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Human Resource Management INTRODUCTION Human resource management (HRM) is an approach to the management of people, based on four fundamental principles. First, human resources are the most important assets an organisation has and their effective management is the key to its success. Second, this success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans. Third, the corporate culture and the values, organisational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence. This culture must, therefore, be managed which means that organisational values may need to be changed or reinforced, and that continuous effort, starting from the top, will be required to get them accepted and acted upon. Finally, HRM is concerned withintegration - getting all the members of the organisation involved and working together with a sense of common purpose Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

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Page 1: Human Resource Management - docshare01.docshare.tipsdocshare01.docshare.tips/files/7069/70693860.pdf · Human Resource Management INTRODUCTION ... changing their HR policies to stick

Human Resource Management

INTRODUCTION

Human resource management (HRM) is an approach to the management of people,

based on four fundamental principles. First, human resources are the most important

assets an organisation has and their effective management is the key to its success.

Second, this success is most likely to be achieved if the personnel policies and

procedures of the enterprise are closely linked with, and make a major contribution to,

the achievement of corporate objectives and strategic plans. Third, the corporate

culture and the values, organisational climate and managerial behaviour that emanate

from that culture will exert a major influence on the achievement of excellence. This

culture must, therefore, be managed which means that organisational values may need

to be changed or reinforced, and that continuous effort, starting from the top, will be

required to get them accepted and acted upon. Finally, HRM is concerned withintegration - getting all the members of the

organisation involved and working together with a sense of common purpose

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

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India’s changing HRM horizonThe outlook to Human Resource Management in India has witnessed sea-change in last two decades. Economic liberalization in 1991 created a hyper-competitive environment. As international firms entered the Indian market bringing with them innovative and fierce competitiveness, Indian companies were forced to adopt and implement innovative changes in their HR practices. Increasing demand for skilled performers forced the companies to shift focus on attracting and retaining high-performing employees in a competitive marketplace.

HRM ChallengesOne of the challenges HR managers face is issues of upgradation of the skill set through training and development in the face of high attrition. Indian companies are recognizing their responsibilities to enhance the employee’s opportunity to develop skills and abilities for full performance within the position and for career advancement.

Progressive HR PoliciesIn 1974, an angry Sudha Murthy had to write a letter to JRD Tata to protest against job discrimination against women in Telco. Today, most Indian companies are committed to providing equal employment opportunities for all. The employers are increasingly realizing the value of trained human resource, especially women in India. Some organizations are changing their HR policies to stick with their valuable employees. MNCs like Pepsico are providing flexibility so that female employees at various life stages could benefit from these policies like working from a different city, sabbatical from corporate life, and extended maternity leave.

HR in IndiaIndia is now a world player in the international market. We are a country of more than a billion people and a crucial part of any major organization’s travel plans. With a GDP growth of over 9%, India is the success story the world over. And the fact that Indian companies are moving into the West means that all’s pretty sound in India Inc.

The concerns come with the growth. The major concerns are the people in any growing organization. The labor market is tight. Salaries have been impacted this year, but think of the hikes people had gained in the last two years. And it is in such a scenario, that human resource management is most critical. So critical, that a lack of it can cause serious injury to business. Indian HR management needs to buck up to the rising challenges which employees are facing. An upgrade to global practices might be the first solution.

There are some who feel that India’s greatest boon is its exploding population. That out of more that a billion people, the number of literate and qualified population can only increase.

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However, only 2 per cent of our population right now can speak English fluently. The education system is woefully short of western standards. What we are competent in, is IT education. Thus, the whole India-is-synonymous-with-IT story. But, ironically, The IIMs and the IITs are producing extremely competent, literate, business and tech savvy individuals - the best of the best. Staring salaries are still top notch. But the average engineering college or management institute is woefully short of quality. Also, a great IT education system is just not enough. The country still needs good automobile engineers, agriculturists and petrochemical engineers, to name a few.

Where does human resource management fit in? The answer is simple:

1. Select the right individuals. The right individual need not come from the ‘same background’. The right individual need not come from the ‘right college’. Companies need to look out of the box. There is quality available everywhere. Substantial investment in training could be the key. After all, it is well known that workers can be trained to perform better. HR can look within the company as well, to identify someone who fits the job. People who are bored of their present role, perhaps?

2. Keep them happy: India faces one of the highest attrition rates in the world. Attrition is a terrible cost to any company. Employees are as important as the product or service. Employees make the product and offer the service. They need to be kept satisfied. Competitive compensation, innovative incentives and ESOPs are ways to keep employees satisfied. Nothing works better than a workplace where an employee receives recognition, reward and respect.

3. Innovation: Though salaries are the most important factor in choosing a job, they form a very small part of the overall job satisfaction. A workplace can be made ideal, primarily through innovative techniques. More and more Tech Parks are coming up with better ideas and can be used as examples in other locations. Jogging parks, cafeterias, libraries, competitions – all small ways to make workplaces fun, to be in. Keen interest needs to be shown towards tracking careers. Internal job movements, training (both external and internal) are proven methods of increasing productivity and ensuring development.

Indian HR needs to go past the recruiting and hiring mode. Innovation needs to be blended in. The economy is sound, the situation, lucrative. Quality, however, is something that everyone, at every level has to strive for.

Features of HRM or characteristics or nature

1. HRM involves management functions like planning, organizing, directing and controlling

2. It involves procurement, development, maintenance of human resource

3. It helps to achieve individual, organizational and social objectives

4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology.

5. It involves team spirit and team work.

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Objectives

The primary objective of HRM is to ensure the availability of competent and willing workforce to an organisation. Apart from this, there are other objectives too. Specifically, HRM objectives are four fold: societal, organisational, functional, and personal.

Societal Objectives

The societal objectives are socially and ethically responsible for the needs and challenges of society. While doing so, they have to minimize the negative impact of such demands upon the organisation. The failure of organisations to use their resources for society’s benefit in ethical ways may lead to restrictions. For example, the society may limit human resource decisions to laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of societal concern.

Organisational Objectives

The organisational objectives recognise the role of human resource management in bringing about organisational effectiveness. Human resource management is not an end in itself; it is only a means to assist the organisation with its primary objectives. Simply stated the human resource department exists to serve the rest of the organisation.

Functional Objectives

Functional objectives try to maintain the department’s contribution at a level appropriate to the organisation’s needs. Human resources are to be adjusted to suit the organisation’s demands. The department’s level of service must be tailored to fit the organisation it serves.

Personal Objectives

Personal objectives assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organisation. Personal objectives of employees must be met if they are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline giving rise to employee turnover

The important assumptions of HRM are as follows:

1) The members of an organisation are reservoirs of untapped resources. 2) There is scope for unlimited development of these resources.3) It is more in the nature of self-development than development thrust from outside.4) The organisation also undergoes development with the overall benefits along with the development of its members.5) The organisation further develops a culture in which utmost emphasis is placed on harmonious superior-subordinate relations, teamwork, collaboration among different groups of individuals, open communication, and above all, integration of the goals of the organisation with the needs of the employees. 6) Top management takes the initiative for HRM, formulates necessary plans and

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strategies, and creates an overall climate and support for its implementation.

Components:

Currently Human Resource Management Systems encompass:

1. Payroll2. Work Time3. Appraisal performance4. Benefits Administration5. HR management Information system6. Recruiting/Learning Management # TrainingSystem7. Performance Record8. Employee Self-Service

The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems.

The work time module gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions.

The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement.

The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization. Initially, businesses used computer based information systems to:

• produce pay checks and payroll reports;• maintain personnel records;• pursue Talent Management.

Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent Management systems typically encompass:

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• analyzing personnel usage within an organization;• identifying potential applicants;• recruiting through company-facing listings;• recruiting through online recruiting sites or publications that market to both recruiters

and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated Applicant Tracking System, or 'ATS', module.

The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management System if a stand alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics.

The Employee Self-Service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel. The module also lets supervisors approve O.T. requests from their subordinates through the system without overloading the task on HR department.

Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security, while others integrate an outsourced Applicant Tracking System that encompasses a subset of the above.

Human Resource Management: Functions

1. Human resource or manpower planning.2. Recruitment, selection and placement of personnel.3. Training and development of employees.4. Appraisal of performance of employees.5. Taking corrective steps such as transfer from one job to another.6. Remuneration of employees.7. Social security and welfare of employees.8. Setting general and specific management policy for organizational relationship.9. Collective bargaining, contract negotiation and grievance handling.10. Staffing the organization.11. Aiding in the self-development of employees at all levels.12. Developing and maintaining motivation for workers by providing incentives.13. Reviewing and auditing man¬power management in the organization14. Potential Appraisal. Feedback Counseling.

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15. Role Analysis for job occupants.16. Job Rotation.17. Quality Circle, Organization development and Quality of Working Life.

The main functions of Human resource Management are;

• Job Design (JD)• Job Analysis• Human Resource Planning (HRP)• Recruitment• Selection• Hiring• Induction• Performance Evaluation• Compensation Management• Training and Development• Employee Movements• Welfare Administration• Health and safety Administration• Discipline Administration• Grievance Handling• Labour Relations

Job Design (JD)

JD can be defined as the function of arranging tasks duties and responsibilities in to an organizational unit of work for the purpose of accomplishing a certain objective.

Techniques of JD

Scientific Techniques: This is done by observing past performances.

Job Enlargement: Adding more duties to a job that is related to the current duties of involved (Horizontal Loading)

Job Rotation: Shifting an employee from one job to another periodically.

Job enrichment: Increasing the depth of a job by increasing authority and responsibility for planning

Group Technique: The job ids designed so that a group of individuals can perform it, the job being a collective job.

Job Analysis

This includes the systematic analysis of the job and the characteristics of the desired job holders. The information collected through a Job Analysis is of two forms;

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Job Description: Describes the job, its tasks, responsibilities and service conditions of a job.

Job Specification: Describes the requirements of the person for the job, including abilities, educational qualifications, special physical and mental skills, training, experience etc.

Human Resource Planning (HRP)

HRP can be identifies as the strategy forecasting the organizations future requirements for different types of workers, their acquisitions, utilization, improvement, employee cost control, retention and supply to meet these needs.

The HR Planning Process

HRM Planing Process

Factors considered when forecasting future HR requirements.

• Demand for the organization’s good/services• Plans goals and objectives• Method of productions• Retirement, transfers, resignations• Death• Retrenchments

Recruitment

This is the initial attraction and screening of the supply of prospective Human Resources available to fill a given position/s.

In other words, it is the process of involving the attraction of suitable candidates to vacant positions from both internal and external sources of the organization.

Eg:

INTERNAL EXTERNALJob posting AdvertisingIntranet Job Placement AgenciesSuccession plans Internet

ReferralsPlacement through Colleges and Universities

Selection

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This is a systematic process of selecting the most appropriate and suitable person to a particular job. In other words, Selection is choosing an individual to hire from all those who have been recruited/ attracted.

Methods of Selection

Application Evaluation: This involves choosing the most appropriate person through evaluating the applications sent by the candidates

Interviews: this is to face a meeting with a member/s of the management. One of te most commonly used methods of selection but it requires careful planning.

Eg: One on one interviews, Panel interviews, Sequence interviews

Tests: this is meaning the candidates for qualities relevant to performing available jobs.

Eg: Knowledge Tests, Aptitude Tests, Practical Tests, IQ Tests.

Background Investigations: this is assessing the appropriateness of an applicant by investigating into his/her family, financial positions, Residential Background, criminal background etc.

Medical Tests: this involves assessing the applicant’s physical fitness for particular jobs.

Hiring

This is the process of appointing the person selected for a particular job. In this process, letters of appointments will be prepared, employment contracts will be signed and the new employee will be sent in for a probationary period.

(Probationary period: the time period where the newly appointed employee will have to work till he/she is made permanent)

Induction

This is concerned with introducing an employee to the company, job and staff in a systematic way. There are two components of induction,

• Introducing the employee to the organization and the organization’s culture.• Introducing the employee to his/her job

Performance Evaluation

This is a regular systematic assessment of an employee’s performance in order to review whether his/her performance matches the expected performance levels. Performance evaluations are an analysis of an employee””s recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee””s performance in a job based on considerations other than productivity alone.

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Compensation Management

The main objective of the function is to develop and maintain a good salaried and wages system which is reasonable both internally and externally.

Factors affecting Salaries and Wages

• Cost of living• Supply and demand of labor• Government requirements (minimum wage rates)• Competitor wage scales• Trade Union influences• Labor productivity

Training and Development

Training is the process by which the employees are taught skills and given the necessary knowledge to carry out their responsibilities to the required standard. In other words, it is the improvement of the performance to carry out the current job.

Development is concerned with the giving the individual necessary knowledge, skills, attitude and experience to enable an employee to undertake greater and more demanding roles and responsibilities in the future. Development is concerned with the long term prospects of a career succession plan.

Methods of training and development

• Apprenticing• On the job training• Off the job training• Simulations• Role playing• Case studies

Employee Movements

The movements of employees take place in three methods,

• Promotions: this is the re-assignment of an employee to a higher ranked job in terms of responsibility, respect and salaries. Promotions are usually based on seniority, competency and merit.

• Transfers: this is the movement of an employee from one job to another on the same occupational level and at the same level of wage or salary.

• Lay off: This is the temporary stoppage or suspension of the service of the employee to various reasons.

Welfare Administration

This refers to all the facilities and comforts given to the employee by the employer apart from wages, salaries and incentives.

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• Medical facilities• Canteen facilities• Housing facilities• Transport facilities• Recreation facilities• Loan facilities• Educational facilities

Health and safety Administration

This is concerned with maintaining required and reasonable levels of professional Health and safety in the job and its environment. The organization should ensure the employees physical and mental health. The work place should be free of hazards.

Discipline Administration

It is important to control the performance and behavior of the employees according to the rules and regulations of the organization. For this very reason it is important to develop, implement and maintain an appropriate disciplinary system.

Importance of a discipline administration:

• To reduce conflicts and confusions• To control the employees in an orderly manner• To ensure employees behavior in accordance with performance standards, rules and

regulations of the organization.

Grievance Handling

A grievance can be identified as a situation where the employee is in metal distress, dissatisfies or has a bad attitude, due to a work related unreasonable or unjust situation.

A grievance could take place for various reasons;

• Job related reasons• Work services related reasons• Employee management related reasons• Service conditions related reasons• Employee behavior related reasons

Labour Relations

The continues relationship between the labour force and the management. Since labour forces are organized as Trade Unions, it is actually a relationship between Trade union representative and the management. However the Government is also an involved as a third party in order to regulate this relationship by ways of laws.

This relationship is also more commonly known as a tri-partite relationship.

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If in case there is a dispute between the employees and the management, the most common way of dispute resolution is through negotiations or Collective Bargaining and when the two parties reach to an agreement it’s known as Collective Agreement.

Collective Bargaining: this can be identified as the negotiation that takes place between the management and the Trade unions during a particular time period regarding labour/Industrial issues.

Collective Agreement: The agreements which the management and the Trade unions get into after a collective Bargain.

NEED FOR HUMAN RESOURCE PLANNINGEvery organization has to plan for Human resource due to:

1. The shortage of certain categories of employees and/or variety of skills despite the problem of unemployment.2. The rapid changes in technology , marketing, management etc., and the consequent need for new skills and new categories of employees.3. The changes in organization design and structure affecting manpower demand.4. The demographic changes like the changing profile of the workforce in terms of age, sex ,education etc.5. The Government policies in respect to reservation ,child labor, working conditions etc.6. The labor laws affecting the demand for and supply of labor.7. Pressure from trade unions, politicians ,sons of the soil etc.8. Introduction of lead time in manning the job with most suitable candidate.

Benefits of Human Resource Planning

Human Resources Planning (HRP) anticipates not only the required kind and number of employees but also determine the action plan for all the functions of personnel management .The major benefits of Human resource planning are:

1. It checks the corporate plan of the organization2. It offsets uncertainly and change .But the HRP offsets uncertainties and changes bto the maximum extent possible and enables the organization yo have right men at right time and in right place.3. It provides scope for advancement and development of employees through training, development etc.4. It helps to anticipate the cost of salary enhancement, better benefits etc.

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5. It helps to anticipate the cost of salary , benefits and all the cost of human resources facilitating the formulation of budgets in an organization.6. To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organizations and government through remodeling organizational, industrial and economic plans.7. To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal ,management etc.8. To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centres. quarters, company stores etc.9. It gives an idea of type of tests to be used and interview techniques in selection based on the level of skills ,qualifications, intelligence, values etc., of future human resources.10. It causes the development of various sources of human resources to meet the organizational needs.11. It helps to take steps to improve human resource contributions in the form of increased productivity ,sales turnover etc.12. It facilities the control of all the functions, operations, contribution and cost of human resources.

HRM strategies, also known as Human Resource Management strategies, are your organization's plans for managing people, culture, structure, and training and development, and for determining how people fit into your organization's future growth.

Peopleo One of the first aspects of your HRM strategy is determining the type of

person who is needed to work in the organization. This is not just a matter of personality but also of the personalities and work styles that are needed to help your organization achieve its overall business strategy. Do the people in your organization need to be numbers-oriented, outgoing and focused on sales, or a combination of both? Consulting firms such as Bernard Hodes Group or human resources management software such as Oracle's PeopleSoft can help your organization create and manage an effective "people framework."

Programs

o Your organization's programs include several elements. The first is attracting the kinds of people you've decided are the right fit. How will the organization advertise positions and recruit the talent you've decided you need? After you've made the right hires, you have to look at how to train people to do their jobs effectively. In addition to training, your organization must decide how to retain employees after hiring and initial training. Your organization should also determine if there will be a bonus structure, a rewards program or further training that will lead to promotion in the future.

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Culture

o A large part of your HRM strategy relates to the overall culture of the organization. You should take the time to determine the leadership and management style of the organization. Is it autocratic, "open door," proactive or dictatorial? Your organization's senior management should decide on a closely related range of styles in order for a culture to "trickle down." On the other hand, what beliefs, values or missions does the organization want to achieve? This could be related to customer service, beating the competition or rising to the top of the market itself. One of the best ways to begin thinking about your organization's culture is to research how other organizations and human resources professionals have created a culture. You can start your research on the Web via Workforce Management or the Society for Human Resources Management.

Structure

o HRM strategy also extends to your organization's structure. You must decide what jobs will carry out which functions. Along with this, you should determine which jobs go with which departments--and who is going to manage those departments. A human resources consulting firm can help you with this structure or you can learn about job descriptions and job evaluation at HR.com.

Development

o One of the final pieces of your HRM strategy is the development of the organization. You've already decided how to train the people you bring in, but what are the plans for training them in the long run? Will you offer leadership training as part of the overall development plan? Will you give employees the opportunity to take courses that will allow them to apply for promotion? Does the organization plan to publish "learning plans" that allow an employee to map out his future career, even if it isn't in the department in which he started out? Talent and learning management system providers like GeoLearning or Learn.com can help you map out development plans, see sample learning strategies, and decide how to manage training within your organization.

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HRM process

HUMAN RESOURCE MANAGEMENT PROCESS:

HR is a vast field that sets off, builds a strategy, executes and ends with a enduring solution. To deal with Human Resources seems to be very easy, but when it comes to be the player then starts the real snag in handling it. It is always easy to underscore someone or to that matter anyone about anything. However, the best is always esteemed.

HR in a company is always reachable to each one of them irrespective of the levels. To start or make the first move it is the HR department that any one should get in touch with. They strategize the policies and procedures in the company for which it would have been a year, to do so provided the focus is on to Quality processes.

HR includes the following processes:

1. Recruitment & selection

2. Training and development

3. Compensation and Benefits

4. Performance Management System

5. Employee relations

Component should be consistent with the others, organization structure, and strategy.

i. Recruitment: Develop a pool of qualified applicants.

ii. Selection: Determine relative qualifications & potential for a job.

iii. Training & Development: Ongoing process to develop worker’s abilities and skills.

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iv. Performance Management System: Provides information about how to train, motivate, and reward workers. Managers can evaluate and then give feedback to enhance worker performance.

v. Employee Relations: Managers need an effective relationship with labor unions that represent workers. Unions help establish pay, and working conditions.

vi. Pay and Benefits: High performing employees should be rewarded with raises, bonuses. Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm.

HR Planning

There are many ways to define HR planning, or explain what it is, but the following definitions, taken from the Government of Canada human resources site, is a good, useful working definition:

Rigorous HR planning links people management to the organization’s mission, vision, goals and objectives, as well as its strategic plan and budgetary resources.

A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost.

Note the emphasis on linkage to strategic planning and business planning in the first sentence, and the emphasis on the arrangement and alignment of staff and employees in the last sentence.

Here’s another definition, perhaps a bit simpler:

The processes by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization, reach its objectives.

Human resource planning refers to the planning of human resource functions, or in other words, planning how human resource management will be executed.

Recruiting

Selecting

Hiring

Orienting

Training and retraining

Motivating

Coaching

Mentoring

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Counseling

Recognizing achievements

Empowering

Communicating

Evaluating

Promoting

Laying off

Dismissing

So, in effect HR planning refers to the development of plans in these areas or in similar areas. You may want to develop your own list specific to your organization — a list that reflects the functions that HR does in your company.

Set of 20 Key responsibilities of HR Manager.

HR Manager is one of the most important key to open a lock hanging on the door of success in an organisation.If an HR Manager is efficient enough to handle and to take out best from his team members any oragnisation and can achieve more from his target goals. HR manager plays an very important role in hierarchy, and also in between the higher management and low level employees. Stated below are major responsibilities of HR Manager:-

Responsibilities:

1. To maintain and develop HR policies, ensuring compliance and to contribute the development of corporate HR policies.

2. To develop the HR team, to ensure the provision of a professional HR service to the organization.Manage a team of staff. Responsible for mentoring, guiding and developing them as a second line to the current position.

3. To ensure timely recruitment of required level / quality of Management staff, other business lines staff, including non-billable staff with appropriate global approvals, in order to meet business needs, focusing on Employee Retention and key Employee Identification initiatives.

4. Provide active support in the selection of Recruitment agencies which meet the corporate standard. Ensure Corporate Branding in recruitment webs and advertisements.

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5. Develop, refine and fine-tune effective methods or tools for selection / or provide external consultants to ensure the right people with the desired level of competence are brought into the organization or are promoted.

6. Prepare information and input for the salary budgets. Ensure compliance to the approved salary budget; give focus on pay for performance and salary benchmarks where available.Ensure adherence to corporate guideline on salary adjustments and promotions. Coordinate increments and promotions of all staff.

7. To develop the HR business plan.

8. Ensure appropriate communication at all staff levels.

9. To maintain and develop leading edge HR systems and processes to address the effective management of people in relation to the following in order to maintain competitive advantage for:

Performance Management.

Staff Induction.

Reward and Recognition.

Staff Retention.

Management Development / Career Development.

Succession Planning.

Competency Building / Mapping.

Compensation / Benefit programs.

10. To facilitate / support the development of the Team members

11. To facilitate development of staff with special focus on Line Management

12. To recommend and ensure implementation of Strategic directions for people development within the organization.

13. Ensure a motivational climate in the organization, including adequate opportunities for career growth and development.

14. Administer all employee benefit programs with conjunction with the Finance and Administration department.

15. Provide counsel and assistance to employees at all levels in accordance with the company's policies and procedures as well as relevant legislation.

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16. Oversee the central HR Administration -

employee offer letters

salary letters and employment contracts.

Approve updated organizational charts on a monthly basis and maintain

complete/accurate personnel records.

17. Co-ordinate the design, implementation and administration of human resource policies and activities to ensure the availability and effective utilization of human resources for meeting the company's objectives.

18. Responsible for Corporate HR function.

19. Responsible for overall centralized HR admin function

20. Counseling and Guidance cell - provide support to Managers in case of disciplinary issues.

Above 20 points are amongst the most important responsibilities which has to be taken care by an HR Manager. He cannot take any above stated responsibility for granted.

Duties/functions may include, but are not limited to, the following: • Manages and organizes multiple functional areas within Human Resources including providing technical direction to technical/professional and clerical staff within assigned areas.

• Consults with and advises administrators and employee representatives on personnel-related policies and procedures. • Interprets and communicates laws and regulations to ensure the agency is aware of its legal responsibilities; in conjunction with the Legal Department • Develops and implements personnel rules and regulations, and interprets and administers human resources-related provisions of collective bargaining agreements. • Analyzes processes and procedures in assigned functional areas including conducting research and statistical analyses, and makes recommendations for improvement. • Develops, implements, and administers, large and/or complex research studies or projects that may include the development and validation of selection instrumentation for a variety of classifications. • Establishes collaborative relationships with various functional and departmental areas of the District. • Trains and evaluates subordinates and prepares preliminary budget reports in assigned functional areas. • Represents Human Resources Department at a variety of meetings and advises the Human

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Resources Director in alternative courses of action in Human Resources issues. • Presents written and oral reports on a wide variety of human resources related issues. • May participate in labor negotiations and/or recommend preliminary proposals including cost implementation projections. • May be required to temporarily replace or act in the position of the senior District staff member to whom this position normally reports, and may be required to perform some or all of the senior staff member's essential functions in such situations.

Human Resource Management And Personnel Management

The concepts of Human Resource Management (HRM) and Personnel Management (PM) are considered to be synonymous and many human resource academics agree that the differences between these two management models are rather philosophical than practical. The term PM emerged in the middle of the 20th century though the development of this function of management takes source from so called “welfare offices” that appeared in the end of the 19th century. At that, the concept of HRM came out in the 1980s and was a product of the evolution of personnel management function in modern management.

The problem of identifying the differences between HRM and PM was a subject of interest and researches of many modern experts and professionals in organizational management, including Marco Koster, an Austrian specialist from University of Manchester, or Dr. P.C. Tipathy, an Indian specialist and the author of several books on organizational management. According to the findings of the latter (2002), the following differences between HRM and PM can be identified:

a) PM is a classical, traditional function of organizational management that is more oriented on administration and routine activities connected with personnel issues (including everything related to employment law, employee insurance, payroll, etc.), but HRM is more a developing, ongoing managerial function, which is oriented on improving human relation processes in organization and deals with such broad concepts as personnel planning and selection, career development, training, performance evaluation, and so on.

b) PM is mostly focused on routine tasks and personnel administration, therefore, its spectrum is relatively narrower than the one of HRM. The latter has more dynamic orientation and embraces much wider range of activities that are linked not only to administration, but also to personnel development and training, stimulating teamwork, looking for ways to motivate the employees for working with their maximal efficiency, improving organizational culture, and so on.

c) Taking into account the above, HRM can be considered more anticipative, dynamic and strategically developing part of organizational management, however, PM is more individualized and static function that is able to react on possible demands or response on possible problems in business organization when they arise.

d) PM and everything connected with PM is usually a responsibility of the related department in a business organization. In contrast to this, HRM must be considered as a concern of the whole organization, because HRM is a macro function oriented on managers of all levels and

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aimed on improving their skills of dealing with the employees of all levels of authority and qualification.

e) With its more classical approach to the issues of personnel motivation, PM considers such factors as various rewards and compensation for work, work simplification, etc. to be the most powerful motivators for the employees. At the same time, HRM sees a great potential in motivating the personnel with such concepts as working in teams, creativity, setting up interesting and challenging objectives, and so on.

f) Finally, PM must be considered as an independent function of organizational management, with it own structure and sub-functions. However, HRM is an integrated part of organizational management that does not tend to be independent as it uses systems thinking approach and is strongly interconnected with all elements of organizational structure.

Therefore, the differences between HRM and PM are quite minor and mostly focused around the nature of functions and the scope of these both types of management, as well as around their orientation and approaches to the issue of motivation. At the same time, some specialists underline that in terms of modern dynamic business environment, the distinctions between PM and HRM tend to become more considerable.

Distinguishing factors - HRM and Personnel Management

Key AspectPersonnel management

HRM

Beliefs and assumptions

ContractCareful delineation of written contract

Aim to go beyond written contract – go by the spirit of the contract

RulesThrust on devising clear rules

“can do” attitude – impatience with rules

Guide to management action

ProceduresBusiness and customer needs, flexibility, commitment

BehavioursIn line with customs and norms

In line with values and mission

Managers’ task Monitoring NurturingStrategic aspects

Key relationsLabour management

Customers

Initiatives Piecemeal IntegratedCorporate plan Marginalized CentralSpeed of decisions Slow FastLine managementManagement role Transactional Transformational leadershipKey managers P&IR experts Line managersSkills Negotiation Facilitation

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Key levers

AttentionPersonnel procedures

Cultural and structural issues and personnel strategies

SelectionMarginal importance

Integrated and key task

Pay Job evaluation Performance based

CommunicationRestricted flow / indirect

Increased flow / direct

Job design Division of labour Team work

Conflict handling Temporary basisManaging culture and climate

Training & development

Controlled access to courses

Learning organizations

Module 2

What is "job design"?

Job design refers to the way that a set of tasks, or an entire job, is organized. Job design helps to determine:

• what tasks are done,• how the tasks are done,• how many tasks are done, and• in what order the tasks are done.

It takes into account all factors which affect the work, and organizes the content and tasks so that the whole job is less likely to be a risk to the employee. Job design involves administrative areas such as:

• job rotation,• job enlargement,• task/machine pacing,• work breaks, and• working hours.

A well designed job will encourage a variety of 'good' body positions, have reasonable strength requirements, require a reasonable amount of mental activity, and help foster feelings of achievement and self-esteem.

How can job design help with the organization of work?

Job design principles can address problems such as:

• work overload,

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• work underload,• repetitiveness,• limited control over work,• isolation,• shiftwork,• delays in filling vacant positions,• excessive working hours, and• limited understanding of the whole job process.

Process JOB DESIGN: -

1. Works Simplifications

In work simplification, the complete job is broken down into small sub ports, usually consisting of few operations. This is done so that employees can do these jobs without much specialised training. Many small jobs can also be performed simultaneously so that the complete operation can be done more quickly. Time and motion studies are often used for work simplification.

2. Job Rotation

Job Rotation refers to the practice of shifting people from one job to another within a work group so that there is some varieties and relief from the boredom of routine. Herzberge characterised this approach age merely substituting “one zero for another zero” as it implies horizontal or lateral transfer to job of the same level and status.

Job Rotation means lateral transfer. Horizontal rotation may take place in course of a development programme whereby the employee spends two or three months in one activity and is then moved on to another. Job rotation may also be on a situational basis i.e. by moving the person to another activity when the first is no longer challenging to him, or to meet the needs of work scheduling.

3. Job Enlargement

Job enlargement means assignment of varied tasks or duties of the jobs of employees all the same level. The additional tasks or duties do not require new skills but can eperforme3d with similar skills and efforts as before. In this case, there is enlargement in the horizontal dimension and it may be the monotonous job remains monotonous only on a larger scale than before. Herzberg, a pioneer in job design, has characterised job enlargement has simply “adding zero to zero” meaning that one set of boring tasks (zero) is simply added to another set of boring tasks (zero).

4. Job Enrichment

Job Enrichment implies increasing the contents of a job or the deliberate upgrading of responsibility, scope and challenge in work. Job enrichment is a

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motivational technique which emphasises the needs for challenging and interesting work. It leads to a vertically enhanced job by adding functions from other organizational levels, making it contain more variety and challenge and offer autonomy and pride to the job holder.

Process of job analysis :-

There are eight major steps in a job analysis programme :-1. Organise and plan for the programme. The company must determine who will be incharge of the programme and must assign responsibilities to the designated persons. A schedule should be established and a budget estimated for carrying out analysis of jobs.2. Obtain current job design information. The job analyst should next obtain organization charts, current position descriptions and job specifications, procedure manuals, and systems flow charts as are available.3. Conduct “needs research”. The job analyst should investigate to determine which organization, managers, or staff people required job analysis or output from job analysis. The analyst should also determine for what purpose and to what extent jobs must be analysed and how the information will be used.4. Establish priorities in the jobs to be analysed. The personnel department, working with managers of the various organizational units should indentify the jobs to be analysed and the priority of each job analysis.5. Collect job data, collect data about the selected jobs as they are currently being performed using established systematic techniques.6. Redesign the jobs, if necessary.7. Prepare job descriptions and job classification. Job information collect must be processed to prepare the job descriptions. This is a written statement which describes the main features of the job along with duties, location and degree of risk involved.

8. Developing job specifications. This step involves conversion of the job descriptions in terms of human qualifications, traits of temperament, physical and psychological attributes required for successful performance of the job.

Job Redesign - Meaning, Process and its Advantages

Restructuring the elements including tasks, duties and responsibilities of a specific job in order to make it more encouraging and inspiring for the employees or workers is known as job redesigning. The process includes revising, analyzing, altering, reforming and reshuffling the job-related content and dimensions to increase the variety of assignments and functions to motivate employees and make them feel as an important asset of the organization. The main objective of conducting job redesigning

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is to place the right person at the right job and get the maximum output while increasing their level of satisfaction.

Job Redesign Process

Revising the Job Content: Job redesigning process involves recollecting and revising job-related information to determine the inconsistency between person and the job.

Analyzing Job-related Information: Once the job analyst is through with recollecting and revising the job content, analyzing the discrepancies is the next step. It is done to determine the hindrances in performing job-related tasks and duties and investigate why an employee is not able to deliver the expected output.

Altering the Job Elements: The next step is to amend the job elements. It may include cut back on extra responsibilities or addition of more functions and a higher degree of accountability. The basic aim of altering the job content is to design a job in such a manner that encourages employees to work harder and perform better.

Reformation of Job Description and Specification: After altering the job elements, a job analyst needs to reform the job description and specification in order to make sure that the worker placed at a particular place is able to deliver what is expected of him.

Reshuffling the Job-related Tasks and Duties: Next is to reallocation of new or altered tasks and functions to employees. It may be done by rotating, enriching, enlarging and engineering the job. The idea is to motivate the performers while increasing their satisfaction level.

Advantages of Job Redesigning

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Enhances the Quality of Work-Life: Job redesigning motivates the employees and enhances the quality of their work life. It increases their on-the-job productivity and encourages them to perform better.

Increases Organization’s and Employees’ Productivity: Altering their job functions and duties makes employees much comfortable and adds to their satisfaction level. The unambiguous job responsibilities and tasks motivate them to work harder and give their best output. Not only this, it also results in increased productivity of an organization.

Brings the Sense of Belongingness in Employees: Redesigning job and allowing employees to do what they are good at creates a sense of belongingness in them towards the organization. It is an effective strategy to retain the talent in the organization and encouraging them to carry out their responsibilities in a better fashion.

Creates a Right Person-Job Fit: Job Redesigning plays an important role in creating a right person-job fit while harnessing the full potential of employees. It helps organization as well as employees in achieving their targets or goals.

Therefore, the purpose of job redesigning is to identify the task significance and skill variety available in the organization and reallocating the job-related tasks and responsibilities according to the specific skills possessed by an employee.

RECRUITMENT

recruitment is the process of attracting qualified applicants for a specific job. the process begins when applications are brought in and ends when the same is finished. the result is a pool of applicants, from where the appropriate candidate can be selected.

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.

The recruitment industry has four main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, and niche agencies which specialize in a particular area of staffing. Some organizations use

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employer branding strategy and in-house recruitment instead of agencies. Recruitment-related functions are generally carried out by an organization's human resource staff.

The stages in recruitment include sourcing candidates by advertising or other methods, screening potential candidates using tests and/or interviews, selecting candidates based on the results of the tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role effectively.

People management - Recruitment (introduction)

Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job. Retention means ensuring that once the best person has been recruited, they stay with the business and are not “poached” by rival companies.

Undertaking this process is one of the main objectives of management. Indeed, the success of any business depends to a large extent on the quality of its staff. Recruiting employees with the correct skills can add value to a business and recruiting workers at a wage or salary that the business can afford, will reduce costs.

Employees should therefore be carefully selected, managed and retained, just like any other resource

Recruitment methods

The methods of recruitment open to a business are often categorised into:

Internal recruitment is when the business looks to fill the vacancy from within its existing workforce.

External recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business.

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Advantages Disadvantages

Internal Recruitment

Cheaper and quicker to recruit

Limits the number of potential applicants

People already familiar with the business and how it operates

No new ideas can be introduced from outside the business

Provides opportunities for promotion with in the business – can be motivating

May cause resentment amongst candidates not appointed

Business already knows the strengths and weaknesses of candidates

Creates another vacancy which needs to be filled

External Recruitment

Outside people bring in new ideas

Longer process

Larger pool of workers from which to find the best candidate

More expensive process due to

advertisements and interviews required

People have a wider range of experience

Selection process may not be effective enough to reveal the best candidate

The four most popular ways of recruiting externally are:

Job centres - These are paid for by the government and are responsible for helping the unemployed find jobs or get training. They also provide a service for businesses needing to advertise a vacancy and are generally free to use.

Job advertisements - Advertisements are the most common form of external recruitment. They can be found in many places (local and national newspapers, notice boards, recruitment fairs) and should include some important information relating to the job (job title, pay package, location, job description, how to apply-either by CV or application form). Where a business chooses to advertise will depend on the cost of advertising and the coverage needed (i.e. how far away people will consider applying for the job

Recruitment agency - Provides employers with details of suitable candidates for a vacancy and can sometimes be referred to as ‘head-hunters’. They work for a fee and often specialise in particular employment areas e.g. nursing, financial services, teacher recruitment

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Personal recommendation - Often referred to as ‘word of mouth’ and can be a recommendation from a colleague at work. A full assessment of the candidate is still needed however but potentially it saves on advertising cost.

Recruitment interviews

An interview is the most common form of selection and it serves a very useful purpose for both employer and job candidate. The main benefits of an interview include:For the Employer:

• Information that cannot be obtained on paper from a CV or application form• Conversational ability - often known as people skills• Natural enthusiasm or manner of applicant• See how applicant reacts under pressure• Queries or extra details missing from CV or application form

For the Candidate

• Whether job or business is right for them• What the culture of company is like • Exact details of job

There are though other forms of selection tests that can be used in addition to an interview to help select the best applicant. The basic interview can be unreliable as applicants can perform well at interview but not have the qualities or skills needed for the job.

Other selection tests can increase the chances of choosing the best applicant and so minimise the high costs of recruiting the wrong people. Examples of these tests are aptitude tests, intelligence tests and psychometric tests (to reveal the personality of a candidate).

Once the best candidate has been selected and agreed to take up the post, the new employee must be given an employment contract. This is an important legal document that describes the obligations of the employee and employer to each other (terms and conditions) as well as the initial remuneration package and a number of other important details.

Job applications

For many jobs, a business will ask applicants to provide a Curriculum Vitae (CV). This is a document that the applicant designs providing the details such as:

Personal details Name, address, date of birth, nationality

Educational history Including examination results, schools/universities attended, professional qualifications

Previous employment history

Names of employers, position held, main achievements, remuneration package, reasons for leaving

Suitability and reasons for applying for the job

A chance for applicants to ‘sell themselves’

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Names of referees Often recent employer or people who know applicant well and are ideally independent

Sometimes job applicants are asked to fill in a firm’s own application form. This is different from a CV in that the employer designs it and sends it to applicants, but it will still ask for much of the same information. It has the benefit over a CV in that a business is able to tailor it to their exact needs and ask specific questions.

Once a business has received all the applications, they need to be analysed and the most appropriate form of selection decided upon. When analysing applications, a business will normally split the applications into three categories.

Those to reject Candidates may be rejected because they may not meet the standards set out in the job specification such as wrong qualifications or insufficient experience or they may not have completed the application form to a satisfactory standard

Those to place on a short list

Often comprises 3-10 of the best candidates who are asked to interview

Those to place on a long list

A business will not normally reject all other candidates immediately but keep some on a long list in case those on the short list drop out or do not appear suitable during interview. The business would not want to incur costs putting them through the selection process, such as interviews, unless they have to

Recruitment planning

There are a number of possible reasons as to why a business may have to recruit more employees:

• Business is expanding due to:• - Increasing sales of existing products• - Developing new products• - Entering new markets• Existing employees leaving to work with competitors or other local employers• Existing employees leaving due to factors such as retirement, sick leave, maternity

leave• Business needs employees with new skills• Business is relocating – and not all the existing workforce wants to move to the new

location

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In each of these circumstances a business will normally carry out Workforce Planning to find out how many workers and what types of workers are required. The workforce plan will establish what vacancies exist and managers then need to draw up ajob description and job specification for each post.

A job description is a detailed explanation of the roles and responsibilities of the post advertised. Most applicants will ask for this before applying for the job. It refers to the post available rather than the person.

A job specification is drawn up by the business and sets out the kind of qualifications, skills, experience and personal attributes a successful candidate should possess. It is a vital tool in assessing the suitability of job applicants and refers to the person rather than the post.

These documents are an important part of the recruitment and selection process and provide the basis as to where the job may be advertised and whether an applicant is suitable for the post. They also help provide a framework for questions to be asked at an interview.

Recruitment Process

Job analysisThe proper start to a recruitment effort is to perform a job analysis, to document the actual or intended requirement of the job to be performed. This information is captured in a job description and provides the recruitment effort with the boundaries and objectives of the search.[4] Oftentimes a company will have job descriptions that represent a historical collection of tasks performed in the past. These job descriptions need to be reviewed or updated prior to a recruitment effort to reflect present day requirements. Starting a recruitment with an accurate job analysis and job description ensures the recruitment effort starts off on a proper track for success.

SourcingSourcing involves 1) advertising, a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs; and 2) recruiting research, which is the proactive identification of relevant talent who may not respond to job postings and other recruitment advertising methods done in #1. This initial research for so-called passive prospects, also called name-generation, results in a list of prospects who can then be contacted to solicit interest, obtain a resume/CV, and be screened (see below).

Screening and selection

Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and computer skills. Qualifications may be shown through résumés, job applications, interviews, educational or professional experience, the testimony of references, or in-house testing, such as for software knowledge, typing skills, numeracy, and literacy, through psychological tests or employment testing. Other resume screening criteria may include

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length of service, job titles and length of time at a job. In some countries, employers are legally mandated to provide equal opportunity in hiring. Business management software is used by many recruitment agencies to automate the testing process. Many recruiters and agencies are using an applicant tracking system to perform many of the filtering tasks, along with software tools for psychometric testing.

Onboarding"Onboarding" is a term which describes the process of helping new employees become productive members of an organization. A well-planned introduction helps new employees become fully operational quickly and is often integrated with a new company and environment. Onboarding is included in the recruitment process for retention purposes. Many companies have onboarding campaigns in hopes to retain top talent that is new to the company; campaigns may last anywhere from 1 week to 6 months.

Internet recruitment and websites

Such sites have two main features: job boards and a résumé/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies. Alternatively, candidates can upload a résumé to be included in searches by member companies. Fees are charged for job postings and access to search resumes. Since the late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites capture candidate details and then pool them in client accessed candidate management interfaces (also online). Key players in this sector provide e-recruitment software and services to organizations of all sizes and within numerous industry sectors, who want to e-enable entirely or partly their recruitment process in order to improve business performance.

The online software provided by those who specialize in online recruitment helps organizations attract, test, recruit, employ and retain quality staff with a minimal amount of administration. Online recruitment websites can be very helpful to find candidates that are very actively looking for work and post their resumes online, but they will not attract the "passive" candidates who might respond favorably to an opportunity that is presented to them through other means. Also, some candidates who are actively looking to change jobs are hesitant to put their resumes on the job boards, for fear that their companies, co-workers, customers or others might see their resumes.

Job search enginesThe emergence of meta-search engines allows job-seekers to search across multiple websites. Some of these new search engines index and list the advertisements of traditional job boards. These sites tend to aim for providing a "one-stop shop" for job-seekers. However, there are many other job search engines which index solely from employers' websites, choosing to bypass traditional job boards entirely. These vertical search engines allow job-seekers to find new positions that may not be advertised on traditional job boards, and online recruitment websites.

Purpose & Importance Of Recruitment

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Attract and encourage more and more candidates to apply in the organisation.

Create a talent pool of candidates to enable the selection of best candidates for the organisation.

Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.

Recruitment is the process which links the employers with the employees.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.

Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.

Meet the organizations legal and social obligations regarding the composition of its workforce.

Begin identifying and preparing potential job applicants who will be appropriate candidates.

Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants

Selection is the process of identifying Individuals who have relevant qualifications/ experience/ skills and competencies to fill in the jobs. Once there is a pool of applicants for a job, the next step is to select the best candidate for the job. Selecting the right employees is critical because:• The Organisations performance is dependent on its employees. Employees With the right skills and attributes will do a good job• It Is costly to recruit and hire employees. Hiring And training a new employee costs a lot of money.• Incompetent Hiring could impact the organisation in a big way. The Employee may commit a wrongful act that will impact the image of the organisation adversely.

Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also save time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested.

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But selection must be differentiated from recruitment, though these are two phases of employment process. Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job.

The Employee selection Process takes place in following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblity criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.

2. Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc.

3. Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased.

4. Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in room. There should be an honest communication between candidate and interviewer.

5. Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism.

6. Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.

Barriers to effective selection:

The main objective of selection is to hire people having competence and commitment. This objective is often defeated because of certain barriers. The impediments which check effectiveness of selection are perception, fairness, validity, reliability, and pressure.

PERCEPTION: Our inability to understand others accurately is probably the most fundamental barrier to selecting right candidate. Selection demands an individual or a group to assess and compare the respective competencies of others, with the aim of choosing the right persons for the jobs. But our views are highly personalized. We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people.

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FAIRNESS: Fairness in selection requires that no individual should be discriminated against on the basis of religion, region, race or gender. But the low number of women and other less privileged sections of society in the middle and senior management positions and open discrimination on the basis of age in job advertisements and in the selection process would suggest that all the efforts to minimize inequity have not been very effective.

VALIDITY: Validity, as explained earlier, is a test that helps predict job performance of an incumbent. A test that has been validated can differentiate between the employees who can perform well and those who will not. However, a validated test does not predict job success accurately. It can only increase possibility of success.

RELIABILITY: A reliable method is one which will produce consistent results when repeated in similar situations. Like a validated test, a reliable test may fall to predict job performance with precision.

PRESSURE: Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends, and peers to select particular candidate. Candidates selected because of compulsions are obviously not the right ones. Appointments to public sector undertakings generally take place under such pressure.

Barriers to Effective Selection of Employees

Recruitment and the selection of the right candidate is the main function of the human resource department in the organization. Main objective of the recruitment process is to hire the candidates having competence and commitment. There are certain barriers which effects this objective and they are as follows:

Fairness:

In the process of recruitment no candidate should be discriminated against on the basis of religion, region, race or gender. This can be seen in the job advertisement which says that women, less privileged sections of society, open discrimination on the basis of age are not performed during the selection process. By showing discrimination the company can loose a potential employee.

Perception:

Inability of the employers to understand others accurately is probably the most fundamental barrier to selecting right candidate. In the recruitment process the employers should assess

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and compare the competencies of the individual or groups with the aim of choosing the right persons for the jobs. Limited perceptual ability of the employers is obviously a stumbling block to the objective and rational selection of people.

Validity:

Validity is a test that helps to predict the job performance of a fresher and it is the test to differentiate the employees who can perform from the employees who can’t. However, a validated test increase the possibility of success but does not predict job success accurately.

Pressure:

Pressure on the recruiters can also act as an effective barrier for selecting the right candidate and this pressure can be bought on to the recruiters by politicians, bureaucrats, relatives, friends, and peers etc. Generally recruitment in the public sector undertakings take place under such pressure.

Reliability: A reliable method is one which will produce consistent results when repeated in similar situations and this reliable test may be used to predict the job performance precisely.

Only when all the above said barriers are crossed, one can expect a good candidate to get selected for the company.

Module 3

Training is about knowing where you stand (no matter how good or bad the current situation looks) at present, and where you will be after some point of time.

Training is about the acquisition of knowledge, skills, and abilities

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(KSA) through professional development.

ROLE OF TRAINING

• Optimum Utilization of Human Resources – Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals.

• Development of Human Resources – Training and Development helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.

• Development of skills of employees – Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees.

Productivity – Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.

Team spirit – Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees.

Organization Culture – Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization.

Organization Climate – Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers.

Quality – Training and Development helps in improving upon the quality of work and work-life.

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Healthy work environment – Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.

Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.

Morale – Training and Development helps in improving the morale of the work force.

Image – Training and Development helps in creating a better corporate image.

Profitability – Training and Development leads to improved profitability and more positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organisational policies

Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

Importance of Training

Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well.

Training is given on four basic grounds:

1. New candidates who join an organization are given training. This training familiarize them with the organizational mission, vision, rules and regulations and the working conditions.

2. The existing employees are trained to refresh and enhance their knowledge.

3. If any updations and amendments take place in technology, training is given to cope up with those changes. For instance, purchasing a new equipment, changes in technique of production, computer implantment. The employees are trained about use of new equipments and work methods.

4. When promotion and career growth becomes important. Training is given so that employees are prepared to share the responsibilities of the higher level job.

The benefits of training can be summed up as:

1. Improves morale of employees- Training helps the employee to get job security and job satisfaction. The more satisfied the employee is and the greater is his morale, the more he will contribute to organizational success and the lesser will be employee absenteeism and turnover.

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2. Less supervision- A well trained employee will be well acquainted with the job and will need less of supervision. Thus, there will be less wastage of time and efforts.

3. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills required for doing a particular job. The more trained an employee is, the less are the chances of committing accidents in job and the more proficient the employee becomes.

4. Chances of promotion- Employees acquire skills and efficiency during training. They become more eligible for promotion. They become an asset for the organization.

5. Increased productivity- Training improves efficiency and productivity of employees. Well trained employees show both quantity and quality performance. There is less wastage of time, money and resources if employees are properly trained.

Ways/Methods of Training

Training is generally imparted in two ways:

1. On the job training- On the job training methods are those which are given to the employees within the everyday working of a concern. It is a simple and cost-effective training method. The inproficient as well as semi- proficient employees can be well trained by using such training method. The employees are trained in actual working scenario. The motto of such training is “learning by doing.” Instances of such on-job training methods are job-rotation, coaching, temporary promotions, etc.

2. Off the job training- Off the job training methods are those in which training is provided away from the actual working condition. It is generally used in case of new employees. Instances of off the job training methods are workshops, seminars, conferences, etc. Such method is costly and is effective if and only if large number of employees have to be trained within a short time period. Off the job training is also called as vestibule training,i.e., the employees are trained in a separate area( may be a hall, entrance, reception area,etc. known as a vestibule) where the actual working conditions are duplicated.

Types & methods of training at work

Induction training

Induction training is important as it enables a new recruit to become productive as quickly as possible. It can avoid costly mistakes by recruits not knowing the procedures or techniques of their new jobs. The length of induction training will vary from job to job and will depend on the complexity of the job, the size of the business and the level or position of the job within the business.

The following areas may be included in induction training:

• Learning about the duties of the job• Meeting new colleagues• Seeing the layout of the premises• Learning the values and aims of the business

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• Learning about the internal workings and policies of the business

On-the-job training

With on the job training, employees receive training whilst remaining in the workplace.The main methods of one-the-job training include:

• Demonstration / instruction - showing the trainee how to do the job• Coaching - a more intensive method of training that involves a close

working relationship between an experienced employee and the trainee• Job rotation - where the trainee is given several jobs in succession, to

gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments)

• Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multi-disciplinary"

The advantages and disadvantages of this form of training can be summarised as follows:

Advantages Disadvantages

Generally most cost-effectiveEmployees are actually productiveOpportunity to learn whilst doingTraining alongside real colleagues

Quality depends on ability of trainer and time availableBad habits might be passed onLearning environment may not be conducivePotential disruption to production

Off-the-job training

This occurs when employees are taken away from their place of work to be trained.

Common methods of off-the-job training include:

• Day release (employee takes time off work to attend a local college or training centre)

• Distance learning / evening classes• Block release courses - which may involve several weeks at a local college• Sandwich courses - where the employee spends a longer period of time at

college (e.g. six months) before returning to work• Sponsored courses in higher education• Self-study, computer-based training

The main advantages and disadvantages of this form of training can be summarised as follows:

Advantages Disadvantages

A wider range of skills or qualifications can be obtained

More expensive – e.g. transport and accommodation

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Can learn from outside specialists or experts Employees can be more confident when starting job

Lost working time and potential output from employee New employees may still need some induction training Employees now have new skills/qualifications and may leave for better jobs

Training’s link to motivation

An important part of managing people is to let them know how they are performing. Various methods of performance appraisal can be used and an important output from this process should be an assessment of an employee’s training needs. Training programmes should be focused on meeting those needs.

Assuming training is effective: then:

• Employees feel more loyal to the business• Shows that business is taking an interest in its workers• Employees should benefit from better promotion opportunities• Employees to achieve more at work – and perhaps gaining financially from

this (depending on the remuneration structure)

TRAINING METHODS :-All training methods can be grouped into two categories :- a] Training methods for operatives and b] Training methods for managers a] Training Methods for Operatives :-Under these methods the new employee is assigned to a specific job at a machine or workshop or laboratory. He is instructed by an experienced employee or by a special supervisor who explains to him the method of handling tools, operating the machines etc. Vestibule Training :- This method involves the creation of a separate training centre within the plant itself for the purpose of providing training to the new employees. An experienced instructor is put in-charge of this training. Machines and tools are also managed in the training centre, so as to create working conditions similar to those in the workshop. Advantage :- No interference with regular production. Disadvantage - Costly, adds nothing to productions during training period. Apprenticeship Training :-This method of training is meant to give the trainee sufficient knowledge and skill in those trades and crafts in which a long period of training is required for gaining complete proficiency. Generally, the trainees work as apprentices under the direct supervision of experts for long periods of say, two to seven years. This programme consists of providing actual work experience in the actual job as well as imparting theoretical knowledge through class room lectures which may be arranged either in the plant or in the institution attached to the concern. This method of training enables the trainees to become all-round craftsmen. But this method is very expensive and also there is no guarantee that a trained worker will continue to

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work in the same concern after the training is completed. Internship Training :- This method of training is generally provided to the skilled and technical personnel. The object of this type of training is to bring about a balance between theoretical and practical knowledge, under this method, students from a technical institution possessing only theoretical knowledge are sent to some business enterprise to gain practical work experience. Simultaneously, the employees of business enterprises are sent to technical institutions to gain the latest theoretical knowledge on a subject. Ex. B.E. (Prod.) - 6 months in plant training B.E. (Mech.)- 2 days in a week during final year b] Training Methods for Managers :-Executive talent is the most important asset which a company can posses. Although, it does not appear on the company's balance sheet, but it produces more important effects on the company's progress, its profit and the price of its stock than any other asset in its possession. The following are the various training methods for managers.1] Observation Assignment :-Under this method, the newly recruited executive called "understudy" is made an assistant to the current job holder. He learns by experience, observation and imitation. If decisions are discussed with him, he is informed on the policies and theories involved. 2] Position Rotation :-Under this method, the trainee executive is rotated among different managerial jobs. This not only broaden and enriches his experience as a manager but also enables him to understand inter departmental relations and the need for co-ordination and co-operation among various departments. 3] Serving on Committees :-Another important method of training on an executive is to make him serve on a committee. While serving on a committee, the executive comes to learn not only the various organizational problems, views of senior and experienced members, but also learns how a manger should adjust himself to the overall needs of the enterprise. 4] Assignment of special Projects :-Sometimes, as a method of training some special project is assigned to a trainee executive. for example, he may be ask to develop a system of cost allocation in the production of certain goods for which an order has been received by the company. While working on such project, the trainee not only acquires knowledge about them, but also learns how to work with and relate to other people holding different views. 5] Conference and Seminars :-Often an executive is deputed to attend a conference, seminar or workshop to receive a quick orientation in various areas of Management with which he might be unfamiliar. One advantage of this type of training is that all the participants coming from different organizations get an opportunity to pool their ideas and experience in attempting to solve mutual problems. The attitude is one of joint exploration. This encourages cross fertilization of ideas. 6] Case Study :-A case is a written account seeking to describe an actual situation. A good case is the vehicle by which a chunk of realty is brought into the class room to be discussed over by the class

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and the instructor. Discussion on a case requires a capable instructor, who can evoke and guide intelligent discussion analysis, so that meaningful learning experiences occur. There is no "right" answer or simple explanation in the comprehensive case. The advantages of this method are more depth of thinking, more perception in a situation, greater respect for and consideration for the opinion of others. 7] Incident Method :-This method was developed at M.I.T. by Paul and Pigors, as an outgrowth of dissatisfaction felt with the case method. In the usual case method the entire problem is presented to the students, whereas in the incident method only a brief incident is presented to provoke discussion in the class. The group then puts questions to the instructor to draw out of him the salient facts and additional information, needed to arrive at a reasonable solution or resolution of the case. This method draws the participants into discussion with greater emotional involvement. A unique advantage of this method over the case method is the procedure of obtaining information by questions, one that often must take place in actual business situations. 8] Role Playing :-In this method, the instructor assigns parts taken from case materials to group members. The situation is usually one involving conflict between people. The role players attempt to act the parts as they would behave in a real life situation, working without a script or memorized lines and improvising as they play the parts. The development of empathy and sensitivity is one of the primary objectives of role playing. 9] Laboratory Training (or Sensitivity Training) (T group Training):This type of training is designed to increase the managers understanding of himself and of his own impact on others. The training takes the form of a group discussion, and through a leader trained in the technique is present, the group may decide on the subject of discussion or suggest changes in procedure. In the course of discussion, conflict, hostility, stress and frustration may be purposely generated for they later on become motivations for growth as well as food for learning. The laboratory training aims at achieving behavioural, effectiveness in transactions with ones environment,

Benefits· Staff become more competent at their jobs· Staff become moer flexible· Staff motivation increases· Increased productivity· Changes become easier to introduce· Fewer accidents· The organisation’s image improves eg when dealing with customers· Reduced waste

Costs· Once fully trained, staff may leave for better paid jobs· Financial cost of training may be high· Work time is lost when staff are being trainedQuality of training must be high for it to have a positive effect

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Meaning of Executive Development

The executive development is a planned, systematic and continuous process of learning and growth designed to induce behavioural change in individuals by cultivating their mental abilities and inherent qualities through the acquisition, understanding and use of new knowledge, insights and skills as they are needed for more effective performance of the work of managing.

Managers develop not only by participating in formal courses of instruction drawn by the organisation but also through actual job experience in the organisation. It should be recognised that it is for the organist ion to establish the development opportunities for its managers and potential managers. But, an equal rather more important counterpart to the efforts of organisation are those of the individuals. It should be accepted as discipline of self education. Te individuals mus have the motivation and the capacity to learn and develop. As the individuals differ from one another in aptitudes, attitudes, talents, aspiration, needs and motivation, they should by provided an effective organisational climate to develop themselves and change their behaviour in manging the people and resources.

Method of Executive Development A great variety of management development techniques are used by different organisations to develop their executive manpower.

The selection of techniques rests on on philosophy of development. There are two principal methods of executive development which are generally used by the firms. One is on-the-job development and the other is off-the job development. We shall discuss here under the various one-the-job and off-the-job executive development technologic

There are two various method

1. On-the-job Method2. Off-The-Job-Methods

Off-The-Job-Methods of method of executive development The main techniques under this method are

(a) Special Courses. The method of special courses requires the trainee to leave the work place and to devote is entire time to developmental objectives. The prime object of such special courses is to provide an opportunity to te trainee to acquire knowledge with full devotion. Development is primary and work is secondary. These courses may be conducted in a number of ways-Firstly, the organisation establishes such courses to be taught to the trains by the members of the firm or by the regular instructor appointed by the firm or by the regular instructor appointed by the firm or by the specialists (professors and lecturers_ from other outside institutions. The second approach to this technique is to send the personnel to programmes established by the colleges or universities. The organisation sponsors some of its members to the courses and bears the expenses. The third approach to the technique is to work with a college or other institutions in establishing a course or a series of courses to be

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taught by faculty members. A big organisation may starts its own training school.

(b) Role Playing. Under this method, two or more trainees are assigned different roles to play by creating an a rtificial conflict situation. No dialogged is given before hand. The role players are provided with he written or oral description of the situation and the role to play. Sufficient time is given to the role players to plan tier actions and they must act their parts before the class. For instance role playing situation may be a supervisor discussing grievances with is subordinate.

(c) Case Study. Case study technique is extensively used in teaching law, business management, human relation, etc., to let the trainee understand that there mat be different solutions to a particular problem. Under this method, the trainees are given a realistic problem to discuss, which is more or less related to the principles already taught. This method provides an opportunity to the trainee to apply his skill to the solution of realistic problems. Cases may be used in either of the two ways:- (i) They can be used after exposing the formal theory under which the trainee applies their skill to specific situation, or (ii) They may be assigned to the trainees for written analysis or oral discussion without any prior discussion of the theory.

(d) Conference. A conference is a group meeting conducted according to an organised plan is which members participate in oral discussion of a particular problem and thus develop their knowledge and understanding. It is an effective training device for conferences members and conference leaders. Both learns a lot from others view point and compare his opinions with others. The conference leaders may also learn how to develop his skill to motivate people through his direction of discussion. Conferences may of three types:- (i) The directed or guided conference, (ii) Consultative conference, and (ii) Problem solving conference. However guided conference is generally used for training purposes.

(e) Multiple Management. Under this system, a permanent advisory board or committee of executives study the problems of organisation and make recommendations to the higher management for final decision. There is another device, constituting a junior board of directors in a company for training the executives. The board is given power to discuss any problem which the senior board of directors (constituted by shareholders) could discuss. The utility of junior board is only to train the junior executives. Thus junior board discuss wide variety of subjects which a senior board can discuss or in other way, it is an advisory body.

(f) Managements Games. It is a classroom exercise, in which teams of students compete against each other to achieve common objective. The game is designed to be a close representations of real life conditions. The trainees are asked to make decisions about production, cost, research and development, etc., for an organisation. Since they are often divided into teams as competing companies, experience is obtained in team work. Under tis method, the trainees learn by analyzing problems by using some intention and by making trial and error type of decisions. Any wrong is corrected by the trainer or sometimes a second chance is given to to something all other again.

(g) Syndicate Method. Under this method, 5 or 6 groups consisting of about 10 members are formed. Each group (Syndicate) is composed of carefully selected men who, on the one and, represents fair cross section of the executive life of t country, i.e. men from public sector and private sector undertakings, civil and defense services, banking, insurance, etc., and on the other hand, a good well balance team of management from different fields, i.e., production,

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marketing, personnel, finance, etc. The groups are given assignments, made up before hand to be submitted within a specified date and time. Each man in t group is appointed leader of the group for the performance of the given task by rotation and so for the secretary for the subdivision of the course. Each task is assigned in the form of a 'Brief', a document prepared by the experts on the faculty with meticulous care. It also fixes the time by which the study is to be completed. Lecturers by experts are also arranged to supplement the study. The report prepared an submitted by a group is circulated among the members of the other groups for comparative study and critical evaluation. The leader or chairman of the group is required to present the views of his group in the joint session and justify his group's view in case of criticism or questions.

(h) Sensitivity Training Or T-Group. In sensitivity training, the executives spends about two work-hours attending t lectures on the subject such as leadership and communication. The members, under this method, sit around a table and discuss. The trainer, usually a psychologist, neither leads the discussion nor suggests what should be discussed but only guides the discussion. The members freely discuss and criticize the behaviour of each other thereby giving a feed back positive or negative.

(i) Programmed Instruction. Programmed instruction as gained a lot of importance both in training and in industry in modern times it includes teaching machines, auto instruction, automatic instruction and programmed learning. It is an application of science of learning to the task of training and education. The core feature of programmed instruction is the participation by the trainee and immediate fed back by him. Programmed instruction machines include films, tapes, programmed books, illustrations, printed material, diagrams, etc. it performs two functions:- (i) provides information to the learner, and (ii) provides feed back whether the response is correct or wrong.

(j) Selective Readings. Many executives find it very difficult to do much reading other than that absolutely required in the performance of their jobs. Some organizations provide some time for reading which will advance the general knowledge and background of the individuals. Many organisations purchase some high level journals like the Commerce, the Capitalist, the Management in Govt., etc,. And dailies like the Economic Times, the Financial Express, etc.

On-the-job Method of method of executive development It is most popular method of developing the executive talent. The main techniques are

(a) Coaching. Under this technique, the superior coaches the job knowledge and skill, to his subordinates. He briefs the trainees what is expected of them and guides how to get it. He also watches their performance and directs them to correct the mistakes. The main objective of this training is to provide them diversified knowledge. Coaching is recognised as one of t managerial responsibilities, and the manger as an obligation to train an develop the subordinates working under him. He delegates his authority to the subordinates to prepare them to handle the complex situations.

(b) Understudy. This system is quite different from the system discussed above. Under this system, a person is specifically designated as the their apparent who is called the understudy.

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The understudy's future depends on what happens to his superior leaves his post due to promotion, retirement or transfer. Te department manger picks up one individual from the department to become his understudy. He guides him to learn his job and tackle the problems tat confront the manger.

(c) Job Rotation. Under this system, an individual is transferred one job to another or from open department all to another in the co-ordinated and planned manager with a view to broaden the general background of the trainee in the business. The trainees is rotated from one job to another and thus the acquires a considerable degree of specialised knowledge and skill but a man can never acquire t diversified skill needed for promotion unless is deliberately put in different types of situations.

(d) Special Project. A special assignment is a highly useful training device, under which a trainee is assigned a project that is closely related to his job. He well study the problem and submit the written recommendations upon it. It will not only only provide the trainee a valuable experience in tackling the problem but would also have the other values of educating the trainees about t importance of t problem but would also have the other values of educating the trainees about the importance of the problem and to understand the organisational relationship of the problem with different angles. Thus the trainee acquires knowledge of the assigned task and learns to work with other s having different view points.

(e) Committee Assignments: This system is similar to special project. Under this system an adhoc committee is constituted and is assigned a subject related to the business to discuss and make recommendations. The committee will study the problem, discuss it and submit to be report containing the various suggestions and recommendations to the departmental manager. With a view to avoid the unnecessary hardships in studying the problem, the members of the committee should be selected from different departments, having specialised knowledge in different fields but connecting to the problem.

The Need of Executive DevelopmentActing as the life's crucial portion, change is inevitable in some form or the other. Even in professional life, change will be the only thing that can never alter. For the reason that the firms are conscious of this truth, they also know that tomorrow's talented leaders will replace today's experienced ones. This is where executive development comes into the picture. Also identified as succession preparing, executive development refers to a process via which the present leaders decide on and groom the future ones. It is an excellent planning that secures your future enterprise via the responsibilities of the current leaders.

Executive development entails a methodical preparing that enables identifying the prospective people who have the power to take up responsibilities, challenges, and risks. Further, these probable persons are such that they recognize thoroughly what they are going to be performing or how they'll be acting right now as well as tomorrow. Nevertheless, it really is intriguing to think that what makes this developmental procedure a success along with the reply to this is none apart from the real-life exposure.

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This exposure is needed mainly because the corporate life is uncertain also as off-putting for which one have to be quite versatile and optimistic. Hence, executive development focuses on useful techniques for instance action learning, special assignments, and job rotation via which the proposed leaders can prepare for the unforeseen or future challenges.

While grooming the future leaders, it is obvious that you will consider those candidates that are reliable, loyal, hard working, and dedicated to the company. It is not necessary that you have to look for them outside. In fact, an increasing number of corporate executives are apprehending that developing the skills and promoting the role of their own employees is one of the ideal ways to achieve the goal of future leaders. After all, the current employees are the most precious assets of their business.

Moreover, many surveys have convincingly concluded that the real strength of the top rated companies is their own employees. When these employees tend to remain with the company for a long time, they are surely the only main factor behind the success. This is because they know about the company's vision and goals in detail and work with full dedication to achieve them.

In case you are the current leader and wish to identify the future ones, you should become impartial and readily provide a good opportunity for them to prosper. You must comprehend that these potential candidates deserve assistance, awareness, time, and guidance to obtain prepared to grab every probable opportunity. To achieve this, executive development is just imperative. This type of development is only doable if the workers of the executive level make effective plans for these upcoming leaders.

These plans have to contemplate the risks including resignation, retirement, death, and scandals which will completely alter the direction of the corporation. For those who don't contemplate these unexpected situations, you program would be like a method with no back up to bridge to gap until a brand new leader is in place, which will make your organization to float for sometime rather than running nicely. In this case, you may also have to contemplate disaster planning, now becoming a vital portion of executive development.

MODULE 4

Remuneration

Remuneration is the total compensation that an employee receives in exchange for the service he performs for his employer. Typically, this consists of monetary rewards, also referred to as wage or salary. A number of complementary benefits, however, are increasingly popular remuneration mechanisms.

Payment or compensation received for services or employment. This includes the base salary and any bonuses or other economic benefits that an employee or executive receives during employment.

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Understanding the components of your salary and their taxationYour salary consists of many components. This article explains what each component means. It also discusses the income tax applicability of each component.

[The article has been inspired by a query from reader Dinesh Kumar]

There are many components in a salary structure that form your salary – some components are monthly, whereas some are yearly.

(Note: This article talks about the most common components of your salary. It doesn’t talk about the Cost To Company or CTC salary. To know more about your CTC salary and its calculation, please read “Cost To Company or CTC salary: Understanding and Calculation”)

Let’s understand some of the more popular components of your salary.

Basic

As the name suggests, this forms the very basis of your salary. This is the core of your salary, and many other components may be calculated based on this amount.

Basic usually depends on your grade within the company’s salary structure.

Many deductions are also dependent on the basic – for example, your contribution (and the matching component by your employer) to provident fund is 12% of your basic.

(To know more about provident fund and voluntary provident fund, please read “Provident Fund (PF) and Voluntary Provident Fund (VPF)”)

Basic is paid out every month, and is a taxable component of your salary.

Dearness Allowance (DA)

The Dearness Allowance is paid out to compensate for increase in the general cost of living due to inflation.

DA is paid out every month. It is a taxable component of your salary.

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Incentive / Bonus

Incentives or bonuses are paid out depending on your performance (and, at times, depending on the company’s / division’s performance as well). This is to reward employees for their better performance.

Incentive is usually paid out monthly. A bonus can be paid out monthly or can be paid out once a year.

Incentive and bonus are fully taxable.

Conveyance Allowance

Conveyance allowance is paid out to meet your expenses on commute related transportation.

Conveyance allowance is paid out every month.

Conveyance allowance upto Rs. 800 per month (Rs. 9,600 per year) is tax-free. Any amount over it is taxable.

House Rent Allowance (HRA)

House Rent Allowance (HRA) is paid out to meet full or part of your expenditure on renting a house.

HRA may be expressed as a percentage of your basic.

House Rent Allowance is paid out every month.

HRA can be tax-free, subject to certain conditions. For more on taxation of HRA, please read “Income Tax (IT) treatment of House Rent Allowance (HRA)”.

Medical Allowance (Reimbursements)

Medical allowance is paid out to help you with the amount that you spend on medical treatment and medicines.

Medical allowance can be paid out monthly or yearly.

Medical allowance is a fully taxable component of your salary.

However, if you receive reimbursement of your medical expenses against submission of bills, such medical reimbursement is tax-free upto Rs. 15,000 per year.

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Leave Travel Allowance / Concession (LTA / LTC)

LTA is paid to encourage you to take periodic vacations and travel with your family.

Leave Travel Allowance is usually paid out once a year.

LTA / LTC can be tax-free, provided certain conditions are met. For more on taxation of LTA / LTC, please read “Income tax treatment of leave travel allowance / concession (LTA / LTC)”.

Vehicle Allowance

This is an allowance given to you so that you can maintain a vehicle.

It is usually paid out monthly, and is taxable.

Telephone / Mobile Allowance

This is an allowance given to you so that you can maintain a telephone (landline or a cell phone).

It is usually paid out monthly, and is taxable.

Special Allowance

Special Allowance can be given out to pay money that doesn’t fit into any other head!

Such allowances are paid out monthly, and are taxable.

INCENTIVESIn economics, an incentive is any factor (financial or non-financial) that provides a motive for a particular course of action, or counts as a reason for preferring one choice to the alternatives.

In economics, an incentive is any factor (financial or non-financial) that provides a motive for a particular course of action, or counts as a reason for preferring one choice to the alternatives.

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Incentive is reward for hard work and it can be financial or non – financial like promotion other benefits. Improper structured and planned incentive schemes can be root of all troubles and disputes.

-Incentives can be classified according to the different ways in which they motivate agents to take a particular course of action. One common and useful taxonomy divides incentives into three broad classes:

-Remunerative incentives (or financial incentives) are said to exist where an agent can expect some form of material reward — especially money — in exchange for acting in a particular way.

-Moral incentives are said to exist where a particular choice is widely regarded as the right thing to do, or as particularly admirable, or where the failure to act in a certain way is condemned as indecent. A person acting on a moral incentive can expect a sense of self-esteem, and approval or even admiration from his community; a person acting against a moral incentive can expect a sense of guilt, and condemnation or even ostracism from the community.

Coercive incentives are said to exist where a person can expect that the failure to act in a particular way will result in physical force being used against them (or their loved ones) by others in the community — for example, by inflicting pain in punishment, or by imprisonment, or by confiscating or destroying their possessions. (There is another common usage in which incentive is contrasted with coercion, as when economic moralists contrast incentive-driven work—such as entrepreneurship, employment, or volunteering motivated by remunerative, moral, or personal incentives—with coerced work—such as slavery or serfdom, where work is motivated by the threat or use of violence. In this usage, the category of "coercive incentives" is excluded. For the purposes of this article, however, "incentive" is used in the broader sense defined above.)

These categories do not, by any means, exhaust every possible form of incentive that an individual person may have. In particular, they do not encompass the many other forms of incentive—which may be roughly grouped together under the heading of personal incentives—which motivate an individual person through their tastes, desires, sense of duty, pride, personal drives to artistic creation or to achieve remarkable feats, and so on. The reason for setting these sorts of incentives to one side is not that they are less important to understanding human action—after all, social incentive structures can only exist in virtue of the effect that social arrangements have on the motives and actions of individual people. Rather, personal incentives are set apart from these other forms of incentive because the distinction above was made for the purpose of understanding and contrasting the social incentive structures established by different forms of social interaction. Personal incentives are essential to understanding why a specific person acts the way they do, but social analysis has to take into account the situation faced by any individual in a given position within a given society—which means mainly examining the practices, rules, and norms established at a social, rather than a personal, level.

It's also worth noting that these categories are not necessarily exclusive; one and the same situation may, in its different aspects, carry incentives that come

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under any or all of these categories. In modern American society, for example, economic prosperity and social esteem are often closely intertwined; and when the people in a culture tend to admire those who are economically successful, or to view those who are not with a certain amount of contempt (see also: classism, Protestant work ethic), the prospect of (for example) getting or losing a job carries not only the obvious remunerative incentives (in terms of the effect on the pocketbook) but also substantial

Types of incentive plans

1. Straight piece rate system : In the straight piece rate system , a worker is paid straight for the number of pieces which he produces per day. Fresher find hard to survive. In this plan quality may suffer.

2. Straight piece rate with guarantee base wage. : A worker is paid straight for output set by management even if worker produces less then the target level output. If worker exceeds this target output , he is given wage in direct proportion to the number of pieces produced by him at the straight piece rate.

3. Differential piece rate system by FW Taylor improved by Merrick suggested separate rate for 70%, 100% and 120 % of target level. In this type of structure fresher could hardly survive.

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4. Halsey plan : W= R.T + (P/100) (S-T).R

W : wage of worker.

R : wage rate.

T : actual time taken to complete job.

P : percentage of profit shared with worker.

S : std. time allowed.

Output standards are based upon previous production records available. Here management also shares a percentage of bonus.

5. Rowan Plan : W=R.T + ((S-T)/S).R.T

Unlike Halsey Plan gives bonus on (S-T)/S ,Thus it can be employed even if the output standard is not very accurate.

6. Gantt Plan : It is improved differential piece rate with minimum base wage guarantee.

7. Bedaux Plan : Like other plan minimum base wage is guaranteed

‘B’ represents unit of work. 1 B stands for 1 standard work minute and it includes working time as well as time for rest. A worker

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earning “60 B “ per hours reaches 100% of standard output or 100 % efficiency.

A bonus is paid to the worker who earns more than 60 B’s in one hour. The bonus as in the original plan is 75% of the number of B’s above 60 in one hour.

W= R.T + (Ns- Nt/60) (75/100).R

8. Emerson’s Efficiency plan: Workers with efficiency =67% to 100 % , incentive given is from 0 to 20%. For 1% increase in output 1% increase in incentive.

9. Group Incentive Plan : Equal distribution of cash or shares between their employees.

Performance Appraisal

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

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." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.

Objectives Of Performance appraisal:

• To review the performance of the employees over a given period of time.

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• To judge the gap between the actual and the desired performance.• To help the management in exercising organizational control.• Helps to strengthen the relationship and communication between superior

– subordinates and management – employees.• To diagnose the strengths and weaknesses of the individuals so as to

identify the training and development needs of the future.• To provide feedback to the employees regarding their past performance.• Provide information to assist in the other personal decisions in the

organization.• Provide clarity of the expectations and responsibilities of the functions to

be performed by the employees.• To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.• To reduce the grievances of the employees.

Process of Performance AppraisalESTABLISHING PERFORMANCE STANDARDSThe first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDSOnce set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

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MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

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DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Importance of Performance Appraisal

The main advantages or importance of performance appraisal are :-

1. Performance Feedback

Most employees are very interested in knowing how well they are doing at present and how they can do better in a future. They want this information to improve their performance in order to get promotions and merit pay. Proper performance feedback can improve the employee's future performance. It also gives him satisfaction and motivation.

2. Employee Training and Development Decisions

Performance Appraisal information is used to find out whether an employee requires additional training and development. Deficiencies in performance may be due to inadequate knowledge or skills. For e.g. A professor may improve his efficiency by attending workshops or seminars about his subject. Performance appraisal helps a manager to find out whether he needs additional training for improving his current job performance. Similarly, if the performance appraisal results show that he can perform well in a higher position, then he is given training for the higher level position.

3. Validation of Selection Process

Performance appraisal is a means of validating both internal (promotions and transfers) and external (hiring new employees from outside) sources. Organisations spend a lot of time and money for recruiting and selecting employees. Various tools used in the selection process are application blanks, interviews, psychological tests, etc. These tools are used to predict (guess) the candidate's performance on the job. A proper performance appraisal finds out the validity of the various selection tools and so the company can follow suitable steps for selecting employees in future.

4. Promotions

Performance appraisal is a way of finding out which employee should be given a promotion. Past appraisals, together with other background data, will enable management to select proper persons for promotion.

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5. Transfers

Performance appraisal is also useful for taking transfer decisions. Transfers often involve changes in job responsibilities, and it is important to find out the employees who can take these responsibilities. Such identification of employees who can be transferred is possible through the performance appraisal.

6. Layoff Decisions

Performance appraisal is a good way of taking layoff decisions. Employees may be asked to lay off, if the need arises. The weakest performers are the first to be laid off. If there is no performance appraisal, then there are chances that the best men in the department may be laid off.

7. Compensation Decisions

Performance appraisal can be used to compensate the employees by increasing their pay and other incentives. This is truer in the case of managerial jobs and also in the case of employees in non-unionized organisations. The better performances are rewarded with merit pay.

8. Human Resource Planning (HRP)

The appraisal process helps in human resource planning (HRP). Accurate and current appraisal data regarding certain employees helps the management in talking decisions for future employment. Without the knowledge of who is capable of being promoted, demoted, transferred, laid off or terminated, management cannot make employment plans for the future.

9. Career Development

Performance appraisal also enables managers to coach and counsel employees in their career development.

Performance appraisal methods

Performance appraisal methods include 11 appraisal methods / types as follows:

1. Critical incident method

This format of performance appraisal is a method which is involved identifying and describing specific incidents where employees did something really well or that needs improving during their performance period.

2. Weighted checklist method

In this style, performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs.

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3. Paired comparison analysis

This form of performance appraisal is a good way to make full use of the methods of options. There will be a list of relevant options. Each option is in comparison with the others in the list. The results will be calculated and then such option with highest score will be mostly chosen.

4. Graphic rating scales

This format is considered the oldest and most popular method to assess the employee’s performance.

In this style of performance appraisal, the management just simply does checks on the performance levels of their staff.

5. Essay Evaluation method

In this style of performance appraisal, managers/ supervisors are required to figure out the strong and weak points of staff’s behaviors. Essay evaluation method is a non-quantitative technique. It is often mixed with the method the graphic rating scale.

6. Behaviorally anchored rating scales

This formatted performance appraisal is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. The form is a mix of the rating scale and critical incident techniques to assess performance of the staff.

7. Performance ranking method

The performance appraisal of ranking is used to assess the working performance of employees from the highest to lowest levels.

Managers will make comparisons of an employee with the others, instead of making comparison of each employee with some certain standards.

8. Management By Objectives (MBO) method

MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them.

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9. 360 degree performance appraisal

The style of 360 degree performance appraisal is a method that employees will give confidential and anonymous assessments on their colleagues. This post also information that can be used as references for such methods of performance assessments of 720, 540, 180…

10.Forced ranking (forced distribution)

In this style of performance appraisal, employees are ranked in terms of forced allocations.

For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest one.

11. Behavioral Observation Scales

The method based on the scales of observation on behaviors is the one in which important tasks that workers have performed during their working time will be assessed on a regular basis.

PERFORMANCE APPRAISAL - THE BENEFITS TO THE ORGANIZATION, TO THE SUPERVISOR, AND TO THE EMPLOYEE HIMSELF OR HERSELF.

Organization Supervisor Employee

Communicatescorporate goals

Builds management skills Finds out how they’re doing

Provides managementwith decision-makinginformation on humanresources

Develops and improves rapport with employees

Provides recognition for accomplishments

Provides objectivebasis for raises,promotions, training,and other personnelactions

Identifies and rewards high performers

Allows for two-way communication on goals and performance

Builds stronger working relationships

Identifies performers needing improvement for coaching/training

Encourages taking responsibility for their performance and progress

Improves overall organizational productivity

Improves individual employee productivity

Helps set goals and direct efforts

Provides documentation for inquiries on general promotion policies or individual claims ofdiscrimination

Identifies general training needs

Provides opportunities for career development and improvement

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Demonstrates fairness to employees

Assures fair individual evaluations

Improves group morale

Module 5:

INTRODUCTION

Discipline and grievances at work For any organization to move towards excellence, maintenance of harmonious relationships between the people and the departments within the organization is a critical pre-requisite. This requires the presence of an effective discipline and grievances management system in the organization.

In the Indian context, the traditional Indian business organization viewed discipline as a strict, regimental approach where the employee or the factory worker was expected to operate within the given parameters. Any perceived violation of these parameters would be met with strict disciplinary action. However, the downside of this approach was that it created a culture of fear, resulting in a loss of creativity, experimentation, challenge, and healthy brainstorming on part of the employees.

The long-term consequence of this traditional disciplinary approach was that innovation and originality got largely stifled in the Indian organizations, and a culture of “yesmanship” pervaded through the system. However, the modern management view of discipline is quite the opposite of the traditional approach. It encourages constructive and positive solutions to disciplinary problems. Its key goal is to help the erring employee modify his behaviour, which is for his own betterment within the organization, as well for the organization’s benefit. Discipline in modern management is a tool to work “for” the employees, and not “against” the employees.

At a broader level, promotion of healthy industrial relations between the management, trade union, and the workers is a crucial objective of good discipline and grievance management within the organization. (1) Grievance management must walk hand in hand with organizational discipline. In a democratic set-up any employee should be in a position to express his dissatisfaction, whether it be a minor irritation, a serious problem, or a difference of opinion in the work assignment, or in the terms and conditions of employment.

The National Commission on Labour (1969) narrows the scope of grievances to the individual issues that are of minor or manageable nature within the organization. Any general grievances of a large group of employees or of a large magnitude may need to be handled through arbitration or legal recourse, unless they are resolved amicably between the employees and the management.

Counselling is a critical area of human resource management that tends to get ignored in the Indian organizations till today. Counselling creates a platform for mediation and resolution of

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minor disputes, complaints and disciplinary problems within the organization. It is a positive and healthy approach to handle discipline and grievance issues. It creates an atmosphere of engagement, and does not let the employees feel helpless or dissatisfied at any level. It is vital for the medium and large Indian organizations to appoint a trained and experienced counsellor who handle most of the disciplinary matters and grievances skilfully and in long-term interest of the employee as well as the organization.

Harmony and team spirit is the key to success for any organization at the end of the day. Ultimately, it depends upon the leadership skills of the top management how constructively they handle the sensitive issues of discipline and grievances, and create an environment of mutual trust and positive cooperation within the organization.

Discipline & grievance Management

Taking disciplinary action in the workplace is notoriously un-fun for managers and supervisors. Management of discipline and grievances requires a variety of skills and attention to processes and if it lacks in either, it could cost a company a lot of time, money and, in some cases, their reputation. To effectively manage discipline and grievances you must know the appropriate methods and laws to handle the process. HR Tools can leverage discipline and grievance management with confidence from a strong understanding of the need for legal compliance combined with the proper procedures.

Avoiding Tribunals that can cost your business both time and money means paying close attention to UK employment law when handling discipline and grievance management. HR Tools has the knowledge of employee rights and HR policies and procedures to help avoid unfair dismissals, monitor legal compliance and respect the expectations of the ACAS and Employment Tribunals when it comes to discipline and grievances in the workplace.

There is a process to discipline and grievance management and it includes knowing how to conduct an interview to ensure full disclosure with great listening skills and a fair assessment process that accurately evaluates the evidence, history and prior performance. Discipline and grievance management requires the ability to deal with a variety of situations and not only recognizing and dealing with grievances, but establishing action plans to deal with discipline and grievances that is uniform and consistent. HR Tools has the experience and tools to do just that.

Discipline and grievances

Includes disciplinary procedures, disciplinary interviews, conduct, gross misconduct, capability, oral warnings, written warnings, ACAS code of practice, employee complaints, grievance procedures, grievance handling and resolving grievances

DEFINITION OF DESCIPLINEDiscipline is the force that prompts individuals or groups to observe rules, regulations, standards and procedures deemed necessary for an organization.

Therefore discipline means securing consistent behaviour in accordance with the accepted norms of behaviour. I am sure you will agree that discipline is essential in every aspect of life. It is equally essential in industrial undertakings. Simply stated, discipline meansorderliness

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. It implies the absence of chaos, irregularity and confusion in the behaviour of workers. Let us examine another definition by Ordway Tead, “Discipline is the orderly conduct of affairs by the members of an organization who adhere to its necessary regulations because they desire to cooperate harmoniously in forwarding the end which the group has in view, and willingly recognize that, to do this, their wishes must be brought into a reasonable unison with the requirements of the group in action.”

Discipline

Discipline is needed to regulate the behavior of people, maintain peace and channel their efforts organizational goals.

Types of discipline are as:

1. Negative discipline.

2. Positive discipline

3. Self discipline

4. Progressive discipline

Types of discipline resolutions:

1. Issuing a letter of charge

2. Consideration of explanation

3. Show-cause notice

4. Holding of a fully fledged enquiry

5. Making a final order of punishment

6. Follow up

Positive DisciplinePositive discipline involves creation of an atmosphere in the organisation whereby employees willingly conform to the established rules and regulations. Positive discipline can be achieved through rewards and effective leadership. According to Spiegel, “Positive discipline does not replace reason but applies reason to the achievement of a common objective. Positive Discipline does not restrict the individual freedom but enables him to have a greater degree of self-expression in striving to achieve the group objective, which he identifies as his own.”Do you find that a little confusing? Let me simplify this for you. It means that positive Discipline is not that ideal that it can’t be achieved. It also does not imply that an individual’s freedom is restricted. Rather it provides better chances to an individual for expressing himself. The individual in this process, is able to bridge the gap between his and the group goals. It is also to be noted that positive discipline promotes cooperating and coordination with a minimum of

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formal organization. It reduces the need for strict supervision required to maintain standards and observe rules and regulations. Everyone is answerable to oneself and therefore one is not answerable to anyone else. (The constructive approach to discipline will be explained later)

Negative DisciplineUnder negative discipline, penalties are used to force the workers to obey rules and regulations. In other words, workers try to adhere to rules and regulations out of fear of warnings, penalties and other forms of punishment. This approach to discipline is called negative or punitive approach. This is an unfavourable state that subjects the employees to frustration, and consequently results in low morale. Let me ask you a question, how will you react if you are punished for a wrong act of yours? Will you welcome it? I am sure it would be much better that an environment is created where one does not commit any wrongful act. If at all there is some indiscipline, tit has to be handled in a calm and matured way. There is another drawback related to negative discipline. An employee goes astray in his behaviour whenever there is a slightest possibility of escaping the punishment or when he believes that his action will go unnoticed. Progressive and development oriented managers adopt a positive approach to discipline rather than negative approach. In the positive approach, attempts are made to educate the workers the values of discipline. The workers should be taught self-discipline. Disciplinary action should be taken only in exceptional circumstances where no other alternative is left. Disciplinary action should always incorporate consideration of just cause and due process.

Self-discipline

Self-discipline is the companion of willpower. It is synonymous with self-control, which is the ability to avoid unreasonable excess of anything that could lead to negative consequences.

Self-discipline appears in various forms, such as endurance, perseverance and restraint, and as the ability to carry out one's decisions and plans, in spite of inconvenience, hardships or obstacles.

One of the main characteristics of self-discipline is the ability to forgo instinctive and immediate gratification or pleasure, in favor of some greater gain or more satisfying results, even if this requires effort and time.

A self-disciplined life makes the job of good workplace ethics more attainable. Self-discipline has always been one of those elusive character traits that your parents, coaches, or teachers have tried to instill in you for as long as you can remember. Sometimes you had it and other times you didn't.

Progressive Discipline

Progressive Discipline is a system of discipline where the penalties increase upon repeat occurrences.

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This term is often used in an employment or human resources context where rather than terminating employees for first or minor infractions, there is a system of escalating responses intended to correct the negative behaviour rather than to punish the employee.

The typical stages of progressive discipline in a workplace are:

1. Counselling or a verbal warning;2. A written warning;3. Suspension or demotion; and4. Termination.

The stage chosen for a particular infraction will depend on a variety of factors that include the severity of the infraction, the previous work history of the employee and how the choice will affect others in the organization.

Causes Of Indiscipline:The indiscipline in Indian industries can be attributed to causes like politicized trade union leadership, intra-union and inter-union rivalry and also management tactics like deliberate delay in disciplinary procedure, imposition of penalties such as transfer to an inconvenient place at a short notice, withholding of pay, maintenance of confidential reports, insincerity and dishonesty of superiors, etc. We will be discussing the causes in details shortly. Put on your thinking caps and tell me what do you think can lead to indiscipline in the organisations? The reasons could range anything from poor wages to, poor management and the communication gaps between the union and management.The commoncauses of indiscipline are as follows:

(i)Unfair Management Practices:Management sometimes indulges in unfair practices like:•Wage discrimination• Non-compliance with promotional policies and transfer policies•Discrimination in allotment of work •Defective handling of grievances•Payment of low wages•Delay in payment of wages•Creating low quality work life etc. These unfair management practices gradually result in indiscipline.

(ii) Absence of Effective Leadership: Absence of effective leadership results in poor management in the areas of direction, guidance, instructions etc. This in turn, results in indiscipline. I am sure you remember the importance of leadership as studied in the last semester. If you do (which I suppose you do), you can relate the importance of effective leadership with handling indiscipline.

(iii) Communication Barriers: Communication barriers and absence of humane approach on the part of superiors result in frustration and indiscipline among the workers. The management should clearlyFormulate the policies regarding discipline. These policies should be communicated and the policies should be consistently followed in the organisations. The management should also be empathetic towards the employees.

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(iv) Inadequate attention to personnel Problems: Delay in solving personnel problems develops frustration among individual workers. The management should be proactive so that there is no discontent among the workers. It should adopt a parental attitude towards its employees. However it should be noted that no relationship can continue for long if it is one sided. What I am implying here is that the workers should also live up to their commitments. They should be reasonable in their demands.

(v) Victimisation: Victimisation of subordinate also results in indiscipline. The management should not exploit the workers. It is also in the long-term interest of the management to take care of its internal customers(Remember we have discussed this term in class before!)

(vi) Absence of Code of Conduct. This creates confusion and also provides chance for discrimination while taking disciplinary action.

Essential of a good disciplinary system

Characteristics of a Sound Disciplinary System (Red Hot Stove Rule)

Discipline should be imposed without generating resentment. Mc Gregor propounded the “red hot stove rule” which says that a sound and effective disciplinary system in an organization should have the following characteristics-

1. Immediate- Just as when you touch a red hot stove, the burn is immediate, similarly the penalty for violation should be immediate/ immediate disciplinary action must be taken for violation of rules.

2. Consistent- Just as a red hot stove burns everyone in same manner; likewise, there should be high consistency in a sound disciplinary system.

3. Impersonal- Just as a person is burned because he touches the red hot stove and not because of any personal feelings, likewise, impersonality should be maintained by refraining from personal or subjective feelings.

4. Prior warning and notice- Just as an individual has a warning when he moves closer to the stove that he would be burned on touching it, likewise, a sound disciplinary system should give advance warning to the employees as to the implications of not conforming to the standards of behaviour/code of conduct in an organization.

In short, a sound disciplinary system presupposes-

1. Acquaintance/Knowledge of rules- The employees should be well aware of the desired code of conduct/ standards of behaviour in the organization. This code of discipline should be published in employee handbook.

2. Timely action- Timely enquiry should be conducted for breaking the code of conduct in an organization. The more later the enquiry is made, the more forgetful one becomes and the more he feels that punishment is not deserved.

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3. Fair and just action- There should be same punishment for same offence/ misconduct. There should be no favouritism. Discipline should be uniformly enforced always.

4. Positive approach- The disciplinary system should be preventive and not punitive. Concentrate on preventing misconduct and not on imposing penalties. The employees should not only be explained the reason for actions taken against them but also how such fines and penalties can be avoided in future.

Meaning and causes of grievances

A grievance can be defined as any sort of dissatisfaction, which needs to be redressed in order to bring about the smooth functioning of the individual in the organization. Broadly, a grievance can be defined as any discontent of dissatisfaction with any aspect of the organization. It can be real or imaginary, legitimate or ridiculous, rated or unvoiced, written or oral, it must be however, find expression in some form of the other.

Grievance is a feeling of discontentment or dissatisfaction among workers regarding anything concerned with the company.

Grievance maybe felt by any party (employer of employee) against the other party. Dale S. Beach has expressed his views as follows: “Grievance is any dissatisfaction or feeling of injustice in connection with one's employment situation that is brought to the attention of management.” Richard P. Calhoon defines “a grievance as anything that an employee thinks or feels is wrong, generally accompanied by an activity disturbing feeling.” The views in this connection have been will expressed by Michal J. Jucious as “any discontent or dissatisfaction whether expressed or not and whether valid or not, arising out of anything connected wit the company that an employee thinks, believes, or even feels is unfair, injust or inequitable.”

Thus, dissatisfaction, when expressed becomes a complaint and when he believes that some injustice is being committed, it becomes a grievance.

There may be varied reasons for the arising of grievances which may be summarized as follows:

(i) Difference of opinion or thought may give rise to a grievance. When both the parties stick to their contradictory views and opinions and it becomes a prestige point for both the parties, grievances may arise.

(ii) Position of trade union in the organisation may be the reasons for grievance. Where labour organizations are new and or strong and they bent upon to do something for the welfare of workers, the grievance Arieses because management will not agree to the proposal made by it.

(iii) Demand for labour welfare facilities or for improvement in the working conditions of labour may be the cause for grievance.

(iv) Doubts and fears in the minds of workers for any injustice to be committed to them may

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give rise the grievance.

(v) Grievance may be caused by any social injustice. If a facility is provided in similar units, it may be a bone of contention in this industry or unit.

(vi) Grievance may arise if companies polices and procedures are not followed strictly or followed in a prejudiced manner or they are begin assigned a different explanation.

Grievances occur for a variety of reasons:

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. 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.

GRIEVANCE REDRESSAL PROCEDURE

AIMS & OBJECTIVES: To provide the employees an easy and readily accessible machinery for prompt disposal of their day to day Grievances.

NATURE OF GRIEVANCES THAT FALL FOR REDRESSAL UNDER GRIEVANCE PROCEDURE: Complaints affecting one or more individual workers in respect of their – wage, payment of overtime wages, bonus, railway fare (LTC/LLTC), leave, transfer, promotions, increments seniority, work assignment, working conditions, hours of employment, output of workmen (work load), training and settlement of terminal benefits.

DIFFERENT STAGES FOR REDRESSAL OF GRIEVANCES, PROVIDED FOR UNDER COMPANY’S GRIEVANCE REDRESSAL PROCEDURE:

FIRST STAGE (MINE/DEPARTMENT LEVEL): The aggrieved employee shall represent his grievance either in person or in writing to the Welfare Officer or any other Officer in the Dept, which should be acknowledged. A written reply should be sent to the worker under the signature of the Manager/HoD within 10 days.

SECOND STAGE (AREA LEVEL): If the employee is not satisfied, he may request

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the Manager/HoD to forward his Grievance to the Grievance Committee constituted at Area level which consists of –

MANAGEMENT REPRESENTATIVES WORKMENREPRESENTATIVES

a) General Manager of the Area b) Manager/HODc) Area Personnel Dept. Head(Member Secretary)

a) One permanent member nominated by the Recognised Trade Union of the Area OR in his absence, a representative duly authorised by the said Union.b) A representative of the Registered Trade Union OR a co-worker of the worker’s choice.

The recommendations of the Grievance Committee shall be communicated to the concerned workmen within 10 days. A copy of the minutes of the Grievance Committee meeting may be supplied to the Representative of the Recognised Union.

THIRD STAGE (APPELLATE AUTHORITY – CORPORATE LEVEL): If the employee is not satisfied with the reply given by the Grievance Committee at Area level, he can represent the matter to the Director (P,A&W) at Corporate level.

Example:Grievance Redressal Cell (GRC) HINDUSTAN PETROLEUMIt is the group that will review the references received from the Parties and decide the matter.

3.0 Authorities to handle grievances

3.1 There will be a process to deal with the grievances received from the tendering parties or the prospective tenderers based on the Tender document issued.

3.2 The first level, say Level I, of such process will comprise of a Grievance Redressal Cell (GRC). This Cell will consist of the following:

Sr.No.

BU/Function Head Member Finance

Member Purchase (Co-

ordinator)Refineries GRCs

1 Visakh Head Head- Head-Materials

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Refinery Refinery Finance

2 Mumbai Refinery

Head Refinery

Head-Finance

Head-Materials

Marketing GRCs

1 Retail SBU Head-Retail

Head-Comml.**

Head-Proc.**

2 Direct Sales SBU

Head-Direct Sales

Head-Comml.** Head-Proc.**

3 LPG SBU Head-LPG Head-Comml.**

Head-Proc.**

4 Aviation SBU Head-Aviation

Head-Comml.**

Head-Proc.**

5 Projects & Pipelines*

Head-P&P Head-Comml.**

Head-Proc.**

6

Operations and Distribution (O&D)

Head-O&D Head-Comml.**

Head-Proc.**

Corporate GRCs

1 Corporate Head-IS/HR (as applicable)

Head-Finance (Corp.)

Head-Procurement (DGM-Administration)

2 Central Engineering (CE)

Head-CECHead-Finance (CE)

Head-Procurement

* Includes Marketing Projects** Concerned SBU

3.3 The Co-ordinator for each of the Cell is respective Head - Materials/Procurement of - Visakh Refinery, Mumbai Refinery, Marketing SBUs & Corporate.

3.4 All the grievances will be lodged with the Co-ordinator of the Cell.

3.5 This Cell will examine the grievances and decide the matter.

3.6 The second level of Grievance Redressal Mechanism is the Executive Committee - Refineries for both Mumbai & Visakh

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Refineries, Executive Committee - Marketing & Executive Committee -Corporate for respective functions. The decision of the Executive Committee is final.

4.0 Grievance Redressal Process

Level - I

4.1 If a grievance is received by the Grievance Redressal Cell, the Co-ordinator will first acknowledge the receipt of the grievance to the aggrieved party within 48 hours from the time of receipt of the grievance (Excluding intervening Holidays).

4.2 The Grievance Redressal Cell (GRC) will forward the Grievance to the Tender Inviting Authority at the earliest, who will offer his comments/views to the Cell within 2 days of receipt from GRC.

4.3 On receipt of comments from Tender Inviting Authority, the Grievance Redressal Cell will meet and look into the grievances expressed by the aggrieved party along with the views/comments of the Tender Inviting Authority. The Grievance Redressal Cell can call for relevant records and documents to enable it to firm up its decision on the grievance.

4.4 The Grievance Redressal Cell will decide the matter within 14 days and thereafter communicate the decision to the aggrieved party.

Level - II

4.5 The second level of Grievance Redressal Mechanism is the Executive Committee - Refineries for both Mumbai & Visakh Refineries and Executive Committee - Marketing & Executive Committee -Corporate for respective functions which would examine and decide on any appeal / representation on the decision of the Grievance Redressal Cell.

4.6 Parties aggrieved by the decision of the Grievance Redressal Cell, can appeal / represent to the Executive Committee within 7 days of receipt of the decision with a copy

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to GRC Level-I for co-ordination. Appeal received after seven days will not be considered.

4.6 The EC will decide the matter in appeal within 14 days and thereafter communicate the decision to the aggrieved party. The decision of the Executive Committee is final.

5.0 Time limitations for the handling of grievances

5.1 Grievances regarding the Pre-qualification process should be lodged by the aggrieved party within one week from the date of Publication calling for pre-qualification bid. Grievances received after one week from date of Publication will not be considered.

5.2 The decision on Grievance pertaining to Pre-Qualification should be finalised before the shortlisting of the parties is concluded.

5.3 Specific Grievances regarding the Notice Inviting Tender (NIT) should be lodged by the aggrieved party within one week from the last date of sale of tender document, or one week prior to the Due date for Bid Submission, whichever is earlier. Grievances regarding NIT, received thereafter shall not be considered.

5.4 Grievances relating to the tender process (other than “Notice Inviting Tender related grievances”) should be lodged within one week from the date of opening the unpriced bids.

5.5 The Grievance Redressal Cell shall examine the case and decide within 14 working days from the date of receipt of the grievance and advise the function concerned of the same so that they can process the tender further.

5.6 Any grievance after price bid opening should be redressed before award of the contract. No grievances shall be entertained which are received after one week of price bid opening.

5.7 The Coordinator of the Grievance Redressal Cell, on receipt of the grievance by the aggrieved party, should inform the

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Tender Inviting Authority not to finalize the contract till the disposal of the grievance by the Grievance Redressal Cell. The grievance lodged should be disposed of within a reasonable period of 14 working days so that there is no undue delay in awarding the contract.

6.0 Interim Suspension of Tendering Process

6.1 After any grievance is received by the Co-ordinator of the Grievance Redressal Cell, the Cell Members will meet and examine whether the tendering process relating to the concerned matter is to be suspended or not in consultation with the Tender Inviting Authority. The Cell will examine whether there exists a prima facie ground for suspending the tendering process and decide the matter. It may consult, if required, the Executive Committee as to whether the tendering process has to be suspended till a final decision is taken on the grievance.

6.2 The decision to suspend the tendering process or not and disposal of the grievance should preferably be taken by the Grievance Redressal Cell and/or Executive Committee at the earliest but not later than 14 working days from the receipt of grievance keeping in mind the schedule of activities connected with the tender concerned.

6.3 When it is decided to suspend the Tendering Process, the grievance should be examined and disposed off by the Grievance Redressal Cell & Executive Committee at the earliest, but not later than 14 days since it will be necessary to either continue with the tender as per earlier norms or it is decided to re-invite the tender with suitable changes.

7.0 Other General Provisions

7.1 A final written reply to the aggrieved party will be given by Coordinator of Grievance Redressal Cell / Executive Committee within 21 working days from the date of receipt of the grievance, in line with the minutes of respective GRC/ EC.

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7.2 The Grievance Redressal Cell / Executive Committee, while firming up its recommendations, can seek the views of other relevant Departments like Finance, Vigilance and Legal or any other Department concerned with the issue.

7.3 The Grievance Redressal Cell & Executive Committee is entitled to give a personal hearing to the aggrieved party, if necessary.

7.4 If a Grievance is related to a contract already awarded and acted upon, and if the Grievance Cell & Executive Committee is of the view that the grievance needs review for remedial action for future tenders, it would submit its recommendation to the concerned SBU/Dept. head for future tenders.

7.5 Company’s Tender Grievance Redressal Mechanism will be displayed in its Website in the Tenders Page.

7.6 The Grievance Redressal Cell & Executive Committee will maintain a grievance register giving details of the tender number, date of receipt of grievance letter, nature of grievance in brief, details of the decisions taken and the date of communication to the aggrieved party.

7.7 The Grievance Redressal Cell & Executive Committee will also submit a quarterly report on the grievances handled to the Committee of Functional Directors. A copy of Yearly Report will be submitted to the Board for information.

7.8 The relevant clause of Grievance Redressal Mechanism Procedure should be incorporated in GTC of all Tender documents along with the name and address of the Officer-designate of the Grievance Redressal Cell/ Secretary of the concerned Executive Committee, to whom the grievance letter/ Appeal should be addressed to.

8.0 Integrity Pact

8.1 Notwithstanding the GRP guidelines above, the provisions of the Integrity Pact will be applicable independently to tenders over Rs. 1 Crore.