UNIT -4

Human Resource Management:

Introduction:
Human resource management (HRM) is a dynamic approach that involves hiring individuals, growing
them as resources, and then using, sustaining, and valuing their services in accordance with
organisational and job demands. Human resource management comprises of three words-
1. Human- Skilled people are considered as key resource in this approach.
2. Resource- A thing that is used to accomplish a goal of the organization's programme for
personnel or raw materials. They are scarce and in restricted supply.
3. Management- Management is the planning, organising, staffing, directing, and supervising of
all corporate activities.
1. Meaning:
HRM is the process of using human resources effectively and efficiently in order to accomplish the
desired outcomes.
Coordinating, managing, and allocating human capital, or employees, in ways that advance an
organization's objectives is known as human resource management, or HRM. HRM is concerned with
managing all facets of staffing, from hiring to remuneration and development, and putting money into
employees' welfare.
- Planning, organising, directing, and controlling are management functions that are covered
under human resource management.
- It covers the acquisition of human resources, their training and development, and their
maintenance.
- It aids in achieving personal, professional, and societal goals.
- The study of human resource management spans many academic fields.
- It encompasses the study of sociology, psychology, economics, communication, and
management.
- It also covers encouraging teamwork and team spirit.
- It is a never-ending process.

2. DEFINITIONS:
1. According to French Wendell, “Human resource management as the recruitment, selection,
development, utilisation, compensation and motivation of human resources by the
organisation”.
2. Edwin B. Flippo defines “management is the planning, organising, directing and
controlling of the procurement, development, resources to the end that individual and
societal objectives are accomplished”.
 3. According to Dale Yoder, “HRM is the provision of leadership and direction of people in
their working or employment relationship.”
4. M. J. Jucious: “The field of HRM involves planning, organization, directing and
controlling functions of procuring, developing, maintaining and utilizing a labor force.”
5. Mathis and Jackson: “HRM is the effective use of Human resources and organization
through the management of people related activities.”

3. Objectives of HRM

Achieve
Organizational Team Integration Work Culture
Goal

Training and Employee

HRM
Development OBJECTIVES Motivation

Workforce Data and

Empowerment Retention Compliance

Fig 1: Objectives of HRM

Werther and Davis have classified the objectives of HRM into following four categories-
1. Societal Objectives
2. Organizational Objectives
3. Functional Objectives
4. Personal Objectives
 Societal Objectives
Legal compliance
Benefits
Union- Mangement
relation

Personel Objectives
Training and development Organizational Objectives
Appraisal 1.Human Resource Planning
Placement Objectives Employee relation
Compensation Selection
Training and development

Functional
Objectives
Appraisal
Placement
Assessment

Fig 2: Objectives of HRM

Other Objectives:
1. To Achievement Organisational Goal
2. To maintain healthy relationship and working environment for employees.
3. To adopt proper organisational structure.
4. To integrated individuals goals with group goals of an organisation.
5. To create better opportunities for growth and advancement of employees.
6. To motivate and keep high morale in employees.
7. To fulfill individual and group needs.
8. To provide proper safety measures
4. Scope of HRM
HRM has a very broad and deep scope. It includes all actions, from planning for human
resources to an employee's retirement from an organisation. Hence, the procurement, training,
maintenance/retention, and administration of human resources within an organisation make up
the HRM's core competencies.

Acquisition
Control

Human Resource Planning(HRP)

Human Resource Information Procurement
System(HRIS)
Selection
Human Resource Audit Placement
Human Resource Accounting

Scope of HRM

Maintenance
Development
Motivation Health
& Safety
Remuneration Training,
Industrial Relations Social Organizational Development,
Security Performance Internal Mobility
appraisal
Career Development

Fig 3: Scope of HRM

According to the National Institute of Personnel Management in Calcutta, HRM

encompasses the following areas:
 1. Personnel Aspect: This focuses to the planning of human resources, including hiring,
selecting, placing, transferring, promoting, training, and developing employees. It also addresses
compensation, incentives, productivity, and layoffs and retrenchments.
2. Welfare Aspect:
It covers things like housing, transportation, medical aid, education, health and safety, recreational facilities,
and working conditions and amenities including canteens, creches, rest rooms, and lunchrooms.
3. Industrial Relations Aspect:
This includes things like joint consultation, collective bargaining, grievance and disciplinary procedures,
conflict resolution, and relations between the labour and management.
5. Evolution of HRM:
Through successive periods of the Industrial Revolution, trade unions, scientific management, behavioural
science, and human relations, the concept of HRM has developed. As a result, the phrase Personnel
Management has increasingly given way to the concept of HRM.
The evolution of human resource management has developed through the following 5 Stages.

1. The Commodity Concept-HRM began with the guild system before the Industrial Revolution.
The guild was a close-knit group that was responsible for hiring, educating, rewarding, and
maintaining employees. The tight bonds between owners and employees are shattered when
owners and management are separated. As time went on, labour was viewed as a good to be
bought and sold.
2. The Factor of the Production Concept-Employees were viewed as a factor of production under
this theory, much like land, resources, and machinery. To improve production,
Taylor's scientific management placed a strong emphasis on careful employee selection and training.
The workers were viewed mostly as simple cogs in the machine or as an afterthought in the
production process. However, this idea was better insofar as employers benefited from improved
working conditions and greater wages.
3. The Paternalistic Concept-To better their lot, workers banded together based on their shared
interests and established trade unions. Collective bargaining gained momentum as democracy
grew in power. The state acknowledged that employees have a right to protection at work. It
represents the primary advancement in human resource management. Employers offer a variety
of programmes to employees as a result of these influences. Employers treat their employees
with a fatherly and protective approach.
4. The Humanitarian Concept-The humanistic system is based on the idea that employers are
entitled to some inherent rights as fellow humans. These rights must be upheld by the employer.
Industrial psychologists emphasised that an employer had interests beyond just financial
compensation. Instead, psychological and social satisfaction were equally significant.
5. The Human Resource Concept-In order to meet both the organization's and the employees'
goals at once, efforts were undertaken to integrate the workforce with the organisation. The
emphasis has switched to management techniques such two-way communication, management
by objectives, the function of unofficial groups, quality circles, etc. It is vital to the development
of human resource management.
6. The Emerging Concept-Employees are now viewed as partners in the business. They are
eventually awarded stock memberships in the company.
 6. Difference Between personnel management and HRM:

Personnel management is administrative and primarily concerned with employees and how they can adapt
to the organisation, which is the fundamental distinction between it and HRM. In contrast, HRM is a cutting-
edge strategy that combines management with strategic planning and is focused on the effectiveness of
human resources, including staff members and HR activities within the company.
In an organisation, personnel management focuses on finding and retaining the best workers.But a lot goes
on in the background.
According Edwin B Flippo-

“Personnel Management is the planning, organising, directing, and controlling of the procurement,
development, compensation, integration and maintenance and separation of personnel to the end that
individual, organisational and societal objectives are accomplished.”
Optimizing the organization's human resources is the responsibility of HR management. In order to achieve
organisational goals, it is concerned with managing both HR operations and the workforce.

HRM is defined as,

“HRM is the managerial utilisation of the efforts, knowledge, capabilities and committed behaviours which
people contribute to an authoritatively coordinated human enterprise as part of an employment exchange (or
more temporary contractual arrangement) to carry out work”

Parameters Personnel Management HRM

Administrative tasks and Strategic tasks concerned with

Function maintain relationships with optimising human resources and
employees employees

Employee productivity
results in job satisfaction; Employees are the main
Approach assets; modern
traditional

Meeting organisational Utilisation of employee’s

Objective policies competencies

Making employees adopt Developing the competency of

Orientation company rules each employee
 Pay based on Job evaluation Performance evaluation

7. Role of Personnel Manager and HR Manager:

One of a company's most significant and real assets is its human capital. The company's first priority should
be to keep this asset. As the liaison between management and employees in this situation, a people manager
is crucial.
A team of experts can be developed with the help of personnel managers. They assist with identifying new
talent, educating new hires, and providing them with any necessary career support

As they create interactions among employees and resolve problems, effective personnel managers can
work to boost retention. As they hire highly skilled people, they can also aid in boosting production.
His role can be summed up as follows:

 When needed, he transforms into a counsellor. He offers advice to the workers regarding the
problems and complaints they are having that are interfering with their productivity.
 He performs the role of an agent. Being in close contact with the employees makes him an
effective spokesperson in committees. Even during training sessions, he serves as the company's
leader.
 He serves as a line manager's advisor and helps them handle and resolve a variety of staff member
personnel issues.
 The personnel manager effectively develops the policies for the staff. He is therefore helping the
senior management.
 He serves as a go-between, connecting management and workers.
 He makes sure that the organization's personnel policies are consistently applied.

8. Functions of HRM

The three categories below can be used to group human resource management tasks.

1. Managerial Functions
2. Operational Functions
3. Advisory Functions

8.1 Managerial Function-

The following are the managerial functions of human resource management:
1. Human Resource Planning - In this HRM task, the number and kind of workers required to
achieve organisational objectives are identified. An essential component of this role is research;
data is gathered and evaluated to determine the organization's present and future needs for human
resources as well as to forecast how changing employee attitudes, behaviours, and values will
affect the business.
2. Organizing - In an organisation, tasks are distributed among the participants, relationships are
established, and activities are coordinated to achieve a shared goal. The employees build
relationships with one another so that they can work together to achieve the organization's goal.
3. Directing - Through effective direction and motivation, employees at various levels can be made
to contribute to the organisation to the fullest extent possible. Utilizing the full capacity of the
workforce is attainable through command and incentive.
 4. Controlling - Following planning, organising, and directing, the actual performance of the
workforce is examined, confirmed, and contrasted with the objectives. Control measures must
be implemented if it is discovered that the actual performance differed from the plan.

8.2 Operative Functions-

The following are the operational functions of human resource management:

 Recruitment and Selection - The function of recruiting candidates brings a pool of potential
employees to the organisation so that management can choose the best candidate from this pool.
 Job Analysis and Design - Job analysis is the process of describing a job's nature and outlining
the human requirements, such as education, training, and experience, that are necessary for that
job to be performed. Job design seeks to outline and organise tasks, responsibilities, and duties
into a single unit of work for the accomplishment of specific goals.
 Performance Appraisal - To make sure that employees' performance is at an acceptable level,
human resource specialists are required to carry out this task.
 Training and Development - This element of human resource management aids in giving
workers the knowledge and skills they need to do their jobs well. Both new hires and current
employees can participate in training and development programmes. Through training and
development, employees are prepared for higher-level responsibilities.
 Administration of wages and salaries - Human resource management decides how much should
be paid for various jobs. Employee compensation is determined by human resource management
and includes things like wage administration, salary administration, incentives, bonuses, and
fringe benefits.
 Employee Welfare - Services, benefits, and facilities offered to employees for their well- being
fall under this category.
 Maintenance - The organisation views its human resources as an asset. Employee churn is not
viewed favourably by organisations. The goal of human resource management is to retain the
organization's top performers.
 Labor Relations - This task involves interacting with workers who are represented by a union
in human resource management. To have a greater say in matters affecting pay, benefits, working
conditions, etc., employees’ band together to create a union.

9. Role of HR Manager
Planning, creating, and overseeing policies and programmes intended to make the most use of an
organization's human resources are all responsibilities of the HR manager. It is that area of management that
is focused on how people interact at work and within organisations. Its goals are the following: (a) efficient
use of human resources; (b) positive working relationships among all organisation members; and (c) maximal
individual development. The primary roles of human resources are administrative and professional. The HR
team didn't view itself as contributing to the company's overarching strategy; instead, they were primarily
concerned with managing benefits and other payroll and operational tasks.
HR specialists play a broad range of roles. They must have a full understanding of the organisation, including
all of its nuances and complexities.
Pat Mc Lagan has identified nine functions that HR Managers perform.

 To inform strategic decision-makers about the concerns and trends affecting an organization's
internal and external stakeholders and to provide long-term plans to sustain organisational
excellence and endurance.
 To plan and prepare HR systems and initiatives for implementation in order to maximise their
 positive effects on organisational development and performance.
 To support the creation and application of plans for transforming one's own company through
the pursuit of values and visions.
 To forge positive relationships with consumers by offering them the greatest services; to make
the best use of available resources; and to foster dedication among all those who assist the
organisation in meeting the needs of customers, whether they are directly or indirectly associated
with it.In order to create and build structured learning programmes and materials that will assist
people and groups learn faster, it is necessary to first determine the learning needs.
 To encourage people and groups to adapt to new circumstances and challenge preconceived
notions so that those in positions of authority switch from authoritarian to participative leadership
styles.
 To assist staff members in evaluating their competences, values, and goals so they may choose,
organise, and carry out development programmes.
 He also helps each employee offer value to the workplace, concentrate on interventions, and
develop interpersonal skills to support people in changing and maintaining their behaviour.
 To help the company and its employees advance, he evaluates HRD processes and programmes,
their effects, and the results they produce.
Dave Ulrich identifies four key functions that HR plays.

1. Change Agent Role- making change happen, and in particular, helping it happen quickly
2. Strategic Partner Role- transforming strategy into results by creating organisations that create
value.
3. Employees' Champions Role-management of a company's intellectual capital or talent.
4. The administrative role is attempting to make things better, faster, and less expensive.

10. Qualities of HR Manager:

Sympathetic Attitude, Quick Decisions, Integrity, Patience, Formal Authority, Leadership, Social
Responsibility, and Good Communication Skills are characteristics of an HR manager. HR Manager's
responsibility is to interview and hire people based on their abilities and talents.

Good HR managers are motivated, well-organized people who want to support enterprises in
achieving their objectives and in maximising the potential of their workforce. Let's discover more
about the specific attributes of an HR manager.

Henri Fayol states that human relations expertise is significantly more important for an HR manager
to have than other managerial abilities. He categorised the skills required of an HR manager into the
following groups:
The categories are:

1. Physical-health

2. Mental-ability to understand and learn Integrity

3. Industry awareness

4. Technical awareness

5. Relevant Experience
Qualities of HR Manager-

 Leadership-
To lead the team members towards attaining the organization's goals, a leader must possess strong
leadership qualities. Additionally, he needs to maintain employee motivation and exhort them to use
their talents for the benefit of the company as a whole.
 Communication-
One of the key traits of a great HR manager is effective communication. Both internal and external
stakeholders, including governmental organisations and other firms, must be able to communicate
with HR managers. They must eloquently state the organization's policies and processes and
thoroughly explain them to the staff. HR managers must also have the ability to pay close attention
to employee problems and feedback and act on it.

To establish credibility and trust with employees, HR managers must communicate effectively.
Additionally, effective communication promotes teamwork and a healthy work atmosphere.
Furthermore, in order to resolve disputes and sustain positive working relationships, HR managers
must conduct challenging conversations with professionalism and composure.

 Decision Making-
Making decisions is a big part of HR because it supports so many important organisational activities.
When the organisation is faced with the challenge of downsizing, they must make difficult decisions.
Additionally, you must determine whether a candidate is a suitable fit for the position during the
hiring process. The correct individual or talent must be identified, and this takes strategy, experience,
and intuition.

 Training and development-

Planning training and development sessions for staff members is frequently necessary to assist them
develop their skill sets. By doing this, HR professionals contribute significantly to fostering
employees' professional development. For instance, you might wish to schedule workshops on time
management and leadership to aid staff in increasing their sense of cooperation and output.
 Empathic-
HR specialists deal with a variety of employee issues, including an excessive workload, complaints
about pay, and disagreements amongst coworkers. An attentive listener is sometimes all that is
required when a worker simply wants to voice their worries. Before passing any verdict, HR
specialists must comprehend the circumstance and viewpoint of an employee.
 Caring.
Outstanding HR executives are trustworthy and innately compassionate. They consistently
prioritise their employees' needs and interests. Their sympathetic temperament and emotional
intelligence inform wise but kind policy decisions and foster wholesome workplace relationships.

 Forward-thinking-
They establish plans for the future of their workplaces, recognising potential risks and advantages
for luring and keeping their best employees as well as strategies for improving the culture of their
company. To safeguard their companies and stay on top of the game, they make sure they are ready
for difficulties.
Passionate-Great HR leaders are passionate about finding, empowering, engaging, and developing
talent. They also love and love where they work and their industry.Whether managing the function,
being a generalist, or specialising in a particular aspect of HR, they genuinely enjoy what they do.
  Innovative.
Remarkable HR leaders establish innovative strategies for luring, managing, and growing talent
while realising that in order to compete, they must set themselves apart from other employers and
apply novel tactics. They are advocates for, creators of, and designers of innovative global talent
initiatives.

 Strategic.
They don't function in isolation. Instead, exceptional HR leaders comprehend their company's
strategy, show interest in its vision, and match their efforts with the objectives of their company.
They are aware of the definition of high performance and how to foster it through talent management.

 Ethical.
Great HR leaders are the moral compass of their firms because they deal with a lot of sensitive
material and sensitive topics, such as employee medical conditions, performance challenges, and
legal matters. They go above and beyond what is expected or needed by
law to accomplish what is right for their community, even if it comes at a larger cost or demands
more of their time.

 Conflict Management-
One of the easiest HR competencies to master is this one. You will frequently need to settle disputes at
work, whether they be between coworkers or between an employee and management. An crucial
function of an HR professional is to defuse conflict and assist the parties involved in coming to a fair
agreement.

 Flexible –
An HR manager does more than only oversee the HR personnel and respond to complaints. HR
executives participate in all business decisions made by the company as members of the global
CXOs. That is why one of the competencies of HR managers is to be flexible and adaptable. They
must continually examine company policies and look for best practises among rival businesses.

 Critical Thinking-
The capacity for critical analysis of facts, observations, and evidence is essential for arriving at a
conclusion. It is one of the HR talents and skills that aid in preventing prejudice, bias, and stereotypes
in the workplace. When you develop your critical thinking skills, you will approach problems
methodically and with the highest level of objectivity and analysis. Employees and management
would feel more at ease bringing complaints and difficulties to you since they know you will
investigate them and propose the best solution.

11. Line versus staff authority- Staff

authority-
An organisational principle known as staff authority gives staff members a certain amount of control
over how line employees are managed and decisions are made.
Staff positions that exercise staff power provide guidance and insight to line positions. Line
workers are not formally subordinate to staff employees. For instance, a marketing manager cannot
be told how to carry out their duties by the company's internal accountant. However, these employees
can assist line supervisors and line workers by providing knowledge and counsel.

Line authority-
Line positions with line authority are common in large businesses. Additionally, they might have staff
 positions with the authority to counsel front-line employees.Line authority refers to the standard
chain of command for a company's main line of products. Line authority refers to the practise of top
management issuing orders to product managers or product managers delivering orders to line
employees. Line authority requires a clear line of command, the concentration of power, and tasks
that are directly related to the company's goods or services that are offered to customers.

Line positions with line authority are common in large businesses. Additionally, they might have staff
positions with the authority to counsel front-line employees.

Line authority refers to the standard chain of command for a company's main line of products. Line
authority refers to the practise of top management issuing orders to product managers or product
managers delivering orders to line employees. Line authority entails a clear line of command, the
concentration of power, and tasks that are directly tied to the company's customer-facing goods or
services.
Staff positions that exercise staff power provide guidance and insight to line positions. Line workers
are not formally subordinate to staff employees. For instance, a marketing manager cannot be told
how to carry out their duties by the company's internal accountant. However, these employees can
assist line supervisors and line workers by providing knowledge and counsel.

12. Changing environment of HRM

Both the business environment and the HR environment are evolving. Workforce diversity, economic
and technological development, globalisation, organisational reorganisation, changes in the nature of
jobs and work, and other factors are all part of the evolving HRM environment.

1. Diversity in the Workforce:

Diversity has been defined as "any characteristic that individuals are likely to use to say, that person
is different from me," which covers things like ethnicity, sex, age, values, and cultural norms."
As more women enter the workforce, more flexible work schedules, child care facilities,
maternity and even paternity leaves, and relocation to the site of the husband's posting have become
necessary.
A further issue for HR managers is forging unity among a varied workforce. This is due to the fact
that, in the words of some experts, diversity is characterised by two underlying and incompatible
realities that coexist with it today. One is that businesses assert they desire to maximise both
workplace diversity and the competencies of such a diversified workforce.

2. Globalisation-
Globalization makes doing business internationally more competitive. Businesses that previously
solely faced competition from domestic companies increasingly face competition from
foreign businesses. Therefore, competition is now a two-way street in the world's global market.

Multinational corporations were created as a result of globalisation (MNCs). The MNCs are
distinguished by their varied business techniques, heightened competitiveness, and diversity in
cultural perspectives.
Given these circumstances, HRM will face significant hurdles in the next years, ranging from
utilising the global labour force to developing selection, training, and remuneration policies for
expatriate personnel. This has highlighted the necessity of researching and comprehending
transnational or multinational organisations' human resources management separately.

3. Technological and Economic Change:

The hallmark of modern organisations is now technology. As a result, modem companies are now
the tech-driven companies. So to speak, machinery takes the role of men. For instance,
manufacturing technology has evolved to include automation and robotization. The employment and
 occupational patterns have changed over time as a result of numerous economic and technical
advances. A noticeable transition from agriculture to industry to services is occurring in India as well.
Numerous changes have been brought about across the organisation as a result of the internet and
information technology's fast expansion. One of the biggest changes brought about by information
technology is that it has sped up what experts refer to as the "fall of hierarchy," in which managers
no longer rely on the old "stick-to-the-chain-of-command method" to organising.

4. Organisational Restructuring-
To increase the organization's competitiveness, organisational restructuring is used. From this
perspective, business mergers and acquisitions are frequent types of organisational restructuring to
maintain organisational competitiveness. Mega-mergers in the banking, telecommunications, and oil
industries have received a lot of attention in our nation. Another type of organisational restructuring
is downsizing.
Many organisations have "rightsized" themselves as a result of organisational changes by
doing things like removing levels of management, closing facilities, merging with other
organisations, or reassigning employees. Organizations have been flattened by removing many
layers of management in an effort to increase productivity, quality, and service while lowering costs.
Whatever the manner of restructuring, it affects individuals and changes jobs. Dealing with the
human effects of change is one of the issues HRM encounters with organisational transformation.
For instance, the human cost of downsizing has been hotly contested and addressed in the media. As
a result, HRM must concentrate on the altered circumstance specifically, which is not an easy task.
Consequently, HR activity management are becoming crucial.

5. Work's Changing Nature:

The nature of labour has altered along with technological and globalisation changes. For instance,
advancements in technology like the development of fax machines, information technology, and
personal computers have made it possible for businesses to move operations to regions with cheaper
wages. Additionally, there is a tendency for organisations to use temporary or part-time labour more
frequently.

RECRUITMENT PROCESS
Recruitment is the process of finding and attempting to attract job candidates who are capable of
effectively filling job vacancies. The recruitment process consists of the following steps
a) Identification of vacancy c) Selection of sources
b) Preparation of job description and job d) Advertising the vacancy
specification e) Managing the response

a) Identification of vacancy:The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These contain:
Posts to be filled
Number of persons
Duties to be performed
Qualifications required

b) Preparation of job description and job specification:

A job description is a list of the general tasks, or functions, and responsibilities of a position. It may often
include to whom the position reports, specifications such as the qualifications or skills needed by the person in
the job, or a salary range. A job specification describes theknowledge, skills, education, experience, and abilities
you believe are essential to performing a particular job.

c) Selection of sources:Every organization has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources within the organization itself
(like transfer of employees from one department to other, promotions) to fill a position are known as the internal
sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are
known as the external sources of the recruitment.

d) Advertising the vacancy:After choosing the appropriate sources, the vacancy is communicated to the
candidates by means of a suitable media such as television, radio, newspaper, internet, direct mail etc.

e) Managing the response:After receiving an adequate number of responses from job seekers, the sieving
process of the resumes begins. This is a very essential step of the recruitment selection process, because selecting
the correct resumes that match the job profile, is very important. Naturally, it has to be done rather competently
by a person who understands all the responsibilities associated with the designation in its entirety. Candidates
with the given skill set are then chosen and further called for interview. Also, the applications of candidates that
do not match the present nature of the position but may be considered for future requirements are filed
separately and preserved.The recruitment process is immediately followed by the selection process.

Sources of recruitment

Internal sources of recruitment involve motivating the employees of the organization to apply for the
openings within the organization
1. Transfers: The employees of the organization are transferred to the similar jobs of other departments.
It may not involve a change in salary, responsibility, and position of the job. Transfers help in
 reducing the boredom and monotony of the employees or it may be used to fill the vacancies with
suitable internal candidates.
2. Promotions: Promotions involve vacancies of the organization are filled by promoting the skilled
employees to the suitable jobs and it can motivate the employees by giving higher position, increased
salary, status, and responsibility. Promotions can help in reducing employee turnover by creating the
hope of getting higher positions.
3. Demotions: Depending on the performance of the employees of the organizations, sometimes
managers have to take decisions regarding lowering the positions of few employees of the
organization. These employees can act as a source of recruitment to the lower positions.
4. Employees of the organization: Employees of the organization communicate or inform about the
vacant positions of the organization to their friends and relatives. In many organizations, they allowed
referring potential candidates for the suitable vacancies.
5. Retired employees: If the organizations do not find the right persons to fulfil the key managerial
positions then they call back the retired employees for achieving the objectives.

External sources of recruitment involve motivating the skilled and more efficient candidates external to the
organization to apply for the vacant positions in the organization.
1. Advertisements: To find the skilled and more efficient manpower giving advertisement for the vacant
job position is the better way. Advertisements help in attracting the right candidates and in maximizing
brand image. Advertisements may be given in print media or electronic media, it gives better results
and it is cheaper than approaching third parties.
2. Job portals: With the growing technology and internet usage, job portals are playing a major role in
finding right candidates for right jobs. Job portals can inform up to date job alerts to the candidates and
offer attractive benefits and packages to the employers. The tools and techniques used by the job
portals highly reduce the efforts in finding the skilled candidates.
3. With the increase in business operations and globalization, the need for human
resources is also increasing day by day. To face a severe competition and to reduce the cost during the
long run, many companies are setting up their own websites for finding and attracting candidates with
competitive skills.
4. Social networking sites: Communicating about vacant positions of the organization through social
networking sites help in motivation and attracting the highly skilled and more efficient candidates to
apply for the jobs.
5. Placement agencies: Approaching placement agencies reduces the time and efforts to find the right
candidates from the pool of skilled candidates. They use various tools and techniques to filter the
resumes and they send it to the companies for further processing. The main drawback of this method is
commission basis on hiring the candidates.
6. Job fairs and walk in interviews: Walk in interviews and job fairs are declared and conducted by
companies to find the skilled candidates. Following this method highly reduces efforts in finding more
efficient human resources for the bulk requirement.
7. Campus interviews: This is an easy and economical method helps in finding eligible candidates,
through this method organization can find energetic and more competitive candidates for suitable
vacancies, this method is beneficial for both the candidates and companies.

JOB ANALYSIS
Job Analysis is the process of describing and recording aspects of jobs and specifying the skills and
other requirements necessary to perform the job.
The outputs of job analysis are
a) Job description
b) Job specification

Job Description: A job description (JD) is a written statement of what the job holder does how it is done,
under what conditions it is done and why it is done. It describes what the job is all about, throwing light on
job content, environment and conditions of employment. It is descriptive in nature and defines the purpose
and scope of a job. The main purpose of writing a job description is to differentiate the job from other jobs
and state its outer limits.

Contents
A job description usually covers the following information:
§ Job title: Tells about the job title, code number and the department where it is done.
§ Job summary: A brief write-up about what the job is all about.
§ Job activities: A description of the tasks done, facilities used, extent of supervisory help, etc.
§ Working conditions: The physical environment of job in terms of heat, light, noise and other hazards.
§ Social environment: Size of work group and interpersonal interactions required to do the job.

Job Specification: Job specification summarizes the human characteristics needed for satisfactory job
completion. It tries to describe the key qualifications someone needs to perform the job successfully. It spells out
the important attributes of a person in terms of education, experience, skills, knowledge and abilities (SKAs) to
perform a particular job. The job specification is a logical outgrowth of a job description. For each job description,
it is desirable to have a job specification. This helps the organization to find what kinds of persons are needed to
take up specific jobs.
Contents
A job specification usually covers the following information:
Education Work Orientation Factors
Experience Age
Skill, Knowledge, Abilities

SELECTION PROCESS
Selecting a suitable candidate can be the biggest challenge for any organisation. The success of an
organization largely depends on its staff. Selection of the right candidate builds the foundation of any
organization's success and helps in reducing turnovers.

Though there is no fool proof selection procedure that will ensure low turnover and high profits, the
following steps generally make up the selection process-

a) Initial Screening: This is generally the starting point of any employee selection process. Initial Screening
eliminates unqualified applicants and helps save time. Applications received from various sources are scrutinized
and irrelevant ones are discarded.

b) Preliminary Interview: It is used to eliminate those candidates who do not meet the minimum eligibility
criteria laid down by the organization. The skills, academic and family background, competencies and
interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized
and planned than the final interviews. The candidates are given a brief up about the company and the job profile;
and it is also examined how much the candidate knows about the company. Preliminary interviews are also called
screening interviews.
c) Filling Application Form: An candidate who passes the preliminary interview and is found to be eligible for
the job is asked to fill in a formal application form. Such a form is designed in a way that it records the personal
as well professional details of the candidates such as age, qualifications, reason for leaving previous job,
experience, etc.

d) Personal Interview: Most employers believe that the personal interview is very important. It helps them in
obtaining more information about the prospective employee. It also helps them in interacting with the candidate
and judging his communication abilities, his ease of handling pressure etc. In some Companies, the selection
process comprises only of the Interview.

e) References check: Most application forms include a section that requires prospective candidates to put down
names of a few references. References can be classified into - former employer, former customers, business
references, reputable persons. Such references are contacted to get a feedback on the person in question including
his behaviour, skills, conduct etc.

f) Background Verification: A background check is a review of a person's commercial, criminal and

(occasionally) financial records. Employers often perform background checks on employers or candidates for
employment to confirm information given in a job application, verify a person's identity, or ensure that the
individual does not have a history of criminal activity, etc., that could be an issue upon employment.

g) Final Interview: Final interview is a process in which a potential employee is evaluated by an employer
for prospective employment in their organization. During this process, the employer hopes todetermine whether
or not the applicant is suitable for the job. Different types of tests are conducted to evaluate the capabilities of an
applicant, his behaviour, special qualities etc. Separate tests are conducted for various types of jobs.

h) Physical Examination: If all goes well, then at this stage, a physical examination is conducted to make
sure that the candidate has sound health and does not suffer from any serious ailment.

i) Job Offer: A candidate who clears all the steps is finally considered right for a particular job and is presented
with the job offer. An applicant can be dropped at any given stage if considered unfit for the job.

EMPLOYEE INDUCTION/ORIENTATION
Orientation or induction is the process of introducing new employees to an organization, to their
specific jobs & departments, and in some instances, to their community.

Purposes of Orientation
Orientation isn't a nicety! It is used for the following purposes:
1. To Reduce Start-up-Costs:Proper orientation can help the employee get "up to speed" much more
quickly, thereby reducing the costs associated with learning the job.
2. To Reduce Anxiety:Any employee, when put into a new, strange situation, will experience anxiety that
can impede his or her ability to learn to do the job. Proper orientation helps to reduce anxiety that results from
entering into an unknown situation, and helps provide guidelines for behaviour and conduct, so the employee
doesn't have to experience the stress of guessing.
3. To Reduce Employee Turnover:Employee turnover increases as employees feel they are not valued, or are
put in positions where they can't possibly do their jobs. Orientation shows that the organization values the
employee, and helps provide tools necessary for succeeding in the job.
4. To Save Time for Supervisor & Co-Workers:Simply put, the better the initial orientation, the less likely
supervisors and co-workers will have to spend time teaching the employee.
5. To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction:It is important that
employees learn early on what is expected of them, and what to expect from others, in addition to learning
about the values and attitudes of the organization. While people can learn from experience, they will make
many mistakes that are unnecessary and potentially damaging.

An orientation program principally conveys 3 types of information, namely:

a) General information about the daily work routine to be followed
b) A review of the history, founders, objectives, operations & products or services, as well as
how the contributes to the needs.
c) A detailed presentation of the policies, work rules & employee benefits.

Two Kinds of Orientation

There are two related kinds of orientation. The first we will call Overview Orientation, and deals with the
basic information an employee will need to understand the broader system he or she works in.

Overview Orientation includes helping employees understand:

Management in general Accident prevention measures
Department and the branch Employee and union issues (rights,
Important policies responsibilities)
General procedures (non-job specific) Physical facilities
Information about compensation

Often, Overview Orientation can be conducted by the personnel department with a little help from the branch
manager or immediate supervisor, since much of the content is generic in nature.

The second kind of orientation is called Job-Specific Orientation, and is the process that is used to help
employees understand:
Function of the organization, Policies, procedures, rules and regulations
Responsibilities, Layout of workplace
Expectations, Introduction to co-workers and other
Duties people in the broader organization.

Job specific orientation is best conducted by the immediate supervisor, and/or manager, since much of the content
will be specific to the individual. Often the orientation process will be ongoing, with supervisors and co-workers
supplying coaching.

CARRER DEVELOPMENT
Career development not only improves job performance but also brings about the growth of the personality.
Individuals not only mature regarding their potential capacities but also become better individuals.

Purpose of development
Management development attempts to improve managerial performance by imparting
Knowledge Changing attitudes Increasing skills
The major objective of development is managerial effectiveness through a planned and a deliberate process of
learning. This provides for a planned growth of managers to meet the future organizational needs.

Development Process:
The development process consists of the following steps
1. Setting Development Objectives:It develops a framework from which executive need can be determined.
2. Ascertaining Development Needs:It aims at organizational planning & forecast the present and future
growth.
3. Determining Development Needs: This consists of
Appraisal of present management talent
Management Manpower Inventory
The above two processes will determine the skill deficiencies that are relative to the future needs of the
organization.
4. Conducting Development Programs:It is carried out on the basis of needs of different individuals,
differences in their attitudes and behaviour, also their physical, intellectual and emotional qualities. Thus a
comprehensive and well-conceived program is prepared depending on the organizational needs and the time
& cost involved.
5. Program Evaluation:It is an attempt to assess the value of training in order to achieve organizational
objectives.

TRAINING
Training is a process of learning a sequence of programmed behaviour. It improves the employee's
performance on the current job and prepares them for an intended job.
Purpose of Training:
To improve Productivity: Training leads to increased operational productivity and increased company
profit.
To improve Quality: Better trained workers are less likely to make operational mistakes.
To improve Organizational Climate: Training leads to improved production and product quality which
enhances financial incentives. This in turn increases the overall morale of the organization.
To increase Health and Safety: Proper training prevents industrial accidents.
Personal Growth: Training gives employees a wider awareness, an enlarged skill base and that leads
to enhanced personal growth.

Steps in Training Process:

1) Identifying Training needs: A training program is designed to assist in providing solutions for specific
operational problems or to improve performance of a trainee.
Organizational determination and Analysis: Allocation of resources that relate to organizational goal.
Operational Analysis: Determination of a specific employee behaviour required for a particular task.
Man Analysis: Knowledge, attitude and skill one must possess for attainment of organizational
objectives.
2) Getting ready for the job: The trainer has to be prepared for the job. And also who needs to be trained -
the newcomer or the existing employee or the supervisory staff.
Preparation of the learner:
Putting the learner at ease Placing the learner as close to his normal
Stating the importance and ingredients of working position
the job Familiarizing him with the equipment,
Creating interest materials and trade terms
3) Presentation of Operation and Knowledge: The trainer should clearly tell, show, illustrate and question
in order to convey the new knowledge and operations. The trainee should be encouraged to ask questions in
order to indicate that he really knows and understands the job.

4) Performance Try out: The trainee is asked to go through the job several times. This gradually builds up
his skill, speed and confidence.

5) Follow-up: This evaluates the effectiveness of the entire training effort

TRAINING METHODS

Training methods can be broadly classified as on-the-job training and off-the-job training

a) On-the-job training: On the job training occurs when workers pick up skills whilst working alongside
experienced workers at their place of work. For example this could be the actual assembly line or offices where
the employee works. New workers may simply or observe fellow employees to begin with and
are often given instruction manuals or interactive training programmes to work through.

1. Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak areas and
tries to focus on them. It also offers the benefit of transferring theory learning to practice. The biggest
problem is that it perpetrates the existing practices and styles. In India most of the scooter mechanics
are trained only through this method.
2. Mentoring: The focus in this training is on the development of attitude. It is used for managerial
employees. Mentoring is always done by a senior inside person. It is also one-to- one interaction, like
coaching.
3. Job Rotation: It is the process of training employees by rotating them through a series of related jobs.
Rotation not only makes a person well acquainted with different jobs, but it also alleviates boredom
and allows to develop rapport with a number of people. Rotation must be logical.
4. Job Instruction: This method is also known as training through step by step. Under this method,
trainer explains the trainee the way of doing the jobs, job knowledge and skills and allows him to
do the job. The trainer appraises the performance of the trainee, provides feedback information and
corrects the trainee.
5. Committee Assignments: Under the committee assignment, group of trainees are given and asked to
solve an actual organisational problem. The trainees solve the problem jointly. It develops team work.
6. Apprenticeship: Apprenticeship is a formalized method of training curriculum program that combines
classroom education with on-the-job work under close supervision. The training curriculum is planned
in advance and conducted in careful steps from day to day. Most trade apprenticeship programs have
a duration of three to four years before an apprentice is considered completely accomplished in that
trade or profession. This method is appropriate for training in crafts, trades and technical areas,
especially when proficiency in a job is the result of a relatively long training or apprenticeship period,
e.g., job of a craftsman, a machinist, a printer, a tool maker, a pattern designer, a mechanic, etc.
7. Understudy: In this method, a superior gives training to a subordinate as his understudy like an
assistant to a manager or director (in a film). The subordinate learns through experience and observation
by participating in handling day to day problems. Basic purpose is to prepare subordinate for assuming
the full responsibilities and duties.

Advantages of On-the-Job Training:

1. It is directly in the context of job
2. It is often informal
3. It is most effective because it is learning by experience
 4. It is least expensive
5. Trainees are highly motivated
6. It is free from artificial classroom situations

Disadvantages of On-the-Job Training:

1. Trainer may not be experienced enough to train or he may not be so inclined.
2. It is not systematically organized
3. Poorly conducted programs may create safety hazards.

b) Off-the-job training: This occurs when workers are taken away from their place of work to be trained.
This may take place at training agency or local college, although many larger firms also have their own training
centres. Training can take the form of lectures or self-study and can be used to develop more general skills and
knowledge that can be used in a variety of situations. The various types of off-the-job training are
1. Instructor presentation: The trainer orally presents new information to the trainees, usually through
lecture. Instructor presentation may include classroom lecture, seminar, and workshop.
2. Group discussion: The trainer leads the group of trainees in discussing a topic.
3. Demonstration: The trainer shows the correct steps for completing a task, or shows an example of
a correctly completed task.
4. Assigned reading: The trainer gives the trainees reading assignments that provide new
information.
5. Exercise: The trainer assigns problems to be solved either on paper or in real situations related to
the topic of the training activity.
6. Case study: The trainer gives the trainees information about a situation and directs them to come to
a decision or solve a problem concerning the situation.
7. Role play: Trainees act out a real-life situation in an instructional setting.
8. Field visit and study tour: Trainees are given the opportunity to observe and interact with the
problem being solved or skill being learned.

Advantages of Off-the-Job Training

Trainers are usually experienced enough to train
It is systematically organized
Efficiently created programs may add lot of value

Disadvantages of Off-the-Job Training:

It is not directly in the context of job Trainees may not be much motivated
It is often formal It is artificial in nature.
It may not be based on experience.
It is expensive.

CAREER STAGES
What people want from their careers also varies according to the stage of one's career. What may have
been important in an early stage may not be important in a later one. Five distinct career stages have been
identified: trial, establishment/advancement, mid-career, and late career. Each stage represents different
career needs and interests of the individual

a) Trial stage: The trial stage begins with an individual's exploration of career-related matters and ends
usually at about age 25 with a commitment on the part of the individual to a particular occupation. Until the
decision is made to settle down, the individual may try a number of jobs and a number of organizations.
Unfortunately for many organizations, this trial and exploration stage results in high level of turnover
among new employees. Employees in this stage need opportunities for self-exploration and a variety of job
activities or assignments.
b) Establishment Stage: The establishment/advancement stage tends to occur between ages 25 and 44. In this
stage, the individual has made his or her career choice and is concerned with achievement, performance,
and advancement. This stage is marked by high employee productivity and career growth, as the individual
is motivated to succeed in the organization and in his or her chosen occupation. Opportunities for job
challenge and use of special competencies are desired in this stage. The employee strives for creativity and
innovationthrough new job assignments. Employees also need a certain degree of autonomy in this stage
so that they can experience feelings of individual achievement and personal success.

c) Mid Career Crisis Sub Stage: The period occurring between the mid-thirties and mid-forties during which
people often make a major reassessment of their progress relative to their original career ambitions and goals.

d) Maintenance stage: The mid-career stage, which occurs roughly between the ages 45 and64, has also been
referred to as the maintenance stage. This stage is typified by a continuation of established patterns of work
behavior. The person is no longer trying to establish a place for him or herself in the organization, but
seeks to maintain his or her position. This stage is viewed as a mid-career plateau in which little new ground
is broken. The individual in this stage may need some technical updating in his or her field. The employee
should be encouraged to develop new job skills in order to avoid early stagnation and decline.

e) Late-career stage: In this stage the career lessens in importance and the employee plans for retirement and
seeks to develop a sense of identity outside the work environment.

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

Objectives of Performance appraisal:

To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
To judge the effectiveness of the other human resource functions of the organization such as
recruitment, selection, training and development.
To reduce the grievances of the employees.

Process of performance appraisal:

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

b) Communicating the standards:After establishing the standards, it is the responsibility of the management
to communicate the standards to all the employees of the organization.The employees should be informed and
the standards should be clearly explained to them. This will help them to understand their roles and to know
what exactly is expected from them. The standards should also be communicated to the appraisers or the
evaluators and if required, the standards can also be modified at this stage itself according to the relevant
feedback from the employees or the evaluators.

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

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

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

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

METHODS OF PERFORMANCE APPRAISALS

PAST ORIENTED METHODS

1. Rating Scales: Rating scales consists of several numerical scales representing job related performance
criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from
excellent to poor. The total numerical scores are computed and final conclusions are derived.
Advantages Adaptability, easy to use, low cost, every type of job can be evaluated, large number of
employees covered, no formal training required. Disadvantages biases

2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No based
questions is prepared. Here the rater only does the reporting or checking and HR department does the actual
evaluation. Advantages economy, ease of administration, limited training required, standardization.
Disadvantages Raters biases, use of improper weighs by HR, does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two or more are given and
the rater indicates which statement is true or false. The rater is forced to make a choice. HR department
does actual assessment. Advantages Absence of personal biases because of forced choice. Disadvantages
Statements may be wrongly framed.

4. Forced Distribution Method: here employees are clustered around a high point on a rating scale. Rater is
compelled to distribute the employees on all points on the scale. It is assumed that the performance is
conformed to normal distribution. Advantages Eliminates Disadvantages Assumption of normal
distribution, unrealistic, errors of central tendency.

5. Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes
all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages
Evaluations are based on actual job behaviors, ratings are supported by descriptions, feedback is easy,
reduces recency biases, chances of subordinate improvement are high. Disadvantages Negative incidents
can be prioritized, forgetting incidents, overly close supervision; feedback may be too much and may
appear to be punishment.

6. Behaviorally Anchored Rating Scales (BARS): statements of effective and ineffective behaviors
determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which
behavior describes the employee performance. Advantages helps overcome rating errors. Disadvantages
Suffers from distortions inherent in most rating techniques.

7. Field Review Method: This is an appraisal done by someone

usually from corporate or HR department. Advantages Useful for managerial level promotions, when
comparable information is needed, Disadvantages Outsider is generally not familiar with employees work
environment, Observation of actual behaviors not possible.

8. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be
written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage
Tests may be apt to measure potential more than actual performance. Disadvantages Tests may suffer
if costs of test development or administration are high.

9. Confidential Records: Mostly used by government departments, however its application in industry is not
ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record
ratings with respect to following items; attendance, self-expression, team work, leadership, initiative,
technical ability, reasoning ability, originality and resourcefulness etc. The system is highly secretive and
confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is
highly subjective and ratings can be manipulated because the evaluations are linked to HR actions like
promotions etc.

10. Essay Method: In this method the rater writes down the employee description in detail within a number of
broad categories like, overall impression of performance, promoteability of employee, existing capabilities
and qualifications of performing jobs, strengths and weaknesses and training needs of the employee.
Advantage It is extremely useful in filing information gaps about the employees that often occur in a
better-structured checklist. Disadvantages It its highly dependent upon the writing skills of rater and most
of them are not good writers. They may get confused success depends on the memory power of raters.

11. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of
different methods that compare performance with that of other co-workers. The usual techniques used may
be ranking methods and paired comparison method.
a. Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why
best are not elaborated in this method. It is easy to administer and explanation.
b. Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs.
The number of comparisons may be calculated with the help of a formula as under.

Future Oriented Methods

1. Management By Objectives: It means management by objectives and the performance is rated against
the achievement of objectives stated by the management. Advantage It is more useful for managerial
positions. Disadvantages Not applicable to all jobs, allocation of merit pay may result in setting
short-term goals rather than important and long-term goals etc.

2. Psychological Appraisals: These appraisals are more directed to assess employees potential for future
performance rather than the past one. It is done in the form of in-depth interviews, psychological tests,
and discussion with supervisors and review of other evaluations. It is more focused on employees
emotional, intellectual, and motivational and other personal characteristics affecting his performance.
This approach is slow and costly and may be useful for bright young members who may have
considerable potential. However quality of these appraisals largely depend upon the skills of
psychologists who perform the evaluation.

3. Assessment Centers: An assessment center is a central location where managers may come
together to have their participation in job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups, computer simulations, role playing and
other similar activities which require same attributes for successful performance in actual job. The
characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating
ability, planning and organizational ability, self-confidence, resistance to stress, energy level, decision
making, sensitivity to feelings, administrative ability, creativity and mental alertness etc.
Disadvantages Costs of employees traveling and lodging, psychologists, ratings strongly influenced
by assesses inter-personal skills. Solid performers may feel suffocated in simulated situations. Those
who are not selected for this also may get affected.

4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an

individual group, derived from a number of stakeholders like immediate supervisors, team members,
customers, peers and self. In fact anyone who has useful information on how an employee does
a job may be one of the appraisers. This technique is highly useful in terms of broader perspective,
greater self-development and multi-source feedback is useful. 360-degree appraisals are useful to
measure inter-personal skills, customer satisfaction and team building skills. However on the negative
side, receiving feedback from multiple sources can be intimidating, threatening etc. Multiple raters may
be less adept at providing balanced and objective feedback.