Human Resource Management

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Written & Composed by: Mohammad Masood Babar, M.Com – II, 2012 – 2014.

University Of Balochistan, Quetta.

Human Resource Management

(HRM) – Notes

Chapter 01; Management and Personnel Administration :

EXPLAIN IN DETAIL THE TERM H.R.M:

Human Resource Management: H.R.M is that function performed in organization which facilitates the most effective use of people (employee) to achieve organizational and individual’s goals. The term such as personnel, human resource management, industrial relations and employee development are used by different individuals to describe the unit, department, or group concerned about people. The term human resource management is now widely used though people. People may still refer to a personnel department. H.R.M is the term that reflects the increased concern both society and organizations have in people.

Definitions of HRM:

The staffing functions of the management process. Or the policies and practices needed to carry out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising etc.

TOMES SPADE explains it as “It is a code of ways of organizing and treating individuals at work”.

It is the management of relation between employer and employee.

Process of developing, applying & evaluating the policies, procedure, methods and program relating to the individual in the organization.

Personnel or HR Policies:

1. Policy is plan of action. 2. Statement of ideas.

Policy statement (detail statement of all actions).

Principal statement. 3. Policy should be definite. 4. It creates ambiguity. 5. Should be in written form and communicated.

Human Resource Policies: Human Resource Policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance management, employee relations and resource planning.

Each company has a different set of circumstances, and so develops an individual set of human resource policies.

Personnel policies, why firm adopt a

definite personnel policy. Personnel

policy should be in written.

1). PERSONAL POLICY: A policy is a plan of action. It is a statement of intention committing management to a general course of action. When management draft a policy statement to cover some feature of its personal programme that statement may often contain an expression of philosophy and principle as well.

2). WHY ADOPT DEFINITE POLICY: Many organization of all type have never created a set of personnel policies to management have never been sufficiently aware of the hazards of operating without policy and advantages to be gained from establishing a sound group of policies as well as these firm should adopt such personal policies. (i). Organization and Employee need: The work involve in formulation personnel policy requires that management give deep thought to the basic needs of both the organization and the employee management must examine its basic convictions as well as give full consideration to prevailing practice in other organization.

(ii). Consistent Treatment of all Personnel:

Established policies assure consistent treatment of all personnel throughout the organization. Favoritism and discrimination are thereby minimized to achieve the objects efficiently.

(iii). Continuity of Action: Continuity of action is assured even enough top management personnel change. The president of a company may possess a very sound personnel management philosophy he may carry on polices of the organization in his head and he may apply them in an entirely fair manner but what happens when he retires or resigns the tenure of office of a manager infinite. But the organization continuous policies promote stability.

(iv). Standard of Performance: Policies serve as a standard of performance. Actual result can be compared with the policy of determine how well the number of organization are living up to professed intentions.

(v). Build Enthusiasm Loyalty: Sound policies help to build employee enthusiasm loyalty. This is special true where the policies reflect established of fair

play and justice for where they help the people grow with is the organization.

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3). POLICY SHOULD BE WRITTEN: Policies should also be in written form because written policies let everyone know just what kind of treatment he/she can expect to receive from management that let one know where one stand only when policies are reduced to writing can they be communicating to all employees.

In large organization containing many dispersed plants, written policies are almost necessary. They ensure reasonable consistent treatment throughout the company in such matter as pay, promotion, opportunity, transfer, layoff, pension right, insurance benefit, training, opportunities and grievances heading, thus personnel policies play very important role in different subject matter of an organization and also provide guidance to management to how they should behave with the employees in solving various problem that occurs in an organization.

ADVANTAGES OF HR POLICIES:

1. Give a deep thought to the basic needs of the organization & employee

2. Clear & establish policy minimize the favoritism and discrimination

3. Policy promote stability 4. Policy serve as a standard of performances 5. Sound & definite policy helps to build employee

enthusiasm and loyalty.

Formulating Personnel Policies: H.R policies need to address the key HR issues that have been identified in the organization. They must also take account of external influences such as legislation. The maximum amount of consultation should take place with managers, employees and their representatives and the policies should be communicated widely with guidelines on their application. The following steps should be taken when formulating HR policies. 1. Past practices in the organization. 2. Prevailing practices among other companies. 3. The attitude and philosophy of the board of

director/top MGT. 4. The attitude and philosophy of the middle &

lower management. 5. The knowledge and experience gained from

handling countries personnel problem on day to day business.

Developing the HR Policies:

HR policies allow an organization to be clear with employees on: The nature of the organization. What they should expect from the organization. What the organization expects of them. How policies and procedures work. What is acceptable and unacceptable behavior?

The consequences of unacceptable behavior.

HR policies provide an organization with a mechanism to manage risk by staying up to date with current trends in employment standards and legislation. The policies must be framed in a manner that the companies vision & the human resource helping the company to achieve it or work towards it are at all levels benefited and at the same time not deviated from their main objective.

Purposes(why making policies): The establishment of policies can help an organization demonstrate, both internally and externally, that it meets requirements for diversity, ethics and training as well as its commitments in relation to regulation and corporate governance of its employees. For example, in order to dismiss an employee in accordance with employment law requirements, amongst other considerations, it will normally be necessary to meet provisions within employment contracts and collective bargaining agreements. The establishment of an HR Policy which sets out obligations, standards of behavior and document disciplinary procedures, is now the standard approach to meeting these obligations.

HR policies can also be very effective at supporting and building the desired organizational culture. For example, recruitment and retention policies might outline the way the organization values a flexible workforce, compensation policies might support this by offering a 48/52 pay option where employees can take an extra four weeks holidays per year and receive less pay across the year.

Functions of PERSONNEL:

Personnel function is concerns with all aspects of managing the human resources of organization.

This involves following broad activities which an organization has to follow.

1. Determining the Organization Human

Resources: It is commonly called manpower planning this aspect of personnel management start with an assessment of organization current human resources. Forecast are then made of the total future manpower requirement of the organization’s present human resources with its total future requirements determine the

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organization’s human resource needs, which are then incorporated into a personnel plan.

2. Recruiting and Selection of Personnel: Recruiting involves seeking and attracting a pool of people from which qualified candidates for job vacancies can be selected the extent of recruiting effort required is determined by the personnel plan the purpose of selection is to choose from the a viable candidates those individuals who are most likely to succeed on the job. The selection process can function effectively only when an adequate pool of qualified individuals has been identified either from the organization’s current human resources or through recruitment process.

3. Developing Employees: The organization has acquired its human resource it must develop the skill and abilities of these individuals through proper training program the goal of the function of personnel management is to improve present future performance with the organization through proper training program.

4. Rewarding Employees: Rewarding employees include reorganizing achievements and providing both intrinsic and extrinsic reward. Intrinsic reward are internal to the individual the work itself job satisfaction and feeling of accomplishment are included in the intrinsic reward. External reward more tangible and include pay; fringe benefits and premium.

5. Counseling Employees: The area of personnel management encompasses many of the day to day activities of the organization’s personnel’s the personnel department should assist the line manager in understanding and communicating with employees the personnel department also becomes involved in assisting employees with personnel as well as job related problems.

6. Acting as liaison with Union and

Government Organization: The personnel department normally serves as a liaison between management and union and this is involved in the collective bargaining process as well as in discipline and grievances handling the personnel department also serves as a liaison between management and various government unit.

7. Other Matters to Employee Wellbeing: Such step catches all function include such things as employee’s safety and health and recreation. Employee’s safety and health involve accident prevention first aid and insuring that all government safety recreation is met.

Employee’s recreation includes various physical and social recreational programs sponsored by the organization such as parties and sport teams.

ACTIVITIES OF PERSONNEL: It consists of numerous activities, including:

1. Employment 2. Promotion, transfer & layout 3. Labor relations 4. Organization planning 5. Organization development 6. HR planning 7. Discipline, control, evaluation and discharge. 8. Training and development 9. Training and development admin 10. Safety and health. 11. Benefit and service 12. Equal employee opportunity. 13. Personal & behavioral research

Three things should be used about H.R.M at the beginning. 1. Action Oriented: Effective H.R.M is action oriented. It is not focused on record keeping, written procedures or rules. HRM emphasizes the solution of employment problem which help to achieve organizational objectives and facilitate employee development and satisfaction. 2. Individually Oriented: Whenever HRM treat employee as an individual and offers services and programs to meet individual needs. 3. Future Oriented: Effective HRM is future oriented. It is concerned with helping an organization to achieve its objectives in the future by providing competent and well-motivated employees. HRM activities can help in many ways to insure that an organization will survive and prosper.

OBJECTIVES OF PERSONNEL: The contribution HRM makes to organization effectiveness are reflected in the objectives pursued by those working in the function and includes. 1. To help organization reach its goals. 2. To employ the skill and abilities of the work

force efficiently. 3. To provide the organization well trained and

well-motivated employees. 4. To increase the employee’s job satisfaction and

self-actualization. 5. To develop and maintain a quality of work life

which makes employment in the organization a desirable personnel and social situation.

6. To communicate HRM policies to all employee.

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7. To help to maintain ethical policies and behavior.

8. To manage change to the mutual advantage of individual groups, the enterprise and the public.

HRM OBJECTIVES: One major function of the HRM exercise is the development of HRM objective as stated above. An organization makes more specific by developing policies. Policy: A policy is a general guide to decision making. Policies are developed for areas where problems have arisen in past or in potential problem areas which management consider important enough to warrant policy development. After the broadest policies are developed, some organizations develop procedure and rules. Procedure: A procedure or rule is a specific direction to action. It tells manager how to do a particular activity. In large organizations, procedure are collected and put into manuals usually called standard operating procedure. Some organizations in effective eliminate managerial initiative by trying to develop policies and procedure for everything procedure should be developed only for the most vital area.

Chapter 2; Organization and Its Approaches:

Organization: An organization is a system having an established structure and conscious planning, in which people work and deal with one another in a coordinated and cooperative manner for the accomplishment of recognized goals. Organization is a system in which people, job resources and managerial practice are coordinate to achieve the specified goals.

Approach to the study of organization: Basically there are two approaches for study of organization that has been developed since the early year of 20th century. 1. Classical approach: The earlier works has been designed to classical and traditional theories of organization and management. It belongs to three main categories. (i). Scientific Management: Frederick .W. Taylor was an American engineer and management expert was a founder of this movement. (1858-1915). He initiated and developed systematic job study, time study, standardization of the job, task specialization, setting of a measured quota of work and wage incentive, to induce high output and careful worker selection and training. He advocated

maximum worker productivity rather the restriction of output. Industrial leaders saw it as a way to higher productivity greater profit, lower cost, and better control of the machine system. (ii). Administrative Management: The leader of this theory was Henry Fayol and his colleague Luther Gulick. Administrative management theorist looked at the organization from top down. The following represents a synthesis of their main proposition. 1. Specialization of function and division of labor

are necessary for efficient 2. Coordination of function and people is to be

performed by the manager of each unit. 3. The responsibility and authority of each

supervisor and manager must be clear delineated. There must be clear line of authority top to bottom of the structure (chain of command).

4. Orders, information and complaints should flow properly along the line of chain of command and there should be no by passing of an individual manager in the chain of command.

5. The number of direct subordinate that one person can efficiently supervise; it limited to give five or six, although the number may vary according to circumstances (span of control).

(iii). Bureaucratic Model (Formal

Organization): The concept of bureaucracy as a model of formal organization was originated by the great German sociology, Max Weber, who did most of his writing during the 1900-1920 period. He viewed bureaucracy as the most efficient instrument for operating large scale organization

Principal features: Features consist of following 1. Clear cut division of labor and high degree of specialization in prospective job. 2. Each lower level office must be under the control of higher on hierarchy. 3. A system of rule impersonally administrated. 4. Employment and assignment to position based qualification, rather than nepotism or favoritism. 5. Job security for employee in each department. 6. Extensive use of record documents and files to avoid confusion in the process.

2. Behavioral Science Approach: The research study of investigation of Elton Mayo and his colleague of Harvard University at the Hawthorn work of the western electric company in Chicago from 1927-32 market the beginning of the human relations movement. This series of study demonstrated by the key importance of group pressure social relations, and attitude towards

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supervision and the job as determinants of group productivity, The result of study indicates that productivity was directly related to the group team work and group sentiments and standard output in result of wages incentive plans.

ORGANIZATION STRUCTURE IN

DETAIL:

Organization Structure: It refers to design of organization. Organization structure is divided into two ways.

1. Division by Labor: Division by labor contributes to increase the productivity. Therefore work must be grouped into different levels that is managerial hierarchy must be set up and defined. There are three major levels are carried out by the organization. (i). Lower Management: The term lower management includes assistant foreman, general foreman, and office supervisor, they instruct employees in the method of performing their jobs, assign and reassign employees to specific job and task and take prom it action to overcome delays and breakdown in production process. They generally have full authority to take whatever step are requisition materials and supplies, authorized overtime work and obtain maintenance inspection and services. (ii). Middle Management: The term middle level management includes supervisory and executive personnel in production and sale. Middle level managers transmit and sharpen up information and orders from top management to lower level they help to solve major difficulties when lower level managers face trouble the operate within the programs and policy given by higher officials they spend most of their time on telephone calls, preparing reports and meeting with colleague of similar rank. They have the authority of selecting, training change in status, position and settlement of grievances and disciplinary problems. (iii). Top Management: The term top management includes the president, vice president and top executive officer gives the integrating function for the organization they give it direction and purpose. The top team must concern itself with the survival and growth of the organization. They establish operating policies and guide the organization to achieve its goal the establishing overall policies and present their organization in business dealing, community affairs and governments. They spent most of their time with peers and less or extent with subordinate

considerable time is also devoted to deliberation and reading report. 2. Grouping Activities by Kind: There are five basic ways of grouping work activities. Function: grouping activity as per similar

work, skill, knowledge, and orientation is the most widely used of the entire basis to departmentation. This is all done through brain work and manual work. Placing each worker into dept. as per their function comes in it.

Location or Geographical area: Sales forces are typically organized by this method. So the company must have sales offices in different cities to cover the other cities.

Product: This method is familiar to the manufacturing field. A company makes many products through different departments every department should have their sales department in many countries there has been a strong trend towards product departmentation, and product departmentation gains unified accountability for performance of product line.

Customer or Client: A sales force may be divided into those calling on Government agencies, industries, and private individuals. This type of specialization may be advantageous if the personnel must cater to the special needs of particular classes of customers.

Number of Persons: Often times there are a large numbers of employees who are doing the same thing, working in the same general location on the same products and for the same Clint. Considering number of persons it ought to be noted that are rarely does one emporium adopt only one pure form.

JOB DESIGN:

The job design is a systematic process in which the 1.work control, 2.reward and 3.qualification required for each job.

Work control means placing people in the right job and designing those jobs correctly. (Task, duties, behavior, function, responsibilities)

Reward may of two types. Intrinsic reward occur when a person is performing an activity in which he is given satisfaction from engaging in the activity itself extrinsic reward are that a person can enjoy after he finishes his work.

Qualification comprises of skill, knowledge and experience for the required job performance. So it means specification of contents method and relationship of job in order to as well as social and personnel requirements of the job holder.

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APPROACHES FOR JOB DESIGN:

There are four job approaches available for the manager. (i). Work Simplification: An explanation of the qualification that a person holding a job possesses in order to perform the job successfully. Work simplification means that the whole job is broken down into small parts for both managerial and non-managerial jobs usually consists of few operation and task. In such approach duties of employee broken down in to small pieces so he will work efficiently. A firm can hire large number of employees and low wages because they are less trained. Therefore many small jobs can be performed simultaneously so that complete operation can be done quickly. Though, it becomes more particular so it create problem for the employees while performing their jobs. (ii). Job Rotation: It is the process of moving an employee from verity of jobs so it will help to learn some new experience and prospective. Having an employee on routine, repetitive job more from one routine job to other every few hours or days is a form of job rotation that has been found to relive from boredom and monetary. As job are switched periodically the boredom and disinterest may be reduced worker are also be able to get more complete view of the importance of each job in the whole organization. This strategy perhaps easier for management because job do not have to be redesigned it also allow management to select best time to rotate a person. (iii). Job Enlargement: Horizontal loading:- It is the just opposite of job simplification the job enlargement is a generic term that broadly mean adding more and different task to specialized job. It may widen the number of task the worker must do that is added to a job that is initially simple in nature Such strategy increases worker moral, lower production cost, raise interest of employees and improve the quality of the output. It was also possible to eliminate an entire level of management in the organizational structure because as much supervision was required to perform such job.

It has an optimal level there is a limit to the extent to which many employee are willing to accept enlarged share of authority and responsibility. (IV). Job Enrichment: Vertical loading: - It means adjusting greater responsibility in the job itself and greater participation in decision making. It means adding certain planning and controlling task to be performed. Favorable results with job enrichment in term of such measure as quality, research has been also done that increased participation reduces turnover accelerate job training and improve workers flexibility.

JOB ANALYSIS:

Job analysis is the systematic process of collection and making certain judgment about all the important

Information related to the nature of job. 1. Collection of information 2. Certain judgment

APPROACHES FOR JOB INFORMATION

(OR) METHOD OF ANALYSING JOB (OR)

HOW TO COLLECT JOB INFORMATION:

Most Common Methods of Job Analysis

1. Observation Method: A job analyst observes an employee and records all his performed and non-performed task, fulfilled and un-fulfilled responsibilities and duties, methods, ways and skills used by him or her to perform various duties and his or her mental or emotional ability to handle challenges and risks. However, it seems one of the easiest methods to analyze a specific job but truth is that it is the most difficult one. It is due to the fact that every person has his own way of observing things. Different people think different and interpret the findings in different ways. Therefore, the process may involve personal biasness or likes and dislikes and may not produce genuine results.

This particular method includes three techniques: Direct observation includes direct observation and recording of behavior of an employee in different situations. Work Methods Analysis involves the study of time and motion and is specially used for assembly-line or factory workers. Critical Incident Technique is about identifying the work behaviors that result in performance.

2. Interview Method: In this method, an employee is interviewed so that it comes up with their own working styles, problems faced by them,

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use of particular skills and techniques while performing their job and insecurities and fears about their careers. This method helps interviewer know what exactly an employee thinks about its own job and responsibilities involved in it. It involves analysis of job by employee himself. In order to generate honest and true feedback or collect genuine data, questions asked during the interview should be carefully decided. And to avoid errors, it is always good to interview more than one individual to get a pool of responses. It is the time consuming and costly.

3. Questionnaire Method: Another commonly used job analysis method is getting the questionnaires filled from employees, their superiors and managers. However, this method also suffers from personal biasness. A great care should be takes while framing questions for different grades of employees. In order to get the true job-related info, management should effectively communicate it to the staff that data collected will be used for their own good. It is very important to ensure them that it won’t be used against them in anyway. If it is not done properly, it will be a sheer wastage of time, money and human resources. These are some of the most common methods of job analysis. However, there are several other specialized methods including

4. Check List Method: The check list method can be used in large number of people assigned to same or similar job. The staff group that prepares a check list for each of the jobs in the enterprise or agency must first collect enough information to prepare a meaningful check list such information can be obtained by assigning supervisor and other familiar with the work to record the task comprising each job the check list method is rather costly and somewhat impractical for small organization

5. Daily Dairy Method: The daily dairy method requires the employee to record in detail their activities throughout each day if done faithfully this technique is accurate and eliminate the error of memory recall of the questionnaire and check list devices however, it adds considerable to the work load of each production employee and best for organization to see the performance, experience of employees.

6. Conference of Expert: Such method of collecting job information is quite useful for obtaining various view point and an overall

prospective of the job. However, supervisor, staff specialists and technicians may be removed enough from work itself that they lack intimate familiarity with it details and complexities thus accuracy suffers. Thus there are six approaches for obtaining the information from the employees in the organization for job analysis as well as to remove problem and to make improvement in each of the department of the organization. All approaches have some application on some extent in various organization prevail in Pakistan.

JOB ANALYSIS AND JOB ANALYSIS

PROGRAM:

JOB ANALYSIS: Job analysis is the process of determining by observation, study and reporting pertinent information about specific job. It includes the identification of task performed the machine and equipment being utilized the material, product or service, personnel traits skill and knowledge of the worker. Simply job analysis is a procedure for obtaining relevant job information. This information is recorded basically on two farms to make permanent record.

JOB DESCRIPTION: Job description defines the duties of each job in the organization, as well as the experience and knowledge needed to carry it out. The forced analysis of job content and requirements gives us objective standard for filling each job. Job description may be consisting of following principle.

(i). Job Title and Location: These designate the job and organizational unit in which it is located some standardization of job titling is desirable.

(ii). Job Summary: This is included in most job description to give the reader a quick capsule explanation of the job. It is usually one or two sentences in length. (iii). Job Duties: A comprehensive listing of duties is included together with an indication of the frequency of occurrence of time devoted to each major duty. Always includes what the job holder does along with some identification of how he performs the task.

(iv). Machine: Tools and equipment a listing of all the tooling and work used in the job.

(v). Supervision given: For supervisory and group leader jibs, the number of person supervised and their title are giver.

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(vi). Service: Raw material used, product made or service performed.

(vii). Relation to other jobs: Identify job which person can promote into this job.

(viii). Working condition: Environmental conditions such as cold, heat, dust, noise are also included to job description.

(ix). Hazards: Typical word hazards encountered and probability of occurrence is also included in job description.

JOB SPECIFICATION: A statement of human qualification necessary to do the job. The specification is actually derived from the job description by translating the job activity and requirements into a particular skill and abilities. Job specifications usually consist of such item.

(i). Education: Identify specific kinds of reasoning, language and mathematical skills required and amount of schooling needed to provide such skill.

(ii). Experience: Experience for relative job also included in the job specification to carry out it.

(iii). Judgment: Judgment on the part of employee is also necessary to carry out its job efficiently and to make right decision.

(iv). Metal skill: It includes various mental skills such as ability to interpret complex data and ideas, resourcefulness and ability to influence other.

(v). Physical demand: It includes kind and amount of physical exertion, normal working position such as setting.

(vi). Physical skill: Physical skill examples are manual, eye and foot coordination.

(vii). Responsibility: Examples are responsibility for product, equipment and responsibility for preventing monetary loss to firm. (viii). Vocational education: This includes vocational education, apprenticeship training, prior work experience and in plant job training.

Chapter 3; Employment and Development of People :

HUMAN RESOURCE PLANNING AND ITS

REASON:

Planning: Determination of anything in advance of action. HR planning: HR planning systematically forecast an organization future demand (employee demand) for the supply of employee Definition: HR planning is the process by which MGT determines how the organization should move from its current HR position to its desired HR position. For changing these conditions they see the following questions 1. Where do we want to be? 2. Where are we now? 3. How do we get the goal? 4. How did we do it?

Reasons for Human Resource Planning/

Employment plan / Man power

planning: The importance of systematic and comprehensive manpower planning has been recognized in recent years. Traditionally management assumed that it could always obtain personnel than even it required them. Frequently formal personnel planning is essential for the enterprise that is moderate to large in size, experienced change in technology products, markets and internal organization personnel. This we can say that planning is necessary for the viability of such organization. Following are the reason by which an organization should carry on systematic human resource planning. 1. Future personnel need: Planning is very vital fat determining personnel are needs for future. It is a basic reason because it determines that how many personnel are needed in different departments such as personnel, production management and training departments. It also determined when they needed how many they needed. 2. Cope with change: HR Planning enables the firm to cope with change in competitive forces, market, and technology period and government regulations. Such changes often generate in job content, skill, demands, and number of any type of personnel. Shortage of people may be induced in some areas while surpluses in both areas may occur. 3. Strategic planning: The modern competitive enterprise engages in strategic planning such as objective, goal, program, rules, method and procedure that to be followed by organization top management evaluate the environment in which the firm operates assesses the strength and weakness of the enterprise, set objectives and determine program for implementation. Thus human resource planning is an essential component of strategic planning. 4. High talent personnel: The mix of personnel employed in great many firms have shifted to words

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that high talent occupation, manager and professional personnel. There is often a scarce of high talent people. The lead time required to hire and develop such personnel is long much effort has to be devoted to long range career development, counseling, planed work assignment and appropriate rewards many different highly specialized technical persons employ in the modern complex organization and with these people performing function that are highly interdependent of talent occurs. Hence, planning is necessary to prevent shortage of high talent. Personnel in the organization as well as provides high talent personnel to the organization. 5. Equal employment opportunities: The federal government employment opportunities and affirmative action regulate mandated that employer must agree goal for employment and up grating of protected categories of people in their work force. Affirmation action program must be implemented and monitored in regard to hiring placement, training, compensation and advancement. 6. Government contracts: Thousands of companies and nonprofit organization sell products and service to the government to bid for federal government contracts. Firm must supply detailed information on its manpower resources to be competitive; it must for plan and develop appropriate human resources through planning. 7. Foundation for personnel function: Personnel planning provide essential information for designing and implementing personnel function such as recruiting and selecting personnel, developing employees, rewarding employees, counseling employees, personnel management (transfer, promotion, layoff, discharge and termination.

SOURCES OF PEOPLE FOR

ORGANIZATION:

Sources of People: Recruitment is the development and maintenance of adequate manpower sources. It involves the creation of pool of adequate labor from which the organization can draw when it needs additional employees. There are two sources of people available for organization to recruit employees.

1. Inside sources 2. Outside sources

1. Inside Sources: It is concerned with a particular job vacancy; it can be filled by transferring or promoting another employee from the company to that job. If management wishes to fill vacancies by choosing from among present employees it may follow, following three ways.

(i). Informer search: Typically, the manager of the department having the vacancy sport to the personnel manager and together they give consideration to one or more possible candidates for the position. The manager may interview the employee who is first choice and offer the job to that individual or the manager may interview several employees and then offer to one of favors. It is most common method for keeping most available qualified employees. (ii). Skill inventory: Some organizations maintain a skill inventory which provides some detail qualification of every employee. When job openings occur the inventory can be searched to supply a list of employees having qualification that match the requirement of the position. (iii). Job posting: It involve announcing the job opening on bullet ion gives job title, a brief job description, pay grade and department. Interested employees can apply for the job. It helps the firms to meet equal employment opportunities and affirmative action requirement of an “open” recruitment system.

2. Outside Sources: If there is to be net addition to the size of worker then of Cores, someone will have to be employed from outside. Depending upon management policy, the type of job involved and the nature of labor market, management have a number of options available for obtaining people from outside the firm. (i). Employment agencies: There are number of private employment agencies. The job seeker register used for selecting personnel with the agency. Upon being hired by an employer who has listed job opening with the agency, a fee is paid to the agency. Most commonly the employer pays the fee but in some cases the employees pay. (ii). Un-solicited applicants: The typical organization recovers many applicants who live in that area and simply walk into employment office to inquire about job opening. Employees often find that this is a satisfactory way of meeting their needs for hourly paid blue-collar workers and clerical personnel. Often time technical professional and administrative type of personnel will apply for job by sending their resumes to the personnel office of well-known firm, even though those firms have not advertised any opening. (iii). Labor union: In those occupations and industries where employment is generally of short duration and intermittent labor union typically operate hiring halls. These are common in the constriction, long sharing and maritime industries.

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(iv). Professional associations: Many professional associations in the engineering, scientific accounting health care and education field operates placement services for their members. Furthermore, at their annual convention they typically provide service and facilities that enable job seeker and employer to meet. (v). Schools and Colleges: Companies especially larger firms, obtain a major portion of their managerial, professional and technical personnel via direct recruitment at colleges and schools. The typical campus interviews of one half hour constitute rough screening. The employers then invite the most promising candidates to a company facility for interview with several managers. After consolation among these manager formal job offers are made to a subject of those who visited the company premises. (vi). Advertising: Advertising in newspaper, trade magazine and professional journals is a very widely used method of recruiting. It usually generates a large pool of applicants. Not only does advertising reach that firm needed who are currently unemployed built also attract those job holders who seek better job opportunities to meet their best goals. (vii). Employee referrals: A significant percentage jobs are obtained through word of mouth and friends already employed in an organization. Some companies formalize the process of employees’ nominations, providing information on job requirement and giving reorganization to individuals who successfully recruit new employee.

SELECTION PROCESS IN DETAIL:

Selection Process: It is the process by which a firm chooses from pool of applicants the persons that best meet selection criteria. The purpose of selection process is to choose individual who are most likely to succeed on a job from these available. The success of this process depends upon the effectiveness of the personnel planning and recruitment. A successful personnel planning program identify the number and type of needed personnel. However the selection process must consist of following steps. 1. Preliminary screening from applicants: The preliminary screening and the interview which normally are conducted by the personnel department are designed to eliminate obviously unqualified applicants. In preliminary screening application banks, personnel date sheets, school records, work records and other sources are reviewed to determine the individual’s characteristics, an abilities and past performance. At this point all data on the individual performance in

previous job should be carefully screened, how rapidly he or she has progressed, what first level experience he or she has gained. 2. Preliminary interview: This is used to screen out only unsuitable and uninterested applicants who have passed the preliminary screening phase. Normally this interview which is handled by a specialist from the personnel department is exploratory. Another purpose is to fully explain, the job its requirements ad to answer any question, the applicant about him or firm. During the interview, mannerisms and other personnel characteristics that might affect job performance being carefully avoid a biased judgment. 3. Employment test: Employment test designed to provide a sample of behavior from which inference may be drawn covering future actions or job performance of individual. Since testing is method of predicting performance it must meet legal requirement of validity, freedom from bias and reliability test validity refers to the extent to which the test predict performance as measured by a specific criteria. Many type of test used in selection process such as intelligence, mantel ability, aptitude and achievement test and so on. 4. Contact of background and

employment: Reference source: Such step often has done to obtain a more objective evolution of an individual. Most prospective employer will contact individual from three reference categories, personal, academic and past employment. The thoroughness of reference check should depend upon the position being filled. Generally the higher the position the more through the verification should be for the most part, contact individuals who are personnel reference has limited value because no applicant list as a reference by someone who will not give a positive recommendation. Contacting of academic reference source also may have little value for similar reasons. Previous employees are clearly the most used objective information simply reference contacting can be done through a correspondence, telephone, or personal interview. 5. Diagnostic interview: The diagnostic interview has been often called conversation with purpose. In it all the information obtained in the previous stage of the selection process is used to learn whether the individual is best for job. Interview can be either structured or unstructured with structured interview; interview knows in advance the questions ask them and record the interviews responses structure interview provide some type of information on all applicants. Unstructured interview have no definite planned strategy. The interviewer determine the direction of

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interviewee as he or she answer question such as, “tell me about your previous job” in such method more participation is required on part of interviewee. 6. Physical examination: Often the prospective employee has cleared the preliminary hurdles many organizations require a physical examination this is not only use to determine the applicant’s eligibility for group work, health and disability but also determine if he or she is physically capable of doing job. Many organizations do not require examination until after the individual has been hired. 7. Using personnel judgment to make a

final decision: The final step in the selection process is the decision that required in selecting one individual for a job. The assumption made at this point in that there will be more than one person qualified. A value judgment must be followed by manager from the entire selection process to select the best individual. The individual who making the decision should also recognize that in some case, none of the applicants may be satisfactory if this occurs, the job should be redesigned, more money should be offered to attract more qualified candidates for the required job

DEFINE APPRAISAL AND ITS

APPROACHES:

Performance Appraisal: According to Dale S Beach it is a systematic evaluation of individual with respect to his performance on the job and its potential for development. The objective of performance appraisal should be both evaluation and development. According to George theory, it is a periodic evaluation of employees job performance measured against job’s requirement.

Methods of Appraising: The methods of performance appraisal are given below.

1. Rating Scale:

a). Personal traits and behavior scales: It is oldest method of appraisal the employee’s supervisor rates number of qualities and characteristics on a form. The qualities may be job knowledge, leadership, initiative creative ability etc. and advantage is that it is easy to construct and can be applied to wide range of job categories. It requires evaluate about different factors. It is consist of: b). Behaviorally Anchored Rating Scale: BARS is new concept, requires separate rating forms for each job it consist of:

(i). Behavior expectation scale: Here anchors are illustration that help the rater to define a superior, average a below average the behavior of employee. (ii). Behavior observation scale: Here rate reports the frequency with each employee engages in behavior specified in anchor. c). Job dimension scale: It requires constructing different scale for each job. Each characteristic for job description is a job duty its advantage are that it focus on job duty rather than personality factor it requires different scale for each job. 2. Management by Objective: It is a popular technique of appraisal the central focus is an accomplishment of individual goals which are already established at beginning of appraisal period and evaluated in end. For each objective suggested by subordinate and accepted by supervisor, a basic strategy for assessment should be planned. But it difficult to apply it to non-management position and it make comparative assessment of multiple personal rather difficult. 3. Interpersonal Comparison: It consists of such approaches: a). Ranking: The simplest method of formal systematic rating is to compare one person with all other for the purpose of placing them in a rank order of worth. It is also called paired comparison. Alternative ranking call for choosing best and protest performance than best and poorest from remaining until whole group is evaluated its disadvantage is that it does not show the amount of different between person’s facts specific component and behavior. b). Forced distribution: It based on questionable reasoning designed to prevent supervision from clustering their employees at high and of scale. The rater distribute his rating such so as to confirm to normal frequency distribution this method is quite objective for most rater. 4. Check List: This method does not evaluate employee performance rater merely reports evaluation. It consists of such approaches. a). weighted check list: In this approach series of question are presented concerning employee and his behavior. The rater checks it indicates if answer is yes or no. each question may have to assigned weight (score). This method is costly it install as separate list must be constructed for every job and it is difficult to assemble analyze and weight number of statement about employees characteristics. b). Forced choice: In this method rating contains four statements describing any aspect of employee behavior. The rater choose one statement best describing employee within each group, two statement are favorable and two not. Weights are

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assigned to each statement but rater does not know them. If rater checks favorable statement, rate gets plus credit. It is used to eliminate rater’s bias and attempt to give objective results but is expensive to install and it is poor to use if employment development is too emphasized. 5. Essay: This method merely requires rater to write a series of statement concerning on individual strengthens, weakness, past performance and potential for development. The supervisor must devote time and thought to this analysis which is a virtue and different CRITICAL INCIDENT: It is an alternative of easy in which rater records brief statements of effective and ineffective performance and behavior as observed of subordinate throughout the evaluation period. These are used in different way but can lead to overly close supervision.

PERFORMANCE APPRAISAL AND ITS

TECHNIQUE:

Performance Appraisal: The word performance describes the degree of accomplishment of the task of individual job. It indicates how well the person is fulfilling the requirement of his or her position, on the basis of result achieved. Performance appraisal includes communicating to a job holder how he or she is performing and ideally involved establishing a plan of improvement. Therefore the manner in which is the appraisal is conducted and communicated is extremely important. 1. Appraisal Method: Following are methods of performance appraisal. (i). Easy essay: The easy appraisal method merely requires the rater to write a series of statement concerning an individual strength weaknesses, past performance and potential for promotion letter written by former employees, teachers or associates concerning an individual’s qualification and past performance are example of easy appraisal latter of this kinds are frequently used in selecting candidates to fill managerial and professional jobs. (ii). Graphic rating scale: With such technique rater assesses an individual on factor such as initiative, dependability. Coop rations, attitude and quantity of work. It is one of the more widely used review methods probably the most frequently used argument against it that many raters have a tendency to evaluate everyone a title above average making comparison of their ratings difficult. Despite the eroticisms this method gives comparative data on individual and is relatively inexpressive to develop.

(iii). Field review: Field review which is sometime use with the “easy appraisal” and graphic rating scale with this method, a personnel specialist person meets with group of raters within organization unit and reviews their assessment with them such process enable the raters to identify areas in which they disagree, develop to consensus on the rating scale, and be sure that they interpret the rating standard similarly. However it can be time consuming and expensive (iv). Checklist: In the checklist method the rater does not evaluate performance but merely records it on a series of questions concerning the employee is behavior, the rater checks yes or no response. The scoring key for system is usually kept by the personnel department. The rater is generally not aware of the values associated with each question but because he or she can see the positive or negative connotation of each bias can be introduced. It is difficult to assemble such method. An additional question for drawback is that a separate listing of question must be prepared for different job categories. (v). Forced choice rating: It is most commonly used that requires the rater to choose from several seemingly equal groups of statement those that are most or least applicable to the person being reviewed the statement are then weighted or scored. Generally the weight are assigned to each statement are not know to the rater. Thus in such theory he or she lies likely to play favorites after the review describe the individual someone in the personnel department applies with weighed and develop a score individual with higher score are rated as better employee. (vi). Critical incident appraisal: With such approach the person who does the review is asked to keep a written record on incident that illustrate both positive and negative behavior of the individual being rated with such method individuals actual behavior and not personality traits is discussed. Ideally the individual who is being evaluated is given to chance to know the view of the circumstances of the incident and to know the type of behavior that the rater views as important. (vii). Work standard approach: Some firms set standard for measuring the work of employees. Generally speaking, work standard should reflect the “work standard attempt to answer the question, what is a fair dip work” or how good is good enough output standard for production worker and for those in lower level of the organization hierarchy are usually expressed as pieces per time of as time per unit standard for management professional and staff people generally of broader and are more difficult to define. Therefore the work standard

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approach is used generally for lower level employees. 2. Ranking Method: When it became necessary to compare the performance of two or more individuals, ranking methods are frequently used. (i). Alternation ranking: Here the names of individual who are to be rated are generally listed in random order down the left side of the sheet of paper. The reviewer is then asked to choose the most valuable employee on the list, crass his or her name off and put it at top of the column on the right side of the paper. The rater then asked to select and cross off the name of the “least valuable” employee move it to the bottom of the right column. The reviewer then repeats this process for the entire name on the left side of the paper. The resulting list of name on right column gives a ranking of the evaluated employees from most to least valuable. (ii). Management by Objective: M.B.O is similar to work standard approach. M.B.O is usually used for professional and managerial personnel. It is one approach to resolving the problem of basing performance appraisal of managers and professional and managerial personnel. M.B.O is an approach to performance evaluating that is based on converting the organizational goals into objective for individuals.

PROBLEMS IN RATING:

Problems in Rating: Being conducted by human, performance appraisal is frequently subject to a number of errors and weakness. Certain type of those errors is more common in some appraisal methods than others as will be revealed by the discussion to follow. Halo effect: Halo effect is the tendency of most raters to let the rating they assignee to one characteristic excessively influence their rating on all subsequent traits. Many supervisors tend to give an employee approximately the same rating on all factors. The rating scale technique is particularly susceptible to the hello effect. One way of minimizing its influence is to have the supervisor judge his entire subordinate one a single factor or trait being going on the next factor. In this way he can consider all of the employees relative to a standard or to each other on each trait. Leniency or strictness: Some supervisor have a tendency to be liberal in their rating, that is assign consistently high values or scores to their people. This is very common error in rating programs. Somewhat less common, but equally damaging to the usefulness of appraisal, is the tendency of some supervisor to give consistently low ratings. Both of these trends can rise from varying standards of

performance among supervisors and from different interpretation of what they observe in employee performance. It is due to the subjection’s of mankind. It can be partly overcome by holding meeting and are training sessions for the raters so that they reach on common agreement on just what they accept off course of the employees in department and are consistently judge higher than those department B. it is difficult to determine whether this reflect to difference in abilities and contribution on the part of one manager and strictness on the part of another manager.

BENEFITS OF TRAINING:

Training: Training is the organized procedure by which people learn knowledge and skills for a definite purpose. The objective of training is to achieve a change in the behavior of those training. Benefits of training: Training is vital and necessary activity in all organizations. It plays a large part in determining the effectiveness and efficiency of the establishment. Now we examine some of the major contribution that training can make. 1. Reduce learning time to reach

acceptable performance: By having qualified instructors and carefully controlled learning situations management in countless cases has been able to obtain shortened learning periods and higher productivity from new employees. The qualified instructors as they deliver the lecture in a situation to employee, resulting short time employee’s performance increase as were previously. The sufficient time can be utilized in other operational and other nonoperational activities such as discussion conferences, games, parties and so on. 2. Improved performance: Training applies not only to new employees but to experienced people as well to improve their efficiency to meet modern technological challenges in the industrial environment. It can help employees in increasing their level of performance on their present job assignment. With the increase of performance of employees resulting increase efficiency and improve the quality of output and operation. 3. Attitude formation: It is one of the major benefits of training to change the behavior of employees in regular of cooperating employee with each other. A common objective of training program is the molding of employee attitude to achieve support for company activities and to obtain better cooperation and greater loyalty. Attitude towards operation also increase the productivity of the organization as well as raise the quality of output or products.

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4. Add in solving operational problems: Training of both supervisory and hourly paid employees can help to reduce turnover, absenteeism, accidents and grievance rate. Supervisory training in such areas as labor relations, leadership, human relation and administration may improve supervisor subordinate relationships. Other operational problems that training can help solve are how moral, poor customs service’s excessive waste and scrap loss and poor work methods. In simple words we can say that training help to solve the day to day operational problem such as absenteeism, first aid, wages, grievance handling and do on. 5. Fill manpower needs: Training is also useful for fulfillment manpower requirements of the organization. In many case large manufacturing firm found it impossible to recruit sufficient skilled machinists and tools marks. Hence it concluded that the best way to solve the manpower problem, in the long run was to establish its own apprentice training program. 6. Benefits to employees themselves: As employees acquire new knowledge and job skills they increase their market value and earning power. The possession of useful skills enhances their value to their employer and thereby increases job security; training may also qualify them for promotion to more responsible jobs. 7. Reduction of cost: The proper training program may also decrease cost in the organization. The increase in efficiency of worker may raise the productivity so the cost will reduce. 8. Standardization: It helps standardization of method for performance of job for employee. In result quality of output will be improved. 9. Reduce supervision and direction: A well trained person is self-reliant known what to do and how to do it reduces need for content and detailed supervision.

EXPLAIN TECHNIQUE OF TRAINING:

Training procedure falls into two broad categories. 1. On-the-job-training. 2. Of-the-job-training.

Any comprehensive training system in an organization utilizes both type of training. 1. On-The-Job-Training: A system inexpensive teaching approach learning employee’s new skills and knowledge by letting them actually perform under supervision training given below. i). Job Rotation: This involves moving employees to Varity of job within organization at the same level of next immediate higher level for periods of time. This rotation may be for a shorter as one hour than or as long as year. Many organizations use this

approach during the first two or three years of employee career to formulize them with broad functional operation and process of firm. ii). Staff Development Meeting: This discusses facts of each employee’s job and ways to develop ideas for improving job performance. This meeting may be held away from the job in a retreat type atmosphere. iii). Assistant to Position: Another technique is placing someone in an assistant to position. This involve promising employees serve as staff assistant to higher skill level job for a special period of time to become more familiar with these position in organization. iv). Problem Solving Conference: These are called so solve a specific problem being experienced by a group or the organization as a whole. It involves brainstorming and other creative means to come up with mutually determined solution to basic problems. v). Special Assignment: Special assignments are special task or responsibilities given to an individual for specified period for time. The assignment may be writing a report, investigating the feasibility for a new project, process service or product preparing a news or evaluating company policy or procedure. vi). Apprentice Ship: This training refers to training providing by working under an experienced worker or master in a craft. This apprentice works along with a person skilled in craft and is taught by the person. This is often course on the job and sometime is done in off the job training. It also often includes classroom work.

2. Off-The-Job-Training: An effective training system supplement off with various forms of off the job training. Most of this type of training in classroom training as presented below. i). Lecture and Discussion: Almost all training programs, particularly outside programs utilize the lecture discussion technique. It has the advantage of being spontaneous and allows the participants to become involved in exploring concept and seeking clarification. It require professional training leader with broad expertise in the field and related under discussion. ii). Case Study: It is used with the conjunction of role playing and/or games; this technique also gives participants opportunity to solve a problem. If used without gaining or role playing it relies heavily on group discussion without participative putting themselves in actual role of individual in case. iii). Self Paled: Self paled learning technique use programmed text and exercise to give student through step by step series of learning experience. This technique presents subject matter of the

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trainee in small steps which require them to respond and immediately inform of appropriate of their response. iv). Computed Assisted Instruction: It is a form of multimedia with ever increasing advancement made in computer technology, a Varity of option exist this provide excellent delivery of text, graphic and audio over the internet allowing course to be presented online. v). Simulation: It is a kind of technique that duplicate as soon as possible the actual conditions encounter the job. A game is a farm simulation. The employee interest and motivation generally high during simulation because the action taken clearly duplicate real job condition. MASLOW’S NEEDS HEARTACHE THEORY:

Definition: Maslow’s need priority model is one of the most widely referred to theories of motivation. Abraham Maslow, a clinical psychologist, thought (1943) that a person’s motivational needs could be arranged in a hierarchical manner, starting in an assenting order from the lowest to the highest needs and concluded that once given level of needs was satisfied it caused to be motivator. The next higher level of need’s to be motivated in order to motivate the individual. Although the hierarchical aspects of Maslow’s theory are subject to question and often not accepted, his identification of basic needs has been fairly popular. In simple words five different stages of individual need consist of physiological needs, safety needs, social needs esteem needs and self-actualization need explain below. 1). Physiological Needs: These are the basic need for sustaining human life itself, need for food, drink, shelter, clothing, sleep, sex etc. man can live on bread alone, if there is no bread. But once these basic needs are satisfied they no longer motivator. 2). Safety Needs: Safety or securing needs are concerned with freedom from physical or physiological (mental) harm, danger, deprivation or threat such as loss of job, property, food clothing etc. 3). Social Needs: These are belongingness needs emanating from human instinct of affiliation or association with other. These include owners love and affection, need of mutual relations, identification with some group etc. these are the needs more of mind and spirit than of physique. 4). Esteem Needs: This set of needs represents higher level needs. These needs represent needs for self-respect, respect of others, a general feeling of being worthwhile, competence, achievement, knowledge, independence, reputation, status and recognition.

5). Self-actualization Needs: This set of higher order needs concerns with reaching one’s potential as a total human being. It is the desire to become what one is capable of becoming. Example: to maximum one’s capacity and abilities in order to accomplish something appreciable and self-fulfilling. It is need for being creative for transforming self into reality.

EXPLAIN PARTICIPATIVE MANAGEMENT

AND ITS EFFECTIVENESS:

Participative Management: Participative is form of management used to designate the process by which people contribute ideas towards the solution of problem effecting the organization and their job. The people exercise some degree of influence in the decision making process. Participation is ego and task involvement of an individual or group. It includes not only the physical contribution of the person but also his intellectual and emotional involvement in the affairs of the organization. Conditions for Effective Participation: Here we examine the factor that determine how, when and where participation can be effectively and practically employed. 1). Characteristics of Subordinate:

i). Independence Need: By need for independence it is meaning that the employee has strong drives to express themselves in work and exercise their own judgment. Thus participation appeals person having personality structure for decision making. ii). Desire to work: For participation and successes, the people must become interested in the ramification of their job, their department and their organization. iii). Intelligence and knowledge: Subordinate must possess a certain minimum amount of knowledge and intelligence for any participation program to success.

2). Organization Climates: Basically, participation is most likely to successes whom top management believes in it, encourage it and practice in it day to day relation with subordinate executives the pattern of management established at very top of an organization tends to be transmitted down through successive echelons to the lowest level supervisor. An executive tends to reinforce and support those of their subordinate who do not conform to their mode of action. 3). Problem must be appropriate: Participation should be utilized for those situation and problems that are important and what have a

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material impact upon the people involved organization. A manager should not waste the time of all his subordinates it a particular problem clearly concerns only one or two of his men. He should bring into the picture only those who have an interest and a legitimate concern for the topic of course there some occasions in which employee and managers may not themselves be directly involved in a problem area but the executive in charge value their consul or want them to be informed of what is going on.

4). Training for participation: For effective management to be success there should be a formal training program for participation. Manager needs not to learn how to delegate and so on, but also employees need to learn how to work comparatively and effectively in such situation. They must be taught just what is expected of them and how they are expected to perform. If employees have been expected to be yes men for years, they cannot suddenly transform themselves in independent, thinking and creative people. 5). Scope of authority responsibility: Manager should generally invite participation from their subordinate only on problems within their sphere of authority and responsibility. Sometime participation program are set up to create ideas and proposals at lower levels in the organization. These must be transmitted up through several levels in the structure before a final authoritative decision can be made. In this case participation may serve as a method of upward communication, as a way of uncovering information that otherwise is overlooked, as a mean of developing subordinated. In this case the supervisor of employees who developed the proposal may have to recommend it to his supervisor before it can be adopted. If the participation program is to operate in this way, it is vital but the people involved fully understand just where the final decision making authority resides. Time available: Emergency situation may prevent any discussion with other. A decision on a rush shipment of goods a tactical action in a strike, a pressing action to meet a short deadline, and an act avert serious damage to equipment or injury to personnel. EXPLAIN LEADERSHIP AND ALSO

EXPLAIN IT DIFFERENT STYLE:

Leadership: Leadership to define as influence that is art of process of influencing people so that they wide strive willing and enthusiastically towards the achievement of group goals Training

It consists of interpersonal influence, exercised in situation and directed by mean of the communication process towards achievement of specified group goal or goals. Leadership involves influencing a person or group towards the accomplishment of certain goals. Leadership is vital for determining level of productivity and behavior of subordinates. Leadership Styles: It means behavior of leader such as what to do, how he emphasizes and how he deal with subordinate. Leadership style may be explained in following ways. 1). Personal leadership: As the name implies it is practiced by personal contact, direction and motivations are given by word of mouth are rendered personally by the lender. This is common type of leadership and is usually highly effective and relatively simply to administer. 2). Non-personal leadership: It is exercised through subordinates of the leader. It is very common type of leadership being practiced in almost every enterprise. It is sometime difficult to utilize satisfactorily because the intimate influence of the leaders upon the followers is lacking and the dynamic interaction between the leaders. 3). Autocratic leadership: A leadership style characterized by leader. We find this type of style where the span of management in narrow, supervision is close, and centralization high. The autocratic style works well when the labor force is unskilled. This type of leader make decision and in courage participation form flowers. Some autocratic leaders are seen as “benevolent autocratic” although they listen considerably to their follower’s opinions before making decision, the decision is their own. They may be willing to hear and consider subordinates ideas and concerns but when the decision is to be made they may be more autocratic the benevolent. 4). Democratic leadership: The leader whose allows group discussion in decision making process. It is characterized by participation of the group and utilization of its option. They encourage open and constant communication to create a climate of understanding, honesty and trust. Democratic or participative, leader consult with subordinate on purpose action, decision making and encourage participation from them this type of leader range from the person who does not take without subordinate’s coinsurances to the one who make decision but consult with subordinate before doing so. Democratic leaders, although they make the ultimate decision, but encourage participation on the part of followers. Member of groups are respected and their advice is seriously and objectively evaluated. It is safe to say that the

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participation allowed by democratic leaders, resulting high favorable outcomes. 5). Laissez fair leadership: Leader who lets subordinate to do as they choice. In this style there is complete freedom for group or individual decision, with any participation by the leader. It is assumed people are self-motivated, that they their job move vertically without supervision. Here the leader acts primarily as a consultant available for help when asked. So they called leadership allows followers to do exactly as they please. A laissez fair leader uses his or her power very little and gives subordinate a high degree of independence. Such leaders depend largely on subordinates to set their own goals. It is mostly used in small scale enterprise that has few as well as small departments mostly headed by a single leader. 6). Charismatic leadership: An enthusiastic, self-confident leader whose personality and action influence people to behave in a certain way. They are more powerful to change behavior of subordinate them other styles. 7). Indigenous leadership: It originates from by persons from informal social organization groups. These groups are of infinite verity and forms. They constitute the interaction of one person with another at work home, school or play. DISCIPLINE AND APPROACHES TO

DISCIPLINE:

Discipline: Discipline involves the conditioning or modifying of behavior by applying reward or penalties. Discipline gives three meanings: First it states that it is training that corrects, molds, strengthens or perfects. The second meaning is that it is control gained by enforcing obedience. The third meaning is punishment. The third meaning is narrower in that it pertains only to the act of pushing wrong doers. Approaches to Discipline: There are two approaches for discipline explained below. 1. Positive or Constructive Approach: Positive approach often called constructive discipline, consist of that type of supervisory leadership that develops a willing adherence to the necessary rules and regulations of the organization and employees, both as individual and as a group they understand, believe in and support them. Discipline must take the form of positive support and reinforcement for approval actions. This is fundamental to all learning’s. Punishment may be applied for improper behavior, but this is carried out in a supportive, corrective manner.

This aims to help not harm individuals. A necessary prerequisite for the positive approach to discipline is communicating the requirements of the job and rule and regulation to the employee. Every person must know, when hired and henceforth just what management and immediate supervisor expects the performance standards must be fair, attainable with reasonable effort and consistent from job to job. Supervision must communicate rather than prohibition. In creating a climate of positive discipline the supervisor must build a sense of personnel responsibility and self-discipline. He or she applies principles of positive motivation and enlighten leadership. He recognizes individual difference among his subordinate and varying method and appeal as necessary. Example: If he or she experts’ employees to arrive at work every day on time, he or she must also arrive on time. 2. Negative Approach: This is basically a “Big stick” approach to leadership. The union movement has been very successful in providing a considerable measure of security for the worker by granting them protection against arbitrary treatment by management. Discipline penalties are often appealed through the grievance procedure. Of course unions represent only a minority of the employed person in the country, the threat of punishment is employed by many management to keep in line. Although it may be infrequent that a person is suspended the power of the bass, to impose such discharged penalties ever present in the employees minds. Written warning may be handed out to those who fail to meet the standards of production or to those who are absent from work. The basic idea in negative discipline is that it achieves only the minimum performance. It is necessary to avoid punishment, the reason why they will be punished if they break rules. The rule through fear approach puts the emphasis upon enthusiastic wholehearted cooperation.

DEFINE LOCAL UNION AND ITS IMPACT:

Local Union: It is the basic unit of organization of union. If it is a craft union, it will consist of all craftsman of a particular city, if it is industrial union; will consist of all member of a particular industry. Runs in Democratic Fashion: Officers of locals are usually elected annually members are notified of election and they propose nominees, as such word democratically. Voting is by ballot. It consists of president, vice president and various secretaries. The officers of union continue their trade and mostly receive no regular compensation. The secretary

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treasure ordinarily is paid for his services. In large unions full time electrical force is appointed. Business Agent: Most unions employ a business agent, who is full time employee of the local and worker as business manager of local. Sometime he aids in adjusting grievances of union. Shop Steward: Shop steward is elected by different depths in unionized establishments. They are not officers for union, their chief function are to handle grievances of member with the employer. Another duty of steward is to see that condition prescribed by union arrangement which the employers are observed. Impact of Union on Management: The entrance of union in organization in values complex social interactions between the two organization union and management the various ways in which the union effect management. 1). Restriction upon management’s trillium

of action: A union limits flexibility of managerial action. As management is consistently aware that they can no longer make decisions on wages, wages hours, condition of work etc. due to the presence of shop steward, who represents workers and will do anything remove any dissatisfaction or complaints. Union lesson the freedom of management to operate business as it likes. It cannot shift words, put transfer actions, can reduce work force when business is stagnant. 2). Pressure for uniformity of treatment: Union insets upon the uniformity of treatment to all employees, so as not to determine difference among employees, except for performance. Union demand that all employees on same job should receive same pay and seniority to be the criterion to be applied for job change but management claim that union introduces a leveling effect upon employee discouraging individual initiative. 3). Improved personnel policies: Union’s presence in any organization forces the management to take into account the need of its employee. Omissions or faulty in company’s labor policy tend to be noted by union officials. Some companies provide for their employees need and wants to exercise good leadership, foster, social grouping and maintain high moral. 4). One spokesman for the employees:

Management’s problem in dealing with employees is simplified as unions serves as spokesman for employees. A union leaders communicate their labor’s grievance to management, management find it, it has much to gain from joint consultation with union on subject as wording conditions plant safety, suggestions system operation.

5). Centralization of decision regarding

labor: Due to the importance of labor relations decisions top executive centralize matter authority in industrial relations department. It is because of the fact that union sometimes does not accept the word of lower management if a decision does not meets its approval. Centralized authority helps to build better relation between labor and management and better day to day leadership.

SHORT NOTES:

Management by Objective: Management by objective has been designed to overcome certain of the inherent problems of traditional appraisal system. It rarely constitutes a new way of managing performance. Major goals to enhance the superior subordinate relationship strengthen the motivational climate and improve performance. Features: The key features of M.B.O are 1). Superior and subordinate get together and jointly agree upon and list the principle duties and areas of responsibility of the individual’s job. 2). The person set his own short term performance goal in corporation with the superior. The superior guides the goal setting process to insure that it relates to the realties and need for the organization. 3). They agree upon Eritrea for measuring and evaluating performance. 4). From time to time more often than once per year the superior and subordinate get together to evaluate progress towards agreed upon goals at their meeting new goal are set for the ensuring period. 5). The superior play a supportive role. He tries on day to day basis, to help the man reach the agreed upon goal. They counsels and coaches. 6). In the appraisal process less the role of a judge and more the role of one who help the person attain the goal. 7). The process focus upon results accomplished and not upon personnel traits. M.B.O that involves mutual goal setting is most appropriate for technical, professional supervising executive personnel.

Advantages:

(i). by participating in the setting of goals. The individual acquires a stake interest in toying to meet them. (ii). Defensive feelings are minimized because the superior is not a judge but helper. (iii). Emphasis is on performance and not personality trait. (iv). The emphasis is upon the present and the future performance can be controlled.

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Disadvantages:

(i). Goal setting and goal accomplish is performance of one person with another. (ii). It does not concentrate upon identification of trait that would qualify one for a new and different jobs.

SUPERVISION:

Supervision is the leading, directing and controlling the work of other to accomplish designated objectives. A supervisor guides his or her subordinates so that they produce the desired quality and quantity of work within desired time. He must also see that their personnel needs are satisfied and that the group achieves its objective with a maximum traction and a maximum of harmony. In short, a supervisor try to know to have the group accomplished the required work and likewise try to promote need satisfaction and high moral among the employee. A superior perform a leadership role. His or her behavior motivates employees to work towards approved goals. Without leadership whether it be of the formal or the informal, a mass of people are uncoordinated and can accomplish nothing. Supervision is curial to all organized end ever. The behavior of supervisor is vital for determining the level of productivity and moral of the work group. In one research identification of the attitude and motivation of 200 accounts and engineers employed in company supervision was found to be of the chief cause for dissatisfaction. The dissatisfaction related to such aspect of supervision as in competency, poor scheduling of work, lack of teaching ability, unfriendly relation lack of support and unwillingness to listen to suggestions.

COLLECTIVE BARGAINING:

Collective bargaining has existed in the U.S.A since the early 1800. However did not develop into its present from until comparatively recently. The nature scope and methodology of collective bargaining are continued to develop even today. Collective bargaining is dynamic but in order that the reader obtain a concrete understanding of what is modern day collective bargaining the following definition is given. Collective bargaining is concerned with the relation between union representing employee and employees. It involve the process of union organization of employee, negotiation, administration, interpretation of collective agreement covering wages hours of work and other condition of employment engaging in concerted economic action and dispute settlement procedure.

The bargaining is collective in sense that chosen representative of the employee that is union act as the bargaining agent fall all employee in carrying out negotiation and dealing with management. The process may also be considered collective in the case of the corporation in which the paid professional managers represent the interest of the stock holders and the board of director in bargaining with union leaders. On the employee side, it is also collective in those common situations in which the companies have joined together in an employer association for purpose of bargaining with a union. Characteristics: It has been characterized as a form of industrial democracy and industrial government. The management union and representative sit down at the bargaining table, where thy deliberate, persuade, try to influence, argue and haggle. Eventually they reach an agreement, which they record in the form of a labor agreement contract. Further the negotiation of labor agreement is quite difference from the handling of a commercial contract of the human relation and political aspect of the labor management relationship. In short the social aspect of collective. Bargaining set it apart from the negotiation of an ordinary business contract.

WAGES CRITERIA:

The wages structure is necessary element of the organization. Wages structures are many and varied. Among these are general across the broad wages adjustment, the pay grade structure in great rate progression special rate for learners, job evaluation time study, wage incentive premium pay, cost of living clause and productivity increments. While negotiating management look upon wages primarily as a labor cost fringe benefits are likewise translated into labor cost. In determining that its wages rate should be, management seeks to pay rates equal to the average prevailing in its own labor market for each job classification. In deciding upon a wages policy management also gives consideration to its own ability to pay future business expectation productivity, the relative supply of labor available in the local labor market. Unions for their part seek to eliminate wages a factor in competition among employers whom they have organized. They prove for wage uniformity throughout an industry for the each class of work. Although this is the long range union goal, union frequently have to settle for something less. But certainly within each company the demand “equal pay for the equal work” all employees on the same job should receive the same pay. Unions often

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demand for single rate for each job employees usually want to rate change for each job in order to pay different wages to people according to variations in performance. In making its wages bargaining demands upon management union typically give consideration to the company’s perfect picture, the pattern of settlement in other companies in the same and allied industries. Change in cost of living and prevail wages levels in the area and in the industry. It also keeps careful watch of the wage settlement obtained by rival union to insure that it does as well.

GRIEVANCE HANDLING:

Grievance handling is an important subject matter of organization affairs. It is the right of employee to convey the grievance to top management either union or non-union organization. Nonunion organizations do not have formal grievance procedure although it is generally understood that employees have a right to discuss their dissatisfaction and problem with their immediate managers. But the entry of a union into an organization nearly always brings about the establishment of a grievance procedure. Ordinary an employee who wishes to obtain satisfaction and settlement of a grievance will present it to his supervisor, who will represent him in discussion with superior. The supervisor has a representative of management will ensure to the employee and steward. If they are not satisfied to this action, they may appeal the decision to successively higher level of management until a mutual agreement is reached. In processing the grievance upon through the management hierarchy higher officials in the union structure enter the concentrate each step. Basically in processing grievances to management the union is asserting that the company has not fearfully and properly administrated the term of the labor agreement. The contract establishes the right of the company, union and employees. The grievance procedure provides the means for adjusting and interpreting the way in which the labor agreement is applied in practice. Most agreement provides that union if not satisfied with top management’s answer to a grievance, can appeal it to an impractical arbitrator who will hold a hearing, listen to testimony from both side and examine briefs and documents that may be submitted by the parties. After hearing of all the facts the arbitrator will render a decision and submit a written statement of the award together with reasons. In submitting an unresolved grievances to arbitration to both parties usually agree that the arbitrator decision will be final and binding.

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