S.Y. B.COM
SEMESTER - III
HUMAN RESOURCES MANAGEMENT
(HRM)
CONTENTS
PLACEMENT INDUCTION
1. Placement with its Importance
2. Induction or orientation with its objectives
3. Internal Mobility policy
4. Transfer, promotion & Demotion
5. Types of Employee separations
PLACEMENT INDUCTION
Q.1. Explain placement with its importance
A) MEANING:
After candidate has been selected, he should be placed on a suitable job. Placement is the actual posting of an employee to a specific job, it involves assigning a specific rank & responsibility to an employee
B) FEATURES:
1) The placement decisions are taken by the line manager after the matching the qualifications of a candidate.
2) Most organizations put new reunites on probation for a given period of time after which their services are confirmed.
3) During this period, the performance of the probationer is closely monitored if the new recruits fails to adjust himself to the job & turn outs poor performance, the organization may considered his name for placement elsewhere such second placement is called differential placement.
4) Usually the employees supervision in consultation with the higher levels of line
management takes decision regarding the future placement of each employee.
5) Placement is an important human resources activity.
C) BENEFITS:
Major benefits of a placement are as follows.
1) The employee is able to show results on the job.
2) The employee is able get along with people easily.
3) The employees keep his spirits high, report for duty regularly
4) The employees avoids mistakes & accidents.
D) IMPORTANCE / SIGNIFICANCE OF PLACEMENT:-
1) t improves the morale of an employees
2) It helps in reviewing of an employees.
3) It helps in reducing accident rates.
4) It helps the candidates to work as per predetermined objectives of organization.
5) lt avoids miss fit between the candidates & job.
6) It reduces the dissatisfaction ratio among the employees.
E) CONCLUSION:
New recruits must be oriented properly so that they become productive contributions. There should be conscious & determined efforts to adapt the new recruit to the Organization's culture by conveying to the employee how things are done & what matters. when new employee know what is effected of them, they have better organizational performance & less frustration & uncertainly.
Q.2. Write a short notes on induction or orientation with its objectives & also explain induction programme in Indian companies.
A) MEANINGS:
Orientation or induction is the task of introducing the new employees to the organization & its policies procedures & rules. A typical formal orientation programme may a last a day or less in most organization. During this time, the new employees provided with information about the company, its history, its current position, the benefits for which he is eligible, leave rules, rest periods etc.
In some organizations, all this is done informally by attaching new employees to their seniors, who provide guidance on the above matters. Lectures, handbooks, flms, groups, seminars are also provided to new employees so that they can settle down quickly & resume the work.
B) OBJECTIVES:
Induction serves the following purpose..
1) Removes Fears:
A new comer steps into an organization as a stranger. He is new to the people, work
place & work environment. He is not very sure about what he is supposed to do. Induction helps a new employee to overcome such fears & perform better on the job. It assists him in knowing more about..
---> The job, its content, policies, rules and regulation.
---> The people with whom he is supposed to interact.
---> The terms and conditions of employment.
2) Creates Good Impression:
Another purpose of induction is to make the newcomer feel at home and develop a same of pride in the organization induction beeps him to...
---> Adjust and adapt to new demands of the jobs.
---> Get along with people.
---> Get off to a good start.
Through induction, a new recruit is able to see more clearly, as to..
---> what he is supposed to do,
---> how good the colleagues are,
---> how important is the job etc.
He can pose questions and seek clarifications on issues relating to his job. Induction is a positive step in the sense it leaves a good impression about the company and the people working there in the minds of new recruits. They begin to take pride in their work and are more committed to their jobs.
3) Acts as a valuable source of information:
Induction serves as a valuable source of information to new recruits. It classifies many things through employee manuals / handbook. Informal discussions with
colleagues may also clear the fog surrounding creating issues. The basic purpose of induction is to communicate specific job requirements to the employee, put him at ease and make him feel confident about his abilities.
C) STEPS IN INDUCTION PROGRAMME:
---> Welcome to the organization.
---> Explain about the company.
---> Show the location / department where the new recruit will work.
---> Give the company's manual to the new recruit.
---> Provide details about various work groups & the extent of unionism within the
company.
---> Give details about any benefits, holidays, leave, etc. emphasize the importance of attendance of prospects.
---> Clarify doubts, by encouraging the employee to come out with questions.
---> Take the employee on a guided tour of buildings, facilities, etc. hand him over to his supervisor.
D) INDUCTION TIRAINING IN INDIA:
Le's now take a look at the initiation programmes offered to new entrants by companies operating in India.
1) Aptech:
The company takes its new entrants through a structured induction training
programme. The one day programme includes a briefing on the company's market position, the business in it, its functional style, its organizational structure & its HR policies.
2) Maruti Udyog:
The company customizes its initiation programmes to suit the profile of the new recruit.
For engineers, the programme offered in four parts.
---> Familiarize with various functions & meet division neads
---> Work on shop floors
---> Work finally in departments four about 2 months, where they will eventually work.
3) Standard chartered bank:
The management trainees are picked from premium high schools & undergo induction training for 6 months. During the time of training the trainees spend time in
the various divisions & get a chance to meet each of the bank's business heads.
4) Citi bank:
In citi bank, trainees spend the first two & a half weeks learning about the bank's
three major levels of business. After spending two months on the job, the trainees attend classroom learning sessions conducted at the Asia Pacific Banking Institute in Singapore.
5) Sony India: -
There is no specific time frame given to 'new comers' to fit in the companies. Overall sony tries to bring out the best in a person thus allowing the individuals to develop their abilities.
6) Indian Shaving Products:
The company has different standards for recruits from different back grounds &
different jobs. However all new comers are kept on probation for 6 months.
7) Kpmg:
Kpmg follows different standards for new entrants on the basis of their past
experience. Further all the new comers are on probation for 6 months.
E) CONCLUSION:
In any case, the HR department & the supervision taking change of the orientation efforts, should be such that new comer is not.
1) Overburdened with too many forms.
2) Over whelmed with too much to absorb in a shot time.
3) Asked to do jobs that are complex and hazardous with a high chance of failure.
4) Pushed into the job with a sketchy orientation.
Q.3. Explain the Internal mobility policy.
A) MEANING OF INTERNAL MOBILITY:
The lateral or vertical movement (promotion, transfer, demotion, or separation) of an employee within an organization is called 'Internal Mobility'.
It may take place between jobs in various departments or divisions.
Some employees mav leave the organization for reasons such as better prospects. retirement, termination etc. such movement are known as a 'External Motilities'
B) PURPOSE OF INTERNAL MOBILITY:
The purpose of Internal Mobility may be stated thus...
1) Improved organizational effectiveness:
Organization want to be lean & clean. To end this structural defects may have to
eliminated unwanted positions removed & other jobs re-designed. Internal mobility
increase every such change within an organization.
2) Improves employee effectiveness:
Knowledge, skills & abilities can be put to use if there is a good education between
what the person has & what the organization demands. Through promotions & transfers, organizations try to bridge such gaps.
3) Adjust to changing business operations:
During a boom, there might be a phenomenal demand for new skills, finance professionals were in great have to be carried out in case of death or illness of an employee.
4) Ensure discipline:
Demotion causes loss of status & earning capacity. A demoted employee has to
learn new ways of getting things done & adjust to a new setting, demotions can be
used to ensure discipline & to correct wrong placement & job assignment
C) CONCLUSION:
The internal mobility policy & external mobility policy differs from organization to organization.
Q. 4. Explain transfer, promotion & demotion in an organization.
A) TRANSFER:
A transfer is a change in job assignment. It may involve a promotion or demotion or
no change at all in status & responsibility. A transfer has to be viewed as a change in
assignment in which an employee moves from one job to another in the same level
of hiarchy, requiring. Similar skills involving approximately same level of responsibilities, same status & same level of ray.
A transfer does not imply any promotion or demotion or change in status or responsibility
---> Purpose of transfer:
Organizations resort to transfers with a view to serve the following purpose.
1) To meet the organizational requirement:
Organizational may have to transfer employees due to change in technology changes in volume of production, production schedule, product line, quality of products changes in the job pattern caused by changes in organization structure fluctuations in the market consumptions. All these changes demand the shift in job assignments with a view to place the right man on the right job.
2) To satistfy the employee needs:
Employees may need transfers in order to satisfy their desire to work under a friendly superior in a department or region where opportunities for advancement are
bright.
3) To utilize employees better:
An employee may be transferred because management feel that his skills, experience & job knowledge could be put to better use else where.
4) To make employee more versatile:
Employees may be rolled over different jobs to expand their capabilities. Job rotation may mepare the employees for more challenging assignment in future.
5) To adjust the work force:
Workforce may be transferred from a plant where there is more work.
6) To provide relief:
Transfers may be made to give relief to employees who are overburdened or doing hazardous work for long periods.
7) To reduce conflicts:
Where employees find it dificult to get along with colleagues in a particular sections, department or location. They could be shifted to another place to reduce conflict.
8) To punish employees:
Transfers may be effected as disciplinary measures to shift employees indulging in undersirable activities to remote, for flying areas.
--> Types of transfers:
Transfers can be classified that
1) Production transfers:- Transfers caused due to changes in production.
2) Replacement transfers:- Transfers caused due to replacement of an employees working on the some job for along time.
3) Rotation transfers:- Transfers initiated to increase the versatility of employees.
4) Shift ransfers:- Transfers of an employees from one shift to another.
5) Remedial transfer:- Transfer initiated to connect the wrong placement.
6) Penal transfer:- Transfers initiated as a punishment for in disciplinary action of
employees.
---> Benefits:
Benefits associated with transfers are as follows:
1) It improves employee skills.
2) It reduces monotony, boredom location.
3) It reduces faulty placement decisions.
4) It prepare the employee for challenging assignment in future.
5) It stabilize changing work requirements in different departments or location.
6) It improves employee satisfaction & morale.
7) It also improves employer employee relations.
---> Conclusion:
Transfer have to be carried out in a systematic way, with a view to avoid allegations of discrimination & favoritism.
B) PROMOTIONS:
Promotions refers to upward movement of an employee from current job to another job that is higher in pay, responsibility & or organizational level. Promotion brings
enhanced status, better pay, increased responsibilities & better working conditions. Sometime there may be dry promotions, where a person is increase in pay. Promotion is slightly different from up gradation of an employees.
---> Purpose & Advantages of Promotions:-
1) Promotion based either on meritorious performance or continuous service has powerful motivational value
2) It forces an employee to use his knowledge, skills & abilities & become eliible fo vertical growth.
3) It inspires employees to compete & get ahead of others. Thus promotion provides paths ways for employee self developments.
4) The organization would be able to utiliza the skills & abilities of its personnel more effectively.
5) The organization would also benefits immensely because people are ready to assume challenging roles by improving their skills constantly
6) It encourages them to remain loyal & commited to their jobs & the organization
---> Bases of promotions:
Organizations adopt different bases of promotion depending upon their nature, size, and management etc. generally they may combine two or more bases of promotion. The well established bases of promotion are seniority & merit.
1) Merit based promotions:
Merit based promotions occur when an employee is promoted because of Superior performance in the current job. Merit here denotes an individuals knowledge, skills, abilities & efficiency as measured from his educational, experience, training & past employment record.
---> Advantages:
a) It motivates employees to work hard, improve their knowledge, acquire new
Skills & contribute to organization efficiency.
b) It help the employers to focus attention on talented people, recognized &
reward their meritorious contributions in an appropriate way.
c) It also inspires other employees to improve their standard of perfommance through active participation in all developmental Initiatives undertaken by the employer.
---> Criticisms:
a) It is not easy to measure merit personnel prejudices, biases & union pressure may come in the way of promoting the best perfomer.
b) When young employees get ahead of other senior employees in an organization
other employee may feel pressure & may even quit the organizaton.
c) Also past performance may not quarantee future sucoess of an employee.
2) Seniority based promotions:
Seniority refers to the relative length of service in the same organization.
---> Merits:
a) It is welcomed by unions because it is fairly objectives
b) It is easy to measure the length of service & judge the seniority.
c) There is no scope for favoritism, discrimination & subjective judgment.
d) Everyone sure that they are getting the same one day.
----> Limitations:
a) It demotivates the young & more competent employees & results in greater
employee turnover.
b) It kills zeal & interest to develop as everybody will be promoted without showing any all round growth or promise.
c) The learning capabilities may diminish beyond a certain age.
C) DEMOTION POLICY:
Demotion is the downward movement of an employees in the organizational hierarchy with lower status & pay. It is a down grading process where the employees Suffers considerable emotional & financial loss in the form of lower rank, power & status, lower pay or poor Working condiuons.
---> Causes: -
There are several factors responsible for demotions.
a) A promoted employee is unable to met the challenges posed by a new job.
b) Due to adverse business conditions, organizations may decide to lay off some & down grade other jobs
c) Demotions may be used as disciplinary tools against errant employees
---> Conclusion:-
The policy of transfers, promotions, demotions is differ from organization to organizations.
Q.5. Explain the types of employee separations in which employees leaves the organization
A. Employee leaves organization due to so many reasons. Separations can take several forms such as.
1) RESIGNATION:-
An employee may decide to quite an organization voluntarily on personal or
professional grounds such as...
---> Geting a better job,
---> Changing careers wanting to spend more time with family or
---> Leisure activities,
The decision could altematively be traced to the employee's displeasure with the current job, pay, working conditions or forced to quit the organization compulsorily or grounds of negligence of duty, insubordination, misuse of funds etc.
The resignation in this case, unlike voluntary separation is initiated by the employers. If the employee refuses to quit, he may have to face disciplinary action, When employees resignation or quit an organization, there wil be a certain amount of disruption to the normal flow of work. Replacing an experienced & talented person may not be easy in a short span of time.
2) RETIREMENT:-
Like a resignation, a retirement is normally initiated by the employee.
a) Retirement usually occurs at the end of an employee's career.
b) Retirement usually result in the retiree's receiving benefits like PF, Gratuity. etc from the organization. People who quit do not receive these benefits.
c) Finally, the organization nomally plans retirements in advance.
---> Employees are retire from service on account of two reasons.
a) Compulsory retirement:
Government, employees retailer compulsorily after attaining the age of 58 or 60.
---> In the private sector, the retirement age may well go beyond 60 depending on a
person's ability.
b) Voluntary retirement:-
In case of voluntary retirement, the normal retirement benefits are calculated &
paid to all such employees who put in a minimum qualifying service.
Sometimes the employer may encourage the employee to retire voluntarily with a view to reduce surplus staff & cut down labor costs.
---> Death:
Some employees may die during the service. When the death is caused by
occupational hazards, the employee gets compensation as per provision of workmen compensation Act 1923.
The normal separation of people from an organization owing to resignation, retirements or death is known as attrition.
---> Lay off:
A lay off is a temporary removal of an employee from the payroll of an organization due to reasons beyond the control of an employer. Global completion, reductions in product demand, changing technologies that reduce the need of worker, mangers & actuations are the primary factors behind most lay offs. The services of employees are not utilized
during the lay off periods. If the lay offs is for a temporary period the employees are likely to be called back to join the ranks again. Lay offs therefore, have to be carried out in a cautious way keeping the financial, psychological& social effect in mind.
3) RETRENCHMENT:
Retrenchment is the permanent termination of an employees services due to economic reasons such as surplus economic slow down etc. It should be noted here that termination of services on disciplinary grounds, illness, retirement, winding up of a business does not constitute retrenchment.
In respect of organizations employing 100 or more persons the industrial dispute Act
1947 makes it obligatory for the employer to give advance notice or pay equivalent
wages before he has to give three months notice before retrenching the worker & get
prior approval from the government as well.
---> Out placement: -
In this case, employees who are retrenched off may have difficulty in finding an alternative job if the market conditions are adverse.
There might be a demand for certain category of employees.
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