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1 Discuss the managerial functions of Human Resource Management.

Managerial Functions

―Management is a multi-purpose organ which has three jobs, two of which are directly related to personnel managing a business: ‗managing managers and managing workers and the work S Lawrence Appley says that ―Management is the accomplishment of results through the efforts of other people‖. In the opinion of Harold Koontz, ―It is the art of getting things done through people and with informally organized groups.

In their view, management may be thought of as the process of allocating an organisations inputs (human and economic resources) by planning, organizing, directing and controlling for the purpose of producing outputs (goods and services) desired by its customers so that organisation job objectives are accomplished in the process, work is performed with and through organisation personnel in an ever changing business environment.

  • (a) Planning is a pre-determined course of action. According to Allen, ―it is a trap laid to capture the future‖ Terry is of the View that ―planning is the foundation of most successful actions of any enterprise.‖ Planning is the determination of the plans, strategies, programmes, policies, procedures, and standards needs to accomplish the desired organisatoin objectives in fact, ―planning today avoids crisis tomorrow.‖

  • (b) Organizing: After a course of action has been determined, an organisation should be established to carry it out. According to J.c. Massie, ―An organisation is a structure, a framework and a process by which a cooperative group of human beings allocates its tasks among its members, identifies relationships and integrates its activities towards common objectives.‖ In the words of Drucker: ―The right organizational structure is the necessary foundation; without it, the best performance in all other areas of management will be ineffectual and frustrated.‖

  • (c) Directing (motivating, actuating or commanding) the subordinates at any level is a basic function of the managerial personnel. According to McGregor, ―many managers would agree that the effectiveness of their organisatoin would be at least doubled if they could discover how to tap the unrealized potential present in their human resources‖

  • (d) Coordinating and Controlling. Coordinating refers to balancing timing and integrating activities in an organisation, so that a unity of action in pursuit of a common purpose is achieved. In the words of Terry, ―Co-ordination deals with the task of blending efforts in order to ensure a successful attainment of an objective.‖

  • (e) Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with actions and remedial actions. ―it is not just score-keeping. It is not just plotting the course and getting location reports; but rather it is steering the ship.‖

2 State the importance of Human Resource Planning.

Importance of Human Resources

The concepts of ―Manpower‖ or ―human resource‖ is meant as ―

the total knowledge, skills

creative abilities, talents and aptitudes of an organization‘s work force, as well as the values, attitudes and benefits of an individual involved…… It is the sum total of inherent abilities, acquired knowledge and

skills represented by the talents and aptitudes of the employed persons




the ―M‘s‖ in the

management (i.e., the management of materials, machines, methods, money, motive power), the most

important is ―M‖ for men or human resources.

In any organisation, Human resources are utilized to the maximum possible extent in order to

achieve individual and organizational goals.

An organization‘s performance and resulting productivity are

directly proportional to the quantity and quality of its human resources



―Manpower Planning and ―human resource planning‖ are synonymous. In the past, the pharse

manpower planning was widely used; but not the emphasis is on human resource planning which is more

broad- based. Human resource or manpower planning is “the process by which a management determines how an organisation should move from its current manpower positon to its desired

manpower position.

Through planning, a management strives to have the right number and the right

number and the right kinds of people at the right places, at the right time, to do things which result in both

the organisation and the individual receiving the maximum long-range benefit


Coleman has defined human resource or manpower planning as ―the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organisation.

Stainer defines manpower planning as ―Strategy for the acquisition, utilization, improvement, and preservation of an enterprise‘s human resources. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources

of manpower‖

According to Wickstrom, human-resources planning consists of a series of activities, viz.,

  • (a) Forecasting estimates based upon the specific future plans of a company;

  • (b) Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally;

  • (c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and

  • (d) Planning the necessary programmes of requirements, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

Human resources planning is a double-edged weapon

. If used properly, it leads to the maximum

utilization of human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches of for the management personnel. Therefore, for the success of an enterprise,

human resource planning is a very important function, which can be neglected only at his own peril. It is as necessary as planning for production, marketing, or own peril, it is as necessary as planning for production, marketing, or capital investment.


The necessity of Human resource planning for all organizations is for following reasons:


To carry on its work, every organisation needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning.


Since a large number of persons have to be replaced who have grown old, or who retire, die or become incapacitated because of physical or mental ailments, there is a constant need for replacing such personnel otherwise the work would suffer.

(iii) Human resources planning is essential because of labor turnover which is unavoidable and even beneficial because it arises from factors which are socially and economically sound such as voluntary quits, discharges, marriage, promotions, or factors such as seasonal and cyclical fluctuations in business which cause a constant ebb and flow in the work force in many organisation.


In order to meet the needs of expansion programmes which become necessary because of increase in the demand for goods and services by a growing population, a rising standard of living which calls for larger quantities of the same goods and services as also for new gods; the competitive position of a firm which bring it more business arising from improvements effected in the slump period; and the rate of growth of the organisation, human resource planning is unavoidable.


The nature of the present work force in relation to its changing needs also necessitates are

recruitment of new labour

. To meet the challenge of a new and changing technology and

new techniques of production, existing employees need to the trained or new blood

injected in an organisation.



Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be redeployed; and if there is shortage, it may be made good.


Stainer recommends the following nine strategies for the man power planners:



They should collect, maintain and interpret relevant information regarding human resources.


They should report periodically man power objectives, requirements and existing employment and allied features of manpower.


They should develop procedures and technique to determine the requirements of different types

of manpower over period of time form the standpoint of organisation‘s goals;



They should employ suitable techniques leading to effective allocation of work with a view to improving manpower utilization;


They should conduct research to determine factors hampering the contribution of the individuals and groups to the organisation with a view to modifying or removing these handicaps.

  • (f) They should develop and employ methods of economic assessment of human resources reflecting its features as income-generator and cost and accordingly improving the quality of decisions affecting the manpower.

  • (g) They should evaluate the procurement, promotion and retention of the effective human resources; and

  • (h) They should analyse the dynamic process of recruitment, promotion and loss to the organ is an control these processes with a view to maximizing individual and group performance without involving high cost.

Process of Human Resource Planning

Human resource planning process is one of the most crucial complex and continuing managerial functions. It may be rightly regarded as a multi-step process of human resource planning such as:

  • (a) Deciding goals or objectives;

  • (b) Estimating future organizational structure and manpower requirements;

  • (c) Auditing human resources;

  • (d) Planning job requirements and job descriptions;

(e) Developing a human resource plan. Action Proced for evaluation Overall Inventory Net New programmes Long-
Developing a human resource plan.
Proced for
Net New
of present
for recruiting
for human
& selecting
of human
and Plan
Short term
Work force
Inventory by
Plans for
goals, plans
categories, job
or additions
and budgets
categories job
and selecting
(f) They should develop and employ methods of economic assessment of human resources reflecting its features

Fig. Human Resource Planning System

Objectives of Human Resources Planning

Human resource planning fulfills individual, organizational and national goals; but, according to

Sikula, ―

the ultimate mission or purpose is to relate future human resources to future enterprise

needs so as to maximize the future return on investment in human resources

. ―In effect, the main

purpose is one ‗ of matching or fitting employee abilities to enterprise requirements, an emphasis

on future instead of present arrangement.

  • (A) Estimating the Future Organizational Structure of Forecasting the Manpower Requirements The management must estimate the structure of the organisation at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mix, and competition. Forecasting provides the basic premises on which the manpower planning is built,

Forecasting is necessary for various reasons, such as:



The eventualities and contingencies of general economic business cycles (such of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources.


An expansion following enlargement and growth in business involves the use of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources.


Changes in management philosophies and leadership styles.



The use of mechanical technology (such as the introduction of automatic controls, or the mechanization of materials handling functions) necessitates changes in the skills of workers, as well as a change in the number of employees needed.


Very often, changes in the quantity or quality of products or services require a change in the organisation structure. Plans have to be made for this purpose as well.


may be noted that

for purposes of manpower planning

, the main dimensions to be taken into

consideration are:




The total number of personnel available, this could be obtained from they pay-rolls and other


personnel records, such as the applications for employment. The total number has to be classified on some basis, such as manual workers (i.e., daily-rated, weekly-rated or monthly-rated); clerical employees, ministerial staff, managers and other executives; specialists and skilled and unskilled workers; sex-wise distribution etc.




The job-family, i.e., a detailed job-description for each position such as stenographers who may




departments e.g., finance, marketing, personnel, public relations, general

administration, etc.




distribution of the employees, available in the present departments, say in the age-groups


20-29 years; 30-45 years; 46 years and above.

Objectives of Human Resources Planning Human resource planning fulfills individual, organizational and national goals; but, according

Qualification and experience desired, such as a person with 5 years 10 years experience in a

particular branch/job; and whether under-graduate, post-graduate, or MBAs or graduates in
























engineering work.


The salary range

, etc.

  • (B) Auditing Human Resource

Once the future human resource needs are estimated, the next step to determine the present Supply of manpower resources. This is done through what is called ―Skills Inventory‖. A skills inventory contains data about each employee‘s skills, abilities work preferences and other items

of information which indicate his overall value to the company.

  • (C) Job Analysis After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparation of job descriptions and job specifications. This has been discussed in the later sections of this chapter.

  • (D) Developing a Human Resources Plan This step refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing, therefore, is to decide on the policy should the personnel be hired from within through promotional channels or should it be obtained from an outside source. The best policy which is followed by most organisatoins is to fill up higher vacancies by promotion and lower level positions by recruitment from the labour market.


The responsibilities of the Personnel department are having the responsibilities in man power planning which have been stated by Geisler in the following words:


To assist, counsel and pressurize the operating management to plan and establish objectives;


To collect and summarize data in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business-plan;


To monitor and measure performance, against the plan and keep the top management informed about it; and


To provide the research necessary for effective manpower of organizational planning.

Manpower Plan Component The manpower plan can be broken down into three components:

  • i. Forecasting estimating future needs and stock taking of available resources organisation.




Recruitment plan, to meet the gap between the internal resource and estimated need by external recruitment;


Training and Development plan to utilize fully the human resources of the organisation and to develop the potential resources.

3 Discuss the types of interviews.

One-On-One Interviews: One person interviews each candidate and makes the hiring decision. These interviews tend to be informal; however, it always depends on the employer's style. The interviewer will often have a series of prepared questions, but may have some flexibility in their choices. It is important to maintain eye contact with the person interviewing you.

Panel/Board Interviews: Job seekers are interviewed by two or more individuals, who come to a consensus as to who is the best person for the position. Government, non-profit, and many high tech organizations commonly use this type of interview. Direct your attention at the beginning and end of your response to the person who asked you the question, while in between looking at each member of the panel in turn. If you can link your response to one that you have previously given, do so. If at all possible, get the panel members talking among themselves about your responses. Obtain the names of the interviewers prior to starting and use them during the conversation.

Impromptu Interviews: This interview commonly occurs when employers are approached directly and tends to be very informal and unstructured. Applicants should be prepared at all times for on-the-spot interviews, especially in situations such as a job fair or a cold call. It is an ideal time for employers to ask the candidate some basic questions to determine whether he/she may be interested in formally interviewing the candidate.

Dinner Interviews: These interviews may be structured, informal, or socially situated, such as in a restaurant. Decide what to eat quickly, some interviewers will ask you to order first (do not appear indecisive). Avoid potentially messy foods, such as spaghetti. Be prepared for the conversation to abruptly change from friendly chat to direct interview questions, however, do not underestimate the value of casual discussion, some employers place a great value on it. Be prepared to switch gears rapidly, from fun talk to business talk.

Telephone Interviews: Have a copy of your resume and any points you want to remember to say nearby. If you are on your home telephone, make sure that all roommates or family members are aware of the interview (no loud stereos, barking dogs etc.). Speak a bit slower than usual. It is crucial that you convey your enthusiasm verbally, since the interviewer cannot see your face. If there are pauses, do not worry; the interviewer is likely just taking some notes.

Group Interviews: You will meet the staff who will be your coworkers if you get hired. They will ask you several questions. They will be primarily testing your ability to work in a team environment. They want

to know how you will present information to other people, offer suggestions, relate to other ideas, and work to solve a problem. In short, your interpersonal skills will be tested. It is difficult to prepare for this type of interview except to remember what is being tested and to use the skills that you have, to be the best team player and/or leader you can be. This is a very casual type of interview, but leaving a positive and friendly impression is very important.

Stress Interviews: These interviews are used primarily when the job the company is trying to fill involves an individual to perform under an extreme amount of stress. This interviewing style, when used, is typically found in the sales/marketing arenas. The candidate may have to wait a considerable amount of time for the interview to start, and the interviewer may not be friendly during the interview. This type of interview is used to assess an individual's ability to deal with unexpected as well as expected stressful situations.

Second Interviews: Job seekers are invited back after they have passed the first initial interview. Middle or senior management generally conducts the second interview, together or separately. Applicants can expect more in-depth questions, and the employer will be expecting a greater level of preparation on the part of the candidates. Applicants should continue to research the employer following the first interview, and be prepared to use any information gained through the previous interview to their advantage.

4 State the objectives of Job Evaluation.

The I.L.O. defines job evaluation as ―

an attempt to determine and, compare demands which the normal

performance of a particular job makes on normal workers without taking into account the individual

abilities or performance of the workers concerned


We may define job evaluation as a process of analyzing and describing positions, grouping them and determining their relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements.

It is the quantitative measurements of relative job worth for the purpose of establishing consistent wage rate differentials by objectives means. It measures the differences between job requirements, the objective being the setting of pay for management purposes.

It does not set the price of a job; it merely fixes its relatives worth. It presents and effort to determine the relative value of every job in a plant, and to determine what the fair basic wage for such a job should be. It is not evaluation the merit of the worker who is doing the work. It rates the job and not the qualities of the individual workers on the job, which is the task of employee rating.

Objectives of Job Evaluation

According to I.L.O. Report the objectives of job evaluation are:

  • To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant;

  • To provide a standard procedure for determining the relative worth of each job in a plant;

  • To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community or industry;

  • To ensure that like wages are paid to all qualified employees for like work;

  • To promote a fair and accurate consideration of all employees for advancement and transfer;

  • To provide a factual basis for the consideration of wage rates for similar jobs in a community and in an industry; and

  • To provide information for ‗work organisation, employees‘ selection, placement, training and numerous other similar problems.

5 Explain the objectives of wage administration.

Wage and salary administration affect levels of employee commitment to the organisation. However, fascinating the individual‘s job assignment is, the employee must be paid. Pay affects

the way people work-how much and how well. A large part of the compensation that people receive from work is monetary. Although managers are expected to conserve money and distribute it wisely, many employees feel that they should get more of it for what they do. Wages, salaries and many employee benefits and services are form of compensation.

Administration of employee compensation is called wage and salary administration. According to D.S. Beach ―Wage and Salary Administration refers to the establishment and implementation of sound policies and practices of employee compensation. It includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant organizational problems, development and maintenance of wage structure, establishing rules for administrating wages, wage payment incentives, profit sharing, wage changes and adjustments, supplementary payments, control of compensation costs and other related items.‖

The wage and salary administration aims to establish and maintain an equitable wage and salary structure and an equitable labor cost structure.

Objectives of Wage and Salary Administration :

A sound plan of wage and salary administration seeks to achieve the following objectives :

To establish a fair and equitable compensation offering similar pay for similar work.

To attract competent and qualified personnel.

To retain the present employees by keeping wage levels in tune with competitive units.

To keep labor and administrative costs in line with the ability of the organization to pay.

To improve motivation and morale of employees and to improve union management

relations. To project a good image of the company and to comply with legal needs relating to

wages and salaries. To establish job sequences and lines of promotion wherever applicable.

To minimize the chances of favoritism while assigning the wage rates.

Principles of Wage and Salary Administration :

The following principles should be followed for an effective wage and salary administration ;

 Wage policy should be developed keeping in view the interests of all concerned parties viz.,
Wage policy should be developed keeping in view the interests of all concerned parties
viz., employer, employees, the consumers and the society.
Wage and salary plans should be sufficiently flexible or responsive to changes in internal
and external conditions of the organization.
Efforts should be made to ensure that differences in pay for jobs are based on variations
in job requirements such as skill, responsibility, efforts and mental and physical
Wage and salary administration plans must always be consistent with overall
organizational plans and programmes.
Wage and Salary administration plans must always be in conformity with the social and
economic objectives of the country like attainment of equality in income distribution and
controlling inflation, etc.
These plans and programmes should be responsive to the changing local and national
Wage and salary plans should expedite and simplify administrative process.
Workers should be associated, as far as possible, in formulation and implementation of
wage policy.
An adequate data base and a proper organizational set up should be developed for
compensation determination and administration.
The general level of wages and salaries should be reasonably in line with that prevailing
in the labor market.
There should be a clearly established procedure for hearing and adjusting wage
complaints. This may be integrated with the regular grievance procedure, if it exists.
The workers should receive a guaranteed minimum wage to protect them against
conditions beyond their control.
 Prompt and correct payments to the employees should be ensured and arrears of payment
should not accumulate.

The wage and salary payments must fulfill a wide variety of human needs including the

need for self actualization. Wage policy and programme should be reviewed and revised periodically in conformity with changing needs. For revision of wages, a wage committee should also be preferred to the individual judgement however unbiased of a manager.

6 Discuss the problems of implementing incentive plan.

Merits or Wage Incentive Schemes

Such schemes are regarded as beneficial to both employers and workers.

They are accepted as a sound

technique for the achievement greater production on the ground that workers would work at their best if

they are offered monetary rewards for good performance

. If employers,


need for

a vigorous

supervision is reduced, and consequently there is a cut in the expenditure on supervision.

Types of Wage Incentive Plans

Wage Incentive plans may be discussed as (i) plans for blue-collar workers; (ii) plans for white- collar workers; and (iii) plans managerial personnel-because each of these categories of employees has separate and distinct needs and specific plans tailored for each may prove beneficial.

  • 1. Incentive Plans for Blue-Collar Workers: For Individuals:

    • (A) Short-Term Plans

These systems may be broadly classified into three categories:

  • (a) Systems under which the rate of extra incentive is in proportion to the extra output;

  • (b) Systems under which the extra incentive is proportionately at a lower rate than the increase in output; and

  • (c) Systems under which the rate of incentives is proportionately higher than the rate of increase in output.

Merits of Wage Incentive Plans:

  • (i) When well-designed and properly applied, payment by result may generally be relied upon to yield increased output, lower the cost of production and bring a higher income to the workers.

(ii) A works study associated with payment by result is a direct stimulus to workers to improve the organisation of work and to eliminate lost time and other waste.

(iii) Labour and total cost per unit of output can be estimated more accurately in advance.

(iv) Less direct supervision is needed to keep output up to a reasonable level.

  • (v) The confliction interests of employers and employees are unified. Increased efficiency and smooth working can therefore be promoted and sustained.

Demerits of Wage Incentive Plans:

  • (i) Quality tends to deteriorate unless there is a stricter system of checking and inspection.

(ii) Payment by result may lead to opposition or restriction on output when new machines and methods are proposed or introduced. This is because of the hear that the job may be restudied and earnings reduced,

(iii) When paid by result, workers and to regard their highest earnings as norms, and therefore, press for a considerable higher minimum wage.

(iv) The amount and cost of clerical work increases.

  • (v) There is a danger of disregarding safety regulations and thereby increasing the rate of accidents.

(vi) Some workers tend to over-work and thus undermine their health.


Jealousies may arise among workers because some are able to earn more than others or because fast workers are dissatisfied with the slower or older works in the group.


It is difficult to set piece or bonus rates accurately. If they are too low, workers may be under pressure to work too hard and become dissatisfied; and if too high, they, may slacker their

efforts to avoid a revision of rates.

A successful wage incentives plan should consist of the following key points:

  • The management should recognize that the effectiveness of an incentive depends on the total situation, which includes workers-management confidence, relations with the trade union, the quality of communication and of supervision and the traditions in an industry.

  • Management should not introduce an incentive system until it has taken action to ensure full understanding of what is involved. This may call for procedures for the participation of employees and negotiations with the trade union.

  • The management should avoid any action that may be interpreted as unfair. There must be proper machinery for handling grievances. The management should avoid actions that resemble ―rate cutting‖ because of the need to change methods and rates from time to time.

  • It is essential that the management pay in proportion to output, once this output has risen above that required amount guaranteed pay.

  • The management should train supervisors all the way down line so that foremen and department managers are able to deal with problems within their won departments.

  • Great care should be taken in setting up standards to avoid rates that are too loose or too tight.

7 Discuss the features of motivation.

Motivation is a state of mind. High motivation leads to high morale and greater production. A motivated employee gives his best to the organization. He stays loyal and committed to the organization. A sound motivation system in an organization should have the following features:

  • Superior performance should be reasonably rewarded and should be duly acknowledged.

  • If the performance is not consistently up to the mark, then the system must make provisions for penalties.

  • The employees must be dealt in a fair and just manner. The grievances and obstacles faced by them must be dealt instantly and fairly.

  • Carrot and stick approach should be implemented to motivate both efficient and inefficient employees. The employees should treat negative consequences (such as fear of punishment) as stick, an outside push and move away from it. They should take positive consequences (such as reward) as carrot, an inner pull and move towards it.

  • Performance appraisal system should be very effective.

  • Ensure flexibility in working arrangements.

  • A sound motivation system must be correlated to organizational goals. Thus, the individual/employee goals must be harmonized with the organizational goals.

  • The motivational system must be modified to the situation and to the organization.

  • A sound motivation system requires modifying the nature of individual‘s jobs. The jobs should be redesigned or restructured according to the requirement of situation. Any of the alternatives to job specialization - job rotation, job enlargement, job enrichment, etc. could be used.

  • The management approach should be participative. All the subordinates and employees should be involved in decision- making process.

  • The motivation system should involve monetary as well as non- monetary rewards. The monetary rewards should be correlated to performance. Performance should be based on the employees‘ action towards the goals, and not on the fame of employees.

  • ―Motivate yourself to motivate your employees‖ should be the managerial approach.

  • The managers must understand and identify the motivators for each employee.

  • Sound motivation system should encourage supportive supervision whereby the supervisors share their views and experiences with their subordinates, listen to the subordinates views, and assist the subordinates in performing the designated job.

Characteristics Or Features of Motivation

Some important features of motivation may be brought out as follows:

1. Personal and Internal Feeling

Motivation is a psychological phenomenon, which is generated within an individual in the form of an energetic force that drives him to behave or not to behave in certain ways. These are some environmental and other forces that trigger these drives.








A manager can use motivation to inspire not only his subordinates, but to motivate himself also.

For self-motivation, he has to take following steps

He should set a goal for himself and should not close sight of it. He should supplement his long term objectives with short-term goals. He should learn a challenging task every year. He should make his job a different one with a view to improving objectives for his position and increasing his productivity. He should develop an area of expertise by building on his strengths and developing his weaknesses into strengths. He should give himself the feedback and reward himself by celebrating his accomplishment.






Motivation is closely intertwined with behaviour. As a Behavioural concept, it directs human behaviour toward certain goals.









Positive motivation is also known as Carrot Approach and includes use of additional pays,

incentives, praise possibility of becoming a permanent employee etc. Negative motivation is also called Stick Approach and implies punishment, such as reprimands, threat of demotion, threat of termination, etc.









Motivation is necessary for successful achievement of goals. However, it is a complex process because different employees have different needs, their motives are varied and needs and motivates change from time to time. Moreover, motivation is partly logical and partly emotional. Further, people satisfy their needs in many different ways. Hence, the central problem of motivation is how to inspire such a typical group of individuals towards attainment of goals in a concerned manner.






Motivation is the result of interplay among three sets of different factors:

Influences operating within an individual, for example, his needs, tensions, motives, values, goals etc. Influences operating within the organisation for example, its structure, technology, physical facilities, various processes, the nature of job, advancement avenues etc. Forces operating in the external environment, for example, society is culture, norms, values, customs, government policy regarding the business of the enterprise etc.








Inducements from the side of the enterprise and contributions from the side of the employees.







Motivation refers to the drive and effort to satisfy a want or goal. Satisfaction refers to the contentment experienced when a want is fulfilled. In other words, motivation implies a drive toward an outcome and satisfaction is the outcome already experienced.

8 Explain the importance of keeping correct personnel records.

Significance of Records


A record is a piece of writing or a chart which provides ready information and which

preserves evidence for future reference or use.


The importance of records and reports for the management of an organisation cannot be over emphasized, for they enable it to get information with a view to taking timely decisions on issues pertaining to the different aspects or personnel management. The are needed:‖


To supply the information required by government agencies on the rate of accidents

, on large-

scale absenteesims or turnover, or on wage rates occurring or prevailing in an organisation;

(ii) To conduct research in the field of industrial relations;

(iii) To enable personnel manager to prepare training and development programmes;

(iv) To

review and revise pay scale

; and



keep and

maintain up-to-date data on leave, transfers, promotions, dismissals

, strikes



man days lost, expenditure incurred on employees benefits and services cases of

indiscipline, etc.


In the absence of reliable records and reports, the management would not be able to function; in fact, it would be paralyzed, for it would not know where the organization‘s weakness lies and what precautions to take to set matters right.


By the term records is meant the preservation of information in files and documents. They

are generally prepared and compiled from reports; and they are meant for long-term use. They contain, for the employer and the employee, information on job analysis, evaluation and description, and/or

recruitment, selection, test scores; on the results of physical examinations; on the interviewers‘ notations;

on employee training and development and periodical appraisals; on transfers, promotions, discharge

dismissals, lay-offs; on grievances and on the disciplinary action taken against employees; on wages, salaries, pensions, provident fund contributions, employee benefits-and-services programmes; safety and a prevention measures and procedures; labour disputes cost of the recruitment of employees and of training methods; scrap loss; the rate and extent of absenteeism and labor turnover; suggestion schemes and a host of other activities in which an organisation is involved.

We give below a specimen on an employee record maintained by a well-known organisation in India.

Essential of a Good Record

To be reliable and effective a record should be clear about the following :

  • The objectives for which it is maintained should be clearly and adequately stated.

  • It should be consistent with the requirements for which it is maintained and should be easily available.

  • Its upkeep and maintenance should not be costly. It should be kept under lock and key to ensure that it is not mislaid or pilfered, or tampered with.

  • It should be periodically reviewed and brought up to date.

  • It should be maintained in such a manner that the information it contains is easily accessible.

  • It should be easily identified and differentiated from another record.

  • The records of different kinds of information should be kept and maintained in separate files and dockets for ready reference.

  • Duplication of entries in different records should be avoided.

  • Some particular person should be entrusted with the re of maintaining records

  • A procedural manual should be maintained, detailing the procedure to be followed for maintaining and dealing with records.

PART B (4 15 = 60 marks)

Answer any FOUR questions.

9 Differentiate between Human Resource Management and Personal Management.

Many students of management and laypeople often hear the term HRM or Human Resource Management and wonder about the difference between HRM and the traditional term Personnel Management. In earlier times, the Personnel Manager of a factory or firm was the person in charge of ensuring employee welfare and interceding between the management and the employees. In recent times, the term has been replaced with HR manager. This article looks at the differences in usage and scope of functions as well as the underlying theory behind these

nomenclatures. In the section on introducing HRM, we briefly looked at the main differences. We shall look into them in more detail here.

Personnel Management

Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative


In this respect, personnel management encompasses the range of activities that are to do


managing the workforce rather than resources.





administrative in nature and the Personnel Manager‘s main job is to ensure that the needs of the

workforce as they pertain to their immediate concerns are taken care of. Further,



managers typically played the role of mediators between the management and the employees


hence there was always the feeling that personnel management was not in tune with the

objectives of the management.


Human Resource Management

With the advent of resource centric organizations in recent decades, it has become imperative to

put ―

people first
people first

‖ as well as secure management objectives of maximizing the ROI (Return on

Investment) on the resources. This has led to the development of the modern HRM function

which is primarily concerned with ensuring the fulfillment of management objectives and at the

same time ensuring that the needs of the resources are taken care of. In this way, HRM differs from personnel management not only in its broader scope but also in the way in which its

mission is defined.

HRM goes beyond the administrative tasks of personnel management

and encompasses a broad vision of how management would like the resources to contribute

to the success of the organization.


Personnel Management and HRM: A Paradigm Shift ?

Cynics might point to the fact that whatever term we use, it is finally ―about managing people‖.

The answer to this would be that the way in which people are managed says a lot about the

approach that the firm is taking

. For instance, traditional manufacturing units had personnel

managers whereas the services firms have HR managers

. While it is tempting to view

Personnel Management as outdated and HRM as modern, we have to recognize the fact that

each serves or served the purpose for which they were instituted. Personnel Management

was effective in the “smokestack” era and HRM is effective in the 21st century and this

definitely reflects a paradigm shift in the practice of managing people.


It is clear from the above paragraphs that HRM denotes a shift in focus and strategy and is

in tune with the needs of the modern organization


HRM concentrates on the planning,

monitoring and control aspects of resources whereas Personnel Management was largely

about mediating between the management and employees


Many experts view Personnel












. conclusion, the differences between these two terms have to be viewed through the prism of people management through the times and in context of the industry that is being studied.

  • 10 Explain the advantages of Job Analysis.

  • 11 Discuss the merits and demerits of merit-based promotion.

Merit Promotion Program

The underlying principle of the Merit Promotion Program is the identification, qualification evaluation, and selection of candidates made without regard to political, religious, labor organization affiliation, marital status, race, color, sex, national origin, non-disqualifying physical or mental handicap, or age and shall be based solely on job-related criteria in accordance with legitimate position requirements.

The Merit Promotion Program is directed toward:

Contributing to the accomplishment of mission goals by staffing positions with high-quality

employees Providing career opportunities for employees and ensuring that all employees are fully informed

of those opportunities Bringing to the attention of management high-quality employees who have the capacity to perform in more responsible assignments

Fostering and facilitating the mobility of employees in the interest of broadening their experiences and increasing their qualifications

Ensuring the maximum utilization of employees in positions for which they are best qualified

Ensuring that the skills, qualifications, achievements, and promotion potential of employees are

recognized and fairly considered in the staffing process Encouraging employees to improve their performance to develop their knowledge, skills, and abilities.

An organization seeking to promote its workers may choose to do so based on seniority to take advantage of the employees' experience with the organization and to reward them for their service. Another option is to promote based on merit, a measure of the employees' contributions based on performance. Each method offers potential advantages and disadvantages for the organization.

No Favoritism

A seniority-based promotion structure can eliminate the perception of favoritism. Employers typically won't have to worry about a newer worker coming in and quickly leapfrogging them to obtain a promotion simply because they are friends with an upper-level supervisor or because of the way they dress or that they are more effective at playing the game of corporate politics. Instead, workers have a sense that if they pay their dues, they will be rewarded at some point in the future.

Workplace Harmony

Promotion based on seniority can also help maintain a more harmonious workplace. Workers who know they need to put in the necessary time with the company before advancement opportunities present

themselves are less likely to resent those who attained promotion because they worked for the organization longer. This can eliminate the backstabbing often associated with merit-based programs where employees may attempt to present themselves in the most favorable manner possible, sometimes by attempting to make coworkers look incompetent.

Motivation Boost

A merit-based program, on the other hand, can provide motivation leading to increased productivity. Workers who recognize that the best performers are the ones who get ahead may put forth the extra effort they believe it takes to receive promotions. For instance, salespeople who realize that a sales manager position is awarded to the person with the highest sales numbers may strive to produce the desired results, generating additional revenue for the company in the process.

Reward for Ability

Workers possess varying levels of skills and abilities, and a merit-based program rewards those who may have the most to offer the organization in the long run. While tenured employees offer the benefit of greater experience, this does not necessarily equate with more ability. A less experienced worker possessing a greater flair for innovation or creativity may be more likely to generate ideas that help the company move forward in the future

12 Discuss the factors influencing wage policies.

Factors Influencing Wage and Salary Structure and Administration

The wage policies of different organizations vary somewhat. Marginal units pay the minimum necessary to attract the required number and kind of labour. Often, these units pay only the minimum wage rates required by labour legislation, and recruit marginal labor. At the other extreme, some units pay well above the going rtes in the labour market.

A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wage based upon differences in job contents. Besides the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are:

  • The organisation‘s ability to pay;

  • Supply and demand or labour;

  • The prevailing market rate;

  • The cost of living;

  • Living wage;

  • Productivity;

  • Trade Union‘s Bargaining power;

  • Job requirements;

  • Managerial attitudes; and

  • Psychological and Sociological factors

Principles of Wage & Salary Administration

The commonly suggested principles governing fixation of wage and salary are:

  • (i) There should be a definite plan to ensure that differences in pay for jobs are based upon variations in job requirements, such as skill, effort, responsibility or job or working conditions, and mental and physical requirements.

(ii) The general level of wage and salaries should be reasonably in fine with that prevailing in the labour market. The labor market criterion is most commonly used.

(iii) The plan should carefully distinguish between jobs and employees. A job carries a certain wage rate, and a person is assigned to fill it at that rate. Exceptions sometimes occur in vary high-level jobs in which the job-holder may make the ob large or small, depending upon his ability a contributions.

(iv) Equal pay for equal work, i.e., if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them.

  • (v) An equitable practice should be adopted for the recognition of individual differences in ability and contribution. For some units, this may take the form of rate ranges, with in-grade increases; in others, it may be a wage incentive plan; it still others, it may take the form of closely integrated sequences of job promotion.

(vi) There should be a clearly established procedure for hearing and adjusting wage complaints. This may be integrated with the regular grievance procedure, if it exists.


The employees and the trade union, if there is one, should be informed about the

procedure used to establish wage rates. Every employee should be informed of his own position, and of the wage and salary structure. Secrecy in wage matters should not be used as a cover-up for haphazard and unreasonable wage programme.


The wage should be sufficient to ensure for the worker and his family reasonable

standard of living. Workers should receive a guaranteed minimum wage to protect them against

conditions beyond their control.

(ix) The wage and salary structure should be flexible to that changing conditions can be easily met.

  • (x) Prompt and correct payments of the dues of the employees must be ensured and arrears of payment should not accumulate.

(xi) The wage and salary payments must fulfill a wide variety of human needs, including the need for self-actualization. It has been recognized that ―money is the only from of incentive which is wholly negotiable, appealing to the widest possible of seekers…. Monetary payments often act as motivators and satisfiers interdependently of other job factors.‖

13 Explain the different sources of recruitment.

Sources of Recruitment

The different sources of recruitment are classified into two categories, viz.,

  • 1. Internal : sources of recruitment are from within the organisation.

  • 2. External : sources of recruitment are from outside the organisation.

Internal Sources of Recruitment

The internal sources of recruitment are:-

  • 1. Promotions : Promotion means to give a higher position, status, salary and responsibility to the employee. So, the vacancy can be filled by promoting a suitable candidate from the same organisation.

  • 2. Transfers : Transfer means a change in the place of employment without any change in the position, status, salary and responsibility of the employee. So, the vacancy can be filled by transferring a suitable candidate from the same organisation.

  • 3. Internal Advertisements : Here, the vacancy is advertised within the organisation. The existing employees are asked to apply for the vacancy. So, recruitment is done from within the organisation.

  • 4. Retired Managers : Sometimes, retired managers may be recalled for a short period. This is done when the organisation cannot find a suitable candidate.

  • 5. Recall from Long Leave : The organisation may recall a manager who has gone on a long leave. This is done when the organisation faces a problem which can only be solved by that particular manager. After he solves the problem, his leave is extended.

Merits of Internal Sources

The benefits / advantages / merits of using internal sources of recruitment:-

  • 1. It is time saving, economical, simple and reliable.

  • 2. There is no need of induction training because the candidate already knows everything about the organisation, the work, the employee, the rules and regulations, etc.

  • 3. It motivates the employees of work hard in order to get higher jobs in the same organisation.

  • 4. It increases the morale of the employees and it improves the relations in the organisation.

  • 5. It reduce executive turnover.

Demerits of Internal Sources

The limitations / demerits of using internal sources of recruitment:-

  • 1. It prevents new blood from entering the organisation. New blood brings innovative ideas, fresh thinking and dynamism into the organisation.

  • 2. It has limited scope because it is not possible to fill up all types of vacancies from within the organisation.

  • 3. The position of the person who is promoted or transferred will be vacant.

  • 4. There may be bias or partiality in promoting or transferring persons from within the organisation.

  • 5. Those who are not promoted will be unhappy.

  • 6. The right person may be promoted or transferred only if proper confidential reports of all employees are maintained. This involves a lot of time, money and energy.

External Sources of Recruitment

The external sources of recruitment are:-

  • 1. Management Consultants : Management consultants are used for selecting higher-level staff. They act as a representative of the employer. They make all the necessary arrangements for recruitment and selection. In return for their services, they take a service charge or commission.

  • 2. Public Advertisements : The Personnel department of a company advertises the vacancy in newspapers, the internet, etc. This advertisement gives information about the company, the job and the required qualities of the candidate. It invites applications from suitable candidates. This source is the most popular source of recruitment. This is because it gives a very wide choice. However, it is very costly and time consuming.

  • 3. Campus Recruitment : The organisation conducts interviews in the campuses of Management institutes and Engineering Colleges. Final year students, who're soon to get graduate, are interviewed. Suitable candidates are selected by the organisation based on their academic record, communication skills, intelligence, etc. This source is used for recruiting qualified, trained but inexperienced candidates.

  • 4. Recommendations : The organisation may also recruit candidates based on the recommendations received from existing managers or from sister companies.

  • 5. Deputation Personnel : The organisation may also recruit candidates who are sent on deputation by the Government or Financial institutions or by holding or subsidiary companies.

Advantages of External Sources

The benefits / merits / advantages of using external sources of recruitment:-

  • 1. It encourages young blood with new ideas to enter the organisation.

  • 2. It offers wide scope for selection. This is because a large number of suitable candidates will come for the selection process.

  • 3. There are less chances of bias or partiality.

  • 4. Here there is no need to maintain confidential records.

Limitations of External Sources

The demerits / limitations of using external sources of recruitment:-

  • 1. It is very costly. This is because advertisements, test, medical examination etc., has to be conducted.

  • 2. It is very time consuming. This is because the selection process is very lengthy.

  • 3. It may not develop loyalty among the existing managers.

  • 4. The existing managers may leave the organisation if outsiders are given higher post.

14 Discuss Maslow’s theory of motivation.

Maslow's Theory of Motivation - Hierarchy of Needs

In 1943, Dr. Abraham Maslow 's article "A Theory of Human Motivation" appeared in Psychological Review, which were further expanded upon in his book: Toward a Psychology of Being In this article, Abraham H. Maslow attempted to formulate a needs-based framework of human motivation and based upon his clinical experiences with people, rather than as did the prior psychology theories of his day from authors such as Freud and B.F. Skinner, which were largely theoretical or based upon animal behavior. From this theory of motivation, modern leaders and executive managers find means of motivation for the purposes of employee and workforce management. Abraham Maslow's book Motivation and Personality (1954), formally introduced the Hierarchy of Needs.

The basis of Maslow's motivation theory is that human beings are motivated by unsatisfied needs, and that certain lower factors need to be satisfied before higher needs can be satisfied. According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a person can act unselfishly. He called these needs "deficiency needs." As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick or act evilly.

As a result, for adequate workplace motivation, it is important that leadership understands the needs active for individual employee motivation. In this manner, Maslow's model indicates that fundamental, lower-order needs like safety and physiological requirements have to be satisfied in order to pursue higher-level motivators along the lines of self-fulfillment. As depicted in the following hierarchical diagram, sometimes called 'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle', after a need is satisfied, it stops acting as a motivator and the next need one rank higher starts to motivate as it attain psychological precedence.


Self-actualization is the summit of Maslow's motivation theory. It is about the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow.

Self-actualized people tend to have motivators such as:





Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Esteem Needs

After a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem needs can be categorized as external motivators and internal motivators.

Internally motivating esteem needs are those such as self-esteem, accomplishment, and self respect. External esteem needs are those such as reputation and recognition.

Some examples of esteem needs are:

Recognition (external motivator)

Attention (external motivator)

Social Status (external motivator)

Accomplishment (internal motivator)

Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteem needs:

the need for aesthetics and knowledge.

Social Needs

Once a person has met the lower level physiological and safety needs, higher level motivators awaken. The first level of higher level needs are social needs. Social needs are those related to interaction with others and may include:


Belonging to a group

Giving and receiving love

Safety Needs

Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by:

Living in a safe area

Medical insurance

Job security

Financial reserves

According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.

Physiological Needs

Physiological needs are those required to sustain life, such as:





According to this theory, if these fundamental needs are not satisfied, then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.

Applying Maslow's Needs Hierarchy - Business Management Implications

If Maslow's theory is true, there are some very important leadership implications to enhance workplace motivation, and you don't need a masters in applied psychology, for it to be evident. There are employee motivation opportunities by motivating each employee through their style of management, compensation plans, role definition, and company activities.

Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life's essentials. Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats. Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics. Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated. Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.

Remember, everyone is not motivated by same needs. At various points in their lives and careers, various employees will be motivated by completely different needs. It is imperative that you recognize each employee's needs currently being pursued. In order to motivate their employees, leadership must be understand the current level of needs at which the employee finds themselves, and leverage needs for workplace motivation.

Maslow's Theory - Limitations and Criticism

Though Maslow's hierarchy makes sense intuitively, little evidence supports its strict hierarchy. Actually, recent research challenges the order that the needs are imposed by Maslow's pyramid. As an example, in some cultures, social needs are placed more fundamentally than any others. Further, Maslow's hierarchy fails to explain the "starving artist" scenario, in which the aesthetic neglects their physical needs to pursuit of aesthetic or spiritual goals. Additionally, little

evidence suggests that people satisfy exclusively one motivating need at a time, other than situations where needs conflict.

While scientific support fails to reinforce Maslow's hierarchy, his thery is very popular, being the introductory motivation theory for many students and managers, worldwide. To handle a number of the issues of present in the Needs Hierarchy, Clayton Alderfer devised the ERG theory, a consistent needs-based model that aligns more accurately with scientific research.

15 Explain the specific areas requiring examination under Human Resource Audit.


An audit is, properly speaking, an examination and verification of accounts and records. Personnel auditing refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of personnel management. In other words, personnel audit or periodical reviews of the effectiveness of a management o Personnel Records/Reports are concerned with:

  • (a) The measurement of the effectiveness of personnel programmes and activities; and

  • (b) The determination of what measurement.

should or should not be done in the future as a result of such

The effectiveness of a personnel programme, like that of personnel research, is dependent upon available

information, and its scope is as wide as the field of personnel management. ―The performance of people is

a complex product of personnel interest, qualifications, commitment and expectations on the one hand,

and of the employment environment (including working assignments, working condition, supervisions, leader ship, opportunity and challenge) on the other. Because manager-employee relationships, from recruitment to retirement, are inter-related to compose the total system, no part of that system can be


Objectives of Personnel Audit

The objectives of a personnel audit are:

  • 1. To review the whole system of management programmes in which a management develops, allocates and supervises human resources in an organisation with a view to determining the effectiveness of these programmes.

  • 2. To seek explanation and information; that is, to get answers to such questions as: ―Why did it happen?‖ and ―What happened?‖

  • 3. To evaluate the extent to which line managers have implemented the policies which have already been initiated; and

  • 4. To evaluate the personnel staff and employees.

According to Gray, ―the primary purpose of personnel audit is to know how the various units are

functioning and how they have been able to meet the policies and guidelines which were agreed upon;

and to assist the rest of the organisation by identifying the gap between objectives and results, for the end-

product of an evaluation should be to formulate plans for corrections or adjustments.‖

Importance of Personnel Audit

In modern times, personnel and industrial relations audits have been widely accepted as tools with which managers can control the programmes and practices of the personnel and industrials relations departments. The importance of a personnel audit has increased in recent years because of the following reasons.

  • A change in managerial philosophy and theory, as a result of which a management now feels that the employees‘ participation in the activities of an organizations, and their identification with it, has a tremendous influence on the working of that organisation.

  • The changing role of the government, which intervenes more often and more extensively now, to control manpower management by an organisation with a view to protecting the interests of the employees, providing them with better working conditions and ensuring their economic security.

  • The increasing role played by trade unions and their strength, as a result of which they often question managerial competence in industrial relations.

  • The rising wages, changes in the skills of technical and professional workers, and the increasing expenditure incurred on the industrial relations department these are the factors which have influenced and encouraged the trend in favour of a personnel audit.

Need for Personnel Audit

According to Yoder, the need for personnel audit is largely influenced by several conditions, these are:

some of

  • The Number of Employees: Very small units, because of the very small number of persons they employ, require comparatively little in the way of a formal audit.

  • Organizational Structure: Continuing feedback is facilitated if an organisation has a personnel department.

  • Communication and Feedback: An effective two-way communications system often reduces the need for a formal audit.

  • Location and Dispersion: The need for a formal audit is directly related, to the number of isolated plants.

  • Status of an industrial Relations Manager: If he participates in top management plans, reports, discussions and decisions, the need for a formal audit may be less frequently felt.

  • Administrative Style the greater the delegation of authority and decentralization of power, the greater the value of a regular and formal audit.

Scope of Personnel Audit

The scope of a personnel audit is very wide. It represents a ―whole man‖ approach; that is, it assumes that the management of human resources involves much more than the practice of recruiting, hiring, retaining and firing employees. it examines the concept of ―people management‖ by supervisor at all levels. In the words of the National Industries Conference Board of the United States, ―the top management is

interested in auditing all the programmes relating to employees; regard less of where they originate, or the channels through which they are administered.‖

The field of personnel audit includes:

  • Job analysis;

  • Recruitment;

  • Testing;

  • Selection;

  • Training;

  • Management development;

  • Promotions and transfers;

  • Rating;

  • Labour relations;

  • Morale development;

  • Employee benefit and services;

  • Employee communication

  • Employee counseling

  • Wage and salary administration

  • Collective Bargaining

  • Personal Management, Industrial Relations and research

Records to be Used

The main records and statistics used in a personnel audit are:

  • (a) Time standards

  • (b) Cost records

  • (c) Test scores;

  • (d) Training scores

  • (e) Interview records;

  • (f) Work stoppages;

  • (g) Medical reports;

  • (h) Accident reports;

  • (i) Grievance reports;

  • (j) Turnover reports;

  • (k) Unit labor costs; and

  • (l) Payroll data.

In other words, both quantitative and qualitative yardsticks should be used for purposes of evaluation.

Monappa and Saiyadain provide a number of yardsticks and indices, which are: ―average in the levels of employee turnover or absenteeism; cost figures for each major activity or function; accident frequencies; grievances; suggestions; internal data indicators – wage and salary surveys, employees‘ state insurance scheme stabilities, productivity indications for certain jobs and/or machines, staffing and manning tables,

job analysis and descriptions; and evaluation data regarding instruments.‖

Methods of Analysis

The methods for analysis data and information are:

  • Comparison of various time periods;

  • Comparisons between departments and other companies;

  • Trend lines, frequency distributions and statistical correlations;

  • Ratio analysis; for example, labour cost per unit of output;

  • Classification of data by kinds of employees, products and departments;

  • Graphical is pictorial displays,

Frequency and Types of Audit

It is a common practice to have an annual evaluation or audit. At the end of each calendar or fiscal year, a report is presented, covering statistical information on the activities performed, the results achieved, the costs and expenditure involved, a d comparisons of objectives and accomplishments. By a perusal of this report a great deal of useful information can be had about personnel activities.

In some organizations, however, this personnel audit is conducted periodically, generally in accordance with the needs of each organisatoin. For example, attitude or morale surveys on particular

subjects or topics may be conducted, or special reports may be prepared on such issues as grievances, the working or seniority rules of the effects of overtime practices and collective bargaining agreements.

Two practices are generally followed while conducting a personnel audit. In some cases, the audit is conducted by those employed in the organisatoin itself-generally by auditors or accounts. In other cases, the services of outside experts are engaged. The former is known as internal audit, while the latter is designated external audit.

The advantages of having an outside auditor are that:

  • (a) He has a background of knowledge of what other are doing in similar situations;

  • (b) He has a professional attitude toward his work; and

  • (c) He is objective in that he personally will not become a party to recommended changes.

What appointing an outside auditor certain conditions should be kept in mind regarding his work;

  • (i) He cannot work miracles. He can diagnose ills and recommended treatment, but the patient must provide the will to get well.

(ii) He must receive top management‘s support.

(iii) He cannot and should not relieve management of its responsibility for making the decisions. He can recommended, but the acceptance of his recommendations rests with management.

The Audit Report

The report should invariably be submitted, within a reasonable time, after the audit work is over. It should avoid the journalistic style; be based solely on the findings; be presented in a factual manner that is readily available for future reference; make use of graphic techniques where appropriate; and not be any longer than is necessary.

The following items should be contained in the report:

  • 1. Table of Contents.

  • 2. Summary and conclusion, in which the entire report is summarized for the top executives.

  • 3. Preface giving a brief statement of the objectives

  • 4. The report proper, in which a major dividsion is covered as a special section. Each section should be complete, and should contain as many supporting data as are practical without making it too voluminous. Other data should be included in the appendix.

  • 5. Summary: this is more complete than summary and conclusions at the beginning of the Report.

  • 6. Appendix. This includes supporting data that would be too voluminous to appear in the body of the Report.

  • 7. It should be signed by all members making the audit.

Certain aspects of an audit report may be made available to the employees/Other phases of the audit may be appropriate to give only to top management.


Bring out the characteristics of Human Resource Management.

Human resources may be defined as the total knowledge, skills, creative abilities, talents and

aptitudes of an organization's workforce, as well as the values, attitudes, approaches and beliefs of

the individuals involved in the affairs of the organization

. It is the sum total or aggregate of inherent

abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons

employed in the organization.

The human resources are multidimensional in nature. From the national point of view, human resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.

Human Resource Management: Defined

Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programmes relating to human resources to optimize their contribution towards the realization of organizational objectives.

In other words, HRM is concerned with getting better results with the collaboration of people. It is an integral but distinctive part of management, concerned with people at work and their relationships within the enterprise. HRM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization.

Human Resource Management: Evolution

The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the employee's productivity. Recent decades

have focused on increased concern for the

quality of working life, total quality management and

worker's participation in management

. These three phases may be termed as welfare, development

and empowerment.

Human Resource Management: Nature

Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include:

• It is pervasive in nature as it is present in all enterprises.

• Its focus is on results rather than on rules.

• It tries to help employees develop their potential fully.

• It encourages employees to give their best to the organization.

• It is all about people at work, both as individuals and groups.

• It tries to put people on assigned jobs in order to produce good results.

• It helps an organization meet its goals in the future by providing for competent and well-motivated employees.

It tries


build and maintain cordial relations between people

working at

various levels in the



• It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

Human Resource Management: Scope

The scope of HRM is very wide:

  • 1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement,

transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives,

productivity etc.

  • 2. Welfare aspect-It deals with working conditions and amenities such as canteens, crèches, rest and

lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

  • 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective

bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Human Resource Management: Beliefs

The Human Resource Management philosophy is based on the following beliefs:

• Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent.

• A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential

for developing human resource.




planned and monitored in ways that are beneficial both to the individuals and the



• Employees feel committed to their work and the organization, if the organization perpetuates a feeling

of belongingness.


• Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs.

• Employee commitment is increased with the opportunity to dis¬cover and use one's capabilities and

potential in one's work.

• It is every manager's responsibility to ensure the development and utilisation of the capabilities of


Human Resource Management: Objectives

• To help the organization reach its goals.

• To ensure effective utilization and maximum development of human resources.

• To ensure respect for human beings. To identify and satisfy the needs of individuals.

• To ensure reconciliation of individual goals with those of the organization.

• To achieve and maintain high morale among employees.

• To provide the organization with well-trained and well-motivated employees.

• To increase to the fullest the employee's job satisfaction and self-actualization.

• To develop and maintain a quality of work life.

• To be ethically and socially responsive to the needs of society.

• To develop overall personality of each employee in its multidimensional aspect.

• To enhance employee's capabilities to perform the present job.

• To equip the employees with precision and clarity in trans¬action of business.

• To inculcate the sense of team spirit, team work and inter-team collaboration.

Human Resource Management: Functions

In order to achieve the above objectives, Human Resource Management undertakes the following activities:

  • 1. Human resource or manpower planning.

  • 2. Recruitment, selection and placement of personnel.

  • 3. Training and development of employees.


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 organization

    • 14. Potential Appraisal. Feedback Counseling.

    • 15. Role Analysis for job occupants.

    • 16. Job Rotation.

    • 17. Quality Circle, Organization development and Quality of Working Life.

Human Resource Management: Major Influencing Factors

In the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy:

• Size of the workforce.

• Rising employees' expectations

• Drastic changes in the technology as well as Life-style changes.

• Composition of workforce. New skills required.

• Environmental challenges.

• Lean and mean organizations.

• Impact of new economic policy. Political ideology of the Govern¬ment.

• Downsizing and rightsizing of the organizations.

• Culture prevailing in the organization etc.

Human Resource Management: Futuristic Vision

On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision:

  • 1. There should be a properly defined recruitment policy in the organization that should give its focus on

professional aspect and merit based selection.

  • 2. In every decision-making process there should be given proper weightage to the aspect that

employees are involved wherever possible

. It will ultimately lead to sense of team spirit, team-work

and inter-team collaboration.

  • 3. Opportunity and comprehensive framework should be provided for full expression of employees'

talents and manifest potentialities.

  • 4. Networking skills of the organizations should be developed internally and externally as well as

horizontally and vertically.

  • 5. For performance appraisal of the employee’s emphasis should be given to 360 degree feedback which

is based on the review by superiors, peers, subordinates as well as self-review.

  • 6. 360 degree feedback will further lead to increased focus on customer services, creating of highly

involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold.

  • 7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all

levels; it will conform to customer's needs and expectations; it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization.

  • 8. There should be focus on job rotation so that vision and knowledge of the employees are broadened

as well as potentialities of the employees are increased for future job prospects.

  • 9. For proper utilization of manpower in the organization the concept of six sigma of improving

productivity should be intermingled in the HRM strategy.

10. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account.

11. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning.

To conclude Human Resource Management should be linked with strategic goals and objectives in

order to improve business performance and develop organizational cultures that foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and objectives should be

based on


3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by

  • 1. Differentiate between Human Resource Management and Personnel Management.

Although Human resource management and Personnel management are subdivisions of management, both are entirely different areas. Human resource management is the intentional and articulate approach to the management of an organization‘s most treasured assets - the employees who independently and cooperatively contribute to the accomplishment of the objectives of the business establishments. However, Personnel management deals with finding, using and maintaining a contented workforce. It is a noteworthy part of management concerned with employees at work and with their connection within the organization.

Many students of management and laypeople often hear the term HRM or Human Resource Management and wonder about the difference between HRM and the traditional term Personnel Management. In earlier times, the Personnel Manager of a factory or firm was the person in charge of ensuring employee welfare and interceding between the management and the employees. In recent times, the term has been replaced with HR manager. This article looks at the differences in usage and scope of functions as well as the underlying theory behind these nomenclatures. In the section on introducing HRM, we briefly looked at the main differences. We shall look into them in more detail here.

Personnel Management

Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources. Personnel Management is more

administrative in nature and the Personnel Manager‘s main job is to ensure that the needs of the

workforce as they pertain to their immediate concerns are taken care of. Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management.

Human Resource Management

With the advent of resource centric organizations in recent decades, it has become imperative to

put ―people first‖ as well as secure management objectives of maximizing the ROI (Return on

Investment) on the resources. This has led to the development of the modern HRM function which is primarily concerned with ensuring the fulfillment of management objectives and at the same time ensuring that the needs of the resources are taken care of. In this way, HRM differs from personnel management not only in its broader scope but also in the way in which its mission is defined. HRM goes beyond the administrative tasks of personnel management and

encompasses a broad vision of how management would like the resources to contribute to the success of the organization.

Personnel Management and HRM: A Paradigm Shift ?

Cynics might point to the fact that whatever term we use, it is finally ―about managing people‖. The answer to this would be that the way in which people are managed says a lot about the approach that the firm is taking. For instance, traditional manufacturing units had personnel managers whereas the services firms have HR managers. While it is tempting to view Personnel Management as archaic and HRM as modern, we have to recognize the fact that each serves or served the purpose for which they were instituted. Personnel Management was effective in the

―smokestack‖ era and HRM is effective in the 21st century and this definitely reflects a paradigm

shift in the practice of managing people.

Key differentiators between Human Resource Management and Personnel Management

Human Resource Management assists better litheness while Personnel management set rules and

regulations within every organization.

In a management sense, personnel management comprises

of measures, reliability and control while HRM management actions take account of business

requirements, flexibility and dedication.

Human Resource Management treats public as a

resource or as an asset, which should be issued for the benefit of an organization whereas

Personnel management is carried out in accordance with the welfare of organization. The former is an integral part of the overall execution of the affairs of a company whereas the latter is

an independent task of an organization.


It is clear from the above paragraphs that HRM denotes a shift in focus and strategy and is in tune with the needs of the modern organization. HRM concentrates on the planning, monitoring and control aspects of resources whereas Personnel Management was largely about mediating between the management and employees. Many experts view Personnel Management as being workforce centered whereas HRM is resource centered. In conclusion, the differences between these two terms have to be viewed through the prism of people management through the times and in context of the industry that is being studied.


What are the steps to be followed in Human Resource Planning?

Designing the Management System

The First step in human resource planning is to ensure that a proper system is in place to

handle the process.

Designing a management system to deal with the corporate goals and


This will be designed based on determining the workload needed to achieve

these goals. The overall aim is to ensure the Human Resource systems are being managed in line with the main objectives and goals of the organization as a whole. The system is in charge of human resource plans, policies, procedures and best practices. For example, the system should track emerging human resource management trends, such as

outsourcing certain non-core functions, adopting flexible work practices and the increased use of information technology, and, if appropriate, implement them ..

Environmental Analysis

The next step in the human resource planning process is to understand the context of human

resource management.

and potential needs.

Studying the current workforce and assessing its effectiveness

For instance, the Human Resource department should determine

whether roles need to be filled in specific departments in order to meet working quotas or targets. It is then the responsibility of the department to advertise the role and getting it filled within a set period of time. This will also include writing up job descriptions and specifications suitable to the role. Human resource managers should understand both internal and external environments. Data on external environments includes the following: the general status of the economy, industry, technology and competition; labor market regulations and trends; unemployment rate; skills available; and the age and sex distribution of the labor force. Internal data required include short- and long-term organizational plans and strategies

and the current status of the organization's human resources.

Forecasting Human Resource Demand

Looking at the current workforce and making forecasts on any future operational













. By looking at the types of skills needed to fill the roles, the organization will be

able to get the best suited candidates for specific jobs. This trend forecasting can be

achieved by looking at past experiences and looking at other case studies within their sector. The aim of forecasting is to determine the number and type of employees needed in the future. Forecasting should consider the past and the present requirements as well as

future organizational directions.

Bottom-up forecasting is one of the methods used to

estimate future human resource needs by gathering human resource needs of various

organizational units.


Analyzing Supply

Organizations can hire personnel from internal and external sources. The skill inventories method is one of the techniques used to keep track of internal supply. Skill inventories are manual or computerized systems that keep records of employee experience, education and special skills. A forecast of the supply of employees projected to join the organization from outside sources, given current recruitment activities, is also necessary. Making improvements to plans that are already in place. By taking employee feedback on board, make changes to make all processes more accessible and user friendly. Also make

sure staff members are aware of their rights when it comes to maternity leave or booking annual leave.

Reconciliation and Planning

The final step in human resource planning is developing action plans based on the gathered data, analysis and available alternatives. The key issue is that the plans should be acceptable to both top management and employees. Plans should be prioritized and their key players and barriers to success identified. Some of these plans include employee utilization plan, appraisal plan, training and management development plan and human resource supply plan. Making changes and improvements to procedures such as reporting grievances within the workplace. Maintaining confidentiality in all cases and ensuring employees are treated fairly and with the utmost respect at all times. Make sure there are effective action plans in place to deal with all eventualities that could occur within the organization.

  • 3. Write short notes on :



Placement is concerned with the task of placing an employee in a job for which he is best fitted, keeping in view the job requirements, his qualifications and personality needs.

Placement is a process of assigning a specific job to each of the selected candidates. It involves assigning a specific rank and responsibility to an individual. It implies matching the requirements of a job with the qualifications of the candidate.

Significance of placement

The significances of placement are as follows: -

It improves employee morale

It helps in reducing employee turnover.

It helps in reducing absenteeism.

It helps in reducing accident rates.

It avoids misfit between the candidate and the job.

It helps the candidate to work as per the predetermined objectives of the organization.

(b) Induction.

Once an employee is selected and placed on an appropriate job, the process of familiarizing him with the job and the organization is known as induction.

Induction is the process of receiving and welcoming an employee when he first joins the company and giving him basic information he needs to settle down quickly and happily and starts work.

objectives of induction

Induction is designed to achieve following objectives:

To help the new comer to overcome his shyness and overcome his shyness nervousness in meeting new people in a new environment. To give new comer necessary information such as location of a café, rest period etc. To build new employee confidence in the organization. It helps in reducing labor turnover and absenteeism. It reduces confusion and develops healthy relations in the organization. To ensure that the new comer do not form false impression and negative attitude towards the organization. To develop among the new comer a sense of belonging and loyalty to the organization.

advantages of formal induction:

The advantages of formal induction are:

Induction helps to build up a two-way channel of communication between management

and workers. Proper induction facilitates informal relation and team work among employee.

Effective induction helps to integrate the new employee into the organization and to

develop a sense of belonging. Induction helps to develop good relation.

A formal induction programme proves that the company is taking interest in getting him

off to good start. Proper induction reduces employee grievances, absenteeism and labor turnover.

Induction is helpful in supplying information concerning the organization, the job and employee welfare facilities.

Contents of induction programme:

A formal induction programme should provide following information:

Brief history and operations of the company.

The company‘s organization structure.

Policies and procedure of the company.

Products and services of the company.

Location of department and employee facilities.

Safety measures.

Grievances procedures.

Benefits and services of employee.

Standing orders and disciplinary procedures.

Opportunities for training, promotions, transfer etc.

Suggestion schemes.

Rules and regulations.

  • 4. What are the essentials of a satisfactory wage system?

The system of wage payment is the method adopted by manufacturing concerns to remunerate workers. It is the way of giving financial compensation to the workers for the time and effort invested by them in converting materials into finished products. It indicates the basis of making

payment to the workers, which may be either on time basis or output basis. The selection of the system depends on the type and nature of the concern and its products. The wage payment

systems can be








  • 1. Piece rate system

  • 2. Time rate system

Importance Of Wage Payment System

The amount of wages paid to the workers is one of the major elements of cost. It has a great bearing on the cost of production and profitability of the concern. Hence, every concern is required to adopt a fair system of wage payment.

The importance of wage payment system can be summarized as follows:

Wage payment system facilitates the preparation of wage plan for future.

Wage payment system helps to determine the cost of production and the profitability of

the organization. Wage payment system determines the amount of earning of the workers and their living

standards. Wage payment system affects the interest and attitude of the workers.

Wage payment system determines the level of satisfaction of the workers and affects the rate of labor turnover. Wage payment system helps in recruiting skilled, experienced and trained workers. Wage payment system helps to increase the productivity and goodwill of the organization.

Essential Characteristics Of A Good Wage Payment System

A sound system of wage payment is one that satisfies employer and employee by fulfilling following criteria.

Wage Payment System should be simple and understood by all

Wage payment system should be fair and justifiable to the workers and organization.

Wage payment system should help in maximizing workers' satisfaction and minimizing labor turnover.


payment system should assure minimum guaranteed wages to all workers



Wage payment system

should assure equal pay for equal work.


Wage payment system should provide more wages to efficient and skilled workers.

Wage payment system

should follow government policy and trade union's norms


Wage payment system should be simple and understandable to all the workers.

Wage payment system should help in improving performance and productivity of the workers. Wage payment system should be flexible enough to suit the needs of the organization.

  • 5. State the principles of Labour Welfare.

Labour Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Labour Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The Labour welfare measures need not be in monetary terms only but in any kind/forms. Labour welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against

disease, accident and unemployment for the workers and their families.

Labour welfare


entails all those activities of employer, which are directed towards providing the employees

with certain facilities and services in addition to wages or salaries.


Labor welfare has the following objectives:

  • 1. To provide better life and health to the workers

  • 2. To make the workers happy and satisfied

  • 3. To relieve workers from industrial fatigue and to improve intellectual, cultural and

material conditions of living of the workers.

The basic principles of labour welfare measures are as follows:

  • 1. Labour welfare includes various facilities, services and amenities provided to workers for

improving their health, efficiency, economic betterment and social status.

  • 2. Welfare measures are in addition to regular wages and other economic benefits available

to workers due to legal provisions and collective bargaining

  • 3. Labour welfare schemes are flexible and ever-changing. New welfare measures are added

to the existing ones from time to time.

  • 4. Welfare measures may be introduced by the employers, government, employees or by

any social or charitable agency.

  • 5. The purpose of labour welfare is to bring about the development of the whole personality

of the workers to make a better workforce. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living.

The important benefits of welfare measures can be summarized as follows:

They provide better physical and mental health to workers and thus promote a healthy work environment· Facilities like housing schemes, medical benefits, and education and

recreation facilities for workers’ families help in raising their standards of living. This makes

workers to pay more attention towards work and thus increases their productivity.·

Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.·

Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.·The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies. Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non

statutory schemes differ from organization to organization and from industry to industry.


The statutory welfare schemes include the following provisions:

  • 1. Drinking Water: At all the working places safe hygienic drinking water should be


  • 2. Facilities for sitting: In every organization, especially factories, suitable seating

arrangements are to be provided.

  • 3. First aid appliances: First aid appliances are to be provided and should be readily

assessable so that in case of any minor accident initial medication can be provided to the needed employee.

  • 4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in

the office and factory premises and are also to be maintained in a neat and clean condition.

  • 5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to

provide hygienic and nutritious food to the employees.

  • 6. Spittoons: In every work place, such as ware houses, store places, in the dock area and

office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.

  • 7. Lighting: Proper and sufficient lights are to be provided for employees so that they can

work safely during the night shifts.

  • 8. Washing places: Adequate washing places such as bathrooms, wash basins with tap

and tap on the stand pipe are provided in the port area in the vicinity of the work places.

  • 9. Changing rooms: Adequate changing rooms are to be provided for workers to change

their cloth in the factory area and office premises. Adequate lockers are also provided to the

workers to keep their clothes and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.


Many non statutory welfare schemes may include the following schemes:

  • 1. Personal Health Care (Regular medical check-ups): Some of the companies provide the

facility for extensive health check-up

employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs

  • 3. Employee Assistance Programs: Various assistant programs are arranged like

external counseling service so that employees or members of their immediate family can

get counseling on various matters.

  • 4. Harassment Policy: To protect an employee from harassments of any kind, guidelines

are provided for proper action and also for protecting the aggrieved employee.

  • 5. Maternity & Adoption Leave Employees can avail maternity or adoption leaves.

Paternity leave policies have also been introduced by various companies.

  • 6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance

coverage of employees for expenses related to hospitalization due to illness, disease or

injury or pregnancy.

  • 7. Employee Referral Scheme: In several companies employee referral scheme is

implemented to encourage employees to refer friends and relatives for employment in the organization.

  • 6. Mention the need and importance of Personnel Research.

Objectives of Personnel Research

Research is a multipurpose tool which is used to help solve a variety of organizational problems. The concept of research can be applied to all organizational studies, be they large or small, descriptive or analytical, major or minor, human or non-human, broad or narrow in perspective, dimension and scope.‖ In fact, it is useful for everyone who is concerned with personnel problems labour, management, the general public, government agencies and consumers.

Research is immensely valuable in developing more effective personnel practices. Surveys and analysis of the statistics of a company‘s in functioning, for example, are so vital to the effective operation of an enterprise that they are conducted almost as a matter of course. Research, moreover, provides the most efficient relationships which otherwise might never have been observed or verified, or which sometimes are discovered after decades.

More specifically, research is related to the following aspects of personnel management, human relations and labour management relations:

  • To measure and evaluate present conditions;

  • To predict future conditions, events and behavioral patterns;

  • To evaluate the effects and results of current policies, programmes and practices;

  • To provide an objective basis for a revision of current policies, programmes and practices;

  • To appraise proposed policies, programmes and activities;

  • To keep the management abreast of its competitors by replacing old products by new products, old techniques by new techniques and old organizational practices by new organizational practices.

  • To discover ways and means of strengthening the abilities and attitudes of at a good or a high level and on a continuing basis.

It is obvious then that the need for personnel research stems for the requirements of finding the most efficient manner of handling people related employment concerns Personnel research is the means of bringing about the end stage of improved performances its fundamental purpose is to improve the philosophy and practice of personnel administration and manpower management.

  • 7. What are the non-financial Incentives? Explain.

    • 1. Non-monetary incentives- Besides the monetary incentives, there are certain non-financial incentives which can satisfy the ego and self- actualization needs of employees. The incentives which cannot be measured in terms of money are under the category of “Non- monetary incentives”. Whenever a manager has to satisfy the psychological needs of the subordinates, he makes use of non-financial incentives. Non- financial incentives can be of the following types:-


Security of service

- Job security is an incentive which provides great motivation to

employees. If his job is secured, he will put maximum efforts to achieve the objectives of the enterprise. This also helps since he is very far off from mental tension and he can

give his best to the enterprise.



Praise or recognition

- The praise or recognition is another non- financial incentive which

satisfies the ego needs of the employees. Sometimes praise becomes more effective

than any other incentive. The employees will respond more to praise and try to give the best of their abilities to a concern.


Suggestion scheme

- The organization should look forward to taking suggestions and

inviting suggestion schemes from the subordinates. This inculcates a spirit of participation in the employees. This can be done by publishing various articles written by employees to improve the work environment which can be published in various magazines of the company. This also is helpful to motivate the employees to feel important and they can also be in search for innovative methods which can be applied for better work methods. This ultimately helps in growing a concern and adapting new methods of operations.


Job enrichment

- Job enrichment is another non- monetary incentive in which the job of

a worker can be enriched. This can be done by increasing his responsibilities, giving him

an important designation, increasing the content and nature of the work. This way efficient worker can get challenging jobs in which they can prove their worth. This also helps in the greatest motivation of the efficient employees.


Promotion opportunities

- Promotion is an effective tool to increase the spirit to work in

a concern. If the employees are provided opportunities for the advancement and growth, they feel satisfied and contented and they become more committed to the organization.

The above non- financial tools can be framed effectively by giving due concentration to the role of employees. A combination of financial and non- financial incentives help together in bringing motivation and zeal to work in a concern.

Positive Incentives
Positive Incentives

Positive incentives are those incentives which provide a positive assurance for fulfilling the


needs and wants. Positive incentives generally have an optimistic attitude behind and they are


generally given to satisfy the psychological requirements of employees. For example-promotion,

praise, recognition, perks and allowances, etc. It is positive by nature.


Negative Incentives

Negative incentives are those whose purpose is to correct the mistakes or defaults of employees.


The purpose is to rectify mistakes in order to get effective results. Negative incentive is generally

resorted to when positive incentive does not works and a psychological set back has to be given


to employees. It is negative by nature. For example- demotion, transfer, fines, penalties.


PART B (4 × 15 = 60 marks)

Answer any FOUR questions.

  • 8. Describe the functions of Human Resource Management.

  • 9. Explain the procedure for Job Analysis.

Process of job analysis

You should do 8 steps as follows for conducting / writing a job analysis.

Step 1: Identify purpose of job analysis

You should identify purpose of job analysis because that will determine what job analysis

method, what data will be collected….

Step 2: Selecting the analysts

You can choose analyst from professional human resource, line mangers, incumbents or consultants.

Step 3: Selecting the appropriate method

• Select representative positions to analyze because there may be too many similar jobs to analyze, and it may not be necessary to analyze them all. • Review background information such as organization charts, process charts, and job

descriptions … of positions selected .

• Then identify methods of job analysis. There are many methods in job analysis, you should pay

attention to advantages and disadvantages of each method in order to choose suitable one.

• Identify sample size of position.

Step 4: Train the analysts

If you intend to use internal analysts you have to teach them how to use the selected methods.

Step 5: Preparation of job analysis

• Communicate the project in the organization. • Preparing the documentation, for example: interview questions, questionnaires.

Step 6: Collecting data

• Collecting data on job activities, employee behaviors, working conditions, and human traits and abilities needed to perform the job… • Using one or more of the job analysis methods to collect data.

Step 7: Review and verify

Consolidate the results.

You must review all data collected. This will help you to confirm that the information is factually correct and complete.

How can review information?

• Review data with his or her immediate supervisor. • Review data by technical conference (is a job analysis method). • Review data with incumbents by interview.

Step 8: Develop a job description and job specification

Implement the results into the company procedures according to the goal-setting.

Develop a job description and job specification from the job analysis information. A job description is a written statement that describes the activities and responsibilities of the job, working conditions and safety and hazards…A job specification summarizes the personal qualities, traits, skills, and background required for getting the job done.

10. Explain the various techniques of Training.

Training Methods / Techniques


forms and types of employee training methods are inter-related

Its difficult, if


. impossible, to say which or the methods or combination of methods is more useful than the other. In fact, methods are multi-faceted in scope and dimensions, and each is suitable for a particular situation.

The methods of training as follows:

On-the-Job-Training (OJT)

Job Instruction Training (JIT)

Vestibule Training

Training by experienced workmen

Classroom or Off-the-Job-Training like

  • - lecture

  • - conferences

  • - group discussion.

  • - case studies

  • - role playing

  • - programme instruction

  • - T-group training


Classification of Training Methods

(a) On the job
(a) On the job
(c) Demonstration and Examples (d) Simulation (b) Vestibule
and Examples
(d) Simulation
(b) Vestibule

(e) Apprenticeship

Training Methods / Techniques The forms and types of employee training methods are inter-related It ‘

(g) Other training methods

(f) Classroom


Training Methods / Techniques The forms and types of employee training methods are inter-related It ‘


Case study






Programmed Instruction

On-the-Job- Training (OJT)


There are a variety of OJT methods, such as

  • - coaching

  • - under study

  • - job rotation

  • - internship

  • - apprenticeship


  • Trainee learns of the actual equipment in use and in the true environment of his job.

  • Secondly, it is highly economical since no additional personnel or facilities are required for training.

  • Thirdly, the trainee learns the rules, regulations and procedures by observing their day-to-day applications. He can, therefore, be easily sized up by the management.

  • Fourthly, this type of training is a suitable alternative for a company in which there are almost as many jobs as there are employees.

  • Finally, it is most appropriate for teaching the knowledge and skills which can be acquired in a relatively short period, say, a few days or weeks.


  • Instruction is often highly disorganized.

Job Instruction Training (JIT)

This method is very popular in the States for preparing supervisors to train operatives.


method requires skilled trainers, extensive job analysis, training schedules, and prior assessment of the

trainee‘s job knowledge

. This method is also knows as ―

training through step-by-step learning

.‖ It

involves listing all necessary steps in the job, each in proper sequence. These steps show what is to be

done. Along side such step is also listed a corresponding ―Key point‖, which show how it is to be done

and why.

The job instruction training process is in four steps:

  • (i) The preparation of the trainee for instruction. This includes putting him at case, emphasizing the importance of the task and giving a general description of job duties and responsibilities.

(ii) Presentation of the instructions, giving essential information in a clear manner. This includes positioning the trainee at work site, telling and showing him each step of the job, stressing why and how each step is carried out as it is shown.

(iii) Having the trainee try out the job to show that he has understood the instructions, if there are any errors they are corrected; and

(iv) Encouraging the question and allowing the trainee to work along and the trainer follows up regularly.

The JIT methods provides immediate feedback on results, quick correction of errors, and provision of extra practice when required.

However, it demands a skilled trainer and can interfere with production and quality.

Vestibule training (or Training-Centre Training)


It is a classroom training which is often imparted with the help of the equipment and

machines which are identical with those in use in the place of work

. This techniques enables the

trainee to concentrate on learning the new rather than on performing an actual job.

It is a very efficient method of training semi-skilled personnel, particularly when many employees have to

trained for the same kind of what that same time.


Training is generally given in the form of lectures, conferences, case studies, role-playing and discussion.


  • Training is given in a separate room, distractions are minimized.

  • Trained instructor, who knows how to teach, can be more effectively utilized.

  • The correct method can be taught without interrupting production.

  • It permits the trainee to practice without the fear of supervisors‘ / co-workers‘ observations and their possible redicule.

Demerits of the Vestibule Training

  • The splitting of responsibilities leads to organizational problems.

  • An additional investment in equipments is necessary, though the cost may be reduced by getting some productive work done by trainees while in the school.

  • This method is of limited value for the jobs which utilize equipment which can be duplicated.

  • The training situation is somewhat artificial.


“Off-the-job-training” simply means that training is not a part of everyday job activity

. The

actual location may be in the company class rooms or in places which are owned by the company, or in universities or associations which have no connection with the company. These methods consist of:

  • 1. Lectures

  • 2. Conferences


Case Studies

  • 5. Role-playing

  • 6. Programme Instruction


  • 7. T-Group Training.

Lectures (or Class-Room Instruction):

Lectures are regarded as one of the most simple

ways of imparting knowledge to the trainees, especially when facts, concepts, or principles,

attitudes, theories and problem-solving abilities are to be taught. Lectures are formal organized talks by the training specialist, the formal superior or other individual specific topics. The lecture method can be used for very large groups which are to be trained within a short time, thus reducing the cost per trainee.

In training, the most important uses of lectures include:

  • Reducing anxiety about upcoming training programmes or organizational changes by explaining their purposes.

  • Introducing a subject and presenting an overview of its scope.

  • Presenting basic material that will provide a common back ground for subsequent activities.

  • Illustrating the application of rules, principles; reviewing, clarifying an summarizing.


  • (i) The learners are passive instead of active participants. The lecture method violates the principle of learning by doing.

(ii) A


and vigorous verbal presentation requires a great


management personnel often lack the time.

of preparation for which

(iii) The attention span of even a well-motivated and adequately informed listener is only from 15

minutes to 20 minutes so that in one course of an hour, the

attention of listeners drifts


(iv) It is difficult to stimulate discussion following a lecture, particularly if he listener is uninformed or awestruck by the lecturer.

  • (v) The untrained lecturer either ramples

or packs far too much information in the lecture

, which

often becomes unpalatable to the listener.

(vi) The presentation of material should be geared to a common level of knowledge.


It tends to emphasis the accumulation and memorization of facts and figures and does not lay stress on the application of knowledge.


Through a skilful lecturer can adapt his material to the specific group, he finds it difficult to adjust it for individual differences within a group.


The Conference Method

: In this method, the participating individuals ‗convers‘ to discuss

points of common interest to each other. A conference is basis to most participative group- centered methods of development. It is a formal meeting, conducted in accordance with an

organized plan, in which the leader seeks to develop knowledge and understanding by obtaining a considerable amount of oral participation of the trainees.

Three types of conferences are

  • 1. Directed discussion

  • 2. Training conference

  • 3. Seminar conference


Seminar or Team Discussion

: This is an established method for training. A seminar is conducted in

many ways:

  • (i) It may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person in charge of the seminar. It may be a part of a study or related to theoretical studies or practical problems. The trainees read their papers, and this is followed by critical discussion. The chairman of the seminar summaries the contents of the papers and the discussion which follow their reading.

(ii) It may be based on the statement made by the person in charge of the seminar or on a document prepared by an expert, who is invited to participate in the discussion.

(iii) The person is charge of the seminar distributes in advance the material to be analyzed in the form of required readings. The seminar compares the reactions of trainees, encourages discussion, defines the general trends and guides the participants to certain conclusions.

(iv) Valuable working material may be provided to the trainees by actual files. The trainees may consult the files and bring these to the seminar where they may study in detail the various aspects, ramifications and complexities of a particular job or work or task.


Case Studies (or Learning by doing):

This method was first developed in the 1880s by Christopher

Langdell at the Harvard Law School to help students to learn for themselves by independent thinking and

by discovering in the ever-tangled skein of human affairs, principles and ideas which have lasting validity and general applicability. A collateral object is to help them develop sills in using their knowledge.

In case study method the trainee is expected to:

  • (i) Master the facts, become acquainted with the content of the case;

(ii) Define the objectives sought in dealing with the issues in the case,

(iii) Identify the problems in case and uncover their probable causes;

(iv) Develop alternative co of action;

  • (v) Screen the alternatives using the objectives as the criteria;

(vi) Select the alternative that is most in keeping with the stated objectives.


Define the controls needed to make the action effective; and


To ‗role play‘ the action to test its effectiveness and find conditions that may limit it.

(a) Role-playing : This method was developed by Moreno, a Venetian psychiatrist. He coined the terms
  • (a) Role-playing

: This method was developed by Moreno, a Venetian psychiatrist. He coined the

terms ―role-playing,‖ ―role-reversal‖, ―socio-drama‖, ―psychodrams‖, and a variety of specialized terms, with emphasis on learning human relations skills through practice and insight into one‘s own behaviour and its effect upon others. It has been defined as ―a method of human interaction which involves realistic behaviour in the imaginary situations.‖

The Role-playing method merits are:

  • Learning by doing is emphasized;

  • Human sensitivity and interactions are stressed;

  • The knowledge of results is immediate;

  • Trainee interest and involvement tend to be high;

  • It is a useful method to project the living conditions between learning in the classroom and working on a job and creating a live business situation in the classroom.

  • It develops skills and ability to apply knowledge, particularly in areas like human relations; and

  • It brings about desired changes in behaviour and attitudes.

  • (b) Programmed Instruction (or Teaching by the Machine Method):

Programmed instruction involves a sequence of step which are often set up through the central panel of an electronic computer as guides in the performance of a desired operation or series of operation. It incorporates a pre-arranged, proposed, or desired course of proceedings pertaining to the learning or acquisition of some specific skills or general knowledge.

The merits of the methods are:

  • Trainees learn at their own pace;

  • Instructors are not a key part in learning;

  • The materials to be learned are broken down into small units;

  • Immediate feedback is available;

  • Active learner participation takes place at each step in the programme.

  • Individual differences can be taken into account;

  • Training can be imparted at odd times and in odd places;

  • There is a high level of learner motivation.

Demerits of the methods are:

  • The impersonality of instructional setting;

  • An advanced study is not possible until preliminary information has been acquired;

  • Only factual subject matters can be programmed;

  • Philsophical and attitudinal concepts and motor skills cannot be taught by this method; and

  • The cost of creating any such programme is very great.


T-Group Training

: This method of training is a technique of composition of audio visual aids

and planned reading programmes.

Audio-visual aids records, tapes, and films are generally used in conjunction with other conventional teaching method.

  • Some employees are engaged in a confined phase of a particular task and lose their all-round skills in a particular trade. Hence, to keep them active in all-found skills, such training is needed.

  • During prolonged lay-off periods, employees on certain highly skilled jobs are given retraining when they are called back to work.

  • Technological changes may make a particular job, on which an employee is working. Unnecessary, and the company may desire to retrain him rather than discharge him.

  • An employee, because of illness, accident or incapacity due to age, may no longer be able to do his share of the work he performed when he was in normal health.

Economic depression or cyclical variations in production create conditions in which employment stabilization may be achieved by having a versatile work-force capable or performing more than one job

11. Discuss the Herzberg's motivation - Hygiene theory.

 Philsophical and attitudinal concepts and motor skills cannot be taught by this method; and 

Herzberg's Motivation-Hygiene Theory (sometimes known as Herzberg's Two Factor Theory.) Published in his famous article "One More Time: How do You Motivate Employees", the conclusions he drew were extraordinarily influential, and still form the bedrock of good motivational practice nearly half a century later.

Motivation-Hygiene Theory

Herzberg's findings revealed that certain characteristics of a job are consistently related to job satisfaction, while different factors are associated with job dissatisfaction. These are:

Factors for Satisfaction

Factors for Dissatisfaction


Company Policies



The work itself

Relationship with Supervisor and Peers


Work conditions







The conclusion he drew is that job satisfaction and job dissatisfaction are not opposites.

The opposite of Satisfaction is No Satisfaction.

The opposite of Dissatisfaction is No Dissatisfaction.

Remedying the causes of dissatisfaction will not create satisfaction. Nor will adding the factors of job satisfaction eliminate job dissatisfaction. If you have a hostile work environment, giving someone a promotion will not make him or her satisfied. If you create a healthy work environment but do not provide members of your team with any of the satisfaction factors, the work they're doing will still not be satisfying.

According to Herzberg, the factors leading to job satisfaction are "separate and distinct from those that lead to job dissatisfaction." Therefore, if you set about eliminating dissatisfying job factors you may create peace, but not necessarily enhance performance. This placates your workforce instead of actually motivating them to improve performance.

The characteristics associated with job dissatisfaction are called hygiene factors. When these have been adequately, people will not be dissatisfied nor will they be satisfied. If you want to motivate your team, you then have to focus on satisfaction factors like achievement, recognition, and responsibility.

Herzberg's Motivation-Hygiene Theory ( sometimes Published in his famous article "One More Time: How do You

NOTE: Despite its wide acceptance, Herzberg's theory has its detractors. Some say its methodology does not address the notion that when things are going well people tend to look at the things they enjoy about their job. When things are going badly, however, they tend to blame external factors.

Another common criticism is the fact that the theory assumes a strong correlation between job satisfaction and productivity. Herzberg's methodology did not address this relationship, therefore this assumption needs to be correct for his findings to have practical relevance.

Herzberg's Motivation-Hygiene Theory ( sometimes Published in his famous article "One More Time: How do You

To apply Herzberg's theory, you need to adopt a two stage process to motivate people. Firstly, you need eliminate the dissatisfactions they're experiencing and, secondly, you need to help them find satisfaction.

Step One: Eliminate Job Dissatisfaction

Herzberg called the causes of dissatisfaction "hygiene factors". To get rid of them, you need to:

Fix poor and obstructive company policies. Provide effective, supportive and non-intrusive supervision. Create and support a culture of respect and dignity for all team members. Ensure that wages are competitive. Build job status by providing meaningful work for all positions. Provide job security.

All of these actions help you eliminate job dissatisfaction in your organization. And there's no point trying to motivate people until these issues are out of the way!

You can't stop there, though. Remember, just because someone is not dissatisfied, it doesn't mean he or she is satisfied either! Now you have to turn your attention to building job satisfaction.

Step Two: Create Conditions for Job Satisfaction

To create satisfaction, Herzberg says you need to address the motivating factors associated with work. He called this "job enrichment". His premise was that every job should be examined to determine how it could be made better and more satisfying to the person doing the work. Things to consider include:

Providing opportunities for achievement. Recognizing workers' contributions. Creating work that is rewarding and that matches the skills and abilities of the worker. Giving as much responsibility to each team member as possible. Providing opportunities to advance in the company through internal promotions.

Offering training and development opportunities, so that people can pursue the positions they want within the company.

To apply Herzberg's theory, you need to adopt a two stage process to motivate people. Firstly,job enrichment . Key Points: " id="pdf-obj-57-48" src="pdf-obj-57-48.jpg">

Tip 1:

Here we're approaching the subject of motivation in a very general way. In reality, you'll need "different strokes for different folks" in other words, different people will perceive different issues, and will be motivated by different things. Make sure you talk with your people regularly on a one-to-one basis to find out what matters to them.

Tip 2:

Herzberg's theory is largely responsible for the practice of allowing people greater responsibility for planning and controlling their work, as a means of increasing motivation and satisfaction. To learn more about this, see the Mind Tools article on job enrichment.

To apply Herzberg's theory, you need to adopt a two stage process to motivate people. Firstly,job enrichment . Key Points: " id="pdf-obj-57-62" src="pdf-obj-57-62.jpg">
To apply Herzberg's theory, you need to adopt a two stage process to motivate people. Firstly,job enrichment . Key Points: " id="pdf-obj-57-64" src="pdf-obj-57-64.jpg">

Key Points:

The relationship between motivation and job satisfaction is not overly complex. The problem is that many employers look at the hygiene factors as ways to motivate when in fact, beyond the very short term, they do very little to motivate.

Perhaps managers like to use this approach because they think people are more financially motivated than, perhaps, they are, or perhaps it just takes less management effort to raise wages than it does to reevaluate company policy, and redesign jobs for maximum satisfaction.

When you're seeking to motivate people, firstly get rid of the things that are annoying them about the company and the workplace. Make sure they're treated fairly, and with respect.

Once you've done this, look for ways in which you can help people grow within their jobs, give them opportunities for achievement, and praise that achievement wherever you find it.

12. Explain the need and importance of ‘man power planning’.

Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:

  • 1. Analysing the current manpower inventory

  • 2. Making future manpower forecasts

  • 3. Developing employment programmes

  • 4. Design training programmes

Steps in Manpower Planning

  • 1. Analysing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted- Type of organization Number of departments Number and quantity of such departments Employees in these work units

Once these factors are registered by a manager, he goes for the future forecasting.

  • 2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows:


Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi


technique. Trend Analysis: Manpower needs can be projected through extrapolation (projecting


past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). Work Load Analysis: It is dependent upon the nature of work load in a department, in a


branch or in a division. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements.


Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.

  • 3. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.

  • 4. Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

  • 1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.

  • 2. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function.

  • 3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function.

  • 4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.

  • 5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration)

Need of Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner:


Shortages and surpluses can be identified so that quick action can be taken wherever required.

  • 2. All the recruitment and selection programmes are based on manpower planning.

  • 3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided.

  • 4. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents.

  • 5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.

  • 6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

13. Explain the following :

(a) (a) Promotion.

A promotion is an increase in rank which may also be accompanied by a raise in pay, benefits,

and responsibility. Most people view promotions positively, as they indicate that the individual being promoted is successful, valuable, and useful. In many workplaces, people actively work towards promotion and its accompanied benefits. The term is also sometimes used to refer to a general change in status such as a graduation, which is why you may find yourself attending a ―fifth grade promotion‖ instead of a fifth grade graduation. Typically, someone is rewarded with a promotion when he or she performs exemplary work, or shows aptitude for a position with more responsibility. This is usually a cause for celebration, as it indicates that the employee has a potential for development and long employment within the company. A promotion may include supervision responsibilities, as the promoted employee becomes responsible for administrative assistants and other staff. These responsibilities should not be taken lightly, as most employees look to their supervisors for guidance and examples of appropriate workplace behavior. A promotion may also require more work, which goes along with general increases in responsibility. This work may be more complex or more interesting, however, so most employees are happy to take it on. In recognition of the increased workload and status of the employee, most employers offer a pay raise with a promotion, and employees may become eligible for additional benefits. In a ranked system like the military or a fire department, the promotion may be called an increase in rank or grade, and the employee's pay will be adjusted according to a rigid scale. Notification of a promotion and congratulations are usually offered by a supervisor or high ranking member of the company. If you have been selected for a promotion, be aware that this is an excellent time to

make negotiations, such as a request for a change in hours, because your employer is indicating that you are valued as an employee. When you are promoted, you may have to sign paperwork indicating the type of promotion and noting any changes in pay. Not all people view promotions as cause for celebrations. Some people, for example, prefer to remain lower in rank so that they can stay in the field in professions like policing. Others enjoy jobs with light responsibilities, despite the lower pay. In some cases, it is possible to reject such a promotion, although an employer may be puzzled. In others, a promotion is not an option







is a reduction


rank, often accompanied with a lower pay status. There are many