hrm complete notes

7/28/2019 HRM Complete Notes

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INTRODUCTIONINTRODUCTION

Human Resources are one of the most vital assets of an

organization. It is the people who make other resources moving;they perform various activities in different financial areas like

production, marketing, finance etc. The significance of human

resources in a modern organization can be seen in the context

of activation of non human resources means for developing

competition advantages and source of creative energy. HRM

handle all physical and financial resources in an organization.

The quality of human resource is a critical factor in the

success of any organization, and more so in service organization

like banking and insurance. In super competitive world, the thing

that is most unique to every financial institution is the capability

of its people .It is the organizations employees-its human

resources-that give a bank or insurance firm its competitive edge.

WHAT IS HUMAN RESOURCE MANAGEMENT?WHAT IS HUMAN RESOURCE MANAGEMENT?

Wendell French describes human resource management as the

philosophy, policies, procedures, and practices related to the

management of people within the organization.

In the words of Robbins Human resource management isconcerned with the people dimensions in management. It is a

process consisting of the acquisition, development, motivation,

and maintenance of human resources.


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Human resources management is about managing people. It is a

process of binding of people and organizations together so that

the objectives of each are achieved.

Human resource management is based on four

fundamental principles:

1. Human resources are the most important assets an

organization has and their effective management is the

key to its success.

2. Organizational success is most likely to be achieved if

the personnel policies and procedures are closely linked

to corporate objectives and strategic plans.

3. Organizational culture, values and climate significantly

influence managerial behavior and exert a major influence

on the achievement of excellence. Hence, continuous

effort starting from the top is required for themanagement and acceptance of the culture.

4. Human resource management is concerned with

integration getting all members of the organization

involved and working together with a sense of common

purpose.


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IMPORTANCE OF HUMAN RESOURCEIMPORTANCE OF HUMAN RESOURCE

MANAGEMENTMANAGEMENT

Human resources are the most precious possessions of any

organization. It is, therefore, necessary to take utmost care for

their survival and growth. Human resource management is the

management of this most important resource. Liberalization and

globalization has increased the importance of human resource

management by manifold.

Effective human resource management is vital for its impact is

felt from the individual level to the national level. The

significance of human resource management is at four levels:

1. Organizational significance: Human resource management

plays an important role in helping the organization attain

its goals. It helps in this direction through effective human

resource planning, recruitment and selection of talented

employees, training and development of employees,developing sound performance appraisal and compensation

systems, career planning and so on.

2. Professional significance: Effective management of human

resource contributes towards the personal growth and

development of every employee. It helps to improve the

quality of work life by providing a healthy working

environment.

3. Social significance: Human resource management is of

great importance to the society. Sound management of

human resources helps in satisfying the social and

psychological needs of employees


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Through suitable employment. It avoids wastage of human

resources and helps in the conservation of physical and

mental health.

4. National significance: The true wealth of nation is not its

natural resources but its people. Human resources and

their management play a vital role in the development of a

nation. The development of a country depends on the skills,

attitudes and values of its human resources. Effective

management of human resources helps to speed up the

process of economic growth, which in turn leads to higher

standards of living and fuller employment.

OBJECTIVES OF HUMAN RESOURCEOBJECTIVES OF HUMAN RESOURCE

MANAGEMENTMANAGEMENT

Every organization has some objectives. In order to attain

organizational objectives, it is necessary to integrate the

interests of the employees with that of the employer. Hence theobjectives of human resource management are derived from the

basic objectives of the organization.

Integration of goals: HRM seeks to integrate all the

individuals and groups within the organization by reconciling

individual/group goals with those of the organization.

Cost containment: In todays competitive business

environment, keeping expenses down or cost containment, is

a critical HRM goal.


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Goals through able employees: HRM seeks to help the

organization attain its goals by providing it with competent

and dedicated employees.

Optimization of human resources: By employing the

knowledge and skills of employees efficiently and

effectively, HRM seeks to optimally utilize the human

resources of the organization.

Growth and development of employees: HRM seeks to

ensure the growth and development of the employees by

providing opportunities for training and advancement.

Self-actualization: HRM aims to increase employees job

satisfaction and set them on the path of self-actualization

by providing them with opportunities to utilize their

potential to the fullest.

Satisfy needs: By providing adequate compensation, HRM

seeks to ensure that the basic needs of the employees aresatisfied and they are able to live a dignified life.

Motivation: An important goal of HRM is to motivate the

human resources through adequate monetary and non-

monetary incentives so as to stimulate better performance,

which in turn will enable the organization to accomplish its

objectives. It also helps to retain talented employees and

reduce employees turnover.


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*SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of human resource management is very vast. It is

connected with all major activities in the working life of a worker.HRM is connected with every other department, as human

resources are the requirement of all departments in the

organization.

HRM covers the following areas:

Human resource planning

Job analysis and design

Recruitment and selection and induction

Training and development

Performance appraisal

Transfers and promotion

*HUMAN RESOURCE MANAGEMENT*HUMAN RESOURCE MANAGEMENT

FUNCTIONSFUNCTIONS

Human resource management involves a large number offunctions. This number varies according to the size and needs of

the organization. The functions of HRM affect the organization

internally. However the external environment affects HRM

functions. The major functions of human resource management

are:


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Human resource planning: Human resource planning is

the process of assessing the organizations human

resources needs in the light of organizational goals and

changing conditions and making plans to ensure that a

competent, motivated work force is employed.

Human resource planning is very important in these

modern times where everything is fluid and changes are

occurring at great speed.

Organizational and job designing: An important

activity of HRM is developing an organization which

caters for all the activities required, groups, themtogether in a way which encourages integration,

cooperation, and provides for effective communication

and design making.

Job design is concerned with deciding on the content

and accountabilities of jobs in order to motivate employees

and maximize job satisfaction.

Staffing: staffing or acquisition of human resource isanother activity of human resource management.

Staffing activities determine the composition of an

organizations human resources.

Staffing activities include: attracting qualified people

to the organization, selecting from among candidates,

reassigning employees through transfer, promotion or

demotion and ultimately managing the employeeseparation through resignation, discharge or

retirement.

Training and development: This activity of HRM

focuses on improving the performance of individuals


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and groups within the organization. These activities

aim to help employees learn new skills or refine

existing skills.

Human resource managers must decide which skills or

knowledge areas need development and which methods are

most effective for helping employees acquire skills and

knowledge.

Performance appraisal and review: Performance

appraisal and review is an ongoing evaluation of

individual and group contributions to the organization

and the communications of those evaluations to thepersons involved.

This HRM functions is carried out for a number of

purposes:

To provide feedback about performance, to determine the

need for training, to make decisions about promotions, pay

increases and so on.

Compensation and reward: Organization compensatesemployees through wages and salaries, bonuses and

benefits, such as health insurance, vacation time, and

pension programs. The presence or absence of rewards

and recognition is important to employee morale and

performance.

Compensation decisions include determining: ensuring

fair and equitable pay differences among employees,

designing a pay packages relative to that of its competitors,forms of compensation and so on.

Health and safety management: This function of

HRM includes activities and events that serve to

protect organization members from illness and


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physical dangers in the workplace and to assist them

with their physical and emotional health.

For many organizations, protecting the health

and safety of human resources is a prime social

responsibility. This HRM functions serves to preserve the

human resources of the organization.

Employee participation: This is a relatively new

function of HRM. Employee participation focuses on

giving employees a voice, sharing information with

them and consulting them on matters of mutual

interest.Employee participation is an important step in

establishing industrial democracy.

* Definition of Personal Management :

* Difference between PM & HRMPM HRM

1. Personnel means personsemployed. Personnelmanagement is themanagement of peopleemployed

1.HRM is the management ofemployees skills , Knowledge,abilities, talents, aptitudes,creative abilities.

2. Employee in personnelmanagement is mostly treatedas an economic man as hisservices are exchanged forwage/ salary

1. Employee in human resourcemanagement is treated notonly as economic man but alsoas social & psychological man.

Thus, the complete man is

viewed under this approach.

3. Employee is viewed ascommodity or tool orequipment which can bepurchased & used

2. Employee is treated as aresource

4. Employees are treated as cost 3. Employees are treated as a


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centre & thereforemanagement controls the costof labor

profit centre & thereforeinvests capital for humanresource training &development

5. Employees are used mostly fororganizational benefit

4. Employees are used for themultiple mutual benefit of theorganization , employees andtheir family members

6. Personnel function is treatedas only an auxiliary

5. Human resource managementis a strategic managementfunction.

* Challenges before HR Manager

1. Work life balance- As HR personnel has a dual responsibility he hasto get the work done by the employees to attain the goal of theorganization & at the same time he has to handle the grievances ofemployees , employees should not be overloaded with task & goals

2. Employee Expectations With the changes in the workforcedemographics , globalization , liberalization change in the attitudeof employees has been observed their expectations have changedthey ask for empowerment & expect fair treatment by themanagement.

3. Ethical HR Practices- HR managers role in building an ethicalclimate is significant because they are the one who actually framethe culture of the organization they should follow ethical practicesfrom recruitment to appraisal till the full & final settlement. It hasbeen observed that they themselves at times carry on withunethical practices like taking discounts from consultancies,caterers transport operators etc.

4. Talent Retention One of the most challenging problem for HRManagers is to retain the talents because of intense competitionfrom global companies domestic companies are in trouble becausemost of the Indian Companies at present are not offering the perks& benefits what an MNCs offer, so they find it difficult to retain thetalent

5. Managing different work force - For HR manager this is veryimportant that they keep the environment of the organization freeof conflicts & when there are thousands of people working togethermany conflicts crops up so policy of the Companies should be


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secular & should not show any biasness all this things has to beconsidered and implemented by the HR manager

Role of HR Manager notes in class

Characteristics of the workforce notes in class

Personnel Philosophy notes in class

Personnel Manual-notes in class

HR as a supporting system Most of the organization doesnt

consider HR to be a part of decision making team they are just

considered to be a supporting pillar whereas in reality they are

the one who actually represent the entire organization & if theirviews are not included in the policies of the Company it may

affect the climate of the organization.

STRUCTURE OF HUMAN RESOURCESSTRUCTURE OF HUMAN RESOURCES

DEPARTMENTDEPARTMENT

A human recourse department is becoming an integral part

of every organization.

The following diagram illustrates the common structure of the

human resources department:


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HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING

Human Resource Planning is based on the belief that people

are an organizations most important strategic resource. It

attempts to address

The human resource needs of an organization both in quantitative

and qualitative terms. Human Resource planning is also concerned

with how people are employed and develops in order to improve

organizational effectiveness.

DEFINITIONDEFINITION

PRESIDENT/DIRECTOR (Human

Resources)

Manager Manager Manager Manager Manager

Recruitm

ent

&

Selection

Training &

Developme

nt

Compensati

on

& Benefits

Employe

e

Welfare

Employe

e

Relation

s


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Wendell French defines human resource planning as the process

of assessing the organizations human resources needs in the light

of organizational goals and changing conditions and making plans

to ensure that a competent, stable work force is employed.

OBJECTIVES OF HUMAN RESOURCESOBJECTIVES OF HUMAN RESOURCES

PLANNINGPLANNINGThe specific objectives of human resources planning may

vary as per the specific needs of the organization. However, most

human resource plans have the following objectives:

Optimal utilization of human resources: The mainobjective of human resource planning is to maintain and

improve the organizations ability to achieve its goal by

developing strategies that will result in optimum

contribution of human resources.

Meeting personnel requirements: Human resource planning

is not concerned with merely forecasting future manpower

requirements of the organization but also with developingappropriate recruitment and selection strategies to meet

these requirements. Human resource planning seeks to

recruit and select employees in a manner that will maximize

return on the investment in human resources.

Placement of personnel: It is not sufficient the right

personnel; but it is important to place them on the right job.

Human resources planning strive to place the right man on

the right job.

Prevent disruption of work: The costs of work disruption

due to unavailability of required human resources can be


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very high. Human resource planning aims to ensure the

timely availability of the right number and kind of people

for the smooth running of the organization.

Control costs: An important objective of human resource

planning is to reduce or control labor costs by maintaining a

proper balance between demand for and supply of human

resources. Human resource planning seeks to cut and save

costs on human resources.

Training and management development: Human resource

planning aims at developing a well-trained and flexibilityworkforce. This increases the organizations ability to an

uncertain and changing environment.

*Process of Human Resource Planning

It consist of the following steps1. Analysing organizational plans

2. Demand forecasting: forecasting the overall human resourcerequirements in accordance with the organizational plans

3. Supply forecasting : obtaining the data & information about thepresent inventory of human resources and forecast the future changesin the human resource inventory

4. Estimating the net human resource requirements

5. In case of future surplus , plan for redeployment , retrenchment & layoff

6. In case of future deficit, forecast the future supply of human resourcesfrom all sources with reference to plans of other Companies.

7. Plan for recruitment, development & internal mobility if future supply ismore than or equal to net human resource requirements.

8. Plan to modify or adjust the organizational plan if future supply will beinadequate with reference to future requirements-( ref diagram)

TRANSFERSTRANSFERS


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Reshuffle of human resources is essential for the smooth

and efficient management of the organization. It also serves the

broader interests of the organization. Hence such reshuffles

popularly known as job transfers hence become very common in

modern business organizations.

Job transfers carried out on a routine basis in organization.

They are designed to prepare managers to take on the additional

responsibilities by providing them with experience in different

areas of the firm. Most of the job transfers are considered to be

lateral promotions; that is the manager is placed in a position that

carries similar authority and responsibility but in a different partof the firm.


Yorder and associates have defined job transfer as a lateral

shift causing movement of individuals from one position to

another usually without involving any marked change in duties,responsibilities, skills needed or compensation.

Transfers may be initiated either by the company or the

employee. A company may initiate transfer to place employees in

positions where they are likely to be more effective. Similarly,

employees may initiate transfer to locations where they are likely

to get greater satisfaction.

TRANSFER POLICYTRANSFER POLICY


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Every organization should have a just and impartial policy

concerning the transfers of employees. It is important that every

employee knows the policy. A transfer policy serves as a guide

post for managers in affecting transfer policy.

A good transfer policy should satisfy the following conditions:

It should states the types of transfers (departmental or

interdepartmental) and the circumstances under which

transfers will be made.

The persons who have the authority to order transfers.

Usually the person in charge of that department handles

transfers in each department. The HR department usually,

has a big say in transfers.

The effect of transfer on pay and seniority should be

clearly mentioned.

The facilities (leave, special, allowance for shifting place)

available to transferred employee should be clearly stated.

The transfer policy should state the conditions under which

personal requests of the employees for transfer will be

entertained.

All transfer decisions should be communicated to the

employee in writing.


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TYPES OF TRANSFERSTYPES OF TRANSFERS

Employee transfer may be classified in to three types based

on its purpose:

Transfers that are affected for the training and

development of the employees.

Transfers made for adjustment of varying volumes within

the organization.

Transfers designed to correct the problem of poor

employee placement.

The common types of transfers are:

Production transfers: When there is excess manpower in

one department or branch in the organization, they are

transferred to other departments or branches in order to

lay off. The main purpose of such transfer is to prevent lays

offs and stabilize employment.

Replacement transfers: these types of transfers are

applied for the protection of senior or long serving

employees. Such transfers are made when the operations of

the organization are declining and hence a long-standing

employee replaces a junior or new employee.

Versality transfer: Versality transfers are affected togive the employee a chance to learn various skills involved in

different jobs. The purpose of such transfers is to develop

and all round employee with varied experience. He is

prepared for future positions.


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Shift Transfers: Shift transfers are routine in industries

where work is in process for 24 hrs or in three shifts. Such

transfers are usually effected on rotation basis but they are also

effected for personal reasons of an employee such as marriage,

child - care, age parents etc.

Remedial Transfers: Remedial Transfers are affected to

correct the wrong placement of the employee or shift an

inefficient employee who ids not carrying out his job

satisfactorily. The wrongly placed employee is placed in a

more suitable job. Such transfers protect the interest ofthe employees.

Penal Transfers: The management may transfer an

employee from one position to another as punishment for

undesirable acts performed by him. In such transfers, the

employee is shifted to less important position in the

organization.

PROMOTIONSPROMOTIONS

Promotion refers to advancement of an employee to a higher

post carrying greater responsibilities, higher status and better

salary. Promotion puts an employee or executive on a career path,

which goes upward.

On being promoted, promoters duties and responsibilitiesincrease, and the higher ones goes in an organization the greater

is the effect of the employees decision on the working of the

organization.


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Promotion is upward movement of an employee in the

organizations hierarchy, to another job commanding greater

authority, higher status and better working conditions. Generally,

when an employee is assigned a higher-level job with more pay and

powers, he is said to be promoted.

DEFINITIONSDEFINITIONSAccording to Scott and Clothier, a promotion is a transfer of an

employee to a job which pays more money or one that carries


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some preferred status.

CHAIRMAN AND MANAGING DIRECTOR

EXECUTIVE DIRECTOR

SCALE VII: GENERAL MANAGER

SCALE VI: DEPUTY GENERAL MANAGER

SCALE V: ASSISTANT GENERAL MANAGER

SCALE IV: DIVISIONAL MANAGER

SCALE II: MANAGER

SPECIAL ASSISTANT

CLERK

SCALE I: OFFICER

SCALE III: SENIOR MANAGER


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BASES OF PROMOTIONBASES OF PROMOTION

Organizations adopt a variety of criteria for promoting employee.

Promotion can be made on the basis of seniority or merit or acombination of both

PROMOTION BASED ON SENIORITY

Seniority implies relative length of service in the

organization. Seniority is described as The principle that an

employees relative length of service is an organization is a factor

in determining his employment rights and job opportunities in theorganization.

Promotional systems that are based on seniority place a

premium on length of service and job experience. I.e. those

employees who joined the organization first should be the first

choice for promotions. Seniority suggests that employees should

be given preference in various aspects of employment based on

the length of their service.

The use of seniority as the basis of promotion is based onthe assumption that the longer a person does a job, the more he

learn from it. This experience gives him greater knowledge of the

organization and jobs related to his own, hence he is more

suitable for promotion.

PROMOTION BASED ON MERIT

This system of promotion takes in to account theknowledge, skills and performance of an employee it stresses on

the ability of the employee in deciding promotion. Under this

system the best performing employee is promoted.


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PROMOTION BASED ON SENIORITY-CUM-MERIT

As both seniority and merit-based systems of promotion

have plus and minus points, may organization use a promotional

system based on a combination of seniority and merit.

Before using this system, it is essential that the management

clearly state the following details:

1. The minimum length of service to be eligible for promotion.

2. The relative weight age assigned to merit and seniority.

3. The minimum performance and qualifications essential to beeligible for promotion.

PROMOTIONAL POLICIESPROMOTIONAL POLICIES

Every organization should develop a sound policy regarding

promotion of its employees. The promotion policy should formally

state the organizations broad objectives. Employees are likely to

be frustrated and restless in the absence of sound promotionpolicy.

The main characteristics of a good promotion policy are as

follows:

Policy statement: The sound promotion policy has a policy

statement. It is statement of the ratio of internal

promotions to external recruitment at each level, the

method and procedure of selection, and qualifications

desired.


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The policy statement must clearly state whether

vacancies are to be filled up primarily from within the

organization or by recruitment from outside.

Basis of promotion: The basis of promotion must be clearly

specified. The weight age to seniority and merit must be

clearly stated. Ideally, an organization should try to strike a

balance between seniority, merit and future potential of the

employee.

Promotion charts: A promotion charts conveys to the

employees the avenues of advancement available to them. Ina promotion chart each position is linked to several other

positions can be made.

Communication of policy: The organization should

communicate its promotion policy in writing to the

employees and the unions. If the organization is secretive

about its promotion policies, employees will become

suspicious of the managements intentions.

Career planning: The promotion policy should be in line with

employee career planning. This will avoid sudden spurt

promotion followed by drought (long periods when there are

no opportunities for promotion.)

Detailed records: A sound promotion policy ensures that

detailed records of employee service and performance are

maintained.


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Employee training: The organization must prepare the

employees for promotion through suitable training on the

job or in professional institutions or through job rotation

and conferences.

Consistency: The organization must be consistent in its

promotion policies. It should be applied uniformly regardless

of the person concerned.

Diagram

Demand & Supply forecasting techniquesFactors affecting HRP-notes in class

HRIS-notes in class

VRS-notes in class

Outsourcing-notes in class

Pinkslip/retrenchment /downsizing/separation-notes in class

Contracting & subcontracting- notes in class

B. JOB ANALYSISB. JOB ANALYSIS

The success of any organization depends on the right man

on the right job. Matching the man to the job and the job to the

man is the key to the efficient running of an organization. The

purpose of job analysis is to provide a detailed information and

description about the job.

Job analysis provides information about why job the job is

done, the way it is done, the equipment or machinery used, the

skill or training or education needed to perform the job, the

wages paid, the working conditions and any other special or unique

characteristics of the job.


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2.3 DEFINITION2.3 DEFINITIONWendell French defines job analysis as the systematic

investigation of job content, the physical circumstances in which

the job is carried out, and the qualifications needed to carry outjob responsibilities.

Methods of collecting job data

Merits & Demerits of Job Analysis

2.4 JOB DISCRIPTION AND JOB2.4 JOB DISCRIPTION AND JOB

SPECIFICATIONSPECIFICATION

Job description and job specification are the two major outcomes

of the job analysis process.

JOB DISCRIPTION

Job description is sometimes called as position description.

Job description is a recorded statement of the activities of thejobholder. It describes what is done on the job, how it is done

and why it is done. Job description attempts to accurately

portray job content, environment and conditions of employment.

It describes every aspect of the job. It is extremely useful in

differentiating one job from another. The job description

document usually contains the following information:

Job identification: Information regarding the job title,code number of the job, department or division where the

job is located and so on is provided over here.

Job summary: It describes the activities or tasks

performed on the job.


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Job duties and responsibilities: This is the heart of the

job description. It describes the duties performed and the

frequency of each duty. Responsibilities such as supervision,

custody of money, supervision and training of staff are

described in this part.

Working conditions: This includes the physical environment

of the job, risks in the workplace and possibilities of their

occurrence and so on.

Machines, tools and equipment: The name and types of themajor machines and tools used on the job are described

here.

Social environment: This part describes the size of the

work group, interpersonal interactions required to perform

the job.

Supervision: It states the extent of supervision given orreceived, the number of people supervised along with their

designation.

Relation to other jobs: In this part the jobs immediately

below and above are mentioned. This provides an idea of the

relationship between different aspects of the work.

Job description acts as an important resource for:

1. Describing the job to potential candidates

2. Guiding new employees in what they are specifically

expected to do and


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3. Comparing the employees actual activities with the

ones stated in the job description.

Job description is an important document that helps to identify

the job and gives a clear idea of what the job is. A good job

description provides a detailed and clear picture of the whole job.

JOB SPECIFICATION

Job specification is also referred to as man specification or

employee specification. Job specification is a statement of the

minimum qualities required in a candidate for successful

performance of the job. It describes the personalcharacteristics that an individual must process in order to

perform the job effectively.

Based on the information acquired through job analysis, job

specification identifies the knowledge, skills, and abilities needed

to do the job effectively. Although the specific items mentioned

in the job specification may vary, they usually include following

specifications:

1. Qualifications and experience2. Physical characteristics (height, weight, physique, eyesight,

motor coordination)

3. Psychological characteristics (intelligence, analytical ability,

concentration, memory, judgment, interests)

4. Social characteristics (emotional intelligence, interpersonal

skills, leadership, cooperativeness)

5. Other characteristics (age, sex, family background)

Job specification tells what kind of person is required for a

given job. It is an important tool in the recruitment and selection

process as it helps the selectors to determine whether a

candidate has the personal characteristics required to succeed on


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the job. Job specification tells what kind of a person to recruit

and for what qualities that person should be tested.

JOB EVALUATIONJOB EVALUATION

It is the vital that organizations pay their employees fair

and competitive salaries in order to attract and retain their

talented and competent employees. If the salary is poor then the

employee will leave the organization for another that will pay

more. However paying more than what an employee deserves will

prove costly and counterproductive.Job evaluation means to determine the relative worth of

jobs in an organization. It is the process of determining the value

of a job in order to fix some salary or wages. Job evaluation is

done on the basis of information obtained through job analysis.


Wendell French defines job evaluation as a process ofdetermining the relative worth of the various jobs within the

organization, so that different wages may be paid to jobs of

different worth.

OBJECTIVES OF JOB EVALUATIONOBJECTIVES OF JOB EVALUATIONThere are several objectives of job evaluation:

To develop a consistent wage policy.

To determine the rate of pay for each job which is fair and

equitable in relation to other jobs in the organization or

industry?


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To ensure that like wages are paid to all qualified employees

for like work.

To eliminate inconsistencies and inequalities in wages.

To establish a rational basis for fixing incentives and

different bonus plans.

To develop a framework for periodic review and revision of

wage rates.

To provide a basis for wage negotiations with trade unions.

To maximize if not eliminate wage discrimination on the

basis of age, sex, caste, religion etc.* Process of Job Evaluation:

The basic procedure of job evaluation is to compare the content of jobsin relation to one another , in terms of their skills or responsibility orsome other requirement. When comparable factors are available jobs

can be evaluated more systematically. Each job is compared with allthe others using the same factors , sub-factors, and number ofdegrees.

Following steps should be install to take up a job evaluationprogramme.

i)Analyze and prepare Job Description : This requires the preparation ofa job description and also an analysis of job requirements forsuccessful performance.

ii) Select and prepare a Job Evaluation Plan : This means that a jobmust be broken down into its component parts, i.e it should involve theselection of factors, elements needed for the performance of all jobsfor which money is paid, determining their value and preparing writteninstructions for evaluation.


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iii) Classify Jobs: This requires grouping or arranging jobs in a correctsequence in terms of value to the firm, and relating them to the moneyterms in order to ascertain their relative value.

iV) Install the Programme: This involves explaining it to employeesputting it to operation.

V) Maintain the Programme: Jobs cannot continue without updatingnew jobs and job changes in obedience to changing conditions andsituations.

Methods of Job Evaluation : Notes in class

RECRUITMENTRECRUITMENTThe acquisition of human resources for the organization

takes place through the process of recruitment and selection.

After the human resource needs of the organization are

identified through human resource planning, the next step is that

of recruitment and selection. One of the most difficult tasks of

the human resource manager is that of recruiting and selecting

the right kind of people for the organization.Recruitment is the first step towards procuring qualified

manpower for the organization. The process of acquiring human

resources begins with recruitment, continues with selection and

ceases with placement.


DeCenzo and Robbins describes recruitment as the process ofdiscovering potential candidates for actual or anticipated

organizational vacancies.

It is a linking activity aimed at bringing together those with

jobs to fill and those seeking jobs.


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A number of factors such as the size of the organization,

the employment conditions in the community, reputation of the

organization, working conditions and salary and benefits offered

by the organization affect the recruitment process.

Ideally the recruitment process should ensure that for

every position available in the organization, there are sufficient

numbers of qualified applicants. In very large organization,

recruitment is a complex and continuing process that demands

extensive planning and effort.

SOURCES OF RECRUITMENTSOURCES OF RECRUITMENT

The various sources of recruitment may be broadlyclassified in two broad categories: Internal and external sources.

Some organizations draw their human resources internally i.e.

from within the organization while others draw externally i.e.

from outside the organization.

INTERNAL SOURCES OF RECRUITMENT

The internal sources of recruitment focus on finding

qualified applicants within the organization. The organization

itself is the best source of applicants for positions above the

entry level. The internal sources of recruitment may be of the

following type:

Promotion: promoting qualified and experienced employees

may fill vacancies in the organization. Promotion refers toshifting an employee to a higher position carrying higher

status, responsibilities and pay. Promotion may be based on

performance or seniority depending upon the organizations

promotional policies.


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Transfers: Another common way of filling up vacancies is

through internal transfers. An existing employee who is

experienced and capable is transferred from one

department in the organization to another. In transfers, the

shifting of the employee occurs without any major change in

his status and responsibilities.

Job posting (internal advertisement): A popular method of

finding applicants is through job postings or internal

advertisements. Job posting involves announcing job opening

to all current employees through notices on the bulletinboards or through the company newsletters. Some

organizations have developed computerized job posting

systems so that employees can obtain information on their

on their computer screens.

Job posting carry information about the nature of the

position and qualifications needed, and any employees who is

interested in the job may apply for the same. Job

announcements ensure that employees are aware ofopportunities to move up in the organization.

Recall or retired and ex-employees: When an organization is

not able to find a suitable candidate for a vacancy, former

employees of the organization who have retired or had quit

the organization may be recalled.

Employee referrals: Another way to find applicants withinthe organization is through employee referrals. Informal

communications among managers may lead to the discovery

of a good candidate for the job. Employee referrals may be

for candidates within the organization as well as outside the


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organization. Some organizations even offer rewards to

employee whose referrals get selected in the organization.

Skills Inventories: Many firms have developed computerized

skills inventories of their employees information on every

employees skills, educational background, work history, and

other important factors is stored in the organizations

database. The skill is used to identify employees with the

attributes needed for a particular job.

A new development in this area is the Human Resource

Information System (HRIS). It is a computerized system thatassists in the processing of HRM information. It provides skill

inventory information.

The HRIS is designed to quickly fulfill the personnel

information needs to the organization. It permits the

organization to track most information about an employee and

about jobs and retrieve that when it is needed. HRIS is

extremely useful for storing employment, training and

compensation information on each employee.EXTERNAL SOURCES OF RECRUITMENT

Organizations turn to external sources of recruitment when the

internal sources of fall short. New organizations rely largely on

external sources to meet their recruitment needs. However even

well established organizations turn to external sources when

candidates with the desired skills, knowledge and qualifications

are not available in the organizations in order to introduce newblood in the organization.

There external sources of recruitment are:

o Campus recruitment: Educational and training institution

like the IIMs, IITs and other professional colleges are a


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good source of recruiting qualified and trained personnel.

Many educational institutions have placement departments

who forward and names of graduating students to

interested organizations and invite them to conduct campus

interview.

o Advertisements: Advertisements in journals, newspapers

and magazines with wide circulation is a very popular source

of recruitment. However care should be taken in preparing

the advertising so that only qualified applicants respond.

The advantage of this method is that a single

advertisement can reach millions of potential recruits. The

cost per persons is very low.As more and more people surf the inter net, the Internet as

a medium of advertising is becoming increasingly popular.

o Employment agencies: Private consulting firms carry out

recruiting functions on behalf of organizations. Firms of

such kinds are also referred to as head hunting firms.

These firms carry out all the functions of recruitment and

selection and provide organizations with candidates as per

their requirements. The employment agencies charge a feefor their services. ABC consultants, personnel search are

some of the top employment consultants in India.

o Employee recommendations: A very good external source of

recruitment is a recommendation from a current employee.

An employee will rarely recommended someone unless he is

certain that the individual will perform adequately. This is

because recommendations reflect on the recommender andhis reputation is at stake.

o Professional bodies: Professional bodies like the institute

of chartered accounts, Institute of company secretary

maintain a record of qualified persons in their specialized


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fields. Organizations can approach such bodies to meet

their specific needs.

o Deputation: In deputation the services of an experienced

employee of another organization are borrowed for a fixed

period of time. This source of recruitment is usually for

senior positions in the organization. The person on

deputation serves the borrower organization for a period of

time and then returns to the lender organization.

o Poaching: Poaching involves attracting talented and

competent persons from rival organization by offeringbetter terms and conditions of employment with regard to

salary, designations, working conditions, additional perks and

benefits. Poaching is considered to be unethical as

employees often carry with them sensitive information that

could hurt the interests of their former organization.

o Unsolicited or casual applications: Often organizations

receive unsolicited applications for jobs in the form oftelephone calls, letters, and e-mails. Organizations do not

throw such application but maintain a record of these

applications as they serve as a prospective source of

manpower.

E RecruitingE Recruiting

Perhaps no method has ever had as revolutionary an effect

on recruitment practices as the Internet. There are respective

company websites devoted in some manner to job posting


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activities. Currently, employees can electronically screen

candidates, soft attributes, direct potential hires to a special

website for online skill assessment, conduct background checks

over the Internet, interview candidates via videoconferencing,

and mange the entire process with web based software.

Companies benefit immensely through cost saving, speed

enhancement and extended worldwide candidate reach which the

Internet offers. From the job seekers perspective, the Internet

allows for searchers over a boarder array of geographic and

company posting than was possible before.

There are negatives associated with Internet recruiting.

For example, broader exposure might result in many unqualifiedapplicants applying for jobs. More resumes need to be

interviewed, more e-mails dealt with and specialized applicant

tracking software may be needed to handle the large number of

applicants who lack access to Internet.

Problems notwithstanding, both job givers as well as job

seekers find Internet as the most effective source of recruiting

and its usage in the days to come will be all pervasive.

Merits & Demerits Notes in class

SELECTIONSELECTION

Selection is the process of choosing the most suitable

person /s out of all the applicants. It is the process of choosing

the required qualifications and skills to perform the job

successfully. Selection involves screening of candidates.Screening is a process of reducing the number of applicants to a

few by way of rejecting the candidates who are not found eligible

as per the qualifications prescribed.


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Selection of employees is a managerial decision. It is the

management, which fixes the criteria for selection.

DEFINITION

According to Thomas Stone, selection is the process of

differentiating between applicants in order to identify and hire

those with a greater likelihood of success on the job.

SELECTION PROCEDURESELECTION PROCEDURE

Organizations make large investments to get the right kind of

people; hence, a sound selection procedure is necessary. Theobjective of the selection procedure is to determine whether an

applicant meets the qualifications for a specific job and to choose

the applicant who is the most likely to perform well in that job.

Although organizations differ in terms of which selection method

to use, most of the follow a fairly standardized set of steps. The

various steps involved in the selection procedure are as follows:


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SELECTION PROCEDURE

1. Preliminary interview: This is the first step in the selection

procedure. The objective of this interview is to discard

those candidates who are totally unqualified for the job.

Only suitable candidates are retained for further screening.

Preliminary interview saves time and efforts of both the

organization and the candidate. It avoids unnecessary

waiting for candidates who have no chance of being hired.The organization too benefits, as it does not waste time and

money on further processing unsuitable candidates.

The preliminary interview is the first contact of an

individual with the organization. Hence it is vital that the

PRELIMINARY INTERVIEW

APPLICATION BLANK

SELECTION TEST

EMPLOYMENT INTERVIEW

MEDICAL EXAMINATIONS

FINAL SELECTION

REFERENCE CHECKS


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staffs who are involved in this step are extremely

courteous, receptive and polite with the rejected candidate.

The candidates who seem suitable are given the application

blanks to fill.

2. Application blanks: This is a very popular method of getting

information from the candidate. The candidates are

supplied a blank specially prepared application form for

filling it with information relating to educational

qualifications, age, experience, training, past experience,

hobbies, interests etc.

While some organizations have specially preparedapplication forms, others ask candidates to prepare on their

own.

The application form has several benefits:

It helps to eliminate those candidates who are lacking in

education and experience.

It helps in formulation questions for the interview.

Information obtained through application forms can be used

for future reference.

3. Selection test: The selection or employment test is

the next step in the selection procedure. A variety of

psychological tests are used to obtain information about

various aspects to an individuals behavior, performance and

attitudes. Use of such tests is becoming increasingly

popular.

The different tests help in: Identification of differences among individuals.

Identification of the maximum and minimum

potential of the candidates.

Identification of skills, abilities, talents,

interests in the candidates.


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4. Employment interview: The interview is a widely used tool

of selecting prospective candidates for the organization. It

gives the employer and prospective employee an opportunity

to meet each other.

The selection or employment interview serves three

purposes:

It is an opportunity to obtain additional information

about the candidate and determine his suitability for the

job.

It provides information to the candidate about the

organization, the specific job for which he has applied andpersonnel policies.

It helps to establish a friendly relationship with the

candidate and motivate suitable candidates to join the

organization.

Although the employment interview is very popular,

doubts have been raised as to its reliability in selection of

the right candidate.

5. Medical examination: Applicants who have successfully

passed the above steps are now sent foe a medical

examination. Medical examination is for the following

reasons:

It helps to determine whether the candidate is mentally and

physically fit to perform the job.

It prevents employment of employees suffering from

contagious diseases. It saves expenditure that the organization may have to

incur for medical treatment of the candidate.

6. Reference checks: Applicants are frequently asked to

provide the names and address of two or three persons who


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know them well. These persons are commonly referred to as

referees or references. These persons may be previous

employers, heads of educational institutions or other public

figures.

The organization contacts the referees through mail

or by telephone to know more about the candidates

character, skills, potentialities etc. The feedback and the

comments of the referees influence the selection of the

candidate. Candidates who are evaluated positively by

referees are selected while those who are evaluated

negatively are rejected.

7. Final selection: The candidates who have cleared all

the above obstacles are recommended by the human

resources department to the concerned department for

their final approval.

On the final approval of the concerned department, the

appointment letter is issued to the candidate. The appointment

letter contains details regarding the pay scale, the post, the rank,other terms and conditions of employment and the date by which

the candidate should join the organization. Sometimes a contract

is signed between the candidate and a representative of the

organization.

INDUCTIONINDUCTION

When a new employee joins the organization, the first few

days are ones of great uncertainty. Even the calmest and most

competent employee feels a little nervous, anxious and insecure.


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This is because he is unfamiliar with the new surroundings, new

coworkers and new job procedures. Hence, most organizations

offer some kind of an induction program to help new employees

get acquired with the company and make a productive beginning on

the job. Induction programs are also commonly referred to as

orientation programs.

DEFINITIONDEFINITIONMichael Armstrong defines induction as the process of receiving

and welcoming employees when they first join the company and

giving them the basic information they need to settle down

quickly and happily and start work.

Induction is the process of familiarizing of the new

employee with the job and the organization. It includes

introducing the new employee to his or her work unit.

According to Armstrong, induction has five main aims:

1. To put new employee at ease.2. To create employee interest in the job and the

organization.

3. To provide basic information about working conditions.

4. To indicate the standards of performance and

behavior expected from the employee.

5. To tell the employee about training arrangements and

how he or she can progress in the company.

3.6 Importance of induction3.6 Importance of induction

Induction is extremely important as a new worker often

finds himself completely at sea in the workplace. Induction


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assumes even greater importance when the new employee is new

to the town / city or in some cases to the country.

Smooth entry: To make the entry of the new employee in to

the organization a smooth one as initially everything is

strange and unfamiliar to him.

Favorable attitude: To establish a favorable attitude to

the company in the mind of the new employee so that he will

stay on in the organization.

Quick adjustment: To obtain effective output from the newemployee in the shortest possible time.

Reduce employee turnover: Research has found that

employees are far more likely to resign during their first

few months after the joining the organization. Induction

reduces the likelihood of employees leaving the organization

quickly.

Increasing commitment: A proper induction makes the feel

that the organization is worth working for. This increases

employee commitment as he identities himself with the

organization, wants to stay with and is prepared to work

hard on behalf of the organization.

Understand organizational norms: Induction programs

convey to the new employee what the organization expectsfrom him in terms of behavioral norms and the values that

he should uphold.

Induction provides an opportunity to inform people of

the way things are done here. This reduces any doubts or

misconceptions that the new employee may be holding.


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Develop relationships: Induction helps to foster a close and

cordial relationship between the newcomers and the old

employees and their supervisors.

Other information: Induction serves as an opportunity to

provide other necessary information such as the location of

cafeteria, toilets, rest periods, leave rules.

ENTRY INTERVIEW FOR EFFECTIVE INDUCTION OF NEW

ENTRANT

Objectives

To ensure introduction of the new entrant to the

institution, its culture, tradition, ethos, and work ethics.

To have a formal interaction between the head of the

branch / office and the new entrant in order to haveintroduction to the job and colleagues.

To provide psychological assurance that he will be looked

after and cared in the new place.

Help the employee to shed apprehensions, if any, and feel

free in the environment.

To initiate the socialization process of the employee in the

organization on a positive note, so that the process of

emotional integration is fast and smooth.


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SYSTEM The branch manager / section In-charge conducts the

entry interview of the entry interview of the new

employee on the first first day immediately on his

joining the Branch / office.

The interview has to be conducted in a friendly

atmosphere and the employee is made to feel at ease.

Through the interview the manager elicits the

background of the employee family and profession,

his goals in life, his expectations, his capabilities andpotential.

The manager volunteers information about the banks

history, its rich heritage and culture, its mission and

goals to make the employee aware of the duties

expected from him. He also gives general information

about the Branch / office, the people working there

and also the place.

The manager finds out the needs of the employee at

the new place and helps him to settle.

The manager to introduce the new employee to his

colleagues.

A handbook step into the family for an enrichingpartnership is given to the employee.

TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT


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A well-trained workforce is the greatest asset of an

organization. After the employee is selected, the next important

task for the organization is to see that the employee adjusts as

quickly as possible on the job and performs his job efficiently. In

order to do so, it is essential that the employee is properly

trained and prepared for the tasks that lie ahead.

An organization cannot function effectively when its employees

are not trained well. Lack of training is often the cause of: Poor

productivity, Errors and wastages, Unsafe working practices and

Dissatisfaction at work.

Training is basically the management of learning. The

objective of training and development is to raise the level of

performance in one or more aspects. This is achieved either by

providing new knowledge and information relevant to a job or by

teaching new skills or by imbibing an individual with new attitudes,

values, motives and other personality characteristics.

DEFINITIONDEFINITIONAccording to Edwin Flippo, training is the act of increasing the

knowledge and skill of an employee for doing a particular job.

Training prepares employees to perform their present job

even better and more efficiently. It also prepares the employee

for higher positions with increased responsibilities.

TRAINING METHODSTRAINING METHODS

A variety of methods have been developed for the training of

managers and senior executives in the organization. The different


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methods of management development may be classified as on the

on the On-the-job and Of- the-job training methods.

On-the-job training

1) Coaching: In coaching a superior guides and instructs a

junior manager. He trainees the junior in the knowledge and

skills required to do the job. This method emphasizes on

learning by doing.

In this method, the superior serves as coach who helps

the training grow and improve his performance on a day-to-

day basis. The coach sets challenging goals for the training,

informs him what is to be done and evaluate the trainees

progress towards the goals.

2) Job rotation: Job rotation is a popular management training

technique. It involves movement or transfer of managers

from one position or job to another on a plant basis. They

are move from one managerial position to another according

MANAGEMENT DEVELOPMENT PROGRAMS

On-the-job Training

1) Coaching

2) Job rotation and

transfers

3) Understudy assignments

4) Committee assignment

5) Project assignment

6) Multiple assignment

Of-the-job Training

1) Lecture method

2) Case studies

3) Conferences

4) University training

5) In-basket method

6) Wilderness training


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to a rotation schedule. Job rotation is also called as position

rotation and cross training.

The aim of job rotation is to broaden the knowledge,

skills and outlook of managers. It exposes the managers to

different jobs and department to acquaint them with all the

facets of the organization. It thus widens the managers

horizons.

Job rotation is frequently used with junior executives

and fresh college graduates who are just beginning their

working careers. Through job rotation, trainees gain

perspective on various aspects of organizatiozational life.

They have the opportunity to see and be seen by highermanagement, and to learn to direct experience where they

might best apply their knowledge, abilities and interest.

3) Understudy assignment: In the understudy method, the

trainees work directly under individuals whom they are likely

to replace. The objective of understudy assignments is to

train an employee to succeed in a specific position. The

employee may work as an assistant manager to a superiorwho trains him to shoulder his responsibilities in due course.

4) Committee assignments: Organizations frequently set up

committees and panels to investigate and study various

problems confronting the company. For example, grievances

committee, pay revision committee and so on. Trainees are

often placed in such committees so that they get a fee and

developed better understanding of the various issues facingthe organization.

5) Project assignments: In this method, a number of trainings

executives are put together to work on project i.e. closely

related to their work or department. The group called


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project in or task force studies the problem and find

appropriate solutions.

In this method the trainees learned the procedures

and techniques involved in the particular work and the inter

relationships between their department and other

departments.

6) Multiple management: This was developed Charles P. in the

U.S.A. In this method a junior board of young executives is

constituted. This board is given the authority to discuss any

problem that the senior board would discuss. They discuss a

wide variety of subjects and make recommendations to theboard of directors.

Of-the-job Training Methods

1) Lecture method: Lecture method is one of the most popular

methods. It is widely used all over the world in the field of

education as well as in the field of industrial training.

A lecture is a prepared presentation of knowledge,information, and viewpoints in order to make the learners

accept what the lecturer says. The key word is prepared.

Presentation of the lecture will spell the difference

between acceptance or rejection, interest or boredom.

2) Conferences: The conference method is commonly used

when the number of trainees is small. The conference

method encourages active participation and leads to greatertwo-way communication. The conference method permits

the participants to pull their ideas together discuss the

problem from all points of view express themselves, become

aware of the opinions of other, ask questions and seek

clarifications.


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The effectiveness of the conference method is

strongly influence by the skills and personality of the

trainer. A good trainer is able to get all the participants

involved in the discussions. He knows when to lead the group

and when to allow others to lead the discussions.

The attitude of trainees, their verbal communications

skills and eagerness to acquire knowledge and participate in

the discussion also plays a crucial role in the success of the

training method. The conference method applies the

learning principles of motivation and feedback in training

situation.

3) The case study method: The case studies, a trainee come

face to face with business situations similar to the ones

they are likely to handle future. Case studies consist of

problem situations to which the group has to find the best

possible situation. Case studies are extremely popular in

executive training programs.

In a typical case study, a complex problem or case of

the kind daily faced by the manger and executives ispresented to the trainees prior to a general meeting. The

trainees are expected to familiarize themselves with the

information and to find additional relevant information.

When they meet as a group, each member interprets the

problem and offers a solution. Then a systematic discussion

takes place. Different view are exchanged, the trainees

come to appreciate the different perspectives on a problem

and consequently different approaches to solving it. Usuallythe cases have no single correct solutions. The group leader

does not suggest and answer. The group as a whole must

reach an agreement and resolve the problem.

Through case studies, the trainees learn to diagnose

business problems, understand the critical factors in


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business and to take decisions with regard to its effects on

the organization as a whole.

4) Training in universities: Training programs required a great

deal of planning, tremendous infrastructure and trained

experts to conduct them. A major constraint is a cost

factor, which is very high. Hence many organizations depute

their employees for the different courses conducted by the

universities and other reputed institutions. Universities

have recognized the needs of the industrial community and

have devised several programs to cater to the needs of

organizations. The programs may be a very brief one-dayaffair or could extend to one year or more. To suit the

convenience of the working employee, the courses are

conducted in the evening or on weekends. The courses over

a wide variety of subjects, such as

Business policy and strategy

Human relations

General management functions

Communications Accounting

Industrial relations

Marketing

Quantitative approaches

5) In-basket method: In this method of training, the

trainee is placed in a simulated situation where he is given

basketful of items that a manager is likely to encounter onthe job such as letters, reports, memoranda, notes and

other related materials. The trainee has to respond and

make decisions on these items. The trainees decisions are

then evaluated and he is given feedback on the nature of

actions he takes.


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6) Sensitivity training: In sensitivity training, trainees

meet in small groups for a few hours every day. The training

often takes place at a comfortable retreat, removing

trainees from the daily pressures and routines of the job

and family life.

The trainers assume a passive role. There is no agenda

or format. In the beginning the discussion is very unclear

and unstructured and the topic of the discussion does not

matter. The important thing is that something to bediscussed and someone be involved in the process. In time

trainees begin to discuss themselves and one another,

pointing out their likes and dislikes, strengths and

weaknesses. Thus they examine feelings, experiences,

expressions, gestures, and behaviors, thoughts, which are

often taken for, granted in every day life.

Sensitivity training must be used with care. It has

proved to be traumatic for some individuals. The franknessand criticism that take place in sensitivity training can be

more hurting than helping.

7) Wilderness training: This training method is a recent

development. In this method executives and other

employees are involved in outdoor-based programs. The

objective of such program is to foster individual growth and

development, increase self-confidence, risk taking and buildleadership, teamwork skills.

In most wilderness programs, the learnings takes

place in a wilderness areas involving such activities as river

rafting, mountain climbing or scaling obstacles. Group


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discussions and short lectures are also included in such

programs.

There is no ideal or best method of management

development.

Each organization must design its own particular program

based on:

The climate in the organization.

The organizational level for which training is required.

The particular characteristics of the personnel to be

developed. The economic resources that the organization can allot

for training and development.

IMPORTANCE OF TRAININGIMPORTANCE OF TRAINING

Organizational training programs are very costly. When an

employee is being trained, not only the organization spending

money on him but it is also losing in terms of manpower as the

employee is away from work. However despites his loss, goodorganizations spend a considerable amount of time, effort and

money to train their employees. They feel that training of

employees is an investment, which will reap benefits and profits

for the organization in the future.

The major benefits of training are:

Higher productivity and profits: Trainings improves the

knowledge and skills of employees and hence leads to

greater efficiency in the work place. The more efficient an

employee, the higher will be the production, which in turn

will contribute to greater profits for the organization.


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Optimal use of resources: well-trained employees are able

to make optimal use of their resources (manpower,

materials, machinery and capital.) This helps in reducing

cost and time wastages.

Job satisfaction: Employees who have received training and

know their job well are a confident lot. This increases their

morale and leads to higher job satisfaction.

Safety: Training reduces errors and accidents on the job

by making the employees more competent and able at theirwork. Training helps to improve safety standards at work.

Reduces stress: An employee who knows his job well is less

likely to experience stress. Besides training in stress and

time management enable the employee to cope with

frustration and tension.

Career development: Training prepares the employees forhigher positions by developing the necessary skills and

attitudes. It improves employees prospects for

advancement and promotion within the organization. Training

prepares the employee for opportunities that will come

during his career.

For ref :TRAINING AT SBIFor ref :TRAINING AT SBI

State Bank of India is Indias largest public sector bank. It

is the second largest employer of people after the Indian

Railways. The bank currently over 2.15 lakhs personnel in various


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cadres. SBI has a separate HRD division, which looks in to the

training interests of the bank.

The SBI training philosophy is proactive, planned and

continuous. It is an integral part of organizational development.

It seeks to impart knowledge, improve skills and reorient

attitudes for individual growth and organizational effectiveness.

The HRD mission of SBI is to enable every individual to

realize and activate his potential, as to contribute to the

achievement of the banks goals and derive satisfaction there

from.

The training wing in SBI consists of nearly 65 training

centers established at various places in the country. There are

three colleges one each specialized in agricultural development,

information and technology and general banking.

At the apex level, an academy has been established at

gurgaon near Delhi. This academy provides training to the topmanagement of SBI and also to officials from other banks. Every

training center is equipped with modern infrastructure facilities

and has a suitably trained faculty.

The management of the training system is overseen by the

Chief General Manager at the central office of the bank in

Mumbai.

At the training center, various programs are conducted

throughout the year for employees in various cadres. The

programs are signed in such a manner so as to help develop the

employees ability to work more efficiently and without mistakes.

This ultimately benefits the employee as well as the institution.


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The training programs may classified in to three main divisions

1. Core Program

2. Role Related Program

3. Factitional Program

These programs are developed for all categories of employees.

They are so designed to provide full knowledge of each subject

needed for that category. Each program is designed keeping in

mind the following details:

Duration

Target group Eligibility

Objectives

PERFORMANCE APPRAISALPERFORMANCE APPRAISAL

Once an employee has been selected, trained and placed on

the job, the next step is that of Performance Appraisal.

Performance appraisal is the process of evaluating theperformance of the employee in the organization. Performance

appraisal is the process by which the management finds out how

well or how badly the employee is performing on the job.

Performance appraisal is beneficial both to the employee as

well as to the organization. Performance appraisal is a kind of

feedback to the employee. It enables him to understand whether

his work is satisfactory r whether he needs any improvement inhis performance. Performance appraisal reveal to an employee his

strengths and weaknesses, enhancing his self-confidence in some

areas and encouraging him to improve his performance in other

areas.


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Performance appraisal provides feedback to the

management whether an employees is up to the mark and whether

he is contributing to the attainment of organizational goals.

Important management decisions such as promotions, transfers,

demotions, raises in salary, training and so on are

Made on the basis of the performance appraisal reports.

4.5 DEFINITION4.5 DEFINITIONAccording to the Indian National Institute of Personnel

management, performance Appraisal is a technique of assessing,

as impartially as possible, the attributes, strengths, weaknesses,

capacity and attitudes of individual employee in relation to his

job.

C. D. Fisher describes Performance Appraisal as the process by

which an employees contribution to the organizations during aspecified period of time is assessed.

Performance appraisal has three basic functions:

1. Performance appraisal seeks to provide adequate

feedback to each individual on his or her performance.

2. Performance appraisal serves as a basis for improving

or changing behavior towards more effective workinghabits.

3. Performance appraisal aims to provide data to

managers with which they may judge future job

assignments and compensation.


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MAJOR USES OF PERFORMANCE APPRAISALMAJOR USES OF PERFORMANCE APPRAISAL

Some of the major uses of performance appraisal are:

o Personnel Training: Performance appraisal provides

information about the employees strengths and weaknesses.

Once weaknesses in knowledge, skills, and abilities are

identified it can be corrected through additional training.

However appraisal should be only on job related

characteristics and training should focus on those areas of

poor performance that attributed to the individual and not

due to other factors in the work environment.Thus performance appraisal serves as a diagnostic kit for

identifying employee strength and weaknesses.

o Wage and Salary Administration: Performance appraisals

are frequently used to determine the salary raise to be

given to the employees. Increases in pay are often linked to

the employees job performance.

It is suggested that personnel development and salaryadministration should not be combined in the same

appraisal as employees become defensive. This is because:

Employees attach greater importance to raises, as

they are more immediate and real.

Personnel development loses its importance if

admitting weaknesses means a lower raise.

This problem can be overcome by having two appraisals one

for employee development and another for salary raise. It isalso suggested that the same person should not conduct the

process of employee development and salary fixation.


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o Placement: Information through performance appraisal is

useful in making placement decisions.

Trainee employees are appraised by exposing them to

various tasks in the areas of finance, marketing, accounting

etc. On the basis of their performance the trainees are

placed in the field that they performed the best.

Thus performance appraisal is useful in making optional

use of employee abilities and talents.

o Promotions: Performance appraisal is helps in identifying

the better performing employees. It helps us to compare

the performance of the employees. The performanceappraisal is useful in making promotional decisions.

However it must be remembered that promotions are not

determined by performance only. Seniority (job experience)

plays an important role. Experts suggest that the seniority

and merit may be used to make promotional decisions.

o Discharge: Performance appraisal provides evidence of

inadequate job performance by the employee. Thisinformation can be used to determinate or dismiss

employees.

In order to prevent lawsuits, organizations must maintain

proper records and documents relating to employees

performance. The organization should be able to

demonstrate that the decision to terminate the employee

was a fair one and used as the last resort.

o Job satisfaction: A fair performance appraisal maintains

employee initiative and morale leading to greater job

satisfaction.


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o Feedback: Performance appraisal provides information of an

employees weaknesses or deficiencies in knowledge, skills

and abilities that once identified can be corrected through

additional training. Performance appraisal can also be used

determine the usefulness of a training program by

determining whether an employees job performance

improved after the training period.

MODERN METHODS OF PERFORMANCE ANDMODERN METHODS OF PERFORMANCE AND

APPRAISALAPPRAISAL

The modern methods of performance appraisal focus more

on the evaluation of work results and job achievements rather

than personality traits.

The new methods of performance appraisal are as follows:

Management by Objectives: Management Guru Peter Drucker is

credited for the development of management by objectives,popularly known as MBO.

MBO involves a mutual agreement between the employee and

supervisor on goals to be achieved in a given time. MBO focuses

on results on how well employees accomplish specified goals. The

emphasis is on what employee does rather than on what

supervisors think of them or perceive their behaviors to be. MBO

actively involves employees in their own evaluations. They are not

simply graded or rated by others.

MBO consist of two phases: Goal setting and Performance

review


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Goal setting: In this place the employees meet their

supervisors individually to determine the goals to be

achieved within a specified time and discus ways of

reaching those specified goals. The goals are set by

mutual agreement between the supervisor and the

subordinate. The goals must be realistic, specific and

as objective as possible.

Performance review: In this phase the employee and

the supervisor meet after the specified period of time

and discuss the extent to which goals were met. Thesupervisor attempts to solve any problems that the

subordinate faces and new goals are set. The

supervisors role is that of a listener and guide but

never that of a critic.

Assessment Centers: The assessment center in

an organization is the place where individuals are assessed

in as systematic and scientific manner as possible. Anassessment center is a place specially designed equipped for

a specific purpose appraisal.

The objective of assessment center is to evaluation of

individuals for future growth and development. The

evaluations are made not on the job but are based on

observations of behavior and on the results obtained in

psychological tests. In an assessment center a through and

complete evaluation is done of the individual his strengths,weaknesses and personality characteristics.

Techniques of assessment


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Organizations use different techniques of assessment

depending upon their specific needs and requirements. Some

of the common techniques of assessment are:

Role-playing: In this, the candidate acts out the role

of a manager in a simulated situation, showing for an

example, how he or she would conduct a job interview.

In basket test: In this form of evaluation, the

candidate is placed in a simulated situation where he is

given a basketful of items that a manager is likely to

encounter on the job such as letters, reports,memoranda, notes and other related materials. The

candidate has to respond and make decisions on these

items. The candidate is evaluated on the nature of

actions he takes.

A Leadership group discussion co-operative nature:

In this, members of a group are presented with a

problem. The individual members of the group areobserved on their contributions towards the solution

as well as for their interaction with other members of

the group.

Behaviorally Anchored Rating Scales (BARS): Smith

and Kendall developed the original behaviorally

hrm complete notes

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