BBA106_Human Resource Management-converted-converted

Selection interview: Interview is the oral examination of candidates for employment. This is the most essential step in the selection process. In this step the interviewer matches the information obtained about the candidates through various means to the job requirements and to the information obtained through his own observations during the interview. Interview gives the recruiter an opportunity to examine the personality of the candidate. Interview is an art. It demands a positive frame of mind on part of the interviewers. Interviewees must be treated properly so as to leave a good impression about the Company in their minds. Medical Test: Certain jobs require physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard-working conditions, clear tone, etc. Medical examination reveals whether or not a candidate possesses these qualities. Reference checks: Once the interview and medical examination of the candidate is over, the personnel department will engage in checking references. Candidates are required to give 2 or 3 names for references in their application forms. These references may be from the individuals who are familiar with the candidate’s academic achievements or from the applicant’s previous employer, who is well versed with the applicant’s job performance and sometimes from the co-workers. In case the reference check is from the previous employer, information in the areas such as job title, job description, period of employment, pay and allowances, gross emoluments, benefits provided, r ate of absence, candidate’s regularity at work, character, progress, etc can also be obtained. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many Organizations. But a good reference check, when used sincerely, will fetch useful and reliable information to the Organization. Hiring decision: The interviewer has to make the final decision – whether to select or reject a candidate after soliciting the required information through different techniques. A careless decision of rejecting a candidate would impair the morale of the people and they may suspect the selection procedure. SUMMARY • Selection is the process of choosing appropriate candidate from the obtained application to match the requirements of the job. • The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an Organization in the best possible way. • The main objective of selection is to hire people having competence and commitment. • The steps involved in the selection process include: reception, screening interview, application blank, selection test, selection interview, medical test, reference checks, and finally the hiring decision. • Selection tests include intelligence and aptitude tests, achievement tests, assessment centres and general psychological or personality tests. The value of tests should not be discounted, since they are objective and offer a broader sampling of behaviour. 47 CU IDOL SELF LEARNING MATERIAL (SLM)

• Hired candidates are introduced to the job and Organization through induction process. KEY WORDS/ABBREVIATIONS • Application blank: is a method used to collect information on applicants’ academic, social, demographic, work related background and references. • Integrity test: is to measure candidates’ honesty and to predict nature of interviewees or candidates who are more likely to steal from an employer or otherwise act in a manner unacceptable to the Organization • Selection: is the process of choosing appropriate candidate from the obtained application to match the requirements of the job. • Screening interview: is a preliminary interview to cut the cost of selection by allowing only eligible candidates to go through the further stages in selection. • Stress Interview: is the interview in which the interviewers try to ‘discomfort’ the candidates in various ways and observe how they react to various difficult situations. LEARNING ACTIVITY 1. What is meant by Application Blank in selection process? ……………………………………………………………………………………………………… ………………………………………………………………………………………………………. 2. Write three importance of selection? ………………………………………………………………………………………………………… ……………………………………………………………………………………………................... UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. What is meant by selection? Explain in detail the importance of selection. 2. State and discuss the steps involved in the selection process of an incumbent 3. Identify and discuss the objectives of selection. 4. Explain in brief the various selection techniques in general. Outline those selection techniques which are popularly used in India. 5. If you were interviewing a promising candidate but he seemed nervous, what actions might you consider to calm the candidate? 6. What types of tests would you adopt for selecting IT engineers in a technology start-up company? 48 CU IDOL SELF LEARNING MATERIAL (SLM)

B. Multiple Choice Questions 1. The process of choosing the most suitable candidate for a job among the available applicants is called a. Selection b. Recruitment c. Human resource planning d. Job analysis 2. The process of selection starts with a review of the applications. Which of the following steps follows the review of the application? a. Conducting test b. Initial screening interview c. Reference check d. Preliminary interview 3. Which best defines the process of locating and encouraging potential employees to apply for jobs? a. Recruitment b. Human resource planning c. Job analysis d. Training 4. All of the following are sources of internal recruiting except: a. Transfers b. Promotions c. Advertisements d. job posting 5. To give an overview of the organization; To informs Organization Vision / Mission and Objectives statement, its structure and hierarchy; To give an overview of the HR policies and processes and introduction to the Facilities team, IT team and other relevant teams per the location of joining. Following are objectives of: Select the correct option: a. Induction b. Selection c. Recruitment d. Placement 49 CU IDOL SELF LEARNING MATERIAL (SLM)

Answers: 1-a, 2-b, 3-a, 4-c, 5-a. REFERENCES • Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill. • Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India. • Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books. • Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India. • Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill. • Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House. • H.J. Bernardin, Human Resource Management, Tata McGraw Hill, New Delhi, 2004. Ivancevich, J. M. (2008), Human Resource Management, Tata McGraw Hill. • Madhurima Lall and Sakina Qasim Zaidi, Human Resource Management, Excel Books. • Rao P.S. (2008), Essentials of Human Resource Management and Industrial. Relations, Text cases and Games, Himalaya Publication. • www.curryinc.com • https://www.yourarticlelibrary.com • https://open.lib.umn.edu/humanresourcemanagement/chapter/5-1-the-selection-process/ 50 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –6 PLACEMENT AND INDUCTION Structure Learning Objectives Introduction Meaning and objectives Placement Meaning and objectives Induction Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Analyse the meaning of placement & induction • Identify the objectives of placement • Discuss the objectives of induction INTRODUCTION Placement: Placement is the determination of the job for which a selected candidate is best suited and assigning that job to him. The ideal situation is 'the right man for the right job'. A proper placement of a worker reduces employee turnover, absenteeism, accident rates, etc., and improves morale, motivation, work etc. After the initial programme is over, an employee is put to a specific job, for which he has been selected. Most of the organizations put new employees on probation for a specified period after which they are confirmed or made permanent, provided they match the organisational requirements. The personnel department periodically reviews the progress of such employees getting feedbacks on their performance from their controlling authority. Some organisations have also a system to extend the probationary period, if the employees fail to match to the organizational expectations. Such placement is known as 'differential placement'. Placement is defined as assigning employees jobs for which they have been identified as suitable based on the selection techniques. But such definition would be meaningless, if a particular employee is recruited against a particular vacancy. Generally, the question of placement arises when a group of trainees are recruited. Organisations, to identify the true potentiality of an employee, in such cases, make provision for short-term placement, during which phase, employees are allowed to work on 51 CU IDOL SELF LEARNING MATERIAL (SLM)

different jobs, through a systematic job rotation programme. However, at a later stage, permanent placement is affected matching the employees' competence, knowledge, skill and job interest. Induction: Induction is introducing an employee to the job and to the organisation. The primary purpose of induction is to 'sell' the company to the new employee so that he may feel proud of his association with the company. This is called 'orientation' or 'indoctrination'. MEANING AND OBJECTIVES OF PLACEMENT The selection procedure ends with the placement of a worker to the job. Placement is the process of assigning a specific job to each one of the selected candidates. In very simple words placement means sending the newly employed person to some department for work. It also implies assigning a specific rank and responsibility to an individual. Matching the requirements of the job with the qualifications of a candidate is the essence of placement. According to Pigors and Myers “Placement is the determination of the job to which an accepted candidate is to be assigned and his assignment to that job. It is a matching of what the supervisor has reason to think he can do with the job demands. It is a matching of what he imposes (in strain, working conditions etc.) and what he offers (in the form of payroll, companionship with others, promotional possibilities etc.).” Significance of Placement: It is important for both the organization as well as staff that each employee should be placed on a suitable job. While doing so, the factor to be considered is not only the suitability of the job to the individual. But initial placement is always a problem because there is little knowledge about the new employee. Therefore, placement should be done after due considerations of the demands of the job, as well as the social, psychological needs of the individual. An enterprise which has spent a lot of time and money in making a very careful selection may lose due to wrong placement. Right placement of workers can have the following advantages: 1. Reduced labor turnover rate. 2. Reduced absenteeism rate. 3. Increased safety of workers and lower accidents. 4. Increased morale of workers. 5. Better human relations in the organizations. 52 CU IDOL SELF LEARNING MATERIAL (SLM)

Placement is not an easy process. It is very difficult to adjust for a new employee who is quite unknown to the job and the environment. For this reason, the employee is generally put on a probation period ranging from one year to two years. At the end of this probation period, if the employee shows good performance, he is confirmed as a regular employee of the organization. Thus, the probation period or trial period is the transition period at the end of which management takes a decision whether to make the employee regular or discharge him from the job. Placement of New Employees: Placement decisions are generally taken by line executives. It is the supervisor who in consultation with higher levels decides the placement of each employee. The personnel department’s role is to advise the line managers about the human resource policies of the company and to provide counselling to the employees. While taking the placement decision, the following consideration or objectives must be kept in mind: 1. Job Requirements: An employee should be placed on the job according to the requirements of the job such as physical and mental ability, eyesight, hearing, stress etc. The job shouldn’t be adjusted according to the qualification and abilities of the employees. Job placement profile charts can be used to match the worker’s physical and mental abilities with the job requirements. This profile chart displays an evaluation of both job requirements and worker abilities for key features of the job so that the management can easily determine how well worker fits a job. 2. Suitable Qualifications: The job should be offered to only that person who is suitably qualified. Over qualified and under qualified persons might create problems for the organization in the long run. 3. Adequate Information to the Job Incumbent: The employee should be provided with the complete information and facts relating to the job, including the working conditions prevailing in the firm. He should also be made known to the rewards associated with the performance levels. 4. Commitment and Loyalty: 53 CU IDOL SELF LEARNING MATERIAL (SLM)

While placing the new employee, an effort should be made to develop a sense of commitment, loyalty and cooperation in his mind so that he may realize his responsibilities better towards the job, the organization and his associates. 5. Flexibility: The placement in the initial period may be temporary as changes are likely after the completion of training. The employee may be later transferred to the job where he can do better justice. Proper placement helps to improve employee morale. The capacity of the employee can be utilized fully if he is placed on the job for which he is most suitable. Right placement also helps to reduce labour turnover, absenteeism and accident rates. If a candidate adjusts himself to the job and continues to perform as per expectation, it might mean that the candidate is properly placed. MEANING AND OBJECTIVES OF INDUCTION Induction or orientation is the process through which a new employee is introduced to the job and the Organization. In the words of Armstrong, induction is “the process of receiving and welcoming an employee when he first joins a Company and giving him the basic information, he needs to settle down quickly and start work. Good induction training ensures new starters are retained, and then settled quickly and happily into a productive role. New employees also need to understand the Organisation’s mission, goals, values and philosophy; personnel practices, health and safety rules, and of course the job they are required to do, with clear methods, timescales and expectations Induction serves the following objectives: 1. Removes fears: A newcomer steps into an Organization as a stranger. He is new to the people, workplace and work environment. He is not very sure about what is he supposed to do. Induction helps a new employee overcome such fears and perform better on the job. 2. Creates a good impression: Another purpose of induction is to make the newcomer feel at home and develop a sense of pride in the Organization. Induction helps him to: • Adjust and adapt to new demands of the job. • Get along with people. • Get off to a good start. 3. Act as a valuable source of information: Induction serves as a valuable source of information to new recruits. It clarifies many things through employee manuals/handbook. Informal discussions with colleagues may also clear the fog surrounding certain issues. The basic purpose of induction is to communicate specific job requirements to the employees, put them at ease and make them feel confident about their abilities. STEPS IN INDUCTION PROCESS 54 CU IDOL SELF LEARNING MATERIAL (SLM)

The HR department may initiate the following steps while organizing the induction program: ● Welcome to the Organization ● Explain about the Company. ● Show the location, department where the new recruit will work. ● Give the Company’s manual to the newrecruit. ● Provide details about various work groups and the extent of unionism within the Company. ● Give details about pay, benefits, holidays, leave, etc. Emphasize the importance of attendance or punctuality. ● Explain about future training opportunities and career prospects. ● Clarify doubts, by encouraging the employee to come out with questions. ● Take the employee on a guided tour of buildings, facilities, etc. Hand him over to his supervisor (a) Content: The topics covered in employee induction programme may be stated thus in Table 6.1 1. Organizational issues Overview of production process History of company Company policies and rules Names and titles of key executives Disciplinary procedures Employees’ title and department Employees’ handbook Layout of physical facilities Safety steps Probationary period Products/services offered Training avenues 2. Employee benefits Counselling Pay scales, pay days Insurance, medical, recreation, retirement Vacations, holidays Benefits Rest pauses To trainers 3. Introductions To employee counsellor To supervisors To co-workers Overview of jobs 4. Job duties Job objectives Job location Relationship with other jobs Job tasks Job safety needs 55 CU IDOL SELF LEARNING MATERIAL (SLM)

(b) Socialization: Socialisation is a process through which a new recruit begins to understand and accept the values, norms and beliefs held by others in the organisation. HR department representatives help new recruits to “internalise the way things are done in the organization”. Orientation helps the newcomers to interact freely with employees working at various levels and learn behaviours that are acceptable. Through such formal and informal interaction and discussion, newcomers begin to understand how the department/company is run, who holds power and who does not, who is politically active within the department, how to behave in the company, what is expected of them, etc. In short, if the new recruits wish to survive and prosper in their new work home, they must soon come to ‘know the ropes’. Orientation programmes are effective socialisation tools because they help the employees to learn about the job and perform things in a desired way. (c) Follow up: Despite the best efforts of supervisors, certain dark areas may still remain in the orientation programme. New hires may not have understood certain things. The supervisors, while covering a large ground, may have ignored certain important matters. The basic purpose of such follow up orientation is to offer guidance to employees on various general as well as job related matters – without leaving anything to chance. To improve orientation, the company should make a conscious effort to obtain feedback from everyone involved in the programme. There are several ways to get this kind of feedback i. e. through round table discussions with new hires after their first year on the job, through in-depth interviews with randomly selected employees and superiors and through questionnaires SUMMARY • Sometimes a particular person is selected for a given job. Often more than one person may be selected for the jobs of similar nature. In the second case, individual employees have to be put under individual supervisors with the approval of the latter. In the first case also, his approval is also necessary but it should be done early in the selection process. • A proper placement reduces employee turnover, absenteeism and accident ratesand improves morale. • Placement is the actual posting of an employee to a specific job. It involves assigning a specific rank and responsibility to an employee. Placement is an important human resource activity. • Orientation or induction is the task of introducing the new employees to the organisation and its policies, procedures and rules. • Induction is important as it serves the purpose of removing fears, creating a good impression and acts as a valuable source of information. • The primary purpose is to 'sell' the company to the new employee so that he may feel proud of his association with the company. Purpose and Need An employee have to work with fellow employees and his supervisor. For this he must know them, the way they work and also the 56 CU IDOL SELF LEARNING MATERIAL (SLM)

policies and practices of the organisation so that he may integrate himself with the enterprise. Any neglect in the area of, induction and orientation may lead to high labour turnover, confusion, wasted time and expenditure. KEY WORDS/ABBREVIATIONS • Content: The topics covered in employee induction programme are called contents. • Follow-up: It is the process of taking feedback and providing guidance during induction programme. • Induction: Introduction of a person to the job and the organisation. • Induction Programme: The induction programme clarifies the terms and conditions of employment, communicates specific job requirements to the employees and provides confidence in the company as well as in their own ability to accomplish the work assigned to them effectively. • Outplacement: Outplacement services tend to stimulate laid-off workers to pursue retraining opportunities and to relocate. • Employee orientation: The process of introducing new hires to their jobs, co-workers, responsibilities, and workplace. • Employee turnover: Employee turnover is calculated by dividing the number of annual terminations by the average number of employees in a given work force. • Placement: Actual posting of an employee to a specific job – with rank and responsibilities attached to it. • Socialisation: The process through which the new recruit begins to understand and accept the values, norms and beliefs held by others in the organization. LEARNING ACTIVITY 1. What is the purpose of induction? ………………………………………………………………………………………………… ………………………………………………………………………………………………….. 2.What is placement? How is it different for induction? .……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 57 CU IDOL SELF LEARNING MATERIAL (SLM)

1. What is placement? Explain its importance. 2. Discuss the steps to be involved in the induction process. 3. Orientation is required when the selection policy is defective. When employees are selected properly, they do not need to be oriented. Do you agree or disagree? Why? 4. Explain the terms 'placement' and 'induction'. Outline their objectives. 5. What are the components of an employee induction programme? Why it is important in an organization? 6. What benefits do you think can socialisation offer for the (a) new employee (b) organisation? B. Multiple Choice Questions 1. Induction is the process through which a new employee is introduced to the job and the organization. a. True b. False 2. The basic purpose of induction is to communicate specific job requirements to the employees, put them at ease and make them feel confident about their abilities. a. True b. False 3. Induction does not explain about the objectives of a company. a. True b. False 4. Induction does not help an employee to adjust and adapt to the new demands of the job. a. True b. False 5. The main advantage of the induction is that it acts as a valuable source of information a. True b. False Answers: 1-a, 2-a, 3-b, 4-b, 5-a. REFERENCES • Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill. • Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India. • Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books. • Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India. 58 CU IDOL SELF LEARNING MATERIAL (SLM)

• Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill. • Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House. • Madhurima Lall and Sakina Qasim Zaidi, Human Resource Management, Excel Books. • Rao P.S. (2008), Essentials of Human Resource Management and Industrial. Relations, Text cases and Games, Himalaya Publication • www.welcomestart.com/employee-induction-programme.cfm 59 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –7 TRAINING AND DEVELOPMENT Structure Learning Objectives Introduction Meaning of Training and Development Process of Training Training Types Methods of Training and Development. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Explain the meaning of training & development • Describe the process of training and development function • Identify the methods of training and development INTRODUCTION Every organization needs to have well trained and experienced people to perform the activities required to be undertaken. It is necessary to raise the skill levels and increase the versatilities and adaptability of employees to the requirements of an organization in the changing world. Inadequate job performance results in a decline in productivity of changes. Job redesigning or a technological break-through require some type of training and development effort. In a rapidly changing society, training and development is not only an activity that is desirable but also an activity that an organization must commit resources for maintaining a viable and knowledgeable workforce. All types of jobs require some sort of training for efficient performance. Therefore, all the employees, new and old, should be trained or retained. Every new employee regardless of his previous training and experience needs to be introduced to the work-environment of his new Job and taught how to perform specific tasks. Moreover, specific occasions for retraining arise when an employee is transferred or promoted or when jobs change. Training is valuable to the new comer in 60 CU IDOL SELF LEARNING MATERIAL (SLM)

terms of better job security and greater opportunity for advancement. A skill thus, acquired by the new entrant through training is an asset to the organization. MEANING Training comes next to recruitment selection and placement. It normally relates to the job assigned and is in form of guidance/instructions of performing the job safely and efficiently. It is necessary and useful in the case of all categories of operative employees, supervisory staff and managers. Training raises their skills and creates confidence and ability to perform job efficiently. It also facilitates self-development and career development of employees. In fact, the main purpose of training is to develop the human resources within the organisation. Training is the watchword of present dynamic business world. Training is necessary due to technological changes rapidly taking place in the industrial field. New machines, new methods and new techniques are introduced in the production, marketing and other aspects of business. Training is a must for using new machines and new techniques in business management. Training is normally regarded as a short-term process which non-managerial/operative personnel acquire the technical knowledge and skills for efficient conduct of jobs assigned. It leads to efficient and skilled behaviour of employees. Such training is necessary for rising overall efficient of an organisation and also for achieving organisation objectives. Development focuses upon the activities that an organization employing the individual, or that the individual is part of, may partake in the future, and is almost impossible to evaluate. Typical roles in the field include executive and supervisory/management development, new- employee orientation, professional-skills training, technical/job training, customer-service training, sales-and-marketing training, and health-and-safety training. Job titles may include vice- president of organizational effectiveness, training manager or director, management development specialist, blended-learning designer, training-needs analyst, chief learning officer, and individual career-development advisor. Talent development is the process of changing an organization, its employees, its stakeholders, and groups of people within it, using planned and unplanned learning, in order to achieve and maintain a competitive advantage for the organization. Rothwell notes that the name may well be a term in search of a meaning, like so much in management, and suggests that it be thought of as selective attention paid to the top 10% of employees, either by potential or performance. PROCESS OF CONDUCTING TRAINING PROGRAMME: Training programme needs to be prepared and as per the specific needs if the organisation. Secondly, training process/ programme needs to be implemented in an orderly manner, failing which the net result of training will not be positive/ effective. Training process is lengthy and time consuming. It starts with the identification of are actually verified though evaluation technique. The steps involved in the training process/programme are as noted in the chart given below: 61 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Identifying Training Needs: Discovering/identifying the training needs of an organisation is the first step in the systematic training process/programme. All training activities should be related to the specific needs of the organisation and also of the individual employees. The training should start after careful assessment of the training needs, failing which training process will be misdirected and positive benefits will not be available. The effectiveness of a training process can judge only with the help of training needs identified in advance. For the identification of training needs, the gap between the existing level knowledge, skills, performance and aptitudes of employees and the required levels of knowledge, skills, performance and aptitudes should clearly specified. The program areas that can be resolved through training process should also be clearly identified. Here, “the trouble spots” are to be noted where training may be needed. It should be noted that training is not cure-all technique. Training needs can be identified clearly through the following types of analysis: a) Organisation Analysis, b) Operations Analysis, and c) Manpower Analysis Organisation analysis relates to the determination of the organization’s goals, its resources and the allocation as they relate to the organizational goals. The analysis (detailed study) of the organizational goals established the framework within which training needs can be defined more clearly. The purpose of organizational analysis is to determine where training emphasis should be placed within the organization. The scope of organizational analysis is wide and includes: 1. Analysis of objectives, 2. Recourses utilization analysis, 3. Organization climate analysis, 4. Environmental scanning. Operations Analysis focuses attention on the task or job regardless of the employee doing the job. This type of analysis includes the determination with which the worker must perform the job and the specific worker behaviour required in order to identify job perform the job effectively. The jobs are also analysed in order to identify job contents, knowledge, skills, performance and aptitudes required and the work behaviour. As regards the job holder, particular attention should be paid to the tasks to be performed, the methods to be used and the performance standards required of employees. The purpose of operations analysis is to decide what should be taught to employees for promising results. Manpower analysis reviews the knowledge, attitudes and skills of the worker in each position and determines what knowledge, attitudes/skills he must acquire and what adjustments/alterations in his behaviour he must introduce if he is to contribute substantially to the attainment of organizational objectives. Thus, in this analysis, the employees to be trained and the changes required in the knowledge, skills and attitudes of an employee are determined for giving training. 62 CU IDOL SELF LEARNING MATERIAL (SLM)

Training can be effective (relevant and viable) if the three types of analysis (noted above) are carried on continuously. In addition, the conclusions from this analysis should be integrated in a properly designed and executed training programme. 2. Setting Training Objectives and Policy: After deciding the training needs, the next logical step in the training process is to set training and development objectives in concrete terms. In fact, without clearly set objectives/goals, it is not possible to design a well-planned training programme which is to be executed and also evaluated for judging its effectiveness. Training objectives decided should be tangible, verified and measurable. Some objectives (e.g. skills) are tangible while some others (e.g. behavioural objectives) are different to state precisely. The overall training objective is to fill in the gap between the existing and the desired pool of knowledge, skills and aptitudes. Defining training objectives in quantitative and qualitative terms is useful for designing, executing and also for evaluation of the training programme. Important objectives of training are as noted below: a) To impart basic knowledge and skills required for performing jobs efficiently in the case of new entrants. b) To assist employees to function more effectively in their present jobs by providing them the latest concepts, information and techniques and by developing skills which they need in their areas of work/activity. c) To build up a second line of capable, trustworthy and competent officers and make them ready to occupy more responsible positions as and whenrequired. d) To broaden the minds of senior managers through exchange of views, information and experience (within and outside) so as to correct their narrow outlook developed due to over specialization. Such broadminded and matured managers give proper tone to the entire organisation and raise its productivity. 3. Designing Training Policy/Programme: After finalizing the objectives of training, the next step in the training process/programme is designing of training programme which acts as a base of actual training to employees. For achieving training objectives, an appropriate training is absolutely essential. This policy represents the commitment of top management to employee training and development. Training policy involves rules and procedure relating to training activity. Such policy indicates the following: a) Training policy indicates company’s honest intention to train and develop its employees. b) It guides the design and execution of training programmes. c) It identifies the critical areas where training is to be provided on priority basis for achieving the objectives. d) It provides appropriate opportunities to employees for their self-improvement and development. 63 CU IDOL SELF LEARNING MATERIAL (SLM)

Designing training programme becomes easy, once training objectives and training policy are clearly decided. 4. Preparing the Learner: The learner is made to feel at home. He must not feel nervous at the training centre. Relevant introduction about the training is provided. Training is linked with his nature of job. In order to install confidence, the learner may be asked to say few words about what he already knows about the job. Presenting operations and knowledge: The success of training programme largely depends on the trainer’s ability to tell, show, illustrate and question by practice across of new knowledge and operations. The trainee should be made familiar with the sequence of the entire job. The important components of the job should be explained one by one. Audio-visual aids can be profitably used to make the learning process easier for trainees. Questions should be encouraged from the trainees. This will indicate the level of understanding of the trainees. Oral or written tests can be conducted to determine success of training programme. The trainer is given free hand to find out whether the trainees have learned whatever has been imparted them. 5. Implementing/Executing the Training Programme: After designing the training programme, the same is to be implementing as per the details decided. This means actual imparting training to trainees. Programme implementing involves concrete action on the following points: a) Organizing training and other facilities and deciding the location of training where training activity is to be arranged. b) Arranging the schedule of training programme which will make training effective and also offer convenience to participants and trainers. c) Conducting training programme as per the designed prepared. d) Monitoring the process of the training programme/process as well as the progress of trainees. Active participation of trainees in the training programme is a must. However, many managers are not willing to participate actively in the training programme. Suitable academic background is also necessary in the case in the case of trainees. 6. Follow-up and Evaluation of Training Process/Programme: This is the last step in the training process/programme. Here, the training programme is already complete and the trainees go back, to their departments or positions and start doing their work assigned. However, the management feels that training/development is a means not the end in itself. Training is essentially for achieving certain objectives. Management will like to know actual results/benefits of training. For this, follow-up of training in the form of evaluation of training is essential. Management spent huge money on training of employees and this expenditure should give positive return in terms of higher efficiency, productivity, high morale, cordial industrial 64 CU IDOL SELF LEARNING MATERIAL (SLM)

relations and so on. For this, critical evaluation of training programme is essential. This indicates the effectiveness of training. TRAINING TYPES Employees training include the following types: • Induction/Orientation. • Job Training. • Training for Promotion. • Refresher Training. • Corrective Training. • Training for Operative staff and Managers. Every type of training has specific purpose. For example, induction training is for proper introduction of the organisation to newly appointed employees (operative staff and managers) while job training is for developing skills required for performing specific job assigned. Refresher training is for refreshing the professional skills and experience of managers while corrective training is for changing the behaviour and outlook of employees. Here, the employee is motivated to improve/correct his behaviour. Finally, training is given to lower level employees (operative staff) and also to managers. This training is for improving their efficiency in the work assigned. Every type of training has its special features and benefits. Companies provide training to their employees for their self-development and also for the benefit of the organisation. METHODS OF TRAINING There are a number of methods through which the trainees are trained. The methods normally used for training of operative and supervisory personnel are classified into “on the job” and “off-the-job” training methods. A. On the Job Training Methods The worker by these methods learns to master the operations involved, on the actual job situation, under the supervision of his immediate boss who undertakes the responsibility of conducting training. On-the-job training has the advantage of giving first-hand knowledge and experience under the actual working conditions. The emphasis is placed on rendering services in the most effective manner rather than learning how to perform the job. 1) On Specific Job: The most common or formal on-the-job training programme is training for a specific job. Current practice in job training was first designed to improve the job performance through job instruction. On-the-job training is conducted through: a) Experience: This is the oldest method of on-the-job training. But as an exclusive approach, it is wasteful, time consuming and inefficient. It has been observed that it should be followed by other 65 CU IDOL SELF LEARNING MATERIAL (SLM)

training methods to make it more effective. On the-job problem-solving and colleague interactions were prompted as most important for professional growth. b) Coaching: On-the-job coaching by a superior is an important and potentially effective approach, if superior is properly trained and oriented. The supervisor provides feed-back to the trainee on his performance and offers him some suggestions for improvement. Often the trainee shares his thoughts, views and apprehensions about the duties and responsibilities with the boss and thus gets relief and relieves him of his burden. A limitation of this method of training is that the trainee may not have the freedom of opportunity to express his own ideas because the trainer happens to be his immediate boss. c) Understudy: The understudy method is considered a somewhat different approach from those described above, that a certain person is specifically designated as the heir-apparent. The understudy method makes the trainee an assistant to the current job holder. The trainee learns by experience, observation and imitation of the style of the person he asked to work with. The trainee is informed about the policies, methods, techniques etc. The advantage of this method is that training is conducted in a practical and realistic situation. 2) Position Rotation: The major objective of job rotation is the broadening of the background of trainee in the organisations. This type of training involves the movement of the trainee from one job to another. The trainee receives the job knowledge and gains experience from his supervisor or trainer in each of the different job assignments. This method gives an opportunity to the trainee to understand the operational dynamics of a variety of jobs. There are certain disadvantages of this method. The productive work can suffer because of the obvious disruption caused by such changes. Rotations become less useful as specialisation proceeds, for few people have the breadth of technical knowledge and skills to move from one functional area to another. 3) Special Projects: This is a very flexible training device. Such special project assignments grow ordinarily out of an individual analysis of weaknesses. The trainee may be asked to perform special assignment; thereby he learns the work procedure. Trainees not only acquire knowledge about the assignment activities, but also learn how to work with others. 4) Selective Readings: Individuals in the organisation can gather and advance their knowledge and background through selective reading. The readings may include professional journals and books. Various business organisations maintain libraries for their staff. Many executives become members of professional associations and they exchange their ideas with others. This is a good method of assimilating knowledge. However, some executives claim that it is very difficult to find time to do much reading other than absolutely required in the performance oftheir jobs. 5) Apprenticeship: Apprentice training can be traced back to medieval times when those intended of learning trade skill bound themselves to a master craftsman to learn by doing the work under his guidance. In earlier periods, apprenticeship was not restricted to ascertains, but was used in training for the professions including medicine, law, dentistry, teaching, etc. Today’s industrial organisations require large number of skilled craftsmen who can be trained by this system. Such training is either provided by the organisation or it is imparted by governmental agencies. Most states now have 66 CU IDOL SELF LEARNING MATERIAL (SLM)

apprenticeship laws with supervised plans. Such training arrangements usually provide a mixed programme of classroom and job experience. 6) Vestibule Schools: Large organisations are frequently provided with what is described as vestibule schools, a preliminary to actual shop experience. As far as possible, shop conditions are duplicated, under the close watch of the instructors. Vestibule schools are widely used in training for clerical and office jobs as well as for factory production jobs. Such training is through shorter and less complex but is relatively expensive. However, the costs are justified if the volume of training is large and high-standard results are achieved. B. Off-the-job Training Methods In these methods, trainees have to leave their work-place and devote their entire time to the development objective. In these methods development of trainees is primarily and any usable work produced during training is secondary. Since the trainee is not instructed by job requirements, he can place his entire concentration on learning the job rather than spending his time in performing it. There is an opportunity for freedom of expression for the trainees. Off-the-job training methods are as follows: 1) Special Course and Lectures: Lecturing is the most traditional form of formal training method. Special courses and lecturers can be organised by organisations in numerous ways as part of their development programmes. First, there are courses which the organisations themselves establish to be taught by members of the organisations. Some organisations have regular instructors assigned to their training and development departments. A second approach to special courses and lecturers is for organisations to work with universities or institutes in establishing a course or series of courses to be taught by instructors of these institutions. A third approach is for the organisations to send personnel to programmes organised by the universities, institutes and other bodies. Such courses are organised for a short period ranging from 2-3 days to a few weeks. 2) Conferences: This is an old but still a favourite training method. In order to escape the limitations of straight lecturing many organisations have adopted guided-discussion type of conferences in their training programmes. In this method, the participants pool their ideas and experiences in attempting to arrive at improved methods of dealing with the problems, which are common subject of discussion. Conferences may include buzz sessions that divide conferences into small groups of four or five for intensive discussion. These small groups then report back to the whole conference with their conclusions or questions. 3) Case Studies: This technique, which has been developed and popularised by the Harvard Business School, USA is one of the most common forms of training. A case is written account of trained reporter or analyst seeking to describe an actual situation. Cases are widely used in a variety of programmes. This method increases the trainee’s power of observation, helping him to ask better questions and to look for a broader range of problems. A well-chosen case may promote 67 CU IDOL SELF LEARNING MATERIAL (SLM)

objective discussion, but the lack of emotional involvement may make it difficult to effect any basic change in the behaviour and attitude of trainees. 4) Brainstorming: This is the method of stimulating trainees to creative thinking: this approach developed by Alex Osborn seeks to reduce inhibiting forces by providing for a maximum of group participation and a minimum of criticism. A problem is posed and ideas are sought. Quantity rather than quality is the primary objective. Ideas are encouraged and criticism of any idea is discouraged. Chain reaction from idea to idea is often developed. Later, these ideas are critically examined. There is no trainer in brainstorming. Brainstorming frankly favours divergence, and this fact may be sufficient to explain why brainstorming is so little used yet in developing countries where new solutions ought to carry the highest premium. It is virtually untried even though its immediate use is limited to new ideas only, not change in behaviour. 5) Laboratory Training: Laboratory training adds to conventional training by providing situations, which the trainees themselves experience through their own interaction. In this way, they more or less experiment the conditions on themselves. Laboratory training is more concerned about changing individual behaviour and attitude. It is generally more successful in changing job performance than conventional training methods. There are two methods of laboratory training namely simulation and sensitivity training as explainedunder: a) Simulation: An increasingly popular technique of management development is simulation of performance. In this method, instead of taking participants into the field there can be simulated in the training session itself. Simulation is the presentation of real situation of organisations in the training session. It covers situations of varying complexities and roles for the participants. It creates a whole field organisation, relates participants through key roles in it, and asks them deal with specific situations of a kind they encounter in real life. There are two common simulation methods of training: role-playing is one and business game is the other. i) Role-playing: Role-playing is a laboratory method, which can be used rather easily as a supplement to conventional training methods. Its purpose is to increase the trainees’ skill in dealing with other people. One of its greatest uses is in connection with human relations training but it is also used in sales training as well. It is spontaneous acting of realistic situation involving two or more persons under classroom situations. Dialogue spontaneously grows out of the situation, as it is developed by the trainees as singed to it. Other trainees in the group serve as observers or critics. Since people take role every day, they are somewhat experienced in the art, and with a certain amount of imagination, they can project themselves into roles other than their own. By this method, a trainee can broaden his experience by trying different approaches. Role- playing also has weaknesses which partly offset its values. It is time consuming and expensive. It requires experienced trainers because it can easily turn sour without effective direction. Nevertheless, these weaknesses do not undermine the strengths of this method. 68 CU IDOL SELF LEARNING MATERIAL (SLM)

ii) Gaming: Gaming has been devised to simulate the problems of running a company or even a particular department. It has been used for a variety of training objectives, from investment strategy, collective bargaining techniques, to the morale of clerical personnel. It has been used at all levels from the top executives to the production supervisors. Gaming is a laboratory method in which role-playing exists but its difference is that it forces attention on administrative problems, while role-playing tends to emphasise mostly on interaction. Gaming involves several teams each of which is given a firm to operate for a specified period. Usually, the period is a short one, say one year or so. In each period, each team makes decisions on various matters such as fixation of price, level of production, inventory level, and so forth. Since each team is competing with others, each firm’s decisions will affect the results of all others. All the firm decisions are fed into a computer, which is programmed to behave somewhat like a real market. The computer provides the results and the winner is the team which has accumulated largest profit. In the light of such results, strengths and weaknesses of decisions are analysed. b) Sensitivity Training: It is the most controversial laboratory training method. Many of its advocates have an almost religious zeal in their enhancement with the training group experience. Some of its critics match this fervour in their attacks on the technique. As a result of criticism and experience, a somewhat revised approach, often described as “team development” training, has appeared. It was first used by National Training Laboratories at Bethal, USA. The training groups are called T-group. Sensitivity training is a small-group interaction under stress in an unstructured encounter group which requires people to become sensitive to one another’s feeling in order to develop reasonable group activity. T-Group has several characteristic features: (i) T-group is generally, small, from ten to twenty members; (ii) the group begins its activity with no formal agenda; (iii) the role of trainer is primarily to call attention from time to time to the on-going process within the group; and (iv) the procedure tends to develop introspection and self- examination, with emotional levels of involvement. The objectives of such training are concern for others, increased tolerance for individual differences, less ethnic prejudice, understanding of a group process, enhanced listening skills, increased trust and support. 6) Programmed Instruction: This method has become popular in recent years. The subject matter to be learned is presented in a series of carefully planned sequential units. These units are arranged from simple to more complex levels of instruction. The trainee goes through these units by answering questions or filling the blanks. This method is, thus, expensive and time-consuming. 7) E-learning: It allows trainees to improve their skills and knowledge at their own comfortable pace. The trainee participates actively and is able to upgrade skills in a timebound manner. Of course, e-training requires top management support, uninterrupted internet access, investments in establishing learning portals and is not suitable for imparting behavioural skills to trainees. Technology barriers like bandwidth will restrict and hamper the effectiveness of e-learning. Learning effectiveness might never match the level of classroom for a long time. 69 CU IDOL SELF LEARNING MATERIAL (SLM)

8) Behaviourally Experienced Training: Some training programmes focus on emotional and behavioural learning. Here employees can learn about behaviour by role playing in which the role players attempt to act their part in respect of a case, as they would behave in a real-life situation. Business games, cases, incidents, group discussions and short assignments are also used in behaviourally-experienced learning methods. Sensitivity training or laboratory training is an example of a method used for emotional learning. The focus of experiential methods is on achieving, through group processes, a better understanding of oneself and others. SUMMARY • The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. • It forms the core of apprenticeships and provides the backbone of content at institutes of technology. • The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. • In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. Training and development are a subsystem of an organization. • The various types of training include: skills training, refresher training, cross functional training, team training, creativity training, diversity training, and literacy training. • Formal training methods include (i) on-the-job training covering job instruction training, coaching, mentoring, job rotation, apprenticeship training, committee assignments and (ii) off-the-job training includes lectures, conferences, simulation exercises and programmed instruction. • It ensures that randomness is reduced and learning or behavioural change takes place in structured format. • Employees frequently develop a greater sense of self-worth, dignity and well-being as they become more valuable to the firm and to society. • Generally, they will receive a greater share of the material gains that result from their increased productivity. These factors give them a sense of satisfaction through the achievement of personal and company goals. KEY WORDS/ABBREVIATIONS • Education: Knowledge attainment which develops or progresses, both as an inadvertent virtue and as part of deliberate policy is understood as education. Education is more than information sharing and imparting. It implies approximation to truth in the specific area of learning. 70 CU IDOL SELF LEARNING MATERIAL (SLM)

• Learning: A process by which experience or practice results in a relatively permanent change in behavior, or potential behavior • Mentor: A person who is higher up the organization and who can provide career advice and support to a less senior employee. • On-the-job Training: Any training technique that involves allowing the person to learn the job by actually performing it on the job. • Professional competencies: The capability to perform the duties of one’s profession in general, or, to perform a particular professional task with skills of an acceptable quality. • Role Playing: A development technique requiring the trainee to assume a role in a given situation and act out behaviors associated with that role. • Training: The acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. • Training Needs Assessment: A tool has to identify needs and gaps in the ability of employees in order to deliver desired results to an organization. The results suggest which training courses or activities could be provided to improve their skills and work productivity. The focus is on needs as opposed to desires. • Vestibule Training: A training method involving the creation of training facilities separate from the regular production area but with the same equipment. LEARNING ACTIVITY 1. ‘Motivation is basic to good training’ Explain. ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… 2 Critically evaluate the Indian system of training ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. Define the term training. Explain the methods of training. 2. Discuss various types of training. What precautions should one take for conducting a training programme? 3. State and explain the process of training. 4. How do you identify the training needs of an organisation? 5. Human Resource Development is nothing but looking at the development of manpower of an organisation in the light of its requirements. Justify your answer. 71 CU IDOL SELF LEARNING MATERIAL (SLM)

6. B. Multiple Choice Questions 1. Which of the following is not true about training? a. It is a short-duration exercise. b. It is technical in nature. c. It is primarily for managers and executives. d. It is concerned with specific job skills. 2. In which type of analysis are corporate goals and plans compared with the existing manpower inventory to determine the trainingneeds? a. Organization analysis b. Operation analysis c. Individual analysis d. None of the above 3. Training need analysis takes place during which phase of the training process? a. deciding what to teach b. deciding how to maximize participant learning c. choosing appropriate instructional methods d. determining whether training programmes are effective 4. seeks to examine the goals of the organisation and the trends that are likely to affect these goals. a. Organisational Support b. Organisational analysis c. Person analysis d. Key skill abilities analysis 5. The training of employees while performing job is called a. on the job training b. off the job training c. job instruction training d. None of the above Answers: 1-c, 2-a, 3-a, 4-b, 5-a. 72 CU IDOL SELF LEARNING MATERIAL (SLM)

REFERENCES • Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill. • Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India. • Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books. • Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India. • Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill. • Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House. • Dipak Kumar Bhattacharyya, Human Resource Management, Excel Books. • Madhurima Lall and Sakina Qasim Zaidi, Human Resource Management, Excel Books. • Rao P.S. (2008), Essentials of Human Resource Management and Industrial. Relations, Text cases and Games, Himalaya Publication. • Hansra, B S and Kumar B. (1997), Training Methodology for Human Resource Development. Classical Publishing Company, New Delhi. • Lynton, R P and Pareek U. (1990), Training for Development, Vistaar Publications, New Delhi. • Lynton, R P and Pareek U. (2000), Training for organizational transformation (Part-2), Sage Publications, New Delhi. • http://en.wikipedia.org/wiki/Training_and_development • http://www.businessballs.com/traindev.htm • http://www.eurojournals.com/ejsr_24_3_01.pdf 73 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –8 PERFORMANCE APPRAISAL Structure Learning Objectives Introduction Meaning Importance Process of performance appraisal Methods of performance appraisal Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • State the meaning of performance appraisal. • Identify importance of performance appraisal • Describe the process of performance appraisal. • Explain the methods of performance appraisal. INTRODUCTION In the organization context performance appraisal is an evaluation of personnel in a systematic way by superiors or others familiar with their performance. It is also described as merit rating in which one individual is ranked as better or worse in comparison to others. The basic purpose in this merit rating is to determine an employee’s eligibility for promotion. However, performance appraisal is a broad term and it may be used to ascertain the need for training and devel opment, salary increase, transfer, discharge, etc. besides promotion. In simple terms, performance appraisal may be understood as the review of an individual’s performance in an orderly way, the performance is measured by considering factors like job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health, and the like. Evaluation should not be restricted to past performance alone but, the future performances of the employee should also be assessed. 74 CU IDOL SELF LEARNING MATERIAL (SLM)

MEANING OF PERFORMANCE APPRAISAL According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job.” In the words of Yoder, “Performance appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members.” Thus, performance appraisal is a formal programme in an organization which is concerned with not only the contributions of the members who form part of the organization, but also aims at spotting the potential of the people.” Performance appraisal is a systematic and orderly evaluation of performance of employees of at work by their superiors or others who are familiar with the techniques of performance appraisal. Such appraisal relates quantitative and quantitative aspects of job performance. Performance is to be measured in terms of results and not in terms of efforts. Performance appraisal is one of the oldest and universal practices of management. Such appraisal is common in the case of blue collared employees as well as white collared employees (e.g. Bank employees, government servants, etc.). Performance appraisal indicates the position of an individual employee in relation to job expectations. Performance appraisal is widely used practice in society. It is used universally in different aspects of life. Teachers evaluate their students and even teachers are evaluated by their students. In the industrial sector, employers/managements evaluate the performance of their employees periodically for different purposes. Well-developed techniques are now used for performance evaluation/appraisal of technical, managerial and professional personnel. Performance appraisal is possible by using different methods. It offers many benefits to managements and employees. Performance appraisal is a lengthy process and needs to be completed properly. The process of performance appraisal helps the management and employee to know the level of employee’s performance as compared to expected or standard performance. Performance appraisal acts as the basis HRD as its facilities improvement in actual performance of employees through training and development programmes. IMPORTANCE It is said that performance appraisal is an investment for the Company which can be justified by following significances: 1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In these regards, inefficient workers can be penalized. 75 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal triesto give worth to a performance. Compensation packages which include bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. 3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. 4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors realize the strengths and weaknesses of selection procedure. Improvement in selection methods can be made in this regard. 5. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This motivates a person for better job and helps him to improve his performance in the future PROCESS OF PERFORMANCE APPRAISAL There are six steps in the process of performance appraisal which are as follow: 76 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig.8.1: Steps in the performance appraisal process Let us learn these steps in detail. • Establishing Performance Standards: The first step in the process of performance appraisal is the setting up of the standards which will be used to compare the actual performance of the employees against the standards set. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the Organizational goals and objectives. The standards set should be clear, easily understandable and measurable. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. • Communicating the Standards: Once performance standards are set; it is the responsibility of the management to communicate the standards to all the employees of the Organization. The employees should be informed and the standards should be clearly explained to the employees. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. • Measuring the Actual Performance: The most difficult part of the Performance appraisal process is measuring the actual performance of the employees, that is, the work done by the employees during the specified period of time. It is a continuous process which involves 77 CU IDOL SELF LEARNING MATERIAL (SLM)

monitoring the performance throughout the year. This stage requires careful selection of appropriate techniques of measurement. It should be taken care that personal bias does not affect the outcome of the process. • Comparing the Actual with the Desired Performance: The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance. On the other hand, the actual performance may be less than the desired performance depicting a negative deviation in the Organizational performance. This step includes recalling, evaluating and analysis of data related to the employees’ performance. • Discussing Results: The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. • Decision Making: The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. METHODS OF PERFORMANCE APPRAISAL So far, we have discussed the concept, objectives and significance of performance appraisal. Let us now discuss the methods of performance appraisal under two popular approaches that are available for performance appraisal. These are Traditional approach and Modern approach Traditional Approach This approach has been used as just a method for determining and justifying the salaries of the employees. It has been used as a tool for determining rewards and punishments for the past performance of the employees. This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the Organization as a whole by the past performances of its employees. Therefore, it is also called as the overall approach. The following are some of the traditional performance appraisal methods that Organizations may follow: 1. Essay Appraisal Method: This traditional form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his/ her superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and 78 CU IDOL SELF LEARNING MATERIAL (SLM)

evidences to support the information. A major drawback of the method is that it may suffer from the bias of the evaluator. 2. Straight Ranking Method: This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. 3. Paired Comparison Method: In this method, comparison is made on each employee with all others in the group. On the basis of the overall comparisons, the employees are given the final rankings. 4. Critical Incidents Methods: In this method, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur. 5. Field Review Method: In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time-consuming method. This method helps to reduce the superiors’ personal bias. 6. Checklist Method: The rater is given a checklist of the descriptions of the behavior of the employees on the job. The checklist contains a list of statements on the basis of which the rater describes the job performance of the employees. 7. Graphical Rating Scale Method: In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example, a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory. 8. Rating Scales Method: Rating scales consists of several numerical scales representing job related performance criterion such as dependability, initiative, output, attendance, attitude, etc. Each scale ranges from excellent to poor. The total numerical score is compared and final conclusions are derived. Advantages of rating scales are: adaptability, ease to use, low cost, every type of job can be evaluated and final conclusions can be derived, no formal training is required. However, rater’s bias is considered as the major disadvantage of this method. Modern Approach The modern approach to performance development has made the performance appraisal process more formal and structured. It includes a feedback-process that helps to strengthen the relationships between superiors and subordinates and improve communication throughout the Organization. It is a 79 CU IDOL SELF LEARNING MATERIAL (SLM)

future oriented approach and is developmental in nature. This recognizes employees as individual and focuses on their development. The following are some of the modern performance appraisal methods that Organizations may follow: 1. Assessment Centre’s: An assessment entre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees, to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. Assessment centers are also an effective way to determine the training and development needs of the targeted employees. 2. Human Resource Accounting Method: Human resources are valuable assets for every Organization. Human resource accounting method tries to find the relative worth of these assets in terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees includes all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc. whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them 3. Management by Objectives (MBO): MBO can be described a process whereby the employees and the superiors come together to identify common goals. The employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. 4. Balance Score Card: The Balanced scorecard – an approach given by Kaplan and Norton provides a framework of various measures to ensure the complete and balanced view of the performance of the employees. Balanced scorecard focuses on the measures that drive performance. The balanced scorecard provides a list of measures that balance the Organizations internal and process measures with results, achievements and financial measures. 5. 360 Degree Feedback Appraisal: It is also known as ‘multi-rater feedback’, is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. 360-degree respondents for an employee 80 CU IDOL SELF LEARNING MATERIAL (SLM)

can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors. Anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance. The 360-degree appraisal has four integral components: Self appraisal, Superior’s appraisal, Subordinates’ appraisal and peer’s appraisal. Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360-degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. The correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others. SUMMARY Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. It also assesses the potential of candidates for further development. The main objective of the performance appraisal is to reward those who are working efficiently and honestly in the Organization. At the same time, it also aims at eliminating those who are inefficient and unfit to carry out their responsibilities. The system of performance appraisal is useful to the Organizations not only to identify and rate employees on performance levels but also to allocate human resources optimally and efficiently and develop the desired competencies in them. An Organization comes across various problems and challenges of performance appraisal in order to make a performance appraisal system effective and successful. There are six steps in the process of performance appraisal which are: Establishing Performance Standards, Communicating the Standards, Measuring the Actual Performance, Comparing the Actual with the Desired Performance, Discussing Results and Decision Making. Methods of performance appraisal have been discussed under traditional approach and modern approach. Methods under traditional approach are: Essay Appraisal Method, Straight Ranking Method, Paired Comparison Method, Critical Incidents Methods, Field Review Method, Checklist Method, Graphical Rating Scale Method, and Rating Scales Method. Methods under modern approach are: Assessment Centers, Human Resource Accounting Method, Management by Objectives (MBO), Balance Score Card and 360 Degree Feedback Appraisal. KEY WORDS/ABBREVIATIONS • Peers are persons or colleagues who have equal standing with another or others in terms of rank, designation or age. 81 CU IDOL SELF LEARNING MATERIAL (SLM)

• Ranking is a relationship between a set of items such that, for any two items, the first is either ‘ranked higher than’, ‘ranked lower than’ or ‘ranked equal to’ the second. • Rating is a systematic estimation of the degree of some attribute based on a numerical or descriptive continuum. • Assessment center is a comprehensive standardized procedure in which multiple assessment techniques are used to evaluate individual employee for variety of manpower decisions. • Balance score card measures employee performance by making balance with Organization internal processes and measures the results achieved. MBO Involves setting specific measurable goals with each employee and then periodically reviewing the progress made. LEARNING ACTIVITY 1. Why does current thinking indicate that appraisal for training should be conducted separately from appraisal for promotion? ……………………………………………………………………………………………………….… ……………………………………………………………………………………………..................... 2. Do you think that continuous performance monitoring increases the employee productivity or vice versa? ……………………………………………………………………………………………………….… ……………………………………………………………………………………………..................... UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Question 1. What is performance appraisal? Being an HR manager how would you develop a performance plan. 2. Describe in detail the process of performance appraisal. 3. \"Some of the so-called modern industries still follow traditional techniques of performance appraisal\". Justify with valid reasons 4. List down methods of appraisal? Which method would you prefer as a manager of firm? Why? 5. Evaluate the significance of performance appraisal in an organization. How would you make it more effective? B. Multiple Choice Questions 1) Aligning and evaluating the employee's performance with that of company's set goals is called a. appraisal management b. performance management 82 CU IDOL SELF LEARNING MATERIAL (SLM)

c. hierarchy of management d. off-the-job training 2) When the ratings are collected from supervisors, customers and peers it is called a. 350-degree feedback b. 320-degree feedback c. 360-degree feedback d. 380-degree feedback 3) Performance management should be seen as a process which is a: a. Once a year task b. Twice a year activity c. On-going process or cycle d. Is engaged in when the appraisals are carried out 4) A performance rating system is: a. A grade or score relating to overall performance b. Details of the extent to which work objectives were met c. Last year’s objectives d. Achievements during the year 5) Performance Appraisal is defined as product of ability & motivation. a. TRUE b. FALSE Answers: 1-b, 2-c, 3-c, 4-a, 5-a REFERENCES • Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill. • Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India. • Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books. • Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India. • Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill. • Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House. 83 CU IDOL SELF LEARNING MATERIAL (SLM)

• Biswajeet Pattanayak, Human Resource Management, New Delhi, Prentice Hall of India, 2006. • Armstrong Michael: A Handbook of Human Resource Management, Kogan Page Ltd., London. 91 Performance Appraisal • Wayne F. Cascio, Managing Human Resources, Tata McGraw-Hill Publishing Company Limited, New Delhi, 2005. • Srinivas R. Kandula, Human Resource Management in Practice – with 300 Models, Techniques and Tools, Prentice-Hall of India Private Limited, New Delhi, 2003. • https://www.yourarticlelibrary.com • https://www.managementstudyguide.com • www.performancemanagementguide.com/ • http://en.wikipedia.org/wiki/Performance_appraisal • http://www.performance-appraisal.com/intro.htm . 84 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT -9 INDUSTRIAL RELATIONS Structure Learning Objectives Introduction Concept of IR Approaches of IR. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Explain the concept of industrial relations • Identify the approaches of industrial relations. INTRODUCTION Industrial relations (IR) have become one of the most complex and complicated problems of modern industrial society. The term industrial relations explain the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions andassociations through which such interactions are mediated. The term industrial relations have a broad as well as a narrow outlook. Originally, industrial relations were broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations cover all aspects of the employment relationship, including human resource management, employee relations, and union- management (or labour) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertain to the study and practice of collective bargaining, trade unionism, and labour-management relations, while human resource management is a separate, largely distinct field that deals with non-union employment relationships and the personnel practices and policies of employers. 85 CU IDOL SELF LEARNING MATERIAL (SLM)

The term 'Industrial Relations' comprises of two terms: 'Industry' and 'Relations'. \"Industry\" refers to \"any productive activity in which an individual (or a group of individuals) is (are) engaged\". By \"relations\" we mean \"the relationships that exist within the industry between the employer and his workmen.\" Harmonious industrial relations between labour and management are essential to achieve industrial peace and higher productivity. When the relationship between the parties is not cordial, discontentment develops and conflicts erupt abruptly. It is not always easy to put out the fires with the existing dispute-settlement-machinery, created by the government. Hence both labour and management must appreciate the importance of openness, trust and collaboration in their day-to- day dealings. CONCEPT OF INDUSTRIAL RELATIONS There is no unanimity on the meaning and scope of industrial relations since different terms, such as labour-management relations, employer-employee relations, union-management relations, personnel relations, human relations, are in use and are used synonymously. In its stricter sense, the term “industrial relations” means relationship between management and workmen in a unit or an industry. In its wider connotation, it means the organisation and practice of multi-pronged relationships between workers and management, unions and workers, and the unions and managements in an industry. Dale Yoder defines it as a “whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of an industry.” Tead and Metcalfe observed that “industrial relations are the composite result of the attitudes and approaches of employers and employees towards each other with regard to planning, supervision, direction and coordination of the activities of an organization with a minimum of human efforts and frictions with an animating spirit of cooperation and with proper regard for the genuine well-being of all members of the organization.” According to Allan Flanders, “the subject of industrial relations deals with certain regulated or institutionalized relationships in industry. Personal or in the language of sociology, “unstructured” relationships have their importance for management and workers, but they lie outside the scope of a system of industrial relations.” Professor Clegg defines industrial relations in the broadest terms as encompassing the rules governing employment together with the ways in which the rules are made and changed and their interpretation and administration.” To put it simply, industrial relation is that part of management which is concerned with the manpower of the enterprise. It is, thus, the relation created at different levels of the organisation by the diverse, complex and composite needs and aspirations and attitudes and approaches among the participants. It is a highly complex and dynamic process of relationships involving not only employees and managements, but also their collective forums and the State. In an organisation, these 86 CU IDOL SELF LEARNING MATERIAL (SLM)

relationships may be personal and informal at one end, and may be highly institutional with legally prescribed structures and procedures, at the other end. The four main parties who are actively associated with any industrial relations system are the workers, the managements, the organisations of workers and managements, and the State. Fundamentally, the term industrial relations refer to an organised relationship between two organised parties representing employers and employees regarding matters of collective interest. With the growth of professional management, the industrial relations scene is being represented by the representatives of both the employers and the employees. But the scope of industrial relations cannot merely be confined to common labour-management relations or employer-employee relations. It is a comprehensive and total concept embracing the sum total of relationships that exists at various levels of the organisational structure. More specifically, it connotes relations among workers themselves within the class of employees, relations among the managements within the managerial class, and relations between the two distinct classes of workers and management. It denotes all types of inter- group and intragroup relations within industry, both formal and informal. It consists of a complex network of relations that arise out of functional interdependence between workers and managements and between industrial organisations and society. Industrial relations are a social concept because it deals with social relationships in different walks of life. It is also a relative concept because it grows and flourishes or stagnates and decays in accordance with the economic, social and political conditions prevailing in a society and the laws made by the state to regulate them. The advances made in the field of science and technology also influence the state of industrial relations. There is greater divergence in industrial relations systems as a result of the divergent economic, social, political and cultural environments OBJECTIVES OF INDUSTRIAL RELATIONS: The basic objective of industrial relations is to bring about healthy relations between employers and employees. In addition, the other objectives include: • Avoiding industrial conflicts in the form of go slow, strikes, lock-outs, demonstration and so on and developing harmonious labour management relations for the benefit of employees, employers and the society at large. • Safeguarding the interests of labour and management through mutual understanding and goodwill among all sections connected with the production process. • Introducing the concept of industrial democracy at the level of industrial unit. • Raising industrial production and productivity to a higher level. • Maintaining industrial peace through collective bargaining and participative management. According to the ILO, industrial relations comprise relationships between the State on the one hand and the employers’ and employees’ organisations on the other hand and the relationship among the occupational organisations themselves. 87 CU IDOL SELF LEARNING MATERIAL (SLM)

APPROACHES OF INDUSTRIAL RELATIONS The problems posed in the field of industrial relations cannot be solved within the limits of a single discipline, and hence it is bound to be inter-disciplinary in approach. It is an interdisciplinary field that includes inputs from sociology, psychology, law, history, politics, economics, accounting and other elements of management studies. Industrial relations, then, has a dual character, it is both an interdisciplinary field and a separate discipline in its own right (Adams 1988). It is much more of an art than it is a science. Industrial relation is largely an applied field concerned with practice and 8 Conceptual Framework of Employment Relations the training of practitioners rather than with theory and measurement. It is thus related to the basic social sciences as engineering is to the physical sciences or medicine is to the biological sciences. Any problem in industrial relations has to be approached on a multi-disciplinary basis, drawing from the contributions of the above disciplines. The causes of an industrial dispute may be, by nature, economic, social, psychological or political or a combination of any of them. Labour economics provides an economic interpretation of the problems growing out of employer-employee relationship. Industrial sociology explains the social background of the workers, which is essential for the understanding of industrial relations. Industrial psychology clarifies certain concepts and provides empirical tools in areas such as recruitment, placement, training, fatigue and morale. For instance, attitudes and morale surveys are powerful tools to discover causes of industrial strife and to evolve methods for their prevention. Labour laws and their interpretation by tribunals and courts contributes to the growth of industrial jurisprudence. Application of quantitative analysis and labour statistics throws light on the exact stat e of industrial relations during a particular period. Political aspects also assume importance in industrial relations, particularly in a developing economy dominated by centralised planning. In fact, the growth of industrial relations as a scientific discipline depends upon the extent to which it integrates the contribution of established disciplines in the social sciences. There is no country where industrial relation is entirely a matter of tradition or custom nor is there a country where the employers, the workers or their organisations and the government do not at all interact to build up the country’s industrial relations system. It has been a mixture of traditions, customs and a web of action, reaction and interaction between the parties. The industrial relations system may be conceived at different levels, such as national, regional, industrial and workplace. The concept of the system has been influential in establishing industrial relations as a discipline in its own right. The concepts of the system approach are operationally definable. An industrial relations system may be defined as comprising the totality of power interactions of participants in a workplace, when these interactions involve industrial relations issues. It is viewed as an integral and non-separable part of the organisational structure and its dynamics. An industrial relations system includes all the individuals and institutions that interact at the workplace. Regardless of the level at which the system exists, an industrial relations system can be viewed as having three components: (1) a set of individuals and institutions that interact; (2) a context within which the interaction takes place; and (3) an output that 88 CU IDOL SELF LEARNING MATERIAL (SLM)

serves to govern the future relationship of the parties. The components of industrial relations system are: a. Participants: The participants in the industrial relations sphere are composed of duly recognised representatives of the parties interacting in several roles within the system. b. Issues: The power interactions of the participants in a workplace create industrial relations issues. These issues and the consequences of power interactions find their expression in a web of rules governing the behaviour of the parties at a workplace. c. Structure: The structure consists of all forms of institutionalised behaviour in a system. The structure may include collective procedures, grievances, and settlement practices. Legal enactments relevant to power interactions may also be considered to be a part of the structure. d. Boundaries: In systems analysis, it is possible to find an issue which one participant is totally indifferent to resolving while, at the same time, the other participant is highly concerned about resolution of the same. These issues may serve to delimit systems boundaries. At least there are three marked features of the systems approach. They are: a. Inter-disciplinary Character: Some theorists regard the systems approach to be universally applicable to all human relationships, in small or large units. Its flexibility of application in the behavioural sciences has been aptly demonstrated. b. Suitability to Work Organisation and their Sub-systems: The adaptability of the systems approach to organisation is also a frequently discussed trait. This springs from the fact that organisations, and to some extent their sub-systems, are rational and purposeful. c. Dynamic Aspects: A systems approach is oriented towards the study of interactions and changing relations. Based on various components and features of industrial relations, a number of writers have attempted to produce various functional approaches to industrial relations, which are given below: 1. Unitary Approach 2. Systems Approach 3. Pluralistic Approach 4. Marxist Approach 5. Strategic Management Approach 6. Psychological Approach 7. Sociological Approach 8. Human Relations Approach 9. Socio-Ethical Approach 10. Gandhian Approach 11. Dunlop’s Approach 12. V. V Giri Approach 89 CU IDOL SELF LEARNING MATERIAL (SLM)

Approach 1. Unitary: The basic assumption in unitary approach is that everyone benefits when the focus is on common interest and promotion of harmony. IR is grounded on mutual cooperation, individual treatment of employees, teamwork, and shared goals. Workplace conflict is seen as a temporary aberration resulting from poor management of employees, or the mismatch between employees and organizational culture. In other cases, employees cooperate with management and accept their right to manage the affairs of the organization. The earlier theorists have emphasized employee-oriented organizational processes to integrate the employees with the organization. This approach appears to be good in its orientation as it emphasizes employees in the organization. However, it has failed to consider different variables affecting IR within individual organizations and the total industrial sector. Various such approaches like paternalistic and philanthropic have failed because of the wrong assumptions made about the work behaviour of employees. This approach has been criticized on the basis that it is manipulative and exploitative. Approach 2. Systems: The systems approach of IR was developed by John Dunlop in 1958. He has presented a systematic theoretical orientation to the study of industrial relations. Before him, others have theorized industrial relations in terms of trade union purpose and collective bargaining but Dunlop has taken it in more comprehensive way. Therefore, he is regarded as father of industrial relations. According to Dunlop, industrial relations system is a distinctive subsystem of society on the same logical plane as an economic system. Like the economic system, it is an abstraction. There are no actors whose activity is confined solely to the industrial relations or economic sphere. Neither an economic system nor an IR system is designed simply to describe in factual terms the real world of time and space. Both are abstractions designed to highlight relationships. There are three sets of actors and their interrelationships which are central to understanding the IR system: i. A hierarchy of managers; ii. A hierarchy of workers who are never without informal organization even if they are not formally organized in a trade union; and iii. Specialized government agencies concerned with the relationship between workers and their organizations. 90 CU IDOL SELF LEARNING MATERIAL (SLM)

By interacting with each other, these three sets of actors establish rules which govern the workplace and the work community. Dunlop has observed that “just as the satisfaction of wants through the production and exchange of goods and services is the locus of analysis in the economic subsystem, so the establishment and administration of these rules is the major concern or output of the industrial relations subsystem.” It is these rules and procedures for their application which distinguish one IR system from others. Dunlop has emphasized that three actors of IR are not free. Their interactions are influenced by forces in the environment, the most important of them being technology, markets, and power relations in the wider society. He further, argues that an IR system is essentially stable and cohesive. While there is a conflict of interests between the actors, there is also a body of common ideas that each actor holds towards the place and function of the others in the system. This shared ideology and compatibility of views enables them to resolve conflict by framing appropriate rules. Dunlop’s approach of IR has provided a much wider framework for developing IR strategy in organizations. However, this approach has been criticized both in terms of conceptual framework as well as its application in practice. For example, Dunlop’s model works fairly well as long as the environment and the practices of the parties remain stable. However, the systems framework, with its stability and shared consensus among the actors concerning their respective roles, has a difficult time explaining the dynamic aspects of industrial relations. Approach 3. Pluralistic: The basic emphasis of pluralistic approach is that an organization is a coalition of interested groups headed by the top management which serves the long-term needs of the organization as a whole by paying due concern to all the interest groups affected — employees, shareholders, consumers, and society. In this process, there is possibility that the management may pay insufficient heed to the needs and claims of employees, and they may unite to bring collaborative force for the acceptance of these needs and claims. Thus, the stability in IR system is the product of concessions and compromises between management and unions. The pluralistic approach assumes that labour and management have many conflicting interests, but such conflicts are not only natural but even necessary because it is only competing social forces which can constrain and check the exercise of absolute power. The role of State is quite limited in IR system and should not have excessive influence on any party to IR. 91 CU IDOL SELF LEARNING MATERIAL (SLM)

The stress is on a negotiated order, a voluntary reconciliation between opposing forces with minimal intervention from external agencies. For example, through collective organization in trade unions, employees mobilize themselves to meet management on equal terms to negotiate the terms of their collaboration. This approach has certain basic limitations. The basic assumption that in a free society, labour and management will arrive at an acceptable negotiated term does not hold good. This may be a costly affair, at least, in the short-run. This was substantiated by the fact that there were widespread strikes during mid-1960s and early 1970s in England where this approach was evolved and practised. A society may be free but power distribution is not necessarily equal among the competing forces. Therefore, some kind of State intervention has become necessary to bring two parties involved in a conflict on equal terms. Approach 4. Marxist: Like pluralistic approach, Marxist approach also treats that labour and management conflict is inevitable. However, this approach differs from the earlier one so far as the cause of conflict is concerned; it ascribes that the conflict is the product of the capitalist society which is based on classes. The two classes — labour and capital — have essentially different interests in an organization, and these interests are conflicting. The objective of capital has been to enhance productivity by gaining control over the labour process. The wages of the labour are seen as a cost and, therefore, makes attempt to minimize it. Labour, being a factor of production, should be hired so long as it can generate profit. The labour-capital conflict cannot be solved by the existing systems of bargaining, participation, cooperation, and other means of building harmonious relationships; rather, it can be solved by the change in the capitalistic system as a whole. This has led to the emergence of new IR systems in most of the socialist countries. At many other places, it has generated the use of coercive power such as Gherao, etc. by the workers against management. The Marxist approach of IR may have some merits but it has somewhat li mited scope in countries not based on socialism as practised in communist bloc. Approach 5. Strategic Management: Strategic management approach to industrial relations is comparatively new developed in 1980s in USA and has spread throughout the world in a very short period of time. This approach puts question 92 CU IDOL SELF LEARNING MATERIAL (SLM)

about the relevance of the two institutions of IR — trade unions and collective bargaining in the changed situation. Faced with the new situation of globalization of world economy, the American companies started to have a relook at their old IR strategies in which major issues concerning trade unions and management used to be settled through collective bargaining. The new competitive environment necessitated proactive actions in which the collective bargaining yielded place to decentralized bargaining; bargaining for more wages and benefits to concessional bargaining in which such benefits were to be reduced in order to make an organization cost-effective; emphasis on multi-skilling, flexible deployment, and greater involvement of workers in improving productivity and performance; and considerable improvement in workplace to yield better results. The US companies have adopted the strategy of locating their plants in union-free regions and discouraged workers to form unions. Workers also realized the benefits of the new system which encouraged to earn more by developing new skills rather than going through unionized activities to earn more. They became more interested in career development. As a result, the trade unions, working on the basis of old objectives and methods, could not attract younger, better educated, and more skilled workers, and union membership has reduced to mere 20 per cent. Strategic management approach to IR suggests proactive strategy for developing IR system in place of reactive strategy suggested by the earlier theories. The proactive strategy is based on the following features: i. In the earlier system, the IR actions depended on the demands and pressures put by the trade unions. In the new approach IR actions and strategy are linked with the organization’s business strategy. ii. IR activities are not confined to IR department alone but extended to the total management. The top management which was earlier responsible for strategic management has focused its attention on combining HRM with business strategy in order to put proper emphasis on human resources as a means for developing competitive competence. iii. There is more emphasis on individuals as individuals and not as collectively. More attention has been given to career development through multi-skill training and development activities. iv. In place of collective bargaining, attempts are made to sort out problems at the work group levels. v. There is discouragement for unionization. Many of the organizations which have adopted this approach are union free. There is decreasing attraction to union activities among new workers. On the issue of strategic management approach to IR, it may be observed that most unions steadfast adherence to the traditional representation approach — which focuses on the grievance procedure, 93 CU IDOL SELF LEARNING MATERIAL (SLM)

formalized work rules, and seniority rights — has not proven attractive to employees who express concerns for issues such as day care and career development, and who desire to exert influence over the corporate reorganization that is occurring at an accelerated pace. They have gone on to view that the collective bargaining process is being squeezed and pressured to adapt to forces that operate above and below its traditional process and structure. Thus, there is a need to develop a broader conception of the institutional structure within which industrial relations activities occur. Approach 6 Psychological Approach: This approach suggests that the conflicts between labor and management are deeply rooted in the perceptions and attitudes of all the participants. Differences in the perception of the parties are due to their individuality. Conflicts arise when each party negatively perceives the other’s behavior. Labor and management view and interpret the situations differently and these differences create the problems of industrial relations. Approach 7 Sociological Approach: Industry is a part of society. So, various sociological factors such as value system, norms, customs, traditions and status symbols affect relations among the parties. The social consequences of industrialization like social mobility and migration generate many social evils like disintegration of family, stress and strain, delinquency, personal and social disorganization (leading to growing incidences of gambling, drinking, prostitution, drug abuse, etc.). These influence workers’ efficiency and productivity which, in turn, impact industrial relations. Approach 8 Human Relations Approach: This approach focuses on human beings as a key factor of production in industry. Unlike other resources such as finance and material, human beings have emotions, sentiments, desires, perceptions, attitudes, personality, etc. For harmonious industrial relations, there is a need for proper integration of individuals’ needs with the organization’s requirements. Management should motivate the employees in order to raise productivity. Approach 9 Socio-Ethical Approach: This approach to industrial relations emphasizes that besides having a sociological base, it does have some ethical ramifications. Good industrial relations can be maintained only when both the labour and management realize their moral responsibility in contributing to the said task through mutual cooperation and greatest understanding of each other’s problems. Approach 10 Gandhian Approach: 94 CU IDOL SELF LEARNING MATERIAL (SLM)

This approach to industrial relations is based on the fundamental principles of truth, non-violence and non-possession. There is a presumption that capital and labour can co-exist peacefully. Gandhiji emphasizes that if the employers follow the principle of trusteeship then there is no scope for conflict of interest between labour and management. Gandhiji accepted the workers’ right to strike, but cautioned that they should exercise this right for a just cause and in a peaceful and non-violent manner and this method should be resorted to when all other methods fail to get the employer’s response. Approach 11 Dunlop’s Approach: A system is an organized or complex whole, an assemblage or combination of things or parts forming a complex unitary whole. The systems approach tells us that no single element or phenomenon should be dealt with without regard for its interacting consequences with other elements. This suggests that there is always an interaction between the four basic elements, i.e., input, transformation, output and feedback. In the field of industrial relations, the systems approach to industrial relations was developed by John T. Dunlop. Dunlop described an Industrial Relations System (IRS) as consisting of three actors: workers and their organization, managers and their organization and the governmental agencies concerned with the work community. These groups interact with a specified environment which includes: technological environment, market or economic constraints and the balance of power in society. An IRS creates an ideology that regulates the relations among the participants. An ideology is a set of ideas and beliefs commonly held by the actors that helps to build or integrate the system together as an entity Approach 12 V.V. Giri Approach: This approach to industrial relations was given by V.V. Giri, the 4th President of India. He emphasized collective bargaining, voluntary arbitration and mutual negotiations between the employers and the employees for settlement of industrial disputes. This approach stresses internal settlement of issues rather than relying on some outside compulsion. Voluntary arbitration is preferred to compulsory arbitration. SUMMARY The term “industrial relations” refers to the complexity of human relationships, which emerge in work situations. The subject of industrial relations deals with certain regulated and institutionalised relationships in industry. The employment relationship in any work situation provides the setting for industrial relations. With this objective, the workers as a group form trade union, the employers form their own associations, and the state provides institutions for the regulation of relations. 95 CU IDOL SELF LEARNING MATERIAL (SLM)

The field of industrial relations has a multi-disciplinary base. It draws upon concepts from the established disciplines in social sciences, such as economics, sociology, and psychology. These disciplines have developed theories of industrial relations, but they differ considerably in their theoretical framework and practical application. The theorising in this field has developed in the direction of (a) environmental or external theories, and (b) internalist or in-plant theories. The prominent contribution to the industrial relations literature is the ‘systems’ approach developed by John T. Dunlop who views industrial relations system as a sub-system of society KEY WORDS/ABBREVIATIONS • International Labor Organization (ILO): A specialized agency of the United Nations that deals with labor issues. • International representative: An officer of an international union who has been appointed by the union’s executive board to serve as a liaison between the national or international level of the union and locals. • Industrial Conflict: Organized protest against prevailing industrial conditions raised by a group or a class of workers. • Industrial Dispute: Any dispute or difference between employers and employers, or between employers and workmen or between workmen and workmen which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person. • Industrial Relations: It generally refers to the collective relations between employers and employees as a group. • Lock-out: Closing down of an undertaking or the suspension of work or the refusal of an employer to continue to employ any number of persons employed by him. • Negotiation: An interpersonal process used by two or more parties whereby both or all modify their demands to reach an agreement. • Strike: A collective stoppage of work by a group of workers. LEARNING ACTIVITY 1. Choose an industry with which you are familiar and use Dunlop’s framework to describe the industrial relations system that exists there. ………………………………………………………………………………………………………… …………………………………………………………........................................................................ 2. One of the most difficult attempts in industrial relations is to build up a theory and to generalise on its activity that is highly dynamic. Discuss. 96 CU IDOL SELF LEARNING MATERIAL (SLM)