Human Resource Management Full Notes

HUMAN RESOURCE MANAGEMNT
UNIT 1
Versatile Business School, Egmore, Chennai - 600 008

SYLLABUS
 UNIT I
Introduction- Meaning- scope- objective- functions- policies & roles
and importance of Human Resource Management- Interaction with
other functional areas-HRM &HRD a comparative analysis- Human
Resource Management practices in India.

DEFINITION
 According to Edwin Flippo,
"Personnel Management is the
planning, organising, directing and
controlling of the procurement,
development, compensation,
integration and maintenance of
people for the purpose of contributing
to organizational, individual and
social goals".

SCOPE OF HUMAN RESOURCE
MANAGEMENT
 HRM in Personnel Management
 HRM in Employee Welfare
 HRM in Industrial Relations
SCOPE OF HRM

HRM IN PERSONNEL MANAGEMENT
 Manpower planning
 Hiring (recruitment and selection)
 Training and development
 Induction and orientation
 Transfer
 Promotion
 Compensation
 Layoff and retrenchment

HRM IN PERSONNEL MANAGEMENT
 Employee productivity
 Performance appraisal
 Developing new skills
 Disbursement of wages
 Incentives, allowances
 Traveling policies and
procedures
 Other related courses of actions.

HRM IN EMPLOYEE WELFARE
 Working conditions and
amenities at workplace
 Safety services, health
services, welfare funds, social
security and medical services
 Safety officers
 Eliminating workplace
hazards,
 Support by top management,
 Job safety,

HRM IN EMPLOYEE WELFARE
 Safeguarding machinery,
 Cleanliness, proper
ventilation and lighting,
 Sanitation,
 Medical care,
 Sickness benefits,
employment injury benefits,
 Maternity benefits,
 Unemployment benefits and
family benefits

HRM IN INDUSTRIAL RELATIONS
 Addressing grievances
and settling disputes
 Maintain peace and
harmony in the
organization
 Maintaining work
relations

FEATURES OF HRM
 As part of Management Discipline: Draws heavily from
management concept, principles, and techniques
 As a Process: Planning, organizing, directing and controlling
 As a continuous process: Requires a constant alertness and
awareness of human resources
 Directed towards Achievement of Objectives: Concerned with
people in the organization both present and potential
 Universal Existence: Relevant to all functional areas of
business

OBJECTIVES OF HRM
OBJECTIVES
SOCIETAL
ORGANIZATIONAL
FUNCTIONAL
PERSONAL

FUNCTIONS OF HRM
FUNCTIONS OF
HRM
PROCUREMENT
OF MANPOWER
T&D
COMPENSATION
AND REWARD
INTEGRATION OF
INTERESTS
MAINTENANCE
OF MANPOWER
WELFARE
FACILITIES
MISCELLANEOUS
FUNCTIONS

MANAGERIAL FUNCTIONS OF HRM

OPERATIONAL FUNCTIONS OF HRM

ROLE OF HRM
 Advisory Role Personnel Policies
Personnel Procedures
 Service role
 Audit role
 Consultancy role
 Facilitator role

HUMAN RESOURCE POLICY
 Policy is predetermined course of action established to guide
the performance of work towards accepted objectives.
 In Organizational context “Policy is a statement or general
understanding which provides guidelines to member of the
organization for making decision in respect to any course of action.
 Business Policy defines the scope or spheres within which decisions
can be taken.

CHARACTERISTICS OF SOUND HR POLICIES
 Relationship to organizational objectives
 Planned formulation
 Fair amount of clarity
 Consistency
 Balanced
 Written
 Communication

CHARACTERISTICS OF SOUND HR POLICIES
 Specific
 Clear
 Reliable/Uniform
 Appropriate
 Simple
 Comprehensive
 Flexible
 Stable

OBJECTIVES OF HR POLICY
 To enable the organization to have adequate, competent and
trained personnel at all level.
 To provide such conditions of employment that enable the
personnel to develop a sincere sense of unity with the
organization and to carry out their duties in the most willing
and effective manner.

OBJECTIVES OF HR POLICY
 To develop conditions for mutual trust and cooperation between
those who manage and who are managed at all levels.
 To establish condition for developing personnel and utilization of
their full potential for their own and the organization.
 To provide and create a sense of responsibilities, fundamental rights
of the employees and their dignity to those who directly deal with
human resources.

TYPES OF POLICIES
ORIGINATED
POLICIES
IMPOSED
POLICY
APPEALED
POLICY
SPECIFIC
POLICY

TYPES OF POLICIES
 Originated policies: Made by top Management.
 Appealed policies: Made on request to certain situation, or
if certain aspects are missing in the main policy.
 Imposed policies: Imposed by Govt & authorities.
 Specific Policy: Related to specific issues like Recruitment,
Transfer, Promotion etc.,

ROLES AND RESPONSIBILITIES OF HR MANAGER
 Humanitarian Role: Reminding moral and ethical obligations
to employees
 Counselor: Consultations to employees about marital, health,
mental, physical and career problems.
 Mediator: Playing the role of a peacemaker during disputes,
conflicts between individuals and groups and management.
 Spokesman: To represent of the company because he has
better overall picture of his company’s operations.

ROLES AND RESPONSIBILITIES OF HR MANAGER
 Problem Solver: Solving problems of overall human
resource management and long-term organizational
planning.
 Change Agent: Introducing and implementing
institutional changes and installing organizational
development programs
 Management of Manpower Resources: Broadly
concerned with leadership both in the group and
individual relationships and labor-management relations.

HUMAN RESOURCE DEVELOPMENT(HRD)
 Human resource development (HRD) is a system of
developing in a continuous and planned way the
competencies of individual employees, groups, team and
the total organization to achieve objectives
 Definition :
“HRD is a process of organizing and enhancing the
physical, mental and emotional capacities of individuals
for productive work”

FEATURES OF HRD
Focus on
Human
resource
Development
at four level
Continuous
and planned
process

PROCESS OF HRD
Existential
process
Coping
process
Empathic
process
Building
process
Collaborative
process
Growth
process
Operates at the
individual level
Operates at the
Level of role
of an individual
operates at the
interactive level of
2 or more individuals
operates at
the group level
operates at the
Inter groups level
growth process
operates at the
system(i.e) department

HRM VS. HRM
 HRM deals with all aspects of
the human resources function
 HRM is concerned with
recruitment, rewards among
others
 HRM functions are mostly
formal
 HRD is a sub section of HRM
 HRD only deals with the
development part
 HRD functions can be informal
like mentorships
HUMAN RESOURCE
MANAGEMENT
HUMAN RESOURCE
DEVELOPMENT

CHALLENGES OF HRM IN INDIAN ECONOMY
Globalization
Changing Demographics of Workforce
Changed employee expectations
New Industrial Relations
Renewed People Focus
Managing the Managers
Contribution to the success of organizations
Weaker Society interests
Corporate Reorganization

STRATEGIC HUMAN RESOURCE
MANAGEMENT
 Strategy:
A method or plan chosen to bring about a desired future, such
as achievement of a goal or solution to a problem.

STRATEGIC MANAGEMENT
 Strategic Management:
“A Process of formulating, implementing and evaluating business
strategies to achieve organizational objectives is called Strategic
Management”
 Definition of Strategic Management:
“Strategic Management is that set of managerial decisions and
actions that determine the long-term performance of a corporation.
It includes environmental scanning, strategy formulation, strategy
implementation and evaluation and control.

STEPS IN STRATEGIC MANAGEMENT
Evaluation &
Control
Strategy
Implementation
Strategy
Formulation
Environmental
Scanning

IMPORTANCE & BENEFITS OF STRATEGIC
MANAGEMENT
 Allows identification, prioritization and exploration of
opportunities.
 Provides an objective view of management problems.
 Represents framework for improved co-ordination and control
 Minimizes the effects of adverse conditions and changes
 Allows more effective allocation of time and resources

IMPORTANCE & BENEFITS OF STRATEGIC
MANAGEMENT
 Allows fewer resources and lesser time devoted to correcting
ad hoc decisions
 Creates framework for internal communication
 Helps to integrate the individual behaviors
 Provides basis for the clarification of responsibilities
 Encourages forward thinking
 Encourages favorable attitude towards change.

ROLE OF HRM IN STRATEGIC
MANAGEMENT
 Role in Strategy Formulation
 Role in Strategy Implementation

STRATEGIC CHOICES
Change
Management
Values
Maximize
productivity
and
efficiency
Activities
directed to
competence
building

UNIT I ASSIGNMENT
 Assignment:
 HRM-Interaction with other functional areas
Part-I
 Presentation (Individual)
 Short written report
Part-II
 Role Play (Team work)
 Documentary

HUMAN RESOURCE MANAGEMENT
UNIT II

SYLLABUS
 UNIT II
Human Resource Planning- Definition objectives-
process and importance Job analysis-Description-
specification & job evaluation.

HUMAN RESOURCE PLANNING
 Human Resource planning is process of striking the balance
between human resource required and acquired in an organization
 HRP is a process by which an organization determines how it
should acquire the manpower needed to achieve the organizational
goals
 HRP help the organization have the right number and kind of
people at the right place and right times achieve the organizational
goals

DEFINITION
 “HRP includes estimation of how many qualified people are necessary to
carry out the assigned activities, how many people will be available, and
what, if anything, must be done to ensure personnel supply equals personnel
demand at the appropriate point in the future”
 “HRP is a Process, by which an organization ensures that it has the right
number and kind of people at the right place, at the right time, capable of
effectively and efficiently completing those tasks that will help the
organization achieve its overall objectives”

NEED & IMPORTANCE OF HRP
 Forecast future personnel needs
 Cope with change
 Creating highly talented personnel
 Protection of weaker sections
 International strategies
 Increasing investments in HR
 Resistance to change & move

Environment
Organizational objectives and policies
HR supply forecastHR needs forecast
HR Implementation
Control and Evaluation of
Programme
HR Programming
Surplus
Restricted Hiring
Reduced Hours
VRS, Lay off
Shortage
Recruitment and selection
PROCESS OF HRP

HR DEMAND FORECASTING TECHNIQUES
 Managerial Judgement
 Ratio-trend Analysis
 Work study techniques
 Delphi techniques
 Flow models
 Others

HR SUPPLY FORECASTING TECHNIQUES
Existing
Human
Resource
Internal
Sources
of Supply
External
sources
of supply

JOB ANALYSIS
 JOB:
“Job is a ‘group of tasks to be performed everyday.”
 JOB ANALYSIS
Definition 1: (Process of Collecting Information)
“Job Analysis is a process of studying and collecting information relating to operations
and responsibilities of a specific job.”
 Definition 2: (Systematic Exploration of Activities)
“Job Analysis is a systematic exploration of activities within a job. It is a basic technical
procedure that is used to define duties and responsibilities and accountabilities of the
job.”
 There are two aspects of job Analysis
 Job description
 Job specification

JOB ANALYSIS
 Job description is prepared on the basis of data collected through job
analysis
 It is a description of the activities and duties to be performed in a job
 The relationship of the job with other jobs
 The equipment and tools involved
 Nature of supervision
 Working condition
Thus job description differentiates one job from other

JOB SPECIFICATION
PURPOSE OF JOB DESCRIPTION
 Grading and classification of jobs
 Placement and orientation of new employee
 Promotion and transfer
 Outlining for career path
 Developing work standards
 Counseling of employee

JOB SPECIFICATION
 Job specification focuses on the person
 Minimum level of qualification
 Skills physical and other abilities
 Experience
 Judgment and attributes
Job specification specifies the physical, psychological, personal,
social and behavioral characteristics of the job holder

JOB SPECIFICATION
Purpose of job description
 Personnel planning
 Performance appraisal
 Hiring
 Training and development
 Job evaluation and compensation
 Health and safety
 Employee discipline
 Career planning

 A statement containing items such as
 Job title
 Location
 Job summary
 Duties
 Machine, tools and equipment
 Materials and forms used
 Supervision given /received
 Working condition
 A statement containing items such as
 Education
 Experience
 Training
 Judgment
 Imitative
 Physical effort
 Physical skills
 Responsibilities
 Communication skills
 Emotional character tics
 Sensory demand
JOB DESCRIPTION JOB SPECIFICATION

UNIT-III
CAREER PLANNING AND DEVELOPMENT

CAREER PLANNING AND DEVELOPMENT
 What is a Career ?
 A Career can be defined as all jobs held by a person during his working life
 Career is represented as an organized, well timed and a positive move taken by an individual across time
and space in his life time
 There are factor’s shaping Career
 Education
 Experience
 Performance
 Parents
 Caste link
 Some occasional luck
 What is Career Planning ?
 Career planning can be defined as a systematic process by which one decided his/her career goals and the
path to reach these goals

 Objectives of Career Planning
 Build commitment in the individual
 Develop long-range perspective
 Reduce personal turnover expenses
 Lessen employee obsolescence
 Ensure organizational effectiveness
 Allow individual to achieve personal and work related goals.
 Importance of Career Planning
 Career planning is important because it helps the individual to explore, choose
and strive to derive satisfaction with his own career objectives

KEY TERMS IN CAREER PLANNING
 Key Terms in Career Planning
 Career Goals
 Career Path
 Career Anchor
 Career Progression
 Mentoring
 Career Planning
 Career Development
 Career Management

CAREER STAGES
Exploratory
stages
Establishment
stages
Mid career
stage
Late career
stage
Decline stage

CAREER PLANNING PROCESS
Action plan
and periodic
review
Identifying match
and mismatches
between aspiration
and opportunities
Analyzing
career
opportunities
Analyzing
employee
needs and
aspiration

CAREER DEVELOPMENT
 Career Development
 Career Need Assessment
 Career Opportunities
 Need Opportunity alignment
 Performance appraisal
 Career counseling
 Job rotation

CAREER MANAGEMENT
 Career Management
 Balance between Individual career planning and organizational
career planning
 Individual Career Planning
 Assess needs
 Analyze career opportunities
 Set career goals
 Develop action plans

 Organizational Career
Planning
 Assess human resource
requirement
 Career paths for each persons
 Integrate career goals and
organizational needs
 Initiate career development
efforts
 Career development
 How individual can reach the top
 How organization can help
 Self assessment tools
 Individual counseling
 Information services
 Assessment program
 Development program
 Program for special groups

HUMAN RESOURCE
MANAGEMENT
UNIT 4

PERFORMANCE APPRAISAL
 Definition: “It is a systematic evaluation of an individual
with respect to performance on the job and individual’s
potential for development.”
 Definition 2: “It is formal, structured system of
measuring, evaluating job related behaviors and
outcomes to discover reasons of performance and how to
perform effectively in future so that employee,
organization and society all benefits.”

MEANING
 Performance Appraisals is the assessment of individual’s performance
in a systematic way.
 It is a developmental tool used for all round development of the
employee and the organization.
 The performance is measured against such factors as job knowledge,
quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility and
health.
 Assessment should be confined to past as well as potential performance
also

PURPOSE OF PERFORMANCE
APPRAISAL
 To identify employees for salary increase, promotion,
transfer and lay-off or termination of services
 To determine training and development needs of the
employee
 To motivate employee by providing feedback on their
performance level
 To establish a basis for research and reference for
personnel decision in future.

 Performance Appraisal can been classified into two categories
Purpose of
Performance
Appraisal
Evaluative
1. Compensation Decision
2. Staffing Decision
3. Evaluate Selection System
Development
1. Performance Feedback
2. Training and Development
3. Feedback for Improvement

DIFFERENCE BETWEEN JOB EVALUATION
AND PERFORMANCE APPRAISAL
 It rates a job
 It rates the job keeping in view the
responsibility, qualification,
experience, working condition
 Its purpose is to determine wage
levels for different jobs
 It is rated before an employee is
appointed to hold it
 Conducting job evaluation is not
compulsory
 It is done by a committee consisting
of internal and external experts
 It rates a job holder
 It rates a job holder on the basis of his or
her performance
 It is done for the purpose to give effects
to promotion, transfer, assess training
needs, offer rewards, awards,
punishment
 It is evaluated only after the employee
has been hired and placed on a job
 It is compulsory to conduct it on regular
basis
 It is done by employees themselves,
peer, supervisor or combination
Job Evaluation Performance Appraisal

APPROACHES TO PERFORMANCE
APPRAISAL
 Casual Approach
 It is unsystematic and often random appraisal, which mostly
concentrated on quantitative and qualitative measurement
 Traditional Approach
This approach is used to evaluate
 Employee characteristics
 Employee contribution
All employee are appraised in the same manner using the same approach.
It is a highly systematic appraisal

APPROACHES TO PERFORMANCE
APPRAISAL
 Mutual Goal Setting Approach
 This is also called behavioral approach
 It is a improvement over the traditional approach
 It is popularly known as “Management by Objectives”

PROCESS OF PERFORMANCE
APPRAISAL
Establish
performance
standard
Communicate
performance
expectation to
employee
Measures
actual
performance
Compare
actual
performance
with standard
Discuss the
appraisal with
the employee
Initiate
corrective
actions

METHODS OF PERFORMANCE APPRAISAL
 Traditional method/past orientation
 Ranking method
 Paired comparison
 Grading
 Forced distribution method
 Forced choice method
 Checklist method
 Critical incident methods
 Graphic scale method
 Essay method
 Field review method
 Confidential method
 Modern methods/future orientation
 Management by Objectives
 Behaviorally anchored rating scales
 Assessment centers
 360-degree appraisal
 Cost accounting method

ESSENTIALS OF GOOD
PERFORMANCE APPRAISAL
 Standardized Performance Appraisal System
 Uniformity of appraisals
 Defined performance standards
 Trained Raters
 Use of relevant rating tools or methods
 Should be based on job analysis
 Use of objectively verifiable data
 Avoid rating problems like halo effect, central tendency, leniency, severity etc.
 Consistent Documentations maintained
 No opportunity for discrimination based on cast, creed, race, religion, region

POTENTIALAPPRAISAL
 What is potential
 It is the abilities present but not utilized
 Evaluating what a person can perform or do is called potential appraisal or
evaluation
 Potential represents latent capacities and qualities in a person which manifests
while performing the job
Objectives of potential appraisal
o Promote an employee to higher levels of jobs involving higher order or
responsibilities which the employee can effectively discharge without being over-
burdened and stretched
o Assist the organization to allocate jobs among employee as per their capabilities so
that organizational responsibilities are discharged effectively

HOW TO EVALUATE POTENTIAL
APPRAISAL
 Classification of potential appraisal
 Low potential – low performance (planned separation)
 High potential – low performance (Problem child)
 Low potential – high performance (solid citizen)
 High potential – high performance ( stars)
Problem child stars
Planned separation Solid citizen

JOB COMPENSATION – WAGES AND
SALARY ADMINISTRATION
 Workers render their services for wages and salary also called
compensation
 In other words workers exchange their work for compensation
 The term compensation comprises of cash payment, which in
addition to wages and salary includes pension, bonus and
shared profit
 There are other aspects of compensation the employee looks
for such promotion, words of praise, job satisfaction, job
content, creativity and so on

OBJECTIVE OF WAGES AND SALARY
 Organizational objective
 Enable an organization to have the quantity and
quality of staff it requires
 Retain the employees in the organization
 Motivate employees for good performance for further
improvement in performance
 Maintain equity and fairness in compensation for
similar job

 Individual objective
 Ensure a fair compensation
 Provides compensation according to employee’s worth
 Avoiding the chances of preference from creeping in when
wages rates are assigned
 Enhance employee morale and motivation
 Collective objective
 Matching with market rates
 Increase in compensation reflecting increase in the
prosperity of the company
 Compensation systems free from management discretion

PRINCIPLES OF WAGES AND SALARY
ADMINISTRATION
 The main principles that govern wages and salary fixation are three
 External Equity
 Internal Equity
 Individual worth
 External Equity: This principle acknowledges that factors/variables external
to organization influence level of compensation in an organization.
 These variables are such as demand and supply of labour, the market rate
 If these variables are not kept into consideration while fixing wages and
salary levels these may be insufficient to attract and retain employee in the
organization

PRINCIPLES OF WAGES AND SALARY
ADMINISTRATION
 Internal equity: Organization have various jobs which are relative in
value term.
 The value of various jobs in an organization are comparative
 Thus the compensation system should ensure that more difficult jobs
should be paid more
 Individual worth: according to this principle, an individual should be
paid as per his/her performance
 It has to be rewarded according to his contribution to organization
 This principle ensure that each individual’s pay is fair in comparison
others doing the same jobs i.e. “equal pay for equal work”

COMPONENTS OF WAGES AND SALARY
ADMINISTRATION
 Determination of wages and salary
 The starting point of wages and salary administration is the
determination of wages and salary levels
 The wages of employee in the organized sector in India is
determined by a variety of factors
 Wages Enactments (both central and state)
 Prevalent wages rates
 Influence of trade union
 Corporate philosophy on wages

COMPONENTS OF WAGES AND SALARY
ADMINISTRATION
 Wages and salary structure
 Jobs offered by an organization vary in terms of their values
 Job value is ascertained by job evaluation
 Once all jobs are assigned values, then these are placed in a
grade, or say, a rate per job.
 These grades are arranged in an hierarchical order starting
with lower to higher jobs
 Thus wages/salary structure consists of the various salary
grades and their different level of single jobs or groups of
jobs

FACTORS AFFECTING THE FORMULATION OF
SALARY AND WAGES
FACTORS
Cost of
living
Prevailing
wage rates
Govt.Legisl
ations
Ability to
pay
Labour
unions
Attraction
and
retention of
employee
Productivity

METHODS OF WAGE PAYMENT
 Minimum wages
 Living wage
 Fair wage
 Payment by time
 Payment by result
 Straight piece work
 Differential piece work system
 Balance method

INCENTIVES AND BENEFITS
 Incentives is anything that attract a worker and stimulates him to work
 The incentives can be financial and non-financial
 The incentives play an important role under different conditions
 Financial incentives are considered to be more valued under the work
condition where wages are at low level
 Non-financial incentives are more preferable where wages level are high
and the rate of tax is progressive
 Financial incentives as also known as wage incentives
 This wage incentives are extra financial motivation, they are designed to
stimulate human efforts by rewarding the person

MAIN FEATURES OF INCENTIVES
 Incentives are based on a standard of performance for the job
 Incentives are measurable in monetary terms
 Incentives are meant to motivate workers for better and more
performance
 Incentives have direct linking to performance
 Incentives vary from person to person and from time to time
for the same person

ASSUMPTIONS OF INCENTIVES SCHEME
 The belief that money is a strong motivator
 That the relationship between effort and reward can be
systematically established
 The relationship so based leaves no doubts in the mind of
the concerned employee
 The feedback to the employee is immediate and direct

TYPES OF INCENTIVES
 Individual incentives
 Taylor’s differential piece rate plan
 Halsey premium plan
 Rowan premium plan
 Emerson efficiency plan
 Gantt task and bonus plan

TYPES OF INCENTIVES
 Group incentives
 Profit-sharing
 Current
 Deferred
 Combination
 Co-partnership
 Scanlon plan

BENEFITS
 What is benefit?
 The term benefits has been in vogue in Indian industry since
long
 This is called by various names such as fringe benefits, wage
supplements, supplementary compensation, non-wage
benefits, indirect benefits, hidden benefits
 In simple words benefits means membership based non-
financial rewards given to employees

TYPES OF BENEFITS
 Statutory benefits
 The factories act 1948
 The mines act 1952
 The plantation labor act 1951
 The motor transport worker act 1961
 Employee’s state insurance act 1948
 Workmen compensation act 1923
 Voluntary benefits
 Legally required payment
 Old age pension, disability pension, unemployment insurance, worker’s compensation
 Contingent and deferred benefits
 Pension plan, group life insurance, maternity leaves
 Payment for time not worked
 Vacation, holidays and voting pay allowance
 Paid rest periods
 Waste-up time and lunch period
 Festival bonus

ADVANTAGES OF INCENTIVE BASED
COMPENSATIONS
 Incentives are important for inducement and motivation of workers for
higher efficiency and greater output.
 Employee earnings go up
 Enhanced standard of livings of employees
 Reduction in total unit cost of production,
 Productivity increases.
 Production capacity is also likely to increase
 Reduced supervision

DISADVANTAGES OF INCENTIVE BASED
COMPENSATION
 Tendency of quality of products deteriorated due to increased output
and low cost
 Employees may oppose introduction of new machines
 Workers demand for minimum wage limit may go up due to high
incentive earnings
 Sometimes employees may disregard security regulations due to
payment by results approach adopted for higher incentive figures
 Overworking may affect employee health
 Employee relations with peers are hit.

MAKING INCENTIVES AND BENEFITS
MORE EFFECTIVE
 Both incentives and benefits should be treated as an
instrument in human resource management
 The benefits should be aligned with the basic requirement of
the workers
 Benefits should also be comparable with benefits provided by
other organization both at the national and international levels
 The package should be flexible one as per the requirement
 Employees should be involved in the process of devising
incentives and benefit packages

PROMOTION
 Promotion is vertical movement of an employee within the
organization
 Promotion refers to the upward movement of an employee
from one job to another higher one, with increase in salary,
status and responsibilities
 Promotion may be temporary or permanent depending upon
the needs of the organization
 Promotion provides an inducement and motivation to the
employee and also remove feelings of stagnation and
frustration

TYPES OF PROMOTION
HORIZONTAL
PROMOTION
• When an employee
is shifted in the
same category, it is
called horizontal
promotion
VERTICAL
PROMOTION
• When an employee
is promoted from a
lower category to
higher category
involving in
increase in salary,
status, authority
and responsibilities
DRY PROMOTION
• When promotion is
made without
increase in salary it
is called ‘dry
promotion’

PURPOSE
 To recognize an employees skill and knowledge and utilize it to
improve the organization effectiveness
 To reward and motivate employees to higher productivity
 To develop competitive sprit and inculcate the zeal in the
employee to acquire skill knowledge
 To promote employee satisfaction and boost their morale

PURPOSE
 To build loyalty among the employee towards organization
 To promote good human relations
 To increase sense of belongingness
 To retain skilled and talented people
 To attract trained, competent and hard working people
 To impress the other employee that opportunities are available to
them too if they also perform well

POLICY FOR PROMOTION
 It must provide equal opportunities for promotion across the job,
departments and regions
 It must be applied uniformly to all employee irrespective of their
background
 The basis of promotion must be clearly specified and made known to
the employee
 It must be correlated with career planning. Both quick and delayed
promotions must be avoided as these ultimately adversely affect the
organizational effectiveness
 The policy must be good blending of promotion made from both
inside and outside organization

BASIS OF PROMOTION
 Seniority i.e. length of services
 Merit i.e. performance
 Educational and technical qualification
 Potential for better performance
 Career and succession plan
 Vacancies based on organizational chart
 Motivational strategies like job enlargement
 Training

TRANSFER
 A transfer refers to lateral movement of employee within the same
grade, from one job to another
 Transfer differ from promotion in the sense that the latter involves a
change a job involving increase in salary, authority, status and
responsibility, while all these remain unchanged/stagnant in the case
of former. Also transfer are frequent and regular whereas promotions
are infrequent, if not irregular
 The company may transfer the employee to the place where he can
prove more useful and effective
 Transfer are used as an instrument for victimizing the employees by
management

TYPES OF TRANSFER
 Production transfer: Such transfer are made when labour requirement
in one division branch is declining. The surplus employee from such
division are transferred to those division branches where there is
shortage of employee
 Remedial transfer: Such transfer are affected to correct the wrong
selection and placement of employee. A wrongly placed employee is
transferred to more suitable job
 Replacement transfer: Replacement transfer are similar to production
transfer in their inherent i.e. to avoid layoffs. Replacement transfer
are affected when labour requirement are declining

TYPES OF TRANSFER
 Versatility transfer: These transfer are also known as ‘job rotation’.
In such transfer employee are made to move from one job to another
to gain varied and broader experience of work.
 Shift transfer: These transfer are affected in the organizations where
work progresses for 24 hours or in shifts. Employee are transferred
from one shift to another usually on the basis of mutual
understanding and convenience.
 Penalty transfer: Management may use transfer as an instrument to
penalize employee involved in undesirable activities in the
organization. Employee transfer from one’s place of convenience to
a distant and remote area is considered as a penalty to the employee.

PURPOSE
 To meet the organizational needs
 To satisfy employee needs
 To better utilize employee
 To make employee more flexible
 To adjust the workforce
 To provide relief
 To punish employee

POLICY
 Specify the circumstance under which transfer will be made
 Specify the basis for transfer
 Decide the authority which would handle transfer
 Intimate the fact of transfer to the person concerned well in
advance
 Specify the jobs to which transfer will be made and duties
and salary on assumption of new jobs should also be clarified
 Clarify whether transfer is permanent or temporary

DEMOTION
 Demotion is just the opposite of promotion
 It is the downward movement of an employee in the organizational
hierarchy with lower rank/status and pay.
 Definition: ‘demotion is the assignment of an individual to a job of
lower rank and pay usually involving lower level of difficulty and
responsibility”
 Demotion affects the status, pride, career and income of the
employee
 It is often preliminary to dismissal
 It is used as a corrective measure in case of serious breaches of duty
on the part of an employee

 Causes
 Demotion may be caused by several factors which may be beyond an
employee’s control
 Incompetence
 Adverse business conditions
 Disciplinary measures

 Policy
 A clear and reasonable list of rules should be framed, violation of
which would subject and employee to demotion
 This information should be clearly communicated to employee
 There should be a competent investigation of any alleged violation
 Once violation are proved, there should be a consistent and equitable
application of the penalty, preferably by the immediate supervisor
 There should be provision for review

SEPARATION
 Separation is a situation when the services agreement of an employee with
organization come to an end and employee leaves the organization
 Employee may be separated, or say may move out of organization for a variety
of reasons like retirement, resignation, suspension, discharge, dismissal and
layoff
 Various forms of employee separation
 Retirement: Termination of an employee on reaching the age of superannuation
 Compulsory retirement
 Voluntary retirement
 Resignation: Termination of services by an employee by serving notice is called
resignation on the employer

SEPARATION
 Lay off: Lay off implies denial of employment for reasons beyond the control of
employer
 Lay off may be a temporary
 Retrenchment: Retrenchment means permanent termination of an employee’s services for
economic reasons
 Retrenchment occurs on account of surplus staff, poor demand for product,
general economic slow down etc
 Dismissal: Dismissal is termination of services of an employee as a corrective measures
 This may occur either on account of unsatisfactory performance or misconduct
 Before a employee is dismissed, he must be served advance notice to explain his
position
 The reason for dismissal must be clearly made known to the employee

ABSENTEEISM AND LABOUR TURNOVER
 Meaning: Employee’s presence at work place during the scheduled time is
highly essential for the smooth running of the production process in
particular and the organization in general.
 Despite the significance of their presence employees sometime fail to report
at the work place during the scheduled time which is known as absenteeism
 Definition: “ The failure of a worker to report for work when he is
scheduled to work”
 According to Webster's “Absenteeism is the practice or habit of being and
‘absence’ and an absentee is one who habitually stays away”

TYPES OF ABSENTEEISM
 Authorized absenteeism: If an employee absent himself from work by
taking permission from his superior and applying for leave, such
absenteeism is called authorized absenteeism
 Unauthorized absenteeism: If an employee absent himself from work
without informing or taking permission and without applying for leave, such
absenteeism is called unauthorized absenteeism

TYPES OF ABSENTEEISM
 Willful absenteeism: If an employee absent himself from duty
knowingly, such absenteeism is called willful absenteeism
 Absenteeism caused by circumstance beyond one’s control: If an
employee absent himself from duty owing to the circumstances
beyond his control like involvement in accidents or sudden sickness,
such absenteeism is called absenteeism caused by circumstance
beyond one’s control

FEATURES OF ABSENTEEISM
 The rate of absenteeism is the lowest on pay day, it increases considerably
on the day following the payment of wages and bonus.
 Absenteeism is generally high among the workers below 25 years of age
and those above 40 years of age.
 The rate of absenteeism varies from department within an organization.
Generally it is high in the production department.
 Absenteeism in traditional industries is seasonal in character.

CAUSES OF ABSENTEEISM
 In adaptation with the working condition
 Social and religious ceremonies
 Unsatisfactory housing
 Industrial weakness
 Unhealthy working condition
 Poor welfare facilities
 Alcoholism
 Indebtedness
 In adaptation with the job demand
 unsound leave facilities
 Low level of wages

CATEGORIES OF ABSENTEEISM
 Entrepreneurs: This class of absenteeism consider that their jobs are very small for
their total interest and personal goal. They engage themselves in other social and
economic activities to fulfill their goals
 The status seekers: This type of absenteeism enjoys or perceives a higher ascribed
social status and is keen on maintaining it
 The Epicureans: This class of absentees does not like to take up the jobs which
demand initiative, responsibility, discipline and discomfort. They wish to have
money, power, status but are willing to work for their achievement
 Family oriented: This type of absentees is often with the family activities
 The sick and old: This category of absentees is mostly unhealthy, with a weak
constitution or old people

MEASURES TO MINIMIZE ABSENTEEISM
 Selecting the employee by testing them thoroughly regarding their aspirations,
value systems, responsibility and sensitiveness
 Adopting a humanistic approach in dealing with the personal problems of
employee
 Following a proactive approach in identifying and redressing employee
grievances
 Providing hygienic working condition
 Providing welfare measures and fringe benefits, balancing the needs for the
employee and the ability of the organization
 Providing high wages and allowances based on the organization financial
positions
 Improving the communication network, particularly the upward communication

 Providing leave facility based on the needs of the employees and
organizational requirements
 Providing safety and health measures
 Providing coordinal human relations and industrial relation
 Educating the workers
 Counseling the worker about their career, income and expenditure, habits
and culture

 Free-flow of information, exchanging of ideas, problem etc. between
subordinates and superior
 Granting leave and financial assistance liberally in case of sickness
of employee and his family members
 Offering attendance bonus and inducements
 Providing extensive, training, encouragement, special allowances in
cash for technological advancement

LABOUR TURNOVER
 Employees who are not satisfied with their career in the present
organization may seek suitable employment in other organizations.
 Similarly, organization may also prefers candidates from external
source, if the internal candidates are not found suitable
 Meaning: external mobility means shifting of employees into and
out of an organization. It is defined as the rate of change in the
employee of an organization during a definite period.
 It measures the extent to which old employees leaves and new
employees enter into an organization

TYPES OF LABOUR TURNOVER
EXTERNAL
MOBILITY
Accession Separation

TYPES OF LABOUR TURNOVER
 Accessions: Accession are additions of new candidates to the
existing employee.
 It includes employment of new candidates, re-employment of
former employees, employees called back to work after lay
off etc
 Separation: separation means termination of employment. They are
also called employee turnover. They include
 Voluntary quitting or resignation by employees when they are
dissatisfied with the present job and organization

QUALITY OF WORK LIFE
 Quality of work life deals with various aspects of work environment,
which facilitates the human resource development efficiently
 Quality of work life helps for development of human resource
 Quality of work life includes and motivates the employees to learn
further for present and future roles
 Meaning: It refers to the favorableness or unfavourableness of a job
environment for people
 Definition: “the degree to which members of a work organization are
able to satisfy important personnel needs through their experience in
the organization

MEASURING OF QUALITY OF WORK LIFE
 Adequate and fair compensation
 Safe and healthy working condition
 Opportunity to use and develop human capacities
 Opportunity for career growth
 Social integration in the work force
 Constitutionalism in the work organization
 Work and quality of life
 Social relevance of work

SPECIFIC ISSUES IN QUALITY OF WORK
LIFE
 Unions claim that they are responsible for improvement in various facilities to
workers whereas management takes credit for improved salaries, benefits and
facilities
 Manager has identified specific issues in quality of work life besides normal
wages, salaries, fringe benefits etc and take lead in providing them so as to
maintain higher order quality of work life
 There are some issues in QWL
 Pay and stability of employment
 Occupational stress
 Organizational health program me
 Alternative work schedules
 Participative management and control of work

SPECIFIC ISSUES IN QUALITY OF WORK LIFE
 Recognition
 Congenial worker-supervisor relations
 Grievance procedure
 Adequacy of resources
 Seniority and merit in promotions
 Employment on permanent basis

LIFE
 QWL and fringe benefits: HR managers has to build and maintain
QWL providing a wide range of fringe benefits
 Fringe benefits and social security benefits result in
improvement in productivity, reduction in absenteeism,
turnover, sick, leave, alienation
 QWL and productivity: The general perception is that improvement
in QWL cost must to the organization
 The rate of increase in productivity is higher than the cost of
QWL
 Increase in QWL results in increase in productivity

LIFE
 HR activity Effects on Quality of Work life
 Job Analysis Analyze the job in such a way
that human needs like
freedom, challenging work,
autonomy can be satisfied
 Selection Selecting the right man and
placing him in the right position.
This satisfies his needs for reward,
interesting work etc
 Job Enrichment Satisfied higher order needs like
pride, ego etc
 Job Evaluation Equitable wages

QUALITY CIRCLE
 Meaning: It is small group of employees in the same work area or doing
similar type of work who voluntarily meets regularly for about an hour
every week to identify, analyze and resolve work related problems not
only to improve quality, productivity and the total performance of the
organization
 A task force is a group of most skilled employees selected and appointed
by the management, engaged in various functions with an orientation to
problem solving
 The quality circles are voluntary associations of workers of the same
work place
 Quality circle involves people in solving problem and tap their brain
power effectively

OBJECTIVES OF QUALITY CIRCLE
 To develop, enhance and utilize human resource effectively
 To improve quality of product/service, productivity and reduce cost of
production per unit of output
 To satisfy the worker’s psychological needs for self-urge, participation,
recognition etc. with view to motivating them
 To improve various supervisory skills like leadership, problem solving, inter
personal and conflict resolution
 To utilize individual imaginative, creative and innovation skills through
participation, creating and developing work interest, including problem solving
techniques
 Achievement of these objectives effectively requires the use of certain
techniques

FEATURES OF QUALITY CIRCLE
 Voluntary groups : QC is a voluntary group of employees generally
coming from the same work area. There is no presence from any
where on employee QC
 Small size : The size of the QC is generally small consisting of six to
eight members
 Regular meeting: QC meeting are held once a week for about an
hour or regular basis
 Independent agenda: Each QC has its own agenda with its won
terms of reference
 Quality focused : As per the very nature and intent of QC, it focus
exclusively on quality issues

ORGANIZATIONAL STRUCTURE OF QUALITY
CIRCLES
 Non-members: These are the persons who have to help in implementing the
recommendation made by the quality circle members
 Members: The members are the heart of the program me, and proper use of their
untapped brain power is the key to its success
 Leader/deputy leader: The quality circle leader is elected by the circle members
 Facilitator: facilitator is an important link between the quality circle leader and
the steering committee
 Steering committee: It is an apex body at the highest level of the plant which
would be responsible for formulating objectives and for supplying the resources
for the quality circle activities
 Top management
 Co-ordinating Agency

BENEFITS OF QUALITY CIRCLE
 Satisfaction of self esteem and esteem from others
 Improved job satisfaction
 Self-development in terms of skills, knowledge, sensitivity
 Satisfaction of social and psychological needs
 Problems of quality circle
 Fitting them effectively in the existing cultural environment
in the industry, rewarding, awarding and motivating the
quality circle members and facilitators
 Negative attitude
 Lack of ability
 Lack of management commitment
 Non implementation of suggestion

HUMAN RESOURCE
MANAGEMENT
UNIT V

SYLLABUS
 Job Satisfaction and Morale
 Employee Health and Safety
 Counseling for Effective HRD
 Human Relations
 Employee Grievance and discipline
 Employee participation and Empowerment
 Collective Bargaining
 HR Audit

JOB SATISFACTION
 Job satisfaction refers to a person’s feeling of satisfaction on the job, which
acts as a motivation to work
 It is not self-satisfaction, happiness or self-contentment but satisfaction on
the job
 Definition: “pleasurable emotional state resulting from the appraisal of
one’s job as achieving or facilitating the achievement of one’s job values”

FACTORS AFFECTING JOB SATISFACTION
 Personal factors: They include worker’s sex, education, age, marital status
and their personal characteristics, family background, socio-economic
background and the like
 Factors inherent in the job: These factors have recently been studied and
found to be important in the selection of employee
 These include the work itself, condition, influence of internal and
external environment on the job which are uncontrolled by the
management
 Factors inherent in the organization: These include the nature of
supervision, job security, kind of work group, wage rate, promotional
opportunities, transfer policy, duration of work and sense of responsibilities

HUMAN RELATIONS
 Practicing various human resource policies and program like employment,
development & compensation and interaction
 Employees create a sense of relationship between the individual worker and
management, among workers and trade union and the management
 It is the process of interaction among human beings
 Human relation is an area of management in integrating people into work
situation in a way that motivates them to work together productively, co-
operatively and with economic, psychological and social satisfaction

 Human relations includes of the following
 Understanding and applying the model of perception, personality,
learning, intra and inter-personal relations, intra-inter-groups relation
 Motivating the employees
 Boosting employee morale
 Developing the communication skills
 Developing the leadership skills

…CONTD..
 Redressing employee grievance properly and in time by means of a well
formulated grievance procedure
 Handling disciplinary cases by means of an established disciplinary
procedures
 Counseling the employees in solving their personal, family and work
problems and releasing their stress , strain and tension
 Providing a comfortable work environment by reducing weakness,
repetitiveness , boredom and industrial accidents
 Improving quality of work life of employee through participation and
other means

MORALE
 Definition: “ a mental condition or attitude of individuals and
group, which determines their willingness to co-operate”
 Good morale is evidenced by employee enthusiasm, voluntary
conformance with regulation and orders and willingness to co-
operate with others in the accomplishment of an organization’s
objectives
 Poor morale is evidenced by coldness, insubordination, a feeling of
discouragement and dislike of the job, company and associates

IMPORTANCE OF MORALE
 High level morale contributes to sound superior –subordinate relation
 High morale leads to employee satisfaction. The satisfied employee
stays with the organization continuously
 It reduces employee turnover and absenteeism
 High level morale and employee satisfaction reduces employee
grievance. Further satisfied employees follow the company rules and
regulation
 It reduces employee indiscipline
 High morale leads to employee commitment to industrial peace by
avoiding the occurrence of industrial disputes
 Morale helps the employees to build teams easily to maximize their
contribution Versatile Business School, Egmore, Chennai - 600 008

FACTORS AFFECTING MORALE
 The level of satisfaction with job standards
 The level of consideration the supervisor shows to his
subordinates
 The work load and the work pressure level
 The treatment of individuals by the management

FACTORS AFFECTING MORALE
 The level of worker’s pride in the company and its activities
 The level of workers satisfaction with salaries
 Worker’s reaction to the formal communication network in
organization
 Fundamental job satisfaction level of the workers
 Worker’s satisfaction with eh progress and opportunities for
further progression
 The worker attitude towards fellow workers

MEASUREMENT OF MORALE
 Employees are naturally unwilling to express their true attitude towards work
and the management. So it is difficult to measure the morale of the employee
exactly. The following are some popular methods of morale measurement
 Observation
 Attitude survey
 Company records
 Observation: A keen observation of employee behaviour, talk, and signal should
help the manager to identify any change in the level of morale
 Attitude survey: attitude survey are conducted mainly in two ways.
(A) Interview method and Questionnaire Method

MEASUREMENT OF MORALE
 Company records: certain reports from the personal
department provides the information as to labour
turnover, rate of absenteeism, number of worker
grievance

 Warning signs of low morale
 High rate of absenteeism
 Lateness
 High labour turnover
 Strikes and damage
 Lack of pride in work
 Wastage and spoilage
 Maintenance of morale (preventive measures or remedial
measures)
 Job enrichment
 Modifying the work environment
 Flexible working hours
 Job rotation
 Point individual prosperity in company prosperity
 Adaptation of “how shall – we do it” attitude

EMPLOYEE HEALTH AND SAFETY
 Meaning of health: health implies absence of disease
 Definition: according to the (WHO) : “ a state of complete physical, mental
and social well-being and not merely the absence of disease or illness or
infirmity”
 There are two types of health: Physical and Mental
 Physical Health
 Mental Health

EMPLOYEE HEALTH AND SAFETY
 Three factors for mental health
 Mental breakdown
 Mental disturbance
 Mental illness

 Importance of Health
 Maintain and improve the employee performance both quantitatively
and qualitatively
 Reduce employee absenteeism and turnover
 Minimize industrial unrest and indiscipline
 Improve employee morale and motivation
 Occupational Health and Diseases
 Occupational health services should be established in or near a place of
employment for the purpose
 Protecting the workers against any health danger arising out of work or
condition in which it is carried on
 Contributing towards worker’s physical and mental adjustment
 Contributing to establishment and maintenance of the highest possible
degree of physical and mental well being of the workers

 Occupational danger and diseases
 Employees in certain industries are exposed to certain occupational danger and
diseases
 Occupational danger(hazard)
 Chemical hazard
 Biological hazard
 Environmental hazard
 Psychological hazard
 Occupational diseases
 Occupational diseases are caused by working conditions prevalent in industries
 Like occupational danger occupational diseases also develop with worker’s frequent
exposure to unhealthy working conditions
 They develop slowly with accumulated effects over an extended period of time

 Protection against Hazard: Industrial establishment can take two types of
measures to protect worker’s health against occupational danger
 Preventive measures
 Pre-employment medical examination
 Periodic post employment medical examination
 Removal of dangers conditions to the extent possible
 Emergency treatment in case of accident
 Education of workers in health and hygiene
 Training in first-aid to workers

 Curative measures
 Adequate and timely medical treatment
 Allowing the employee adequate period of recovering and
improving
 Adequate compensation
 Allowing the needed best medical treatment from outside
hospitals

STATUTORY PROVISION CONCERNING
HEALTH
 The Factories Act, 1948 insists that the following provisions must be made in
industrial establishment for safeguard employee health
 Cleanliness
 Disposal of wastes and effluents
 Ventilation and temperature
 Dust and smoke
 Lighting
 Overcrowding
 Drinking water
 Spittoons
 First-aid appliance

SAFETY
 Meaning: safety means freedom from the occurrence or risk of injury or loss
 Industrial safety refers to protection against accident occurring in the
industrial establishment
 Significance of industrial safety
 It saves cost: occurrence of an accident involves two types of cost.
Direct and indirect cost
 Direct cost- compensation payable to the dependent of the victim
employee and medical expenses
 Indirect cost – loss on account of down-time of operators, slowed down
production rate of other workers, spoiled materials, and damages to
equipment

SAFETY
 It improves productivity
 It develops moral
 Safety is a legal requirement
 Safety measures/programmes
 Reduction in unsafe conditions
 Safety committee
 Safety education and training
 Inspection
 Role of governmentVersatile Business School, Egmore, Chennai - 600 008

STATUTORY PROVISION FOR INDUSTRIAL
SAFETY IN INDIA
 Fencing of machinery (sec 21 of factories act 1948)
 Work on or near machinery in motion (sec 22)
 Employment of adolescents on dangerous machine (sec 23)
 Striking gear or device for cutting off power (sec 24)
 Self-acting machines (sec 25)
 Casting of new machinery (sec 26
 Hoists and lifts (sec 28)
 Lifting machines, tackles, chain and ropes (sec 29)
 Revolving machinery (sec 30)

GRIEVANCE PROCEDURE
 Definition : According to beach “any dissatisfaction or feeling of injustices in connection with
one’s employment situation that is brought to the notice of the management.
 Needs for a grievance procedures
 Most grievance seriously disturb the employees. This may affect the morale, productivity
and their willingness to cooperate with the organization
 It is not possible that all the complaints of the employee would be settled by first-time
supervisor
 It serves as a check on the subjective action of the management because supervisor know
that employees are likely to see to it that their protest does reach the higher management
 It serves as an outlet for employee grips, discontent and frustration

CAUSES OF GRIEVANCE
 Demand for individual wage adjustment
 Complaints about the incentives system
 Complaints about the job classification
 Complaints against a particular foreman
 Complaints concerning disciplinary measures and procedures
 Objections to the general methods of supervision
 Loose calculation and interpretation of seniority rules and unsatisfactory
interpretation of agreement

CAUSES OF GRIEVANCE
 Promotions
 Disciplinary discharge or lay-off
 Transfer for another department or another shifts
 Inadequacy of safety and health services/devices
 Non-availability of materials in time
 Violation of contracts relating to collective bargaining
 Improper job assignment

 Prerequisites of grievance procedure
 Conformity with prevailing legislation
 Clarity
 Simplicity
 Promptness
 Training
 Follow-up

DISCIPLINARY PROCEDURE
 Needs for Disciplinary Measures : Rules and regulation are essentials to
maintain peace, prevent anarchy, regulate behavior of people and to hold the
pieces together
 Meaning and Definition: Discipline refers to a condition or attitude,
prevailing among the employees, with respect to rules and regulations of an
organization
 Discipline in the broadest sense means” orderliness, the opposite of
confusion. It does means a strict and technical observance of rigid rules and
regulation. It simply means working cooperating and behaving in a normal
and orderly way, as any responsible person would expect an employee to do

 Aspects of discipline
 Positive aspect
 Negative aspect
 Positive aspect: employees believe in and support discipline and adhere to the rules,
regulations and desired standards of behaviour
 Discipline takes the form of positive support and reinforcement for approved
actions and its aim is to help the individual in moulding his behaviour and
developing him in a corrective and supportive manner. This type of approach is
called positive approach or constructive discipline or self-discipline

 Negative aspect: Employee sometimes do not believe in and support
discipline. As such, they do not adhere to rules, regulations and desired
standard of behaviour
 A disciplinary programme forces and constraints the employees to obey
and function in accordance with set rules and regulations through
warning, penalties and other forms of punishment


OBJECTIVES OF DISCIPLINE
 To obtain a willing acceptance of the rules, regulations and procedures of an
organization so that organization goals may be attained
 To impart an elements of certainty despites several differences in informal
behaviour patterns and other related changes in an organization
 To develop among the employee a spirit of tolerance and a desire to make
adjustments
 To give and seek directions and responsibility
 To create an atmosphere of respect for the human personality and human
relations
 To increase the working efficiency and morale of the employees so that their
productivity is stepped up and the cost of production improved

 Indiscipline: Indiscipline means disorderliness, insubordination and not
following the rules and regulation of an organization
 The symptoms of indiscipline are change in the normal behaviour,
absenteeism, lethargy, go-slow at work, increase in numbers ad severity of
grievances, persistent and continuous demand for overtime allowances, lack
of concern for performance
 Causes of indiscipline
 Non-placement of the right person on the right job which is suitable for his
qualification, experience and training
 Undesirable behaviour of senior officials, who may have set a pattern of
behaviour which they expect their subordinates to follow
 Faculty evaluation of person and situation by executives leads to favoritism,
which generates undisciplined behaviour

CAUSES OF INDISCIPLINE
 Lack of communication
 Leadership which is weak , flexible, incompetent and distrustful of subordinates
 Defective supervision
 Lack of properly drawn rules and regulation
 Intolerably bad working conditions
 Absence of enlightened, sympathy and scientific management
 Discrimination based on caste, colour, creed, sex, language and place
 Undesirable management practices
 Improper co-ordination, delegation of authority and fixing of responsibilities
 misunderstanding

 Disciplinary procedures
 Issuing letters of charge to the employee calling him for
explanation
 Consideration of the explanation
 Show-cause notice
 Holding of a full-fledged enquiry
 Considering the enquiry proceeding and findings and making final
order of punishment
 Follow up

DISCIPLINARY PROCEDURES
 Types of punishment
 Oral warnings
 Written warnings
 Loss of privilege and fines
 Punitive suspensions
 Withholding of increments
 Demotion
 Termination

 The traditional management/ administration believed that lower level employees
do not have managerial skills, managerial knowledge and managerial aptitude
 Increase in levels of formal education, increase in the contents in the
educational program me's, entry of high qualified candidates even at the lower
level of the organization made the managements to realize that even the
employees at the lower level can take operational and executive decision, if they
are
 Provided with the required additional skills and knowledge through training
and development
 Are delegated with the required authority and responsibility
Some of the modern management enabled the employees to take executive and
operational decisions and also implement them by providing training and
development and delegating authority and responsibility

EMPOWERMENT
 Meaning: Empowerment refers to enabling a lower level employees to make all the
decisions required for carrying out his duties or discharge his responsibilities on his
own and implement them.
 Definition: according to Newstrom and Davis Empowerment is the process that
provides greater autonomy through the sharing or relevant information and
provision of control over factor affecting job performance”

APPROACHES TO EMPOWERMENT
 Approaches to Empowerment: The real problem is in fact, how to empower
employees. Like other behavioral problems, the researchers have studied the
problem and have suggested five broad approaches to empowerment
 Helping employees achieve job mastery
 Allowing more control
 Providing successful role model
 Using social strengthening and persuasion
 Giving emotional support


DIMENSIONS OF EMPOWERMENT
 Four dimension of Empowerment
 Impact : Perceived to make a difference in terms of accomplishing
purpose of the task
 Competence: Skilful trying of a job results in the task to improve
competence
 Meaningful: If a task is worthwhile, it provides meaningfulness
 Choice: A task provides choice if it allows the employee self-
determination in performing task activities

 Conditions necessary for Empowerment
 Participation
 Innovation
 Information
 accountability

FORMS OF EMPOWERMENT
 Quality circle: It is a work of employees who meet regularly to discuss
their quality problem, investigate causes, recommend solution, and take
corrective actions
 Empowered teams: Closely related to QC is empowered team also called
‘self – directed team’ or ‘self –managing team’
 These are the teams allowed to run the show by themselves
 These are the groups that are given a large degree of decision-making
autonomy and are expected to control their own behaviour and results
 How to develop empowered teams?
 Identification of responsibility
 Methods of monitoring and feedback
 Specification of member’s responsibilities
 Determination of training needs
 Work plan for transition

COLLECTIVE BARGAINING
 It is industrial democracy at work
 Collective bargaining is not a competitive process but it is essentially a
complementary one.
 It is an art and an advanced form of human relation

IMPORTANCE OF COLLECTIVE
BARGAINING:
 Collective bargaining plays a vital role in setting and preventing industrial disputes.
 Increases the economic strength of unions and management
 Establish uniforms condition of employment with a view to avoiding industrial disputes
and maintaining stable peace in the industry
 Secure a prompt and fair redresal of grievance
 Avoid interruption in work which follow strikes go-slow tactics and similar coercive
activities
 Lay down fair rates of wages and norms of working condition
 Achieve an efficient operation of the plan
 Promote the stability and prosperity of the industry

CONDITIONS FOR THE SUCCESS OF
 Constructive consultation between the trade union and the management is
possible only when the bargaining power of two parties is relatively equal and is
exercised with responsibility and discrimination
 The willing acceptance by the management to recognize representative union for
this purpose
 Both the parties must have mutual confidence, good faith and a desire to make
collective bargaining machinery a success
 Unions must understand the economic implication of collective bargaining and
realize that union demand must be met from the income and resource of the
organization
 The process of bargaining should be free from unfair practices

 Both the parties should represent the rights and responsibilities of each
other
 The parties involved in collective bargaining should be prepared to give
away something in order to gain something
 Both the parties to collective bargaining should observe and follow the
term and condition of previous agreement that are reached
 Collective bargaining being a continuous process, can be effective only
with the successful implementation of previous agreement

 Any lapse on the part of any party concerned show its effect on
the present process
 The representatives of both the parties should fully understand
and be clear about the problem and their implications
 The workers can make effective use of collective bargaining
process to achieve participation management and good working
conditions

FUNCTIONS OF COLLECTIVE BARGAINING
 Increase the economic strength of employees and management
 Establish uniform conditions of employment
 Secure a prompt and fair equalization of grievance
 Lay down fair rates of wages and other norms of working conditions
 Achieve an efficient functioning of the organization
 Promote the stability and prosperity of the company
 It provides a method of the regulation of the conditions of employment of those
who are directly concerned about them
 It provides a solution to the problem of sickness in the industry and ensures old-
age pension benefits and other fringe benefits
 It ensure that the management is conducted by rules rather then by random
decisions

STAGES OF COLLECTIVE BARGAINING
Prenegotiation
Phase
The selection of
Negotiators
The Strategy of
Bargaining
The Tactics of
Bargaining
The Contract

 Problems faced during collective bargaining
 Problems with unions
 Problems from government
 Legal problems
 Political interference
 Attitude of management

HR AUDIT
 An audit is an examination and verification of accounts and records
 HR audit refers to an examination and evaluation of polices,
procedures and practices to determine the effectiveness and
efficiency of HRM
 The measurement of the effectiveness of the human resource
management’s mission, objectives, strategies, policies, procedures,
programmes and activities

 Objectives of HR audit
 To review the whole system of management programmes in which a
management develops, allocates and supervises human resources in an
organization with a view of determining the effectiveness of these programme
 To seek explanations and information, that is, to get answer to such questions
as “why did it happen?’ and “ what happened”
 To evaluate and extent to which line managers have implemented the policies
which have already been initiated
 According to Gray “ the primary purpose of personnel audit is to know how
the various units are functioning and how they have been able to meet the
policies and guidelines which were agreed upon; and to assist the rest of the
organization by identifying the gap between objectives and result for the end
product of an evaluation should be to formulate plans for corrections or
adjustment

PROCESS OF HR AUDIT
Human Resource
Functions
Managerial
Compliance
Employee
Satisfaction
Corporate
Strategy
Comparison
Outside Authority
Statistical
Compliance
MBO
Human Resource
Research
Evaluation
Report
Scope
Approaches

COUNSELLING FOR EFFECTIVE HRD
• Employees face a variety of uncertainties, issues and problems both at
the work and the family. In fact these problem are multi faceted
involving economic, social, psychological and religious consideration
• Counselling is one of the efficient intervention to find out work and
family related employee problems that affect the work negatively
• Counselling is the process of helping other persons to find out and act
upon a solution to their problem anxieties, uncertainties and issues
• The person conducting counselling is called counsellor and the person
being counselled is called counsellee or client

CONCEPT OF COUNSELLING
• Counsellor is mostly concerned with the client rather than the problem
• The counsellor helps the counsellee to identify his own problem and
develop his own solution rather than imposing his solution
• Counselling can assist the employee to resolve difficulties in a
supportive and professional setting
• Counselling is confidential and private
• Counselling can assist the employee to understand the problem, its
impact and to develop strategies to cope with it
• Counselling can result in quicker and less stressful resolution of the
problem with less disruption to the workplace

• Counselling is provided for work and personal issues
– Stress
– Change
– Conflict
– Career planning
– Communication
– Shock
– Depression
– Relationship issues
– Family problem
– Gambling
– Sorrow and pain
– Anxiety
– Drug and alcohol problem
– Work satisfaction

• Process of counselling
– Identifying the needs for counselling
– Communicating effectively
– Managing the counselling interview
• Setting up the interview
• Creating the right interview opportunity
• Starting the interview
• Encouraging the people to talk
• Reaching the core problem
• Discovering when to ask and what to ask
• Exploring the feelings
• Solving the underlying problem
• Develop and provide the solution
– Controlling emotions
– Follow-up

 Factors that has an impact in the workplace
 Restructuring and organizational change
 Conflict
 Work related stress
 Career transition
 Staff morale
 What constitute counselling
 Telling
 Advising
 Manipulating
 counselling

 Counselling in organization
 Career counselling
 Performances counselling
 Idleness counselling
 Corrective counselling
 Grievance counselling

Human Resource Management Full Notes

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Human Resource Management Full Notes