Once the project has been planned and the project  proposal  has been developed  and accepted  and required funds  or resources   obtained  the challenges  ahead is project  Implementation.

The challenge  is to undertake  project activities  with the budget  time schedule  and the scope  ‘’’ the objective  have been achieved  and  these objective  can be sustained after the project  is terminated.

The activities in project  implementation  include  building  deliverable  monitoring , controlling  , time  management , cost  management, procurement management , risk management  and quality management.


  1. Prepare for project formulation and implementation involves the following
  • Obtaining approval of the project proposal document  g. donor  , government.
  • Selecting and appointing the project  team leader  who will  assume  responsibility for subsequent  for the following  steps  of implementation.
  • Recruit the staff  g. secret  a project and recruit  member  staff.
  • Prepare operational  budget  for the first  phase  of the project.
  • Order equipment and supplies which are known  to take  a long time  to procure.

Importance of keeping records  for implementation  purpose.

  1. Account of programs kept in an orderly way. To measure the progress of the concern or to find  our certain  other facts , a history   of the firm  is needed . the past record , history  of the project , recount the dealings.
  2. Proper study of the position of the project . the preserved record  are the contributory  factors  without which  a good  proper  study  of the position  of the firm cannot be made  and statement cannot be prepared.
  3. Comparison of project. past record make it easy and possible  to compare  the performance  of one period with that of another  period by comparison  , one can know  there is  progress or not.
  4. Policy making. Past record , events , progress etc are very necessary  to decide future  policies  and lans  . in the absence  of record  the policies  and plans may not be successful.
  5. Legal requirement. Certain records are to be kept for a number of years  from the legal point of view.
  6. Evidence . records are good evidence in the court of law, in the case of suit.


Revision questions.

  • What is project implementation?
  • Describe project implementation process?
  • Explain the importance of keeping records  for implementation purpose.
  • Importance of keeping records for implementation purpose.
  1. Account of programs kept in an orderly way. To measure the progress of the concern or to find our certain  other facts , a history   of the firm  is needed . the past record , history  of the project , recount the dealings.
  2. Proper study of the position of the project . the preserved record are the contributory  factors  without which  a good  proper  study  of the position  of the firm cannot be made  and statement cannot be prepared.
  3. Comparison of project. past record make it easy and possible  to compare  the performance  of one period with that of another  period by comparison  , one can know  there is  progress or not.
  4. Policy making. Past record , events , progress etc are very necessary  to decide future  policies  and plans in the absence  of record  the policies  and plans may not be successful.
  5. Legal requirement. Certain records are to be kept for a number of years from the legal point of view.
  6. Evidence records are good evidence in the court of law, in the case of suit.

Implementation purpose.


1. Organizing

In order to implement  the plans  a sound  organization structure is required. Organizing  is the process of allocating  tasks  among  the members  of the group, establishing  authority-responsibility relationships  among  them and integrating  their  activities  towards  the common  objectives.

Job description

The data is collected through job analysis provides the basis for preparing job description and job specification. Job description is a functional description of what the job entails. It is descriptive in nature and defines the purpose and   scope of a job.

Job  description is a written  record  of the appropriate and authored  contents of a job, it is a factual and organized statements describing  the job  in terms  of its title, location duties, responsibilities , working conditions, hazards and relationship with other job.

The main object of a job description is to differentiate it from other jobs and to set out its outer limits.

Uses of Job description

  • Job grading and classification.
  • Placement of new employees on a job.
  • Orientation of new employees towards basic duties and responsibilities.
  • Promotion and transfer.
  • Definition and outlining care paths.
  • Redressed of grievances relating to duties and responsibilities.
  • Work measurements and work improvement.

Contents of Job description

  1. Job identification- Job title, code number of the job, department or divisions where the job is located.
  2. Job summary – It describes the contents of a job in terms of the activities or task performed.
  3. Job duties and responsibilities. – It is the heart of job description. It describes the duties performed along with frequency of each major duty.
  4. Working condition- The physical environment of the job is described in terms of heat, light, noise level, dust and fumes.
  5. Social environment – size of work group and inter-personal interaction required to perform the job given.
  6. Machines, tools and equipment – the names of major machines, equipments and materials used in the job are described.
  7. Supervision – The extent  of supervision given  or  received  is stated  in terms of number  of persons to be supervised along with  their  job

Relation to other jobs – the jobs immediately below and above is mentioned. It provides an idea of vertical workflow and channels of promotion



Recruitment   is the process   of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.

Features of recruitment

  1. Recruitment is a process or a series of activities rather than a single act or event.
  2. Recruitment is a linking  activity  as  it brings  together  those with  jobs  (employer) and  those  seeking jobs (employees)
  3. Recruitment is positive functions as it seek to develop a pool of   eligible persons from which most suitable   ones can be selected.
  4. Recruitment is an important faction  as it makes it possible  to acquire the number  and type  of persons  necessary  for the  continued  functioning  of the organization.
  5. Recruitment is a pervasive function as all organization engages in recruiting activity.
  6. Recruitment is a two way process.

Steps in Recruitment process

  1. Recruitment process generally begins when the personnel department receives requisitions for recruitment form any department of the company. The personnel requisition contain  details  about  the  position to be filled, number  of persons to be recruited , the duties  to be performed, qualification required  from the candidate, terms and condition of employment  and time by which the person should be  availed  for
  2. Location and developing resources of required number and type of employees.
  3. Identifying the process drive employees with required characteristic.
  4. Communicating the information about the organization, the job and the terms and condition of service.
  5. Encouraging the identified candidates to apply for jobs in the organization.
  6. Evaluating the effectiveness of recruitment process.

Source of Recruitment

Internal sources

  1. Present employees – Permanent, temporary and casual employees, vacancies may be filled up from such employees through promotion, transfer, upgrading and even demotion.
  2. Retired and retrenched employees who want to return to the company may be retired.
  3. Dependent and relatives of deceased and disabled employees.

Advantages of internal source

  1. Morale and motivation of employees improve when they are assured.
  2. Suitability of existing employees can be judged better as records of their qualification and performance is already available in the organization.
  3. It promotes loyalty and commitment among employees due to sense of job security and opportunities for advancement.
  4. Present employees are already familiar with the organization and its policies.
  5. The time and expenditure of recruitment are reduced as there is little need for advertising vacancies.
  6. Relation with trade unions remains good because union prefer internal recruitment.
  7. Filing of higher levels job through promotions within the organization helps to retain talented and ambitious employees.

Disadvantaged of internal recruitment

  1. It may lead to inbreeding
  2. It discourages flow of new blood into the organization.
  3. If promotion is based on seniority, really capable persons may be left out.
  4. Choice in selection is restricted more talented outsiders may not be employed, mobility of labour is restricted.
  5. Chances of favoritism are higher and growth of business is restricted by the limited talents of insiders.
  6. This source of recruitment is not available to a newly established enterprise.

Internal sources

  1. Educational and training institutions- Various institutes like Aims, Its engineering colleges, medical colleges. They provide facilities for campuses interviews and placement.
  2. Recruitment Agencies – Several private consultancy firms perform recruitment function on behalf of clients companies by charging fee.
  3. Employment exchange- these exchanges provide information about job vacancies to the job seekers and help employers in identifying   suitable candidates.
  4. Press advertisement- Advertisement in newspaper and journals is a wide source of recruitment.

Advantages of External recruitment

  1. People having the requisite skills, education and training can be obtained.
  2. As recruitment is done from a wider market best selection can be made irrespective of caste, sex or religion.
  3. Expertise and experience form other organization can be brought.
  4. It helps to bring   new  bulled and new  ideas into the organization.
  5. This source of recruitment never dries up it is available to even enterprises.

Disadvantages of eternal recruitment

  1. It is more expensive and time consuming to recruiter people from outside.
  2. The employee being unfamiliar with the organization their orientation and training is necessary.
  3. If higher levels jobs are filled from eternal sources motivation and loyalty of existing staffs are affected.

Sources of recruitment can be evaluated and the most appropriate source can be chosen on the basis of the following criteria.

  1. Time lag between personnel requisition and placement.
  2. Field rationale number of applications divided by the number of persons selected.
  3. Employee reaction towards different sources of recruitment.
  4. Correlation between source of recruitment and job success of the persons selected.
  5. Data on labour turnover.
  6. Cost per for different sources of recruitment.

Methods of Recruitment

  1. Direct Method – Under direct recruitment scouting employee contacts, manned exhibits and waiting list are used. In scouting representatives of the organization are sent to educational and training institutions. These traveling, recruiters exchange information with the student clearly their doubts, stimulate them to apply for jobs conduct interview and shortlist candidates for further screening.
  2. Indirect method – Advertisement in newspapers journals on the radio and television are used to publicize vacancies. A well thought out and clear advertisement enables candidates to assess their suitability so that only those possessing he requisite qualification will apply.
  3. Third party method – Various agencies can be used to recruit personnel


Selection is the process of choosing the most suitable person out of all the applicants. In this  process relevant  information about  applicants is collected  through  a series of steps so as to  evaluate their  suitability for the job  to be  filled.

Selection is a process of matching the qualification of applicants with the job requirements.

Selection procedure

  1. Preliminary interview- Initial screening is done to weed out totally undesirable/unqualified candidates at the outset.

Preliminary interview is essentially a sorting process in which prospective candidates are given the necessary information about the nature of the job and the organization.

  1. Application Blank- Application form is a traditional and widely used devise for collecting information from candidates. The applicant form should provide all the information relevant to selection…
  2. Selection test- Psychological test are being increasingly used employee selection- a test is a sample of some aspect of an individual‘s attitudes, behavior, and performance.

It also provides systematic basis for comparing the behavior, performance and attitudes of two more persons.

  1. Employment interview- an interview is a conversation between two persons. In selection it involves a personal observational and face to face appraisal of candidates for employment.

Selection interview serves three purposes.

  1. Obtaining information about the background, education, training work history and interest of the candidates.
  2. Giving information to candidates about him specific job and personnel policies.
  3. Establishing a friendly relationship applicant to work for the organization.
  4. Medical examination- applicants who have crossed  the above  stages are sent  for a physical  examination either to the  company’s  physician or to a medical  officer approved  for the purpose.
  5. Reference Checks- The applicant is asked to mention in his application form the names and addresses of two or three persons who know him well.
  6. Final approval – In most of the organizations selections process is carried out by the human resource department. The decision of this department is recommendatory. The candidates short listed by the department are finally approved by the executives of the concerned departments.


Training  is the process  of  increasing  the  knowledge and skills for doing   a particular  job  . It  is an  organized  procedure by which  people learn  knowledge and skills  for a definite  purpose. The  purpose  of  training  is basically  to  bridge the gap  between  job  requirement and present  competence of an  employee.

Need  for training

Training  is requiring on account  of the following reasons:

  1. Job requirement- Employees selected for a job  might  lack  the qualification required to perform  the  job   effectively. New  and inexperienced  employees require detailed instructions for  effective  performance on  the job.
  2. Technological changes – Technology is  changing  very  fast. Now  automation  and mechanization have  are been increasingly applied  in offices and service sector.
  3. Organisational viability – In order to survive  and  grow,  an organization must continually  adopt itself to the changing  environment. With  increasing  economic  linearization and  globalization, business firms  are  experiencing  expansion growth  & diversification.
  4. Internal  mobility – Training  becomes necessary when  an  employee moves from one job to another due to promotion and transfer.

Advantages of training

  1. Higher  productivity- Training  helps  to improve  the level of performance. Trained  employees perform better  by using  better  method of work.
  2. Better  quality  of work – Informal  training  , the  best  methods are  standardized  and taught  to  employees.
  3. Cost  reduction – Trained  employees make more  economical use of materials and machinery .
  4. Reduced  supervision– Well trained  employees  tend to be self –reliant and motivated.
  5. Low  accident-rate – Trained  personnel  adopt the  right  work  method   and make use of the prescribed safety devices

Reasons for training

  1. The installation of new equipment or techniques which require new or improved skills.
  2. A change in working method.
  3. A change in product , which may necessitate  training
  4. A realization that performance is inadequate.
  5. Labour shortage, necessitating the upgrading.
  6. A desire to reduce the amount of accidents.
  7. Promotion or transfer of individual employees

Benefits  of training

Training  is useful  to employees in the following  ways.

  1. Self confidence- Training  helps to improve the self  confidence of  an employee.
  2. Higher earnings- Trained employees can  perform better  and  herby earn more .
  3. Safety – Training helps  an employee to use   various  safety devices. We  can handle   the machines safety  and  become less prone to
  4. Adaptability- Training enables an employee to adopt  to changes  work  procedures and methods.
  5. Promotion – Through training  employees can develop himself  and earn promotions.


Types of Training

  1. Orientation training

Induction   or orientation  training seeks to adjust newly appointed   employees  to the work  environment. Every  new  employees need to be made fully familiar with his job, his  superior  and subordinates.

  1. Job training – It refers to the training  provided  with a view  to increase the knowledge  and skills  of an employee for improving  performance on the job.
  2. Safety training – Training provided to minimize  accidents  and damage to machinery. It  involves   instruction in the use of  safety devices and in safety  consciousness.
  3. Promotion training – It involves training of existing employees to enable them to perform higher-level job.
  4. Refresher  training – When existing   techniques become  absolute  due to the development of better  techniques employees have to be trained  in the use of new  methods and techniques with the passage   of time  employees may  forget  some of the  methods of doing  work. Refresher training   is designed to revise and refresh the knowledge and to update the skills of the existing employees.
  1. Remedial training – Such training is arranged to overcome the shortcoming in the behavior and performance of old employees.

Identifying training  needs

  1. Organisational  analysis– It  involves a study of the entire  organization in terms of its objectives, its  resources  allocation and utilization, growth  potential and  its  environment. Its  purpose  is to determine  where  training  emphasis  should be placed within the  organization
  2. Tasks or role analysis

It  is  a systematic   and detailed  analysis  of job  to identify  job  content  the knowledge, skills  and aptitudes required  and the work   behavior. On the art of the job  holder particular attention should  be paid to the tasks to  be  performed, the methods to be used, the way employees  have learnt these  methods and the performance standards  required  of employees.

  1. Manpower analysis.

In this   analysis  the persons  to be  trained  and the changes  required in the  knowledge, skills and aptitudes of an employees are determined . First, it is necessary to decide  whether  performance of an individual is substandard and  training is needed. Secondly it is determined whether the employees are capable  of being   trained.  Thirdly  the specific areas  in which  the individual  requires  training  will improve  the employees  performance or not is determined.

Objectives of training

  1. To impart to new  entrants the basic  knowledge  and skills required for efficient performance of definite
  2. To assists the employees to  function more  effectively  in their   present  position by exposing  them  to the  latest  concept, information and  techniques & developing skills they would require in their  particular
  3. To build up a  second  line  of competent  officers and  prepare  them  to occupy  more  responsible
  4. To broaden the minds   of  senior  managers  through  interchange of experience within   and outside so as  to correct  out loaded  caused to over specialization


Training methods & Techniques

  1. On-Job-Training (OJT)- In this method the trainee is placed on a regular job  and taught  the skills  necessary  to perform  The  trainee learns  under  the guidance  and supervision of the superior or an instructor.

Advantages of On Job Training

  • The trainee learns on the actual machine  in use  and in the real environment of  the  job thus  he is  better motivated to learn  and there is  no problem of  turnover of training  skills to the job.
  • This method is very  economical because  no additional  space, equipment, personnel  or other facilities are  required for training .
  • The trainee learns   the rules and regulation and procedures by observing  their  day to day
  • This is the most suitable method  for  teaching  knowledge  and skills which can be acquired  through personal observation in a relatively   short time
  • Line supervisors take an active part in training  their  subordinates .

Disadvantages of On-Job training

  • The learner finds it difficult to concentrate due to  noise  of the actual workplace.
  • This method is often  haphazard due to  noise  of the actual work-place.
  • In this method  the  trainee  may  cause  damage to costly equipment and materials.

Vestibule training–

In  this method  a training  centre called vestibule is set up and actual job  conditions are duplicated.

Advantages of vestibule  training

  1. Trainee  can  concentrate  on learning  without  disturbance  of the work place noise.
  2. The  interest  and motivation of the  trainee  are high as the real  job  conditions are  duplicated.
  3. This  method  is essential in cases, where  on the  job  training  might  result  in a  serious  injury, costly event  or the destruction of valuable  equipment and materials.
  4. Correct  method  can be taught effectively by  the trained  instructor  who  knows  how to  teach.
  5. It  permits  the trainee  to practice  without  the  fear  of being  observed  and indicated  by the superior  .
  6. It is  very   efficient  method   of training  a  large  number  of employee works.

Disadvantages  vestibule training.

  1. It  is the most  expensive  method  because  of additional investment  in classroom,,  equipment  and experts trainers.
  2. Training   situations is   somewhat  artificial  and the trainee does not  get  a  feel of  the  real  job.
  3. Separation  of training  from  the supervisory responsibilities  may  lead to problems in the organization.

 Apprenticeship Training

In this  method  theoretical instruction and practical learning are provided to  trainees in training  institutes.

Advantages  of  apprenticeship training.

  1. The  main  advantages of  this  method are that   it  combines  theory  and practice.
  2. The trainee acquires  skills which  are  valuable  in the job  market.
  3. Apprenticeship programmed provide skilled workforce to industry.

Disadvantages  of apprenticeship training

  1. Apprenticeship training  is time  consuming  and  expensive .
  2. Many  persons leave the training programmed midway as the training  period  ranges  from  one year  to five  years.
  3. Apprenticeship training  is the  oldest method of training.

Principles of training

The following  guidelines can help to make training  more  effective.

  1. Clear  objective- The  objective and scope of a training  programmed  should  be clearly defined.
  2. Training  policy a  clearly defined training  policy serves  as a guide for designing  and implementing  training  programmes.
  3. Motivation- employees tend to be most  responsive to training  programmes when  they  feel the need  to learn . Therefore  training  must be related to the  needs  and problems of the trainees  as well as to  their abilities and aptitudes.
  4. Reinforcement – According  to  BF skinner’s behavior  modification model – When behavior  is repeatedly rewarded It  becomes  a permanent part of one’s personality. Learning is more  effective  when there is  reinforcement in the form of rewards and punishment.
  5. Organized   materials- Training  material should be  properly  organized a complete outline of the whole  course  should  be distributed  in  advance  coming  to the  class.
  6. Learning  period- Learning  takes  time and teaching in segments is better  then in one  go  several  short  sessions spread  over  a long  period enables the trainee  to learn  reinforce and review.
  7. Preparing  the instructor – The  instructor  or trainer  is the key figure  in training  programme. The  trainer should not only  be a good  teacher but  must know  the subject  and the  job  also.
  8. Feedback – Trainee should be provided  with information on how much  they  learn   and how  they  are doing.
  9. Practice- Practice makes  a man perfect. Skills  that are practiced often are better learned  and less easily forgotten. Therefore, trainee should be  allowed  continuous practice.



Employee  compensation is a vital  part  of human  resource management. Wages, salaries and other forms  of employee compensation constitute a very large  component  of operating  costs. One  of the biggest   factors  affecting  industrial  relations is the   salary or wage  compensation an employee receives for a fair day ‘s work.

Objectives of wage and salary administration

  • To establish a fair  and equitable remuneration   there should be internal and  external equity  in remuneration paid to employees.
  • To attract  competent  personnel – a sound wage  and salary  administration  helps to attract qualified  and hardworking
  • To retain the present employees- By  paying at  competitive levels, the  company can  retain its  personnel . It can minimize the incidence  of quoting  and increase employee loyalty.
  • To improve cost – sound  wage and salary administration labor  and administration costs can be kept  in line  with the liability  of the company to
  • To improve productivity – Sound  wage  and salary administration helps to  improve  the motivation   and moral  of employees which in turn lead to  higher
  • To establish job  sequences  and line  of promotion whenever
  • To improve  union  management  relations- Wages  and salaries  used  on systematic  analysis  of jobs and prevailing  pay  levels are more acceptable to trade
  • To improve public  image  of the company – Wage  and salary  programme also seeks  to project the image  of a progressive employer  and to  comply  with legal  requirement relating  to wages and salaries.


Principles  of wage  and salary administration

The following   guidelines  should be followed  in the administration of wages and  salaries

  1. Wage policy should be developed keeping in view  the interests of the employer, the employees, the  consumers and the community.
  2. Wage policy  should be stated  clearly  in writing  to ensure  uniform  and  consistent
  3. Wage and salary  plans  should be consistent with the overall plans  of the company.
  4. Wage and salary plans  should  be sufficient  flexible  or responsive to changes  in internal  and external  conditions of the organization.
  5. Management should  ensure  that  employees  know  and understand the  wage policy  of the company.
  6. All wages and salary  plans  should simplify  and expedite  administrative process.
  7. All wage  and salary  decisions  should  be  checked  against the standard set in advance in the  way policy.
  8. An adequate database and a proper  organizational set up should be developed  for  compensation  determination and administration.
  9. Wage policy and programme should be  reviewed  and revised   periodically in conformity with changing

Essential s of a sound wage and structure

  1. Internal equity- It  implies a proper  relationship between wages paid for different jobs within  the company.
  2. External competitiveness-0 Wages and salaries  in the  organization should  be in line with wages and salaried  for  comparable jobs in  other organization.
  3. Build in incentives – Wage or salary  plan  should  contain  a build in incentives so as  to motivate employees to performs
  4. Link with  productivity –  Some part  of the  total  pay  should  be linked  to productivity.
  5. Maintain real  wages- At least  a part of  the increase in cost of living should  be  neutralized so as to  protect the real wages of labour.
  6. Increments – compensation policy  can be  good  motivator  if  pay  increases are  linked  with

Factors  affecting wages

  1. Demand for supply  of labour – Wages  or salary is the price  for the services rendered  by a worker.  Forces of demand  and supply of labour determine  the going  wage rate.
  2. Ability to  pay – an  organization’s  ability to pay  its employees is unimportant  determinant of wage level.
  3. Labour unions – Well  organized  trade  unions  exert  pressure  for  higher  wages  and allowance. This pressure  is exercised  through  collective  bargaining  strikes and other
  4. Cost of living – Due to inflation the real wages decline  affecting  the purchasing  owner of workers. Therefore clearness allowance is  given  according  to changes  in consumer price
  5. Prevailing wage rate- While   fixing  wages prevailing  wages in the  particular industry region are taken into
  6. Job requirement – Basic wages depend largely on the  difficult  level  and physical  and mental effort required  in particular job.
  7. Productivity- There is an increasing trend towards linking wage increases  to  gain  in  productivity or performance  or workers.
  8. State regulation- Wage policy  and laws of the  government  exercise  a significant  influence  on wage levels government  has  enacted  laws to protect  the  interest  of the working class.


Method of wage  payment

  1. Time wage system

Under  this system, wages are paid  on the  basis   of time spent on the job  irrespective  of the amount  or  work done.

Advantages of time wage system

  1. It is the simplest and the oldest  method, it is easy to understand  and compute .
  2. Earnings of worker are regular  and fixed.
  3. The land is economical as no detail records of output are required.
  4. Union prefers  time wage  as it does not  differentiate  between efficient  and inefficient workers.
  5. It is an objective
  6. The employer can calculate the wage bill in

Disadvantages of  time wage system

  1. The method provides no  incentives for  better  performance as
  2. Guaranteed remuneration makes workers in different and complacent.
  3. Calculating of labor cost per unit  is different  as the total  wage bill does not change in volume of reduction.
  4. In the absence  of an incentive to handwork, productivity  of labour becomes low unless  close  supervision is used.
  5. Control over labour  cost become difficult and more payment may be made for  the  lesser amount  of work

 Piece wage system

Under  this system, remuneration   is based on the  amount  of work done or output of a worker.

Advantages of piece  wage system

  1. There is a direct relation between effort and reward  workers who  work  hard and  produce  more  get more wages.
  2. Ambitious and efficient workers are  provided   ample  opportunity to utilize  their  talent and increase their
  3. This method  is just  and fair  to all.
  4. Management can distinguish between efficient  and inefficient  workers  for the purpose  of promotion .
  5. The cost of labour per unit of output  can be  easily calculated as the wage  varies in direct  proportion to the output.

Disadvantages of  piece  wage system

  1. It is difficult to   fix  piece  wage  rates .
  2. The earnings o f workers are not  stable and they  may suffer  due  to  temporary delay or difficulties
  3. In order to maximize  their  earnings, workers work with   excessive
  4. This system may  create jealously between efficient workers .
  5. The method may lead to industrial dispute.

Process  of wage determination

  1. Job analysis – the  data collected through  job  analysis  is used  to prepare  job  descriptions and job  On  the basis  of these statement standards of job  performance are laid down.
  2. Job evaluation – the relative  value of every job  is determined thorough  job  The relative  job  value is  then  covered into money  value so as to fix basic  wage  for the job .
  3. Wage survey – Wage  or  salary surveys are conducted  to find  out  wage/salary levels prevailing  in the region  or industry  for similarly jobs.
  4. Developing wage structure- While determining  such  structure  several  points need to be considered.
  5. Legislation relating towages.
  6. Payment equal to more  or less than  prevailing  wage
  7. Number and width of  pay grades
  8. Jobs to be placed in each pay grades.
  9. Provision for merit
  10. Differentials between pay plans
  11. Dealing with wages/salaries that  are  out of line with the
  12. Wage administration rules – rules are regulated to  determine the degraded  to which advance will be based  on length  of service  rather  than merit.
  13. Employee Appraisal – In order to reward merit and performance, it is necessary to evaluate  the performance  of individual


Meaning of wages incentives

Incentives wages refer to performance linked compensation paid  to improve motivation and productivity of employees. It implies to   monetary inducements offered to employees to perform beyond acceptance standards.

Advantages of incentive  plans

  1. It helps to make improvement in work flow, work method and man  machines relationship.
  2. It provides an opportunity for hardworking and ambitious workers to earn more.
  3. Employees are encouraged to become innovative.
  4. It helps improve discipline and industrial relations.
  5. The cost of supervision is reduced as workers themselves  are motivated to work.
  6. A spirit of mutual cooperation and  teamwork is created. Among.
  7. Wage incentives are a sound techniques of  improving


  1. Introduction and administration of incentives  plans  increase  the cost and time of clerical work.
  2. Whenever production flow  is   disrupted due to  the  faults of management, workers insist on
  3. Jealousy and conflict s among  workers  may arise  when some workers  earn  more than others

Essential of a sound  incentives plans

  • Proper climate – In the absence of  mutual trust and understanding  between  management  and  workers , a  wage incentive system maybe   viewed  as an attempt on the part of management  to coerce for production.
  • Workers participation- A wage incentive plan  should be installed in consultation with workers  and their union.
  • Scientific standard – The standards of performance  for payment of incentives should be established  through  scientific  work study  free from  bias  and
  • Guaranteed minimum wage should be guaranteed to every worker irrespective  of his
  • Simplicity – the incentive plan should be easy to understand and simple  to operate so that   a worker can  calculate   his own earnings.
  • Equitable the plan should provide  equal opportunity  to all workers  to earn  incentive pay .
  • Economical – The plan should not be very costly in operation.
  • Flexibility There should be scope for making  changes  in the scheme  to rectify  errors and to take  care of changes in technology, markets demand.
  • Prompt payment – The time gap between  actual  performance  and incentive payment  should  be a small as possible.
  • Adequate incentive – Incentive  payments under  the  scheme should be large  enough to  motivate  the worker .

 Types of wage incentives

  • Individual incentive plans
  • Group incentive plans
  • Plans  wide  incentive plans

Under  individual incentive plans, earning are related  directly  to the performance of the individual workers.

Group  incentive  schemes earning  of a group  are  related to the performance of the group as a whole. In plant  wide schemes, performance of the factory  as a whole is used as  the basis  for calculating  earning of workers

Halsey  Weir  plan

Under  this plan  a standard time  is fixed on the  basis of past  performance records. A  worker who  completes his job within  or more than the  standard time is paid a guaranteed time wage. The bonus  is calculated   on the  basis  time rate.


  1. The plan is simple to understand a worker can easily calculate  his earnings.
  2. Both the employer  and the worker get equal
  3. A guaranteed minimum  wage  to every worker  provides s a sense of security.
  4. The plan encourages  the worker  to be efficiency


  1. Standard based on past performance  may  not  be scientific  and fair.
  2. Workers get only half of the  benefit of their
  3. Much clerical  work is involved  because  records of time saved and bonus  earned has to be kept.

Rowan plan.

Under this method a minimum time wage is  guaranteed to every worker . a standard  time is determined in advance.


Lets us use the data given under  halsey we plan

Total  wages = T xR + (TxR x time  saved

Standard  time

  • 8 x 5 + (8 x5x2/10)
  • 40 + 8
  • Shs 48


The guarantee  of minimum  wage gives a  feeling of security.

Both   the employer and  the worker  share  the benefit of time saved.

The efficient  workers get bonus  or  a diminishing  rate  if  they save more than  50% of the standard time


The  plan is difficult  to understand for an average  workers.

Efficient  workers  are  discouraged to save  more than half  of the  standard time.

Emersion  efficiency plan

Under  this  plan   standard  time  for the  job  is determined  sciencetifically and a minimum  time wage  is guaranteed  to all workers. Efficiency  is measured by comparing  the  actual time taken with the standard time


Standard time(S) = 10 hrs

Time taken ( T) = 8 hrs

Time  wage (R ) sh  5 per hr

Bonus               = 10 % up to  75  % efficiency

= 20% for  75% – 100%

= 30 % beyond  100%

Total wages     = (TxR0 + Percentage by  bonus  x  R xR)

In this  case, the  efficiency is = 10/ 8 x 100 = 125

Therefore , bonus   at  30%is  payable

Total  wage = (8x 5) + 30/100 ( 8×5)

= 40 + 12

= shs  52

Worker  A = Time  taken   16 hrs bonus  Nil

Worker  B = Time  taken    14 hrs  Bonus   = 1/10 x 14 x 5

“          C = Time taken      10hrs   Bonus = 2/10 x 10x 5

”           D = Time taken       8 hrs    Bonus  = 3/10 x 8 x5


  1. It provides a sense of security to all workers .
  2. It is fair as the rate of bonus  is related to the level of efficiency .
  3. It encourages healthy  completion among
  4. Bonus begins  at  67 percent efficiency which is within the  reach of many workers.


  1. There is little  incentive after  100 percent efficiency level
  2. Employer may fix the standard/time at a low  level making  it impossible for  most of  the workers to earn
  3. The system may create  jealousy and disunity  among efficient and inefficient workers.

Bandeaux plan

Under this  method , standard  time for the job is sex scenically and it is  expressed  in terms of  B for instance a standard time of  200B means  the job  should be completed  within  200 minutes.


Total  wages = S x R x 75% of  R (S-T)


Standard  time (S)  = 240BS (4 hrs)

Actual Time taken (T) = 180 BS ( 3 hrs)

Rate  of wages ( R ) = sh 0.5 per B hr

Total  wages           = 240 x 0.50 + 75/100 x 0.5 (240 -180)

= 120 + 75 x 30


= 120 + 24.5

= 144.5

= sh 144.5


  1. Minimum wages  are guaranteed to all workers  .
  2. The foreman is motivated to increase productivity as one fourth of the value of time  saved is paid  to him.
  3. This plan  is suitable in factories wherein  a worker  is expected to perform  different types of jobs.
  4. Efficiency of different sections/workers in the  factory can be compared.


Workers may resent sharing the bonus  with foremen.

Calculations involved  are  complicated.

Much clerical work is involved.

Taylor’s different  piece  rate plan

Under  this  system , standard task is established  through time and motion study. Two  piece rate are laid  down,  the lower  rate for  those  workers who fail to  complete the  standard task within allocated  time  and higher rate  for  those  who completed  the task within  or less than  allocation time.


Suppose  the standard  output is  50 units per  day. The  piece  rate fixed are shs 2 and sh 1.50 per unit . Three workers  A,B and C produce  40, 50 and  60 units respectively during  a day. Their  total wages will be as follows.

Worker   A : 40 x shs 1.50 = sh 60

B : 50 x sh 2.00 = sh  100

C :  60 x sh 2.00 = 120

In this way an efficient workers is penalized as he gets a lower  rate per unit.


  1. It provides sufficient incentive to efficient
  2. Inefficient workers are penalized  but  encouraged  to reach the
  3. Use of time  and motion help to improve  and standardized  work
  4. Workers have not  to share the reward with the foreman


  1. There is no  guarantee  of minimum wage to
  2. The land is harsh  to workers  who are just  below  the standard.
  3. It treats workers as machines not human  being .

Group  incentive plans

Under  this  scheme bonus  is calculated for  a group of workers and the total amount is  distributed  among  the group members in preparation  to the wages earned by each.

Advantages of group  incentives plan

  1. Individual members of the group who occupy jobs  requiring special  care and attention have  not  to bear  the whole loss of slow
  2. Charges of favoritism in the assignment of tough and easy jobs are not likely to
  3. The skilled  and experienced workers are motivated to help  and train inexperienced  and new members .
  4. All these factors create teamwork and co-operative  spirit  in the group.

Profit Sharing Profit  sharing  is an important  supplement  to wages and good  financial  incentive . Profit  sharing  is  an  arrangement by which  employees receives  in  addition to wages a share fixed  in  advance  in the profits of the  enterprise.

Advantages of profit  sharing

  1. It help in improving productivity  and to reduce  cost because  workers have  a  strike in  the  profitability of  the
  2. It creates a sense of responsibility among employees.
  3. It helps in building  up a stable and contented  workforce
  4. Industrial climate  is improved due to mutual  co-operation between employer and employees  for  increasing  the net profits.
  5. It helps  to increase the earnings and standard of living  of
  6. It contributes to social  justice through  a more  equitable distribution of profit  among  employer and employee.
  7. It is a step towards industrial democracy because  workers are treated as partners in industry.

Limitation of profit sharing

  1. Profit sharing  does not  ensure  regular  income  to employees. The share  in profits is payable  only when the profit  exceeds as a specified
  2. All workers are given the same amount and distinction is med between efficient  and inefficient
  3. A share in profit is payable at long  interviewers after  the final  accounts of the company  are prepared.
  4. The determination  of profit and its  distribution  may  become a bone of contention between employer and employees.
  5. During periods of prosperity, workers  may  start  considering  the share  in profit  as a permanent



Directing  is the process of motivating,  activating , leading  and supervising  people. Directing  includes  all those  activities by which  a manager  influence the action s of subordinates,

It  involves  getting   others  to act  after all preparation has  been made. Directing  is the heart  of the management  process because  it  is concerned  with initiating  action.


It  implies  checking  verifying  and regulation  to ensure  that  everything occurs in co formality  with the plans adopted and  the instruction issued  . Such  monitoring  helps  to minimize  the gap between desired  results and actual performance.


Performance appraisal is the process of assessing the performance and progress of an employee or of group of employees on given job and his potential for future development.

Characteristics of performance appraisal.

  1. Performance appraisal is a process consisting of a series of steps.
  2. It is a systematic examination of an employee’s strength and weakness in term of the job.
  3. It is a scientific or objective study formal procedures are used in this study.
  4. It is an ongoing or continuous process where in the evaluation are arranged periodically according to a definite plan.
  5. The main purpose of performance appraisal is to secure information necessary for making objective and correct decision on employees.

Objectives of performance appraisal

  1. To provide feedback to employees so that they come to know where they stand and can improve their job performance.
  2. To provide a valid database for personnel decisions concerning placement pay, promotion, transfer punishment.
  3. To diagnose the strength and weakness of individual so as to identify further training needs.
  4. To provide coaching, counseling, career planning and motivation to subordinates.
  5. To develop positive superior subordinates relations and thereby reduce grievance.
  6. To facilitate research in personnel management.
  7. To test the effectiveness of recruitment, selection, placement and induction programmers.

Uses of performance appraisal

  1. It provides valuable information for personnel demotions, transfer and determination.
  2. It helps to judge the effectiveness recruitment, selection, placement and orientation systems of the organization.
  3. It is useful in analysis training and development needs. These needs can be assessed because  performance appraisal  reveals  people  who  require  further  training tore move  tier
  4. Performance appraisal can be used to improve performance through appropriate feedback, working and counseling to employees.
  5. Performance appraisal facilitates human resource planning, career planning and succession planning.
  6. It promotes positive work environment which contribute s to productivity.
  7. It competitive spirit is created and employees are motivates to improve their performance.

Process of performance appraisal

  1.  Establishing performance standards- The appraisal process begins with the setting up of criteria to be used for appraising the performance of the employees. The criteria are specified with the help of job analysis which reveals contents of a job. This   criteria   should be clear, objective, and in writing.
  2. Communicating the standards – The performance e standard specified in the first step are communicated and explained to the expected of them. The standards should be conveyed to the evaluators should be conveyed to the standards should be obtained.
  3. Measuring performance – Once the performance standards are specified and accepted the next stage is the measurement of actual performance. This  requires   choosing  the  rights  techniques  of measurements, identifying   the  internal  and  external  factors influencing  performance  and collecting  information on results achieved.
  4. Comparing  the actual with the standard

Actual performance is compared with the predetermined performance standards. Such comparisons will reveal the deviation which may be positive or negative. Positive deviation occurs when the actual performance exceeds the standards.

  1. Discussing the appraisal

The   results of the appraisal are communicated to and discussed with the employees. Along wish the deviation the reasons behind them are also analyzed and discussed. Such discussion will enable an employee to know his weakness and strengths

  1. Taking corrective action- Through mutual discussion with employees, the steps required to improve performance are identified and initiated. Training coaching, counseling etc are examples of corrective actions that help to improve performance.

Problems in performance Appraisal

    1. Errors in Rating – Performance appraisal may not be valid indicator of performance and potential of employees due to the following types of errors.
    2. Halo  effects – It is the tendency  to rate  an  employee consistently high  or low  on the  basis of  overall  impression..
    3. Stereotyping – This implies performing a mental picture of persons on the basis of his age, sex, caste or religion.
    4. Central tendency – It means assigning average rating to all the employees in order to avoid commitment or involvement.
    5. Constant Error- some evaluators tend to be in   assessing performance.
    6. Personal bias – Performance appraisal may become invalid because the rater dislikes an employee.
    7. Spill over effects – This arises when sat performance affects assessment of present performance.
    8. Lack of reliability – Reliability implies stability and consistency in the measurement. Lack of consistence over time and among different   raters may   reduce the reliability of performance appraisal.
    9. Incompetence- Raters may fail to evaluate performance accurately due to lack of knowledge and experience.
    10. Negative   approach- Performance appraisal loses most of its value when the focus of management is on punishment rather than on development of employees.
    11. Multiple objective- Raters may get confused due to too many objectives or unclear objectives of performance appraisal.
    12. Resistance – Trade unions may resist performance appraisal on the ground that is involves discrimination among its members.
    13. Lack of knowledge – The staff  appraising  performance  of employees  might  not be  trained  and experience enough  to make correct appraisal

Essential of an effective performance appraisal system.

  1. Mutual trust – an atmosphere of mutual trust and confidence should be created in the organization before introducing   the appraisal system.
  2. Clear objective – the objectives and uses of performance appraisal should be made clear and specific. The objectives should be relevant, timely and open.
  3. Standardization- Well defined performance factors and criteria should be developed. These factors as well as appraisal form procedures and techniques should be standardized.
  4. Training – Evaluators should be given training in philosophy and techniques of appraisal.
  5. Job relatedness- the evaluators should focus attention on job related behavior and performance of employees.
  6. Documentation- The raters should be required to justify their ratings. Documentation will encourage evaluators to make conscious effort minimizing personal biases.
  7. Feed back and participation- Arrangement should be made to communicate the rating to both employees and the raters.
  8. Individual difference – While designing the appraisal system, individual difference in organization should be recognized. Organization differs in terms of size, nature needs and environment.
  9. Post appraisal interview – After appraisal interview with the employee should be arranged. It is necessary tossup feedback to know the difficulties under which the employer work and identify   their training needs.

Methods of performance appraisal

1. Confidential Report- This is a traditional form of appraisal used in most government organization. A confidential report is a report prepared by the employees immediately supervisors/superior. It covers the strength and weaknesses, main achievement and failure personality and behavior of the employees. It involves a lot of subjectivity because appraisal is based on impression rather than on data.

2. Free form  or essay  method- Under  this  method evaluators  writes a  short essay  on the employees  performance  on the basis of overall impression.

3. Straight ranking  method

In this technique, the evaluator assigns ranks to all employees in the same work units doing the same job. Employees are ranked from the best to the poorest on the basis of overall performance.

4. Paired comparison method

This is a modified form of man to man ranking. Herein employees are compared with all the others impair at a time.

5. Forced distribution method

In these techniques the   rater is required to distribute his rating in the shorn of a normal frequency distribution. The purpose is to eliminate the rater’s bias of central tendency.

6. Graphic rating scales

It is   a numerical scale indicating different degrees of a particular taint. The rater is given a printed form for each employee to be rated. The form contains several characteristics relating to the personality and performance of employee.

7. Checklist method

A check list is alit of statement that describes the characteristics and performance of employee on the job. The rater checks to indicate if the behavior of an employee is positive or negative   to each statement.

Critical incidents method.

In this  method the  supervisor  keeps a written  records  of critical  either  good  or bad  event and how different  employees behaved during  such  events. The rating of an employee depends on his positive /negative behavior during these events.

Group appraisal method

Under this method a group of evaluators assesses employees. This group consists of immediate supervisors of the employee. The group determines the standards of performance for the job, measures actual performance on the employee.

Field review method

In this method, a   training officer from the personnel department interviews line supervisor to evaluate their respective subordinate. The interviewer prepares in advance the questions tobe asked; by answering these questions a supervisor gives his opinion about the level of performance.

Importance of keeping records  for implementation  purpose.

  1. Account of programs kept in an orderly way. To measure the progress of the concern or to find  our certain  other facts , a history   of the firm  is needed . the past record , history  of the project , recount the dealings.
  2. Proper study of the position of the project . the preserved record  are the contributory  factors  without which  a good  proper  study  of the position  of the firm cannot be made  and statement cannot be prepared.
  3. Comparison of project. past record make it easy and possible  to compare  the performance  of one period with that of another  period by comparison  , one can know  there is  progress or not.
  4. Policy making. Past record , events , progress etc are very necessary  to decide future  policies  and lans  . in the absence  of record  the policies  and plans may not be successful.
  5. Legal requirement. Certain records are to be kept for a number of years  from the legal point of view.
  6. Evidence . records are good evidence in the court of law, in the case of suit.
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