Human Resource Management

 FEDRAL TURISM TRAINING INSTITUTE

 Course Title: Human resource Management (HRM)
 Course Outline
 Course Number: MGMT 2081
 Course Objectives

 At the end of this course student will be able to:

 Gain an insight about the operative functions of personnel management Understand the
importance and significance of human resource as an asset acquire a broader perspective
on managing human resource effectively.
 equip students with a realistic over view of major principles and techniques of human
resource management system
 understand the dynamic nature and applications of human resource management in
business and other organizations
 make students be aware of the environmental influence experiencing human resource and
how to deal with these factors
 have a clear understanding of human resource handling mechanism
Course Description/Course Contents
Human Resource management belongs to all organizations. Its focal point is people; people are
the life blood of organizations. It emphasizes on: human resources planning and development,
recruitment, selection of personnel, induction, placement, training and development; techniques
of performance appraisal; wage and salary administration and /or the human factor in work
design & compensation plans & incentive schemes; morale and motivation; discipline;
maintenance and safety; industrial relations; collective bargaining; grievances and grievance
handling. It also focuses on newly emerging issues of Human resource like diversity and its
management, empowerment, HIV AIDS and the workplace.
Unit1. AN OVER VIEW
1.1. Definition and back ground
1.2. Importance of Human resource management
1.3. Evolution and Development
1.4. Human Resource management objectives

COMPILED BY: SHIMELIS D. 1

 Human Resource Management

UNIT 2 - HUMAN RESOURCE MANAGEMENT ENVIRONMENTS

2.1. The external environment
2.2. The internal environment
2.3. Human resource management model
UNIT 3 - JOB ANALYSIS & HR PLANNING
3.1. Meaning and definition of job analysis
3.2. Steps in job analysis
3.3. Methods of collecting job analysis information
3.4. Importance of job analysis information
3.5. Potential problems with job analysis
3.6. Meaning and definition of Human resource planning
3.7. Importance of human resource planning
3.8. Steps [procedures] in human resource planning
3.9. Factors affecting human resource planning
UNIT 4 - RECRUITMENT & SELECTION
4.1. Employee Recruiting
4.1.1. Features of recruitment
4.1.2. Purpose of recruitment
4.1.3. Factors governing recruitment
4.1.4. Sources and methods of recruitment
4.2. Employee Selection
4.2.1. Selection criteria
4.2.2. The selection processes
4.2.3. Factors governing selection
4.3. Orientation [induction]
4.3.1. Purpose of orientation
4.3.2. Levels of orientation
UNIT 5. TRAINING AND DEVELOPMENT
5.1. Objectives of training and development
5.2. Process of training and development
5.3. Training methods
5.4. Career development

UNIT 6. PERFORMANCE APPRAISAL

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6.1. Purpose of performance appraisal

6.2. Performance appraisal steps
6.3. Problems associated with performance appraisals
6.4. Performance appraisals methods

CHAPTER 7 – COMPENSATION

7.1. Importance of compensation

7.2. Factors affecting compensation
7.3. Employee benefits and service
7.4. Comparable worth controversy (Reading assignment)

CHAPTER 8 : INTEGRATION AND MAINTAINACE

8.1. Employee discipline
8.2. Labor relation
8.3. Collective bargaining
8.4. Grievance handling

CHAPTER NINE: PROMOTIONS TRANSFERS AND SEPARATION

9.1. Purpose of transfer

9.2. Types of promotion
9.3. Reason for transfer
9.4. Types of transfer
9.5. Types of separation

CHAPTER TEN - SEXUAL HARASSMENT IN WORK PLACE, E- HUMAN

RESOURCE MANAGEMENT &EMPOWEREMENT

10.1. Equal employment opportunity

10.2. Types of sexual harassment in work place
10.3. Prevalence of sexual harassment
10.4. Effects of sexual harassment
10.5. Remedies
10.6. Tips on E- Human resource management
10.7. Workforce Diversity management
10.8. HIV and Workplace
10.9. Workforce Empowerment

Text:

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 Human Resource Management

Wayne F. (2011), Managing Human Resources: productivity, quality of work life and
profit, McGraw-Hill USA.

DeCenzo, D. A., & Robbins, S. P. (2007). Fundamentals of Human Resource

Management. 9thed. John Wiley & Sons, Inc.

Reference:

 John. [Link], Human Resource Management, 7th ed., 1998

 Dessler : Human Resource Management , 9th ed.1998
 [Link] Management,1998
 [Link] and [Link]: Human Resource Management,1997
 MargaretAttwood and Stuart Dim Mock : Personnel management ,1999
 Margaret Foot CarolineHook : Introducing Human Resource Management 1998
 [Link]: Human Resource Management,1996
 ShaunTyson and Alfordyork, An introduction to Human resource Management 1st ed,
2001

Assessment Arrangement

Activities Points
Quiz I 10
Quiz II 10
Quiz III 10
Assignments 20
Final Exam 50
Total Points 100

UNIT1. AN OVER VIEW

1.1. Definition and Back ground

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Human resource management (HRM) is the practice of recruiting, hiring, deploying and
managing an organization's employees. HRM is often referred to simply as human resources
(HR). A company or organization's HR department is usually responsible for creating, putting
into effect and overseeing policies governing workers and the relationship of the organization
with its employees.
The term human resources was first used in the early 1900s, and then more widely in the 1960s,
to describe the people who work for the organization, in aggregate.
HRM is employee management with an emphasis on those employees as assets of the business.
In this context, employees are sometimes referred to as human capital. As with other business
assets, the goal is to make effective use of employees, reducing risk and maximizing return on
investment (ROI).
The modern HR technology term human capital management (HCM)) has been used more
frequently compared to the term HRM. The term HCM has had widespread adoption by large
and midsize companies and other organizations of software to manage many HR functions.
1.2. Importance of Human Resource Management
The role of HRM practices is to manage the people within a workplace to achieve the
organization's mission and reinforce the culture. When done effectively, HR managers can help
recruit new professionals who have skills necessary to further the company's goals as well as aid
with the training and development of current employees to meet objectives.
A company is only as good as its employees, making HRM a crucial part of maintaining or
improving the health of the business. Additionally, HR managers can monitor the state of the job
market to help the organization stay competitive. This could include making sure compensation
and benefits are fair, events are planned to keep employees from burning out and job roles are
adapted based on the market.
How does HRM work?
Human resources management works through dedicated HR professionals, who are responsible
for the day-to-day execution of HR-related functions. Typically, human resources will comprise
an entire department within each organization. HR departments across different organizations
can vary in size, structure and nature of their individual positions.
1.3. Evolution and Development of Human Resource Management (HRM)

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In fact, the seed of HRM were sown during the industrial revolution 1850s in Western Europe
and USA. The wind gradually reached to India as well in the beginning of twentieth century.
Since then to the present era, the development of HRM may be classified as follows:
i) Trade Union Movement Era:
The conditions of workers in the aftermath of factory system as an outcome of industrial
revolution were very pathetic. The First World War further worsened their conditions. This was
the period when state intervention to protect the worker s interest was felt necessary.
The Royal Commission of Labour in India (1911) under the chairmanship of J H, Whitley
recommended the abolision of the ‘jobber’ system and the appointment of labour officers in
industrial enterprise to perform the recruitment function as well as to settle the worker’s
grievances. Also, workers started forming their associations which was subsequently known as
‘trade unions’ to improve their lots.
The basic philosophy underlying trade unionism was to safeguard the worker’s interest and to
sort out of their problems such as use of child labour, long hours of work and poor working
conditions. These unions used strikes, slowdowns walkouts picketing, boycotts, and sabotage as
weapons for the acceptance of their problems.
These activities of trade unions gave rises to personnel practices such as collective bargaining,
grievance handling system, arbitration, disciplinary practices, employee benefit programmes, and
installation of rational and defensible wage structures.
ii) Social Responsibility Era:
In the starting decade of 20 th century, some factory owners/employers started showing
humanistic approach towards the workers. Robert Owen, a British industrialist towards workers
viewed that the principal social and economic environments influence the physical mental and
psychological development of workers. Therefore, in order to improve the productivity, it is
necessary to improve, conditions of employees by removing them from an adverse environment
or by changing the environment with the provisions of more satisfactory living and working
conditions.
The philosophy underlying in Owen’s patristic approach was that worker’ is just like a child and
owner is just like a father. Therefore, the owner should take care of a worker just like a father
takes care of his child.

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Accordingly, Owen himself implemented this philosophy in his cotton mill at Scotland by
introducing facilities such as shower baths and toilets in the factory premises, model villages for
workers, raising minimum wage of employment of child labour to 11 years and reducing
working hours from 12 to 10 hours.
Owen also appealed to other industrialists to introduce the similar facilities in their factories.
However, some critics view that, in the event of increasing trade unionism in factories, factory
owners adopted these facilities to control over the labour problems and unrest. According to
them, adoption of such practices was a compulsion for factory owners rather than their
paternistic philosophy.
iii) Scientific Management Era:
The concept of scientific management was introduced by Fredrick Winslow Taylor’ in the USA
early in the 20th century as an alternative to the prevailing system of management by initiative
and incentive.
Based on his shop floor job experience, Taylor developed four principles of scientific
management:
1. Development and use of scientific methods in setting work standards, determining a fair day’s
work, and best way of doing work.
2. Scientific selection and placement of workers best suited to perform the various tasks and
provision of their training and development for maximum efficiency.
3. Clear cut division of work and responsibility between management and workers.
4. Harmonious relations and close cooperation with workers to secure performance of work in
accordance with the planned jobs and tasks.
In his scientific theory, Taylor viewed man/worker as one driven by fear of hunger and search
for profit. Accordingly, if economic reward is tied up with the efforts put on the job, the worker
will respond with his maximum physical capability.
Taylor’s study is limited to the physical characteristics of the human body as it responds to
routine and to clearly defined jobs.
He visualized man functioning as an “appendage to the industrial machine”. Realizing that with
physical efforts, human body can get tired and thus, can affect worker’s performance both in
quantity and quality, Taylor developed several techniques to introduce his scientific ideas in
management.

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The following are the important techniques developed by him:

1. Time study to analyze and measure the time taken in doing the various elements of a job and
to standardize the operations of a job.
2. Motion study involving close observation of the movements required to perform a job with a
view to eliminate wasteful motions and decide on the best way of doing the job.
3. Standardization of tools, equipment’s and machinery and working conditions.
4. Incentive wage plan with differential piece rate of wages for efficient and inefficient
workmen.
The main contribution of Taylor to management was it led to professionalization of management
and human engineering. However, some critics criticize his views on the ground that its focus
was more on technology and not on human factor in industry.
iv) Human Relations Era:
By 1920, it was felt that earlier approaches to human resource management were incomplete as
these did not recognize workers as human beings having their feelings, attitudes and needs. It
was between 1925 and 1935; many experts expressed their opinions towards the human aspects
of organizational activities.
A psychologist namely Hugo Munsterberg in his book “Psychology and Industrial Efficiency”
suggested the use of psychology in selection, placement, testing and training of employees in an
organization. Elton Mayo and his associates conducted a series of experiments from 1924 to
1932 at the Hawthorne plant of the Western Electric company in the USA.
The main findings of the Hawthorne Experiments were as follows:
1. Physical environment at the work place do not have any material impact on the efficiency of
work.
2. Favourable attitudes of workers and work-team towards their work were more important
factors determining efficiency.
3. Fulfillment of the worker’s social and psychological needs had a beneficial impact on the
morale and efficiency of workmen.
4. Employee groups based on social interactions and common interests exercised a strong
influence on worker’s performance.
5. Workers cannot be motivated solely by economic rewards. More important motivators are job
security, recognition, right to express their opinion on matters related to them.

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Based on these findings, the researchers developed a human relations approach to HRM. It was
based on the view that the modern organization is a social system in which the social
environment and inter-personal relations govern the behaviour of employees.
The relationship between the superiors and subordinates should relate to the social and
psychological satisfaction of the employees. In ultimate sense, the objective of human relations
approach was to make employees productive and it was realized that employees’ satisfaction is
the best means of making the employee productive.
v) Behavioural Science Era:
We have just seen that human relations era assumes that a happy worker is a productive worker.
As a corollary to this, the behavioural science era assumes human behavior as a means to achieve
efficiency in performance.
Behavioral approach to HRM is based on the findings of intensive research carried out by
behavioral scientists belonging to the disciplines of sociology, social psychology, anthropology
and management experts.
The major contributions made by the behavioral scientists are in the areas of motivation,
leadership, communication, organizational change and development, organizational culture, and
individual and group dynamics
On the whole, behavioural science approach of HRM was concerned with the social and
psychological aspects of human behaviour in organizations.
Some of the important elements of the behavioural approach of HRM are outlined below:
1. Individual behaviour is linked with the group behaviour. For example, a person be inclined to
resist to change has behaviour as an individual. But, he/ she will readily do so if the group to
which he/ she belongs, decides to change its behaviour.
2. Informal leadership rather than the formal leadership of manager is more effective in
influencing people to achieve standards of performance. From this viewpoint, democratic leader-
ship style of the manager is more acceptable to the subordinates and hence, more effective.
3. By nature, people like to work. Most people enjoy work and are motivated by self- control and
self-development. In fact, job itself is a source of motivation and satisfaction to employee.
4. Expanding subordinate influence, self- control and self- direction can improve operating
efficiency.
Systems Approach Era:

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A system may be defined as a set of interdependent parts forming an organized unit or entity.
The system is defined as “an organized and complex whole: an assemblage or combination of
things or parts forming a complex unitary whole.” The parts, also known as subsystems, interact
with each other and are subject to change. These sub-systems are inter-related and
interdependent.
Any working organization usually consists of the following three broad sub-systems:
1. Technical Sub-system, i.e., formal relationships among the members of an organization.
2. Social Sub- system, i.e., social satisfaction to the members through informal group relations.
3. Power Sub-system, i.e., exercises of power or influence by individual or group.
The interaction of the various sub-system forms the total system. There is also interaction
between total system/sub-systems and environment. Environment itself may influence or be
influenced by the system or sub-system.
The system approach is characterized by the following features:
1. A system is a group of inter-related elements which are separate entities/units.
2. All the elements are inter-related in an orderly manner.
3. There is the need for proper and timely communication to facilitate interaction.
4. The interaction between the elements should lead to achieve some common goal.
Let us also see how the system works. Activities relating to procuring and transforming inputs
into outputs are viewed as enterprise operations. Materials, information and energy that flow into
the organization are inputs and products and services offered by an organization are outputs.
The organization through its operations transforms inputs into output. Men, money and managers
become the part of system. Sale of outputs provides energy called ‘feedback’ to repeat the
system. Thus, the system goes on and on as shown in Figure 2.1.

At the heart of the systems approach lays a management Information System (MIS) and

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communication network for collection, analysis, and flow of information to facilitate the
functions of planning and control. Modem thinkers consider HRM as a system that integrates
activities with an objective to make the best use of resources which are always scarce.
Contingency Approach Era:
Contingency refers to die immediate circumstances. Contingency approach believes that there is
no one way of managing that works best in all situations. According to this approach, the best
way to manage varies with the situation. Hence, this approach is also called ‘situational
approach’.
There may not be one universal way of managing in all situations. A particular approach may
yield fruitful results in one situation but may drastically fail in other situations. Therefore, it is
imperative for managers to analyze different situations and then use the best approach best
suitable in that particular situation.
In short, contingency approach of management and HRM emphasizes on two points:
1. It focuses attention on situational factors that influence managerial decision.
2. It highlights the need for developing skills for managers in situational analysis.
Ideas like contingency were also expressed by Mary Parker Follett (1865-1933) way back during
1920s. She was greatly interested in social work and had a gift for relating individual experience
to general principles.
Her concept of the Law of the Situation referred to the necessity of acting in accordance with the
specific requirements of a given situation.
She noted that these requirements were constantly changing and needed continued efforts to
maintain effective working relationship F.W. Taylor also emphasized the importance of choosing
the general type of management best suited to a particular case.
Similarly Henry Fayol emphasized the point that there is nothing rigid or obsolete in
management efforts. Thus, it is clear that contingency approach is not new, but h has been
expanded in the modem times.
 This is the modem recent approach in management and for that matter in HRM as well.
HRM has a humble beginning in India in 1920s. By now, this concept has blossomed into
a matured subject and profession.

1.4. Human Resource management objectives

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 The objectives of HRM can be broken down into four broad categories:

1. Societal objectives: Measures put into place that responds to the ethical and social needs
or challenges of the company and its employees. This includes legal issues such as equal
opportunity and equal pay for equal work.
2. Organizational objectives: Actions taken that help to ensure the efficiency of the
organization. This includes providing training, hiring the right number of employees for a
given task or maintaining high employee retention rates.
3. Functional objectives: Guidelines used to keep HR functioning properly within the
organization as a whole. This includes making sure that all of HR's resources are being
allocated to their full potential.
4. Personal objectives: Resources used to support the personal goals of each employee.
This includes offering the opportunity for education or career development as well as
maintaining employee satisfaction.

 Within the unit of each organization, the objectives of HRM are to:
 Help to achieve goals by providing and maintaining productive employees.
 Efficiently make use of the skills and abilities of each employee.
 Make sure employees have or receive the proper training.
 Build and maintain a positive employee experience with high satisfaction and quality
of life, so that employees can contribute their best efforts to their work.
 Effectively communicate relevant company policies, procedures, rules and regulations
to employees.
 Maintaining ethical, legal and socially responsible policies and behaviors in the
workplace.
 Effectively manage change to external factors that may affect employees within the
organization.

Unit 2 – Human Resource Management Environments

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Environment comprises all those forces which have their bearing on the functioning of various
activities including human resource activities. Environment scanning helps HR manger become
proactive to the environment which is characterized by change and intense competition. Human
resource management is performed in two types of environments- external and internal.
2.1 The External Environment:
External environment includes forces like economic, political, technological, demographic etc.
these exert considerable influence on HRM. Each of these external forces is examined here.
Economic: Economic forces include growth rate and strategy, industrial production, national and
per capita incomes, money and capital markets, competitions, industrial labour and globalization.
All these forces have significant influence on wage and salary levels. Growing unemployment
and reservation in employment also affect the choice for recruitment and selection of employees.
Political: Political environment covers the impact of political institutions on HRM practices. For
example, democratic political system increases the expectations of workers for their well-being.
The total political environment is composed of three institutions:
1. Legislature: This is called Parliament at the central level and Assembly at the state level A
plethora of labour laws are enacted by the legislature to regulate working conditions and
employment relations.
2. Executive: It is the Government that implements the law. In other words, the legislature
decides and the executive acts.
3. Judiciary: This is like a watchdog above the two. It ensures that both the legislature and the
executive work within the confines of the constitution and also in the overall interest of the
people. These affect, in one way or the other, all HR activities from planning to placement to
training to retention and maintenance.
Technological: Technology is a systematic application of organized knowledge to practical
tasks. Technological advances affect the HR functions in more than one way:
First; technology makes the job more intellectual or upgraded.
Second, it renders workers dislocated if they do not equip themselves to the job.
Third, job becomes challenging for the employees who cope with the requirements of technology
Fourth, technology reduces human interaction at the work place. Finally job-holders become
highly professionalized and knowledgeable in the job they perform.
Demographic: Demographic variables include sex, age, literacy, mobility, etc. Modem work

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force is characterized by literate, women and scheduled caste and scheduled tides workers. Now,
workers are called knowledge workers’ and the organizations wherein they work are called
‘knowledge organizations’. As such, the traditional line of distinction between manual and non-
manual workers is getting blurred. Employees are demanding parity in remuneration and
responsibility among various categories and levels of employees.
2.2 The Internal Environment
These are the forces internal to an organization. Internal forces have profound influence on HR
functions. The internal environment of HRM consists of unions, organizational culture and
conflict, professional bodies, organizational objectives, polices, etc.
Unions: Trade unions are formed to safeguard the interest of its members/workers. HR activities
like recruitment, selection, training, compensation, industrial relations and separations are carried
out in consultation with trade union leaders.
Organizational Culture and Conflict: As individuals have personality, organizations have
cultures. Each organization has its own culture that distinguishes one organization from another.
Culture may be understood as sharing of core values or beliefs by employees.
HR practices need to be implemented that best fit the organization’s culture. There is often
conflict between organizational culture and employee’s attitude. Conflict usually occurs because
of dualities such as:
 personal goal vs. organizational goal,
 discipline vs. autonomy,
 rights vs. duties, etc.
Such conflicts have their bearings on HR activities in an organization.
Professional Bodies: Like other professional bodies, the HR professional body regulates the
functions of HR practitioners.
Organizational objectives: These are medium and short-term aims that a company pursues to
accomplish its long-term goals. These objectives allow a company to evaluate its performance,
business strategy, and productivity levels.
Policies: A policy is a set of general guidelines that outline the organization's plan for tackling an
issue. Policies communicate the connection between the organization's vision and values and its
day-to-day operations. A procedure explains a specific action plan for carrying out a policy.
2.3. Human resource management models

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Four major models have been identified for human resource management and all these serve
many purposes.
1. They provide an analytical framework for studying Human resource management (for
example, situational factors, stakeholders, strategic choice levels, competence)
2. They legitimize certain HRM practices; a key issue here is the distinctiveness of HRM
practices: “It is not the presence of selection or training but a distinctive approach to selection or
training that matters”.
3. They provide a characterization of human resource management that establishes variables and
relationships to be researched.
4. They serve as a heuristic (experiential/ empirical) device-something to help us discover and
understand the world for explaining the nature and significance of key HR practices.
The four HRM models are:
(i) The Fombrun,
(ii) The Harvard,
(iii) The Guest, and
(iv) The Warwick.
The Fombrun, Tichy and Devanna Model
Being the first model (dates back to 1984), this emphasizes just four functions and their
interrelatedness. The four functions are selection, appraisal, development, and rewards. These
four constituent components of HRM and are expected to contribute to organizational
effectiveness. The Fombrun model is incomplete as it focuses on only four functions of HRM
and ignores all environmental and contingency factors that impact HR functions.
The Harvard Model
The Harvard model claims to be comprehensive in as much as it seeks to comprise six critical
components of HRM. The dimensions included in the model are stakeholders, interests,
situational factors, HRM policy choices, HR outcomes, long-term consequences, and a feedback
loop through. The outputs flow directly into the organization and the stakeholders
The Harvard HRM model is considered one of the most influential 'soft HRM' approaches due to
its focus on people rather than outcomes. The Harvard HRM model seeks to provide an optimal
context for people to do their best work.
The Guest Model

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Yet another human resource management model was developed by David Guest in 1997 and
claims to be much superior to other models. The details will justify the claim. This model claims
that the HR manager has specific strategies to begin with, which demand certain practices and
when executed, will result in outcomes. These outcomes include behavioral, performance-
related, and financial rewards.
The model emphasizes the logical sequence of six components: HR strategy, HR practices, HR
outcomes, behavioral outcomes, performance results, and financial consequences. Looking
inversely, financial results depend on employee performance, which in turn is the result of
action-oriented employee behaviors.
Behavioral outcomes are the result of employee commitment, quality, and flexibility, which, in
turn, are impacted by HR practices. HR practices need to be in tune with HR strategies which are
invariably aligned with organizational strategies.
The claim of the Guest model that it is superior to others is partly justified in the sense that it
clearly maps out the field of HRM and delineates the inputs and outcomes. But the dynamics of
people management are so complex that no model (including the Guest model) can capture them
comprehensively.
The Warwick Model
This model was developed by two researchers, Hendry and Pettigrew of the University of
Warwick (hence the name Warwick model). Like other human resource management models, the
Warwick proposition centers around five elements
 Outer context (macro-environmental forces)
 Inner context (firm-specific or micro environmental forces)
 Business strategy content
 HRM context
 HRM content
The Warwick model takes cognizance of business strategy and HR practices (as in the Guest
model), the external and internal context (unlike the Guest model) in which these activities take
place, and the process by which such changes take place, including interactions between changes
in both context and content. The strength of the model is that it identifies and classifies important
environmental influences on HRM.
UNIT 3 - JOB ANALYSIS & HR PLANNING

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A Job can be described as a group of tasks which is assigned to the individual employees for
ensuring achievement of the organizational goals. When this job is analyzed in terms of
determination of the skills, duties and knowledge required for completion of tasks, it is regarded
as Job analysis. In the words of Geisler (2006), the entire process of Human Resource Planning
essentially involves four crucial aspects in it:
 Forecasting of Manpower requirements
 Formulating Policies
 Implementing Policies Effectively, and
 Controlling or Monitoring the Policies for ensuring that the right kind of people in right
numbers, are selected for the right position and in right time.
A sound HRP process in an organization must be strategically aligned with the overall corporate
strategy and essentially depends on the availability of a robust HRIS for making accurate
projections regarding the manpower requirements and availability of information readily
regarding crucial HR parameters.
3.1. Meaning and definition of job analysis
Job analysis involves gathering information and analysis of information of crucial information
about a job. In this analysis judgements are made on the data collected of a job. Job Analysis
involves both Job Description and Job Specification, which includes an assessment of the nature
of the job as well as the knowledge, skills and attitude of the jobholder. In other words, Job
description provides details regarding the content of the job in a written format and Job
specification is a written record of the qualities and qualifications which a jobholder should have
for handling a job.

Human Resources planning: can be described as a process of determining the manpower

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requirements of an organization which should be aligned with the strategic goals of the
organization. According to E.W. Vetter, human resource planning is “the process by which a
management determines how an organization should make from its current manpower position to
its desired manpower position”. Some of the features are:
 Well defined objectives of human resource planning.
 Human resource plan needs of the organization.
 Manpower planning in advance.
 Creating proper work environment.
Planning is the first step for determining the success of any strategic initiative and ensuring
achievement of pre-defined goals as it establishes a road map for realization of several action
plans. Effective planning begins with information gathering, defining or establishing objectives
and implementing sound decisions for ensuring achievement of organizational goals. HR
Planning answers the following questions of number of employees in the organization, skills and
knowledge of the employees a company possesses, proper utilization of the resources and
motivational tools required for the employees.
Human Resources Practitioners who plan HR program assist the organization to manage its
employees strategically by facilitating the career planning of the employees and achieving the
objectives as well.
In the present scenario of fast changing business environment which is characterized by more
volatility, cut throat competition and global approach, organizations have started to give
increasing importance to effective Human Resource Planning for gaining a competitive edge
through appointment of the right talent in the right position. Not only in Staffing, but HRP plays
a crucial role in the areas of Training & Development, Compensation Determination as well as
planning and implementing various motivational initiatives for the employees.
Short Term and Long Term Human Resource Planning
Short Term Human Resource Planning is essentially derived from the long term human resource
planning, which is usually done for a period of 1 year. It contributes towards fulfillment of long
term objectives and one of the key issues involved in short term Hunan Resource Planning is
matching of available human resources with the existing jobs. Long Term Human Resource
Planning is essentially done for a period of five years or sometimes beyond it.
3.2. Steps in job analysis

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Job analysis can be conducted based on the following steps.

i) Determine the purpose for conducting job analysis. The purpose should be clearly linked to
organizational success and the organizational strategic plan. A frequent reason for conducting
job analysis projects is that jobs are much more dynamic than ever before. Technology and the
demands of a competitive environment frequently change the nature of the job requiring
reevaluation. Rapid organizational growth often means new types of jobs requiring job
descriptions. High turnover or low job satisfaction might be other indicators of the need for job
analysis projects.
ii) Identify the jobs to be analyzed. After the purpose is identified, it provides some indication
as to which jobs should be included in the job analysis. Often, however, time and resource
constraints limit the total number of jobs that can be included in the process. For example, if the
organization as a whole is experiencing turnover, that data should be analyzed to determine the
particular departments in which the problem seems to be the worst. That analysis indicates the
direction for the project.
iii) Review relevant background data. Effective job analysis often builds from previous work
and data that are already corrected. A review of current job descriptions and organizational
charts provides basic information with which to begin the project. Analysis of workflow assists
in understanding the responsibilities of the job and how it fits into the total work process.
iv) Plan and execute the job analysis project. Planning is the key to successful projects. The
appropriate data-gathering methodologies must be determined and an action plan developed as to
project activities and milestones. Data collection methods are covered in the next section.
v) Write the job description and job specifications. After the data are collected and analyzed,
they must be turned into the written work outputs, job descriptions, and job specifications.
Before these documents are finalized, they should be reviewed with a representative sample of
both the affected employees and their managers. If modifications to the documents are required,
they should be made and the appropriate final approvals obtained.
vi) Periodic review. It is good HR practice to engage in a planned process of periodic review of
job descriptions and job specifications. Many organizations use a revolving process, reviewing a
portion of the organization each year so that the entire organization is reviewed in a cycle—
usually three, four, or five years.
3.3. Methods of collecting job analysis information

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Job analysis is based on job data. Hence the question: how to collect job related data? A variety
of methods are available for collecting job data. The method that was historically linked to the
concept of job analysis was observation supplemented by the interview.
In recent years, questionnaires, check lists, critical incidents, diaries, personnel records and
technical conference method have also been experimented for collecting job-related data. A brief
description of each method is in order.
Observation: Under this method, data is collected through observing an employee while at
work. The job analyst on the basis of observation carefully records what the worker does, how
he/she does, and how much time is needed for completion of a given task. This is the most
reliable method of seeking first-hand information relating to a job.
This method is suitable for jobs that consist primarily of observable physical ability, short job
cycle activities. The jobs of draftsman, mechanic, spinner or weaver are the examples of such jobs.
However, the flip side of this method is that this method is not suitable for jobs that involve
unobservable mental activities reveal overlaps and grey areas and have not complete job cycle.
That it is time consuming is it’s yet another handicap. Given these, the job analyst needs to be
quite skillful in collecting data about jobs with a high degree of discretion or decision content.
Training can make the job analyst skillful.
Interview: In this method, the job analyst directly interviews the job holder through a structured
interview form to elicit information about the job. This method is found suitable particularly for
jobs wherein direct observation is not feasible.
By way of directly talking to the job holder, the interviewer job analyst may extract meaningful
information from the job holder about his/her job.
However the interview method is both time consuming and costly.
Particularly, the professional and managerial jobs due to their complicated nature of job, require
a longer interview’ This may also be a possibility that bias on the part of the analyst and the job
holder i.e., the respondent may cloud the accuracy and objectivity of the information gathered
through interview.
Nonetheless, the effectiveness of the interview method will depend on the ability of both
interviewer and respondent in asking questions and responding them respectively.

The following guidelines, as outlined by Carrol L. Shartle, Otis and Lenhert, may help the

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interviewer make his/her interview more effective:

a. Introduce yourself to make the worker know who you are and why you are there.
b. Allay the worker’s fear whatsoever by showing keen interest in both him/her and his/her job.
c. Do not advise the worker how to do the job.
d. Try to talk to the worker in his/her language, to the extent possible.
e. Do not create confusion between the work and the worker.
f. Make a full — fledged job study within the objectives of the programmes; and
g. Verify the job information whatsoever obtained.
Questionnaire: Questionnaire method of job data collection is desirable especially in the
following two situations:
First, where the number of people doing the same job is large and to personally interview them
is difficult and impracticable.
Second, where giving enough time to employees is desirable to enable them to divulge and
explore the special aspects of the jobs.
In this method, the employee is given structured questionnaire to fill in, which are then returned
to the supervisors. The supervisor, after making the required and necessary corrections in the
information contained in the questionnaire, submits the corrected information to the job analyst.
Questionnaire provides comprehensive information about the job. Information so obtained can be
quantified and processed in the computer. The greatest advantage of the questionnaire method is
that it enables the analyst to cover a large number of job holders in the shortest possible time.
However, the method suffers from certain shortcomings as well. In the absence of direct rapport
between the job analyst and the employee, both cooperation and motivation on the part of the
employee tends to be at low level. Often employee due to lack of training and skill, do not
express the job related information clearly. As such, job related data tends to be inaccurate.
Moreover, the method is time-consuming and costly.
Checklists: The checklist method of job data collection differs from the questionnaire method in
the sense that it contains a few subjective questions in the form of yes or no. The job holder is
asked to tick the questions that are related to his/her job. Checklist can be prepared on the basis
of job information obtained from various sources such as supervisors, industrial engineers, and
other people who are familiar with the particular job.
Once the checklist is prepared, it is then sent, to the job holder to check all the tasks listed in the

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list he/she performs. He/she is also asked to mention the amount of time spent on each task by
him/her and the type of training and experience required to do each task. Information contained
in checklist is, then, tabulated to obtain the job-related data.
Like questionnaire method, the checklist method is suitable in the large organizations wherein a
large number of workers are assigned one particular job. Since the method is costly and,
therefore, is not suitable for small organizations.
Critical incidents: This method is based on the job holder’s past experiences on the job. They
are asked to recapitulate and describe the past incidents related to their jobs.
The incidents so reported by the job holders are, then, classified into various categories and
analyzed in detail.

Diaries or log records: In this method, the job holder is asked to maintain a diary recording in
detail the job-related activities each day. If done judiciously, this method provides accurate and
comprehensive information about the job.
This overcomes memory lapses on the part of the job holder. The disadvantage associated with
this method is that it remains incomplete because it does not give desirable data on supervisor
relationship, the equipment used and working conditions prevalent at the work place.
Technical conference method: In this method, a conference is organized for the supervisors
who possess extensive knowledge about job. They deliberate on various aspects of the job. The
job analyst obtains job information from the discussion held among these experts/supervisors.
The method consumes less amount of time. It is seen from the preceding description that no
single method is complete and superior.
In fact, none of the method is to be considered as mutually exclusive. The best data related to a
job can be obtained by a combination of all methods described above.
The problems that may occur while conducting job analysis are:
1. Lack of support from the top management.
2. Relying on one source and method of data collection.
3. Non-trained and non-motivated job holders who are the actual source of job data.
4. Distorted information/data provided by the respondents i.e., the job holders because of non-
preparedness on their part.
3.4. Importance of job analysis information

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Job analysis can help you understand the duties and responsibilities of a particular job, determine
if an employee has the necessary skills and knowledge to do the job, identify any training needs
an employee may have, and identify which jobs are most important to the company.
Job analysis is the process of studying a particular job in order to identify the duties and
responsibilities involved, as well as the skills and knowledge required to do it. It is an important
process for both employees and employers. For employees, job analysis can help them
understand what is expected of them on the job.
It can also help them determine if they have the necessary skills and knowledge to do the job,
and identify any training needs they may have. For employers, job analysis can help them
identify which jobs are most important to the company, and determine what skills and
knowledge are needed to fill those positions.
Use your new analysis information to create a job description to keep on file. If your company
needs to hire for the role again, you can use the data for your job posting, which can attract more
qualified candidates. A job analysis can help a company update important processes and
information, for example, the salary information based on the responsibilities. A job analysis can
also help management understand the duties of each position reporting to them. As roles and
technologies develop, additional duties might have been added to a position that might not have
existed in the company previously. A job analysis can help fairly distribute duties among
departments or adjust salaries if needed.
i) Job Analysis can help you understand the duties and responsibilities of a particular job.
The first benefit of job analysis is that it can help you understand the duties and responsibilities
of a particular job. By studying the job description, you can get a better understanding of what is
involved in the job and what is expected of the employee. This can be helpful for both employees
and employers.
ii) Job analysis can help you determine if an employee has the necessary skills and knowledge
to do a job. The second benefit of job analysis is that it can help you determine if an employee
has the necessary skill and knowledge to do a job. By studying the job description, you can
identify the skills and knowledge required for the job. If an employee does not have all of the
required skills and knowledge, you may need to provide them with training so that they can be
adequately prepared to do the job.
iii) Job analysis can help you identify any training needs an employee may have. The third

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benefit of job analysis is that it can help you identify any training needs an employee may have.
By studying the job description, you can identify the skills and knowledge required for the job. If
an employee does not have all of the required skills and knowledge, you may need to provide
them with training so that they can be adequately prepared to do the job.
iv) Job analysis can help you identify which jobs are most important to the company. The fourth benefit
of job analysis is that it can help you identify which jobs are most important to the company.

By studying the job descriptions, you can identify the key positions in the company and
determine which skills and knowledge are needed to fill those positions. This can be helpful for
both employees and employers.
v) Job analysis can help you determine what skills and knowledge are needed to fill a position.
Last but not least, job analysis can help you determine what skills and knowledge are needed to
fill a position. By studying the job description, you can identify the skills and knowledge
required for the job.
If you are an employer, this information can be helpful when hiring new employees or when
training existing employees for a new position.
As you can see, there are many benefits of job analysis. Job analysis can help you understand the
duties and responsibilities of a particular job, determine if an employee has the necessary skills
and knowledge to do the job, identify any training needs an employee may have, and identify
which jobs are most important to the company.
If you are an employer, this information can be helpful when hiring new employees or when
training existing employees for a new position.
If you are an employee, job analysis can help you understand what is expected of you on the job
and identify any training needs you may have. Either way, job analysis is a valuable tool that can
benefit both employers and employees.
Human resources personnel, in most situations, conduct job analysis and submit the results to HR
and department managers, who subsequently make the necessary changes.
HR representatives can provide a more objective assessment because they are not in the same
department as the position they are reviewing.

3.5. Potential problems with job analysis

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No process can be entirely accurate and fully serves the purpose. Job analysis is no exception to
it. The process involves a variety of methods, tools, plans and a lot of human effort. And where
‘people’ are involved, nothing can be hundred percent accurate. However, they may be
appropriate considering various factors including organizational requirements, time, effort and
financial resources. Since the entire job analysis processes, methods and tools are designed by
humans only, they tend to have practical issues associated with them. Human brain suffers with
some limitations, therefore, everything created, designed or developed by humans too have some
or other constraints.

Coming back to the subject, even the process of job analysis has lot of practical problems
associated with it. Though the process can be effective, appropriate, practical, efficient and
focused but it can be costly, time consuming and disruptive for employees at the same time. It is
because there are some typical problems that are encountered by a job analyst while carrying out
the process. Let’s discuss them and understand how the process of job analysis can be made
more effective by treating them carefully.

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Problems with Job Analysis

 Lack of Management Support: The biggest problem arises when a job analyst does not
get proper support from the management. The top management needs to communicate it to
the middle level managers and employees to enhance the output or productivity of the
process. In case of improper communication, employees may take it in a wrong sense and
start looking out for other available options. They may have a notion that this is being
carried out to fire them or take any action against them. In order to avoid such
circumstances, top management must effectively communicate the right message to their
incumbents.
 Lack of Co-operation from Employees: If we talk about collecting authentic and
accurate job-data, it is almost impossible to get real and genuine data without the support
of employees. If they are not ready to co-operate, it is a sheer wastage of time, money and
human effort to conduct job analysis process. The need is to take the workers in
confidence and communicating that it is being done to solve their problems only.
 Inability to Identify the Need of Job Analysis: If the objectives and needs of job analysis
process are not properly identified, the whole exercise of investigation and carrying out
research is futile. Managers must decide in advance why this process is being carried out,
what its objectives are and what is to be done with the collected and recorded data.
 Biasness of Job Analyst: A balanced and unbiased approach is a necessity while carrying
out the process of job analysis. To get real and genuine data, a job analyst must be
impartial in his or her approach. If it can’t be avoided, it is better to outsource the process
or hire a professional job analyst.
 Using Single Data Source: A job analyst needs to consider more than one sources of data
in order to collect true information. Collecting data from a single source may result in
inaccuracy and it therefore, defeats the whole purpose of conducting the job analysis
process.

However, this is not the end. There may be many other problems involved in a job analysis
process such as insufficient time and resources, distortion from incumbent, lack of proper
communication, improper questionnaires and other forms, absence of verification and review of
job analysis process and lack of reward or recognition for providing genuine and quality
information.

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3.6. Meaning and definition of Human resource planning

Human Resource Planning (HRP) is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human resource capacity
of the organization can be utilized to fulfill these requirements. It, thus, focuses on the basic
economic concept of demand and supply in context to the HR capacity of the organization.
It is the HRP process which helps the management of the organization in meeting the future
demand of human resource in the organization.
Further, it is only after proper analysis of the HR requirements can the process of recruitment
and selection be initiated by the management. Also, HRP is essential in successfully achieving
the strategies and objectives of organization.
Though, HR Planning may sound quite simple a process of managing the numbers in terms of
human resource requirement of the organization, yet, the actual activity may involve the HR
manager to face many roadblocks owing to the effect of the current workforce in the
organization, pressure to meet the business objectives and market condition.
HR Planning, thus, help the organization in many ways as follows:
 HR managers are in a stage of anticipating the workforce requirements rather than getting
surprised by the change of events
 Prevent the business from falling into the trap of shifting workforce market, a common
concern among all industries and sectors
 Work proactively as the expansion in the workforce market is not always in conjunction
with the workforce requirement of the organization in terms of professional experience,
talent needs, skills, etc.
 Organizations in growth phase may face the challenge of meeting the need for critical set
of skills, competencies and talent to meet their strategic objectives so they can stand well-
prepared to meet the HR needs
 Considering the organizational goals, HR Planning allows the identification, selection and
development of required talent or competency within the organization.
 It is; therefore, suitable on the part of the organization to opt for HR planning to prevent
any unnecessary hurdles in its workforce needs.

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An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource availability in the
organization is the foremost step in HR Planning. It includes a comprehensive study of the
human resource strength of the organization in terms of numbers, skills, talents,
competencies, qualifications, experience, age, tenures, performance ratings, designations,
grades, compensations, benefits, etc.
 Future HR Demand: Analysis of the future workforce requirements of the business is the
second step in HR Planning. All the known HR variables like attrition, lay-offs,
foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into
consideration while determining future HR demand.
 Demand Forecast: Next step is to match the current supply with the future demand of
HR, and create a demand forecast. Here, it is also essential to understand the business
strategy and objectives in the long run so that the workforce demand forecast is such that it
is aligned to the organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm develops plans to meet these gaps as per the demand
forecast created by them. This may include conducting communication programs with
employees, relocation, talent acquisition, recruitment and outsourcing, talent management,
training and coaching, and revision of policies.

Hence, a properly conducted process of HR Planning by an HR Consulting Firm helps the

organization in meeting its goals and objectives in timely manner with the right HR strength in
action.

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3.7. Importance of human resource planning

Human resource planning allows to forecast the future manpower requirements and also to
forecast the number and type of employees who will be required by the enterprise in a near
future.
Human resource planning must be an integral part of business planning because it is the core of all
planning processes of the enterprise. The human being is the most important factor in the operation of the
enterprise.
A human resource plan must ensure that there is the right number and structure of people in the right jobs
at the right time. These people should meet the required company objectives. Based on the mentioned
above can be said that the well processed personnel plan is one of the assumptions at increasing
sustainable performance and competitiveness of the enterprise.
Human resource planning allows companies to plan ahead so they can maintain a steady supply
of skilled employees. The process is used to help companies evaluate their needs and to plan
ahead to meet those needs.
Human resource planning needs to be flexible enough to meet short-term staffing challenges
while adapting to changing conditions in the business environment over the longer term. HRP
starts by assessing and auditing the current capacity of human resources.
Here, identifying a company's skill set and targeting the skills a company needs enables it to
strategically reach business goals and be equipped for future challenges. To remain competitive,
businesses may need advanced skills or to up skill their employees as the market environment
evolves and changes.
To retain employees and remain competitive, HRP often looks at organizational design,
employee motivation, succession planning, and increasing return on investment overall.
3.8. Steps [procedures] in human resource planning
HR planning process involves:
 Environmental analysis
 Determining HR objectives and policies
 Human resource forecast
 Action plan
 Control and evaluation

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A. Environmental Analysis: refers to the systematic monitoring of the external

forces influencing the organization. The following forces are essential for HRP.
 Economic factors, including general and regional conditions.
 Technological changes
 Demographic changes including age, composition and literacy,
 Political and legislative issues, including laws and administrative rulings
 Social changes
Environmental scanning is the process of gathering information about events and their
relationships within an organization's internal and external environments. The basic purpose of
environmental scanning is to help management determine the future direction of the
organization. By scanning the environment for changes that will affect an organization, managers
can anticipate their impact and make adjustments early.
B. Determining HR objectives and policies
HR plan is usually derived from the organizational objectives. Specific requirements in terms
of number and characteristics of employees should be derived from organizational objectives
Once the organizational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objective and policy with regard to HR utilization
in the organization.
C. Human Resource Forecast
Once current human resources are analyzed and HR objectives and policies are determined, the
next step is to demand and supply forecast. It is to determine future requirement of number of
employees, skill required and the internal and external supply.
D. Action Plan
It is known as manpower planning implementation. HR implementation requires converting an
HR planning into action. A series of action are initiated as a part of HR plan implementation
such as recruitment, selection and placement, socialization, training and development etc.
E. Control and Evaluation
Monitoring and evaluation to ensure that HR planning matches the HR objective and policies.
HR manager develop certain HR indicators in order to know the progress of HR management.
Evaluation is also done with respect to employment cost against the budget and wastage accrued
so that corrective action can be taken in future: (continuous process, timely feedback).

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3.9. Factors affecting human resource planning

Human resource planning is a set of activities and processes directed toward the selection and
retention of qualified employees. There are several factors affecting human resource planning.
Factors affecting HRP (human resource planning) can be internal to the organization or external
to the industry and economy at large.
Internal Factors Affecting HRP
Human resources works with the management across functions to understand their needs. It is a
critical role for the smooth functioning of all departments. Here are some internal factors
affecting human resource planning:
 Recruitment Needs
The Key internal factor affecting Human Resource Planning (HRP) is the recruitment needs
of various departments. One of the factors affecting HRP is the need to fill vacant positions.
Recruitment is a process that identifies and invites applicants to apply for vacant positions.
 Budget
Effective HRP requires resources, money and time and many other resources for functioning.
Besides this, all pay packages for hires must also fit into the available resources. Increments
are also affected by budgetary constraints.
 Training Needs
The role HRP is not limited to recruitment. One of the significant internal factors affecting
Human Resource Planning is whether the staff needs up skilling or reskilling.
It’s not enough to hire someone who has adequate skills to do his/ her job well. Managers also
ensure employees receive adequate on-the-job training.
 Work Environment
A pleasant work environment is another factor for HR Managers to consider. Employees want
to be part of a team that’s committed to a common goal and where they enjoy the respect of
co-workers and management. If employees isn’t happy, they may leave to work elsewhere.
 Retrenchment (economizing)
From time to time, organizations will need to let people go. These may be underperformers,
or perhaps they are employees who’d been hired for a specific project or location that is
shutting down. It falls to HR to see them through this difficult time.

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External Factors Affecting HRP

Aside from the intra-organizational needs, there are external factors affecting human resource
planning. Here are a few to consider:
 Competitive conditions
HR Managers seek to maintain low costs as there are many recruiters vying (compete) for the
same talent, it can drive up costs.
 Regulatory shifts
Whether it is ensuring safety or labor laws, regulatory shifts impact HR practices.
Organizations have to provide safe working conditions and appropriate training for their
employees, minimizing the risk of accidents.
 Advancing Technology
The HR Manager must know recent developments in technology and trends which impact the
planning process. In many organizations, new information technologies are being introduced
that have a significant impact on functioning. The HR Department needs to be two steps
ahead. Working with the relevant departments to recruit talent to grow with the organization
and offer skills that will be in demand for future projects is critical.
 Unforeseen Circumstances
One of the external factors affecting Human Resource Planning is situations that arise Out of
the control of the organization. These can cause massive changes to how we function. The
Covid-19 Pandemic is a prime example. Almost overnight, businesses had to adapt to
closures, social distancing norms and disruptions in the supply chain. Natural disasters and
climate change may cause further changes in the future. While these factors affecting Human
Resource Planning are impossible to predict, organizations need to be prepared.
 Economic Conditions
The economic climate will affect an organization’s Human Resource Planning as it impacts
the bottom line. Changes in the labor market will affect the organization’s ability to attract
and keep qualified employees.
 Demographic Changes
Changes in the population may affect an organization’s ability to attract and retain qualified
employees. An increase or decrease in population has an impact in the supply of qualified
candidates. It may also strain the educational system, which will further impact hiring.

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UNIT 4 - RECRUITMENT & SELECTION

4.1. Employee Recruiting
Employee recruitment refers to the overall process of drawing in, shortlisting, choosing and
delegating appropriate possibility for employments (either lasting or transitory) inside an
association. Recruitment can likewise allude to processes associated with picking people for
unpaid jobs.
Managers, human resource generalists and recruitment masters might be entrusted with
completing recruitment, however now and again open segment business offices, business
recruitment offices, or pro inquiry consultancies are utilized to attempt portions of the process.
Sourcing is the utilization of at least one recruitment method to draw in or distinguish the
possibility to fill work opening. It might include inside and additionally, outer recruitment
promoting, utilizing fitting media, for example, work gateways, nearby or national papers, online
life, business media, expert recruitment media, proficient productions, window ads, work
focuses, or in an assortment of ways by means of the internet.
Then again, managers may utilize recruitment consultancies or organizations to discover in any
case rare applicants—who, as a rule, might be content in the present positions and are not
effectively hoping to move. This underlying exploration for up-and-comers—likewise called
name age—produces contact data for potential competitors.
4.1.1 Features of recruitment
Features of recruitment are discussed below.
(1) Recruitment is an important process of attracting applicants with certain capabilities, skills,
attitudes etc., to job vacancies in an organization.
(2) Recruitment helps to develop and maintain adequate manpower resources.
(3) Recruitment helps to create a pool of applicants from which new employees can be selected.
(4) Recruitment is a matching process.
(5) Recruitment lays foundation for selection of employees.
(6) Recruitment is a two-way process. It helps both i.e., a recruiter and a recruited. A recruiter
gets a choice as to whom to recruit from among the pool. While a recruited also can decide
whether he should apply for the job in the organization considering his abilities, future prospects
and his expectations.
(7) Recruitment helps to identify, attract and hire the most qualified people for an organization.

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4.1.2. Purpose of recruitment

Recruitment is the most critical HR process because it is responsible for identifying and
attracting qualified candidates for open positions within the company. By ensuring that the right
people are hired, an organization can reduce turnover and improve productivity. In addition,
effective recruitment can help an organization to better meet its goals and objectives.
The purpose of recruitment is to create a wide pool of qualified candidates from which one has to
choose the most qualified individual for the job. This approach draws big groups of individuals
and encourages them to apply for open opportunities in a company.
The purposes of recruitment are as follows:
o Attract and empower an ever increasing number of applicants to apply in the
organization.
o Build positive impression of the recruitment process..
o Create a talent pool of candidates to enable the selection of best candidates for the
organization.
o To attract and engage people it needs to achieve its overall organizational objectives
o Increase the pool of job candidates at minimum cost.
o Recruit right people who will fit in to organizations culture and contribute to the
organizations goals.
o Determine Current and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
o It Help upwards the achievement rate of choice process by diminishing number of
unmistakably under-qualified or overqualified work candidates.
o It Help decrease in the likelihood that activity candidates once enlisted and chose will
leave the organization after a brief time frame.
o Meet the organizations lawful and social commitments with respect to the synthesis of its
workforce.
o Begin identifying and preparing potential job applicants who will be appropriate
candidates.
o Increment organization and individual effectiveness of different selecting systems
temporarily and long haul.

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o Evaluate the effectiveness of various recruiting technique and sources.

4.1.3. Factors governing recruitment
Factors Affecting Recruitment
INTERNAL FACTORS
The internal forces that effect recruiting personnel in the organization, i.e. the factors which can
be controlled by the organization are discussed below.
1. Recruitment policy. The recruitment policy of an organization specifies the objectives or
recruitment and provides a framework for implementation of recruitment program.
2. Human resource planning. Effective human resource planning helps in determining the gaps
present in the existing manpower of the organization.
3. Size of the organization. The size of the organization affects the recruitment process. If the
organization is planning to increase its operations and expand its business, it will think of hiring
more personnel, which will handle its operations.
4. Cost involved in recruitment. Recruitment incur cost to the employer, therefore,
organizations try to employ that source of recruitment which will bear a lower cost of
recruitment to the organization for each candidate.
5. Growth and expansion. Organization will employ or think of employing more personnel if it
is expanding its operations.
EXTERNAL FACTORS
1. Supply and demand. The availability of manpower both within and outside the organization
is an important determinant in the recruitment process.
2. Labour market. Employment conditions in the community where the organization is located
will influence the recruiting efforts of the organization.
3. Goodwill / image of the organization. Image of the organization is another factor having its
influence on the recruitment process of the organization.
4. Political-Social- legal environment. Various government regulations prohibiting
discrimination in hiring and employment have direct impact on recruitment practices.
5. Unemployment rate. One of the factors that influence the availability of applicants is the
growth of the economy (whether economy is growing or not and its rate).
6. Competitors. The recruitment policies of the competitors also affect the recruitment function
of the organizations. To face the competition, many a times the organizations have to change

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their recruitment policies according to the policies being followed by the competitors.
4.1.4. Sources and Methods of Recruitment
The different recruitment methods include employee referral programs, internships, word-of-
mouth recruitment, job boards, social media, and networking. The sources of recruitment can be
divided into internal and external sources.
Internal Sources of Recruitment:
1. Promotions: The promotion policy is followed as a motivational technique for the employees
who work hard and show good performance. Promotion results in enhancements in pay, position,
responsibility and authority.
2. Retirements: The retired employees may be given the extension in their service in case of
non-availability of suitable candidates for the post.
3. Former employees: Former employees who had performed well during their tenure may be
called back, and higher wages and incentives can be paid to them.
4. Transfer: Employees may be transferred from one department to another wherever the post
becomes vacant.
5. Internal advertisement: The existing employees may be interested in taking up the vacant
jobs. As they are working in the company since long time, they know about the specification and
description of the vacant job. For their benefit, the advertisement within the company is
circulated so that the employees will be intimated.
Benefits of Internal Sources of Recruitment:
1. The existing employees get motivated.
2. Cost is saved as there is no need to give advertisements about the vacancy.
3. It builds loyalty among employees towards the organization.
4. Training cost is saved as the employees already know about the nature of job to be performed.
5. It is a reliable and easy process.
Limitations of Internal Sources of Recruitment:
1. Young people with the knowledge of modem technology and innovative ideas do not get the
chance.
2. The performance of the existing employees may not be as efficient as before.
3. It brings the morale down of employees who do not get promotion or selected.
4. It may leads to encouragement to favouritism.

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5. It may not be always in the good interest of the organization.

External Sources of Recruitment:
1. Press advertisement: A wide choice for selecting the appropriate candidate for the post is
available through this source.
It gives publicity to the vacant posts and the details about the job in the form of job description
and job specification are made available to public in general.
2. Campus interviews: It is the best possible method for companies to select students from
various educational institutions. It is easy and economical.
The company officials personally visit various institutes and select students eligible for a
particular post through interviews. Students get a good opportunity to prove themselves and get
selected for a good job.
3. Placement agencies: A databank of candidates is sent to organizations for their selection
purpose and agencies get commission in return.
4. Employment exchange: People register themselves with government employment exchanges
with their personal details. According to the needs and request of the organization, the candidates
are sent for interviews.
5. Walk in interviews: These interviews are declared by companies on the specific day and time
and conducted for selection.
6. E-recruitment: Various sites such as [Link], [Link], and [Link] are the
available electronic sites on which candidates upload their resume and seek the jobs.
7. Competitors: By offering better terms and conditions of service, the human resource
managers try to get the employees working in the competitor’s organization.
Benefits of External Sources of Recruitment:
1. New talents get the opportunity.
2. The best selection is possible as a large number of candidates apply for the job.
3. In case of unavailability of suitable candidates within the organization, it is better to select
them from outside sources.
Limitations of External Sources of Recruitment:
1. Skilled and ambitious employees may switch the job more frequently.
2. It gives a sense of insecurity among the existing candidates.

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3. It increases the cost as advertisement is to be given through press and training facilities to be
provided for new candidates.
4.2. Employee Selection
It is the process of interviewing and evaluating the candidates for a specific job and selecting the
most suitable one for employment based on specific criteria including his/ her qualifications,
skills, experience, and expertise.
Selection is the process of choosing from among the candidates the most suitable person for the current
position or for the future position. It is the process of choosing the right person for a particular job. It
leads to employment of workers.
4.2.1. Selection criteria
Selection criteria are the essential skills, knowledge, experience and qualifications you must
demonstrate to be eligible for a job. HR departments use them to evaluate candidates'
competency, and they are necessary for most government jobs, and for new roles at most large
organizations.
What are some examples of selection criteria?

 Ability to work in a team and a collaborative environment

 Exceptional time management skills and ability to meet deadlines
 Ability to demonstrate a high level of effective team management
 A qualification in a relevant industry area
 What skills do you have that are relevant to this position?
 Is it possible for your abilities to be transferred to this position?
 How do you go about honing your skills?
 Give some examples of your abilities in action.
 What relevant professional knowledge do you have for this position?
 What skills would you bring to this position?
 How do you keep your knowledge and skills up to date?
 What kind of experience did you get and where did you get it?
 What is your level of experience?
 What skills do you have that might be useful in this position?
 Give a few examples of how you’ve used your skills.

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 What qualifications do you have that would make you a good fit for this position?
 What personal qualities do you have that would make you a good fit for this position?

4.2.2. The Selection Processes

Every organization creates a selection process to meet its requirements. So, the processes of
selection are presented hereunder.

i) Preliminary interview. This is a very general and basic interview conducted so as to eliminate
the candidates who are completely unfit to work in the organization. This leaves the organization
with a pool of potentially fit employees to fill their vacancies.

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ii) Receiving applications. Potential employees apply for a job by sending applications to the
organization. The application gives the interviewers information about the candidates like their bio-
data, work experience, hobbies and interests.
iii) Screening applications. Once the applications are received, they are screened by a special
screening committee who choose candidates from the applications to call for an interview.
Applicants may be selected on special criteria like qualifications, work experience etc.

iv) Employment tests. Before an organization decides a suitable job for any individual, they have
to gauge their talents and skills. This is done through various employment tests like intelligence
tests, aptitude tests, proficiency tests, personality tests etc.
v) Employment interview. The next step in the selection process is the employee interview.
Employment interviews are done to identify a candidate’s skill set and ability to work in an
organization in detail. Purpose of an employment interview is to find out the suitability of the
candidate and to give him an idea about the work profile and what is expected of the potential
employee.
vi) Checking references. The person who gives the reference of a potential employee is also a very
important source of information. The referee can provide info about the person’s capabilities,
experience in the previous companies and leadership and managerial skills. The information
provided by the referee is meant to keep confidential with the HR department.
4.2.3. Factors governing selection
There are a number of factors which affect the outcomes of an organization’s selection process,
we have outlined seven that you should be aware of.
a. The recruitment campaign. A recruitment campaign may attract high quality candidates.
b. The geographic location of candidates. The geographic location of candidates may affect the
demographics of the candidate and missing out on great talent.
c. The literacy skills of the candidates. As with geographic location, literacy skill varies across
applicants. This will ultimately impact their suitability to the role.
d. The number of candidates applying for a position. The more candidates that apply, means a
larger pool of talent to search within.
e. The correct use of assessment. It is critical that the correct assessment is used in order to
identify the correct target group.

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f. Attractiveness of the position. Some roles are more attractive than others. The more attractive
the role, the more likelihood of attracting high quality candidates. This can include the type of
responsibilities, the perks and the culture of the organization.
g. The selection process itself. The likelihood of identifying a quality candidate depends on the
selection process used. By being aware of how these seven factors can either positively or
negatively affect your selection process, you can ensure you receive high-quality candidates that
will be suitable for the role and ensure continued success for your organization.
4.3. Induction (Orientation)
Induction is the process of introducing new employees to a company or organization, including
providing information about the company's policies, procedures, and culture.
Orientation is the process of familiarizing new employees with the physical layout of the
company and the location of various departments and facilities.
Induction is about familiarizing employees with the company's culture, policies and procedures.
Induction Orientation
Introduces new employees to the Introduces new employees to the
company and its culture specific job and its requirements
Covers company history, values, Covers job duties, expectations, policies,
mission, and goals and procedures
Often done before the employee starts Often done on the first day of work
working
Can be done in a group or individually Can be done in a group or individually
Can take several days or weeks to Typically shorter and more focused
complete
May include a tour of the facility May include a tour of the specific
department or work area
Can include training on company Can include training on specific job-
systems and processes related skills and tools
Facilitated by HR or a dedicated Facilitated by the employee's manager
induction team or a designated supervisor
Advantages of Induction
 Allows new employees to quickly familiarize themselves with the company's culture,
policies, and procedures and become productive members of the team.

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 Increased retention rates.

 Improved communication and collaboration
 Better understanding of company culture
 Increased productivity
 Cost-effective: Induction programs can be cost-effective as they can be delivered in a
variety of formats such as online training, group sessions, or one-on-one meeting.

Advantages of Orientation:
 Helps new employees acclimate to the company culture and expectations.
 Provides information about company policies, procedures, and benefits.
 Introduces new employees to their colleagues and team members.
 Helps new employees understand their role and responsibilities within the company.
 Offers training and development opportunities to help new employees perform their job
effectively.
 Can help new employees feel more comfortable and confident in their new job.

4.3.1. Purpose of orientation

Induction or orientation is an event where you introduce the job and your organization to the new
employee and vice versa. It is an important process for bringing new employees into your
business. The process will cover your rights as the employer, the employee rights and the terms
and conditions of employment.
Hence, the purpose of orientation is listed below.
 Orientation sets the stage for company policy and human resource processes within the
business.
 Create a clear understanding of the rules regarding workplace safety, sexual harassment
and key company policies.
 Reduces legal liability for the company by setting a standard that creates an equal
opportunity workplace.
 Creates clearly defined roles, job requirements and expectations.
 Boosts employee confidence by reducing ambiguity. A clear set of expectations are set
alongside a system for communications between the employee, human resources

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departments and supervisors. After the orientation, the employee knows exactly who to
talk to about different issues and job requirements.
 Creates a positive tone and a sense of safety because employees know they are protected
from discrimination and harassment under a clear set of company policies.
Generally, orientation is important because it lays a foundation for the new employee’s entire
career with the department. First impressions are important since they establish the basis for
everything that follows.
4.3.2. Levels of orientation

i) New hire paperwork: is the paperwork any new employee needs to complete in order to begin
working for your company. This paperwork is a combination of documents. Some of these forms
are government forms for income tax and legal obligations. Other documents, such as the
company code of conduct and an employee handbook, establish an agreement between you and
your new employee about company policy.
ii) Welcome and introduction: is onboarding (involving) new hires is the process companies go
through to welcome and integrate employees into the workplace. This very definition suggests
that the employee onboarding process extends far beyond the first day of a new hire – it
continues until they have fully adjusted to their role and team.
iii) Office access and infrastructure: Your work environment impacts your mood, drive, mental
health and performance. That's why creating a positive work environment is critical to your
company's success.
iv) Induction training: It is a process of introduction of a new employee to the culture and

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practices in the organization. Employee learns about the new organization over the entire period
of service but it is a good practice to impart induction training within a few days after joining.
UNIT 5. TRAINING AND DEVELOPMENT
Training is a formal process by which talent development professionals help individuals improve
performance at work. Development is the acquisition of knowledge, skill, or attitude that
prepares people for new directions or responsibilities.
Employee training and development includes any activity that helps employees acquire new, or
improve existing, knowledge or skills. Training is a formal process by which talent development
professionals help individuals improve performance at work.
Development is the acquisition of knowledge, skill, or attitude that prepares people for new
directions or responsibilities. Training is one specific and common form of employee
development; other forms include coaching, mentoring, formal learning, self-directed learning or
experiential learning.
5.1. Objectives of Training and Development
The objectives of training and development are not limited to just increasing productivity and
efficiency, but the busy market and ceaselessly active competition of today, demands much more
than that from organizations. It’s all thanks to the conditions that a company faces and the race of
“growth” that has made the addition of new skills and improvement of the existing skill-set,
which is an extremely important aspect of a business.
 Increased productivity
 Quality improvement
 Learning time reduction
 Safety first
 Labour turnover reduction
 Keeping yourself updated with technology
 Effective management
Let’s discuss all of the above mentioned objectives in detail one by one.
1. Increased productivity. For any company, keeping the productivity at its peak is as important
as getting in new customers for business. Training takes the current capabilities of the workers of
a brand, polishes it and makes them learn and devise new and effective methods of doing the

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same thing, in a repeated manner. In other words, the training, if done in a proper way, can give
your business a whole new look with a much powerful base as experienced workers at its core.
2. Quality improvement. Improving the quality of the product is obviously one of the main
objectives of training and development since it’s not like those times when customers weren’t
such quality conscious. Today’s customer knows what’s better for him and what’s not. Simply
said, those old methods of some sweet talk and business won’t work for much long, because
once they know the reality behind the curtains through the services and products quality, they
will leave the company as it is without giving it, even, a second thought.
3. Learning time reduction. Keeping an eye on the learning capabilities of employees, and
providing them the help which they need, can be highly beneficial in longer runs. This capability
of theirs’ is what that determines how quickly an employee grabs the newly discovered fact and
so, shape the future products on this discovery. The weaker the capability, the harder it is to
learn. But this scenario can also be supported by the usage of proper learning material and
experienced instructors who prefer real-life experience than cramming. So, reducing the learning
time is also one of the main objectives of training and development.
4. Safety first. Safety of anyone, either he is a worker, an officer or even a customer, is not
something that can be taken lightly, especially in cases, where one knows that even a minute
mistake can even lead to life threats. Therefore, providing the knowledge, for using the
equipment in a proper way and creating the life-friendly product, also belongs to one of the
major objectives of training and development. The higher, the employees are better at handling
equipment, the better it is both for the company and for the workers.
5. Labor turnover reduction. No business can flourish well while it is regularly turning over its
workforce since it is obvious that every new workforce will require some time to understand the
type of work, its principle and safety precautions, which lead to decreased productivity.
6. Keeping oneself updated with technology. Computers and mobile phones are the miracles
of the past but the world of today is far more advanced than that. Training and education to the
employees keep them updated with the latest of the additions to the technologies, methods,
techniques and processes.
Since it also opens a new gateway for them to look for a way which is greater in productivity and
efficiency but decreases the need of manual work immensely.
7. Effective management: One of the primary objectives of training and development process

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is to give rise to a new and improved management which is capable of handling the planning and
control without any serious problem.
5.2. Process of Training and Development
Stages of the Training Process
Effective training begins well before a trainer delivers an individual training session and continues after
that training session is completed. Training can be viewed as a process comprised of five related stages or
activities: assessment, motivation, design, delivery, and evaluation.
a. Assessment. Assessing training needs and the resources available to meet those needs forms the first
step in developing and delivering effective training.
b. Motivation. Motivation to participate in training is key to the success of training efforts. Motivation is
not limited to the learners who attend training. Trainers must also be motivated to deliver high-quality
training, and learners’ supervisors must be motivated to support the learners in their training activities.
c. Design. Well-designed training is planned, appropriate to the target audience, and able to be delivered
within the resources available.
d. Delivery. The preparation for training described in the sections on assessment, motivation, and design
culminates (ends/ concludes) in the delivery of training.
e. Evaluation. Evaluation considers the success of training and is necessary for identifying elements of
training processes and training programs that were beneficial and areas for improvement. The most
effective evaluation is not initiated following the end of a training session, rather occurs throughout the
training process. A plan for evaluation should be built into the plan for training from the beginning, and
the results of evaluation should be communicated in order to inform future efforts.
5.3. Training Methods
Most training methods target more than one learning style, whereas some focus on one particular
style. Below are seven of the best types of employee training methods:
i. Case studies. This type of training is great for developing critical thinking, problem-solving,
and analytical skills. Learners read the case studies and then analyze and solve them individually
or in a group.
ii. Coaching. Mentorship—another name for coaching—should be an impactful and memorable
learning experience. At least, that is the expectation of mentors and mentored. When your
experienced staff dedicates time and effort to coaching new employees, those new employees
will feel valued and supported.

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iii. E-learning. You might know this one by online training. It is computer-based training that is
delivered from a distance, online.
iv. Instructor-led training. Whether it is in-person or online, an instructor-led training session is
very much based on the dynamics of a classroom.
v. Interactive training. Anything interactive has the potential to grab our attention. And training
is no different! That’s why interactive training is highly engaging and effective. Learners absorb
more information, retain it faster, and recall it for longer periods of time.
vi. On-the-job training. Also known as hands-on training, on-the-job training is all about the
practical skills that a job requires. Therefore, the employee learns by going through the
experience of executing real activities at work. On-the-job training reduces the time before the
employee starts performing their job function.
vii. Video-based training. Speed and efficiency—these are the keywords that propelled video as
an employee training vehicle. Additionally, it became popular because it can be more interesting
than traditional training methods. It is highly engaging as well as entertaining.
5.4. Career Development
Career development is the process of learning and utilizing short-term skills to progress toward
long-term professional goals. This process is often lifelong and involves steadily reaching
milestones specific to your designated career path.
A career path can be visualized as a ladder, with each rung symbolizing the level of a role on the
path. Landing a job is a paramount first step, but odds are you may not want to stay at the entry
level forever.
Moving up the career ladder and earning promotions is easier said than done, however. It often
requires careful planning and taking intentional steps.
Career development is all about gathering what skills and experiences can launch you further on
your career path, and navigating these processes in increments (or ladder steps) to make career
growth manageable.
Career development is important for the following reasons.
 Helps make use of skills
 Increases motivation at work
 Helps achieve financial goals
 Increases employee retention

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 Increases happiness and satisfaction

UNIT 6. 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 as indicated below.
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.

6.1. Purpose of Performance Appraisal

The main purpose of performance appraisals is to measure and improve the performance of
employees and increase their future potential and value to the company.
Performance Appraisal can be done with following objectives and purposes in mind:
 To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
 To identify the strengths and weaknesses of employees to place right men on right job.
 To maintain and assess the potential in a person for growth and development.
 To provide a feedback to employees regarding their performance and related status.
 It serves as a basis for influencing working habits of the employees.
 To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

Effective performance appraisal results in the following advantages.
 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.
 Compensation: Performance Appraisal helps in chalking out compensation packages for
employees. 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.

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 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.
 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.
 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:

o Through performance appraisal, the employers can understand and accept skills of
subordinates.
o The subordinates can also understand and create a trust and confidence in
superiors.
o It also helps in maintaining cordial and congenial labour management
relationship.
o It develops the spirit of work and boosts the morale of employees.

 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.

6.2. Performance Appraisal Steps

The primary goals of a performance evaluation system are to provide an equitable measurement
of an employee’s contribution to the workforce, produce accurate appraisal documentation to
protect both the employee and employer, and obtain a high level of quality and quantity in the
work produced. To create a performance evaluation system in your practice, follow these steps:
1. Develop an evaluation form. Performance evaluations should be conducted fairly,
consistently and objectively to protect your employees’ interests and to protect your practice
from legal liability.

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2. Identify performance measures. Standard performance measures, which allow you to

evaluate an employee’s job performance objectively, can cut down on the amount of time and
stress involved in filling out the evaluation form.
3. Set guidelines for feedback. Feedback is what performance evaluations are all about. So
before you implement your performance evaluation system, make sure that everyone who will be
conducting evaluations knows what kind of feedback to give, how to give it and how to get it
from the employee in return.
4. Create disciplinary and termination procedures. In some cases, even after a thorough
performance evaluation and a discussion of expected improvements, an employee will continue
to perform poorly. You need to be prepared to handle such a situation by having well-defined,
written disciplinary and termination procedures in place.
5. Set an evaluation schedule. Once you have built your performance evaluation system – the
evaluation form, the performance measures, the feedback guidelines and the disciplinary
procedures – you just need to decide when to conduct the performance evaluations.
6.3. Problems Associated with Performance Appraisals
Common problems in performance appraisal include:
i) Appraiser bias. Prejudices are an inherent trait of humans research shows that we make more
decisions based on our own biases instead of facts and logic. When conducting a performance
appraisal, it is possible for the appraiser to, consciously or unconsciously, formulate bias in
favour or against an employee, thereby affecting the outcome of the performance appraisal.

ii) Halo effect. This refers to the process whereby an appraiser takes a trait of an employee, such
as personality trait, physical trait, or previous work experience, and bases their judgement on this
one aspect. For example, if an employee always exceeds performance expectations, an employer
may generalize based on this, rather than conduct a thorough and objective performance review.

iii) Extended periods between appraisals. Another common issue seen with performance
appraisals is the extended time period between reviews – organizations typically do this once a
year. However, this means that employees do not receive continuous, instant feedback on their
work. This can leave some employees feeling frustrated or confused as they are unable to
determine whether they are improving in their performance.

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iv) Lack of recognition. Another significant issue with performance appraisals is the fact that
many managers focus on the negative, not the positive. When providing feedback, it’s important
to structure it in a constructive manner where employees are given appreciation as well as
constructive criticism. This will positively impact their productivity and engagement levels.
Mistakes that a manager should avoid when conducting a performance appraisal
While performance appraisals have the potential to enhance an employee’s work experience,
they can often do the opposite, leaving them unsatisfied. This can generally be attributed to
managers and the mistakes they make during the performance appraisal process.

a. Not following up with employees after evaluations

Many managers make the mistake of not following up with employees after performance
appraisals. The task may have been completed, however, a performance appraisal should lead to
the formulation of goals and action plans going forward. While employees should be responsible
for developing themselves, managers have the responsibility of supporting their employees
where possible so that they can achieve their goals.

b. Central tendency

This refers to when an appraiser gives employees an average rating across all performance
scales. This is typically done when raters do not want to hurt employees’ feelings or they simply
want to avoid over- or under-rating employees’ abilities.
This does not only result in an inaccurate reflection of an employee’s performance, but it also
negatively impacts the data retrieved from these appraisals. This will limit management’s ability
to make informed, proactive decisions.

c. Recency effect

This occurs when the person conducting the performance appraisal focuses on the most recent
events or work of an employee instead of reviewing the entire performance period.
This means that, if a poor-performing employee suddenly performs well in the time leading up to
the appraisal, they will have a good performance review, which would simply be an inaccurate
reflection of their overall performance during the past year.
On the other hand, an employee who generally performs well may drop in their performance, and
this may simply be due to factors outside of their control. This would then result in the employee

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receiving a poor performance review, which does not accurately reflect the work they’ve put in
throughout the period being reviewed.
09/03/2023

07/03/2023
6.4. Performance Appraisals Methods
There are various types of modern performance appraisal methods that an organization can put to
use. They are Management by Objectives (MBO), Behaviorally Anchored Rating Scale (BARS),
Assessment Centre, 360-degree feedback, forced choice method, psychological appraisal, and
Human Resources Accounting Method.
a. Management by Objective. It is a process in which a manager identifies the desired
objectives to be achieved and gives each individual a major area of responsibility in terms of
results expected from him/her and uses these measures as a guide to access the contribution of
each individual employee. This method basically uses the SMART technique to ensure that the
assigned goals are Specific, Measurable, Achievable, Realistic and Time-sensitive.
It is less time-consuming and cost-effective compared to the other performance appraisal
methods. With this method you can easily find out whether the stated objective is achieved or not
in a given time period. Also, the managers can easily determine whether the employee will be
rewarded or needs to be trained further to improve the performance.
This technique mainly involves four significant steps: Goal Setting, Evaluation Standards,
Analysis, and Periodic Review.
 Goal Setting: Each employee is assigned certain goals based on the skills and the job
role that have to be attained for the next quarter or year.
 Evaluation Standards: These are set based on the type of goals they have been assigned
and the metrics that would help evaluate those goals.
 Analysis: This is the stage where the goals will be analyzed against the produced
outcomes with the help of evaluation metrics.
 Periodic Review: The manager now reviews the overall performance and decides if the
employee needs to be trained or guided for efficiently attaining the set goals in the future.
As mentioned above, this technique is more inclined towards aiding better employee
performance in the future.

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b. Behaviourally anchored rating scale (BARS). This method has been developed recently and
is claimed to be one of the effective methods among all the appraisal methods listed. It is a
combination of traditional essay evaluation and rating scale. It is more expensive than other
methods and guarantees precise results.
In this method the employee’s behaviour and performance are analyzed and used for evaluating
overall performance of an employee. It consists of various scales that are volunteered by multiple
BARS statements which further explain the employee traits. Based on the performance and
behaviour of an employee, they are anchored as good, average, or poor.
The BARS method is the most preferred performance appraisal method as it enables managers to
gauge better results, provide constant feedback and maintain consistency in evaluation.
c. Critical Incident Method. In this method the employer or manager evaluates an employee on
the basis of “certain events” known as critical incidents where the employee did something really
great or something not so great things at work.
This basically involves three steps:
 A list of all the noteworthy (positive or negative) things related to the on-the-job
behaviour of employee will compiled in a list.
 A team of experts will be given the responsibility to entitle a weightage or score to each
incident.
 Based on this list the employees will then be evaluated.
The evaluator should maintain a digital or physical journal to store the information of different
incidents. This method is extremely useful for the growth of an employee since it gives detailed
information unlike other performance appraisal methods.
d. 360 degree feedback. This is somewhat time-consuming method since there are multiple
scales involved in evaluating the performance, but it’s worth a try. In this method, the feedback
of the employee is collected by the people who interact with him in the organization including
his superiors, peers, subordinates, and also from customers. The feedback is usually taken by a
questionnaire designed for this purpose. This method is very useful for startups.
This technique helps managers to get insights from a different perspective and conduct an
unbiased performance review. The step-by-step process involving the following components:
 Self-review
 Peer review

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 Managerial review
 Client feedback
All these stages ensure that not just the managers but the employees as well are aware of how
they are performing and guide each other while trying to improve individual performance.
e. Forced choice method. In this method, evaluator rates an employee based on the group of
statements. These statements are combination of both negative and positive statements. You need
to identify the most descriptive statements of an employee and evaluate him. Such as:
 Can be dependent to complete the project or task
 Is reliable and trustworthy.
However, the weight assigned to each statement is not revealed to the reviewer. The HR
personnel provide final rating considering all the sets of statements. Therefore, this is known to
be an objective-based technique to conduct performance appraisals.
Choosing the best performance evaluation approach is more important than ever as it represents
what you think of your employees and how much you feel about the productivity of your
workforce. These are the 5 effective performance appraisal methods you can implement right
away. Implementing these methods and a proper Performance Management Software helps in the
growth of an employee and hence the growth of an organization.
f. Psychological appraisal method. A psychological appraisal is one of the most exciting and
intuitive appraisal methods. This method assesses the employees' potential for future
performance rather than their past one. It focuses on employees' emotional, intellectual, and other
personal characteristics affecting their performance.
g. Human resources accounting method. Human Resource Accounting (HRA) is the process of
identifying and reporting investments made in the human resources of an organization that are
presently unaccounted for in the conventional accounting practice. It is an extension of standard
accounting principles.

CHAPTER 7 - COMPENSATION
Compensation refers to monetary payment given to employees in exchange for their services. It
includes salary or wages in addition to commission and any incentives or perks that come with
the given employee's position.
7.1. Importance of Compensation

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The importance of compensation discussed below.

i) Attracting top talent. People are always looking to put themselves in the best possible
position financially. Those who are worth a specific salary amount often know their value and
will seek a position that pays accordingly. Do research on what your competitor's compensation
and benefits packages look like. Make sure you offer a similar package to your potential
employees so that you attract the best candidates for your company.
Increased employee motivation. Properly compensating employees shows you value them as
workers and as human beings. When people feel valued, they feel better about coming in to
work. Overall company morale increases and people are motivated to come to work and do a
good job. Additionally, when employees know there are bonuses or commissions, they are
increasingly motivated to deliver grander results.
Boost employee loyalty. When employees are being paid well and are happy, they're likely to
stay with the company. Proper compensation is one factor why employees remain with
employers. Loyalty means that business owners don't need to continue to spend time, money and
energy on recruiting new candidates. Employee retention and low-turnover rates are great for
employers who cultivate a team that knows what to do.
Increased productivity and profitability. Happy employees are productive employees.
Productivity in relation to compensation starts with employees feeling valued which increases
motivation and loyalty. Not only are employees more motivated to do a good job, but also, the
longer people are with the company, the more they know and the more efficient they become.
Job satisfaction so people stay. Creating the right compensation plan leads to stronger job
satisfaction. The right compensation plan includes benefits, along with all the other bonuses
available. Employees often boast about holiday bonuses or they keenly watch how the company
stock performs because they have stock options. The right compensation program invests
employees into the work being done, which gives them a stronger sense of satisfaction when the
company succeeds.
7.2. Factors Affecting Compensation
1. Internal factors
The internal factors exist within the organization and influence the pay structure of the company.
These are as follows:
(i) Ability to pay- The prosperous or big companies can pay higher compensation as compared

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to the competing firms whereas the smaller companies can afford to maintain their pay scale up
to the level of competing firm or sometimes even below the industry standards.
(ii) Business strategy- The organization’s strategy also influences the employee compensation.
In case the company wants the skilled workers, so as to outshine the competitor, will offer more
pay as compared to the others.
(iii) Job evaluation and performance appraisal- The job evaluation helps to have a
satisfactory differential pays for the different jobs.
(iv) Employee- The employee or a worker himself influences the compensation through
performance, experience, and potential.
2. External Factors
The factors that exist out of the organization but do affect the employee compensation in one or
the other way. These factors are as follows:
(i) Labor market- The demand for and supply of labor also influences the employee
compensation. The low wage is given, in case, the demand is less than the supply of labor.
(ii) Going rate- The compensation is decided on the basis of the rate that is prevailing in the
industry, i.e. the amount the other firms are paying for the same kind of work.
(iii) Productivity- The compensation increases with the increase in the production. Thus, to earn
more, the workers need to work on their efficiencies that can be improved by way of factors
which are beyond their control.
(iv) Cost of living- The cost of living index also influences the employee compensation, in a
way, that with the increase or fall in the general price level and the consumer price index, the
wage or salary is to be varied accordingly.
(v) Labor unions- The powerful labor unions influence the compensation plan of the company.
(vi) Labor laws- There are several laws passed by the Government to safeguard the workers
from the exploitation of employers. Thus, there are several internal and external factors that
decide the amount of compensation to be given to the workers for the amount of work done.
7.3. Employee Benefits and Service
Employee benefits’ are the non-cash items provided by employers as part of the total
remuneration package offered to their employees; the employee benefits’ package covers
everything except the employee’s wages or salary, commission and bonus.
Typical employee benefits include:

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 Annual leave and time off

As an employer you are legally obliged to offer a statutory level of paid holiday entitlement
which is based on the length of time an employee is contracted to work during the year.
 Pensions
Membership of a company or workplace pension scheme has long been a popular employee
benefit particularly with large companies and public bodies although the latter sometimes
use it to compensate workers in lieu of pay increases.
 Life Assurance, critical Illness and income protection
Dying, becoming seriously ill or not being able to work as a result of illness or injury often
brings severe financial consequences that can affect both the person and their dependents.
 Healthcare and health benefits
As an employer, you are free to offer your employees membership of an occupational sick
pay scheme which may, if you choose, be sufficiently generous to pay their salary or wages
in full for a period of time.
 Company cars and car allowances
Many organizations provide a company car either because it’s required to do the job or as a
‘perk’ that recognizes an individual employee’s status. To overcome the hassle of being
responsible for a fleet of vehicles, many employers prefer to pay a cash allowance to
employees to assist with their buying or leasing of a vehicle or compensate them with a
mileage allowance if they use their own.
 Other benefits
Other benefits offered include childcare benefits such as childcare vouchers or workplace
crèches; flexitime; cigarette breaks; free or subsidised staff canteens; on-site car parking;
gym membership; subsidised or free travel; dress-down days; ‘health and wellness’
allowances; homeworking; cycle-to-work scheme loans; time-off for sabbaticals; season
ticket loans and discounts against your products and services.
7.4 Comparable worth Controversy (Reading assignment)
Comparable worth focuses on the worth that a position has to a company. This means that two
very different professions within one organization could be found to have the same value. For
example, an accountant and an engineer may be found to deliver the same value to the company,
based on the review metric.

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It is also known as “pay equity,” is a way for companies to set employee salaries by ranking the
value of comparable skills and responsibilities across professions, regardless of sex. The term,
which first surfaced in the 1970s, is aimed at leveling the playing field between men and women,
regardless of job title.
Comparable worth focuses on the worth that a position has to a company. This means that two
very different professions within one organization could be found to have the same value. For
example, an accountant and an engineer may be found to deliver the same value to the company,
based on the review metric. Therefore, both would be compensated equally if comparable worth
were applied.
This helps fight the practice in which jobs predominantly held by men have been paid higher
than jobs held predominantly by women. Note that when comparable worth discussions emerged,
concern about pay discrimination focused on differences based on biological sex and did not
include pay differences experienced by non-binary or gender-fluid individuals.
Proponents argue that comparable worth is an extension of equal pay for equal work. Critics,
however, argue that is too simplistic a view and would hurt the free market by setting wages
across unrelated professions based on arbitrary value parameters instead of apples-to-apples
comparisons.

CHAPTER 8: INTEGRATION AND MAINTAINACE

8.1. Employee Discipline
Employee Discipline Management (EDM) can be introduced as a very important HRM function.
It is defined as a systematic process of controlling and influencing all employees in the organization to
achieve and maintain standards of behaviour (rules of behaviour, alternatively the code of behaviour at
work) in order to accomplish organizational goals and objectives. It is viewed as formulation,
implementation and on-going maintenance of a fair and constructive discipline system for controlling
human behaviour.
Hence, discipline is essential not only for the success of general life of a person but also for the
success and progress of success of an organization. Discipline' involves the following aspects.
i. A condition where employees respect for rules and standards of acceptable behaviour.
ii. To make employees obey rules of behaviour.
iii. To punish employees when they do not obey rules of behaviour.
iv. Managerial action encouraging employees to comply with standards of the organization.

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v. A form of training to enforce organizational rules.

Any organization, whether private or public has goals to be achieved. An organization may have
established goals such as increasing net assets of owners, maximizing customer satisfaction,
achieving institutional growth, improving market share, achieving financial stability and so on.
In order to achieve the organizational goals proper employee discipline is of very importance.
The existence of a good organization becomes necessary for all the stakeholders such as owners,
managers, workers, suppliers, customers, investors and even the government.
Hence it becomes necessary that all the employees (managers and non-managers) in an
organization adhere to the rules about work behaviour. The basic purpose of discipline is to
encourage employees to behave sensibly at work by adhering to rules.
Rules refer to official instructions in respect of what employees must and are allowed to do and
what employees are not allowed to do. For instances, ‘to start working at 8.00 a.m.’ is an official
instruction the employees must follow and ‘not to smoke within the factory' is an official
instruction that employees are not allowed to do.
Here the term 'rules' has a broad meaning that includes essential job performance standards,
standards of conduct and attendance, regulations, policies and procedures to be followed in
carrying out various organizational activities as well. In general rules are made to protect the
organizations from indiscipline behaviour of employees.
8.2. Labor Relation
Labor relations are the study and practice of managing unionized employment situations. In
academia, labor relations is frequently a subarea within industrial relations, though scholars from
many disciplines--including economics, sociology, history, law, and political science--also study
labor unions and labor movements.
In practice, labor relations are frequently a subarea within human resource management. Courses
in labor relations typically cover labor history, labor law, union organizing, bargaining, contract
administration, and important contemporary topics.
Employee & Labor Relations serves as a professional resource to managers, supervisors and
employees for work related issues, serves as a liaison to labor unions, and represents the
organization in employment matters.
Labor Relations Services
 Handling grievances and conflict resolutions through arbitrations, mediation and

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settlement agreements,
 Terminations
 Unfair labor practices and violation of labour law,
 Union Bargaining & Relationship management,
 Contract interpretation and administration, etc.

8.3. Collective Bargaining

Collective bargaining is a process whereby organized labor and management negotiate the terms
and the conditions of employment. Let us explore some definitions from different sources:
“Collective bargaining is a method by which trade unions protect and improve the condition of
their member’s working lives.”
According to Flanders “Collective Bargaining as a means of joint regulation.” According to ILO,
(convention no: 87) “Collective Bargaining is a fundamental right. The right to Collective
Bargaining forms an integral part of the ILO declaration on fundamental Principles (1998).”
OECD (Organization for Economic Co-operation and Development), WTO (World Trade
Organization) and the United Nations advocates Collective Bargaining in similar tones.
Collective Bargaining is a part of “Core Labor Standards, Social clause and Global Compact
respectively” This means future that Collective Bargaining should be considered as a
Fundamental Right.
Today collective bargaining has assumed a complex nature, conducted in the most formal
environment, associating the services of a large number of experts, legal practitioners,
consultants and specialized personnel. Today it is regarded as a social process, because it occurs
in a social setting.
In majority of the cases collective bargaining process deals with issues like:
o Rate of wages, pay,
o Hours of employment,
o Working conditions,
o Employment policies, and
o Productivity settlement.
Advantages of Collective Bargaining
To understand the collective bargaining it is necessary to know about the various advantages of
collective bargaining, these are:
o Collective bargaining has the advantage of settlement through dialogue and consensus

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rather than through conflict and confrontation.

o Collective bargaining agreements often institutionalize settlement through dialogue.
o Collective bargaining is a form of participation because it involves a sharing of
rulemaking power between employers and unions.
o Collective bargaining agreements sometimes renounce (reject) or limit the settlement of
disputes through trade union action.
o Collective bargaining is an essential feature in the concept of social partnership towards
which labor relations should strive. Social partnership in this context may be described as
a partnership between organized employer institutions and organized labor institutions
designed to maintain non- confrontational process in the settlement of disputes which
may arise between employers and employees.
o Collective bargaining has a valuable by- products relevant to the relationship between the
two parties.
o In societies where there is a multiplicity of unions and shifting union loyalties, collective
bargaining a consequent agreements tend to stabilize union membership.
o Collective bargaining is the most important and effective in improving industrial
relations.
8.4. Grievance Handling
Grievance is formal complaint which demonstrates any kind of dissatisfaction in an employee,
arising out of the factors which are related to his job. The communication of grievances should
be done formally.
It can be communicated via a written document or an E-mail.
The organizations which allow the employees to see the top level executives directly with their
grievances are called to have “Open Door Policy”. Many of the lower level employees do not
find it very comfortable to approach the top executives directly.
The organizations in which the employee is required to talk to his immediate senior about his
grievances, which either offers a solution or escalates the grievance, are called to have “Step
Ladder Policy” for grievance handling.
Importance of Grievance Handling
Grievance handling process gives the aggrieved employees an opportunity to communicate their
feelings and problems to the concerned people. These people can then address the grievances as

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per the policies.

A good grievance handling system brings following benefits to the organization:
a.) It develops the trust of employees in the organization, its motives and policies
b.) It helps in addressing the employee’s problems before they become too big
c.) It helps in improving the overall work conditions and atmosphere
d.) It helps in developing a committed work force and improving the productivity
e.) It helps in identifying the areas of improvement and taking the required actions
Causes of Grievances
The factors causing the grievance can be divided into three:
i. Grievances due to management policies can be sub-divided into:
a. Salaries
b. Overtime
c. Leave policies
d. Lack of growth in career
e. Conflicts in the roles
f. Unmatched skills and responsibilities
g. Disciplinary action
ii. Grievances due to working conditions can be sub-divided into:
a. Unhygienic work environment b. Safety issues
c. Insufficient equipment d. Indiscipline and wrong approaches to discipline
e. Unrealistic expectations f. Transfer
iii. Grievances due to interpersonal factors can be sub - divided into:
a. Inability to get along with superiors
b. Poor relations with team members
c. Ego
d. Impractical approach to life
Steps of Grievance Handling
The important steps in grievance handling procedure are:
 Accepting the grievance and acknowledging it
 Carefully listening the problem

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 Understanding the redefining the problem to ensure that both the parties are at the same
level of understanding
 Gathering the information – all facts and figures.
 Offering the best solution
 Follow up
The Effects of Grievances
Grievances take the form of collective disputes when they are not resolved. Grievance affects
employees, management and work and its effects are:
Effect of grievance on employees
i.) Frustration ii.) De-motivation
iii.) Aloofness (unfriendliness/ feeling alienated) iv.) Low productivity
On the Management
i.) Labor unrest ii.) Absenteeism
iii.) Indiscipline iv.) High labor turnover
On Work
i.) Low productivity
ii.) High wastages
iii.) Increased costs
CHAPTER NINE: PROMOTIONS TRANSFERS AND SEPARATION
Promotions: means an improvement in pay, prestige, position and responsibilities of an
employee within his or her organization.
Transfer: involves a change in the job (accompanied by a change in the place of the job) of an
employee without a change in the responsibilities or remuneration.
Demotion: the permanent movement of a staff member from one position in one job class to a
position in another job class of decreased responsibility or complexity of duties and in a lower
salary range.
Separation: Lay-offs, resignations and dismissals separate employees from the employers.
9.1. Purpose of Transfer
Transfer is a process of placing employees in positions where they are likely to be more effective
or where they are to get more job satisfaction. In transfers, there is no change in the
responsibility, designation, status or salary. It is a process of employee's adjustment with the

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work, time and place.

The need for making transfer is listed below.
a. To meet organizational needs. Changes in technology, volume of production, production
schedule, product line, quality of products, organizational structure, etc. necessitate an
organization to reassign jobs among employees so that right employee is placed on the right job.
b. To satisfy employee needs. Employees request for transfer due to personal problems like
health, family circumstances, and interpersonal conflicts may also necessitate transfer.
c. To better utilize employee. When the management thinks that his/her capabilities would be
utilized better elsewhere, he/she may be transferred to other job.
d. To make the employee more versatile. In some organizations like banks, employees after
working on a job for a specified period are transferred to other job with a view to widen their
knowledge and skill and also reduce monotony. This is also called ‘job rotation.
e. To adjust the workforce. Work force can be transferred from the departments / plants where
there is less work to the departments/plants where more work is.
f. To provide relief. Transfers may be made to give relief to the employees who are
overburdened or doing hazardous work for long period.
g. To punish employee. Management may use transfer as an instrument to penalize employees
with undesirable activities. As a disciplinary action, employees are transferred to remote areas.
9.2. Types of Promotion
A. Promotion by seniority
In a straight seniority system, employees advance to higher positions as vacancies occur.
Advantage
o Employees get to experience many jobs on the way up the promotional ladder, provided
that they stay long enough and openings develop.
o Cooperation between workers is generally not hindered by competition for subjectively
determined promotions.
o Workers need not seek to gain favor with supervisors (through non-productive means) to
obtain advancement.
Disadvantage
o Some employees may not be able or want to do certain jobs into which a strict seniority
system would propel them.

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o Employee motivation to work as well as possible is not reinforced.

o New employees would be underrepresented in higher levels for a long time (since they
are the last hired and have least seniority).
o Employers would tend to hire over skilled people at entry level, so they have the capacity
for promotion.
B. Promotion by Merit
Promotions based on merit advance workers who are best qualified for the position, rather than
those with the greatest seniority. When employees are applying for a position, a worker’s past
performance is also considered.
An organization seeking to promote employees may do so based on seniority to take advantage
of the employees' experience with the organization and to reward them for their loyal service.
Another option is merit-based promotion, which measures and rewards employees' contributions
based on performance. Each method of merit vs. seniority offers potential advantages and
disadvantages for the organization.
Effective performance appraisal helps build trust in the system. An organization seeking to
promote employees may do so based on seniority to take advantage of the employees' experience
with the organization and to reward them for their loyal service. Another option is merit-based
promotion, which measures and rewards employees' contributions based on performance.
9.3. Reason for Transfer
Every organization has a defied criteria for the transfer of employees, and it also varies from
individual to individual. The primary reasons for employee transfer are mentioned here:
a. Some positions require distinctive skills, competency, and expertise.
b. The transfer is also affected when there is a shortage of employees in one department of the
organization due to high demand, and there are surplus employees in another department. So, the
workers are shifted from one department to another.
c. It is also initiated when there are some clashes between the superior and subordinate or
between two workers.
d. To break the monotony of the work, employees are transferred, as the employee productivity
of an employee decreases by doing the same job again and again.
e. An employee may request the human resource department, to transfer him to another location,
due to health issues because the climate is not suitable for his/her health.

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f. Female employees commonly request a transfer when they get married, and they have to live
with their spouses. The transfer may be requested by the employee himself or by his immediate
boss (superior) or by the manager of another department
9.4. Types of Transfer
Type # 1. Production Transfer. Employees are posted in different departments, based on their
interests and qualifications. This also depends on the work load that a department possesses.
Type # 2. Replacement Transfer. When an employee leaves a department for a particular reason,
the department needs a replacement. In such scenarios, especially in demanding situations, a
senior employee might have to function in place of the junior employee, till the time a
replacement is found.
Type # 3. Versatility Transfer. Some organizations believe that the workforce needs to have
multiple skills capable to perform multiple tasks. People can achieve multiple skills only by
working in different departments.
Type # 4. Shift Transfer. In order to enhance capacity utilization, industrial organizations, operate
in multiple shifts generally morning, evening, and night shifts.
Type # 5. Remedial Transfer. It is an act of transferring an employee to a more suitable job after
they have failed to perform well in their present position. Poor performance could be attributed
to employees’ health problem or other reasons.
9.5. Types of Separation
Employees may be separated for a variety of reasons like retirement, resignation, suspension,
discharge, dismissal and layoff.
1. Retirement: It the major cause of separation of employees from the organization. It can be
defined as the termination of service of an employee on reaching the age of superannuation.
Retirement may be of two types:
(i) Compulsory Retirement:
This is the retirement when employees retire compulsorily from service on attaining the age of
superannuation.
(ii) Voluntary Retirement:
When organizations give option to its employees to retire even before superannuation, it is called
‘voluntary retirement’.
2. Resignation: is termination of service by an employee by serving a notice, called ‘resignation’
on the employer. Resignation may be voluntary or involuntary. A voluntary resignation is when
an employee himself/herself decides to resign on the grounds of ill health, marriage, better job
prospects in other organizations, etc.
3. Layoff: implies denial of employment to the employees for reasons beyond the control of

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employer. Breakdown of machinery, seasonal fluctuations in demand, shortage of power, raw

materials, etc. are the examples of reasons leading to layoff.
4. Retrenchment: means permanent termination of an employee’s services for economic
reasons. Retrenchment occurs on account of surplus staff, poor demand for products, general
economic slowdown, etc. It’s worth noticing that termination of services on account of
retirement, winding up of a business, illness or on disciplinary grounds does not constitute
retrenchment.
5. Dismissal: is termination of service of an employee as a punitive measure. This may occur
either on account of unsatisfactory performance or misconduct. Persistent failure on the part of
employee to perform up to the expectations or specified standard is considered as unsatisfactory
performance.

CHAPTER TEN - SEXUAL HARASSMENT IN WORK PLACE, E- HUMAN

RESOURCE MANAGEMENT &EMPOWEREMENT
10.1. Equal Employment Opportunity

Equal employment opportunity) is the idea that everyone should be treated fairly when they’re
considered for various employment decisions (including hiring, promotion, termination,
compensation, etc.). This means, for example, that anyone competing for a position at a company
should have the same chances of succeeding if they’re right for the job.
It is fair treatment in employment, promotion, training, and other personnel actions without regard to race,
color, religion, sex, age, national origin, and physical or mental disability

10.2. Types of Sexual Harassment in Workplace

Sexual harassment is an unwelcome sexual advance, unwelcome request for sexual favours or
other unwelcome conduct of a sexual nature which makes a person feel offended, humiliated
and/or intimidated, where a reasonable person would anticipate that reaction in the
circumstances.

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Capturing image of private area of another person; distributing, disclosing, displaying,

transmitting or publishing image of private area of another person; penalties; exceptions;
confidentiality of image.
Stalking is a form of mental assault, in which the perpetrator repeatedly, unwantedly, and
disruptively breaks into the life-world of the victim, with whom they have no relationship (or no
longer have).
Threaten employees about employment: an ideal workplace represents a safe and comfortable
environment for all employees. Sometimes, you may encounter behaviors that make you feel less
comfortable, such as threatening statements or actions from a colleague.
Humiliation can be defined as an action of dishonor, embarrassment, or causing shame to a
person. Humiliating hurts a person very deeply, and it affects a person mentally. Workplace
bullying (intimidation/ mistreatment) has become very common.
Physical contact and advances: unwanted or unwelcome sexual advances are expressions of
romantic or sexual interest that are unwelcome, unreciprocated, unpleasant, or offensive to those
targeted by the sexual advances.
Demand or request for sexual favours: If anyone asks for or demands any sexual favours from a
person without their consent and despite their disinterest, then it is a crime.
Bullying: a bully is a person who harasses, abuses, intimidates, or coerces people, especially
those with less power than they have or those considered weaker or vulnerable in some way.
Subjecting to prejudice: prejudice is an unreasonable dislike of a particular group of people or
things, or a preference for one group of people or things over another.
Creating hostile work environment: A hostile work environment is one where the words and
actions of a supervisor, manager or coworker negatively or severely impacts another employee’s

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ability to complete their work.

Discriminatory attitude: These types of attitudes can be expressed as "isms" (ageism, sexism,
racism, etc.) and refer to a way of thinking about other persons based on negative stereotypes
about race, age, sex, etc.
Making sexually colored remarks: sexual harassment includes such unwelcome sexually
determined behaviour ... demand or request for sexual favours;.
Showing pornography. "Pornography" (or "porn") usually refers to representations designed to
arouse and give sexual pleasure to those who read, see, hear, or handle them.
10.3. Prevalence of Sexual Harassment
It is difficult to quantify the experience of sexual harassment in the workplace because:
(1) there is no universal definition of what constitutes sexual harassment,
(2) men and women have varying perceptions of what sexual harassment means and
(3) many victims of sexual harassment are reluctant to report their experiences.
Low reporting rates are a result of fear of retaliation from employers, concern for the harasser,
shame, and/or fear of being blamed for the harassment.
10.4. Effects of Sexual Harassment
Victims of sexual harassment can suffer significant psychological effects, including anxiety,
depression, headaches, sleep disorders, weight loss or gain, nausea (sickness), lowered self-
esteem and sexual dysfunction.
Everyone is affected by sexual harassment since it creates an atmosphere that makes it difficult
for employees to perform. The following are some of the potential consequences of workplace
sexual harassment.
i) Emotional and physical issues. Physical and mental wellbeing are inextricably intertwined.
Loss of appetite, weight changes, and sleep difficulties are all physical health issues. Sleep
deprivation may lead to a variety of major health issues, including:
 hormone instability,
 an elevated risk of high blood pressure, and
 a weaker immune system.

Sexual harassment victims frequently experience mental and behavioral consequences, such as
anxiety, sadness, and nervousness. They frequently have low self-esteem and assertiveness.
ii) Decreased company productivity. Sexual harassment victims and survivors are far more
likely to leave, resulting in significant employee turnover and increased hiring and training costs.

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Decreased company productivity may be resulted due to:

 Absenteeism,
 Reduced performance,
 High employee turnover,
 Bad morale, and
 Legal costs associated with sexual harassment.

iii) Financial challenges. Sexual harassment not only harms one's health, but it also harms one's
finances. Sexual harassment can have a negative impact on a victim's work performance and
career path. Some people retreat from the job and detach from coworkers due to fear and low
confidence.
iv) Brand name and reputation. The failure of a firm to appropriately prevent and respond to
sexual harassment can lead to costly lawsuits (complaints/ grievances).

10.5. Remedies
Process by which women gain power and control over their own lives and acquire the ability to
make strategic choices. Women’s empowerment has five components:
 women’s sense of self-worth;
 their right to have and to determine choices;
 their right to have access to opportunities and resources;
 their right to have power to control their own lives, and
 their ability to influence the direction of social changes.
Remedies in sexual harassment in the workplace can be effective by:
 Informing employees that harassment is prohibited;
 Identifying who employees should contact to discuss harassment questions or concerns;
 Assuring employees that they are not be punished for sharing their concerns;
 Responding to harassment questions or concerns and investigating harassment
complaints promptly and effectively; and
 Ensuring that managers understand their responsibility to prevent harassment.
10.6. Tips on E- Human Resource Management
E-HRM, or electronic, human resource management, processes and transmits digitized HR

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information. E-HRM is the application of IT for HR practices that enable easy interactions
between employees and employers.
So, the tips (guidelines) of E-HRM are discussed below.
 E-HRM is the planning, implementation, and application of information technology for
both networking and supporting at least two individual or collective actors in their shared
performing of HR activities.
 E-HRM is not the same as HRIS, which refers to ICT systems used within HR
departments. It is different from that of Virtual HRM.
 E-HRM is a network-based structure built on partnerships and typically mediated by
information technologies.
 E-HRM is, in essence, the devolution of HR functions to management and employees.
 They access these functions typically via intranet or other web-technology channels.
 It is a system used to acquire, store, manipulate, analyze, retrieve, and distribute
information regarding an organization’s human resources.

10.7. Workforce Diversity Management

Workplace diversity management is an organizational process to promote diversity and inclusion
in the workplace. This process includes the implementation of policies and strategies in the areas
of employment, management, training, etc.
Broadly speaking, there are four types of diversity: internal, external, organizational, and
worldview.
Internal diversity
Internal diversity refers to any trait or characteristic that a person is born with. These might
include sex, race, ethnicity, gender, sexual orientation, nationality, or physical ability. You may
recognize many of these as protected characteristics that is, attributes specifically covered under
the Universal declaration of Human Rights.
External diversity
External diversity includes any attribute, experience, or circumstance that helps to define a
person’s identity but is not something that they were born with. Examples include socioeconomic
status, education, marital status, religion, appearance, or location. These characteristics are often
influenced by others and may change over time. They’re considered external since they can be
consciously changed.

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Organizational diversity
Differences in job function, work experience, seniority, department, or management level are
referred to as organizational diversity. Often, entire departments or levels of a company can be
homogeneous that is, everyone looks the same, comes from the same background, or has the
same experience.
Worldview diversity
Finally, worldview diversity encompasses a broad range of beliefs, political affiliations, culture,
and travel experiences. Our worldview, or our perspectives, contributes to an innovative,
inclusive work environment that is forward-focused. Anything that influences the way we
interpret and view the world is part of worldview diversity.
Diversity isn’t just a conversation for others. Everyone has something that makes them different.
Whether it's a unique upbringing, educational background, way of thinking, or perspective on the
world, we all bring our own strengths to the table. A diverse and inclusive organization is one
that is at the forefront of innovation and social change.
10.8. HIV and Workplace
HIV/AIDS results in increased costs to the employer and decreased productivity through the loss
of skilled and experienced workers and consequential recruitment and training of new
employees. Reduced productivity at the level of the firm has a negative impact on a country’s
competitiveness and economic growth.
Workers and impoverished families result in a contracting consumer base and falling demand for
goods and services and can further undermine investment and enterprise development. The
demands made on the social protection systems and national health services as a result of
treatment and care of HIV positive persons often limit the investment capacity and choices of
national budgets, inhibiting development agendas.
The International Labour Organization (ILO) Code of Practice on HIV/AIDS and the world of
work identifies ten key principles that should be core to any comprehensive workplace strategy
to protect the rights at work of infected and affected workers.
The ILO Code: 10 Key Principles
i) Recognition of HIV/AIDS as a workplace issue
ii) Non-discrimination on the basis of real or perceived HIV status
iii) Gender equality must be an integral consideration in a workplace response

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iv) Healthy work environment for all concerned parties

v) Social dialogue in developing and implementing a workplace strategy
vi) No screening for purposes of exclusion from employment
vii) Confidentiality of HIV-related personal information
viii) Continuation of employment relationship
ix) Prevention strategies in the workplace
x) Care and support for infected and affected workers
In 2007, ILO’s constituents decided that the time had come to raise the HIV response in the
world of work to a different level through the development and adoption of an international
labour standard on HIV and AIDS and the world of work, The aim was to ensure optimal
utilization of the potential of the workplace in the global, regional and national responses towards
universal access to prevention, treatment, care and support.
In addition, firms experience decreased revenues as a result of higher absenteeism and staff
turnover, reduced productivity, declining morale and a shrinking consumer base.
10.9. Workforce Empowerment
Workforce empowerment means bestowing employees with autonomy, self-direction and tools to
get the job done. Empowered employees are not only happier with their work, but also productive
in an organization.
Implementing workforce empowerment for better results
When it comes to empowering your employees, there are three key ingredients that ultimately
help drive better results:
 Autonomy
 Trust
 Communication
Increasing employee autonomy means providing a clear statement of what needs to be done,
giving employees everything they need such as work devices and enterprise applications to get
started and then getting out of the way.
Good managers know that some directing and coaching is required, but at the end of the day, the
goal is to make sure your team has the authority to make decisions and complete tasks on their
own. When workers feel they can make decisions as they see best, they can focus their energy on
accomplishing objectives and thinking creatively.

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Another central concept of workforce empowerment is trust, the belief that employees can be
counted on to work hard and make good decisions. Heavy-handed supervision or micro-
management has no place in an empowered workplace; instead, effective managers focus on
providing constructive feedback and encouragement.
The need for good communication cannot be overstated. While communication and trust are
important, autonomy is as well and today, a big part of that is letting employees do their work
wherever they want. In the past, all employees worked together at the office, where planned
meetings and spontaneous discussions happened regularly.
For companies, keeping employees connected and empowered in today’s modern workplace is a
challenge, but using the right technology solutions to help empower a workforce with autonomy,
trust, and communication makes it easier.

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