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Organizational activities that provide a pool of applicants for the purpose of filling job openings.Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organizations.
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HRM is a system that focuses on human resources development on one hand and effective management of people on the other hand so that people will enjoy human dignity in their employment.
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Recruitment and selection at ibm pakistanEmily Bronte
Human Resource Management is a vast term. It comprises of planning, recruitment, selection, training, development, discipline, employment legislation, reward and recognition systems, etc.
Recruitment and selection are two of the most important functions of Human Resource Management. Although these are distinct processes, yet they are closely interrelated with each other. Together recruitment and selection forms the core part of the central activities underlying Human Resource Management.
Promotion and reward policy of abhudaya co edited (1)HIMANI SONI
Human Resource Management is concerned about the people in an organization or bank. "The management of man" is a vital and testing work on account of the dynamic idea of the general population. No two individuals/people are same in nature, mental capacities, strategists, opinions, and practices; they contrast broadly additionally as a gathering and are liable to numerous differed impacts. Individuals are responsive, they feel, think and act in this way they can't be worked like a machine or moved and adjusted like format in a room design. They in this way require a careful giving by management personnel.
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Recruitment and Selection
Recruitment :
Recruitment is a process of attracting candidates towards a job in an organization.
Selection :
Selection is a process of hiring right person for a right job at a right time at a right cost.
Selection follows recruitment.
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Hrm – Training
1. HUMAN RESOURCE MANAGEMENT PROJECT
1
TABLE OF CONTENTS
INTRODUCTION 2
ERGO CORPORATION 3
RECRUITMENT AND SELECTION PROCESS 4
SOURCES OF RECRUITMENT, ADV &
DISADVANTAGES
6
PERFORMANCE APPRAISAL PROCESS 11
FEATURES OF PERFORMANCE APPRAISAL 13
ADVANTAGES 14
DISADVANTAGES 15
TECHNIQUES/METHODS OF PERFORMANCE
APPRAISAL
17
BIBLIOGRAPHY 22
2. HUMAN RESOURCE MANAGEMENT PROJECT
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INTRODUCTION
Recruitment and selection of appropriate staff is one of the most important and costly
investments of any organization. Recruiting people who can demonstrate their ability to
make a contribution to the organization is essential to your future success. However, the
recruitment process is costly in terms of time and resources and therefore it is critical
that the process is efficient in enabling recognition of essential competencies. The
business environment is constantly changing, and the way in which organizations
manage recruitment and selection has to match those changes.
Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates for jobs within an organization, either permanent or temporary. Recruitment
can also refer to processes involved in choosing individuals for unpaid positions, such as
voluntary roles or training programs.
Recruitment may be undertaken in-house, by managers, through human resource
generalists and/or recruitment specialists. Alternatively, parts of the process may be
undertaken by public-sector employment agencies, commercial recruitment agencies, or
specialist search consultancies.
The use of internet-based services and computer technologies to support all aspects of
recruitment activity and processes has become widespread.
Performance appraisals are an essential component of employee development. Setting
goals and objectives to aim for will give managers and their staff a unified focus and
targets to aim for. Managers must also learn how to give feedback, both positive and
negative, on a regular and timely basis so that employees can grow and develop.
Performance appraisals involve all these activities.
A performance appraisal (PA), also referred to as a performance review, performance
evaluation, (career) development discussion, or employee appraisal is a method by
which the job performance of an employee is documented and evaluated. Performance
appraisals are a part of career development and consist of regular reviews of employee
performance within organizations.
3. HUMAN RESOURCE MANAGEMENT PROJECT
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PERCEPT LTD INTRODUCTION
Founded in 1984, percept limited an entertainment, media and communications
company is at an enviable leadership position today, with a team of over 1,000 people
and 62 offices in india and the middle east and a capitalized billing of inr 28.25 billion
(fy’15).
Percept companies construct tailor-made content, assets and solutions that deliver in
both local and international markets and services millions of clients and consumers
across the globe.
Percept operates in 3 core business domains:
RECRUITMENT AND SELECTION PROCESS
Recruitment & Selection is the process of choosing the best out of those recruited
candidates as selection is different from recruitment, where recruitment heralds
selection. Recruitment involves recognizing the sources of manpower and thought-
provoking them to apply for jobs in the organizations.
If one thinks they have what it takes to do well at Percept, they promote you to settle
knowledgeable about job opportunities at our corporation. They often recruit graduates
through career now and university recruitment course. They also advertise point through
career websites of our relevant corporation as well as in the course of national and local
newspapers. Opportunities occurs in more than a few areas contain but not restricted to
sales, marketing, manufacturing, human resources, information systems, supply chain,
4. HUMAN RESOURCE MANAGEMENT PROJECT
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procurement, finance and accounting, administrative services, public affairs and
corporate communications.
Percepts recruitment selection process may involve you to complete some or all of the
following steps:
Application form and resume
Cognitive ability tests
Telephone interviews
In-person interviews / site visit
Reference checks
Pre-employment medical (if required)
Offer of employment
They value each and every worker, whose craze and devotion makes them one of the
most important workers in the section they work in. They provide a self-motivated
workplace to the ones selected as they want the candidates to understand that their true
would-be acknowledged and give them the reward of working with a large corporation,
with the mobility of a small business.
At Percept they observe the culture of excellence and appear for like minded people who
share our center values and struggle to make a difference, our widespread workplace and
a varied platform of businesses will provide you with matchless career options and every
chance to outshine.
Whether you are fresh to the business world or an experienced professional, Percept will
value your group spirit while maintain you’re individually. And selection of sites in such
a manner to support the socio-economic growth of communities.
5. HUMAN RESOURCE MANAGEMENT PROJECT
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SOURCES OF RECRUITMENT
Internal sources of Recruitment
1. Present Permanent Employees: Organizations consider the candidates from this
source for higher level of jobs due to availability of most suitable candidates for jobs
relatively or equally to external sources, to meet the trade union demands and due to the
policy of the organization to motivate the present employees.
2. Present temporary/casual Employees: Organizations find this source to fill the
vacancies relatively at the lower level owing to the availability of suitable candidates or
trade union pressures or in order to motivate them on present job.
6. HUMAN RESOURCE MANAGEMENT PROJECT
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3. Retrenched or Retired Employees: Employees retrenched due to lack of work are
given employment by the organization due to obligation, trade union pressure etc.
Sometimes they are re-employed by the organization as a token of their loyalty to the
organization or to postpone some interpersonal conflicts for promotion.
4. Dependents of Deceased, Disabled, retired and present employees: Some
organizations function with a view to developing the commitment and loyalty of not
only the employee but also his family members.
5. Employee Referrals: Present employees are well aware of the qualifications,
attitudes, experience and emotions of their friends and relatives. They are also aware of
the job requirements and organizational culture of their company. As such they can
make preliminary judgment regarding the match between the job and their friends and
relatives.
6. Promotions: Promotion means to give a higher position, status, salary and
responsibility to the employee. So, promoting a suitable candidate from the same
organization can fill the vacancy.
7. Transfers: Transfer means a change in the place of employment without any change
in the position, status, salary and responsibility of the employee. So, transferring a
suitable candidate from the same organisation can fill the vacancy.
8. Internal Advertisements: Here, the vacancy is advertised within the organisation.
The existing employees are asked to apply for the vacancy. So, recruitment is done from
within the organization.
Merits of Internal Sources
The benefits / advantages / merits of using internal sources of recruitment:-
• It is time saving, economical, simple and reliable.
• There is no need of induction training because the candidate already knows
everything about the organisation, the work, the employee, the rules and regulations,
etc.
• It motivates the employees of work hard in order to get higher jobs in the same
7. HUMAN RESOURCE MANAGEMENT PROJECT
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organisation.
• It increases the morale of the employees and it improves the relations in the
organisation.
• It reduce executive turnover.
• It develops loyalty and a sense of responsibility.
Demerits of Internal Sources
The limitations / demerits of using internal sources of recruitment:-
• It prevents new blood from entering the organisation. New blood brings innovative
ideas, fresh thinking and dynamism into the organisation.
• It has limited scope because it is not possible to fill up all types of vacancies from
within the organisation.
• The position of the person who is promoted or transferred will be vacant.
• There may be bias or partiality in promoting or transferring persons from within the
organisation.
• Those who are not promoted will be unhappy.
• The right person may be promoted or transferred only if proper confidential reports of
all employees are maintained. This involves a lot of time, money and energy.
External Sources of Recruitment
1. Campus Recruitment: These candidates are directly recruited by the company from
their college/educational institution. They are inexperienced as far as work experience is
concerned.
2. Private Employment Agencies/Consultants: Public employment agencies or
consultants like ABC Consultants in India perform recruitment functions on behalf of a
client company by charging fees. Line managers are relieved from recruitment functions
and can concentrate on operational activities.
3. Public Employment Exchanges: The Government set up Public Employment
Exchanges in the country to provide information about vacancies to the candidates and
to help the organization in finding out suitable candidates. As per the Employment
8. HUMAN RESOURCE MANAGEMENT PROJECT
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Exchange act 1959, makes it obligatory for public sector and private sector enterprises
inIndia to fill certain types of vacancies through public employment exchanges.
4. Professional Organizations: Professional organizations or associations maintain
complete bio-data of their members and provide the same to various organizations on
requisition. They act as an exchange between their members and recruiting firm.
5. Data Banks: The management can collect the bio-data of the candidates from
different sources like Employment Exchange, Educational Training Institutes,
candidates etc and feed them in the computer. It will become another source and the co
can get the particulars as and when required.
6. Casual Applicants: Depending on the image of the organization its prompt response
participation of the organization in the local activities, level of unemployment,
candidates apply casually for jobs through mail or handover the application in the
Personnel dept. This would be a suitable source for temporary and lower level jobs.
7. Similar Organizations: Generally experienced candidates are available in
organizations producing similar products or are engaged in similar business. The
Management can get potential candidates from this source.
8.Trade Unions: Generally unemployed or underemployed persons or employees
seeking change in employment put a word to the trade union leaders with a view to
getting suitable employment due to latter rapport with the management.
9. Walk In: The busy organization and rapid changing companies do not find time to
perform various functions of recruitment. Therefore they advise the potential candidates
to attend for an interview directly and without a prior application on a specified date,
time and at a specified place.
10. Consult In: The busy and dynamic companies encourage the potential job seekers to
approach them personally and consult them regarding the jobs. The companies select the
suitable candidates and advise the company regarding the filling up of the positions.
Head-hunters are also called search consultants.
9. HUMAN RESOURCE MANAGEMENT PROJECT
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11. Body Shopping: Professional organizations and the hi-tech training develop the
pool of human resource for the possible employment. The prospective employers
contact these organizations to recruit the candidates. Otherwise the organizations
themselves approach the prospective employers to place their human resources. These
professional and training institutions are called body shoppers and these activities are
known as body shopping. The body shopping is used mostly for computer professionals.
Body shopping is also known as employee leasing activity.
12. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take
over help in getting human resources. In addition the companies do also alliances in
sharing their human resource on adhoc basis.
13.E-recruitment: The technological revolution in telecommunications helped the
organizations to use internet as a source of recruitment. Organizations advertise the job
vacancies through the world wide web (www). The job seekers send their applications
through e-mail using the Internet.
14. Outsourcing: Some organizations recently started developing human resource pool
by employing the candidates for them. These organizations do not utilize the human
resources; instead they supply HRs to various companies based on their needs on
temporary or ad-hoc basis.
Advantages of External Sources
The benefits / merits / advantages of using external sources of recruitment:-
• It encourages young blood with new ideas to enter the organisation.
• It offers wide scope for selection. This is because a large number of suitable
candidates will come for the selection process.
• There are less chances of bias or partiality.
• Here there is no need to maintain confidential records.
Limitations of External Sources
The demerits / limitations of using external sources of recruitment:-
• It is very costly. This is because advertisements, test, medical examination etc., has to
10. HUMAN RESOURCE MANAGEMENT PROJECT
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be conducted.
• It is very time consuming. This is because the selection process is very lengthy.
• It may not develop loyalty among the existing managers.
• The existing managers may leave the organisation if outsiders are given higher post.
PERFORMANCE APPRAISAL PROCESS
Employee benefits typically refers to retirement plans, health life insurance, life
insurance, disability insurance, vacation, employee stock ownership plans etc. Benefits
are increasingly expensive for business to provide employees, so the range and options
of benefits are changing rapidly.
Compensation includes topics in regard to wage and/or salary programs and structures,
for example, salary ranges for job descriptions, merit based programs, bonus based
programs, commission based programs etc.
Thought, not ranked important, compensation is an important factor in job quality. It is a
deciding factor for people when they consider a job.
Employee compensation and benefits are basically divided into four categories
1. Guaranteed Pay - monetary (cash) reward paid by an employer to an employee on
11. HUMAN RESOURCE MANAGEMENT PROJECT
11
employee/employer relations. The most common form of guaranteed pay is the basic
salary
2.Variable pay - monetary (cash) reward paid by an employer to an employee that is
contingent ondiscretion, performance or results achieved. The most common forms are
bonuses and sales incentives.
3.Benefits -Programs and employer use to supplement employees compensation, such as
paid time off, medical insurance, company car and more
4. Equity based compensation - A plan using the employers share as compensation, the
most common examples are stock options Percept gives all these compensations and
benefits, a good guaranteed pay according to the level, type and
the degree of work associated with the job, an effective system of performance
management and various share options.
The companys compensation package is competitively aligned to the best in the industry
and is appropriately balanced between providing cash compensation and benefits,
including medical and retirement benefits. The company’s compensation plan is clearly
linked with the performance and potential of the employee. The annual salary rewards
are linked to employee performance. An Employee Share Option Scheme operated by
the Employees Trust offers new employees the opportunity to acquire ownership in the
Company. The company also considers the health and safety of its employees more
important than protection and enhancement of its own facilities.
The reward system is strictly performance driven; every opportunity is used to reinforce
the culture of reward for performance. To promote and strengthen a keenly competitive
environment within the organization for enhanced quality and productivity, an elaborate
performance assessment and employee development system has been institutionalized
which by design forces objectivity in employee appraisal
against given dimensions of performance evaluation.
The Company's whole compensation package is competitively associated to the best in
the manufacturing and is suitably reasonable between providing cash compensation and
benefits, including, medical and retirement benefits. The annual income rewards are
linked to employee presentation.
An Employee contribute to alternative system operated by the Employees expectation
offers new employees the opportunity to obtain possession in the corporation.
Compensation Organization and Executive Development Committee (COED):
12. HUMAN RESOURCE MANAGEMENT PROJECT
12
The reward Organization and Executive Development Committee define a new position
whenever it is required. When a department wants a new position to be recognized it
goes to COED. The COED then asks for the reasons for the new location. If the COED
accepts the way of thinking, it gives its agreement to the responsibility and the
announcement is position in the newspapers.
FEATURES OF PERFORMANCE APPRAISAL
A performance appraisal is a systematic and periodic process that assesses an individual
employee’s job performance and productivity in relation to certain pre-established
criteria and organizational objectives. Other aspects of individual employees are
considered as well, such as organizational citizenship behavior, accomplishments,
potential for future improvement, strengths and weaknesses, etc.
To collect PA data, there are three main methods: objective production, personnel, and
judgmental evaluation. Judgmental evaluations are the most commonly used with a large
variety of evaluation methods. Historically, PA has been conducted annually (long-cycle
appraisals); however, many companies are moving towards shorter cycles (every six
months, every quarter), and some have been moving into short-cycle (weekly, bi-
weekly) PA . The interview could function as “providing feedback to employees,
13. HUMAN RESOURCE MANAGEMENT PROJECT
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counseling and developing employees, and conveying and discussing compensation, job
status, or disciplinary decisions”. PA is often included in performance management
systems. PA helps the subordinate answer two key questions: first, "What are your
expectations of me?" second, "How am I doing to meet your expectations?"
Performance management systems are employed “to manage and align" all of an
organization's resources in order to achieve highest possible performance.“How
performance is managed in an organization determines to a large extent the success or
failure of the organization. Therefore, improving PA for everyone should be among the
highest priorities of contemporary” organizations.
Some applications of PA are compensation, performance improvement, promotions,
termination, test validation, and more. While there are many potential benefits of PA,
there are also some potential drawbacks. For example, PA can help facilitate
management-employee communication; however, PA may result in legal issues if not
executed appropriately, as many employees tend to be unsatisfied with the PA process.
PAs created in and determined as useful in the United States are not necessarily able to
be transferable cross-culturally.
ADVANTAGES
There are a number of potential benefits of organizational performance management
conducting formal performance appraisals (PAs). There has been a general consensus in
the belief that PAs lead to positive implications of organizations. Furthermore, PAs can
benefit an organization’s effectiveness. One way is PAs can often lead to giving
individual workers feedback about their job performance. From this may spawn several
potential benefits such as the individual workers becoming more productive.
Other potential benefits include:
Facilitation of communication: communication in organizations is considered an
essential function of worker motivation. It has been proposed that feedback from
PAs aid in minimizing employees’ perceptions of uncertainty. Fundamentally,
feedback and management-employee communication can serve as a guide in job
14. HUMAN RESOURCE MANAGEMENT PROJECT
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performance.
Enhancement of employee focus through promoting trust: behaviors, thoughts,
and/or issues may distract employees from their work, and trust issues may be
among these distracting factors. Such factors that consume psychological energy can
lower job performance and cause workers to lose sight of organizational goals.
Properly constructed and utilized PAs have the ability to lower distracting factors
and encourage trust within the organization.
Goal setting and desired performance reinforcement: organizations find it
efficient to match individual worker’s goals and performance with organizational
goals. PAs provide room for discussion in the collaboration of these individual and
organizational goals. Collaboration can also be advantageous by resulting in
employee acceptance and satisfaction of appraisal results.
Performance improvement: well constructed PAs can be valuable tools for
communication with employees as pertaining to how their job performance stands
with organizational expectations. “At the organizational level, numerous studies
have reported positive relationships between human resource management (HRM)
practices" and performance improvement at both the individual and organizational
levels.
Determination of training needs: “Employee training and development are crucial
components in helping an organization achieve strategic initiatives”. It has been
argued that for PAs to truly be effective, post-appraisal opportunities for training and
development in problem areas, as determined by the appraisal, must be offered. PAs
can especially be instrumental for identifying training needs of new employees.
Finally, PAs can help in the establishment and supervision of employees’ career
goals.
DISADVANTAGES
Despite all the potential advantages of formal performance appraisals (PAs), there are
also potential drawbacks. It has been noted that determining the relationship between
individual job performance and organizational performance can be a difficult task.
Generally, there are two overarching problems from which several complications spawn.
One of the problems with formal PAs is there can be detrimental effects to the
organization(s) involved if the appraisals are not used appropriately. The second
15. HUMAN RESOURCE MANAGEMENT PROJECT
15
problem with formal PAs is they can be ineffective if the PA system does not
correspond with the organizational culture and system.
Complications stemming from these issues are:
Detrimental to quality improvement: it has been proposed that the use of PA
systems in organizations adversely affect organizations’ pursuits of quality
performance. It is believed by some scholars and practitioners that the use of PAs is
more than unnecessary if there is total quality management.
Subjective evaluations: Traditional performance appraisals are often based upon a
manager's or supervisor's perceptions of an employee's performance and employees
are evaluated subjectively rather than objectively. Therefore the review may be
influenced by many non-performance factors such as employee 'likeability', personal
prejudices, ease of management, and/or previous mistakes or successes. Reviews
should instead be based on data-supported, measurable behaviors and results within
the performers control.
Negative perceptions: “Quite often, individuals have negative perceptions of PAs”.
Receiving and/or the anticipation of receiving a PA can be uncomfortable and
distressful and potentially cause “tension between supervisors and subordinates”. If
the person being appraised does not trust their employer, appraiser or believe that
they will benefit from the process it may become a "tick box" exercise.
Errors: Performance appraisals should provide accurate and relevant ratings of an
employee’s performance as compared to pre-established criteria/goals (i.e.
organizational expectations). Nevertheless, supervisors will sometimes rate
employees more favorably than that of their true performance in order to please the
employees and avoid conflict. “Inflated ratings are a common malady associated
with formal" PA.
Legal issues: when PAs are not carried out appropriately, legal issues could result
that place the organization at risk. PAs are used in organizational disciplinary
programs as well as for promotional decisions within the organization. The improper
application and utilization of PAs can affect employees negatively and lead to legal
action against the organization.
Performance goals: performance goals and PA systems are often used in
association. Negative outcomes concerning the organizations can result when goals
are overly challenging or overemphasized to the extent of affecting ethics, legal
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requirements, or quality. Moreover, challenging performance goals can impede an
employees’ abilities to acquire necessary knowledge and skills. Especially in the
early stages of training, it would be more beneficial to instruct employees on
outcome goals than on performance goals.
Derail merit pay or performance-based pay: some researchers contend that the
deficit in merit pay and performance-based pay is linked to the fundamental issues
stemming from PA systems.
TECHNIQUES / METHODS OF PERFORMANCE
APPRAISALS
Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for some
organizations only. None should be dismissed or accepted as appropriate except as they
relate to the particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
• Past Oriented Methods
• Future Oriented Methods
Past Oriented Methods
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1. Rating Scales: Rating scales consists of several numerical scales representing job
related performance criterions such as dependability, initiative, output, attendance,
attitude etc. Each scales ranges from excellent to poor. The total numerical scores are
computed and final conclusions are derived. Advantages – Adaptability, easy to use, low
cost, every type of job can be evaluated, large number of employees covered, no formal
training required. Disadvantages – Rater’s biases
2. Checklist: Under this method, checklist of statements of traits of employee in the
form of Yes or No based questions is prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation. Advantages – economy, ease of
administration, limited training required, standardization. Disadvantages – Raters biases,
use of improper weighs by HR, does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false. The rater is
forced to make a choice. HR department does actual assessment. Advantages – Absence
of personal biases because of forced choice. Disadvantages – Statements may be
wrongly framed.
4. Forced Distribution Method: here employees are clustered around a high point on
a rating scale. Rater is compelled to distribute the employees on all points on the scale.
It is assumed that the performance is conformed to normal distribution. Advantages –
Eliminates Disadvantages – Assumption of normal distribution, unrealistic, errors of
central tendency.
5. Critical Incidents Method: The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance. Supervisors as and when
they occur record such incidents. Advantages – Evaluations are based on actual job
behaviors, ratings are supported by descriptions, feedback is easy, reduces recency
biases, chances of subordinate improvement are high. Disadvantages – Negative
incidents can be prioritized, forgetting incidents, overly close supervision; feedback may
be too much and may appear to be punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and ineffective
behaviors determine the points. They are said to be behaviorally anchored. The rater is
supposed to say, which behavior describes the employee performance. Advantages –
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helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most
rating techniques.
7. Field ReviewMethod: This is an appraisal done by someone outside employees’
own department usually from corporate or HR department. Advantages – Useful for
managerial level promotions, when comparable information is needed, Disadvantages –
Outsider is generally not familiar with employees work environment, Observation of
actual behaviors not possible.
8. Performance Tests & Observations: This is based on the test of knowledge or
skills. The tests may be written or an actual presentation of skills. Tests must be reliable
and validated to be useful. Advantage – Tests may be apt to measure potential more than
actual performance. Disadvantages – Tests may suffer if costs of test development or
administration are high.
9. Confidential Records: Mostly used by government departments, however its
application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR) and may record ratings with respect to following items;
attendance, self expression, team work, leadership, initiative, technical ability, reasoning
ability, originality and resourcefulness etc. The system is highly secretive and
confidential. Feedback to the assessee is given only in case of an adverse entry.
Disadvantage is that it is highly subjective and ratings can be manipulated because the
evaluations are linked to HR actions like promotions etc.
10. Essay Method: In this method the rater writes down the employee description in
detail within a number of broad categories like, overall impression of performance,
promoteability of employee, existing capabilities and qualifications of performing jobs,
strengths and weaknesses and training needs of the employee. Advantage – It is
extremely useful in filing information gaps about the employees that often occur in a
better-structured checklist. Disadvantages – It its highly dependent upon the writing
skills of rater and most of them are not good writers. They may get confused success
depends on the memory power of raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary
returns yields to his or her organization. Cost to keep employee, and benefit the
organization derives is ascertained. Hence it is more dependent upon cost and benefit
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analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers.
The usual techniques used may be ranking methods and paired comparison method.
Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to
administer and explanation.
Paired Comparison Methods: In this method each employee is rated with another
employee in the form of pairs. The number of comparisons may be calculated with the
help of a formula as under.
N x (N-1) / 2
Future Oriented Methods
1. Management By Objectives: It means management by objectives and the
performance is rated against the achievement of objectives stated by the management.
MBO process goes as under.
• Establish goals and desired outcomes for each subordinate
• Setting performance standards
• Comparison of actual goals with goals attained by the employee
• Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting
short-term goals rather than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess employees
potential for future performance rather than the past one. It is done in the form of in-
depth interviews, psychological tests, and discussion with supervisors and review of
other evaluations. It is more focused on employees emotional, intellectual, and
motivational and other personal characteristics affecting his performance. This approach
is slow and costly and may be useful for bright young members who may have
considerable potential. However quality of these appraisals largely depend upon the
skills of psychologists who perform the evaluation.
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3. Assessment Centers: This technique was first developed in USA and UK in 1943.
An assessment center is a central location where managers may come together to have
their participation in job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select exercises or work samples.
Assessees are requested to participate in in-basket exercises, work groups, computer
simulations, role playing and other similar activities which require same attributes for
successful performance in actual job. The characteristics assessed in assessment center
can be assertiveness, persuasive ability, communicating ability, planning and
organizational ability, self confidence, resistance to stress, energy level, decision
making, sensitivity to feelings, administrative ability, creativity and mental alertness etc.
Disadvantages – Costs of employees traveling and lodging, psychologists, ratings
strongly influenced by assessee’s inter-personal skills. Solid performers may feel
suffocated in simulated situations. Those who are not selected for this also may get
affected.
Advantages – well-conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. Also reliability, content
validity and predictive ability are said to be high in assessment centers. The tests also
make sure that the wrong people are not hired or promoted. Finally it clearly defines the
criteria for selection and promotion.
4. 360-Degree Feedback: It is a technique which is systematic collection of
performance data on an individual group, derived from a number of stakeholders like
immediate supervisors, team members, customers, peers and self. In fact anyone who
has useful information on how an employee does a job may be one of the appraisers.
This technique is highly useful in terms of broader perspective, greater self-development
and multi-source feedback is useful. 360-degree appraisals are useful to measure inter-
personal skills, customer satisfaction and team building skills. However on the negative
side, receiving feedback from multiple sources can be intimidating, threatening etc.
Multiple raters may be less adept at providing balanced and objective feedback.
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BIBLIOGRAPHY
Internet websites like:
http://www.Percept.com
http://www.cpdbd.com/recruitment-selection-practices-performance-appraisal-system-
of-hr.html
http://en.wikipedia.org/wiki/Performance_appraisal
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http://www.nadelgroup.com/docs/02_nadel_perfEnhancement.pdf
http://www.shrm.org/education/hreducation/documents/instructor's%20manual_ja-
based%20perf%20appraisal_final.pdf