UNIT 3 FACULTYING AND LEADING: Human resource management, HR Planning,

Recruitment selection, training & development, performance management, career planning and
management, Directing individual and group behavior, motivation, motivation theories,
motivational techniques, job satisfaction, job enrichment, leadership, types & theories of
leadership, effective communication.

Introduction to Human Resource Management

Human resource management (HRM) is the process of employing people, training them,
compensating them, developing policies relating to them, and developing strategies to retain them.
As a field, HRM has undergone many changes over the last twenty years, giving it an even more
important role in today’s organizations. In the past, HRM meant processing payroll, sending
birthday gifts to employees, arranging company outings, and making sure forms were filled out
correctly—in other words, more of an administrative role rather than a strategic role crucial to the
success of the organization.

Of all the factors of production namely M‘s of Management i.e. Materials, Machinery,
money, methods and Men, Man occupies an important place. The other 4 M ‘s by themselves will
not help the organization to achieve its goals unless there is an effective coordination and
utilization of human resources. To look after the various functions set for the organization adequate
resources in men and materials have to be arranged by individuals who serve as managers or
supervisors within organizations. Such people have to make things happen to aid in the
achievement of the organizational objectives, to co-ordinate the resources of the organization- 4
important Ms. Viz., money, material (raw or semi-manufactured), machinery (or fixed assets and
plants), and men (or human resources). It is an effective combination and dovetailing of these
factors on which the success or failure of the organization depends. The resources by themselves
will not help the organization to accomplish the objective, unless there is an effective co-
ordination and utilization of these human and non-human resources.

MEANING AND DEFINITION

Human Resource Management is the process of recruitment, selection of employee,

providing proper orientation and induction, providing proper training and the developing skills,
assessment of employee (performanceof appraisal), providing proper compensation and benefits,
motivating, maintaining proper relations with labor and with trade unions, maintaining employee’s
safety, welfare and health by complying with labor laws of concern state or country.

HRM is the study of activities regarding people working in an organization. It is a

managerial function that tries to match an organization’s needs to the skills and abilities of its
employees.

Edward B. Philippo defined Human Resource Management as personnel function which

is concerned with procurement, development, compensation, integration and maintenance of the
personnel of an organization for the purpose of contributing towards the accomplishments of the
organization’s objectives. Therefore, personnel management is the planning, organizing, directing,
and controlling of the performance of those operative functions.

According to Wendell L French “the human resource management refers to the

philosophy, policies, procedures, & practice related to the management of people within an
organization.

According to Stephen P Robbins, HRM is a process consisting of the acquisition,

development, motivation & maintenance of human resources.

NATURE OF HRM

HRM is a management function that helps manager’s to recruit, select, train and develop
members for an organization. HRM is concerned with people’s dimension in organizations.

The following constitute the core of HRM

1. HRM Involves the Application of Management Functions and Principles. The functions and
principles are applied to acquiring, developing, maintaining and providing remuneration to

employees in organization.

2. Decision Relating to Employees must be Integrated. Decisions on different aspects of

employees must be consistent with other human resource (HR) decisions.

3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an

organization will result in betterment of services to customers in the form of high-qualityproducts
supplied at reasonable costs.

4. HRM Functions are not Confined to Business Establishments Only but applicable to
nonbusiness organizations such as education, health care, recreation and like. HRM refers to a set
of programmes, functions and activities designed and carried out in order to maximize both
employee as well as organizational effectiveness.

Scope of HRM

The scope of HRM is indeed vast. All major activities in the working life of a worker –
from the time of his or her entry into an organization until he or she leaves the organizations comes
under the purview of HRM. The major HRM activities include HR planning, job analysis, job
design, employee hiring, employee and executive remuneration, employee motivation, employee
maintenance, industrial relations and prospects of HRM.

The scope of Human Resources Management extends to: All the decisions, strategies, factors,
principles, operations, practices, functions, activities and methods related to the management of
people as employees in any type of organization. All the dimensions related to people in their
employment relationships, and all the dynamics that flow from it.

The scope of HRM is really vast. All major activities n the working life of a worker – from the
time of his
or her entry into an organization until he or she leaves it comes under the purview of HRM.
American
Society for Training and Development (ASTD) conducted fairly an exhaustive study in this field
and
identified nine broad areas of activities of HRM.
These are given below:
o Human Resource Planning
o Design of the Organization and Job
o Selection and Staffing
o Training and Development
o Organizational Development
o Compensation and Benefits
 o Employee Assistance
o Union/Labour Relations
o Personnel Research and Information System
a) Human Resource Planning: The objective of HR Planning is to ensure that the organization
hasthe right types of persons at the right time at the right place. It prepares human resources
inventorywith a view to assess present and future needs, availability and possible shortages in
human resource.Thereupon, HR Planning forecast demand and supplies and identify sources of
selection. HRPlanning develops strategies both long-term and short-term, to meet the man-power
requirement.
b) Design of Organization and Job: This is the task of laying down organization structure,
authority,relationship and responsibilities. This will also mean definition of work contents for each
positionin the organization. This is done by “job description”. Another important step is “Job
specification”.Job specification identifies the attributes of persons who will be most suitable for
each job whichis defined by job description.
c) Selection and Staffing: This is the process of recruitment and selection of staff. This involves
matching people and their expectations with which the job specifications and career path available
within the organization.
d) Training and Development: This involves an organized attempt to find out training needs of
theindividuals to meet the knowledge and skill which is needed not only to perform current job
butalso to fulfil the future needs of the organization.
e) Organizational Development: This is an important aspect whereby “Synergetic effect” is
generated in an organization i.e. healthy interpersonal and inter-group relationship within the
organization.
f) Compensation and Benefits: This is the area of wages and salaries administration where
wages
and compensations are fixed scientifically to meet fairness and equity criteria. In addition labour
welfare measures are involved which include benefits and services.
g) Employee Assistance: Each employee is unique in character, personality, expectation and
temperament. By and large each one of them faces problems everyday. Some are personal some
are official. In their case he or she remains worried. Such worries must be removed to make him
or her more productive and happy.
h) Union-Labour Relations: Healthy Industrial and Labour relations are very important for
enhancingpeace and productivity in an organization. This is one of the areas of HRM.
i) Personnel Research and Information System: Knowledge on behavioral science and
industrialpsychology throws better insight into the workers expectations, aspirations and
behaviour.Advancement of technology of product and production methods have created working
environmentwhich are much different from the past. Globalization of economy has increased
competitionmany fold. Science of ergonomics gives better ideas of doing a work more
conveniently by anemployee. Thus, continuous research in HR areas is an unavoidable
requirement. It must also takespecial care for improving exchange of information through
effective communication systems on acontinuous basis especially on moral and motivation.
Functions of HRM

Managerial, Operative and Advisory Function

Some of the major functions of human resource management are as follows: 1. Managerial
Functions2. Operative Functions 3. Advisory Functions.
Human Resource or Personnel Department is established in most of the organizations, under the
charge of an executive known as Human Resource/Personnel Manager. This department plays an
important role in the efficient management of human resources.
The personnel department gives assistance and provides service to all other departments on
personnelmatters. Though personnel or human resource manager is a staff officer in relation to
otherdepartments of the enterprise, he has a line authority to get orders executed within his
department.
(i) Managerial,
(ii) Operative and
(iii) Advisory functions.
1. Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he must perform
thebasic managerial functions of planning, organising, directing and controlling in relation to his
department.
There functions are briefly discussed below:
1. Planning:To get things done through the subordinates, a manager must plan ahead. Planning is
necessary todetermine the goals of the organisation and lay down policies and procedures to reach
the goals. For ahuman resource manager, planning means the determination of personnel
programs that willcontribute to the goals of the enterprise, i.e., anticipating vacancies, planning
job requirements, jobdescriptions and determination of the sources of recruitment.
The process of personnel planning involves three essential steps.
Firstly, a supply and demand forecast for each job category is made. This step requires knowledge
toboth labour market conditions and the strategic posture and goals of the organisation.Secondly,
net shortage and excess of personnel by job category are projected for a specific time
horizon.Finally, plans are developed to eliminate the forecast shortages and excess of particular
categories ofhuman resources.
2. Organizing:
Once the human resource manager has established objectives and developed plans and programs
toreach them, he must design and develop organisation structure to carry out the various
operations.
The organization structure basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and responsibilities involved;
(iv) Co-ordination of activities of different individuals.

3. Directing:
The plans are to be pure into effect by people. But how smoothly the plans are implemented
dependson the motivation of people. The direction function of the personnel manager involves
encouragingpeople to work willingly and effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and motivate the people to accomplish the
personnel programs. The personnel manager can motivate the employees in an organisation
throughcareer planning, salary administration, ensuring employee morale, developing cordial
relationshipsand provision of safety requirements and welfare of employees.
The motivational function poses a great challenge for any manager. The personnel manager must
have the ability to identify the needs of employees and the means and methods of satisfy those
needs.Motivation is a continuous process as new needs and expectations emerge among employees
whenold ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans, which in
turnhave been formulated on the basis of the objectives of the organisation. Thus, controlling
completesthe cycle and leads back to planning. It involves the observation and comparison of
results with thestandards and correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the control the performance of the personnel
department in terms of various operative functions. It involves performance appraisal, critical
examination of personnel records and statistics and personnel audit.
2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the human
resource or personnel department. These are concerned with employment, development,
compensation, integration and maintenance of personnel of the organisation.
The operative functions of human resource or personnel department are discussed below:
1.Employment:The first operative function of the human resource of personnel department is the
employment ofproper kind and number of persons necessary to achieve the objectives of the
organisation. Thisinvolves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower requirements both
in
terms of number and quality of the personnel. Recruitment and selection cover the sources of
supplyof labour and the devices designed to select the right type of people for various jobs.
Induction andplacement of personnel for their better performance also come under the
employment or procurementfunction.
2. Development:Training and development of personnel is a follow up of the employment function.
It is a duty ofmanagement to train each employee property to develop technical skills for the job
for which he hasbeen employed and also to develop him for the higher jobs in the organisation.
Proper development ofpersonnel is necessary to increase their skills in doing their jobs and in
satisfying their growth need.For this purpose, the personnel departments will device appropriate
training programs. There areseveral on- the-job and off-the-job methods available for training
purposes. A good training programshould include a mixture of both types of methods. It is
important to point out that personneldepartment arranges for training not only of new employees
but also of old employees to update theirknowledge in the use of latest techniques.
3. Compensation:
This function is concerned with the determination of adequate and equitable remuneration of the
employees in the organisation of their contribution to the organisational goals. The personnel can
becompensated both in terms of monetary as well as non-monetary rewards.Factors which must
be borne in mind while fixing the remuneration of personnel are their basicneeds, requirements
of jobs, legal provisions regarding minimum wages, capacity of the organization to pay, wage
level afforded by competitors etc. For fixing the wage levels, the personnel departmentcan make
use of certain techniques like job evaluation and performance appraisal.
4. Maintenance (Working Conditions and Welfare):Merely appointment and training of people is
not sufficient; they must be provided with goodworking, conditions so that they may like their
work and workplace and maintain their efficiency.Working conditions certainly influence the
motivation and morale of the employees.These include measures taken for health, safety, and
comfort of the workforce. The personneldepartment also provides for various welfare services
which relate to the physical and social wellbeingof the employees. These may include provision
of cafeteria, rest rooms, counseling, groupinsurance, education for children of employees,
recreational facilities, etc.
5. Motivation:Employees work in the organisation for the satisfaction of their needs. In many of
the cases, it isfound that they do not contribute towards the organisational goals as much as they
can. This happensbecause employees are not adequately motivated. The human resource manager
helps the variousdepartmental managers to design a system of financial and non- financial rewards
to motivate theemployees.
6. Personnel Records:The human resource or personnel department maintains the records of the
employees working in theenterprise. It keeps full records of their training, achievements, transfer,
promotion, etc. It alsopreserves many other records relating to the behaviour of personnel like
absenteeism and labourturnover and the personnel programs and policies of the organisation.
7. Industrial Relations:These days, the responsibility of maintaining good industrial relations is
mainly discharged by thehuman resource manager. The human resource manager can help in
collective bargaining, jointconsultation and settlement of disputes, if the need arises. This is
because of the fact that he is inpossession of full information relating to personnel and has the
working knowledge of various labourenactments.The human resource manager can do a great
deal in maintaining industrial peace in the organization as he is deeply associated with various
committees on discipline, labour welfare, safety, grievance, etc. He helps in laying down the
grievance procedure to redress the grievances of the employees. Healso gives authentic
information to the trade union leaders and conveys their views on various labour
problems to the top management.
8. Separation:Since the first function of human resource management is to procure the
employees, it is logical thatthe last should be the separation and return of that person to society.
Most people do not die on thejob. The organisation is responsible for meeting certain
requirements of due process in separation, aswell as assuring that the returned person is in as
good shape as possible. The personnel manager hasto ensure the release of retirement benefits
to the retiring personnel in time.
3. Advisory Functions:
Human resource manager has specialized education and training in managing human
resources.He isan expert in his area and so can give advice on matters relating to human
resources of the organization.

Human Resource Planning

Human resource is the most important asset of an organization. Human resources planning
arethe important managerial function. It ensures the right type of people, in the right
number, at theright time and place, who are trained and motivated to do the right kind of work
at the right time, thereisgenerally a shortage of suitable persons.
The enterprise will estimate its manpower requirements and then find out the sources from
whichtheneeds will be met. If required manpower is not available then the work will suffer.
Developing
countries are suffering from the shortage of trained managers. Job opportunities are available
in thesecountries but properly trained personnel are not available. These countries try to import
trained skillfrom other countries.
In order to cope up with the human resource requirements, an enterprise will have to plan in
advanceits needs and the sources. The terms human resource planning and manpower planning
are generally used interchangeably. Human resource planning is not a substitute for manpower
planning. Rather thelatter is a part of the former i.e., manpower planning is integrated with
human resource planning.
 Definition Human Resource Planning: of human resource
planningImportant definitions
According to E.W. Vetter, human resource planning is “the process by which a management
determines how an organization should make from its current manpower position to its desired
manpower position.Through planning a management strives to have the right number and
theright kind of people at theright places, at the right time to do things which result in
both theorganization and the individualreceiving the maximum long range benefit.”
Features of Human Resource Planning:
The following features of human resource planning can be derived:
1. Well Defined Objectives:Enterprise’s objectives and goals in its strategic planning and
operating planning may form theobjectives of human resource planning. Human resource needs
are planned on the basis of company’sgoals. Besides, human resource planning has its own
objectives like developing human resources,updating technical expertise, career planning
ofindividual executives and people, ensuring bettercommitment of people and so on.
2. Determining Human Resource Needs:Human resource plan must incorporate the human
resource needs of the enterprise. The thinking willhave to be done in advance so that the persons

are available at a time when they are required. For thispurpose, an enterprise will have to
undertake recruiting, selecting and training process also.
3. Keeping Manpower Inventory:It includes the inventory of present manpower in the
organization. The executive should know thepersons who will be available to him for
undertaking higher responsibilities in the near future.
4. Adjusting Demand and Supply:Manpower needs have to be planned well in advance as
suitable persons are available in future. Ifsufficient persons will not be available in future then
efforts should be .made to start recruitmentprocess well in advance. The demand and supply of
personnel should be planned in advance.
5. Creating Proper Work Environment:Besides estimating and employing personnel, human
resource planning also ensures that workingconditions are created. Employees should like to
work in the organisation and they should get properjob satisfaction

MANPOWER PLANNING
Manpower Planning which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things 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 system 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 programme
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:
i. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past
trends), indexation (using base year as basis), and statistical analysis (central tendency
measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.
iv. Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
 v. 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. Efficient utilization- Efficient management of personnel becomes an important function in the
industrialization world of today. Setting of large-scale enterprises require management of large-
scale manpower. It can be effectively done through staffing function.
2. 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 become an integral
part of staffing function.
3. 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.
4. 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 its related activities (Performance appraisal, training and
development, remuneration)
OBSTACLES OF MANPOWER PLANNING
Following are the main obstacles that organizations face in the process of manpower planning:
1. Under Utilization of Manpower: The biggest obstacle in case of manpower planning is the fact
that the industries in general are not making optimum use of their manpower and once manpower
planning begins, it encounters heavy odds in stepping up the utilization.
2. Degree of Absenteeism: Absenteeism is quite high and has been increasing since last few years.
 3. Lack of Education and Skilled Labour: The extent of illetracy and the slow pace of development
of the skilled categories account for low productivity in employees. Low productivity has
implications for manpower planning.
4. Manpower Control and Review:
a. Any increase in manpower is considered at the top level of management
b. On the basis of manpower plans, personnel budgets are prepared. These act as control
mechanisms to keep the manpower under certain broadly defined limits.
c. The productivity of any organization is usually calculated using the formula:
Productivity = Output / Input
. But a rough index of employee productivity is calculated as follows:
Employee Productivity = Total Production / Total no. of employees
d. Exit Interviews, the rate of turnover and rate of absenteesim are source of vital information
on the satisfaction level of manpower. For conservation of Human Resources and better
utilization of men studying these condition, manpower control would have to take into
account the data to make meaningful analysis.
e. Extent of Overtime: The amount of overtime paid may be due to real shortage of men,
ineffective management or improper utilization of manpower. Manpower control would
require a careful study of overtime statistics.
JOB ANALYSIS
It is a systematic analysis of each job for the purpose of collecting information as to what the job holder
does, under what circumstances it is performed and what qualifications are required for doing the job.
FEATURES OF JOB ANALYSIS
1. Job analysis is a process of gathering relevant information about various aspects of a job and is
concerned with the identification of tasks required to be performed as part of it.
2. It approaches the task of defining the role, context, conditions, human behavior, performance
standards, and responsibilities of a job systematically.
3. It helps in establishing the job’s worth to an organization. In other words, it measures the value
and contribution of a job to the growth of the organization.
4. It establishes job-relatedness, which is a crucial input for HR decisions involving recruitment,
selection, compensations, training, health, and safety.
PURPOSE OF JOB ANALYSIS
 Recruitment and Selection: Job Analysis helps in determining what kind of person is required to
perform a particular job. It points out the educational qualifications, level of experience and
 technical, physical, emotional and personal skills required to carry out a job in desired fashion. The
objective is to fit a right person at a right place.
 Performance Analysis: Job analysis is done to check if goals and objectives of a particular job are
met or not. It helps in deciding the performance standards, evaluation criteria and individual’s
output. On this basis, the overall performance of an employee is measured and he or she is appraised
accordingly.
 Training and Development: Job Analysis can be used to assess the training and development
needs of employees. The difference between the expected and actual output determines the level of
training that need to be imparted to employees. It also helps in deciding the training content, tools
and equipment’s to be used to conduct training and methods of training.
 Compensation Management: Of course, job analysis plays a vital role in deciding the pay
packages and extra perks and benefits and fixed and variable incentives of employees. After all, the
pay package depends on the position, job title and duties and responsibilities involved in a job.
The process guides HR managers in deciding the worth of an employee for a particular job opening.
 Job Designing and Redesigning: The main purpose of job analysis is to streamline the human
efforts and get the best possible output. It helps in designing, redesigning, enriching, evaluating and
also cutting back and adding the extra responsibilities in a particular job. This is done to enhance
the employee satisfaction while increasing the human output.
PROCESS IN JOB ANALYSIS
1. Information Collection
This is the first step of job analysis under which required information related to various aspects of jobs are
collected. Probably the most important consideration is to identify the objectives of the job analysis.
Information is obtained through different methods such as interview, observation, questionnaire, critical
incidents etc. It is associated with the preparation of plans and programs and assignment of
responsibilities to the concerned person.
2. Review Background Information
This is the second step of job analysis process under which the previously collected information is
reviewed to design organizational charts, current position descriptions and specifications, procedures,
manuals and process charts. These help in the detailed assessment of job.
3. Selection of Representative Position to be Analyzed
Analyzing all jobs at a time is a complex and costly affair. So, only a representative sample of jobs is
selected for the purpose of detailed analysis. Under it, the job analyst investigates to determine which
organization managers or employees require job analysis. He should also determine for what purpose the
job must be analyzed.
4. Analysis of Job by Collecting Data
Under this step of job analysis process, a job analyst obtains the data and information related to the
selected jobs. The information is collected on the job activities, required employee behaviors, working
conditions, human traits and qualities, abilities to perform the job and other various dimensions of the job.
Data can be collected either through questionnaire, observation or interviews.
5. Develop Job Description
In this step of job analysis, a job description schedule is developed through the information collected in
the above step. This is the written statement which describes the prominent characteristics of the job
along with duties, location, and degree of risk involved in each job.
6. Develop Job Specification
Developing the job specification is the last step of job analysis process under which a detailed
specification statement is prepared showing the minimum requirement of each job. It consists of a
requirement of the job holder for successfully performing the job. A job specification summarizes the
personal qualities, traits, skills, knowledge, and background required to perform the specific task. It also
involves the physical and psychological attributes of the incumbent.
METHODS OF COLLECTING JOB ANALYSIS INFORMATION
 Observation Method: A job analyst observes an employee and records all his performed and non-
performed task, fulfilled and un-fulfilled responsibilities and duties, methods, ways and skills used by
him or her to perform various duties and his or her mental or emotional ability to handle challenges and
risks. However, it seems one of the easiest methods to analyze a specific job but truth is that it is the
most difficult one.
It is due to the fact that every person has his own way of observing things. Different people think
different and interpret the findings in different ways. Therefore, the process may involve personal
biasness or likes and dislikes and may not produce genuine results. This error can be avoided by proper
training of job analyst or whoever will be conducting the job analysis process.
This particular method includes three techniques: direct observation, Work Methods Analysis and
Critical Incident Technique. The first method includes direct observation and recording of behaviour
of an employee in different situations. The second involves the study of time and motion and is specially
used for assembly-line or factory workers. The third one is about identifying the work behaviours that
result in performance.
 Interview Method: In this method, an employee is interviewed so that he or she comes up with their
own working styles, problems faced by them, use of particular skills and techniques while performing
their job and insecurities and fears about their careers.
 This method helps interviewer know what exactly an employee thinks about his or her own job and
responsibilities involved in it. It involves analysis of job by employee himself. In order to generate
honest and true feedback or collect genuine data, questions asked during the interview should be
carefully decided. And to avoid errors, it is always good to interview more than one individual to get
a pool of responses. Then it can be generalized and used for the whole group.
 Questionnaire Method: Another commonly used job analysis method is getting the questionnaires
filled from employees, their superiors and managers. However, this method also suffers from personal
biasness. A great care should be takes while framing questions for different grades of employees.
In order to get the true job-related info, management should effectively communicate it to the staff that
data collected will be used for their own good.
• Quantitative Techniques
The methods of collecting job-related data, described above are used by most employers. But there are
occasions where these narrative approaches are not appropriate. For example, where it is desired to
assign a quantitative value to each job so that jobs can be compared for pay purposes, a more
quantitative approach will be appropriate. The position analysis questionnaire, management position
description questionnaire and functional job analysis are the three popular techniques of job analysis.
ADVANTAGES OF JOB ANALYSIS
 Provides First Hand Job-Related Information: The job analysis process provides with valuable
job-related data that helps managers and job analyst the duties and responsibilities of a particular
job, risks and hazards involved in it, skills and abilities required to perform the job and other related
info.
 Helps in Creating Right Job-Employee Fit: This is one of the most crucial management
activities. Filling the right person in a right job vacancy is a test of skills, understanding and
competencies of HR managers. Job Analysis helps them understand what type of employee willbe
suitable to deliver a specific job successfully.
 Helps in Establishing Effective Hiring Practices: Who is to be filled where and when? Who to
target and how for a specific job opening? Job analysis process gives answers to all these questions
and helps managers in creating, establishing and maintaining effective hiring practices.
 Guides through Performance Evaluation and Appraisal Processes: Job Analysis helps
managers evaluating the performance of employees by comparing the standard or desired output
with delivered or actual output. On these bases, they appraise their performances. The process helps
in deciding whom to promote and when. It also guides managers in understanding the skill gaps so
that right person can be fit at that particular place in order to get desired output.
  Helps in Analysing Training & Development Needs: The process of job analysis gives answer
to following questions:
 Who to impart training?
 When to impart training
 What should be the content of training
 What should be the type of training: behavioural or technical
 Who will conduct training?
 Helps in Deciding Compensation Package for a Specific Job: A genuine and unbiased process
of job analysis helps managers in determining the appropriate compensation package and benefits
and allowances for a particular job. This is done on the basis of responsibilities and hazards
involved in a job.
DISADVANTAGES OF JOB ANALYSIS
 Time Consuming: The biggest disadvantage of Job Analysis process is that it is very time
consuming. It is a major limitation especially when jobs change frequently.
 Involves Personal Biasness: If the observer or job analyst is an employee of the same organization,
the process may involve his or her personal likes and dislikes. This is a major hindrance in
collecting genuine and accurate data.
 Source of Data is Extremely Small: Because of small sample size, the source of collecting data
is extremely small. Therefore, information collected from few individuals needs to be standardized.
 Involves Lots of Human Efforts: The process involves lots of human efforts. As every job carries
different information and there is no set pattern, customized information is to be collected for
different jobs. The process needs to be conducted separately for collecting and recording job-
related data.
 Job Analyst May Not Possess Appropriate Skills: If job analyst is not aware of the objective of
job analysis process or does not possess appropriate skills to conduct the process, it is a sheer
wastage of company’s resources. He or she needs to be trained in order to get authentic data.
 Mental Abilities Can not be Directly Observed: Last but not the least, mental abilities such as
intellect, emotional characteristics, knowledge, aptitude, psychic and endurance are intangible
things that can not be observed or measured directly. People act differently in different situations.
Therefore, general standards can not be set for mental abilities.

RECRUITMENT AND SELECTION

Recruitment and Selection process is defined as the process through which the best individuals are
selected among a pool of applicants for particular positions of job. Mostly managers consider the
selection process as one of their critical decision functions in the organization.
SCOPE OF RECRUITMENT AND SELECTION
• Dealing with the excess or shortage of resources
• Preparing the Recruitment policy for different categories of employees
• Analyzing the recruitment policies, processes, and procedures of the organization
• Identifying the areas, where there could be a scope of improvement
• Streamlining the hiring process with suitable recommendations
• Choosing the best suitable process of recruitment for effective hiring of resources
FACTORS AFFECTING RECRUITMENT
□ Internal Factors
Organizations have control over the internal factors that affect their recruitment functions. The internal
factors are:
Size of Organization
The size of the organization is one of the most important factors affecting the recruitment process. To
expand the business, recruitment planning is mandatory for hiring more resources, which will be handling
the future operations.
Recruiting Policy
Recruitment policy of an organization, i.e., hiring from internal or external sources of organization is also
a factor, which affects the recruitment process. It specifies the objectives of the recruitment and provides
a framework for the implementation of recruitment programs. Image of Organization
Organizations having a good positive image in the market can easily attract competent resources.
Maintaining good public relations, providing public services, etc., definitely helps an organization in
enhancing its reputation in the market, and thereby attract the best possible resources.
Image of Job
Just like the image of organization, the image of a job plays a critical role in recruitment. Jobs having a
positive image in terms of better remuneration, promotions, recognition, good work environment with
career development opportunities are considered to be the characteristics to attract qualified candidates.
□ External Factors
External factors are those that cannot be controlled by an organization. The external factors that affect the
recruitment process include the following:
Demographic factors
Demographic factors are related to the attributes of potential employees such as their age, religion,
literacy level, gender, occupation, economic status, etc.
Labor market – Labor market controls the demand and supply of labor. For example, if the supply of
people having a specific skill is less than the demand, then the hiring will need more efforts. On the other
hand, if the demand is less than the supply, the hiring will be relative easier.
Unemployment rate
If the unemployment rate is high in a specific area, hiring of resources will be simple and easier, as the
number of applicants is very high. In contrast, if the unemployment rate is low, then recruiting tends to be
very difficult due to a smaller number of resources.
Labour laws
Labour laws reflect the social and political environment of a market, which are created by the central and
state governments. These laws dictate the compensation, working environment, safety and health
regulations, etc., for different types of employments. As the government changes, the laws too change.
Legal considerations
Job reservations for different castes such as STs, SCs, OBCs are best examples of legal considerations.
These considerations, passed by government, will have a positive or negative impact on the recruitment
policies of the organizations.
Competitors
When organizations in the same industry are competing for the best qualified resources, there is a need to
analyse the competition and offer the resources packages that are best in terms of industry standards.
SOURCES OF RECRUITMENT
□ Internal Sources of Recruitment
Internal sources of recruitment refer to hiring employees within the organization internally. In other
words, applicants seeking for the different positions are those who are currently employed with the same
organization. At the time recruitment of employees, the initial consideration should be given to those
employees who are currently working within the organization. This is an important source of recruitment,
which provides the opportunities for the development and utilization of the existing resources within the
organization. Internal sources of recruitment are the best and the easiest way of selecting resources as
performance of their work is already known to the organization. Let us now discuss more on the various
internal sources of recruitment
Promotions
Promotion refers to upgrading the cadre of the employees by evaluating their performance in the
organization. It is the process of shifting an employee from a lower position to a higher position with
more responsibilities, remuneration, facilities, and status. Many organizations fill the higher vacant
positions with the process of promotions, internally.
Transfers
Transfer refers to the process of interchanging from one job to another without any change in the rank and
responsibilities. It can also be the shifting of employees from one department to another department or
one location to another location, depending upon the requirement of the position.
Recruiting Former Employees
Recruiting former employees is a process of internal sources of recruitment, wherein the ex employees
are called back depending upon the requirement of the position. This process is cost effective and saves
plenty of time. The other major benefit of recruiting former employees is that they are very well versed
with the roles and responsibilities of the job and the organization needs to spend less on their training and
development.
Internal Advertisements (Job Posting)
Internal Advertisements is a process of posting/advertising jobs within the organization. This job posting
is an open invitation to all the employees inside the organization, where they can apply for the vacant
positions. It provides equal opportunities to all the employees working in the organization. Hence, the
recruitment will be done from within the organization and it saves a lot of cost.
Employee Referrals
Employee referrals is an effective way of sourcing the right candidates at a low cost. It is the process of
hiring new resources through the references of employees, who are currently working with the
organization. In this process, the present employees can refer their friends and relatives for filling up the
vacant positions. Organizations encourage employee referrals, because it is cost effective and saves time
as compared to hiring candidates from external sources. Most organizations, in order to motivate their
employees, go ahead and reward them with a referral bonus for a successful hire.
Previous Applicants
Here, the hiring team checks the profiles of previous applicants from the organizational recruitment
database. These applicants are those who have applied for jobs in the past. These resources can be easily
approached and the response will be positive in most of the cases. It is also an inexpensive way of filling
up the vacant positions.
□ External Sources of Recruitment
External sources of recruitment refer to hiring employees outside the organization externally. In other
words, the applicants seeking job opportunities in this case are those who are external to the organization.
External employees bring innovativeness and fresh thoughts to the organization. Although hiring through
external sources is a bit expensive and tough, it has tremendous potential of driving the organization
forward in achieving its goals. Let us now discuss in detail the various external sources of recruitment.
Direct Recruitment
Direct recruitment refers to the external source of recruitment where the recruitment of qualified
candidates are done by placing a notice of vacancy on the notice board in the organization. This method
of sourcing is also called as factory gate recruitment, as the blue-collar and technical workers are hired
through this process.
Employment Exchanges
As per the law, for certain job vacancies, it is mandatory that the organization provides details to the
employment exchange. Employment exchange is a government entity, where the details of the job seekers
are stored and given to the employers for filling the vacant positions. This external recruitment is helpful
in hiring for unskilled, semi-skilled, and skilled workers.
Employment Agencies
Employment agencies are a good external source of recruitment. Employment agencies are run by various
sectors like private, public, or government. It provides unskilled, semi-skilled and skilled resources as per
the requirements of the organization. These agencies hold a database of qualified candidates and
organizations can use their services at a cost.
Advertisements
Advertisements are the most popular and very much preferred source of external source of recruitment.
The job vacancy is announced through various print and electronic media with a specific job description
and specifications of the requirements. Using advertisements is the best way to source candidates in a
short span and it offers an efficient way of screening the candidates’ specific requirements.
Professional Associations
Professional associations can help an organization in hiring professional, technical, and managerial
personnel, however they specialize in sourcing mid-level and top-level resources. There are many
professional associations that act as a bridge between the organizations and the job-seekers.
Campus Recruitment
Campus recruitment is an external source of recruitment, where the educational institutions such as
colleges and universities offers opportunities for hiring students. In this process, the organizations visit
technical, management, and professional institutions for recruiting students directly for the new positions.

RECRUITMENT PROCESS
 Initial Screening
 Application blank
 Pre-employment Testing
 Interview
 Background Checks
  Conditional Job Offer
 Drug Test/Medical Exam
 Final Selection Decision
Initial Screening
Generally, the Selection and the Recruitment Process starts with the initial screening of applicants
so that the unqualified ones are drop out at the initial stage. Initial screening is helpful to save the
time, cost & effort of the selection committee in the following steps of the selection process.
In this step, certain general questions are asked from the applicants. There are chances that some
applicants would be unqualified for the job but some of them would be qualified. So the main
purpose of screening applicants is to reduce the number of applicants available in the selection
process.
Sources used in the Screening Effort
The main source of initial screening is the curriculum vitae of the applicant along with the job
application. The following information is included in the above-mentioned documents.
 Education & Employment History
 Evaluation of character
 Evaluation of job performance
Screening Interviews
Screening interviews are employed to
 To verify the accuracy & validity of the information given in the curriculum vitae of theapplicant.
 The duration of these interviews is quite short.
Application Blank
The person’s application for employment is formally recorded in the shape of the application
blank. In the next step of the selection process, an application form for employment is completed
by the prospective applicant. The information contained in the application blank differs from one
organization to another organization and in job posts, it may vary even within the same
organization.
But generally, the informational needs and the requirements of EEO are covered in the application blank.
The historical data from the candidate can be quickly collected through the application blanks so that
further verification about the accuracy of the data is carried out.
Pre-employment Test
The physical & mental abilities, knowledge, skills, personal characteristics & other aspects of behavior
can be effectively measured through the pre-employment tests. For this purpose, there are hundreds of
tests that can measure the different aspects of human behavior.
With the passage of time, the application of the pre-employment test is growing at a fast rate in the
selection process because they can explain the qualities & skills of the applicant clearly. These tests are
more used in the large & public sector organizations.
The advantage of the application of tests in the selection process is that it can ensure the potential &
qualified candidate selection from a pool of applicants for a job.
Kinds of Pre-employment Tests
As individuals vary on the basis of cognitive abilities, job knowledge, vocational interests, psycho-motor
abilities & personality, etc. So, all these factors are measured through a set of different pre-employment
tests which are as follows.
• Cognitive Aptitude tests
In this test, the ability to learn & perform a job by an individual is judged. The abilities related to the job
are as follow.
1. Verbal
2. Reasoning
3. Numerical
4. Perceptual Speed
5. Spatial
• Psychomotor Abilities Test
In this test, the coordination, strength & dexterity of an individual is judged. Other abilities related to
routine office jobs & production jobs can also be measured through these tests.
• Job Knowledge Tests
This test is used to measure the knowledge of the person about the duties of a particular job.
• Work Sample Tests
A set of tasks that represent a job are identified in this test through which the productivity level, ability to
face adverse conditions by the applicants are judged.
• Vocational Interest test
This test identifies the occupations that are preferred by the candidate & that can provide him maximum
satisfaction.
• Personality Tests
These tests are not considered to be so reliable & valid as compared to other pre-employment tests
because these tests require external psychologist who interprets the results of the tests subjectively.
• Drug & Alcohol Tests
For the security, productivity & safety of the workplace drug testing programs are used as pre-
employment tests.
Job Interviews
In the interview, the interviewer & applicant exchange information in order to achieve a goal through
conversation. The employment interviews are conducted during the selection process through proper
planning. The pleasant location of the interviewing place is selected and the interviewer has a good
personality with empathy & ability to communicate & listen effectively. A job profile must be prepared
on the basis of the job description before conducting the interview.
Contents of the Interview
Although the contents of the employment interview vary from one organization to another & also
according to the nature of the job but still following are the essential contents of the interview.
□ Occupational Experience
□ Academic Achievement
□ Interpersonal Skills
□ Personal Qualities
□ Organizational Fit
Types of Interviews
□ Structured Interview: In this type, the interview is designed and detailed in advance. A structured
interview is pre-planned, accurate, and consistent in hiring the candidates.
□ Unstructured Interview: This type of interview is an unplanned one, where the interview
questionnaire is not prepared. Here, the effectiveness of the interview is very less and there is a
tremendous waste of time and effort of both the interviewer and the interviewee.
□ Group Interview: In this type of interview, all the candidates or a group of candidates are
interviewed together. Group interviews are conducted to save time when there is a large number of
applications for a few job vacancies. A topic will be given to discuss among the candidates and the
interviewer judges the innovativeness and behavior of each candidate in the group.
□ Depth Interview: Depth interview is a semi-structured interview, where the candidates have to
give a detailed information about their education background, work experience, special interests,
etc. And the interviewer takes a depth interview and tries in finding the expertise of the candidate.
□ Stress Interview: Stress interviews are conducted to discover how a candidate behaves in stressful
conditions. In this type of interview, the interviewer will come to know whether the
 candidate can handle the demands of a complex job. The candidate who maintains his composure
during a stress interview is normally the right person to handle a stressful job.
□ Individual Interview: In an individual interview, the interview takes place one-on-one i.e., there
will be a verbal and a visual interaction between two people, an interviewer and a candidate. This
is a two-way communication interview, which helps in finding the right candidate for a vacant job
position.
□ Informal Interview: Such interviews are conducted in an informal way, i.e., the interview will be
fixed without any written communication and can be arranged at any place. There is no procedure
of asking questions in this type of interview, hence it will be a friendly kind of interview.
□ Formal Interview: A formal interview held in a formal way, i.e., the candidate will be intimated
about the interview well in advance and the interviewer plans and prepares questions for the
interview. This is also called as a planned interview.
Back Ground Checks
The accuracy of the application form of the candidate is verified through references & former employer.
The educational, criminal record & legal status to work are verified. Personal references of applicants are
contacted to confirm the validity & accuracy of the provided information.
The effort is made to know the past behavior of the employees to that the future behavior can be predicted
from it. Background checks assist the selection committee in dropping the applicants that have past
insubordination issues, attendance problem, theft, or special behavioral problems. The level of
responsibility for the new job directs the intensity of the background investigation.
Conditional Job Offer
After going through all the previous steps of the selection process, there comes the most important step of
the selection process in which the decision of hiring is made. The applicant that best meets the
requirements of the job is selected. At the start, a conditional job letter is issued which must be followed
by a medical exam.
Medical Exam
When the conditional job letter is issued the next step of the selection process starts in which the
physical/medical examination of the selected candidate is conducted. The medical exam of the candidate
is essential to check either he takes the drugs or not. If he passes the exam, he would be finally selected
for the job.
Final Selection Decision
After passing the medical exam by the candidate, the final offer for the job is made to the candidate by the
relative department.
 TRAINING AND DEVELOPMENT
Training is an organised process of increasing the knowledge and skills of people for doing a particular
job. it is a learning process involving the acquisition of skills and attitude.
Training and education:
• The purpose of training is to bring about in improvement in the performance of work.
• It includes the learning of such skills as are required to do a specific job in a better way

Training and development

• Training implies learning the basic skills and knowledge required for a particular job On the other hand
development involves the growth of the individual in all respects.
NEED FOR TRAINING
1. New environment:
When a new employee comes to work, he is unaware of the environment in the organisation
2. Lack of trained personnel:
It is always not possible to recruit and select train employees.
Majority of the newly employed persons do not know how to perform their jobs

3. Advancement in technology
Need for systematic training has increased due to rapid technological changes which create new jobs
requiring new skills.
When improvements take place in the techniques of work employees have to be trained to become
proficient in latest methods of doing work
4. Faulty methods:
Some employees might have picked up defective ways of doing work which may result in wastage and
inefficiency.
Training is required to remove these defects and to teach them correct method and behaviour
patterns.
5. Prevention of accidents:
Training is needed to prevent industrial accidents for this purpose safety consciousness must be created
among workers so that they realise the significance of safe working
6. Career development:
When persons working at lower levels are promoted to higher positions, they require training in higher
job. This is necessary not only to replace the outgoing executives but also to provide opportunity for
advancement
ADVANTAGES OF TRAINING
1. Increase productivity
2. Job satisfaction
3. Reduction in accidents
4. Better use of resources
5. Reduced supervision
6. Greater flexibility
7. Management by exception
8. Stability and growth
METHODS OF TRAINING

• On- the- job- training methods

1. Job rotation:
This training method involves movement of trainee from one job to another gain knowledge and
experience from different job assignments. This method helps the trainee understand the problems
of other employees.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor who functions as a coach in
training and provides feedback to the trainee. Sometimes the trainee may not get an opportunity
to express his ideas.
 3. Job instructions:
Also known as step-by-step training in which the trainer explains the way of doing the jobs to the
trainee and in case of mistakes, corrects the trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by discussing the problem.
This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical aspects are provided to the
trainees. Usually, students from the engineering and commerce colleges receive this type of
training for a small stipend.
• Off-the-job training Methods
On the job training methods have their own limitations, and in order to have the overall
development of employee’s off-the-job training can also be imparted. The methods of training
which are adopted for the development of employees away from the field of the job are known as
off-the-job methods.
The following are some of the off-the-job techniques:
1. Case study method:
Usually case study deals with any problem confronted by a business which can be solved by an
employee. The trainee is given an opportunity to analyse the case and come out with all possible
solutions. This method can enhance analytic and critical thinking of an employee.
2. Incident method:
Incidents are prepared on the basis of actual situations which happened in different organizations
and each employee in the training group is asked to make decisions as if it is a real-life situation.
Later on, the entire group discusses the incident and takes decisions related to the incident on the
basis of individual and group decisions.
3. Role play:
In this case also a problem situation is simulated asking the employee to assume the role of a
particular person in the situation. The participant interacts with other participants assuming
different roles. The whole play will be recorded and trainee gets an opportunity to examine their
own performance.
 4. In-basket method:
The employees are given information about an imaginary company, its activities and products, HR
employed and all data related to the firm. The trainee (employee under training) has to make notes,
delegate tasks and prepare schedules within a specified time. This can develop situational
judgments and quick decision making skills of employees.
5. Business games:
According to this method the trainees are divided into groups and each group has to discuss about
various activities and functions of an imaginary organization. They will discuss and decide about
various subjects like production, promotion, pricing etc. This gives result in co-operative decision
making process.
6. Grid training:
It is a continuous and phased programme lasting for six years. It includes phases of planning
development, implementation and evaluation. The grid takes into consideration parameters like
concern for people and concern for people.
7. Lectures:
This will be a suitable method when the numbers of trainees are quite large. Lectures can be very
much helpful in explaining the concepts and principles very clearly, and face to face interaction
is very much possible.
8. Simulation:
Under this method an imaginary situation is created and trainees are asked to act on it. For e.g.,
assuming the role of a marketing manager solving the marketing problems or creating a new
strategy etc.
9. Management education:
At present universities and management institutes gives great emphasis on management education.
For e.g., Mumbai University has started bachelors and postgraduate degree in Management. Many
management Institutes provide not only degrees but also hands on experience having collaboration
with business concerns.
10. Conferences:
A meeting of several people to discuss any subject is called conference. Each participant
contributes by analyzing and discussing various issues related to the topic. Everyone can express
their own view point.
TYPES OF TRAINING
1. Induction training:
Also known as orientation training given for the new recruits in order to make them familiarize with the
internal environment of an organization. It helps the employees to understand the procedures, code of
conduct, policies existing in that organization.
2. Job instruction training:
This training provides an overview about the job and experienced trainers demonstrates the entire job.
Addition training is offered to employees after evaluating their performance if necessary.
3. Vestibule training:
It is the training on actual work to be done by an employee but conducted away from the work place.
5. Apprenticeship training:
Apprentice is a worker who spends a prescribed period of time under a supervisor.
PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and to understand
the abilities of a person for further growth and development. Performance appraisal is generally done in
systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.
OBJECTIVES OF PERFORMANCE APPRAISAL
Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure, salaries raises,
etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.
ADVANTAGES OF PERFORMANCE APPRAISAL
It is said that performance appraisal is an investment for the company which can be justified by following
advantages:
1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes
for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.
 2. Compensation: Performance Appraisal helps in chalking out compensation packages for
employees. Merit rating is possible through performance appraisal. Performance Appraisal tries
to give worth to a performance. Compensation packages which includes bonus, high salary rates,
extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria
should be merit rather than seniority.
3. Employees Development: The systematic procedure of performance appraisal helps the
supervisors to frame training policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for efficient employees. It also helps
in framing future development programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and
importance of the selection procedure. The supervisors come to know the validity and thereby the
strengths and weaknesses of selection procedure. Future changes in selection methods can be made
in this regard.
5. Communication: For an organization, effective communication between employees and
employers is very important. Through performance appraisal, communication can be sought for in
the following ways:
a. Through performance appraisal, the employers can understand and accept skills of
subordinates.
b. The subordinates can also understand and create a trust and confidence in superiors.
c. It also helps in maintaining cordial and congenial labour management relationship.
d. It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance
of employees, a person’s efficiency can be determined if the targets are achieved. This very well
motivates a person for better job and helps him to improve his performance in the future.

METHODS OF PERFORMANCE APPRAISAL

1. TRADITIONAL METHOD
a. Ranking Method
It is the oldest and simplest formal systematic method of performance appraisal in whichemployee
is compared with all others for the purpose of placing order of worth. The employees are ranked
from the highest to the lowest or from the best to the worst.
In doing this the employee who is the highest on the characteristic being measured and also the one who
is L lowest, are indicated. Then, the next highest and the next lowest between next highest and lowest
until all the employees to be rated have been ranked. Thus, if there are ten employees to be appraised,
there will be ten ranks from 1 to 10.
b. Paired Comparison Method
In this method, each employee is compared with other employees on one- on one basis, usually
based on one trait only. The rater is provided with a bunch of slips each coining pair of names, the
rater puts a tick mark against the employee whom he insiders the better of the two. The number of
times this employee is compared as better with others determines his or her final ranking.
The number of possible pairs for a given number of employees is ascertained by the following
formula:
N (N-1)/2
Where N = the total number of employees to be evaluated.
c. Grading Method
In this method, certain categories of worth are established in advance and carefully defined. There
can be three categories established for employees: outstanding, satisfactory and unsatisfactory.
There can be more than three grades. Employee performance is compared with grade definitions.
The employee is, then, allocated to the grade that best describes his or her performance.
Such type of grading is done is Semester pattern of examinations and in the selection of a candidate
in the public service sector. One of the major drawbacks of this method is that the rater may rate
most of the employees on the higher side of their performance.
d. Forced Distribution Method
This method was evolved by Tiffen to eliminate the central tendency of rating most of the
employees at a higher end of the scale. The method assumes that employees’ performance level
confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful for
rating a large number of employees’ job performance and promo ability. It tends to eliminate or
reduce bias.
It is also highly simple to understand and easy to apply in appraising the performance ofemployees
in organisations. It suffer from the drawback that improve similarly, no single grade would rise in
a ratings.
 e. Check-List Method
The basic purpose of utilizing check-list method is to ease the evaluation burden upon the rater. In
this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’ are prepared
by the HR department. The check-list is, then, presented to the rater to tick appropriate answers
relevant to the appraisee. Each question carries a weight-age in relationship to their importance.

When the check-list is completed, it is sent to the HR department to prepare the final scores for all
appraises based on all questions. While preparing questions an attempt is made to determine the
degree of consistency of the rater by asking the same question twice but in a different manner (see,
numbers 3 and 6 in Figure 28-2).
However, one of the disadvantages of the check-list method is that it is difficult to assemble,
analyse and weigh a number of statements about employee characteristics and contributions
From a cost stand point also, this method may be inefficient particularly if there are a number of
job categories in the organisation, because a check-list of questions must be prepared for each
category of job. It will involve a lot of money, time and efforts.
f. Critical Incidents Method
In this method, the rate focuses his or her attention on those key or critical behaviours that make
the difference between performing a job in a noteworthy manner (effectively or ineffectively).
There are three steps involved in appraising employees using this method.
First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is prepared. Second, a
group of experts then assigns weightage or score to these incidents, depending upon their degree of
desirability to perform a job. Third, finally a check-list indicating incidents that describe workers as
“good” or “bad” is constructed. Then, the check-list is given to the rater for evaluating the workers.
 g. Graphic Rating Scale Method
The graphic rating scale is one of the most popular and simplest techniques for appraising
performance. It is also known as linear rating scale. In this method, the printed appraisal form is
used to appraise each employee.
The form lists traits (such as quality and reliability) and a range of job performance characteristics
(from unsatisfactory to outstanding) for each trait. The rating is done on the basis of points on the
continuum. The common practice is to follow five points scale.
The rater rates each appraisee by checking the score that best describes his or her performance for
each trait all assigned values for the traits are then totalled. Figure 28-3 shows a typical graphic
rating scale.

h. Essay Method
Essay method is the simplest one among various appraisal methods available. In this method, the
rater writes a narrative description on an employee’s strengths, weaknesses, past performance,
potential and suggestions for improvement. Its positive point is that it is simple in use. It does not
require complex formats and extensive/specific training to complete it.
However, essay method, like other methods, is not free from drawbacks. In the absence of any
prescribed structure, the essays are likely to vary widely in terms of length and content. And, of
course, the quality of appraisal depends more upon rater’s writing skill than the appraiser’s actual
level of performance.
2. MODERN METHODS
 a. Management by Objective (MBO)
MBO does not comprise of feedbacks and thus it is less time-consuming. Rather management by
objective focuses on self-introspection by the employee as the employee is well aware of the
standards which are taken into consideration while evaluating performance. The employeetargets
to perform better as the employee and the employer both are aware of their goals and deliverables
towards the organization and hence management by objective are one of the fair methods of
performance appraisals. As the goals are already known to the employee the employee tends to
perform better for his/her appraisal and recognition and thus there is no need for constant feedback.
This method saves the effort of the employer and helps the employee to improve and excel by self-
evaluation.
b. 360-Degree Feedback Method
This method of performance appraisal is very useful for start-ups as it involves collecting
feedback from each and every individual who interacts with the employee during the course of
work. These individuals could be customer or friends or supervisors of the employee. Collecting
feedback and gathering data gives a clear insight into the personality traits of the employee and
attitude towards work assigned. This method is time-consuming although it gives the overall
performance card of the employee and the management can plan the career development
accordingly with the help of the data collected. This method benefits both the employee and the
organization as the constant feedback would help to understand the employee and his work
approach better helping them to grow. The advantage of this method is that it is cost-effective and
gives a clear picture of employee’s performance.
c. Assessment Centered Method
This method of evaluation is basically used by the organization for evaluating managers who are
subsequently going to deal with their juniors. The assessment-based method judges the employee
as per the different situations and analyses their overall behaviour like acceptability, openness,
tolerance towards fellow employees and certain situations, etc. and performance. It includes
various kinds of business games like big basket games etc. to assess the performance of the
employee. Thus this method is best to evaluate the performance of the employees at a senior level.
 d. Behaviourally Anchored Rating Scale Method (BARS)
This method has been recognized as the most effective performance appraisal methods and gives
the most precise result. It is the combination of essay evaluation method and rating scale method
which makes it a bit expensive performance appraisal method, however, it assures the best results.
In this method of performance appraisal, the employee is anchored as a good, average or poor
employee based on the overall performance and behavior evaluation. The human resource
department is also involved in this method and they are informed about the employee’s behavior
ad performance simultaneously.
e. Critical Incident Method
This is a pretty lengthy and time-consuming method of performance appraisal although it is very
effective. As per this approach of performance appraisals the manager documents all the incidents
of statements and behavior of the employee and maintains a log of such incidents which are critical
or displays the ineffective behavior of the employee and the performance rating of the employee
is done on the basis of such recorded incidents after a discussion with the employee. The managers
are expected to maintain the log of both outstanding incidents and critical incidents and also the
manager is expected to be fair while making the decisions.
PROCESS OF PERFORMANCE APPRAISAL
• Establish performance standard
• Communicate the standard to employees
• Measure actual performance
• Compare actual performance with standards
• Discuss the appraisal with employees
• Initiate corrective actions
1. Establish Performance Standards
The appraisal process begins with the establishment of performance standards. The managers must
determine what outputs, accomplishments and skills will be evaluated. These standards should
have evolved out of job analysis and job descriptions.
These performance standards should also be clear and objective to be understood and measured.
Standards should not be expressed in an articulated or vague manner such as “a good job” or “a
full day’s work” as these vague phrases tells nothing.
 2. Communicate Performance Expectations to Employees
Once the performance standards are established, this need to be communicated to the respective
employees so that they come to know what is expected of them. Past experience indicates that not
communicating standards to the employees compounds the appraisal problem.
Here, it must be noted that mere transference of information (relating to performance standards,
for example) from the manager to the employees is not communication It becomes
communication only when the transference of information has taken place and has been received
and understood by the employees’.
The feedback from the employees on the standards communicated to them must be obtained. If
required, the standards may be modified or revised in the light of feedback obtained from the
employees. It is important to note that communication is a two-way street.
3. Measure Actual Performance
This is the third step involved in the appraisal process. In this stage, the actual performance of the
employee is measured on the basis of information available from various sources such as personal
observation, statistical reports, oral reports, and written reports.
Needless to mention, the evaluator’s feelings should not influence the performance measurement
of the employee. Measurement must be objective based on facts and findings. This is because what
we measure is more critical and important to the evaluation process than how we measure.
4. Compare Actual Performance with Standards
In this stage, the actual performance is compared with the predetermined standards. Such a
comparison may reveal the deviation between standard performance and actual performance and
will enable the evaluator to proceed to the fifth step in the process, i.e., the discussion of the
appraisal with the concerned employees.
5. Discuss the Appraisal with the Employee
The fifth step in the appraisal process is to communicate to and discuss with the employees the
results of the appraisal. This is, in fact, one of the most challenging tasks the manager’s face to
present an accurate appraisal to the employees and then make them accept the appraisal in a
constructive manner.
A discussion on appraisal enables employees to know their strengths and weaknesses. This has, in
turn, impact on their future performance. Yes, the impact may be positive or negative depending
upon how the appraisal is presented and discussed with the employees.
 6. Initiate Corrective Action
The final step in the appraisal process is the initiation of corrective action when it is necessary. The
areas needing improvement are identified and then, the measures to correct or improve the
performance are identified and initiated.
The corrective action can be of two types. One is immediate and deals predominantly with
symptoms. This action is often called as “putting out fires.” The other is basic and delves into causes
of deviations and seeks to adjust the difference permanently.
This type of action involves time to analyse deviations.
CAREER DEVELOPMENT
The career development is the process of conversion of personal career plan into action in order to
achieve career goals. There are three key heroes who share responsibility for an employee’s career
development- the employee, the organisation, and the manager.
Career development is the process of self-knowledge, exploration, and decision-making that shapes
your career. It requires successfully navigating your occupational options to choose and train for
jobs that suit your personality, skills, and interests.
According to Edwin Flippo, “A career is sequence of separate but related work activities that provide
continuity, order and meaning to a person’s life.”

CAREER PLANNING AND MANAGEMENT

Career planning is the self-evaluation & planning done by a person to have a strong
career path. Career planning process in the continuous reiterative process of
understanding oneself, setting career goals, revising skills and searching for the right
career options.
Importance of Career Planning
1. To attract competent person & to retain them in the organisation.
2. To provide suitable promotional opportunity.
3. To enable the employees to develop & take them ready to meet the futurechallenges.
4. To increase the utilization of managerial reserves within an organisation.
5. To attract employment placement.
6. To reduce employee dissatisfaction & turnover.
7. To improve motivation & morale.
STEPS IN THE CAREER PLANNING PROCESS
Career planning process is an important aspect for an individual’s careerdevelopment. Some of
the basic steps in a career planning process are:
1. Self-Assessment: The first step in the career planning process is self-assessment tobe done by
the individual to understand his or her skills, areas of interest etc.
2. Research on Careers: The second step in the career planning process is tounderstand the
career options, companies available, growth options in career etc.
3. Set Career Objectives: The next step in the career planning is to set short-term aswell as
long-term career goals for oneself, and to have a clear career path.
4. Learn & Improve Skills: The fourth step in the career planning process is to keepacquiring
new skills and knowledge to be in line with career objectives and withindustry requirements.
5. Preparation of CV: The next step in the career planning is to be fully prepared interms of
CV, cover letter, recommendations etc.
6. Job Search: The sixth step in the career planning process is to short-list thecompanies where
an individual is seeking a job & start applying.
7. Revise Career Goals: The last step in the career planning process is tocontinuously evaluate
the career goals and again do a self-assessment to build a strongcareer path.
Motivation

The term ‘motivation’ is derived from the Latin word ‘mover’ which means to move and
represent the force that moves people, and causes them to act. So, motivation can be defined as a
process of channelling a person’s inner drive so that he wants to accomplish the goals of the
organisation. Motivation is a behavioural concept by which we try to understand why people
behave as they do. A human being is an organic and not a mechanical system. He or she is a self-
activated person. The force of motivation lies within our mind. It is dynamic force, setting a person
into motion or action. Robert Dubin has defined motivation as “The complex of forces starting
and keeping a person at work in an organisation”

IMPORTANCE OF MOTIVATION

Motivation is an important function of management. All managers should induce their

employees on the job to extract performance by motivating them. Below, we discuss some
important aspects of motivation.
i) Utilisation of human resource : By motivation techniques, management can properly
utilise its human resources. This helps the managers to increase the productivity of
employees. By virtue of motivation employees can understand organisational culture.
Thereby, human resources can be properly utilised.
ii) Use of material resources: By motivating employees of an organisation, the material
resources can also be used in a proper way which increases organisational efficiency.
iii) Willingness for work : In an organisation, there may have some employees who are
physically and mentally capable to do work, but may not be willing to work. In such a
situation, motivation can create willingness among the employees for work.
iv) Good labour relations : Motivation also helps an organisation in building up a good
labour relation. Thereby motivation become beneficial to management and employees.
So, motivation can reduce different labour problems such as absenteeism, labour
turnover, indiscipline, grievances etc.
v) Develops cooperation: Motivation can build up team spirit. Thereby, motivation
makes possible to increase collective effort of employees to the organisation. So,
motivation forms the basis for cooperation to get the best achievement of organisation
objectives.
vi) Improve skill and knowledge : Motivated employees always try to be as efficient as
possible and to improve their skill and knowledge. Because, motivated employees
always resolve to do their responsibilities in the best manner.
vii) Boosts Morale : Morale implies the attitude and feelings of employees about their
work as well as situation of work. Motivation can improve the attitude and feelings of
employees towards works. So, motivation can also improve morale of employees.
viii) Facilitates change : Research based fact says that properly motivated employees are
more receptive to accept changes.So, motivation helps the employees to adjust with
changing environment.
ix) Sense of belongingness: A proper motivation system can improve the sense of
belongingness among the employees. As a result, employees can feel that organisation
belongs to them. So, employees become more concerned about the well being of the
organisation.
 x) Achieve organisational objectives: Motivation can be defined as core of
management. By motivation managers directly encourage the employees towards the
accomplishment of organisational objectives.

THEORIES OF MOTIVATION

Now, we are aware of the fact that motivating the employees is very important in
organisations. But motivating employees is a difficult task for the managers.

MASLOW’S NEED HIERARCHY THEORY

A.H. Maslow has developed the Need Hierarchy Theory for understanding human needs.
According to Maslow, human needs tend to follow a basic hierarchical pattern from the most basic
needs to the highest level needs. Until the basic needs are fulfilled, person will not try meet his
higher level needs. The theory of Maslow is based on the needs of the people. He proposed a
hierarchy of five types of needs which are mentioned below

1) Physiological needs :- These are the primary needs of human beings and relate to the survival
of the body. These needs are more or less universal. These are called the needs of lowest level and
they are to be satisfied first for existence and survival. Unless these needs are satisfied to the degree
needed for the efficient operation of the body, a person’s activities will be at this leveland the
other needs will provide him with little motivation. So, this is a powerful motivating force. i) The
physiological needs are - Food, shelter, clothing, water, air, sleep, sex etc.

ii) Safety or Security needs: These needs come next in the hierarchy. They are concerned with
physical and financial security. Man is always worried about security as life is full of uncertainties.
So human beings always expect physical security, job security and security of income at all times.
In an organisation, management can motivate employees by providing security against
uncertainties in the form of secured jobs, insurance plans and pension plans. Example of safety
needs are Protection against deprivation, danger and threat on or off the job
e.g. unemployment, protection from physical harm, ill health, old age or any other reason.

iii) Social needs : Man being a social animal is always interested to live in a society or group
which loves him most. He wants to give or receive love. These are to be reflected by recognition,
conversation, sociabitity, exchange of feelings and grievances, acceptance and friendship. When
social needs become dominant, a person will strive for meaningful relations with others. If the
opportunity for association with other people is reduced, men often take vigorous action against
the barriers to social intercourse. Examples of social needs are: affection, love, friendship,
acceptance by the group, communication etc.

iv) Esteem or Ego needs: These needs relate to the prestige and respect of the individual and
include such things as self confidence, independence, achievement, competence, knowledge and
control. Satisfaction of these needs produces feelings of self-confidence, prestige, power and
control.. The esteem needs can be classified mainly into two types, such as 1) Self -esteem needs
2) Public esteem needs. Self-esteem needs refer to an individual’s feeling that he is doing
something worthwhile, while the public esteem needs refer the image in the eyes of the public like
praise, admiration and public appreciation etc. Examples of esteem needs are: Status, approval,
appreciation, freedom from control, recognition, self- respect of others.

v) Self Actualisation need : It is also called self realisation needs. This refers to the need to
realise specific goals. It is need “to become everything that one is capable of becoming”.
According to Maslow “This need might be phrased as the desire to become more and more what
one is to become everything that one is capable of becoming.” A musician must make music, a
poet must write, a general must win battles, an artist must paint, a teacher must teach if he is to
be ultimately happy. Examples of self actualisation need are : need for self development, self-
actualisation, self-advancement, desire to take on increased responsibilities etc. Maslow’s needs
hierarchy is illustrated with the help of the following diagram.
MC GREGOR’S THEORY X AND THEORY Y

Theory X and Theory Y were propounded by Douglas Mc Gregor who was a known
psychologist. These theories are based on the dual nature of human beings.According to these
theories all management actions flow from two assumptions. Theory X : This is a traditional theory
of management. Theory X contains a set of negative assumptions about human behaviour.
Assumption of Theory X :

i) The average human being is basically lazy and has an inherant dislike for work.
He will avoid work, if he can.
ii) Many people lack ambition. They are not interested in achievement. They like to
be directed.
iii) Most people have little creativily for solving organisalional problems.
iv) Most people are indifferent to organisational goals.
v) Most people must be closely controlled and often threatened to achieve
organisaliona goals.
vi) Motivation of average human beings occur at the psychological and safety levels.

Assumption of Theory Y:

i) The average person does not inherently dislike work. He considers work is as
natural as play, if the conditions are favorable.
 ii) External control and threat of punishment are not the only ways for bringing about
efforts towards ortganisational objectives. Self- control and commitment to the
objectives of the organisation is often indispensible in achieving organisational
goals.
iii) Average human being under proper conditions not only accepts but also seeks
responsibility. Avoidance of responsibility, lack of ambition and emphasis on
security are generally the consequences of experience not inherent in human
characteristics.
iv) The capacity of employees to cooperate with the management in solving
organisational problems is widely present.
v) The modern industrial system have partially utilised the intellectual potentialities
of employees.

Evaluation of Theory X and Theory Y :- These theories are important tools in understanding the
behaviour of human. It is also helpful in designing the incentive schemes to motivate the
employees of an organisation. Of course, these two theories are not equally applicable to every
situation as well as for all type of employees. The Theory X is suitable for unskilled and
uneducated employees. On the other hand, Theory Y is suitable for skilled and educated
employees. So management should combine these theories for different types of employees.

Herzberg’s Two Factor Theory

During the late 1950’s Fredrick Herzberg, a US behavioural scientist (Psychologist) and
his associates developed two factor theory of motivation. This theory is also known as Motivation
Maintenance Theory and Motivation Hygiene Theory. According to this theory, work
dissatisfaction and satisfaction arise from two different sets of factors. These are motivational
factors and Hygiene or maintenance factors. These are described below

Motivational Factors : These factors are mostly related to the job itself. The availability of these
factors create a highly motivating situation. On the other hand, absence of these factors does not
cause dissatisfaction. According to Herzberg, there are mainly six motivational factors, such as
Achievement, Recognition, Advancement, possibility of growth and Responsibility.
Motivational factors are the primary cause of job satisfaction. The employer can increase the
performance of employees by providing these factors. These factors differ from individual to
individual.

Hygiene or Maintenance factors : Hygiene factors are mostly related to environment outside the
job. Though, the availability of hygiene factors do not significantly motivate the employees, yet
the absence of these factors cause serious dissatisfaction. These factors are necessary to maintain
a reasonable level of satisfaction among the employees. According to Herzberg, various hygiene
factors are company policies, and administration, supervision, interpersonal relationships, salary,
job security, working conditions, job status, personal life etc.

TECHNIQUES OF MOTIVATION

In human behaviour, individual need plays the role of driving force. So the management
should try to govern the behaviour of employees in satisfying their needs. Incentives are the objects
which are perceived to satisfy their needs. Individuals have both financial needs and non- financial
needs. On the basis of these two needs, management uses two different types oftechniques
for motivation. These are financial incentives and non- financial incentives.

Financial incentives

Financial incentives imply that more payment of money to the worker is an important
motivating factor. Financial incentives are also called monetary incentives These include wages,
salaries, bonus, prize, income on investment and dividend. Money has the highest exchange value.
So people can satisfy their needs through money. Of course, monetary incentives can be for the
positive work. Such as amount of money paid to increase production or to do more work.
Moreover, financial incentives may be given individually as well as collectively.

Non-financial incentives

Non-financial incentives imply all social and psychological attractions through which
workers are encouraged to do more work. Though money is an important incentive, yet workers
do not work only for money. They also want to take incentives for satisfying their social and
psychological needs. Non-financial incentives improve the workers interest in work, minimize
accidents, and create interest in organisations. Non- financial incentives may be personal,
collective and institutional.
LEADERSHIP

Leadership is a part of management and one of the most significant elements of direction.
Being a leader, the manager must lead his sub-ordinates and inspire them to achieve organisational
goals. Leadership is an abstract quality in a man and a psychological process through which a
leader tries to influence the behaviour of followers to work willingly and enthusiastically for
achieving predetermined goals. Thus, leadership acts as a driving force to get the things done by
others. According to Chester Bernard, “Leadership is the quality of behaviour of individuals
whereby they guide people or their activities in organizing efforts”.

Features of Leadership : The various features of leadership are as follows:-

 It is a continuous process of influencing the follower’s behavior rather than one-shot

activity.
 It is a personal quality of character and behaviour in man which make him fit to exert an
interpersonal influence.
 There should be a group of followers for leadership function. It is the relationship between
a leader and his followers (individuals and/or groups) which arises out of their functioning
for common goals.
 Laying down of objectives and policies for the followers, motivating them and
coordinating their efforts to accomplish the objectives all come under the umbrella of
leadership.
 The style of leadership may differ from situation to situation.
 It includes the ability to persuade others and to motivate them for working objectively to
accomplish certain specific goals.
 It is necessary to guide the followers in attaining common goals. While giving guidance,
the leader shows his feelings of recognition for the followers as well as conveys them the
importance of their works.
 It is a process through which the leader exercises an influence on the members of a group.

QUALITIES OF A GOOD LEADER

A leader to be effective must possess the following basic qualities:

 Intelligence: Intelligence means the capacity of thought and reasoning especially to a high
degree. Though intelligence is a natural quality of an individual [i.e inherent in nature, but
it is the claim of many psychologists that the level of Intelligence can be increased in an
individual through various training methods.
 Initiative and creative ability: At the time of uncertainty, a leader must function in an
orderly and purposeful manner to overcome the hurdles. People also look to the leader
during the times of uncertainty and unfamiliarity with hope.
 Power of judgment: Agood leader should have the ability to judge a thing analytically.
Keeping the main goals or objectives in focus, he is able to break down the whole situation
into manageable sub parts for closer inspection. Thus, a good leader makes a progress
towards the main goals of an organization.
 Vision and foresight: Asuccessful leader should have the capability to assess the future
environment along with its trends.And accordingly he devises his policies and programmes
with foresight based on logical programmes.
 Mental and emotional maturity: Aleader should have a high level of emotional and mental
stability. He should not be biased in any situation. He should show consistency in action
and be able to refrain from anger. He must have the capacity to adjust in all situations
importantly at the time of troublesome or difficulty
 Flexibility: According to the need under different circumstances, leadership styles varies
giving rise to three different types namely Autocratic, Democratic and Free-rein leadership
style.
 Technical competence: The leader must follow some definite principles for getting success
while leading the people. “Technical competence” of Leadership means the use of
important abilities of a leader for handling certain functions of management like planning,
organizing , analyzing, advising , decision making, controlling and winning cooperation
etc. The technical competence of leader may help him in winning his follower’s support.
 Self confidence: To be a good leader, a person must be first selfconfident who can lead and
set direction in the desired way. Such a confident leader becomes a source of
inspiration and confidence for others. Thus, the confidence of a leader helps him to draw
out the trust and best efforts of the team members to complete the tasks well.
  Human relations attitude: A successful leader should have an adequate knowledge of
human relations that means the way of dealing with human beings. Since an important job
of a leader is to get people’s voluntary and full cooperation for achieving the set goal, so
he must try to get an intimate knowledge of people and their relationship to each other.The
knowledge of human behaviour and their reaction to various situations is quite meaningful
to a leader

LEADERSHIP STYLE

Leadership style means the behavioral pattern of a leader that often reflects in his activities while
providing direction, implementing plans and motivating people.The philosophy, personality and
experiences of a leader are visible in his leadership style. It is the art or process of influencing
people for their willing participation in the combined efforts to achieve the common goals.
Basically the leadership style is categorized into three groups. But in reality it is seemed that
depending on the forces that are prevailed among the followers, the leader and the situation, a good
leader uses all the three styles based on his common sense.

 Autocratic leadership style

 Democratic leadership style
 Free-rein style

AUTOCRATIC LEADERSHIP STYLE

The leaders prefer no suggestion and initiative from the subordinates. He only gives orders
and assigns tasks to subordinates without taking their consent. This leadership style is usually used
in the following conditions, when:-

 The leader is running short on time. For example in the situations of danger and
emergencies.
 The leader has all the information to solve the problem.
 The employees of the organization have full confidence on their leader. Moreover, they are
well motivated and believe that the leader has adopted the particular style of leadership
keeping the best interest of the team in his mind. The leader requires a high level of
productivity from an inexperienced team or individual.
  The team may be placed at risk if it cannot finish the assigned task within the given time
period. It is not suggestible to use the autocratic leadership style at normal situation; rather
it should only be used on rare occasions. If you have time and want to gain more
commitment and motivation from your employees, then you should use the democratic
leadership style.

DEMOCRATIC LEADERSHIP STYLE

Here a leader gives instruction after consulting the group. However, the final decision
making authority lies with the leader.

 A leader may adopt this style when the situation is unfavourable for a team that
means the team is unlikely to meet its goals and there is only a little ray of hope. In
this case the leader and subordinates can make a try to win the game with joint
efforts.
 The situation is not serious enough as like as the autocratic leadership style.
 Considering a situation where the manager has only a part and the employees have
the other part of the information that is required to solve the task, then it is better to
use democratic leadership style.
 This approach is most common when the leader is working with a new team or a
team that is in a learning stage. Here, the leader can win the co-operation of his
group and can motivate them effectively and positively. Thus, by using this style
the number of complaints, employee’s grievances, industrial unrest and strikes can
be reduced because it allows the employees to become a part of the team for
decision making.

FREE-REIN LEADERSHIP STYLE

In this style, the leader does not lead, but leaves the group entirely to itself.

 This approach is most common with experienced team carrying out routine activities with
the ability to analyze the situation and determine what needs to be done and how to do it.
 Such leader allows maximum freedom by giving a free hand to subordinates, in deciding
their own policies and methods.
  This style benefits the self-motivated team members looking for new responsibilities and
challenges.
 Here, the leader acts as an umpire and coordinator of information. Through this leadership
style, a leader can assess the capability of his team members in performing their
responsibilities. This style is suitable when a leader has full trust and confidence in the
people below him. But it is not fair that you can blame others when things go wrong, giving
the excuse of this system.

TRAIT THEORY OF LEADERSHIP

The trait theories of leadership focus on the individual characteristic of successfulleaders.

According to the theories, leaders possess a set of traits which make them distinct from followers.
An attempt must, therefore, be made to identify and measure these traits. Attempts were indeed
made in the past to identify such qualities. Ralph Stogdill, for instance, surveyed more than 5000
leadership studies and concluded that successful leaders tend to have the following qualities.

(i) A strong desire for accomplishment

(ii) Persistent pursuit of goals
(iii) Creativity and intelligence used to solve problems
(iv) Initiative applied to social situations
(v) Self-assumed personality
(vi) Willingness to accept behavioural consequences
(vii) Low susceptibility to interpersonal stress
(viii) High tolerance of ambiguity
(ix) Ability to influence other people
(x) Ability to structure social interactions

Most of the research on leadership conducted till now concentrated mainly on the unique
qualities of Leadership of successful leaders. There has been little systematic study of the
personal traits of unsuccessful leaders. Probably ineffective leadership is associated with such
qualities as poor temperament, self centerdness, inability to get along with others, lack of
vision, lack of character and mental health problems such as aggression,
depression,disorganization, paranoia, neurosis and procrastination. In addition, some
 attitudinal factors seem to be associated with ineffective leaders. These include : (1)
overconcern with morale, (2) failure to maintain an objective attitude, (3) lack of a sense of
proportion, (4) practicing “polarization” or seeing others as either good or bad, (5) idealism
in decision making and (6) over eagerness to do the “right” things.

BEHAVIOURAL THEORIES

Beginning in the late 1940’s and continuing through the early 1960’s researchers moved
away from an emphasis on traits and towards the study of leader behaviours. This new approach
differed from the trait oriented research in at least two ways. First, actual leader behaviours instead
of personal traits were the main focus. Second, where as most trait studies sought to separate
leaders from non-leaders, leader behaviour studies wanted to determine how various kinds of
specific behaviour affect the performance and satisfaction of followers

The Ohio State University studies and the University of Michigan studies are the two important
behavioural theories. (Ohio State University Studies:) These well publicized studies were started
shortly after World War. The main objective of the studies was to identify the major dimensions
of leadership and to investigate the effect of leader behaviour on employee performance and
satisfaction. From a list of leader behaviours in a wide variety of situations, two leadership
dimensions were identified. (i) The initiating structure, which refers to leader behaviour that
defines and organises the group tasks, assigns the tasks to employees and supervises their
activities. Ohio State people. (ii) Consideration refers to leader behaviour that can be characterized
by friendliness, respect, supportiveness, openness, trust and concern for the welfare of the
employees.

Job Enrichment: The concept of job enrichment has been derived from Herzberg’s two-factor
theoryof motivation in which he has suggested that job content is one of the basic factors of
motivation. If the jobis designed in such a manner that it becomes more interesting and challenging
to the job performer andprovides him opportunities for achievement, recognition, responsibility,
advancement and growth, the jobitself becomes a source of motivation to the individual.
According to Richard W. Beatty and Graig Eric. Schneider, “Job enrichment is a motivational
techniquewhich emphasizes the need for challenging and interesting work. It suggests that jobs be
redesigned sothat intrinsic satisfaction is derived from doing the job. In its
best applications it leads to a verticallyenhanced job by adding function from other organizational
levels, making it contain more variety andchallenge and offer autonomy and pride to the
employee.”
According to P. Robbins, “Job enrichment refers to the vertical expansion of the jobs. Itincreases
thedegree to which the worker controls the planning, execution and evaluation of his work.”
Techniques of Job Enrichment: In order to enrich the jobs. The management should adopt the
followingmeasures:
 Freedom in decisions
 Assign a natural work unit to an employee.
 Encouraging participation
 Allow the employee to set his own standards of performance.
 Minimize the controls to provide freedom to the employees
 Make an employee directly responsible for his performance.
 Encourage participation of employees in deciding organizational goals and policies.
 Expand job vertically
 Introducing new, difficult and creative tasks to the employees.
 Sense of achievement.
Advantages of Job Enrichment: The advantages of job enrichment are as follows:
 It enriches the role.Job enrichment is the most widely used of job design as it provides
ameaningful learning toemployees.
 It makes the work interesting and employee get motivated.
 It helps in reducing the rate of labour turnover and absenteeism.
 It increases skills of the employees.
 It increases morale and performance.
 Reduce Boredom and dissatisfaction.
 Increase in output both qualitative and quantitative.
Disadvantages of Job Enrichment: Dunham and Newstrom state, “Even the strongest supporters
ofjob enrichment readily admit that there are limitations in its application.” Newstrom and Keith
Davis alsowrite, “Employees are the final judges of what enriches their jobs. All that
management can do is to gatherinformation about what tends to enrich jobs, try these changes in
the job system, and then determinewhether employees feel that enrichment has occurred.” A few
limitations of or problems with job enrichmentare as follows:
 Increase cost
 Need more employee counseling, training, and guidance.
 Not applicable to all jobs.
 Negative impact on personnel.
 Imposed on people.
 Objected by unions
 Pay dissatisfaction

JOB SATISFACTION:

Job satisfaction is the most frequently measured organisational variable in both research and
applied settings. There are multiple reasons for interest in this work attitude.

First, organisations and researchers are interested in simply assessing the current state of employee
job satisfaction. They are often concerned with employee well-being and psychological health,
and some form of job satisfaction measurement is therefore included in employee opinion surveys.

Second, understanding the influences on job satisfaction is important for improving organisational
functioning. Significant lines of research have therefore focused on the role of personal, work-
related and organisational variables in job satisfaction.

Third, job satisfaction has important implications for work outcomes within an organisation.
Interest has thus been in the empirical examination of job satisfaction and its relationship with
such outcomes as performance, withdrawal behaviours, organisational citizenship behaviours and
other work behaviours.

ANTECEDENTS OF JOB SATISFACTION: Various studies have examined the antecedents

or predictors of job satisfaction. Two distinct models of job satisfaction are apparent in these
studies. The first model focuses on personal characteristics such as age, years of service, gender,
occupational rank, educational level, personality and cultural factors. The second model places
emphasis on the individual’s work situation including the nature of the work, pay, promotional
opportunities, supervisor, work group and working conditions.