Personal Management

02 Sep


What motivates a person to perform is the focus of this chapter. Motivation in the context of organization refers to the willingness of an employee to respond to organizational requirements. All the significant content theories of motivation (Maslaw’s Need Hierarchy Theory, McGregors Theory X and Theory Y and Herzberg’s Motivation—Hygiene Theory) as well as process theories of motivation (McClellands Need Theories, Goal Setting Theory, Expectancy Theory and Equity Theory) are reviewed. Some of the recent attempts in motivating employees like job enrichment, quality circles, work redesign, flexitime and work democratization are discussed. The chapter raises some issues concerning money as motivator and takes a closer look at motivation—productivity linkage.


1. Briefly discuss the importance of motivation to organizations.

2. Study an organization, unit, or an individual employee and suggest ways and means to motivate him to perform more effectively.



1. Manpower Planning: The manpower requirement on the generation side is determined by the design of the plant and the operating requirements. Therefore, as and when new plants are due for commissioning, the requirement of staff is worked out in consultation with the A & P Department. Past experience and redeployment of existing staff is taken care of as a part of this exercise. The requirement of staff on the distribution and customers side is determined similarly from time to time. For the sanction of additional manpower and also in some cases for justifying the existing manpower, the services of the industrial engineers are used. There are 2 industrial engineers who form the O & M (Organization & Method) Cell in the Corporate A & P Department.

2. Recruitment and Selection: Some of the job titles in the Company are by practice classified as recruitment posts. Recruitment to such categories is done through open advertisements in the newspapers, from the apprentices of the company or through the employment exchange. Written and oral tests are conducted in the selection procedure. For all technical positions, practical tests are also conducted. Candidates who pass all the three tests are considered successful. Marginal relaxation is made in the requirement of qualifications (only percentage of marks) and age is given to the children of ex-employees if no other child of the said employee is in employment with the company. Special cases of recruitment arise in case of the premature retirement of employees on medical grounds or death of an employee while in service with the company or an employee meeting with a fatal accident while on the job.

The induction of any new employee in the company is a part of the responsibility of the unit’s Personnel Officer jointly with the Line Officer, in whose section the new employee has been appointed. In case of Management Trainees, the respective corporate departments take care of their induction. As part of this induction, the Management trainees are taken to each department of the Company where they are introduced to the officers concerned and briefed about the functions of each respective department.

Promotions are based on the criteria of seniority and merit. Promotions are department-wise. As and when a promotional vacancy occurs in any department, the said post is notified on the notice boards of the respective department after approval of the corporate A&P Department and applications from eligible employees are invited. The eligible employees are then tested. The test consists of written, practical and oral tests and the employee must pass all the three tests in order to qualify for promotion. The seniormost among the employees who pass is then promoted.

In almost all the technical as well as administrative categories vacancies exist from the very basic level right up to the highest category among the employees. There are seven levels among the unionized categories of the employees A, B, C, D, E, F1 and F2. Very few positions beyond Scale D are filled in by direct recruitment. Again, Also to the recruitment positions employees within the Company, if they qualify, are given an opportunity and suitably promoted if they pass the tests. Even among the lowest unskilled categories, e.g., labourers, peons, safaikamdars, at least one opening in the higher scale exists. Therefore, it is possible that an employee joining the company at the lowest level as a laborer could acquire additional qualifications or suitable experience and be recruited or taken in Scale D after which he has ample opportunity for further promotions. To help such employees who are not successful in the promotion process, the Company also has a policy of elevating the employees. Employees who have completed 12 years in a particular scale or 9 years in the scale and have also reached the ceiling of the scale are, given an opportunity for rising to the next higher scale. Such an opportunity is given only once during the entire career of the employee. An employee on rising thus, will become eligible for a higher salary without any change in his job responsibilities and designation.

3. Human Resource Development (1) Recruitment at lowest level and thereafter career growth from within. An ITI qualified candidate recruited as a skilled employee can rise up to supervisory level. A candidate recruited as a Supervisor can become an Officer and a candidate recruited as a first Level Officer can rise to the position of the General Manager. Some of the General Managers in the Company today were initially recruited as Graduate Trainees. Also candidates recruited as peons can rise up to semi-supervisory or supervisory jobs.

Lifetime employment and nil employee turnovers: The A & P Department, at the corporate level sets down the policies and rules in all personnel matters. Most of these administrative activities are therefore decentralized at the personnel unit in departments. The corporate department is approached only if there are specific queries or clarification. All recruitment is centralized, which is very important function that is looked after in the Corporate A & P Department. Also, all matters which go in for litigations are centrally attended to by the Corporate A & P Department.

The nature of relationship between the Personnel Department at the corporate level and those in all the different departments is of a ‘team approach’, where the Corporate A&P Department frames policies based on feedback and requirement. The corporate A&P Department also functions as a guide. Very important, the unit personnel officers also liaison between the Corporate A&P Department and the respective units of their posting in all functions attached to the A&P Department. (Source: Company documents.)


1. The number of consumers is projected to increase by 2000 every month. What would be the requirement for the following categories:

a. bill distributors;

b. meter readers;

c. estimators; and

d. inspectors?

2. Given urbanization, leading to houses and buildings like apartments for consumers, with personalized transport like two wheelers for meter readers, can you refix the norms for the Categories in 1 above taking into account an increase in productivity. What other factors need to be balanced against this increase in productivity? (Specify your group productivity increase and other factors.)

3. Propose a revised organization structure at the zonal office, where the company feels that with existing manpower more consumers have to be serviced (the Naranpura area is in a high population growth zone).



Welfare implies providing better work conditions, reasonable amenities (such as drinking water, toilet, rest rooms and rest pauses etc) and services beyond job such as recreation, housing, education etc.). In India the concept of welfare can be divided into statutory welfare (that which is required by law) and non, statutory welfare (that which is undertaken voluntarily by the employees). Because of union pushfulness as well paternalistic altitude of management, a large number of non statutory facilities are available to workers. Management has provided them with the hope that these would lead to satisfaction with the organization which in turn would help in improving productivity. However it is debated whether such a linkage really works in reality.

The Personnel Manager of Roshans Limited has received an application for the introduction of company conveyance for employees staying in town. Although Roshans Limited has provided living facilities to its employees, about 60 per cent of its 1,000 employees still have to commute an average of 10 km to come to work. The union and some of the employees living on campus have supported the demand. Though the management might favour such a move some section of the workforce are concerned that the introduction of company conveyance facility may cut down their wages. The company under disguise of compensation allowance pays Rs. 20 per month for traveling to employees staying more than 8 km away from company premises.

1. What factors would you take into account in evaluating this demand from the workers?

2. Provide the rationale for implementing or not implementing this demand.



Personnel research is an important activity of personnel manager. It helps in reviewing existing personnel policies and developing more effective systems. It also helps in anticipating personnel problems and building up existing body of knowledge. Research has the advantage of being systematic, objective and purposive. Personnel manager can conduct research by using a number of methods. He/She can choose from such methods as case studies, historical studies, survey research, exploratory studies, experimental studies etc., depending upon the objective of the research. No matter what methods is chosen the process of research involves statements of purpose, problem, methods and procedures results and implications.

1. Identify a personnel problem that has to be solved. This can be done by discussions with the personnel manager of an organization. Write a detailed proposal of how you would carry out the research to find the answer.



The present day business corporation functions in an environment where demands on it emanate from several groups. This has, to a considerable extent, resulted from a changed social environment and value system in the community. The realization of the social responsibility of business has spread down to the retail level today.

Profits are a useful index to measure the efficiency of an enterprise. Internal social responsibilities do not consist merely of the provision of a job and the attendant welfare measures as deemed by legislation. India has a very comprehensive set of labor legislations which take into account a wide range of factors—the various types and kinds of industries, the capacities of these units to incur welfare expenditure and the basic needs of the workforce given their socio-economic background. Legislations provide the foundation and the base, but in many cases, employers do not even adhere to this level. Of course, legislations do not cover workers in the disorganized sector. Wages and discipline are but a part of the employee’s life in an organization. The employer has centain responsibilities towards his employee. In turn, the employee is also equally responsible for behaving in a responsible and concerned manner.


1. Discuss the concept of social responsibility. Why should and enterprise be concerned with it?

2. How have some firms in India gone about discharging their social responsibilities? What other approaches can be tried? Give reasons.

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