HR NOTES

UNIT I

HUMAN RESOURCE MANAGEMENT (H R M)

Definition 1 – Integration
“HRM is a series of integrated decisions that form the employment relationships; their quality contributes
to the ability of the organizations and the employees to achieve their objectives.”
Definition 2 – Influencing
“HRM is concerned with the people dimensions in management. Since every organization is made up of
people, acquiring their services, developing their skills, motivating them to higher levels of performance
and ensuring that they continue to maintain their commitment to the organization are essential to
achieving organizational objectives. This is true, regardless of the type of the organization – government,
business, education, health, recreational, or social action.”

Definition 3 – Applicability
“HRM planning, organizing, directing and controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to the end that individual, organizational and
social objectives are accomplished.”

MEANING OF HRM: -
HRM is management function that helps managers to recruit, select, train and develop members for an
organization. Obviously HRM is concerned with the people’s dimensions in organizations. HRM refers to
set of programs, functions, and activities designed and carried out

Core elements of HRM

 People: Organizations mean people. It is the people who staff and manage organizations.
 Management: HRM involves application of management functions and principles for
acquisitioning, developing, maintaining and remunerating employees in organizations.
 Integration & Consistency: Decisions regarding people must be integrated and consistent.
 Influence: Decisions must influence the effectiveness of organization resulting into betterment of
services to customers in the form of high quality products supplied at reasonable cost.
 Applicability: HRM principles are applicable to business as well as non-business organizations
too, such as education, health, recreation and the like.
OBJECTIVES OF HRM: -
1. Societal Objectives: To be ethically and socially responsible to the needs and challenges of the
society while minimizing the negative impact of such demands upon the organization.
2. Organizational Objectives: To recognize the role of HRM in bringing about organizational
effectiveness. HRM is only means to achieve to assist the organization with its primary objectives.
3. Functional Objectives: To maintain department’s contribution and level of services at a level
appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as
these goals enhance the individual’s contribution to the organization. This is necessary to maintain
employee performance and satisfaction for the purpose of maintaining, retaining and motivating the
employees in the organization.

SCOPE OF HRM: -
Scope of HRM can be described based on the following activities of HRM. Based on these activities we
can summarize the scope of HRM into 7 different categories as mentioned below after the activities. Lets
check out both of them.
HRM Activities –
1. HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations

7 Categories of Scope of HRM

1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM
ROLE OF HRM
1. Advisory Role: HRM advises management on the solutions to any problems affecting people,
personnel policies and procedures.
a. Personnel Policies: Organization Structure, Social Responsibility, Employment Terms &
Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations.
b. Personnel Procedures: Relating to manpower planning procedures, recruitment and selection
procedures, and employment procedures, training procedures, management development procedures,
performance appraisal procedures, compensation procedures, industrial relations procedures and health
and safety procedures.
2. Functional Role: The personnel function interprets and helps to communicate personnel policies. It
provides guidance to managers, which will ensure that agreed policies are implemented.
3. Service Role: Personnel function provides services that need to be carried out by full time specialists.
These services constitute the main activities carried out by personnel departments and involve the
implementation of the policies and procedures described above.
Role of HR Managers (Today)

1. Humanitarian Role: Reminding moral and ethical obligations to employees

2. Counselor: Consultations to employees about marital, health, mental, physical and career problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and
groups and management.
4. Spokesman: To represent of the company because he has better overall picture of his company’s
operations.
5. Problem Solver: Solving problems of overall human resource management and long-term
organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing organizational
development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in the group and
individual relationships and labor-management relations.
Role of HR Managers (Future)
1. Protection and enhancement of human and non-human resources
2. Finding the best way of using people to accomplish organizational goals
3. Improve organizational performance
4. Integration of techniques of information technology with the human resources
5. Utilizing behavioral scientists in the best way for his people
6. Meeting challenges of increasing organizational effectiveness
7. Managing diverse workforce
FUNCTI ONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

Social Objectives (3) Legal Compliance

 Benefits

Union Management Relations

Organizational Objectives (7) Human Resource Planning

Employee Relations

Recruitment & Selection

Training & Development

Performance Appraisals

Placement & Orientation

Employee Assessment

Functional Objectives (3) Performance Appraisals

Placement & Orientation

Employee Assessment

Personal Objectives (5) Training & Development

Performance Appraisals

Placement & Orientation

Compensation

Employee Assessment

Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor market conditions, union demands and other
personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower and material resources by creating authorities and responsibilities
for the achievement of organizational goals and objectives.
3. Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation of employees to
follow the path laid-down.
5. Controlling: Regulating personnel activities and policies according to plans. Observations and
comparisons of deviations
Operational Functions of HRM

1. Procurement: Planning, Recruitment and Selection, Induction and Placement

2. Development: Training, Development, Career planning and counseling.
3. Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions, retentions, employee communication
6. Separations: Managing separations caused by resignations, terminations, lay offs, death, medical
sickness etc.
CASE STUDY–1

M/s Forex Pharmaceuticals is a reputed company in the country, known for its proactive HR policies and
practices. The vision and the mission statements of the company also categorically enunciate the
corporate social responsibility of undertaking environment-friendly manufacturing activities. Some of the
innovative HR practices of the company are:

 Change management for preparing the company in the GATT scenario.

 Culture building exercise that support self initiation, openers, honesty and integrity, team work,
etc.
 Career planning for good performs.
 Challenging and learning assignments for grooming future leaders.
 Sharing of knowledge management infrastructure, such as Intranet, which nurture and support
shared learning.
The CMD of the company received a show cause notice from the Pollution Control Board on account of
pollution created by one of the manufacturing units. The notice was well publicized in the print as well as
electronic media and the company’s image of being socially responsible was tainted. The PR managers
carried out extensive campaigns clarifying the company’s concern for the environment. The employees of
the company were perplexed with the external information and started doubting the company’s holy
vision and mission statements and also the credibility of the top management. The Head, HR, met with
the PR Manager and decided the course of action. He also held personal meetings of the CMD and top
executives with the employees in the corporate office as well as the manufacturing locations, apart from
interviews to the media. The Head, HR, in consultation with the PR Manager, created Employee
Awareness Groups (EAGs), which were empowered to inspect the pollution control mechanism being
implemented by the company. The members of EAG were counseled to tour the neighboring villagers to
create awareness among them about the responsive actions taken by the company.

1. Do you think that the company believes in practicing what it preaches?

2. Is the HR department proactive and does it display leadership capabilities in the crisis situation?

3. Do you suggest any additional steps by the HR department to address the challenges?

4. What steps should the HR department adopt to reinforce ‘the value-based management’?

MODULE II Pre-recruitment functions of HRM

Introduction

Any operating organization should have its own structure in order to operate efficiently. For an
organization, the organizational structure is a hierarchy of people and its functions.
The organizational structure of an organization tells you the character of an organization and the values it
believes in. Therefore, when you do business with an organization or getting into a new job in an
organization, it is always a great idea to get to know and understand their organizational structure.

Depending on the organizational values and the nature of the business, organizations tend to adopt one of
the following structures for management purposes.

Organizational Structure Types

Following are the types of organizational structures that can be observed in the modern business
organizations.

Bureaucratic Structures

Bureaucratic structures maintain strict hierarchies when it comes to people management. There are three
types of bureaucratic structures:

1 - Pre-bureaucratic structures

This type of organizations lacks the standards. Usually this type of structure can be observed in small
scale, start-up companies. Usually the structure is centralized and there is only one key decision maker.

The communication is done in one-on-one conversations. This type of structures is quite helpful for small
organizations due to the fact that the founder has the full control over all the decisions and operations.

2 - Bureaucratic structures

These structures have a certain degree of standardization. When the organizations grow complex and
large, bureaucratic structures are required for management. These structures are quite suitable for tall
organizations.

2 - Post-bureaucratic Structures

The organizations that follow post-bureaucratic structures still inherit the strict hierarchies, but open to
more modern ideas and methodologies. They follow techniques such as total quality management (TQM),
culture management, etc.

Functional Structure

The organization is divided into segments based on the functions when managing. This allows the
organization to enhance the efficiencies of these functional groups. As an example, take a software
company.

Software engineers will only staff the entire software development department. This way, management of
this functional group becomes easy and effective.

Functional structures appear to be successful in large organization that produces high volumes of products
at low costs. The low cost can be achieved by such companies due to the efficiencies within functional
groups.
In addition to such advantages, there can be disadvantage from an organizational perspective if the
communication between the functional groups is not effective. In this case, organization may find it
difficult to achieve some organizational objectives at the end.

Divisional Structure

These types of organizations divide the functional areas of the organization to divisions. Each division is
equipped with its own resources in order to function independently. There can be many bases to define
divisions.

Divisions can be defined based on the geographical basis, products/services basis, or any other
measurement.

As an example, take a company such as General Electrics. It can have microwave division, turbine
division, etc., and these divisions have their own marketing teams, finance teams, etc. In that sense, each
division can be considered as a micro-company with the main organization.

Matrix Structure

When it comes to matrix structure, the organization places the employees based on the function and the
product.
The matrix structure gives the best of the both worlds of functional and divisional structures.

In this type of an organization, the company uses teams to complete tasks. The teams are formed based on
the functions they belong to (ex: software engineers) and product they are involved in (ex: Project A).

This way, there are many teams in this organization such as software engineers of project A, software 

Right sizing

Right sizing is about getting the right people in the right job at the right time and at the right quality and
cost and in the right numbers!!!
Job Analysis
Developing an organizational structure, results in jobs which have to be staffed. Job analysis is
the procedure through which you determine the duties and nature of the jobs and the kinds of
people (in terms of skills and experience) who should be hired for them.’ It provides you with
data on job requirements, which are then used for developing job descriptions (what the job
entails) and job specifications (what kind of people to hire for the job). Some of the definitions of
job analysis ate given as follows, to understand the meaning of the term more clearly:
According to Michael L. Jucius, “Job analysis refers to the process of studying the operations,
duties and organizational aspects of jobs in order to derive specifications or as they called by
some, job descriptions.”
According to DeCenzo and P. Robbins, “A job analysis is a systematic exploration of the
activities within a job. It is a basic technical procedure, one that is used to define the duties,
responsibilities, and accountabilities of a job.”

1. Determine the Use of the Job Analysis Information: Start by identifying the use to which the
information will be put, since this will determine the type of data you collect and the technique you use to
collect them.
2. Collection of Background Information: According to Terry, “The make-up of a job, its relation to other
jobs, and its requirements for competent performance are essential information needed for a job
evaluation. This information can be had by reviewing available background information such as
organization charts (which show how the job in question relates to other jobs and where they fit into the
overall organization); class specifications (which describe the general requirements of the class of job to
which the job under analysis belongs); and the existing job descriptions which provide a starting point
from which to build the revised job description”.
3. Selection of Jobs for Analysis: To do job analysis is a costly and time consuming process. It is hence,
necessary to select a representative sample of jobs for purposes of analysis. Priorities of various jobs can
also be determined. A job may be selected because it has undergone undocumented changes in job
content. The request for analysis of a job may originate with the employee, supervisor, or a manager.
When the employee requests an analysis it is usually because new job demands have not been reflected in
changes in wages. Employee’s salaries are, in part, based upon the nature of the work that they perform.
Some organizations establish a time cycle for the analysis of each job. For example: A job analysis may
be required for all jobs every three years. New jobs must also be subjected to analysis.
4. Collection of Job Analysis Data: Job data on features of the job, requited employee qualification and
requirements, should be collected either form the employees who actually perform a job; or from other
employees (such as foremen or supervisors) who watch the workers doing a job and there by acquire
knowledge about it; or from the outside persons, known as the trade job analysis who are appointed to
watch employees performing a job. The duties of such a trade job analyst are (i) to outline the complete
scope of a job and to consider all the physical and mental activities involved in determining what the
worker does.; (ii) find out why a worker does a job; and for this purpose he studies why each task is
essential for the overall result; and (iii) the skill factor which may be needed in the worker to differentiate
between jobs and establish the extent of the difficulty of any job.
5. Processing the Information: Once job analysis information has been collected, the next step is to place
it in a form that will make it useful to those charged with the various personnel functions. Several issues
arise with respect to this. First, how much detail is needed? Second, can the job analysis information be
expressed in quantitative terms? These must be considered properly.
6. Preparing Job Descriptions and Job Classifications: Job information which has been collected must be
processed to prepare the job description form. It is a statement showing full details of the activities of the
job. Separate job description forms may be used for various activities in the job and may be compiled
later on. The job analysis is made with the help of these description forms. These forms may be used as
reference for the future.
7. Developing Job Specifications: Job specifications are also prepared on the basis of information
collected. It is a statement of minimum acceptable qualities of the person to be placed on the job. It
specifies the standard by which the qualities of the person are measured. Job analyst prepares such
statement taking into consideration the skills required in performing the job properly. Such statement is
used in selecting a person matching with the job.
Methods for Collecting Job Analysis Data
As discussed earlier, information is to be collected for job analysis. Such information may be collected by
the trained job analysis, superiors concerned and job holders themselves. Job information is collected
through the following methods:
1. Participant Diary/Logs: Workers can be to keep participant diary/long or lists of things they do
during the day. For every activity he or she engages in, the employee records the activity (along with the
time) in a log. This can provide you with a very comprehensive picture of the job, especially when it’s
supplemented with subsequent interviews with the worker and his or her supervisor. This method
provides
more accurate information if done faithfully. However, it is quite time consuming. Further, each job
holder may maintain records according to his own way which presents problems in analysis at later stage.
Therefore, it has limited application.
2. Interview: There are three types of interviews you can use to collect job analysis data: individual
interviews with each employee; group interviews with groups of employees having the same job; and
supervisor interviews with one or more supervisors who are thoroughly knowledgeable about the job
being analyzed. The group interview is used when a large number of employees are performing similar or
identical work, since this can be a quick and inexpensive way of learning about the job. As a rule, the
worker’s immediate supervisor would attend the group session; if not, you should interview the
supervisor separately to get that person’s perspective on the duties and responsibilities of the job.
3. Critical Incidents: In this method, job holders are asked to describe incidents concerning the job on
the basis of their past experience. The incidents so collected are analyzed and classified according to the
job areas they describe, A fairly picture of actual job requirements can be obtained by distinguishing
between effective and ineffective behaviors of workers on the job.
4. Technical Conference Method: This method utilizes supervisors with extensive knowledge of the job.
Here, specific characteristics of a job are obtained from the “experts.” Although it is a good data
gathering method, it often overlooks the incumbent worker’s perception about what they do on their job.
5. Job Performance: Under this method, the job analyst actually performs the job under study to get
first-hand experience of the actual tasks, and physical and social demands of the job. This method can be
used only for jobs where skill requirements are low and can be learnt quickly and easily. This is a time
consuming method and is not appropriate for jobs requiring extensive training.
6. Functional Job Analysis: Functional job analysis (FJA) is employee- oriented analytical approach of
job analysis. This approach attempts to describe the whole person on the job. The main features of FJA
include the following:
 The extent to which specific instruction are necessary to perform the task
 The extent to which reasoning and judgment are required to perform the task
 The mathematical ability required to perform the task and
 The verbal and language facilities required to perform the task.
7. Observation Method: Using this method, a job analyst watches employees directly on the job.
Observations are made on various tasks, activities, the pace at which tasks are carried out, and the way
different activities are performed. This method is suitable for jobs that involve manual, standardized, and
short job cycle activities. This method also requires that the entire range of activities be observable;
possible with some jobs.
8. Questionnaires: The method is usually employed by engineering consultants. Properly drafted
questionnaires are sent out to job-holders for completion and are returned to supervisors. However, the
information received is often unorganized and incoherent. The idea in issuing questionnaire is to elicit the
necessary information from job –holders so that any error may first be discussed with the employee and,
after corrections, may be submitted to the job analyst.
Human Resource Planning (HRP)
Human resource planning is important for helping both organizations and employees to prepare for the
future. The basic goal of human resource planning is to predict the future and based on these predictions,
implement programmes to avoid anticipated problems. Very briefly humans resource planning is the
process of examining an organization’s or individual’s future human resource needs for instance, what
types of
skills will be needed for jobs of the future compared to future human resource capabilities (such as the
types of skilled employees you already have) and developing human resource policies and practices to
address potential problems for example, implementing training programmes to avoid skill deficiencies.
2.4 Definition of Human Resource Planning
According to Vetter, “HRP is the process by which management determines how the organization
should move from its current man power position to desired manpower position. Through planning,
management strives to have the right time, doing things which result in both the organization and
individual receiving maximum long run benefits”.
According to Gordon Mc Beath, “HRP is concerned with two things: Planning of manpower
requirements and Planning of Manpower supplies”.

Objectives of Human Resource Planning

1. To ensure optimum utilization of human resources currently available in the organization.
2. To assess or forecast the future skill requirement of the organization.
3. To provide control measures to ensure that necessary resources are available as and when required.
4. A series of specified reasons are there that attaches importance to manpower planning and forecasting
exercises. They are elaborated below:
 To link manpower planning with the organizational planning
 To determine recruitment levels.
 To anticipate redundancies.
 To determine optimum training levels.
 To provide a basis for management development programs.
  To cost the manpower.
 To assist productivity bargaining.
 To assess future accommodation requirement.
 To study the cost of overheads and value of service functions.
 To decide whether certain activity needs to be subcontracted, etc.

HRP PROCESS

FACTORS AFFECTING HRP

MODULE III-RECURITMENT,SELECTION AND APPOINTMNET

Recruitment: Meaning and Definition

Recruitment forms a step in the process which continues with selection and ceases with the placement of
the candidate. It is the next step in the procurement function, the first being the manpower planning.
Recruiting makes it possible to acquire the number and types of people necessary to ensure the continued
operation of the organisation. Recruiting is the discovering of potential applicants for actual or anticipated
organisational vacancies.

According to Edwin B. Flippo, “Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation.”
According to Lord, “Recruitment is a form of competition. Just as corporations compete to develop,
manufacture, and market the best product or service, so they must also compete to identify, attract and
hire the most qualified people. Recruitment is a business, and it is a big business.”
In the words of Dale Yoder, “ Recruiting is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that manpower in
adequate numbers to facilitate effective selection of an efficient working force.”

Objectives of Recruitment
1. To attract people with multi-dimensional skills and experiences that suits the present and future
organizational strategies.
2. To induct outsiders with a new perspective to lead the company.
3. To infuse fresh blood at all levels of the organization.
4. To develop an organizational culture that attracts competent people to the company.
5. To search or head hunt people whose skills fit the company’s values.
6. To devise methodologies for assessing psychological traits.
7. To seek out non-conventional development grounds of talent.
8. To search for talent globally and not just within the company.
9. To design entry salary that competes on quality but not on quantum.
10. To anticipate and find people for positions that does not exist yet.
Recruitment process
Steps are….

1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making

SOURCES OF RECURITMENT
 Meaning of Selection

Selection is next to recruitment. It is the process of choosing the most suitable candidates (Properly
qualified and competent) out of many interested candidates. It is a process of selecting the best and
rejecting the rest. In this selection process, interested applicants are differentiated in order to identify
those with a greater likelihood of success in a job. Such candidates are selected and appointed.
Selection is a negative function as it relates to elimination of unsuitable candidates. 'Right man for the
right job' is the basic principle in selection. Selection of suitable candidates is a responsible type of work
as selection of unsuitable persons for jobs creates new problems before the business unit
Steps involved in the selection procedure are:-
1. Job Analysis: job analysis prepares proper background for recruitment and selection. It gives details of
a job to be performed and the human qualities and qualifications required for performing that job
efficiently. Scientific selection is possible only when it is made in the light of the details available from
job analysis. Job means an activity performed in one or the other department of a business unit. A job
includes various positions. Clear and detailed understanding of the job is called job analysis or job
study.
2. Advertisement: This medium is widely used for recruitment of all categories of personnel. Though
quite costly, it provides a wide choice as it attracts large number of candidates from all over the
 country. The qualities and qualifications expected from the candidates are usually mentioned in the
advertisement.
3. Collection of Applications Blanks : In this step, applications with necessary details are collected from
interested candidates. Some companies give advertisement in the press and ask interested candidates to
submit applications on a prescribed form.
4. Scrutiny of Applications Received : After the last date fixed for the receipt of applications, officer from
the personnel department starts the scrutiny of applications received. Incomplete applications are
normally rejected. Applicants, who do not possess required qualifications, experience, etc., are also
rejected. Along with this, the certificates, testimonials and references are checked.
5. Written Tests: After the scrutiny of applications, a final list of candidates for written tests is prepared.
The purpose of such tests is to judge the knowledge of the candidate and also to find out his :-
a. Intelligence,
b. Aptitude,
c. Capacity,
d. Interests and
e. Suitability for a specific job.
Trade test is particularly necessary in the case of technical jobs such as junior engineer, computer
engineer and research assistant and so on. At present, such test is given in the case of all types of jobs.
For example, written tests are used by Banks and public sector organisations for selection purpose.
6. It is also possible to reject candidates whose performance in such written tests is not up to the mark.
Testing of candidates is a lengthy process particularly when the number of applicants is large. In such
testing, the process of elimination can be introduced. For example, all candidates may be invited for
the first test and' the candidates with poor performance in the first test need not be called for the second
test.
7. Psychological Tests : The psychological tests given to candidates include the following tests :-
a. Intelligence test,
b. Aptitude test,
c. Interest test,
d. Achievement test,
e. Analytical test,
f. Performance test,
g. Synthetic test and
h. Personality test.
Each test needs to be given separately and each test is useful for judging specific quality of a candidate
to be selected for the executive post.
8. Personal Interview : The candidates who have shown reasonably good performance in the written
examination and psychological tests are called for personal interview. Interview technique is used
extensively for the selection of managerial posts. This interview is conducted by one interviewer or by
a group of interviewers including top officers of the company and other professional experts. The
candidate is asked various questions about his qualifications, experience, family background and
performance in the written test and psychological tests by the interviewers during the course of the
 interview. In this final interview, an attempt is made to judge overall personality of the candidate. The
selection committee notes the plus and minus points of every candidate and selects the best candidates
for appointment by applying certain uniform norms. Here, 'short-listing of candidates' is done for final
selection as per the need of the organisation. The final selection depends partly on the performance of
the candidate in the tests and also on the performance in the personal interview.
9. Reference Check : The candidate is required to give at least two references which may be :-
a. Educational,
b. Social and
c. Employment.
These references help to cross check the information provided by the candidate.
10. Medical Examination: The purpose of medical examination is to judge the general health and physical
fitness of the candidate. Candidates who are not physically fit for the specific job are rejected even
when they show good performance in the tests and personal interview. Medical test is taken in the case
of all candidates before appointment. In case of certain jobs, the test is of a general nature. However,
medical examination has special importance in armed forces.
11. Final Selection for Appointment : The selection procedure comes to an end when the final appointment
letter is sent to the candidate with a request to join the organisation on a particular date. This means the
'job is offered to the selected candidate' and he is asked to join the organisation within a specific time
limit.

MODULE -IV TRANNING AND DEVELOPMENT

Employee training and development initiatives can transform organizations with providing extra skills to
your employees to not only increase safety and productivity but training leads to higher job satisfaction,
which shows up in better corporate performance. Valuable training also includes situational training that
provides personnel the skill sets that allow them to make timely, knowledgeable decisions that benefit
both the customer and the company.

BENEFITS OF TRANNING AND DEVELOPMENT

 Increased job satisfaction and morale among employees.
 Increased employee motivation.
 Increased efficiencies in processes, resulting in financial gain.
 Increased capacity to adopt new technologies and methods.
 Increased innovation in strategies and products.
 Reduced employee turnover.
 Enhanced company image, e.g., conducting ethics training (not a good reason for ethics
training!).

Reasons for emphasizing the growth and development of personnel include:

 Creating a pool of readily available and adequate replacements for personnel who may leave or
move up in the organization.
 Enhancing the company’s ability to adopt and use advances in technology because of a
sufficiently knowledgeable staff.
 Building a more efficient, effective and highly motivated team, which enhances the company’s
competitive position and improves employee morale.
 Ensuring adequate human resources for expansion into new programs.
Benefits that a small business receives from training and developing its workers, including:
 Increased productivity.
 Reduced employee turnover.
 Increased efficiency resulting in financial gains.
 Decreased need for supervision.

Needs analysis for training and development

There are three levels of a training needs assessment:

 Organizational assessment evaluates the level of organizational performance. An assessment of

this type will determine what skills, knowledge, and abilities an agency needs. It determines what
 is required to alleviate the problems and weaknesses of the agency as well as to enhance strengths
and competencies, especially for Mission Critical Occupation's (MCO). Organizational
assessment takes into consideration various additional factors, including changing demographics,
political trends, technology, and the economy.
 Occupational assessment examines the skills, knowledge, and abilities required for affected
occupational groups. Occupational assessment identifies how and which occupational
discrepancies or gaps exist, potentially introduced by the new direction of an agency. It also
examines new ways to do work that can eliminate the discrepancies or gaps.
 Individual assessment analyzes how well an individual employee is doing a job and determines
the individual's capacity to do new or different work. Individual assessment provides information
on which employees need training and what kind.

The Five-Step Training and Development Process:- 

1. NEEDS ANALYSIS: - 
• Identify specific lob performance skills needed to improve performance and productivity. 
• Analyze the audience to ensure that the program will be suited to their specific levels of education,
experience, and skills, as well as their attitudes and personal motivations. 
• Use research to develop specific measurable knowledge and performance objectives. 

2. INSTRUCTIONAL DESIGN: -   

• Gather instructional objectives, methods, media, description of and sequence of content, examples,
exercises, and activities. Organize them into a curriculum that supports adult learning theory and provides
a blueprint for program development. 
• Make sure all materials, such as video scripts, leaders’ guides, and participants’ workbooks,
complement each other, are written clearly, and blend into unified training geared directly to the stated
learning objectives. 
• Carefully and professionally handle all program elements—whether reproduced on paper, film, or tape
—to guarantee quality and effectiveness. 

3. VALIDATION: - 
• Introduce and validate the training before a representative audience. Base final revisions on pilot results
to ensure program effectiveness. 

4. IMPLEMENTATION: - 
• When applicable, boost success with a train-the-trainer workshop that focuses on presentation
knowledge and skills in addition to training content. 

5. EVALUATION AND FOLLOW-UP:- 

• Assess program success according to: 
REACTION— Document that learners’ immediate reactions to the training. 
LEARNING— Use feedback devices or pre- and posttests to measure what learners have actually learned. 
BEHAVIOR— Note supervisors’ reactions to learners’ performance following completion of the training.
This is one way to measure the degree to which learners apply new skills and knowledge to their jobs.

TRAINING AND DEVELOPMENT (T&D) METHODS

The r e a r e s e ver a l T& D me t hods a vai l a bl e . The use of a p a r t i c ul a r m e t h od

d e pe nd s w hi c h m e t h od a c c om pl i s h e s t h e   training needs and objectives. Training
methods can be classified into two categories:

I. On-the-Job Methods

This refers to the methods of training in which a person learns  a job by actually
doing/performing it. A person works on a job  and learns and develops expertise at the same
time.

1. Understudy

In this the employee is trained by his or her supervisor. The  trainee is attached with
his or her senior and called understudy  or assistant. For example, a future manager
might spend few  months as assistant to the present manager.

2. Job rotation

This refers to shifting/movement of an employee from one  job to another on regular

intervals.

3. Special projects

The trainees' may ask to work on special projects related  with departmental objectives.
By this, the trainees will acquire  the knowledge of the assigned work and also learn how to
work with others.
4. Experience

It refers to learning by doing. This is one of the oldest methods of on-the-job training. Although
this is very effective method but it also very time-consuming and wasteful. Thus it should
be followed by other training methods.

5. Committee assignment

In this, the trainees become members of a committee. The  c o m m i t t e e i s a s s i g n e d a

p r o b l e m t o d i s c u s s a n d m a k e   recommendations.

6. Coaching

In this, the supervisor or the superior acts as a guide and  instructor of the trainee. This
involves extensive demonstration and continuous critical evaluation and correction.

II. Off-the-Job Methods

These methods require trainees to leave their workplace and concentrate their entire time towards the
training objectives. These days off-the-job training methods have become popular due to limitations of
the on-the-job training methods such as facilities and environment, lack of group discussion and full
participation among the trainees from different disciplines, etc. In the off-thejob methods, the
development of trainees is the primary task rest everything is secondary. Following are the main off-the-
job training methods:

1. Special courses and lectures

These are the most traditional and even famous today, method of developing personnel. Special courses
and lectures are either designed by the company itself or by the management/professional schools.
Companies then sponsor their trainees to attend these courses or lectures. These are the quick and most
simple ways to provide knowledge to a large group of trainees.

2. Conferences and seminars

In this, the participants are required to pool their thoughts, ideas, viewpoints, suggestions and
recommendations. By attending conferences and seminars, trainees try to look at a problem from different
angles as the participants are normally from different fields and sectors.
3. Selected reading

This is the self-improvement training technique. The persons acquire knowledge and awareness by
reading various trade journals and magazines. Most of the companies have their own libraries. The
employees become the members of the professional associations to keep abreast of latest developments in
their respective fields.

4. Case study method

This technique was developed by Harvard Business School, U.S.A. It is used as a supplement to lecture
method. A case is a written record of a real business situation/problem faced by a company. The case is
provided to the trainees for discussion and analysis. Identification and diagnose of the problem is the aim
in case study method. Alternate courses of action are suggested from participants.

5. Programmed instruction/learning

This is step-by-step self-learning method where the medium may be a textbook, computer or the internet.
This is a systematic method for teaching job skills involving presenting questions or facts, allowing the
person to respond and giving the learner immediate feedback on the accuracy of his or her answers."

6. Brainstorming

This is creativity-training technique, it helps people to solve problems in a new and different way. In this
technique, the trainees are given the opportunity to generate ideas openly and without any fear of
judgement. Criticism of any idea is not allowed so as to reduce inhibiting forces. Once a lot of ideas are
generated then they are evaluated for their cost and feasibility.

7. Role-playing

In this method, the trainees are assigned a role, which they have to play in an artificially created situation.
For example, a trainee is asked to play the role of a trade union leader and another trainee is required to
perform the role of a HR manager. This technique results in better understanding of each other's situation
by putting foot in other's shoes.

8. Vestibule schools
Large organisations frequently provide what are described as vestibule schools a preliminary to actual
shop experience. As far as possible, shop conditions are duplicated, but instruction, not output is major
objective." A vestibule school is operated as a specialised endeavor by the personnel department. This
training is required when the amount of training that has to be done exceeds the capacity of the line
supervisor; a portion of training is evolved from the line and assigned to staff through a vestibule school."
The advantage of a vestibule school is specialisation.

9. Apprenticeship training

This training approach began in the Middle Ages when those who wanted to learn trade skill bound
themselves to a master craftsman and worked under his guidance. Apprenticeship training is a structured
process by which people become skilled workers through a combination of classroom instruction and on-
the-job training.

10. In-basket exercise

In this technique, the trainees are provided background information on a simulated firm and its products,
and key personnel. After this, the trainees are provided with in-basket of memos, letters, reports, requests
and other documents related with the firm. The trainee must make sense out of this mass of paperwork
and prepare memos, make notes and delegate tasks within a limited time period."

11. Business games

Business games involve teams of trainees. The teams discuss and analyse the problem and arrive at
decisions. Generally, issues related with inventories, sales, R&D, production process, etc. are taken up for
consideration.

12. Behaviour modeling

This is structured approach to teach specific supervisory skill. This is based on the social learning theory
in which the trainee is provided with a specific model of behaviour and is informed in advance of the
consequences of engaging in that type of behaviour.

13. Sensitivity (T-group) training

In this type of training, a small group of trainees consisting of 10 to 12 persons is formed which meets in
an unstructured situation. There is no set agenda or schedule or plan. The main objectives are more
openness with each other, increased listening skills, trust, support, tolerance and concern for others. The
trainers serve a catalytic role. The group meets in isolation without any formal agenda. There is great
focus on inter-personal behaviour. And, the trainer provides honest but supportive feedback to members
on how they interacted with one another.

14. Multiple management

This technique of training was first introduced by McCormick, President of McCormick & co. of
Baltimore in 1932. He gave the idea of establishing a junior board of directors. Authority is given to the
junior board members to discuss any problem that could be discuss in senior board and give
recommendations to the senior board. Innovative and productive ideas became available for senior board

Module VI: Performance management

Performance management is the process of identifying, measuring, managing, and developing the perfor-
mance of the human resources in an organization. Basically we are trying to figure out how well
employees perform and then to ultimately improve that performance level. When used correctly,
performance management is a systematic analysis and measurement of worker performance (including
communication of that assessment to the individual) that we use to improve performance over time.
Performance appraisal, on the other hand, is the ongoing process of evaluating employee performance.
Performance appraisals are reviews of employee performance over time3, so appraisal is just one piece of
performance management.

It is the systematic assessment of an individual with respect to his or her performance on the job and his
or her potential for development in that job. Thus, performance appraisal is a systematic and objective
way of evaluating the relative worth or ability of an employee in performing his job. The two aspects of
performance appraisal considered to be important are: systematic and objective. The appraisal is said to
be systematic when it evaluates all performances in the same manner, by applying the same approach, so
that appraisal of different persons are comparable. Such an appraisal is taken from time to time according
to plan; it is not left to probability. Thus, both raters’ and ratees know the system of performance
Appraisal and its timing. Appraisal has objectivity also. Its important aspect is that it attempts at precise
measurement by trying to remove human biases and prejudices.
According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is
the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to
his present job and his potential for a better job.”

Need and Importance of Performance Appraisal

Performance is always measured in terms of outcome and not efforts. Performance Appraisal is needed in
most of the organizations in order:
(1) To give information about the performance of employees on the job and give ranks on the basis of
which decisions regarding salary fixation, demotion, promotion, transfer and confirmation are taken.
(2) To provide information about amount of achievement and behavior of subordinate in their job. This
kind of information helps to evaluate the performance of the subordinate, by correcting loopholes in
performances and to set new standards of work, if required.
(3) To provide information about an employee’s job-relevant strengths and & weaknesses.
(4) To provide information so as to identify shortage in employee regarding ability, awareness and find
out training and developmental needs.
(5) To avoid grievances and in disciplinary activities in the organization.
(6) It is an ongoing process in every large scale organization.
SOME OTHER POINTS
Personal Attention: Performance appraisal evaluation, gives employee to draw personal concern from
supervisor and talk about their own strengths and weaknesses.
2. Feedback: Employees on a regular basis get feedback of their performances and issues in which they
lack, which needs to be resolved on a regular basis.
3. Career Path: It allows employees and supervisors to converse goals that must be met to grow within
the company. This may encompass recognizing skills that must be acquired, areas in which improvement
is required, and additional qualification that must be acquired.
4. Employee Accountability: Employees are acquainted that their evaluation will take place on a regular
basis and therefore they are accountable for their job performance.
5. Communicate Divisional and Company Goals: It not only communicates employees’ individual
goals but provides an opportunity for managers to explain organizational goals and in the manner in
which employees can contribute in the achievement of those goals

Ranking Method: It is the oldest and simplest method of performance appraisal in which employees’ are
ranked on certain criteria such as trait or characteristic. The employee is ranked from highest to lowest or
from worst to best in an organization. Thus if there are seven employees to be ranked then there will be
seven ranks from 1 to 7.Rating scales offer the advantages of flexibility comparatively easy use and low
cost. Nearly every type of job can be evaluated with the rating scale, the only condition being that the
Job-performance criteria should he changed’ .In such a way, a large number of employees can be
evaluated in a shorter time period. Thus, the greatest limitation of this method is that differences in ranks
do not indicate how much an employee of rank 1 is better than the employee whose rank is last.
2. Paired Comparison: In method is comparatively simpler as compared to ranking method. In this
method, the evaluator ranks employees by comparing one employee with all other employees in the
group. The rater is given slips where, each slip has a pair of names, the rater puts a tick mark next those
employee whom he considers to be the better of the two. This employee is compared number of times so
as to determine the final ranking. This method provides comparison of persons in a better way. However,
this increases the work as the large number of comparisons has to be made. For example, to rank 50
persons through paired comparison, there will be 1,225 comparisons. Paired comparison method could be
employed easily where the numbers of employees to be compared are less. This may be calculated by a
formula N (N — 1)12 where N is the total number of persons to be compared. Where N is the total
number of persons to be evaluated.
3. Grading Method: In this method, certain categories are defined well in advance and employees are
put in particular category depending on their traits and characteristics. Such categories may be defined as
outstanding, good, average, poor, very poor, or may be in terms of alphabet like A, B, C, D, etc. where A
may indicate the best and D indicating the worst. This type of grading method is applied during Semester
pattern of examinations. One of the major limitations of this method is that the rater may rate many
employees on the better side of their performance.
4. Forced Distribution Method: This method was evolved to abolish the trend of rating most of the
employees at a higher end of the scale. The fundamental assumption in this method is that employees’
performance level conforms to a normal statistical distribution. For example, 10 per cent employees may
be rated as excellent, 40 per cent as above average, 20 per cent as average, 10 per cent below average, and
20 per cent as poor. It eliminates or minimizes the favoritism of rating many employees on a higher side.
It is simple and easy method to appraise employees. It becomes difficult when the rater has to explain
why an employee is placed in a particular grouping as compared to others.
Forced-choice Method: The forced-choice rating method contains a sequence of question in a statement
form with which the rater checks how effectively the statement describes each individual being evaluated
in the organization. There may be some variations in the methods and statements used, but the most
common method of forced choice contains two statements both of which may be positive or negative. It
may be both the statement describes the characteristics of an employee, but the rater is forced to tick only
one i.e the most appropriate statement which may be more descriptive of the employee. For example,
a rater may be given the following two statements:
(i) The employee is hard working.
(ii) The employee gives clear instructions to his subordinates.
Though both of them describe the characteristics of an employee, the rater is forced to tick only one
which appears to be more descriptive of the employee. Out of these two statements, only one statement
is considered for final analysis of rating. For example, a rater may be given the following two statements:
(i) The employee is very sincere.
(ii) Employee gives clear and fast instructions to his subordinates.
Both of the above statements are positive but the rater is supposed to rate only one which is more
appropriate of subordinate’s behavior. For ranking only one statement is considered .As the rater is not
aware about the statement to be considered the result would be free from bias. This method may be more
objective but it involves lot of problems in framing of such sets of statements.

Check-list Method: The main reason for using this method is to reduce the burden of evaluator. In this
method of evaluation the evaluator is provided with the appraisal report which consist of series of
questions which is related to the appraise. Such questions are prepared in a manner that reflects the
behavior of the concerned appraise. Every question has two alternatives, yes or no, as given below:
1. Is he/she respected by his/her subordinates? Yes/No
2. Is he/she ready to help other employees? Yes/No

7. Critical Incidents Method: This method is very useful for finding out those employees who have the
highest potential to work in a critical situation. Such an incidence is very important for organization as
they get a sense, how a supervisor has handled a situation in the case of sudden trouble in an organization,
which gives an idea about his leadership qualities and handling of situation. It is also said to be a
continuous appraisal method where employees are appraised continuously by keeping in mind the critical
situation. In this method, only the case of sudden trouble and behavior associated with these incidents or
trouble are taken for evaluation.
8. Graphic Scale Method: It is one of the simplest and most popular techniques for appraising
performances of employee. It is also known as linear rating scale. In graphic rating scale the printed
appraisal form is used to appraise each employee. Such forms contain a number of objectives, and trait
qualities and characters to be rated like quality of work and amount of work, job knowhow dependability,
initiative, attitude, leadership quality and emotional stability.
9. Essay Method: In this method, the rater writes a detailed description on an employee’s characteristics
and behavior, Knowledge about organizational policies, procedures and rules, Knowledge about the job,
Training and development needs of the employee, strengths, weakness, past performance, potential and
suggestions for improvement. It is said to be the encouraging and simple method to use. It does not need
difficult formats and specific training to complete it.
10. Field Review Method: In this method of appraisal direct superior is not going to appraise an
employee but appraised by another person, usually, from personnel department .The rater, in such a case,
appraises the employee on the basis of his past records of productivity and other information such as
absenteeism, late corning, etc. It is more suitable in a situation where an organization wants to provide
promotion to an employee. It also gives information for comparing employees from different locations
and units. It reduces partiality to some extent as personnel department person is supposed to be trained in
appraisal mechanism

Modern Methods
1. Management by Objectives (MB0): The concept of ‘Management by Objectives’ (MBO) was coined
by Peter Drucker in 1954. It is a process where the employees and the superiors come together to identify
some goals which are common to them, the employees set their own goals to be achieved, the benchmark
is taken as the criteria for measuring their performances and their involvement is there in deciding the
course of action to be followed. The basic nature of MBO is participative, setting their goals, selecting a
course of actions to achieve goals and then taking decision. The most important aspect of MBO is
measuring the actual performances of the employee with the standards set by them. It is also said to be a
process that integrates organizational objectives into individual objectives.
2. Behaviorally Anchored Rating Scales: This method is a combination of traditional rating scales and
critical incidents methods. It consists of preset critical areas of job performance or sets of behavioral
statements which describes the important job performance qualities as good or bad (for e.g. the qualities
like inter personal relationships, flexibility and consistency, job knowledge etc). These statements are
developed from critical incidents. These behavioral examples are then again translated into appropriate
performance dimensions. Those that are selected into the dimension are retained. The final groups of
behavior incidents are then scaled numerically to a level of performance that is perceived to represent. A
rater must indicate which behavior on each scale best describes an employee’s performance. The results
of the above processes are behavioral descriptions, such as anticipate, plan, executes, solves immediate
problems, carries out orders, and handles urgent situation situations. This method has following
advantages: a) It reduces rating errors) Behavior is assessed over traits. c) It gives an idea about the
behavior to the employee and the rater about which behaviors bring good Performance and which bring
bad performance.
3. Assessment Centres: It is a method which was first implemented in German Army in 1930. With the
passage of time industrial houses and business started using this method. This is a system of assessment
where individual employee is assessed by many experts by using different technique of performance
appraisal. The techniques which may be used are role playing, case studies, simulation exercises,
transactional analysis etc. In this method employees from different departments are brought together for
an assignment which they are supposed to perform in a group, as if they are working for a higher post or
promoted. Each employee is ranked by the observer on the basis of merit .The basic purpose behind
assessment is to recognize whether a particular employee can be promoted, or is there any need for
training or development. This method has certain advantages such as it helps the observer in making
correct decision in terms of which employee has the capability of getting promoted, but it has certain
disadvantages also it is costly and time consuming, discourages the poor performers etc.
4. 360 Degree Performance Appraisals: This method is also known as ‘multi-rater feedback’, it is the
appraisal in a wider perspective where the comment about the employees’ performance comes from all
the possible sources that are directly or indirectly related with the employee on his job. In 360 degree
performance appraisal an employee can be appraised by his peers, managers (i.e. superior), subordinates,
team members, customers, suppliers/ vendors - anyone who comes into direct or indirect contact with the
employee and can provide necessary information or feedback regarding performance of the employee the
“on-the-job”.
The four major component of 360 degree performance appraisal are
1. Employees Self Appraisal
2. Appraisal by Superior
3. Appraisal by Subordinate
4. Peer Appraisal.
Employee self appraisal gives an option to the employee to know his own strengths and weaknesses, his
achievements, and judge his own performance. Appraisal by superior forms the traditional part of the 360
degree performance appraisal where the employees’ responsibilities and actual performance is judged by
the superior.
Appraisal by subordinate gives a chance to evaluate the employee on the basis of communication and
motivating abilities, superior’s ability to delegate the work, leadership qualities etc. It is also known as
internal customers; the correct opinion given by peers can aid to find employees’ who are co-operative,
employees who ready to work in a team and understanding towards others.
5. Cost Accounting Method: In this method performance of an employee is evaluated on the basis of
monetary returns the employee gives to his or her organization. A relationship is recognized between the
cost included in keeping the employee in an organization and the benefit the organization gets from him
or her. The evaluation is based on the established relationship between the cost and the benefit. The
following factors are considered while evaluating an employee’s performance:
1. Interpersonal relationship with others.
2. Quality of product produced or service given to the organization.
3. Wastage, damage, accidents caused by the employee.
4. Average value of production or service by an employee.
5. Overhead cost incurred.

The Performance Appraisal Process

1. Establish Performance Standards: It begins by establishing performance standards i.e. what they
expect from their employee in terms of outputs, accomplishments and skills that they will evaluate with
the passage of time. The standards set should be clear and objective enough to be understood and
measured. The standards which are set are evolved out of job analysis and job descriptions. Standards set
should be clear and not the vague one. The expectation of the manager from his employee should be clear
so that it could be communicated to the subordinates that they will be appraised against the standards set
for them.
2. Communicating the Standards Set for an Employee: Once the standards for performance are set it
should be communicated to the concerned employee, about what it expected from them in terms of
performance. It should not be part of the employees’ job to estimate what they are expected do.
Communication is said to be two ways street, mere passing of information to subordinate does not mean
that the work is done. Communication only takes place when the information given has taken place and
has been received and understood by subordinate. . If necessary, the standards may be tailored or revised
in the light of feedback obtained from the employees.
3. Measuring of the Actual Performances: It is one of the most crucial steps of performance appraisal
process. It is very important to know as how the performance will be measured and what should be
measured, thus four important sources frequently used by managers are personal observation, statistical
reports, oral reports, and written reports. However, combination of all these resources gives more reliable
information. What we measure is probably more critical to the evaluation process than how we measure.
The selection of the incorrect criteria can result in serious consequences. What we measure gives an idea
about what people in an organization will attempt to achieve. The criteria which are considered must
represent performance as stated in the first two steps of the appraisal process.
4. Comparing Actual Performance with Standards Set in the Beginning: In this step of performance
appraisal the actual performance is compared with the expected or desired standard set. A comparison
between actual or desired standard may disclose the deviation between standard performance and actual
performance and will allow the evaluator to carry on with the discussion of the appraisal with the
concerned employees.
5. Discussion with the Concerned Employee: In this step performance of the employee is
communicated and discussed. It gives an idea to the employee regarding their strengths and weaknesses.
The impact of this discussion may be positive or negative. The impression that subordinates receive from
their assessment has a very strong impact on their self esteem and, is very important, for their future
performances.
6. Initiate Corrective Action: Corrective action can be of two types; one is instant and deals primarily
with symptoms. The other is basic and deals with the causes. Instant corrective action is often described
as “putting out fires”, where as basic corrective action gets to the source from where deviation has taken
place and seeks to adjust the differences permanently. Instant action corrects something right at a
particular point and gets things back on track. Basic action asks how and why performance deviated. In
some instances, managers may feel that they do not have the time to take basic corrective action and thus
may go for “perpetually put out fires.

PERFORMANCE FEEDBACK

Regular conversations should take place throughout the year between supervisors and employees, and
employees are encouraged to seek feedback from their supervisors. Supervisors should informally alert
employees to any performance issues as soon as possible. Supervisors have a responsibility to address
work-related concerns and complaints (Section 7.3 in Policies & Procedures); employees have a
responsibility to participate in such communications. Many performance concerns can be resolved when
they are promptly brought to the employee’s attention in a constructive way. Moreover, good
performance may be enhanced if employees are given timely and positive feedback.

PERFORMANCE REVIEWS

A performance review should include a discussion of the past year’s performance, working relationships,
and career development. Specific goals for the upcoming year should be determined, and any areas
requiring improvement should be clearly stated.  Self-appraisals are encouraged. Supervisors should
review any self-appraisal before the performance review meeting. This is also a good time for the
supervisor to review and update a job description, where needed.

CORRECTIVE ACTION

Poor work performance or misconduct should be brought to the attention of the employee promptly by his
or her supervisor. Under most circumstances, the employee should be given a meaningful opportunity to
improve his or her work performance. A discussion between the supervisor and the employee should
provide the employee an opportunity to understand the supervisor's concerns and provide any
explanation; such a conversation may resolve the issue. If the concerns are not resolved, corrective
measures such as a memorandum outlining steps to improve performance may be a helpful tool to ensure
that expectations are clear. Supervisors are encouraged to seek advice from AOs or human resources
professionals before taking written corrective action.
MOUDULE VIII
SUCCESSION PLANNING

Meaning of Succession Planning

Succession planning is the process or activities connected with the succession of persons to fill key
positions in the organization hierarchy as vacancies arise. The focus of attention is towards ‘which’
person the succession planning is needed. The focus is not more on career development but it is more
towards what kind of person is required to fill the future vacancy. Succession planning focuses on
identification of vacancies and locating the probable successor. For example in succession planning the
key concern can be who will be next CEO or what will happen if the Marketing Manager retires in
coming March.

Importance of Succession Planning

 Succession planning helps when there is a sudden need arises due to reason or retirement of a key
employee.
 Individual employee comes to know in advance the level to which he can rise if he has the ability
and aptitude for it.
 Individual employee or successor feels happy when he feels that organization is taking care of his
talents and aspirations.
 Succession planning helps create loyalty towards the organization and improved motivation and
morale of individual employees.
 Organization gains stable workforce and low employee turnover.
 Ultimately organization becomes successful in accomplishing its goals effectively.

CAREER PLANNING

Career planning is the process or activities offered by the organization to individuals to identify strengths,
weaknesses, specific goals and jobs they would like to occupy.

Career as a concept means a lifelong sequences of professional, educational and developmental

experiences that projects an individual through the world of work. It is a sequence of positions occupied
by a person during his life. Career may also be defined as amalgamation of changes in values, attitudes
and motivation that occurs as a person grows older.

In career planning, organization is concerned with strategic questions of career development. Further the
organization is concerned about if it should employ more graduates, more engineers, more scientists or
more accountants etc. Career planning provides picture of succession plan for employees as per
organizational needs. It focuses on the basis of performance, experience, could be placed where, when
and how.

Career planning is a process of integrating the employees’ needs and aspirations with organizational
requirements.

Objectives of Career Planning

1. Build commitment in the individual

2. Develop long-range perspective
3. Reduce personal turnover expenses
4. Lessen employee obsolescence
5. Ensure organizational effectiveness
6. Allow individual to achieve personal and work related goals.

Importance of Career Planning

Career planning is important because it helps the individual to explore, choose and strive to derive
satisfaction with his own career objectives.

CASE STUDY
“There it is finished”, thought Sanjiv Choudhary as he laid aside the last of 12 Performance forms. It had
been a busy week for Sanjiv, who supervises a road maintenance crew for Department of Highways,
Indiana Police. In passing through the Sanjiv's districts a few days earlier, the governor had complained to
the area Superintendent that the repairs were needed on several of high ways. Because of this, the
Superintendent assigned Sanjiv crew an unusually heavy work load. In addition, Sanjiv received a call
from the personnel office that week telling him that the performance appraisals were late. Sanjiv
explained that his predicament, but the personnel specialist insisted that the forms be completed right
way.
Looking over the appraisal again, sanjiv thought about the several of the workers. The performance
appraisal from had places for marking quantity of work, quality of work, and cooperativeness. For each
characteristic, the worker could be graded as outstanding, good, average, below average or
Unsatisfactory. As Sanjiv’s crew had completed all the extra work assigned for that week, he marked the
every worker outstanding in quantity of work. He marks David average in cooperativeness because David
had questioned one of is decisions that week. Sanjiv had decided to patch a pothole in one of the roads,
and David thought the small section of the road surface ought to be broken out and replaced. Sanjiv did
not include this in the remarks section of the form, though. As a matter of fact, he wrote no remarks on
any of the forms.
Sanjiv felt a twinge of guilt as he thought about Robert. He knew that Robert had been sloughing off, and
the other workers had been carrying him for quite some time. He also knew that Robert would be upset if
the found that he had been marked lower that the other workers. Consequently, he marked Robert the
same to avoid a confrontation.“Anyway”, Sanjiv thought,” these things are a pain, and I really should not
have to bother with them. As Sanjiv folded up the performance appraisal and put them in the envelop for
mailing, he smiled. He was glad he would not have to think about the performance appraisals for another
six months.

QUESTIONS
1. What weaknesses do you see in Sanjiv's potential and performance?