Future Institute of Engineering

and Management, Kolkata

Sonarpur Station Road,
Kolkata – 700 150

HUMAN RESOURCE AUDIT

Student Name : AMRITA DAS

College Roll No. : 08/MBA/20

University Registration No.: 081480710003

University Roll No. : 08148009003

Project carried at : 6A, Acharya Jagadish Chandra Bose Road

Under Guidance of : Premankur Bhattacharjee,

Deputy General Manager
(Human Resource)

: Monodip Roy Chowdhury

(Faculty, Future Institute of Engineering &
Management)

: Monalisa Dey
(Faculty, Future Institute of Engineering &
Management)

1
 ACKNOWLEDGEMENT

Acknowledgement with gratitude my indebtedness to the various learned

personalities under whose patronage and immense help this study paper has been
prepared and compiled.

a) Mrs. Monalisa Dey, Faculty of Future Institute of Engineering and

Management.

b) Mr. Monodip Roy Chowdhury, Faculty of Future Institute of Engineering

and Management.

Special Thanks to:-

c) Mr. Premankur Bhattacherjee Deputy General Manager (Human

Resource) of peerless General Finance and Investment Company Limited.

Signature : _____________________

Date : _________________________

Place : ________________________

2
 Table of Contents
Personnel/HR Audit ................................................................................................................................ 6
Objectives of Personnel/HR Audit ......................................................................................................... 7
RESEARCH METHODOLOGY .......................................................................................................... 8
Scope Of The Study .............................................................................................................................. 9
Organization of the report ..................................................................................................................... 10
Company Vision and Mission .............................................................................................................. 11
Unique Distinctions .............................................................................................................................. 11
TEAM PEERLESS ............................................................................................................................... 12
PGFI Vision .......................................................................................................................................... 13
PGFI Mission ........................................................................................................................................ 13
Unique Distinctions .............................................................................................................................. 14
Company Subdivisions ......................................................................................................................... 15
Peerless Hospitals ............................................................................................................................. 16
Peerless Securities and Insurance ..................................................................................................... 18
Hotels ................................................................................................................................................ 19
Travel ................................................................................................................................................ 20
in the individuals right to grow and prosper within a hospitable living environment and
commercially viable business space. We offer space, which is Housing ......................................... 20
Old Age Homes ................................................................................................................................ 21
Subunits: Functions And Divisions ..................................................................................................... 23
Personnel/Human Resource Management - Func ................................................................................ 25
Managerial Functions ........................................................................................................................... 25
Operative Functions .............................................................................................................................. 26
Integration function: ............................................................................................................................. 28
Personnel Policies, Procedures and Programmes ................................................................................. 31
Definition of Personnel Policy.......................................................................................................... 31
Personnel/HR Audit .............................................................................................................................. 32
Objectives of Personnel/HR Audit ....................................................................................................... 33
Types of Personnel Records ............................................................................................................. 33
Need for Personnel Audit ................................................................................................................. 33
Benefits ............................................................................................................................................. 34
Scope of Personnel Audit ................................................................................................................. 34
| Personnel Audit - Areas and Levels ...................................................................................................... 34
HR Audit Process ................................................................................................................................. 36
Effectiveness Ratios ........................................................................................................................ 37
Accident Ratios ................................................................................................................................ 37
Organisational Labour Relations Ratios ......................................................................................... 37
Turnover and Absenteeism Ratios .................................................................................................. 37
Employment Ratios .......................................................................................................................... 37
Methodology of HRD Audit ............................................................................................................. 38
Preparation for the Audit ...................................................................................................................... 40
Check-list of Documents to be made available by the HRD department for Audit ........................ 41
BALANCED SCORECARD .................................................................................................................... 42
Research Study and Analysis ................................................................................................................ 51

3
Documents Studied ............................................................................................................................... 52
Bio-Data ............................................................................................................................................ 52
Appointment Letter ........................................................................................................................... 52
Joining Letter .................................................................................................................................... 52
Confirmation Letter .......................................................................................................................... 52
Promotion Letter ............................................................................................................................... 53
Pay fixation Letter ............................................................................................................................ 53
Processes and Systems Studied ............................................................................................................ 53
Leave Systems .................................................................................................................................. 53
Performance Appraisal ..................................................................................................................... 54
Performance Appraisal at Kaizen Leisure and Holidays ...................................................................... 58
Importance of Performance Appraisals ............................................................................................ 64
Research Methodology ......................................................................................................................... 65
Primary Research .............................................................................................................................. 65
Secondary Research .......................................................................................................................... 65
Observation ........................................................................................................................................... 65
RECOMMENDATION ........................................................................................................................ 67
HUMAN RESOURCE REPORT ......................................................................................................... 73

4
Executive Summary

The project covered in the report was focussed on a Human Resource Audit at
Kaizen Leisure and Holidays, the travelling agency of Peerless. The project aimed
at studying the various Human Resource processes and systems in the
organizations and making suggestions to improve the same. The project primarily
focussed on three aspects of the company: its document gathering and storage
system, the leave system and the performance appraisal system.
The study of the documentation process revealed that the company was storing
several unnecessary documents related to employee records and omitting some
very essential ones. A map was created to identify which documents are necessary
and the cost of storage was weighed against the importance of information. Based
on this suggestions were made regarding the improvements to be made in the
documentation process.
The leave system study focussed on comparing the leave entitlements across
various hierarchies in the organization and identifies its potential as an employee
motivator. Discrepancies across hierarchies wherever identified were reported
and suggestions were made to streamline the leave system.
The study of the performance appraisal system was more of a mark-to-market
study where the processes of the company were compared to that of the best in the
industry. The management were made aware of the various other performances
appraisal systems in other organizations and their relative benefits. Suggestions
were made on upgrade of the current system and the benefit of the same was
clearly outlined.
The entire project touched upon most of the HR functions in the company.
Suggestions given focussed on improving each function separately and also the
entire organization as a whole. It is hoped that the suggestions when implemented
would improve the organizations internal systems and bring greater engagement
between the company and its employees.

5
Introduction
Personnel/HR Audit

Personnel records and reports provide information regarding the utilization of

human resources in an objective way. However, in most cases this is not sufficient.
A critical evaluation of manpower programmes might be required to find out the
areas where improvements are needed and to set things in order. In place of
informal impressions gathered and summarised through records and reports, a
systematic and analytical search is made to find out the effectiveness of personnel
management. According to Seybold, personnel audit refers to an examination and
evaluation of policies, procedures and practices to determine the effectiveness of
personnel management. Personnel audit covers basically three things:
1. Measurement and evaluation of personnel programmes, policies and
practices;
2. Identification of gap between objectives and results; and
3. Determination of what shoulder what should not be done in future.

6
Objectives of Personnel/HR Audit

"The basic objective of personnel audit is to know how the various units are
functioning and how they have been able to meet the policies and guidelines
which were agreed upon; and to assist the rest of the organisation by identifying
the gaps between objectives and results, for the end-product of an evaluation
should be to formulate plans for corrections of adjustments" (Gray).
The objectives of personnel audit are:
a. To review the organisational system, human resources subsystem in order to
find out the efficiency of the organisation in attracting and retaining human
resources.
b. To find out the effectiveness of various personnel policies and practices.
c. To know how various units are functioning and how they have been able to
implement the personnel policies, and
d. To review the personnel system in comparison with organisations and
modify them to meat challenges of personnel management.

7
RESEARCH METHODOLOGY

1) Primary Research – Primary research has been taken place by interviwing

Atish Adhikari of Kaizen in consultation with Premankur Bhattacherjee

deputy general manager (human resource) Peerless General Finance And

Investment Company

2) Secondary Research- Secondary Research has been carried on by

consulting various books in college library and also consulting with the

professor in our college.

8
Scope Of The Study

Entire week, the audit has been conducted at Kaizen Leisure And Holidays

Pvt. Ltd. 6A, Acharya Jagadish Chandra Bose Road , Kolkata-700017

And once in a week the report is shown to Premankur Bhattacherjee (Deputy

General Manager) of The Peerlees General & Investment Company Limited

9
Organization of the report

Chapter 1 describes in brief about the topic (audit), the place where the work

of audit has been taken place and also about primary research and secondary

research. Chapter 2 describes about the organizational profile. Chapter 3

describes about what Human Resource audit stands for and an elaborate

description of the entire topic. Chapter 5 provides certain recommendation.

10
Peerless Group

Incorporated in 1932 as "The Peerless Insurance Co Ltd", a leading indigenous

insurance company, the company is now known as "The Peerless General Finance &
Investment Co Ltd".Today Peerless is the market leader in the area of savings &
investments and has emerged as India's largest Registered Residuary Non-banking
Company (RNBC), with core competence of mobilizing savings from the grass root
level.
It's pan-Indian presence with countrywide network and constant endeavour to offer
need-based products and superior customer services have enabled Peerless to build an
excellent brand image.

Company Vision and Mission

The vision of PGFI is to emerge as the country‘s most trusted doorstep financial
services provider in the private sector with the lowest servicing cost to the customers.
We will accomplish our vision through our commitment to strategic growth, quality
service and creation of self employment opportunities for more people.
To be a premier financial services company helping people build their security
by providing them with innovative financial products and quality investment solutions
through dedicated service.
 To create livelihood solutions across the length and breadth of the country.
 To fulfil its role as a responsible corporate citizen.
 To provide a supportive and rewarding environment for employees

Unique Distinctions

 The country's premier financial service provider in the private sector with over77
years of experience.
 Professionally managed by a host of eminent corporate leaders on the Board
with Mr. D Basu as the Chairman and Mr. S K Roy as the Managing Director.
 A wide variety of tailor-made, co-branded, Insurance-linked financial products.
 Technology-based, prompt and personalized service, right at the Customers'
doorsteps.
 Helping people build up regular savings habit and offering assured return with
total security.
11
  Set an immaculately spotless record of Maturity Payment - Over Rs.15,800
Crore already disbursed.
 Safe and Riskless - Over 100% in Secured approved investments.
 Tapping the untapped areas - mopping up huge un-surfaced resources and
injecting the same into the mainstream of the country's economy.
 Generating excellent, enormous Self-employment opportunities through Smart
Rojgar Yojna, which is the source of livelihood for teeming millions across the
country

TEAM PEERLESS

Team peerless Incorporated in 1932 as "The Peerless Insurance Co Ltd", a leading

indigenous insurance company, the company is now known as "The Peerless
General Finance & Investment Co Ltd"

Today Peerless is the market leader in the area of savings & investments and has
emerged as India's largest Registered Residuary Non-banking Company (RNBC),
with core competence of mobilizing savings from the grass root level.

It's pan-Indian presence with countrywide network and constant endeavor to offer need-
based products and superior customer services have enabled Peerless to build an
excellent brand image.

12
PGFI Vision

The vision of PGFI is to emerge as the country‘s most trusted doorstep financial
services provider in the private sector with the lowest servicing cost to the
customers. We will accomplish our vision through our commitment to strategic
growth, quality service and creation of self employment opportunities for more
people.

PGFI Mission

To be a premier financial services company helping people build their security

by providing them with innovative financial products and quality investment
solutions through dedicated service.

To create livlihood solutions across the length and breadth of the country.

To fulfill its role as a responsible corporate citizen.

To provide a supportive and rewarding environment for employees.

13
Unique Distinctions

The country's premier financial service provider in the private sector with
over77 years of experience.

Professionally managed by a host of eminent corporate leaders on the

Board with Mr. D Basu as the Chairman and Mr. S K Roy as the
Managing Director.

A wide variety of tailor-made, co-branded, Insurance-linked financial

products.

Technology-based, prompt and personalized service, right at the

Customers' doorsteps.

Helping people build up regular savings habit and offering assured return
with total security.

Set an immaculately spotless record of Maturity Payment - Over

Rs.15,800 Crore already disbursed.

Safe and Riskless - Over 100% in Secured approved investments.

Tapping the untapped areas - mopping up huge un-surfaced resources and

injecting the same into the mainstream of the country's economy.

14
 Generating excellent, enormous Self-employment opportunities through
Smart Rojgar Yojna, which is the source of livelihood for teeming
millions across the country.

Company Subdivisions

15
Peerless Hospitals

Peerless Hospital & B.K.Roy Research Centre is a

multidisciplinary super-speciality hospital. It is located within the
serene and unpolluted natural surroundings, near the southern
periphery of Calcutta. It is a referral center of Eastern India and
nearby countries. It has already become a trusted name in reliable,
dependable and advanced health care system, for nearly twelve years.

The hospital has most of the major clinical and medical specialities.
The departments are fully equipped with the latest, advanced and
state-of the art diagnostic and therapeutic gadgets. The indoor
department has 300 beds in the form of wards and cabins. Fifty One
beds are equipped for providing intensive care; these are ICCU,
General ITU, Cardiothoracic ITU and Neonatal ICU-level III.
Thirteen beds are allotted as HDU beds in addition; in the Dept of
Gynaeology & Obstetrics, Cardio-thoracic surgery and Neurology.
Consultant and Resident Doctors are available round the clock for
utmost personalized attention. The cost is affordable.

16
 The attractive multistoried
building had the fingerprints
of French Architecture. It is
organised in different
blocks. All the diagnostic
investigations are carried out
under the same roof. A few
to name are fourth
generation CT scanner,
Colour Doppler and
Echocardiography,
Ultramodern Cardiac
catherisation laboratory,
fully automated analysers
for Haematochemical and
Biochemical studies,
Immunoassay facilities.

Interdepartmental communication is maintained by Intercoms Dual

host mainframe computer with 40 terminals connected by Ethernet
server (LAN).

Peerless Hospital aims to provide highest possible quality of compassionate

and cost-effective care and treatment, to each and every patient, producing
high levels of patient satisfaction. The hospital has facilities to train
Medical and Paramedical staff. The hospital is committed to enhancing the
quality of life through improved healthcare, the preparation of those
professionals who will serve the health needs of others and the discovery of
knowledge that will benefit us all.

Peerless‘s foray into health-care is synergic with its corporate culture : rendering
myriad forms of service to the society, and enriching the quality of life. Attuned to this
corporate philosophy, Peerless Hospital & Research Centre Limited opened up a whole
new vista of the latest and state-of-the-art, health-care facilities in this part of the
subcontinent.
Its 300-bed multidisciplinary, super-specialty hospital, Peerless Hospital & B.K. Roy
Research Centre is a marvel in health-care, with excellent diagnostic and treatment
facilities in cardiology, neurology, orthopaedics, ophthalmology, gastroenteritis and
general surgery etc.
The growth in the field of operative cases and cath lab procedures was significant.
Departments such as Orthopaedics, Nephrology, General Medicine and
17
Gastroenterology have also shown good results particularly Dialysis Department,
which recorded robust growth growth in 2005-‘06.
A batch of new capital equipments of high-end technology has been introduced in
Pathology, Radiology and Imaging Departments to upgrade the quality of investigation
and testing as well as to broaden the spectrum of the available diagnostic range.
 The Peerless Hospital has been approved by the Royal College of Physicians of
Ireland, India Chapter, as an examination centre of MRCP
 It‘s a premier Eastern Indian institute in the area of joint replacement surgery
 Commissioned across nine acres, this ISO 9001:2000 certified hospital delivers
comprehensive healthcare of an international standard at an affordable cost.

Several courses have been introduced in the hospital in recent years.

 2006- Master of Hospital Administration Duration-2 years
 2006- Bachelor's degree in Physiotherapy Duration- 4 1/2years
 2006- BSc in Nursing Duration- 2 years
 2002- General Nursing and Midwife Duration- 3 1/2 years
 A one year course, Post Graduate Diploma in Front Office Management is
scheduled to commence from April 2007.

Peerless Securities and Insurance

Peerless Securities Ltd. is one of India‘s premier Financial Services Company. It

provides a wide range of services - Share & Stock Broking, Trade Settlements and
Depository Services. A corporate member of the National Stock Exchange of India
Ltd. and the Kolkata Stock Exchange Association Ltd and an agent of UTI, RBI Relief
Bonds and Mutual Fund. It enjoys a high level of trust; a position further enhanced
with the Company joining the National Securities Deposit Ltd. as a Depository
Participant. Looking at the competitive market, the Company has been adopting a
strategy of expansion to enhance profitability.
 A reliable organisation for stock and security broking, marketing of financial
products, investment advisory and depository services
 Corporate Member of National Stock Exchange and Calcutta Stock Exchange,
member of wholesale debt market of NSE
 Empanelled agent of leading Mutual Funds, RBI & UTI
 Depository participant with NSDL
 Marketing Public Privately Placed Issues of PSUs, DFIs and Corporate

18
PGFI recently entered into an agreement with Max New York Life Insurance Company
Ltd. (MNYL) - a new generation private sector conglomerate in life insurance business
in India. As per the agreement, PDL has been taken over the corporate agency of
MNYL.
In the first phase, PDL has decided to conduct business through its own SPs in the East
and the North- Eastern regions and subsequently, in the Northern part of the country
and other places, using the infrastructure and network of its parent company, PGFI.
Necessary training on the products and life insurance business has been imparted to
PDL executives at the branch level.
Peerless distributing the following ITGI Policies
 Trade Suvidha gives complete protection to business against a wide range of
risks like fire and other perils like riots, strike, earthquake and other natural
disasters. Burglary and other perils are covered as well.
 Home Suvidha gives complete protection to customer home against a wide range
of risks and perils like riots, strike, earthquake and other natural disasters.
Burglary and other perils are covered as well.
 Individual Medishield is a complete protection plan for the medical treatment of
the entire family while at the same time ensuring that in case of any unfortunate
accident, customer and their family get hassle free medical care.
 Motor insurance provides coverage for both private car below 5 years and two
wheeler below 5 years. The first one covers loss of or damage to privately
owned vehicle against the risk of accident, fire, theft, floods, earthquake, riot,
strike etc. The policy also gives coverage for liability arising out of death, injury
to third party and/or third property damage.

The company objective has been to provide our certificate holders a safe platform for
depositing their savings and to ensure earning reasonable returns.
Today, over 100% of the corpus of depositor's funds lie invested in Government
Securities and other Approved Investments. The Company's Investments have been on
a path of steady & consistent growth over the years.

Hotels
The Peerless Group of Hotels is a family of Hotels and Resorts spread across Kolkata,
Durgapur, Port Blair (Andaman) & Mukutmonipur
The Peerless Inn offers discerning travellers a world of convenience in the best
traditions of Bengali hospitality. One of the finest Kolkata hotels, the Peerless Inn has
122 rooms and suites and is located in Chowringhee in the heart of Kolkata, and close
to both shopping and business areas.

19
It‘s one of the finest hotels in the steel city, and is an excellent option for business
visitors as well as tourists. Located in the centre of the city, the Durgapur hotel has 61
rooms and suites and is close to the railway station and the highway.

Travel
The word Kaizen means ―change for the better‖ in Japanese. The Company believes
that the new logo denotes an illustration of a man in the shape of the alphabet ―K‖, who
is in a joyous mood. He is forecasting a memorable holiday with Kaizen and is
confident of achieving it. The illustration is in 3 colours- green, black & yellow. The
colour ―black‖ portrays the threshold of development which turns into ―green
―symbolizing growth. The ―green‖ arrow points to the golden ―sun‖, also representing
the head of a man, aiming to reach high. Thus the logo and the colours together
complement the motto - CHANGING FOR THE BETTER.

Kaizen Leisure & & Holidays (Formerly Peerless Travel Pvt. Ltd) started as a dream
and like any beautiful dream it kept growing. We started operations in 1991. Our
beginning was humble. Our core strength was derived from our highly experienced and
dedicated team of travel and hospitality professionals. With your support and strong
belief in our brand, we began to evolve as one of the leading agencies in holiday
services.

Kaizen Leisure & Holidays is an IATA (International Air Transport Association)

accredited organization and a member of TAAI (The Travel Agents Association of
India). We are centralized (operations and marketing) at Kolkata but with our
nationwide infrastructure base we can provide quality services at the most competitive
prices. Both inbound and outbound tours are organized by us with comfort as our

in the individuals right to grow and prosper within a hospitable living environment
and commercially viable business space. We offer space, which is Housing
Bengal Peerless Housing Development Company Limited incorporated in 1994, is a
joint venture between the West Bengal Housing Board and The Peerless General
Finance and Investment Company Limited. The Company is a perfect combination of
public sector dynamism with private sector entrepreneurship thereby creating for itself
a position of eminence and prominence among Real Estate Development Companies in
West Bengal.
The Vision
Bengal Peerless aims to provide business and living space to all sections of society
since we believe that shelter and livelihood are the primary need for every human
being and every individual must be provided with an opportunity to get his own.
The Commitment
Bengal Peerless endeavors to provide space to all while demanding the very least. We
20
believe affordable as well as completely secured. Architectural details are given great
consideration, so as not to disturb the serene beauty of the natural landscape.
Fluctuating real estate prices and other external adversities do not compel us to shift
the burden of price escalation upon our allottees. We remain steadfast to our
commitment to provide dwellings and commercial spaces of the highest quality.

The Government of West Bengal in an effort to combat the problem of Housing

formed Joint Sector Companies with West Bengal Housing Board and Private
Entrepreneurs. Thus Bengal Peerless Housing Development Company Limited was
formed in 1994 with West Bengal Housing Board and The Peerless General Finance
and Investment Company Limited.
During the year the Company has successfully completed ―Avishikta-I‖ Housing
Complex on E.M.Bypass, Kolkata, being the first ‗High Rise‘ Housing Complex
implemented by the Company.
Sonar Taree Housing Complex, a fusion of Colonial and Tagore's architecture "Sonar
Taree" at Santiniketan consists of 355 dwelling units and bungalows and is an
embodiment of spiritual bonding with nature.
Animikha Housing Complex, the first Public-Private joint project at New Town,
Kolkata received appreciation from all corners of the society.
Avishikta Housing Complex, a Rs 102 crore project, on E. M. Bypass, having 672
dwelling units is an epitome if collective living with deep rooted sense of socio-
economic cohesion.
Aahirini Neighbourhood Centre- a comprehensive shopping complex is the first
commercial centre at New Town, Kolkata
Axis Multi-complex, an Rs 250 crore project is the first of its kind Multi Utility
Infrastructure project being implemented at New Town, Kolkata. A grand shopping
mall with entertainment, sports, fashion shows European luxury products and
information communication technology products as its constituents.
Alaktika Housing Complex under implementation at Action Area II of New Town,
Kolkata, is an Rs 60 crore project and promises to be a fusion of cultural heritage and
class ambience.
Avishar Commercial Complex at the junction of E. M. Bypass and Price Anwar Shah
Road shall be a landmark structure on the E. M. Bypass.

Old Age Homes

Social service is very much a part of the Company's activities. Peerless Polyclinics in
various parts of Kolkata & Milan Thirtha an Old Age Home at Baranagar are some of
the tangible instances of the company's continuing social commitment.

21
Organization Theory

Few things in today's world are as important or as taken for granted as organizations.
Although we routinely enjoy the goods and services that organizations provide, we
rarely bother to wonder about how these goods and services are produced. We see news
film of production lines churning out automobiles or computers, and we read in
newspapers that local schools or hospitals are using new technologies such as the
Internet and online learning to improve their productivity. Yet we rarely question how or
why these organizations go about their business. Most often, we think about
organizations only when they fail us in some way—for example, when we are forced to
wait two hours in the emergency room to see a doctor, when our new computer crashes,
or when we are at the end of a long line in a bank on a Friday afternoon. When such
things happen, we wonder why the bank did not anticipate
The rush of people and put on more tellers, why the hospital made us spends 30 minutes
filling out paperwork in order to obtain service and then kept us waiting for an hour and
a half, or why computer companies don't insist on higher quality hardware and bug-free
software from their suppliers.
Most people have a casual attitude toward organizations because organizations are
intangible. Even though most people in the world today are born, work, and die in
organizations, nobody has ever seen or touched an organization. We see the products or
services that an organization provides, and sometimes we see the people whom the
organization employs as, for example, when we go into a FedEx Kinko‘s store or
doctor's office. But the reason an organization, such as FedEx Kinko‘s, is motivated to
provide goods and services, and the way it controls and influences its members so that
it can provide them, are not apparent to most people outside the organization.
Nevertheless, grouping people and other resources to produce goods and services is the
essence of organizing and of what an organization does.1
An organization is a tool used by people to coordinate their actions to obtain
something they desire or value – that is, to achieve their goals

The basic building blocks of differentiation are organizational roles (see Figure 4.2).
An organizational role is a set of2 task-related behaviors required of a person by his
or her position in an organization. For example, the organizational role of a B.A.R.
and Grille waiter is to provide customers with quick, courteous service to enhance
their dining experience. A chef's role is to provide customers with high-quality,
appetizing, cooked-to-order meals. A person who is given a role with identifiable
tasks and responsibilities can be held accountable for the resources used to accom-
plish the duties of that position. Bob and Amanda held the waiter responsible for sat-
isfying customers, the restaurant's crucial stakeholder group. The chef was account-
able for providing high-quality meals to customers consistently and speedily.
As the division of labor increases in an organization, managers specialize in
some roles and hire people to specialize in others. Specialization allows people to
develop their individual abilities and knowledge, which are the ultimate source of an
organization's core competences. At the B.A.R. and Grille, for example, the owners
identified various tasks to be done, such as cooking, bookkeeping, and purchasing,
and hired people with the appropriate abilities and knowledge to do them.
Organizational fixture is based on a system of interlocking roles, and the rela-
tionship of one role to another is defined by task-related behaviors. Some roles
require people to oversee the behavior of others: Shift managers at the B.A.R. and

22
 Grille oversee the waiters and busboys. A person who can hold another person
accountable for his or her performance possesses authority over the other person.

Authority is the power to hold people accountable for their3 actions and to make
decisions about how to invest and use organizational resources. The differentiation of*
organization into individual organizational roles results in clear authority
responsibility requirements for each role in the system. When an individual clearly
understands the responsibilities of his or her role and what a superior can require (a
person in that role, the result within the organization is control—the ability to coordinate
and motivate people to work in the organization's interests

Subunits: Functions And Divisions

In most organizations, people with similar and related roles are grouped into a subunit.
The main subunits that develop in organizations are functions (or department and
divisions. A function is a subunit composed of a group of people, work together, who
possess similar skills or use the same kind of knowledge, tools, or techniques to perform
their jobs. For example, in the B.A.R. and Grille, chefs are grouped together as the
kitchen function, and waiters are grouped together as the dining function. A division is a
subunit that consists of a collection of functions or departments that share responsibility for
producing a particular good or service. Take another look Figure 4.1E. Each restaurant is a
division composed of just two functions—dining room and kitchen—which are
responsible for the restaurant's activities. Large com] like General Electric and Procter &
Gamble have dozens of separate divisions, each one responsible for producing a
particular product. In addition, these companies face the problem of how to organize these
divisions' activities on a global level so they can! Create the most value, an issue discussed
in detail in Chapter 8.
The number of different functions and divisions that an organization possesses is a
measure of the organization's complexity—its degree of differentiation. Differentiation into
functions and divisions increases an organization's control over its activities and allows
the organization to accomplish its tasks more effectively.
As organizations grow in size, they differentiate into five different kinds of functions.4
Support functions facilitate an organization's control of its relations with its environment
and its stakeholders. Support functions include purchasing, to handle the acquisition of
inputs; sales and marketing, to handle the disposal of outputs; and public relations and
legal affairs, to respond to the needs of outside stakeholders. Bob and Amanda Richards
hired a manager to oversee purchasing for all three restaurants and an accountant to
manage the books (see Figure 4.IE).
Production functions manage and improve the efficiency of an organization's
conversion processes so that more value is created. Production functions include
production operations, production control, and quality control. At Ford, the production
operations department controls the manufacturing process; production control decides
on the most efficient way to produce cars at the lowest cost; and quality control monitors
product quality.
Maintenance functions enable an organization to keep its departments in operation.
Maintenance function^ include personnel, to recruit and train employees and improve
skills; engineering, to repair broken machinery; and janitorial services, to keep the work
environment safe and healthy—conditions that are very important to a restaurant like
the B.A.R. and Grille.
Adaptive functions allow an organization to adjust to changes in the environment.
Adaptive functions include research and development, market research, and long-range planning,
which allow an organization to learn from and attempt to manage its environment and thus

23
increase its core competences. At the B.A.R. and Grille, developing new menu choices to
keep up with customers' changing tastes is an important adaptive activity.
Managerial functions facilitate the control and coordination of activities within and
among departments. Managers at different organizational levels direct the acquisition
of, investment in, and control of resources to improve the organization's ability to create value.
Top management, for example, is responsible for formulating strategy and establishing the
policies the organization uses to control its environment. Middle

Among the various factors of production, which are used in an organization, human
resource is the most important. This is because the efficient use of physical resources
(i.e. land, machinery, materials) ultimately depends on how the human factor is put to
good use on various operations. The most efficient machinery in the world will not
produce at an optimum level unless the people who operate the machinery know
how to make it perform at its best and most importantly, are motivated to make their
equipment produce efficiently.
If the skill and the will are properly applied, wonderful things can happen:
• Human resources help in transforming the lifeless factors of production into
useful products.
• They are capable of enlargement i.e. capable of producing an output that is
greater than the sum of inputs. Once they get inspired, even ordinary people can
deliver extraordinary results.
• They can help an organisation achieve results quickly, efficiently and
effectively.1
To extract the best out of people, therefore, the organisation must provide a healthy
work climate where they can exploit their talents fully while realising goals assigned
to them. They must have requisite skills to handle their jobs in a competent way.
Above all, to get the best out of people, they must be managed well and this
requires leadership. This is where human resource managers play a critical role in
bridging gaps between employee expectations and organisational needs by adopting
appropriate human resource strategies and practice.

Only recently have companies looked at HRM as a means to contribute to profitability,

quality, and other business goals through enhancing and supporting business operations.
Table 1.1 shows the responsibilities of human resource departments. The average ratio of
HR department staff to total number of employees has been 1.0 for every 100 employees
served by the department.2 The median HR department expenditure per employee was
$813, with wholesale and retail trade organizations spending the least ($282) and finance,
insurance, real estate, advanced manufacturing, and communications and information
companies the most ($1,300). As with other business functions, HR expenditures relative
to operating costs have been fairly stable over the past few years.
The HR department is solely responsible for outplacement, labor law compliance, record
keeping, testing, unemployment compensation, and some aspects of benefits
administration. The HR department is most likely to collaborate with other company
functions on employment interviewing, performance management and discipline, and
efforts to improve quality and productivity. Large companies are more likely than small
ones to employ HR specialists, with benefits specialists being the most prevalent. Other
common3 specializations include recruitment, compensation, and training and devel-
opment.
24
Many different roles and responsibilities can be performed by the HR department
depending on the size of the company, the characteristics of the workforce, the
industry, and the value system of company management. The HR department may take
full responsibility for human resource activities in some companies, whereas in others it
may share the roles and responsibilities with managers of

Personnel/Human Resource Management - Func

P/HRM is concerned with two sets of functions, namely - managerial functions and
operative functions.

Managerial Functions
The basic managerial functions comprise planning, organizing, directing and
controlling.
• Planning: This function deals with the determination of the future course
of action to achieve desired results. Planning of personnel today prevents
crises tomorrow. The personnel manager is expected to determine the
personnel programmed regarding recruitment, selection and training of
employees.
• Organizing: This function is primarily concerned with proper grouping of
personnel activities, assigning of different groups of activities to different
individuals and delegation of authority. Creation of a proper structural
framework is his primary task. Organizing, in fact, is considered to be the
wool of the entire management fabric and hence cannot afford to be ignored.
• Directing: This involves supervising and guiding the personnel. To execute
plans, direction is essential for without direction there is no destination. Many
a time, the success of the organization depends on the direction of things
rather than their design. Direction then consists of motivation and leadership.
The personnel manager must be an effective leader who can create winning
25
 teams. While achieving results, the personnel manager must, invariably, take
care of the concerns and expectations of employees at all levels.
• Controlling: Controlling function of personnel management comprises
measuring the employee's performance, correcting negative deviations and
industrial assuring an efficient accomplishment of plans. It makes individuals
aware of their performance through review reports, records and personnel audit
programmers. It ensures that the activities are being carried out in
accordance with stated plans.

Operative Functions
The operative functions of P/HRM are related to specific activities of personnel
management, viz., employment, development, compensation and industrial
relations. These functions are to be performed in conjunction with managerial
functions.

1. Procurement function: The first operative function of personnel management is

procurement. It is concerned with procuring and employing people who possess
necessary skill, knowledge and aptitude. Under its purview you have job analysis,
manpower planning, recruitment, selection, placement, induction and internal mobility.
i. Job analysis: It is the process of collecting information relating to the operations
and responsibilities pertaining to a specific job.
ii. Human resources planning: It is a process of determining and assuring that the
organisation will have an adequate number of qualified persons, available at proper times,
performing jobs which would meet their needs and provide satisfaction for the individuals
involved.
iii. Recruitment: It is the process of searching for prospective employees and stimulating
them to apply for jobs in the organisation.
iv. Selection: It is the process of ascertaining qualifications, experience, skill and
knowledge of an applicant with a view to appraising his/her suitability to the job in
question.
v. Placement: It is the process that ensures a 360Q fit, matching the employee's
qualifications, experience, skills and interest with the job on offer. It is the personnel
manager's responsibility to position the right candidate at the right level.
vi. Induction and orientation: Induction and orientation are techniques by which a new
employee is rehabilitated in his new surroundings and introduced to the practices, policies,
and people. He must be acquainted with the principles which define and drive the
organisation, its mission statement and values which form its backbone.
vii. Internal Mobility: The movement of employes from one job to another through
transfers and promotions is called internal mobility. Some employees leave an organisation
due to various reasons leading to resignation, retirement and even termination. These
movements are known as external mobility. In the best interest of an organisation and its
employees, such job changes should be guided by well-conceived principles and policies.
2. Development: It is the process of improving, moulding, changing and developing
the skills, knowledge, creative ability, aptitude, attitude, values and commitment

26
 based on present and future requirements both at the individual's and organisation's
level. This function includes:
i. Training: Training is a continuous process by which employees learn skills,
knowledge, abilities and attitudes to further organisational and personnel goals.
ii. Executive development: It is a systematic process of developing managerial skills and
capabilities through appropriate programmes.
iii. Career planning and development: It is the planning of one's career and
implementation of career plans by means of education, training, job search and
acquisition of work experiences. It includes succession planing which implies
identifying developing and tracking key individuals for executive positions
iv. Human resource development: HRD aims at developing the total organisation.
It creates a climate that enables every employee to develop and use his capabilities
in order to further both individual and organisational goals.
3. Motivation and compensation: It is a process which inspires people to give their
best to the organisation through the use of intrinsic (achievement, recognition,
responsibility) and extrinsic (job design, work scheduling, appraisal based incentives)
rewards.
i. Job design: Organising tasks, and responsibilities towards having a productive
unit of work is called job design. The main purpose of job design is to integrate the
needs of employers to suit the requirements of an organisation.
ii. Work scheduling: Organisations must realize the importance of scheduling work
to motivate employees through job enrichment, shorter work weeks flexi-time,
work sharing and home work assignments. Employees need to be challenged at
work and the job itself must be one that they value. Work scheduling is an
attempt to structure work, incorporating the physical, physiological and
behavioural aspects of work.
iii. Motivation: Combining forces that allow people to behave in certain ways is an
integral aspect of motivation. People must have both the ability and the
motivation if they are to perform at a high level. Managers generally try to
motivate people through properly administered rewards (financial as well as
non-financial),

iv. Job evaluation: Organisations formally determine the value of jobs through the
process of job evaluation. Job evaluation is the systematic process of determining
the relative worth of jobs in order to establish which jobs should be paid more
than others within the organisation. Job evaluation helps to establish internal
equality between various jobs.
v. Performance appraisal: After aA employee has been selected for a job, has been
trained to do it and has worked on it for a period of time, his performance should be
evaluated. Performance evaluation or appraisal is the process of deciding how
employees do their jobs. It is a method gf evaluating the behaviour of employees
at the workplace and normally includes both the quantitative and qualitative
aspects of job performance. It is a systematic and objective way of evaluating
work-related behaviour and potential of employees. It is a process that involves
determining and communicating to an employee how he or she is performing
and ideally, establishing a plan of improvement.

27
 The appraisal process consists of six steps: (1) establish performance standards with
employees; (2) set measurable goals (manager and employee); (3) measure actual
performance; (4) compare actual performance with standards; (5) discuss the
appraisal with the employees and (6) if necessary initiate corrective action.
vi. Compensation administration: Compensation administration is the process of
dividing how much an employee should be paid. The important goals of
compensation administration are to design a low-cost pay plan that will attract,
motivate and retain competent employees-which is also perceived to be fair by
these employees.
vii. Incentives and benefits: In addition to a basic wage structure, most
organisations nowadays offer incentive compensation based on actual
performance. Unlike incentives, benefits and services are offered to all
employees as required by law including social security, insurance, workmen's
compensation, welfare amenities etc. Organisations have been offering a plethora
of other benefits and services as well as a means of 'sweetening the pot',
(employee stock options, birthday gifts, anniversary gifts, paid holidays, club
membership)
4. Maintenance: It aims at protecting and preserving the physical and psychological health
of employees through various welfare measures.
i. Health and safety: Managers at all levels are expected to know and enforce safety
and health standards throughout the organisation. They must ensure a work
environment that protects employees from physical hazards, unhealthy
conditions and unsafe acts of other personnel. Through proper safety and health
programmes, the physical and psychological well-being of employees must be
preserved and even improved.
ii. Employee welfare: Employee welfare includes the services, amenities and
facilities offered to employees within or outside the establishment for their
physical, psychological and social well being. Housing, transportation, education
and recreation facilities are all included in the employee welfare package.

iii. Social security measures: Managements provide social security to their employees
in addition to fringe benefits. These measures include: (a) Workmen's
compensation to those workers (or their dependents) who are involved in
accidents; (b) Maternity benefits to women employees; (c) Sickness benefits and
medical benefits; (d) Disablement benefits/allowance; (e) Dependent benefits; (f)
Retirement benefits like Provident Fund, Pension, Gratuity, etc.

Integration function:
This tries to integrate the goals of an organisation with employee aspirations through
various employee-oriented programmes, like redressing grievances promptly,
instituting proper disciplinary measures, empowering people to decide things
independently, encouraging a participative culture, offering constructive help to trade
unions etc.
i. Grievance redressal: A grievance is any factor involving wages, hours or
conditions of employment that is used as a complaint against the employer.
28
 Constructive grievance handling depends first on the manager's ability to recognise,
diagnose and correct the causes of potential employee dissatisfaction before it
converts into a formal grievance.
ii. Discipline: It is the force that prompts an individual or a group to observe the rules,
regulations and procedures, which are deemed .necessary for the attainment of an
objective.
iii. Teams and teamwork: Self-managed teams have emerged as the most important
formal groups in today's organisations. They enhance employee involvement and
have the potential to create positive synergy. By increasing worker interaction,
they create camaraderie among team members. They encourage individuals to
sublimate their individual goals for those of the group. Teams have inherent strengths
which ultimately lead to organisational success at various levels.
iv. Collective bargaining: It is the process of agreeing on a satisfactory labour
contract between management and union. The contract contains agreements about
conditions of employment such as wages, hours, promotion, and discipline; lay
off, benefits, vacations, rest pauses and the grievance procedure. The process of
bargaining generally takes time, as both parties tend to make proposals and
counter- proposals. The resulting agreement must be ratified by unions, workers
and management.
v. Employee participation and empowerment: Participation means sharing the
decision-making power with the lower ranks of an organisation in an
appropriate manner. When workers participate in organisational decisions they
are able to see the big picture clearly and also how their actions would impact the
overall growth of the company. They can offer feedback immediately based on
their experiences and improve the quality of decisions greatly. Since they are now
treated with respect, they begin to view the job and the organisation as their
own, and commit themselves to organisational objectives whole-heartedly.
vi. Trade unions and employees association: Trade union is an association either of
employees or employers or independent workers. It is a relatively permanent a
body formed by workers with the objective of countering exploitation and
harassment. It strives towards providing economic and social benefits to the
labour community. Trade unions have always played a powerful role in
improving the lot of workers in India, using aggressive bargaining tactics.
However since the 90's, the situation changed dramatically. Unable to fight the
forces of competition, many employers have been forced to shutdown units and
scale down operations. This has made both parties realise the importance of
bargaining for their rights in an atmosphere of 'give and take*.
vii. Industrial relations: Harmonious industrial relations between labour and
management are essential to achieve industrial growth and higher productivity.
When the relationship between the parties is not cordial, discontentment develops
and conflicts erupt abruptly. It is not always easy to put out the fires with the
existing dispute-settlement-machinery, created by the government. Hence both
labour and management must appreciate the importance of openness, trust and
collaboration in their day-to-day dealings.

6. Emerging issues: Effective management of human resources depends on refining

HRM practices to changing conditions. Hence the need to look at other important

29
issues that can motivate people to give their best in a dynamic and ever-changing
environment
i. Personnel records: Personnel records such as papers, files, cards, cassettes
and films are maintained to have tangible record of what is actually
happening in an organization and to formulate appropriate HR policies and
program‘s (based on historical records, actual experience and future trends) from
time to time.
ii. Human resource audits Human resource audit refers to an examination and
evaluation of policies, procedures and practices to determine the effectiveness
of HRM. Personnel audit (a) measures the effectiveness of personnel
programmes and practices and (b) determines what should or should not be
done in future.
iii. Human resources research: It is the process of evaluating the effectiveness of
human resource policies and practices and developing more appropriate ones.

iv. Human resources accounting (HRA): It is a measurement of the cost and

value of human resources to the organization. Human resource management is
said to be effective if its value and contribution in any organization is more
than its cost.
v. Human resource information system: HRIS is an integrated system designed
to improve the efficiency with which HR data is compiled. It makes HR records
more useful to the management by serving as a source of information.

vi. Stress and counseling: Stress is the psychological and physical reaction to certain
life events or situations. At an organizational level, stress results in burn out,
substance abuse in the form of alcohol or drug use/dependence reduced job
satisfaction, increased absenteeism and increased turnover. Companies,
therefore, are closely looking at what should be done to promote the physical
and mental well being of employees through proper counseling and
employee development programmes.
vii. International human resource management: International business is important
to almost every business today and so firms must increasingly be managed
with a clear global focus. This of course, poses many challenges before
managers including coordinating production, sales and financial operations on
a worldwide basis. International HRM places greater emphasis on a number
of responsibilities and functions such as relocation, orientation and training
services to help employees adapt to a new and different environment outside
their own country

30
Personnel Policies, Procedures and Programmes
After the establishment of objectives of personnel management, personnel
policies are to be formulated. Policies
2
are general statements that guide thinking
and action in decision-making.
Definition of Personnel Policy
Personnel policies guide action. They offer the general standards or parametres
based on which decisions are reached. They serve as a road map for managers on
a number of issues such as recruitment (the job for physically challenged only),
selection (selection based on merit only), promotion (performance leads to
promotion) and compensation. Important features of an effective personnel
policy can be broadly outlined as:
i. It is generally derived from the personnel objectives of an organisation.
ii. It summaries past experience in the form of useful guidelines that help
managers to speed-up the decision making process. It helps managers as well
as subordinates to dispose of repetitive problems
A large number of corporations have established Human Resources Develop-
ment Departments, introduced new systems of HRD, and made structural
changes in terms of differentiating the HRD function and integrating it with
HR function. A good number of CEOs saw a hope in HRD for most of their
problems, issues and challenges. HR systems are people intensive and
require a lot of managerial time. There are examples of corporations where
HRD has taken a driver's seat and has given a lot of benefits. In to-days
competitive world, "people" or employees can give a good degree of
competitive advantage to the company. To get the best out of HR, there
should be a good alignment of the function, its strategies, structure, systems,
and styles with business and its goals (financial, customer etc. parameters). It
should be aligned both with the short-term goals and long term strategies. If
it is not aligned, HR could become a big liability to corporations. Besides
this alignment, the skills and styles of HR staff, the line managers and the
top management should synergise with the HR goals and strategies. HRD
audit is an attempt to assess these alignments and ensure the same.
Having a separate or a dedicated HRD Department does not guarantee
good HRD. Good HD requires the following:
• The top management of the organization recognizes the strategic
advantage and the critical value addition provided by people
• The role of HRD is well carved out
• Line managers understand, accept, and internalize their own role in
development
• A learning culture is created in the organization
• Appropriate HRD systems are identified to suit the needs, requirements and
strategies of the corporation and implemented well
• The systems are periodically reviewed and aligned and realigned with the
business goals of the organisation.
• Support HR policies are formulated and implemented
31
• The HRD function is handled by competent people
• The styles, belief^ and values of the top management is aligned to promote a
good learning and competency building culture
• HRD function and the implementation of HRD is periodically reviewed and
renewed
It is to achieve the last objective HRD audit has come in to existence.
HRD audit is a comprehensive evaluation of the current human resource
development strategies, structure, systems, styles and skills in the context of
the short and long-term business plans of a company. HRD audit attempts to
find out the future HRD needs of the company after assessing the current
HRD activities and inputs available.
In the last decade the authors of this book pioneered in India, a
methodology for auditing HRD function and implemented the same in a good
number of Indian companies (Rao, 1998)!

iii. supply the information required by various agencies on the accidents,

employment position, strikes, absenteeism, turnover, etc.
iv. provide the information about manpower inventory for manpower planning
and succession planning.
v. conduct research in personnel and industrial relations areas.
vi. identify training and development needs.
vii. revise pay scales and benefits from time to time.
Obviously, managers cannot function effectively without the information on
various areas of personnel and industrial relations.

Personnel/HR Audit
Personnel records and reports provide information regarding the utilization of
human resources in an objective way. However, in most cases this is not
sufficient. A critical evaluation of manpower programmes might be required to
find out the areas where improvements are needed and to set things in order.
In place of informal impressions gathered and summarised through records
and reports, a systematic and analytical search is made to find out the
effectiveness of personnel management. According to Seybold, personnel audit
refers to an examination and evaluation of policies, procedures and practices to
determine the effectiveness of personnel management. Personnel audit covers
basically three things:2
1. Measurement and evaluation of personnel programmes, policies and
practices;
2. Identification of gap between objectives and results; and
3. Determination of what shoulder what should not be done in future.
32
Objectives of Personnel/HR Audit
"The basic objective of personnel audit is to know how the various units are
functioning and how they have been able to meet the policies and guidelines
which were agreed upon; and to assist the rest of the organisation by identifying
the gaps between objectives and results, for the end-product of an evaluation
should be to formulate plans for corrections of adjustments" (Gray).
The objectives of personnel audit are:
a. To review the organisational system, human resources subsystem in order
to find out the efficiency of the organisation in attracting and retaining
human resources.
b. To find out the effectiveness of various personnel policies and practices.
c. To know how various units are functioning and how they have been able to
implement the personnel policies, and
d. To review the personnel system in comparison with organisations and
modify them to meat challenges of personnel management.
Types of Personnel Records
Personnel records include the following:
• Job application and test scores
• Job descriptions and job specifications
• Interview results
• Employment history
• Medical reports
• Attendance records
• Payroll
• Employee ratings
• Training records
• Leave records
• Accident and sickness records
• Grievances, disputes records
• Contracts of employment
• Records to be kept under various statutes

Need for Personnel Audit

Though there is no legal obligation to audit personnel policies and practices,
some of the modern organisations have accepted it due to certain compelling
reasons:
i. Increasing size of the organisation and personnel in several organisations,
ii. Changing philosophy of management towards human resources,
33
iii. Increasing strength and influence of trade unions.
iv. Changing human resources management philosophy and thereby personnel
policies and practices throughout the world.
v. Increasing dependence of the organisation on the human resources
system and its effective functioning.
Benefits
The benefits of a human resource management audit may be summarised thus:
• Identifies the contributions of the HR department.
• Improves the professional image of HR department.
• Encourages greater responsibility and professionalization among members
of HR Department.
• Classifies the HR departments' duties and responsibilities.
• Stimulates uniformity of personnel policies and practices.
• Finds critical personnel problems.
• Ensures timely compliance with legal requirements.
• Reduces human resource costs.

Scope of Personnel Audit

The scope of personnel audit is very wide. It covers areas like personnel
philosophy, policies, programmes, practices and personnel results. The major
areas of personnel audit include programming, forecasting and scheduling to
meet organisation and personnel needs. The areas of recruitment, selection,
careers, promotions, training and development also come within the scope of
personnel audit. Further, the areas of leadership, welfare, grievances,
performance appraisal, employee mobility, industrial relations are also included
within the scope of personnel audit. The areas and levels of personnel audit,
according to Dale Yoder, are fairly exhaustive3 (See Table 27.2).
t a b l e 27.2

| Personnel Audit - Areas and Levels

Major Areas Levels & Examples of Audit Data

Level 1 - Results Level II - Level III - Policy

Programmes &
Procedures

34
Planning: Personnel shortages Time bound or Explicit statement to
supplies, layoff, etc. network provide inclusive
Forecasting &
cost/benefit budget, personnel plans for
scheduling to meet
etc. present & future
organisation & needs.

Staffing & Recruitment times In house & out Let cream rise; non-
Development: costs; training times house training discrimination, etc.
cost, labour programmes;
Defined requirements &
turnover etc. guidance in careers,
careers; sources,
etc.
requirement, selection,
training, promotions

Organising: Feedback, reader Job definitions for Encourage flexibility,

interest, extent of individuals, depart- reduce resistance to
Maintaining structures
formal, ments, task forces, change, effective
for co-ordinating,
organisation, house organs, etc. three-way
communicating,
reports, records, communication, etc.
collaborating, etc.
etc.
Motivation & Productivity, Job enlargement; Gain high personal
Commitment: performance norms wage & salary identification, ensure
Individual & group comparative costs, administration; whole man
motivation, interest, etc. morale survey; exit satisfactions.
effort, contribution interviews; fringe
benefits, etc.

Administration: Style Suggestions, Consultative Style adapted to

of leadership and promotions, supervision; changing expectations;
supervision; delegation, grievances, collective participative
negotiation. discipline, union- bargaining, union- involvement, collective
management management bargaining, etc.
cooperation. committees, etc.

Research & Changes, R&D approach in all Test old & new theory;
Innovation: experiments, areas; suggestion encourage creativity in
Experiments & theory research reports, plans, etc. management.
testing in all areas. publications.

35
HR Audit Process
The personnel audit should probe much deeper, evaluating personnel
policies, programmes, philosophy, practices and concepts comparing
with standards and with those of the personnel records of the said
organisation and other organisations. The level and the depth of the
investigation should be decided in advance. The process of personnel
audit, usually carried out through an attitudinal survey or by interpreting
data, includes:
i. Identifying indices, indicators, statistical ratios and gross numbers in
some cases.
ii. Examining the variations in time-frame in comparison with a similar
previous corresponding period.
iii. Comparing the variations of different departments during different
periods.
iv. Examining the variations of different periods and comparing them
with similar units and industries in the same region.
v. Drawing trend lines, frequency distributions and calculating
statistical correlations.
vi. Preparing and submitting a detailed report to the top management and
to the managers at appropriate levels for information and necessary
action.
Various personnel policies, procedures and practices can be evaluated by
asking various questions of the following type:

1. What are they? (i.e., policies, procedures/ practices).

2. How are they established?
3. How are they communicated to various managers and employers
concerned?
4. How are they understood by individual employers, supervisors and
managers at various levels?
5. Are they consistent with the managements' organisational
philosophy and human resource management philosophy?
6. Are they consistent with the existing trends towards human
resource management and research?

36
7. What are the controls that exist for ensuring their effective and uniform
application?
8. What measures exist to modify them to meet the organisational
requirements?

Most organisations that employ HR audit examine the employment

statistics pertaining to a period— making use of ratios (given below):
Effectiveness Ratios
Ratio of number of employees to total output in general.
Sales in dollars per employee for the whole company or by organisational
unit (business).
Output in units per employee hour worked for the entire organisational
unit.
Scrap loss per unit of the organisation.
Payroll costs by unit per employee grade.

Accident Ratios
Frequency of accident rate for the organisation as a whole or by unit.
Number of lost-time accidents.
Compensation paid for accidents per 1,000 hours worked.
Accidents by type.
Accidents classified by type of injury to each part of the body.
Average cost of accident by part of the body involved.

Organisational Labour Relations Ratios

Number of grievances filed. Number of arbitration awards lost.

Turnover and Absenteeism Ratios

Attendance, tardiness, and overtime comparisons by organisational
unit as a measure of how well an operation is handling employees.
Employee turnover by unit and for the organisation.

Employment Ratios
Vacations granted as a percentage of employees eligible.
Sick-leave days granted as a percentage of labour-days worked.
Maternity leaves granted per 100 employees.
37
Educational leaves granted per 100 employees.
Personal leaves granted per 100 employees.
Employment distribution by chronological age.
Employment distribution by length of service with organisation.
Employment distribution by sex, race, national origin, religion.
Managerial distribution by chronological age, sex, race, national origin,
religion.
Average age of workforce.
Average age of managerial workforce.

Methodology of HRD Audit

In order to arrive at answers to the above types of questions the
auditors use a number of methods. These are described in some detail
below.
1. Individual Interviews
The auditors normally make it a point to interview the top level management
and senior managers individually. Such individual interviews are a must for
capturing their thinking about the future plans and opportunities available for
the company. Also by virtue of occupying strategic positions the top
management provides a perspective required for a good HRD audit. Thus a
good HRD audit begins with
Individual interviews of top management. Individual interviews also are
essential when sensitive matters and sensitive information has to be obtained.
Such information is available particularly about the styles and culture through
individual interviews. Union leaders, departmental heads, some strategic clients
and informal leaders are all interviewed individually. In addition if the
organization is small and is manned by largely professionals an attempt is made
to enlarge the coverage and randomly selected representative sample of
employees from different levels and different functions could be interviewed.
2. Group Interviews
Normally for the audit of companies having thousands of employees, it is not
feasible to meet everyone individually. It is the experience of the author that
group discussions and interviews is a good mechanism of collecting
information about the effectiveness of existing systems. Group interviews are
conducted normally for groups of four to eight individuals. It is preferable to
have employees drawn from same or similar levels. This is because in Asian
cultures there is likely to be inhibition on the part of junior employees to freely
express their views in the presence of their seniors. However, it is quite common
to give cross functional representation of employees in the same group. If the
organization is large, an attempt is made to conduct group interviews for each
function separately to keep the levels homogenous. In the individual and group
interviews for HRD audit normally the following open ended questions are
asked:
i. What do you see as the future growth opportunities and business
directions of the company?
38
 ii. What skills and competencies does the company have which you are
proud of?

iii. What skills and competencies do you need to run your business or to
perform your role more effectively at present?
iv. What are the strengths of your HRD function?

v. What are the areas where your HRD function can do better?
vi. What is good about your HRD sub-systems like performance
appraisal, career planning, job rotation, training, quality circles,
induction training, recruitment policies, performance counseling, worker
development programmes, HRD departments, etc?

vii. What is weak about them? What can be improved?

viii. What changes do you suggest to strengthen HRD in your company?

ix. What do you think are the ways in which line managers can perform
more development roles, etc?

3. Workshop
In some cases the individual and group interviews are substituted by
large-scale workshops. In the workshop a large number of participants
Ranging from 30 to about 300 could be gathered in a room and could be asked
to do the HRD audit. Normally in the workshop the participants work in small
groups either around various sub-systems of HRD or around different
dimensions of HRD, do a SWOT analysis and make a presentation. The
workshops also can be used focusing specifically on individual HRD systems
like performance appraisal. The workshop outcomes in the experience of the
author have been found to be very good.
The HRD audit if conducted through participatory methods in itself may
initiate the change process. Even if it does not, it is a potential diagnostic tool
and can provide a lot of information to the top management on human
processes and help them plan further interventions.
4. Questionnaire Method
TVRLS has developed a comprehensive questionnaire which has to be
administered to the executives of a company. This questionnaire has over 250
items and requires about 90 minutes to complete. This questionnaire can be
administered individually or in a group. The author of this paper found it useful
to call groups of respondents selected randomly to a room and explain the
objectives and the process of HRD audit and administer the questionnaire then
and there itself. This ensures uninterrupted answering of the questionnaire and
provides scope for getting more credible data due to the personal explanations
39
given by the auditors. A number of other questionnaires have been developed
since the time the first comprehensive HRD audit questionnaires were prepared
by Rao and Pareek. These questionnaires attempt to assess various dimensions
of HRD including the competency base of HRD staff, the styles of line managers,
the implementation of various HRD systems etc.
The utility of the questionnaire is that it helps in benchmarking. TVRLS a
consulting firm specialising in HRD audit over the last several years have bench
marking data from several organisations.
5. Observation
In addition to the above the auditors should physically visit the workplace
including the plant, the machinery, the canteen, the toilets, the training rooms,
the hostels, the hospital, school, living colony, etc. These visits and observations
are meant to assess the extent to which a congenial and supportive human
welfare oriented climate exists in the company. This is essential because
employees are not likely to give their best if they do not live in good
surroundings, their health and education are riot taken care of, they do not have
good communication and other facilities and their work conditions are poor.
The observations can be conducted using a check list of questions.
6. Analysis of Secondary Data
Analysis of secondary data can give lots of insight into the HRD assets and
liabilities of the company. For example, in a company that had about 50 HR
people only two were found to have the required technical training in HRD
area. When an analysis of the training programmes attended by others was
carried out, it was found that a large number of them did not attend any HRD
programme in the last five years. Such analysis of secondary data can throw up
many insights. Analysis of age profiles of the employees, analysis of the training
attended, analysis of the minutes of the meetings held etc., help in determining
the assets and liabilities. Such an analysis should also pay attention to the costs
incurred by the company in terms of maintaining the HRD infrastructure, etc.
7. Analysis of Reports, Records, Manuals and other Published Literature
Published literature of the company including annual reports, marked hand-outs,
training calendar, personnel manual, and various circulars issued from time to
time are also likely to help immensely in assessing the strengths and weaknesses
of HRD.

Preparation for the Audit

The organization has to prepare itself for the audit. Normally in the audit the
HR function, systems, competencies, culture and the top management
commitment come under scrutiny. All diagnoses are painful particularly if
things have to improve. If things have to improve more work needs to be done,
new focal points have to be identified and implementation ahs to be stepped
up etc. In such cases there is more work and there are criticisms of the past.
Hence it may not be always a comfortable feeling to get audit done. Hence
audit requires a lot of courage and boldness on the part of the HR Department
to be self critical and open to examination.
HRD Audit has taken time to get popular for these and a variety of other
reasons. Once done HRD Audit could realign the firm goals to HRD and could
help people to drive business better and also uplift the HRD function.

40
 As preparation for the audit the auditors have to become familiar with the
current HRD status. They do this through examination of various documents
relating to the existing systems and processes.
The following points give a list of documents required by the auditors
before the audit.

Check-list of Documents to be made available by the HRD department for

Audit
1. Personnel Manual
2. Manpower planning guidelines
3. Recruitment policies
4. Promotion policies
5. Performance appraisal manuals
6. TQM manuals
7. Quality circles, shop-floor committee‘s etc. guidelines
8. Suggestion schemes and other guidelines
9. Training policy guidelines
10. Succession planning and career planning guidelines and methods
11. OD interventions if any taken by the organization
12. Activities of the HRD department—annual reports etc.
13. Training calendar and reports of training activities
14. Diagnostic and evaluation studies
15. Reward systems—policies and guidelines
16. Communication systems and reports
17. In-house Newsletters and other mechanisms
18. Delegation manuals or guidelines
19. Job-rotation and transfer policies and practices
20. Organizational structure of HRD department
21. Small group activities, shop-floor committees and details
22. Exit Interview guidelines and data
41
23. Documents dealing with facilities offered to employees
24. Worker education and training programs
25. Welfare schemes and facilities
26. Residential colony facilities - guidelines
27. Climate surveys, culture studies
28. Previous HRD audit reports
29. Other studies undertaken by summer trainees and students
30. Age profiles grade-wise and department-wise for assessing retirements etc.
31. Attrition rates, department or unit-wise and exit interview data
32. Any other documents having implication for HRD strategies
33. Organizational structure charts if necessary

BALANCED SCORECARD
Today it has become essential for all the functional areas to get linked to corporate
strategy. This requirement becomes more pronounced in the context of the HR
function. It has been realized the world over, especially in the corporate world,
that the human assets are the most valuable ones. To facilitate efficient
performance, it is essential that job profiles should get linked to the

A balanced scorecard provides an overall view of the organization's performance

by integrating financial measures along with key performance indicators such as
the perspective of customers, internal business processes, etc.
Corporate vision. It is in this context that the balanced scorecard has 1 formulated.
A balanced scorecard provides a framework for organizations to : the
implementation of strategy in an organization by linking the < initiatives, and
corresponding measures for evaluating success in organizations. In brief, it
provides an overall view of the organization performance by integrating financial
measures, along with key perform indicators, that is, the perspective of customers,
internal business ] organizational growth, learning and innovation.

42
Robert Kaplan and David Norton developed the balanced scorecard performance
measurement system. It evaluates organizational j from various perspectives, that
is, the perspectives of the customer, the process, the learning measures apart from
user feedback, and the measures.
The financial perspective includes the operating income, return on < employed
(ROCE), and economic value added (EVA). The customer's perspective is
measured through customer satisfaction, retention, and market share in target
segments. The business process perspective includes I throughput, and quality.
These are required for business processes: procurement, production, and order
fulfillment. The employee growth is measured through employee satisfaction,
employee retention, sets, etc.
The important aspects to be taken care of by organizations while < the balanced
scorecard are the objectives, measures/parameters for assessment, specific targets
to be achieved, and more importantly the in to be undertaken by the
organizations.
The construction of an individual organization's balanced is accomplished
through a systematic process, by building conscience clarity in terms of the
translation of the business unit's machines and s into operational objective
measures. Before the organization embarks \ the implementation of a balanced
scorecard programmed, it is < guide the senior management on issues such as the
requirement and 1 behind development and the adoption of the balanced
scorecard business reality and also the conceptual backdrop. The steps involved
process is:
1. Defining objectives and levels at the corporate level
2. Linking corporate objectives to individual line of business (LOB) and measures
3. Linking LOB objectives and measures to critical business
The objective of every organization's measurement system is to motivate I
employees to successfully implement the business unit's strategy. The balanced
scorecard a comprehensive view of organizational performance focusing on
vision d strategy
The Need for the Scorecard
The objective of every organization's measurement system is to motivate all
employees to successfully implement the business unit's strategy.
The balanced scorecard is a comprehensive view of organizational performance
with a focus on vision and strategy. To develop an effective balanced scorecard
one should keep in mind the organization's vision and decide which strategies will
lead to successful goal attainment. Thus, once a vision and subsequent strategy
have been developed, the individual metrics— or vital signs—will emerge from
that exercise quite naturally.
Building a Balanced Scorecard

43
The balanced scorecard framework and its information foundation can be created
using the following ten steps:
1. Building the business case
2. Identifying strategies
3. Identifying tactical objectives
4. Identifying performance measurements
5. Identifying data sources for calculating the measurements
6. Creating a data warehouse to supply the data
7. Selecting information technology to create the data warehouse
8. Creating the balanced scorecard report
9. Managing the strategy using the balanced scorecard 10. Refining the tactical
objectives in support of the strategy each of the ten steps is explained in further
detail below.
Building the business case It is critical to obtain executive support for the
balanced scorecard approach to ensure that management support, resources, and
strategic directions are made available. As with any strategic project, the first step
in obtaining this support is to build a business case for implementing a balanced
scorecard and data warehouse. The first step is to identify the experts and the key
stakeholders, who should be involved in the design of the balanced scorecard, and
to use their expertise to define the purposes and benefits of the project for
documentation in the business case. The business case should also include a
preliminary project budget and work plan.
The design team should include financial, operational, and clinical experts as well
as information technology professionals. The team should be educated in the
principles of the balanced scorecard and how a data warehouse can provide the
required performance data.

44
Identifying strategies The team should then identify specific bi strategies that
will achieve the purposes and benefits stated in the bi case. For example, a
healthcare organization's business case may include goal of transforming its
cardiology product line into a centre of excellence and marketing it as such to
patients, physicians, and insurance carriers.
Identifying tactical objectives The design team should then determine specific
tactical objectives for these strategies using the four balanced scorecard! perspectives
on performance: financial, customer, internal process, and hematite resource. Some
strategies will require that unique tactical objectives be developed. However,
the balanced-scorecard framework should including existing corporate tactical
objectives that can help achieve almost any strategy (for example, increasing
supply-chain efficiency).
Identifying performance measurements For each new and existing tactical
objective identified, the team should then determine outcome and driver
measurements. The measurements will identify trends in the desired direction in
the cause-and-effect relationships between drivers, performance outcomes, and
the ultimate achievement of tactical objectives. The team should devise outcome
and driver performance measurements that are effective in measuring the objective
and will not require expensive or unfeasible data-capture processes.
Identifying data sources Much of the data needed to calculate the performance
measurements may be obtained through the organization's existing information
systems. Most of the financial measurements can be derived from the general
ledger, accounts payable, grants management, and fixed-asset systems, and the
remaining data often can be obtained from human resources, payroll, cost
accounting, and budgeting systems. The existence of the required information in
these numerous and disparate systems indicates the need for integrating it into a
single source of information, that is, a data warehouse. Because the goal of the
balanced scorecard is to create views of the organization beyond the financial
aspect, data regarding clinical care, external benchmarks, national performance
indicators, and competitor market share are also required. Demographic,
volume, insurance type, and clinical data based on coding (for example, ICD-9,
CPT, DRG) are generally obtained from a patient billing or the medical record
system. Demographics, market research, satisfaction survey results, severity and
risk indexing, and quality-of-care measurements are not usually captured by
traditional healthcare ' information systems and need to be purchased from a
consulting firm, obtained through purchased software, or created using custom data
collection methods.
Creating the data warehouse A data warehouse is the information
foundation for a specific analytical subject area—in this case, performance
measurement. The many disparate information sources cited above need
to be brought together, corrected, and organized into a data warehouse designed
specifically for the analytical needs of performance measurement. The
required data must be extracted from the various internal and external
information systems and data sources. The disparate data must then be
integrated, the data values standardized, and invalid data removed or
corrected. The process and information technology to affect the extraction,

45
integration, correction, and transformation of data are best supplied by
information technology experts. The data are then loaded into the balanced-
scorecard data warehouse.
Selecting information technology A work group made up of information
technology professionals and experts in financial, clinical, and operational
processes from the design team should evaluate the data warehousing software on
the market. The group should determine the functionality needed and an
acceptable price range, then select and purchase the appropriate software.
It is also necessary to evaluate and purchase decision support software, which
includes the spectrum of tools that enables the creation and analysis of balanced
scorecard reports. A growing selection of software is designed specifically for
performance measurement analysis. These applications typically combine
interactive data exploration capabilities with scorecard reports and
'dashboards' that graphically depict the performance measurements. To
achieve higher levels of flexibility and customization, the organization may
choose to create decision-support capabilities using generic development tools.
Creating the balanced scorecard The installation of hardware and software
and the design for the balanced scorecard then need to be accomplished. For
most uses, the balanced scorecard requires data-extraction and measurement
calculation routines. The prepared data should then be loaded into the
performance measurement data warehouse. Finally, administrative and
automated processes should be put into place so that the balanced scorecard
can be updated periodically with more timely data, new measurements, and new
analysis capabilities.
Managing the strategy With the measurements shown on the balanced
scorecard, the organization can respond to those objectives that have not been
achieved and reinforce those that have been achieved. For example, if
the percentage of population on the congestive heart failure critical pathway is
decreasing, the team can work with the clinical staff to identify and rectify the
root cause of this problem.
Refining and reusing After evaluating its first attempt at the balanced
scorecard approach and refining its methodology where necessary, the team can
add new corporate strategies to the balanced scorecard.
In the process of building a balanced scorecard, it is essential to define
appropriate measurement architecture with the following steps:
• selection of an appropriate organizational unit
• identification of SBU/Corporate linkages
• build confidence on strategic objectives through interviews
• synthesize the feedback from interviews and make it available to decision
makers and the top management
• hold an executive workshop to assign responsibility to individual executives
• conduct sub-group meetings for dissemination down the line
• select and design measures in aspects relating to core financial measures,
core customer measures, core learning and growth measures

46
• build the implementation plan after discussion, with time frame for each
activity
Balanced Scorecard—Strategic Initiative
The balanced scorecard, which was originally meant to be an accurate
performance measurement system, was subsequently used by researchers for
achieving the following:
Strategy clarification A balanced scorecard helps in the conversion of
strategic objectives at organizational levels into quantifiable measures for the
members of the management and in the process helps in the development of
consensus among the management team.
Communication of strategic objectives A balanced scorecard can be
utilized for converting the macro objectives into operational objectives and to
communicate them to the employees across the organization.
Planning and aligning strategic initiatives The organizational objectives are aligned
with the department and group/team levels seamlessly across the organization.
Learning from feedback The management and the other members obtain
feedback on implementation of strategy vis-a-vis the plan. Based on the
feedback they evolve or modify the strategy for its successful
implementation through the double-loop learning.
HRD audit is not intended to be originally an OD tool. By virtue of its
diagnostic and participative methodology it seems to work as a change
management tool. The interview methodology, its comprehensiveness,
the audit methodology insisting on starting and ending with top
management involvement all have high potential for initiating change
processes. It could be further refined as an OD tool. It involves all the
HRD staff and a large number of managers in the audit process and
makes them conscious of the areas needing improvements. HRD audit
is needed for realigning and rejuvenating the HR function in any
company. Increasingly this is likely to gain movement and be come a
good self renewal tool for the HR function.
In the foreword David Norton, author of Balanced Score Card,
makes some very interesting comments. Norton says that he has
worked with about 200 companies to design Balanced score cards.
These designs always start with the same question—"What is your
strategy" Norton says that what struck him most is—while most com-
panies have awareness of good financial strategies and operational
strategies, they have extremely limited understanding of strategies for
developing human capital (HRD strategies)
"There is little consensus, creativity, and no real framework for
thinking about this subject. Worse, we have seen little improvement in
this over the past eight years".
HRD audit and HRD score card of TVRLS precisely aims at pro-
moting what the firms lack in their awareness of HRD and its value
addition to firm's success.
1. The authors remark in the early part of this chapter that if the HR
function cannot show that it adds value. It risks being outsourced.
The authors argue that there is nothing wrong being outsourced as it
saves costs for the firm. However it denies and opportunity for the

47
 company to utilize its human capital and runs the risk of wasting
potential of a function.
2. The authors argue that the differences in market value of any
company are largely reflections of the nature of intellectual it has.
When you take the examples of two firms one having double the
market value of the other most often the explanation is to be found
in the intellectual capital including the firm ahs created.
3. The authors illustrate with an example of how a CEO of a company
when asked how his HR is helping him build the market, capital
replied: This is business and not HR". They have innovative HR
systems but they are not perceived as linked to business.
That is how in the past HR is not seen as a part of the strategy. As a
result firms have lost an opportunity build intellectual capital. HR people
have not helped in recognizing this, they are busy innovating
4. The Sears story quoted by the authors illustrates how HR if aligned with
strategy will boost the performance of a company.
When Sears was incurring losses in billions in early nineties its
reorganization involved making it a compelling place to shop. To make it
a compelling place to shop they had to make it a compelling place to
work. Through an effective implementation of the vision, effective
measurement systems and monitoring they have been able to bring a big
turn around in the company.
They developed objective measures for each of the three compelling.
For example support for ideas and innovations helped Sears establish as
a compelling place to work. Similarly focusing on making Sears a fun
place to shop it became a compelling place to shop. The team identified
behavioral objectives and competencies needed by employees to
accomplish these goals. They created a Sears University and changed
their recruitment, job design, performance management etc. and aligned
them with strategy.
5. HR's emerging strategic potential hinges on the increasingly central role
played by intangible assets and intellectual capital in today's economy.
Some of the points made by the authors in this section of the book are
summarised below:
• Intangible assets generate tangible benefits
• Managing intangible assets requires different skill sets than managing
tangible assets.
• Tangible assets are readily visible. Easily quantified, easily
measurable. Part of the balance sheet, investments produce known
returns, is easily duplicated, managed with scarce mentality, leveraged
through control. Can be leveraged though control. Can be stored and
accumulated.
• Intangible assets are invisible. Difficult to quantify, not traced through
accounting, assessment is based on assumptions, appreciate with
purposeful use, has multiple applications without value reduction, best
managed with abundance mentality, best leveraged through alignment,
dynamic and short shelf life when not sued.

48
• In the US the ratio of the market value of the firms have doubled than
the book value based on intangible assets. Financial analysts have
begun to therefore look for such assets.
• It is here the HR function can make the lives easy by demonstrating the
value of intangible assets. Measurement of intangible assets will
perhaps provide and answers to linking HR with strategy
• The authors list the following as some of the intangible assets listed or
used by the financial analysts
• Execution of corporate strategy (Execution ability)
• Management credibility
• Quality of corporate strategy
• Innovation
• Ability to attract and retain talented people
• Market share
• Management expertise
• Alignment of compensation with share holders
• Research leadership
• If the current measures cannot give the HR professionals the
measurement tools they need, they have to develop their won ways of
demonstrating their contributions to firm performance
• The first step is to discard the accounting mentality that treats HR as a
cost center and minimizing the costs as a primary indicator of success
• The architecture of HR consists of (i) the function, (ii) the system and
(iii) the employee behaviors
• The authors point out also the two separate HRMs: The Technical
HRM which deals with the delivery of HR basics such as recruitment,
compensation etc. and the Strategic HRM which includes the those
services that support the implementation of the firm's strategy
• In a study of 300 firms Huselid and others have found that the
technical proficiency was 35% higher than the strategic proficiency of
HR professionals. They particularly were deficient in translating the
firms strategy into operational and HR goals and subsequently
implement these.

49
 • The authors of this book go on to advocate what they call as the High
Performance Work System (HPWS) in the book and the entire book of
HR Score Card is based on this approach.
• In HPWS each element of the HR system is designed to enhance the
overall quality of the human capital throughout the organization.
• HPWS does the following:
• Links selection an/l promotion decisions to validated competency models
• Develops strategies that provide timely and effective support for the
skills demanded by the firm's strategy implementation
• Enacts compensation and performance management policies that attract,
retain and motivate high performance employees
In short for HR to create value, needs to structure each of its HR systems
Ina way that relentlessly emphasizes supports and reinforces a high
performance workforce.
The chapter concludes by pointing out that the HR practices of high
performing organizations differ substantially from those of the low
performing organizations. The following are the characteristic of high
performing organizations as compared to the low performing organizations:

50
Research Study and Analysis

A human resource audit is like deboning a fish. A HR audit provides an

organization with a method of getting a clear picture of the overall status of an
organization and also evaluates whether certain systems are yielding the desired
results. HR audit also detect lapses in processes and identify reasons for the
same. Every company plans certain processes and systems, and sets up targets
for such systems. AN HR audit compares the results of the implementation to
the preset targets. A healthy HR function is as important to an organization as
mental well-being for a human being.

The project covered in the report was focussed on a Human Resource Audit at
Kaizen Leisure and Holidays, the travelling agency of Peerless. The very first
introduction of the project was given by Mr. Premankur Bhattacharya, Deputy
General Manager, Human Resource, Peerless Smart Financial Solutions.
As the company was originated as Minnie Pan Travels and then taken over by
Peerless and renamed as Kaizen Leisure and Holidays, most of the personnel
documents of the employees were missing. These documents included Age
Proof certificate, appointment letter, curriculum vitae, confirmation letter etc.
Even passport size photographs of all the employees were not present. Another
important problem of this small eighteen member company was with their
system leaves.
The research work conducted first identified the reasons behind the requirement
of these data and then the reasons why the same was missing

51
Documents Studied

Bio-Data

The bio-data contains all the officially required information of a candidate and
is a vital document. A proper bio data is always required when one applies for a
new organization. But another important thing is the photograph, which is
normally presented along with the bio data. It serves as a physical identification
for the employee.

Appointment Letter

Appointment letter serves as a proof that one is selected to work in the

organization. The importance of appointment letter lies in the fact that it
contains all the rules and regulations of the organization that the employee is
supposed to follow. It also contains the expected date of joining of the
candidate. The retirement age is also usually mentioned in the appointment
letter. It is a formal agreement in writing for the terms of employment between
the employee and organization.

Joining Letter
Joining letter is the one that is given by the candidate to the organization
confirming his/her joining and the date of joining. After the candidate joins, and
after completion of the probationary period, he/she gets the Confirmation Letter,
which is also a vital document. It is the confirmation that the employee is
permanent now and not temporary.

Confirmation Letter
Confirmation Letter is given by the company itself. It is the confirmation that
the employee has become permanent in the organization. Confirmation letter is
achieved after the satisfactory completion of the probationary period which
depends upon organization to organization. Some organizations follow six
months of probationary period. As far as Kaizen Leisure and Holiday is
concerned, they follow probationary period of six months. If the service of the
employee is not found satisfactory, the probationary period is extended, and
thus the employee gets the confirmation letter only after the proper completion
of the same.

52
Promotion Letter
Promotion Letter is also an important aspect of an organization, both for the
employee and the employer. It is the official letter given to the employee mainly
to inform him about the change of his position in the organization. It acts as an
enthusiasm booster for the employee – a formal record of a realized reward. The
promotion letter includes the present designation and the raised designation, as
well as the date of implementation. It also acts as a record keeping for future
reference. Designation in an organization is important because it helps in
distinguishing different posts and different roles of different employees in a
multi-tasking organization.

Pay fixation Letter

Pay fixation Letter is yet another important letter provided by the organization
to its employees, informing about the changes in the payment. Mainly it is done
for pay increment. In most of the cases, it is accompanied by the promotion
letter, even if not so, the periodic increase in payment is informed by the pay
fixation letter.
All the personnel files and folders of the employees of the company must be
well maintained with each and every important document. As there was a
problem with this in Kaizen Leisure and Holidays, the HR audit was conducted
to rectify it and put the company‘s HR function in a proper line.

Processes and Systems Studied

Leave Systems

Leaves come as a breath of refreshing air to the hectic daily schedule of an

employee. It is also looked as a reward for an employee loyal service to the
company. There are different kinds of leaves for different organizations and
different rules and regulations pertaining to them also.
Privilege Leaves: It is affixed amount of leave that a person can take within a
year. It cannot be increased or decreased. It is fixed since a person joins an
organization. It can be accumulated as well as encashed after a year. But
accumulation and encashment also have some rules associated with it. This type
of Leave must be granted with prior approval of the appropriate sanctioning
authority or Departmental Head and should be processed through HR
department so that the Leave record of each employee can be maintained and
updated.
Casual Leaves: They can be considered as accidental leaves. When any leave is
required urgently without any prior preparation, Casual Leave is encouraged.

53
But notice should be given if it is taken for more than one day. They can‘t be
accumulated nor can they be encashed.
Sick Leaves: Sick Leave is taken when the employee is physically not fit.
Normally, a medical certificate is required for granting of these leaves. They
may be accumulated and en-cashed based on the organization. This leave rule
varies from one organization to another.
It is very important that all the rules and regulations of the organization be
uniform for each and every employee, specially rules regarding leaves, there
accumulation and encashment. Only then the employees will feel being treated
equally by the company. An unequal leave system at the same designation
creates dissatisfaction among employees and proves as a de-motivational factor.

Performance Appraisal
Performance Appraisal is a part of career development. Performance Appraisal
is the process by which the job performance of the employees is evaluated. That
is why sometimes it is called ‗Employee Appraisal‘. They are regular reviews of
the employee performance in the organizations. During this evaluation, certain
terms like quality, quantity, cost and item are generally kept in mind.
Generally, performance appraisal is done keeping in mind few objectives.

Following can be few aims of performance appraisal:

 Giving feedback regarding the performance of the employee
 Identifying when and where there is a need of training for the employee
 Salary increase, promotion or any disciplinary action should be taken or
not, to encourage or discourage prior employee behaviour
 Document criteria used to allocate organizational reward
 Organizational diagnosis and development
 Acts as a bridge of communication between staffs and administration
 Validate selection techniques and human resource policies to meet federal
equal employment opportunity requirements

There are several processes of performance appraisal as indicated below

Scalar System: One of the common approaches is the numerical or scalar rating
system. Here, managers score the employees against a number of objectives or
attributes.

54
360º Performance Appraisal: There is another method where assessment is done
by managers, peers, subordinates, customers, even self assessment is included.
This method is known as 360 degree performance appraisal. An advantage of
this method is that it creates a good communication pattern.

The most popular Performance Appraisal methods are considered to be the

following:
 Management by objectives
 360 degree appraisal
 Behavioural observation scale
 Behaviourally anchored ratting scale

There is another system which is highly based on integrity and

conscientiousness, and is commonly used by business. That system is known as
Trait Based System. But according to the scientific literature, it is not correct to
access employees by these two factors. There are two major reasons for this:
Because trait based systems are by definition based on personality traits, they
make it difficult for a manager to provide feedback that can cause
1. Positive change in employee performance. This is caused by the fact that
personality dimensions are for the most part static, and while an
employee can change a specific behaviour they cannot change their
personality. For example, a person who lacks integrity may stop lying to a

55
 manager because they have been caught, but they still have low integrity
and are likely to lie again when the threat of being caught is gone.

2. Trait Based Systems, because they are vague, are more easily influenced
by office politics, causing them to be less reliable as a source of
information on an employee's true performance. The vagueness of these
instruments allows managers to fill them out based on who they want
to/feel should get a raise, rather than basing scores on specific behaviours
employees should/should not be engaging in. These systems are also
more likely to leave a company open to discrimination claims because a
manager can make biased decisions without having to back them up with
specific behavioural information.

Often a subordinate's first performance appraisal may occur at the end of a

probationary period, anywhere from 30 to 90 days after their start date. It may
be informal or formal, documented or undocumented, scheduled or
unscheduled. The point is this review, as well as those to follow, have the
potential to be the most meaningful opportunities managers have to provide
information; subordinates can use to improve their performance.
Whatever be the method of performance appraisal, the basic process always
remains the same. The very first thing is to set up a standard, according to which
the employees will be judged. By this process, employees can be judged as
successful or unsuccessful or accordingly, what was their contribution to the
organization keeping in view the goals and objectives. The standards set should
be clear, easily understandable and in measurable terms. In case the
standardization is not proper, the performance appraisal will not be effective.
Now, once the standards of the organization are set, it is the responsibility of the
administration to declare and let every employee know about the standards
being set. This will make them understand their roles properly and they will be
clear of the fact that what the organization exactly wants them to do. As
knowing about the standards about the organization is important for the
employees, it is also important that the standards are clear to the evaluators or
the appraisers. If any changes are to be made, those should be made right at the
very beginning. And these changes are done mainly by the feedback from the
employers to the evaluators.

The entire performance appraisal process can be put forward by the following
flow diagram:

56
Flowchart of Performance Appraisal Process

The toughest part of performance appraisal is measuring the actual performance

of the employee. It is measured by the actual task the employee has performed
in a given period of time. It is a continuous process and done by monitoring the
performances throughout. In this stage, choosing the correct measuring
techniques is very important. It should also be kept in mind that personal
biasness should not create any hindrance to the process.
Now, the next step is to compare the actual performance with the desired
performance or the standardized performance. This comparison tells about the
deviation in the employees work from the desired work. This can again be of
two types. The actual performance can be better than the standardized
performance, providing a positive result, or the actual performance can be less
than the desired performance, resulting in negative result. It includes recalling,
evaluating and analysis of data related to the employees‘ performance.
The result of the appraisal is communicated to the employees and then
discussed as one to one basis. The major focus of this discussion is the proper
communication and listening. During this discussion, the problems, the results
and the possible solutions are discussed. The main aim is problem solving and
consensus. It should be kept in mind that whatever be the feedback, it should

57
always be given with a positive attitude because this affects the future
performance of the employees. The man purpose of the meeting should be to
discuss the problems and find out the practical and effective solutions, so that
the employee performs better the next time.
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions,
or the related HR decisions like rewards, promotions, demotions, transfers etc.

Performance Appraisal at Kaizen Leisure and Holidays

Different organizations follow different methods of Performance Appraisal.

Similarly, the studied organization, i.e. Kaizen Leisure and Holidays have two
different employee appraisal methods.
At the very onset, total employees are divided into two groups:

For Executives or Supervisors, the method that is followed is Questionnaire and

Rating Method. At first a form is filled up by the appraisee. That includes few
questions and few ratings. The appraisee needs to answer and rate them
according to their thinking. And after submission of it, a one to one interview
takes place with the appraisal:
Questionnaire

1. Lists areas of major accountability.

2. What were your 3 main goals for the period under review?
3. To what extend were you able to achieve the above?
4. What constraints did you encounter in achieving your goals?
5. How can your manager assist you in achieving your goal?
6. Do you want additional responsibility at this point in time?

After this questionnaire, the rating method is done in the following questions:

58
 1. Job knowledge / professional competence
2. Productivity
3. Achieving given targets
4. Revenue enhancement
5. Cost control
6. Decision making and judgment
7. Problem solving ability
8. Client handling
9. Subordinate handling
10.Communication skill
11.Team work
12.Self-motivation
13.Initiative
14.Desire for responsibility
15.Attitude and co-operation
16.Dependability

And the appraiser rates themselves in the above criteria as A, B or C. Then the
last question that is asked is whether they are keen to take any more
responsibility.
As far as the sub – staff appraisal is concerned; the appraiser rates or points the
appraisee in the appraisal form. Then after that, the appraisee has to answer in
front of the appraisal committee. The pointing is done by 15, 10, 5, and -5. This
method of performance appraisal is known as Pointing Method. The pointing is
done in the following questions:

59
I. Discipline

1. Attendance
During this period your attendance has been
(a) Over 95%
(b) 90% - 95%
(c) 80% - 90%
(d) Below 80%
[15, 10, 5, -5]

2. Punctuality
(a) You are consistently found present at the work place as per duty
schedule.
(b) You sometimes leave early / report late but with prior permission.
(c) You sometimes leave early / report late but without prior permission.
(d) You consistently report late to / leave early from the work place.
[15, 10, 5, -5]

3. Grooming
(a) You are consistently well groomed as per grooming standards
communicated.
(b) You are satisfactorily groomed, however need to improve on
_______________
(c) You are well groomed; require improvement in _______________,
_____________ and _________________.
(d) Poor grooming standards.
[10, 5, 0, -5]

60
II. Technological

1. Knowledge
(a) Your job knowledge exceeds expectations.
(b) You have adequate job knowledge.
(c) You have a fair amount of knowledge, require specific inputs in
_______________.
(d) Your job knowledge is inadequate, needs improvement in all major areas.
[10, 5, 0, -5]

2. Skill
(a) You are quick and efficient in performing specialized and routine tasks.
(b) You are efficient in performing most specialized and routine tasks need
to improve speed.
(c) You are particularly need to improve skills in ___________________.
(d) You need extensive inputs and practice in performing specialized tasks.
[20, 10, 5, -5]

3. Quality of results produced

(a) You consistently produce accurate, through neat work; always adhere to
deadlines.
(b) You usually meet prescribed standards and deadlines in work.
(c) Your work is usually acceptable, requires occasional supervision and
reminders on deadlines.
(d) You are slipshod in work, ignorant of deadlines; work often requires re-
doings.
[20, 10, 5, -5]

III. Attitude

1. Initiative
(a) You are self-starter, eager to perform tasks and take on new
responsibility.
(b) You occasionally take initiative and show interest I performing new
tasks.
(c) You complete assigned tasks, wait for new tasks to be ‗handed down‘.
(d) You feel burdened with tasks, need to be guided / prodded.
[10, 5, 0, -5]

61
 2. Team Work
(a) You co-operate and co-ordinate well with the team, are willing to accept
different points of views without comprising on quality and quantity of
the job.
(b) You co-operate all times but lack in communication skills.
(c) You are willing to co-operate as long as personal view points are not
challenged.
(d) You co-operate grudgingly, quarrel and are argumentative.
[15, 10, 5,-5]

3. Attitude towards seniors

(a) You show respect and feel accountable towards seniors.
(b) You show respect but sometimes tend to question their authority
unreasonable.
(c) You show lack of respect towards your seniors and their authority.
(d) You are defiant, insubordinate and indifferent towards seniors.
[15, 10, 5, -5]

4. Leadership
(a) You accept responsibility, display potential, judgment and
resourcefulness in getting tasks accomplished consistently.
(b) You are fairly adapt at getting work done but require some amount of
guidance.
(c) You are self-motivated but are unable to generate group effort.
(d) You have low ability to accomplish results through people.
[10, 5, 0, -5]

5. Commitment to work
(a) You are conscientious in your approach to work, duties and
responsibilities.
(b) You keep good schedule of work / stick to workplace quality and time
criteria.
(c) You need reminding from time to time, eager to improve.
(d) You are indifferent, waste time and leave the place of work at intervals.
[15, 10, 5, -5]

6. Commitment to training
(a) You show keen interest in learning and apply well, knowledge attained
on a continuous basis.

62
 (b) You are keen on self-development but application in operations is
limited.
(c) You are eager to learn but are not self-motivated.
(d) You show little interest in training and increasing knowledge.
[15, 10, 5, -5]

7. Cost consciousness
(a) You take initiative in monitoring and reducing costs in table allotted.
(b) You show a fair degree of cost consciousness only in tasks allotted.
(c) You require guidance and control in cost consciousness.
(d) You are not concerned about costs.
[15, 10, 5, -5]

8. Safety consciousness
(a) You take initiative with colleagues and team in adopting consistent and
regular safety precautions.
(b) You personally adopt consistent and regular safety precautions.
(c) You require supervision to ensure adherence to safety precautions.
(d) You are negligent in following safety precautions.
[15, 10, 5, -5]

Then the total score is counted and compared with 200. At the end, the
percentage is calculated and the employee with higher percentage gets the
higher opportunity for reward or rather promotions.

63
Importance of Performance Appraisals

Performance appraisals have a manifold importance. Some of the importances

of it are:
 It acts as a performance boost to the employees.
 It assures an opportunity for constant rise in salary and promotion for
the desired candidates
 The greed for rewards results to an outstanding performance in many
 It shows the proper and efficient working of the human resource
department.
 During a performance appraisal review, a supervisor and an employee
discuss the employee's strengths and weaknesses. This gives the
employee individual face time with the supervisor and a chance to
address personal concerns.
 Employees need to know when their job duties are being fulfilled and
when there are issues with their work performance. Managers should
schedule this communication on a regular basis.
 Performance appraisals allow employees and supervisors to discuss
goals that must be met to advance within the company. This can
include identifying skills that must be acquired, areas in which one
must improve, and educational courses that must be completed.
 When employees know there will be regularly scheduled evaluations,
they realize that they are accountable for their job performance.
 Besides communicating employees' individual goals, employee
appraisals provide the opportunity for managers to explain
organizational goals and the ways in which employees can participate
in the achievement of those goals.

64
Research Methodology

Primary Research

The first major queries were answered and explained by Mr. Bhattacharya
himself. Then a face to face interview with the Senior Manager Accounts of
Kaizen Leisure and Holidays, Mr. Atish Adhikary helped to clear most of the
doubts. Interviews with different employees of the company like Ms. Amna
Saigal helped to understand the problems and the drawbacks better. Any further
queries about the topic or any doubt about the progress of the project was
always welcomed and sorted out by the faculty members.

Secondary Research

The most important tool of the secondary research for this project was the
personnel files and data of the company. Kaizen Leisure and Holidays provided
all the personnel files and details of each and every employee of the company.
Details about the project and the topic were also gathered from different
websites like google.com, peerless.co.in etc. A major role as the secondary data
supplier was played by the library. Different books provided a lot of knowledge
about the topic and many references, as because theoretical background is
important for any practical work.

Observation

The very first observation is that, only one candidate had the complete
documents arranged properly. It was the first task to collect all the required
information from all the employees. That is why they were provided with the
application blank. Now, application blank is a form where all the required
information is supposed to be filled up. Application Blank include name, date of
birth, place of birth, father‘s or husband‘s name, present and permanent address,
telephone number, post, marital status, educational qualification, other
qualification and training details, hobbies, license, references, etc. After the
application blank is filled up, a remarkable change in the data collection was
seen. It was to be kept in mind that only secondary and higher secondary age

65
proof documents were considered as age proofs, not passport or license
photocopy or anything else.
The following bar diagrams will brief the findings.
Before the audit has been done, the following observation is made:

After the audit, when all the application blank is submitted by all the employees,
the observation turned as the following:

Now, as far as leaves are concerned, the leaves scenario of Kaizen Leisure and
Holidays is fully disturbed. The situation is charted as follows:
The Privileged Leave (P. L.) of many is not mentioned yet. But those P.L. is
mentioned, it is mentioned as 30 days a year.

66
RECOMMENDATION

1) If PL 60 days and Sl 30 days in a year is taken as a standard for leave

accumulation, flowing employees need certain amount of adjustment as
per leave deduction.

a) Mithun Kanti Majumder - PL 180 days SL 120 days.

b) Sudipto Ghosh – PL 180 days SL 120 days.
c) Mithu Das – PL 180 days SL 120 days.
d) Payel Mukherjee – PL 240 days SL 150 days.

2) Proper mention of leave accumulation for the following employees

is required.

a) Jadunath Puhan
b) Manash Roy Chowdhury
c) Debabrata Sarkar
d) Mahendra P. Singh
e) Swapan Kumar Ghosh
f) Mahadeb Das
g) Proloy Kumar Mukherjee
h) Dilip Kumar Bhagat
i) Susanta Dey
j) Srimanta Bag

3) expect for 8 employees whose leave encashment is mentioned as 50%

once in a year provided they have taken 5 days of Pl for the flowing
employees it is still to be mentioned

a) Jadunath Puhan.
b) Mithun Kanti Majumder
c) Debabrata Sarkar
d) Mahendra P. Singh
e) Swpan Kumar Ghosh
f) Mahadeb Das
g) Proloy Kumar Mukherjee
h) Susanta Dey
i) Srimanta Bag

Only because of the lack of proper mention leave encashment, 2 employees

were given 180 days during their retirement which was subject to approval
from higher authority.

67
4) Except 3 employees, whose retirement age is mentioned as 58 days for
the following employees it is still to be mentioned.

a) Jadunath Puhan.
b) Mithun Kanti Majumder
c) Manash Roy Chowdhury
d) Debabrata Sarkar
e) Mahendra P. Singh
f) Swpan Kumar Ghosh
g) Mahadeb Das
h) Proloy Kumar Mukherjee
i) Payel Mukherjee
j) Amna Saigal
k) Sudipta Ghosh
l) Dilip Kumar Bhagat
m) Susanta Dey
n) Mithu Das

5) As per as the performance appraisal is concern it is divided into two parts.

a) Questionnaire and rating method is used for the executive and the
supervisor level. A form is filled up by the appraisee and then a one to
one interview taken as place with the appraiser, where the appraisee is
answerable to all the comments of the form. Following are few of the
things that comes out with this appraisal practice.

Rating

1. Job knowledge / professional competence

2. Productivity
3. Achieving given targets.
4. Revenue enhancement.
5. Cost control.
6. Decision making and judgment.
7. Problem solving ability.
8. Client handling.
9. Subordinate handling.
10. Communication skill.
11. Team work.
12. Self motivation.
13. Initiative

68
 14. Desire for responsibility.
15. Attitude and co-operation.
16. Dependability.

Questionnaire

1. Accountability.
2. What were your 3 main for the period under review?
3. To what extent were you able to achieve the above?
4. What constraints did you encounter in achieving your goals?
5. How can your manager assist you in achieving your goals?

b) The pointing method is applicable for the performance appraisal of

the sub staff. The appraisal (Mr. Atish Adhikari filled the form with
the concern of the appraisee. Then a one to one interview takes place
where the appraiser is answerable to his comments in the
performance appraisal form.

POINTING METHOD

I) Discipline

a) Attendance
During this period your attendance has been:
i) over 95%
ii) 90% - 95%
iii) 80% - 90%
iv) Below 80%

b) Punctuality

i) your are consistently found present at the work place as per duty
schedule.
ii) You sometimes leave early / report late but with prior permission
iii) You sometimes leave early/report take but without prior
permission.
iv) You consistently report late to leave early from the work place.

c) Grooming

69
 i) you are consistently well groomed as per grooming as standard
ii) You are satisfactory groomed, however need to improve on.
iii) You are well groomed, require improvement in.
iv) Poor grooming standards.

II) Technical

a) Knowledge
i) your job knowledge exceeds expectations..
ii) You have adequate jobs knowledge.
iii) You have a fair amount of knowledge require specific inputs in.
iv) Your job knowledge is inadequate needs improvement in all major
areas.

b) Skill
i) You are quick and efficient in performing specialized and routine
tasks.
ii) You are efficient in performing most specialized and routine tasks
need to improve speed.
iii) You need extensive inputs and practise in performing specialized
tasks.

c) Quality of Results produced

i) You consistently produce accurate through and neat work, always

adhere to deadlines.
ii) You usually meet prescribed standards and deadlines in work.
iii) Your work is usually acceptable, requires accessional supervision
and reminders on deadlines.
iv) You are slipshod in work, ignorant of deadlines work often
requires redoing.

III) Attitude

a) Initiative

i) you are self starter, eager to perform tasks and take on new
responsibilities.
ii) You occasionally take initiative and show interest in performing
new tasks.
iii) You complete assigned tasks, wait for new tasks to be handed
down.

70
 iv) You feel burdened with tasks, need to be guided/prodded.

b) Team Work

i) you co-operate and co-ordinate well with the team are willing to
accept different points of view without comprising on quality and
quality of the job.
ii) You co-operate at all times but lake in communication skills.
iii) you are willing to co-operate as long as personal view points are not
challenged.
iv) You co-`operative grudgingly, quarrel and one argumentative.

c) Attitude towards senior

i) you show respect and feel accountable towards seniors.

ii) You show respect but sometimes tend to question their authority.
iii) you show luck of respect towards yours seniors and their
authority.
iv) you one defiant, insubordinate and indifferent towards instructions
from from senior.

d) Leadership
i) you accept responsibility, display potentials, indecent and
resourcefully in getting tasks accomplished, consistently.
ii) You are fairly adept at getting work done but require some amount
of guidance.
iii) you are self motivated but one unable to generate group
effort.
iv) You have low ability to accomplish results through people.

e) Commitment to work

i) you are conscientious in your approach to work. duties and

responsibilities.
ii) you keep good schedule of work / stick to work place quality and
time criteria.
iii) you need reminding from time to time, eager to improve.
v) You are indifferent, waste time and leave the place of work at
intervals.

f) Commitment to training

71
 i) you show keen interest in learning and apply well, knowledge
attained on a continuous basis.
ii) you are keen on self development, but application in
operation is limited.
iii) you are eager to learn but are not self motivated.
iv) You show little interest in training and increasing
knowledge.

g) Cost consciousness

i) you take initiative in monitoring and reducing costs intasks allotted.

ii) you show a fair degree of cost consciousness only in tasks allotted.
iii) You require guidance and control in cost consciousness.
iv) you are not concerned about costs.

h) Safety consciousness

v) You take initiative with collegues and team in adopting consistent and
regular safety precautions
ii) You personally adopt consistent and regular safety.
e) You require supervision to ensure adherence to safety
precautions.
vi) You are negligent in following safety precautions.

72
HUMAN RESOURCE REPORT

The recent kaizen report depicts the following.

1) 94.44% application blank have been submitted till date.

2) 100% Photograph are present.

3) 50% school certificate of employees are present.

4) 66.67% of qualification certificate is present.

5) 16.67% has their written retirement age mentioned.

6) 94.44% date of birth is mentioned.

83.33% date of joining is mentioned.

7) Appointment letter of 77.78% of employees is there.

8) As per of the promotion is considered 38.89% of employee got promoted

under kaizen among which 22.22% of employees have their promotion
letter along with their pay fixation letter.
11.11% employees are under deputation and 16.67% are still under their
probationary period.

9) 100% pay fixation letter is present.

10) 22.23% joining letter is present.

11) 16.67% employees have their confirmation letter where as another

16.67% employees are not applicable.

12) 88.89% CV is present.

13) 44.44% of employees have mentioned leave of 30 days of PL in a

year 55.56% of employees are having 10days of CL in a year among
which 11.11% of employees is mentioned to take a maximum of 3 days

73
 of CL at a time. 44.44% of employees are having their SL as 15 days a
year.

14) As per leave accumulation is concern 22.22% of employees have

60 days of PL and 30 days of SL in a year, 16.67% have 240days of PL
and 50 days of SL in a year and the other 5.56% of employees have 30
days of PL and 180 days of SL.

15) 44.44% of employees are having their mentioned leave encashment

as 50% once in year provided PL of 5 days are taken.

74
Bibliography

1. V.S.P. RAO

2. Aswathapa

3. Memoria

4. www.peerless.co.in

75
Annexure :

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