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Concept of Training and Development Process in Corporate
Organization
Training is defined by Wayne Cascio as “training consistsof planed programs
undertaken to improveemployee knowledge, skills, attitude, and social
behaviour so that the performanceof the organization improves
considerably.”Training isnormally viewed as a short process. It is applied to
technical staff, lower, middle, senior level management. When applied to
lower and middlemanagement staff it is called as training and for senior
level it is called managerial development program/executivedevelopment
program/development program.
Objectives of training and development
The purpose of training and development canbe explainedas follows –
1. Improving quality of work force: -
Training and development help companies to improvethe quality of
work doneby their employees. Training programsconcentrateon
specific areas. There by improving thequality of work in that area.
2. Enhance employeegrowth: -
Every employeewho takes development programbecomes better at
his job. Training providesperfection and required practice, therefore
employee’s area ableto develop them professionally.
3. Preventsobsolescence: -
Through training and development, theemployee is up to date with
new technology and the fear of being thrown out of the job is reduced
4. Assisting new comer: -
Training and development programs greatly help new employees to get
accustomed to new methods of working, new technology, thework
cultureof the company etc.
5. Bridging thegap between planning and implementation: -
Plans made by companiesexpect people to achievecertain targetswithin
certain timelimit with certain quality for thisemployeeperformancehas
to be accurateand perfect. Training helps in achieving accuracy and
perfection.
6. Health and safety measures: -
Training and development programclearly identifiesand teaches
employees about the different risk involved in their job, the different
problemsthat can arise and how to prevent such problems. This helps to
improvethe health and safety measures in thecompany.
Methods of training and development
1. On the job training method: -
In this method workers who have to be trained are taken to thefactory,
divided into groupsand one superior is allotted to every group. This
superior or supervisor first demonstrateshow the equipment must be
handled, and then the worker is asked to repeat whatever he has
observed in the presence of the supervisor. This method makes it easy for
the employee to learn the detailsabout specific equipment. Once the
worker studies the first equipment thoroughly thesupervisor moves on to
the next equipment and so on.
2. Apprenticeship training: -
In this method both theory and practical session are conducted. The
employee is paid a stipend until he completestraining. Thetheory sessions
give theoretical information about theplant layout, thedifferent
machines, their parts and safety measures etc. The practical sessionsgive
practical training in handling theequipment. The apprenticemay or may
not be continued on the job after training.
3. Vestibuletraining: -
In this method of training an atmospherewhich is very similar to the
real job atmosphere is created. The surroundings, equipment, noise
level will be similar to the real situation. When an employee is trained
under such conditionshe gets an idea about what the real job situation
will be like. Similarly, when heactually startsdoing thejob he will not
feel out of place. This method is used to train pilotsand astronauts. In
some placesgraphicsare also used to createthe artificial surroundings.
This method involvesheavy investment.
4. Job rotation: -
In this method the person is transferred fromone equipment to the
other for a fixed amount of time until heis comfortablewith all the
equipment. At the end of the training theemployeebecomes
comfortablewith all theequipment. He is then assigned a specific task.
5. Classroommethod: -
In this method the training isgiven in the classroom. Video, clippings,
slides, charts, diagramsand artificial modulesetc. areused to give
training.
Advantages of training and development
 The following are theadvantagesof training programto the
company: -
1. Increase in efficiency of worker: -
Training programscan help workers to increase their efficiency
levels, improvequality and thereby increasesales for the company.
2. Reduced supervision: -
When workers have been formally trained they need not be
supervised constantly. Thisreduces the work load on the supervisor
and allowshim to concentrateon other activitiesin thefactory.
3. Reduction in wastage: -
The amount of material wasted by a trained worker is negligibleas
compared to theamount of material wasted by an untrained
worker. Due to thisthe company is able to reduceits cost its cost of
production.
4. Less turnover of labour: -
One of theadvantages of thetraining programisthat it increases
the confidenceof employees and providesthemwith better career
opportunities. Dueto this employeegenerally do not leave the
company. There by reducing labour turnover.
5. Training helps new employees: -
A person, who is totally new to thecompany, has no idea about its
working. Training helpshim to understand what is required from
him and helps himto adjust to thenew environment.
6. Union management relations: -
When employees are trained and get better career opportunities.
The union startshaving a possible attitudeabout themanagement.
They feel that the management is genuinely interested in workers
development. This improves union management relations.
 The following are theadvantagesof training programto the
employee:-
1. Better career opportunities: -
Training programsprovidethelatest information, developstalent
and due to this the employeeis in a position to get better jobs in the
same company or other companies.
2. High rewards: -
Effective training programs result in improved performance.
When performance appraisal is done excellent performance
from the employee is rewarded by giving him incentives and
bonus.
3. Increased motivation: -
Employees who have been trained are generally moreconfident as
compared to others. Sincetheir efforts will be rewarded in future
they arevery much interested in improving their performance.
Therefore, we can say that their motivation levelsarevery high.
4. Group efforts: -
Training programsare not only technical programsbut are also
conducted in areas like conflict management, group dynamics
(formal and informal groups), behavioural skills, stress
management etc. thisenables employees to put in group effort
without facing problemsthat groupsnormally face. In other words,
training teachespeopleto work in a group.
5. Promotion: -
People who attend training programslearn fromthemand improve
themselves are generally considered for promotion. Thus, training
increases chances of promotion.
Evaluation of training and development program
Effectiveness of training programsareconstantly evaluated by the
company to find if the money, they have invested has been spend
properly or not. Training programscan be evaluated by asking
following questions.
a) Has change occurred after training?
b) Is the change due to training?
c) Is the change positiveor negative?
d) Will the changecontinuewith every training program?
 A training programshould givefollowing resulting changes -
1. Reaction: -
Reaction refersto attitudeof employee about thetraining,
whether the employee considerstraining to be +ve or –ve one. If
reaction is+ve then people have accepted the programand
changes will be possible.
2. Learning: -
Another method of judging effectivenessis to identify levelsof
learning i.e. howmuch the peoplehave learnt during the
training. Thiscan be found out by trainersmark sheet, the report
submitted by theemployee, and actual performance.
3. Behaviour: -
The HR department needs to understand behaviour of the
employees, to understand theeffectiveness of training. The
behavioural changecan be seen in how theperson interactswith
juniors, peer groupsand seniors. They mark change in behaviour
and informthe HR department of thesuccess of training
program.
4. Result: -
Results provided by employee in monetary termsalso determines
effectiveness of training programi.e. employeesuccess in
handling theproject, thegroup performancebefore and after
training etc.
Concept of Performance Management and Its Relevance in an
Organization
Introduction: -
Performancemanagement is the improvement of theoverall
performanceof theindividual member or staff so by thisthe
organization can improveitsown performance. Or we can say
that managing performanceis theindividual performance
managing in theorganization so by this the organization can be
able to achieve its pre-settled goals.
Definition of PerformanceManagement: -
“A management process design to link theorganization’s
objectiveswith those of the individual in such a way as to ensure
that both individual and corporateobjectivearefor as possible
met.”
Objectivesof PerformanceManagement: -
1. To confirmtheservices of probationary employeesupon their
completing theprobationary period satisfactorily
2. To check theeffective& efficiency of individuals, teams&
organization
3. To effect promotionsbased on competenceand performance
4. To access the training and development needs of the
employees
5. To decide upon the pay rise
6. PM can be used to determinewhether HR programmessuch as
selection, training, and transfer havebeen effectiveor not.
Performance Management includes…: -
1. Work plan:–
A document that describesthe work to be completed by an
employee within theperformancecycle, theperformance
expected, and how theperformancewill be measured.
2. Correctiveaction plan:–
A short-termaction plan that isinitiated when an employee’s
performancefailsto meet expectations. Itspurpose is to
achievean improvement in performance.
3. Individual development plan:–
An action plan for enhancing an employee’s level of
performancein order to excel in the current job or preparefor
new responsibilities.
4. Performanceappraisal: –
A confidential document that includestheemployee’s
performanceexpectations, a summary of the employee’s
actual performancerelativeto those expectations, an overall
rating of the employee’s performance, and the supervisor’s
and employee’s signatures.
5. Performancedocumentation: –
A letter, memo, completed form, or note on which the
supervisor indicatesthe extent to which the employee is
currently meeting expectationsand providesevidenceto
support that conclusion.
6. Fair appraisal: –
Appraising employeesin a manner that accurately reflects
how they performed relativeto theexpectationsdefined in
their work plan and in a manner that is not influenced by
factorsirrelevant to performance.
Highlightsof the system: -
1. The appraiser and the appraisejointly set the Key Result
Areas (KRA’s) and assign mutually agreed weightage
expressed as a percentage.
2. Simplemathematical relationship between set weightage
and accomplishment givesa final numerical scoreon KRA’s.
3. To evaluateall management personnel on company values
and leadership attributesa new section has been added
entitled “Values in Action”.
What is a key result area?
1. A KRA refers to a target that needs to be achieved by the
appraisein a given time.
2. KRA’sare the set of performanceexpectationsfromthe
appraise.
3. The focus is on tangibleoutputs. However, thisdoes not
mean that tasks that have a qualitativeoutput cannot
form a KRA.
4. The focus is on tangibleoutputs. However, this does not
mean that tasks that have a qualitativeoutput cannot
form a KRA.
Setting KRA in case of a Functional Reporting Relationship
1. Functional reporting caseswill requireinput fromthe
functional superior in setting KRAsfor theappraise.
2. The appraiser, the appraise and the functional superior
will have to mutually agreeupon the KRAsfor the
appraise.
3. In case of a disagreement, it will be the functional
superior’sresponsibility to convincetheadministrative
superior to reach an agreement on the KRAs and
communicatethesame to the appraise.
4. In some cases, functional goalscould be super-ordinate
to business goals.
Components of Performance Management
1. PerformanceStandards- establishment of
organizational or systemperformancestandards,
targetsand goals and relevant indicatorsto improve
public health practice.
2. PerformanceMeasures- application and use of
performanceindicatorsand measures.
3. Reporting of Progress - documentation and reporting
of progress in meeting standardsand targetsand
sharing of such information through feedback.
4. Quality Improvement - establishment of a program
or process to manage change and achieve quality
improvement in public health policies, programsor
infrastructurebased on performancestandards,
measurements and reports.
Importance of Performance Management
1. A PerformanceManagement Systemenables a
business to sustain profitability and performanceby
linking theemployees' pay to competency and
contribution.
2. It provides opportunitiesfor concerted personal
development and career growth.
3. It brings all the employees under a single strategic
umbrella.
4. Most importantly, it givessupervisorsand
subordinatesan equal opportunity to express
themselves under structured conditions.
5. Organizationscan effectively managethe
performanceappraisal processwith our online
performancemanagement system.
6. It calls for a high level of co-ordination, channelled
information flow, and timely review.
Concept of Corporate Social Responsibility
Definition of CSR:-
Corporatesocial responsibility, often shortened “CSR,"is
a corporation'sinitiativesto measureand take
responsibility for thecompany's effects on environmental
and social wellbeing. The term generally appliesto efforts
that go beyond what may be required by regulatorsor
environmental protection groups.
CSR may also be referred to as "corporatecitizenship"and
can involveincurring short-termcoststhat do not provide
an immediatefinancial benefit to thecompany, but
instead promotepositivesocial and environmental
change.
Types of CSR: -
There are four types of CSR according to its beneficiaries: -
1. Environment-Focused CorporateSocial
Responsibility (CSR):-
This type of CSR focuses on reducing detrimental effects of
the corporation’s operations on the environment. The
corporation innovates in its manufacturing stage to
reduce the production of environment harming by-
products.It also promotes the useofnon-renewable
energy sources to prevent harm caused to the
environment by burning of fossil fuels.
2. Community-Based CorporateSocial Responsibility
(CSR):-
The corporation joins hands with other organizations
(usually Non-Profit ones) to ensure the welfare of a local
community’s people. These organizations either fund or
receivefundingfromcorporationstoperformtasksthat can
improve the living conditions of the community’s people.
3. Human Resource(HR)-Based CorporateSocial
Responsibility (CSR):-
Corporationsfocuson the well-being of their own staff and
improvetheir living conditions. The companies may extend
compassionate leaves like paternity leaves so that the
employee can look after his new-born. They can also
provide medical insurance to their employees to take care
of accidents caused due to occupational hazards.
4. Charity Based CorporateSocial Responsibility (CSR):-
In a charity-based CSR, corporations donate to
organizations or individuals (usually through a charity
partner) to improve their financial condition and for their
general upliftment. This is the most common form of a CSR
activity. Most corporationsprovidedirect financial support
to organizationsor individualswho requiresuch assistance.
The Business Benefits of CSR
1. Win new business
2. Increase customer retention
3. Develop and enhance relationships with
customers, suppliers and networks
4. Attract, retain and maintain a happy workforce
and be an Employer of Choice
5. Save money on energy and operating costs and
manage risk
6. Differentiate yourself from your competitors
7. Generate innovation and learning and enhance
your influence
8. Improve your business reputation and standing
9. Provide access to investment and funding
opportunities
10. Generate positive publicity and media
opportunities due to media interest in ethical
business activities
THE PYRAMID OF CORPORATESOCIAL RESPONSIBILITY
THE PYRAMID OF CORPORATESOCIAL RESPONSIBILITY
• Economic Responsibilities
1. Business organizationswerecreated as economic entitiesdesigned
to providegoodsand services to societal members.
2. The profit motivewas established as the primary incentivefor
entrepreneurship.
3. Business organization wasthebasic economic unit in our society. As
such, itsprincipal rolewas to producegoods and services that
consumers needed and wanted and to make an acceptableprofit in the
process.
4. At some point the idea of theprofit motivegot transformed into a
notion of maximumprofits, and this has been an enduring valueever
since.
• Legal Responsibilities
1. Society hasnot only sanctioned business to operateaccording to the
profit motive;at the same timebusiness is expected to comply with the
laws and regulationspromulgated by federal, state, and local
governmentsas theground rules under which business must operate.
2. As a partial fulfilment of the"social contract"between business and
society firms are expected to pursue their economic missions within the
framework of the law.
3. Legal responsibilitiesreflect a view of "codified ethics"in the sense
that they embody basic notionsof fair operationsas established by our
lawmakers.
4. They are depicted as the next layer on the pyramid to portray their
historical development, but they areappropriately seen as coexisting
with economic responsibilitiesasfundamental preceptsof the free
enterprisesystem.
• Ethical Responsibilities
1. Although economic and legal responsibilitiesembody ethical norms
about fairness and justice, ethical responsibilitiesembracethose
activitiesand practicesthat areexpected or prohibited by societal
members even though they are not codified into law.
2. Ethical responsibilitiesembody those standards, norms, or
expectationsthat reflect a concern for what consumers, employees,
shareholders, and the community regard asfair, just, or in keeping
with the respect or protection of stakeholders'moral rights.
• Philanthropic Responsibilities
1. Philanthropy encompassesthose corporateactionsthat arein
response to society’sexpectation that businesses be good corporate
citizens.
2. This includesactively engaging in acts or programsto promote
human welfareor goodwill.
Need for CSR
• To fulfil long run self-interest of the organisations.
• To establish a better public image.
• To avoid misuse of resources.
• To minimizeenvironmental damage.
• For economic and social welfareof the community.
Importance of CSR
• The importanceof CSR increases with globalization asboth investors
and customershave become very sensitiveto societal and
environmental issues.
• CSR helps business organisationsto:
 Impulse their relationship with local communities.
 Increase the branding of theorganisation.
 Building a good corporateimagefor themselves.
• CSR minimizesthenegativeimpact of business activitiesand create
wealth and valuefor shareholdersand community as a whole.
CSR Involves
• Conducting businessin an ethical way and in the interest of wider
community.
• Responding positively to emerging societal prioritiesand
expectations.
• Being a good citizen in the community.
• Balancing shareholder interestsagainst theinterest of wider
community.
3 P’s of CSR
Economic Responsibilitiesof Corporations
• Financial profit, economic growth and asset creation.
• Economic impact through businessprocesses such as:
 Outsourcing
 Knowledge innovation
 Social investments
• Monetary support for NGOs.
Social Responsibilitiesof Corporations
• Abolish slavery, forced and child labour.
• Provideequal opportunitiesand vocational training/guidance.
• Freedomof expression, thought and religion.
• Right to Privacy and Family Life.
• Right to takepart in political life.
Environmental Responsibilitiesof Corporations
• Use and handling of genetically modified organisms.
• Minimizing theGreenhousegas emissions & Global warming.
• Treatment and reduction of waste water.
• Soil and water contamination.
• Recycling and reuse of materials.
• Protection of Forest resources.
Examples of CSR:-
1. StarbucksCoffee: -
Sincethe beginning of itsexistence in 1971, StarbucksCoffeehas always
focused on ethical and social responsibilities. Starbucksaimsat creating a
product that isnot only beneficial to its customers, but also to the
environment. With thestart of the C.A.F.E. program, Starbuckshasset
guidelinesto increaseproduct quality, social and economic responsibility, and
environmental management. Partnering with EthosWater, Starbucksis
helping bring clean water to over one billion peoplewho don’t have access to
it. What separates Starbucksfromitscompetitorsis that they focus on
society before themselves. Giving back to the community isa great factor to
why thebrand is so well known. It goes to show that companies with great
giving programsare valued more than ones that don’t.
2. BP: -
 In 2005 BP announced an $8 billion investment in ‘alternative energy’.
 The firm spent hundreds of millions of dollars in various ‘green’ campaigns.
 BP ran many ads talking about your carbon footprint & alternative energy.
 in 2007 the firm won an award from the American Marketing Association for its
advertising effectiveness.
 in 2009 Greenpeace awarded BP the Emerald Paintbrush award for Greenwashing.
------------0-----------

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Training and development, and performance management process in an organization

  • 1. Concept of Training and Development Process in Corporate Organization Training is defined by Wayne Cascio as “training consistsof planed programs undertaken to improveemployee knowledge, skills, attitude, and social behaviour so that the performanceof the organization improves considerably.”Training isnormally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middlemanagement staff it is called as training and for senior level it is called managerial development program/executivedevelopment program/development program. Objectives of training and development The purpose of training and development canbe explainedas follows – 1. Improving quality of work force: - Training and development help companies to improvethe quality of work doneby their employees. Training programsconcentrateon specific areas. There by improving thequality of work in that area. 2. Enhance employeegrowth: - Every employeewho takes development programbecomes better at his job. Training providesperfection and required practice, therefore employee’s area ableto develop them professionally. 3. Preventsobsolescence: - Through training and development, theemployee is up to date with new technology and the fear of being thrown out of the job is reduced 4. Assisting new comer: - Training and development programs greatly help new employees to get accustomed to new methods of working, new technology, thework cultureof the company etc. 5. Bridging thegap between planning and implementation: -
  • 2. Plans made by companiesexpect people to achievecertain targetswithin certain timelimit with certain quality for thisemployeeperformancehas to be accurateand perfect. Training helps in achieving accuracy and perfection. 6. Health and safety measures: - Training and development programclearly identifiesand teaches employees about the different risk involved in their job, the different problemsthat can arise and how to prevent such problems. This helps to improvethe health and safety measures in thecompany. Methods of training and development 1. On the job training method: - In this method workers who have to be trained are taken to thefactory, divided into groupsand one superior is allotted to every group. This superior or supervisor first demonstrateshow the equipment must be handled, and then the worker is asked to repeat whatever he has observed in the presence of the supervisor. This method makes it easy for the employee to learn the detailsabout specific equipment. Once the worker studies the first equipment thoroughly thesupervisor moves on to the next equipment and so on. 2. Apprenticeship training: - In this method both theory and practical session are conducted. The employee is paid a stipend until he completestraining. Thetheory sessions give theoretical information about theplant layout, thedifferent machines, their parts and safety measures etc. The practical sessionsgive practical training in handling theequipment. The apprenticemay or may not be continued on the job after training. 3. Vestibuletraining: - In this method of training an atmospherewhich is very similar to the real job atmosphere is created. The surroundings, equipment, noise level will be similar to the real situation. When an employee is trained under such conditionshe gets an idea about what the real job situation will be like. Similarly, when heactually startsdoing thejob he will not
  • 3. feel out of place. This method is used to train pilotsand astronauts. In some placesgraphicsare also used to createthe artificial surroundings. This method involvesheavy investment. 4. Job rotation: - In this method the person is transferred fromone equipment to the other for a fixed amount of time until heis comfortablewith all the equipment. At the end of the training theemployeebecomes comfortablewith all theequipment. He is then assigned a specific task. 5. Classroommethod: - In this method the training isgiven in the classroom. Video, clippings, slides, charts, diagramsand artificial modulesetc. areused to give training. Advantages of training and development  The following are theadvantagesof training programto the company: - 1. Increase in efficiency of worker: - Training programscan help workers to increase their efficiency levels, improvequality and thereby increasesales for the company. 2. Reduced supervision: - When workers have been formally trained they need not be supervised constantly. Thisreduces the work load on the supervisor and allowshim to concentrateon other activitiesin thefactory. 3. Reduction in wastage: - The amount of material wasted by a trained worker is negligibleas compared to theamount of material wasted by an untrained worker. Due to thisthe company is able to reduceits cost its cost of production. 4. Less turnover of labour: - One of theadvantages of thetraining programisthat it increases the confidenceof employees and providesthemwith better career opportunities. Dueto this employeegenerally do not leave the company. There by reducing labour turnover.
  • 4. 5. Training helps new employees: - A person, who is totally new to thecompany, has no idea about its working. Training helpshim to understand what is required from him and helps himto adjust to thenew environment. 6. Union management relations: - When employees are trained and get better career opportunities. The union startshaving a possible attitudeabout themanagement. They feel that the management is genuinely interested in workers development. This improves union management relations.  The following are theadvantagesof training programto the employee:- 1. Better career opportunities: - Training programsprovidethelatest information, developstalent and due to this the employeeis in a position to get better jobs in the same company or other companies. 2. High rewards: - Effective training programs result in improved performance. When performance appraisal is done excellent performance from the employee is rewarded by giving him incentives and bonus. 3. Increased motivation: - Employees who have been trained are generally moreconfident as compared to others. Sincetheir efforts will be rewarded in future they arevery much interested in improving their performance. Therefore, we can say that their motivation levelsarevery high. 4. Group efforts: - Training programsare not only technical programsbut are also conducted in areas like conflict management, group dynamics (formal and informal groups), behavioural skills, stress management etc. thisenables employees to put in group effort without facing problemsthat groupsnormally face. In other words, training teachespeopleto work in a group. 5. Promotion: - People who attend training programslearn fromthemand improve themselves are generally considered for promotion. Thus, training increases chances of promotion.
  • 5. Evaluation of training and development program Effectiveness of training programsareconstantly evaluated by the company to find if the money, they have invested has been spend properly or not. Training programscan be evaluated by asking following questions. a) Has change occurred after training? b) Is the change due to training? c) Is the change positiveor negative? d) Will the changecontinuewith every training program?  A training programshould givefollowing resulting changes - 1. Reaction: - Reaction refersto attitudeof employee about thetraining, whether the employee considerstraining to be +ve or –ve one. If reaction is+ve then people have accepted the programand changes will be possible. 2. Learning: - Another method of judging effectivenessis to identify levelsof learning i.e. howmuch the peoplehave learnt during the training. Thiscan be found out by trainersmark sheet, the report submitted by theemployee, and actual performance. 3. Behaviour: - The HR department needs to understand behaviour of the employees, to understand theeffectiveness of training. The behavioural changecan be seen in how theperson interactswith juniors, peer groupsand seniors. They mark change in behaviour and informthe HR department of thesuccess of training program. 4. Result: - Results provided by employee in monetary termsalso determines effectiveness of training programi.e. employeesuccess in handling theproject, thegroup performancebefore and after
  • 6. training etc. Concept of Performance Management and Its Relevance in an Organization Introduction: - Performancemanagement is the improvement of theoverall performanceof theindividual member or staff so by thisthe organization can improveitsown performance. Or we can say that managing performanceis theindividual performance managing in theorganization so by this the organization can be able to achieve its pre-settled goals. Definition of PerformanceManagement: - “A management process design to link theorganization’s objectiveswith those of the individual in such a way as to ensure that both individual and corporateobjectivearefor as possible met.” Objectivesof PerformanceManagement: - 1. To confirmtheservices of probationary employeesupon their completing theprobationary period satisfactorily 2. To check theeffective& efficiency of individuals, teams& organization 3. To effect promotionsbased on competenceand performance 4. To access the training and development needs of the employees 5. To decide upon the pay rise 6. PM can be used to determinewhether HR programmessuch as selection, training, and transfer havebeen effectiveor not. Performance Management includes…: - 1. Work plan:– A document that describesthe work to be completed by an employee within theperformancecycle, theperformance expected, and how theperformancewill be measured. 2. Correctiveaction plan:–
  • 7. A short-termaction plan that isinitiated when an employee’s performancefailsto meet expectations. Itspurpose is to achievean improvement in performance. 3. Individual development plan:– An action plan for enhancing an employee’s level of performancein order to excel in the current job or preparefor new responsibilities. 4. Performanceappraisal: – A confidential document that includestheemployee’s performanceexpectations, a summary of the employee’s actual performancerelativeto those expectations, an overall rating of the employee’s performance, and the supervisor’s and employee’s signatures. 5. Performancedocumentation: – A letter, memo, completed form, or note on which the supervisor indicatesthe extent to which the employee is currently meeting expectationsand providesevidenceto support that conclusion. 6. Fair appraisal: – Appraising employeesin a manner that accurately reflects how they performed relativeto theexpectationsdefined in their work plan and in a manner that is not influenced by factorsirrelevant to performance. Highlightsof the system: - 1. The appraiser and the appraisejointly set the Key Result Areas (KRA’s) and assign mutually agreed weightage expressed as a percentage. 2. Simplemathematical relationship between set weightage and accomplishment givesa final numerical scoreon KRA’s. 3. To evaluateall management personnel on company values and leadership attributesa new section has been added entitled “Values in Action”. What is a key result area? 1. A KRA refers to a target that needs to be achieved by the appraisein a given time.
  • 8. 2. KRA’sare the set of performanceexpectationsfromthe appraise. 3. The focus is on tangibleoutputs. However, thisdoes not mean that tasks that have a qualitativeoutput cannot form a KRA. 4. The focus is on tangibleoutputs. However, this does not mean that tasks that have a qualitativeoutput cannot form a KRA. Setting KRA in case of a Functional Reporting Relationship 1. Functional reporting caseswill requireinput fromthe functional superior in setting KRAsfor theappraise. 2. The appraiser, the appraise and the functional superior will have to mutually agreeupon the KRAsfor the appraise. 3. In case of a disagreement, it will be the functional superior’sresponsibility to convincetheadministrative superior to reach an agreement on the KRAs and communicatethesame to the appraise. 4. In some cases, functional goalscould be super-ordinate to business goals. Components of Performance Management 1. PerformanceStandards- establishment of organizational or systemperformancestandards, targetsand goals and relevant indicatorsto improve public health practice. 2. PerformanceMeasures- application and use of performanceindicatorsand measures. 3. Reporting of Progress - documentation and reporting of progress in meeting standardsand targetsand sharing of such information through feedback. 4. Quality Improvement - establishment of a program or process to manage change and achieve quality improvement in public health policies, programsor infrastructurebased on performancestandards, measurements and reports.
  • 9. Importance of Performance Management 1. A PerformanceManagement Systemenables a business to sustain profitability and performanceby linking theemployees' pay to competency and contribution. 2. It provides opportunitiesfor concerted personal development and career growth. 3. It brings all the employees under a single strategic umbrella. 4. Most importantly, it givessupervisorsand subordinatesan equal opportunity to express themselves under structured conditions. 5. Organizationscan effectively managethe performanceappraisal processwith our online performancemanagement system. 6. It calls for a high level of co-ordination, channelled information flow, and timely review. Concept of Corporate Social Responsibility Definition of CSR:- Corporatesocial responsibility, often shortened “CSR,"is a corporation'sinitiativesto measureand take responsibility for thecompany's effects on environmental and social wellbeing. The term generally appliesto efforts that go beyond what may be required by regulatorsor environmental protection groups. CSR may also be referred to as "corporatecitizenship"and can involveincurring short-termcoststhat do not provide an immediatefinancial benefit to thecompany, but instead promotepositivesocial and environmental change. Types of CSR: - There are four types of CSR according to its beneficiaries: -
  • 10. 1. Environment-Focused CorporateSocial Responsibility (CSR):- This type of CSR focuses on reducing detrimental effects of the corporation’s operations on the environment. The corporation innovates in its manufacturing stage to reduce the production of environment harming by- products.It also promotes the useofnon-renewable energy sources to prevent harm caused to the environment by burning of fossil fuels. 2. Community-Based CorporateSocial Responsibility (CSR):- The corporation joins hands with other organizations (usually Non-Profit ones) to ensure the welfare of a local community’s people. These organizations either fund or receivefundingfromcorporationstoperformtasksthat can improve the living conditions of the community’s people. 3. Human Resource(HR)-Based CorporateSocial Responsibility (CSR):- Corporationsfocuson the well-being of their own staff and improvetheir living conditions. The companies may extend compassionate leaves like paternity leaves so that the employee can look after his new-born. They can also provide medical insurance to their employees to take care of accidents caused due to occupational hazards. 4. Charity Based CorporateSocial Responsibility (CSR):- In a charity-based CSR, corporations donate to organizations or individuals (usually through a charity partner) to improve their financial condition and for their general upliftment. This is the most common form of a CSR activity. Most corporationsprovidedirect financial support to organizationsor individualswho requiresuch assistance. The Business Benefits of CSR 1. Win new business 2. Increase customer retention
  • 11. 3. Develop and enhance relationships with customers, suppliers and networks 4. Attract, retain and maintain a happy workforce and be an Employer of Choice 5. Save money on energy and operating costs and manage risk 6. Differentiate yourself from your competitors 7. Generate innovation and learning and enhance your influence 8. Improve your business reputation and standing 9. Provide access to investment and funding opportunities 10. Generate positive publicity and media opportunities due to media interest in ethical business activities THE PYRAMID OF CORPORATESOCIAL RESPONSIBILITY THE PYRAMID OF CORPORATESOCIAL RESPONSIBILITY • Economic Responsibilities 1. Business organizationswerecreated as economic entitiesdesigned to providegoodsand services to societal members.
  • 12. 2. The profit motivewas established as the primary incentivefor entrepreneurship. 3. Business organization wasthebasic economic unit in our society. As such, itsprincipal rolewas to producegoods and services that consumers needed and wanted and to make an acceptableprofit in the process. 4. At some point the idea of theprofit motivegot transformed into a notion of maximumprofits, and this has been an enduring valueever since. • Legal Responsibilities 1. Society hasnot only sanctioned business to operateaccording to the profit motive;at the same timebusiness is expected to comply with the laws and regulationspromulgated by federal, state, and local governmentsas theground rules under which business must operate. 2. As a partial fulfilment of the"social contract"between business and society firms are expected to pursue their economic missions within the framework of the law. 3. Legal responsibilitiesreflect a view of "codified ethics"in the sense that they embody basic notionsof fair operationsas established by our lawmakers. 4. They are depicted as the next layer on the pyramid to portray their historical development, but they areappropriately seen as coexisting with economic responsibilitiesasfundamental preceptsof the free enterprisesystem. • Ethical Responsibilities 1. Although economic and legal responsibilitiesembody ethical norms about fairness and justice, ethical responsibilitiesembracethose activitiesand practicesthat areexpected or prohibited by societal members even though they are not codified into law. 2. Ethical responsibilitiesembody those standards, norms, or expectationsthat reflect a concern for what consumers, employees, shareholders, and the community regard asfair, just, or in keeping with the respect or protection of stakeholders'moral rights. • Philanthropic Responsibilities
  • 13. 1. Philanthropy encompassesthose corporateactionsthat arein response to society’sexpectation that businesses be good corporate citizens. 2. This includesactively engaging in acts or programsto promote human welfareor goodwill. Need for CSR • To fulfil long run self-interest of the organisations. • To establish a better public image. • To avoid misuse of resources. • To minimizeenvironmental damage. • For economic and social welfareof the community. Importance of CSR • The importanceof CSR increases with globalization asboth investors and customershave become very sensitiveto societal and environmental issues. • CSR helps business organisationsto:  Impulse their relationship with local communities.  Increase the branding of theorganisation.  Building a good corporateimagefor themselves. • CSR minimizesthenegativeimpact of business activitiesand create wealth and valuefor shareholdersand community as a whole. CSR Involves • Conducting businessin an ethical way and in the interest of wider community. • Responding positively to emerging societal prioritiesand expectations. • Being a good citizen in the community. • Balancing shareholder interestsagainst theinterest of wider community.
  • 14. 3 P’s of CSR Economic Responsibilitiesof Corporations • Financial profit, economic growth and asset creation. • Economic impact through businessprocesses such as:  Outsourcing  Knowledge innovation  Social investments • Monetary support for NGOs. Social Responsibilitiesof Corporations • Abolish slavery, forced and child labour. • Provideequal opportunitiesand vocational training/guidance. • Freedomof expression, thought and religion. • Right to Privacy and Family Life. • Right to takepart in political life. Environmental Responsibilitiesof Corporations • Use and handling of genetically modified organisms. • Minimizing theGreenhousegas emissions & Global warming. • Treatment and reduction of waste water. • Soil and water contamination. • Recycling and reuse of materials.
  • 15. • Protection of Forest resources. Examples of CSR:- 1. StarbucksCoffee: - Sincethe beginning of itsexistence in 1971, StarbucksCoffeehas always focused on ethical and social responsibilities. Starbucksaimsat creating a product that isnot only beneficial to its customers, but also to the environment. With thestart of the C.A.F.E. program, Starbuckshasset guidelinesto increaseproduct quality, social and economic responsibility, and environmental management. Partnering with EthosWater, Starbucksis helping bring clean water to over one billion peoplewho don’t have access to it. What separates Starbucksfromitscompetitorsis that they focus on society before themselves. Giving back to the community isa great factor to why thebrand is so well known. It goes to show that companies with great giving programsare valued more than ones that don’t. 2. BP: -  In 2005 BP announced an $8 billion investment in ‘alternative energy’.  The firm spent hundreds of millions of dollars in various ‘green’ campaigns.  BP ran many ads talking about your carbon footprint & alternative energy.  in 2007 the firm won an award from the American Marketing Association for its advertising effectiveness.  in 2009 Greenpeace awarded BP the Emerald Paintbrush award for Greenwashing. ------------0-----------