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Course Module
Human Resource
Management (HRM)
Addis Ababa, Ethiopia
September
, 2021
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TABLE OF CONTENTS
Contents
Page
Unit 1: Human Resource Management an overview
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3
Unit 2: H
uman Resource Management Environment
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13
Unit 3: Job Analysis and Human resource planning
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17
Unit 4: Recruitment and Selection
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23
Unit 5: Training
and Development
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35
Unit 6: performance Appraisal
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54
Unit 7: compensation benefit administration
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...
69
Unit8: Integration and Discipline
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80
Unit 9: Promotions, Demotions, Transfers and Separation
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85
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Chapter one
Human Resource Management an Overview
1.1 Introduction
Human resource management (HRM) is concerned with the
“people” dimensions in management. HRM is
the term increasingly used to refer to the philosophy, policies, procedures and practices relating to the
management of people within organizations. Since every organization is made up of people, acquiring their
s
ervices, developing their skills, motivating them to higher levels of performance and ensuring that they
continue to maintain their commitment to the organization are essential to achieving organizational
objectives. Those organizations that are able to ac
quire develop, stimulate and keep outstanding workers
will be both effective and efficient. Those organizations that are ineffective or inefficient risk the hazards of
stagnating or going out of business. Human resource thus, creates organizations and make
s them survive
and prosper. If human beings are neglected or mismanaged, the organization is unlikely to do well.
Thus, the basic approach of HRM is to perceive the organization in its totality. Its emphasis is not only on
production and productivity but a
lso on the quality of life. It seeks to achieve the fullest possible socio
-
economic development.
Definitions of HRM
According to
Ivancevich and Glucck
-
“Human resource management is the function performed in
organizations that facilitates the most effectiv
e use of people (employees) to achieve organizational and
individual goals”.
Byars and Rue
define HRM as
-
“Human resource management encompasses those activities designed to
provide for and co
-
ordinate the human resources of an organization”.
According to
Wendell French
-
“
Human resources management is the systematic planning and control
of a network of fundamental organizational processes affecting and involving all organizational
members. These processes include human resource planning, job a
nd work design, job analysis,
staffing, training and development, performance appraisal and review, compensations and reward,
employee protection and representation and organization improvement”.
According to
Dale Yoder
-
“
The management of human resources
is viewed as a system in which
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participants seeks to attain both individual and group goals ”.
According to
Flippo
-
“ Human Resource Management is
-
“
The planning, organizing, directing and
controlling of the procurement, development, compensation, integra
tion, maintenance and
reproduction of human resources to the end that individual, organizational and societal objectives are
accomplished”.
“
Personnel management is a responsibility of all those who manage people as well as being a
description of the work
of those who are employed as specialists. It is that part of management which
is concerned with people at work and with their relationships within an enterprise. It applies not only
to industry and commerce but to all fields of employment.
1.2 Importance o
f HRM
Human resources, along with financial and material resources contribute to the production of goods and
services in an organization. This is where human resource management plays a crucial role. The
significance of human resources management can be di
scussed at four levels:
-
•
Corporate level
•
Professional level
•
Social level and
•
National level
Corporate Level
Good human resource practices can help in attracting and retaining the best people in the organization.
Planning alerts the company to the types of
people it will need in short, medium and long run. HRM can
help an enterprise in achieving its goals more efficiently and effectively in the following ways:
-
Attracting and retaining talent through effective human resource planning, recruitment, selectio
n,
compensation and promotion policies.
Developing the necessary skills and right attitudes among the employees through training. Securing willing
co
-
operation of employees through motivation.
Utilizing effective by the available human resources.
Professional Level
Effective management of human resource helps to improve the quality of work life. It contributes to
professional growth in the following ways:
-
Providing maximum opportunities of personal development of each employee. Allocating work pr
operly
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and scientifically. Maintaining healthy relationships between individuals and groups in the organization.
Social Level
Sound human resource management has a great significance for the society.
The society, as a whole, is the major beneficiary of goo
d human resource practices.
Employment opportunities multiply
Scarce talents are put to best use.
Organizations that pay and treat people well, always race ahead of others and deliver excellent results.
Maintain a balance between the jobs available and job
seekers in terms of numbers, qualifications, needs
and aptitudes.
Provides suitable employment that provides social and psychological satisfaction to people.
National Level
Human resources and their management play a vital role in the development of a nat
ion. There are wide
differences in development between countries with similar resources due to differences in the quality of
their people. Countries are under development in a country depends primarily on the skills, attitudes and
values of its human resou
rces. Effective management of human resources helps to speed up the process of
economic growth which in turn leads to higher standards of living and fuller employment.
1.3 Evolution of Human Resource Management
-
An Introduction
The origin of human resourc
e management can be found whenever enlightened employers have tried over
the years to improve the lot of their workers. Kautilya has observed that there existed a sound base for
systematic management of human resources in the fourth century B.C. Moses orig
inated the principle of
division of labour in 400 B.C. The Babylonians had a code for incentive wage plans in 1800 B.C. Though
Human resource management in some form or the other has been practiced in various parts of the world
since the dawn of civilizati
on. With the onset of the industrial Revolution, the position underwent a radical
change.
“Industrial Revolution
” is a word used to describe a number of changes, which took place in England
between 1760 and 1850. It brought about far reaching changes in th
e economic life of people. Numerous
inventions took place during that period which changed the entire system of production and distribution.
The use of machines involved a change in the methods of industrial organization and brought about a
change from the
domestic system to factory system of production involving large scale and complex
division of labour. The discovery of steam, as an important source of power, helped to increase the
production many times. The use of machines necessitated large amount of c
apital, which led to
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concentration of economic power and growth of large enterprises.
It is against this background that we trace the origin of modern Human Resource Management.
Scientific Management
Scientific management
is one of the classical schools of thoughts in management. This approach was
initially formulated with the aim of increasing productivity and makes the work easier by
scientifically studying work methods and establishing standards.
Frederick W. Taylor
pla
yed the dominant role in formulating this theory and he is usually named as
the father of scientific management. Scientific management, sometimes called Taylorism, has a
strong industrial engineering flavor. Taylor himself was a mechanical engineer whose p
rimary aim
was
maximizing profits
and
minimizing costs of production.
The guiding principle of this school was
"getting the most out of workers".
Taylor disliked wastage and inefficiency. During his time, in some working areas, employees tended
to work at
a slower pace. And this tendency, according to him, was a cause for less productivity and
efficiency. Managers were unaware of this practice because they had never analyzed the jobs closely
enough to determine how much the employees should be producing.
Fr
ederick Taylor based his management system on production
-
line time studies. Instead of relaying
on traditional work methods, he analyzed and timed each element of workers' movements on a
series of jobs.
Once Taylor has designed the job, he thereby establis
hed how many workers should be able to do
with the equipment and materials at hand. Next, he implemented a piece
-
rate pay system. Instead of
paying all employees the same wage, he began increasing the pay of each worker who met and
Fig.
1.2 Stages in the evolution of Human Resource Management
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exceeded the target leve
l of output set for his job.
Taylor encouraged employers to pay more productive workers at a higher rate than others. To
realize this he developed a differential rate system, which involves the compensation of higher
wages to more efficient workers (Stoner
& Freeman, 1992).
Frederick Taylor rested his philosophy on some basic principles (Stoner & Freeman, 1992):
1.
The development of a true science of management, so that the best method for performing
each task could be determined.
2.
The scientific selection of
workers, so that each worker would be given responsibility for the
task for which he best suited.
3.
The scientific training (education) of the worker.
4.
Intimate, friendly cooperation between management and labour.
5.
A division of responsibility between
management and labour.
Frederick Taylor saw scientific management as benefiting both management and the worker
equally:
management could achieve more work in a given amount of time; the worker could
produce more and hence earn more
-
with little or no additi
onal effort.
Taylor strongly believed
that employees could be motivated by economic rewards, provided those rewards were related to
individual performance.
Scientific management, according to Rue and Byars (1992), was a complete mental revolution for
both
management and employees toward their respective duties and toward each other. It was, at
that time, a new philosophy and attitude toward the use of human effort. It emphasized maximum
output with minimum effort through the elimination of waste and ineffic
iency at the operative
level.
Scientific management basically had a focus on such areas as:
4
techniques of production
4
the most efficient method
4
rigid rules of performance
4
using the shortest time
possible
4
workers productivity /efficiency
4
minimum
cost of production hence maximum profit
4
highly
refined tools and materials
4
training and closer
supervision, etc.
Scientific management, because of its fundamental ideas, has been subject to strong critics. This
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school of thought was and still is consid
ered to be limited by its basic assumptions, particularly,
about human beings.
During the time of Taylor, the popular model of human behavior held that people were rational and
motivated primarily to satisfy their economic and physical needs. Employees wer
e considered as
an
extension of machine
,
as a factor of production, and as an economic unit
. Thus, employees,
according to Taylor, could be motivated solely by economic rewards or material gain. Nevertheless,
the Taylor's model of motivation overlooked the
human desire for job satisfaction and the social
needs of workers as a group, failing to consider the tensions created when these needs are frustrated.
Furthermore, the emphasis on productivity and profitability led some managers to exploit both
workers a
nd customers of the organization. As a result more workers started to join labour unions to
challenge the behavior of management.
The Human Relations Movement
The human relations movement, as the name implies is said to stress the human element in the work
place. This movement was started as a reaction against the doctrines and practices of scientific
management. According to the beliefs of this theory, labour is not a commodity to be bought and
sold. Workers must be considered in the context of the groups
of which they are a part (Griffith,
1979).
The human relation was interdisciplinary in nature. It was founded on new knowledge's developed in
the areas of psychology, group dynamics, sociology, political science, and labour economics.
The human relations m
ovement basically grew from the Howthrone Experiments conducted by a
scholar known as
Elton Mayo.
After extensive studies, Elton Mayo argued that workers respond
primarily to other social context of the work place, and his conclusions include:
4
Work is a
group activity
4
the need for recognition, security, and a sense of belonging is more important in determining
workers' morale and productivity than the physical conditions under which he works.
4
The worker is a person whose attitudes and effectiveness ar
e conditioned by social demands
from both inside and outside the work place.
4
Informal groups within the work place exercise strong social controls over the work habits
and attitudes of the individual worker.
The proponents of scientific management are cr
iticized to look on the employee as an economic
unit, a factor of production, and an extension of a machine who is motivated only by a desire for
material gain. The human relationists, on the other hand, considered the worker as
a complete
human being with
attitudes and needs
which profoundly affected his work. It follows then that
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organizations must provide for the satisfaction of all human needs to obtain the most from their
employees.
Scientific management did not consider the existence of informal relat
ionship as it exists side by
side with the formal one. As recognized by the human relationists,
informal organizations
exist and
play important part in the life of the worker. Informal organizations consist of social relationships
among employees.
Informal
organization is voluntary in origin, its purpose is not clear, it has no hierarchy of positions
and it ceases to exist when its members left. Many workers get their satisfaction in the informal
groups where they are treated as individuals, not as a part o
f a machine in the plant. The friendliness
and recognition of their co
-
workers compensate for their impersonal treatment by the large and
complex formal organization.
In these informal and shifting groupings, leaders arise. They are not elected or appointe
d, they have
no legal standing, but they assume leadership roles on the basis of their colleagues' esteem, and
together they constitute the informal authority structure.
The attitude of an employee's primary group, as voiced by the group leader, may determ
ine whether
an official directive will be supported or subverted, whether employees will cooperate with
administrators, or whether work norms will be raised or lowered. The group can influence a member
to interpret rules narrowly or broadly, to slow down t
o speed up, to comply or resist.
A skillful administrator knows the various informal organization in his work environment and he
knows their leaders. In discussion with the leaders of informal groups, he hears opinions, which
might not be openly expressed
in formal meetings. This leader recognizes that the informal
organization adds a flexible dimension, which enables the formal organization to adjust to special
cases and situations.
After several studies and investigations Elton Mayo and his associates tri
ed to show that workers
primarily respond to group, not as individuals. It follows, then, that
administrators
should not deal
with workers as individual units, isolated from those they work with, but as members of work
groups subject to group pressure.
The
human relations movement also emphasizes that:
•
Communication is the life blood of an organization. Therefore, unlike the thinking of the
classical school, information must flow freely, up, down, and horizontally through
established net works of the formal
organization and non
-
official networks of the informal
organization,
•
Participative decision making has strong motivating force. Participation in decision
making increases members' level of satisfaction, their enthusiasm for their organization
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and their po
sitive attitude towards their organization and their superiors.
Paternalistic Era
Robert Owen a British industrialist is considered to be excellent in management thought. He was manger of
different cotton textile mills between1800 to 1828. He brought many
social changes and was the first
person who gave due emphasis for labour welfare. Robert Owen, who is considered to be the father of
personnel management, worked for the welfare of the workers and tried to develop a spirit of co
-
operation
between the worke
rs and the management. He was of the view the returns from investment is human
resources would be much higher than the investment in machinery and equipment. He worked for the
betterment of workers and tried to improve their working conditions.
Robert Owen
adopted a paternalistic attitude towards his employees. He regarded the workers as children
who must be cautiously guided, trained and protected. He therefore improved the conditions of employees
by removing them from adverse environmental conditions and
provided them with satisfactory working and
living conditions. He advised other manufacturers to devote more attention on workers in order to increase
productivity because the workers according to Owen are the vital machines. The views of Robert Owen
were
strongly supported by Charles
Babbage. According to Babbage
-
“
the emphasis should be on multiplicity of interests between employers
and workers and on the division of labour, for such division of labour would reduce the waste in raw
materials, achieve savi
ngs through more effective placement of workers, produce economies through a
different wage scale based on skill levels, save time by merely switching from task to task, gain efficiencies
stemming from familiarization with special tools and stimulate worke
rs inventions pertaining to tools and
method”.
Industrial psychology Era
Application of psychology to business and industry (Industrial psychology) began to emerge in 1890‟s and
1900‟s as psychologists studied selling techniques and ways of testing job can
didates. The most notable
industrial psychologist was Hugo Munsterberg, whose major contribution were
-
•
The analysis of jobs in terms of their physical, mental and emotional requirements and
•
The development of testing devises for selecting workers.
In Indus
trial psychology area, greater emphasis was give to individual and group relationship in the work
place. The role of psychology and sociology in the understanding of individual and group behavior in an
organization was emphasized.
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Hugo Munsterberg is regar
ded as the Father of industrial psychology. His contributions to industrial
management were particularly notable in the field of emotional requirements of works. Top management
personnel began to realize the “
human resources are the most valuable assets th
at any organization
possesses and that without these, other resources are useless
‟.
The Behavioral Science Era
Further enquiry and experimentation led researchers to conclude that productivity depended at least in part
on the extent to which the employees
become a team and co
-
operated wholeheartedly and spontaneously.
Worker co
-
operation and enthusiasm seemed to be related to the interest in the work group shown by the
supervisor and experimenters, the lack of coercion or force, and the extent to which work
ers participated in
making decisions and changes that would affect them.
Human relationists made very significant contribution to management thought by bringing into limelight
human and social factors in organization. The behavioural science movement is an
outgrowth of the human
relations studies. The method of research in the behavioural era made use of data obtained from
experiments, observations and surveys in discipline like sociology, anthropology, psychiatry, sociology,
social psychology and psycholog
y.
The various theories formulated in the Behavioural science era are
-
(i)
Maslow’s Need Hierarchy Theory or Deficit Theory of Motivation:
-
According to
Abraham Maslow
who propounded the need hierarchy theory
-
“
There is a series
of needs some of which are l
ower in the scale or system of values, in individual or social and
some are higher. Higher needs cannot be satisfied or even felt while the lower needs remain
unsatisfied. A satisfied need is not a motivator
”.
The features of his theory are as follow:
-
1.
People have a wide range of needs, which motivate them to strive for fulfillment.
2.
Human needs can be definitely categorized into five types: physical needs, safety or security needs,
affiliation or social needs, esteem needs, and self
-
actualization needs.
3.
These needs can be arranged into a hierarchy. Physical needs are at the base whereas self
-
actualization needs are at the apex.
4.
People gratify their physical needs first, when the need is satisfied, they feel the urge for the next
higher level need.
5.
Relativ
e satisfaction of lower level need is necessary to activate the next higher level need.
6.
A satisfied need does not motivate human behaviour. It only triggers or activates the urge for the
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1.4 Human Resources Management Objectives
•
To help the organization re
ach its goals.
•
To ensure effective utilization and maximum development of human resources.
•
To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure
reconciliation of individual goals with those of the organization.
•
To
achieve and maintain high morale among employees.
•
To provide the organization with well
-
trained and well
-
motivated employees.
•
To increase to the fullest the employee's job satisfaction and self
-
actualization.
•
To develop and maintain a quality of work life
.
•
To be ethically and socially responsive to the needs of society.
•
To develop overall personality of each employee in its multidimensional aspect.
•
To enhance employee's capabilities to perform the present job.
•
To equip the employees with precision and clar
ity in transactions of business.
•
To inculcate the sense of team spirit, team work and inter
-
team collaboration
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Chapter two
Human Resources Management Environment
Many interrelated environmental factors affect human resource management. Such factors are part of either
the
organization's external environment or its internal environment.
The organization has little, if any,
control over how the external environment af
fects management of its human resources. These factors
impose influences of varying degrees on the organization from outside its boundaries. Moreover, important
factors within the firm itself also have an impact on how the organization manages its human re
sources.
The environment of an organization consists of the conditions, circumstances, and influences that affect
the organization's ability to achieve its objectives. Every organization exists in an environment that has
both external and internal componen
ts. As such, a human resource management programme functions in a
complex environment both outside and inside the organization. Human resource managers therefore should
be aware that rapid changes are occurring within the environment in which organizations
operate.
2.1
The External Environment
According to Griffin (1990), the external environment consists of everything outside an organization that
might affect it. However, the boundary that separates the organization from the external environment is not
always
clear and precise. The external environment has a significant impact on human resource
management policies and practices. It helps to determine the values, attitudes, and behavior that employees
bring to their jobs.
The external environment is composed of
two layers: the general environment and the task environment.
The General Environment
An organization's general environment
consists of the nonspecific dimensions and forces in its
surroundings that might affect the organization'
s activities. These elements are not necessarily associated
with other specific organization or groups. Instead, they are general forces or processes that interact with
each other and also affect the organizations as a whole. Each embodies conditions and e
vents that have the
potential to influence the organization and its human resource management activities in significant ways.
The general environment of most organizations has the following dimensions:
1)
The Economic Environment
The economic environment
refe
rs to the general economic conditions and trends that may affect the
human resource management activities of an organization. The economic variables include
unemployment, demand and supply, inflation, interest rates, the labour market, and others.
When, fo
r example, unemployment is high, the organization is able to be very selective about whom
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it hires. Increased or decreased demand for a firm's products or services will have important
implications for recruitment or layoff
.
Inflation has had a significant
impact on human resources
programme, necessitating periodic upward adjustments in employee compensation.
2)
The Technological Environment
The technological environment
includes advances in sciences as well as new developments in
products, processes, equipment, machinery and other materials that may affect an organization.
Technological advancements have tended to reduce the number of jobs that require little skill and
t
o increase the number of jobs that require considerable skill. Technological advances also have
training implication. The challenging areas in human resource management will be training
employees to stay up with rapidly advancing technology. Because, as te
chnological changes
occur, certain skills also are no longer required. This necessitates some retraining of the current
workforce.
3)
The Socio
-
Cultural Environment
The socio
-
cultural dimension
of the general environment is made up of the customs, values, and
demographic characteristics of the society in which the organization functions.
The socio
-
cultural dimension influences how employees feel about an organization. Human
resource management, today, has become more complex than it was when employees were
con
cerned primarily with economic survival. Today, many employees have more social concerns
than mere economic interest as early times.
4)
The Political
-
Legal Environment
Political variables
are the factors that may influence an organizations activity as a resul
t of the
political process or climate. The political
-
legal environment is also made up of the laws and
regulations within which an organization conducts its affairs.
Government has a significant impact on human resources management. Each of the functions
p
erformed in the management of human resources, from employee recruitment to termination, is
in some way affected by laws and regulations established by the government. Human resource
managers must follow all laws and government regulations.
5)
The Physical En
vironment
The
physical environment
includes the climate, terrain, and other physical characteristics of the
area in which the organization is located. The physical element can help or hinder an
organizational ability to attract and retain employees. Housin
g and living costs can vary from one
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location to another and can have a significant impact on the compensation, employees will expect.
The Task Environment
The
task environment
of an organization consists of individuals, groups, and organi
zations that
directly affect a particular organization but are not part of it. The task environment refers to the
specific environment of an organization and may include (Barney, 1992):
•
The Customers
•
The Suppliers
•
The Regulators
•
The Owners
•
The Competitors
•
The Partners
All these elements are much close and specific to
a given organization. Whereas the elements of
the general environment affect virtually all
organizations in the society, the elements of the
task environment are pertinent (more relevant) to
a
specific organization.
2.2
The Internal Environment
The environment that exists within an
organization is known as the internal
environment.
The internal environment
consists
those factors that affect an organization's human
resources from inside its boundarie
s. The internal
environment of an organization includes (Mondy
& Noe, 1990):
• Mission
Mission is the organization's continuing purpose
or reason for its existence. Each management
level should operate with a clear understanding
of the firm's mission.
The
specific organizational mission must be
regarded as a major internal factor that affects
the tasks of human resource management.
• Policy
A policy is a predetermined guide established to
provide direction in decision making. As guides,
rather than hard and
fast rules, policies are
somewhat flexible, requiring interpretation and
judgment in their use. They can exert significant
influence on how human resource managers
accomplish their jobs.
Although policies are established for marketing,
production, and fin
ance, the largest number of
policies often relate to human resource
management. Some potential policy statements
that affect human resource management are:
•
To provide employees with a safe place
to work
•
To encourage all employees to achieve
as much of thei
r human potential as
possible
•
To provide compensation that will
encourage a high level productivity in
both quality and quantity.
•
To ensure that current employees are
consideredfirst for any vacant position
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for which they may be qualified.
Organizational C
ulture
As an internal environmental factor affecting
human resource management, organizational
culture refers to the organization's social and
psychological climate. Organizational culture is
defined as the system of shared values, beliefs,
and habits with
in
an organization that interacts with the formal
structure to produce behavioral norms.
Other factors include:
•
The organization's management
•
The organization's employees
•
The organization's structure
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The organization
'
s rules and
procedures etc.
2.3 Human Resources Management Model
The Human Resource Management Model includes four interrelated phases (Milkovich & Boudreau, 1991):
Assess human resource conditions
.
..
Diagnosis
Set objective based on the assessment..
Prescription
Choo
se a course of action from alternatives generated to achieve objectives.
Prescription
Implement the
Courses of Action.
Implementation
Evaluate the results (evaluating the results provides feedback on the success of the actions)
....
Evaluation
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Chapter three
Job Analysis and Human Resources Planning
3.1
Meaning and Definition of Job Analysis
Job Analysis
A job in an organization is created when tasks, duties and responsibilities justify hiring of one
or more people for
accomplishing the organizational purposes. A
Job
according to Mondy and Noe (1990) consists of a group of tasks
that must be performed for an organization to achieve its goals. A job may need the services of one individual, such
as that
of the Prime Minister or the services of ten or more, as might be the case with ministers in a country. In a
work group consisting of an
auditor
,
two
chief accountants,
and three
accounting clerks,
there are a total of
three jobs and six positions. A
posi
tion
is the collection of tasks and responsibilities performed by one person;
there is a position for every individual in an organization (Mondy & Noe, 1990). If a job is so fundamentally
important in an organization, what then is a job analysis?
Job analy
sis
is the systematic process of determining the
skills, duties
and
knowledge
required for performing
jobs in an organization (Mondy & Noe, 1990). It is an important human resource techniques and is also a method
that enable to obtain information regarding
jobs available in the organization.
The major purpose of job analysis is to provide answers to the following six important questions ( Mondy & Noe,
1990).
1.
What physical and mental tasks does the worker accomplish?
2.
When is the job to be completed?
3.
Where is
the job to be accomplished?
4.
How does the worker do the job?
5.
Why is the job done?
6.
What qualifications are needed to perform the job?
In most cases,
job analysis
is carried out because of changes in the nature of jobs. It is used to prepare both
job
descrip
tions
and
job specifications
.
The
job description
is a written statement that explains the title, duties,
responsibilities, working conditions, and other aspects of a specified job.
Job specification,
on the other hand,
describes the skill, knowledge, work
experiences required to perform the job. (Milkovich & Bourdean, 1991)
3.2
Steps in Job Analysis
Below are six steps in doing job analysis:
Step number 1
: Decide how you will use the data information, since this will determine the data you collect and
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how you
collect them.
Some data collection methods such as interviewing the employee and asking job entail. Another methods, like
position analysis questionnaire.
Step number 2
: Review relevant background information such as organization charts, job descriptions a
nd
process charts. Organization chart shows the organization wide division of work, how the job in question relates to
other jobs, and where the job fits in the whole organization. A process chart provides more detailed picture of the
work flow.
Finally, t
he existing job description usually provides a starting point for building the revised job description.
Step number 3
: Selecting representative positions: Because there may be too many similar jobs to analyse.
Step number 4
: Actually analyse the job: By
collecting data information on job activities, required employee
working conditions, human traits, abilities and employee behaviours.
Step number 5
: Verify the job analysis information with the employee performing the job and with his/her
supervisor.
Step
number 6
: Develop job description and specification. Both of them are two tangible products of job analysis.
Job description is a written statement that describes the activities and responsibilities of the job and also working
conditions and safety hazards
. Job specifications underline the personal qualities, skills, traits, background required
for the job needed.
3.3
Methods of Collecting Job Analysis Information
Job analysis information provides the base for human resource information system. Basically, in or
der to get
information for job analysis, the job analyst need to know that
organization and the work it performs.
Methods used to conduct job analysis are different; this is because organizational needs and resources for
conducting job analysis differ. How
ever, some of the most common
methods of obtaining information for job
analysis are:
1)
Questionnaires
2)
Interviews
3)
Observation
4)
Employee Log
5)
Combination of Methods
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Questionnaires
To study jobs, job analyst design questionnaires to collect information uniformly. These questionnaires reveal the
duties and responsibilities, human characteristics
and
working conditions
and
performance standards
of the job to
be investigated. The questi
onnaire method is quick and economical to use. However, accuracy is lower because of
misunderstood questionnaires (Werther & Davis, 1996). Since, there is a possibility that some workers may tend to
exaggerate the significance of their tasks, suggesting mo
re responsibility than actually exists; the same type of
questionnaire can also be administered to supervisors to verify the worker responses.
Interviews
Face
-
to
-
face conversation is an effective method to collect job information. This method provides an o
pportunity
for the interviewer "to explain unclear questions and probe into uncertain answers (Werther & Davis, 1996). The
job analyst often talks with a limited number of employees first, and then contacts the supervisors for checking the
accuracy of the
information obtained from the employees. Although, the interview method is time
-
consuming and
expensive, but the method ensures a high level of accuracy.
Observation
The observation method is slow and less accurate than other methods. This is because the j
ob analyst may miss
irregularly occurring activities. Nevertheless, actual observation acquaint the analyst with the machines, tools,
equipment's and work aids used, the work environments and to obtain visual impression of what is involved in the
job. Acco
rding to Armstrong (1996), this method is used primarily to study jobholders at work, noting what they
do, how they do it, and how much time it takes. Moreover, it enables the analyst to see the interrelationships
between mental and physical tasks. However
, observation alone is usually an insufficient means of conducting job
analysis, particularly when mental skills are dominant in a job (Mondy & Noe, 1990).
Employee Log
This method enables the job analyst to collect job data by having the employees summari
ze their work activities in
a diary or log. If entries are made over the entire job cycle, the diary can be quite accurate and feasible way of
collecting job information (Chatterjee, 1995). This method is not popular because it is time
-
consuming and less
r
eliable as some employees may tend to exaggerate their tasks. However, valuable understanding of highly
specialized jobs, such as a financial analyst, may be obtained in this way (Mondy & Noe, 1990).
Combination of Methods
Since each method of obtaining in
formation for job analysis has its own defects, job analyst often rely on
combinations where two or more techniques are used concurrently. For example, in annualizing clerical and
administrative jobs, the analyst might use questionnaires supported by inter
views and limited observation (Mondy
& Noe, 1990). On the other hand, in analyzing production jobs, interviews supplemented by work observation may
provide the required information. Combination of methods can ensure high accuracy at minimum costs. Basicall
y,
the job analyst would employ the combination of methods required to carry out an effective and efficient job
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analysis.
Result of Job Analysis
The job information collected by using one or more job analysis methods allow management to draw up a job
descr
iption, job specifications and job standard.
Job Descriptions
Information collected by using one or more job analysis techniques allows management to develop job
descriptions. A job description is a written statement of what employee does, how it is done a
nd why it is done. In
other words, the job description contains the total requirements of the job, i.e. who, what, where, when why and
how.
According to Mondy and Noe (1990), among the items frequently included in a job description is:
Major duties perform
ed
•
Percentage of time devoted to each duty.
•
Performance standards to be achieved.
•
Working conditions and possible hazards.
•
Number of employees performing the job and how they report to.
•
The machines and equipment used on the job.
Within an organization,
all the job descriptions should follow the same format, although the form and content may
differ from organization to organization. A sample of job description for a secretary in an
-
organization is provided
in the exhibit (Mondy & Noe, 1990) below.
3.4
Import
ance of Job Analysis Information
Directly outcomes / results of
job analysis
are job description
and job
specification
. Apart from job
description and job specification, Functions / benefits of job analysis include elements as below.
1.
Purpose of job analysi
s in Recruitment and Selection:
Job analysis is very important for contents as:
•
Job duties that should be included in advertisements of vacant
positions
;
•
Appropriate salary level for the position to help determine what salary should be offered to a
candidate;
•
Minimum requirements (education and/or experience) for screening applicants;
•
Interview questions;
•
Selection tests/instruments (e.g., written tests; oral tests; job simulations);
•
Applicant appraisal/
evaluation forms;
•
Orientation materials for app
licants/new hires
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2.
Purpose of job analysis in Job evaluation
•
Judges relative worth of jobs in an organization
•
Sets fair compensation rates
3.
Purpose of job analysis in Job design
•
Reduce personnel costs, streamline work processes,
•
Increase productivity and emp
loyee empowerment,
•
Enhance job satisfaction and provide greater
scheduling
flexibility for the employee.
•
Simplify job with too many disparate activities
•
Identifies what must be performed, how it will be performed, where it is to be performed and who will
p
erform it.
4.
Purpose of job analysis in Compensation and Benefits:
Job Analysis can be used in compensation to identify or determine:
•
Skill levels
•
Compensation job factors
•
Work environment (e.g., hazards; attention; physical effort)
•
Responsibilities (e.g.,
fiscal; supervisory)
•
Required level of education (indirectly related to salary level
5.
Importance of job analysis in Performance Appraisal:
Job Analysis can be used in performance review to identify or develop:
•
Goals and objectives
•
Performance standards
•
Leng
th of probationary periods
•
Duties to be evaluated
•
Evaluation criteria
6.
Importance of job analysis in Training and development:
Job Analysis can be used in training needs assessment to identify or develop:
•
Training content
•
Assessment tests to measure
effectiveness of training
•
Equipment to be used in delivering the training
•
Methods of training (i.e., small group, computer
-
based, video, classroom...)
7.
Job analysis increases productivity
How a job analysis increases productivity?
•
Job analysis also
identifies performance criteria so that it promote worker for best performance.
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•
Job analysis can use methods of time and motion study or micro
-
motion analysis in order to time and
motion for job.
8.
Importance of job analysis in Compliance with labor law:
•
Ide
ntify requirements in compliance with
labor law
.
•
Compliance with Civil Rights Legislation in US.
•
EEO (Equal
Employment Opportunity)
compliance in
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Chapter four
Recruitment and Selection
Definition of Recruitment
According to
Kempner
-
“Recruitment forms the first stage in the process which continues with selection and
ceases with the placement of the candidate”. Usually, the selection process starts with the indent for recruitment by
the departmental heads. These indents specify the re
asons why recruitment is to be made. These indents are sent to
the personnel department. The personnel department has to check the financial implications of the recruitment to
find out whether the additional expenses would be within the budgetary provision
s. If everything is as per norms,
the recruitment is allowed and the initial pay and other allowances are determined. Recruitment makes it possible to
acquire the number and type of people necessary to ensure the continued operation of the organization.
Ac
cording to
Flippo
-
Recruitment “is a process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization”.
In the words of
Mamoria
-
“Recruiting is the discovering of potential applicants for actual or an
ticipated
organizational vacancies”.
Yoder
is of the opinion that
-
“Recruitment is a process to discover the sources of manpower to meet the
recruitments of the staffing schedule and to employ effective measures for attracting that manpower in adequate
num
bers to facilitate effective selection of an efficient working force”.
Thus, recruitment is the generating of applications or applicants for specific positions. It is a linking activity
bringing together those with jobs and those seeking jobs. Recruitment
is therefore the process of searching
prospective workers and stimulating them to apply for jobs in the organization.
4.2
Sources and methods of Recruitment
Basically, the sources of recruitment are of two types: Internal sources and External sources.
Internal
sources
Internal sources include personnel already on the pay roll of an organization. Filling a vacancy from internal
sources by promoting people has the advantages of increasing the general level of moral of existing employees and
of providing to the co
mpany more reliable information about the candidate. Among the internal sources, the
following may be included.
(a)
Promotions (b) Transfers and Response of employees to notified vacancy.
Merits of internal sources of recruitment:
Internal sources of recruitme
nt have the advantage of absorbing people already acquainted with the company
culture.
Our employees are tried and tested people and we can depend on them.
It is a useful signal to employees and assures them that their services are recognized and this help
s in maintaining
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5
their motivation and morale.
It reduces labour turnover as it gives employees a sense of job security and opportunity for advancement.
Our employees are fully acquainted with the organization hence job training can be reduced.
Internal sou
rces of recruitment are less costly than the other sources of recruitment.
Demerits of internal sources of recruitment:
An internal source of recruitment suffers from certain demerits they are:
-
It limits
the choice to a few employees only.
The likes and
dislikes of the superiors play an important role in the selection of an employee.
It creates frustration among those employees who are not selected.
External sources of Recruitment:
These sources lie outside the organization. They may come through the foll
owing sources:
-
(a)
Advertisements b) Employment exchanges Campus recruitment Unsolicited applicants
Labour contractors Employee referrals and Field trips
(
a) Advertisement
:
-
Advertising in newspapers, trade journals and magazines is the most frequently
used method.
In order to be successful, an advertisement should be carefully written. If it is not properly written, it may not draw
the right type of applicants or it may attract too many applicants who are not qualified for the job. Therefore, a well
-
tho
ught out and planned advertisement for an appointment reduces the possibility of unqualified people applying.
Organizations often spend large amounts of money and time in advertisement. A well
-
designed advertising copy
should contain the following 4 basic
steps:
-
•
Attracting Attention
•
Developing interest
•
Arousing desire and
•
Generating action.
These 4 basic steps is called AIDA formula Appropriate appeals or pulls must be given special attention to
maximize the pulling effect of advertising copy. Since poten
tial candidates are first introduces to the company
through advertisement, image building can be made effective at this stage.
There are three different types or methods of advertisement followed by organization. They are:
-
Using post box
Numbers:
-
Some o
rganizations do their own advertising. This advertisement carries only a post box number instead
of the company‟s name and address. But this method is generally not advisable as good candidates who that it is
worthwhile to apply for a job without knowing t
he prospective employer.
Engaging Specialized Agencies:
-
Some organizations do not do their own advertising. They make use of specialized
agencies, which advertise positions without divulging the name of their client.
Direct Advertisement:
-
Some organizati
ons do their own advertising and give their names and address of the
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organizations. This direct method is advisable as applicants get an idea about the particular organization they apply
to.
(b)
Employment Exchanges:
-
An employment exchange is an office set
up for bringing together as quickly as
possible candidates searching for employment and employees looking for prospective employees. The main
functions of employment exchange are registration of job seekers and their placement in notified vacancies.
Employ
ment exchanges have answered a great need in placing workers in suitable vacancies. Employment
exchanges register unemployed candidates and maintain the records of their names, qualifications etc. When the
employers intimate the exchange about the vacancie
s available in their organizations, the exchange selects the
suitable candidates among the employment seekers who have registered with them and forwards their names to the
employers for consideration. There are 2 types of employment exchanges Government Em
ployment exchanges and
private employment agencies.
(c)
Campus Recruitment:
-
Sometimes, recruiters are sent to educational institutions where they meet the
placement officer or the faculty members who recommend suitable candidates. This system is prevalent in
U.S.A
where campus recruitment is a major source. However, today the idea of campus recruitment has slowly caught up
the fancy of Indian employers. The advantages of this method are that most of the applicants are present at one
place and the recruitment
can be arranged at a short notice. The recruiters can meet the faculty members and obtain
an idea of the course content. The disadvantage of the campus recruitment is that it is neither feasible nor attractive
for felling higher
-
level position. The method
can be used only for “entry level position”.
(d)
Unsolicited applicants:
-
Unsolicited applicants are another source. Some candidates send in their applications
without any invitation from the organization. An recruiter can use these unsolicited applications f
or appointment as
and when vacancies arise. However, this source is uncertain.
(e)
Labour Contractors:
-
Many organizations employ labor contractors to hire workers. This method is usually
resorted to when the work is of a temporary nature.
(f)
Employee referrals:
-
Friends and relatives of present employees are also a good source from which employees
may be drawn. Some organization with a record of good personnel relations encourages their employees to bring
suitable candidates for various openings in the organiza
tion. This method of recruitment has the advantage of the
new recruit being familiar with the organization and its culture. The disadvantage of this system is that it
encourages nepotism and cliques of relations and friends may be formed in the organizatio
n.
(g)
Field Trips:
-
An interviewing team makes trips to towns and cities which are known to contain the kinds of
employees required. These traveling recruiters are sent to, educational and professional institutions, employees‟
contracts with public and manua
l exhibits. In this method of recruitment, carefully prepared brochures describing
the organization and the job it offers are distributed to the candidates before the interviewer arrives. The arrival
dates and the time and venue of interview are giving to
the candidates in advances.
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Merits of external sources of Recruitment:
-
Fresh
talent and skill comes into the organization.
New employees may try change old habits.
New employees may be selected at the terms and conditions of the organization.
Highly qual
ified and experienced employees may help the organization to come up with better performance.
Since persons are recruited from a large market, the best selection can be made. In other words, the recruiter has a
wide range of candidates to choose from.
Eter
nal sources provide the requisite type of personnel for an organization, having the required skill and standard
External sources of recruitment are economical because potential employees do not need extra training for their
skills.
Demerits of external sou
rces of Recruitment:
-
Eternal sources of recruitment reduce the morale of employees because outsiders are preferred to fill up superior
vacancies. Eternal sources of recruitment deny carrier advancement for employees.
The recruiter may not be in a
position to properly evaluate outside candidates because the time available at his
disposal is very less. This may result in faulty selection of employees.
Outsiders are not fully acquainted with the policies and procedures of the organization. Therefore,
they should be
given training that is quite expensive.
After discussing the different sources of recruitment we can conclude that there is no hard and fast rule whether the
recruitment must be internally or externally or exclusive to each other. The best m
anagement policy regarding
recruitment must be to first look within the organization and if we are not able to locate the suitable talents, external
recruitment becomes inevitable. To use the words of Koontz and O‟Donnell “the (recruitment) policy should b
e to
rise talent rather than „raid‟ for it”.
Selection
Selection either internal or external is a deliberate effort of the organization to select a fixed number of personnel
from a large number of applicants. The primary aim of employees‟ selection is to c
hoose those persons who are
most likely to perform their jobs with maximum effectiveness and to remain with the company. Thus, in selection,
an attempt is made to find a suitable candidate for the job. In doing so naturally many applicants are rejected. Th
is
makes selection a negative function. In contract, recruitment is a positive function because in it attempt is made to
increase the number of applicants applying for the job. Selection involves three distinct but not mutually exclusive
stages.
They are
-
Recruitment, Selection and Induction
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Definition of Selection
Having identified the potential applicants, the next step is to evaluate their experience and qualifications and make a
selection. According to Yoder, “
the hiring process is of one or many go
-
no
-
go’ gauges. Candidates are screened by
the applicants go no to the next hurdle, while unqualified are eliminated”.
Great attention has to be paid to
selection because it means establishing the
“best fit between job requirements on the one hand and the cand
idates”
qualifications on the other. Faulty judgment can have a far
-
reaching impact on the organizational functioning. There
are several advantages of a proper selection procedure. As the employees are placed in the jobs for which they are
best suited. The
y derive maximum job satisfaction and cheap maximum wages. Labour turnover is reduces and the
overall efficiency of the concern is increased. And finally, a good relationship develops between the employer and
his workers.
Steps in Selection Procedure
There
is no shortcut to an accurate evaluation of a candidate. A variety of methods are used to select personnel. The
selection pattern, however, is not common for all organizations. It varies form one to another, depending on the
situation and needs of the org
anization. Therefore, there is no standard selection procedure followed by all
organization.
However the steps commonly followed are as under:
-
•
Application bank.
•
Initial interview of the candidate.
•
Employment tests.
•
Interviews.
•
Checking references.
•
Physical or medical examination.
•
Final interview and induction.
Application Blank
: In a sense the application blank is a highly structured interview in which the questions are
standardized and determined in advance. An application blank, is a traditional,
widely accepted devise for getting
information from a prospective applicant. The application blank provides preliminary information as well as aid in
the interview by indicating areas of interest and discussion. In an application blank, information is gene
rally called
as the following items:
-
Biographic data:
-
This is concerned with such variables as age, sex, nationality, height, weight, marital status and
numbers of dependents. There is very little empirical evidence to suggest that this information can
be helpful in
predicting on
-
the
-
job behaviors. However, this information can be used for future reference in case of need.
Education and past experiences:
-
Educational qualification, knowledge gained from technical institutions etc. is
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needed by the emp
loyer. Today, employers look at the grade point, percentage of marks as prerequisites for a job.
The reason is to eliminate those candidates who do not reach the required grade, However, the magnitude of
coefficients between the grade points acquired and n
o the job performance is so low that too much confidence
cannot be placed in them.
Previous experience, the nature of duties and responsibilities is often asked by the employer. Although it is often
said that the best predictor of future work is past perfo
rmance on the job, little has been done to utilize it
systematically for the selection process.
Personal items:
-
Extra
-
curricular activities, sports, hobbies, association members are often required to find out a
candidates suitability for a post.
Referenc
es:
-
References are letters of recommendation written by teachers and/or previous employers. Requesting
references is a wide spread practice with substantial doubt as to its validity. Reference checking requires the same
use of skills as required by the i
nterviewer. Some organizations have found that by assuring the referee of absolute
confidentiality, reliable and valid references have been obtained. Filling of the „application blank‟ by the candidate
is the first step in the process of selection. In this
form, the applicant gives relevant personal data such as his
qualification specialization, experience etc. The application blanks are carefully scrutinized by the company with
reference to the specifications prescribed for the jobs to decide the applicant
s who are to be called for interview.
The information sought in the application blank should be relevant to the objective of selection. The data submitted
in an application form should help predict the candidates‟ chances for making a success of his job. T
o ensure that
the information given by the applicant is true, the application blank usually carries a threat of discharge at any time
after employment if the information furnished in it proves to be false.
Initial interview:
-
Those who are selected for in
terviews on the basis of particulars furnished in the application
bank are called for initial interview by the organization. This is meant to evaluate the appearance of the candidate
and to establish a friendly relationship between the candidate of the com
pany and for obtaining additional
information on clarification on the information already on the application bank. An interview is a face
-
to face,
observational and personal appraisal method of evaluating the applicant. Its purpose is not to make a detaile
d probe
of qualifications but to refuse application forms to those who cannot be employed because of such reasons as
overage, disqualifying physical handicaps and lack of required experience or training. Preliminary interview
becomes a necessity, when a la
rge number of candidates apply for the job.
Employment tests
:
-
For further assessment of a candidate‟s nature and ablates, some tests are used in the
selection procedure. Psychologists have developed certain tests by which a candidate‟s ability, intellige
nce, etc., can
be estimated. Testing is an important stage of the selection process. If tests are properly conducted, they can reduce
the selection cost by reducing the large numbers of applicants to manageable levels. Tests are tools in evaluating the
cap
abilities of an applicant to a position. Different tests are administered to determine the suitability of candidates
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for different positions which test is to be administered depends upon the type of the job, the skills required, the
duties attached to the
job etc. The different types of tests are:
-
Aptitude test
:
-
Aptitude or potential ability tests are widely used to measure the talent ability of a candidate to
learn new job or skill. Aptitude tests measure ability and skills. They enable us to find out
whether a candidate, if
selected, would be suitable for a job. Specific aptitude tests have been designed for jobs that required clerical,
mechanical and manual abilities and skills. Aptitude tests for medicine, law painting, and other activities are also
available. The disadvantage of aptitude test is that they do not measure motivation. On the job motivation is often
found to be more important than aptitude for the job. That is why the aptitude test is supplemented by interest test
and personality tests.
Interest test
:
-
interest test is used to find out the type of work in which the candidate has an interest. An interest
test only indicates the interest of a candidate for a particular job. It does not reveal his ability to do it. These tests
aim at findin
g out the types of work in which a candidate is interested. They are inventories of the likes and dislikes
of the people in some occupations. Therefore they are useful in vocational guidance. Interest tests have been
designed to discover a person‟s area of
interest and to identify the kind of work that will satisfy him. Examples of
interest tests are “Kuder preference record” and “Strong Vocational Interest Blanks.”
Intelligence test:
-
This test is used to find out the candidate‟s intelligence. By using th
is test, the candidate‟s
mental alertness, reasoning ability, power of understanding etc., are judged. Intelligence tests are generally aptitude
tests measure the overall intellectual activity of a person and enable us to know whether he has the mental cap
acity
to deal with new problems.
Intelligence tests are useful for selection purposes and determine the futures of an employees word fluency,
memory, inductive reasoning and speed of perception. The assumption made in IQ tests is that there are various
for
ms of intelligence tests for various age groups. Ones IQ levels well increase or decrease depending upon which
age
-
level test one pass. The administration of these IQ tests calls for much preparation on the part of an
organization, and they are expensive a
nd cumbersome as well. However, it is conducted on the assumption that
intelligence testing can get bright and alert employees who can learn fast, can be trained fast.
Performance or achievement test
:
-
This test is used to measure the candidate‟s level of
knowledge and skill in
the particular trade or occupation in which he will be appointed in case he is finally selected. Achievement test
measure the skill of knowledge, which is acquired, as a result of previous experience or training secured by a
candida
te. They determine the admission feasibility of a candidate and measure what he is capable of doing.
Achievement tests measure a person‟s potential in a given area one example is the trade test which involves the
performance of a sample operation requiring
specialized skill, and believed to be satisfactorily answered by those
who have some knowledge of the occupation and trade. For e.g.:
-
A candidate for a driver‟s post may be asked to
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drive the vehicle.
Achievement tests are of two kinds:
-
a) Tests for
measuring job knowledge:
-
These tests are administered to determine proficiency. Such tests are
useful for stenographers, sales girls etc.
b) Work sample tests:
-
This test is administered on the actual job. A typing test for a typist, test the skill and
accuracy of the candidates.
(c) Personality test:
-
Personality test is used to measure those characteristics of a candidate, which constitute his
personality. Personality tests are very important in the selection process, particularly in the case of appoi
ntment to
the posts of supervisors and higher executives. Personality tests have a wider use in industry because they provide a
well
-
rounded picture of an applicant‟s personality and because mangers have to realize the importance of emotional
characteristi
cs. They assess a candidates motivation interests, his ability to himself to the stresses of everyday life
and his capacity for inter
-
personal relations and self
-
image personality tests are of three types:
-
(i)
Objective tests
-
is tests that measure self
-
suff
iciency and self
-
confidence.
(ii)
Personality tests
-
is tests, which assess a candidate‟s interpretation for certain standard stimulus situations.
This tests candidates‟ values, motives and personality.
(iii)
Situation tests
-
this test measures a candidate‟s reaction
when he is placed in a peculiar situation.
In recent years tests have become an integral part of the selection process in different types of organizations in the
country. It is more so in a majority of Government undertakings. Testing is an important stag
e of selection process.
If tests are properly conducted, they can reduce the selection cost by reducing the large groups of applicants to
manageable levels.
Interview:
-
After putting the candidates to various types of tests, all those passing out of the t
ests are finally to be
called for interview. The interview is perhaps the most intricate and difficult part of selection procedure. Interviews
are conducted to test the capabilities of the candidate to occupy a particular post. It determines his knowledge,
experience, and skill. Intelligence, general perception, mental and psychological reflexes, capacity to perceive
things quickly and capabilities to take quick and immediate decisions. Interview is probably the most widely used
selection tool. It is a sele
ction technique, which enables the employer to view the total individual and directly
appraise him and his behaviors.
The interview consists of interaction between interviewer and applicant. It handled properly; it can be a powerful
technique in achieving
accurate information and getting access to material otherwise unavailable. If the interview is
not handled carefully, it can be a source of bias, restricting or distorting the flow of communication. An interview is
thus an attempt to secure maximum amount
of information from the candidate concerning his suitability for the job
under consideration. The different types of interviews for selection are given below:
-
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• Preliminary interview
• Extensive interview
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• Non structured interview
•
Stress interview
•
Discussion interview
• Group interview
•
Structured interview
• Final interview
Preliminary interview
:
-
These interview are preliminary screening of applicants to decide whether a more detailed
interview will be worthwhile. The only argument for this method
is that it serves the company‟s time and money. In
point (2) above a detailed a detailed explanation is given for preliminary or initial interview.
Extensive interview:
-
extensive interview or depth interviews cover the complete life history of the appli
cant. It is
semi
-
structured in nature and utilizes questions in key areas, which have been studied in advance by the
interviewer.
Stress interview:
-
Stress interviews are deliberate attempts to create pressure to observe hoe and applicant performs
under s
tress. The stress interview may have some value for jobs where emotional balance is a key factor.
Discussion interview:
-
In this type of interview, the candidates enter into group discussions, knowing that the
interview is a test, but do not know which qu
alities are being measured or tested. The assumption underlying this
type of interview is that the behaviour displayed in the solution of the problem is related to potential success in the
job. A few observers watch the activities of the candidates (interv
iewees). The emphasis is on the analysis of the
interviewer‟s impressions from discussions.
Structural interview
:
-
Patterned or structural interview is based on the
assumption that, to be most effective, every detail should be sought. Questions must be as
ked in a particular order,
with very little deviation. Such interviews are also called as standardized interviews because they are pre
-
planned to
a high degree of accuracy. In this type of interview, a series of questions, which can through light on the ca
ndidate‟s
background are standardization in advance and validated against the record of employees who have succeeded or
failed on the job.
Non
-
structural interview:
-
In the non
-
structured interview, the applicant is asked some very general questions,
an
d he may reply to these in any way he likes. In this type of interview, the candidate is encouraged to express
himself freely. The objective is to find out traits, strengths, weakness etc. The purpose of such interview is to
determine what kind of person a
candidate really is. The basic procedures followed in this type of interview are the
minimum use of direct questions. The interviewer should listen carefully without interrupting and allowing pauses
in the conversation. The basic philosophy of such interv
iew is that a candidate is more likely to reveal his actual self
then when he answers set questions.
Group Interview:
-
In this type of interview, several job applicants are placed
in a leader
-
less discussion and interviewers set in the background to obse
rve and evaluate the performance of the
candidates. A
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topic for discussion is assigned and at the beginning there is no leader. The interviewer observes how one assumes
leadership and how other members of the group accept it. In this interview 5 or 6 candi
dates are placed together in a
situation in which they must interact.
Final Interview:
-
After the applicant is selected, it is advisable to sell the job to the applicant. He should be given
an idea as to this future potential within the organization. He i
s formally appointed by issuing him an appointment
better or by concluding with him a service agreement. The appointment letter contains the terms and conditions of
employment, pay scale and other benefits associated with the job.
At the end of the intervi
ew the interviewer must elicit the necessary information from the candidate if possible
through an evaluation form, Quite often, interview rating forms are used which require evaluation of various factors
relevant to the job which have been observed during
the interview besides getting an overall evaluation.
The interview process
Since the interview is one of the most commonly used personal contact methods, it has to be conducted with great
care. Generally the following steps are followed in an interview
process. They are
•
Reviewing background information.
•
Preparing a question plan.
•
Creating a helpful sitting
•
Conducting the interview.
Reviewing background information:
-
Before the actual interview begins, the critical areas in which questions will
be asked
must be identified for judging ability and skills for the job. Pertinent information about the candidate
should be collected and noted beforehand. This preparation saves time and mental efforts during the interview.
Preparing a question plan:
-
Every inter
viewer should have a question plan. This is formed by scrutinizing the
information given in the application form. This procedure will make the candidate more comfortable because the
discussion with focus on this experiences. Besides, preparing a question p
lan is useful for inexperienced
interviewers. It will act as a guide and the interviewer will know whether he has covered all the areas of the
interview.
Creating a helpful setting:
-
The place of interview should be carefully chosen. Prepare arrangements
for receptions
and seating give an impression to the interviewee that he is an important person to whom the interviewer will
devote unlimited attention. Most interviews have overtones of emotional stress for the applicant. Success in
interviewing depends o
n reducing this stress. Properly arranged seating accommodation should be made available.
The candidates should be well received by the receptionist.
Conducting the interview:
-
Conducting the interview is usually aimed at establishing rapport with the can
didate,
getting complete and accurate information from him and recording it properly. It is, therefore, necessary to use a
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number of different approaches during the course of an interview.
Checking Reference:
-
the references provided by the applicant have
to be checked. This is to find out from the past
records of the candidate. Reference checking requires the same use of skills as required by the interviewer and
diplomacy. The main difficulty is ascertaining the accuracy of information given. Besides inac
curate facts, the
referees‟ inability to assess and describe the applicant and his limited knowledge about the candidate are the
difficulties in checking references. In spite of its difficulties, it is necessary to verify the information secured. In
many o
rganizations, reference checking is taken as a matter of routine and treated casually or omitted entirely.
Physical or Medical examination
:
-
The next step is getting the candidates medically if there is a need. Quite
often the candidates are told to get m
edically examined before reporting for duty. In government and other quasi
government organizations getting medically examined is a must before reporting for duty or at the time of reporting
for duty. Medical examination is a part of the selection process
for all suitable candidates in many organizations.
Final interview and induction:
-
After the candidate is finally selected the management will have to sell the job
to him. He should be told as to what his duties are, what is required of him and what are h
is future prospects in the
organization. Normally this information is given to the candidate at the time of final selection interview. This is the
way that the candidate is inducted into the job. He is formally appointed by issuing him an appointment lette
r or by
concluding with him a service agreement. The appointment letter contains the terms and conditions of employment,
pay scale and other benefits associate with the job.
Types of induction programme
General induction programme:
-
Once an offer of
employment has been extended and accepted, the final stage in
procurement function is concluded. The individual has then to be oriental towards the job and the organization. This
if formally done through a process known as induction or orientation. Inducti
on is a welcoming process
-
the ideas is
to welcome the candidate, make him feel at home in the changed surroundings and to introduce him to the practices,
policies and purposes of the organization. The necessity of an indication programme is that when a pe
rson joins an
organization, he is a fitter stranger and is bound to feel shy, insecure and nervous. Induction leads to reduction of
such anxieties.
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i.
The people who work with you.
(ii)
The work you are responsible for.
(iii)
The result you accomplish.
(iv)
The result st
atus of the work.
(v)
Your relationships in the organization
(vi)
Reports and records you must
understand and maintain.
(vii)
Operating policies, procedures and rules
and
(viii) Service group available to help you.
Specific orientation programme:
-
At this stage, the
foreman conducts induction. Indication is specific and requires
skill on the part of the foreman. A new employee must be provided operational knowledge that is specific to the
position and location. The immediate loss (foreman) is responsible for training
induction Every new employee
should know
The purpose of specific induction is to enable an employee to adjust himself to his work environment. Follow
-
up
induction programme:
-
The purpose of follow up induction programme is to find out whether the employee
is
reasonably satisfied with the job. It is usually conducted by the foreman or by specialist from the personnel
department. Through guidance and counseling, efforts are made to remove the difficulties experienced by the new
comer. Usually, follow up indu
ction takes place after about one or two months from the time of appointment to the
follow
-
up induction programme.
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Chapter Five
Training and Development
Introduction
For any organization to perpetuate itself, through growth, there is a basic need for deve
loping its manpower
resources. It is one thing to possess knowledge but yet another thing to put it to effective use. It is essential to help
develop skills and also update the knowledge. Especially, in an rapidly changing society, employee training and
de
velopment is not only an activity that is desirable but also an activity that an organization must commit resources
to if it is to maintain a viable and knowledgeable work force.
Meaning and purpose of Training
Training is a process of learning a sequence
of programmed behavior. It is application of knowledge. It gives
people an awareness of the rules and procedures to guide their behavior. It attempts to improve their performance
on the current job or prepare them for an intended job. According to Edwin D
Flippo “The purpose of training is to
achieve a change in the behavior this objective, any training programme should try bring positive changes in:
•
Knowledge
-
it helps a trainee to know facts, policies, procedures and rules pertaining to his job.
•
Skills
-
I
t helps him to increase his technical and manual efficiency necessary to do the job and
•
Attitude
-
It moulds his behavior towards his co
-
workers and supervisors and creates a sense of
responsibility in the trainee.
Importance of Training
The
importance of
training are
-
1.
Training enables the managements to face the pressure of changing environments.
2.
Training usually results in the increase of quantity and quality of output.
3.
Training leads to job satisfaction and higher morale of the employees.
4.
Trained workers
need lesser supervision.
5.
Trained workers enable the enterprise to face competition from rival organization.
6.
Training enables employees to develop and rise within the organization and increase their earning capacity.
7.
It moulds the employee‟s attitudes and
helps them to achieve better cooperation with the organization.
8.
Trained employees make better economic use of materials and equipment resulting in reduction of wastage
and spoilage.
9.
Training instructs the workers toward better job adjustment and reduces th
e rate of labour turnover and
absenteeism.
Benefit to organization
A program of training becomes essential for the purpose of meeting the specific problems of a particular
organization arising out of the introduction of new lines of production, changes in
design, the demands of
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competition etc. The major benefits of training to an organization are:
-
•
Higher productivity
:
-
Training can help employees to increase their lever of performance on their
present assignment. Training increases the skill of an emplo
yee in the performance of a particular job.
Increased performance and productivity, because of training, are most evident on the part of new
employees who not fully aware of the most efficient and effective ways of performing their job. An
increase in skil
l usually helps to increase both quantity and quality of output.
•
Better organizational climate
:
-
An endless chain of positive reactions result form well planned training
program Increased morale, less supervisory pressures improved product quality, increa
sed financial
incentives, and internal promotions etc., results in better organizational climate.
•
Less Supervision
:
-
Training does no eliminate the need for supervision, but it reduces the need for
constant supervision.
•
Prevents Manpower Obsolescence
:
-
Training prevents Manpower obsolescence as it fosters the
initiative and creativity of employees. An employee is able to adapt himself to technological changes.
•
Economical Operations
:
-
Trained personnel will make economical use of materials and equipment.
This
will reduce wastage in materials and damage to machinery and equipment.
•
Prevents industrial Accidents
:
-
Proper training can help to prevent industrial accidents.
•
Improves Quality
:
-
Trained employees are less likely to make operational mistakes ther
eby increasing
the quality of the company‟s products.
•
Greater Loyalty
:
-
A common objective of training program will mound employee‟s attitudes to achieve
support for organizational activities and to obtain better cooperation and greater loyalty. Thus, tra
ining
helps in building an efficient and loyal work force.
•
To fulfill Organizations future Personnel Needs
:
-
When the need arises, organizational vacancies can
be staffed from internal sources. If an organization initiates and maintains an adequate traini
ng program.
•
Standardization of Procedures
:
-
Trained employees will work intelligently and make fewer
mistakes when they possess the required know
-
how and have an understanding of their jobs.
Benefits to Employees
•
Personal Growth
:
-
Employees on a
personal basis gain individually from training. They secure wider
awareness, enlarged skill and enhanced personal growth.
•
Development of new skills
:
-
Training improves the performance of the employees and makes him
more useful and productive. The skill de
veloped through training serves as a valuable personal asset to
the employee. It remains permanently with the employee.
•
Higher Earning Capacity
:
-
By imparting skills, training facilities higher remuneration and other
monetary benefits to the employee. Thu
s, training helps each employee utilize and develop his full
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potential.
•
Helps adjust with changing Technology
:
-
Old employees need refresher training to enable them
keep abreast of the changing methods, techniques and use of sophisticated tools and equipm
ent.
•
Increased Safety
:
-
Proper training can help prevent industrial accidents. Trained workers handle the
machines safely. Thus, they are less prone to industrial accidents. A safe work environment also leads to
a more stable mental attitude on the part o
f the employees.
•
Confidence
:
-
Training creates a feeling of confidence in the minds of employees. It gives safety and
security to them in the organization.
Management Development
Executive or management development is a long
-
term educational process
utilizing a systematic and organized
procedure by which managerial personnel learn conceptual and theoretical knowledge. Development is a related
process. It covers not only these activities, which improve job performance, but also those which bring about
growth of the personality; help individuals in the progress towards maturity and actualization of their potential
capacities so that they become not only good employees but also better human beings. In organizational terms, it is
intended to equip persons
to earn promotion and held greater responsibility. Training a person for a bigger and
higher job is development.
According to
Harold Koontz
and
Cyril O’Donnell
-
“
Developing a manager is a progressive process in the same
sense that educating a person is. Ne
ither development nor education should be through of as something that can
ever be completed, for there are no known limits to the degree one may be developed or educated. Manager
Development concerns the means by which a erosion cultivates those skills
ap
plication will improve the efficiency and effectiveness with which the anticipated results of a particular
organizational segment are achieved”
Need and Importance of Development
In this age of “
Professionalization of Management",
importance of executive d
evelopment cannot be minimized.
Executive talent is the most important asset of an organization. According to
Peter Drucker
-
“
An institution that
cannot produce its own mangers will die. From an overall point of view the ability of an institution to produ
ce
manager is more important than its ability to produce good efficiently and cheaply
”. The need for executive
development is felt because:
1.
There is a shortage of trained managers. The organization has to develop the talented employees and
maintain an inve
ntory of executive skills to meet the future demand.
2.
The performance of a company depends upon the quality of its managers. Executive development,
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therefore, is of paramount importance to have effective and desired managerial talents to meet the
organizati
on‟s demand.
3.
Obsolescence of managerial skills is another factor, which calls for continuous executive development. A
manager must continuously update himself to successfully meet new challenges as they occur.
Objective of Development:
1.
To ensure a steady s
ource of competent people at all levels to meet organizational needs at all times.
2.
The performance of a company depends upon the quality of its mangers. Executive development,
therefore, is of paramount importance to have effective and desired managerial
talents to meet he
organization‟s demand.
3.
Obsolescence of managerial skills is another, which calls for continuous executive development. A manger
must continuously update himself to successfully meet new challenges as they occur.
Types of Training program
s
Induction or orientation Training
:
-
As the name suggests it is the method of introducing a new employee into
the organization with a view to gaining his confidence and developing in him a sense of co
-
operation. It is a training
program used to induct a
new employee into the new social setting of his work. The new employee is introduced to
his job situation and to his co
-
employees. He is also informed about the rules, working conditions, privileges and
activities of the company. The induction training not
only helps personal adjustment of the new employee to his job
and work group but also promotes good morale in the organization.
An induction programme should aim at achieving the following objectives:
-
(a)
To build up the new employee‟s confidence in the org
anization so that he may become an efficient
employee.
(b)
To ensure that the new employee may not form false impressions regarding their place of work.
(c)
To promote a feeling of belonging and loyalty.
(d)
To give information to the new employee about canteen, leave
rules and other facilities etc.
In short, planned induction welcomes a new employee, creates a good attitude, reduces labour turnover and makes
the employee feel at home right from the beginning.
Job training
:
-
The objected of job training is to increase
the knowledge of workers about the job with they are
concerned, so that their efficiency and skill of performance are improved. In job training, workers are enabled to
learn correct methods of handling machines and equipment avoiding accident, minimizing
wastes etc.
Under this technique, an employee is placed in a new job and is told how it may be performed. It is primarily
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concerned with developing in an employee the skills and habits consistent with the existing practiced of an
organization and with orie
nting him to his immediate problems. The employees learn the job by personal
observation and practice as well as occasionally handling it. It is learning by doing, and it is most jobs that are
difficult to stimulate or can be learned quickly by watching an
d doing.
The actual training follows four
-
step process:
-
•
Preparation of the trainee for instruction.
•
Presentation of the instruction in a clear manner.
•
Having the trainee try out the job to show that he has understood the instructions.
•
Encouraging the
question and allowing the trainee to work along and the trainer follow up regularly.
Promotional Training
:
-
Many concerns follow a policy of filling some of the vacancies at higher levels by
promoting existing employees. This policy increases the morale o
f workers. When the existing employees are
promoted to superior positions in the organization, they are required to shoulder new responsibilities. For this,
training has to be given.
Refresher Training
:
-
With the passage of time, employees may forget some
of the methods, which were taught
to them, or they may have become outdated because of technological development and improved techniques of
management and production. Hence, refresher training is arranged for existing employees in order to provide them
an
opportunity to revive and also improve their knowledge. According to
Dale Yoder
-
“
Retraining (refresher
training) programmes are designed to avoid personnel obsolescence ”.
Thus, refresher training is essential because
(a)
Employees require training to bring
them up
-
to
-
date with the
knowledge and
skills and to relearn what they have forgotten.
•
Rapid technological changes make even the most qualified workers obsolete in course of time.
•
Refresher training becomes necessary because many new jobs are
created and
are to be manned by the existing employees.
Apprenticeship Training
:
-
Apprenticeship training system is widely in vogue today in many industries. It is a
god source of providing the required personnel for the industry. Under this method, both knowledge an
d skills in
doing a job or a series of related jobs are involved. The apprenticeship program combines on
-
the job training and
experience with classroom instructions in particular subjects. Apprenticeship training is desirable in industries,
which require a
constant flow of new employees expected to become all
-
round craftsmen.
Internship Training
:
-
Internship training is usually meant for such vocations where advance theoretical
knowledge is to be backed up by practical experience on the job. Under this met
hod, the professional institutes
enter into arrangement with a big business enterprise for providing knowledge to its students. For e.g.:
-
Engineering
students are to industrial enterprise and Medical students are sent to hospitals for practical knowledge.
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Training and Development Methods
Broadly, the training and development can be classified into the following two categories:
-
A)
On
-
the job Method
B)
Off
-
the job Method
A) On
-
the job Method
:
-
The most common method used by industry to train individual is
no
-
the
-
job training.
Virtually every employee, from clerk to General Manager, gets some “on
-
the job training”. Under this method, his
immediate superior who knows exactly what the trainee should learn to do gives the employee training at his
workplace. To
be effective, training instructions should be helpful, friendly and personal. The management should
also keep a close watch and checkup the training from time to time. On
-
the
-
job training may take any one of the
following forms:
-
a.
Coaching:
-
Under coachin
g or understudy method, the employee is trained on the job by his immediate
superior
b.
Job
-
rotation:
-
The purpose of position rotation is to broaden the background of the employee in various
positions. The employee is made to move from job to job at certain
intervals.
c.
Special assignments:
-
are used to provide the employees with firsthand experience in working on the actual
problems
Merits of on
-
the
-
job Training
(a)
It permits the trainee to learn at the actual equipment and environment on the job.
(b)
It is a rela
tively cheaper and less time consuming as no additional personnel or facilities are
required for training.
(c)
As the trainee gets a feeling of actual production conditions, it increases the effectiveness of
training.
Demerits of on
-
the
-
job Training
:
-
(a)
The
instruction in on
-
the
-
job training is often highly disorganized and haphazard.
(b)
Trainees are often subjected to distractions of a noisy shop office.
(c)
There is low productivity.
Vestibule Training
:
-
This method attempts to duplicate on
-
the
-
job situations in
a company classroom. The
trainees are taken through a short course under working conditions that approximate actual shop, sales or office
conditions. This technique enables the trainee to concentrate on learning the new skills rather that on performing an
actual job. Vestibule training is suitable where it is not advisable to put the burden of training on line supervisors
and where a special coaching is required. However, trainees have to face the adjustment problem when they are
placed in the actual work
place.
B.
Class Room or Off
-
the
-
job Method
:
-
Off
-
the job training simply means that trainings not a part of everyday
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job activities. Classroom or off
-
the job instructions are useful when concepts, attitudes, theories and problem
solving abilities are to be
taught. It is associated more with knowledge than skill. Off
-
the job method consists of:
-
i
) Lecture Method
:
-
This is most commonly used to speak to large groups about general topics. The lecturer
posses a considerable depth of knowledge of the subject
at hand. He seeks to communicate his thoughts in such a
manner as to interest the class and cause them to retain what he has said. The trainees generally take notes as an aid
to learning ii)
The Conference Method:
-
In this method, the participating individ
uals „confer‟ to discuss points of
common interest to each other. It is an effective training device for persons of both conference member and
conference leader. As a member, a person can learn from others by comparing his opinions with those of others. As
a conference leader, a person can develop this skill to motivate people through his direction of discussion.
There are three types of conferences
-
(a)
Direct Discussion
-
The trainer guides the discussion in such a way that the facts, principles or concepts are
explained.
(b)
Training Conference
-
The instructor gets the group to pool its knowledge and past experience and brings
different points of view on the problem.
(c)
Seminar Conference
-
The instructor defines the problem, encourages and ensures full participation in the
discussion.
The conference is ideally suited to learning problems and issues and examining them from different angles. It is
considered to be the best
method for reducing dogmatism employed in supervisory and executive development
programmes.
(iii)
Seminar or Team Discussion:
-
Seminar is based on a paper prepared by one or more trainees on a subject
selected in consultation with the person in charge of the se
minar. The trainee read their papers and this is followed
by a critical discussion. The chairman of the seminar summarizes the contents of the papers and the discussions,
which follow their reading.
(iv)
Case Study Method:
-
The case study method which is popul
arized by the Harvard Business School USA, is
one of the common forms of training to the employees. This method was first developed in the 1880‟s by
Christopher Lang dell at the Harvard Law School to help students to learn for themselves by independent thi
nking.
A collateral objective is to help them develop skills in using their knowledge.
Under the case study method, the trainees may be given a problem to discuss which is more or less related to the
principles already taught. This method gives the trainee
an opportunity to apply his knowledge to the solution of
realistic problems. The case study places heavy demands upon the trainees and requires that they should have a
good deal of maturity and background in the subject
-
matter concerned.
Case studies are
extensively used in teaching law, personnel management, human relations, management etc. The
trainees learn that there is no single answer to a particular problem. The answer to each trainee may differ. Case
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discussions will help them to appreciate each o
ther‟s thinking. That is why; case studies are frequently used in
supervisory and executive training.
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In the case study method, the trainee is expected to
-
(a)
Master the facts and content of the case.
(b)
Define the objectives and issues in the case.
(c)
Identify the problems in the case.
(d)
Develop alternative courses of action.
(e)
Screen the alternatives using the
objectives and issues as the criteria.
Suggest the controls needed to make the action
effective
(v)
Role Playing:
-
This method was developed by More
no a Venetian psychiatrist. Role
-
playing technique is
used for human relations and leadership training. Its purpose is to give trainees an opportunity to learn human
relations skills through practice and to give develop insight into one‟s own behavior and
its effect upon others.
Under this method, a conflict situation is artificially constructed and two or more trainees are assigned different
parts to play. The trainees cut out a given role as they would in a stage play. The role players are provided with a
description of a situation and the role they are to play. After begin allowed sufficient time to play their actions, they
must then act their part spontaneously before the group.
Role
-
playing primarily involves employee
-
employer relationships
-
hiring, fi
ring, and discussing a grievance
procedure, conducting a post
-
appraisal interview or representation to a customer. Role
playing is especially useful in
providing new insights and in presenting the trainee with opportunities to develop international skills.
(vi)
Management Games:
-
A management games is a classroom exercise in which teams of students compete
against each other to achieve common objectives. The games are designed to be a close representation of real
-
life
conditions.
Steps in Training Programme
Training programme is a costly and time
-
consuming process. The training procedure discussed below is essentially
an adoption of the job instruction
-
training course. The following steps are usually considered as necessary.
1.
Discovering or Identifying Trainin
g needs.
2.
Preparing the instruction or getting ready for the job.
3.
Preparing the trainee.
4.
Presenting the operation.
5.
Try out the trainees‟ performance.
6.
Follow
-
up or Rewards and feedback.
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Discovering or Identifying the training needs:
-
A training program sho
uld be established only when it is felt
that it would assist in the solution of specific problems. Identification of training needs must contain three types of
analysis
-
(i)
Organizational analysis
-
determine the organization‟s goals, its resources and the al
location of
the resources as they relate to the organizational goals.
(ii)
Operations analysis
-
focuses on the task or regardless of the employee doing the job.
(iii)
Man analysis
-
reviews the knowledge, attitudes and skills a person must acquire to contribute
satisfactorily to the attainment of organizational objectives.
Armed with the knowledge of each trainee‟s specific training needs, programs of improvement can be developed
t
hat is tailored to these needs. The training program then follows a general sequence aimed at supplying the trainee
with the opportunity to develop his skills and abilities.
Preparing the Instructor:
-
The instructor is the key figure in the entire program
. He must know both the job to
be taught and how to teach it. The job must be divided into logical parts so that each can be taught at a proper time
without the trainee losing perspective of the whole. This becomes a lesson plan. For each part one should h
ave in
mind the desired technique of instruction, i.e., whether a particular point is best taught by illustration, demonstration
or explanation. Preparing the Trainee:
-
This step consists of:
-
•
In putting the learner at ease.
•
In stating the importance and
ingredients of the job and its relationship to work flow;
•
In explaining why he is being taught
•
In creating interest and encouraging questions, finding out what the learner already knows about his job or
other jobs.
•
In explaining the „why‟ of the whole job
and relating it to some job the worker already knows
•
In placing the learner as close to his normal position as possible and
•
In familiarizing him with the equipment, materials, tools and trade terms.
Presenting the Operations:
-
This is the most important
step in a training program. The trainer should clearly
tell, show, illustrate and question in order to put over the new knowledge and operations. There are various
alternative ways of presenting the operation namely, explanation, demonstration etc. An inst
ructor mostly uses the
method of explanation. In addition one may illustrate various points through the use of pictures, charts, diagrams
and other training aids. Demonstration is an excellent device when the job is essentially physical in nature. The
foll
owing sequence of training may be followed:
1.
Explain in the sequence of the entire job.
2.
Do the job step by step according to the procedure.
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3.
Explain each step that he is performing.
4.
Have the trainee explain the entire job.
Instructions should be given
clearly, completely and patiently; there should be an emphasis on key points and one
point should be explained at a time. The trainee should also be encouraged to ask questions in order to indicate that
he really knows and understands the job.
Try out the
Trainees’ Performance:
-
Under this, the trainee is asked to go through the job several times slowly,
explaining him each step. Mistakes are corrected, and if necessary, some complicated steps are done for the trainee
the first time. Then the trainee is as
ked to do the job, gradually building up skill and speed. As soon as the trainee
demonstrates that he can do the job in the right way, he is put on his own. The trainee, through repetitive practice,
will acquire more skill.
Follow
-
up:
-
The final step in m
ost training procedures is that of follow up. This step is undertaken with a view to
testing the effectiveness of training efforts. The follow up system should provide feedback on training effectiveness
and on total value of training system. It is worth re
membering that if the learner hasn‟t learnt, the teacher hasn‟t
taught.
Selection of A Training Method
The selection of an appropriate method depends upon the following six factors.
1.
Nature of Problem area
: The choice of a training method depends upon the t
ask to be done or the manner in
which people interact with each other i.e., the problem may be either an operational problem or a human
relations problem.
2.
Level of trainees in the organization’s hierarchy
: The choice of a training method also depends upon
the
level of the participants.
3.
Method’s ability to hold and arouse the interest of trainees during the training period:
A
trainer has to consider alternative methods of presenting Training material to participants also from the point of
view of their
ability to stimulate interest and facilitate retention of the matter.
4.
Availability of competent Trainers
: A training method is as effective as the ability of the trainer. He is the
most important figure in the entire training programme. Therefore before ve
nturing into a training programme
we have to first find a good trainer.
5.
Availability of finance
: Availability of finance is crucial for any training programme. To make a training
programme effective adequate finance is necessary.
6.
Availability of time
: Trai
ning cannot be done in a hurry. Adequate time is necessary to make the training
programme a success.
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JOS CON T£ NT
INFORMATION
JOB CONTEXT
INFORMATION
Job
description
Worker
specification
WORK DESIGN
Job redesign
Health
&
safety
OWL
HR
PLANNING
HR
need
-
s
HR skills inventories
STAFFING Application forms Tests
Interview questions
PERFORMANCE
APPRAISAL Criteria &
standards
Appraisal
methods
3.5 Potential Problems with Job Analysis
No process can be entirely accurate and fully serves the purpose. Job analysis is no exception to it. The process
involves a variety of methods, tools, plans and a lot of human effort. And where
there people are involved, nothing
can be 100 percent accurate. However, they may be appropriate considering various factors including
organizational requirements, time, effort and financial resources. Since the entire job analysis processes, methods
and t
ools are designed by humans only, they tend to have practical issues associated with them. Human brain
suffers with some limitations, therefore, everything created, designed or developed by humans too have some or
other constraints.
Coming back to the subj
ect, even the process of job analysis have lot of practical problems associated with it.
Though the process can be effective, appropriate, practical, efficient and focused but it can be costly, time
consuming and disruptive for employees at the same time.
It is because there are some typical problems that are
encountered by a job analyst while carrying out the process. Let‟s discuss
OOMPE NS AT ION Compensable
factors Job worth
TRAINING Trei ning needs
Suctesscntena
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them and understand how the process of job analysis can be made more effective by treating them carefully.
■
Lack of Management Support:
The biggest problem arises when a job analyst does not get proper
support from the management. The top management needs to communicate it to the middle level managers
and emp
loyees to enhance the output or productivity of the process. In case of improper communication,
employees may take it in a wrong sense and start looking out for other available options. They may have a
notion that this is being carried out to fire them or
take any action against them. In order to avoid such
circumstances, top management must effectively communicate the right message to their incumbents.
■
Lack of Co
-
operation from Employees:
If we talk about collecting authentic and accurate job
-
data, it
is
almost impossible to get real and genuine data without the support of employees. If they are not ready to
co
-
operate, it is a sheer wastage of time, money and human effort to conduct job analysis process. The
need is to take the workers in confidence and c
ommunicating that it is being done to solve their problems
only.
■
Inability to Identify the Need of Job Analysis:
If the objectives and needs of job analysis process are
not properly identified, the whole exercise of investigation and carrying out research
is futile. Managers
must decide in advance why this process is being carried out, what its objectives are and what is to be done
with the collected and recorded data.
■
Biasness of Job Analyst:
A balanced and unbiased approach is a necessity while carrying o
ut the process
of job analysis. To get real and genuine data, a job analyst must be impartial in his or her approach. If it
can‟t be avoided, it is better to outsource the process or hire a professional job analyst.
■ Using Single Data Source:
A job analys
t needs to consider more than one sources of data in order to
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collect true information. Collecting data from a single source may result in inaccuracy and it therefore,
defeats the whole purpose of conducting the job analysis process.
However, this is not t
he end. There may be many other problems involved in a job analysis process such as
insufficient time and resources, distortion from incumbent, lack of proper communication, improper questionnaires
and other forms, absence of verification and review of job
analysis process and lack of reward or recognition for
providing genuine and quality information.
3.6 Meaning and Definition of Human Resources Planning
What is Human Resource Planning?
The acquisition of people to perform each job within the organization is the role of the staffing function. This
function is interrelated closely with planning, because
human resource needs
must be forecasted sufficiently in
advance to enable qualified ind
ividuals to be available for job openings as they occur.
Human resource planning,
therefore, is the process of systematically reviewing human resource requirements to ensure that the required
number of employees, with the required skills, are available whe
n they are needed (Mondy & Noe, 1990). It is a
means of deciding the number and type of personnel that organization needs now and in the future. Then, translates
the organization's objectives into the number of employees required to meet those objectives.
Without clear
-
cut
planning estimation of human resource need is reduced to mere guesswork.
To ensure that people are available to provide the continued smooth development, organizations engage in
human
resource planning.
The purpose of developing human res
ource planning is to
asses where the organization is,
where it is going, and what implications these assessments have on future supplies of and demands of human
resource.
Attempts must then be made to match supplies and demands, making them compatible with
the
achievement of the organization's future needs.
3.7 Importance of Human Resources Planning
Organizations are composed of
financial, material and human resources.
Of these
human resource
represents one
of the organization's most valuable assets. Howeve
r, because the organization does not own people, as it does
physical and capital assets, this resource is seldom given proper attention.
Its supply of personnel must be sufficient to ensure the healthy operation of the organization. Toward this objective
o
f continuing healthy operations, the organization needs to be undertaken human resource planning.
Human
resource planning,
according to Chatterjee (1995), therefore:
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-
assumes a crucial role in the future success or failure of an organization.
-
enables a
manager to predict his/her manpower requirements, to determine the deployment of personnel
and to control wage and salary costs.
-
provides management information about the existing strength and weaknesses of the people in the
organization.
-
assesses the kind
s of skills required to be developed as well as recruited.
-
estimates human resource requirements over a specified time frame in relation to the organization's goals.
Provides an indication of the lead
-
time that is available to evolve new strategies in sele
cting and training
the required additional manpower or reducing the strength of the workforce.
In general, the following are the major reasons for undertaking human resource planning.
1.
Future Human Resource Requirements
Planning is vital for determining the
human resource needs for the future.
2.
Cope With Change
Human resource planning enable the management to cope with changes in technology, competitive forces,
markets, government regulations, etc. Such changes often generate changes in job content, skill dem
ands,
number and types of personnel.
3.
Decreasing or Increasing Growth of Organizations
The manner, the pace and the direction in which an organization is growing dictates the need for a human
resource plan. Years of comfortable growth may give rise to slowe
r growth prospects or even reduced
growth prospect (Chatterjee, 1995).
4.
Foundation for Human Resource Functions
The plan provides essential information for designing and implementing human resource functions such as
recruitment, selection, employee mobility
(transfers, promotions, lay
-
off, etc.) and training and
development.
3.8 Steps in Human Resources Planning
The process of human resource planning has assumed great significance. HRP consists of the following stages.
1.
Analyzing organization plans and decidi
ng objectives.
2.
Analyzing factors for manpower requirements.
(a)
Demand Forecasting
-
Forecasting the overall human resource requirements in
accordance with the organizational plans.
(b)
Supply Forecasting
-
Obtaining the data and information about the present
inventory of
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human resources and forecast the future changes in present human resources and
forecast the future changes in present human resource inventory.
3.
Developing Employment Plans
4.
Developing Human Resource plans
1.
Analyzing Organizational Plans and deci
ding objectives
Before undertaking the human resource planning of an organization the short
-
term and long
-
term objective
objectives should be analyzed. The process of human resource planning should start with analyzing the
organizational plan. Analysis of
organizational plans and programmes help in forecasting the demand for human
resources as it provides the quantum of work activity. According to Sikula, “the ultimate mission or purpose is to
relate future human resources to future enterprise needs so as t
o maximize the future returns on investment in
human resources”.
2.
Analyzing Factors for Manpower Requirements
The existing job design and analysis may thoroughly be reviewed keeping in view the future capabilities,
knowledge and skills pf present employees.
The job generally should be designed and analyzed reflecting the future
human resources and based on future organizational plans. The factor for manpower requirements can be analyzed
by two ways:
-
(a)
Demand Forecasting and
(b)
Supply forecasting
Demand
Forecast
ing
Demand forecasting is the process of estimating the future requirements of manpower, by function and by level of
skills. It has been observed that demand assessment for operative personnel is not a problem but projections
regarding supervisory and mana
gerial levels are difficult. Two kinds of forecasting techniques are commonly used
to determine the organization‟s projected demand for human resources. These are
(i)
Judgmental forecasts and
(ii)
Statistical projections.
Judgmental forecasts
:
-
Judgmental
forecasts are also known as the conventional method. The forecasts are based
on the judgment of those managers and executives who have intensive and extensive knowledge of human resource
requirement. Judgmental forecasts could be of two types:
-
(i)
Managerial
estimate:
-
Under this method, the managers or supervisors who are well
-
acquainted with the workload, efficiency and ability of employees, think about their future
workload, future capabilities of employees and decide on the number and type of human
resou
rces to be required. An estimate of staffing needs is done by the lower level mangers who
make estimates and pass them up for further revision.
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(ii)
Delphi Method
:
-
A survey approach can be adopted with the Delphi technique. The Delphi
process requires a large
number of experts who take turns to present their forecast statement
and underlying assumptions to the others, who make revisions in their forecasts. Face
-
to
-
face
contact of the experts is avoided.
Statistical Projection
:
-
some forecasting techniques are
based on statistical methods. Some of them are given
below:
-
(i)
Ratio
-
trend Analysis:
-
The ratio
-
tend analysis is carried out by studying past rations and forecasting
rations for the future.
Econometric Model:
-
Under the econometric model the previous d
ata is
analyzed and the relationship between different variables in a mathematical formula is
developed. The different variables affecting the human resource requirements are identified.
The mathematical formula so developed is then applied to the forecast
s of movements in the
identified variables to produce human resource requirements.
Supply Forecasting
Supply forecasting is concerned with human resources requirements from within and outside the organization. The
first step of forecasting the future suppl
y of human resource is obtain the data and information about the present
human resource inventory. The supply forecasting includes human resource audits; employee wastage; changes due
to internal promotions: and changes due to working conditions.
The firs
step of forecasting the future supply of human resource is to obtain the data and information about the
present human resource inventory. Some of the steps are discussed below.
(i)
Human Resource Audits
:
-
These are analysis of each employee‟s skills and a
bilities. This
analysis facilitates the human resource planners an understanding of the skills and capabilities
available in the organization and identify manpower supply problems arising in the near future.
These inventories should be updated periodically
otherwise it can lead to present employees
being ignored for job openings within the organization.
(ii)
Employee Wastage
:
-
The second step of supply forecasting is estimation of future losses of
human resources of each department and of the entire
organization. This is analyzed to identify
the resource for the employees who leave the organization and forecast future losses likely to
occur due to various reasons. Employees may leave organization for reasons like retirements,
layoffs, dismissals, disa
blement, ill health, death etc. Reasons for high labour turnover and
absenteeism should be analyzed and remedial measures taken. Management has to calculate
the rate of labour turnover, conduct exit interviews etc. This helps to forecast the rate of
potent
ial loss, reasons for loss and reduce loss.
(iii)
Internal promotions
:
-
Under the analysis is undertaken regarding the vacancies likely due to
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retirements and transfers and the employees of particular groups and categories who are likely
to be promoted. The mul
tiple effect of promotions and transfers on the total moves should be
analyzed and taken into consideration in forecasting change in human resource supply of
various departments. For eg:
-
if the personnel officer is promoted as personnel manager, 2
more e
mployees will also get promotion. The senior clerk will become senior clerk. Thus there
are 3 moves for one promotion.
3.
Developing Employee Plans
After determining the number of personnel for each job in the organization, the human resource department has t
o
determine the nature of job regarding job description and job specification.
(a)
Job Description
:
-
A job description will generally describe the work performed, the Responsibilities
involved, the skill or training required, conditions under which the job is
done, relationships with other jobs and
personal requirements on the job. According to The British institute of Management
-
“ a job description is not
intended to catalogue all duties involved with the result the result that an employee would feel justifi
ed in declining
to perform any work not included in the description. It should be regarded as an out
-
line of the minimum
requirements of the job, thus preserving flexibility of operations”.
(b)
Job Specification
:
-
The job specification is an output of job des
cription, states the minimum acceptable
qualifications that the newcomer must possess to perform the job satisfactorily and successfully. Job specifications
serve as an important tool in the selection process and evaluation. The human resource department i
n consultation
with different line manger develops them. The various elements of job specification are:
-
(i)
Minimum formal education necessary to perform the job.
(ii)
Minimum experience required performing the job.
(iii)
Manual/ Mental skill required performing the job
.
(iv)
Personality factors such as personal appearance, emotional stability, maturity, initiative, drive and
sociability.
(v)
For high
-
level jobs, the ability to assume responsibility is an essential pre
-
requisite.
4.
Developing a Human Resource Plan
Net human resourc
e requirements in terms of number and components are to be determined in relation to the overall
human resource requirement. After estimating the supply and demand of human resources, the management starts
adjustment when the internal supply of employees i
s more than the demand, human resource purpled exists and the
external recruitment is stopped. Besides the existing employees are encouraged are encouraged to take voluntary
retirement. It gradually reduces the surplus. If human resource deficit exists the
n the planners have to rely on the
external sources. They then proceed for scanning of the employment market for recruitment purposes. If future
supply of human resources from all the manpower planner has to suggest the management to alter or modify the
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or
ganization plan. In case of shortage of certain categories of employees, the organization has to take care not only
or recruitment but also retention of existing employees.
3
.9 Factors Affecting Human Resources Planning
1.
Employment:
-
HRP is affected by the
employment situation in the country i.e. in countries where there is greater unemployment;
there may be more pressure on the company, from government to appoint more people. Similarly some company
may force shortage of skilled labour and they may have to a
ppoint people from other countries.
2.
Technical changes in the society :
-
Technology changes at a very fast speed and new people having the required knowledge are required for the
company. In some cases, company may retain existing employees and teach them t
he new technology and in some
cases, the company have to remove existing people and appoint new.
3.
Organizational changes :
-
Changes take place within the organization from time to time i.e. the company diversify into new
products or close down business in s
ome areas etc. in such cases the HRP process i.e. appointing or removing
people will change according to situation.
4.
Demographic changes :
-
Demographic changes refer to things referring to age, population, composition of work force etc. A number of
people r
etire every year. A new batch of graduates with specialization turns out every year. This can change the
appointment or the removal in the company.
5.
Shortage of skill due to labour turnover :
-
Industries having high labour turnover rate, the HRP will change
constantly i.e. many new appointments will take
place. This also affects the way HRP is implemented.
6.
Multicultural workforce :
-
Workers from different countries travel to other countries in search of job. When a company plans it‟s HRP it needs
to take int
o account this factor also.
7.
Pressure groups :
-
Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as
they are very capable for creating problems for the company, when issues concerni
ng these groups arise,
appointment or retrenchment becomes difficult.
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Chapter Six
Performance Appraisal
Introduction
After an employee has been selected for a job, has been trained to do it and has worked on it for a period of time,
his performance should
be evaluated. Performance appraisal or merit rating is the mechanism to assess the
contribution of all human resources working at each level of the organization during a specific period of time.
Performance appraisal enables the employees to know as to how
they are performing in comparison with the set
standards. They can then try to improve their performance.
The immediate supervisor or specially trained person meant for the job does performance appraisal. Performance
appraisal has direct linkage with such
personnel systems as selection, training, mobility, etc. Appraisal and
selection has a lot to do with the criteria or job expectation. Well
-
developed job descriptions can be extremely
useful is not only selecting people but also evaluating them on the sam
e criteria.
Definitions of Performance Appraisal
According to
Wendell French
, Performance appraisal is, “
the formal, systematic assessment of how well
employees are performing their jobs in relation to established standards, and the communication of that
assessment
to employees ”
According to
Flippo
-
“
Performance appraisal is the systematic, periodic and an impartial rating of an employee’s
excellence in matters pertaining to his present job and his potential for a better job”
According to
Dale Yoder
,
“
Pe
rformance appraisal includes all formal procedures used to evaluate personalities and contributions and
potentials of group members in a working organization. It is a continuous process to secure information necessary
for making correct and objective decis
ions on employees”
.
Objectives of Performance Appraisal
Performance appraisal plans are designed to meet the needs of the organization and the individual. It is increasingly
viewed as central to good human resource management. Performance appraisal could b
e taken either for evaluating
the performance of employees or for developing them.
Appraisal of employees‟ serves several useful purposes
1.
Feedback:
-
It serves as a feedback to the employee. It tells him what he can do to improve his present
performance an
d go up the “ organizational ladder”. The appraisal thus facilitates self
development. It also
makes the employee aware of his key performance areas.
2.
Compensation Decisions:
-
It provides inputs to system of rewards. The approach to compensation is at
the
heart of the idea that raises should be given for merit rather than for seniority.
3.
Data Base:
-
It provides a valid database for personal decisions concerning placements, pay, promotion,
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transfer etc. Appraisal also makes the employee aware of his key perf
ormance areas. Permanent
performance appraisal records of employee help management to do planning without relying upon
personal knowledge of supervisors who may be shifted.
4.
Personal Development:
-
Performance appraisal can help reveal the causes of good an
d poor employee
performance. Though discussions with individual employees, a line manager can find out why they
perform as they do and what steps can be initiated to improve their performance.
5.
Training and Development Programme:
-
By identifying the streng
ths and weaknesses of an
employee it serves as a guide for formulating a suitable training and development programme to improve
his quality of performance in his present work. It can also inform employees about their progress and tell
them what skills they
need to develop to become eligible for pay rises and/or promotions.
6.
Promotion Decisions:
-
It can serve as a useful basis for job change or promotion. By establishing
whether the worker can contribute still more in a different or a higher job it helps in
his suitable promotion
and placement. If relevant work aspects are measured properly, it helps in minimizing feelings of
frustration of those who are not promoted.
7.
Personal Development:
-
Performance appraisal can help reveal the causes of good and poor em
ployee
performance. It thus helps the employee to overcome his weaknesses and improve his strength so as to
enable him to achieve the desired performance.
8.
Improves Supervision:
-
The existence of a regular appraisal system tends to make the supervisors mor
e
observant of their subordinates because they know that they will be expected periodically to fill out rating
forms and would be called upon to justify their estimates. This improves supervision.
Uses of Performance Appraisal
Performance appraisal is a si
gnificant element of the information and control system in organization.
Performance appraisal is used in order to:
-
1.
Performance appraisal provides valuable information for personnel decisions such as pay increases,
promotions, demotions, transfers and te
rminations. The information provided forms the basis for suitable
personnel policies.
2.
It provides feedback information about the level of achievement and behaviour of subordinate, rectifying
performance deficiencies and to set new standards of work, if nec
essary. It also identifies individuals with
high potential who can be groomed up for higher positions.
3.
It serve as a means of telling a subordinate how he is doing and suggesting necessary changes in his
knowledge behaviour and attitudes. It thus provides
information, which helps to counsel the subordinate.
It also serves to stimulate and guide employee‟s development.
4.
It is useful in analyzing training and development needs. These needs can be assessed because
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performance appraisal reveals people who requir
e further training to remove their weaknesses. By
identifying the weaknesses of an employee, it serves as a guide for formulating a suitable training and
development programme to improve his quality of performance in his present work.
5.
Performance appraisal
serves as means for evaluating the effectiveness of devices used for the selection
and classification of employees. It therefore helps to judge the effectiveness of recruitment, selection,
placement and orientation systems of the organization.
6.
Performance
appraisal facilitates human resource planning and career planning, permanent performance
appraisal records of employees help management to do human resource planning without relying upon
personal knowledge of supervisors.
Who will appraise?
The appraiser
may be any person who has thorough knowledge about the job content, contents to be appraised;
standards of contents, and who observes the employee while performing a job. It is possible for the appraisal to be
done by one or a combination of the following:
-
1.
The immediate manager or supervisors.
2.
The employee‟s peers.
3.
The employee himself
-
i.e., self appraisal
4.
The employee‟s subordinates. Appraisal may also be done by:
-
5.
Other managers familiar with the employees‟ work
6.
A higher
-
level manager
7.
Personnel
Department specialist.
The immediate manager (supervisors)
In most cases, the appraisal is done by the employee‟s immediate manager (supervisor). This is because supervisors
are responsible for managing their subordinates and they have the opportunity to o
bserve, direct and control the
subordinate continuously. Moreover, they are accountable for the successful performance of their subordinates.
Further, being generally responsible for feedback of appraisal to the employees and for recommendation of
approval
of personnel actions (which may depend upon the appraisal) it is usually desirable to have him as a party
to the performance appraisal.
On the negative side, there is always the risk of some innocent or purposeful bias entering into the appraisal done
by
the supervisors. Supervisors have been known to manipulate evaluations to justify their decisions on pay
increases and promotions.
The employee’s peers
Appraisal by employee‟s peers is done on the belief that a group of employees can more reliably identify
its
outstanding and poorest performance than managers or supervisors who are not part of the group. Peer appraisal
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may be reliable if the work group is stable over a reasonable long period of time and performs tasks that require
interaction.
Self
-
Appraisa
l
If individuals understand the objectives they are expected to achieve and the standards by which they are to be
evaluated, they are to a great extent in the best position to appraise their own performance.
The employee’s subordinates
The concept of havin
g superiors rated by subordinates is being used in most organizations today. Appraisals by
subordinates find their chief usefulness in the selection process for promotions. Subordinate‟s ratings in such cases
can be quite useful in identifying competent su
periors. However, the fear of reprisal often compels a subordinate to
be dishonest in his ratings.
Other manager’s appraisal
The general practice is that immediate superiors appraise the performance of their subordinate. However, other
supervisors, who hav
e close contact with employee‟s work may also appraise with a view to provide additional
information.
A higher
-
level manager
There is always the risk of purposeful bias entering into the appraisal done by the immediate manager. They might
manipulate evalua
tions to justify their decisions on pay increases or promotions. Getting these appraisals reviewed
by a higher
-
level manager reduces this risk.
Personnel department specialist
The personnel department specialists serve as advisers to the managers who are
d
oing the appraisal. They help the manager to do the appraisal in a scientific manner.
When to apprise?
Although in day
-
to
-
day work, the superior continuously appraises his subordinates, the daily appraisal lacks
summation and objectivity. To overcome these
deficiencies most managements turn to periodic appraisals which
are conducted on a regular basis, say for example, every six months or annually. Some important points to be kept
in mind when systematic appraisals are conducted on a regular basis are:
-
1.
The frequency of appraisals must fit the purpose for which appraisals are being made.
2.
Special appraisals must be done at the end of an employee‟s probationary period or at the time of his
promotion.
3.
For new employees, more frequent appraisal may be require
d.
4.
In the case of an unsatisfactory rating, the next ration is generally done earlier than usual to assess whether
the employee has improved.
What is to be appraised?
Every organization has to decide upon the content to be appraised. Generally, the content
to be appraised is
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determined on the basis of job analysis. The basic purpose of performance appraisal is to find out how well the
employee is doing the job and establish a plan for improvement. The content to be appraised may be in the form of
contributi
on to organizational objectives like production, savings in terms of cost, return on capital etc. The content
to be appraised may vary with the purpose of appraisal and type and level of employees.
Process of Performance Appraisal
Performance appraisal is
planned, developed and implemented through a series of steps
Performance measures may be objective or subjective.
(a)
Objective performance measures
-
objective performance measures are in
dications of job
performance that can be verified by others and are usually quantitative. Objective criteria include
-
•
Quality of production.
•
Degree of training needed.
•
Accidents in a given period
•
Absenteeism
•
Length of service etc.
(b)
Subjective performance measures
-
Subjective performance measures are ratings that are based on
the personal standards of opinions of those doing the evaluation and are not verifiable be others.
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Subjective criteria include
-
•
Ratings by supervisors.
•
Knowled
ge about overall goals.
•
Contribution to socio
-
cultural values of the environment.
It should be noted here that objective criteria could be laid down while evaluating lower level jobs, which are
specific and defined clearly. This is not the case with middle
level and higher
-
level positions that are complex and
vague.
Essentials of a Good Appraisal System
A sound appraisal system should comply with the following
-
1.
Reliability and validity:
-
The system should be both valid and reliable. The validity of ratings
is the
degree to which they are truly indicative of the intrinsic merit of employees. The reliability of ratings is the
consistency with which the ratings are made, either by different raters, or by one rater at different times.
Both validity and reliabil
ity result form objective database. Appraisal system should provide consistent,
reliable and valid information and date, which can be used to defend the organization
-
even in legal
challenges.
2.
Job relatedness:
-
The evaluators should focus attention on jo
b
-
related behaviour and performance of
employees. In order to focus attention on behaviour under the employee‟s control, raters must become
familiar with the observed behaviour. It is also necessary to prepare a checklist so as to obtain and review
job per
formance related information. Ratings should be tied up with actual performance of units under the
rater‟s control. The information generated through evaluators should be tailored to the needs of the
organization, performance requirements and norms of
beha
viour. Multiple criteria should be used for appraisal and appraisal should be done periodically rather than
once a year.
3.
Standardization:
-
Well
-
defined performance factors and criteria should be developed. Appraisal forms,
procedure, administration of tec
hniques, ratings etc., should be standardized as appraisal decisions affect all
employees of the group. It will help to ensure uniformity and comparison of ratings. The appraisal techniques
should measure what they are supposed to measure. They should also
be easy to administer and economical to
use.
4.
Practical viability:
-
The technique should be practically viable to administer, possible to implement and
economical to undertake continuously. It must have the support of all line people who administer it. If
the line
people think it is too theoretical, too ambitious, too unrealistic, or that ivory
-
tower staff consultants who have
no comprehension of the demands on time of the line operators have foisted it on them, they will resent it.
5.
Training to Appraisers:
-
The evaluators or appraiser should be provided adequate training in evaluating the
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performance of the employees without any bias. Evaluators should also be given training in philosophy and
techniques of appraisal. They should be provided with knowledge
and skills in documenting appraisals,
conducting post appraisal interviews, rating errors etc. Familiarity with rating errors can improve rater‟s
performance and this may inject the nee ded confidence in appraisers to look into performance ratings more
obj
ectively.
6.
Open communication:
-
The system should be open and participative. Not only should it provide feedback to
the employees on their performance, it should also involve them in the goal setting process. This helps in
planning performance better. The
employees should actively participate in managing performance and in the
ongoing process of evaluation. The superior should play the role of coach and counselor. The overall purpose
of appraisals should be developmental rather than judgmental.
7.
Employee acc
ess to results:
-
Employees should receive adequate feedback on their performance. If
performance appraisals were meant for improving employee performance, then withholding appraisal result
would not serve any purpose. If the result of appraisal is negativ
e and goes against the employee, it should be
immediately communicated to him so that he may improve his performance or he may go for appeal before the
appropriate authority in case he is not satisfied. Such provisions should be made. This will enable the
management to gain the confidence of the employees.
8.
Clear Objectives:
-
The appraisal system should be objective oriented. It should fulfill the desired objectives
like determining the potential for higher jobs or for sanction on annual increment in the
sa
lary or for granting promotion or for transfer or to know the requirements for training. The objectives
should be relevant, timely and open. The appraisal system should be fair so that it is beneficial to both the
individual employee and the organization.
The system should be adequately and appropriately linked with
other subsystems of human resource management.
9.
Post Appraisal Interview:
-
After appraisal, an interview with the employee should be arranged. It is
necessary to supply feedback, to know the
difficulties under which the employees work and to identify their
training needs. The appraiser should adopt a problem solving approach in the interview and should provide
counseling for improving performance.
10.
Periodic Review:
-
The system should be period
ically evaluated to be sure that it is continuing to meet its
goals. Not only there is the danger that subjective criteria may become more salient than the objective
standards originally established, there is the further danger that the system may become r
igid in a tangle of
rules and procedures, many of which are no longer useful.
Methods or Techniques of Performance Appraisal
A number of different performance appraisal methods or techniques are available for evaluating the performance of
the employees. Th
ese methods try to explain how management can establish standards of performance and devise
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ways and means to measure and evaluate the performance of employee. There is no fool proof method of
evaluating the performance of employees has been devised yet. E
very method suffers from certain drawbacks in
spite of some merits. These methods can broadly be divided into traditional and modern methods
Traditional Method
These methods are the old methods of performance appraisal based on personal qualities like know
ledge, capacity,
judgment, initiative, attitude, loyalty, leadership, judgment etc. The following are the traditional methods of
performance appraisal
1.
Unstructured method of appraisal:
-
Under this method, the appraiser has to describe his impressions
abou
t the employee under appraisal in and unstructured manner. This is a simple method of performance
appraisal. The rater has to list his comments specifically on qualities, abilities, attitude, aptitude and other
personal traits of the employees. This makes
the method highly subjective in nature.
2.
Straight ranking method:
-
in these techniques, the evaluator assigns relative ranks to all the employees
in the same work unit doing the same job. Employees are ranked from the best to the poorest on the basis
of ov
erall performance. This method is also highly subjective and lacks fairness in assessing the real worth
of an employee.
While using this method, the evaluator is asked to rate employees from highest to lowest on some overall criterion.
Though it is relativ
ely easier to rank the best and the worst employees, it is very difficult to rank the average
employees. Generally evaluators pick the top and bottom employees first and then select the next highest and next
lowest and move towards the average (middle) emp
loyees. The limitations of this method are:
-
(1)
It is highly subjective.
(2)
Comparison of the various components of a person‟s performance is not done. The “whole man” is
compared with another “whole man” in this method. In practice, it is very difficult to
compare
individuals possessing varied behavioural traits.
(3)
This method speaks only of the position where an employee stands in his group. It does not tell
anything about how much better or how much worse an employee is when compared to another
employee.
(4)
The
magnitude of difference in ability between ranks is not equal at different positions. For
example, the difference in ability between the first and second individual may be much great in
absolute terms than the difference between the second and third. In t
erms of ranks, however, the
differences between these individuals are the same.
(5)
There is no systematic producer for ranking individuals in the organization. The Ranking System
does not eliminate the possibility of snap judgments.
(6)
Its use is difficult in la
rge groups when the rater cannot compare several people simultaneously.
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As an answer to this problem the paired comparison method of ranking has been evolved.
3.
Paired Comparison Method:
-
Ranking becomes more reliable and easier under the paired comparison
method. This method is an attempt to improve upon the simple ranking method. Under this method
employees of a group are compared with one another at one time. If there is a group of five employees A,
B, C, D and E then A‟s performance is compared with that
of B‟s and decision is taken as to whose
performance is better. Similar ly A‟s performance is compared with C, D and E and decisions regarding
comparatively better performance. The number of comparisons to be made can be decided on the basis of
the follow
ing formula:
-
N (N
-
1)
N
Where N is the number of persons to be compared.
The paired comparison method is more reliable but the method is not suitable when large number of employees is
to be evaluated.
4.
Man
-
to
-
Man Comparison Method:
-
Under this method cert
ain factors are selected for analysis. The
factors include leadership qualities, initiative etc. The appraiser develops scale for each factor. The
standards are very concrete because these are neither numbers nor alphabets nor descriptive adjectives but
ar
e persons of varying ability whom the rater has selected for each trait. In rating other persons the rater
simply likes over this scale and compares them with the persons on the scale. This method is also known as
factor comparison method. It was used duri
ng World War I by the American army. The defect of this
method is that the developing a scale is quite tough and complicated task.
5.
Grading Method:
-
Under this technique of performance evaluation certain categories of worth are
determined in advance and th
ey are carefully defined.
Grade „A‟ for outstanding
Grade „B‟ for very good
Grade „C‟ for average
Grade „D‟ for poor etc.
These grades are based on certain selected features of employees such as knowledge, judgment, analytical ability,
leadership
qualities, self
-
expression etc. The actual performance of employees is compared with the above grades
and employees are allotted grades that speak for their performance.
6.
Check List:
-
A checklist represents, in its simplest form, a set of objective or desc
riptive statements
about the employee and his behaviour. The rate checks to indicate if the behaviour of an employee is
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positive or negative to each statement. The performance of an employee is rated on the basis of number of
positive checks. The following
are some of the sample questions in the
checklist.
(1)
Is the employee regular on the job
yes/no
(2)
Is the employee respected by his subordinates
yes/no
(3)
Is the employee always willing to help his peers
yes/no
(4)
Does the employee follow instructions properly
yes/no
(5)
Does the employee keep the equipment in order
yes/no
The objection to this method are:
-
1.
It is difficult to construct a good checklist.
2.
A separate checklist is needed for each job because statements used in one checklist to evaluate one
category of
workers cannot be used in another checklist to evaluate other category of workers.
7.
Weighted Checklist:
-
The checklist provides to the evaluator containing statements relating to work
related behaviour of the employees. Every statement is given equal impor
tance. However, under weighted
checklist the items having significant importance for organizational effectiveness are given weightage.
Thus, in weighted checklist, weights are assigned to different statements to indicate their relative
importance.
This method has
some demerits. It suffers from evaluators bias. A separate checklist is required for each job, which
increases the cost. It is also difficult to provide due weightage to the particular characteristic of the employee.
5.10.2
Modern Methods
Modern methods are an i
mprovement over the traditional methods. Modern methods are an attempt to remove
defects from old methods. The modern methods of judging the performance of employees are developed. The
modern methods are discussed below:
-
1.
Result Oriented Appraisal or M
BO Technique:
-
The result
-
oriented appraisals are based on the
Weighted
checklist
Traits
Weights
1. Attendance
0.5
2. Knowledge of the job
1.0
3. Quantity of work
1.0
4. Quality of work
1.5
5. Dependability
1.5
6. Interpersonal relations
2.0
7. Organizational loyalty
1.5
8. Leadership potential
1.5
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concrete performance targets, which are usually established by superior and subordinates jointly.
Objectives (MBO) have known this procedure as Management.
Much of the initial impetus for MBO
was provided by Peter Drucker (1954) and by Douglas McGregor (1960).
Drucker first described MBO in 1954 in the Practice of Management. Drucker pointed to the importance of
managers having clear objectives that support the purposes of those in higher posit
ions in the organization.
McGregor argue that by establishing performance goals for employees after reaching agreement with superiors, the
problems of appraisal of performance are minimized. MBO in essence involves the setting out clearly defined goals
of
an employee in agreement with his superior.
Refinements brought out by George Odione, Valentine, Humble and others have enriched the concept and made it
more acceptable all over the globe as an appraisal technique.
The definition of MBO, as expressed by its foremost proponent,
Dr. George S Odiorne
is: “
'
Management by
objectives is a process whereby the superior and subordinate managers of an organization jointly identify its
common goals, define each individual’s
major areas of responsibility in terms of the results expected of him, and
use these measures as guides for operating the unit and assessing the contribution of each of its members. ”
Feature of MBO:
-
The key features of MBO are:
-
1.
Superior and subordinat
e get together and jointly agree upon the list of principal duties and areas
of responsibility of the individual‟s job.
2.
The subordinate sets his own short
-
term performance goals or targets in co
-
operation with his
superior.
3.
They agree upon criteria for mea
suring and evaluating performance.
4.
From time
-
to
-
time (periodically), the superior and subordinate get together to evaluate progress
towards the agreed
-
upon goals. At those meetings, new or modified goals are set for the ensuring
period.
5.
The superior plays
a supportive role. He tries, on a day
-
to
-
day basis, to help the subordinate
achieve the agreed upon goals.
6.
In the appraisal process, the superior plays less of the role of a judge and more of the role of one
who helps the subordinate attains the organizati
on goals or targets.
7.
The process focuses upon results accomplished and not upon personal traits.
MBO Process:
-
The main steps involved in the MBO technique of performance appraisal are as follows:
-
1.
Set Organizational Goals:
-
Goals of the organization ha
ve to be set after a thorough analysis of internal
environment (strengths and weakness) and external environment (opportunities and threats) of the
organization. The goals set should be defined in clear, precise and measurable terms. Goals should be
challe
nging and attainable.
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2.
Defining Performance Targets:
-
Every subordinate writes down his own performance goals, which are
work
-
related and career
-
oriented. His manager also writes down the goals he thinks the subordinate should
strive for. The two then disc
uss them, reach an agreement and put the agreed goals in writing. Thus,
employees at all levels are actively involved in goal setting. Joint goal setting and joint action planning are
essential elements of appraisal through MBO. Clear attainable goals
help
channel energies in the right direction and let the employee know the basis on which he will be judged.
The goals are periodically reviewed and revised to keep them flexible and up
-
to
-
date.
3.
Performance Reviews:
-
frequent performance review meetings
between the manager and the subordinate are
held. In the review meetings, progress is assessed, weaknesses and constraints are identified and steps to be
taken to improve performance are decided. Subordinates actively participate in this process.
4.
Feedback:
-
After every performance review feedback on performance is communicated to the employee so
that he can regulate and improve upon his own performance. On the basis of performance review rewards are
decided. New goals and performance targets are determined
for the next period.
2.
Assessment Center Method:
-
This method of apprising was first applied in the German Army in 1930.
Later business organizations also started using this method. This is not a technique of performance
appraisal by itself. In fact, it
is a system, where various experts do assessment of several individuals by
using various techniques.
In this approach, individuals from various departments are brought together to spend two or three days‟
working on an individual or group assignment simil
ar to the ones they would be handling when promoted.
Evaluators observe and rank the performance of all the participants. Experienced managers with proven ability
serve as evaluators. This group evaluates all employees both individually and collectively by
using simulation
techniques like role playing, business games and in basket exercises. Assessments are done generally to
determine employee potential for promotion. As assessment center model is shown in fig 5.4 below
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Source:
-
C.B. Mamoria and S.Manoria. “Dynamics of Industrial Relations” Himalaya (1985) page 432
Fig 5.4 an assessment center model
An assessment center generally measures interpersonal skills, communicating ability, abi
lity to plan and organize
etc. Personal interviews and projective tests are used to assess work motivation, career
-
orientation and dependence
on others. Paper and pencil tests are used to measure intellectual capacity.
In order to make this method effecti
ve, it is necessary to
•
State the goals clearly
•
Obtain top management support
•
Conduct job analysis
•
Train the assessor and
•
Periodically evaluate and revise the assessment programme.
3.
Human Resource Accounting Method:
-
Human resources are a valuable asset of
any organization.
This asset can be valued in terms of money. When competent, and well
-
trained employees leave an
organization the human asset is decreased and vice versa.
Human Resource Accounting deals with cost of and contribution of human resources to
the organization. Cost
of the employee includes cost of manpower planning, recruitment, selection, indication, placement, training,
development, wages and benefits etc. Employee contribution is the money value of employee service which
can be measured by l
abour productivity or value added by human resources. Difference between cost and
contribution will reflect the performance of employees.
Human resource accounting method is still in the transition stage.
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4.
Psychological Appraisals:
-
Psychological appraisal
s are conducted assess the employee potential. It is
conducted in the areas of employees
•
Intellectual abilities.
•
Emotional stability
•
Reasoning and analytical abilities.
•
Sociability
•
Interpretation and judgment skills.
•
Motivational responses.
•
Ability to
foresee the future.
Psychological appraisal results are useful for decision
-
making about employee placement, career planning and
development, training etc.
5.
360 Degree appraisal:
-
It is a method of appraisal in which people receive performance feedback fro
m
those on all sides of them in the organization
-
their boss, their colleagues and peers and their own
subordinates. Thus, the feedback comes from all around them, 360 degrees. This form of performance
evaluation can be very beneficial to managers because i
t typically gives them a much wider range of
performance
-
related feedback than a traditional evaluation.
6.
What is 360
-
degree feedback?
360
-
degree feedback is a method and a tool that provides each employee the opportunity to receive performance
feedback
from his supervisor and four to eight peers, reporting staff members, co
-
workers and customers. Each
individual in self
-
assessment also responds to most 360
-
degree feedback tools. 360
-
degree feedback allows each
individual to understand how others vie
w his effectiveness as an employee, co
-
worker, or staff member. The most
effective processes provide feedback that is based on behaviours that other employees can see. The feedback
provides insight about the skills and behaviours desired in the organizatio
n to accomplish the mission, vision, and
goals and livhe values. The feedback is firmly planted in behaviours needed to exceed customer expectations.
The purpose of the feedback is to assist each individual to understand his strengths and
weaknesses, and to
contribute insights into aspects of his work for professional development.
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Chapter Seven
Compensation and Benefit Administration
Compensation
Employees are the backbone of the organization. The attainment of organizational objectives lar
gely depends when
employees are motivated to work. Among other things, employees are motivated to work when they are provided
a
fair financial and non
-
financial compensation
for work rendered to the organization. What, then, is compensation?
What is its si
gnificance?
Compensation
is reward employees receive in exchange for their performance. It is concerned with wages and
salaries, pay raises, and similar monetary exchange for employees‟ performance (Holt, 1993). Well
-
designed pay or
compensation system ena
bles the organization:
-
To attract qualified employees required
-
To retain and motivate the existing workforce toward its goal achievement.
On the contrary, if compensation is not tied to work, employees are likely to look for a better paying job. Moreover,
other implications of pay dissatisfaction are illustrated in the figure (Werther & Davis, 1996) below.
A Model of the Consequences of Pay Dissatisfaction
As can be seen from the above
figure, in organization where employees are dissatisfied with the types of
compensations, their contribution toward
goal achievement tend to be lower.
In severe cases, pay dissatisfaction
may
lower performance, cause strikes increase grievances,
and
lead t
o forms of physical
or
psychological
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withdrawal
ranging from
absenteeism
and
turnover
to increased visits to the
dispensary
and
poor mental health
(Werther and Davis 1996).
Objectives of Compensation
The objective of a compensation administration is to
establish fair and equitable rewards to the employees
, so that
they are motivated to do the job in a better way for the organization. Moreover, Werther and Davis (1996) listed the
following objectives, which are sought through effective compensation manage
ment.
-
Acquire qualified personnel
Compensation needs to be high enough to attract applicants. Pay levels must respond to the
supply
and
demand
of workers in the labour market since organizations compete for employees.
-
Retain current employees
Employees may
quit when compensation levels are not competitive, resulting in higher turnover.
-
Ensure equity
Compensation management strives for internal and external equity.
Internal equity
requires that pay be
related to the relative worth of a job so those similar j
obs get similar pay.
External equity
means paying
employees what comparable employees are paid by other organizations in the labour market.
-
Reward desired behavior Types
of Compensation
In general, there are two types of compensation. These are:
1. Financi
al
2. Non
-
financial
Financial Compensation
Financial compensation, as shown in the figure next page, includes
direct compensation,
which is paid to
employees in the form of wages, salaries, bonuses, and commission in exchange for their performance, and ind
irect
compensation includes all financial rewards that are not included in direct compensation (Mondy & Noe, 1990).
Genet, an employee of the Ethiopian Civil Service College, for example, will receive indirect financial
compensation because her college pay
s 50 percent of all medical and hospital costs.
It is important here to distinguish
wage
from other forms of
direct financial compensation. Wages
are payments
based on the number of units (hours, days) that a person works for the organization or the number
of units produced
(piece rate system) (Baird, et, al, 1990). It is a payment to manual workers.
Salaries
are money paid on monthly or
annual basis to employees whose output can not be easily quantified. Clerical and administrative staff receives
salary.
B
onuses,
on the other hand, are lump
-
sum payments offered to employees in recognition of successful
performance, whereas
commission
is a special form of incentive in which payments to sales representatives are
made on the basis of a percentage of the sales
value they generate (Armstrong, 1996).
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Non financial Compensation
includes any satisfaction, which employees receive from the
job,
such as the need for
recognition, responsibility, personal growth and the like or from
environment
in which they work. This j
ob
environment consists of comfortable working conditions, competent supervision, pleasant work companions and
other related physical and social needs of employees. For example, being an accepted member of the work group
results in social motive satisfacti
on.
Financial compensation system is influenced by a series of internal and external factors. As Monday & Noe (1990)
pointed out the
organization, the labour market, the job
and
the employee
have an impact on the
job pricing
and the
ultimate determination of e
mployee‟s financial compensation. The major parties and issues of concern are shown in
the figure (Scarpello and Ledvinka, 1988) below.
Organizational Interest in Compensation
Why are organizations
interested in compensation? Organizations view compensation mainly as a means:
-
To attract qualified candidates for vacant positions
Direct
Indirect
The Job
Job Environment
Wages
Insurance Plans:
Interesting Duties
Sound Policies
Salaries
Life, Health,
<
hallenge
Competent
Supervision
Commissions
Social Assistance
Responsibility
Congenial Co
-
Workers
Bonus
Benefits:
Opportunity
Appropriate Status
Retirement
For Recognition
Symbols
Educational
Assistant,
Feeling of
Comfortable Working
Employee Services
Achievement
Conditions
Paid Absences:
Vacations, Holidays
Advancement
Job Sharing
Sick Leave, etc.
Opportunities
Components of Compensation
Source: Mondy & Noe, 1990
PARTIES
MAIN ISSUES OF CONCERN
Government
Ensure that financial compensation supports the
social and economic interests
of the broader
society.
Occupational groups
Protect members‟ human capital investment
Unions
Protect, maintain, and increase the welfare of the
worker.
Individual
Ensure that a balance is maintained between
contributions to work and the outcomes
received
from work.
Organization
Within budget constraints, attract individuals into
the organization, retain employees, and motivate
behavior toward achievement of organizational
goals.
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73
-
To retain competent and dedicated employees
-
To facilitate performance
-
To comply with government employment policies.
Moreover, compensation is an expense in the sense that it reflects the cost of labour (Mondey & Noe, 1990).
Organization often has compensation policies. As organizations differ in size and purpose, so do in pay levels.
According to Glueck (1978) there are
three alternative strategies, this might be chosen by organizations. These are
high, low, and comparable.
The high
-
pay
-
level strategy
In this strategy, the organization chooses to pay higher than the average pay levels. The assumption is that
paying a hig
her salary or wage will enable organizations attract and retain competent employees and this, in
turn enhance employees' productivity.
The low
-
pay
-
level strategy
In this alternative, the organizations pay a minimum salary or wage to employees. This may be
because of
poor financial condition or the work does not require highly qualified personnel. The low compensation policy
does not save money; rather it is quite expensive. In addition to being unproductive, low paid workers usually
damage their work instru
ments because of insufficient knowledge and skill. On the other hand, organizations
using low pay strategy may also have a high labour turnover rate.
The comparable
-
pay
-
level strategy
This strategy requires organizations to follow “equal pay for equal work
”. Here employees are paid based on
comparable value of jobs they are performing.
The choice of any of the above pay
-
level strategies may be affected by factor internal or external to the
organization. The following are some of the major factors that affec
t compensation decision.
-
Quality and quantity of needed skill
-
The organization’s current financial position andfinancial prospects for the coming year.
-
Cost of living index
-
Employees behavior, such as performance, turnover, absenteeism, unionization attemp
ts, and sabotage
(Scarpello & Ledvinka, 1988).
Furthermore, the profit levels of an organization can also affect employees‟ salaries or wages. This being the case,
who is a pay policy
-
decision maker? In most organizations, the top
-
level management makes
pay decisions by
considering the above factors.
Labour Markets Influence On Compensation
The number and types of employees indicated in the organization‟s human resource planning are mainly drawn
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74
from the labor market. Since the market directly affects the
pay
-
levels, analysis of the demand for and supply of
labour is imperative. The demand for human resources largely depends on
organization's ability to pay.
On the
other hand, the supply focuses on
the number ofpersons of work age; the attractiveness of th
e job in pay, benefits,
and psychological rewards; the availability of training institutions, and so on
(Glueck, 1978). When the supply of
employees exceed the demand, the initial pay
-
levels tend to go down. On the contrary, when the demand for
employees e
xceed the supply, the initial pay
-
levels tend to go up.
Job Influence on Compensation
Organizations appear to attribute similar values for similar jobs and different values to different jobs. In other
words, jobs employees are assigned to perform are a maj
or decisive factor of the amount of pay they will in turn
receive. Organizations pay for the value they attach to certain duties, responsibilities, and other job
-
related factors
(Mondy & Noe, 1990). If this is the case, the question of what are the techniq
ues used to determine the value of
jobs is an important one that requires an answer.
Compensation techniques
used by organizations for determining
the relative value of jobs are job analysis and job evaluation.
Job Analysis
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75
Job
Description
Job
Specification
Job
Standards
If compensation policy is to be
based on the nature of job, a job analysis activity must be conducted to identify the
similarities and differences among the various jobs in the organization. As we discussed earlier,
job analysis
is a
systematic process of determining te skill and knowle
dge required for performing jobs. It reveals the major
tasks,
duties
and
responsibilities,
the
relationship of a job to other jobs,
the
skill and knowledge required for each job, the
outcomes that are expected
and
working conditions.
The basic premise unde
rlying job analysis is that jobs are more
likely to be
described, differentiated,
and
evaluated
consistently if accurate information is available to reward
managers (Bratton & Gold, 1995).
As can be seen in the figure next page, to develop job descriptions
, job specifications, and job standards,
information relevant to the jobs to be analyzed must be collected through questionnaires, interviews, operation, and
other related methods of data collection.
PREPARATION FOR JOB ANALYSIS
1
COLLECTION JOB ANALYSIS
DATA
Job
Questionnaire
Data
Identification
development
collection
APPLICATION OF JOB ANALYSES INFORMATION
The process of analysis.
Source: Bratton & Gold; 1995
What are job description, specification and standard? If we recall,
job description
is written document that describes
the duties and responsibilities of a specified job.
Job specification
is a statement that explains the skill, knowledge,
and experience n
eeded to perform the job.
Job standard,
on the other hand, is a minimum acceptable level of
performance.
It is based on job analysis that organizations assign a financial value to each job. Thus, unless there is a clear
definition of the job and job perfor
mance standards it would be difficult to imagine how pay can be linked to
individual performance (Bratton & Gold, 1995). It is worth noting that
job evaluation
is also a means to compare
the relative values of various jobs in an organization. Hence, the ne
xt pages briefly examine how it is used to
determine financial compensation.
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Job Evaluation
A certain public enterprise may hire a chief administrative officer, accountant, mechanic, engineer, janitor,
economist, and so on. Here it is necessary to get a c
lear understanding of how is compensation determined for
various jobs in an organization.
Compensation
within an organization is determined by comparing one job to other
job. This comparison is made possible with job evaluation. Thus, what is job evaluatio
n?
Job evaluation
is that part
of a compensation system in which a firm determines the relative value of one job in relation to another
(Henderson, 1985). The major reason of job evaluation is to maintain
internal pay equity
among various jobs in the
organ
ization. Moreover, job evaluation is used to:
-
Identify the organization’s job structure
-
Bring equity and order to the relationships among jobs
-
Develop a hierarchy of job value that can be used to create a pay structure
-
Achieve a consensus among managers an
d employees regarding jobs and pay with in the firm
(Plachy, 1987).
Job evaluation rates the job and not the employee performing the job. It is, therefore, a process of analyzing the
worth of a job to that of another, without regard to personalities on the
jobs. In this process accurate job
descriptions and job specifications must be available to analyze and assign monetary value to organizational jobs.
As Ahuja (1988) noted, the more skill, education and responsibility required in a job, the more it worth.
Organizations use four major types of job evaluation methods. There are:
1.
Job Ranking
3. Factor Comparison
2.
Job Grading
4. Point
System
Job Ranking Method
The simplest method of job evaluation is
ranking.
A committee or evaluators review the job descriptions and rank
each job from the simplest to most challenging job in the organization. This job
ranking method is based on
subjective evaluation of relative value. Compensation for each job will be based on
the job hierarchy. The ranking
method is more suitable for small organizations having a limited number of employees.
Job Grading Method
The job grading or the classification method works by having each job assigned to a grade by matching standard
descripti
ons with each job‟s description, as shown below.
A Job classification Schedule for Use with the Job Grading Method
Directions: To determine appropriate job grade, match standard description with job description.
Factor Comparison Method
This method demands
a more quantitative analyses of the jobs involved. In this method, each job is broken down
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into factors, which are considered common to all types of jobs. The compensable factors used to compare jobs in
the organization are
skill, mental requirements, phy
sical requirements, responsibilities
and
working conditions.
For
each job in the organization, the factors are “ranked according to their relative importance in each job (Brotton &
Gold, 1995) and then the job evaluator assigns a monetary value to each factor. For example, a job with worth of
Birr1,200 per month may have its different contributing factors costed as follows:
As can be seen above, the monthly salary Birr1,200 is allocated among the five factors. Though its application is
complex in
the sense that, each factor has to be costed, the criteria for evaluating job are explicit.
Point Method
The
point rating system
is the most accurate and widely used method of job evaluation. This system resembles the
factor comparison method in that, in b
oth cases, jobs are broken down into factors like skill, mental effort,
responsibility, physical effort and working conditions. However, unlike the factor comparison where monetary
value is assigned to each job, here points are used to determine the worth
of jobs in the organization.
In allocating range of points to each job factor, the following steps may be followed.
1.
Assign a number (between 1 and 100) to each factor.
2.
Closely examine each factor in terms of its importance in relation to the other. For exa
mple, as shown in the
figure below, the physical effort requirements for the job of labour is thrice as important as skill requirements.
3.
Finally, each factor point value is added, to place job in order of importance.
As can see from the above table, it would mean that the
inspector’s
salary rate is thrice that of the
file clerk.
In this
manner, point
-
rating system would result into a logical monetary job
-
worth for all jobs in organizations.
Employee Influences On Compe
nsation
Compensable Factors
Allotted Birr
Skill Requirements
240
Mental Requirements
360
Responsibility
240
Physical Requirements
192
Working Conditions
168
Total Job Value
Birr1,200/=P.M.
Job Title
F a c t o r
Skill
Mental
effort
Respons
ibility
Physical
effort
Working
conditions
Total
Inspector
20
20
40
5
5
90
Secretary
20
20
35
5
5
85
File clerk
10
5
5
5
5
30
Labourer
5
2
2
17
9
35
Point System Matrix
Source: Bratton & Gold, 1995.
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The major goals of compensation are to
attract
and
retain
qualified employees to the organization. In most cases,
employees are willing and cooperative to do their jobs to the best of their abilities if they believe that pay is
relatively equitable
to performance. In other words,
compensation
affects employee decision
to stay or leave the
organization, to work effectively and to accept additional responsibilities.
An effective compensation system is
designed to satisfy employee needs and reinforce j
ob behavior consistent with organizational objective (Brattin &
Gold, 1995)
Recall from the earlier discussion that
organization, labour market,
and
the job
influence compensation system.
Moreover, factors related to employee like performance, seniority, a
nd experience also determine pay levels in an
organization.
Compensation and Performance
As Armstrong (1996) put it, paying for performance is the process of providing a financial reward to an individual,
which is linked directly to his/ her performance.
Nothing is more demotivating to productive employees than to be
paid equal salary as less productive employees. If this is the case, organizations need to practice varies method to
improve job performance. The most common once are piecework, bonus schemes
and commission. Piecework
(Payment
-
by
-
Results) is a reward system in which rewards are related to the pace of work / effort (Bratton & Gold,
1995). That is, the faster an employee works, the higher the output and the greater the reward. Bonuses are rewards
for successful performance and are paid to employees as lump sum. Commission, on the other hand, is a reward
paid on the performance of individual, typically salaried/sales (Bratton & Gold, 1995). The commission earned is a
proportion of the total sales a
nd may be added to basic salary. As discussed above compensation system serves as
an incentive for employees to do their jobs to the best of their abilities and efforts. Therefore, organizations must
have a reasonable standard against which performance can
be compared. This,
among other things, enables organizations to have a fair determination of reward. Otherwise, the incentive system
may rather demoralize employees if it does not reflect expected performance levels.
Seniority and Experience
Seniority
ref
ers to the length of time employees have been working in an organization. Employees are more likely
to be committed to the achievement of organizational objectives, if their long services are considered as a basis for
pay increases or have some value durin
g promotion. Advocates of paying for seniority believe that it enables the
organization to maintain stable workforce without excessive turnover. The seniority must be linked with experience
on the job. Organizations compensate employees on the basis of exp
erience, because “sometimes the practice is
justified because of the valuable insights that can only be acquired through experience on the job" (Mondy & Noe,
1990).
Pay Structures
In the process of considering the values of jobs in an organization, attention must paid to the job evaluation results
and the pays in the labour market. The
relative value
of jobs, in the organization, is determined by the
job
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evaluation
whereas its
absol
ute value
is determined by the labour market (supply and demand). To set the pay level
the job evaluation and pay survey rates are combined using graph. As shown in the graph next page, the horizontal
axis shows job structure originated through job evaluat
ion. All similar jobs are classified in one grade and they have
the same range.
A
pay grade
is the grouping of similar jobs to simplify the job pricing process (Mondy and Noe, 1990). For
example, as can be noted from the graph, key jobs ABC (grade 1) have
lower pays and
pay range
than jobs DEF
(grade 2). The pay range defines the lower and upper limits of pay for jobs in a grade (Bratton & Gold, 1995). The
range allows organizations to pay according to
seniority
and or
performance.
Benefits (Indirect Compen
sation)
In addition to financial compensation, employees aspire various benefits because of their membership in the
organization. What then are benefits?
Employee benefits
are the indirect form of the total compensation; they
include paid time away from wo
rk, insurance and health protection, employee services, and retirement income
(Milkovich, 1991). Recall that direct compensation such as salaries, wages or bonuses are based on the nature of the
jobs and employees‟ performance. Benefits, however, are indir
ect compensation that organizations provide to their
employees and are not directly related to performance.
Objectives
What do organizations gain from benefits? Benefits enable organizations to retain and attract qualified personnel.
Moreover, employee ben
efits policies of an organization are to:
-
Reduce fatigue
-
Reduce turnover
-
Discourage labour unrest
-
Minimize overtime costs
(Werther &
-
Satisfy employee objectives
Davis,
1996)
-
Aid recruitment
Major Categories of Benefits
Employee benefits, according to
Werther and Davis, can be divided in the following major categories:
1.
Insurance Benefits
The financial risks encountered by employees and their families can be spread by insurance. These risks
are shared when funds are pooled in the form of premiums. Then,
when insured risks occur, the covered
employees or their families are compensated. Here organizations can purchase life, health and work related
accident insurance.
2.
Security Benefits
These are non
-
insurance benefits that provide income protection to employ
ees before and after retirement.
Provision of such benefits is based on earnings and years of services in the organization. The benefits are
effective during separation, retirement, death, and disability.
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3.
Time
-
off Benefits
In this type of benefit employees
are paid for time not involved in performance. Time
-
off benefits include
sick leave, holidays, vocations, maternity leave, education leave and other related leave of absence. Here
employees are provided with an opportunity to rest and refresh their minds.
4.
Employee Services
These services include educational assistance, subsidized food services, financial and social services and
the like.
Non
-
financial Compensation
So far, we have discussed employee benefits, which cost the organization mon
ey either directly or indirectly.
Advocates of motivation claim that employees are not only be satisfied with basic needs, but other subsequent
needs such as social, ego, and self
-
actualization are becoming more important (Mondy & Noe, 1990). These higher
order needs may be satisfied through the
job or job environment or both.
The benefits each employee would value
depend on their personal preferences. In most cases, employees may get personal satisfaction if the job provides
them opportunities for
recognit
ion, feeling of achievement,
and above all
advancement opportunities.
Jobs to be
challenging, meaningful, and interesting, organizations must attempt to match the job requirements and individual
abilities. The
selection
and
placement
processes are extremel
y important in this context (Mondy & Noe, 1990). In
addition, organizations must establish the proper working environment so that employees perform their jobs
effectively. By creating a conducive job environment, supervisors should enable their subordinate
s to do their jobs
to the best of their abilities. Other major factors that are part of job environment include
sound policies, congenial
co
-
workers, appropriate status symbols
and
comfortable working conditions.
These factors, among other things are
hoped
to lead to job satisfaction, improve morale and increase employee commitment.
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Chapter Eight
Integration and Discipline
Employee Discipline
The organizational
rules
and
regulations
are intended to direct and control the effective functions of employees.
Thus, to ensure compliance with organizational standards rules and regulations must be communicated to all
employees. This will enable employees to maintain desired discipline in the
workplace.
Discipline,
according to
Mondy and Noe (1990), is the state of employee
self
-
control and orderly conduct
and indicates the extent of
genuine teamwork
within an organization. Werther and Davis (1996) suggest two ways to handle disciplinary
cases
in an organization. These are:
Preventive discipline
is an action taken to encourage employees to follow standards and rules so that
infractions are prevented. Its basic objective is to encourage self
-
discipline.
Corrective discipline
is an action that follows a rule infraction. It seeks discourage further infractions and
ensure future compliance with standards and rules. The corrective or disciplinary action is a penalty, such as
warning or suspension without pay. These action are ini
tiated by the employee immediate supervisor but may
require approval by a
higher
-
level manager.
In principle, disciplinary action should aim at correcting
unaccepted behavior. Most organizations take
progressive disciplinary action
in order to give employe
es
opportunities to learn from their mistakes. In this regard, Chandler and Plano (1988) have suggested that there
are
five steps, which can be used to discipline employees in an organization. These are:
1.
Informal talk or counseling
is used for minor first
-
time infractions. A friendly discussion will often
clear up the problem. The supervisor explains what is expected from the employee and allows
employee to express his/her views. The discussion is documented.
2.
Oral reprimand or warning
is used for second off
enses or more severe first
-
time rule violations. The
employee is told the interview is an oral reprimand. Previous violations are mentioned. The employee
is also told that his/her behavior could lead to serious disciplinary action if not corrected. The
emp
loyee is left with the feeling that he/she must improve in the future. The interview is documented.
3.
Written reprimand or warning
is a letter or memorandum written to the employee listing prior
accidents, specifies on what behavior is expected, how the empl
oyee is not meeting the expectations,
what will happen if the behavior is not corrected, and period of time for correcting the behavior. A
copy of the letter is placed in the concerned employee's file.
4.
Suspension or disciplinary layoff
occurs if the behavi
or is not corrected. The employee is suspended or
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laid off for one to thirty day(s). This is the final step that attempts to correct behavior before discharge.
5.
Discharge
is the most drastic form of disciplinary action as it separates the employee from the
job. It is
reserved for the most severe offenses and is taken after other corrective efforts have failed.
LaborRelations
Labor union
is an organization of workers whose purpose is to protect and maintain the interests of union members.
As workers represent
ative, labor unions "provide workers with a 'collective voice' to make their wishes known to
management and thus bring actual and desired conditions closer together (Armstrong, 1996). This worker
organization is established to bargain with management about
pay, working hours, conditions of employment and to
make joint decisions with management on matters affecting their members' well
-
being. Furthermore, the following
broad objectives characterize the labor unions as a whole.
-
To secure and, if possible,
improve the living standards and economic status of its members.
-
To enhance and, if possible, guarantee individual security against threats and contingencies that might
result from market fluctuations, technological change, or management decisions.
-
To crea
te mechanisms to guard against the use of arbitrary and capricious policies and practices in the
workplace
(Mondy& Noe, 1990).
Collective Bargaining
Collective bargaining
is basic to labor
-
management relations. It is
a joint process
of job regulation unde
rtaken by
management and trade unions that negotiate to establish pay and conditions of employment (Beardwell& Holden,
1996). This
contractual agreement
is hoped to give workers and management an identity of purpose and provide
an atmosphere in which both
focus their attentions towards the achievement of organizational objectives.
Such
union
-
management agreement enables to negotiate better position to urge workers to do their jobs as
per the contract.
In an organization where a trade union is established an
d recognized by the management, collective bargaining will
take place. For the bargaining to take place, according to Beardwell and Holden (1996) the following conditions
must exist:
-
Employees must be prepared to act collectively and recognize their common
interests.
-
Management must recognize trade unions and their representatives as legitimate bargaining agents for
labour, trade unions must be free to organize employee without pressure from state or employer control.
Collective bargaining is a means to r
each negotiable agreements on matters pertaining to employment.
This joint labour
-
management agreement has two outcomes. These are:
Substantive agreements
-
they set out agreed terms and conditions of employment covering pay and
working hours and other aspe
cts such as holidays, overtime regulations, flexibility arrangements and
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allowance (Armstrong, 1996).
Procedural agreements
-
which set out an agreed course of action for various eventualities such as
equal opportunities, recruitment, redundancy, disciplin
e etc. (Howe, 1995).
The process of bargaining is carried out by
negotiation
where workers' representative (union) and management
discuss issues with a view to relating a common agreement. As noted by Beardwell and Holden (1996) negotiation
can be conducte
d using distributive and integrative approaches.
Distributive bargaining.
One party will seek to achieve gains at the expense of the other. The aim is the
division of a limited resource between groups both of whom wish to maximize their share. The importan
t
factor in this approach is the power each side has to damage their opponent if they do not comply with their
demands. Thus the threatened use of sanctions, for example, is strike and lock
-
out.
Integrative bargaining.
This approach seeks mutual gains in a
reas of common interest with a problem solving
approach from the parties involved.
Stages in Negotiations
Preparation:
Set objectives.
These are normally prioritized into three levels. These are:
-
The basic minimum requirement that must be achieved,
-
The
desirable requirements that the negotiator would like to achieve,
-
The optimum requirement or best level of achievement;
Research the background to the negotiation including the bargaining power of the other party. Prepare the case to
be argued.
Select the
negotiators who should be good communicators, persuasive, acceptable to the other party, and
authoritative.
Negotiation
-
Exchange information;
-
Listen to the other party's position;
-
Signal likely compromise points
-
Propose ways forward.
Closing
-
Summarize
positions;
-
Propose a final offer, which meets the needs of both parties;
-
Reach agreement.
Although the aim of collective bargaining is to reach a common agreement, sometimes there may be disputes that
need resolution. How can such disputes of two parties b
e resolved? Various methods can be used to resolve
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disputes. These are conciliation, mediation or arbitration.
Conciliation
-
a means where by a neutral third party acts as a go
-
between to settle the disputes.
Mediation
-
a means where by a third party prop
ose recommendations which enable the two parties to resolve the
disagreement.
Arbitration
-
the submission of a dispute to a neutral third party. Both sides of the issue are heard by an
arbitrator who acts as judge and jury. After weighing the facts, the a
rbitrator renders a decision (Werther&
Davis, 1996).
Grievance Handling
Grievance handling is an essential part of any business, in case people have been dismissed unlawfully so there has
to be a structure and rules and regulations in place. Even in well
-
r
un businesses, it may sometimes be necessary to
take disciplinary action against employees.
So in essence it is vitally important to have written disciplinary rules and procedures in place in the workplace. If
problems do arise, these procedures should hel
p deter employees from making employment tribunal claims and
ensure that the company is dealing with employees as fairly as possible
Grievance Procedure (example)
Stage
1: Bring the grievance to the attention of the Manager usually the head of department
within 5 working days.
Stage
2: If the employee is not satisfied with the decision in stage one, can be referred to Human Resources
Department within 5 days of the decision being made. The HR should give written decision with 5 days of
receiving the grieva
nce.
Stage
3: If the grievance can‟t be handled by the company within the given deadline, it will be directly to
concerned parties as per the labor proclamation and or the collective bargaining.
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Chapter Nine
Promotions,
Demotions, Transfers and Separation
Promotion
-
Definitions
“Promotion” is a term which covers a change and calls for greater responsibilities, and usually involved
higher pay and better terms and conditions of service and, therefore, a higher status or ra
nk.
According to Scott and Clothier: “A promotion is the transfer of an employee to a job which pays more
money or one that carries some preferred status”.
A promotion may be defined as an
upward advancement of an employee
in an organization to another job
,
which commands better pay/wages, better status/prestige, and higher opportunities/challenges, responsibility, and
authority, better working environment, hours and work and facilities, and a higher rank.
THE OBJECTIVES OF PROMOTION
♦
To put the worker in a
position where he will be of greater value to the company and where. He may
derive increased personal satisfaction and income from his work;
♦
To remove a worker from his job as an alternative to avoid the embarrassment of firing or demoting
him;
♦
To
recognize an individual‟s performance and reward him for his work so that he may have an
incentive to forge ahead. Employees will have little motivation if better jobs are reserved for
Outsiders;
♦
To increase an employee‟s organisation effectiveness;
♦
To bui
ldup morale, loyalty, and a sense of belonging on the part of the employees when it is brought
home to them that they would be promoted if they deserve it;
♦
To promote job satisfaction amont the employees and give them an Oppoirtunity for unbroken,
continuo
us service;
♦
To provide a process of “selective socialization Employees whose personalities and skills enable them
to fit into an organisation human relations programme tend to stay on; while those whose personalities
with those of the organisation tend to
leave;
♦
To attract suitable and competent workers for the organisation;
♦ To create among employees a feeling of contentment with their present conditions and encourage them
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to Succeed in the company.
TYPES OF PROMOTIONS
1.
Upgradation
2.
Vertical Promotion
3.
Dry
Promotion
Demotion‟ has been
defined as “the assignment of an individual to a job of lower rank and pay usually
involving lower level of difficulty and responsibility.
In other words, demotion refers to the lowering down of the status, salary and responsibilities of an
employee. It is
used as a punitive measure when there are serious branches of duty on the part of an employee
when it is often a preliminary to a dismissal. When an employee is demoted, his pride suffers a more severe jolt
than it does when he is superseded by his junior
.
When a demotion will be practice in an organisation? :
The factors considered for the demotion are:
❖
When departments are combined and jobs eliminated, employees are often required to accept lower
-
level
position until normalcy is restored. Such demotions
are not a black mark against an employee.
❖
Inadequacy on the part of the employees in terms of job performance, attitude and capability
-
as happens
when an individual finds it difficult to meet job requirements standards, following his promotion; and
❖
When,
because of a change in technology, methods and practices, old bands are unable to adjust, or when
employees, because of ill health or personal reasons, cannot do their job properly.
❖
Demotion is also used as a disciplinary measure.
Demotions have a serious
impact on need fulfillment. Needs for esteem and belonging are frustrated,
leading to a defensive behaviour on the part of the person demoted; there is compiling, emotional
turmoil, inefficiency or resignation. Hence, demotions are made quite
infrequently. Many managers prefer to
discharge employees rather than face the problems arising from demotion.
Transfer
-
Definition
The factors to be considered for promotions
♦ Length of service
♦ Previous work history
♦ Cooperation
♦ Education
♦ Based on ability
♦ Merit
♦ Trainingcourse
completed
♦ Hard work
♦ Honesty
DEMOTION
-
DEFINITION
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A transfer is a horizontal or lateral movement of an employee from one job, section, department, shift, plant or
position
to another at the same or another place where his salary, status and responsibility are the same. It
generally does not involve a promotion demotion or a change in job status other than movement from one job
or place to another.
The Reasons Followed in Tra
nsfers Are:
■
To satisfy such needs of an organisation
as arise out of a change in the quantity of production,
fluctuations in work requirements, and changes in the organizational structure; the introduction of new
lines of production the dropping of existin
g product lines, the reallocation of or reduction in the
workforce due to a shortage or a surplus in same section so that lay
-
offs may be avoided; filling in of
the vacancies which may occur because of separations or because of the need for suitable adjust
ments
in business operations.
■
To meet an employee’s own request,
when he feels uncomfortable on the job because of his dislike of
his boss, or his fellow workers, or because better opportunities for his future advancement do not exist
there, or because of
family circumstances which may compel him to change the place of his residence.
■
To utilize properly the services of an employee
when he is not performing satisfactorily and
adequately and when the management feels that he may be more useful or suitable els
ewhere, where
his capacities would be better utilized. Such transfers are called remedial transfers.
■
To increase the versatility of the employee,
by shifting him from one job to another so that he may
have ample Opportunities for gaining a varied and broad
er experience of work. Such transfers are
known as versatility transfer.
■
To adjust the workforce of one plant with that of another,
particularly when one is closed down for
reasons beyond the control of the employer. Such transfers are known as plant trans
fer and are
generally effected on humanitarian grounds to ensure that persons who have been long in service of an
organization are not thrown out of employment.
■
To replace a new employee by an employee
who has been in the organization for a sufficiently long
time. Such transfers are known as replacement transfers, the purpose being to give some relief to an
old employee from the heavy pressure of work.
■
To help employees work according to their convenien
ce
so far as timings are concerned; for example,
an employee is transferred from night shift to morning shift or from the first to the second shift (as in
the case of women workers who may like to look after their children and do the necessary domestic
wor
k in the morning hours). Such transfers are known as shift transfer.
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■
To penalize the employee transfers are also done,
under which either a difficult trade union activist or
intriger or sealawyer may be transferred to a remote branch or office where he can
not continue his
activities. In Government organizations, this practice is widespread, and is also preferred by the
employee to the grim alternative of disciplinary action.
■
Transfer for the maintenance of a tenure system. In senior administrative services
of the Government
and also in industries, or where there is a system of annual intake of management trainees such
transfers are common here the employee holds a certain job for a fixed tenure but he is made to more
from job to job with a view to enabling h
im to acquire a variety of experience and skills and also to
ensure that he does not get involved in politicking informal groups.
Separations
-
Definitions
“Separation” means cessation of service of agreement with the organization for one or other reason.
The employee
may be separated from the pay roll of a company as a result of:
1.
Resignation;
3. Suspension; and
2.
Discharge/Termination;
4. Lay
-
off
1.
Resignation:
Resignations may be put in voluntarily by the employees on grounds of health, physical
disability,
better opportunities elsewhere, or maladjustment with company policy and officers, or for
reasons of marriage (frequent in case of young girls): or they may be compulsory when an employee is
asked to put in his resignation if he wants to avoid termination
of his services on the ground of gross
negligence of duty on his part, or some serious charge against him.
2.
Discharge:
A discharge involves permanent separation of an employee from the pay
-
roll for violation of
company rules or for inadequate performance.
A
discharge becomes necessary:
(i)
When the volume of business does not justify the continuing employment of the persons involved;
(ii)
When a person fails to work according to the requirements of the job either because of incapacity
or because he has deliberately s
lowed down on work, or because there is no suitable place where
he can be transferred.
(iii)
When an individual forfeits his right to a job because of his violation of a basic policy often
involving the safety of others, the morale and discipline of a group.
Cause of Discharge:
A discharge seldom arises from a single impulsive act. Many causes may account for it.
HRM
Page
89
Some of these are:
(a)
Frequent Causes: Inefficiency, dishonesty, drunkenness, carelessness or indifference, violation of rules.
(b)
Infrequent Causes: Accid
ents, insubordinations, personal conduct, un cleanliness, infraction of rules,
destructive negligence, wastefulness, and physical unfitness.
(c)
Other Causes: Carelessness, lack of co
-
operation, laziness, tardiness in starting work, frequent absences
without l
eave, dishonesty, lack of specific skill, preventing promotion, promotion, adverse attitude
towards the organization.
3.
Suspension
This is a serious punishment, and is generally awarded only after a proper enquiry has been conducted.
For reasons of disciplin
e, a workman may be suspended without prejudice during the course of any
enquiry.
4.
Lay
-
off
A lay
-
off refers to an indefinite separation of the employee from the pay roll due to factors beyond the
control of the employer; the employee is expected to be
called back in the foreseeable future. It involves a
temporary or permanent removal from the pay
-
roll of persons with
-
surplus skills. The purpose of a lay
-
off is to reduce the financial burden on an organisation when human resources cannot be utilized
pr
ofitably.
Thus, a lay
-
off means the failure, refusal or inability of an employer to provide employment to a
workman whose name is borne on the muster roll of his establishment. It is
resorted to as a result of some such confide reasons as
factors which are beyond the control of
the employers:
(a)
Breakdown of machinery;
(b)
Seasonal fluctuations in markets and
loss of sales;
(c)
Accumulation of stocks or financial
slump;
(d)
Shortage of raw material, coal and
power;
(e)
Production delays;
and
(f)
Other technological reasons