HR Dossier

HRuday Summer Internship 2017-2019 Page |1
GUIDELINES
Students are advised to go through the entire dossier and be aware of

the concepts and other information provided here before the process
of summer internship begins.
The dossier has 4 main parts.
1. Organisational Behaviour
2. Human Resource Management
3. Labour Laws
4. Miscellaneous information

INDEX
1. Organisational Behaviour 4
Leadership
Motivation
Personality
2. Human Resource Management 16

Recruitment
Training and Development
Compensation and Benefits
Performance Management
3. Labour Laws 33
4. Miscellaneous 55
HR Analytics
HR Roles
Hot Topics
Famous HR Professionals
Buzzwords
Know Your Payslip

ORGANIZATIONAL
BEHAVIOUR
Individual Dynamics and Groups and Organisational
Leadership Dynamics
Leadership Motivation Personality Perception
Early Trait Maslow’s Big 5

Theories Theory
Behaviour ERG Theory MBTI

Theory
Contingency Herzberg’s Adams

Theories Two Factor Equity
McClelland’
s Theory
Goal Path
Theory

LEADERSHIP
Leadership is the process of guiding and directing the behaviour of people in the work
environment.
Early Trait Theories
 Identified leadership quality based on physical attributes (height, appearance, weight,

etc.,), personality characteristics, and abilities.
 There was no significant evidence to conclude that leaders can be distinguished from
the followers on these bases. These were neither strong nor uniform basis.
Behavioural Theories
 Theories proposing that specific behaviours differentiate leaders from non leaders.
 It states that leadership is a skill set and can be taught to anyone, so we must identify the
proper behaviours to teach potential leaders.
Contingency Theory
 While trait and behaviour theories do help us understand leadership, an important

component is missing: the environment in which the leader exists
 Contingency Theory adds this additional aspect to our understanding leadership
effectiveness studies.
 Three key contingency models for leadership: 1. Fiedler’ Model 2. Hersey and
Blanchard’s Situational Leadership Theory, and Path-Goal Theory. Let us study about
these three theories in detail
Fiedler’s Model
 Effective group performance depends on the proper match between leadership style
and the degree to which the situation gives the leader control.
 It assumes three Situational Factors-
o Leader-member relations: degree of confidence and trust in the leader
o Task structure: degree of structure in the jobs
o Position power: leader’s ability to hire, fire, and rewards
 It states that for effective leadership one must change to a leader who fits the
situation or change the situational variables to fit the current leader.
APPLICATION
Fiedler’s Model has many applications in the organizational world:

1. Can be used to assess the effectiveness of an individual in a particular role and look at the
reasons for one’s effectiveness or ineffectiveness.
2. Can be used to predict whether a person who has worked well in one position in an
organization will be equally effective in another position having different situational variables
when compared to the existing position based on the contingencies that make one’s style
effective.
3. Can help in implementing changes in the roles and responsibilities that management might
need to make to bring effectiveness to the role of the person leading the same.
Hersey and Blanchard’s Situational Leadership Theory
 A model that focuses on follower “readiness”

o Followers can accept or reject the leader
o Effectiveness depends on the followers’ response to the leader’s actions
o “Readiness” is the extent to which people have the ability and willingness to
accomplish a specific task
APPLICATION- The manager will not have only one style of leadership technique for every
individual. It will vary from person to person depending on his or her ability to follow orders
and the willingness to follow them. If a person does not have the ability to follow orders
neither willing to follow, it means that the person not only lacks the skill to do the task but
has attitude problem. Thus, the leader might give very specific instructions of how it is to be
done and by when. The leader might have to micro manage the person. But if the person is
unable to follow the task but has the willingness to do it, means that there is no attitude
problem in the person. The leader should display high task orientation because in that case
the person will learn how to do the job in a structured manner.
On the other hand, if the person is able to do the job but is not willing to, it is very important
for the leader to understand why he is not willing to do it. He or she might get very supportive
and understand the problems and try solving them. But if the person is both able to follow

and willing to follow, then he or she will anyway do the task and thus no much leadership
behaviour is needed.
Path-Goal Theory
 The theory states that:
 Leaders provide followers with information, support, and resources to help them
achieve their goals
 Leaders help clarify the “path” to the worker’s goals
 Leaders can display multiple leadership types
 Four types of leaders:

 Directive: focuses on the work to be done
 Supportive: focuses on the well-being of the worker
 Participative: consults with employees in decision making
 Achievement-Oriented: sets challenging goals
APPLICATION
This theory was developed from expectancy theory to describe the way that leaders
encourage and support their followers in achieving the organizational goals that have been
set for them by making the path clear and easy. This theory emphasizes the relationship
between leader’s style and subordinate characteristics and the work-place setting.
Subordinates get motivated when they think that they are capable of performing their work
and believe that their efforts will result in a certain outcome and the payoffs for doing their
work are worthwhile. In particular, leaders should be doing the following three tasks:
1. Clarify the path so that the subordinates know which way to go. This motivates the
members of the group by clarifying the path to personal rewards that result from attaining
work goals. You have thus `fixed' him on the job and made him see that his performance can
lead to positive or negative rewards. An ambiguous work environment increases stress, thus
decreasing satisfaction and productivity.
2. Once you have made the path-goal clear to the members and also told them about what
the job requires, the next step is to remove roadblocks that are stopping them from reaching
there. Leaders provide followers with the elements they think subordinates need to reach
their goals. They also help the followers through coaching and direction, removing obstacles
and roadblocks to attaining the goal, and making the work itself more personally satisfying
3. The third step is increasing the rewards along the route. Leader must offer the reward to
the member of the group who actually accomplishes the task. Your reward may as simple as
praise or can also lead to increase in the pay or promotion of the member to a higher position.
Your judgment about the desirability of the member to a higher position is crucial. Your
judgment about the desirability of the member's effort and the goal helps you to decide
whether and what reward can be given.

Other Important Leadership Theories-
Vroom and Yetton’s Leader-Participation Model

 How a leader makes decisions is as important as what is decided
 Premise: Situational variables interact with leadership attributes to impact the
behavior of the leader.
o Leader behaviour must adjust to the way tasks are structured in the
organization
o This is a normative model that tells leaders how participative to be in their
decision making of a decision tree.
Leader-Member Exchange (LMX) Theory

 In-Group
o Members are similar to leader
o In the leader’s inner circle of communication
o Receives more time and attention from leader
o Gives greater responsibility and rewards
 Out-Group
o Managed by formal rules and policies
o Receive less of the leader’s attention / fewer exchanges
o More likely to retaliate against the organization
APPLICATION
The In-group members are more likely to engage in organizational citizenship behaviour,
while out-group members are more likely to retaliate against the organization. Thus, a good
manager will always try to “include” everyone in his team and give equal attention to all them.
It is often seen in companies that a manager forms a set of favourites ends up giving special
treatment to them and thus the other employees might feel demotivated and this might lead
to a dip in their performances.

MOTIVATION
Motivation is the process of arousing and sustaining goal directed behaviour. The following
are the important Motivation Theories
Maslow’s Hierarchy of Needs
 Maslow stated that people are motivated to achieve certain needs and that some
needs take precedence over others.
 Our most basic need is for physical survival, and this will be the first thing that
motivates our behaviour. Once that level is fulfilled the next level up is what
motivates us, and so on.
APPLICATION
Generally, a person at the beginning of their career will be very concerned with physiological
needs such as adequate wages and stable income and security needs such as benefits and a
safe work environment. Employees whose lowest level needs have not been met will make
job decisions based on compensation, safety, or stability concerns.
Once these basic needs are met, the employee will want his “belongingness” (or social) needs
met. This means effective interpersonal relations are necessary. Managers can create an
environment where staff cooperation is rewarded. With these needs satisfied, an employee
will want his higher-level needs of esteem and self-actualization met. Esteem needs are tied
to an employee’s image of himself and his desire for the respect and recognition of others.
Cross-training, job enrichment, and special assignments are popular methods for making
work more rewarding. With self-actualization, the employee will be interested in growth and
individual development. At this highest level, managers focus on promoting an environment
where an employee can meet his own self-actualization needs.

Thus, as an HR Manager, one should ensure that each and every needs are catered to. An
employee will only stick to a company if all his needs get fulfilled. Or else he only will be
motivated to work in the organization till he feels saturated at his current workplace. But if
the next level of needs is not fulfilled, the employee may start looking for opportunities
elsewhere.
ERG THEORY
Clayton Alderfer recategorized Maslow’s hierarchy of needs into three simpler and broader
classes of needs:
 Existence needs- These include need for basic material necessities. In short, it
includes an individual’s physiological and physical safety needs.
 Relatedness needs- These include the aspiration individuals have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
public fame and recognition. Maslow’s social needs and external component of
esteem needs fall under this class of need.
 Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem
needs fall under this category of need.
THEORY X and THEORY Y
 Theory X- A set of assumptions of how to manage individuals who are motivated by

lower order needs.
 The assumptions about theory X is that people work as little as possible. They lack
ambition, dislike responsibility, and prefer to be led. These people are resistant to
change and are often gullible and not very bright.
 Theory Y- A set of assumptions of how to manage individuals who are motivated by
higher order needs.
 The set of assumptions of theory Y is that people are not by nature passive or resistant
to change. They are self-directed to meet their objectives and will be committed to
their objectives.
APPLICATION
McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing
people, which under the pressure of day-to-day business are all too easily forgotten.
McGregor's ideas suggest that there are two fundamental approaches to managing people.
Many managers tend towards theory x, and generally get poor results. Enlightened managers
use theory y, which produces better performance and results, and allows people to grow and
develop.
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HERZBERG’S TWO FACTOR THEORY
The Two-factor theory states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction. It was developed by
Frederick Herzberg, a psychologist, who theorized that job satisfaction and job dissatisfaction
act independently of each other Two-factor theory distinguishes between:
 Motivators (e.g. challenging work, recognition, responsibility) that give positive

satisfaction, arising from intrinsic conditions of the job itself, such as recognition,
achievement, or personal growth.
 Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions) that
do not give positive satisfaction, though dissatisfaction results from their absence.
These are extrinsic to the work itself, and include aspects such as company policies,
supervisory practices, or wages/salary.
 An employee feels dissatisfied when the hygiene factors are not present in an
organization. The employee feels satisfied when the motivators are present in an
organization.
APPLICATION
In an organization, factors like salary, working conditions, job security are must. If these
factors are absent, then the employee will be very dissatisfied with the organization. The
existing employee will start looking for other opportunities and no new employee will like to
join if such mandatory factors are missing.
Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation
factors are needed to motivate an employee to higher performance. Herzberg also further
classified our actions and how and why we do them, for example, if you perform a work
related action because you have to then that is classed as movement, but if you perform a
work related action because you want to then that is classed as motivation. Thus, as HR
Managers, we must realize that not only the hygiene factors are important but motivation
factors also play a huge role for an employee to be fully satisfied. Following things can be
kept in mind by the HR Managers while motivating the employees:
 Insure hygiene factors are sufficient enough so employees don't become demotivated.
 Insure work is rewarding and challenging to motivate employees to work harder.
 Continually develop employees to keep motivation high.
 Reward and Recognise high achieving employees.
 If possible rotate employee’s roles to keep Job interest high.
 Insure employees have training resources to continually develop themselves.
McClelland’s Need Theory
 David McClelland identified three learned or acquired needs (manifest needs), they
were

1. Need for Achievement,
2. Need for Power, and
3. Need for Affiliation
The characteristics are as follows-
APPLICATION
Apply McClelland's theory to cultivate self-motivated achievement

Create a workplace that rewards self-motivated achievers. Use feedback and motivational
methods according to David McClelland. Theory must be practical to be effective in the
workplace.
Consider David McClelland motivation theory to refocus towards non-monetary incentives

Create a culture of employee recognition. When monetary motivation ceases so does the
need to succeed. Redirect finances away from economic incentives which produce little to no
tangible results and implement a needs-based employee recognition plan.
Create a fulfilling work setting using McClelland's achievement theory

Employees who actively participate in creating job duties are less likely to seek out other
employment. Encourage your staff to offer input on work assignments. Reduce staff turnover
using McClelland management theory as employees experience a stronger sense of
satisfaction. McClelland motivational theory encourages managers to provide staff with a
wide range of opportunities to achieve work-related goals

GOAL PATH THEORY
 Goal setting involves establishing specific, measurable, achievable, realistic and time-
targeted (S.M.A.R.T.) goals
 It ensures that participants in a group with a common goal are clearly aware of what
is expected from them
 Setting goals helps people work towards their own objectives—most commonly with
financial or career-based goals.
APPLICATION
Every organization/department should have a goal in mind. (Short time goal like- monthly
target or long term like Vision 2020). It is very important for these goals to be present because
these will give the team to a direction to work. Suppose the goal of the company is to be the
top pharma company by 2018, this will flow down to each department, and each department
will have an S.M.A.R.T goal of themselves. The goal of HR can be to attract the best talent
from the industry and therefore they can change their hiring techniques, rework on their
Employee Value Proposition to achieve this Goal. Similarly, the marketing team, sales team,
R&D team, operations etc all will have their own S.M.A.R.T goals.
ADAM’S THEORY OF INEQUITY
 Inequity is a situation in which a person perceives he or she is receiving less than he

or she is giving, or giving less than he or she is receiving.
 The belief is that people value fair treatment which causes them to be motivated to
keep the fairness maintained within the relationships of their co-workers and the
organization. The structure of equity in the workplace is based on the ratio of inputs
to outcomes
APPLICATION
According to equity theory, an employee's perception of the fairness of his work's input and
outcome influences his motivation. Effective performance management systems enable a
small-business manager to clarify job responsibilities and expectations, develop an
employee's capabilities, and align an employee's behaviour to the company's strategic goals
and values. An employee typically feels satisfied with the outcome of his effort, including his
pay, when the compensation matches what he feels he puts into the job. If an employee
perceives that others get more for doing less, he typically becomes less motivated to work
hard. Managers create a productive work environment by communicating job requirements
clearly and establishing fair and consistent performance objectives for all employees.

EXPECTANCY THEORY
 The Expectancy Theory of Motivation explains the behavioural process of why

individuals choose one behavioural option over another. It also explains how they
make decisions to achieve the end they value.
 Vroom introduces three variables within the expectancy theory which are valence (V),
expectancy (E) and instrumentality (I). The three elements are important behind
choosing one element over another because they are clearly defined: effort-
performance expectancy (E>P expectancy), performance-outcome expectancy (P>O
expectancy).
 Three components of Expectancy theory: Expectancy, Instrumentality, and Valence
1. Expectancy: Effort→Performance (E→P)
2. Instrumentality: Performance→Outcome (P→O)
3. Valence- V(R)- Valence: the value the individual places on the rewards based on
their needs, goals, values and Sources of Motivation
APPLICATION
Intrinsic rewards motivate workers by appealing to their sense of contribution and self-
importance - for example: pride, feeling of accomplishment, public praise etc. Researchers
found that intrinsic rewards are positively related to project success in terms of client
satisfaction. On the other hand, extrinsic rewards are external factors offered externally by
others to the workers- for example: job security, financial bonuses, time off, technical training
flexible work schedule, promotions etc. Ineffective rewards offered by organizations hinder
better staff performances because employee’s goals are not being fulfilled. Monetary rewards
don’t have long term effects, as they are mixed with other money allowances and soon
forgotten. Failure of monetary rewards can be prevented by recognizing the money limitation
and substituting it with other more cost-effective forms of rewards. Hence before designing
a Rewards system it is essential to take into consideration if the employee holds value for the
reward.

PERSONALITY
Personality is a relatively stable set of characteristics that influence an individual’s behaviour.
The Big Five Personality Model
It is a personality test that lays the premise that five basic dimensions underlie all others and
encompass the significant variation in human personality. These dimensions are:
 Extraversion captures one’s comfort level with relationships.

 Agreeableness refers to an individual’s propensity to defer to others.
 Conscientiousness is a measure of one’s reliability.
 Emotional stability taps a person’s ability to withstand stress.
 Openness to experience addresses range of interests and fascination with novelty.
ASSUMPTIONS
An HR Manager can use The Big Five Personality model to recruit employees. Certain
attributes are generally preferred in certain roles. For instance, for a sales job an
extraverted personality might be preferred over an introverted personality. For a role
which involves a lot of travel or relocation, a person with high openness to experience
might be preferred than a person with a low score on this. Companies use The Big Five
Model not only in recruitment but also to understand the general personality trait of an
individual which helps the manager to manage their employees in a more efficient way.
Myers-Briggs Type Indicator

 The MBTI assessment is psychometric questionnaire that asks people how they feel or
act in a given situation.
 It classifies people in to one of sixteen personality types based on the following four
dichotomies. It assumes that people are either one or the other and that there is no
in-between. Hence, the test determines the type and not the strength of the
preference of one extreme over the other.
 Extraverted (E) versus Introverted (I)
Sensing (S) versus Intuitive (N)
Thinking (T) versus Feeling (F)
Judging (J) versus Perceiving (P)
APPLICATION
Some of the benefits of using MBTI in organizations:
1. Acknowledge and work with differences
2. Actively understand those differences within a team
3. Improve and embrace different forms of communication
4. Encourage the strengths of each distinct personality type

Human Resources
Management
The process of acquiring, training, appraising, and compensating employees and of attending
to their labour relations, health and safety, and fairness concerns.
Recruitment and Training and

Selection Development
- Job Analysis - ADDIE Model
- Sourcing - Kirkpatrick Model
- Screening
- Lateral Hiring
Employee Lifecycle
Compensation Performance
and Benefits Management
Types of appraisal
- Compensation Performance - Balanced Score Card
Structure appraisals
Methods of appraisal
- Types of Benefits Advantages
1. Essay Appraisal
- Aon Hewitt Total Topics to be
2. Graphics Ratings Scale
Rewards Framework read
3. Ranking
4. Fields Review
5. BARS
6. MBO
7. Assessment centres
8. 360 degree feedback

1. Recruitment & Selection
Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates to one or more jobs within an organisation, either permanent or temporary.
Sources of Recruitment:
External Sources Internal Sources

Public employment agencies, Performance
professional Institutes Appraisals
Referrals Inventories
Advertisements, Assessment Job Posting
centres
Campus Placements HRIS
Trade Unions Assessment Centres
Internet Recruitment
Executive Search firms
Employment Exchanges
Head Hunters
Walk-ins, unsolicited resumes and
applications
Recruitment Process
Screening Lateral
Job Analysis Sourcing
and Selection Hiring
Job Analysis
Job analysis is the process of gathering and analyzing information about the content and the
human requirements of jobs, as well as, the context in which jobs are performed. This process
is used to determine placement of jobs.
Sourcing
Sourcing is the use of one or more strategies to attract or identify candidates to fill job
vacancies. It may involve internal and/or external advertising, using appropriate media, such
as local or national newspapers, specialist recruitment media, professional publications,
window advertisements, job centres, or in a variety of ways via the internet.

Screening and Selection
Suitability for a job is typically assessed by looking for relevant skills, knowledge, aptitude,
qualifications and educational or job related experience. These can be determined via:
screening resumes, job applications; interviews.
Lateral Hiring
Lateral hiring refers to the hiring of someone into a position that is at the same organizational
level or salary. It could mean hiring someone from another, similar organization, possibly
luring them with a better salary and the promise of better career opportunities.
Trends: Use of anonymous resumes, blind interviews to reduce personal bias while
conducting the interviews.
2. Training and Development
Training and development is a function of human resource management concerned with

organizational activity aimed at bettering the performance of individuals and groups in
organizational settings. Training and development encompasses three main activities:
training, education, and development.
 Training: This activity is both focused upon, and evaluated against, the job that an
individual currently holds.
 Education: This activity focuses upon the jobs that an individual may potentially hold
in the future, and is evaluated against those jobs.
 Development: This activity focuses upon the activities that the organization employing
the individual, or that the individual is part of, may partake in the future, and is almost
impossible to evaluate.
Methods of training include technology based learning, simulators, on-the-job training,

coaching/mentoring, lectures, group discussions and tutorials, role playing, management
games, outdoor training, films and videos and case studies etc.

Training and Development Process
Evaluate the training program
The four levels of Kirkpatrick's evaluation model essentially measure:
 reaction of student - what they thought and felt about the training
 learning - the resulting increase in knowledge or capability
 behaviour - extent of behaviour and capability improvement and
implementation/application
 results - the effects on the business or environment resulting from the trainee's
performance

Trends: Gamification learning and mobile learning will be the next thing in training &
development.
3. Performance Management
The continuous process of identifying, measuring, and developing the performance of

individuals and teams and aligning their performance with the organization’s goals.
Performance appraisal
Evaluating an employee’s current and/or past performance relative to his or her performance
standards.
Performance appraisal process
A three step appraisal process involving setting work standards or goals, assessing the
employee’s actual performance relative to those standards and providing feedback to the
employee with the aim of helping him or her to eliminate performance deficiencies or to
continue to perform above par.
Performance Appraisal implies a rational assessment of the performance of an individual,

based on pre-determined standards. On the other hand, performance management alludes
to the management of performance of the manpower working in an organization.
While Performance Appraisal is a yearly system while if we talk about Performance
Management, it is a continuous process that does not occur eventually.

Balanced Scorecard Framework
The main purpose of Performance Appraisal is to secure information necessary for making
objective and correct decision an employee.
PROCESS
The process of performance appraisal:
1. Establishing performance standards

2. Communicating the Standards
3. Measuring Performance
4. Comparing the actual with the standards
5. Discussing the appraisal
6. Taking Corrective Action
LIMITATIONS
1. Errors in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge

Who should Appraise Performance?
Manager/Supervisor Appraisal, Self---Appraisal,

Subordinate Appraisal, Peer Appraisal, Team
Appraisal, 360 degree appraisal
METHODS OF PERFORMANCE APPRAISAL
The foregoing list of major program pitfalls

represents a formidable challenge, even
considering the available battery of appraisal
techniques. But attempting to avoid these
pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by
committing suicide. The more logical task is to identify those appraisal practices that are (a)
most likely to achieve a particular objective and (b) least vulnerable to the obstacles already
discussed.
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations,
particularly those involving professional, sales, or managerial positions, essay appraisals from
former employers, teachers, or associates carry significant weight.
GRAPHIC RATING SCALE
This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is
he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors
that vary with the job but usually include personal traits like reliability and cooperation. It
may also include specific performance items like oral and written communication.
FIELD REVIEW
The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employee's rating with them to (a) identify areas of inter-rater disagreement,
(b) help the group arrive at a consensus, and (c) determine that each rater conceives the
standards similarly.
BARS (BEHAVIOURALLY ANCHORED RATING SCALES)
In this system scales are devised based on aspects of the employees’ behaviour. The superior
is asked to rate the performance of the employees on the basis of these scales.

FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a
third party.
MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so familiar
to most managers that I will not dwell on it here.
RANKING METHODS
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must somehow be added. There
is no single form or way to do this.
The best approach appears to be a ranking technique involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison ranking.
ALTERNATION RANKING
Ranking of employees from best to worst on a trait or traits is another method for evaluating
employees. Since it is usually easier to distinguish between the worst and the best employees
than to rank them, an alternation ranking method is most popular. Here subordinates to be
rated are listed and the names of those not well enough to rank are crossed. Then on a form
as shown below, the employee who is highest on the characteristic being measured and the
one who is the lowest are indicated. Then chose the next highest and the next lowest,
alternating between highest and lowest until all the employees to be rated have been ranked.
PAIRED-COMPARISON RANKING
This technique is probably just as accurate as alternation ranking and might be more so. But
with large numbers of employees it becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two
or more people are asked to make independent rankings of the same work group and their
lists are averaged), are among the best available for generating valid order-of-merit rankings
for salary administration purposes.

ASSESSMENT CENTERS
So far, we have been talking about assessing past performance. What about the assessment
of future performance or potential? In any placement decision and even more so in
promotion decisions, some prediction of future performance is necessary. How can this kind
of prediction be made most validly and most fairly?
360 DEGREE FEEDBACK
Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for pay
increases.
Most 360 Degree Feedback system contains several common features. Appropriate parties–
peers, supervisors, subordinates and customers, for instance – complete survey,
questionnaires on an individual. 360 degree feedback is also known as the multi-rater
feedback, whereby ratings are not given just by the next manager up in the organizational
hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self-appraisal. Once gathered in, the assessment from the
various quarters are compared with one another and the results communicated to the
manager concerned.
Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behaviour and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to "play God."
Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the
employee meets or exceeds the set objectives, then he or she has demonstrated an
acceptable level of job performance. Employees are judged according to real outcomes, and
not on their potential for success, or on someone's subjective opinion of their abilities.
The guiding principle of the MBO approach is that direct results can be observed easily. The
MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied
elements that go to make up employee performance. MBO advocates claim that the
performance of employees cannot be broken up into so many constituent parts, but to put
all the parts together and the performance may be directly observed and measured.
Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be reasonably
accomplished. Supervisors and subordinates must have very good "reality checking" skills to
use MBO appraisal methods. They will need these skills during the initial stage of objective
setting, and for the purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid
objectives may be distorted to disguise or justify failures in performance.
Benefits of Performance Appraisals
 Measures an employee’s performance.

 Helps in clarifying, defining, redefining priorities and objectives.
 Motivates the employee through achievement and feedback.
 Facilitates assessment and agreement of training needs.
 Helps in identification of personal strengths and weaknesses.
 Plays an important role in Personal career and succession planning.
 Clarifies team roles and facilitates team building.
 Plays major role in organizational training needs assessment and analysis.
 Improves understanding and relationship between the employee and the
reporting manager and also helps in resolving confusions and
misunderstandings.
 Plays an important tool for communicating the organization’s philosophies,
values, aims, strategies, priorities, etc. among its employees.
 Helps in counselling and feedback.
Rating Errors in Performance Appraisals
Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as
'rating errors'. These errors can seriously affect assessment results. Some of the most
common rating errors are:
Leniency or severity: - Leniency or severity on the part of the rater makes the assessment
subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings
are lenient for the following reasons:
a) The rater may feel that anyone under his or her jurisdiction who is rated unfavourably
will reflect poorly on his or her own worthiness.
b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the ratee.
c) He/She may rate leniently in order to win promotions for the subordinates and
therefore, indirectly increase his/her hold over him.
Central tendency: - This occurs when employees are incorrectly rated near the average or
middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems
from certain doubts and anxieties, which the raters have been assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error occurs
when an employee who works late constantly might be rated high on productivity and quality
of output as well as on motivation. Similarly, an attractive or popular personality might be

given a high overall rating. Rating employees separately on each of the performance
measures and encouraging raters to guard against the halo effect are the two ways to reduce
the halo effect.
Rater effect: -This includes favouritism, stereotyping, and hostility. Extensively high or low
score are given only to certain individuals or groups based on the rater's attitude towards
them and not on actual outcomes or behaviours; sex, age, race and friendship biases are
examples of this type of error.
Primacy and Regency effects: - The rater's rating is heavily influenced either by behaviour
exhibited by the ratee during his early stage of the review period (primacy) or by the
outcomes, or behaviour exhibited by the ratee near the end of the review period (regency).
For example, if a salesperson captures an important contract/sale just before the completion
of the appraisal, the timing of the incident may inflate his or her standing, even though the
overall performance of the sales person may not have been encouraging.
Performance dimension order: - Two or more dimensions on a performance instrument

follow each other and both describe or rotate to a similar quality. The rater rates the first
dimensions accurately and then rates the second dimension to the first because of the
proximity. If the dimensions had been arranged in a significantly different order, the ratings
might have been different.
Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably
influence current ratings. Past ratings, good or bad, result in similar rating for current period
although the demonstrated behaviour does not deserve the rating, good or bad.
Performance appraisal process is incomplete without the feedback given to the employee
about his appraisal and performance. It is the responsibility of the supervisor to provide a
constructive feedback to each employee under him, justifying his performance appraisal and
suggesting scope for improvements. The aim for feedback is to encourage individuals to
understand the performance measures that are available for them to use in order to assess
themselves and create a plan for their own career development.
ADDITONAL TOPICS TO READ:-
 Why are Companies moving away from bell curve?

 Employee Promotions and different ways of promotions.
 Alternatives to bell curve.
4. Compensation and Benefits

Total Rewards: Everything an employee gets from the employer that he/she finds rewarding-
Aon Hewitt.
All monetary and non-monetary elements provided to incent candidates to join the
organization, and to motivate the performance and engagement of existing employees who
are valued enough to retain as employeess-Bersin & Associates

The monetary and non-monetary return provided to employees in exchange for their time,
talents, efforts and results.-World at Work
External Influences: Successful organizations understand that total rewards must be designed
and administered in the context of not only an organization's internal environment (for which
organizations have direct control), but also influences external to the organization (for which
there is little or no control).
Business Strategy, Organizational Culture and Human Resources Strategy: Human resources
and employee rewards strategies should be based on the organization's business strategy. At
the same time, every business has a unique organizational culture that is affected by the
external influences in the world, as well as by senior leadership, geography, employee
demographics and even the business strategy itself. Business strategy and organizational
culture drive the design and execution of the human resources strategy that, in turn, shapes
the development and administration of total rewards strategy. Total Rewards Strategy: The
six elements of total rewards include programs, practices, elements and dimensions that
collectively define an organization's strategy to attract, motivate, retain and engage
employees. These elements represent the tool kit from which an organization chooses to
offer and align a value proposition that results in satisfied, engaged and productive employees
who, in turn, create desired business performance and results. A brief description of the six
elements:
 Compensation: Pay provided by an employer to its employees for services
rendered (i.e., time, effort, skill). This includes both fixed and variable pay tied to
performance levels.
 Benefits: Programs an employer uses to supplement the cash compensation

employees receive. These health, income protection, savings and retirement
programs provide security for employees and their families.
 Work-Life Effectiveness: A specific set of organizational practices, policies and

programs, plus a philosophy that actively supports efforts to help employees
achieve success at both work and home.
 Recognition: Either formal or informal programs that acknowledge or give special

attention to employee actions, efforts, behaviour or performance and support
business strategy by reinforcing behaviours (e.g., extraordinary accomplishments)
that contribute to organizational success.
 Performance management: The alignment of organizational, team and individual

efforts toward the achievement of business goals and organizational success.
Performance management includes establishing expectations, skill
demonstration, assessment, feedback and continuous improvement.
 Talent development: Provides the opportunity and tools for employees to advance
their skills and competencies in both their short- and long-term careers.

The Result: The desired outcome of an organization's total rewards strategy is business
performance and results through the work of engaged employees who contribute their time,
talent and efforts. An effective total rewards strategy produces a workforce that has the right
people in the right jobs who are motivated and engaged to do the right things – and feel loyal
to the organization and its success.
The Aon Hewitt Total Reward Framework:
Everything an employee receives from an employer (i.e., not just those elements listed above
as examples) can be positioned within this framework, depending on whether the reward
element is:
 Financial or Experiential—financial elements have a clearly defined value or cost,
while experiential elements are those the employee experiences through
interaction with the company, leadership, management, colleagues, and
customers.
 Personal or Company—some rewards are tailored to the individual (e.g., salary,
bonus, personal goals, development plan, etc.), while others are provided in more
or less the same way to all employees (e.g., benefits, culture, work environment).
Key areas of Total Rewards:
Compensation
The difference between wage and salary defines more than what one ends up making per
year. The terms can be used to describe differences in types of work, as well as what is actually
counted in the final total.

Wages are generally paid per hour. This means that one has to be present and working in
order to get paid. Most of the time, wage jobs are not as inclusive when it comes to things
like paid vacations, or paid sick days. Wage earners often have to give up pay for leaving early,
coming in late, missing a day, or taking a vacation.
Salary refers to how much you get paid every year. Salary earners rarely have to punch a time
clock, or keep an accurate account of their hours, because they get paid for performance
rather than by the hour. Salary can also be counted in terms other than money. Some
companies consider reimbursement for things like medical insurance as part of your salary.
One can find companies incorporating education and retirement contributions as part of
one’s salary package.
Components of Compensation
Fixed Pay: The nondiscretionary compensation that does not vary according to performance
or results achieved. It usually is determined by the organization's pay philosophy and
structure. Also, known as guaranteed or committed pay. Sub components:
1. Basic Salary: Core of the salary as a number of components may be calculated based on this
amount.
2. Allowances: Fixed quantity of money for the purpose of meeting particular requirements
connected with service. The organisations are free choose the allowances depending on
organizational and employee requirements. A few key allowances are:
a) House Rent Allowance: - Provided that expenditure on rent is actually incurred
b) Leave Travel Allowance: - For travel to any place in India. For Self, Spouse, Children &
Dependent Parents & Siblings
c) Uniform Allowance:-Allowance granted to meet the expenditure incurred on the purchase
or maintenance of uniform for wear during the performance of the duties of an office or
employment of profit
d) Children Education Allowance & Children Hostel Allowance
e) Transport Allowance: -To compensate the cost incurred in commuting between place of
residence and place of work.
3. Medical Reimbursement: The expenses incurred by employee to meet health related
expenditure, such as medicines, doctor's fees etc. of the employee and his family members.
4. Medical Insurance
5. Meal Coupons
6. Gift Vouchers
7. Retirals: While Provident Fund and Gratuity are mandatory, the other schemes are the
discretion of the employer.
Scheme Employee Employer

Contribution Contribution
Employee Provident Fund 12% 3.67%

Employee Pension Scheme 0 8.33%
Employees Deposit Linked 0 0.50%
Insurance
Gratuity (Eligible to receive it NA NA
only after completing five
years of continuous service
with the concerned
organizations)
Super Annuation NA NA
Variable Pay: Also referred to as ‘Pay at Risk’ – is part of the compensation package that has
to be earned usually by meeting and exceeding individual, team, organization performance
criteria. Variable pay instils the following:
1. Discretionary effort
2. Links reward to performance and promotes common interests
3. Shouldering more business risks – rewarding ‘upside’ and penalizing ‘downside’ of

performance
Types:
1. Short term incentive plans (Typical time interval for payout- a year):
Examples:
 Gain sharing or profit sharing plans.
 Broad-based corporate incentive plans
 Commission plans.
2. Long term incentive plans. It aims to:
a. Keeping employees ‘invested’ in the performance of the organisation
b. Retention
Benefits
Programs an employer uses to supplement the cash compensation that employees receive.
Benefits supplement compensation by providing employees with a level of security related
specifically to health and welfare, retirement and time off. Benefits programs may be
categorized into income-protection programs and paid time off programs. Types of Benefits:

Recognition Acknowledges or gives special attention to employee efforts or positive
performance. It meets an intrinsic psychological need for appreciation and can support
business strategy by reinforcing certain behaviours that contribute to organizational success.
Awards can be cash or non-cash (e.g., verbal recognition, trophies, certificates, plaques,
dinners, tickets, etc.). Types:

Compensation Process
Difference between Job Description and Job Specification

LABOR LAWS

•The Industrial Employment (Standing Orders) Act
Employment 1946
Contracts •The Contract Labour (Regulation and Abolition) Act
1970
Dismissal •The Industrial Disputes Act 1947

Regulation
•The Payment of Wages Act 1936

•The Minimum Wages Act 1948
Wage Regulation •The Payment of Gratuity Act 1972
•The Payment of Bonus Act 1965
•The Factories Act, 1948

•The Employee's Compensation Act, 1923
Health & Safety •The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
•The Maternity Benefit Act 1961
•The Employees' Provident Fund and Miscellaneous

Pensions & Provisions Act 1952
Insurance •The Employees' State Insurance Act 1948
Workplace •The Trade Unions Act 1926

Participation •The MRTU and PULP Act, 1971
Equality •The Equal Remuneration Act, 1976
Unorganized Sector •The Bombay Shops & Establishment Act, 1948
A broad segmentation of the most prominent labour laws have been clubbed together for your better
understanding:

The Contract Labour (Regulation & Abolition) Act, 1970
Objective
The Contract Labour (Regulation and Abolition) Act, 1970, is a piece of central legislation which
provides for the abolition of contract labour wherever possible and for the regulation of the conditions of
contract labour in establishments or employments where the abolition of contract labour system is
not considered feasible for the time being.
Applicability
The Act applies to the Principal Employer of an Establishment and the Contractor wherein 20 or
more workmen are employed or were employed on any day of the preceding 12 months as Contract
Labour.
This Act does not apply to the Establishments where work performed is of intermittent or seasonal
nature. It will not be intermittent in nature if work is performed for more than 120 days in the past 12
months or more than 60 days if seasonal in nature.
Compliance Requirements
 The Act provides for registration and licensing by every principal employer and contractor
respectively.
 A contractor is required to provide certain welfare facilities to the contract labor and maintain
records and registers in accordance with the rules framed under the Act.
 If a contractor fails to do so, it is the ultimate obligation of the principal employer to provide the
statutory amenities.
The Industrial Disputes Act, 1947
Scope & Objective

The aim of The Industrial Dispute Act, 1947 is to protect the workmen against victimization by the
employers and to ensure social justice to both employers and employees. The unique objective of the
Act is to promote collective bargaining and to maintain a peaceful atmosphere in industries by
avoiding illegal strikes and lock outs. The Act also provides for regulation of lay off and retrenchment.
The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by negotiations.

Applicability
 The enterprise is an ‘industry’ as defined in ID Act and passes the triple test as per Bangalore
Water Supply and Sewage Vs. A. Rajappa 1978
 When there is an ‘industrial dispute’ as defined in the act
 When the dispute is related to workmen as defined in the act
2(k) "industrial dispute" means any dispute or difference between employers and employers, or
between employers and workmen, or between workmen and workmen, which is connected with the
employment or non-employment or the terms of employment or with the conditions of labor, of any
person;
Settlement [Sec. 2(p)]: Settlement means a settlement arrived at in the course of conciliation
proceeding and includes a written agreement between an employer and a workman arrived at
otherwise than in the course of conciliation proceeding where such agreement has been signed by the
parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer
authorized by the Appropriate Government and the Conciliation Officer.
Industrial Dispute can arise out of the following cases:
 Dismissal of workman
 Discharge of workman
 Retrenchment of the workman
 Termination of workman from his services
WORKS COMMITTEE [Sec. 3]: In the case of an industrial establishment in which 100 or more
workmen are employed, the appropriate Government may require the employer to constitute a 'Work
Committee'. It consists of equal number of representatives of employers and workmen engaged in the
establishment. The representatives of the workmen shall be chosen from amongst the workmen
engaged in the establishment and in consultation with the registered trade union, if any. Works
committee deals with the workers problem arising day to day in the industrial establishment.
ARBITRATION:
Voluntary reference of disputes to arbitration. [sec. 10 (a)]: An arbitrator is appointed by the

Government on the consent of both the parties involved in an Industrial Dispute. Whether the dispute
is before the Labor Court, the Industrial Tribunal or the National Tribunal, the parties can go to
arbitration by written agreement. The arbitrators conduct the investigation in to the dispute matters
and give arbitration award (final decision or settlement or decree) as for making reference of an
industrial dispute. If an industrial dispute exists or is apprehended and the employer and the workman

may agree to refer the dispute to an arbitrator. But such reference shall be made before the dispute
has been referred under Sec. 19 to a Labour Court or Tribunal or National Tribunal by a written
agreement. The arbitrator may be appointed singly or more than one in number. The arbitrator or
arbitrators shall investigate the dispute and submit to the appropriate Government the arbitration
award signed by the arbitrator or all the arbitrators, as the case may be.
STRIKES AND LOCKOUTS
Strike [Sec. 2 (q)]: Strike means "a cessation of work by a body of persons employed in any
industry acting in combination or a concerted refusal under a common understanding of any
number of persons who are or have been so employed, to continue to work or to accept
employment". Mere stoppage of work does not come within the meaning of strike unless it
can be shown that such stoppage of work was a concerted action for the enforcement of an
industrial demand.
Lockout [Sec. 2(1)]: Lockout means "the temporary closing of a place of employment, or the
suspension of work, or the refusal by an employer to continue to employ any number of
persons employed by him". Lockout is the antithesis of strike. Legal strikes and
Lockouts [Section 24 of ID Act 1947]
A strike or a lockout shall be illegal, if employers or worker disobeys or fails to follow [Sec
22, 23, 10(3), 10-A (4-A)] for commencing strikes or lockout.
 Section 22 Prohibition of strikes and Lockouts (Notice is mandatory in

public utility services)
 Section 23 General prohibition of strikes and Lockouts (if the said matter is pending
before board, a Labour Court, Tribunal or national tribunal or arbitrator as mentioned under
Sec 10 & 10A or settlement or about is in operation)
 Section 10 Reference of disputes to Boards, courts or Tribunals
 Section 10A Voluntary reference of disputes to arbitration
(3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an

illegal lock-out shall not be deemed to be illegal.

RETRENCHMENT & LAYOFF
[Section 2(oo)]
"Retrenchment" means the termination by the employer of the service of a workman for any reason
whatsoever, otherwise than as a punishment inflicted by way of disciplinary action but does not
include-
(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the contract of
employment between the employer and the workman concerned contains a
stipulation in that behalf; or termination of the service of the workman as a result of
the non-renewal of the contract of employment between the employer and the
workman concerned on its expiry or of such contract being terminated under a
stipulation on that behalf contained therein; or
(c) termination of the service of a workman on the ground of continued ill-health;
Lay off- means the failure, refusal or inability of an employer on account of:
A. shortage of coal, power or raw materials
B. the accumulation of stocks or the breakdown of machinery or natural calamity
To give employment to a workman whose name is borne on the muster rolls of his
industrial establishment and who has not been retrenched.

The Factories Act, 1948
Objective:
Factories Act, 1948 has been enacted to regulate the working conditions in factories and to ensure
provision of the basic minimum requirements for safety, health and welfare of the workers as well as
to regulate the working hours, leave, holidays, employment of children, women, etc.
Applicability:
 Factories Act, 1948 extends to whole of India.
 It applies to all factories as defined under the Act.
Manufacturing Process:
Section 2(k) states "manufacturing process" means any process for
 (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning,
breaking up, demolishing or otherwise treating or adopting any article or substance with a
view to its use, sale, transport, delivery or disposal; or
 (ii) pumping oil, water, sewage, or any other substance; or
 (iii) generating, transforming or transmitting power; or
 (iv) composing types for printing, printing by letter press, lithography, photogravure or other
similar process or book-binding; or
 (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels;
or
 (vi) preserving or storing any article in cold storage
Applicability:
 Any premises including the precincts thereof where 10 or more workers are or were working
on any day of the preceding 12 months and in any part of which a manufacturing process is
being carried on with the aid of power.
 Any premises including the precincts thereof where 20 or more workers are or were working
on any day of the preceding 12 months and in any part of which a manufacturing process is
being carried on without the aid of power.
Some salient features of the act:
1. Inspection of factories by District Inspectors of Factories, for investigation of complaints,

serious/fatal accidents as well as suo moto inspections to check compliance of provisions of
this Act relating to

- Health
- Safety
- Welfare facilities
- Working hours
- Duties of occupier
- Annual Leave with wages
Working Hours:
 Ordinarily, a worker should not be allowed to work in a factory for more than 48 hours in any
week. {Section 51}
 Subject to the provisions of Section 51 no worker should be allowed to work more than 9
hours in a day. {Section 54}
 The timings of work should be fixed in such a way that no worker should be required to work
continuously for more than five hours; and he should be allowed to avail an interval for rest
of at least half-an hour during his work in a day. {Section 55}
 The period of work of a workman should be so arranged that inclusive of his interval for rest
under Section 55 should not spread over more than ten and a half hours in any day. {Section
56}
 The workman should have one holiday for a whole day in a week. Where he was asked to
work on his scheduled weekly holiday, he should be given compensatory holiday within three
days of his scheduled weekly holiday. {Section 52}
2. No child who has not completed his 14th year shall be required or allowed to work in any
factory. Anyone who is guilty of contravention of the Act shall be guilty of an offence and
punishable with imprisonment for a term which may extend to 2 (Two) years or with fine
which may extend to INR 1, 00,000 (INR One Lakh) or with both.
3. Duties of the Occupier: To ensure the health, safety and welfare of all workers while they are
at work in the factory, The arrangements in the factory for ensuring safety and absence of
risks to health in connection with the use, handling, storage and transport of articles and
substance; the provision of such information, instruction, training and supervision as are
necessary to ensure .the health and safety of all workers at work.
4. S59 Extra wages for overtime: Where a worker works in a factory for more than nine hours in
any day or for more than forty-eight hours in any week, he shall, in respect of overtime work,
be entitled to wages at the rate of twice his ordinary rate of wages.
5. Restrictions on employment of women- no woman shall be required or allowed to work in

any factory except between the hours of 6 am and 7 pm provided that the State Government
may, by notifications in the Official Gazette, vary the limits, but no such variation shall
authorize the employment of any woman between the hours of 10 P.M. and 5 A.M.

6. Annual Leave with wages- Every worker who has worked for a period of 240 days or more in
a factory during a calendar year shall be allowed during the subsequent calendar year, leave
with wages for a number of days calculated at the rate of:
A. if an adult, one day for every twenty days of work performed by him during the
previous calendar year
B. if a child, one day for every fifteen days of work performed by him during the previous
calendar year
7. Creches- In every factory wherein more than 30 women workers are ordinarily employed
there shall be provided and maintained a suitable room or rooms for the use of children under
the age of six years of such women
The Bombay Shops and Establishment Act 1948
Objective
An Act to consolidate and amend the law relating to the regulation of conditions of work and
employment in shops, commercial establishments, residential hotels, restaurants, eating houses,
theatres, other places of public amusement or entertainment and other establishments
Applicability
It extends to the whole of the State of Maharashtra.
Act Overview
 The general rule about the opening hours of shops is that they are not allowed to be opened earlier
than 7 a.m. but shops selling goods like milk, vegetable, fish, etc., are allowed to be opened from 5a.m.onwards
 The general rule about the closing hours of shops is that they must be closed at the latest by
8:30p.m. But shops selling goods like pan, bidi etc., are allowed to be kept open up to11 p.m.
 Commercial establishments are not allowed to be opened earlier than 8:30 a.m.& closed later
than 9:30 p.m. in a day
 An employee in a shop or commercial establishment cannot be required or allowed to work

for more than 9 hrs in a day & 48 hrs in a week.
 He must be allowed an interval of rest of at least 1 hr after 5 hrs of continuous work.

 His spread-over cannot exceed 11hrs in a day

 Every shop & commercial establishment should remain closed on one day of the week. No
deduction can be made from the wages of any employee in a shop or commercial
establishment on account of any day on which it has so remained closed.
 The employment of children is totally prohibited. Anybody who is below the age of 15 yrs is
considered to be a child. No child can be required or allowed to work whether as an employee
or otherwise in any establishment.
 Anybody between the age of 15 yrs & 17 yrs is considered to be young person. No young
person can be required or allowed to work, whether as an employee or otherwise, in any
establishment-
(a) After 7:00p.m.
(b) For more than 6 hrs in a day
(c) If the work involves danger to life, health or morals
Leave with Wages
The main provisions of the Act about the grant of annual leave with wages are as follows:
(a) An employee is entitled to annual leave with pay of 21 days for 240 days of work.
(b) An employee who has not worked for one year is entitled to leave with pay for 5days for every 60
days of work
(c) An employee is entitled to be paid before his leave begins, half the amount of his leave pay
(d) Leave with pay can be accumulated up to 42 days
Applicability of other Acts
The Payment of ages Act, 1936
Workmen’s Compensation Act, 1923
Industrial Employment (Standing Orders) Act, 1946
Maternity Benefit Act, 1961

Payment of Wages Act, 1936
Objective
The main purpose of the Payment of Wages Act is to ensure regular and prompt payment of wages
and prevent exploitation of the wage earner by prohibiting unauthorized deductions from wages.
Applicability
Persons drawing less than Rs. 10,000 per month, in respect of a wage period, are covered under the
Act.
The Act applies to factories, railways, the construction industry, civil air transport services, motor
transport services, mines, plantations, oilfields, docks and wharfs or jetties.
The Act stipulates that wages must be paid within seven days from the date of expiry of the wage period
in establishments employing less than one thousand persons and within ten days in establishments
employing more than one thousand persons.
Recent Amendments
Rajya Sabha has passed the Payment of Wages Amendment Bill 2017 which allows employers
to pay wages in non-cash mode without formal approval from workers, a day after the Lok
Sabha passed it.
The bill will now be sent to the President for his assent.
This will benefit workers in terms of fair payments, bring more workers into formal
employment and allow more workers to get social security benefits, labour minister Bandaru
Dattatreya said in the Rajya Sabha during a debate over the bill in the house.
The change in law is part of the National Democratic Alliance (NDA) government’s ongoing
drive to create a less-cash economy.
Under the Payment of Wages Act 1936, employers can use cheque or bank transfers to pay
wages only with a written authorization from the employee. The amendment bill, once it
becomes an Act, will allow employers to pay in cash, cheque or credit the amount directly to
a bank account, even without a worker’s approval.

The Minimum Wages Act, 1948
Objective
This Act aims to extend the concept of social justice to the employees employed in certain
scheduled employments including agriculture.
Applicability
Provisions of the Act are applicable to any employer who employs any person in a scheduled
employment within the Indian Territory in the organized workforce sector.
 The Act ensures protection to workers in employments in which they are vulnerable to exploitation
on account of lack of organizations and bargaining power and where sweated labor is most prevalent.
 The Act provides for statutory fixation and revision off minimum rates of wages by the central or
state governments within a specified period.
 The employer is bound to pay minimum rates of wages fixed by the government to every employee
covered under the scheduled employment.
The Payment of Gratuity Act, 1972
Applicability
This act applies to every factory, mine oil field, plantation, port and railway company; every shop or
establishment within the meaning of any law in relation to shops and establishments in a state in
which 10 or more persons are employed on any day of the preceding 12 months; Every such other
establishments in which in which 10 or more persons are employed on any day of the preceding 12
months as notified by central government.
Eligibility
Gratuity is payable to an employee on the termination of his employment after his continuous
service of not less than 5 years (not applicable in case of death or disablement). In the case of death
of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been
made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall
be deposited with the controlling authority who shall invest the same for the benefit of such minor
in such bank or other financial institution, as may be prescribed, until such minor attains majority.
For every completed year of service or part thereof in excess of six months, the employer shall pay
gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by
the employee concerned

Recent Amendments Proposed
Formal sector workers may soon be eligible for up to Rs 20 lakh (up from the earlier Rs 10 lakh limit)
tax-free gratuity as central trade unions have agreed on the proposal in a tripartite consultation with
the Labor Ministry.
The Trade Unions Act, 1926

The Trade Unions Act, 1926 provides the process of registration of trade unions; confer a legal and
corporate status on registered trade unions. The TU act however, does not provide for recognition of
Trade Unions.
Definition of Trade Union

Section 2(h) of the Trade Unions Act 1926 defines Trade Union as a combination, temporary or
permanent, formed primarily for the purpose of regulating the relations between workmen and
employer, workmen and workmen, or employers and employers, or for imposing restrictive condition
on the conduct of any trade or business, and includes the federation of two or more trade unions
Formation of Trade Union

If the number of employees in the particular establishment is less than 100 then 10% of the total
employees is required to form a trade union,
If the number of employees in a particular establishment is more than 100 then the minimum number
of members required to form a trade union is 100
Appointment of office bearers

At least 50% of the office bearers of a union must be actually engaged or employed in the industry
with which the trade union is concerned, and the remaining 50% or less can be outsiders such as
Lawyers, politicians, social workers etc.
To be appointed as an office bearer or executive of a registered trade union, a person must have
A. attained the age of 18 years; and
B. has not been convicted of any offence involving moral turpitude and sentenced to
imprisonment, or a period of at least 5 years has elapsed since his release.
Rights of minors to membership of trade unions
Any person who has attained the age of fifteen years may be a member of a registered trade
union subject to any rules of the trade union and can enjoy all the rights of a member

Immunity from civil suit in certain cases
Office Bearers of a registered trade union get protection from civil suits and legal proceedings
in case of a trade dispute which is subject to further conditions
Objectives of a Trade Union
o To improve the working conditions of workers by securing better wages for them through
collective bargaining and negotiations
o To ensure stable employment for workers and resist the schemes of management which
reduce employment opportunities.
o To provide legal assistance to workers in connection with disputes regarding work payment
of wages, retrenchment, layoff etc.
o To ensure that workers get as per rules provident fund, pension and other benefits.
o To secure for the workers better safety and health welfare schemes.
o To secure workers participation in management.
o To secure organizational efficiency and high productivity.

The Maharashtra Recognition of Trade Unions and Prevention of
Unfair Labor Practices Act (MRTU and PULP), 1971
Important state law protecting against Unfair Labor Practices is the Maharashtra Recognition of Trade
Unions and Prevention of Unfair Labor Practices Act 1971 (MRTU & PULP Act).
It provides important legal safeguards for workers against victimization and persecution at the hands
of their employers
The main objectives of the Act are:
(a) To recognize certain trade unions for promoting collective bargaining;
(b) To prevent certain unfair labor practices on the part of the employers, employees and trade unions,
and
(c) To minimize strikes and lock-outs.
The Act provides for the recognition of trade unions for
- facilitating collective bargaining for certain undertakings, to state their rights, and obligations;
- to confer certain powers on unrecognized unions; to provide for declaring certain strikes and
lock-outs as illegal strikes and lock-outs;
- to define and provide for the prevention of certain unfair labor practices; to constitute courts
(as independent machinery) for carrying out the purposes of according recognition to trade
unions and
- for enforcing the provisions relating to unfair practices; and
- provide for matters connected with the purposes aforesaid.
The Act is applicable to:
(a) Every industry to which the Bombay Industrial Relations Act, 1946, applies for the time being, and
(b) Every industry to which the Industrial Disputes Act, 1947
Employee's Provident Fund Act, 1952

Objective:
The objective of this act is to provide substantial security and timely monetary assistance to
industrial employees and their families.
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is enacted to provide social
security to the industrial workers.

The Employees' Provident Funds and Miscellaneous Provisions Act mainly provides retirement or old
age benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension
and Deposit Linked Insurance.
Applicability:
The Employees’ Provident Funds Scheme is applicable from the date of functioning or date of
set-up of establishment provided the factory/establishment employed twenty or more
persons. Once applied, it does not cease to be applicable even if the number of employees
falls below 20.
Amendment:
The Central Government has amended the ceiling for contributions under the (EPF Act) and
the 1952 (EPF Scheme) from INR 6,500 to INR 15,000 from 2014
The Act provides for three schemes:
 Employees’ Provident Fund Scheme

 Employees’ Pension Scheme
 Employees’ Deposit Linked Insurance Scheme
Employers Contribution: 12% of the employees’ monthly salary is broken into the following parts:
1. 8.33% towards the pension scheme

2. 3.67% towards provident fund
3. Additional 0.5% towards insurance scheme
Employees Provident Fund Organisation has introduced a new notification, in which special
drive will be initiated from 1st January, 2017 by the EPFO for coverage of the Establishment
which are not yet covered but which are liable for EPF coverage.
Employees’ Provident Fund Scheme
The provident fund contributions consist of contribution both by Employee and by Employer.
Provident fund contribution is recovered @ 12% of wages from employees who earn up to a maximum
wage of ₹15,000 p.m.
An employee can contribute voluntarily over and above the stipulated rate of PF contribution
by opting for Voluntary PF scheme at any rate as he / she desires i.e. up to 100% of Wages.
But the employer is not bound to contribute at the enhanced rate.

Employees’ Pension Scheme
A member shall be entitled to:
a. “Superannuation Pension”, if he has rendered eligible service of 10 years or more and

retires on attaining the age of 58 years.
b. “Early Pension”, if he has rendered an eligible service of 10 years or more and retires or
otherwise ceases to be in employment before attaining the age of 58 years.
Employees’ Deposit Linked Insurance Scheme
Under EDLI scheme, employees are given life insurance cover. i.e., in the event of natural or
accidental death of the insured employee, the beneficiary nominated by the employee is
entitled to get lump sum money. Amount paid to PF for EDLI insurance = (0.5% X Basic salary
of the employee, capped at INR 15000 salary)
The Employees’ Compensation Act, 1923

The Act envisages social protection of workers in the organized sector in contingencies, such as
sickness, death or disablement due to employment injury and occupational disease.
Applicability:
1. The Act is applicable to non-seasonal factories employing 10 or more persons.

2. The Scheme has been extended to shops, hotels, and restaurants, cinemas including preview
theatres, road-motor transport undertakings and newspaper establishments employing 20 or
more persons.
3. The Scheme has been extended to Private Medical and Educational institutions employing 20
or more persons in certain States/UTs.
The Maternity Benefit (Amendment) Act, 2017
The Maternity Benefit (Amendment) Bill, 2016 was passed by the Lok Sabha months after
the Rajya Sabha approved the measure that makes India third on the list of countries
with most maternity leave, after Canada and Norway where it is 50 weeks and 44 weeks
respectively. The Bill is an amendment to The Maternity Benefit Act, 1961, which
protects the employment of women and entitles her to full-paid absence from work to
take care for her child.
Here are the important takeaways from the landmark Bill:

 Women working in the organised sector will now be entitled to fully paid maternity leave
of 26 weeks, up from 12 weeks. Once the Bill is law, it will benefit about 1.8 million women.
 The Bill also provides for maternity leave of 12 weeks to mothers adopting a child below
the age of three months as well as to commissioning mothers (defined as a biological
mother) who uses her egg to have a surrogate child. In such cases, 12-week period of
maternity leave will be calculated from the date the child is handed over to the adoptive
or commissioning mother.
 It also makes it mandatory for every establishment with more than 50 employees to
provide crèche facilities within a prescribed distance. The woman will be allowed four visits
to the crèche in a day. This will include her interval for rest.
 The new law will apply to all establishments employing 10 or more people and the
entitlement will be for only up to first two children. For third child, the entitlement will be
for only 12 weeks.
The Bill has a provision under which an employer can permit a woman to work from home, if
the nature of work assigned permits her to do so. This option can be availed of, after the period
of maternity leave, for a duration that is mutually decided by the employer and the woman.
The Sexual Harassment at the Workplace (Prevention, Prohibition

and Redressal) Act and Rules, 2013
Objective
The Act provides for protection against sexual harassment of women at workplace and for the
prevention and redressal of complaints of sexual harassment and for matters connected therewith or
incidental thereto.
Applicability
The ambit of the Sexual Harassment Act is very wide and is applicable to the organized sector as well
as the unorganized sector.
 The new sexual harassment act 2013 is similar terms as the Vishaka Judgment punishable up to
five years rigorous imprisonment with/without fine or both. The Act defines ‘sexual harassment’ to
include such unwelcome sexually determined behavior (whether directly or by implication) such as:
i. Physical contact and advances;
ii. Demand or request for sexual favors;
iii. Sexually colored remarks;

iv. Showing pornography; and
v. Any other unwelcome physical, verbal or non-verbal conduct of sexual nature
 Internal Committee (IC) and the Local Committee (LC): The Sexual Harassment Act
requires an employer to set up an 'Internal Committee' at each office or branch, of an organization
employing at least 10 employees.
 Interim Reliefs: The Sexual Harassment Act empowers the IC and the LC to recommend
to the employer, at the request of the aggrieved employee, interim measures such as
(i) Transfer of the aggrieved woman or the respondent to any other workplace; or
(ii) Granting leave to the aggrieved woman up to a period of 3 months in addition to her regular
statutory/ contractual leave entitlement.
Employer's obligations
In addition to ensuring compliance with the other provisions stipulated, the Sexual Harassment Act
casts certain obligations upon the employer to, inter alia,
 Provide a safe working environment

 Display conspicuously at the workplace, the penal consequences of indulging in acts that may
constitute sexual harassment and the composition of the Internal Complaints Committee
 Organize workshops and awareness programs at regular intervals for sensitizing employees on
the issues and implications of workplace sexual harassment and organizing orientation programs for
members of the Internal Complaints Committee
 Treat sexual harassment as misconduct under the service rules and initiate action for
misconduct.

AT A GLANCE
Scheme Employee Employer

contribution contribution
Employee
provident fund 12% 3.67% Total Employer
(EPF) Contribution 12%
Employees’ 8.33% (subject to (3.67% + 8.33%)
Pension scheme 0 a maximum of
(EPS) INR 1250)
Employees 0.5% (subject to a
Deposit Linked 0 maximum of INR
Insurance (EDLI) 75)
Gratuity (Post Gratuity = Last drawn wages × 15/26 ×
five years of 0 Completed years of Service (including a
continuous part of year in excess of six months)
service)
Total ESI
contribution
(6.5%)
Employee State 1.75% 4.75% ESI Scheme only
Insurance (ESI) applicable to
Fund employees
earning INR
15,000 or less per
month
Note: EPF and EPS calculation done on Basic Salary only, EDLI calculated on Dearness
Allowance plus Basic Salary, Gratuity on Last Drawn Wages, ESI on total monthly salary (Basic,
DA, City Compensatory Allowance, HRA, meal allowance, attendance bonus)

MISCELLANEOUS
HR ANALYTICS
Definition
Human resource analytics (HR analytics) is an area in the field of analytics that refers to applying
analytical/ statistical processes to the human resource department of an organization with the aim of
improving employee performance and therefore getting a better return on investment. HR analytics
does not just deal with gathering data on employee efficiency. Instead, it aims to provide insight into
each process by gathering data and then using it to make relevant decisions about how to improve
these processes.
Significance
What HR analytics does is correlate business data and people data, which can help establish important
connections later on. The key aspect of HR analytics is to conclusively show the impact the HR
department has on the organization as a whole. Establishing a cause-and-effect relationship between
what HR does and business outcomes - and then creating strategies based on that information - is
what HR analytics is all about.
HR has core functions that can be enhanced by applying processes in analytics. These are acquisition,
optimization, paying and developing the workforce of the organization. HR analytics can help to dig
problems and issues surrounding these requirements and using analytical workflow will guide the
managers to answer questions and gain insights from information at hand, then make relevant
decisions and take appropriate actions.
Scope
With data becoming widely available and more easily accessible, industries are quick to realize the
value of insights that analytics can uncover. Analytics has helped police departments reduce crime,
credit card companies detect fraud, companies reduce customer churn rates, and baseball teams win
World Series. In Human Resources, with the automation of many HR transactions, from recruitment
to retirement along with the need to perform strategically, analytics of the workforce is more
important than ever. HR analytics is a lot more than head-counting--it's about the total amount and
the quality of talent, knowledge, and expertise to move your organization forward and stay ahead of
competition. It's about measuring the return on human capital investment and measuring the impact
and how HR is driving performance, productivity, and profitability. In many different studies, HR seems
to be lagging in this era of analytics and big data. But analytics of the workforce, a company's most
important asset, should be an opportunity for businesses, particularly for HR, to transform itself and
align with the business strategy.

Dave Ulrich’s Key HR Roles
1. HR Business Partner/ Strategic Partner: The HR business partner is tasked with

communicating with so-called ‘internal clients’ or ‘internal customers.’ (These are terms that
refer to people directly connected with an organization, and include employees,
shareholders, stakeholders, creditors, and more.) The HR business partner is the HR point-of-
contact for these individuals. Among other things, the HR business partner gives feedback to
internal customers about the quality of their experience, identifies top talents within the
organization, helps fill job vacancies, shares HR goals with employees to ensure they are
implemented across the organization, and helps promote overall productivity and harmony
in the workplace.
2. Change Agent: When an organization is required to expand, evolve, or otherwise alter its
goals or objectives, the change agent is the Human Resources role that communicates those

organizational changes internally. HR Change Agent organizes training opportunities so
employees can learn the new skills necessary for changing business goals or job roles, or
changes job descriptions to reflect those altered roles. Essentially, the change agent helps
adapt the organization for its next stage of growth or evolution.
3. Administration Expert: This administration role within HR is responsible for numerous

different types of tasks. On one end of the spectrum, the administration expert follows
changes in legislation, regulation, occupational health and safety rules, and other types of
labor or trade law and helps the organization adapt in order to stay compliant with those
laws. On the other end of the spectrum, the administration expert is responsible for
organizing personal employee information and making sure that it is up to date. This person
uses an HRIS (Human Resources Information System) to monitor, update, and secure that
information. In other words, the administration expert is the closest thing to a true ‘document
management’ specialist within Ulrich’s HR Model. By using an HRIS, the administration expert
is crucial in helping an organization adopt modern, paperless policies for storing information,
securing personnel files, sharing files within the organization, and more.
4. Employee Advocate/Employee Champion: At all times, any Human Resources department is

responsible for staying aware of employee interests and making sure they are protected. The
employee advocate (also known as the ‘employee champion’) is the role in charge of gauging
employee morale and satisfaction and using that information to create a positive company
where people will want to work. This person uses surveys to measure employee satisfaction,
spot shortcomings in company culture, and ensure that managers are fair and equitable to all
employees. The employee advocate also leads initiatives to improve morale and employee
experience, helps the change agent with offering training and professional development
opportunities, and ensures that existing employees have opportunities to apply for new jobs
or promotions within the organization.

HR COE HR BP
Rewards & Business
Recognition Impact
Talent Employee
Management Relations
Learning & Workforce

Development Planning
Talent Performance
Acquisition Management
Organization Employee
Development Engagement
HR IT &
Change Expert
Operations
HR Org Culture
Compliance &
Admin
Fig: Roles and Responsibilities of HR Centre of Excellence and HR Business Partners

Note: This is a tentative list and would slightly vary from book to book
Learning & Development

When an organisation gets the best out of its people and combines their skills and capabilities,
it boosts its performance. It also helps those individuals discover their own strengths and
potential. It adds up to a rewarding role for learning and talent development professionals.
The role of a learning and development (L&D) specialist is to help organisations execute their
business strategy by aligning learning, training and development if its people with business
priorities. L&D roles will depend on the type and size organisation but could include activities
as varied delivering firearms training for police officers or development programmes for fund
managers. One might support coaching and mentoring programmes for your line managers
of develop training strategy for the whole business. Learning and Development function in an

organization identifies the skill gap in an organization and devises strategies to narrow the
skill gap.
Rewards and Recognition
The reward function plays a critical role in any organization that wants to create and sustain
a high-performance culture has to ensure that its people’s skills, behaviors, values, attitudes
and contribution are rewarded and recognized.
Performance and reward professionals help establish salary levels and allowances and
manage pay relativities. They also create incentive and recognition schemes or evaluating
benefits.
An HR person in this role needs to be numerate and aware of the legal and regulatory
landscape. A company’s organization strategy can also be linked with rewards.
Employee Engagement
Employee engagement is a distinct discipline in larger organizations. It touches on related
areas like employer branding and internal communication. It also connects with employee
relations. It’s about building connections between employees and their organization. How do
you get them to feel a sense of loyalty and pride in their work, to go the extra mile, to become
ambassadors for the business?
An HR in this role is usually expected to develop surveys, run workshops and focus group
discussions (FGD’s) to gauge the mood of the employees. A business can only be successful
on a sustainable basis if its people understand and buy into its objectives.
Organization Development
Organizations today are in a constant state of reinvention. They need to remain agile to cope
with the challenges of a fluid, fast-paced external environment. As an organization
development (OD) specialist, one needs to play a key role in managing the process of change.
An HR in this role could be asked to deliver programs that impact on the organization’s culture
or develop its people. They may involve re-organization and the creation of more effective
and customer-focused processes.
One needs to paint a picture not just of what successful change will look like, but also of the
risks and challenges that lie ahead. Organization development practitioners work in a planned
and systematic way – diagnosing issues using relevant data. They take into account the whole
organization and look at how involving people can achieve sustained business performance.

Employee Relations
Employee relations (ER) professionals maintain and develop effective working relationships
across the organization. They support managers by motivating and engaging the workforce.
Employees perform better when they understand the goals of the organization and they’ll be
more motivated to deliver if there’s an opportunity to feed their views upwards.
As an ER professional one is expected to contribute to building a culture of trust, a pre-

requisite for any healthy organization. One needs to speak the language of the business and
understand how people management can drive performance. Strong values are also
important. It may also lead to managing the organization’s relationship with its trade unions
and workplace conflict. Whether one dealing with individuals or their representatives a
genuine commitment to diversity, fairness and equal opportunity will facilitate dialogue.
Talent Management
As a recruitment and talent planning professional, the role will be to help fulfil the short and
long-term requirements of your organization’s strategy in a dynamic labor market.
One may have to plan for changing demographics, the supply and demand for labor, staff
turnover and scarce skills. An HR in this role will also have to be responsible for identifying
and attracting the key people who create competitive advantage for the organization. It may
range from actively recruiting them; alternatively, to developing networks that make it easier
to attract talented individuals cost-effectively over the longer term. One can also play an
important role in identifying talent across the organization and integrating that with
succession planning and performance management.
HR Operations
This kind of HR role aims to decrease HR’s dependency on IT and makes it self-sufficient. An
HR person in HR operations role is expected to carry out projects which may involve end to
end implementation of a Human Capital Management (HCM) ERP software for the
organization. HR Operations coordinates, collaborates, and supports organization affairs

HOT TOPICS
Government announces 30 new Smart Cities

Union Minister for Urban Development and Housing & Urban Poverty Alleviation, M.
Venkaiah Naidu has announced a new batch of 30 smart cities under Smart City
Mission, which was launched on June 25, 2015. With the addition of these 30 smart cities, the
total cities picked up under the Smart City Mission has reached 90. The government has
selected 30 cities against the available 40 smart city slots to ensure feasible and workable
plans that fulfill the aspirations of the citizens.
Verizon Completes Yahoo Acquisition
Telecom giant Verizon has acquired Yahoo’s core business for $4.48bn (£3.51m), thus ending
Yahoo’s two-decade long run as an independent company. Verizon is the No.1 wireless
operator in the US.
GST Council Announces GST Rates

Out of 1211 items, 81% of the items will attract tax of 18% or less. Only the remaining 19% of
items will attract a highest rate of 28% Household items like Sugar, Tea, Coffee and edible oil
will attract 5% levy. Cereals and milk will be exempted from the tax. Manufactured goods will
attract 18% levy. Luxury cars will attract 28% GST in addition to a cess of 15%. Small petrol
cars will attract 28% GST plus a 1% cess, and diesel cars will be taxed at 28% plus 3% cess.
Capital goods, a key asset for the manufacturing sector, will be taxed at 28%. Aerated drinks
will fall under the 28% tax bracket.
Vodafone, Idea merge to create India’s largest, world’s 2nd largest telecom
company
Kumar Mangalam Birla-led telecommunications major Idea Cellular has agreed to merge with
the Vodafone India, Indian unit of the UK headquartered Vodafone Plc. The blockbuster
merger will create world’s second largest (after China Mobile) and India’s largest telecom
company by overtaking Bharti Airtel Ltd.
PARIS Climate Agreement

 It is an agreement within the United Nations Framework convention on Climate
Change (UNFCCC) that deals with greenhouse gas emissions mitigation, adaptation
and finance starting in one year
 The agreement sets out a global action plan to put the world on track to avoid
dangerous climate change by limiting global warming to well below 2°C.

Effect of NPA on Banks:
NPA in Indian context are the advances in which interest has not been appropriated by the
party for more than 90 days. The account once classified as NPA reverses all the interest
overdue on the account i.e interest income on such accounts become zero. Further the
provisioning of such accounts increases i.e the reserve which bank has to keep to avoid Asset
Liability mismatch due to this account.
Further if account remains nonstandard after 1 year of becoming NPA then it moves into
doubtful category where the provision amount is 40% of the amount due on date of NPA.
After another year account has to be declared as loss asset with 100% provisioning. Once the
account has 100% provision it may be written off from the books of the bank i.e bank will
book the loss.In case of famous Kingfisher airlines ICICI and SBI had to make close to 3000 cr
of provisions from their profits and ultimately write it off from the books.
Narendra Modi government seems to have finally made up its mind on

privatizing Air India.
The Modi government will need to explore all the options as the status quo cannot continue
for long. The government has fiscal constraints and needs to spend more in important areas
such as health and education. There is absolutely no rationale why it should be running a
company like Air India.Privatization is normally seen as a politically difficult decision, but for
a government which had the political capital to withdraw 86% of the currency by value from
circulation, selling inefficient loss-making public sector companies should be reasonably easy.
Patanjali’s rise in FMCG sector
It is a business miracle of sorts. A consumer goods company that started in 1997 and was
coasting along for almost ten years till 2007, has suddenly emerged as a leading player in the
Indian FMCG space. From shampoo, biscuits, ghee and noodles, and now jeans – no other
Indian company has a product portfolio this wide. Pricing, branding and Baba Ramdev are the
ingredients that have helped the company reach these levels.
Impact of Automation in IT industry

Most large IT services companies have been investing in automation of processes in their
traditional businesses like business process outsourcing (BPO) and application and
infrastructure management, which means fewer engineers will be required at the lower
end of the pyramid. And with US President Donald Trump insisting that IT service
providers to hire more US citizens at home, the need to send Indian experts abroad may
reduce.

PROMINENT HR PERSONALITIES
INDIA
Ajoyendra Mukherjee, Vice President and Head, Global HR,1 TCS:

Nandita Gurjar, Senior Vice President and Group Head, HR, Infosys:
Saurabh Govil, Senior VP, HR Technologies, Wipro:2
Rajan Dutta, President-Corporate HR, Corporate HR, Reliance
Communications:
Joji Sekhon Gill Microsoft’s Senior Human Resource Director:
D.K.Srivastava, Senior Vice President of Corporate Human Resources, HCL
Technologies:
Manoj Biswas, India Head of Human Resources, Accenture:
M.S. Krishnamoorthy, VP(Human Resources), L &T:
Dhruv Desai, Sr. Vice President and Head HR, Angel Broking Pvt. Ltd.
GLOBAL
Felicia Fields – Group VP HR Ford Motor Company
Hollie Delaney – Director of HR at Zappos!
Henry “Hank” Jackson – President and CEO of SHRM
Dave Ulrich – Global HR Leader
Dianne Mills – Global Head of HR at Paypal
Alice Harmon – VP of HR and Administration Evernote
Kris Dunn – CHRO at Kinetix. Founder of HR Capitalist & Fistful of Talent
Kalen Holmes – Executive VP Partner Resources (HR) Starbucks
Laszlo Bock – SVP, People Operations Google
Steve Browne – Executive Director of HR at LaRosa’s, Inc.

BUZZWORDS
1. Corporate Synergy: Refers to a financial benefit that a corporation expects to realize when
it merges with or acquires another corporation. Corporate synergy occurs
when corporations interact congruently.
2. Corporate Governance: Corporate governance is the system of rules, practices and
processes by which a company is directed and controlled.
3. Low-Hanging Fruit: The most easily achieved of a set of tasks, measures, goals, etc
4. White Elephant: A possession that is useless or troublesome, especially one that is
expensive to maintain or difficult to dispose of.
5. Purple Squirrel: It is a term used by employment recruiters to describe a job candidate
with precisely the right education, set of experience, and range of qualifications that
perfectly fits a job's requirements.
6. Swim lane: A swim lane (or swimlane diagram) is a visual element used in process flow
diagrams, or flow charts that visually distinguishes job sharing and responsibilities for sub-
processes of a business process. Swim lanes may be arranged either horizontally or
vertically.
7. Move the Needle: Make a significant difference in something.
8. Open the Kimono: To reveal what is being planned or to share important information
freely. Revealing the inner workings of a project or company to an outside party.
9. Bleeding Edge: The very forefront of technological development
10. Burning Platform: It is a business lexicon that emphasizes immediate and radical change
due to dire circumstances.
11. Ladder Up: A means of rising, as to eminence: the ladder of success.
12. Drink the Kool-Aid: Demonstrate unquestioning obedience or loyalty to someone or
something.
13. Wantrepreneur: Someone who thinks about starting a business all the time.
14. Acqui-hire: An act or instance of buying out a company primarily for the skills and expertise
of its staff, rather than for the products or services it supplies
15. Presstitute: Presstitute means who give biased and predetermined views in favour of the
government and corporations, thus neglecting their fundamental duty of reporting news
impartially. It is a portmanteau of press and prostitute.
16. Dynamic resilience: The ability to bounce back, stronger than ever, after having been
knocked for six, is what is required now, both by the global economy, by governments and
by companies.
17. In the weeds: To be in difficulty; be struggling
18. Helicopter view: A general survey of something; an overview, rather than a detailed one.
19. Circle back: Connecting with folks on a business issue and letting things happen, then
going back to them after a few days or after things evolve.
20. Growth hacking: It is a process of rapid experimentation across marketing channels and
product development to identify the most effective, efficient ways to grow a business
21. Newsjacking: It is the practice of aligning a brand with a current event in an attempt to
generate media attention and boost the brand's exposure.

22. Glory vulture: A person attaches themselves to high profile task or project in order to enhance
their own career.
23. Marketroid: Used as a generally derisive term to describe a person who is so concerned
with spewing marketing dribble to sell a product, that it comes automatically to them.
24. Pre-revenue: The bullshit an entrepreneur spews to investors to convince them of a high
valuation since the seed money will allow the start up to grow immeasurably.
25. Beer o’clock: An appropriate time of day for starting to drink beer
26. One throat to choke: One throat to choke is an expression used in business to describe the
advantage of purchasing goods or integrated services from a single vendor.
27. Run it up the flagpole: Test the popularity of a new idea or proposal

KNOW YOUR PAYSLIP
 CTC is cost to company. Basic Salary is a component of the Total Fixed Pay. CTC =
Total Fixed Pay + Total Variable Pay
 All the allowances in your pay slip are calculated on the Basic Salary. (Dearness
Allowance to Gratuity) It is the employer’s discretion to decide on the type of
allowances, and this differs from organization to organization.
 Residual Pay is also known as Special Personal Allowance. It is calculated by using the
formula:
o Residual/Special Allowance = Total Fixed Pay- sum of (Basic + All Allowances in
the table till gratuity in the same order, whichever is applicable)
 Taxable Salary = Basic + Residual + Variable – (Employee`s contribution to PF +
Professional Tax)
Components Contribution
• Number of components calculated
based on this amount.
Basic Salary • Different from guaranteed/ fixed pay
• Fully Taxable
• Usually 30-40% of your CTC
• Dearness Allowance (DA) is a cost of

living adjustment allowances paid to
Dearness Allowance
Government employees, Public sector
employees (PSU)
HRA is exempt from tax on the following three
cases:
 HRA received from the employer
House Rent Allowance
 Actual pent paid less 10% of Basic Pay
 40% of Basic Salary (50% in case of
Mumbai, Chennai, Kolkata, Delhi)
Children’s Educational Allowance 100/child/per month; up to 2 children
300/child/per month; up to 2 children

Children’s Hostel Allowance
 Amount up to 1600/month is exempt
from Tax Need to travel by Public
Transport/Fuel Allowance
transportation
Travel via private vehicles; fuel bills

Fuel and Convenience Allowance
On leave and travelling for recreational
purposes, LTA can be reimbursed only for
travelling fare(to and fro from destination);
Leave Travel Allowance
limit not defined by Govt.; usually Employer
gives 2-3 months of basic salary; Can claim 2
times in 4 years; Can claim only once per year

Uniform Allowance Limit not specified
Not an allowance; Rs 15000 p.a. can be
reimbursed only by submitting bills for
Medical Reimbursement
dependents and self
50/meal * 2 meals per day * 26 days a month *

Meal Vouchers 12 months
Section 80D, Deduction; Govt limits- 30,000 for

Medical Insurance
Senior citizens and 25000 for us
Employee Contribution: 12% of your Basic

Provident Fund Salary ; not taxable
4.81% of Basic; If we leave before 5 years-

Gratuity amount given as ex-gratia subject to taxes
Superannuation Amount Discontinued
Residual pay
20% of Fixed pay; paid for performance (subject

to change, can go over 100% of Fixed pay too in
Variable pay
some organizations, depends on organization
strategy)
Total Fixed Pay- sum of (Basic + All Allowances

Total Pay (Fixed + Variable) in the table till gratuity in the same order,
whichever is applicable)
Basic + Residual + Variable- [Employee`s

Taxable Salary
contribution to PF+ Professional Tax]
INR 200 for 11 months and INR 300 for one

Professional Tax
month per year
Income Tax
Tax Slabs as decided by Government every year
Education Cess(Govt)
Tax on Tax (3% surcharge)
Total income tax Total Income tax is inclusive of the Education
Cess Surcharge on the income tax
Final Taxable Income – Total Income Tax as per
In hand Salary
the slab rates

 The income tax slabs are given as below, the tax rates are subject to change:
Income Slabs (Your Taxable Income) Tax Rate (Subject to Changes)
Up to INR 250000 NIL
10% of the amount by which income exceeds

Above INR 2.5L up to INR 5L
INR 2.5L
Above INR 5L up to INR 10L INR 25000+ 20% of income exceeding INR 5L
Above INR 10L INR 125000+ 30% of income exceeding INR 10L

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HRuday Summer Internship 2017-2019 Page |1

Students are advised to go through the entire dossier and be aware of

HRuday Summer Internship 2017-2019 Page |2

2. Human Resource Management 16

HRuday Summer Internship 2017-2019 Page |3

Leadership Motivation Personality Perception

Early Trait Maslow’s Big 5

Behaviour ERG Theory MBTI

Contingency Herzberg’s Adams

HRuday Summer Internship 2017-2019 Page |4

Early Trait Theories

 Identified leadership quality based on physical attributes (height, appearance, weight,

 While trait and behaviour theories do help us understand leadership, an important

o Leader-member relations: degree of confidence and trust in the leader

o Task structure: degree of structure in the jobs

o Position power: leader’s ability to hire, fire, and rewards

Fiedler’s Model has many applications in the organizational world:

HRuday Summer Internship 2017-2019 Page |5

Hersey and Blanchard’s Situational Leadership Theory

 A model that focuses on follower “readiness”

HRuday Summer Internship 2017-2019 Page |6

 Four types of leaders:

HRuday Summer Internship 2017-2019 Page |7

Vroom and Yetton’s Leader-Participation Model

Leader-Member Exchange (LMX) Theory

HRuday Summer Internship 2017-2019 Page |8

Maslow’s Hierarchy of Needs

HRuday Summer Internship 2017-2019 Page |9

THEORY X and THEORY Y

 Theory X- A set of assumptions of how to manage individuals who are motivated by

HRuday Summer Internship 2017-2019 P a g e | 10

 Motivators (e.g. challenging work, recognition, responsibility) that give positive

McClelland’s Need Theory

HRuday Summer Internship 2017-2019 P a g e | 11

Apply McClelland's theory to cultivate self-motivated achievement

Consider David McClelland motivation theory to refocus towards non-monetary incentives

Create a fulfilling work setting using McClelland's achievement theory

HRuday Summer Internship 2017-2019 P a g e | 12

ADAM’S THEORY OF INEQUITY

 Inequity is a situation in which a person perceives he or she is receiving less than he

HRuday Summer Internship 2017-2019 P a g e | 13

 The Expectancy Theory of Motivation explains the behavioural process of why

HRuday Summer Internship 2017-2019 P a g e | 14

The Big Five Personality Model

 Extraversion captures one’s comfort level with relationships.

Myers-Briggs Type Indicator

HRuday Summer Internship 2017-2019 P a g e | 15

Recruitment and Training and

- Job Analysis - ADDIE Model

- Sourcing - Kirkpatrick Model

HRuday Summer Internship 2017-2019 P a g e | 16

External Sources Internal Sources

HRuday Summer Internship 2017-2019 P a g e | 17

2. Training and Development

Training and development is a function of human resource management concerned with

Methods of training include technology based learning, simulators, on-the-job training,

HRuday Summer Internship 2017-2019 P a g e | 18

The four levels of Kirkpatrick's evaluation model essentially measure:

HRuday Summer Internship 2017-2019 P a g e | 19

The continuous process of identifying, measuring, and developing the performance of

Performance appraisal process

Performance Appraisal implies a rational assessment of the performance of an individual,

HRuday Summer Internship 2017-2019 P a g e | 20

The process of performance appraisal: