MANAGEMENT INFORMATION SYATEMS

Syllabus
UNIT I : Human Resource Philosophy - Changing
environments of HRM - Strategic human resource
management - Using HRM to attain competitive
advantage - Trends in HRM - Organisation of HR
departments - Line and staff functions - Role of
HR Managers.
UNIT II: Employment planning and forecasting
Recruitment, selection process- SourcesInduction- Orientation & Training - Management
Development -On-the-job and off- the-jobManagement Developments
- Performance appraisal in practice. Managing
careers:Career planning and development Managing promotions and transfers.
Unit III : Establishing Pay plans : Basics of
compensation - factors determining pay rate Statutory benefits - non-statutory (voluntary)
benefits - Labour relations - Industrial relationDiscipline administration - grievances handling managing dismissals and separation.
UNIT IV: Foundations of Information Systems: A
framework for business users - Roles of
Information systems - System concepts Organisation as
a system - Components of Information Systems IS Activities - Types of IS-HRIS: Function, Usage
and Application.
UNIT V: DSS: DSS models and software: The
decision making process - Structured, Semi

Structured and Unstrcutured problems; Managing

Information Technology: Managing Information
Resources and technologies - Security and Ethical
Challenges: IS controls - facility control and
procedural control

References
Gary Dessler, "Human Resource Management",
Seventh edition, Prentice-Hall of India
2. James A O'Brien, "Management Information
Systems", Tata McGraw Hill.
3. VSP Rao, Human Resource Management : Text
and cases, First edition, Excel Books
4. Waman S Jawadekar, "Management Information
System Text and cases", TMH
1.

UNIT 1
HUMAN RESOURCE PHILOSOPHY
INTRODUCTION
UNIT OBJECTIVES
UNIT STRUCTURE
1.0 The Historical Background of Human Resource
Management
1.1 Historical Milestones in HRM Development
1.2 The Difference between HRM and Personnel
Management
1.3 HRM Development and Implementation
Responsibilities
1.4 Philosophy of Human Resources
1.5 Organizational Structures: Concepts and
Formats
1.6 Departmentalization

1.7 Human Resources Manager 1.8 Job

Qualifications
1.9 The Role of a Manager 1.10 Summary
1.11 Answer to Check Your Progress

OBJECTIVES

After studying this unit, you will able to

Know about the terms of MIS
Know about the types and roles
of information
To learn about the impact of MIS

INTRODUCTION
The term "human resource management" has
been commonly used for about the last ten to
fifteen years. Prior to that, the field was generally
known as "personnel administration." The name
change is not merely cosmetics.
Personnel administration, which emerged as a
clearly defined field
by the 1920s (at least in the US), was largely
concerned the technical aspects of hiring,
evaluating, training, and compensating employees
and was very much of "staff" function in most
organizations. The field did not normally focus on
the relationship of disparate employment
practices on overall organizational performance or
on the systematic relationships among such
practices. The field also lacked a unifying
paradigm.
HRM developed in response to the substantial
increase in competitive pressures American
business organizations began experiencing by the

late 1970s as a result of such factors as

globalization, deregulation, and rapid
technological
change. These pressures gave rise to an
enhanced concern on the part of firms to engage
in strategic planning- -a process of anticipating
future changes in the environment conditions (the
nature as well as level of the market) and aligning
the various components of the organization in
such a way as to promote organizational
effectiveness.
Human resource management (HRM), also called
personnel management, consists of all the
activities undertaken by an enterprise to ensure
the effective utilization of employees toward the
attainment of individual, group, and
organizational goals. An organization's HRM
function
focuses on the people side of management. It
consists of practices that help the organization to
deal effectively with its people during the various
phases of the employment cycle, including prehire, staffing, and post-hire. The pre-hire phase
involves planning practices. The organization
must decide what types of job openings will exist
in the upcoming period and determine the
necessary qualifications for performing these
jobs. During the hire phase, the organization
selects its employees. Selection practices include
recruiting applicants, assessing their
qualifications, and

ultimately selecting those who are deemed to be

the most qualified.
Human resource management has changed in
name various times throughout history. The name
change was mainly due to the change in social
and economic activities throughout history.

Industrial Welfare

Industrial welfare was the first form of human

resource management (HRM). In 1833 the
factories act stated that there should be male
factory inspectors. In 1878

1.0

The Historical background Human Resource

Management
legislation was passed to regulate the hours of
work for children and women by having a 60 hour
week. During this time trade unions started to be
formed. In 1868 the 1st trade union conference
was held. This was the start of collective
bargaining. In 1913 the number of industrial
welfare workers had grown so a conference
organized by Seebohm Rowntree was held. The
welfare workers association was formed later
changed to Chartered Institute of Personnel and
Development.

Recruitment and Selection

It all started when Mary Wood was asked to start

engaging girls during
the 1st world war. In the 1st world war personnel
development increased due to government
initiatives to encourage the best use of people. In

1916 it became compulsory to have a welfare

worker in explosive factories and was encouraged
in munitions factories. A lot of work was done in
this field by the army forces. The armed forces
focused on how to test abilities and IQ along with
other research in human factors at work. In 1921
the national institute of psychologists established
and published results of studies on selection
tests, interviewing techniques and training
methods. Recruitment and Selection
It all started when Mary Wood was asked to start
engaging girls during the 1st world war. In the 1st
world war personnel development increased due
to government initiatives to encourage the best
use of people. In 1916 it became compulsory to
have a welfare worker in explosive factories and
was encouraged in munitions factories.
A lot of work was done in this field by the army
forces. The armed forces focused on how to test
abilities and IQ along with other research in
human factors at work. In 1921 the
national institute of psychologists established and
published results of studies on selection tests,
interviewing techniques and training methods.

Acquisition of other Personnel

Activities

During the 2nd world war the focus was on

recruitment and selection and later on training;
improving morale and motivation; discipline;
health and safety; joint consultation and wage
policies. This meant that a personnel department

had to be established with trained staff.

Industrial Relations
Consultation between management and the
workforce spread during the war. This meant that
personnel departments became responsible for its
organization and administration. Health and
safety and the need for specialists became the
focus. The need for specialists to deal with
industrial relations was recognized so that the
personnel manager became as spokesman for the
organization when discussions where held with
trade unions/shop stewards. In the 1970's
industrial relations was very important. The
heated climate during this period reinforced the
importance of a specialist role in industrial
relations negotiation. The personnel
manager had the authority to negotiate deals
about pay and other collective issues.

Legislation
In the 1970's employment legislation increased
and the personnel function took the role of the
specialist advisor ensuring that managers do not
violate the law and that cases did not end up in
industrial tribunals.

Information Technology

Some systems where IT helps HRM are: Systems

for e-recruitment; On- line short-listing of
applicants; Developing training strategies online; Psychometric training; Payroll
systems; Employment data; Recruitment

administration; References; Pre-employment

checks. IT helps HR managers offload routine
tasks which will give them more time in solving
complex tasks. IT also ensures that a greater
amount of information is available to make
decisions.
Table 1 identifies some of the major milestones in
the historical development of HRM. Frederick
Taylor, known as the father of scientific
management, played a significant role in the
development of

1.1

Historical milestones in HRM development

the personnel function in the early 1900s. In his
book, Shop Management, Taylor advocated the
"scientific" selection and training of workers. He
also pioneered incentive systems that rewarded
workers for meeting and/or exceeding
performance standards. Although Taylor's focus
primarily was on optimizing efficiency in
manufacturing environments, his principles laid
the ground-work for future HRM development. As
Taylor was developing his ideas about scientific
management, other pioneers were working on
applying the principles of psychology to the
recruitment, selection, and training
of workers. The development of the field of
industrial psychology and its application to the
workplace came to fruition during World War I, as
early vocational and employment-related testing
was used to assign military recruits to appropriate

functions.
The Hawthorne Studies, which were conducted in
the 1920s and 1930s at Western Electric, sparked
an increased emphasis on the social and informal
aspects of the workplace. Interpretations of the
studies emphasized relations" and the link
between worker satisfaction and productivity. The
passage of the Wagner Act in 1935 contributed to
a major increase in the number of
unionized workers. In the 1940s and 1950s,
collective bargaining led to a tremendous increase
in benefits offered to workers. The personnel
function evolved to cope with labor relations,
collective bargaining, and a more complex
compensation and benefits environment.
The human relations philosophy and HRM was
revolutionized in the 1960s by passage of Title VII
of the Civil Rights Act and other antidiscrimination legislationas well as presidential
executive orders that required many
organizations to undertake affirmative action in
order to remedy past discriminatory practices.
Equal employment
opportunity and affirmative action mandates
greatly complicated the HRM function, but also
enhanced its importance in modern organizations.
As discussed more fully in a later section, these
responsibilities continue to comprise a major part
of the HRM job. Finally, changes in labor force
demographics, technology, and globalization since
the 1980s have had a major impact on the HRM

function. These factors also are discussed in more

detail in a later section.
Table1: Milestones in the Development of Human Resource
Management

1890-1910
Frederick Taylor develops his ideas on scientific management. Taylor
advocates scientific selection of workers based on qualifications and also
argues for incentive-based compensation systems to motivate employees.
1910-1930
Many companies establish departments devoted to maintaining the welfare of
workers. The discipline of industrial psychology begins to develop. Industrial
psychology, along with the advent of World War I, leads to advancements in
employment testing and selection.
1930-1945
The interpretation of the Hawthorne Studies' begins to have an impact on
management thought and practice. Greater emphasis is placed on the social
and informal aspects of the workplace affecting worker productivity.
Increasing the job satisfaction of workers is cited as a means to increase
their productivity.
1945-1965
In the U.S., a tremendous surge in union membership between 1935 and
1950 leads to a greater emphasis on collective bargaining
and labor
personnel
Compensation and benefits administration also increase in importance as
unions negotiate paid vacations, paid holidays, and insurance coverage.
relations within management.
1965-1985
The Civil Rights movement in the U.S. reaches its apex with
passage of the Civil Rights Act of 1964. The personnel function is
dramatically affected by Title VII of the CRA, which prohibits discrimination
on the basis of race, color, sex, religion, and national origin. In the years
following the passage of the CRA, equal employment opportunity and
affirmative action become key human resource management responsibilities.
1985
Three trends dramatically impact HRM. The first is the increasing diversity of
the labor force, in terms of age, gender, race, and ethnicity. HRM concerns
evolve from EEO and affirmative action to "managing diversity." A second
trend is the globalization of business and the accompanying technological
revolution. These factors have led to dramatic changes in transportation,
communication, and labor
markets. The third trend, which is related to the first two, is the focus on
HRM as a "strategic" function. HRM concerns and concepts must be
integrated into the overall strategic planning of the firm in order to cope with
rapid change, intense competition, and pressure for increased efficiency.

1.2

The difference between HRM and Personnel

Management
Some experts assert that there is no difference
between human resources and personnel
management . They state that the two terms can
be used interchangeably, with no difference in
meaning. In fact, the terms are often used
interchangeably in help- wanted ads and job
description.
For those who recognize a difference between
personnel management and human resources,
the difference can be described as philosophical.
Personnel management is more administrative in
nature, dealing with payroll, complying with
employment law, and handling related tasks.
Human resources, on the other hand, is
responsible for managing a workforce as one of
the primary resources that contributes to the
success of an organization.
When a difference between personnel
management and human resources is recognized,
human resources is described as much broader in
scope than personnel management. Human
resources is said to incorporate and evelop
personnel management tasks, while seeking to
create and develop teams of workers for the
benefit of the organization. A primary goal of
human resources is to enable employees to work
to a maximum level of efficiency.
Personnel management can include administrative

tasks that are both traditional and routine. It can

be described as reactive, providing a response to
demands and concerns as they are presented. By
contrast, human resources involves ongoing
strategies to manage and develop an
organization's workforce. It is proactive, as it
involves the
continuous development of functions and policies
for the purposes of improving a company's
workforce
Personnel management is often considered an
independent function of an organization. Human
resource management, on the other hand, tends
to be an integral part of overall company function.
Personnel management is typically the sole
responsibility of an organization's personnel
department
With human resources, all of an organization's
managers are often involved in some manner, and
a chief goal may be to have managers of various
departments develop the
skills necessary to handle personnel- related
tasks.
As far as motivators are concerned, personnel
management typically seeks to motivate
employees with such things as compensation,
bonuses, rewards, and the simplification of work
responsibilities. From the personnel management
point of view, employee satisfaction provides the
motivation necessary to improve job
performance. The opposite is true of human

resources. Human resource management holds

that improved performance leads to employee
satisfaction. With human resources, work groups,
effective strategies for meeting challenges,
and job creativity are seen as the primary
motivators.
When looking for a job in personnel management
or human resources, it is important to realize that
many companies use the terms interchangeably.
If you are offered a job as a personnel manager ,
you may be required to perform the same duties
as a human resource manager, and vice versa. In
some companies, a distinction is made, but the
difference is very subtle.
While most firms have a human resources or
personnel department

1.3

HRM development and Implementation

Responsibilities
that develops and implements HRM practices,
responsibility lies with both HR professionals and
line managers. The interplay between managers
and HR professionals leads to effective HRM
practices. For example, consider performance
appraisals. The success of a firm's performance
appraisal system depends on the ability of both
parties to do their jobs correctly. HR professionals
develop the system, while managers provide the
actual performance evaluations.
The nature of these roles varies from company to
company, depending primarily on the size of the

organization. This discussion assumes a large

company with a
sizable HRM department. However, in smaller
companies without large HRM departments, line
managers must assume an even larger role in
effective HRM practices.
HR professionals typically assume the following
four areas of responsibility: establishing HRM
policies and procedures, developing/choosing
HRM methods, monitoring/evaluating HRM
practices, and advising/ assisting managers on
HRM-related matters. HR professionals typically
decide (subject to upper- management approval)
what procedures to follow when implementing an
HRM practice. For example, HR professionals may
decide that the selection process should include
having all candidates (1) complete an application,
(2) take an employment test, and then (3) be
interviewed by an HR professional and line
manager.
Usually the HR professionals develop or choose
specific methods to implement a firm's HRM
practices. For instance, in selection the HR
professional may construct the application blank,
develop a structured interview guide, or choose
an employment test. HR professionals also must
ensure that the firm's HRM practices are properly
implemented. This responsibility involves both
evaluating and
monitoring. For example, HR professionals may
evaluate the usefulness of employment tests, the

success of training programs, and the cost

effectiveness of HRM outcomes such as selection,
turnover, and recruiting. They also may monitor
records to ensure that performance appraisals
have been properly completed.

The Performance Process

The Performance Process is a comprehensive
approach to staff supervision/coaching. Each of
the following steps is vital to the overall success
of both you as the
supervisor/coach and your staff member(s)/team
1. Performance Planning: the creation of the
position description and performance
expectations/standards
2. Performance Management:
counselling and throughout the period
3. Performance
preparing for and conducting the formal review.
4. Reward Process: determining actual merit
awards based on performance
coaching performance
Appraisal:
5. Performance Planning: And following up with
a review of the position description and reevaluation of performance expectations/standards
for the upcoming year
This process applies to both teams (a group of
staff members assigned to work on and complete
a project) as well as the individual staff member.
The same guidelines for assigning, ensuring
understanding, and providing follow-up of

projects should be used with both the team and

the individual staff member.

Performance Planning

There are two key elements which are essential to

ensuring effective communication of expectations.
These are: accurate and current position
descriptions and ongoing two-way communication
between the supervisor and the staff member.

Position Descriptions
Position descriptions form the foundation for
several important areas of human resource
management including:
Planning: Position descriptions outline the
responsibilities and objectives of a work unit to
individual positions. They can
help managers pinpoint staffing gaps or identify
over-staffing. They are valuable in making
decisions about realigning or changing
organizational structures.
Recruiting and screening: Accurate position
descriptions provide the basic information about
open positions which is required to make a good
match between the candidate's qualifications and
the job's demands.
Orientation: Giving a newly hired staff member
a position description to review, and then sitting
down and discussing it
together, serves as an introduction to the job and
provides a framework for performance
expectations.
Training and

Well-written
descriptions
education, experience, and skills required. They
can help staff members pinpoint their own growth
areas, and help supervisors tailor appropriate
training programs.
Career ladders: Accurate position descriptions
are a tool in developing upward mobility
programs. A study of position descriptions can
reveal the
development: position identify the
relationships among certain jobs and the
knowledge and skills needed to advance from one
job to another.
Position classification: Position descriptions
make it possible to identify job elements, factors
and levels, which in turn make job classification
easier.
Performance appraisal: Position descriptions
provide the link between the job and appropriate
performance expectations. These performance
expectations are a critical factor in evaluating
staff members' performance, determining merit
pay increases and evaluating possible readiness
for promotion.
A position description should give a clear picture
of a position. It should provide enough detail to
accurately communicate the key responsibilities of
the position. In deciding which duties and
responsibilities will be delegated to individual
positions, the supervisor should consider the

overall design of the job and the skills and

motivations of staff members.
Descriptions should be reviewed, by the staff
member and supervisor, and revised as necessary
prior to the start of the performance evaluation
cycle. Descriptions serve as the primary tool for
building a common understanding of job
responsibilities and as the starting point for
developing performance objectives and standards.
The supervisor should encourage staff member
input in the process to help build staff member
commitment to the job and performance level.
The performance expectations (standards) for
each of the functions/ areas of responsibility
should be realistic and measurable.

Developing Goals/Objectives
Clear performance goals make the performance
appraisal process much easier for both managers
and staff members. They enable supervisors to
focus directly on job performance rather than
personality. Staff members and supervisors
routinely develop informal performance
expectations in answering the questions, "How do
we know the job has been done right?" or "How
do we measure success?" Clarifying and
communicating these standards by putting them
in writing fosters mutual understanding and
acceptance.

Pre-Planning

Identify the purpose(s) of

the position. This (these) become(s) the

performance goal.
Examine benefits to be
gained, both by organization and by the staff
member .
Present the goal to the staff member, and then
mutually write the development plan to attain the
goal.

Writing the Development Plan

Write the goal statement to indicate what is to

be attained and any skills to be
the
developed by the staff member .
List the action plans to accomplish the goal.
Main steps to follow.
Target dates for each
step as appropriate.
Indicate checkpoints for review as needed.
Define how you will measure progress.
The method for measuring progress will vary
depending on the type of assignment given.
Assignments given to management or
professional staff members usually require more
general results-oriented
measurements, while support staff may be more
appropriately measured using factors that are
concerned with both process and end product.

Follow these Steps for Management

and Professional Staff
Describe assignment to
Purpose and objectives

be done

Results expected
As needed, overview of what's involved
Make sure individual clearly understands what
you want.
Define Parameters Budget
Timeliness
Kind of feedback or
information you need
Establish checkpoints for review of progress
Provide resources for support Budget
Materials
Access Staff
Training as needed
ALSO, inform others who
need to know
Provide feedback and positive reinforcement for
what was done well.
NOTE: Stress results to be accomplished
rather than how to do assignment
Follow these steps for Program
Implementers and Clerical Staff:
Describe assignment to be done
Method - How to do
assignment
Purpose of assignment - How it fits into the
larger goal
Verify person understands assignment
Define Parameters Quality
Quantity
When due (reasonable)
Provide resources for support

Materials
Equipment
Training
Help if needed
ALSO, inform others who need to know
Provide feedback and positive reinforcement for
what was done well.

Definitions of Performance
Expectations:
They should be clear, brief, attainable, and
measurable, and can be expressed in terms
of:

Quality
how well work must be done in terms of accuracy, appearance completeness,
thoroughness, precision, and compliance with professional standards which
may have been established for an occupation
how much work must be completed within a given time period.
Quantity
Timeliness
when, how soon, within what time period work must be done
assess the cost/benefits or use of resources such as money, equipment
personnel, time
Effective use of Resources
describes specific behaviors that have an impact on put comes such as
cooperation and Courtesy (sometimes inappropriately referred To as
attitude)
Manner of Performance
used if there are rules regarding the methods and procedures which must be
used to to accomplish assignments
Method of Performing Work

Avoid unrealistic goals

The following guidelines should be considered
when writing performance goals with the staff
member:
Use specific examples of behaviors and of the
desired results.
Avoid using evaluative terms which do not

describe behaviors and/or outcomes, such as

"good work" and "bad attitude."
Be wary of using terms such as "always" and
"never." It may not be realistic to expect that a
staff member will always perform perfectly and
will never make a mistake.
Avoid using numbers in goals unless you
actually intend to
count the attendance, quantities)
Consider the
gathering information about performance. As with
any other type of information - it costs time and
money to gather and maintain.
behavior (e.g. production
cost/benefit of
Build performance goals which can identify
performance above the base line of expected
performance. Staff members want to know how to
receive a performance rating which is better than
"meets expectations."
Methods of verifying performance
should be determined at the start of the
evaluation period and discussed with the staff
member. These may include:
Direct observation
Reports of others' observations
Written records such as attendance, financial,
assignment logs, and status reports
Results in the form of tangible products
Record performance: To develop a reliable
record of events, it is recommended that the

supervisor keep informal notes regarding specific

performance events throughout the evaluation
period. The staff member should be informed in
advance that samples of performance will be
recorded. Listed below are some guidelines to
follow:
Record objective facts concerning actual
performance as they occur
Record only job-related performance, rather
than making evaluative statements describing an
individual
Do not try to record every event; rather, select a
representative sample of performance in key
areas of responsibility
Cross validate reports from others
Record both positive and negative performance
Maintain records on all staff members - not just
those that fall in the extremes

Counseling and Coaching

A key part of a manager's job is to manage the

performance of your people, for that is what
produces the results for which you are held
accountable. The most successful managers act
as coaches. A manager as a coach/mentor is one
who provides direction, guidance, and support in
leading one's team and each individual in the
accomplishment of goals. Also a coach/mentor is
someone who works to develop and maximize
one's human resources to the fullest to achieve
positive results.

Effectiveness in a manager as coach

role requires:
Exercising assertiveness
Managing people as individuals
Being results oriented
Building working relationships
Multiplying your effectiveness through others
Motivation is another critical area of expertise
that a manager can use to help his/her teams
achieve its fullest potential.
Definitions of motivation:
Something that causes or
influences a person to act or
perform.
For management, it is the
creating of conditions that
allow a person to achieve a highly productive
level of performance.
Some tips about motivation:
Motivation works best when its focus is on
enhancing and sustaining performance.
Behavior that is rewarded is repeated.
A manager's own behavior can have a great
influence on staff member behavior and can help
positively motivate performance.
The more you know your staff, their needs and
desires related to their work and job
performance, the more
you will understand what motivates them.
On-going coaching often involves more guidance
than direct instruction. The idea behind this
guidance is to develop staff members to think for

themselves especially in solving problems and

making decisions. Below are some suggestions on
how to coach through guidance.
Share knowledge and experience
Share feedback and observations
Use questioning to stimulate their thinking and
facilitate by listening
Encourage brainstorming
Ask for their plans to address issues and resolve
problems
Explore options and consequences together
Give picture of results expected
Give assignments that provide opportunity to
learn through experience

Avoid

Telling them how to do their jobs

Providing (and as a result,
imposing) solutions to them
Making decisions they could make themselves
Giving frequent advice
Criticizing
Another important aspect to providing on-going
coaching and counseling is to identify and correct
problems as they occur. In this way issues can be
resolved while they are fresh in everyone's mind
and before they become worse problems.

Some questions you should consider

when identifying and correcting
problems are:

When does the problem occur? During a

particular work process, at the same time each

day, or same day each week, etc., or when
certain conditions exist? When/where does the
problem not exist?
Does the job cause the performance problem
because the tasks are not compatible?
Are the procedures clear and correct?
Are adequate resources (tools, time, money,
information, and staff) available to do the job
effectively?
What is the magnitude of the problem in terms
of quality, service, safety, image, quality, and
resources?
Anticipate the staff member's reactions to the
points to be
made. What constructive suggestions can be
made?

The Annual Performance

Review
A formal performance review must be conducted
each year consisting of discussion(s) between the
supervisor and the staff member and a written
record of the appraisal. Discussions should occur
more frequently if needed, such as when changes
in the job require the assignment of new
responsibilities, when new objectives are
developed, or if the staff member requires a more
structured approach in order to encourage
improved performance. The content of the
formal appraisal discussion
should not be a surprise to either party!

Criteria for Assignment of Overall

Performance Rating

Exceeds Job Expectation

This staff member's performance is superior and

consistently exceeds the requirements of the job.
This exemplary high performance level is also
seen in demanding situations and circumstances.
He/she excels in the accomplishment of all
responsibilities, tasks, and objectives, having
performed with the utmost excellence in each and
all objectives of job performance on a
sustained basis. He or she is widely recognized as
an expert because of his or her own exceptional
knowledge and authority.
The decisions and recommendations of this
person are sound and they are frequently related
to the highest priority and most complex aspect
of the position's responsibilities.
This staff member demonstrates a thorough
understanding of the job, frequently perceives
aspects of the position which are seldom
perceived by others, and initiates, plans for, and
accomplishes many innovative and valuable
objectives for the unit/ department/University.
Use of this
rating category should be used sparingly to avoid
reducing the value of the next rating below.

Meets Job Expectation

The performance of this staff member fully meets

the standards and requirements of the job. This
staff member's performance is satisfactory and

exceeds the requirements of the job in one or

more areas and meets the requirements of the
job in all other areas. This is a consistently
competent performer. It is important to keep in
mind that meets job expectations is the
standard and most employees performance will
fall into this category.
The performance of the high priority and most
complex responsibilities is accomplished with
competence and thoroughness. The staff member
is steady, reliable, and competent, and work is
accomplished with a minimum of supervision.
The decisions and recommendations of this
person are usually sound and are related o
important and structured areas of the position's
responsibilities.
The staff member usually takes initiative and
accomplishes worthwhile objectives on behalf of
the unit/department/University.

Partially Meets Job

Expectations
The partially meets job expectations rating is for
those aspects of performance which may require
some additional training and development or for
performance in certain areas that is not
consistent. Staff member shows capability, but in
a variable manner.
Either performance of job functions is lacking or
for the staff member to maintain job performance
level and achieve the desired position objectives,
regular mentoring and coaching is necessary in

the under- achieved areas of the job.

This staff member may occasionally originate
worthwhile objectives but also fail to meet all of
the objectives of this position which are
established by performance standards. Although
the staff member's performance is not considered
completely unacceptable, there is room for
improvement of work performance.

Does Not Meet Job Expectations

Performance consistently does not meet the

requirements and acceptable standards of the
position.
This staff member's performance is below the
normal expectations for a
substantial number of the aspects of the job.
Portions of the job expectations/objectives are
either not met or are met only with a minimum
level of acceptability.
The decisions and recommendations of this staff
member are often not sound, and when
undertaken, are usually in the routine or
structured areas of the job, and may negatively
impact organizational or operational objectives.
There is a clear need to make a concentrated
effort to improve the staff member's
performance. The staff member may need
additional training or is not capable of assuming
responsibilities necessary to attain minimum
standards. If performance does not improve in a
reasonable period of time, Labor Relations should
be consulted for formal action.

Guidelines for Building a Complete

and Fair Appraisal
Frequent Communication
Planned frequent communication and feedback
on job performance helps overcome fear during
the actual formal performance appraisal session.

Judge Your Own Performance

Evaluate your own performance before you
evaluate the staff member's performance. Are
you responsible for their good or bad
performance?

Warm-Up Period
Take the time to develop rapport and discuss the
advantages of an appraisal.
Review the information on hand to measure the
staff member's performance.

Be Candid & Be Specific

Candidly get right to the point in discussing a
staff member's performance on the job. Honesty
and candor will result in a big payoff for you and
the staff member .

Build on Strengths
This approach enables the staff member to work
toward their greatest potential.
The staff member must use their strengths to
accomplish a job;
they cannot use their weaknesses.

Be a Positive Listener

Listen attentively. Non-verbal communication

often says more than words.

Judge Performance - Not the Person

Judge a staff member's performance and
results. Don't judge personality or personal traits.

Avoid Evaluation Errors

Though supervisors try to be objective in
evaluating staff members' performance, personal
biases manifest themselves in the use of
performance rating scales. These are often
referred to as rating errors and include:

Halo Error

Managers tend to generalize from one aspect of a

person's performance to other aspects of it,
causing a halo error. If a staff member performs
very well in one area of the job, the manager may
rate the overall performance as outstanding
(Performance Level 5) even though performance
in other areas is not at this level.
The manager may rate the overall performance as
outstanding (Performance Level 5) even though
performance in other areas is not at this level.

Regency Error

Recency error occurs when the rating is based

mainly on performance near the end of the review
period, positively or negatively. The rating in this
case may not accurately reflect the entire job
performance.

Contrast Error
Contrast error occurs when a manager rates two
or more staff members who differ substantially in

level of performance. For example, a staff

member who is performing at a competent level
(Performance Level 3) may, in comparison, with a
marginal staff member, be rated Performance
Level 5. This error could
work in the opposite direction: the competent
staff member may be rated at below standards
(Performance Level 2) because of the contrast
with a distinguished level of performance.

Constancy Error
This occurs when managers use only a portion of
the rating scale in accordance with their own set
of performance standards. Lenient raters
concentrate their ratings at the top end of the
scale. Other raters show a central tendency error,
believing no one is really unacceptable or
outstanding, and therefore never using these
extreme
ratings though they may be applicable.

Morale Building Error

This error occurs when managers give above

standards ratings (Performance Level 4 or 5) to
increase the morale or to avoid causing low
morale when performance does not justify it.
Meeting standards of the job should not imply a
negative rating or "average" performance. It
should indicate that the staff member did the job
as expected of him or her as established at the
beginning of the review period.

Generosity Error

This occurs when managers give above standards

ratings (Performance Level 5) to increase the
amount of merit increase to be granted. It is not
fair to the staff member or other staff members
and it creates a level of expectation for future
performance ratings.

Planning the Appraisal Discussion

The guidelines below are provided to help

supervisors develop their own approach and style.

Getting Prepared

Identify the main points of the review and

discussion. What must be said and what
conclusions must be reached?
Be aware of the staff member's past experience,
education, work history, and other related
information. Review the staff member's strengths
and weaknesses, and any circumstances that may
have contributed to the performance.
Review notes from the last appraisal discussion,
particularly with respect to the Future Plans and
Development section.
Review the job description and performance
standards, noting
any changes which should be made, and establish
preliminary performance standards for the new
rating period.
What is the difference between what was
expected and what has occurred?
What facts, records, and events are available to
support the evaluation?

Setting the Stage

Prepare notes to help guide the discussion.
Schedule an appointment with the staff member
in advance.
Suggest the staff member prepare a list of
accomplishments, strengths and weaknesses.
Arrange for a suitable meeting place where it is
quiet, relaxed, and private.
Review all materials and information gathered.
Bring a "draft" not a final copy of the
Performance Appraisal.

Conducting the Appraisal

Session

Conducting the discussion is the critical step. It

can have an important bearing on future
relationships and
will profoundly influence a supervisor's ability to
motivate future performance. The following are
guidelines provided to help supervisors develop
their own style and methods

Setting the Tone of the

Discussion
Clearly state the purpose of the meeting and
explain the ground rules and the process. Tell
staff member what can come out of meeting,
including future assignments, clear
communication, and increased duties. Minimize
the negative connotations of "evaluation,"
"rating," and "records of evidence."
Help the staff member feel at ease and

receptive.

Communicating Information
Explain and discuss the Performance Appraisal
form
Avoid making the rating form and specific
ratings the principal issue of the discussion
Avoid criticism of personality or personal traits
Use hypothetical questions to help staff member
search out underlying problems and solutions
Don't cross-examine; allow staff member to
speak (voicing
opinions and feelings; making plans for selfimprovement; discussing job-related problems)
List disagreements, don't gloss over them; use
listening skills to separate facts from opinions and
to shift from details to major points or problems
Explain ratings proposed for each of the staff
member's key
responsibilities; examples
Come prepared understandable
statements which express expectations
concerning future changes in performance; agree
on process to monitor areas
cite specific
with clear, (written)
requiring change with on-going and specific
target-dated reviews (Areas for Improvement
section)
Be prepared to make development commitments
which are appropriate and feasible to support
necessary changes in behavior; discuss plans for

staff member's self-development and how these

relate to performance expectations (Future Plans
and Development Activities section)
As appropriate, discuss advancement
opportunities and how the staff member can
achieve career goals; include in this discussion
the specific knowledge, skills, and
experience the staff member must acquire in
order to advance; agree on specific methods for
acquiring them (Future Plans and Development
Activities section)
To establish a new position description for the
next evaluation period, arrive at mutually
agreeable modifications, additions or deletions in
the staff member's responsibilities and related
objectives.

Closing the Appraisal Discussion

It is important to conclude the discussion on a

positive note.
Discuss plans to build on strengths and correct
weaknesses to enhance future performance
Conclude with a summary of the main points of
the discussion
Inform the staff member of the option to
respond to the appraisal in the "Employee
Comments and Recommendations" section
Have staff member sign the form if he/she does
not wish to add any comments; OR set a mutually
agreeable date for
signing the final form,
incorporating any changes, and including any

comments made by the staff member.

Supervisor's Self Evaluation

After the interview process has been completed,
consider the following:
Did things go well/poorly? Why?
What topics were handled
successfully/unsuccessfully?
What subjects aroused the staff member's
interest and involvement?
Were all important points thoroughly discussed?
What remains as unfinished business?
What points should be raised at the next
meeting?
What performance should be monitored in the
future?
What...objectives should be set? ...skills should
be developed?
Is the staff member a possible candidate for
promotion?

DO'S & DON'TS PERFORMANCE APPRAISAL

OF THE

YOU SHOULD DO THE FOLLOWING:

Reassure your staff member by building on
strengths, give him/ her confidence.
2. Use a "we" approach when discussing
problems.
3. Be specific when discussing performance
4. Keep the interview on track
5. Draw him/her out by: Asking thought-provoking
questions (not yes or no type), then listen.
Restate or reflect the staff member's statements.
1.

Listen with warmth, frankness, and real interest.

6. Talk about job results, not activities.
7. Function as a coach, not as inspector . Counsel
-- don't advise.
8. Close properly: Summarize, plan for
improvements and changes. Write down the
result

BUT DON'T
Use negative words or too many negative
criticisms
2. Use a "you vs. me" approach.
3. Give insincere or excessive
praise.
4. Use generalities that cannot be backed up by
specific examples.
5. Dominate the conversation.
6. Place emphasis on personality
traits.
7. Be fussy, picayune or harried.
8. Be or seem hurried.
1.

The Performance Appraisal

Reward Process
Both financial and non-financial rewards are
needed for a merit pay program to work
effectively. It is important to remember that staff
members also need and seek out: feelings of selfworth, recognition, challenge, responsibility,
independence, status, security, growth, and
advancement. Pay for performance becomes a
motivational tool only when it is used as one

component of the total appraisal- reward system.

The Merit Pay Decision

There are three factors that are used to

determine the actual amount of the merit award.
These three factors are:
1. The amount of money available to be
distributed as part of the merit process. This
pool of money is determined based on the
allocation provided for staff salaries as part of the
State budget.
2. The number of employees that are rated at
each performance level. Once all of the
performance evaluation decisions are forwarded
to Oakland, a
calculation is done to ensure that all of the merit
pool of money is distributed to all eligible
employees. Based on this calculation a %
increase is assigned to each performance level.
3. The performance rating received by the
employee. The individual employee then receives
the percent increase that is aligned to his/her
performance level.

Communicating Merit
Increase Decisions

When the supervisor informs the staff member of

his/her new salary, the supervisor should
also communicate the reasons for the salary
decision. The staff member should already be
aware of the link between performance and pay,
and the general criteria used to make decisions.

However, this information can be reviewed to

provide a context for the salary decision.
Generally staff members are satisfied with salary
decisions when they believe that the decision was
made objectively and that their salary is equitable
in relation to the salaries of other staff members.
Regardless of the amount of money available for
merit
increases, staff members will be motivated to
continue to perform if the basis for salary
decisions is clearly communicated and other
important forms of reward, such as positive
feedback, continue to be available.
Before we begin to consider the concepts, tools,
and skills involved in Human Resource
Management, it is essential to critically examine
the underlying philosophy which influences our
perceptions of people and the assumptions
implicit in our thinking. Over 40 years ago, a
social

1.4

Philosophy of Human Resources

scientist, Douglas McGregor in his ground
breaking book, The Human Side of Enterprise,
challenged us to examine such assumptions or
beliefs about human nature and differences.
Some of his threshold assertions were:
Every managerial act rests on theory.
Conventional management thinking focuses on
control and the notion that authority is the
central, indispensable means of control.

Influence and persuasion can be equally

effective means of social control.
Behind every managerial decision or action are
assumptions about human nature and behavior.
THEORY X: The assumptions implicit in the
traditional management philosophy of direction
and control are referred to as Theory X by
McGregor and are:
The average human being has an inherent
dislike of work and will avoid if he/she can.
Because of this human characteristic of dislike of
work, most people must be coerced, controlled,
directed, threatened with punishment to get them
to
put forth adequate effort toward the achievement
of organizational objectives.
The average human being prefers to be
directed, wishes to avoid responsibility, has
relatively little ambition, wants security above all.
The above assumptions reflect a more general
assumption about the mediocrity of the masses.
Essentially, people cannot be trusted to act
responsibly and will likely take advantage of
situations with few controls to enhance their own
self interest. (Added by SJM)
Such largely negative assumptions about people
may be reinforced by philosophical, political, and
religious belief systems which view human nature
in a negative light, e.g., man is inherently evil or
sinful or the human condition is ultimately
hopeless.

McGregor, however, challenged such assumptions

based on social science theory and research, and
offered a more positive view of people. He
asserted a radically different set of assumptions
which challenged prevailing management theory,
theory which continues to be reflected in
management practices today.
THEORY Y: The assumptions implicit in the
modern management theory of influence,
empowerment, team performance, and high
performance organizations are referred to as
Theory Y by McGregor and are:
The expenditure of physical and mental effort is
as natural as play or rest.
External control and the threat of punishment
are not the only means for bringing about effort
toward organizational objectives. Man will
exercise self-direction and self-control in the
service of objectives to which they are
committed.
Commitment to objectives is a function of the
rewards associated with their achievement.
The average human being learns, under proper
conditions, not only
to accept but to seek responsibility.
The capacity to
relatively high
imagination, ingenuity, and creativity in the
solution of organization problems is widely, not
narrowly, distributed in the population.
Under the conditions of modern industrial life,

the intellectual potentialities of the average

exercise a degree of
human being are only partially utilized.
Essentially, most people can be trusted to act
responsibly and ethically in balancing personal
interests with those of an organization.
These Theory Y assumptions involve sharply
different implications for managerial strategy than
do those of Theory X. They are dynamic rather
than
static: they indicate the possibility of human
growth and development; they stress the
necessity of selective adaptation (and the use of
influence and persuasion) rather than a single
absolute form of control; they are framed in
terms of a human resource which has substantial
potentialities rather than one which is unworthy
of trust and confidence.
Theory Y emphasizes integration, i.e., the
creation of conditions such that the members of
an organization can achieve their goals BEST by
directing their efforts toward the success of the
enterprise.

PYGMALION EFFECT:
The concept of self-fulfilling prophecy or
Pygmalion Effect is useful in understanding the
power of such
assumptions in influencing the selection of
managerial methods and tools, and the effect
they have on human behaviour.
Theory X assumptions that people are inherently

lazy and avoid responsibility often lead managers

to use methods of tight control and coercion, and
if people don't comply with directions, the use of
punishment. Such methods when used often
influence people to resist their use, to comply
with but not commit to organizational objectives,
and to provide a level of effort adequate to
protect themselves from punishment,
but one that is often well under potential. Such
behavior tends to confirm the underlying
assumptions. And so, the cycle of assumptions >
treatment > efforts is reinforced and becomes a
self-fulfilling prophecy. Such a Pygmalion Effect is
subtle and powerful in shaping the work culture,
employee attitudes, and of course, management
perceptions and philosophy.
Theory Y assumptions that view people in a
more positive light, justified by social science
research, create the same type of Pygmalion
Effect, but with dramatically different results.
Studies of high performance organizations clearly
indicate that their management philosophy is
based on Theory Y assumptions and the work
culture reinforces such.
Exercise: Just ask yourself to describe the
boss for whom you have done your best work?
List the characteristics of this person and the
work culture they are in, and then infer from
those characteristics, what the underlying
assumptions about people were. Surprised to
discover mostly Theory Y assumptions? Most

people tend to assume that they need to be

Theory X managers to be effective and to
maintain control or else their employees will
take advantage of them......BUT most people also
prefer to work in a Theory Y culture for a Theory
Y manager. Why do you suppose? What type of
manager do you want to be?
Challenge: How can an organization change
from a Theory X to Theory Y management
philosophy and style? It generally takes a
comprehensive organizational assessment and a
long-term intervention to openly address the
patterns of behavior in each
phase of the self-fulfilling prophesy cycle:
assumptions > treatment > efforts. It entails
realigning the entire HRM system to support such
change, and often rethinking the business
strategy of the firm itself. In promoting work
culture change, consider the 7 characteristics of
high performance organizations (Pfeffer, 1998):
(1) openness of information; (2) reduction of
status differences; (3) employment security; (4)
selective hiring; (5) extensive training; (6) team
management; and (7) performance based
compensation.
Perception Checking: This skill is useful in
inviting another person to disclose their feelings
and assumptions to you. When someone acts in a
certain manner, simple state your perception of
what may be motivating their behavior as
accurately as possible and ask if it is accurate.

For example, if someone hesitates to give you a

certain task to perform, you could state: I sense
that you may be uncomfortable in having me
perform that task; is that correct? If you have a
reasonably authentic relationship
with them, they may respond: No, it's just not a
priority right now. Or Yes, I am concerned that
you may become consumed by it and take effort
away from the primary task. Clearly, this skill
entails some social risk taking. If the response is
less honest, then that's a clear sign that some
relationship building is needed.
Departmentalization the grouping of related
functions into manageable units to achieve the
objectives of the enterprise in

1.5

Organizational Structures: Concepts and

Formats
the most efficient and effective manner .
Delegation the process that makes
management possible because management is
the process of getting results accomplished
through others. Delegation is the work a manager
performs to entrust others with responsibility and
authority and to create accountability for results.
It is an activity of the organizing function.
Scalar principle (chain of command) a clear
definition of authority in the organization. This
authority flows down the
chain of command from the top level to the first
or lowest level in the organization.

Centralization occurs in an organization when

a limited amount of authority is delegated.
Decentralization occurs when a significant
amount of authority is delegated to lower levels in
the organization.
Contingency approach an approach to
organizational structure that states that the most
appropriate organizational structure depends on
the situation, consisting of the particular
technology, the
environment, and many other dynamic forces.
When two or more people work together to
achieve a group result, it is an organization. After
the
Objectives of an organization are established,
the functions that
must be performed are determined. Personnel
requirements are assessed and the physical
resources needed to accomplish the objectives
determined. These elements must then be
coordinated into a structural design that will help
achieve the objectives. Finally,
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geographic area, and even matrix (also called
project organization). In many organizations, a
combination of these forms is used.
FUNCTION

Perhaps the oldest and most common method of

grouping related functions is by specialized
function,
Such as marketing, finance, and production (or
operations). Sometimes this form of
departmentalization
problems if individuals with specialized functions
become more concerned with their own
specialized area than with the overall business.
An example of departmentalization
may create
by function appears in Figure 11-1 below.
PROCESS

Departmentalization can also take place by

process. This type of departmentalization, which
often exists in manufacturing companies, is
illustrated in Figure 11-2 below.
PRODUCT

Whenever specialized knowledge of certain

products or services is needed,
departmentalization by product may be best. This
usually occurs in large diversified companies. This
form of departmentalization is illustrated in Figure
11-3 below.
MARKET

When a need exists to provide better service to

different types of markets, departmentalization by
market may be the appropriate form. An example
of a business serving nonprofit markets, which
uses the market form of departmentalization.

1.7

HUMAN RESOURCES MANAGER

Position Code Title Human

Resources Manager-1
Human Resources Manager 12 the employee
functions as a first-line professional manager of a
professional position in a standard work area or a
first-line professional manager of nonprofessional
positions in a standard work area.

Position Code Title Human

Resources Manager-2

Human Resources Manager 13 The employee

functions as a first-line professional manager of
professional positions in a standard work area, a
first-line professional manager of a professional
position in a complex work area, a first-line
professional manager of nonprofessional positions
in a complex work area, a first-line manager of a
professional position in a standard work area

receiving executive direction, or a first-line

professional manager
nonprofessional standard work executive
direction.
of in a receiving
positions area

Position Code Title Human

Resources Manager-3

Human Resources Manager 14 The employee

functions as a first-line professional manager of
professional positions in a complex work area, a
first-line professional manager of professional
positions in a standard work area receiving
executive direction, a second-line professional
manager of professional positions in a standard
work area, a first-line manager of a professional
position in a complex work area receiving
executive direction, or a first-line professional
manager of nonprofessional positions in a
complex work area receiving executive direction.

Position Code Title Human

Resources Manager-4
Human Resources Manager 15

The employee functions as a first-line professional

manager of professional positions in a complex
work area receiving executive direction, a secondline professional manager of professional
positions in a complex work area, a second-line
manager of professional positions in a standard
work area receiving executive direction, or a

third-line professional
manager of professional positions in a standard
work.

Position Code Title Human

Resources Manager-5
Human Resources Manager 16 The employee
functions as a second-line professional manager
of professional positions in a complex work area
receiving executive direction.

1.8

JOB QUALIFICATIONS
Knowledge, Skills, and Abilities NOTE :
Considerable knowledge is required at the 12
level, thorough knowledge is required at the 1315
levels, and extensive knowledge is required at the
16 level.
Knowledge of the principles and practices of
public personnel administration, including such
functions as classification, compensation, service
ratings, placement and training, and employee
relations Knowledge of the principles and
techniques of
employee training.
Knowledge
Service
procedures, and forms related to personnel
transactions and the merit system.
development and
of Michigan Civil Rules, regulations,
Knowledge of planning and evaluating training

programs.
Knowledge of employee practices and related
laws, rules and standards, including equal
employment opportunity policies and procedures,
civil rights, and other related laws and practices.
Knowledge of employee rights, benefits, and
obligations.
Knowledge of the types of training and
instructional materials and their uses.
Knowledge of the methods of conducting
training sessions.
Knowledge of grievance procedures and appeal
procedures.
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build our managerial experience and gain the
knowledge and skills to enable us to carry out the

role effectively.
How we develop will vary and take many forms.
We learn from role models and observing others,
from our experiences on the job, from coaching
(whether informal or formal), from training
sessions and from the conversations we have with
colleagues and our staff. However, there are two
key points to remember:
1. As a manager, you are not on your own. You
have your own support network, in particular
the support from your own manager, peers and
your staff. We offer support and advice as a HR
team; develop policies and guidance to help you;
provide formal opportunities for you to access
training; and facilitate other opportunities for
your development (such as this tool box). You
should never feel that you can't ask for help or
advice.
2. There is no simple how to manage rulebook
that you are somehow missing. You are not
expected to know all the answers to questions
you will face as a manager and, very often, there
is not one answer. This is the
most challenging but also the most rewarding
aspect of managing others people will react
differently in different situations and preparing
yourself for this through gaining an understanding
of your staff is crucial.

PEOPLE MANAGEMENT

In brief, if we think about the employment cycle,

it covers the following areas:

As a manager, you will be supporting staff at

different stages of this cycle. Developing as an
effective manager requires you to know what
your
responsibilities are: your level of authority, your
level of accountability, the duties you are required
to discharge as a manager and who is there to
help you perform effectively. It also requires you
to understand the organisation you work for, to
understand the structure of the organisation, the
mechanisms, the way it behaves and the reasons
why it behaves in the way it does - the culture of
the organization.
Check your Progress

What is training?
Discuss about HRM.
Write about milestones in HRM.
Describe about position description.
What are the steps foe management and
professional staff?
6. how to avoid unrealistic goals?
7. What is Counseling and
Coaching?
8. Write about annual performance review.
9. Discuss about the guidelines for building a
complete and fair
10. How to avoid evaluation Errors?
11. Discuss about appraisal cancellation?
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Such a definition would suit any personal,
professional, organizational, national or global
information system. Obviously, the organizational
information system those pertaining to the
planning, operation and control of enterprise are
the most important amongst these.
1. Information is data structured and organized to
be useful in making a decision or performing
some task.
2. Information infrastructure consists of the
hardware and software that support the

1.11Answer to CHECK YOUR PROGRESS

information architecture, plus the personnel and

services dedicated primarily to maintaining and
developing that hardware and software
3. A management information system is a subset
of eh overall internal controls of a business
covering the application of people, documents,
technologies and procedures by management

accountants to solve business problems such as

costing a product, service or a business wide
strategy.
4. Electronic commerce commonly known as ecommerce or e- commerce consist of buying and
selling of products or services over electronic
system such as internet and other computer
networks

1.12

FURTHER READING
You can also refer the following books for further
reading.
Management Information System W.S
Jawadekar
Management Information System Kenneth
C.Laudon

UNIT-2
CARRER PLANNING AND
DEVELOPMENT
Introduction
Unit objective
Unit Structure
2.0 Employment planning and forecasting
2.1 Recruitment, Selection Process 2.2 Sources
2.3 Induction
2.4 Orientation &amp; Training 2.5 Management
Development
2.6 On-the-job and Off-the-job
2.7 Management Developments
2.8 Performance appraisal in practice
2.9 Managing Careers

2.10 Summary
2.11 Answer to Check Your Progress
2.12 Further Reading

Unit Objective
Discussion about Organizational structure
HR
Discussion about to understand the
information requirements for HR

Introduction
In this lesson we shall discuss about managing
promotions and transfers. After going through
this lesson you will be able to:
I. Discuss promotions and its advantages
purposes, bases, policy.
II. analyse transfer and its benefits, problems,
purposes, policy

2.4

Orientation & Training

Statistics show that, in the first three months of
employment, employees suffer a disproportionate
number of work-related injuries. This underscores
the need for safety and health orientation of new
employees. New employees (including
transferred, re-hired and seasonal/ temporary
employees) have special training needs. These
should be identified for individuals and for groups.
The type of training for occupational health and
safety depends on:
The nature of the job ,
Previous work or job experience
Age (for example, the training needs of young

workers entering the workforce for the first time

will be different from those of an older person reentering the workforce)
Previous training within the company (in the
case of transferred employees)
Orientation training provides many benefits. For
example, orientation training:
Makes the employee aware of the health and
safety hazards of the job, how these are
controlled, and how they affect his or her safety
and that of others.
Helps to reduce the high risk potential of injuries
to young employees, new/transferred or
re-hired seasonal employees.
employees, and
Helps to requirements. Legislation Section.
or
temporary
meet legal Refer to
Helps to balance the company's need for
productivity with the worker's needs for self
esteem and security.
Helps to make the introduction of new,
transferred or re-hired employees more efficient.

Legislation
1. Occupational Health and
Safety Act

Certain general duties under the Occupational

Health and Safety Act have training implications.
For example, the employer is required to provide

information, instruction and supervision to protect

the health and safety of workers [section 25(2)
(a)]. The supervisor has a general duty to advise
workers of potential or actual dangers to their
health or safety of which he or she is aware, and
where prescribed, to provide written instructions
as to the measures and procedures to be taken
for the protection of
workers [section 27(2)(a) &amp; (b)]. The
worker's general duties are specified in section
28. Regulations made under this Act have
provisions for training to be provided in specific
areas. Some that would apply in most workplaces
are:

Industrial Establishments Regulation

(R.R.O.1990, Reg. 851)

Workers required wearing or use personal

protective equipment must be trained in their use
and care (section 79). Workers exposed to
biological, chemical or physical agents must be
trained in procedures and
precautions for handling, use and
storage,
protective
emergency
procedures (section 130).
required personal equipment and measures and

Workplace Hazardous Materials

Information System Regulation
(R.R.O. 1990, Reg. 860)

Workers who work with or near hazardous

materials must receive training in the content of
labels and MSDSs, procedures for use, care,
handling and storage, procedures where fugitive
emissions are present, and in emergency
procedures. Refer to sections 6 &amp; 7 of
the WHMIS regulation for complete requirements.
Furthermore, under section 42 of the
Occupational Health and Safety Act, this training
and worker's familiarity with it must be reviewed
at least annually and whenever changes are made
in the workplace that affect worker health and
safety.

Designated Substance
Regulations
asbestos, lead, etc.)
(e.g.,
2.

Affected workers must be trained

in the use, care, and limitations of respirators,
and in the provisions of the control program for
the designated substances.
The Codes for Medical Surveillance that are a part
of these regulations contain requirements for
specific health education

Training Program

At a minimum, any orientation program should

have provisions for:
General training
Job-specific training
Allocation of responsibilities Measurement and

evaluation

General Training
For the newcomer, this should include information
about the
company, its products, etc., and an explanation
of:
Department functions
reporting structures
Relationships with other departments
Standard operating procedures
reporting of hazards

Job-Specific Training

Training and instruction should be provided in:

The safety and health hazards of the job
Safe working practices, procedures and
precautions
(include applicable control systems such as lockout or work permits)
The use, care and maintenance of personal
protective equipment Specific legal requirements,
such as, for example, those required for
instruction and training in hazardous materials,
must be identified and addressed in the training
that is provided. The forms provided in figures 1
and 2 will help you to identify the items to be
covered in your orientation training program.

Personnel Manager

Ensure policy is communicated and implemented

Prepare orientation checklist and update this as
necessary

Plan and administer the formal program

Assist and advise staff having orientation
responsibilities

Manager/Supervisor
Ensure that the program is followed
Review checklist in advance, update as
necessary, establish priorities and schedule time
for required training
Ensure on-the job training is provided
Keep records of orientation training provided

H & S Rep/JHSC
Review program and recommend changes
Must be consulted in the development and
review of the hazardous materials training
program
May be required to assist in development and
delivery of orientation training

2.6

On the Job and Off the Job

2.6.1

Training:
1. Training is the process of providing the
opportunity for individuals to acquire knowledge,
skills, and attitudes required in their present job.
It should be systematic, continuous, and ongoing.
2. Benefits of Training are felt throughout the
organization.
a. Increased performance on the job includes
higher skill levels and corrected deficiencies.
b. Additional training is offered to cope with
change.
3. Assessing Training Needs and Objectives is

the first step in designing a training program.

a. Needs analysis should include a human
resources inventory and development plan as well
as an accurate, quantifiable assessment of the
present and projected needs for human
resources.
b. Study present and future job needs is best
accomplished during the job analysis.
c. Conduct an employee needs analysis, including
a review of current job performance and a
comparison of current
job skills with those required to perform jobs.
4. Designing a Training Program should focus
on responses to the following:
What types of skills need to be taught and
reinforced?
Who will provide the training?
Where and when will the training sessions occur?
Which specific training techniques will be used to
help increase skills? Knowledge and abilities?
5. Purposes of Training fall into many
categories.
a. Most training focuses on upgrading technical
skills for both blue- and white-collar positions to
keep up with changes.
b. Interpersonal skills are also important in
training because of the need for employees to
interact with others.
c. Problem-solving and responsive thinking have
become necessary skills for
success on the job; therefore, they are an area of

focus for training.

d. Basic literacy skills are necessary in all jobs;
training reading, listening, speaking.
will focus writing
and/or
on math, public
e. New employee orientation allows for success in
a new job; it usually covers organizational and
departmental topics.
f. Professional certification leads to a need for
training and preparation in some areas.
6. Instructional Staff for Training Programs
may come from within the organization, while
others come from outside.
a. The use of outside trainers depends on the size
of the group, training topics, and cost.

TRAINING MEHTODS:

Training is an important Human Resource (HR)

function and an absolute essential in today's
competition. Though companies now days make
hard efforts to hire the best available talent but
unless this talent is not polished through training,
it can never give the optimum output. Training is
an HR function which is concerned with enhancing
the knowledge, skills and competencies of
employees for a
particular job so that they perform to their best.
A few believe that training should be imparted
only to the new recruits in order to make them
learn about their job as well as the organization.
But in today's fast changing business environment

training must be a continuous process so that any

changes can be quickly and well adapted by the
employees at all levels. There are different
training methods adopted by firms depending on
their varying needs. But broadly the training
methods are categorized into on-the-job training
and off-the- job training methods. Let's discuss
how these methods differ.
The major differences between these two training
methodologies have been listed here:
1. On-the-Job training involves imparting training
in the real work environment i.e. it believes in
learning by doing; while off- the-job training
involves imparting training outside the real work
environment i.e. the principle of learning by
acquiring knowledge is adopted.
2. Under on-the-job training the training and
performance goes simultaneously so production is
not hindered at the time of training; while under
off-the-job training methods first training is
imparted and then the real performance follows
and therefore does not add anything to actual
production during training.
3. On-the-job training aims at developing the best
practices for a specific job and getting the job
done; while off-the-job training methods aim at
learning basic facts and skills and is more general
in nature.
4. On-the-job training is usually imparted by
experienced workers and first line supervisors at
the workplace; while off-the-job training is

imparted usually by
the academicians and
professionals at any place other than the real
workplace.
5. On-the-job training methods are suitable when
the trainees are limited in numbers and the job is
not hazardous in nature; while off-the-job training
methods can be utilized to train any numbers of
employees and for jobs that involve risks.
6. On-the-job training methods are
simple and less-expensive because they utilize
the actual workplace and firm's supervisors for
imparting training; while off- the-job training
methods are quite expensive as they need a
complete different set-up.
Training here is imparted in an artificial set-up
and outside experts are hired for the purpose.
7. Most popular on-the-job training methods
include job rotation and apprenticeship training;
while the popular off-the-job training methods
include classroom lectures and simulation
exercises.
8. On-the-job training is generally imparted in
case of manufacturing firms for productionrelated jobs; while off-the-job training is mostly
imparted for managerial and non-production
related jobs.
However, the kind of training methodology to be
adopted depends on several factors including the
purpose of training, the budget of training, the
number of trainees, the level of trainees in

organizational hierarchy, the time available and

the nature of job for which the training has to be
imparted.

Advantages:
Generally more cost effective than theory-based
training
Is less disruptive to the business because
employees are not away from work
Use of equipment that are familiar and will be
the one to
be used often, creates a better environment for
better learning
Employees may feel more at ease with people
they are familiar with. They also get to know
colleagues from other departments or plants
which may not have been so in off- plant training.
In-house managers
training can monitor performance and develop
remedial measures for emerging problems as the
training progresses
OJT ensures that employees are still generating
benefits to the
handling
organization even during the period of training

Disadvantages:
Teaching or guidance by a supervisor implies
that the supervisor is not only well versed in the
line, but that he or she can effectively impart
knowledge for one cannot impart what one does
not have.
The trainer may not have enough time to teach

the trainee properly. Where the right facilities are

not available for the exercise, inefficient result
should be expected.
Where the trainer has bad habits, these may be
passed on to the trainee.

How trainees view fully on- the-job

training?
Overall, trainees reported satisfaction with their
training, but raised some concerns regarding
teaching materials, assessment and training
providers. Trainees perceptions were identified
more in terms of their level of satisfaction in
relation to various components of their training,
rather than specific advantages or disadvantages.
In general, the trainees statements regarding
training processes and
content were less articulate than those obtained
from the registered training organizations.

Strengths and weaknesses

In general, trainees considered that on-the-job

training is a good way to learn. In particular, it
was significant to trainees that they are able to
work/learn at their own pace. Trainees valued the
fact that a certificate could be obtained while
working a normal job.
Weaknesses were related primarily to
organizational issues; for example, repetitive
module content, lack of support from the
registered training
organizations and lack of feedback on

performance. Trainees appeared particularly

concerned with various factors relating to their
interactions with the training organizations.
Nevertheless, the majority of trainees were still
willing to recommend their registered training
organization to a friend.

Improving fully on-the-job training

One benefit of understanding the perceptions of

stakeholders of fully on-the-job training is the
opportunity to identify areas for improvement,
aimed to increase training effectiveness.
Registered training organizations and trainees
reports of weaknesses as well as levels of trainee
satisfaction are particularly constructive in this
process. Findings from stakeholders, together
with some secondary research of literature, have
contributed to the following list of areas for
improvement and possible solutions:
1. Facilitate networking among trainees: trainees
should discuss their progress and on-the-job
training experiences via:
computer-assisted
networks; for example, computer-supported
collaborative learning
an organized schedule of regular meetings as
part of the training.
2. Facilitate time management: trainees should be
assisted in preparing a realistic schedule, and
training should include time- management skills.
3. Strengthen theory training: theory training
materials must be relevant and accurate and time

must be allocated for this training to ensure

trainees attain a universally applicable skill base.
4. Turn employers into trainers: employers need
to be provided by registered training
organizations with an understanding of how to be
a good trainer.
5. Value trainee hood in work culture: trainees
special status of traineehood should be
appreciated in the workplace by employers
referring to them this way and not as a fully
equipped worker, as well as explaining the
potential of the trainee to become an effective
workplace asset.

2.9

Managing Careers
PEOPLE ARE THE SOURCES of all productive effort
in organizations. Organizational effectiveness
depends on the performance of people working in
organizations. Better people achieve better
results. As a part of human resource
management, every organization should acquire
and retain skilled, competent, and motivated
employees, because the full potential of human
resources needs to be achieved for the growth of
the organization. For the purpose of
2.9.1 Career Planning and Development:
retaining skilled employees, management should
assist individuals to plan their careers with
realistic information about career opportunities
that exist within a particular organization. Career
planning is a recently developed phenomenon and

organizations are nowadays looking HRD in this

new angle.
The tremendous growth of organizations in recent
times due to technological improvements and
tough competition in global market necessitates
the organizations not only to select the right type
of staffs, but also to retain them in the
organizations. The dynamic and
growth oriented employees should be allowed to
grow through career development programs
because the high turnover of such potential staff
leads to great loss in terms of cost, quality and
productivity.
1.

Career Performance:

The individually perceived sequence of attitudes

and behavior associated with the work related
experiences and activities over the span of the
person's life.' Thus, a career refers to both
attitude and behavior and it is work related. Each
person's career is unique. It has an upward
mobility i.e.
making more money, having more responsibility,
acquiring more status and power.

Motivation and Career

Development:
2.

Handsome monetary as well as fringe benefits

and elevation in job are the main indicators of
career performance. The modern organizations
are basically interested in career performance
since it has a direct relationship with goal

attainment. The two aspects -the extent of

organization's performance appraisal, and the
pessimistic attitude of the individual to realize the
career effectivenessshould be well understood by the management
for better career development. So, career
performance is the integrated effort of both
management and the employees.
CAREER PLANNING AN ESSENTIAL COMPONENT
OF HUMAN RESOURCE MANAGEMENT

The current economic context, marked by

increased competition, integration in the
European Union and especially the need to
maintain competitive advantage in an increasingly
uncertain business environment, have led to the
introduction and the deployment of human
resources activities until recently neglected. Thus,
more
companies in Romania have started to develop
and implement organized planning and career
development systems of employees.
In human resource management, career planning
aims to identify needs, aspirations and
opportunities for individuals career and the
implementation of developing human resources
programs to support that career .

Guidance on some of the

competencies expected

The following points are a non- exhaustive series

of aspects that could be covered by the career
development plan, and it is relevant to the short-

term objectives that will be set by the researcher

and the reviewer at the beginning of the
fellowship period. The objectives should be set
with respect to the skills and experience that each
researcher should acquire at a given time of
his/her career. A postgraduate researcher at PhD
level will have very different needs compared to a
post-doctoral researcher at an advanced stage of
his/her professional development. These
objectives should be revised at the end of the
fellowship and should be used as a pro-active
monitoring of progress in the researcher's career.
1.

Research results.

These should give an overview of the main direct

results obtained as a consequence of the research
carried out during the training period. It may
include publications, conference, workshop
attendance, courses, and /or seminar
presentations, patents etc. This will vary
according to the area of research and the type of
results most common to each field. The
information at this level should be relatively
general since the career development plan does
not strictly constitute a report on the scientific
results achieved.

Research Skills and

techniques acquired.
2.

Competence in experimental design, quantitative

and qualitative methods, relevant research
methodologies, data capture, statistics, analytical

skills. Original, independent and critical thinking.

Critical analysis and evaluation of one's findings
and those of others Acquisition of new expertise
in areas and techniques related to the
researcher's field and adequate understanding
their appropriate application Foresight and
technology transfer, grasp of ethics and
appreciation of IPPR.
3.

Research Management.

Ability to successfully identify and secure possible

sources of funding for personal and team
research as appropriate. Project management
skills relating to proposals and tenders work
programming,
deadlines
negotiation
financial planning, and resource management.
Skills appropriate to working with others and in
teams and in teambuilding.
4.

Communication skills.

Personal presentation skills, poster presentations,

skills in report writing and preparing
supervision, and delivery, with funders,
academic papers and books. To be able to defend
research outcomes at seminars, conferences, etc.
Contribute to promote public understanding of
one's own field

Other professional
training (course work,
teaching activity):
5.

Involvement in teaching, supervision or

mentoring

Anticipated networking
opportunities.
6.

Develop/maintain co-operative networks and

working relationships as appropriate with
supervisor/peers/colleagues
within the institution and the wider research
community

Other activities (community, etc)

with professional relevance.
7.

Issues related with career management, including

transferable skills, management of own career
progression, ways to develop employability,
awareness of what potential employers are
looking for when considering CV applications etc.
2.9.2 Managing Promotions and Transfers

2.9.2.1

Promotions

Promotions refers to upward movement of an

employee from current hob to another that is
higher in pay, responsibility and/or an
organizational level. Promotions bring enhanced
status, better pay, increased responsibilities and
better working conditions to the promoter. There
can, of course, be dry PROMOTION where a
person is moved to a higher level job without
increase in pay.
Promotion is slightly different from up gradation
which means elevating
the place of the job in the organizational

hierarchy or including the job in the higher grade.

A transfer implies horizontal movement of an
employee to another job at the same level. There
is no increase in pay, authority or status.
Promotion, based either on meritorious
performance or continuous service, has powerful
motivational value. It forces an employee to use
his knowledge, skills and abilities fully and
become eligible for vertical growth. It inspires
employees to compete and get ahead of others.
Those who fall behind in the race are also
motivated to acquire the required skills to be in
the reckoning. Promotion thus, paves the way for
employee self development. It encourages them
to remain royal and committed to their jobs and
the organisation.
The organisation would also benefit immensely
because people are ready to assume challenging
roles by improving their skills constantly. Interest
in training and development programmes would
improve. The organisation would be able to utilise
the skills and abilities of its personnel more
effectively.

2.9.2.2

Transfers

A transfer is a change in job assignment. It may

involve a promotion or demotion or no change at
all in status and responsibility. A transfer has to
be viewed as a change in assignment in which an
employee moves from one job to another in the
same level of hierarchy, requiring similar skills,
involving approximately same level of

responsibility, same status and same level of pay.

A transfer does not imply any ascending
(promotion) or descending (demotion) change in
status or responsibility.

Purposes of Transfer:

To meet the organisational requirements:

Organisations may have to transfer employees
due to changes in technology, changes in volume
of production, production schedule, product line,
quality of products, changes in the job pattern
caused by change in organisational structure,
fluctuations in the market conditions like
demands fluctuations, introduction of new lines
and/or dropping of existing lines. All these
changes demand the shift in job assignments with
a view to place the right man on the right job.
2. To satisfy the employee needs: Employees
may need transfers in order to satisfytheir desire
to work under a friendly superior, in a
department/region whereopportunities for
advancement are bright, in or near their native
place or place ofinterest, doing a job where the
work itself is challenging, etc.
3. To utilise employees better: An employee
may be transferred because managementfeels
that his skills, experience and job knowledge
could be put to better useelsewhere.
4. To make the employee more versatile:
Employees may be
rolled over differentjobs to expand their
capabilities. Job rotation may prepare the
1.

employee for more challenging assignments in

future.
5. To adjust the workforce: Workforce may be
transferred from a plan
Where there is less work to a plant where there is
more work.
6. To provide relief: Transfers may be made to
give relief to employees who are overburdened or
doing hazardous work for long periods.
7. To reduce conflicts: Where employees find it
difficult to get along with
Colleagues in a particular section, department or
location they could be shifted to another place
to reduce conflicts.
To punish employees: Transfers may be
effected as disciplinary measures to shift
employees indulging in undesirable activities to
remote, far-flung areas.

2.10

SUMMARY
If the organization works on a standardization
system whereas rules, policies, system and
procedures have been laid down, than these
become part of the MIS. If the responsibilities are
also clearly
defined and allocated. If the organization is
modified as aproduct or a project organization
system.
Check your Progress
1.
2.

What is Orientation and training?

Explain about Legislation.

What is On the Job and off the

job?
4. Discuss about the training methods.
5. How trainees view fully on the job training?
6. How to managing careers?
7. What is the purpose of transfer?
8. How to managing promotions and transfers?
1. Organizational structure is a mainly
heirarchiacal concept of sub ordination of entities
that collaborate and contribute to serve one
common man.
2. Organizational power affects organizational
behavior during information system planning,
resource allocation and implementation.
3. Computer system can be an instrument of
organizational
3.

2.11

ANSWER TO CHECK YOUR PROGRESS

power through access to information.

2.12

FURTHER READING
You can also refer the following books for further
reading.
Management Information System W.S
Jawadekar
Management Information System Kenneth
C.Laudon

UNIT-3
BASIS OF COMPENSATION
Introduction
Unit Structure

3.0 Compensation trends

3.1 Administration Procedure
Discipline
3.2 Establishing Pay Plans
3.3 Summary
3.4 Answer to Check Your Progress 3.5 Further
Reading

INTRODUCTION
Libraries and Information Centres' services in
Nigeria are being regarded as humanitarian
services and therefore issue of compensation and
benefits are not well defined. However, other
forms of financial assistance embedded in the
Nigeria civil service rule include things like
Monetization, National Health Insurance Scheme,
Contributory Pension, and Pension Benefits; all of
which staff of Libraries and Information Centres
also benefit from. Aside this is the Annual
Appraisal Form (Aperform) that contains basic
requirements expected
of an employee before he can be promoted.
Nigerian Universities also makes use of this to
assess staff in order to determine their
remuneration as at when due.
For corporate body organizations where special
libraries and information centres form part of the
organization, compensation and benefits will
depend on the annual appraisal or job satisfaction
based on criteria spell out in their
organization'shandbook. Evaluation forms also
contains inter alia: what you are expected to do

according to your job descriptions, your

relationship with staff, creativity, sense of
direction, delegation of
duty, which will be rated as either fair, good, very
good, satisfactory and excellence. All these
indices hinges on employees' performances.
Though an employer compensates his employee
with motivation and benefits based on job
performance, there is need for job satisfaction.
Every employer expects certain degree of result
oriented services that would fall in line with his
vision and mission while every employee
demands job satisfaction.
Ordinarily, the management of people at work is
an integral part of the management process, put
differently, managers need to understand the
critical importance of
people in their organizations so as to recognize
that the human element and the organization are
synonymous(Tella, Adeyemi, and Popoola, 2007)
Therefore, it is imperative to compensate an
employee with benefits if he merits it. Cascio
(2003) opines that because of the importance
that compensation holds for people's lifestyle and
self esteem, individuals are very concerned about
what they are paid a fair and competitivewage,
while organizations are also concerned about
what they pay because it motivates important
decisions of employees about taking
a job, leaving a job and on the job performance.

Statement of the Problem

If one turns his attention solely to academic

libraries in Nigeria, it has been observed that
certain compensation and benefits enjoyed by
faculty lecturers are not extended to practicing
academic librarians. The reason may not be
farfetched in the sense that the edict that
established universities has always considered the
university library as a supporting unit, thus
placing it and its employees as a second value.
This study therefore aims at identifying those
benefits and compensation
enjoyed by academic staff and denied
professional libraries and its effects on librarians'
job performance and satisfaction; with a view to
recommending a way out of the situation.

Objectives of the Study

This study seeks to achieve the following
objectives:
1. To identify the various forms of benefits
provided for by library employers.
2. To establish other forms of compensation that
academic librarians would like to enjoy outside
their salary.
3. To ascertain if there are any other types of
benefits enjoyed by their counterparts within the
organization that is not extended to them.
4. To establish the relationship between
compensation, benefits and job satisfaction
among academic librarians

Research Questions

The following research questions were developed

to guide the study:

a. What forms of benefits do library professionals
enjoy in their place of work?
b. Are there other forms of compensation library
employees would like to enjoy apart from their
salary?
c. Are there any other types of benefits the
university which is
not bend? What is the
relationship between academic librarians?

3.0

Compensation Trends
among
In the early 20th century, the America
government took a significant role and began to
introduce several changes in many aspects of
workers pay and remuneration. This brought
about Acts such as the fair Labour
Standards Acts of 1938, which dictated equal pay
for equal work. However, recessions dotted the
following twenty years but later on the economy
boomed and government played an increasingly
important role in America's workplace by ratifying
the equal pay Act Executive order 11246, Title 7
of the Civil Rights Acts in 1963( Noe, Hollenbeck,
Gerhart and Wright 2003; Switzer, 2004).
For example in Nigeria, in line with the workmen's
compensation Decree of 1987, all organizations
and businesses are to provide workers'
compensation coverage for the benefit of their
employees who may

be injured or incapacitated while on the job. This

is followed by pensions Reform Act of 2003 which
requires every employment to maintain a life
insurance policy in favour of an employee for a
minimum of 3 times the annual total emolument
or pay of the employee (Aloysus, 2007).
The same way, history of wage reviews fought by
workers can be traced to 1945 when workers
staged the famous 45 days general strike for a
Cost Of Living Allowance (COLA). In 2007,
Nigerian workers demanded for a 25% increase in
general wage through the Ernest Shonekan wage
consolidation committee and this was arbitrarily
cut down to 15% by
Obasanjo government in 2009.
Nigerian workers have struggled for
fifteen times to have wages improved
and a national minimum wage
legislated upon. However, the
struggles produced notable victories
for workers and the Nigerian Labour
Congress (NLC), and it was usually
the case .(http://www.nlcng.orgminimum%20wage.pdf)
Compensation as it were is a complex topic that
has significant impact on organizational success
(Dessler , 2005), and for any organization to
succeed, it must not look up to capital investment
but to its employees as the fundamental source of
improvement with the
understanding that the human element and the
organization are synonymous (Tella. Ayeni, and

Popoola, 2007). According to Cascio (2003), the

objective of the design of compensation program
is divided into two, which are, direct and indirect
forms of compensation. Direct compensation has
to do with wage and / or salary aspect while
indirect compensation is the fringe benefits a
worker enjoys as a result of working in an
organization. Integrating the two into a package
that will encourage the achievement of an
organizations goal is what compensation is all
about.

Benefits
From library and information specialists point of
view, monetary compensation is an essential
component in recruitment and retention process;
but benefits are equally important and can often
be the deciding factor in whether an individual
accepts an offer or even stays. Switzer (2004)
concludes that as the competition increases for
library employees with the skills and knowledge
that most academic libraries need, many libraries
rely on their benefit packages to give them the
leading edge. It is pertinent therefore that
present day human resource specialists are well
informed about the various benefits available
so that they can adequately manage recruitment
and employment.
Academic institution typically offer a wide range
of benefits to their employees; and as university
employees, academic librarians are afforded the
same institutional benefits as other university

employee. These include retirement plans,

medical care, sick and annual leave, sabbatical
leave, study leave, maternity leave, child care,
pension benefit, sponsorship to conferences and
workshops, leave bonuses, on campus
accommodation, and so on, which are referred to
as university supported benefits. Libraries, in
addition to these can also make some
benefits available to its employees. The onus is on
the human resource specialist who must be aware
of benefits offered by other libraries to ensure
that his library is not left behind. Some library
supported benefits have monetary value while
some have no financial impact.
Administration employees are assigned
administrative and management responsibilities
or professional duties. Administration
employment is at will and can be terminated at
any time in accordance with USF Regulations and
this

3.1

Administration Discipline Procedure

procedure. There is a high level of
expectation
professional
Administration
Progressive discipline may be applied in situations
of unacceptable behavior, but there may be fewer
steps and the time allowed for improvement may
be reduced. An ER Consultant can assist in
determining the appropriate action to take for a

specific situation

Counseling
At the first indication of a problem, prior to
issuing a formal disciplinary notice, the supervisor
should counsel an employee on appropriate
behavior
for appropriate behavior for employees.
and document such counseling in writing.
Documentation can take the form of a
memorandum to the employee from the
supervisor, with Counseling Memo or
Documentation of Counseling as the subject,
which describes the problem behavior and
outlines necessary corrective action and/or future
behavioral expectations. However, if the employee
has previously been counseled about the behavior
or the behavior warrants discipline after just
cause has been established, an appropriate level
of discipline should be administered.

Discipline

Reasons for just cause include, but are not

limited to, those described in the USF Progressive
Steps for Disciplinary Action. Inability to perform
assigned duties and/or substandard performance
of assigned duties on a continuing basis may be
considered just cause for incompetence.
Disciplinary actions may include written
reprimand, disciplinary demotion, disciplinary
reduction in pay, and dismissal. Oral reprimand
and suspension are not generally used for
Administration employees; however, they can be

options if warranted by the type of misconduct.

Written Reprimand May be the first step of
discipline for an Administration employee if
counseling has not helped the employee improve
or if the problem behavior is at a level that
warrants discipline without initial counseling. It
formally places the employee on notice that
corrective action must be taken.
The reprimand must be approved by the
dean/director/designee.
The document (see Written Reprimand Sample
Format) should be signed and dated by the
supervisor and employee (as acknowledgment of
receipt). If the employee refuses to sign, a
notation of the refusal must be noted on the
document.
The original is provided to the employee, a copy
is forwarded to HR for the employee's official
personnel file, and a copy is maintained by the
department.
Dismissal Separating an employee from the
university. It is the most severe form of discipline
and is either the initial step in the case of a major
behavioral infraction or the final step in the
progressive discipline process. The following steps
must be taken before dismissal can occur:
A written request to dismiss the employee is
submitted to HR,
with approval from the dean/ director/ designee
of the employee's college/division. The request
must include any pertinent documentation to

support the action.

HR reviews the documentation to determine if
there is just cause for dismissal. If so, the dean/
director/ designee is delegated the authority to
notify the employee in writing of the proposed
action. The employee is given 10 calendar days
from date of receipt of the notification to respond
in writing to the proposed action.
The employee is typically placed on
administrative leave or annual leave during the
10-day response period.
If the employee provides no compelling reason
for dismissal not to occur, HR authorizes the
dean/ director/designee to notify the employee in
writing that the dismissal action will be taken and
the effective date.

3.2
1.

Establishing PAY PLANS

Communication:

Constant and accurate communication levels

designed to fairly inform as to what is being
achieved both individually
and at a corporate level are a priority in any
incentive scheme. The key message is that
incentive pay is not further reward for what
individuals are already paid to do. It is reward for
smarter performance, better levels of
organization performance, greater commitment,
and so on. This is an area where schemes often
fail as incentive pay is seen as further reward for
work already done.

2.

Performance Management

The more important part of the communication

process is the interaction between the manager
and the employee as to what is happening. Issues
such as ensuring goals are set, understood and
achievable, what level of progress is being made,
should goals be altered (relatively rare in the
course of an annual cycle), what training is
necessary, and all the other issues covered in
good performance improvement programmes
including incentive pay outcomes are covered
here.
3.

Line of Sight

Ensuring targets and hence incentive

opportunities align with what you can influence is
important and is accepted as
being basic to understanding and channeling
behavior. Line of sight varies depending on the
level of the role, the size of the organization and
the complexity of the job. Share options as an
incentive have an excellent line of sight in a high
tech start-up - probably for all levels of staff but
are less relevant for basic support roles in a
multinational.
4.

Tenacity

It will probably take two years to fully integrate a

new incentive based remuneration structure with
a three or four month lead in period prior to its
initial introduction. Management, HR,
everyone, will have to have patience and

understand that the system will need fine tuning

in the course of the first two cycles. It should not
be seen as a big deal, just necessary adjustment
to reflect organization culture and practical
experience.
5.

Dollars

Make the potential dollars worth having a shot at.

One, two or three percent of base salary are very
low percentages to put on offer in an incentive
scheme and are likely not to be motivating. A
base figure should be around 5% for any role.
Percentages vary enormously and can be
multiples
of salary depending on the role. Remember
always this money is contingent on performance,
ie. It is not a gimmee and many incentive
schemes put the money on offer into a range (eg.
Between 5% and 10%).
6.

Time Period

Set the giving out of rewards commensurate with

the level of role and the type of duties being
undertaken. For many roles a yearly timescale is
appropriate. Some support roles would probably
benefit from a six monthly or quarterly payout
period, as is common in many sales and
production roles. Why?
It keeps the link between the work done and the
reward clear.

Understand how
Motivation Works
7.

What motivates individuals when it comes to

reward and recognition lies within a complex of
personal, career , and organization interaction
factors? It is not particularly simple and varies at
different stages of the career cycle. The theory is
complex and still relatively new and can be best
summarized in that our understanding has
highlighted a few areas that rarely work in any
circumstances and suggested a number of
others that are likely to succeed. With incentive
pay the motivation link is bound up with personal
ownership of it and commitment hence the strong
emphasis on communication.
8.

When to Introduce

There may never be a wrong time, but certainly

sometimes may be better than others. If other
major institutional changes are occurring then it
may not be the best time to introduce. Remember
that a package of initiatives will make incentive
pay succeed with the communication and
performance
management components being key supports.
9.

Who is in the Scheme?

Everyone would be the answer today, although it

may be better to phase it in starting with a senior
management level. The key to incentive pay is
understanding that it is primarily a different way
of paying people involving a different perspective
which, if it is truly working correctly, links
organization success with personal reward.

What happens to the Wage

and Salary Bill?
10.

A well designed scheme should be effectively self

funding.
Alignment of
divisional, and accountabilities
targets should be seamless. If this link is not
there you run the danger of merely increasing
your wage and salary bill. Any scheme that
ignores this link will have serious questions asked
of it at board and/or senior management level.

3.3

Summary
The goal on this concept should be provide the
information which has a surprise value and which
reduces the
to
individual, corporate financial
uncertainty. It should simultaneously build the
knowledge base in the organization by processing
the data obtained from different sources in
different ways.
Check your Progress
1.
2.
3.
4.

How to write the statements of a problem?

What about the compensation trends?
How to administrate the discipline procedure?
Discuss about establishing plans.

3.4

Answer to Check Your Progress

1. There is basic components based data
processing system. They are machines, programs,
people and data.

These are termed in different ways like

hardware and software.
3. The conversion of facts into meaningful
information is known as data processing.
2.

3.5

Further reading
You can also refer the following books for further
reading.
Management Information System W.S
Jawadekar
Management Information System Kenneth
C.Laudon

UNIT-4 INFORMATION SYSTEMS

Introduction Unit Structure
4.0 Foundation of Information System
4.1 Framework for Business Users
4.2 Components of a Strong Health Information
System
4.3 Foundation of IT 4.4 IS Activity
4.5 Summary
4.6 Answer to Check Your Progress 4.7 Further
Reading

4.0

Foundation of Information System

Information system has become a integrated into
our daily business activities as accounting,
finance, operation management, marketing,
human resource management, or any other major
business functions.

What is an Information system?

We begin with a simple definition that we can

expand upon. An information system (IS) can be

any organized combination of people, hardware,
software, communication networks,
data resources, and policies and procedures that
stores, retrieves, transforms, and disseminates
information in an organization. People rely on
modern information system to communicate with
one another using a variety of physical devices
(hardware), information processing instructions
and procedures(software), communication
channels(networks) and stored data (data
resources).

4.1

Framework for Business Users

A useful conceptual framework that organizes the
knowledge presented in this text and outlines
areas of knowledge you need about
information systems. It emphasizes that you
should concentrate your efforts in the following
five areas of IS knowledge.
Foundation concepts: fundamental behavioral,
technical, business and managerial concepts
about the components and the roles of
information systems. Examples include basic
information system concepts derived from general
system theory or competitive strategy concepts
used to develop the business applications of
information technology for competitive
advantage.

4.2

Components of a Strong Health Information

System

The HMN Framework explains why countries

need to build stronger systems to deal with health
information. The Framework describes what
makes a system effective, how each part of the
system can be evaluated, and the principles that
help countries to build and strengthen their
systems according to an agreed standard. This
leaflet briefly explains six key components that
help countries develop their own health
information systems (HIS) in a way that
empowers all those who contribute to and benefit
from health information.
The Framework is designed to build upon existing
systems, and offers a set of processes and tools
to plan, implement, assess and strengthen
country information systems. A separate fourpage leaflet The Need for Strong Health
Information Systems explains the importance
of investing in HIS that follow the agreed
framework, and how countries can implement a
stronger HIS according to the HMN'three-phase
process.

Six key components

The Framework divides the components into three

categories:inputs, processes and
outputs.The inputs category includes all HIS
resources the physical and structural
prerequisites of an HIS. These include the ability
of those responsible to lead and co-ordinate the
process; the existence of necessary laws and
policies; financial resources and people with the

necessary skills to do the work;and finally the

infrastructure everything from office space and
desks to filing systems and computer networks.
The processes used by an HIS include:
Indicators a set of measures that show
changes in the country's health profile;
Data sources an integrated HIS brings
together data from a variety of sources.
Data management needs enable easy access
to relevant information for those who need it,
while protecting the privacy of individual patients.
The information produced the HIS outputs
needs to be relevant, accessible, and useful
evidence for decision making.
Information product are collated from a range
of sources, and synthesized into usable statistics
that can be analyzed and compared.
Through widespread dissemination and use of
information products, the HIS provides direct
benefit to all those who participate in it, providing
an ongoing incentive for users to continue to
strengthen the system.
1. HIS resources there are several physical
and structural requirements that need to be put in
place before a strong system can be built
Legislative, regulatory &amp; planning
framework.
Personnel, financing, logistic
support, IT and communication systems.
Resources include everything the system needs,
from office supplies to computer systems, the

staff and their capabilities, and the policies that

allow the system to operate. Each country's HIS
needs to be designed to make use of the
resources that are available, and to best meet the
country's needs.
2. Indicators to monitor the system's
effectiveness, it needs measurable sets of data
that reflect change over time
Indicators measure determinants of health,
health system, and health status.
Indicators need to be valid, reliable, specific,
sensitive and feasible to measure.
WHO has produced a compendium of standard
definitions and measurement issues for 40 key
core indicators World Health Statistics 2009?
This is a good reference for developing indicators.
3. Data sources a combination of sources, both
periodic and continual, provides the best quality
information most efficiently.
Population-based sources population surveys,
civil registration, censuses.
Institution-based sources individual records,
service records, resource records.
An integrated HIS pulls together data from a
range of sources,
and integrates them into meaningful information
products that can be readily accessed and used.
4. Data management to get best collection,
storage, quality- assurance, processing,
compilation and analysis. A minimum dataset
simplifies

collection and improves the quality of data.

An integrated data repository combines data
from different sources, and both collects and
manages information, and enables wide
distribution of data.
Once data has been collected and stored, it needs
to be processed and compiled in such a way that
the data can easily be compared and collated with
information drawn from other sources, so that
data is not duplicated, mistakes are identified and
corrected, and accuracy and confidence levels can
be measured.
5. Information products data transformed
into information that can be used to by decision
makers to improve health care
A cycle of value adding through compilation,
analysis, interpretation, presentation, influence
and implementation results in a strengthened HIS
and a more effective health system.
User dashboards, reports, queries, and alerts give
ready access to the results of the value-added
information resulting from the analysis of the
data.
6. Dissemination and use the value of
information is enhanced by being accessible to
decision makers and by providing incentives for
information use
Country information can be made a core part of
day-to- day management of health systems. This
can be achieved by placing a greater value on
information collection, management and use.

By connecting data production with its use, the

HMN Framework empowers all those who
contribute to strengthening the system.

4.3

Foundation of IT

Foundation Concepts: Information

Systems in Business
The Real World of Information Systems
What You Need to Know
The Fundamental Roles of IS in
Business
Trends in Information Systems
The Role of e-Business in Business
Types of Information Systems
Managerial Challenges of Information
Technology

The Real World Of

Information Systems
1.

If we are to understand information systems and

their functions, we first need to be clear on the
concept of a system. In its simplest form, a
system is a set of interrelated components, with
a clearly defined boundary, working together to
achieve a common set of objectives.
1.1 What Is an Information System?
An information system (IS) can be any
organized combination of people, hardware,
software, communications networks,
data resources, and policies and procedures that
stores, retrieves, transforms, and disseminates
information in an organization.

People rely on modern information systems to

communicate with each other using a variety of
physical devices (hardware), information
processing instructions and procedures
(software), communications channels (networks),
and stored data (data resources).
Consider some of following examples information
systems:
Card catalogs library
the of
in a
Your book bag
1.2 Information
Technologies
Business professionals rely on a variety of
information systems that use various
information technologies (ITs). While the
terms information system and information
technology are sometimes used interchangeably,
they are two different concepts.
Term information system describes all of the
components and resources necessary to deliver
its information and functions to the organization.
In
contrast,
the term
information technology
refers to
hardware,
networking,
management

necessary for the system to operate.

For our purposes, however, we will concentrate on
computer-based information systems and
the various software, and data components
their use of the following information
technologies:
Computer hardware technologies:
Microcomputers Servers mainframe systems
Input Output storage devices
Computer software technologies operating
system software Web browsers database
management systems software for business
applications
Telecommunications network technologies
telecommunications
media wireless access Internet extranets.
Data resource management technologies
including database management system software
for the development, access, and maintenance of
the databases of an organization.
FRAME WORK FOR BUSINESS

Introduction
The business model is an abstract concept with
many facets. It describes the implementation of a
business concept and is used for
multiple purposes by different users. It is thought
by some that a business might succeed or fail
depending on its business model. Business
consultants and academics use the term business
model to describe the operations and business
concepts of an entity and despite its vagueness,

the business model concept has become a

pertinent notion in the managerial vocabulary
(Tikkanen, Lamberg et al. 2005, p.789).
The business model concept became prominent
during the dot com boom of the late twentieth
century. It is not that business models did not
exist before this time it is just that the notion was
yet to be conceived. The
advent of electronic commerce caused dramatic
changes in the way businesses offered products
and services and to the products and services
them, causing significant changes in the
underlying business processes and infrastructure.
The business model concept was born out of the
need to understand and explain these new ways
of doing business. However, if the term is to have
long-term utility there must be some consensus
on what a business model actually is and how it
should be represented.
Numerous definitions of business models have
been proposed, some are abstract (Hamel 2000;
Hawkins
2002; Rappa 2006; Timmers 1998; Weill and
Vitale 2001) whilst others are detailed and
prescriptive of the business functions
(Chesbrough and Rosenbloom 2000; DubossonTorbay, Osterwalder et al. 2002; Mahadevan
2000).
Research that proposes components of business
models is also prolific (Afuah and Tucci 2003; Alt
and Zimmermann 2001; Chesbrough and

Rosenbloom 2002; Hamel 2000; Linder and

Cantrell 2000; Magretta 2002; Mahadevan 2000;
Weill and Vitale 2001). The problem with the early
research in this area is that it was largely driven
by researcher perception. Osterwalder et al
(2002)
synthesised the existing electronic commerce and
management
literature to
comprehensive
ontology(BMO) that specifies, in a structured
way, elements and sub- elements of the business
model. The BMO is prescriptive in nature,
providing element descriptions, associations,
attributes and units of measurement aiming to
serve as the foundation of management tools.
A business model ontology that takes an
economic value, multi-viewpoint approach to
business modelling is the evalue ontology. It
depicts the value exchanges within a business
network and focuses on the interactions of
produce a business model
the entity with others in the value network
(Gordijn and Akkermans 2001). The aim is to
articulate and evaluate innovative business ideas.

The Need for a Business Model

Conceptual Framework
The goals of a conceptual framework are
threefold. Firstly, to describe existing practice,
secondly, to prescribe future practice; and thirdly,
to define key terms and fundamental issues. The

conceptual framework should provide the basis

for future debate especially in relation to
prescriptions for future practice and definitions of
key terms and fundamental issues (Miller 1987).
A conceptual framework aims to ...broadly define
a number of key terms and concepts that can be
used in identifying and debating the issues.
(Miller and Islam 1988, p.96). Given the state of
business model research and the lack of
consensus regarding definitions and constructs of
business models it seems appropriate to apply the
conceptual framework in a bid to progress the
research.
The financial reporting conceptual framework
established by the accounting profession over the
past 30 to 40 years will be used as a basis for this
business model conceptual framework. Both
financial reporting
and business modeling Endeavour to
communicate aspects of the business to a wide
and varied audience and the interests of a wide
range of user groups need to be considered when
developing practice guidelines and theory.
It is reasonable then to expect that the theory
development problems encountered by the
accounting profession can serve as lessons for
business modeling and that benefits can be
gained by adopting a conceptual framework along
the lines of the financial reporting conceptual
framework. The next section describes the
building blocks of the financial reporting

conceptual
framework and applies them to business
modeling.

4.4

IS Activity
1. Introduction Activity theory has inspired a
number of theoretical reflections on w hat
information systems (IS ) and information system
s development (IS D ) are about (e. g. ,
Bertelsen, 2000; B dker, 1991, 1997; Bdker
and Petersen, 2000; Hasan et al. , 1998; Kuutti,
1991; Nardi, 1996). In this paper we carry on
that tradition by applying activity analysis and
activity network analysis on IS D as a work
activity.
This paper is the second part of a series of papers
applying activity analysis on information system
s. In the first paper we introduced our framework
of activity analysis and activity network analysis,
and discussed how they can be used as a day- today method within IS D itself, by practicing
system s developers (Korpela et al., 2000a).
T he objective of the current paper is to provide
an operational research framework for studying
IS D as a real-life work activity in context. The
third paper applies activity
network analysis in the relations between IS
research and IS practice (Korpela et al. , 2002).
The fourth one is a position paper linking the
activity-level framework to wider societal levels of
analysis Korpela et al. , 2001). Further papers w

ill present empirical results and link activity

analysis to use case T he paper is structured as
follows.
First we briefly introduce the basic concepts
activity and activity network in the way we will
use them in the rest of the per . Next we define
what we mean by IS D in broad term s, mainly in
relation software
engineering on the one hand and work
development on the other hand. Activity network
analysis is then used for defining ISD's relations
with neighboring activities in a few typical
variations.
The conceptual framework is then applied
analyzing IS D as a temporary work activity
across an organizational border . Basedthe
analyses, we outline an action research
methodology for studying how IS D practiced and
how it can be developed in a given real life setting
Nigeria in ours. Finally, we conclude by
discussing the contribution and the relevance of
our analysis.
2. The analytical framework : Activities and
networks activity theory incorporates quite
different psychological, educational, cultural and
developmental approaches on hum an activity,
based on Vygotsky (1978), L eontiev978) and
other classical texts (for a summary, see
Hedegaard et al. , 1999). The specific analytical
framework used in this paper is based on
Engestrm 's (1987, 1990, 1999) Developmental

Work Research, but in a slightly elaborated form .

T he
framework is summarized below in a very concise
form more profound accounts on how the
framework was derived and how it com pares with
related work by others, are published elsewhere
(Korpela et al. , 2000a; Korpela, 1994).
We regard work activity as a system ic entity
comprising of a number of elements which must
fit together to some extent (Figure 1; cf.
Engestrm , 1987, p. 78). W hen studying
collective work, the unit of analysis must be
activity as a system, as a w hole, not any of its
constituent parts in separation. How ever,
the elements and the relations between them
constitute the checklist for a researcher trying to
grasp w hat an activity is. T he elements of the
model in Figure 1 are presented in an abstract
way in the following, and illustrated in sections 3
and 5 through two IS D examples.
According to Leontiev (1978), the motive of a
collective activity is in its shared object or m
ore specifically, in w hat the object transform s
into during the activity, i. e. the outcome. For
instance, the motive of a construction activity is
to transform the raw materials into
a house; the motive of scientific writing is to
transform research results into a publication.
Individual actors or subjects engaged in the
activity may or may not be conscious of the
collective motive, but it is yet the shared object

and its transformation into the jointly produced

outcome which define an activity.
The actors perform their individual actions of
work on the shared object through mediating
instruments or means of work which can be
material (technology) or in material (language,
skills, theories). For
instance, a carpenter applies a hammer and his
skills on some planks and nails in order to
construct the scaffolding for a building; a
researcher applies a word processor in order to
transform her research results into an article. E
ach actor may have his or her own means, or
some of the means can be shared. T he individual
actions taken together form the process through
which the object is transformed to the output. In
order to merge the individual actions into a
collective activity, there needs to be some form of
coordination between them,
mediated by the means of coordination and
communication; for instance rules, division of
labor , time tables, meetings, phone calls, and so
forth. In a way, the actors taken together as the
collective actor of the activity operate through
these means on the other elements.
The means by which the individual actors act
upon the object (i. e. , the means of work) and
the means which mediate the relations between
actors (i. e. , the means of coordination and
control) can overlap a medical record for
instance is both a means for a physician in

acting upon a patient's disease, and a means of

coordination and communication among a team of
healthcare professionals.
3. ISD: Between work development and
software engineering In day-to-day parlance,
the term information system is used simply as a
synonym .For a multi-user computer application
(multi-user software package). In information
system s research, the term refers to a system ic
entity which includes both technological and social
elements (Avison, 1997; D avis, 2000). However,
in activity theory the
system ic unit of analysis is a work activity
defined by a shared object, not by the technology
being applied within the activity.
The information technology used among the
various means of an activity m ay not form a
system ic entity at all, but a collection of bits and
pieces of information technology which happen to
be needed (Korpela et al. , 2000a). Even as a
social system , i. e. as an information
management process, an information system is
seldom an activity in itself, but a subset of the
actions needed in a work activity which aims at
producing something
else than information as the main outcome. In
the cases w hen the object of a work activity is
indeed a need for information and the intended
outcome consists purely of information, we regard
it less confusing to call such activities information
processing information

activities,
information system s.
4. ISD with in a network of activities Let us
now proceed to analyzing the network of activities
around IS development (Figure 6). T he activities
in the diagram are named according to
activities or management rather than
their collective actors, which taken together
form the main stakeholder groups in ISD. They
are as follows:
1. The IS users work activity is the reason for
existence for IS D according to our definition
above, the very purpose of IS D is to facilitate
this work activity by new informationtechnological facilities (means of work or means
of coordination and communication).
2. The IS professionals are needed in order to
identify, obtain, design, construct,
install and modify the technological facilities for
the users. In the traditional way, IS D was purely
the IS professionals job they just peeped at the
users activity in the beginning in order to
capture the requirements, and then delivered
the finished system to them after some time. In
the modern, participatory or cooperative way, a
temporary multi- professional activity should
emerge between the IS professionals and users
during an IS D project (the
dashed-line ellipse in F igure 6; cf. B dker, 1996;
B dker and P etersen, 2000).
3. IS academics, through educational and

research activities, produce the professional

actors and some of the means (IS D skills and
methodologies) to the development activity. IS
practice is the reason for existence for the IS
educational and research activities, and provides
the object for the latter. A gain, education and
research can be conducted in a unidirectional way
in which
students and practitioners are regarded as
passive recipients, or in a participatory or
cooperative way in which students and
practitioners become co- actors of a joint activity.
4. Management provides the specific rules of the
game, in addition to the m ore generic rules
provided by
societal
legislation,
bodies,
heritage. T he management activity should
provide, organize and apply much of the means of
coordination
activities like professional and cultural
for the other activities, and ideally align the mis
fits between the different activities within the
network. How many management activities are
involved and w hat are their respective scopes of
control, depends on the organizational boundaries
which are not depicted
5. Finally, the IS users clients provide the reason
for existence for the IS users work activity the
IS users produce the outcome of their activity so

as to facilitate the work and life activities of

their clients (or customers or patients) The IS
users don't need the improved informationtechnological facilities just for themselves, but in
order to better facilitate their clients. Thus, if for
instance w e are developing improved IS facilities
for a healthcare activity, w e should not just look
at how doctors and nurses can work m ore
efficiently, but how their patients (or citizens in
general) can get better healthcare services as a
result of the new IS
facilities. As we have argued elsewhere (Korpela
et al.1998) and questioned in the example this
implies that the scope of participatory or
cooperative ISD should be expanded to involve
the users clients as well.
5. ISD as a boundary- crossing activity In a m
ore detailed analysis, the core of IS development
can be seen as a temporary activity at the border
of two departments, companies or other
organizations (Figure 8). The starting point or
object of the IS D activity is a problem in the
users work process a need
for better facilities. If the users or their
management regard that the problem can be
solved by some new IT facilities, at least to some
extent, then the users management will usually
set up a project, i. e. an ISD activity, to study and
solve the problem. There is thus a loop of
relations between the IS use and IS development
activities the former provides the object

(requirements) for the latter , and receives the

outcome of the latter as new means for itself.
Similarly, the IS users need their improved
facilities to address problem s in their clients
activities. The clients activity implies what kind of
facilities the users will need.

4.5

SUMMARY
Information System researches and technologists
have built and investigate decision support
system (DSS). You will have to take many global
IT. In all cases, preparation is a must. You have to
distinguish reactive and proactive decisions. A
reactive decision is taken for managing a risk. You
must have to define an emergency procedure.
Check your Progress

Explain foundation of IS.

What are the components of strong health IS.
What is IT?
Explain Foundation of IT.
Information system planning is a orderly means
of assessing the information needs of an
organization
2. Defining the information system architecture,
databases and technologies
3. Organizational missions, objectives and
strategy process inventory
1.
2.
3.
4.
1.

4.6
4.7

Answer to Check Your Progress

FURTHER READING
You can also refer the following books for further

reading.
Power, D.J. a brief history of decision support
system DSSR resources COM, WWW
Keen, P.G.W. Information System and DSS

UNIT-5
DECISION SUPPORT SYSTEMS

Introduction
Unit Structure
5.0 Decision Making Process
5.1 DSS Disadvantages
5.2 DSS Advantages
5.3 Decision-Making process Model 5.4 Decision
Structure
5.5 Components of DSS
5.6 Data Management Subsystem 5.7 Is Security
&amp; Control
5.8 Security and Ethical Challenges 5.9 Summary
5.10 Answer to check Your Progress 5.11
Further Reading

5.0

Decision Making Process

DEFINITION: Decision support systems couple
the intellectual resources of individuals with the
capabilities of the computer to improve the
quality of decisions. It is a computer based
support system for management decision makers
who deal with semi-structured problems.
Decision making is knowing if to decide, then
when and what to
decide. It includes understanding the
consequence of decisions. Decisions are the

means by which the commander translates his

vision of the end state into action. Decision
making is both science and art. Many aspects of
military operationsmovement rates, fuel
consumption, weapons effectsare quantify able
and, therefore, part of the science of war .Other
aspectsthe impact to leadership, complexity of
operations, and uncertainty regarding enemy
intentionsbelong to the art of war. The military
decision-making process (MDMP) is a single,
established, and proven analytical process. The
MD MP
is an adaptation of the Army's analytical approach
to problem solving. The MD MP is a tool that
assists the commander and staff in developing
estimates and a plan. While the formal problemsolving process described in this chapter may
start with the receipt of a mission, and has a sits
goal the production of an order, the analytical
aspects of the MDMP continue at all levels during
operations.
The MDMP helps the commander and his staff
examine a battle field situation and reach logical
decisions. The process helps them apply
thoroughness, clarity, sound judgment, logic, and
professional
knowledge to reach a decision. The full MDMP is a
detailed, deliberate, sequential, and timeconsumingprocessusedwhen adequate planning
time and sufficient staff support are available to
thoroughly examine numerous friendly and

enemy courses of action (COAs). This typically

occurs when developing the commander's
estimate and operation plans (OPLANs), when
planning for an entirely new mission, during
extended operations, and during staff training
designed specifically to teach the MDMP.
The MDMP is the foundation on which planning in
a time-constrained
environment is based. The products created
during the full MDMP can and should be used
during subsequent planning sessions when time
may not be available for a thorough re look, but
where existing METT-T factors have not changed
substantially.
The MDMP relies on doctrine, especially the terms
and symbols (graphics) found in. The use of
approved terms and symbols facilitates the rapid
and consistent assessment of the situation and
creation and implementation of plans and orders
by minimizing confusion over them earnings of
terms and symbols used in the process.
The advantages of using the
complete MDMP instead abbreviating the process
are that
of
It analyzes and compares multiple friendly and
enemy COA s in an attempt to identify the best
possible friendly COA.
It produces the greatest integration,
coordination, and synchronization for an
operation and minimizes the risk of overlooking a

critical aspect of the operation.

It results in a detailed operation order or
operation plan. The disadvantage of using the
complete MDMP is that it is a time-consuming
process.

5.1

DSS Disadvantages
Improving Personal Efficiency
Expediting Problem Solving
Facilitating Interpersonal Communications
Promoting Learning or Training
Increasing Organizational
Control

5.2

DSS Advantages
Design flaws
Inadequate understanding of
task or user
Inadequate modeling of reality
Inadequate understanding of human information
processing constraints
Can promote cognitive biases
Can stop the user from thinking - accept
solution because the computer says so
The military decision-making process has seven
steps. Each step of the process begins with
certain input that builds upon the previous steps.
Each step, in turn, has its own output that drives
subsequent Errors committed early in the process
will impact on later steps.

5.3

Decision-Making Process Model

Estimates go on continuously to provide

important inputs for the MDMP . The commander
and each staff section do estimates. Estimates
are revised when important new information is
received or when the situation changes
significantly. They are conducted not only to
support the planning process but also during
mission execution

Receipt of Mission

NOTE: References to higher headquarters in t his

chapter means the headquarters on help on up,
unless the reference specifically states two
echelons up.
The decision-making process begins with the
receipt or anticipation of a new mission. This can
either come from an order issued by higher
headquarters, or derive from an ongoing
operation. For example, the commander
determines that he has the opportunity to
accomplish his higher commander's intent
significantly different from the original course of
action because of a change in enemy disposition.
This may cause him to plan for a significantly
different course of action. As soon as a new
mission is received, the unit's operations section
is use a warning order to the staff alerting them
of the pending
planning process. Unit SOPs identify who is to
attend, who the alternates are, and where they
should assemble. Providing supporting and
attached units copies of the unit SOP ensures

they will understand what is expected of them

during the process. The staff prepares for the
mission analysis immediately on receipt of a
warning order by gathering the tools needed to
do mission analysis. These include
Higher head quarters order or plan, with
graphics. (When possible, each staff officer
receives a copy of the order or plan to assist in
fully
understanding mission requirements.)
Maps of the area of operations.
Both own and higher head
quarters SOPs.
Appropriate FMs
Any existing staff estimates. Staff officers should
develop a generic list of requirements for
particular types of missions to help them prepare
for the mission analysis process. Staff officers
must constantly update their staff estimates and
other critical information. This information allows
them to develop assumptions that are necessary
the planning process.
Staff officers must be aggressive in obtaining this
information.
Reporting of this information must be a push
system versus a pull system. Subordinate units
must rapidly update their reports as the situation
changes. Good reporting SOPs must be
developed, practiced, and enforced.
Once the new mission is received, the
commander and the staff must do a quick initial

assessment. It is designed optimize the

commander issue of time while preserving time
for subordinate commanders to plan and
complete combat preparations.
This assessment
Determines the time available from mission
receipt mission execution.
Determines the time needed to plan, prepare
for, and execute the mission for own and
subordinate units.
Determines the intelligence preparation of the
battlefield (IPB).
Determines the staff estimates already available
to assist planning.
Additional factors to consider are
Ambient light requirements for planning,
rehears- als, and movement
The staff's experience, cohesiveness, and level
ofrest or stress. The critical product of this
assessment is an initial al- location of available
time. The commander and the staff must balance
the desire for detailed planning against the need
for immediate action. The commander must
provide guidance to subordinate units as early as
possible to allow subordinates them a maximum
time for their own planning and preparation for
operations. This, in turn, requires aggressive
coordination, de confliction, integration, and
assessment of
plans at all levels, both vertically and horizontally.
As a general rule, the commander allocates a

minimum of two-thirds of available time for

subordinate units to conduct their planning and
preparation. This leaves one-third of the time for
the commander and his staff to do their planning.
They use the other two-thirds for their own
preparation.
Time, more than any other factor, determines the
detail with which the staff can plan. Once time
allocation is made, the commander must
determine whether or not to do the
full MDMP , or to abbreviate the process.
The commander then issues is initial guidance
(not to be confused with commander's guidance,
Step15, mission analysis). Although brief, it
includes How to abbreviate the MDMP, if
required.
Initial time allocation.
Liaison officers to dispatch.
Initial reconnaissance obeg in.
Authorized movement.
Additional tasks the commander wants the staff
to accomplish.
The last step in the mission receipt phase is to be
use a warning order
to subordinate and supporting units. This order
must include as a minimum the type of operation,
the general location of the operation, the initial
timeline, and any movement or reconnaissance to
initiate.
Warning orders facilitate parallel planning. Parallel
planning means that's ever all echelons will be

working on their MDMP concurrently. This is

essential to speed up the process for subordinate
units and allow subordinates the maximum time
to conduct their own planning. Parallel planning
relies on accurate and timely warning orders and
a full sharing of information between echelons as
it becomes available.
Parallel planning is a routine procedure for the
MDMP.

Mission Analysis
Mission analysis is crucial to the MDMP. It allows
the commander to begin his battle field
visualization. The result of mission analysis is
defining the tactical problem and beginning the
process of determining feasible solutions. It
consists of 17steps, not necessarily sequential,
and results in the staff normally briefing the
commander. In addition to the staff's mission
analysis, the commander conducts his own
mission analysis so that he has frame of reference
to assess the staff's work.
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The inventory reorder decisions that most
business face are a typical example. Unstructured
decisions involve procedure to follow.
Most decisions related to long term strategy can
be thought of as infrastructure. Most business
decision situations are semi structured that is
some decision procedures can be pre specified
but not enough to lead a definite re commended
decisions. Finally, decisions that are unstructured
are those for which no procedure or rules exist to
guide the decision makers toward the correct
decision.
Therefore, information system must be designed
to produce a variety of information products to
meet the changing needs of decision makes
through an organization. Decision makers at the
operational management level, in contrast, may
depend an management information system to
supply more pre-specified internal reports
emphazing detailed current and historical data
comparisons that support their more structured
responsibilities in day-to- day operations.
STRUCTURED, SEMI-STRUCTURED AND

UNSTRUCTURED DECISIONS

Decision-Making has been described as a process

consisting of 3 phases:
1. Intelligence: searching for conditions that call
for conditions
2. Design: inventing, developing, and analyzing
possible courses of action
3. Choice: selecting a course of action from those
available

Structured Decisions
Routine typically repetitive clearly defined
objectives standard solution methods exist

Examples:
Deciding on an appropriate inventory level
Choosing best investment strategy

Unstructured Decisions
Fuzzy, complex problems No cut- and-dried
solutions None of the decision making phrases
is Structured. Often rely on human intuition

Examples

Planning new services Hiring an executive

Semi-structured
Some but not all of the decision making phases
are structured
Solving requires a combination of applying
standard procedures and some unstructured
elements
Involves subjective and objective elements

Examples

Choosing site for new office location

Hiring a new employee

DSS

5.5

Components of

Database management
system (DBMS)

Software for establishing, updating, and querying

(e.g., managing) a database

Data warehouse

A physical repository where relational data are

organized to
provide clean, enterprise-wide data in a
standardized format

Database

The organizing of files into related units that are

then viewed as a single storage concept. The data
in the database are generally made available to a
wide range of user

Model management
subsystem

Model base management system (MBMS)

Software for establishing, updating, combining,
and so on (e.g., managing) a DSS model base

User interface

The component of a computer system that allows

bidirectional communication between the system
and its user

Knowledge-based management

subsystem
The knowledge-based management subsystem
can support any of the other subsystems or act as

an independent component

Organizational knowledge base

An organization's knowledge repository

5.6

Data Management Subsystem

The data management subsystem is composed
of
DSS database DBMS
Data directory Query facility
The Database
Internal data come mainly
from the transaction system
External
industry
research data, census data, regional employment
data, government regulations, tax
organization's processing
data
include market
data,
rate schedules, and national economic data
Private data can include guidelines used by
specific decision makers and assessments of
specific data and/or situations
Data extraction The process of capturing data
from several sources, synthesizing them,
summarizing them, determining which of them
are relevant, and organizing them, resulting in
their effective integration
Database management system (DBMS)
Software for establishing, updating, and

querying (e.g., managing) a database

Query Facility The (database) mechanism that
accepts requests
for data, accesses them, manipulates them, and
queries them
Directory: A catalog of all the data in a database
or all the models in a model base
Key database and database management
system issues
Data quality Data integration Scalability Data
security

DSS DEVELOPMENTS
Parallel processing hardware and software
technologies have made major inroads in solving
the scalability issue
Web-based DSS have made it easier and less
costly to make decision- relevant information and
model- driven DSS available to users in
geographically distributed locations, especially
through mobile devices
Parallel processing hardware and software
technologies have made major inroads in solving
the scalability issue
Web-based DSS have made it easier and less
costly to make decision- relevant information and
model- driven DSS available to users in
geographically distributed locations, especially
through mobile devices
Artificial intelligence continues to make inroads
in improving DSS
Faster, intelligent search engines

Intelligent agents promise to improve the

interface in areas such as direct natural language
processing and creating facial gestures
The development of ready-made (or nearreadymade) DSS solutions for
specific market segments has been increasing

5.7

IS Security and Control

Information System Controls

Deal with ensuring that the system functions
correctly
Application Controls
Hardware Controls
Failure recovery procedures

Application Controls

Data validation-Input Controls Control totalOutput controls

Data Access control-Storage Controls
Redundant processing-Processing Controls

Hardware Controls

Redundant hardware
UPS Uninterruptible Power
Parity checking memory Error checking
hardware
Fault tolerant computer system
Failure recovery procedures
Backup &amp; Recovery procedures

Disaster recovery plan

Disk back-up with safe storage Computer
system failure service Information System
Security

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Solutions to societal problems
Identify several types of security management
strategies and defenses, and explain how they
can be used to ensure the security of business
applications of information technology
Propose several ways that business managers
and professionals can help to lessen the harmful
effects and increase the beneficial effects
associated with the use of information technology

IT Security, Ethics, and Society

Information technology has both beneficial and
detrimental effects on society and people
Manage work activities to minimize the
detrimental effects of information technology
Optimize the beneficial

effects

Business Ethics
Managers in making decisions day-to-day may
need to address the following ethics questions
Equity Rights
Honesty
Exercise of corporate power

Introduction

There is no question that the use of information

technology in e-business operations presents
major security challenges, poses serious ethical
questions, and affects society in significant ways.
Analyzing F-Secure, Microsoft, GM, and
Verizon We can learn a lot from this case about
the security and ethical issues in business that
arise from the challenges caused by computer
viruses. Take a few minutes to read it, and we will
discuss it (see F-Secure, Microsoft, GM, and
Verizon: The Business Challenge of Computer
Viruses in Section IX).
Business/IT Security, Ethics, and Society The
use of information technology in e-business has
major impacts on society, and thus raises serious
ethical issues in the areas such as:
Crime
Privacy
Individuality Employment Health

Ethical Responsibility of Business

Professionals
As a business end user, you have a responsibility

to promote ethical uses of information technology

in the workplace. These responsibilities include
properly performing your role as a vital human
resource in the e- business system help develop
and use in your organizations. The AITP code
provides guidelines for ethical conduct in the
development and use of in End-users and IS
professionals would live up to their ethical
responsibilities by voluntarily following such For
example; you can be a responsible end user
by:
Acting with integrity
Increasing your professional
competence
Setting high standards of personal performance
Accepting responsibility for your work
Advancing the health, privacy, and general
welfare of the public
Business Ethics: Business ethics
is concerned with the numerous ethical questions
that managers must confront as part of their daily
business decision-making. Managers use several
important alternatives when confronted with
making ethical
decisions on business issues. These include:
Stockholder Theory Holds that managers
are agents of the stockholders, and their only
ethical responsibility is to increase the profits of
the business, without violating the law or
engaging in fraudulent practices.
Social Contract Theory - States that

companies have ethical responsibility to all

members of society, which allow corporations to
exist based on a social contract.
Stakeholder Theory - Maintains that managers
have an ethical responsibility to manage a firm for
the benefit of all of its stakeholders, which are all
individuals and groups that have a stake in or
claim on a company.
Proportionality The good achieved by the
technology must outweigh the harm or risk.
Moreover, there must be no alternative that
achieves the same or comparable benefits with
less harm or risk. Informed Consent Those
affected by the technology should understand and
accept the risks.
Justice The benefits and burdens of the
technology should be distributed fairly. Those who
benefit should bear their fair share of the risks,
and those who do not benefit should not suffer a
significant increase in risk.
Minimized Risk Even it judged acceptable by
the other three guidelines, the technology must
be implemented so as to avoid all unnecessary
risk.
Ethical Guidelines: The Association of
Information Technology Professionals (AITP), is
an organization of professionals in the computing
field. Its code of conduct
outlines the ethical considerations inherent in the
major responsibilities of an IS professional.
Business and end users and IS professionals

would live up to their ethical responsibilities by

voluntarily following such guidelines as those
outlined in the AITP standard. You can be a
responsible end user by:
Acting with integrity
Increasing your professional
competence
Setting high standards of personal performance
Accepting responsibility for your work
Advancing the health, privacy, and general
welfare of the public

5.9

SUMMARY
You will have to take much global decision. In all
cases, preparation is a must. You have to
distinguish reactive and proactive decisions. A
reactive decision is taken for managing a risk. You
must establish a risk assessment. Proactive
decision allows time and studies.
The execution can use the quantitative analysis
and notably the bell curve and the decision trees.
Check your Progress

What are DSS advantages and disadvantages?

Explain about DSS model.
What is Mission analysis?
Explain about Decision Structure.
What is Components of DSS?
Explain about Database
Subsystem.
7. What is Security and control?
8. Explain about security and ethical challenges.
1.
2.
3.
4.
5.
6.

Decision making is the process of selecting

between two or more

5.10

ANSWER TO CHECK YOUR PROGRESS

possible courses of action in response to a single
stimulus.
The major characteristic of the business decision
making are: a) sequential in nature b)
exceedingly complex due to risk
Acceptance means that one meaning for the
message is established must be filed into the
belief system of the individual.
Decision on which text book or journal article
you read about the decision making steps in the
problem solving methodology can be defined as
five, seven, nine or thirteen steps.

5.11

FURTHER READING
You can also refer the following books for further
reading.
Power, D.J. a brief history of decision support
system DSSR resources COM, WWW
Keen, P.G.W. Information System and DSS
MIS by davis and olson