INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

‘EMPLOYEES ARE THE MOST IMPORTANT ASSET OF THE ORGANIZATION’

 The quality and effectiveness of the organization is determined by the quality of the
people that are employed.
 Success for most organizations depends on finding the employees with the skills to
successfully perform the tasks required to attain the company’s strategic goals.

WHAT IS PERSONNEL/ HUMAN RESOURCE MANAGEMENT?

According to the British “Personnel Management can be defined as “that part of
Institute of Personnel management which is concerned with people at work and with
Management : their relationship within an organization.”
According to American Human Resource Management is that field of management which
Management Association: has to do with planning, organizing and controlling various
operative functions of procuring, developing, maintaining and
utilizing a work force in order that
 the objectives for which the company is established are
attained as efficiently and economically as possible;
 the objectives of all levels of personnel are served to the
highest degree; and
 the objectives of the community are duly considered and
served.”
Human Resource Management is the process of acquiring, training, appraising, and
compensating employees and attending to their labor relations, health and safety, and fairness
concerns.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

 It is concerned with the optimum utilization of the human resources within and
organization.
 It is concerned with the creation of conditions in which each employee is encouraged to
make best possible contribution.
 It is also concerned with the development of the sense of mutual respect and trust
between management and workers through sound relations.
 It endeavors to increase the productive efficiency to the workers through training,
guidance and counseling and
 It tries to raise the morale of the employee.

WHY IS HRM IMPORTANT?

 Service is delivered by people.
 Low quality HR leads to low quality customer service.
 In the 21st century effective knowledge management translates into competitive
advantage and profits.
 Knowledge comes from a firm’s people.

WHAT IS UNIQUE ABOUT HRM?

 HR is multidisciplinary. It applies the disciplines of Economics (wages, markets,
resources), Psychology (motivation, satisfaction), Sociology (organization structure,
culture) and Law (Maternity Benefit Act, Min. Wage Act, Factories Act, IRO, etc.).
 HR is embedded within the work of all managers, and most individual contributors due to
the need of managing people (subordinates, peers and superiors) as well as teams to get
things done.
RESPONSIBILITY FOR HRM
 The responsibility for human resource management activities rest with each MANAGER.
 If a MANAGER does not accept this responsibility then HR activities will only partially get
done.
 HR department provides strategies, systems, tools and support to Managers to ensure
effective staff management!

OUTSTANDING PERSONAL QUALITIES

 A lively intelligence: The personal function demands a marked degree of analytical ability
and great resourcefulness. Good judgment, intellectual honesty, alertness and keen
perception are also ranked high among the desirable mental traits.

 A high degree of freedom from bias: To be truly effective, personnel management

requires of its practitioners an impartial, objective attitude toward management, toward
the workers & toward the society. The personnel managers’ plans, his decisions, his
counsel – all must be dictated by the total requirements of the situations. This implies
sincerity, fearlessness, and above all honesty.

 A compelling Manner: The ability to inspire confidence, to encourage friendliness and to

elicit cooperation and enthusiasm is invaluable to the pioneering effort that will be
required for him.

 Understanding the People: Such understanding includes appreciation of human wants

and aspirations, of individual differences in aptitudes and abilities. It manifests itself in an
increasing effort to provide others with the opportunities, the encouragement and the
motivation of their development.

 A good Executive: He must be organization minded and know how to delegate

assignments. Since personnel departments themselves are often complex and need a
strong executive at the top, his management ability must compare favorably with that of
the other top executives in the company.

 A good salesman: Not the over aggressive type, but the kind who can sell sound
management ideas to employees and interpret labor’s ideas to the employer. Here a
good sense of values is all-important.

 A good Negotiator: He should be able to conduct meetings between management and

labor without letting the arguments come to a boil, able to maintain his own equilibrium
and get a good nights sleep even after spending an entire day at the conference table
with the most arrogant of union leaders.

 He must be a Good Technician: Able to analyze details concerning labor laws,

interpretations and executive orders. Incidentally, he must also have the faculty of
adapting himself gracefully to changed conditions.

 He must have the quality which president Roosevelt once described as a “Passion for
anonymity”. This means that he will not look for opportunities to claim credit, that he will
enjoy engineering a deal for which someone else gets a praise, and that he will consider
the line supervisors the real personnel managers of the company and constantly try to
build them up as such.

 He must be fully conversant with existing labor laws and regulations. He must also know
the language of the people.

HRM for Executives 2

 HRM: FUNCTIONAL COMPONENTS

1. PROCUREMENT …….
 HR Planning
 Job Analysis:
 Job Description
 Job Specification
 Liaison With Sources of Labour
 Recruitment & Selection
 Ref. Investigation
 Employee Socialization & Induction
 Job Changes
 Separation
 Exit Interview

2. TRAINING & DEVELOPMENT…

 Assessing Training Needs (TNA)
 Liaison with Training Institutes for External Courses
 Organizing Courses for Supervisors, Officers & Managers
 Career Planning & Development
 Library

3. MOTIVATION ……
 Job Design
 Performance Appraisal
 Wage & Salary Administration

 Job Evaluation
 Wage & Salary Survey
 Wages Schedule Preparation
 Assists Accounts Deptt. in the Preparation of wage & Salary Bills
 Advices on Formulation of Individual/Group Incentive Plans
 Advices on Formulation of Benefit Plans
 Observance of Statutory Requirement

4. MAINTENANCE……
 Health & Safety

HRM for Executives 3

 HEALTH SAFETY
 Pre-Placement Examination  Protection from:
 Periodic Physical Examination *Occupational Hazards
 First Aid *Fire Hazards
 Health Education  Safety Education & Training
 Sanitation  Investigation of Accidents
 Studies of the Causes &  Safety Rules & Safety
Methods of Eliminating of Job Regulations
Stress & Occupational
 Safety Committee
Diseases
 Safety Equipment & Clothing
 Observance of Statutory Rules

 Employee Relations

 Assists in Negotiation with Unions

 Advices on Formulation of Industrial Relations Policies & Procedures
 Assists Management in:
 Settling Employee Grievances
 Handling Disciplinary Actions
 Maintain Contact with Labour Directorate
 Employee communications/publications

 Formulate & Review HR Policy

 Employee Services

 Observance of Statutory Requirements

 Supervises other Welfare Activities like:
* Fair Price Shops;
* Corporate Dealings;
* Ration Shops;
* Cooperative Shops, etc.
 Organizes Sports & Cultural Events
 Legal Assistance
 Employee Counselling
 Welfare Committee

 Record Maintenance
 Leave Administration
 HR Research

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 HR PLANNING
WHAT IS HR PLANNING?

“HR Planning is the process of using an organization’s goals and strategy to forecast the
organization’s HR needs in terms of finding, developing and keeping a qualified workforce.”

HRM planning is a process by which an organization ensures that it has the right number
and kinds of people, at the right time, capable of effectively and efficiently completing
those tasks that will help the organization to achieve its overall strategic objectives.
Human resource planning ultimately translates the organization’s overall goals into
number and types of employees needed to meet those goals.
Employment planning cannot exist in isolation. It must be linked to the organization’s
overall strategy. HR Planning, therefore, is best thought of as an integral part of the firm’s
strategic & HR planning process. For example, plans to enter new businesses, to build
new plants, or to reduce the level of activities all influence the number of and types of
positions to be filled.
Like any good plans, HR plans are built on premises-basic assumptions about the future.
The purpose of forecasting is to develop these basic premises. If you are planning for HR
requirements, you’ll usually need three sets of forecasts:
 One for Personnel Needs;
 One for the supply of Inside Candidates; and
 One for the supply of Outside Candidates;

THE HUMAN RESOURCE PLANNING PROCESS……………………………………………………

STRATEGIC PLANNING

HUMAN RESOURCE
PLANNING

FORECASTING DEMAND COMPARISON OF FORECASTING SUPPLY OF

FOR LABOR REQUIREMENTS AND LABOR
AVAILABILITY

DEMAND =SUPPLY
SURPLUS OF WORKERS SHORTAGE OF WORKERS

NO RESTRICTED HIRING, RECRUITMENT &

ACTION EARLY RETIREMENT, SELECTION
LAYOFF

HRM for Executives 5

FACTORS IN FORECASTING HR NEEDS
Managers should consider several factors when forecasting personnel needs. From a practical
point of view, the demand for your product or service is paramount. Thus, in a manufacturing firm,
sales are projected first. Then the volume of production required to meet these sales
requirements is determined. Finally, the staff needed to meet this volume of output is estimated.
In addition, the following factors should also be considered:
 Projected Turnover (as a result of resignations or terminations).
 Decisions to upgrade the quality of products or services or enter into new markets.
 Technological changes resulting in increased productivity.
 The financial resources available to your department.

TECHNIQUES FOR DETERMINING HR REQUIREMENTS

Trend Analysis: Trend analysis means study of a firm’s past employment needs over a
period of years to predict future needs.
Ratio Analysis:  A forecasting technique for determining future staff needs by using
ratios between sales volume and number of employees needed.
 For example, a salesperson traditionally generates Tk. 5,00,000 in
sales and that in each of the last two years you required ten
salespeople to generate Tk. 5 million in sales. Also assume that
your plans calls for increasing your firm’s sales to Tk. 8 million next
year and to Tk. 10 million two years hence. Then, if the sales
revenue – salesperson ratio remains the same, you would require
six new salesperson next year (each of whom produces an extra
Tk. 5,00,000 in sales.) In the following year, you would need an
additional four sales people to generate the extra Tk. 2 million in
sales.
Computerized The determination of future staff needs by projecting a firm’s sales,
Forecast: volume of production, and personnel required to maintain the volume of
output, using computer and software packages.
Managerial It’s rare that any historical trend, ratio, or relationship will continue
Judgment: unchanged into the future. Judgment is thus needed to modify the
forecast based on factors you believe will change in the future.

FORECASTING THE SUPPLY OF INSIDE CANDIDATES

Personnel Manual or computerized systematic records listing employee’s

Inventories: education, career and development interests, special skills, and so on
to be used in forecasting inside candidates for promotion.
Personnel Company records showing present performance and promotability of
Replacement Charts: inside candidates for the most important positions.

FORECASTING THE SUPPLY OF OUTSIDE CANDIDATES

This may require forecasting general economic conditions, local market conditions, and
occupational market conditions.
 General Economic Conditions: Usually, the lower the rate of unemployment, the lower the
supply and the more difficult it will be to recruit personnel.
 Local Market Conditions: For example, the build-up of computer programs resulted in
relatively low unemployment recently in cities like Dhaka.
 Occupational Market: Recently, for instance, there has been an undersupply of English
teachers.

HRM for Executives 6

 JOB ANALYSIS

WHAT IS JOB ANALYSIS?

"Job Analysis is a procedure by which pertinent information is obtained about a job, i.e., it is a
detailed and systematic study of information relating to the operations and responsibilities of a
1
specific job." In other words, it is the process of determining by observation and study, and
reporting pertinent information relating to the nature of a specific job. .... It is the determination of
the tasks which comprise the job and of the skills, knowledge, abilities, and responsibilities
required of the worker for a successful performance and which differentiate one job from another.

Generally, job analysis involves the following steps:

1. Collecting and recording job information

2. Checking the job information for accuracy.
3. Writing job descriptions based on the information.
4. Using the information to determine what skills, abilities, and knowledge are required on
the job.
5. Updating the information form time to time.

JOB DESCRIPTION............

 Job description is a written record of the duties, responsibilities and requirement of a

particular job.
 It is a statement describing the job in such terms as its title, location, duties, working
conditions and hazards. In other words, it tells us what is to be done, how it is to be done
and why.
 It is a standard of function, in that it defines the appropriate and authorized contents of a
job.

CONTENTS OF JOB DESCRIPTION..............

1. Job identification: Job title, Code number of the job, Dept, or Division where the job is
located. It helps to identify and designate the job properly.
2. Job summary: It describes the contents of a job in terms of the activities or tasks
performed. ...It gives a 'quick capsule explanation' of the contents of a job usually in one
or two sentences.
3. Job duties: It is the heart of job Description. It describes the duties performed along with
routine or daily duties, periodic duties and occasional duties.
4. Responsibilities: Responsibilities in regard to custody of money, supervision and
training of other workers, etc. are also described in this part.
5. Authority: It describes the financial, sanctioning and administrative authority given to the
job incumbent.
6. Supervision given/taken: Under this is given the No. of persons to be supervised along
with their job titles, and the extent of supervision involved - general, intermediate or close
supervision.

1
Flippo, E.B. Principles of Personnel Managment

HRM for Executives 7

 7. Working condition: The physical environment of the job is described in terms of heat,
light, noise level, dust and fumes, etc. Time - day, night, overtime, and peak loads;
Posture - Standing/sitting/stooping/walking/reaching/Lifting/reclining, etc.; Nature of risk
(hazards) and their possibility of occurrence are also given.
8. Machines, tools, equipment: The names of major machines, equipments and materials
used in the job are described.
9. Relation to other jobs: The jobs immediately below and above are mentioned. It
provides an idea of vertical workflow and channels of promotion. It also indicates to
whom the jobholder will report and who will report to him.
JOB SPECIFICATION...
 Job specification is a written record of the requirements sought in an individual worker for
a given job.
 It is a statement of minimum acceptable human qualities necessary for the proper
performance of a job. In other words, it refers to a summary of the personal
characteristics required for a job
 It is a standard of personnel and designates the qualities required for an acceptable
performance.

CONTENTS OF JOB SPECIFICATION...........

1. Physical make - up or characteristics:
Example: Essential : Good health/Pleasing manners. No significant disabilities
in voice, hearing and eyesight.
Dress : Neat conventional dress. Well groomed and takes trouble
with details of personal appearance.
2. Education & Training:
Example: Essential : MBA with specialization in HRM / MA/ Social Work.
Desirable : A degree or diploma in labor law.
Experience:
Example: At least five years' experience in a similar position in a large organization
of repute.

3. Age:
Example: Preferably above 30 years & below 45 years.

OTHER ATTRIBUTES............
4. Intelligence.
Example: An intelligent approach to the solution of business problems.
5. Special Aptitudes:
Example:  Fluency in speaking & writing;
 Analytical skills;
 Ability to prepare understand basic statistical information;
 Competence in Arithmetic;
 Ability to read B/S, & P & L A/C;
 High degree of listening skill;
 Evidence of ability, to plan ahead & organize the work of others.

HRM for Executives 8

 6. Interests:
Example: Evidence of some interest outside work but nothing specific.
7. Disposition:
Example:  Acceptability to other people and previous occupational evidence
of influencing others.
 Ability to Accept responsibility without undue strain.
 Cooperative in relations with others.
8. Motivation
Example: Ambitions - evidence of fairly rapid promotion and the achievement of
high but realistic goals; must be willing to control output to meet vigorous
performance standards/ targets.
9. Circumstance:
Example: Ability to work long hours if required.

USES (BENEFITS) OF JOB ANALYSIS..............

A comprehensive programme of job analysis is an essential element of sound human resource

management. It provides valuable information for taking right decisions about the organization's
human resources. Most functions of human resource management can be carried out with the
help of information generated by job analysis. The specific uses of job analysis are given below:

1. Organisational Design: job analysis is useful in classifying jobs and interrelationship

among them. Responsibility commonsurate with authority and accountability for various
jobs can be specified so as to minimize duplication or overlapping. In order to improve
organisational efficiency, sound decisions concerning hierarchical positions and
functional differentiation can be taken on the basis of information obtained through job
analysis.

2. Human Resource Planning: Job analysis provides useful information for forecasting
manpower requirements in terms of knowledge and skills. It also helps in planning for
promotions and transfers by indicating lateral and vertical relationships between different
jobs. Job analysis helps in determining quality of human resources required in an
organization. It also facilitates division of work. Therefore, job analysis is an essential
element of effective human resource planning.

3. Recruitment and Selection: Information relating to the tasks, responsibilities,

knowledge and skills serves as a realistic basis for hiring people. Job vacancy is
advertised on the basis of job description and job specification. Job analysis provides
understanding of what an employee is expected to do on the job. Such understanding
serves as the basis for meaningful forecast of job performance. Selection methods are
based upon such forecasts.

4. Placement and Orientation: A clear understanding of job requirements helps in

matching these requirements with the abilities, interests and aptitudes of people. Each
job can be assigned to the person who is best suited for it. Similarly, the orientation
programme can be geared towards helping the employee learn the activities, tasks and
duties that are required to perform a given job more effectively.

HRM for Executives 9

 5. Training and Development: Job analysis provides valuable information required to
identify training needs, to design training programmes and to evaluation training
effectiveness. A clear idea of what is required on a job helps in deciding what is to be
learnt and how. Similarly, employee development programmes such as job rotation, job
enlargement and job enrichment are based an analysis of job requirements.

6. Performance Appraisal: Job analysis helps in determining performance standards in

critical parts of a job. Employee performance can then be evaluated against known
standards and critical activities. The superior can compare actual performance with the
standards set with the help of job analysis.
7. Career Path Planning: Job analysis provides a clear idea of opportunities in terms of
career paths and jobs available in the organization. With the help of such understanding,
employees and the organization both can make efforts for career planning and career
development.

8. Job Evaluation: Job analysis serves as the basis for determining the relative worth of
different jobs. It therefore helps in developing appropriate wage and salary structures,
with internal pay equity between jobs.

9. Labour Relations: Information obtained through job analysis is helpful to both

management and trade unions for collective bargaining. It can also be used to resolve
disputes and grievances relating to work load, work procedures, etc.

10. Employee Counselling: Job analysis provides information about career choices and
personnel limitations. Such information is helpful in vocational guidance and rehabilitation
counselling. Employees who are unable to cope with the hazards and demands of given
jobs may be advised to opt for subsidiary jobs or to seek premature retirement.

11. Health and Safety: Job analysis reveals unhealthy and hazardous environmental and
operational conditions in various jobs. Heat, noise, dust, fumes, etc. are examples of
such conditions. On the basis of such information management can develop measures to
ensure the health and safety of employees.

SOURCES OF INFORMATION FOR JOB ANALYSIS.............

According to George R. Terry, "the make-up of a job, its relation to other jobs, and its
requirements for competent performance are essential information needed for a job analysis."
Information on a job may be obtained from three principal sources:

(a) From the employees who actually perform a job;

(b) From other employees such as supervisors and foremen who watch the workers doing a
job and thereby acquire knowledge about it; and
(c) From outside observers specially appointed to watch employees performing a job. Such
outside persons are called the trade job analyst. Sometimes, special job reviewing
committees are also established.

The duties of a trade job analyst are:

(i) To outline the complete scope of a job and to consider all the physical and mental
activities involved in determining what the worker does. For this purpose, he
studies the physical methods used by a worker to accomplish his task (including
the use of machinery, tools and his own movements and necessary mental
facilities).
(ii) The analyst finds out why a worker does a job; and for this purpose he studies why
each task is essential for the overall result.
(iii) He studies the skill factor which may be needed in the worker to differentiate
between jobs and establish the extent of the difficultly of any job.

HRM for Executives 10

METHODS OF JOB ANALYSIS..........
Four methods or approaches are utilized in analyzing jobs. These are:
(i) Personal observation;
(ii) Sending out questionnaires;
(iii) Maintenance of long records; and
(iv) Conducting personal interviews.
(i) Personal observation: The materials and equipment used, the working conditions
and probable hazards, and an understanding of what the work involves are the facts
which should be known by an analyst.
(ii) Sending out questionnaires: This method is usually employed by engineering
consultants. Properly drafted questionnaires are sent out to job - holders for
completion and are returned to supervisors. However, the information received is
often unorganized and incoherent. The idea in issuing questionnaire is to elicit the
necessary information from job - holders so that any error may first be discussed with
the employee and, after due corrections, may be submitted to the job analyst.
(iii) Maintenance of Long Records: The employee maintains a daily record of duties he
performs, marking the time at which each task is started and finished. But this system
is incomplete, for it does not give us any desirable data on supervisor relationship,
the equipment used, and working conditions, Moreover, it is time - consuming.
(iv) Personal interviews: May be held by the analyst with the employees, and answers
to relevant questions may be recorded. But the method is time - consuming and
costly.
However, it may be noted that the personal observation and interview approach are more or less
complete and accurate. If a particular job is simple and repetitive, observation may be the only
technique required. Otherwise, in most cases, interviews coupled with observation constitute the
desirable approach.

Caroll L. Shartle, Otis and Lenhert have provided the following suggestions for making the job
analyst's task simple:

(i) Introduce yourself so that the worker knows who you are and why you are there;
(ii) Show a sincere interest in the worker and the job that is analysed;
(iii) Do not try to tell the employee how to do his job;
(iv) Try to talk to the employees and supervisors in their own language;
(v) Do not confuse the work with the workers;
(vi) Do a complete job study within the objectives of the programmes; and
(vii) Verify the job information obtained.

It is also noted that what types of jobs, the number of jobs, and the geographical dispersion of
jobs are important for determining the specific method of job analysis used. For example, one
way of collecting job information is to observe employees actually performing the jobs. If
International Business Machines Corp. (IBM) were to use this procedure for collecting information
about all the jobs in IBM worldwide, this job analysis project would cost millions of dollars and
take years to complete. If, on the other hand, IBM were interested only in the job of keyboard
assemblers at a single plant, this observation method of collecting job information might prove
quite useful.

HRM for Executives 11

 RECRUITMENT & SELECTION

DIFFERENCE BETWEEN RECRUITMENT & SELECTION………….

RECRUITMENT
1. Recruitment is the process of
searching for prospective employees
and stimulating and encouraging
them to apply for jobs in an
organization.
SELECTION
1. Selection is the process of weeding
out unsuitable candidates and finally
choosing the most suitable persons
out of all the applicants.

2. Recruitment is positive as it aims at 2. Selection is negative as it rejects a

increasing the number of applicants large number of applicants to identify
for wider choice or for increasing the the few who are suitable for the job.
selection ratio.

3. Recruitment involves prospecting or 3. Selection involves comparison and

searching of candidates. choice of candidates.

STEPS IN RECRUITMENT PROCESS……….

The recruitment process consists of the following steps:

1. Recruitment process generally begins when the personnel department receives
requisitions for recruitment from any department of the company. The personnel
requisitions contain details about the position to be filled.
2. Locating and developing the sources of required number and type of employees.
3. Identifying the prospective employees with required characteristics.
4. Communicating the information about the organization, the job and the terms and
conditions of service.
5. Encouraging the identified candidates to apply for jobs in the organization.
6. Evaluating the effectiveness of recruitment process.

EMPLOYMENT TEST……………
A test is a standardized objective measure of a sample of behavior. It is standardized because
the procedure of administering the test, the environment in which the test is taken, and the
method of evaluating the individual score are uniformally applied.

TYPES OF TESTS

1. Aptitude Tests: These tests measure the ability or potential of a candidate to learn a
new job or skill. Peculiarities or defects in a person’s sensory or intellectual capacity can
be detected through these tests. It indicates how a person would be able to perform after
training and not what he has done or will necessarily do. It is thus used to predict the
future achievement and not the past achievement.

The best-known and widely used aptitude test is general intelligence test. Special
aptitude tests are also developed to measure special ability, such as clerical aptitude test,
mechanical aptitude test, musical aptitude test, etc.

HRM for Executives 12

 2. Achievement Tests: These tests measure what a person can do. These determine the
skill or knowledge already acquired through training and on the job experience. These
tests are of two kinds: Knowledge Test or trade test, and work sample test or proficiency
test.

3. Personality Tests: These probe deeply to discover clues to an individual’s value system,
emotional reactions and maturity, and his or her characteristic mode. These help in
assessing a person’s motivation and interests, his or her ability to adjust himself or
herself to the stress of everyday life, his or her capacity for interpersonal relations and for
projecting an impressive image of himself or herself.

There are three broad categories of personality tests: personality inventories, projective
tests and situation tests.

4. Interest Tests: These tests are inventories of a candidate’s like and dislikes in relation to
work. They are designed to discover a person’s area of interest and to identify the kind of
work that will satisfy him. A well-designed questionnaire is used to assess the likes and
dislikes.

PRECAUTIONS IN USING TESTS

Tests should be used only when found valid and reliable.

1. Test of  Content Validity: It implies the extent to which the contents of a test are
Validity: related to the job requirements.
 Criterion Validity: It implies the degree to which test scores are related to
job performance.
2. Test of It implies the characteristic that refers to the consistency of scores obtained by the
Reliability same person when retested with the identical or equivalent tests.

DEVELOPING A TEST PROGRAMME…………..

Developing a testing program requires careful planning, analysis, experiment and technical
knowledge. Services of experts and use of statistical techniques are often necessary: The main
steps involved in designing and executing a sound-testing program are given below:
(i) Deciding the Objectives: First of all, the objectives of the testing program are
spelled out. Tests may be designed for hiring, promoting and counseling people.
(ii) Analyzing Jobs: Jobs are analyzed to identify the characteristics considered
necessary for job success. These characteristics are defined in terms of human skills
and traits.
(iii) Choosing Tests: Appropriate tests are chosen to measure the identified
characteristics. The choice is usually based on experience, previous research and
guesswork. Tests may be chosen keeping in view the reliability, validity, ease of
administration, level of difficulty and the cost involved in different tests.
(iv) Administering The Tests: The chosen tests are applied on the desired group of
persons to measure the predetermined traits.

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 (v) Analyzing Results: The test scores are carefully analyzed in the light of success
criteria. After the analysis, decision concerning the candidate is taken. The candidate
is either selected for further processing or is rejected.
INTERVIEW………………………………………………………………………………………………….

Employment interview is a selection procedure designed to predict future job performance on the
basis of applicant’s oral responses to oral inquiries.

In the selection process, interviews serve the following purposes:

1. To cross-check or verify the information obtained in earlier steps, i.e. application blank
and tests.
2. To judge the candidate’s qualifications and characteristics so as to find whether or not
to select him or her.
3. To give a candidate essential facts about the company and the job to enable him or her
to decide intelligently whether he or she should or should not accept the employment.
4. To establish a rapport or mutual understanding between the company and the
candidate and to promote the company’s goodwill.

Finally, interview makes unique contributions to the selection process in several ways:
 First, it is the only way to judge the candidate in action-his or her looks, manners and
bearing.
 Secondly, it is the only way to judge how the candidate interacts and responds; and
 Thirdly, it is one of the best ways to predict the candidate’s job performance.

Thus, interview is by far the most widely used personnel selection procedure.

TYPES OF INTERVIEW

Interviews can be classified in four ways according to (a) the structure of the interview, (b) the
content of the interview, (c) the purpose of the interview, and (d) the ways of administering the
interview.

A. Classification of Interviews according to their Structure:

1. Unstructured interview: In an unstructured interview, questions are not planned in
advance. There is no set format to follow, and the interview can take various directions.
Interviewees for the same job thus may or may not be asked the same or similar
questions, and the interviews unstructured nature allows the interviewer to asks
questions based on the candidate’s last statements and to pursue points of interest as
they come up in response to questions.

2. Structured Interview: In a structured interview, questions are planned in advance and

are asked of each candidate in the same way. The only difference between interviews
with different candidates might be in the probes, or follow-up questions, if a candidate
has not answered a question fully. Interviews that feature structured questions usually
also provide structured rating scales on which to evaluate applicants after the interview.
B. Classification of Interviews according to their Content:
1. Situational Interview: A situational interview is one in which a series of hypothetical
job oriented questions focus on the individual’s ability to project what his or her

HRM for Executives 14

 behavior would be in a given situation. Actually, a committee of persons familiar with
the job develop situational questions based on the actual job duties. They then reach
consensus on what are or are not acceptable answers to these questions.
2. Behavioural Interview: In a behavioral interview, a situation is described and
interviewees are asked how they have behaved in the past in such a situation. Thus,
while situational interviews ask interviewers to describe how they would react to a
situation today or tomorrow, the behavioral interviews ask interviewers to describe how
they did react to the situation in the past.

C. Classification of Interviews according to their Purpose:

2. Stress interview: In a stress interview, the applicant is made uncomfortable by a

series of often-rude questions. Stress in induced by not allowing the candidate to
complete his or her answers or too many questions are asked in quick succession. The
interviewers show doubt on the validity of answers, try to belittle, humiliate, question
and frustrate the applicant. The aim of such interview is supposedly to help identify
hypersensitive applicants and those with low or high stress tolerance.

3. Depth Interview: In a depth interview, details concerning one key area are sought. It is
designed to intensively examine the candidate’s proficiency in his or her area of special
interest. The purpose is to get a clear picture of the candidate through deep probing
into his or her mind. Experts in the concerned area of knowledge ask relevant
questions so as to judge the candidate’s capability in the area.

D. Classification of Interviews based on how they are Administered:

1. Sequential Interview: The sequential interview means the applicant is interviewed by

several persons in sequence before a selection decision is made. In an structured
sequential interview, each interviewer rates the candidate on a standard evaluation
form, and the ratings are compared before the higher decision is made.

2. Panel Interview: The panel interview means the candidate is interviewed

simultaneously by a group (panel) of interviewers (rather than sequentially). This type
of interview allows each interviewer to pick up on the candidate’s answers, much as
reporters do in press conference.

3. Group interview: In this type of interview, groups rather than individuals are
interviewed. Generally, a topic for discussion is given to the group. Candidates are
carefully observed as to who will lead the discussion, how well they will participate in
the discussion, how each will make his or her presentation, and how well they will react
to each other’s views.

HRM for Executives 15

 WAGE & SALARY ADMINISTRATION

 Administration of employee compensation is called compensation management or wage

and salary administration.
 It involves formulation and implementation of policies and programs relating to wages,
salaries and other forms of employee compensation.
 It includes job evaluation, wage/salary survey, development and maintenance of wage
structure rules for administration of wages, profit sharing and other incentives and control
of payroll costs.
 The basic purpose of wage and salary administration is to establish and maintain an
equitable wage and salary structure and an equitable labour cost structure.

WAGE INCENTIVES:
 Incentives refer to performance-linked compensation paid to improve motivation and
productivity of employees. Incentives depend upon productivity, sales, profit, or cost
reduction efforts.
 It implies monetary inducements offered to employees to perform beyond acceptance
standards. It is related directly or indirectly to productivity and profitability of the
enterprise.
 Wage incentives include all the plans that provide extra pay for extra performance in
addition to regular wages for the job.

FRINGE BENEFITS:
 Fringe benefits are a supplement to regular wages or salaries.
 These benefits are paid to workers not for any specific job or performance but to
stimulate their interest in their work.
 Fringe benefits add to the workers’ standard of living or welfare.

WAGE VS. SALARY……………………………………………………………………………

WAGE SALARY

 Wage tells us how much we will earn in  Salary tells us how much we will earn
an hour (and a Day) or by the piece. either in a month or a year.

 Wages is paid to the labor directly  Salary is paid to the worker or staff related
involved in production. to administration and selling.

 Wages becomes part of the product cost.  Salary treated as selling and
administrative expense.

 Wages are computed by multiplying an  A salary is a fixed sum paid for a specific
hourly pay rate by the number of hours period of time worked, such as monthly or
worked. annually.

 Wages are paid to the blue-collar manual  Salaries are paid to white-collar
workers at a weekly interval. employees at the monthly interval.

HRM for Executives 16

OBJECTIVES OF WAGE & SALARY ADMINISTRATION…………………………………
A sound wage and salary administration seeks to achieve the following objectives:
 To establish a fair and equitable remuneration: A sound wage and salary administration
ensures internal and external equity in remuneration paid to employees.
 To attract competent personnel: Wage and salary administration helps to attract qualified
and hard-working people by ensuring an adequate payment for all jobs.
 To retain the present employees: By paying at competitive levels, the company can retain
its personnel. It can minimize the incidence of quitting and increase employee loyalty.
 To improve productivity: Sound wage and salary administration helps to improve the
motivation and morale of employees which in turn lead to higher productivity.
 To control costs: Through sound wage and salary administration labor and administrative
costs can be kept in line with the ability of the company to pay. It facilitates administration
and control of pay roll.
 To improve union-management relations: Wages and salary based on systematic
analysis of jobs and prevailing pay levels are more acceptable to trade unions. Therefore,
sound wage and salary administration simplifies collective bargaining and negotiations
over pay. It reduces grievances arising out of wage inequities.
 To improve public image of the company: Wage and salary program also seeks to project
the image of a progressive employer and to comply with legal requirements relating to
wages and salaries.

PRINCIPLES OF WAGE & SALARY ADMINISTRATION…

The following guidelines should be followed in the administration of wages and salaries:
 Wage policy should be established keeping in view the interests of the employer, the
employees, the consumers and the community.
 Wage policy should be stated clearly in writing to ensure uniform and consistent
application.
 An adequate database and a proper organizational se up should be developed for
compensation determination and administration.
 Differences in pay should be based on differences in job requirements.
 Wage and salary level should be in line with those prevailing in the job market.
 Follow the principle of equal pay for equal work.
 Recognize individual differences in ability and contributions.
 The employees and the trade union should be informed about the procedure used to
establish wage rates.
 The wages should be sufficient to ensure for the worker and his or her family reasonable
standard of living.
 There should be a clearly established procedure for hearing and adjusting complaints
concerning wages.
 The wage and salary structure should be flexible.
 Wages due to employees should be paid correctly and promptly.
 A wages committee should review and revise wages from time to time in conformity with
changing needs.

HRM for Executives 17

FACTORS INFLUENCING WAGES……………………………………………………………
The main factors influencing wage or salary levels are as follows:

1. Labour Market: Demand for and supply of labour influence wage and salary fixation. A
low wage may be fixed when the supply of labour exceeds the demand for it. On the
other hand, a higher wage will have to be paid when the demand exceeds supply, as in
case of skilled labour.

2. Ability to Pay: An organization’s ability to pay its employees is an important determinant

of wage level. Ability to pay depends upon the profit earning capacity of the enterprise.
Multinational organizations pay relatively higher salaries due to their higher paying
capacity.

3. Labour Unions: Well-organized trade unions exert pressure for higher wages and
allowances. This pressure is exercised through collective bargaining. Salary levels in
commercial banks are relatively high due to higher bargaining power of bank unions.

4. Cost of Living: Due to inflation, the real wages decline affecting the purchasing power of
workers. Therefore, dearness allowance is given according to changes in consumer price
index. Labour agreements generally have a clause providing for automatic increase in
pay as cost of living rises.

5. Prevailing Wage Rates: While fixing wages, prevailing wages in the particular
industry/region are taken into account. This is necessary to retain and attract qualified
workers.

6. Job Requirements: Basic wages depend largely on the difficulty level and physical and
mental effort required in a particular job. The relative worth of a job can be estimated
through job evaluation.

7. Productivity: Productivity of Labour also influences wage fixation. Greater effort of the
worker is rewarded through piece-rate or other forms of incentive payments. This form of
productivity, due to individual effort, cannot form a criterion of general wage movements.
It can, at best, help determine fair wages.

8. Legislation: Wage policy and laws of the Government exercise a significant influence on
wage levels. Government has enacted laws to protect the interests of the working class.
No organization can violate laws relating to minimum wage rates, overtime payments and
time and method of disbursing wage payments.

9. Business Strategy: The overall strategy that a company pursues should determine the
remuneration to its employees. Where the strategy of the enterprise is to achieve rapid
growth, remuneration should be higher than what competitors pay. Where the strategy is
to maintain and protect current earnings, because of the declining fortunes of the
company, remuneration level tends to be average or even below average.

10. The Employee: Several employee-related factors interact to determine his or her
remuneration. These include performance, seniority, work experience, educational
qualifications, potential, and so on.

All the factors given above account for wage differentials between industries/regions and
occupations.

HRM for Executives 18

 JOB EVALUATION
DEFINITION:
Job evaluation is an
 Orderly and systematic technique
 Of determining the relative worth of various jobs with in the organization
 So as to develop an equitable wage and salary structure.

OBJECTIVES OF JOB EVALUATION:

 To determine equitable wage differentials between different jobs in the organizations.
 To provide a framework for periodic review and revision of wage rates.
 To minimize wage discrimination on the basis of age, sex, caste, region, religion etc.
 To enable management to gauge and control the payroll costs.

PROCESS OF JOB EVALUATION:

1) Gaining Acceptance
2) Constituting Job Evaluation Committee
3) Selecting Jobs to be evaluated
4) Describing The Jobs
5) Selecting The Method of Evaluation
6) Weighting Job Factors
7) Assigning Money Values
8) Periodic Review

METHODS OF JOB EVALUATION:

1. Non-quantitative methods:
a) Ranking or job comparison
b) Grading or job classification.
2. Quantitative Methods: Point rating

NON-QUANTITIVE METHOD:
a. Ranking Method:
Name of the position Pair More Difficult Job Rank
 Deputy sec. Dy. Sec- Sr Asst. Sec Deputy Secretary 1
 Sr.Asst.sec. Sr. Asst. Sec-Asst Sec Sr. Asst Sec 2
 Asst. Sec. Asst Sec-Admin Off Asst. Sec 3
 Admin. off. Admin Off-UDC Admin. Off 4
 UDC Dy Sec-Asst. Sec Dy. Sec 5
Dy Sec-Ad. Off Dy. Sec
Dy.Sec-UDC Dy. Sec
Sr. Asst Sec-Ad Off Sr. Asst Sec
Sr. Asst Sec-UDC Sr. Asst Sec
Asst. Sec-UDC Asst Sec

HRM for Executives 19

b. Job Classification or Grading Method:
In this method, the procedure is as follow:
1) Job classes or grades are established.
2) Each job grade is defined in the form of a written description.
3) Each job is classified into an appropriate grade.

Grade Description

 Unskilled Jobs in this grade involve manual work. Little physical ability is
required. No formal education is essential.
 Skilled Job in his grade is clerical in nature. Little mental effort is
involved as deskwork is performed. High School certificate is
essential.
 Supervisory Jobs in this grade require ability to apply established procedures
and to guide others. Grade degree is essential.
 Executive Jobs in this grade involve decision-making and administrative
work. Professional qualifications are necessary.
 Policy Jobs in this grade involve policy making and control.
Considerable work experience at policy levels is required.

QUANTITATIVE METHODS: POINT RATING METHOD:

1. Determine the job : Representative jobs are selected from each job categories.
to be evaluated

2. Select the factors : Factors Sub-factor

Skill Education, experience, training, judgment
Efforts physical and mental Quality of output, raw
materials, machinery and equipment, Safety
Responsibility
of others
Working Working environment accidents, hazards,
conditions discomfort, etc.

3. Define the factors : Selected factors or sub-factor should be defined.

4. Determine the : Different degrees of each factor are decided and defined clearly.
degrees For example, the degrees of ‘education’ may be defined as
follows:
Degree Definition
1 Should be able to do ordinary counting and to
understand verbal instruction-(class –111)
2 Should be able to read and write-8th
3 Should be able to carry out mathematical
calculations -metric
4 Requires ability to compare written material and to
make advance calculation- graduate

HRM for Executives 20

5. Assignment of :
point values Factors (skill) Point Values for Degrees
to degree 1 2 3 4 5
Education 5 10 20 30 40
Experience 5 10 15 20 30
Training 5 10 15 20 30

6. Find point : Various points assigned to different factors in a job are added up to find out
value of job the total points, which indicate the relative worth of the job in terms of point
value.

Degree Jobs Factors Total

Point
Education Experience Training
Value of
job

5 Asst sec 40 30 30 100

4 Ad. Officer 30 20 20 70
3 UDC 20 15 15 50
2 Peon 10 10 10 30
1 Cleaner 5 5 5 15

7. Assign money :
Point Daily Job Generic Job title
value
Range Wage grade function/definition
Rate Of each job
15-29 Tk. 25-25 1 Jobs in this grade Cleaner
involve manual work.
No formal education is
required.
30-49 Tk. 25-45 2 Ordinary counting and Peon
to understand verbal
instruction.
50-69 Tk. 35-45 3 Job in this grade is UDC
clerical in nature.
70-99 Tk. 45-60 4 Job in this grade Ad. Officer
requires ability to apply
established procedures
and to guide other.
100 Tk. 60-75 5 Job in this grade Asst. Sec
involves decision-
making and
administrative work.

HRM for Executives 21

 PERFORMANCE APPRAISAL

Performance appraisal is the process by which an employee’s contribution to the organization

during a specified period of time is assessed. Performance Feedback then lets the employee
know how well they have performed in comparison with the standards of the organization.

 A process of systematically evaluating performance and providing feedback upon

which performance adjustments can be made.
 Performance appraisal should be based on job analysis, job description, and job
specifications.

USES OF PERFORMANCE APPRAISAL………………………………………………………………

 Performance Management;
 Pay for Performance;
 Internal Staffing;
 Training Needs Analysis;
 Research & Evaluation.

THE SUPERVISOR’S ROLE IN APPRAISAL……………………………………………………………

The supervisor usually does the actual appraising. Therefore, he or she must be familiar with
basic appraisal techniques, understanding and avoid problems that can cripple an appraisal, and
conduct the appraisal fairly.

HR RESPONSIBILITIES……………………………………………………………………………………
 Serves a policy-making and advisory role.
 Provides advice and assistance regarding the appraisal tool to use.
 Prepares forms and procedures and insists that all departments use them.
 Responsible for training supervisors to improve their appraisal skills.
 Responsible for monitoring the system to ensure that appraisal formats and
criteria comply with laws and are up to date.

Aspects of value (What should be measured)…………………………………..

The six primary criteria on which the value of performance may be assessed……….
1. Quality: The degree to which the process or result of carrying out an activity approaches
perfection, in terms of either conforming to some ideal way of performing the activity or
fulfilling the activity’s intended purpose.
2. Quantity: The amount produced, expressed in such terms as monetary value, number of
units, or number of completed activity cycles.
3. Timeliness: The degree to which an activity is completed, or result produced, at the
earliest time desirable from the standpoints of both coordinating with the outputs of others
and maximizing the time available for other activities.
4. Cost-effectiveness: The degree to which the use of the organization’s resources (e.g.,
human, monetary, technological, material) is maximized in the sense of getting the
highest gain or reduction in loss from each unit.
5. Need for supervision: The degree to which a performer can carry out a job function
without either having to request supervisory assistance or requiring supervisory
intervention to prevent an adverse outcomes.
6. Interpersonal impact: The degree to which a performer promotes feelings of self-esteem,
goodwill, and cooperativeness among coworkers and subordinates.

HRM for Executives 22

 PERFORMANCE-LEVEL ANCHORS………………………………………………
Work-oriented appraisal systems typically require raters to compare performance on each job
function against a set of benchmarks. These benchmarks are brief descriptions of levels of
performance, and are referred to as “anchors” or performance-level anchors.

Performance-level anchors may take three different forms:

1. Adjectives or Adjective Phrases;
2. Behavioral Descriptions or Critical Incidents; and
3. Outcomes or Results produced by performing.

 Adjectives or Adjective Phrases: Adjectives or Adjective Phrases (e.g., “satisfactory”,

“very low”, “below standard”, “rarely”, etc.) are highly subjective because their
interpretation can mean different things to different raters. For example, one manager’s
definition of “below standard” may be quite different from another manager’s definition.
 Behavioral Descriptions : Behavioral Descriptions consist of descriptions of the actions
or behaviors taken by the person being appraised. For example, if the job function is
“scheduling meetings”, the behavioral anchors may look like “sends notices about
meetings”, “visits employees to remind them about meetings”, and “posts notices about
meetings in key locations”. Behavioral anchors are very useful for developmental
purposes since raters are able to give specific behavioral feedback to employees.
 Result-oriented Anchors: Result-oriented Anchors are based on outcomes produced
and may look like the “number of customer complaints”, “number of units produced”, the
“number of units rejected by quality control”, or the “number of days absent”.

THE PROCESS OF PERFORMANCE APPRAISAL……………………………………

1.
Setting Performance
Standards

6. 2.
Taking Corrective Communicating the
Actions Standards

5. 3.
Discussing the Measuring
Appraisal Actual Performance

4.
Comparing the actual
With the Standards

HRM for Executives 23

APPRAISAL METHODS……………………………………………………………….………..

Three different approaches exist for doing appraisals: employees can be appraised against:
(a) Absolute standards, (b) Relative standards and (c) Objectives.
 Absolute standards: Measuring an employee’s performance against some established
standards, e.g., Essay Appraisal, Critical Incident Appraisal, Graphic Rating Scale,
Forced-Choice appraisal, BARS, and Management by Objectives (MBO).
 Relative standards: Evaluating an employee’s performance by comparing the employee
with other employees, e.g., Alternation Ranking, Paired Comparison.
 Management by Objectives (MBO): Involves setting specific measurable goals with each
employee and then periodically reviewing the progress made.

ABSOLUTE STANDARDS…………………….. …………………………………………

 Essay Method  Manager writes a short essay
describing an employee’s
performance.
 Graphic  A scale that lists a number of traits
Rating Scale (such as quality and reliability) and
Method a range of performance values
(from unsatisfactory to
outstanding) for each trait. The
employee is then rated by
identifying the score that best
describes his or her level of
performance for each trait.
 Critical  Manager keeps a written record of
Incident highly favorable and unfavorable
Method employee actions.
 Record of incidents of each
subordinate’s behavior that led to
unusual success or failure in a
give performance aspect.
 Excellent for development and
feedback due to qualitative
emphasis.
 Forced  Uses a small number of
distribution performance categories, and rater
assigns a specific proportion of
employees to each category.
 Behaviorally  An Appraisal method that aims at
anchored combining the benefits of narrative
rating scales critical incidents and quantified
(BARS) ratings by anchoring a quantified
scale with specific behavioral
examples of good and poor
performance.
 Developed through the careful
collection of observable job
behaviors that describe both
superior and inferior performance.
 Depends on the managers’
writing skills and their ability to
express themselves.
 List of dimensions related to
high performance, and the rater
assigns an individual score on
each dimension.
 Easy and efficient to use.
 Conundrum of job relevance
and generality across jobs.
 Variations in how managers
define a “critical incident”
 Time involved in documenting
employee actions
 Most employee actions are not
observed and may become
different if observed
 Employee concerns about
manager’s “black books”
 Difficult to use for evaluation
due to lack of quantitative
emphasis.
 Forces rater to use all
categories.
 Can be problematic if most of
the employees perform
similarly.
 Provides specific behaviors that
are useful for counseling and
feedback.
 May not be as superior as once
thought.

HRM for Executives 24

RELATIVE STANDARDS…………………….. ………………………………………..
Alternation Ranking  Consists of rank ordering  Relatively simple to use.
Method individuals from best to worst  Can be burdensome when
on each performance evaluating a large number of
dimension. people.

Paired comparison  Each person is directly  Can be very tedious when

compared with every other many people must be
person being rated. compared.
 Final performance ranking
reflects the frequency of
endorsement across all pairs.

MANAGEMENT BY OBJECTIVES (MBO)……………………………………………

 Subordinates work with their supervisor to establish specific task-related objectives.

 MBO is the most individualized appraisal method .

 MBO works well with counseling, provided the goals focus on important activities.

 MBO is not highly subjective to rating errors.

MBO CONSISTS OF SIX MAIN STEPS:

1. Set the organization’s goals. Establish an organization wide plan for next year and set
goals.

2. Set departmental goals. Here department heads and their superiors jointly set goals for
their departments.

3. Discuss departmental goals. Department heads discuss the department’s goals with all
subordinates in the department (often at a department wide meeting) and ask them to
develop their own individual goals; in other words, how can each employee contribute to
the department’s attaining its goals?

4. Define expected results. (set individual goals). Here department heads and their
subordinates set short-term performance targets.

5. Performance reviews: Measure the results. Department heads compare the actual
performance of each employee with expected results.

6. Provide feedback. Department heads hold periodic performance review meetings with
subordinates to discuss and evaluate the latters’ progress in achieving expected results.

HRM for Executives 25

BEHAVIORALLY ANCHORED RATING SCALE (BARS)…………………………………..

An Appraisal method that aims at combining the benefits of narrative critical incidents and
quantified ratings by anchoring a quantified scale with specific behavioral examples of good and
poor performance.

Developing a BARS typically requires five steps:

1. Generate critical incidents. Persons who know the job being appraised (jobholders and/or
supervisors) are asked to describe specific illustrations (critical incidents) of effective and
ineffective performance.

2. Develop performance dimensions. These people then cluster the incidents into a smaller
set of performance dimensions (say, five or ten). Each cluster (dimension) is then
defined.

3. Reallocate incidents. Another group of people who also know the job then reallocate the
original critical incidents. They are given the clusters’ definitions and the critical incidents
and are asked to reassign each incident to the cluster they think it best. Typically, a
critical incident is retained if some percentage (usually 50% to 80%) of this second group
assigns it to the same cluster as did the group in step 2.

4. Scale the incidents. This second group is generally asked to rate the behavior described
in the incident as to how effectively and ineffectively it represents performance on the
appropriate dimension (seven-or-nine-point scales are typical).

5. Develop final instrument. A subset of the incidents (usually six or seven per cluster) is
used as behavioral anchors for each dimension.

“BARS” PERFORMANCE APPRAISAL FORMAT

Job Dimension: Program Promotion and Public Relations Behaviors
This agent can be expected to:
 Conduct one of the best public information programs in the state.
7
 Always get extensive media coverage for his/her programs.
 Constantly develop good public relations and not just at budget time.
 Be willing to work with all groups and organizations for promotion of
Extension regardless of personal feelings.
6  Communicate effectively with publicity media.
 Have developed a countywide mailing list of interested individuals.
 Make some original use of mass media.
5  Localize some of the promotional material supplied by the Extension office.
 Make reports to advisory groups and public officials on request or as
opportunities arise.
4  Maintain communication with some local leaders, organizations, and groups.
 Assist with planning and implementing public relations programs even
3 though efforts may lack consistency.
 Insufficiently use one or more of the mass media.
 Make no effort to speak to community clubs or organizations.
 Continually mention mass media that should be contacted to increase
2 potential audiences, but do nothing about it.
 See some parts of the program as being unimportant and thus not be
concerned with them.
 Show disrespect for local values and customs.
1
 Fail to communicate events and activities to those interested.

HRM for Executives 26

 MEASUREMENT ERRORS IN PERFORMANCE APPRAISAL……………………………………
 Halo errors: The rater evaluates the ratee on several different dimensions and gives a
similar rating for each dimension.
 Leniency errors: Raters tend to give everyone relatively high ratings.
 Strictness errors: Raters tend to give everyone relatively low ratings.
 Central tendency errors: Raters lump everyone together around the average or middle.
 Low differentiation errors: Raters restrict themselves to a small part of the rating scale.
Examples include leniency, strictness, and central tendency errors.
 Recency errors: Raters allow recent events to exercise undue influence on ratings.
 Personal bias errors: Raters let personal biases, such as stereotypes, unduly influence
the ratings.

APPRAISAL INTERVIEW……………………………………………………………………..

Appraisal Interview can be of the following types:

TELL AND SELL/DIRECTIVE INTERVIEW: The purposes of this interview are: (a) to let the
employee know how well he is doing, (b) to gain the employee’s acceptance of the evaluation,
and (c) to draw up a plan of improvement for him.

 It is based on the assumption that employees have some deficiencies but they need to be
convinced about this deficiencies, the rater’s appraisal and suggestions for improvement.
 The interviewer requires patience, understanding and ability to convince the employee about
his evaluation and subsequent remedial measures without using his positional authority.

This type of interview is appropriate for young and new employees who are inexperienced,
insecure and want the advice of the superior. The superior can command respect because of his
greater knowledge and experience.

TELL AND LISTEN INTERVIEW: The objective of this interview is to communicate the appraisal to
the employee and then listen sympathetically to his reactions. Such an interview is divided into
two parts. The first part covers the strong and weak points of the employee’s job performance;
and the second part is used to explore thoroughly the employee’s feelings about the appraisal.

The superior encourages the employee not only to disagree with the appraisal but also express
his feelings. Instead of dominating the discussion, the interviewer acts as a non-directive
counselor. Careful listening, making effective uses of pauses and responding to feelings to show
understanding are the skills required in this type of interview.

One advantage of this method is that it creates good relationship between the superior and the
subordinate. The subordinate develops a favorable attitude towards the superior. Another
advantage is that it tends to encourage upward communication. As a result management tends to
become employee-oriented rather than production-oriented.

PROBLEM SOLVING INTERVIEW: In this interview, the aim is not appraisal but development of an
employee. Therefore, the interviewer takes himself out of his usual role as a judge and puts
himself in the role of a helper. He does not communicate (tell) the appraisal to the employee. He
does not point out the areas of improvement. Rather he stimulates the employee into thinking
about improving his own performance. He does not supply remedies or solutions but considers all
ideas on job improvement suggested by the employee. This he does by skillful questions, eg., Do
you anticipate any problems in the changing market? Can you plan to deal with emergencies?

HRM for Executives 27

 ANNEXURE-1: DISTINCTION BETWEEN
PERSONNEL MANAGEMENT (PM) & HUMAN RESOURCES MANAGEMENT

Dimension PM HRM

Perspective Short-term perspective Long-term perspective

Point of View Compliance The psychological contract

based on commitment

Control External control Self-control

Perception Pluralist perspective A utilitarian perspective

Structure Bureaucratic structure An organic structure

Role Specialist role Strategic role

Outlook Cost-minimization Maximum utilization

Employment contract Careful delineation of written Aim to go beyond contract

contracts

Rules Importance of devising clear Can do outlook, impatience

rules with rule

Guide to management action Procedures Business need

Behavior referent Norms/customs and practices Values/mission

Managerial task vis-à-vis Monitoring Nurturing

labour

Initiatives Piecemeal Integrated

Communication Indirect Direct

Prized management skills Negotiation Facilitation

Job design Division of labor Team work

Conflict handling Reach temporary truce Manage climate and culture

Training and development Controlled access to courses Learning organizations

Respect for employees Labor is treated as a tool People are treated as assets
which is expendable and to be used for the benefit of
replaceable an organization

Shared interests Interests of the organization Mutuality of interests

are uppermost

Evolution ‘Employee advocate' ‘Member of the management

HRM for Executives 28

 team'
ANNEXURE-2: JOB ANALYSIS FORM

1. Job Identification

Organization

Job title
I. D. No.

Incumbent

Analyst

Date

2. Job Summary

3. Duties Performed

4. Supervision Given

5. Supervision Received

5. Relationship to Other Jobs

Promoted from

Promoted To

6. Machines, Tools, and Equipment Used

7. Working Conditions

8. Job Specifications

Physical requirements:

Educational requirements:

Special skills:

Experience required:

Training required after hire:

9. Unusual Terms

HRM for Executives 29

 ANNEXURE-3: GUIDELINES FOR CONDUCTING AN INTERVIEW

Plan the interview

1. Review the candidate’s application and resume, and note any areas that are vague or that
may indicate strengths or weaknesses.
2. Convert job descriptions into interview questions and prepare a structured guideline or
checklist of what to look for in a candidate.
3. Develop benchmark answers and a five-point rating scale for each question.
4. Choose the appropriate type of interview to be used.

Physical setting
5. Choose a setting or an environment which is comfortable and pleasant enough to generate
greater interaction and hence more information.

Rapport building
6. Put the candidate at ease by asking neutral questions about his journey, weather, sports,
etc. Such an attempt would help in developing greater rapport.

Conducting the interview

7. Try to follow structured guideline or the questions wrote out ahead of time.
8. Start by asking simple questions and slowly graduate to more difficult ones. If the
applicant is not able to answer at a certain level, stop, because he or she has reached his
highest level of competence.
9. Ask open-ended questions instead of those that lead to yes-no answers. Follow these
explanatory questions by probing and seeking illustrative or hypothetical situation and
related replies.
10. Avoid asking leading or loaded questions that might lead to debate instead of dialogue.
11. Listen carefully to what the applicant has to say without interruption. Provide positive
feedback to encourage him or her to talk.
12. Ensure that sufficient time is taken by the applicant while replying to questions.

Close the interview:

13. Toward the close of the interview, leave time to answer any questions the candidate may
have and, if appropriate, to advocate your firm to the candidate.
14. Terminate the interview naturally. An abrupt ending might convey the meaning that more
could have been achieved.

Review the interview

15. After the candidate leaves, review your interview notes and fill in the structured interview
guide (if this was not done during the interview).
16. First rate independent ratings on the applicant and then discuss them.

HRM for Executives 30

 ANNEXURE-4: NON-FINANCIAL BENEFITS
NON-FINANCIAL BENEFITS

TREATS AWARDS/HONOR
 Free lunches  Trophies/cup/medal
 Coffee breaks  Plaques/commemorative words
 Picnics  Citation/quotation
 Dinner with boss  Certificates
 Dinner for the family  Letters of appreciation
 Birthday treats  Employee of the month

SOCIAL ACKNOWLEDGEMENT KNICK-KNACKS/SOUVENIR

 Contribution posted on the employee  Desk accessories
bulletin board
 Company watches
 Contribution noted in the company
newsletter  Tie-pins, brooches/pin

 Provide public praise at a staff  Diaries/planners

meeting  Calendars
 Solicitation of advice, suggestions  Wallets/folder/case
 Handwritten cards to mark celebratory  T-shirts
occasions

ON THE JOB PERQUISITES (PERKS)

 More responsibility  Company car

 Job rotation  Special parking
 Special assignments  Plush office
 Training & development  Vacation travel
 Attending a conference or seminar  Well furnished houses
 Impressive titles  Membership of recreation clubs

 Telephone/Internet  Own secretary

OFFICE ENVIRONMENT TOKENS

 Preferred office furnishings  Movie tickets
 Piped music  Vacation trips
 Flexible hours  Anniversary and birthday presents

HRM for Executives 31

 ANNEXURE-5: GUIDELINES FOR DEVELOPING AN APPRAISAL PROCESS

1. Conduct a job analysis to ascertain the characteristics (such as “timely project

completion”) required for successful job performance. Graphically:

Job Analysis Performance Standards Performance Appraisal

2. Incorporate these criteria and standards into a rating instrument (behaviorally anchored
rating scale (BARS), graphic rating scale, and so on).

3. Use clearly defined job performance dimensions (like “quantity” or “quality”) rather than
undefined, global measures of job performance (like “overall performance”).

4. Communicate performance standards to employees and to those rating them, in writing.

5. When using graphic rating scales, avoid abstract trait names (such as “loyalty” or
“honesty”), unless you can define them in terms of observable behaviors.

6. Use subjective supervisory ratings (essays, for instance) as only one component of the
overall appraisal process.

7. Train supervisors to use the rating instrument properly. Give instructions on how to apply
performance appraisal standards (“outstanding,” and so on) when making judgments.

8. Allow appraisers considerable daily contact with the employees they’re evaluating.

9. Whenever possible, have more than one appraiser conduct the appraisal, and conduct all
such appraisals independently. This can help to cancel out individual errors and biases.

10. Utilize formal appeal mechanisms and a review of ratings by upper-level personnel.

11. Document all information and reasons bearing on any personnel decision.

12. Where appropriate, provide corrective guidance to assist poor performers in improving
their performance.

th
Source: Gary Dessler, Human Resource Management, 7 Edition.

HRM for Executives 32

 ANNEXURE-7: LIST OF FILES

Sl.No. Functions/Subject Title of the Files

1. Personnel Policy 1. All recorded approved policy

2. Service Rules 2. Detail service rule

3. All job description with specification

3. Manpower Status 4. Manpower existing strength

5. Existing Manpower Requirement

6. Future Manpower Requirement

4. Recruitment 7. Details of recruitment including tests, Selection Board,

Result etc.

8. Induction program

5. Training & 9. Training Needs Analysis

Management
10. Arranging Training Program In-house/Outside the
Development
organization

11. Officers Training

12. Workers Training (detail information)

13. List of Relevant Training Institutions

14. Nominated personnel

6. Library 15. Books or Documents Detail

7. Job Changes 16. Promotion (Promoted; Potential for Promotion etc.)

17. Transfer

18. Retirement

8. Industrial Relations 19. Industrial Laws

20. Details of associations-no. of members, activities etc.

21. Negotiation result if any

22. Records related to Labor Directorate

9. Leave 23. Casual Leave, Earn Leave, Sick Leave, etc.

Administration

HRM for Executives 33

 Sl.No. Functions/Subject Title of the Files

10. Health & Safety 24. Personal Protective Equipment inventory list
25. Supply of PPE
26. Safety rules & regulation
27. Safety training
28. Safety committee
29. Safety related data
30. Existing status
31. Safety equipments and clothing
32. Fire Drill statistics
33. Injury Statistics
34. Pre-placement examination
35. Periodic physical examination
36. First Aid
37. Health education
38. Sanitation
39. Observance of statutory rules
40. Health statistics

11. Employee Services 41. Canteen/Dinning related detail

42. Employee counseling
43. Welfare activities-ration shop, cooperatives
44. Welfare committee
45. Grievance Handling related information
46. Types of grievances with date and other detail
information
47. Measure taken

12. Salary and Wage 48. Observance of statutory regulation

49. Maintenance of wage structure
50. Wage schedule
51. Salary bills
52. Incentive plans
53. Benefit Plans
54. Job evaluation report (If any)

HRM for Executives 34