HUMAN RESOURCE MANAGEMENT

What is Human Resource Management?

Unit I

HRMHuman resource management (HRM) is the strategic and

coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

HRM

FeaturesIts features include:

• Organizational management

• Personnel administration

• Manpower management

• Industrial management

HRM• But these traditional expressions are becoming less

common for the theoretical discipline. Sometimes even employee and industrial relations are confusingly listed as synonyms, although these normally refer to the relationship between management and workers and the behavior of workers in companies.

• The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process.

HRM• HRM is seen by practitioners in the field as a

more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the overall enterprise. HRM is also seen by many to have a key role in risk reduction within organizations.

HRM (Definitions)• Synonyms such as personnel management are often used

in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions,

• Torrington and Hall (1987) define personnel management as being:

“a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled“.

• While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the

management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage“.

HRM (Academic Theory)Academic theory• The goal of human resource management is to help an

organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company (Miller, 1989).

• The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational psychology, industrial relations, sociology, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management.

HRM (Academic Theory)One widely used scheme to describe the role of HRM,

developed by Dave Ulrich defines 4 fields for the HRM function:

• Strategic business partner • Change management• Employee champion • Administration However, many HR functions these days struggle to get

beyond the roles of administration and employee champion, and are seen rather as reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value.

HRM (Business Practice)Business practiceHuman resources management comprises several

processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.

• Workforce planning • Recruitment (sometimes separated into attraction and

selection) • Induction, Orientation and Onboarding • Skills management

• Training and development • Personnel administration • Compensation in wage or salary • Time management • Travel management (sometimes assigned to accounting

rather than HRM) • Payroll (sometimes assigned to accounting rather than

HRM) • Employee benefits administration • Personnel cost planning • Performance appraisal

HRM-Environment FactorsFactors

EXTERNALEXTERNAL– POLITICALPOLITICAL– LEGALLEGAL– BUSINESS ENVIRONMENT –BUSINESS ENVIRONMENT –

• GLOBALISATIONGLOBALISATION• MERGERS & ACQUISITIONSMERGERS & ACQUISITIONS• DOWNSIZING /RIGHTSIZING DOWNSIZING /RIGHTSIZING

– NATIONAL ECONOMYNATIONAL ECONOMY– DEMOGRAPHICDEMOGRAPHIC

• Diverse workforce Diverse workforce • Knowledge workforce / intellectual capitalKnowledge workforce / intellectual capital• More Women in workforceMore Women in workforce• Changing family structureChanging family structure• Contingent workforceContingent workforce

• TECHNOLOGICALTECHNOLOGICAL– Occupational Shift Occupational Shift

(manufacturing ….. services)(manufacturing ….. services)– managing a virtual managing a virtual

workforceworkforce– training & retraining training & retraining

employees employees to to manage manage obsolescence.obsolescence.

– providing work life balanceproviding work life balance– Need based technology – Need based technology –

not not fadsfads

• Internal factorsInternal factors– UnionsUnions– Strategy, LeadershipStrategy, Leadership– Organisational CultureOrganisational Culture– Professional BodiesProfessional Bodies

The External InfluencesThe External Influences • The HRM activities don't exist in isolation. Rather, they

are highly affected by what is occurring outside the organization. It is important to recognize environmental influences because any activity undertaken in each of the HRM processes is directly, or indirectly, affected by these external elements. For example, lets say that when a company downsizes its workforce, does it layoff workers by seniority? If so, are an inordinate number of minority employees affected. Although any attempt to identify specific influences may prove insufficient, one can categorize them into four general areas - the dynamic environment, governmental legislation, labor unions and current management practice.

The Dynamic Environment of HRM It's been stated that the only thing that remains constant

during our lifetimes is change (and paying taxes!). We must, therefore, prepare ourselves for events that have a significant effect on our lives. HRM is no different. Many events help shape our field. Some of the more obvious ones include-

• globalization, • work-force diversity, • changing skill requirements, • corporate downsizing, • total quality management, • reengineering work processes, • decentralized work sites, and • employee involvement.

The Dynamic Environment of HRM

• GLOBALIZATION Globalization reflects the worldwide operations of many businesses today. One is no longer bound by continents or societal cultures.

• WORK FORCE DIVERSITY includes the varied backgrounds of employees that are present in the companies today. Homogeneity of employees, and their needs, no longer exist. The work today is more complex, requiring employees with sophisticated skills. Without them, many employees will lack the basic abilities to successfully perform in tomorrow's organizations.

The Dynamic Environment of HRM• Corporate downsizing, total quality

management, and reengineering all relate to one another. As the world changed, U.S. companies had to compete harder to maintain their leading industrial status. This meant doing things differently. In an effort to become more productive, organizations downsized to create greater efficiency by eliminating certain jobs. Of the jobs and work processes remaining, total quality management (TQM) looks at ways of improving job effectiveness. By continuously improving on methods, techniques, processes, and the like, companies made constant efforts to better what they produce. But what if what they produce, even if it's better, still doesn't satisfy the customer? In those cases, reengineering is necessary. Whereas TQM looks at new and improved ways of producing goods and services, reengineering looks at starting the processes over again from scratch. That is, instead of improving on an existing product, the organization would analyze what should be done and how they should do it. Searching for answers would not be constrained by current business practices.

The Dynamic Environment of HRM

• Decentralized work sites are quickly becoming part of many organizations. With the technologies that are available (personal computers, fax machines, modems, etc.), work that was once done on the company premises may now be more cost-effectively handled at the employee's home. Lastly,

• Employee involvement looks at how employees' work lives are changing. Involved employees now have more control over their jobs. Certain activities, like goal setting, were once the sole responsibility of managers. With employee involvement, such an action today permits participation.

Governmental Legislation • Many employees today wishing to take several

weeks of unpaid leave to be with their newborn children, and return to their previous job without any loss of seniority, have an easier time making the request. Although some employers may see such an application as negatively affecting the workflow, government legislation has given employees the right to take this leave. Laws supporting this and other employer actions are important to the HRM process.

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Legal Compliances• Shops & Establishments Registration &

Compliance• Registration &Compliance under the Factories

Act• Registration & Compliance under Provident

Fund Act• Registration and Compliance under the ESI Act• Compliance under Minimum Wages Act• Compliance under the Gratuity Act• Compliance under the Payment of Bonus Act

I. I. ObjectivesObjectives

A. Competitive A. Competitive advantage.advantage.

B. Changing trends.B. Changing trends.

C. Importance of C. Importance of measurement.measurement.

HRM in a Changing Environment

II. OverviewII. Overview

A. Functions of HRM A. Functions of HRM

B. HRM is about the B. HRM is about the people who perform its people who perform its activities.activities.

II. Overview cont...II. Overview cont...

C. Most effective HRM C. Most effective HRM programs programs

1. Not typical.1. Not typical.

2. HR is a major 2. HR is a major contributor.contributor.

II. Overview cont...II. Overview cont...

D. Status of HRM is D. Status of HRM is improving.improving.

1. More Professional1. More Professional

2. Bigger budgets2. Bigger budgets3. Senior 3. Senior managementmanagement

III. HRM Trends III. HRM Trends

A. Trend 1: productivity A. Trend 1: productivity

B. Trend 2: flexibility B. Trend 2: flexibility

C. Trend 3: internationalC. Trend 3: international

D. Trend 4: litigationD. Trend 4: litigation

E. Trend 5: workforce.E. Trend 5: workforce.

IV. HRM Measurement IV. HRM Measurement

A. The value of HRM A. The value of HRM functions.functions.

B. measurement can B. measurement can reduce cost.reduce cost.

C. which HRM practices C. which HRM practices work.work.

“Management by Measurement” System

• “Management by measurement” system—ensuring all functional business units subscribe to guidelines for sound, strategic measurement– criteria to measure

• performance (e.g., individual, team, unit)• quantity, quality, timeliness, cost-effectiveness, effects on

others• productivity• customer satisfaction• absenteeism• turnover/retention/tenure/intentions to stay/leave• employee theft

“Management by Measurement” System

• criteria to measure (continued)• violence in the workplace• job stress (e.g., role conflict, ambiguity)• job satisfaction/motivation/attitudes/commitment• creativity• perceived fairness (procedural, interactional)• error rates• accidents, health-related variables (worker stress,

injuries)• organizational citizenship behavior

HRM Functions

The Human Resource SystemR

eta

ini

ng

good

staff

Recr

uit

ment

Pro

cess

Handlin

g

pro

ble

ms

Termination of employement

32

Manage vendors, suppliers, budgets, and HR systems

Handle employees transactions and enquiries

Develop and deliver programmes that enhance the organisation’s ability to attract, develop and retain superior performers

Align HR activities and programmes with the strategic direction and business needs of the organisation

TodayToday FutureFuture

Administration

Transactions

Performance Enhancement

Strategy

40%

30%

25%

5%

% Time, Effort, Cost

20%

20%

20%

Strategy

Administration

Performance Enhancement

40%

Transactions

Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD

The Changing Face of HRHR Transaction and Administration functions are being enabled

through leading edge e-HR solutions

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HRIS, INTERNET, INTRANETS & EXTRANETS

Performance appraisal, including 360O feedback

Widespread electronic

systems

Enhanced distribution of HR policy,

news, information

Internet recruitment

Better internal communication

Maintenance of HR records

On-line training & development

Multi-site collaborative work

teams, electronically linked

• Considered to be the most important aspect of management

• Attitudes and abilities of staff have a crucial impact on the visitors experience

• Labour costs are likely to be the largest single items on the attractions budget

Human Resource Management in Tourism

Tourism industry suffers from bad reputation in HRM

• High turnover of staff

• Seasonality of demand

• Poor status of jobs

• Lack of career structures

• Unusually demanding jobs

• lack of management expertise

• Lack of widely recognized qualification and training schemes

Problems of HRM at visitor attractions

Problems of public sector attractions are often in direct

contrast to the problems mentioned before

• Low turnover of staff

• Inflexible working practices

• Fixed-wage rages

• Standardized recruitment and disciplinary procedures

Problems of HRM at visitor attractions cont.

Benefits for organisation of good HRM

• Improves performance of staff

• Provides a competitive advantage to the organization

• Contented staff provide better service to customers, encouraging repeat visitation

• Reputation for good staff will lead to increased first-time visitation

• HRM plays a part in determining the success or failure of any organisation.

HUMAN RESOURCE PLANNING

IITTMM.B.A.-IISemester (PGDM-tt)

PRODUCTIVITY

ECONOMICDEVELOPMENT

GROWTH

EFFECTIVE

UTILIZATION

OF

HUMANCAPABILITY

Human Resource Planning

• Effective planning of HR is essential to match the requirements of the job with the individual

• Right resources at the right time to meet the future organizational needs is critical

• A comprehensive and meticulous HRP process can ensure sustained growth of an organization

Human Resource Planning• Diversification or expansion, employee promotion or changes in human resource necessitates effective HRP• Organizational plans, goals, and strategies also needs effective HRP• Success in business is dependent on being able to react quickly to opportunities• Organizations must have accurate, rapid access to information about both supply of and demand for HR

Organizational Life-Cycle Stages HR Activities

LIFE-CYCLE STAGE STAFFING COMPENSATION

TRAINING AND DEVELOPMENT

LABOR / EMPLOYEE RELATIONS

Introduction Attract best technical and professional talent

Meet or exceed labor market rates to attract needed talent

Define future skill requirements and begin establishing career ladders

Set basic employee-relations philosophy of organization

Growth Recruit adequate numbers and mix of qualified workers. Plan management succession. Manage rapid internal labour market movements

Meet external market but consider internal equity effects. Establish formal compensation structures

Mold effective management team through management development and organizational development

Maintain labour peace, employee motivation & morale

Organizational Life-Cycle Stages and HR Activities

LIFE-CYCLE STAGE STAFFING COMPENSATION

TRAINING AND DEVELOPMENT

LABOR / EMPLOYEE RELATIONS

Maturity Encourage sufficient turnover to minimize layoffs and provide new openings. Encourage mobility as reorganizations shift jobs around

Control compensation costs

Maintain flexibility and skills of an aging workforce

Control labour costs & maintain labour peace. Improve productivity

Decline Plan and implement workforce reductions and reallocations, downsizing and outplacement may occur during this stage

Implement tighter cost control

Implement retraining and career consulting services

Improve productivity and achieve flexibility in work rules. Negotiate job security and employment-adjustment policies

Human Resource Planning• HRP is both a process and a set of plans

– a process by which management of an organization determines its future HR requirements– a plan to fill the future HR requirements from internal and external sources

• Assessment of human resource requirements in advance vis a vis organizational objectives, production schedules, and demand fluctuations

Human Resource Planning

• ‘The process of determining human resource requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization’ – Coleman• Relates to

– establishing job specifications– determining the number of personnel required– developing the sources of human resource

Internal vs. External

• System of matching the available resources, either externally or internally, with the expected organizational demand over a period of time• Internal Resources

– employees who are already in the organization

• External Resources– personnel who have to be recruited from outside

Objectives of HRP• Forecasting HR Requirements

– maintain the required quantity & quality of HR– turnover/attrition rates

• Effective Management of Change– coping with changes in market conditions, technology, govt. regulations et al

• Realizing Organizational Goals– expansion, diversification

• Promoting Employees– database on skill repertoire

• Effective Utilization of HR– surplus/unutilized employees vis a vis downsizing

Emergence of HRP

• Early HRP was top down, short range

• 1970s: “manpower planning”

• 1990s: aligning HR strategy with

–corporate strategy

–attention to individual career planning

Effective HRP

• An effective HRP –closes the gap between the current

situation and a desired situation in the context of an organization’s strategy

–helps cope with change and achieve organizational goals

HR Planning Levels• HRP is carried out at different

organizational levels to meet HR requirements at those levels

• Flow of communication in HRP is both ways– Top to bottom – Bottom to top

• The levels are– Corporate level planning– Intermediate level planning– Operational level planning

HR Planning Levels• Corporate-level Planning

– Culture and mission of the organization– Macro-level: changes in market conditions, technology,

strategic plan, etc– Identification of broad policy issues; employment, welfare,

development policies• Intermediate-level Planning

– SBU level, based on corporate-level HR Plan– Determining recruitment, retaining, laying off

• Operational-level Planning– Operations level plan– Training & development, recruitment etc

• Planning Short-term Activities– Management of day-to-day activities– Ensure success or failure of corporate plans– Grievance handling, etc

Environmental Scanning

impact of strategy/goals on diff. units

Forecastingquantity & quality of personnel needed

Involving Line Managersdetermining HR needs of departments

Analysis of Supplymatching current HR supply & reqmnt

HRP

PROCESSPlan of Action

recruitment, selection, training, et al

Human Resource Planning

Predict demand

Forecast internal supply Forecast external supply

Assess trends in• External labour markets• Current employees• Future organizational plans• General economic trends

Compare future demandand internal supply

Plan for dealing with predict-ed shortfalls or overstaffing

Situation Analysis• Interaction of HRM and strategic planning• The strategic plan must adapt to environmental

circumstances• HRM is one of the mechanisms of adaptation

process• Example: rapid technological changes can force

an organization to quickly identify and hire employees with new skills

• Without HR plan to support the recruitment & selection functions it would be impossible to move fast to stay competitive

Forecasting• Estimating not only ‘how many’ but also

‘what kinds’ of employees will be needed• Yields advance estimates or calculations

of the organization’s staffing requirements

• Apart from quantitative tools, a great deal of human judgement is involved

• Incredibly difficult tasks, especially in rapidly changing environment

Forecasting Techniques• Qualitative Techniques

–Expert estimate–Nominal Group Technique (NGT)–Delphi Technique

• Quantitative Techniques–Regression Analysis–Productivity Ratios–Personnel Ratios–Time Series Analysis

The Nominal Group TechniqueA small group of 4-5 people gathers around a table. Leader

identifies judgment issue and gives participants procedural instructions

Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase

Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded

Participants discuss each other’s ideas, clarifying, expanding, and evaluating them as a group

Participants rank ideas privately in their own personal order and preference

The idea that ranks highest among the participants is adopted as the group’s judgment

The Delphi TechniqueLeader identifies judgment issues and develops questionnaire

Prospective participants are identified and asked to cooperate

Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire

Leaders compiles summaries and reproduces participants’ responses

Leader sends the compiled list of judgment to all participants

Participants comment on each other’s ideas and propose a final judgment

Leader looksfor consensus

Leader accepts consensus judgment as group’s choice

Statistical Techniques NameName

Regression analysis

Productivity ratios

DescriptionDescription

Past levels of various work load indicators, such as sales, production levels, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived. Forecasted levels of the retained indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements.

Historical data are used to examine past levels of a productivity index (P):

P = Work load / Number of People

Where constant, or systematic, relationships are found, human resource requirements can be computed by diving predicted work loads by P.

Statistical Techniques NameName

Personnel ratios

Time series analysis

DescriptionDescription

Past personnel data are examined to determine historical relationships among the employees in various jobs or job categories. Regression analysis or productivity ratios are then used to project either total or key-group human resource requirements, and personnel ratios are used to allocated total requirements to various job categories or to estimate for non-key groups.

Past staffing levels (instead of work load indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate and cyclical variation, long-tem terms, and random movement. Long-term trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.

Analysing Current Supply• “How many and what kinds of employees do I

currently have in terms of the skills and training necessary for the future?”

• Are resources available – internally or externally – to fill those needs?

• Internal– skills inventory– succession planning– promotability

• External– availability of qualified labor; surplus? shortage?

Analysing Current Supply• The Skills Inventory: tool to assess current

supply of employees in terms of– skills– abilities– experiences– training

• If the current inventory exceeds the future requirements and natural attrition cannot bring down the resources to match the future requirements?

Employee Replacement Chart for Succession Planning

Managing Employee Surpluses

Source: Compliments of Dan Ward, GTE Corporation

Managing Employee Shortages

Source: Compliments of Dan Ward, GTE Corporation

HRIS• Human Resource Information System is

more than just a computerized skills inventory

• An HRIS is an integrated approach to– analysing– acquiring– storing– controlling the flow of information

throughout an organization

HRIS• Highly developed HRIS systems can

increase efficiency and response time of HRM activities

• The system might contain a programme for tracking applicants, a skills inventory, a career planning programme, employee service programmes

• One of the most common uses of an HRIS is in recruitment and tracking of applicants

Job analysis

IITTMM.B.A.-II Semester (PGDM-tt)

Unit II

Job analysisAn assessment of the kinds of skills, knowledge, and abilities needed to successfully perform each job in an

organization

71

Job Analysis• Job analysis is the systematic collection

and recording of information concerning:– the purpose of a job,– its major duties,– the conditions under which it is performed,– the contact with others that performance of

the job requires, and– the knowledge, skills, and abilities needed for

performing the job effectively.

JOB ANALYSIS OUTCOMES

– Job description

– Job specification

– Job evaluation

Job Analysis Components

• Job description– A written statement of what a job holder does, how it

is done, and why it is done• Tasks, duties and responsibilities that the job entails

• Job specification– A statement of the minimum acceptable qualifications

that an incumbent must possess to perform a given job successfully

• Knowledge, skills, and abilities required of the job holder

JOB DESCRIPTION

• Focus on the job• Written statement

– What is done– How– Why

• Includes– Job content – Environment– Conditions of

employment

TYPICAL JOB DESCRIPTION FORMATS

• Job title• Duties • Distinguishing

characteristics• Authority • Responsibilities

JOB DESCRIPTIONS ARE USEFUL FOR

• Recruiters• New hires• Performance

appraisals• Identifying essential

job functions

JOB SPECIFICATION

• Focus on the person who does the job

• Identifies minimum incumbent qualifications

• Knowledge, skills, education, experience, certification, abilities

• Personality

JOB EVALUATION

• Establish job comparability– Compensation – Relative value

• Competitive analysis

IT TAKES GOOD JOB ANALYSIS TO PERFORM

• THESE HR FUNCTIONS WELL:

• Recruiting• Selection• Strategic human

resource planning• Employee training• AND….

MORE HR FUNCTIONS NEED JOB ANALYSIS

• Employee development

• Career development• Performance

appraisal• Compensation• Safety and health• Labor relations

The Multifaceted Nature of the Job Analysis

82

• A job analysis may be based on information obtained through direct observation, interviews, diaries or questionnaires.

• A job description is a statement of the duties, working conditions, and other significant requirements associated with a particular job.

• A job specification is a statement of the skills, abilities, education and previous work experience that are required to perform a particular job.

83

Methods of Job Analysis• For existing jobs, interviews with

employees

• Interviews with supervisors

• Observation

• Combination, interviews & observation

• Structured questionnaires

• Employee journals/logbooks

Job Analysis• Unorganized data has little use.

• Only concerned with facts.

• Concerned only with the job, not the worker.

• Not “job classification”.

• Required to determine job qualifications?

• No, but planning is the key to success.

Tools used• Books and Literature

– Valid information on current job analysis and studies.

– Job analysis that are being implemented by other successful companies.

– Past and present failures and successes.

Tools cont..• Flow and Organizational Charts

– Very helpful for showing past and current information.

– Show trends and similarities.

Recruitment and Selection

IITTMM.B.A.-IISemester (PGDM-tt)

Unit II

Recruitment And Selection

• Recruitment– The process of locating, identifying, and

attracting capable applicants

• Selection process– The process of screening job applicants to

ensure that the most appropriate candidates are hired

Recruitment and Selection

We have specific objectives in recruiting and selecting:

–Identifying the right people.–Reducing the range of differences

in performance from least effective to most effective workforce.

–Keeping turnover to a minimum.

Recruitment and SelectionHow to achieve objectives:

• There is no magic answer.

• Start with a good solid job description.

• Do customer analysis.

• Analyze competitors’ workforce.

• Analyze our workforce.

• Take info from these steps and compile a profile on type of person we want.

Developing a pool of applicants:Job must be sufficiently attractive. Then we go to many sources to

recruit such as:

–College placement services.

–Trade media advertising.

–Newspaper advertising.

–Employment services.

Recruitment and Selection

• Screening and final selection:

–Comparison with our preferred employee profile.

–Interviews to assess.

–Impressions candidate makes.

–Interest in job.

–Personal characteristics.

Recruitment and Selection

Strategic Recruiting

Stages

Typical Division of HR Responsibilities

Traditional Recruiting Sources• Internal searches

• Advertisements

• Employee referrals

• Public employment agencies

• Private employment agencies

• Campus placement

• Temporary help services

• Employee leasing and independent contractors

Organizational Recruiting Activities

RecruitingRecruitingImageImage

RecruitingRecruitingImageImage

RecruitingRecruitingPresencePresence

RecruitingRecruitingPresencePresence

Training of Training of RecruitersRecruiters

Training of Training of RecruitersRecruiters

EffectiveEffectiveRecruitingRecruiting

EffectiveEffectiveRecruitingRecruiting

Strategic Recruiting Decisions

RecruitingRecruitingSource Choices:Source Choices:

Internal vs. Internal vs. ExternalExternal

RecruitingRecruitingSource Choices:Source Choices:

Internal vs. Internal vs. ExternalExternal

Organizational-Organizational-Based vs. Based vs.

OutsourcingOutsourcing

Organizational-Organizational-Based vs. Based vs.

OutsourcingOutsourcing

Regular vs. Regular vs. Flexible StaffingFlexible Staffing

Regular vs. Regular vs. Flexible StaffingFlexible Staffing

Recruiting and Recruiting and EEO/Diversity EEO/Diversity

ConsiderationsConsiderations

Recruiting and Recruiting and EEO/Diversity EEO/Diversity

ConsiderationsConsiderations

StrategicStrategicRecruitingRecruiting

StrategicStrategicRecruitingRecruiting

EEO and Diversity Considerations

Advantages and Disadvantages of Internal and External Recruiting Sources

Internal Recruiting Methods

Internet Recruiting Methods

Job BoardsJob BoardsJob BoardsJob Boards

Professional/Professional/Career Web SitesCareer Web Sites

Professional/Professional/Career Web SitesCareer Web Sites

Employer Web SitesEmployer Web SitesEmployer Web SitesEmployer Web Sites

Internet Internet RecruitingRecruitingMethodsMethods

Internet Internet RecruitingRecruitingMethodsMethods

Internet Recruiting

• Advantages– Recruiting cost

savings– Recruiting time

savings– Expanded pool of

applicants– Morale building for

current employees

• Disadvantages– More unqualified

applicants– Additional work for HR

staff members– Many applicants are

not seriously seeking employment

– Access limited or unavailable to some applicants

External Recruiting

Employment AgenciesEmployment Agenciesand Search Firmsand Search Firms

College and College and University University RecruitingRecruiting

High Schools and High Schools and Technical SchoolsTechnical Schools

LaborLaborUnionsUnions

External External Recruiting Recruiting SourcesSources

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

CompetitiveCompetitiveSourcesSources

What to Include in an Effective Recruiting Ad

Evaluating Recruiting

Evaluating Recruiting Evaluating Recruiting EffortsEfforts

Evaluating Recruiting Evaluating Recruiting EffortsEfforts

Evaluating Evaluating Time Time

Required to Required to Fill OpeningsFill Openings

Evaluating Evaluating Time Time

Required to Required to Fill OpeningsFill Openings

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Recruiting Evaluation• General Areas for Evaluating Recruiting

– Quantity of applicants– EEO goals met– Quality of applicants

• Yield ratios– A comparison of the number of applicants at one

stage of the recruiting process to the number at the next stage.

• Selection rate– The percentage hired from a given group of

candidates

Recruiting Evaluation Pyramid

Selection and Placement

• Selection–The process of choosing individuals who have

needed qualities to fill jobs in an organization.–Organizations need qualified employees to

succeed• “Good training will not make up for bad selection.”• “Hire hard, manage easy.”

HR’s Role in Selection and Placement

• Reasons for centralizing selection–Easier to have applicants in one place.–Contact with outside applicants is easier.–Managers can concentrate on operating

responsibilities rather than the selection process.

–Selection costs are lower with no duplicated efforts.

Selection Methods• Yield ratios

– A comparison of the number of applicants at one stage of the recruiting process to the number at the next stage

• Selection rate– Percentage hired from a given group of candidates

• Acceptance Rate– Percentage of rejected job offers

• Success Base Rate– Comparing percentage rate of past applicants who

were good employees to that of current employees.

Selection Terms

• Reliability– The degree to which a selection device measures the

same thing consistently (stability)• Example: an individual consistently achieves nearly identical

scores on the same exam.

• Validity– The proven relationship between a selection device

and some relevant criterion (a measure of job success)• Example: superior job performance and high employment test

scores

Selection Devices

• Written tests

– Intelligence, aptitude, ability, and interest test batteries

• Performance-simulation tests

– Selection devices that are based on actual job behaviors; work sampling and assessment centers

• Interviews

– Effective if conducted correctly

• Realistic job preview (RJP)

– Providing positive and negative information about the job and the company during the job interview

113

The case of Protection Royale 1

• The focus is on the Financial Consultancy Division of this insurance company• There had been very low turnover among the sales consultants whose job had

been to market the company’s insurance products to insurance brokers.• Recruitment was by replacement:

– advertise in the trade press– use specialist recruitment agencies– recommendations from existing staff– shortlist from applications– interviews, roles plays, psychometric testing– references

• But the job became harder as products diversified and become more complex

114

• Customers lost confidence, the company lost its position in the marketplace

• There was a big shake-up• The company recognised the need to have a more

focused product range and high-performing staff who could persuade brokers that these were worth selling on to clients.

• A new person specification emerged:– excellent product knowledge– influential and persuasive– negotiation skill

Protection Royale…... 2

115

• Furthermore, legislation introduced in 1994 required financial sales practitioners to hold various qualifications

• Therefore there was a big reduction in eligible people within the external labour market.

• Existing staff were deemed either ‘suitable’, ‘unsuitable’ or ‘possible’; many left

• Line managers tried to head-hunt replacements, but failed.

• A crisis became apparent

Protection Royale ... 3

116

• ‘Recruitment champions’ were appointed• Line managers and HR specialists were given

performance indicators relating to recruitment objectives

• A new search for direct recruits and for trainees.

• A matrix of selection methods (e.g. Application form, testing of job knowledge/ skills/attitudes, psychometric testing, interviews, simulations, presentations, references) and competencies.

Protection Royale ... 4

117

• National advertising• 7 day ‘phone-in’ interviews, followed by screening

interviews• Assessment centre based selection• Appointment of an induction manager• Thorough procedural knowledge training for all

those involved in the recruitment and selection process.

Protection Royale... 5

118

Recruitment & Selection flowing down from Corporate Strategy

• Here the objective of recruitment & section would be to recruit people who will enhance the org.’s capacity to deliver its corporate strategy.

• E.g. for an INNOVATION corp. strategy, the company would seek to recruit people with:– highly innovative behaviour– preference/ability for co-operative behaviour– relatively high risk taking– tolerant of uncertainty– moderate concern for quality of output– balanced orientation toward process and results– longer-term focus

• For a QUALITY ENHANCEMENT or COST REDUCTION corp. strategies, the patterns would be different

119

• There is a business case for building more DIVERSITY into organisations– enhances creative capability– greater flexibility in global markets– more widely equipped to face unpredictable

challenges

Recruitment & Selection driving Corporate Strategy

120

Recruitment & Selection Flowing down from Organisation Structure

Behaviours required in managers in Organic Organisations:

• networking• team building• information retrieval• innovative problem

solving

• Mgt competencies required in Organic organisations

• info search• concept formation• conceptual flexibility• interpersonal search• managing interaction• developmental orientation• self confidence• Proactiveness • achievement orientation(These may be needed by non-

managers too)

121

e.g. Recruiting people in order to help reconfigure the organisation as delayered and TEAM-BASED rather than tall.

• Therefore look for people:• who are dependable• have interpersonal skills• are self-motivated• have integrity• have leadership potential• are assertive• tolerate ambiguity• are able to cope with stress

Recruitment & Selection driving Org. Structure

• Make recruitment a two-way process

• Involve existing team members in the final selection

Training and Development

IITTMM.B.A.-IISemester (PGDM-tt)

Unit III

The Workplace Skills Strategy

Human capital is increasingly regarded as one of the major drivers of productivity, economic growth and competitive advantage.

Recognizing the importance of human capital, the training manpower sets out to generate:

• A skilled, adaptable, motivated and resilient workforce

• A flexible, efficient labour market

• A responsive strategy to meet employers needs for skilled workers

• A learned employee can retain customers and increase business & market share thro’ proper behavior and good public relations

As a demand-driven approach to human resource and skills development, the Training will build and strengthen relationships with and among workplace partners and better engage employers, unions to respond to the challenges of workplace skills development.

An organization is only as good as it’s employees.

• In order for an organization to produce professional career minded employees an investment has to be made.

What type of investment must an employer offer employees to gain this?

• An investment in training and education is a sure payoff.

Importance of Training Managers: Importance to overall business strategy Labour leaders: Importance to collective bargaining

issues

5%

22%

44%

30%

9%

29%

37%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

not/slightly important important very important crucial

managers

labour

Examples of Training Investments

Industry and government in the United States spend approximately $90 billion each year on employee training and education.

Average Japanese companies spends about 6% of budget on training.

Study of major automobile manufactures found U. S automakers spend about 40 hours training new employees compared to 300 hours for Japanese automakers.

Motorola’s CEO required all divisions to spend at least 2% of budget on training. Over next 7 years, profits increased 47% and it was estimated that each $1.00 in training yielded $30.00 in return.

TRAINING ACTIVITIES SHOULD BE

ALIGNED WITH OVERALL OBJECTIVE OF THE

ORGANISATION, WITH A MEANINGFUL EMPHASIS ON

VALUE ADDITION TO OUR

HUMAN RESOURCES.

Factors to consider

• Training to benefit organisation

• Training to benefit employees

• Training to benefit the industry

• Provide a good return on investment?

Investment

• To invest properly, the employer must provide training as one of the needed tools for employees to get the job

done.

Why Training?

• The sharing of information through training is our most valuable tool to develop our most valuable asset…our employees.

Once employees have proper “tools” in their toolbox

• They will come to work on a daily basis, with enthusiasm and the positive attitude to give a full days work for a full

days pay.

TRAININGS SHOULD AIM AT• EMPOWERING THE EMPLOYEES

• INCREASING PRODUCTIVITY

• MAKING THE PROCESSES MORE

EFFICENT AND EFFECTIVE

so as to

ENSURE ULTIMATE

CUSTOMER SATISFACTION

IMPROVE THE OVERALL

PERFORMANCE OF THE ORGANISATION.

1. Respond to technology changes affecting job requirements.

2. Respond to organizational restructuring.

3. Adapt to increased diversity of the workforce.

4. Support career development.

5. Fulfill employee need for growth.

Importance of Training – contd…

Importance of Training and Development

• Maintain skill levels

• Advance skill and knowledge to improve – Performance (efficiency)– Service delivery (error rate)– Profitability (productivity, manpower)

• Integrate new technologies into work

• Establish standards for work practices

Benefits of Training - Individuals

• Do job more efficiently – learn new methods

• Professional approach to work, engaged in best practice routines

• Personal satisfaction – felt valued

• Recognised qualification to add to CV

The Benefits of Training

• Gives the supervisor more time to manage, standardized performance, less absenteeism, less turnover, reduced tension, consistency, lower costs, more customers, better service

• Gives the workers confidence to do their jobs, reduces tension, boost morale and job satisfaction, reduces injuries and accidents, gives them a chance to advance.

• Gives the business a good image and more profit.

Benefits of Training-a summary

• Improved customer service and public relations• Fewer complaints• Better morale and attitudes• Less turnover and absenteeism• More involved and caring employees• Proactive vs. reactive employees

• MANAGEMENT’s ONE OF THE MOST IMPORTANT FUNCTIONS IS TO TRAIN PEOPLE FOR THEIR JOBS.

Then why is training often neglected?

• Urgency of need• Training time• Costs• Employee turnover• Short-term worker• Diversity of worker• Kinds of jobs (simple-complex)• Not knowing exactly what you

want your people to do and how

Attitudes to trainingIndividual:• How is that related to

what I do?• “I’m good at my job and

anyway, I have no time”• “I suppose that’s my

weekends shot for months!”

• “Are they trying to get rid of me?”

Employer:• How can I be sure the

organisation will benefit?• Training is so expensive

– how will I know if it has been effective?

• Will this effect the goal of developing and implementing standards and protocols for the organisation?

• “If I train them, they’ll leave”

Our front-line employees are often “good” will ambassadors.

• Yet they are the ones who hold the most “thankless” job. Their role and their understanding of their role is the vital key towards their development and their ability to provide

excellent customer service.

Importance of TrainingTeaching people How to do Their

Jobs:• There are three kinds of training:

Job Instruction, Retraining, and Orientation.

• The big sister/ big brother system is when a old hand dominates a newcomer.

• When good training is absent there is likely to be an atmosphere of tension, crisis, and conflict because nobody knows what to do.

I. Needs Assessment

II. Developing &Conducting

Training

III. EvaluatingTraining

Training Process Model

1. Organizational Level• Technology change.

• Organizational restructuring.

• Change in workforce.

• Marketing Plans.

• Productivity measures

2. Job Level

• Job and task analysis.

• Identify Key areas.

• Review procedural and technical manuals.

Design Training Program

3. Individual LevelDetermine who needs training and

what kind.

• Tests.

• Prior training and experience.

• Performance review.

• Career assessment.

Developing a Unit Training Program• This is taught in several sessions.• It should provide check points to

measure progress.• Should include two elements: 1. Showing and telling the

employee what to do. 2. Having the employee do it

(right).• Location should be ambient.• Training materials should be the

same as used on the job.

Who will do the Training?• The magic apron method: people

train themselves the easiest ways to get the job done.

• The person that is leaving trains: teaches shortcuts and ways of breaking the rules.

• Big sister, big brother method: passes on bad habits and may resent new person as a competitor.

• The logical person to train new workers is The employer!

How do Employees Learn the Best?

• Learning is the acquisition of skills, knowledge, or attitudes.

• The adult learning theory is a field of research that examines how adults learn. A number of the following tips come from the adult leaning theory.

How employees learn the best: • When they are actively involved in the

learning process-(to do this choose a appropriate teaching method).

• Training is relevant and practical.• Training material is organized and

presented in chunks.• Training is in an informal, quiet, and

comfortable setting.• When they have a good trainer.• When they receive feedback on

performance.• When they are rewarded.

“Tell me and I forget, teachme and I remember, involveme and I learn”

- Benjamin Franklin

How do Employees Learn the Best?

Kinds of training

• Informal – on the job, “phone a friend”

• Formal – “attendance” or “completion”

• Formal – certified, vindicated– Evidence of Return on Investment– Must be planned– Allows for customisation, relates to workplace

standards

Job Instruction Training (JIT)

• Also called on the job training.

• Consists of 4 steps:

1. Prepare the learner

2. Demonstrate the task

3. Have the worker do the task

4. Follow through: put the worker on the job, correcting and supporting as necessary.

Classroom Training Skills• Be aware of appropriate body

language and speech.• Watch how you talk to

employees. Covey respect and appreciation.

• Handle problem behaviors in an effective manner.

• Avoid time wasters.• Facilitate employee participation

and discussion.• Use visual aids to avoid

constantly referring to notes.

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING:

1. ASK QUESTIONS The only dumb questions are the ones you don’t

ask!

2. MAKE MISTAKES Training is a great place to make mistakes. The you

won’t make as many at work in the live environment!

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING Continued…

3. HAVE FUN This rule is very important

4. CHEAT Watch how other people do things or yell for help

3. Types of Training

1. Skills Training.2. Retraining.3. Cross-

Functional. 4. Team Training.

5. Creativity Training.

6. Literacy Training.7. Diversity

Training.8. Customer

Service.

Types of Training

1. SKILLS TRAINING

Focus on job knowledge and skill for:

• Instructing new hires.

• Overcoming performance deficits of the workforce.

2. Retraining

Maintaining worker knowledge and skill as job requirements change due to:

• Technological innovation• Organizational restructuring

3. Cross-Functional Training

Training employees to perform a wider variety of tasks in order to gain:

• Flexibility in work scheduling.• Improved coordination.

4. Team Training

Training self-directed teams with regard to:

• Management skills.• Coordination skills.• Cross-functional skills.

5. Creativity Training

Using innovative learning techniques to enhance employee ability to spawn new ideas and new approaches.

6. Literacy Training

Improving basic skills of the workforce such as mathematics, reading, writing, and effective employee behaviors such as punctuality, responsibility, cooperation,etc.

7. Diversity Training

Instituting a variety of programs to instill awareness, tolerance, respect, and acceptance of persons of different race, gender, etc. and different backgrounds.

8. Customer Service Training

Training to improve communication, better response to customer needs, and ways to enhance customer satisfaction.

1. Classroom Instruction

• Efficient dissemination of large volume of information.

• Effective in explaining concepts, theories, and principles.

• Provides opportunity for discussion.

• Learner does not control pace or content

• Does not consider individual differences.

• Limited practice.• Limited feedback.• Limited transfer to job.

PROS CONS

2. Video and Film

• Provides realism.• Adds interest.• Allows scheduling

flexibility.• Allows exposure to

hazardous events.• Allows distribution to

multiple sites.

• Does not consider individual differences.

• Limited practice.• Limited feedback.• Adds additional cost.

due to: * Script writers * Production specialists * Camera crews

PROS CONS

3. Computer Assisted Instruction

• Efficient instruction.• Considers individual

differences.• Allows scheduling

flexibility.• Allows active practice

for some tasks.• Allows learner control.• Provides immediate

feedback to tasks.

• Limited in presenting theories and principles.

• Limited discussion.• Transfer depends on

particular job. (Good for computer work.)

• High development cost (40-60 hours per hour of instruction at approx Rs. 10,000 per hour.)

PROS CONS

5. Simulation

• Provides realism.• Allows active practice.• Provides immediate

feedback.• Allows exposure to

hazardous events.• High transfer to job.• No job interference.• Lowers trainee stress.

• Cannot cover all job aspects.

• Limited number of trainees.• Can be very expensive (for

example, “aircraft simulators” and “virtual reality” simulators).

PROS CONS

6. On-The-Job Training

• Provides realism.• Allows active practice.• Provides immediate

feedback.• High motivation.• High transfer to job.• Lowers training cost.

• Disruptions to operations.• May damage equipment.• Inconsistent across

departments.• Inadequate focus on underlying

principles.• Lack of systematic feedback.• Transfer of improper

procedures.• Trainee stress.

PROS CONS

Performance Management

IITTMM.B.A.-IISemester (PGDM-tt)

Unit III

Introduction, Performance Objectives and Plans

What is Performance Management?

• Systematically managing all the people in an

organization, for innovation, goal focus,

productivity and satisfaction--it is a goal-

congruent win - win plan

What is Performance Management?

• Armstrong and Baron define performance management as a “strategic and integrated approach to delivering sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contributors

• It is integrated, because it effects four types of integration

– Vertical– Functional– Human Resource– Goals

What is Performance Management?

What is Performance Management?

Performance Managed Organizations are likely to have the following characteristics:

– Measurable performance targets

– Manage-learning linked with organizational goals on the one hand and with career development on the other

What is Performance Management?

– Pre-eminence of intrinsic needs of

managers without neglecting their extrinsic needs

– Ownership of performance management by line management rather than the personnel function

The Manager’s Concern and Interests

• The rationale for establishing a performance management system does, and must emerge from the managers’ concerns and interests

• To be effective, this process must start with identification and analysis of the managers’ performance problems and related management skills, in the context of the specific organization

The Manager’s Concern and Interests

– remedying poor performers and performance

– bridging gaps in performance expectations

– securing equitable rewards and punishment decisions from the management

– softening performance pressures through appropriate planning, scheduling and delegation

Key to Performance Management

• Building organizational capability and successful implementation of high-commitment management practices is a key managerial responsibility

• High-performance management practices require consistent leadership attention, while time and attention are the scarcest of resources in most organizations

Key to Performance Management

Three basic principles, which effective leaders use to transform their organizations into high-commitment models of management are:

– build trust

– encourage change

– use appropriate measures

Performance Management and People Management

• Performance management is that part of an

organization’s people-related function, which is

performed by those directly managing the

people

Performance Management and People Management

Within any organization, there are atleast two levels of effort, that

• concern the performance of its people

• and optimize individual and collective output

Performance Management and People Management

– effort at the organizational level, which

determines the organization’s internal

environment

– effort at the managerial level, which constitutes core of the leader-manager role--- what each manager does to supervise his managees

Performance Management System

• A set of sequential dynamic subsystems

• Like any system, it has relatively autonomous, but interdependent and inter-related parts, which ensure effective and smooth functioning of the total system

Performance Management System

• Three broad sub-systems:

– planning managee performance and development

– monitoring managee performance and mentoring managee development

– annual stocktaking

Organizational and Individual Performance Plans

Convergent goals and expectations in an

organization for group and individual

performance would naturally flow from the

organization’s performance plans

Organizational and Individual Performance Plans

– The organization’s mission and goals and

its long-range or strategic plans

– The organization’s annual operating plans,

circumscribing the team or project-level

performance goals

Organizational and Individual Performance Plans

• Organizational values and work ethics to

be observed in course of achieving the goals

• Organization-wide job descriptions, indicating skills and competencies needed

Organizational and Individual Performance Plans

Annual operating plans and work ethics of the organization feed into objectives and strategies of the various organizational sub-units--departments, divisions, groups, branches, teams, projects, etc, and the individual managee roles--their role descriptions and performance targets

Research Base for Performance Planning and Goal Setting

Goal setting theory

– setting goals at work can help a managee incorporate ways to meet his personal and professional needs, thereby optimizing goal congruence between him and the organization

Research Base for Performance Planning and Goal Setting

Goal setting theory

research confirms that goal-setting improves managee performance at all levels---managerial as well as non-managerial---over extended periods of time, in different kinds of organizations

Research Base for Performance Planning and Goal Setting

Goal setting theory

• According to Gordon, goals vary on three dimensions:

– specificity– difficulty– acceptance

Performance Standards

• Organizations need performance standards, at the level of individual managees as well as at the project or functional or programmatic levels

– Organizations want to standardize precise expectations

Performance Standards

•

– Managees need equitable and consistent standards for their individual performance, comparable to others in the organization, to be monitored or assessed by

Performance Standards

– Managees expect that managers

everywhere in the organization will use identical--at least similar---standards to measure the performance of competing positions

PerformancePerformanceMeasurementMeasurement

What gets measured gets done and … What gets measured becomes

important!

Performance Management – the linking pin !

•Starting with the ultimate goal and mission of the organisation.•Aligning the business units, teams and individuals

VisionStrategy

Processes

Systems

Results

Behavior and Actions

Performance Management

What employees look for – the linking pin!

Vision

Strategy

Processes

Systems

Results

Behavior and Actions

Performance Management

•Understand what is expected form them•This will lead to aligning individuals towards achievement of organisational goals

What does Performance Management Involve?What does Performance Management Involve? Achievement of strategic goals & objectives Allocation of KPI’s Facilitate employee personal development as part of a

integrated process Understanding true strengths and weaknesses at every

level of the organisation Transformation of people management into a result-driven,

strategic business function Alignment of employee goals and actions with corporate

strategy Retention of top performers and development of low

performers Increased quality and frequency of communication between

managers and employees

CEO QuestionsCEO Questions Have I set the right organisation goals to achieve my strategy?

There must be a more systematic approach we could use for goal setting.

What kind of behaviors and skills and focus should I be directing my employees to have in order to achieve these goals?

Does anyone know what behaviors will most likely help to improve our financial performance or improve customer satisfaction?

Do the employees understand my vision and strategy? Have they been clearly communicated?

Do employees buy-in to these goals and do they understand and buy-in their role or their divisions role in meeting the strategy?

CEO Questions Cont.,CEO Questions Cont.,

Is my company structured optimally to fulfill our Strategy?

Have we set up a performance incentive system that aligns with our organisation strategy? Does it include objectives that our staff care about?

Do I have the right tools, systems and processes in place, both formal and informal to support performance related communication?

Isn’t there some form of automation that can give me more detailed, relevant information.

PerformancePerformanceManagementManagementMay the most agile win …May the most agile win …

Measurement and Performance

There are some questions that are relevant for business:Do we attract and retain the right people with the right skills?Are we performing effectively in our operations to produce

and deliver to our stakeholders?Are we meeting or exceeding our stakeholders expectations?How are we doing financially?

o Margins?o Costs? o Revenues?o New business revenues?

So far so good …….. But …..

Is there any difference between organisational and individual performance management?

Where should management put more attention to when managing performance?

At the end …what is performance management?

Defining Individual performance

Performance Management

Support and tools

Competencies, knowledge

and skills

Motivation

Performance: Those behaviours, that under the right conditions, lead to the expected

results

KNOWLEDGEI know how

to do it

CONTEXTI know what

to do

WILLINGNESS

I want to do it

Value for clients, stakeholdersAnd employees

Organisational Strategies

Divisions, Sections, Programs Plans etc

Individual Action

Best Practices• In value based managed enterprises, individual employees understand how

processes and day-to-day activities contribute to value creation• They know what they have to do individually to contribute to value creating• This value creation focus becomes the basis for determining appropriate

performance measures and enables to differentiate between what could be measured and what should be measured (Business Balanced Scorecard Concept)

The need to cascading down to level n…

Individual performance management infrastructure

Performance Management infrastructure

1. Roles & Responsibilities2. Annual objectives and

feedback3. Competencies model

Performance Management infrastructure

1. Roles & Responsibilities2. Annual objectives and

feedback3. Competencies model

Organisation Structure

Compensation & Incentives

Career Development

Training & Education

Recruiting & Selection

Integrated People Management Process

Individual Goals

Team Goals

Corporate Goals

Individual Competency

Competency Mix

Core Capabilities & Key Competencies

GOAL MANAGEMENT COMPETENCY MANAGEMENT

PERFORMANCE MANAGEMENT

Performance Management System

Competencies….

What are competencies?

Competencies are a set of behaviours that encompass skills, knowledge, abilities, and personal attributes that, taken together, are critical to successful work accomplishment.

Organisational and Individual Competencies

Organisational Competencies:Pinpoints the most critical competencies for

organisational success. These are an organisation’s core competencies.

Individual Competencies:Those competencies that each employee brings to his

or her function.

What is a Competency Framework?

A Competency Framework is a map to display a set of competencies that are needed to achieve an organisation’s mission, vision, and strategic goals.

A Competency Framework is future-oriented, providing a master of core individual competencies required to develop the ideal future workforce.

The competencies that make up the framework will serve as the basis for future employee management, since they play a key role in decisions on recruiting, employee development, personal development, and performance management.

Why a Competency Framework? A Competency Framework will help to bridge the gap

between where the organisation is now and where we want to be in the future.

This occurs in two ways.

Serves as a guide for management in making decisions, since it is based on the competencies that support the mission, vision, and goals of the organisation.

Serves as a map to guide employees towards achieving the mission of the organisation and their functional areas.

Approaches to Competency Profiling

Two approaches to competency profiling:

Top-down approach: Generally involves picking, based on a strategic analysis of the

organization's performance objectives, an array of competencies from a dictionary of competencies and assessing those for a particular position or class of positions.

Bottom-up approach: Involves exploratory checklist surveys and subsequent

confirmatory interviews to derive the competencies from employees.

Functional Competencies

Administrative Knowledge Business Acumen Computer Filing Financial Health & Safety Knowledge and Skills Human Resources Industrial Relations Legal Knowledge Management Information Marketing/Sales Procurement Quality Knowledge and Skills Security Typing

Task and Leadership Competencies

Analytical Ability Assertiveness Conflict Handling Customer Focus Decisiveness Flexibility Individual Leadership Initiative Judgement Leadership of change Negotiation Skills Oral Presentation Oral Persuasiveness Performance Orientation Persistence

Task and Leadership Competencies

Planning/Organising/Control Self-development orientation Strategic and Global Perspective Team Leadership Values Verbal Communication Written Communication

Competency & Skill Library Features & Benefits

Comprehensive LibraryNo need to “reinvent the wheel.” Allows a quick start. Completely customisable: Create new skill groups, skills, and sub-skills as needed

Create Common or Unique Performance LevelsDefine different levels of competence (for example, from beginner to expert) for each competency, or use one scale for all

Input Performance TargetsIdentify performance expectations for each competency/skill group for entry level up to senior management

Competency & Skill Library Features & Benefits

Define Behavioural IndicatorsIf desired, enter behavioural examples/targets for competencies and skills

Continually Enhanced and Grows in ValueThe library is easily enhanced as a by-product of job profiling, performance planning, and employee development

Fully Integrated with Other HR FunctionsYour competency/skill library is used in every other function of HR, it ties them all together, and allows consistency throughout all of your performance management and developmental programs

Job Profiling…

What is Job Profiling

Job Profiling is a systematic procedure for identifying the Competencies critical for success in a particular job or a job role.

Job profiles can then be used for recruitment, selection, performance review, promotion, career development and succession planning.

Job Profiling Procedure

Step 1: Obtain background information about the job to be profiled and how that job fits into the organisation.

Step 2: Develop an initial list of the tasks most relevant to the job being profiled.

Step 3: Meet with subject matter experts (SMEs)—incumbent workers or supervisors of the job being studied—who review and revise the list, adding, deleting, consolidating, or changing the wording of each task to make sure that the list of tasks accurately represents the job as it is performed in the organisation.

Job Profiling Procedure

Step 4: Present detailed descriptions of each of the Analytix Competency Framework to the SMEs. The SMEs decide, as a group, which competencies are relevant to the job and which skill levels are necessary for entry into the job and effective performance in the job.

Step 5: The final product of the profiling procedure is a report listing the most critical tasks an individual in that job must perform and, for each relevant Analytix competency, the skill level required to perform the job.

Department

Programme

Team objectivesPersonal development needs and

aspirations

Individual objectives

AttendedImprove capabilities in client service by attending course by end Q4 2001

Survey set up

Improve client satisfaction feedback by setting up an appropriate survey by Q3 2001

6%10%Grow net new money excluding market growth by the end of Q4 2001

34220%

44440%

33440%

Objectives

Self Manager

Target Result Weighting Assess Assess Final

% 1 – 5 1 – 5 1 - 5

Example of Individual Target Setting

Step 3: Set Measurable Targets for Individuals

Example

Example

Example

Example

Potential Appraisal

IITTMM.B.A.-IISemester (PGDM-tt)

Unit III

What do you mean by Potential Appraisal?

POTENTIAL APPRAISAL

Qualities that exist Evaluation

and can be developed

• Beyond the Present Role.

Overview of POTENTIAL APPRAISAL

• How Indian organisations give promotions to their people?

• What is the nature of the Indian organisation?

• At every designation each individual has to perform different roles, responsibilities and functions.

Promotions A Big Problem!• Promotions are given on the basis of past

performance. - An assumption is being made that competence in performing the present role is sufficient indicator of competence to perform a higher and different role in the organisation. • Seniority is given more priority then

Younger Talents.

Definition:- Potential appraisal is concerned with identifying

the potential of an employee for future development and promotion in the organisation.

Objective:-

To identify the potential of a given employee to occupy higher positions in the organisational hierarchy and undertake higher responsibility.

Why Potential Appraisal System is needed?

• It attempts to generate

- Data about employees

- Their potential for occupying higher positions from a variety of sources and helps the top management to make decisions.

• The organisation also has the responsibility for developing the managerial talent so this system also helps the management in identifying employees whose capabilities can be developed.

Steps to be followed for a good potential appraisal system

• Role Descriptions• Qualities required to perform the roles• Indicator of Qualities

- Rating by Others

- Psychological Tests

- Simulation Games and Exercises

- Performance Appraisal Records• Organising the System• Feedback on Potential Appraisal for Career Dev.

Linkages with Other System

• Feedback and Counseling

• Training

• Job Rotation

• Data Storage

• Manpower Planning

Current Status and Experience

• Indian Organisations are yet to focus their attention on potential appraisal.

• With Growth Opportunities all around, their has been high mobility among executives. Due to this Mobility, most organisations are not willing to invest their time and effort in identifying and developing the potential of managers.

• Potential appraisal is time consuming activity.

Examples:

• CROMPTON GREAVES LTD.

• BPL

• Dr. REDDY

Potential Appraisal Form • Potential appraisal is an important part of the appraisal

process. Appraising an employee’s potential helps to evaluate and his/her capability for growth and development to greater challenges, responsibilities and positions in the organisational hierarchy. Most organisations incorporate potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning.

• This Appraisal concentrates on the future, based on the performance of the past and helps in developing the personal interests of the employees in alignment to the organisational goals.

With the help of the potential appraisal form, the employees/ individuals are judged on various performance and behavioural parameters like:

• The performance areas in which the improvement or development is indicated.

• The accomplishments and the targets achieved in the current appraisal period

Overall rating of the performance• What skills, knowledge, competencies and qualities

should be developed?• Has the employee taken any steps for improving his

performance and his career development?• Recommendations for the training and development of

the employee• Updating knowledge on the latest developments on their

job related and subject areas.

Rate the employee on the following characteristics or how does the employee fair on following behavioural characteristics:

• Decision making• Independent• Confidence towards the job• Handling stress and pressure• Inter-personal skills, both with superiors and

subordinates• Leadership, motivating and conflict handling

The past performance of the employee and the potential of performing in future helps to identify the hidden talents.

Succession Planning

IITTMM.B.A.-IISemester (PGDM-tt)

Unit III

“We put good people in big jobs before

they are ready.”

—Pepsi Co.

A means of identifying and developing talent or high achievers in the organization.

It also provides continuity in all key positions in the organization.

It is part of the process of preparing for the future of the organization.

What is Succession Planning?

• Provides a means for the organisationto develop its human capital and have full access to a broader base of talent.

• Assures an on-going supply of qualified people to be ready to assume positions and carry on and excel when the current people move up, retire or move on.

Why is it important to have a Succession Plan?

• Aligns the future needs of the Agency with the availability of appropriate resources.

• Improves morale and commitment to the organization.

• Serves as a positive recruitment tool that your Agency is a good, challenging and stimulating place to work.

Why is it important to have a Succession Plan?

• 7% of government organizations have succession plans in place as compared to 61% of private sector organizations.

• 93% of private business say they are planning to have succession plans as compared to 28% of government organizations.

- National Academy of Public Administration Survey

Some Statistics

1. It supports the Strategic/Business Plans of the organization.

2. It is successfully implemented and is responsive to change.

3. It builds and sustains high performance of the organization.

Goals of a Successful Succession Plan

Assessment ofKey Positions

Identification ofKey Talent

Assessment ofKey Talent

Generation ofDevelopment Plans

DevelopmentMonitoring & Review

KeyElements

Succession Planning: Key Elements

1. Assessment of Key Positions:

• What are the competencies and experiences needed to qualify for each key position?

2. Identification of Key Talent:

• Typically people at the top two levels of the organization and high potential employees one level below.• Identified by their management’s assessment of their performance and potential for advancement.

3. Assessment of Key Talent:

• For each person on the radar screen, primary development needs are identified focusing on what they need in order to be ready for the next level.

Succession Planning: Key Elements

4. Generation of Development Plans:

• A development plan is prepared for how we will help the person develop over the next year.

5. Development Monitoring & Review

• An annual or semi-annual succession planning review is held to review progress of key talent and to refresh or revise their development plan.

Succession Planning: Key Elements

1. Succession Planning must be linked to the organisation’s overall Strategic Plan

2. Identify critical competencies and characteristics needed at all levels of the organization to support the organisation’s future strategic direction

3. Identify critical competency gaps between the current and those needed for the future of the organisation

10 Key Steps

4. Establish measurements that will help guide and evaluate succession RESULTS

5. Identify strategies that can help the Agency recruit, develop and retain talent who can help close gaps

6. Monitor key employees and their career progression

7. Align all phases of the HR process with the Succession planning process

10 Key Steps (continued)

8. Have consistency and uniformity in the process of job analysis, definition of competencies, criteria for selection, and in performance evaluations

9. Understand issues related to logistics, fairness concerns and defensibility of establishing a pool of candidates to be involved in succession planning activities

10. Systematically review the Succession Planning process – modifying and adjusting according to the changing needs of the organisation

10 Key Steps (continued)

Levels of Management

Senior:

Middle:

Supervisor:

Employees: Day to DayOperations

Operations

Strategic/Operations

Strategic Multi-Year

Yearly

Primary Skill Requirements of Management

Senior:

Middle:

Supervisor: • Facilitating Workgroup Performance

• Collaborating Across Functions

• Creating Strategic Alliances

• Integrating Organizational Outcomes

• Strategically positioning the Organization

Systems Approach to Succession Planning

Identify the:

• Desired outcome (Future State)

• Key Measures of Success (Feedback)

• Current State

• Strategies and action steps

1. Leaders really do matter … in managing/driving accountability, results, culture.

2. Performance is what counts … top performers over high potentials (the “what” & “how” both count).

3. Today’s top performing leaders aren’t necessarily tomorrow’s … even our best leaders can fall behind or derail.

4. Talent is an enterprise resource … willingness to share talent makes the system work.

5. A broad set of experience & assignments is the best classroom … yet a balanced approach is still necessary for development.

6. It’s incumbent upon today’s “top-100” to leave a legacy of future talent … current leaders must teach, mentor, & role model others on what it takes to succeed.

7. Invest in the best … focus the rest.

Core Principles Underlying Succession Planning

SUCCESSION CANDIDATES

KEY POSITION TITLE ________________________

Backup Candidate Name: ______________________

Current Title: ________________________________

Div: ______________ Level of Readiness (Circle One):

Within 1 Yr. 1–3 Yrs. 3–5 Yrs.

__________________________________________________

Strengths for this position:

Developmental needs for this position:

Comments:

__________________________________________________

Date: FY:

Completed by: Division:

SUCCESSION PLAN SUMMARY

ORGANIZATION:_____________________

Key Position Title

Incumbent Name

Position

Vulnerability

Succession Candidate

Names

Open in

< 1 Yr

Open in

1–3 Yrs

Open in

3 + Yrs

Ready in

< 1 Yr

Ready in

1–3 Yrs

Ready in

3 + Yrs

Overall Performance Summary: (Indicate recent performance including major accomplishments or performance issues.)        

       

Key Strengths: (List 2 - 3. Indicate key technical or professional competencies, skills, or knowledge the person has.)               

Development Needs: (List 2 or 3. Indicate key experiences, skills, or knowledge the person lacks in order to move to the next level.)               

Development Actions:1. On The Job: (What new responsibilities do you plan to assign to help this person develop this year?)               

EXECUTIVE DEVELOPMENT PLAN

NAME: ________________ TITLE: ________________

2. Special Assignment: (What task force, projects, or special assignments will be given this year to aid development?)               

3. Training: (What specific training or seminars are recommended this year for his/her development?)             

Potential For Promotion:(Indicate this persons readiness to be promoted to the next organizational level.)

Ready now for the next level.

Ready in the next 24 months.

Ready in 2 to 3 years.

Recommended Next Position: (List the next assignment thatwould most benefit the individual in his/her development.)

PLANS FOR SELECTED TALENT

ORGANIZATION:_____________________

Name Title High Level Plan

Semi-Annual Succession Planning Review

• Review of succession candidates and development plans in each organizational unit

• Report development progress and make necessary adjustments to the plan

• Orchestrate moves for the next six months

Conflict and Stress Management

IITTMM.B.A.-IISemester (PGDM-tt)

Unit IV

Primary Levels of ConflictWithin Organizations

Intrapersonal (within an individual)

Interpersonal (between individuals)

Intragroup (within a group)

Intergroup (between groups)

ConflictConflict

Functional conflict serves the organization’s interests while

Dysfunctional conflictDysfunctional conflict threatens the organization’s interests.

Conflict:Conflict: “A process in which one party perceives that its interests are being opposed or negatively

affected by another party.”

Antecedents of ConflictAntecedents of Conflict

• Incompatible personalities or value systems.

• Overlapping or unclear job boundaries.• Competition for limited resources.• Interdepartment/intergroup competition.• Inadequate communication.• Interdependent tasks.• Organizational complexity.

Antecedents of ConflictAntecedents of Conflict (continued)(continued)

• Unreasonable or unclear policies, standards, or rules.

• Unreasonable deadlines or extreme time pressure.

• Collective decision making.• Decision making by consensus.• Unmet expectations.• Unresolved or suppressed conflict.

Sources of Interpersonal Conflict

• Competition for Limited Resources• Role Conflict• Competing Work and Family Demands• Building Stone Walls• Personality Clashes• Aggressive Personalities Including Bullies

Marketing – Manufacturing Areas of Potential Goal Conflict

MARKETING VS. MANUFACTURING Operative goal is Operative goal isGoal Conflict customer satisfaction production efficiency

Conflict Area Typical Comment Typical Comment

Breadth of product line: “Our customers “ “The product line is too demand variety.” broad, all we get are

short, uneconomical runs.”

New product introduction: “New products are our “Unnecessary design changes lifeblood.” are prohibitively expensive.”

Production scheduling: “We need faster response. “We need realistic customer Lead times are too long.” commitments that don’t

change like the wind direction

Physical distribution: “Why don’t we ever have “We can’t afford to keep huge the right merchandise inventories.”

in inventory?”

Quality: “Why can’t we have “Why must we always offer reasonable quality options that are too at low cost?” expensive and offer little

customer utility?”

Desired Outcomes of ConflictDesired Outcomes of Conflict

AgreementAgreement: Strive for equitable and fair agreements that last.

Stronger relationships:Stronger relationships: Build bridges of goodwill and trust for the future.

Learning:Learning: Greater self-awareness and creative problem solving.

Tips for Managers Whose Tips for Managers Whose Employees Are Having a Employees Are Having a

Personality ConflictPersonality Conflict1. Follow company policies for diversity, anti-

discrimination.2. Investigate and document conflict. 3. If appropriate, take corrective action (e.g.,

feedback or B Mod).4. If necessary, attempt informal dispute

resolution.5. Refer difficult conflicts to human resource

specialists or hired counselors for formal resolution attempts and other interventions.

How to Build Cross-Cultural How to Build Cross-Cultural Relationships and minimize Relationships and minimize

ConflictConflictBehaviorBehavior RankRankBe a good listener 1Be sensitive to the needs of others 2Be cooperative, rather than overly competitive

2Advocate inclusive (participative) leadership 3Compromise rather than dominate 4Build rapport through conversations 5Be compassionate and understanding 6Avoid conflict by emphasizing harmony

7Nurture others (develop and mentor) 8

TieTie

Three ViewsThree Viewsof Conflictof Conflict

TraditionalTraditionalHumanHumanRelationsRelations

InteractionistInteractionist

Sources ofConflict

Sources ofConflict

CommunicationDifferences

CommunicationDifferences

StructuralDifferencesStructural

Differences

PersonalDifferences

PersonalDifferences

ForcingForcing CollaborationCollaboration

AccommodationAccommodationAvoidanceAvoidance

Cooperativeness

High

Low

As

ser

tiv

en

ess

Conflict-handling Styles

High

Compromise

Conflict and Unit PerformanceU

nit

P

erfo

rman

ce

High

Low Level of Conflict High

A B C

Situation

A

B

C

Conflict Level Conflict Type Internal Characteristics Outcomes

Low or none

Optimal

High

Dysfunctional

Functional

Dysfunctional

Apathetic, stagnant

Viable, innovative

Disruptive, chaotic

Low

High

Low

When to Stimulate Conflict

• Are you surrounded by “yes” people?

• Are employees afraid to admit ignorance?

• Do decision makers sacrifice values for compromise?

• Do managers maintain an “impression” of cooperation?

• Are managers overly concerned about the feelings of others?

• Is popularity more important than performance?

• Do managers crave decision-making consensus?

• Are managers resistant to change?

• Is there a lack of new ideas?

• Is turnover unusually low?

How to Stimulate Conflict

• Legitimize conflict

• Use communication

• Bring in outsiders

• Use structural variables

• Appoint a “devil’s advocate”

ImportanceImportanceImportanceImportanceUncertaintyUncertaintyUncertaintyUncertainty

What Is Stress?What Is Stress?What Is Stress?What Is Stress?

DemandsDemandsDemandsDemandsConstraintsConstraintsConstraintsConstraints

What is Stress?

An adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being.

Stress• Many people are familiar with a cognitive

model of counseling which suggests that events themselves don’t affect us--our thinking about those events does.

• Hans Selye was an early thinker in the field, who argued that stress may be considered “good stress,” or “bad stress,” depending upon its effects on the person experiencing it. If stress in and of itself is not bad for you, then aren’t we talking about managing our response to stress, instead of the stress itself?

Stress

• With this in mind, what kinds of feelings (physical and emotional do you get when you get “stressed out?”

– Apprehension.– Uneasiness.– “Butterflies” in the stomach.– Autonomic reactivity.– Withdrawal and isolation.

Myths about Stress Management• Stress is always bad.

– How many people like to be stressed? – If you stopped people on the streets and asked what

they think about stress, what kind of response would you expect?

– On the one hand, we hear that over 50% of routine medical visits are due to stress-related conditions…but what does this mean?

– Temptation is to believe that if we just did away with stress, our problems would also vanish.

– Problem is, stress has an adaptive function, too. Sometimes we need stress responses in order to perform.

• Endocrine response prepares body for action.• Cognitive focus improves.

– In addition, good things can be stressors, too.

Myths about Stress Management• Catastrophic stress is the worst kind.

– When we think of stressors, we often think about the really bad things that happen, and there’s no question that we don’t want to experience these things.

– But the fact is that we are also affected by the routine, everyday “hassles” that all of us do experience.

– And sometimes the effects of those hassles can build up and have similar effects as even the most serious catastrophic crises and stressors.

– Lazarus has done significant work in this area, and has demonstrated the injurious effects of these hassles. Top ten hassles:

• 1) Physical appearance• 2) Crime• 3) Money and taxes• 4) Home maintenance• 5) Losing or misplacing things• 6) Too many things to do• 7) Cooking and cleaning• 8) Rising prices• 9) Health• 10) Concern about weight

Myths about Stress Management• Stress causes illness.

– There is a clear link between stress and illness. No question about that fact.

– There have been some elegant studies. One from the NEJM in 1991, examined development of cold symptoms from individuals stratified according to stress level, who were then administered a cold virus through a nasal spray! Sure enough, individuals with higher stress levels tended to get colds more than those with lower stress.

– What is in question, however, is what kind of stress, to what kinds of people, in what kinds of settings, under what kinds of conditions, is most harmful?

– The problem is, no one has been able to find a link that works all the time. There are obviously moderators, like personality variables (optimism, negative affect, perceptions of stress), previous experience, and a host of other factors.

OrganizationalOrganizational

Stress FactorsStress Factors

OrganizationalOrganizational

Stress FactorsStress Factors

Task DemandsTask DemandsTask DemandsTask Demands

Role DemandsRole DemandsRole DemandsRole Demands

Interpersonal DemandsInterpersonal DemandsInterpersonal DemandsInterpersonal Demands

Structural DimensionsStructural DimensionsStructural DimensionsStructural Dimensions

Leadership TechniquesLeadership TechniquesLeadership TechniquesLeadership Techniques

Personal StressPersonal StressFactorsFactors

FamilyFamilyFamilyFamily EconomicEconomicEconomicEconomicPersonalityPersonalityPersonalityPersonality

StressStress

WorkWorkStressorsStressors

InterpersonalInterpersonal

Role-relatedRole-related

Task controlTask control

Organizational/Organizational/Physical Physical

EnvironmentEnvironment

Stressors and Stress Outcomes

NonworkNonworkStressorsStressors

IndividualDifferences

ConsequencesConsequencesof Stressof Stress

PhysiologicalPhysiological

BehavioralBehavioral

PsychologicalPsychological

PhysiologicalPhysiological

PsychologicalPsychological

BehavioralBehavioral

Stress

Three General Symptoms

Stress

Three General Symptoms

Stage 1Alarm Reaction

Stage 2Resistance

Stage 3Exhaustion

NormalLevel of

Resistance

General Adaptation Syndrome

What are Stressors?

Stressors are the causes of

stress -- any environmental

condition that places a physical or

emotional demand on the person.

Interpersonal Stressors

• Considered the most common group of workplace stressors

• Include:– Team dynamics– Organizational politics– Bad bosses– Workplace violence– Psychological and sexual harassment

Psychological Harassment

Repeated and hostile or

unwanted conduct, verbal

comments, actions or

gestures, that affect an

employee's dignity or

psychological or physical

integrity and that result in a

harmful work environment for

the employee

Minimizing Harassment1. Develop policies and culture of a more

respectful workplace

2. Screen job applicants for past incidents where they have harassed others

3. Use multi-source (360-degree) feedback to identify harassing behavior

4. Develop a trustworthy conflict resolution process

Role-Related Stressors• Role conflict

– Incongruity or incompatibility of expectations associated with the person’s role

– Occurs when two roles conflict with each other– Occurs when personal values conflict with work roles

• Role ambiguity– uncertain task and social expectations

• Work overload– increased hours and intensity

Task Control Stressors

• Stress increases when employees lack control over:– How and when tasks are performed– Pace of work activity

• Low task control is a higher stressor when job also has high responsibility

Org & Physical Environment Stressors

• Organizational– Most prevalent is downsizing, which affects

layoff survivors• reduced job security

• chaos of change

• additional workloads

• guilt of having a job as others lose theirs

• Physical Environment– Due to excessive noise, poor lighting and

hazards

Work-Nonwork Stressors• Time-based conflict

– due to business travel, inflexible and/or rotating work schedules

– for women -- still do most household chores

• Strain-based conflict – work stress affects home, and

vice versa

• Role behavior conflict – incompatible work and family

roles

AccountantAccountant

ArtistArtist

Car MechanicCar Mechanic

Forest RangerForest Ranger

Low-StressOccupations

High-StressOccupations

Hospital managerHospital manager

Doctor (GP)Doctor (GP)

PsychologistPsychologist

School principalSchool principal

PresidentPresident

Prison officerPrison officer

TeacherTeacher

NurseNurse

Stress and Occupations

Medium-StressOccupations

© Photodisc. With permission.

Individual Differences in Stress

1. Different threshold levels of resistance to stressor

2. Use different stress coping strategies

3. Perceive the situation differently–Knowledge and skill–Natural optimism and

confidence (resilience)

Individual Differences: Resilience• Capability of individuals to cope successfully in the

face of significant change, adversity, or risk• Personality traits

– extroversion, low neuroticism, internal locus of control, high tolerance of change, and high self-esteem

• Adaptability to stressors– high emotional intelligence– good problem-solving skills– productive coping strategies

• Inner strength/sense of purpose– Workplace spirituality

BehavioralBehavioral

PsychologicalPsychological

Work performance, accidents, absenteeism, aggression, poor decisions

Dissatisfaction, moodiness, depression, emotional fatigue

PhysiologicalPhysiologicalCardiovascular disease, hypertension, headaches

Consequences of Stress

CONSEQUENCES OF DISTRESS

• Physiological consequences – chronic stress may lead to cardiovascular disease, strokes, heart attacks, hypertension (whenever people are stressed, their blood pressure goes up and down).

• Psychological consequences – chronic stress may also lead to job dissatisfaction, moodiness, and depression.

BEHAVIORAL CONSEQUENCES

• Distressed employees may lead to workplace accidents, decrease performance, and high levels of absenteeism.

• Workplace aggression – refers to a situation whereby employees engage in verbal conflict.

• Aggression represents the fight (instead of flight)

CynicismCynicism

Reduced EfficacyReduced Efficacy

Physiological,Physiological,

psychological,psychological,

and behavioraland behavioral

consequencesconsequences

EmotionalEmotionalExhaustionExhaustion

Interpersonal andRole-Related Stressors

Job Burnout Process

Stress Stress Management Management

StrategiesStrategies

Remove the Remove the StressorStressor

Withdraw Withdraw from the from the StressorStressor

Change Change Stress Stress

PerceptionsPerceptions

Receive Social

Support

Control Stress Control Stress ConsequencesConsequences

Stress Management Strategies

Remove the Stressor

• Stress audits -- investigate sources of stress

• Change corporate culture and reward system

• Provide environment that supports empowerment

• Person-job matching

• Work-life balance initiatives

Work-Life Balance

• Flexible work time

• Job sharing

• Teleworking

• Personal leave

• Childcare support

Stress Mgt. At Liggett-Stashower

When employees at Liggett-

Stashower, Inc. in Cleveland

need a short break from the daily

stresses of work, they retreat to

one of three theme rooms,

including this karaoke room.

“The higher the stress level, the

more singing there is going on,”

says Liggett’s art director.

Courtesy of Liggett Stashower, Inc.

Withdraw from the Stressor

• Permanent withdrawal– Remove employees from

jobs not aligned with their competencies

• Temporary withdrawal– Coffee/lunch breaks

– Karaoke breaks (photo)

– Sabbaticals

Courtesy of Liggett Stashower, Inc.

Other Stress Mgt Strategies

• Change stress perceptions– Self-confidence, self-leadership

• Control stress consequences– Relaxation and meditation– Fitness and wellness programs

• Social support– Emotional and informational

Stress Management

• Selection and placement

• Job redesign

• Participation

• Wellness programs

• Employee assistance

The Use of Counseling and Discipline to Improve

Employee Productivity

Counseling vs. Discipline

Counseling• Face-to-face

Communication

• Conducted by supervisor

• Usually, first form of action

Discipline• Penalization

• MUST be conducted by Human Resources

• Typically, second form of action (if counseling fails)

Counseling is Not Working, Now What?

• If counseling with the employee fails, or the nature of offense is beyond counseling, disciplinary action is reviewed by Human Resources who will typically recommend courses of action

Before Reporting to Human Resources: Gather the Facts

– What happened?

– Who was directly involved

– Did anyone witness (see and/or hear) anything?

– Was the employee asked to explain?

– List any extraordinary circumstances

Before Reporting to Human Resources: Gather the Facts

• Should the employee reasonably have known the actions were wrong? How?

• Be prepared to :– discuss the employment history of the

employee

– Discuss any previous counseling

– Discuss any previous discipline

Before Reporting to Human Resources: Gather the Facts

• Be prepared to (cont’d):

– Define rating of performance

– Identify any other employees in the unit who have acted similarly? If so, when & what happened?

– Discuss the impact on the immediate supervisor and the unit

– Provide any and all documentation and proof to serve as evidence

Common Reasons for Discipline

• Time and Attendance

• Marginal or unsatisfactory Performance

• Behavior Problems and Insubordination

Time and Attendance

• All leave, except for emergencies and illness must be approved in advance

• Scheduled Leave:– Meetings, routine medical appointments,

vacation

• Unscheduled Leave:– Illness of self or family

Tardiness

• Employees are expected to be at their workstation at the prescribed start times. Arriving late at the start of the day or after the lunch break, may constitute tardiness. Regardless of how many minutes.

• When known in advance, should notify supervisors prior to shift.

• Classified staff - if more than 7 minutes late, should charge accruals

Guidelines for Dealing With Time Abuse

• Maintain and analyze attendance record

• Call-in directly to supervisor or chain of command

• Counsel employee when appropriate

Guidelines for Dealing With Time Abuse

• Learn to say “no” to requests that reasonably could have been made in advance, where appropriate

• Consult with Human Resources for options, including:– Asking for documentation, and

leave requests to be in writing

Why Marginal or Unsatisfactory Performance?

• Lack of communication between supervisor and employee regarding performance expectations

• Lack of necessary skill or knowledge

• Lack of commitment by employee

• Personal problems

Elements of Behavior Problems and Insubordination

• Was the employee actually given an order or directive?

• Was the person who gave the order authorized to do so?

• Did the employee understand that an order was given?

Elements of Behavior Problems and Insubordination

• Was a deadline set for compliance and was the time limit reasonable?

• Was it reasonable for the employee to expect penalty for failure of compliance?

• Was there a clear refusal to carry out the order?

Decision for Discipline:Before issuing a Notice of Discipline, Human

Resources must:

• Decide if allegations are seriousness enough to warrant discipline

• Conduct a thorough investigation of the incidents

• Interview all individuals with knowledge of an event prior to interviewing target

• Review any written policies, guidelines, etc.

Decision for Discipline:Before issuing a Notice of Discipline, Human

Resources must:• Schedule an ‘interrogation’ as defined by

CBA with target individual and direct employee to attend with right to representation

• Provide and read target employee his/her rights under the CBA

• Interrogate (interview) the target individual

• Once the interrogation is concluded, decide if discipline is warranted and what an appropriate penalty would be

• Issue Notice of Discipline

Discipline:Arbitration Standards

• Was there a rule forbidding the alleged misconduct?– Did the employer communicate the work

rules to the employee?

• Was the rule reasonable?– Identify legitimate justification for

insubordination if possible?

Discipline:Arbitration Standards, cont’d.

• Did the employee violate the rule?– Evaluate the quantity and credibility of the

employer’s evidence.

• What constitutes an appropriate penalty?– Apply standards of progressive discipline

when assessing penalties. – Encourage the employee to correct

inappropriate or unacceptable behavior by means of support through management and/or issuing an Employee Assistance Program if needed.

Considerations for Appropriate Penalty

• Seriousness of problem or infraction

• The duration of this and/or other problems

• The frequency and nature of the problem

• Consistency in the supervision of employees

• Extenuating factors related to the problem

Considerations for Appropriate Penalty

• The employee’s knowledge of the rules

• The history of the organization’s discipline practices

• Implications for other employees

• Management banking

Discipline:Procedure

• Interrogate employee

• Issue a Notice of Discipline containing proposed penalty

• Employee has the right to grieve– Step 1: Human Resources– Step 2: SUNY Employee Relations– Arbitration and/or Settlement

• Upon settlement or decision, the penalty can then be implemented

Discipline:Common Outcomes

• Written Reprimand– Permanent written record in personnel file

• Monetary Fine

• Temporary Reassignment– Change of responsibility and job title

• Suspension without pay– Assault, theft, endangering others, antisocial

behavior

• Resignation/Termination– An employee guilty of misconduct or incompetence