheme. 3) To determine the suitability of an employee for a particular job.
4) To analyze the merits (or demerits) of a worker and help him in
developing his capability and competence for the job. 5) Help in executive
decisions related to human resource department (HRD). 6) Appraisal of
workers. 7) Continuous record for the worth of a worker. 8) Tool for
decisions related to training, placement, promotion, confirmation,
increment, transfer and counseling of workers. 9) Useful for understanding
areas of improvement in a worker. 10)Helps in discovering special talents in
a worker. 11)Useful in personal research, validation of training objectives
and training methodology.
Example: 1. The ‘minimum wages Act’ prescribing minimum rates of wages.
2. The ‘payment of wages Act’ regulating payment of wages. 3. The
‘payment of Bonus Act’, “The Equal Remuneration Act” etc. have been
framed and brought into force. II. Methods of wage payment:- Different
methods or systems of wage payments are prevalent in different countries.
An organization usually adopts the following methods: 1. Time wage
system:-under this system, the time is made a basis for determining wages
of a person. The formulas used for calculating wages under this system are:
Earning = T x R Where T=Time Spent R=Rate of pay Merits 1. Simplicity. 2.
Sense of security. 3. Quality of product is more important. 4. Equitable from
of wage payment. 5. Trade unions accept this form of wage payment quite
willingly. Demerits 1. It does not provide any incentive to greater effort or
hard worker. 2. The superior workers are repressed under this system. 3. It
leads to a reduced quantum of work unless a strict and close supervision is
arranged. 4. Difficulty to determine labour cost. 5. Low production. II Piece
Wage Systems:- According to the piece rate system, a worker is paid for the
amount of work performed rather than on tie basis. The wages payable to a
worker under this system is calculated by the formula. Where. N, R N=
Number of units produced R= Wage rate per unit of product Merits: 1. It
helps in speediating production 2. In the case of excessive work, the ‘work
load’ can be distributed among other workers. 3. Less time consumption is
left. 4. Less supervision is required. 5. Employers are protected against lazy
and idlers through this system. 6. It avoids frequent industrial disputes.
Demerits 1. Payment under this system is irregular and uncertain for
workers point of view 2. During the periods of illness, or disability, the
worker is not paid any amount. 3. The system consumers enough time &
space. 4. Too much emphasis on the quantity of production may lower the
quality of products. 5. It becomes the source of grievances III Balance
method: This method is a combination of time wage and piece wage
methods. In this method a worker is paid a fixed wage based on the time
rate with a provision of piece wage method. This is just like minimum rent
with provision of short working recoupment in case of royalty. This method
is also known as debt method, if the wage calculated at piece rate exceed
time rate the worker gets credit. On the other hand, if time wages exceed
piece wages, the worker is paid time wage and the deficit is carried forward
as debt to be reconserved in future.
This method provides a sense of security to the employees. it is suitable in
industries, where the flow of work is minimum. But rates in this method
have to be fixed on the most scientific basis. Some of the modern
approaches to wage determination area. Skill based pay- in this system
employees are compensated for their job – related skills. This is also known
as knowledge based pay. b. Competency based pay: - Act the knowledge,
skills and behavior of an individual that contribute to a workers
performance is called competency. c. Broad handing:- this technique
reduce the number of salary levels into broad salary bends. These bends
normally, have a fixed minimum and maximum, which over plan with other
bands. types of piece Rate system: 1. Straight piece Rate:- in this method
one piece rate is fixed and whole production is paid basis. The rate of
payment remains the same irrespective of level of output. 2. Increasing
piece rate: - in this method different rates are fixed for different levels of
production. Higher rates are given when production increases beyond a
certain level. 3. Decreasing piece rate:- in this method the rate per unit
decreases with increase in output. Re 1 per unit may be allowed up to a
production of hundred units, 0.9p per unit for production between 101-
150 units, 0.85p per unit for an output beyond 150 units and so on This
method discourage workers from rising their output because netter efforts
are rewarded at lower piece rates. Meaning Wages: payment to labour
engaged directly in production is called wages. Salaries: Is the remuneration
for the quantum of services rendered by person whose our out is difficult to
be measured such as, remuneration paid to clerical or managerial or
supervisory staff. Types of wages1. Living wages- According to Justice
Higgins “ during wage is a wage sufficient to ensure the workman food,
shelter, clothing frugal comfort, provision for evil days etc. as regard for the
skill of an artisan if he is one”. 2. Minimum wages- Means the payment to a
workman which is first sufficient to cover the bare necessities of food,
shelter & clothing for himself and his family and to maintain his work
efficiency. Minimum wage in a country is fixed by the government in
consultation with business organization and trade unions. 3. Fair wage- A
fair wage is something more than the minimum wages. Fair wage is a mean
between the living wage & the minimum wage. The lower limit of fair wage
must obviously be the minimum wage. The fair wages depends upon the
following factors1. Minimum wages 2. Capacity of the industry to pay 3.
Prevailing rates of wages in the same similar occupation in the same or
neighboring localities. 4. productivity of labour 5. Level of national income
and its distribution 6. The place of the industry in the economy of the
country. Objectives- The wage and salary administration tries to achieve
following objectives1. To establish a fair remuneration 2. To attract
competent personnel. 3. To retain the present employees 4. To improve
productivity 5. To control costs 6. Job sequences and lines 7. To improve
union management relations 8. To improve public image of the company.
Factors Influencing wage & salary structure and Administration: A sound
wage policy must be adopted to establish a fair differential in wages based
upon differences in job.
contents. 1. Supply and Demand 2. Prevailing market rates 3. Organizations
capacity to pay 4. Productivity 5. Job requirements 6. Bargaining power of
trade union 7. Other factors. Principles of wage & salary Administration1.
There should be a definite plan for determination of wage & salary. 2.
Variation in wage rate should be justified according to job requirements. 3.
There should principle of equal pay for equal work. 4. The general level of
wages and salary should be according to the prevailing rates in market. 5.
Every worker should be well informed about his position his job
requirements and wage structure. 6. The wage should be sufficient enough
to ensure a reasonable standard of living. 7. There should be flexibility in
wage & salary structure. INCENTIVE COMPENSATION SYSTEM Meaning of
incentive Plans: Incentives are monetary benefits paid to workers in
recogritiori of their outstanding performance. According to the National
commission on labour “Wage incentives are extra financial motivation.
They are designed to stimulate human effort by rewarding the person over
and above the time rated remuneration for improvements in present or
targeted results. Objectives: Wages incentive scheme aim at the fulfillment
of following objectives. 1. To improve the profit of a firm through a
reduction in the unit costs of labour and materials or both. 2. To avoid or
minimize additional capital investment for the expansion of production
capacity. 3. To increase a worker’s earning without dragging the firm into a
higher wage rate structure regardless of productivity. 4. To use wage
incentives as a useful tool for securing a better utilization of manpower.
Characteristics 1. Minimum wages are guaranteed to all workers. 2. An
incentive plan may consist of both monetary and non monetary elements.
3. For successful incentives plan, the essentials are tinning, recuracy and
frequency of incentives. 4. The incentive plan requires that it should be
properly communicated to the workers to encourage individual
performance. Merits of the Incentive system:- 1. Incentive system is a
healthy way to strengthen the productive front of the industry. 2.
Employers as well as workers, both are at advantage. 3. Incentive system
reduces the burden of heavy supervisory costs. 4. It has been found that
the cases of absenteeism are comparatively lower than in other system of
wage payment. 5. It develops healthy industrial relations and reduces
chances of disputes between the workers and the employers. 6. Incentives
system provides better scope for developing human ingenuity. 7. Incentive
system develops the feeling co-operation among the workers. Demerits 1.
If there is no ceiling on incentive earnings, some workers may work
overtime and spoil their health. 2. For maximizing the output, quantity may
be scarified unless a strict check is maintained. 3. Once an incentive plan is
introduced, management may face still resistance from workers while
revising standards and rates due to changes in technology, methods,
machinery and materials. 4. Workers may disregard safely regulations in
orders to produce more.
5. Introduction and administration of incentive plans requires additional
cost and time of clerical staff. 6. Sometimes, production flow may be
disrupted due to the fault of management. In that case, workers, ay insist
on compensation. 7. Peer jealousy and conflicts may arise if some workers
earn more than other. Essential of a good Incentive Plan:- 1. Suitable
climate 2. Workers Participation 3. Simplicity 4. Just and Equitable 5.
Organization and method studies 6. Scientifically set standards. 7.
Minimum guaranteed wages. 8. No upper limit 9. Economical. 10. Stability
11. Comprehensive coverage 12. Conductive to workers health & welfare.
13. Prompt payment 14. Grievance Machinery 15. Follow up Types of
Incentive payments Organization can opt for an effective incentive plan
from the various alternatives available. 1. piece rate:- This incentive is given
to the employees based on the number of units produced. 2. Commission:
It is given to employees on a pre-established goal or criterion. 3. Bonuses:
Bonuses are given to employees on a pre-established goal or criterion. 4.
Merit Rises:-Merit rises are given on the basis of predetermined policies. 5.
Standard hour pay: - Provides incentives to employees based on the time
saved by them during the job course. 6. Maturity Curves:- Considers the
experience and performance of an employee for giving out the incentives.
7. Gain sharing: - Plans undertake those employees who give outstanding
performance and provide for cost saving measures. 8. Profit sharing: -
Incentive plans are practiced in retail and FMCG sectors. If refers to giving
out the share of profits, the organization earned to all the employees.
PERQUISITES The term “perquisites” is often colloquially to refer to those
benefits of a more discretionary nature. Perquisites are also called ‘perk’.
These are those benefits that are provided to executives above and beyond
the benefits provided to all other employees. Generally executive
perquisites include office space, parking \, cell phones, annual medical
checking, company car, club membership, first class air travel, employment
contracts, legal and financial services, change in control agreements,
special. List of perquisites 1. Employment contracts 2. Retirement plans 3.
Control-agreements: Change-in-control agreement also known as “Golden
Parachutes”, provide the executive with protection against the risk of losing
their employment if the company is acquired. 4. Life-insurance plans:
Companies offer executive additional life insurance coverage as a
perquisite, beyond the company group plan. 5. relocation packages.
6. make whole or leave behind payments 7. leave travel concession (LIC) 8.
Free medical facilities etc.

7. Administration of Employee Welfare

Employee welfare is related to well-being of the employee. It is a
comprehensive term which includes various services, benefits and facilities
offered to employees. According to the committee on labour Welfare
(1969) “such services, facilities and amenities as adequate canteen, rest
and recreation facilities. Sanitary and from work and for the
accommodation of workers employed at a distance from their homes and
such other services, amenities and facilities, including social security
measures as contribute to improve the conditions under which workers are
employed. labour welfare has two aspects negative and positive. On the
negative side, labour welfare is concerned with counteracting the baneful
effects of the large-scale industrial system of production- especially
capitalistic, as far as India is concerned. On its positive side, it deals with the
provision of opportunities for the worker and his/her family for good life.
Administration of welfare involves decision on i. Welfare policy ii.
Organization of welfare iii. Assessment of effectiveness Characteristics of
Employee Welfare1. Comprehensive Term 2. Dynamic Concept 3. Origin 4.
Accepted as social right & Responsibility 5. Additional benefit 6. Provided
by Various Agencies 7. Part of Social Welfare 8. Both Voluntary and
Statutory 9. Individual and Group Services Importance of Employee
WelfareIt safeguards individual economy and has great impact and
influence on industries development. 1. removal of negative Effects 2.
Improve Family life 3. In the interest of larger society 4. Improve morale,
loyalty and productivity 5. Improve physical and mental health 6. Improve
hiring process 7. Help remove social evils 8. Establishes industrial peace 9.
Raise goodwill 10. Voluntary efforts reduce the threat of further Govt.
Intervention. Types of Welfare Facilities 1. Conditions and comforts of work
environment 2. Conveniences 3. Health services 4. Women and child
welfare 5. Recreation 6. Economic services 7. Domestic and employment
guidance 8. Worker’s education
9. Labour-management joint programmes services to elderly and retires
employees 10. Services to elderly and retired employees A part from these
there is many more which are known as (Extramural facilities). Mentioned
below1. Housing 2. Waste disposal 3. Banks, transport, schools, post office
4. Health and Medical services 5. Recreation games, clubs 6. Watch & ward:
Security 7. Community Leadership development 8. Co-operative, consumer
& credit societies 9. Leave travel. holiday homes, vocational training Safety
Industrial safety or employee safety refers to the protection or workers
from the danger of health hazards caused by poorly maintained equipment,
unsafe machinery, exposure to hazardous chemicals and other potential
injuries which include loss of hearing eye sight. Types of safety & Health
Hazards1. Injuries 2. Equipment Hazards 3. Fire Hazards 4. Chemical
Hazards 5. Biographical Hazards 6. Environment Hazards 7. Atmospheric
Hazards 8. Physiological Hazards 9. Occupational Hazards Need &
Importance of Safety 1. Altruism 2. Injuries & illness 3. Savings 4. Penalties
& fines 5. Moral obligation 6. Promote well-being 7. To reduce accidents 8.
To promote teamwork 9. To promote productively & quality of work 10. To
increase the concentration and confidence of employees. Essential Pre-
requisites of a Grievance Procedure a) Conformity with statutory provisions
b) Unambiguity c) Simplicity d) Promptness in handling the grievance e)
Training the supervisors and union representatives f) Follow up for making
necessary changes from time to time for improved working. Steps in
Grievance Procedure a) Identification of grievance by the management b)
Management should define the problem properly and accurately after
identification c) Data collection should be complete by all the parties d)
Analysis and solution to the problems should be developed e) Prompt
Redressal f) Implementation and follow up should be fast.
Safety provisions under the factories act The factories act, 1948 lays down
the following safety provisions1. Fencing of machinery 2. Work on or near
machinery in motion (Sec 22) 3. Prohibiting young person’s on dangerous
machine (Sec 23) 4. Striking gear and devices for cutting off power (Sec 24)
5. Self-acting machines (Sec 25) 6. Casing of new machinery (Sec 26) 7.
Prohibiting women and children near cotton openers (Sec 27) 8. Hoist and
lifts (Sec 28) 9. Lifting machines, chains and ropes (Sec 29) 10. Revolving
Machinery (Sec 30 and so on). Key Principles of a Total safety Culture1. All
employees should be given through training in safety methods 2. Safety
should be internally, not externally, driven 3. Don’t count on common
sense for safety improvement 4. Safety incentive programmes should focus
on process rather than outcomes 5. On-the-job observation and
interpersonal feedback are key to total safety culture 6. Behavior is directly
by activators and motivated by consequences. HR Grievance Every
employee has certain expectations which he thinks must be fulfilled by the
organization he is working for. When an employee feels that something is
unfair in the organization, he is said to have a grievance. According to Jucius
: A Grievance is “any discontent or dissatisfaction, whether valid or not,
arising out of anything connected with the company which an employee
thinks, believes or even feels to be unfair, unjust or inequitable.” Features:
A) A grievance refers to any form of discontent dissatisfaction with any
aspact of the organization. B) The dissatisfaction must arise out of
employment and not due to personal or family problems. C) The discontent
may arise out of real or imaginary reasons. D) The discontent may be voiced
or unvoiced. But it must find expression in some form. Forms of Grievances:
A grievance may take any one of the following forms a) Factual: A factual
grievance arise when legitimate needs of employees remain unfulfilled e.g.
Wage hike has been agreed but not implemented citing various reasons. b)
Imaginary: When an employee’s dissatisfaction is not because of any valid
reason but because of a wrong protection, wrong attitude or wrong
information he has. c) Disguised: When an employee may have
dissatisfaction for reasons that are unknown to him.

Causes: Grievance may occur for a number of reasons: a) Economic: Wage

fixation, overtime, bonus, wage revision etc. b) Work environment: Poor
physical conditions of workplace, tight production norms, defective tools
and equipment, poor quality of material, unfair rules, lack of recognition
etc. c) Supervision: Relates to the attitudes of the supervisor towards the
employee. d) Work group: Employee is unable to adjust with his colleagues;
suffers from feelings of neglect, humiliation etc. e) Miscellaneous: There
include issues relating to certain violations in respect of promotions, safety
methods, transfer, disciplinary rules, fines, granting leave, medical facilities
etc.
Effects: Grievance, if not indentified and redressed , may adversely affect
woekers, managers and the organizations as a whole. The effects are: A) On
production include:  Low quality of production.  Low quality of production
and productivity.  Increase in the wastage of material, spoilage of
machinery.  Increase in the cost of production per unit. B) On the
employees:  Increases the rate of absenteeism and turnover.  Reduces
the level of commitment, sincerity and punctuality.  Increase the incidence
of accidents.  Educes the level of employee morale. C) On the managers: 
Strains the superior-subordinate relations.  Increase the degree of
supervision, control and follow up.  Increases in indiscipline cases. 
Increase in unrest and thereby machinery to maintain industrial place.
Need for a Grievance handling procedure: a) The management can know
the employee’s feelings and opinions about the company’s policies and
practices. b) The employee gets a chance to ventilate his feelings through
grievance handling procedure. c) It keeps a check on the supervisor’s
attitude and behavior towards their subordinates. d) The morale of the
employees will be high with the existence of proper grievance handling
procedure. Solutions to Grievance: 1) Observation: done by manager. 2)
Grievance procedure; should be systematic in order to highlight employee
dissatisfaction at various levels. 3) Grip boxes: by placing complaint boxes in
the factory or working places. 4) Open door policy: i.e. a walk-in-meeting
with the manager, to express employee feelings openly. 5) Exit interview: it
is conducted in order to find the real reason for employee leaving the job.
6) Opinion surveys: Surveys may be conducted periodically to elicit the
opinions of employees about the organization and its policies. Fringe
Benefits Employees are paid several benefits in addition to wages, salary,
allowances and bonus. These benefits and services are called ‘fringe
benefits’ because these are offered by the employer as a fringe. Employees
of the organization are provided several benefits and services by the
employer to maintain and promote employee’s favorable attitude towards
the work and work environment. It not only increases their morale but also
motivate them. These provided benefits and services forms the part of
salary and are generally refereed as fringe benefits. According to D.
Belcher, “ Fringe benefits are any wage cost not directly connected with the
employees productive effort, performance, service or sacrifice”. According
to Werther and Davis, “Fringe embrace a broad range of benefits and
services that employees receive as part of their total compensation,
packagepay or direct compensation and is based on critical job factors and
performance”. According to Cockman, “ Employee benefits are those
benefits which are supplied by an employer to or
for the benefits of an employee and which are not in the form of wages,
salaries and time rated payments”. These are indirect compensation as they
are extended condition of employment and are not related to performance
directly. Kinds of Fringe Benefits The various organizations in India offers
fringe benefits that may be categorized as follows: 1) Old Age and
Retirement Benefits - these include provident fund schemes, pension
schemes, gratuity and medical benefits which are provided to employee
after their retirement and during old age as a sense of security about their
old age. 2) Workman’s Compensation - these benefits are provided to
employee if they are got ignored or die under the working conditions and
the sole responsibility is of the employer. 3) Employee Security- Regular
wage and salary is given to employee that gives a feeling of security. Other
than this compensation is also given if there is lay-off or retrenchment in an
organization. 4) Payment for Time Not Worked – Under this category of
benefits, a worker is provided payment for the work that has been
performed by him during holidays and also for the work done during odd
shifts. Compensatory holidays for the same number in the same month are
given if the worker has not availed weekly holidays. 5) Safety and Health –
Under this benefit workers are provided conditions and requirements
regarding working condition with a view to provide safe working
environment. Safety and Health measures are also taken care of in order to
protect the employees against unhealthy working conditions and accidents.
6) Health Benefits – Employees are also provided medical services like
hospital facility, clinical facility by the organization.