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Meaning
JOBANALYSIS
The process of determiningthenature andcontents ofaparticularjob is what
is known as jobanalysis. Such an analysis will bring out the following:
) The tasks to be performed in agiven job
(i) The conditionsunder which the job has to be performed and
(iii) The skillsand capabilities required to perform the job.
AdvantagesofJob Analysis
The merits ofjob analysis are given below:
1. Ithelps the employer to select the right man for the right job. It helps to
identify the skills and abilities required for a particularjob, For example,
even ifa candidate is a postgraduate, he cannot be appointed as asales
representative, ifhe lacks communication skills.
2. It helps inthe correct placement of employees. For example, If certain
persons have been selected for clerical posts, each one of them can be
given work in accordance with his aptitude, skill and soon.
Job analysis is useful in determining the training needs of an employee. If
the skills andcapabilities of anemployee are below therequiredlevel, he
must be given training to improve the same.
4. Job analysis is helpfulin job evaluation. The worth of ajob cannot be
determined unless its content is known. Job analysis reveals the skills
to
be
.
bound
to
have
higher
j
o
b
atisfaction.
employee
skills.
An
employee
who
is
abl
e
to
perform
h
i
s
j
o
b
effectively
is
employees.
This
is
possible
as
t
h
e
j
o
b
requirements
ar
e
matched
wi
t
h
9.
Job
analysis
further
helps
to
maximise
j
o
b
satisfaction
among
t
h
e
same.
assa
does
not
have
t
h
e
their
existing
positions.
e
svs
t
o
um
onist
t
h
e
sake
of
f
such
jobs
they
may
either
be
promoted
or
transferred
from
employees,
who
have
t
h
e
potentials
to
perform
certain
difficult
jobs.
For
difficult
f
o
r
t
h
e
management
to
identify
those,
from
among
t
h
e
existing
promotion
and
transfer.
Once
t
h
e
content
of
t
h
e
j
o
b
is
known,
it
is
not
7.
Job
analysis
also
helps
t
h
e
management
in
matters
concerning
employee
required
f
o
r
doing
each
j
o
b
can
also
be
determined.dcD
bs
ae
steps
may
be
taken
to
avoid
unnecessary
movements.
The
standard
time
the
same.
possible
to
ascertain
how
f
a
r
an
employee
has
successfully
accomplished
ofemployees.
As
t
h
e
tasks
involved
in
every
j
o
b
ar
e
already
known,
it
is
5.
It
provides
a
suitable
basis
f
o
r
an
objective
appraisal
of
t
h
e
performance
wage
fora
particular
job.d
otanoniv
lateodtasson
ob
details,
it
is
possible
f
o
r
t
h
e
employer
to
determine
t
h
e
correct
salary
or
required
and
t
h
e
hazards
involved
2.
3
Human
Resource
Management
ent,
tes
may
not
arise
een
t
h
e
kers
and
t
h
e
ent
10.
As
ndards
of
output
can
be
gically
rmined
in
t
u
ne
with
t
h
e
j
o
b
potentials
f
o
r
a
particular
job,
will
not
apply
f
o
r
t
h
e
judge
hi
s
own
capabilities
f
o
r
t
h
e
job.
An
applicant,
who
thinks
that
he
Once
t
h
e
content
of
a
j
o
b
is
known,
it
is
possible
f
o
r
any
applicant
to
t
h
e
movements
of
workers
during
working
hours
to
different
places
and
ledesign
short-cut
methods.
A
motion
study
may
be
conducted
to
study
is
possible
to
identify
certain
unnecessary
or
repetitive
operations
and
6.
It
gives
scope
f
o
r
work
simplification.
Once
a
j
o
b
is
thoroughly
studied,
it
in
performing
each
job.
With
these
Methods ofJobEvaluation
Following are some of the methods used for the purpose ofjob evaluation:
) Ranking Method
(1) Classification Method
(ü) Point Method and
(iv) Factor Comparison Method
Let us discuss these methods now.
Ranking Method
pay.
Under this method the variousjobs in an enterprise will be ranked in the order
of their importance, responsibilities and duties involved for the purpose of
determining the appropriate remuneration for the employees. It is however
necessary to ensure that the jobs ranked are similar in nature. For example, the
job of ajunior clerk may be compared with that ofasenior clerk. Likewise, thejob
ofasalesman may be compared with that ofasales officer. Only then alogical
decision can be made on the suitable rate of wages.
The remuneration payableto the sales officer, naturally, has to be more than
that payable to the salesman. This is because, the salesman has to account for
his performancealone. Onthe otherhand, the salesofficer isaccountable for the
performance ofeach ofthe salesmen working underhim.
This method, however, is unsuitable if the jobs to be compared are totally
unrelated or dissimilar. For example, the job ofamachine worker andthatofa
departmental manager cannot be ranked. Amachine worker can only be ranked
along withafitter, aturner, aplumberoran electrician.
Classification Method
In this case, the various jobs in an organisation are classified under certain
categories, In banks, for example, there are clerks, probationary officers and
Managers, The starting scale of pay of allclerks, who may be doingdifferent
jobs, is the same.
The teachers in Government and aided colleges are classified into three
Categories -Lecturers, Senior-Scale Lecturers and Selection Grade Lecturers.
Ihe starting scale ofpay ofall lecturers is the same. Likewise, the scale of pay of
all senior scale lecturers is the same. Ofcourse, depending uponthelength of
erVice andqualificationsofindividual lecturersthere may becertain differences
inpay.
2.7
InGovernmentservice, the employeesare classified into classone,classtue
class three and class four. Within each there are employees doing different kind
ofjobs.The job requirements of the variousemployeesin aparticular
category,
say, class four, are the same.
Point Method
In the case of the point method, the requirements of each job in terms of
educational qualification,experience desired, physical requirements, dutiesand
responsibilities involvedare first identified. The requirement regarding
educationalqualificationmaybefurtherdivided into plus-twoqualification,basic
degree, PGdegree, professionaldegree or diploma and so on. In thismanner,the
uirementsregardingexperience,skill,physical fitnessetc.,are alsosub-divided
After sub-division of the requirements, points are assigned. For example,
professional degree may receive 50 points, PG degree 40 points, UG degree 30
points and so on. The total points given for a job will determine its place or
position in the job structure.
FactorComparison Method008
) Clerk
This method is based on the point method. The maximum points for the
factors involved are determined by taking into account the key jobs in the
organisation. This provides the basis for determining the points for the other
jobs.This may be explainedwithanexample.Letus considerthe followingthree
officejobs:
() Typist
(iü) Computer-operator
Requirements Maximum
Educational
By usingthe factor comparisonmethod, the total points for the above three
jobs may be determinedasshownbelow:
Qualification
Skill
Experience
Occupational
nogge
Hazards
Total
Points
40
30
15
Human Resource Management
100
Clerk
20
15
45
Typist
20
15
o
30i 35
15
75
Computer
Operator
25
15
15
85
JobAnalysis and Evaluation
Ifthe employer decides to pay abasic payofRs. 2,000 per month plus Rs. 10
nerpoint for each ofthe above categories ofemployees, the total pay per month
will beas follows:
(a) Clerk
(b) Typist
:
:
(c) ComputerOperator:
Rs.2,000 +Rs.450-Rs.2,450
2.8
Rs.2,000+Rs.750 =Rs.2,750
Rs.2,000+ Rs.850 =Rs.2,850
PerformanceAppraisal
Advantages Appraisal
Thebenefitsof performance appraisal may beexplained as follows:
Ithelpsto ensure that the right man has been inducted into the
9,2
anisation. Although every individual would have been thoroughly
oftestand interview.
examined before placement,itis necessary to know whether the person
doeshis
2 Performance appraisal helps to know whether the training given to an
employee has been really effective. If appraisal reveals that there is
improvementinperformanceaftertrainingitshouldmeanthatthetraining
iseffective.
1 The various incentives provided to an employee may be determined in
accordance withhisperformanceevaluationreport. Increment,commission
and career advancement benefits may be fixed based on the employees
performance and progress.
Performance appraisal also provides abasis for promotion, transfer or
evenremoval ofanemployeefrom service. Anemployeewho hasshown
goodprogress may be considered for promotion to ahigher level job. He
may be transferred to some other section or branch if his performance in
the present job is not up to the mark. An employee who is found to be
highly inefficient may be even removed from service.
5. Itmotivates efficient employees to perform even better as they knowthat
ifthey perform well they willbe suitably rewarded. On the other hand, it
cautions the less efficient employees by indicatingthatif theirperformance
1S going to be ofthe same level they may even lose their jobs.
Feriomanceappraisal isbasicallynecessarytoenablethe employee himselt
lo know where he stands in relation to the other employeesofthe
Organisation. This willinduce him to put in more efforts ifhe finds thathe
1S below his colleagues in performance.
growth.
1. An emmployee whose performance is belowthe expected level may be
given the necessary training to do better. This gives him a sense of
satisfaction. Such asatisfied employee does notcomplain about anyone
or
anything. This improves human relations in the workplace. An
atmosphere of cordiality prevailsin the organisation thatis vital for its
8. The performance appraisal records serve as evidence of an employee's
progress. The management can preserve such records to defend itself
against possible charges of favouritism or discrimination.
sof Perfor
swork withthe sameinterest and aptitude he displayed at the time
9.3
MethodsofPerformanceAppraisal
The following arethe important methods of appraising the performance
employees:
1. Ranking method
2. Graphic scale rating method
3. Forced choice method
4. Essay appraisal method
5. Paired comparisonmethod
6. Field review method
7. Critical incidents method
Let us nowdiscuss these different methods.
Ranking Method
Name ofthe employee
Thisisaconventionalmethod of appraisal.Underthismethod,theemployes
in a group are given ranks by the superior according to their individual
perfomance. Themethodresemblestheonefollowed inschoolsinpreparingthe
progress reports of the students. The best employee gets the first rank, the
second best the second rank and so on.
Rank
Shyam
Human Resource Managemen
oeel oroledbe
4
Graphic ScaleRatingMethod
Mohan Sundar
3
Figure 9.1l Ranking Method
2
Rajiv
Anumber offactors like attitude, aptitude, behaviour, honesty,commitnent
etc., willhave to be considered in making an assessment of an employee
performance. The superior may make asubjective assessment rather thanat
objective measurementof theemployee'sprogress. For a
subjectiveassessment
the ranking method may not be recommended.
Thismethod ofevaluation of employeesis widely used in enterprises. The
important qualities to be assessed are determined first. The extent of fulfilento
each such quality by an employee isthen tick marked.
Performance Appraisal
Name ofthe Employee ,..R. Mohan.
Designation ......Mechanic.
Nature of work......Repair Service..
Qualities
Knowledge ofwork
Quality of work
Quantum ofwork done
Extent ofco-operation
Initiative
Excellent Very Good
Figure 9.2 Graphic RatingScale
Good
ForcedChoiceMethod
Imay rate all their subordinates as 'very good.
Average
This method, like the ranking method, is simple to use. But the drawback is
that sometimes the evaluator may tend to give an employee the same rating in
Tespectofall his traits. For example, ifhehas given 'Excellent' for Quality of work,
he may give the same rating even for behaviour, initiative, jobknowledge etc.
9.4
Someevaluatorsmay, in orderto be neutral or non-committal, rate majority of
isillustratedbelow:
Poor
the
employees as just 'average'. Onthe other hand, there are also superiors who
In this case, the assessor has to assess his subordinates based on certain
alements given to him. These statements may indicate the positive as well as
the negative qualities of an employee. The evaluator has to select those
statements that describethe employee, who is assessed, inthebest manner. This
9.5
Positive Qualities
1. Very knowledgeable
2. Meticulous in planning
3. Very good inexecution
4. Commited to work
5. Sincere
6. Dependable
7. Possessgood communicationskills
8. Loyal
9. Time conscious
10. Co-operative
Essay AppraisalMethod
methods discussed already.
Human Resource
1. Shirks duties
2. Undependable
Negative Qualities
3. Quarrelsome
4. Non-co-operative
6.
5. Poor in planning
Paired Comparison Method
other employee ofthe group.
Lacksthe skill to communicate
7. Lacks initiative
8. Lethargic
The evaluator will choose from the above statements those that describe the
subordinate in the most appropriatemanner. But the drawback ofthis methodis
that the superior has to select only from the given statements. He may find the
statements either inadequate or unsuitable to bring out the actual traits of the
individual.
9. Irregular
10. Irritable nature
As the very name indicatesthis approachis descriptivein nature. The assessOr
in this case has to write in detail about each of the subordinates whose
Management
performance he assesses. This method helps to overcomethe drawbackss ofthe
reliable as it is in the evaluator's owm write-up.
A
superior may manage 5or 6
subordinates and knows the traits of eacn o
them. It willnot, therefore, be difficult for him towrite about their performanc
and progress. The assessment made usingthe essay method is boundto be more
3Butthe essay method is not free fromlimitations.Itis
consideredIto be atime-
cönsuming method. Thesuccess ofthe method depends mainly onthe capacity
of the superior to write effectively about his subordingtes
Inthis case a subordinatei
in a group is compared with the otherr members. For
example, if A, B, Cand Dare the
subordinates working under S, A may be
compared with B,C and D
in respect ofjob knowledge,initiative, extent of co-
operation and so on. In this manner every employee is Compared with every
PerformanceAppraisal.
Pairedcomparison methodis generally consideredto be a complicated one.
Ttistime-consumingaswell.
FieldReviewMethod
This is an altogether different approach to performance appraisal. In this
case,aninterviewer
workingunderhim.
thesupervisor and on the performance of the subordinates
from the personneldepartmentofthe
and gather information
The supervisor may also be asked to suggest measures to improve the
suhordinates performance. The interviewer records the views ofthe supervisor
carefully and the same will be preserved for future reference or guidance.
The success ofthis method, however, depends much on the capability ofthe
interviewer toget the relevant information from each supervisor and the
wilingness ofthe supervisor to disclose correct information.
Critical Incidents Method
This is yet another different method. The evaluator inthis case will be asked
to record the behaviour ofdifferent subordinates when acritical incident takes
placeinthe workplace. Ratingwill bedoneba_edontheextent of correctnessof
the subordinate's behaviour.
Name of the worker
P
Let us assume that P, Q,R, SandTarefactory workers. Letus further assume
that Tis involved in an accidentwhile at workand recordthe reactions ofP, Q,R
and Sand the scores they would get for the same.
R
employees.
S
9.6
would meet
Reaction
Ran away from the place.
Moreover,
Informed the supervisor.
Gave T the necessary first aid.
Took Tto the nearest hospital.
Score
0.
Thescores givenare in accordance withthe extent of corectness of behaviour
individual as judgement, alertness,initiative,loyalty etc.
of eachemployee. This approach is suitableto measure such qualities of an
The drawback ofthis methodis that criticalincidentsdonottakeplaceinthe
workplace often. As aresult,itis not possibleto makefrequentappraisal ofthe
whetheranincidentiscriticalornotisdifticulttojudge.
Steps to makelPerformance Appraisal effective
De following measures may be adopted to make performance apprzisal
effective:
1There must be consensus among the raters on the criteria for appraisal of
the subordinates' performance. Otherwise, each superior will adopt his
oWn criterion to assess performance and this will result in lack of
uniformity. Forexample,ifone superiorjudgesperformancebythequality
ofwork and another gives weightage for the quantum of work done the
assessment will not be correct.
9.9 Human Resource Management
2. The mnethod of appraisal onceselected should be continuously
followed.
3. The
needs to be
This is necessary to ensure consistency in assessment.
manager's capacity to judge the subordinates also
examined. The General Manager ofthe enterprise may undertake this
task.
4. There should be no discrimination onthe basisof religion,caste,:sex and
such other considerations. The job performance of the subordinate and
related issues alone must get the focus in appraisal.
5. Appraisal of subordinates' performance must be undertaken at regular
intervals. Only then the manager will be able to know whether there is any
change in performance.
6. The results ofappraisal must be communicated to the subordinate at the
righttime. Onlythenthe subordinatewill be able to make effortsto perfom
better ifthe results indicate that his performance is just average.
7. It willnot be enough if the superior only conveys the results to the
subordinates. He must also tell them the ways and means to improvetheir
performance.
8. Suitable incentivesmustbe givento the subordinateswho have performed
really well. Such incentivesmay be in the form ofincrement,bonus, greater
authority etc. Ifall the subordinatesare treated alike, irrespectiveoftheir
performance, there will not be any motivationfor the efficient employes
toput in efforts.
9. Performance appraisal is mneaningful only ifcertain important decisions
like employee promotion,transferetc., are linkedto theirjobperformane.
10. For the appraisal of employeesto be successful, it is important that theid
is trust and confidence between the superiors and subordinates.
9.7 Human Resource Managermen
MBO method(MB0-MANAGEMENTBY OBJECTIVES)
the objectives desiredto be achieved by the subordinate intune with the overall
It is atechnique by which the superior andthe suubordinate jointly
identify
a
resultsexpected. The concept ofMBO was developed by Peter Drucker
The following are the stages involved in the process of MBO:
1. Establishment of Objectives -Oncethe basic o
objectivessof the enterprise
have been established, objectives of individual departments will
haveto
be set. Thetargets ofthe subordinates ofievery department will
then be
fixed mutually betweenthesubordinate concerned and his superior. This
will be done after acertain number of meetings between thetwo. While
settingthe targets of subordinates, it will be ensured thatthey are intune
with the enterprise targets. In other words, there shall be perfect on
ordination between the targets of the subordinates and those of the
enterprise.The subordinates shall express their expected tasks in clear
measurable terms.
2. Periodical Review- Theperformance ofthesubordinatesshall besubject
to periodic review. The superiors shall provide appropriate directionfir
the effective performance of thetask undertaken. The targets may alsobe
revised if it is found that the subordinates are not able to proceed in the
right direction.
3. Final Review - In the final meeting between the superior and the
subordinate, toreview the latter's performance, if it is found that he
subordinate has successfully accomplished his tasks, he gets not only
appreciation but also reward in the form ofpromotion or such other benefit
Ifthe performanceofthe subordinate is not satisfactory, he may begiven
additional training to carry out his tasks better in the next period.
Advantages of MBO
1. Itpromotes better communication relationship between the superior anu
his subordinates.
2. It givesthesubordinate an opportunityto fix his owntargetsinconsultation
with his superior. This he will do by considering his own potentials.
subordinate knows precisely what he is expected todo.
3. As the subordinates have the freedom to determine their own targe
they feelmotivated and also show keen interest in their attainment.
4. The periodic review of the subordinate's performance
know whether he is proceeding in the right direction.
enables himt0
Performance Appraisal
Disadvantages oflMBO biaossbloloe ootoloeien
1. Thesuperiorand his subordinate may have to meet several times forthe
sake of settingthe objectives mutually.
9.8
Periodicreview of thesubordinate'sperformanceinvolves lot oftime and
alsopaperwork.
3. MBO has not much to do with the lower levels of management.

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HRM Unit2.pdf for third year bachelor of commerce

  • 1. Meaning JOBANALYSIS The process of determiningthenature andcontents ofaparticularjob is what is known as jobanalysis. Such an analysis will bring out the following: ) The tasks to be performed in agiven job (i) The conditionsunder which the job has to be performed and (iii) The skillsand capabilities required to perform the job.
  • 2. AdvantagesofJob Analysis The merits ofjob analysis are given below: 1. Ithelps the employer to select the right man for the right job. It helps to identify the skills and abilities required for a particularjob, For example, even ifa candidate is a postgraduate, he cannot be appointed as asales representative, ifhe lacks communication skills. 2. It helps inthe correct placement of employees. For example, If certain persons have been selected for clerical posts, each one of them can be given work in accordance with his aptitude, skill and soon. Job analysis is useful in determining the training needs of an employee. If the skills andcapabilities of anemployee are below therequiredlevel, he must be given training to improve the same. 4. Job analysis is helpfulin job evaluation. The worth of ajob cannot be determined unless its content is known. Job analysis reveals the skills
  • 3. to be . bound to have higher j o b atisfaction. employee skills. An employee who is abl e to perform h i s j o b effectively is employees. This is possible as t h e j o b requirements ar e matched wi t h 9. Job analysis further helps to maximise j o b satisfaction among t h e same. assa does not have t h e their existing positions. e svs t o um onist t h e sake of f such jobs they may either be promoted or transferred from employees, who have t h e potentials to perform certain difficult jobs. For difficult f o r t h e management to identify those, from among t h e existing promotion and transfer. Once t h e content of t h e j o b is known, it is not 7. Job analysis also helps t h e management in matters concerning employee required f o r doing each j o b can also be determined.dcD bs ae steps may be taken to avoid unnecessary movements. The standard time the same. possible to ascertain how f a r an employee has successfully accomplished ofemployees. As t h e tasks involved in every j o b ar e already known, it is 5. It provides a suitable basis f o r an objective appraisal of t h e performance wage fora particular job.d otanoniv lateodtasson ob details, it is possible f o r t h e employer to determine t h e correct salary or required and t h e hazards involved 2. 3 Human Resource Management ent, tes may not arise een t h e kers and t h e ent 10. As ndards of output can be gically rmined in t u ne with t h e j o b potentials f o r a particular job, will not apply f o r t h e judge hi s own capabilities f o r t h e job. An applicant, who thinks that he Once t h e content of a j o b is known, it is possible f o r any applicant to t h e movements of workers during working hours to different places and ledesign short-cut methods. A motion study may be conducted to study is possible to identify certain unnecessary or repetitive operations and 6. It gives scope f o r work simplification. Once a j o b is thoroughly studied, it in performing each job. With these
  • 4. Methods ofJobEvaluation Following are some of the methods used for the purpose ofjob evaluation: ) Ranking Method (1) Classification Method (ü) Point Method and (iv) Factor Comparison Method Let us discuss these methods now. Ranking Method pay. Under this method the variousjobs in an enterprise will be ranked in the order of their importance, responsibilities and duties involved for the purpose of determining the appropriate remuneration for the employees. It is however necessary to ensure that the jobs ranked are similar in nature. For example, the job of ajunior clerk may be compared with that ofasenior clerk. Likewise, thejob ofasalesman may be compared with that ofasales officer. Only then alogical decision can be made on the suitable rate of wages. The remuneration payableto the sales officer, naturally, has to be more than that payable to the salesman. This is because, the salesman has to account for his performancealone. Onthe otherhand, the salesofficer isaccountable for the performance ofeach ofthe salesmen working underhim. This method, however, is unsuitable if the jobs to be compared are totally unrelated or dissimilar. For example, the job ofamachine worker andthatofa departmental manager cannot be ranked. Amachine worker can only be ranked along withafitter, aturner, aplumberoran electrician. Classification Method In this case, the various jobs in an organisation are classified under certain categories, In banks, for example, there are clerks, probationary officers and Managers, The starting scale of pay of allclerks, who may be doingdifferent jobs, is the same. The teachers in Government and aided colleges are classified into three Categories -Lecturers, Senior-Scale Lecturers and Selection Grade Lecturers. Ihe starting scale ofpay ofall lecturers is the same. Likewise, the scale of pay of all senior scale lecturers is the same. Ofcourse, depending uponthelength of erVice andqualificationsofindividual lecturersthere may becertain differences inpay.
  • 5. 2.7 InGovernmentservice, the employeesare classified into classone,classtue class three and class four. Within each there are employees doing different kind ofjobs.The job requirements of the variousemployeesin aparticular category, say, class four, are the same. Point Method In the case of the point method, the requirements of each job in terms of educational qualification,experience desired, physical requirements, dutiesand responsibilities involvedare first identified. The requirement regarding educationalqualificationmaybefurtherdivided into plus-twoqualification,basic degree, PGdegree, professionaldegree or diploma and so on. In thismanner,the uirementsregardingexperience,skill,physical fitnessetc.,are alsosub-divided After sub-division of the requirements, points are assigned. For example, professional degree may receive 50 points, PG degree 40 points, UG degree 30 points and so on. The total points given for a job will determine its place or position in the job structure. FactorComparison Method008 ) Clerk This method is based on the point method. The maximum points for the factors involved are determined by taking into account the key jobs in the organisation. This provides the basis for determining the points for the other jobs.This may be explainedwithanexample.Letus considerthe followingthree officejobs: () Typist (iü) Computer-operator Requirements Maximum Educational By usingthe factor comparisonmethod, the total points for the above three jobs may be determinedasshownbelow: Qualification Skill Experience Occupational nogge Hazards Total Points 40 30 15 Human Resource Management 100 Clerk 20 15 45 Typist 20 15 o 30i 35 15 75 Computer Operator 25 15 15 85
  • 6. JobAnalysis and Evaluation Ifthe employer decides to pay abasic payofRs. 2,000 per month plus Rs. 10 nerpoint for each ofthe above categories ofemployees, the total pay per month will beas follows: (a) Clerk (b) Typist : : (c) ComputerOperator: Rs.2,000 +Rs.450-Rs.2,450 2.8 Rs.2,000+Rs.750 =Rs.2,750 Rs.2,000+ Rs.850 =Rs.2,850
  • 7. PerformanceAppraisal Advantages Appraisal Thebenefitsof performance appraisal may beexplained as follows: Ithelpsto ensure that the right man has been inducted into the 9,2 anisation. Although every individual would have been thoroughly oftestand interview. examined before placement,itis necessary to know whether the person doeshis 2 Performance appraisal helps to know whether the training given to an employee has been really effective. If appraisal reveals that there is improvementinperformanceaftertrainingitshouldmeanthatthetraining iseffective. 1 The various incentives provided to an employee may be determined in accordance withhisperformanceevaluationreport. Increment,commission and career advancement benefits may be fixed based on the employees performance and progress. Performance appraisal also provides abasis for promotion, transfer or evenremoval ofanemployeefrom service. Anemployeewho hasshown goodprogress may be considered for promotion to ahigher level job. He may be transferred to some other section or branch if his performance in the present job is not up to the mark. An employee who is found to be highly inefficient may be even removed from service. 5. Itmotivates efficient employees to perform even better as they knowthat ifthey perform well they willbe suitably rewarded. On the other hand, it cautions the less efficient employees by indicatingthatif theirperformance 1S going to be ofthe same level they may even lose their jobs. Feriomanceappraisal isbasicallynecessarytoenablethe employee himselt lo know where he stands in relation to the other employeesofthe Organisation. This willinduce him to put in more efforts ifhe finds thathe 1S below his colleagues in performance. growth. 1. An emmployee whose performance is belowthe expected level may be given the necessary training to do better. This gives him a sense of satisfaction. Such asatisfied employee does notcomplain about anyone or anything. This improves human relations in the workplace. An atmosphere of cordiality prevailsin the organisation thatis vital for its 8. The performance appraisal records serve as evidence of an employee's progress. The management can preserve such records to defend itself against possible charges of favouritism or discrimination. sof Perfor swork withthe sameinterest and aptitude he displayed at the time
  • 8. 9.3 MethodsofPerformanceAppraisal The following arethe important methods of appraising the performance employees: 1. Ranking method 2. Graphic scale rating method 3. Forced choice method 4. Essay appraisal method 5. Paired comparisonmethod 6. Field review method 7. Critical incidents method Let us nowdiscuss these different methods. Ranking Method Name ofthe employee Thisisaconventionalmethod of appraisal.Underthismethod,theemployes in a group are given ranks by the superior according to their individual perfomance. Themethodresemblestheonefollowed inschoolsinpreparingthe progress reports of the students. The best employee gets the first rank, the second best the second rank and so on. Rank Shyam Human Resource Managemen oeel oroledbe 4 Graphic ScaleRatingMethod Mohan Sundar 3 Figure 9.1l Ranking Method 2 Rajiv Anumber offactors like attitude, aptitude, behaviour, honesty,commitnent etc., willhave to be considered in making an assessment of an employee performance. The superior may make asubjective assessment rather thanat objective measurementof theemployee'sprogress. For a subjectiveassessment the ranking method may not be recommended. Thismethod ofevaluation of employeesis widely used in enterprises. The important qualities to be assessed are determined first. The extent of fulfilento each such quality by an employee isthen tick marked.
  • 9. Performance Appraisal Name ofthe Employee ,..R. Mohan. Designation ......Mechanic. Nature of work......Repair Service.. Qualities Knowledge ofwork Quality of work Quantum ofwork done Extent ofco-operation Initiative Excellent Very Good Figure 9.2 Graphic RatingScale Good ForcedChoiceMethod Imay rate all their subordinates as 'very good. Average This method, like the ranking method, is simple to use. But the drawback is that sometimes the evaluator may tend to give an employee the same rating in Tespectofall his traits. For example, ifhehas given 'Excellent' for Quality of work, he may give the same rating even for behaviour, initiative, jobknowledge etc. 9.4 Someevaluatorsmay, in orderto be neutral or non-committal, rate majority of isillustratedbelow: Poor the employees as just 'average'. Onthe other hand, there are also superiors who In this case, the assessor has to assess his subordinates based on certain alements given to him. These statements may indicate the positive as well as the negative qualities of an employee. The evaluator has to select those statements that describethe employee, who is assessed, inthebest manner. This
  • 10. 9.5 Positive Qualities 1. Very knowledgeable 2. Meticulous in planning 3. Very good inexecution 4. Commited to work 5. Sincere 6. Dependable 7. Possessgood communicationskills 8. Loyal 9. Time conscious 10. Co-operative Essay AppraisalMethod methods discussed already. Human Resource 1. Shirks duties 2. Undependable Negative Qualities 3. Quarrelsome 4. Non-co-operative 6. 5. Poor in planning Paired Comparison Method other employee ofthe group. Lacksthe skill to communicate 7. Lacks initiative 8. Lethargic The evaluator will choose from the above statements those that describe the subordinate in the most appropriatemanner. But the drawback ofthis methodis that the superior has to select only from the given statements. He may find the statements either inadequate or unsuitable to bring out the actual traits of the individual. 9. Irregular 10. Irritable nature As the very name indicatesthis approachis descriptivein nature. The assessOr in this case has to write in detail about each of the subordinates whose Management performance he assesses. This method helps to overcomethe drawbackss ofthe reliable as it is in the evaluator's owm write-up. A superior may manage 5or 6 subordinates and knows the traits of eacn o them. It willnot, therefore, be difficult for him towrite about their performanc and progress. The assessment made usingthe essay method is boundto be more 3Butthe essay method is not free fromlimitations.Itis consideredIto be atime- cönsuming method. Thesuccess ofthe method depends mainly onthe capacity of the superior to write effectively about his subordingtes Inthis case a subordinatei in a group is compared with the otherr members. For example, if A, B, Cand Dare the subordinates working under S, A may be compared with B,C and D in respect ofjob knowledge,initiative, extent of co- operation and so on. In this manner every employee is Compared with every
  • 11. PerformanceAppraisal. Pairedcomparison methodis generally consideredto be a complicated one. Ttistime-consumingaswell. FieldReviewMethod This is an altogether different approach to performance appraisal. In this case,aninterviewer workingunderhim. thesupervisor and on the performance of the subordinates from the personneldepartmentofthe and gather information The supervisor may also be asked to suggest measures to improve the suhordinates performance. The interviewer records the views ofthe supervisor carefully and the same will be preserved for future reference or guidance. The success ofthis method, however, depends much on the capability ofthe interviewer toget the relevant information from each supervisor and the wilingness ofthe supervisor to disclose correct information. Critical Incidents Method This is yet another different method. The evaluator inthis case will be asked to record the behaviour ofdifferent subordinates when acritical incident takes placeinthe workplace. Ratingwill bedoneba_edontheextent of correctnessof the subordinate's behaviour. Name of the worker P Let us assume that P, Q,R, SandTarefactory workers. Letus further assume that Tis involved in an accidentwhile at workand recordthe reactions ofP, Q,R and Sand the scores they would get for the same. R employees. S 9.6 would meet Reaction Ran away from the place. Moreover, Informed the supervisor. Gave T the necessary first aid. Took Tto the nearest hospital. Score 0. Thescores givenare in accordance withthe extent of corectness of behaviour individual as judgement, alertness,initiative,loyalty etc. of eachemployee. This approach is suitableto measure such qualities of an The drawback ofthis methodis that criticalincidentsdonottakeplaceinthe workplace often. As aresult,itis not possibleto makefrequentappraisal ofthe whetheranincidentiscriticalornotisdifticulttojudge.
  • 12. Steps to makelPerformance Appraisal effective De following measures may be adopted to make performance apprzisal effective: 1There must be consensus among the raters on the criteria for appraisal of the subordinates' performance. Otherwise, each superior will adopt his oWn criterion to assess performance and this will result in lack of uniformity. Forexample,ifone superiorjudgesperformancebythequality ofwork and another gives weightage for the quantum of work done the assessment will not be correct.
  • 13. 9.9 Human Resource Management 2. The mnethod of appraisal onceselected should be continuously followed. 3. The needs to be This is necessary to ensure consistency in assessment. manager's capacity to judge the subordinates also examined. The General Manager ofthe enterprise may undertake this task. 4. There should be no discrimination onthe basisof religion,caste,:sex and such other considerations. The job performance of the subordinate and related issues alone must get the focus in appraisal. 5. Appraisal of subordinates' performance must be undertaken at regular intervals. Only then the manager will be able to know whether there is any change in performance. 6. The results ofappraisal must be communicated to the subordinate at the righttime. Onlythenthe subordinatewill be able to make effortsto perfom better ifthe results indicate that his performance is just average. 7. It willnot be enough if the superior only conveys the results to the subordinates. He must also tell them the ways and means to improvetheir performance. 8. Suitable incentivesmustbe givento the subordinateswho have performed really well. Such incentivesmay be in the form ofincrement,bonus, greater authority etc. Ifall the subordinatesare treated alike, irrespectiveoftheir performance, there will not be any motivationfor the efficient employes toput in efforts. 9. Performance appraisal is mneaningful only ifcertain important decisions like employee promotion,transferetc., are linkedto theirjobperformane. 10. For the appraisal of employeesto be successful, it is important that theid is trust and confidence between the superiors and subordinates.
  • 14. 9.7 Human Resource Managermen MBO method(MB0-MANAGEMENTBY OBJECTIVES) the objectives desiredto be achieved by the subordinate intune with the overall It is atechnique by which the superior andthe suubordinate jointly identify a resultsexpected. The concept ofMBO was developed by Peter Drucker The following are the stages involved in the process of MBO: 1. Establishment of Objectives -Oncethe basic o objectivessof the enterprise have been established, objectives of individual departments will haveto be set. Thetargets ofthe subordinates ofievery department will then be fixed mutually betweenthesubordinate concerned and his superior. This will be done after acertain number of meetings between thetwo. While settingthe targets of subordinates, it will be ensured thatthey are intune with the enterprise targets. In other words, there shall be perfect on ordination between the targets of the subordinates and those of the enterprise.The subordinates shall express their expected tasks in clear measurable terms. 2. Periodical Review- Theperformance ofthesubordinatesshall besubject to periodic review. The superiors shall provide appropriate directionfir the effective performance of thetask undertaken. The targets may alsobe revised if it is found that the subordinates are not able to proceed in the right direction. 3. Final Review - In the final meeting between the superior and the subordinate, toreview the latter's performance, if it is found that he subordinate has successfully accomplished his tasks, he gets not only appreciation but also reward in the form ofpromotion or such other benefit Ifthe performanceofthe subordinate is not satisfactory, he may begiven additional training to carry out his tasks better in the next period. Advantages of MBO 1. Itpromotes better communication relationship between the superior anu his subordinates. 2. It givesthesubordinate an opportunityto fix his owntargetsinconsultation with his superior. This he will do by considering his own potentials. subordinate knows precisely what he is expected todo. 3. As the subordinates have the freedom to determine their own targe they feelmotivated and also show keen interest in their attainment. 4. The periodic review of the subordinate's performance know whether he is proceeding in the right direction. enables himt0
  • 15. Performance Appraisal Disadvantages oflMBO biaossbloloe ootoloeien 1. Thesuperiorand his subordinate may have to meet several times forthe sake of settingthe objectives mutually. 9.8 Periodicreview of thesubordinate'sperformanceinvolves lot oftime and alsopaperwork. 3. MBO has not much to do with the lower levels of management.