ty bms hrm notes

Notes Compiled by Prof. V.S.Gopal

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 organization’s employees-its human resources-that give a bank or insurance firm its competitive edge.

WHAT IS HUMAN RESOURCE WHAT IS HUMAN RESOURCE MANAGEMENT?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 is concerned with the “people” dimensions in management. It is a process consisting of the acquisition, development, motivation, and maintenance of human resources.”

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 the management 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.


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 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 the objectives 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 today’s competitive business environment, keeping expenses down or cost containment, is a critical HRM goal.

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 employee’s 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 are satisfied 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 employee’s turnover.

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 MANAGEMENTHUMAN RESOURCE MANAGEMENT FUNCTIONSFUNCTIONS

Human resource management involves a large number of functions. 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:

Human resource planning: Human resource planning is the process of assessing the organization’s 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, them together 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 is another activity of human resource management. Staffing activities determine the composition of an organization’s 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 employee separation through resignation, discharge or retirement.

Training and development: This activity of HRM focuses on improving the performance of individuals 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 the persons 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 compensates employees 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 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.

STRUCTURE OF HUMAN RESOURCES STRUCTURE 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:


Structure of Human Resource Department

All the managers have to perform the activities or functions assigned to them by the President / Director. The most important principle about the organization of the HR department is that it should fit the needs of its business. There is no best structure to adopt but the choice of the structure should be made on the basis of an analysis of what the organization wants by way of HRM guidance and services.

HUMAN RESOURCE DEVELOPMENT

Employee education, training and development have now become a vital and extremely important part of organizational strategy. A 2000 survey of human resource managers in large organizations discovered that these managers considered training and development as their most important function.

PRESIDENT/DIRECTOR (Human Resources)

Manager

Manager

Manager Manager

Manager

Recruitment& Selection

Training & Development

Compensation& Benefits

EmployeeWelfare

EmployeeRelations


The increasing focus on the development of human resources has resulted in Human Resource Development (HRD) becoming a key and vital aspect of the HRM.

HRD is defined as “a set of systematic and planned activities designed by an organization to provide its members with the opportunities to learn necessary skills to meet current and future job demands.”According to the American Society for Training and Development (ASTD), Human Resource Development (HRD) has three primary functions:

TRAINING AND DEVELOPMENTTraining is the process of providing employees the

knowledge and skills needed to do a particular task or job. Development is the process of preparing employees for

future work responsibilities and also increasing their capacities to perform current jobs.It is the work of HRD professionals to coordinate the training and development programs and ensure that people in the organization have the necessary knowledge and skills to be effective in their position.

ORGANIZATIONAL DEVELOPMENTOrganizational development (OD) is defined as the

process of enhancing the effectiveness of an organization and the well being of its members though planned interventions that apply behavioral concepts.The focus of OD is on:Macro organizational changes: These changes are aimed at ultimately improving the effectiveness of the organization.

Micro organizational changes: These changes are directed towards improving the effectiveness of individuals, small groups, and teams within the organization.

CAREER DEVELOPMENT

Career development is described as an ongoing process by which individual’s progress through a series of stages,


each of which is characterized by a relatively unique set of issues, themes, and tasks.Career development involves two processes:Career planning: It involves helping the employee develop a realistic career plan. Assessing the skills and abilities of the employee with the assistance of an expert does this.

Career management: The focus here is on taking the necessary steps to achieve the career plan. The emphasis is on what the organization can do help in the employees development.

HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING

Human Resource Planning is based on the belief that people are an organization’s most important strategic resource. It attempts to addressThe 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


Wendell French defines human resource planning as “the process of assessing the organization’s 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 RESOURCES OBJECTIVES OF HUMAN RESOURCES PLANNINGPLANNING

The 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 main objective of human resource planning is to maintain and improve the organization’s 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 developing appropriate 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 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 flexibility workforce. This increases the organization’s ability to an uncertain and changing environment.

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.

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 out job responsibilities.”


2.4 JOB DISCRIPTION AND JOB 2.4 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 the jobholder. 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.

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 the major 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 or received, 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 candidates2. Guiding new employees in what they are

specifically expected to do and3. Comparing the employee’s 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 personal characteristics 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 the job. Job specification tells what kind of a person to recruit and for what qualities that person should be tested.

JOB DESCRIPTION OF A BANK CLERK

The following is a brief job description of the duties and responsibilities that a bank clerk in the term / fixed deposit section has to perform:

Keep the accounts opening forms of all the different deposit schemes.

Keep the latest information on rate of interest, maturity values of all schemes.

Collect and keep numbered receipt books in use in personal custody and return to the officer at the end of the day.

Open the account/issue the deposit receipt as per the duly account opening form. Incorporate all details in ledger / register.

Calculation of interest provisions and cumulative interest provisions as per the procedure.


Payment of interest on various deposits as per the laid down procedures. Calculate interest properly to avoid excess payment.

Taking down the balances periodically, scheme wise along interest provisions and tallying it with the General Ledger Head.

Transfer of overdue deposits to separate heads and making interest provisions thereon as per procedure.

Intimation to customers regularly about maturity of deposit receipts.

In case of payment before maturity, obtain application, calculate interest, penalty wherever necessary. Getting it checked before preparing vouchers.

In case customer desires loan against deposit, marking

of lien on the deposit and on the ledger with particulars and obtain signature of the competent authority.

Calculation of TDS (Tax Deduction at Source) wherever applicable.

Obtaining form no: 15H / 15G from customers.

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.

DEFINITIONDEFINITIONWendell French defines job evaluation as “a process of determining 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?

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.


RECRUITMENTRECRUITMENT

The 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.

DEFINITIONDEFINITIONDeCenzo and Robbins describes recruitment as “the process of discovering 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.

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 RECRUITMENTThe various sources of recruitment may be broadly

classified 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 to shifting an employee to a higher position carrying higher status, responsibilities and pay. Promotion may be based on performance or seniority depending upon the organization’s promotional policies.

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 bulletin boards 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 of opportunities 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 within the 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 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 employee’s skills, educational background, work history, and other important factors is stored in the organization’s 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 that assists 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 new blood 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 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 fee for 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 and his 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 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 offering better 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 of telephone 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 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 unqualified applicants 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.


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.

Selection of employees is a managerial decision. It is the management, which fixes the criteria for selection.

DEFINITIONAccording 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. The objective 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:


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 staffs who are involved in this step are extremely

PRELIMINARY INTERVIEW

APPLICATION BLANK

SELECTION TEST

EMPLOYMENT INTERVIEW

MEDICAL EXAMINATIONS

FINAL SELECTION

REFERENCE CHECKS


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 prepared application 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 individual’s 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.

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 and personnel 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 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 candidate’s 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. 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 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 new employee 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 expects from 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.

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 have introduction 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.

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 and potential.

The manager volunteer’s information about the bank’s 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 enriching partnership” is given to the employee.

TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT

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.

IMPORTANCE OF TRAINING IMPORTANCE 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, good organizations 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.

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 their work. 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 for higher positions by developing the necessary skills and attitudes. It improves employee’s prospects for advancement and promotion within the organization. Training prepares the employee for opportunities that will come during his career.


TRAINING METHODSTRAINING METHODS

A variety of methods have been developed for the training of managers and senior executives in the organization. The different 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 trainee’s 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

MANAGEMENT DEVELOPMENT PROGRAMSOn-the-job Training

1) Coaching2) Job rotation and transfers3) Understudy assignments4) Committee assignment5) Project assignment6) Multiple assignment

Of-the-job Training

1) Lecture method2) Case studies3) Conferences4) University training5) In-basket method6) Wilderness training


another according 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 manager’s 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 higher management, 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 superior who 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 facing the 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 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 the board 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 greater two-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.

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 is presented 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. Usually the 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 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-day affair 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 on the job such as letters, reports, memoranda, notes and other related materials. The trainee has to respond and make decisions on these items. The trainee’s decisions are then evaluated and he is given feedback on the nature of actions he takes.

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 be discussed 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 frankness and 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 build leadership, teamwork skills.

In most wilderness programs, the learning’s takes place in a wilderness areas involving such activities as river rafting, mountain climbing or scaling obstacles. Group 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. TRAINING AT SBITRAINING AT SBI

State Bank of India is India’s 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 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 bank’s 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 top management 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 employee’s ability to work more efficiently and without mistakes. This ultimately benefits the employee as well as the institution.

The training programs may classified in to three main divisions

1. Core Program2. 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

The following is an example program designed for officers:DURATION 24 days – 4 weeks (88 sessions)TARGET GROUP Probationary/ Trainee OfficersELIGIBILITY Recently appointed / Promoted

probationary TraineeOfficers

OBJECTIVES To increase their awareness of the changing economic environment and the role of the banking sector in it.To enable them to understand State’s Bank’s original structure, functions, vision, mission, values, and HRD philosophyTo introduce them to Banks system and proceduresTo familiarize the trainees with computers

PROGRAM DESIGNSubject No. Of sessionsInauguration & formalities 1Human Resource Management 2Banking system & State Bank 4Banking Laws 8Deposits & Miscellaneous Business 12Bank’s System Accounts 18Computer Appreciation 22Customer Orientation 8Offices languages Act 1Interface with functions- Branch/ ZO’s/HO’s

2

Dummy Banking 4


Educational Tour 4Exit Point Test 1Valediction 1

TOTAL SESSIONS 88

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 the performance 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 in his 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.

Performance appraisal provides feedback to the management whether an employee’s 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 employee’s contribution to the organizations during a specified 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 working habits.

3. Performance appraisal aims to provide data to managers with which they may judge future job assignments and compensation.

MAJOR USES OF PERFORMANCE MAJOR USES OF PERFORMANCE APPRAISAL APPRAISAL

Some of the major uses of performance appraisal are:

o Personnel Training: Performance appraisal provides information about the employee’s 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 employee’s job performance.

It is suggested that “personnel development” and “salary administration” 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 is also suggested that the same person should not conduct the process of employee development and salary fixation.

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 performance appraisal 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. This


information can be used to determinate or dismiss employees.

In order to prevent lawsuits, organizations must maintain proper records and documents relating to employee’s 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.

o Feedback: Performance appraisal provides information of an employee’s 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 employee’s job performance improved after the training period.

MODERN METHODS OF PERFORMANCEMODERN METHODS OF PERFORMANCE AND APPRAISALAND APPRAISAL

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

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. The supervisor attempts to solve any problems that the subordinate faces and new goals are set. The supervisor’s 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. An assessment 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 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 are observed 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 anchored rating scales. These scales are a combination of critical incidents and rating scales.


The development of BARS involves the following steps: Step 1: The supervisors prepare a list of critical incident.

Step 2: The supervisors then group the critical incidents in to small clusters of performance dimensions such as job knowledge, leadership etc. Thus there are number of performance dimensions (usually 5 to 10), each having a number of critical incidents.

Step 3: In this step a group of experts are called. The experts are presented with the critical incidents prepared in step one. There is to reassign or classify the critical incidents in to the same performance dimensions.The critical incidents that are reassigned by the majority of experts in the same dimension as that by the supervisors (in step 2) are retained. While those critical incidents about which there are confusion about the dimension to which they belong to discarded.

Step 4: The experts then rate each of the “surviving” critical incidents on a scale (of 7 to 9 points) as to how well they represent performance on the given dimension. Those critical incidents for which there is high rater agreement are retained. Those incidents for which there is a low rater agreement are discarded.

Step 5: The final form of BARS consists of critical incidents that survived step 3 and step 4. These incidents serve as behavioral anchors for the performance dimension scales anchored by the critical incidents.

Human Assets accounting: This method is still in the early stages of development. It attempts to measure the monetary value of the human resources of the organization.


In this method, valuation is done in terms of costs and contributions of employees. Costs of human resources consist of expenditure on human resource planning, recruitment etc. Contribution of human resources is the money value of labor productivity or added by human resources. The difference between cost and contribution reflects the performance of employees.

TRANSFERSTRANSFERS

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 part of the firm.

DEFINITIONDEFINITION

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

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.

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 to give 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.


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 of the 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, promoter’s duties and responsibilities increase, and the higher ones goes in an organization the greater is the effect of the employee’s decision on the working of the organization.

Promotion is upward movement of an employee in the organization’s 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.

DEFINITIONSDEFINITIONS


According to Scott and Clothier, a promotion “is a transfer of an employee to a job which pays more money or one that carries 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


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 a combination of both

PROMOTION BASED ON SENIORITY

Seniority implies relative length of service in the organization. Seniority is described as “The principle that an employee’s relative length of service is an organization is a factor in determining his employment rights and job opportunities in the organization.”

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 on the 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 the knowledge, 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.

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 be eligible for promotion.

PROMOTIONAL POLICIES PROMOTIONAL POLICIES

Every organization should develop a sound policy regarding promotion of its employees. The promotion policy should formally state the organization’s broad objectives. Employees are likely to be frustrated and restless in the absence of sound promotion policy.

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.

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. In a 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 management’s 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.

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.

PERFORMANCE APPRAISAL FORM PERFORMANCE APPRAISAL FORM

The Annual Appraisal Report of this leading PSU consists of six parts:

Part 1 – Bio-data sheet


Part 2 – Business Dimensions (for officers in operations)

Part 3 – Performance Appraisal (for officers in administration)

Part 4- Additional Accomplishments / Outstanding Achievements

Part 5 – Managerial Dimensions

Part 6 – Potential review

ty bms hrm notes

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