EVOLUTION AND GROWTH OF HRM - 1.

Industrial revolution
era— 19th century 2. Trade union movement era — close to
the 19th century 3. Social responsibility era — beginning of OBJECTIVES OF HRM-  To help the organization reach its
the 20th century 4. Scientific management era— 1900-1920s goals.  To ensure effective utilization and maximum
5. Human relations era— 1930s-1950s 6. Behavioural science development of human resource.  To ensure respect for HR AUDIT - A Human Resources Audit (or HR Audit) is a
era— 1950s-1960s 7. Systems and contingency approach era human beings. To identify and satisfy the needs of comprehensive method (or means) to review current human
– 1960 onwards 8. Human resource management era — 1980 individuals.  To ensure reconciliation of individual goals with resources policies, procedures, documentation, and systems.
onwards. SIGNIFICANCE OF HRM – 1. Facilitates professional those of the organization.  To achieve and maintain high This thorough review helps to identify needs for
growth :- Due to proper Human Resource policies employees moral among employees.  To provide the organization with improvement and enhancement of the HR function. It is the
are trained well and this makes them ready for future well-trained and well-motivated employees.  To increase to process to evaluate a human resource department's
promotions. Their talent can be utilized not only in the the fullest the employee’s job satisfaction and performance. It examines various aspects of the HR tasks in a
company in which they are currently working but also in selfactualization.  To develop and maintain a quality of work company. These can be policies, processes, procedures,
other companies which the employees may join in the future. life.  To be ethically and socially responsive to the needs of documentation, and systems. - Hr audit areas of review
2. Better relations between union and management :- society.  To develop overall personality of each employee in include:-  Hiring and onboarding  Benefits  Compensation
Healthy Human Resource Management practices can help the its multidimensional aspect.  To enhance employee’s  Performance evaluation process  Termination process and
organization to maintain co-ordinal relationship with the capabilities to perform the present job.  To equip the exit interviews  Job descriptions  Form review  Personnel
unions. Union members start realizing that the company is employees with precision and clarity in trans-action of file review. NEED OF HR AUDIT -  The managements of
also interested in the workers and will not go against them business. ROLES OF HR MANAGERS IN MODERN DAY organisations have realized the need for HR audit because of
therefore chances of going on strike are greatly reduced. 3. ORGANISATIONS - 1. Recruiting: HR managers serve as powerful influence on motivation of employees at work due
Helps an individual to work in a team/group :- Effective gatekeepers between job seekers and their organizations. to participation of employees in decision making.  Growth
Human Resource practices teach individuals team work and They sift through the onslaught of resumes and cover letters of organisation needs HR audit. Large organisation requires
adjustment. The individuals are now very comfortable while — or at least utilize applicant tracking systems — to find continuous feedback for improvement in performance of its
working in team thus team work improves. 4. Identifies qualified candidates that appear to meet their company’s employees.  Mounting pressures from trade unions of
person for the future :- Since employees are constantly needs. 2. Employee Onboarding: Today’s HR managers are employees and their participation in formulating employment
trained, they are ready to meet the job requirements. The also partly responsible for a smooth employee onboarding policy and questioning of managerial competence have raised
company is also able to identify potential employees who can process with new hires. They need to make sure new the need for HR audit.  Many plants are located at large
be promoted in the future for the top level jobs. 5. Allocating employees know who their co-workers are, where their work distances. This also made the HR audit compulsory. HRIS
the jobs to the right person :- If proper recruitment and spaces are, what devices they can use, and the like. 3. (human resources information system) - HRIS, or human
selection methods are followed, the company will be able to Employee engagement: HR departments can also play a role resources information system, is software designed to help
select the right people for the right job. When this happens in ensuring employees are engaged. 4. Compliance: Today’s businesses meet core HR needs and improve the productivity
the number of people leaving the job will reduce as the will HR managers are charged with the task of ensuring of both managers and employees. This is in large part
be satisfied with their job leading to decrease in labour compliance across the board. Professionals need to make possible because of automation and synchronized data,
turnover. 6. Improves the economy :- Effective Human sure that their organizations are following the law exactly as which may reduce costly redundancies and provide a trusted
Resource practices lead to higher profits and better it’s written. 5. Employer branding: business needs to attract source of decision-making, respectively. HRIS helps
performance by companies due to this the company achieves and hire top talent if it wishes to succeed. One way to do that businesses use technology to enhance their people processes
a chance to enter into new business and start new ventured is through employer branding — another responsibility that and make both HR and their organization as a whole more
thus industrial development increases and the economy falls under the purview of HR. employer branding is the sum efficient. As a result, they may be better able to keep pace
improves. HUMAN RESOURCE MANAGEMENT - Human of the HR team’s efforts at promoting their organization to a with evolving workplace trends. Benefits- 1. Make data-
resource management (HRM) is the practice of recruiting, specific set of individuals. 6. Organisational change driven decisions: Some systems have predictive analytics,
hiring, deploying and managing an organization's employees. management: HR departments play a huge role when it including forecasting and modeling, which can help HR
HRM is often referred to simply as human resources (HR). A comes to change management. When employees are professionals make more informed decisions. 2. Enhance
company or organization's HR department is usually expected to do one thing one day and then something user experience: HRIS with user-friendly interfaces and
responsible for creating, putting into effect and overseeing entirely different the next, not all of them will take the news mobile apps may make it easier to complete job applications,
policies governing workers and the relationship of the well. 7. Development: HR managers are also responsible for enroll in benefits and perform other HR tasks. 3. Reduce
organization with its employees. HRM is the personnel ensuring that employees have the tools and knowledge they time-intensive labor: Common HRIS features – such as
function which is concerned with procurement, need to succeed at their jobs. 8. Exit interviews: Today’s HR automation, analytics and artificial intelligence – may help cut
development, compensation, integration and maintenance of managers oversee candidates from the first day they walk the labor costs associated with payroll, time and attendance,
the personnel of an organization for the purpose of through the door until the day they leave. Part of that and other manual administrative work. 4. Accommodate
contributing towards the accomplishments of the supervision includes conducting exit interviews in which HR business growth: Cloud-based technology is often capable of
organization’s objectives. Therefore, personnel management employees pick the brains of departing workers. handling increasing numbers of employees, transactions and
is the planning, organizing, directing, and controlling of the CONTEMPORARY HR PRACTICES– 1. Providing security to data volume, as well as expansions to new locations. 5.
performance of those operative functions. The goal of HRM is employees. 2. Selective hiring: Hiring the right people. 3. Self- Maintain compliance: Some HRIS providers have monitoring
to maximize employees’ contributions in order to achieve managed and effective teams. 4. Fair and performance-based capabilities to stay current with changing regulations and
optimal productivity and effectiveness, while simultaneously compensation. 5. Training in relevant skills. 6. Creating a flat data security measures to help prevent incidents. JOB
attaining individual objectives (such as having a challenging and egalitarian organization. 7. Making information easily ANALYSIS - Job analysis is the process of studying a job to
job and obtaining recognition), and societal objectives. SCOPE accessible to those who need it. CHALLENGES -  Attracting determine which activities and responsibilities it includes, its
OF HRM – 1. Human resources planning: the company to try top talent  Embracing  Developing leaders  Fostering a relative importance to other jobs, the qualifications necessary
to find the number of jobs vacancy in which a particular culture of continues learning  Managing diversity  for performance of the job and the conditions under which
department The number of staff required with the necessary Monitoring and safety  Creating a quality employee the work is performed. An example of a job analysis-based
qualification and experience. 2. Job analysis design: Job experience  Adapting to innovation  Compensation  form would be one that lists the job's tasks or behaviors and
analysis gives detailed information about the job description Understanding benefit packages  Recruiting talented specifies the expected performance level for each. An
and employee specification in the company. 3. Recruitment employees  Retaining talented employees  Workplace important concept in job analysis is that the job, not the
and selection: Based on information collected from job diversity  Compliance with laws and regulation. , person doing the job, is assessed, even though human
analysis the company prepares advertisements and publishes INTRODUCTION TO HR ANALYTICS - HR analytics is the resources (HR) may collect some job analysis data from
them in the newspapers, Employment sites, etc. 4. process of collecting and analysing Human Resource (HR) incumbents. PROCESS OF JOB ANALYSIS - 1. Organisational
Orientation and induction : Once the employees have been data in order to improve an organization’s workforce analysis: The first step in the job analysis process is to
selected an induction or orientation program is conducted. performance. The process can also be referred to as talent determine its purpose. This will help determine what kind of
The employees are informed about companies backgrounds, analytics, people analytics, or even workforce analytics. This data to collect and how to collect it. The necessary
products, different subsidiaries organizational culture and method of data analysis takes data that is routinely collected background information for this step can be collected by
values, and work ethics. 5. Training and development: by HR and correlates it to HR and organizational objectives. using organization charts, process charts and job
Training program helps the employees to put up a better Doing so provides measured evidence of how HR initiatives descriptions. 2. Select representative positions: It will be time
performance on the job. The training program is also are contributing to the organization’s goals and strategies. consuming and costly to analyse all jobs in an organization.
conducted for existing staff that have a lot of experience. This For example, if a software engineering firm has high So, it is essential to select a representative sample of jobs for
is called refresher training. 6. Performance appraisal: HR employee turnover, the company is not operating at a fully detail job analysis. 3. Collect data: The next step is to collect
department checks the performance of the employee. Which productive level. It takes time and investment to bring job-related data such as educational qualification, duties,
helps appraisal future promotions, incentives, increments in employees up to a fully productive level. HR ACCOUNTING - responsibilities, working conditions, employee behaviour,
salary, etc . 7. Compensation planning and remuneration: Human Resource Accounting is the process of identifying and skills and abilities. Data is collected by using methods such as
There are various rules regarding compensation and other measuring data about Human Resources and communicating observation, interviews and questionnaire. 4. Review
benefits. It is the job of the HR department to look into this information to the interested parties. It is an attempt to collected data: A job analysis report is prepared by using the
remuneration and compensation planning. 8. Motivation, identify and report the Investments made in Human gathered data. The information is then verified with the
welfare, health, and safety: It is the job of the Human Resources of an organisation that are currently not worker performing the job and their supervisor. 5.
Resource department to look into the different methods of accounted for in the Conventional Accounting Practices. Developing job description: The information collected is used
motivating & encourage the employee. Apart from this Objectives of HR Accounting -  HRA facilitates managing to develop a written statement known as job description. Job
certain health and safety regulations have to be followed for the people as one of the resources of the organization.  To description is a document that describes the responsibilities,
the benefits of the employees. 9. Industrial relations: help the management for making decision about acquiring, working conditions, locations, risks and tasks required for
Another important area of Human Resource Management is allocating, developing and maintaining human resources in effective job performance. 6. Developing job specification:
maintaining co-ordinal relations with the union members order to keep control on human resource cost as one of the The final step in the process is to develop job specification.
with employer-employee, employee- employee. This will help organizational objective.  To provide information to the Job specification and job descriptions are two tangible
the organization to coordinate with one another for smooth management regarding human resource cost and value.  To products of the job analysis process. Job specification is a
working. FUNCTIONS OF HRM -  Human resource planning see whether the human resources are effectively utilized or statement of personal traits, educational qualification,
 Recruitment  Performance management  Learning & not  To see whether the human resources are producing a experience, background and skills needed to perform a job.
development  Career planning  Information sharing  return on investment of the persons interested in the
Rewards & recognitions  Compensation & benefits  organization or not.  Provide human resources accounting
Industrial relations  Policy formulation  Health and safety  detail to outsiders like financers such as bankers, financial
Personal well-being  Employee engagement  Compliance  institutions and creditors etc.
Administrative responsibilities.
 required at different positions according to their job profile channels which help the organization to establish contact
are to be estimated. The available internal and external with the potential candidates.
sources to fulfill those requirements are also measured. 4.
Estimating Manpower Gaps: Comparison of human resource
demand and human resource supply will provide with the
surplus or deficit of human resource. Deficit represents the
JOB DESIGN- Job design is the division of work tasks assigned number of people to be employed, whereas surplus
to an individual in an organization that specifies what the represents termination. 5. Formulating the Human Resource
worker does, how, and why. Effective job design contributes Action Plan: The human resource plan depends on whether
to the achievement of organizational objectives, motivation, there is deficit or surplus in the organization. 6. Monitoring,
and employee satisfaction. Design jobs to have a variety of Control and Feedback: It mainly involves implementation of
tasks that require changes in body position, muscles used, the human resource action plan. Human resources are PROCESS OF RECRUITMENT - 1. Recruitment Planning: It is
and mental activities. For example, if an employee normally allocated according to the requirements, and inventories are the first step of HR Recruitment Process in which the job
assembles parts, the job may be enlarged to include new updated over a period. METHODS OF DEMAND AND SUPPLY vacancies in the organization are analyzed and relevant job
tasks such as work planning, inspection / quality control, or FORECASTING - Demand forecasting - Demand forecasting is description is prepared. It also includes preparation of job
maintenance. Various methods – 1. Job rotation: It is the a quantitative aspect of human resource planning. It is the specification and details about qualification and skills needed
lateral shift of the job role or positions, it happens between process of estimating the future requirement of human to perform the job. 2. Strategy Development: After the job
the job levels, and it cannot be mistakenly considered a resources of all kinds and types of the organisation. 1. description and job specification is prepared the organization
promotion. As it does not help the person to move up the Executive judgement: Executive or Managerial Judgment decides the number of recruits needed to work on the profile
ladder of his/her career. It is done on a temporary basis method is the most suitable for smaller enterprises because to close the vacancy as soon as possible. The recruiter
where employees are moved back to their previous job after they do not afford to have work study technique. Under this decides the strategy that should be adopted for successful
a stipulated time. 2. Job enlargement: Job enlargement as the method the executives sit together and determine the future recruitment of employee. 3. Searching: The activation took
name suggests is about adding more responsibilities or manpower requirements of the enterprise and submit the place when the department which has vacancy confirms it to
activities in the same job of the employee. This means that proposal to the top management for approval. 2. Work load the HR manager about the requirement; also approve the
employees will do different activities in the job that forecasting: It is also known as work load analysis. Under this draft of job description as well as specification. Under selling
eliminates the boredom that the employee was going method the stock of workload and the continuity of the organization selects the channel of communication to
through, and it also eliminated the monotonous work of the operations are determined. Accordingly the labour reach the prospective candidates. 4 .  Screening: Once the
employee. 3. Job enrichment: This is the method where the requirement is determined. The workload becomes the base job applications are received by the HR Recruiter it starts the
motivators are added to the existing job. Like adding skill for workforce analysis for the forthcoming years. Here due screening process. It is a step in which the application are
variety, extra tasks, giving feedback, meaning to the job, and consideration is given to absenteeism and labour turnover. 3. shortlisted for the further selection process. After short-
increasing autonomy. Through this method, the job is made Statistical techniques: Long range demand forecasting for listing of application based on the job specification the
more meaningful for the employee. 4. Job simplification: It is human resources is more responsive to statistical and selection process begins. 5. Evaluation and Control: The
the process where few tasks are removed from the job to mathematical techniques. With the help of computers any validity and effectiveness of HR Recruitment Process is
make the job more focused on the main job. The aim behind data is rapidly analyzed. The following are the methods of assessed in this step. The step is essential as organization has
this method is to initiate improved work methods that can forecasting used under this category:  Ratio trend analysis  to check the cost incurred during recruitment and the output
maximize the output along with minimizing the expenses and Econometric models  Bureks Smith model  Regression in terms of selection of suitable candidates and their joining.
costs. HUMAN RESOURCE PLANNING(HRP) - Human analysis. Supply forecasting - Supply forecasting means to SELECTION - Selection is the process of choosing the most
resource planning (HRP) is the continuous process of make an estimation of supply of human resources taking into suitable candidates from those who apply for the job. It is a
systematic planning ahead to achieve optimum use of an consideration the analysis of current human resources process of offering jobs to desired candidates. Once the
organization's most valuable asset—quality employees. inventory and future availability. 1. Head Count: Count of the potential applicants are identified, the next step is to
Human resources planning ensures the best fit between total number of people available department-wise, sexwise, evaluate their qualification, qualities, experience, capabilities,
employees and jobs while avoiding manpower shortages or designation-wise, skill-wise, pay roll-wise etc. 2. Job Family etc. & make the selection. It is the process of offering jobs to
surpluses. OBJECTIVES OF HUMAN RESOURCE PLANNING -  Inventory: It consists to number and category of employees the desired applicants. Process of selection - 1. Initial
Proper assessment of human resources needs in future.  of each job family. 3. Age Inventory: It consists of age-wise Screening. 2. Completion of the application form. 3.
Anticipation of deficient or surplus manpower and taking the number and category of employees. This gives us age Employment tests. 4. Job interview. 5. Conditional job offer.
corrective action.  To create a highly talented workforce in composition of human resources. Dynamism, creative 6. Background investigation. 7. Medical/physical examination.
the organization.  To protect the weaker sections of the abilities innovativeness is present in young employees while 8. Permanent job offer. METHODS OF SELECTION - 1.
society.  To manage the challenges in the organization due making of proper judgment and display of maturity is shown Preliminary selection Once an employer has received what it
to modernization, restructuring and re-engineering.  To by elderly employees. 4. Inventory of skill, experience, values considers sufficient interest in the position, the recruiter
facilitate the realization of the organization’s objectives by and capabilities: Organisation should take a stock of present starts screening the applications or resumes to determine
providing right number and types of personnel.  To reduce inventory of skill, employees with number of years of which applicants to contact for the preliminary screening
the costs associated with personnel by proper planning.  To experiences (10 yrs, 15-yrs, 20 yrs and more etc.), values and interview. Employers determine sufficient interest based on
determine the future skill requirements of the organization. capabilities. 5. Inventory of Qualifications and Training: This the number of applications or the amount of time the job is
 To plan careers for individual employee.  Providing a consists of educational qualifications of the employees posted. 2. Telephonic interview Used as a first-round
better view of HR dimensions to top management.  academic and technical and special qualifications if any and interview, telephone interviews give recruiters an
Determining the training and development needs of the training received by the employees. 6. Inventory of Salary opportunity to find out whether an applicant is still interested
employees. FACTORS AFFECTING HUMAN RESOURCE grades: This includes pay and allowance-wise and total in the job. It also saves small businesses the money and time
PLANNING - 1. Employment: HRP is affected by the emoluments-wise stock taking. RECRUITMENT - Recruitment of conducting face-to-face interviews immediately after the
employment situation in a country. In countries where there refers to the process of identifying, attracting, interviewing, preliminary screening step. A telephone interview also
is greater unemployment, there may be more pressure on selecting, hiring and onboarding employees. In other words, confirms whether the applicant has the requisite
the government to appoint more people. 2. Technical it involves everything from the identification of a staffing qualifications. 3. In-person interviews Face-to-face interviews
changes in society: Technology changes quickly, and new need to filling it. Depending on the size of an organization, take time, which is one of the reasons the applicant pool
people having the required knowledge are required for the recruitment is the responsibility of a range of workers. Larger should be narrowed by conducting preliminary screening and
company. 3. Organisational changes: Changes take place organizations may have entire teams of recruiters, while telephone interviewing. The recruiter is a conduit for
within the organization from time to time. For example, a others only a single recruiter. In small outfits, the hiring providing the hiring manager with the best-suited candidates,
company may diversify into new products or close down manager may be responsible for recruiting. In addition, many a process that streamlines the selection process. 4. Cultural
businesses in some areas. 4. Economic factors: How much organizations outsource recruiting to outside firms. fit selection In the third-round interview, often the decision
money is available for salaries, training, and equipment is the Companies almost always recruit candidates for new round, the hiring manager asks questions that will help him
most immediate concern in human resource planning. 5. positions via advertisements, job boards, social media sites, determine which candidate fits the organisational culture.
Social factors: Social factors may influence the organization’s and others. Many companies utilize recruiting software to Qualifications aside, an important factor in the hiring decision
HR planning. There is a clear discrepancy of one social group. more effectively and efficiently source top candidates. is cultural fit. Cultural fit means the candidate’s values align
It’s a good idea to build in ways of opening up new Regardless, recruitment typically works in conjunction with, with the organisation’s values. It’s a subjective analysis, and
opportunities. 6. Technological factors: New technology or as a part of Human Resources. METHODS OF one that hiring managers can only attribute to being a gut
brings new skill requirements, so companies always need to RECRUITMENT – 1. Direct recruitment method: The campus feeling, not objective criteria. 5. Vetting candidates the
be aware of proficiencies and training needs when planning recruitment is a major part of recruitment carried out using vetting process consists of pre-employment matters, such as
human resources. 7. Legal factors: New products and services direct method. The organization sends a representative from background checks and drug testing. Even small businesses
also may require recruiting highly skilled employees or HRM department in educational institutes to interact with should invest in the time and expense of background checks
training existing employees to meet the need. HR managers potential candidates. The candidates who are seeking for jobs — doing so can reduce the likelihood of hiring mistakes.
must keep themselves up to date and have an employment are explained about the job vacancy in the organization and Background checks verify information provided by the
law specialist available to consult if necessary. 8. the skills which are required to perform the job. The candidate and are an exercise in due diligence. SELECTION
Environmental factors: Environmental factors might include representative interacts with the candidates with the help of
where the business is located about finding sufficient placement cells of the institutions. 2. Indirect recruitment TESTS AND ITS IMPORTANCE - A selection test is a
appropriate staff or changes to the environment that mean a method: In the indirect method of recruitment the systematic and standardized procedure of sampling human
need for more or fewer employees. 9. Labour market: The organization use the advertisement channel such as news behavior in order to obtain qualified applicants for
labor market comprises people with skills and abilities that papers, radio, job sites, radio, television, magazines and organizational activities.It is used to assess the ability,
can be tapped when the need arises. Although in many 3rd professional journals to reach the potential candidates. The aptitude and personality of prospective candidates. Selection
countries with surplus labor, there is a shortage of skilled advertisement provides information about the job test is conducted in order to select a right person for the right
people. PROCESS OF HRP – 1. Analysing Organizational requirement, the range of salary offered, the type of job (full job who will be capable of performing organizational
Objectives: The objective to be achieved in future in various time or part time) and job location. The candidates who are activities if hired. Selection test is a device that reveals the
fields such as production, marketing, finance, expansion and interested in the job apply for it and share their resume with information about the candidate which is not obtained
sales gives the idea about the work to be done in the the organization. 3. Third party recruitment method: The through other steps of selection. It screens the employee's
organization.2. Inventory of Present Human Resources: From third party method of recruitment includes the helping hands ability, knowledge, and decides whether he/she can perform
the updated human resource information storage system, the which are outside the organization. The Recruitment well in the organization. 1. Selection test avoids biases in the
current number of employees, their capacity, performance Consultant or Employment Agencies, Search & Select selection procedure. 2. This test helps to minimize the cost
and potential can be analysed. To fill the various job Companies, Employee Referral, Voluntary Organization, Data and time to be taken by selection procedure. 3. Selection test
requirements, the internal sources. 3. Forecasting Demand Banks, Trade Unions and Labor Contractors are different can provide the information about the qualities and potential
and Supply of Human Resource: The human resources of the prospective employees which cannot be known
through other methods including personal interviews. These tool or due to adverse business condition by the organisation handy to determine the hidden potential of employees. This
tests also help for the promotion of the potential candidates. 2. Voluntary demotion: If an employee requests the method focuses on analyzing an employee’s future
4. This test helps to estimate the candidate’s ability, organisation to lower his work load so that he can manage his performance rather than their past work. These appraisals
knowledge, and other proficiency. 5. This test provides the personal life, it is the case of voluntary demotion. Reasons for are used to analyze seven major components of an
guideline for reference evaluation. 6. This test compares demotion  Inadequacy on the part of the employees in employee’s performance such as interpersonal skills,
different candidates on the basis of skills, knowledge and terms of job performance, attitude and capability. It happens cognitive abilities, intellectual traits, leadership skills,
special abilities possessed by them. 7. This test provides a when an employee finds it difficult to meet job requirement personality traits, emotional quotient, and other related
basis for selecting the most likely candidate as per the standards, following his promotion.  Demotion may result skills. 6. Human-Resource (Cost) Accounting Method :
requirement of job specifications. 8. Selection tests are a from organisational staff reductions. Due to adverse business Human resource (cost) accounting method analyses an
standardized and unbiased method of selecting the conditions, organisations may decide to lay off some and employee’s performance through the monetary benefits
candidate. Thus a person who is not selected on the basis of downgrade some jobs.  Demotions may be used as he/she yields to the company. It is obtained by comparing the
test cannot argue for the partiality in the selection process. disciplinary tools against errant employees.  If there is a cost of retaining an employee (cost to company) and the
Impartiality is very important for organizations like the public mistake in staffing i.e., a person is promoted wrongly.  monetary benefits (contributions) an organization has
sector. When, because of a change in technology, methods and ascertained from that specific employee. EMPLOYEE
practices, old hands are unable to adjust or when employees TRAINING - Employee training is a program that is designed
INTERVIEWS - The interview is a formal meeting between because of ill health or personal reasons, cannot do their job to increase the technical skills, knowledge, efficiency, and
two people (Interviewer and interviewee). The interview is properly. value creation to do any specific job in a much better way.
conducted to ask questions and obtain information from the Employee training program is periodical and given at regular
interviewee. An Interviewer is the one who asks questions PERFORMANCE ASSESSMENT &HUMAN RESOURCE intervals, it is never continuous. Employee training increases
and an interviewee is who answers the questions. I The DEVELOPMENT - PERFORMANCE APPRAISAL - The term the needed skill set and helps in development of an
interview is a formal meeting between two people performance appraisal refers to the regular review of an employee as well as overall growth of the organization.
(Interviewer and interviewee). The interview is conducted to employee's job performance and overall contribution to a
ask questions and obtain information from the interviewee. company. Also known as an annual review, performance IMPORTANCE OF EMPLOYEE TRAINING - 1. Improves morale
An Interviewer is the one who asks questions and an review or evaluation, or employee appraisal, a performance of employees- Training helps the employee to get job security
interviewee is who answers the questions. VIRTUAL appraisal evaluates an employee’s skills, achievements, and and job satisfaction. The more satisfied the employee is and
INTERVIEWS - A virtual interview is an interview that takes growth, or lack thereof. Companies use performance the greater is his morale, the more he will contribute to
place remotely, sometimes over the phone, but often using appraisals to give employees big-picture feedback on their organizational success and the lesser will be employee
technology like video conferencing and other online work and to justify pay increases and bonuses, as well as absenteeism and turnover. 2. Less supervision- A well trained
communication platforms. Virtual interviews are often termination decisions. They can be conducted at any given employee will be well acquainted with the job and will need
conducted much the same way as face-to-face interviews. time but tend to be annual, semi-annual, or quarterly. A less of supervision. Thus, there will be less wastage of time
Virtual communication requires special considerations and performance appraisal is a regular review of an employee's and efforts. 3. Fewer accidents- Errors are likely to occur if
adjustments due to the limited ability to read body language job performance and contribution to a company. Companies the employees lack knowledge and skills required for doing a
and facial expressions. PLACEMENT - Placement refers to the use performance appraisals to determine which employees particular job. The more trained an employee is, the less are
process of connecting the selected person and the employer have contributed the most to the company’s growth, review the chances of committing accidents in job and the more
in order to establish an ongoing employment relationship. progress, and reward high-achieving workers. PROCESS OF proficient the employee becomes. 4. Chances of promotion-
Placement refers to the process of connecting the selected PERFORMANCE APPRAISAL – 1. Establishing performance Employees acquire skills and efficiency during training. They
person and the employer in order to establish an ongoing standards : The first step in the process of performance become more eligible for promotion. They become an asset
employment relationship. In this step the employee is given appraisal is the setting up of the standards which will be used for the organization. 5. Increased productivity- Training
the activities he/she needs to perform and is told about to as the base to compare the actual performance of the improves efficiency and productivity of employees. Well
his/her duties. INDUCTION/ORIENTATION - Induction employees. This step requires setting the criteria to judge the trained employees show both quantity and quality
basically refers to welcoming a new employee in the performance of the employees as successful or unsuccessful performance. There is less wastage of time, money and
organization. This process officially introduces a fresh recruit and the degrees of their contribution to the organizational resources if employees are properly trained. TRAINING NEED
in the organization so that they formally take charge of their goals and objectives. 2. Communicating the standards : ASSESSMENT/IDENTIFICATION ( TNA/TNI) - A training needs
position. In this process, the newcomers are provided an Once set, it is the responsibility of the management to assessment (TNA) - is an assessment process that companies
opportunity to learn about the organization and get to known communicate the standards to all the employees of the and other organizations use to determine performance
their coworkers as well as the workplace. The induction organization. The employees should be informed and the requirements and the knowledge, abilities and skills that their
process is usually of a short duration and may be carried out standards should be clearly explained to the employees. 3. employees need to achieve the requirements. There are
on the day the employee joins the organization. The Measuring the actual performance : The most difficult part of three key areas that are considered accurate assessors of
employee is explained the main things that he/she needs to the Performance appraisal process is measuring the actual those needs: -  Skill proficiency of employees  Employees'
know about the organization so that they can quickly adjust performance of the employees that is the work done by the frequency of skill usage  Level of employees' skills crucial to
to the new settings.- The orientation process is carried out to employees during the specified period of time. It is a job performance - One of the outputs of the training needs
assist the new employees in adjusting to their position, continuous process which involves monitoring the assessment is a list of who needs what kind of training. TNA
department, responsibilities and the work environment. This performance throughout the year. 4. Comparing actual aims to answer some familiar questions: why, who, how,
process is more formal in nature and extends over a longer performance with desired performance : The actual what and when. - Training need identification - is a tool
time period as organizations spend a few weeks or often, performance is compared with the desired or the standard utilized to identify what educational courses or activities
even a month on the orientation of their new employees. In performance. The comparison tells the deviations in the should be provided to employees to improve their work
the orientation period, the employee will be explained about performance of the employees from the standards set. The productivity. Here the focus should be placed on needs as
the assignments allocated to them, their team members and result can show the actual performance being more than the opposed to desires of the employees for a constructive
the different systems and processes of the organization.. desired performance or, the actual performance being less outcome. Inorder to emphasize the importance of training
TRANSFER - Transfer is a process of placing employees in than the desired performance depicting a negative deviation need identification we can focus on the following areas:- •
positions where they are likely to be more effective or where in the organizational performance. 5 . Discussing results To pinpoint if training will make a difference in productivity
they are to get more job satisfaction. In transfers, there is no [Feedback] : The result of the appraisal is communicated and and the bottom line. • To decide what specific training each
change in the responsibility, designation, status or salary. It is discussed with the employees on oneto-one basis. The focus employee needs and what will improve his or her job
a process of employee’s adjustment with the work, time and of this discussion is on communication and listening. The performance. • To differentiate between the need for
place. Transfer may also be made as a disciplinary action. results, the problems and the possible solutions are discussed training and organizational issues and bring about a match
Objectives of transfer  To meet or fulfill organizational with the aim of problem solving and reaching consensus. The between individual aspirations and organizational goals.
needs  To satisfy employee needs  To adjust the workforce feedback should be given with a positive attitude as this can EVALUATION OF TRAINING - Training evaluation can be
 To reduce monotony and to make the employees versatile have an effect on the employees’ future performance. defined as any attempt to obtain information (feedback) on
 For effective use of employees  To punish Employees  To METHODS OF PERFORMANCE APPRAISAL - 1. Management the effects of training program and to assess the value of
give the relief to the employees  To improve employees by Objectives (MBO) : Management by objectives (MBO) is training in the light of that information for improving further
background by placing them in different jobs of various the appraisal method where managers and employees training. Evaluation of training can be viewed as a method of
departments and units. PROMOTION: It refers to the upward together identify, plan, organize, and communicate measuring change in knowledge, skills, attitudes, job
movement of an employee from his currect job position to objectives to focus on during a specific appraisal period. After performance, costs and the quality of the training facilities. -
another that is higher in pay, responsibility and hierarchy setting clear goals, managers and subordinates periodically  The evaluation enables the effectiveness of an investment
within an organisation. Promotion has an inbuilt motivational discuss the progress made to control and debate on the in training to be appraised which can help to justify
value i.e. it elevates the status and power of an employee feasibility of achieving those set objectives. 2. 360-Degree expenditure on future programmes.  It allows the
within an organisation. Types of promotion 1. Horizontal: It Feedback : 360-degree feedback is a multidimensional effectiveness of differing approaches to be compared.  It
involves movement of employee from its current job position performance appraisal method that evaluates an employee provides feedback for the trainers about their performance
to another job which is higher in pay and responsibility and using feedback collected from the employee’s circle of and methods.  It enables improvements to be made, either
designation, 2. Vertical: It involves movement of employee influence namely managers, peers, customers, and direct on the next occasion, or if the evaluation is ongoing, as the
from its current job position to another which is higher in reports. This method will not only eliminate bias in training proceeds.  Recording learning achievements can be
pay, status, responsibility, designation an job classification 3. performance reviews but also offer a clear understanding of motivational for learners.  The evaluation indicates to what
Dry promotion: It refers to an increase in responsibilities and an individual’s competence. 3. Assessment Centre Method : extent the objectives have been met and therefore whether
status of the employee without any increase in pay or other The concept of assessment centre was introduced way back any further training needs remain. TRAINING VS
financial benefits 4. Open/Closed: When a company in 1930 by the German Army but it has been polished and DEVELOPMENT - Training: Training is a process in which the
announces vacancies and opens the job position to all tailored to fit today’s environment. The assessment centre trainees get an opportunity to learn the key skills which are
employees in an organisation, they have a chance of being method enables employees to get a clear picture of how required to do the job. Learning with earning is known as
selected for that job, it is an open promotion. A closed others observe them and the impact it has on their training. It helps the employees to understand the complete
promotion is, when an organisation does not announce any performance. 4. Behaviorally Anchored Rating Scale (BARS) : job requirements. Training also helps the employees to
vacancies and the job position is not open to all employees of Behaviorally anchored rating scales (BARS) bring out both the change the conduct towards their superior, subordinates and
the organisation. DEMOTION: It is the downward movement qualitative and quantitative benefits in a performance colleagues. It helps to groom them for their prospective jobs.
of an employee in an organisation’s hierarchy with lower appraisal process. BARS compares employee performance Development: The training for the top level employees is
status and pay. It is a downgrading process where the with specific behavioral examples that are anchored to considered as development, also known as management or
employee suffers from emotional and financial loss in terms numerical ratings. Each performance level on a BAR scale is executive development. It is an on-going systematic
of rank, power, status, pay etc. Types of demotion 1. anchored by multiple BARS statements which describe procedure in which managerial staff learns to enhance their
Compulsory demotion: It involves lowing of job title, common behaviors that an employee routinely exhibits. 5. conceptual, theoretical knowledge. It helps the individual to
authority, status or salary of an employee as a disciplinary Psychological Appraisals : Psychological appraisals come in bring efficiency and effectiveness in their work performances.
MANAGEMENT DEVELOPMENT - “Executive or management Thomas E. Hitten was the first to originate factor comparison purchase shares in the company under certain circumstances.
development is a planned process of learning and growth method of job evaluation. This method determines the They are sometimes offered as an alternative to cash
designed to bring behavioural change among the executives.” relative rank of the jobs is evaluated with the monetary scale. compensation. o hourly basis depending on the hours they
It is continuous process of learning. It implies that there will It is often used in evaluating managing administrative and clock in. WAGE DETERMINATION- Wage determination is a
be a change in knowledge and behavior of the individuals white-collared jobs. It is essentially a combination of the complex process. It shows the relationship between the value
undergoing development programme. The employee will be ranking and point systems. BASICS OF COMPENSATION - of the job and the average wage paid for this job. It is a two-
able to perform his present job better and will increase his Compensation refers to the remuneration that an employee dimensional graph on which job evaluation points for key
potential for future work. PROCESS OF MANAGEMENT receives in return for his/her services to the organization. It is jobs are plotted against actual amounts paid or against
DEVELOPMENT - 1. Identifying Development Programmes: a comprehensive term which includes everything an desired level. - The process of determining wages involves a
First, an organization has to critically examine the employee receives in return for his work such as wages, series of interrelated steps. They are -  Job Analysis  Job
organization’s developmental needs, present as well as salaries, allowances, benefits and services. The term Evaluation  Job Design  Job Description  Job Assessment 
future. Then, it should decide on what types of compensation refers to reimbursement, disbursement of Wage Survey  Wage Curve  Group Similar Jobs into Pay
managers/executives are needed to achieve such needs. 2. incentives, and a strategic issue with regards to salary and Grades  Price Each Pay Grade  Fine-Tune Pay Rates 
Appraisal of Current Pool of Management Talent: The wage administration. Direct financial payments include pay in Conduct the Salary Survey  Relevant Organisational
performance appraisal of present executives shows the the form of salary, wages, incentives, commissions, and Problems  Wage Administration Rules  Explaining about
respective performance of each executive in the current bonuses. Indirect financial payments are given in the form of Wage and Salary Programme to the Employees. WAGE
position. This discloses the strength and weakness of the insurances. TYPES OF COMPENSATION - 1. Direct THEORIES - 1. Wages fund theory: This theory was
existing executives. 3. Defining Parameters: Parameters for Compensation: Direct compensation is a financial (or developed by Adam Smith (1723-1790). His theory was based
development needs to be identified in the light of overall monetary) form of compensation. Here are the four main on the basic assumption that workers are paid wages out of a
developmental needs. These parameters need to be defined types of direct compensation. They are; - i. Hourly: Hourly pre-determined fund of wealth. This fund, he called, wages
in terms of various skills required at different levels of the wages are often provided to unskilled, semi-skilled, fund created as a result of savings. According to Adam Smith,
career for a manager. 4. Inventory of Executives Manpower: temporary, part-time, or contract workers in exchange for the demand for labour and rate of wages depend on the size
Inventory of executive’s age, education, experience, health their time and labor. ii. Salary: Annual salaries are typically of the wages fund. Accordingly, if the wages fund is large,
record, psychological test result and performance appraisal provided to most full-time employees or skilled employees wages would be high and vice versa. 2. Subsistence theory:
data has to be prepared. An analysis of the inventory and those who fill management positions. A salary often This theory was propounded by David Recardo (1772- 1823).
discloses the strength and weakness of executives in certain indicates that the organization has invested in this employee According to this theory, “The labourers are paid to enable
functions relative to the future needs of the organization. 5. for the long-term future. iii. Commision: Commission is a them to subsist and perpetuate the race without increase or
Developing Executive Development Programmes: This common form of compensation provided to employees in diminution”. This payment is also called as ‘subsistence
programmes should be tailored to address the deficiency of sales roles. It will usually be based on a predetermined quota wages’. The basic assumption of this theory is that if workers
executives. The individual differences like age, physique, or target. The higher the quota reached, the higher the are paid wages more than subsistence level, workers’ number
emotional intelligence, intelligence quotients, etc., should be commission will be. iv. Bonuses: Companies often offer will increase and, as a result wages will come down to the
factored in designing the programme. 6. Conducting bonuses to employees based on yearend business results or subsistence level. 3. Behavioural theory: Based on research
Development Programmes: The organization has to choose the individual meeting their set goals. Sometimes, the studies and action programmes conducted, some behavioural
appropriate programmes like leadership courses, soft-skill decision is at the manager’s discretion. Bonuses can be paid scientists have also developed theories of wages. Their
development, sensitivity training, team building, problem- annually, quarterly, or even after the completion of each theories are based on elements like employee’s acceptance
solving, management games and so on to address the needs project. 2. Indirect Compensation: It is still a financial form of to a wage level, the prevalent internal wage structure,
of the executives relative to the current and future needs of compensation since it has a financial value. However, employee’s consideration on money or’ wages and salaries as
the organization. 7. Programme Evaluation: Since the employees do not directly receive it in cash form. That’s why motivators. CONCEPTS OF WAGES - MINIMUM WAGES: A
management programme involves investment of money, certain types of indirect compensation are viewed as minimum wage is one which has to be paid by an employer to
time and energy resources, top management intends to monetary, while others are deemed non-monetary. This his workers irrespective of his ability to pay. According to the
measure the impact of the programme. The pre and post often varies between organizations. Some examples of Fair Wage Committee, “Minimum wage is the wage which
programme survey would help in measuring its effectiveness indirect compensations are; - i. Equity package: Equity as must provide not only for the bare sustenance of life, but for
and on deciding the continuity of various programmes. part of a compensation package essentially means the the preservation of the efficiency of the workers. FAIR
WAGES AND SALARY ADMINISTRATION - JOB EVALUATION - employee is offered equity (ownership) in the company, WAGES: The Government of India appointed a Fair Wages
A job evaluation is a systematic way of determining the either through shares of stock or the option to buy such Committee in 1948 to determine the principles on which fair
value/worth of a job in relation to other jobs in an shares. ii. Stock options: This form of compensation entitles wages should be based and to suggest the lines on which
organization. It tries to make a systematic comparison employees to purchase a set number of shares at a fixed those principles should be applied. The concept of fair wage
between jobs to assess their relative worth for the purpose of price after a certain period. This is different from an equity is linked with the capacity of the industry to pay. LIVING
establishing a rational pay structure. PROCESS OF JOB package because the employee will not have any ownership WAGES: According to the report of Fair Wage Committee,
EVALUATION - 1. Gaining acceptance: Before undertaking in the company. iii. Benefits: Typical employee benefits “The living wage should enable the male earner to provide
job evaluation, top management must explain the aims and usually include health insurance, life insurance, retirement for himself and his family not merely the bare essentials of
uses of the program to the employees and unions. To plans, disability insurance, legal insurance, and pet insurance. food, clothing and shelter, but also a measure of frugal
elaborate on the program further, oral presentations could 3. Fixed Compensation: Fixed compensation refers to an comfort including education for children, protection against
be made. Letters, booklets could be used to classify all employee's regular gross salary or wages. This topic describes ill health, requirements of essential social needs and a
relevant aspects of the job evaluation program. 2. Creating a the components that must be set up before you can create a measure of insurance against the more important
job evaluation committee: A single person can’t evaluate all fixed compensation plan and enroll employees. The various misfortunes including old age.” INDUSTRIAL RELATIONS -
the key jobs in an organization. Usually, a job evaluation components of fixed compensation are; i. Compensation Industrial relations may be defined as the relations and
committee consisting of experienced employees, union levels: It can be used to set compensation for various jobs, to interactions in the industry particularly between the labour
representatives, and HR experts is created to set the ball help guarantee that the employees who hold those jobs are and management as a result of their composite attitudes and
rolling. 3. Finding the jobs to be evaluated: Every job need paid fairly. On the Compensation levels page, we can set up approaches in regard to the management of the affairs of the
not be evaluated. This may be too taxing and costly. Certain the compensation levels that are required for each step, industry, for the betterment of not only the management and
key jobs in each department may be identified. While picking grade, and band plan. ii. Reference points: Reference points the workers but also of the industry and the economy as a
up the jobs, care must be taken to ensure that they represent are the columns in the grid that define the compensation whole. The term industrial relations explains the relationship
the type of work performed in that department. 4. Analyzing ranges for each level. The compensation level is the row in between employees and management which stem directly or
and preparing a job description: This requires the preparation the grid. Typical reference points for a plan of the grade type indirectly from unionemployer relationship. OBJECTIVES OF
of a job description and also an analysis of job needs for are a minimum, a midpoint, and a maximum. iii. IR -  Establish and foster sound relationship between
successful performance . 5. Selecting the method of Compensation grids: On the Compensation grids page, define workers and management by safeguarding their interests. 
evaluation: The most important method of evaluating the information about the grid. For example, specify what the Avoid industrial conflicts and strikes by developing mutuality
jobs must be identified now, keeping the job factors and grid designed to be used for, what type of plan it will be used among the interests of concerned parties.  Keep, as far as
organizational demands in mind. 6. Classifying jobs: The with, and which reference points or columns are required in possible, strikes, lockouts and gheraos at bay by enhancing
relative worth of various jobs in an organization may be the grid. iv. Pay frequencies: Pay frequencies are used to the economic status of workers.  Provide an opportunity to
found out after arranging jobs in order of importance using define how an employee's wage or salary is being specified. the workers to participate in management and decision
criteria such as skill requirements, experience needed under SALARY VS WAGES -  Salary: Salary is the cost of acquiring making process.  Raise productivity in the organisation to
which conditions job is performed, type of responsibilities to or retaining human resources that are deployed by the curb the employee turnover and absenteeism.  Avoid
be shouldered degree of supervision needed, the amount of organization for running the business. A salary is generally unnecessary interference of the government, as far as
stress caused by the job, etc. Weights can be assigned to offered to whitecollar employees like Managers, Directors, or possible and practicable, in the matters of relationship
each such factor. METHODS OF JOB EVALUATION - 1. highly skilled and licensed professionals. The amount is between workers and management.  Establish and nurse
Ranking System: The ranking method is one of the simplest dependent on the skillsets they offer and what value they industrial democracy based on labour partnership in the
methods of job evaluation. Under this system, the job raters add to the organization. Salary also acts as a benchmark for sharing of profits and of managerial decisions.  Socialise
rank one job against another without assigning point values. the market to compare the competitiveness and demand in industrial activity by involving the government participation
Jobs within the organization are arranged from the most the job market.  Wages: Wages are generally paid as an employer. PARTIES IN IR – 1. Primary Parties - A.
difficult to the simplest or in the reversed order. It does not depending on the amount of time worked, mostly it is hourly Employees :  Employees share their views, suggestions,
measure the value of jobs but establishes their ranks only. 2. and hence the term hourly worker. The type of job which is ideas with the management to improve the business
Job classification or grading method: Job grading or job paid hourly or wage driven are unskilled and lower level; jobs operations and become a part of organizational
classification is slightly more sophisticated than job ranking like a security guard, parking garage guard, librarian, and so decisionmaking, and ensuring the betterment of the working
but still not very precise. It begins with an overall on are paid on an h Variable Compensation: Variable conditions. B. Employers :  Providing a good work
classification of all jobs based on common sense, skill, compensation is pay given to an employee based on the environment for the employees and taking strategic decisions
responsibilities, and experience. The job structure is divided results they produce. It is usually offered on top of a fixed such as mergers, acquisitions, or shutting down of the
into several classes. according to this system, the clerks may salary and comes in various forms. - o Commission: This is a organization, etc.  Motivating the employees to give their
be put into one class, supervisors in a higher class and higher portion of revenue given to the sales employee as part of an best and gaining their trust and commitment. C.
executives in the top class. 3. Points rating system: The point official compensation plan. o Profit-Sharing Plan: This plan Government : Government started regulating the industrial
method is more sophisticated than the ranking and gives employees a portion of the company’s quarterly or relations through labour courts and tribunals, for the
classification methods. This method is analytical because it annual profit in addition to their base salary. o Bonus: This is following reasons:  Safeguarding the interest of both the
breaks down jobs into various compensable factors and an extra lump sum given to employees based on the parties.  Ensuring that both the employer and the employee,
places weights or points on them. A compensable factor is company’s performance. It’s often an unspecified amount on abide by the legal terms and conditions. 2. Other Parties – A.
used to identify a job value that is commonly present an annual basis and will vary depending on the year’s results. Employers’ Association :  Employers Association refers to an
throughout a group of jobs. 4. Factor comparison system: o Stock Option: This option gives employees the right to authoritative body, formed to protect the interest of the
industrial owners.  They represent the owners in collective collective bargaining is made up of two words, ‘collective’ – Having collected all the facts and figures relating to the
bargaining with the employees or government, national which means a ‘group action’ through representation and grievance, the next step involved in the grievance procedure
issues, and provide insight into employee relations in an ‘bargaining’, means ‘negotiating’, which involves proposals is to establish and analyse the cause that led to grievance .
organization. B. Trade Unions :  Trade Unions mean when and counter-proposals, offers and counter-offers. TYPES OF OPEN DOOR VS STEP LADDER TECHNIQUE - Grievance
the workers unite together to form an association and elect a COLLECTIVE BARGAINING - 1. Distributive bargaining: procedure is a formal communication between an employee
representative among themselves and to raise their demands Distributive bargaining is defined as a negotiation process by and the management designed for the settlement of a
in front of the management.  They demand better working which one party benefits at the others expense. This usually grievance. The grievance procedures differ from organization
conditions and higher job security for the workers by refers to the redistribution of income in the form of higher to organization. - 1. Open door policy 2. Step-ladder policy -
safeguarding the interest of the employees by demanding wages, higher bonuses, or higher financial benefits. Simply Open door policy: Under this policy, the aggrieved employee
control over the decision-making at various levels. C. Courts put; anything related to the transfer of money. 2. Integrative is free to meet the top executives of the organization and get
and Tribunals : The judiciary includes the ‘courts’ to resolve bargaining: Integrative bargaining is whereby both sides aim his grievances redressed. Such a policy works well only in
the legitimate conflicts and the ‘judicial review’ to administer to benefit in what is seen as ‘win-win’ bargaining. Both small organizations. However, in bigger organizations, top
the justice of the constitution. These courts and tribunals play parties may bring together a list of demands by which an management executives are usually busy with other
an essential role in the settlement of industrial disputes by agreement is reached that benefits both parties. 3. concerned matters of the company. Moreover, it is believed
eliminating the possibilities of Judicial flaws, conflicting Productivity bargaining: Productivity bargaining involves both that open door policy is suitable for executives; operational
judgment, poor evaluation of penalty, and Confusing terms parties negotiating around productivity and pay. So unions employees may feel shy to go to top management. Step
and conditions. D. International Labor Organization (ILO) : may suggest that higher salaries would boost productivity. ladder policy: Under this policy, the aggrieved employee has
International Labor Organization aimed to look into matters However, this is unknown to the business. So target- to follow a step by step procedure for getting his grievance
like Worker’s compensation, employee’s work duration and orientated bonuses may be suggested, or new ways of redressed. In this procedure, whenever an employee is
days, women employment, employee’s safety, security, and improving the process. 4. Composite bargaining: Composite confronted with a grievance, he presents his problem to his
medical facilities with maternity protection. E. Human bargaining refers to a negotiation that focuses on a number immediate supervisor. If the employee is not satisfied with
Resource Function : The human resource department or of elements that are not related to pay. They are generally superior’s decision, then he discusses his grievance with the
team acts as a mediator between the organization and its related to employee welfare and job security. For instance, it departmental head. The departmental head discusses the
employees for dealing with personnel issues and conflicts. HR covers factors such as working conditions, policies, problem with joint grievance committees to find a solution.
professionals address the disputes at the initial level, act as a recruitment, and disciplinary processes. 5. Concessionary However, if the committee also fails to redress the grievance,
change agent by bringing a mental revolution and perform bargaining: Concessionary bargaining is based on unions then it may be referred to chief executive. If the chief
the role of an administration expert and a strategic partner. giving back previous benefits to the employer. For instance, executive also fails to redress the grievance, then such a
trade unions may agree to lower wages in return for job grievance is referred to voluntary arbitration where the
TRADE UNIONS IN INDIA - Labour unions or trade unions are security. award of arbitrator is binding on both the parties.
organizations formed by workers from related fields that
work for the common interest of its members. They help
workers in issues like fairness of pay, good working
environment, hours of work and benefits. They represent a PROCESS OF COLLECTIVE BARGAINING – 1. Preparation: At
cluster of workers and provide a link between the the very first step, both the representatives of each party
management and workers. The purpose of these unions is to prepares the negotiations to be carried out during the
look into the grievances of wagers and present a collective meeting. Each member should be well versed with the issues
voice in front of the management. Hence, it acts as the to be raised at the meeting and should have adequate INDUSTRIAL DISPUTES - An industrial dispute is defined as a
medium of communication between the workers and knowledge of the labor laws. 2. Discuss: Here, both the conflict or a difference in opinion between management and
management. Workers' Organizations -  Bharatiya Mazdoor parties decide the ground rules that will guide the workers regarding employment. It is a disagreement between
Sangh (BMS)  Indian National Trade Union Congress (INTUC) negotiations and the prime negotiator is from the an employer and employees representative i.e. trade union.
 All India Trade Union Congress (AITUC)  Hind Mazdoor management team who will lead the discussion. Also, the The issue of disagreement is usually pay or other working
Sabha (HMS)  Centre of India Trade Unions (CITU)  All India issues for which the meeting is held, are identified at this conditions. DISPUTE SETTLEMENT MACHINERY – 1.
United Trade Union Centre (AIUTUC) – formerly UTUC (LS)  stage. 3 Propose: At this stage, the chief negotiator begins Conciliation: Conciliation, a form of mediation refers to the
Self Employed Women’s Association (SEWA)  All India the conversation with an opening statement and then both act of making a passive and indirect effort in order to bring
Central Council of Trade Unions (AICCTU)  Labour the parties put forth their initial demands. This session can be two conflicting parties to a compromise. It is the “practice by
Progressive Federation (LPF)  United Trade Union Congress called as a brainstorming, where each party gives their which the services of a neutral party are used in a dispute as
(UTUC)  National Front of Indian Trade Unions – Dhanbad opinion that leads to arguments and counter arguments. 4. a means of helping the disputing parties to reduce the extent
(NFITU-DHN. PARTICIPATIVE MANAGEMENT - Participative Bargain: The negotiation begins at this stage, where each of their differences and to arrive at an amicable settlement of
Management refers to as an open form of management party tries to win over the other. The negotiation can go for agreed solution.” 2. Court of Inquiry: If there should be an
where employees are actively involved in organization’s days until a final agreement is reached. Sometimes, both the occurrence of the disappointment of the conciliation
decision making process. The concept is applied by the parties reach an amicable solution soon, but at times to settle procedure to settle a question, the administration can choose
managers who understand the importance to human intellect down the dispute the third party intervenes into the a Court of Inquiry to enquire into any matter associated with
and seek a strong relationship with their employees. negotiation in the form of arbitration or adjudication. 5. or significant to debate. 3. Voluntary Arbitration: On the
Participative Management can also be termed as ‘Industrial Settlement: This is the final stage of the collective bargaining disappointment of placation procedures, the conciliation
Democracy’, ‘Co-determination’, ‘Employee Involvement’ as process, where both the parties agree on a common solution officer may persuade the parties to refer the dispute to a
well as ‘Participative Decision Making’. The concept of to the problem discussed so far. Hence, a mutual agreement voluntary arbitrator wherein the arbitrator alludes to getting
employee participation in organization’s decision making is is formed between the employee and the employer which is the question settled since he is an autonomous individual
not new. However, the idea couldn’t gain that much to be signed by each party to give the decision a universal picked by the parties included commonly and willfully. 4.
popularity among organizations. METHODS OF WPM - 1. acceptance. EMPLOYEE DISCIPLINE AND GRIEVANCE – Adjudication: A definitive solution for the settlement of
Participation at the Board level:  He or she can prevail upon Discipline means the situation in which all the workers and industrial disputes is its reference to arbitration by a labour
top management not to take measures that would be employees follow the rules, regulations and procedure of the court or tribunals when conciliation fails to achieve a
unpopular with the employees.  He or she can guide the organization. A disciplined work force can meet the settlement with respect to the dispute or conflict. BIPARTITE
Board members on matters of investment in employee challenges of the organizations and contribute to the AND TRIPARTITE BODIES IN INDIA - Tripartite bodies involve
benefit schemes like housing, and so forth. 2. Participation organizational objectives in a better way. Discipline can pave employee, employer and Government. Bipartite committee
through ownership:  In many cases, advances and financial the way for co-operation among the task force and result in comprises of employer and employee. Tripartite committee
assistance in the form of easy repayment options are good human relations. Discipline is essential for the smooth includes committees on Conventions, steering committee on
extended to enable employees to buy equity shares. running in an organization and for the maintenance of wages, central implementation and evaluation machinery,
Examples of this method are available in the manufacturing industrial peace, which is very foundation of industrial Central Board of Worker’s Education and National
as well as the service sector.  Advantage: Makes the workers democracy. Grievance is the feeling of dissatisfaction among Productivity Council. Workers committee is an example for
committed to the job and to the organization.  Drawback: the employees, working in the organization. Grievance, Bipartite committee. This committee is represented by
Effect on participation is limited because ownership and whether real or imaginary, valid or invalid, genuine or false, is employer and employees. It is established through legislation.
management are two different things. 3. Participation a complaint affecting one or more workers within the Method of constitution of this committee is specified in the
through complete control:  Ensures identification of the organization. Dissatisfaction or discontent expressed by enactment. EMPLOYEE SEPARATION METHODS - 1.
workers with their organization.  Industrial disputes employees brought to the notice of management, it becomes Retirement: Retirement is the major cause of separation of
disappear when workers develop loyalty to the organization. grievance. SETTLEMENT OF GRIEVANCE - 1. Timely Action: employees from the organisation. It can be defined as the
 Trade unions welcome this type of participation. 4 . The first and foremost requisite in grievance handling is to termination of service of an employee on reaching the age of
Participation through Staff and Works Councils : Staff councils settle them immediately as and when they arise. Or say, superannuation. Retirement may be of two types: 
or works councils are bodies on which the representation is grievances need to be nipped in the bud. Sooner the Compulsory retirement  Voluntary retirement. 2.
entirely of the employees. There may be one council for the grievance is settled, lesser will be its effects on employees’ Resignation: Resignation is termination of service by an
entire organization or a hierarchy of councils. The employees employee by serving a notice, called ‘resignation’ on the
of the respective sections elect the members of the councils. performance. 2. Accepting the Grievance: The supervisor employer. Resignation may be voluntary or involuntary. 3.
5. Participation through Joint Councils and Committees: Joint should try to recognize and accept the employee grievance as Layoff: Layoff implies denial of employment to the employees
councils are bodies comprising representatives of employers and when it is expressed. It must be noted that acceptance for reasons beyond the control of employer. Breakdown of
and employees. This method sees a very loose form of does not necessarily mean agreeing with the grievance, it machinery, seasonal fluctuations in demand, shortage of
participation, as these councils are mostly consultative simply shows the willingness of the supervisor to look into power, raw materials, etc. 4. Retrenchment: Retrenchment
the complaint objectively and dispassionately to deal with the means permanent termination of an employee’s services for
bodies. 6. Participation through Job Enlargement and Job grievance. 3. Identifying the Problem: The grievance economic reasons. Retrenchment occurs on account of
Enrichment: Excessive job specialization that is seen as a by- expressed by the employee maybe at times simply surplus staff, poor demand for products, general economic
product of mass production in industries, leads to boredom emotionally, overtoned, imaginary or vague. The supervisor, slowdown, etc. 5. Dismissal: Dismissal is termination of
and associated problems in employees. Two methods of job therefore, needs to identify or diagnose the problem stated service of an employee as a punitive measure. This may occur
designing — job enlargement and job enrichment — are seen by the employee. 4. Collecting the Facts: Once the problem is either on account of unsatisfactory performance or
as methods of addressing the problems. COLLECTIVE identified as a real problem, the supervisor should, then, misconduct. Persistent failure on the part of employee to
BARGAINING - Collective bargaining is the process where a collect all the relevant facts and proofs relating to the perform up to the expectations or specified standard is
group of employees ‘collectively’ negotiate with the grievance. The facts so collected need to be separated from considered as unsatisfactory performance. INDUSTRIAL
employer. This is generally to negotiate pay, working the opinions and feelings to avoid distortions of the facts. It is DISPUTES ACT (1947) - The Industrial Disputes Act defines
conditions, benefits, and other factors regarding the useful to maintain the facts for future uses as and when "Industrial dispute" as a dispute or difference between
employees compensation package and rights. The term these are required. 5. Analysing the cause of the Grievance: workmen and employers or between workmen and
workmen, which is connected with employment or non-
employment or the terms of employment or with the
conditions of labour. Dismissal of an individual workman is
deemed to be an industrial dispute. Objectives of Indian
Industrial Disputes Act  To encourage good relations
between labor and industries, and provide a medium of
settling disputes through adjudicator authorities.  To provide
a committee for dispute settlement between industry and
labor with the right of representation by a registered trade
union or by an association of employers.  Prevent
unauthorized strikes and lockouts.  Reach out to labor that
has been laid-off, unrightfully dismissed, etc.  Provide labor
the right to collective bargaining and promote conciliation.
FACTORIES ACT (1948) - The Factories Act, 1948 is a social
legislation which has been enacted for occupational safety,
health and welfare of workers at work places. The objective
of the Act is to regulate the conditions of work in
manufacturing establishments coming within the definition of
the term 'factory' as used in the Act. Main features - 1.
Working hours . 2.. Health . 3. Welfare. 4. Safety. THE TRADE
UNION ACT (1926) - A trade union is such an organisation
which is created voluntarly on the basis of collective strength
to secure the interests of the workers. This act provides for
the registration of trade unions and in certain respects in
defining the law related to registered trade unions. Objective
 Workers organize themselves in the form of a union to
achieve the following goals  To improve the economic lot of
employees by securing for them better wages.  To secure
better working conditions for the workers.  To secure bonus
for the employees from the profit of the concern,  To resist
schemes of the management which reduce employment, e.g.,
rationalization and automation.  To secure welfare of
employees through group schemes which give benefit to
every employee.  To protect the interests of employees by
taking active participation in the management.