Shweta Nair_personnel Management

8/3/2019 Shweta Nair_personnel Management

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per so nne lma na g e me n t

Submitted By : Shweta Nair

Roll No : 29

PGD(HRM)


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Q1) Define Personnel Management. Write the Philosophy of Personnel Management.

In all organizations, there should be someone concerned with the welfare and performance ofpersons who are a part of the operation. When an individual or a team of individuals takes on this

task of seeing to programs and setting policies that impact everyone associated with the company,they are engaged in the process of personnel management.

Personnel Management is the administrative discipline of hiring and developing employees so thatthey become more valuable to the organization. It includes (1) conducting job analyses, (2)planning personnel needs, and recruitment, (3) selecting the right people for the job, (4) orienting

and training, (5) determining and managing wages and salaries, (6) providing benefits andincentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all

employees at all levels.

Personnel Management is an important branch in Management of any business enterprise. It holds

a key to all actions and successful management. It is also concerned with human and socialimplications of change in internal organization and methods of working and of economic and

social changes in the community. The main aim is to establish a better coordination between all the

members from top level management to down below the subordinates to have better cooperation,better focus to bring out innovative ideas, their objectives, understanding in the enterprise. Co-operative relationship is achieved within the enterprise by creating harmonious relations, genuine

consultation and participation and system of effective communication.

Personnel Management is the field of management which has to do with planning, organizing,

directing and controlling various operative functions of procuring, developing, maintaining andutilizing a labour force such that the :-

Objectives for which the company is established are attained economically and effectively. Objectives of all the levels of personnel are served to the highest possible degree.Objectives of the community are duly considered and served.

Personnel management should designed in such a way it will have the capability to respond to thechanges. Maintain a good relationship within the organization; meet the enterprise social and legal

responsibilities. Human relations have to be nurtured constantly in the enterprise. Only theenterprise, which is conscious of this need, can achieve their targets by efficiently handling their

available resources for a particular process.

The objectives of personnel management in any working organization are, to bring development ofindividuals, maintain a safe and effective environmental conditions, utilize the available resources,

to ensure job satisfaction among workers.

Characteristics of good personnel management are:

Stability, to appoint or replace key personnel executives with minimal lossFlexibility, capability to handle problems encountered within the enterprise. Simplicity, balancing the perfect line of relationship among the workers. Objectivity, feature of having definite objectives for all the levels or units in the enterprise.


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PHILOSOPHY OF PERSONNEL MANAGEMENT

Personnel actions in any company are guided by the philosophy which a company may profess for

dealing with people. Personnel philosophy may tend in many directions.

1. Labour may be viewed as a technical factor which more or less passively or actively resistsmanagerial leadership. Therefore it is necessary to mould, control and closely supervise the

people so that company goals may be achieved in a manner beneficial for individuals,groups and even the organization itself.

2. The modern view is that labour is not a commodity of change but a precious asset which

has inherent constructive potentials. These potentials may be utilized in an efficient mannerif the management has an enlightened attitude towards labour and encourages participative

management.

3. Management is getting work done by and through others.

FACTORS INFLUENCING MANAGEMENT PHILOSOPHY

Top management philosophyPersonnel management to some extent is based on experience, education and background of the

top management. It may or may not be stated. It is usually communicated by their actions andpermeate every level and department of the organization.

Changing organization

Fundamental changes occurring in the organization also influence personnel managementphilosophy. Such factors are

Dissatisfaction among the workers due to their getting such employment for which they are over

qualified. This not only affects the quality of the work but also compels the management to learnhow to motivate a better educated worker.

People are getting more interested in choosing a life style and career than just a job. This needs the

personnel philosophy should be changed as to make their career development

New changes in law require that no discrimination should be made in providing equal employmentopportunity on the basis of age, sex, caste, religion etc.

Influence of ones assumption about people

Personnel management philosophy is also influenced by the basic assumptions one make aboutpeople.i.e whether one believes in Theory X OR Theory Y of Mcgregor. Accordingly the

philosophy is formed.

The need to motivate peopleManagers get things done through others and therefore if the y cannot motivate employees to get

their job done, they are destined to fail as managers. So methods of motivation also influencemanagement philosophy.


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Q 2 )What are the Principles of Personnel Management?

Personnel Management is an important branch in Management of any business enterprise. It holdsa key to all actions and successful management. It is also concerned with human and social

implications of change in internal organization and methods of working and of economic andsocial changes in the community. The main aim is to establish a better coordination between all the

members from top level management to down below the subordinates to have better cooperation,

better focus to bring out innovative ideas, their objectives, understanding in the enterprise. Co-operative relationship is achieved within the enterprise by creating harmonious relations, genuineconsultation and participation and system of effective communication

People are to be dealt with as complete individuals

Persons are recruited because they posses the requisite technical, professional and other qualities.But they co-operate with one another with the group and wit the management is largely governed

by their personnel feelings, cultural and social attitudes, ethical standards and family background.These and technical factors should be programmed into organizational operations. The

management should be quick to understand hoe employees feel about contemplated workassignments, personnel policies and decision which affect their interests.

Employees should be made to feel worthwhile

Men do not live by bread alone. There is something other than money which motivated them towork towards organizational goals. Personal feeling of accomplishment, pride in ones work

harmonious relation with co-workers and co-operation with the management- all these factors needto be taken into consideration by the management if the efficiency and productivity of the

employees are to be maintained and increased

Fairness and JusticeThese should guide a management policies and actions. Fairness in dealing with his employees

would win for the employer the confidence of his employees.

Rewards should be earned not givenThe rewards to be given should commensurate with the efforts put in to win themSuch rewards

should be given to an employee because of what he has accomplished and not merely as a gift.

Supply employees with relevant information.An organization should have a properly developed two-way communication channel so that the

necessary information, instructions, orders and rules are passed on to employees and a properresponse is evoked.

Judge the strength or intelligence of the people properly

Knowledge of the strength of its employees will always bring management their co-operation. Ifproper opportunities are not made available to employees, resentment and frustration may result or

they may leave the organization or resort to coercion

Sell the personnel programmeBecause if employees are not made aware of it they will learn from some other source. The selling

of a programme should be done either orally or in writing.


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Equal wage for equal workAll the employees irrespective of their sex or community but doing similar type of work must bepaid equally and the wages paid must be adequate.

Set examples

Preaching alone will not bring the desired results. Actions are louder than words. Convince theemployees that the management eally does what it says or means.


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Q 3) Write in detailed manner with examples the Objectives of Personnel

Management.

Personnel Management is the field of management which has to do with planning, organizing,

directing and controlling various operative functions of procuring, developing, maintaining andutilizing a labour force such that the :-

Objectives for which the company is established are attained economically and effectively. Objectives of all the levels of personnel are served to the highest possible degree.Objectives of the community are duly considered and served

Personnel management should designed in such a way it will have the capability to respond to thechanges. Maintain a good relationship within the organization; meet the enterprise social and legal

responsibilities. Human relations have to be nurtured constantly in the enterprise. Only theenterprise, which is conscious of this need, can achieve their targets by efficiently handling their

available resources for a particular process.

The objectives of personnel management in any working organization are, to bring development

of individuals, maintain a safe and effective environmental conditions, utilize the availableresources, to ensure job satisfaction among workers. What are all the objective to be focused?

Social. Personnel. Enterprise. Union.Social objective is concerned about how the enterprise creates new employment opportunities, how

the productivity of the enterprise can be maximized, bring satisfaction to the work force, avoidanceof wastage of resources and promote a healthy relationship between the human and the social

welfare.

Personnel objectives specifies the needs of the members by providing job security, maximizing thedevelopment of the members, provide proper working environmental conditions to workers.

Enterprise objective is to bring a balance between demand and supply of the personnel andmaintain competent workers in the enterprise.

Union objective deals with formulation of personnel policies in consultation with unions and self-

discipline within the enterprise.

Financial and physical resources required for a particular process to be done, and the members ofthe organization. Personnel Management is responsible for both the enterprise operating system

and the workers.


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OBJECTIVES OF PERSONNEL MANAGEMENT.

1. To create and utilize an able and motivated workforce, to accomplish the basic organizationalgoals.

2. To establish and maintain sound organizational structure and desirable working relationships

among all the members of the organization.

3. To secure the integration of individual or groups within the organization by co-ordination of theindividual and group goals with those of the organization.

4. To create facilities and opportunities for individual or group development so as to match it withthe growth of the organization.

5. To attain an effective utilization of human resources in the achievement of organizational goals.

6. To identify and satisfy individual and group needs by providing adequate and equitable wages,

incentives, employee benefits and social security and measures for challenging work, prestige,

recognition, security, status.

7. To maintain high employees morale and sound human relations by sustaining and improving thevarious conditions and facilities.

8. To strengthen and appreciate the human assets continuously by providing training and

development programs.

9. To consider and contribute to the minimization of socio-economic evils such as unemployment,under-employment, inequalities in the distribution of income and wealth and to improve the

welfare of the society by providing employment opportunities to women and disadvantaged

sections of the society.

10. To provide an opportunity for expression and voice management.

11. To provide fair, acceptable and efficient leadership.

12. To provide facilities and conditions of work and creation of favorable atmosphere formaintaining stability of employment.


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Defining authority and responsibilityWhen an individual or a group is assigned activity the performance of that activity becomes theresponsibility and the authority to the people to carry out thr duties should be delegated.

Prescribing Authority Relationships

Superior Subordinate relationships and their authorities must be prescribed well in advance thatfacilitates overall working of the organization and performance can be evaluated according to the

standards effectively.


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Q5) What are the types of organization structure.

Organizational structure refers to the way that an organization arranges people and jobs so that its

work can be performed and its goals can be met. When a work group is very small and face-to-facecommunication is frequent, formal structure may be unnecessary, but in a larger organization

decisions have to be made about the delegation of various tasks. Thus, procedures are establishedthat assign responsibilities for various functions. It is these decisions that determine the

organizational structure.

Types of Organization Structure.

Formal and Informal Organisation Structure Vertical and Horizontal organizational structure Tall and Flat Organization Structure Line OrganizationLine and Staff Organization Functional OrganizationDivisional Organsiation

FORMAL ORGANISATION STRUCTURE

The formal organisation refers to the formal relationships of authority and subordination within a

company. The primary focus of the formal organisation is the position the employee/managerholds. Power is delegated from the top levels of the management down the organisation. Each

position has rules governing what can and cannot be done. There are rewards and penalties forcomplying with these rules and performing duties well.

Formal organization is a fixed set of rules of intra-organization procedures and structures. As such,

it is usually set out in writing, with a language of rules that ostensibly leave little discretion forinterpretation. In some societies and in some organization, such rules may be strictly followed; in

others, they may be little more than an empty formalism.

Reasons for the existence of the formal organization

To facilitate the accomplishment of the goals of the organization: In a formal organization

the work is delegated to each individual of the organization. He/She works towards theattainment of definite goals, which are in compliance with the goals of the organisation.

To facilitate the co-ordination of various activities: The authority, responsibility andaccountability of individuals in the organization is very well defined. Hence, facilitating the

co-ordination of various activities of the organization very effectively. To aid the establishment of logical authority relationship: The responsibilities of theindividuals in the organization are well defined. They have a definite place in theorganization due to a well defined hierarchical structure which is inherent in any formal

organization. Permit the application of the concept of specialization and division of Labour, division of

work amongst individuals according to their capabilities helps in greater specializations anddivision of work.


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Characteristics of a formal organisation

Well defined rules and regulation Arbitrary structure

Determined objectives and policies

Status Symbol Limitation on the activities of the individual

Strict observance of the principle of Co-ordination

INFORMAL ORGANISATION STRUCTURE

The informal organization refers to the network of personal and social relations that develop

spontaneously between people associated with each other. The primary focus of the informalorganization is the employee as an individual person. Power is derived from membership of

informal groups within the organization. The conduct of individuals within these groups isgoverned by norms - that is, social rules of behaviour. When individuals break these norms, other

members of the group impose sanctions on them. Clearly, the informal structure can be either

beneficial or detrimental to the functioning of the company or both. People who work in anorganization are only human and their effectiveness may depend on their personal relations withthose around them. An obvious illustration is that if a manager is aware of a personality clash

between employees he must respond.

An informal organization is one which is not reliant on a hierarchical structure, typical of large-

scale companies. It is not typical for an entire organization to be informal, as this could causeproblems which are discussed in a moment, but formal organisations do tend to have informal ones

within them.

Informal organsations have very loose structures. People can become members freely and

sometimes spontaenously; relationships are undefined and the sharing of responsibility andinvolvement of members will vary considerably.

The advantages of informal organisations are that they create strong relationships between theirmembers. There is no theoretical "boss" and this makes all members feel like a larger part of the

organisation as a whole.

The disadvantages, which explain why there are few purely informal organisations, are that a lack

of structure can result in a reduction in professionalism. The company cannot benefit fromdifferent people managing different areas easily. Finally, the members cannot look to the future-

after all, with no-one above them, they cannot look for promotion and therefore find themselves

stuck with the same job.


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VERTICAL ORGANIZATIONAL STRUCTURE

Vertical organizational structure means a strict top down or bottom up structure. Typically, a rigid

top down vertical organizational structure has been a favored form for many business and othertype organizations. In such an organization, the chain of command is usually very important and

breaking it is considered very wrong. In faster moving, dynamic conditions, a verticalorganizational structure can become very inefficient, for example, requiring decisions to slowly go

through many people along the vertical chain of command before actions can be made by thosewho need permission to act.

Vertical organizational structures also tend to create boundaries between departments or branches

in a larger organization, because for a person down one branch must go up the chain of commandon his branch and then down the chain of command on the other branch in order to interact with

someone down the chain of command on a different branch. Having to do this tends to make suchinter group interaction so hard as to strongly discourage it.

Principles of Vertical Structure

Scalar principleRelates to the chain of command and asserts that authority and responsibility in an organizationshould flow in a clear unbroken line from the point of ultimate authority to the bottom of the

hierarchy.

Unity of commandEach worker should have only one boss with no other conflicting lines of command.This vertical

organization structure also determines the social standing status of the individuals.

HORIZONTAL ORGANIZATIONAL STRUCTURE

It indicates the relation between peers, colleagues and fellow workers across the organization.Individuals are located on the same level and have no authority over each other.

They are rather equal in terms of the amount of the authoeity and formal influence they have. They

are more or less equal in social status also. Such structure helps to clarify authority relationships.

To have a more horizontal organizational structure means cutting out levels of mid-managementwhich results in allowing more horizontal level of authority. It does grant more authority to various

horizontal layers of employees. This can help improve communication, remove inefficientbureaucratic steps, reduce unnecessary work and speed up the whole process. The problem with

this can be whether or not the employees given this extra responsibility are in fact capable ofhandling it.


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TALL ORGANIZATION

An organization structure with many levels of management. A tall organization contrasts with aflat organization, since it has an extended vertical structure with well-defined but long reporting

lines. The number of different levels may cause communication problems and slow decisionmaking. It is for this reason that many companies are converting to flatter structures more suited to

the fast responses needed in a rapidly-changing business environment. A tall organizationalstructure has many levels of management, with well-defined but long reporting lines.

A tall organisation has a larger number of managers with a narrow span of control whilst a flat

organisation has few managers with a wide span of control.

A tall organisation can suffer from having too many managers (a huge expense) and decisions cantake a long time to reach the bottom of the hierarchy

BUT, a tall organisation can provide good opportunities for promotion and the manager does nothave to spend so much time managing the staff

In a tall structure each manager has a small/narrro span of control and there are many ranks A tall

organization has a larger number of managers with a narrow span of control

Tall structures are more 'military' in style, and might have the advantages of a well-run army. But

being in a business is not quite like being in an army and people do not always accept the samelevel of authority and coordination; they can resent the military style of administration.


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FLAT STRUCTURE

Aflat organizational structure has relatively fewer layers of management, resulting in a more

effective and simpler communication process. Flat organizational structures provide increasedflexibility when coping with changing circumstances on account of their less bureaucratic nature.

In a flat structure, span-of-control is greater and there are fewer levels of management.A flat

organisation has few managers with a wide span of control.

In contrast to a tall organisation, a flat organisation will have relatively few layers or just one layer

of management. This means that the Chain of Command from top to bottom is short and thespan of control is wide. Due to the small number of management layers, flat organisations are

often

Advantages of flat Organisations

More/Greater communication between management and workers. Better team sprit.Less bureaucracy and easier decision making.

Fewer levels of management which includes benefits such as lower costs as managers aregenerally paid more than worker.

Disadvantages of flat Organisations

Workers may have more than one manager/boss. May limit/hinder the growth of the organisation.Structure limited to small organisations such as partnerships, co-operatives and someprivate limited companies. Function of each department/person could be blurred and merge into the job roles of others.


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LINE STRUCTURE

This is the kind of structure that has a very specific line of command. The approvals and orders in

this kind of structure come from top to bottom in a line. Hence the name line structure. This kindof structure is suitable for smaller organizations like small accounting firms and law offices. This

is the sort of structure that allows for easy decision making, and also very informal in nature. Theyhave fewer departments, which makes the entire organization a very decentralized one.The line

structure is defined by its clear chain of command, with final approval on decisions affecting theoperations of the company still coming from the top down. Because the line structure is most often

used in small organizationssuch as small accounting offices and law firms, hair salons, and"mom-and-pop" storesthe president or CEO can easily provide information and direction to

subordinates, thus allowing decisions to be made quickly.Line structures by nature are fairlyinformal and involve few departments, making the organizations highly decentralized. Employees

are generally on a first-name basis with the president, who is often available throughout the day toanswer questions and/or to respond to situations as they arise

Types of Line Organisation

Pure line OrgansiationSimilar activities at performed at a particular level. Each group of activities is a self contained unitand can perform the activities without the assistance of others.

Departmental Line Organization

Entire activites are divided into different departments on the basis of similarity of activities. Eachdepartment is placed under one department superintendent and all persons in the department are

subject to control by the department head.

Merits of Line Organisation SimplicityDiscipline Prompt DecisionOrderly Communication

Easy supervision and control EconomicalOverall development of the managers

Demerits of Line Organisation

Lack of SpecializationAutocratic Approach Problem of coordinationLack of groundwork for subordinate training


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LINE-AND-STAFF STRUCTURE:

While the line structure would not be appropriate for larger companies, the line-and-staff structure

is applicable because it helps to identify a set of guidelines for the people directly involved incompleting the organization's work. This type of structure combines the flow of information from

the line structure with the staff departments that service, advise, and support them .Linedepartments are involved in making decisions regarding the operation of the organization, while

staff areas provide specialized support. The line-and-staff organizational structure "is necessary toprovide specialized, functional assistance to all managers, to ensure adequate checks and balances,

and to maintain accountability for end results.

Merits of Line Staff structure Planned SpecialisationQuality Decision Prospect for personal growthTraining ground for personnel

Demerits of Line Staff structure

Lack of well defined authorityLine and Staff conflicts

FUNCTIONAL STRUCTURE

This kind of organizational structure classifies people according to the function they perform in

their professional life or according to the functions performed by them in the organization. Theorganization chart for a functional based organization consists of Vice President, Sales department,

Customer Service Department, Engineering or production department, Accounting department andAdministrative department.

Functional organizational structures are concerned with matching a propensity for a skill set with afunctional department; for example, placing employees displaying excellent interpersonal skills ina customer service department.

Characteristics of Functional organizational structures

Specialization by functions Emphasis on sub goals Pyramidal growth of the orgnaisation Line and Staff Division Functional authority relationship among various departmentsLimited span of management and tall structure.


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DIVISIONAL STRUCTURES

This is the kind of structure that is based on the different divisions in the organization. These

structures can be further divided into:

Product structure a product structure is based on organizing employees and work on the

basis of the different types of products. If the company produces three different types of

products, they will have three different divisions for these products. Market Structure market structure is used to group employees on the basis of specificmarket the company sells in. a company could have 3 different markets they use andaccording to this structure, each would be a separate division in the structure.

Geographic structure large organizations have offices at different place, for example therecould be a north zone, south zone, west and east zone. The organizational structure would

then follow a zonal region structure.

.

Merits of Divisional Structure

Emphasis on end results through which revenue was generated Higher level of managerial motivation. Organisational size can be increased without any problem. Each product or customer is able to receive specilaised services because the attention isfocused by the division exclusively for it.

Demerits of Divisional Structure

Divisional Structure is quite costly. Lack of emphasis on functional specilaisation. Lack of managerial personnel.Control system is a major problem of divisionalisation.


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Q6) What is Manpower Planning? Write the Characteristics and Objectives of

Manpower Planning.

Manpower Planning which is also called as Human Resource Planning consists of putting right

number of people, right kind of people at the right place, right time, doing the right things forwhich they are suited for the achievement of goals of the organization. Human Resource Planning

has got an important place in the arena of industrialization. Human Resource Planning has to be a

systems approach and is carried out in a set procedure

It is the development of strategies to match the supply of workers to the availability of jobs at

organizational, regional, or national level. Manpower planning involves reviewing currentmanpower resources, forecasting future requirements and availability, and taking steps to ensure

that the supply of people and skills meets demand. At a national level, this may be conducted bygovernment or industry bodies, and at an organizational level, by human resource managers.

Manpower Planning is the process by which management determines how an organization should

move from its current manpower position to desired manpower position.

It is the strategy for acquisition , utilization , improvement and preservation of an organizationhuman resource. It is aimed at coordinating the requirements for and the availability of different

types of employees.

It is a procedure used in organizations to balance future requirements for all levels of employeewith the availability of such employees

Advantages of manpower planning:

Manpower planning ensures optimum use of available human resources.1. It is useful both for organization and nation.

2. It generates facilities to educate people in the organization.

3. It brings about fast economic developments.4. It boosts the geographical mobility of labor.5. It provides smooth working even after expansion of the organization.

6. It opens possibility for workers for future promotions, thus providing incentive.7. It creates healthy atmosphere of encouragement and motivation in the

organization.8. Training becomes effective.

9. It provides help for career development of the employees.

Characteristics of manpower planning.

HRP involves forecasting as all planning is forward planning or future oriented. HRP is an ongoing or continuous process because the demand for and supply of humanresource undergoes frequent changes. HRP is an integral part of corporate planning.HRP makes optimum utilization of an organizations current and future human resource in

order to maximize the return investment in human resource. HRP has both quantitative and qualitative aspects. Former implies right number ofemployees and latter implies right talent.


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HRP is a system approach to human resources.HRP can be short term or long term. HRP involves study of manpower environment.

Objectives of Manpower Planning

To ensure optimum use of existing human resources.

To forecast future requirement human resource. To link human resource planning with organizational planning.To assess the surplus & shortage of human resources.

To anticipate the impact of technology on jobs and human resource.

To determine levels to recruitment & training.

To estimate the cost of human resource and housing needs of employees.

To facilitate productivity bargaining.

To meet the needs of expansion & diversification program.


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Q7) Explain the Manpower Planning Process with the help of a diagram.

1.Analysing Organisational Plans

The objectives and strategic plans of the company are analysed. Plans concerning technology,production, marketing , finance gives an idea about future work activity. Each plan is further

analyzed into sub plans and a detailed program to prepare out the human resource plan.


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2.Forecating demand for human resource.

On the basis of corporate and functional plans and future activity levels the human resources in the

organization is anticipated. It is necessary to make projections for new positions to be created andvacancies arising in current manpower.

Techniques of Manpower Planning

a. Managerial Judgement.

Experienced managers estimate the manpower requirement for their department on the basis oftheir knowledge of expected future work load and employee efficiency.

b.Ratio Trend Analysis

Ratios are calculated on the basis of past data. Future ratios are calculated on the basis of timeseries extrapolation after making allowances for expected changes in the organization, method and

jobs. On the basis of established ratios the demand for human resources is estimated.

c.Mathematical Models

A mathematical model expresses the relationship between independent variables and dependentvariables. Various factors influencing manpower needs are expressed in form of formulae likeregression, Optimization, Probabilistic model. These rae complex and appropriate for large

organizations.

3.Forecasting Supply of Human resources

Each organsiation has two sources of supply of human resources internal and external.Internally manpower planning can be obtained through promotions and transfers. Manpower flow

in and out of the organization due to several reasons as shpwn in below figure policies relating tothese aspects need to be reviewed regularly to judge their impact of the internal supply of human

resource. To judge inside supply of manpower planning for future Human Resource Inventory /Manpower inventory or human Resource Audit or Manpower Audit is conducted by the company

as they contain the data ofpresent or current human resources.

Manpower inventory helps in determining and evaluating thr quality and quantity of internalhuman resources. It reveals what exists in stock and what can be expected in the future and

indicated the possible shortfalls in comparison with expansion requirement for which someorganizations maintain a Manning table which is a job wise list of employees and some

organizations use Manpower Replacement Charts which shows present performance of eachemployee together with their potential for future performance.

Future Internal Supply of Mnapower = Present Inventory of manpower + Potential

Additions Potential Losses.


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4.Estimating Manpower Gaps

Net manpower requirement / gap can be identified by comparing demand forecast / supplyforecast. Comparision will reveal a deficit or a surplus of personnel in future. Deficit indicates the

number of persons to be recruited from outside or internally. Surplus implies redundant to bedeployed or terminated. Gaps can be occurred in terms of knowledge, skill or gaps. Employees

termed as deficit are given training while employees with higher skills may be given moreenriched jobs.

5.Action Planning

Once manpower gaps are identified plans are made to bridge these gaps. Plans to meet the surplusmanpower may be redeployed in other departments/ units and so on. Deficit can be met through

recruitment , selection, transfer, promotion and training plans. Realistic plans for the procurement,development of manpower should be made after analyzing the environment which affects the

manpower objectives of the organization.

6.Monitoring and ControlOnce the actions plans are implemented the human resource in the organizations needs to be

reviewed and regulated regularly and should be changed as per required by the organsiation.Monitoring control phase involves allocation and utilization of personnels overtime. Review of

manpower plans and programs helps to reveal deficiencies. Corrective actions at the right time toremove the deficiencies should be taken.


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Q8) What information will you get by doing Job Analysis?

A job analysis is the process used to collect information about the duties, responsibilities,

necessary skills, outcomes, and work environment of a particular job. The main purpose ofconducting job analysis is to prepare job description and job specification which in turn helps to

hire the right quality of workforce into the organization. The general purpose of job analysis is to

document the requirements of a job and the work performed. Job and task analysis is performed asa basis for later improvements, including: definition of a job domain; describing a job; developingperformance appraisals, selection systems, promotion criteria, training needs assessment, and

compensation plans.

Job analysis is a systematic approach to defining the job role, description, requirements,responsibilities, evaluation, etc. It helps in finding out required level of education, skills,

knowledge, training, etc for the job position. It also depicts the job worth i.e. measurableeffectiveness of the job and contribution of job to the organization. Thus, it effectively contributes

to setting up the compensation package for the job position.

Importance of Job Analysis

Job analysis helps in analyzing the resources and establishing the strategies to accomplish thebusiness goals and strategic objectives. It forms the basis for demand-supply analysis,

recruitments, compensation management, and training need assessment and performance appraisal.

CONTENTS OF JOB ANALYSIS

Job Identification: Identity of the job in terms of its title and code number.

Job Task: Operations and Tasks involved in the job.

Significant Characteristics of the Job: Location, physical setting, hazards involved, supervisongiven received and received.

Duties and Tasks The basic unit of a job is the performance of specific tasks and duties.Information to be collected about these items may include: frequency, duration, effort, skill,

complexity, equipment, standards, etc.

Environment: This may have a significant impact on the physical requirements to be able toperform a job. The work environment may include unpleasant conditions such as offensive odors

and temperature extremes. There may also be definite risks to the incumbent such as noxiousfumes, radioactive substances, hostile and aggressive people, and dangerous explosives.

Tools and Equipment: Some duties and tasks are performed using specific equipment and tools.

Equipment may include protective clothing. These items need to be specified in a Job Analysis.

Relationships: Supervision given and received. Relationships with internal or external people.

Requirements: The knowledges, skills, and abilities (KSA's) required to perform the job.


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Q9) What Steps are involved in Job Analysis?

1. Organizational Analysis

Overall jobs in the organization is obtained to judge the linkage between jobs and the

organizational goals, interrelationship among various jobs and contribution of various jobs to

the efficiency and effectiveness of the organization. For this purpose background information

is collected in the form of organizational Charts, Class Specifications and Work flow charts.

2. Organizing Job Analysis Program

It is necessary to plan and orgaanise the program of job analysis like who will be in charge of

the program and assign responsibility. Proper time schedule and budget should be framed out.

3. Deciding the uses of Job analysis.

Job analysis is used for almost every function of human resource. How the job information will

be used and for what purpose will determine the extend to which jobs are to be analysed.


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4.Selecting Representative Jobs for analysis.

More time and cost is required to analyse all the jobs. It is desireable to select the

representative sample of jobs for detailed analysis. Priorities for various jobs needing analysis

can also be determined

5. Understand Job Design

The job analyst should obtain information concerning the current design of the representative jobs. Current Job Decscription and job specification, prcocedure manual, systems flow chart

etc studied.

6. Collection of Data.

In this step data on the characteristics of the job and qualification and behavior required to do

the job effectively is collected by different techniquesfrom the current employees who are

actually performing the job or from superior.

7. Developing a Job Description

The information collected in the previous step is used to prepare a Job Description. A JobDescription is a statement which describes in brief the tasks, duties and responsibilities which

needs to be discharged for effective job performance.

8. Preparing a Job Specification.

The last step is to prepare a Job Specification

It is a statement which specifies the job attributes in terms of education, training, experience

required to perform the job.


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Q10) Explain about Recruitment Process. What Factor effects Recruitment?

Recruitment is an important part of an organizations human resource planning and their

competitive strength. Competent human resources at the right positions in the organisation are avital resource and can be a core competency or a strategic advantage for it.

The objective of the recruitment process is to obtain the number and quality of employees that can

be selected in order to help the organisation to achieve its goals and objectives. With the sameobjective, recruitment helps to create a pool of prospective employees for the organisation so that

the management can select the right candidate for the right job from this pool.

Recruitment acts as a link between the employers and the job seekers and ensures the placement ofright candidate at the right place at the right time. Using and following the right recruitment

processes can facilitate the selection of the best candidates for the organisation.


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Factors Affecting Recruitment

The recruitment function of the organisations is affected and governed by a mix of various internal

and external forces. The internal forces or factors are the factors that can be controlled by theorganisation. And the external factors are those factors which cannot be controlled by the

organisation.

The internal and external forces affecting recruitment function of an organisation are:

INTERNAL FACTORS AFFECTING RECRUITMENT

The internal factors or forces which affecting recruitment and can be controlled by theorganisation are

RECRUITMENT POLICYRecruitment policy of an organisation specifies the objectives of recruitment and provides aframework for implementation of recruitment programme. It may involve organizational

system to be developed for implementing recruitment programmes and procedures byfilling up vacancies with best qualified people.

Factors Affecting Recruitment Policy

Organizational objectives Personnel policies of the organization and its competitors. Government policies on reservations.

Preferred sources of recruitment. Need of the organization.

Recruitment costs and financial implications.


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HUMAN RESOURCE PLANNINGEffective human resource planning helps in determining the gaps present in the existingmanpower of the organization. It also helps in determining the number of employees to be

recruited and what qualification they must possess.

SIZE OF THE FIRMThe size of the firm is an important factor in recruitment process. If the organization is

planning to increase its operations and expand its business, it will think of hiring morepersonnel, which will handle its operations.

COSTRecruitment incur cost to the employer, therefore, organizations try to employ that sourceof recruitment which will bear a lower cost of recruitment to the organization for each

candidate.

GROWTH AND EXPANSIONOrganization will employ or think of employing more personnel if it is expanding itsoperations.

EXTERNAL FACTORS AFFECTING RECRUITMENT

The external factors which affecting recruitment are the forces which cannot be controlled bythe organisation. The major external forces are:

SUPPLY AND DEMAND

The availability of manpower both within and outside the organization is an important determinantin the recruitment process. If the company has a demand for more professionals and there is

limited supply in the market for the professionals demanded by the company, then the companywill have to depend upon internal sources by providing them special training and development

programs.

LABOUR MARKETEmployment conditions in the community where the organization is located will influence the

recruiting efforts of the organization. If there is surplus of manpower at the time of recruitment,even informal attempts at the time of recruiting like notice boards display of the requisition or

announcement in the meeting etc will attract more than enough applicants.

IMAGE / GOODWILL

Image of the employer can work as a potential constraint for recruitment. An organization withpositive image and goodwill as an employer finds it easier to attract and retain employees than an

organization with negative image. Image of a company is based on what organization does andaffected by industry. For example finance was taken up by fresher MBAs when many finance

companies were coming up.


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POLITICAL-SOCIAL- LEGAL ENVIRONMENT

Various government regulations prohibiting discrimination in hiring and employment have direct

impact on recruitment practices. For example, Government of India has introduced legislation forreservation in employment for scheduled castes, scheduled tribes, physically handicapped etc.

Also, trade unions play important role in recruitment. This restricts management freedom to selectthose individuals who it believes would be the best performers. If the candidate cant meet criteria

stipulated by the union but union regulations can restrict recruitment sources.

UNEMPLOYMENT RATE

One of the factors that influence the availability of applicants is the growth of the economy

(whether economy is growing or not and its rate). When the company is not creating new jobs,there is often oversupply of qualified labour which in turn leads to unemployment.

COMPETITORS

The recruitment policies of the competitors also effect the recruitment function of the

organisations. To face the competition, many a times the organisations have to change theirrecruitment policies according to the policies being followed by the competitors.


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Q11) What are the latest Sources for Recruitment?

The following trends are being seen in recruitment:

OUTSOURCING

A company may draw required personnel from outsourcing firms. The outsourcing firms help theorganisation by the initial screening of the candidates according to the needs of the organisation

and creating a suitable pool of talent for the final selection by the organisation. Outsourcing firmsdevelop their human resource pool by employing people for them and make available personnel to

various companies as per their needs. In turn, the outsourcing firms or the intermediaries chargethe organisations for their services.

Advantages of outsourcing are:

1. Company need not plan for human resources much in advance.2. Value creation, operational flexibility and competitive advantage

3. Turning the management's focus to strategic level processes of HRM4. Company is free from salary negotiations, weeding the unsuitable resumes/candidates.

5. Company can save a lot of its resources and time

POACHING/RAIDINGBuying talent (rather than developing it) is the latest mantra being followed by the organisations

today. Poaching means employing a competent and experienced person already working withanother reputed company in the same or different industry; the organisation might be a competitor

in the industry. A company can attract talent from another firm by offering attractive pay packagesand other terms and conditions, better than the current employer of the candidate. But it is seen as

an unethical practice and not openly talked about. Indian software and the retail sector are thesectors facing the most severe brunt of poaching today. It has become a challenge for human

resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.

E-RECRUITMENTMany big organizations use Internet as a source of recruitment. E-recruitment is the use of

technology to assist the recruitment process. They advertise job vacancies through worldwide web.The job seekers send their applications or curriculum vitae i.e. CV through e mail using the

Internet. Alternatively job seekers place their CVs in worldwide web, which can be drawn byprospective employees depending upon their requirements.

WALK IN

A new method which has come into being is the walk in method. Comapanies advertise for a

particular position. They give the details of the job/work position and the required job specificationand the venue where the interviews are held. The candidate can directly approach the venue to

appear for the interview. The candidates are generally short listed by an aptitude /written test priorto the interview.


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Q 12) Explain Recruitment Problems in India.

THE PROBLEM OF SON OF THE SOIL

The question of preference to the son of the soil that is local population for employment within the

local area assumed a complex character. The problem was considered by the National Commissionon Labour in 1969 and the solution was given in terms of primacy of the common citizenship,

gepgraphic mobility and economic feasibility of locating industrial units on one hand and localaspirations on the other. The young individuals from families whose land has been acquired for

industrial use should be provided training opportunities for employment likely to be created in newunits to be established in these lands.

JOB SPECIFICATION PROBLEM

There are many situations where the executive is not sure about the kind of executive /person heneeds to do a given job at a certain phase of organsiation growth. The kind of person an orgaisation

requires fro the same position variers with the following situational factors.

Life Cycle

Whether an organization is starting up or is growing or has achieved maturity or is threatenedby

decline.

Nature

Proprietary, private, public, cooperartive and government

Marketing Profile

Customers Profile, Markets Profile, Products Profile, pricing policies, distribution system,promotion and advertising profile.

Historical Factor

Organsiation culture as it has been developed, past history and future plans, kind of persons who

have been and are at control of affairs.


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Q 13) What are the steps involved in Selection Procedure?

Selection is a process of choosing the most suitable persons out of all the applicants. Selection is aprocess of matching the qualifications of applicant with the job requirements. It is the process of

weeding out unsuitable candidates& finally identify the most suitable candidates. '

So, Selection is described as a process of rejection because generally more candidates areturned away than are hired. , - ,.-- ---

Because of above reason Selection is known as "Negative Process"& Recruitment is known as

"Positive Process" as it aims at increasing the number of application for wider choice or forincreasing the selection ratio. Selection is negative as it rejects a large number of applicants to

identify the few who are suitable for the job. Selection is the process of choosing the best out ofthose recruited.


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STEPS IN SELECTION PROCESS

1. Preliminary Interview: Initial screening is done to weed out totally undesirable/unqualified

candidates at the outset. Preliminary interview is a sorting process in which the candidates are givethe necessary information about the nature if the job & about the organization & also the necessary

information is elicited from the candidate about their education, skills, experiences, salaryexpectations etc. from which suitable candidate is selected. Preliminary interview saves time &

efforts of both the company & the candidate So, preliminary interview is the first contact of anindividual with the organization.

2. Application Blank: It is a traditional & widely used method for collecting information from

candidates. The application form should provide all the information relevant to selection.Generally application form contains the following information:

Identifying information- Name, address, telephoneno, etc. Personal information- Age, sex, place

of birth, marital status,dependants.

Physical characteristics-height, weight, eyesight,etc.

Family background Education- Academic, Technical, & Professional.

Education- Academic, Technical, & Professional.

Experiences- Job held, employers, duties performed, salary drawn,

Miscellaneous- Extra curricular activities, hobbies, games & sports, etc.

Application forms help to serve several objectives:

(i)

Scrutiny of forms helps to weed out candidates who are lacking in education,experience or in some other traits.

(ii) Helps in formulating questions to be asked in the interview(iii) Data contained in application forms can be stored for future references.

3.Selection Tests: Tests are based on the assumptions that individuals are differing in their job

related traits which can be measured. Tests are helpful in better matching of candidate and the jobas it reduces biasness in selection by serving supplementary screening device.

It provides a systematic basis for comparing the behaviour, performance, attitude & other related

traits as selection tests are different kind & are differ from job to job. At best it reveals that thecandidates who have scored above the predetermined cutoff points are likely to be more successful

than those scoring below the cutoff point.

4.Employment Interview:An interview a conversation between two & more persons. Interview isan essential element of selection & no selection procedure is complete without one or more

personal interviews. As by the interview information collected through application & test can becrosschecked in the interview


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A selection interview serves various purpose: Obtaining information about the background, education, training, work history & interestsof the candidate

Giving information to candidates about the company, the specific job & policies Establishing the friendly relationship between the employer & the candidate to motivate thesuccessful applicants to work for the organization.

5.Medical Examination: Applicants who have crossed the above stages are sent for the physicalmedical examination either to the company's physician or to a medical officer approved for the

purpose.

Medical examination serves the following purpose:

Determine whether the candidate is physically fit to perform the job or not

It reveals existing disabilities & provides a record of the employee's health at the time ofselection. This record helps in settling company's liability under the various for claims& for

injuries etc. Prevents the employment of people suffering from contagious disease . Identifies candidates who are otherwise suitable but require specific jobs due to physicalhandicaps & allergies.

6.Reference Checks:In this stage the applicant is asked to mention in his application form, thename & addresses of two or more persons who know him well. They may be his/her previous

employers or public figures. The organization can contact with if it wish by mail or telephone &these person are requested to provide true opinion about the candidates. The opinion of references

can be useful in judging the future behaviour and performance candidate. But one can't rely onthem fully as they might be biased in favor of the candidate.

7.Final Approval: In most of the organizations, selection process is carried out by the Human

Resource Department. The decision of this department is recommendatory. The candidates shortlisted are finally approved by the executives of these departments/units. Employment is offered in

the form of an appointment letter mentioning the designation, the status, the salary grade, the joining date, & the other terms & conditions. Final approval is generally made on a probation of

one or two year & is differing from organization to organization. After a satisfactory performancethe candidate is finally confirmed in the job on permanent basis or regularized.


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Q 14) Write the types of Selection Tests.

SELECTION TEST (PSYCHOLOGICAL TEST)

A psychological test is an objective & standardized measure of a sample behavior from whichinferences about future behavior & performance of the candidate are drawn. Tests provide a

systematic procedure for sampling human behavior. These test are based on the assumption that no

two individuals are equal in terms of intelligence, attitudes, personality, &other relate traits ones characteristics with others are measured through these tests.

Types of Selection tests Aptitude Test Achievement TestPersonality Test

Interest Test

1. Aptitude Tests or Potential Ability Tests:These tests measure the latent ability or potential ofa candidate. Peculiarities or defects in a person's or intellectual capacity can be detected through

these tests. These focus attention on a particular type of talent such as reasoning, learning,mechanical bent of mind. They are totally depending on the nature of job as the criteria of these are

differing from job to job.

Types of Aptitude Tests

Mental / Intelligence Tests: These tests measure the overall intellectual capacity (IQ) of thecandidates. These reveals an individual is capable to deal with the new problems. Intelligence tests

measure the ability to understand instructions & to make decisions. They determine a candidate'sword fluency. memory, inductive reasoning, comprehension, speed and perception & visualization.

Mechanical Tests: These tests measure a candidate's capacity to do a particular type of mechanical

work. These are useful for selecting apprentices, machinists, mechanics, maintenance workers, &technicians. So, these are for lower level personnel's who are with the jobs of operating jobs.

Perceptual speed, manual dexterity, visual insights, specialized knowledge for techniques, problemsolving ability, technical vocabulary, etc are judged in these tests.


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Psycho-motor or Skill Tests: These tests measure a candidate's ability to perform specific job.These are primarily used for selecting workers who have to perform semi-skilled & repetitive jobs

-like assembly work, packing, testing & inspection. These tests help to determine mental dexterityor motor - ability, & similar attributes involving muscular

movement.

2. Achievement or Proficiency TestsThese tests measure what a person can do. These determine the skill or knowledge already

acquired through training & on the job experience.

Types of achievement Test

Job Knowledge Tests: Also known as "Trade Tests". These are used to judge proficiency intyping, shorthand & in operating calculating, adding machines, dictating & transcribing machines

or simple mechanical equipments. These can be both oral & written. Such tests are useful nselection of stenographers, typists, office workers, supervisors, salespersons, public utility

employees ,etc.

Work Sample Tests: In these tests, a candidate is given a piece of work to judge how efficientlyhe does it. For Example, a typing test provides the material to be typed & notes the time taken &

mistakes committed.

3. Personality TestsThese are "Pen & Paper Tests" used to judge the psychological makeup of candidates. These help

in assessing a candidate's motivation & interests, his ability to adjust himself to the stress of everyday life, his capacity of/for interpersonal relations& for projecting an impressive image of himself.

Traits like Self confidence, Ambition, Tact, emotional control (EQ), optimism, decisiveness,sociability, objectivity, conformity, patience, fear, distrust, initiative, judgment, dominance,

sympathy, integrity emotional reactions, individual's values, maturity etc. are judged by these typeof tests. These tests provide all round picture of a candidate's personality.

Types of Personality Test:

Objective Tests: These tests measures neurotic tendencies, self- sufficiency, dominance-

submission & self confidence. These traits are scored objectively. . Projective Tests: In these tests,a candidate's is asked to project his interpretation on to certain stimuli like ambiguous pictures,

figures etc. The ways in which he responds to these stimuli reflect his own values, motives &personality.

Situational Tests: These tests measure a candidate's reactions when placed in a peculiar situation,

his ability to undergo stress & hi", creativity & initiates to handle pressure. These usually relate togroup situation in which some problems are posed to a group & its members are asked to reach

some conclusions without the help of a leader. Group discussions & In-basket methods are used toconduct this type of tests.

4. Interest Tests: These tests are inventories of a candidate's like& dislikes in relation to work.

These are used to discover a candidate's area of interest & to identify kind of work that will satisfyhim. These are used for vocational guidance. questionnaire is used to assess the likes& dislikes.


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Q 15) What do you understand about Induction? Write the Objectives.

Induction:

Induction or Orientation is the process of receiving & welcoming an employee when he firstjoins a company & giving him the basic information he needs to settle down quickly & happily &

start work.

The new employee is to introduce to the job & the organization. The purpose of orientation isto explain the duties, responsibilities, company policies, rules & other relevant information to

newly placed employee's to make them feel at home & develop a sense of pride in the organization& commitment to the job.

Orientation is therefore, a process of indoctrination, welcoming, acclimatization, acculturalization& socialization.

Objectives of Induction:

Orientation program is design to achieve the following objectives:

To help newcomer overcome his natural shyness & nervousness in meeting new people in anew environment. To build up the new employee's confidence in the organization & in himself so that he maybecome an efficient employee.

To develop among the newcomers a sense of belonging& loyalty to the organization. To foster a close & cordial relationship between the newcomers & the old employees &their supervisors.

To ensure that the newcomers don't from false impression & negative attitude towards theorganization or the job because first impression is the last impression.


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Q 16) What are the Requirements to be followed for a Good Transfer Policy?

Every organization has a policy concerning transfer of employees. A policy should be formulatedto govern all types of employee transfer& will ensure uniformity of treatment\& avoid transfers for

petty reasons. .

A good transfer policy should satisfy the following requirements:

1. Transfer policy should clearly specify the types of transfers & the circumstances under whichtransfer will be made.

2. Should prescribe the basis of transfers.3. Should indicate the executives responsible for initiating & approving the Transfer.

4. Should tell whether the transfer can be made only within the department or also between thedepartments.

5. Should specify the effect of transfer on the seniority& pay of the employees.6. Should be put in writing.

7. Should be communicated & explained to the employees.8. Facilities (like leave, special allowances for shifting to new place etc) to be

Extended to the transferred employee should be prescribed.


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Q 17) Explain the difference between Transfer, Promotion and Up gradation.

A transfer refers to a horizontal or lateral movement of an employee from one job to anotherin the same organization without any significant change in status & pay.

A Transfer is define as- "A lateral shift causing movement of individual's from one position

to another usually without involving any marked change in duties, responsibilities, skills

needed or compensation.

Transfer may be:

Temporary

Permanent

Temporary transfer arises due to ill health, absenteeism, etc

Permanent transfer due to change in work load, or death, retirement, resignation, etc. of some

employee.

Promotion refers to advancement of an employee to a higher post carrying greater responsibilities,higher status & better salary. It is the upward movement of an employee in

the organization hierarchy, to another job commanding graeter authority, higher status &better working conditions.

Promotion may be permanent or temporary, depending upon the needs of the organization.

When an employee is assigned to a higher level job without increase in pay, it is called aDry Promotion ".

Difference between Promotion, Up-gradation, & Transfer

Promotion Vs Up-gradationUp-gradation implies movement of an employee to a higher pay scale without change of job.The job itself is elevated to a higher grade without increase in status & authority. On the other

hand, promotion involves change of job with increase in status, authority & salary. Both are usedto reward the employees for better performance & to motivate them for greater

effort.

Promotion Vs TransferTransfer implies movement of an employee to another job at the same level pay scale without

increase in authority & status. On the other hand, promotion means movement of an employee tohigher level job with increase in authority, status, & pay. Transfer is a horizontal

shift of an emplvyee whereas promotion is a vertical movement. Promotion is a tool of motivatingemployees but transfer has little motivating value.


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Q18) What are the main Features of Promotion Policy?

Promotion Policy:

Every organisation should formulate a sound policy regarding promotion of its employees. The main features of a good promotion policy arc as follow:Must provide a uniform distribution of promotional opportunities' throughout the

company. Must tell employees the avenues of advancement available to them. Multiple chainpromotion charts may be prepared for this purpose. Basis of promotion should be clearly specified.Suitable training & development opportunity should be provided so that employees can prepare themselves for advancement.


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Q19) What measures will you implement for Control over Absenteeism

Absenteeism means the failure of a employees to report for worker when is schedule to work.Absenteeism is unauthorized, avoidable & willful absence from duty. As absence of a employees

on account of strike or lockout, or layoff, i.e. involuntary absence is not considered absenteeism.

The rate of absenteeism is defined as the percentage of man days lost due to absence to the

total number of man days scheduled in a a given time period.

Causes of Absenteeism:

Employees remain absent due to several factors which are given below:

Nature of Work (A employee is likely to absent when the job is tough or monotonous & employee gets tired physically & mentally) Poor working condition (When work environment is unsatisfactory) Sickness (Sickness is the major cause of absenteeism in India)Accidents (Industrial & load accidents lead to physical & mental injuries which results in absenteeism of employees)Lack of Interest (Due to lack of interest in their jobs &no sense of responsibilities) Absence of Housing & Transport Facilities.

Control over Absenteeism:

Absenteeism cannot be eliminated altogether. Effective measures should be taken to Proper Hiring Good Working Condition Safety ProgramIncentives Effective Supervision

Disciplinary Action Employees counselingRegular Leave Provision

Proper Records


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Q 20) Draw and Explain about Employee Turnover.

Employee turnover refers to the rate of change in the workforce of an enterprise during a givenperiod of time.

Employee Turnover is define as - "the time to time changes in the composition of the workforce

that result from hiring, release & replacement of employees. " It is the measure to the extend to

which old employees leave & new employees enter theservice of a concern.

Turnover is differ from absenteeism as former measures the extend of change in the compositionof working force whereas the latter indicates the extend to which employees

fails to attend to their regular work.

Causes of Employee Turnover:

Employees either leave a company on their own or they are terminated. So, employee

turnover arises due to avoidable & unavoidable reasons.

1. Avoidable Causes: Redundancy is the most significant avoidable cause of employee turnover.Employees may become redundant or surplus & have to be discharged due to lack of demand,

shortage of raw material, nature of business, defective management planning etc. Dissatisfactionwith the job, poor working condition, low salary, long working hours, bad relations, with peers,

subordinates, superiors, etc are few avoidable reason of employee turnover.2. Unavoidable Causes: Employee turnover also arises due to reasons which are beyond

the control of management like:


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Better prospects oui'side the concern. Domestic affairs like marriage & pregnancy in case of women employees. Illness & accidents causing physical disability. Retirement & Death.Departure from the city.

Housing & transport problem.

Effect of Employee Turnover:

Some degree of employee turnover is inevitable as well as desirable in all organization. Highrate of turnover is a .vaming to management that some thing is wrung with the organization.

High turnover is a sign of low morale & instability & is harmful to both for employer as wellas employees.

Costs to Employer:

High employee turnover is costly to employer in the following reasons: Hiring cost involved in repeat recruitment, selection& their placements. Expenditure incurred on orientation & training of employees goes waste. Loss of production in the time interval between separation replacement by new. Overtime costs have to be incurred to meet delivery schedule.Smooth working & quality of organization suffers. Accident rates of new employees will be higher.Scarps &waste rates increase due to inexperience of new employees. Market reputations of the company suffer due to high turnover.Human resources are under utilized & under estimated.

Costs to Employees

High turnover is harmful to employees in following reasons:

Due to shifting a employee losses the benefits of previous service like pay increment leave,provident fund, etc. .An employee can losses the opportunity to promotion if on the basis of seniority. Special skills, & experience developed in an organization may become meaningless in another organization. Work environment differs from one to another organizationwhich again can be a problem for an employeeto shift in.

Control of Employee Turnover:

The following steps can be taken to reduce employee turnover:

Proper planning of manpower requirements to avoid redundancy.Improvement in Recruitment & selection policies & practices. Proper orientation & training of employees. Better pay & good working environment. Promotion from within & other career opportunities.Security of services Impartial transfer & promotion policies & practices. Introduction to incentives plans.


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Employee's welfare schemes. Adequate machinery for satisfactory redressal& grievances. Provision of retirement benefits. Employee consultation, suggestions, schemes, & employees participation in management. Conflicts resolutions &team building techniques to improve humanrelations. Proper job designing with job enrichment & work scheduling to match skills with jobrequirements.


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Q 21) Define Personnel Policy. Explain Aims and Objectives of Personnel Policy.

A policy", says Flippo, "is a man-made rule of pre-determined course of action that is established

to guide the performance of work toward the organization objectives. It is a type of standing planthat serves to guide subordinates in 'the execution of their tasks." According to Calhoon Personnel

policies constitute guide to action. They furnish the general standards or bases on which decisionsaie reached. Their genesis lies in an organization's values, philosophy, concepts and principles."

"Policies are statements of the organization's over-all purposes and its objectives in the variousareas with which its operations are concerned - personnel, finance, production, marketing and so

on."

A policy is a pre-determined, selected course established as a guide to accepted goals andobjectives. - they (policies) establish the framework of guiding principles that facilitate delegation

to lower levels and permit individual managers to select appropriate tactics o( programmes Incontrast to these, personnel policies are those that individuals have developed to keep them on the

track towards their personnel objectives.... Management policies are developed by workingorganization to keep them on course headed and directed toward their organizational objectives.

These define the intentions of the organization and serve as guidelines to give consistency and

continuity to total operations. They provide base for management by principle as contrasted withmanagement by expediency. "He adds" "Personnel or labour or industrial relations policy providesguidelines for a wide variety of employment relationships in the organization. These guidelines

identify the organization's intentions in recruitment, selection, promotion, development,compensation, organization, motivation and otherwise leading and directing people in working

organization. Personnel policies serve as a road map for manage. Thus {personnel policies refer toprinciples and rules of conduct which "formulate, redefine into details and decide a number of

actions" that govern the relationship with employees in the attainment of the organizationobjectives.

The aim of personnel policies should be / are:

To enable an organization to fulfil or carry out the main objectives which have been llaiddown as the desirable minima of general employment policy;

To enable that its employees are informed of these items of policy and to secure their co-operation for their attainment; To provide such conditions of employment and procedures as will enable all the employeesto develop a sincere sense of unity with the enterprise and to carry out their duties in themost willing and effective manner; To provide an adequate, competent and trained personnel for all levels and types ofmanagement; To protect the common interests of all the parties and recognize the role of trade unions inthe organization;To provide for a consultative participation by employees in the management of anorganization and the framing of conditions for this participation, which, however, shall nottake part in technical, financial of trading policy;

To provide an efficient consultative service, which aims at creating mutual faith amongthose who work in the enterprise;

a) by developing management leadership which is bold and imaginative and guided by

moral values;


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b) by effectively delegating the human relations aspects of personnel functions to linemanagers;c) by enforcing discipline on the basis of co-operative understanding and a humane

application of rules and regulations; andd) by providing for a happy relationship at all levels.

To establish the conditions for mutual confidence and avoid confusion andmisunderstanding between the management and the workers, by developing suggestionplans, joint management councils, work committees, etc and by performance appraisal

discussions

To provide security of employment to workers so the they may not be distracted by theuncertainties of their future; To provide an opportunity for growth within the organization to persons who are wi1ling tolearn and undergo training to improve their future prospects;

To provide for the payment of fair and adequate wages and salary to workers so that theirhealthy co-operation may be ensured for an efficient working of the undertaking;

To recognize the work and accomplishments of the employees, by offering non-monetaryincentives.


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Q 22) What is the Significance of Employee Turnover?

Employee turnover refers to the rate of change in the workforce of an enterprise during a givenperiod of time.

Employee Turnover is define as - "the time to time changes in the composition of the workforce

that result from hiring, release & replacement of employees. " It is the measure to the extend to

which old employees leave & new employees enter theservice of a concern.

Effect of Employee Turnover:

Some degree of employee turnover is inevitable as well as desirable in all organization. Highrate of turnover is a .vaming to management that some thing is wrung with the organization.

High turnover is a sign of low morale & instability & is harmful to both for employer as wellas employees.

Costs to Employer:

High employee turnover is costly to employer in the following reasons: Hiring cost involved in repeat recruitment, selection& their placements. Expenditure incurred on orientation & training of employees goes waste. Loss of production in the time interval between separation replacement by new. Overtime costs have to be incurred to meet delivery schedule.Smooth working & quality of organization suffers. Accident rates of new employees will be higher.Scarps &waste rates increase due to inexperience of new employees. Market reputations of the company suffer due to high turnover.Human resources are under utilized & under estimated.

Costs to EmployeesHigh turnover is harmful to employees in following reasons:

Due to shifting a employee losses the benefits of previous service like pay increment leave,

provident fund, etc. . An employee can losses the opportunity to promotion if on the basis of seniority. Special skills, & experience developed in an organization may become meaningless in another organization. Work environment differs from one to another organizationwhich again can be a problem for an employeeto shift in.Control of Employee Turnover:

The following steps can be taken to reduce employee turnover:

Proper planning of manpower requirements to avoid redundancy.Improvement in Recruitment & selection policies & practices. Proper orientation & training of employees. Better pay & good working environment.


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Promotion from within & other career opportunities.Security of services Impartial transfer & promotion policies & practices. Introduction to incentives plans. Employee's welfare schemes. Adequate machinery for satisfactory redressal& grievances. Provision of retirement benefits.

Employee consultation, suggestions, schemes, & employees participation in management. Conflicts resolutions &team building techniques to improve humanrelations.Proper job designing with job enrichment & work scheduling to match skills with job requirements.


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Q23) Explain Features and Causes of Grievances.

Grievance means any real or imaginary feelings of dissatisfaction & injustice which an employee

has about his employment relationship.

Grievance is any dissatisfaction or feeling of injustice in connection with one's employment

situation that is brought to the attention of management.

A grievance is any discontent or dissatisfaction, whether expressed or not, whether valid or not,

arising out of anything connected with the company that an employee thinks, believes or evenfeels, is unfair, unjust or inequitable."

Features of Grievance

1. Reflects dissatisfaction or discontent or a feeling of injustice.

2. Dissatisfaction must arise out of employment & not from personal or family problems.3. Dissatisfaction may be expressed or implied.

4. Dissatisfaction may be valid & legitimate or irrational & ridiculous or false.5. A grievance arises only when on employee feels that injustice been done to him.

6. Grievance if not redressed in time tends to lower morale & productivity of employees.

Causes of Grievances

Grievances may arise due to the following reason:

1.Grievances arising out of Working Conditions:1. Poor physical conditions of work place

2. Very tight production standards.3. Non-availability of proper tools & machines

4. Unplanned changes In schedules & procedures.5. Failure to maintain proper discipline

6. Mismatch of the worker with the job.7. Poor relationship with the supervisor

2.Grievances arising from Management policy1. Wage rate and methods of salary payment or wage payment

2. Overtime and incentive schemes3. Seniority

4. Transfer5. Promotion, demotion and discharge.6. Lack of opportunities for career growth.

7. Penalties imposed for misconduct8. Leave

9. Hostility towards trade union10.


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3. Grievances arising from alleged violation of1. The collective bargaining agreement2. Company rules& regulations.

3. Past Practices.4. Central or State laws. . .

5. Responsibilities of management.

4. Grievances arising outt of Personal Maladjustment:1. Over-ambition.

2. Excessive self- esteem.3. Impractical attitude to life.


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Q24) Write the procedure to be followed for Grievance Redressal.


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STEPS FOR GRIEVANCE REDRESSAL

1.An aggrieved employee shall present his grievance verbally in person to the officer nominated /

appointed by the management foe this purpose. The officer must give his answers within 48 hoursof the presentation of the com

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