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HUMAN RESOURCE MANAGEMENT S. vivekanantha, Faculty Member, Department of Management Studies Kodaikanal Christian College, Kodaikanal Personnel, Manpower, Human Resources and human resource Development

The big difference between these terms

Why Human Factor is More Important? Human resources are unique in character • HR alone can produce an output greater than its input • HR is the only resource which are animate • HR is most complex and unpredictable in its behavior • 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 wellbeing of the individual, enables all those engaged in the undertaking to make their maximum personal contribution in the effective working of the undertaking.” 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 organization’s 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 structure • To secure integration to the individuals and organization by reconciling individual group goals • To generates maximum development of individuals groups • To recognize and satisfy individual needs and group goals • To maintain high morale and better human relations • To develop and maintain a quality of work life • To establish and maintain productive selfrespecting 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 shareholders • Vision • Contains at least two components—a mission that describes the firm’s DNA and the “picture” of the firm as it hopes to exist in a future time period.

Parts of Strategic Management •Strategy •An action plan designed to move an organization toward achievement of its vision

•Mission •Defines the firm’s 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 strategies

•External Environment •A set of conditions outside the firm that affect the firm’s 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 stakeholders

The Three Parts of the Strategic Management Process • Strategic leaders form a firm’s vision and mission. • 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 implementation— the set of actions firms take to use a strategy after it has been selected.

Vision and Mission Statements • Vision Statements • McDonald’s To give each customer, every time, an experience that sets new standards in value, service, friendliness, and quality. • NASDAQ To build the world’s 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. • Petsmart To be the premier organization in nurturing and enriching the bond between people and animals. • Wachovia Wachovia’s vision is to be the best, most

trusted and admired financial services company.

Mission statements contd… • Mission Statements • Bristol-Myers Squibb Our mission is to extend and enhance human life by providing the highest-quality pharmaceuticals and health care products. • GlaxoSmithKline GSK’s mission is to improve the quality of human life by enabling people to do more, feel better and live longer. • Merck The mission of Merck is to provide society with superior products and services by

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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. Wipro The mission is to be a fullservice, global outsourcing company.

HUMAN RESOURCE PLANNING •

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 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 •

•To estimate cost of Hr and Housing needs of Employees

•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 Need and Importance of HRP •

• To carry on its work and to achieve its objectives • HRP identifies gaps • There is need to replace employees • HRP facilitates expansion and growth

• HRP helpful in effective utilization of HR and Technology • 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

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 Assignments 1.What are the challenges of HR Executives in the present day business scenario? •2. State essential qualities of Successful HR Manager? •

•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. •

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Personnel Management & Industrial Relations – P.C. Tripathi Himalaya Pub. HUMAN RESOURCE MANAGEMENT S. vivekanantha, Faculty Member, Department of Management Studies Kodaikanal Christian College, Kodaikanal

Job Analysis •Job analysis is a formal and detailed study of jobs 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 •

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•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 Specification • 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 •

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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 structure” •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 categories •1. Non-quantitative methods: •a. Ranking or Job Comparison •b. Grading or Job Classification

•2. Quantitative methods: •a. Point Rating •B. Factor Comparison Recruitment •What is Recruitment? •What is Procurement? The Difference Between Recruitment and Selection and Placement. •Why Recruitment is more important for an organization? •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 department • 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 process.

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 requirements. • It is the process of weeding out unsuitable candidates and finally identify the most suitable candidate. • 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 pool.

Methods of Selection • (a) Tests: • 1. Aptitude Tests: • Mental or Intelligence test • Mechanical test • Psycho-motor test

• 2. Achievement Tests: - Job Knowledge test - Work sample test

•3. Personality Tests: •Objective test •Projective test •Situation test •4. Interest Tests: • Continued…

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 Induction/Orientation 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 programme. •

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Advantages and Objectives of an Orientation programme • Objectives: • 1. To help the new come to overcome his shyness • To build new employee’s 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 employees • 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 company’s 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 company’s culture •To increase the employee’s 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 jobs •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 Assignments 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. •

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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 •

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3.Personnel Management & Industrial Relations – P.C. Tripathi Himalaya Pub 4. Personnel Management – C.B Mamoria Vikas Pub. HUMAN RESOURCE MANAGEMENT S. vivekanantha, Faculty Member, Department of Management Studies Kodaikanal Christian College, Kodaikanal

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PROMOTION 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 standards.

Transfer 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 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. Seperations 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 separations. •

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Resignation Retirement Layoff Retrenchment Di smissal 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. Employee’s 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.Industry’s role in the economy • 8.Potentials of an employee

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

Assignments 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? •

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Further Readings 1. Human Resource Management – Saiyadin TMH Pub. 2. Human Resource Management – Dr. C.B. Gupta Sultan Chand and sons Pub. Personnel Management & Industrial Relations – P.C. Tripathi Himalaya Pub. HUMAN RESOURCE MANAGEMENT

• Unit – IV • Bachelor of Business Administration • V Semester

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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

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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 turnover • 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 Relations • Economic Causes • Organizational Causes • Psychological Causes • Social Causes • Political Causes

•Multiplier Effects •Fall in normal Tempo •Resistance to Change •Frustration and Social cost 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 company’s integrity and his own sincerity and Honesty. • Management should encourage right kind of Union Leadership • After the settlement is reached should be properly administered. •

Meaning and Definition of Grievances •Broadly speaking Grievance means any real or imaginary feeling of dissatisfaction and

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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 Maladjustment 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

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Standard Grievance Procedure (ILC) Follow only standard procedure ( a voluntary Grievance procedure) in pursuance to the Code of th Discipline adopted in the 16

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

•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 •

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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. HUMAN RESOURCE MANAGEMENT •

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• Unit – V • 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

Meaning and Definition of Performance Appraisal • 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 employee’s excellence in matters pertaining to his present job and his potential for a better job” • Difference between Merit-rating and Performance Appraisal • Present appraisal systems in practice- 360 degree…

The process of Performance Appraisal

•1. Establishing Performance Standards •2. Communicating the Standards •3. Measuring Performance •4. Comparing the actual standards with the Standards •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 action”

Objectives of Workers participation in management 1. Economic objective 2. Social Objective 3. Psychological Objective •1. Democratic right to influence the managerial decisions •2. Raise worker’ level of motivation and commitment •3.Cross-fertilisation and speedy communication of ideas

Foster better co-operation between labour and management. 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 Assignments 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

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1. Human Resource Management – Saiyadin TMH Pub. 2. Human Resource Management – Dr. C.B. Gupta Sultan Chand and sons Pub. Personnel Management & Industrial Relations – P.C. Tripathi Himalaya Pub.