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HRM lecture-03.pdf
1.
2.
3. Introduction
Generic Purpose of HRM indicated that any organization needs to
have a workforce who can give maximum contribution or the
performance to achieve organizational success.
Most of the time, success of an organization and success of an
individual is measured in terms of performance. As a controlling
function it is a must to evaluate and review employees'
performance on a regular basis.
4. Definitions
Performance appraisal is a process for individual employees and those
concerned with their performance, typically line managers, to discuss
their performance and development, as well as the support they need
in their role (CIPD, 2015).
5. Performance Management
Armstrong and Baron (2004) define performance
management as ‘a process which contributes to the
effective management of individuals and teams in
order to achieve high levels of organisational
performance.
Performance management is a process, not an event. It
operates as a continuous cycle (CIPD, 2015).
7. Purposes of performance appraisal
Generally, purposes of performance appraisal can be
classified as either administrative or developmental
8. Steps in Appraising Performance
Establishing performance standard
Communicating performance expectations to
employees
Measuring actual performance
Comparing actual performance with standards
Discussing the appraisal with the employee
Initiating corrective action
10. Appraisal errors
i. Halo effect
ii. Central tendency
iii. Harshness and Leniency
iv. Bias
v. Recency error
vi. Contrast error
vii. Similar-to-me error
viii. Unclear standards
13. Multiple Choice Method
Several statements are given to select under each criteria.
Criteria – Attendance
Statements
5 – Perfect Attendance
4 – No more than 2 unauthorized leaves
3 – No more than 4 unauthorized leaves
2 – More than 5 unauthorized leaves
1 – More than 6 leaves
14. Rank Order Method
1. The evaluator selects the most important employee.
Others are ranked best to the worst.
Employee
Quality of
Work
Attendance Total Rank
A
B
C
D
E
1
2
3
4
5
3
1
2
4
5
4
3
5
8
10
2
1
3
4
5
15. Paired comparison method
In this method, every subordinate is paired with and compared to
every other subordinate for certain performance.
16. Critical Incident Method
1. A separate book is to be used where on each side,
positive and negative critical incidents should be
recorded for each and every employee.
Example: For a Waiter
Positive critical incident : Handing over a fallen purse to
customer
Negative critical incident : Blaming to a top ten
customer
17. Essay Appraisal
Rater writes a narrative describing an employee’s
strengths, weaknesses, past performance, potential
and suggestions for improvement.
This is the simplest method of appraisal. It requires no
evaluation forms or extensive training to the rater. But
the rater’s writing skill determines the employees’
actual performance.
18. Behaviourally Anchored Rating
Scale (BARS)
This method combines the critical incident method and graphic
rating scale method.
Key behaviours/ critical behaviours in performing a job are identified
and then rated from extremely good to extremely poor.
19. MBO – Management By Objectives
1. Study the job
Both supervisor and employee get together and
study the job.
Eg: Sales manager and Representative together study
the job and set duties, objectives
2. Agreement of duties
To Create new customers
To sell X units product
20. MBO
3. Establish Objectives
To create 20 new customers for the year
To sell 180 units of X product within the year
4. Develop appropriate standards
Excellent 20 – 18 new customers
Very Good 17 – 14 new customers
Good 13 – 10 new customers
Average 09 – 07 new customers
Poor Less than 07 new customers
21. MBO
5. On going monitoring and discussions
6. Evaluation
Compare actual performance and desired
performance
7. Feedback
Superior and employee together explore reasons for
variations
23. 23
Working definition
The continuous relations between management and
workers and between workers’ organizations and
managers in an organization.
LR = Collective Relations + Individual Relations
25. To create, maintain and promote industrial peace
To generate and promote industrial democracy
To maintain sound relationship between labor and
management
To improve the productivity
To work together to enhance standard of living of all
concerns
Objectives of good LR
25
26. 26
Higher Standard of Living
Higher per capita income
Higher Literacy Rate, Higher Life Expectation, Low
death rate and etc…
Higher GDP
Higher productivity
Good Labour Manager Relation
27. 27
I
n
a
p
p
r
o
p
r
i
a
t
e
L
M
R
Creation of
industrial unrest
and disruption
to industrial
peace
Many evil
Consequences
•Decline of
employee moral
•Low job
involvement
•Wastage of
resources
•Low efficiency
•Low effectiveness
•Low productivity
•Damages of
properties
•Decline of
investments
•Hindering
expansion
programmes
28. 28
The LR system
The LR system includes three major parties.
1. Management
2. Trade union
3. Government
29. 29
Management Trade Union
Government
Giving job opportunities
Active goals & objectives of the organization while
giving expected level of performance
Both parties must have to made collective
agreements
Protect from
illegal trade
union
actions
Protect from
illegal
management
activities
30. Conditions for good Labor Manager Relations
Recognition of the employer that the workers are
part of the team working towards the common
objective/s
31. Causes of poor Labor Manager Relations
The main cause or source of poor LMR is
inefficiency and labor unrest.
32. Trade Unions
Trade Union is a formal organization of
workers which is established to uplift the living
standards of it’s members by providing welfare
and other facilities.
32
33. Definition of a Trade Union
Any combination whether temporary or permanent,
formed primarily for the purpose of regulating the
relations between workman and employer or between
workman and workmen or between employers and
employees or for imposing restrictive conditions on the
conduct of any trade or business and includes any
federation of two or more trade unions.
(Indian Trade Union Act, 1926)
33
34. Common Characteristics of a Trade Union
1. It is a formal organization
2. It is a legal entity
3. It operates continuously
4. It is a voluntary organization
34
35. Objectives of Trade Unions
Assure fair wages for workers
To improve worker’s working conditions
To assure the worker’s share from profitability
To protect workers interest
To ensure the worker’s security of employment
35
36. Objectives of Trade Unions
Protect it’s members from illegal management
actions
To protect the larger interest of the society by
adding in the improvement of a trade and
industry
To achieve those objectives, unions have to perform
certain activities which are identified as functions.
36
37. Functions of Trade Unions
Take part in various trade union actions such as
picketing, strikes…
Represent it’s members internally
Represent it’s members externally
Bargain with the management and come in to collective
agreement/s
37
38. Functions of Trade Unions
Organized various welfare programs for it’s
members
Organizer and provide educational and other
facilities for the families of it’s members
Relations with the government for legal
assurance
38
39. Why do workers join with Trade Union/s?
39
Inefficient, discriminate, biased and weak management
Job dissatisfaction
Union instrumentality
Unionization
Individual attempt to
solve the problem
Job satisfaction
Successful
Unsuccessful
41. 41
Why employees join with Trade Unions?
To facilitate rectification of grievances
It is compulsory for all to join a trade union (only
in some countries)
To safe guard against victimization
To enhance and show the unity and solidarity of
the workforce
To secure better working conditions
42. 42
Other than the above, Mills (1994) explained five
major reasons for joining with TUs. They are;
In Opposition to management
To participate in union activities
To exercise leadership
Social Pressure (other people urge to do)
Compulsory Unionism (only in some countries)
43. Disadvantages of Trade Unions
43
Trade Union representation of collective interest
TU’s representation of external factors such as
external political influences, which disrupt the
organization’s unitary approach
It’s interest of rules and regulations
Presentation of unfair demands which may not
be affordable
44. Advantages of having Trade
Unions
44
Fulfillment of the agency function
Identify workplace hazards and problems
TUs act as the voice of grievances and
complaints of it’s membersworkers
TUs bring some certainty and discipline to the
work place
45. Advantages of having Trade
Unions
45
Influence on the application of proper HRM
practices
Trade Unions may help to maintain the wages at
a uniform level in terms of the actual economic
value.
46. Collective Bargaining
Collective Bargaining is a discussion which occurs
between management and trade union/s in search
of an agreement relating to various terms and
conditions of the employment
The process is to generate an agreement which is
called as the collective agreement
46
47. Collective Bargaining
In search of collective agreement management does
not deal with employees individually. Management
discuss only with trade union/s
47
48. Successful CB gives advantages to all parties
Successful CB
Management
Employees
Society
48
49. Advantages to the Management
Get opportunity to justify the decisions taken by
management
Can solve problems and conflicts before if come in
to a crucial situation
Can establish and maintain discipline among
employees
Give an opportunity to an effective communication
Build trust about the management
49
50. Advantages to TUs / employees
Can strengthen the unionism (by gaining power)
Have high possibility to win employee demands
Can influence to minimize illegal management
activities
Build confidence and responsibility about work done
50
51. Advantages to the Society
Help to establish industrial peace
Enhance the trustworthiness among each other
51
52. Subject matters to collective bargaining
Anything regarding to the employment can be a subject
matter to CB, such as;
Salaries, Wages and increments
Leave
Bonus and incentive payments
Profit sharing
Working time
Working conditions
Promotions, transfers and disciplinary matters
52
53. Subject matters to collective bargaining
Terminations
EPF / ETF
Job security
General Employment conditions
Settlement of grievances and conflicts
Management rights
Union activities and responsibilities
Recognition of Employees’ Unions
53
54. Subject matters to collective bargaining
Retirement benefits
Training and Development opportunities
Welfare facilities
54
55. Objectives of collective bargaining
To maintain cordial relations between employer and
employees by settling conflicts
To protect the interest of workers through collective
actions
To resolve the differences between employer and
employees
55
56. Objectives of collective bargaining
To avoid the need for government intervention/s
To ensure the participation of trade unions in the
industry
To promote industrial democracy
56
58. Preparation Stage
Appoint the bargaining committee
Study / monitor the environment
Determine counter proposal/s or management offers
Get approval to the offer/s
Check the TU situation or actions
Decide the participation of government representatives
Decide Date, Time and the Place…. for negotiations.
58
61. 61
Joint Consultation
This is a method of getting employee participation in
the decision making process through discussions
with employee representatives on matters
relating to employment.
62.
63. Introduction
Employee movements refers to changes that occur with
regard to the employment of employees.
These changes include Promotions, Transfers, Layoffs,
Demotions, Dismissals, Terminations, Retrenchments
and Retirements.
63
64. Promotions
Promotion is the advancement of an employee to a
better job.
Better in terms of greater responsibilities, more prestige,
greater skills and also increased rate of salary is the
result of a promotion.
Promotion is a re – assignment of an employee to a
higher rank job.
64
65. Promotions
A better job is a job that consists of more or all of the
following.
More Responsibility
More Authority
More Status
More Prestige
More Pay
Better job terms and conditions
65
66. Types of Promotion
Up Grading
Up classing
Different functional Field
Same Functional Field
Discuss each type of promotions with examples.
66
67. Methods of Promoting Employees
By a Management Decision
(Close method)
By Internal Advertisement
(Open method) - This is recommended for
Organizations to apply
67
68. Importance of Promotions
1. Employees increase their productivity in order to get
promotions
2. Employees who expect career development will increase
loyalty to the organization
3. Can get more contribution from younger employees
who expect career progression
4. Reduce employee absenteeism and turnover in long
run
68
70. Transfers
Transfer is a movement of an employee form one job to
another on the same occupational level and at about
the same level of salary.
No considerable increase or decrease in duties and
responsibilities is involved though there may be a
change in their specific nature and in working
conditions.
70
71. Transfers
Transfer can be given,
− from one job to another job
− from one place to another place
− from one time to another time
− from office to field
− from field to office
71
72. Types of Transfers
1. Productive Transfers
2. Policy Oriented Transfers
3. Disciplinary Transfers
4. Remedial Transfers
5. Vacant Transfers
6. Shift Transfers
7. Interest Oriented Transfers
8. Problem Oriented Transfers
Discuss each type of transfers with examples??
72
73. Layoff
Layoff is a temporary stoppage of the service of an
employee due to a reason which is uncontrollable by the
management.
73
74. Reasons for Layoff
Seasonal or periodic fluctuations in the demand for the
product
Shortage of main raw material
Accumulation of stocks
Breakdown of a main machine (s)
Natural disasters such as floods or droughts
74
75. Methods of Layoff
1. Bumping
2. LIFO
3. FIFO
4. Agent Method
5. Formal
Discuss each method of layoff???
75
76.
77. Motivation
Motivation is a human psychological characteristic
that contributes to person’s degree of commitment.
It includes the factors that cause, channel and sustain
human behavior in a committed direction.
78. Contemporary views of Motivation
Need theory
Theory of motivation that addresses what people need
or require living fulfilling lives particularly with regard
to work.
79. Maslow’s hierarchy of needs
Theory of motivation that people are motivated to meet five types of needs,
which can be ranked in a hierarchy.
Pyramid presenting Maslow’s hierarchy of needs
80. Hertzberg’s theory that work dissatisfaction and satisfaction arise
from two different sets of factors.
81. ERG Theory
Theory of motivation that says people strive to meet a
hierarchy of existence, relatedness, and growth needs; if
efforts to reach one level of needs are frustrated, individual
will regress to a lower level.
Equity Theory
A theory of job motivation that emphasizes the role played by
an individual’s belief in the equity of fairness of rewards and
punishments in determining his or her performance
satisfaction.
82. Expectancy Theory
A theory of motivation that says that people choose how
to behave from among alternative courses of behavior,
based on their expectations of what there is to gain from
each behavior.
Expectancy model
Three major components
Performance- outcome expectancy
Valence
Effort-performance expectancy
83. Intrinsic Reward
Psychological reward is experienced by an individual.
Extrinsic Reward
A reward that is provided by an outside agent, such as
supervisor or work group.
Reinforcement Theory
An approach to motivation based on the “law of effect” – the
idea that behavior with positive consequences tends to be
repeated, while behavior with negative consequences tends not
to be repeated.
Goal-setting Theory
A theory of motivation that focuses on the process of setting
goals.
84.
85. What is discipline?
Discipline involves controlling work and behaviour of
employees in compliance with all the relevant rules and
regulations .
Discipline management can be defined as the development,
implementation and maintenance of an appropriate discipline
system.
85
86. Significance of Discipline management
I. To reduce conflicts and confusions
II. To control and manage human resources in an orderly
manner
III. To achieve organizational goals smoothly
IV. To ensure the employees’ behavior in accordance with
standards, rules and regulations.
86
88. Preventive Discipline
Preventive discipline is action taken to encourage employees
to follow standards and rules, so that infractions do not
occur. The basic objective is to encourage employees’ self
discipline.
88
89. Features of a self disciplined employee
I. Accept rules which happen to face
II. Respect the rules
III. Observes the rules by him/her self willingly
IV. Needs no another to direct to follow rules
V. Keeps on adhering to rules continuously
89
90. Corrective Discipline
Corrective discipline is an action that follows violation of a
rule and it seeks to discourage further violations.
It discourages the repetition of rule violations in future. The
corrective action is a penalty.
90
91. Objectives of a Disciplinary action
I. To discourage future violations of rules
II. To protect the order within the workplace
III. Discourage the repetition of the error by others
IV. To avoid damages to industrial peace and democracy
V. To develop self discipline among employees
VI. To safeguard the organizational policies and rules
91
92. The Hot Stove Rule
This rule states that any disciplinary action must have
features similar to the consequences a person suffer from
touching a hot stove.
92
93. Four characteristics of the Hot Stove Rule
93
Hot Stove Rule
Warning
Immediacy
Consistency
Impersonality
94. Sandwich Model
a. It does not involve a discussion and it is often a one
way communication.
b. Sandwich approach refers to that a corrective comment
is sandwiched between two positive comments in order
to make the corrective comment more acceptable.
c. This can be used to advice educated employees.
94
95. Progressive Discipline
Progressive discipline means that there are stronger
penalties for repeated offences. The purpose is to give an
employee an opportunity for self correction before more
serious penalties are applied.
95
96. Progressive Discipline
96
Number of the
offence made
Penalty
1st time Verbal warning
2nd time Written warning with a record in personal file
3rd time One to three day suspension from work
4th time Suspension for one week or longer
5th time Stop promotion or salary increments
6th time Dismissal
98. Offences
Serious offences are offences which have a greater negative
impact on organizational effectiveness and productivity.
Examples?
Non serious offences are offences which do not have a greater
degree of negative impact on organizational effectiveness and
productivity.
Examples?
98
99. Offences
If non serious offence is repeated for a period of time it
becomes a serious offence.
The harshness of the offence may differ according to the
two factors
i. Nature of the job
ii. Nature of the job environment
99
101. Penalties
1. Minor penalties are for non serious offences
2. Major penalties are given for serious offences.
3. Any penalty given for an offence should be decided by a
board called as disciplinary board.
101
102. Severity of a penalty
1. Nature of the offence
2. Number of previous offences
3. Nature of previous offences
4. Period of service
5. Penalties given by competitors
6. Whether the company rules are clear
7. Whether rules are communicated to all
102
103. Domestic Inquiry / Domestic Investigation
When a person is suspected for a rule violation,
organization will have to conduct in house investigation.
Seven steps are there in the process.
103
104. Domestic Inquiry / Domestic Investigation
104
Preliminary
Investigation
Interdict the
Service
Issue the Charge
Sheet
Receive letter of
explanation
Formal Inquiry
Punishment and
Implementation
