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Attracting Qualified Employees Developing Qualified Employees

Recruiting Selection Training Performance Appraisal Compensation Employee Separation

Keeping Qualified Employees

According to Flippo, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way ofreviewingand assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

Measuring Job Performance

Sharing Performance Feedback

Setting targets and goals Identifying training needs Rewarding Performance Improving performance Know the worth of an employee for an organization To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

Central tendency
all workers are rated as being average

Halo error
all workers are rated as performing at the same level in all parts of their jobs

Leniency error
all workers are rated as performing at a high level

Stringency effect Recency effect Primacy effect Stereotyping Perceptual test

Improving Job Performance Measurements Improving Job Performance Measurements

Improve Performance Improve Performance Appraisal Measures Appraisal Measures

Train Train Performance Raters Performance Raters


Objective performance measures

quantifiable outcomes (output, scrap, waste, sales, customer complaints, or rejection rates)

Subjective performance measures

trait rating scales behavioral observation scales (BOS)



Teach raters how to avoid errors Improve rating accuracy Video training and role playing often used


Managers often fail to effectively give employees performance feedback 360-degree feedback
boss, subordinates, peers, and the employee best for employee development


Define objective Decide on recipients Areas of work behavior Method of collecting data Data analysis and presentation

Provides a Clear picture Open feedback Helps to know Critical performance aspects Key development Areas Boosts Morale

Dishonest feedback Lack of action Too stressful



Transfer refers to the shifting of employees form one job to another within the same organization where salary, responsibilities and category of the new job and the previous job are almost same. Transfer of an employee can be done in other department of the same plant or office or to the same department of plant or office located in other region/city.

Transfer can be done on the request of employee due to personal reason like family problem or health problem. Due to HR policy which states that one employee can work in department or place for specific time period Transfers are common in the organizations where the work load varies timely. If an employee is not able to do the work or job assigned effectively he can be transferred to the other job where he can use his skills properly according to his interest and abilities Departmental vacancies can be filled with transfer of employees from overstaffed department. Employees can be transferred to the position or department with the higher priority workload.

Types of Transfer: Production Transfer: When the transfers are being made for filling the position in such departments having lack of staff, from the departments having surplus manpower it is called production transfer. It prevents the layoffs form the organization. Also it is good to adjust existing staff rather than to hire the new one. Remedial Transfer:Remedial transfer refers to rectification of wrong selection or placement of employees. If the employee can adjust himself in the given job he can be transferred to the job where he can use his skills and abilities accordingly. Versatility Transfer:Such transfers are done to increase the versatility in the employees so that he can work different kind of jobs. This is done by transferring employee to different jobs closely related in same department or process line.. This is used as a training device. It helps employee to develop him and he is equipped for the high responsibility jobs as he is having knowledge of the whole process. Shift Transfer:In many multi-shifts jobs such as Call centres employees are transferred from one shift to another due to their personal reasons like health problem or evening college for higher studies or any family problems.

An employee separation occurs when an employee ceases to be a member of an organization. The rate of employee separations in an organization (the turnover rate) is a measure of the rate at which employees leave the firm.

There are always costs associated with employee separations. The cost may be more or less, depending on whether managers intend to eliminate the position or to replace the departing employee. Costs included in separations include: recruitment costs, selection costs, training costs, separation costs.

Some of the benefits of separations include: 1.Reduced labor costs. 2. Replacement of poor performers. 3. Increased innovation. 4. Opportunity for greater diversity. Types of Employee Separations Employee separations can be divided into two categories based on who initiates the termination of the employment relationship. Voluntary separations (quits and retirements) are initiated by the employee. Involuntary separations (discharges, layoffs, Downsizing and rightsizing. ) are initiated by the employer.

Often mismanaged Minimize problems in firing employees

firing should not be the first option firing should be for a good reason
employment at will wrongful discharge

firing should be done in private


1. 2.

Provide clear reasons for the layoffs. Get information to avoid laying off employees with critical skills. Train managers how to tell employees. Give employees the bad news early in the day. Provide outplacement services and counseling. Communicate with survivors.

3. 4.




Early Retirement Incentive Programs

offer financial benefits to encourage employees to retire. are attractive to many employees. are difficult to predict which or how many employees will use the program. may cause the company to lose valuable employees.


Loss of employees who voluntarily choose to leave the company Functional turnover (encouraged)

the loss of poor-performing employees

Dysfunctional turnover (discouraged)

the loss of high performing employees