Chapter 1: Introduction to HRM

Definition and Concept of Human Resource Management, History of Human Resource Management, Scientific Management Approach, Human Relations Approach, Human Resources Approach, Functions of Human Resource Management , Managerial Functions, Operative Functions, Human Resource Policies and Procedures, Emerging Role of Human Resource Management, Value of Human Resources, Role of HR Executives, The Service Provider, The Executive, The Facilitator, The Consultant, The Auditor, Challenges to HR Professionals, Worker Productivity, Quality Improvement, The Changing Attitude of Workforce, The Impact of the Government, Quality of Work Life, Technology and Training, Strategic Human Resource Management.

Chapter Summary

Human resources management is one of the most complex and challenging fields of management. It deals with the people dimension in management. Over the past eighty years, various approaches to human resource management have been adopted by companies. The human resource approach which is currently in vogue, has redefined the way people are treated and managed in the organizational context.

This approach requires that employees or the work force be treated as resources and not just as factors of production (as in the scientific approach) or emotional beings with psychological needs (as in the human relations approach). Basically, HRM includes the four functions of acquiring, developing, motivating and managing the human resources. HRM functions are broadly classified into two categories – managerial functions and operative functions. Managerial functions include planning, organizing, directing and controlling.

The operative functions of HRM are related to specific activities of HRM such as recruitment, development, compensation and employee relations. HR policies are based on the organizational culture and objectives and they define the role of the HR department in an organization. They determine the relationship between the management and the employees and the way the employees are treated and valued in the organization.

Therefore, they determine the levels of employee satisfaction and motivation. HR procedures help the management in implementing the HR policies. Human resources play an important role in the development of businesses and countries. Attracting, retaining, motivating, and developing people with varied interests and expectations are a major HR challenge.

Moreover, challenges posed by the turbulent business environment, rapid technological changes, a diverse workforce, and the changing legal and governmental regulations also affect organizations. In this situation, a new role has emerged for HR function, as a value provider, as a key player in organizational working and as a contributor to organization's strategy.

The specialist role of the HR professional takes a number of forms: the auditor's role, the executive's role, the facilitator's role, the consultant's role and the service-provider's role. HRM objectives should be in alignment with the organizational objectives, and should balance them with the individual and social goals.

HR policies, framed after determining the objectives of HRM, are described as a set of proposals and directions that guide the managers in pursuit of the objectives. Today's HR professional has a lot of challenges to face in the form of changing composition and attitudes of the work force, growing emphasis on quality of products and services and the quality of work life, fast paced technological changes, government policies, etc.

He has to gear up to meet these challenges effectively by being more innovative and proactive. Strategic Human Resource Management helps the organization in the achievement of long-term and short-term goals through optimum utilization of human resources. It involves the development of human resources objectives and their alignment with the organizational objectives.

Chapter 2: Organizational Structure and HRM

Organizational Structure and Human Resource Management, Formal and Informal Organizations, Formal Organization, Informal Organization, Tall and Flat Organizational Structures, Responsibility, Authority and Accountability, Responsibility, Authority, Accountability, Line and Staff Functions, Line and Staff Relationship, Line-Staff Conflict, Human Resource Management as a Line Responsibility, Human Resource Management as a Staff Function, The Role of Human Resource Department in an Organization, Human Resource Management in Harmony, Products and Human Resources, Production and Human Resources, Marketing and Human Resources, Management Techniques and Human Resources, Organizational Structure and Human Resources

Chapter Summary

People who work together in organizations need a defined system or structure through which they relate to each other and through which there can be a coordination of their efforts. The defined relationships among the elements of an organization, namely people, tasks, structure, and information and control processes – that characterize all organizations is referred to as organizational structure.

Mechanistic structures are appropriate for static environments and organic structures for dynamic environments. Formal organization refers to the intentional structure of roles in a formally organized enterprise. Informal organization refers to any joint personal activity without conscious joint purpose, even though it contributes to joint results. There are two types of structures – tall and flat. A tall structure is characterized by a narrow span of control and a flat structure by a high span of control.

The HR department consists of various jobs as a specialist, as a facilitator, as a change agent and as a controller. The key to growing beyond a manager's time, skill and knowledge limitations is delegation – the assignment of authority and responsibility to subordinates. Responsibility is the obligation to perform the functions assigned in accordance with the directions received.

Authority refers to the right to give orders and the power to exact obedience. Another aspect of delegation is accountability, which is the process wherein the subordinate is held liable for performing those tasks which have been delegated to him, with specific authority and responsibility. Formal relations are classified into line and staff relations. Conflicts can arise between the line and staff functions.

A good understanding of line and staff relationships helps in developing harmonious line-staff relationships. HRM is a staff function but a line responsibility. The HR department plays the role of specialist; a facilitator; a change agent; and a controller. The equations between the line and staff functions have been changing in recent times, keeping with the changing business and work environment.

Chapter 3: International Human Resource Management ( Globalization)

Concept of IHRM, Approaches to IHRM, Ethnocentric Approach, Polycentric Approach, Geocentric Approach, Features of IHRM, Increased Complexity of HR Activities, Cultural Awareness and Tolerance, Stronger Relationship with Employees and their Families, Different Expectations and Requirements of Employees Across Cultures, Management of Cross-cultural Teams, Diluted Risk on the Business Front and Increased Risk on the People Front, Importance of IHRM, Factors Affecting IHRM, National Culture, Political Forces, Economic Forces, Market Forces, Technology Changes, Legal Forces, Labor Forces, Corporate Culture- Different IHRM Activities, Strategic IHRM

Chapter Summary

In recent times, the world has become a global village. Markets all over the world have become part of a well-knit network. Indian companies have also geared up to meet the challenges of operating in a global market. Management of human resources is a critical task for multinational / global companies. The number of HR activities and the complexity of those activities, increase from a local to a global firm.

International Human Resource Management is characterized by increased complexity of HR activities, cultural awareness and tolerance, stronger relationship with employees and their families, different expectations and requirements of employees across cultures, management of cross-cultural teams and diluted risk on the business front and increased risk on the people front.

Business in India and worldwide has seen some phenomenal developments after the introduction of reforms in recent times. The Indian economy has opened up new vistas of business for MNCs worldwide, including Indian MNCs. The magnitude of FDI investments in the country is an indication of the attractiveness of the Indian market. Indian MNCs have also made a mark in the international market.

Expansion of business horizons implies greater challenges in terms of human resource management. The different IHRM activities include normal HR activities like human resource planning, performance management, compensation management, training, etc., but at a higher level of complexity. The specific IHRM activities include expatriate assignment management, expatriate training, management of cross-cultural work-teams, cross-cultural training etc.

Activities like compensation management and performance management have to be tackled carefully to ensure perceived equity and the trust of employees worldwide. Strategic IHRM is an important element of the corporate strategy of a global firm. An international firm should have a global strategy that acts as a directive to all its subsidiaries operating in different parts of the world.

Strategic HRM helps a firm with global operations identify the opportunities available in the global market and respond accordingly given the strengths and weaknesses of the firm. It also helps to identify and tackle any threats specific to the industry or the manpower market.

Chapter 4: Human Resource Planning

Definition of Human Resource Planning, Objectives of Human Resource Planning, Human Resource Planning at Different Levels, The Process of Human Resource Planning, Assessing Current Human Resources and Making an Inventory, Forecasting, Matching the Inventory with Future Requirements, Managing the Forecasted Demand/ Surplus, Managing Future Demand, Managing Future Surplus, Dealing with Surplus Manpower, Growing Importance of Human Resource Planning, Current Trends

Chapter Summary

HRP is the process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time and that these people are capable of performing their tasks effectively and efficiently. This helps the organization to achieve its overall objectives. Two major ways in which societal trends affect employment is through consumer markets, which affect the demand for goods and services, and labor markets, which affect the supply of people needed to produce goods and services.

Maintaining a flexible workforce is the major challenge of the HR department and HRP helps it handle this challenge. HRP is done at different levels – corporate, intermediate, and operations levels and for short-term activities. A proper human resource planning exercise should utilize the inputs of all the departments in the organization and enjoy the support of the top management.

A human resource professional would be better equipped for human resource planning if he has a good understanding of the market dynamics, changes in the economy, organizational processes and technological developments. The process of HRP involves three key steps – assessing and making an inventory of the current human resources, forecasting the organization's human resource needs and matching the demand and supply of human resources.

Forecasting the overall human resource requirements involves studying the factors affecting the supply and estimating the increase or decrease in the external and internal supply of human resources. New hires, transfers-in, individuals returning from leave etc. increase the internal supply of human resources, while retirements, dismissals, transfers-out of the unit, lay-offs, voluntary quits, sabbaticals, prolonged illness, and deaths reduce the supply.

The matching of supply and demand can help the HR department to identify areas in which shortages and surpluses exist. When there is a need for downsizing, organizations opt for retrenchment using several techniques such as lay-offs, outplacements, leave of absence without pay, loaning, work-sharing, reduced work hours, early retirement and attrition to reduce the number of employees. Effective HRP reduces the pressures on the management and employees, as both employment and retrenchment would be well planned and phased out over a comfortable time span, avoiding unpleasant consequences.

Chapter 5: Job Analysis and Design

Concept of Job Analysis, Process of Job Analysis, Information Gathering, Job Specification Competency Determination, Developing a Job Description, Developing a Job Specification, Job Analysis Methods, Observation Method, Individual Interview Method, Group Interview Method, Questionnaire Method, Technical Conference Method, Diary Method, Functional Job Analysis, Position Analysis Questionnaire, Critical Incident Technique, Job Analysis Information, Job Description, Drafting and Maintaining Job Description, Job Specification, Uses of Job Analysis, Employment, Organization Audit, Training and Development, Performance Appraisal, Promotion and Transfer, Preventing Dissatisfaction, Compensation Management, Health and Safety, Induction, Industrial Relations, Career Planning, Succession Planning, Issues in Job Analysis, Concept of Job Design, Different Approaches to Job Design, Modern Management Techniques, Job Rotation, Job Enlargement, Job Enrichment, Some More Modern Management Techniques

Chapter Summary

Job analysis, which is also called job review or job classification, is a systematic exploration of the tasks, duties, responsibilities and accountabilities of a job. The process of job analysis involves collection of background information, selection of representative jobs to be analyzed, collection of job analysis information, development of a job description and job specification.

The formal and systematic methods of job analysis are functional job analysis, the position analysis questionnaire, and the critical incident technique. Job analysis is useful for preparing job descriptions and job specifications which are the basis for most of the HR activities like recruitment, training, performance appraisal, industrial relations and wage and salary administration.

Job design determines the way in which work should be performed which, in turn, affects the degree of authority of an employee over the work; the scope of decision-making by the employee; the number of tasks an employee has to perform; and employee satisfaction. The main objectives of job design are to meet organization requirements such as higher productivity, operational efficiency and quality; and to simultaneously satisfy the psychological and sociological needs of the employees.

There are different approaches to job design – the engineering approach, the human relations approach, the job characteristics approach and the sociotechnical approach. An effectively designed job enhances employee productivity and satisfaction. Modern management has many job design options, which can transform monotonous and routine jobs into more challenging and motivating ones. Some of the popular job design options are job rotation, job enlargement and job enrichment.

Chapter 6 : Recruitment

Concept of Recruitment, Factors Affecting Recruitment, Organizational Factors, Environmental Factors, Recruitment Policy, Sources of Recruitment, Internal Search, External Sources, Need for Flexible and Proactive Recruitment Policy, Evaluation of Recruitment Program

Chapter Summary

Recruitment is the process of seeking and attracting the right kind of people to apply for a job in an organization. Recruitment in any organization is effected by various internal and external factors. Internal factors include the recruitment policy, time and cost constraints etc. External factors include the situation in the economy, the job market, the industry etc.

The recruitment policy of an organization effectively defines and determines the pattern, the sources and the methods of recruitment of the firm. A good recruitment policy is based on the organization's objectives, complies with the government policy, and results in successful placements in the organization at the minimum cost and time. It provides the basic framework in the form of guidelines, procedures and sources for recruitment.

A good recruitment policy has to be flexible and proactively respond to the changing market situations. There are various sources of recruitment available for an organization. The organization has to choose the most suitable ones depending on its recruitment needs and its recruitment policy. The different sources are internal sources (recruitment from within the organization) and external sources like campus recruitments, advertisements, employment agencies, etc.

The organization has to take into consideration the relevance and effectiveness of each source before selecting the sources for its recruitment program. Recruitment strategies, objectives, policies and the sources and methods need to be evaluated continuously to ensure their alignment with corporate strategies, objectives, and policies. The effectiveness and efficiency of the recruitment tools and sources can also be evaluated from time to time and changes made, to match the current and future recruitment needs of the organization.

Chapter 7 : Selection

Concept of Selection, The Selection Process, Selection Method Standards, Reliability, Validity, Generalizability, Utility, Legality, Application Forms, Evaluation of Application Forms, Ethical Issues in Application Form Design, Selection Tests, Intelligence Tests, Aptitude Tests, Achievement Tests, Situational Tests, Interest Tests, Personality Tests, Polygraph Tests, Graphology, Interviews, Preliminary Interview, Selection Interview, Decision Making Interview, The Interview Process, Preparation, Setting, Conduct of Interview, Choosing an Interview, Evaluation, Reference Checks, Medical Examinations, Placement

Chapter Summary

Selection is the process of evaluating the qualifications, experience, skill, knowledge, etc, of an applicant in relation to the requirements of the job to determine his suitability for the job. The selection procedure is concerned with securing relevant information from applicants and selecting the most suitable among them, based on an assessment of how successful the employee would be in the job, if he were placed in the vacant position.

The selection process has two basic objectives: (a) To predict which applicant would be the most successful if selected for the job, and (b) To sell the organization and the job to the right candidate. The selection process is based on the organizational objectives, the job specification and the recruitment policy of the organization. The various selection processes are initial screening, application forms, selection tests, group discussions, interviews and reference checks.

To facilitate a near accurate prediction of an applicant's success on the job, the selection methods should meet several generic standards of reliability, validity, generalizability, utility and legality. The application form is a formal record of an individual's application for employment. It is usually used in the preliminary screening of job applicants.

The filled-in application forms provide pertinent information about the individual and are used in the job interview and for reference checks to determine the applicant's suitability for employment. There are two methods of evaluating these forms – the clinical method and the weighted method. Selection tests, which are widely used, include intelligence tests, aptitude tests, achievement tests, situational tests, interest tests, and personality tests.

Interviews help managers to fill the gaps in the information obtained through the application blanks and tests. Interviews also enable the management to make an impact on the job applicant's view of the organization, apart from assessing his job-related behavior and attitude. Interviews may be classified as preliminary, selection and decision-making, based on their timing and purpose.

The process of interviewing consists of several steps such as preparation for the interview, ensuring a setting, and conducting, closing and evaluating. The selection process also uses background investigation or reference checks to check the authenticity of the information provided by the applicant. Finally, after an applicant is selected, the offer is made to him and on acceptance, the placement process starts.

Chapter 8: Socialization

Concept of Orientation- Objectives of Induction/Orientation, Role of Organizational Culture in Orientation, Roles, Values, Norms, The Process of Socialization, Assumptions, Model of Socialization Process, Different Socialization Strategies, Formal or Informal, Individual or Collective, Sequential or Non-sequential, Fixed or Variable, Tournament or Contest, Serial or Disjunctive, Investiture or Divestiture- Existing Employee Socialization

Chapter Summary

When new employees enter an organization they feel out of place because of the new surroundings, new boss and new co-workers. Hence, it is the responsibility of the management to orient the employees and to make the process of socialization smooth. This will ensure that the new employees adapt to the organizational culture as soon as possible. The process of adaptation is commonly termed induction or socialization.

The socialization process is not confined to employees entering new organizations. It is also important for employees moving within the organization as a result of lateral transfers and promotions. Orientation is only a small part of the overall socialization program. The process of orientation includes introduction of the new employee to the organization and to his work unit and supplementing the information given to him during recruitment and selection.

An organization's orientation program should make a new employee familiar with the organization's history, philosophy, objectives, procedures and rules. To understand the concept of socialization, a look at organization culture and its underlying concepts – roles, values, and norms – is necessary. A new employee, to fit into the organization, must understand the role he has to play in that particular job, the values of the organization that he has to uphold and the norms set by his peer group that he has to conform to.

The socialization process is based on some general assumptions. They are: The process of socialization has an influence on the performance of an employee; an effective socialization process ensures that a new employee fits well into the organization, socialization helps to handle new employee anxiety and the process of socialization requires the involvement of co-workers and the work environment. Socialization can be conceptualized as a process consisting of three stages – Pre-arrival, Encounter, and Metamorphosis.

The process of socialization affects the new employee's work productivity, commitment to the organization's objectives and his decision to stay with the organization. They are various alternatives that a manager can consider when designing effective socialization strategies. They are Formal or Informal, Individual or Collective, Sequential or Non-sequential, Fixed or Variable, Tournament or Contest, Serial or Disjunctive, Investiture or Divestiture Socialization Strategies. The human resource manager must consider the various alternatives and their influence while designing the appropriate program for the organization. Socialization is an ongoing process and should not be stopped after the initial orientation program. Given the changing business environment it is always important to equip employees with the right skills to perform effectively.

Chapter 10: Performance Appraisal

Concept of Performance Appraisal, Objectives of Performance Appraisal, The Appraisal Process, The Appraisers, Self Appraisal, Supervisors, Peers, Customers, Clients, Subordinates, Performance Appraisal Methods, Management by Objectives, Graphic Rating Method, Work Standards Approach, Essay Appraisal, Critical Incident Method, Forced Choice Rating Method, Point Allocation Method, Ranking Method, Checklist, Behaviorally Anchored Rating Scale, 360 Degree Performance Appraisal, Team Appraisals, Balanced Scorecards, The Appraisal Interview, Challenges of Appraisal Interview, Pitfalls in Performance Appraisal, Uses of Performance Appraisal, Ethics of Performance Appraisal

Chapter Summary

Performance appraisal measures the qualitative and quantitative aspects of job performance. An appraisal evaluates not only the employee's performance but also his potential for development. The primary objectives of an appraisal are – to assess past performance, to identify training needs, to set and agree on future objectives and standards, and to facilitate the achievement of these goals.

In many situations, the appraiser is the supervisor of the person who is to be rated. However, companies may also use multiple raters to evaluate performances (360 degree appraisal). Peer and self-evaluations are on the increase, as are customer or client evaluations. Some appraisal systems use subordinate or reverse appraisals and team rating techniques.

Different methods are used for appraising performance. In the straight ranking method, employees are ranked from the best to the worst on the basis of their performance. Management by Objectives involves an agreement between a superior and his employee on the employee's performance objectives for a specified period and a periodic review of the extent to which the employee is able to accomplish those objectives.

Under the graphic rating scale method, an employee's performance is rated on a scale ranging from high to low. In the checklist approach, the rate is given a set of positive or negative descriptive statements that best describe employee performance and characteristics. When weights are assigned to each of the items on the checklist, depending on the importance of each item, it is known as a weighted checklist.

In the essay method of appraisal, the appraiser writes an essay describing an employee's past performance, strengths, and weaknesses, potential and provides suggestions for future development. Under the critical incident method, the appraiser evaluates performance on the basis of a record of unusually favorable or unfavorable instances of the employee's performance.

The forced choice method is a kind of checklist, which requires the appraiser to rank the statements from the one that best describes the employee to the one that describes him least well. Weights (which are unknown to the appraiser) are attached to these statements, which help in evaluation. Under the point allocation method, the rater has to allocate a fixed number of points among all the employees in a group.

This method brings out the relative differences in the performance of employees. Each employee is compared with all the other employees in the same group in the paired comparison method. Among the modern methods, BARS or the Behaviorally Anchored Rating Scale has scale values attached to a group of anchors under each dimension and the employee is rated on the scale.

This system demands active participation of both the appraiser and the appraisee. The 360 degree appraisal method reduces subjectivity in that the individual is appraised by his peers, customers/clients and subordinates apart from the supervisor. The balanced scorecard method, which is being adopted by more and more corporate, helps align individual efforts to organizational goals and objectives.

The team appraisal system involves the appraisal of each team member by every other member of the team, to improve the overall effectiveness of the team. The appraisal interview is characterized by performance-related feedback which is intended to improve employee performance and promote development.

Some rater biases that impede objective evaluation are the halo effect, the error of central tendency, leniency and strictness biases, cultural bias, stereotyping, perceptual set, and the recency and primacy effects. Such biases can be reduced by providing suitable training and feedback to raters, and through proper selection of performance appraisal techniques. A performance appraisal system also acts as an audit and helps in revamping HR processes and systems for improved performance.

Chapter 11 : Employee Training and Management Development

Definition and Purpose of Training, Improving Employee Performance, Updating Employee Skills, Avoiding Managerial Obsolescence, Preparing for Promotion and Managerial Succession, Retaining and Motivating Employees, Creating an Efficient and Effective Organization, Assessing Training Needs, Areas of Training, Importance of Learning, Employee Training Methods, On-the-Job Training, Off-the-Job Training, Evaluation of the Training Programme, Training and Development, Concept of Management Development, Work Roles of Managers, Objectives of Management Development, Process of Management Development, Management Development Methods, On-the-Job Development Methods, Off-the-Job Development Methods, Evaluating a Management Development Programme

Chapter Summary

Training is defined as the systematic development of the knowledge, skills and attitudes required by an individual to perform a given task or job successfully. Training aims at improving the organization's performance through the enhanced performance of its employees. While training helps employees do their current jobs, development prepares individuals to handle future responsibilities.

The major purposes of training are improving employee performance, updating employee skills, avoiding managerial obsolescence, preparing for promotion and managerial succession, and satisfying personal growth needs. Training needs are determined based on the organization's and the employee's needs.

Organizations provide training to employees in the areas of company policies and procedures, specific skills, human relations, and managerial skills. Some organizations also provide apprentice training. There are two types of training methods - on-the-job and off-the-job. In on-the-job training methods, an employee is given training in the actual work situation, where he learns by doing and through direct experience.

Some of the on-the-job methods of training are job instruction training, apprenticeship and coaching, job rotation, and committee assignments. Off-the-job training refers to the training given to an employee away from the immediate work area. Here the employee focuses his attention upon learning from the trainer's lectures or through simulated exercises.

Off-the-job training methods include classroom lectures; various simulation exercises like case exercises, experiential exercises, computer modeling, vestibule training and role playing; and programmed instruction. Systematic evaluation of training activities helps in evaluating the success of the training program.

Training increases productivity, reduces the level of supervision required, reduces accidents related to work and increases organizational stability. Apart from training, an organization should also concentrate on management development. Management development is a systematic process of growth and development by which employees develop their skills and abilities to manage.

It is future oriented and is concerned with education of the employees. Management development improves a manager's ability to understand problems and arrive at solutions. It helps the manager in effective handling of his different work roles like planning, monitoring performance, communication and development. Management development programs are designed to meet specific objectives, which contribute to both employee and organizational effectiveness.

There are several steps in the process of management development. These include reviewing organizational objectives, evaluating the organization's current management resources, determining individual development needs, designing and implementing development programs, and finally, evaluating the effectiveness of these programs.

The two categories of development methods are on-the-job development, and off-the-job development. Some of the widely used on-the-job development methods are: coaching, job rotation, under study assignments and multiple management. Off-the-job development methods include simulation exercises, sensitivity training, transactional analysis, conferences and lectures. To ensure the success of the management development programs, they have to be evaluated from time to time.

Chapter 13: Occupational Safety and Health

Causes of Safety and Health Problems at the Work Place, Lack of Education and Training, Human Errors, Technical Errors, Psychological Problems, Occupational Hazards and Risks, Provisions to Prevent Accidents at the Work Place, Prerequisites for an Effective Safety and Health Policy, Accident Prevention in the Work Place, Stress and its Consequences on Employee Performance, Causes for Employee Stress, Handling Employee Stress, Avoiding Burnout, Challenges in the Service Sector, Importance of Ergonomics

Chapter Summary

Every year, a number of workers get injured or even lose their lives because of accidents at the workplace caused by the carelessness of the employer or the employee. It is important to identify the causes of accidents to prevent them from occurring in future. The main causes of accidents are lack of education and training, human errors, technical errors, psychological problems, occupational hazards and risks.

After identifying the causes of accidents, organization should take steps to prevent them. Education and training of employees plays an important role in understanding the causes of accidents and preventing them. Further, frequent inspections by the top management will enable them to know the practical problems being faced by the employees so that they can be tackled effectively.

This will also enable employees to air their grievances to the management as and when a problem arises. Another important aspect of preventing accidents is analyzing and tabulating the causes for accidents. This analysis will give a clear idea as to the location or situation of a large number of accidents and the steps that an organization should take to reduce these accidents.

Other measures to reduce accidents include conducting employee wellness programs, designing and conducting a well organized health program. Stress at the workplace is a serious concern in most organizations. A decrease in productivity and increase in abseentism results in huge losses for organizations. It is the responsibility of the employees as well as the organization to reduce stress at the workplace.

When stress reaches an alarming level, it results in burnout where an individual experiences excessive physical or mental exhaustion. It is important to diagnose an individual for stress before it reaches this alarming stage of burnout. In the present day service sectors like ITES, there are new health problems cropping up like the muscular-skeletal disorders (MSDs).

These disorders arise because of repeated use of the keyboard and the mouse. In India, companies do not recognize the seriousness of these problems. Hence it is high time that legislation is passed regarding occupational health in the service industries.

Chapter 14: Grievance Handling

Concept of Grievance, Causes of Grievance, Need for a Grievance Redressal Procedure, Effective Grievance Redressal, Steps in a Grievance Redressal Procedure, Grievance Redressal Procedure in Unionized Organizations, Legislative Aspects of the Grievance Redressal Procedure in India, Conflict Resolution

Chapter Summary

A grievance is a sign of an employee's discontentment with his job or his relationship with his colleagues. Grievances generally arise out of the day-to-day working relations in an organization. An employee or a trade union protests against an act or policy of the management that they consider as violating employee's rights.

One of the effective ways of minimizing and eliminating the source of an employee's grievance is by having an ‘open door policy'. An ‘open door policy'facilitates upward communication in the organization where employees can walk into a superiors'cabin at any time and express their grievances. The National Commission on Labor suggested a Model Grievance Procedure, which lays down the sequence of steps to be taken whenever a grievance is expressed.

Conflict occurs when two or more people or parties perceive an incompatibility in their goals or expectations. There are seven methods for achieving reconciliation of conflict. These methods are win-lose, withdrawal and retreat from argument, smoothing and playing down the difference, arbitration, mediation, compromise and problem solving. Of all these methods ‘problem-solving'method is most likely to bring about a win-win situation.

Chapter 15 : Disciplinary Action

Definition and Concept of Discipline, Aims and Objectives of Discipline, Forms and Types of Discipline, Acts of Indiscipline or Misconduct, Principles of Maintaining Discipline, Mc Gregor's Red Hot Stove Rule, Disciplinary Procedure, Approaches to Discipline, Preventive Discipline, Positive Discipline, Disciplinary Actions, Verbal Warning, Written Warning, Suspension, Demotion, Pay cut, Dismissal, Code of Discipline in Indian Industry, Industrial Employment Standing Orders Act, 1946

Chapter Summary

Some employees, regardless of an organization's efforts at selection, socialization, job design, performance standards and reward practices, create discipline problems for the management. Handling these discipline problems is a sensitive and challenging task for a human resource manager.

Employees of an organization are expected to conduct themselves in accordance with the organization's rules and standards of acceptable behavior. Employees who cannot be motivated to maintain such discipline require some degree of extrinsic disciplinary action. The primary objective of disciplinary procedure is to motivate an employee to conform to the organization's performance standards.

The disciplinary problems faced by the HR managers can be classified into four categories – attendance, on-the-job behavior, dishonesty, and off-the-job behavior. There are three approaches – incorrect discipline, preventive discipline, and positive discipline – to discipline the employees. One effective way to approach the disciplinary process is to follow the Red Hot Stove Rule, which suggests that administering discipline is more like touching a hot stove.

The various disciplinary actions that are administered are verbal warning, written warning, suspension, pay cut, demotion, and dismissal. The severity of the disciplinary action should be in accordance with the severity of the misconduct. The Government of India enacted the Industrial Employment Standing Orders Act in 1946 to ensure uniform and stable conditions of employment.

Chapter 18: Quality of Work Life

Definition and concept of Quality of Work Life, Methods to Improve QWL, Flextime, Flexiplace, Alternative Work Schedules, Part-time Employment, Compressed Work Week, Job Enrichment, Job Rotation, Job Enlargement, Autonomous Work Groups / Self-managed Teams, Socio-Technical Systems, Benefits of QWL Programs, Challenges in Implementing QWL Programs.

Chapter Summary

Quality of work life (QWL) is viewed as an alternative to the control approach of managing people. The QWL approach considers people as an ‘asset'to the organization rather than as ‘costs'. It believes that people perform better when they are allowed to participate in managing their work and make decisions.

This approach motivates people by satisfying not only their economic needs but also their social and psychological ones. To satisfy the new generation workforce, organizations need to concentrate on job designs and organization of work. Further, today's workforce is realizing the importance of relationships and is trying to strike a balance between career and personal lives.

Successful organizations support and provide facilities to their people to help them to balance the scales. In this process, organizations are coming up with new and innovative ideas to improve the quality of work and quality of work life of every individual in the organization. Various programs like flex time, alternative work schedules, compressed work weeks, telecommuting etc., are being adopted by these organizations.

Technological advances further help organizations to implement these programs successfully. Organizations are enjoying the fruits of implementing QWL programs in the form of increased productivity, and an efficient, satisfied, and committed workforce which aims to achieve organizational objectives. The future work world will also have more women entrepreneurs and they will encourage and adopt QWL programs.