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PERFORMANCE APPRAISALMEANING OF PERFORMANCE APPRAISAL
performance appraisal may be understood as the assessment of individual’s performance in a systematic
way, the performance being measured against factors such as job knowledge, quality and quantity
output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility,
health and the like. Assessment should be confined to past performance alone. Potentials of the
employee for future performance must also be assessed.
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally
including both the quantitative and qualitative aspect of job performance. Performances here refer to the
degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an
individual is fulfilling the job demands. Often the term is confused with effort, but performance is
always measured in terms of result and not efforts.
A formal definition of performance appraisal is “it is the systematic evaluation of the individual with
respect to his or her performance on the job and his or her potential for development.”
FEATURES OF PERFORMANCE APPRAISAL
Performance appraisal is the systematic description of an employee’s job relevant strengths and
weaknesses.
The basic purpose is to find out how well the employee is performing the job and establish a plan of
improvement.
Appraisals are arranged periodically according to a definite plan.
Performance appraisal is not job evaluation. It refers to how well someone is doing the assigned job. Job
evaluation determines how much a job is worth to the organization and there for, what range of pay
should be assigned to the job.
Performance appraisal is a continuous process in every large scale organization.
PROCESS OF PERFORMANCE APPRAISAL
Performance appraisal is planned, developed and implemented through a series of steps:
1) Establish Performance Standards.
Appraisal systems require performance standards, which serve as benchmarks against which
performance is measured. In order to be useful, standards should relate to the desired results of each job.
Appraisals must have a clear- cut criteria. Performance standards must be both to the appraiser and the
appraise. The performance standards of goals must be developed after a thorough analysis of the job.
Goals must be written down. They must be measurable within certain time and cost considerations.
2) Communicate the Standards.
Performance appraisal involves attract two parties; the appraiser who does the appraisal and the
appraise whose performance is being evaluated. Both are expected to do certain things. The appraiser
should prepare job descriptions clearly, help appraise set his goals and targets; analysis results
objectively; offer coaching and guidance to appraise whenever required and reward good results. The
appraiser should be very clear about what he is doing and why he is doing. For this purpose, the
performance standards must be communicated to appraise and their reactions are noted initially. These
standards must be revised or modified as and when required.
3) Measure Actual Performance.
After the performance standards are set and accepted, the next step is to measure actual performance.
This requires the use of dependable performance measures, the ratings used to evaluate performance.
Performance measures in order to be helpful must be easy to use, reliable and report on the critical
behaviors that determine performance. Generally, managers regarding how to measure actual
performance use four common sources of information: personal observation, statistical reports, oral
reports and written reports.
4) Compare Actual Performance with Standards and Discuss the Appraisal.
Actual performance may be better than expected and sometimes it may even go off the track. The
assessment of another person's contribution and ability is not an easy task. It has serious emotional
overtones as it affects the self-esteem of the appraise. Any appraisal asked on subjective criteria is likely
to be questioned by the appraisers and leave him quite dejected and unhappy when the appraisal turns
out to be negative.
5) Taking Corrective Action, if Necessary.
Corrective action is of two types: The one, which puts out the fires immediately and the other one,
which strikes at he root of the problems permanently. Immediate action sets things right and get things
back or track, whereas the basic corrective action gets to the source of deviations and seems to adjust
the difference permanently. Basic corrective step seek to find out how and why performance deviate.
METHODS OF PERFORMANCE APPRAISAL:
Methods of Performance Appraisal
A) Traditional Methods B) Modern Methods
Confidential report 1. Human resource accounting
Ranking 2. management by objective
Graphical rating scale 3. Assessment centre
Checklists 4. BARS( Behaviorally
Forced distribution anchored rating scale )
Critical incidents
Essay evaluation
Group appraisals
TRADITIONAL METHODS:
Confidential report method
It is mostly used in government organizations. It is a descriptive report generally prepared at the
end of the year, by the employee’s immediate superior. The report highlights the strengths, weaknesses,
major mistakes, merits, good work done etc. of the subordinate. The impression of the superior about
the superior is merely recorded here. It does not offer any feedback to appraise. It is a narrative method
of performance appraisal since the report is not made public and hence no freedom is available, the
subjective analysis of the superior is likely to be hotly contested.
Ranking method
This is relatively easy method of performance evaluation. In it, the ranking of an employee in a work
group is against that of another employee. The relative position of each employee is tested in terms of
his or her numerical rank, for example, when there are five employees (A,B,C,D,E) to be compared,
then A’s performance is compared with that of B’s and decision is arrived at as to whose is the better or
worst. Next, B is also compares with all others. Since A is already compared with B, this time B is to be
compared with only C, D, and E In this evaluation is asked to rate the employees from highest to lowest
on some overall criterion. It is easier to rank the best and the worst employee, it is very difficult to rank
the average employees.
Graphical rating scale
It is the oldest and the most commonly used method of performance in this, a printed form is used to
evaluate the performance of an employee. Four to twelve factors are selected, depending upon the
category to which the employee belongs. Some of these factors are quantity of out put, quality of out
put, initiative, integrity, dependability etc. these factors and their degrees are marked on a graph paper
provided in the form. The rater has merely to check on the scale where he thinks the employee belongs.
Checklists and weighted checklists
The checklist is a simple rating technique in which the supervisor is given a list of statement or world
and ask to check statement representing the characteristic and performance of each employee a checklist
represents a set of objective statement about the employee and his behavior. A more recent variation of
the checklist is weighted list. Under this the value of each question may be weighted more heavily than
others.
The following are sample questions in the checklist:
- Is the employee is really interested in the task assigned? Yes/ No
- Is he respected of his colleagues? Yes/ No
- Does he follow instructions properly? Yes/ No
- Does he give respect to his superiors? Yes/ No
- Does he make mistakes frequently? Yes/ No
A rating score from the checklist helps the manager in evaluation of the performance of the employee.
Forced distribution method It was developed to eliminate the bias and the preponderance of high
ratings that might occur in some organizations. Its primary purpose is the correct tendency of the rates
to give consistently high and low ratings to all employees. This method makes those of several sets of
pair phases, two of which are positive and two of them are negative and the rates is asked to indicate
which of the four phrase is the most or least descriptive of a particular employee. Actually the statement
items are grounded in such a way that the rater cannot which statement applies to the most effective
employee. The favorable qualities earn a plus credit and the unfavorable ones earn the severest. In this
the overall objectivity is increased in the employee’s performance because the rater does not know how
high or low he is evaluating the individual, as he has no access to the storing key.
Critical incident method
The manager prepares test of statements of every effective and ineffective behavior of an
employee. These critical incidents or events represent the outstanding poor behavior of the employees.
The manager prepares records of the critical incidents of the worker’s behavior. At the end of the rating
period, the recorded critical incidents are used in the evaluation of the workers’ performance.
Essay Appraisal
Under this method the rater is asked to express the strong as well as the weak points of the employee’s
behavior. This technique is normally used with a combination of the graphical rating scale because the
rater an elaborately present the scale by sustaining an explanation for his rating. In it, the rater considers
the following factors:
Job knowledge and potential of the employee.
Employees understanding about the company’s programmes, policies, objective, etc.
The employees general planning, organizing and controlling ability.
The employee’s relation with the co-workers and superiors.
The attitude and perceptions of the worker, in general.
Group appraisal
In this method an employee is appraised by a group of appraisers. This group consists of the immediate
supervisor of the employee, other supervisors who have close contact with employee’s work, manager
or head of department or consultant. The head of department or manager may be the chairman of the
group and the supervisor may act as the coordinate for the group activities. The immediate supervisor
enlighten other members about the job characteristics, demand, standards or performance etc. then the
group appraise the performance of the employee, compares the performance with the standards, finds
out the deviation, discusses the reasons, therefore suggests ways for improvement of performance,
prepares an action plan, studies the need for change in the job analysis and standards and recommends
changes, if necessary. This method eliminates “personal bias” to a large extent, as performance is
evaluated by multiple rates. However, it is very time consuming process.
B) Modern Methods:
Human resource accounting
HRA is a sophisticated way to measure in financial terms the effectiveness of the personal
manager activities and the use of people in an organization. It is process of accounting people as an
organization resource. It tries to place a value on the organizational human resources as assets and not
as expenses. This method shows the investment the organization makes in the people and how the value
of these people change over a time. The acquisition of employee is compared with the replacement cost
from time to time. In brief, in this method the employees’ performance is evaluated in terms of costs
and contributions of employees.
Management by objectives
It is the modern method of evaluating the performance of personnel. Managers have become
increasingly aware that the traditional performance evaluation systems are characterized by facing
goals. The concept of MBO is actually the outcome the pioneering work of Drucker, Mcgreger and
Odioine in management science. MBO can be described as the process whereby the superior and
subordinate manager of an organization jointly identify its common goals, each individual’s areas of
operations, responsibility in terms of results expected of him and use these measures as a guide for
operating the unit and assessing the contributions of each of its members. MBO thus represents more
than an evaluation process.
The MBO can be described in four steps:
The first step is to establish the goals each subordinate is to attain. The goals typically refer to the
desired outcome to be achieved. The goals can be then used to evaluate the employee performance
The second step involves setting of the performance standard fro the subordinates in a previously
arranged time period.
In the third step, the actual level of goal attainment is compared with the goals agreed upon. The
evaluator explores the reasons or the goals that were not met and the goals that were exceeded. This step
helps to determine the training needs. It also alerts the superior of the conditions that may affect but
over which the subordinate has no control.
The final step involves establishing new goals and, possibly, new strategies for goals that previously not
attained. At this point, subordinate and superior involvement in the goal setting may change.
Subordinates who successively reach the established goals may be allowed to participate more in the
goal setting process the next time. The process is repeated.
Assessment center
In this approach individuals from various departments are brought together to spend two or three
days working on an individual or a group assignment similar to the ones they would be handling when
promoted. Observers rank the performance of each and every participant in order to merit since
assessment centers are basically meant for evaluating the potential of candidates to be considered for
promotion, training on development, they offer an excellent means for conducting evaluation process in
an objective way. All assesses get an equal opportunity to show their talents and capabilities based on
merit.
Behaviorally anchored rating scale
This method is also known as behavioral expectation scale. This method represent he latest innovation
in the performance appraisal. It is the combination of the rating scale and critical incident techniques of
employee performance evaluation. The critical incidents serve as the anchor statement on a scale and
the rating form usually contains six to eight specifically defined performance dimensions.
360° PERFORMANCE APPRAISAL
The appraisal may be any person who has thorough knowledge about the job contents, contents to be
appraised, standards of contents and who observes the employee's by performing a job. The appraisal
should be capable of determining what is more important and what is relatively less important. He
should prepare reports and made judgments without bias. Typical appraisals are supervisors, peers.
Subordinates, employees themselves, user of service and consultants. Performance Appraisal by all
these parties is called 360° Performance Appraisal.
Supervisors
Supervisors include superiors of the employee, other superiors having knowledge about the work of the
employee and department head or manager. General practice is that immediate superior appraises the
performance, which in turn is reviewed by the departmental head/ managers. This is because superiors
are responsible free managing their subordinates and they have the opportunity to observe, direct and
control the subordinate continuously. Moreover, they are accountable for the successful performance of
their subordinates. Sometimes other supervisors, who have close contact with employee work also
appraise with a view to provide additional information.
Peers
Peer appraisal may be reliable of the workgroup is stable over a reasonably long period of time and
performs tasks that require interaction.
Subordinates
In developed countries, the concept of change superiors rated by subordinates in being used in most
organizations. Such a method can be useful provided the relationships between superiors and
subordinates art cordial. Subordinate's ratings in such cases can be quite useful in identifying competent
superiors.
Self-Appraisal
If individuals understand the objectives they are expected to achieve and the standards by which they
are to be evaluated, they are to a great extent in the best position to appraise their own performance.
Also, since employee development means self-development, employees who appraise their own
performance may become highly motivated.
Users of Services/Customers
The customers on users of services can, better judge employee performance in service organizations
relating to behaviors, promptness, speed in doing the job and accuracy. Example, students better judge a
teacher’s performance.
Consultants
Sometimes consultants may be engaged for appraisal when employees or employers do not trust the
supervisory appraisal and management does not trust the self-appraisal and the appraisal done by
subordinates. In such situation, the consultants are trained and they observe the employee at work for
sufficiently long periods for the purpose of appraisal.
When to appraise?
Informal appraisals are conducted whenever the supervisor or personnel manager feel it necessary.
However, systematic appraisals are conducted on a regular basis; say for example, every six month or
annually.
PURPOSES OF PERFORMANCE APPRAISAL
To create and maintain a satisfactory level of performance.
To contribute to the employee growth and development thought training, self and management
development programmes.
To help the superior to have a proper understanding about their subordinates.
To guide the job changes with help to continuous ranking.
To facilitate fair and equitable compensation based on performance.
To provide information for making decision regarding lay off, retrenchment etc.
REQUIREMENTS OF A GOOD APPRAISAL SYSTEM:
It must be easily understandable:
If the system is too much complex or to time consuming, it may be anchored to the ground by its own
dead weight of complicated forms which nobody but the experts understand.
It musty has support of all line people who administer it:
If the line people think that there role is not very important then they will not consider the system
seriously. Similarly, if the people find that the system is too theoretical, too ambitious, or that has been
foisted on them by the ivory-tower staff consultants who have no comprehension of the demand then
they will recent it.
The system should be sufficiently grounded in the requirement of the organization:
It should reflect the value system of the organization. In fact functioning as a definition of performance,
it should tell he employee what set of activities or what qualities are considered desirable by the
organization. As such it should have linkage with the job description.
The system should be both valid and reliable:
The validity of the ratings is the degree to which they are truly indicative of the intrinsic merit of the
employees. The reliability of the ratings is the consistency with which the ratings are made, either by
different sectors, one by one rater at different times. Both validity and reliability result from objectivity.
The appraisal system of many organizations lacks this objectivity and bunches all employees into one or
two top ranks without taking into account their merits. This raises outstanding performances but also
raises doubts about the validity of the system.
The system should have built-in incentive:
This means that the reward should follow satisfactory performance. Many authors however, advocate
against the direct linkage between the appraisal and rewards. In their opinion, such a connection
throttles downward communication of performance appraisal because superiors do not like being
questioned by disgruntled subordinates.
The system should be open and participative:
It should involve employees in goal-setting process. This helps in planning performance better.
The systems should focus more on the development and growth:
Of the employee than on generating data for administrative decision making related to promotions,
increments, etc. the system must help in identifying employee’s strengths and weaknesses and indicate
corrective actions. For example it may reveal that goals need to be modified on; there is need for
classification of duties or for additional training or job rotation or job enrichment
GREIVANCE 1) MEANING/ DEFINITION :
The concept ‘Grievance’ has been defined in several ways by different authorities some of the
definition are follows:
Beach defines a grievance as “any dissatisfaction or feeling of injustice in connection with one’s
employment situation that is brought to the notice of the management”, where as Flippo indicate the
grievance as “a type of discontent which must always be expressed A grievance is usually more formal
in character than a complaint. It can be valid or ridiculous, and must grow out of something connected
with company operations or policy. It must involve interpretation or application of the provision of the
labour contract.”
Jucius defines a grievance as “any discontent or dissatisfaction, whether exposed or not, whether
valid or not, arising out of anything connected with company which an employee thinks, believes or
even feels to be unfair, unjust or inequitable.”
A grievance is more than likely a violation of an employee's rights on the job, a right that is usually,
but not always defined by the contract. In seeing a grievance in this way, we can understand better that
the best place to look for a way to defend the member is in the language of the contract. So for all
practical purposes, every union officer must go back to the contract first when a member comes in with
a complaint or a problem. The contract provides us with the strongest ammunition in resolving the issue
for our member. Is the contract the only means to resolve member's grievances? Of course not. But it is
probably the strongest leg you have to stand on. Lastly, there are many grievances that fall into a large
category which we say are discipline-related. The union can challenge certain rules or their application.
We may argue that a member is being disciplined without "just cause" or he or she is suffering from
disparate treatment. The two expressions are simply an arbitrator's or lawyer's way of saying the
member is being disciplined unfairly.
So the best advice that can be offered in handling a member's problem is to check the contract
first. If there is any reasonable way of dealing with the issue as a contract violation, youought to use it.
You and your local union are only limited by the contract, the skills of the grievance representatives,
and the power of the local union.
NEED FOR A GRIEVANCE PROCEDURE
Grievance procedure is necessary for any organization due to the following reason:
Most grievances seriously disturb the employees. This may affect their moral, productivity and their
willingness to cooperate with the organization. If an explosive situation develops, this can be promptly
attended to if grievance handling procedure is already in existence.
It is not possible that all the complaints of the employees would be settled by first-time supervisors, for
these supervisor may not have had a proper training for the purpose, and they may lack authority.
Moreover, there may be personality conflicts and other cause as well.
It serves as a check on the arbitrary action of the management because supervisors know that employees
are likely to see to it that their protest dose reach the higher management.
It serves as an outlet for employees gripes, discontent and frustrations. It acts like a pressure value on a
steam boiler. The employees are entitled to legislative, executive and judicial protection and they get
this protection from the grievance redressal procedure, which also acts as a means of upward
communication.
2)CONSIDERS GOOD PRACTICE IN HANDLING DISCIPLINARY AND GRIEVANCE
ISSUES :
endorses the ACAS Code of Practice1 for handling disciplinary and grievance issues
summarizes the statutory procedures which came into force in October 2004
includes the CIPD viewpoint.
Summary
A summary of issues which can be addressed through the Basic Grievance Procedure include, but are
not limited to, the following: All allegations of discrimination; allegations of non-compliance with the
Personnel Rules; improvement of systems, practices or procedures; safety; health; working conditions;
materials or equipment; supervisory practices or procedures considered improper or unfair; disciplinary
actions such as suspensions of 40 hours or less, reprimands or memos of concern; or any other matters
subject to the authority of the ADOA Director and for which no other method of redress is provided or
prohibited in the Personnel Rules.
Restrictions
An employee may not submit a grievance challenging the following management rights, but may
submit a grievance concerning the manner of their administration, insofar as these personally affect the
employee: The agency's right to direct its employees; to hire, promote, transfer, assign, and retain
employees; and, to maintain efficiency of government operations, and to determine the methods, means,
and personnel by which these operations are to be conducted. An employee may submit a grievance
concerning a specific performance factor rating by utilizing the EPAS Grievance Procedure. An
employee may not submit a grievance concerning the receipt of a performance decrease, the non-receipt
of a performance increase or special performance award, the amount of any increase or decrease, or the
use of any job-related supplemental rating factors to determine the receipt or amount of an increase,
decrease, or special performance award. An employee may submit a grievance using the Basic
Grievance Procedure within 10 days of receipt of a planning EPAS or within 10 days of failing to
receive, after written request, a planning document.
Non-Applicable Matters
A summary of issues which cannot be addressed through either the Basic or the EPAS Grievance
Procedure, include, but are not limited to, the following: Retirement issues; life insurance or health
insurance issues; suspension for more than 40 working hours, demotion, or dismissal resulting from
disciplinary action; any examination, certification or appointment; any classification action; and any
reduction in force action and matters not subject to the Department of Administration control. Other
avenues exist to seek redress or remedy involving these actions.
Amendments
Once a grievance is referred to any step beyond the immediate supervisor, it may not be amended. If
additional documentation is submitted by the grievant after the initiation of the grievance, the reviewing
official may remand the grievance to the appropriate previous level for reconsideration. It is the
employee's responsibility to provide documentation to support the allegations raised in the grievance.
Confidentiality and Use of Official Authority
The preparation, submittal, review and response to a grievance are confidential. Correspondence
regarding a grievance should be handled in a confidential manner, and envelopes containing grievance
material should be clearly labeled "confidential." No reference to the complaint shall be included in the
employee's official personnel file.
Copies of written responses sent at each step of the procedure are limited to respondents at the
preceding steps, the agency head or the agency head's designee unless it is necessary to notify additional
personnel because the response requires another individual to take some action.
No person shall directly or indirectly use any official authority or influence in any manner to discourage
the use of this procedure. Any person found guilty may be subject to penalty under ADOA Personnel
Rule R2-5-501.
Representation
At any step of the grievance procedure after the mandatory pre-grievance oral discussion (see
below), grievant may select one representative to provide advice and/or speak for the grievant at any
meetings determined necessary by management in the course of the grievance process. An ADOA
employee who serves as a representative is required to request and obtain prior approval for annual or
compensatory leave for any time devoted as a representative during regular working hours. If a
representative is chosen, the representative shall be identified on the grievance form
Group Grievance
Should a group of employees file a grievance, all employees of the group are required to sign
the grievance and to clearly designate, on the grievance form, one member who will act as the group's
contact person. The contact person will act as a speaker for the group in any meetings determined
necessary by management.
Preparation Time
During the entire formal grievance process (after the oral discussion at Step I), employees are
allowed up to four hours with pay to prepare the grievance and/or confer with their official
representative on the grievance. Employees cannot use state equipment for this process. Employees
must request and obtain prior supervisory approval for time off, which will be subject to the operational
needs of the unit. The time an employee devotes to attending any meetings scheduled by management
to discuss the grievance is considered work time and is not included in the four-hour limitation specified
above.
Extensions
The ADOA Personnel Rules require that the agency head respond to a grievant not later than 40
working days after receipt of the grievance at the first step. Within the 40 working days requirement,
the time at any step may be extended by the agency head with concurrence of the grievant. If at any
step the response is not made within the prescribed time and no extension has been agreed upon, the
employee may submit to the next step.
Mandatory Oral Discussion
In accordance with Personnel Rule R2-5-702.A.1, the employee is REQUIRED to have an oral
discussion with the immediate supervisor prior to initiating a formal grievance. The employee must
clearly state to the supervisor the employee's intentions of filing a formal grievance, the issues involved,
and the requested resolution. The purpose of the meeting is for both parties to explore the issues and
the requested resolution. If the employee fails to take this step, the grievance WILL NOT be accepted
through the formal grievance procedure. It is the employee's responsibility to remember that the Step I
grievance must be submitted within 10 working days after the occurrence of the action being grieved,
and that these 10 days are not extended by the date on which the oral discussion takes place.
The employee may select a representative at any step after the oral discussion with the supervisor.
Procedures
When an employee wants to submit a basic grievance, the employee must: Use the appropriate form;
state the problem and outline all of the specific facts, circumstances and issues involved; provide all the
appropriate documentation to support the allegations; state the specific resolution which is sought; of a
Personnel Rule violation is alleged, the specific rule alleged to have been violated must be stated as well
as an explanation of how the rule was violated; and, the employee must sign the grievance at each step
and state why the response at the previous level was not satisfactory.
The employee must also meet the mandatory oral discussion requirement prior to submitting the
complaint and adhere to the required time limitation for submitting a grievance.
Step I
The Step I responding authority is the employee's immediate supervisor.
The time limit for submitting the grievance is 10 working days from the date of the action being
grieved. If a suspension is being grieved, the date of the action is considered to be the first day of the
suspension. The date the action occurred is not counted when determining
3)WHY ARE DISCIPLINARY AND GRIEVANCE PROCEDURES NECESSARY?
Disciplinary and grievance procedures provide a clear and transparent framework to deal with
difficulties which may arise as part of their working relationship from either the employer's or
employee's perspective.
They are necessary to ensure that everybody is treated in the same way in similar circumstances, to
ensure issues are dealt with fairly and reasonably and that they are compliant with current legislation.
Disciplinary procedures are needed:
So employees know what is expected of them in terms of standards of performance or conduct (and the
likely consequences of continued failure to meet these standards).
To identify obstacles to individuals achieving the required standards (e.g. training needs, lack of clarity
of job requirements, additional support needed) and take appropriate action.
As an opportunity to agree suitable goals and timescales for improvement in an individual's
performance or conduct.
As a point of reference for an employment tribunal should someone make a complaint about the way
they have been dismissed
Grievance procedures are needed:
To provide individuals with a course of action should they have a complaint (which they are unable
to resolve through regular communication with their line manager).
To provide points of contact and timescales to resolve issues of concern.
The legal position
Most of the provisions governing discipline and grievances at work are to be found in the
Employment Act 2002 and the detailed regulations made to implement the provisions of that Act
namely the Employment Act 2002 (Dispute Resolution) Regulations 2004 (SI2004/752).
Numerous other pieces of legislation cross refer to discipline and grievance issues. Some important
examples include the:
Employment Rights Act 1996 as amended
Employment Rights Dispute Resolution Act 1998
Employment Relations Act 1999.
The statutory disciplinary, dismissal and grievance procedures
From 1 October 2004, the Employment Act 2002 made it a legal requirement for all organizations to
follow minimum disciplinary, dismissal and grievance procedures in certain circumstances. These
statutory procedures amount to a minimum standard that must be followed by all employers and
employees.
The Main Features Of The Procedures Are:
Three step statutory disciplinary, dismissal and grievance procedures which must be followed in
most cases
failure to follow the statutory procedures by the employer prior to dismissal will render that dismissal
automatically unfair
employers will pay a potential increase in compensation of between 10-50% if the procedures are not
followed by the employer
an employee may be prevented from presenting some types of claim in the employment tribunal if they
have not followed the grievance procedure first
the procedures are non-contractual until further notification by the Department of Trade and Industry
unless an organization chooses to incorporate the statutory minimum into their own contractual
procedures.
There are two sets of procedures: standard, and modified. It is envisaged that the standard procedure
will be used in all but the most exceptional circumstances. These procedures apply in a wide range of
circumstances which are not limited to issues relating to the capability or conduct of the employee but,
for example, to dismissals which occur on the expiry of a fixed-term contract and in a smaller scale
redundancies.
There are some exemptions to the statutory procedures, for example if one party reasonably believes
there is a significant threat, harassment or it is not practical to go through the procedures for reasons
beyond their control, or if there are issues of national security.
The ACAS Code of Practice Disciplinary and Grievance Procedures1 provides detailed guidance for
employers. CIPD endorses this Code.
CIPD members can find out more on the legal aspects of this topic from our FAQ on in the Employment
Law at Work area of our website.
Top of Form
Grievance policy and practice
It is essential that grievances from employees are treated in the same fair manner. Failure to address
grievances leaves employees with ‘residual anger’ and can lead to general unrest and disputes in the
workplace.
Employees must know to whom they can turn in the event of a grievance and the support, such as
counseling or sources of advice, that is available to them. All line and senior managers must be familiar
with their organization’s grievance procedure.
There are a number of additional factors to bear in mind when dealing with grievances concerning
harassment. For further details see our fact sheet on
Handling grievances informally
Individuals should be encouraged to discuss ordinary, day-to-day issues informally with their line
manager. This helps concerns to be heard and responded to as soon as possible.
Where this has been unsuccessful, or circumstances make this route inappropriate for the individual,
then matters should raised formally through the grievance procedure.
Handling grievances formally
Employees should also be aware of the formal route open to them, including:
the three stages of the statutory procedure and any further elements of the organization’s additional
procedures
with whom to raise the complaint and appropriate sources of support
timescales within which the organization will seek to deal with the complaint
details of the stages of the grievance procedure e.g. how a complaint may be raised with the next level
of management if a satisfactory resolution is not reached.An employee should be given the right to be
accompanied to grievance hearings by a colleague or trade union representative as explained above.
As in disciplinary matters, record keeping is important
4)GRIEVANCE PROCEDURES: THE STANDARD THREE-STEP PROCEDURE
Your employer’s grievance procedure may have more than three steps, but it must include the
following.
1. Written statement
You must set out your grievance in writing (often called a ‘step one letter’). Your employer’s
grievance procedure should say who to send your letter to. If that’s the person causing the problem, or if
they’ve ignored previous complaints, send it to the HR department or to the person’s boss.
2. Meeting:
Your grievance should be looked into in a fair and unbiased way. Your employer should invite you
to a meeting (sometimes called a hearing) to discuss the problem, and you should attend if you can. If
there is someone else involved, they might also be there (but you should tell your employer if you are
uncomfortable with this).The meeting should be at a convenient time for you and anyone else involved.
If you think you’ve not had enough time to prepare, ask for more time. If your employer doesn’t agree
(and they don’t have to), you should go to the hearing, but make sure that your lack of preparation time
is noted. Gather your thoughts before the meeting. Don’t be afraid to write down what it is you want to
say. There is nothing wrong with reading this out at the meeting. It is up to your employer what format
the meeting takes but they will normally go through the issues that have been raised and give you the
opportunity to comment. The main purpose of the meeting should be to try to establish the facts and
find a way to resolve the problem. The Advisory, Conciliation and Arbitration Service (Aces) have a
code of practice which sets out how your employer should carry out a grievance procedure. If you ask
your employer beforehand, you have a legal right to take a ‘companion’ (who is a colleague or trade
union representative) to the meeting with you. If no colleague is willing to accompany you, and you’re
not a union member, ask if you can bring a family member or a Citizen’s Advice Bureau worker (but
your employer does not have to agree to this). The companion can present and/or sum up your case, talk
on your behalf and confer with you during the hearing. They’re protected from unfair dismissal or other
mistreatment for supporting you. The meeting must be at a convenient time for your companion. You
can ask for a postponement of up to five days if necessary to get your chosen companion there. You
should be given notes of the meeting, and copies of any information given by other people. Unless they
need to investigate further, your employer should tell you reasonably quickly what’s been decided, and
about your right to appeal if you’re not satisfied. You might be told of the outcome verbally at first but
it will usually be confirmed in writing.
3. Appeal meeting:
If you’re not satisfied with the decision, or you think the procedure followed was seriously flawed,
you have the right to an appeal. This is usually heard by a higher level of management. If that isn’t
possible, your employer could ask an Aces mediator or other independent person to hear it. The appeal
hearing is similar to the original meeting, and you have a right to a companion, as before. Your
employer should give you enough time to appeal. If they don’t, make your appeal anyway, and say that
you’ll provide more information later. If you are considering taking your issue to an Employment
Tribunal you may want to appeal even if it seems pointless, because a tribunal award could be reduced
if you don’t. If you can’t sort out the dispute, you can get help through mediation, conciliation or
arbitration, if your employer agrees to it.
DISCIPLINE
1)INTRODUCTION:
Discipline is required for both the organization and the individual. In the organization it is needed to
regulate the behavior of people, maintain peace and channel their efforts towards organizational goal.
Sad to sate, most people do not exercise self discipline and this fact makes external control necessary
for brining order within an organization.
CONCEPT
Discipline is not a glamorous term. It is viewed with fear and suspicion in organization. The multiple
explanation advanced by different expert in the filed have only added to the prevailing confusion.
NEGAIVE DISCIPLINE
Traditionally, discipline is interpreted as a sort of check or restraint on the freedom of person.
Discipline is used to the act of imposing penalties for wrong behavior. If employees fail to observe
rules, they are punished. “Discipline is the force that prompts an individual or a group to observe the
rules, regulations and procedures which are deemed to be necessary to the attainment of an objective,”
POSITIVE DISCIPLINE
Employees comply with rules not out fear of punishment but out of an inherent desire to
cooperate and achieve goals. Where the organizational climate is market by two-way communication,
clear goals, effective leadership, adequate compensation employees need not be discipline in the
traditional way. Positive discipline, according to Spriegel enables an employee, “to have a greater
freedom in that he enjoys a greater degree of self-expression in striving to achieve the objective, which
he identifies as his own.”
2)DIFFEREANCE BETWEEN POSITIVE & NEGATIVE DISCIPLINE :
Point Negative Discipline Positive Discipline
Concept It is adherence to established
norms and regulation, out of
fear of punishment.
It is the creation of a
conductive climate in an
organization so that employees
willingly confirm to the
established rules
Conflict Employees do not perceptive
the corporate goals as there
own.
There is no conflict between
individual and organizational
goals.
Supervisio
n
Require intense supervisory
control to prevent employees
from going off the track.
Employees exercise self-
control to meet organizational
object ivies.
3)SELF DISCIPLINE AND CONTROL:
Behavioral scientist view discipline as a self- control to meet organizational objectives. Megginson
clarified the term thus. “By self- discipline he mans the training that correct, moulds and strengthens. It
refers to one’s efforts at self control to certain needs and demands. This form of discipline is raised on
to psychological principles. First, punishment seldom produce the desired result. Often, it produce
undesirable result. Second, a self- respecting person tends to be a better worker than one who is not.”
4)PROGRESSIVE DISCIPLINE:
The concept o progressive discipline states that penalties must be appropriate to the violation. If
inappropriate behaviour is minor in nature and has not previously occurred an oral may be sufficient. If
the violation requires a written warning, it must be done according to a procedure. After written
warnings, if the conduct of the employees is still not along desired lines, serious punitive steps could be
initiated. In case of major violations such has hitting a supervisor may justify the termination of an
employee immdiately. In order to assist a manager to recognize the proper level of disciplinary action,
some firms have formalized the procedure.
5)THE RED HOT STOVE RULE:
Without the continual support of the subordinate, no manager can get things done. But disciplinary
action against a delinquent employee is painful and generates resentment on his part.
According to the Red Hot Stove rule disciplinary action should have following consequences:
A} Burns immediately: If disciplinary action is to be taken, it must occur immediately so the
individual will understand the reason for it. With the passage of time, people have tendency to convince
themselves that they are not fault.
B} provides warning: It is very important to provide advance warning that punishment will follow
unacceptable behaviour. As you move closer to hot stove you are warned by its heat that will be burned.
C} Burns impersonally: Disciplinary action should be impersonal. There are no favorites when this
approach is followed.
6)JUSTICAL APPROCH TO DISCIPLINE:
The Industrial Employment Act was passed in 1946 with a view to improve the industrial relation
climate. The Act requires that all establishment must define the service rules and prepare standing order.
The term Standing order refers to the rules and regulation which governs the condition of employment
of workers. They indicate duties and responsibility on the part of both the employer and the employees.
The standing order contains rules relating to classification of employees, working hours, holidays, shift
working, attendance, leave, suspension, stoppage of work, redreassal of these terms and condition may
lead to misconduct or indciplpine.
7)DISCIPLINARY ACTION:
Though there is no rigid and specific procedure for taking disciplinary action, the disciplinary
procedure followed in Indian industries usually consist of the following steps:
a. Issuing the letter of charge: When a employee commits an act of misconduct that required disciplinary
action, the employee concerned should be issue a charge sheet. Charges of misconduct or indiscipline
should be clearly and precisely stated in the charge sheet.
b. Consideration of explanation: On getting the answer for the letter of charge served, the explanation
furnished be consider and if it is a satisfactory, no disciplinary action need be taken. On the contrary
when the management is not satisfied with the employees explanation there is a need for serving a
show-cause notice.
c. Show-cause notice: Show-cause notice is issued by the manager when he believes that there is a
sufficient prima facie evidence of employees misconduct. Enquiry should also initiated by first serving
him a notice of enquiry indicating clearly the name of enquiring officer, time, date and place of enquiry
etc.
d. Holding of a full fledge enquiry: These must be in conformity with the principle of natural justice, that
is the employee concerned must be given an opportunity, of being heard. When the process of enquiry is
over an findings of the same are record, the enquiry officer should suggest the nature of disciplinary
action.
8)DISCIPLINARY POLICY AND PRACTICE:-
Using the disciplinary process
There are two main areas where the disciplinary system is used: capability/performance and conduct.
Capability/performance
It is inevitable that at some stage all employers will encounter difficulties with the performance of
their employees in the workplace (these can stem from difficulties on the part of the organization such
as insufficient training and support, or a lack of leadership or inappropriate systems of work, as well as
the individual who is struggling to fulfill their responsibilities). It is good practice and also more
efficient that such issues are addressed informally, as and when they arise, by managers via discussions
which clarify 'what good performance looks like', goal setting, support and timely positive feedback
where appropriate. Only when these options have been exhausted and where there is no alternative
should managers should enter a more formal disciplinary procedure.
Situations where an individual is unable to do their job because of ill-health also fall into this category.
In these instances an employee should be dealt with sympathetically and offered support. However,
unacceptable levels of absence could still result in the employer making use of warnings.
Conduct
Employee misconduct could range from continued lateness, failure to follow a reasonable
management instruction, abuse of the organization’s computer system or Internet access, bullying
behaviour or creating a hostile work environment, through to theft, fighting and committing criminal
offences. The more grave offences may constitute gross misconduct. In all cases, even gross
misconduct, an employer should attempt to follow the statutory procedures.
Stages of the process
If disciplinary action is to be taken, it should always have three main stages:
1] Letter
2] Meeting
3] Appeal.
There must always be a full and fair investigation to determine the facts and to decide if further action is
necessary.
Record-keeping
All records should be kept meticulously, as this will be vital should a case be perused at an
employment tribunal. Since the burden of proof is on the employer to show that the dismissal is not
unfair or unreasonable, keeping records is vital. Type of records that should be kept by employers is
minutes of meetings, attendance, notes of telephone calls, copies of correspondence etc.
Handing disciplinary interviews
All line managers should be trained and supported so that they are able to carry out disciplinary
meetings with their team. The HR department should be able to assist them by providing a source of
independent advice on preparing for and conducting the interview, as well as sharing knowledge about
similar cases in the organization and relevant legislation.
The key points to consider are:
Ensure you have investigated all the facts in advance (including consulting the individual's personal file
for relevant information) and plan how you will approach the meeting.
Make sure the employee knows from the letter inviting them to the meeting why they have been asked
to attend and that they have a right to have a companion present.
Make sure the individual has reasonable notice, ideally more than 48 hours; so that they have a chance
to arrange an appropriate representative if they wish.
Make sure another member of management can be there to take detailed notes and help.
Conduct the interview.
Never pre-judge the outcome of the interview before hearing the employee's perspective.
Start the interview by stating the complaint to the employee and giving appropriate statements from
people involved.
Give the employee ample opportunity to put forward their side of the story and call any supporting
witnesses.
You can also call witnesses, but they can only be in the room for the relevant part of the interview - not
the duration.
Make use of adjournments: always take a break to consider and obtain any extra information you need
before reaching your decision. You can also use if things become heated or people are upset during the
interview.
Deliver the decision (and give reasons, taking into account any mitigating circumstances), confirm
review periods and ensure you give details of how to appeal.
Confirm the decision in writing.
It is important that everyone involved in disciplinary action understand the importance of following the
correct procedure, as even if the case against an employee seems proven, they can still be deemed to
have been treated unfairly if the correct procedures are not followed.
An individual is entitled to be accompanied by a work colleague or trade union official at formal
disciplinary and grievance interviews, and to select a companion of their choice. It would be good
practice for an employer also to offer this at any purely investigatory meeting.
No action
After the meeting, the employer may decide that no action is necessary. For example, if an employee
was unclear about what was expected from them and they agree to try to resolve the issue via additional
support or counseling.
Warnings
Alternatively, the employer may decide to give the employee a warning. An organization’s policy
should outline exactly what warnings will be given, but the following are likely:
Recorded oral warning
First written warning
Final written warning.
Clearly these stages represent an increase in seriousness. With the exception of extreme examples of
misconduct, it would be inappropriate to 'skip stages' in the process. Ultimately, failure to reach the
organization’s standards may result in dismissal.
Any warning should also specify a review period during which the individual receives appropriate
support and their performance can be monitored.
Disciplinary warnings should normally have a specified 'life' after which they are disregarded when
considering any subsequent warnings. Typical timescales for the types of warning are:
recorded oral warning - 6 months
first written warning - 1 year
final written warning - 2 years.
Where misconduct has been very serious, it may be appropriate for the warning to continue to be
regarded indefinitely.
RECURITMENT
Recruitment means to estimate the available vacancies and to make suitable arrangements for
their selection and appointment. Recruitment refers to “Discovering potential applicants for actual or
anticipated organizational vacancies. Recruitment is a process “To discover the source of manpower to
meet the requirements of staffing, to employ effective measures for attracting potential manpower in
adequate number”. Recruitment is the process of identifying the sources for prospective candidates and
to stimulate them to apply for the job. It’s linking activity bringing together those with jobs and those
seeking jobs. It locates the source of manpower to meet the requirements and job specifications. In
recruitment process available vacancies are given wide publicity and suitable candidates are encouraged
to submit application so as to have a pool of eligible candidates for scientific selection.
In recruitment, information is collected from interested candidates. For these different sources of
recruitment such as newspaper advertisement, employment exchange, internal promotions, etc. are used.
In the recruitment, a pool of eligible and interested candidates is created for the selection of most
suitable candidate. Recruitment represents the first contact that a company makes with potential
employees.
Recruitment is a positive function in which publicity is given to the jobs available in the organization
and interested candidates (qualified job applicants) are encouraged to submit applications for the
purpose of selection.
DEFINITION OF RECRUITMENTAccording to Edwin Flippo, “Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organization.
OBJECTIVES OF RECRUITMENTThe objectives of recruitment are as follows:
(i) To attract people with multi-dimensional skills and experiences that suit the present and future
organizational strategies,
(ii) To induct outsider with a new perspective to lead the company,
(iii) To infuse fresh blood at all levels of the organization,
(iv) To develop an organizational culture that attracts competent people to the company,
(v) To search or head hunt/head pouch people whose skills fit the company’s values,
(vi) To search for talents globally and not just within the company.
PURPOSE OF RECRUITMENT
Recruitment has three major purposes:
1) to increase the pool of job applicants with minimum cost.
2) To meet the organization’s legal and social obligations regarding the demographic composition of its
workforce.
3) To help increase the success rte of the selection process by reducing the percentage of applicants who
are either poorly qualified or have the wrong skills.
NEED FOR RECRUITMENT
The need for recruitment may be due to the following reasons/situations:
(a) Vacancies due to promotions, transfers, retirement, termination, permanent disability, death and labour
turnover.
(b) Creation of new vacancies due to growth, expansion and diversification of business activities of an
enterprise. In addition, new vacancies are possible due to job respecification.
SOURCES OF RECRUITMENT
The sources of recruitment may be grouped into:
Internal sources
External sources
INTERNAL SOURCES: As the term implies internal source of recruitment is for those who are
currently members or the organization. Whenever any vacancy arises, somebody from within the
organization may be looked into, following are the internal sources of recruitment.
1) Promotions: - In order to motivate the existing employees, management follows the policy of internal
promotions. Promotion means shifting of an employee to a higher position carrying higher
responsibilities, facilities, status and salaries. Various positions in the organization are usually filled up
by promotions of existing employees on the basis of merit or seniority or a combination of both.
2) Transfers: - Transfer refers to a change in job assignment. It may involve a promotion or demotion, or
no change in terms of responsibility or status. A transfer may be either temporary or permanent,
depending the necessity of filling jobs. E.g. transfer from head office to branch office.
3) Retirements: - At times, management may not find suitable candidate in place of the one who had
retired, after meritorious service. Under this circumstances management may decide to call retired
manager with new extension.
4) Recalls: - When management faces a problem, which can be solved only by a manager who has
proceeded on long leave, it may be decided to recall that person. After the problem is solved, his leave
may be extended.
5) Former employees: - Individuals who left for some other job, might be willing to come back for higher
wages incentives. An advantage with these sources is that the performance of the person/employee is
already known.
EXTERNAL SOURCES
As the term implies the external source of recruitment is of potential workers who are not currently
member of the organization. It usually includes new entrants to the labour force the unemployed and
people employed in the other organization seeking the change. Company managements have to use
eternal sources for the recruitment of supervisory staff and managers as and when necessary. This may
be with a view to introducing the ‘new blood’ in the organization. External recruitment is one way of
bringing into the organization that has new skills or abilities and different way of approaching job task.
Following are the most common external source of managerial recruitment.
1) Newspaper Advertisement:-Newspaper advertisements are overwhelmingly popular source of
recruitment. A message containing general information about the job and the organization is placed in
various newspapers. Newspaper advertising typically generates a large applicant flow. Though costly, it
provides wide choice as it attracts a large number of suitable candidates from all over the country. The
best example for newspaper advertisement is the Times of India’s Asscent supplement which comes on
every Wednesday and contains both domestic as well as international jobs.
2) Campus Recruitment: - College Campuses are another very popular recruitment source. The growth
of Management institutes, IIts and Regional Engineering Colleges has provided a popular source of
recruitment. Private sector is able to attract many aspirants. It is an excellent source of recruiting
management trainees. The promising students get job security immediately after securing degrees due
to such campus interviews/recruitment.
3) Recruitment through internet: - The Internet has quickly become a very popular source of
employment advertising. This source is quickly growing in popularity. Currently employers can post
their openings to any of several newsgroups for free. Most employment advertisement firms can also
post the jobs on the Internet; however, they charge a fee. A large and fast growing proportion of
employers use the internet as a recruitment tool. More and more organizations are placing information
about open positions on the World Wide web. There are many web sites through which recruitment
takes place. Some of the examples are www.naukri.com, www.monster.com, etc.
4) Job Fairs: - Job fairs are very effective. A job fair is an event sponsored by a "job fair" company who
charges a fee to participating employers. The "job fair" company will typically advertise in local media
to attract qualified applicants. Hiring managers can meet multiple candidates and conduct on-the-spot
interviews. Because the applicants may be interviewing with multiple employers, it is imperative to
respond quickly with invitations for in-plant interviews of qualified candidates. If a job fair results in
just one hire it is usually cost effective.
5) Employment Agencies: - The firm contacts an organization whose main purpose is locate job seekers.
The company provides the agency with information about the job, which the agency then passes along
to its clients. Clients may be either employed or unemployed. Agencies can either be public or private.
Fees may be charged to either or both the client seeking a job and the company seeking applicants.
6) Walk-ins, Write-ins and Talk ins:- The most economical approach for recruitment of candidates is
direct applications. The job seekers submit applications or resumes directly to the employer. The
advertisement mentions date, day and timing during which the applicant can ‘walk in’ for an interview.
Write-ins are those who send written inquiries. These applicants a raked to complete application forms
for further processing. Talk-ins is now becoming popular and the applicants are required to meet the
employer for detailed talks. The applicant is not required to submit any applications.
ADVANTAGES OF INTERNAL RECRUITMENT
1) Internal recruitment is economical.
2) The present employees already know the company well and are likely to develop a loyalty for the same.
3) It tends to encourage existing employees to put in greater efforts and to acquire additional qualification.
This means there is motivation to employee to develop and reach to higher positions.
4) It provides security and continuity of employment.
5) Internal recruitment helps to raise the morale of employees and develop cordial relations at the
managerial levels.
6) It reduces labour turnover as capable employees get promotion within the organizations.
7) Internal recruitment is a quick and more reliable method.
8) People recruited from within the organization do not need induction or training.
DISADVANTAGES OF INTERNAL RECURITMENT
1) Internal promotions create a feeling of discontent among those who are not promoted.
2) It prevents the entry of young blood in the organization.
3) Promotion to certain key post may not be possible due to non-availability of competent persons.
4) The organization will not be able to attract capable persons from outside if internal sources are used
extensively.
5) It may encourage favoritism and nepotism.
6) Promotions by seniority may not be always beneficial to the organization.
In brief, internal methods of recruitment should be used to extent possible but too much dependence on
internal methods is undesirable and may prove costly to the organization in the long run.
ADVANTAGES OF EXTERNAL SOURCE OF RECRUITMENT
1) Entry of young blood in the organization is possible.
2) Wide scope is available for selection. This facilitates selection of people with rich and varied
experience.
3) Selection can be made in an impartial manner as large number of qualified and interested candidates are
available.
4) Scope for heartburn and jealousy can be avoided by recruiting from outside.
5) The management can fulfill reservation requirements in favour of the disadvantaged section of he
society.
DISADVANTAGES OF EXTERNAL SOURCE OF RECRUITMENT
1) External recruitment leads to labour turnover particularly of skilled, experienced and ambitious
employees.
2) The relations between employer and employee deteriorate leading to industrial disputes and strikes.
3) The present employees may lose their sense of security. Their loyalty to the organization may be
adversely affected.
4) Employees feel frustrated due to external recruitment and their morale is adversely affected.
SELECTION
MEANING AND DEFINITION OF SELECTION
Selection is one of the most important of all functions in the management of personnel.
Selection is more closely related to recruitment because both are concerned with processing individuals
to place them in a job. Selection is next to recruitment. After identifying the sources of human
resources, searching for prospective employees and stimulating them to apply for jobs in an
organization, the management has to perform the function of selecting the right employees at the right
time. “Right man at the right job” is the basic principle in selection. Selection is the process of
collecting and evaluating information about an individual in order to extend an offer of employment. It
is the process of logically choosing individuals who posses the necessary skills, abilities and personality
to successfully fill specific jobs in the organization.
Selection means a process by which the qualified personnel can be choosen from the applicants who
have offered their services to the organization for employment. Thus selection process is negative
function because it attempt to eliminate applicants, leaving the best to be selected. In the words of Dale
Yodev, “Selection is the process in which candidates for employment are divided into two classes –
those who are to be offered employment and those who are not”. In short, selection is the process of
choosing a person suitable for the job out of several persons.
The objective of the selection decision is to chose the individual who can most successfully perform
the job from the pool of qualified candidates. The selection procedures are the system of functions and
devices adopted in a given company to ascertain whether the candidate’s specification is matched with
the job specification and requirements or not. The selection procedures cannot be effective until and
unless:
1) Requirements of the job to be filled, have been clearly specified (job analysis, etc)
2) Employee specifications (physical, mental, social, and behavioral, etc) have been clearly specified.
3) Candidates for screening have been attracted.
Thus, the development of job analyses, human resource planning and recruitment are necessary
prerequisites to the selection process. The breakdown in any of these processes can make even the best
selection system ineffective.
IMPORTANCE OF SELECTION
The importance of selection may be judged from the following facts:-
1) Procurement of Qualified and Skilled Workers: - Scientific selection facilitates the procurement of
well qualified and skilled workers in the organization. It is in the interest of the organization in order to
maintain the supremacy over the other competitive firms. Selection of skilled personnel reduces the
labour cost and increases the production. Selection of skilled personnel also facilitates the expansion in
the size of the business.
2) Reduce Cost of Training and Development:- Proper selection of candidates reduces the cost of
training because qualified personnel have better grasping power. They can understand the technique of
work better and in less time. Further, the organization can develop different training programmes for
different persons on the basis of their individual differences, thus reducing the time and cost of training
considerably.
3) Absence of Personnel Problems: - Proper selection of personnel reduces personnel problems in the
organization. Many problems like labour turnover, absenteeism and monotony shall not be experienced
in their severity in the organization. Labour relation will be better because workers will be fully
satisfied by the work. Skilled workers help the management to expand the business and to earn more
profits and in turn management compensates, the workers with high wages, benefits etc.
SELECTION PROCEDURE
Selection procedure employs several methods of collecting information about the candidate’s
qualification, experience, physical and mental ability, nature and behaviour, knowledge, aptitude and
the like for judging whether a given applicant is or is not suitable for the job. Therefore, the selection
procedure is not a single act but is essentially a series of methods or stages by which different types of
information can be secured through various selection techniques. At each step, facts may come to light
which are useful for comparison with the job requirement and employee specifications.
Selection procedure is lengthy and time consuming particularly in the case of supervisory post.
Following are the steps/ procedures of selection:
1) Job Analysis: - Job analysis is the basis for selecting the right candidate. Every organization should
finalize the job analysis, job description, job specification and employee specification before proceeding
to the next step of selection.
2) Application Form: - Application Form is also known as application blank. The technique of
application blank is traditional and widely accepted for securing information from the prospective
candidates. Where application forms are use, the data become a part of the employee’s record. The
information is generally required on the following items in the application forms: Personal background
information, Educational information, Work experiences, salary, personal details, expected salary and
allowances etc.
3) Preliminary Interview: - Preliminary or initial interview is often held in case of “at the gate”
candidate. This interview usually of short duration and is aimed at obtaining certain basic information
with a view to identifying the obvious misfits or unqualified. Thus preliminary interview is useful as a
process of eliminating the undesirable and unsuitable candidate. If the candidate seems to possess the
basic minimum requirements for efficient job performance, he is given an application form for being
filled out by him.
4) Screening Application Form: - Information given in the application form is used for selection
purposes. The applicant who seems to be not fit for the job on the basis of information given in the
application blank is rejected out rightly at this stage. The applicants who have not furnished the required
information may also be rejected. Applications will not be accepted after the close date. After the close
date of the recruitment, the Job Expert for the hiring department and Human Resources will screen the
application forms for minimum education and qualification requirements. A recruitment date may be
extended if there are no qualified candidates. Recruitments can also be open until the position is filled;
in this situation, applicants are reviewed and interviewed on a regular basis until an eligible candidate
can be selected and appointed to the available position.
5) Written test:- The organization have to conduct written examination for the qualified candidates after
they are screened on the basis of the application blanks so as to measure the candidate’s ability in
arithmetical calculations, to know the candidate’s attitude towards job, to measure the candidates
aptitude, reasoning, knowledge in various disciplines, general knowledge and English language.
Intelligence test measures the individuals capacity or reasoning, verbal comprehension, numbers,
vocabulary, word fluency etc. aptitude test measures individuals capacity or talent ability to learn a job
if he is given adequate training.
6) Final interviewing: - Final interview is usually followed by testing. This is the most essential step in
the process of selection. In this step the interviewer matches the information obtained about the
candidate through various means to the job requirements and to the information obtained through his
own observation during the interview. The basic objective of the interview is to measure the applicant
against the specific requirements of the job. Interview must be conducted in a friendly atmosphere and
the candidate must be made to feel at ease. The interviewer should not ask unwarranted questions which
make the candidate nervous. It being the two way communication, the interviewee should also be given
a chance to ask questions if he so likes, about the job and the organization.
7) Reference Checks: - After completion of the final interview, the personnel department will engage in
checking references. Candidates are required to give the name of reference in their application forms.
These references may be from the individuals who are familiar with the candidate’s academic
achievement or from the applicant’s previous employer, who is well versed with the applicant’s job
performance, and sometime from co-workers. If reference is checked in the correct manner, a great deal
can be learned about a person that an interview or tests cannot elicit. A good reference check used
sincerely fetches useful and reliable information to the organization.
8) Physical Examination: - The candidates who have crossed the above hurdles are required to go for the
medical examination. This is very important because of a person of poor health cannot work
competently and the investment in him may go waste. Thus, a thorough medical examination is
essential.
9) Selection: - If a candidate successfully overcomes all the obstacles or tests given he would be declared
selected. A appointment letter will be given to him mentioning the terms of employment, pay scales,
post on which selected etc.
MEANING AND DEFINITION OF PLACEMENT
Placement means offering of the job to the finally selected candidate. One the employee is selected he
should be placed on a suitable job. According to Pigors and Myres, placement may be defined as “the
determination of the job to which an accepted candidate is to be assigned, and his assignment to that
job. It is matching of what the supervisor has reason to think he can dos with the job demands(job
requirements); it is matching of what he imposes(in strain, working condition) and what offers is the
form of pay roll, companionship with other promotional possibilities etc.” A proper placement reduced
the employee turnover, absenteeism and accident rate and improves the morale. Placement is not an
easy process. It is very difficult for a new employee who is quite unknown to the job and environment.
For this reason, the employee is generally put on a probation period ranging from one year to two years.
At the end of the probation period, if the employee show a good performance, he is confirmed as a
regular employee of the organization. Thus, the probation period or trial period is a transition period at
the end of which management has to take decision whether the employee should be made regular or
discharged from the job.
PRINCIPLE OF PLACEMENT
Following principles are followed at the time of placement of an employee:
1) The man should be placed on the job according to requirements of the job. The job should not be
adjusted according to the qualifications or requirements of the man. “Job first, man next” should be the
principle of placement.
2) The job should be offered to the man according to his qualifications. Neither higher, nor lower job
should be offered to the new employee.
3) The employee should be made conversant with the conditions prevailing in the industry and all things
relating to the job. He should also be made aware of the penalties if he commits a wrong.
4) While introducing the job to the new employee, an effort should be mad to develop a sense of loyalty
and cooperation in him so that he may realize his responsibilities better towards the job and the
organization.
CAREER PLANNING AND DEVELOPMENT
INTRODUCTION:-
The term career planning is frequently used in relation young boys and girls studying at the college
level. College students are expected to consider their qualities (physical and mental), psychological
make-up, likes and dislikes, inclinations, etc. and decide what they want to be in their life. In other
words, they should decide what they want to achieve in their life and adjust their education and other
activities accordingly. This means they have to plan their career. In such career planning, parents,
family members and college teachers offer helping hand and guide young boys and girls in selecting the
most suitable career. Lot of literature, psychological tests etc. are also available on career planning.
Even lectures, workshops and TV programmes are arranged for guiding students on career selection
(particularly after the declaration of HSC results). Career planning enables them to use their
abilities/qualities fully and make their life happy, prosperous and rich in quality. At present, even
experts are available to help youth in their career planning. IQ and other tests are also conducted for this
purpose.
The term career planning and development is used extensively in relation to business organizations.
It is argued that if the organizations want to get the best out of their employees, they must plan the
career development programmes in their organization effectively. Such programmes offer benefits to
employees and also to the organizations. The employees will develop new skills will be available to the
organization. This type of career planning can be described as organizational career planning.
MEANING OF CAREER (WHAT IS CAREER?):-
A career is a sequence of positions/jobs held by a person during the course of his working life.
According to Edwin B. Flippo “a career is a sequence of separate but related work activities that
provide continuity, order and meaning to a person’s life”. Career of an employee represents various jobs
performed by him during the course of his working life. This is described as career path. In the case of
an ordinary worker, the career path includes the following job positions:
Unskilled worker – Semi-skilled worker – Skilled worker – Highly skilled
worker – Assistant foreman – Foreman.
Employees (of all categories) want to grow in their careers as this provides more salary, higher status
and opportunity to use knowledge, education and skills effectively. An individual with potentials joins a
firm not for job but for career development. An organization has to provide better opportunities to its
employees in their career development and also use their efficient services for the benefit of the
organization.
MEANING OF CAREER PLANNING (WHAT IS CAREER PLANNING?):-Career
planning is one important aspect of human resource planning and development. Every individual who
joins an organization desires to make a good career for himself within the organization. He joins the
organization with a desire to have a bright career in terms of status, compensation payment and future
promotions. From the point of view of an organization, career planning and development have become
crucial in management process. An organization has to provide facilities/opportunities for the career
development of individual employees.
If the organizations want to get the best out of their employees, they must plan regularly the career
development programmes in their organizations. In brief, career planning refers to the formal
programmes that organizations implement to increase the effectiveness and efficiency of the human
resources available. Career planning and development is the responsibility of the HR department of the
organization. As already noted, every person joining an organization has a desire to make career as per
his potentiality, ability, skills and so on.
NEED/PURPOSE/OBJECTIVES OF CAREER PLANNING:-
1) To map out careers of employees as per their ability and willingness and to train and develop them for
higher positions.
2) To attract and retain the right type of persons in the organization.
3) To utilize available managerial talent within the organization fully.
4) To achieve higher productivity and organizational development.
5) To provide guidance and assistance to employees to develop their potentials to the highest level.
6) To improve employee morale and motivation by providing training and opportunities for promotion.
SCOPE OF ORGANISATIONAL CAREER PLANNING:-
The following activities/areas are covered within the scope of organizational career planning:
a) HUMAN RESOURCE FORECASTING AND PLANNING :-
Here, efforts will be made to identify the number of employees required in future. In addition, the
selection procedure will be adjusted with the overall strategic goals of the organization.
b) CAREER INFORMATION :-
Here, information relating to career opportunities (promotions, training for self development, etc) will
be supplied to employees. Supplying career information/opportunities has special significance as this
motivates employees to grow and reach to higher position.
c) CAREER COUNSELLING :-
Such counselling is next to supplying career information. Career counselling is possible by senior
executives through periodic discussions with their subordinates. Such career guidance encourages
subordinate employees to take interest in certain areas where suitable opportunities of career
development are available. It is a type of internal guidance and motivation of employees for the
selection of possible career paths. Such counselling is needed when employees have to plan their own
careers and develop themselves for career progress.
d) CAREER PATHING :-
Management now plans job sequences for transfers and promotions of their employees. This makes
transfers and promotions systematically with advance information to employees. Career pathing creates
suitable mental make up of employees for self development.
e) SKILL ASSESSMENT TRAINING :-
Training is essential for career planning and also for manpower development. Along with job analysis,
organizational and job manpower requirement analysis should be undertaken by the management. This
prepares proper background for the introduction of career planning programmes for employees.
ADVANTAGES OF CAREER PLANNING:-
A properly designed system of career planning can provide the following benefits:
i. Career planning helps an employee to know the career opportunities available in an organization.
ii. Career planning encourages him to avail of the training and development facilities in the organization so
as to improve his ability to handle new and higher assignments.
iii. Career planning involves a survey of employee abilities and attitudes. It becomes possible, therefore to
group together people talking on a similar wavelength and place them under supervisors who are
responsive to that wavelength.
iv. Career planning anticipates the future vacancies that may arise due to retirement, resignation, death, etc.
at managerial level. Therefore, it provides a fairly reliable guide for manpower forecasting.
v. Career planning facilitates expansion and growth of the enterprise. The employees required to fill job
vacancies in future can be identified and developed in time.
DISADVANTAGES/LIMITATIONS OF CAREER PLANNING:-
The main problems in career planning are as follows:
i. Career planning can become a reality when opportunities for vertical ability are available. Therefore, it
is not suitable for a very small organization.
ii. Career planning is not an effective technique for a large number of employees who work on the shop
floor, particularly for illiterate and unskilled workers.
iii. In family business houses in India, members of the family expect to progress faster in their career than
their professional colleagues. This upset the career planning process.
iv. Systematically career planning becomes difficult due to favouritism and nepotism in promotions,
political intervention in appointments and reservations of seats for scheduled castes/tribes and backward
classes.
HOW TO INTRODUCE CAREER PLANNING PROGRAMME? (PROCESS OF
CAREER PLANNING):-
It is not easy to introduce career development programme at the level of an organization. Moreover,
such career development planning is a continuous activity. What is happening in most of the
organizations is that this concepts is given only lip service and theoretical importance. If the
organization wants to get the best out of their employees, it must plan the career developments
programmes continuously and effectively in its organization.
DETAILS OF THE STEP IN CAREER PLANNING:-
1) ANALYSIS OF PERSONEL SITUATION :-
This is the first step which needs to be completed before the introduction of career planning programme.
This relates to a time from which career planning is to be introduced. Here, the base line will be
prepared to help the planners to make projections for the planning period and to help in the evaluation
of plans. In order to analyze the present career situation, the following information will be required:
i. Total number of employees – their age distribution, qualifications, positions, specializations, etc.
ii. Structure – broad as well as detailed and the qualifications required for each grade.
iii. Personnel need of the organization. (Category wise)
iv. Span of control available within the organization.
v. Field staff at head office with necessary details, and
vi. Facilitates available for training and development within and outside the organization.
The information collected on these aspects serves as the base for the preparation of career
development plan for the future period.
1. ANALYSIS OF PESONNEL SITUATION
2. PROJECTION OF PERSONNEL SITUATION
3. IDENTIFYING CAREER NEEDS
In this second step, an attempt is being made to find out the situation likely to develop after the
completion of career development plan. This can be done on the basis of assumption which can predict
what is likely to happen at the close of the career development plan.
4. SELECTION OF PRIORITIES
5. DEVELOPMENT OF CAREER PLANS
6. WRITE UP OF FORMULATED CAREER PLANS
7. MANAGERIAL PLANNING
8. IMPLEMENTATION
9. REVIEW AND EVALUATION
10. FUTURE NEEDS
2) PROJECTION OF PERSONNEL SITUATION :-
3) IDENTIFYING OF CAREER NEEDS :-
In this third step of career development plan, efforts are made to find out precisely the career
development needs of the future period. It is possible to identify the scope and limitations of career
development needs on the basis of the data collected (through personnel inventory of the organization,
employee potentials, and appraisal of employees).
4) SELECTION OF PRIORITIES :-
It is rather difficult to meet all the needs of the employees and the organization for career development
immediately i.e. through one career development plan. Naturally, there is a need to select the pressing
and urgent problems of employees and organization. In addition, other factors such as technical,
financial and administrative must be taken into consideration while finalizing the priorities.
5) DEVELOPMENT OF CAREER PLAN :-
This is the most important step in the whole process of career developing plan. Such plan must describe
the following in concrete form/forms:
a. What is to be attained/achieved?
b. The extent to which it is to be attained,
c. The employees involved,
d. The department in which the proposed plan will operate;
e. The length of time required the achieving the goals.
In order to execute the career development plan, the organization should:
a) Introduce systematic policies and programmes of staff training and career development for all
categories of employees so as to enable them to:
I. Improve their level of skill and knowledge;
II. Gain wider experiences; and
III. Assume higher responsibilities.
b) Establish and effectively implement a system of study leave;
c) Develop the experience of the employees by encouraging their rotation from one region to another;
d) Take positive steps to encourage career development, such as:
I. Providing within the organization;
II. Giving priorities in the filling of vacancies in the following order for:
1. promotion within the organization;
2. Transfer within the organization;
3. Outside recruitment.
III. Removing artificial barriers to promotion;
IV. Establishing a register of employees for promotion on merit-cum-seniority basis;
6) WRITE-UP OF FORMULATED PLAN :-
After deciding the priorities of career development plan, the next major step is to prepare a write up
(brief report) of the career plan. This writ-up should contain all necessary details such as schedule (time
sequence of plan), procedures and other details so that the evaluation of the plan will be easy and
meaningful.
7) MONITORING PLANNING i.e. MONITORING OF CAREER DEVELOPMENT PLAN :-
Monitoring of the plan is essential for its effective execution. Expected results/benefits will be available
only when the plan is implemented properly. Planned (expected) targets and targets actually achieved
can be compared through suitable monitoring of the plan. The gap between the two (i.e. short falls) can
be located quickly. In addition, suitable remedial measures can be taken to rectify the shortfalls.
8) IMPLEMENTATION (OF CAREER DEVELOPMENT PLAN) :-
Implementation/execution of the plan is an integral aspect of planning process itself. For effective
implementation, co-operation and co-ordination at all levels is necessary. The implementation needs
proper monitoring so as to avoid possible shortfalls.
9) REVIEW AND EVALUATION OF CAREER PLANS :-
A plan needs periodical review. Such evaluation avoids mistakes, deficiencies, etc during the
implementation stage. It is built-in device to measure the effectiveness of the plan. Actual benefits
available will be known only through such review and evaluation. Such evaluation should be done by
experts. It should be conducted systematically and also impartially.
10)FUTURE NEEDS :-
This is the last step/stage of the current career development plan and the first step/stage of the next plan.
Here, on the basis of the achievements of the current plan, the career needs of the future period (of
employees and also of the organization) are estimated. The new priorities are decided and the details of
the new career development plan are prepared. Planning is a continuous process/activity. This rule is
applicable to career development plans of an organization.
CAREER STAGES:-
Education is thought of in terms of employment. People go for school and college education and
prepare for their occupation. Very few people stick to the same job throughout their life. Most of them
switch job either within the organization or in some other organization. Chances are they change jobs,
depending on available opportunity, several times before retirement. Where opportunity is restricted
they continue with the same job. They go through the following stages:
1) EXPLORATION :-
Almost all candidates who start working after college education start around mid-twenties. Many a time
they are not sure about future prospects but take up a job in anticipation of rising higher up in the career
graph later. From the point of view of organization, this stage is of no relevance because it happens
prior to the employment. Some candidates who come from better economic background can wait and
select a career of their choice under expert guidance from parents and well-wishers.
2) ESTABLISHMENT :-
This career stage begins with the candidate getting the first job getting hold of the right job is not an
easy task. Candidates are likely to commit mistakes and learn from their mistakes. Slowly and gradually
they become responsible towards the job. Ambitious candidates will keep looking for more lucrative
and challenging jobs elsewhere. This may either result in migration to another job or he will remain
with the Same job because of lack of opportunity.
3) MID-CAREER STAGE :-
This career stage represents fastest and gainful leap for competent employees who are commonly called
“climbers”. There is continuous improvement in performance. On the other hand, employees who are
unhappy and frustrated with the job, there is marked deterioration in their performance. In other to show
their utility to the organization, employees must remain productive at this stage. “climbers” must go on
improving their own performance. Authority, responsibility, rewards and incentives are highest at this
stage. Employees tend to settle down inn their jobs and “job hopping” is not common.
4) LATE CAREER :-
This career stage is pleasant for the senior employees who like to survive on the past glory. There is no
desire to improve performance and improve past records. Such employees enjoy playing the role of
elder statesperson. They are expected to train younger employees and earn respect from them.
5) DECLINE STAGE :-
This career stage represents the completion of one’s career usually culminating into retirement. After
decades of hard work, such employees have to retire. Employees who were climbers and achievers will
find it hard to compromise with the reality. Others may think of “life after retirement”.
HIGH EXPLORATION ESTABLISHMENT MID-CAREER LATE CAREER DECLINE
LOW 25 35 45 55 60
AGE
STAGES IN CAREER DEVELOPMENTCONCEPT/INTRODUCTION TO CAREER DEVELOPMENT:-
Career development consists of the personal actions one undertakes to achieve a career plan. The
terms ‘career development’ and ‘employee development’ need to be differentiated at this stage. Career
development looks at the long-term career effectiveness of employees where as employee development
focuses of effectiveness of an employee in the immediate future. The actions for career development
may be initiated by the individual himself or by the organization.
INDIVIDUAL CAREER DEVELOPMENT:-
Career progress and development is largely the outcome of actions on the part of an individual.
Some of the important steps that could help an individual cross the hurdles on the way ‘up’ may
include:
I. PERFORMANCE :-
Career progress rests largely on performance. If the performance is sub-standard, even modest career
goals can’t be achieved.
EXPOSURE:-
Career development comes through exposure, which implies becoming known by those who decide
promotions, transfers and other career opportunities. You must undertake actions that would attract the
attention of those who matter most in an organization.
II. NETWORKING :-
Networking implies professional and personal contacts that would help inn striking good deals
outside (e.g., lucrative job offers, business deals, etc.). for years men have used private clubs,
professional associations, old-boy networks to gain exposure and achieve their career ambitions.
III. LEVERAGING :-
Resigning to further one’s career with another employer is known as leveraging. When the
opportunity is irresistible, the only option left is to resign from the current position and take up the new
job (opportunity in terms of better pay, new title, a new learning experience, etc.). however, jumping the
jobs frequently (job-hopping) may not be a good career strategy in the long-run.
IV. LOYALTY TO CAREER :-
Professionals and recent college graduates generally jump jobs frequently when they start their
career. They do not think that career-long dedication to the same organization may not help them further
their career ambitions. To overcome this problem, companies such as Infosys, NIIT, WIPRO (all
information technology companies where the turnover ratios are generally high) have come out with
lucrative, innovative compensation packages in addition to employee stock option plans for those who
remain with the company for a specified period.
V. MENTORS AND SPONSORS :-
A mentor is, generally speaking, an older person in a managerial role offering informal career advice
to a junior employee. Mentors take junior employees under their protégé and offer advice and guidance
on how to survive and get ahead in the organization. They act as role models. A sponsor, on the other
hand, is someone in the organization who can create career development opportunities.
ORGANISATIONAL CAREER DEVELOPMENT:-
The assistance from managers and HR department is equally important in achieving individual
career goals and meeting organizational needs. A variety of tools and activities are employees for this
purpose.
SELF-ASSESSMENT TOOLS:-
Here the employees go through a process in which they think through their life roles, interests, skills
and work attitudes and preferences. They identify career goals, develop suitable action plans and point
out obstacle that come in the way. Two self-assessment tools are quite commonly used in the
organizations. The first one is called the career-planning workshop. After individuals complete their
self-assessment, they share their findings with others in career workshops. These workshops throw light
on how to prepare and follow through individual career strategies. The second tool, called as a career
workbook, consists of a form of career guide in the question-answer format outlining steps for realizing
career goals. Individuals use this company specific, tailor-made guide to learn about their career
chances. This guide, generally throws light on organization’s structure, career paths, qualifications for
jobs and career ladders.
a INDIVIDUAL COUNSELLING:-
Employee counselling is a process whereby employees are guided in overcoming performance
problems. It is usually done through face-to-face meetings between the employee and the counselor or
coach. Here discussions of employees’ interests goals, current job activities and performance and career
objectives take place. Counselling is generally offered by the HR department. Sometimes outside
experts are also be called in. if supervisors act as coaches they should be given clearly defined roles and
training. This is, however, a costly and time-consuming process.
a) EMPLOYEE DEVELOPMENT PROGRAMMES :-
These consist of skill assessment and training efforts that organizations use to groom their
employees for future vacancies. Seminars, workshops, job rotations and mentoring programmes are
used to develop a broad base of skills as a part of such developmental activities.
b) CAREER PROGRAMMES FOR SPECIAL GROUPS :-
In recent years, there is growing evidence regarding dual career families developing tensions and
frictions owing to their inability to reconcile the differences between the family roles and work
demands. When we talk of dual career couples (a situation where both husband and wife have distinct
careers outside the home) certain puzzling questions arise naturally: whose career is important; who
takes care of children; what if the wife gets a tempting promotion in another location; who buys
groceries and cleans the house if both are busy, etc. realizing these problems, organizations are
providing a place and a procedure for discussing such role conflicts and coping strategies. They are
coming out with schemes such as part-time work, long parental leave, child care centers, flexible
working hours and promotions and transfers in tune with the demands of dual career conflicts.
CAREER DEVELOPMENT ACTIONS:-
a) JOB PERFORMANCE :-
Employee must prove that his performance on the job is to the level of standards established, if he wants
career progress.
b) EXPOSURE :-
Employee’s desire for career progress should expose their skills, knowledge, qualifications,
achievements, performance etc., to those who take the decision about career progress.
c) RESIGNATIONS :-
Employees may resign the present job in the organization, if they find that career opportunities
elsewhere are better than those of the present organization.
d) CHANGE THE JOB :-
Employees who put organizational loyalty above career loyalty may change the job in the same
organization are better than those in the present job.
e) CAREER GUIDANCE :-
And counselling provides information, advice and encouragements to switch over to other career or
organization, where career opportunities are better.
EMPLOYEE TRAINING
INTRODUCTION:-
Training plays an important role in human resource development. It comes next to recruitment and
selection. In fact, the main purpose of training is to develop the human resources present within the
employees. In brief, training is the watchword of present dynamic business world. Training is necessary
due to technological changes rapidly taking place in the industrial field. New machines, new methods
and new techniques are introduced in the production, marketing and other aspect of business.
Training is for developing overall personality of an employee. It also creates positive attitude
towards fellow employees, job and the organization where he is working. Training is the responsibility
of the management as it is basically for raising the efficiency and productivity of employees.
The purpose of training is to achieve a change in the behaviour of those trained and to enable them to
do their jobs in a better way. The trainees will acquire new manipulative skills, technical knowledge,
problem solving ability or attitudes etc. training is not a one step process but is a continuous or never-
ending process. Training makes newly recruited workers fully productive in the minimum of time. Even
for old workers, training is necessary to refresh them and enable them to keep up with new methods and
techniques. In short training is the act of improving or updating the knowledge and skill of an employee
for performing a particular job.
DEFINITION OF TRAINING:-
According to Edwin Flippo, training is “the act of increasing the knowledge and skill of an
employee for doing a particular job”.
PRINCIPLES OF EMPLOYEE TRAINING:-
A sound training programme must possess the following characteristics:
1. Training programme should be less expensive.
2. Training programme should be developed for all in the organization and not for a particular group.
3. The programme should be conducted by a senior and experienced supervisor or executive of the
concern or by the training director who is incharge of the training section under personnel department.
4. Training programme should be designed taking in view the interests of both employer and employees.
5. It is not essential to follow the single method of training for all the employees. The purpose of training
is to develop the men and therefore more than one method may be followed for different groups.
6. Training should be followed by a reward. A reward should be provided at the conclusion of the training
such as promotion or a better job so that employees may be motivated.
7. Sufficient time should be provided to practice what has been learned by the employees.
MEANING AND IMPORTANCE:-
After an employee is selected, placed and introduced he or she must be provided with training
facilities. Training is the act of increasing the knowledge an skill of an employee for doing a particular
job. Training is a short-term educational process and utilizing a systematic and organized procedure by
which employees learn technical knowledge and skills for a definite purpose. In other words training
improves, changes, moulds the employee’s knowledge, skill, behaviour, aptitude, and attitude towards
the requirements of the job and organization. Training refers to the teaching and learning activities
carried on for the primary purpose of helping members of an organization, to acquire and apply the
knowledge, skills, abilities and attitudes needed by a particular job and organization.
Training is the most important technique of human resource development. As stated earlier, no
organization can get a candidate who exactly matches with the job and the organizational requirements.
Hence, training is important to develop the employee and make him suitable to the job. Trained
employees would be a valuable asset to an organisation. Organizational efficiency, productivity,
progress and development to a greater extent depend on training. Organizational objectives like
viability, stability and growth can also be achieved through training.
NEED FOR EMPLOYEE TRAINING:-
The need for training of employee is universally accepted and practical training in the form of
information, instructions and guidance is given to all categories of employees. It is a must for raising
efficiency of employees. Training is necessary in the present competitive and ever changing industrial
world. Specifically, the need for training arises due to the following reasons:
I. To match the employee specifications with the job requirements and organizational needs:
Management finds deviations between employee’s present specifications and the job requirements and
organizational needs. Training is needed to fill these gaps by developing and moulding the employee’s
skill, knowledge, attitude, behaviour etc. to the tune of the job requirements and organizational needs.
II. Organizational viability and the transformation process: The primary goal of most of the
organizations is that their viability is continuously influenced by environmental pressure. If the
organisation does not adapt itself to the changing factors in the environment, it will lose its market
share. If the organisation desires to adapt these changes, first it has to train the employees to impart
specific skills and knowledge in order to enable them to contribute to the organizational efficiency and
to cope with the changing environment.
III. Technological advances: Every organization in order to survive and to be effective should adopt the
latest technology, i.e., mechanization, computerization and automation. Adoption of latest technological
means and methods, will not be complete until they are manned by employees possessing skill to
operate them. So, organization should train the employees to enrich them in the areas of changing
technical skills and knowledge from time to time.
IV. Organizational complexity: With the emergence of increased mechanization and automation,
manufacturing of multiple products and by-products or dealing in services of diversified lines, extension
of operations to various regions of the country or in overseas countries, organisation of most of the
companies has become complex. This creates the complex problems of co-ordination and integration of
activities adaptable for and adaptable to the expanding and diversifying situations. This situation calls
for training in the skills of co-ordination, integration and adaptability to the requirements of growth,
diversification and expansion.
V. Human relations: Trends in approach towards personnel management has changed form the
commodity approach to partnership approach, crossing the human relations approach. So today,
managements of most of the organizations has to maintain human relations besides maintaining sound
industrial relations although hitherto the managers are not accustomed to deal with the workers
accordingly. So training in human relations is necessary to deal with human problems (including
alienation, inter-personal and inter-group conflicts etc.) and to maintain human relations.
VI. Change in the job assignment: Training is also necessary when the existing employee is promoted to
the higher level in the organisation and when there is some new job or occupation due to transfer.
Training is also necessary to equip the old employees with the advanced disciplines, techniques or
technology.
OBJECTIVES/PURPOSES OF EMPLOYEE TRAINING:-
1) To raise efficiency and productivity of employees and the organization as a whole. This means to
maintain and improve the work performance of employees.
2) To create a pool of well trained, capable and loyal employees at all levels and thereby to make provision
to meet the future needs of an organization.
3) To provide opportunities of growth and self-development (career planning) to employees and thereby to
motivate them for promotion and other monetary benefits. In addition, to give safety and security to the
life and health of employees.
4) To avoid accidents and wastages of all kinds. In addition, to develop balanced, healthy and safety
attitudes among the employees.
5) To meet the challenges posed by new developments in the field of science and technology.
6) To improve the quality of production and thereby to create market demand and reputation in the
business world.
7) To develop positive attitude and behaviour pattern required by an employee in order to perform a given
job efficiently. In other words, the purpose of training is to improve the culture of the organisation.
8) To develop certain personal qualities among employees which can serve as personal assets on long term
basis.
TYPES OF EMPLOYEE TRAINING:-
1) INDUCTION (ORIENTATION) TRAINING :-
Induction training is basically for introducing the organisation to newly appointed employees. It is a
very short informative type of training given immediately after joining the organization. It creates a
feeling of involvement in the minds of newly appointed employees. For induction training, information
booklets are issued and short informative films are shown. In addition, lecture by personnel
manger/HRD manger is also arranged. Induction training creates favourable impression on the newly
appointed employees and this impression remains in their mind over a long period.
2) JOB TRAINING :-
Job training relates to specific job which the worker has to handle. It gives information about machines,
process of production, instructions to be followed, methods to be used and precautions to be taken while
performing the job. This training develops skills and confidence among the workers and enables them to
perform the job efficiently.
3) TRAINING FOR PROMOTION :-
Promotion means giving higher position. Training must be given for performing duties at a higher level
efficiently. This facilitates easy and quick adjustment with the new job and also develops new insight
into the duties and responsibilities assigned. For this, training is given after promotion and before
actually joining the new assignment. This training is specific, precise and of short duration.
4) REFRESHER TRAINING :-
The purpose of refresher training is to refresh the professional skills, information and experience of
persons occupying important executive positions. It gives information about new developments
andtechniques to trainees and enables them to use new methods, techniques and procedures for raising
efficiency.
CORRECTIVE TRAINING:-
Corrective training is necessary when employees violate company rules and procedures. For example,
absence without prior sanction or smoking in a “No smoking” area or not using safety devices while
operating dangerous machines. Here, the behaviour of employee cannot be changes simply by
disciplinary action. The manager should handle the problem with treatment that corrects the outlook
rather than giving punishment. The manager should criticize the act and not the individual. He should
motivate concerned individual to correct his behaviour.
SELECTION OF TRAINEES :-
Once you have decided what training is necessary and where it is needed, the next decision is who
should be trained? For a small business, this question is crucial. Training an employee is expensive,
especially when he or she leaves your firm for a better job. Therefore, it is important to carefully select
who will be trained.
Training programs should be designed to consider the ability of the employee to learn the material
and to use it effectively, and to make the most efficient use of resources possible. It is also important
that employees be motivated by the training experience. Employee failure in the program is not only
damaging to the employee but a waste of money as well. Selecting the right trainees is important to the
success of the program.
TRAINING GOALS :-
The goals of the training program should relate directly to the needs outlined above. Course
objectives should clearly state what behavior or skill will be changed as a result of the training and
should relate to the mission and strategic plan of the company. Goals should include milestones to help
take the employee from where he or she is today to where the firm wants him or her in the future.
Setting goals helps to evaluate the training program and also to motivate employees. Allowing
employees to participate in setting goals increases the probability of success.
METHODS OF EMPLOYEE TRAINING:-
As a result of research in the field of training, a number of programmes are available. Some of these
are new methods, while others are improvements over the traditional methods. The training programmes
commonly used to train operative and supervisory personnel are discussed below. These programmes
are classified into on-the-job and off-the-job training programmes.
ON-THE-JOB TRAINING METHODS
This type of training, also known as job instruction training, is the most commonly used method.
Under this method, the individual is placed on a regular job and taught the skills necessary to perform
that job. The trainee learns under the supervision and guidance of a qualified worker or instructor. On-
the-job training has the advantage of giving first hand knowledge and experience under the actual
working conditions. The problem of transfer of trainee is also minimized as the persons learns on-the-
job. On-the-job training methods include job rotation, coaching, job instruction or training through step-
by-step and committee assignments.
a) JOB ROTATION :-
This type of training involves the movement of the trainee from one job to another. The trainee receives
job knowledge and gains experience from his supervisor or trainer in each of the different job
assignments. Though this method of training is common in training managers for general management
positions, trainees can also be rotated from job to job in workshop job. This method gives an
opportunity to the trainee to understand the problems of employees on other jobs and respect them.
b) COACHING :-
The trainee is placed under a particular supervisor who functions as a coach in training the individual.
The supervisor provides feedback to the trainee on his performance and offer him for suggestions for
improvement. Often the trainee share some of the duties an responsibilities of the coach and relieves
him of his burden. A limitation of this method of training is that the trainee may not have the freedom or
opportunity to express his own ideas.
c) JOB INSTRUCTION :-
This method is also known as training through step by step. Under this method, the trainer explains to
the trainee the way of doing the job, job knowledge and skills and allow him to do the job. The trainer
appraises the performance of the trainee, provides feedback information and corrects the trainee.
d) COMMITTEE ASSIGNMENTS :-
Under the committee assignments, a group of trainees are given and asked to solve an actual
organizational problem. The trainees solve the problem jointly. It develops team work.
OFF-THE-JOB METHODS
Under this method of training, the trainee is separated form the job situation and his attention is
focused upon learning the material related to his future job performance. Since the trainee is not
distracted by job requirements, he can place his entire concentration on learning the job rather than
spending his time in performing it. There is an opportunity for freedom of expression for the trainees.
Off-the-job training methods are as follows:
a) VESTIBUTE TRAINING :-
In this method, actual work conditions are simulated in a class room. Material, files and equipments
those are used in actual job performance are also used in training. This type of training is commonly
used for training personnel for clerical and semi-skilled jobs. The duration of this training ranges from
days to a few weeks. Theory can be related to practice in this method.
b) ROLE PLAYING :-
It is defined as a method of human interaction that involves realistic behaviour in imaginary situations.
This method of training involves action, doing and practice. The participants play the role of certain
characters, such as the production manager, mechanical engineer, superintendents, maintenance
engineers, quality control inspectors, foreman, workers and the like. This method is mostly used for
developing interpersonal interactions and relations.
c) LECTURE METHOD :-
The lecture is a traditional and direct method of instruction. The instructor organizes the material and
gives it to a group of trainees in the form of a talk. To be effective, the lecture must motivate and create
interest among the trainees. An advantage of lecture method is that it is direct and can be used for a
large group of trainees. Thus, costs and time involved are reduced.
d) CONFERENCE OR DISCUSSION :-
It is a method in training the clerical, professional and supervisory personnel. This method involves a
group of people who pose ideas, examine and share facts, ideas and data, test assumptions, and draw
conclusions, all of which contribute to the improvement of the job performance. Discussion has the
distinct advantage over the lecture method, in that the discussion involves two-way communication and
hence feedback is provided. The participants feel free to speak in small groups. The success of this
method depends on the leadership qualities of the person who leads the group.
ADVANTAGES OF EMPLOYEE TRAINING:-
Training is advantageous not only to the organization but also to the employees.
1. INCREASE IN WAGE EARNING CAPACITY :-
Training helps the employees in acquiring new knowledge and job skills. In this way, training increases
their market value and wage earning power. This increases their pay and status.
2. JOB-SECURITY :-
Continued training can help an employee to develop his ability to learn- adapting himself to new work
methods, learning to use new kinds of equipment and adjusting to major changes in job contents and
work relationship.
3. CHANCES FOR PROMOTION :-
Training also qualifies the employees for promotion to more responsible jobs.
4. FOLLOW UP OF SELECTION PROCEDURE :-
Training is a follow up of selection procedure. It helps in choosing the most appropriate individuals for
different jobs. Training can be used in spotting out promising men and in removing defects in selection
process.
5. BETTER PERFORMANCE :-
Training brings about an improvement of the quality and quantity of output by increasing the skill of the
employees. Training makes the fresh and old employees more skilled and accurate in performance of
their work.
6. REDUCTION IN COST OF PRODUCTION :-
If the employees are given proper training the need for supervision is lessened. Training does not
eliminate the need for supervision but it reduces the need for detailed and constant supervision. A well
trained employee is self-reliant in his work because he knows what to do and how to do it.
EVALUATION OF TRAINING PROGRAMME:-
The process of training evaluation has been defined as “any attempt to obtain information on the
effects of training performance, and to assess the value of training in the light of that information.”
Evaluation leads to controlling and correcting the training programme. Hamblin suggested five levels at
which evaluation of training can take place, viz., reactions, learning, job behaviour, organization and
ultimate value.
i. REACTIONS :-
Training programme is evaluated on the basis of trainee’s reactions to the usefulness of coverage of the
matter, depth of the course content, method of presentation, teaching methods etc.
ii. LEARNING :-
Training programme, trainer’s ability and trainee ability are evaluated on the basis of quantity of
content learned and time in which it is learned and the learner’s ability to use or apply, the content he
learned.
iii. JOB BEHAVIOUR :-
This evaluation includes the manner and extent to which the trainee has applied his learning to his job.
iv. ORGANISATION :-
This evaluation measures the use of training, learning and change in the job behaviour of the
department/organization in the form of increased productivity, quality, morale, sales turnover and the
like.
v. ULTIMATE VALUE :-
It is the measurement of ultimate result of the contributions of the training programme to the company
goals like survival, growth, profitability etc., and to the individual goals like development of personality
and social goals like maximizing social benefit.
ORGANISED TRAINING PROGRAMME IN AN INDUSTRY:-
It is not possible to suggest a training programme equally good for each and every organisation.
Training programmes differ on the basis of many individual characteristics of the organisations and the
employees usually in the organisation of training programmes. The following steps are taken to organise
the training programme:
1) IDENTIFYING THE TRAINING NEEDS :-
Training programme should be set up only after having decided the decided the clear-cut objective in mind. A training programme should be established only when it is felt that it would assist in the solution of specific operational problems. The most important step is to make a thorough analysis of the entire
organisation, its operations and manpower resources available in order to find out “the trouble spots” where training may be needed.
a) ANALYSING JOBS AND MEN :-
If the men are less capable to perform the particular jobs they can be given training to increase their skills. Jobs and worth of the men should be analysed through job analysis and performance appraisal.
b) IDENTIFYING PRODUCTION PROBLEMS :-
Production problems like low productivity, poor quality, high cost, high rate of absenteeism, labour turnover etc. should be identified to indicate the need for training.
c) COLLECTING OPINIONS :-
Opinions should be obtained from the management and the working people through interviews or through questionnaire regarding necessary and desirable training programmes.
2) GETTING READY FOR THE JOB :-
Following are the steps taken in this regard:
a) IDENTIFYING THE TRAINEE :-
Under this step it is to be decided who is to be trained. who is to be trained – the new comer or the older
employee or the supervisory staff or all of them selected from different departments. The proper
selection of trainees is very important to obtain permanent and gainful results of training. A trainee
should be trained for the kind of job he likes and is suitable to perform. Careful screening of candidates
for training raises the effectiveness of the training work. Trainee should be given the proper background
information before he starts learning new job skills and knowledge. Trainer should explain the trainee
the importance of the job, its relationship with the work flow and the importance of training.
b) SELECTION OF TRAINING METHOD :-
Now it is advisable to lay down which method is to be adopted fro the training. Different methods of
training may be suggested for the different levels of personnel. Unskilled workers may be trained on the
job. On-the-job and apprenticeship training may be awarded, to skilled and semi-skilled workers. For
supervisory and executive personnel On-the-job and Off-the-job methods such as role-playing, lectures
and seminars etc. may be recommended.
c) PREPARATION OF TRAINER OR INSTRUCTOR :-
The success of the training programme much depends upon the instructor. Instructor must be well-
qualified and may be obtained from within or outside the organization. It should be decided beforehand
what is to be taught and how. He should be able to divide the job into logical parts so that he may teach
one part at a time without losing his perspective of the whole.
As because training must be based upon the needs of the organization therefore, the trainer must have a
clear-cut picture of the objectives of training in mind. It should not be in a vacuum. Trainer needs
professional expertise in order to fulfill his responsibility. He should also encourage the question from
the trainees.
d) TRAINING MATERIAL :-
There should always be the training material with the instructor. Training materials may include some
text or written materials as a basis for instruction, review and reference. This may be prepared in the
training section with the help of supervisors. The written material should be distributed among the
trainees so that they may come prepared in the lecture class and may be able to understand the operation
quickly and remove their doubts, if any.
e) TRAINING MATERIAL :-The length of training period depends upon the skill of the trainees,
purpose of the training, trainee’s learning capacity and the training media used. Generally no single
session should last longer than two hours. The time of training whether before or after or during
working hours should be decided by the personnel manager taking in view the loss of production and
benefits to be achieved by training.
2) PREPARATION OF THE LEARNER :-
This step consists:
i. The putting the learner at case so that he does not feel nervous because of the fact that he is on a new
job,
ii. In stating the importance of ingredients of the job and its relationship towards flow,
iii. In explaining he is being taught,
iv. In creating interest and encouraging questions, finding out what the learner already knows about his job
or other jobs,
v. In explaining why of the whole job and relating it to some job the worker already knows,
vi. In planning the learner as close to his normal working position as possible, and
vii. In familiarizing him with the equipment, materials tools and trade terms.
3) PRESENTATION OF OPERATIONS AND KNOWLEDGE :-
This is the most important step in a training programme. The trainer should clearly tell, show, illustrate
and question I order to put over the new knowledge and operations. The learner should be told of the
sequence of the entire job and why each step in its performance is necessary instructions should be
given clearly, completely and patiently. Trainer should demonstrate or make use of audio-visual aids
and should ask the trainee to repeat the operations
4) PERFORMANCE TRY-OUT :-
Under this, the trainee is asked to go through the job several times slowly, explaining him each step.
Mistakes are corrected and if necessary some complicated steps are taken for the trainee for the first
time. Then the trainee is asked to do the job, gradually building up skill and speed. The trainee is then
tested and the effectiveness of a training programme evaluated.
5) FOLLOW-UP :-
On the completion of training programme trainees should be placed to the job. The supervisor should
have a constant vigil on the person still facing any difficulty on the job, he must be given full guidance
by the immediate supervisor and should be initiated to ask questions to remove the doubts.
COLLECTIVE BARGAINING
INTRODUCTION
The phrase ‘Collective bargaining’ is coined by Sydney & Beatrice Webb. According to them
collective bargaining is a method by which trade unions protect & improve the conditions of
their members’ working lives.
Before the Industrial Revolution, the employer, more or less, enjoyed unquestioned powers on
matters relating to wage, working conditions & other matters affecting employees. The week
bargaining strength of employees tempted them, on occasions, to exploit the vulnerable
situation to their advantage. Workers as a result became restless & widespread protests
followed. Governmental intervention was of little help. Workers realized the importance of
fighting jointly on all work-related matters. This collective fighting spirit is behind the back of
collective bargaining. With the growth of union movement all over the globe & the emergence
of employers’ associations, the collective bargaining process has undergone significant changes.
Both parties have, more or less, realized the importance of peaceful co-existence for their
mutual benefit & continued progress.
OBJECTIVES
The main objectives of Collective bargaining are given below:
To settle disputes / conflicts relating to wages & working conditions.
To protect the interests of workers through collective plan.
To resolve the differences between workers & management though voluntary negotiations &
arrive at a customer.
To avoid third party intervention in matters relating to employment.
Functions of Collective Bargaining
Collective bargaining plays an important role in preventing industrial disputes, setting these
disputes & maintaining industrial peace by performing the following functions:
Increase the economic strength of employees & management.
Establish uniform conditions of employment.
Secure a prompt & fair redressal of grievances.
Lay down fair rates of wages & other norms of working conditions.
Achieve an efficient functioning of the organization.
Promote the stability & prosperity of the company.
It provides a method of the regulation of the conditions of employment of those who are directly
concerned about them.
It provides a solution to the problem of sickness in the industry & ensures old age pension
benefits & other fringe benefits.
It builds up a system of industrial jurisprudence by introducing civil rights I the industry. In
other words, it ensures that the management is conducted by rules rather than by arbitrary
decisions.
COLLECTIVE BARGAINING PROCESS
There are two stages in collective bargaining, viz., (i) the negotiation stage & (ii) the stage of
contract administration.
1. Negotiation
(a) Identification of Problems
The nature of the problem influences the whole process-whether the problem is very important
that is to be discussed immediately or it can be postponed for some other convenient time,
whether the problem is minor that it can be solved with the other party’s acceptance on its
presentation & does not need to involve the long process of collective bargaining process etc.
(b) Preparing for Negotiations
When it becomes necessary to solve the problem through collective bargaining process, both the
parties prepare themselves for negotiations.
(c) Negotiations of Agreement
Usually there will be a chief negotiator who is form the management side. He directs & presides
over the process. The chief negotiator presents the problem, its intensity & nature & the views
of both parties. When a solution is reached at, it is put on the paper, taking concerned
legislations into consideration. Both parties concerned sign the agreement which, in tern,
become a binding contract for both the parties.
2. Contract Administration
Implementation of the contract is as important as making a contract. Management usually
distributes the printed contract, its terms & conditions throughout the organization. The union
takes steps to see that all the workers understand the contract & implement it. From time to time
depending upon changing circumstances, both the parties can make mutually acceptable
amendments.
SUGGESTIONS FOR EFFECTIVE IMPLIMENTATION OF COLLECTIVE BARGAINING
Unions should be made strong by creating awareness among workers.
Interference of political leaders should be avoided. The unions should separate themselves from
politics.
Govt. should make efforts for the growth of collective bargaining. Adjudication should be used
only as a last resort. Govt. can make legislation for compulsory collective bargaining before
resorting to adjudication.
Management should develop a positive attitude toward unions. Much headway has already been
made in this direction. Presently, managers are mostly aware of the rights of workers. They are
also realizing how important cooperation between management & workers for the effective
functioning of an organization. As such, they are now encouraging negotiations & amicable
solutions.
INDUSTRIAL CONFLICTS
All the issues refer to collective bargaining may not be settled to the satisfactions of both the
parties. Such issues result in Industrial Conflicts.
DEFINITION OF DISPUTE / CONFLICT
According to the Industrial Disputes Act, 1947, Section 2(k), “Industrial dispute means any
dispute or difference between employers & employers, or between employers & workmen or
between workmen & workmen, which is connected with the employment or non employment or
term of employment or with the conditions of labour of any person.”
CAUSES OF INDUSTRIAL CONFLICTS
It is not easy to identify a single factor as a cause of industrial conflicts as multifarious causes
blended together result in industrial disputes. Deep seated & more basic causes of disputes can
be identified through in depth probe, though surface manifestations appear to be responsible for
conflicts. The relative importance of these causes, when more than presents, is often very
difficult to gauge.
According to Mukherjee, “The development of capitalistic enterprise, which means the control
of the tools of production by the small entrepreneur class has brought to the fore the acute
problem of friction between management & labour throughout the world.”
Causes of industrial conflicts may be grouped into four categories,
Industrial factors,
Management’s attitude towards workers,
Government machinery &
Other causes.
TYPES OF INDUSTRIAL CONFLICT
Strike
A strike is a spontaneous and concerted withdrawal of the labour from production temporarily.
It is a collective stoppage of work by group of workers for pressuring their employer to accept
certain demands. The industrial disputes act 1947 has define a strike as “an assertion of work by
a body of persons.” employed in an industry acting in combination, or a concerted refusal or a
refusal under a common understanding of any no of persons who are or have been so employed
to continue to work or to accept employment. Strikes are of several types,
Sympathetic strike
When a strike is undertaken to show sympathy with workers in other industries, it is called as
sympathetic strike.
General strike
It is a strike by all or most of the unions in a industry or a region
Unofficial strike
It is a strike undertaken without the consent of the unions.
Sectional strike
It is refusal of a section of a given class of workers to perform their normal duties.
Bumper strike
It is a strike when the unions plan to paralyse the industry, firm by firm, the order being chosen
by the union. Such strikes are supported by the contributions of those who are still in work.
Sit down strike (also called stay-in, tool down, pen down strike)
It is a strike in which workers cease to perform this duties but do not leave the place of work.
Slow-down strike
Known as a ‘go-slow’ tactic the workers do not stop working but put brakes to the normal way
of doing things.
Lightning strike
Out of provocation, workers may go on strike without notice or at very short notice. There is an
element of surprise in such cat-call strikes.
Hunger strike
To gain sympathy from the public & get noticed by the employer, workers may decide to forego
food for a specified period. Small batches of workers may also go on a relay hunger strike in a
sequential order. Such non-violence protests generally bring moral pressure on employers to
iron out the differences with quickly.
Lock-outs
Lock-out is the counterpart of strike. It is a weapon available to the employer to close down the
factory till the workers agree to resume work on the conditions lead down by the employer. The
industrial Dispute Act of 1947 defined it as “the closing of a place of an employment, or the
suspension of work or the refusal of an employer to continue to employ any number of persons
employed by him”. If it is impossible to meet the demand of workers, employers may decide to
go for lock-out. He may also draw the shutter down so as to bring psychological pressure on the
workers to agree to his condition or face closure of the unit.
Gherao
Gherao means to surround. In this method a group of workers initiate collective action
aimed at preventing members of the management from leaving the office. This can happen
outside the factory premises too. The persons who are ‘gheraoed’ are not allowed to move for a
long time, sometimes without food or water. The National Commission on Labour, while
refusing to accept it as a form of industrial protest, opined that gheraos tend to inflict physical
duress (as against economic pressure) on the persons affected & endanger not only industrial
harmony but also create problems of law & order.
Picketing & Boycott
In picketing workers carry / display signs, banners & play card (in connection with the
dispute) & prevent others from entering the place of work & persuade others to join the strike.
Boycott aims at disrupting the normal functioning of an enterprise. Through forceful appeals &
negative behavioral acts, striking workers prevent others from entering the place of work &
persuade them not to cooperate with the employer.
PREVENTION OF INDUSTRIAL CONFLICTS
Prevention of industrial disputes may have different methods. These methods “cover the
entire field of relations between industry & labour & include enactment & enforcement of
progressive legislation, works committees & councils, wage boards, & trade boards, profit
sharing & co-partnership, education, housing, welfare work & all such measures which can
bridge the gap between the employers & the employed.” The significant preventive measures
may be broadly outlined as below:
Prevention Measures of Industrial Conflicts
Labour Standing Grievances Joint
Welfare Orders Procedure Consultation
Officer
Strong Joint Collective Labour Co-partnership
Trade Consultations Bargaining & Profit Sharing
Unions
Labour welfare Officer
Sec. 49 (1) & (2) of the factories act, 1948, specifies that every factory wherein 500 or more
workers are ordinarily employed, at least 1 officer must be appointed, where the number of
workers are in excess of 2,500, the assistance & or additional welfare officers are required to be
appointed to assist the welfare officer.
Standing orders
Majority of the industrial disputes are related to conditions of employment. To prevent the
industrial conflict relating to employment conditions, standing orders are formulated. It was
made obligatory that standing orders should govern the conditions of employment under the
industrial employment (standing orders) act of 1946. The standing orders regulate the
conditions of employment from the stage of entry to the stage of exit or retirement. Standing
orders act as a code of conduct for the employees during the working life of employees as they
provide do’s & do nots.
Grievance procedure
Grievances generally arise from day – to – day working relations. Grievances of the
employees are redressed by the management. Management can prevent the occurrence of
industrial disputes by solving the individual problems.
Collective bargaining
As discussed earlier, collective bargaining helps for settlement of issues & prevention of
industrial disputes. Government also helps trade unions & govt. to come closer to each other &
come to an agreement.
Strong trade unions
Strong trade unions have the stability of membership, sound financial position & healthy
polices. Such unions think & act constructively for the mutual benefit of the employees & the
management. These practices naturally prevent the industrial conflicts.
Labour co – partnership & profit sharing
Labour co – partnership & profit sharing create a sense of belongness among the employees &
they fill that they are the partners in the company. As such, they think & act for the benefit of
the company.
Joint consultations
A Joint consultation between the employees & employer are the differences between them &
prevents industrial conflicts.
SETTLEMENT OF CONFLICTS
The methods of the settlement of conflicts generally include those mentions in the below
1. Investigation
This is conducted by a board or court appointed by the government. It may be voluntary or
compulsory. If the investigation is conducted on an application by either or both the parties to
the dispute, it is voluntary. If the Government appoints a Court of Inquiry to investigate into a
dispute without the consent of the parties, it is compulsory. Investigations do not aim at
bringing about the settlement of disputes directly, but by analyzing the facts, they aim at
bringing about an amicable solution. When the investigation is compulsory, the strikes & lock-
outs are required to be stopped & employers should not make any change in the conditions of
employment. The result of investigation has no serious effect on the dispute because the general
public is least bothered to make note of the dispute.
2. Meditation
Another attempt to settle disputes is Meditation. In this method, an outsider assists the parties in
their negotiation. It takes place with the consent of both the parties. The mediator performs the
messenger’s job for both the parties & he neither imposes his will nor his judgment upon them.
The main aim of meditation is the settlement of disputes by brining about a voluntary
agreement. There may be three kinds of meditation:
a. The Eminent Outsider;
b. Non-Government Board; &
c. Semi-Government Board.
If meditation is conducted skillful & sympathetically along proper lines, it can bring about the
adjustment of differences that might otherwise contribute to stoppage of work.
3. Conciliation
The main objective of a condition & arbitration is to reunite the two conflicting groups in the
industry in order to avoid interruption of production, distrust etc.
Conciliation is a process by which representatives of both workers & employers are brought
together before a third party with a view to persuading them to arrive at some sort of settlement.
It is an extension of collective bargaining with third party assistance. It is the practice by which
the services of the neutral third party as used in a dispute as a means of helping the disputing
parties to reduce the extent of their differences & to arrive at an amicable settlement or agreed
solution. It is a process of rational & orderly discussions of differences between the parties to a
dispute under the guidance of a conciliator.
Conciliation machinery consists of a conciliation officer & board of conciliations. The
conciliator induces the parties to a course of action. He plays the role of an innovator, protector,
discussion leader, stimulator, advisor, face saver. He acts as a safety value & a communication
link.
The task of conciliation is to offer advice & make suggestions to the dispute on controversial
issues.
4. Voluntary Arbitration
If the two parties to the dispute fail to come to an agreement, either by themselves or with the
help of a mediator or conciliator, who agrees to submit the dispute to an impartial authority,
whose decision, they are ready to accept. The essential elements in voluntary arbitration are:
The voluntary submission of dispute to an arbitration;
The subsequent attendance of witness & investigations &
The enforcement of an award may not be necessary.
5. Compulsory Arbitration / Adjudication
Where trade unions are week, the method of Compulsory Arbitration is used. Compulsory
Arbitration is utilized generally when the parties fail to arrive at a settlement though the
voluntary methods.
In India, Compulsory Arbitration is enforced because collective bargaining was not used for
regulating wages & other conditions of employment.
It may be said that Compulsory Arbitration may be at times & under certain circumstances,
necessary & desirable. The nature, scale & timing of state intervention should be suited to the
needs of different occasions. The objective of state intervention in the field of industrial
relations should be to do social justice & make the weaker party equally strong to enable it
ultimately to stand & survive on its own & settle its differences through negations & collective
bargaining.
Compulsory Arbitration is one where the parties are required to arbitrate without any
willingness on their part. Any one of the parties may apply to the appropriate governments to
refer the dispute to adjudication machinery.
promotionWhen there are vacancies in an organization, they can be filled up by the internal or external candidates.
Though the organization prefers to fill up the vacancies by the external candidates through the selection
procedure, the internal candidates may also apply for post and may be tested and selected for higher
level job in the organizational hierarchy at par with external candidates. Is such upward movement of an
employee a promotion? Or it is purely selection? It is purely a selection. If the organization prefers to
fill a vacancy only by the internal candidates, it assigns that higher level job to the selected employee
from within through promotion tests. Such upward movement can be said as promotion.
► Definition:-
“Promotion is advancement of an employee to a better job- better in terms of grater
responsibility, more prestige or status, greater skills and especially increased rate of pay or salary.”
- Paul Pigors and Charles A. Myers.
“The upward reassignment of an individual in an organizational hierarchy, accompanied by
increased responsibilities, enhanced status and usually with increased income though not always so.”
- Arun Monappa and Mirza S. Saiyadain.
Promotion is the reassignment of a higher level job to an internal employee with delegation of
responsibilities and authority required to perform that higher job and normally with higher pay. Thus,
the main conditions of promotion are:-
1) Reassignment of higher level job to an employee than what he is presently performing.
2) The employee will naturally be delegated with greater responsibility and authority than what he has had
earlier.
3) Promotion normally accompanies higher pay.
Promotion may be temporary or permanent depending upon the organizational needs and employee
performance.
► Purpose of promotion:-
Organizations promote the employee with a view to achieve the following purposes:-
1) To utilize the employee’s skills, knowledge at the appropriate level in the organizational hierarchy
resulting in organizational effectiveness and employee satisfaction.
2) To develop competent spirit and inculcate the zeal in the employees to acquired the skills, knowledge
etc. required by higher level jobs.
3) To develop competent internal source of employees ready to take up jobs at higher level in the changing
environment.
4) To promote employee’s self development and make them await their turn of promotions. It reduces
labour turnover.
5) To promote a feeling of content with the existing conditions of the company and a sense of
belongingness.
6) To promote interest in training, development programmers and in team development areas.
7) To build loyalty and to boost morale.
8) To reward committed and loyal employees.
9) To get rid of the problems created by the leader of workers’ unions by promoting them to the officer’
levels where they are less effective in creating problems.
Merit as a basis of promotion:-
Merit is taken to denote an individual employee’s skills, knowledge, ability, efficiency and
aptitude as measured from educational, training and past employment record. The merits of merit
system of promotion are:
1) The resources of higher order of an employee can be better utilized at a higher level. It result in
maximum utilization of human resources in an organization
2) Competent employees are motivated to exert all their resources and contribute them to the
organizational efficiency and effectiveness
3) It works as golden hand-cuffs regarding employee turnover,
4) Further it continuously encourages the employees to acquire new skill, knowledge etc. for all-round
development.
Despite these advantages the merit systems suffer from some demerit. They are:
1) Measurement or judging of merit is highly difficult.
2) Many people, particularly trade union leaders, distrust the management’s integrity in judging merit.
3) The techniques of merit measurement are subjective.
4) Merit denotes mostly the past achievement, efficiency but not the future success. Hence, the purpose of
promotion may not be served if merit is taken as sole criteria for promotion.
Senior as a basis of promotion
Seniority refers to relative length of service in the same job and in the same organization. The logic
behind considering the seniority as a basis of promotion is that there is a positive correlation between
the length of service in the same job and the amount of knowledge and the level of skill acquired by an
employee in an organization. This system is also based on the custom that the first in should be given
first chance in all benefit and privileges.
► Advantages of seniority as a basis of promotion are:
1) It is relatively easy to measure the length of service and judge the seniority.
2) There would be full support of the trade unions to this system.
3) Every party trust the management’s action as there is no scope for favoritism and discrimination and
judgment.
4) It gives a sense of certainty of getting promotion to every employee and of their turn of promotion.
5) Senior employees will have a sense of satisfaction to this system as the older employees are respected
and their inefficiency cannot be pointed out.
6) It minimizes the scope for grievances and conflicts regarding promotion.
7) This system seems to reserve the purpose in the sense that employees may learn more with increase in
the length of service.
► In spite of these merits, this system also suffers from certain limitations. They are:
1) The assumption that the employees learn more relatively with length of service is not valid as this
assumption has reverse effect. In other words employees learn up to a certain age and beyond that stage
the learning ability of the cognitive process diminishes.
2) It denominates the young and more competent employees and results in employee turnover particularly
among the dynamic force.
3) It kills the zeal and interest to develop as everybody will be promoted with or without improvement.
4) Organizational effectiveness may be diminishes through the deceleration of the human resource
effectiveness as the human resource consists of mostly undynamic and old blood.
5) Judging the seniority though it seems to be in the theoretical sense. it is highly difficult in practice as the
problems like job seniority, company seniority, zonal/regional seniority, service in different
organizations, experience as apprentice trainee, trainee, researcher, length of service not only by days
but hours and minutes will crop up.
Thus the two main basic of promotion enjoy certain advantages and at the same time suffer from certain
limitations. Hence, a combination of both of them may be regarded as an effective basis of promotion.
Seniority-cum-merit
Management mostly prefers merit as the basis of promotion as they are interested in enriching its human
resources. But trade union favour seniority as the sole basis for promotion with a view to satisfy the
interests of majority of their members.
Hence a combination of both seniority and merit can be considered as the basis for promotion satisfying
the management for organizational effectiveness and employees and trade union for respecting the
length of service. A balance between seniority and merit should be struck and a new basis is to be
developed. There are several ways in striking the balance between these two basis.viz:-
1) Minimum length of service and merit:-
Under this method all those employees who complete the minimum service, say five years, are made
eligible for promotion and then merit is taken as the sole criteria for selecting the employee for
promotion from the eligible candidates. Most of the commercial bank in India has been following this
method for promoting the employees from clerk’s position to officer’s position.
2) Measurements of seniority and merit through a common factor.
3) Minimum merit and seniority:-
In contrast to the earlier methods, minimum score of merit which is necessary for the acceptable
performance on the future job is determined and all the candidates who secure minimum score are
declared as eligible candidates. Candidates are selected for promotion based on their seniority only from
the eligible candidates.
► Benefit of promotion:-
1) Promotion places the employees in a position where an employee’s skills and knowledge can be better
utilized.
2) It creates and increases the interest of the other employees in the company as they believe that they will
also get their turn.
3) It creates among employees a feeling of content with the existing conditions of work and employment.
4) It increases interest in acquiring higher qualifications, in training and in self development with a view to
meet the requirement of promotion
5) Promotion improves employee morale and job satisfaction.
6) Ultimately it improves organizational health.
► Problems with promotion:-
Though promotions benefit the employee and the organization, it creates certain problems. They are
disappointment of the candidates, refusal of promotions etc.
Promotion disappointment some employees:-
Some employees who are not promoted will be disappointed when their colleagues with similar
qualifications and experience are promoted either due to favoritisms or due to lack of systematic
promotion policy. Employee may develop negative attitude and reduce their contributions to the
organization and prevent organizational and individual advancement.
Some employee refuse promotion:-
There is a general tendency that employee accept promotion. But their are several incidents where
employees refuse promotions. These include promotion together with transfer to an upward place,
promotion that level where the employee feels that he will be quite incompetent to carry out the job,
delegation of unwanted responsibilities, and when trade union leader feel that promotion causes damage
to their position in trade union.
The other problems associated with the promotion are: some superiors will not relieve their
subordinates who are promoted because of their indispensability in the present job and inequality in
promotional in different departments, regions and categories of jobs.
Promotion problems can be minimized though a career counseling by the superiors and by
formulating a systematic promotion policy
► Promotion policy
Every organizational has to specify clearly its policy regarding promotion based on its corporate policy.
The characteristics of a systematic promotion policy are:
1) It should be considered the sense that policy should be applied uniformly to all employees irrespective
of the background of the persons,
2) It should be fair and impartial. In other words it should not give room for nepotism, favoritism etc.,
3) Systematic line of promotion channel should be incorporated
4) It should provide equal opportunities fro promotion in all categories of jobs, departments, and regions of
an organization
5) It should insure open policy in the sense that every eligible employee should be considered for
promotion rather than a closed system which consider only a class of employees
6) It should contain clear cut norms and criteria for judging merit, length or service, potentiality etc.
7) Appropriate authority should be entrusted with the task of making final decision
8) Favoritism should not be taken as a basis for promotion
9) It should contain promotional counseling, encouragement, guidance and follow-up regarding
promotional opportunity, job requirement and acquiring the required skills, knowledge etc. it should
also contain reinforcing the future chances in the mind of rejected candidates and a provision for
challenging the managements decision and action by employee or union within the limits of promotion
policy.
► Types of Promotion
As already noted, a promotion involves an increase in status, responsibilities and pay. But, in certain cases, only the
pay increases, and the other elements remain stagnant. In other cases, the status only increases without a
corresponding increase in pay or responsibilities. Depending on which elements increase and which remain stagnant,
promotions may be classified into the following types:
1) Horizontal Promotion:-
This type of promotion involves an increase in responsibilities and pay, and a change in designation. But the
employee concerned does not transgress the job classification. For example, a lower division clerk is promoted as an
upper division clerk. This type of promotion is referred to as upgrading' the position of an employee.
2) Vertical Promotion:-
This type of promotion results in greater responsibility, prestige and pay, together with a change in the nature of the
job. A promotion is vertical when a canteen employee is promoted to an unskilled job. The concerned employee
naturally transgresses the job classification.
3) Dry Promotions:-
Dry promotions are sometimes given in lieu of increases in remuneration. Designations are different but no change in
responsibilities. The promotee may be given one or two annual increments.
Transfer
► Meaning:-
Transfer is defined as “ a lateral shift causing movement of individuals from one position to
another usually without involving any marked change in duties, responsibility, skills needed or
compensation”
Transfer is also defines as “the moving of an employee from one job to another. It may involve a
promotion, demotion or no change in job status other than moving from one job to another.”
However transfer is viewed as change in assignment in which the employee moves from one job
to another in the same level of hierarchy requiring similar skill involving approximately same level of
responsibility, same status and same level of pay. Thus promotion is upward reassignment of job;
demotion is a downward job reassignment whereas transfer is a latter or horizontal job reassignment.
► Purposes of transfer:-
The transfer in an organization may be due to any one of the following reasons:
(1) Variation in the volume of work: Transfers are necessary due to variation in the volume of work
in .different departments/sections. Shortage of employees or increase in the work in one department due
to different reasons leads to transfer of employees from other departments to that department. Workers
are transferred from surplus department to another department where there is shortage of staff.
(2) Providing training to employees: Transfers are made for providing opportunities to employees for
training and development.
(3) Rectification of poor placement: Transfers are necessary for the rectification of poor placement made in the
initial period. Similarly, transfers are necessary in order to utilize the services of an employee in the best
possible manner.
(4) Satisfying personal needs of employees: Transfers are necessary in order to satisfy the personal needs
(personal difficulties) of the employees. They include family problems, sickness, and education of
children and so on. Such transfers take place especially among female employees. Female employees
want transfer to join their husbands. This leads to transfers. Workers demand transfers when the climate of
the place of work is not suitable to them. Here, transfers are basically for the convenience of employees.
(5) Meeting mutual needs of employees: Transfers are, sometimes, made in order to meet the mutual
needs of two employees. It is a type of mutual exchange and is usually accepted by the management.
(6) Meeting organizational needs: Transfers are necessary in order to meet the organizational needs
developed out of expansion programmers or fluctuations in work requirements or changes in the
organizational structure or dropping of
existing product lines. For example, senior and experienced workers and
supervisors are transferred to new plants/factories in order to manage the work smoothly.
(7) Solution to poor performance: Transfers are, sometimes, made when the worker fails to perform his
job efficiently. He is transferred to a new place or post and is given an opportunity to improve his
performance at a new place. Here, transfer is treated as a better alternative to outright dismissal.
(8) Avoiding fatigue and monotony: Transfers are made for avoiding fatigue and monotony of work in
the case of employees. The productivity of an employee may decline due to monotony of his or her job. To
break this monotony, the employee is transferred.
(9) Giving punishment for negligence: Transfers are sometimes made as a punishment for negligence and
indiscipline on the part of an employee.
(10) Rectification of poor personal relations: The relations between the worker and his superior may not be
smooth and cordial. This may affect the work of the department. One method to solve this problem is to
transfer the worker from that department to some other suitable department. This transfer may be
necessary for removal of the incompatibilities between the worker and his/her boss or between one worker
and the other.
(11) Providing convenience to employees: Transfers are made to help employees to work according to their
convenience. Such transfers are also called shift transfers.
(12) To provide relief and to punish employees: Transfers may be made in order to give relief to the
employees who are overburdened or are working under heavy risks or tension over a long period.
Similarly, on certain occasions transfers are made for indulging in undesirable activities. They may be
made as a disciplinary action for serious mistakes on the part of employees. This practice is widespread
mainly in government offices and police department. Problem employees are transferred to some other
jobs or to remote places.
► Types of Transfers
Broadly speaking, transfers may be classified into three types:
1. Those designed to enhance training and development.
2. Those making possible adjustment to varying volumes of work within the firm.
3. Those designed to remedy the problem of poor placement.
Specifically, transfers may be production, replacement, versatility, shift and remedial.
1) Production Transfers:-
As mentioned earlier, a shortage or surplus of the labour force is common in different departments in a plant or
several plants in an organization. Surplus employees in a department have to be laid off, unless they are transferred
to another department. Transfers affected to avoid such imminent lay-offs are called production transfers.
2) Replacement Transfers:-
Replacement transfers, too, are intended to avoid imminent lay-offs, particularly, of senior employees. A junior
employee may be replaced by a senior employee to avoid laying off the latter. A replacement transfer programmed
is used when all the operations are declining, and is designed to retain long-service employees as long as possible.
3) Versatility Transfers:-
Versatility transfers are effected to make employees versatile and competent hi more than one skill. Clerical
employees in banks, for example, are transferred from one section to another over a period of time so that they
may acquire the necessary skills to attend to the various activities, at the bank. Versatile operations are valuable
assets during rush periods and periods when work is dull. Versatile transfers may be used as a preparation for
production or replacement transfers
4) Shift Transfers:-
Generally speaking, industrial establishments operate more than one shift. Transfers between shifts are
common, such transfers being made mostly on a rotation basis. Transfers may also be affected on special
requests from employees. Some request a transfer to the second shift or the night shift in order to avail the free
time during the day to take up part time jobs, although this is not permitted by law.
5) Remedial Transfers:-
Remedial transfers are affected at the request of employees and are, therefore, called personal transfers.
Remedial transfers take place because the initial placement of an employee may have been faulty or the worker
may not get along with his or her supervisor or with other workers in the department. He or she may be getting
too old to continue in his or her regular job, or the type of job or working conditions may not be well-adapted to his
or her present health or accident record. If the job is repetitive, the worker may stagnate and would benefit by
transfer to a different kind of work.
► Reasons for transfer:
Transfers are of basically of three categories, viz, employee initiated transfer, and company initiated
transfer and public initiated transfers.
1) Employee initiated transfer:-
These transfers are also known as personal transfers. These transfers are primarily in the interest of the
employee and according to his convenience and desire. Further, this transfer can be classified into
temporary and permanent transfers.
a) Temporary transfers: -
The reasons for employee initiated temporary transfers are:
1) Due to ill health or involvement of employee in accidents,
2) Due to family problem like taking care of old parents,
3) Due to other adhoc problem like pursuing higher education,
b) Permanent transfers:-
There are several reasons for employee initiated permanent transfers. Employee prefers transfers:
1) Due to chronic ill health or permanent disablement caused by accident,
2) Due to family problems like taking care of domestic affairs in his native place,
3) With a view to correct his wrong placement. Employee may not be interested with the work or
working condition or environment of his present job and hence may require a transfer,
4) In order to relive him from the monotony or boredom caused due to doing the same job for year
together,
5) To avoid conflict with his superior. If most of the employees working under the same superior
request for a transfer, the situation should be corrected by other means like developing that superior in
interpersonal skills etc. rather than transferring the subordinates,
6) With a view to search for challenging and creative job,
7) With a view to search for job with opportunities for advancement to a higher level job, opportunities
for advancement to a higher level job, opportunities for financial gains etc.
2) Company initiated transfer:-
Transfer is also at the initiative of the company. They can be classified into temporary and permanent.
a) Temporary transfers: reasons for the company initiated temporary transfers are:
1) Due to temporary absenteeism of employees,
2) Due to fluctuation in quality of production and thereby in work load,
3) Due to short vacations.
b) Permanent transfer: - reasons for the company initiated permanent transfer are:
1) Changes in the quality of production, lines of activity, technology, organizational structure as
discussed earlier,
2) To improve the versatity of employees,
3) To improve the employee job satisfaction,
4) To minimize bribe order-processing corruption.
3) Public initiated transfers:-
Public also initiate the transfers generally through the politicians/ government for the following reasons:
1) If an employee’s behavior in the society is against the social norms order-processing if he indulges in
any social evils.
2) If the function of an employee is against the public interest.
The majour drawback of public initiated transfer is the politicalisation of the issue. Some employees
may be transferred frequently because of political victimization and company initiated transfer of some
employees may be stopped due to political favoritism. This drawback is more severe in government
departments and public sector unit.
Benefit of transfer:
Transfers benefit both the employees and the organization. Transfer reduce employee’s monotony,
boredom etc. and increase employees job satisfaction. Further they improves employee’s skills,
knowledge etc. they correct erroneous placement and interpersonal conflicts. Thus, they improve
employee’s morale. Further they prepare the employee to meet the organizational exigencies and meet
the fluctuation in business and organizational requirements. Thus, they enhance human resource
contribution to organizational effectiveness.
Problems of transfer:
Despite these benefit some problems are associated with transfers. They are:
1) Adjustment problem to the employee to the new job, place, environment, superior and colleageoues,
2) Transfer from one place to another cause which inconvenience and cost to the employees and his
family members relating to housing, education to children etc.
3) transfer from one place to another result in loss of Mondays,
4) Company initiated transfer result in reduction in employee contribution
5) Discriminatory transfer affects employees’ morale, job satisfaction, commitment and contribution.
However, these problems can be minimized through formulating a systematic transfer policy.
Transfer policy: organization should specify their policy regarding transfers. Otherwise superiors may
transfer their subordinates arbitrarily if they do not like them. It causes frustration among employees.
Similarly, subordinates may also request fro transfer even for the petty issues. Most of the people may
ask for transfer to risk less and easy job and places. As such organization may find it difficult to manage
the transfer policy. Systematic transfer policy should contain the following items:
1) Specification of circumstances under which an employee will be transferred in the case of company
initiated transfer.
2) Specification of superior who is authorized and responsible to initiate a transfer
3) Jobs from and to which transfers will be made based on the job specification, description and
classification etc.
4) The region order-processing unit of the organization within which transfer will be administrated.
5) Reasons which will be considered for personal transfers their order of priority etc.
6) Reasons for mutual transfer of employees.
7) Norms to decide priority when two order-processing more employees request for transfer like priority
of reasons, seniority.
8) Specification of basis for transfer like job analysis. Merit, length of service.
9) Specification of pay, Allowances, benefit etc. that are to be allowed to the employee in the new job.
10) Other facility to be extended to the transferee like special leave during the period of transfer.
Special allowance for packaging luggage, transportation etc.
Generally, line managers administer the transfers and personnel managers assist the line managers in
this respect.
DemotionThe remaining type of internal mobility is demotion. It is the opposite of promotion. Demotion
is the reassignment of a lower level job to an employee with delegation of responsibility and authority
required to perform that lower level job and normally with lower level pay. Organizations use demotion
less frequently as it affects employee career prospects and morale.
► Need for demotions:
Demotions are necessary for following reasons:
1) Unsuitability of the employee to higher level jobs:
Employees are promoted based on the seniority and past performance. But, some of the employees
promoted on those bases may not meet the job requirements of the higher level job. In most cases
employees are promoted to the level of the incompetence. Some employees selected for higher level
jobs may prove to be incompetent I doing that job. Such employees may be demoted to the lower level
jobs where their skill, knowledge and aptitude suit to the job requirements.
2) Adverse business conditions:
Generally adverse business conditions force the organization to reduce quality of production,
withdrawal of some lines of products, closure of certain department order-processing plants. In addition,
organizations resort to economy drives. Consequently organizations minimize the number of
employees. Junior employees will be retrenched and senior employees will be demoted under such
conditions.
3) New technology and new methods of operation demand new and higher level skills. If the existing
employees do not develop themselves to meet those new requirements, organizations demote them to
the lower level jobs where they are suitable. For example, teacher handling 10TH class were demoted to
the level of 8TH class teachers when the syllabus were revised and the teachers were found misfit even
after training in one school in Andhra Pradesh.
4) Employees are demoted on disciplinary grounds. This is one of the extreme steps and as such
organizations rarely use this measure.
Though the demotion seems to be simple it adversely affects the employee morale. Job satisfaction etc.
as it reduces employee status not only in the organization but also in the society in addition to reduction
in responsibility authority and pay. Hence, there should be a systematic demotion policy.
► Demotion policy:
Organization should clearly specify the demotion policy. Otherwise the superiors demote the
employees according to their whims and fancies. Systematic demotion policy should contain following
items:
1) Specification of circumstances under which an employee will be demoted, like reduction in
operations, indisciplinary cases.
2) Specification of a superior who is authorized and responsible to initiated a demotion
3) Jobs from and to which, demotions will be made and specification of lines order-processing ladders
of demotion.
4) Specification of basis for demotion like length of service, merit order-processing both.
5) It should provide for open policy rather than a closed policy.
6) It should contain clear cut norms for judging merit and length of service.
7) Specification of nature of demotion i.e., whether it is permanent order-processing temporary if it as a
disciplinary action it should also specify the guidelines for determining the seniority of such demoted
employee.
PARTICIPATIVE MANAGEMENT
Meaning of Participative ManagementThe concept of participative management is closely related with the concept of industrial democracy.
Employee’s participation in management means associating workers with the decision-making process.
It is a type of mental & emotional involvement of workers in industrial management. In industrial
democracy, the opinion & suggestions of workers are taken into account while framing policies
particularly those, which are directly connected with them or affect them directly.
The concept of participative management developed in Western countries & has proved to be
successful. As a result, it acquired world-wide recognition & popularity. Participation in an emotional
involvement of employees in the working of their company. It is a process of giving & sharing views,
ideas & information in between the employer & employees through certain channels / mechanism.
Features of Participative Management
1. Higher status to employees: In participative management, employees are given higher status with
power of participate in the decision-making & running of their business enterprise.
2. Provides psychological satisfaction to employees: Participation is an emotional involvement of
employees in the working of their company. As a result, some management decisions are as per the
expectations of employees. This gives psychological satisfaction to employees. They feel that they are
given better status & treatment & not treated merely as wage earners.
3. Special attention to view of employees: The views of employees are given special attention in regard
to following matters:
Social Matters: Hours of work, work rules, welfare facilities, safety, sanitation, health, etc.
Personnel: Recruitment, promotions & transfers, settlement of grievances, work distribution, holidays,
etc.
Economic: Automation, lay-offs, production schedule, production methods, etc.
4. Universally recognized concept: It is introduced in different countries in different forms.
5. Participation is indirect: Employees participation in the management is indirect i.e. through the
representatives of employees. E.g. Works comities, etc.
6. Brings employees & management closure: It facilitates meaningful communication between
management & employees, which ensures cordial industrial relations.
7. Beneficial to both parties: The participative management will be beneficial to both parties only when
company’s management is professional or progressive.
8. Revolutionary concept: It is a powerful tool, which can make industrial democracy a reality.
9. Concept has limitations: Employees will not be allowed to participate in financial & other decisions of
the management. It is restricted to those aspects of management where employees are directly involved.
Objectives or Purposes of Participative Management:
To create uniform approach of employer & workers. To establish cordial industrial relation. To raise industrial productivity. To workers in confidence. To introduce industrial democracy.
Needs of Participative Management:1) Giving higher status & psychological satisfaction to workers: Employees are important & that their
views are being taken into account while taking decisions on the matters relating to them. Such
participation satisfies the urge of self-expressions. Even for maturity & personality development of
workers.
2) Cordial labour-management relations: The participation of the workers in management can act as an
effective means for preventing industrial disputes. So there needs to establish cordial labour-
management relations through mutual understanding.
3) Creating uniform approach of employer & workers: This avoids possible disputes.
4) Raising industrial production: As workers generally take interest in their work when they are given
due importance, respect & opportunity of self-expression.
5) Creating platform for direct negotiations: It is needed in order to create a platform for direct
negotiations & collective decisions.
6) Creating responsible approach among workers: To make workers more responsible, disciplined &
constructive in their approach in relation to the activities of the company.
7) Encouraging communication between employer & workers: It enables management to understand
the workers point of view at the time of decision-making. It removes suspicion among workers.
8) Raising employee’s morale: For raising the morale of employees & in order to use their knowledge,
skills & talents for the benefit of the company.
9) Introducing industrial democracy: Workers participation acts as a means for achieving the dream of
industrial democracy. They are consulted as equal partners in the production process. This leads to
industrial democracy, which is one useful supplement of political democracy.
Methods of participative managementParticipative management is possible by creating suitable agencies, forums or platforms through which
effective communication between workers and management will be possible and joint decision will be
arrived at the methods of Participative management are different alternative. Employees and workers
can select any one of the method popular and also purposeful. This is the nature as the method selected
is not important but the result oriented Participative is important. The method used is means while
effective participation is the end.
1. Works committees:
The industrial disputes act 1947 provided for the setting up of a work committees consisting of
representative of management and employees in every undertaking employee 100 or more employees.
The committees are for the removing the causes of friction between employers and the workers in the
day to day working in factory level. This joint consultative committee meets frequently for discussion
on common problem before workers and the company. After discussion, joint decisions are taken and
such decisions are binding on both the parties. Matters like wage payment, bonus, training, discipline,
welfare facility, working conditions etc. are discussed in such meetings.
Workers committees are extremely popular and effective in France and England. In India, there is
statutory provision for the establishment of worker committees under the industrial disputes act, 1947.
Such committees are constituted in large number of industrial unit. Meeting of such committees are also
arranged. However, they are neither effective nor popular in India. As a result, participative
management through this mechanism is not effective or purposeful in India. Many managers feel that
such committees have only a nuisance value. In addition to works committee, many other committees
are formed. However, they are not effective as agencies of participative management.
2. Joint management councils (JMCs):
These council are similar to works committees with equal representation to employer and employees.
Workers express their views, problems such as welfare facility; discipline, training, removal of workers,
common grievances, holidays, rationalization, expansion programmes, etc. are discussed in the
meetings of JMCs. Such joint consultative committees exist in UK and Sweden. In India, participative
management is mainly through joint management councils.
JMCs are in addition to works committees which are statutory in nature. Unfortunately, the
JMCs are not operation effectively in India due to limited interest and initiative in their functioning by
managements and workers. They are not used for exchange of information, views, suggestions, etc. but
for quarrels and heated exchanges between the representatives of management and workers. Absence of
cordial industrial relations in spite of JMCs indicates their overall failure. JMCs are mostly consultative
bodies and this type of workers participation is of loose type. The suggestions put forward by
representatives are not binding on the management. Such councils serve no useful purpose. They only
provide platform for discussions.
3. Co-partnership ( Participation through ownership) :
In co-partnership, workers are converted into shareholders of the company (by offering equity shares to
them) and are allowed to participate in the management like other shareholders. The company may give
financial assistance to workers to purchase equity shares. They can elect their representatives on the
Board of Directors. Workers are also allowed to attend meetings of the company and participate in the
discussions. Voting rights are also given to employees.
In this method, employees participate in the management as co-owners i.e. shareholders. This
gives them an opportunity to participate in the decision making and policy framing of their company at
the highest level. Co-partnership is also a method for introducing industrial democracy. Here, workers
are given higher status. They work in two different capacities as workers and as co-owners.
In India, the experiment of co-partnership is not popular. Workers show limited interest in
purchasing shares of their company as and when offered. Very few workers purchase the shares and join
the company as members. Naturally, the participation of workers in the management is weak and
ineffective.
Many companies in India offer their shares to employees but the response of the employees is
not encouraging. This suggests that co-partnership as a method of participative management is not
effective / popular in India.
4. Employee Directors:
Here, two or three representatives of workers are taken on the Board of Directors of the company. The
employee directors / workers directors are elected by workers and they express the views of workers in
the meetings of the Board. Here, employee directors act as connecting link between workers and top
level management. Such participation ensures cordial industrial relations. The representative of workers
can put the views of workers before the directors and can also safeguard the interests of workers. As a
result, the personnel policies will be fair and favourable to workers. Unfavourable decisions to workers
will be avoided and better treatment will be ensured to them.
This mechanism of workers participation is now used extensively in the public sector
undertaking in India as per the initiative taken by the government. Workers directors are now appointed
in companies like Hindustan Antibiotics Ltd., and HMT Ltd. This scheme also exists in the case of
nationalized banks, co-operative banks. DCM, Tatas and some more companies from the private sector.
This method of participative management has many limitations. Representation on the Board
does not substantially enhance the participation of workers in the management of the company. In
addition, the worker director may not be able to play a constructive role due to limited knowledge and
experience. The worker director may enjoy the status on par with other directors but will feel inferior to
others due to his shortcomings. His contribution may not be satisfactory for the workers and also for the
management. Finally, Workers representatives on the Board are minority. They may not be able to
protect the interests of workers as decisions are taken on the basis of majority vote.
5. Suggestion Programme / Scheme:
Under suggestion programme, workers are asked to give their suggestion to the management on various
administrative and other matters such as machine utilization, waste management, energy conservation
and safety measures. Their suggestions are considered by a joint committee representing workers, heads
of departments and technical experts. The suggestions which are suitable are accepted. Such
suggestions are for improvement in the existing organizational setup. Suitable suggestions relating to
production activities, cost control, quality improvement, working conditions, etc. are promptly accepted
and executed. In addition, rewards are also given to those who make constructive suggestions. For
collecting suggestions, suggestion boxes are kept in all departments.
Suggestion scheme of participative management encourages workers to think (individually or
collectively) and participate in raising the efficiency of the organization. In India, Tatas, DCM and other
industrial groups have introduced suggestion scheme. On May occasions, workers directly connected
with work give creative and practical suggestions which are useful to the management in different ways.
They may raise productivity or reduce the cost of production. Suggestion scheme will give good results
if workers are encouraged to think and make concrete suggestions. This idea of participative
management is now put into operation through quality circles which are popular in Japan and now
function in may Indian Companies.
6. Workers co-partnership / Auto Management:
In this extreme form of labour participation, workers take over the industrial unit and manage it
completely on co operative basis. Naturally, the entire management is by the workers themselves. This
method is called “Auto-management”. One example in India under this category is that of Kamani
Tubes Limited. This leading unit was closed down in 1985 due to sickness. Workers suffered heavy
loss. Now, workers have contributed to its capital and have become its owners. The Kamani
Employees’ Union took initiative in starting this unit with the co-operation of financial institution form
6th April, 1989. The Supreme Court also allowed the workers to run the unit. This is the first example of
participative management in the manufacturing sector in India. It is one significant constructive
development in the field of trade unionism in India. The Government of Maharashtra has taken a
decision to hand over sick industrial units to workers for regular functioning on co-operative basis.
7. Quality Circle:
Quality circle consist of a small number of employees who comes together on voluntary basis with one
item on the agenda i.e. to improve quality or to raise productivity or to avoid wastages, etc. this form of
participation is voluntary. As a practice, meetings are held once in the week lasting for about as hour.
Member of quality circle is given free hand to solve problem related to the quality, if they fail they can
request to management to depute an expert to sort out the problem. This circle highly proved to be
highly successful because the problem is solved by member themselves through two way
communication and brainstorming seriously and studies them effectively and promptly. The suggestion
should be implemented, if found suitable.
8. Collective Bargaining:
Collective bargaining is the process in which the representative of the employer and employer and
employees meet together to negotiate a contract government both the parties. It results into signing an
agreement thereby restricting each party that it cannot take unilateral decision harming the interest of
the other party. This sort of joint meeting can bring fruits proved barraging is done in the right spirit
with positive attitude. Participation brings both the parties together and improves the understanding thus
making the way for the two way dialogue to sort out the problems.
Collective bargaining is a better alternative to strike and industrial disputes. It is peaceful and
democratic method for solving the problem and demands for workers through direct negotiation
between the representative of workers and management. A strong trade union can protect the interest of
worker can more effectively through direct negotiation and consultation rather than through disputes
and strike which are normally harmful to workers, employer and society at large.
9. Empowered Team:
When the authority is delegated to the employees its called empowering. In this sense, employment
takes place when employees enjoy power and they experience a sense of ownership and control over the
jobs. Employees when empowered, understanding that the job belong to them. As they are competent to
speak on the job, they feel responsible. This happens to motivate them and they go out of the way to
work. Employees become quality conscious and contribute to quality improvement in product and
services. Information is shared at every level leading to improved performance.
10. Job enlargement and job evaluation:
Job enlargement is the process of increasing the scope of the job by adding more tasks to it. As tasks are
related, employees to get the opportunity to make grater use of their mental and physical skills.
Job enrichment is designing a job in such a way that it provide the employee grater autonomy
for planning and control his own performance. Job enrichment makes the jobs more interesting and
challenging.
The main objective of job enrichment and job enlargement is to force the worker from boredom
which occurs because of excessive specialization. Both the job enrichment and job enlargement are
considering method of participative management as they provide freedom to each employee to use his
judgment. This freedom is course limited and restricted.
The basis purpose of above noted scheme of participative management is to associate the worker with
the decision-making process. Difference methods are use in the different countries as per the situation
available. The method used for workers participation is not impotent. Workers participation in
management may be voluntary or statutory. Voluntary participation is always better and more effective.
Statutory labour participation is not effective as it is mechanical and also imposed on both the parties by
force.
PRE-REQUISITES OF PARTICIPATIVE MANAGEMENT
1. Strong trade unions:
Existing of strong trade with creative and enlightened leadership is necessary for participative
management. Workers and their union must have genuine desire and interest in such participation. They
also need information, proper training and ability to participate in the discussions in an effective
manner. Workers participation will be ineffective if these pre-request are absent. Politicisation and
multiplicity of trade union defeat the very purpose of participative management
2. Favourable attitude of management:
The attitude of the management should be progressive and democratic. He must be mentally willing to
associate with his workers on equal level and discus the problem freely and frankly with them. The
conservative and autocratic outlook of management will defeat participative management in practice.
Management have to accept due importance of employees and their status as their partners and not
merely as wage earners. Management should not feel that its position it’s threatened by such
participation.
3. Mutual trust and confidence:
Existence of atmosphere of mutual trust and confidence is the sine quo non of participative
management. Fair participation is not possible when the mutual confidence is absent. Both parties are
agree to stay together in an atmosphere of understanding. This facilitates participative management in
practice.
4. Genuine urge for co-operation:
Genuine desire on the part of employer and worker to discuss, understand the views and come to certain
acceptable decision is necessary for success of participative management. This must be supplemented
by desire to genuine desire to share authority and responsibility in mutually agreed to sphere. The
outlook of employer and worker must change and become favourable for mutual trust and
understanding.
5. Peaceful atmosphere:
Labour management relation should be a cardinal or at least there should be a no tension in the relation.
Active participation of workers in management is possible under such peaceful atmosphere. It is just not
possible when there are disputes and strike in the industrial unit.
6. Clear understanding of objective:
Employers and workers must understand clear the objective of such participation. The objective must be
clearly define and complementary in characters. Employer should not take such participation as an
imposed liability and worker should not use it merely for expressing there grievances and demands.
Participation should be for achieve the objective which are accepted by both the parties and also
beneficial for both the parties.
7. Meaningful sharing of information:
Worker representative should have adequate technical, financial and managerial knowledge and
information. This will make labour participation effectively. For this, a suitable training needs to be
given to the workers representatives. Management should also provide all relevant information to
employees for their consideration. There must be a free flow of information and communication
between management and worker. This avoids suspicion and distrust and ensures purposeful
participative management.
8. Participation of supervisory staff:
Supervisory staff should be given a place on the join management council. Similarly, subject
earmarked for collective bargaining must be kept outside for the joint consultation. Participative
management will be effective if the entire labour force covered by such participation. In addition, the
representative of the worker must be drawn from themselves. The participation of trade union leaders
should be discourage as the approach of such leaders may not be positive or fair. Real representative of
workers can put forward the views of all workers with confidence.
9. Education and training of workers:
Workers education and training should be make significant contribution to meaningful participative
management. Trade union and government should provide such education and training to the workers.
This will make the concept of participative management among popular among the workers and will
ensure its success.
10. Voluntary character desirable:
Participative management should not be made compulsory but should be kept voluntary in character. It
should not be government sponsored. It will not work fruitfully if it is imposed on the both the parties.
Thus voluntary condition character is one pre-condition for the success of participative management.
The need of such participation must be felt by both the parties and they should introduce the scheme of
participation on voluntary basis.
Importance of participative management:
The importance of participative management is universally accepted and efforts are being made
for introducing such participation through suitable agencies and methods. Participative management has
wider socio-economic importance as it given various advantages to workers, employers and society at
large. Such participation gives higher status to workers and enable them to think and express their view
on the working of their company. Industrial peace and cordial industrial relation are also established
through participative management. In addition, workers’ participation brings industrial democracy in
reality. Participative management is important it satisfies the psychological needs of self expression of
workers. Even the process of decision making is made democratic through the workers participation. It
bring human element in industrial management.
Participative management introduces a new set of volume for the workers and employers in
which power is to be replaced by persuasion and compulsion by co-operation. Employee participation is
useful for raising industrial production and productivity. It helps consumer in an indirect manner. The
national economy also gets certain benefits when industrial peace and harmony exits over a long period.
In brief, the concept of participative management is important because of economics, social and human
values connected with it.
The ILO has given morale support to employee’s participation and has advocated its adoption in
all countries. Efforts are being made in all countries in this regards. In the countries of west, this
experiment is reasonable successful while in developing countries including India, the progress is not
satisfactory even when consultative machinery exists in many countries.
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