Professional Documents
Culture Documents
Potential appraisal
The potential appraisal refers to the appraisal i.e.
identification of the hidden talents and skills of a person. The person might or might not be aware of them.
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Potential appraisal helps to identify what can
happen in future so that it can be guided and directed towards the achievement of individual and organizational growth and goals. Therefore, potential should be included as a part of the Performance appraisal in organizations.
development and future prospects. Help the organization to chalk out succession plan. Motivate the employees to further develop their skills and competencies. To identify the training needs. Showing a bigger picture to the employees. Infusing enthusiasm in the employees to sharpen the abilities.
Assessment Center
An Assessment center is a comprehensive, standardized
procedure in which multiple assessment techniques such as situational exercise and job simulation are used to evaluate the individual employee for a variety of decisions.
Most frequently the approach has been used for
individuals being considered for selection, promotion, placement or special training and development in management.
Tools used
Psychometric Tests
Interviews- background interviews, critical incident/situational interviews
Role Plays
Presentations
Procedure used
Observation and Individual Assessor Rating
Assessors Discussions Consultants Role
CEOS Role
SAIL Escorts TISCO Aditya Birla Castrol (India) Cadbury Wipro Siemens
Competency Mapping
COMPETENCIES
BEHAVIORS (actions)
OUTPUTS
ORGANIZATIONAL RESULTS
DEFINITIONS
Hayes (1979)- Competencies are generic knowledge motive, trait, social role or a skill of a person linked to superior performance on the job. Albanese (1989) Competencies are personal characteristics that contribute to effective managerial performance.
UNIDO (2002)- A Competency is a set of skills, related knowledge and attributes that allow an individual to successfully perform a task or an activity within a specific function or job.
Components of competency
Competency has three major components which are as follows:
1)Knowledge:
It refers to the information a person possesses about specific areas, knowledge comprises many factors like memory, numerical ability, linguistic ability, and is, therefore, a complex competency. It can be either: Scientific Knowledge Technical Knowledge Job Knowledge
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2)Skill:
It represents intelligent application of knowledge, experience, and tools. This is the procedural "know how" knowledge (what one can do), either covert (e.g., deductive or inductive reasoning) or observable e.g. "active listening" skill in an interview.
3)Attitudes: Attitudes are predispositions to other individuals, groups, objects, situations, events, issues etc. Attitudes decide our approach or avoidance behavior. They are normally conceptualized as positive or negative.
Behavior indicators
A Competency is described in terms of key behaviors that enables recognition of that competency at the workplace.
COMPETENCIES
BASIC
PROFESSIONAL
INTELECTUAL
KNOWLEDGE
MOTIVATIONAL
EXPERIENCE
EMOTIONAL
SOCIAL
ORGANIZATONAL COMPETENCIES
Competencies which are considered essential for all employees regardless of their function or level. Communication, initiative, listening etc. Competencies which are considered essential for employees with managerial or supervisory responsibility in any functional area including directors and senior posts. Specific competencies which are considered essential to perform any job in the organisation within a defined technical or functional area of work e.g. Finance, environmental etc
GENERIC
BASIC
MANAGERIAL
INTELECUAL
FUNCTIONAL/
TECHNICAL
lists the competencies required for effective performance in a specific job, job family (e.g., group of related jobs), organization, function, or process.
Individual competencies are organized into competency models to
enable people in an organization or profession to understand, discuss, and apply the competencies to workforce performance.
Stage 3 Validation
Study Identified Jobs Identify major categories of skills Identify Probable competencies
Review list of probable Competencies Construct Competency Definitions Assign proficiency levels
Content Validation session Reinforce proficiency of critical competencies Refine competency definitions, if necessary
Performance-related Pay
Pay
to employees whose work is: a) Considered to have reached a required standard, and/or b) Is above average Performance related pay is generally used where employee performance cannot be appropriately measured in terms of output produced or sales achieved. Like piece-rates and commission, performance related pay is a form of incentive pay. This system is usually used where piece rate systems are not appropriate or able to be used because the work may not be able to be measured in a very precise or accurate way.
Features
Individual performance is reviewed regularly (usually
once per year) against agreed objectives or performance standards. This is the performance appraisal. At the end of the appraisal, employees are categorised into performance groups which determine what the reward will be (if any) The method of reward will vary, but traditionally it involves a cash bonus and/or increase in wage rate or salary.
rewards and incentives to enhance organizational performance through improved individual performance. This objective is achieved through a pay system with the following aims and characteristics. It should: 1) have a strategic objective designed to achieve specific organizational goals 2) focus attention on the important performance issues 3) bring about changes in culture (e.g. team work, customerorientation) or reinforce existing ones. 4) enable the recruitment and retention of competent staff. 5) underline the importance of not only individual performance but also its contribution to team work.
Contd
6) provide higher earnings potential through rewards to
employees, though differentiated in an equitable and consistent way according to their contribution. 7) be flexible in the sense that it contains a variable component which is affected by performance. 8) control labour costs by absorbing the cost of the rewards in the benefits accruing to the organization from improved performance. 9) form part of an overall human resource management system which includes intrinsic rewards.
organisations goals to motivate employees by linking pay to achievement of targets not length of service to reward achievement and identify under performance; foster teamwork and fairness. to contribute to overall improvements in productivity; to introduce more flexible pay systems or deal with recruitment and retention problems in the case of some employers, to give greater power to managers and weaken trade union influence in bargaining and representation of staff.
2. issuing gift
vouchers
Objective setting Communication and understanding of objectives Consideration of performance against objectives Translation of evaluation into performance rating A link between ratings and the determination of pay A separate appeals procedure
easily understood, communicated and accepted. Performance pay should therefore be negotiated. Inappropriate performance appraisal systems in that the objectives of the appraisal system (e.g. where it is intended to identify training needs or suitability for promotion) do not match the objectives of the reward system. In fact, the normal appraisal system should not be used to determine performance pay. The absence of regular feedback on performance. The reward system is not designed to meet the objectives sought to be achieved. The absence of a right mix of extrinsic and intrinsic rewards.
Contd
The lack of an appropriate quantum of pay which
should be subject to performance criteria. This occurs when the amount which depends on performance is too small, or it is too large and therefore the amount placed at risk (when performance is poor) is not acceptable to employees. The absence of periodic evaluations of the scheme. Non-recognition of the fact that performance, especially profit, is sometimes (even often) dependent on factors outside the control of employees e.g. management decisions, exchange rates, recessions
Advantages
Pays the right people the right amounts. Weeds out lazy workers.
company recognizes achievement through the pay system. Increased efficiency through improved company performance. Focuses efforts of employees where the business needs it. Improves individual/team performance. Provides a warning criteria, employers make clear performance criteria they require. Employees seek to achieve this criteria in order to be rewarded with higher pay.
Disadvantages
There may be disputes about how performance is measured and whether an employee has done enough to be rewarded Rewarding employees individually does very little to encourage teamwork It may encourage unhealthy rivalry between managers There is much doubt about whether performancerelated pay actually does anything to motivate employees. This may be because the performance element is usually only a small percentage of total pay.
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