MOTIVATION

Introduction:

The word motivation comes from a Latin word ‘ MOVERE’-to move. That means motivation makes human being move or do things the way they do, or behave the way they behave. Different people use the term ‘Motivation’ in different ways. Some consider it an art of manipulating human behavior and some as psychological exploitation. When one fails to achieve the objective, or does not perform properly we use the word in a casual manner ‘just motivate him, ‘take care’ he will do the job. Some persons consider motivation a dose for rejuvenating and charging employees to perform. They consider that there will be instant and positive impact on the performance when one talks good or when one is given feel good feeling. We have to understand that multiple factors contribute in motivating an individual.
Motivation is not a simple concept. It is difficult to understand the urge behind behaviour. It is basically a psychological process. Since it is a process, we cannot see it. What we see is the behaviour.
In any organization leave aside machines; it is the human force, which does the job. Management is Managing men tactfully. The question is why to manage men? The reason is that we want them to perform. One of the oldest definitions of Management is to get the work done. For getting the work done we have not only to administer people but have also to manage them tactfully. To manage men tactfully, we must know the psychology of human behaviour.
According to Frank Tarkenton consultant and former PRO football Player “ People don’t change their behaviour unless it makes a difference for them to do so.”
Why do we work?
A person cannot remain ideal either he is working or his faculties are. Remaining ideal is not rewarding. Inactivity has no place in the society. Inactivity is not the part of activity. Work plays significant part in human development and fulfillment. Different people work for different reason. Most of us would say that we work in order to acquire the resources needed first for survival and then for enjoyment. People work to fulfill their needs and desires. Without desire no action springs up. When we want a person to perform, we need to arouse his desire for that act. And how we do it? We lure him, encourage him, force him and even threaten him. The whole purpose is to arouse his instinct to perform. We give him positive strokes; positive feedback to encourage and some times discard him. The whole purpose is to get out put and results. When one works willingly, he has more energy. Will brings energy. Motivated people work well, because the will to work is from within the person.
Needs:
People work to satisfy their needs. They take interest so long their needs are fulfilled. Needs are of various types, basic, social, security, recognition etc. They differ from person to person; hence behavour pattern varies with the individual. Needs are not static they change from time to time.
We do not know the source of need or desire but we see the action for fulfilling the desire.
Motive:
A motive is a felt need or desire. Behind every need there is a motive - a purpose. Motives are needs, which are directed towards a goal. It is a drive or impulse within an individual that goads him into action. All our actions, behaviour are governed by some motive. The needs or desire arise in mind. Hence it is the motive, which is most important. Motives cannot be seen. However, motivated behaviour can be observed. Motive directs or channelises behavior towards goals. Behaviour is goal oriented. It is series of activities depending on the motives. We make inferences about motives by observing behaviour. We cannot see pain, but can observe pain by behaviour of person.
The strength of motives depends on whether it is satisfied or not. Its strength decreases if it is either satisfied or blocked from satisfaction. An individual is not always consciously aware of every thing he wants; hence much of his behaviour is affected by subconscious motives of need. The configuration of one’s motives is complex. They change over time and are influenced by environmental conditions
Desire:
Mind consists of a succession of thought waves. From these mental waves arises desire. Desire is for what is not attained. Our thought and behaviour are governed by our desire. Behaviour is controlled by the motives or need and is predominantly self centered and selfish. The desire transforms itself into will and works through the gross instrument - the body. Motive makes mind to think and nature works. Needs and desires are primary forces determining the focus of our thoughts, feelings and behaviour and directing the way our mind works.
Desire is the very fabric of man’s mind, like the threads of a cloth. It is an emotion that disturbs the mind till it is fulfilled. Desires direct the flow of energy. It propels mind towards the object. The aim is gratification. Without desire activity is impossible. The more we act in a field, our desire in that field increases. Man works to accomplish the desire that is most strong with him. There is no action without desire. Impelled by desire, we engage in action. Desires are unlimited, endless and infinite but the power of fulfillment varies. Thus some one is more successful than others in life. Desires are inter-linked and increase in geometrical progression. The peculiarity of desire is that as soon as one is satisfied other crops up. However, its fulfillment is limited. Since desires are unlimited, the quest to work continues. Wants are multiplying all the time. In economic language desire is the need and greed. Human needs can be satisfied but not human greed. Our desires are constantly changing. What we would prize today we may reject tomorrow.
What is Motivation? :
The word Motivation is the blending of two words ‘Motive’ and ‘Action’. Hence motivation is motivated action. When an action is performed with some motive or purpose, we call it motivated action. Actions are the expressions of thoughts and disturbances in mind caused by desire. As our desire, so our thoughts, as our thought, so our action and behaviour. Motivation is that aspect which energizes a person to perform better. It is self-propelling zeal. When an individual has some motive he takes interest and tries to do the work better. Motivation is an inner desire to make effort. It is the mechanism inside the person and incentives externally that propels activity. It is a factor or force that helps to explain human behaviour. All motivation comes from emotion and feeling, not from intellect.
Every action comes because of its impulse. Higher motivation comes from a particular source. It is doing more than what one is suppose to.
People do what they want to do or otherwise motivated to do. They must be motivated or driven to it, either by themselves or through external stimulus.
Motivation at the work place:
While people join and work in an organization to satisfy their needs, the organization needs people to carry out their activities. Both are mutually interdependent. Motivation is to create an environment or condition on the job that a worker acting to attain personal goals acts in such a way that the work desired by the organization gets done. The factors, which stimulate an individual to direct his actions, behaviour, and mental states to achieve the goal / target, are known as Motivation.
Motivational behaviour is not only influenced by the personal characteristics of an individual but also by the various conditions prevalent in the organisation. Complex forces in an organization intensify the desire and willingness of a person to use his potentialities for achieving organizational objectives.
When we see a person doing his job vigorously with energy and arduously, we consider him to be highly motivated. There is a general feeling that a satisfied worker works hard and a dissatisfied worker hardly works. He shirks responsibilities. The psychology of motivation is an important field of knowledge. It has been difficult to explain why individuals show a positive attribute in a particular set of circumstances and negative attributes in different set of circumstances. It is a riddle to find out why some people have a desire and ambition to achieve a set goal in life, whereas other lacks it. Some can derive great satisfaction from jobs and others, for whatever reason cannot. Organisations cannot achieve goals unless employees’ behaviour is directed. The goals may be set either by an individual or by his superiors at the place of work.
Employees’performance depends on their ability and motivation. Ability depends on education, experience and training. Improving ability is a slow and long process, whereas, motivation can be improved quickly. The factors for motivation differ from person to person and over time their motivations might change. There is no common factor for it. Motivational factors can be Intrinsic or Extrinsic. Some persons are motivated by money, some by Incentives, some by recognition, some by feelings of achievement, some by the working conditions, some by power and position and some by rewards, punishment. Therefore, behind any action there is some cause, motive or purpose. It is combination of a person's desire and energy directed towards achieving a goal.
Process of Motivation:
Employee motivation depends both on Internal and External factors. Some of these factors are enumerated below-
Internal Factors External Factors
1.Motives 1.Managerial Process
2.Needs 2.Working Conditions
3.Goals 3.Policies
4.Aspirations 4. Promotional Opportunities
5.Wants 5.Organizational Goals
6.Values 6.Leadership Style
7.Morale 7.Communication
Theories of Motivation:
Different theories have been propounded for motivation. Theories of Maslow, Megreger, Herzberg are well known. These theories can be broadly classified into two categories Content Theories and Process Theories.
a- Content Theories:
Content theories suggest that each of us has certain needs and/or desires that have been internalized over many years. It suggests that we become motivated to meet our internalized needs. Two exponents of content theories are Maslow and Herzberg.
Maslow’s Theory:

According to Abraham Maslow it is the need, which is the starting point for motivation. Every individual has several needs. The needs differ from person to person. The behaviour of an individual at a particular moment usually depends on his strongest need. When despite continuous efforts of an individual his needs are not satisfied, he may substitute goals that may satisfy his needs. According to Maslow man’s needs are arranged in the hierarchy of less or great priority or potency. Unless the need at the lower level is satisfied, the higher order needs would not be operative. Once a need is satisfied, it no longer works as a motivator.
People at the lower levels in an organization are most concerned about achievement and success, whereas people occupying higher position in the hierarchy attach more importance to autonomy and self-actualization.
Maslow’s ‘Hierarchy of Needs’ emphasizes that once lower level needs, such as food, drink and shelter have been met, we’re motivated by higher level needs such as job security and a safe environment. Next, we seek out contact and friendship with fellow workers and fulfill the need to belong to a group. Once this need is satisfied, we strive for recognition, acknowledgement and rewards. As per Maslow the hierarchy of needs is as under, which people want to be fulfilled?
1. Physiological needs: These are the basic needs having highest strength. These needs are for sustaining life. They are for food, water, nutrients clothing, shelter etc. They continue to dominate until they are somewhat satisfied. So long these need dominant, all other needs become non-existent. A satisfied want no longer remains a want. Once the physiological needs are satisfied a new set of needs known as Safety needs emerge.
2. Safety Needs: These are basically the needs for self preservation and security for all kinds such as stability, dependency, protection, freedom from fear, anxiety chaos, need for legal protection and so on. This is the need for secure place to live where there is no fear of persecution, harassment. In a job it is the need for seniority, security, etc. Once the Physiological and Safety needs are fairly satisfied the needs for love, affection and belongings emerge.
3. Belongingness and love needs: It is a social need. It is the need to build relationships and feel part of a group. It is the need to belong and to be accepted by various groups. On satisfaction of this need a man feels confident, prestigious and powerful. It is the need to relate closely to others to have a friendly cooperative work group. On satisfaction of the need an individual wants to be more than just a member of the group. He wants recognition from others and thus emerges the esteem need.
4. Esteem Needs: All people in our society have a need for self-respect or self-esteem and for the esteem of others. These needs are of two types. Firstly the desire for strength for achievement, for mastery, competence confidence and freedom.
Secondly the desire for reputation, prestige, self-respect, status, fame, dignity, appreciation, recognition to feel good about oneself. Once an individual’s esteem needs are satisfied his focus shifts towards the need for self-actualization.
5.Self-Actualization needs: It is the desired need for growth. People work harder when they feel that their performance will show their standing on intelligence or leadership. It is a need to maximize one’s potential. It is achievement of things according to one’s self image. It is realizing of one’s potentialities .It is a desire to become what one is capable of becoming. Every individual has different motive in performing an activity.
It is the need to realize one’s full potential as a human being; to achieve that entire one is capable of. It is the highest achievement. The person works with one resolute determination, with a single pointed mind.
The higher nature of man includes the need for meaningful work, responsibility, being fair and just and doing what is worthwhile which he can do it well. Man’s nature is to seek actualization.
According to Maslow, our needs provide the motivational driving force that will influence our behaviour. His ideas suggested that dissatisfaction at work isn’t something intrinsic to the employee but may be attributed instead to poor job design, inappropriate managerial behaviour and/or structures and too few opportunities for job satisfaction.
Herzberg’s Theory:
Fredrick Herzberg developed the theory after analyzing extensive interview data. People were asked what things on their job made them unhappy or dissatisfied and what made them happy and satisfied. The results indicated that people were dissatisfied with their jobs when they were concerned about the environment in which they were working. These include factors like poor company policy, interpersonal relations, salary, security, achievement, advancement, recognition, responsibility, work itself and working conditions. People felt happy about their jobs, as the job itself was good.
The theory is also known as “ Two Factor Theory”. The theory indicates that people like to do those things, which they consider valuable. Human beings are influenced by two basic and quite different needs. Those needs, which not fulfilled cause dissatisfaction and those, which provide positive satisfaction upon fulfillment. An individual is not highly motivated as a result of receiving an increase in salary. By increase in his pay, he temporarily ceases to be dissatisfied about his pay. A person derives more motivation when a thing gives him a sense of achievement, more responsibilities, advancement or increase in the intrinsic interest in the work.
If these conditions are not present they do not result in dissatisfaction. Increase in efficiency acts as motivator and gives people greater scope to gain personal achievement, recognition challenge, responsibility and opportunity for individual growth and development.
Preventing or reducing dissatisfaction in the work situation is quite different from providing positive satisfaction. Motivation can be provided if motivators are used in the work situation.
Herzberg believed that people had higher and lower levels of needs. He divided these needs into following two categories:
1.Hygiene factor:
These factors are not intrinsic part of job and are not directly related to work. These are ‘environmental’ factors. These factors are related to the conditions under which a job is a performed. These factors do not increase the output of a worker however; they prevent dissatisfaction or losses in workers performance due to restrictions. These factors are mainly related to the environment at the place of work e.g. policies and administration, types of supervision, style of leadership, working conditions, inter-personal relationships security, type of work, working hours, status, job security salary etc.
Hygiene factors do not, in themselves, provide motivation but their presence reduces dissatisfaction and de-motivation.
2.Motivators:
These are the intrinsic job conditions, which motivate an individual in performing his job, and help an organisation in reducing dissatisfaction amongst workers. These are positive factors within a job role that allow for such things as achievement, responsibility, recognition, advancement and challenge. They contribute to the satisfaction of a worker, and his development while working in an organisation. They also give a feeling of achievement, professional growth, and recognition for accomplishment, challenging work etc.
Herzberg suggests that these factors are the ones that motivate individuals to perform to the best of their ability.
According to Herzberg both sets of factors are must for maximizing job satisfaction and for motivating the entire workforce. Employees will become dissatisfied If lower needs are not met. Even if steps are taken to reinforce lower level needs by the addition of more hygiene factors (such as wages or work hours), it is not necessary that the people would be motivated. A more effective way of encouraging a motivated workforce is to appeal to the higher level needs of an employee by assigning more responsibility or providing greater scope for advancement. In this way the individual’s goals are satisfied within the context of existing organizational goals.
As per Frederick Herzberg “ Management have always looked at man as an animal to be manipulated with a carrot and stick. They found that when a man hurts, he will move to avoid pain—and they say, ‘we are motivating the employees.’ Hell, you’re not motivating them, you’re moving them.”
Process Theories:
Process theories of motivation look at our thought processes. It explains the behavioral choices that are made which lead to actions intended to acquire reward. If one feels that his efforts will be appreciated, he may be more inclined to work harder towards a goal. The choice to assign efforts to a particular activity is decided on the expected reward. For example, if one is more productive than his co-workers in a similar role, and if this is recognized and rewarded then the level of motivation of that person will be the maximum.
Adam’s Equity Theory is one example of the process theory of motivation. Adam argues that people are motivated by ‘inequity’. We compare ourselves to others performing similar tasks and assess relative effort and reward. If one sees a co-worker is being rewarded similarly, in terms of rewards, salary, prestige and promotion, without putting more efforts and energy than himself, it acts as a negative motivator and the result is a dis-inclination to continue inputting effort and energy. However, if rewards commensurate with efforts, it results into a positive motivating factor. When one sees performers and non-performers are treated at par performers become demotivated.
Duglas MC Gregor’s Theory:
Douglas McGregor in his book “The Human Side of Enterprise”has examined theories on behaviour of individuals at work. According to him it is the management, which has to harness human energy to organisational requirement. Traditional and progressive organisations have different predisposition towards people. He formulated two models. Theories developed by him are known as “Theory X” and “Theory Y”.
Theory “X”:
Theory “X”relies mainly upon external control over human behavior. Traditional organisations have system of centralised decision-making and superior subordinate pyramid. It has assumptions about human nature and human motivation. The underlying assumption is that people must be made to do what is necessary for the success of enterprises. Its attention is directed to the techniques of direction and external control. It lays emphasis on the tactics of control procedures and techniques of telling people what to do, so as to determine whether they are to be rewarded or punished.
Assumptions of Theory ‘X’
Theory “X”is based on the following assumptions. It assumes that:
Average man is lazy by nature and inherently dislikes to work. He is self centered and indifferent to the organisational needs. He dislikes responsibility and prefers to be directed. He desires security above every thing. He is motivated only at the physiological and safety needs. He lacks ambition. He is gullible, not very bright has no or little creativity in solving or organisational problems. As the work is inherently distasteful to him he wants to work as little as possible or would avoid it if he can. Therefore, people must be closely watched and controlled and threatened, and then only they will work hard to achieve organisational goals. Therefore management must be tough and should have tight controls. Organisations, which accept theory ‘X’assumptions supervise and control their employees closely. They feel that external control is appropriate for dealing with unreliable, irresponsible and immature people.
A management can be soft, weak or hard in its approach with the employees. Workers take advantage of soft approach. They continually expect more but give less and less. On the other hand hard approach creates difficulties.
The assumptions of those following theory X are “wrong”. Man needs some deeper higher order motivation, the opportunity to fulfill himself, than financial rewards at work.
Those in control and in command do not give opportunities to the employees to prove their worth, but behave in unexpected fashion. Thus forces breed counter forces, which restricts output.
Workers are terrorized and management objectives are sabotaged. The best approach therefore could be neither hard nor soft but it should be transparent, firm and fair.
In view of increase in the level of education, standard of living democratic pattern of society, McGregor concluded that theory ‘X’ assumptions might fail to motivate many individuals to work towards organisational goals. He felt that management should understand human nature more accurately and developed an alternate theory of human behavior known as theory ‘Y’.
Theory ‘Y’
The theory relies heavily on self-control and self-direction. It assumes that by nature a worker is not lazy and unreliable. If properly motivated to work he can be creative and self-directed. Hence it is the responsibility of organisation to create an environment, which will encourage commitment to its objectives. It would also provide opportunity for initiative, ingenuity and self-direction in achieving organisational goals.
Assumptions of Theory ‘Y’:
Theory ”‘Y” is based on the assumption that Work is a natural phenomenon. In favorable conditions it is like play. By nature people are neither passive nor resistant to organisational needs. They have become so as a result of experience in the organisation. Self-control is often indispensable in achieving organisational goal. The capacities for achieving responsibility readiness to direct behavior towards organisatiional goals are present in people. If properly motivated, people can be self directed and creative at work. It is the responsibility of management to make it possible for people to recognize and develop their abilities. Motivation is the potential for development. It occurs at the social esteem and self-actualization levels as well as physiological and security levels.
Supporters of theory ‘Y’ help employees in gaining more experience and expertise. They assign more and more responsibilities to employees and have lesser external control over them. Employees are able to achieve the satisfaction of social esteem and self-actualization needs within this kind of environment.
What motivates?
The theories mentioned above energies and influence human behavior towards a certain direction/goal. Motivation is the key to individual success and organisational effectiveness. Under the conditions of modern industrial life, the intellectual potentialities of the average man are only partially utilized. Motivation differs from person to person, for some it is intellectual challenge, and for some an opportunity for creative activity or social contacts. The task itself may not be rewarding but its accomplishment may. Delegation of responsibility is conducive to motivation. People desire to seek recognition and approval, praise from others/superiors. This satisfies employee's ego. There are different reasons for a person in doing his work with interest.
1.When the work itself is intrinsically rewarding, it is an incentive to work hence motivating.
2.When the job is important, challenging, satisfying employees are motivated and committed to the organization.
3.When good interpersonal relationship exists.
4.Whencontrol and punishment are not the ways to make people work.
Finer points in motivation:
Management pays a heavy price for dissatisfying work, friction on the job, substandard output and quality, high turnover, absenteeism and tardiness etc. People differ in the expectations they bring to their jobs and the satisfaction they derive from job. While dealing with human being an organization has to keep in mind that
A job can be both satisfying and dissatisfying at the same time.
Motivation lies at the root of any person’s desire to excel in his or her work.
Motivated workers are the most productive worker.
The promise of money can make a man to work, but it cannot motivate him. Motivation means an inner desire to make an effort.
Routine tasks give evidence of extinguishing worker’s ambitions, initiative and purposive direction towards life goals.
If the work provides little satisfaction, employees seek their satisfaction else where in the job
Men often will not work at all and will rarely work well under other incentives if the social situation from their point of view is unsatisfactory.
" Blowing of Steam" would relieve many tensions and dissatisfaction.
Leadership and Employees Motivation:
The job of a manager is to get things done through employees. To do this he should be able to motivate them. Motivation in practice is different from what is in theory.
To understand motivation, human nature has to be understood. Which can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace. Therefore qualitative leadership is must for effective management.
Researches indicate that beyond a certain point, a worker cannot find satisfaction by high monetary reward. Workers prefer
Job security
Working conditions
Advancement
Type of work
Company - proud to work for
Conclusion:
Late Bertrand Russell has expressed that mere knowledge does not have motivation within it: Motivation comes from a different source, namely, the field of emotions and sentiments in man. Something must stimulate knowledge ;otherwise it remains static and unable to influence human action. Our knowledge, said Russell that any two sides of a triangle are greater than the third side, does not motivate us while walking, that we should go by the short side and not by long side that motivation comes from some other inner source in man.
Motivation is inspiration .It is the joyous content of thrilled ecstasy of each immediate moment. An inspired work, and working in inspiration environment promises the greatest success.
The success of an organisation depends mainly on its work force unless the workers perform their duties properly and efficiently an organisation cannot grow. Every organisation desires best results from its employees and most employees want to do a good job. They want to do meaningful, challenging, exciting jobs and work, even if it is tiring and unpleasant. Therefore organisations have to make jobs challenging, exciting and meaningful. They have to understand the impact of various motivational and de-motivational factors. There is no common factor responsible for motivation or demotivation as it differs from person to person. A lack of motivation could be due to a number of problems viz., personal, family, financial, absence of corporate culture and policy, Style of management, attitudes of the manager, unfair treatment to people, improper reward and punishment system etc., To get maximum motivational mileage management has to be transparent and fair in its dealings. Motivation has to be institutionalized and not individualized.

Public Relations

What is Public Relation (PR)?

Public Relations is a strategic management function that helps in creating mutually beneficial relationships between public and the organization by adopting different methods of communicatuion.
"Public Relations is a set of management, supervisory, and technical functions that foster an organization's ability to strategically listen to, appreciate, and respond to those persons whose mutually beneficial relationships with the organization are necessary if it is to achieve its missions and values." (Robert L. Heath, Encyclopedia of Public Relations).
According to Edward Bernays “ Public Relation is a management function which tabulates public attitudes, defines the policies, procedures and interest of an organization followed by executing a program of action to earn public understanding and acceptance.”
It would thus be observed that public relation is a form of communication primarily directed toward gaining public understanding and acceptance.
Objects of Public Relation:
The aim of public relations is to create goodwill and protect the image of organisation. It helps a commercial organisation in achieving marketing objectives by evolving and adopting variety of programmes for influencing public opinion in favour of a product, service or concept. It is an art of arranging the truth in an appealing manner. Public relation increases awareness level of people by informing them the things that have been done or are being done. It helps in attracting the attention of clients, consumers or the audience and builds mutual understanding, promotes harmonious relationship, and raises public's consciousness about a product, service, individual or organisation.
Many business organiations, government bodies, banks use public relations for public awareness, image building, and or for promotion and marketing products.
Public relations are cost effective and more credible. It can affect public awareness at a fraction of cost of advertisement.
Advertising and Public Relations:
Advertising is different from public relations. Advertisement is a paid publicity. The advertiser who pays for the ad space decides the message, its format, style and the time / period of publication. In case the message is to be telecasted through electronic media, the advertiser provides audio-visual of the message and selects the slot (prime or normal) for telecasting. While reading the advertisement on the print media or watching an advertisement on electronic media or a soap opera a person comes to know that the product or services being marketed is to boost the sales.
Appealing, catchy, and creative advertisements have lasting memory in the minds of masses. Designing advertisement is an art. Copywriters or graphic designers keeping in view the target audience design advertisements. Advertisements can be given any number of times subject to availability of funds allocated by the organisation for this purpose.
In case of public relations, a relationship with the print and broadcast media is developed. For getting free publicity for products/services, news is released to print and or electronic media in such a manner that the editor is able to develop an article to cover the event. The media publishes / broadcasts the news if it considers it to be newsworthy. Since it is not paid for it is a cost-effective way of getting the message/information released to public. However, the press release about a new product is released once, as an editor would never publish the same press release several times in the newspaper or magazine. Since a press release about a product or service or event comes from media, it has positive impact in the minds of masses and creates credibility .
Marketing Public Relations (MPR):
Marketing Public Relations is the integration of Marketing and Public relation functions. Both Marketing and Public Relation specialists have a common goal i.e. launching of product in the market for sales. However they approach differently towards the goal. Marketing public relations is the support system for sale of a product to potential customers by conveying information about the product or services. Their job is limited to preparing and disseminating information to the masses, the end user. They are not in actual sale of product, but they build strong corporate image in emerging and ongoing market.
Whereas, marketing managers are the field functionaries their aim is to boost sale and convert the product into cash. They are much more bottom line oriented. However, the job of marketing managers and public relation officials are interdependent.
Functions of Public relations:
In most of the organizations people working in public relation department identify the target audience first, and then tailor every message to appeal them. The target audience can be specific, general, nationwide or worldwide, but it is more often a segment of a population. Public Relation department performs following important functions;
1.Liaisioning:
Maintaining liaison with press, media, authorities, and institutions in the most positive way. Maintaining cordial press relations helps in getting the news published in the press and other media channels about the organization, its products and services.
2. Counseling:
Advising management about its image, position of institution, public issues, social responsibilities of the organization, public ramifications with regard to policy decisions and courses of action.
3. Publicity:
Designing / finalizing publicity material for specific products, services and publicizing them.
4. Corporate image building:
Anticipating, analyzing and interpreting public opinion, attitudes, and issues that might jeopardize corporate image and taking timely corrective measures to neutralize the adverse impact.
5. Undertaking studies:
Researching, conducting, and evaluating, on a continuing basis, emerging needs of the society, market, consumer preferences with a view to promoting, understanding of the organization and to have an edge over competitors or critiques.
Tools of Marketing Public Relations:
People connected with marketing public relation build corporate image favourably and assist in launching of new products by generating interest in the product and also by regenerating interest in the existing product loosing hold in the market. In case of adverse publicity by their competitors about the product or public encountering problems, they defend the product and the organization.
The main tool of public relation is press release, publication, events, and undertaking public utility services. It is a kind of two-way communication channel for bringing consumers and the management together
1.Press release:
It is a written statement distributed by an organisation to print and or electronic media having news value. It is different from a news article.A news article is the news ,a collection of fact complied by journalist for print ,or electronic media.Whereas, a press release is designed and prepared by the organisation and given to journalists for developing news or articles on the subject. A press release is organisation’s version about its achievement that is generally biased.
Press release is a method of free publicity. Regular and effective news release makes an organisation a source of news media. Favourable news about the organisation , its products enhances sales and reputation.
2.Publication:
To reach and influence their target markets organisations rely extensively on published materials, which include annual reports, brochures, articles, newsletters, magazines and audiovisual materials.
3.Events:
Organisations arrange special events like press conference, seminars, trade shows, quizzes, sponsoring sports, marathon races and cultural events for projecting corporate image and drawing public attention towards new or existing products and other services. Organising special events help in publishing the products, services, image of organisation and results in to trade enquiries, which generally culminate into sale.
4.Public Service Activities:
Undertaking public service activities such as organizing blood donation camps, free medical checkups, fund raising drive for a social cause, contributing money to a good cause builds goodwill of the organisation.
Conclusion:
Publicity and consumer relations are the important part of public relations. The aim of PR is to enhance the reputation of the organisation by shaping the image of its people and disseminating information about the products and services by generating positive publicity in the news media. The important goal of public relations is to create awareness of what the organization is, what it offers, and what it does. Public relations are the most valuable tool in accomplishing this.
Since public relations communicate messages through the news media, a successful PR person has to be a good communicator, he has to cultivate and maintain contacts with journalists.

Promotion in Banks

Human resource is one of the most important resources in an organisation. An organisation is known by the quality of its employees Organisational effectiveness depends on availability of the right kind of people at the right time as better people achieve better results. Technological improvements and tough competition in global market has necessitated the organisations not only to select the right type of staffs, but also to retain them..
As a part of human resource management, every organisation tries to acquire and retain skilled, competent, and motivated employees. With a view to retaining skilled employees, management offers opportunities for career progression through promotions.
Recruitment in Banks:
Banks recruit people in all cadres i.e. sub staff, clerical, officers and executives. Every bank has a recruitment policy. In most of the banks the ratio of recruitment in officers cadre is linked with the recruitment in clerical cadre, which is 1:3, i.e. for one officer three clerks are to be recruited.
Prior to June 2001 recruitment in clerical and officers’ cadre in public sector banks were done through the BSRB (Banking Services Recruitment Board). The board conducted both written tests and interviews and used to send dossiers of selected candidates to those banks for which recruitment was done. The banks did not have much say in the selection process. However, with effect from June 2001 BSRBs have been abolished and banks are free to have their own selection process. With the implementation of technology banks were saddled with excess manpower. After the introduction of voluntary Retirement Scheme
(VRS) in public sector banks they were advised not to fill up the vacancies arising due to employees opting for voluntary retirement. Banks are permitted to recruit technical and specialized staff for meeting their workforce requirements arisen from implementation of technology.
What is Career?
Career is the goal of life achieved through a chosen pursuit, a profession or occupation. Each person's career is unique and is a life long process. It refers to work related attitude and behavior. Dynamic, potential and growth oriented employees when not allowed to grow in the organisation start alienating and quit. This is a great loss to the institution. Therefore, organisations encourage growth and career development of employees.
Career development is the ongoing process of refinement and acquisition of skills and knowledge. It is professional development, coupled with activities related to career planning.
What is Promotion?
Promotion is reward for competence and good performance. Competence is the ability to use knowledge, proficiency, efficiency, and personal skills in performing a job. Competency of a person comes into light only after working over a period of time to a required standard.
Promotion or career progression is elevation from one stage to another in rank or position in an organisational hierarchy having more responsibility, more status more power and involves a higher level of job responsibility and decision making authority with higher pay or more prestigious work environment. It is matching an individual's career aspirations with the opportunities available in an organisation. It is practical method of utilising employees’ talent, skills and managerial capabilities. Promotion is a way of career progression
Promotion in Banks:
Banks recruit people in different cadres for carrying out various functions. Staff members in a bank can broadly be classified as sub staff, clerical, officers and executives.
Employees in any institution want to progress both in life and in the organisation. They desire to grow with the institution and do not want to stagnate. Stagnation is the silent killer of individuality. Promotion satisfies employees’ various needs such as social, recognition, respect and self-actualisation.
From time to time Government issues guidelines for internal promotion in public sector banks. The Board having regard to the Guidelines of the Government, and Indian Banks association if any, formulates guidelines and eligibility criteria for promotion. It also decides the system and the processes to be employed for promotion from one scale/grade to another. One of the Government guidelines stipulates that officers should have appropriate level of Computer Literacy for promotion to higher grade/scale.
Promotions from one scale to another or one grade to another are done on the basis of merit with weightages for seniority, educational/professional qualifications, etc., and minimum number of years of service put in the feeder grade. Promotion depends on the number of vacancies in each cadre / grade.
Banks have different promotion policy for each cadre of staff. However, the commonality for promotion criteria in all the cadres is

1.Minimum length of service in the cadre. The concept of minimum length of service for promotion from one cadre/ scale to another ensures assured career movement in the Bank.
2.Qualifying the written test (not applicable in some banks for promotion of officers from scale V onwards in executive cadre). Written test is for assessing the knowledge base and the preparedness/ abilities of the candidates for taking up positions of higher responsibilities.
3. Interview for judging personality, approach, ability to face challenges, communication style etc
4.Report on the past performance and potential.

Banks also have a policy for out of turn promotion to those employees who are outstanding sportsmen/sportswomen and those who apprehended dacoits/ robbers etc.
In some banks the concept of "Benchmarking" has been introduced so as to ensure the elevation of the right people in the Bank to man higher positions of responsibility. Benchmarking induces employees desire for increasing their knowledge base and motivates them in achieving higher goals/ challenges. It is a persistent drive for improving performance levels and augmenting skills and productivity.
What is Promotion Policy?
Every organisation has some system or policy for elevation of its employees to higher cadre. Promotion policy is a document that contains important guidelines for promotion from within the organisation and the criteria, procedures and factors for promotion.
It enables employees to know their career progression in the institution. A well-documented and transparent promotion policy not only creates trust in the management but also helps in boosting employees’ morale. It also helps them in sharpening knowledge and skills. Promotion policy can be either

a).Normal or
b).Fast track

Normal promotion policies do not give cognizance to the extra ordinary talent, ability, capability, experience, qualification, maturity level and performance of employees. An employee has to wait for his turn only after completion of a minimum period of service. This results into job alienation and talent migration.
To give talented employees opportunities of climbing organisational ladder faster, organisations have also adopted fast track promotion policy. Talented employees are given out of turn promotion after putting them to rigorous selection procedure. This helps organisation in retaining good performers and reducing the chances of their poaching by competitors.
Impact of Promotion:
Promotion from within the organization is a powerful employee motivator. Internal promotion generates loyalty through the recognition of individual merit and improved morale by fulfilling employees’ need for increased status. It not only has positive values relating to morale, employee’s long-run commitment; reputation of institution, but also helps in taking advantage of the presence of potentially fine staff amongst the lot of the employee. Promotion motivates and rejuvenates employees. It satisfies their recognition and esteem needs.
Conclusion:
Organisational hierarchy has pyramidal structure, which gradually becomes narrower at the top. Therefore, aspirations of all employees appearing in the promotion exercise cannot be met. Thus, every promotion exercise results into both sweet and sour experience once the results of promotion are declared. Those not selected adopt negative and critical attitude, approach and look into flaws in the promotion exercise and negative aspect of management. Their frustration becomes contagious.
It is therefore necessary on the part of management to counsel good, hard and potential workers for avoiding their drooping morale and recharging their energy level. Counseling works as a healing balm on their psychological wounds.
Promotion from within the organisation becomes dangerous when selection is not done on merits, when it is done not on what one knows but whom one knows. When it is done not on the basis of working but on the basis of networking.
Getting promoted to a higher cadre is not a passport to continue at the elevated position. In some organisations when the performance is not found satisfactory, or due to some disciplinary reasons employees are demoted to a position lower than what they were holding. A demotion is a change in class title. Demotion is the reverse of promotion.

TRAINING

Introduction:
In the current global scenario, business environment is rapidly changing. Today knowledge has become an important competitive advantage. Lacking competence and knowledge are the most critical factors restricting the development. The only competitive advantage that differentiates success factors of various organisations is effectiveness of its knowledge resource.
It is the quality of workforce, their abilities, capabilities, zeal, commitment, knowledge and intelligence that plays crucial role in the development of organisation and bringing it on the global horizon. Knowledgeable and trained staff is the power grid of an organisation. It is the responsibility of management to raise efficiency and standards of performance by developing workers.
Importance of Training:
Training is an essential ingredient for improving the quality of work force and their efficiency. It enables employees to acquire new competencies and prepare them to operate effectively and efficiently. It facilitates in bringing out latent talent and incites the inner as well as outer behaviour of the workforce.
Our knowledge is not steady and is ever changing. It becomes obsolete and blunt unless brushed up and sharpened on continuous basis. Therefore, improving or obtaining new skills by employees is must for survival of the institution. This has resulted into the growing need for training and development programmes. The more knowledge the workforce has, the more wealth the organisation would be able to create.
Management’s Role:
Every organisation has to be committed to the development of its workforce and training is an important tool both for the growth of employees and that of organisation. It is a prerequisite for the qualitative development and effective management of human resources. It is the systematic development of the attitude, knowledge, and skill pattern required by employees in performing the job efficiently. It is an investment in human development and the root system of the organisational tree.
Purpose of training:
The purpose and object of training is to enhance knowledge of employees, develop their inner personality, potential and outer efficiency so that they can perform better, operate efficiently and effectively in the changing environment. Training provides theoretical, technical and behavioural knowledge to employees and triggers their thinking process and moulds their behaviour, attitude and aptitude towards job and the institution and plays important role in retaining talent .It provides skills to both new entrants and existing employees in discharging responsibilities and in performing job. In view of the variety of activities now being undertaken by organisations, multifarious training needs of their staff have arisen.
Training to new entrants:
The newly recruited employees can be classified in to two broad categories. Those who are new in the employment market and had no prior experience before joining the organisation, and those who had worked earlier and have switched over from other jobs.
Those who join with no previous experience, start with a clean slate on which nothing has yet been written. They have to learn to have a broad idea of their job, systems, procedures and practices and responsibilities in the organisation.
Those who already had previous work experience have first to unlearn the system, practices, approach and behaviour learnt in their previous organisations and have then to learn and mould themselves in accordance with the culture, philosophy, systems, procedures, and practices of the new organisation.It takes time to unlearn.
Attitude of employees towards the organisation and the job are shaped by the experience during the initial period of joining. Employees take interest in the job when an opportunity to learn is provided to them, when some one is willing to guide, instruct and solve their intellectual impatience and invigorate them; revive their enthusiasm, morale and confidence. Training is the source of inspiration to both new and existing employees.
Skills needed for Job:
Basically employees require following skills for performing job.
1.Technical Skill:
Technical skill is the knowledge about the systems, procedures rules regulations, methods, techniques, and equipments. It is acquired by experience, in house job cards, education and training.
2.Behavioural Skill:
It is the skill related to working with and through people, understanding peoples’ motivation, effective leadership, inter-personal skills for leading, motivating and communicating with the peers, sub-ordinates, superiors and public.
3.Conceptual Skill:
Conceptual Skill is mental ability to analyse, interpret information received from various sources. It is ability to understand the complexity of organization, use of self-knowledge in organisational goals, inter- relationship in various departments, overall policy applications, formation of cohesive groups etc.
Requirements of these skills depend on the position an employee has in the organisational hierarchy. People at the grass root level need more technical skills and less conceptual skill. Whereas, persons occupying higher, top, supervisory positions need more of the conceptual skill and less of technical skill. As one moves up in a hierarchy, decision making and monitoring becomes more and more prominent, one need to have different skills for managing people, managing team, guiding them and taking major decisions. Since organizations are people centric, requirement of behavioural skills is common for the work force at all the levels.
Imparting training:
Since training is a necessity for effective performance and efficiency of institutions, designing training is far more than devising courses. Employees are trained in the following ways: -
1.Orientation

2.On the job training
3.Job Rotation

4.E-learning
5.Self Learning kits
6.Off the job training
1. Orientation:
Immediately after a new entrant joins, he is provided induction/orientation training. In addition of giving him an overall view of the activities of the organisation, corporate philosophy, objectives, job responsibilities and management’s expectations from the him, he is given basic skills in performing the job. Seniors and specialists in the field also address new entrants. The training enables management to understand new employees’ interest, aspirations and attitude and divert their energies in accordance with corporate policy and psychology. Once the induction/orientation training is over training for developing work related skill is provided.
2.On the job Training:
Place of work is the center of learning. Knowledge comes from work, provided one knows how to manipulate it. Under this system the employee is attached to a particular seat and is kept under the supervision and control of expert in that area of operation. He is thus exposed to various aspects of the job and gets hands on training on the job. By observing skills, techniques of trained workers and sharing information, he learns finer aspect of the job and intricacies related to that aspect of working. Experts remove his doubts, if any on the spot.
On the job training sharpens technical skills more than conceptual skills, which is the foundation of knowledge. Unless people are exposed to variety of new responsibilities on a regular basis, their ability to think, visualize future challenges for facing them will not develop.
3.Job Rotation:
One of the objectives of job rotation is to broaden the knowledge of staff. By transferring a person from one assignment to other, he is exposed to various aspects of the work and learns new skills while performing various aspects of job.
Employees learn about different functions when rotated into different positions. Job rotation increases experience, which in itself is knowledge.
4.E- learning:
Developments in the information technology has made it possible to provide knowledge enrichment to all section of employees as per their convenience. The training is provided thorough virtual training and knowledge hubs created on the intranet of the establishment.
Study material on various aspects of job and skill related topics are uploaded on the intranet at regular interval in addition to general topics related to the nature of activities being undertaken by the organisation. Employees knowledge quest is also satisfied by dealing with frequently asked questions (FAQ). Employees can log in the intranet at any time and can go thorough the material and enrich their knowledge. Some organisations have made their intranet site interactive where experts give answers to the quarries raised by employees.
5.Self-Learning Kits:
Many organisations provide professional and technical material to their offices either in the form of a Compact disk or in the form of a book (Book of Instructions). With planned reading an employee can increase his knowledge.
6.Off the job training:
These are basically of two types i.e. Internal and External.
1. Internal:
Imparting training in own training establishments’ falls under this category. In this type of training, employees come in touch with their counterparts working at different locations of the same organisation. The training helps not only in enhancing job knowledge and job-related skills but also helps in building behavioural and relationship bondage.
Sharing of experiences with co-workers gives an insight to the trainees in understanding and appreciating the problems being faced by their counterparts at different locations and how have those been addressed. It thus prepares a person to face unforeseen future challenges .The relationship built also speeds up the process and reduces delay in day-to-day operations where the operations involve inter branch/ interoffice transactions.
For making training effective it is important that the criteria used in the classroom situation resemble as closely as possible the criteria relevant in the working environment.
Training establishments use following methods for imparting knowledge.
a.Chalk and Talk method
b. Group discussion
c. Project work
d. Videos and computer teaching
e. Role-playing exercises and simulation of actual conditions
2. External:
Employees are sent to other institutions for training for specialised functions for which expertise is not available with the in house training establishments of the organisation. In addition to learning new skills and working as a group member in a team, it helps employees in building inter-organisation relationship, confidence and broadens their vision in seeing a problem or proposition from others angle.
Training and Responsibility:
Training is a continuous process. It does not cease just because a person has learned a job well. The most valuable people are those who can take over any number of tasks or responsibilities and do them well and handle multi tasking efficiently and effectively.
Good training requires proper post training deployment of employees and assignment of a reasonable level of responsibility. The responsibility should be in line with the employees’ training and previous experience. Training without any proper utilisation and responsibility results in to poor response to training. In some organisations, those who know and do the job better get less opportunity to learn another. After a time the job turns out to be of a routine nature and the employee either becomes incapable of change or looks elsewhere for other knowledge pastures. Training in new areas of work is a challenge. It provides flexibility of staff that is essential ingredient of an efficient organisation.
Learning and Training:
People in the organisation are to be developed simply for the reason that they are human beings, they have cognitive abilities and thinking capacity. Human being is teachable and can be developed and motivated through sustained efforts. Man can know more and more because there remains at every stage of knowledge some thing unknown. A constantly developed human being becomes an asset for the organisation. Knowledge deprived and stagnated human being is a frustrated person who alienates from the job. He is not only a liability to himself, but also a liability to his organisation.
It is not that the work is great. It is the knowledge behind the work that makes the difference. If the attitude of the work force is good, work is good and if the attitude is wrong, the work is wrong. Wrong attitude reflects drought of knowledge in the work force and improper knowledge management in the institution.
Training modifies knowledge, skills, attitudes and behaviour and broadens employee's horizon as it focuses on learning the skills, knowledge, and attitudes required to perform a job or task or to improve upon the performance of a current job or task.
Training and learning are two different things. When an individual is in school or college he is taught. When he is in service he is on his own. For pursuing career, he has to remain updated about the technical environment, economic development and business requirement of the job.
Training is essentially a skill related learning process. Its aim is to develop employees for job, and to enable them to solve organisational problems. It results into productive work efficiency and inward personal or character efficiency. It stimulates thinking and leads to excellence in action. This is achieved by well-documented training and development process.
Learning is a continuous process. It is a process in which the individual not only gathers new knowledge, but skills, attitudes, feelings, values, experiences and contact that produce changes in his or her behaviour. It consists of change, development, growth and maturation. Part of learning is target oriented and planned activity, while the other part of it is incidental and unexpected. For continuous involvement of trainees in the training programme, trainer has to make the entire method and process of training interesting and has to provide conditions for stimulating the desire to learn more. He should know that learning is selective. “ A man does not learn any thing, he does not love”.
According to Ruskin “ Education is not knowing more, but for behaving differently. ” According to Albert Einstein “ I never teach my people, I only attempt to provide conditions in which they can learn”.
Role of Training:
The role of training is more important. It helps in mutual sharing of resources and expertise in competency building in various areas. Only with the forceps of knowledge, the thorns of doubt can be removed. Learning is a process of that changes beliefs, attitudes, feelings, and knowledge. It is process of growth of latent abilities, personality, system and decision-making ability. It improves methods of performance.
Effectiveness of Learning:
Every one has inherent desire to enhance and upgrade his knowledge. A person learns when he is willing to learn and feels that what ever is being taught is useful to him. Basically learning depends on the learner. Learning is optimum when the environment is warming, supportive and accepting. The learner involves himself with learning activity when he feels safe and assured that his failures would not be laughed at. Learning also depends on intimacy. It is high when trainer has high intimacy with the trainee. It is slow when intimacy is low.
Training Need Identification:
Without competent and efficient human resource, an organisation cannot prosper. Therefore it has to have a well-laid training policy aiming at all round development and skill up gradation for employees. It has to decide the kind of people required to manage organisation. Suitable training leads to enhanced performance of the employees and faster realisation of organisational goals. Training, retraining and redeployment of trained staff is must. Training need identification is necessary for improving individual performance and developing new skills to meet business requirements or for career growth.
What is training need analysis:
Corporate goals, market conditions, competition, new products, future plans future vision and type of inputs and skills required meeting the challenges influence training. Training has therefore to be based on the need analysis derived from comparison of actual performance and market behaviour. On the basis of this analysis, specific job performance skills needed to improve performance and productivity are identified and training needs and methods for overcoming the deficiencies are undertaken.
For effectiveness of training it is essential that the class of employees identified for training should be homogenous, that they should have same level of education, experience and skills. Since the level of knowledge is different at different level there cannot be a uniform design or structure for all category of staff members. Hence different level of inputs and methodology are to be adopted for different level of employees.
For making the training effective and meaningful evaluation of the effectiveness of training is done by obtaining feed back of trainees and observers if any. This helps training system and the management in knowing reactions of trainees towards content and delivery and in identifying the needs to modify the inputs, methodology so that the objectives of training are met.
Training is an art and should be entrusted to those within an organization who has an aptitude for it or who have received special training in the instructions.
Conclusion:
Pumping of any amount of capital does not flourish business and make it profitable. It is the knowledge, backed with imagination and innovation that makes the business vibrant and profitable. It is not the physical asset, but the intellectual asset, which is the driving force for an organisation.
Indian banking is currently poised for far reaching changes. The emerging business profile of banks is basically in non-traditional areas, venturing in new financial products and services. To face competition head on, bank are continuously innovating new areas of operations and improving skills.
Due to technological advancement business of banking is becoming more scientific and systematic. All these have forced banks to provide its work force skills in latest techniques and for this the only probable answer is training and retraining. Effectiveness of training depends on the seriousness of management. When executives, managers attend training programmes with all seriousness it indicates their commitment to human development.
Excellent executives look to the future and prepare for it. One important way to do is to develop and train staff so that they are able to cope up with new demands, new problems, and new challenges and can foresee likely scenario.
Good results can be achieved through a systematic approach to develop workforce through training. Progressive organisations go one step further in their training and development approach. They plan well in advance the new competencies created by technology and the external environment and design training plans, which focus on present and future.
Reference:
Khanna P.K.,” Knowledge Management”, In: Papers from Delegates, Bank Economist’s Conference 2003.

Personnel Inventory System

Introduction:
The future and success of an organisation depends on its ability to match and manage knowledge, experience, skill and talent of its workforce that can bring innovative ideas, perspectives to their work and understand the various niches of the market. An organisation needs people with diverse knowledge, talent, experience and cultural background for facing competition and meeting challenges.
Need for Personnel Inventory System:
For meeting the demand of its products in the market, an organisation maintains detailed inventory of its products. Similarly it also maintains an inventory of its work force required to handle a particular job. The first step in proper planning of human resources is to prepare an inventory of the knowledge, skills, and abilities of each employee. This not only gives an insight to the management in ascertaining competency, ability, readiness and willingness of employees towards shouldering of higher responsibilities but also helps management in finding out shortage or surplus of talented workforce. It helps management in forecasting talent gaps and planning strategies for meeting those gaps and utilising the available talent efficiently.
Personnel Inventory system is the process and method of maintaining data base of employees containing complete personal information about their background, competencies, proficiencies, talent, transactional capabilities, job status, skills attained, pay structure, behaviour pattern, personality traits, performance, preferences, experience, family and socio cultural back ground. The information on various personal and professional aspects of employees is updated at regular intervals. It helps management in utilising right people with the right skills at the right time by tracking their talents, skills and proficiency required for meeting its goals, plans and translating organisation’s vision in reality.
Maintaining Personnel Inventory:
Personnel inventory is a confidential record, which contains observations of superiors about the attitude, conduct, behaviour and performance of an employee. Observations about employee’s behavior that could adversely impact customers and reputation of organisation,
There are many ways to maintain and create inventory. It can be in the form of a simple card catalog or index or on computers with the help of software. Maintaining information on computers with the help of soft ware enables management in taking quick, pointed, scientific and logical decision on various managerial aspects of employee.
Maintenance of inventory depends on the type of organisation and the activities carried out by it. However, broadly it contains the following details.
1. Demographic details:
This contains information about family, mother tongue, marital status, number of dependents, permanent address, health-related issues etc., of an employee.
2.Educational and Skill Description:
It contains both technical and professional qualification of employee, his basic and technical skills, proficiency in other foreign languages, trainings, seminars and courses attended, skill gaps and training needs.
3.Employment details:
Date of joining, cadre /grade /capacity in which joined. Particulars related to previous employment and job responsibilities held.
4.Mobility details:
Postings and experience gained in various departments, tenure of working at different locations if the organisation has establishments at other geographical areas.
5.Honesty:
Observations about the integrity of employee and disciplinary action if any taken against him.
6.Performance:
Performance appraisal ratings, special achievements and assignments if any.
7.Attitude, approach, values and work Behaviour:
Decision-making, risk taking ability, sense of responsibility for performance, drive, interest and potentiality to perform job. Behaviour at the workplace, approach towards superiors, peers, subordinates and customers.
8.Stress Tolerance:
Ability to tolerate stress and keeping cool and maintaining mental equibilirium in adverse situation.
Advantages of Personnel Inventory System:
A). It helps organisation in increasing competitive advantage by;
1. Increasing productivity and profitability by utilising right persons with right attitude for the right job.
2.Strengthening customer service by deploying those who have liking for marketing, public relations, and dealing with people.
3. Minimising work-related problems
4. Reducing employee turnover
B). Workforce Planning;
1. Forecasting talent availability, gaps, needs of the organisation on the basis of emerging challenges in the market and the rate of growth projected by the management.
2. Bridging the gap arising due to retirement, resignation and turnover of employees.
3. Grooming employees for new opportunities that fit their career interests and capabilities.
4. Career planning, career counseling for employees to help them move up.
5. Identifying and grooming internal talent for meeting challenges arising due to globalisation.
6. Leadership development, and succession planning
C). Job Identification:
1. Helps in Internal placement of employees by identifying suitable and right person for undertaking new or additional responsibilities.
2. Helps in identification of suitable employees for managing key positions in the organisation.
Conclusion:
A proper personnel inventory system enables management to utilise its human resources properly. It also boosts employee’s morale and motivates them in giving best out of them, as they know that they will be taken care of.

Performance Appraisal

Jobs are becoming more challenging and demanding day by day. Consistency in progress and development depends on the quality and effectiveness of the workforce. Organisations have therefore to create an environment for motivating, retaining and rewarding good performers. Taking stock of the workforce and assessing their performance on regular intervals, helps management in utilising the potentialities, abilities, talent and capabilities of employees to the fullest extent. Just because a worker is performing effectively, does not mean that he would continue to perform effectively in future. Organisations need only performers. Employees receiving poor appraisal are termed as non–performer. No employer can tolerate poor performance, as poor-performers are parasite on the institution. They can either be shown the door or can be counseled groomed to cope up with the new emerging challenges. All depends on the circumstances. As organisations want to grow with the performing employees, they too want to grow with the job and with the organisation.
Why Performance Appraisal?
Organisations employ people for performing various tasks. It is the basic need of the management to know whether employees are performing and achieving the goals of the institution. What difficulties are they facing in discharging duties and what can make them excellent performer. How their efficiency, effectiveness can be enhanced, sharpened and properly channelised for the betterment of the institution. Performance appraisal is one of the systems for understanding and evaluating the performance of employees. It is an important tool in the hands of management for tracing, measuring and documenting performance towards achieving results.
Advantages of appraisal:
The spirit behind performance appraisal is to continuously improve individual performance for improving overall productivity of the organisation. It helps an organisation in communicating and reinforcing priorities, goals, and work values to employees. It helps them in knowing their duties, responsibilities and management’s expectations. Performance review not only covers the specific performance objectives for the individual employee, but also covers the overall standards and work values of the organisation. Employees’ productivity is enhanced by encouraging them with financial or non-financial rewards and incentives. Performance of poor performers is improved by providing them training in the areas of deficiencies.
Performance appraisal provides feedback to employees about their performance and work behaviour. It helps them in identifying their needs for development and getting over performance deficiencies. It also acts as a motivating factor.
Procedure involved in Performance Appraisal:
Every employee wants to know the expectations of management, his responsibilities and duties, and the feedback about performance. Therefore, the first and foremost step in performance appraisal is to determine the results that the institution wants an employee to achieve. Assessment of performance enables management in distinguishing between high and low performers. Appraisal is done on a pre-designed standard form, as off–the–cuff evaluations generally defeat the purpose.
Basically appraising involves following steps
1). Setting of work standards:
It is defining the key job responsibilities and objectives that an employee has to perform. These are decided and documented at the beginning of the year by the reviewing authority with mutual consultation and agreement. It enables an employee to know his prime responsibilities during the year. If a job responsibility needs revision, employee can discuss with his supervisor for revision in key performance areas. Standards should be clear and specific so that employee understands his duties, expectations, and how his work is linked to the overall goals of the organisation. It should be simple and expressed in measurable terms. Setting of work standards is like entering into a memorandum of understanding between superior and employee.
2). Periodicity:
Periodicity and system of review differs from institution to institution. In some organisations appraisal is done annually and in some, performance is a reviewed continuously. Performance evaluation acts as a feedback to an employee about his performance, efficiencies, deficiencies and management’s expectations. It helps him in improving potentialities and performance. Working in any organisation and not having one’s progress periodically evaluated is like playing a game without keeping a score.
3). Who assesses performance?
Those in daily contact with the employee’s conduct, output and performance can best measure performance. In some organisations, subordinates, peers, group members, or a combination of one or more review employee’s performance. The system of getting performance reviewed by cross section of employees reduces chances of injustice to the person whose performance is being reviewed.
4). Assessment of actual performance:
Performance review is not a once or twice yearly task, but a full-time duty. One way to assess performance is through a formal review on a periodic basis. At the end of the designated time period, the supervisor discusses with the employee his performance and evaluates it in accordance with the established performance objectives, standards mutually agreed and accepted. The performance review process is a collaborative effort between supervisor and employee; therefore, it needs to be formal and fair. Performance is judged both on qualitative and quantitative parameters. By turning the appraisal into a real discussion, the supervisor learns some insightful information that could help boost employee’s performance in the future.
Objectives of Performance Appraisal:
Performance appraisal is an integral part of management. It is powerful and effective management tool for managing and measuring performance of employees. It enables management in identification of aspiration, competencies, talent, capabilities, and potentialities of employees that in turn can result into growth and development of the organisation. It provides job role clarity to employees and helps them in knowing their duties, responsibilities, and expectations of the management. It prepares them in improving their current positions and future opportunities. The objective of all performance appraisals is to
* Review an employee’s overall achievement, based on established performance objectives.
* Review his work related behaviour, willingness to accept reasonable responsibility and learning new skills, attitude towards taking initiative, his attitude and behaviour with colleagues , ability to work in team .

* To judge the integrity of employee in the conduct of work.
*To measures performance of employees in his key responsible areas and rewarded performers either by giving monetary benefit or promotion or both.

*To take appropriate corrective measures against those who are poor, ineffective or non-performers either by showing them the door, or by persuading them to improve or by making them a part of performing team so that group pressure may improve his performance.
* To identify individual’s specific developmental needs for improving the performance.
*To know the strengths and weaknesses of the organisation. Bottlenecks, deficiencies and difficulties being faced by employees in discharging their duties so that corrective measures can be taken.

*To gather useful data on the abilities, potentialities and capabilities of employees for shouldering higher responsibilities or jobs where those skills can be better used.
* To identify, skill gaps and bridge them by imparting training.
*To develop career goals for employees for better performance and stimulating their latent desire for self-development.
*To give opportunities to employees to highlight their performance (self appraisal) and achievements from their perspective.
*To know about employee’s aspirations, their developmental and training needs and what can make them good performers.
*Providing constructive feedback, both positive and negative to employees and the areas needing improvement.
* Know whether he is punctual, regular and respects the value of time for self and others.
Effective performance appraisal recognises employee’s desire to progress. It helps him in identifying strengths and weaknesses and in improving performance for future responsibilities and assignments.
Types of Appraisals:
1. Appraisal for confirmation of service:
Every institution has a definite period of probation for new entrants. During the trial / probation period employees performance, attitude, approach, behaviour, remain under close supervision and observation. Employees are confirmed in the service when their performance is found satisfactory. Many organisations have separate appraisal forms for confirmation. To name a few, these forms contain detailed information about various aspects of employees’ performance, behaviour, attitude, and approach exhibited during the probation period. Management takes decision of retaining or terminating the services of employee on the basis of the appraisal report. Therefore, performance appraisal for the period of probation plays vital role in the organisation, as any wrong assessment may adversely affect future of the organisation.
If reviewing authority feels that on all the major parameters the probationer has performed well but in some minor parameters he was found wanting the probation period is extended with a view to giving him an opportunity to improve. In such an event employee’s probation period is extended and his appraisal is done accordingly.
2. Appraisal for Extending the Probation Period:
While extending the probation period, the reviewing authority mentions both the strong and week areas of the probationer, areas needing improvement and the reasons for recommending extension along with the period of extension. After satisfactorily completion of the extended period of probation, performance is again reviewed for confirmation.
3. Comprehensive appraisal:
As per the system, procedure and practice prevalent in an organisation, performance of employees is reviewed at regular intervals. It is generally conducted once a year. However, in some organisations mid-term review is also done. In mid-term review, the reviewing authority elicits response, views of reviewee and communicates deficiency or excellence in his areas of performance. This helps in identifying the problems that hinder effective performance and keeps open the communication between the superior and subordinates.
4. Change in position:
In addition to regular review, some organisations review performance of employees at the time when they are due for promotion or elevation in organisational hierarchy. The performance review plays important role in taking decision about career progression of employees. Organisations also obtain self-appraisal from employees, thus giving them a fair chance to bring to the notice of the management about their achievements.

Popular methods of appraisal:
1.Ranking of all employees in a group:
Under this appraisal system, instead of reviewing performance of individual employee, performance of all the employees working in the group, division, or department is reviewed. The under line principle is that the out put or performance is the result of teamwork. Common rating is awarded to all the employees in the group. The draw back of this system is that it becomes difficult to distinguish between good and bad performers or non-performers. The good performers get frustrated and demotivated.
2. Peer Ranking:
In the peer ranking approach, performance of an employee is assessed in relation to other employees. Pitting of one employee against another creates negative impact on performance, which adversely affects collaborative environment at the work place. In case of large number of employees, it becomes difficult to rate performance of an employee objectively.
3. Ratings:
Under this system employee is rated as above average, average, and below average. Critical incidents i.e. favourable and unfavourable performance is recorded. Unless the organisation have scientific and logical rating system, subjectivity and bias plays major role in this type of performance review.
4. Weightages:
Employees’ performance is appraised on various objectives, parameters and attributes which are assigned different scores and weightage. The reviewing authority assigns scores against those objectives, attributes and parameters. The reviewee is rated on the basis of his total marks. The probability of subjectivity is minimal.
5. 360-Degree Review:
360-degree is the most comprehensive appraisal. It is multi source assessment, which includes self-ratings, peer review, and assessment by superiors. Feedback is sought from everyone. 360-degree review gives a chance to reviewee in knowing how others view his skills and style. It brings out those things, which are normally never spoken. It helps in reducing tension and improving communications, and raising employees' performance. It helps in improving communications between people.360-degree review helps in bringing out every aspect of an employee's life whether it is cooperation with people within or outside the department, attitude towards peers, subordinates, and customers. This system also helps in eliminating conflicts. The review has high employee involvement and has strongest impact on behavior and performance as it provides people with a good all-around perspective. The employee has to be psychologically matured and not to be sensitive to criticism as probability of conflict arising out of adverse feed back from peers may strain interpersonal relations.
Self- Appraisal:
Self- Appraisal is based on the idea that no one knows the job better than the person performing it, therefore his involvement is essential. He is expected to narrate his achievements Vis-à-Vis key responsible areas, outstanding performance; self perceived training needs, constraints, areas of strength, weakness and factors that may improve performance. Self- appraisal enhances dignity and self-esteem of employees and plays important role in his development.
Self-appraisal is doing self-introspection and genuine analysis of one’s own performance. It is identification of individual’s strengths and weakness .It gives employee an opportunity to analyse the causes of his success and failures, and how to become an effective performer. The general impression is that self-appraisal tends to exaggeration and employees rate themselves high. However, studies have shown that most employees find it difficult to evaluate their own performance and they tend to under rate their performance.
Self-appraisal is a kind of feedback to management about on the job and off the job problems, difficulties faced by employee in discharging duties and responsibilities. It is an opportunity to employee to bring to the notice of management his outstanding performance and achievements which might have been overlooked by the authority reviewing the performance.
Role of Supervisor / Appraiser:
The immediate supervisor who does the actual appraising has to be familiar with the basic techniques of appraisal and should avoid problems that can cripple an appraise. Appraiser has to be fair in his judgment. He should be able to judge whether the employee could have put in more effort in work, or could have made better use of the resources available to him. He should know the difficulties and also the constraints under which employee worked. Adequate credit is to be given for ability of performing more than one task i.e. shouldering multi tasking responsibilities, handling special assignments during the review period. Appraising authority has to gain the respect and confidence of his subordinates.
Problems in Appraisal:
1.Halo Effect:
While reviewing the performance it is necessary that reviewing authority have a comprehensive view of subordinate’s, personality, strengths, weaknesses, specific traits, work environment, relationship with superiors, peers, subordinates. In many cases while reviewing the performance, the reviewer is influenced by one particular quality or performance parameter of his subordinate and may rate him high or low, this is known as ‘Halo effect’. This is due to the strong bias towards the revieeew. Thus the ratings based on one-trait are unrealistic. The problem occurs with employees when they are friendly or unfriendly with supervisor.
In the study conducted by Heneman, Greenberger & Anonyou (1989) it was found that subordinates are divided into ‘ two groups: in-groupers and out-groupers’. In groupers are those subordinates who are favoured by their supervisors. They enjoy "a high degree of trust, interaction, support and rewards" in their relationship with the boss.
On the other hand, out groupers do not do as well. They appear to be permanently out of favour and are likely to bear the brunt of supervisory distrust and criticism. Supervisors tend to judge them as either good or bad.
It was found that when an in grouper did poorly on a task, supervisors tended to overlook the failure or attribute to causes such as bad luck or bad timing; when they did well, their success was attributed to effort and ability. But when an out grouper performed well, it was rarely attributed to their effort or ability. And when an out grouper performed poorly, he was termed as lazy or incompetent. This bias lead to a distortion of the appraisal process, and results into a source of frustration for those employees who are discriminated against.{ Heneman, R.L., Greenberger, D.B. & Anonyou C., (1989) Attributions and exchanges: the effects of interpersonal factors on the diagnosis of employee performance, Academy of Management Review, Vol. 32, No 2.}
2.Central Tendency:
Some appraisers do not prefer to give high or low marks against any parameter. As they do not want to spoil personal relations with low performers and do not want good performers to get rewards. They play safe and rate every employee as average. This tendency is known as ‘Central Tendency’. They have a preconceived notion that subordinates given a high rating may expect immediate rewards or employees given a low rating will become troublemakers. This reflects self-inadequacy of appraiser.
3.Leniency:
With a view to appear ‘ nice’ to the reviewees, reviewing authority assigns high marks leniently on all parameters, sacrificing objectivity. This defeats the spirit behind performance review.
4 Strictness:
The problem occurs when a supervisor has a tendency to rate all subordinates low.
5.Bias:
It is the tendency to differentiate employee on the basis of age, race, and sex while appraising. Even previous performance can also affect the evaluation of current performance.
6. Disruptive bias Matthew effect:
It is named after the Matthew of biblical fame who wrote, "To him who has shall be given, and he shall have abundance: but from him who does not have, even that which he has shall be taken away."In performance appraisal, the Matthew Effect is said to occur where employees tend to keep receiving the same appraisal results, year after year. That is, their appraisal results tend to become self-fulfilling: if they have done well, they will continue to do well; if they have done poorly, they will continue to do poorly. The Matthew Effect suggests that no matter how hard an employee strives, their past appraisal records will prejudice their future attempts to improve.
{Gabris, G.T. & Mitchell, K., (1989), The impact of merit raise scores on employee attitudes; the of performance appraisal, Public Personnel Management, Vol 17, No 4 (Special Issue).}
7.Other flaws:
Instead of reviewing the performance for the total period of review, reviewing authority sometimes assigns marks on the basis of the recent past performance. Some reviewing authority tend to review performance of their subordinates on the basis of how their own performance is going to be evaluated. Some reviewing authorities consider performance review as an opportunity to settle scores. Many reviewing authorities do not rate subordinates better as they apprehend that the subordinate if elevated may supersede him. In those cases where two persons in the same grade and rank work together and one person by virtue of holding position perform the functions of reviewing authority, the reviewing authority underrates colleague, as the person is a direct competitor in career progression. While appraising performance of employee, a prudent reviewing authority should be free from all above flaws, personal prejudices and errors. His biggest challenge is self-discipline, to be more objective while evaluating performance of his subordinate.
Performance review in Banks:
In most of the nationalised banks in India, performance is reviewed once a year. Banks adopt two-tier system for performance review. The immediate superior under whom a person works first reviews performance. Thereafter, an authority higher than the one who had evaluated the performance evaluates performance of the concerned employee on the same parameters. The objective is to have fairness in appraisal. Both the authorities award numerical marks. Thereafter average of marks allotted by both the authorities is worked out and grading is done on the basis of pre decided range mentioned the review format. In banks, performance review system is a closely guarded system and is considered to be confidential. Generally no discussion is done with the employee at the time of review. Hardly any feed back about performance is given to him and employee remains in dark.
Following are the important parameters on which performance of an individual is evaluated;
1. Knowledge level of employees. :
Progress of an organisation depends on efficiency, knowledge and competency of its staff. Employee’s performance is directly linked to his knowledge of rules, regulations intricacies about the job, economic development and opportunities. Hence one of the important parameters in performance evaluation is Job Knowledge of the reviewee, his ability to learn new things and approach towards work.
2.Work performance:
An employee knows well in advance his key responsible areas and expectations of management, as the immediate superior in consultation with the employee decides it. Hence, another important factor in appraising performance is evaluation of actual performance with the agreed one. Whether business growth and cost control were in accordance with the agreed and accepted targets?
3. Attitude, Behaviour and Personality:
Attitude and behaviour of an employee affects the work environment and image of the organistion. It also has impact on business and customer service. Therefore while reviewing the performance reviewing authority judges employees willingness to assume responsibilities, level of dependency during difficult or challenging situation, his stamina and stress tolerance ability, honesty and integrity, initiative-and innovative approach, maintaining interpersonal relations, approach towards superiors, peers, subordinates, customers and coordination with other segments of organisation for achieving business goals without shirking responsibility.
4.Leadership:
Working in organisation is not performing in isolation .It is a teamwork. Without the support and cooperation of superiors, peers, and subordinates work cannot be performed effectively. Leadership plays an important role in motivation, harnessing dormant abilities and talent and promoting mutual trust and respect. A leader can make or mar the institution. Therefore leadership qualities have major role to play in achieving corporate goals and objectives.
Reviewing authorities therefore evaluate employee’s ability in development of team spirit, approach towards delegation of responsibilities, capacity to lead in crisis and quality, prudence, quickness, consistency in decision-making and ability of maintaining congenial work environment.
5.Administrative skills:
It covers enforcing punctuality and discipline at the place of work and judicious use of infrastructure. Handling grievances and ability of counseling.
6. Observations and Opinion of Reviewing authority:
As an employee remains in close contact, observation and supervision of the reviewing authority. Therefore, he knows positive and negative traits of employee, his ability to shoulder higher responsibilities, his areas of interest and training needs and how can he be made a better and excellent performer, in which assignment his latent /dormant capabilities can be best utilised so on so forth. Thus these observations in performance appraisal plays important role for taking managerial decisions.
Role of Reviewing Authority:
Success of any system depends on its credibility. The quality of appraisal process depends amongst others, on the nature of day-to-day “supervisor–subordinate relationship”. Without a good supervisor– subordinate relationship, no performance appraisal system can be effective and meaningful. The performance review should be objective. Reviewing Authority has to play basic role of developer of human resources i.e. his subordinate(s) working under him. Therefore, endeavour has to be made by him to integrate needs of the institution and individual growth & development of reviewee.
Conclusion:
Performance appraisal is a part of career development and the main object is to continuously improve employees’ performance, by giving them feedback on performance and improving performance by imparting training, which in turn helps in improving overall performance of the institution. Unfortunately in most of the organisations performance appraisal is used as a tool for revising salaries. With a view to eliminating probability of injustice due to central tendency, hallo effect, bias etc., some organisations also seek reports on performance of employees from different persons under whom or with whom the person had worked. For making the whole performance management process meaningful the entire system needs to be formalised and documented. The efforts have to be made to improve the performance in view of high competitive environment and on the other hand to retain the talent available in the organization. Good organisations seek to improve employee productivity through personal development and their enhanced involvement in operational matters.