Unit-1

Introduction to Human Resource Management

Organization: A group consisting of people with formally assigned roles who work together to
achieve the organization's goals. Manager: Someone who is responsible for accomplishing the
organization's goals and who does so by managing the efforts of the organizations people

Most writers agree that managing involves performing five basic functions: planning, organizing,
staffing, leading, and controlling. In total, these functions represent the management process.
Some of the specific activities involved in each function include:
● Planning. Establishing goals and standards; developing rules and procedures; developing
plans and forecasts
● Organizing. Giving each subordinate a specific task; establishing departments; delegating
authority to subordinates; establishing channels of authority and communication;
coordinating the work of subordinates
● Staffing. Determining what type of people should be hired; recruiting prospective
employees; selecting employees; setting performance standards; compensating
employees; evaluating performance; counseling employees; training and developing
employees
● Leading. Getting others to get the job done; maintaining morale; motivating subordinates
● Controlling. Setting standards such as sales quotas, quality standards, or production
levels; checking to see how actual performance compares with these standards; taking
corrective action as needed

Personnel management
- is that part of management concerned with people at work and their relationship with the
organization.
- It seeks to bring together men and women who make up an enterprise, enabling each to
make his own best contribution to its success, both as an individual and as a member of a
working group.
- It is the planning, organizing, directing and controlling of the procurement, development
compensation, integration, maintenance and separation of human resources to the end
that individual, organizational and societal objectives are accomplished”.
- Edwin B. Flippo. ‘it is that filed of management which has to do with planning,
organizing, and controlling the functions of procuring, developing, maintaining and
utilizing a labour force such as that the:
a. objectives for which the company is established are effectively,
b. objectives of all levels of personnel are served to the highest possible degree,
c. objectives of the society are duly considered and served
Human resource management (HRM) is the process of acquiring, training, appraising, and
compensating employees, and of attending to their labor relations, health and safety, and fairness
concerns. It focuses on the concepts and techniques every manager needs to perform the
“people” or personnel aspects of management. These include:
● Conducting job analysis (determining the nature of each employee’s job).
● Planning labor needs and recruiting job candidates.
● Selecting job candidates.
● Orienting and training new employees.
● Managing wages and salaries (compensating employees).
● Providing incentives and benefits.
● Appraising performance.
● Communicating (interviewing, counseling, disciplining).
● Training employees, and developing managers.
● Building employee relations and engagement

Managers’ also need to avoid personal mistakes

● To have employees not performing at peak capacity.
● To hire the wrong person for the job
● To experience high turnover.
● To find employees not doing their best.
● To have company to taken to court because of your discriminatory actions
● To allow a lack of training to undermine your department's effectiveness.
● To commit any unfair labour practices

HR and the Manager’s Human Resource Philosophy

● Technical expertise is important, but at the end of the day, people’s actions are always
based in part on the basic assumptions they make, and this is especially true in regard to
human resource management.
● The basic assumptions you make about people together comprise your philosophy of
human resource management. And every personnel decision you make—the people you
hire, the training you provide, your leadership style, and the like—reflects (for better or
worse) this basic philosophy.
● There’s no doubt that you will bring to your job an initial philosophy based on your
experiences, education, values, assumptions, and background. But your philosophy
doesn’t have to be set in stone. It should evolve as you accumulate knowledge and
experiences.
● In any case, no manager should manage others without first understanding the personnel
philosophy that is driving his or her actions
 ● One of the things molding your own philosophy is that of your organization’s top
management. While it may or may not be stated, it is usually communicated by the
managers’ actions and permeates every level and department in the organization.

Role of HR managers:
HR manager should be able to exhibit:
● Leadership & Navigation The ability to direct and contribute to initiatives and processes
within the organization.
● Ethical Practice The ability to integrate core values, integrity, and accountability
throughout all organizational and business practices.
● Business Acumen The ability to understand and apply information with which to
contribute to the Organization’s strategic plan.
● Relationship Management The ability to manage interactions to provide service and to
support the organization.
● Consultation The ability to provide guidance to organizational stakeholders.
● Critical Evaluation The ability to interpret information with which to make business
decisions and recommendations.
● Global & Cultural Effectiveness The ability to value and consider the perspectives and
backgrounds of all parties.
● Communication The ability to effectively exchange information with stakeholders.

Changing environments of HRM

1. Economic and Technological change
○ Several economic changes have occurred that have altered employment and
occupational patterns in the United States.
○ A major change is the shift of jobs from manufacturing and agriculture to service
industries and telecommunications.
○ Finally, the explosive growth of information technology, particularly that linked to
the Internet, has forced many changes throughout organizations of all types.
2. Workforce Availability and Quality concerns
○ This evolution has resulted in the identification of three different types of quality.
○ These are process quality (which concerns reliably producing a required output),
product quality (which seeks conformance with technical requirements) and
benefit quality (which is concerned with meeting customer requirements).
○ Benefit quality is the one that organizations consider to be the most important.
3. Demographics and Diversity issues
○ Demographic changes relate to gender, ethnicity, age, occupation, religion and
workforce.
○ Pfeffer (1985, p. 303) defined employee demography as “the study of the
composition of a social entity in terms of its members attributes”.
 ○ The demographic factors have reflective influence and a major impact on
operations of human resource management.
○ Employees have become progressively more diverse, and this has forced
industries to make substantial changes to the methods in which they approach
management of employees.
4. Organizational Restructuring
○ Organizational Restructuring is when a company's business model has changed
due to internal or external factors and needs to adapt in order to survive and
ultimately grow. This may result in a downsize, upsize or reshuffle of staffing
requirements.
○ It involves: communication with stakeholders, managing employee productivity,
retaining critical employees, managing payroll and records.
5. Outsourcing
○ Outsourcing is the business practice of hiring a party outside a company to
perform services and create goods that traditionally were performed in-house by
the company's own employees and staff.
○ Outsourcing is a practice usually undertaken by companies as a cost-cutting
measure.
○ HR outsourcing, though a highly outsourced service often comes with its own set
challenges for organizations who opt for it.
○ Hence, it is important for an organization to analyze and balance the issues vs. the
benefits before signing up with an Outsourcing partner.

Line and Staff Aspects of Human Resource Management

Authority is the right to make decisions, to direct the work of others, and to give orders.
Managers usually distinguish between line authority and staff authority.

1. Line authority creates a superior (order giver)–subordinate (order receiver) relationship.

In organizations, line authority traditionally gives managers the right to issue orders to
other managers or employees. When the vice president of sales tells her sales director to
“get the sales presentation ready by Tuesday,” she is exercising her line authority. On the
organization chart, managers with line authority are line managers.
2. Staff authority gives a manager the right to advise other managers or employees. It
creates an advisory relationship. When the human resource manager suggests that the
plant manager use a particular selection test, he or she is exercising staff authority. Those
with staff (advisory) authority are staff managers.
 3. In popular usage, people tend to associate line managers with managing departments (like
sales or production) that are crucial for the company’s survival. Staff managers generally
run departments that are advisory or supportive, like purchasing and human resource
management. Human resource managers are usually staff managers. They assist and
advise line managers in areas like recruiting, hiring, and compensation.

Line Managers Human Resource Duties

1. Placing the right person in the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining departmental morale
10. Protecting employees’ health and physical conditions

A typical structure of modern day HR Department

Examples of various job duties include:
1. Recruiters: Maintain contacts within the community and perhaps travel extensively to
search for qualified job applicants.
2. Equal employment opportunity (EEO) representatives or affirmative action
coordinators: Investigate and resolve EEO grievances, examine organizational practices
for potential violations, and compile and submit EEO reports.
3. Job analysts: Collect and examine detailed information about job duties to prepare job
descriptions.
4. Compensation managers: Develop compensation plans and handle the employee
benefits program.
5. Training specialists: Plan, organize, and direct training activities.
6. Labor relations specialists: Advise management on all aspects of union– management
relations.

Trends in HRM
Working cooperatively with line managers, human resource managers have long helped
employers hire and fire employees, administer benefits, and conduct appraisals.
However, trends are occurring in the environment of human resource management that are
changing how employers get their human resource management tasks done.

These trends include:

1. Workforce Trends:
● The composition of the workforce will continue to change over the next few
years; specifically, it will continue to become more diverse with more women,
minority group members, and older workers in the workforce
● Many employers call “the aging workforce” a big problem. The problem is that
there aren’t enough younger workers to replace the projected number of baby
boom–era older workers (born roughly 1946–1964) retiring.
● Other firms are shifting to nontraditional workers. Nontraditional workers are
those who hold multiple jobs, or who are “temporary” or part-time workers, or
those working in alternative arrangements.
● Millennials also bring a vast array of skills. They’ve grown up with social media
and are expert at collaborating online.
2. Trends in how people work
● work has shifted from manufacturing jobs to service jobs
● On demand workers: On-demand workers work in a flexible, zero-hours
environment. They are freelancers and independent contractors who work when
they can on what they want to work on, when the company needs them. Example:
Uber drivers
 ● Human Capital: puts emphasis on the workers’ knowledge, education, training,
skills, and expertise
● Nearly 60% of employees want to work remote full-time after the pandemic,
according to one survey.
● Two-thirds of employees value when their feedback is heard and acted on.
3. Globalization Trends
● Globalization refers to companies extending their sales, ownership, and/or
manufacturing to new markets abroad.
● Free trade areas—agreements that reduce tariffs and barriers among trading
partners—further encourage international trade. The North American Free Trade
Agreement (NAFTA) and the European Union (EU) are examples
● Globalization has vastly increased international competition. More globalization
meant more competition, and more competition meant more pressure to be “world
class”—to lower costs, to make employees more productive, and to do things
better and less expensively.
● As multinational companies jockey for position, many transfer operations abroad,
not just to seek cheaper labor but to tap into new markets
● Managing the “people” aspects of globalization is a big task for any company that
expands abroad—and for its HR managers
4. Economic Trends
● These have been changing drastically over the years.
● Unemployment has been on the rise as many governments stripped away rules
and regulations
● Labor force trends: This also impacts the economic concerns as the labor force is
growing slowly in several companies. Many global companies rank “talent
management”—the acquisition, development and retention of talent to fill the
companies’ employment needs as their top concern.
● Ensuring employees have the skills they need is a top priority among business
leaders.
● Unbalanced labor force: in some occupations (such as high-tech) unemployment
rates are low, while in others unemployment rates are still very high; recruiters in
many companies can’t find candidates, while in others there’s a wealth of
candidates; and many people working today are in jobs “below” their expertise
● In the face of mental health adversity, companies respond by providing resources,
cutting costs and taking other measures to support well-being.
5. Technology Trends
● However, it may be technology that most characterizes the trends shaping human
resource management today
● Technology adoption and deployment is a priority as companies seek to unify
dispersed, digital-first workforces.
 ● Data will be the new currency and a core part of how HR operates in the coming
years.
● Five main types of digital technologies are driving this transfer of functionality
from HR professionals to automation.
a. Social media to hire new employees
b. mobile applications to monitor employee location and to provide digital
photos at the facility clock-in location to identify workers
c. feedback, fun, and objectives inherent in gaming support many new
training applications and websites
d. Cloud computing and more intuitive user interfaces enable employers to
monitor and report on things like a team’s goal attainment and to provide
real-time evaluative feedback.
e. Data analytics using statistical techniques, algorithms, and
problem-solving to identify relationships among data for the purpose of
solving particular problems
● Technological change is also affecting the nature of jobs

HR Trends for 2021: Future of HRM

1. Virtual work
● From government-mandated lockdowns to companies shifting to a full-time
work-from-home model wherever possible, the way work gets done changed
drastically.
● Focus on an increasingly remote, digital work environment
2. Digitization
● Given the shift to a workplace that’s increasingly virtual and more disconnected
from an office, another trend we expect to see is a focus on what’s been termed
“digital-first work”. This has far-reaching implications, as companies seek to
determine how this new era will shape their culture and values.
● Digital HR is about process optimization in which social, mobile, analytics and
cloud-based technologies are leveraged to make the HR function more efficient.
● However, the application of new technologies is not what makes the function
digital. It’s also about culture alignment, talent practices, structures and processes
to balance efficiency and innovation opportunities, all focused on ensuring there
is an ability to provide a clear, sustainable, measurable impact on the organization
as it continuously transforms.
3. Building Teams
● The concept and creation of virtual teams that goes along with virtual work will
become a huge issue moving into 2021
● A superteam combines people and technology to produce outcomes more quickly
and at a greater scale than would otherwise be possible.
 ● Focus is on employees training, communication, development of bonds, and
performance evaluation practices.
4. HR design as a strategic focus
● Shaping the design of the new organization of the future.
● Designing the new and re-shaped jobs that new working practices and automation
will demand.
● Identifying the new capabilities and requirements that the new world of work will
make upon the workforce, its managers and its leaders in terms of behavioral and
technical demands.
● This means that some of the old techniques that don’t seem to be a part of the
regular HR toolkit (such as organizational design, job design, scenario planning,
etc.) need to be revisited and HR practitioners reskilled as necessary,
5. Employee experience is redefined
● Focusing on the experience that employees have with the company, much as a
brand focuses on the customer experience, can: Boost productivity, Improve
satisfaction, Lead to greater employee loyalty and Encourage investment in the
company’s vision
● The link between the rise of automation and the employee experience is being
made to provide personalized solutions and information for the workforce in a
cost-effective and sustainable way. HR will need to focus on those critical HR
practices and understand how they can be improved and made more relevant for
the workforce of tomorrow,
6. HR delivers value through an outside/in approach
● The outside-in wave moves from value creation to value delivery when HR
‘customers’ are not just employees, leaders or business strategies inside the
organization but also stakeholders such as customers, investors (debt or equity),
and communities outside the company. HR value delivery is captured when HR
analytics are not about activities with scorecards, dashboards and insights but
about the impact of HR activities on key stakeholders
● Talent: “[Traditional] talent-related efforts can evolve to be viewed outside-in to
respond to changing times by ensuring that the right competencies are those that
deliver customer and investor value, and by linking employee experience to
customer experience.”
● Organization: “Research found that the capabilities of an organization have four
times the impact on business results than the competence of individuals. For
example, teams with individuals who work well together as a team will
outperform a team of individual all-stars that don’t work well together.”
 ● Leadership: “Employees often mimic what their leaders do, and organization
capabilities often reflect leaders’ personalities. More importantly, leadership at all
levels of the organization signals thoughts and actions that get attention. In the
current uncertain world, it is more important than ever to ensure that the right
leadership exists to create value for customers and investors.”
7. Mental health gets the attention it deserves
● 35% of employees surveyed experienced depression symptoms often, while 41%
reported work burnout and 45% said they felt “emotionally drained from their
work.
● We’re living in unprecedented times. It should come as no surprise that the stress
and uncertainty facing vast amounts of the population have taken a toll. As
organizations scrambled to react to a crisis that was beyond their control, it thrust
well-being forward as a factor that couldn’t be ignored.
8. Data becomes the new currency
● Data shows how successful HR practices are in adding value at the strategic or
business level.
● data allows HR to identify ways to enhance practices and the employee
experience.
● it enables HR to show how its various functions align with related strategies and
commercial demands.
9. DEI (diversity, equality, inclusion) receives major focus
● Matters of diversity and inclusion have become part of the conversation as HR
professionals seek to address bias, unfair wages and other problems.
10. Workers are equipped with the skills and tools they need to navigate uncertainty
● The new frontier of the talent war, prompted by the pandemic, will hone in on
empowering employees with the tools they need to gain the skills they need,
rather than simply attracting top talent from outside the organization to fill
vacancies.
● One way companies can cope with this new normal, according to Bersin’s report,
is to emphasize internal talent development and mobility. His research has found
that reinventing job roles and quickly redeploying workers have the greatest
impact.
11. HR offers guidance to drive success
● shifts thinking about and actions in organizations from being descriptive to
prescriptive.
● an OGS (organisation guidance system) identifies desired outcomes related to
four spheres that are critical to business success: talent, organization, leadership
and human resources.
 ● HR’s opportunity to create value through targeted organization effectiveness
initiatives in talent, leadership, organization and HR can now be realized. A
portfolio approach to these initiatives will better allocate resources (time, energy,
money) to key organization effectiveness priorities.
12. Companies show their true colors
● The pandemic, social justice causes and economic difficulties cast a spotlight onto
companies, and everything discussed thus far circles back to the matter of how
organizations have and will respond as the journey into an uncertain future
unfolds. Values, priorities, culture and more will solidify or emerge, depending on
how businesses react to things.

The Management Planning Process

● The basic management planning process consists of five steps: setting objectives, making
basic planning forecasts, reviewing alternative courses of action, evaluating which
options are best, and then choosing and implementing your plan.
● A plan shows the course of action for getting from where you are to the goal. Planning is
always “ goal-directed”
● In companies, it is traditional to view the goals from the top of the firm down to front-line
employees as a chain or hierarchy of goals.
- At the top, the president sets long-term or “strategic” goals
- Vice presidents then set goals for their units that flow from, and make sense in
terms of accomplishing, the president’s goal
- Then their own subordinates set goals, and so on down the chain.
● Policies and procedures provide day-to-day guidance employees need to do their jobs in a
manner that is consistent with the company’s plans and goals.
- Policies set broad guidelines delineating how employees should act. For example,
“It is the policy of this company to comply with all laws, regulations, and
principles of ethical conduct.”
- Procedures spell out what to do if a specific situation arises.
● Employers write their own policies and procedures, or adapt ones from existing sources.
For example, most employers have employee manuals listing the company’s human
resource policies and procedures.

Strategic human resource management

Strategic Planning
● A strategic plan is the company’s overall plan for how it will match its internal strengths
and weaknesses with its external opportunities and threats in order to maintain a
competitive position.
 ● The strategic planner asks, “Where are we now as a business, and where do we want to
be?” He or she then formulates a strategic plan to help guide the company to the desired
destination.
● Strategic management is the process of identifying and executing the organization’s
strategic plan by matching the company’s capabilities (strengths and weaknesses) with
the demands of its environment (its competitors, customers, and suppliers, for instance)

Strategic management process

1. Ask “What business are we in now?”

2. evaluate the firm’s internal and external strengths, weaknesses, opportunities, and threats,
3. formulate a new business direction,
4. decide on strategic goals
5. choose specific strategies or courses of action
6. Implement the strategic plan
7. Evaluate the strategic plan

Types of strategy
Corporate strategy
For any business, the corporate strategy answers the question, “What businesses will we be in?”
Specifically, the corporate-level strategy identifies the portfolio of businesses that, in total,
comprise the company and how these businesses relate to each other.
Concentration (single-business) corporate strategy, the company offers one product or product
line, usually in one market.
WD-40 Company is one example. With one spray lubricant its product scope is narrow. A
diversification corporate strategy means the firm will expand by adding new product lines.
PepsiCo is diversified. Thus, PepsiCo added Frito-Lay chips and Quaker Oats to its drinks
businesses. Here product scope is wider.
A vertical integration strategy means the firm expands by, perhaps, producing its own raw
materials, or selling its products directly. Thus, Apple opened its own Apple stores. With a
consolidation strategy, the company reduces its size. With geographic expansion, the company
grows by entering new territorial markets, for instance, by taking the business abroad.

Competitive strategy
A competitive strategy identifies how to build and strengthen the business unit’s long-term
competitive position in the marketplace.8 It shows, for instance, how Pizza Hut will compete
with Papa John’s, or how Walmart will compete with Target. Managers build their competitive
strategies around their businesses’ competitive advantages. Competitive advantage means any
factors that allow a company to differentiate its product or service from those of its competitors
to increase market share.
Cost leadership means becoming the low-cost leader in an industry. Walmart is an example. With
differentiation, the firm seeks to be unique in its industry along dimensions that are widely
valued by buyers.10 Thus, Volvo stresses the safety of its cars, and Papa John’s stresses fresh
ingredients. Focusers carve out a market niche (like Bugatti cars). They offer a product or service
that their customers cannot get from generalist competitors (such as Toyota).
Functional Strategy
Each department should operate within the framework of its business’s competitive strategy.
Functional strategies identify what each department must do to help the business accomplish its
strategic goals. Thus, for, say, P&G to make its Oil of Olay products a top-tier brand, its product
development, production, marketing, sales, and human resource departments must engage in
activities that are consistent with this unit’s high-quality mission.

What Is Strategic Human Resource Management?

● Every company’s human resource management policies and activities should make sense
in terms of the firm’s strategic aims.
● Strategic human resource management means formulating and executing human resource
policies and practices that produce the employee competencies and behaviors the
company needs to achieve its strategic aims.
- First, the manager formulates strategic plans and goals.
- Next, he or she asks, “What employee skills and behaviors will we need to
achieve these plans and goals?”
- And finally, he or she asks, “Specifically what recruitment, selection, training, and
other HR policies and practices should we put in place so as to produce the
required employee skills and behaviors?”
 Unit 2
Recruitment & Selection

Human Resource Planning

● To ensure the appropriate personnel are available to meet the requirements set during the
strategic planning process, HR managers engage in employment planning.
● The purpose of this planning effort is to determine what HRM requirement exists for
current and future supplies demands of the workplace.

Talent Management
Managers traditionally view these activities as a series of steps:
1. Decide what positions to fill, through job analysis, personnel planning, and forecasting.
2. Build a pool of job applicants, by recruiting internal or external candidates.
3. Obtain application forms and perhaps have initial screening interviews.
4. Use selection tools like tests, interviews, background checks, and physical exams to identify
viable candidates.
5. Decide to whom to make an offer.
6. Orient, train, and develop employees so they have the competencies to do their jobs.
7. Appraise employees to assess how they’re doing.
8. Compensate employees to maintain their motivation.

We will define talent management as the holistic, integrated and results and goal-oriented
process of planning, recruiting, selecting, developing, managing, and compensating employees.

Job Analysis
Job analysis is the procedure through which you determine the duties of the company’s positions
and the characteristics of the people to hire for them.
Job analysis produces information for writing job descriptions (a list of what the job entails) and
job (or “person”) specifications (what kind of people to hire for the job).
It’s the detailed and systematic study of jobs to know the nature and characteristics of the
people to be employed for each job.

Nature and use of job analysis

The supervisor or human resources specialist normally collects one or more of the following
types of information via the job analysis:
1. Work activities. Information about the job’s actual work activities, such as cleaning,
selling, teaching, or painting. This list may also include how, why, and when the worker
performs each activity.
 2. Human behaviors. Information about human behaviors the job requires, like sensing,
communicating, lifting weights, or walking long distances.
3. Machines, tools, equipment, and work aids. Information regarding tools used,
materials processed, knowledge dealt with or applied (such as finance or law), and
services rendered (such as counseling or repairing).
4. Performance standards. Information about the job’s performance standards (in terms of
quantity or quality levels for each job duty, for instance).
5. Job context. Information about such matters as physical working conditions, work
schedule, incentives, and, for instance, the number of people with whom the employee
would normally interact.
6. Human requirements. Information such as knowledge or skills (education, training,
work experience) and required personal attributes (aptitudes, personality, interests).

Uses of Job Analysis REP CT

Job analysis is important because it supports just about all human resource management
activities.
● Recruitment and Selection Information about what duties the job entails and what
human characteristics are required to perform these duties helps managers decide what
sort of people to recruit and hire.
○ What you need to do ▫
○ What skills you need to have ▫
○ Matching the job requirement with skills employees must have
● Training and Recruitment- every job needs a particular skill so that employees must be
trained accordingly.
● Job Evaluation: measuring the worth of the jobs. Higher the worth higher the salary
● Performance Appraisal A performance appraisal compares each employee’s actual
performance with his or her duties and performance standards. Managers use job analysis
to learn what these duties and standards are.
● Job design job analysis helps in designing and redesigning of jobs based on work
specialization, work improvement etc.
● Compensation Compensation (such as salary and bonus) usually depends on the job’s
required skill and education level, safety hazards, degree of responsibility, and so on—all
factors you assess through job analysis.
● Training The job description lists the job’s specific duties and requisite skills—thus
pinpointing what training the job requires
Conduction of JA
There are six steps in doing a job analysis of a job, as follows.

Step 1: Decide How You Will Use the Information

- Some data collection techniques—like interviewing the employee—are good for writing
job descriptions.
- Other techniques, like the position analysis questionnaire we describe later, provide
numerical ratings for each job; these can be used to compare jobs for compensation
purposes.

Step 2: Review Relevant Background Information About the Job, Such as Organization
Charts and Process Charts
- It is important to understand the job’s context. For example, organization charts show the
organization's wide division of work, and where the job fits in the overall organization.
Workflow Analysis
- Reviewing the organization chart, process chart, and job description helps the manager
identify what a job’s duties and demands are now.
- Workflow analysis is a detailed study of the flow of work from job to job in one
identifiable work process (such as processing a mortgage application). In turn, this
analysis may lead to changing or “reengineering” the job. The accompanying HR as a
Profit Center feature illustrates workflow analysis.
- In conducting a workflow analysis, the manager may use a flow process chart; this lists
in order each step of the process.
- The manager may convert this step-by-step flow process chart into a diagrammatic
process chart. This shows, with arrows and circles, each step in the process.
Business Process Reengineering
- Business process reengineering means redesigning business processes, usually by
combining steps, so that small multifunction teams, often using information technology,
do the jobs formerly done by a sequence of departments.
- The basic reengineering approach is to
1. Identify a business process to be redesigned (such as processing an insurance claim)
2. Measure the performance of the existing processes
3. Identify opportunities to improve these processes
4. Redesign and implement a new way of doing the work
5. Assign ownership of sets of formerly separate tasks to an individual or a team
who use new computerized systems to support the new arrangement

Job Redesign
- Experts typically suggest three ways to redesign specialized jobs to make them more
challenging.
 1. Job enlargement means assigning workers additional same-level activities. Thus,
the worker who previously only bolted the seat to the legs might attach the back
too.
2. Job rotation means systematically moving workers from one job to another.
3. Job enrichment means redesigning jobs in a way that increases the opportunities
for the worker to experience feelings of responsibility, achievement, growth, and
recognition—and therefore more motivation. It does this by empowering the
worker—for instance, by giving the worker the skills and authority to inspect the
work, instead of having supervisors do that.

Step 3: Select Representative Positions

- With a job to analyze, the manager then generally selects a sample of positions to focus
on. For example, to analyze an assembler’s job, it is usually unnecessary to analyze the
jobs of all the firm’s 200 assembly workers; instead a sample of 10 jobs will do.

Step 4: Actually Analyze the Job

- The actual job analysis involves greeting each job holder; briefly explaining the job
analysis process and the participants’ roles in this process
- Spending about 15 minutes interviewing the employee to get agreement on a basic
summary of the job
- Identifying the job’s broad areas of responsibility, such as “calling on potential clients”;
and then interactively identifying specific duties/tasks within each area using one of the
methods we describe just below.

Step 5: Verify the Job Analysis Information with the Worker Performing the Job and with
His or Her Immediate Supervisor
- This will help confirm that the information (for instance, on the job’s duties) is factually
correct and complete and help to gain their acceptance.

Step 6: Develop a Job Description and Job Specification

- The job description lists the duties, activities, and responsibilities of the job, as well as its
important features, such as working conditions.
- The job specification summarizes the personal qualities, traits, skills, and background
required for getting the job done.

Methods of job analysis

1. Interviews
a. Job analysis interviews range from unstructured (“Tell me about your job”) to highly
structured ones containing hundreds of specific items to check off.
 b. Managers may conduct individual interviews with each employee, group interviews with
groups of employees who have the same job, and/or supervisor interviews with one or
more supervisors who know the job.
c. Structured Interviews Many managers use questionnaires to guide the interview. It
includes questions regarding matters like the general purpose of the job; supervisory
responsibilities; job duties; and education, experience, and skills required
d. Pros and cons The interview’s wide use reflects its advantages. It’s a simple and quick
way to collect information. Distortion of information is the main problem.
e. Job analysis often precedes changing a job’s pay rate. Employees therefore may
legitimately view it as pay-related, and exaggerate some responsibilities while
minimizing others.

2. Questionnaire
a. Having employees fill out questionnaires to describe their job duties and responsibilities
is another good way to obtain job analysis information.
b. Some questionnaires are structured checklists. At the other extreme, the questionnaire
may simply ask, “describe the major duties of your job.

3. Observations
a. Direct observation is especially useful when jobs consist mainly of observable physical
activities—assembly-line worker and accounting clerk are examples.
b. However, observation is usually not appropriate when the job entails a lot of mental
activity (lawyer, design engineer). Nor is it useful if the employee only occasionally
engages in important activities, such as a nurse who handles emergencies.
c. Reactivity—the worker’s changing what he or she normally does because you are
watching—is another problem

4. Participant Diary/Logs
a. Another method is to ask workers to keep a diary/log; here for every activity engaged in,
the employee records the activity (along with the time) in a log.
b. Some firms give employees pocket dictating machines and pagers. Then at random times
during the day, they page the workers, who dictate what they are doing at that time.

Job Descriptions
The most important product of job analysis is the job description. A job description is a written
statement of what the worker actually does, how he or she does it, and what the job’s working
conditions are. You use this information to write a job specification; this lists the knowledge,
abilities, and skills required to perform the job satisfactorily
There is no standard format for writing a job description. However, most descriptions contain
sections that cover:
1. Job identification- The job identification section (on top) contains several types of
information. The job title specifies the name of the job, such as supervisor of data processing
operations, or inventory control clerk.

2. Job summary- The job summary should summarize the essence of the job, and include only its
major functions or activities.

3. Responsibilities and duties- This is the heart of the job description. It should present a list of
the job’s significant responsibilities and duties. List each of the job’s major duties separately, and
describe it in a few sentences. In the figure, for instance, the job’s duties include “achieve
quantitative sales goals ...” and “determine sales priorities....”

4. Authority of the incumbent - This describes the job of the authority which calls the jobholder.
It is dependent on the people having the authority that can make the decision, develop activities
and can direct someone to do their position work. For the example, every company have their
one person who have the authority to control the company and have the power to make the
organizations

5. Standards of performance - This can be identified that the employee has provided the major
duty and the good behavior which is the standard performance in their job. Not only that, their
performance with a standard can mean that the job is complete and has the result of satisfaction.

6. Working conditions - The job description may also list the job’s working conditions, such as
noise level, hazardous conditions, or heat

7. Job specification - The job specification takes the job description and answers the question,
“What human traits and experience are required to do this job effectively?” It shows what kind of
person to recruit and for what qualities you should test that person. It may be a section of the job
description, or a separate document

Job Redesign
Job design is the process of Work arrangement (or rearrangement) aimed at reducing or
overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic
tasks.
1. Job enlargement means assigning workers additional same-level activities. Thus, the
worker who previously only bolted the seat to the legs might attach the back too.
2. Job rotation means systematically moving workers from one job to another.
 3. Job enrichment means redesigning jobs in a way that increases the opportunities for the
worker to experience feelings of responsibility, achievement, growth, and
recognition—and therefore more motivation. It does this by empowering the worker—for
instance, by giving the worker the skills and authority to inspect the work, instead of
having supervisors do that.
4. Job Simplification The Job Simplification means breaking the job into relatively easier
sub-parts with the intention to enhance the individual’s productivity by minimizing the
physical and mental efforts required to perform a complex job.

Job Specification
The job specification takes the job description and answers the question, “What human traits and
experience are required to do this job effectively?” It shows what kind of person to recruit and
for what qualities you should test that person.

1. Specifications for Trained versus Untrained Personnel

Writing job specifications for trained and experienced employees is relatively
straightforward. Here job specifications tend to focus on factors such as length of
previous service, quality of relevant training, and previous job performance. The
problems are more complex when you’re filling jobs with untrained people (with the
intention of training them on the job). Here you must specify qualities such as physical
traits, personality, interests, or sensory skills that imply some potential for performing the
job or for trainability.

2. Specifications Based on Judgment

Most job specifications simply reflect the educated guesses of people like supervisors and
human resource managers. In any case, use common sense. Don’t ignore the behaviors
that may apply to almost any job but that might not normally surface through a job
analysis. Industriousness is an example. Who wants an employee who doesn’t work hard?

3. Job Specifications Based on Statistical Analysis

Basing job specifications on statistical analysis rather than only judgment is the more
defensible approach, but it’s also more difficult. The aim here is to determine statistically
the relationship between (1) some predictor (human trait such as height, intelligence, or
finger dexterity), and (2) some indicator or criterion of job effectiveness, such as
performance as rated by the supervisor.

The recruiting and selecting process can be envisioned as a series of hurdles as:
1. Decide what positions to fill, through workforce/personnel planning and forecasting.
2. Build a pool of candidates for these jobs, by recruiting internal or external candidates.
 3. Have candidates complete application forms and perhaps undergo initial screening
interviews.
4. Use selection tools like tests, background investigations, and physical exams to screen
candidates.
5. Decide who to make an offer to, by having the supervisor and perhaps others interview
the candidates.

Employment planning and forecasting

Workforce (or employment or personnel) planning is the process of deciding what positions the
firm will have to fill, and how to fill them. Its aim is to identify and address the gaps between the
employer’s workforce today, and its projected workforce needs. Workforce planning should
precede recruitment and selection.

1. Forecasting Personnel Needs (Labor Demand)

● A firm’s future staffing needs reflect demand for its products or services, adjusted for
changes the firm plans to make in its strategic goals and for changes in its turnover rate
and productivity.
● Forecasting workforce demand therefore starts with estimating what the demand will be
for your products or services
● Trend Analysis Trend analysis means studying variations in the firm’s employment
levels over the past few years. For example, compute the number of employees at the end
of each of the last 5 years in each subgroup (like sales, production, secretarial, and
administrative) to identify trends.
● Ratio Analysis Another simple approach, ratio analysis, means making forecasts based
on the historical ratio between (1) some causal factor (like sales volume) and (2) the
number of employees required (such as number of salespeople)
 ● The Scatter Plot A scatter plot shows graphically how two variables—such as sales and
your firm’s staffing levels—are related. If they are, then if you can forecast the business
activity (like sales), you should also be able to estimate your personnel needs.

● Managerial Judgement Few historical trends, ratios, or relationships will continue

unchanged into the future. Judgment is thus needed to adjust the forecast. Important
factors that may modify your initial forecast of personnel requirements include decisions
to upgrade quality or enter into new markets; technological and administrative changes
resulting in increased productivity; and financial resources available, for instance, a
projected budget crunch.

[Link] the Supply of Inside Candidates

● The main task here is determining which current employees are qualified or trainable for
the projected openings.
● Department managers or owners of smaller firms can use manual devices to track
employee qualifications .
- For example, you can create your own personnel skills inventory and
development record form.
- For each current employee, list the person’s skills, education, company-sponsored
courses taken, career and development interests, languages, desired assignments,
and other relevant experiences.
● Personnel replacement charts: They show the present performance and promotability for
each position’s potential replacement. As an alternative, with a position replacement
card you create a card for each position, showing possible replacements as well as their
present performance, promotion potential, and training.
● Larger firms obviously can’t track the qualifications of hundreds or thousands of
employees manually. They therefore computerize this information, using various
packaged software systems such as Survey Analytics’s Skills Inventory Software.
 ● Skills inventory systems enables employers to collect and compile employee skills
information in real time via online employee surveys. It helps management anticipate
staffing and skills shortages, and facilitate workforce planning, recruitment, and training.
● Markov analysis Employees also use a mathematical process known as Markov analysis
(Or Transition analysis) to forecast availability of internal job candidates. Markov
analysis involves creating a matrix that shows the probabilities that employees in the
chain of feeder positions for a key job (such as from junior engineer, to engineer, to
senior engineer, to engineering supervisor, to director of engineering) will move from
position to position and therefore be available to fill the key position.

[Link] the Supply of Outside Candidates

● Forecasting workforce availability depends first on the manager’s own sense of what’s
happening in his or her industry and locale. The manager then supplements such
observations with formal labor market analyses.
● You may also want to forecast specific occupations.
● Today’s emphasis on technology means many applicants may lack basic skills such as
math, communication, creativity, and teamwork. Such needs, too, get factored into the
employer’s workforce and training plans.

[Link] Recruiting and Hidden Job Market

● Many (or most) job openings aren’t published at all. Jobs are created and become
available when employers sudden encounter the right candidates

Predictive Workforce Monitoring

Workforce planning therefore often involves paying continuous attention to workforce planning
issues. Managers call this predictive workforce monitoring

Matching Projected Labor Supply and Labor Demand

● Workforce plan lays out the employer’s projected workforce and skills gaps, as well as
staffing plans for filling these gaps.
● The plan should identify the positions to be filled; potential internal and external
candidates or sources for these positions; the training and promotions moving people into
the positions will entail; and the resources that implementing the plan will require, for
instance, in recruiter fees, estimated training costs, relocation costs, and interview
expenses.

Succession Planning
Succession planning involves developing workforce plans for the company’s top positions.
Succession planning is the ongoing process of systematically identifying, assessing, and
developing organizational leadership to enhance performance. It entails three steps: identify key
position needs, develop inside candidates, and assess and choose those who will fill the key
positions.
1. Step 1:
- First, based on the company’s strategic and business plans, top management and
the human resource director identify what the company’s future key position
needs will be.
- Matters to address here include defining key positions and “high potentials,”
reviewing the company’s current talent, and creating skills profiles for the key
positions.
2. Step 2:
- “Creating candidates” means identifying inside or outside candidates and
providing them with developmental experiences they require
- Employers develop high-potential employees through internal training and
cross-functional experiences, job rotation, external training, and global/regional
assignments.
3. Step 3:
- Finally, succession planning requires assessing these candidates and selecting
those who will actually fill the key positions.

9 BOX MODEL OF SUCCESSIVE PLANNING

Candidate Assessment and the 9-Box Grid
● How then does an employer choose who to send through an expensive development
program? The 9-Box Grid is one tool.
● It shows Potential from low to medium to high on the vertical axis, and Performance
from low to medium to high across the bottom—a total of nine possible boxes.
● The grid can simplify, somewhat, the task of choosing development candidates.
- At the extremes, for instance, low potentials/low performers would not move on.
- The high-potential/high-performance stars most assuredly would.
- Most employers focus their development resources on high-performance
/high-potential stars, and secondarily on those rated high-potential/
moderate-performance, or high-performance/ moderate-potential.
● Other employers focus development resources on the company’s “mission-critical
employees”—those central to the firm’s success and survival.
● In any case, individual assessment should always precede development.
The Recruiting Yield Pyramid
● Managers use a recruiting yield pyramid to gauge the staffing issues it needs to address.

● The company knows it needs 50 new entry-level accountants next year. From experience,
the firm also knows the following:
○ The ratio of offers made to actual new hires is 2 to 1.
○ The ratio of candidates interviewed to offers made is 3 to 2.
○ The ratio of candidates invited for interviews to candidates interviewed is about 4
to 3.
 ○ Finally, the firm knows that of six leads that come in from all its recruiting
sources, it typically invites only one applicant for an interview—a 6-to-1 ratio.
○ Therefore, the firm must generate about 1,200 leads to be able to invite in 200
viable candidates of which it interviews about 150, and so on.

Internal Sources of candidates

● Filling open positions with inside candidates has advantages.
1. First, there is really no substitute for knowing a candidate’s strengths and
weaknesses, as you should after working with him or her for some time.
2. Current employees may also be more committed to the company.
3. Morale and engagement may rise if employees see promotions as rewards for
loyalty and competence.
4. Inside candidates require less orientation and training than outsiders.
5. External hires tend to come in at higher salaries than do those promoted internally,
and some apparent “stars” hired from outside may turn out to have excelled more
because of the company they came from than from their own skills.
● Hiring from within can also backfire.
1. Inbreeding is a potential drawback, if new perspectives are required.
2. The process of posting openings and getting inside applicants can also be a waste
of time, since the department manager already knows whom they want to hire.
3. Rejected inside applicants may become discontented; telling them why you
rejected them and what remedial actions they might take is crucial.
● There are some practical rules to use in determining whether to go outside or promote
from within.
- If you need specific skills that aren’t currently available in your company, or face
a situation in which your current succession planning or skills inventory systems
are inadequate, it may be best to look outside.
- If your company is thriving and you have effective succession planning and skills
inventory systems, have the skills you need internally, and have a unique and
strong company culture, then look within.

Finding Internal Candidates

In a perfect world, the employer will adhere to formal internal-recruitment policies and
procedures. These typically rely heavily on job posting and on the firm’s skills inventories. Job
posting means publicizing the open job to employees (usually by literally posting it on company
intranets or bulletin boards). These postings list the job’s attributes, like qualifications,
supervisor, work schedule, and pay rate. Qualifications skills inventories also play a role.
Promotion from Within
Many employers encourage internal recruiting, on the reasonable assumption that doing so
improves employee engagement.
A manager interested in promoting internally Show a genuine interest in your employees’ career
aspirations; provide career-oriented appraisals; have a formal job-posting system; see that your
employees have access to the training they need; and balance your desire to keep good
employees with the benefits of helping them learn of and apply for other positions in your
company.

Outside Sources of candidates

Recruiting via the Internet

● Most employers recruit through their own websites, or through online job boards such as
Indeed and CareerBuilder.
● Users may search for jobs by keyword, read job descriptions and salaries, save jobs to a
list of favorites, and email job links to anyone on their contact list.
● Online recruiting is getting more sophisticated. One example is the virtual office tour.
People visiting the site can virtually enter each of the company’s offices to get a feel for
what working in that office is like.
● There are many other such online recruiting tools. For example, ResumePal is an online
standard universal job application. Job seekers submit it to participating employers, who
can then use the standardized application’s keywords to identify viable candidates more
easily.
● Other employers simply screen through job boards’ résumé listings.
● Virtual job fairs are another option. Here online visitors see a similar setup to a regular
job fair. They can listen to presentations, visit booths, leave résumés and business cards,
participate in live chats, and get contact information from recruiters and even hiring
managers.
● Pros
- Online recruiting generates more responses quicker and for a longer time at less
cost than just about any other method.
- And, because they are richer and more comprehensive in describing the jobs,
web-based ads have a stronger effect on applicant attraction than do printed ads.
● Cons
- Older people and some minorities are less likely to use the Internet, so online
recruiting may inadvertently exclude more older applicants
- Internet overload: Employers end up deluged with résumés. Self screening or
even having job seekers complete a short online pre screening questionnaire, then
use these to identify those who may proceed in the hiring process helps.
Advertising
Print ads are still popular. To use such help wanted ads successfully, employers should address
two issues: the advertising medium and the ad’s construction.
The media
- The best medium depends on the positions for which you’re recruiting.
- For example, the local newspaper is often a good source for local blue-collar help,
clerical employees, and lower-level administrative employees.
- On the other hand, if recruiting for workers with special skills you’d probably want to
advertise in suitable prints
- The point is to target your ads where they’ll reach your prospective employees. For
specialized employees, advertise in trade and professional journals
Constructing (Writing) The Ad
- Experienced advertisers use the guide AIDA (attention, interest, desire, action) to
construct ads.
- First, you must attract attention to the ad, or readers may ignore it.
- Next, develop interest in the job. For instance, “are you looking to make an impact?”
Create desire by spotlighting words such as travel or challenge.
- Finally, the ad should prompt action with a statement like “call today.” Job applicants
view ads with more specific job information as more attractive and more credible.

Employment Agencies
Public And Nonprofit Agencies
- Every state has a public, state-run employment service agency.
- Applicants for unemployment insurance are required to register and to make themselves
available for job interviews. Some of these people are not interested in returning to work,
so employers can end up with applicants who have little desire for immediate
employment.
- Employers probably view some of these local agencies as lethargic in their efforts to fill
area employers’ jobs. Yet these agencies are useful.
- Beyond just filling jobs, counselors will visit an employer’s work site, review the
employer’s job requirements, and even assist the employer in writing job descriptions.
- Many special public agencies place people who are in special categories, such as those
who are disabled.
Private Agencies
- Private employment agencies are important sources of clerical, white-collar, and
managerial personnel. They charge fees for each applicant they place. Use one if:
a. Your firm doesn’t have its own human resources department and feels it can’t do a
good job recruiting and screening.
b. You must fill a job quickly.
 c. There is a perceived need to attract more minority or female applicants.
d. You want to reach currently employed individuals, who might feel more
comfortable dealing with agencies than with competing companies.
Problems with employment agencies:
The employment agency’s screening may let poor applicants go directly to the supervisors
responsible for hiring, who may in turn naively hire them. Conversely, improper screening at the
agency could block potentially successful applicants.

To help avoid problems:

a. Give the agency an accurate and complete job description.
b. Make sure tests, application blanks, and interviews are part of the agency’s selection
process.
c. Periodically review equal employment data on candidates accepted or rejected by your
firm, and by the agency.
d. Screen the agency. Check with other managers to find out which agencies have been the
most effective at filling the sorts of positions you need filled.
e. Supplement the agency’s reference checking by checking the final candidate’s references
yourself.

Recruitment Process Outsourcers

● Recruitment process outsourcers are special vendors that handle all or most of an
employer’s recruiting needs.
● They usually sign short-term contracts with the employer, and receive a monthly fee that
varies with the amount of actual recruiting the em- ployer needs done.
● This makes it easier for an employer to ramp up or ramp down its recruiting expenses, as
compared with paying the relatively fixed costs of an in-house recruitment office.

Temporary Workers and Alternative Staffing

● Employers increasingly supplement their permanent workforces by hiring contingent or
temporary workers, often through temporary help employment agencies.
● Also known as part-time or just-in-time workers, the contingent workforce is big and
growing.
● Employers use temps for many reasons.
1. Continuing weak economic confidence among employers.
2. Trend toward organizing around short-term projects.
3. Flexibility is another concern, with more employers wanting to quickly reduce
employment levels if the economic turnaround proves short-lived.
4. Other employers use temp agency–supplied workers to “try out” prospective
employees.
 5. Employers have also long used “temps” to fill in for employees who were out sick
or on vacation.
6. Productivity in output is higher, since temps are generally paid only when they’re
working—not for days off. However, temps often cost employers more per hour
than comparable permanent workers, since the agency gets a fee.
● Other alternative staffing arrangements include “in-house temporary employees” (people
employed directly by the company, but on an explicit short-term basis) and “contract
technical employees” (highly skilled workers like engineers, who are supplied for
long-term projects under contract from an outside technical services firm).

Types of external recruitment

Offshoring and outsourcing jobs
● Rather than bringing people in to do the company’s jobs, outsourcing and offshoring send
the jobs out.
● Outsourcing means having outside vendors supply services (such as benefits
management, market research, or manufacturing) that the company’s own employees
previously did in-house.
● Offshoring means having outside vendors or employees abroad supply services that the
company’s own employees previously did in-house.
● Employees, unions, legislators, and even many business owners feel that “shipping jobs
out” (particularly overseas) is ill-advised. That notwithstanding, employers are sending
jobs out, and not just blue-collar jobs.
● Sending out jobs, particularly overseas, presents employers with special person- nel
challenges.
- One is the likelihood of cultural misunderstandings (such as between your
home-based customers and the employees abroad).
- Others are security and information privacy concerns; the need to deal with
foreign contract, liability, and legal systems issues;
- Offshore employees need special training

Executive recruiters
● Executive recruiters (also known as headhunters) are special employment agencies
employers retain to seek out top-management talent for their clients. The percentage of
your firm’s positions filled by these services might be small.
● However, these jobs include key executive and technical positions. For executive
positions, headhunters may be your only source of candidates. The employer always pays
the fees.
● There are contingent and retained executive recruiters.
 - Members of the Association of Executive Search Consultants usually focus on
executive positions paying $150,000 or more, and on “retained executive
search.”
- They are paid regardless of whether the employer hires the executive through the
search firm’s efforts.
- Contingency-based recruiters tend to handle junior- to middle-level management
job searches in the $80,000 to $160,000 range.
● Internet-based databases now dramatically speed up such searches.
● Executive recruiters are also creating specialized units aimed at specialized functions
(such as sales) or industries (such as oil products).
● Recruiters bring a lot to the table.
- They have many contacts and are relatively adept at finding qualified candidates
who aren’t actively looking to change jobs.
- They can keep your firm’s name confidential, and can save top management’s
time by building an applicant pool.
- The recruiter’s fee might actually turn out to be small when you compare it to the
executive time saved.
● Negatives:
- The big issue is ensuring that the recruiter really understands your needs and then
delivers properly vetted candidates.
- Some recruiters also may be more interested in persuading you to hire a candidate
than in finding one who will really do the job.
- And one or two of the “final candidates” may actually just be fillers to make the
recruiter’s one “real” candidate look better.

Referral walk-in
● Employee referral campaigns are a very important recruiting option. Here the employer
posts announcements of openings and requests for referrals on its website, bulletin
boards, and/or wallboards. It often offers prizes or cash awards for referrals that lead to
hiring.
● Referral’s big advantage is that it tends to generate “more applicants, more hires, and a
higher yield ratio (hires/applicants).”
● Current employees tend to provide accurate information about their referrals because
they’re putting their own reputations on the line. And the new employees may come with
a more realistic picture of what the firm is like.
● If morale is low, address that prior to asking for referrals. And if you don’t hire
someone’s referral, explain to your employee/referrer why you did not hire his or her
candidate. In addition, remember that relying on referrals might be discriminatory where
a workforce is already homogeneous.
 ● Walk Ins: Particularly for hourly workers, walk-ins—direct applications made at your
office—are a big source of applicants.
- Sometimes, posting a “Help Wanted” sign outside the door may be the most
cost-effective way of attracting good local applicants.
- Treat walk-ins courteously, for both the employer’s community reputation and the
applicant’s self-esteem.
- Many employers give every walk-in a brief interview, even if it is only to get information
on the applicant “in case a position should be open in the future.”

Internships
● Internships can be win–win situations. For students, they can mean honing business
skills, learning more about potential employers, and discovering one’s career likes (and
dislikes).
● And employers can use the interns to make useful contributions while evaluating them as
possible full-time employees.
● Unfortunately, some internships turn into nightmares. Many interns, particularly in
industries like fashion and media, report long unpaid days doing menial work.

College recruitment
● College recruiting—sending an employer’s representatives to college campuses to
prescreen applicants and create an applicant pool from the graduating class—is
important.
● Negatives:
- One problem is that such recruiting is expensive. Schedules must be set well in
advance, company brochures printed, interview records kept, and much time spent
on campus.
- And recruiters are sometimes ineffective. Some are unprepared, show little
interest in the candidate, and act superior. Many don’t screen candidates
effectively.
- Employers need to train recruiters in how to interview candidates, how to explain
what the company has to offer, and how to put candidates at ease. The recruiter
should be personable and have a record of attracting good candidates.
● The campus recruiter has two main goals.
- One is to determine if a candidate is worthy of further consideration. Usual traits
to assess include communication skills, education, experience, and technical and
interpersonal skills.
- The other aim is to make the employer attractive to candidates. A sincere and
informal attitude, respect for the applicant, and prompt follow-up letters can help
sell the employer to the interviewee.
 ● Employers who build relationships with opinion leaders such as career counselors and
professors have better recruiting results.
● The process:
- Employers generally invite good candidates for an on-site visit.
- Have a host meet the applicant with a package containing the applicant’s schedule
and other information
- Plan the interviews and adhere to the schedule.
- Avoid interruption
- Make any offer as soon as possible, preferably at the time of the visit.
- Frequent follow-ups to “find out how the decision process is going” may help to
tilt the applicant in your favor.

Telecommuters
● Telecommuters do all or most of their work remotely, often from home, using information
technology.

Developing and Using application Forms

Purpose of Application Forms

With a pool of applicants, the pre screening process can begin. The application form is usually
the first step in this process.
A filled-in application provides four types of information.
● First, you can make judgments on substantive matters, such as whether the applicant has
the education and experience to do the job.
● Second, you can draw conclusions about the applicant’s previous progress and growth,
especially important for management candidates.
● Third, you can draw tentative conclusions about the applicant’s stability based on
previous work record (although years of downsizing suggest the need for caution here).
● Fourth, you may be able to use the data in the application to predict which candidates will
succeed on the job

Application guidelines
1. Membership in organizations. Some forms ask to list memberships in clubs,
organizations, or societies. Employers should include instructions not to include
organizations that would reveal race, religion, physical handicaps, marital status, or
ancestry.
2. Physical handicaps. It is usually illegal to require the listing of an applicant’s physical
handicaps or past illnesses unless the application blank specifically asks only for those
that “may interfere with your job performance.” Similarly, it is generally illegal to ask if
the applicant has received workers’ compensation.
 3. Marital status. In general, the application should not ask whether an applicant is single,
married, divorced, separated, or living with anyone, or the names, occupations, and ages
of the applicant’s spouse or children.
4. Housing. Asking whether an applicant owns, rents, or leases a house may be
discriminatory. It can adversely affect minority groups and is difficult to justify on
business necessity.
5. Vidéo résumés. More candidates are submitting video résumés, a practice replete with
benefits and threats. To facilitate using video résumés, several websites compile
multimedia résumés for applicants.162 The danger is that a video makes it more likely
that rejected candidates may claim discrimination.

Using Application Forms to Predict Job Performance

Some employers use analyses of application information (“biodata”) to predict employee tenure
and performance. In one study, the researchers found that applicants who had longer tenure with
previous employers were less likely to quit, and also had higher performance within 6 months
after hire.

Selection process
The aim of employee selection is to achieve person-job fit. This means matching the
knowledge, skills, abilities, and other competencies (KSACs) that are required for performing
the job (based on job analysis) with the applicant’s KSACs.
Of course, a candidate might be “right” for a job, but wrong for the organization.3 For example,
an experienced airline pilot might excel at American Airlines but perhaps not at Southwest,
where the organizational values require that all employees help out, even with baggage handling.
Therefore, while person-job fit is usually the main consideration, person-organization fit is
important too.
Negligent hiring is a legal claim made against an employer. It is made by an individual (i.e.,
employee or customer) who is injured by an employee with a history reflecting similar incidents.
The negligent hiring claim argues that the employer knew or should have known their history
before hiring them.

Basic Testing concepts

A test is basically a sample of a person’s behavior. Any test or screening tool has two important
characteristics, reliability and validity.

Reliability
Reliability is a selection tool’s first requirement and refers to its consistency: “A reliable test is
one that yields consistent scores when a person takes two alternate forms of the test or when he
or she takes the same test on two or more different occasions.”
 1. Test-retest reliability One is to administer a test to a group one day, re-administer the
same test several days later to the same group, and then correlate the first set of scores
with the second (called test-retest reliability estimates).
2. you could administer a test and then administer what experts believe to be an equivalent
test later; this would be an equivalent or alternate form estimate
3. Internal consistency reliability defines the consistency of the results delivered in a test,
ensuring that the various items measuring the different constructs deliver consistent
scores.

Many things cause a test to be unreliable. These include physical conditions (quiet one day, noisy
the next), differences in the test taker (healthy one day, sick the next), and differences in test
administration (courteous one day, curt the next).

Validity
Validity tells you whether the test is measuring what you think it’s supposed to be measuring.11
Test validity answers the question “Does this test measure what it’s supposed to measure?

1. Criterion validity involves demonstrating statistically a relationship between scores on a

selection procedure and job performance of a sample of workers. For example, it means
demonstrating that those who do well on the test also do well on the job, and that those
who do poorly on the test do poorly on the job. The test has validity to the extent that the
people with higher test scores perform better on the job. In psychological measurement, a
predictor is the measurement (in this case, the test score) that you are trying to relate to a
criterion, such as performance on the job.
2. Content validity is a demonstration that the content of a selection procedure is
representative of important aspects of performance on the job. For example, employers
may demonstrate the content validity of a test by showing that the test constitutes a fair
sample of the job’s content.
3. Construct validity means demonstrating that (1) a selection procedure measures a
construct (an abstract idea such as morale or honesty) and (2) that the construct is
important for successful job performance.

How to Validate a Test

Step 1: Analyze the JobThe first step is to analyze the job and write job descriptions and job
specifications. The aim here is to specify the human traits and skills you believe are required for
job performance. In this first step, also define “success on the job,” since it’s this success for
which you want predictors. The standards of success are criteria.
Step 2: Choose the Tests Once you know the predictors (such as manual dexterity) the next step
is to decide how to test for them. Employers usually base this choice on experience, previous
research, and “best guesses.” They usually don’t start with just one test. Instead, they choose
several tests and combine them into a test battery.

Step 3: Administer the Test Next, administer the selected test(s). One option is to administer the
tests to employees currently on the job. You then compare their test scores with their current
performance; this is concurrent (at the same time) validation. Predictive validation is the second
and more dependable way to validate a test. Here you administer the test to applicants before you
hire them, then hire these applicants using only existing selection techniques, not the results of
the new tests. After they’ve been on the job for some time, measure their performance and
compare it to their earlier test scores. You can then determine whether you could have used their
performance on the new test to predict their subsequent job performance.

Step 4: Relate your Test Scores and Criteria Here, ascertain if there is a significant relationship
between test scores (the predictor) and performance (the criterion). The usual method is to
determine the statistical relationship between (1) scores on the test and (2) job performance using
correlation analysis, which shows the degree of statistical relationship.
If there is a correlation between test and job performance, you can develop an expectancy chart.
This presents the relationship between test scores and job performance graphically. To do this,
split the employees into, say, five groups according to test scores, with those scoring the highest
fifth on the test, the second highest fifth, and so on. Then compute the percentage of high job
performers in each of these five test score groups and present the data in an expectancy chart.

Step 5: Cross-validate and revalidate Before using the test, you may want to check it by
“cross-validating”—in other words, by again performing steps 3 and 4 on a new sample of
employees. At a minimum, revalidate the test periodically.

Bias
Most employers know they shouldn’t use biased tests in the selection process.22 For example, a
particular IQ test may provide a valid measure of cognitive ability for middle-class whites but
not for some minorities, if the score depends on familiarity with certain aspects of middle-class
culture
1. Utility Analysis
Knowing that a test predicts performance isn’t always of practical use. For example, if it
is going to cost the employer $1,000 per applicant for the test, and hundreds of applicants
must be tested, the cost of the test may exceed the benefits derived from hiring a few
more capable employees. Answering the question, “Does it pay to use the test?” requires
utility analysis.
 2. Validity Generalization
If the test is valid in one company, to what extent can we generalize those validity
findings to our own company? Validity generalization “refers to the degree to which
evidence of a measure’s validity obtained in one situation can be generalized to another
situation without further study.

Types of test
Tests of Cognitive Abilities
Cognitive tests include tests of general reasoning ability (intelligence) and tests of specific
mental abilities like memory and inductive reasoning.
● Intelligence tests Intelligence (IQ) tests are tests of general intellectual abilities. They
measure not a single trait but rather a range of abilities, including memory, vocabulary,
verbal fluency, and numerical ability.
● Specific Cognitive abilities There are also measures of specific mental abilities, such as
deductive reasoning, verbal comprehension, memory, and numerical ability.

Tests of Motor and Physical Abilities

You might also want to measure motor abilities, such as finger dexterity, manual dexterity, and
(if hiring pilots) reaction time.

Measuring Personality and Interests

Most people are hired based on qualifications, but are fired because of attitude, motivation, and
temperament. Personality tests measure basic aspects of an applicant’s personality, such as
introversion, stability, and motivation. Industrial psychologists often focus on the “big five”
personality dimensions: extraversion, emotional stability/neuroticism, agreeableness,
conscientiousness, and openness to experience.

Projective tests. Some personality tests are projective. The psychologist presents an ambiguous
stimulus (like an inkblot or clouded picture) and the person reacts.

Other personality tests are self-reported: applicants fill them out. Thus, available online, the
Myers-Briggs test provides a personality type classification useful for decisions such as career
selection and planning.

There are four caveats.

● First, projective personality tests are particularly hard to interpret. An expert must
analyze the test taker’s interpretations and infer from them his or her personality.
 ● Second, personality tests can trigger legal challenges. For example, one court held that
the Minnesota Multiphasic Personality Inventory (MMPI) is a medical test (because it
can screen out applicants with psychological impairments), and so might violate the
ADA.
● Third, a panel of distinguished industrial psychologists said using self-report personality
tests in selection “should be reconsidered [due to low validity].”57 Other experts call
such concerns “unfounded.”
● Fourth, people can and will fake responses to personality and integrity tests. The bottom
line: make sure the personality tests you use predict performance for the jobs you are
testing for.

Interest Inventories
Interest inventories compare one’s interests with those of people in various occupations. Thus,
the Strong-Campbell Interest Inventory provides a report comparing one’s interests to those of
people already in occupations like accounting or engineering. Someone taking the Self-Directed
Search (SDS) uses it to identify likely high-fit occupations. The assumption is that someone will
do better in occupations in which he or she is interested, and indeed such inventories can predict
employee performance and turnover.

Achievement Tests
Achievement tests measure what someone has learned. Most of the tests you take in school are
achievement tests. They measure your “job knowledge” in areas like economics, marketing, or
human resources. Achievement tests are also popular at work.

Computerization and Online Testing

Computerized and/or online testing is increasingly replacing paper-and-pencil tests. For example,
Timken Company uses online assessment of math skills for hourly position applicants. Many
employers have applicants take short Web Based tests before reviewing their résumés and
holding interviews. This leaves a smaller pool to undergo the more personal and costly testing
and interviewing

Work samples & simulation

With work samples, you present examinees with situations representative of the job for which
they’re applying, and evaluate their responses.

The work sampling technique tries to predict job performance by requiring job candidates to
perform one or more samples of the job’s tasks. For example, work samples for a cashier may
include operating a cash register and counting money. Work sampling has several advantages. It
measures actual job tasks, so it’s harder to fake answers.
 1. Situational Judgment Tests
Situational judgment tests are personnel tests “designed to assess an applicant’s judgment
regarding a situation encountered in the workplace.”

Situation: A customer comes to you with a printout for a Samsung Galaxy phone from
[Link], and proceeds to ask you detailed questions about battery life, and how to work the
phone, while mentioning that “Amazon’s price is $50 less than yours.” You have been with this
customer for almost an hour, and there are other customers waiting. You would: 1. Tell the
customer to go buy the phone on Amazon. 2. Tell the customer to wait 20 minutes while you take
care of another customer. 3. Tell the customer that the local Sprint Mobility dealer has the phone
for even less than Amazon. 4. Explain the advantages of similar phones you have that may better
fulfill the buyer’s requirements. 5. Ask your supervisor to come over and try to sell the customer
on buying the Galaxy from you.

2. Management Assessment Centers

A management assessment center is a 2- to 3-day simulation in which 10 to 12 candidates
perform realistic management tasks.
● The in-basket. The candidate gets reports, memos, notes of incoming phone calls,
e-mails, and other materials collected in the actual or computerized in-basket of the
simulated job he or she is about to start. The candidate must take appropriate action on
each item. Trained evaluators review the candidate’s efforts.
● Leaderless group discussion. Trainers give a leaderless group a discussion question and
tell members to arrive at a group decision. They then evaluate each group member’s
interpersonal skills, acceptance by the group, leadership ability, and individual influence.
● Management games. Participants solve realistic problems as members of simulated
companies competing in a marketplace.
● Individual oral presentations. Here trainers evaluate each participant’s communication
skills and persuasiveness.
● Testing. These may include tests of personality, mental ability, interests, and
achievements.
● The interview. Most require an interview with a trainer to assess interests, past
performance, and motivation.

3. The video-based simulation presents the candidate with several online or computer
video situations, each followed by one or more multiple-choice questions. For example,
the scenario might depict an employee handling a situation on the job. At a critical
moment, the scenario ends and the video asks the candidate to choose from several
courses of action.
 4. The Miniature Job Training and Evaluation Approach Miniature job training and
evaluation involves training candidates to perform several of the job’s tasks, and then
evaluating their performance prior to hire. . Like work sampling, miniature job training
and evaluation tests applicants with actual samples of the job, so it is inherently content
relevant and valid.

Selection Techniques
Testing is only part of an employer’s selection process. Other tools may include background
investigations and reference checks, pre employment information services, honesty testing, and
substance abuse screening.

Background Check
There are two main reasons to check backgrounds—to verify the applicant’s information (name
and so forth) and to uncover damaging information.
Most employers at least try to verify an applicant’s current (or former) position and salary with
his or her current (or former) employer by phone (assuming you cleared doing so with the
candidate). Others call the applicant’s current and previous supervisors to try to discover more
about the person’s motivation, technical competence, and ability to work with others.

Digital tools are changing the background-checking process. Employers are Googling applicants
or checking Facebook and LinkedIn.

Using Pre Employment Information Services

It is easy to have employment screening services check out applicants. Major background
checking providers include Automatic Data Processing Inc., First Advantage, HireRight, and
Sterling Backcheck. They use databases to access information about matters such as workers’
compensation, credit histories, and conviction and driving records.

The Polygraph and Honesty Testing

The polygraph is a device that measures physiological changes like increased perspiration. The
assumption is that such changes reflect changes in emotional state that accompany lying.

Written Honesty Tests

These are psychological tests designed to predict job applicants’ proneness to dishonesty and
other forms of counterproductivity. Most measure attitudes regarding things like tolerance of
others who steal and admission of theft-related activities.
Graphology
Graphology is the use of handwriting analysis to determine the writer’s basic personality traits. It
thus has some resemblance to projective personality tests, although graphology’s validity is
highly suspect. The handwriting analyst studies an applicant’s handwriting and signature to
discover the person’s needs, desires, and psychological makeup.

Physical Exams
Once the employer extends the person a job offer, a medical exam is often the next step in
selection (although it may also occur after the new employee starts work). There are several
reasons for pre employment medical exams: to verify that the applicant meets the job’s physical
requirements, to discover any medical limitations you should consider in placement, and to
establish a baseline for future workers’ compensation claims.

Substance Abuse Screening

Most employers conduct drug screenings. The most common practice is to test candidates just
before they’re formally hired.
Many also test current employees when there is reason to believe they’ve been using
drugs—after a work accident, or with obvious behavioral symptoms such as chronic lateness.
Some firms routinely administer drug tests on a random or periodic basis, while others require
drug tests when they transfer or promote employees to new positions

Basic Types of Interviews

Managers use several interviews at work, such as performance appraisal interviews and exit
interviews. A selection interview (the focus of this chapter) is a selection procedure designed to
predict future job performance based on applicants’ oral responses to oral inquiries.

1. Structured Versus Unstructured Interviews

● First, most interviews vary in the degree to which the interviewer structures the interview
process. In unstructured (or nondirective) interviews, the manager follows no set format.
A few questions might be specified in advance, but they’re usually not, and there is
seldom a formal guide for scoring “right” or “wrong” answers
● In structured (or directive) interviews, the employer lists questions ahead of time, and
may even weight possible alternative answers for appropriateness.
● In practice, interview structure is a matter of degree. Sometimes the manager may just
want to ensure he or she has a set list of questions to ask so as to avoid skipping any
questions.
● Structured interviews are generally best.8 In such interviews, all interviewers generally
ask all applicants the same questions. Partly because of this, these interviews tend to be
more consistent, reliable, and valid. Having a standardized list of questions can also help
less talented interviewers conduct better interviews.
 2. Interview Content (What Types of Questions to Ask)
● In a situational interview, you ask the candidate what his or her behavior would be in a
given situation.10 For example, ask a supervisory candidate how he or she would act in
response to a subordinate coming to work late 3 days in a row.
● Whereas situational interviews ask applicants to describe how they would react to a
hypothetical situation today or tomorrow, behavioral interviews ask applicants to describe
how they reacted to actual situations in the past.
● Situational questions start with phrases such as, “Suppose you were faced with the
following situation…. What would you do?” Behavioral questions start with phrases like,
“Can you think of a time when…. What did you do?”

3. Other Type of Questions.

● In a job-related interview, the interviewer asks applicants questions about job-relevant
past experiences.
● The questions here don’t revolve around hypothetical or actual situations or scenarios.
Instead, the interviewer asks questions such as, “Which courses did you like best in
business school?”
● The aim is to draw conclusions about, say, the candidate’s ability to handle the financial
aspects of the job in question.
● There are other, lesser-used types of questions.
● In a stress interview, the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions. The aim is supposedly to spot sensitive applicants and those
with low (or high) stress tolerance.
● The stress interview’s invasive and ethically dubious nature demands that the interviewer
be both skilled in its use and sure the job really requires handling stress.
● Puzzle questions are popular. Recruiters see how candidates think under pressure. For
example, an interviewer at Microsoft asked a tech service applicant this: “Mike and Todd
have $21 between them. Mike has $20 more than Todd does. How much money has
Mike, and how much money has Todd?”

How Should We Conduct the Interview?

Employers also administer interviews in various ways: one-on-one or by a panel of interviewers,
sequentially or all at once, computerized or personally, or online
Most selection interviews are probably still one-on-one and sequential.
1. In a one-on-one interview, two people meet alone, and one interviews the other by
seeking oral responses to oral inquiries. Employers tend to schedule these interviews
sequentially.
2. In a sequential (or serial) interview, several persons interview the applicant, in
sequence, one-on-one, and then make their hiring decision.
 3. In an unstructured sequential interview, each interviewer generally just asks questions
as they come to mind.
4. In a structured sequential interview, each interviewer rates the candidates on a standard
evaluation form, using standardized questions. The hiring manager then reviews these
ratings before deciding whom to hire.

Other Modes of interviews

1. A panel interview, also known as a board interview, is an interview conducted by a team
of interviewers (usually two to three), who together question each candidate and then
combine their ratings of each candidate’s answers into a final panel score
2. Phone interviews Employers also conduct interviews via phone. Somewhat
counterintuitively, these can actually be more useful than face-to-face interviews for
judging one’s conscientiousness, intelligence, and interpersonal skills.
3. Computer based job interviews A computerized selection interview is one in which a
job candidate’s oral and/or keyed replies are obtained in response to computerized oral,
visual, or written questions and/or situations.
4. Web based interviews With phone and tablet video functionalities and FaceTime™ and
Skype™, Web-based “in-person” interview use is widespread

Avoiding errors That Can Undermine an Interview’s Usefulness

1. First Impressions (Snap Judgments)
Probably the most widespread error is that interviewers tend to jump to conclusions—make snap
judgments—about candidates during the first few minutes of the interview (or even before the
interview starts, based on test scores or résumé data). One researcher estimates that in 85% of the
cases, interviewers had made up their minds before the interview even began, based on first
impressions the interviewers gleaned from candidates’ applications and personal appearance.

2. Not Clarifying What the Job Requires

Interviewers who don’t have an accurate picture of what the job entails and what sort of
candidate is best for it usually make their decisions based on incorrect impressions or stereotypes
of what a good applicant is. They then erroneously match interviewees with their incorrect
stereotypes. You should clarify what sorts of traits you’re looking for, and why, before starting
the interview

3. Candidate-Order (Contrast) Error and Pressure to Hire

Candidate-order (or contrast) error means that the order in which you see applicants affects how
you rate them. In one study, managers had to evaluate a sample candidate who was “just
average” after first evaluating several “unfavorable” candidates. They scored the average
candidate more favorably than they might otherwise because, in contrast to the unfavorable
candidates, the average one looked better than he actually was. This contrast effect can be huge:
 4. Nonverbal Behavior and Impression Management
The applicant’s nonverbal behavior (smiling, avoiding your gaze, and so on) can also have a
surprisingly large impact on his or her rating.
Nonverbal behaviors are probably so important because interviewers infer your personality from
the way you act in the interview
imPressiOn mAnAgement Clever candidates capitalize on that fact. One study found that some
used ingratiation to persuade interviewers to like them

5. Effect of Personal Characteristics: Attractiveness, Gender, Race

Unfortunately, physical attributes also distort assessments.55 For example, people usually
ascribe more favorable traits and more successful life outcomes to attractive people.

How to Design and Conduct an effective Interview

There’s little doubt that the structured situational interview—a series of
job-relevant questions with predetermined answers that interviewers ask of all
applicants for the job—produces superior results.

Designing a Structured Situational Interview

The procedure is as follows
● Step 1. Analyze the job. Write a job description with a list of job duties; required
knowledge, skills, and abilities; and other worker qualifications.
● Step 2. Rate the job’s main duties. Rate each job duty, say from 1 to 5, based on how
important it is to doing the job.
● Step 3. Create interview questions. Create situational, behavioral, and job knowledge
interview questions for each of the job duties, with more questions for the important
duties.
● Step 4. Create benchmark answers. Next, for each question, develop ideal (benchmark)
answers for good (a 5 rating), marginal (a 3 rating), and poor (a 1 rating) answers.
● Step 5. Appoint the interview panel and conduct interviews. Employers generally conduct
structured situational interviews using a panel, rather than one-on-one.
 Unit 3
Training & Development

The Purposes of Employee Orientation/Onboarding

Employee orientation (or onboarding) provides new employees with the basic background
information (such as computer passwords and company rules) they need to do their jobs; ideally
it should also help them start becoming emotionally attached to and engaged in the firm. The
manager wants to accomplish four things when orienting new employees:
● Make the new employee feel welcome and at home and part of the team.
● Make sure the new employee has the basic information to function effectively, such as
e-mail access, personnel policies and benefits, and expectations in terms of work
behavior.
● Help the new employee understand the organization in a broad sense (its past, present,
culture, and strategies and vision of the future).
● Start socializing the person into the firm’s culture and ways of doing things

The Orientation Process

● The length of the orientation program depends on what you cover. Most take several
hours.
● The human resource specialist or manager performs the first part of the orientation by
explaining basic matters like working hours and benefits.
● Then the supervisor continues the orientation by explaining the department’s
organization, introducing the person to his or her new colleagues, familiarizing him or her
with the workplace, and reducing first-day jitters.
● At a minimum, the orientation should provide information on matters such as employee
benefits, personnel policies, safety measures and regulations, and a facilities tour; new
employees should receive (and sign for) print or Internet-based employee handbooks
covering such matters.
● At the other extreme, the beauty company L’Oreal’s onboarding program takes about 2
years. It includes special training and roundtable discussions, meetings with key insiders,
on-the-job learning, individual mentoring, and special experiences such as site visits.
● Especially for new employees with disabilities, integration and socialization are highly
influenced by coworkers’ and supervisors’ behavior.

The employee handbook

- Courts may find that the employee handbook’s contents are legally binding commitments.
Even apparently sensible handbook policies can backfire without the proper disclaimers.
- The handbook should include a disclaimer stating “nothing in this handbook should be
taken as creating a binding contract between employer and employees, and all
employment is on an at will basis.”
Overview of the Training Process
Directly after orientation, training should begin. Training means giving new or current
employees the skills that they need to perform their jobs, such as showing new salespeople how
to sell your product. Training might involve having the current jobholder explain the job to the
new hire, or multi-week classroom or Internet classes

The ADDIE Five-Step Training Process

The employer should use a rational training process. The gold standard here is still the basic
analysis-design-develop-implement-evaluate (ADDIE) training process model that training
experts have used for years. As an example, one training vendor describes its training process as
follows:
● Analyze the training need.
● Design the overall training program.
● Develop the course (actually assembling/creating the training materials).
● Implement training, by actually training the targeted employee group using methods such
as on-the-job or online training.
● Evaluate the course’s effectiveness.

Conducting the Training Needs Analysis SCTCPC

The training needs analysis may address the employer’s strategic/longer term training
needs and/or its current training needs.

1. Strategic Training Needs Analysis

- Strategic goals often mean the firm will have to fill new jobs. Strategic training needs
analysis identifies the training employees will need to fill these future jobs.
- For example, a company decided to build a new high-tech plant, the firm’s top managers
knew the plant’s employees would need new skills to run the computerized machines.
- They worked closely with their HR team to formulate hiring and training programs to
ensure the firm would have the human resources required to populate the new plant.

2. Current Training Needs Analysis

- How you analyze current training needs depends on whether you’re training new or
current employees. The main task for new employees is to determine what the job entails
and to break it down into subtasks, each of which you then teach to the new employee.
- Analyzing current employees’ training needs is more complex, because you must also
ascertain whether training is the solution.
- For example, performance may be down due to poor motivation.

Managers use task analysis to identify new employees’ training needs, and performance analysis
to identify current employees’ training needs.
3. Task Analysis
- For analyzing new employees’ training needs. Particularly with lower-level workers, it’s
customary to hire inexperienced personnel and train them.
- The aim here is to give these new employees the skills and knowledge they need to do the
job.
- Task analysis is a detailed study of the job to determine what specific skills (like reading
spreadsheets for a clerk) the job requires.
- For task analysis, job descriptions and job specifications are essential. They list the job’s
specific duties and skills, which are the basic reference points in determining the training
required.
- Managers also uncover training needs by reviewing performance standards, performing
the job, and questioning current jobholders and their supervisors. Some managers
supplement the job description and specification with a task analysis record form.

4. Competency Profiles And Models In Training And Development

- The competency model consolidates, usually in one diagram, a precise overview of the
competencies someone would need to do the job well.
- For example, the American Society for Training and Development (ASTD) built a
competencies model for the job of training and development professional. It includes 10
core trainer competencies, including being able to achieve performance improvement,
instructional design, and training delivery.
- Training a trainee would thus require, for instance, making sure he or she could, once
training is complete, exhibit these skills and knowledge (competencies). Employers
increasingly focus on building work-related competencies or skills. These show readiness
for specific jobs.
- With many competency-oriented training programs, trainees don’t learn just by taking
classes but through a mix of real-world exercises, teamwork, and online resources, under
a learning coach; the aim is to show mastery of particular competencies.

5. Performance Analysis: Analyzing Current Employees’ Training Needs

- Performance analysis is the process of verifying that there is a performance deficiency
and determining whether the employer should correct such deficiencies through training
or some other means (like transferring the employee).
- Performance analysis begins with comparing the person’s actual performance to what it
should be. Doing so helps to confirm that there is a performance deficiency, and helps the
manager to identify its cause.
- Examples of performance deficiencies might be:
● I expect each salesperson to make 10 new contracts per week, but John averages
only six.
 ● Other plants our size average no more than two serious accidents per month;
we’re averaging five.
- Ways to identify how a current employee is doing include:
➔ Performance appraisals
➔ Job-related performance data (including productivity, absenteeism and tardiness,
grievances, waste, late deliveries, product quality, downtime, repairs, equipment
utilization, and customer complaints)
➔ Observations by supervisors or other specialists
➔ Interviews with the employee or his or her supervisor
➔ Tests of things like job knowledge, skills, and attendance
➔ Attitude surveys
➔ Individual employee daily diaries
➔ Assessment center results
➔ Special performance gap analytical software, such as from Saba Software, Inc.

6. Can’t do/won’t do
- First, determine whether it is a can’t-do problem and, if so, its specific causes.
- For example: The employees don’t know what to do or what your standards are;
there are obstacles in the system such as lack of tools or supplies; there are no job
aids (such as color-coded wires that show assemblers which wire goes where);
you’ve hired people who haven’t the skills to do the job; or training is inadequate.
- Or, it might be a won’t-do problem.
- Here employees could do a good job if they wanted to. Ie, not motivated.
- For instance, the better the solution might be to change the incentives.

Designing the Training Program

● Armed with the needs analysis results, the manager next designs the training program.
Design means planning the overall training program including training objectives,
delivery methods, and program evaluation.
● Sub-steps include setting performance objectives, creating a detailed training outline (all
training program steps from start to finish), choosing a program delivery method (such as
lectures or Web), and verifying the overall program design with management.
● The design should include summaries of how you plan to set a training environment that
motivates your trainees both to learn and to transfer what they learn to the job.
● It is also here that the manager reviews possible training program content (including
workbooks, exercises, and activities), and estimates a budget for the training program.
● If the program is to use technology, the manager should include a review of the
technology he or she plans to use as part of the analysis.
Setting Learning Objectives MR TOL
● Training, development, learning, or instructional objectives should specify in measurable
terms what the trainee should be able to do after successfully completing the training
program.
● The learning objectives should first address the performance deficiencies that you
identified via the needs analysis.
● But at the same time, the learning objectives must be practical, given the constraints.
- One constraint is financial. The employer will generally want to see and approve
a training budget for the program.
- Typical costs include the development costs ( a human resource specialist
working on the program), the direct and indirect costs of the trainers’ time,
participant compensation, and the cost of evaluating the program.
- There are also other constraints to consider. For example, time constraints may
require reducing three or four desirable learning objectives to one or two.

Creating A Motivational Learning Environment

● Learning requires both ability and motivation, and the training program’s design should
accommodate both.
● The learner must be motivated. No manager should waste his or her time showing a
disinterested employee how to do something (even if they have the requisite ability).
● Make sure the trainee’s peers and supervisor support the training effort. Ideally,
particularly for larger programs, top management should visibly support the program.
● Beyond that, various motivation theories provide useful guidance.
- From behavior modification, we know that the training should provide
opportunities for positive reinforcement.
- “Expectancy theory” shows us that the trainees need to know they have the ability
to succeed in the program, and that the value to them of completing the program
is high.
- Self-efficacy is crucial—trainees must believe they have the capacity to succeed.
We can summarize such motivational points as follows.

Make The Learning Meaningful

Learners are more motivated to learn something that has meaning for them. Therefore:
1. At the start of training, provide an overview of the important material
2. Use familiar examples.
3. Organize the information so you can present it logically, in meaningful units.
4. Use terms and concepts that are already familiar to trainees.
5. Use visual aids.
6. Create a perceived training need in trainees’ minds.
Make Skills Transfer Obvious And Easy
Make it easy to transfer new skills and behaviors from the training site to the job site:
1. Maximize the similarity between the training situation and the work situation.
2. Provide adequate practice.
3. Label or identify each feature of the machine and/or step in the process.
4. Direct the trainees’ attention to important aspects of the job.
5. Provide “heads-up” information. For example, supervisors often face stressful conditions.
6. Trainees learn best at their own pace. If possible, let them pace themselves.

Reinforce The Learning

Make sure the learner gets plenty of feedback. In particular:
1. Trainees learn best when the trainers immediately reinforce correct responses
2. Partial-day training is generally superior to full-day training.
3. Provide follow-up assignments at the close of training, so trainees are reinforced by
having to apply back on the job what they’ve learned.
4. Incentivize.

Ensure Transfer Of Learning To The job

- Unfortunately, less than 35% of trainees seem to be transferring what they learned in
training to their jobs a year after training. Improving on that sad statistic requires steps at
each stage of training.
- Prior to training
1. Get trainee and supervisor input in designing the program, institute a training
attendance policy, and encourage employees to participate.
2. Goal-setting is important. In one study, some trainees set goals at the start of the
program for the skills they were being taught. After training, they were rated more
highly on these skills than were those who hadn’t set goals.
- During training, provide trainees with training experiences and conditions (surroundings
and equipment) that resemble the actual work environment.
- After training, reinforce what trainees learned, for instance, by appraising and rewarding
employees for using new skills, and by making sure that they have the tools and materials
they need to use their new skills.

Other training design issues

Managers address several other issues during the training design stage.
- Most importantly, they review alternative training methodologies (lectures, Web-based,
and so on) and choose likely methods for their program.
- They also decide how to organize the various training content components, choose how
to evaluate the program, develop an overall summary plan for the program, and obtain
management’s approval to move ahead.
Developing the Program
● Program development means actually assembling the program’s training content and
materials.
● It means choosing the specific content the program will present, as well as
designing/choosing the specific instructional methods you will use.
● Training equipment and materials include (for example) iPads, workbooks, lectures,
PowerPoint slides, Web- and computer-based activities, course activities, trainer
resources (manuals, for instance), and support materials.
● Some employers create their own training content, but there’s also a vast selection of
online and offline content. The “ATD Education 2015 Program Catalogue” illustrates the
many off-the-shelf training and development offerings available.
● It includes certificate programs on topics such as coaching, consulting skills, and
presentation skills, as well as online workshops on hundreds of topics such as game
design, survey design, and developing a mentoring program.

IMPLEMENTING THE TRAINING PROGRAM

1. On the job (coaching, peer training, job rotation)

2. Apprenticeship (On the job and formal learning)
3. Informal learning (Through Colleagues)
4. Job instruction training (Step by step procedure)
5. Programmed Learning (Online qns, response and feedback)
6. Behaviour Modelling (Show, role-play, feedback, reinforce)
7. Vestibule Training (Stimulated equipment if costly or dangerous)
8. Modern job aids (EPSS- Training, documentation,
phone support, info, checklist, diagrams)
9. Computer based training (Interactive, can replay, text,
image, videos, case studies)
10. Stimulated gaming (Animated guide, 3D stimulation)
11. Lifelong Learning (Throughout the course)
12. Literacy Training (Training people with disabilities- basic skills)
13. Team training (Cross training, interpersonal, leadership, team management, unity)
14. Internet based training (Learning portals, learning management
systems, equally effective, good for large numbers)
15. Virtual Classrooms (Connect, collaborate, share with multiple remote learners online)
Training techniques BA JAIL POVVL
On-the-Job Training
On-the-job training (OJT) means having a person learn a job by actually doing it.

Types of on-the-job training

1. Coaching or understudy method. Here, an experienced worker or the trainee’s
supervisor trains the employee. This may involve simply observing the supervisor, or
(preferably) having the supervisor or job expert show the new employee the ropes, step
by step.
2. Job rotation, in which an employee (usually a management trainee) moves from job to
job at planned intervals, is another OJT technique.
3. Special assignments similarly give lower-level executives firsthand experience in
working on actual problems.
4. Peer Training: Some adopt “peer to peer development.” The employer selects several
employees who spend several days per week over several months learning what the
technology or change will entail, and then spread the new skills and values to their
colleagues back on the job. Others use employee teams to analyze jobs and prepare
training materials. They reportedly conduct task analyses more quickly and effectively
than do training experts.

Apprenticeship Training
● Combination of formal learning and long-term on-the-job training, often under the
tutelage of a master craftsperson.
● New recruits spend about 32 months in an internal apprenticeship training program,
learning various jobs under the tutelage of experienced employees

Informal Learning
● Surveys estimate that as much as 80% of what employees learn on the job they learn
through informal means, including performing their jobs while interacting every day with
their colleagues.
● Employers can facilitate informal learning. For example, one Siemens plant places tools
in cafeteria areas to take advantage of the work-related discussions taking place.

Job Instruction Training

● Many jobs consist of a sequence of steps best learned step-by-step. Such step-by-step
training is called job instruction training (JIT).
● First, list the job’s required steps each in its proper sequence. Then list a corresponding
“key point” (if any) beside each step. The steps in such a job instruction training sheet
show trainees what to do, and the key points show how it’s to be done—and why.
Lectures
● Lecturing is a quick and simple way to present knowledge to large groups of trainees, as
when the sales force needs to learn a new product’s features.

Programmed Learning
● Whether the medium is a textbook, iPad, or the Internet, programmed learning is a
step-by-step, self-learning method that consists of three parts:
1. Presenting questions, facts, or problems to the learner
2. Allowing the person to respond
3. Providing feedback on the accuracy of answers, with instructions on what to do
next
● Generally, programmed learning presents facts and follow-up questions frame by frame.
What the next question is often depends on how the learner answers the previous
question.
● Advantages:
- The built-in feedback from the answers provides reinforcement.
- Programmed learning reduces training time.
- It also facilitates learning by letting trainees learn at their own pace, get
immediate feedback, and reduce their risk of error.

Behavior Modeling
● Behavior modeling involves
1. Showing trainees the right (or “model”) way of doing something,
2. Letting trainees practice that way
3. Giving feedback on the trainees’ performance.
● The basic procedure is as follows:
1. Modeling. First, trainees watch live or video examples showing models behaving
effectively in a problem situation. Thus, the video might show a supervisor
effectively disciplining a subordinate, if teaching “how to discipline” is the aim of
the training program.
2. Role-playing. Next, the trainees get roles to play in a simulated situation; here
they are to practice the effective behaviors demonstrated by the models.
3. Social reinforcement. The trainer provides reinforcement in the form of praise
and constructive feedback.
4. Transfer of training. Finally, trainees are encouraged to apply their new skills
when they are back on their jobs.

Audiovisual-Based Training
● Although increasingly replaced by Web-based methods, audiovisual-based training
techniques like DVDs, films, PowerPoint, and audiotapes are still used.
Vestibule Training
● With vestibule training, trainees learn on the actual or simulated equipment but are
trained off the job (perhaps in a separate room or vestibule).
● Vestibule training is necessary when it’s too costly or dangerous to train employees on the
job.
● Putting new assembly-line workers right to work could slow production, for instance, and
when safety is a concern—as with pilots—simulated training may be the only practical
alternative.
● As an example, UPS uses a life-size learning lab to provide a 40-hour, 5-day realistic
training program for driver candidates.

Electronic Performance Support Systems (EPSS)

● Electronic performance support systems (EPSS) are computerized tools and displays that
automate training, documentation, and phone support.
● Performance support systems are modern job aids. Job aids are sets of instructions,
diagrams, or similar methods available at the job site to guide the worker.75
● Job aids work particularly well on complex jobs that require multiple steps, or where it’s
dangerous to forget a step.

Videoconferencing
● Videoconferencing involves delivering programs over broadband lines, the Internet, or
satellite.
● Vendors such as Cisco offer video conference products such as Webex

Computer-Based Training (CBT)

● Computer-based training refers to training methods that use interactive computer-based
systems to increase knowledge or skills.
● For example, employers use CBT to teach employees safe methods for avoiding falls.
The system lets trainees replay the lessons and answer questions, and is especially
effective when paired with actual practice under a trainer’s watchful eye.
● Computer-based training is increasingly realistic. For example, interactive multimedia
training integrates the use of text, video, graphics, photos, animation, and sound to create
a complex training environment with which the trainee interacts.
● In training a physician, for instance, such a system lets a medical student take a
hypothetical patient’s medical history, conduct an examination, and analyze lab tests.
● Virtual reality training takes this realism a step further, by putting trainees into a
simulated environment.
Simulated Learning and Gaming
● “Simulated learning” include Virtual reality-type games, Step-by-step animated guide,
Scenarios with questions and decision trees overlaying animation, Online role-play with
photos and videos, Software training including screenshots with interactive requests,
● Virtual reality puts the trainee in an artificial three-dimensional environment that
simulates events and situations experienced on the job.
● Sensory devices transmit how the trainee is responding to the computer, and the trainee
“sees, feels and hears” what is going on, assisted by special glasses.
● Training simulations are expensive to create, but for large companies the cost per
employee is usually reasonable. In general, interactive and simulated technologies reduce
learning time by an average of 50%.
● Other advantages include mastery of learning (if the trainee doesn’t learn it, he or she
generally can’t move on to the next step), increased retention, and increased trainee
motivation (resulting from responsive feedback).

Lifelong Training Techniques

Lifelong learning means providing employees with continuing learning experiences over their
tenure with the firm, with the aim of ensuring they have the opportunity to learn the skills they
need to do their jobs and to expand their horizons. Lifelong learning may thus range from basic
remedial skills (for instance, English as a second language) to college.

1. Team Training
● Teamwork does not always come naturally. Companies devote many hours to training
new employees to listen to each other and to cooperate.
● Team training focused on technical, interpersonal, and team management issues. In terms
of technical training, for instance, management encouraged team employees to learn each
other’s jobs, to encourage flexible team assignments.
● Cross training means training employees to do different tasks or jobs than their own;
doing so facilitates flexibility and job rotation, as when you expect team members to
occasionally share jobs.

2. Internet-Based Training
● Employers use Internet-based learning to deliver almost all the types of training we have
discussed to this point.
● Learning portals A learning portal is a section of an employer’s website that offers
employees online access to training courses. Many employers arrange to have an online
training vendor make its courses available via the employer’s portal.
 ● Learning management systems (LMS) are special software tools that support Internet
training by helping employers identify training needs and schedule, deliver, assess, and
manage the online training itself.

Implementing Management Development Programs

Programs Management development is any attempt to improve managerial performance by
imparting knowledge, changing attitudes, or increasing skills. It thus includes in-house programs
like courses, coaching, and rotational assignments; professional programs

Managerial On-the-Job Training and Rotation

Managerial on-the-job training methods include job rotation, the coaching/understudy approach,
and action learning.

Job rotation
- It means moving managers from department to department to broaden their
understanding of the business and to test their abilities.
- In addition to providing a well-rounded training experience, job rotation helps avoid
stagnation through the constant introduction of new points of view in each department.
- It also helps identify the trainee’s strong and weak points.
- Periodic job changing can also improve interdepartmental cooperation; managers become
more understanding of each other’s problems; rotation also widens the acquaintances
among management.

Coaching/understudy approach
- Here the trainee works directly with a senior manager or with the person he or she is to
replace; the latter is responsible for the trainee’s coaching.
- Normally, the understudy relieves the executive of certain responsibilities, giving the
trainee a chance to learn the job.

Action learning programs

- Give managers released time to work analyzing and solving problems in departments
other than their own.
- Its basics include carefully selected teams of 5 to 25 members, assigning them real-world
business problems that extend beyond their usual areas of expertise, and structured
learning through coaching and feedback.
- For example, one Action-Forum Process has three phases:
a. A 6- to 8-week framework phase, during which the team defines and collects data
on an issue
b. The action forum—2 to 3 days at learning center discussing the issue and
developing action-plan recommendations
 c. Accountability sessions, where the teams meet with the leadership group at
monthly intervals to review progress.

Off-the-Job Management Training and Development Techniques

Case study method
- The case study method has trainees solve realistic problems after studying written or
video case descriptions.
- The person then analyzes the case, diagnoses the problem, and presents his or her
findings and solutions in a discussion with other trainees.
- Integrated case scenarios create long-term, comprehensive case situations.

Computerized management games

- Enable trainees to learn by making realistic decisions in simulated situations.
- It raises management trainees’ communication skills, helps them to better manage the
information flow between individuals and the team, and improves planning and
problem-solving skills.
- People learn best by being involved, and games gain such involvement.
- They also help trainees develop problem-solving skills, and focus attention on planning
rather than just putting out fires.
- They can develop leadership skills and foster cooperation and teamwork.
- Gamification of such training also reportedly improves learning, engagement, and morale
and is fairly easy to achieve. For instance, inject point systems, badges, and leaderboards
into the training.

Outside seminars
- Numerous companies and universities offer Web-based and traditional classroom
management development seminars and conferences. Topics range from “developing
your emotional intelligence” to “assertiveness training,” “assertiveness training for
managers,” “assertiveness training for women in business,” “dynamic listening skills for
successful communication,” and “fundamentals of cost accounting.”
- Specialized groups, such as SHRM, provide specialized seminars for their profession’s
members.

University related programs

- Many universities provide executive education and continuing education programs in
leadership, supervision,etc. These can range from 1- to 4-day programs to executive
development programs lasting 1 to 4 months.
Role-playing
- The aim of role-playing is to create a realistic situation and then have the trainees assume
the parts (or roles) of specific persons in that situation.
- When combined with the general instructions and other roles, role-playing can trigger
spirited discussions among the trainees. The aim is to develop trainees’ skills in areas like
leadership and delegating.
- Role-playing may also help someone to be more sensitive to others’ feelings.

Corporate universities
- Many firms establish in-house development centers (often called corporate universities).
- Employers may collaborate with academic institutions, and with training and
development program providers and Web-based educational portals, to create packages of
programs and materials for their centers.
- The best corporate universities
a. Actively align offerings with corporate goals
b. Focus on developing skills that support business needs
c. Evaluate learning and performance
d. Use technology to support learning
e. Partner with academia.
- Many employers offer virtual corporate university services.

Executive Coaches
- Firms retain executive coaches to help develop their top managers’ effectiveness. An
executive coach is an outside consultant who questions the executive’s boss, peers,
subordinates, and (sometimes) family in order to identify the executive’s strengths and
weaknesses, and to counsel the executive so he or she can capitalize on those strengths
and overcome the weaknesses.
- Executive coaching can cost $50,000 per executive. Experts recommend using formal
assessments prior to coaching, to uncover strengths and weaknesses and to provide more
focused coaching.

The SHRM learning System

- The Society for Human Resource Management (SHRM) encourages HR professionals to
qualify for certification by taking examinations.
- The society offers several preparatory training programs. These include self-study, and a
college/university option that includes classroom interaction with instructors and other
learners.
Managing Organizational change Programs
● Companies often find it necessary to change how they do things. Organizational change
may impact a company’s strategy, culture, structure, technologies, or the attitudes and
skills of its employees.
● Making changes is never easy, but the hardest part is often overcoming employee
resistance. Individuals, groups, and even entire organizations tend to resist change,
because they are accustomed to the usual way of doing things or because of perceived
threats to their influence, for instance.

Lewin’s Change Process

● To Lewin, all behavior in organizations was a product of two kinds of forces: those
striving to maintain the status quo and those pushing for change.
● Implementing change thus means reducing the forces for the status quo or building up the
forces for change. Lewin’s process consists of three steps:
1. Unfreezing means reducing the forces that are striving to maintain the status quo,
usually by presenting a provocative problem or event to get people to recognize
the need for change and to search for new solutions.
2. Moving means developing new behaviors, values, and attitudes. The manager
may accomplish this through organizational structure changes, through
conventional training and development activities, and sometimes through the
other organizational development techniques
3. Refreezing means building in the reinforcement to make sure the organization
doesn’t slide back into its former ways of doing things—for instance, change the
incentive system.
● In practice, to deal with employee intransigence, some experts suggest that the manager
use a process such as the following to implement the change: To bring about a desired
organizational change at work:
1. Establish a sense of urgency. Create a sense of urgency. For example, present
employees with a (fictitious) analyst’s report describing the firm’s imminent
demise.
2. Mobilize commitment through joint diagnosis of problems. Create a task force to
diagnose the problems facing the department or the company. This can help to
produce a shared understanding of what can and must be improved.
3. Create a guiding coalition. It’s never easy to implement big changes alone.
Therefore, create a “guiding coalition” of influential people. They’ll act as
missionaries and implementers.
4. Develop and communicate a shared vision of what you see coming from the
change. Keep the vision simple , and lead by example.
 5. Help employees make the change. Eliminate impediments. For example, do
current policies or procedures make it difficult to act? Do intransigent managers
discourage employees from acting?
6. Aim first for attainable short-term accomplishments. Use the credibility from
these to make additional changes.
7. Reinforce the new ways of doing things with changes to the company’s systems
and procedures. For example, use new appraisal systems and incentives to
reinforce the desired new behaviors.
8. Monitor and assess progress. In brief, this involves comparing where the
company or department is with where it should be.

Using Organizational Development

● Beyond this process, there are many other ways to reduce resistance. Among the many
suggestions are that managers impose rewards or sanctions that guide employee
behaviors, explain why the change is needed, negotiate with employees, give
inspirational speeches, or ask employees to help design the change.
● Organizational development (OD) taps into the latter. Organizational development is a
change process through which employees formulate the change that’s required and
implement it, often with the assistance of trained consultants.
● OD has several distinguishing characteristics:
1. It usually involves action research, which means collecting data about a group,
department, or organization, and feeding the information back to the employees so
they can analyze it and develop hypotheses about what the problems might be.
2. It applies behavioral science knowledge to improve the organization’s
effectiveness
3. It changes the organization in a particular direction—toward empowerment,
improved problem-solving, responsiveness, quality of work, and effectiveness.

Team building meetings

● Begins with the consultant interviewing each of the group members and the leader before
the meeting.
● They are asked what their problems are, how they think the group functions, and what
obstacles are keeping the group from performing better.
● The consultant then categorizes the interview data into themes and presents the themes to
the group at the start of the meeting.
● The group ranks the themes in terms of importance, and the most important ones become
the agenda for the meeting.
● The group then explores and discusses the issues, examines the underlying causes of the
problems, and begins devising solutions.
Survey research
● It requires having employees throughout the organization complete attitude surveys. The
facilitator then uses those data as a basis for problem analysis and action planning.
● Surveys are a convenient way to unfreeze a company’s management and employees.
They provide a comparative, graphic illustration of the fact that the organization does
have problems to solve.

Evaluating the training effort

● It is crucial that the manager evaluate the training program. There are several things you
can measure: participants’ reactions to the program, what (if anything) the trainees
learned from the program, and to what extent their on-the-job behavior or results changed
as a result of the program.
● Computerization facilitates evaluation. For example, learning management system
software is used to monitor which employees are taking which courses, and the extent to
which they’re improving their skills.
● Two basic issues:
1. One is the design of the evaluation study, whether to use controlled
experimentation.
2. The second is the question of what should be measured

Designing the Evaluation Study

How can we be sure that the training caused the results that we’re trying to measure?
● The time series design is one option. Here, as in you take a series of performance
measures before and after the training program. This can provide some insight into the
program’s effectiveness.
● Controlled experimentation is a better option. It uses a training group and a control group
that receives no training. Data are obtained both before and after one group is exposed to
training and before and after a corresponding period in the control group.

Training effects to measure.

● The manager can measure four basic categories of training outcomes or effects:
1. Reaction. Evaluate trainees’ reactions to the program. Did they like the program?
Did they think it worthwhile?
2. Learning. Test the trainees to determine whether they learned the principles,
skills, and facts they were supposed to learn.
3. Behavior. Ask whether the trainees’ on-the-job behavior changed because of the
training program. For example, are employees in the store’s complaint department
more courteous toward disgruntled customers?
 4. Results. Most important, ask, “What results did we achieve, in terms of the
training objectives previously set?” For example, did the number of customer
complaints diminish?
● Reactions, learning, and behavior are important. But if the training program doesn’t
produce measurable performance-related results, then it probably hasn’t achieved its
goals.
● How to evaluate?
- You might assess trainees’ learning by testing their new knowledge or by
evaluation questionnaire.
- For behavioral change, perhaps assess the effectiveness of a supervisory
performance appraisal training program by asking that person’s subordinates,
- Directly assess a training program’s results by measuring, say, the percentage of
phone caller questions that call center trainees subsequently answered correctly.
● A careful comparison of the training program’s costs and benefits can enable the human
resource team to compute the program’s return on investment. Online calculators are
available to facilitate such analyses.

The Performance Appraisal Process

● Performance appraisal means evaluating an employee’s current and/or past performance
relative to his or her performance standards. It requires setting performance standards,
and assumes that the employee receives the training, feedback, and incentives required to
eliminate performance deficiencies.
● Performance appraisal always involves the three-step performance appraisal process
1. Setting work standards
2. Assessing the employee’s actual performance relative to those standards
3. Providing feedback to the employee with the aim of helping him or her to
eliminate performance deficiencies or to continue to perform above par.
● Effective appraisals actually begin before the actual appraisal, with the manager defining
the employee’s job and performance criteria.
- Defining the job means making sure that you and your subordinate agree on their
duties and job standards and on the appraisal method you will use.

Who Should Do the Appraising?

● Appraisals by the immediate supervisor are still the heart of most appraisal processes.
The supervisor is usually in the best position to observe and evaluate the subordinate’s
performance, and is responsible for that person’s performance.
● The HR department serves an advisory role. Generally, they provide the advice on what
appraisal tool to use, but leave final decisions on procedures to operating managers. They
also train supervisors to improve their appraisal skills, monitor the appraisal system’s
effectiveness, and ensure that it complies with EEO laws.
 ● However, relying only on supervisors’ appraisals isn’t advisable. For example, an
employee’s supervisor may not appreciate how customers and colleagues see the
employee’s performance. There is also always some danger of bias for or against the
employee. If so, managers have several options.

Peer Appraisals
- People often come across differently to their peers than they do to their boss. Peer
appraisals are therefore increasingly popular.
- An employee due for a peer appraisal chooses an appraisal chairperson. The latter then
selects a supervisor and several peers to evaluate the employee’s work.
- One’s peers see aspects of the person that the boss may never see, so peers’ opinions can
be useful developmentally.
- Knowing your colleagues will appraise you can also change behavior.
- Peer appraisals had “an immediate positive impact on improving perception of open
communication, task motivation, social loafing, group viability, cohesion, and
satisfaction.”

Rating committees:
- A rating committee usually consists of the employee’s immediate supervisor and three or
four other supervisors.
- Using multiple raters is advantageous. It helps cancel out problems such as bias on the
part of individual raters. It can also provide a way to include in the appraisal the different
facets of an employee’s performance observed by different appraisers.
- Studies often find that the ratings obtained from different sources rarely match. It’s
therefore advisable to obtain ratings from the supervisor, his or her boss, and at least one
other manager who is familiar with the employee’s work.

Self ratings
- Some employers obtain employees’ self-ratings, usually in conjunction with supervisors’
ratings. The basic problem, of course, is that employees usually rate themselves higher
than do their supervisors or peers.

Appraisal by subordinates
- Many employers have subordinates rate their managers, usually for developmental rather
than for pay purposes.
- Anonymity affects the feedback: Managers who receive feedback from subordinates who
identify themselves view the upward feedback process more positively.
- Managers who were initially rated poor or moderate “showed significant improvements
in their upward feedback ratings over the five-year period.”
 - Managers who met with their subordinates to discuss their upward assessment improved
more than the managers who did not.

360 Degree Feedback

1. With 360-degree feedback, the employer collects performance information all around an
employee, from his or her supervisors, subordinates, peers, and internal or external
customers, generally for developmental rather than pay purposes.
2. The usual process is to have the raters complete online ratee appraisal surveys.
Computerized systems then compile this feedback into individualized reports to rates.
3. Multisource feedback led to “generally small” improvements in subsequent ratings by
supervisors, peers, and subordinates. Such appraisals are more candid when subordinates
know rewards or promotions are not involved.
4. The feedback the person receives has to be productive, unbiased, and development
oriented.

Techniques for Appraising Performance GAP FCCCB MNM

● Many employers use digital tools to automate the appraisal/ performance management
process. With their digital dashboards, these tools monitor, report, and correct
performance deviations in real time.
● Yet many employers still use traditional performance appraisal tools like those described
next.

Graphic Rating Scale Method

(Can be skill, behaviour, job dimension)
● Simplest and most popular method for appraising performance.
● The scale may list several job dimensions or traits (communication or teamwork) and a
range of performance values (below expectations, unsatisfactory to outstanding)
● The supervisor rates each subordinate by circling or checking the score that best
describes the subordinate’s performance for each trait, and totals the ratings.
● Competency-(Skill/behavior)-based graphic rating scales are another option. This graphic
rating form assesses the person’s competencies and skills. Another example focuses on
behavioral competencies.
● Finally, the scale might rate how well the employee did with respect to achieving specific
profit, cost, or efficiency goals

Alternation Ranking Method

● Ranking employees from best to worst on a trait or traits is another option. Since it is
usually easier to distinguish between the worst and best employees, an alternation
ranking method is most popular.
 ● First, list all subordinates to be rated, and then cross out the names of any not known well
enough to rank. Then, on a form indicate the employee who is the highest on the
performance dimension being measured and the one who is the lowest.
● Then choose the next highest and the next lowest, alternating between highest and lowest
until all employees have been ranked.

Paired Comparison Method

● The paired comparison method makes the ranking method more precise.
● For every trait, you compare every employee with every other employee. With, say, five
employees to rate, you use a chart of all possible pairs of employees for each trait. Then
choose who the better employee of the pair is.

Forced Distribution Method

● The forced distribution method is similar to grading on a curve. With this method, the
manager places predetermined percentages of ratees into performance categories.
● Forced distribution’s big advantage is that it prevents supervisors from rating all or most
employees “satisfactory” or “high.” Forced distribution makes sense as it reflects the fact
that top employees often outperform average or poor ones by as much as 100%
● Forced distribution rating systems may also increase the risk of discriminatory adverse
impact.
● The biggest complaints with this method: 44% said it damages morale. Some writers
refer unkindly to it as “Rank and Yank.” Therefore, appoint a committee to review any
employee’s low ranking.
● Another challenge is to differentiate meaningfully between the other 80%.

Critical Incident Method

● With the critical incident method, the supervisor keeps a log of positive and negative
examples (critical incidents) of a subordinate’s work-related behaviors. Every 6 months
or so, supervisors and subordinates meet to discuss the latter’s performance, using the
incidents as examples.
● Compiling critical incidents as they occur anchors the eventual appraisal in reality and
thus improves appraisal outcomes. It’s thus advisable to keep a diary of employees’
performances. Compiling incidents is useful. It provides examples the supervisor can use
to explain the person’s rating. It makes the supervisor think about the subordinate’s
appraisal all during the year
● The downside is that it doesn’t produce relative ratings for pay raise purposes.

Narrative Forms
● All or part of the written appraisal may be in narrative form. Here the person’s supervisor
assesses the employee’s past performance and required areas of improvement.
 ● The supervisor’s narrative assessment helps the employee understand where his or her
performance was good or bad, and how to improve that performance.

Behaviorally Anchored Rating Scales

● A behaviorally anchored rating scale (BARS) is an appraisal tool that anchors a
numerical rating scale with specific illustrative examples of good or poor performance.
● Developing a BARS typically involves five steps:
1. Write critical incidents. Ask the job’s jobholders and/or supervisors to write
specific illustrations (critical incidents) of effective and ineffective performance
on the job. behaviorally anchored rating
2. Develop performance dimensions. Have these people cluster the incidents into 5
or 10 performance dimensions, such as “salesmanship skills.”
3. Reallocate incidents. Reallocate the original critical incidents to the cluster they
think fits best.
4. Scale the incidents. Rates the behavior described by the incident as to how
effectively or ineffectively it represents performance on the dimension.
5. Develop a final instrument. Choose about six or seven of the incidents as the
dimension’s behavioral anchors.
● The BARS method has several advantages.
- Critical incidents along the scale illustrate what to look for in terms of superior,
average, and poor performance. The critical incidents make it easier to explain the
ratings to appraisees.
- Clustering the critical incidents into five or six performance dimensions (such as
“salesmanship skills”) helps make the performance dimensions more independent
of one another.
- BARS is similar to another appraisal method, Behavioral Observation Scales
(BOS), but the latter involves rating how frequently the ratees exhibit the
illustrative behaviors.

Mixed Standard Scales

● Mixed standard scales are somewhat similar to behaviorally anchored scales. However
they are called mixed scales because the employer “mixes'' together sequentially the good
and poor behavioral example statements when listing them.
● The aim is to reduce rating errors by making it less obvious to the appraiser what
performance dimensions he or she is rating; and whether the behavioral example
statements represent high, medium, or low performance.

Management by Objectives
● The term management by objectives (MBO) usually refers to a multistep company-wide
goal-setting and appraisal program. MBO requires the manager to set specific
 measurable, organizationally relevant goals with each employee, and then periodically
discuss the latter’s progress toward these goals.
● The steps are:
1. Set the organization’s goals. Establish a company-wide plan for next year and set
goals.
2. Set departmental goals. Department heads and their superiors jointly set goals for
their departments.
3. Discuss departmental goals. Department heads discuss the department’s goals
with their subordinates and ask them to develop their own individual goals.
4. Set individual goals. Department heads and their subordinates set short-term
performance targets for each employee.
5. Conduct performance reviews. After a period, department heads compare each
employee’s actual and expected results.
6. Provide feedback. Department heads hold periodic performance review meetings
with subordinates. Here they discuss the subordinates’ performance and make any
plans for rectifying or continuing the person’s performance.

Computerized and Web-Based Performance Appraisal

● Employers increasingly use computerized or Internet-based appraisal systems. Most
enable managers to compile computerized notes on subordinates during the year, and then
to merge these with ratings for the employee on several performance traits.
● The software presents written examples to support part of the appraisal. Most such
appraisals combine several appraisal tools, usually graphic ratings anchored by critical
incidents.
● Within each dimension are separate performance factors for things like writing, verbal
communication, and receptivity to criticism. When the user clicks on a performance
factor, he or she is presented with a graphic rating scale.
● Instead of numerical ratings, Employee Appraiser uses behaviorally anchored examples.
Thus, for verbal communication there are six choices, ranging from “presents ideas
clearly” to “lacks structure.” The manager chooses the phrase that most accurately
describes the worker. Then Employee Appraiser generates an appraisal with sample text.

Electronic Performance Monitoring

● Electronic performance monitoring (EPM) systems use computer network technology to
allow managers to monitor their employees’ computers.
● They allow managers to monitor the employees’ rate, accuracy, and time spent working
online. EPM can improve productivity, but also seems to raise employee stress.
● Some employers digitally track workers’ performance through wearables.
Conversation Days
● Instead of once-a-year performance reviews, some companies now hold semiannual
“conversation days.”
● The stress in these manager-employee conversations is on areas for improvement and
growth, and on setting stretch goals that align with the employee’s career interests.
● There are no explicit performance ratings.

Dealing with Rater Error Appraisal Problems

Systematic errors in judgment

Potential Rating problems

1. Unclear Standards
- Graphic rating scale seems objective but could be unfair because it’s ambiguous
- Different supervisors might define “good” “fair” performance differently
- Important to include descriptive phrases
2. Halo Effect
- Influence of a rater’s general impression on ratings of specific ratee qualities
- Eg.: rating unfriendly employees lower even though they might be doing their
work well
3. Central Tendency
- Rating all employees average
- Less useful for promotion, salary, counseling
- Ranking employees can reduce this problem since you can’t rank all as average
4. Leniency or Strictness
- Tendency to rate all their subordinates high or low
- Solutions: 1) Ranking forces to distinguish between high and low performers 2)
Just recommend to the supervisors to avoid doing this 3) Require a distribution
(10% need to be ranked as excellent; 20% as good)
5. Recency Effects
- Letting your recent interaction with the employee blind you to their performance
over the year

Administering Fair Performance Appraisal

- Base the performance review on duties and standards from a job analysis
- Make it clear ahead of time what your performance expectations are
- Use a standardized performance review procedure for all employees
- Either use multiple raters or have the rater’s supervisor evaluate the appraisal results
- Document the appraisal review process and results
- Indicate what the employee needs to do to improve
- Train the supervisors who will be doing the appraisals
Managing the Appraisal Interview
Four types of appraisal situations:
1. Satisfactory-promotable: Promotion looms and your objective is to develop specific
development plans
2. Satisfactory- not promotable: Promotion is not possible and objective is to maintain
satisfactory performance. Need to find incentives.
3. Unsatisfactory but correctable: Lay out an action plan for correcting the unsatisfactory
performance
4. Unsatisfactory and uncorrectable: Tension times, dismissal is preferred option

How to Conduct Appraisal Interview

- Review the person’s job description, compare performance to the standards and review
any previous appraisals
- Conduct it privately with no interruptions
- Preparation: understanding the problem and the employee
- Planning: reaching agreement on the problem and laying out a change plan in the form of
steps to take, measures of success and date to complete
- Actual coaching
- Some guidelines:
● Talk in terms of objective work data - absences, tardiness, productivity
● Don’t get personal - compare to a standard not to other people
● Encourage the person to talk - stop and listen and ask open ended questions so
you can properly understand their point of view
● Get agreement - the person should leave knowing specifically what they are doing
right and wrong and with agreement on how things should be improved with a
plan and deadlines

How to Handle a Defensive Subordinate

First reaction is often denial - a defense mechanism. Dealing with defensiveness is a skill.
1. Recognize that defensive behaviour is normal (you also don’t become off defensive xD)
2. Never attack a person’s defenses - don’t explain someone to them, instead concentrate on
the fact (eg. sales are low)
3. Postpone action - sometimes it’s best to do nothing. In the heat they may react, so give
them time to think rationally
4. Recognize your limitations - supervisor is probably not a psychologist so be
understanding but you can’t really deal with psychological problems

How to Criticize a Subordinate

- Criticize in a manner that lets the other person maintain their dignity - privately and
constructively
 - Provide examples of critical incidents and specific suggestions
- Never say the person is “always” wrong. It should be objective and free of personal bias
- Many employers are now emphasizing praise over criticism - not to touch on more than
two areas of improvement but instead focus on strengths

How to Handle a Formal Written Warning

- Employee’s performance may be so weak that it requires a written warning :(
- It serves two purposes:
1. Shake your employees out of their bad habits
2. Help you defend your rating to your boss or courts
- Written warnings should include - employee’s standards, make it clear that the employee
was aware of these standards, specify any deficiency relative to the standard, show the
employee had an opportunity to correct their performance.

Using Appraisal Interview to Build Employee Engagement

1. Show the employee how their efforts contribute to company’s success
2. Use the interview to emphasize meaningfulness to the company of what the employee is
doing - “psychological meaningfulness”
3. Those who were able to bring oneself to a role without fear of damage to self-image,
status, career were more engaged. So be candid and objective and do so supportively
without undermining the employee’s self-image - “psychological safety”
4. Make sure employee has what she needs to do a good job-efficacy drives engagement
5. Managers should be candid and honest, but not unnecessarily emphasize negatives
6. Show your employees that you listen and value their contributions

Performance Management
Total Quality Management(TQM) and Performance Appraisal
- TQM even argues for eliminating performance appraisals altogether
- Built on the philosophy encapsulated by many principles:
1. Cease dependence on inspection to achieve quality
2. Aim for continuous improvement
3. Institute extensive training
4. Drive out fear so that everyone may work effectively
5. Remove barriers that rob employees of their pride and workmanship
- Argues that organization is a system of interrelated parts, and employees’ performance is
more a function of training, communication, tools and supervision than of their
motivation. (Basically appraisal is kinda useless, it just promotes fear and barriers for
pride, focus on training and tools instead)
What is Performance Management?
- Performance management - continuous process of identifying, measuring and developing
the performance of individuals and teams and aligning their performance with
organization’s goals.
- 6 basic elements: GC DOOR
1. Direction sharing - communicating the company’s goals to all the employees and
then translating these into doable dept, team and ind goals
2. Goal alignment - having a method that enables managers and employees to see
the link between employees’ goals and those of their departments and company
3. Ongoing performance monitoring - computerized systems to measure the
team’s and/or employees’ progress toward meeting performance goals
4. Ongoing feedback - providing face to face and computerized continuous
feedback regarding progress toward goals
5. Coaching and development support - should be part of feedback process
6. Recognition and rewards - should provide incentives

Career management
Career management is the process for enabling employees to better understand and develop
their career skills and interests and to use these skills and interests most effectively both within
the company and after they leave the firm.
Career development is the lifelong series of activities (such as workshops) that contribute to a
person’s career exploration, establishment, success, and fulfillment.
Career planning is the deliberate process through which someone becomes aware of personal
skills, interests, knowledge, motivations, and other characteristics; acquires information about
opportunities and choices; identifies career-related goals; and establishes action plans to attain
specific goals.

The Psychological Contract

● One implication is that what employers and employees expect from each other is
changing. What the employer and employee expect of each other is part of what
psychologists call a psychological contract.
● This is “an unwritten agreement that exists between employers and employees.”
● The psychological contract identifies each party’s mutual expectations. For example, the
unstated agreement is that management will treat employees fairly and provide
satisfactory work conditions, hopefully in a long-term relationship.
● Employees are expected to respond “by demonstrating a good attitude, following
directions, and showing loyalty to the organization.
Promotions
● Promotions traditionally refer to advancements to positions of increased responsibility.
Most people crave promotions, which usually mean more pay, responsibility, and (often)
job satisfaction.
● As part of the career management, companies move the employees from one level to the
another level and from one job to another job within the company. This process is called
internal mobility.
● According to Paul Pigors and Charles A. Myers, “Promotion is advancement of an
employee to a better job- better in terms of great responsibility, more prestige or status,
greater skill and especially increased rate of pay or salary.

Types of Promotion
1. Vertical promotion- This is the kind of promotion when an employee is promoted from a
lower category to lower category involving increase in salary, status, authority and responsibility.
Generally, promotion means ‘vertical promotion’.
2. Upgradation- When an employee is shifted in the same category, it is called ‘horizontal
promotion’. A junior clerk promoted to senior clerk is such an example. It is important to note
that such promotion may take place when an employee shifts within the same department, from
one department to other or from one plant to another plant.
3. Dry promotion- When promotion is made without increase in salary, it is called ‘dry
promotion’. For example, a lower level manager is promoted to senior level manager without
increase in salary or pay. Such promotion is made either there is resource/fund crunch in the
organisation or some employees hanker more for status or authority than money.

Purpose of Promotion
• To utilize the employees skills, knowledge at the appropriate level in the organization hierarchy
resulting in organizational effectiveness and employee satisfaction
• To develop the competent internal source of employees ready to take up jobs at higher levels in
the changing environment.
• To built loyalty and boost moral
• To improve the sense of belongingness
• To reward committed and loyal employees

Bases of promotion
Organization adopts different bases of promotion depending upon their nature, size, management
etc.
Merit as basis of promotion
Merit is taken to denote an individual employee skill, knowledge, ability, efficiency and aptitude
as measured from educational, training and past employment record.
The merits of merit systems are:
1. The resources of higher order of an employee can be better utilized at higher level. It results in
maximum utilization of human resources in an organisation.
2. Competent employees are motivated to exert all their resources and contribute them to the
organizational efficiency and effectiveness
3. It works as golden handcuffs regarding employee turnover.
4. Further it continuously encourages the employees to acquire new skills and knowledge etc.,
for all round of development.

Managing Transfers
A transfer is a move from one job to another, usually with no change in salary or grade.
Employers may transfer a worker to vacate a position where he or she is no longer needed, to fill
one where he or she is needed, or more generally to find a better fit for the employee within the
firm. Many firms today boost productivity by consolidating positions. Transfers are a way to
give displaced employees a chance for another assignment or, perhaps, some personal growth.
Employees seek transfers for many reasons, including personal enrichment, more interesting
jobs, greater convenience— better hours, location of work, and so on—or to jobs offering greater
advancement possibilities. Transfers for the firm’s convenience—once widely used—are used
less of late.
 Compensation & Managing

Quality Establishing Pay plans: Basics of compensation, factors determining pay rate,
Current trends in compensation; Job evaluation: pricing managerial and professional
jobs. Computerised job evaluation; Pay for performance and Financial incentives:
Money and motivation, incentives for operations employees and executives,
organisation wide incentive plans, practices in Indian organisations; Benefits and
services: Statutory benefits, non-statutory (voluntary) benefits, Insurance benefits,
retirement benefits and other welfare measures to build employee commitment.

Employee compensation includes all forms of pay going to employees and arising from
their employment. It has two main components, direct financial payments (wages,
salaries, incentives, commissions, and bonuses) and indirect financial payments
(financial benefits like employer-paid insurance and vacations). In turn, employers
can make direct financial payments to employees based on increments of time or based
on performance. Time-based pay still predominates. Bluecollar and clerical workers
receive hourly or daily wages, for instance. Others, like managers or Web designers,
tend to be salaried and paid weekly, monthly, or yearly. The second direct payment
option is to pay for performance.

Aligning Total Rewards with Strategy The compensation plan should first advance the
firm’s strategic aims—management should produce an aligned reward strategy. This
means creating a compensation package that produces the employee behaviors the
firm needs to achieve its competitive strategy.2 Put another way, the rewards should
provide a clear pathway between each reward and specific business goals.
. Total rewards encompass traditional pay, incentives, and benefits, but also
“rewards” such as more challenging jobs (job design), career development, and
recognition

The equity theory of motivation postulates that people are motivated to maintain a
balance between what they perceive as their contributions and their rewards. Equity
theory states that if a person perceives an inequity, a tension or drive will develop that
motivates him or her to reduce the tension and perceived inequity.

In compensation, one can address external, internal, individual, and procedural equity.
●● External equity refers to how a job’s pay rate in one company compares to the job’s
pay rate in other companies.
 ●● Internal equity refers to how fair the job’s pay rate is when compared to other jobs
within the same company (for instance, is the sales manager’s pay fair, when compared
to what the production manager earns?).
●● Individual equity refers to the fairness of an individual’s pay as compared with what
his or her coworkers are earning for the same or very similar jobs within the company,
based on each person’s performance.
●● Procedural equity refers to the “perceived fairness of the processes and procedures
used to make decisions regarding the allocation of pay

Managers use various means to address such equity issues. For example, they use
salary surveys (surveys of what other employers are paying) to monitor and maintain
external equity. They use job analysis and comparisons of each job (“job evaluation”) to
maintain internal equity. They use performance appraisal and incentive pay to maintain
individual equity. And they use communications, grievance mechanisms, and
employees’ participation to help ensure that employees view the pay process as
procedurally fair.

Job Evaluation Methods

Job evaluation is a formal and systematic comparison of jobs to determine the
worth of one job relative to another. Job evaluation aims to determine a job’s relative
worth. Job evaluation eventually results in a wage or salary structure or hierarchy (this
shows the pay rate for various jobs or groups of jobs). The basic principle of job
evaluation is this: Jobs that require greater qualifications, more responsibilities, and
more complex job duties should receive more pay than jobs with lesser requirement
Employers use two basic approaches to setting pay rates: market-based
approaches and job evaluation methods. Many firms, particularly smaller ones,
simply use a market-based approach. Doing so involves conducting formal or informal
salary surveys to determine what others in the relevant labor markets are paying for
particular jobs. They then use these figures to price their own jobs. Job evaluation
methods involve assigning values to each of the company’s jobs. This process helps
produce a pay plan in which each job’s pay is equitable based on what other employers
are paying for these jobs and based on each job’s value to the employer.

Compensable Factors - They are the factors that establish how the jobs compare to
one another, and that determine the pay for each job. Some employers develop their
own compensable factors. However, most use factors popularized by packaged job
evaluation systems or by federal legislation. The compensable factors you use depend
on the job and the job evaluation method

Preparing for the Job Evaluation

Job evaluation is a judgmental process and demands close cooperation among
supervisors, HR specialists, and employees and union representatives. The initial steps
include
Identifying the need for the program- dissatisfaction reflected in high turnover, work
stoppages, or arguments may result from paying employees different rates for similar
jobs. Managers may express uneasiness with an informal way of assigning pay rates.

Getting cooperation- Getting employees to cooperate in the evaluation is important.

For example, you can tell employees that because of the impending job evaluation
program, pay rate decisions will no longer be made just by management whim, and that
no current employee’s rate will be adversely affected because of the job evaluation.

Choosing an evaluation committee- The committee usually consists of about five

members, most of whom are employees. Management has the right to serve on such
committees, but employees may view this with suspicion. The evaluation committee
then performs three main functions. First, it usually identifies 10 or 15 key benchmark
jobs. These will be the first jobs they’ll evaluate and will serve as the anchors or
benchmarks against which the relative importance or value of all other jobs is
compared. Next
, the committee may select compensable factors (although the human resources
department will usually choose these). Finally, the committee performs its most
important function—actually evaluating the worth of each job

Job Evaluation Methods:

1) Ranking
The simplest job evaluation method ranks each job relative to all other jobs, usually
based on some overall factor like “job difficulty.
1. Obtain job information- Job analysis is the first step. Here job descriptions for each
job are prepared, and the information they contain about the job’s duties is usually the
basis for ranking jobs
2. Select and group jobs.- The usual procedure is to rank jobs by department or in
clusters (such as factory workers or clerical workers). This removes the need for direct
comparison of, say, factory jobs and clerical jobs.
3. Select compensable factors. - In the ranking method, it is common to use just one
factor (such as job difficulty) and to rank jobs based on the whole job. However
regardless of the number of factors you choose, explain the definition of the factor(s) to
the evaluators carefully so that they all evaluate the jobs consistently
4. Rank jobs. - each rater gets a set of index cards, each of which contains a brief
description of a job. Then they arrange these cards from lowest to highest. Some
managers use an “alternation ranking method” to make this procedure more accurate.
Here you take the cards, first choosing the highest and the lowest, then the next highest
and next lowest, and so forth, until you’ve ranked all the cards
5. Combine ratings.- Usually, several raters rank the jobs independently. Then the
rating committee (or the employer) can simply average the raters’ rankings
6. Compare current pay with what others are paying based on salary survey. -
Next, we show on the same table (in the middle column) what others in the community
benchmark jobaThis helps us ensure that our pay will be externally equitable
7. Assign a new pay scale. -Finally, we compare what we are currently paying for each
job with what others are paying, and decide (in this case) to adjust our pay scale by
raising what we pay for each job.

Drawbacks derive more from how managers use ranking than from the method
itself. For example, there’s a tendency to rely too heavily on “guesstimates” (of things
like overall difficulty), since ranking usually does not use compensable factors
The factor comparison method is a special ranking method. It requires ranking
each of a job’s “factors” (such as education required, experience, and complexity), and
then adding up the points representing the number of “degrees” of each factor each job
has.

2) Job Classification
Job classification (or job grading) is a simple, widely used job evaluation method
in which raters categorize jobs into groups; all the jobs in each group are of roughly the
same value for pay purposes. We call these groups classes if they contain similar jobs,
or grades if they contain jobs that are similar in difficulty but otherwise different. The
usual procedure blends these two: the analysts choose compensable factors and then
develop short class or grade descriptions that describe each class (or grade) in terms of
the amount or level of the factors in those jobs
The classification method has several advantages. The main one is that most
employers usually end up grouping jobs into classes or grades anyway, regardless of
the evaluation method they use. They do this to avoid having to price separately dozens
or hundreds of jobs. Of course, the job classification automatically groups the
employer’s jobs into classes. The disadvantages are that it isn’t easy to write the class
or grade descriptions, and considerable judgment is required to apply them.
3) Point Method
The point method’s overall aim is to determine the degree to which the jobs
you’re evaluating contain selected compensable factors. It involves identifying
several compensable factors for the jobs, as well as the degree to which each
factor is present in each job. The result is a quantitative point rating for each job.
The point method of job evaluation is the most popular job evaluation method
today.
 Disadvantage- time-consuming. Accumulating the information about “how much”
of each compensable factor the job contains is a tedious process. The evaluation
committees must debate the level of each compensable factor in each job. They
then write down their consensus judgments and compute each job’s point values
or rankings
4) Computerized job evaluation-
Most such computerized systems have two main components.61 There is,
first, a structured questionnaire. This contains items such as “enter total number
of employees who report to this position.” Second, such systems may use
statistical models. These allow the computer program to price jobs more or less
automatically, by assigning points based on the questionnaire responses.

Pricing Managerial and Professional jobs

Developing compensation plans for managers or professionals is similar in many

respects to developing plans for any employee. The basic aim is the same: to attract,
motivate, and retain good employees. And job evaluation is about as applicable to
managerial and professional jobs (below the top executive levels) as to production and
clerical ones. Managerial jobs tend to stress harder to-quantify factors like judgment and
problem solving more than do production and clerical jobs. There is also more emphasis
on paying managers and professionals based on their performance or on what they can
do, rather than on static job demands like working conditions. And one must compete in
the marketplace for executives who sometimes have rock star pay. So, job evaluation,
although still important for management jobs, usually plays a secondary role to issues
like bonuses, incentives, market rates, and benefits.

Executive Pay
The traditional wisdom is that company size and performance significantly affect
top managers’ salaries. Yet early studies showed that these explained only about 30%
of CEO pay. Three main factors, job complexity (span of control, the number of
functional divisions over which the executive has direct responsibility, and management
level), the employer’s ability to pay (total profit and rate of return), and the executive’s
human capital (educational level, field of study, work experience), accounted for about
two-thirds of executive compensation variance.
Many employers do use job evaluation for pricing managerial jobs (at least,
below the top jobs). The basic approach is to classify executive and management
positions into grades, each with a salary range. As with nonmanagerial jobs, one
alternative is to rank the executive and management positions in relation to each other,
then group into classes those of similar value. However, firms also use the job
classification and point methods, with compensable factors like position scope,
complexity, and difficulty. As with any jobs, job analysis, salary surveys, and the
fine-tuning of salary levels around wage curves play roles

Compensating Executives

Compensation for a company’s top executives usually consists of four main

elements. Base pay includes the person’s fixed salary as well as, often, guaranteed
bonuses such as “10% of pay at the end of the fourth fiscal quarter, regardless of
whether the company makes a profit.” Short-term incentives are usually cash or stock
bonuses for achieving short-term goals, such as year-to-year sales revenue increases.
Long-term incentives aim to encourage the executive to take actions that drive up the
value of the company’s stock and include things like stock options; these generally give
the executive the right to purchase stock at a specific price for a specific period. Finally,
executive benefits and perks include things such as supplemental executive
retirement pension plans. With so many complicated elements, employers must also be
alert to the tax and securities law implications of their executive compensation
decisions.
Salary is traditionally the cornerstone of executive compensation. On it,
employers layer benefits, incentives, and perquisites—all normally conferred in
proportion to base pay
Executive compensation emphasizes performance (discussed in Chapter 12)
more than do other employees’ pay plans, since organizational results reflect
executives’ contributions more directly than those of lower-echelon employees.93
Indeed, boards are boosting the emphasis on performance-based pay (in part due to
shareholder activism). The big issue here is identifying the appropriate performance
measures. Typical short-term measures include revenue growth and operating profit
margin. Long-term measures include rate of return above some predetermined base.

Compensating Professional Employees

In compensating professionals, employers should first ensure that the person is

actually a “professional” under the law. Employers can use job evaluation for
professional jobs. Compensable factors here tend to focus on problem solving,
creativity, job scope, and technical knowledge and expertise. Firms use the point
method and job classification. Yet, in practice, firms rarely rely on just job evaluation for
pricing professional jobs. Factors like creativity (as noted) are hard to measure, and
non-pay issues often influence professionals’ job decisions. Most employers therefore
emphasize a market-pricing approach for these jobs. They price professional jobs in the
marketplace as best they can, to establish the values for benchmark jobs. Then they
slot these benchmark jobs and their other professional jobs into a salary structure
 contemporary topics in compensation (Don't know if this is there)

Competency-based pay-With competency (generally skill or knowledge-based) pay,

you pay the employee for the skills and knowledge he or she is capable of using rather
than for the responsibilities or title of the job currently held. In practice,
competency-based pay usually comes down to pay for knowledge, or skill based pay.

Broadbanding- Broadbanding means collapsing salary grades into just a few wide
levels or bands, each of which contains a relatively wide range of jobs and pay levels
Comparable worth- Comparable worth refers to the requirement to pay men and
women equal wages for jobs that are dissimilar but of comparable value (for instance
measured in points) to the employer. This may mean comparing dissimilar jobs, such as
nurses to truck mechanics

Board oversight of executive pay - There are various reasons why boards are
scrutinizing their executives’ pay more than in the past. The Dodd-Frank Law of 2010
requires that American companies give shareholders a “say on pay.” Law firms are filing
class-action suits demanding information from companies about their senior executive
pay decisions. The net result is that lawyers specializing in executive pay suggest that
boards of directors (whose compensation committees usually make these pay decisions
in large firms) ask themselves these questions:

Total rewards- Total rewards’ encompass not only compensation and benefits but also
personal and professional growth opportunities and a motivating work environment.”123
It includes not just traditional financial rewards (wages and incentives plus benefits and
perks), but also nonfinancial and intangible rewards such as recognition, the nature of
the job/ quality of work, career development opportunities, good relationships with
managers and colleagues, organizational justice, trust in employees, feeling of being
valued and involved, opportunities for promotion, and a great work climate.126 Total
rewards also include recognition programs and redesigned jobs , telecommuting

Money’s Role In Motivation

Frederick Taylor popularized using financial incentives—financial rewards paid to
workers whose production exceeds some predetermined standard.
Taylor made three contributions. He saw the need for formulating a “fair day’s
work,” namely precise output standards for each job. He spearheaded the scientific
management movement, which emphasized improving work through observation and
analysis. And he popularized using incentive pay to reward employees who produced
over standard
Incentive Pay Terminology
 Managers often use two terms synonymously with incentive plans.2 Traditionally, all
incentive plans are pay-for-performance plans. They all tie employees’ pay to the
employees’ performance. Variable pay is more specific: It is usually an incentive plan
that ties a group’s or team’s pay to some measure of the firm’s (or the unit’s) overall
profitability.

Linking Strategy, Performance, and Incentive Pay

In any case, incentive pay—tying workers’ pay to their performance—is widely popular.6
The problem is that linking pay to performance is easier said than done. Another big
reason for incentive plans’ often-dismal results is the fact that incentives that may
motivate some people won’t motivate others.9 Compensation experts therefore argue
that managers should understand the motivational bases of incentive plans.

Motivation and Incentives

Several motivation theories have particular relevance to designing incentive plans

Motivators and Frederick Herzberg Frederick. Herzberg said the best way to
motivate someone is to organize the job so that doing it provides the challenge and
recognition we all need to help satisfy “higher-level” needs for things like
accomplishment and recognition. Herzberg says the factors (“hygienes”) that satisfy
lower-level needs are different from those (“motivators”) that satisfy or partially satisfy
higher-level needs. If hygiene factors (factors outside the job itself, such as working
conditions, salary, and incentive pay) are inadequate, employees become dissatisfied.
However, adding more of these hygienes (like incentives) to the job (supplying what
Herzberg calls “extrinsic motivation”) is an inferior way to try to motivate someone,
because lower-level needs are quickly satisfied. managers interested in creating a
self-motivated workforce should emphasize “job content” or motivator factors. Managers
do this by enriching workers’ jobs so that the jobs are more challenging, and by
providing feedback and recognition––by making doing the job intrinsically motivating, in
other words. In organizational psychology, intrinsic motivation is motivation that derives
from the pleasure someone gets from doing the job or task. It comes from “within” the
person, rather than from externally, such as from a financial incentive plan.

deMotivators and edward deci. Deci found that extrinsic rewards could at times
actually detract from the person’s intrinsic motivation.

expectancy tHeory and victor vrooM. In general, people won’t pursue rewards they
find unattractive, or where the odds of success are very low. He says a person’s
motivation to exert some level of effort depends on three things: the person’s
expectancy (in terms of probability) that his or her effort will lead to performance;12
instrumentality, or the perceived connection (if any) between successful performance
and actually obtaining the rewards; and valence, which represents the perceived value
the person attaches to the reward.13 In Vroom’s theory: Motivation = (E* I * V), where E
represents expectancy, I instrumentality, and V valence. If E or I or V is zero or
inconsequential, there will be no motivation.
Vroom’s theory has three implications for how managers design incentive plans.
●● First, if employees don’t expect that effort will produce performance, no motivation
will occur. So, managers must ensure that their employees have the skills to do the job,
and believe they can do the job. Thus, training, job descriptions, and confidence
building and support are important in using incentives.
●● Second, Vroom’s theory suggests that employees must see the instrumentality of
their efforts—they must believe that successful performance will in fact lead to getting
the reward. Managers can accomplish this, for instance, by creating easy to understand
incentive plans.
●● Third, the reward itself must be of value to the employee. Ideally, the manager
should take into account individual employee preferences.

Behavior modification. Behavior modification means changing behavior through

rewards or punishments that are contingent on performance. For managers, behavior
modification boils down to two main principles. First, that behavior that appears to lead
to a positive consequence (reward) tends to be repeated, whereas behavior that
appears to lead to a negative consequence (punishment) tends not to be repeated; and
second, that managers can therefore get someone to change his or her behavior by
providing the properly scheduled rewards (or punishment).

Individual employee Incentive and Recognition Programs.

Several incentive plans are particularly suited for use with individual employees.

Piecework. Piecework is the oldest incentive plan and still the most commonly used.
Earnings are tied directly to what the worker produces; the person is paid a piece rate
for each unit he or she produces. Developing a workable piece rate plan requires both
job evaluation and (strictly speaking) industrial engineering. Job evaluation enables you
to assign an hourly wage rate to the job in question. But the crucial issue in piece rate
planning is the production standard, and this standard is often developed by industrial
engineers. The standard hour plan is like the piecework plan, with one difference.
Instead of getting a rate per piece, the worker gets a pay premium equal to the percent
by which his or her performance exceeds the standard.

Advantages and Disadvantages-

They are simple to calculate and easily understood by employees. Piecework plans
appear equitable in principle, and their incentive value can be powerful since they tie
pay directly to performance.
Piecework also has disadvantages. The main one is its unsavory reputation, based
on some employers’ habit of arbitrarily raising production standards whenever they
found their workers earning “excessive” wages. A more subtle disadvantage is that
since piece rates are quoted on a per piece basis, in worker’s minds the production
standard (in pieces per hour) becomes tied inseparably to the amount of money
earned.
Piecework systems thus risk engendering rigidity. When the employer tries to
revise production standards, resistance ensues.17 Employees become preoccupied
with
producing the number of units needed. They can become less focused on quality and
may resist switching jobs (since doing so could reduce productivity). Attempts to
introduce new processes may more likely fail, insofar as they require adjusting
engineered standards. Equipment maintenance tends to decline as employees focus on
maximizing quantity.

Merit Pay as an Incentive Merit pay or a merit raise is a salary increase the firm awards
to an individual employee based on individual performance. It is different from a bonus
in that it usually becomes part of the employee’s base salary, whereas bonuses are
generally one-time payments. Although the term merit pay can apply to the incentive
raises given to any employee, the term is more often used for professional, office, and
clerical employees. Merit pay is the subject of much debate. Advocates argue that
awarding pay raises across the board (without regard to individual merit) may detract
from performance by showing employees they’ll be rewarded regardless of how they
perform. Detractors present good reasons why merit pay can backfire. Most notably,
since many appraisals are unfair, so too are the merit decisions you base them on

Incentives for Professional Employees

Professional employees are those whose work involves the application of learned
knowledge to the solution of the employer’s problems, such as lawyers and engineers.
Making incentive pay decisions for professional employees is challenging. For
one thing, firms usually pay professionals well anyway. For another, they’re already
driven by the desire to produce high-caliber work. However, it is unrealistic to assume
that people like Google engineers work only for professional gratification. Few firms,
therefore, work harder to maintain competitive incentives for professionals. Dual-career
ladders are another way to manage professionals’ pay. At many employers, higher pay
requires rerouting from, say, engineering into management. However, not all
professionals want management. Therefore, many employers institute one path for
managers, and another for technical experts, allowing the latter to earn higher pay
without switching to management.

Nonfinancial and Recognition-Based Awards

Employers often supplement financial incentives with various nonfinancial and
recognition-based awards. The term recognition program usually refers to formal
programs, such as employee-of-the-month programs. Social recognition program
generally refers to informal manager–employee exchanges such as praise, approval, or
expressions of appreciation for a job well done. Performance feedback means providing
quantitative or qualitative information on task performance so as to change or maintain
performance;

Job Design Although not usually considered an “incentive,” job design (discussed in
Chapter 4) can significantly impact employee motivation and retention. A study by
Harvard Business School researchers concluded that job design is a primary driver of
employee engagement.

Incentives for Managers and executives

Managers play a crucial role in divisional and company-wide profitability, and
employers therefore put considerable thought into how to reward them. Most managers
get short-term and long-term incentives in addition to salary

Strategy and the Executive’s Long-Term and Total Rewards Package Whether
consolidating operations or pursuing growth, firms can’t fully implement most strategies
in just 1 or 2 years. Therefore, the long-term signals you send managers via their
long-term incentives can determine whether the firm’s strategy succeeds.
The executives’ reward components—base salary, short- and long-term
incentives, and benefits—must align with each other and with the company’s strategic
aims. Compensation experts suggest first specifying the strategic aims—“What is our
strategy and what are our strategic goals?”—and then deciding what long-term
behaviors (boosting sales, cutting costs, and so on) are important for achieving these
strategic aims.
Next shape each component of the executive total compensation package (base
salary, short- and long-term incentives, and benefits) to encourage these required
behaviors; then group the components into a balanced plan that makes sense in terms
of motivating the executive to achieve the firm’s aims. The point is this: Each pay
component should help focus the manager’s attention on the behaviors required to
achieve the company’s strategic goals.75 Using multiple, strategy-based performance
criteria for incentivizing executives is best. Criteria include financial performance,
number of strategic goals met, employee productivity measures, customer satisfaction
surveys, and employee morale surveys.

Short-Term Incentives and the Annual Bonus For better or worse, employers are
shifting away from long-term incentives to put more emphasis on short-term
performance and incentives. Most firms have annual bonus plans for motivating
managers’ short-term performance. Such short-term incentives can easily produce
plus-or-minus adjustments of 25% or more to total pay. Three factors influence one’s
bonus:
Eligibility- Traditionally, most based annual bonus eligibility on job level/title, base
salary, and/or officer status. Some simply based eligibility on job level or job title, or
salary. The trend is evident from surveys of what determines bonus plan eligibility.
Rather than job title or officer status, salary grade or band was the most common
eligibility determinant,
fund size- one must determine how big the annual bonus fund should be. Most
employers (33% in one survey) traditionally use the sum of targets approach.83 This
means they estimate the likely bonus for each eligible (“target”) employee, and total
these to arrive at the bonus pool’s size
individual performance- Finally, one must decide the actual individual awards.
Typically, the employer sets a target bonus (as well as maximum bonus, perhaps double
the target bonus) for each eligible position. The actual bonus then reflects the
manager’s performance. For example, having previously decided which financial
performance measures (return on assets, revenue growth, and so on) to use to
measure each manager’s performance, the employer computes preliminary total
company bonus estimates, and compares the total amount of money required with the
bonus fund available. . Firms usually tie top-level executive bonuses mostly to overall
corporate results (or divisional results if the executive heads a major division). But as
one moves farther down, corporate profits become a less accurate gauge of a
manager’s contribution.
The simplest method is the split-award plan. This makes the manager eligible
for two bonuses, one based on his or her individual effort and one based on the
organization’s overall performance. One drawback to this approach is that it may give
marginal performers too much— for instance, someone could get a company-based
bonus, even if his or her own performance is mediocre. One way to avoid this is to use
the multiplier method. As Table 12-2 illustrates, multiply the person’s target bonus by
1.00, 0.80, or zero (if the firm’s performance is excellent, and the person’s performance
is excellent, good, fair, or poor). A manager whose own performance is poor does not
even receive the company-based bonus.
Some Other Executive Incentives Companies also offer other executive incentives.
Some incentivize executives to stay with the firm. This is especially important when
executives might flee because another company is stalking the firm with intentions to
buy it. Golden parachutes are extraordinary (large) payments companies make to
executives in connection with a change in company ownership or control.

Team and Organization-Wide Incentive Plans

Team (or group) incentive plans pay incentives to the team based on the team’s
performance. The main aim is to have all your team pulling together. While most
employers just use experience to estimate what the team goal or standard should be
(“20 total labor hours per car”), others carefully engineer their production standards. If
so, the employer will typically base the team incentive on either the piece rate or
standard hour plan. Occasionally, the employer may want to pay team members
according to some other formula. For instance, instead of paying each team member
based on how well the team as a whole does, pay everyone based on how well the best
team member does. This counterintuitive option may make sense when an employer
has reason to believe the new team incentive plan might demotivate high-performing
team members.

Evidence-Based HR: Inequities That Undercut Team Incentives Although about

85% of large employers reportedly use some type of group- or team-based incentives,
studies suggest that team incentives are often counterproductive. Inequity was the big
problem. Sometimes all team members’ financial compensation was the same, although
one or two people “did the lion’s share of the work.” In other cases, the employer chose
one or two team members for promotion, leaving others to feel they’d worked hard to
support someone else’s career. The bottom line is that unless you take steps to
minimize inequities, it may be best to pay employees based on their individual
contributions, rather than on collective team performance. Organization-wide
incentive plans are plans in which all or most employees can participate, and which
generally tie the reward to some measure of company-wide performance. Also called
variable pay plans.

Profit-Sharing Plans
Profit-sharing plans are plans in which all or most employees receive a share of the
firm’s annual profits. There are several types of profit-sharing plans. With current
profit-sharing or cash plans, employees share in a portion of the employer’s profits
quarterly or annually. Here the firm simply distributes a percentage of profits (usually
15% to 20%) as profit shares to employees at regular intervals. With deferred
profit-sharing plans, the employer puts cash awards into trust accounts for the
employees’ retirement.112 Employees’ income taxes on the distributions are deferred
until the employee retires or withdraws funds from the plan (thus “deferred profit
sharing-plans”). Such plans are essentially pension plans “in which the employer has
discretion to determine when and how much the company pays into the plan.

Scanlon Plans Few would argue with the idea that one of the best ways of ensuring
that employees are engaged and committed is to ensure that by pursuing his or her
goals, the worker pursues the employer’s goals as well.
Scanlon plans have five basic features.:
The first is Scanlon’s philosophy of cooperation. This philosophy assumes that
managers and workers. must rid themselves of the “us” and “them” attitudes that
normally inhibit employees from developing a sense of ownership in the company.
A second feature is what its practitioners call identity. This means that in order to focus
employee involvement, the company must articulate its mission or purpose, and
employees must understand how the business operates in terms of customers, prices,
and costs.
Competence is a third basic feature. The program, say three experts, “explicitly
recognizes that a Scanlon plan demands a high level of competence from employees at
all levels.” This suggests careful selection and training.
The fourth feature of the plan is the involvement system. Employees present
improvement suggestions to the appropriate departmental-level committees, which
transmit the valuable ones to the executive-level committee. It then decides whether to
implement the suggestion.
The fifth element of the plan is the sharing of benefits formula. If a suggestion is
implemented and successful, all employees usually share in 75% of the savings.

Other Gainsharing Plans

The Scanlon plan is one early version of today’s gainsharing plans. Gainsharing is
an incentive plan that engages many or all employees in a common effort to achieve
a company’s productivity objectives, with any resulting cost-savings gains shared
among employees and the company.118 In addition to the Scanlon plan, other
popular gainsharing plans include the Lincoln, Rucker, and Improshare plans.
The basic difference among these plans is how employers determine employee
bonuses. The Scanlon formula divides payroll expenses by total sales.

At-Risk Pay Plans Pay for performance can support an employer’s cost control efforts.
Base pay and benefits represent the lion’s share of labor costs, and normally neither
varies much even when sales [Link] example, in an earnings-at-risk pay plan,
employees agree to put some portion (say, 10%) of their normal pay at risk (forego it) if
they don’t meet their goals, in return for possibly obtaining a much larger bonus if they
exceed their goals
Employee Stock Ownership
Plans Employee stock ownership plans (ESOPs) are company-wide plans in which the
employer contributes shares of its own stock (or cash to be used to purchase such
stock) to a trust established to purchase shares of the firm’s stock for employees. The
firm generally makes these contributions annually in proportion to total employee
compensation, with a limit of 15% of compensation. The trust holds the stock in
individual employee accounts. It then distributes the stock to employees upon
retirement (or other separation from service), assuming the person has worked long
enough to earn ownership of the stock.
ESOPs are popular. The company receives a tax deduction equal to the fair
market value of the shares it transfers to the trustee, and can claim an income tax
deduction for dividends paid on ESOP-owned stock. Employees, as noted, aren’t taxed
until they receive a distribution from the trust, usually at retirement.

Employee engagement guide for Managers

Incentives and Engagement. A survey provides some insights into the role of incentive
pay in fostering employee engagement. First, although the compensation professionals
believed that total rewards programs can influence employee engagement, many of
them did not specifically include employee engagement as one of the goals of their
compensation plans. Second, they concluded that the most direct ways to encourage
employee engagement with incentives are (1) to measure the extent to which
supervisors are encouraging their subordinates to be engaged, and (2) to use incentives
to reward supervisors for improving employee engagement. Third, even more important
than the rewards themselves, getting employees involved in developing the rewards
programs was the “gold standard” for building employee cooperation and commitment.

In conclusion, Make improving employee engagement a formal target of your

compensation plan; appraise and incentivize your supervisors partly based on whether
they take steps to improve their subordinates’ engagement; and if possible let
employees participate in devising the compensation plan.

Employee Benefits and Types of Benefits in India-

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Employee welfare in India:
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mployee-welfare-in-india/4628#:~:text=Factories%20Act%2C%201948%3A,process%2
0is%20being%20carried%20on.
 Unit 5
Syllabus:
Labour relations and employee security Industrial relation and collective bargaining: Trade
unions, Collective bargaining, future of trade unionism. Discipline administration: grievances
handling, workplace bullying and harassment; Managing dismissals and separation; Labour
welfare: Importance & implications of labour legislations, Employee health, Auditing HR
functions, Future of HRM function.

Why Do Workers Organize?

● It’s not just money.
● The urge to unionize often comes down to the belief on the part of workers that it’s only
through unity that they can get their fair share of the “pie” and also protect themselves
from the arbitrary whims of management.
● The bottom line is that low morale, fear of job loss, and poor communication (in other
words, poor employee relations) also foster unionization.
● The one major thing unions offer is making you a ‘for cause’ instead of an ‘at will’
employee, which guarantees a hearing and arbitration if you’re fired.”
● It is also seen that the same sorts of policies (such as good benefits, building trust, and
guaranteeing fair treatment) that improve employee engagement may also reduce the
likelihood of being unionized
● Paying attention to employee engagement levels within your organization helps to foster
positive relationships between employees and management and decreases the likelihood
of a workforce seeking union representation

What Do Unions Want?

Unions have two sets of aims:
1. Unions security
● They fight hard for the right to represent a firm’s workers, and to be the exclusive
bargaining agent for all employees in the unit.
● Five types of union security are possible: CUA PM
a. Closed shop: The company can hire only current union members.
b. Union shop: The company can hire nonunion people, but they must join the union
after a prescribed period and pay dues.
c. Agency shop: Employees who do not belong to the union still must pay the union
an amount equal to union dues (on the assumption that the union’s efforts benefit
all the workers).
d. Preferential shop: Union members get preference in hiring, but the employer can
still hire nonunion members.
e. Maintenance of membership arrangement: Employees do not have to belong to
the union.
 ● However, union members employed by the firm must maintain membership in the union
for the contact period

2. Improved Wages, Hours, and Benefits

● Once the union ensures its security at the employer, it fights to improve its members’
wages, hours, working conditions, and benefits.
● The typical labor agreement also gives the union a role in other human resource
activities, including recruiting, selecting, compensating, promoting, training, and
discharging employees.

The Union Drive and election IAHCE

It is through the union drive and election that a union tries to be recognized to represent
employees. It has five basic steps:
1. Initial Contact
a. The union determines the employees’ interest in organizing, and establishes an
organizing committee.
b. The initiative for the first contact between the employees and the union may come from
the employees, from a union already representing other employees of the firm, or from
another union.
c. Once an employer becomes a target, a union official usually assigns a representative to
assess employee interest.
d. The representative visits the firm to determine if enough employees are interested in a
campaign, identifies employees who would make good leaders in the organizing
campaign, and creates an organizing committee.
e. The aim is to educate the committee about the benefits of forming a union and the law
and procedures for forming a local union.
f. The union must follow certain rules when it starts contacting employees.
g. Labour Relations Consultants: Both management and unions typically use “labor
relations consultants.” These may be law firms, researchers, psychologists, labor relations
specialists, or public relations firms. Some are former union organizers. For the employer,
the consultant’s services may range from ensuring that the firm properly fills out routine
labor relations forms to managing the union campaign. Unions may use public relations
firms to improve their image, or specialists to manage corporate campaigns.
h. Union Salting: A union organizing tactic by which workers who are in fact employed
full-time by a union as undercover organizers are hired by unwitting employers.

2. Obtaining Authorization Cards

a. In order to petition for a union election, the union must show that at least 30% of
employees may be interested in being unionized. Employees indicate this interest by
signing authorization cards
b. During this stage, both union and management use propaganda.
c. The union claims it can improve working conditions, raise wages, increase benefits, and
generally get the workers better deals.
d. Management can attack the union on ethical and moral grounds and cite the cost of union
membership.
e. Management can also explain its accomplishments, express facts and opinions, and
explain the law applicable to organizing campaigns.

3. Hold a hearing
a. Once the union collects the authorization cards, one of three things can occur.
b. If the employer chooses not to contest union recognition at all, then the parties need no
hearing, and a special “consent election” is held.
c. If the employer chooses not to contest the union’s right to an election, and/or the scope of
the bargaining unit, and/or which employees are eligible to vote in the election, no
hearing is needed and the parties can stipulate an election.
d. If an employer does wish to contest the union’s right, it can insist on a hearing to
determine those issues. An employer’s decision about whether to insist on a hearing is a
strategic one. Management bases it on the facts of each case, and on whether it feels it
needs more time to try to persuade employees not to elect a union.
e. If companies contest, a hearing happens which addresses issues of:
f. The presence of at least 30% of the employees who have signed the authorization cards
g. Identification of the bargaining unit: The group of employees the union will be authorized
to represent

4. The Campaign
a. During the campaign that precedes the election, union and employer appeal to employees
for their votes. The union will emphasize that it will prevent unfairness, set up grievance
and seniority systems, and improve wages.
b. Management will stress that improvements like those don’t require unions and that wages
are equal to or better than with a union. Management will also emphasize the cost of
union dues; the fact that the union is an “outsider”; and that if the union wins, a strike
may follow
c. But neither side can threaten, bribe or coerce employees.

5. The Election
a. The union becomes the employees’ representative if it wins the election, and winning
means getting a majority of the votes cast, not a majority of the total workers in the
bargaining unit
Union Tactics to Win an Election
1. Reliance on a slow, underground, person-to-person campaign using house calls, small
group meetings, and pre-union associations to develop leadership and union commitment,
and prepare workers for employer anti-union strategies before the employer becomes
aware of the campaign.
2. The union will focus on building active rank-and-file participation, including an
organizing committee reflecting the different interest groups in the bargaining unit.
3. The union will press for a first contract early in the organizing process.
4. The union will use “inside and outside pressure tactics to build worker commitment and
compel the employer to run a fair campaign.”
5. There will be an emphasis during the organizing campaign on issues such as respect,
dignity, and fairness, not just traditional bread-and-butter issues like wages.

What Is Collective Bargaining?

● When the union becomes your employees’ representative, a day is set for management
and labor to meet and negotiate a labor agreement. This agreement will contain specific
provisions covering wages, hours, and working conditions.
● According to the National Labor Relations Act: For the purpose of [this act,] to bargain
collectively is the performance of the mutual obligation of the employer and the
representative of the employees to meet at reasonable times and confer in good faith with
respect to wages, hours, and terms and conditions of employment, or the negotiation of
an agreement, or any question arising thereunder, and the execution of a written contract
incorporating any agreement reached if requested by either party, but such obligation
does not compel either party to agree to a proposal or require the making of a concession.
● This means that both management and labor are required by law to negotiate wage, hours,
and terms and conditions of employment “in good faith.”

What Is Good Faith?

Good faith bargaining is the cornerstone of effective labor–management relations. It means that
both parties communicate and negotiate, match proposals with counter proposals, and make a
reasonable effort to arrive at an agreement. It does not mean that one party compels another to
agree. Nor does it require that either party make any specific concessions

Examples of Bargaining which are not in good faith

1. Surface bargaining. Going through the motions of bargaining without any real intention
of completing an agreement. Inadequate concessions.
2. Unwillingness to compromise. Inadequate proposals and demands.
3. Dilatory tactics. The law requires that the parties meet and “confer at reasonable times
and intervals.” Obviously, refusal to meet with the union does not satisfy the positive
duty imposed on the employer.
 4. Imposing conditions. Attempts to impose conditions that are so onerous or unreasonable
as to indicate bad faith.
5. Making unilateral changes in conditions. This is a strong indication that the employer
is not bargaining with the required intent of reaching an agreement.
6. Bypassing the representative. The duty of management to bargain in good faith
involves, at a minimum, recognition that the union representative is the one with whom
the employer must deal in conducting negotiations.
7. Withholding information. An employer must supply the union with information, upon
request, to enable it to discuss the collective bargaining issues intelligently.

The Negotiating Team

Both union and management send negotiating teams to the bargaining table, and both go into the
bargaining sessions having “done their homework.” First, they acquire data on which to build
their bargaining positions. From compensation surveys they compile data on pay and benefits,
including comparisons with local pay rates and to rates for similar jobs in the industry. Data on
the distribution of the workforce (in terms of age, sex, and seniority, for instance) are important,
because it determines benefits. Internal economic data regarding benefits, earnings, and the cost
of overtime are important too. Union representatives will have sounded out union members on
their desires and conferred with representatives of related unions. Management will also “cost”
the current labor contract and determine the increased cost—total, per employee, and per
hour—of the union’s demands. It will use information from grievances and feedback from
supervisors to determine what the union’s demands might be, and prepare counteroffers and
arguments.

Bargaining Items (US)

Labor law sets out categories of specific items that are subject to bargaining. These are:
1. Voluntary (or permissible) bargaining items are neither mandatory nor illegal; they
become a part of negotiations only through the joint agreement of both management and
union. Neither party can compel the other to negotiate over voluntary items. You cannot
hold up signing a contract because the other party refuses to bargain on a voluntary item,
such as benefits for retirees.
2. Illegal bargaining Items in collective bargaining that are forbidden by law; for example,
a clause agreeing to hire “union members exclusively” would be illegal in a right-to-work
state
3. Mandatory Bargaining items Items in collective bargaining that a party must bargain
over if they are introduced by the other party—for example, pay
Building Negotiating Skills
Experienced negotiators use:
1. Leverage: Things you can leverage include necessity, desire, competition, and time. 59
For example, the union knows that an employer who must fill a big order fast (necessity)
is at a disadvantage.
2. Desire: Similarly, the employer who makes its desires too obvious undercuts its position
3. Time: Time (particularly deadlines) can also tilt things for or against you.
4. Competition: There is no more convincing ploy than subtly hinting you’ve got an
alternative (like shifting services abroad)
5. Information: “Knowledge is power” when negotiating, so having information is
advantageous,
6. Credibility: This supports the information you have
7. Judgment: Good negotiators need judgment: the ability to “strike the right balance
between gaining advantages and reaching compromises, in the substance as well as in the
style of [their] negotiating technique.”

Bargaining Hints
1. Be sure to set clear objectives for every bargaining item, and be sure you understand the
reason for each.
2. Do not hurry.
3. When in doubt, caucus with your associates.
4. Be well prepared with firm data supporting your position.
5. Strive to keep some flexibility in your position.
6. Don’t concern yourself just with what the other party says and does; find out why.
7. Respect the importance of face saving for the other party.
8. Be alert to the real intentions of the other party—not only for goals, but also for priorities.
9. Be a good listener.
10. Build a reputation for being fair but firm.
11. Learn to control your emotions and use them as a tool.
12. As you make each bargaining move, be sure you know its relationship to all other moves.
13. Measure each move against your objectives.
14. Remember that collective bargaining is a compromise process. There is no such thing as
having all the pie.
15. Try to understand the people and their personalities.
16. Remember that excessive bargainer transparency and openness can backfire.

Impasses, Mediation and Strikes

In collective bargaining, an impasse (or stalemate) occurs when the parties are not able to move
further toward settlement. This usually occurs because one party is demanding more than the
other will offer. Ways to resolve an impasse include:

1. Third Party Involvement

a. Negotiators use three types of third-party interventions to overcome an impasse.
b. With mediation, a neutral third party tries to assist the principals in reaching agreement.
The mediator meets with each party to determine where each stands, and then uses this
information to find common ground for bargaining.
c. In certain situations, as in a national emergency dispute, a fact finder is a neutral party
who studies the issues in a dispute and makes a public recommendation for a reasonable
settlement.
d. Arbitration is the most definitive third-party intervention, because the arbitrator may have
the power to determine and dictate the settlement terms.
e. With binding arbitration, both parties are committed to accepting the arbitrator’s award.
f. With nonbinding arbitration, they are not.
g. Arbitration may also be voluntary or compulsory (imposed by a government agency).
h. Interest arbitration centers on working out a labor agreement; the parties use it when
such agreements do not yet exist or when one or both parties are seeking to change the
agreement.
i. Rights arbitration really means “contract interpretation arbitration.” It usually involves
interpreting existing contract terms, for instance, when an employee questions the
employer’s right to have taken some disciplinary action

2. Strikes
a. A strike is a withdrawal of labor. There are four main types of strikes.
b. An economic strike results from a failure to agree on the terms of a contract.
c. Unions call unfair labor practice strikes to protest illegal conduct by the employer.
d. A wildcat strike is an unauthorized strike occurring during the term of a contract.
e. A sympathy strike occurs when one union strikes in support of the strike of another union.
f. The likelihood of and severity of a strike depend partly on the parties’ willingness to
“take a strike.”
g. Picketing, or having employees carry signs announcing their concerns near the
employer’s place of business, is one of the first activities to appear during a strike. Its
purpose is to inform the public about the existence of the labor dispute and often to
encourage them to refrain from doing business with the struck employer
h. Employers have several options when employees strike. One is to temporarily shut down
the affected area and halt operations. A second is to contract out work to blunt the effects
of the strike. A third is to continue operations, perhaps using supervisors and other non
striking workers. A fourth alternative is hiring replacements for the strikers
 i. Strike Guidelines for Employers:
● Pay all striking employees what you owe them on the first day of the strike.
● Secure the facility. Management should control access to the property. Some
employers make preparations with special strike security companies to provide
security during the strike.
● Notify all customers, and prepare a standard official response to all queries.
● Contact all suppliers and others who will have to cross the picket line. Establish
alternative methods of obtaining supplies.
● Arrange for overnight stays in the facility, and for delivered meals, if necessary.
● Notify the local unemployment office of your need for replacement workers.
● Photograph the facility before, during, and after picketing. If necessary, install
video equipment to monitor picket lines.
● Record all facts concerning strikers’ demeanor and activities and such incidents as
violence, threats, mass pickets, property damage, or problems.
● Gather the following evidence: number of pickets and their names; time, date, and
location of picketing; wording on every sign carried by pickets; and descriptions
of picket cars and license numbers.

3. Other Weapons
a. Management and labor each have other weapons to break an impasse. The union, for
example, may resort to a corporate campaign.
b. A corporate campaign is an organized effort by the union to exert pressure on the
employer by pressuring the company’s other unions, shareholders, corporate directors,
customers, creditors, and government agencies.
c. Thus, the union might surprise members of the board of directors by picketing their
homes and organizing a boycott of the company’s banks
d. Boycott refers to the combined refusal by employees and other interested parties to buy or
use the employer’s products
e. Inside games are union efforts to convince employees to impede or to disrupt
production—for example, by slowing the work pace or refusing to work overtime. Inside
games are basically strikes—albeit “strikes” in which the company continues to pay the
employees
f. For their part, employers can try to break an impasse with lockouts. A lockout is a refusal
by the employer to provide opportunities to work. It (sometimes literally) locks out
employees and prohibits them from doing their jobs (and being paid).
g. Both employers and unions can seek a court injunction if they believe the other side is
causing irreparable harm to the other party. An injunction is a court order compelling a
party or parties either to resume or to desist from a certain action.
The Contract Agreement
It may contain just general declarations of policy, or detailed rules and procedures. The tendency
today is toward the longer contract. The main sections of a typical contract cover subjects such
as these:
1. management rights
2. union security and automatic payroll dues deduction
3. grievance procedures
4. arbitration of grievances
5. disciplinary procedures
6. compensation rates
7. hours of work and overtime
8. benefits: vacations, holidays, insurance, pensions
9. health and safety provisions
10. employee security seniority provisions
11. contract expiration date

The Union Movement Today and Tomorrow

● Future trends include online labour unions. Union membership has gradually declined in
America.
● Several factors contributed to the decline in union membership over the past 50 or so
years.
● Unions traditionally appealed mostly to blue-collar workers, and the proportion of
blue-collar jobs has been decreasing.
● Globalization increased competition and pressures on employers to cut costs and boost
productivity, further squeezing unions.
● Other factors pressuring employers and unions include the deregulation of trucking,
airlines, and communications; outdated equipment and factories; mismanagement; new
technology; and laws (such as occupational safety) that somewhat substituted need for
unions.
● Labor–management agreements have included so-called cooperative agreements. These
agreements generally commit union and management to adopt one or more cooperative
themes. Parties commit to adhere to one or more of these cooperative themes: \
- Intent to cooperate
- A statement of commitment to cooperate
- Committees to review mutual concerns that arise
- Decisions on traditional issues
 - Guarantees of employment security
- Commitments to high-performance practices
- Decisions on strategic issues
- Full cooperation

Discipline Administration: Grievance Handling, Workplace Bullying and Harassment, and

Managing Dismissals and Separation

Dealing With Disputes and Grievances

Management and trade unions try to provide benefits to the workers but still workers may feel
dissatisfied. Workers’ dissatisfaction is dealt through grievance procedure. Workers may not
discharge their duties as per the company requirements, Disciplinary procedure deals with these
issues.

Grievance Procedure
Beach defines grievance as “any dissatisfaction or feeling of injustice in connection with one’s
employment situation that is brought to the notice of the management”

Filippo indicates the grievance as “a type of discontent which must always be expressed. A
grievance is usually more formal in character than a complaint. It can be valid or ridiculous, and
must grow out of something connected with company operations or policy. It must involve an
interpretation or application of the provisions of the labour contract.”

Jucius defines grievance as “any discomfort or dissatisfaction, whether exposed or not, whether
valid or not, arising out of anything connected with the company which an employee thinks,
believes or even feels to be unfair, unjust or inequitable.”

The grievance process is the process or steps that the employer and union agreed to follow to
ascertain whether some action violated the collective bargaining agreement. It is the vehicle for
administering the contract day to day. However, this usually involves interpretation only, not
negotiating new terms or altering existing ones.

Grievances are often symptoms of underlying problems. Sometimes bad relationships between
supervisors and subordinates are to blame: This is often the cause of grievances over “fair
treatment,” for instance. Organizational factors like ambiguous instructions also cause frustration
and grievances. Union activism is another cause; the union may solicit grievances from workers
to underscore ineffective supervision. Some individuals are by their nature negative, dissatisfied,
and prone to complaints. Discipline and dismissal are two major sources of grievances
Most collective bargaining contracts contain a grievance procedure. It lists the steps in the
procedure, time limits associated with each step, and specific rules such as “all charges of
contract violation must be reduced to writing

Need for a Grievance Procedure

1. Most grievances seriously disturb the employees. This may affect their morale,
productivity and their willingness to cooperate with the organisation. If an explosive
situation develops, this can be promptly attended to if a grievance handling procedure is
already in place.
2. If not possible that all the complaints of the employees would be settled by first time
supervisors, for these supervisors may not have proper training for the purpose, and they
may lack authority. Moreover, there may be personality conflicts and other causes as
well.
3. It serves as a check on the arbitrary actions of the management because supervisors know
that employees are likely to see to it that their protest does reach the higher management.
4. It serves as an outlet for employee gripes, discontent and frustrations, It acts as a pressure
valve on a steam boiler, the employees are entitled to legislative, executive and judicial
protection and they get this protection from the grievance redressal procedure, which also
acts as a means of upward communication.

Causes of Grievance
● Demands for individual wage adjustments
● Complaints about the incentive system
● Complaints about the job classification
● Complaints against a particular foreman
● Complaints concerning disciplinary measures and procedures
● Objections to the general methods of supervision
● Loose calculation and interpretation of seniority rules and unsatisfactory interpretation of
agreements
● Promotion
● Disciplinary discharge or lay-off
● Transfer for another department or another shift
● Inadequacy of safety and health services/devices
● Non availability of materials in time
● Violation of contracts relating to collective bargaining
● Improper job assignment
● Undesirable or unsatisfactory conditions of work
● Vicitmisation
● fines
 Prerequisites of a Grievance Procedure
1. Conformity with prevailing legislation: While designing the grievance procedure, due
consideration must be given to the existing statutory provisions. In other words, the
existing grievance machinery as provided by law must be made use of
2. Clarity: There should be clarity regarding each and every aspect of the grievance
procedure. An aggrieved employee must be informed about the person to whom a
representation can be made, the form of submission, time limit for the redressal of
grievance, etc. Similarly, the redressing authority should be very clear about what is
expected from him, what measures he can take, the limits within which he should resort
to an action, etc.
3. Simplicity: Grievance procedure should be simple. Every employee must understand the
different stages of the procedure, forms to be filled up, witnesses required, etyc. If there
are too many stages in this procedure, the very purpose of the procedure is defeated,
Instead of resorting to a formal procedure, an employee may ignore it.
4. Promptness: the promptness with which a grievance is processed adds further to the
success of the grievance procedure. Since justice delayed is justice denied, the procedure
should aim at rapid disposal of the grievances.
5. Training: the success of the procedure also depends upon imparting training to the
supervisors and union representatives in handling grievances.
6. Follow up: the successful working of a grievance procedure depends upon a proper
follow-up made by the personnel department. The department periodically should review
the procedure and introduce the essential structural changes making it more effective.

Guidelines for Handling Grievances

The best way for a supervisor to handle a grievance is to develop a work environment in which
grievances don’t arise in the first place. Hone your ability to avoid, recognize, diagnose, and
correct the causes of potential employee dissatisfaction (such as unfair appraisals or poor
communications) before they become grievances.

Do’s Don’t:

Investigate and handle each case as though it may Discuss the case with the union steward alone—the
eventually result in arbitration. grievant should be there.
Talk with the employee about his or her grievance; give Make arrangements with individual employees that are
the person a full hearing. inconsistent with the labor agreement.
Require the union to identify specific contractual Hold back the remedy if the company is wrong.
provisions allegedly violated. Admit to the binding effect of a past practice.
Comply with the contractual time limits for handling the Relinquish to the union your rights as a manager.
grievance. Settle grievances based on what is “fair.” Instead, stick to
Visit the work area of the grievance. the labor agreement.
Determine whether there were any witnesses. Bargain over items not covered by the contract.
Examine the grievant’s personnel record. Treat as subject to arbitration claims demanding the
Fully examine prior grievance records. discipline or discharge of managers.
Treat the union representative as your equal. Give long written grievance answers.
Hold your grievance discussions privately. Trade a grievance settlement for a grievance withdrawal.
Fully inform your own supervisor of grievance matters. Deny grievances because “your hands have been tied by
management.”
Agree to informal amendments in the contract.

Grievance Procedure
Workplace Bullying
What is Workplace Bullying?
● Too complex to have a universal definition
● Repeated stress inducing actions toward another
● Passive, active, overt or covert actions that intimidate, degrade, humiliate, or undermine
another
● Creates feelings of defenselessness

Bullying involves three things:

1. Imbalance of power. People who bully use their power to control or harm, and the people
being bullied may have a hard time defending themselves.
2. Intent to cause harm. Actions done by accident are not bullying; the person bullying has a
goal to cause harm.
3. Repetition. Incidents of bullying happen to the same person over and over by the same
person or group, and that bullying can take many forms, such as:
- Verbal: name-calling, teasing
- Social: spreading rumors, leaving people out on purpose, breaking up friendships
- Physical: hitting, punching, shoving
- Cyberbullying: using the Internet, mobile phones, or other digital technologies to
harm others

Workplace bullying can be subtle or obvious and can include:

● Spreading malicious rumours, gossiping
● Undermining or intentionally impeding another’s work
● Blame or unwarranted criticism without factual justification
● Exclusion, social isolation
● Excessive monitoring, micromanaging, unwarranted punishment
● Blocking training, leave or promotion

Workplace Bullying is NOT:

● A strict supervisor
● Consequences for poor work performance
● Warranted demotion, discipline, counselling, or termination

How does Workplace Bullying Happen?

● Ignorance of the issue
● Bully supported through action or inaction of management
● Stressed employees taking frustrations out on others
● No system of reporting or protection for victims
● Lack of recognition and anti-bullying laws worldwide
How do Targets handle bullying?
● Targets accept the bullying behaviour as part of employment
● Victims fear retribution or losing position for making waves
● 75% of victims end bullying behaviour only by leaving company entirely

Workplace Environments can perpetuate bullying

Bullies work to psychologically and systematically wear the target down to:
● Ensure own job security
● Further own career
● Exert or gain a sense of power
● Instill fear in target ior observers

Motivations for bullying:

● Personal prejudices harbored against others
● Prevent advancement opportunities for target
● Create a scapegoat for workplace stressors such as company downsizing, unreasonable
work demands or work overload
● Create social isolation of target

Bully-Target Relationships
1. Top-Down: Managers and supervisor who bully subordinates
2. Horizontal: Peers who bully coworkers in similar job positions
3. Bottom Up: Workers who bully supervisors or managers

Target risk Factors:

● Perceived as threat to job security or advancement
● Negative interpersonal relationships or role conflicts
● High risk job sectors or level of employment
● Viewed as weak or easy to victimize
● Diversity issues:
- Race, culture, ethnicity, national origin, religion
- Age, gender, personality traits, physical characteristics
- Sexual or gender orientation

Managing Dismissals
Dismissal —involuntary termination of an employee’s employment with the firm. Many
dismissals are avoidable. For example, many dismissals flow from bad hiring decisions. Using
assessment tests, background checks, drug testing, and clearly defined jobs can reduce such
dismissals.
Grounds for Dismissal
1. Unsatisfactory Performance refers to a persistent failure to perform assigned duties or
to meet prescribed standards on the job. Specific reasons include excessive absenteeism,
tardiness, a persistent failure to meet normal job requirements, or an adverse attitude.
2. Misconduct is deliberate and willful violation of the employer’s rules and may include
stealing and rowdy behavior.
3. Lack of qualifications for the job is an employee’s inability to do the assigned work,
although he or she is diligent. Because this employee may be trying to do the job, it is
reasonable to try to salvage him or her—perhaps through further training or by assigning
the employee to another job.
4. Changed requirements of the job is an employee’s incapability of doing the job after
the nature of the job has changed. Similarly, you may have to dismiss an employee when
his or her job is eliminated. Again, the employee may be industrious, so it is reasonable
to retrain or transfer this person, if possible.
5. Insubordination, a form of misconduct, is sometimes the grounds for dismissal. The two
basic categories of insubordination are unwillingness to carry out the manager’s orders,
and disrespectful behavior toward the manager. Examples of insubordination include:
● Direct disregard of the boss’s authority
● Direct disobedience of, or refusal to obey, the boss’s orders, particularly in front
of others
● Deliberate defiance of clearly stated company policies, rules, regulations, and
procedures
● Public criticism of the boss
● Blatant disregard of reasonable instructions
● Contemptuous display of disrespect
● Disregard for the chain of command
● Participation in (or leadership of) an effort to undermine and remove the boss
from power

Fairness Safeguards
Dismissals are never easy. However, the manager can take steps to make them fair.
1. Allow the employee to explain why he (or she) did what he did. It could turn out, for
instance, that the employee “disobeyed” the order because he or she did not understand it.
Similarly, people who get full explanations of why and how termination decisions were
made “were more likely to perceive their layoff as fair … and indicate that they did not
wish to take the past employer to court.”
2. Have a formal multistep procedure (including warning) and an appeal process.
3. The person who actually does the dismissing is important. Employees in one study whose
managers informed them of an impending layoff viewed the dismissal fairer than did
 those told by, say, a human resource manager. Use the right person, and dismiss
humanely.
4. Dismissed employees who feel they’ve been treated unfairly financially are more likely
to sue. Many employers use severance pay to blunt a dismissal’s sting.

Know your employment Law: Termination at Will

Without an employment contract, either the employer or the employee can terminate at will the
employment relationship. In other words, the employee could resign for any reason, at will, and
the employer could similarly dismiss an employee for any reason, at will. Three main protections
against wrongful discharge eroded the termination at-will doctrine—statutory exceptions,
common law exceptions, and public policy exceptions
1. Statutory Exceptions: include federal and state equal employment and workplace laws
that prohibit certain dismissals.
2. Common Law exceptions: Courts create these exceptions based on precedents. For
example, courts have held that employee handbooks promising termination only “for just
cause” may create an exception to the at-will rule
3. Public Policy Exceptions: courts have held a discharge to be wrongful when it was
against a well-established public policy. Thus, a public policy exception might prohibit an
employer from firing an employee for refusing to break the law

Avoiding Wrongful Discharge Suits

Wrongful discharge (or termination) occurs when an employee’s dismissal does not comply with
the law or with the contractual arrangement stated or implied by the employer. In a constructive
discharge claim, the plaintiff argues that he or she quit, but had no choice because the employer
made the work situation so intolerable.
Avoiding wrongful discharge suits requires several things.
1. Have employment policies including grievance procedures that help show you treat
employees fairly. Here employers can also use severance pay to blunt a dismissal’s sting.
No termination is pleasant, but the first line of defense is to handle it justly.
2. Review and refine all employment-related policies, procedures, and documents to limit
challenges. Procedural steps include:
● Have applicants sign the employment application. Make sure it contains a
statement that “the employer can terminate at any time.”
● Review your employee manual to delete statements that could undermine your
defense in a wrongful discharge case. For example, delete “employees can be
terminated only for just cause.”
● Have written rules listing infractions that may require discipline and discharge.
● If a rule is broken, get the worker’s side of the story in front of witnesses, and
preferably get it signed. Then check out the story.
 ● Be sure that employees get a written appraisal at least annually. If an employee
shows evidence of incompetence, give that person a warning. Provide an
opportunity to improve.
● Keep careful confidential records of all actions such as employee appraisals,
warnings or notices, and so on

Security Measures
● Prudence suggests using a checklist to ensure (for instance) that dismissed employees
return all keys and company property, and (often) accompany them out of the building.
● The employer should disable Internet-related passwords and accounts of former
employees, plug holes that could allow an ex-employee to gain illegal online access, and
have rules for return of company laptops and handhelds.

Supervisor Liability
Courts may hold managers personally liable for their supervisory actions, including dismissals.
For example, the Fair Labor Standards Act defines an employer to include “any person acting
directly or indirectly in the interest of an employer in relation to any employee.” This can mean
the individual supervisor. There are several ways to avoid having personal liability become an
issue.
1. Follow company policies and procedures. An employee may initiate a claim against a
supervisor who he or she alleges did not follow policies and procedures.
2. Administer the dismissal in a manner that does not add to the employee’s emotional
hardship (as would having the employee publicly collect his or her belongings and leave
the office).
3. Do not act in anger, since doing so undermines the appearance of objectivity.
4. Finally, use the HR department for advice regarding how to handle difficult dismissal
situations.

Exit Process and Termination Interview

Termination interview is an interview in which an employee is informed of the fact that he or she
has been dismissed. Guidelines for the termination interview itself are as follows:
1. Plan the interview carefully. This includes:
● Make sure the employee keeps the appointment time.
● Never inform an employee over the phone.
● Allow 10 minutes as sufficient time for the interview.
● Use a neutral site, not your own office.
● Have employee agreements, the human resource file, and a release announcement
prepared in advance.
● Be available at a time after the interview in case questions or problems arise.
● Have phone numbers ready for medical or security emergencies.
 2. Get to the point. When the employee enters the office, give the person a moment to get
comfortable and then inform him or her of your decision.
3. Describe the situation. Briefly, in three or four sentences, explain why the person is
being let go. For instance, “Production in your area is down 4%, and we are continuing to
have quality problems. We have talked about these problems several times in the past 3
months, and the solutions are not being followed through on. We have to make a change.”
Don’t personalize the situation as in, “Your production is just not up to par.” Emphasize
the decision is irrevocable. Preserving the employee’s dignity is crucial.
4. Listen. Continue the interview until the person appears to be talking freely and
reasonably calmly.
5. Review the severance package. Describe severance payments, benefits, access to office
support people, and the way references will be handled. However, under no conditions
make any promises of benefits beyond those already in the support package.
6. Identify the next step. The terminated employee may be disoriented and unsure what to
do next. Explain where the employee should go next, upon leaving the interview

Outplacement Counseling
With outplacement counseling the employer arranges for an outside firm to provide terminated
employees with career planning and job search skills.

For the Employee

Actively explore what (if anything) you did to contribute to the problem. Then objectively
consider what you might do differently in the future, keeping in mind that you should view the
loss (difficult though this may be) as an opportunity. Then evaluate your new options and be
ready to seize the right opportunity

Exit Interview
Many employers conduct exit interviews with employees leaving the firm. These are interviews,
usually conducted by a human resource professional just prior to the employee leaving, that elicit
information aimed at giving employers insights into their companies. Exit interview questions
include: How were you recruited? Was the job presented correctly and honestly? What was your
supervisor’s management style like? How do the employees on the team get along?

Exit Process
The exit interview is just one part of a rational exit process. The employer should follow a
checklist. Again ensure, for example, that the employee returns all keys and company equipment,
that all computer and database password access is terminated, that proper communications are
sent internally (for instance, to other employees if appropriate, and to payroll) and externally,
that the employee leaves the premises in a timely fashion, and that if necessary precautions are
followed to ensure security.
Layoffs and the Plant Closing Law
Nondisciplinary separations may be initiated by either employer or employee. For the employer,
reduced sales or profits or the desire for more productivity may require layoffs. Employees may
leave for better jobs, to retire, or for other reasons
A layoff, in which the employer sends workers home for a time for lack of work, is usually not a
permanent dismissal (although it may turn out to be). Rather, it is a temporary one, which the
employer expects will be short term.

Firm’s Layoff Process:

● Senior management first met to make strategic decisions about the size and timing of the
layoffs.
● They also debated the relative importance of the skills the firm needed going forward.
● Supervisors then assessed their subordinates, rating their nonunion employees either A,
B, or C (union employees were covered by a union agreement making layoffs dependent
on seniority).
● The supervisors then informed each of their subordinates about his or her A, B, or C
rating, and told each that those with C grades were most likely to be laid off

Layoff’s Effects:
● layoffs often result in “deleterious psychological and physical health outcomes” for those
losing their jobs as well as for survivors
● In one study, researchers “found that the more managers were personally responsible for
handing out notices to employees … the more likely they were to report physical health
problems, to seek treatment for these problems, and to complain of disturbed sleep
● many employers try to minimize layoffs and dismissals during downturns. Reducing
everyone’s work hours and mandating vacations are two options.
● Others reduce layoffs by offering financial bonuses for improved productivity.
● Ironically, when some employees most need employee assistance programs (such as
counseling)—after they’re laid off—they lose them

Adjusting to Downsizings and Mergers

Downsizing means reducing, usually dramatically, the number of people employed by a firm.
The basic idea is to cut costs and raise profitability. Downsizings (some call them “productivity
transformation programs”) require careful consideration of several matters.
● Making sure the right people are let go; this requires having an effective appraisal system
in place.
● Compliance with all applicable laws
● Executing the dismissals in a manner that is just and fair.
● Security, for instance, retrieving keys and ensuring that those leaving don’t take
prohibited items with them.
 ● Reducing the remaining employees’ uncertainty and addressing their concerns. This
typically involves a post-downsizing announcement and program, including meetings
where senior managers field questions from the remaining employees.

❖ Providing advanced notice regarding the layoff can help cushion the otherwise negative
effects.
❖ So can interpersonal sensitivity (in terms of the manager’s demeanor during layoffs).
❖ Layoffs can be more challenging abroad due to special legal obligations, such as
requirements for a year’s notice in some countries.
❖ Supportiveness and creativity are especially important in high- performance
work-system-type firms. These rely heavily on employee engagement and teamwork.
❖ Here, turnover is especially disruptive, so it may be particularly important to avoid
layoffs. Options here include: implement pay freezes or cuts; introduce a hiring freeze
before reducing the workforce; provide candid communications about the need for the
downsizing; give employees an opportunity to express their opinions about the
downsizing; and be fair and compassionate in implementing the downsizing.

Labour Legislation
● The term ‘Labor Legislation’ is used to cover all the laws which have been enacted to
deal with employment and non-employment, wages, working conditions,industrial
relations, social security and welfare of persons employed in industries.
● Thus ‘Labor Legislation’ refers to all laws of the government to provide social and
economic security to the workers.
● These acts are aimed at reduction of production losses due to industrial disputes and to
ensure timely payment wages and other minimum amenities to workers.

Objectives of Labour Legislation

● Preservation of healthy, safety and welfare of labour
● Maintenance of good relation between employer and employee
● Safe-guard the labour from profit seeking exploiters in the cut-throat competitive era.
● Promote harmony between employers and employee
● Achievement of cordial industrial relation.
● Strengthen industrial relation
● Provide mechaneary to solving industrial dispute
● Ensuring the protection of interest of women and children in the factories.

Facilities provided by Labour Legislation

1. Welfare
2. Health
3. Safety
Nature of Labour Legislation
● Products of Industrial Revolution
● Regards Individual as a worker
● Deals with problems of Labor
● It Is Role -Relation
● Regulates Conditions of Labor

Laws were also made to regulate the labor management relations. Some of them are :
1. The Industrial Disputes Act, 1947
2. The Trade Unions Act, 1926, and
3. The Industrial Employment (Standing Orders ) Act,
1946.

Labor legislations ensuring labor welfare and minimum standards were also enacted. Some
of them are:
1. The Factories Act, 1948
2. The Minimum Wages Act, 1948
3. The Payment of Wages Act, 1936, and
4. The Payment of Bonus Act, 1965.

Types Of Labor Legislations

I) Protective Labor Legislations:
The legislations whose primary purpose is to protect minimum labor standards and improve
Working conditions are protective labor legislations. Legislations laying down the minimum
labor standards in the areas of work, safety, employment of children and women and also the
manner of wage payment come under this category. The Indian labor laws under this category
are :
1)The Factories Act, 1948,
2)The Mines Act, 1952,
3)The Plantation Labor Act, 1951,

II )Regulative Legislations:
The legislations whose primary purpose is to regulate the relations between employers and
employees and to provide for methods and manners for settling industrial disputes are Regulative
Legislations. This laws also regulate the relationships between workers and trade unions, the
rights and obligations of the organizations of employers and workers, as well as
their mutual relationships. The laws under this category are as follows :
1) The Trade Unions Act, 1926,
2) The Industrial Disputes Act, 1947, and
3) The Industrial Employment (Standing Orders) Act, 1946
III) Social Security Legislations:
The Legislations which intend to provide social security benefits to the workmen during certain
contingencies of life are Social Security Legislations. Though this legislation may cover other
classes of citizens also, their primary goal has been to protect the workers.
The laws under this category are as follows:
1) The Workmen's Compensation Act, 1923,
2) The Employees State Insurance Act, 1948,
3) The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948,
4) The Employees Provident Funds and Miscellaneous Provisions Act, 1952
5) The Maternity Benefit Act, 1961, and
6) The Payment of Gratuity Act, 1972.

IV) Welfare Legislations:

The legislations which aim at promoting the general welfare of the workers and improve their
living conditions are Welfare legislations. Such laws carry the term “Welfare” in their titles. The
Laws under this category are as follows :
1) Mica Mines Labor Welfare Fund Act, 1946,
2) Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines labor Welfare Fund Act, 1976
3) Beedi Workers Welfare Fund Act, 1976.

● All of these laws provide for the funds which are spent on improving the general welfare
of workers including housing, medical, educational and recreational facilities.

Principles of Labour Legislation

● Social Justice
● Social Equality or Welfare
● National Economy
● International Uniformity

Importance of Labour Legislation

● Labour law regulates not only the condition of work of industrial establishment but also
industrial relation, payment of wages, registration of trade unions.
● It defines legal rights and obligations of employees and employers and also provides
guidelines for their relationship.
● Labour legislation has helped the workers to remove economic insecurity to a great
extent.
● Labour legislation helps the workers in getting basic amenities and benefits in terms of
occupational security.
 ● With the enactment of labour legislation organization have to provide hygiene and well
maintained working condition to their employees
● Helps in economic development of the country
● To deal with industrial dispute
● To enforce social insurance and labour welfare scheme
● Necessary for health, safety, and welfare of workers
● For the achievement of socio-economic progress
● Encourages and facilitate the workers in the organization

Labour laws in India

1. The Factories Act, 1948
a. This respective law was created to defend the rights and interest of the workers to prevent
it from any sort of exploitation done by the factory owners. In this law, it’s stated that the
employers and the Indian labor law factory owners have to assure some sort of working
condition for the employees.
b. It’s clearly stated that the maximum working hour should not be more than 48 hours a
week. And a weekly holiday is a must.

2. The Employees Provident Fund Act, 1947

a. The Employees Provident Fund (PF) 1952 is sanctioning to make accessible a type of
social sanctuary to the commercial employees.
b. This particular Act is applicable for every employee who works in a factory or any other
establishment enclosed by the systems and any other than a left out an employee who is
permitted to work for it and who have to become a member of the fund from the very
date of joining the factory.
c. Under it, you get the welfares such as medical care, retirement pension, housing,
education of benefits and financing insurance policy, etc

3. The Maternity Benefit Act, 1961

a. This act is of a great benefit for the expecting mother or woman. Since its inception
women stopped worrying about giving birth to their child as they started getting
maternity leaves much more easily and as this act protects them and their child.
b. This act aims to safeguard the dignity of parenthood by providing payment for the
complete care of the woman and her child at the time of maternity when she is off on
leave or when she is not working.
c. NOTE: Every pregnant working woman is qualified for maternity leave, health care, and
several other benefits if she has worked with the respective organization for at least 80
days. Moreover, the pregnant ladies are entitled to do light work for 10 weeks more as
soon as she joins the office again. And, if the employer is not providing such benefits
then the employers could also be imprisoned.
4. The Apprentices Act, 1961
a. The Apprentices Act is taken care of so that it could develop the old skill by providing
theoretical as well as practical training in the market.
b. Under this act, one is permitted to take casual leave of 12 days, medical leave of 15 days
and certain other leaves of 10 days in a year. And one is just required to work for 42 or 48
hours a week.

5. The Workmen’s Compensation Act, 1923

a. It is one of its kinds that is helpful for the person injured in an accident. The Workmen’s
Compensation Act 1923, intends to provide financial protection to the workers as well as
their dependents in the form of compensation, in the case of accidental injury.

6. The Payment of Gratuity Act, 1972

a. Gratuity is a part of the salary received by the employees. The company has to provide
them this in the form of gratitude for the services performed by them during their tenure.
b. It is one of the retirement benefits that the organization gives to its employees at the time
of leaving the company. But for this, they have to complete one year of service to get the
benefit of gratuity in case of his or her death.

7. The Payment of Wages Act, 1936

a. It aims at dodging avoidable delay of reimbursement of wages without any sort of
deduction from the wages. Under this, the employers have no right to take away any
money and they have to pay the reimbursement each month on time.
b. To your surprise, even if you are terminated from the services you are qualified to take
your salary for that particular month.

8. The Industrial Disputes Act, 1947

a. This labor law in India is found meaningful by many. For example: If you have a dispute
with your boss you could settle it down through legal means. The employer can’t throw
you out just like that. They have to give a notice of at least 6 weeks before they fire you
out.

9. The Payment of Bonus Act, 1965

a. As a part of profit or productivity the Payment of Bonus Act 1965 targets to provide a
bonus to their employees.
b. This act is more helpful for the employees who receive their salary or wages up to
Rs.15,000 per month and who are involved in any sort of work.
c. No matter if they are skilled, unskilled, highly skilled, they are entitled to get the bonus if
they have worked for at least 30 working days in that particular year. And, do not forget
 to note that within that time period of one year, you can claim your right to the payable
bonus.

10. The Employees State Insurance Act (ESIC), 1948

a. This act safeguards benefits for the workers who are sick and got injured somehow while
they were working.
b. ESIC is a self-financing security form and a health insurance scheme for all workers.
This scheme provides medicinal benefit for the employees and their families.
c. It also delivers dependents' benefits for the dependent relative in case of death due to any
sort of employment injury.
d. In such a case, the employers should deduct and deposit the money each month in the
employee’s A/C. Moreover, they should also grant leave to the protected (insured)
employees based on their sickness certificates. And, the employer also has to cover the
expenditures in case of a funeral or any other sort of tragedy that happened with their
employees.

Labour Welfare Officer

Who is a Labour welfare officer?
● Schedule 49 of the Factories Act 1948, provides that in every factory wherein 500 or
more workers are ordinarily employed, the employer shall appoint a person who can act
as amadvisory_counsellor, mediator and liaising between the management and the labour,
for improving the efficiency, productivity and profitability of organization. Here,s/he is
called a Labour Welfare officer.
● Professionally he or she should be Post Graduate in Social
● Science,diploma in Labour welfare, recognised by the State Government, 3-5 years
working experience in Industrial Safety and finally having hard working ability and
sound communication Skills.

Main objectives of this Position:

● To eliminate the evils of the jobber system in the recruitment of labour
● To develop and improve the labour administration in mills/factories.
● To serve as a liaison with the State Labour Commissioners Duties of Labour Welfare
officer:

Duties of Labour Welfare Officer

The Malaviya Committee's Report on Labour Welfare in 1969, following the model rules framed
under the Factories Act of 1948, has specified the following duties of welfare officers.
1. Supervision
● Safety, health and welfare programmes like recreation and sanitation services as
provided under the law
 ● Working of Joint Committees
● Grant of Leave with wages as provided
● Redress of workers' grievance
2. Advice
● Formulating welfare policies
● Apprenticeship training programs
● Complying with statutory obligations to workers
● Developing frigning benefits
● Workers’ education
3. Liaison
● Liaison with workers so that they may
- Appreciate the needs for harmonious industrial relations in the plant
- Resolve disputes, if nay
- Understand the limitations under which they operate
- Interpret company policies correctly
● Liaison with management so that they may
- Appreciate the worker’s view point on various matters connected with the
plant
- Meet their obligations under the Act
- Maintain harmonious industrial relations in the plant
- Suggest measures for the promotion of the general well-being of workers
● Liaison with inside factory agencies
- such as the factory inspector, medical officers, and other inspectors with a
view to securing a proper enforcement of the various Acts as applicable to
the plant
● Liaison with other agencies in the community with a view to
- helping workers to make use of community services.
● Liaison with the state labour commissioner with a view to
- administration of welfare involves decisions on (i) welfare policy
(ii)organization of welfare, and (iii) assessment of effectiveness
4. Counselling
● The latest trend catching up in the corporate HR across the world is “Employee
Counselling at Workplace”
● In the world of ever increasing complexity and the stress in the lives,especially
the workplaces of the employees, employee counseling has emerged as the latest
HR tool to attract and retain its best employees and also to increase the quality of
the workforce.
● In today's fast-paced corporate world, there is virtually no Organisation free of
stress or stress-free employees.
 ● The employees can be stressed, depressed, suffering from too much anxiety
arising out of various workplace related issues like managing deadlines, meeting
targets, lack of time to fulfill personal and family commitments, or bereaved and
disturbed due to some personal problem etc.
● Organisations have realized the importance of having stress-free yet motivated
and capable workforce.

Role and Responsibility of Welfare Officer under Factory Act Rules :-

1. To encourage provision of amenities such as canteens, shelters for rest, creches, adequate
latrine facilities, drinking water, sickness and benevolent scheme payments, pension and
superannuation funds, gratuity payments, granting of loans and legal advice to workers;
2. To help the factory management in regulating the grant of leave with wages and explain
to the workers the provisions relating to leave with wages and other leave privileges and
to guide the workers in the matter of submission of application for grant of leave for
regulating authorised absence;
3. To advise on provision of welfare facilities, such as housing facilities, foodstuffs, social
and recreational facilities, sanitation, advice on individual personnel problems and
education of children
4. To bring to the notice of the factory management the grievances of workers, individual as
well as collective with a view of securing their expeditious redress and to act as a liaison
officer management and labour,
5. To establish contacts and hold consultations with a view to maintaining harmonious
relations between the factory management and workers
6. To study and understand the point of view of labour in order to help the factory
management to shape and formulate labour policies and to interpret these policies of the
workers in a language they can understand;
7. To advise on fulfillment by the management and the concerned departments of the
factory of obligations, statutory otherwise, concerning regulation of working hours,
maternity benefit, medical care, compensation for injuries and sickness and other welfare
and social benefit measures;
8. To watch industrial relations with a view of using his influence in the event of a dispute
between the factory management and workers and to help to bring about a settlement by
persuasive effort
9. To promote relations between the concerned departments of the factory and workers
which will bring about productive efficiency as well as amelioration in the working
conditions and to help workers to adjust and adapt themselves to these working
environments
10. To encourage the formation of Works and Joint Production Committees, Cooperative
Societies and Welfare Committee, and to supervise their work;
 11. To advise the factory management on questions relating to training of new starters,
apprentices, workers on transfer and promotion, instructors and supervisors, supervision
and control of notice board and information bulletins to further education of workers and
to encourage their attendance at technical institutes
12. To suggest measures which will serve to raise the standard of living of workers and in
general promote their well- being
13. Welfare Officers not to deal with disciplinary cases or appear on behalf of the
management against workers: No Welfare Officer shall deal with any disciplinary cases
against workers or appear before a conciliation officer in a court or tribunal on behalf of
the factory management against a worker or workers.

Employee Health

What causes accidents?

There are three basic causes of workplace accidents: chance occurrences, unsafe conditions, and
employees’ unsafe acts. Chance occurrences (such as walking past a tree just when a branch
falls) are more or less beyond management’s control.

What Causes Unsafe Conditions?

Unsafe conditions are a main cause of accidents. They include
● Improperly guarded equipment
● Defective equipment
● Hazardous procedures around machines or equipment
● Unsafe storage—congestion, overloading
● Improper illumination—glare, insufficient light
● Improper ventilation

The solution here is to identify and eliminate the unsafe conditions. The main aim of the
standards is to address such mechanical and physical accident-causing conditions. The
employer’s safety department (if any) and its human resource managers and top managers should
take responsibility for identifying unsafe conditions. While accidents can happen anywhere,
there are some high-danger zones. About one-third of industrial accidents occur around forklift
trucks, wheelbarrows, and other handling and lifting areas.

Safety Climate Work

Schedules and fatigue also affect accident rates. Accident rates usually don’t increase too
noticeably during the first 5 or 6 hours of the workday. But after that, the accident rate increases
faster. This is due partly to fatigue and partly to the fact that accidents occur more often during
night shifts. With reduced headcount and more people with second jobs, employee fatigue is a
growing problem today. Many employers are therefore taking steps to reduce employee fatigue,
such as banning mandatory overtime. The workplace “climate” or psychology is very important.

What Causes Unsafe Acts?

Unsafe employee acts (such as running) will undo your efforts to banish unsafe conditions, but
there are no easy answers to what causes people to act that way. The person who is accident
prone on one job may not be so on another. For example, personality traits that correlate with
filing vehicular insurance claims include entitlement (“think there’s no reason they should not
speed”), impatience (“were ‘always in a hurry’”), aggressiveness (“the first to move when the
light turns green”), and distractibility (“frequently distracted by cell phones, eating, and so on”).

How to Prevent accidents

In practice, accident prevention boils down to reducing unsafe conditions and reducing unsafe
acts. In large firms, the chief safety officer (often called the “environmental health and safety
officer”) is responsible. In smaller firms, managers, including those from human resources, plant
management, and first-line managers, share these responsibilities.

Reducing Unsafe Conditions

Safety engineers should design jobs to remove or reduce physical hazards. Employers also use
computerized tools to design safer equipment. Sometimes the solution for an unsafe condition is
obvious, and sometimes it’s not. For example, slippery floors often cause slips and falls.61
Obvious remedies include floor mats and better lighting. Perhaps less obviously, personal safety
gear, like slip resistant footwear with grooved soles, can also reduce slips and falls.

Reducing Unsafe Acts - First identify and try to eliminate potential risks, such as unguarded
equipment. Next, reduce potential distractions, such as noise, heat, and stress. Then, carefully
screen and train employees, as we explain next.

1. Reducing Unsafe Acts Through Screening - Proper employee screening and placement
reduce unsafe acts. Here the employer’s aim is to identify the traits that might predict
accidents on the job in question, and then screen candidates for this trait.

2. Reducing Unsafe Acts Through Training- Safety training reduces unsafe acts,
especially for new employees. You should instruct employees in safe practices and
procedures, warn them of potential hazards, and work on developing a safety-conscious
attitude.

3. Reducing Unsafe Acts Through Posters, Incentives,and Positive Reinforcement-

Employers also use various tools to motivate worker safety. Safety posters are one, but
are no substitute for comprehensive safety programs. Employers should combine them
 with other techniques (like screening and training) to reduce unsafe conditions and acts,
and change the posters often. Posters should be easily visible, legible, and well-lit

4. Reducing Unsafe Acts by Fostering a Culture of Safety- According to one safety

expert, a workplace with a safety-oriented culture exhibits:
a. Teamwork, in the form of management and employees both involved in safety;
b. Highly visible and interactive communication and collaboration on safety matters;
c. A shared vision of safety excellence (specifically, an overriding attitude that all
accidents and injuries are preventable);
d. Assignment of critical safety functions to specific individuals or teams;
e. A continuous effort toward identifying and correcting workplace safety problems
and hazards;
f. Encouragement of incident reporting.

5. Reducing Unsafe Acts by Creating a Supportive Environment

6. Reducing Unsafe Acts by Establishing a Safety Policy The company’s written safety
policy should emphasize that accident prevention is of the utmost importance at your
firm, and that the firm will do everything practical to eliminate or reduce accidents and
injuries

7. Reducing Unsafe Acts by Setting Specific Loss Control Goals Set specific safety
goals to achieve. For example, set safety goals in terms of frequency of lost-time injuries
per number of full-time employees.

8. Reducing Unsafe Acts Through Behavior-Based Safety and Safety Awareness

Programs Behavior-based safety means identifying the worker behaviors that contribute
to accidents and then training workers to avoid these behaviors.

9. Reducing Unsafe Acts Through Employee Participation Employees are an excellent

source of insights about safety problems and solutions.

Workplace Health Hazards: Problems and Remedies

1. Chemicals and Industrial Hygiene

a. Managing such hazards comes under the area of industrial hygiene and involves
recognition, evaluation, and control.
b. First, the facility’s health and safety officers (possibly working with teams of supervisors
and employees) must recognize possible exposure hazards.
c. This typically involves conducting plant/facility walk-around surveys, employee
interviews, records reviews, and reviews of government and nongovernmental standards.
d. Once the manager identifies a possible hazard, evaluation involves determining how
severe the hazard is.
e. This requires measuring the exposure, comparing the measure to some benchmark (such
as 0.10 fibers per cubic centimeter for asbestos), and determining if the risk is within
standard.130 Hazard control involves eliminating or reducing the hazard.
f. Note that personal protective gear is generally the last option for dealing with such
problems. The employer must first install engineering controls (such as process
enclosures or ventilation) and administrative controls (including training and improved
housekeeping)

2. Asbestos Exposure at Work and Air Quality

a. Asbestos is a major source of occupational respiratory disease. Efforts are still under way
to rid old buildings of the substance.
b. Employers must monitor the air whenever they expect the level of asbestos to rise to
one-half the allowable limit (0.10 fibers per cubic centimeter).
c. Engineering controls—walls, special filters, and so forth—are required to maintain an
asbestos level that complies with the standards. Only then can employers use respirators
if additional efforts are required to achieve compliance

3. Alcoholism and Substance Abuse - Dealing with Substance Abuse - Ideally, a drug-free
workplace program includes five components:
a. A drug-free workplace policy
b. Supervisor training
c. Employee education
d. Employee assistance
e. Drug testing

4. Stress, Burnout, and Depression-

a. Problems such as alcoholism sometimes reflect stress and depression. In turn, a
variety of workplace factors can lead to stress. These include work schedule, pace
of work, job security, route to and from work, workplace noise, poor supervision,
and the number and nature of customers or clients.
b. Personal factors also influence stress.
c. For example, Type A personalities— workaholics who feel driven to be on time
and meet deadlines—normally place themselves under greater stress. Add to job
stress the stress caused by non job problems like divorce, and many workers are
problems waiting to happen.
 d. Human consequences of job stress include anxiety, depression, anger,
cardiovascular disease, headaches, accidents, and even early onset Alzheimer’s
disease.
e. Reducing Job Stress-
● Build rewarding, pleasant, cooperative relationships with colleagues and
employees.
● Don’t bite off more than you can chew.
● Build an especially effective and supportive relationship with your boss
● Negotiate with your boss for realistic deadlines on important projects
● Learn as much as you can about upcoming events and get as much lead
time as you can to prepare for them
● Find time every day for detachment and relaxation
● Take a walk around the office to keep your body refreshed and alert
● Find ways to reduce unnecessary noise.
● Reduce the amount of trivia in your job; delegate routine work when
possible
● Limit interruptions
● Don’t put off dealing with distasteful problems
● Make a constructive “worry list” that includes solutions for each problem.
● Get more and better quality sleep
f. Burnout - Experts define burnout as the total depletion of physical and mental
resources caused by excessive striving to reach an unrealistic work-related goal.
Burnout manifests itself in symptoms such as irritability, discouragement,
exhaustion, cynicism, entrapment, and resentment.
g. Prevention of Burnout
● Break your patterns.
● Get away from it all periodically.
● Reassess your goals in terms of their intrinsic worth.
● Think about your work.
● Stay active
h. Employee Depression- Employee depression is a serious problem at work.
Employers should work harder to ensure that depressed employees utilize
available support services. Employers therefore need to train supervisors to
identify depression’s warning signs and to counsel those who may need such
services to use the firm’s employee assistance program

5. Infectious Diseases -With many employees traveling to and from international

destinations, monitoring and controlling infectious diseases is an important safety issue
 6. Workplace Smoking -Smoking is a serious health and cost problem. The manager can
probably deny a job to a smoker as long as smoking isn’t used as a surrogate for other
discrimination

Occupational Security and Risk Management

Workplace safety relates to risks of injury or illness to employees. Workplace security relates to
protecting employees from internal and external security risks such as criminal acts by outside
perpetrators and terrorism

Enterprise Risk Management is “the process of assessing exposures to loss within an operation
and determining how best to eliminate, manage or otherwise reduce the risk of an adverse event
from having a negative impact on the business

Preventing and Dealing with Violence at Work Violence against employees is one internal
preventable enterprise risk, and a huge problem.
1. Improve employee Screening : Personal and situational factors correlate with workplace
aggression. Men and individuals scoring higher on “trait anger” (the predisposition to
respond to situations with hostility) are more likely to exhibit aggression
2. Use workplace violence techniques- You can also train supervisors to notice the clues
that typify potentially violent current employees.
- An act of violence on or off the job
- Erratic behavior evidencing a loss of perception or awareness of actions
- Overly confrontational or antisocial behavior
- Sexually aggressive behavior
- Isolationist or loner tendencies
- Insubordinate behavior with a threat of violence
- Tendency to overreact to criticism
- Exaggerated interest in war, guns, violence, mass murders, catastrophes
- Commission of a serious breach of security
- Possession of weapons, guns, knives, or like items in the workplace
- Violation of privacy rights of others, such as searching desks or stalking
- Chronic complaining and the raising of frequent, unreasonable grievances

Securing the Facility

In simplest terms, instituting a basic facility security program requires four steps: analyzing the
current level of risk, and then installing mechanical, natural, and organizational security systems
1. Reception area access, including need for a “panic button”;
2. Interior security, including secure restrooms, and better identification of exits;
3. Authorities’ involvement, in particular emergency procedures developed with local law
enforcement;
 4. Mail handling, including screening and opening mail;
5. Evacuation, including evacuation procedures and training; and
6. Backup systems, such as storing data off site.

Company Security and Employee -Privacy Security programs often entail monitoring
employee communications and workplace activities. Ideally, employers should get employees’
consent for monitoring. However, the employer may also monitor if it’s clear from existing
policies and notices that employees should have known monitoring might take place

Terrorism
The employer can take several steps to protect its employees and physical assets from
the risk of terrorist attack. These steps, now familiar at many workplaces, include:
1. Screen the identities of everyone entering the premises.217
2. Check mail carefully.
3. Identify ahead of time a lean interim “crisis organization” that can run the company after
a terrorist threat.
4. Identify in advance under what conditions you will close the company down, as well as
the shutdown process.
5. Institute a process to put a crisis management team together.
6. Prepare evacuation plans and make sure exits are well marked and unblocked.
7. Designate an employee who will communicate with families and off-site Employees.

What are HR Audits?

Human resource managers often collect data on matters like employee turnover and safety via
human resource audits.
One practitioner calls an HR audit “an analysis by which an organization measures where it
currently stands and determines what it has to accomplish to improve its HR function.”
The HR audit generally involves using a checklist to review the company’s human resource
functions (recruiting, testing, training, and so on), as well as ensuring that the firm is adhering to
regulations, laws, and company policies.
The HR auditor may first review payroll data, focusing on what and when each employee was
paid.
HR audits vary in scope. Typical areas audited include:
1. Roles and headcount (including job descriptions, and employees categorized by
exempt/nonexempt and full- or part-time)
2. Compliance with federal, state, and local employment-related legislation
3. Recruitment and selection (including use of selection tools, background checks, and so
on)
4. Compensation (policies, incentives, survey procedures, and so on)
5. Employee relations (union agreements, performance management, disciplinary
procedures, employee recognition)
6. Mandated benefits (Social Security, unemployment insurance, workers’ compensation,
and so on)
7. Group benefits (insurance, time off, flexible benefits, and so on)
8. Payroll (such as legal compliance)
9. Documentation and record keeping. For example, do our files include résumés and
applications, offer letters, job descriptions, performance evaluations, benefit enrollment
forms, payroll change notices, and documentation related to personnel actions such as
employee handbook acknowledgments?
10. Training and development (new employee orientation, development, technical and safety,
career planning, and so on)
11. Employee communications (employee handbook, newsletter, recognition programs)
12. Termination and transition policies and practices