HUMAN RESOURCE MANAGEMENT

1
HUMAN RESOURCE MANAGEMENT

• S. vivekanantha,
• Faculty Member,
• Department of Management Studies
• Kodaikanal Christian College,
• Kodaikanal

2
The big difference between these terms

Personnel, Manpower, Human Resources and human
resource Development
3
Why Human Factor is More Important?

• Human resources are unique in character
• HR alone can produce an output greater than its
  input
• HR is the only resource which are animate
• HR is most complex and unpredictable in its
  behavior
• This is the only resource which appreciates in
  its value with the passage of time.

4
Meaning and Definition

• NIPM CALCUTTA" Personnel Management is that
  part of the management function which is
  primarily concerned with human relationships
  within in organization. Its objective is the
  maintenance of those relationships on a basis
  which, by consideration of the well-being of the
  individual, enables all those engaged in the
  undertaking to make their maximum personal
  contribution in the effective working of the
  undertaking.

5

• Edwin B Flippo The personnel function is
  concerned with the procurement, development,
  compensation, integration and maintenance of the
  personnel of an organization for the purpose of
  contributing towards the accomplishment of that
  organizations major goals or objectives.
  Therefore, personnel management is the planning,
  organizing, directing, and controlling of the
  performance of those operatives functions.

6
Difference between Personnel Management and Human
Resource Management

• Take Home Compulsory Assignment.

7
Objectives and scope of HRM

• To effective utilization of the human resources
• To establish and maintain an organizational
  structure
• To secure integration to the individuals and
  organization by reconciling individual group
  goals
• To generates maximum development of individuals
  groups
• To recognize and satisfy individual needs and
  group goals
• To maintain high morale and better human
  relations
• To develop and maintain a quality of work life
• To establish and maintain productive
  self-respecting working relationships

8
Features of HRM

• Comprehensive Function
• People-Oriented
• Action Oriented
• Individual Oriented
• Development Oriented
• Pervasive Function
• Continuous Function

• Interdisciplinary
• Nervous system.
• Young discipline
• Future-oriented
• Challenging Function
• Science as well an Art
• Staff function

9
Functions of HRM

• I. Managerial Functions
• a. Planning
• b. Organizing
• C. Directing
• d. Controlling.

• II. Operative Functions
• a. Procurement
• b. Development
• c. Compensation
• d. Integration
• e. Maintenance

10
What Is Strategic Management?

• Strategic Management
• The ongoing process companies use to form a
  vision, analyze their external environment and
  their internal environment, and select one or
  more strategies to use to create value for
  customers and other stakeholders, especially
  shareholders
• Vision
• Contains at least two componentsa mission that
  describes the firms DNA and the picture of the
  firm as it hopes to exist in a future time
  period.

11
Parts of Strategic Management

• Strategy
• An action plan designed to move an organization
  toward achievement of its vision
• Mission
• Defines the firms core intent and the business
  or businesses in which it intends to operate

12
The Strategic Environment

• Internal Environment
• The set of conditions (such as strengths,
  resources and capabilities, and so forth) inside
  the firm affecting the choice and use of
  strategies
• External Environment
• A set of conditions outside the firm that affect
  the firms performance

13
Key Characteristics of Strategic Management

• Strategic management is
• Performance oriented
• Ongoing in nature
• Dynamic rather than static
• Oriented to the present and the future
• Concerned with conditions both outside and inside
  the firm
• Concerned with performing well and satisfying
  stakeholders

14
The Three Parts of the StrategicManagement
Process

• Strategic leaders form a firms vision and
  mission.
• Firms analyze their external environment and
  their internal environment.
• Firms choose and implement a strategy that to
  creates unique mix of value for customers and
  satisfies other stakeholders.
• Strategy implementationthe set of actions firms
  take to use a strategy after it has been
  selected.

15
Vision and Mission Statements

• Vision Statements
• McDonaldsTo give each customer, every time, an
  experience that sets new standards in value,
  service, friendliness, and quality.
• NASDAQTo build the worlds first truly global
  securities market . . . A worldwide market of
  markets built on a worldwide network of networks
  . . . linking pools of liquidity and connecting
  investors from all over the world . . . assuring
  the best possible price for securities at the
  lowest possible cost.
• PetsmartTo be the premier organization in
  nurturing and enriching the bond between people
  and animals.
• WachoviaWachovias vision is to be the best,
  most trusted and admired financial services
  company.

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Mission statements contd

• Mission Statements
• Bristol-Myers SquibbOur mission is to extend and
  enhance human life by providing the
  highest-quality pharmaceuticals and health care
  products.
• GlaxoSmithKlineGSKs mission is to improve the
  quality of human life by enabling people to do
  more, feel better and live longer.
• MerckThe mission of Merck is to provide society
  with superior products and services by developing
  innovations and solutions that improve the
  quality of life and satisfy customer needs, and
  to provide employees with meaningful work and
  advancement opportunities, and investors with a
  superior rate of return.
• WiproThe mission is to be a full-service, global
  outsourcing company.

17
HUMAN RESOURCE PLANNING

• Definition It is the process by which management
  determines how an organisation should move from
  its current manpower position to its desired
  manpower position. Through it management strives
  to have the right number and the right kind of
  people at the right places, at the right time,
  doing things which result in both the
  organisation, and the individual receiving,
  maximum long-rang benefit

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Objectives of HRP

• To estimate cost of Hr and Housing needs of
  Employees
• To provide a basis for MDP
• To facilitate productivity Bargaining
• To meet the needs of Expansion and
  Diversification programmes
• To assess shortage and surplus of Hr

• To ensure optimum use of existing HR
• To forecast future requirements for HR
• To provide control measures
• To link HRP with Organisational Planning
• To determine levels of Recruitment and Training
  

19
Need and Importance of HRP

• HRP is useful in anticipating Cost of HR which
  facilitates budgeting easier
• HRP facilitates Career and succession planning
• HRP helps in planning for physical facilities
  like canteen staff quarters etc

• To carry on its work and to achieve its
  objectives
• HRP identifies gaps
• There is need to replace employees
• HRP facilitates expansion and growth
• HRP helpful in effective utilization of
• HR and Technology

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Why HRP gained so much focus in recent times

• Employment situation
• Technological Changes
• Organizational Changes
• Demographic Changes

• Lead time
• Hiring costs
• Increased Mobility
• Shortage of Skills
• Legislative Controls
• Pressure Groups
• Systems Concepts

21
Process of HRP

• 1. Analyzing Organizational Plans
• 2. Forecasting Demand for HR
• 3. Forecasting supply of HR
• 4. Estimating Manpower Gaps
• 5. Action Planning
• 6. Monitoring and Control

22
Assignments

• 1.What are the challenges of HR Executives in the
  present day business scenario?
• 2. State essential qualities of Successful HR
  Manager?
• 3. Draw an organizational chart of an MNC known
  to you and state whether HR function line or
  Staff function.

23
Further Readings

• 1. Human Resource Management
• Dr. C.B. Gupta Sultan Chand Sons Pub.
• 2. Human Resource Management S.S. Khanka S.
  Chand Pub.
• Personnel Management Industrial Relations
  P.C. Tripathi Himalaya Pub.

24
HUMAN RESOURCE MANAGEMENT

• S. vivekanantha,
• Faculty Member,
• Department of Management Studies
• Kodaikanal Christian College,
• Kodaikanal

25
Job Analysis

• Job analysis is a formal and detailed study of
  jobs
• It refers to a scientific and systematic analysis
  of a job in order to obtain all pertinent facts
  about the job
• It is essentially a process of collecting and
  analyzing all pertinent data relating to a job

26
Objectives of Job Analysis

• Job Redesign
• Work Standards
• Recruitment
• Selection
• Training
• Performance appraisal
• Job evaluation
• Safety

27
Benefits of Job Analysis

• 1. Organizational Design
• 2. Human Resource Planning
• 3. Recruitment and Selection
• 4. Placement and Orientation
• 5. Training and Development

• 6. Performance Appraisal
• 7. Career Path planning
• 8. Job Design
• 9. Job Evaluation
• 10 Labour Relation
• 11. Employee Counselling
• 12. Health and Safety

28
The process of Job Analysis

• 1. Organisational Analysis
• 2. Organising Job Analysis Programme
• 3. Deciding the uses of Job Analysis Information
• 4. Selecting Representative Jobs for analysis

• 5. Understand Job Design
• 6. Collection of Data
• 7. Developing a Job Description
• 8. Preparing a Job Specification

29
Techniques of Job Analysis

• 1. Job Performance
• 2. Personal Observation
• 3. Interview
• 4. Questionnaire
• 5. Critical Incidents
• 6. Log Records

30
Differentiate between Job Description and Job
Specification

• Job Description is a functional description of
  what the job entails. And define the purpose and
  scope of a job. It is a written record it
  contains title, location, duties,
  responsibilities, working conditions, hazards and
  relationship with other jobs.

• Job specification is a statement of the minimum
  acceptable human qualities required for the
  proper performance of a job.
• It includes physical, mental, social,
  psychological and behavioral characteristics of
  a person

31
Job Evaluation

• According to BIM, Job evaluation is the process
  of analysis and assessment of jobs to ascertain
  reliably their relative worth using the
  assessment as the basis for a balanced wage
  structure
• Job evaluation begins with job analysis and ends
  up with the classification of jobs according to
  their worth. A job cannot be evaluated unless and
  until it is analyzed.

32
Objectives of Job evaluation

• 1. To Determine equitable wage differentials
  between different jobs in the organization
• 2. To eliminate wage inequities
• 3.To develop a consistent wage policy
• 4. To provide a framework for periodic review and
  revision of wages
• 5. To provide a basis for wage negotiations
• 6. To enable management to gauge and control the
  payroll costs
• 7. To minimize wage descriptions on the basis of
  age, sex, caste, region, religion , creed etc

33
Methods of Job Evaluation

• Job Evaluation can be classified in to two
  categories
• 1. Non-quantitative methods
• a. Ranking or Job Comparison
• b. Grading or Job Classification
• 2. Quantitative methods
• a. Point Rating
• B. Factor Comparison

34
Recruitment

• What is Recruitment?
• What is Procurement?
• The Difference Between Recruitment and Selection
  and Placement.
• Why Recruitment is more important for an
  organization?
• How not to recruit employees in the organization?
• General Factors affecting Recruitment

35
The sources of Recruitment

• Internal Sources
• 1. Transfers
• 2. Promotions

• External Sources
• 1. Press Advertisements
• 2. Educational Institutions
• 3.Placement Agencies
• 4.Employment Exchanges
• 5.Labour Contractors
• 6.Unsolicited Applicants
• 7.Recommendations
• 8.Recruitment at Factory gate
• 9. Online

36
Recruitment Process

• Steps in Recruitment Process
• 1. Requisitions for recruitment from other
  department
• 2. Locating and Developing the sources of
  Required number and type of employees
• 3. Identifying the prospective employees with
  required characteristics
• 4. Communicating the information about the
  organization, the job and the terms of conditions
  of service.
• 5. Encourage the identified candidates to apply
  for jobs
• In the organization.
• 6. Evaluating the effectiveness of recruitment
  process.

37
What is Selection?

• Selection is the process of choosing the most
  suitable persons out of all the applicants.
• Selection is a process of matching the
  qualifications of applicants with the job
  requirements.
• It is the process of weeding out unsuitable
  candidates and finally identify the most suitable
  candidate.
• The purpose of Selection is to pick up the right
  person for every job.
• Selection is negative process as it rejects a
  large number of unsuitable applicants from the
  pool.

38
Methods of Selection

• 3. Personality Tests
• Objective test
• Projective test
• Situation test
• 4. Interest Tests
• Continued

• (a) Tests
• 1. Aptitude Tests
• Mental or Intelligence test
• Mechanical test
• Psycho-motor test
• 2. Achievement Tests
• - Job Knowledge test
• - Work sample test

39
Methods of Selection (continued)

• (b) Interviews
• Informal Interview
• Formal Interview
• Patterned or Structured Interview
• Non-Directed or Unstructured Interview
• Depth Interview
• Group Interview
• Stress Interview
• Panel or Board Interview

40
Selection Process

• 1. Preliminary Interview
• 2. Application Blank
• 3. Selection Test
• 4. Employment Interview
• 5.Medical Examination
• 6.Reference Checks
• 7. Final Approval

41
Induction/Orientation

• Definition Orientation or induction is the
  process of receiving and welcoming an employee
  when he first joins a company and giving in the
  basic information he needs to settle down quickly
  and happily and start work.
• Objectives and Advantages of an Induction
  programme.

42
Advantages and Objectives of an Orientation
programme

• Objectives
• 1. To help the new come to overcome his shyness
• To build new employees confidence
• To develop the new entrants a sense of belonging
  and loyalty
• To foster a close and cordial relationship
• To prevent false impression and negative attitude
  of the new employees
• To give the new comers necessary information like
  canteen, locker room. Rest periods and leave
  rules etc

• Advantages
• It helps to build two way communication
• It facilitates informal relations and team work
• Induction is helpful in supplying information
  about the organisation, job, and welfare of
  employees
• Proper Induction will reduce employees
  grievances, absenteeism and labour turnover
• Induction helps to develop good public relations
  and improve the overall morale of employees
• An Induction programme proves that the company is
  taking a sincere interest in getting him off to a
  good start

43
Contents of an Induction programme

• Brief history and operations of the company.
• Products and services of the company.
• The companys organization structure.
• Location of departments and employee facilities.
• Policies and procedures of the company.
• Rules, regulations and daily work routines.
• Grievance procedures.
• Safety measures
• Standing orders and disciplinary procedures
• Terms and conditions of service including wages,
  working hours, over time, holidays etc.
• Suggestion schemes
• Benefits and services for employees.
• Opportunities for training and promotions
  transfers etc.

44
Employer Investment on People

• A country can develop only when its human
  resources are developed through health,
  nutrition, education, training and research. At
  the Organisational level, employee training and
  executive development are main areas of human
  resource development.
• The subtle differences between Training,
  Development and Education

45
Why Training is needed?

• To familiarize the employee with the companys
  culture
• To increase the employees quantity and quality
  of output
• To enable the employee to do new jobs and prevent
  of his old skills become obsolete
• To prepare the employee for promotion to higher
  jobs
• To reduce supervision, wastage and accidents
• To build second line workers

46
Importance of Training

• 1. Higher productivity
• 2. Better quality of work
• 3. Less learning period
• 4. Cost Reduction
• 5. Reduced supervision
• 6. Low accident rate
• 7. High morale
• 8. Personal Growth
• 9. Organizational Climate

47
Steps in Training Programme

• 1. Identifying Training Needs- Present
  Performance Desired Performance (Accepted Level
  of Performance)
• 2. Setting Training Objectives and Policy
• 3.Designing Training Programme
• 4. Conducting the Training
• 5. Follow up and Evaluation

48
Assignments

• 1. State essential qualities of Successful
  Recruitment Advertisement. And also state how
  will you spell out Job specification and job
  description briefly in the AD itself.
• 2. How will you carry out training need
  analysis for a medium sized organization?
• 3. If you are HR Executive of an MNC, How will
  you retain employees in your organization?

49
Further Readings

• 1. Human Resource Management
• Dr. C.B. Gupta Sultan Chand Sons Pub
• 2. Human Resource Management S.S. Khanka S.
  Chand Pub
• 3.Personnel Management Industrial Relations
  P.C. Tripathi Himalaya Pub
• 4. Personnel Management C.B Mamoria Vikas Pub.

50
HUMAN RESOURCE MANAGEMENT

• S. vivekanantha,
• Faculty Member,
• Department of Management Studies
• Kodaikanal Christian College,
• Kodaikanal

51
PROMOTION

• Promotion refers to advancement of an employee to
  a higher post carrying greater responsibilities,
  higher status and better salary. It is the upward
  movement of an employee in the organization's
  hierarchy, to another job commanding greater
  authority, higher status and better working
  standards.

52
Transfer

• A transfer refers to a horizontal or lateral
  movement of an employee from one job to another
  in the same organization without any significant
  changes status and pay. It has been defined as
  lateral shift causing movement of individuals
  from one position to another usually without
  involving any marked change in duties,
  responsibilities, skills needed or compensation

53
Need and purpose of Transfers

• 1. To meet organizational needs
• 2. To satisfy employee Needs
• 3. To better utilization of Employees
• 4. To make the Employee More versatile
• 5. To adjust the work force
• 6. To provide Relief
• 7. To Punish Employees

54
Types of Transfers

• 1. Production Transfer
• 2. Replacement Transfer
• 3. Versatility Transfer
• 4. Remedial Transfer
• 5. Shift Transfer

55
Demotion

• Demotion implies the assignment of an employee to
  a job of lower rank with lower pay. It refers to
  downward movement pf an employee in the
  organizational hierarchy with lower status and
  lower salary.
• It is downgrading process and a serious type of
  Punishment, hence it should be used tactfully and
  only when it is absolutely necessary.

56
Need for Demotion Why and When

• 1. Adverse Business Conditions
• 2. Incompetence
• 3. Technological Change
• 4. Disciplinary Measure.

57
Seperations

• Separation of an employee takes place when his
  service agreement with the organisation come to
  an end and the employee the organisation. It may
  occur due to resignation, death, dismissal and
  layoff. Following are various forms of
  separations.
• Resignation Retirement Layoff Re
  trenchment Dismissal

58
Wage and Salary Administration (WASA)

• Objectives of WASA
• 1. To establish a fair and equitable remuneration
• 2. To attract competent personnel
• 3. To retain the present employees
• 4. To improve productivity
• 5. To control Costs
• 6. To improve union management relations
• 7. To improve the public image of the company

59
Essentials of sound wage and Salary structure

• 1. Internal Equity
• 2.External Competitiveness
• 3. Built in incentive
• 4. Link with productivity
• 5. Maintain Real Wages
• 6. Increments

60
General and Individual Factors affecting Wages

• General Factors
• 1. Demand for and Supply of labour
• 2. Ability to pay of the Organization
• 3. Labour Unions
• 4. Cost of Living
• 5. Prevailing wage rates
• 6. Job Requirements
• 7. Productivity
• 8. State Regulation

• Individual Factors
• 1. Employees Age and work Experience
• 2. Educational Qualification
• 3. Promotion possibilities
• 4.Hazards involved in the job
• 5. Stability of Employment
• 6.Demand for the product
• 7.Industrys role in the economy
• 8.Potentials of an employee

61
Methods of Wage Payment

• 1. Time Wage system
• 2. Piece Wage system

62
Assignments

• 1.What are the Precautions a manager should have
  while go for Demotion of an employee?
• 2. Determining Wage structure is a cumbersome
  process and it requires lot more knowledge and
  thinking- discuss
• 3. If you are an owner of the production unit of
  a retail product which method would you adopt for
  payment of wages?

63
Further Readings

• 1. Human Resource Management Saiyadin - TMH
  Pub.
• 2. Human Resource Management Dr. C.B. Gupta
  Sultan Chand and sons Pub.
• Personnel Management Industrial Relations
  P.C. Tripathi Himalaya Pub.

64
HUMAN RESOURCE MANAGEMENT

• Unit IV
• Bachelor of Business Administration
• V Semester
• Non CBCS Syllabus of Madurai Kamaraj University

• S. Vivekanantha,
• Faculty Member, School of Business Studies and
  Application, Kodaikanal Christian College,
• Kodaikanal

65
Industrial Relations

• Industrial Relations are exercises in
  organizational relations between functional
  interest groups.
• According to ILO, IR comprise relationships
  between the State on the one hand and the
  employers and organizations on the other and the
  occupational organizations themselves.
• It means Collective relationship between
  management, employees and government in any
  industrial or non-industrial organization

66
Objectives and Importance of IR

• To Develop and maintain harmonious relationship
  between management and labour
• To safeguard the interests of labour
• To establish and maintain industrial Democracy
• To avoid all form of industrial conflict so as to
  ensure industrial peace
• To raise productivity and reduce high labour
  turnover
• To bring about Government control over such
  industrial units
• To ensure a healthy and balanced social order
  through recognition of human rights by way of
  trade unionism

67
Causes and Effects of poor Industrial
Relations

• Multiplier Effects
• Fall in normal Tempo
• Resistance to Change
• Frustration and Social cost

• Economic Causes
• Organizational Causes
• Psychological Causes
• Social Causes
• Political Causes

68
Remedies to Improve Industrial Relations

• General Guidelines
• 1. Sound personnel polices
• 2.Constructive Attitudes
• 3. Collective Bargaining
• 4. Participative Management
• 5. Responsible Unions
• 6. Employee Welfare
• 7. Effective Grievance Procedure

69
Remedies to Improve Industrial Relations

• Specific Guidelines
• Both Management and Union should Develop trust
  and positive attitude towards each other.
• All basic policies and procedures Relating to
  Industrial Relations should be clear to every
  body in the organization and the Union Leaders
• The personnel manager should remove any distrust
  by convincing the union of the companys
  integrity and his own sincerity and Honesty.
• Management should encourage right kind of Union
  Leadership
• After the settlement is reached should be
  properly administered.

70
Meaning and Definitionof Grievances

• Broadly speaking Grievance means any real or
  imaginary feeling of dissatisfaction and
  injustice which an employee has about his
  employment relationship.
• According to Michael J Jucious, a grievance is
  any discontent or dissatisfaction, whether
  expressed or not, whether valid or not, arising
  out of anything connected with the company that
  an employee thinks, believes or even feels, is
  unfair,unjust or inequitable

71
Causes of Grievances

• 1. Grievances arising out of Working Conditions
• 2. Grievances arising from Management policy
• 3. Grievances arising from Alleged violation of
  certain statutes
• 4. Grievances arising out of Personal
  Maladjustment

72
Understanding Employee Grievances

• 1. Exit Interview
• 2. Opinion Surveys
• 3. Gripe Boxes
• 4. Open Door Policy

• Effects of Grievances
• 1. Indiscipline
• Low morale and decreased productivity
• High Absenteeism and turnover
• Loss of faith in management
• Increase in accidents
• Formation of cliques
• Lowering of public image of the organization

73
Standard Grievance Procedure (ILC)

• Follow only standard procedure ( a voluntary
  Grievance procedure) in pursuance to the Code of
  Discipline adopted in the 16th session Indian
  Labour Conference in 1958. It contains Five
  successive time bound steps each leading to the
  next in case the aggrieved employee prefers an
  appeal.

74
Essentials of Sound Grievance Procedure

• 1. Legal Sanctity
• 2. Acceptability
• 3. Promptness
• 4. Simplicity
• 5. Training
• 6.Follow-up

75
Assignments

• How Political parties influence industrial
  relations Sean in India? How will you alleviate
  political influence in the Industry?
• 2. Rust is the worst foe of Iron similarly
  Frustration is the worst opponent of human
  being. Do you agree. Highlight the evil effects
  of Grievances on ordinary Industrial worker.
• 3. Draw a suitable grievance redress procedure
  for a medium sized manufacturing organisation.

76
Further Readings

• 1. Human Resource Management
• Dr. C.B. Gupta Sultan Chand Sons Pub.
• 2. Industrial Relations by Arun Monappa
• TMH- pub.
• 3. Personnel Management Industrial Relations
  P.C. Tripathi Himalaya Pub.

77
HUMAN RESOURCE MANAGEMENT

• Unit V
• Bachelor of Business Administration
• V Semester
• Non CBCS Syllabus of Madurai Kamaraj University
  

• S. Vivekanantha,
• Faculty Member, School of Business Studies and
  Application,
• Kodaikanal Christian College,
• Kodaikanal

78
Meaning and Definition of Performance
Appraisal

• Performance appraisal or performance evaluation
  is the process of assessing the performance and
  progress of an employee or of a group of
  employees on a given job and his potential for
  future development.
• According to Flippo, Performance appraisal is
  the systematic, periodic and an impartial rating
  of an employees excellence in matters pertaining
  to his present job and his potential for a better
  job
• Difference between Merit-rating and Performance
  Appraisal
• Present appraisal systems in practice- 360
  degree

79
The process of Performance Appraisal

• 1. Establishing Performance Standards
• 2. Communicating the Standards
• 3. Measuring Performance
• 4. Comparing the actual standards with the
  Standards
• 5. Discussing the Appraisal
• 6. Taking Corrective Actions

80
Methods of Performance Appraisal

• Traditional Methods
• 1. Confidential Report
• 2. Free Form or Essay
• 3. Straight Ranking
• 4. Paired Comparisons
• 5. Forced Distribution
• 6. Graphic Rating Scales
• 7. Checklist Method
• 8. Critical Incidents
• 9. Group Appraisal
• 10. Field Review

• Modern Methods
• 1. Assessment Centre
• 2. Human Resource Accounting
• 3. Behaviorally Anchored Rating Scales
• 4. Appraisal through MBO.

81
Essentials of an Effective Appraisal System

• 1. Mutual Trust
• 2.Clear Objectives
• 3.Standardisation
• 4.Training
• 5.Job Relatedness

• 6.Documentation
• 7. Feedback and Participation
• 8. Individual differences
• 9. Post appraisal Interview
• 10. Review and Appeal

82
Workers Participation in Management

• According Keith Davis Participation refers to
  the mental and emotional involvement of a person
  in a group situation which encourages him to
  contribute to group goals and share in
  the responsibility of achieving them
• It is a process by which authority and
  responsibility of managing industry are shared
  with workers
• In Yugoslavia it is called self-management
• In Germany it is known as Co-determination

83
In the words of Mehtras, the concept of
participation as a principle of democratic
administration in an industry implies a share by
rank and file in the decision-making process of
an industrial organization through their
representatives at all the appropriate levels of
management in the entire range of managerial
action
84
Objectives of Workers participation in management

• 1. Democratic right to influence the managerial
  decisions
• 2. Raise worker level of motivation and
  commitment
• 3.Cross-fertilisation and speedy communication of
  ideas
• Foster better co-operation between labour and
  management.

• 1. Economic objective
• 2. Social Objective
• 3. Psychological Objective

85
Importance of Workers Participation in Management

• Mutual Understanding
• Higher Productivity
• Industrial Harmony
• Industrial Democracy
• Less Resistance to change
• Creativity and Innovation

86
Levels/Degrees of Participation

• Communication
• Consultation
• Codetermination
• Self-Management

87
Forms of Workers Participation in Management

• Suggestion Scheme
• Works committees
• Joint Management Councils
• Worker Directors
• Co-Partnership

88
Assignments

• 1. Why Workers Participation in management is a
  desperate failure in India? Suggest some measures
  for making participation successful.
• 2. Write an essay on 360 degree Performance
  appraisal system which prevails in the most
  successful Organizations.
• 3. Performance appraisals are mere paper tigers,
  if you wish to grab incentive please your boss
  Pass a Critical comment on it.

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Further Readings

• 1. Human Resource Management Saiyadin - TMH
  Pub.
• 2. Human Resource Management Dr. C.B. Gupta
  Sultan Chand and sons Pub.
• Personnel Management Industrial Relations
  P.C. Tripathi Himalaya Pub.