HUMAN RESOURCES MANAGEMENT – EXAM REVISION

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 Job Analysis

Definition
How can it make competitive advantage
Usefulness of JA to achieve org objectives
Products of Job Analysis
Job Analysis and Work Design Usefulness an importance of JA information
Strengths and weaknesses of each JA information
Why orgs moving towards competency approach
A definition of job analysis

According to James M. Higgins (1994) Job Analysis is the process in which existing and
potential jobs are analyzed or reanalyzed, designed or redesigned, to ensure that they help
fulfill the company’s mission.

Job Design is a process of improving the jobs by taking into consideration the
technological and human factors in order to enhance organizational efficiency and
employee job satisfaction. In designing a job, the designer may combine several takss
and responsibilities of different job together, exclude certain responsibility or automate
certain tasks. The JA information is useful in determining the lines of authority and
responsibility and also determining the necessary relationship among work groups.

Job Analysis Process

1. The Job Analysis process begins with firstly determining the use of the job
analysis information. The analyst, in conjunction with management, must decide
on the purpose and desired uses of the job analysis data. Job analysis data may be
used for HRP and recruitment, developing sound employee selection and
placement procedures. It could also serve as the basis for training and
development.

2. The next step in the JA process is to review background information. This may
be gleaned from organization charts which show how the job in question relates to
other jobs and where it fits in the overall organization. Information could also be
had from process charts and existing job descriptions.

3. Thirdly, the position to be analyzed is selected. When there are many similar
jobs, it is better to select a representative position to be analyzed in order to save
time. For e.g. jobs that are difficult to lean and performance or for which the
organization is constantly having to hire new employees are essential to analyse.

4. The fourth step involves the collection of the job analysis data. Information may
be collected on the actual work activities performed, human behaviors, on
machines, tools, equipment, performance standards, physical working
conditions, work schedule and human requirements of the job. Ther area
wide variety of procedures, ranging from qualitative to quantitative that can be
used tin analyzing jobs.

5. Fifthly, the information from the job analysis needs to be reviewed with the
worker performing the job and with his/her immediate supervisor. This will help
to confirm that the information is factually correct and complete. It also helps to
gain the employee’s acceptance of the job analysis data and conclusions by giving

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 that person a chance to review and modify the description of his or her job
activities.

6. Lastly, a job description and job specification are developed. These are concrete
products of the job analysis. The job description is a written statement that
describes the tasks, duties and responsibilities of the job. The job specification
summarizes the knowledge, skills and abilities for getting the job done. In
developing the job description, the duties should be clear and direct, the wording
should be specific and the scope and nature of the work should be clearly
indicated.

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Uses of the Job Analysis
Almost every HR activity requires some type of information from the job analysis
exercise. As such JA is known as the building block of all personnel functions.

Recruitment and Selection:

According to Higgins, recruitment is a series of activities intended to attract a qualified

pool of job applicants. Before an organization can find capable employees, recruiters
need to know the job specification for the positions they are to fill. A job specification is
a statement of the KSAs requirements of the person performing the job. In addition, job
descriptions are used to select and orient employees. The job description is a statement
of the TDRs of a job. Both the job analysis and job descriptions are products of job
analysis.

Training and Development:

The job analysis is an essential element to the development of training programs; it serves
as the basis for the training needs assessment (the first step in the development training
programs.

The training needs assessment is a matter of comparing the job holder’s job performance
with the actual requirements of that job (as specified in the job description). If there is no
discrepancy in this comparison, then we have no need for training. On the other hand, if
we identify a gap between the "actual" and the "ideal", then we have potentially identified
a need for training.

Performance Appraisal

This is a process by which an organization carries out a critical assessment of the

performance of its employees for the purpose of rewarding effective behaviour,
improving those which need improving or disciplining where required. Through job
analysis, the HR department can identify the behaviours and results which distinguish
effective performance from ineffective performance. The job description can be used as
a yardstick to ascertain if the performance is in synch with what is detailed in the job
description.

HRP

Fisher et al (1996) defined HRP as the process by which organizations anticipate future
staffing needs and plans programmes to ensure that the correct number and type of
employees are available when needed. Job analysis is useful as it helps to provide
information about the level of skills requirement in the different jobs to ensure that

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enough employees are in house to fill the HR needs of the Strategic Plan. The
organization can also use the job analysis information for projecting work force needs.
By observing how jobs change over time, an organization will be in a better position to
predict how jobs are likely to change in the future.

Job Evaluation (Compensation)

This is a process of finding out the relative worth of a job to the organization so that
internally equitable pay structures can be set up. The worth is based on what the job
demands of an employee in terms of skills, effort and responsibility and conditions and
hazards under which the work is performed. All of these factors are assessed through
job analysis.

Methodology of Job Analysis

A variety of methods are used to collect information about jobs. The most common
methods are:

Observation:

Here, the job analyst observes the worker doing the job in order to obtain first-
hand knowledge and information about the job being analyzed. The Observation
method of Job Analysis is suited for jobs in which the work behaviors are

1) observable involving some degree of movement on the part of the incumbent,

or
2) job tasks are short in duration allowing for many observations to be made in a
short period of time or a significant part of the job can be observed in a short
period of time, or 3) jobs in which the job analyst can learn information about the
job through observation.

Jobs in which the Observation method is successful include machine Operator,

Construction Worker or skilled craft workers.

Advantages

This method allows for a deep understanding of job duties. With other
methods of Job Analysis, sources of error (omissions or exaggerations) are
introduced either by the incumbent being interviewed or by items on the
questionnaire. With direct observation of the incumbent, these sources of error are
eliminated.

Direct Observation also allows the job analyst to see (and in some cases
experience) the work environment, tools and equipment used, interrelationships
with other workers, and complexity of the job.

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 Disadvantages

One problem with the direct Observation method of Job Analysis is that the
presence of an observer may affect the incumbent causing the incumbent to alter
their normal work behavior. It is important for the analyst to be
unobtrusive/discreet in their observations. Incumbents may alter their work
behavior if they know they are being observed.

This method is not appropriate for jobs that involve significant amounts of time
spent in concentration or mental effort.

Interview:

This method consists of asking the employee/supervision questions about the job
under review.

Advantages:

The reason for this method is that jobholders are most familiar with the job and
can supplement the information obtained through observation.

Disadvantages:

The incumbent may exaggerate or omit tasks and duties.

Interviews are time consuming and training is needed. The interviewer must be
trained in proper interviewing techniques.

There is the natural problem of people not establishing and maintaining rapport
with each other during an interview

Role Of The Interviewer In Job Analysis:

Help the employee feel welcome and at ease. Break the ice by being warm and
welcoming. Offer coffee or water, offer to take their coat, ask if they had any
trouble finding your office. A few minutes of pleasant general talk will set a
positive tone for the interview.

Arrange a private place for the interview, and make arrangements so that you are
not interrupted and so the employee may speak candidly about their job.

Give the employee an overview of the interview procedure. Take a few minutes to
recap the essential functions of the job, and to explain why this analysis is
important.

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 Let the employee know that you may need a few minutes every now and then to
jot down their comments or your thoughts -- explain that your notes will be
helpful later as you prepare the description of the job.

QUESTIONNAIRE:

The job holder is given a questionnaire aimed at eliciting relevant job

information. This method is economical and the data collected can be quantified.
However, designing the questionnaire is not an easy task.

The Position Analysis Questionnaire (PAQ) developed by McCormick, Jeanneret,

and Mecham (1972) is a structured job analysis instrument to measure job
characteristics and relate them to human characteristics.

DIARIES

Jobholders themselves may be asked to keep a diary of their work activities

during an entire work cycle. This record an provide the job analyst with a very
complete picture of the job and may be supplemented with interviews.

Traditional Approach vs Modern Approach (the

competency approach)
Traditionally, job analysis has been defined as the process of obtaining information about
the job. It is seen as being highly structured and assumes a static job environment.
Research and practice in traditional job anlaysis have focused on developing better
methods of measuring the content of jobs. Another major criticism of traditional job
anlaysis I sthat it focuses too much on the concrete duties and tasks that a job requires.

Critics of traditional job analysis procedure argue that the job anlaysis methods
developed in the past are inadequate for use in the firms of the 21st Centry. The primary
reasons for this inadequacy is the fact that jobs in orgnanizations have become highly
dynamic in response to a rapidly changing business environment. Since jobs are
changing the traditional approaches to job analysis may need to change as well. Grater
emphasis may need to be placed on identifying how jobs are likely to change in the
future. Jobs in the 21st Century are more likely to involve “flows” of knowledge, skills
and abilities. As such, some proponents argue that job analysis procedures should focus
on broad and generic rather than narrow and specific measures of job content.

Competency approach represents a broader more generic approach to measuring job

characteristics. Competencies represent a broad range of characteristics such as task
competencies, knowledge, results competencies. They differentiate effective from
ineffective performances or are in some way critical to particular competitive strategy in
which an organization may change.

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Competency analysis procedures may include:

Work Analysis: The job analyst focuses on high performance, watching them work and
recording their results and what they do to achieve them.

Work planning process: job experts identify work processes that will be needed as a
result of changes in strategy or the environment and identify competencies needed by
work processes.

The “new view” of job analysis that is really needed is one that combines the emphasis
of the “Strategic View” of job analysis with the methodologic rigor that has long
characterized traditional methods.

Core competency models are the easiest to administer since there is only one model for
all associates to understand. They also can effectively serve to align human resource
systems with the change process. Core competency models also support culture change
by communicating what behaviors are required for change and can serve as criteria for
measuring the progress of behavior change in the existing workforce.

A competency approach provides greater clarity for the selector and candidate about what
is required. For example, a person specification that states that 'flexibility' is required may
mean different things to different people, whereas the use of a competency such as
'willingness to perform tasks outside the normal range of duties' provides greater clarity
about what is required.

JA: ADDING VALUE TO THE ORGANIZATION

The JA effort must add value to the organization. Job analysis methods that can serve
servral purposes can be used to manage many different jobs, are standardized such that
comparisons across jobs are made easy, have more value adding potential that JA systems
of a more restricted nature. Also JA methodsthat require little training of those who use
them, and those that can be completed easy alsohave a greater potential for adding value
due to their lower cost in time and effort.

Competency-Based Job Analysis

• Competencies
• Demonstrable characteristics of a person that enable performance of a job.
• Competency-based job analysis
• Describing a job in terms of the measurable, observable, behavioral competencies
(knowledge, skills, and/or behaviors) an employee must exhibit to do a job well.

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Why Use Competency Analysis?

• To support HPWS
• Traditional job descriptions (with their lists of specific duties) may actually backfire if a
high-performance work system is the goal.

• Maintain a strategic focus

• Describing the job in terms of the skills, knowledge, and competencies the worker
needs is more strategic.
• Measuring performance
• Measurable skills, knowledge, and competencies are the heart of any company's
performance management process.

Its role as a strategic lever

The way a company competes can impact profoundly on the way tasks are organized and
the way the tasks are designed could provide the company with a competitive advantage.

The ultimate value of any job analysis program lies in its ability to help employees
perform their strategic roles in the organization more effectively and efficiently. Thus it
is critical for an organization to have a clear understanding of how job analysis are
expected to increase employee productivity.

What is the role of the consultant?

1. Uses experience and skills to provide you with recommendations and advise. The
implementation of the recommendations may be performed by a consultant but is
more often better performed by the company staff.
2. Gathers information for analysis.
3. Consultants must use their detachment from the organization as a source for
objectivity in their analysis.
4. Works with managers to develop solutions.

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 Techniques (negative and positive)
Process of HRP and Recruiting
Strengths and weaknesses of each
step
CSME context – how to minimize
RECRUITMENT costs

According to Higgins, recruitment is a series of activities intended to attract a qualified

pool of job applicants. Recruitment follows HRP. Without accurate planning the wrong
type and number of persons may be employment. Recruitment also goes hand in hand
with selection. Selection is the process by which candidates are evaluated.

Recruitment Process

After the vacancy has occur, the first step in the recruitment process is to CAREFULLY
EXAMINE THE JOB to determine the TDRs and SKAs of the candidate. This
information is obtained from the job analysis process..

Having established that there is a necessity for recruitment, the next stage is TO
ATTRACT THE CANDIDATES. The advertisement may be placed internally or
externally. Persons who are already working in the organization constitute the internal
sources. Whenever any vacancy arises, someone from within the organization is
upgraded, transferred, promoted or even demoted. Filling positions internally have
several advantages:

Advantages of Internal Recruitment

INRCREASES MORALE:

First, internal recruitment may lead to increased morale for employees; the
organization is perceived to reward good performance or loyalty.

Often, one promotion leads to another vacant position and this chain effect
contributes further to increased morale.

Another advantage to the firm is that Human Resource data is immediately

available for any employee recruited internally.

Further, the employee's work habits are known and previous performance
appraisals are on record.

Maximises job security for present employees.

COST REDUCTION:

Similarly, an internal recruit will be familiar with the firm. This employee will be
familiar with the firm's products, clients, organizational policies, and corporate
culture. Therefore, the firm might be able to save money insofar as orientation
sessions for such an employee may not be necessary.

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 Training and socialization costs are also reduced.

Disadvantages:
May build resentment among staff and this resentment may be demonstrated through less
than satisfactory work output

Discourages entry for talented and innovative people

Organization may be forced to select from a limited pool thereby sacrificing quality.

EXTERNAL RECRUITMENT

Advantages
The most obvious advantage of external recruitment is the availability of a greater pool of
applicants.

External recruits also bring new ideas and external contacts to the firm hiring them.

Disadvantages

Higgins has suggested a number of techniques which go beyond the traditional methods
of recruiting. These include resume databases, tele-recruiting, information seminars and
also internet recruiting.

One approach to Internet recruitment is to permit people to generate a resume while

online.

Advantages of internet recruiting include access to more people and a broader selection
of applicants; the ability to target the type of people needed; access to people with a
technical background who know computers; convenience; quicker response and
turnaround; ease of use.

Disadvantages include an increased volume of applicants may also become a problem if

Internet recruiting is used. An organization must ensure that it uses an adequate tracking
mechanism to deal with this increased volume. A further disadvantage is that not
everyone has access to or uses the Internet.

EVALUATION OF APPLICANTS

Once the job has been advertised, line managers get involved and the selection process
begins.

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 Selection is the process of gathering information about applicants for a position and then
using that information to choose the most appropriate applicant. The selection process
can lead to improved productivity, guard against law suits and achieve legal compliance
and reduce training costs.

A targeted selection process may be employed which is based on the following

principles:

Identifying critical elements for the position: The interviewer should be guided
by a list of skills, special qualities, knowledge or behavior for the position he/she is
interviewing for. This list is developed by identifying those aspects of on-the-job
performance that are most critical to getting the job done (job description).

Organize your interview into a system: Hiring decisions are based on the
evaluation of applicant information accumulated from a variety of sources.

METHODS OF SELECTION

Application Blank which is used to determine whether or not the candidates meet the
minimum requirements; interviews which should be well structured; background
investigations to probe applicant’s background and tests of mental abilities, personality
and intelligence.

The HR Manager is responsible for making the job offer after the selection process has
been completed.

• Weaknesses of the Selection Process

• Its role as a strategic lever

PLACEMENT

After selecting a candidate, he should be placed on a suitable job. Placement involves

assignment a specific rank and responsibility to an employee. Proper placement ensures
that the employee is able to show good results on the job, get along with staff and avoid
mistakes and accidents.

Weaknesses of the Recruitment Process

Logically, firms would seek to recruit in a manner that guarantees the greatest number of
qualified applicants. However, there are often constraints on the recruitment process
which prohibit some methods. Some of these constraints are:

• Organizational Policies

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 An example of an organizational policy might be a "promote-from-within" policy.
Frequently, such policies are encountered in unionized firms where the collective
agreement stipulates that job openings must be posted internally prior to seeking
applicants from outside the organization.

• Recruiter Habits

Recruiter habits may also constitute a recruitment constraint. For example, past successes
may lead to habits or preferred tendencies in recruitment

• Environmental Conditions

Organizations are generally subject to changes in their environment. This includes

changes in the labor market. The rate of unemployment in an area can have a profound
influence on recruitment. High unemployment, or a surplus of labor supply, may result in
a larger number of skilled applicants for a particular job than would be the case in times
of full employment.

Changes in legislation governing the employment of certain classes of employees can

also constrain recruitment activities. If, for example, the degree of qualification necessary
to do a particular job is changed by way of legislation, then the firm's recruitment
activities may also need to change.

• Its role as a Strategic lever

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 Avoiding pitfalls
How PM system works
Contents on training session on
PERFORMANCE MANAGEMENT SYSTEM PA system

Definitions of Performance Management

Performance appraisal may be defined as a formal, structured system of measuring and

evaluating an employee’s job related behaviours and outcomes to discover how and why
the employees is presently performing and how the employee can perform more
effectively in the future.

Purpose of performance management System

The main purpose is to make sure that the performance management system
are to link the workers’ activities with the firm’s strategic goals, to
furnish valid and useful information for making administrative
decisions, and to provide the workers with useful developmental
feedback.

Strategic Purpose
One of the ways in which strategies are implemented is by management defining the
desired results, behaviours and employee characteristics necessary for carrying out
strategy, then developing measurement and feedback mechanisms which will show
how effectively results are being achieved and what to do to produce results.

Administrative Purpose:
Performance Management information can be used to make administrative decisions such
as salary administration, promotions, terminations etc.

Developmental Purpose:
In instances where employees are not performing up to standard, performance
management also seeks to improve their performance. The feedback from the
performance evaluation process indicates or identifies the areas of strengths and
weaknesses in the employee performance.

COMMENT ELEMENTS OF Performance Management SYSTEMS

1. Define performance
It is desirable to carefully define performance so that it supports the organization’s
strategic goals. The setting of clear goals for individual employees is a critical component
of performance management.
2. Measure performance
Measuring performance does not need to be narrowly conceived but can bring together
multiple types of performance measured in various ways; the key is to measure often and
use the information to correct performance where
necessary.
3. Give feedback and coaching

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In order to improve performance, employees need information; about their performance
along with guidance as to how to reach the next level of results. Without frequent
feedback employees are unlikely to know that their behaviour is out of synchronization
with relevant organizational goals, or what to do about it.
PERFORMANCE MANAGEMENT PROCESS:

1. Defining the Job

The supervisor must ensure that there is a common understanding between
himself or herself and the employee about the duties to be carried out and the
set standards to follow;

2. Appraising Performance
This involves comparing the employee’s actual performance against set
standards and involves the use of some type of rating form.

3. Feedback Sessions
These feedback sessions refer to the situation in which the supervisor discusses
with the employee his or her performance and progress. Plans are also
made for developmental requirements to be met;

METHODS OF PERFORMANCE APPRAISAL:

Past-oriented methods of appraising job performance include:

Graphic Rating Scale Method:

This is a scale that lists a number of traits and range of performances reached. The
employee is then rated by identifying the score that best describes his level of
performance for each trait. ADV: Simple to use; low cost; DIS: rater’s biases likely to
influence evaluation

Critical Incident Method:

This involves keeping a log of desirable or undesirable examples or incidents

of an employees work-related behaviours. ADV: provides hard and specific facts
which form the basis for a review at varying intervals; ensures consistency in rating
process; provides solid examples of what employee can do to eliminate performance
deficiencies; useful for identifying specific examples of good and poor performances;
DIS: cannot be used by itself for comparing workers; not good for making salary
decisions.

BARS: Behaviorally anchored rated skills

Persons with knowledge of the job to be appraised are asked to describe specific
illustrations of effective performance behaviour.

Responses are then collated and returned to a different group to agree examples of
effectiveness/ineffectiveness in the performance.

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Those examples which are consistently rated at the same point on the scale can then
act as “anchors” and provide behavioral examples for each point on the scale.

ADV:

It is a more accurate gauge of performance, as it is done by people who know the job
and its requirements better than others.

Provides feedback to the appraisees

Future oriented methods include:

Management by Objectives

With this system the manager agrees with members of staff on set objectives which are
reviewed periodically. The appraisal is then based on the extent to which these stated
objectives have been achieved.

ADV: direct results can be observed, whereas the traits and attributes of employees
(which may or may not contribute to performance) must be guessed at or inferred;

MBO advocates claim that the performance of employees cannot be broken up into so
many constituent parts - as one might take apart an engine to study it.

DISADV: they can lead to unrealistic expectations about what can and cannot be
reasonably accomplished;

It has become very apparent that the modern organization must be flexible to survive.
Objectives, by their very nature, tend to impose a certain rigidity.

360 Degree Feedback

This technique is understood as systematic collection of performance data on an

individual/group derived from a number of stakeholders, team members, customers,
peers.

It provides a broader perspective about an employee’s performance.

It facilitates greater self-development of the employees
It enables an employee to compare his/her perceptions about self with perceptions of
others
It provides formalized communication links between an employee and his or her
customers
It is effective in identifying and measuring interpersonal skills, customer satisfaction and
team-building skills.

DIS:

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The Appraisal Interview

The supervisor and subordinate review the appraisal and make plans to remedy
deficiencies and reinforce strengths.

Tell and Sell Interview: This includes the ability to persuade an employee to change in a
prescribed manner. It may also require skillful use of motivational incentives.

Tell and Listen Interview:

The ability to communicate strong and weak points of the employee’s performance is
needed during the first part of the interview.

The second part would requiring the appraiser trying to explore the employees feelings
about the appraisal interview. Supervisor is required to listen to disagreements and cope
with defensive behaviour.

Problem solving interview:

This interview seeks to stimulate growth and development in the employee when
problems, needs, dissatisfactions experienced on the job are discussed.

WHO SHOULD DO THE APPRAISAL?

Performance appraisal should be done by the immediate supervisor.

Peer Appraisal: this is effective in predicting future management success. DIS: peer
may collaborate to rate each other highly

Rating Committee: composite ratings tend to be more reliable, fair and valid; cancels out
the bias and halo effect

Self Rating System: employees usually rate themselves higher than are rated by their
supervisors or their peers.

PROBLEMS IN PERFORMANCE APPRAISAL:

Completing a performance appraisal is one of the most difficult tasks assigned to managers. The
following points summarize a few of the common errors made by managers as they conduct
evaluations.

1. The Halo Effect

Allowing one highly favorable (or unfavorable) employee behavior or characteristic to affect
judgment about the entire appraisal ignores other employee strengths and weaknesses.

2. Bias or Prejudice
We all have our biases. However, allowing personal biases or prejudices to influence the appraisal
process can make evaluations unfair and inconsistent. Know your biases.

3. Not Knowing Employees

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Unfortunately, many supervisors don't really know their employees or the quality of their work.
Such evaluations aren't credible.

4. Overemphasis on Isolated Events

A particularly recent or significant event may skew overall judgment of an employee. Take informal
notes about employees (both good and bad things) throughout the year to ensure your evaluation is
based on the entire appraisal period - not just what happened last week.

5. Lenient or Inflated Appraisals

It's difficult for most managers to give employees poor ratings. However, not doing it simply avoids
the problem and doesn't give the employee the opportunity to correct it. It's also awfully difficult to
later discipline or terminate an employee whose appraisals have always been good. It opens up
risks of discrimination charges.

6. Appraisal of Potential Worth

When managing a new or inexperienced employee make sure you rate her on actual job
performance, not on what she might become. Evaluate the employee based on current results and
action. You can use comments to address her potential.

7. Postponing or Skipping the Appraisal

Delays create the wrong impression. Employees begin to perceive that neither they nor the
appraisals are important.

8. Poor Preparation
"Seat of the pants" meetings rarely produce effective results. It quickly becomes apparent that the
appraiser is not well prepared. The employee may assume the manager does not know what is
going on or that she simply doesn't care enough to prepare.

9. Using the Evaluation as Corrective Action

The appraisal meeting should not be a disciplinary session. Inappropriate behavior must be dealt
with when first observed. Discipline and discussion of performance/goals don't work well together.
Corrective action should have been addressed earlier. The evaluation is a time to discuss strengths
and weaknesses, perhaps assessing how an employee has done in correcting past behavior.
However, it isn't the place to raise new disciplinary actions.

10. Overemphasizing Good Performance

Praise and positive reinforcement are terrific. However, compliments quickly become meaningless if
they aren't specific and substantive. They can also give an employee the false impression that you
are completely pleased with everything he does. Be honest and direct.

11. Not Following Through

Most of the time and effort spent in planning for and conducting an effective interview is lost if you
don't follow through with the actions/plans discussed in the evaluation. Performance management
should be a daily (not annual) activity.

12. Avoiding the Tough Issues

Employee problems rarely correct themselves. Nearly everyone is uncomfortable raising sensitive
issues or criticizing others. However, unless the tough issues are addressed they inevitably get
worse, the manager loses credibility, and the employee may not ever know there is a problem.

13. Evaluating Attitude

While we all are forced to deal with employees' attitudes (whatever that means!), attitudes are
basically impossible to evaluate and even harder to change. Focus on results and objective,
observable actions. They're easier to complete and much more readily justified.

14. Accepting Excuses

There may be legitimate reasons why an employee has been unable to complete assigned goals.
However, don't immediately accept excuses for poor performance. Often they're simply not valid. If
they are appropriate then a solution and action plan should be developed to avoid such problems in
the future.

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15. Ignoring Employee Feedback
Asking employees for input only to ignore their comments can be very damaging. It makes
evaluation meetings much less effective, and communicates to employees that while their ideas
may be asked for they're not listened to or acted upon.

Designing A Strategic Performance Appraisal System

Traditionally, performance evaluations have been effective tools to assist organizations in

making pay decisions and to support various employment actions. Today, an increasing
number of companies use appraisals strategically to support company goals and values,
better focus employee efforts, and align employee performance with the company
mission.

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DESIGN AND DEVELOP A PERFORMANCE MANAGEMENT SYSTEM EXPLAINING IN
DETAIL HOW IT WORKS.

Definition
Traditionally, the performance management system was used to measure and evaluate
how well employees perform their activities and how they can perform effectively in the
future.

Strategic Purpose

Today, due to the complex and challenging nature of the working environment,
performance management systems is the integration of performance appraisal systems
with broader HR systems as a means of aligning employee behaviors with organizational
goals. Thus it can be seen that Performance Management systems serve a strategic
function by focusing employee efforts on the type of behaviour required to successfully
achieve organizational goals. For e.g. if the overall strategy of the firm is to be a low-
cost provider, the PA provides the means of knowing whether employees are engaging in
activities to reduce cost. It also ensures that consistency between organizational values
and job behavior through the reinforcement of values and culture.

Equity

In order to establish a successful appraisal system careful attention needs to be given to a

number of important matters concerning its introduction and implementation. A good
measure of success is how those appraised and compensated perceive the accuracy and
fairness of the program. When workers perceive an inequity, they might seek to decrease
the quantity of work they do, incur high level of absenteeism or resign from the job due
to dissatisfaction and demotivation.

INTRODUCTION:

Commitment and Support from Top Management

Appraisal systems should not be introduced without successfully engaging all those
directly involved in implementing the system. Top management should be seen to be
fully committed to the concept of appraisal. They should ensure full consultation with
trade unions and staff representatives, members of staff and managers. In so doing, this
will help build commitment to the appraisal scheme itself and provide resistance to
change.

Purpose/Use of Appraisal
The purpose of the appraisal system should also be determined. There are three broad
purposes to which the performance appraisal system can be employed.

As a developmental tool, the performance appraisal system can be used to improve

performance by pointing out the strengths and weaknesses of the employee and by

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helping employees to identify more effective ways to accomplish important tasks, it can
also help the organization to determine training needs to correct any skills and/or
knowledge deficiencies and provides the supervisors and employees with an opportunity
to discuss employees’ long-term career plans and goals.

As an administrative tool, the assessment can be used to link rewards to performance and
to evaluate the effectiveness of HR policies and practices.

[Strategic Focus]

Training of Raters

Adequate provision will also need to be made for the proper training of appraisers.
Appraisers must be sufficiently skilled to ensure that appraisal activities benefit the
employees rather than simply meet administrative needs. They must also be taught how
to reduce rating errors such as the halo effect, contrast effect, leniency, and central
tendency, how to improve observation skills and to communicate appraisal information in
an objective, constructive manner with rates.

 Contrast effect - The tendency of raters to evaluate persons relative to

each other, rather than on the basis of individual performance evaluation
criteria. To avoid contrast effect, concentrate on how the employee’s
performance compares to the behaviors listed in the skill guide.

 Halo Effect - The tendency to rate a person who is exceptionally strong in one
area high in all other areas. One factor has undue influence on the other
ratings.

 Leniency – Most employees receive more positive ratings than they deserve.
This makes it difficult to later discipline or terminate an employee and opens
up risks of discrimination charges

Central Tendency: This occurs when all employees are being rated as
average. It distorts the evaluation process and makes it less useful for
promotion, salary or counseling purposes. The rater should make sure
that he/she gets the information they need to make confident rating
decisions.

Defining Role and Responsibilities

The human resources department is responsible for design the performance appraisal system,
establish & monitor a reporting system, train managers in how to conduct appraisals and
safeguard performance appraisal records

The supervisor is responsible for evaluating the performance of employees, completing

the appraisal documents and forms, and reviewing appraisals with employees

21
IMPLEMENTATION

Step 1:
The first step involved in the performance appraisal process is to ESTABLISH GOALS
AND STANDARDS which are required by the jobholder. These goals may be derived
from the strategic objectives of the organization and related job description. As such, the
job analysis is the starting point in the process and this would help to ensure that all
relevant aspects of the job are covered. The performance goals should be specific,
measurable, attainable, realistic and a time should be determined for achieving the
objectives.

Once the goals have been established, the employee needs to be informed of what is
expected of him in order to perform the job required. Also, the supervisor needs to
ensure that there is a common understanding between himself and employee on the goals
of the appraisal process. Supervisors may want to further discuss and refine the
performance goals with the employee.

Step 2:
The next step involves the MEASURING OF ACTUAL PERFORMANCE. A good
appraisal system should measure important components of the job, be free from
contaminating influences and not be deficient. It should be reliable and avoid rating
errors. It must be fair to minorities, women and other protected groups. Objective
measures which are typically results-based measures of physical output should be used
and subjective measures which are used to assess traits, behaviours or results should not
constitute a significant aspect of the performance evaluation criteria.

Step 3:
The ACTUAL RESULTS ARE THEN COMPARED AGAINST THE STANDARDS set
to determine any deviations. Performance should be compared against standards of
acceptable performance for the position, and not to a co-worker’s on-the-job
performance. A system that compares employees to each other may undermine
teamwork, communication, and morale.

While the trait based system is inexpensive to develop and easy to use, it has a
high potential for rating errors and is not very useful for feedback, counseling and
development.

BEHAVIORAL METHODS: Focus on specific performance dimensions and are

useful for providing feedback. They are also fair for reward and promotion
decisions. However they can be timeconsuming and costly to develop and use.
There is also some potential for rating error.

RESULTS METHODS have less subjectivity bias and serve to link individual
performance to organization objectives. They are also good for reward and

22
 promotion decisions. However, these too are time consuming to develop and use
and may use deficient or contaminated criteria.

Step 4:

The final stage in the appraisal process is the FEEDBACK SESSION. Here, the
supervisor and employee engage in discussions to discuss the employee’s performance
and progress.

Rater familiar with the ratee’s work

When giving performance feedback to subordinates, supervisors must ensure that the
feedback is credible, specific, constructive and accompanied by concrete examples of
poor or good performance. Credibility is enhanced when the evaluator is seen as being
knowledgeable about the subordinate’s job, has had the opportunity to observe the
behaviour of the subordinate and has taken time to prepare carefully for the assessment
interview.

Two way communication is allowed in the appraisal interview

They should also allow an appropriate degree of participation and ensure that goals for
future performance are set. Providing a format of dialogue between the supervisor and the
employee can have the effect of increasing trust.

The Appraisal Interview

The annual performance assessment interview is a valuable opportunity for the supervisor
and subordinate to communicate about past performance, current concerns, and goals for
the future. Three main approaches to the feedback sessions are:

Telling and Selling: The supervisor tells the employee how good/bad the
employee performance has been and then attempts to persuade the employee to
accept this judgment. This approach is direct and one-sided, and may lead to
defensiveness and resentment. When this happens, the supervisor must recognize
that defensive behaviour is normal. The supervisor should not attack the person.
Examples of behaviours exhibited in the workplace could be used rather than
attacking a personality trait.

Telling and Listening: The supervisor tells the employee what has been right or
wrong and gives the employee a chance to react. The supervisor is required to
listen to disagreements and cope with defensive behaviour.

Problem-Solving: Employees evaluate their own performance and set their own
goals for future performance. The supervisor is primarily a helper and a colleague
rather than a judge.

The formal interview should be a culmination of the ongoing continual process of

informal performance feedback. Nothing should come as a surprise to the employee.

23
As the main purpose of appraisals is to help staff improve their performance, AN
APPEALS PROCEDURE should only be used in exceptional circumstances. However,
in order to help establish the credibility of the system and to maintain goodwill, it is
necessary to establish a formal procedure which is clearly understood by all members of
staff.

MONITORING AND FOLLOW-UP ACTION

It should be noted that the system should be kept under continual review and, where
necessary, modified to meet changing environmental influences or the needs of the
organization. The system should be supported by follow-up actions such as seeing that
the changes in duties and responsibilities actually take place.

24
360-degree Performance Appraisal: Evaluating Employees From All
Angles

Traditional performance appraisals, as discussed above, can be both subjective and

simplistic. At times, they can also be deemed to be "political". In an attempt to improve
this methodology, some companies have turned to 360-degree appraisals. 360 appraisals
pool feedback from a department's internal and external customers to ensure a broader,
more accurate perspective of an employee's performance.

360-degree performance appraisal is an attempt to answer the question: "How can a

supervisor evaluate an employee he or she sees only a few hours each week?"

Using internal and external clients

360-degree performance appraisals offer an alternative by which organizations may gain

more useful performance information about employees. Because all clients/customers an
employee comes into contact with can conceivably have input into the performance
appraisal, this methodology can also makes them more accountable to their customers.

Using a courtroom metaphor, one could say that, rather than having a single person play
judge, a 360-degree appraisal acts more like a jury. People who actually deal with the
employee each day have an opportunity to create a pool of information from which the
appraisal is written. Internal clients may include supervisors, subordinates, co-workers,
and representatives from other departments. External customers may include clients,
suppliers, consultants and customers.

Perceived fairness

Given the use of a wide variety of sources for information in the 360-appraisal process,
this method provides a broader view of the employee's performance. Frequently, the
employee on whom the appraisal is being done (the ratee) will feel that the process is
more fair.

Validity

Very often, an employee's peers know their behaviors best. Consequently, employees
cannot hide as easily in 360-degree appraisals.

Employee development

360-degree appraisal enables an employee to compare his or her own perceptions of their
work performance with the perception of others. As such, the method facilitates

25
employee self-development. Feedback from one's peers is more likely to lead to changed
behaviors.

Accountability to customers

A 360-degree appraisal process provides a formalized communication link between the

employee being evaluated and their customers. These people now have feedback into the
employee's performance rating. As such, the process is likely to make the employee more
accountable to his or her various internal and external customers. Furthermore,
organizations can also use this feedback to create more customer-oriented goals for the
following year.

The raters: how many and who?

One issue employers must solve in implementing a 360-degree appraisal program is

determining how many raters should be involved. Next, the organization must decide
who should do the rating. Generally speaking, less than five raters limits the perspective
while more than ten raters is likely to make the appraisal system complex and time
consuming. A firm would be well advised to develop a workable definition of what
constitutes a peer, an internal customer, an external customer, a supervisor, etc. For
example, to be useful, the customer ought to be one who has significant interactions with
the ratee.

Some organizations permit the ratee to develop a list of key internal and external
customers that he or she interacts with. The ratee then recommends five to ten of these
individuals to serve as raters. In this process, the supervisor still retains the ultimate
responsibility for the appraisal and therefore ensures that appropriate raters are selected.
The ratee is thus prevented from stacking the deck with supportive customers.

Another option has the raters selected at random from the ratee's team by a computer-
generated system. Those selected are then notified by E-mail to participate in the
appraisal.

Limitations on the use of external clients

An organization contemplating the use of the 360-degree process must keep in mind that
reviewing that organization's employees' performance is not the customer's business. To
ensure the customers' cooperation, the process should be a mutually beneficial process.

Furthermore, the various external customers would ideally evaluate the ratee only on the
behaviors or work incidents that they have directly observed. This, of course, also holds
for internal raters.

26
Summarizing the data

Once all raters have supplied their appraisals, the employee's supervisor is generally
responsible for summarizing the data and determining the final performance rating.

After summarizing the data, the supervisor conducts the formal appraisal interview with
the ratee.

Another variation of the summary process makes the ratee responsible for summarizing
the feedback data from the raters. The ratee then submits a summary analysis to his or her
supervisor. The ratee and the supervisor then meet to determine the ratee's final
performance rating and development plan.

Rater confidentiality

Organizations must decide whether the feedback from the various raters should be kept
anonymous or be identified to the employee. Sometimes raters give fuzzy feedback
because of the fear that the feedback might come back to them.

One rule rule might be that no rater can give negative feedback in the appraisal unless
that rater has previously given the feedback directly to the ratee. Most organizations
should start with a policy of confidentiality until sufficient understanding, maturity and
organizational trust is achieved

27
 MANAGING THE CHANGE PROCESS:
HRM’s role in managing the change process associated with organizational
restructuring exercises.
• Transformational Leadership How can HRM prepare employees for
• Preparing employees for change Change
• Anticipating and managing resistance to change Type of employee empowerment
Transformation leadership as a key to
• managing the transition managing change
• Strategically managing downsizing

For any new HR practices to be implemented successfully, they have to be first accepted by
internal customers. In introducing a new HR practice to the sytem, there are four change related
problems which must be considered:

Resistance to Change

As organizations have become less stable and predictable, strong bonds of trust are likely to be
replacing bureaucratic rules in defining expectations and relationships. Managers who are not
trusted are not likely to be effective leaders.

Transformational Leadership:

C. Transformational Leadership

1. Most of the leadership theories presented in the previous

chapters—for instance, the Ohio State studies, Fiedler’s model,
path-goal theory, and the leader participation model—have
concerned transactional leaders.

2. These kinds of leaders guide or motivate their followers in the

direction of established goals by clarifying role and task
requirements.

3. Transformational leaders inspire followers to transcend their own

self-interests for the good of the organization.

4. They change followers’ awareness of issues by helping them to

look at old problems in new ways; and they are able to excite,
arouse, and inspire followers to put out extra effort to achieve
group goals.

5. Transformational leadership is built on top of transactional

leadership—it produces levels of follower effort and performance
that go beyond what would occur with a transactional approach
alone.

6. Evidence indicates that transformational leadership is more

28
 strongly correlated with lower turnover rates, higher productivity,
and higher employee satisfaction.

LIST AND DISCUSS THE COMMON ERRORS THAT THWART

CHANGE EFFORTS IN ORGANIZATIONS. HOW MIGHT THESE
ERRORS BE OVERCOM?

According to John Kotter of Harvard Business School the most common

errors that lead to the failure of change efforts in organizations are:

• Allowing too much complacency – According to Kotter,

organizational change often fail to achieve its objectives when
complacency levels are high. Some of the sources of
complacency are lack of sufficient feedback from external
sources or having a low overall performance standards.
• Failing to create a sufficiently powerful guiding coalition – the
coalition of managers and others guiding the change is always
powerful in terms of their formal titles, reputations and
relationships, and the capacity for leadership.
• Underestimating the power of the vision
• Undercommunicating the vision
• Permitting obstacles to block the new vision
• Failing to create short-term wins
• Declaring victory too soon
• Neglecting to anchor changes firmly in the corporate culture

Therefore to implement a major change in an organization, the

following steps must be taken.

Firstly, there is a need to create a sense of urgency among employees

that change is necessary. Urgency helps motivate personnel to
overcome complacency, fear, anger, or pessimism, which result in
resistance.

Secondly, there is a need to create a guiding coalition. Successful

change needs effective leadership to provide the vision and to manage
the process. The guiding team requires individuals with the right
attitude, skills, and power.

29
Thirdly, steps should be taken to develop a vision to help direct the
change effort and also develop a strategy for achieving that vision.
The guiding team is empowered to create a compelling picture of the
organization's future. The successful vision will be bold, inspirational,
clear, and credible.

30
In addition, constant interaction is necessary with all stakeholders for
change to be successful. Thus, there is a need to communicate the
change vision. With a vision in place, the guiding team has a powerful
tool for obtaining the buy-in of management and the workforce.
Persuasive communication requires leaders to deliver the message
personally, clearly, and with confidence.

The next step is to get rid of obstacles that undermine the change
vision. Barriers in the mind are those self-fulfilling prophecies people
tell themselves about large-scale change being impossible. Possible
solutions to remove barriers include communicating small success
stories and bringing in people from outside the organization to recount
corporate victories in similar circumstances.

Also, create or find short-term wins and then sincerely communicate

them throughout the organization. The objective is to have successes
that show clear progress, which is both evident and meaningful.

Do not declare victory until the new approaches are sink deeply into
the work culture. It is essential for change leaders to maintain the
momentum created by the quick wins, otherwise urgency fades. With
early successes under the belt, change participants can directly
address the more difficult political and organizational issues. People
need to feel motivated by the successes. They should also be
empowered to take further risks without feeling that the cost of failure
would be overwhelming.

Often, after initial alterations are made in the organization, managers

and employees have a tendency to slip back into old routines.
Sustained changes in work processes require changes in culture and
these changes take time. By promoting individuals who reflect the
new norms, management builds a leadership-base around the new
culture and reinforces the type of traits they desire in their managers.
Organizations can also use hiring and the new-employee orientation
process as a method for emphasizing the new expectations into the
culture

Kotter sees the problem of one of leading change. He makes the

distinction between management and leadership by stating that
management is a set of processes that can keep a complicated system
of people and technology running smoothly. On the other hand,
leadership is a set of processes that creates organizations in the first
place, or adapts them to significantly changing circumstances.

31
32
ERRORS, HOW TO OVERCOME ERRORS; ACTION TO TAKE

Kotter identified eight common errors that organizations make in their effort to bring
about change.

One such error is allowing too much complacency such as not receiving sufficient
feedback from external sources or setting too low an overall performance standard. In
order to overcome complacency he recommended that the organization create a sense of
urgency among employees that change is necessary. This involves discussing potential
crises and identifying major opportunities that would come about as a result of the
change.

Another error made is failure to create a sufficiently powerful guiding coalition to lead
the change process. The guiding coalition requires individuals that are powerful in their
relationships, roles, and capacity to lead. The manager’s job is to encourage the group to
work as a team.

Thirdly, organizations underestimate the power of a vision. The guiding coalition is

responsible for shaping and sharing the vision and developing strategies for achieving the
vision. The vision helps to inspire action and thus must be bold, clear and inspirational.
Kotter felt that plans and programs serve to complement, not substitute, the vision.

Fourthly, they undercommunicate the vision. This might be done by holding too few
meetings or sending too few memos. The message of the vision should be communicated
to stakeholders and employees in a personal, confident manner.

Another failure is permitting obstacles such as the perceptions, current organization

structure or lack of training of employees to block the vision. This might be
overcome by making changes to technology, products or systems that might undermine
the vision or even removing personnel who do not ascribe to the vision.

The next error is failing to create short term wins. The objective should be to highlight
and reward progress. Managers should establish goals and when these are achieved,
reward employees via promotion, salary increase etc.

Kotter warned against declaring victory too soon. The change process takes time.
Victories should not be declared until the change process is part of the organization’s
culture.

Finally, organizations neglect to anchor changes firmly in the corporate culture.

Management should make a conscious effort to show people how specific behaviours
have helped to improve performance. One way in which this can be done is to emphasize
expectations of the new culture during the hiring and orientation processes.

For Kotter successful transformation is 70 – 90% leadership and 10 –

30% management.

33
ORGANISATIONAL DEVELOPMENT

Organization development seeks to help organizations cope with forces

for change in their environments and to improve their internal
problem-solving abilities.

Teams and teamwork

are part of the foundation of organization development

French and Bell described the seven phases of a typical OD

Programme as follows:

Entry – The organization development process begins by forming a

relationship between the client and the consultant. Consultants need
to determine the client’s readiness for change, including whether
people are motivated to participate in the process, are open to
meaningful change, and possess the abilities to complete the process.

Contract – A contract is developed by establishing mutual expectations

and agreements on expenditures.

Diagnosis - Here we collect data in order to find the opportunities and

problems in the organization. This stage establishes the appropriate
direction for the change effort. Data collection may occur through
interviews, survey questionnaires, direct observation, analysis of
documents.

Feedback - This two-way process serves to tell those what was found,
based on an analysis of the data. This provides an opportunity for the
organization's people to become involved in the change process, to
learn about how different parts of the organization affect each other,
and to participate in selecting appropriate change.

Planning Change – This step is aimed at addressing the issues

uncovered in the diagnosis. An implementation plan may be
developed that is based on the assessment data.

Intervention – This phase involves implementing actions that are

planned. Here, the actual change process is carried out.

Evaluation – the interventions are evaluated and if necessary

modifications are made.

34
 HUMAN RESOURCES PLANNING

THE PLANNING STAGE: Tool & Techniques

Week 3
• Definitions of HR Planning
• The HR Planning Model
- Evaluating the organization’s existing Strategic Objectives
- Information Gathering
- Demand & Supply Forecasting
- The Matching Process
- Developing HR Plans & Strategies for Managing the Over Supply or Under
Supply of Human Resources
- Evaluation
• Its role as a Strategic Lever

HRP is the process by which organizations anticipant further staffing needs and plan
programmes to ensure that the correct number and type of employees are available when
needed.

Traditionally, the prime concern with HRP relates to balancing the demand for and the
supply of human resources. However, in the current market place there is a strong focus
on work teams instead of individuals, the move away from job descriptions, less
supervision and increased worker responsibility. As a result, HRP must be linked to the
development of the organization as a whole, and should be related to corporate objectives
and to an organization structure capable of achieving these objectives. The HR
practitioner must be an astute expert in the field in order to maintain the company’s
strengths at the full capacity needed at the particular point in time.

IMPORTANCE:

Foresight is necessary to ensure that appropriately qualified staff will be available to

implement an organization’s future plans. The use of HRP can assist organizations to
foresee changes and identify trends in staff resources, and to adopt personnel policies
which help to avoid major problems.

Strategic basis for human resource decisions. HRP helps the organization as a whole
forecast future conditions and develops objectives for the human resource programs to
meet the organization’s needs. It allows managers to anticipate change as well as provide

35
strategic methods for addressing present and anticipated workforce issues. Changes in
skills, competencies, and key positions can be anticipated as a result of retirements and
natural attrition.

Links expenditures to organization’s long-term goals and objectives. Human

resources are expensive. The higher the percentage of the budget comprised of human
resources-related costs, the more important is the need to plan. The cost of employee
turnover, replacement, retraining, and retention further increases these costs. HRP can
reduce these costs by ensuring more efficient and effective recruitment, training, and
retention. It also provides other benefits such as background information for position
management and succession planning; better identification of training and development
needs for the long-term; linkage of training with performance goals; more cost effective
programs; more useful information on workforce diversity.

Links recruitment, development and training decisions to organizational goals. HRP

provides a clear rationale for linking expenditures for recruitment, training, employment
development, retention, and other human resource programs. Improvements in skills,
personnel, and procedures will assist organizations in achieving their goals.

Address changes in program direction that impacts the type of work being performed
and/or how the work is being performed. HRP will help to identify work that can be
contracted to the private sector (outsourcing) and opportunities to delayer management.
Lastly HRP becomes especially critical when organizations consider mergers, relocation
of plants, downsizing or the closing of operating facilities which is characteristics of
today’s working environment. As such, HRP is instrumental in helping management
determine how it should move from its current manpower position to its desired position
in order to carry out the integrated plan of the organization.

During downsizing organizations must not only decide which employees will be let go
but also which employees to have and retain. Thus, HRP serves as a catalyst for
formulating and implementing new HRM programs and policies.

HRP could lead to greater employee satisfaction. Through the use of a good HRP system
employees have a better chance to utilize their talents and to share in training and
development experiences.

HRP PLANNING MODEL:

Introduction:
The most critical element in the process is management’s appreciation for the ways in
which its human resource decisions affect the company’s ability to achieve its business
plans. HRP must not only be seen as a way of coping with possible crises such as
resignations or serious illnesses but HRP must be seen as a way of making the
organization more flexible and entrepreneurial.

36
Traditional HR Planning is usually initiated and managed by the HR department.
However, since information is needed from all parts of the organization, Strategic HR
Planning involves line managers as well as HR experts.
The process begins with EVALUATING THE ORGANIZATION’S EXISTING
STRATEGIC OBJECTIVES. Thus, the HR manager must have specific knowledge of
the organization strategic goals and have an input in the strategic plan. The requirements
of meeting these objectives are then compared with the human resources available in the
market place.

The second step in the HRP process involves the GATHERING OF INFORMATION
FROM THE EXTERNAL AND INTERNAL ENVIRONMENT. Information which can
be gleaned from the external environment includes workforce patterns and conditions,
social values and lifestyles and technological developments. Information from the
internal environment covers areas pertaining to retirement patterns, current workforce
skills, or decisions to automate facilities. A system of environmental scanning may be
employed to assist in information managers of what is likely to happen so that they can
prepare for shifts in the environment.

The third step involves the DEMAND AND SUPPLY FORECASTING OF LABOUR.
Forecasting is necessary to ensure that appropriate staffing will be available to carry out
the organization plans. Here, the HR manager seeks to identify the supply and demand
for the various human resources. Three sets of forecasts needs to be done one for
personnel needs, supply of inside candidates and external candidates. Statistical methods
as well as qualitative methods may be employed to forecast demand and supply of labour.
Statistical methods such as trend analysis, ration analysis and productivity ratios are
excellent for capturing historical trends and also predictions are more precise under the
right conditions. However, this method does not take into account important events that
have no historical precedence and as such managerial judgment whereby each department
estimates it own needs for employees or best or worse case scenarios may be needed.

Fourthly, the likely results of forecasting activity are the IDENTIFICATION OF A

POTENTIAL MISMATCH BETWEEN FUTURE DEMAND AND SUPPLY. The HR
manager will look at the variances which arise between the demand and supply of labour
and account for them.

In studying these, if the HR practitioner finds that there is a surplus then there might be
some form of dejobbing whether by laying off workers, encouraging early retirement.

On the other hand, if there is a shortage the company may decide to recruit new
employees or take existing employees to work overtime.

37
Transformational Versus Transactional Leadership: The leader's
approach to influence
Transactional Leaders- Transactional leaders views the leader-follower
relationship as a process of exchange. They tend to gain compliance by offering
rewards performance and compliance or threatening punishment for non
performance and non compliance. The transactional leader tends to use
compliance approaches 1-5 listed below, in that they attempt to tap the intrinsic
process and instrumental sources of motivation.
Transformational Leaders- Transformational leaders, in contrast, are more
visionary and inspirational in approach. They tend to communicate a clear and acceptable
vision and goals, with which employees can identify and tend to engender intense
emotion in their followers. Transformational leaders use compliance approaches 6-10
below in that they attempt to tap the self concept and goal identification sources of
motivation. Rather than exchanging rewards for performance, transformational leaders
attempt to build ownership on the part of group members, by involving the group in the
decision process. When transformational leaders are success, they are able to move
followers from external to internal control, that is, the desired behaviors or behavioral
patterns become internalized rather than being driven through extrinsic exchange.
When the behavior becomes internalized, the leader need to monitor employee
behavior is greatly reduced. Transformational leaders facilitate this transition
from external to internal control by:

1. Changing the mental models of employees

2. Linking desired outcomes to values held by employees
3. Creating employee ownership in outcomes so that positive outcomes
validate the self concept of employees.
4. Building strong employee identification with the group or organization.

Bass defined transformational leadership in terms of how the leader affects followers,
who are intended to trust, admire and respect the transformational leader.

He identified three ways in which leaders transform followers:

• Increasing their awareness of task importance and value.

• Getting them to focus first on team or organizational goals, rather
than their own interests.
• Activating their higher-order needs.

Charisma is seen as necessary, but not sufficient, for example in the way that
charismatic movie stars may not make good leaders. Two key charismatic effects that
transformational leaders achieve is to evoke strong emotions and to cause identification
of the followers with the leader. This may be through stirring appeals. It may also may
occur through quieter methods such as coaching and mentoring.

Bass has recently noted that authentic transformational leadership is grounded in moral
foundations that are based on four components:

38
 • Idealized influence
• Inspirational motivation
• Intellectual stimulation
• Individualized consideration

...and three moral aspects:

• The moral character of the leader.

• The ethical values embedded in the leader’s vision, articulation, and
program (which followers either embrace or reject).
• The morality of the processes of social ethical choice and action that
leaders and followers engage in and collectively pursue.

In contrast to Burns, who sees transformational leadership as being inextricably linked

with higher order values, Bass sees it as amoral, and attributed transformational skills to
people such as Adolf Hitler and Jim Jones.

Transformational Leadership
Disciplines > Leadership > Leadership styles > Transformational Leadership
Assumptions | Style | Discussion | See also

Assumptions

People will follow a person who inspires them.

A person with vision and passion can achieve great things.

The way to get things done is by injecting enthusiasm and energy.

Style

Working for a Transformational Leader can be a wonderful and uplifting experience.

They put passion and energy into everything. They care about you and want you to
succeed.

Developing the vision

Transformational Leadership starts with the development of a vision, a view of the

future that will excite and convert potential followers. This vision may be developed by
the leader, by the senior team or may emerge from a broad series of discussions. The
important factor is the leader buys into it, hook, line and sinker.

39
Selling the vision

The next step, which in fact never stops, is to constantly sell the vision. This takes
energy and commitment, as few people will immediately buy into a radical vision, and
some will join the show much more slowly than others. The Transformational Leader
thus takes every opportunity and will use whatever works to convince others to climb
on board the bandwagon.

In order to create followers, the Transformational Leader has to be very careful in

creating trust, and their personal integrity is a critical part of the package that they are
selling. In effect, they are selling themselves as well as the vision.

Finding the way forwards

In parallel with the selling activity is seeking the way forward. Some Transformational
Leaders know the way, and simply want others to follow them. Others do not have a
ready strategy, but will happily lead the exploration of possible routes to the promised
land.

The route forwards may not be obvious and may not be plotted in details, but with a
clear vision, the direction will always be known. Thus finding the way forward can be
an ongoing process of course correction, and the Transformational Leader will accept
that there will be failures and blind canyons along the way. As long as they feel
progress is being made, they will be happy.

Leading the charge

The final stage is to remain up-front and central during the action. Transformational
Leaders are always visible and will stand up to be counted rather than hide behind their
troops. They show by their attitudes and actions how everyone else should behave.
They also make continued efforts to motivate and rally their followers, constantly doing
the rounds, listening, soothing and enthusing.

It is their unswerving commitment as much as anything else that keeps people going,
particularly through the darker times when some may question whether the vision can
ever be achieved. If the people do not believe that they can succeed, then their efforts
will flag. The Transformational Leader seeks to infect and reinvest their followers with
a high level of commitment to the vision.

One of the methods the Transformational Leader uses to sustain motivation is in the use
of ceremonies, rituals and other cultural symbolism. Small changes get big hurrahs,
pumping up their significance as indicators of real progress.

Overall, they balance their attention between action that creates progress and the mental
state of their followers. Perhaps more than other approaches, they are people-oriented
and believe that success comes first and last through deep and sustained commitment.

40
Discussion

Whilst the Transformational Leader seeks overtly to transform the organization, there is
also a tacit promise to followers that they also will be transformed in some way,
perhaps to be more like this amazing leader. In some respects, then, the followers are
the product of the transformation.

Transformational Leaders are often charismatic, but are not as narcissistic as pure
Charismatic Leaders, who succeed through a believe in themselves rather than a believe
in others.

One of the traps of Transformational Leadership is that passion and confidence can
easily be mistaken for truth and reality. Whilst it is true that great things have been
achieved through enthusiastic leadership, it is also true that many passionate people
have led the charge right over the cliff and into a bottomless chasm. Just because
someone believes they are right, it does not mean they are right.

Paradoxically, the energy that gets people going can also cause them to give up.
Transformational Leaders often have large amounts of enthusiasm which, if relentlessly
applied, can wear out their followers.

Transformational Leaders also tend to see the big picture, but not the details, where the
devil often lurks. If they do not have people to take care of this level of information,
then they are usually doomed to fail.

Finally, Transformational Leaders, by definition, seek to transform. When the

organization does not need transforming and people are happy as they are, then such a
leader will be frustrated. Like wartime leaders, however, given the right situation they
come into their own and can be personally responsible for saving entire companies.

Transactional Leadership
Disciplines > Leadership > Leadership styles > Transactional Leadership
Assumptions | Style | Discussion | See also

Assumptions

People are motivated by reward and punishment.

Social systems work best with a clear chain of command.

When people have agreed to do a job, a part of the deal is that they cede all authority to
their manager.

The prime purpose of a subordinate is to do what their manager tells them to do.

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Style

The transactional leader works through creating clear structures whereby it is clear
what is required of their subordinates, and the rewards that they get for following
orders. Punishments are not always mentioned, but they are also well-understood and
formal systems of discipline are usually in place.

The early stage of Transactional Leadership is in negotiating the contract whereby the
subordinate is given a salary and other benefits, and the company (and by implication
the subordinate's manager) gets authority over the subordinate.

When the Transactional Leader allocates work to a subordinate, they are considered to
be fully responsible for it, whether or not they have the resources or capability to carry
it out. When things go wrong, then the subordinate is considered to be personally at
fault, and is punished for their failure (just as they are rewarded for succeeding).

Whereas Transformational Leadership has more of a 'selling' style, Transactional

Leadership, once the contract is in place, takes a 'telling' style.

Discussion

Despite much research that highlights its limitations, Transactional Leadership is still a
popular approach with many managers. Indeed, in the Leadership vs. Management
spectrum, it is very much towards the management end of the scale.

The main limitation is the assumption of 'rational man', a person who is largely
motivated by money and simple reward, and hence whose behavior is predictable. The
underlying psychology is Behaviorism, including the Classical Conditioning of Pavlov
and Skinner's Operant Conditioning. These theories are largely based on controlled
laboratory experiments (often with animals) and ignore complex emotional factors and
social values.

In practice, there is sufficient truth in Behaviorism to sustain Transactional approaches.

This is reinforced by the supply-and-demand situation of much employment, coupled
with the effects of deeper needs, as in Maslow's Hierarchy. When the demand for a skill
outstrips the supply, then Transactional Leadership often is insufficient, and other
approaches are more effective.

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Burns' Transformational Leadership Theory
Disciplines > Leadership > Leadership theories > Burns' Transformational Leadership Theory
Assumptions | Description | Discussion | See also

Assumptions

Association with a higher moral position is motivating and will result in people
following a leader who promotes this.

Working collaboratively is better than working individually.

Description

Burns defined transformational leadership as a process where leaders and followers

engage in a mutual process of 'raising one another to higher levels of morality and
motivation.'

Transformational leaders raise the bar by appealing to higher ideals and values of
followers. In doing so, they may model the values themselves and use charismatic
methods to attract people to the values and to the leader.

Burns' view is that transformational leadership is more effective than transactional

leadership, where the appeal is to more selfish concerns. An appeal to social values thus
encourages people to collaborate, rather than working as individuals (and potentially
competitively with one another). He also views transformational leadership as an
ongoing process rather than the discrete exchanges of the transactional approach.

Discussion

Using social and spiritual values as a motivational lever is very powerful as they are
both hard to deny and also give people an uplifting sense of being connected to a higher
purpose, thus playing to the need for a sense of meaning and identity.

Ideals are higher in Maslow's Hierarchy, which does imply that lower concerns such as
health and security must be reasonably safe before people will pay serious attention to
the higher possibilities.

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MANAGING CHANGE

Today’s business environment produces change in the workplace more suddenly and frequently
than ever before. Mergers, acquisitions, new technology, restructuring and downsizing are all
factors that contribute to a growing climate of uncertainty. Jobs, and even health can be placed at
risk, jeopardizing productivity and profitability.

Managing change is a process in which the HR manager and the organization develop
plans to influence, implement and control the effects as opposed to just letting it happen.

Alvin Toffler, in his book the Future Shocks Changes are accelerating at alarming rates in
science and technology, social relationships, social structure, land and global events.

Two ways in which change can be managed is through strategy and organization
development:

Organization development is any planned programme for managing change. It is usually

construed as the management of change in organizational culture.

Despite the potential positive outcomes, change is often resisted at both the individual
and the organizational level. People are likely to resist change which is perceived as
reducing either directly or indirectly their pay or other rewards; if the change is likely to
prove inconvenient or reduce freedom of action, there will be resistance.

One way of overcoming resistance to change in the organization is by getting people who
will be affected by the change involved in planning and rewarding them for desired
behaviour.

Style of Managerial behaviour:

TRANSFORMATIONAL LEADERSHIP:

Organizations today in a globalized economy face more change and increased

competition and as such transformational leadership is vital to their success.

TRANSFORMATION LEADERSHIP involves changing the beliefs, needs and values

of the followers.

Theorists

BURNS defines transformational leadership as a process where leaders and followers

engage in a mutual process of raising one another to higher levels of morality and
motivation.

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For BASS, transformational leadership, in contrast attempt and succeed in raising
colleagues, subordinates, followers, clients and all constituents to a greater awareness
about isues of task importance and values. This heightening of awareness requreis a
leader with vision, self confidence and inner strength to argue successfully for what he
sees as right or good, not for what he sees as popular or according to accepted norms.
Leaders transform followers by getting them to focus first on team or organizational
goals rather than their own interest and by activating their higher order needs.

Assumptions

The assumptions of transformational leadership are that people will follow a person who
inspires them, a person with a vision and achieve great things and that the way to get
things done is by injecting enthusiasm and energy.

Activities

Three sets of activities associated with transformational leadership is the creation of a

vision, mobilization of commitment to the vision and institutionalization of change
throughout the organization.

According to John Kotter, one error that lead to the failure of change is underestimating
the power of a vision. Successful change needs effective leadership to provide the vision
and to manage the process. The development of a vision can help to direct the change
effort and develop a strategy for achieving that vision. The transformational leader is
instrumental in shaping and sharing the vision developing strategies for achiving that
vision. Also, in order for the change process to be successful, there is a need to
communicate the change vision.

On the other hand, TRANSACTIONAL LEADERSHIP is based on the assumptions

that people are motivated by reward and punishment, and that the prime purpose of a
subordinate is to do what their managers tell them to do. The transactional leader
exchanges something he/she values for something valued by the followers.

Bass notes that transactional leaders look to consider how to marginally improve and
maintain the quality and quantity of performance, how to substitute one goal for another,
how to reduce resistance of particular action and how to implement decisions.

45
QUESTIONS:

JOB ANALYSIS
1. Define job analysis
2. What is the traditional definition and characteristics to JA
3. why is there a new approach to JA
4. what is the new approach
5. what is the function of competencies
6. name two competency analysis procedures
7. state what is involved in work analysis and work planning
8. what effect does the competency approach has on the change process
9. What is the first step in the job analysis process
10. List the other steps in the JA process
11. Why does background information needs to be reviewed
12. What jobs should be selected for analysis
13. What is the fourth step in the JA process.
14. Why does the information from the job analysis needs to be reviewed with
workers/supervisors
15. Define (a) job description (c) job specification
16. List the areas that are derived from the JA information
17. Why is JA known as the bedrock of all personnel functions
18. List 5 HR activities which require information from JA exercise.
19. Define recruitment.
a. How is it related to Selection.
b. What is the role of JA after the vacancy has occurred
c. How can recruitment help HRP and Selection
20. List three purposes of training
a. What is training needs assessment
b. List two constraints to recruiting
c. What are the functions of training
d. How can job analysis help identify gaps in training
e. List two constraints to training
21. Define performance appraisal

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 a. What is the function of the job description in the performance appraisal
process
b. List three constraints to performance appraisal
22. Define HRP
a. How is Job analysis useful in HRP
23. What is the aim of job design
a. Name three tasks of job design
b. How is JA information useful in job design

47
HUMAN RESOURCE PLANNING:

1. Define HRP
2. What is the traditional view of HRP
3. What is the new view of HRP
1
4. List four uses of HRP
5. What is the most critical element in the HRP process.
6. How should HRP be viewed.
7. Why should line managers be involved the process
8. List the steps in the HRP process
9. Why does information needs to be gathered from the external and internal
environment
10. What is the purpose of environmental scanning
11. What is the purpose of external benchmarking
12. Why is forecasting necessary
13. How many types of forecast must be done
14. Name three statistical and two judgmental methods of forecasting
15. State one adv of statistical and one of judgmental
16. which method may be useful when orgs are going through a transition
17. What is the fourth step of HRP
18. What measures may be employed to deal with (a) surplus (b) shortages
19. What is the last step of the planning process
20. Why is this step necessary

1
HRP serves as a strategic basis for HRM decisions: HRP may provide an objective view of an
organization where information used is comprehensive and accurate, allowing the best decisions to be
made.

Links recruitment, development and training decisions to organization goals: HRP seeks to make the links between strategy, structure
and people more explicit. By introducing HR practices as a bundle they can serve to enhance and support each other.

48
RECRUITMENT AND SELECTION:

1. Define recruitment
2. How does it related to HRP and selection
3. Define selection
4. What is the strategic role of selection
5. What is the first step in the recruitment process
6. List the other steps of the recruitment process
7. What are the advantages of internal recruitment
8. What are the disadvantages of internal recruitment
9. What is the most obvious advantage of external recruitment
10. What are some disadvantages of external recruitment
11. List three nontraditional methods of recruiting
12. What are three weaknesses of the selection process
13. Why did Higgins see the interview as the weakest link in the selection process
14. As it relates to the interview what three errors can the recruiter make

49
PERFORMANCE APPRAISAL:

1. Define performance appraisal

2. What is the traditional view
3. What is the new view. Given an example
4. Define performance management system
5. What areas need to be given attention when establishing an appraisal system
6. What is a good measure of success of the system
7. In the introductory stage, what factors need to be taken into consideration
8. How can top management help build commit and overcome resistance to change
9. Define 5 rating errors
10. How can these problems be avoided
11. Name the steps of the PM system
12. For each step, state how fairness can be built into the process
13. What would happen when employees are compared to each other
14. What is the purpose of feedback
15. List 3 ways in which to ensure effective feedback
16. How can credibility be built into the feedback session
17. Why should the system be kept under continual review

50