Human Resource

Management

4 FACTORS OF PRODUCTION
Machine
Money Material Man *

WHAT IS HRM?
Management Function
HRM refers to set of programs, functions,

and activities designed and carried out in order to maximise both employee as well as organisational effectiveness.

DEFINITIONS
Integration HRM is a series of integrated decisions that form the employment

relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives.
Influencing HRM is concerned with the people dimensions in management. Since every

organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of the organization govt, business, education, health, recreational, or social action.
Applicability HRM planning, organizing, directing and controlling of the procurement,

development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.

SCOPE OF HRM
From Recruitment to Retirement of an employee in the organization

SCOPE OF HRM
HR Planning Employee Remuneration

Job Analysis & Design

Recruitment & Selection Orientation & Placement

Organisational

Training & Development

Performance Appraisals Engagement

Development Communication Welfare Safety & Health Industrial Relations

SYSTEMS APPROACH

Production Subsystem Finance Subsystem

Technical Subsystem Marketing Subsystem

HR Subsystem
Recruitment Training Compensation Performance Appraisal Union Management Org. Devp.

DIMENSIONS
Aspects
Personal Aspect

Dimensions
Human Resource Planning Employee Relations Recruitment & Selection Training & Development Performance Appraisals Placement & Orientation Employee Assessment Compensation Canteen Crches Rest & Lunch Room Housing Transport Medical &Heath & Safety Education Recreational Facilities Legal Compliance Collective Bargaining Union Management Relations Grievance & Disciplinary Procedure Settlement of Dispute

Welfare Aspect

Industrial Relation Aspect

POLICIES
Policies are general

&

PROCEDURE
Procedures give detailed

standards or parameters based on which decisions are taken.

Actions

explanation about how the policies are to be implemented.

Guidelines

ADVANTAGES

&

DISADVANTAGE

Delegation
Uniformity Better control

Curtails Freedom
Non Flexible Constant Revision

Speedy decisions
Unbiased

Creates Resistance

CHALLENGES OF MODERN MANAGEMENT

Globalization: Corporate Re-organizations: New Organizational forms: Changing Demographics of Workforce:

Changed employee expectations:

New Industrial Relations Approach: Renewed People Focus:

Managing the Managers:

Weaker Society interests: Contribution to the success of organizations:

Human Resource Planning

RIGHT NUMBER, RIGHT PLACE, RIGHT TIME

Importance

Talent Management
Preparing People For Future Expand Or Contract Cut Cost Succession Planning And Career Planning

The Process

Forecasting the Demand

Forecasting the Supply Determining Gaps Formulating Plans

Forecasting the Demand

External Challenges
Economic Developments Political, Social, Technical Changes Competition

Organizational Decisions Workforce factors

Termination, Death, Resignation, Retirements

Forecasting techniques
Expert Forecast Trend Analysis Work Load Analysis

Forecasting the Supply

Internal

Labour Supply Labour Supply

External

Determining Gaps

Demand - Supply

Formulating Plans
Recruitment Plan
Redeployment Plan Redundancy Plan Training Plan Productivity Plan Retention Plan

 Responsibility ? Role of HR

Limitations

Accuracy Support Wrong Predictions Change in plans as per need

Job Analysis

Job Analysis :- Job analysis is the process of studying and collecting

information relating to the operations and responsibilities of a specific job. The immediate products of the analysis are job descriptions and job specifications.

Job Analysis
Detailed Specific Formal

Task Duties Responsibilities

Use
HR Planning

Recruitment
Selection Training Counseling Employee Safety Performance Appraisal

The Process
Organizational Analysis

Selection of Representative
Collection of Data Formulation of Job Description & Specification

Job Description
Contents
Title Summary Activities Working conditions Working hours Salary and Incentives Social environment Reporting to/ reported by

Job Specifications
Contents
Essential Attributes (KSA) Desirable Attributes (KSA) Education Experience Age Qualification Quality Family Background

e.g. Job description

Name Department Designation Reports To Work Location Region Handled Direct Reporting Mahesh Shah Sales & Marketing Manager Business Development Vice President Mumbai Asia 36

e.g. Job description

Develops a business plan and sales strategy for Asian

Countries. Initiates and coordinates development of action plans to penetrate in new markets. To conducts reviews, to build more effective communications, to understand training and development needs, and to provide insight for the improvement for the staff. To prepare E-catalogues, Branding & Promotions. Dealership Management

e.g. Job specification

Qualifications Experience Skills Graduate/ Post Graduate in Marketing 7 10 years Excellent Leadership Skills Marketing Skills Strong communication & Convincing skills Excellent problem solving and Time management skills Self-motivated and highly organized

Recruitment
It is about attracting, interviewing and hiring new

employees.
A process of finding and attracting capable

applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.

Types
Planned Retirement, Campus, etc Anticipated Predict by studying trends in internal and external environment. Unexpected Resignation, Deaths, Accidents, Illness give rise to unexpected needs.

Constrains & Challenges

Brand Image

Unattractive Job
Conservative Internal Policies Limited Budgetary Support

Restrictive Govt. Policies

Methods of recruitment
Internal
Promotion Transfer Internal job posting

External
Internet portals Newspaper advt. Employee referral Campus recruitment Placement agencies Walk-ins

Merits & Demerit Internal sources

Economical Limited choice

Suitable
Reliable Satisfying

Inbreeding
Inefficiency Bone of contention

Merits & Demerit External sources

Wide choice Expensive

Injection of fresh blood

Motivational force Long term benefits

Time consuming
De motivating Uncertainty

Evaluation of Recruitment
1. Time Lapse Data
Requisition to Search Search to Short listing Short listing to Interview Interview to Offers Offer to Acceptance
10 Days 7 Days 10 Days

3 Days
3 Days

33 Days

Evaluation of Recruitment
2. Yield Ratio Leads to short listing Short listing to interview Interview offers Offer made
5:1
4:3 3:2

1:2

(200) (40) (30) (10)

3. Other Survey

Selection

Selection is process to of picking individuals who have relevant qualification or skill to fill job in an organisation.

The process
Reception

Screening
Application Blank Selection Testing

Selection Interview
Interview Process Medical Examination

Reference Check
Hiring Decision Offer

Application Blank

Form Specimen

Selection Testing
Intelligence testing

Aptitude testing
Personality testing Achievement testing

Simulation testing
Assessment center

e.g. Assessment Form

Form Specimen

Type of Interviews
Non Directive Interview Directive/ Structure Situational Interview Behavioral Interview Stress Interview Panel Interview

e.g. Questions
Non Directive Questions: Do you consider yourself successful? What do co-workers say about you? Directive Questions: Tell me about yourself: Why did you leave your last job? What experience do you have in this field? Situational Question: Have you ever had to fire anyone?How did you feel about that? If given a situation, how would you react to it.

Team v/s Group

Positive energy Neutral energy

Shared leadership role

Individual and mutual

Strong leader
Individual accountability Delegates

accountability Discusses & decides together Individual efforts & collective work Joint & coordinated attempts

A function of what

members do individually

Type of Teams
Problem Solving Teams
Self Managing Teams Cross Functional Teams

Virtual Teams

Team Development
Balance Roles

Open Communication
Handling Stress Team Goals

Review Mechanism
Shared Leadership Consensus

Maslows Hierarchy of Needs

Self Actualization Needs

Esteem Needs Social Needs

Satisfied Internally

Man Seeks Growth

Safety Needs
Physiological Needs

Satisfied Externally

Herzbergs two factor theory

Hygiene
Company policy & Admin. Relationship with Superior Work Conditions Safety Relationship with Peers

Motivation
Achievement Recognition

Work itself
Responsibility Advancement

Status
Security

Growth

Theory X & Theory Y

Theory X
Dislike Work & Avoid It They Need Control &

Theory Y
Enjoy Work as Rest or

Punishments to Achieve Goals Seek Formal Direction Job Security Needs

Play Self Direction Committed to the Goal Self Actualization & Esteem Needs

How to motivate employees?

Recognize Individual Difference Match People to Jobs Use Goals Individualize Rewards Link Reward to Performance Check The System for Equity Dont Ignore Money

Non Financial Incentives

Individual Incentives
Status Promotion Responsibility

Organizational Incentives
Participation Sound Human Relation Morale Communication & Discipline

Recognition of Work
Interesting Work Job Security

Group Incentives
Social Importance to Work Team Spirit Healthy Competition

Training & Development

What is training? What is development?

Training: enhances the capabilities of an employee

to perform his or her current job

Focuses on the current job

Examples for a bank teller: Training program to correctly identify counterfeit currency Training program in the banks new computer system used by tellers to process customers transactions

Training & Development

Development: enhances the capabilities of an

employee to be ready to perform possible future jobs

Focuses on future jobs

Developmental education programs Examples for a bank teller:

Bank sends the teller to a day-long workshop on Emerging Issues in Finance & Banking Bank pays for the employee to get his or her MBA degree

Developmental job experiences Examples: job rotation or job enlargement Developmental interpersonal relationships Example: mentoring

Need & Importance

New Recruit

Promotions
Refreshers Transfer

Bridge the gap

Increase productivity New technology

Avoid mistakes/ accidents

Types of training
Skills training

Refreshers training
Cross functional training Team training

Creative training
Diversity training Literacy training

The process

Training Need Assessment

Identifying Training Objectives

Training Methods

Evaluation

Feedback

Execution

Training Cycle

Step 1: Needs Analysis/Assessment

Goal of needs analysis: Identify training needs

Summary of Needs Analysis: 3 Levels of Needs Analysis:

Organizational analysis Job and task analysis Individual analysis

Training Objectives

Needs Analysis
3 Levels of Needs Analysis: Organizational analysis: What are the training needs of the organization?

What training will support the organizations strategy? Example: Internal growth strategy (growth from new products or new markets) would be supported by training in:

Creative thinking New product development Understanding & evaluating potential new markets Technical competence in jobs

Example: What are the training needs for other strategies?

Low-cost leadership, focused (niche) concentration, external growth (mergers & acquisitions), downsizing & divesting

Needs Analysis

3 Levels of Needs Analysis (more): Organizational analysis (more)

What training will support the organizations culture, goals, & priorities? Some organizations emphasize training more than others
Learning organization: use training linked to strategic goals as a source of competitive advantage Features: Learning culture, valuing employees, flexibility & experimentation, continuous learning, critical thinking, knowledge generation & sharing

Whats your training budget?

Needs Analysis
3 Levels of Needs Analysis (more): Job and task analysis: What are the training needs of each job in the organization?

Examine the job descriptions: What tasks & duties are performed by each job? For each task:
Do new hires already know how to perform the task or will they have to be trained? (Helps to identify training needs) What are the consequences of performing the task incorrectly? (Helps to set training priorities) Can the task be learned on the job, or should it be taught off the job? (Helps to identify training methods)

Needs Analysis
3 Levels of Needs Analysis (more): Individual analysis: What are the training needs of each individual employee in the organization?
Examine each employees performance appraisal Do certain employees, or groups of employees, have job performance that might be improved by training that is costeffective?

Needs Analysis
Training Objectives: Use the 3 levels of needs

analysis to establish the training objectives for the training program

Training objectives answer the question: What will employees be able to do as a consequence of the training?

Make the training objectives specific, concrete, & measurable Example for a bank teller training program in detecting counterfeit currency:
Identify counterfeit currency correctly 100% of the time

Example for a bartender training program on underage consumption:

Check customers age, refuse service, and report attempts at underage consumption correctly 100% of the time

Training Cycle

Step 2: Design & Develop Training Program

3 Stages of Learning: Design the training program

to move employees up to Stage 3

Stage 1: Declarative knowledge (cognitive phase)

Learn facts & concepts High demands on memory & attention Performance is slow & halting Errors are common Facts & behaviors get chunked into a routine Performance begins to improve Reduced concentration is required

Stage 2: Knowledge compilation (associative phase)

Design & Develop Training Program

3 Stages of Learning (more): Stage 3: Procedural knowledge (autonomous phase)
Performance becomes automatic Performance is fluid & correct Little conscious concentration is required

But if we want to design our training program to move the trainees up to Stage 3, how do we do that?

The answer involves putting together the following concepts

Design & Develop Training Program

Preconditions for learning: Design the training

program to satisfy 2 key preconditions:

Trainee readiness: What do the trainees already know?

We want to start the training program at the right level We need to find out what they already know
Example: Does our newly hired bank teller know how to count money?

Design the training program to build on what the trainees already know

Design & Develop Training Program

Preconditions for learning (more):

Trainee motivation: Are the trainees motivated to learn?

Involve employees in the needs analysis Show trainees how the training will enhance their job performance & their careers Use goal setting: Establish specific, concrete, & measurable training goals Make the goals difficult but achievable Set intermediate & end goals Build strong self-efficacy expectations: beliefs about success Persuasion: You can do it! Modeling: show trainees successful previous trainees Enactive mastery: lead trainees to early success in training

Design & Develop Training Program

Practice: practice makes perfect

One critical key to moving to Stage 3 of learning is providing the trainees with the right kinds of practice

Take into consideration the task complexity: Simple task: practice the entire task Complex task:
Break the complex task into simple pieces Practice each of the simple pieces As performance improves, combine the simple pieces and practice the entire complex task

Distributed practice sessions work better than a massed practice session: spread the practice sessions out over multiple days with sleep between the practice sessions Overlearning is good: keep practicing well beyond the point of correct performance of the task

Design & Develop Training Program

Knowledge of results: feedback is important

Provide lots of feedback & encouragement, especially early in training

Helps build self-efficacy expectations Guide the trainee to correct performance

As performance improves, raise the performance level required for positive feedback

Encourage the trainee to strive for better performance Allows trainees to determine for themselves how theyre doing

Show trainees how to evaluate their own performance

Gradually shift from trainer-provided feedback to the trainees own self-generated feedback

Prepares the trainee to correctly use the training on the job without the close supervision of the trainers in the training program

Design & Develop Training Program

Overcome interferences: identify& resolve things

that might interfere with learning

Distractions in the training environment

Lighting problems Noise problems Temperature problems, etc.

Bad habits that the trainees bring with them into training
Identify the bad habits of the trainees early in training Correct the bad habits early in training so that the trainees practice the correct way, and not the wrong way

Design & Develop Training Program

Transfer of training: structure the training program

to enhance the transfer of training from the training program back to the job

Make the training setting similar to the work setting

Use the same equipment & processes in training that are used on the job Both how to do the task and why it is done that way

Teach both tasks & principles

Overlearning is good: provide lots of practice Use a variety of job-relevant examples

Design & Develop Training Program

Transfer of training (more): Show the trainees the relevancy of the training to their jobs Build positive self-efficacy expectations Ask trainees to develop their own action plan with goals for how they will use the training on their jobs Relapse prevention: ask trainees to anticipate what might cause them to relapse to their bad habits, and to develop their own plans to avoid the relapse

Design & Develop Training Program

Training Methods: decide which training method to use

On-the-job training (OJT): training is at the actual work site using the actual work equipment

Advantages: Enhances the transfer of training: the training setting and the work setting are the same May reduce costs: avoid the cost of a separate training facility Enhances trainee motivation: job-relevancy of training is more obvious to the trainees Disadvantages: May be disruptive to normal operations May have more distractions that interfere with learning May have safety concerns

Design & Develop Training Program

Training Methods (more): Off-the-job training: training takes place off the job at a training facility designed for training

Advantages: Avoids disruptions to normal operations Minimizes distractions Avoids safety concerns Disadvantages: Transfer of training may be more difficult due to differences between the training setting and the work setting Costs may be higher due to the cost of the training facility Trainee motivation may be reduced because the job-relevancy of the training is not as obvious

Design & Develop Training Program

Training Methods (more): Off-the-job training (more):

Off-the-job training techniques: Lectures Discussions Cases Role-plays Simulations

Example: How should we set up a training program for newly hired bank tellers to teach them how to do their job? On-thejob or off-the-job?

Training Cycle

Step 3: Deliver the Training

Deliver the training that was planned

Training Cycle

 4 Levels of Evaluation

(Kirkpatrick, 1983)

Level 1: Reaction: measure the satisfaction of the trainees with the training program Satisfaction questionnaire Level 2: Learning: measure how much the trainees have learned Written tests Performance tests Simulation tests

 4 Levels of

Evaluation (more)

Level 3: Behavior: measure the trainees job performance back on their jobs Performance appraisals Level 4: Results: measure the impact on the organization Profits Costs Productivity Quality Injury rates, etc.

Training Evaluation
Evaluation designs: when do you collect data on

reactions, learning, behavior, and results?

One-shot posttest-only design: measure when training is finished: TRAIN MEASURE

Makes sense for Level 1 (Reaction) Ask the trainees to complete the satisfaction questionnaire at the end of the training program But its a poor design for the other levels of evaluation Theres no comparison group
We wouldnt know if learning, behavior, and results have changed for the better because of the training program

Training Evaluation
Evaluation designs (more): One-group pretest-posttest design: measure both before and after training: MEASURE TRAIN MEASURE

Compute the change in the measures: Learning: Did the percentage correct on the test go up? Behavior: Did the employees job performance improve? Results: Did the company improve (profits, costs, etc.)? Weakness: Were not sure if the training is the only thing that might have caused the measures to improve There might be other things that happened at the same time as the training that also affects employee behavior (job performance) and corporate results (profits, etc.)

Training Evaluation
Evaluation designs (more):

Pretest-posttest control-group design: compare the changes in a control group to the changes in the training group Control: MEASURE NO TRAIN MEASURE Training: MEASURE TRAIN MEASURE

Randomly divide employees into 2 groups: Control group: does not get training Training group: does get training Measure learning, behavior, & results in both groups before and after training is provided to the training group Compute the changes in the measures for both groups Did the training group improve more than the control group?
Learning (test scores), behavior (job performance), & results (profits, costs, etc.)

This is the strongest evaluation design

Training Evaluation
Example: Sales training program to help our sales

people increase sales

Training Group: randomly select some of the salespeople to be in the training program Control Group: the other salespeople are in the control group that doesnt receive training (at least initially) Level 1 Evaluation: Reaction

One-shot posttest-only design: administer in the training group at the end of the training a questionnaire that measures the satisfaction of the trainees with the training program

Training Evaluation
Example: Sales training (more) Level 2 Evaluation: Learning

Pretest-posttest control-group design: Control: MEASURE NO TRAIN MEASURE Training: MEASURE TRAIN MEASURE Develop a test that measures the extent to which individuals have achieved the learning objectives of the training program Before providing the training to the training group, administer the test to both the control and the training groups After training the training group, administer the test to both the control and the training groups Compare the average change in the test scores in the control group to the average change in the test scores in the training group

Training Evaluation
Example: Sales training (more)

Level 3 Evaluation: Behavior

Pretest-posttest control-group design: Control: MEASURE NO TRAIN MEASURE Training: MEASURE TRAIN MEASURE Use the organizations performance appraisal system to measure the job performance of the salespeople
Example: amount of sales, customer satisfaction ratings, etc.

Before providing the training to the training group, measure the job performance of each salesperson in both the control and the training groups After training the training group, measure the job performance of each salesperson in both the control and the training groups Compare the average change in the job performances in the control group to the average change in the job performances in the training group

Training Evaluation
Example: Sales training (more)

Level 4 Evaluation: Results

One-group pretest-posttest design: MEASURE TRAIN MEASURE Measure organizational results before training the training group Measure organizational results after training the training group Compute the change in organizational results
Organizational results could include anything that the training might affect: profits, costs, productivity, injury rates, quality, employee morale, etc.

Pretest-posttest control-group design might be possible if the organization has multiple business units Select some of the business units to be the training group that receives training initially

Training Cycle

Performance Appraisal

Performance Appraisal

Index
About Performance appraisal
Definition Meaning Objectives

Process of Performance Appraisal Methods / Techniques of Performance Appraisal

Traditional Modern

Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal

Definitions
According to Newstrom, It is the process of evaluating

the performance of employees, sharing that information with them and searching for ways to improve their performance.

Meaning
Performance appraisal is the step where the management finds out how effective it has been at

hiring and placing employees .

A Performance appraisal is a process of

evaluating an employees performance of a job in terms of its requirements.

Performance Appraisal
Performance Appraisal refers to all those procedures that are used to evaluate the

Personality
Performance

Potential

Objectives of Performance Appraisal

According to:
Employee concrete and tangible particulars about their work assessment of performance Organization measuring the efficiency maintaining organizational control.

Aims at:
Personal development work satisfaction involvement in the organization.

mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness

Objectives of Performance Appraisal

Provide a basis for promotion/ transfer/ termination:

Identify those employees who deserve promotion Or those who require lateral shift (transfer) or termination PA is used for career planning

Objectives of Performance Appraisal

Enhance employees effectiveness by helping to identify their

strengths and weaknesses and

Inform them about expected levels of performance If employees understand their roles well, they are likely to be

more effective on the job

Objectives of Performance Appraisal

Identify training and development needs:

Identifying training and development needs of employees is

necessary to prepare them for meeting challenges in their current and

future employment

Objectives of Performance Appraisal

Aid in designing training and development programs:

Identifying skills required to be developed would help in

tailor- making training and development programs

Objectives of Performance Appraisal

Remove work alienation: Counseling Employees corrects

misconceptions which might result in work alienation

Objectives of Performance Appraisal

Remove discontent: Identifying and removing factors

responsible for workers discontent would motivate them for

better work performance

Objectives of Performance Appraisal

Develop inter-personal relationships: Relations between

superior - subordinate can be improved through realization that

each is dependent on the other for better performance and

success

Objectives of Performance Appraisal

Aid wage administration: Performance appraisal can help in development of scientific basis for reward allocation, wage fixation, incentives Improve communication: Performance appraisal serves as a mechanism for communication

between superiors and subordinates

Process of Performance Appraisal

Establish Performance Standards

Performance standards serve as benchmarks against which

performance is measured
Standards should relate to the desired results of each job

Process of Performance Appraisal

Communicate the Standards

Performance appraisal involves at least two parties, the appraiser

who does the appraisal and the appraisee whose performance is being evaluated

Process of Performance Appraisal

Communicate the Standards

The appraiser should prepare job descriptions clearly; help

appraisee set his goals and targets; analyse results objectively; offer coaching and guidance to appraisee whenever required and reward good results
The appraisee should be very clear about what he is doing

and why

Process of Performance Appraisal

Measure Actual Performance Performance measures, to be helpful must be easy to

use, reliable and must report on the critical behaviors that determine performance

Measure Actual Performance

Performance measures may be objective or subjective

Objective performance measures are indications of job

performance that can be verified by others and are usually

quantitative
Subjective performance measures are ratings that are

based on the personal standards or opinions of those doing the evaluation and are not verifiable by others

Compare Actual performance with Standards and Discuss the Appraisal

Actual performance may be better than expected and

sometimes it may go off the track

Whatever be the consequences, there is a way to

communicate and discuss the final outcome

Taking Corrective Action

Corrective action is of two types One puts out the fires immediately Other strikes at the root of the problem permanently

Performance Criteria
In order to be effective, the criteria for performance appraisal

should be genuinely related to success / failure in the job and

should be amenable to objective judgement
MBO is an example of performance-based appraisal approach

that involves setting objectives and comparing performance

against those objectives

Performance Criteria
Objectives give greater freedom to both management and

the employees in deciding how performance is to be

measured

Benefits of Performance Appraisal

For the appraisee
Better understanding of his role in the organization

what is expected and what needs to be done to meet those expectations

Clear understanding of his strengths and weaknesses

to develop himself into a better performer in future

For the appraisee

Increased motivation, job satisfaction, and self-esteem Opportunity to discuss work problems and how they

can be overcome
Opportunity to discuss aspirations and any guidance,

support or training needed to fulfil those aspirations

Improved working relationships with supervisors

Benefits of Performance Appraisal

For the Management
Identification of performers and non-performers and

their development towards better performance

Opportunity to prepare employees for assuming higher

responsibilities

For the Management

Opportunity to improve communication between the

employees and management

Identification of training and development needs

Generation of ideas for improvements

Better identification of potential and formulation of

career plans

Benefits of Performance Appraisal

For the Organization
Improved performance throughout the organization
Creation of a culture of continuous improvement and

success
Conveying the message that people are valued

Process
Setting performance standards

Taking corrective standards

Communicating standards

Discussing results

Measuring standards

Comparing standards

Methods of Performance Appraisal

Traditional Methods
1. Paired comparison 2. Graphic Rating scales 3. Forced choice Description method 4. Forced Distribution Method 5. Checks lists 6. 7. 8. 9. Free essay method Critical Incidents Group Appraisal Field Review Method

Modern Methods
1. Assessment Center 2. Appraisal by Results or Management by Objectives

3. Human Asset
Accounting 4. Behaviorally Anchored Rating scales

10.Confidential Report 11.Ranking

Ranking employees by paired comparison Method

For the Trait Quality of work Person rated
As compared to C A + B + C + C + + + + + A B

For the Trait Creativity

Person rated
As compared to B C A + + A +

+ + -

- -

Graphic Rating Scale

A form is used to evaluate the performance of the

employees

A variety of traits may be used in this device, the most

common being quality and quantity of work

Easy to understand and use.

Permits statistical tabulation of scores of employees

Graphic or Linear Rating Scales

Attitude
0 5 10 15 20

No interest In work: consistent complainer

Careless: In-different Instructions

Interested in work: Accepts opinions & advice of others

10
Takes decisions promptly

Enthusiasti c about job & fellowworkers

Enthusiastic opinions & advice sought by others

Decisiveness
0
Slow to take decisions

5
Take decisions after careful consideration

15
Take decisions in consultation with others whose views he values

20
Take decisions without consultation

Forced Choice Method

This method uses several sets of paired phrases, two of

which may be positive and two negative

The rater is asked to indicate which of the four phrases is the

most and least descriptive of a particular worker

Favorable qualities earn plus credit and unfavorable ones earn the reverse

Forced choice method

Criteria 1.Regularity on the job Most Rating Least

Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular

Forced Distribution Methods

The rater is asked to appraise the employee according to predetermined distribution scale.

Two criteria used for rating are: job performance and promotability. A five point performance scale is also used without mentioning any descriptive statements.

The worker is placed between two extremes of good and bad performance.

Forced distribution method

No. of employees

10% 20%
poor

40%

20%

10%
Excellent

Below average good average Force distribution curve

Specimen of Staff Assessment Form [Descriptive Essay Type]

Staff Appraisal
Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job Section I Appraisal Of Performance Note to Appraiser 1. Appraisal must cover the period of the preceding 12 months 2. Consideration to every function & responsibility of the job 3. An objective factual assessment of an employees improvement or deterioration Section II Promotability & Potential Promotability 1. Promotion now 2. Within 2 years 3. Within 5 years 4. Unlikely to qualify for promotion Section III Career Development Section IV Section V Notes on Interview with employee Comments on & Endorsement by Reviewing Authority

Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers A B C D

Reaction Informed the supervisor immediately Become anxious on loss of output Tried to repair the machine Complained for poor maintenance

scale 5 4 3 2

Was happy to forced test

Field review method

Performance Dimension Leadership Communication Interpersonal skills Decision making subordinate ^ ^ ^ ^ ^ ^ ^ ^ peers superior customer ^

Technical skills
Motivation

^
^

^
^

^
^

Group appraisal method

Management by Objectives (MBO)

MBO emphasizes collectively set goals that are tangible, verifiable, and measurable

Focuses attention on goals rather than on methods Concentrates on Key Result Areas (KRA)

Systematic and rational technique that allows management to

attain maximum results from available resources by focusing on achievable goals

Key Elements Of MBO

Arranging Engaging
This

organizational goals in a means-ends chain

in joint goal setting

process has the following steps:

Identify KRAs Define expected results Assign specific responsibilities to employees Define authority and responsibility relationship
Conducting Conducting

periodic progress review annual performance review

MBO Process
Set organizational goals Defining performance target Performance review feedback

Performance Extremely good

Behavioral Anchored Rating Scales

Points Behavior 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.

Good Above average Average Below average Poor

6 5 4 3 2

Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can expect to unload the trucks when asked by the supervisor. Can expect to inform only a part of the customers. Can expect to take extended coffee breaks & roam around purposelessly.

Extremely poor 1

360o Appraisal System

It is a systematic collection and feedback of performance data on an

individual or group, derived from a number of stakeholders

Data is gathered and fed back to the individual participant in a clear

way designed to promote understanding, acceptance and ultimately behavior

360 degree performance appraisal

Examples of 360 degree performance appraisal method

These companies are using 360 Degree Performance Appraisal Method Wipro Infosys Reliance Industries Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH)

Confidential Report

Descriptive report

Prepared at the end of the year Prepared by the employees immediate supervisor The report highlights the strengths and weaknesses of employees

Prepared in Government organizations Does not offer any feedback to the employee

Essay Evaluation

The rater is asked to express the strong as well as weak points of employees behavior The rater considers the employees :

Job knowledge and potential Understanding of companys programs, policies, objectives etc Relation with co-workers and supervisors Planning, organizing and controlling ability Attitude and perception

Essay Evaluation

This method has the following limitations:

Highly subjective Supervisor may write biased essay Difficult to find effective writers

A busy appraiser may write the essay hurriedly without assessing properly the actual performance of the worker
If the appraiser takes a long time it becomes uneconomical from the view point of the firm

Critical Incident Technique

Manager prepares lists of statements of very effective and ineffective behavior of an employee

These critical incidents represent the outstanding or

poor behavior of the employees

The manager periodically records critical incidents of

employees behavior

Critical Incident Technique

Example:

July 20 - Sales clerk patiently attended to the customers

complaint. He is polite, prompt, enthusiastic in solving the customers problem

July 20 - The sales assistant stayed 45 minutes beyond his break during the busiest part of the day. He failed to answer store managers call thrice. He is lazy, negligent, stubborn and uninterested in work

Limitation of this technique are:

Negative incidents may be more noticeable than positive incidents.

Supervisors have a tendency to unload a series of complaints about incidents. Results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned who may be too busy or forget to do it.

Checklist

A checklist is a set of objectives or descriptive statements about the employee and his behavior.

Under weighted checklist, value of each question may be weighted. Example: Is the employee really interested in the task assigned? Yes / No Is he respected by his colleagues? Yes / No

Behaviorally Anchored Rating Scale

Combination of rating scale and critical incidence

Steps:

Collect critical incidents Identify performance dimensions Reclassification of incidents Assigning scale values to incidents Producing the final instrument

Multiple Person Evaluation Methods

Ranking method

The evaluator rates the employee from highest to lowest on some overall criteria

Paired comparison method

Each worker is compared with all other employees in a group For several traits paired comparisons are made,

tabulated and then rank is assigned to each worker

This method is not applicable when the group is large

Group Appraisal

Employee is appraised by a group of appraisers. The group consists of

Immediate

supervisor of the employee

Other

supervisors who have close contact with the

employees work.
Manager

or head of the departments. or Clients

Consultants

Field Review Technique

The appraiser goes to the field and obtains the information about

work performance of the employee by way of questioning the said individual, his peer group, and his superiors

Appraisal Interview and Feedback - Let the Employee Know Where He Stands
To help employees do a better job by clarifying what is expected of

them

To plan opportunities for development and growth To strengthen the superior-subordinate working relationship by developing mutual agreement of goals

To provide an opportunity for employees to express themselves on performance related issues

Issues in appraisal system

Formal and informal What methods?
Whose performance?

When to evaluate?

Appraisal Design

Who are the raters?

What to evaluate?

What problems?

How to solve?

Advantages
provide a record of performance over a period of time.

Can be motivational with the support of a good reward and compensation

provide an opportunity for a manager to meet & discuss performance

Provide an opportunity for an employee to discuss issues and to clarify expectations

Provide the employee with feedback about their performance

Disadvantages
If not done appropriately, can be a negative experience. very time consuming, especially for a manager subject to rater errors & biases. If not done right can be a complete waste of time.

Can be stressful for all involved

SUCESSION PLANNING SUCCESSION PLANNING

Succession planning involves identification of likely vacancies for higher level executives and locating likely successors to man such vacancies. In reality, it is management development for the executives. Purpose: Growth and survival of the organization are the responsibilities of top management. To fulfill such responsibilities each organization needs to plan management succession. Succession planning is done in different time frames to ensure the availability of right managerial personnel at the right time in the right positions for continuing organizational vitality and strength

CAREER PLANNING

Career is a succession of related jobs, arranged in hierarchical order , through which a person moves in an organization

Career can be identified as an integrated pace of vertical and lateral movement in an occupation of an individual over his employment span

WORKS MANAGER

Assistant Manager Manager (Production) (Maintenance) Jr. Works Manager Jr. Works Manager Works Manager (Assembly) Repair) (Electric Repair) Supervisor Supervisor Operators Gr.-1 Gr.-1
Fitter Turner Jointer Grinder Machinist Electrician Mechanic

Assistant

Jr. Works Manager Jr. (Spares) ( Machine

Supervisor Operators Gr.-1

Supervisor Operators Gr.-1 Operators

Welder Machinist Miller Fitter

Fitter Machinist Turner Cable Man Grinder Welder

Stages in career

job simplification
Job design technique in which jobs are broken into

relatively simple tasks. It aims at greater productivity through reduced application of mental and/or physical effort.

job rotation
A job design technique in which employees are

moved between two or more jobs in a planned manner. The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them.

Job Rotation Objectives

Reducing Monotony of the Job
Succession Planning Creating Right-Employee Job Fit

Exposing Workers to All Verticals of the Company

Testing Employee Skills and Competencies Developing a Wider Range of Work Experience

Job enrichment
Job enrichment means a vertical expansion of a job.

It is different from job enlargement.

Job enrichment makes the job more meaningful,

enjoyable and satisfying. It gives the workers more autonomy for planning and controlling the job. It also gives the workers more responsibility. Job enrichment gives the workers opportunities for achievement, recognition, advancement and growth. So, the workers are motivated to work harder.

job enlargement
A job design technique in which the number

of tasks associated with a job is increased (and appropriate training provided) to add greater variety to activities, thus reducing monotony.
Job enlargement is considered a

horizontal restructuring method in that the job is enlarged by adding related tasks. Job enlargement may also result in greater workforce flexibility.

Benefits of Job Enlargement

Reduced Monotony: Howsoever interesting the job may

appear in the beginning, sooner or later people complain of boredom and monotony. Job enlargement if planned carefully can help reduce boredom and make it more satisfying and fulfilling for the employees.
number of tasks an individual performs. There is thus an increased scope of carrying out tasks that are versatile and yet very similar in certain aspects. already been performing the task in the past, there is no great requirement for imparting of new skills. However people and time management interventions may be required. The job thus gets more motivational for the one performing it.

Increased Work Flexibility: There is an addition to the

No Skills Training Required: Since the individual has

Quality circles
Quality Circle :A group of employees who perform

similar duties and meet at periodic intervals, often with management, to discuss work-related issues and to offer suggestions and ideas for improvements, as in production methods or quality control. the framework of a companywide quality system in which small teams of (usually 6 to 12) employees voluntarily form to define and solve a quality or performance related problem. In Japan (where this practice originated) quality circles are an integral part of enterprise management and are called quality control circles.

Participative management technique within

Total quality management

Total Quality Management or TQM is an integrative

philosophy of management for continuously improving the quality of products and processes.

TQM functions on the premise that the quality of products

and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM requires the involvement of management, workforce, suppliers, and customers, in order to meet or exceed customer expectations.

COMPETENCY MAPPING
It is a process of identification of the competencies required to perform successfully a given job or role or a set of tasks at a given point of time. It consists of breaking a given role or job into its constituent tasks or activities and identifying the competencies (technical, managerial, behavioral, conceptual knowledge and attitude and skills, etc) needed to perform the same successfully.

OBJECTIVES OF COMPETENCY MAPPING

Competency mapping serves a number of purposes. It is done for the following functions:

Gap Analysis Role Clarity Succession Planning Growth Plans Restructuring Inventory of competencies for future planning

Organizations of the Future and its Design

Types Of Organizational Designs

Functional

Place

Organizational Design

Product

Multi Division

Functional Design

CEO

Marketing

Human Resource

Finance

Inventory Management

Functional Design
Oldest type of organizational design. Organization is departmentalized on the basis of functions. The activities of these departments are coordinated.

Advantages Encourages specialization Easily understood Eliminates duplication

Disadvantages Focuses on narrow set of tasks. No accountability of each function for total results.

Place Design
CEO

Europe and Latin America Division

North America And Pacific Division

UK

ITALY

USA

CANADA

Finance

Finance

Finance

Finance

Marketing

Marketing

Marketing

Marketing

Manufacturing

Manufacturing

Manufacturing

Manufacturing

Product Design World wide responsibility. Helpful for specific product or product line. Sole authority to Manager. Autonomy to make decisions. Control through the Corporate Headquarter

Advantages Focus on specific needs. Company can match its Marketing strategy. Respond quickly.

Product Design

Multi-division Design
Autonomous units.
Growth through geographic and product diversification. Sole responsibility on Manager. Each unit is self contained. Main basis of Divisionalisation is either product or territory.

Advantages Focus on end results Managerial motivation Organization size can be increased

Disadvantages Costly design Lack of functional specialization Prone to conflicts

Network Organization
A network organization by definition is a company whose management structure is inward-out versus top-down. This design goes beyond horizontal structure and totally abandons the classical hierarchical function. A Network design is sometimes called a spider web or cluster organization.

Characteristics Delayered / De-centralized Goal -setting Information Technology Communication

Formal Networks

Informal Networks

E Y K G D C B A Chain E D B A Gossip F F G H J K I

C H I B D J A

J B D C A F I

Probability

Cluster

RETRENCHMENT

It means termination of service. It is a termination for reasons other than disciplinary actions, retirement or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment. If notice and compensation are not given, the worker will not be called as retrenched. Compensation is payable for 15 days wages for every completed year of service besides one months notice or pay in lieu of notice. But employee should have completed at least one year of complete service in order to receive compensation.

LAY OFFS

Lay off is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power, coal, breakdown of machinery, natural calamity etc. It is not a termination of service. Lay off compensation can be claimed as a statutory right by the worker if he has completed one year of continuous service or has worked for 240 days on the surface or 190 days underground in 12 calendar months. Compensation payable is half of the wages.

VOLUNTARY RETIREMENT SCHEMES

VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuation. VRS in other words is a retirement before the age of retirement.