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Wednesday, November 25, 2009

Employee Satisfaction Survey Project Report

‘People are our greatest asset’ is a mantra that companies have been chanting for years. But only a few companies have started putting Human Resources Management (HRM) systems in place that support this philosophy. There are a number of challenges in the Indian industry which require the serious attention of HR managers to ‘find the right candidate’ and build a ‘conducive work environment’ which will be beneficial for the employees, as well as the organization. The industry is already under stress on account of persistent problems such as attrition, confidentiality, and loyalty. Other problems are managing people, motivation to adopt new technology changes, recruitment and training, performance management, development, and compensation management. With these challenges, it is timely for organizations to rethink the ways they manage their people. Managing HR in the knowledge based industry is a significant challenge for HR managers as it involves a multi task responsibility. In the present scenario, HR managers perform a variety of responsibilities. Earlier their role was confined to administrative functions like managing manpower requirements and maintaining rolls for the organization. Now it is more strategic as per the demands of the industry.

Managing People
In view of the industry dynamics, in the current times, there is a greater demand for knowledge workers. Resumes abound, yet companies still fervently search for the people who can make a difference to the business. Often talented professionals enjoy high bargaining power due to their knowledge and skills in hand. The attitude is different for those who are taking up responsibilities at a lesser age and experience. These factors have resulted in the clear shift in approach to individualized career management from organization career commitment.

Motivating the Workforce
As the competition is growing rapidly in the global market, a technological edge supported by a talent pool has become a crucial factor for survival in the market. Naturally, as a result every organization gives top priority to technology advancement programs. HR managers are now performing the role of motivators for their knowledge workers to adopt new changes.

Competency Development
Human capital is the real asset for any organization, and this makes the HR role important in recruiting, managing, and retaining the best. The HR department has a clear role in this process and determines the success tempo of any organization. An urgent priority for most of the organizations is to have an innovative and competent HR pool; sound in HR management practices with strong business knowledge.

Recruitment and Training
Recruitment has become a major function from an imperative sub system in HR, particularly in the industry. HR managers play a vital role in creating assets for the organization in the form of quality manpower. Attracting new talent also is a top priority for software companies, but less so for smaller companies. Another challenge for HR managers is to put systems in place to make the people a perfect fit for the job. Skill redundancy is fast in the industry. To overcome this problem, organizations give the utmost priority to training and skill enhancement programs on a continuous basis. Many companies are providing technical training to the employees on a quarterly basis. These trainings are quite useful also in terms of providing security to the employees.

The Trust Factor
Low levels of trust inhibit tacit knowledge sharing in the knowledge based industry. It is essential that Our Company takes more initiatives to improve the security levels of the employees.

Work life Balance Factor
Another dimension to the challenges faced by our company is the growing pace of talent acquisition. This aspect creates with it the challenge of a smoother assimilation and the cultural binding of the new comers into the organization fold. The pressure of delivering the best of quality services in a reduced time frame calls for ensuring that employees maintain a work life balance.

Attrition/Retention of the Talent Pool
One of the toughest challenges for the HR managers in the industry is to deal with the prevalent high attrition levels. Though there is an adequate supply of qualified staff at entry level, there are huge gaps in the middle and senior level management in the industry. Further, the salary growth plan for each employee is not well defined. This situation has resulted in increased levels of poaching and attrition between organizations. The industry average attrition rate is 30–35 per cent and could range up to 60 per cent.

Bridging the Demand Supply Gap
HR managers have to bridge the gap between the demand and supply of professionals. They have to maintain consistency in performance and have to keep the motivation levels of employees high, despite the monotonous nature of work. The same also leads to recurring training costs. Inconsistent performance directly affects revenues. Dwindling motivation levels lead to a loss of interest in the job and a higher number of errors.

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Tuesday, November 24, 2009

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Sunday, November 22, 2009

Job Rotation and Transfer

Meaning of Job Rotation:
Job Rotation implies systematic movement of employees form one job to the other. Job remains unchanged but employees performing them shift from one job to the other. This is described as job rotation. With job rotation, an employee is given an opportunity to perform different jobs, which enriches his skills, experience and ability to perform different jobs. However, the jobs offered under job rotation are more or less of the same nature. As a result, he will be skilled to a new job which is more or less similar to his earlier job.

Benefits of Job Rotation
1. Raises intrinsic reward potential of a job: Job Rotation is likely to raise intrinsic reward potential of a job due to different skill and abilities needed to perform it. A worker becomes a broader based versatile worker due to job rotation. Management gets the benefit of job rotation because workers become competent in several jobs rather than only in one job. Staff adjustment in different department is possible easily due it the practice of job rotation.

2. Beneficial to the organization: Due to job rotation, the organization stands to gain because of the versatility of its employees who develop skills due to job rotation. It develops a common culture because of wide and common exposure to workers.

3. Worker becomes competent in several jobs: Due to job rotation, workers know about a variety of jobs. It also facilitates personal growth of employees and makes the workers more useful and valuable to the organization. The organization stands to benefit as the workers become competent in several jobs. As and result, the management gets employees who can perform a variety of tasks to meet contingencies.

4. Improves inter-departmental co-operation: Periodical job rotation improves inter-departmental co-operation. Employees understand each other’s problems properly and this facilitates co-operation among them.

5. Motivates employees: Job rotation technique is used for motivating employees in the organizations. It is suggested as a motivational strategy.

6. Reduce Boredom: Job rotation reduce boredom and disinterest among employees. Due to job rotation, a given employee performs different jobs of more or less the same nature. The employee gets some variety of work, workplace and peers.

7. Develops wide skills among workers: job rotation develops and wide range of skills among employees. It broadens knowledge and skills of an employee. Personal worth of employee also improves.


Job Rotation in HDFC Bank
In HDFC Bank all employees involved in the Job Rotation Schedule. In HDFC Bank the staff gets rotated in every 6 months and the officers get rotated in every 3 years.

The flexibility and consideration is given to those employees who have Physical difficulty for such employee there is no Job Rotation for example: Deaf and Dumb. Job Rotation takes in bank for other new comers to show their work as per their knowledge and to avoid frauds.

For Job Rotation of the employees meeting are held in every 6 months and for officers it is 3 years. The employees are been provided with the rule and regulation.

Job Rotation in Indian Overseas Bank:
In JOB all the employees involved in the job rotation schedule, the staffs, clerks and officers. The staffs and clerks have internal rotation and officers get rotate to other branch.

As per the Bank rule the staff gets rotated in every 6 months and the officers get rotated in every 3 years. The flexibility and consideration is been given and those individual who have physical deficiency have no job rotation.

The employees are involved in the rotation schedule for other individual to their talent and to avoid malpractices and frauds. Meetings are held to know the employee which further position he will take place to determine interest and gain involvement. According to the employee performance and response towards his job on that basis the job is rotated.

Job Rotation in RBI
In RBI the job rotation is mainly concerned with the officers. The officers in RBI get their job rotated in every year. For such job rotation the employees who are going to get rotated meeting are held so that the officers get to know their future role. According to the rules and conditions to determine interest and gain involvement.

Job Transfer
Meaning:
In business organizations, employees are shifted from one post to the other or from one department to other or one unit/ branch/ plant of the company to the other. This is called as job transfer of transfer of employees. Such transfers are quite common in case of Banks, government department, manufacturing companies and other business organizations.

A transfer is defined as, “a change in job where the new job is substantially equal to the old in term of pay, status and responsibilities.”

Transfers of employees do cerate some resentment from concerned employees. This is natural as transfers may create certain personal and family problems. In addition, an employee has to adjust with new situation. Finally it may be pointed out that transfer is neither promotion nor demotion but merely a horizontal or lateral movement of an employee from one job, to another at same other place where the salary, status and responsibilities are more or less the same.

Reasons of Job Transfer
1. Variation in the volume of work: Transfers are necessary due to variation in the volume of work in different department/ sections. Shortage of employees or increase in the work load in one department leads to transfer of employees.
2. Providing training to employee: Transfers are made for providing opportunities to employees for training and development.
3. Rectification of poor placement: Transfers are necessary for the rectification of poor placement made in the initial period. Similarly, transfers are necessary in order to utilize the service of an employee in the best possible manner.
4. Satisfied the personal need of employee: Transfers are necessary satisfy the personal needs (Personal Difficulties) of the employees. They include family problems, sickness, and education of children and so on. Such transfers take place especially among female employees.
5. Meeting mutual need of employees: Transfers are, sometimes, made in order to meet the mutual needs of to employees. It is a type of mutual exchange and is usually accepted by the management.
6. Meeting Organizational needs: transfers are necessary to meet the organizational needs developed out of expansion programmes or fluctuation in work requirements or changes in the organizational structure or dropping of existing product lines. For example, experienced workers and supervisors are transfer to new plants/ factories in order to manage the work smoothly.
7. Solution to poor performance: transfers are, sometimes, made when the worker fail to perform his job efficiently. He is transferred to and new place or post and is given an opportunity to improve his performance at a new place. Here, transfer is treated as a deter alternative to outright dismissal.
8. Avoiding fatigue and monotony: Transfers are made of avoiding fatigue and monotony of work. The productivity of an employee may decline due to monotony of his or her job. To break his monotony, the employee is transferred.
9. Removing poor personal relations: the relations between the workers and his supervisor may not be smooth and cordial. This may affect the work of department. One method to solve the problem is to transfer the worker that department. This transfer may be necessary for removal of the incompatibilities between the worker and his/her boss or between one worker and the other.
10. Providing relief and to punish employees: Transfers may be made in order to give relief to employees who are over burdened or are working under heavy risk or tension over a long period. Similarly, transfers are made as a disciplinary action for serious mistakes on the part of employees. This practice is widespread mainly in government offices and police department.

Principle of Sound Transfer Policy
Company managements must frame a policy on transfers and apply it to all transfers instead of treating each transfer on its own merits. Such policy must be based on the following principles of transfers:

1. Necessary Transfer: Transfers should be made only when absolutely necessary. The frequency of transfers and the minimum period between transfers need to be decided clearly and made know to all employees. The basis of transfers should be properly decided. Large scale transfers, frequent transfers and transfers for the sake of transfers should be avoided by laying down adequate selection and placement procedures for the purpose.

2. Responsibility of Transfers: Responsibility for initiating and approving transfer decisions should be clearly defined and properly located. The authority to handle transfers should be decided clearly. The best course is to centralize the authority handling transfers and make the personnel/HR department responsible for all transfers.

3. Fair Transfers: Transfer should not be made as a punishment or as revenge on an employee or simply to trouble an employee and his family members.

4. Consideration of Employees: Transfers should be made after taking concerned employee in to confidence and after explaining how transfer is in the best interest of the organization and employee.

5. Interest of Organization: All transfers should be made in the best interest of the organization. In addition, there should be sound justification in the case of all transfers made. The management should be able to prove its objectivity and impartiality as regards transfers made.

6. Sound Transfer Policy: Management should prepare a sound transfer policy for a long period. It should be given wide publicity for the information of employees. The interests of the organization should not be forgotten while framing a policy of transfers.

7. Employees View: An employee should be given an opportunity to appeal to an appropriate authority with full opportunity to an employee to express his views.

8. And request for transfer by an employee on sound personal grounds (e.g. family problems, health, schooling of children, unsuitability of climate, etc.) Should be considered sympathetically and granted promptly.

Types of Transfer
There are different types of transfers depending on purpose for which the transfers made. The important ones will now be highlighted as follows:

1. Production Transfers: These transfers are made from one department where the labour requirements are generally reduced to departments where labour needs are increasing or vacancies have occurred through separations. Such production transfers are made to prevent lay-offs. It is meaningless to have in the same organization lay-offs on one job and employees being needed in another department for a similar type of work. Thus, production transfers, at about the same occupational level, help to stabilize employment in an organization and therefore need some form of centralized control, say, through the Personnel Department. Sometimes, production transfers may involve downgrading, that is, being transferred to less skilled jobs. Although it is called production transfers, similar situations can also exist in non-manufacturing enterprises or divisions where an employee is transferred from one department to another for similar reasons.

2. Replacement transfers: From the view-point of purpose, replacement transfers are similar to production transfers as they also try to avoid lay-offs. Replacement transfers are used, however, to replace a new employee with an employee who has been in the organization for a long time.

3. Shift transfers: This is a common type of transfer of an employee from one shift to another on the same type of work. Workers generally dislike a second shift assignment as it affects their participation n community life.

Therefore, to minimize this, shift transfers are introduced. Of course, there are certain employees who would prefer the second or the third shift. For example, were the women are working, mothers might prefer to work in such shift so that they could be during the day with their children’s.

4. Remedial transfers: As the title suggests, these transfers are made to remedy the situation. For example, if the initial placement has been faulty, or the worker cannot gat along with his supervisor, a transfer to a more appropriate job or more agreeable supervisor might result in better performance. In this way, a good organization treats its employees as individuals, of course, within the broad policy framework.

5. Versatility transfers: The objective of these transfers is to increase the versatility of the employee by shifting hid from one job to another. In this way, the employee is provided a varied and broader job experience. This helps the employee through job enrichment and job enrichment. It can also help him get prepared for future promotions. Besides, it helps the organization, as enrichment of an employee would make him not only more effective but also ready for higher openings.

Job Transfer in Bank of Baroda
In Bank of Baroda there is different policy for Clark and Officer. Clarks are transfer every 5 year from one branch to another branch in the same region. Region indicates the cities like Mumbai, Pune and Nashik etc.
Officers of the branch are transfer every 3 year from one branch to another branch from one zone to another zone. Zone indicates south, north, west and west.

HR Practices in Hotel Industry

A project report on HR Practices in hotel industry on various five star hotels.

Workplace Environment and its Impact on Employee Performance

Many managers and supervisors labor under the mistaken impression that the level of employee performance on the job is proportional to the size of the employee’s pay packet. Although this may be true in a minority of cases, numerous employee surveys have shown by and large this to be untrue. In fact, salary increases and bonuses for performance, in many instances, have a very limited short-term effect. The extra money soon comes to be regarded not as an incentive but as an "entitlement".
There are other factors that when combined provide a more powerful determinant of employee performance. When these other factors are missing or diluted, the employee does come to work only for a paycheck. In this case, the employee is present at work in body only, leaving their mind outside the gate.

It is the quality of the employee’s workplace environment that most impacts on their level of motivation and subsequent performance. How well they engage with the organisation, especially with their immediate environment, influences to a great extent their error rate, level of innovation and collaboration with other employees, absenteeism and, ultimately, how long they stay in the job. Many studies have revealed that most employees leave their organisation because of the relationship with their immediate supervisor or manager.

So, what are the workplace environment factors that need to be taken into consideration by any serious manager? Described below are the key factors and how each can be utilised by supervisors and managers to boost performance.

Workplace Performance Factors
Goal-setting

Involve employees in setting meaningful goals and performance measures for their work. This can be done informally between the employee and their immediate supervisor or as part of an organisation’s formal performance management process. The key here is that each employee is actively engaged in the goal-setting process and takes ownership of the final agreed goals and measures.

Performance feedback
Regularly feed back to employees information on how they are performing. This should consist of both positive feedback on what the employee is doing right as well as feedback on what requires improvement. The feedback needs to be as objective as possible and delivered with the appropriate interpersonal and conflict resolution skills. It can be a mix of both informal feedback and feedback delivered as part of a formal performance management cycle.

Role congruity
Work to ensure that the role that the employee is required to perform is consistent with their expectations on joining the organisation and any subsequent training. The organisation’s role expectations are typically reflected in formal documents, such as Job Descriptions and Role Specifications. These expectations should be consistent with tasks allocated by the employee’s immediate supervisor.

Defined processes
Many errors, defects and customer complaints are the result of poor process management. Constrain the variability of how work is actually performed through documenting processes and communicating such expectations to employees. Verify on a regular or random basis that the work is actually performed in the way required. Along with goal setting, getting employees to help define and improve processes is a powerful opportunity for engagement.

Workplace incentives
Determine what motivates your employees in particular and set up formal and informal structures for rewarding employees that behave in the way required. Rewards may consist of a mix of internal rewards, such as challenging assignments, and external rewards, such as higher compensation and peer recognition.

Supervisor support
Act as advocates for employees, gathering and distributing the resources needed by them in order for them to be able to do a good job. Immediate supervisors and managers need to display the interpersonal skills required to engage employees and enhance their self-confidence. This includes providing positive encouragement for a job well done.

Mentoring/coaching
Make available to employees skilled and respected people to help them perform better in their current role and to assist them develop further into a future role. Mentors and coaches may be internal to an organisation or external. Either way, they will need to possess the necessary facilitation skills to assist employees apply existing sills and develop new skills.

Resource availability
The vast majority of employees take pride in their work and try hard to do a good job. Make sure that individual workloads and organisational systems and processes do not hinder employees from applying established skills or from practicing newly learned skills. Adequate time and material resources need to be available to enable them to perform to the best of their ability. Make their work easier and help minimise error rates and customer dissatisfaction by supplying job aids. These can include templates, guides, models and checklists.

Money is not a sufficient motivator in encouraging the superior workplace performance required in today’s competitive business environment. Managers and supervisors will need to be comfortable with working with the whole gamut of workplace factors that influence employee motivation. Skills required include the ability to engage employees in mutual goal setting, clarify role expectations and provide regular performance back. Time and energy will also need to be given to providing relevant performance incentives, managing processes, providing adequate resources and workplace coaching. Last but not least, to drive their organisations to peak performance managers and supervisors must put out front the human face of their organisation. Paramount here is the human-to-human interaction through providing individualised support and encouragement to each and every employee.

Five Steps for Effective Change Process

STEP 1: MOTIVATING CHANGE
Organizational change involves moving from the known to the unknown. Because the future is uncertain and may adversely affect people's competencies, worth, and coping abilities, organization members generally do not support change unless compelling reasons convince them to do so. This requires attention to two related tasks: creating readiness for change and overcoming resistance to change.

Creating Readiness for Change
One of the more fundamental axioms of OD is that people's readiness for change depends on creating a felt need for change. This involves making people so dissatisfied with the status quo that they are motivated to try new work processes, technologies, or ways of behaving. The following three methods can help generate sufficient dissatisfaction to produce change:

1. Sensitize organizations to pressures for change.
2. Reveal discrepancies between current and desired states.
3. Convey credible positive expectations for the change.

Overcoming Resistance to Change
At the organization level, resistance to change can come from three sources. Technical resistance comes from the habit of following common procedures and the consideration of sunk costs invested in the status quo. Political resistance can arise when organizational changes threaten powerful stakeholders, such as top executive or staff personnel, or call into question the past decisions of leaders. Finally, culture resistance takes the form of systems and procedures that reinforce the status quo, promoting conformity to existing values, norms, and assumptions about how things should operate.

STEP 2: CREATING A VISION
The second activity in leading and managing change involves creating a vision of what members want the organization to look like or become. Generally, a vision describes the core values and purpose that guide the organization as well as an envisioned future toward which change is directed. It provides a valued direction for designing, implementing, and assessing organizational changes. The vision also can energize commitment to change by providing members with a common goal and a compelling rationale for why change is necessary and worth the effort.

Research by Collins and Porras suggests that compelling visions are composed of two parts: (1) a relatively stable core ideology that describes the organization's core values and purpose, and (2) an envisioned future with bold goals and a vivid description of the desired future state that reflects the specific change under consideration.

Step 3: DEVELOPING POLITICAL SUPPORT
Managing the political dynamics of change includes the following activities:
- Assessing Change Agent Power
- Identifying Key Stakeholders
- Influencing Stakeholders

Step 4 : MANAGING THE TRANSITION
Implementing organizational change involves moving from the existing organiza¬tion state to the desired future state. There are three major activities and structure to facilitate organizational transition: activity planning, commitment planning, and change-management structures.

Activity Planning
This involves making a road map for change, citing specific activities and events that must occur if the transition is to be successful. Activity planning should clearly identify, temporally orient, and integrate discrete change tasks and should link these tasks to the organization's change goals and priorities.

Commitment Planning
This activity involves identifying key people and groups whose commitment is needed for change to occur and formulating a strategy for gaining their support.

Change-Management Structures
Because organizational transitions tend to be ambiguous and to need direction, special structures for managing the change process need to be created. These management structures should include people who have the power to mobilize resources to promote change, the respect of the existing leadership and change advocates, and the interpersonal and political skills to guide the change process.

Step 5 : SUSTAINING MOMENTUM
The following five activities can help to sustain momentum for carrying change through to completion: providing resources for change, building a support system for change agents, developing new competencies and skills, reinforcing new behaviors, and staying the course.

Types of OD Intervention

Information-based Intervention
Interventions that define : Activities that specify or clarify the vision, mission, purpose, process, products, services, market position, roles, relationships, responsibilities, outcomes, expectations, and so on. Examples: holding sessions to create vision statements; confirming market direction and market niche; mutually setting performance goals. This intervention is delivered when people are unclear, disagree, or have different expectations; there are conflicting objectives; or people do not have a shared understanding.

Interventions that inform: Activities that communicate goals, objectives, expectations, results, discrepancies, and so on. Examples: producing internal newsletters; holding debriefing sessions; giving feedback. This intervention is delivered when information has changed, the people have changed, or the people are uninformed, and the consequence is poor performance; or people don't get the information they need.

Interventions that document: Activities that codify information (to preserve it and make it accessible. Examples: setting up libraries; creating manuals, expert systems, job aids, and decision guides. This intervention is delivered when information is not accessible over time or is too complex; job aids, manuals, help screens, and so forth are lacking or inadequate, inaccurate, or hard to access.

Consequences-based Intervention
Interventions that reward: Activities and programs that induce and maintain desired behaviors, eliminate undesirable behaviors, and reward desired outcomes. Examples: holding public ceremonies and annual recognition events; paying for performance. This intervention is delivered when current incentives either reinforce the wrong behaviors or ignore the desired behaviors; or there are few incentives for people to-do beater, more, or differently.

Intervention that measure: Activities and systems that provide metrics and benchmarks so people can monitor performance and have a basis to evaluate it. Examples: developing a scorecard; tracking means and variance in performance over time. This intervention is delivered when people don?t know what criteria are being used to judge productivity, performance, value, and so on, and they could better control their own performance if they knew what the criteria were; measures of good performance are lacking; or measures are inappropriate.

Interventions that enforce: Activities that actualize consequences and achieve compliance. Example: policing; reviewing; double-checking; suspending; removing; withholding pay. This intervention is delivered when consequences for poor performance or unacceptable behavior are hidden or not enforced.

Design-based Intervention
Interventions that organize: Activities that change the structure or arrange business units, reporting relationships, work processes, jobs, and tasks. Examples: reengineering processes; merging functions; reorganizing responsibilities. This intervention is delivered when the current structure is inefficient, results in redundancy, adds excess costs, overly burdens cycle times, and hides accountability.

Interventions that standardize: Activities that systematize or automate processes and standardize tasks, tools, equipment, materials, components, or measures. Examples: adopting ISO 9000; implementing uniform standards. This intervention is delivered when deviations in equipment, materials, specifications, procedures, common practices, and so on add extra costs, result in low yields, and cause variance in the quality of work.

Interventions that (re) design: Activities that result in useful, easy-to-use, safe, and ergonomically designed environments, workplaces, equipment, and tolls. Examples: building in safety features; designing for ease of installation, service, maintenance, and upgrading. This intervention is delivered when the current work space, equipment, tools, or materials encumber, result in non-value adding activity. Or put employees? health and safety at risk.

Interventions that reframe: Activities and programs that generate new paradigms so that people can experience new perspectives, find creative solutions, integrate new concepts into their behavior, and manage change. Examples: challenging assumptions; engaging in dialogue/ entering into new alliances; brainstorming; creating alternative futures. This intervention is delivered when old attitudes about work are preventing innovation or growth.

Interventions that counsel: activities and programs that help individuals, either singularly or collectively, deal with work, personal, career, family, and financial issue. Examples: offering on-site daycare, retirement seminars, on-site physical fitness canters, and employee assistance programs. This intervention is delivered when people are preoccupied with or distracted by personal and career issues, and this is limiting productivity or adding unnecessary costs.

Interventions that develop: Activities and programs that expand skills and knowledge. Examples: offering training, coaching, and structured on-the-job experiences. This intervention is delivered when current performance is suffering or future performance will suffer because people lack skills and knowledge.

Interventions that align: Activities and programs that work toward congruency between purpose and practice. Examples: setting up cross-functional teams; soliciting customer (internal and external) feedback. This intervention is delivered when current massages, behaviors, systems, structures, or environments do net support the organization's goals.

Saturday, November 21, 2009

Performance Appraisal ebook

A very good ebook on Performance Appraisal.....hope it will be useful for you.
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Thursday, November 19, 2009

Effectiveness of Training & Development

EXECUTIVE SUMMARY
The project was undertaken to analyze the concept of, “Training method effectiveness in meeting the KSA objectives of an organisation” and to adopt the best practices of the industry to serve the customer.

To accomplish the above, around 42 employees of Keane, a Global business and IT Consulting firm, in Greater Noida were surveyed and interviewed. The core purpose of the survey was to find out employee perspective towards the training (mainly induction) that are given to them.

An interview based on a questionnaire to know what does the employee feels in general towards its own organization and the training methods used. The idea behind the study is to adopt the best practices and to eliminate the pitfalls of the system. The project is an approach is how to give feedback on training method effectiveness in meeting the objectives of the organization.

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Wednesday, November 18, 2009

Competancy Mapping Project report

Introduction
Today organizations are all talking in terms of competence. Gone are the days when people used to talk in terms of skill sets, which would make their organizations competitive. There has been a shift in the focus of the organizations. Now they believe in excelling and not competing. It is better to build a core competency that will see them through crisis. And what other way than to develop the people, for human resource is the most valuable resource any organization has.

Organizations of the future will have to rely more on their competent employees than any other resource. It is a major factor that determines the success of an organization. Competencies are the inner tools for motivating employees, directing systems and processes and guiding the business towards common goals that allow the organizations to increase its value. Competencies provide a common language and method that can integrate all the major HR functions and services like Recruitment, Training, performance management, Remuneration, Performance appraisal, Career and succession planning and integrated Human resource management system.

Over the past 10 years, human resource and organizational development professionals have generated a lot of interest in the notion of competencies as a key element and measure of human performance. Competencies are becoming a frequently-used and written-about vehicle for organizational applications such as:
• Defining the factors for success in jobs (i.e., work) and work roles within the organization
• Assessing the current performance and future development needs of persons holding jobs and roles
• Mapping succession possibilities for employees within the organization
• Assigning compensation grades and levels to particular jobs and roles
• Selecting applicants for open positions, using competency-based interviewing techniques

Competencies include the collection of success factors necessary for achieving important results in a specific job or work role in a particular organization. Success factors are combinations of knowledge, skills, and attributes (more historically called “KSA’s”) that are described in terms of specific behaviors, and are demonstrated by superior performers in those jobs or work roles. Attributes include: personal characteristics, traits, motives, values or ways of thinking that impact an individual’s behavior.

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Tuesday, November 17, 2009

Dejobbing project report

Dejobbing-meaning
Whether specialized, enlarged, or enriched, workers still generally have specific jobs to do, and these jobs have required job descriptions and job analysis. In many firms today, however, jobs are becoming more amorphous (unorganized, vague) and more difficult to define. In other words, the trend is towards dejobbing. Dejobbing is “broadening the responsibilities of the company jobs, and encouraging employees not to limit themselves to what’s on their job descriptions.”
De jobbing is the result of several changes taking place in business today. Firms need to keep pace with a number of revolutionary forces- accelerating product and technological changes, global competition, deregulation, political instability, demographic changes, and a shift to a service oriented economy and the arrival of the information age. Forces like these have changed the playing field on which firms compete. This rapid change has increased the need for firms to be responsive, flexible, and generally more competitive and capable of competing in a global market place.
Flattening organizations, creating empowered teams, re-engineering and the like are the techniques which make firms highly responsive, flexible and competitive. Firms are slowly moving towards new configurations, ones built around jobs that are broad and that may change everyday. People in such situations no longer can take their cues from job descriptions or a supervisor’s instructions. Signals come from changing demands of work. Workers learn to focus on their individual effort and collective resources in such work that need doing. They change as the need of the hour changes.

Reasons for dejobbing the organization
The organizational methods managers use to accomplish the various changes have helped weaken the meaning of job as a well- defined and clearly delineated set of responsibilities. Here is a sampling of organizational factors that have contributed to this weakening and to encouraging workers not to limit themselves to narrowly defined jobs.
1. Flatter Organizations
Instead of traditional, pyramid-shaped organizations with seven or more management layers, flat organizations with just three or four levels are more prevalent. Most large firms have already cut their management layers from a dozen to six or fewer. Because the remaining managers have more people reporting to them, they can supervise them less, so the jobs of subordinates end up bigger in terms of both breadth and depth of responsibilities.

2. Work Teams
Managers increasingly organize tasks around teams and processes rather than around specialized functions. For example, at Chesebrough-Ponds USA, a subsidiary of Unilever, mangers replaced a traditional pyramidal organization with multi-skilled, cross functional, and self-directed teams; the latter now run the plant’s four product areas. Hourly employees make employee assignments, schedule overtime, establish production times and changeovers, and even handle cost control, requisitions, and work orders. They also are solely responsible for quality control under the plant’s continuous quality improvement program. In an organization like this, employee’s jobs change daily; there is thus an intentional effort to avoid having employees view their jobs as a specific, narrow set of responsibilities.

3. The Boundary-less Organization
In a boundary-less organization the widespread use of teams and cross-functional task forces reduces and makes more permeable the boundaries that typically separate departments (like sales and production) and hierarchical levels. The Boundary-less organization foster responsiveness by encouraging employees to rid themselves of that’s-not-my-job attitude that typically create walls between one employee area and another. Instead the focus is on defining the project or task at hand in terms of the overall best interests of the organization, thereby further reducing the idea of a job as a clearly defined set of duties.

4. Reengineering
Re-engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed. The principles that shaped the structure ad management of business for hundreds of years like highly specialized divisions of work should be retired. Instead, the firm should emphasize combining tasks into integrated, unspecialized processes (such as customer service) assigned to team of employees.
You can reengineer jobs in many ways. For example, you can combine several different specialized jobs into a few relatively enlarged and enriched ones. Typically, in reengineered situations workers tend to become collectively responsible for overall results rather than being individually responsible for just their own tasks. They share joint responsibility with their team members for performing the whole process, not just a small piece of it. They not only use a broader range of skills from day to day, they have to be thinking of a far greater picture. Most important, while not every members of the team will be doing exactly the same work the lines between the workers jobs blur, and jobs are thus very broadly defined.

The quantitative and qualitative aspects of dejobbing
In the quantitative sense, dejobbing is simply a game of numbers: the same work that used to require 100 workers a few years ago may be done by 50 today-and maybe by 10 tomorrow. This of course is old shoe as we have been turning manufacturing tasks over to machines for almost 200 years. In the 1950s, 33% of the US labor force was employed in manufacturing. By the 1990s, that number dropped to less than 17%. Advanced robotics and the introduction of smarter digital machines eventually will take over almost all the tasks on the assembly floor. Indeed, many manufacturers may need almost no manual workers within 20 years.

The service sector will be the most affected next. Already, much of the repetitive jobs done by clerical workers and secretaries are increasingly being done more cheaply and efficiently with information technologies. A case in point is the one of bank tellers vs. ATMs. An ATM can conduct 2,000 transactions a day, 168 hours a week compared with 200 transactions and about 40 hours for a teller. The ATM’s annual cost of about USD 22,000 is probably cheaper than a full-time employee with benefits!

It is obvious that not just blue-collar jobs are disappearing. White-collar jobs are disappearing even faster, and still more of them are at risk.

There is a qualitative shift going on too. It is not just that fewer of the old-style jobs are left. It is that the work situations encouraged by the new technological and economic realities are not jobs in the traditional sense; and a great deal of what is being done in today’s organizations is done by people who do not have “a real job.” The emergence of these new work practices that were mainly in the form of widespread use of outsourcing and the hiring of “independent contractors” and temporary workers resulted in the severe layoffs suffered by American factory workers in the 1980s, and white-collar office workers from the early 90s to this day.

Case- British Petroleum
British Petroleum [BP] felt the need for flatter and empowered employees inspired the management to replace job descriptions with matrices listing skills and skill levels. The senior management wanted to shift employees’ attention from job description [“that’s not my job” mentality] to one that would motivate employees to obtain the new skills they needed to accomplish their broader responsibilities. The solution was a skills matrix. Skills matrices were created for various jobs within two classes of employees, those on a management track and those whose aims lay elsewhere [such as those who stayed in engineering]. For each job or job family [such as the position of a drilling manager], a matrix was prepared.
It identified
(1) the basic skills needed for that job, and
(2) the minimum level of each skill required for that job or job family.
Such a matrix shifts employees’ focus. The focus is no longer on job description which lists specific job duties. Instead, the focus is on developing new skills needed for employees’ broader, empowered, and often relatively undefined responsibilities.
The skills matrix approach has prompted other HR changes in BP’s exploration division. For example, the matrices provide a constant reminder of the skills that employees must improve, and also the firm’s new skill based pay rewards based on skill improvement. Similarly, performance appraisals now focus more on employee skill, and every training programme emphasizes developing broad skills like leadership and planning- ones that are applicable across a wide range of responsibilities and jobs.
Broader HR issues are also involved when firms de-job. The de-jobbed company should find people who can work well without the cue system of job descriptions. This puts a premium on hiring people, as the people should be with the skills and values to handle empowered jobs.
There is also a shift from training to education, in other words from teaching employees the “how” of job to increasing their insight and understanding regarding its “why”. In a rapidly changing industrial environment, the demands for flexibility and responsiveness mean that it is impossible to hire people who already know everything. Here continuing education over the course of the employees’ organizational career becomes the norm.

Trends in participative management

A pdf/ppt file for refrence for trends in participative management.

Job enrichment

There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out .these methods are as follows :-
I. Job rotation
II. Job enlargement
III. Job enrichment

Job enrichment :-
Job enrichment is a term given by Fedric herzberg. According to him a few motivators are added to a job to make it more rewarding, challenging and interesting. According to herzberg the motivating factors enrich the job and improve performance.
In other words we can say that job enrichment is a method of adding some motivating factors to an existing job to make it more interesting. The motivating factors can be-
a) Giving more freedom.
b) Encouraging participation.
c) Giving employees the freedom to select the method of working.
d) Allowing employees to select the place at which they would like to   work.
e) Allowing workers to select the tools that they require on the job.
f) Allowing workers to decide the layout of plant or office.

Job enrichment gives lot of freedom to the employee but at the same time increases the responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies the needs of the employees.

Advantages of job enrichment
1. Interesting and challenging job :-
When a certain amount of power is given to employees it makes the job more challenging for them, we can say that job enrichment is a method of employee empowerment.
2. Improves decision making :-
Through job enrichment we can improve the decision making ability of the employee by asking him to decide on factory layout, method and style of working.
3. Identifies future managerial caliber :-
When we provide decision making opportunities to employees, we can identify which employee is better that other in decision making and mark employees for future promotion.
4. Identifies higher order needs of employees :-
This method identifies higher order needs of the employee. Abraham maslow’s theory of motivation speaks of these higher order needs e.g. ego and esteemed needs, self actualization etc. These needs can be achieved through job enrichment.
5. Reduces work load of superiors :-
Job enrichment reduces the work load of senior staff. When decisions are taken by juniors the seniors work load is reduced.

Disadvantages of job enrichment
1. Job enrichment is based on the assumptions that workers have complete knowledge to take decisions and they have the right attitude. In reality this might not be the case due to which there can be problems in working.
2. Job enrichment has negative implications ie. Along with usual work decision making work is also given to the employees and not many may be comfortable with this.
3. Superiors may feel that power is being taken away from them and given to the junior’s. This might lead to ego problems.
4. This method will only work in certain situations. Some jobs already give a lot of freedom and responsibility; this method will not work for such jobs.
5. Some people are internally dissatisfied with the organization. For such people no amount of job enrichment can solve the problem.

Human Resource Planning

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

The process of HRP plays a very important role in the organization. The importance of HRP can be explained as follows.

1. Anticipating future requirement :-
Thru this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future.

2. Recruitment and selection process :-
The recruitment and selection process is a very costly affair for a company. Many companies spend lakhs of rupees on this process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not.

3. Placement of personnel :-
Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant.

4. Performance appraisal :-
HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process.

5. Promotion opportunity :-
HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner.

Limitations of human resource planning

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.
Although HRP is a very advantageous method it has some limitations which can be explained as follows

1. The future is uncertain :-
The future in any country is uncertain i.e. there are political, cultural, technological changes taking place every day. This effects the employment situation. Accordingly the company may have to appoint or remove people. Therefore HRP can only be a guiding factor. We cannot rely too much on it and do every action according to it.

2. Conservative attitude of top management :-
Much top management adopts a conservative attitude and is not ready to make changes. The process of HRP involves either appointing. Therefore it becomes very difficult to implement HRP in organization because top management does not support the decisions of other department.

3. Problem of surplus staff :-
HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain employees are removed from company it mostly affects the psyche of the existing employee, and they start feeling insecure, stressed out and do not believe in the company. This is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need not be removed from the company.

4. Time consuming activity :-
HRP collects information from all departments, regarding demand and supply of personnel. This information is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time.

5. Expensive process :-
The solution provided by process of HRP incurs expense. E.g. VRS, overtime, etc. company has to spend a lot of money in carrying out the activity. Hence we can say the process is expensive.

Factors affecting Human Resource Planning in an organization

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

1. Employment :-
HRP is affected by the employment situation in the country i.e. in countries where there is greater unemployment; there may be more pressure on the company, from government to appoint more people. Similarly some company may force shortage of skilled labour and they may have to appoint people from other countries.

2. Technical changes in the society :-
Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, company may retain existing employees and teach them the new technology and in some cases, the company have to remove existing people and appoint new.

3. Organizational changes :-
Changes take place within the organization from time to time i.e. the company diversify into new products or close down business in some areas etc. in such cases the HRP process i.e. appointing or removing people will change according to situation.

4. Demographic changes :-
Demographic changes refer to things referring to age, population, composition of work force etc. A number of people retire every year. A new batch of graduates with specialization turns out every year. This can change the appointment or the removal in the company.

5. Shortage of skill due to labour turnover :-
Industries having high labour turnover rate, the HRP will change constantly i.e. many new appointments will take place. This also affects the way HRP is implemented.

6. Multicultural workforce :-
Workers from different countries travel to other countries in search of job. When a company plans it’s HRP it needs to take into account this factor also.

7. Pressure groups :-
Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as they are very capable for creating problems for the company, when issues concerning these groups arise, appointment or retrenchment becomes difficult. You can read external factors on following link - External factors affecting Human Resource Management

Monday, November 16, 2009

HRM origin in India Project Report

Human Resource Management (HRM) act as a catalyst for overall development of nation’s economy. HRM is a way of management that links people-related activities to the strategy of a business or organisation. HRM is often referred to as "strategic HRM". It has several goals:
  • To meet the needs of the business and management (rather than just serve the interests of employees);
  • To link human resource strategies / policies to the business goals and objectives;
  • To find ways for human resources to "add value" to a business;
  • To help a business gain the commitment of employees to its values, goals and objectives.
It is an approach to the management of people in an organization. Organizations are made up of people i. e employees and function through them. It is the human resource which brings success and prosperity to a business enterprise. Human Resource Management also called Personnel Management, deals with various problems relating to manpower employed. Such problems include personal planning, recruitment and selection, induction, performance appraisal, employee training and development, promotions and transfer of employees, compensation payment, career planning and participative management. The person who looks after personnel functions/ problems is called Personnel/Human Resource Manager. HRM is relatively a new term for what was earlier called as personnel management. The term HRM got popularity in the USA by 1970s. This is a management function which helps managers to plan, recruit, select, train, develop, remunerate and maintain members for an organization. HRM is the latest nomenclature use to denote personnel management. The policies of management relating to personnel matters/problems are called policies. Human Resource Management in a Business Context provides an international focus on the theory and practice of people management. A thorough and comprehensive overview of all the key aspects of HRM, including case studies, articles from HRM Guide and other sources, key concepts, review questions and problems for discussion and analysis.
Download full project report below -

HRM in IT Project Report

INTRODUCTION
The current scenario in the IT sector-
India has the largest pool of manpower, second only to the US.
According to a study conducted by the National Association of Software and Services Companies (NASSCOM)-quantity of skilled knowledge workers in India seems to be a non-issue, and it would be so atleast for another couple of years.

The arithmetic out of 1.22lakh engineering graduates qualifying every year in India, about 73,000 are software engineers from IITs and other RECs. Thus, around 73,000 fresh software engineers are expected to be available annually. Total demand for software professionals during the next couple of years is estimated at 1.40 lakh. Against this, India is expected to have a pool of 1.46 lakh software engineers. Besides, quite a few Indian universities have started courses leading to Masters in computer Applications and there are private Training Institutes which offer high level software engineering courses.

According to an AIMA survey, 60% of the IT Companies have a written job description of all levels of employees. The rest 40% either have a partly written job description or they donot have anything written at all making it difficult for both the employee and the employer.

Most CEOs site lack of skilled professionals as one of the major hindrances to growth in the Indian Software Industry. Reputed software companies might get people at the base level but getting somebody with an experience of more than 4-6 yrs is a problem. The problem of retention was more prevalent in the telecom, IT and the Services sector than manufacturing and traditional sector.

When asked about employee retention, the majority among HR professionals of IT felt that it was all about retaining good people in the company and creating such situations for the non-performing employees that they quit on their own. It was felt that employee retention was a collective responsibility of the HR department, top management and individual departments in an ascending order with the HR Department having the maximum and individual department having minimum accountability.

Data shows that in companies with more than 1000 employees, the HR Department was strong whereas in mid-sized companies, the individual department was responsible along with the top management.

Large companies with growth rate higher than 10% did not face serious retention problems, but large companies with lower growth rates had acute problems in retaining their employees. In all industry segments, the employee attrition rates at the junior level were on the higher side compared to that at the top management level.

Studied over the last two years, retention levels have either increased or remained same due to better compensation, healthy competitive environment, higher profitability of the company, and good working conditions. But the case is not so with the IT sector, where the key motivator is the lure of U.S market.

Sunday, November 15, 2009

Full HRM Notes

Topics Included...
  • Compensation
  • HR Fucntions, Strategies
  • HR Planning, Recruting and Selection
  • HR Programmes
  • Human_Resource_Management
  • HRM Challenges
  • Notes- Remuneration
  • Recrutiment and Selection
  • training And performance appraisal
  • Promotion,remuneration&participative mgt
  • Definations and Conceptsof HR- notes

Notes on Industrial Relations

Here are full notes on Industrial Relations.....best for hr people as well as personnel management students.

Saturday, November 14, 2009

Labour Legislation notes

Introduction:
The term `labour 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.

Need for labour legislation in India:
=> Organized industry in a planned economy calls for the spirit of co-operation and mutual dependence for attaining the common purpose of greater, better and cheaper production.
=> Since this has not been happening voluntarily, the need for State intervention.
=> In India, labour legislation is treated as an arm of the State for the regulation of working and living conditions of workers.

The need for labour legislation may be summarized as under:
o Necessary for the health, safety, and welfare of workers;
o Necessary to protect workers against oppressive terms as individual worker is economically weak and has little bargaining power;
o To encourage and facilitate the workers in the organization;
o To deal with industrial disputes;
o To enforce social insurance and labour welfare schemes.

Objectives:
The objectives of labour legislations are two-fold:
o Preservation of the health, safety and welfare of workers; and
o Maintenance of good relations between employers and employees.

Principles of labour legislation:
Social Justice:
o The essence of democracy is ensuring social justice to all sections of the community.
o This demands the protection of those who cannot protect themselves.
o In modern industrial set-up, workers, left to themselves, are unable to protect their interest.
o Therefore, the State has to intervene to help them by granting them freedom of association, the power of collective bargaining and by providing for mediation or arbitration in the case of industrial conflict.

Social Equity:
o Legislation based on this principle provides for achievement of definite standards.
Standards in terms of living, position in society etc. of the working population.
These standards for the working class can be achieved by bringing about changes in the Law of our land.
o Power to change the Law is exercised by the government.
Existing laws may be amended to meet the changed standards.

National Economy:
o Measures have to be provided through legislation to:
Ensure normal growth of industry for the benefit of the nation as a whole;
Satisfy the physical and intellectual needs of the citizens;
Ensure the growth of industrial efficiency such as to adjust the wage system with a view to increase the productivity and prosperity of the workers.

International Uniformity:
o Since its inception, securing minimum standards (for the working population – worldwide) on a uniform basis in respect of all labour matters has been the main objective of ILO.
o To this end, conventions are passed at the conferences of ILO.
o As a member of the ILO, adopting these conventions would require appropriate legislation to be brought about.
o The influence of international labour conventions has been significant in shaping the course of labour legislation in India.

Labour Legislation in India:
In India, we have many labour laws that affect the labour conditions. The main laws are:
o The Factories Act, 1948.
o The Trade Union Act, 1926.
o The Industrial Disputes Act, 1947.
o The Payment of Wages Act, 1936.
o The Minimum Wages Act, 1948.
o The Equal Remuneration Act, 1976.

TRADE UNION LEGISLATION
Background to Trade Union Legislation in India:
In India, labour organizations came into existence in the last decade of the 19th Century.
But they appeared in their modern form only in 1914.
Their numbers increased, their membership expanded and they became active in seeking to promote and safeguard the interest of workers.
But they had to face hostilities from the employers and the public authorities.
o The legality of trade unions was doubted.
o They were perceived as bodies trying to restrain others from exercising a lawful profession, trade, or business.
o For example, the Indian Penal Code and the Indian Contract Act were interpreted against them. As a result, members of trade unions who were pursuing their rights were severely punished.

The scenario was so because at that time, the Common Law was applicable to the trade unions. They did not have a separate legislation governing them.
Strong demands were made for legislation recognizing workers’ right to organize and engage in concerted activities.
In 1921, Mr. N.M. Joshi, the then General Secretary of AITUC, moved a resolution that the Legislative Assembly adopted.
o The resolution urged the Government to take immediate steps for registration of trade unions and protection of the legitimate trade union activities.
The local state Governments were requested to ascertain the view of public bodies and private persons on issues like the proposed legislation, recognition of strikes, protection of trade unions from civil and criminal liabilities, management of unions, etc.
After receiving the feed-back from the local State Governments, the Government of India drew up a Bill that was introduced in the Legislative Assembly on 31-Aug-1925.
The Bill was passed in 1926 and the Trade Union Act came into existence.
o The Act came into force on 01-Jun-1927.
The Act, with subsequent amendments, is still in force in the country.

Efforts at Amendments:
Trade Unions (Amendment) Act, 1947:
o The issue of employers’ reluctance in recognizing trade unions was felt since the very enforcement of the Act.
o To this end, in 1946, the Trade Unions (Amendment) Bill was put before the Central Legislature.

The Bill provided for the compulsory recognition of registered trade unions.
o The Bill was referred to the Select Committee for their vetting and suggestions.
o On the basis of their recommendations, the Bill was passed on 13-Nov-1947.
o The Governor General of India gave his consent on 20-Dec-1947.
o The Indian Trade Unions (Amendment) Act, 1947:
Introduced penalties for certain unfair labour practices by recognized trade unions as well as employers.
Provided for compulsory recognition of trade unions on the basis of certain prescribed conditions.
A registered trade union could apply for recognition to the employer.
In case such recognition could not be received within three months, the trade union could approach the Labour Court.
If the Labour Court believed that the trade union fulfilled conditions of recognition, it could pass an order directing such recognition.
The executive of a recognized trade union was empowered to act as an authorized bargaining agent of the employees and negotiate with the employers.
o However, the Act has not been brought into force so far.

Trade Unions Bill, 1950:
o Further amendments were suggested at the Labour Ministers’ Conference in 1949.
o On the basis of these discussions, the Trade Union Bill was introduced in the Parliament on 23-Feb-1950.
o The Bill:
Provided for the registration and recognition of trade unions;
Defined the law relating to registered and recognized trade unions;
Recognized unfair labour practices.
o The Bill was discussed at the 10th session of the Indian Labour Conference in March 1950.
o This Bill too was referred to the Select Committee who submitted their report on 01-Dec-1950.
o The Bill lapsed owing to the dissolution of the Parliament.
o Some minor amendments were introduced in 1960 and 1964.

Industrial Relations Bill, 1978:
o The first National Commission on Labour (1969) gave certain recommendations.
o On the basis of these recommendations, the Central Government, in consultation with the State Governments, employers’ and workers’ organizations, formed a comprehensive Industrial Relations Bill in 1978.
o But the Bill could not be passed.

Trade Unions (Amendment) Bill, 1982:
o This Bill contained:
Provisions relating to machineries for the resolution of inter and intra-union disputes;
Modifications in the procedures for registration and cancellation of registration; and
Reduction in the proportion of outsiders in the executive of trade unions.
o This Bill also could not be passed.

Trade Unions (Amendment) Act, 2001:
o The broad features of the amending Act of 2001 are:
Requirement of 10% or 100 workmen (whichever is less) employed in an establishment or industry with a minimum of 7 workmen as members for being eligible for registration as workers’ trade union in place of only 7 persons provided for earlier, and subsequent maintenance of this membership after registration;
Election of members of executive and office-bearers at an interval of not more than 3 years;
Prescribing minimum subscriptions for rural, unorganized, and other workers;
Designation of appellate courts;
Limiting the proportion of outsiders to 1/3rd of the total number of office-bearers or 5, whichever is less, generally 50% in the organized sector; and
Debarring members of Council of Ministers or persons holding office of profit in the Union or State (excluding those persons who are employed in an establishment or industry with which the trade union is connected) from membership of the executive or other office-bearer of a registered trade union.

The Trade Unions Act, 1926
Introduction:
The Act came into force on 01-June-1927.
The Act was passed to regulate:
o Conditions governing the registration of trade unions;
o Obligations imposed on registered trade unions; and
o Rights and liabilities of registered trade unions.
The Act extends to the whole of India, and since 1970 also includes Jammu and Kashmir.

Definitions:
Appropriate Government [Sec. 2]:
o Trade Unions whose objectives are not confined to one state, the ‘appropriate government’ means the central government.
o In relation to other trade unions, the appropriate government means the state government.
Trade Dispute [Sec. 2(g)]: Means any dispute
o Between employers and workmen, or
o Between workmen and workmen, or
o Between employers and employers, which is connected with
The employment or non-employment, or
The terms of employment, or
The conditions of labour,
Of any person.
Trade Union [Sec. 2(h)]: It means any combination, whether temporary or permanent, formed
o Primarily for the purpose of regulating the relations
Between workmen and employers, or
Between workmen, or
Between employers and employers, or
o For imposing restrictive conditions on the conduct of any trade or business.
o It includes any federation of two or more trade unions.

Appointment of Registrars: [Sec.3]
The state government appoints the Registrar, and if need be, the Additional Registrar and Deputy Registrar for the state.
The state government also defines the local limits within which these persons will exercise and discharge the powers and functions so specified.

Registration of trade unions: [Sec. 4-5]
Application: Any seven or more members of a trade union may by subscribing their names to the rules of the trade union and by otherwise complying with the provisions of the Act with respect to registration, apply for registration.
o The application has to be made to the registrar of trade unions.
o The application has to be accompanied by:
A copy of the rules of the trade union;
The names, occupations and addresses of the members making the application;
The name of the trade union and the address of its head office;
The titles, names, ages, addresses and occupations of the officers of the trade union; and
If the trade union has been in existence for more than one year before making such application, then a general statement of its assets and liabilities prepared in the prescribed form has also to be delivered.
Registration: [Sec.8]
o The Registrar, on being satisfied as to the compliance of all the requirements for registration, shall register the trade union.
o The Registrar does this by entering the details relating to the trade union in his register.

Certificate of Registration:
o This is the conclusive evidence that the trade union is duly registered under the Act.
o Now the trade union acquires the characteristics of a Body Corporate.
 Separate legal entity, perpetual existence and a common seal, power to acquire and hold both movable and immovable properties, power to contract, and it can, by the name under which it is registered, sue and be sued.

Rules of trade union: [Sec.6]
Rules are to be prepared by the trade unions as a pre-condition to registration.
The following points must be included:
o The name of the trade union;
o The whole of its objects;
o The whole of the purposes for which the general funds of the trade union shall be applicable;
o The maintenance of a list of the members of the trade union and adequate facilities for the inspection thereof by the office-bearers and the members of the trade unions;
o The admission of ordinary members (persons actually working in the establishment or industry with which the trade union is associated) and also the admission and the number of the number of honorary or temporary office bearers to the executive of the trade union.
o The payment of subscription by the members of trade union;
Rural workers – Re.1/yr.
Workers in other unorganized sectors – Rs.3/yr.
Remaining workers – Rs.12/yr.
o The conditions for receiving any benefit assured by the rules and conditions for imposition of fines on the members;
o The manner in which the rules shall be amended, varied or cancelled;
o The manner in which the members of the executive and other office-bearers shall be appointed and removed (keeping in mind that elections have to be held within a gap of three years);
o The safe custody of the funds of the trade union and annual audit of the accounts, and facilities for the inspection of the account books by the office-bearers and members of the trade union; and
o The manner in which the trade union may be dissolved.

Change of name: [Sec. 23, 25 and 26]
Consent of not less than 2/3rd of the total number of members is required
Notice of the change has to be sent to the registrar in writing.
The notice has to be signed by the secretary and by seven members of the trade union.
On being satisfied as to the compliance of the regulations regarding change of name, the Registrar will record the changes in his register.
The change in name does not affect any rights or obligations of the trade union or render defective, legal proceedings by or against the trade union.

Cancellation of registration: [Sec. 10]
The Registrar could take this step in the following situations:
o On application of the trade union;
o If the Registrar is satisfied that the certificate has been obtained by fraud or mistake; or
o If the Registrar is satisfied that the trade union has:
Ceased to exist;
Willfully contravened any provisions of the Act;
Allowed any rule to continue in force, which is inconsistent with any provision of the Act; or
Cancelled any rule that ought to be there.

Appeal against cancellation of Registration: [Sec.11]
The aggrieved party or the trade union may appeal to the court within 60 days of such a cancellation order.
Appeal has to be made to:
o The High Court, if the registered office of the trade union lies within the limits of a presidency town;
o The Labour Court or to the Industrial Tribunal, if the registered office of the trade union lies within its limits;
o To such a Court (as appointed by the appropriate government) that is equivalent or superior to the Court of Additional or Assistant Judge of a principal Civil Court, if the registered office is situated in any other area.
The orders of such an appellate court have to be complied with.
The aggrieved party can still resort to the High Court if a Government appointed Court has passed the order.

Rights and privileges of a Registered Trade Union:
Body Corporate [Sec.13]
Separate fund for political purposes: [Sec.16] This fund would be specially constituted for the promotion of the civil and political interest of its members.
Immunity from punishment for criminal conspiracy: [Sec.17]
o This immunity is granted under sec. 120B(2) of the IPC.
o This immunity is in respect of the actions of the members of registered trade unions, taken in the pursuit of their interests on which general funds may be spent.
o Immunity is not available in case of say a strike is accompanied by violence, assault, intimidation, threat etc.
o Similarly, a union leader is not entitled to claim immunity from punishment for breach of discipline.

Immunity from civil suits: [Sec.18]
o Civil suit shall not be maintainable against a registered trade union in respect of:
Act that is done as an indicator of, or as a result of a trade dispute arising out of employment and conditions of employment.
Following arguments against the above action(s) will not be considered:
Convincing employees to break their employment contracts.
Interference with the trade, business, or employment or somebody else.
It is a person’s right to use his capital or his labour in any manner he wishes.
o A registered trade union is not liable in any suit or other legal proceedings in any civil court in respect of any tortuous act done in contemplation of or furtherance of a trade dispute by an agent of the trade union, if it is proved that such person acted without the knowledge of, or contrary to the express instructions given by the executive of the trade union.

Enforceability of agreements: [Sec.19]
o Whatever the laws applicable at the time, an agreement between the members of a registered trade union shall not be void or void able merely by reason of the fact that any of the objects of the agreement is in restraint of trade.

Right to inspect books of trade union: [Sec.20]
o The accounts books, the list of members is to be kept open for inspection by an office bearer or member of the trade union.
o The inspection time will be provided for in the rules of the trade union.

Right of minors to be members: [Sec.21]
o Unless the rules of the trade union mention otherwise, any person who has attained the age of 15 years may be a member of a registered trade union.
o This member will enjoy all the rights of a full-fledged member.

Duties and Liabilities of a Registered Trade Union:

Change of registered office: [Sec.12]
o Any change in the address of the registered office of a trade union takes place; notice of change must be given to the Registrar in writing.
Object on which general funds may be spent: [Sec.15]
o If the union funds are spent on any object other than those enumerated in Sec.15, the expenditure will be considered unlawful and ultra vires the Act and the Union can be restrained by injunction from applying its funds for any such object.
o Some purposes for which this fund may be used:
Payment of salaries, allowances and expenses of the office-bearers;
Administrative expenses and audit expenses;
Expenses for any legal proceeding against the trade union or any member while they were securing or protecting any right of the trade union;
Compensation to members for loss arising out of trade disputes, or even on account of death, old age, sickness, accident or unemployment;
Payment of contributions to any cause intended to benefit workmen in general;
Provision of educational, social or religious benefits for members.
Constitution of a fund for political purposes: [Sec.16]
o This fund may be created by a registered trade union only.
o From this fund, payments may be made for the promotion of the civic and political interests of its members.
o This fund may be utilized for objects like:
Any expenses incurred by a candidate or prospective candidate for election as a member of any legislative body constituted under the constitution of India or of any local authority;
Holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate;
Maintenance of any person who is a member of any legislative body constituted under the constitution of India or of any local authority;
Holding of political meeting of any kind or the distribution of political literature or political documents of any kind.
o Expenditure for political purposes will never be permitted out of the general funds.
o There are certain conditions for the creation of political funds:
Fund to be created only from the contributions separately levied or made to that fund;
No member to be compelled to contribute to this fund;
A member who does not contribute to the fund must not be excluded from any benefits of the trade union;
No ill treatment or unfair treatment of such a member;
Contribution to the political fund not to be made a condition for admission to the trade union.

Miscellaneous Provisions:
Proportion of Office-Bearers to be connected with the Industry: [Sec.22]
o Unorganized Sector:
This sector to be specified by the appropriate government by notification in the official gazette.
Not less than ½ the total number of office-bearers of every registered trade union must be persons engaged or employed in the industry with which the trade union is connected.
But the appropriate government may grant exemptions.
o All other cases:
Not more than 1/3rd of the total number of office-bearers or five (whichever is less) can be outsiders.
o Retired and retrenched employees are considered ‘outsiders’ for this purpose.
o We already know the provision regarding Council of Ministers and other persons who hold offices of profit (not employment) in an establishment or industry with which the trade union is connected.
Disqualifications of the Executive or any other office-bearers of Trade Unions: [Sec.21A]
o Not attained the age of 18 years;
o Convicted by a court in India of an offence involving moral turpitude and sentenced to imprisonment. Five years have not elapsed since his release.

Returns: [Sec.28]
o A registered trade union is required to send annually:
A general statement of all receipts and expenditure, of the assets and liabilities as on 31-Dec.;
A statement showing all changes in office-bearers during the year;
A copy of the up-to-date rules.
A copy of every alteration made in the rules has to be sent to the Registrar within 15 days of making the alteration.
o The Registrar or any of his authorized officers may examine the documents of a registered trade union at its registered office or may require their production at a place to be specified by him.
Such a place should be up to ten miles from the registered office of the trade union.

Penalties: [Sec.31-32]
o In case of a default in sending returns required under the Act:
Every office-bearer or the responsible person(s) is/are punishable with a fine of up to Rs.5/week after the first week of default;
Total fine not to exceed Rs.50/.
o In case of a person making or causing false entry in, or any omission from the general statements or rules sent to the Registrar:
Punishable with a fine of up to Rs.500/.
o In case of a person who, with the intent to deceive, gives false information in the form of a document purporting to be copy of its rules etc. to a person intending to become a member, or
o In case of a person knowingly projecting an unregistered trade union as a registered trade union:
Punishable with a fine of up to Rs.200/.
Regulations: [Sec.29-30]
o The Central and State governments are empowered to make regulations with respect to:
Registration of trade unions, rules of trade unions, fees payable on registration;
Transfer of registration in case of a registered trade union changing its head office from one state to another;
The qualifications of the auditors and the manner in which the accounts of such trade unions are to be audited;
The conditions subject to which inspection of documents kept by the Registrar are to be allowed, and the fees chargeable in respect of such inspection;
Any matter which may be prescribed.
o Regulations so made, shall be published in the Official Gazette of the appropriate government.
Amalgamation of Trade Unions: [Sec.25-26]
o Any two or more registered unions may be amalgamated together as one trade union with or without dissolution of the funds of such trade unions.
o This process will take place only when:
Votes of at least one-half of the members of each trade union entitled to vote, are recorded; and
At least 60% of the recorded votes are in favour of the proposal of amalgamation.
o Notice of amalgamation (in writing), signed by the secretary and by seven members of each and every trade union that is a party to this amalgamation, shall be sent to the Registrars of the individual trade unions.
If the head-office of the amalgamated trade union is situated in a different state, such notice shall be sent to the Registrar of such state also.
If the Registrar of the state in which the registered head-office of the amalgamated trade union is situated, is satisfied that all the necessary formalities are completed, he may register the amalgamated trade union and the amalgamation shall have effect from the date of such registration.
o Effect of amalgamation:
Amalgamation shall not prejudice any right of any such trade unions or any right of a creditor on any of them.

Dissolution of Trade Union:
o When the trade union is dissolved (process to be mentioned in the rules), notice of the dissolution signed by seven members and by the secretary of the trade union shall be sent to the Registrar within 14 days of the dissolution.
o If the Registrar is satisfied that the dissolution has been effected according to the rules of the trade union, he shall register the fact of the dissolution.
o The dissolution shall take effect from the date of such registration.
o Where the dissolution of a registered trade union has been registered and the rules of the trade union do not provide for the distribution of funds of the trade union on dissolution, the Registrar shall divide the funds amongst the members in such manner as may be prescribed.
Assessment of the Act:
This Act can be assessed on the following points:
o Registration of a Trade union is not compulsory and the duties, liabilities are applicable only to registered trade unions.
o Encouragement to formation of small sized unions.
o No time limit to the Registrar for registration.
o Encouragement to persistence of outsiders.
o Light punishment for violations.
o Absence of provision for recognition.
o No mention of unfair labour practices.

Performance appraisal Notes

Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
Performance appraisal may be conducted once in every 6 months or once in a year. The basic idea of the appraisal is to evaluate the performance of the employee, giving him a feed back. Identify areas where improvement is required so that training can be provided. Give incentives and bonus to encourage employees etc.

Method of performance appraisal
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
Companies use different methods of appraisal for identifying and appraising the skills and qualities of their employees. The different methods used can be explained with the help of following diagram.

Methods of performance appraisal

Traditional method Modern method
1. Check list method
2. Confidential report
3. Critical incident method
4. Ranking method
5. Graphic rating scale
6. Narrated essay
7. 360* Appraisal

Traditional method
Traditional method of performance appraisal has been used by companies for very long time. A common feature of these methods is they are all relatively simple and involve appraisal by one senior.

1. Check list method :-
In this method the senior, the boss is given a list of questions about the junior. These questions are followed by check boxes. The superior has to put a tick mark in any one of the boxes
This method can be explained with the following eg.

Y N
Does the employee have leadership qualities?
Y N
Is the employee capable of group efforts?
Y N
Has the employee shown analytical skills?
on the job

As seen in the above eg. A questioner containing questions is given to the senior. This method is an extremely simple method and does not involve a lot of time. The same set of questioners can be given foe every employee so that there is uniformity in selecting employee.

2. Confidential report :-
This method is very popular in government departments to appraise IAS officers and other high level officials. In this method the senior or the boss writes a report about the junior giving him details about the performance about the employee. The +ve and – ve traits, responsibilities handled on the job and recommendations for future incentives or promotions. The report is kept highly confidential and access to the report is limited.

3. Critical incident method :-
In this method critical or important incidents which have taken place on this job are noted down along with employee’s behavior and reaction in all these situations. Both +ve and –ve incidents are mentioned. This is followed by an analysis of the person, his abilities and talent, recommendations for the future incentives and promotions.

4. Ranking method :-
In this method ranks are given to employees based on their performance. There are different methods of ranking employees.

Simple ranking method
Alternate ranking method
Paired comparison method

i. Simple ranking method :-
Simple ranking method refers to ranks in serial order from the best employee eg. If we have to rank 10 best employees we start with the first best employee and give him the first rank this is followed by the 2nd best and so on until all 10 have been given ranks.

ii. Alternate ranking :-
In this method the serial alternates between the best and the worst employee. The best employee is given rank 1 and then we move to the worst employee and give him rank 10 again to 2nd best employee and give him rank 2 and so on.

iii. Paired comparison :-
In this method each and every person is the group, department or team is compared with every other person in the team/group/department. The comparison is made on certain criteria and finally ranks are given. This method is superior because it compares each and every person on certain qualities and provides a ranking on that basis.

5. Graphic rating scale :-
Graphic rating scale refers to using specific factors to appraise people. The entire appraisal is presented in the form of a chart. The chart contains certain columns which indicate qualities which are being appraised and other columns which specify the rank to be given.

Eg. Employee A
Quality of work Quantity of work Intelligence
Excellent
Very good
good
satisfactory
poor

The senior has to put a tick mark for a particular quality along with the ranking. Such charts are prepared for every employee. According to the department in which they work. Sometimes the qualities which are judged may change depending upon the department.

6. Narrated essay :-
In this method the senior or the boss is supposed to write a narrative essay describing the qualities of his junior. He may describe the employees strength and weakness, analytical abilities etc. the narrative essay ends with a recommendation for future promotion or for future incentives.

Modern methods
Modern methods of appraisal are being increasingly used by companies. Now days one of the striving feature that appraisal involves is, the opinion of many people about the employee and in some cases psychological test are used to analyze the ability of employee. These methods are as follows

1. Role analysis :-
In this method of appraisal the person who is being apprised is called the focal point and the members of his group who are appraising him are called role set members.
These role set members identify key result areas (KRA 2 marks) (areas where you want improvement are called KRA) which have to be achieved by the employee. The KRA and their improvement will determine the amount of incentives and benefits which the employee will receive in future. The appraisal depends upon what role set members have to say about the employee.

2. Assessment centers :-
Assessment centers (AC) are places where the employee’s are assessed on certain qualities talents and skills which they possess. This method is used for selection as well as for appraisal. The people who attend assessment centers are given management games, psychological test, puzzles, questioners about different management related situations etc. based on their performance in these test an games appraisal is done.

3. Management by objective :-
This method was given by Petter Druckard in 1974. It was intended to be a method of group decision making. It can be use for performance appraisal also. In this method all members of the of the department starting from the lowest level employee to the highest level employee together discus, fix target goals to be achieved, plan for achieving these goals and work together to achieve them. The seniors in the department get an opportunity to observe their junior- group efforts, communication skills, knowledge levels, interest levels etc. based on this appraisal is done.

4. Behavioral anchored rating scale :-
In this method the appraisal is done to test the attitude of the employee towards his job. Normally people with +ve approach or attitude view and perform their job differently as compared to people with a –ve approach.

5. Psychological testing :-
In this method clinically approved psychological test are conducted to identify and appraise the employee. A feedback is given to the employee and areas of improvement are identified.

6. Human resource audit/accounting :-
In this method the expenditure on the employee is compared with the income received due to the efforts of the employee. A comparison is made to find out the utility of the employee to the organization. The appraisal informs the employee about his contribution to the company and what is expected in future.

7. 360* appraisal :-
In this method of appraisal and all round approach is adopted. Feedback about the employee is taken from the employee himself, his superiors, his juniors, his colleagues, customers he deals with, financial institutions and other people he deals with etc. Based on all these observations an appraisal is made and feedback is given. This is one of the most popular methods.

Process of performance appraisal
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
Process of performance appraisal followed by different companies is different. A general procedure is explained below with the help of a diagram.

Process of performance appraisal
Setting performance standards
Communicating standards set to the employee
Measuring performance
Comparing performance with standard
Discussing result
Collective action
Implementation and review

1. Setting performance standards :-
In this very first step in performance appraisal the HR department decides the standards of performance i.e. they decide what exactly is expected from the employee for each and every job. Sometimes certain marking scheme may be adopted eg. A score 90/100 = excellent performance, a score os 80/100 = good. And so on.

2. Communication standard set to the employee :-
Standards of performance appraisal decided in 1st step are now conveyed to the employee so that the employee will know what is expected from him and will be able to improve his performance.

3. Measuring performance :-
The performance of the employee is now measure by the HR department, different methods can be used to measure performance i.e. traditional and modern method. The method used depends upon the company’s convenience.

4. Comparing performance with standard :-
The performance of the employee is now judged against the standard. To understand the score achieved by him. Accordingly we come to know which category of performance the employee falls into i.e. excellent, very good, good, satisfactory etc.

5. Discussing result :-
The results obtained by the employee after performance appraisal are informed or conveyed to him by the HR department. A feedback is given to the employee asking him to change certain aspects of his performance and improve them.

6. Collective action :-
The employee is given a chance or opportunity to improve himself in the areas specified by the HR department. The HR department constantly receives or keeps a check on the employee’s performance and notes down improvements in performance.

7. Implementation and review :-
The performance appraisal policy is to be implemented on a regular basis. A review must be done from time to time to check whether any change in policy is required. Necessary changes are made from time to time.

Limitations of performance appraisal
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
The following are the limitations of performance appraisal

1. Halo effect :-
In this case the superior appraises the person on certain positive qualities only. The negative traits are not considered. Such an appraisal will no give a true picture about the employee. And in some cases employees who do not deserve promotions may get it.

2. Horn effect :-
In this case only the negative qualities of the employee are considered and based on this appraisal is done. This again will not help the organization because such appraisal may not present a true picture about the employee.

3. Central tendency :-
In this case the superior gives an appraisal by giving central values. This prevents a really talented employee from getting promotions he deserves and some employees who do not deserve any thing may get promotion.

4. Leniency and strictness :-
Some bosses are lenient in grading their employees while some are very strict. Employee who really deserves promotions may loose the opportunity due to strict bosses while those who may not deserve may get benefits due to lenient boss.

5. Spill over effect :-
In this case the employee is judged +vely or –vely by the boss depending upon the past performance. Therefore although the employee may have improved performance, he may still not get the benefit.

6. Fear of loosing subordinates and spoiling relations :-
Many bosses do not wish to spoil their relations with their subordinates. Therefore when they appraise the employee they may end up giving higher grades which are not required. This is a n injustice to really deserving employees.

7. Goodwill and techniques to be used :-
Sometimes a very strict appraisal may affect the goodwill between senior and junior. Similarly when different departments in the same company use different methods of appraisal it becomes very difficult to compare employees.

8. Paper work and personal biased :-
Appraisal involves a lot of paper work. Due to this the work load of HR department increases. Personal bias and prejudice result in bosses favoring certain people and not favoring others.

Advantages/needs/importance/use/purpose of performance appraisal

Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.

1. Feedback to the employee :-
Performance appraisal is beneficial because it provides feedback to the employee about his performance. It identifies the areas for improvement so that employee can improve itself.

2. Training and development :-
Due to performance appraisal it is easy to understand what type of training is required for each employee to improve himself accordingly training programs can be arranged.

3. Helps to decide promotion :-
Performance appraisal provides a report about the employee. Based on this report future promotions are decided, incentives, salary increase is decided.

4. Validation of selection process :-
Through performance appraisal the HR department can identify whether any changes are required in the selection process of the company normally a sound selection process results in better performance and positive appraisal.

5. Deciding transfers and lay off of the worker :-
Employee with specific talent can be transferred to places where their talents are utilized properly; similarly decisions regarding termination of employees depend upon performance appraisal reports.

6. Human resource planning and career development:-
Companies can plan for future vacancies at higher levels based on performance appraisal reports. Similarly career planning can be done for the employee on the performance appraisal report.

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