Professional Documents
Culture Documents
Before Mid
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Acquiring People
Training People
Appraising People
Compensating People
Acquiring People:
Selecting the most suitable person to perform various job activities is called acquiring people.
Training People:
Teaching employees various skills required to perform the job activities is called training people.
Appraising People:
To evaluate the performance of people and to give them feedback is called appraising people.
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Compensating People:
Providing financial and non financial benefits to the employees against their services or contribution
for the organization is called compensating people.
Resources Approach
Mistakes Approaches
Resources Approach:
Every organization consists of three important ingredients/factors including
Financial Resources
Physical Resources
Human Resources
Where human are considered to be the most important resource as they (Human) are going to manage
physical and financial resources as well, so studying about HRM practices contribute/develop the
managers knowledge about how to manage the human resources more effectively.
Mistakes Approach:
The basic knowledge about the HRM functions may provide the managers an insight/understanding
about managing people more effectively and they should be able to avoid various mistakes while:
Selecting the right person for the job
Designing and conducting the training programs
Evaluating the performance of employees and providing them with feed back
Designing various compensation plans for the members of organization
Role of HR Department
We can understand the role of HR department by studying the following terms:
Line Management
Staff Management
Line Management:
The relationship between two parties where one party has the right to make and impose the decisions
and the other party has to follow them, creating a supervisor-subordinate relationship.
Line manager is that person who has line function
Line Management/Line Function: the function of giving order to others
Line Authority:
Staff Management:
The relationship between two parties where one party may suggest the other party about various
aspects creating an advisory relationship
Staff Manager: the person who has the advice function is called staff manager.
Staff Function/ Staff Management: the function of giving advice to others
Staff authority:
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Employees Advocacy:
The rule of HR Department with in an org. where they suggest the other department and employees
regarding:
Recruitment and selection procedures that may help in selecting the right person for the job
Designing training programs to develop the employees to fulfill future requirements
Making evaluations and feedback to keep organization on right track
Designing compensation plans to retain the employees within the organization
Managing employees relations through negotiations and dispute settlements
Strategic HRM
Strategy:
Long-term action plan based on a critical evaluation of internal and external factors to create
competitive advantages.
Long term plan
SWOT analysis
i.
Internal SWOT: Strength and Weakness
ii.
External SWOT: Opportunity and Threats
Competitive Advantages
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Strategic HRM
Aligning/matching the HR functions with the overall strategy of organization by considering all the
legal and ethical issues.
1.
Business Proficiency:
An insight/ understanding about internal and external environment of the business that may be helpful
for the manager s to design various policies for the organization
2.
Leadership Proficiency:
The managers should be aware about the basic techniques that how to provide others with guidelines
and to motivate them to follow those guidelines.
Indentify future directions for others
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3.
Learning Proficiency:
Managers should continuously monitor their external environment to identify various changes to keep
themselves updated about most recent trends. This will be helpful in adopting the changes which are
desired by the firm and to ignore various characteristics/changes which are not beneficial for the
organization.
4.
HR Proficiency:
The managers must have the knowledge about the basic HR functions including:
Acquiring People
Training People
Appraising People
Compensating People
Acquiring People
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According to this graph when we analyze the organization we see that in 2009 we hired 5
people but in 2010 we hired 10 people and in 2011 we hired 15 people. So according to this
trend we have to hire 20 people for the year 2012.
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Ratio Analysis:To identify the numbers of individuals required by determining the ratio b/w outputs and
human inputs.
Organizations keep data tables like this one in their records and then on the base of these
tables they decide their requirements.
Expert Analysis/Assessment:To determine the quantity of individuals required by the firm by obtaining opinion of experts
who have been performing similar kind of job for a longer period of time.
It is a subjective approach which is not easily justifiably as the opinion depends upon the
personal judgment of that expert.
If the organization has no past trends then trend analysis is not useable, if organization has no
eligibility to find ratios then ratio analysis is not useable, and on this situation the organization
will use expert analysis method by hiring to an expert.
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(i)
(ii)
(iii)
(iv)
(v)
(vi)
Work Activities
Human Behavior/ Personality
Machinery/Tools/Equipment
Performance Standards
Job Content/Physical Environment
Skill Requirements/Job Specifications
Work Activities
Information regarding the activities and operations to be performed by the
incumbent/individual who is responsible to perform that job. It may include the routinely
and occasionally activities.
For example for a student attending a lecture is a routinely activity and to give
presentation is occasionally activity.
Human Behavior/ Personality
The information regarding the specific type of personality traits or the behavioral traits
required to perform the mentioned activities, like confidence, trust worthy, etc.
Machinery/Tools/Equipment
The information regarding helping material and equipments that may facilitate the job
performance and that are to be used by the job holder. For example, white board,
multimedia etc. for a teacher.
Performance Standards
Information regarding the specific standards that should be observed by the job holder and
that may be used during performance evaluation of employees.
For example to report to college for lecture at 8:00 AM, or to produce various units.
When we make specific to work activities that how to perform those activities, then this
specification becomes performance standards.
Like for a student the work activity is to study but when we make it specific that he will
study during 9:00 am to 10:00 am, then it will become a performance standard.
Job Content/Physical environment
The information regarding the physical working conditions and specific objects like
temperature, noise, pollution, office or field work, working within minus temperature etc.
Skill requirements/ Job specifications
The information regarding the specific qualifications and skills required by/in a human to
perform a job like knowledge, expertise etc.
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(i)
(ii)
(iii)
Performance evaluation
The information regarding performance standards is helpful in comparing with actual
performance with those standards to evaluate the employees accordingly.
(iv)
(v)
(vi)
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Process Chart:
The graphical representation of various processes within organization that how input are
converted in to output.
Step 6. Documentation
To write down all the information in a logical and comprehensive manners preparing to important
documents to the organization
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Interview
Questionnaire
Observation
Participants Diary
Multiple Methods
i.
Interview:
Types of Interview:
a. Structured
b. Un-structured
c. Semi-structured
Interviews are costly and time taking.
ii.
Questionnaire:
A structured set of questions designed to obtain information from a number of
respondents/ employees regarding specific issues.
Structured
Large number of respondents
Information regarding specific issue
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Second most widely used method less costly and time taking. Used when information is required
from a large number of employees/respondents.
iii.
iv.
Observation:
Directly monitoring the employees while performing their job obligations during specific
time period/during a cycle time.
Cycle time: observation is valid if an employees is being observed during Cycle time that is
the time it takes to complete a job/ an activity/ a process from it starts till it ends.
Reactivity Issue: There may be the specific problem in terms of biasness in individuals
behavior due to observation from other parties that may be called as re-activity problem.
Participant Diary/Log:
Employees are provided with a note book or a digital assistant to record each and every
activity performed during their job obligations throughout cycle time. This information is
collected by the supervisors after completion of job and it is used to prepare job
description and specifications after due verifications and authentications.
v.
Multiple Methods:
Using a combination of more than one method to collect information regarding job.
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Job Description
(How to write a job description)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Job identification
Job summary
Duties and responsibilities
Performance and standards
Working relationship/professional relationships
Authority of jobholder
Job context/physical conditions
Helping material ( machines, tools, equipments)
Human requirements.
1. Job identification:
All the information that helps in introducing a specific job and that is used to distinguish one
job from the others.
2. Job Summary:
The assistant HR Manager is responsible to assist the HR Manager in performing HR
activities/personnel activities, recruitment and selection, training and development,
performance evaluation, management, compensation management and managing human
relations.
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4. Performance Standards
The details about specific measures of performance or the standards that are to be maintained
by the job holder as part of his duty.
For example to meet with other employees to identify various issues at least five persons per
day. (At least five persons per day is a standard)
5. Working Relationships
The details about various other parties that are to be contacted by the job holder as part of its
job duty including supervisors, colleagues, subordinates or any other third party.
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8. Helping Material/Machines
The information regarding specific tools, machines or equipments that are to be used within
job
9. Human Requirements
A list of skills and experience, qualifications and abilities and expertise that are required for
the specific job activities/obligations.
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Job Enlargement:
Assigning additional same level duties to an employee other than its formal job descriptions.
Job Rotation:
Continuously and systematically moving an employee from one job place to another to enhance its
understanding about the job and to assess its capabilities regarding various work activities.
Job Enrichment:
All the procedures or arrangements used to develop employees capabilities or to increase their
contribution for the organization may be termed as job enrichment.
For example increase the spam of control
- Assigning decision making authority
- Job rotation to enhance understanding etc.
De-Jobbing:
(To do job informal)
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Effectiveness of Recruitment:
The effectiveness of recruitment efforts is measured in terms of:
Quantity:
What number of applicants applied for the specific job position announced by the
organization? The higher the number of applicants, the recruitment will be considered more
effective.
Quality:
What is the number of eligible candidates who are fulfilling minimum job criteria and who
possess the required skills, expertise and abilities that are included with in job specifications?
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Strategic Recruitment
Recruitment method
Non recruitment issues
Image of firm
Pre-screening
Legal/Ethical Issues
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Sources of Candidates
(1) Internal Sources
(2) External Sources
To identify the sources from where the organization may attract the suitable candidates to apply
for the available job positions.
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1. Job Posting:
Posting a job on the notice board of the organization along with its brief description and
specifications to encourage the employees to apply for those positions. It may include:
(i) Posting job on notice board
(ii) Sending an official email or memo to employees
(iii) Publishing the availability of job on official website
2. Re-hiring:
Re-selection of the employees whose terms and services with the organization have been
expired for another period of time. It includes:
(i) Renewal of contract after its maturity
(ii) Reassignment of projects after they are completed
3. Succession Planning:
The procedure to identify the future human requirements of the organization and to select and
develop current employees to fulfill future requirements.
to identify the future human requirements that what positions may be available/vacant
with the organization.
to select the most suitable employees who are considered to be the appropriate choice
Step (ii)
to
Step (iii)
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(2)
1.
2.
3.
4.
5.
6.
7.
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External Sources
Advertising
Employment Agency
On demand Recruiting Services
Temp Agency
Referrals
Walk-ins
College Recruiting
1. Advertising:
The procedure and practices that are used / adopted by an organization to convey the outsiders
about availability of positions within organization along with a brief description and
specification about the job.
(i) Selection of Media: ( print, electronic, personal advertisement)
The organization should prefer to select the most appropriate channel to convey the
information to the outsiders that may include personal communication,
communication through print resources or electronic resources.
(ii) Construction of Ad/Advertisement:
The organization should be careful while designing advertisement for the job positions
following a four step procedure called AIDA plan.
a. Attention
b. Interest
c. Desire
d. Action
a. Attention:
Anything which can attract our attention for example any model, actor etc.
b. Interest:
Attractive salary, bonus, other facilities etc
c. Desire:
When we will feel interest then there will be a desire for getting that job.
d. Action:
When we will feel a desire for getting a job then we will take an action in the
form of applying for that job.
AIDA Plan
The organizations should try to /consider attracting external candidates by constructuring the most
suitable advertisements that may create the interest of candidates and they would desire to apply for
the job and this desire may be converted into action by providing the necessary contact details,
(telephone, office address, email etc.)
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2. Employment agency:
Various organization either public or private that provide specialized recruitment services to the
organizations to facilitate them during the recruitment and selection procedure and to help them hiring
the most suitable person for the job.
Employment agencies are preferred by the organization if:
(i) The organization does not have occupy the human resource department
(ii) The HR department is not very much effective in hiring the suitable candidates
(iii) It is time and cost effective to consult the employee agency
(iv) The organization failed to conduct recruitment procedures in past
4. Temp Agency:
The outsourcing agency that provides other organizations with temporary workers to work for
various projects and assignments as a member of the hiring organization.
For example a security guard of a security company is working in a bank.
5. Referrals:
The candidate who are recommended by existing/current employees of the organization or
various authentic resources with the basic assumption that good people know good people.
6. Walk-in:
The individuals who tends to show their interest for the organization by applying personally or
electronically even if there are vacant positions within organization or otherwise.
7. College Recruiting:
Attracting and inviting suitable candidates among the graduation classes of a college or
university to find out fresh graduates to fill vacant positions within organization.
(i) College Recruitment:
College recruitment may be done through:
a) On Campus Visit:
The setup where the representatives of the organizations tend to visit the
university campus to attract suitable candidates among students.
(In this type the representatives comes to university)
b) On site visit:
The setup where students are invited to Visit Companys office or
plant/factory to attract them to apply for various positions within organization.
c) Internships:
The specific setup where students are provided with an opportunity to secure
the organization and to perform actual job duties for a limited period of time
to attract them for the permanent employment.
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Tests of investigations
Test: taking the sample of an individuals behavior to predict its future performance.
Tests of investigations
Test: taking the sample of an individuals behavior to predict its future performance.
Type of tests
1.
2.
3.
4.
5.
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for the job. (Person job fit). For examples MAPS, inkblot tests, sentence completion, clouded picture
tests etc.
5. Achievement test:
the type of test that is conducted to identify what an individual has learnt from its past job experience.
For example midterm exams, final exams etc.
Purpose:
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Selection Interview:
Direct interaction between an employee and candidate to determine the suitability of that individual
for job/organization
i.
ii.
iii.
Job understanding:
The interviewers must be appointed who can be considered as subject matter experts and
who are familiar about the requirements of the job, understand the duties and
responsibilities and know about the human specifications required to perform the job
activities.
iv.
v.
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vi.
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Interviewers Behavior:
The interviewer should not facilitate the candidates by providing them positive
impressions or hints regarding the interview contents/questions or by adopting a behavior
that is too much strict or lenient.
Types of Interviews
1. Based on construct
i. Structured interviews
ii. Unstructured interviews
iii. Semi-structured interviews
2. Based on contents
i.
ii.
iii.
iv.
Situational interviews
Behavioral interviews
Stress interviews
Job related interviews
3. Based on settings
i.
ii.
iii.
iv.
v.
vi.
Individual interviews
Panel interviews
Group discussion
Mess interviews
Sequential interviews
Other types
1. Based on Construct:
Classification of an interview o the bases of the structure, or construct whether the type and number of
questions have already been decided or otherwise.
i.
ii.
iii.
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2. Based on contents:
The classification of an interview on the basis of the type of questions that are included with in an
interview (that should be asked from the candidates) is as following:
i.
ii.
iii.
iv.
3. Based on Settings:
The classification of an interview on the bases of style of administration and physical settings in which
the interview is being conducted.
i.
Individual interview:
The setting in which a single interviewer is going to conduct the interviewer for individual
candidates.
ii.
Panel interview:
The interview in which a group of the interviewers is appointed to conduct the interview
for individual candidates. The panel may comprise of:
H.R. Personnel
Experts/Externals
Supervisor/Dept. Head
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iii.
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Group Discussion:
The settings where a group of candidates is assigned with a specific topic to discuss with
each other and they are being evaluated by the interviewer on the bases of their
contribution and the quality of arguments.
iv.
Mass Interview:
The settings where a panel of interviewers is appointed to conduct the interview for more
than one job candidates at the same time.
Mass interview is the combination of panel and group interview.
v.
Sequential Interview:
The settings where a candidate has to go through a series of interviews based on:
a. Time intervals (for example one interview is today, 2nd is after 3 days and so on.)
b. Level of Organization (for example first supervisor will take interview, then manager,
then head of department etc.)
vi.
Other Types:
a.
b.
c.
d.
Computerized interviews
Online Interviews
Distance Interviews
Web-based interviews (with the help of web-cam)
Employment Selection
The process of hiring the right person for the job after careful planning and recruitment and after
applying the most appropriate screening techniques including tests, investigations and interviews.
ii.
Effectiveness/Achievement of Goals:
The organization has to achieve its targets through an effective use of its human resources
so the individuals must be selected who have capabilities and skill to drive the
organization towards the right direction.
iii.
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Negligent Hiring
If the organization fails to select the right person for the job and it becomes harmful for the
organization, the specific condition may be called as negligent hiring.
Negligent hiring may include:
i. Mistakes while employment planning
ii. Errors while recruiting the candidates
iii. Designing and conducting in-appropriate screening tools (tests, investigations, interviews,)
Training People
Employee Orientation:
All the procedures that are adopted to make an employee aware about the organization, its policies and
various other perspectives regarding the job.
Why orientation is important/provided?
i.
To welcome to the employees to the organization.
ii.
To make the employees at ease so they can start the socialization process.
iii.
To make them aware about the organization.
iv.
To provide information about the history/past, present condition and future vision of the
organization.
v.
To inform about the facilities that can be enjoyed by an employee being the member of the
organization.
vi.
To provide awareness regarding rules, regulations and procedures that should be
followed/observed.
vii.
To make them aware about the specific code of conduct or behaviors that is expected from
the employee.
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Training
Teaching employees various skills required to perform their job activities and to develop them
according to the requirements of organization.
Coaching:
The training program that is designed to enhance professional skills of an employee and to
develop its capacity to perform job related tasks.
For example making adjusting entries for an account officer, new product development
training for a marketing executive etc.
Consoling:
The training program that is designed to enhance personal skills of an employee and to
develop its capacity to solve/resolve individual conflicts and emotional problems.
Increase the similarity between the training environment and actual job environment.
Provide time to practice
Explain each part of the machine and each step of process that is under consideration
Explain various critical job factors that should be remembered by the employee. For example
do not use brake at once.
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v. Explain precautionary measures that should be considered while performing job. For example
do not smoke while driving.
Motivation Guidelines:
How to keep employee motivational to the job?
i. Explain the perceived training need to the employee to make them motivated towards the
training program.
ii. Follow the learning by doing technique and involve the employees in to the actual activities
of the job.
iii. The trainer should provide the employees with positive reinforcement, timely feedback and
prompt/immigrate suggestions regarding their job activities.
iv. The trainer should consider the learning capacity of the trainees and allow them to learn the
job according to their own pace/speed of learning.
v. The trainer should observe the schedule of the training program and the training should be
provided during the early hours of the days as the learning tendency/curve decreases
throughout the working day.
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deficiencies and to determine whether this efficiency can be removed through training or
there may be other solution.
Process of Performance Analysis
Step 1:
compare the actual performance with the standards
Step 2:
Identify various performance deficiencies
Step 3:
Design training objectives to remove the deficiency or taking other corrective
actions
2. Instructional Design
The process of deciding about the specific materials, information and contents that should be convey
to the employees, as well as making decisions regarding the methods that should be used to convey the
training information.
Contents of Instructional Design:
Making decisions regarding the specific information that is useful for the employees and that should
be convey them including all the materials, workbooks, exercises, assignments or practical
exposure/experience. For example course contents of a student.
Methods
The specific techniques or physical settings that should be used to convey the training information to
the employees and managing the training contents accordingly.
1. On the Job Training (OJT)
2. Off the Job Training
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Methods of OJT
i.
ii.
iii.
iv.
v.
vi.
Coaching
Rotations
Special Assignment/Action Learning
Job instructions Training
Informal learning
Apprenticeship
i. Coaching:
On the job training method where an individual is assigned to a supervisor or a subject matter
expert to learn various job related skills by taking guidelines and directions and by consulting
in case of various problems.
v. Informal Learning
On job learning where individuals tend to learn various job activities using informal setups
from their colleagues, supervisors or sub-ordinates other then than organization. The
organization may encourage the informal learning within the organization by providing
facilities and support.
vi. Apprenticeship
On the job training technique where an individual is assigned to an expert/craft man to learn
various job related skills by dedicating its time and efforts to achieve the training objectives.
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i.
ii.
iii.
Management Games
Off the job training exercises in which an individual employee or a group of employees tend
to compete with each other regarding various job related practices and to enhance their skills.
a. Role Playing Exercises:
Off the job training exercise that include specific set of activities assigned to an individual
to develop its capabilities for example role of investor
b. Behavior Modeling Exercises:
Various training exercises that are designed to modify the behavior of an employee
according to the requirements of the organization by following various re-enforcements.
iv.
Simulations
Off the job training equipments that are exactly similar to the actual job environment designed
to train the employees for various jobs that are risky in terms of monitory resources, physical
resources or loss of life, for example to jump from a plane, flying etc.
v.
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i.
Reactivity:
The response of employees towards training contents and methods assuming that a
positive word of mouth is the predictor of success of training program.
ii.
Learning:
If the employee acquires new knowledge, skills and abilities due to the implementation of
training program, it may be considered success of that training.
iii.
Behavior:
If an employees on the job behavior has been changed positively after the implementation
of training program, that training may be considered successful.
iv.
Results:
If there is a positive improvement in the operational output of an employee and its
productivity has been increased the training may be considered to be successful/effective.
Negligent Training
If the managers failed to train their employees according to the requirements and training was unable
to achieve its objectives and it may be harmful for the organization, its members and other
stakeholders, this training will be called negligent training.
Negligent training may include:
i.
Wrongful need assessment
ii.
In-appropriate contents and methods
iii.
Errors while validating the training program
iv.
Any other relevant mistakes.
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Appraising People
1. Performance Appraisal
2. Performance Management
1. Performance Appraisal
All the procedures that are designed to compare the actual performance of an employee with
the performance standards and to provide with feedback along with suggestions and reenforcements.
Process of Performance Appraisal
i.
Setting standards
ii.
Compare actual performance with the standards
iii.
Providing feedback along with suggestions and re-enforcements.
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Strategic Appraisal
Quality and quantity
Supervisors Role
Realistic Appraisal
Feedback
i.
Strategic Appraisal:
The management should ensure that an employees performance is contributing towards
achievement of its overall strategy to determine various performance improvements that
are beneficial for the organization.
ii.
iii.
Supervisors Role:
The management should consider involving the immediate supervisor in to the process of
an employees evaluation to make it more reasonable as the supervisor has an exact idea
about an employees performance and its expertise.
iv.
Realistic Appraisal:
The management should be neutral while evaluating the performance of an employee and
they should convey the actual situations of an employees performance including various
efficiencies and deficiencies.
v.
Feedback:
The organization should consider providing timely feedback to the employee along with
suggestions and re-enforcements to make improvements accordingly.
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Appraisal Interview
Satisfactory:
For example to for being passed in exams of a semester there is required 1CGPA but for being
promoted in next semester 2CGPA is required.
Now if a student gets more than 2CGPA, his performance is satisfactory and promotable, but if a
student gets less than 2CGPA but more than 1CGPA, his performance is satisfactory but not
promotable.
Un-Satisfactory:
For example an employee does not show satisfactory performance, and then management will decide
about his performance. If his mistakes are correctable, then they will give him suggestions for
improvement, and if his mistakes are not correctable, then management will ask him bye bye.
Supervisor
Self Rating
Peer Appraisal
Subordinate Feedback
Rating Committee
360 Degree Feedback
i.
Supervisor:
ii.
The type of evaluation where an employee is being evaluated by its immediate supervisor
or the senior authorities considering that the supervisor has an exact idea about an
employees performance, skills, efficiencies and various other aspects. The supervisors
evaluations are most vilely used and considered effective than other methods.
Self Rating: 25-40% bias
The type of evaluation where an individual employee tends to rate its own performance y
using the given criteria as directed by the organization. The self ratings may prove to be
biased as the individuals tend to rate themselves higher than their actual performance.
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iii.
iv.
v.
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vi.
Appraisal Problems
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
i.
Un-clear Standards:
If the standards and targets are not cleared to the employees it may crate various
ambiguities for both the employer and the employees.
ii.
Halo Effect:
If an employer tends to evaluate various individuals on the bases of a few dominant
characteristics of its behavior instead of considering its overall personality and
performance.
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iii.
44
Recency Effect:
Tendency of an evaluator to rate the employees on the basis of considering its overall
performance throughout the evaluation period.
iv.
v.
Leniency:
Tendency of an individual to rate various employees higher than their actual performance
may be called as leniency effect.
vi.
Strictness:
Tendency to rate the employees below than their actual performance may be considered as
the strictness effect.
vii.
Central Tendency:
Tendency of an employer to evaluate the employees on average basis without considering
their actual performance including all the achievements and drawbacks.
viii.
Biasness:
If an employee is being evaluated under the influence of personal demographic
characteristics it may be considered as Bias. The personal characteristics may include
age, gender, social class, religion, race, etc.
For example ( chorro yaar apna aadmi hy.)
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Appraisal Method
The specific proceeds or techniques used by the organization to evaluate the performance of their
employees and to provide them feedback accordingly. It includes two important decisions.
i. What to measure?
ii. How to measure?
Performance Dimensions
The decision regarding specific indicators or characteristics of the job that may be used as the base for
performance evaluation for example quality, job knowledge, time etc.
The performance dimensions may be categorized in to four different types.
i.
General Dimensions
ii.
Specific Dimensions
iii.
Competencies
iv.
Goal Achievement
i.
ii.
Specific Dimensions:
The type of indicators that are not common and that may exist for certain kind of job or
designation. For example marks for students, vouching for an accountant, sales plan for a
marketing officer etc.
iii.
Competencies:
The type of performance indicators through certain employees are evaluated on the bases
of certain job related skills including conflict management skills, customer relation
management skills, using software etc.
iv.
Goal Achievement:
The performance indicator that include the specific qualitative targets that should be
achieved by an employee during the course of its job.
For example meeting 10 customers per hour, attending 30 calls per day etc.
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How to Measure?
Methods for Employees Evaluation
Decision regarding specific methods that should be used for an employees evaluation and to provide
with feedback.
i.
Graphic Rating Scale
ii.
Alternative Ranking Method
iii.
Forced Distribution Method
iv.
Paired Comparison
v.
Critical Incidents Method
vi.
Narrative Forms
vii.
Management by Objectives(MBO)
viii.
Behavioral Anchored Rating Scale (BARS)
i.
Performance
Dimenssions
Quality
Quantity
Job Knowledge
Below 50%
50-75%
75-100%
Target
ii.
Poor
Good
Excellent
Above
Expectation
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iv.
v.
+
+
-
+
+
-
+
+
+
vi.
Narrative Forms
Evaluating the performance of an employee and providing with feedback using the
specifically designed or descriptive documents that include both the performance
evaluation as well as the recommendation.
vii.
Management by Objectives(MBO)
A systematic procedure designed by the organization to identify individual departmental
and organizational objectives and to evaluate the performance of an employee against the
objective.
Step 1: Identify organizational objectives
Step 2: Determine department/group objectives
Step 3: Clarify individual Objectives
Step 4: Evaluation
Step 5: Feed back
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viii.
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Compensating People
All kinds of financial and non-financial benefits offered to an employee in exchange of its services for
the organization.
The employee compensation may include:
i.
Direct Financial Payments
ii.
In-Direct Payments
iii.
Benefits in Kind
iv.
Non-Financial
i.
ii.
In-direct Payments:
All the payments made to third party for whom the benefit is enjoyed by the employee like
insurance, medical treatment fee, etc.
iii.
Benefits in kind:
All the tangibles or facilities offered to an employee to facilitate its job performance and
to encourage its contribution, for example computer, tools and equipments etc.
iv.
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i.
ii.
Increments/Pay Raises:
The permanent increase in basic pay of an employee that becomes a part of its salary
arrangement for the next compensation period. Increments may be offered either on the
bases of superior performance or on the bases of duration of time with in a specific
organizations.
a. Increments based on performance/merit raise
b. Increments based on seniority
iii.
Allowances:
The additional cash amount offered to an employee to adjust individual differences or to
encourage an employee on the bases of certain characteristics. For example entertainment
allowance, traveling allowance, senior post allowance etc.
iv.
v.
Benefits/Fringe Benefits:
The facilitation or support offered to an employee in terms of tangible and non tangible
benefits including member ship of professional organization or sight fitness centers and
residence etc.
vi.
vii.
Commission:
A percentage of sales amount offered to an individual who has contributed its efforts in
making that sale possible.
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i.
Legal Issues:
It includes all the binding and restrictions imposed by the federal or provisional authority
governing the pay rates or various other facilities. For example including minimum wage
rate, overtime pay, paid leave, old age benefits etc.
For example any company cannot pay to its employees less than Rs. 9000 in Pakistan
because of restriction of the government.
ii.
Labor Unions
The compensation decisions may also be effected by the groups of employees within
organization that are formally designed to protect the rights of employees. The labor union
may affect the compensation decision through collective bargaining or using various
other techniques like protest, strike, lock outs, etc
iii.
Company Policy:
The organization may design various policy matters or strategies to compensate their
workers according to their nature of job, skills, or contribution for the organization. The
companys policy may include decision regarding various allowances, benefits or
commission based pay plans etc.
iv.
Equity Issues:
Various factors that are introduced by the competitors or the other organization may also
force the management to design competitive pay plan that is adjustment in pay rate
according to the compensation offered by the other firm. The equity issue is important to
retain the employee within the organization and to reduce employees turnover.
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Employee Incentives
Various ingredients that are offered to an employee as compensation to motivate them for future
performance and to recognize their efforts for the organization.
Employee incentives may be categorized in to two types.
i.
Individual incentives
ii.
Group/organizational incentives
i.
Individual Incentives:
a) Piece work
c) Merit Pay/Raise
b)
d)
Commission
Recognition
(b) Commission:
Additional cash amount offered to the sales person against each unit sold by that individual.
ii.
Group/Organizational Incentives
a. Employee stock ownership program
c. Gain sharing Plan
b.
d.
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