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MM ZC441: Human

Resource Management
BITS Pilani Lecture-1 Date :22/7/17 Total Slides : 43 Swati Alok
Hyderabad Campus
Discuss.

Every manager
is
an
HR manager

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Every manager is an HR
manager

Line manager: A manager who is authorized to direct the


work of subordinates and is responsible for
accomplishing the organizations tasks.
Staff manager :A manager who assists and advises line
managers.

Line employee: an employee involved directly in producing


the companys goods or delivering services
Staff employees are those who support the line function

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Line Managers HRM
Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firms policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees health and physical condition

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BITS Pilani
Hyderabad Campus

Chapter 1 : Understanding the Nature and Scope of Human Resource Management

Chapter 2 : Context of Human Resource Management

Text Book: Human Resource Management: Text and Cases, Tata McGraw Hill, 7th Edition,

by K Aswathappa
Learning Objectives

Introduction
Meaning & Definition of HRM
Scope of HRM
Differences between PM , HRM, IR, HRD
HRM-Functions & Objectives
Why Study HRM?
Harvard HRM Model
External and internal environment impacting HR functions

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What is ManagemenT

The process of deciding how best to use a


businesss resources to produce good or provide
services (achieve the goal)
Men ,Machine, Materials, Methods ,Money
Tactfully: efficiently and effectively
Efficient minimum resource
Effective reach the goal

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Company president summed up:
For many years it has been said that capital is the
bottleneck for developing industry. I dont think this
any longer holds true. I think its the workforce and
the companys inability to recruit and maintain a
good work force that does constitute the bottleneck
for production. I dont know of any project backed
by good ideas and stopped by a shortage of cash. I
do know of industries whose growth has been
partly stopped because they cant maintain an
efficient and enthusiastic labor force and I think this
will hold true even more in future
Introduction

There is unlimited people potential that is untapped

The universal challenge is getting results through people

Acquiring ,developing and maintaining human talent


Building the human capital

Its people that lend competitive advantage

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Definition

HRM refers to acquisition,


development and retentions
of Human Resources in an
organization.

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Caselet-1 Jack Nelsons
Problem
As a new member of the board of directors for a local bank,
Jack Nelson was being introduced to all employees in the
head office. When he was introduced to Ruth Johnson, he
was curious about her work and asked her what her machine
did. Johnson replied that she really did not know what the
machine was called or what it did. She explained that she
had only been working there for only two months. She did,
however, know precisely how to operate the machine.
According to her line manager, she was an excellent
employee.

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Caselet-1

At one of the branch offices the line manager in charge


spoke to Nelson confidentially, telling him that
something was wrong but she did not know what. For
one thing she explained that employee turnover was
high, and no sooner had an employee been put on the
job than another one resigned. With customers to see
and loans to be made, she explained, she had little time
to work with the new employees as they came and went.
All branch line managers hired their own employees
without communication with the head office or other
branches. When an opening developed, the line
manager tried to find a suitable employee to replace the
worker who had quit.

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Caselet-1 Jack Nelsons
Problem

After touring the 22 branches and finding similar problems


in many of them, Nelson wondered what the head office
should or what action should be taken. The organisation
was generally regarded as being a well-run institution
that had grown form 275 to 791 employee during the last
ten years. The more he thought about the matter, the
more puzzled Nelson became. He couldnt quite put his
finger on the problem, and he didnt know whether to
report his findings to the company chairman.

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Caselet-1 Jack Nelsons Problem (What)

What do you think is causing some


of the problems in the bank head
office and branches?

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Caselet-1 Jack Nelsons Problem

There is clearly a problem with communication,


lack of consistency in the policies and procedures of
various locations.
no cohesiveness to the staffing activities of this
organization
Employee commitment low, attrition high

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Model of HRM

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Caselet-1 Jack Nelsons
Problem (How?)

What specific functions


should an HRM department
carry out?

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Operative functions of HR

ACQUIRING: Job analysis, HRP, Recruitment, Selection,


Placement, Induction, Internal Mobility

DEVELOPMENT: Competency profiling, Training and


development, Performance & potential management, Career
management, 360 degree feedback

RETENTION: Job design, Work scheduling, Job evaluation,


Compensation administration, Incentives and benefits, Health,
Safety, Welfare & Industrial Relations

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HRM involves

Flow of people: hiring, promotions, transfers, training and


development ; Developing management system that
promote commitment
Flow of information: keeping organizations in touch with
key external realities, managing internal communication,
designing information technology infrastructure;
Integration : Policies and procedures need to be well
integrated and consistence
Flow of work: Developing practices that foster team work
and employees feel valued and rewarded

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The Harvard Model

Stakeholders Interests
Shareholders
Management
Employee Groups
Government
Community
Unions
HRM Long Term
HR outcomes
Employee Influence Consequences
Commitment
HR flow Individual well being
Competence
Reward systems Organizational well
Situational Factors Congruence
Work systems being
Workforce characteristics Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

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Objectives of HRM (WHY)

Societal objectives
To be ethically & socially responsible to the needs of the
society while minimizing the negative impact of such
demands upon the organization.
Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
Personal objectives
To assist employees in achieving their personal goals in
a manner that their personal goals enhance the
individuals contribution to the organization

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HRM Objectives Supporting Functions
1.Societal 1.Legal compliance
2.Benefits 3.Union-Mgmt
relation
2.Organisational 1.HR Planning
2.Employee relation
3.Selection
4.T &D
5.Appriasal
6.Placement & 7.Assessment
3.Personal 1.T&D
2.Placement
3.Compemsation
4.Assessment

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Model of HRM

TheStakeholders
Harvard Interests
Model
Shareholders
Management
Employee Groups
Government
Community
Unions
HRM Long Term
HR outcomes
Employee Influence Consequences
Commitment
HR flow Individual well being
Competence
Reward systems Organizational well
Situational Factors Congruence
Work systems being
Workforce characteristics Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

BITS Pilani, Hyderabad Campus


Model of HRM

TheStakeholders
Harvard Interests
Model
Shareholders
Management
Employee Groups
Government
Community
Unions
HRM Long Term
HR outcomes
Employee Influence Consequences
Commitment
HR flow Individual well being
Competence
Reward systems Organizational well
Situational Factors Congruence
Work systems being
Workforce characteristics Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

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Environment may be understood as all those forces which
have their bearing on the functioning of HR department

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Forcesofare
Context HRM

General Specific

Political- Legal Customers


Economic Suppliers
Technological Competitors
Socio-Cultural forces Unions

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Political Legal

Legislature (law making body) (parliament, assembly)


executive (law implementing body, government)
, judiciary , (watchdog)

Article 14: equality before law


Article 15: no discrimination
Article 23: no forced labour
Prohibition of child labour, equal wage act, factor act, maternity
leave , workmen compensation, provident fund, gratuity act
etc
Influences recruitment, placement, training, Employee- relations

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Economics

Economic forces income level, purchasing power,


savings, debts, literacy, health, male/female ratio,
population mix etc
All these influences quality of labor which in turn impacts
productivity

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Globalization & implications of
global economy

Tendency of firms to extend their sales , ownership


and manufacturing to newer markets abroad
Worldwide company culture
Worldwide recruiting
Global alliance needs highly trained and devoted staff
Deal with virtual workforce
Outsourcing

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Technology

Technology plays a vital role in HR functions, in order to


make people more intellectual and efficient.
Managing well knowledgeable people - incentives, WLB,
Flexi time, profit sharing
HRIS: managing a virtual workforce
managing employee alienation
training & retraining employees to manage obsolescence.
providing work life balance
Ex: bank installed special software that made CSR to handle customers
inquiries. Seeking to capitalize on new software, bank upgraded CSR jobs.;
gave training , how to sell other services and thereby improved, profitability.
Other bank didnt ; just system helped service rep. Handle few more calls

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Socio- Cultural influence
behaviour of employees

Culture refers to the complex whole which includes


knowledge, belief, art Morales, laws, customs and other
capabilities and habits acquired by an Individual as a member
of society.
Eg: Tata and L& T Tatas culture Hire the right people and let
them free L & Ts culture They are known for their
professional approach

Culture indicates attitude of workers towards work


Time dimensions which influence HRM (past, present, future)
Achievement oriented, effort-reward
Individualistic or collectivism

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Specific environment

Suppliers For HR dept, suppliers are those who provide


human Resources to an organization. Ex: Consulting
firms, training institutes.
Competitors Competition plays significant role in HR
function and Activities. Organization need to groom its
employees through well managed HR planning
programmes to withstand competition
Customers Customers have their own influence on
companies personal Functions . So everybody in the
organization must endeavor to offer products which
gives satisfaction for the money customers pay.

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Specific environment

Unions
A firms personal activities will be influenced by its own
unions as well as the unions of other plants.
A trade union may be understood as association of workers
or management formed to protect their own individual
interest.
All HR activities like recruitment, selection, training,
compensation are carried out in consultation with union
leaders. Eg : The Bokaro steel plant has 68 trade unions.
Calcutta Corporation has about 100 trade unions.

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Models of HRM

TheStakeholders
Harvard Interests
Model
Shareholders
Management
Employee Groups
Government
Community
Unions
Long Term
HRM HR outcomes
Consequences
Employee Influence Commitment
Individual well being
HR flow Competence
Organizational well
Situational Factors Reward systems Congruence
being
Workforce characteristics Work systems Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

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Course Handout

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Course Handout

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Semantics
Semantics HRM vs. PM
Mutuality
Labour management
Legal compliance

HRD and IRM What are they?


Segments of HRM

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Difference between PM and HRM

Personnel Management HRM


Separately negotiated harmonisation
Collective bargaining contracts Individual contract
Many Few
Team work
Division of labour
Manage climate and culture
Reach temporary truce Learning companies
Controlled access to courses wide ranging culture, structural
personnel procedures and personnel strategies.
Labour is treated as a tool which is People are treated as assets to be
expendable and replaceable used for the benefit of an
organisation, its employees and
Interests of the organisation are the society as a whole.
uppermost Mutuality of interests
Precedes HRM Latest in the evaluation of the subject
external internal

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Composition of a HR /
Personnel Department
Owner/Manager

Manager-Personnel Manager-Administration Manager-HRD Manager-IR

Appraisal Training & Development

PR Canteen Medical Welfare Transport Legal

HRP Hiring Grievances Handling Compensation

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IMPORTANCE OF HRM

What can go wrong!


Hire the wrong person
High turnover
People not performing
Waste time with useless interviews
Have your company taken to court because of discriminatory
actions
Have your company cited under occupational safety laws for
unsafe practices
Unfair and inequitable salaries
Lack of training
Commit unfair labor practices

Small mistakes = huge loses

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Summary of Chapter 1-2

HRM includes a set of programmes, functions and


activities designed and implemented to maximise
organisational effectiveness along with employee
growth.
HRM is inclusive of IR, PM and HRD
HRM Harvard Models provide analytical framework for
studying people management
Every manager is HR manager as there is always HR
responsibilities taken by line managers

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Summary of Chapter 1-2

The HRM environment comprises of both external and


internal forces
The external environment consists of political-legal,
economic, technological and cultural factors (PEST)
The internal environment consists of unions, suppliers,
customers , competitors and professional bodies.
The study of environment enables HR experts to
become proactive in their approach to personnel aspects

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Evaluation

No Name Type Durati Weight


on
EC-1 Quiz-I/ Assignment-I Online - 5%

Quiz-II 5%

Quiz-III/ Assignment-II 5%

EC-4 Lab test 10%

EC-2 Mid-Semester Test Closed Book 2 hours 30%

EC-3 Comprehensive Exam Open Book 3 hours 45%

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MM ZC441: Human
Resource Management
BITS Pilani Lecture -2 ; Total slides : 43 ,date: 23 /7/17 Swati Alok
Hyderabad Campus
BITS Pilani
Hyderabad Campus

Chapter 3 : Integrating HR Strategy with Business Strategy


Learning Objectives

Understand Strategic management process


Understand corporate Strategy
Understand Business Strategy
How to align HRM functional strategy with Business
Strategy

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If you dont have a strategy you
will be . . . part of somebody
elses strategy.
- Alvin Toffler

1|4
RoyaltyFree/ Stockdisc/ Getty Images
Definition of strategy
A strategy is the set of actions through which an
organization , develops resources and uses them to
deliver services or products in a way which its users find
valuable, while meeting the financial and other objectives
and constraints imposed by key stakeholders. Most
successful strategies give an organization:
some property that is unique, or at least distinctive;
the means for renewing its competitive advantage as the
environment changes.
Different types of stakeholder
Different stakeholders and objectives
Shareholder dividend + stock price appreciation
Suppliers- predictable orders , bills paid
Creditors- commitment to met on time
Customers- safe products , value for price paid
Employees- fair day pay , benefits
Union- large body of fee paying members
Government- tax revenues

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Strategic management

.
Strategic management: refers to the process of crafting
strategies , their implementation and evaluation of their
effectiveness.
Strategies bridge where the company is now , with
where it wants to be tomorrow.

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Strategic Management
Process
Environmental Scanning
Strategy Formulation
Corporate level
Business unit level
Functional level

Strategy Implementation
Strategy Evaluation

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The Strategic Management Process

External Analysis

opportunities

threats

Identify the

organization's Formulate Implement Evaluate


SWOT Analysis
current mission, goals, Strategies Strategies Results
and strategies

Internal Analysis

strengths

weaknesses

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FIGURE 36 Worksheet for Environmental Scanning

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About Surf excel

Launched in 1954
Oldest detergent used in more then 20 countries
Very strong brand communication
Available in wide variety and product size. (surf excel blue, matic, quick wash, comfort in
5 kg, 2kg, 250grm)
Solid base company of Unilever (HUL) , employee 2lks, operated in 100 countries, $868
m in R&D;
Strong competitors, (tide, nirma, ariel, oxycean, sundry)
Substitute products (liquid detergent, bars)
Lack of control in supply chain mgmt
No famous brand ambassador
High price of product
Changing life style
Applying tactics and surprise
Explore new geographical market
Political effects, economical effect, legislative effect;environmental effect
Chances of price war

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FIGURE 37 SWOT Matrix, with Generic Examples

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l 1-14
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FIGURE 38 Type of Strategy at Each Company Level

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Types of Corporate Strategies

Corporate Strategy Possibilities

Growth Stability Renewal

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1-17
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Concentration Strategy

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Integration Strategy
Corporate-level strategies are primarily directed toward improving a
companys competitive advantage and profitability in its present
business or product line:

Horizontal Integration
The process of acquiring or merging with industry
competitors
Vertical Integration
Expanding operations backward into an industry that
produces inputs for the company or forward into an industry
that distributes the companys products

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Raw-Materials-to-Costumer Value-Added Chain
in the Personal Computer Industry

9 | 21
Full and Taper Integration

9 | 22
Transfer of Competencies at
Philip Morris ( Related diversification)

10 | 23
Sharing Resources at Procter &
Gamble (related Diversification)

10 | 24
Types of Competitive Strategies

Business-Level
Competitive Strategies

Cost leadership Differentiation Focus/Niche

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Business strategies

Strategic Advantage
Uniqueness Perceived Low Cost Position
by the Customer
Strategic Target

Industry wide DIFFERENTIATION OVERALL


COST LEADERSHIP

Particular FOCUS
Segment Only

Source: Porter (1980)

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Functional Strategy
All of the firms activities must be tailored to or
fit the chosen strategy such that the firms
functional strategies support its corporate and
competitive strategies.

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Strategic Human Resource
Management
Formulating and executing Human resource policies
and practices that the company needs to achieve its
strategic aims.
Three approaches to HR strategies:
The best fit Approach: Contingency (environment not
stable, If-then; HR strategy should be based on change in
environment)
Best Practices Approach: One size fits all/circumstances-
Prescriptive in nature
Resource based view: use its resources to create an
environment that is favourable to itself

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Porters Business Unit Strategies

Cost leadership
- HR emphasis on efficient, low-cost production, highly
structured procedures, and discourages creativity and
innovation
Differentiation -
- HR emphasis on innovation, flexibility, and renewal of
the workforce by attracting new talent from other firms
Focus
- HR emphasis would be cross between those described
for low-cost producers and differentiators

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Competitive strategies and work flow
system
strategy structure Design dimensions

Functional High formalization,


centralization, low
Cost leadership complexity
Divisional Moderate complexity,
Market centralization,
differentiation formalization
matrix Low formalization,
Innovative decentralization ,flat
differentiation hierarchy
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Selected HR Strategies That Fit Porters Major
Types of Business Strategies
Business Common Organizational
Strategy Characteristics HR Strategies
Overall Sustained capital investment Efficient production
cost and access to capital Explicit job descriptions
leadership Intense supervision of labor Detailed work planning
Tight cost control requiring Emphasis on technical
frequent, detailed control qualifications and skills
reports Emphasis on job-specific
Low-cost distribution system training
Structured organization Emphasis on job-based pay
and responsibilities Use of performance
Products designed for ease appraisal as a control device
in manufacture

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Selected HR Strategies That Fit Porters Major
Types of Business Strategies
Business Common Organizational
Strategy Characteristics HR Strategies
Differ- Strong marketing abilities Emphasis on innovation
entiation Product engineering and flexibility
Strong capability in basic Broad job classes
research Loose work planning
Corporate reputation for External recruitment
quality or technological Team-based training
leadership Emphasis on individual-
Amenities to attract highly based pay
skilled labor, scientists, or Use of performance
creative people. appraisal as development
tool

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Resource-Based View

Each organization is a collection of


unique resources and capabilities that
provides the basis for its strategy and
that is the primary source of its returns
Experience, knowledge, judgement, risk
taking propensity, wisdom of individuals
etc

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Organizations as bundles of resources
Offices, laboratories, factories, equipment
Physical assets Specialized equipment, important locations

Financial assets Cash flow, cash reserves

Leaders and managers


Human resources Skilled and motivated employees

Patents, research programmes, intellectual property


Intellectual resources Capabilities and competences

Reputational assets Brands, reputation

Alliance partners, supplier networks


Relational resources Governments
Strategy, Resources, Capabilities, and
Competencies
Figure 3.1

3 | 36
Examples of
Firms
Capabilities

337
The Four Criteria of Sustainable Competitive Advantage

Valuable Capabilities Help a firm neutralize threats or


exploit opportunities

Rare Capabilities Are not possessed by many others

Costly-to-Imitate Capabilities Historical: A unique and a valuable


organizational culture or brand name
Social complexity: Interpersonal
relationships, trust, and friendship
among managers, suppliers, and
customers

Nonsubstitutable Capabilities No strategic equivalent


FIGURE 311 Basic Model of How to Align HR Strategy and
Actions with Business Strategy

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FIGURE 39 Southwest Airlines Activity System

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Southwest Airlines

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SHRM involves five phases:

Phase 1: Scan the environment


Phase2: Identify source of competitive
advantage
Phase 3: Identify HR strategies
Phase4: Implement Strategies
Phase 5: Monitor and evaluate HR
strategies

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Summary of Ch-4

Key Terms :
SWOT analysis
Corporate level Strategy ( Growth, stability, Renewal)
Business level Strategy (Cost leadership. Differentiation,
Focus)
Linking or aligning business level strategy with HR
functions
3 approach to HR strategy

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MM ZC441: Human
Resource Management
BITS Pilani Total slides- 77, Date: 28/7/17 Lecture-3 Swati Alok
Hyderabad Campus
BITS Pilani
Hyderabad Campus

Chapter 4 : Human Resource Planning

Chapter 5: Analyzing Work and Designing Jobs


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Hyderabad Campus

Chapter 4 : Human Resource Planning


Human Resource Planning

It is the process of formulating plans to fill future openings


based on
1) projecting open positions
2) deciding whether to fill these with inside or outside
candidates

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Examples of Predicting Labor Demand for a Hotel
Chain with 25 Hotels
A B C
Number Ratio of Employees/ Projected 2018 Labor
of Hotels (Calculated Demand for 32 Hotels
Employees as Column A 25) (Calculated as Column B x 32)
Key Positions
General Manager 25 1.00 32
Resident Manager 9 .36 12
Food/Beverage Dir. 23 .92 29
Controller 25 1.00 32
Asst. Controller 14 .56 18
Chief Engineer 24 .96 31
Director of Sales 25 1.00 32
Sales Manager 45 1.80 58
Convention Mgr. 14 .56 18
Catering Director 19 .76 24
Banquet Manager 19 .76 24
Personnel Director 15 .60 19
Restaurant Mgr. 49 1.96 63
Executive Chef 24 .96 31
Sous Chef 24 .96 31
Exec. Housekeeper 25 1.00 32
Total 379 486
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Examples of Predicting Labor Supply and Required
New Hires for a Hotel Chain
Supply Analysis Supply-Demand Comp.
A B C D E F
% Quit # of Proj. Emp. Proj. Labor Proj.
Present Turnover Left by Demand New Hires in
Emp. by 2018 (A*B) 2018 in 2018 2018
Key Positions
General Manager 38 25 10 15 32 17
Resident Manager 77 9 7 2 12 10
Food/Beverage Dir. 47 23 11 12 29 17
Controller 85 25 21 4 32 28
Asst. Controller 66 14 9 5 18 13
Chief Engineer 81 24 16 8 31 23
Director of Sales 34 25 9 16 32 16
Sales Manager 68 45 30 15 58 43
Convention Mgr. 90 14 13 1 18 17
Catering Director 74 19 14 5 24 19
Banquet Manager 60 19 12 7 24 17
Personnel Director 43 15 6 9 19 10
Restaurant Mgr. 89 49 44 5 63 58
Executive Chef 70 24 17 7 31 24
Sous Chef 92 24 22 2 31 29
Exec. Housekeeper 63 25 16 9 32 23
Total 379 257 122 486 364
HRP Process Environment

Organisational Activities
and Policies

HR Demand
HR Supply Forecast
Forecast

HR Programming

HRP Implementation

Control and Evaluation


of Programme

Surplus
Shortage
Restricted Hiring
Recruitment
Reduced Hours
Selection, etc
VRS, Layoff, etc

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Causes for Demand/supply

External Organizational Workforce


Economics Strategic plans Retirement

Socio-political New ventures resignations


technology Sales & production Terminations
forecast
competitors Budgets Death

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Methods of Demand Estimation

Expert Trend Other


Managerial judgment Extrapolation New venture analysis
Delphi technique Ratio analysis Computer models
Nominal group technique Scatter plots (regression Work study technique
analysis)

Forecasting techniques for estimating future human resource needs

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Methods of Demand
Estimation
NGT: A group decision making technique in which group members are
presented with a problem, each member independently writes
down his /her ideas on the problem. and then each member
presents one idea to the group until all ideas have been
presented. Group ideas are discussed and ranked by having
each member vote for 3-5 most imp.

Delphi technique : It solicits estimates of personnel needs from group


of experts, usually managers. HRP experts act as intermediaries,
summaries various responses and reports the findings back to
experts. Summaries and surveys are repeated until experts opinion
begin to agree. Distinguishing features- absence of interaction
among experts

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Methods of Demand Estimation

TREND ANALYSIS & extrapolation


Study of firms past employment needs over a period of yrs. to predict
future needs
Extrapolation involves extending past rates of change into future
Example: if an average of 20 production workers was hired each month
for past two years, extrapolating that trend into future means that
240 production workers will be added during the upcoming

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Methods of Demand
Estimation

RATIO ANALYSIS
RATIO between output & manpower deployed to
achieve that output is established at a given point
of time
Eg., revenue per employee, sales vol. per salesperson,
service contract per engineer, units produced per
employee, etc.,
A forecasting technique for determining future staff needs
by using ratios between a causal factor and the number of
employees needed.
Assumes that the relationship between the causal factor
and staffing needs is constant

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The Scatter Plot
Scatter plot
A graphical method used to help identify the relationship between two variables.

Size of Hospital Number of


(Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860

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Determining the Relationship Between
Hospital Size and Number of Nurses

Figure 53
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Forecasting & Analyzing HR
Supply
The supply analysis covers:
Existing sources of supply
Internal sources of supply
External sources of supply

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Studying existing supply

HR INVENTORY (2 types)
Skills inventory: describes the skills & knowledge
of non-managerial employees & is used primarily for
making placement & promotion decisions
Management inventory: contains the same
information as in skills inventory, but only for
managerial employees which describes the work
history, strengths, weaknesses, promotion potential,
career goals, no. of employees supevised, training
received, total budget managed, types of
employees supervised

BITS Pilani, Hyderabad Campus


Methods of Forecasting
Internal HR Supply
Inflows and outflows
Turnover rate
Absenteeism rate
Productivity level

BITS Pilani, Hyderabad Campus


Inflows outflows

Gain and losses of personnel for a particular job


Current personnel level- outflows + inflows = Internal supply
Source of inflow = transfer in; promotions in
Sources of outflows = resignations, discharges, demotions, retirements, promotions

BITS Pilani, Hyderabad Campus


Measures for internal supply
forecast
Turnover rate = no. of separations during one year/
average no. of employees during the year * 100
Eg: 25/275 *100= 9.08%

Absence rate = total absence in days over a given period/


total time in days available over a period*100
Eg: team of 5 who works 5 days week, less bank holidays (257)= 1285,
so if 50 days were lost through absence , team absence rate is
50/1285*100= 3.95

BITS Pilani, Hyderabad Campus


Productivity

Any change in productivity too will impact no. of persons


required per unit of output.
Ex:

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Methods of Forecasting
Internal HR Supply
SUCCESSION ANALYSIS & PLANNING
A systematic & deliberate process of identifying, developing
& tracking key individuals within the firm to prepare
them for assuming senior & top-level positions in
future.
It assures a steady flow of internal talent to fill important
openings

BITS Pilani, Hyderabad Campus


SUCCESSION ANALYSIS &
PLANNING

BITS Pilani, Hyderabad Campus


SUCCESSION ANALYSIS & PLANNING: 4 steps

BITS Pilani, Hyderabad Campus


Management
Replacement Chart
Showing Development
Needs of Future
Divisional Vice President

Figure 54
524
Action Decisions in HR
Planning
Strategy HR Initiative

Strategies for Managing Strategies for Managing


Shortages Surplus

Recruit new permanent Hiring freeze


employees Do not replace those who leave
Offer incentives to postpone Offer VRS schemes
retirement Reduce work hours
Re-hire retirees part-time Leave of absence
Attempt to reduce turn-over Across the board pay-cuts
Work current staff overtime Layoffs
Subcontract work to another Reduce outsourced work
company Employee training
Hire temporary employees Switch to variable pay plan
Redesign job process so that fewer Expand operators
employees are needed

BITS Pilani, Hyderabad Campus


Vybhav case HRP

BITS Pilani, Hyderabad Campus


BITS Pilani, Hyderabad Campus
Vybhav case pg 115

23 old company; MNC in 13 countries; workforce 26000,


Verticals: telecommunication s/w; technology products; consumer retail, consumer
electronics, telecommunication services.
HRP at Vybhav is annual- 6 months ahead of start of new year. With tool BIZY
Industry analysis: KPMG, Gartner, trade associations, product-market data, customer
demand analysis
IT division: sales projections is Rs 550 million for coming year..
Its report backs no.of unit to sell, mkting budget, man days required
Past 10 years data ware house..(trend analysis)
Staffing head count targets, budget, attrition rate
HR/staffing/training resources (ratio analysis)
Business workshop happens- 3 days (expert, delphi and NGT techniques)

BITS Pilani, Hyderabad Campus


Summary of Ch-5

HRP involves
Demand forecasting
Identifying supply need
Find the gap if any
Take corrective action
For surplus go for retrenchment, layoff, VRs
For shortage go for recruitment & promotions

BITS Pilani, Hyderabad Campus


BITS Pilani
Hyderabad Campus

Chapter 5
Analyzing Work and Designing Jobs
Learning Objectives

Understand the nature of job analysis and describe the


process of conducting job analysis
Methods for collecting data
Writing job descriptions
Explain what competence-based job analysis is
Understand job design approach

BITS Pilani, Hyderabad Campus


Spilt Liquid Job analysis (caselet)

BITS Pilani, Hyderabad Campus


Caselet summary

Large quantity of liquid split by machine operator on the


floor around the machine
Machine operators job description include keeping
machine in clean operating order
Service worker to assist the operator in various ways
such as getting the tools and materials
Sweeper to execute various cleaning jobs, but his duties
commence after the shift ends.

BITS Pilani, Hyderabad Campus


Job

Job
Generally defined as a set of closely related activities
carried out for pay.

BITS Pilani, Hyderabad Campus


The Nature of Job Analysis

. 435
BITS Pilani, Hyderabad Campus
The Basics of Job Analysis:
Terms
Job Analysis
The procedure through which we determine the duties
of a job (job description) and the characteristics of the
people (job specification) who should be hired for it.
Job Description
A list of a jobs duties, responsibilities, reporting
relationships, working conditions, and supervisory
responsibilities - one product of a job analysis
Job Specifications
A list of a jobs human requirements, that is, the
requisite education, skills, personality and so on - a
product of a job analysis

BITS Pilani, Hyderabad Campus


Defining Relationships

BITS Pilani, Hyderabad Campus


Uses of Job Analysis
Information
Recruitment
and selection

Compensation
Information
Collected via
Job Analysis
Discovering Performance
unassigned duties appraisal

Training

BITS Pilani, Hyderabad Campus


Process of Job Analysis
Steps in doing a job analysis:

1 Collection of Relevant Background Information

2 Selection of Representative Position to be Analysed


Collection of Job Analysis Data/ Information (Analysing
3
Job)
4 Verify the job analysis information

5 Develop a job description and job specification.

BITS Pilani, Hyderabad Campus


Collecting Job Analysis
Information

Methods for Collecting Job Analysis Information

Questionnaires/
Interviews Observations Diaries/Logs
Checklists

BITS Pilani, Hyderabad Campus


Method 1: The Interview

Information Sources
Interview Formats
Individual employees
Structured (Checklist)
Groups of employees
Unstructured
Supervisors with
knowledge of the job
Advantages
Quick, direct way to find
overlooked information
Disadvantage
Distorted information
Method 2: Questionnaires

Information Source Advantages


Have employees fill out Quick and efficient way
questionnaires to describe to gather information
their job-related duties from large numbers of
and responsibilities employees
Questionnaire Formats Disadvantages
Structured checklists Expense and time
Open-ended questions consumed in preparing
and testing the
questionnaire
Job Analysis Questionnaire for Developing Job Descriptions

Note: Use a
questionnaire like
this to interview job
incumbents, or have
them fill it out.
Job Analysis Questionnaire for Developing Job Descriptions (contd)
Example of Position/Job Description Intended for Use Online
Example of Position/Job Description Intended for Use Online (contd)
Method 3: Observation
Information Source
Advantages
Observing and noting the Provides first-hand
physical activities of information
employees as they go Reduces distortion
about their jobs by of information
managers. Disadvantages
Time consuming
Reactivity response distorts
employee behavior
Difficulty in capturing
entire job cycle
Of little use if job involves a
high level of mental activity
Method 4: Participant Diaries/Logs

Information Source Advantages


Workers keep a Produces a more
chronological diary or log complete picture of the job
of what they do and the
Employee participation
time spent on each
activity Disadvantages
Distortion of information
Depends upon employees
to accurately recall their
activities
Quantitative Job Analysis Techniques

Quantitative Job
Analysis

Position Analysis Functional Job


Questionnaire Analysis

BITS Pilani, Hyderabad Campus


Position analysis questionnaire

194 items , grouped into five basic activities:


Decision making/communication
Performed skilled activities
Physical activities
Operating vehicles/equipment
Processing information
------------------------------Scale Used
Extent of use
Importance to the job
Amount of time
Possibility of occurrence
Applicability special code

BITS Pilani, Hyderabad Campus


Portion of a Completed Page from the PAQ

The 194 PAQ elements are


grouped into six dimensions.
This exhibit lists 11 of the
information input questions
or elements. Other PAQ
pages contain questions
regarding mental processes,
work output, relationships
with others, job context, and
other job characteristics.
Functional job analysis

A standardized method by which different jobs can be


quantitatively rated , classified and compared based on data,
people, things scored

What employees need to do to get things done, instead what has


been done.
Ex: bus crew do not carry passenger but drives bus and collect
fares
Data mental resources
Things- physical resource
People- interpersonal resources
Represented by ordinal scale

BITS Pilani, Hyderabad Campus


Levels of Difficulty for Worker Functions in FJA
Sample Report
Based on
Functional job
analysis

Figure 46
454
Writing Job Descriptions
Job
identification

Job Job
specifications summary

Sections of a
Typical Job
Working Description Responsibilities and
conditions duties

Standards of Authority of
performance the incumbent
The Job Description
Job Identification Responsibilities and Duties
Job title: name of job
Date: when the description Major responsibilities and
was written duties (essential functions)
Prepared by: who wrote the
description Decision-making authority
Direct supervision
Job Summary
Budgetary limitations
General nature of the job
Major functions/activities Standards of Performance and
Relationships Working Conditions
Reports to:
What it takes to do the job
Supervises:
Works with:
successfully
Outside the company:
Job summary: Example-
Project manager
To be responsible for the overall direction, coordination,
implementation, execution, control and completion of
specific projects ensuring consistency with company
strategy, commitments and goals.

BITS Pilani, Hyderabad Campus


The Job Description
Relationships (chain of command)
Reports to: employees immediate
supervisor
Supervises: employees that the job
incumbent directly supervises
Works with: others with whom the job holder
will be expected to work and come into
contact with internally.
Outside the company: others with whom
the job holder is expected to work and come
into contact with externally.
. 458
Responsibilities and duties :example

lead the planning and implementation of project


facilitate the definition of project scope, goals and deliverables
define project tasks and resource requirements
develop full scale project plans
assemble and coordinate project staff
manage project budget
manage project resource allocation
plan and schedule project timelines
track project deliverables using appropriate tools
provide direction and support to project team
quality assurance
constantly monitor and report on progress of the project to all stakeholders
present reports defining project progress, problems and solutions
implement and manage project changes and interventions to achieve project
outputs
project evaluations and assessment of results

BITS Pilani, Hyderabad Campus


Writing Job Specifications example
qualification in project management or equivalent
knowledge of both theoretical and practical aspects of
project management
knowledge of project management techniques and tools
direct work experience in project management capacity
proven experience in people management
proven experience in strategic planning
proven experience in risk management
proven experience in change management
proficient in project management software

60
Sample Job Description, Pearson Education
Sample Job Description, Pearson Education
Job Design Approaches

Job Design:
From Specialized
to Enriched Jobs

Job Job Job


Enlargement Rotation Enrichment

BITS Pilani, Hyderabad Campus


Job Rotation

Tasks Tasks
Tasks
Assemble Test
Drill holes
Parts Component

Week 1 Week 2 Week 3

64
BITS Pilani, Hyderabad Campus
Job Enlargement

Employee 1 Employee 2 Employee 3

Tasks Tasks Tasks


Drill holes Drill holes Drill holes
Assemble Parts Assemble Parts Assemble Parts
Test Test Test

65
BITS Pilani, Hyderabad Campus
Job enrichment
Task 2 Ordering
materials
(controlling)
Planning
workload

Drill holes
Task 1 Assemble Parts
(doing) Test

66
BITS Pilani, Hyderabad Campus
Job Characteristics Model

1567
Exhibit 157 Guidelines for Job Redesign

1568
Job Analysis in a Jobless World

Why Managers Are


Dejobbing Their Companies
Dejobbing External factors leading
Broadening the to dejobbing.
responsibilities of the
companys jobs Rapid product and
technological change
Encouraging employee
initiative. Global competition
Internal factors leading to Deregulation,
dejobbing Political instability,
Flatter organizations Demographic changes
Work teams Rise of a service economy
Re-engineering

BITS Pilani, Hyderabad Campus


Job Analysis in a Jobless
World
Competencies
Demonstrable characteristics of a person that enable performance of a job.
in order to perform this job competently, the employee should be able to ..

Competency-based job analysis


Describing a job in terms of the measurable, observable, behavioral
competencies (knowledge, skills, and/or behaviors) an employee must exhibit to
do a job well.

BITS Pilani, Hyderabad Campus


Why Use Competency Analysis?
Support HPWS
Traditional job descriptions (with their lists of specific duties) may
actually backfire if a high-performance work system is the goal.
HPWS encourages employees to work in a self-motivated
manner.

Maintain a strategic focus


Describing the job in terms of the skills, knowledge, and
competencies the worker needs is more strategic.

Measure performance
Measurable skills, knowledge, and competencies are the heart of
any companys performance management process.

471
BITS Pilani, Hyderabad Campus
BITS Pilani, Hyderabad Campus
Vybhav case : pg 161: Competency mapping :
Retail division- Sales Assistants
Form a competency framework task force consisting of
HR manager , sales head, sales supervisor
Questionnaire administered to Sales supervisors to
understand sales assistance behaviors of high
performers, career path, skill needed and also name
list of top performers.
20-25% sales assistants are interviewed, questionnaire
to identify skills needed for the job
HR then meet with top performers to identify the
difference b/w them and mediocre
Observe behaviors of sales assistants while on job
Prepare draft of competencies with descriptions .eg..

Competency Chart
Competencies Definitions

Communication skill
Positive feedback
Delivering results
Delivering customer service

BITS Pilani, Hyderabad Campus


Assign 1-5 level of proficiency there by forming competency dictionary

Level 1 (basic knowledge) Level 2 (intermediate, Level 3 (expert)


Communication skill

Positive feedback

Delivering results
Delivering customer service

BITS Pilani, Hyderabad Campus


Human Resource Management, 5E 77
Human Resource Management, 5E 78
Human Resource Management, 5E 79
Human Resource Management, 5E 80
Human Resource Management, 5E 81
Human Resource Management, 5E 82
)

The Personal Effectiveness Index (For


Associates and Executives

Competency Definition

Technical and Professional expertise Demonstrated knowledge and skills within a particular functional domain.

Teamwork A cooperative attitude between those working together on a task/series of tasks and
jobs

Initiative A preference to act and doing more than what is required or expected

Decision making and Problem solving An ability to select a course of action amongst several alternatives.

Communication An ability to impart or exchange thoughts and ideas orally and in written

Human Resource Management, 5E 83


Required Competencies
Actual level & Gap
KEY TERMS

job analysis
job description
job specifications
organization chart
process chart
diary/log
position analysis questionnaire (PAQ)
Functional Job analysis
job enlargement
job rotation
job enrichment
competency-based job analysis
MM ZC441: Human
Resource Management
BITS Pilani Lecture-4 Total ppt: 51 Date: 30/7/17 Swati Alok
Hyderabad Campus
BITS Pilani
Hyderabad Campus

Chapter-6
Recruiting Human Resources
Learning Objectives

Understand recruitment process


Various recruitment methods
Matching sources with methods
How to make effective advertisement
Recruitment source effectiveness

BITS Pilani, Hyderabad Campus


Cisco Case

Sources : active seekers, passive seekers, senior engineers,


marketing professionals, internet savy manger, people from silicon
valley
Consumer behaviour analysis(market research): how sources
spend free time, websites they visit, how they felt about job hunting
Friend suggestions ; word of mouth, corporate dilbert ; www.
Travelquest .com;
make friends @ Cisco
Profiler tool (Oh No! My boss is coming!
Amazing people- referal program
Convenience for new employee: fast start assign New Buddy; 2
days workshop in Cisco Business essentials

BITS Pilani, Hyderabad Campus


Nature and Purposes of
Recruitment
Recruitment is the process of searching for and
obtaining applicants for jobs
Qualified job candidate is your customer when you are trying to sell
the job to him or her: some key questions to be answered by
everyone involved in recruiting process is
Your target market source;, consumer behaviour; methods;
positioning
Do you treat applicants as your customer
Would applicants describe their visit as positive and pleasant.
What are the most important things the applicant is looking for in a
job,?
Are interview scheduled around the applicants preference?

7
BITS Pilani, Hyderabad Campus
Recruitment process
Recruitment planning (yield ratio; make-buy skill )

Employee requisition

Recruitment

Internal sources External sources

Internal methods External methods

Recruited individuals (prescreening)


8
Recruitment Yield Pyramid

Offer Acceptance
20
Offers/Acceptance (3:2)
Job Offer
30 Interview/Offers (4:3)
Invited for Final
Interview
40
Screening/Invites (5:1)
Invited to Screening
Interview
200
Contacts/Screens (10:1)
Initial Contacts
2000

9
Internal recruitment methods

Source: where qualified candidates are located, such as


college, competitors
Internal source: current employees
Internal methods: job posting ( bulletin board, intranet,
internet, company's online news letter, email alerts)
Employee Referrals
Applicants who are referred to the organization by current
employees
Referral is a cost-effective recruitment program.

10
BITS Pilani, Hyderabad Campus
Internal Sources of Candidates:
Hiring from Within
Advantages Disadvantages
Foreknowledge of Failed applicants
candidates strengths become discontented
and weaknesses
Time wasted
More accurate view of
candidates skills interviewing inside
candidates who will not
Candidates have a
stronger commitment to be considered
the company Inbreeding of the status
Increases employee quo
morale
Less training and
orientation required

. 511
BITS Pilani, Hyderabad Campus
External recruitment sources
Vocational schools
College & universities
Competitors in labour market
Former employees
Unemployed
Military personnel

12
BITS Pilani, Hyderabad Campus
External recruitment methods
Media advertising
Employment agencies
Job fairs
Internships
Walk-in interviews
Event recruiting
E-recruitment
Employee Referrals
Applicants who are referred to the organization by current
employees
Referral is a cost-effective recruitment program.

513
BITS Pilani, Hyderabad Campus
External recruitment methods

Employment agencies: Organization that helps forms


recruit employees and at same time aids individual in
their attempt to locate jobs
Job Fair: recruiting method engaged in by a single
employer or group of employers to attract a large
number of applicants to one location for interviews.
Event recruiting: Recruiters going to events where
individuals the company is seeking to attend. Eg cisco

BITS Pilani, Hyderabad Campus


External recruitment methods
Advertising
The Media: selection of the best medium depends on the
positions for which the firm is recruiting.
Newspapers (local and specific labor markets)
Trade and professional journals
Internet job sites
Marketing programs
Constructing an effective ad
Wording related to job interest factors should evoke the
applicants attention, interest, desire, and action (AIDA) and
create a positive impression of the firm.

15
BITS Pilani, Hyderabad Campus
Designing advertisement
When drafting your recruitment advertisements, bear in mind the following points which are universally applicable job
advertisement should be:
eye-catching (Wherever you advertise, have a bold heading. You can use the job title itself if it sounds impressive or
is unusual..Alternatively, you might prefer to put the name of your company across the top of the advertisement. Do this if it is
both well known and has a good reputation locally or nationally, as appropriate. )
concise (Once the potential applicant has seen the recruitment advertisement, lie must study it. To encourage this, the
text should be brief and to the point. Supply key information as succinctly as possible. Use compact paragraphs and short
sentences. Stick to plain English, avoiding fancy and confusing phrases. If details are not relevant, cut them out. Should your
words not be absolutely clear, change them. Otherwise, the reader will lose interest and look at the next advertisement
instead. )
logical (Similarly, set out the text in a sensible and progressive order (job duties, salary, fringe benefits and so on).
Jumping back and forth to and from different subjects is discouraging. Each paragraph should deal with one, self contained
topic. Every sentence should make one simple point Do not cover the same topic or points again. Never repeat yourself)

humour-free (Although humour can be very effective in some advertising campaigns, steer clear of it in recruitment
advertisements. Most people view job hunting as a serious matter-they could be unemployed with a mortgage to pay and
children to support- and might be alienated by comments which they regard as flippant or patronizing. Also, everyones sense
of humour is different. Funny ha-ha to one person may be funny peculiar to another. )

non-discriminatory (As always, you should avoid discriminating on the grounds of sex, marital status or race. The
presentation and phrasing of your advertisements must not imply that only people of a particular sex, marital status or racial
group should apply for the job. Be especially careful of your job title. Replace the discriminatory Barmaid or Salesman with
Bar Person and Sales Person. Put Typist (Male or Female) and Car Mechanic (Male or Female). Should you use a
personal pronoun, state He/She or He or She? The Equal Opportunities. It is worth adding here that you should encourage
suitable people with disabilities to contact you too. Perhaps add a phrase such as We welcome applications from disabled
persons. This will help to ensure that you are seen as a company which offers fair and equal opportunities to all suitably
qualified applicants.)

16
Help
Wanted Ad

Source: The Miami Herald, March 24, 2004, p. SF. Figure 57


517
Tailoring recruitment methods to sources
External Exte campus inte referrals Headh Profession Employm
source rnal interview rnsh unting al ent
met ip associated agencies
hods

colleges
Competitors/o
ther firms

unemployed

High schools

Human Resource Management, 5E 18


Recruitment cost
Cost per hire= AC+ AF+RB+TC+RE+RC
H
AC- Advertisement cost
AF- agency fees
RB- referral bonus
TC- travel cost
RE- relocation cost
RC- recruiter costs
H- no. of hires

19
BITS Pilani, Hyderabad Campus
Assessing effectiveness of recruitment
source (example)
Source No. of No. of Total cost Turnover Average
employment acceptances after 1 performance
offers year rating at 1
year
College
recruitmen
t
referrals
E-
recruiting

20
BITS Pilani, Hyderabad Campus
Cisco Case

Methods adopted:

Corporate website
Advertisement
Referral program (Amazing people)
Job fair (event recruiting)

BITS Pilani, Hyderabad Campus


Assessing effectiveness of recruitment
source (Cisco)
Source No. of No. of Total cost Turnover Average
employment acceptances after 1 performance
offers year rating at 1
year
Corporate 8000(81%) 66% Reduce by Retention high
website 40% (6.3%)
referrals Twice then Reduction in hiring cycle from 68 days to 45 days
average

22
BITS Pilani, Hyderabad Campus
Summary

Recruitment is sales activity


Yield ratio
Internal source and internal methods
External source and external methods
Mapping of source with method
Cost per hire
Measure of effectiveness of recruitment process

BITS Pilani, Hyderabad Campus


BITS Pilani
Hyderabad Campus

Chapter 7: Selecting Human Resources


Chapter 7
Selecting Human Resources

BITS Pilani, Hyderabad Campus


Learning Objectives

Understand the nature of


selection and appreciate its role
Describe the selection process
Identify new methods of selection
Evaluation of Selection Program

BITS Pilani, Hyderabad Campus


Selection
Selection is the process of picking individuals (out
of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the
organization.
It is the process of differentiating between
applicants in order to identify (and hire) those
with a greater likelihood of success in a job.

27
BITS Pilani, Hyderabad Campus
Why is Careful Selection
important?

The Importance of Selecting


the Right Employees

Legal
Organizational Costs of Recruiting
Obligations and
Performance and Hiring
Liability

BITS Pilani, Pilani Campus


Legal
Obligations and Liability

Negligent hiring ; hiring workers with


questionable backgrounds without proper
safeguards

BITS Pilani, Hyderabad Campus


Selection Decision Outcomes

1030
BITS Pilani, Hyderabad Campus
Selection Process External Environment

Internal Environment

Preliminary Interview

Selection Tests

Employment Interview
Rejected Applicants

Reference and
Background Analysis

Selection Decision

Physical Examination

Job Offer

Employment Contract

Evaluation

31
BITS Pilani, Hyderabad Campus
Basic Testing Concepts
Reliability
The consistency of scores obtained by the same
person when retested with the identical or equivalent
tests.
Are the test results stable over time?
Test validity
The accuracy with which a test, interview, and so on
measures what it purports to measure or fulfills the
function it was designed to fill.
Does the test actually measure what we need for it to
measure?

. 632
BITS Pilani, Hyderabad Campus
Types of validity

Test validity

Criterion
Content validity
validity

33
BITS Pilani, Hyderabad Campus
Types of Validity

Criterion validity : a type of validity based on showing that


scores on the test (predictors) are related to job
performance (criterion)

Content validity: a test that is content valid is one that


contains a fair sample of the tasks and skills actually
needed for the job in question.

BITS Pilani, Hyderabad Campus


How to Validate a Test
Step 1: Analyze the job
Predictors: job specification (KSAOs)
Criterion: quantitative and qualitative measures of job
success
Step 2: Choose the tests
Test battery or single test?
Step 3: Administer the test
Concurrent validation
Current employees scores with current performance
Predictive validation
Later-measured performance with prior scores

635
BITS Pilani, Hyderabad Campus
How to Validate a Test (contd)
Step 4: Relate Test Scores and Criteria
Correlation analysis

Actual scores on the test with actual performance


Expectancy chart

Step 5: Cross-Validate and Revalidate


Repeat Step 3 and Step 4 with a different sample of employees.

636
BITS Pilani, Hyderabad Campus
Selection test

37
BITS Pilani, Hyderabad Campus
Cognitive ability test

38
BITS Pilani, Hyderabad Campus
Job knowledge test

Which gear will turn the same way as the driver?

Source: Reproduced by permission. Copyright 1967, 1969 by The Psychological Corporation, New York, NY. All rights reserved. Authors
note: 1969 is the latest copyright on this test, which is still the main one used for this purpose. Figure 65
639
BITS Pilani, Hyderabad Campus
Personality test

Human Resource Management, 5E 40


BITS Pilani, Hyderabad Campus
Measuring Personality and Interests
Personality tests
Tests that use projective techniques and trait
inventories to measure basic aspects of an applicants
personality, such as introversion, stability, and
motivation.
Disadvantage
Personality testsparticularly the projective type
are the most difficult tests to evaluate and use.
Advantage
Tests have been used successfully to predict
dysfunctional job behaviors and identify successful
candidates for overseas assignments.

641
BITS Pilani, Hyderabad Campus
Interest inventory test

42
BITS Pilani, Hyderabad Campus
Integrity test

43
BITS Pilani, Hyderabad Campus
Structured interview test

44
BITS Pilani, Hyderabad Campus
Work sample test

45
BITS Pilani, Hyderabad Campus
Assessment center ( A set of stimulated tasks or exercise that

candidates (usually for managerial positions) are asked to perform)

Human Resource Management, 5E 46


BITS Pilani, Hyderabad Campus
Physical ability test

47
BITS Pilani, Hyderabad Campus
Other selection Tests
Graphology test is designed to analyse the handwriting of
an individual. It has been said that an individuals
handwriting can suggest the degree of energy, inhibitions
and spontaneity, as well as disclose the idiosyncracies,
and elements of balance and control.
Polygraph tests are designed to ensure accuracy of the
information given in the applications. Department stores,
treasury offices and jewellery shops that is those highly
vulnerable to theft or swindling may find polygraph
tests useful

48
BITS Pilani, Hyderabad Campus
Methods of Interviews

(a) One-to-One Interview

(b) Sequential Interview

(c) Panel Interview

49
BITS Pilani, Hyderabad Campus
Kinds of Interview
Type Type of Questions Field(s) where applicable

Structured A preset checklist of questions Useful for getting valid results


usually asked from all the especially when dealing with
applicants large number of applicants
Unstructured Few planned questions. Applied when interviewer wishes
Questions are framed during the to validate and confirm certain
course of interview facts
Mixed Combination of structured and Realistic approach that yields
unstructured questions. comparable answers plus in-
depth insights.
Behavioural Framing questions for the Useful in exploring personality
hypothetical situation created in make-up, abilities, and other
interview and evaluating on the psychological variables related
basis of solution and approach to employment
offered by applicant
Stressful A series of harsh, rapid fire Useful in assessing candidates
questions intended to upset the for stressful jobs like handling
applicant customer complaints etc.

BITS Pilani, Pilani Campus


Shortcomings of interviews
Absence of reliability
Lack of validity
Biases of interviewers
Common interview problem:
Halo effect: occurs when an interviewer judges an
applicants entire potential for job performance on basis
of single trait, such as how applicant dresses or talks.
Contrast effect :

51
BITS Pilani, Hyderabad Campus
Three Ways to Make the
Interview Useful

Structure the interview to


increase its validity

Making the Carefully choose what sorts of


Interview Useful traits are to be assessed

Beware of committing
interviewing errors

BITS Pilani, Pilani Campus


Creating Effective Interview
Structures
Base questions on actual job duties.
Use job knowledge, situational or behavioral questions, and
objective criteria to evaluate interviewees responses.
Use the same questions with all candidates.
Use descriptive rating scales (excellent, fair, poor) to rate
answers.
If possible, use a standardized interview form.

BITS Pilani, Hyderabad Campus


Sample Interview Evaluation
form

BITS Pilani, Pilani Campus


Background Investigations &
Reference Checks
Investigations and Checks
Reference checks
Background employment checks
Criminal records
Driving records
Credit checks

Why?
To verify factual information provided by applicants.
To uncover damaging information.

BITS Pilani, Hyderabad Campus


Reference & Background Checks

The importance of checking:

40 percent of applicants lie about work histories


and educational backgrounds.
20 percent of applicants falsify credentials and
licenses.
30 percent of applicants make misrepresentations
on their resumes.

Human Resource Management, 5E 56


BITS Pilani, Hyderabad Campus
Reference Checking Form

Source: Society for


Human Resource
Management,
2004. Reproduced
with permission of
Society for Human
Resource
Management in the
Format Textbook
via Copyright
Clearance Center.

BITS Pilani, Hyderabad Campus


Background Investigations and
Reference Checks (contd)

Former Employers

Current Supervisors

Sources of Commercial Credit


Information Rating Companies

Written References

Social Networking Sites

BITS Pilani, Pilani Campus


The Job Offer

Making the job offer:

May be done by phone, letter or in person.


Make arrangements for further conditions:
Physical exam and drug screen.
Discuss salary and benefits:
Avoid quoting an annual salary.
Realistic job preview,

59
BITS Pilani, Hyderabad Campus
Job offer is made through a letter of appointment.
Decency demands that the rejected applicants be informed
about their non-selection.
Contracts of Employment:
Job titles, duties, date of joining, salary, method of
payment, working hours, holidays, notice period.

Human Resource Management, 5E 60


BITS Pilani, Hyderabad Campus
61
BITS Pilani, Hyderabad Campus
Evaluation of selection program

Human Resource Management, 5E 62


BITS Pilani, Hyderabad Campus
KEY TERMS :Please read
notes uploaded
Ability Test
Accept Error
Aptitude Test
Reject error
Behavioral Interview
Content validity
Criterion validity
Halo Effect
Intelligence Test
Concurrent validation
Predictive validation
Reliability

BITS Pilani, Pilani Campus


MM ZC441: Human
Resource Management
BITS Pilani Total ppt: 60 , date: 4/8/17 Lecture-5 Swati Alok
Hyderabad Campus
BITS Pilani
Hyderabad Campus

Chapters to be Covered
Chapter 9: Training, Development and
orientation
Learning Objectives

Understand steps of training


process
Design of training program
Identify methods of training
Evaluation of training
Steps in career development

BITS Pilani, Hyderabad Campus


IBM

BITS Pilani, Hyderabad Campus


TRAINING & DEVELOPMENT

Trainingprovide employees
With specific skills, or
Help correct deficiencies in performance
Activities designed to provide learners with the knowledge and skills needed for
their present jobs

Developmenteffort to provide abilities the


organization will need in the future
Learning that goes beyond todays job and has
more long term focus

8-5
BITS Pilani, Hyderabad Campus
Difference between training &
deveoplemt

6
BITS Pilani, Hyderabad Campus
Steps in the Training Process

The Four-Step Training Process

1 Needs analysis

2 Instructional design
Deciding on objectives of T&D
Designing the measures of success

3 Designing the T&D Programme

4 Implementation

5 Evaluation
7

BITS Pilani, Pilani Campus


Step -1 Analyzing Training
Needs

Training Needs Analysis

Group or Organizational
Analysis Individual Analysis
(Goals of the organization and Performance Appraisal, KSA
trends likely to affect these analysis
goals)

BITS Pilani, Pilani Campus


Need analysis

Task analysis

Employers use task analysis to determine new


employees training needs
It is detailed study of the job to determine what
specific skill- such as soldering (in case of
assembly workers) or interviewing (in case of
supervisor) is required.

9
BITS Pilani, Hyderabad Campus
Task
Analysis
Record
Form

Table 81
2005 Prentice Hall Inc. All rights
810
reserved.
BITS Pilani, Hyderabad Campus
Performance analysis
Verifying there is performance deficiency and determine
whether that deficiency should be rectified through
training or through some other means.
I expect each salespersons to make 10 new contracts per
week, but john average only six
Other plants our size average no more than 2 accidents per
month; we are averaging five

11
BITS Pilani, Hyderabad Campus
Performance analysis

For current employees,


distinguishing between cant do
and wont do problem is heart of
performance analysis.

12
BITS Pilani, Hyderabad Campus
Initiatives to Rectify Performance
Discrepancy Performance Discrepancy

Yes

Is it worth fixing

Yes

Reward/Punishment Obstacles in the


KSA Deficiency Inadequate Feedback
Incongruence System

Yes Yes Yes Yes

Choose Appropriate Change Provide Proper


Remove Obstacles
Remedy Contingencies Feedback

Job Aid

Training

Practice

Change the Job

Transfer or Terminate

13
BITS Pilani, Hyderabad Campus
Competency models
Determine the level at which particular job positions need
to perform (basic level, intermediate level. Advanced
level)
Identify skill gap (mising links)
Identify the training

14
BITS Pilani, Hyderabad Campus
Required competencies

BITS Pilani, Hyderabad Campus


Actual level & gap

BITS Pilani, Hyderabad Campus


Step-2 :Setting training objectives
a description of performance you want learners to be able
to exhibit before you consider them competent

Eg: Given a tool kit and a service manual, the technician


will be able to adjust the registration on this canon
duplicator within 20 minutes according to the
specifications.
(what you want trainees to be able to do, demonstrate or
explain)

17
BITS Pilani, Hyderabad Campus
Setting training objectives

Objective is clear- trainees know exactly


what is expected from them and how will
they be tested
End result is observable and measurable
Action verbs like define, state, justify, select,
indicate, analyze, identify, criticize,
summarize, evaluate, attitude preferred
etc

Human Resource Management, 5E 18


BITS Pilani, Hyderabad Campus
Step-3 Design of Training program

In selecting T & D best methods, trade off exists ie no single


technique is always best, the best methods depends on:
Cost effectiveness (training delivery methods used)
Training objectives (subject area)
Learning principles
Appropriateness of facilities ,time , duration,
environment
Trainees preference and capabilities (skill)
Trainers preference and capabilities (knowledge , skill)

19
BITS Pilani, Hyderabad Campus
Design of Training program (content)
Learning style (principles) and training methods should
match
Learning principles are guidelines to the ways in which
people learn most effectively
More the principles are reflected in trianing , the more
effective training is likely to be

20
BITS Pilani, Hyderabad Campus
Objectives and training methods should match (six training
orientations )
content

field study, internship,


Self study, lecturers,
apprenticeship,
seminars (academic)
understudy (activity)

concept practice
Role play, case studies,
GD, games, skill
building workshop,
sensitivity training,
labs team development,
intragroup
development , process
consultation

21
Learning principles
Participation: leads to motivation, reinforcement ,
learn faster, long lasting; eg-bicycle riding
Repetition: active practice; opportunity to
practice on learned task
Relevance: material learnt during training exp
should have relevance for job situation
Transference : should be able to transfer in
job (training should match job demand)
Feedback : continuous feedback is required
22
The OJT Training Method
On-the-Job Training (OJT) Advantages
Inexpensive
Having a person learn a
Learn by doing
job by actually doing the
No disruption in work
job.
Immediate feedback
Types: Less preparations required
Orientation
Job Instruction
Internship
apprenticeship
Coaching or understudy
Job rotation

23

Human Resource Management (MM ZC441) BITS Pilani, Pilani Campus


Job Instruction Training at UPS

24

Human Resource Management (MM ZC441) BITS Pilani, Pilani Campus


The 25 Most Popular Apprenticeships
According to the U.S. Department of Labor apprenticeship database, the occupations listed below had
the highest numbers of apprentices in 2001. These findings are approximate because the database
includes only about 70% of registered apprenticeship programsand none of the unregistered ones.

Boilermaker Machinist
Bricklayer (construction) Maintenance mechanic (any industry)
Carpenter Millwright
Construction craft laborer Operating engineer
Cook (any industry) Painter (construction)
Cook (hotel and restaurant) Pipefitter (construction)
Correction officer Plumber
Electrician Power plant operator
Electrician (aircraft) Roofer
Electrician (maintenance) Sheet-metal worker
Electronics mechanic Structural-steel worker
Firefighter Telecommunications technician
Tool and die maker

Figure 82
Source: Olivia Crosby, Apprenticeships, Occupational Outlook Quarterly, 46, no. 2 (Summer 2002), p. 5.
825
BITS Pilani, Hyderabad Campus
Managerial on-the-Job Training
Job rotation
Moving a trainee from department to department to
broaden his or her experience and identify strong and
weak points.
Coaching/Understudy approach
The trainee works directly with a senior manager or
with the person he or she is to replace; the latter is
responsible for the trainees coaching.
Action learning
Management trainees are allowed to work full-time
analyzing and solving problems in other departments.

2005 Prentice Hall Inc. All rights


826
reserved.
BITS Pilani, Hyderabad Campus
Off the job -Training Methods

Off the job techniques Advantages


Lecture /seminar No stress, frustration and
Role playing bustle of the workplace
May be exposed to new and
Case study
innovative ideas
Vestibule system
Behavior modeling
Business games
In basket training
Self study
Programmed Instruction

27
BITS Pilani, Hyderabad Campus
Programmed instruction

BITS Pilani, Hyderabad Campus


Programmed Learning

Presenting Providing
Allowing the
questions, facts, feedback on
person to
or problems to the accuracy
respond
the learner of answers

Advantages
Reduced training time
Self-paced learning
Immediate feedback
Reduced risk of error for learner

29

Human Resource Management (MM ZC441) BITS Pilani, Pilani Campus


Training and Development Methods
Case study method
Managers are presented with a description of an
organizational problem to diagnose and solve.
Management game
Teams of managers compete by making
computerized decisions regarding realistic but
simulated situations.
Outside seminars
Many companies and universities offer Web-based
and traditional management development seminars
and conferences.

2005 Prentice Hall Inc. All rights


830
reserved.
BITS Pilani, Hyderabad Campus
Vestibule Training

BITS Pilani, Hyderabad Campus


Sensitivity Training

BITS Pilani, Hyderabad Campus


Role playing
Creating a realistic situation in which trainees assume
the roles of persons in that situation.
Behavior modeling
Modeling: showing trainees the right (or model) way
of doing something.
Role playing: having trainees practice that way
Social reinforcement: giving feedback on the trainees
performance.
Transfer of learning: Encouraging trainees apply their
skills on the job.

2005 Prentice Hall Inc. All rights


833
reserved.
BITS Pilani, Hyderabad Campus
Objectives and training methods should match (six training
orientations )
content

field study, internship,


Self study, lecturers,
apprenticeship,
seminars (academic)
understudy (activity)

concept practice
Role play, case studies,
GD, games, skill
building workshop,
sensitivity training,
labs team development,
intragroup
development , process
consultation

34
BITS Pilani, Hyderabad Campus
Training methods and activities
for which they are used

BITS Pilani, Hyderabad Campus


BITS Pilani, Hyderabad Campus
Learning principles
Participation: leads to motivation, reinforcement ,
learn faster, long lasting; eg-bicycle riding
Repetition: active practice; opportunity to practice on
learned task
Relevance: material learnt during training exp should have
relevance for job situation
Transference : should be able to transfer in job (training
should match job demand)
Feedback : continuous feedback is required

37
BITS Pilani, Hyderabad Campus
Learning principles in different T&D methods
Methods Participat repetition releva transfer Feed
ion nce ence back
Job instruction training yes yes yes yes ST
Job rotation yes sometimes yes ST no
apprenticeships yes sometimes yes ST ST
lecture no no no ST no
Video presentation no no no yes no
Vestibule training yes yes someti yes ST
mes
Role playing yes sometimes somet no ST
times
Case study yes sometimes someti ST ST
mes
simulation yes sometimes ST ST ST
Programmed learning yes yes No yes yes
Laboratory training yes yes no yes
BITS Pilani, Hyderabad Campus
Media used ( T&D delivery systems)
Corporate Universities
Colleges and universities
E Learning

Human Resource Management, 5E 39


BITS Pilani, Hyderabad Campus
Off-the-Job Management Training and
Development Techniques (contd)
Corporate universities
Provides a means for conveniently
coordinating all the companys training
efforts and delivering Web-based
modules that cover topics from strategic
management to mentoring.

840
BITS Pilani, Hyderabad Campus
E- learning
Also known as distributed learning, distance e learning;
online training :form of learning that uses a network for delivery,
interaction or facilitation. The network might include LAN, WAN,
Intranet, internet
Lower costs
Time savings
Flexibility
Faster response
High degree of interactivity

841
BITS Pilani, Hyderabad Campus
E- Learning
Disadvantages:
E-learning is compatible only if organizations has learning
culture(help of senior mgmt, right business model, right
personnel to implement)
E- learning could become boring text based course if not
designed properly
E- learners may experience loneliness

42
BITS Pilani, Hyderabad Campus
IBM training design

BITS Pilani, Hyderabad Campus


Evaluating the Training Effort
Training effects to measure
Reaction of trainees to the program
Learning that actually took place
Behavior that changed on the job
Results that were achieved as a result
of the training

844
BITS Pilani, Hyderabad Campus
Levels of Training Evaluation
Levels Questions being asked Measures

Accidents
Quality
Productivity
Is the Turnover
organisation or Morale
unit better because of Costs
Result Profits
the training?

Performance
Are trainees behaving differently on Appraisal by
the job after training? Are they using superior, peer,
the skills and knowledge they learnt client,
Behaviour
in training? subordinate

Written tests
To what extent do trainees have greater Performance
knowledge or skill after the training tests
programme than they did before? Graded
Learning
simulations

Did the trainees like the programme, the trainers, the


facilities? Do they think the course was useful? What
Questionnaires
improvement can they suggest?
Reaction

45
BITS Pilani, Hyderabad Campus
Level-1 Reaction

BITS Pilani, Hyderabad Campus


Level-2

BITS Pilani, Hyderabad Campus


Chapter 8
Inducting & Placing New Hires

BITS Pilani, Pilani Campus


Chapter Outline

After covering this chapter, you should be able to


understand:
the nature and purpose of orientation and appreciate
its role in HRM.
the different stages in the orientation process in detail.
the problems faced in placement of new hires and
find solutions to solve the issues.

BITS Pilani, Pilani Campus


Orientation: Definition

Systematic and planned introduction of the (new)


employees to their jobs, their co-workers and the
organization.
Also called induction.

BITS Pilani, Pilani Campus


What is induction?

Once an employee is selected and placed on an


appropriate job, the process of familiarizing him with
the job and the organization is known as induction.

Induction is the process of receiving and welcoming


an employee when he first joins the company and
giving him basic information he needs to settle down
quickly and happily and start work.

BITS Pilani, Pilani Campus


Purpose of Orientation

Orientation Helps New


Employees

Know what is
Begin the
Feel welcome Understand the expected in
socialization
and at ease organization work and
process
behavior

BITS Pilani, Pilani Campus


Induction is designed to achieve
the following objectives
To help the new comer to overcome his shyness and overcome his
shyness nervousness in meeting new people in a new environment.
To give new comer necessary information such as location of a caf,
rest period etc.
To build new employee confidence in the organization.
It helps in reducing labor turnover and absenteeism.
It reduces confusion and develops healthy relations in the
organization.
To ensure that the new comer does not form false impression and
negative attitude towards the organization.
To develop among the new comer a sense of belonging and loyalty
to the organization.

BITS Pilani, Pilani Campus


The Orientation Programme

Employee benefit
Job Duties
information

Personnel
Employee Safety measures
policies and
Orientation and regulations
organizational issues

Introductions to Facilities
companys organisation tour

BITS Pilani, Pilani Campus


Topics covered in Employee
Orientation Programme
Topic Sub-Topics
Organizational Issues History of organization
Names & titles of key executives
Employees title & department
Layout of physical abilities
Probation period
Product line or services provided
Overview of production process
Company- rules & policies
Disciplinary regulations
Employee handbook
Safety handbook
Employee Benefits Pay scale, benefits and perks
Vacations & holidays
Rest breaks
Training & education benefits
Counselling
Insurance & Retirement benefits
Rehabilitation policies and programmes

BITS Pilani, Pilani Campus


Topics covered in Employee
Orientation Programme (Contd. )
Topic Sub-Topics
Introduction To supervisor
To trainers
To co-workers
To HR specialist/ Counsellor
Job Duties Job location
Job tasks
Job responsibilities
Job safety requirements
Overview of job
Job objectives
Link with other jobs

BITS Pilani, Pilani Campus


Employee Orientation
Program

BITS Pilani, Hyderabad Campus


MM ZC441: Human
Resource Management
BITS Pilani Lecture-6 12/8/17 Total slides: 56 Swati Alok
Hyderabad Campus
BITS Pilani
Hyderabad Campus

Chapters to be Covered
Chapter 10: Appraising and Managing
Performance
Chapter Outline

After covering this chapter, you should be able to


understand:
the nature of performance appraisal and
compare and contrast it with performance
management
the different stages in appraisal process and
describe each step
Methods of Performance appraisals
Methods of job evaluation

BITS Pilani, Hyderabad Campus


The Appraisal Process

Performance Appraisal is an objective assessment of an


individuals performance against well defined
benchmarks.
Performance Management refers to the entire process of
appraising performances, giving feedback to the
employees, and offering rewards or punishments to
them.

Performance Performance
Job Analysis
Standards Appraisal

4
BITS Pilani, Hyderabad Campus
Uses of Performance Appraisal
Human resource planning - Data must be
available to identify those who have the potential
to be promoted
Recruitment and selection - May be helpful in
predicting the performance of job applicants
Training and development - Point out an
employees specific needs for training and
development
Career planning and development - Essential in
assessing an employees strengths and
weaknesses and in determining the persons
potential

8-5
BITS Pilani, Hyderabad Campus
Uses of Performance Appraisal (Cont.)
Compensation programs - Provide a basis for
rational decisions regarding pay adjustments
Internal employee relations - Used for decisions
in several areas of internal employee relations,
including promotion, demotion, termination,
layoff, and transfer

8-6
BITS Pilani, Hyderabad Campus
Multiple Purposes of Appraisal
Table 10.1. Multiple Purposes of Performance Assessment
General Applications Specific Purpose
Identification of individual needs
Performance feedback
Developmental Uses
Determining transfer and job assignments
Identification of individual strengths and developmental needs
Salary
Promotion
Retention or termination
Administrative Uses/Decisions
Recognition of individual performance
Lay-offs
Identification of poor performers
HR planning
Determining organisation training needs
Evaluation of organisational goal achievement
Organisational Maintenance/Objectives
Information for goal identification
Evaluation of HR systems
Reinforcement of organisational development
Criteria for validation research
Documentation Documentation for HR decisions
Helping to meet legal requirements
Source: Cynthia D. Fisher, et al. Human resource management, Houghton Mifflin, 1997, p.455

7
BITS Pilani, Hyderabad Campus
The Performance Appraisal
Process
Objectives of Performance Appraisal

Establish Job Expectations

Design an Appraisal Programme


Feedback

Appraise Performance

Performance Interview

Use Appraisal Data for Appropriate


Purposes

8
BITS Pilani, Hyderabad Campus
Design Appraisal Programme-
Issues
Formal
Vs
What Informal
Whose
Methods Performanc
? e?

Who are
When to Appraisal
Evaluate?
the
Design
raters?

What to What
Evaluate? Problems?

How to
solve?

BITS Pilani, Hyderabad Campus


Who are the Raters?
(Appraiser)
Immediate Supervisor
Appraisal by Subordinates
Peer Appraisals (in self- managing teams)
Rating Committees (composed of employees immediate
supervisor and 3 or 4 other supervisors/ known
managers)
Self- Ratings
360- degree Feedback

10
BITS Pilani, Hyderabad Campus
What should be rated?
(measuring criteria)
1. Quality
2. Quantity
3. Timeliness
4. Cost Effectiveness
5. Need for supervision
6. Interpersonal Impact
7. Community Service

11
BITS Pilani, Hyderabad Campus
Appraisal model (future
oriented or past oriented)
MBO Future-oriented

Rating Scales
Cost
Accounting Checklists

360 Degree Appraisal


Essay
Assessment Centres

Forced
Choice
ACRs Appraisal
Methods
Forced
Tests and Distribution
Observations

Critical
Field Review Incident

BARS

Psychological Past-oriented
Appraisals

12
BITS Pilani, Hyderabad Campus
When to be rated (appraisal
cycle)
Annual
Semi annual
Quarterly

What is the rating scale


Scale of 1-4
Eg: not met expectations, adequate, competent,
outstanding

BITS Pilani, Hyderabad Campus


Performance Appraisal
methods
Appraisal Methodologies

1 Rating scale 6 Confidential Records

Behaviorally anchored rating scales


2 Checklist 7
(BARS)

3 Paired comparison 8 Management by objectives (MBO)

4 Forced distribution 9 Essay Method

5 Critical incident 10 Merged methods

14
BITS Pilani, Hyderabad Campus
Essay
Brief narrative describing performance
Tends to focus on extreme behavior
Depends heavily on evaluator's writing ability
Comparing essay evaluations might be difficult

8-15
BITS Pilani, Hyderabad Campus
Performance Appraisal Methods
Graphic rating scale
A scale that lists a number of traits and a range of performance for each that is
used to identify the score that best describes an employees level of performance
for each trait.

. 916
BITS Pilani, Hyderabad Campus
Graphic
Rating Scale
with Space
for
Comments

Figure 93
917
BITS Pilani, Hyderabad Campus
Performance
Management Outline

Figure 95a
918
BITS Pilani, Hyderabad Campus
Performance Appraisal Methods
(contd)

Alternation ranking method


Ranking employees from best to worst on a particular trait, choosing highest,
then lowest, until all are ranked.

Paired comparison method


Ranking employees by making a chart of all possible pairs of the employees for
each trait and indicating which is the better employee of the pair.

919
BITS Pilani, Hyderabad Campus
Alternation Ranking Scale

Figure 96
. 920
BITS Pilani, Hyderabad Campus
Ranking Employees by the
Paired Comparison Method

Note: + means better than. means worse than. For each chart, add up the number of
1s in each column to get the highest-ranked employee.
Figure 97
. 921
BITS Pilani, Hyderabad Campus
Critical Incidents
Written records of highly favorable and
unfavorable work actions
Appraisal more likely to cover entire
evaluation period
Does not focus on last few weeks or
months

8-22
BITS Pilani, Hyderabad Campus
Examples of Critical Incidents for
an Assistant Plant Manager

Table 91
923
BITS Pilani, Hyderabad Campus
Behaviorally Anchored Rating Scales
(BARS)
Combines traditional rating scales and
critical incidents methods
Job behaviors derived from critical
incidents described more objectively

8-24
BITS Pilani, Hyderabad Campus
Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship Skill

Source:Walter C.
Borman, Behavior
Based Rating, in
Ronald A. Berk
(ed.), Performance
Assessment:
Methods and
Applications
(Baltimore, MD:
Johns
Hopkins University
Press, 1986), p. 103.

Figure 99
. 925
BITS Pilani, Hyderabad Campus
Management by Objectives (MBO)
Involves setting specific measurable goals with each
employee and then periodically reviewing the progress
made.
1. Set the organizations goals.
2. Set departmental goals.
3. Discuss departmental goals.
4. Define expected results (set individual goals).
5. Performance reviews.

926
BITS Pilani, Hyderabad Campus
Steps in a Typical MBO Program

Develop Action Plans Review Objectives and Give Rewards for


Jointly Set Objectives
to Achieve Objectives Provide Feedback Achieved Objectives

Overall objectives Managers and


and strategies of employees work on
organization action plans together

Objectives allocated to Action plans


divisional and implemented
departmental units

Specific objectives
collaboratively set
with employees

27
BITS Pilani, Hyderabad Campus
360 Degree Feedback

28
BITS Pilani, Hyderabad Campus
Performance Appraisal Methods
(contd)
Forced distribution method
Similar to grading on a curve; predetermined percentages of ratees are placed in
various performance categories.
Example:

15% high performers


20% high-average performers
30% average performers
20% low-average performers
15% low performers

929
BITS Pilani, Hyderabad Campus
Forced distributions
(Pros/cons)
Creates and sustains a high-performance culture
Establishes well-defined consequences.
Makes performance management a corporate
priority
Lets employees know where they stand
Be detrimental to morale
Emphasize individual performance at the expense of
team performance
Promote competition

BITS Pilani, Hyderabad Campus


Forced distributions

BITS Pilani, Hyderabad Campus


Culture value

BITS Pilani, Hyderabad Campus


Advantages and Disadvantages of Appraisal Tools

Table 93
. 933
Basic Concepts in Performance
Management and Appraisal

Performance Appraisal Performance


Management

Setting work An integrated


standards, assessing approach to ensuring
performance, and that an employees
providing feedback to performance supports
employees to and contributes to the
motivate, correct, and organizations
continue their strategic aims.
performance.

34
BITS Pilani, Hyderabad Campus
Performance Management

Performance Management
Is the continuous process of identifying, measuring, and
developing the performance of individuals and teams and aligning
their performance with the organizations goals.

How Performance Management Differs From Performance


Appraisal
A continuous process for continuous improvement
A strong linkage of individual and team goals to strategic goals
A constant reevaluation and modification of work processes

35
BITS Pilani, Hyderabad Campus
Guidelines for Conducting
an Interview

Talk in terms of
Dont get Encourage the Get
objective work
personal person to talk agreement
data

36
BITS Pilani, Hyderabad Campus
Performance appraisal in
Wipro (example)

Parameters Wipro

Appraisal cycle annual system , project based reviews


online system where appraise -appraisal jointly uploads along with
instrument measurement criteria

model follows future oriented MBO model


self appraisal, supervisor apprasial, review by reviewer, review by HR
appriasal flow , performance discussion, developlement pl;an drawn

ratings SAP (significanlty above plan), OP (on plan); BP (below plan)

purpose linked to promotion, not directly linked to reward

BITS Pilani, Hyderabad Campus


Problems in Performance Appraisal
Appraiser discomfort
Lack of objectivity
Halo/horn error
Leniency/strictness
Central tendency
Recent behavior bias
Personal bias
Manipulating the evaluation
Employee anxiety

8-38
Appraiser Discomfort
Performance
appraisal process
cuts into managers
time
Experience can be
unpleasant when
employee has not
performed well

8-39
Lack of Objectivity
In rating scales method, commonly used
factors such as attitude, appearance, and
personality are difficult to measure
Factors may have little to do with
employees job performance
Employee appraisal based primarily on
personal characteristics may place
evaluator and company in untenable
positions

8-40
Potential Rating Scale Appraisal
Problems
Unclear standards
An appraisal that is too open to interpretation.
Central tendency
A tendency to rate all employees the same
way, such as rating them all average.

. 941
A Graphic Rating Scale with Unclear Standards

Note: For example, what exactly is meant by


good, quantity of work, and so forth?

Table 92
942
Halo/Horn Error
Halo error - Occurs when manager
generalizes one positive performance
feature or incident to all aspects of
employee performance resulting in
higher rating
Horn error - Evaluation error occurs
when manager generalizes one
negative performance feature or
incident to all aspects of employee
performance resulting in lower rating
8-43
Leniency/Strictness
Leniency - Giving
undeserved high ratings
Strictness - Being unduly
critical of employees work
performance
Worst situation is when firm
has both lenient and strict
managers and does nothing
to level inequities

8-44
Central Tendency
Error occurs when employees are
incorrectly rated near average or middle of
scale
May be encouraged by some rating scale
systems requiring evaluator to justify in
writing extremely high or extremely low
ratings

8-45
Recent Behavior Bias
Employees behavior often improves and
productivity tends to rise several days or
weeks before scheduled evaluation
Only natural for rater to remember recent
behavior more clearly than actions from
more distant past
Maintaining records of performance

8-46
Personal Bias (Stereotyping)
Managers allow individual differences
such as gender, race or age to affect
ratings they give
Effects of cultural bias, or stereotyping,
can influence appraisals
Other factors Example: mild-mannered
employees may be appraised more
harshly simply because they do not
seriously object to results

8-47
Manipulating the Evaluation
Sometimes, managers control virtually
every aspect of appraisal process and are
in position to manipulate system
Example: Want to give pay raise to certain
employee. Supervisor may give employee
a undeserved high performance evaluation

8-48
Characteristics of Effective Appraisal
System
Job-related criteria
Performance expectations
Standardization
Trained appraisers
Continuous open communication
Conduct performance reviews
Due process

8-49
Job-Related Criteria
Most basic criterion needed in employee
performance appraisals
Uniform Guidelines and court decisions
quite clear on this point

8-50
Performance Expectations
Managers and subordinates must agree
on performance expectations in advance
of appraisal period
If employees clearly understand
expectations, they can evaluate own
performance and make timely adjustments

8-51
Standardization

Firms should use


same evaluation
instrument for all
employees in same
job category who
work for same
supervisor

8-52
Trained Appraisers
Common deficiency in
appraisal systems -
evaluators seldom receive
training on how to conduct
effective evaluations
Training should be ongoing
How to rate employees and
how to conduct appraisal
interviews
8-53
Continuous Open Communication
Employees have strong
need to know how well they
are performing
Good appraisal system
provides highly desired
feedback on continuing
basis
Should be few surprises in
performance review
8-54
Conduct Performance Reviews
Special time should be set for formal
discussion of employees performance
Withholding appraisal results is absurd
Performance review allows them to detect
any errors or omissions in appraisal, or
employee may simply disagree with
evaluation and want to challenge it

2008 by Prentice8-55
Hall
Due Process
Provide employees
opportunity to appeal
appraisal results
Must have procedure
for pursuing
grievances and
having them
addressed objectively

8-56

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