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MANAGING BUSINESS ACTIVITIES TO ACHIEVE RESULTS

Table of Contents
Introduction............................................................................................................................2
LO1- Understand the importance of business processes in delivering outcomes based upon
business goals and objectives.................................................................................................3
LO1-1.1: Evaluate the interrelationship between the different processes and functions of
the organisation......................................................................................................................3
LO1-1.2: justify the methodology to be used to map processes to the organisations goals
and objectives.......................................................................................................................10
LO1-1.3 evaluate the output of the process and the quality gateways.................................11
LO2-2.1: Analyse the reason for Human Resource Planning in Organisation:..................12
LO2-2.2: Stages of Human Resource Planning in Organisation:........................................15
LO2-2.3: Compare Recruitment and Selection Process in Two Organisation:...................17
LO2-2.4: Effectiveness of Recruitment and Selection Process in Two Organisation:.........25
LO3-3.1: Link between motivational theory and reward:....................................................27
LO3-3.2: Process of Job evaluation and other factors determining pay:...............................34
LO3-3.3: Effectiveness of reward system in different context:.............................................37
Recent changes to reward.................................................................................................39
Reward objectives.............................................................................................................39
Views on reward system effectiveness...............................................................................40
LO3-3.4: Methods that used by organization to monitor performance:..............................41
LO4..........................................................................................................................................44
Reference:.............................................................................................................................51

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Introduction
Have you ever heard IKEA before? Im sure you are familiar with this name even though you
may not visited before. Why when people talk about home furnishing normally you will think
of IKEA? Have you ever thought what made IKEA so successful today? Well, if you simply
think that just because of IKEA is a well-known global brand and a lot of people just blindly
follow, Im certain that youre wrong.
This might be a relevant question to you. If youre a customer, would you be willing to pay
higher prices for the same thing? I bet you wouldnt do that. There are many home furnishing
retailers in this world, but what made IKEA became the worlds largest furniture retailer with
more than 235 stores in 24 countries today? No other reason, low prices are one of the
foundation stones of the IKEA concept and help to make customers want to buy from IKEA.
IKEA is a privately held, international home products company that designs and sells readyto-assemble furniture such as beds and desks, appliances and home accessories. The company
is the world's largest furniture retailer. Founded in 1943 by 17-year-old Ingvar Kamprad in
Sweden, the company is named as an acronym comprising the initials of the founders name
(Ingvar Kamprad), the farm where he grew up (Elaterid), and his home parish. IKEA has 300
home furnishing superstores in 35 Countries and was visited by some 583 million shoppers.
IKEAs low priced elegantly designed merchandise displayed in large warehouse stores,
generated sales of $21.2 billion in 2008, up from 4.4 billion in 1994. The fledgling company
sold fish, charismas magazine, and seeds from his family farm. His first business had been
selling matches, the enterprise Kamprad purchased them wholesale in 100 box lots and then
resold individually at a higher mark up.

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LO1- Understand the importance of business processes in delivering outcomes based upon
business goals and objectives

Business Process
A collection of related, structured activities/tasks that produce a specific service or product
for a particular customer is referred to business process/business method.

Process evaluating of any organization is an important task. By doing so we can understand


how well or how poorly a process is running, it also depicts how the internal and external
processes work to meet the ultimate objectives of the organization. Without this process
evaluation we cannot decide whether the process is suited with the company objectives or
not, or whether there is any need for modification or full change. We cannot also decide in
which direction the organization will be in future days.

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LO1-1.1: Evaluate the interrelationship between the different processes and functions of the
organisation
Executive Summary:The assignment describes the way in which IKEA. Conduct their operations in India and in
International markets. The assignment covers the following topics:
1. Aims and objectives affecting the structure, culture and business processes of IKEA
2. Areas of responsibilities and operational plan of FURNITURE APPLIANCES
3 .Quality control systems and methods to monitor appropriate system to improve
organisational performance at IKEA
4. Health & safety policies at IKEA.
The Purpose and aim of the assignment is

To create new plans which would help IKEA to improve their performance in local

and in International markets


To provide an understanding of the skill in order to manage the activities in the

business workplace so as to improve their effectiveness and efficiency.


To create effective planning, on how the management of IKEA can improve the

business processes.
To give an understanding of how the operational planning skills can give a new looks
so that it leads to the development of the organisation.
To take into account how quality is of core importance in introducing new quality

checks, methods and systems.


To Suggests how health and safety regulations in a workplace can be improved in
better ways.

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INTRODUCTION: IKEA is the Indias largest paint company in the public sector and a quoted company on the
stock exchange at BSE Sensex (code 500820) being its benchmark, which deals in
manufacturing decorative coatings which means that they are into secondary sector who deals
into manufacturing the output of the primary sector. FURNITURE APPLIANCES operates
in 22 countries and has 30 paint manufacturing facilities in the world servicing consumers in
over 65 countries.
IKEA. Has a combined turnover of 830 million US dollars with its strong presence in the
MIDDLE EAST subcontinent, south East Asia, Far East, South pacific Caribbean, Africa &
Europe... Together the group has 30 manufacturing unit globally.
Mission statements are formal declarations of underlying purpose. They say what an
organisation exists to do, Viva Books Private Limited, (2009) Business essential:
Management (1st edition) BPP learning media: London. in relation to the chosen
organisation i.e. IKEA, they have broken down their mission statement in 3 modified steps
and they are as follows:

Missionasstatement
To provide FURNITURE APPLIANCES
per demand, ensuring desired level and
quality of customer (dealer) service, continued availability of the right product mix
of right quality at the right time.

Vision

to become one of the top five FURNITURE APPLIANCES companies worlds wide
by leveraging in the higher growth emerging markets.

Trust Openness
Commitment

Values

Customer satisfaction
Value for money

Quality Growth
Orientation
Integrity

Figure 1.1 the Mission, Vision, & Values of IKEA (www.FURNITURE APPLIANCES .com

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Business objectives of IKEA: -

Targeting a rapid
growth by 10%
in the overseas
market (Egypt,
Carribean)

To introduce a
new innovative
product each
year (R&D
department)

To cut down on
inventory and
Reduce the
number of
rejection level in
making a
product

Business
objectives

To increase sales
in national 2530%&
international
operations 22
-27%.

To improve CRM
in the year 2012

Figure 1.2 Business objectives of IKEA for the year 2011-12 (www.FURNITURE
APPLIANCES .com)
ORGANISATIONAL STRUCUTRE OF IKEA: Wilson and Rosenfeld (1990, p.215) says, The established pattern of relationships between
the component parts of an organisation, outlining both communication, control and authority
patterns. Structure distinguishes the parts of an organisation and delineates the relationship
between them. Organisations are structured in a variety of ways, dependant on their
objectives and culture. The structure of an organisation will determine the manner in which it
operates and its performance. Structure allows the responsibilities for different functions and
processes to be clearly allocated to different departments and employees.
The management of IKEA has adopted a newer organisational structure from the year 2007
leaving behind their tall & formal hierarchical structure where the authority was centralised
and bureaucracy was presented. But it is now the management who has adopted a more
decentralised structure and a flatter (functional) structure which is more flexible in working
and it (functional structure) is arranged according to what each section or department does.
By having this type of organisational structure the problem of communication in the form of
feedback from employees is resolved, also the structure allows cross functioning of

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department which helps in better decision making as well as valuable inputs from the
employees are taken into consideration.
The last but not the least it allows the organisation to delegate task to the lower level that are
willing to take responsibilities and wants to achieve the goals of the firms, which makes the
organisation best suited.
The figure 1.3 and 1.4 below shows both earlier and the recently adopted organisational
structure of IKEA.

Figure 1.3

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ORGANISATIONAL STRUCUTRE OF IKEA


Chairman

Chief Executive/MD
States /INTER STATE Management representatives

Chief GM Operations

DGM Accounts

DGM Logistic

DGM Purchase

DGM Admin
GM FURNITURE Quality assurance

SR MGR Sales Admin


SR Purchase Executive
MGR Excise

EDP Manager

MGR Personnel & Admin


GM Production MGR Maintenance

SR MGR Sales Admin

Figure 1.4 IKEA organisational structure. (Field research)


ENV & Safety Officer / QUALITY ASSURANCE

A business service represents the added value that an organization delivers to its stakeholders. We can make a difference between internal and
external services that a business provides: Internal services mean the added value that is delivered within the domain in which the service
belongs to. External services represent the added value that is delivered to other stakeholders (i.e. customers). A business function is an area that
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the organization wants to pay attention to (e.g. by putting energy into, structurally committing resources to etc.) in order to support its business
goals. A business function can therefore be positioned as a grouping of internal behavior based on a certain criteria (for example location (same
department), communication, required skills, shared resources and shared knowledge). A business function represents a part of the added value
of on organization.

A collection of related, structured activities/tasks that produce a specific service or product for a particular customer is referred to business
process/business method. A business process can be constructed from sub processes or activities. A business process is triggered by one or more
business events. Every activity is part of a business function.

A typical organization has its functions as Administration, Production, Finance & Accounts, Human Resources, Sales and Marketing, Research
and Development etc. Each of these functions needs to work together so that the whole organisation every departments possess same aims and
objectives and contributes towards achieving organizational goal.

As we have defined process as an activities or set of activities of an organization, it is clear from the definition that process of an organization
and functions are related. And each functions of the organization are also related to each other. For example finance prepares a budget for the
organization with the consultation of all functional managers then each department has its own target for the year. Based on the target production

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unit produces the services or goods, after that marketing department has the responsibility to sell the targeted products or services as desired.
And human resource department employ personnel to meet the organizational goal. So from here also we can see that every department is
somewhat linked with each-other.
LO1-1.2: justify the methodology to be used to map processes to the organisations goals and objectives
Process Map
A process map is an instrument to visually describe how the work flows. It can also be referred as a communication tool or planning tool that
helps to manage the organization.
Inputs, Outputs, Activity steps, Decision points, and Functions are the tool for mapping a process. It gives us certain answers like: what is
happening, where it is happening, when it is happening, who is doing it and how inputs and outputs are handled and distributed. So process
mapping basically is a flow chart of an organizational activity. With the help of process mapping we can readily identify what is going on within
the organization at a given point of time and if necessary we can modify the course of action based on the organizational goal and objectives.
Process mapping means creating a model that shows the relationships between different activities, people, data and objects involved in the
production of a specified output. I normally document business processes using the IDEF methodology (The Integrated Definition methodology
is a suite or family of methods that supports a paradigm capable of addressing the modeling needs of an enterprise and its business areas) that
was developed in 1994 by the US air force. It is simply is an accepted industry standard, the advantages of using IDEF are that it is a well
published standard that customers can get from the internet. This methodology is easily assessable and proven as a strong industry standard
supported by most process modeling tools.

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LO1-1.3 evaluate the output of the process and the quality gateways
This type of evaluation is performed while a project is being implemented, with the aim of improving the project design and functioning while in
action. An example given in monitoring and evaluating urban development programs, a handbook for program managers and researchers by
Michael Bamberger, describes a monitoring study that, by way of rapid survey, was able to determine that the amount of credit in a micro credit
scheme for artisans in Brazil was too small. The potential beneficiaries were not participating due to the inadequacy of the loan size for their
needs. This information was then used to make some important changes in the project. Bamberger defines it as an internal project activity
designed to provide constant feedback on the progress of a project, the problems it is facing, and the efficiency with which it is being
implemented.
An evaluation studies the outcome of a project changes in income, housing quality, benefits distribution, cost-effectiveness with the aim of
informing the design of future projects. An example from monitoring and evaluating organizational process for its performance describes an
evaluation of a cooperative program in El Salvador that determined that the cooperatives improved the lives of the few families involved but did
not have a major impact on overall employment.

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Bamberger describes evaluation as mainly used to help in the selection and design of future projects. Evaluation studies can assess the extent to
which the project produced the intended impacts increases in income, better housing quality, and the distribution of the benefits between
different groups, and can evaluate the cost-effectiveness of the project as compared with other options

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LO2-2.1: Analyze the reason for Human Resource Planning in Organisation:


A general human resource plan (HRP) is done by Human Resource Manager or Department. Although there are two categories that HRP may be
divided into: hard and soft. Hard ones are only undertaken by HR specialists. The latter one usually involves HR specialists, line managers
and possibly other staff (Bardwell and Calydon, 2007).
Numerous factors that influence the company are out of its control. However, there are factors that affect directly how companies recruit new
employees. Human resource planning analyses these factors to make sure that the business recruits the most talented candidates when they are
needed.
Importance of Planning
Planning is not as easy as one might think because it requires a concerted effort to come out with a programmer that would easy your work.
Commencing is complicated, but once you start and finish it you have a smile because everything moves smoothly.
Planning is a process that have to be commenced form somewhere and completed for a purpose. It involves gathering information that would
enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the
objectives of the Organization. There are many factors that you have to look into when deciding for an HR Planning programmer.
HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives.
Surprisingly, this aspect of HR is one of the most neglected in the HR field. When HR Planning is applied properly in the field of HR
Management, it would assist to address the following questions:
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1.

How many staff does the Organization have?

2.

What type of employees as far as skills and abilities does the Company have?

3.

How should the Organization best utilize the available resources?

4.

How can the Company keep its employees?

HR planning makes the organization move and succeed in the 21st Century that we are in. Human Resources Practitioners who prepare the HR
Planning programmer would assist the Organization to manage its staff strategically. The programmer assist to direct the actions of HR
department.
The programmer does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve
the objectives as well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part
of Management information system.
HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right
time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of
workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very
critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems.

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Inadequacy of HR Planning
Poor HR Planning and lack of it in the Organization may result in huge costs and financial loses. It may result in staff posts taking long to be
filled. This augment costs and hampers effective work performance because employees are requested to work unnecessary overtime and may not
put more effort due to fatigue. If given more work this may stretch them beyond their limit and may cause unnecessary disruptions to the
production of the Organization. Employees are put on a disadvantage because their live programmers are disrupted and they are not given the
chance to plan for their career development.
The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part
of the Organizations budget, workforce planning enable the Organization to provide HR provision costs. When there is staff shortage, the
organization should not just appoint discriminately, because of the costs implications of the other options, such as training and transferring of
staff, have to be considered.

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LO2-2.2: Stages of Human Resource Planning in Organisation:


Steps in HR Planning
Forecasting
HR Planning requires that we gather data on the Organizational goals objectives. One should understand where the Organization wants to go and
how it wants to get to that point. The needs of the employees are derived from the corporate objectives of the Organization. They stern from
shorter and medium term objectives and their conversion into action budgets (egg) establishing a new branch in New Delhi by January 2006 and
staff it with a Branch Manager (6,000 USD, Secretary 1,550 USD, and two clerical staff 800 USD per month. Therefore, the HR Plan should
have a mechanism to express planned Company strategies into planned results and budgets so that these can be converted in terms of numbers
and skills required.
Inventory
After knowing what human resources are required in the Organization, the next step is to take stock of the current employees in the
Organization. The HR inventory should not only relate to data concerning numbers, ages, and locations, but also an analysis of individuals and
skills. Skills inventory provides valid information on professional and technical skills and other qualifications provided in the firm. It reveals
what skills are immediately available when compared to the forecasted HR requirements.
Audit
We do not live in a static World and our HR resources can transform dramatically. HR inventory calls for collection of data, the HR audit
requires systematic examination and analysis of this data. The Audit looks at what had occurred in the past and at present in terms of labor turn
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over, age and sex groupings, training costs and absence. Based on this information, one can then be able to predict what will happen to HR in the
future in the Organization.
HR Resource Plan
Here we look at career Planning and HR plans. People are the greatest asserts in any Organization. The Organization is at liberty to develop its
staff at full pace in the way ideally suited to their individual capacities. The main reason is that the Organizations objectives should be aligned
as near as possible, or matched, in order to give optimum scope for the developing potential of its employees. Therefore, career planning may
also be referred to as HR Planning or succession planning.

The questions that should concern us are:


a)

Are we making use of the available talent we have in the Organization, and have we can enough provision for the future?

b)

Are employees satisfied with our care of their growth in terms of advancing their career?

Assignment of individuals to planned future posts enable the administration to ensure that these individuals may be suitably prepared in advance.
Auctioning of Plan
There are three fundamentals necessary for this first step.
1) Know where you are going.
2) There must be acceptance and backing from top management for the planning.
3) There must be knowledge of the available resources (i.e.) financial, physical and human (Management and technical).
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Once in action, the HR Plans become corporate plans. Having been made and concurred with top management, the plans become a part of the
companys long-range plan. Failure to achieve the HR Plans due to cost, or lack of knowledge, may be a serious constraints on the long-range
plan

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LO2-2.3: Compare Recruitment and Selection Process in Two Organisation:


TESCO
The number and categories of people required should be specified in the recruitment. Program which is derived from Human resource plan
(A Handbook of Human Resource Management Practice page409- 410) .It means that recruitment is linked with planning.
Is the process of developing a pool of qualified applicants who are interested in working for the organization and from which the
organization might reasonably. Select the best individual or individuals to hire for a job.

(International Students Edition Managing Human

Resource Edition 13 page 183)


To select that kind of individual attraction needed. Ways of attracting right person for the correct job

Walk-ins
Employee referrals
Advertising
Websites
Professional/ Educational/Association
E- recruitment
Word of mouth

Factors considering setting recruitment plan.

Cost
Time taken
Labor market
Mobility of labor
Legislation on gender, race, disability discrimination.
Methods of recruiting

I.
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II.

III.

Job posting
Promoting & transfer
Union through assigning
Retired employees & dependents of deceased
Employee referrals
External
Advertising
Employment agencies
College recruits
Employee referrals
Walk-ins
E-recruitment
Alternative ways
Leasing employees
Overtime
Part time workers
Temporally workers
Out sourcing

Selection is the process of picking individuals who have relevant qualification to fill jobs in an organization.
Selection Process
Concerned with identify the best candidates or candidates for job form among the pool of qualified applicants developed during recruiting
process.
Steps in selection
Medical exam/drug test
Supervisor/team interview
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Back ground investing

Employment testing aptitude ,achievement

Initial interview in HR department

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When we considering about


the
recruitment
process
Tescos the process of recruiting depends on the job that available and mostly internal recruiting
method.

Completion of application

1. As first Tesco looks for Internal Talent plan to fill the vacancies.
2. This process that lists current employees that looking for a move either at same level or
on promotion.
3. If there isnt any suitable person internal management develop a training and
development program.
4. And use internal E-recruitment method to advertises post in Tesco intranet.
5. If external recruitment methods used the advertise in their public web site www.tescocareers.com
6. External vacancy board.
7. Made applicant online for managerial positions.
8. Chosen applicants must have an interview followed by attendance center.
9. People interested in store-based jobs with Tesco can approach store with their CV /
register through job center.
10. The store prepares a waiting list of not selected applicant to make a pool of suitable
recruits in order to call if another vacancy occurs.
11. For harder to fill or more specialist jobs, such as bakers and pharmacists external
recruitment methods used. Like its public web site & offline media, television, radio or
advertising Google or in magazines such as appointment journal.

Selection process

Human Resources planning.

Performance appraisal
Job analysis
Training & development

Basis line management function

Compensation

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Unilever
Recruiters qualification
Recruiting is the process of finding & attracting capable applicants for employment. The process
begins when new recruits are required & ends when their applications are submitted. The result
is a pool of applicants from which new employees are selected.
Manager becomes involves in this process. However in large organization, like the Unilevers
Specialists are often used to find & attract capable analyst they are called recruiters.
First, Unilever is such a big organization that requires huge man power every year for its always
boosting operations in various level and arena. However for common business operations they
need
Three type of manpower
1. Fresh graduates as knowledge worker,
2. Specialist experienced people for special purpose
3. People for Skilled and labor based events
So in our discussion we will focus on all the three types.
Fresh graduates as knowledge worker
Commonly we discuss and learn major about this level recruitment and selection. The fresh
graduates recruitment is in fact the main and major recruitment event for Unilever.
From across the country they get people for their recruitment. The universities in the country
provide the people to be knowledge worker in big organizations like unilever and such. For this
they highly suit the business graduates Passed from reputed business school or institutes both
from country and from abroad.
The discussion is now designed as to the following four terms:
1. Personnel planning and vacancy announcement
2. Nature of Application form
3. Recruiters qualification
4. channels of recruitment
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5. Recruitment- Constraints and challenges


Personnel planning and vacancy announcement
Human Resource department headed by The HRM, receives data about need of personnel, the
vacancy information is then analyzed by HRM in collaboration with the finance department with
financial feasibility of the recruitment. After judging the feasibility the approved number of
vacancies is informed to the job market through strong mass media. As means of media they use
The internet,
Online based job portals
English and bangla news paper
On campus recruitment
From Intern inventory.
Recruiters qualification
Recruitment qualification for entry-level employees:
You must be graduated within less than three years, or will graduate within the next 12 months
form a reputable university.
You must be within 28 years of age.
Recruitment qualification for labor based task:
You must physically fit and skilled in the particular task.
Methods of recruitment
Recruitment channel
Normally we know about two types of recruitment channel those are
1. External recruitment channel
2. Internal recruitment channel
1. External recruitment channel
When job openings cannot be filled internally, the HR department must look outside the
Organization and basically for UBL, recruitment of fresh graduates is done through this means.
There are 8 ways for external recruitment in the UBL, which occurs in direct or indirectly for
various level of recruitment. Those are1. Employee referrals
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2. Advertising
3. Educational institutions & Professional associates
International recruitment
Employee referrals
For lower level workers, Unilever follow the employee referrals procedures. This is the
procedures when existing employees refer one new and the new is considered to be further
judgment.
Advertising
UBL next to employee referrals in fact for fresh graduates majorly follow the advertisement
procedure for recruiting purposes. They advertise in the reputed English and Bengali National
papers. They also use the internet for online application.
Educational institutions & Professional associates
More over the organization takes its manpower from the universities and educational institutions
across the country. The nationwide universities and its important institutes provide the potential
graduates as the employee of the organization.
International recruitment
Sometimes, especially in importance of cases international recruitment occurs in ULB. However
such rare events happen if the candidate stays in abroad or are working in international company
on foreign land.
Internal recruitment channel
Current employees are a major source of recruits for all but entry- level positions of unilever
Bangladesh ltd... Whether for promotions or for lateral job transfers, internal candidates already
know the already informal organization and have detail information about its formal policies. In
fact for unilever this short of recruitment is occurred only with especial purpose experienced
employee recruitment.
Recruitment: constraints and challenges
Recruiters face such common constraints which are:
a. Biasness:
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Most of the time, the organizations employers try to appointment their relatives, familiar person.
b. Competition of talent
There is a lack of vast talent people in Bangladesh for the special task. The potential job
applicants most of the time cant meet up Unilever requirement. Few talent guys who has already
appointed with other multinational company
d. Job requirement
People with greater experience usually require a higher level of job. In our country, there are vast
population but they are not so skilled in working with hard labor.
SELECTION PROCESS IN UNILEVER
Selection is the process of select the best candidates for the job by using various tools and
techniques. In our country, recruitment and selection process work simultaneously. Those are
joined term as employment function of the organization and this employment function is stated
here for Unilevers practices.
Reception of application
After accomplishing the recruitment process, Unilever go to the selection process where they
start the process with the reception of application form filled up through internet online form.
After scrutinizing the data, they select applications for written test.
Employment test
This written test measures the candidates
1. Analytical ability
2. Computation ability
3. Verbal skill
4. Written skill
5. General knowledge
More above 65% marks ensures applicants pass.
Assessing candidate through interview

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Mainly three steps are followed in the selection procedure. In the first stage the candidates are
invited for a viva with sales and training manager, Dhaka in his Gulsan office.A human resource
manager also exist there. In this viva the candidates situation handle ability is measured.

Second phase:
It is the viva with the general sales and operation manager (GOSM), and trade marketing
manager .in this stage individual skill is measured. The question tries to measure out the fitness
of the candidate for the post.
Third phase:
In this stage the applicant face the HRD customer development team (CDT) this phase
Measure the applicability of the applicants potential for the jobs. In these stage why the
Applicant prefers the Unilever and why it would like to join the expected team.
Physical ability test
The physical test is administered by Apollo Hospital Dhaka to measure the HIV, Hepatitis B, C
or such many diseases in its applicants health and fitness for job effort.
Work samples
For some technical jobs Unilever follows the work sample test on particular employee like the
one of Finance and IT.
Hiring decision
Finally the every step success ensures an applicant join in the Unilever family.

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LO2-2.4: Effectiveness of Recruitment and Selection Process in Two Organization:

In the external management recruitment selection process they use few uniform stages.

Vacancies advertised on website and other media, such as national press

Successful candidates invited for interview

Unsuccessful candidates sent letter


uccessful candidates from screening attend Assessment Centre

Successful candidates invited to second interview

Successful candidates sent offer letter and contract

Interview means Face to face conversations between prospective job applicant and
representatives of the organization (International Students Edition Managing the Human
Resources -Page230).Techniques of handling interviews. They are
Situational interviews- applicant is questioned about a particular incident and asks how
he reacts.
Structured interviews-interview to collect information about beliefs, facts attitude and
behaviors. It can present one to one, may be through Internet or telephone. Been directed

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before and scripted the questions what staging standardized interview method so they can
evaluate the candidate.
Unstructured interview- interview to explore wide range the candidate and its nondirective, non-structured and responded led which cover variety of topics through open
questions.
Semi Structured interview- combination of both unstructured and structured to collect
qualitative information about views opinions and experiences by asking open ended and
close ended questions.
Thus Tesco use two interview on screening process there are benefits like

Provide opportunities for interviewers to ask probing questions about the candidates

experience and to explore his suitableness


Enable interviewers to describe the job (a realistic job preview) and the organization in
more detail, suggesting some of the terms of the psychological contract;
Provide opportunities for candidates to ask questions about the job and to clarify issues
concerning training, career prospects, the organization and terms and conditions of
employment;
enable a face-to-face encounter
Give the candidate the same opportunity to assess the organization, the interviewer and
the job. (A Handbook Of Human Resource Management Practice page 440-441)
Using assessment Centre for screening is another effective method that Tesco use.

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LO3-3.1: Link between motivational theory and reward:


Motivation in simple words may be understood as the set of forces that cause people to behave in
certain ways. It is a process that starts with a physiological deficiency or need that activities
behaviour or a drive that is aimed at a goal or an incentive.
The concept of motivation occupies a central place in the discipline of Organizational Behaviour.
It is a concept, which has received the maximum attention from the academicians and
researchers alike. Since a motivated employee is highly productive and highly quality oriented,
the managers are also interested the concept of motivation.
Most people understand the concept of intrinsic satisfaction or intrinsic motivation, i.e. when an
activity is satisfying or pleasurable in and of itself. Naturally, these activities are things we like
and want to do. For most of us, intrinsically enjoyable activities are things like eating, resting,
laughing, playing games, winning, creating, seeing and hearing beautiful things and people,
being held lovingly, having sex, and so on. To do these things we don't need to be paid,
applauded, cheered, thanked, respected, or anything--commonly we do them for the good
feelings we automatically and naturally get from the activity. Intrinsic rewards also involve
pleasurable internal feelings or thoughts, like feeling proud or having a sense of mastery
following

studying

hard

and

succeeding

in

class.

Many, maybe most, activities are not intrinsically satisfying enough to get most of us to do them
consistently, so extrinsic motivation needs to be applied in the form of rewards (positive
reinforcements), incentives, or as a way to avoid some unpleasant condition ("negative
reinforcement" or punishment). Examples: You work doing an ordinary job for pay. You study
for good grades or to avoid failing or to prepare for a good future. You do housework to get a
clean, organized house and/or a spouse's appreciation or to avoid her/his disapproval. A teenager
comes home from a date on time in order to avoid being grounded. These are all activities that
are commonly sustained by external pay offs, not because you love working, studying, cleaning,
and coming home early.

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Are rewards, particularly money rewards, really motivators? The answer to this question is YES
and
NO.
Money is understood to be powerful motivator for more than one reason. In the first place,
money is fundamental for completion of a task. The employee takes pay as the reward for his or
her work, and the employer views it as the price for using the services of the employee. Second,
as a medium of exchange. Third, money is one of the hygiene factors, and improving
maintenance factors is the first step in efforts directed towards motivation. Fourth, money also
performs the function of a score card by which employees assess the value that the organization
places on their services and by which employees can compare their values to others. Fifth,
reinforcement and expectancy theories attest to the value of money as a motivator. Sixth, money
acts as a punctuation in ones life. It is an attention getting and effect producing mechanism.
Money, has therefore tremendous importance in influencing employee behavior. Seventh, money
is easily vulnerable to manipulation. Finally, money will be a powerful motivator for a person
who is tense and anxious about lack o money. But behavioral scientists think otherwise. They
downgrade monetary rewards as a motivator. They prefer, instead, other techniques such as
challenging jobs, goals, participation in decision-making and other non-monetary rewards for
motivating employees.
Types of Reward Systems
The financial rewards are basically of three types:

profit sharing;
job evaluation; and
Merit rating.

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Profit Sharing
Profit sharing could be on a macro basis or on a micro basis. The former relates to the entire
company as a whole and the latter to a particular section or group dealing with a particular
activity and/or product. On a macro level, it would be difficult to identify and reward outstanding
performance. This is possible on a micro level by treating the particular activity as a cost and
profit center by itself. This is easier said than done, since overheads and other common services
have to be charged and this cannot be done completely objectively. The cost allocation in such
cases is somewhat arbitrary and the profit will therefore not be a true reflection of the
performance of that particular group or activity.

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Job Evaluation
In case of job evaluation, the various component factors have to be isolated and evaluated for
purposes of inter-job comparison. Each factor is assigned a rating on the basis of a scale agreed
beforehand by the union and the management joint committee. The total rating for each job then
forms the basis of wage structure. However, there must be a base level, representing, in effect,
the 'minimum wage', depending on the nature of work and the geographical area. In some cases
and in some countries these are stipulated by law. A typical, though somewhat broad, list of job
factors

is

as

follows:

working environment;
physical characteristics;
mental characteristics;
extent of responsibility;
Training and experience.

In case of managers, the factors are:

responsibility;
expertise;
Human relations.

Merit Rating
Merit rating has been used as an indicator of performance. Each employee is rated, typically as
excellent,

good,

average

or

poor,

in

respect

of

the

following

abilities:

communication;
human relations, including leadership and motivation;
intelligence;
judgment;
Knowledge

The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias
of the rater who may be too lenient, may not be objective and may also have favorites or
otherwise in the group being rated.

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Financial Rewards
These rewards in organizations help employees to be more committed and motivated to their job
and working environment:
System rewards are automatically given to all employees for merely being members of their
organisation. System rewards can be defined as being the basic wage rates.
Individual rewards are given to employees based on the quality and quantity of their
performance. Performance related pay (PRP) is seen as an individual reward policy, where pay is
rewarded in relation to the volume of output. PRP can cause divisions amongst workers, where
employees become more worried about the fact that their colleagues are being paid more than
them.
Growth rewards are received by employees for job innovation, learning and improvement.
The key to managing performance through rewards is linking the desired performance with the
appropriate reward.
Non-financial Rewards
In an ever more competitive environment, the aim of organizations must now be to focus on
increasing the added value of their employees. This is achieved, by encouraging employees to
increase their effort and performance higher than the average standards. This has been carried out
using employee appraisals and motivational methods.
Employers have become increasingly aware of the rich potential for good constructive ideas that
exist from the employees on the job experiences. One method for using this knowledge is
through suggestion schemes, these are becoming highly recognized, as they allow for
improvements in all areas of work. These schemes are very flexible and can be readily adapted to
meet all kinds of working conditions. Suggestion schemes can be seen as a means of increasing
profit

and

worker

participation.

Suggestion schemes aim to improve employee attitudes by directing their attention to the
positive and progressive aspects of their jobs. This helps to boost employee morale and increase

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job satisfaction. It can be identified that if an employee is unhappy in his/her job it reflects on a
negative attitude on his/her performance and also with other people.
Experience in many companies has shown low employee morale reflects on low productivity and
increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining
morale.
Another method which is not related to pay is the performance appraisal system. This method is
used as a means of raising individual performance and identifying development needs. Appraisal
systems today are becoming part of the management culture, where managers feel it necessary to
appraise and be appraised.
Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding
any negative feedback from traditional appraisals. Self rating is an effective way of trying to get
the employee to look at what their roles are in relation to business needs.
It is fair to state that employees are not motivated by money alone. Paying different wage rates to
employees doing the same jobs can cause more problems than benefits.
There are other incentives to reward employees, other than financial such as appraisals.
Appraisals can prove to be an effective means for looking at human resources, as they allow us
to:

Ensure that the abilities and energies of individuals are being used effectively.
Allow employers to identify better uses of individuals talents and experience.
Training needs can also be identified.
Future decision making as data of abilities can be kept on file for future reference.

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Other examples of incentives/motivators include:


Team briefings - Management tell sub-ordinates what needs to be achieved, this opens up the
lines of communication, and makes everyone aware of what needs to be done.
Team buildings - Employees are taken on outings to pursue some systematic group exercises led
by a trainer or time spent on social activities. The logic is to enthuse a team working ethic.
Quality circles - Regular meeting sessions where a group of employees discuss quality related
issues.
It can be said that if managers are to be successful, they must focus on strategies that improve the
overall performance of the business by using employees as a vital resource which needs to be
nurtured and not just developing and implementing control systems to fix short term problems.

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LO3-3.2: Process of Job evaluation and other factors determining pay:


Pay determination
In formulating salary offers for employees in new positions (both those new to Brown and those
who are transferred or promoted from within the University), the following considerations are
taken into account: departmental budget; external equity; internal equity and relevant education,
experience and skills. Routinely, salary offers fall within the first quartile of the applicable salary
range for the position's grade level. Recommended salaries must be authorized by the appropriate
Human Resources Representative or Compensation Services prior to discussing with the
candidate. No offer or promise of an offer can be made without authorization by Human
Resources.

External Equity is the term used to describe comparative salaries paid in the marketplace
where Brown competes to hire and retain similar types of employees. Compensation
Services participates in various salary surveys to determine competitive pay practices.

Internal Equity is the term used to describe the comparison of salaries paid to employees
working in the same grade or level within the University (both within the department and
University-wide).
Brown recruits in various markets to fill positions, depending upon the requirements and
level of the position. They are usually as follows:
o Department head level positions and above: national markets
o Professional and administrative positions below department head level: regional
markets
o Support staff and entry level exempt positions: local markets

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Job Evaluation
The job evaluation process established the relative value of jobs throughout the university. There
are two steps involved in this process:
1. Job Analysis and Job Description - Using a "job profile," the content of each job is
analyzed to identify key duties, responsibilities, and qualification necessary to perform
the job. Written job descriptions are then prepared to contain this information.
2. Job Evaluation - A computer assisted job evaluation plan, measuring 17 dimensions of
nonexempt work and 28 dimensions of exempt work, is used to evaluate the relative
worth of staff positions. This evaluation process focuses on valuing the content of each
position in terms of a series of well-defined compensable factors.
The factors for clerical, service, technical, and administrative support positions include:
a. Knowledge: Minimum required level of specialized training, education, and
previous related work experience.
b. Skill: The manual and physical skills required to perform the duties of the
position.
c. Work Complexity: The degree and amount of judgment, initiative and ingenuity
involved in accomplishing work.
d. Contact with Others: The extent to which the work entails dealing with others in
the course of one's regular duties, including the frequency and nature of contacts
and the likely results of such contacts.
e. Property Protection and Use: The extent to which the position has responsibility
for university property, including funds, vehicles and confidential information.
f. Work Leadership: The responsibility for directing, instructing and training
personnel; and for planning controlling and assigning work.
g. Working Environment: The physical conditions encountered during a typical work
day. Conditions such as heat, cold, dirt, fumes, hazards, etc. are considered.
h. Student Relations: The responsibility for dealing with students, including the
nature and frequency of contacts.

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The factors for professional, administrative, and managerial positions include


responsibility for:
i. Programs, Projects or Operations: The level in the organization, scope of activities
performed, parameters of authority, complexity or nature of responsibilities, and
the minimum credentials required to perform the job upon hire.
j. Supervision: The number and variety of employees supervised.
k. Employee Relations: Promoting and maintaining satisfactory human relations,
morale and effectiveness or subordinates.
l. External Contacts: Personally dealing with individuals or organizations outside
the university.
m. Internal Contacts: Personally dealing with individuals within the university, but
outside the direct line of authority of the position, to coordinate activities and task
accomplishment.
n. Investigation or Fact Finding: Activities undertaken to identify facts, and develop
ideas, designs or processes.
o. Scheduling, Planning and Forecasting: The complexity, variety and nature of the
activities involved in determining and carrying out plans and reports.
p. Establishing Objectives, Policies, Standards, Procedures, and Practices: The
degree of authority to establish standards, and the scope, nature and complexity or
these standards.
q. Effects of Decisions: Making decisions and commitments which impact the
university's resources.
r. Student Relations: Personally dealing with students from routine exchanges of
information to more complex activities such as counseling.
At the conclusion of the job evaluation process, the compensable factors are weighted. A
numerical total is then derived and each position is assigned a salary grade which has a salary
range A salary range consists of a:
MINIMUM: The lowest wage paid to a new employee with limited or no experience in this
specific position.
MIDPOINT: The "market" (or average) wage paid to one who is fully qualified.
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MAXIMUM: The highest wage paid for jobs in the salary grade.

LO3-3.3: Effectiveness of reward system in different context:


Reward Systems are a critical part of any organization's design. How well they fit with the rest of
the systems in an organization has an important impact on how effective the organization is and
on the quality of life that people experience in the organization. Over the past decade, some new
reward systems practices have become popular in order to align reward systems with the
important changes that are occurring in the way organizations are designed and managed
(Lawler, 1990; Schuster and Zingheim, 1992).
TYPES OF FINANCIAL REWARD
These rewards in organisations help employees to be more committed and motivated to their job
and working environment:

System rewards are automatically given to all employees for merely being members of
their organisation. System rewards can be defined as being the basic wage rates.

Individual rewards are given to employees based on the quality and quantity of their
performance. Performance related pay (PRP) is seen as an individual reward policy,
where pay is rewarded in relation to the volume of output. PRP can cause divisions
amongst workers, where employees become more worried about the fact that their
colleagues are being paid more than them.

Growth rewards are received by employees for job innovation, learning and
improvement.

The key to managing performance through rewards is linking the desired performance with the
appropriate reward.
NON-FINANCIAL REWARDS NON-FINANCIAL REWARDS
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In an ever more competitive environment, the aim of organisations must now be to focus on
increasing the added value of their employees. This is achieved, by encouraging employees to
increase their effort and performance higher than the average standards. This has been carried out
using employee appraisals and motivational methods.
Employers have become increasingly aware of the rich potential for good constructive ideas that
exist from the employees on the job experiences. One method for using this knowledge is
through suggestion schemes, these are becoming highly recognised, as they allow for
improvements in all areas of work. These schemes are very flexible and can be readily adapted to
meet all kinds of working conditions. Suggestion schemes can be seen as a means of increasing
profit and worker participation.
Suggestion schemes aim to improve employee attitudes by directing their attention to the
positive and progressive aspects of their jobs. This helps to boost employee morale and increase
job satisfaction. It can be identified that if an employee is unhappy in his/her job it reflects on a
negative attitude on his/her performance and also with other people.
Experience in many companies has shown low employee morale reflects on low productivity and
increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining
morale.
Another method which is not related to pay is the performance appraisal system. This method is
used as a means of raising individual performance and identifying development needs. Appraisal
systems today are becoming part of the management culture, where managers feel it necessary to
appraise and be appraised.
Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding
any negative feedback from traditional appraisals. Self rating is an effective way of trying to get
the employee to look at what their roles are in relation to business needs.
A survey was Conducted in mid-2009 by the e-reward survey, undertaken in partnership with the
Institute for Employment Studies, produced up-to-date and revealing information from senior
HR and reward practitioners in 173 UK-based organisations employing around two million
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people. It examines all the main aspects of reward effectiveness and the process of evaluation,
shedding light on this relatively little understood area.
Recent changes to reward

Before considering reward effectiveness in more detail, respondents were asked the
related question of whether they had made changes to any of their key areas of reward in
the last three years. The most widespread changes have been made in three areas: reward
strategy; bonus and incentive plans; and benefits, allowances, flexible benefits and/or
voluntary benefits.

By far the most prominent reason given for such moves is to align with changes in
business strategy/reflect business needs, mentioned by almost seven in ten respondents
(68 per cent). This was followed by three other pressures for change, each mentioned by
around half of respondents: cost/financial pressures, changes driven by the need to
reflect/match

market

practice

and

to

address

identified

weaknesses/shortfalls/ineffectiveness.

Linked to this, respondents were also asked whether their reward function is under
greater pressure to demonstrate the value which they and their reward systems deliver. As
many as 83 per cent say they are, with 24 per cent of the whole sample claiming that such
pressure is quite substantial.

Reward objectives

To provide further context, respondents were asked to outline their most important
reward goals. The three most notable objectives are to align with business strategy;
external competitiveness to recruit and retain; and to pay for performance and
contribution.

Considering all reward objectives, most respondents feel that they are only achieving
these reasonably effectively (71 per cent), compared with just 2 per cent who say they
are highly effective at realising their aims.
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In addition, mirroring a trend found in many replies, those in the public sector tend to be
less satisfied than their private sector counterparts, giving lower ratings to the delivery of
most of their reward objectives.

Views on reward system effectiveness

Underpinning actual reward goals are the systems designed to deliver the various
components of reward and most survey participants believe their arrangements can only
be described as average.

Nevertheless, while most replies are clustered around a middling assessment, responses
are somewhat skewed. A greater proportion of those replying believe their reward
systems are superior to their competitors, although a significant minority report that they
consider their systems to have some key weaknesses or worse.

On a further slight note of optimism, however, 54 per cent of survey respondents say that
their reward systems have improved over the last 12 months, with only 4 per cent
believing that they have worsened. The other 42 per cent reckon that effectiveness
remains unchanged. When asked about the effectiveness of reward systems relating to
their main employee groups, there was not a great deal of difference from the results
relating to the whole sample.

Nevertheless, some small differences emerged. Reward systems for executives and senior
managers are considered marginally more effective than those used for other groups,
while those relating to sales and manual workers are slightly less effective.

Taking a list of 11 specific reward areas everything from reward communications to


share plans ratings for their current effectiveness, when expressed on a scale of between
1 and 10, are clustered around the middle. Overall, however, rankings are skewed
towards the less effective end.

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A number of patterns more generally did emerge. Most notably, reward systems are more
likely to be effective in delivering benefits, especially pensions, while systems relating to
reward communications and recognition plans tend to be less successful.

LO3-3.4: Methods that used by organization to monitor performance:

Once an annual ritual, performance appraisal has become a continuous process by which an
employees understanding of a companys goals and his or her progress toward contributing to
them are measured. Performance measurement is an ongoing activity for all managers and their
subordinates.
Performance measurement uses the following indicators of performance, as well as assessments
of those indicators.
1. Quantity: The number of units produced, processed or sold is a good objective indicator of
performance. Be careful of placing too much emphasis on quantity, lest quality suffer.
2. Quality: The quality of work performed can be measured by several means. The percentage of
work output that must be redone or is rejected is one such indicator. In a sales environment, the
percentage of inquiries converted to sales is an indicator of salesmanship quality.
3. Timeliness: How fast work is performed is another performance indicator that should be used
with caution. In field service, the average customers downtime is a good indicator of timeliness.
In manufacturing, it might be the number of units produced per hour.
4. Cost-Effectiveness: The cost of work performed should be used as a measure of performance
only if the employee has some degree of control over costs. For example, a customer-service
representatives performance is indicated by the percentage of calls that he or she must escalate
to more experienced and expensive reps.
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5. Absenteeism/Tardiness: An employee is obviously not performing when he or she is not at


work. Other employees performance may be adversely impacted by absences, too.
6. Creativity: It can be difficult to quantify creativity as a performance indicator, but in many
white-collar jobs, it is vitally important. Supervisors and employees should keep track of creative
work examples and attempt to quantify them.
7. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a
boundary on creativity. Deviations from policy indicate an employee whose performance goals
are not well aligned with those of the company.
8. Gossip and Other Personal Habits: They may not seem performance-related to the employee,
but some personal habits, like gossip, can detract from job performance and interfere with the
performance of others. The specific behaviors should be defined, and goals should be set for
reducing their frequency.
9. Personal Appearance/Grooming: Most people know how to dress for work, but in many
organizations, there is at least one employee who needs to be told. Examples of inappropriate
appearance and grooming should be spelled out, their effects upon the employees performance
and that of others explained, and corrective actions defined.
Performance indicators must be assessed by some means in order to measure performance itself.
Here are some of the ways in which performance is assessed from the aforementioned indicators.
10. Manager Appraisal: A manager appraises the employees performance and delivers the
appraisal to the employee. Manager appraisal is by nature top-down and does not encourage the
employees active participation. It is often met with resistance, because the employee has no
investment

in

its

development.

11. Self-Appraisal: The employee appraises his or her own performance, in many cases
comparing the self-appraisal to management's review. Often, self-appraisals can highlight
discrepancies between what the employee and management think are important performance
factors and provide mutual feedback for meaningful adjustment of expectations.

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12. Peer Appraisal: Employees in similar positions appraise an employees performance. This
method is based on the assumption that co-workers are most familiar with an employees
performance. Peer appraisal has long been used successfully in manufacturing environments,
where objective criteria such as units produced prevail. Recently, peer appraisal has expanded to
white-collar professions, where soft criteria such as works well with others can lead to
ambiguous appraisals. Peer appraisals are often effective at focusing an employees attention on
undesirable behaviors and motivating change.
13. Team Appraisal: Similar to peer appraisal in that members of a team, who may hold different
positions, are asked to appraise each others work and work styles. This approach assumes that
the teams objectives and each members expected contribution have been clearly defined.
14. Assessment Center: The employee is appraised by professional assessors who may evaluate
simulated or actual work activities. Objectivity is one advantage of assessment centers, which
produce reviews that are not clouded by personal relationships with employees.
15. 360-Degree or Full-Circle Appraisal: The employees performance is appraised by
everyone with whom he or she interacts, including managers, peers, customers and members of
other departments. This is the most comprehensive and expensive way to measure performance,
and it is generally reserved for key employees.
16. MBO (Management by Objectives): The employees achievement of objective goals set in
concert with his or her manager is assessed. The MBO process begins with action statements
such as, reduce rejected parts to 5 percent. Ongoing monitoring and review of objectives keeps
the employee focused on achieving goals. At the annual review, progress toward objectives is
assessed, and new goals are set.
There are as many indicators of performance as there are companies and jobs. The various
assessment methods can be used in combinations. It is important to choose indicators that align
with your companys goals and assessment methods that effectively appraise those indicators.

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LO4
4.1) carry out risk assessments as required by legislation, regulation and organizational
requirements ensuring appropriate action is taken?
Health and Safety legislation can be defined as, organised efforts and procedures for
identifying workplace hazards and reducing accidents and exposure to harmful situations and
substances. It also includes training of personnel in accident prevention, accident response,
emergency preparedness and use of protective clothing and equipment. Business
dicitionary.com (2006) definition of health and safety management [online] (updated on 5 th June
2010)

Available

at:

http://www.businessdictionary.com/definition/health-and-safety-

management.html.
A risk assessment is an essential action in shielding employees for IKEA and its business, also
with act in accordance with the law set by the government. For IKEA it ensures them to remain
focal point which is a subject in workplace- the ones which causes problems.
In some situations simple measures can readily manage risks, for example, promptly cleaned
floors prevents workers from falling on the floor or with safety equipments being constantly
provided with higher and good quality materials from preventing the workers not getting burnt as
well as saving the workers from heat radiation emitted out by the machines.
Also well managed safety standards lay down by the management like fire safety drill every 6
months. All this things brings worth to IKEA. IKEA health and safety department has devised a
five step plan in order to carry out risk assessment in order to ensure that appropriate action is
taken.

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d
h
z
f
r
R
s
e
w
lv
A
D
n
o
u
a
m
&
g
it
ff
p
y
c
jk
b

Figure 4.5 Health safety risk assessment at APL (field work)


The author will give an example to the above diagram so it becomes very clear how risk
assessment takes place in IKEA

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Figure 4.6 Risk Assessment at IKEA (field work)

IKEA further uses the fire alarm system, relevant sign boards such as exit, fire, no smoking,
emergency exit etc. where have been placed to make it easier for employees to know wherein
which device is located. The employees are handed out the health and safety document while
joining the firm and are made acquainted to the health and safety regulations of the firms.

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The author believes that IKEA has enough precautions in their kitty to prevent from health and
safety issues. Therefore the benefits which the firms gains as well the employees and workers
are listed below:-

Reduce
accidents

increased
standards
and
efficiency

improved
employer/
employee
relations

Reduced
insurance
claims

Fewer
compensat
ion claims

improved
uses of
resources

Boost in
productivit
y/profit
Figure 4.7 benefits to IKEA of having health & safety regulations

4.2) demonstrate that health and safety regulations and legislations applicable in specific work
situations are correctly and effectively applied?
The laws do expect every organisation to practice but they have to see the safety of
employees as well as society at large. The author has identified the health and safety legislations
according to the Factories act of 1948 for health and safety and welfare of the workers pertaining
to PAINT Industry.
The author will give laws which are related to the industry which the company operates in as
well as the laws which are specific to the organisation (IKEA )

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Figure 4.8 Health and Safety Regulations apply to IKEA


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MANAGING BUSINESS ACTIVITIES TO ACHIEVE RESULTS

4.3) Carry out a systematic review of organisational health and safety policies and procedures in
order to ensure they are effective and compliant?
In order to carry out a systematic review of organisational health and safety policies and
procedure the author has drawn a health and safety policies which is followed by IKEA

The author believes that IKEA are always ready to accept the change and forge these changes in
their organisation. Evaluating the effectiveness of health and safety regulations it is necessary for
IKEA to know whether they are efficient and compliant enough to practice health and safety
regulation in their organisation.

4.4) Carry out practical applications of health and safety policies and procedures in the
workplace?
The author has given IKEA author views and points of practical application of health and
safety policies which are mentioned in the above diagram no. 4.10, for example the health and
safety law of slip trip and fall, the practical application of the health and safety policy in
workplace could be done by hiring the service of housekeeping company people who comes
during the production hours where the chances of spilling of FURNITURE APPLIANCES
likely to take place therefore with the help of housekeeping firms machine will able to keep the
floors clean which will lead to reducing the number accident.
According to the author the other health and safety policy which needs to practically to be used
is the Work equipment and machinery. The management should have a contract with the current
vendors who are providing the Quarterly reports of the maintenance of the equipments or they
should start bargaining at the point of buying new machinery in the organisation by having an
early contract with vendor for maintenance or replacing old with new machines.
Last but not the least the practical application of Fire and explosion act of health and safety in
IKEA can be done by having monthly fire mock drill which will make the company use the fire
extinguisher, which will prevent it from getting expired and value for money is adhered.

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Reference:

http://smallbusiness.chron.com/methods-used-companies-monitor-employees-computers64671.html
http://www.williamscollege.co.uk/hnd_business_human_resource_mngt.html
Denison, D. R. Corporate Culture and Organizational Effectiveness, New York: Wiley, 1990.
Devries, D. L., Morrison, A. M. Shullman, S. L. and Gerlach, M. L., Performance Appraisal on
the Line, New York: Wiley-Interscience, 1981.
Frost, Carl F., Wakely, John H. and Ruh, Robert A. The Scanlon Plan for Organization and
Development: Identity, Participation, and Equity, Michigan State University Press, 1974.
Galbraith, J. R. and Nathanson, D. A., Strategy Implementation: The Role of Structure and
Process, St. Paul: West, 1978.

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