1. 1. PERFORMANCE APPRAISAL
6. CAREER PLANNING AND DEVELOPMENT
7. EMPLOYEE TRAINING
8. COLLECTIVE BARGAINING
9. INDUSTRIAL CONFLICTS
10. PROMOTION, TRANSFER, DEMOTION
11. PARTICIPATIVE MANAGEMENT
2. PERFORMANCE APPRAISAL
MEANING OF PERFORMANCE APPRAISAL
performance appraisal may be understood as the assessment of individual’s
performance in a systematic way, the performance being measured against factors
such as job knowledge, quality and quantity output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility, health and the like.
Assessment should be confined to past performance alone. Potentials of the employee
for future performance must also be assessed.
Performance appraisal is a method of evaluating the behavior of employees in the
work spot, normally including both the quantitative and qualitative aspect of job
performance. Performances here refer to the degree of accomplishment of the tasks
that make up an individual’s job. It indicates how well an individual is fulfilling the
job demands. Often the term is confused with effort, but performance is always
measured in terms of result and not efforts.
A formal definition of performance appraisal is “it is the systematic evaluation of the
individual with respect to his or her performance on the job and his or her potential
FEATURES OF PERFORMANCE APPRAISAL
Performance appraisal is the systematic description of an employee’s job relevant
strengths and weaknesses.
The basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.
Appraisals are arranged periodically according to a definite plan.
Performance appraisal is not job evaluation. It refers to how well someone is doing
the assigned job. Job evaluation determines how much a job is worth to the
organization and there for, what range of pay should be assigned to the job.
3. Performance appraisal is a continuous process in every large scale organization.
PROCESS OF PERFORMANCE APPRAISAL
Performance appraisal is planned, developed and implemented through a series of
MEASUREMENT OF ACTUAL
COMPARISON OF ACTUAL
PERFORMANCE WITH THE
FOLLOW UP ACTIONS
1) Establish Performance Standards.
Appraisal systems require performance standards, which serve as benchmarks against
which performance is measured. In order to be useful, standards should relate to the
desired results of each job. Appraisals must have a clear- cut criteria. Performance
standards must be both to the appraiser and the appraise. The performance standards
of goals must be developed after a thorough analysis of the job. Goals must be written
down. They must be measurable within certain time and cost considerations.
4. 2) Communicate the Standards.
Performance appraisal involves attract two parties; the appraiser who does the
appraisal and the appraise whose performance is being evaluated. Both are expected
to do certain things. The appraiser should prepare job descriptions clearly, help
appraise set his goals and targets; analysis results objectively; offer coaching and
guidance to appraise whenever required and reward good results. The appraiser
should be very clear about what he is doing and why he is doing. For this purpose, the
performance standards must be communicated to appraise and their reactions are
noted initially. These standards must be revised or modified as and when required.
3) Measure Actual Performance.
After the performance standards are set and accepted, the next step is to measure
actual performance. This requires the use of dependable performance measures, the
ratings used to evaluate performance. Performance measures in order to be helpful
must be easy to use, reliable and report on the critical behaviors that determine
performance. Generally, managers regarding how to measure actual performance use
four common sources of information: personal observation, statistical reports, oral
reports and written reports.
4) Compare Actual Performance with Standards and Discuss the Appraisal.
Actual performance may be better than expected and sometimes it may even go off
the track. The assessment of another person's contribution and ability is not an easy
task. It has serious emotional overtones as it affects the self-esteem of the appraise.
Any appraisal asked on subjective criteria is likely to be questioned by the appraisers
and leave him quite dejected and unhappy when the appraisal turns out to be negative.
5) Taking Corrective Action, if Necessary.
Corrective action is of two types: The one, which puts out the fires immediately and
the other one, which strikes at he root of the problems permanently. Immediate action
sets things right and get things back or track, whereas the basic corrective action gets
to the source of deviations and seems to adjust the difference permanently. Basic
corrective step seek to find out how and why performance deviate.
5. METHODS OF PERFORMANCE APPRAISAL:
Methods of Performance Appraisal
A) Traditional Methods B) Modern Methods
Confidential report 1. Human resource accounting
Ranking 2. management by objective
Graphical rating scale 3. Assessment centre
Checklists 4. BARS( Behaviorally
Forced distribution anchored rating scale )
Confidential report method
It is mostly used in government organizations. It is a descriptive report generally
prepared at the end of the year, by the employee’s immediate superior. The report
highlights the strengths, weaknesses, major mistakes, merits, good work done etc. of
the subordinate. The impression of the superior about the superior is merely recorded
here. It does not offer any feedback to appraise. It is a narrative method of
performance appraisal since the report is not made public and hence no freedom is
available, the subjective analysis of the superior is likely to be hotly contested.
This is relatively easy method of performance evaluation. In it, the ranking of an
employee in a work group is against that of another employee. The relative position of
each employee is tested in terms of his or her numerical rank, for example, when there
are five employees (A,B,C,D,E) to be compared, then A’s performance is compared
with that of B’s and decision is arrived at as to whose is the better or worst. Next, B is
6. also compares with all others. Since A is already compared with B, this time B is to
be compared with only C, D, and E In this evaluation is asked to rate the employees
from highest to lowest on some overall criterion. It is easier to rank the best and the
worst employee, it is very difficult to rank the average employees.
Graphical rating scale
It is the oldest and the most commonly used method of performance in this, a printed
form is used to evaluate the performance of an employee. Four to twelve factors are
selected, depending upon the category to which the employee belongs. Some of these
factors are quantity of out put, quality of out put, initiative, integrity, dependability
etc. these factors and their degrees are marked on a graph paper provided in the form.
The rater has merely to check on the scale where he thinks the employee belongs.
Checklists and weighted checklists
The checklist is a simple rating technique in which the supervisor is given a list of
statement or world and ask to check statement representing the characteristic and
performance of each employee a checklist represents a set of objective statement
about the employee and his behavior. A more recent variation of the checklist is
weighted list. Under this the value of each question may be weighted more heavily
The following are sample questions in the checklist:
- Is the employee is really interested in the task assigned? Yes/ No
- Is he respected of his colleagues? Yes/ No
- Does he follow instructions properly? Yes/ No
- Does he give respect to his superiors? Yes/ No
- Does he make mistakes frequently? Yes/ No
A rating score from the checklist helps the manager in evaluation of the performance
of the employee.
Forced distribution method
It was developed to eliminate the bias and the preponderance of high ratings that
might occur in some organizations. Its primary purpose is the correct tendency of the
7. rates to give consistently high and low ratings to all employees. This method makes
those of several sets of pair phases, two of which are positive and two of them are
negative and the rates is asked to indicate which of the four phrase is the most or least
descriptive of a particular employee. Actually the statement items are grounded in
such a way that the rater cannot which statement applies to the most effective
employee. The favorable qualities earn a plus credit and the unfavorable ones earn the
severest. In this the overall objectivity is increased in the employee’s performance
because the rater does not know how high or low he is evaluating the individual, as he
has no access to the storing key.
Critical incident method
The manager prepares test of statements of every effective and ineffective
behavior of an employee. These critical incidents or events represent the outstanding
poor behavior of the employees. The manager prepares records of the critical
incidents of the worker’s behavior. At the end of the rating period, the recorded
critical incidents are used in the evaluation of the workers’ performance.
Under this method the rater is asked to express the strong as well as the weak points
of the employee’s behavior. This technique is normally used with a combination of
the graphical rating scale because the rater an elaborately present the scale by
sustaining an explanation for his rating. In it, the rater considers the following factors:
Job knowledge and potential of the employee.
Employees understanding about the company’s programmes, policies, objective, etc.
The employees general planning, organizing and controlling ability.
The employee’s relation with the co-workers and superiors.
The attitude and perceptions of the worker, in general.
In this method an employee is appraised by a group of appraisers. This group consists
of the immediate supervisor of the employee, other supervisors who have close
contact with employee’s work, manager or head of department or consultant. The
head of department or manager may be the chairman of the group and the supervisor
may act as the coordinate for the group activities. The immediate supervisor enlighten
8. other members about the job characteristics, demand, standards or performance etc.
then the group appraise the performance of the employee, compares the performance
with the standards, finds out the deviation, discusses the reasons, therefore suggests
ways for improvement of performance, prepares an action plan, studies the need for
change in the job analysis and standards and recommends changes, if necessary. This
method eliminates “personal bias” to a large extent, as performance is evaluated by
multiple rates. However, it is very time consuming process.
B) Modern Methods:
Human resource accounting
HRA is a sophisticated way to measure in financial terms the effectiveness of the
personal manager activities and the use of people in an organization. It is process of
accounting people as an organization resource. It tries to place a value on the
organizational human resources as assets and not as expenses. This method shows the
investment the organization makes in the people and how the value of these people
change over a time. The acquisition of employee is compared with the replacement
cost from time to time. In brief, in this method the employees’ performance is
evaluated in terms of costs and contributions of employees.
Management by objectives
It is the modern method of evaluating the performance of personnel. Managers have
become increasingly aware that the traditional performance evaluation systems are
characterized by facing goals. The concept of MBO is actually the outcome the
pioneering work of Drucker, Mcgreger and Odioine in management science. MBO
can be described as the process whereby the superior and subordinate manager of an
organization jointly identify its common goals, each individual’s areas of operations,
responsibility in terms of results expected of him and use these measures as a guide
for operating the unit and assessing the contributions of each of its members. MBO
thus represents more than an evaluation process.
The MBO can be described in four steps:
The first step is to establish the goals each subordinate is to attain. The goals typically
refer to the desired outcome to be achieved. The goals can be then used to evaluate
the employee performance
9. The second step involves setting of the performance standard fro the subordinates in a
previously arranged time period.
In the third step, the actual level of goal attainment is compared with the goals agreed
upon. The evaluator explores the reasons or the goals that were not met and the goals
that were exceeded. This step helps to determine the training needs. It also alerts the
superior of the conditions that may affect but over which the subordinate has no
The final step involves establishing new goals and, possibly, new strategies for goals
that previously not attained. At this point, subordinate and superior involvement in the
goal setting may change. Subordinates who successively reach the established goals
may be allowed to participate more in the goal setting process the next time. The
process is repeated.
In this approach individuals from various departments are brought together to
spend two or three days working on an individual or a group assignment similar to the
ones they would be handling when promoted. Observers rank the performance of each
and every participant in order to merit since assessment centers are basically meant
for evaluating the potential of candidates to be considered for promotion, training on
development, they offer an excellent means for conducting evaluation process in an
objective way. All assesses get an equal opportunity to show their talents and
capabilities based on merit.
Behaviorally anchored rating scale
This method is also known as behavioral expectation scale. This method represent he
latest innovation in the performance appraisal. It is the combination of the rating scale
and critical incident techniques of employee performance evaluation. The critical
incidents serve as the anchor statement on a scale and the rating form usually contains
six to eight specifically defined performance dimensions.
10. 360° PERFORMANCE APPRAISAL
The appraisal may be any person who has thorough knowledge about the job contents,
contents to be appraised, standards of contents and who observes the employee's by
performing a job. The appraisal should be capable of determining what is more
important and what is relatively less important. He should prepare reports and made
judgments without bias. Typical appraisals are supervisors, peers. Subordinates,
employees themselves, user of service and consultants. Performance Appraisal by all
these parties is called 360° Performance Appraisal.
Supervisors include superiors of the employee, other superiors having knowledge
about the work of the employee and department head or manager. General practice is
that immediate superior appraises the performance, which in turn is reviewed by the
departmental head/ managers. This is because superiors are responsible free managing
their subordinates and they have the opportunity to observe, direct and control the
subordinate continuously. Moreover, they are accountable for the successful
performance of their subordinates. Sometimes other supervisors, who have close
contact with employee work also appraise with a view to provide additional
Peer appraisal may be reliable of the workgroup is stable over a reasonably long
period of time and performs tasks that require interaction.
11. In developed countries, the concept of change superiors rated by subordinates in being
used in most organizations. Such a method can be useful provided the relationships
between superiors and subordinates art cordial. Subordinate's ratings in such cases can
be quite useful in identifying competent superiors.
If individuals understand the objectives they are expected to achieve and the standards
by which they are to be evaluated, they are to a great extent in the best position to
appraise their own performance. Also, since employee development means self-
development, employees who appraise their own performance may become highly
Users of Services/Customers
The customers on users of services can, better judge employee performance in service
organizations relating to behaviors, promptness, speed in doing the job and accuracy.
Example, students better judge a teacher’s performance.
Sometimes consultants may be engaged for appraisal when employees or employers
do not trust the supervisory appraisal and management does not trust the self-appraisal
and the appraisal done by subordinates. In such situation, the consultants are trained
and they observe the employee at work for sufficiently long periods for the purpose of
When to appraise?
Informal appraisals are conducted whenever the supervisor or personnel manager feel
it necessary. However, systematic appraisals are conducted on a regular basis; say for
example, every six month or annually.
12. PURPOSES OF PERFORMANCE APPRAISAL
To create and maintain a satisfactory level of performance.
To contribute to the employee growth and development thought training, self and
management development programmes.
To help the superior to have a proper understanding about their subordinates.
To guide the job changes with help to continuous ranking.
To facilitate fair and equitable compensation based on performance.
To provide information for making decision regarding lay off, retrenchment etc.
REQUIREMENTS OF A GOOD APPRAISAL SYSTEM:
It must be easily understandable:
If the system is too much complex or to time consuming, it may be anchored to the
ground by its own dead weight of complicated forms which nobody but the experts
It musty has support of all line people who administer it:
If the line people think that there role is not very important then they will not consider
the system seriously. Similarly, if the people find that the system is too theoretical,
too ambitious, or that has been foisted on them by the ivory-tower staff consultants
who have no comprehension of the demand then they will recent it.
The system should be sufficiently grounded in the requirement of the organization:
It should reflect the value system of the organization. In fact functioning as a
definition of performance, it should tell he employee what set of activities or what
qualities are considered desirable by the organization. As such it should have linkage
with the job description.
The system should be both valid and reliable:
The validity of the ratings is the degree to which they are truly indicative of the
intrinsic merit of the employees. The reliability of the ratings is the consistency with
which the ratings are made, either by different sectors, one by one rater at different
times. Both validity and reliability result from objectivity. The appraisal system of
many organizations lacks this objectivity and bunches all employees into one or two
13. top ranks without taking into account their merits. This raises outstanding
performances but also raises doubts about the validity of the system.
The system should have built-in incentive:
This means that the reward should follow satisfactory performance. Many authors
however, advocate against the direct linkage between the appraisal and rewards. In
their opinion, such a connection throttles downward communication of performance
appraisal because superiors do not like being questioned by disgruntled subordinates.
The system should be open and participative:
It should involve employees in goal-setting process. This helps in planning
The systems should focus more on the development and growth:
Of the employee than on generating data for administrative decision making related to
promotions, increments, etc. the system must help in identifying employee’s strengths
and weaknesses and indicate corrective actions. For example it may reveal that goals
need to be modified on; there is need for classification of duties or for additional
training or job rotation or job enrichment.
1) MEANING/ DEFINITION :
The concept ‘Grievance’ has been defined in several ways by different authorities
some of the definition are follows:
Beach defines a grievance as “any dissatisfaction or feeling of injustice in
connection with one’s employment situation that is brought to the notice of the
management”, where as Flippo indicate the grievance as “a type of discontent which
must always be expressed A grievance is usually more formal in character than a
complaint. It can be valid or ridiculous, and must grow out of something connected
with company operations or policy. It must involve interpretation or application of the
provision of the labour contract.”
Jucius defines a grievance as “any discontent or dissatisfaction, whether exposed
or not, whether valid or not, arising out of anything connected with company which
an employee thinks, believes or even feels to be unfair, unjust or inequitable.”
A grievance is more than likely a violation of an employee's rights on the job, a
right that is usually, but not always defined by the contract. In seeing a grievance in
this way, we can understand better that the best place to look for a way to defend the
member is in the language of the contract. So for all practical purposes, every union
officer must go back to the contract first when a member comes in with a complaint or
a problem. The contract provides us with the strongest ammunition in resolving the
issue for our member. Is the contract the only means to resolve member's grievances?
Of course not. But it is probably the strongest leg you have to stand on. Lastly, there
are many grievances that fall into a large category which we say are discipline-related.
The union can challenge certain rules or their application. We may argue that a
member is being disciplined without "just cause" or he or she is suffering from
disparate treatment. The two expressions are simply an arbitrator's or lawyer's way of
saying the member is being disciplined unfairly.
So the best advice that can be offered in handling a member's problem is to
check the contract first. If there is any reasonable way of dealing with the issue as a
15. contract violation, you ought to use it. You and your local union are only limited by
the contract, the skills of the grievance representatives, and the power of the local
NEED FOR A GRIEVANCE PROCEDURE
Grievance procedure is necessary for any organization due to the following reason:
Most grievances seriously disturb the employees. This may affect their moral,
productivity and their willingness to cooperate with the organization. If an explosive
situation develops, this can be promptly attended to if grievance handling procedure is
already in existence.
It is not possible that all the complaints of the employees would be settled by first-
time supervisors, for these supervisor may not have had a proper training for the
purpose, and they may lack authority. Moreover, there may be personality conflicts
and other cause as well.
It serves as a check on the arbitrary action of the management because supervisors
know that employees are likely to see to it that their protest dose reach the higher
It serves as an outlet for employees gripes, discontent and frustrations. It acts like a
pressure value on a steam boiler. The employees are entitled to legislative, executive
and judicial protection and they get this protection from the grievance redressal
procedure, which also acts as a means of upward communication.
2)CONSIDERS GOOD PRACTICE IN HANDLING DISCIPLINARY AND
GRIEVANCE ISSUES :
endorses the ACAS Code of Practice1 for handling disciplinary and grievance issues
summarizes the statutory procedures which came into force in October 2004
includes the CIPD viewpoint.
16. A summary of issues which can be addressed through the Basic Grievance
Procedure include, but are not limited to, the following: All allegations of
discrimination; allegations of non-compliance with the Personnel Rules; improvement
of systems, practices or procedures; safety; health; working conditions; materials or
equipment; supervisory practices or procedures considered improper or unfair;
disciplinary actions such as suspensions of 40 hours or less, reprimands or memos of
concern; or any other matters subject to the authority of the ADOA Director and for
which no other method of redress is provided or prohibited in the Personnel Rules.
An employee may not submit a grievance challenging the following management
rights, but may submit a grievance concerning the manner of their administration,
insofar as these personally affect the employee: The agency's right to direct its
employees; to hire, promote, transfer, assign, and retain employees; and, to maintain
efficiency of government operations, and to determine the methods, means, and
personnel by which these operations are to be conducted.
An employee may submit a grievance concerning a specific performance factor rating
by utilizing the EPAS Grievance Procedure. An employee may not submit a
grievance concerning the receipt of a performance decrease, the non-receipt of a
performance increase or special performance award, the amount of any increase or
decrease, or the use of any job-related supplemental rating factors to determine the
receipt or amount of an increase, decrease, or special performance award. An
employee may submit a grievance using the Basic Grievance Procedure within 10
days of receipt of a planning EPAS or within 10 days of failing to receive, after
written request, a planning document.
A summary of issues which cannot be addressed through either the Basic or the
EPAS Grievance Procedure, include, but are not limited to, the following: Retirement
issues; life insurance or health insurance issues; suspension for more than 40 working
hours, demotion, or dismissal resulting from disciplinary action; any examination,
certification or appointment; any classification action; and any reduction in force
17. action and matters not subject to the Department of Administration control. Other
avenues exist to seek redress or remedy involving these actions.
Once a grievance is referred to any step beyond the immediate supervisor, it may
not be amended. If additional documentation is submitted by the grievant after the
initiation of the grievance, the reviewing official may remand the grievance to the
appropriate previous level for reconsideration. It is the employee's responsibility to
provide documentation to support the allegations raised in the grievance.
Confidentiality and Use of Official Authority
The preparation, submittal, review and response to a grievance are confidential.
Correspondence regarding a grievance should be handled in a confidential manner,
and envelopes containing grievance material should be clearly labeled "confidential."
No reference to the complaint shall be included in the employee's official personnel
Copies of written responses sent at each step of the procedure are limited to
respondents at the preceding steps, the agency head or the agency head's designee
unless it is necessary to notify additional personnel because the response requires
another individual to take some action.
No person shall directly or indirectly use any official authority or influence in any
manner to discourage the use of this procedure. Any person found guilty may be
subject to penalty under ADOA Personnel Rule R2-5-501.
At any step of the grievance procedure after the mandatory pre-grievance oral
discussion (see below), grievant may select one representative to provide advice
and/or speak for the grievant at any meetings determined necessary by management in
the course of the grievance process. An ADOA employee who serves as a
representative is required to request and obtain prior approval for annual or
compensatory leave for any time devoted as a representative during regular working
18. hours. If a representative is chosen, the representative shall be identified on the
Should a group of employees file a grievance, all employees of the group are
required to sign the grievance and to clearly designate, on the grievance form, one
member who will act as the group's contact person. The contact person will act as a
speaker for the group in any meetings determined necessary by management.
During the entire formal grievance process (after the oral discussion at Step I),
employees are allowed up to four hours with pay to prepare the grievance and/or
confer with their official representative on the grievance. Employees cannot use state
equipment for this process. Employees must request and obtain prior supervisory
approval for time off, which will be subject to the operational needs of the unit. The
time an employee devotes to attending any meetings scheduled by management to
discuss the grievance is considered work time and is not included in the four-hour
limitation specified above.
The ADOA Personnel Rules require that the agency head respond to a grievant not
later than 40 working days after receipt of the grievance at the first step. Within the
40 working days requirement, the time at any step may be extended by the agency
head with concurrence of the grievant. If at any step the response is not made within
the prescribed time and no extension has been agreed upon, the employee may submit
to the next step.
Mandatory Oral Discussion
In accordance with Personnel Rule R2-5-702.A.1, the employee is REQUIRED to
have an oral discussion with the immediate supervisor prior to initiating a formal
19. grievance. The employee must clearly state to the supervisor the employee's
intentions of filing a formal grievance, the issues involved, and the requested
resolution. The purpose of the meeting is for both parties to explore the issues and the
requested resolution. If the employee fails to take this step, the grievance WILL NOT
be accepted through the formal grievance procedure. It is the employee's
responsibility to remember that the Step I grievance must be submitted within 10
working days after the occurrence of the action being grieved, and that these 10 days
are not extended by the date on which the oral discussion takes place.
The employee may select a representative at any step after the oral discussion with the
When an employee wants to submit a basic grievance, the employee must: Use the
appropriate form; state the problem and outline all of the specific facts, circumstances
and issues involved; provide all the appropriate documentation to support the
allegations; state the specific resolution which is sought; of a Personnel Rule violation
is alleged, the specific rule alleged to have been violated must be stated as well as an
explanation of how the rule was violated; and, the employee must sign the grievance
at each step and state why the response at the previous level was not satisfactory.
The employee must also meet the mandatory oral discussion requirement prior to
submitting the complaint and adhere to the required time limitation for submitting a
The Step I responding authority is the employee's immediate supervisor.
The time limit for submitting the grievance is 10 working days from the date of the
action being grieved. If a suspension is being grieved, the date of the action is
considered to be the first day of the suspension. The date the action occurred is not
counted when determining
3)WHY ARE DISCIPLINARY AND GRIEVANCE PROCEDURES
20. Disciplinary and grievance procedures provide a clear and transparent framework
to deal with difficulties which may arise as part of their working relationship from
either the employer's or employee's perspective.
They are necessary to ensure that everybody is treated in the same way in similar
circumstances, to ensure issues are dealt with fairly and reasonably and that they are
compliant with current legislation.
Disciplinary procedures are needed:
So employees know what is expected of them in terms of standards of performance or
conduct (and the likely consequences of continued failure to meet these standards).
To identify obstacles to individuals achieving the required standards (e.g. training
needs, lack of clarity of job requirements, additional support needed) and take
As an opportunity to agree suitable goals and timescales for improvement in an
individual's performance or conduct.
As a point of reference for an employment tribunal should someone make a complaint
about the way they have been dismissed
Grievance procedures are needed:
To provide individuals with a course of action should they have a complaint
(which they are unable to resolve through regular communication with their line
To provide points of contact and timescales to resolve issues of concern.
The legal position
Most of the provisions governing discipline and grievances at work are to be found
in the Employment Act 2002 and the detailed regulations made to implement the
provisions of that Act namely the Employment Act 2002 (Dispute Resolution)
Regulations 2004 (SI2004/752).
Numerous other pieces of legislation cross refer to discipline and grievance issues.
Some important examples include the:
Employment Rights Act 1996 as amended
Employment Rights Dispute Resolution Act 1998
21. Employment Relations Act 1999.
The statutory disciplinary, dismissal and grievance procedures
From 1 October 2004, the Employment Act 2002 made it a legal requirement for all
organizations to follow minimum disciplinary, dismissal and grievance procedures in
certain circumstances. These statutory procedures amount to a minimum standard that
must be followed by all employers and employees.
The Main Features Of The Procedures Are:
Three step statutory disciplinary, dismissal and grievance procedures which must
be followed in most cases
failure to follow the statutory procedures by the employer prior to dismissal will
render that dismissal automatically unfair
employers will pay a potential increase in compensation of between 10-50% if the
procedures are not followed by the employer
an employee may be prevented from presenting some types of claim in the
employment tribunal if they have not followed the grievance procedure first
the procedures are non-contractual until further notification by the Department of
Trade and Industry unless an organization chooses to incorporate the statutory
minimum into their own contractual procedures.
There are two sets of procedures: standard, and modified. It is envisaged that the
standard procedure will be used in all but the most exceptional circumstances. These
procedures apply in a wide range of circumstances which are not limited to issues
relating to the capability or conduct of the employee but, for example, to dismissals
which occur on the expiry of a fixed-term contract and in a smaller scale
There are some exemptions to the statutory procedures, for example if one party
reasonably believes there is a significant threat, harassment or it is not practical to go
through the procedures for reasons beyond their control, or if there are issues of
The ACAS Code of Practice Disciplinary and Grievance Procedures1 provides
detailed guidance for employers. CIPD endorses this Code.
CIPD members can find out more on the legal aspects of this topic from our FAQ on
in the Employment Law at Work area of our website.
22. Top of Form
Grievance policy and practice
It is essential that grievances from employees are treated in the same fair manner.
Failure to address grievances leaves employees with ‘residual anger’ and can lead to
general unrest and disputes in the workplace.
Employees must know to whom they can turn in the event of a grievance and the
support, such as counseling or sources of advice, that is available to them. All line and
senior managers must be familiar with their organization’s grievance procedure.
There are a number of additional factors to bear in mind when dealing with grievances
concerning harassment. For further details see our fact sheet on
Handling grievances informally
Individuals should be encouraged to discuss ordinary, day-to-day issues informally
with their line manager. This helps concerns to be heard and responded to as soon as
Where this has been unsuccessful, or circumstances make this route inappropriate for
the individual, then matters should raised formally through the grievance procedure.
Handling grievances formally
Employees should also be aware of the formal route open to them, including:
the three stages of the statutory procedure and any further elements of the
organization’s additional procedures
with whom to raise the complaint and appropriate sources of support
timescales within which the organization will seek to deal with the complaint
details of the stages of the grievance procedure e.g. how a complaint may be raised
with the next level of management if a satisfactory resolution is not reached.
An employee should be given the right to be accompanied to grievance hearings by a
colleague or trade union representative as explained above.
As in disciplinary matters, record keeping is important
23. 4)GRIEVANCE PROCEDURES: THE STANDARD THREE-STEP
Your employer’s grievance procedure may have more than three steps, but it must
include the following.
1. Written statement
You must set out your grievance in writing (often called a ‘step one letter’). Your
employer’s grievance procedure should say who to send your letter to. If that’s the
person causing the problem, or if they’ve ignored previous complaints, send it to the
HR department or to the person’s boss.
Your grievance should be looked into in a fair and unbiased way. Your employer
should invite you to a meeting (sometimes called a hearing) to discuss the problem,
and you should attend if you can. If there is someone else involved, they might also be
there (but you should tell your employer if you are uncomfortable with this).The
meeting should be at a convenient time for you and anyone else involved. If you think
you’ve not had enough time to prepare, ask for more time. If your employer doesn’t
agree (and they don’t have to), you should go to the hearing, but make sure that your
lack of preparation time is noted. Gather your thoughts before the meeting. Don’t be
afraid to write down what it is you want to say. There is nothing wrong with reading
this out at the meeting. It is up to your employer what format the meeting takes but
they will normally go through the issues that have been raised and give you the
opportunity to comment. The main purpose of the meeting should be to try to
establish the facts and find a way to resolve the problem. The Advisory, Conciliation
and Arbitration Service (Aces) have a code of practice which sets out how your
employer should carry out a grievance procedure. If you ask your employer
beforehand, you have a legal right to take a ‘companion’ (who is a colleague or trade
union representative) to the meeting with you. If no colleague is willing to accompany
you, and you’re not a union member, ask if you can bring a family member or a
Citizen’s Advice Bureau worker (but your employer does not have to agree to this).
The companion can present and/or sum up your case, talk on your behalf and confer
with you during the hearing. They’re protected from unfair dismissal or other
mistreatment for supporting you. The meeting must be at a convenient time for your
companion. You can ask for a postponement of up to five days if necessary to get
24. your chosen companion there. You should be given notes of the meeting, and copies
of any information given by other people. Unless they need to investigate further,
your employer should tell you reasonably quickly what’s been decided, and about
your right to appeal if you’re not satisfied. You might be told of the outcome verbally
at first but it will usually be confirmed in writing.
3. Appeal meeting:
If you’re not satisfied with the decision, or you think the procedure followed was
seriously flawed, you have the right to an appeal. This is usually heard by a higher
level of management. If that isn’t possible, your employer could ask an Aces
mediator or other independent person to hear it. The appeal hearing is similar to the
original meeting, and you have a right to a companion, as before. Your employer
should give you enough time to appeal. If they don’t, make your appeal anyway, and
say that you’ll provide more information later. If you are considering taking your
issue to an Employment Tribunal you may want to appeal even if it seems pointless,
because a tribunal award could be reduced if you don’t. If you can’t sort out the
dispute, you can get help through mediation, conciliation or arbitration, if your
employer agrees to it.
Discipline is required for both the organization and the individual. In the
organization it is needed to regulate the behavior of people, maintain peace and
channel their efforts towards organizational goal. Sad to sate, most people do not
exercise self discipline and this fact makes external control necessary for brining
order within an organization.
25. Discipline is not a glamorous term. It is viewed with fear and suspicion in
organization. The multiple explanation advanced by different expert in the filed have
only added to the prevailing confusion.
Traditionally, discipline is interpreted as a sort of check or restraint on the freedom
of person. Discipline is used to the act of imposing penalties for wrong behavior. If
employees fail to observe rules, they are punished. “Discipline is the force that
prompts an individual or a group to observe the rules, regulations and procedures
which are deemed to be necessary to the attainment of an objective,”
Employees comply with rules not out fear of punishment but out of an inherent
desire to cooperate and achieve goals. Where the organizational climate is market by
two-way communication, clear goals, effective leadership, adequate compensation
employees need not be discipline in the traditional way. Positive discipline, according
to Spriegel enables an employee, “to have a greater freedom in that he enjoys a
greater degree of self-expression in striving to achieve the objective, which he
identifies as his own.”
2)DIFFEREANCE BETWEEN POSITIVE & NEGATIVE DISCIPLINE :
Point Negative Discipline Positive Discipline
Concept It is adherence to established It is the creation of a
norms and regulation, out of conductive climate in an
fear of punishment. organization so that employees
willingly confirm to the
26. Conflict Employees do not perceptive There is no conflict between
the corporate goals as there individual and organizational
Supervision Require intense supervisory Employees exercise self-
control to prevent employees control to meet organizational
from going off the track. object ivies.
3)SELF DISCIPLINE AND CONTROL:
Behavioral scientist view discipline as a self- control to meet organizational
objectives. Megginson clarified the term thus. “By self- discipline he mans the
training that correct, moulds and strengthens. It refers to one’s efforts at self control to
certain needs and demands. This form of discipline is raised on to psychological
principles. First, punishment seldom produce the desired result. Often, it produce
undesirable result. Second, a self- respecting person tends to be a better worker than
one who is not.”
The concept o progressive discipline states that penalties must be appropriate to
the violation. If inappropriate behaviour is minor in nature and has not previously
occurred an oral may be sufficient. If the violation requires a written warning, it must
be done according to a procedure. After written warnings, if the conduct of the
employees is still not along desired lines, serious punitive steps could be initiated. In
case of major violations such has hitting a supervisor may justify the termination of an
employee immdiately. In order to assist a manager to recognize the proper level of
disciplinary action, some firms have formalized the procedure.
5)THE RED HOT STOVE RULE:
27. Without the continual support of the subordinate, no manager can get things done.
But disciplinary action against a delinquent employee is painful and generates
resentment on his part.
According to the Red Hot Stove rule disciplinary action should have following
A} Burns immediately: If disciplinary action is to be taken, it must occur
immediately so the individual will understand the reason for it. With the passage of
time, people have tendency to convince themselves that they are not fault.
B} provides warning: It is very important to provide advance warning that
punishment will follow unacceptable behaviour. As you move closer to hot stove you
are warned by its heat that will be burned.
C} Burns impersonally: Disciplinary action should be impersonal. There are no
favorites when this approach is followed.
6)JUSTICAL APPROCH TO DISCIPLINE:
The Industrial Employment Act was passed in 1946 with a view to improve the
industrial relation climate. The Act requires that all establishment must define the
service rules and prepare standing order. The term Standing order refers to the rules
and regulation which governs the condition of employment of workers. They indicate
duties and responsibility on the part of both the employer and the employees. The
standing order contains rules relating to classification of employees, working hours,
holidays, shift working, attendance, leave, suspension, stoppage of work, redreassal of
these terms and condition may lead to misconduct or indciplpine.
Though there is no rigid and specific procedure for taking disciplinary action, the
disciplinary procedure followed in Indian industries usually consist of the following
a. Issuing the letter of charge: When a employee commits an act of misconduct
that required disciplinary action, the employee concerned should be issue a charge
28. sheet. Charges of misconduct or indiscipline should be clearly and precisely stated
in the charge sheet.
b. Consideration of explanation: On getting the answer for the letter of charge
served, the explanation furnished be consider and if it is a satisfactory, no
disciplinary action need be taken. On the contrary when the management is not
satisfied with the employees explanation there is a need for serving a show-cause
c. Show-cause notice: Show-cause notice is issued by the manager when he believes
that there is a sufficient prima facie evidence of employees misconduct. Enquiry
should also initiated by first serving him a notice of enquiry indicating clearly the
name of enquiring officer, time, date and place of enquiry etc.
d. Holding of a full fledge enquiry : These must be in conformity with the principle
of natural justice, that is the employee concerned must be given an opportunity, of
being heard. When the process of enquiry is over an findings of the same are
record, the enquiry officer should suggest the nature of disciplinary action.
8)DISCIPLINARY POLICY AND PRACTICE:-
Using the disciplinary process
There are two main areas where the disciplinary system is used:
capability/performance and conduct.
It is inevitable that at some stage all employers will encounter difficulties with the
performance of their employees in the workplace (these can stem from difficulties on
the part of the organization such as insufficient training and support, or a lack of
leadership or inappropriate systems of work, as well as the individual who is
struggling to fulfill their responsibilities). It is good practice and also more efficient
29. that such issues are addressed informally, as and when they arise, by managers via
discussions which clarify 'what good performance looks like', goal setting, support
and timely positive feedback where appropriate. Only when these options have been
exhausted and where there is no alternative should managers should enter a more
formal disciplinary procedure.
Situations where an individual is unable to do their job because of ill-health also fall
into this category. In these instances an employee should be dealt with
sympathetically and offered support. However, unacceptable levels of absence could
still result in the employer making use of warnings.
Employee misconduct could range from continued lateness, failure to follow a
reasonable management instruction, abuse of the organization’s computer system or
Internet access, bullying behaviour or creating a hostile work environment, through to
theft, fighting and committing criminal offences. The more grave offences may
constitute gross misconduct. In all cases, even gross misconduct, an employer should
attempt to follow the statutory procedures.
Stages of the process
If disciplinary action is to be taken, it should always have three main stages:
There must always be a full and fair investigation to determine the facts and to decide
if further action is necessary.
All records should be kept meticulously, as this will be vital should a case be
perused at an employment tribunal. Since the burden of proof is on the employer to
show that the dismissal is not unfair or unreasonable, keeping records is vital. Type of
records that should be kept by employers is minutes of meetings, attendance, notes of
telephone calls, copies of correspondence etc.
30. Handing disciplinary interviews
All line managers should be trained and supported so that they are able to carry out
disciplinary meetings with their team. The HR department should be able to assist
them by providing a source of independent advice on preparing for and conducting
the interview, as well as sharing knowledge about similar cases in the organization
and relevant legislation.
The key points to consider are:
Ensure you have investigated all the facts in advance (including consulting the
individual's personal file for relevant information) and plan how you will approach
Make sure the employee knows from the letter inviting them to the meeting why they
have been asked to attend and that they have a right to have a companion present.
Make sure the individual has reasonable notice, ideally more than 48 hours; so that
they have a chance to arrange an appropriate representative if they wish.
Make sure another member of management can be there to take detailed notes and
Conduct the interview.
Never pre-judge the outcome of the interview before hearing the employee's
Start the interview by stating the complaint to the employee and giving appropriate
statements from people involved.
Give the employee ample opportunity to put forward their side of the story and call
any supporting witnesses.
You can also call witnesses, but they can only be in the room for the relevant part of
the interview - not the duration.
Make use of adjournments: always take a break to consider and obtain any extra
information you need before reaching your decision. You can also use if things
become heated or people are upset during the interview.
31. Deliver the decision (and give reasons, taking into account any mitigating
circumstances), confirm review periods and ensure you give details of how to appeal.
Confirm the decision in writing.
It is important that everyone involved in disciplinary action understand the
importance of following the correct procedure, as even if the case against an
employee seems proven, they can still be deemed to have been treated unfairly if the
correct procedures are not followed.
An individual is entitled to be accompanied by a work colleague or trade union
official at formal disciplinary and grievance interviews, and to select a companion of
their choice. It would be good practice for an employer also to offer this at any purely
After the meeting, the employer may decide that no action is necessary. For
example, if an employee was unclear about what was expected from them and they
agree to try to resolve the issue via additional support or counseling.
Alternatively, the employer may decide to give the employee a warning. An
organization’s policy should outline exactly what warnings will be given, but the
following are likely:
Recorded oral warning
First written warning
Final written warning.
Clearly these stages represent an increase in seriousness. With the exception of
extreme examples of misconduct, it would be inappropriate to 'skip stages' in the
process. Ultimately, failure to reach the organization’s standards may result in
Any warning should also specify a review period during which the individual receives
appropriate support and their performance can be monitored.
32. Disciplinary warnings should normally have a specified 'life' after which they are
disregarded when considering any subsequent warnings. Typical timescales for the
types of warning are:
recorded oral warning - 6 months
first written warning - 1 year
final written warning - 2 years.
Where misconduct has been very serious, it may be appropriate for the warning to
continue to be regarded indefinitely.
Recruitment means to estimate the available vacancies and to make suitable
arrangements for their selection and appointment. Recruitment refers to “Discovering
potential applicants for actual or anticipated organizational vacancies. Recruitment is
a process “To discover the source of manpower to meet the requirements of staffing,
to employ effective measures for attracting potential manpower in adequate number”.
Recruitment is the process of identifying the sources for prospective candidates and to
stimulate them to apply for the job. It’s linking activity bringing together those with
jobs and those seeking jobs. It locates the source of manpower to meet the
requirements and job specifications. In recruitment process available vacancies are
given wide publicity and suitable candidates are encouraged to submit application so
as to have a pool of eligible candidates for scientific selection.
33. In recruitment, information is collected from interested candidates. For these different
sources of recruitment such as newspaper advertisement, employment exchange,
internal promotions, etc. are used. In the recruitment, a pool of eligible and interested
candidates is created for the selection of most suitable candidate. Recruitment
represents the first contact that a company makes with potential employees.
Recruitment is a positive function in which publicity is given to the jobs available in
the organization and interested candidates (qualified job applicants) are encouraged to
submit applications for the purpose of selection.
DEFINITION OF RECREUITMENT
According to Edwin Flippo, “Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the organization.
OBJECTIVES OF RECRUITMENT
The objectives of recruitment are as follows:
(i) To attract people with multi-dimensional skills and experiences that suit
the present and future organizational strategies,
(ii) To induct outsider with a new perspective to lead the company,
(iii) To infuse fresh blood at all levels of the organization,
(iv) To develop an organizational culture that attracts competent people to the
(v) To search or head hunt/head pouch people whose skills fit the company’s
(vi) To search for talents globally and not just within the company.
PURPOSE OF RECRUITMENT
Recruitment has three major purposes:
1) to increase the pool of job applicants with minimum cost.
2) To meet the organization’s legal and social obligations regarding the
demographic composition of its workforce.
34. 3) To help increase the success rte of the selection process by reducing the
percentage of applicants who are either poorly qualified or have the wrong
NEED FOR RECRUITMENT
The need for recruitment may be due to the following reasons/situations:
(a) Vacancies due to promotions, transfers, retirement, termination, permanent
disability, death and labour turnover.
(b) Creation of new vacancies due to growth, expansion and diversification of
business activities of an enterprise. In addition, new vacancies are possible due
to job respecification.
SOURCES OF RECRUITMENT
The sources of recruitment may be grouped into:
INTERNAL SOURCES: As the term implies internal source of recruitment is for
those who are currently members or the organization. Whenever any vacancy arises,
somebody from within the organization may be looked into, following are the internal
sources of recruitment.
1) Promotions: - In order to motivate the existing employees, management
follows the policy of internal promotions. Promotion means shifting of an
employee to a higher position carrying higher responsibilities, facilities, status
and salaries. Various positions in the organization are usually filled up by
promotions of existing employees on the basis of merit or seniority or a
combination of both.
2) Transfers: - Transfer refers to a change in job assignment. It may involve a
promotion or demotion, or no change in terms of responsibility or status. A
transfer may be either temporary or permanent, depending the necessity of
filling jobs. E.g. transfer from head office to branch office.
35. 3) Retirements: - At times, management may not find suitable candidate in place
of the one who had retired, after meritorious service. Under this circumstances
management may decide to call retired manager with new extension.
4) Recalls: - When management faces a problem, which can be solved only by a
manager who has proceeded on long leave, it may be decided to recall that
person. After the problem is solved, his leave may be extended.
5) Former employees: - Individuals who left for some other job, might be
willing to come back for higher wages incentives. An advantage with these
sources is that the performance of the person/employee is already known.
As the term implies the external source of recruitment is of potential workers who are
not currently member of the organization. It usually includes new entrants to the
labour force the unemployed and people employed in the other organization seeking
the change. Company managements have to use eternal sources for the recruitment of
supervisory staff and managers as and when necessary. This may be with a view to
introducing the ‘new blood’ in the organization. External recruitment is one way of
bringing into the organization that has new skills or abilities and different way of
approaching job task. Following are the most common external source of managerial
1) Newspaper Advertisement:-Newspaper advertisements are overwhelmingly
popular source of recruitment. A message containing general information
about the job and the organization is placed in various newspapers. Newspaper
advertising typically generates a large applicant flow. Though costly, it
provides wide choice as it attracts a large number of suitable candidates from
all over the country. The best example for newspaper advertisement is the
Times of India’s Asscent supplement which comes on every Wednesday and
contains both domestic as well as international jobs.
2) Campus Recruitment: - College Campuses are another very popular
recruitment source. The growth of Management institutes, IIts and Regional
Engineering Colleges has provided a popular source of recruitment. Private
sector is able to attract many aspirants. It is an excellent source of recruiting
36. management trainees. The promising students get job security immediately
after securing degrees due to such campus interviews/recruitment.
3) Recruitment through internet: - The Internet has quickly become a very
popular source of employment advertising. This source is quickly growing in
popularity. Currently employers can post their openings to any of several
newsgroups for free. Most employment advertisement firms can also post the
jobs on the Internet; however, they charge a fee. A large and fast growing
proportion of employers use the internet as a recruitment tool. More and more
organizations are placing information about open positions on the World Wide
web. There are many web sites through which recruitment takes place. Some
of the examples are www.naukri.com, www.monster.com, etc.
4) Job Fairs: - Job fairs are very effective. A job fair is an event sponsored by a
"job fair" company who charges a fee to participating employers. The "job
fair" company will typically advertise in local media to attract qualified
applicants. Hiring managers can meet multiple candidates and conduct on-the-
spot interviews. Because the applicants may be interviewing with multiple
employers, it is imperative to respond quickly with invitations for in-plant
interviews of qualified candidates. If a job fair results in just one hire it is
usually cost effective.
5) Employment Agencies: - The firm contacts an organization whose main
purpose is locate job seekers. The company provides the agency with
information about the job, which the agency then passes along to its clients.
Clients may be either employed or unemployed. Agencies can either be public
or private. Fees may be charged to either or both the client seeking a job and
the company seeking applicants.
6) Walk-ins, Write-ins and Talk ins:- The most economical approach for
recruitment of candidates is direct applications. The job seekers submit
applications or resumes directly to the employer. The advertisement mentions
date, day and timing during which the applicant can ‘walk in’ for an interview.
Write-ins are those who send written inquiries. These applicants a raked to
complete application forms for further processing. Talk-ins is now becoming
popular and the applicants are required to meet the employer for detailed talks.
The applicant is not required to submit any applications.
37. ADVANTAGES OF INTERNAL RECRUITMENT
1) Internal recruitment is economical.
2) The present employees already know the company well and are likely to
develop a loyalty for the same.
3) It tends to encourage existing employees to put in greater efforts and to
acquire additional qualification. This means there is motivation to employee
to develop and reach to higher positions.
4) It provides security and continuity of employment.
5) Internal recruitment helps to raise the morale of employees and develop
cordial relations at the managerial levels.
6) It reduces labour turnover as capable employees get promotion within the
7) Internal recruitment is a quick and more reliable method.
8) People recruited from within the organization do not need induction or
DISADVANTAGES OF INTERNAL RECURITMENT
1) Internal promotions create a feeling of discontent among those who are not
2) It prevents the entry of young blood in the organization.
3) Promotion to certain key post may not be possible due to non-availability of
4) The organization will not be able to attract capable persons from outside if
internal sources are used extensively.
5) It may encourage favoritism and nepotism.
6) Promotions by seniority may not be always beneficial to the organization.
In brief, internal methods of recruitment should be used to extent possible but too
much dependence on internal methods is undesirable and may prove costly to the
organization in the long run.
ADVANTAGES OF EXTERNAL SOURCE OF RECRUITMENT
38. 1) Entry of young blood in the organization is possible.
2) Wide scope is available for selection. This facilitates selection of people with
rich and varied experience.
3) Selection can be made in an impartial manner as large number of qualified and
interested candidates are available.
4) Scope for heartburn and jealousy can be avoided by recruiting from outside.
5) The management can fulfill reservation requirements in favour of the
disadvantaged section of he society.
DISADVANTAGES OF EXTERNAL SOURCE OF
1) External recruitment leads to labour turnover particularly of skilled,
experienced and ambitious employees.
2) The relations between employer and employee deteriorate leading to
industrial disputes and strikes.
3) The present employees may lose their sense of security. Their loyalty to the
organization may be adversely affected.
4) Employees feel frustrated due to external recruitment and their morale is
MEANING AND DEFINITION OF SELECTION
39. Selection is one of the most important of all functions in the management of
personnel. Selection is more closely related to recruitment because both are
concerned with processing individuals to place them in a job. Selection is next to
recruitment. After identifying the sources of human resources, searching for
prospective employees and stimulating them to apply for jobs in an organization,
the management has to perform the function of selecting the right employees at
the right time. “Right man at the right job” is the basic principle in selection.
Selection is the process of collecting and evaluating information about an
individual in order to extend an offer of employment. It is the process of logically
choosing individuals who posses the necessary skills, abilities and personality to
successfully fill specific jobs in the organization.
Selection means a process by which the qualified personnel can be choosen from
the applicants who have offered their services to the organization for employment.
Thus selection process is negative function because it attempt to eliminate
applicants, leaving the best to be selected. In the words of Dale Yodev, “Selection
is the process in which candidates for employment are divided into two classes –
those who are to be offered employment and those who are not”. In short,
selection is the process of choosing a person suitable for the job out of several
The objective of the selection decision is to chose the individual who can most
successfully perform the job from the pool of qualified candidates. The selection
procedures are the system of functions and devices adopted in a given company to
ascertain whether the candidate’s specification is matched with the job
specification and requirements or not. The selection procedures cannot be
effective until and unless:
1) Requirements of the job to be filled, have been clearly specified (job analysis,
2) Employee specifications (physical, mental, social, and behavioral, etc) have
been clearly specified.
3) Candidates for screening have been attracted.
Thus, the development of job analyses, human resource planning and recruitment
are necessary prerequisites to the selection process. The breakdown in any of
these processes can make even the best selection system ineffective.
40. IMPORTANCE OF SELECTION
The importance of selection may be judged from the following facts:-
1) Procurement of Qualified and Skilled Workers: - Scientific selection
facilitates the procurement of well qualified and skilled workers in the
organization. It is in the interest of the organization in order to maintain the
supremacy over the other competitive firms. Selection of skilled personnel
reduces the labour cost and increases the production. Selection of skilled
personnel also facilitates the expansion in the size of the business.
2) Reduce Cost of Training and Development:- Proper selection of candidates
reduces the cost of training because qualified personnel have better grasping
power. They can understand the technique of work better and in less time.
Further, the organization can develop different training programmes for
different persons on the basis of their individual differences, thus reducing the
time and cost of training considerably.
3) Absence of Personnel Problems: - Proper selection of personnel reduces
personnel problems in the organization. Many problems like labour turnover,
absenteeism and monotony shall not be experienced in their severity in the
organization. Labour relation will be better because workers will be fully
satisfied by the work. Skilled workers help the management to expand the
business and to earn more profits and in turn management compensates, the
workers with high wages, benefits etc.
Selection procedure employs several methods of collecting information about the
candidate’s qualification, experience, physical and mental ability, nature and
behaviour, knowledge, aptitude and the like for judging whether a given applicant is
or is not suitable for the job. Therefore, the selection procedure is not a single act but
41. is essentially a series of methods or stages by which different types of information can
be secured through various selection techniques. At each step, facts may come to light
which are useful for comparison with the job requirement and employee
Selection procedure is lengthy and time consuming particularly in the case of
Following are the steps/ procedures of selection:
1) Job Analysis: - Job analysis is the basis for selecting the right candidate.
Every organization should finalize the job analysis, job description, job
specification and employee specification before proceeding to the next step of
2) Application Form: - Application Form is also known as application blank.
The technique of application blank is traditional and widely accepted for
securing information from the prospective candidates. Where application
forms are use, the data become a part of the employee’s record. The
information is generally required on the following items in the application
forms: Personal background information, Educational information, Work
experiences, salary, personal details, expected salary and allowances etc.
3) Preliminary Interview: - Preliminary or initial interview is often held in case
of “at the gate” candidate. This interview usually of short duration and is
aimed at obtaining certain basic information with a view to identifying the
obvious misfits or unqualified. Thus preliminary interview is useful as a
process of eliminating the undesirable and unsuitable candidate. If the
candidate seems to possess the basic minimum requirements for efficient job
performance, he is given an application form for being filled out by him.
4) Screening Application Form: - Information given in the application form is
used for selection purposes. The applicant who seems to be not fit for the job
on the basis of information given in the application blank is rejected out
rightly at this stage. The applicants who have not furnished the required
information may also be rejected. Applications will not be accepted after the
42. close date. After the close date of the recruitment, the Job Expert for the
hiring department and Human Resources will screen the application forms for
minimum education and qualification requirements. A recruitment date may
be extended if there are no qualified candidates. Recruitments can also be
open until the position is filled; in this situation, applicants are reviewed and
interviewed on a regular basis until an eligible candidate can be selected and
appointed to the available position.
5) Written test:- The organization have to conduct written examination for the
qualified candidates after they are screened on the basis of the application
blanks so as to measure the candidate’s ability in arithmetical calculations, to
know the candidate’s attitude towards job, to measure the candidates aptitude,
reasoning, knowledge in various disciplines, general knowledge and English
language. Intelligence test measures the individuals capacity or reasoning,
verbal comprehension, numbers, vocabulary, word fluency etc. aptitude test
measures individuals capacity or talent ability to learn a job if he is given
6) Final interviewing: - Final interview is usually followed by testing. This is
the most essential step in the process of selection. In this step the interviewer
matches the information obtained about the candidate through various means
to the job requirements and to the information obtained through his own
observation during the interview. The basic objective of the interview is to
measure the applicant against the specific requirements of the job. Interview
must be conducted in a friendly atmosphere and the candidate must be made to
feel at ease. The interviewer should not ask unwarranted questions which
make the candidate nervous. It being the two way communication, the
interviewee should also be given a chance to ask questions if he so likes, about
the job and the organization.
7) Reference Checks: - After completion of the final interview, the personnel
department will engage in checking references. Candidates are required to
give the name of reference in their application forms. These references may be
from the individuals who are familiar with the candidate’s academic
43. achievement or from the applicant’s previous employer, who is well versed
with the applicant’s job performance, and sometime from co-workers. If
reference is checked in the correct manner, a great deal can be learned about a
person that an interview or tests cannot elicit. A good reference check used
sincerely fetches useful and reliable information to the organization.
8) Physical Examination: - The candidates who have crossed the above hurdles
are required to go for the medical examination. This is very important because
of a person of poor health cannot work competently and the investment in him
may go waste. Thus, a thorough medical examination is essential.
9) Selection: - If a candidate successfully overcomes all the obstacles or tests
given he would be declared selected. A appointment letter will be given to him
mentioning the terms of employment, pay scales, post on which selected etc.
45. Placement means offering of the job to the finally selected candidate. One the
employee is selected he should be placed on a suitable job. According to Pigors
and Myres, placement may be defined as “the determination of the job to which an
accepted candidate is to be assigned, and his assignment to that job. It is matching
of what the supervisor has reason to think he can dos with the job demands(job
requirements); it is matching of what he imposes(in strain, working condition) and
what offers is the form of pay roll, companionship with other promotional
possibilities etc.” A proper placement reduced the employee turnover,
absenteeism and accident rate and improves the morale. Placement is not an easy
process. It is very difficult for a new employee who is quite unknown to the job
and environment. For this reason, the employee is generally put on a probation
period ranging from one year to two years. At the end of the probation period, if
the employee show a good performance, he is confirmed as a regular employee of
the organization. Thus, the probation period or trial period is a transition period at
the end of which management has to take decision whether the employee should
be made regular or discharged from the job.
PRINCIPLE OF PLACEMENT
Following principles are followed at the time of placement of an employee:
1) The man should be placed on the job according to requirements of the job. The
job should not be adjusted according to the qualifications or requirements of
the man. “Job first, man next” should be the principle of placement.
2) The job should be offered to the man according to his qualifications. Neither
higher, nor lower job should be offered to the new employee.
3) The employee should be made conversant with the conditions prevailing in the
industry and all things relating to the job. He should also be made aware of the
penalties if he commits a wrong.
4) While introducing the job to the new employee, an effort should be mad to
develop a sense of loyalty and cooperation in him so that he may realize his
responsibilities better towards the job and the organization.
47. CAREER PLANNING AND DEVELOPMENT
The term career planning is frequently used in relation young boys and girls
studying at the college level. College students are expected to consider their qualities
(physical and mental), psychological make-up, likes and dislikes, inclinations, etc.
and decide what they want to be in their life. In other words, they should decide what
they want to achieve in their life and adjust their education and other activities
accordingly. This means they have to plan their career. In such career planning,
parents, family members and college teachers offer helping hand and guide young
boys and girls in selecting the most suitable career. Lot of literature, psychological
tests etc. are also available on career planning. Even lectures, workshops and TV
programmes are arranged for guiding students on career selection (particularly after
the declaration of HSC results). Career planning enables them to use their
abilities/qualities fully and make their life happy, prosperous and rich in quality. At
present, even experts are available to help youth in their career planning. IQ and other
tests are also conducted for this purpose.
The term career planning and development is used extensively in relation to
business organizations. It is argued that if the organizations want to get the best out of
their employees, they must plan the career development programmes in their
organization effectively. Such programmes offer benefits to employees and also to the
organizations. The employees will develop new skills will be available to the
organization. This type of career planning can be described as organizational career
MEANING OF CAREER (WHAT IS CAREER?):-
A career is a sequence of positions/jobs held by a person during the course of his
working life. According to Edwin B. Flippo “a career is a sequence of separate but
related work activities that provide continuity, order and meaning to a person’s life”.
Career of an employee represents various jobs performed by him during the course of
his working life. This is described as career path. In the case of an ordinary worker,
the career path includes the following job positions:
48. Unskilled worker – Semi-skilled worker – Skilled worker – Highly skilled
worker – Assistant foreman – Foreman.
Employees (of all categories) want to grow in their careers as this provides more
salary, higher status and opportunity to use knowledge, education and skills
effectively. An individual with potentials joins a firm not for job but for career
development. An organization has to provide better opportunities to its employees in
their career development and also use their efficient services for the benefit of the
MEANING OF CAREER PLANNING (WHAT IS CAREER
Career planning is one important aspect of human resource planning and
development. Every individual who joins an organization desires to make a good
career for himself within the organization. He joins the organization with a desire to
have a bright career in terms of status, compensation payment and future promotions.
From the point of view of an organization, career planning and development have
become crucial in management process. An organization has to provide
facilities/opportunities for the career development of individual employees.
If the organizations want to get the best out of their employees, they must plan
regularly the career development programmes in their organizations. In brief, career
planning refers to the formal programmes that organizations implement to increase
the effectiveness and efficiency of the human resources available. Career planning
and development is the responsibility of the HR department of the organization. As
already noted, every person joining an organization has a desire to make career as per
his potentiality, ability, skills and so on.
NEED/PURPOSE/OBJECTIVES OF CAREER PLANNING:-
1) To map out careers of employees as per their ability and willingness and to
train and develop them for higher positions.
2) To attract and retain the right type of persons in the organization.
49. 3) To utilize available managerial talent within the organization fully.
4) To achieve higher productivity and organizational development.
5) To provide guidance and assistance to employees to develop their potentials to
the highest level.
6) To improve employee morale and motivation by providing training and
opportunities for promotion.
SCOPE OF ORGANISATIONAL CAREER PLANNING:-
The following activities/areas are covered within the scope of organizational career
a) HUMAN RESOURCE FORECASTING AND PLANNING:-
Here, efforts will be made to identify the number of employees required in
future. In addition, the selection procedure will be adjusted with the overall
strategic goals of the organization.
b) CAREER INFORMATION:-
Here, information relating to career opportunities (promotions, training for self
development, etc) will be supplied to employees. Supplying career
information/opportunities has special significance as this motivates employees
to grow and reach to higher position.
c) CAREER COUNSELLING:-
Such counselling is next to supplying career information. Career counselling is
possible by senior executives through periodic discussions with their
subordinates. Such career guidance encourages subordinate employees to take
interest in certain areas where suitable opportunities of career development are
available. It is a type of internal guidance and motivation of employees for the
selection of possible career paths. Such counselling is needed when employees
have to plan their own careers and develop themselves for career progress.
d) CAREER PATHING:-
Management now plans job sequences for transfers and promotions of their
employees. This makes transfers and promotions systematically with advance
information to employees. Career pathing creates suitable mental make up of
employees for self development.
e) SKILL ASSESSMENT TRAINING:-
50. Training is essential for career planning and also for manpower development.
Along with job analysis, organizational and job manpower requirement
analysis should be undertaken by the management. This prepares proper
background for the introduction of career planning programmes for
ADVANTAGES OF CAREER PLANNING:-
A properly designed system of career planning can provide the following benefits:
i. Career planning helps an employee to know the career opportunities available
in an organization.
ii. Career planning encourages him to avail of the training and development
facilities in the organization so as to improve his ability to handle new and
iii. Career planning involves a survey of employee abilities and attitudes. It
becomes possible, therefore to group together people talking on a similar
wavelength and place them under supervisors who are responsive to that
iv. Career planning anticipates the future vacancies that may arise due to
retirement, resignation, death, etc. at managerial level. Therefore, it provides a
fairly reliable guide for manpower forecasting.
v. Career planning facilitates expansion and growth of the enterprise. The
employees required to fill job vacancies in future can be identified and
developed in time.
DISADVANTAGES/LIMITATIONS OF CAREER PLANNING:-
The main problems in career planning are as follows:
i. Career planning can become a reality when opportunities for vertical ability
are available. Therefore, it is not suitable for a very small organization.
ii. In a developing country like India, environmental factors such as government
policy, public sector development, growth of backward areas, etc. influence
51. business and industry. Therefore, career plans for a period exceeding a decade
may not be effective.
iii. Career planning is not an effective technique for a large number of employees
who work on the shop floor, particularly for illiterate and unskilled workers.
iv. In family business houses in India, members of the family expect to progress
faster in their career than their professional colleagues. This upset the career
v. Systematically career planning becomes difficult due to favouritism and
nepotism in promotions, political intervention in appointments and
reservations of seats for scheduled castes/tribes and backward classes.
HOW TO INTRODUCE CAREER PLANNING PROGRAMME?
(PROCESS OF CAREER PLANNING):-
It is not easy to introduce career development programme at the level of an
organization. Moreover, such career development planning is a continuous activity.
What is happening in most of the organizations is that this concepts is given only lip
service and theoretical importance. If the organization wants to get the best out of
their employees, it must plan the career developments programmes continuously and
effectively in its organization.
DETAILS OF THE STEP IN CAREER PLANNING:-
1) ANALYSIS OF PERSONEL SITUATION:-
This is the first step which needs to be completed before the introduction of
career planning programme. This relates to a time from which career planning
is to be introduced. Here, the base line will be prepared to help the planners to
make projections for the planning period and to help in the evaluation of
plans. In order to analyze the present career situation, the following
information will be required:
i. Total number of employees – their age distribution, qualifications,
positions, specializations, etc.
ii. Structure – broad as well as detailed and the qualifications required for
iii. Personnel need of the organization. (Category wise)
iv. Span of control available within the organization.
52. v. Field staff at head office with necessary details, and
vi. Facilitates available for training and development within and outside
The information collected on these aspects serves as the base for the preparation of
career development plan for the future period.
1. ANALYSIS OF PESONNEL SITUATION
2. PROJECTION OF PERSONNEL SITUATION
3. IDENTIFYING CAREER NEEDS
4. SELECTION OF PRIORITIES
5. DEVELOPMENT OF CAREER PLANS
6. WRITE UP OF FORMULATED CAREER PLANS
7. MANAGERIAL PLANNING
9. REVIEW AND EVALUATION
10. FUTURE NEEDS
2) PROJECTION OF PERSONNEL SITUATION:-
In this second step, an attempt is being made to find out the situation likely to
develop after the completion of career development plan. This can be done on
the basis of assumption which can predict what is likely to happen at the close
of the career development plan.
3) IDENTIFYING OF CAREER NEEDS:-
In this third step of career development plan, efforts are made to find out
precisely the career development needs of the future period. It is possible to
53. identify the scope and limitations of career development needs on the basis of
the data collected (through personnel inventory of the organization, employee
potentials, and appraisal of employees).
4) SELECTION OF PRIORITIES:-
It is rather difficult to meet all the needs of the employees and the organization
for career development immediately i.e. through one career development plan.
Naturally, there is a need to select the pressing and urgent problems of
employees and organization. In addition, other factors such as technical,
financial and administrative must be taken into consideration while finalizing
5) DEVELOPMENT OF CAREER PLAN:-
This is the most important step in the whole process of career developing plan.
Such plan must describe the following in concrete form/forms:
a. What is to be attained/achieved?
b. The extent to which it is to be attained,
c. The employees involved,
d. The department in which the proposed plan will operate;
e. The length of time required the achieving the goals.
In order to execute the career development plan, the organization should:
a) Introduce systematic policies and programmes of staff training and
career development for all categories of employees so as to enable
I. Improve their level of skill and knowledge;
II. Gain wider experiences; and
III. Assume higher responsibilities.
b) Establish and effectively implement a system of study leave;
c) Develop the experience of the employees by encouraging their rotation
from one region to another;
d) Take positive steps to encourage career development, such as:
I. Providing within the organization;
II. Giving priorities in the filling of vacancies in the following order for:
1. promotion within the organization;
2. Transfer within the organization;
3. Outside recruitment.
54. III. Removing artificial barriers to promotion;
IV. Establishing a register of employees for promotion on merit-cum-
6) WRITE-UP OF FORMULATED PLAN:-
After deciding the priorities of career development plan, the next major step is
to prepare a write up (brief report) of the career plan. This writ-up should
contain all necessary details such as schedule (time sequence of plan),
procedures and other details so that the evaluation of the plan will be easy and
7) MONITORING PLANNING i.e. MONITORING OF CAREER
Monitoring of the plan is essential for its effective execution. Expected
results/benefits will be available only when the plan is implemented properly.
Planned (expected) targets and targets actually achieved can be compared
through suitable monitoring of the plan. The gap between the two (i.e. short
falls) can be located quickly. In addition, suitable remedial measures can be
taken to rectify the shortfalls.
8) IMPLEMENTATION (OF CAREER DEVELOPMENT PLAN):-
Implementation/execution of the plan is an integral aspect of planning process
itself. For effective implementation, co-operation and co-ordination at all
levels is necessary. The implementation needs proper monitoring so as to
avoid possible shortfalls.
9) REVIEW AND EVALUATION OF CAREER PLANS:-
A plan needs periodical review. Such evaluation avoids mistakes, deficiencies,
etc during the implementation stage. It is built-in device to measure the
effectiveness of the plan. Actual benefits available will be known only through
such review and evaluation. Such evaluation should be done by experts. It
should be conducted systematically and also impartially.
This is the last step/stage of the current career development plan and the first
step/stage of the next plan. Here, on the basis of the achievements of the
current plan, the career needs of the future period (of employees and also of
the organization) are estimated. The new priorities are decided and the details
of the new career development plan are prepared. Planning is a continuous
55. process/activity. This rule is applicable to career development plans of an
Education is thought of in terms of employment. People go for school and college
education and prepare for their occupation. Very few people stick to the same job
throughout their life. Most of them switch job either within the organization or in
some other organization. Chances are they change jobs, depending on available
opportunity, several times before retirement. Where opportunity is restricted they
continue with the same job. They go through the following stages:
Almost all candidates who start working after college education start around
mid-twenties. Many a time they are not sure about future prospects but take up
a job in anticipation of rising higher up in the career graph later. From the
point of view of organization, this stage is of no relevance because it happens
prior to the employment. Some candidates who come from better economic
background can wait and select a career of their choice under expert guidance
from parents and well-wishers.
This career stage begins with the candidate getting the first job getting hold of
the right job is not an easy task. Candidates are likely to commit mistakes and
learn from their mistakes. Slowly and gradually they become responsible
towards the job. Ambitious candidates will keep looking for more lucrative
and challenging jobs elsewhere. This may either result in migration to another
job or he will remain with the Same job because of lack of opportunity.
3) MID-CAREER STAGE:-
This career stage represents fastest and gainful leap for competent employees
who are commonly called “climbers”. There is continuous improvement in
performance. On the other hand, employees who are unhappy and frustrated
with the job, there is marked deterioration in their performance. In other to
show their utility to the organization, employees must remain productive at
this stage. “climbers” must go on improving their own performance.
Authority, responsibility, rewards and incentives are highest at this stage.
56. Employees tend to settle down inn their jobs and “job hopping” is not
4) LATE CAREER:-
This career stage is pleasant for the senior employees who like to survive on
the past glory. There is no desire to improve performance and improve past
records. Such employees enjoy playing the role of elder statesperson. They are
expected to train younger employees and earn respect from them.
5) DECLINE STAGE:-
This career stage represents the completion of one’s career usually
culminating into retirement. After decades of hard work, such employees have
to retire. Employees who were climbers and achievers will find it hard to
compromise with the reality. Others may think of “life after retirement”.
HIGH EXPLORATION ESTABLISHMENT MID-CAREER LATE CAREER DECLINE
LOW 25 35 45 55 60
STAGES IN CAREER DEVELOPMENT
CONCEPT/INTRODUCTION TO CAREER DEVELOPMENT:-