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

The big difference between these terms

Personnel, Manpower, Human Resources and human
resource Development
Why Human Factor is More Important?
  • Human resources are unique in character
  • HR alone can produce an output greater than its
  • HR is the only resource which are animate
  • HR is most complex and unpredictable in its
  • This is the only resource which appreciates in
    its value with the passage of time.

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

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

Difference between Personnel Management and Human
Resource Management
  • Take Home Compulsory Assignment.

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

Features of HRM
  • Comprehensive Function
  • People-Oriented
  • Action Oriented
  • Individual Oriented
  • Development Oriented
  • Pervasive Function
  • Continuous Function
  • Interdisciplinary
  • Nervous system.
  • Young discipline
  • Future-oriented
  • Challenging Function
  • Science as well an Art
  • Staff function

Functions of HRM
  • I. Managerial Functions
  • a. Planning
  • b. Organizing
  • C. Directing
  • d. Controlling.
  • II. Operative Functions
  • a. Procurement
  • b. Development
  • c. Compensation
  • d. Integration
  • e. Maintenance

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

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

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

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

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

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

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

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

Objectives of HRP
  • To estimate cost of Hr and Housing needs of
  • To provide a basis for MDP
  • To facilitate productivity Bargaining
  • To meet the needs of Expansion and
    Diversification programmes
  • To assess shortage and surplus of Hr
  • To ensure optimum use of existing HR
  • To forecast future requirements for HR
  • To provide control measures
  • To link HRP with Organisational Planning
  • To determine levels of Recruitment and Training

Need and Importance of HRP
  • HRP is useful in anticipating Cost of HR which
    facilitates budgeting easier
  • HRP facilitates Career and succession planning
  • HRP helps in planning for physical facilities
    like canteen staff quarters etc
  • To carry on its work and to achieve its
  • HRP identifies gaps
  • There is need to replace employees
  • HRP facilitates expansion and growth
  • HRP helpful in effective utilization of
  • HR and Technology

Why HRP gained so much focus in recent times
  • Employment situation
  • Technological Changes
  • Organizational Changes
  • Demographic Changes
  • Lead time
  • Hiring costs
  • Increased Mobility
  • Shortage of Skills
  • Legislative Controls
  • Pressure Groups
  • Systems Concepts

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

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

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

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

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

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

Benefits of Job Analysis
  • 1. Organizational Design
  • 2. Human Resource Planning
  • 3. Recruitment and Selection
  • 4. Placement and Orientation
  • 5. Training and Development
  • 6. Performance Appraisal
  • 7. Career Path planning
  • 8. Job Design
  • 9. Job Evaluation
  • 10 Labour Relation
  • 11. Employee Counselling
  • 12. Health and Safety

The process of Job Analysis
  • 1. Organisational Analysis
  • 2. Organising Job Analysis Programme
  • 3. Deciding the uses of Job Analysis Information
  • 4. Selecting Representative Jobs for analysis
  • 5. Understand Job Design
  • 6. Collection of Data
  • 7. Developing a Job Description
  • 8. Preparing a Job Specification

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

Differentiate between Job Description and Job
  • Job Description is a functional description of
    what the job entails. And define the purpose and
    scope of a job. It is a written record it
    contains title, location, duties,
    responsibilities, working conditions, hazards and
    relationship with other jobs.
  • Job specification is a statement of the minimum
    acceptable human qualities required for the
    proper performance of a job.
  • It includes physical, mental, social,
    psychological and behavioral characteristics of
    a person

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

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

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

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

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

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

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

Methods of Selection
  • 3. Personality Tests
  • Objective test
  • Projective test
  • Situation test
  • 4. Interest Tests
  • Continued
  • (a) Tests
  • 1. Aptitude Tests
  • Mental or Intelligence test
  • Mechanical test
  • Psycho-motor test
  • 2. Achievement Tests
  • - Job Knowledge test
  • - Work sample test

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

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

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

Advantages and Objectives of an Orientation
  • Objectives
  • 1. To help the new come to overcome his shyness
  • To build new employees confidence
  • To develop the new entrants a sense of belonging
    and loyalty
  • To foster a close and cordial relationship
  • To prevent false impression and negative attitude
    of the new employees
  • To give the new comers necessary information like
    canteen, locker room. Rest periods and leave
    rules etc
  • Advantages
  • It helps to build two way communication
  • It facilitates informal relations and team work
  • Induction is helpful in supplying information
    about the organisation, job, and welfare of
  • Proper Induction will reduce employees
    grievances, absenteeism and labour turnover
  • Induction helps to develop good public relations
    and improve the overall morale of employees
  • An Induction programme proves that the company is
    taking a sincere interest in getting him off to a
    good start

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

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

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

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

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

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

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

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

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

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

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

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

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

Need for Demotion Why and When
  • 1. Adverse Business Conditions
  • 2. Incompetence
  • 3. Technological Change
  • 4. Disciplinary Measure.

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

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

Essentials of sound wage and Salary structure
  • 1. Internal Equity
  • 2.External Competitiveness
  • 3. Built in incentive
  • 4. Link with productivity
  • 5. Maintain Real Wages
  • 6. Increments

General and Individual Factors affecting Wages
  • General Factors
  • 1. Demand for and Supply of labour
  • 2. Ability to pay of the Organization
  • 3. Labour Unions
  • 4. Cost of Living
  • 5. Prevailing wage rates
  • 6. Job Requirements
  • 7. Productivity
  • 8. State Regulation
  • Individual Factors
  • 1. Employees Age and work Experience
  • 2. Educational Qualification
  • 3. Promotion possibilities
  • 4.Hazards involved in the job
  • 5. Stability of Employment
  • 6.Demand for the product
  • 7.Industrys role in the economy
  • 8.Potentials of an employee

Methods of Wage Payment
  • 1. Time Wage system
  • 2. Piece Wage system

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

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

  • Unit IV
  • Bachelor of Business Administration
  • V Semester
  • Non CBCS Syllabus of Madurai Kamaraj University
  • S. Vivekanantha,
  • Faculty Member, School of Business Studies and
    Application, Kodaikanal Christian College,
  • Kodaikanal

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

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

Causes and Effects of poor Industrial
  • Multiplier Effects
  • Fall in normal Tempo
  • Resistance to Change
  • Frustration and Social cost
  • Economic Causes
  • Organizational Causes
  • Psychological Causes
  • Social Causes
  • Political Causes

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

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

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

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

Understanding Employee Grievances
  • 1. Exit Interview
  • 2. Opinion Surveys
  • 3. Gripe Boxes
  • 4. Open Door Policy
  • Effects of Grievances
  • 1. Indiscipline
  • Low morale and decreased productivity
  • High Absenteeism and turnover
  • Loss of faith in management
  • Increase in accidents
  • Formation of cliques
  • Lowering of public image of the organization

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

Essentials of Sound Grievance Procedure
  • 1. Legal Sanctity
  • 2. Acceptability
  • 3. Promptness
  • 4. Simplicity
  • 5. Training
  • 6.Follow-up

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

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

  • Unit V
  • Bachelor of Business Administration
  • V Semester
  • Non CBCS Syllabus of Madurai Kamaraj University
  • S. Vivekanantha,
  • Faculty Member, School of Business Studies and
  • Kodaikanal Christian College,
  • Kodaikanal

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

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

Methods of Performance Appraisal
  • Traditional Methods
  • 1. Confidential Report
  • 2. Free Form or Essay
  • 3. Straight Ranking
  • 4. Paired Comparisons
  • 5. Forced Distribution
  • 6. Graphic Rating Scales
  • 7. Checklist Method
  • 8. Critical Incidents
  • 9. Group Appraisal
  • 10. Field Review
  • Modern Methods
  • 1. Assessment Centre
  • 2. Human Resource Accounting
  • 3. Behaviorally Anchored Rating Scales
  • 4. Appraisal through MBO.

Essentials of an Effective Appraisal System
  • 1. Mutual Trust
  • 2.Clear Objectives
  • 3.Standardisation
  • 4.Training
  • 5.Job Relatedness
  • 6.Documentation
  • 7. Feedback and Participation
  • 8. Individual differences
  • 9. Post appraisal Interview
  • 10. Review and Appeal

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

In the words of Mehtras, the concept of
participation as a principle of democratic
administration in an industry implies a share by
rank and file in the decision-making process of
an industrial organization through their
representatives at all the appropriate levels of
management in the entire range of managerial
Objectives of Workers participation in management
  • 1. Democratic right to influence the managerial
  • 2. Raise worker level of motivation and
  • 3.Cross-fertilisation and speedy communication of
  • Foster better co-operation between labour and
  • 1. Economic objective
  • 2. Social Objective
  • 3. Psychological Objective

Importance of Workers Participation in Management
  • Mutual Understanding
  • Higher Productivity
  • Industrial Harmony
  • Industrial Democracy
  • Less Resistance to change
  • Creativity and Innovation

Levels/Degrees of Participation
  • Communication
  • Consultation
  • Codetermination
  • Self-Management

Forms of Workers Participation in Management
  • Suggestion Scheme
  • Works committees
  • Joint Management Councils
  • Worker Directors
  • Co-Partnership

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

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