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Introduction to HRMS, Acquiring HR (Staffing)Training and development of HR,Rewarding and motivating HR,Labor management relations and collective bargaining
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1
Human Resource
Management
(Selected Notes)
For Questions: 03335885711
2
By keeping in mind the outline for Human resource Management MBA III of university of Azad
Kashmir, I put my knowledge and research into work to compile these comprehensive notes.
These will prove a good source of knowledge and preparation of exam.
Please support & appreciate my effort by not trying to reproduce my work without any prior
permission.
Prof. Ms Ambreen Bilal
MBA Finance, MSC Econamice, B.Ed,
University of AJK
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Part 01 Introduction to HRMS
1.1 Introduction and meaning ------------------------------------------------------06
1.2 Basic of HRM-------------------------------------------------------------------------08
1.3 Objective of HRM-------------------------------------------------------------------12
1.4 Environmental factor in HRM----------------------------------------------------13
1.5 Function / activities-----------------------------------------------------------------17
1.6 HRM departments/ Area----------------------------------------------------------19
Part ii Acquiring HR (Staffing)
2.1 EEO and discrimination-------------------------------------------------------------13
2.2 Strategic HR planning (SHRP)-----------------------------------------------------24
2.3 Job analysis---------------------------------------------------------------------------28
2.4 Job design------------------------------------------------------------------------------36
2.5 Recruitment---------------------------------------------------------------------------46
2.6 Selection--------------------------------------------------------------------------------54
CONTENTS
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Part iii Training and development of HR
3.1 Orientation-----------------------------------------------------------------------------65
3.2 Training-----------------------------------------------------------------------------------67
3.3 Training methods----------------------------------------------------------------------69
3.4 Training and learning-----------------------------------------------------------------73
3.5 Placement-------------------------------------------------------------------------------76
3.6 Separations-------------------------------------------------------------------------------77
3.7 Development-----------------------------------------------------------------------------78
3.8 Career planning and development--------------------------------------------------81
Part IV Rewarding and motivating HR
4.1 Performance Appraisal---------------------------------------------------------------91
4.2 Reward and Compensation---------------------------------------------------------98
Part v Labor management relations and collective bargaining
5.1 Labor management relations and collective bargaining------------------107
5.2 Discipline & Governance handling-----------------------------------------------109
CONTENTS
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Outline 01
Introduction to HRM
1.1 Introduction and meaning & Definition of HRM
1.2 The basics of management
Planning
Organizing
Leading
controlling
1.3 Objectives of HRM
Organizational objectives
Functional objectives
Social objectives
Personal objectives
1.4 Environmental factors in HRM
External factors
Internal factors
1.5 Functions / Activities of HRM
Employment
Transfer, Promotion, Layoff
Training and development
Compensation administration
Health and safety
Discipline and discharge etc..
1.5 HRM departments / areas
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1.1-INTERODUCTION AND MEANING
Human resource refers to the people in an organization.
Why HR or people are important to an organization?
People are the common element in the organization.
They create the strategies and innovations for which organizations are noted.
People make an organization efficient.
People help in increasing productivity of an organization.
In short we can say “assets make things possible, people make things happen”.
Now lets see what is human resource managed.
Definition:
According to business directory
‘’’Human resource management is a management of people to achieve individual behavior and
performance that will enhance an organization’s effectiveness’’’’
‘’A set of interrelated functions and process whose goal is to attract, socialize, motivate,
maintain and retain an organization’s employee’’’
‘’’HRM can be defined as a field of management which relates to planning, organizing, directing
and controlling the functions of procurement, development, maintenance and utilization of
labor force with a view to attaining organizational goals economically and effectively’’’
Explanation
These definitions gives an idea that is an area within management that deals primarily
with activities that directly effect how employees are brought into the organization and how
they are treated once they are employed. These activities include recruiting, selecting, training,
evaluating and compensating employees as well as other activities such as managing labor
relations working conditions and other employment related issues.
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HUMAN RESOURCE MANAGEMENT CHART OF UNILEVER 01
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1.2-BASICS OF HUMAN RESOURCE MANAGEMENT
Management
Management is the process of efficiency achieving organization objectives with and
through people
The basics of management
Management typically requires the condition of several vital components that will call
function. The main /basic function of management is...
1-Planning
A management functions focusing on setting organizational goals establishing strategy
and developing plans to coordinate activities.
2-Organizaing
A management function that deals with determining what job are to be done, by whom,
where decisions are to be made, and how to group employees
Planning
HRM STAFFING
Strategic HRM planning
Recruiting Selection
Organizing Controlling
Leading
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3-Leading
Function that includes motivating employees, directing others, selecting the most
effective communication channels and resolving conflicts.
4-Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting
any significant deviation.
Management roles
In the late 1960s a graduate student at MIT, Henry Mintzberg , undertook a careful
study of five executives to determine what these managers did on their jobs. On the biases of
his observation of these managers, Mintzberg concluded that managers perform 10 different ,
highly interrelated roles or set of behaviors attributes to their jobs.
Management roles
ROLE DESCRIPTION
Interpersonal
Figurehead Symbolic head required to perform a number of routine duties of a legal
or social nature.
Leader Responsible for the motivation and direction of employees
Liaison Maintains a network of outside contacts who provide favors and
information.
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Informational
Monitor Receives wide verity of information, serves as nerve centre of internal
and external information of the organization.
Disseminator Transmits information received from outsiders or from other
employees to member of organization
spokesperson Transmits information to outsiders on org. plans, polices, action and
results serves as expert on organizations industry
Decisional
Entrepreneur Searches organization and its environment for opportunities and
initiates projects to bring about change.
Disturbance handler Responsible for corrective action when organization faces important,
unexpected disturbances
Resources allocator Make or approves significant organizational decision.
Negotiator Responsible for representing the organization at major negotiation.
Management skills
Still another way of considering what managers do is to look at skills or competencies
they need to achieve their goals.
Robert Katz has identified three essential management skills, technical skills, human skills.
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Technical skills
Technical skills encompass the ability to apply specialized knowledge or expertise. When
you think of the skills held by professionals such as civil engineers or oral surgeons, you typically
focus on their technical skills, through extensive formal education , they have learned the
special knowledge and practices of their field.
Human skills
The ability to work wit , understand and motivate other people both individually and in
groups describes human skills. Many people are technically proficient but personally
incompetent. They might be poor listeners, unable to understand these needs of others, or
have difficulty managing conflicts. Because managers get thing done through other people,
they must have good human skills to communicate, motivate and delegate.
Conceptual skills
Managers must have the mental ability to analyze and diagnose complex situations.
These takes require conceptual skills. Decision making for instances require managers to
identify problems, develop alternative solution to correct those problems, evaluate those
alternatives and select the best one.
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1.3-OBJECTIVES OF HUMAN RESOURCES MANAGEMENT OR
RELATIONSHIP OF HR ACTIVITIES / FUNCTION TO HR OBJECTIVES
Objectives
‘’Objectives are benchmarks against which actions are evaluated’’
Overall objectives of HRM
Overall objectives of HRM are to improve the productive contribution of people to the
organization in ways that are strategically, ethically and socially responsible’’
2-FUNCTIONAL
OBJECTIVES
1. Appraisal
2. Placement
3. Assessment
1-ORGANIZATIONAL
OBJECTIVES
Supporting activities /
function
1-Human resource planning
2-Employee relation
3-Selection
4-Training and development
5-Appraisal
6-Placement
3-SOCIAL
OBJECTIVES
1. Legal
compliance
2. Benefits
3. Union-
management
relations
4-PERSONAL
OBJECTIVES
1. Training and
development
2. Appraisal
3. Placement
4. Compensation
5. assessment
HR OBJECTIVES
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There are four objectives of HRM
Organizational objectives
Line and staff department. The HRM department exist to help managers achieve the
objectives of organization.HR management is not an end in itself, it is only a means of assisting
managers with their HR issues
Functional objectives
To maintain the department contribution a level appropriate to the organization’s
needs. Resources are wasted when HR management is more or less sophisticated then the
organization demands. Realizing that the HR department had grown too large.
Social objectives
To be ethically and socially responsive to the needs and challenges of society while
minimizing the negative impart of such demands on the organization.
Personal objectives
To assist employees in achieving their personal goals, at least insofar those goals
enhance the individual’s contribution to the organization. The personal objectives of employees
must be met if workers are to be maintained, retained and motivated otherwise they may
leave.
1.4-ENVIORNMENTAL FACTOR IN HUMAN RESOURCE MANAGEMENT
The factors of HRM can be
External environment
Internal environment
EXTERNAL ENVIORNMENT
These external factors are,
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1-Workforce diversity
Managers are confronted daily increasing diversity of workforce , within this diversity of
national origins, there is an even wider diversity of cultures, religions , languages, educational
attainment, skills , values, ages, races, genders and other differentiating variable.
HR department value individual diversity because it brings a rich source of innovative
prospective to the company.
2-Technological factors
Technology is rapidly changing in many areas such as robotic technological advance
being introduced to organization at ever increasing pace. These changing technologies reshape
the whole organizational structure.
3-Econamic factors
HRM department may face following economic factors,
Global competition
Labor costs are increasingly important
Labor markets are international
Increased demand for certain skills and knowledge
Less demand for unskilled labor
Stage of business cycle
4-Government factors
How successfully a firm manages its HR depends largely on its ability to deal effectively
with government regulations. Operating within the legal framework requires keeping track of
the external legal environment and developing internal system to ensure compliance.
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5-Global competition
One of the most dramatic challenges facing firms is how to compete against foreign
firms, both domestically and abroad.
6-Brain drain
The loss of high talent key personnel to competitors or start up ventures. High-tech.
firms are practically affected to these problems.
INTERNAL FACTORS
Following are internal factors of HRM
1-Unions
The HR environment, unions represent on actual challenges to organized companies. HR has
to keep satisfied the labor unions while protecting interest of the organization.
Demands of unions
Wages and benefits
Negotiating with unions
Ours and working conditions
2-Information system
HR Should develop an effective information system so that information can be available at
right time to all audience. The information requirements of a full service department are only
hinted at by question such as
What are the duties and responsibilities of every job in the organization?
What are the skills possessed by the every employee?
How do internal constraints affect the organization?
What are the current trends in competition of employees?
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3-Organization culture
HR has to protect and project the culture of an organization. Organizational culture is
the product of all the organizations features, its people, its success, its failures. Organizational
culture reflects the past and shapes the future.
4-Organization conflicts
Resolving and managing conflict arising in an organization is a challenge for HR.
5-Organization restructuring
Restructuring an organization for betterment is also an important role of HR and also it is a
difficult job as well.
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Objectives
Social
Organizational
Functional
Personal
Frame work and challenges
Preparation and selection
Development and evaluation
Compensation and protection
Employee’s relation and assessment
Internal factors
ii
iii
i
v
External factors
HRM MODEL
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1.5-FUNCTIONS / ACTIVITIES OF HRM
Generally HRM department people performs following functions
1-Employment
This Function includes recruitment, selection and induction into the organization. The
first decision by management is to add someone in organization that is identification need of a
person, skill necessary to do the job and then selecting right candidate.
2-Transfer, Promotion, Layoff
When employees are moved from one department to another either because of the
needs of the business or because of individual request, the personnel records may be studied to
ascertained that they possess the requisite skills.
Layoffs typically are processed by the personnel department to insure that the paper order of
preference is followed.
When a vacancy occurs in a position, it may be filled by promoting a competent employee.
3- Training and development
Employees can get trained by two ways.
On-job training and coaching by line supervisor.
In-service classroom courses and it is supervised by personnel unit.
In organizational development activity the personnel specialist serves in a consulting role to an
operating department. He plans programs in corporation with managers of operating
departments, diagnoses people problems, conducts workshops and provides feedback to the
operating managers.
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4-Compensiation administration
Periodic wage and salary surveys of the labor market are conducted by personnel
department and then pays are raised accordingly.
5-Health and safety
An organizational health program should consist of activities identification and control
of agents within the working environment that can cause occupational diseases. Some agents
are gases, dusts, nose, heat, radiation etc.
Other element of health program is pre-employment medical examinations, periodic
examination and first aid facility at work place.
For providing safety to the employees the safety director must prepare safety displays
distribute safety leaflets, and develop safety instruction material.
6-Disciplane and discharge
Discipline and discharge has two principal meanings.
1. It means ‘’training that molds or correct’’ This means the achieving and maintaining of
orderly employee behavior because the people understand and believe in the
established codes of conduct.
The second meaning is ‘’punishment of wrongdoers.
2. The personnel department is responsible for formulating the rules and range of
penalties for each offence.
Discharge is severe penalty and should be used only when a very clear case can be shown.
7-Labor relation
The personnel department tasks involved in labor relations is contract negotiation,
contract interpretation and administration and grievance handling.
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8-Benefits and services
Under this category personnel department has to deal with these matters like pensions
group, life insurance, sickness, leave pay plans, supplemental unemployment compensation,
loan funds, credit unions, social programs recreational programs and college tuition refund
plans.
9-Organizational planning
The personnel office gathers data, does research, prepares plans and gives advice to the
president for organizational planning.
Now what is organizational planning? Organizational planning requires the development of a
concept of company as a structure or system. The organizational planning staff must prepare
organizations charts and positions guides.
10-Organization development
The major personnel activity is organization development. Organization development is
a general approach for improving the effectiveness of an organization that utilize a verity of
applied behavioral science methodologies. The objectives of organizational development are to
increase the level of trust and supportiveness among people in the organization, enhance
interpersonal skills make communication more open and direct, directly confront problems and
to tap the knowledge of all who can contribute to problem solutions.
11- HR planning
HR planning is the process by which a firm insures that it has right member of qualified
persons available at the proper times, performing jobs that are useful to the organization and
which provide satisfaction for the individuals involved.
The elements of human resource planning are
Goals and planning of organization
Current human resource situation.
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Human resource forecasting.
Designing programs to implement the plans.
Audit and adjustment.
12- Equal employment opportunity
The chief personnel executive should follow the rules of equal employment opportunity
and should not made employment opportunity discrimination on the bases of age, sex, religion,
race, nation etc.
13-Personal and behavioral research
Important areas for investigation in this field are employee’s attitudes and motivation,
predicting success in management and organizational relationship, improving productivity
increase quality of working life.
14-Personnel information system
Today many organization uses mathematical analysis, computers, database to HR
planning, skill inventory, employee benefits analysis and productivity studies.
1.6-HRM DEPARTMENT / AREAS
We can divide HRM department into sub departments
Employment Appraisal &
compensation Training & development
Employee safety
Employee’s relation
President
V/P of HRM
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1-Employment
These are of HR deals with recruitments, selection, posting and placement while
keeping certain principals in minds ‘’ equal employment opportunity’’ for all.
2-Appraisal and compensation
This department determines pay, pay increase, polices, etc. and also evaluate
employees performance against set standards.
3-Training and development
This department is responsible skills development of employees
4-Employees safety
Take care of employee’s health hazards during working, insurance, etc
5-Employment relation
This includes activities like employees counseling employee’s negotiation et
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OUT LINE 02
Acquiring HR (Staffing)
2.1 EEO and discrimination
2.2 Strategic HR planning (SHRP)
Meaning and purpose
Hr information system
The linkage to strategic HR planning
Steps is HRP
Assessing currant HR
The demand for labor
The implementation of future supply
Estimated changes in external supply
Demand and supply of HR
Implementation of HRP
2.3 Job analysis and design
2.4 Job design
Job content
Job design
Job design Approaches and motivation
2.5 Recruitment
2.6 Selection
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2.1-EEO AND DISCRIMINATION
Meaning
EEO stands for equal employment opportunity (EEO).
‘’EEO laws require managers and human resource departments to provide applicants an
equal opportunity for employment without regard to race, region, sex, disability, pregnancy,
national region or age’’
These EEO laws have an impact on every HR activity including
1-Planning
2-Recruiting
3-Selection
4-placement
5-Training
6-compensation
7-Employee relation
As discussed earlier EEO laws compliance is one of HR challenges, that organizations has to
face.
An overview of EEO laws
Types Source Objectives & jurisdiction
Federal act Passed by
congress/assembly/and
enforced by executive branch
To ensure EEO with employees at govt.
level and associated firms at federal
level
State & local laws Enacted by local/provincial
legislatives.
To ensure EEO at state / province level
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Executive orders Decreed by the president To ensure EEO at organization level
Source of variations of EEO
The main source of violation of EEO is ‘’discrimination’’ on the basis of a persons sex race, or
color.
What is discrimination?
It means dealing/ training people with some profile, differently there are two types of
discrimination.
Favorable discrimination
Discrimination on the basis of their effort, performance or another work-related criterion
remains both permissible and divisible.
Adverse/ Disparate discrimination
When the member of a protected class receive unequal treatment because their membership
in that class.
2.2 Strategic HR planning (SHRP)
Meaning and purpose
To ensure that appropriate personnel one available to meet requirements set during the
strategic planning process, human resource managers engage in employment planning. The
purpose of this planning efforts is to determine what HRM requirements exists for current
future supplies and demands workers.
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The linkage to strategic human resource management
Mission
Objectives & Goals
Strategy
Structure
People
Assessing current human resources
Assessing current human resource management brings by developing a profile of
organization’s current employees. This internal analysis includes information about the workers
and skills they currently possess.
One tool for assessing current human resource is maintaining ‘’ human inventory chart’’
Human resource information system(HRIS)
A computerized system that assist in the processing of HRM information. The HRIS is
design to quickly fulfill the human resource management information needs of the
organization. The HRIS is database system that keeps important information about employees
in a control and accessible location.
Determine What business the organization will
Setting goals and objectives
Determine how goals and objectives will be attained
Determining what jobs need to be done and to
Matching skills, knowledge, and abilities to
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Determining the demand for labor
Once assessment of the organization’s current human resources situation has been
made and the future direction of the organization has been considered its time to develop a
projection of future human resource needs
Future human resource needs projection can be done
By keeping an analysis of past trends.
By knowing organizational plans to expand.
By having a look at project, which organization is going to undertake.
The implementation of future supply/ predicting future supply
Estimating changes in internal supply requires HRM to look at those factors that can
either increase it employee base.
Factors that can increase employee base,
New hires
Contingent
Transfer-in
Individuals returning from level
Factors which can decrease employee’s base
Retirement
Dismissals
Transfer-out of the unit
Layoffs
Voluntary quits
Sabbaticals
Prolonged illnesses
Deaths.
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Estimated changes in external supply
Factors discussed in previous topic are internal factors that affect supply of labor. Mow lets
see the external factors that affects the external supply.
Recent graduates from school , colleges and universities
Entrants to the workforce from resources other then school may include people seeking
part time jobs.
Students seeking work to pay for their education
Employees returning from military services
Jobs seeks who have been recently laid off
Migrations into the country
Migrations out of the country
Demand and supply of HR
The objectives of employment planning are to bring together the forecasts of future
demands for workers and the supply for human resources, both current and future.
The result of the effort is to pinpoint shortages both on member and in kind to highlight areas
where overstaffing may exists.
Implementation of HR
As define earlier HRP is a process of determining and organizations HR needs.
HRP can be implemented as follows
Define organization mission
Establish corporate goals and objectives
Asses current HR
HRMS job analysis
Compare demand and supply of HR
Demand for labor
Supply of HR
Demand exceeds supply
Supply exceeds demand
Recruitment
decruitment
OUT COMES
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Job analysis and design
2.3 Job analysis
Definition
1-“Provide information about jobs correctly being done and the knowledge, skills and
abilities that individuals need to perform the job adequately’’
2-‘’ Job analysis is the systematic process of collecting and making judgments about all
important information related to job. Job analysis is the procedure through which u
determine the duties and nature of the jobs and the kinds of people who should be hired for
them. Utilize the information it provides to write job descriptions and job specifications that
are utilized in recruitment and selection, completion, performance appraisal and training’’
3-‘’Job analysis is the process of determining by observation and study and reporting
pertinent about a specific job’’
Explanation
It include the identification of the tasks performed, the machines and equipment
utilized, the materials product or services involved , the training, skills, knowledge, and personal
traits required of the writer.
Basic terminology
Lets define the term used during discussion of the job analysis
1-Job
A group of tasks that must be preformed if an organization is to achieve its goals.
2- Position
The tasks and responsibilities performed by one person, there is opposition for every
individual in an organization.
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3- Tasks
A distinct, identified able work activity composed of motion.
4-Duty
A larger work segmented composed of several tasks that are performed by an individual
5-Responsibility
An obligation to perform certain tasks and duties.
Job analysis process
The job analysis process has the following steps
3. 1-Identify how the information will be used because that will determine what idea will
be connected and how it will be collected. Interviewing and position analysis
questionnaire and some examples of the data collection techniques.
4. 2-Review relevant background information such as organization chart, process chart,
and job descriptions.
5. 3-Select representative positions to analyze because there may be too many similar jobs
to analyze and it may not be necessary to analyze them all.
6. 4-Analyze the job by collecting data on the activities, required employee behaviors,
working conditions and human traits and abilities needed to perform the job.
7. 5-Review and verify the job analysis information with job incumbents to confirm that is
factually correct and complete.
8. 6-Develop a job description and job specification from the job analysis information
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Structure
Job analysis procedures following three important documents
Job description
Job specification
Job evaluation
1-Job description
A job description is a written statement of what the job holder actually does how he or she
does it , and under what conditions the job is performed. There is no standard format for
writing job descriptions but most descriptions include sections an;
9. Job identification
10. Job summary
11. Relationship, responsibilities and duties
Understand the purpose of the job analysis
Job description and job specification develop.
Review and verify job analysis information
Determine how to collect job analysis information
Understand the roles of jobs in the organization
Identify and analyze the position
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12. Authority of incumbents
13. Standards of performance
14. Working conditions
15. Job specification
2-Job specification
A job specification is a document containing the maximum acceptable qualifications that
a person should possess in order to perform a particular job. Items typically included in the job
specification are educational requirements, experience, personality traits, and physical abilities.
3-Job evaluation
In job evaluation process the worth of job is identified based upon job comparability and
according to worth , importance of job and relative value compensation is designed and
selected. It suggest about the relevant importance of a particular job in organization.
Job analysis
Job description
A statement containing items such as…
Job title
Location Machines, tools,
equipment, material & forms used
Supervision given or retired working conditions
hazards
Job specification
A statement of human qualification necessary to do the job. Usual conditions such as
Education
Experience
Training
Judgment
Initiative
Physical effort
Physical skills
Responsibilities
Communication skills
Job evaluation
A statement that specifies the relative values of each job in the organization
Compensation Administration
Demand match in terms of skills, knowledge and abilities
Provide valuable information
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Job analysis – uses
Job analysis can be put in to following uses
1-Staffing
All areas of staffing would be hazards if the recruiter did not know the qualifications
needed to perform.
2-Training and development
If the specification suggests that the job requires a particular knowledge, skill or ability
and the person filling the position does not possess all the qualification required, training or
development is probably in order.
3-Compensiation and benefits
The relative value of a particular job to the company must be known before a dollar
value can be placed on it. From an internal prospective the more significant its duties, the more
the job is worth.
4-Safty and health
Information derived from job analysis is also valuable in identifying safety and health
considerations.
5-Employees and labor relation
Regardless of whether the firm is unionized, information obtained through job analysis
can often lead to more objective human resource decisions
6-Legal consideration
Having properly accomplished a job analysis is particularly for supporting the legality of
employment practices.
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7-Discovering un-assigned duties
Job analysis can help reveal un-assigned duties
Job analysis-Methods
Job analysis traditionally has been connected in a number of different ways. Also firms
differ in their needs and in the resources they have for collecting job analysis information.
Method of collecting job analysis
Introduction
1-In HR specialist can (an HR specialist, job analyst, or consultant) a worker and the
workers supervisor usually work together in conducting the job analysis.
2-Job analysis data is usually collected from several employees from different departments,
using interviews and questionnaires. The data is then averaged, training into account the
departmental context of the employees to determine how much time atypical employee
spends on each of several specific tasks.
1-The interview
1- The three types of interviews managers use to collect job analysis data are
Individual (to get the employees perspective on the jobs duties and responsibilities
Group (when large numbers of employees perform the same job.)
Supervisor (to get his / her perspective on the jobs duties and responsibilities.)
2-the pros of using interview are that it is simple, quick, and more comprehensive
because the interviewer activities they may never appear in written form.
3-The following questions are some examples of the typical questions
What is the job being performed
In what activity do you participate etc.
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4-The following are interview guidelines
Job analysts and supervisor should identify the workers who know the job best
and would be objective.
Follow a structured guide or checklist
Review and verify the data
2-Questionrarie
This method is used to evaluate jobs in minimum time. In this technique a detailed
questionnaire is prepared and then distribute among employees who fill it and return
questionnaire to their supervisor.
Structured or unstructured questionnaires may be used to obtain job analysis information.
Questionnaires can be a large number of employees can be a quick, efficient ways of gathering
information from a large number of employees, but developing and testing questionnaire can
be expensive and time consuming.
3-Observation
1-Direct observations are useful when jibs consist of mainly observable physical activity
as opposed to mental activity.
2-Managers often use direct observation and interviewing together. Although observation is
most commonly used method of gathering information but it is not possible to use the
observation method alone.
4-Participant dairy/ legs
1-The employees record every activity he/she engage sin in a dairy or log along with the
amount of time to perform each activity to produce a complete picture of the job.
2-Employees may toy to exaggerate some activities and underplay others.
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5-Checklists
The check list method can be used in large organizations that have a large number of
people assigned to the some or similar jobs. The staff groups prepares check lists for various
jobs. When check list is prepared it is sent to all employees are required to check all listed tasks
that perform and to indicate by check mark amount spent on each task. This technique is costly
and in practical in small organizations.
6-Combination of any two
Using combination of any two methods to organize job is best technique and have
better result.
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2.4 Job design
Meaning
Job design integrates work content (task function relationships) the rewards (extrinsic
and intrinsic) and the qualification required (skills , knowledge , abilities ) for each job in a way
that meets the needs of employees and the organizations.
Work contents / job contents
Job is the collection of tasks and task is a duty or activity performed by a person
Job contents means the activities one has to do at his job.
Job contents are determined by,
The specification of individual tasks.
The specification of methods of performing each tasks
The combination of tasks into specific jobs to be assigned to the individuals
Methods of job design
Each job four method required
Work contents
Tasks
Functions relationships
Rewards
Intrinsic
extrinsic
Job design
Qualifications
Skills
Knowledge
abilities
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1) Work simplification
From work simplification we means ‘’ to make the work more simple by splitting /
dividing it into small fragments’’ or make the work so simple so every one can easily understand
it or develop a simple system keeping in view the polices and economy.
2- Job relation
Relation of job means movement of employee from one job to another job periodically.
In this rotation actual job does not change but employees are changed or employees are
rotated from one job to another job. Job relation is very important in every organization
because if one employee perform the same job whole day. Then he become fed up from that
vary job so in order to interest of the employees it is necessary to change the work of one
employee during his working hours. E.g. we take a most simple example of sweeper hid duty is
to clean all the office and furniture so in order to keep the interest of sweeper it is necessary to
make change during his working hour I.e. he should be ordered for putting the files from one
desk to another. It necessary because it is natural perception that human beings like changes.
3- Job enlargement
Job enlargement means adding more or different tasks to the job or simple tasks are
added to the job that was simple in nature. In simple words we can say that job enlargement
means ‘’ adding simple tasks to a specialized job ‘’ this process is called ‘’ horizontal job
enlargement’’
4- Job enrichment
Job enrichment means deleting to employees certain function to supervision like to plan
, organize , lead , and control the work of his subordinates e.g. in university we take example of
one professor whose duty is to only deliver the lecture so in order to increase efficiency and
motivation if he is appointed as incharge of an ‘’ academic of the department ‘’ so he will work
with more interest. This is often called ‘’ vertical job loading’’ or ‘’vertical job enrichment’’.
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Factor effecting job design
The factors that play a vital role in job design are……
1- Technology
The type of equipment or tools as well as particular work layout and methods, used in
producing goods or services tends to act as constraint. Technology may make job more difficult
or expensive, but not impossible
2- Economic factors
Although job design may be desirable, its cost must constantly be kept in mind and
weighed up against real benefits likely to be obtained.
3- Laws and Government regulation
Law relating to labor, environment or safety which is being violated needs to be
constantly watched.
4- Union pressure
Job design can be affected by the polices and strategies of the union. If not taken into
confidence, the union may perceive job design efforts as attempts by management to squeeze
out of at employee with out wage increases or even as threat to its position and power.
5-Employment potential
It would be purposeless to undertake and elaborate exercise, if the abilities and
motivation level of the workers haven’t reached to the new standards sought to be introduced
6-Management philosophy
Along with a organizational goals and strategies, management is in fact the real key. Top
management is committed to the concept of job design.
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Job analysis
The first function of personnel management is the employment / selection function i.e.
to select the qualified workers in adequate number. It is concerned with recruitment the right
people in the right place at the right time.
This function involves two steps………..
1. Determine of what kind or quality of personnel needed and
2. Determine of number of personnel required
The first duty of personnel department is to find out accurate information about knowledge,
skill, experience etc. that an individual should possess to perform a particular job. It requires
job analysis.
So we can say that job analysis is the process of collecting all facts relating to the nature of
specific job through scientific observation and study.
Definition 01
Job analysis is simple procedure with the help of which a personnel manager collects data for
job or collect information which is related to the job.
Definition 02
The process of obtaining information about the job in the organization.
Definition 03
Job analysis is the process of determination and reporting important information regarding a
specific job.
Definition 04
Knowledge about jobs ad their requirements are collected through the process of job analysis.
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Approaches to job design
There are three important approaches to job design……….
1. Engineering approach
2. Human approach
3. The job characteristics approach
1-Engineering approach
Introduction
The most important single element in the engineering approaches , proposed by FW
Taylor and others , was the task idea.
Definition
The work of every workman is fully planned out by the management at least one day in
advance and each man receives in most cases complete written instruction, describing in detail
the task which he is to accomplish.
Principles of engineering approach
The principle offered by scientific management to job design can be summarized thus……..
1. Work should be scientifically studied. Taylor advocated fragmentation and reutilization
of work to reap the advantages of specialization
2. Worked should be arranged so that workers can be efficient
3. Employees selected for work should be matched to the demands of the job.
4. Employees should be trained to perform the job.
5. Monetary compensation should be used to reward successful performance of the job.
These principles to job design seem to be quite rational and appealing because
they point towards increased organizational performance. Specialization and
reutilization over a period of time result in job incumbents becoming experts rather
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quickly, leading the high levels of out put. Despite the assumed gains in efficiency,
behavioral scientists have found that some job incumbents dislike specialized and
routine job.
Problems with engineering approach
After listening to several complaints from employees about their highly specialized jobs,
Walker and Guest indicated the problems with job specialization thus…………
1-Repitition
Employees performed few tasks repeatedly. This quickly led the employees to become
vary board with the job. There was no challenge to the employees to learn anything new or to
improve the job.
2-Machinical pacing
Assembly line workers were made to maintain a certain regular peace of work. They
could not take a break when they needed to , or simply divert their attention to some other
aspect of the job or another individual.
3- No end product
Employees found that they were not turning out any identifiable end product,
consequently, they had little pride and enthusiasm in their work.
4- Little social interaction
Employees complained that because the assembly line demanded constant, there was
very little opportunity to interact on a causal biases with other employees and share their work
experiences, benefits and sentiments.
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5- No out put
Employees also complained that they had little chance to choose the methods by which
they performed their jobs, the tool which they used , or the work procedures. This of course ,
created little interest in the job because there was nothing which they could improve or
change.
Human relation approach.
The human relation approach recognized the need to design job in an interesting
manner. In the past two decades much work has been directed to changing job so that job
incumbents can satisfy their needs for growth, recognition and responsibility.
Including Herzberg’s Approach research popularized the notion of enhancing needs
satisfaction through what is called job enrichment. One widely publicized approach to job
enrichment uses what is called job characteristics model and this has been explained separately
in the ensuing section.
According to Herzberg there are two types of factors
1. Motivators like achievements, recognition, work itself, responsibility, advancement and
growth and
2. Hygiene factors (which merely maintain the employee on the job and in the
organization) like working conditions, organizational policies, interpersonal relations,
pay and job security.
According to Herzberg the employee is dissatisfied with the job if maintenances factors to
the required degree are not introduced into the job. But the employee may be satisfied even if
the required maintenances factors are provided. Herzberg feels that employees will be satisfied
with his job and he will be more productive if motivators are introduced into the job contents.
As such, he asserts that the job designer has to introduce hygiene factors adequately to reduce
psychological needs of the employees in designing jobs.
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The job characteristics approach
The job characteristics theory of Hackman and Oldham states that employees will work
hard when they are rewarded for the work they do and when the work gives them satisfaction.
Hence they suggest that motivation, satisfaction and performance should be integrated in the
job design.
According to this approach any job can be described in terms of five core job dimensions which
are defined as follows………..
1- Task identity
The degree to which the job allows workers to complete whole tasks from star to finish,
rather then disjointed portions of the job.
2- Skill Variety
The degree to which the job requires that workers use a variety of different activities,
talents and skills in order to successfully complete the job requirement.
3- Task significance
The degree to which the job significantly impacts the lives of others both within and
outside the work place.
4- Autonomy
The degree to which the job allows workers freedom in planning and scheduling and the
methods used to complete the job.
5- Feedback
The degree to which the job itself provides workers with clear, direct and
understandable knowledge of their performance.
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All of the job dimensions impact workers psychologically. The first three dimensions
affect whether or not workers view their job meaningful. Autonomy determines the extent of
responsibility workers feel. Feedback allows for feelings of satisfaction for a job well done by
providing knowledge of results.
Jobs that are high on motivating potential must be high at least in one of the three factors that
lead to meaningful work and must be high in both autonomy and feedback and vice versa.
These three critical psychological states lead to the outcome such as
High internal work motivation
High growth satisfaction
High quality work performance
High general job satisfaction
High work effectiveness
Low absenteeism and turnover
Motivating potential = Skill variety + task identity + task significance X autonomy X feed back Score
Figure 13.1
Core job dimension
Employee’s growth needs strength
Core job dimension
Critical psychological states
Skill variety Task identity Task significance
Autonomy
Feedback
Meaning fullness of work
Responsibility for outcomes of the work
Knowledge of the actual results of the work
High external work motivation
High quality work performance
High satisfaction with work
High work effectiveness
Low absenteeism and turnover
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(Figure 13.1). The model says that internal rewards are obtained by an individual when he
learns that he personally has performed well on a task that he cares about.
Job characteristics model
Ironically the main feature of the job characteristics design method- its intrinsic
psychological motivation – may be its biggest drawback. Supervisors attempting to apply these
principles may discover that many employees these psychological sates are unimportant. In fact
research to date indicates that some employees respond exceedingly well to jobs redesigned
according to job characteristics dimensions, where as for others, it has no discernible impact.
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2.5 Recruitment
Meaning
‘’Recruitment identify sources of potential employees, informing people of job opening
and attracting applicant’s who have the requisite qualifications to perform the jobs’’
Recruitment is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are
submitted.
The process of seeking sources of job candidates.
Relationship between job analysis, recruitment and selection
The follow overview of the recruitment process shows link between recruitment, job
analysis and selection.
Human
Resource
Planning
Specific
requests of
Managers
Affirmative
Action
Plan
Job
Opening
Identified
Job
Analysis
Information
Managers
Comments
Job
Recruitment
Methods
Of recruitment
Satisfaction pool of recruits
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Factors affecting recruitment
It is said that the more applications received the better the recruiter’s chances of finding
an individual best suited to the job requirements. But there are some factors that can limit
recruiting outcomes. Some of these factors are here under.
1- Organizational image
We need noted that positive candidate may not be interested in pursuing job
opportunities in the particular organization. The image of the organization, therefore can be a
potential constraint, a poor image may limit its attraction to applicants.
2- Job attractiveness
If the position to be filled is an unattractive job, recruiting a large and qualified pool of
applicants will be difficult. Moreover, jobs viewed as boring, hazardous, anxiety creating, low
paying or lacking in promotion potential seldom attract a qualified pool of applicants.
3- Internal organizational polices
Internal organization polices, such as ‘’ promote from within wherever possible’’ may
give priority to individuals inside the organization. Such polices, when followed, typically ensure
that all positions, other then the lowest-level entry position, will be filled from within the rank
although this looks good once one is hired, it may reduce the number of applications.
4- Government influence
The government influence in the recruiting process should not be overlooked. An airline
that wants to hire only attractive females for flight attendant positions will find itself breaking
the low if comparably qualified male candidates are rejected on the biases of gender- or female
candidates are rejected on the basis of age.
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5- Recruiting costs
The last constraint, but certainly not lowest in priority, canters recruiting costs.
Recruiting efforts are expensive- costing as much as $10500 per position being filled. Sometime
budget restrictions put a time limit on searches, accordingly when an organizations, like
minimizing its recruiting travel budget by first interviewing employees using conference calls or
through video conferencing.
Methods of recruitment
Following are two main sources of recruitment along with methods used therein
1. The internal search
2. The external search
1-The internal search
Many large organizations attempt to develop their own low-level employees for higher
positions, these promotions can occur through an internal search of current employees who
have bid for the current job been identified through one of the following two main methods.
a) Employee referrals and recommendations
A recommendation from a current employee regarding a job applicant. Employee
referrals are an excellent means of locating potential employees for hard-to-fill positions.
2- Internal job postings
By announcing job within organization by HR department through e-mails putting on by
issuing circulars etc...
Advantages of internal search
1. Provides greater motivation for good performance
2. Provides greater opportunities for present employees
3. Provides better opportunity to assess abilities
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4. Improves morale and organizational loyalty
5. Enable employees to perform the new job with little lost time.
6. It is good for public relation
7. It encourages good individuals who are ambitious.
8. It is less costly then going outside to recruit
Disadvantages of external search
1. Creates a narrowing thinking and stale ideas
2. Creates pressures to complete
3. Creates homogeneous workforce
4. Chances to miss well outside talent require strong management development programs
specially to train for technology.
External recruitment methods
Recruitment methods are the specific means through which potential employees are
attracted to the firm
a) Advertising
A way of communicating employment needs within the firm to public through media
such as radio, newspaper, television, industry publications, and the internet.
Sometimes organizations can perform the recruitment function through blind advertisements
in blind advertisement no identification about the company is provided to applicants.
Companies can use blind advertisement for many reasons e.g.
Company wants to keep the recruitment in low profile so that lesser number of
applicants should apply in order to discourage the irrelevant people
Due to bad reputation or image of the organization
Advertisement in made just for the purpose of test marketing for example just to have
knowledge about the supply of applicants in labor market etc.
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b) Employment agencies
An organization that helps firms recruits employees and, at the same time, aids individuals
in their attempt to locate job. There are two types of employment agencies I,e.
1. Public employment
2. Private employment
c) Recruiters
The most common use of recruiters is with technical and vocational schools, community
college, colleges, and universities.
d) Special Events
It is a recruiting method that involves an effort on the part of a single employer or group
of employers to attract a large number of applicants for interview.
e) Internships
A special form of recruiting that involves placing student in a temporary job. There is no
obligation on the part of the company to permanently hire the student and no obligation on the
part of the student to accept a permanent position with the firm. Hiring college student to work
as student interns is typically viewed as training activity rather then as a recruiting activity.
However, organizations that sponsor internship programs have found that such programs
represent an excellent means of recruiting outstanding employees.
f) Executive search firms
Executive search firms sometimes called HEAD HUNTERS are specialized from of private
employment agencies that place top level executives and experienced professionals. There the
organizations that seek the most- qualified executive’s available for a specific position and do
generally retained by the company need a specific type of individual.
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g) Professional associates
Associations in many business professions such as finance, marketing, informational
technology, and human resources provide recruitment and placement services for their
members. Professional associations and trade organizations provide a valuable service in
bringing together professional and professional job opening. Most professional organizations
have newsletters, annual meetings and trade publications that adverse job opening. The annual
meetings of these organizations are good occasion for professionals to learn about available job
openings and for employers to interview potential applicants.
h) Unsolicited walk-in Applicants
If an organization has the reputation of being a good place to work, it may be able to
attract good prospective employees without extensive recruitment efforts.
i) Open houses
Firms pair potential hires and managers in a warm, casual environment that encourages
on-the-spot job offers
j) Event recruiting
Attend the events that the people you are seeking go to.
k) Virtual job fairs
Individuals meet recruiters face to face in interviews conducted over special computers
that have lenses that transmit head-and shoulder image of both parties
l) Cyber recruiting
Organizations can also use websites and internet sources to recruit people application
submission test and interview and other recruitment and selection activities can be performed
online.
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Advantages of external recruitment
1. Provide new ideas and new insights.
2. Provides greater diversity and help achieve EEO goals by making affirmative action easy
3. Provide opportunities to handle rapid growth if the organization
4. Opportunities to get people with up-to-date knowledge education and training
Disadvantages of external recruiting
1. It is more expensive and time consuming
2. Destroy incentives of present employees to strive for promotion
3. More chances to commit hiring mistakes due to difficult applicants assessment that will
lead to wastage of resources
E) Alternatives to recruitment
When an organization decides to add personnel to its staff it makes a significant
financial investment. Recruitment and selection costs are high, especially for professionals,
technical and managerial employees. Therefore before an organization decides to recruit new
employees, it ought to consider the feasibility of other alternatives.
i) Outsourcing
Outsourcing is the process of transferring responsibility for an area of services and its
objectives to an external services provider instead of internal employee.
ii) Contingent workers
It is also known as part timers, temporaries, and independent contractors, comprise the
faster- growing segment of our economy
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iii) Employee leasing
Using this approach a firm terminates some or most of its employees. A leasing
company then hires them, usually at the same salary, and leases them back to the former
employer, who becomes the Clint.
iv) Overtime
Perhaps the most commonly used method of meeting short-term fluctuations in work
volume is through the use of overtime.
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2.6 Selection
Selection
Selection is the process of choosing from a group of applicant those individuals best
suited for a particular position. Most managers recognize that employee selection is one of
their most difficult and most important business decisions. This process involves making
judgment-not about the applicant, but about fit between the applicant and the job by
considering knowledge, skills and abilities and other characteristics required to perform the job
selection procedures are not carried out through standard pattern and steps in this. Process can
vary from organization to organization some steps performed and considered important by one
organization can be skipped by other organization.
Selection criteria
Mostly the selection of applicant depends upon the following factors or criterions
1. Education
2. Competencies
3. Experience
4. Skills and abilities
5. Personal characteristics
Validation of selection criteria
We will emphasize these elements as they relate to employment test, but they are
relevant to any validation of selection criteria
1-Relaibility
A selection device’s consistency of measurement.
2- Validity
The proven relationship of a selection device to relevant criterion
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3- Content validity
The degree to which test content, as a sample, represents a;; situations that could have
been include, such as a typing test for clerk typist.
4- Construct validity
The degree to which a particular trait relates to successful job performance, as in IQ
test.
5- Criterion- related validity
The degree to which a particular selection device accurately predicts the important
elements of work behavior, as in the relationship between a test score and job performance.
6- Predictive validity
Validating tastes by using prospective applicants as the study group.
7-Concurrent validity
Validating tests by using current employees as the study group
8- Cut score
A scoring point below which applicants are rejected.
Selection process
The selection process typically begins with the preliminary interview; next, candidates
complete the application for employment. They progress through a series of selection tests, the
employment interview and reference and background checks. The successful applicants receive
a company physical examination and are employed if the results are satisfactory. Several
external and internal factors impact the selection process, and the manager must take them
into account in making selection decisions. Typically selection process consists of the following
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steps but it is not necessary that all organization go through all these steps as per requirement
of the organization some steps can be skipped while performing the selection process.
1. Initial screening
2. Application blank
3. Pre-employment testing
General intelligence tests
Attitude tests
Personality and interest test
Achievement test
Honesty test
4. Interview
Structured interview
Unstructured interview
Mixed interview
5. Background checks
6. Conditional job offer
7. Medical exam / drug tests
8. Final selection decision
1-Initial screening
The selection process often begins with an initial screening of applicants to remove
individuals who obviously do not meet the position requirements. At this stage, a few
straightforward questions are asked. An applicant may obviously ne unqualified to fill the
advertised position, but well qualified to work in other open positions. The purpose of
screening so to decrease the number of applicants being considered for selection
Final selection decision
Medical exam / drug tests
Conditional job offer
Background checks
Interviews
Pre-employment testing
Application blank
Initial screening
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Sources utilize in the screening effort
Personal resume presented with the job applications is considered as source of information
that can be sued for initial screening process. It mainly includes information in the following
areas.
Employment and education history
Evaluation of character
Evaluation of job performance
Screening interviews
Screening interviews are used to,
To verify information provided on resume or application blank
They are usually vary short ( approximately 30 minutes or so)
Advantages of successful screening
If the screening efforts are successful those information do not meet minimum,
required qualifications will not move to the next stage in the selection process. Companies
utilizing expensive selection procedures put more efforts= in screening to reduce costs.
2- Application blanks / review of applications
Application blank is a formal blank record of an individual’s application for employment.
The next step in the selection process may involve having the prospective employee complete
an application for employment. The specific type of information may vary from firm to firm and
even by job type within an organization. However, the application forms must reflect not only
the firm’s informational needs but also EEO requirements. Application forms are good way to
quickly collect verifiable and fairly accurate historical data from the candidate
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3- Types of employment tests
Individuals differ in characteristics related to job performance. These differences which
are measurable, relate to cognitive abilities, psychomotor abilities, job knowledge, work
samples, vocational interests, and personality. Various tests measure these differences.
a) Cognitive aptitude tests
It measures an individuals ability to learn, as well as to perform a job-related abilities
may be classified as verbal, numerical, perpetual speed, spatial, and reasoning.
b) Psychomotor abilities
This type of test is use to measure strength, coordination, and dexterity. It is feasible to
measure many abilities that are involved in many routine production job and some office jobs.
c) Job knowledge tests
This sort of test is designed to measure a candidate’s knowledge of the duties of the
position for which he or she is applying.
d) Work-sample tests (Simulations)
It identifies the task or set of tasks that are representative to of the job. The evidences
concerning these tests, to date, is that they produce high predictive validity, reduce impact, and
are more acceptable to applicants.
e) Vocational interest’s tests
It indicates the occupation in which a person is most interested and is most likely to
receive satisfaction.
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f) Personality tests
It is a selection tools, personality tests have not been as useful as other types of tests.
They are often characterized by low reliability and low validity. Because some personality tests
emphasize subjective interpretation, the services of a qualified psychologist are required.
g) Drug and Alcohol testing
Basic purpose of drug testing programs contends that it is necessary to ensure
workplace safety, security and productivity
h) Genetic teasing
As genetic research progress, confirmed link between specific gene mutations and
diseases are emerging. Genetic testing can now determine whether a person carries the gene
mutation for certain diseases including hart disease, colon cancer, and hunting’s disease.
i) Honest test
For many years, another means used to verify background information has been the
polygraph, or lie detector test. One purpose of the polygraph was to confirm or refute the
information contained in the application blank. Special test have been constructed to measure
the orientation of the individual toward the issue of the honesty and personal integrity.
Honesty test is the most frequently used psychological tests in industry. These tests contain
questions regarding such situations as whether a person who has taken company merchandize
should be trusted in another job that involves handling company money. An individual’s
response to the test statements indicates the individual’s attitudes toward the theft,
embezzlement, and dishonest practices. Extensive research has shown that some of these
instruments not only produce reliable information that validly predicts dishonest behavior, but
that they also are free from biases of age, sex, and race. These honesty tests represent a
valuable tool for choosing employees who will occupy positions that involve handling company
money.
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j) Interest testing
The interest is being increasingly used to test various skills required by applicants.
4- Job interview
Interview is a goal oriented conversation in which the interviewer and applicant
exchange information. The employment interview is especially significant because the
applicants who reach this stage are considered to be the most promising candidates
Types of interview
Interview may be classified in two types by the degree to which they are structured.
A) The unstructured interview (Nondirective) interview
Unstructured interview is an interview where probing, open-ended questions are asked.
This type of interview is comprehensive, and the interviewer is encourages the applicant to do
much of the talking.
B) The structured (Directed or patterned) interview
An interview consisting of a series of job related questions that are asked consistently of
each applicant for a particular job is known as structured interview. A structured interview
typically contains four types of questions.
Situational questions
Pose a hypothetical job situation to determine what the applicant would do in that situation.
Job knowledge question
Probe the applicant’s job-related knowledge
Job- sample simulation questions
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Involve situations in which an applicant may be actually required to perform a sample task from
the job
Worker requirements questions
Seek to determine the applicant’s willingness to conform to the requirements of the job.
c) Behavior description interviewing
A structured interview that uses questions designed to probe the candidate’s past
behavior in specific situations. It avoids making judgments about applicants personalities and
avoids hypothetical and self-evaluative questions. Benchmark answers derived from behaviors
of successful employees are prepared for use in rating applicant responses. Questions asked in
behavior description interview are legally safe because they are job related.
5-Methods of interviewing
Interview may be conducted in several ways.
A) One-on-one interview
In a typical employment interview, the applicant meets one-on-one with an interviewer.
As the interview may be a highly emotional occasion for the applicant, meeting alone with the
interviewer is often less threatening.
B) Group interview
Several applicants interact in the presence of one or more company representatives
C) Board interview
One candidate is interviewed by several representative of the firm
D) Stress interview
Intentionally creates anxiety to determine how an applicant will react to stress on the job.
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6- Realistic interview
RJP conveys job information to the applicant in an unbiased manner, including both
positive and negative factors.
7-How to avoid common interviewing mistakes
a) Snap judgment
This is where the interviewer jumps to conclusion about the candidate during the first
few minutes of the interview. Using a structured interview is one way to help avoid this, as well
as properly training the interviewers
b) Negative emphasis
When an interviewer has received information about the candidate, through references
or other sources, he or she will almost always view the candidate negatively. The best way to
avoid this is to keep references or other information from interviewer. if possible, have
different people do the reference checks and the interviews and not share the information until
afterwards.
c) Poor knowledge of the job.
When interviewer does not have a good understanding of the job requirements, they do
not make good selections of candidates. All interviewers should clearly understand the jobs and
know what is needed for success in those jobs.
d) Pressure to hire
Anytime an interviewer is told that he or she must hire a certain number of people
within a short time frame, poor selection decisions may be made. This type of pressure should
be avoided whenever possible.
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e) Candidate order
(Contrast) error. When an adequate candidate is preceded by either an outstanding, or
a poor candidate, by contrast he or she looks either less satisfactory or much better. This can be
countered through interviewer training, allowing time between interviews and structured
rating forms.
f) Influence of non-verbal behavior
Candidate who exhibit stronger non-verbal behavior such as eye contact and energy
level are perceived as stronger by the interviewers. This can be minimized through interviewer
training and structured interviews.
Guideline for conducting interview
Plan the interview
Establish rapport
Ask questions
Close the interview
Review the interview
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Part III
Training and development of human resource
3.1 Orientation
Definition
Objectives
Essential
Outcomes
3.2 Training
Introduction
Training
Importance of training
3.3 Training methods
On-the- job
Vestibule
classroom
3.4 Training and learning
Definition
What is learning?
Theories of learning
4.5 Evaluating training and development effectiveness
4.6 placements
4.7 development
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3.1 Orientation
Introduction
Activities that introduce new employees to the organization and their work unit.
Definition
‘’ Orientation is the guided adjustment of employee to the organization and work environment’’
Who is responsible for orientation?
Two people are responsible for orientation.
New employees supervisor
The people in HRM
Why orientation?
Orientation is important because it helps an employee to understand ‘’ organization
culture’’
Organization culture
The system of sharing meaning with in organization that determines how employees act
An employee who has been properly socialized to the organization’s culture knows what
acceptable behavior is and what is not.
Objectives of orientation
The objectives of orientation are multifaceted.
1. Create favorable attitude of new employee towards company, its polices and its
personnel.
2. It creates a feeling of belonging and acceptance.
3. It can minimize rules violations discharge, grievances and misunderstandings.
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How it is responsible for orientation
After an employee is hired both the personnel department and the supervisor are
responsible for orientation.
The role of supervisor is to introduce new employee with old ones and with work environment.
He should tell him / her about nature of duties and introduce with him and co-workers.
The personnel department of orientation program and its execution.
Essential contents of orientation program.
An orientation program should consist of following information and actions.
1. Company history, polices, practices
2. Company products
3. Company plants and faculties
4. Organizational structure
5. Employee responsibilities to company
6. Pay treatment
7. Rules of conduct
8. Tour of department
9. Work schedule
10. Collective bargaining agreement
11. Benefits plans- like insurance
12. Safety programs
13. Training opportunities
14. Promotion policy
15. Introduction to fellow employees
16. Establishment of feeling of belonging, acceptance
17. Employee appraisal system
18. Work assignment.
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Out comes or orientation programs
A successful orientation program in...
1. Removal of anxiousity of new employee
2. Removal of their hesitation
3. Making new employees to discuss problems with their supervisor
4. Making new employee friendly, by giving them sense of belonging.
3.2 Traning
Introduction
To operate organizations, large or small requires staffing with competent personnel. A
person will be competent if he or she is well trained. Now let’s see what is training.
Definition of Training
‘’Training is the organized procedure by which people lean knowledge and or skills for a definite
purpose’’
The objective of training is to achieve a change in the behavior of those trained.
Training is different from education. Education is broader in scope. Its purpose is to develop the
individual. Commonly education is considered to be formal education is a school, college or
university whereas training is vocationally oriented end occurs in a work organization.
Importance of training
Training is vital and necessary activity in all organizations. It plays a large part in
determining the effectiveness and efficiency of the organization. Lets see benefits of training
for an organization
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1- Reduce training time to reach acceptable performance
By having qualified instructors and carefully controlled learning situation, management
can be able to shortened learning periods of new employees.
2-Improve performance on present job
Training applies not only to new employees but experienced people as well as the
performance of present employees can be improved by giving them training.
3-Attitude formation
A common objective of company training programs is to molding of employee attitudes
to achieve support for company activities and to obtain better corporation and greater loyalty.
4- Aid in solving operational problems
Operational problems in an organization can be reduce turnover, absenteeism,
accidents, grievance rates, low morale etc. by training in of the both supervisors and hourly
paid employees can help in solving these operational problems.
5-Fill manpower needs
If an organization found difficult to recruit skilled people, then to solve this problems in
long run, it should give training to its existing employees in order to make them more skilled.
6- Benefits to employees themselves
Training is not only beneficial for organization but also for employees themselves.
Because training increase their knowledge and skill which in turn increase the market value of
employees.
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3.3 Training methods
Training methods
There are many methods of training which method will be used it depends on such
factors , cost, time available, number of persons to be trained, depth of knowledge required,
background of the trainees and many other factors.
1- On the job
On the job training means training employees while performing their jobs. It is normally
done by the supervisor
It is the duty of supervisor to construct an on- the- job training programs. He can trained people
through himself or through an other experienced employees. The instructor of the training
should be well aware of that job related knowledge and skills. The ads and technologies that
can be used by an instructor during on the job training are procedure charts, pictures, manuals,
sample problems, demonstrations, oral and written explanations and tape recordings.
Benefits of this method
1. Give practical experience of actual work conditions
2. Useful for unskilled and semiskilled people
3. Less costly
4. Useful in giving training of technical nature thing.
Methods of training
2) Vestibule 3) Classroom 1) On the job
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Drawbacks
1. You can give training to only few employee at a time
2. Untrained employee can damage costly machinery
2- Vestibule training
Vestibule training is the term used to destitute training in a class room for semiskilled
production and clinical jobs.
This method is appropriate when a large number of employees must be trained at the same
time for the same kind of work. When this method is used the management should be well
qualified. In this method emphasis tends to be upon learning rather then production. In this
method the learning condition should be controlled carefully.
3- Class room method
Class room instruction is useful to learn philosophy, concepts, attributes, theories and
problem solving abilities.
There are many classroom instruction techniques. These are…
a) Lecture
Lecture is a formal organized talk by the instructor a group of students. The lecturer is
presumed to possess a considerable depth of knowledge of the subject at hand.
The main benefit of this technique is that it can be used for very large groups and thus the cost
per trainee is low.
Limitation of this method
Lecturers are passive
It ignores principle of learning by doing
It is one way communication
There is no feed back from audience
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It may be above or below the audience level of training
These lectures must be used with other techniques in order to gain fruity results.
b) Conference
A conference is small group meeting, conducted according to an organized plan in which
the leader seeks to develop knowledge and understanding by obtaining a considerable amount
of oral participation from the trainees or students
It overcomes the limitations of lecture such as
1. Lectures are optimistic because they play active role
2. It provides feed back
3. It seeks contribution from students
There are three basic kinds of conferences
1. The directed conference
2. The consultative conference
3. The problem solving conference
c) Case study
In this method a problem is assigned to students by instructor. The student study this
problem and give suggestion to solve problem on the basis of their theatrical knowledge. Infect
it is practical implementation of theoretical knowledge.
The case study method of instruction provides for learning by doing. This method is useful for
developing analytical thinking and problem-solving ability.
d) Role playing
In the role playing two or more trainees are assigned parts to play before the rest of the
class. There is no lines to memorize and no rehearsals. The role players are provided with either
written or oral descriptions of a situation and the role they are to play.
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This technique is widely used in ‘’’human relation’’’ and ‘’’leadership’’’ techniques. It gives
opportunity to a trainee to perform just like as he is actually facing a particular situation
This technique should be used with other techniques.
e) Programmed instruction
Programmed instruction is also called teaching machine. The key features of this method
are..
1. Students learn at their own pace
2. Instructions are not a key part of learning
3. The material to be learned is broken down into small units or stages.
4. Each step logically builds upon those that have preceded it
5. The student is given immediate knowledge of result for each answer given.
6. There is active participation by the learner at each step in the program
f) Computer- assisted instruction
Instruction through computerized presentation by the use of studies. In this method it is
easy for learner to gain knowledge.
It is costly method but it helps the conveying knowledge easily.
g) Learner controlled instruction
Learner controlled instruction (LCI) is a relatively new method of training in which the
trainees are given considerable choice in determining for themselves the pace at which they
learn, the sequencing of the learning steps, the methods used in the process, and the
evaluation of their own learning. A large variety of learning methods are media are made
available to the trainees. These can include books, films, etc.
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h) Simulation and games
A simulator is any kind of equipment that duplicates as nearly as possible the actual
condition encountered on the job. Like aircraft pilots training is done in flight simulators
Games especially business games is very popular source of learning. In business games player
feed his or her decision data and see results of his or her decision.
3.4 Training and learning
Definition of learning / meaning
‘’Any relatively permanent change in behavior that occurs as a result of experience’’’
What is learning?
Our organization has several components that deserve clarification.
1. First learning involves change. Change may be good or bad from an organizational point
of view
2. Second the must be relatively permanent
3. Third our definition is concerned with behavior, learning takes place when there is a
change in action
4. Finally experience is necessary for learning, experience may be acquired directly
through observation or practice, or it may be acquired indirectly as through reading.
Learning / experience curve
Experience and learning goes parrell. The more we have experience the more we have
learning. Experience may be acquired through practice or through observation and reading.
When experience brings in permanent change in behavior then we say learning has taken place
.
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Theories of learning
Three theories have been offered to explain the process by which we acquire pattern of
behavior.
1. Classical conditioning
2. Operant conditioning
3. Social learning
1- Classical conditioning
A type of conditioning in which a individual responds to some stimulus that would not
ordinarily produced such as response.
2- Operant conditioning
A type of conditioning in which desired voluntary behavior leads to a reward or prevents
a punishment.
3- Social learning
‘’’Individual can also learn by observing what happens to other people and just being told about
some thing, as well as by direct experience’’’
Experience
And
Learning
Learning
Experience
Time
O
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Example
We learned comes from watching modules – parents, teachers, peers, television,
performers, and bosses. We can learn through observation and direct experience has been
called social learning theory.
2.5 Evaluation of training efforts
If management invests in training programs for employees, it understandably expects to
see some tangible benefits derived there from.
When training director approaches top management can ask about the effectiveness of training
in organization operation.
We can measure the training benefits or we can evaluate training effort using following
approaches.
First approach
One approach is to pass on questionnaire to the trainees at the completion of the
program to obtain their opinions as to its worth.
Second approach
Second approach is to measure the knowledge / skill before training and again measure
after training, then compare the results.
Third approach
A better way of measuring the worth of training is to use various indexes of work
performance and compare these indexes before training and after training.
Fourth approach
This approach most refined method for evaluating training. This approach measure
performance before and after training for both a control group and experimental group.
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This procedure can be accomplished by selecting two groups of employees that are
approximately equal in education, experience skills etc. subject one group to the training
program and give no training to the other (control) group and compare results or after training
use some measures of comparison with before training.
3.5 Placement
Definition
Placement is the assignment or reassignment of an employee to new job.
Types of placement
There are three types of placement
1- Promotion
Assumption occurs when an employee is moved from a job to another position that is
higher in pay, responsibility and / or organizational level. Generally, it is given as a recognition
of a person’s past performance and future promise.
a) Merit-based promotion
Merit-based promotions occur when an employee is promotes because of superior
performance in the current job.
b) Seniority-based promotion
In this case senior employee gets the promotion ‘’senior’’ in this case means the
employee who has the largest length of service with the employer.
2-Transfers
Transfer occurs when an employee is moved from one job to another position that is
relatively equal in pay, responsibility, and / or organizational level.
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3- Demotions
Demotions occur when an employee is moved from one job to another position that is
lower in pay, responsibility, and / or organizational level.
3.6 Separations
Definition
A separation is a decision that the individual and organization should part. It may be initiated by
the employer or the employee. Additionally it may be motivated by disciplinary, economic,
business or personal reasons.
Forms of separation
There are four forms of separation
1- Temporary leaves of absence
Employees sometimes need to leave their jobs temporarily. The reasons may include
medical, family, educational , recreational and other motives
2- Attrition
Attrition is the normal separation of people from an organization as a result of
resignation, retirement or death. It is initiated by the individual worker not by the company.
3- Lay offs
Layoffs entail the separation of employees from the organization for economic or
business reasons. It occurs because of restructuring such as downsizing or mergers ands
acquisitions.’ Golden shake hand’’ is example of layoffs.
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4-Termination
Termination is a board term that an employees permanent separation from the
organization for any reason. Usually this term implies that the person was forced as a form of
discipline.
3.7 Development
Employee development
Employee development is more future oriented and more concerned with employee
education. By education we mean that employee development activities attempt to instill
sound reasoning process I.e. to enhance once ability to understand and interpret knowledge.
Employee development helps employee to ‘’ think and understand’’
Employee development is predominantly an education process rather then a training
process.
Management development
Management development is that part of employee development in which potential
management personnel gets training in specific skills related to managing I.e. loaning,
organizing, leading, controlling and decision making
Management development methods
There are three main methods
1. Lecture, courses and seminars
2. Simulations
3. Outdoor training
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1- Lecture, courses and seminars
It is a traditional method of management development which revolves around formal
lecture courses and seminars. These help individuals acquire knowledge and develop their
conceptual and analytical abilities.
2- out door training
The primary focus of such training is to teach trainees the importance of working together
of jelling as a team. The purpose of such training is to see how employees react to the
difficulties that nature presents to them.
Do they face these dangers alone?
Do they ‘’ freak’’?
Are they controlled and successful in achieving their goals?
Development techniques
There are three main employee development techniques
1. Job rotation
2. Assist to position
3. Committee assignment
1- Job rotation
Moving employees horizontally or vertically to expand their skills, knowledge, or
abilities. Job rotation is also a tool to remove bore don attacked with a job and broaden an
individuals exposure to company’s operations.
2- Assessment to positions
Employees with demonstrated potential sometimes work under a seasoned and
successful manager often in different areas of the organization working as staff assessments
these individuals perform many duties under the watchful eye of a supportive coach. In doing
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so, these employees’ experiences a wide verity of management activities and are groomed for
assuming the duties of the next higher level.
3- Committee assignment
Committee assignments can allow the employee to share in decision making, to learn by
watching others and to investigate specific organization problems. Temporary committees
often act as a taskforce to alternative solutions and recommend a solution. These temporary
assignments can be both interesting and rewarding to the employee’s growth.
Organizational development vs. organizational change
Organizational development (O.D)
‘’ The part of HRM that address system wide change in the organization’’ in other words
‘’OD facilities long-term organization-wide change’’
Its focus is to constructively change attitudes and values among organizational members so that
they can more rapidly adapt to and be affective in achieving the new directions of the
organization.
Organization change
Organization change means change in business strategic direction
Change usually affects four areas
1. The organization’s system
2. Its technologies
3. Its processes
4. Its people
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Organizational development vs. organizational change
Organizational change constructively change business’s strategic direction and
organization development is used as instrument to bring about the change how this happen
The effects of change become organizational culture issues. Accordingly, OD efforts help ensure
that all organization members support the new culture and assist in bringing the new culture to
fruition
3.8 Career planning and development
Meaning and importance
Career definition
A career is a lifelong sequence of jobs integrated with the attitudes and motives of the
person as he or she engages in these work roles
Career planning
Career planning is a subset of career development. ‘’it is the personal process of
planning. This include evaluating one’s abilities and interests examining career opportunities
setting career goals and planning appropriate developmental activities.’’
Career development
Definition
From employment prospective/ individual
‘’ career development is the planning of one’s career and the implementation of career plans by
means of education, training, jobs search and acquisition and work experience’’
From organizational prospective
‘’career development is the process of guiding the placement, movement and growth of
employees through assessment, planned training activities and planned job assignment’’
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Importance of career planning and development
Career planning and development process is important because
It helps in meeting individuals career aspiration
It helps in meeting organizations objectives and goals.
It provides opportunity for companion of ones abilities with job requirements.
It helps in putting right people at right job.
Helps in employee growth and development.
The value of effective career development
Effective career development has value for both
Value for Organizations
Value for Individuals
1-Value for organization
Effective career development is valuable for organization because,
1-Needed talent will be available
Career development efforts are consistent with and a natural extension of strategic and
employment planning. Changing staff requirement.
2) The organization ability to attract and retain talented employee
Outstanding employees will always be scare and competition to secure their services
considerable.
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3- Minorities and women have comparable opportunities for growth and development
EEO legislation and affirmative- action programs have demanded that minority groups
and women receive opportunities for growth and development that will prepare them for
greater responsibilities within the organization
4- Reduced employee frustration
Although the workforce educational level has risen so too have occupational aspiration.
However as periods of economic stage nations increase organizations efforts to reduce costs
they also reduce opportunities.
5- Organizational good will
If employees think their employing organizations care about their long term well-being,
they tend to response in kind by projecting positive images of the organization.
6- Enhance cultural diversity
The workforce in next decade will continue to reflect a more varies combination of race,
nationality, gender and value in the organization
2- Value for the individuals
Career development is valuable for an individual employee because it adds to his / her
value by enhancing its skills, knowledge and capacity.
Career development stages
Many authors have attempted to map out the ideal stages of a successful career and in
this section we loosely use the five stages outlined by Greenhouse and Callahan (1994).
Few careers follow such an idealized pattern, and even historically such a pattern did not apply
for all employees. However, the stage approach offers a useful framework for understanding
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Career choices
The best career choice offers the best match between what you want and what you
need. A good career match then let us develop a positive self-concept and to do word that we
think is important.
Let’s look at some of the exiting research that can help us to discover which careers may
provide the best match for our skills.
1. Holland vocational Preferences:
One of the most widely used approaches to guide career choices is the Holland
Vocational Preferences model. This theory consists of three major components.
First: Holland found that people have varying occupational preferenc3es; we don not all like to
do the same things.
Second: his research demonstrates that if you do a job you think is important, you will
be a more productive employee.
Third: you will have more in common with people who have similar interest patterns
and less in common with those who don’t.
This model identifies six vocational themes.
1. Realistic
2. Investigative
3. Artistic
4. Social
5. Enterprising
6. Convential
An individual’s occupational personality is expressed as some combination of high and low
scores on these six themes. High scores indicates that you enjoy those kinds of activities
2. The Schein Anchors:
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Edgar Schein has identified following personal value clusters/anchors.
1. Technical-functional competence
2. Managerial competence
3. Security-stability
4. Creativity and
5. Autonomy-independence
Most people have two or three value clusters that are important to them. If an organization
satisfies two out of three that is considered a stable match.
Jung and the Mayers-Briggs Typologies:
It is more widely used method and also called MBIT (Myers-briggs type Indicator). The MBIT
uses four dimensions of personality to identify 16 different personality types based on
responses to an approximately 100-item questionnaire.
Four dimensions are;
1. Extroversion vs. Introversion (EI)
2. Sensing vs. Intuitive (SN)
3. Thinking vs. feeling (TF)
4. Judging vs. Perceiving (JP)
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Let’s develop 16 personality types from above four dimensions in following chart.
Sensing type (S) Intuitive type (N)
Thinking (T) Feeling (F) Feeling (F) Thinking (T)
Intr
over
ts (I
) Judg
ing
(J)
ISTJ ISFJ INFJ INTJ
Perc
eivi
n
g (P
) ISTP ISFP INFP INTP
Extr
aver
ts (E
) Perc
eivi
n
g (P
) ESTP ESFP ENFP ENTP
Judg
ing
(J)
ESTJ ESFJ ENFJ ENTJ
Career planning and pathing:
Career Planning is the process by which one selects career goals and the path to those
goals. Career planning is important and essential to HR department and individuals because;
1. It aligns strategy and internal staffing requirements
2. It develops promotable employees
3. It facilitates international placement
4. It assists with work fore diversity
5. It lowers turnover
6. It taps employee potential
7. It reduces hoarding
8. It satisfies employee needs
9. It assists affirmative action plans.
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Career Path
A career path is the sequence pattern of jobs that forms one’s career.
Suggestions for more effective organizational career development
Organizational career development can be effective by;
1. Management support
2. Feedback
1. Management support:
The HR department’s efforts to encourage career development have little impact unless
they are supported by managers. Commitment by top management is crucial. Without it
middle-level managers may show much less support of their subordinate’s careers.
2. Feedback:
Providing feedback about their career development to employees is important, especially;
To assure bypassed employees that they are still valued and will be considered for
future promotions if they are qualified
To explain why they are not selected
>Linotype operator
>Teletype operator
>Word processor operator
> Clerk-Typist
Job ladder Care
er p
ath
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To indicate what specific career development actions they should undertake.
Suggestions for improving an individual’s career development
If we identify a career as the property of the individual, then clearly the responsibility for
managing this rests on the individual, who should identify career goals, adopt strategies to
support them and devise plans to achieve the goal.
The list below describes the type of strategies, identified from a review of the literature by
Gould and Penley (1984), and they relate to career improvement/promotion within the
organization.
• Creating opportunities.
This involves building the appropriate skills and experiences that are needed for a career
in the organization. Developing those skills that are seen as critical to the individual’s supervisor
and department are most useful, as is exercising leadership in an area where none exists at
present.
• Extended work involvement.
This necessitates working long hours, both at the workplace and at home, and may also
involve a preoccupation with work issues at all times.
• Self-nomination/self-presentation.
Individuals who pursue this strategy will communicate the desire for increased
responsibility to their managers. They will also make known their successes, and build an image
of themselves as someone who achieves things.
• Seeking career guidance.
This involves seeking out a more experienced person, either within the organization or
without, and looking for guidance or sponsorship. The use of mentor relationships would come
into this category.
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• Networking.
Networking involves developing contacts both inside and outside the organization to
gain information and support.
• Interpersonal attraction.
This strategy builds the relationship with one’s immediate manager on the basis that he
or she will have an impact on career progression. One form of this is ‘opinion conformity’; that
is, sharing the key opinions of the individual’s manager, perhaps with minor deviations. Another
is expressed as ‘other enhancement’, which may involve sharing personal information with
one’s manager and becoming interested in similar pursuits.
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Part IV
Rewarding and motivating HR
Q4.1 Performance appraisal
Meaning and importance
Performance appraisal process
Performance appraisal methods
Obstacles and distribution
Creating more effective performance
Reward and compensation
Reward and compensation
Job evaluation
Compensation administration
Executive compensation
benefits
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4.1 Performance Appraisal
Meaning and purpose:
Meaning:
Performance appraisal is by which organizations evaluate individual job performance.
When it is done correctly, employee, their supervisors, the HR department and ultimately the
organization benefits.
Purpose:
Why do a performance appraisal? Performance appraisal primarily meant for “to tell
employees now they had done over a period of time and to let them know what pay raise they
would receive”. Then other uses for performance appraisal are;
Performance improvement
Compensation adjustments
Placement decisions
Training and development needs
Feedback to human resources
The performance appraisal process
1. Establish performance standards with employees
2. Mutually set measurable goals
3. Measure actual performance
4. Compare actual performance with standards
5. Discus the appraisal with the employee
6. If necessary, initiate corrective action
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1. Establish performance standards with employee
The appraisal process begins with establishment of performance standards in
accordance with the organization’s strategic goals. These performance standards should be
clear and objective enough to be understood and measured.
2. Mutually set measurable goals
Once performance standard are established, it is necessary to communicate these
expectations to employees and then come up with measurable goals after consultation with
employees.
3. Measure actual performance
The third step is performance measurement. In it we determine what actual
performance is, we need information about it. We should be concerned with how we measure
and what we measure.
4. Compare actual performance with standards
The fourth step in the appraisal process is the comparison of actual performance with
standards. This step notes deviations between standard performance and actual performance,
so that we can proceed to the fifth step.
5. Discuss the appraisal with the employee
It is important step and effects employee motivation. It is easy to tell employee good
news as compare to bad news. That is why appraisal must be done carefully.
6. If Necessary, Initiate corrective actions
The final step in the appraisal is the identification of corrective action where necessary.
Performance appraisal methods
There are three approaches for performance appraisal
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1. Evaluating absolute standards
The first approach is absolute standards i-e measuring an employee’s performance against
established standards. Following are appraisal methods which use evaluating absolute
standards approach.
I. Critical incident appraisal
II. The checklist
III. The adjective rating scale
IV. Force choice
V. Behaviorally anchored rating scales
I. Critical incident appraisal
A performance evolution that focuses on key behaviors that differentiate between
doing a job effectively or ineffectively.
II. Checklist appraisal
A performance evolution in which a rater checks off applicable employee attributes.
III. Adjective rating scale
A performance appraisal method that lists traits and a range of performance for each.
Example;
Traits Performance
Quality of work unsatisfactory satisfactory superior
IV. Forced choice appraisal
A performance evolution in which the rater must choose between two specific
statements about an employee’s work behavior.
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V. Behaviorally anchored rating scale
A performance appraisal technique that generates critical incidents and develops
behavioral dimensions of performance. The evaluator appraises behaviors rather that traits.
2. Relative standards
It’s a second approach and it says “evaluation an employee’s performance by comparing
the employee with other employees.
Following three methods comes under this approach.
I. Group order ranking
II. Individual ranking
III. Paired comparison
I. Group order ranking
Group order ranking requires the evaluator to place employees into particular
classification such as “top 20 percent”.
II. Individual ranking
Ranking employees performance from highest to lowest.
III. Paired comparison
Ranking individual’s performance by counting the times any one individual is preferred
member when compared with all other employees.
3. Outcomes
The third approach to appraisal makes use of achieved performance outcomes.
Employees are evaluated on how well they accomplished a specific set of objectives
determined as critical in the successful completion of their job. This approach is frequently
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Distortion
Inappropriate substitute
Leniency error
Inflationary pressure
Halo error
Central tendency
Similarity error
referred to as goal setting, in many cases more commonly referred to as management by
objective (MBO).
Management By Objective (MBO)
A performance appraisal method that induces mutual objective setting and evaluation
based on the attainment of the specific objectives.
Obstacles and distortions
Following factors distort appraisal.
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1. Leniency Error
Performance appraisal distortion caused by evaluating employees against one’s own
value system. The leniency bias results when raters tend to be easy in evaluating the
performance of employees. Such raters see all employee performance as good and rate it
favorably.
2. Halo error
The halo error occurs when the rater’s personal opinion of the employee influences the
measurement of performance. For example, if a supervisor likes an employee, that opinion may
distort estimates of the employee’s performance. This problem is most sever when raters must
evaluate personality traits (instead of behaviors), their friends, or people they strongly dislike.
3. Similarity error
Evaluating employee based on the way an evaluator perceives himself or herself. When
evaluators rate other people in the same way that the evaluators perceive themselves, they
make a similarity error. For example, the evaluator who perceives himself or herself as
aggressive may evaluate others by looking for aggressiveness.
4. Central tendency
The tendency of a rater to give average ratings. It is possible that regardless of who the
appraiser evaluates and what traits are used, the pattern of evaluation remains the same.
Sometimes the evaluator’s ability to appraise objectively and accurately has been impeded by a
failure to use the extreme scale. When this happens, we call the action central tendency.
5. Inflationary pressure
Inflationary pressure affects the no of employees to be promoted. Inflationary pressures
have always existed but appear to have increased as a problem over the past three decades. As
equality values have grown in importance in our society, as well as fear of retribution from
disgruntled employees who fail to achieve excellent appraisals, evaluation has tended to be less
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rigorous and negative repercussions from the evaluation to be reduced by generally inflating or
upgrading appraisals.
6. Inappropriate substitute
Inappropriate substitute for performance means using alternative standard of
performance due to uncontrollable environmental conditions.
Creating more effective performance management system
Performance appraisal system can be effective by using following suggestions.
1. Use behavior based measures
From evidence it is clear that behavior based measures are better than that are build
around traits.
Examples:
One example of trait is loyalty. What is loyalty? How you can measure loyalty? So traits
suffered from weak agreement between raters.
One example of behavior, frequently says ”Good morning to customers”.
SUCCESS = Train appraiser + Rate selectively + Have multiple raters + Provide ongoing feedback + Combine absolute and relative standards + Use behavior-based measures
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2. Combine absolute and relative standards
Use together absolute and relative standard to measure performance of individuals
instead of using a single standard.
3. Provide ongoing feedback
Proved feedback to employees continuously instead of once at the end of year, its
better to conduct monthly, quartly and semiannual appraisal.
4. Use multiple rater.
There should be more than one person who are rating an employee’s performance. Peer
evaluation, upward evaluation and 360-degree appraisals can be used for this purpose.
5. Rate selectively
Appraisers should rate only in those areas in which they have significant fob knowledge
and not in areas where they are weak.
6. Train appraisers
Use train and qualified appraisers for performance appraisal, otherwise it will be
messed up.
4.2 Reward and Compensation
Compensation and rewards is what employee receives in exchange for their
contribution to the organization. The most obvious rewards/compensation employee receive
from work is pay. However compensation also include promotions, desirable work assignments
and or host of other less obvious pay offs- a smile, peer acceptance, work freedom, or a kind
word of recognition.
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Job evaluation and pay structure
Job evaluation
Job evaluation is the process whereby an organization systematically establishes its
compensation program, in this p process, jobs are compared in order to determine each hob’s
appropriate worth within the organization.
Job evaluation methods
Three basic methods of job evaluation are;
1. Ordering method
The ordering method requires a committee composed of both management and
employee to arrange jobs in a simple rank order, from highest to lowest. No attempt is made to
break down the jobs by specific weighted criteria. The committee members merely compare
two jobs and judge which one is more important or more difficult to perform. Then they
compare another job with the first two and so on until all the jobs have be evaluated and
ranked.
2. Classification method
“evaluating jobs based on predetermined grades”
Job grades are classification of jobs like shop jobs, clerical jobs, and sales jobs etc. once
classification are established, they are ranked in an overall order of importance according to the
criteria chosen, and each job is placed in its appropriate classification.
3. Point method
The last method we will present brakes down jobs based on various identifiable criteria
(such as skill, efforts, and responsibility) and allocates points to each of these criteria.
Example;
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Job class: clerk
Factor 1st degree 2nd degree 3rd degree
Skill
1. education 22 44 66
2. problem solving 14 28 72
Responsibility
1. safety of others 5 10 15
2. word of others 7 14 21
Pay structure
Once the job evaluation is complete the data generated becomes the nucleus of the
organization pay structure. This means establishing pay rates or ranges compatible with the
ranks, classifications, or points arrived at through job evolution. Any of three job evolution
methods discussed earlier provide the necessary input for developing the organization’s overall
pay structure. Three important concepts related to par are;
1. Compensation surveys
Used to gather factual data on pay practices among firms and companies within specific
communities.
101
2. Wage curve
After the compensation committee arrives at points totals from job evaluation and
obtains survey data on what comparable organizations are paying for similar jobs, a wage curve
can be fitted to the data
(Points obtain from job evaluation)
Mon
thly
sal
ary
in R
s.
(Obt
ain
from
sur
vey)
Wage Curve
80000
70000
60000
50000
40000
30000
20000
10000
100 200 300 400 500
. .
. .
.
102
The wage structure
It is only short step from plotting a wage curve to developing the organization’s wage
structure job similar in terms of classes, grades or pints are grouped together.
For example in above wage curve, pay grade may cover the range from 0 to 100 points, wage
grade 2 from 100 to 200. This is shown below.
(Points)
Mon
thly
sal
ary
in R
s.
80000
70000
60000
50000
40000
30000
20000
10000
100 200 300 400 500
Grade 1
Grade 2
Grade 3
Grade 4
103
Compensation administration
Lets see compensation administration phase;
Let’s explain above diagram.
Job analysis
The process of describing job, duties, authority relationships, skills required, conditions
of work, and additional relevant information.
Job evaluation
[Described earlier in detail]
Job Analysis
Position descriptions
Job descriptions Job standards
Pricing jobs
Job evaluation worth
match Labor marked rate
Job ranking
Job grading
Factor pricing
Point system
Job evaluation
Employers association
Professional association
Self conducted surveys
State unemployment
office
Wage & salary surveys
Phase I
Identity & study jobs
Phase II
Internal equity
Phase III
External equity
Phase IV
Matching internal and external worth
Rate of each job
104
Wage and salary surveys
[Discussed earlier as compensation survey]
Pricing jobs
It means determining the rate of each hob, considering job evaluation and salary surveys.
Executive compensation programs
“Executive pay” is a special topic of “Compensation”, but it does require much attention
because it does have several twists. Let’s see them one by one.
First
The basic salaries of executives are almost 300 times higher than those of low-level
managers.
Second
Executive bonus and stock option plan can dramatically increase total compensation.
Finally
Executives receive perquisites (called perks) or special benefits that other don’t.
It is well known that executives in the private sector receive considerably higher compensation
than do their counter parts in the public sector.
In short executives “Looting companies”
Employee benefits
Definition
Membership-based, non financial rewards offered to attract and keep employees.
Types of benefits
105
1. Legally required benefits
Most employers are required by law to offer these benefits. Example;
Social security
Worker’s compensation
Family and medical leave
Unemployment compensation
2. Voluntary benefits
These benefits are up to organization, whether it pays or not. For example;
Health insurance and its different types
3. Retirement benefits
What an employee will get at the time of retirement. For example;
Commute
Monthly pension
4. Paid time-off
It means you are being paid, even though you are on leave. For example;
Vacation and holiday leave
Disability insurance
5. Survivor benefits
Example;
Group term life insurance
Travel insurance
106
Part 05
Labor management relations and collective bargaining
Union
Q5.1 unionization
Union
Collective bargaining
o Objectives and scope
o Players
o Legal framework
o Power bases
Impasses and resolution
Strikes and lockouts
Q5.2 Discipline and grievance handling
Discipline
Meaning
Causes of disciplinary action
Disciplinary guidelines
Disciplinary process
Q5.3 Grievance
Meaning
procedure
107
5.1 Labor management relations and collective bargaining
Union
Introduction
Organization of workers, acting collectively, seeking to protect and promote their
mutual interests through collective bargaining.
Why employees join unions?
The employees join unions because of following reasons
Higher wages and benefits
Greater job security
Influence over worker rules
Compulsory membership
Upsets with management
Unionizing employees
Unorganized
Authorization card: A card signed by prospective union members indicating in having a union election held at their work site.
Petition to authority for election
Vote taken: Did union receive a majority vote?
Certification bargaining unit
108
Collective bargaining
Definition
The negotiation, administration, and interpretation of written agreement between two
parties, at least of which represents a group that is acting collectively, that covers a specific
period of time.
Objective
The objective of collective bargaining is to agree on a contract acceptable to
management, union representatives, and the union membership.
Scope of collective bargaining
Collective bargaining generally negotiates on;
Wages
Work hours
Terms and conditions of employment
Special issues
Legal framework and process
Legal framework and process
Yes
Yes
Preparation for negotiations
Contract negotiations
Agreement
Union ratification
Contract administration
No
No
Prep
are
for n
ext n
egot
iatio
n
109
Q5.2 Discipline & Governance handling
Discipline
Meaning
Discipline is management action that encourages compliance with organizational
standards.
Types of Discipline
There are two types of discipline
1. Preventive
2. Corrective
1. Preventive Discipline
Preventive discipline is action taken to encourage employees fo follow standards and
rules so that violations are prevented.
2. Corrective Discipline
Corrective discipline is an action that follows a rule infraction it seeks to discourage
further infractions and ensure future compliance with standards.
Causes of Disciplinary Action
Disciplinary Action
Disciplinary action is a penalty, such as warning or suspension without pay. These
actions are initiated by an employee’s immediate supervisor but may require approval by a
higher-level manager r HR department, especially when the worker is union member
Causes of Disciplinary action
1. Violation of rules and regulations
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2. Non compliance of laid down procedures and policies
3. Not following of HR standards or guidelines
Disciplinary Process
1. Use behavior based measures
From evidence it is clear that behavior based measures are better than that are build
around traits.
Examples:
One example of trait is loyalty. What is loyalty? How you can measure loyalty? So traits
suffered from weak agreement between raters.
One example of behavior, frequently says ”Good morning to customers”.
2. Combine absolute and relative standards
Use together absolute and relative standard to measure performance of individuals
instead of using a single standard.
Verbal reprimand by supervision
Written reprimand, with a record I personnel file
One-to three-day suspension from work
Suspension for one week or longer
Discharge for cause
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3. Provide ongoing feedback
Proved feedback to employees continuously instead of once at the end of year, its
better to conduct monthly, quietly and semiannual appraisal.
4. Use multiple rater.
There should be more than one person who are rating an employee’s performance. Peer
evaluation, upward evaluation and 360-degree appraisals can be used for this purpose.
5. Rate selectively
Appraisers should rate only in those areas in which they have significant fob knowledge
and not in areas where they are weak.
6. Train appraisers
Use train and qualified appraisers for performance appraisal, otherwise it will be
messed up.
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