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Human Resource Management
This document discusses human resource development (HRD) and its relationship to human resource management (HRM) and organizational strategy. It defines HRD as activities designed to provide employees with necessary skills. HRD functions include training, organizational development, and career development. The document outlines the importance of aligning HRD with organizational strategy to ensure employees are prepared for strategic goals. It also discusses challenges for HRD like global competition and changing workforce needs.
Human Resource Management
- 1. Associate Professor, BON SECOURSCOLLEGE FOR WOMEN, THANJAVUR Dr.N.R.SARAVANAN MBA, MBA, MA (Yoga), PGDHRM, M.Phil, Ph.D, HUMAN RESOURCE MANAGEMENT
- 2. Human Resource Roles& Functions Unit - I
- 3. DEFINITION OF HRD A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.
- 4. EMERGENCE OF HRD Employee needs extend beyond the training classroom Includes coaching, group work, and problem solving Need for basic employee development Need for structured career development
- 5. RELATIONSHIP BETWEEN HRMAND HRD Human resource management (HRM) encompasses many functions Human resource development (HRD) is just one of the functions within HRM
- 6. PRIMARY FUNCTIONS OFHRM Human resource planning Equal employment opportunity Staffing (recruitment and selection) Compensation and benefits Employee and labor relations Health, safety, and security Human resource development
- 7. SECONDARY HRM FUNCTIONS Organization and job design Performance management/ performance appraisal systems Research and information systems
- 8. HRD FUNCTIONS Trainingand development (T&D) Organizational development Career development
- 9. ORGANIZATIONAL DEVELOPMENT Theprocess of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts Focuses on both macro- and micro-levels HRD plays the role of a change agent
- 10. CAREER DEVELOPMENT Ongoingprocess by which individuals progress through series of changes until they achieve their personal level of maximum achievement. Career planning Career management
- 11.
- 12. CRITICAL HRD ISSUES Strategic management and HRD The supervisor’s role in HRD Organizational structure of HRD
- 13. STRATEGIC MANAGEMENT &HRD Strategic management aims to ensure organizational effectiveness for the foreseeable future – e.g., maximizing profits in the next 3 to 5 years HRD aims to get managers and workers ready for new products, procedures, and materials
- 14. SUPERVISOR’S ROLE INHRD Implements HRD programs and procedures On-the-job training (OJT) Coaching/mentoring/counseling Career and employee development A “front-line participant” in HRD
- 15. ORGANIZATIONAL STRUCTURE OFHRD DEPARTMENTS Depends on company size, industry and maturity No single structure used Depends in large part on how well the HRD manager becomes an institutional part of the company – i.e., a revenue contributor, not just a revenue user
- 16. SAMPLE HRD JOBS/ROLES Executive/Manager HR Strategic Advisor HR Systems Designer/Developer Organization Change Agent Organization Design Consultant Learning Program Specialist Instructor/Facilitator Individual Development and Career Counselor Performance Consultant (Coach) Researcher
- 17. HR’S STRATEGIC ROLE Employees as organisation’s assets Driving business strategy Spanning organizational functions HRD Deliverables: Performance Capacity Building Problem solving/consulting Org. change and development
- 18. STRATEGIC HRD Integrationof HRD with strategy formulation and implementation Long-term view of HR policy Horizontal integration among HR functions Vertical integration with corporate strategy SHR as core competitive advantage
- 19. DEFINITION OF HRROLES Role/Cell Deliverable/ Outcome Metaphor Core Activity Mgmt of SHR Executing corp. strategy Strategic Partner Aligning HR and bus. Strategy Mgmt of Firm Infrastructure Building an efficient infrastructure Administrative Expert Reengineering org. Processes Mgmt of Employee Contributions Increasing employee commitment and capability Employee Champion Providing resources to employees Mgmt of Transformation/Chang e Organizational renewal Change Agent Managing transformation and change,
- 20. IMPORTANCE OF HUMANRESOURCES Human resources are an important part of the value chain They can be unique, and thus a source of core competence in an organization If a core competence is related to HR, then HR can contribute to competitive advantage
- 21. STRATEGIC ANALYSIS OFHR: PURPOSE People related strategies may be important to new strategy (for example, a change in the way the organization does business) In today’s technologically complex business world, analysis of existing human resources is important in order to determine what options are available The network of people within an organization and their relationships with people can be an important part of strategy
- 22. HR AND SUSTAINABLECOMPETITIVE ADVANTAGE In some industries, people are the most important factor in success - advertising and creative development - leisure and tourism - management consulting - hospitals and medical professions The adaptability of people to changing environments is an important skill “The ability to learn faster than your competitors may be the only sustainable advantage” – Arie De Geus, former head of planning at Royal Dutch Shell
- 23. CHALLENGES FOR HRD Changing workforce demographics Competing in global economy Eliminating the skills gap Need for lifelong learning Need for organizational learning
- 24. COMPETING IN THEGLOBAL ECONOMY New technologies Need for more skilled and educated workers Cultural sensitivity required Team involvement Problem solving Better communications skills
- 25. TRAINING & HRDPROCESS MODEL
- 26. High Performance Organizations Traditional Organizations Narrow expertise Rugged individuals Centralized Closed Standardized selection Routine training Job-based pay Narrow, repetitive jobs Tall rigid hierarchies Functional departments Promote compliance Routine behaviors High Performance Organizations Multi-skilled team players Dispersed Open Realistic job interviews Continuous learning Performance-based pay Enriched jobs Flat, flexible hierarchies Self-contained businesses Promote involvement Innovation and cooperation Design Components People Decision Systems Human Resources Structure Values & Culture
- 27.
- 28.
- 29. RECRUITMENT The processby which a job vacancy is identified and potential employees are notified. The nature of the recruitment process is regulated and subject to employment law. Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.
- 30. RECRUITMENT Job description– outline of the role of the job holder Person specification – outline of the skills and qualities required of the post holder Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)
- 31.
- 32. SELECTION The processof assessing candidates and appointing a post holder Applicants short listed – most suitable candidates selected Selection process – varies according to organisation:
- 33. SELECTION Interview –most common method Psychometric testing – assessing the personality of the applicants – will they fit in? Aptitude testing – assessing the skills of applicants In-tray exercise – activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer Presentation – looking for different skills as well as the ideas of the candidate
- 34.
- 35. EMPLOYMENT LEGISLATION Increasinglyimportant aspect of the HRM role Wide range of areas for attention Adds to the cost of the business Even in a small business, the legislation relating to employees is important – chemicals used in a hairdressing salon for example have to be carefully stored and handled to protect employees.
- 36. DISCRIMINATION Crucial aspects ofemployment legislation: Race Gender Disability Disability is no longer an issue for employers to ignore, they must take reasonable steps to accommodate and recruit disabled workers. Copyright: Mela, http://www.sxc.hu
- 37.
- 38. DISCIPLINE Firms cannotjust ‘sack’ workers Wide range of procedures and steps in dealing with workplace conflict Informal meetings Formal meetings Verbal warnings Written warnings Grievance procedures Working with external agencies
- 39.
- 40. DEVELOPMENT Developing theemployee can be regarded as investing in a valuable asset A source of motivation A source of helping the employee fulfil potential
- 41.
- 42. TRAINING Similar todevelopment: Provides new skills for the employee Keeps the employee up to date with changes in the field Aims to improve efficiency Can be external or ‘in-house’
- 43. ***Good Afternoon BuddingManagers*** ***Unit 01 HR Roles and Functions*** contd
- 44. ROLE OF HRMANAGER 8/1/13 Conscience Role Counsellor Mediator Spokesman Problem solver Change Agent - As a Specialist - As a Source of help and also a controller
- 45. DEPARTMENT OF HUMANRESOURCES ORGANIZATIONAL CHART MANAGING DIRECTOR (CEO) Manpower planning and Development Salaries Unit Relationship Management Employee Relations Unit Loans, Benefits & Systems Unit HEAD HUMAN RESOURCES DEPARTMENT -Trade unions -Team Building -CSR Activities -HIV/AIDS -Sexual Harassment -Staff welfare -Staff Canteen -Staff Clinic -Staff Health, Safety & Security -Statutory Deductions- NSSF,NHIF -Tax Returns -Pay slips production This is a new strategy by large Corporate entities to manage many Staff in many Departments / Branches -Staff Loans -Retirement Benefits -Medical Cover -Overtime Claims -Leave Allowances -Daycare for Staff Children -Staff Recruitment -Staff Training & Development -Staff Deployment & Transfers -Staff Performance Management -Promotions - ADMINISTRATIVE ASSISTANT DISCIPLINARY COMMITTEE CHANGE MANAGEMENT
- 46. HR ORGANIZATION STRUCTURE Theorganizational structure of HR is usually very flexible and it reflects the immediate need of the organisation. There is no modern organisation where the HRM organizational Structure stayed the same for 18 months.
- 47. TYPES OF ORGANISATIONALSTRUCTURE HR department in line organisational structure. HR department in functional organisational structure. HR department in line and staff organisational structure. HR department in divisional organisational structure. HR department in matrix organizational structure.
- 48. H R DEPARTMENTIN LINE ORGANIZATIONAL STRUCTURE C.E.O. H R Manager Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer clerks clerks clerksclerks
- 49. H R DEPARTMENTIN FUNCTIONAL ORGANIZATIONAL STRUCTURE C.E.O. H R Manager Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer clerks clerks clerksclerks
- 50. H R DEPARTMENTIN LINE & STAFF ORGANIZATIONAL STRUCTURE C.E.O. H R Manager Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer clerks clerks clerksclerks Staff Function Line Function
- 51. H R DEPARTMENTIN DIVISIONALISED ORGANIZATIONAL STRUCTURE C.E.O. H R Manager Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer clerks clerks clerksclerks H R Officer (Northern Division) H R Officer (Southern Division) H R Officer (Eastern Division) H R Officer (Western Division)
- 52. H R DEPARTMENTIN MATRIX ORGANIZATIONAL STRUCTURE C.E.O. G.M. H. R. Department Engineering Department Finance Department Marketing Department Project A Project B Project C
- 53.
- 54. SIGNIFICANCE OF HRD It refers to the Knowledge, skills, abilities, talents, aptitude, values and beliefs of an Organizational Work force.
- 55. CHARACTERISTICS OF HR HR is complete humanbeing, emp enter with their own values and sentiments. Competencies are developed through HRD Programmes. Background, expectations and values vary from person to person, hence every one should be managed differently.
- 56. FEATURES OF HRD HRD is a systematic approach HRD is a continuous Process approach HRD is multidisciplinary HRD is embodied with techniques and processes HRD develops skills at all fn levels
- 57. SCOPE FOR HRD Recruiting with possibilities of Dev. Selecting to meet future demands Analysing, Appraising & developing performance of employees Training to acquire new skills Planning for succesion Learning through Group dynamics, Job rotation, Enlargement & empowerment.
- 58. NEED FOR HRD Changes in Economic policies Changing Job requirements Need for multi skilled HR Orgn Visibility and Transformation Process Technological Advances Organizational Complexity Human Relations
- 59. HRD OBJECTIVES ToPrepare the employee to meet the present and changing future job requirements. To prepare for higher level jobs. To enhance Orgn. Capabilities. To ensure smooth and efficient working of the Orgn.
- 60. HRD FUNCTIONS PerformanceAppraisal Employee Training Executive Development Career Planning & Development Succession plng Involvement in Quality Circles Worker’s Participation in Mgt
- 61. TECHNIQUES/ METHODS/INSTRUMENTS PerformanceApp / Potential Appraisal Career Plng / CareerDevelopment Employee Training / Executive development Organizational Change / Orgn Development WPM / Qly Circles Employee Councelling / Team work / Role Analysis Monetary rewards/Employee Benefits/Grievance Mechanism
- 62.
- 63. “WHAT IS STRATEGY”? Unified, comprehensive and integrated plan designed to ensure that the basic objectives of the enterprise are achieved” StrategicManagement: Cross functional process to view the Orgn as a Single system. Matching Strengths with Opportunities. Set of decisions and actions to achieve Orgn. Objectives.
- 64. MISSION, VISION ANDOBJECTIVES Vision: An Organizational Vision is to identify What they want to be? / What they want to create? Mission: It relates to the Company’s existence with the needs of the Society. Objectives: These are ends towards which activity is aimed. Accomplishment of Mission requires formulation of number of objectives.
- 65. STRATEGY – ANOVERLOOK SWOT Analysis. Formulation of Strategies. Selecting the best Strategy. Strategy Implementation. Strategy Evaluation and Control.
- 66. LEVELS IN STRATEGIES Corporate Level Strategies. Stability Strategy. Growth Strategies. Concentration Strategies. Merger and Acquisiton Strategies. **Horizontal Integration. ( Related Diversification ) **Conglomerate Diversification. ( Diversification into unrelated activity ) **Joint Ventures. ( Two firms carry out a specific project ) Retrenchment Strategies. ( Liquidation & Divestment ) SBU Level Strategies. Low cost Leadership. ( Enhancing Labour Productivity ) Differentiation Strategy. ( Produce pdt different from others ) Focus/ Niche Strategy. ( Concentrate on a specific product ) Functional Level Strategies.
- 67.
- 68. INTERNATIONAL HRM (GLOBAL ENVIRONMENT) International Co: “Export the Pdt manufactured in the home country.” Multinational Co: “ Establishes branches/subsidiaries in various countries and operate as a domestic company”
- 69. INTERNATIONAL HRM (GLOBAL ENVIRONMENT) Global Co: Produces Globally and Market Locally (or) Produces locally and Market Globally. Transnational Co: Produces, Markets, Invests and Operates across the world.
- 70. SOURCES OF GLOBALRECRUITMENT Parent Company Nationals. Host Company Nationals. Third Country Nationals.
- 71. GLOBAL SELECTION APPROACH Ethnocentric Approach Polycentric Approach Geocentric Approach ## Concept of Expatriates
- 72. COMPENSATION IN GLOBALENVIRONMENT Expatriate Pay Gratuity Allowances Taxation
- 73. Human Resource Planningand Recruitment Unit - II
- 74. HR PLANNING HRPlanning is the process of examining an organizations’ future human resource need. It involves: Identifying and acquiring the right number of people with the proper skills Motivating them to achieve high performance Creating interactive links between business objectives and resource planning activities
- 75. Human Resource Planning(HR Planning) is both a process and a set of plans. It is how organizations assess the future supply of and demand for human resources. An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the members and types of employees to be recruited into the organization or phased out of it. Dynamic by nature, the HR planning process often requires periodic readjustments as labor market conditions change. HUMAN RESOURCE PLANNING
- 76. Technological forecasts Economic forecasts Marketforecasts Organizational planning Investment planning Annual operating plans Annual employment requirements Numbers Skills Occupational categories Existing employment inventory After application of expected loss and attrition rates Variances End If surplus If shortage Decisions Layoff, retirement, etc. Decisions Overtime, recruitment, etc. End End Strategic Planning Human Resource Demand Human Resource Supply Compared with If none Action Decisions HRP PROCESS
- 77. All effective HRplanning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages: Situation analysis or environmental scanning Forecasting demand for human resources Analysis of the supply of human resources Development of plans for action THE HRP PROCESS
- 78. WHAT IS HRP? HRP is a sub-system of total organizational planning. HRP facilitates the realization of the company’s objectives for the future by providing the right type and number of personnel HRP is also called Manpower planning, Personnel planning or Employment planning
- 79. BENEFITS OF HRP Create reservoir of talent Prepares people for future Expand or Contract Cut Costs Succession Planning
- 80. FORECASTING TECHNIQUES ManagerialJudgment Ratio trend analysis Work Study Techniques Delphi Technique Flow Models Others
- 81. FACTORS IN DEMANDFORECASTING Social factors – Working conditions, Govt. regulations, environmental conditions, religious, cultural. Technological Factors Political Factors – Trade restrictions, War etc. Economic Factors Demand generation Growth Employee Turnover
- 82. JOB ANALYSIS JobAnalysis is not a one time activity as jobs are changing constantly The job and not the person – an important consideration in job analysis is conducted of the job and not of the person It simply highlights what are the minimum activities that are entailed in a job.
- 83. JOB ANALYSIS SkillRange Does the job cover a reasonable but not too extensive range of different tasks? Are there opportunities to use knowledge and skills associated with effective performance of the job? Can the individual make full use of their skills and develop their skill base?
- 84. JOB ANALYSIS JobPurpose Is the purpose of the job clearly and unequivocally Is its contribution to the organisation’s objectives evident? Is its contribution to its dept obvious? Is the post holder responsible for the successful completion of the whole job? Do the internal systems help the post holder do the job?
- 85. JOB ANALYSIS Relationships Are the formal relationships clearly specified and related to the achievement of the objectives? Is there opportunity to develop working relationships within and across the department’s boundaries? Are colleagues available with whom the post holder can discuss professional issues
- 86. JOB ANALYSIS JobOutcomes: Can the post holder see the result of their efforts? Can the results of the post holders efforts be recognised? Does the post holder have the opportunity to influence their own levels of performance? Rewards Are the rewards appropriate and obtainable? Are the rewards linked directly with the performance of the post holder?
- 87. STEPS IN JOBANALYSIS 1. Organizational Analysis – Overview of various jobs in the organization and the linkages between them and the contribution of various jobs towards achieving organizational efficiency and effectiveness. 2. Uses of Job Analysis Information 3. Selection of jobs for analysis 4. Collection of Data 5. Preparation of Job description – tasks, duties, responsibilities 6. Preparation of Job Specification – personal attributes required in terms of education, training, aptitude and experience to fulfill the job description
- 88. Tasks Responsibilities Duties Job Analysis JobDescriptions Job Specifications Knowledge Skills Abilities Human Resource Planning Recruitment Selection Training and Development Performance Appraisal Compensation and Benefits Safety and Health Employee and Labor Relations Legal Considerations Job Analysis for Teams Job Analysis: A Basic Human Resource Management Tool
- 89. JOB DESCRIPTION Ajob description Clarifies work functions and reporting relationships, helping employees understand their jobs. Aids in maintaining a consistent salary structure. Aids in Performance evaluations. Is a set of well written duty statements containing action words which accurately describe what is being done.
- 90. Duty statements should focus on primary, current, normal, daily duties and responsibilities of the position (not incidental duties, an employee’s qualifications or performance, or temporary assignments). Related or similar duties should be combined and written as one statement. Should be a discreet, identifiable aspect of the work assignment, described in one to three sentences, and should be outcome-based, allowing for alternate means of performing the duty, changes in technology, preferences of employees and supervisors, and accommodations of workers with disabilities, without altering the nature of, and/or the duty itself.
- 91. WRITING A JD Duties are to be listed in order of importance, not necessarily frequency. There is no need to group tasks/duties under sub headings, however it is acceptable. Commence each statement with a verb eg 'processes', 'maintains', 'records' etc, . Avoid using the term 'responsible for' rather describe the action e.g. 'obtains', 'coordinates' etc.
- 92. WRITING A JD Frequencies should be identified in multiples of 5%. Duties that take less than 5% of the officer's time should not be shown as separate but grouped with other duties. Use action verbs which tell what the position does. Examples include "supervises", "programs", "directs" and "analyzes". Provide specific examples to illustrate the duties Avoid ambiguous terms such as "oversees" or "manages", instead, describe the activities involved in overseeing or managing. Quantify activities when possible. Examples may include: How often is the activity performed? How much money does this position manage? What is the volume of work handled?
- 93. WRITING A JD: PRIMARY FUNCTION What is the Position's objective? What is the Role of Position (including key relationships)? Position summary [Briefly state the purpose or objective of the position]: Essential job functions [State the major responsibilities, indicate New (N) or Existing (E), and the estimated percent of time devoted to each - include descriptive statements of typical or representative tasks associated with the major responsibilities/functions]: State briefly the general function of your position, including the basic nature of the department and the relationship of your position with other positions in
- 94. PERSON SPECIFICATION PersonSpecification is a statement derived from the job analysis process and the job description Of the characteristics that an individual would need to possess in order to fulfill the requirements of a job
- 95. REASONS FOR CONDUCTINGJOB ANALYSIS Staffing – would be haphazard if recruiter did not know qualifications needed for job Training and Development – if specification lists a particular knowledge, skill, or ability, and the person filling the position does not possess all the necessary qualifications, training and/or development is needed Compensation and Benefits – value of job must be known before dollar value can be placed on it
- 96. REASONS FOR CONDUCTINGJOB ANALYSIS (CONTINUED) Safety and Health – helps identify safety and health considerations Employee and Labor Relations – lead to more objective human resource decisions Legal Considerations – having done job analysis important for supporting legality of employment practices
- 97. CONDUCTING JOB ANALYSIS Thepeople who participate in job analysis should include, at a minimum: The employee The employee’s immediate supervisor Other key stakeholders in the organization
- 98. HR Processes –An Employee Life Cycle
- 99. ROUTINE HR FUNCTIONS Manpower planning Recruitment and Selection Training & Development Appraisals – Performance Management Transfers / Promotions Compensation and Benefits
- 100. NON ROUTINE HRFUNCTIONS Culture Management Change Management Cross Cultural Issue Management HR Audit HR Accounting Outsourcing of HR VRS / Existing Employee Management / Succession Planning
- 101. HR PROCESS MAPPING Business Planning HRPolicy HR Planning Recruitment Selection Performance Management Compensation Management Talent Management Training Development HR Systems Data Mgmt Employee Relations Occupational Health and Safety
- 102. Recruitment: Overallprocess of defining jobs profiles and inviting applicants. Selection: Specific process of narrowing the focus and selecting the perfect fit Definitions
- 103. MANPOWER PLANNING BusinessNeeds Financial Feasibility Future Plans Brand Name
- 104. MANPOWER PLANNING Whydoes the position exist? Temporary Replacement Permanent Replacement Creation of new position
- 105. RECRUITMENT AND SELECTIONPROCESS Business Plan Related HR Plan Competencies People Compensation and Benefits Numbers Current : Budgeted and Actual Future : Short Term and Long Term Three Conditions Current = Future Maintenance B = A Vacancy Filling B > A Current > Future Redundancy Planning Current < Future Recruitment Plan
- 106. RECRUITMENT AND SELECTIONPROCESS Recruitment Plan Position Description/Specifications Person Specifications Method of Recruitment Internal Reference/Promotions/Transfers External Advertisement Where to advertise Writing an advertisement Consultants Retainer Multiple Internet Receiving Applications and Screening/Filing
- 107. RECRUITMENT AND SELECTIONPROCESS Screening /Short-listing Coding Computer aided screening Selection Tools Written Tests Group Discussions Interviews Assessment Centres Reference Checks Offer Joining
- 108. WHY OBJECTIVE SETTING? Gives direction to job. Helps focus on important job areas. Assists review and change in job emphasis. Provides a basis for appraisal, counselling and feedback. Increases mutual job understanding with superior.
- 109. HRS ROLE INPERFORMANCE MANAGEMENT Delivering time-lines Ensuring timely adherence Auditing the objectives jointly with line managers Ensuring objectives are in line with organisational goals Requesting modification if required
- 110. Training & Developmentand Performance Appraisal UNIT - III
- 111. INTRODUCTION Performance appraisalis an evaluation of the performance of an employee against the job standards in terms of quantitative, qualitative and behavioural aspects at the workplace. A successful PA process involves explaining the job, communicating expectations, observing and documenting behaviour and providing frequent informal feedback.
- 112. WHY PA ? It helps the supervisor and the employee to – Understand individual strengths & weaknesses of performance Mutually understand expectations for performance Form a basis for personnel action Determine training & development needs of employees
- 113. PERFORMANCE APPRAISAL ANDTRAINING NEEDS Review org. goals to associate preferred org. results in terms of units of performance i.e. quality, quantity, cost or timeliness. Specify desired results for the domain, gives guidance & focus on results needed by other domains Learning goals Prioritize the range of results needed from the employee helps the supervisor understand what training needs to be given.
- 114. PERFORMANCE APPRAISAL ANDTRAINING NEEDS Identify measures to evaluate if an how well the domain’s desired results were achieved. Identify standards for evaluating how well the desired results were achieved. Document a performance plan – desired results, measures and standards. Conduct ongoing measurement to track the performance of the employee.
- 115. PERFORMANCE APPRAISAL ANDTRAINING NEEDS To provide an opportunity for the employee for introspection, Self-evaluation and goal-setting so that he remains on the path of development. To prepare the employees for higher jobs by reinforcing development of behaviour & qualities for these higher level positions. To generate relevant data on each employee periodically. To enable employee to adopt the norms and values of the organization and develop commitment.
- 116. PERFORMANCE APPRAISAL PROCESS Done on certain criterions or standards fixed in advance. Employee should be aware of those yardsticks. Steps in PA Establishing standards Communicating stds. to employees Measuring actual performance. Comparing actual with stds. Discussing reports with employees Taking corrective action
- 117. Individual Evaluation Methods •Confidential report • Essay evaluation • Critical incidents • Checklists • Graphic rating scale • Behaviorally anchored rating scale • MBO
- 118. Group Appraisal Ranking Paired comparison Forced distribution Performance tests Field review technique PERFORMANCE APPRAISAL METHODS
- 119. Performance Appraisal Methods Traditional methods 1.Confidential report 2. Essay evaluation 3. Critical incidents 4. Checklists 5. Graphic rating scale 6. Straight Ranking 7. Paired comparison 8. Forced distribution 9. Grading system 10.Field review technique 11.Nominations 12.Work samples
- 120. Performance Appraisal Methods Modernmethods 1. Assessment centre 2. Human resource accounting – costs & contribution 3. Behaviorally anchored rating scale 4. MBO 5. 360º performance apparaisal
- 121. CRITICAL INCIDENT METHOD Ex:A fire, sudden breakdown, accident Workers reaction scale A informed the supervisor immediately 5 B Become anxious on loss of output 4 C tried to repair the machine 3 D Complained for poor maintenance 2 E was happy to forced test 1
- 122. CHECKLIST METHOD Simple checklistmethod Weighted checklist method Forced choice method Simple checklist method: Is employee regular Y/N Is employee respected by subordinate Y/N Is employee helpful Y/N Does he follow instruction Y/N Does he keep the equipment in order Y/N
- 123. WEIGHTED CHECKLIST METHOD weightsperformance rating (scale 1 to 5 ) Regularity 0.5 Loyalty 1.5 Willing to help 1.5 Quality of work 1.5 Relationship 2.0
- 124. FORCED CHOICE METHOD CriteriaRating 1.Regularity on the job Most Least •Always regular •Inform in advance for delay •Never regular •Remain absent •Neither regular nor irregular
- 125. GRAPHIC RATING SCALE •Continuous Rating Scale • Discontinuous Rating Scale Employee name_________ Deptt_______ Rater’s name ___________ Date________ ------------------------------------------------------------------------ Exc. Good Acceptable Fair Poor 5 4 3 2 1 _ Dependability Initiative Overall output Attendance Attitude Cooperation Total score Continuous Rating Scale
- 126.
- 127. BARS (BEHAVIORALLY ANCHOREDRATING SCALE) Step 1. Identify critical incidents Step 2. Select performance dimension Step 3. Retranslate the incidents Step 4. Assign scales to incidents Step 5. Develop final instrument
- 128. MBO PROCESS Setorganizational goals Defining performance target Performance review feedback
- 129. Group Appraisal Ranking Paired comparison Forced distribution Performance tests Field review technique PERFORMANCE APPRAISAL METHODS
- 130. RANKING METHOD Employee Rank A2 B 1 C 3 D 5 E 4
- 131. PAIRED COMPARISON METHOD AB C D E Final Rank A - - - + + 3 B + - - + + 2 C + + - + + 1 D - - - - + 4 E - - - - - 5 No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
- 132. FORCED DISTRIBUTION METHOD 10%20% 40% 20% 10% poor Below average average good Excellent No. of employees Force distribution curve
- 133. FIELD REVIEW METHOD Performancesubordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^
- 134. PERFORMANCE CRITERIA FOREXECUTIVES For top managers Return on capital employed Contribution to community development Degree of upward communication from middle-level executives Degree of growth and expansion of enterprise.
- 135. FOR MIDDLE LEVELMANAGERS Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
- 136. FOR SUPERVISORS Qualityand quantity of output in a given period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period
- 137.
- 138. A DEFINITION .. . All forms of financial return, tangible services and benefits that employees receive as part of their employment relationship
- 139. COMPONENTS OF ATOTAL COMPENSATION PROGRAM - 1 Financial Direct wages, salaries, commissions, bonuses Indirect insurance plans life, health, dental, disability social assistance benefits retirement plans, social security, workers’ comp paid absences vacations, holidays, sick leave
- 140. COMPONENTS OF ATOTAL COMPENSATION PROGRAM - 2 Non-Financial The Job interesting, challenging, responsible opportunity for recognition, advancement feeling of achievement Job Environment policies, supervision, co-workers, status symbols, working conditions, flextime, compressed work week, job sharing, telecommuting, flexible benefits programs
- 141. FACTORS THAT INFLUENCEWAGE LEVELS WAGE MIX Conditions of Labor Market Area Wage Rates Cost of Living Collective Bargaining Legal Requirements Compensation Policy of Organization Worth of Job Employee’s Relative Worth Employer’s Ability to Pay
- 142. STEP 1 -ESTABLISH GENERAL WAGE LEVEL FOR ORGANIZATION Factors to consider: Other firm’s rates Union demands Cost-of-living changes Firm’s ability to pay
- 143. STEP 2 -ESTABLISH WAGE STRUCTURE (THE PAY FOR EACH JOB) Employ a job evaluation system Ranking Job Classification Point System Factor Comparison Results: pay grades rate ranges
- 144. STEP 3 -ESTABLISH PAY FOR EACH INDIVIDUAL ON EACH JOB Inputs: Performance appraisal information Seniority system
- 145. A PAY MODEL-- 3 BASIC COMPONENTS I. Compensation Objectives II. Foundation Concepts III. Techniques for Management
- 146. A PAY MODEL I.COMPENSATION OBJECTIVES - 1 Organization Performance Labor Costs Attitudes and Behaviors Laws and Regulations
- 147. A PAY MODEL I.COMPENSATION OBJECTIVES - 2 Influence forms & procedures For example: if objective is pay for performance, emphasize incentives, merit pay plans if objective is stable, experienced workforce, emphasize seniority-based pay
- 148. A PAY MODEL II.FOUNDATION CONCEPTS Equity External Equity Comparison: outside organization Internal Equity Comparison: inside organization, among jobs Employee Equity Comparison: individuals doing same job for same organization
- 149. A PAY MODEL III.TECHNIQUES FOR MANAGEMENT A. Pay Level B. Pay Structure C. Individual Pay Rates
- 150. A PAY MODEL III.TECHNIQUES FOR MANAGEMENT A. PAY LEVEL Defined: average rates paid by employer Applicable concept: External Equity 3 Pure Alternatives lead competition match competition lag competition Mechanism used: Market Wage Survey
- 151. MARKET WAGE ANDSALARY SURVEYS Select key jobs. Determine relevant labor market. Select organizations. Decide on information to collect: wages/benefits/pay policies. Compile data received. Determine wages and benefits to pay.
- 152. MARKET WAGE LEVELS •Whichcompany is leading the market? •Which company is lagging the market? •What would the wage level line look like for a company that was meeting/matching the market?
- 153. A PAY MODEL III.TECHNIQUES FOR MANAGEMENT B. PAY STRUCTURE Defined: pay rates for different jobs within a single organization Applicable concept: Internal Equity Pay more for jobs with greater qualifications less desirable working conditions more valuable output Mechanism used: Job Analysis & Job Evaluation
- 154. JOB EVALUATION defined:the systematic evaluation of job descriptions outcome: a hierarchy of organizational jobs according to their content and value to the organization Methods: ranking classification factor comparison point method
- 155. JOB RANKING SYSTEM Simplestand oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth
- 156. JOB CLASSIFICATION SYSTEM Systemof job evaluation by which jobs are classified and grouped according to a series of predetermined wage grades
- 157. POINT SYSTEM Quantitative jobevaluation procedure that determines the relative value of a job by the total points assigned to it
- 158. FACTOR COMPARISON SYSTEM Jobevaluation system that permits the evaluation process to be accomplished on a factor-by-factor basis by developing a factor comparison scale
- 159. HAY PROFILE METHOD Jobevaluation technique using three factors – knowledge, mental activity, and accountability – to evaluate executive and managerial positions
- 160. A PAY MODEL III.TECHNIQUES FOR MANAGEMENT C. INDIVIDUAL PAY RATES Defined: pay rates for different individuals doing the same job within an organization Applicable concept: Employee Equity 2 Techniques Flat Rate Pay Ranges Mechanisms used: Performance or Seniority
- 161. WAGE CURVE Curve ina scattergram representing the relationship between relative worth of jobs and wage rates
- 162. COMPONENTS OF THEWAGE STRUCTURE
- 163. PAY GRADES Groups ofjobs within a particular class that are paid the same rate or rate range
- 164. ELEMENTS OF THERATE RANGE
- 165. COMMON PAY GRADERANGES Laborers & Trades, up to 20% Clerical, Technical, Para-professional, 15- 49% First Level Supervisors, Professionals 30- 50% Middle and Senior Level Management, 40- 100%
- 166. MONITORING COMPENSATION COSTS Compra-Ratio Formula: A compra ratio < 1 indicates lag A compra-ratio > indicates excess Actual Average Pay for Grade Midpoint Pay for Grade
- 167. HOW WOULD YOUHANDLE OUTLIERS? An individual whose current pay is beyond the maximum of the pay grade for his/her job An individual whose current pay is below the minimum of the pay grade for his/her job
- 168. FEDERAL WAGE LAWS Davis-BeaconAct of 1931 Walsh-Healy Act of 1936 Fair Labor Standards Act of 1938
- 169. NONEXEMPT EMPLOYEES Employees coveredby the overtime provisions of the Fair Labor Standards Act
- 170. EXEMPT EMPLOYEES Employees notcovered by the overtime provisions of the Fair Labor Standards Act
- 171. COMPARABLE WORTH The conceptthat male and female jobs that are dissimilar, but equal in terms of value or worth to the employer, should be paid the same
- 172. Compression of differentialsbetween job classes, particularly the differential between hourly workers and their managers
- 173.
- 174. What is PerformanceAppraisal • It is the process by which organization evaluate employee job performance. • It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally establishing a plan of improvement. • It is a systematic and objective way of evaluating both work-related behaviour and potential of employees. 6/29/2020 175
- 175. Difference between PMand PA 6/29/2020 Processes used to identify, encourage, measure,evaluate, improve, and reward employee performance. The process of evaluatinghow well employees perform their jobs and then communicating that information to the employees.
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- 177. Benefits of PerformanceAppraisal 6/29/2020 178
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- 180. Appraisal Factors usedin A.C.C. ltd • Ability to take decisions • Leadership • Employee relation - ship • Delegation • Ability to run meetings • Organising ability • Loyalty • Initiative • Ability to communicate • Judgement 6/29/2020 181
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