Assignment on Human Resource Management

Topics: Performance management and appraisal system in your

organization.

Prepared for
Ms. Laboni Ferdous

Prepared by

Tawhidul Alam
Program: Master of Business Administration (MBA)
Subject: Human Resource Management
World University of Bangladesh
Batch: 06.
ID/Roll: 121.
e-mail: tawhid789@yahoo.com

December 18, 2009

 Table of content
1.0 Introduction............................................................................................................................1
1.1 What is Human Resource Management (HRM)?.......................................1

1.2 Importance of “Human Resource Management”........................................1

1.3 ‘Tex Heart Ltd.’ in context with HRM.......................................................2

2.0 Jobs descriptions and jobs specification................................................................................2

3.0 Components of HRM.............................................................................................................3
4.0 Employees performance management and appraisal.............................................................5
4.1 Performance management...........................................................................5

4.2 Performance appraisal.................................................................................5

4.2.1 Methods of performance appraisal..............................................................................6

5.0 Performance management in Tex Heart Ltd..........................................................................7
6.0 Career development in Tex Heart Ltd...................................................................................8
7.0 Current issues of HRM in Tex Heart Ltd...............................................................................9
8.0 Conclusion.............................................................................................................................9
1.0 Introduction

1.1 What is Human Resource Management (HRM)?

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to
people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.

1.2 Importance of “Human Resource Management”

HRM is important even in this age of automation & globalization. This is natural as updated
technology provides information & data, but managers take the decisions. Quality
consciousnesses, cutthroat competition, impact of technology are some factors responsible for
growing importance of HRM.

In the present business world, manpower is a valuable asset of every business organization. Its
stability, growth, & prosperity depend on efficient, loyal & creative people. Every
organization must attract, maintain, develop, motivate, & utilize such manpower in a
purposeful manner. This has lead to growing importance of HRM.

The importance of HRM can be studied under:

1. Significance for an enterprise in terms of efficient, cooperative, skilled &

motivated manpower for the benefit of an enterprise.
2. Professional significance in terms of improvements in the quality of work life.
3. Social significance in terms of elimination of waste of human resources &
provision of suitable employment.
4. National significance in terms of exploitation of natural & financial resources for
economic growth, which provides better life & welfare to people.

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1.3 ‘Tex Heart Ltd.’ in context with HRM

Our group will be explaining the human resource management of the company ‘Tex Heart
Ltd.’ originated in 1994 which provides the best readymade garments product.

Tex Heart Ltd. has a very well defined and structured department and it’s various policies of
keeping each employee productive part of the organization are intoned with the corporate
worlds requirement.

Employees in the company are largely committed to their organization and have shown
progress in the company. Employees are satisfied with the HR department of Tex Heart Ltd.

2.0 Jobs descriptions and jobs specification

Job description, a written statement of what a jobholder does, how it is done and why it is
done.
Job specification, a statement of the minimum acceptable qualifications that a job incumbent
must possess to perform a given job successfully.

Tex Heart Ltd. jobs ads in the newspaper for example,

Career with
Tex
Heart Ltd.
Tex Heart Ltd., one of the fastest growing readymade garments manufacturing company,
wishes to recruit professionals who have a result oriented and proactive mind set for the
position listed below.
Sl. Name of the post Number of Job specification
No. vacancy
1 Assistant Manager, 2 Reporting to the Manager, Operations; the
Operations aspirant will plan & supervise the
operation of the factory & carry out
manpower planning of the operation
department. The aspirant should have a
Master’s degree in any subject. Minimum
3 years experience in related field.

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Application in plain letter with complete resume and 2 passport size photographs should
reach the corporate office, Tex Heart Ltd., 133, Senpara, Mirpur, Dhaka – 1216 on or
before January 15, 2010. Please mention the post applied for on the top of the envelope.
Only short listed candidates will be called for the interviews.

3.0 Components of HRM

Human Career
resource Performanc
developm
planning e appraisal
ent

Performanc
e
Recruitmen HRM managemen
t
t

Training/
Orientatio Developm
Selection
n ent

1. Human resource planning: Human resource planning is essential to meet the staffing
needs that result when complex and changing organizations encounter a dynamic business
environment. The planning process involves forecasting HR needs and developing programs
to ensure that the right numbers and types of individuals are available at the right time and
place.

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2. Recruitment: Recruiting is the process by which organizations locate and attract
individuals to fill job vacancies. Most organizations have a continuing need to recruit new
employees to replace those who leave or promoted.

3. Selection: In this stage organization, select the candidates through CV of the candidates.
The process of assessing candidates and appointing a post holder to ensure that the most
appropriate candidates are hired.

4. Orientation: Introduction of a new employee to his/her job and the organization.

Orientation is designed to provide new employees with the information needed to function
comfortably and effectively in the organization.

5. Training/Development: Employee training and development may be implemented by

formal or informal procedures. Formal training is often associated with the introduction to a
new job; it is also a means of keeping up with technological or procedural changes. Informal
training occurs on the job and is administrated by superiors and peers. The HR department
may provide train-the-trainer courses and coordinate on-the-job-training opportunities with
employee career plans and the organization’s forecast of HR needs.

6. Performance management: Performance management is a process used within

organization to establish and evaluate an individual’s job performance to achieve goals and
objectives.

7. Performance appraisal: Performance appraisal is the part of the performance management

process in which an employee’s contribution to the organization during a specified period of
time is assessed. Performance feedback lets employees know how well they have performed in
comparison with the standards of the organization.

8. Career development: Career development is an organized approach used to match

employee goals with the business needs of the agency in support of workforce development
initiatives. The purpose of career development is to:

• Enhance each employee's current job performance.

• Enable individuals to take advantage of future job opportunities.

• Fulfill agencies' goals for a dynamic and effective workforce.

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4.0 Employees performance management and appraisal

4.1 Performance management

Performance management is the integration of performance appraisal systems with broader

human resource systems as a means of aligning employee’s work behavior s with the
organization’s goals. Performance management should be an ongoing, interactive process that
is designed to enhance employee capability and facilitate productivity.

There is no one-way to manage performance. Whatever system is adopted needs to be

congruent with the culture and principles that pervade the organization. However, most system
of performance management has several parts, i.e.,
i. Defining performance
ii. Appraisal process
iii. Measuring performance
iv. Feedback & coaching
The purpose of performance management is to take sure that employee goals, behaviors used
to achieve those goals and feedback of information about performance are all linked to the
corporate strategy.

4.2 Performance appraisal

Performance appraisal is the part of the performance management process in which an

employee’s contribution to the organization during a specified period of time is assessed.
Performance feedback lets employees know how well they have performed in comparison
with the standards of the organization. Delivering and receiving performance feedback can be
an emotionally laden process that dramatically affects employees’ attitudes toward the
organization and themselves.

Assessment and feedback can occur informally, as when a supervisor notices and comments
on a good or poor performance incident. A more formal method is the structured annual
performance review, in which a supervisor assess each employee’s performance using some
official assessment procedure. Larger organizations tend to use both formal and informal
methods, whereas many smaller organizations use only informal supervisory feedback.

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4.2.1 Methods of performance appraisal

Performance can be measured in many different ways. Most of the performance measures
currently in use can be characterized as either objective or subjective. Objective measures are
typically results-based measures of physical output, whereas subjective measures can be used
to assess traits, behaviors or results.

Objective Measure:

Objective measures assess performance in terms of numbers, such as the amount of a product
an employee produces or sells, the number of defective product produced, the number of times
an employee is absent or late to work. While some job measures are more objective than
others, nothing is truly objective. For an example, the number of defective products produced
may be the result of a machine defect or the quality of raw materials received from the
supplier.
There are five major types of objective measures, i.e.,
i. Production Measures
ii. Dollar Sales
iii. Personnel Data
iv. Performance Tests
v. Business Unit Performance Measures

Subjective Measures:

Most performance assessment systems place heavy emphasis on subjective rating of

performance. Any one who has the opportunity to observe an employee’s performance,
including superiors, peers, subordinate, clients and the employees themselves, can make
subjective ratings. For the vast majority of organizations, however, it is the immediate
supervisor who judges performance.
Unlike objective measures, subjective judgments can be used even when the employee does
not produce a measurable physical product. Subjective ratings can be used to measure the
behavior or personal traits of employees as well as results. The major problem with subjective
measures of performance is that the raters have to observe and evaluate job related behavior.
Raters may not have the chance to observe relevant behavior and even if they do, their ratings
may be biased.

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Several different types of subjective measures can be used. Generally, they can be classified as
either Comparative Procedures (ranking) or Assessments Against Absolute Standards
(rating).
Management by Objectives:

A previously popular individualized method of evaluating the performance of managers and

professionals was Management by Objectives (MBO). The MBO process involves three
stapes,

i. The employee meets with his or her superior and agrees on a set of
goals to achieve during a specified period of time. Goals should be quantifiable
and should include an agreed upon target.

ii. Throughout this period, progress toward the goals is monitored, though
the employee is generally left free to determine how to go about meeting them.

iii. At the end of the period, the employee and superior again meet to
evaluate whether the goals were achieved and to decide together on a new set
of goals.

MBO can lead to performance improvement, particularly if goals are specific, moderately
difficult and accepted by the employees and if the procedure has top management
commitment.

5.0 Performance management in Tex Heart Ltd.

At Tex Heart Ltd., our belief is that "our people are our greatest asset”. We take great pride in
acknowledging the contribution each one of us makes.

We focus on people development and for that we ensure:

• Staffs of Tex Heart Ltd. with world class professionals and ensure that the right
systems are in place to encourage them to develop to their full potential.
• Create a collaborative and mutually supportive work environment that encourages
people to grow.

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 • Build a team of professionals who deliver expertise by participating in business
decisions.
• Develop performance management and reward systems underlying our business
strategy.

Our company provides a formal review program to evaluate work performance and to promote
communication and discussion of job performance.

Tex Heart Ltd. assesses the employee on:

• Leadership
• Communication skills
• Teamwork and co-operation
• Problem solving & decision-making
• Initiative and drive
• Flexibility
• Customer focus

In Tex Heart Ltd., employees’ performance appraisal is done on an annual basis (from January
1st to December 31st). To give a chance to subordinates to evaluate their seniors a 360-degree
evaluation is conducted at the time of the performance evaluation.
The immediate supervisor prepares an annual report in December of each year of each
employee. Increments are also given at the end of the year (increments are percentage of
salaries).
Promotions are given on good performance after completing two years in the current grade.
Bonuses are given but the employee must have to complete 6 months in the company service.

6.0 Career development in Tex Heart Ltd.

Tex Heart Ltd. supports the development of its employee’s skills and abilities with an aim to
achieve their potential.

Process for career development in Tex Heart Ltd.,

Step: 1 Submission of application to HR department.

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Step: 2 Candidates are evaluated and assessed through test.

Step: 3 Performance appraisal system provides basis for decisions regarding

confirmation, promotion and annual increment of Tex Heart Ltd..

Step: 4 Results of performance appraisal is increments, salary adjustments and

promotions showing the last three years inclination of company after obtaining
approval from the president

7.0 Current issues of HRM in Tex Heart Ltd.

Following are some issues of HRM in Tex Heart Ltd.,

• The timing although is 9 am to 5 pm, but it is adhered to as the normal employee

leaves his office not before 6 pm.
• The hierarchy chart shows 3 HR managers/coordinators for Gazipur, here as only 1
fore Narayangonj. This can be unjustified keeping in view that a large number of
employee work in Gazipur.
• Tex Heart Ltd. has a formal environment which can be changed to more relax and
friendly environment.

8.0 Conclusion

The human resources department is critical for employee well being in any business, no matter
how small. This has meant a shift in the focus of HR departments from routine activities to
playing a more proactive role of constantly motivating and retaining employees.

Tex Heart Ltd. always takes proactive steps to ensure employees satisfaction and also
recognized the key role played by the employees in winning the battle of the marketplace. A

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motivated and innovative employee can work wonders for a company. To be meaningful, an
appraisal system must be,
• Reliable — provide consistent results across time
• Valid — actually measure people on relevant job content

In this point of view Text Heart Ltd. is honest to their employees, company always appraise
their employees correctly & reliably. Moreover, company always keep in mind that
measurement errors can threaten the reliability or validity of performance appraisals.

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