PROJECT

“HUMAN RESOURCE MANAGEMENT”

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 TABLE OF CONTENTS

SL PARTICULARS PAGE
NO. NO.
1 INTODUCTION OF HUMAN RESOURCES 4
MANAGEMENT
2 THE SCOPE OF HRM 8

3 FUNCTIONS OF MANAGEMENT 28

4 LEVELS OF MANAGEMENT 31

5 PLANNING 33

6 PLANNING PROCESS 36

7 TYPES OF PLANS 39

8 PLANNING TYPES 43

9 IMPORTANCE OF PLANNING 47

10 LIMITATION OF PLANNING 50

11 CASE STUDY 54

12 CASE ANALYSIS 58
This Photo by Unknown Author is licensed under CC BY-NC-ND
13 CONCLUSION 61

INTRODUCTION OF HUMAN RESOURCES MANAGEMENT

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Human resource management is a function in organizations designed to maximize employee performance
in Service of their employer’s strategic objectives . HR is primarily concerned with how people are
managed within organizations, focusing on policies and systems. HR departments and units in
organizations are typically responsible for a number of activities, including employee recruitment,
training and development, Performance appraisal, and rewarding. HR is also concerned with industrial
relations, that is, the balancing of organizational practices with regulations arising from collective
bargaining and governmental laws.

HR is a product of the human relations movement of the early 20 thcentury ,when researchers Began
documenting ways of creating business value through the strategic management of the workforce . the
function Was initially dominated by transactional work, such as payroll and benefits administration, but
due to Globalization, company consolidation , technological advancement, and further research, HR now
focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning,
industrial and labour relations, and diversity and inclusion.

In start-up companies, HR’s duties may be performed by trained professionals. In larger companies, an
entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks
and functional leadership engaging in strategic decision making across the business . To train
practitioners for the profession, institutions of higher education, professional associations , and
companies themselves have created programs of study dedicated explicitly to the duties of the function.

Academic and practitioner organizations likewise seek to engage and further the field of HR, as
evidenced by several field-specific publications. HR is also a field of research study that is popular within
the fields of management and industrial/organizational psychology, with research articles appearing in a
number of academic journals, including those mentioned later in this article.

In the current global work environment, most companies focus on lowering employee turnover and
retaining the talent and knowledge held by their workforce. New hiring not only entails a high cost but
also increases the risk of the newcomer not being able to replace the person who was working in that
position before. HR departments also strive to offer benefits that will appeal to workers , thus recording
the risk of losing knowledge.

CONCEPT OF HUMAN RESOURCE MANAGEMENT

Human resource management is a process of bringing people and organizations together so that the goals
of each other are met. The role of HR manager is shifting from that of a protector and screener to the role

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of a planner and change agent. Personnel directors are the new corporate heroes. The name of the game
today in business is personnel . Nowadays it is not possible to show a good financial or operating report
unless your personnel relations are in order.

Over the years , highly skilled and knowledge-based jobs are increasing while low skilled jobs are
decreasing . This calls for future skill mapping through proper HRM initiatives.

Indian organizations are also witnessing a change in systems, management cultures and philosophy due to
the global alignment to Indian organizations . there is a need for multi skill development . Role of HRM is
becoming all the more important.

Some of the recent trends that are being observed are as follows:

The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric
organizations. Organizations now need to prepare themselves in order to address people centred issues
with commitment from the top management, with renewed thrust on HR issues, more particularly on
training .

Charles Handy also advocated future organizational models like shamrock, federal and triple I. such
organizational models also refocus on people centric issues and call for redefining the future role of HR
professionals.

To leapfrog ahead of competition in this world of uncertainty, organisations have introduced six -sigma
uses rigorous analytical tools with leadership from the top and develops a method for sustainable
improvement. These practices improve organizational values and helps in creating defect free product or
services at minimum cost.

HRM is involved in providing human dignity to the employees taking into account their capacity,
potentially, talents, achievement, motivation, skill, commitment, great abilities, and so on. So, that their
personalities are recognized as valuable human beings. If an organization can trust, depend and draw from
their bank account on the strength of their capital assets, they can trust, depend and draw more on their
committed, talented, dedicated and capable people. This is what the HRM is involved in every business,
managerial activity or introduction.

The principal component of an organization is its human resource or ‘people at work’. According to Leon
C. Megginson from the national point of view Human Resources as, “the knowledge, skills, creative
abilities, talents and aptitudes obtained in the population; whereas from the . view point of the individual

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enterprise, they represent the total of inherent abilities, acquired knowledge and skills as exemplified in
the talents and aptitudes of its employees.”

Human resource has a paramount importance in the success of any organization because most of the
problems in organizational setting are human and social rather than physical, technical or economical
failure. In the words of Oliver Shelden, “No industry can be rendered efficient so long as the basic fact
remains unrecognized that it is principally human.”

Human Resources Management is concerned with the “people” dimension in management. Since every
organization is made up of people acquiring their services, developing their skills, motivating them to
high level of performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieve organizational objectives. This is true regardless of the type of
organization, government, business, education, health, recreation or social action. Getting and keeping
good people is critical to the success of every organization, whether profit or non-profit, public or private.

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THE SCOPE OF HRM
Human
Resources
Planning
Compensation
Job Analysis
Planning and
Remuneration
Design

Performance Recruitment
Appraisal and Selection

Orientation
Training and
and
Development
Induction

The scope of HRM is very wide . it consists of all the functions that come under the banner of human
resources management . the different functions are follows-

1. Human resources planning

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 It is the process by

which a company identifies how many positions are vacant and whether the company has
excess staff or shortage of staff and subsequently deals with this need of excess or shortage .

a) Analyze Objectives
Aligning HR practices to strategic objectives is fundamental to an effective human
resources plan. In a perfect world, human resources management works hand in
hand with other top managers so there is a clear understanding of ultimate goals,
and then they focus on the human capital needed to meet them. It’s vital that the
human resources plan encompasses every part of the company from product
development to sales and expansion plans.

b) Inventory Current Human Resources

If you have one, use the updated human resource information storage (HRIS) system
to analyze the number of people you currently employ, along with their skills,
performance, and potential. Once you determine which jobs need to be filled based
on your forecast, you can then decide whether you have enough internal candidates
to fill the job requirements or if you need to go to external sources or strategies to
add staff.

c) Forecast The Demand and The Supply of The Employees

Forecasting human resource demand involves estimating the number of future

employees of the right quality and quantity, with a view to the company’s strategic
plan over a given period of time. Forecasting demand is the most crucial part of

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human resource planning and the most daunting. It’s challenging for many reasons,
and even more so because there are no absolute answers on how to accomplish it.
There are two categories of forecasting methods: quantitative and qualitative. You
can use both methods to track the work performance of the workforce as a whole,
individuals, or business units. Qualitative reports contain anecdotal observations,
while quantitative data is statistical or more data-driven. Select the methods that
make the most sense in your environment. For example, in a non-manufacturing

company, the work-study method which calculates the necessary working hours to
produce units may not make sense. By gathering both quantitative and qualitative
information, you can identify issues that are impacting your business's productivity,
and then develop a well-rounded -forecast to increase the company's efficiency, ensure
you’re not over or understaffed, and understand future needs.

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d) Estimate Gaps
With your forecast completed, you’ll have an understanding of future needs and if
you will need to fill them with external workers hired full-time, part-time, or as
contractors. If you have the right number of employees that don’t have the right
skills, you can use training and development to upgrade employee skills to fill the
gaps, or you may need to deploy workers in another role.

e) Formulate plan
The human resource plan relies on identifying deficits or surplus in the company.
You’ll need to determine if you need to begin recruiting or training, transition, or
develop voluntary retirement processes and redeployment in case of a surplus.
Include priorities and critical planning issues in your plan.

f) Implement Plan
This is the most challenging aspect of any human resources plan. The organization
often invests time and money on plans that are shelved and not utilized. Company
executives need to grant buy-in, embrace the plan, and bring the organization on
board. Overcome any potential employee resistance to the process by rolling in one
aspect of the plan at a time to help employees acclimate to changes.

(i) Staffing or Recruiting Plan

Recruitment is one of the top responsibilities of any human resources team.
Searching for, vetting, and finding the right talent to join your team are all crucial
steps to ensure the success of your organization. Having a staffing plan in place
makes your team aware of the available recruitment sources, hiring goals, and
budget. Use this staffing plan to organize all staffing details with columns for

budgets, hiring goals, status, and comments.

g) Monitor Control and Feedback

Strictly monitoring progress helps identify sticking points in your plan and helps you
avoid making changes too quickly. It’s essential to compare actions to how the plan is
being implemented to ensure fidelity. The human resource plan is an evergreen document
that takes changing circumstances into account. Ongoing measurement, reporting, and

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 continuous improvement efforts will keep the company moving towards its stated
strategic goals.

2. Job Analysis
Job analysis can be defined as the process of noticing and regulating in detail the particular job
duties and requirements and the relative importance of these duties for a given job.
Job analysis design is a process of designing jobs where evaluations are made regarding the data
collected on a job . It gives an elaborate description about each and every job in the company.

3. Recruitment and Selection

Recruitment can be defined as the process of finding out prospective candidates for filling actual
or projected vacancies in an organisation. Recruitment enables the organisation to obtain the
number and types of individuals required for its continuous working. Normally, it is an effort to
gain the interest of the candidates looking for jobs, find the candidates interested in the job and
create a group of potential employees, with the help of which the management can choose the
suitable person for the job.

According to dale Yoder ,”Recruitment is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that manpower in
adequate numbers to facilitate effective selection of an efficient working force”.

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 Recruitment Methods and Sources

E- RECRUITMENT
The buzzword and the latest trends in recruitment is the E-Recruitment. Also known as
“Online Recruitment”, it is the use of technology of the web-based tools to assist the recruitment process.
The tool can be either a job website like naukiri.com , the organisation’s corporate web site or its own
internet. The internet penetration in India is
increasing and has tremendous potential. According to a study by NASSCOM- “jobs is among the top
reasons why new users will come on to the internet , besides E-mail”. There are more than 18 million
resumes’ floating online across the world.

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 SELECTION

Selection refers to a process in which individuals are picked-up from

the pool of job applicants possessing the required knowledge and skills
for the job to be performed in an organisation. Selection is a process
which includes various phases such as exploring the applicants in
order to check whether they are suitable for the job or not, picking -up
the right ones from the pool of applicants and eliminating the rests. Therefore, selection can be
regarded as a negative process in its application., as its main aim nis to reject as many unsuitable
individuals as possible; so as to get the right and appropriate candidates for the organisation.

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After the employees are selected, an induction or orientation program is organized. the employees are
updated about the background of the company as well as culture, values, and work ethics of the company
and they are also introduced to the other employees.

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5. Training and Development
Employees have to undergo a training program, which assists them to put up a better
performance on the job. Sometimes, training is also conducted for currently working experienced

staff so as to help them improve their skills further. This is known as refresher training.

6. Performance Appraisal

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Performance appraisal is a tool which is used to evaluate the employees’ performance at the
workplace . it generally includes qualitative and quantitative dimensions of employees’ job
performance. In this context, performance is defined as the level of work achievement. It
generally represents how successfully an individual stratifies the job requirements. Performance
is constantly evaluated on the basis of outcomes .

According to MONDAY et al., “Performance appraisal is a system of review and evaluation of

an individual’s (or team’s) performance.

Process of Performance Appraisal

Performance appraisal includes various steps.

Establish Performance Standards with Employees

Muitually set Measurable Goals

Measure Actual Performance

Compare Actual Performance with Standards

Discuss the Appraisal with the Employee

Take Corrective Actions

a. Establish Performance Standards with Employees:

The process of performance appraisal starts with the formation of performance

standards, according to organisational planned goals. These standards should be
derived from the organisational strategic decision, particularly from job analysis and
job description. These standards should be easy to understand so that they can be
easily comprehended and evaluated . Generally, these standards are expressed with

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 confusing remarks that one understands little such as “a full day work “or “a good
job”. It is difficult to understand what is a full day work or a good job . A manager
should have a clear- cut picture in his mind about what he expects from his
employees. Thus, he would be able to convey these expectations to the employees in
the future and evaluate their performance as per these standards.

b. Mutually set measurable goals: After the formation of standards, the most important
thing is to convey the expectations so that an employee would not waste his time in
presuming what is being expected from him . Many jobs have ambiguous
performance standards and `

c. Measure Actual Performance: Measurement of actual performance is the

next phase of the appraisal process. To measure actual performance, it is
necessary to collect information about it. Managers should be aware of what is to
be measured and how. There are four common sources of information which are
often exercised by the managers to evaluate actual performance. These sources
are: personal observations, statistical reports, oral reports and written reports.
Every source has its own benefits and limitations. However. a group of these
sources will boost the number of input sources and prospects of collecting
trustworthy information. What is being measured is more difficult to evaluate as
compared to how it is being measured. Selecting
wrong criteria may result in severe outcomes. What is to be measured
indicates, what people have to achieve in order to excel in the organisation.

d. Compare Actual Performance with Standards:

Next step involves comparison of standards with actual performance. This step
includes identification of fluctuations between the standard performance and the
actual performance in order to proceed further

e. Discuss the Appraisal with the Employee: During this phase,

the appraisal discusses the appraisal with the employee. For a manager, the
most difficult job is to provide a precise appraisal to the employee. The
review of performance appraisal affects employee's self-esteem and most
Importantly his performance. Obviously, providing positive feedback is
comparatively easier for both the appraiser and the employee than
providing negative feedback. The appraisal may have both positive and
negative outcomes.

f. Take Corrective Actions: The last phase of appraisal process

involves taking remedial actions wherever needed. These actions could be
immediate or basic. Immediate actions mostly deal with the symptoms. These

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 actions frequently regarded as 'putting out fires' as they deal with urgent
problems. they rectify the Problems immediately and smoothens the flow of
work. On the other hand, basic actions deal with causes of the problem. These
actions cover the reasons of fluctuation and also aim at controlling the
differences permanently. They diagnose how and why the performance is
fluctuated. In some cases, appraisers may give a reason that due to the
shortage of time they did not take basic remedial actions.
Hence, appraisers feel satisfied in putting out fires. Efficient managers know that
spending a little time in evaluating the problem today, may save their time in
solving the problem tomorrow.

Techniques of Performance Appraisal

Several techniques/methods of performance appraisal have been established
achieve the organisational goals. Organisational culture, its Objectives products,
technology. etc., affect the selection of methods to be used .Technique that are
mostly used m organisations are as follows:

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 Techinques of Performance Appraisal

Traditional/past-Oriented Modern/Future-Oriented
Techniques Techniques
Graphic Rating Scales Behaviourally Anchored Rating Scales (BARS)

Straight Ranking Method Management by Objectives (MBO)

Paired Comparison Method Psychological Appraisals
Critical Incident Method Group Appraisal Method Human Resource Accounting
Checklist Method 360- Degree Performance Appraisal
Forced Choice Method Assessment Centres
Forced Distribution Method

Field Review Method

Traditional/Past-Oriented Methods of Appraisal

Traditional methods of performance appraisal focus on past performance. The aim at

giving feedback to the employees pertaining to their activities which can be utilised for
attaining bigger victory in the near future. Traditional appraisal methods are as follows:

1. Graphic Rating Scales (GRS): A Graphic Rating Scale (GRS)

is also called 'linear or simple rating scale'. It provides a list to appraisers
including various characteristics necessary for effective performance like
co-operation flexibility, readiness, motivation, etc. A five- or seven-point
graphic rating scale includes each characteristic. Numbers and/or
expressive words or phrases indicating out the performance level are
pointed in the rating scale. The middle part of the rating scale is more
often filled with words like "average", "adequate satisfactory", or "meets
standards".

2. Straight Ranking Method: This is the most traditional and

easiest method of performance appraisal. By this method, every
employee is provided with a rank starting from 'best' to 'worst'
considering his overall performance. Simplicity is the key quality of this

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 method. It involves lesser administration and tends to provide a
satisfactory solution to small enterprises having fewer employees. Due
to rank assignment, this method encounters various appraisal failures,
specifically central tendency and human errors.

3. Paired Comparison Method: This method came into existence

in continuation to the straight ranking method, with a view to offer an
organised process for evaluating relative ranks of the employees. It is
also known as "man-to-man appraisal". It is a useful method in which
the employee who is supposed to be appraised, is compared with
others, in a combination, one at a time. As many times, the person is
compared with another one. it is counted on paper The appraiser must
set a standard as a basis for appraising the employees.

4. Critical Incident Method

This method focuses on diagnosing those particular happenings in which
the employee has performed really good or those which needs further
enhancement. It is a method asking for a narration of happenings, but
does not believe in providing ranks or ratings. It is sometimes combined
with a rating type system

5. Group Appraisal Method: It is usually seen that some

appraisers use very high level of standards for appraising their
subordinates'. However, it is not necessary to assess them as per
such high standards. It is generally seen that where the appraiser
himself is excellent, he anticipates his subordinates also to be at the
same level. To overcome this problem, a group appraisal method is
developed. This method considers the performance evaluation by a
group of people holding information about the job and performance
standards.

6. checklist Method: Under this method, rater does not assess the
performance of the employee. Rather, he prepares a report about his

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 performance and final scores are given by the HR department. A
chain of questions is given pertaining to the employee's actions. For
the purpose of pointing out whether the answer to a question
regarding an employee is assertive or not, the rater examines it. It is
possible that some questions may be given more or equal weightage.
Normally, the questions are framed in 'yes/no' style.

7. Forced Choice Method: This method has an objective of

rectifying the biasness of the rater to assign constantly high or low
ratings to every employee. It utilises some sets of combined
phrases or statements, where two can be positive and two can be
negative. The rater is requested to point out the most and least
narrative four phrases of a certain employee. In fact, the phrases
are prepared in such a manner that the rater cannot simply
evaluate as to which phrase is applicable to the most efficient
employee

8. Forced Distribution Method (Forced Ranking

Method): Leniency is one of the major errors in rating due to
which many employees are given high ratings. This method aims to
remove the problems by persuading the rater to evenly distribute
the rates on the rating scale. This method relies on the assumption
that the level of employee's performance validates to a normal
distribution forming a bell-shaped curve.

9. Field Review Method: In this method, appraisee is assessed

by someone external to his own department either from the
commercial office or from the HR department. External evaluator
checks the employee's past records and takes an interview of the
person and his superior. This method is mostly used to take
decisions regarding promotions at the executive level.

Modern/Future-Oriented Methods of Appraisal

Modern methods of performance appraisal focus on future performance. These

methods evaluate employees' capabilities for achievement and define standards for
both short- and long-term performance. Various modern methods of performance
appraisal are as follows:

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1. Behaviourally Anchored Rating Scales (BARS): BARS are
Often known as behavioural expectation scale. The rating points on this
rating scale are established by the statements of efficient or inefficient
behaviours. They are termed as behaviourally anchored because the scale
shows a series of narrative behavioural statements, ranging from worst to
best. A rater must point out which behaviour explains an employee's
performance in the best possible manner.

2. Management by Objectives (MBO): MBO includes collective

goal-setting in which both the superiors and subordinates come together and
establish goals. Subordinates are provided an opportunity to take part in goal-
setting for their relevant work areas. Thus, it minimises ambiguity and maximises
job precision. One more significant aspect of MBO is the collective evaluation.
While giving feedback about performance, both the superiors and subordinates
are concerned, in order to discuss upon the issues and barriers, which took place
in performing their duties.

3. Psychological Appraisals: Big organisations generally hire full-

time industrial psychologists. When psychologists are asked to evaluate, they
evaluate a person's future capability instead of his past performance. The
appraisal usually includes psychological tests, in-depth interviews,
conversation with supervisors and a review of other assessments. Afterwards,
the psychologists complete the analysis of the employee's logical, emotional,
motivational and other job-related characteristics that determine individual
capability. This helps in forecasting the future performance of the employee.

4. Human Resource Accounting: This method adds up some monetary

value to the workforce of an organisation. This process includes the assessment of
goodwill of an organisation. It can be enhanced by establishing a system in order
to carry out regular assessment of particular variables. These variables are
categorised in two forms, i.e., key variables and intervening variables. The key
variables are the strategies, rules and regulations of an organisation, including its
leadership policies, abilities and behaviour of an employee, etc• Intervening
variables include commitments, attitudes, encouragement* interpersonal relations,
communication and decision-making. This method is not a well-known method of
performance assessment. Nevertheless, this method is mostly used for analysing
the group performance, instead of individual performance.

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 5. 360-Degree Performance Appraisal: It is used to evaluate
the performance of employees and managers based on the feedback
obtained from the individuals who work along with them. It can be
taken as an organised collection and review of performance data of a
person or a group extracted from a number of stakeholders. Through
this method, the employees hold the chance to review the manager,
which is not possible in traditional performance appraisals. It is an
objective and realistic method, which is free from biasness.

6. Assessment Centres: Assessment centres are mainly used for the

assessment 6) of managerial or administrative capability. It is a central
point where managers may appear jointly to contribute in job-related
exercises assessed by trained evaluators. The basic purpose is to assess
managers periodically, says one to three days, with the help of
observation and evaluation of their actions across the cycle of chosen
exercises or work samples. Assesses are asked to take part in
workgroups (without leaders), in-basket exercises, computer
simulations, role-playing and other parallel activities which require the
same qualities for successful performance as required in the actual
work. Once recording of observations is completed, the raters gather to
discuss these observations and take final decisions on the basis of these
discussions.

Importance of Performance Appraisal

Importance of performance appraisal is as follows:

1) Performance Enhancement: Performance appraisal helps organisation to

enhance the performance of employees by work planning, skill recognition and
development of capabilities.

2) Compensation Adjustment: Performance appraisal is generally linked to

compensation. Efficient employees are rewarded to stimulate them for better
performance. On the other hand, ineffective employees are provided less pay due
to poor performance.

3) Taking Placement Decisions: Performance appraisal is a useful device

which helps in taking important decisions related to employee placements like
transfer, demotion, promotion, re-assignment, re-location, etc. Hence, it is

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 considered as the most efficient device for taking decisions related to employee
placements.

4) Career Planning and Development: Performance appraisal offers

accurate information related to performance and capabilities of present employees.
This information helps in determining the career planning and development needs.

5) Identifying Deficiencies in Staffing Process: Performance appraisal

helps in evaluating the correctness of hiring decisions because it plays a major role
in recognising employee's recent performance and capabilities for future
development. It assists in placing the right person for the right job. Organisation
can decide regarding re-location and separation of employees who have been
unfairly hired. Thus, functional inabilities can be removed.

6) Identifying Training and Development Needs: Ineffective

performance represents the necessity of retraining. Similarly, effective
performance may indicate the hidden potential that need to be tapped and
enhanced. Organisation should review the training and development needs timely.

7) Diagnose Job Design Errors: It is possible that certain

errors in job design may lead to poor performance . These errors can be
easily identified through performance appraisal.

8) Ensuring Equal Employment Opportunity: Proper performance

appraisal ensures fair and unbiased placement of every employee in an
organisation.

7) Compensation Planning and Remuneration

Under compensation planning and remuneration, various rules and

regulations regarding compensation and related aspects are taken care of. It
is the duty of the HR department to look remuneration and compensation
planning.

Functions of Management

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Each and every business endeavour has its own predetermined goals to achieve. The realisation
of those goals may not be possible without an intended and incorporated unanimous effort of all
the organisational members who follow the instructions of a central coordinating agency.
This Photo by Unknown Author is licensed under CC BY-SA-NC
In the process of management, individual
functions are carried-out according to a time-
specific arrangement .thus ,management
process can be defined as a process where the
manager performs functions in sequential
time- bound manner.

Management is a social process as it is

accountable of achieving the goals of the
organisation by regulating its functions and
also ensuring that the planning activities are
being carried-out in a cost- effective and efficient manner . Management is also a dynamic
process containing different components and practices. Practices performed by management are
not similar to the operational- level activities like procurement ,marketing, production, finance
etc. these dynamic activities are performed by the top, middle and operational level managers.

The main function of management process are as follows:

1) PLANNING:
Planning is the deliberate Planning
effort to attain the expected outcome
through a determined future course of
action . It involves visualisation of
activities that need to be done , the Controlling Organising
methods for doing them, where they
are to be done , what will be the
outcome and the methods to evaluate
the outcomes . As per HENRY
FAYOL, every management should
visualise a plan that comprises of the Directing Staffing
desired result, foreseeing the line of
action, methods to follow and stages
to go through.

2) ORGANISING:

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 The second function of management ids to prepare and organise.
Organising involves division and re-division of work into smaller
duties ,distributing the tasks among designated work- force and allotting authority to
every position for ensuring proper functioning. By organising properly, the
duplication of the activities is avoided. Thereby reducing the functioning cost of the
organisation . it is the responsibility of the management to organise the required
resources beforehand and then to follow the planned activities.

3) STAFFING :
It is the process of appointing people for the positions formed by the
process of organisation . staffing is the process of recruiting , deploying and
retaining sufficient and qualified employees or staffs to create and maintain a
favourable working environment and thereby improving the organisational
effectiveness. In large companies , staffing process is carried out by coordinating
with the human resource department.

4) DIRECTING:

Direction is the key to achieve required goal . after the orientation of the
subordinates , the senior manager is accountable for directing and leading them to
achieve enhanced job performance and to motivate them to work with passion,
confidence and enthusiasm . directing motivates the employees to perform their
responsibilities in realising the organisational goals. While planning, organising and
staffing are the preliminary functions to the actual business activities, direction adds
a spark to the organisation by bringing the processes into motion.

4) CONTROLLING:

Functions of a manager are not complete even when the above

elements are in place . it is very important for the manager to review and asses the
organisational activities on a regular basis and take necessary steps foe ensuring that
the plans are being carried-out in compliance with the predetermined path.
Controlling is a visualisation process that verifies that the tasks are performed as per
expectations and checks for current and future deviations. The control function helps
the management in identifying the deviations if any, and makes significant changes
in the plans for realising the organisational goals.

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LEVELS OF MANAGEMENT Every organisation has a chain of
command which determines the powers and the rank held by the managerial personnel. Levels
of management can be divided into following categories

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 I. Top management :
Top level management consists of people that are at the highest
managerial positions. This position is held by the senior most authorities in an
organisation including the board of directors, chief executive officer (CEO),
sectional heads etc. they are involved in the long-term planning, laying down policies
and strategies for organisational development and selection of methods to be adopted
for achieving the objectives. They act as a medium of communication for maintaining
relations with the external suppliers and agencies. Being the leaders of the
organisation, they are accountable for good or poor performance of the organisation.
II. Middle management :

Departmental heads from the middle level management

they are responsible for monitoring the departmental activities ,giving instructions
and maintain coordination between the various activities carried out in the several
units and divisions . they act as a mediator between the top-level management and
lower-level management . they convey the decisions taken by the seniors and
explain the importance of the same to the lower-level management , they also
transmit the feedback and suggestions given by the supervisory level to the
seniors. Their role is to motivate, inspire and encourage the operational level
managers to increase their performance levels.

III. Supervisory or operative management:

First line supervisors like section officer,

superintendent, supervisor, foreman, etc. are a part of the operative management
level. They follow the instructions and guidelines provided by the middle level of
management. They are responsible for getting things done by the workers .
production activities, assignments of jobs amongst workers, arrangement of
required machinery and tools, etc. are the activities performed by these managers.
It is the responsibility of these managers to get the work done of the desired
quality in the specific period of time . they provide technical assistance to the
workers ;ensure availability of necessary facilities :report problems and feedback
to the higher-level authorities ,etc. it is also a part of their job description to

30
 This Photo by Unknown Author is licensed under CC BY-SA

prepare the daily plan of action as per the guidelines specified by senior level
managers.

PLANNING

Meaning and Definition of Planning:

planning is the primary function of management. Management planning may be
defined as the process of' drawing up a roadmap to achieve certain goals or
objectives. A plan can be defined as 'future course of action'. It is a particular path for
achieving the pre-determined goals. Planning helps the managers in systematically,
rationally and realistically preparing a plan of action. Planning facilitates optimum
utilisation of tangible and non-tangible resources. It helps the managers in assessing
the resources, evaluating strengths, factoring all the threats, considering various
possibilities and choosing the most appropriate alternative.

According to Henry Fayol, "Planning is deciding the best alternatives among others
to perform different managerial operations in order to achieve the predetermined
goals"

According to Koontz and O' Donnel, "Planning is deciding in advance what to do,
how to do it, when to do it, and who is to do it. Planning bridges the gap from where we
are to where we want to go. It makes it possible for things to occur which would not
otherwise happen".

It is said that 'a plan well-made is half done'. Effective planning forms a foundation for
other functions of management. Hence, planning can be defined as a logical process of
achieving goals and minimising risks. wastages and uncertainties.

Nature of Planning
31
 Planning may be considered to have the following features:

I) Planning Assists Achievement of Goals : Planning is goal-oriented. The very

purpose of planning is to achieve the pre-determined goals. Without goal in mind, the
entire exercise of planning goes waste. It is through the process of planning that
organisations seek to achieve their larger objectives and specific goals.
2)
Planning is a Basic Function: Planning is the primary function of any
organisation from which all other functions originate and flow. All the other functions
of management (organising, staffing, directing and controlling) are based on the
plans developed through the planning process. Hence, planning precedes all other
functions and activities.

3)
Planning is All Pervasive: Planning is needed at all levels of the 4 organisational
hierarchy irrespective of the management levels, departments or divisions. The
planning process is not restricted to the top-level management or a particular
functional area; its scope is different for different organisational levels and
departments. Corporate level managers may draw up long-term plans and executive
level managers may prepare plans for to-day operations.
4)
Planning is Flexible: Planning process is always based on assumptions and
forecasts and hence, the plans are modified with the changes in the business
environment. These changes in the original plan are made for realising the set goals.
Therefore, planning is always subjected to mid-course correction.
5)
Planning is a Never-Ending Process : Planning is a continuous process. Plans are
prepared for a specific period of time and at the end of their term, new plans have to
be chalked out. These new plans are prepared according to the new organisational
goals and changing business conditions.

32
6)
Planning is Future-Oriented: Planning is always conducted on the basis of a
future course of action. Organisations prepare plans for where they foresee
themselves in future. Planning involves anticipating the future changes, evaluating
them and predicting their outcomes. Hence, planning is essentially a futuristic
endeavour.
7)
Planning involves Choice: Planning process is conducted only if there is more
than one alternative for realising a particular goal. Without choice, planning is of no
use. In practice, planning assumes that more than one possibility or alternative are
available. Planning involves choosing the best and most suitable alternatives.
8)
Planning is an Intellectual Exercise : Planning is essentially a logical or mental
exercise that predicts a future course of action. It involves thinking before doing. The
prerequisites for sound planning are intelligence, creativity, knowledge, judgement,
foresightedness and imagination.

Purpose of Planning
Planning aims at achieving the following purpose:

l) Mitigation of Uncertainty: By preparing for contingencies and future

situations, planning always seeks to reduce the element of uncertainty that
accompanies the future.

2) Cooperation and Coordination: Planning also improves

coordination amongst various units of an organisation. For this, it takes
into account the competing demands, requirements and aspirations of
all the departments. Hence, planning is a holistic exercise that
facilitates cooperation and coordination.

3) Optimal Utilisation of Resources: one of the major objectives

of planning is to ensure effective utilisation of resources by selecting
the best possible alternative. If the resources are efficiently utilised,
then the Organisation is able to realise its objective as well as economy
in operations.

4) prepare for Contingencies: Unpredictable situations can disrupt

the flow of work in the organisation. A major objective of planning is
to enable the organisations to deal with these unforeseeable

33
 circumstances or contingencies. Planning also involves drawing up
contingency plans to deal with accidents, natural disasters, labour
unrest, etc.

5) Goal Achievement: Planning is all about achieving pre-determined

organisational goals and targets. Organisational goals under a specific
period of time can be achieved only through rational and logical
planning.

6) Reducing Competition: Planning also aims at developing

strategies against existing and potential competitors. Planning helps
organisations to face competitions for their survival and growth.

Planning Process

The process of planning

involves the following
steps:

34
1) Perception of Opportunities: This step is not a
mandatory step in the process of planning. But it is
important that the managers are aware about the
opportunities and threats related to a specific plan. This
step helps the managers in anticipating the possible
opportunities while keeping in mind the organisational
strengths and weaknesses. The plans can be drawn up
only when managers visualise or perceive an opportunity
to establish new unit or to grow and expand. Hence, this
stage is a prerequisite for the planning process.
2) Establishing Objectives: Once an opportunity has
been identified, the next step is to establish the
organisational or departmental objectives. provide
a sense of direction to the organisation. They help in
identifying the areas that require special attention
and also indicate the results that are necessary for the
overall success of the organisation.

3) Planning Premises: Once the goals are set, it is time

to make assumptions and lay down parameters or the
boundaries, i.e., the planning premises. Premises are
the situations under which the planning process has
to be implemented. Planning premises include
assumptions related to internal and external
environmental conditions. Internal premises include
resources, capabilities, strengths, structures, policies,
etc., of the organisation. External
-premises are related to factors like — employment
figures, price levels. technological changes, government
policies, etc.

35
4) Identification of Alternatives: The next step is to
identify the alternatives for achieving the set goals and
objectives. A particular objective can be realised by
adopting different alternatives. In this step the manager
must identify all those alternatives that may help the
organisation in fulfilling its set goals. For example, if the
objective is to go for international business, then a
company can establish its position in the international
markets by adopting different strategies like — joint
venture, merger, management contracting, local
manufacturing, exporting, etc.

5) Evaluation of Alternatives: In this step, the identified

alternatives or options are analysed on the bases of their
relative feasibilities, depending on the various constraints
or assumptions set by the manager. In this particular step
each alternative is evaluated in terms of their contribution
towards the achievement of the set objectives as well as
in terms of the strengths and weaknesses of the
organisation.

6) Selection of Alternatives: This step deals with the

selection of alternative that meets all the requirements
for realising the objectives. Often, more than one
alternative is selected to deal with the changes in
business environment,
e.g., changing land prices, new government policies,
natural disasters, etc. These alternatives or stand by
plans are kept ready for dealing with unpredictable
future changes.

7) Formation of Supporting or Supplementary Plans :

Once the fundamental plan has been prepared, it is time
to draw up supplementary plans for achieving specific
targets. These supporting plans can be -- plan for buying
land, for hiring, for supply of raw materials, etc. These
derivative plans are prepared on the basis of the primary

36
 plan and play a significant role in achieving the
organisational objectives.

8) Establishing Sequence of Activities: once the

primary and supplementary plans are developed, it is
the responsibility of the manager to set a course of
action for implementing the plans. This step involves
deciding what, when, and how to do and who will do
it. Budgeting is also a part of this step so that the plan
has a concrete meaning and can implemented
successfully.

Types of Plans
Various types of plans
are as follows: Various types of
plans are as follows:
l) Standing or Repeated-Use Plans: Standing plans are prepared to
solve issues related to the day-to-day functioning of the organisation.
They are meant for repeated-use and act as a guide manual for the
organisation. They are helpful in outlining a predictable response related
to recurring problems. They guide the employees at every level of
management so that they are able to anticipate the problems and respond

37
 according to the standing plans. In closely linked and integrated
organisations, these plans enable the employees to predict the actions of
others.

Different types of standing plans in an organisation are as follows:

i) Mission or Purpose: Organisational mission, as a

standing plan identifies the primary purpose of the
organisation. Mission is the reason for existence of
the organisation. Mission highlights the basic tasks
or functions of the company. Every organised
activity should have a mission or purpose. Without a
mission the organisation may lose its credibility in

ii) Objectives or Goals: Goals are prepared to give

direction to the functions of the organisation. The
planning process should be based on specific
objectives or goals. Managers should follow the
concept of 'management by objective' for achieving
success and growth.
iii) strategies: Plans should be strategy-oriented,
Strategies are prepared by studying the strategic
plans of the competitors. Strategies are prepared
according to the changes in the competitive
business environment.
iv) policies: Policies are guidelines against the
frequently occurring issues and problems. They help
in hassle-free realisation of objectives. They are
generally prepared by the top-level managers.
v) Procedures and Methods: Procedures are plans that
define the sequence of activities to be performed
over a particular course of action. Methods are a
part of the procedures and depict the ways in which
the tasks should be performed.

38
 vi) Rules: Rules are specific directions for dealing with
particular issues. They help the management in
ensuring smooth functioning of business activities
with respect to management decisions. These are
related to office timings, discipline, leaves, etc. They
are the do's and don'ts for a particular situation.

2) Single-Use or Operating Plans: Standing plans are meant to

deal with common recurring situations and cannot be trusted
to deal with all possible situations and scenarios. They are
mostly used for situations where management decision-
making is required. Therefore, to deal with specific unique
situations, operating or single use plans are required. Once
the situation is over or has been dealt with, a new plan is
prepared to achieve next objective. Such plans are an
effective way of managing dynamic, unforeseen scenarios
within which organisations are required to operate.
All single use plans must incorporate the following features
and aspects:

a Programmes: Programmes aim at specifying a sequence

of steps to be followed for realising a goal within a
particular time-period. These plans are action-based
and are followed as per polices, objectives and
procedures of the organisation.
b Budgeting: A budget is a plan in numeric terms and is
the fundamental tool of a single-use plan. It is prepared
for assessing the tangible and nontangible resources
required for proper execution of programmes. Budgets
are prepared for a particular time period and after their
term is over, a new budget is prepared.

39
 c Project Plans: A project can be defined as a particular task re
ate to the overall programme. They are a series of different tasks to
be followed in a programme. Projects are implemented with

respect to a specific task, and are terminated after the task is

accomplished. Hence, they can be termed as an operating plan.

3) Contingency Plans: Contingency plans are used when a company

faces an anticipated future risk. These plans include a number of
steps that will minimise or manage the harmful effects of the risk.
A company can face dire consequences in the absence of
contingency plans. In their absence, management is forced to
take and accept hasty decisions. These decisions may prove to be
hazardous and costly for the company.
Contingency plans, equip the company to combat with the
emergencies that are likely to have a negative impact, like a fire, a
natural disaster, scarcity of raw materials, labour issues, power failure,
break downs, etc. The idea behind such plans is to mitigate the
negative impact or damage. They are likely to increase the success
rate of the business projects.

PLANNING TYPES
40
 Based on their purpose and scope, organisations use different ways to
draw up plans. Some of them are explained below:

1 Coverage of activities

i) Corporate Planning:
The scope of corporate planning encompasses the
entire organisation. This type of planning involves taking decisions
related to the growth of the industry, organisation. society, environment,
etc. Corporate planning is generally undertaken by the top-level
managers, keeping in mind the factors affecting the external
environment. Corporate planning activities are related to the formulation

41
 of vision, mission and strategic plans for achieving the organisational
objectives.

ii) Functional Planning:

Functional planning is conducted to satisfy the work-related
requirements of various organisational departments and to achieve the
organisational goals. Functional planning facilitates the managers in
maintaining standardised managerial practices so that all departments/
divisions / units work in unison. Functional Planning also contributes
towards better coordination.

2 Importance of contents

i Strategic Planning:

Strategic planning is conducted for

determining the future course of action for realising the
long-term objectives. Strategic planning fix-uses on the
larger picture and outlines the framework within which
the operational plans and decisions are to be taken.

ii Tactical Planning:

Tactical planning is generally undertaken

for one business year. Largely focused on operations
(production and selling), tactical planning is short term in
nature and deals so that immediate operational issues
and matters like product distribution. production
decisions (during peak season). etc.

iii Operational Planning:

As compared to tactical planning (task
or goal specific). operational planning is to short-term
business strate2ies. annual budgets and implementation
of operational plans.

3 Time Period Involved

42
 i Long term Planning:
Long-term planning is conducted
to achieve the long-term objectives. This type of
planning can be for 3, 5 or even 20 years. depending
upon the nature of organisational goals. These are
comprehensive plans that usually cover all operational
departments of the organisation. Long-term planning is
affected by the changes in the external business
environment.

ii Short- Term Planning:

Their tenure is short, generally

running up to a year. Short-term planning is related to
the functional areas (finance. human resource,
marketing, production, etc.) of the organisation. They
are undertaken to achieve the short-term objectives.

4 Approach Adopted

i) Proactive Planning:

Proactive planning helps

the organisation in predicting the result
of future events and how they ate likely
to affect the organisation. Such planning
is always advisable as it mitigates
elements of shock and surprise that
usually advisable unexpected events.
and often have a damaging or adverse
impact on the organisation. In other
words, proactive planning is all about
anticipating risks and taking adequate
measures to minimise them.

ii) Reactive Planning:

43
 Reactive planning is
the opposite of proactive planning.
Reactive planning is done to deal with
the current situation. i.e., reactive
plans are prepared to take corrective
measures in ease of unpredictable
issues and problems.

5 Degree of Formalisation:

i Formal Planning:
Generally large
professionally managed organisations
adopt formal planning, i.e., a scientific
and logical approach to planning. It is
based on empirical data and realistic
assessments and assumptions. This kind
of planning calls for great sophistication
and analysis.

ii Informal planning :
Small business rely
on informal planning which is based on
intuition , common sense, and
experience of the owner. Such planning
is short term and unstructured.

44
 IMPORTANCE OF PLANNING
The importance of planning may be summarised as under:

1 Provides Direction and Purposes:

Planning seeks to give a sense of purpose and

direction to the organisation. It provides the employees with answers
regarding the direction of the organisation, role of managers,
responsibilities of employees, etc. It provides rationale to all the
activities that are to be undertaken by an organisation for realising its
pre-determined goals.

2 Helps in Selecting Feasible Alternatives:

Planning helps the management in anticipating and being

prepared for the future business conditions. Managers are able to
evaluate options, estimate consequences and therefore exercise better
judgement while selecting alternatives and choices with the help of
proper plans. It also helps the organisation in selecting the best course
for realising the set objectives.

3 Encourages Rational and Logical Decision Making:

45
 Planning provides all the necessary inputs to decision-
makers, so as to enable them to take judicious and rational decisions.
Planning discourages decisions that are based on baseless assumptions,
luck and chance. Thus, planning minimises the risk of failure and errors,
provides necessary flexibility, and above all, infuses a sense of discipline
during decision-making and problem-solving.

4 Planning is a King-pin Function:

Planning is a primary function from which all other

functions originate. All activities are based on the planning process.
Organisational plans form a base for developing organisational structures
and delegating authorities. All the elements of direction (leadership,
motivation, supervision and communication) are exercised to ensure the
proper execution of organisational plans. Hence, it can be said that
planning is the function around which all other functions of management
are carried-out.

5 Optimal Allocation and Utilisation of Resources:

Planning also enables organisations to optimally allocate

and utilise their human and non-human resources. Scarce and expensive
resources can be judiciously allocated and utilised in a planned way.
6 Enhances Efficiency:

Planning as a function of management also helps in

enhancing the efficiency of the organisation. Planning enhances
organisational efficiency in the following ways:
i) By adoption the best alternative or course of action.

ii) By judicious and optimal use of resources while

ensuring minimal wastage. iii) B) undertaking all
activities after due diligence and consideration.

46
 7 Increases Adaptability:
Organisations that emphasise on
planning, especially on proactive planning, are better
equipped to deal with the business changes. They tend to
be more flexible and adaptable. An organisation that is
able to adapt according to the changes in the business
environment is able to achieve growth and success. For
example, a company should be able to adapt with the
changes in the technological environment.

8 Increases Ability to Anticipate:

Anticipate: Planning also enables the

organisations to anticipate changes, either internal or in the
environment and to take necessary preventive measures.
Planning helps 'in scanning the environment so that the
organisation is able to predict the future opportunities and
threats. These predictions help in attaining a competitive
advantage over the competitors and in exploiting the
opportunity, Organisations that emphasise on planning are in
a better position to control the situations, rather than being
controlled by them.

9 Integration:

Planning also serves as a great unifying force as it

seeks to provide unison and integrity to all the activities
of an organisation by providing a common framework.
Planning seeks to give a common purpose and direction
to the organisational activities. It helps in integrating the
activities of different functional areas toward the
realisation of common organisational goals.

LIMITATIONS OF PLANNING
Despite the acknowledged utility and indispensability of planning, it also tends to have
certain limitations or disadvantages. Some of these are:

47
1. Inflexibility:
Sometimes planning takes away the ability of the management to be flexible. Once
a plan has been agreed upon, it is not easy to deviate from the selected course of actions,
this rigidity acts as a barrier for the employees in successful implementation of their
functions.

2. Misdirection:
Sometimes planning efforts are not successful due to the misdirection
of an individual or a group of individuals. Planners or managers try to formulate the
objectives and plans to serve their personal interests rather than achieving the overall
goals of the organisation. Hence, the personal biasness of the managers acts as a
limitation in implementing the planning process

3. Time- Taking Exercise:

Planning involves collection of data, its analysis, forecasting and
making assumptions. Hence, it is a time taking exercise which involves considerable
intellectual efforts. This makes planning impractical in emergencies, which require
immediate response and action.

4. False Sense of Security:

The very existence of a plan induces a false sense of confidence
and security within the organisation as the employees believe that the plan would take
care of all eventualities. Although employees are contended with the set plan, yet they

are not encouraged or motivated to improve their performance and productivity.

48
 Further, they are at a loss when situations change and the plans fail to achieve the set
objectives.

5. Inaccurate Information:
Planning is essentially a futuristic exercise that is based on
assumptions and forecasts made by the planners or managers. Despite the use of the most
sophisticated modelling tools available to planners, assumptions and forecasts can still go
wrong, rendering the entire plan ineffective and inadequate.

6. Uncertainty :
Planning process also suffers from the uncertainty of change. Planning
is for the future but is based on present business conditions. Changes in business
conditions like unanticipated risks, obsoletion of technology, changing consumer
behaviour, unfavourable market conditions, etc., limit the successful execution of plans.

7. Limits Internal Flexibility:

Planning process outlines the framework within which the
managers have to carry-out their roles and functions. This outline limits the internal
flexibility of the organisational activities as well as the ability of the organisation to
change with the changing business environment. Primary constraints that make the
organisations inflexible are:
i) Psychological Inflexibility: This could take the form of resistance to change, or
cultural prejudice, etc.

ii) Limitations Set by Policy and Procedures: The policies and procedures laid
down by an organisation also serve as barriers in designing and implementing
the planning process.

iii) Capital Investment: Capital investments are an important part of the planning
premises as these investments are generally fixed and limited numbers of
options are available for adopting an alternative course of action. These fixed
investments are not easy to dissolve and can become flexible if the organisation
is able to change its course of action. In extreme cases, such assets are either
liquidated or simply written off, to make way for more suitable assets.

8. External Constraints:

49
 There are several factors or variables in the external environment that are
essential for planning, but over which planners have little or no control. External
variables are dynamic and cannot be easily or correctly predicted. The factors which add
an element of uncertainty to the planning process are:
i. Political Climate :
Politics affects business and their planning process in many
ways e.g., governmental policies, regulatory and tax laws , political
instability , etc these factors act as constraints for any planning process .

ii. Trade Unions :

Trade unions also have a great bearing on business and their
planning process . they set the agenda regarding wages, productivity, work
rules, benchmarks, etc. managers have to perform their activities under the
rules and guidelines set by the trade unions.

iii. Technology Changes:

One of the most dynamic business environment
variables is technology. Rapid changes in technology may restrict successful
implementation of the planning process.

50
CASE STUDY

51
System's Migration to New Skills

Background Information
Looking across the rows of men suits, Bob Williamson spots Pat Deklcar working
with one of his employees, a sales associate. They are trying to cornplete a sales
transaction on the new WIZARD information system. Bob watches as Pat again fumbles
his way through another transaction. Almost instinctively, he rolls his eyes and shakes
his head.

Bob Williamson manages the Men's Furnishing Group for the Northridge Mall store
of the Dukes and Noble Department store chain. As one of the younger Group
managers, Bob has charge of over 20 full-time and part-time sales and service
representatives in four units: suits and outerwear, leisure clothes, shoes, and
accessories. Bob has been with Dukes and Noble since joining their Management
Associates Development program after graduating from college. Pat Dekkar is about 15
years older than Bob, with about that many more years experience in the retail trade.
Pat began his career in a floor sales position and, after years of hard work, was
promoted to supervise the Leisure Clothes Unit
.
Beginning about six months ago, Dukes and Noble began a "systems migration" (as
the Data Processing staff called it) of replacing the somewhat antiquated computer
and information processing system with one that was more streamlined. Under the
new, integrated system, all the retail functions—inventory, sales and customer tracking,
returns and adjustments, accounting and profitability calculations—would be joined
together and operated out of the same data base. Further, all stores would be linked
together, giving headquarters better ongoing control of the company as a whole and of
stores and departments in particular.

As a result of this "migration," virtually every job in the company was changed
in some way. The jobs of the sales associates changed most: virtually every product,
customer, or financial transaction was to be done differently. While the complexity of
any one task might be small, the combined weight of all the changes resulted in major
learning stresses on employees. They had to learn how to operate the system, access it.,
complete all transactions through it, and make any needed corrections directly on the
point of sale terminal—all while the customer waited across the counter.

As the kick-off date for the conversion to the new system neared, all
employees were brought in for a comprehensive four-day training program.

52
Managers and supervisors were trained first so that they could serve as aides and
coaches to the other employees once the WIZARD was operational. Bob and Pat
attended one of the early programs together.

Bob was impressed by how much the program covered. The trainers went through
every conceivable transaction and procedure, demonstrating and explaining them. Each
participant in the class was able to practice some of the procedures on the demo
terminal. The notebook provided in the program was reasonably thorough, even if it
was poorly organized.

As was characteristic, Pat Deklcar approached the training with gusto and
enthusiasm. Pat had never worked much with computers before, and his anxiety about
learning how to use the system was more than offset by his strong moti vation to learn.
Bob was particularly pleased with this matter because he was concerned that Pat's strong
"people orientation" might not have a corresponding "technical" aptitude.

It has now been more than a month since the new system started up. All the
associates in the store completed the system training shortly before the conversion date
and by now, most are operating fairly well with it.

Indeed, that's what is so troubling to Bob. In spite of the training and the time on
the system, Pat just hasn't made satisfactory progress mastering it. Bob sees Pat's
problems in various ways, like the instance he has just witnessed. There was Pat,
working with one of his sales associates, trying to complete a distinct, but not that
unusual, procedure. It was clear that the associate actually could complete the procedure
better than Pat. Pat was following a trial-and-error process of running through different
key combinations to see if any worked. The customer was growing annoyed.

Bob thought about other instances. For example, Pat had asked Bob about how to
complete the same procedure on four different occasions in the course of a ten-day
period. At times, Bob would watch Pat refer a customer to another sales station or have
the customer wait while he asked another associate to process a complicated transaction.
At one point, Bob asked Pat to check his manual, but Pat could only say it didn't help him
that much, and besides, he wasn't sure where he had left it.
On top of it all, Bob is now sensing that Pat is becoming more frustrated and stressed
by the situation. He now thinks that Pat is trying to hide from Bob his discomfort with
the system. In a way, this is Pat's method of signaling to Bob that Pat's knowledge of
the new system cannot be discussed.

Bob wonders how much longer he can go without taking action. Already,
there are some grumblings from the other associates that Pat cannot be
counted on to help them with their problems. Bob has noticed how Pat's
unease with the process is putting some additional burdens on the other
employees, as well as the customers. Bob knows that Pat is smart enough

53
 to learn this material, but cannot understand why it is so difficult. Bob
wants to help but also feels that Pat needs to show some progress—and
fairly soon—or else Bob may be forced to take some actions he would
rather not take.

CASE QUESTIONS

1. IS THERE A TRAINING PROBLEM ?

There are no training problem as other employees are quite

satisfied & found the program helpful to become handy with the system. There is
clearly a performance problem on pat’s part.

There is clearly a performance problem on Pat's part. Pat was yet to show a
minimum level of proficiency in operating the new system. This problem remains after Pat has
completed a formal training program and has received the same work experience as all the
other employees. During that time, the other employees learned the system well enough to
operate it.

It would be more precise to label the problem as more

of a learning than a training program, although they are closely linked.
The issue facing Bob is how to create some new kind of learning plan
that would help Pat move to proficiency. Unfortunately, Pat seems to
be painting himself into a corner by not wanting to discuss the
problems he is facing.

2. What can bob do to assist pat in completing the learning process?

Bob can perform several very useful tasks in

working with Pat. First, he should make it possible to discuss
the problem. He can do this by letting Pat know that he's
noticed Pat may still be in a learning mode and that he wants to
help Pat. In this communication, Bob should try to reduce the
threat-producing anxiety such a meeting might provoke. Bob can
do this by treating the matter not as a job-threatening event, but
rather, as a natural process of learning something new. By
indicating that others also struggled to leam and that it is just a
matter of time before Pat picks up the new system can be a big
step. Bob can also acknowledge that people learn in different
ways and at different speeds, and that the task before him and

54
 Pat is how to find the learning process that will work best for
Pat.
Second, Bob needs to work out with Pat a plan that will
help him learn the system. This may begin by having Pat
go through certain transactions so that Bob can discover
where Pat is running into difficulty. Bob should prompt
him to keep notes in some way. Bob should also make
sure Pat finds his training manual-or gets a new one.

Pat may be making some simple mistakes that can be

easily corrected. However, it's possible that by this time,
Pat is facing some deeper problems. If so, Bob should
work with Pat regularly to practice some transactions.
Working on a demonstration and practice cycle can be
effective. An alternative would be for Bob to request
training and coaching assistance from someone who
conducted the training .

Bob should work with Pat regularly to practice some

transactions. Working on a demonstration and practice
cycle can be effective. An alternative would be for Bob
to request training and coaching assistance from
someone who conducted the training.

3. What should bob expect of pat’s performance in conducting and

completing his own learning?

Pat may not be very effective at managing his own

learning process.

 Identify area of skill discomfort (Analyzing skill

deficiencies)
 Establish learning goals (to remove the deficiency)
 Locate instructional information (be it peers, Bob , the
training manual , or whatever)
 Practice the skills
Bob should make it clear that he does expect pat to take
responsibility for his learning process.

4. How should bob respond to pat in the next weeks?

Bob should take a more active role in working with

pat to help him learn this new system. If bob is not actively coaching pat

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in the skills, he should be checking with pat regularly (at least every few
days) to see how his learning is proceeding. This may require bob to
casually check out how well pat is conducting transactions.
If a couple of weeks pass and pat is not making progress, bob may need
to initiate stronger action.

CASE ANALYSIS

1 What are the key issues or problems of the case?

The new automated information system adopted by the
Dukes and Noble Department store creates frustrations and
difficulties with some employees, especially older ones like Pat
Dekkar. He cannot master the system itself despite the fact that
he IS one of the supervisors who must be fully aware of the
system . due to the less knowledge in system through transactions he
feels discomfort du to that work load increases to other employees .

Bob Williamson, one of the company's managers, is being

troubled by Pat's lack of mastery of the system. He doesn't
know what approach will he do without offending pat but
he needs to decide soon for many factors are at stake and
being affected by the problem

2 Prioritize the issues or problems?

 Lack of knowledge in operating system

 Low performance
 Reluctance to communicate

3 Is it necessary to identify the cause of the

problem?

Yes, it is necessary to identify the cause

of the problem then only we can take necessary
actions to do for the employees like , giving
training , motivation, confidence . this makes

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 them to become more responsible and confident
towards their job .

4 Brainstorm the options available?

Brainstorming combines a relaxed, informal

approach to problem solving with lateral thinking. It
encourages to communicate with others,
Share thoughts …. So, in here brainstorm is one of good
option for Pat Decklr.

5 Evaluate the Options

ADVANTAGES DISADVANTAGES
Not everyone actively takes part in
Many participants already know brainstorming, some participants are
the rules of brain storming. more quiet and dodn't like to speak
spontaneously in groups.
Lots of risks can be recognized
Other participants speak too much
quickly
Some participants need longer to
One idea inspires the next understand the theme and can't
immediately provide ideas.
Participant need not be afraid that
It's not possible to cover all risks
their ideas will be evaluated during
with brainstorming.
the session

6 Select the optimum solution?

 Lots of risks can be recognised

 One idea inspires the next

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 Through these managers can evaluate pat and help pat
to get increase his performance in works.

7 Describe how the solution should be implemented?

Based on the analysis of the problem and the possible courses of action, the best solution
would be the one where the management will provide more training regarding the new system.
Other employees might not also still master the system so it would be better if more training will
be given since it is part of an employee's right.

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CONCLUSION
At last, I want to say that while recruitment and selection identity acceptable candidate. the
process still continues with induction program for the new employee. we can further fine tune
the fit between the candidate's qualities and the organization's desire. Then to make the
employees more skilled behavioural training may be provided.
It makes the positive impact of any organization, but it needs a lot of money, time ,attention
and guidance. it is just like only taking, not giving or taking the starting benefits and when the
time comes for returning back you just quit the job.
The employee motivation is needed to built up through constant attempts of the
organization. The organization may adopt various methods for motivating the employees. It
may be by providing recreational activities such as tours, annual days, functions, and parties.
The organization must consider its employees as its family members and must provide some
profit-sharing policy, such as ESOPs, bonus and shares. The organization may provide fringe
benefits.

It was great of learning so much about HRM practices and implementing them. I’m really
thankful for the mentor for explaining HUMAN RESOURCES MANAGEMENT.

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THANK YOU

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