The document discusses key aspects of human resource management including definitions, importance, objectives and qualities of good personal managers. It covers topics such as human resource planning, job analysis, recruitment, selection, placement, induction and types of orientation programmes. The objectives of human resource management are outlined as resource utilization, professional growth, better union-management relations, teamwork, identifying future talent and allocating the right people to jobs. Job analysis is defined as a process to identify job duties and skills required to perform jobs effectively. Recruitment aims to attract qualified candidates while selection identifies the best candidates. Placement, induction and orientation programmes help new employees adjust to their roles.

1. Human Resource management

2. Definition
• “Human Resource management is a series of
integrated decisions that form the employment
relationship; their quality contributes to the
ability of the organisations and the employees
to achieve their objectives”.

3. Importance of Human resource
management
•
•
•
•
•
•
•
•
•
Human resources planning
Job analysis design
Recruitment and selection
Orientation and induction
Training and development
Performance appraisal
Compensation planning and remuneration
Motivation, welfare, health and safety
Industrial relations

4. Objectives of Human Resource
Management
• Resource utilization
• Facilitates professional growth
• Better
relations between
union
and
management
• Helps an individual to work in a team/group
• Identifies person for the future
• Allocating the jobs to the right person
• Improves the economy

5. Qualities of good personal manager
•
•
•
•
•
•
•
Policy Initiator and Formulator
Advisor
Problem Solver
Mediator
Well-wisher
Representative Decision-maker
Problem Solver

6. Evaluation of HRM in India

7. Human Resource Policy
• A policy is a statement or general understanding which provides
guidelines to members of the organisation for making decision in
respect to any course of action.
• The organisation is required to formulate policies in different
areas which are necessary for achieving organisational goals.
• HR policies provide guidelines for a variety of employment
relationships and identify the organisation intentions in
recruitment, selection, development, promotion, compensation,
motivation and integration of human resource.

8. Needs of HR Policy
• A policy provides guidelines to the members of the organisation for
deciding a course of action and, thus restricts their freedom to action.
• Policy provides and explains what a member should do rather than
what he is doing.
• A policy limits an area within which a decision is to be made and
assures that the decision will consistent with and contributive to
objectives.
• Policies are generally expressed in qualitative, conditional, or general
way.

9. Objectives of HR Policy
• To enable the organisation to have adequate, competent and trained
personnel at all level.
• To provide such conditions of employment that enables the personnel to
develop a sincere sense of unity with the organisation and to carry out
their duties in most willing and effective manner;
• To provide and create a sense of responsibilities on the part of those who
directly deal with human resources to adopt a humanistic approach with a
guaranteed protection of the fundamental rights of the employees and
their dignity.
• To develop conditions for mutual trust and cooperation between those
who mange and those who are managed at all level of the organisation.

10. Scope of HR Polices
• Acquisition of Personnel
• Training and Development
• HR Mobility
• Working conditions and work schedules
• Industrial Relations

11. Formulation of HR Policies

12. Types of HR Policies
Overall HR policy
• The overall HR policy defines how the organization fulfils its social
responsibilities for its employees and sets out its attitudes towards them.
It is an expression of its values or beliefs about how people should be
treated.
Specific HR policies
• Specific HR policies cover age and employment, AIDS, bullying,
discipline, e-mails and the internet, employee development, employee
relations, employee voice, employment, equal opportunity, grievances,
health and safety, managing diversity, promotion, redundancy, reward,
sexual harassment, substance abuse and work–life balance.

13. Advantages of written policies
• Recruitment and Selection
• Training and Professional Development
• Handling Employee Concerns
• Workplace Safety
• Organizational Structure
• Employment Rules

14. Human Resources policies and work
Culture
• We are an equal opportunity employer. This means that we do not permit
direct or indirect discrimination against any employee on the grounds of
race, nationality, sex, sexual orientation, disability, religion, marital status
or age.
• Direct discrimination takes place when a person is treated less favorably
than others are, or would be, treated in similar circumstances.
• Indirect discrimination takes place when, whether intentionally or not, a
condition is applied that adversely affects a considerable proportion of
people of one race, nationality, sex, sexual orientation, religion or marital
status, those with disabilities, or older employees.

15. Human Resources policies and work
Culture
• The firm will ensure that equal opportunity principles are
applied in all its HR policies, and in particular to the
procedures
relating
to
the
recruitment,
training,
development and promotion of its employees.
• Where appropriate and where permissible under the relevant
legislation and codes of practice, employees of underrepresented groups will be given positive training and
encouragement to achieve equal opportunity.

16. Human Resource Planning
• A process of systematically reviewing human
resource needs to ensure that the required
number of employees, with the required skills,
experience and competencies, is available for
the right jobs at the right time at the right cost.

17. Reasons for engaging in human
resource planning
• Planning for substantive reasons, that is, to have a
practical effect by optimizing the use of resources
and/or making them more flexible, acquiring and
nurturing skills that take time to develop,
identifying potential problems and minimizing the
chances of making a bad decision.

18. Reasons for engaging in human
resource planning
• Planning because of the process benefits, which
involve understanding the present in order to
confront the future, challenging assumptions and
liberating thinking, making explicit decisions that
can later be challenged, standing back and
providing an overview and ensuring that long-
term thinking is not driven out by short-term
focus.

19. Reasons for engaging in human
resource planning
• Planning for organizational reasons, which
involves communicating plans so as to obtain
support/adherence to them, linking HR plans to
business
plans
so
as
to
influence
them,
(re)gaining corporate control over operating units,
and coordinating and integrating organizational
decision making and actions.

20. Long-Term Planning and ShortTerm Planning
• Often, however, operating pressures move all of the planning from
a longer-term focus to a short-term one. That normally tends to
create an environment within which the plan cannot be fully
successful.
• “Over-reliance on short-term planning can be quite costly. Ample
lead time is required to recruit or develop talented personnel, and
reaction management that responds to short term events or needs
will usually limit the choices of options or endanger longer-range
economic plans.

21. The link between strategic planning
and human resource planning

22. Human resource planning model

23. Job analysis
• Job Analysis is a process to identify and determine in detail the
particular job duties and the identification of knowledge, skills
and attitude required to perform the job duties in an optimum
manner.
• The Job; not the person: An important concept of Job Analysis
is that the analysis is conducted of the Job, not the person.
While Job Analysis data may be collected from incumbents
through interviews or questionnaires, the product of the analysis
is a description or specifications of the job, not a description of
the person.

24. Job Analysis: A Basic Human Resource Management Tool
Tasks
Responsibilities
Duties
Human Resource
Planning
Recruitment
Selection
Training and
Development
Job
Descriptions
Job
Analysis
Performance Appraisal
Compensation and
Benefits
Job
Specifications
Safety and Health
Employee and Labor
Relations
Knowledge
Skills
Abilities
Legal Considerations
Job Analysis for Teams
24

25. Purpose of Job Analysis
• The purpose of Job Analysis is to establish and
document the 'job relatedness' with other HR processes
such as
1. training
2. selection
3. compensation
4. performance appraisal.

26. Importance of Job Analysis

27. Job Position / Role
• Job position refers to the designation of the job and
employee in the organization. Job position forms an
important part of the compensation strategy as it
determines the level of the job in the organization.
For example management level employees receive
greater pay scale than non-managerial employees.
The non-monetary benefits offered to two different
levels in the organization also vary.

28. Job Description / Job Specifications
• Job description refers the requirements an organization
looks for a particular job position. It states the key skill
requirements, the level of experience needed, level of
education required, etc. It also describes the roles and
responsibilities attached with the job position.
• The roles and responsibilities are key determinant
factors in deciding the job specifications i.e. the level of
experience, education, skills, etc required for the job.

29. Job Worth / Evaluations
• Job Worth refers to estimating the job worthiness i.e.
how much the job contributes to the organization. It is
also known as job evaluation. Job description is used
to analyze the job worthiness.
• It is also known as job evaluation. Roles and
responsibilities helps in determining the outcome
from the job profile. Once it is determined that how
much the job is worth, it becomes easy to define the
compensation strategy for the position.

30. Recruitment
• A process to discover the sources of
manpower to meet the requirements of the
staffing schedule and to employ effective
measures for attracting that manpower in
adequate numbers to facilitate effective
selection of an efficient workforce.

31. Purpose and Importance of Recruitment
1. Determine the present and future requirements of the
organization in conjunction with
personnel-planning and job-
analysis activities.
2. Increase the pool of job candidates at minimum cost.
3. Help increase the success rate of the selection process by
reducing the number of
visibly, under qualified or
overqualified job applicants.
4. Help reduce the probability that job applicants, once recruited
and selected, will leave
period of time.
the organization only after a short

32. Purpose and Importance of Recruitment
5. Meet the organizations legal and social obligations regarding the
composition of its work-force.
6. Begin identifying and preparing potential job applicants who will
be appropriate candidates.
7. Increase organizational and individual effectiveness in the short
and long term.
8. Evaluate the effectiveness of various recruiting techniques and
sources for all types of job applicants.

33. TYPES OF RECRUITMENT

34. Recruitment process

35. Recruitment Planning
The first stage in the Recruitment Process is
planning. Planning involves the translation of likely job
vacancies and information about the nature of these jobs into
a set of objectives is targets that specify the number and type
of applicants to be planned.

36. Strategy Development
i.
Make or Buy Employees
ii.
Technological Sophistication of Recruitment and
Selection Devices
iii. Geographic distribution of labour markets comprising
job seekers
iv.
Sources Of Recruitment
•
Internal sources
•
External sources

37. Searching
i.
Source Activation: Source Activation takes place when a job
vacancy exists in the organization. If the organization has
planned and well and done a good job of developing its source
and search methods, activation soon results in a flood of
application.
ii.
Selling: In selling the, both the Message and Media deserve
attention in the organization. Message refers to the
employment advertisements. Media refers to the source of any
recruiting message. For example, Employment Exchanges,
Advertises in Business magazines

38. Screening
The purpose of screening is to remove from
the recruitment process at an early stage, those
applicants who are visibly unqualified for the job.
Effective screening can save a great deal of time and
money. Care must be exercised to assure that
potentially good employees are not lost.

39. Evaluation And Control
It is necessary as considerable costs are
incurred in the recruitment process. Stastical
information should be gathered and evaluated
to know the suitability of the recruitment
process.

40. SELECTION
• Selection has been regarded as the most important function of
HR department.
• It ensures the organization that; it has right number, right kind
of people at the right place and at the right time.
Meaning and Definitions:
• “It is the process of differentiating between applicants in order
to identify (and hire) those with the greater likelihood of
success.”

41. SELECTION PROCESS
1.
Preliminary Interview
2.
Selection Tests
3.
Employment Interview
4.
Reference and Background Checks
5.
Selection Decision:
6.
Physical Examinations
7.
Job Offer
8.
Contract Of Employment
9.
Evaluation of Selection program

42. 1. Preliminary Interview:
The purpose of this interview is to
scrutinize the applicants, i.e. elimination of
unqualified applications.
2. Selection Tests:
Different types of selection tests may be
administrated, depending on the job and the
company. Generally tests are used to determine
the applicant’s ability, aptitude, and personality.

43. 3. Employment Interview:
The next step in the selection process is
employment interview, an interview is conducted
at the beginning, and at the selection process of
the employment interview can be one- to-one
interview or panel interview.
4. Reference and Background Checks:
Many employers request names,
address, telephone numbers or references for the
purpose to verify information and gaining
additional background information of an
applicant.

44. 5. Selection Decision:
Selection decision is the most critical of
all steps in selection process. The final decision
has to be made from the pool of individuals who
pass the tests, interviews and references checks.
6. Physical Examinations:
After selection decision and before the
job offer is made, the candidate is required to
undergo a physical fitness test. A job offer is
often; contingent upon the candidate being
declared fit after the physical examinations.

45. 7. Job Offer:
The next step in selection process is
job offer. Job offer is made through a letter of
appointment. Such a letter generally contains a
date by which the appointee must report on duty
8. Contract Of Employment:
Basic information is written in
Contract of employment that varies according to
the levels of job. After the offer and acceptance
of the job certain document is the attestation
form.

46. 9.Evaluation of Selection program:
The broad test of effectiveness of the
selection process is a systematic evaluation .a
periodic audit is conducted in the HR department
that outlines and highlights the areas which need to
be evaluated in the selection process

47. REDUCTION OF RECRUITMENT COSTS
• Internal Recruitment
• Print Advertising
o Magazine
o Newspaper
• Recruitment agencies
• Online recruitment
• Managed Online Recruitment

48. Placement
• Placement is the assignment or reassignment of an
employee to a new job. Most placement decisions are
made by line managers. There are three types of
placement
decisions:
promotions,
transfers
and
demotions.
• A promotion occurs when an employee is moved from a
job to another position that is higher in pay,
responsibility or organizational level. Promotions may
be based on merit or based on seniority .

49. Placement
• Transfers and demotions are the other two major
placement decisions available to the organization.
Transfers occur when the employee is moved from one
job to another position that is relatively equal in pay,
responsibility, or organizational level.
• Demotions occur when an employee is moved from one
job to another position that is lower in pay,
responsibility or organizational level.

50. Induction
• Orientation or induction is the task of introducing the new
employees to the organisation and its policies, procedures and
rules.
• A typical formal orientation programme may last a day or less in
most organisations. During this time, the new employee is
provided with information about the company, its history, its
current position, the benefits for which he is eligible, leave rules,
rest periods, etc.
• Also covered are the more routine things a newcomer must
learn, such as the location of the rest rooms, break rooms,
parking spaces, cafeteria, etc.

51. Objectives Induction
• Removes fears: A newcomer steps into an organisation
as a stranger. He is new to the people, workplace and
work environment. He is not very sure about what he is
supposed to do. Induction helps a new employee
overcome such fears and perform better on the job.
• Creates a good impression: Another purpose of
induction is to make the newcomer feel at home and
develop a sense of pride in the organisation. Induction
helps him to:
• Acts as a valuable source of information: Induction
serves as a valuable source of information to new
recruits. It classifies many things through employee
manuals/ handbook. Informal discussions with colleagues
may also clear the fog surrounding certain issues.

52. INDUCTION PROGRAMME: STEPS
• Welcome to the organisation.
• Explain about the company.
• Show the location/department where the new
recruit will work.
• Give the company’s manual to the new recruit.
• Provide details about various work groups and the
extent of unionism within the company.

53. INDUCTION PROGRAMME: STEPS
• Give details about pay, benefits, holidays, leave, etc.
Emphasize
the
importance
of
attendance
or
punctuality.
• Explain about future training opportunities and career
prospects. viii. Clarify doubts, by encouraging the
employee to come out with questions.
• Take
the
employee
on
a
guided
tour
of
buildings, facilities, etc. Hand him over to his

54. Types
Formal
Informal
Individual
Collective
Serial
Disjunctive
Investiture
Divestiture

55. Formal orientation programme
HR
representative
Organisational
issues and
Employee
benefits
Special
Anxiety
reduction
seminars
Supervisor
Specific Job
location and
Duties
Placement

56. Requisites of an effective programme
• Prepare for new employees
• Determine information new employees want
to know
• Determine how to present information
• Completion of paper work

57. Problems of orientation
1. Employee is overwhelmed with too much of
information.
2. Employee is overwhelmed with too much of
information.
3. Employee is given a menial task that discourages
him.
4. Employee is forced to fill the gaps
5. Employee is thrown into action too soon
6. Employee’s mistakes can damage the company
7. Employees may develop wrong perception.

58. TRANSFERS
• A transfer is a change in job assignment. It may involve a
promotion or demotion or no change at all in status and
responsibility. A transfer has to be viewed as a change in
assignment in which an employee moves from one job to
another in the same level of hierarchy, requiring similar
skills, involving approximately same level of responsibility,
same status and same level of pay. A transfer does not
imply any ascending (promotion) or descending (demotion)
change in status or responsibility.

59. Types of transfer

60. Benefits of transfer

61. PROMOTIONS
• Promotion refers to upward movement of an employee from
current job to another that is higher in pay, responsibility and/or
organisational level. Promotion brings enhanced status, better
pay, increased responsibilities and better working conditions to
the promotee. There can, of course, be ‘dry promotion’ where a
person is moved to a higher level job without increase in pay.
Promotion is slightly different from upgradation which means
elevating the place of the job in the organisational hierarchy or
including the job in higher grade.

62. PROMOTIONS
• A transfer implies horizontal movement of an employee to
another job at the same level. There is no increase in pay,
authority or status. Hence, it cannot act as a motivational tool.
Promotion, on the other hand, has in-built motivational value, as
it elevates the status and power of an employee within an
organisation.

63. Types of Promotion
1. Merit-based promotions: Merit based promotions occur
when an employee is promoted because of superior
performance in the current job. Merit here denotes an
individual's knowledge, skills, abilities and efficiency as
measured from his educational qualifications, experience,
and training and past employment record. The advantages
of this system are fairly obvious:
2. Seniority-based promotions: Seniority refers to the
relative length of service in the same organization.
Promoting an employee who has the longest length of
service is often widely welcomed by unions because it is
fairly objective. It is easy to measure the length of service
and judge the seniority. There is no scope for favoritism,
discrimination and subjective judgment. Everyone is sure
of getting the same, one day.

64. DISCIPLINE ACTIONS
• There are two ways of dealing with employees
who do not obey rules, indulge in acts that are
not permitted and tend to fly off the hook at the
slightest provocation:
• i.e.,
positive
progressive
discipline
discipline
approach
approach.
and
The
the
best
discipline is clearly self discipline, when most
people understand what is required at work.

66. Resignation
• An employee may decide to quit an organisation voluntarily on
personal or professional grounds such as getting a better job,
changing careers, wanting to spend more time with family, or
leisure activities. The decision could, alternatively, be traced to the
employee's displeasure with the current job, pay, working
conditions or colleagues. Sometimes an employee may be forced
to quit the organisation compulsorily on grounds of negligence of
duty, insubordination, misuse of funds, etc. The resignation in this
case, unlike voluntary separation, is initiated by the employer. If
the employee refuses to quit, he may have to face disciplinary

67. Dismissal
• Dismissal is the termination of the services of an
employee as a punitive measure for some
misconduct. Discharge also means termination of
the services of an employee, but not necessarily
as a punishment.
• A discharge does not arise from a single,
irrational act.

68. Retrenchment
• Retrenchment is the permanent termination of an
employee's services due to economic reasons (such as
surplus staff, poor demand for products, general economic
slowdown, etc.) It should be noted here that termination of
services on disciplinary grounds, illness, retirement, and
winding up of a business does not constitute retrenchment.
In respect of organisations employing 100 or more persons,
the Industrial Disputes Act, 1947, makes it obligatory for
the employer to give advance notice or pay equivalent
wages before the actual lay off date.

69. Retrenchment
• To claim 50 per cent of basic wages plus dearness allowances, the
workman (who is not a casual worker, whose name appears on pay roll,
who has completed 12 months of continuous service) must present
himself on each working day at the appointed time inside the
factory/office premises during the lay off period. If necessary, he might
be asked to report a second time during the same day. While laying off
workman, the employer is expected to follow the first-in-last-out
principle. He should give preference to such workmen if he advertises for
reemployment against future openings. The employer has to give three
months’ notice before retrenching the worker and get prior approval
from the government as well.

70. Voluntary retirement
• In case of voluntary retirement, the normal retirement benefits are calculated
and paid to all such employees who put in a minimum qualifying service.
Sometimes, the employer may encourage the employee to retire voluntarily–
with a view to reduce surplus staff and cut down labor costs. Attractive
compensation benefits are generally in-built in all such plans (referred to as
golden handshake scheme).
• To reduce post-retirement anxieties, companies these days organize counseling
sessions, and offer investment related services (e.g., Citibank, Bank of America).
Some companies extend medical and insurance benefits to the retirees
also, e.g., Indian Oil Corporation.

71. Exit Interview
• In human resource terms, an exit interview is a survey
that is conducted with an employee when he or she
leaves the company. The information from each survey
is used to provide feedback on why employees are
leaving, what they liked about their employment and
what areas of the company need improvement. Exit
interviews are most effective when the data is
compiled and tracked over time.

72. In-Person Exit Interviews
• With in-person exit interviews an HR representative
meets individually with each terminating employee.
Pros
• Can provide information regarding benefits and
retrieve company property during the interview
• Gives a personal touch to each employee
• Can probe for more information on each question
Cons
• Employees may be afraid to share sensitive or negative
information during an in-person interview
• For larger companies, it may be too time consuming to
interview every employee
• It’s difficult to track information received verbally
during an interview

73. Telephone Exit Interviews
• Telephone Exit Interviews are conducted over the
telephone by an HR Representative or an outside third
party consultant.
Pros
• Can probe for more information on each question
• Can enter data into a tracking system while conducting
the interview
• Easier to schedule than in-person interviews
Cons
• Time consuming if done in-house by an HR
Representative
• Expensive if done with an outside consultant
• Employees often reluctant to verbally share sensitive
or negative information

74. Paper and Pencil Exit Interviews
• Paper and Pencil Exit Interviews are usually
conducted by a form that is given to the
employee on their last day or mailed to the
employee’s home.
Pros
• Takes less time to provide a form compared with
conducting an in person or phone interview
• Employees can share information on paper that
they may be reluctant to say in person
Cons
• Return rates for exit interview forms average just
30-35%
• Difficult and time consuming to compile and track
the data from paper and pencil forms

75. Online Exit Interview Management Systems
Pros
• Employee self-service so easy for HR to
administer
• Employees comfortable sharing information by
computer so more honest responses
• Information automatically compiles and
tracked
• Reports available at a click of a button
• Participation rates (for WebExit customers)
double that for paper and pencil exit interviews

76. Prevention of employee turnover
•
•
•
•
•
•
•
•
•
•
Start With the Basics.
Plan Together.
Be Flexible.
Don't be Greedy.
Forget the "Use By" Date.
Reassure their Security.
Don't Forget the Rewards.
Show Interest.
Keep an Ear to the Ground.
Never Mislead.

77. Performance appraisal
• It is the systematic evaluation of the individual with
respect to his/her performance on the job and his/her
potential for development.”
• “A formal, structured system of measuring and evaluating
an employee’s job, related behaviors and outcomes to
discover how and why the employee is presently
performing on the job and how the employee can
perform more effectively in the future so that the
employee, organization, and society all benefits.”

78. Objective of Performance Appraisal
• To effect promotions based on competence and
performance.
• To confirm the services of probationary employees upon
their completing the probationary period satisfactorily.
• To assess the training and development needs of
employees.
• To decide upon a pay raise where regular pay scales
have not been fixed.

79. Objective of Performance Appraisal
• TO let the employees know where they stand in so far as
their performance is concerned and to assist them with
constructive criticism and guidance for the purpose of
their development.
• Finally, performance appraisal can be used to determine
whether programmes such as selection, training, and
transfers have been effective or not.

80. Appraisal Process

81. Ranking methods
• For comparative purposes, particularly when it is
necessary to compare people who work for different
supervisors, individual statement, ratings, or appraisal
forms are not particularly useful. Instead, it is
necessary to recognize that comparisons involve as
overall subjective judgment to which a host of
additional facts & impressions must somehow be
added. There is no single form or way to do this.

82. Critical incident appraisal
• The critical incident technique looks like a natural
to
some
people
for
performance
review
interviews, because it gives a supervisor actual
factual incidents to discuss with an employee.
Supervisors are asked to keep a record, a “little
black book,” on each employee & to record actual
incidents of positive or negative behavior.

83. Rating scale
• This technique may not yield the depth of an essay
appraisal, but it is more consistent & reliable. Typically,
a graphic scale assesses a person on the quality &
quantity of his work (is he outstanding, above average,
average or unsatisfactory?) & on a variety of other
factors that vary with the job but usually include
personal traits like reliability & cooperation. It may also
include specific performance items like oral & written
communication.

84. Management by Objectives (MBO)
• MBO requires the management to set specific,
measurable goals with each employee and then
periodically discuss the latter's progress towards these
goals. This technique emphasizes participative set goals
(that are agreed upon by the superior and the
employee) that are tangible, verifiable and measurable.
MBO focuses attention on what must be accomplished
(goals) rather than how it is to be accomplished.

85. Steps
• Set the organization's goals: Establish an organisation wide plan for
next year and set company goals.
• Set departmental goals: Departmental heads at this stage take the
broader company goals (such as improving profits by 20 per cent,
increasing market share by 10 per cent etc.) and, with their superiors,
jointly set goals for their departments.
• Discuss departmental goals: The departmental goals are now put to
discussion in a departmental meeting with subordinates. The
departmental heads would require the subordinates to set their own
preliminary individual goals, focusing mostly on what they can do to
achieve the department's goals.

86. Steps
• Define expected results: In the next step, the departmental heads and
their subordinates agree on a set of anticipatorily set short term, and
individual performance targets.
• Performance reviews: Departmental heads compare each employee's
actual and targeted performance, either periodically or annually.
While periodic review is intended to identify and solve specific
performance problems, the annual review is conducted to assess and
reward one’s overall contribution to the organisation. Because
employees are evaluated on their performance results, MBO is often
called a result-based performance appraisal system.

87. Steps
• Provide feedback: Both parties now discuss and evaluate the actual
progress made in achieving goals, where things have gone off the
track, how best to rectify the mistakes made in the past, and how the
employee could meet the targets next time, focusing attention on his
strengths. However, setting clearly measurable goals is not an easy
task. MBO demands a great deal of time to set verifiable goals at all
levels of an organisation. In the race to define everything rigidly, some
of the qualitative aspects might be ignored (such as employee
attitudes, job satisfaction etc). Often the superior may set goals at a
frustratingly high level, whereas the subordinate may wish to have it
at a comfortable level.

88. JOB EVALUATION
• An assessment of the relative worth of
various jobs on the basis of a consistent set of
job
and
personal
factors,
as qualifications and skills required.
such

89. Methods of Job Evaluation
• Non-analytical Methods:
– Ranking Method
– Job-grading Method
• Analytical Methods:
– Point-Ranking Method
– Factor-Comparison Method

90. Job Evaluation Process

91. CRITERIA FOR PROMOTIONS
• Promotion refers to upward movement of an employee from current job to
another that is higher in pay, responsibility and/or organizational level.
Promotion brings enhanced status, better pay, increased responsibilities and
better working conditions to the promotee. There can, of course, be ‘dry
promotion’ where a person is moved to a higher level job without increase in
pay. Promotion is slightly different from up gradation which means elevating
the place of the job in the organizational hierarchy (a better title is given now)
or including the job in higher grade (minor enhancement in pay in tune with
the limits imposed within a particular grade). A transfer implies horizontal
movement of an employee to another job at the same level. There is no
increase in pay, authority or status. Hence, it cannot act as a motivational tool.
Promotion, on the other hand, has in-built motivational value, as it elevates
the status and power of an employee within an organization.

92. Purposes and Advantages of Promotion
• Promotion, based either on meritorious performance or
continuous service, has powerful motivational value. It
forces an employee to use his knowledge, skills and
abilities fully and become eligible for vertical growth.
• It inspires employees to compete and get ahead of
others. Those who fall behind in the race are also
motivated to acquire the required skills to be in the
reckoning.

93. Purposes and Advantages of Promotion
• Promotion thus, paves the way for employee self development. It
encourages them to remain royal and committed to their jobs
and the organisation.
• The organisation would also benefit immensely because people
are ready to assume challenging roles by improving their skills
constantly. Interest in training and development programmes
would improve. The organisation would be able to utilize the
skills and abilities of its personnel more effectively.

94. Merit-based promotions
• Merit
based
promotions
occur
when
an
employee is promoted because of superior
performance in the current job. Merit here
denotes an individual's knowledge, skills, abilities
and efficiency as measured from his educational
qualifications, experience, and training and past
employment record.

95. Seniority-based promotions
• Seniority refers to the relative length of service in
the same organization. Promoting an employee
who has the longest length of service is often
widely welcomed by unions because it is fairly
objective. It is easy to measure the length of
service and judge the seniority. There is no scope
for favoritism, discrimination and subjective
judgment. Everyone is sure of getting the same,
one day.

96. Job enrichment
• In contrast, involves a "vertical" loading, giving a worker
more responsibility for making decisions related to the
present job. A lab technician who is responsible for berry
culture might be given the added responsibility of heading
a customer education effort on the best stage to buy plant
material, or how to care for plants coming out of tissue
culture. A cowboy may be given the added charge of
selecting his own horses to work with, and a greater hand
in animal health-care decisions.

97. Compensation management
• Compensation is what employees receive in
exchange for their contribution to the
organisation.
Total compensation =
Direct + Indirect Compensation
Base Pay
Incentives
Benefits

98. Components of employee remuneration
Remuneration
Non-financial
Financial
Basic wages
Fringe benefits
P.F.
Medical care
Accident relief
Health and
Group insurance
Incentives,
Individual plans
Group plans
Perquisites
Car
Club membership
Paid holidays
Furnished house
Stock option scheme
Job context
Challenging job
Responsibilities
Growth prospects
Supervision
Working conditions
Job sharing etc

99. Objectives of compensation planning
•
•
•
•
•
•
•
•
•
Internal equity
External equity
Individual equity
Attract talent
Retain talent
Ensure equity
New and desired behavior
Control costs
Ease of operation

100. Motivation and performance model
Feedback to
employees
Employees set
Goals and
expectations
Rewards are
given
Performance
Is rewarded
Employee considers
Equity of
Performance
rewards
Employee sets new goals and
Expectations based on prior experiences

101. Influencing factors of Remuneration
Remuneration
External
Labour Market
Cost of Living
Labour Unions
Govt.
Legislations
Society
Economy
Internal
Business Strategy
Job evaluation &
PA
The Employee

102. Devising a remuneration plan
Job Description
Job Evaluation
Job Hierarchy
Pay Survey
Pricing Jobs

103. The Development of a wage trend- line
New key Job B
10
Key Job A
9
Wages
or
salaries
8
7
6
5
Wage-trend Line
4
100
200
300
400
500
Point Values
600
700
800
900
1000

104. Challenges of remuneration
Skills-based
pay
Remuneration
Employee
participation
Comparable
worth
Salary
reviews
Pay
secrecy

105. Components of Pay Structure in India
1. Wages
• Payment of Wages Act, 1936 Section 2 (vi) – “any reward of
settlement and production bonus, if paid, constitutes
wages.”
• Minimum Wages Act, 1948, “retrenchment compensation,
payment in lieu of notice and gratuity payable on discharge
constitute wages.”
• Wages- The amount paid by the employer for the services
of hourly, daily, weekly, fortnightly to employees

106. WAGES
Remuneration of following kind do not constitute
wages under any of the acts:
(i) Bonus or other payments under a profit-sharing
scheme which do not form a part of contract of
employment of a workman.
(ii) Value of any house accommodation, supply of light,
water, medical attendance, travelling allowance, or
payment in lieu thereof or any other concession.

107. WAGES
III.
Any sum paid to defray special expenses entailed
by the nature of the employment of a workman
IV.
Any contribution to pension, provident fund, or a
scheme of social security and social insurance
benefits
V.
Any other amenity or service excluded from the
computation of wages by general or special order
of an appropriate governmental authority

108. WAGE AND SALARY ADMINISTRATION
• The term ‘compensation administration’ or ‘wage
and salary administration’ denotes the process of
managing a company’s compensation program.
• The goals of compensation administration are to
design a cost-effective pay structure that will
attract, motivate and retain competent employees.

109. WAGE AND SALARY ADMINISTRATION
Objectives
A
sound
plan
of
compensation
administration seeks to achieve the following
objectives:
• To establish a fair and equitable remuneration
offering similar pay for similar work
• To attract qualified and competent personnel

110. WAGE AND SALARY ADMINISTRATION
Objectives
• To retain the present employees by keeping wage levels
in tune with competing units
• To control labour and administrative costs in line with
the ability of the organization to pay
• To improve motivation and morale of employees and to
improve union-management relations
• To project a good image of the company and to comply
with legal needs relating to wages and salaries

111. WAGE AND SALARY ADMINISTRATION
Principles
1. Should be sufficiently flexible
2. Job evaluation must be done scientifically
3. It must be always consistent with overall
organizational plans and programs

112. WAGE AND SALARY ADMINISTRATION Cont’d
Principles
4.
It should be in conformity with the social and economic
objectives of the country like attainment of equality in
income distribution and controlling inflationary trend
5.
It should be responsive to the changing local and
national conditions
6.
These plans should simplify and expedite other
administrative process

113. WAGE AND SALARY ADMINISTRATION
Elements Wage and salary systems should have a relationship with the
performance, satisfaction and attainment of goals of individual. Wage
and salary system has following elements (Henderson):
1. Identifying the available salary opportunities, their costs, estimating
the worth of its members, of their opportunities and communicating
them to employees.
2. Relating salary to needs and goals
3. Developing quality, quantity and time standards related to work and
goals
4. Determining the effort necessary to achieve standards
5. Measuring the actual performance

114. WAGE AND SALARY ADMINISTRATION
Elements:
6. Comparing the performance with the salary received
7. Measuring the job satisfaction of the employees
8. Evaluating the unsatisfied wants and unrealized goals
aspirations of the employees
9. Finding out the dissatisfaction arising from unfulfilled needs
and unattained goals
10. Adjusting the salary levels to help employees reach
unleashed goals and fulfill the unfulfilled needs and
aspirations

115. Purpose of Wage & Salary
• Attracting talented resources
• Retaining and motivating employees
• Financial Management
• Legal Requirements

116. Minimum Wage
• Minimum wage is one which provides not
merely for bare sustenance of life, but also for
the preservation of the efficiency of worker.
For this purpose, the minimum wage must
also provide for some measure of education,
medical requirements & amenities.

117. Fair Wage
• Fair wage is understood in two ways. In a
narrow sense, wage is fair if it is equal to the
rate prevailing in the same trade & in the
neighborhood for similar work. In a wider
sense, it will be fair if it is equal to the
predominant rate for similar work throughout
the country.

118. Living Wage
• Living wage is a step higher than fair wage. Living
wage may be described as one which would enable
the wage earner to provide for himself/herself &
his/her family not only the bare essentials of life like
food, clothing, & shelter, but a measure of frugal
comfort including education for children; protection
against ill health; requirements of essential social
needs; &/or measure of insurance against the more
important misfortunes including old age.

119. Methods of Wage Payments
• Time Wage System
• Piece Wage System
1. Straight Piece Rate
2. Increasing Piece Rate
3. Decreasing Piece Rate
• Balance or Debt Method

120. WAGE DIFFERENTIALS
• Differentials in wages are inevitable in any
industry. Wage differentials perform important
economic functions like labour productivity,
attracting the people to different jobs.
• Since workers are mobile with a view to
maximizing their earnings, wage differentials
reflect the variations in productivity, efficiency of
management, maximum utilisation of human force

121. WAGE DIFFERENTIALS
Importance:
• Attracting efficient workers
• Maximization of employee commitment
• Development of skills and knowledge
• Utilization of human resources
• Maximization
of
productivity
through
wage
differentials by directly allocating manpower among
different units, occupations and regions in order to
maximize overall production

122. WAGE DIFFERENTIALS
Importance:
• Provide an incentive for better allocation of
human force – labour mobility among different
regions
• Plays a pivotal role in a planned economy in the
regulation of of wages and development of
national wage policy by allocating the skilled
human force on priority basis

123. Reasons for Wage Differentials
Wage
Differentials
Reasons
Interpersonal
differentials
Differentials in sex, skills, age, knowledge,
experience
Inter occupational
differentials
Varying requirements of skill, knowledge,
demand – supply situation
Inter – area
differentials
Cost of living, ability of employers to pay,
demand and supply situation, extent of
unionisation
Inter – firm
differentials
Ability of employer to pay, employee’s
bargaining power, degree of unionisation, skill
needs, etc

124. Principles Governing
Compensation Administration
1.
2.
3.
4.
5.
6.
7.
Maintaining Equity
Maintaining Competitiveness
Matching Employee Expectations
Reinforcing positive employee behavior
Eliminating any discrepancies
Devising a system that is most efficient
Optimization of management and
interests
8. Maintaining good IR and harmony
employee

125. PERQUISITES
• These are allowed to executive and include
company car, club membership, paid holidays,
furnished house, stock option scheme and the
like.
Perquisites
are
competent executives.
offered
to
retain

126. Fringe benefits
• Fringe benefits are compensations made to an employee
beyond the regular benefit of being paid for their work.
Some fringe benefits are fairly standard, such as offering a few
days of sick time or paid vacation time. Others can be
significantly greater, and more rare.
• Key
executives
in
large
companies
might
also
enjoy fringe benefits like use of time-share condominiums,
paid continuing education, use of a company jet, use of a
company credit card, discounted or free health club
memberships, and a significant amount of paid vacation.

127. Compensation Packages
• Base pay (Basic):
• The direct financial compensation an individual receives
based on the time Worked.
• Two bases of calculation
• Hourly/wage: payment for the number of hours worked.
• Salaried: receive consistent payments at the end of
specific period regardless of number of hours worked
Nature.

128. • Variable
pay
consists
of
the
following
components• House rent allowance, you can claim HRA if you
fulfil these three conditions:
– You have an HRA allowance as part of your salary
package
– You are staying in a rented accommodation and
paying rent for it.
– The rent exceeds 10% of your salary.

129. Cost-of-Living Index
• A cost-of-living price index measures the
changing cost of a constant standard of living.
The index is a scalar measure for each time
period. Usually it is a positive number which
rises over time to indicate that there was
inflation. Two incomes can be compared
across time by seeing whether the incomes
changed as much as the index did.

130. Dearness Allowance (DA)
Allowances paid to employees in order to enable them to face
the increasing dearness of essential commodities.
• Serves as cushion, a sort of insurance against increase in
price levels of commodities
• In India DA is linked to three factors:
(i) All India consumer price index (AICPI)
(ii) Time factor
(iii) Point factor

131. How to calculate Dearness
Allowance

132. INCENTIVES
• An incentive scheme is a plan or program to
motivate individuals for good performance. An
incentive is most frequently built on monetary
re-wards (incentive pay or a monetary bonus),
but also may include a variety of non-
monetary rewards or prizes.

133. Features of incentives
1. Incentives are based on a standard of performance for
the job.
2. Incentives are measurable in monetary terms.
3. Incentives are meant to motivate workers for better and
more performance.
4. Incentives have direct linking to performance.
5. Incentives vary from person to person and from time to
time for the same person.

134. •
•
•
•
•
•
•
•
•
Objectives
Profitable for both workers and management
Help to increase the production
Reduce cost
High up morale by rewarding workers in proportion to
their output
Recognize the worker for his good performance
Improve utilization of equipment, materials and service
Should furnish a basis for cost control and labour
control.
Reduce labour turnover and absenteeism
Aim at improve relations between workers and
management.

135. Limitations
• There is a possibility of reducing the quality of products since
incentives are usually based on output.
• workers paid by results disregard security regulation in order
to active output. It will increase the danger of accidents
• some workers may work day and night, it would affect their
health.
• jealousy and conflict may arise among employees, because
some employees will earn more .
• workers may oppose introduction of new machines, methods
as they fear that new methods or machines will decrease
their earnings.
• when production is disrupted due to management fault, the
workers will insist to get compensation.

136. Classification of Incentives
Financial incentives
• Financial
incentives
include
Salary,
premium,
reward, dividend, bonus, income from investment.
Financial incentives play a very important role in
improving the performance of the employees. Cash
plays a very important role in fulfilling the needs of
the individuals especially of labor class.

137. Non financial incentives
• As the employees have other needs like respect and
self centered needs , they can be motivated with the
help of following non-financial incentives.
• Job satisfaction
• Job security
• Respect and recognition
• Training and other employee improvement programs
• Housing/medical/educational facilities
• Opportunities for growth.
• Suggestion scheme, praise, employee-superiors
relationship etc

138. Individual incentives
• Individual incentive is the extra compensation paid
to an individual for all production over a specified
quantity.
Group Incentives
• Group incentives system involve co-operation
among employees , management and the union for
reduction in labor, material and supply costs,
strengthening of employee loyalty to the company.

139. Requirement of good incentive
• proper climate: this means that the relation between
management and employees should be good and free
from suspicion
• co-operation of workers
• Worker’s participation: wage incentive scheme should be
implemented with the consultation of workers and
union.
• Scientific standard: the scheme must be based on
scientific management.
• Simplicity: the incentive scheme should be simple and
everybody must understand it.

140. Requirement of good incentive
• Equitable: this means the scheme should give equal
opportunity to all.
• flexible: changes may be required due to technological
changes, market demand etc
• Less costly and wide coverage.
• guarantee minimum wages: it will ensure a security to all
• Ceiling on earning: the maximum amount of earnings
must be fixed. It will help to maintain quality
• grievance settlement on time
• timely payment of incentive
• Follow up: required to rectify the mistakes in incentive
scheme.’

141. Productivity Linked Bonus
• To improve business performance (e.g. productivity,
sales or profits)
• To focus employees’ efforts on key objectives such as
customer service, quality and on-time delivery
• To increase employee motivation by establishing a clear
link between pay and performance (at an individual or
team level).
• To support stakeholder ideals by allowing employees to
share in the success of the business
• To encourage change within the organization.
• To create the desired workplace culture by, e.g.
rewarding teamwork and good attendance.

142. BONUS SCHEME OPTIONS
• Feature 1 Operating level
• A bonus scheme or employee rewards strategy can
operate at any one or any combination of the following
levels:
• Individual Bonus Scheme
• Team Bonus Scheme
• Site Bonus Scheme
• Corporate Bonus Scheme
• In theory a company could operate a scheme at any one
or more of these levels. The constraining factor
however, in any bonus scheme, is cost.

143. Feature 2 Factors
• Bonus schemes can be based on a single factor or a
range of factors. Single factor schemes allow special
focus to be put on a key target or business objective.
• This may be of ongoing importance, such as profits or
productivity, or a matter that needs particular shortterm attention.
• Multi-factor bonus schemes take in a wide range of
factors and may include targets at a corporate level in
conjunction with targets aimed at particular
departments or teams.
• A similar outcome may be achieved by using a number
of single-factor or single-level schemes.

144. Productivity and Output Bonus
Schemes
• Productivity bonus schemes and output bonus
schemes are mainly used in manufacturing, e.g.
piecework, but is being used increasingly in other
sectors e.g. the AA’s patrols are measured on the
time taken from receiving details of a job to
completing it and the proportion of vehicles fixed at
the roadside. In this type of circumstance of course,
good productivity also equates with good customer
service.

145. Quality Bonus Scheme
• Again
quality
bonus
schemes
are
relatively
predominant in the manufacturing sector; it’s easy to
measure quality as the number of defects found per
day, week or month. However, the Service sector also
uses quality as a factor e.g. Companies House has a
target for the level of data capture accuracy each
month, and the critical success factors set by United
Utilities Service Delivery include meeting the water
quality index and electricity standards.

146. Safety Bonus Scheme
• Health and safety is most likely to feature as a
factor in bonus schemes in manufacturing or
other contexts where the perceived risks are
highest. Safety is taken into account in the
bonus schemes at BP Grange mouth and
Kimberley-Clark’s Barrow Mill.

147. Compensation criteria
1. Financial Performance/Profits
2. Sales
3. Customer Service /Satisfaction
4. Attendance
5. HR-related Measures
6. Project Work Targets
7. Team Working Bonus Schemes
8. Individual Performance
9. Bonus Payments

148. Feature 3 Distribution of the
Bonus Pool
• Bonuses may be paid as an equal flat rate or as a
percentage of salary across a department, site or
company. Payments may be further differentiated in
the following ways:
• Vary by grade or role
• Reflect individual performance
• Be based on team performance

149. Feature 4 Frequencies of
Payments
• The frequency of payments varies from
weekly to annually and is linked to the
objectives and types of bonus scheme
operated. Most companies make payments on
an annual basis because they have linked their
bonuses to annual profit targets.

150. Feature 5 Hurdles
• Most companies only make payments from
their bonus schemes if certain hurdles are
overcome:
1. Minimum targets for all factors
2. Threshold profit level
3. Absence triggers
4. Management Discretion

151. DEFINITION OF OCCUPATIONAL
HEALTH AND SAFETY
• Occupational health and safety (OHS) refers to
“the physical, physiological and psychosocial
conditions of an organization’s workforce,
related to aspects of work and the work
context” .

152. Responsibilities of Employer
• Provide and maintain workplace, equipment and tools
that are safe and without risk to health of employees.
• Provide information, instruction, training and supervision
necessary to ensure the health and safety at work of
employees.
• Conducting risk assessment to remove or control risks to
workers at the workplace.
• Developing and implementing procedures for dealing with
emergencies that may arise while those persons are at
work.
• Provide suitable personal protective equipment and
clothing where necessary.
• Provide adequate first aid facilities and treatment.

153. Responsibilities of Employees
• Follow all safety procedures and principles introduced at
the workplace, particularly when using or operating any
equipment and in other potentially dangerous situations.
• Report any workplace hazards and dangerous events to
their supervisor immediately.
• Cooperating with the employer on safety and health
matters.
• Report any job-related injury or illness to the employer,
and seek treatment promptly.
• Use and wear prescribed personal protective equipment
while working.
• Refraining from the operation of any equipment without
proper instructions and authorization.

154. Responsibilities of Everyone in the
Workplace
• Cooperate with his employer and any other person to such
extend as will enable his employer to comply with the
provision of the OHS Act.
• Not intentionally or recklessly interfere with or misuse
anything provided in the interest of own health, safety and
welfare.
• Not behave in a way that results risk to the safety and
health of others.

155. TYPES OF HAZARDS
• Workplace Hazards in Hotel and Their Risks
• Chemical Hazards
• Hot Working Environment
• Burns and Scalds
• Strips, Trips and Falls
• Electricity
• Fire Hazards

156. Preventive Measures
• The employer shall, in order to address identified
and assessed hazards, including ergonomics-related
hazards, take preventive measures to address the
assessed hazard in the following order of priority.
• As part of the preventive measures, the employer
shall
develop
and
implement
a
preventive
maintenance program in order to avoid failures that
could result in a hazard to employees.

157. Preventive Measures
• The employer shall ensure that any preventive measure
shall not in itself create a hazard and shall take into
account the effects on the work place.
• The preventive measures shall include steps to address: a
newly identified hazard in an expeditious manner;
• The employer shall ensure that any person assigned to
implement ergonomics-related prevention measures has
the necessary instruction and training.

158. Preventive Measures
•
•
•
•
•
•
•
First, try to eliminate the hazard
If not, reduce it
If this is not possible, protect yourself
Other administrative measures
Preventive maintenance
Hazard-free preventive measure
Record preventive measures

159. Employee Education
• The employer shall provide health and safety education, including
education relating to ergonomics.
• The employer shall provide education to an employee:
• The employer shall review the employee education program, and, if
necessary, revise it:
• Each time education is provided to an employee, the employee shall
acknowledge in writing that they received it, and the employer shall
acknowledge in writing that they provided it.
• The employer shall keep, in paper or computerized form, records of the
education provided to each employee, which shall be kept for a period
of two years after the employee ceases to be exposed to a hazard.

160. Safety audits
• A
safety
audit
will
examine
the
whole
organization in order to test whether it is meeting
its safety aims and objectives. It will examine
hierarchies, safety planning processes, decision
making,
delegation,
policy
making
and
implementation as well as all areas of safety
programme planning.

161. Who carries out a health and safety audit
• Safety audits can be conducted by safety advisers and/or HR specialists,
but the more managers, employees and trade union representatives are
involved the better. Audits are often carried out under the auspices of a
health and safety committee with its members taking an active part in
conducting them.
• Managers can also be held responsible for conducting audits within their
departments and, even better, individual members of these departments
can be trained to carry out audits in particular areas. The conduct of an
audit will be facilitated if checklists are prepared and a simple form used
to record results.
• Some organizations also use outside agencies such as the British Safety
Institute to conduct independent audits.

162. What is covered by a health and
safety audit
1. Policies
2. Procedures
3. Safety practices
• The audit should cover the questions above but its
purpose is to generate action. Those conducting the
audit will have to assess priorities and costs and draw
up action programmes for approval by the board.

163. Safety training
• Health and safety training is a key part of the preventative
programme. It should start as part of the induction course. It
should also take place following a transfer to a new job or a
change in working methods. Safety training spells out the rules
and provides information on potential hazards and how to
avoid them. Further refresher training should be provided and
special courses laid on to deal with new aspects of health and
safety or areas in which safety problems have emerged.

164. Organizing health and safety
• Management develops and implements health and safety policies and
ensures that procedures for carrying out risk assessments, safety audits
and inspections are implemented. Importantly, management has the
duty of monitoring and evaluating health and safety performance and
taking corrective action as necessary.
• Managers can exert the greater influence on health and safety. They are
in immediate control and it is up to them to keep a constant watch for
unsafe conditions or practices and to take immediate action. They are
also directly responsible for ensuring that employees are conscious of
health and safety hazards and do not take risks.

165. Organizing health and safety
• Employees should be aware of what constitutes safe working practices
as they affect them and their fellow workers. While management and
managers have the duty to communicate and train, individuals also have
the duty to take account of what they have heard and learnt in the ways
they carry out their work.
• Health and safety advisers advise on policies and procedures and on
healthy and safe methods of working. They conduct risk assessments
and safety audits and investigations into accidents in conjunction with
managers and health and safety representatives, maintain statistics and
report on trends and necessary actions.

166. Organizing health and safety
• Health and safety representatives deal with health and
safety issues in their areas and are members of health and
safety committees.
• Medical advisers have two functions: preventive and
clinical. The preventive function is most important,
especially on occupational health matters. The clinical
function is to deal with industrial accidents and diseases
and to advice on the steps necessary to recover from injury
or illness arising from work. They do not usurp the role of
the family doctor in non-work-related illnesses.
• Safety committees consisting of health and safety
representatives advise on health and safety policies and
procedures, help in conducting risk assessments and safety
audits, and make suggestions on improving health and
safety performance.

167. Work stress
• Over the last decade, organizations have become increasingly
aware of the need to manage stress. There have been two drivers
for this. The first is the need for a motivated and productive
workforce, where the negative effects of stress on attendance,
performance, job satisfaction and commitment are minimized. The
second is an organization’s legal responsibilities for the care of their
employees. The current health and safety legislation means that
employers are legally bound to make sure that their employees
aren’t made ill by their work, and this includes ill- health due to
stress

168. The nature of work-related stress
• The experience of stress occurs when the demands and pressures which
an individual encounters are not matched by that individual’s ability to
cope with those demands and pressures. It is also more likely to arise
when an individual has insufficient control over events and inadequate
support in coping with them.
• So stress cannot simply be equated with high demands and pressure,
although it is often used in this way in everyday language. A certain
amount of demand and pressure can be good for performance and may
be necessary to keep employees active and motivated. However, when
these demands and pressures are inadequately managed and become
excessive they can then lead to the experience of stress, which is not
beneficial.

169. Causes of Stress in the Workplace
• Work overload
– Quantitative: too much to do in too short a
time
– Qualitative: work that is too difficult
– Quantitative has increased in recent years due
to downsizing
• Work underload – work that is too simple
or insufficient to fill one’s time
• Both of these impact stress and health,
appears that a moderate amount of stress
is optimal

170. Causes of Stress - Continued
• Organizational Change – if not hardy, change
causes stress in individuals. Can be reduced
by including employees in planning
• Role Ambiguity – unstructured or poorly
defined job responsibilities (expected
standards, methods, schedules)
• Role Conflict – conflict between job demands
and employee’s personal standards

171. Procrastination
• Delay action for no “good” reason
• Suggestions for controlling:
– Calculate the cost of procrastination: e.g., reduce
chance of promotion
– Worst in, first out principle: tackle worst task first
– Break task into manageable chunks
– Make a commitment to other people: “I’ll give it to
you on Friday/by lunch
– Remove mind clutter: eliminate trivial items from to
do list
– Fill your schedule – provides stimulation you had
been receiving by working up to deadlines

172. Effects of Stress in the Workplace
• Mass psychogenic illness – also known as
assembly line hysteria. Isolation and
suggestibility
• Burn out – results from overwork. Includes,
– Emotional Exhaustion
– Depersonalization
– Reduced sense of personal accomplishment
– Quantity of work may stay the same, but the
quality declines, depression, apathy, irritability,
and boredom may occur

173. Workaholism
• “Addiction” to work because of anxiety and
insecurity or because of a genuine liking for
the job
• Healthy, work enthusiasts – usually have jobs
with autonomy and variety, appropriate skills
for job, and supportive families
• Unhealthy, workaholics – Compulsive, driven
to perform job tasks. Often negatively impact
co-workers

174. Treating Stress in the Workplace
• Organizational Techniques
– Provide sufficient support for change
– Provide sense of control through participation
– Clearly define employee roles
– Eliminate work over and under load
– EAPs for stress reduction (teach coping strategies)
– Provide opportunity for social support (formal or
informal)

175. Individual Techniques for Stress
Reduction
•
•
•
•
Exercise
Relaxation Training
Biofeedback
Behavior Modification

176. FACTORS INFLUENCING WORK STRESS
•
•
•
•
•
The drive for success
Changing work patterns
Working conditions
Overwork
Under-work
•
•
•
•
•
Uncertainty
Conflict
Responsibility
Relationships at work
Change at work

177. WORKING CONDITIONS
• Physical and mental health is adversely affected by
unpleasant working conditions, such as high noise levels,
lighting, temperature and unsocial or excessive hours.
OVERWORK
• Stress may occur through an inability to cope with the
technical or intellectual demands of a particular task.
• Circumstances such as long hours, unrealistic deadlines and
frequent interruptions will compound this.

178. UNDERWORK
• This may arise from boredom because there is not enough to do,
or because a job is dull and repetitive.
UNCERTAINTY
• About the individuals work role - objectives, responsibilities, and
expectations, and a lack of communication and feedback can
result in confusion, helplessness, and stress.
CHANGES AT WORK
• Changes that alter psychological, physiological and behavioural
routines such as promotion, retirement and redundancy are
particularly stressful.

179. CONFLICT
• Stress can arise from work the individual does not want to do or
that conflicts with their personal, social and family values.
RESPONSIBILITY
• The greater the level of responsibility the greater the potential
level of stress.
RELATIONSHIPS AT WORK
• Good relationships with colleagues are crucial. Open discussion
is essential to encourage positive relationships.

180. Stress Management Techniques
• Change your thinking
– Re-framing
– Positive thinking
• Change your behaviour
–
–
–
–
–
Be assertive
Get organised
Ventilation
Humour
Diversion and distraction
• Change your lifestyle
–
–
–
–
–
–
Diet
Smoking & Alcohol
Exercise
Sleep
Leisure
Relaxation

182. MANAGEMENT OF GRIEVANCES
DISSATISFACTION , COMPLAINT &
GRIEVANCES
Dissatisfaction :Anything that disturbs an employee ,
whether or not the unrest is expressed in words.
Complaint : A spoken or written dissatisfaction brought
to the attention of the supervisor or the Shop Steward (
In – Charge ).
Grievance : A complaint that has been formally
presented to a Management Representitive or to a
Union Official

183. Some Definitions of Grievances
• 1. A grievance is a formal dispute between an
employee & management on the conditions of
employment.
• 2.Grievances are complaints that have been formally
registered in accordance with the grievance
procedure.
• 3. A grievance is any dissatisfaction or feeling of
injustice in connection with one’s employment
situation that is brought to the attention of the
management.

184. Features of Grievances
• 1.Discontent or Dissatisfaction.
• 2. Dissatisfaction must arise out of employment &
not due to personal reasons.
• 3. The discontentment can arise out of real or
imaginary reasons.
• 4. The discontent may be voiced or unvoiced but it
must expression in some form.
• 5. Broadly speaking a grievance is noticeable &
traceable to real or perceived non-fulfillment of one’s
expectations.

185. FORMS OF GRIEVANCES
• a) FACTUAL.
• b) IMAGINARY.
• c) DISGUISED.

186. REASONS FOR GRIEVANCES
•
•
•
•
•
1. ECONOMIC.
2. WORK ENVIRONMENT.
3. SUPERVISION.
4. WORK GROUP.
5. MISCELLANEOUS.

187. •
•
•
•
•
•
•
•
HUMAN ASPECTS
1. Work Environment : Light , space ,heat.
2. Use of equipment : Tools / Poor Maint.
3. Supervisory Practices.
4. Personality clashes.
5. Managers’ Behavior.
6. Refused requests.
Problems wits pay / allowances.
7. Perceived inequalities in treatment : Pay ,appeals
against performance related awards.
• 8. Organizational Change.

188. EFFECT OF GRIEVANCES
• 1. On Production : Low quality of production , Low
productivity , Increase in wastage , Increase in cost of
production
• 2. On Employees : Increased absenteeism ,
Reduction in level of commitment , Increase in
accidents , Reduced level of employee morale.
• 3. On Managers : Strained superior – subordinate
relations , Need for increased supervision/control &
follow up Increase in unrest ,thereby machinery to
maintain industrial peace.

189. BENEFITS OF GRIEVANCE HANDLING PROCEDURES
• 1. It encourages employees to raise concerns without
fear of reprisal.
• 2. It provides a fair & speedy means of dealing of
grievances.
• 3. It prevents minor disagreements developing into
more serious disputes.
• 4. It saves employer’s time & money as solutions are
found for workplace problems.
• 5. It helps build in organisational climate based on
openness and trust.

190. OBJECTIVES OF GRIEVANCE HANDLING PROCEDURES
•
•
•
•
1. To enable employee to air his/her grievance.
2. To clarify the nature of grievance.
3. To investigate the reasons of dissatisfaction.
4. To obtain where possible a speedy resolution to
the porblem.
• 5. To take appropriate actions & ensure that the
promises are kept.
• 6. To inform the employee his /her right to voice the
grievance & take it to next stage of the procedure.

191. KEY FEATURES OF A GOOD GRIEVANCE HANDLING
PROCEDURE
• 1. FAIRNESS.
• 2. FACILITIES FOR REPRESENTATION.
• 3. PROCEDURAL STEPS.
• 4. PROMPTNESS.

192. •
•
•
•
•
•
DISCOVERY OF GRIEVANCES
a) Observation.
b) Grievance procedure.
c) Gripe Boxes.
d) Open Door Policy.
e) Exit Interview.
f) Opinion Survey.

193. ESSENTIAL PREREQUISITES OF A GRIEVANCE
REDRESSAL PROCEDURE
•
•
•
•
•
•
1. Conformity withstatutory provisions.
2. Unambiguous.
3. Simplicity.
4. Promptness.
5. Training.
6. Follow up.

194. STEPS IN GRIEVANCE REDRESSAL PROCEDURE
•
•
•
•
•
1. Identify grievance at the earliest.
2. Define the grievance correctly.
3. Collect data.
4. Prompt Redressal.
5. Implement and follow up.

195. Grievance Defined
• A grievance as a complaint of one or more
workers with respect to wages and allowances,
conditions of work and interpretation of
service, condition covering such areas as
overtime, leave, transfer, promotion, seniority,
job assignment and termination of service.
» International Labour Organization(ILO)

196. Definitions of Grievances
1. A grievance is a formal dispute between an
employee & management on the conditions of
employment.
2. Grievances are complaints that have been formally
registered in accordance with the grievance
procedure.
3. A grievance is any dissatisfaction or feeling of
injustice in connection with one’s employment
situation that is brought to the attention of the
management.

197. Features of Grievances
• Discontent or Dissatisfaction.
• Dissatisfaction must arise out of employment &
not due to personal reasons.
• The discontentment can arise out of real or
imaginary reasons.
• The discontent may be voiced or unvoiced but it
must expression in some form.
• Broadly speaking a grievance is noticeable &
traceable to real or perceived non-fulfillment of
one’s expectations.

198. Forms of Grievances
a) FACTUAL.
b) IMAGINARY.
c) DISGUISED.

199. Reasons of Grievances
•
•
•
•
•
1. ECONOMIC.
2. WORK ENVIRONMENT.
3. SUPERVISION.
4. WORK GROUP.
5. MISCELLANEOUS.

200. Human Aspects
1. Work Environment : Light , space ,heat.
2. Use of equipment : Tools / Poor Maintenance.
3. Supervisory Practices.
4. Personality clashes.
5. Managers’ Behavior.
6. Problems with pay / allowances.
7. Perceived inequalities in treatment : Pay, appeals
against performance related awards.
8. Organizational Change.

201. Types of Grievances
• Individual Grievance: complaint that an
action by management has violated
the rights of an individual as set out in
the collective agreement or law, or by
some unfair practice.
• Examples: discipline, demotion,
classification disputes, denial of
benefits, etc.

202. Types of Grievance
• Group Grievance: complaint by a group of
individuals, for example, a department or a shift
that has been affected the same way and at the
same time by an action taken by management.
• An example of a group grievance would be
where the employer refuses to pay a shift
premium to the employees who work on
afternoon shift when the contract entitles them
to it.

203. Types of Grievance
• Policy Grievance: complaint by the union that
an action of management (or its failure or refusal
to act) is a violation of the agreement that could
affect all who are covered by the agreement.
• Group grievances are often treated as policy
grievances.
• For example, management assigns a steady dayshift employee to work on an off shift without
regard to seniority.

204. EFFECT OF GRIEVANCES
1. On Production : Low quality of production , Low
productivity , Increase in wastage , Increase in cost of
production
2. On Employees : Increased absenteeism , Reduction
in level of commitment , Increase in accidents ,
Reduced level of employee morale.
3. On Managers : Strained superior – subordinate
relations , Need for increased supervision/control &
follow up Increase in unrest ,thereby machinery to
maintain industrial peace.

205. BENEFITS OF GRIEVANCE HANDLING PROCEDURES
• 1. It encourages employees to raise concerns without
fear of reprisal.
• 2. It provides a fair & speedy means of dealing of
grievances.
• 3. It prevents minor disagreements developing into
more serious disputes.
• 4. It saves employer’s time & money as solutions are
found for workplace problems.
• 5. It helps build in organisational climate based on
openness and trust.

206. Objectives of Grievance Handling
1. To enable employee to air his/her grievance.
2. To clarify the nature of grievance.
3. To investigate the reasons of dissatisfaction.
4. To obtain where possible a speedy resolution to the
problem.
5. To take appropriate actions & ensure that the
promises are kept.
6. To inform the employee his /her right to voice the
grievance & take it to next stage of the procedure.

207. Key Features of Grievance Redressal Procedure
1. FAIRNESS.
2. FACILITIES FOR REPRESENTATION.
3. PROCEDURAL STEPS.
4. PROMPTNESS.

208. Discovery of Grievance
a) Observation.
b) Grievance procedure.
c) Gripe Boxes.
d) Open Door Policy.
e) Exit Interview.
f) Opinion Survey.

209. Value Addition - HR Glossary
• Joint/labor
management
committee
• Key result areas
• A panel comprised of management and
union representatives whose purpose is
to address problems, resolve conflicts
and build on relationships.
• The parts of an organization’s intangible
assets that relate specifically to
knowledge, expertise, information, ideas,
best practices, intellectual property and
other capabilities.

210. Value Addition - HR Terminology
• Knowledge- based pay • A salary differentiation system that bases
compensation
on
an
individual’s
education, experience, knowledge, skills
or specialized training. Also referred to as
skill based pay.
• Knowledge
management
• The process of creating, acquiring, sharing
and managing knowledge to expand
individual
and
organizational
performance.

211. Handling Grievance
•
•
•
•
•
•
•
•
Amenities
Compensation
Conditions of work
Continuity of service
Disciplinary action
Fines
Leave
Medical benefits
•
•
•
•
•
•
•
•
Nature of job
Payments
Promotions
Safety environment
Super Annuation
Supersession
Transfers
Victimisation

212. Individual or Collective (Group)
Grievances
• It is important to make a distinction between
individual grievances and group grievances.
• If the issue involved relate to one or a few
individual employees, it needs to be handled
through a grievance procedure, but when
general issues with policy implications and
wider interest are involved they become the
subject matter for collective bargaining.

213. Reasons for Grievances
• Economic
– Wage fixation, wage computation, overtime, bonus
– Employees feel they are getting less than what they ought
to get
• Working Environment
– Poor working conditions, defective equipment and
machinery, tools, materials.
• Supervision
– Disposition of the boss towards the employee perceived
notions of favoritism, nepotism, bias etc.

214. Reasons for Grievances
• Work Group
– Strained relations or incompatibility with peers.
Feeling of neglect, obstruction and
victimisation.
• Work Organisation
– Rigid and unfair rules, too much less work
responsibility, lack of recognition.

215. Effects of Grievance
a. Loss of interest in work and consequent lack
of moral and commitment
b. Poor quality of production
c. Low productivity
d. Increase in wastage and costs
e. Increase in employee turnover
f. Increase in the incidence of accidents
g. Indiscipline
h. Unrest, etc.

216. Value Addition - HR Terminology
• Ability test
• Ability
• Absenteeism
• An assessment instrument used to
measure an individual’s abilities,
mental or physical skills level (i.e.
problem solving, manual dexterity,
etc.)
• Aptitude or competence, the skill or
proficiency needed to perform certain
tasks.
• Referred to as the habitual failure of
employees to report for work when
they are scheduled to work.

217. Grievance Procedure

218. Dispute settlement machinery
• Different methods for settlement of industrial
disputes provided in the Industrial Dispute Act
1947.
• Conciliation
• Arbitration
• Adjudication

219. Conciliation
• The Government (Central or the State) appoints conciliation
officers who are usually officials of the State Labour Department
or the officials of the Ministry of Labour Government of India.
• Appointed for a particular geographical area, usually a revenue
district.
• In certain cases the conciliation officer is appointed for a
particular industry in a particular area.
• If any industrial dispute arises between an employer and his
workmen the either can approach the Conciliation Officer for the
area in which the industry is situated and request him to hold
conciliation talks in the dispute and settle the issue.

220. • The talks initiated by the conciliation officer are called conciliation
talks.
• The conciliation talks may end in the settlement of the disputes in
which case a settlement is drafted and signed by the employer,
the workmen(trade union) and the conciliation officer.
• There may be cases when the conciliation officer may not be able
to settle the dispute for several reasons.
• In such circumstances, the conciliation officer sends a report to
the Government.
• This report is called the conciliation failure report.
• The Government may refers the issue in dispute to the Labour
Court/Industrial Tribunal.

221. Adjudication
• The Labour Court/Industrial Tribunal gets the jurisdiction to
decide an industrial only if the Government makes a reference of
that dispute to it.
• The proceedings before the Labour Court/Industrial Tribunal are
called adjudication proceedings.
• The Labour Court/Industrial Tribunal after following the procedure
prescribed under law finally gives its decision.
• This decision is sent to the Government and becomes operational
thirty days after the date of its publication by the Government.
• However, any one of the can challenge the decision by means of a
writ petition before the High Court.

222. Arbitration
• The parties agree that the issue in dispute between
them should be settled by referring the issues for
arbitration.
• The parties to the dispute can select the person who
should arbitrate the issue i.e., the arbitrator.

223. Grievance Redressal Procedure
• Grievance Redressal Procedure has been
divided into three stages:
– Stage I
– Stage II
– Stage III

224. Grievance Procedure

225. Stage - I of Grievance Redressal

227. Stage-II of Grievance Redressal

229. Stage-III of Grievance Redressal Procedure

231. The Unit Grievance Redressal
Committee/Work Committee
• Comes into picture in stage III.
• Matter to be dealt with committee include the following:
– Settlement of grievances relating to the terms and conditions of
employment of employees in the day today working
– Questions as to whether or not the Company’s rules have been followed in
any particular case, e.g. violation of acting rules
– Matters relating to discipline and conduct as between the management
and the employees
– Matters relating to severity of punishment given as a disciplinary measure.
– Complaints regarding withholding of increments.
– Questions relating to the abuse of privileges of provision of amenities

232. Limitations of committee
• The committee is not concerned with the problems of
planning and development in their wide sense.
• The committee also does not discuss matters which are
trade questions such as wages, allowance, hours of
work, leave, old age benefits and the like, which are
covered by agreement with the trade unions or by
reports of Conciliation boards or awards of Industrial
tribunal.
• Any decision of the committee must be superseded by
an agreement between the management and the union.

233. Members of Committee
• The committee consists of ten members of whom five
represent the management and five represent the
employees (Joint Management Committee)
• Management Representatives : The representatives of
the Management on the committee are nominated by
the management
• Employees Representatives : The representatives of
employees on the committee are nominated by the
union, which is registered under the Trade Union Act, is
representative of the employees and is recognized by the
management for this purpose.

234. Officers of the committee
• The Committee has a Chairman, a Vice-Chairman
and a member Secretary
• The Chairman is nominated by the management
from amongst its representatives on the committees
• The Vice-Chairman is nominated by the union from
amongst it’s employees’ representatives on the
committee.
• The Secretary is nominated by the management
from amongst its representatives on the committee

235. Tenure of Officers
• Term of office of the employee’s
representative on the committee other
than members nominated to fill casual
vacancies, is 36 months from the date of
formation of the Committee.
• A member nominated to fill a casual
vacancy holds office for the unexpired
term of his predecessor.

236. • Quorum of
meeting
• Meetings
•
At least one-third of the number of members from each
side can form the quorum for a meeting of the committee.
No quorum is necessary for an adjourned meeting.
•
The committee can meet as often as necessary but not less
than once a month.
•
• Payment to employeeThe employee’s representatives, if they attend meetings
while on duty, are paid by the Corporation their full wages
representatives
of the time they spend in the committees as if they are on
their usual duty.
• Decision of committee recommendations of the Unit Grievance Redressal
• The
Committee are not unanimous, the Chairman puts up the
case to the Central Grievance Redressal Committee for
consideration.

237. • Date and Time of
Meeting
• Notice of meeting
• Decided by chairman
• The notice of meeting with it’s
agenda is ordinarily sent by
the secretary to each member
of the committee three days
before the date of the
meeting.

238. The Central Grievance Redressal
Committee
• If the matter involves large number of employees.
• The Central Grievance Redressal Committee has the power to deal
with :– Cases which have been referred by the Unit Grievance Redressal
Committees and the non-factory employees works committee.
– Cases in which the unanimous decisions of any of the Unit Grievance
Redressal Committees and the non-factory employee’s works committee
have been objected to by management or union.
– Individual grievances or complaints of employees, which the union wishes
to discuss
– Issues of policy and their interpretation in regard to labour matters which
the union wishes to discuss.

239. Limitations of committee
• The committee is not concerned with the
problems of planning, works development and
management of the plant in the wider sense.
• Any decision of the committee can be
superseded by an agreement between the
management and the union

240. • Membership
• Term of officers
• Officers of
committee
• Quorum of
meeting
• Eight members of whom four represent
the management and four represent the
employees.
• 36 months
• Chairman, Vice-Chairman and Secretary
• Atleast half of the number of members
representing management and the
employees constitute the quorum for a
meeting of the committee. No quorum
for an adjourned meeting.

241. • Notice of meeting
• Acting on
committees
decision
• The notice of the meeting, together
with the agenda, is ordinarily sent
one day before the date of the
meeting.
• The unanimous decision of the
committee is binding on the
Management, the employees, and
the union where the decision relates
to a matter of policy or general
principle, the approval or order of
the managing agents is necessary. In
all such cases, decision of the
committee is forwarded by the
Chairman to the appropriate
authority for necessary action.

242. Informal Grievance Redressal Procedure
• More than half of the employees interviewed
said that the informal method of resolving
grievances by way of oral consultants with their
superiors is a much better and less complicated
method to undertake.
• The aggrieved employee can directly approach
his shift incharge or the section head (in case of a
major grievance) engage into a direct
consultation and have his grievance resolved
amicably in stage I itself.