Unit -1 Introduction

Human Resource Management

SWATI A VISPUTE, PHD

DR. SWATI A VISPUTE

Contents
Introduction and importance
Evolution of HRM
Difference between Personnel Management & HRM
Role of HR Manager
Duties, Responsibilities & Challenges of HR managers
Evaluating various HR functions
Basic Model of HR

DR. SWATI A VISPUTE

What Is Human Resource Management (HRM)?

•The process of acquiring, training,

appraising, and compensating
employees, and of attending to
their labour relations, health and
safety, and fairness concerns.
•‘Hard’ and ‘Soft’ form of HRM

DR. SWATI A VISPUTE

 Why is it Important to Study HRM?
Personnel Mistakes
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your firm in court because of discriminatory actions
Have your firm cited for unsafe practices and accidents
Have some employees think their salaries are unfair and inequitable
relative to others in the organization
Allow a lack of training to undermine your department’s
effectiveness
Commit any unfair labor practices

DR. SWATI A VISPUTE

 Evolution of HRM
Developmental
Period Outlook Emphasis Status
Status

Pragmatism of Statutory, welfare

1920-1930 Beginning Clerical
capitalist paternalism

Struggling for
1940-1960 Technical, legalistic Introduction of techniques Administrative
recognition

Professional, Regulatory, conforming,

Achieving
1970-1980 legalistic, imposition of standards on Managerial
sophistication
impersonal other functions

Human values, productivity

1990s Promising Philosophical Executive
through people

DR. SWATI A VISPUTE

Evolution of HRM

DR. SWATI A VISPUTE

Difference between Personnel Management & HRM
Kay Aspects Personnel Management HRM
Belief and Assumptions
Contract Careful delineation of written Aim to go beyond written contract – go by the
contract spirit of the contract
Rules Thrust on devising clear rules ‘can do’ attitude – impatience with roles
Guide to Procedures Business and customer needs, flexibility,
management action commitment
Behaviors In line with customs and norms In line with values and mission
Managers Task Monitoring Nurturing
Strategic Aspect
Key relations Labor management Customers
Initiatives Piecemeal Integrated
Corporate plan Marginalised Central
Speed of decisions Slow Fast
DR. SWATI A VISPUTE
Difference between Personnel Management & HRM
Kay Aspects Personnel Management HRM
Line Management
Management role Transactional Transformational Leadership
Key Managers P&IR expert Line managers
Skills Negotiation Facilitation
Key Levers
Cultural and structural issues and personnel
Attention Personnel procedures
strategies
Selection Marginal importance Integrated and key task
Pay Job evaluation Performance based
Communication Restricted flow / indirect Increased flow / direct
Job design Division of labour Team work
Conflict handling Temporary basis Managing culture and climate
Training &
Controlled access to courses Learning organizations
Development
DR. SWATI A VISPUTE
 The
Role of
HR
Evolved

DR. SWATI A VISPUTE

DR. SWATI A VISPUTE
Changing Roles of HR Management.

A day in the life of HR

DR. SWATI A VISPUTE

 HRM Processes / Functions
Acquisition

Fairness Training

Human
Resource
Management
Health and Safety (HRM) Appraisal

Labor Relations Compensation

DR. SWATI A VISPUTE

 Line and Staff
Aspects of HRM
Line Manager
Is authorized (has line
authority) to direct the
work of subordinates and
is responsible for
accomplishing the
organization’s tasks.
Staff Manager
Assists and advises line
managers.
Has functional authority to
coordinate personnel
activities and enforce
organization policies.
DR. SWATI A VISPUTE
 Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth
working relationships
1. Interpreting the firm’s policies and procedures
2. Controlling labor costs
3. Developing the abilities of each person
4. Creating and maintaining department morale
5. Protecting employees’ health and physical condition
DR. SWATI A VISPUTE
Human Resource Managers’ Duties
Functions of
HR Managers

Line Function Coordinative Staff Functions

Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy

DR. SWATI A VISPUTE

Human Resources Organization Chart for a Large Organization
 Human Resource Specialties

Recruiter

Labor relations
specialist EEO coordinator
Human
Resource
Specialties
Training specialist Job analyst

Compensation
manager

DR. SWATI A VISPUTE

New Approaches to Organizing HR
New HR Services Groups

Transactional HR Corporate Embedded Centers of

group HR group HR unit Expertise

DR. SWATI A VISPUTE

Randall MacDonald, IBM s senior vice president of human resources, noted that the
traditional human resource organization often isolates HR functions into silos such as
recruitment, training, and employee relations. He says this silo approach often means
there s no one team of human resource specialists focusing on the needs of specific
groups of employees.
MacDonald therefore reorganized IBMs human resource function. He segmented
IBMs 330,000 employees into three sets of customers : executive and technical
employees, managers, and rank and file. Separate human resource management
teams (consisting of recruitment, training, and compensation specialists, for instance)
now focus on serving the needs of each employee segment. These specialized teams
help ensure that the employees in each segment get precisely the talent, learning,
and compensation they require to support IBMs needs.

IBM EXAMPLE

DR. SWATI A VISPUTE

 Trends Shaping HRM / Challenges of HR
Manager
Globalization
and Competition
Trends

Indebtedness
(“Leverage”) and Technological
Deregulation Trends
Trends in HR
Management
Workforce and
Trends in the
Demographic
Nature of Work
Trends

Economic
Challenges and
Trends

DR. SWATI A VISPUTE

Trends Shaping Human Resource Management

DR. SWATI A VISPUTE

Trends in the Nature of Work

Changes in How We Work

High-Tech Service Knowledge Work

Jobs Jobs and Human Capital

DR. SWATI A VISPUTE

Workforce and Demographic Trends
Demographic Trends

“Millennials”
Trends Affecting
Human Resources
Retirees

Nontraditional Workers

DR. SWATI A VISPUTE

 Important Trends in HRM
The New HR
Managers

Strategic High-Performance
HRM Human Work Systems
Resource
Management
Evidence-Based Trends Managing
HRM Ethics

HR
Certification

DR. SWATI A VISPUTE

Meeting Today’s HRM Challenges
The New Human Resource
Managers

Acquire broader
Find new ways to
Focus more on business
provide
“big picture” knowledge and
transactional
(strategic) issues new HRM
services
proficiencies

DR. SWATI A VISPUTE

 Some Technological Applications to Support HR
Technology How Used by HR

Application service providers (ASPs) ASPs provide software application, for instance, for processing employment
and technology outsourcing applications. The ASPs host and manage the services for the employer from their
own remote computers

Web portals Employers use these, for instance, to enable employees to sign up for and
manage their own benefits packages and to update their personal information

Streaming desktop video Used, for instance, to facilitate distance learning and training or to provide
corporate information to employees quickly and inexpensively

Internet- and network-monitoring Used to track employees’ Internet and e-mail activities or to monitor their
software performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously obtain
signatures for applications and record keeping

Electronic bill presentment Used, for instance, to eliminate paper checks and to facilitate payments to
and payment employees and suppliers

Data warehouses and computerized Help HR managers monitor their HR systems. For example, they make it easier to
analytical programs assess things like cost per hire, and to compare current employees’ skills with the
firm’s projected strategic needs

DR. SWATI A VISPUTE

High-Performance Work Systems
Increase productivity and performance by:
◦ Recruiting, screening and hiring more effectively
◦ Providing more and better training
◦ Paying higher wages
◦ Providing a safer work environment
◦ Linking pay to performance

DR. SWATI A VISPUTE

 Evidence-Based HRM
Providing Evidence for
HRM Decision Making

Actual Existing Research

measurements data studies

DR. SWATI A VISPUTE

Managing Ethics
Ethics
◦ Standards that someone uses to decide what his
or her conduct should be
HRM-related Ethical Issues
◦ Workplace safety
◦ Security of employee records
◦ Employee theft
◦ Affirmative action
◦ Comparable work
◦ Employee privacy rights

DR. SWATI A VISPUTE

HR Certification
HR is becoming more professionalized.
Society for Human Resource Management (SHRM)
◦ SHRM’s Human Resource Certification Institute (HRCI)
◦ SPHR (Senior Professional in HR) certificate
◦ GPHR (Global Professional in HR) certificate
◦ PHR (Professional in HR) certificate

DR. SWATI A VISPUTE

HRM MODEL

Current Context Organizational Strategies and Organizational Culture:

(Political Climate, Gov’t Laws, Structure: Goals, Organizational Mission and Vision, Informal
Economy, etc.) chart Procedures

Human Resource Functions

Plan for Future Recruitment and Selection

Human Resource
Needs Policies

Training and Salary, Benefits, Bonus

Development System

Performance
Management

Review & Evaluation of Human

Resource Activities

DR. SWATI A VISPUTE

DR. SWATI A VISPUTE
Guest

DR. SWATI A VISPUTE

Warwick Model of HRM

DR. SWATI A VISPUTE

DR. SWATI A VISPUTE
Model by John Sorey
John Storey emerged to be one of the strongest proponents of HRM as a completely different
discipline from the preceding disciplines.
He believed that HRM is a holistic approach with a set of interrelated policies with an
ideological and philosophical underpinning.
Because of these ideological and philosophical aspects, HRM does not only stand distinctively
outstanding from TPM (Traditional Personnel Management) but also emerges to be a much
more humane approach to employment management.
The model by John Storey is based on four aspects.
◦ Beliefs & assumptions
◦ Strategic qualities
◦ Role of Line managers
◦ Key levers (culture management)

DR. SWATI A VISPUTE

Questions
What is HRM? Why is it important to study HRM?
Illustrate the evolution of HRM.
Distinguish between Personnel Management and HRM.
Explain the role of HR Manager.
Explain various trends shaping HRM or Challenges of HRM.
Explain HRM models.

DR. SWATI A VISPUTE

MANPOWER PLANNING

Swati A Vispute, PhD

 CONTENTS

• Objectives of Manpower Planning

• Estimating Manpower requirements
• Recruitment & selection
• Succession Planning
• Career Planning
• Downsizing & Restructuring
 MANPOWER PLANNING

• Manpower Planning is essentially the process of getting the number of

qualified employees and seek to place the right employees in the right job at
the right time, so that an organisation can meet its objectives.
CASE STUDY SITUATION
The president has called a meeting to get your feedback on Jack, a department manager. Jack is what some people call “from the old
school” of management. He is gruff, bossy, and often shows an “it’s my way or the highway” attitude. Jack is about five years from
retirement. Jack has a high turnover rate in his department. There have been several complaints on company surveys about him from
his department and from outside his department.
People have commented on the fact that Jack is “rude” during meetings and doesn’t let others contribute. There are times when he has
belittled people in meetings and in the hallway. He also talks about his staff “critically” or “negatively” to other managers.
But Jack also is a brilliantly talented person who adds a vast amount of needed knowledge and experience to the company. He is
extremely dedicated to the company and lets people know this by his arrival each day at 6:30 a.m. and his departure at 6:00 p.m. He
has been with the company for 32 years and he reports directly to the president. Jack has gone to the HR department and complained
that the people his supervisors hire are not a good fit for the company. The new employees don’t listen and they have a poor work
ethic. Jack feels that HR do a better job screening people.
• What suggestions do you have for the president on how to coach Jack and develop a personal improvement plan?
• What areas would you suggest be first on Jack’s improvement plan?
• What kind of timetable would you put in place?
• How about milestones and consequences?
• How should Jack be coached and by whom?
• Is it worth the effort, since he might be retiring soon?
• After introductions, the president will ask you for your “How to Coach Jack” plan.
• Each member of the team (individual) should contribute to the plan details.
 OBJECTIVES OF MANPOWER PLANNING

• Forecast personnel requirements

• Cope with change
• Use existing manpower productively
• Promote employees in a systematic manner
 THE RECRUITMENT AND SELECTION
PROCESS

1. Decide what positions to fill through personnel planning and forecasting.

2. Build a candidate pool by recruiting internal or external candidates.
3. Have candidates complete application forms and undergo initial screening
interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the supervisor and others
interview the candidates.
 Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
IBM has been transitioning from supplying mostly computers to supplying software
and consulting services. Therefore, in terms of IBMs strategic workforce needs, in
three years, 22 percent of our workforce will have obsolete skills. Of the 22 percent,
85 percent have fundamental competencies that we can build on to get them ready
for skills we’ll need years from now. The remaining 15% will either self-select out of
IBM or be let go. As at IBM, workforce and succession planning should entail thinking
through the skills and competencies the firm needs to execute its overall strategy. At
IBM, for instance, human resource executives review with finance and other
executives the personnel ramifications of their company’s strategic plans. In other
words, What sorts of skills and competencies will we need to execute our strategic
plans?
Linking Employer’s Strategy to Plans
 HUMAN RESOURCE PLANNING PROCESS

Plan of
Action
Demand
• External Forecast • Required • Surplus (VRS, restricted
• Internal • Quantitative • Available hiring, downsizing)
• Judgmental • Gap Analysis • Demand = Supply (No
action)
• Shortage of Manpower
Environmental RAG (Recruit, training etc.)
Scan Analysis
 FORECASTING PERSONNEL NEEDS
FORECASTING TOOLS
Quantitative Methods Judgemental Method

Ratios Managerial Judgement

• Bottom-up approach
• Top-down approach
Benchmarking / Thumb Delphi Technique
Rule
Scatter Plot Zero based forecasting
Trend Analysis
Computerised forecasts/
Simulation
Work Study
 QUANTITATIVE METHODS

• Ratios – two variables bear a direct relationship with each other.

• E.g. If it takes 30 employees to sell 300 units, so ratio is 1:10
• If u need to sell 600 units at 1:10 ration, 60 sales people required
• Benchmarking / Thumb Rule
• Many years of experience gives rise to benchmark
• International benchmark for HR in automated environment is 1:100
• So if employee strength is 5000 then 50 HR employees will be needed.
 Scatter Plot - Determining the Relationship Between
Hospital Size and Number of Nurses
Hospital Size Number of
(Number Registered
of Beds) Nurses
200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

Note: After fitting the line,

you can project how many
employees are needed,
given your projected volume.
 QUANTITATIVE METHODS

• Trend Analysis
• Collecting information and spot a pattern or trend in information
• If every year number of employees increases by 5%, then next year also you hire 5%
more employees than previous year.
• Computerized Forecasts / Simulation
• Software that estimates future staffing needs by:
• Projecting sales, volume of production, and
personnel required to maintain different volumes of
output.
• Forecasting staffing levels for direct labor, indirect
staff, etc..
• Creating metrics for direct labor hours and three
sales projection scenarios—minimum, maximum,
and probable.
 QUANTITATIVE METHODS

• Work study technique

• Apply work measurement to calculate how long operations should take
and the number of people required for the same.
• Time and motion study by Frederick Taylor and Frank and Lillian
Gilbreth
 JUDGEMENTAL METHODS

• Managerial Judgement – seeks opinions of manager, functional,

departmental heads, subject matter experts etc.
• Bottom-up approach
• Top-down approach
• Delphi Technique
• Experts take turns at presenting their forecast and assumptions to the
others, who then make revisions in their own forecasts.
• Zero based budgeting
• Managers build a budget from the ground up, building case for their
manpower requirements as if no baseline existed.
 DRAWBACKS TO TRADITIONAL FOREC ASTING
TECHNIQUES

• They focus on projections and historical relationships.

• They do not consider the impact of strategic initiatives on future staffing levels.
• They support compensation plans that reward managers for managing ever-larger staffs.
• They “bake in” the idea that staff increases are inevitable.
• They validate and institutionalize present planning processes and the usual ways of
doing things.
• Best Buy used talent analytics to determine that a 0.1% increase in
employee engagement led to a more than $100,000 rise in a Best Buy
store annual operating income.
• By monitoring employee satisfaction levels, Cisco was able to improve its
employee retention rate from 65% to 85%, saving the company nearly
$50 million in recruitment, selection, and training costs.
• Dow Chemical uses a computerized model that predicts future required
headcount for each business unit based on predictions for things like
industry trends.
 SUPPLY FORECAST

• Estimating likely supply of both inside and outside organization

• determining which current employees might be qualified for the projected
openings
• Methods (Internal Supply):
• Markov Analysis
• Replacement Charts
• Skills Inventories
 FOREC ASTING THE SUPPLY OF INSIDE C ANDIDATES

• Markov Analysis
• Helps to predict internal employee movement from one year to another by identifying percentages of
employees who remain in their jobs, get promoted or demoted, transfer, and exit out of the organization.
2019 Programme Assistant Shift Team CSRs Exit
2018 Manager Manager Supervisor Leader
Programme Manager 90% 10%
(n = 12) 11 1
Assistant Manager 11% 83% 6%
(n = 36) 4 30 2
Shift Supervisor 11% 66% 8% 15%
(n = 96) 11 63 8 14
Team Leader 10% 72% 2% 16%
(n = 288) 23 207 6 46
CSRs 6% 74% 20%
(n = 1440) 86 1066 288
Forecasted Supply 15 41 92 301 1072 351
 REPLACEMENT CHART

• Replacement chart
identifies possible
replacement for
positions which may
be rendered vacant
or open
 SKILL INVENTORIES

• Skill inventory is a compilation of the skills, education and experiences of current

employees
• Obtained from HRIS
• Helps in recruiting, training, and succession planning
• Example
 EXTERNAL LABOUR SUPPLY

Depends on :
• Economic conditions
• Unemployment rates
• College and high school graduation rates in the relevant labor market
• Net migration in or out of the area
• Relative skill levels of potential candidates in the labor market
• Competition for labor in the labor market
• Changes in the skill requirements of the organization’s potential job openings
 ACTIONS AFTER DEMAND AND SUPPLY
FORECASTING

• Recruitment
• Succession Planning
• Career Planning
• Downsizing / Restructuring
 SUCCESSION PLANNING

• Succession planning is a systematic approach to:

• Building a leadership pipeline/ talent pool to ensure leadership
opportunity
• Develop potential successions in ways that best fit their strengths
• Identifying the best candidates for categories of positions
• Concentrating resources on the talent development process.
• Succession Vs. Replacement Planning
 CAREER PLANNING

• Career planning is a process by which one selects career goals and

the path to these goals.
• Career development is those personal improvements one
undertakes to achieve a personal career plan.
 NEED OF CAREER PLANNING

• To attract or retain competent employee

• To provide suitable promotional opportunities
• To enable employees to take future challenges
COMPONENTS OF CAREER PLANNING
 CAREER ANCHORS

• Career Anchors – include talents, motives, values and

attitudes which give stability and direction to a person’s
career – it is the ‘motivator’ or ‘driver’ of that person.
• Know your career anchors

Edgar Schein
 DOWNSIZING / RESTRUCTURING

• Downsizing is the action of permanently reducing the number of employees

and/or divisions and department in the company in order to increase profit
• Restructuring is the act of changing the whole organizational structure of the
whole company.
 QUESTIONS

• What is manpower planning? Explain manpower planning process in detail.

• Explain objectives / need of human resource planning in any organization.
• What the quantitative tools used for demand forecasting of personnel requirements? Explain briefly.
• Briefly explain judgemental methods of personnel demand forecasting.
• Write a note on
• Markov Analysis
• Replacement charts
• Skills Inventory
• What are the actions taken by organization after manpower planning process? Explain.
• Write a note on Career anchors.
• Differentiate between Downsizing and Restructuring.
Manpower Planning
Swati A Vispute, PhD
Contents

• Objectives of Manpower Planning

• Estimating Manpower requirements
• Recruitment & selection
• Succession Planning
• Career Planning
• Downsizing & Restructuring
 Manpower Planning

• Manpower Planning is essentially the process of getting the number of

qualified employees and seek to place the right employees in the right job
at the right time, so that an organisation can meet its objectives.
CASE STUDY SITUATION
The president has called a meeting to get your feedback on Jack, a department manager. Jack is what some people call “from the old
school” of management. He is gruff, bossy, and often shows an “it’s my way or the highway” attitude. Jack is about five years from
retirement. Jack has a high turnover rate in his department. There have been several complaints on company surveys about him from
his department and from outside his department.
People have commented on the fact that Jack is “rude” during meetings and doesn’t let others contribute. There are times when he
has belittled people in meetings and in the hallway. He also talks about his staff “critically” or “negatively” to other managers.
But Jack also is a brilliantly talented person who adds a vast amount of needed knowledge and experience to the company. He is
extremely dedicated to the company and lets people know this by his arrival each day at 6:30 a.m. and his departure at 6:00 p.m. He
has been with the company for 32 years and he reports directly to the president. Jack has gone to the HR department and complained
that the people his supervisors hire are not a good fit for the company. The new employees don’t listen and they have a poor work
ethic. Jack feels that HR do a better job screening people.
• What suggestions do you have for the president on how to coach Jack and develop a personal improvement plan?
• What areas would you suggest be first on Jack’s improvement plan?
• What kind of timetable would you put in place?
• How about milestones and consequences?
• How should Jack be coached and by whom?
• Is it worth the effort, since he might be retiring soon?
• After introductions, the president will ask you for your “How to Coach Jack” plan.
• Each member of the team (individual) should contribute to the plan details.
 Objectives of Manpower Planning

• Forecast personnel requirements

• Cope with change
• Use existing manpower productively
• Promote employees in a systematic manner
The Recruitment and Selection Process

1. Decide what positions to fill through personnel planning and forecasting.

2. Build a candidate pool by recruiting internal or external candidates.
3. Have candidates complete application forms and undergo initial screening
interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the supervisor and others
interview the candidates.
 Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
IBM has been transitioning from supplying mostly computers to supplying software
and consulting services. Therefore, in terms of IBMs strategic workforce needs, in
three years, 22 percent of our workforce will have obsolete skills. Of the 22 percent,
85 percent have fundamental competencies that we can build on to get them ready
for skills we’ll need years from now. The remaining 15% will either self-select out of
IBM or be let go. As at IBM, workforce and succession planning should entail thinking
through the skills and competencies the firm needs to execute its overall strategy. At
IBM, for instance, human resource executives review with finance and other
executives the personnel ramifications of their company’s strategic plans. In other
words, What sorts of skills and competencies will we need to execute our strategic
plans?
Linking Employer’s Strategy to Plans
 Human Resource planning process

Plan of
Action
Demand
• External Forecast • Required • Surplus (VRS, restricted
• Internal • Quantitative • Available hiring, downsizing)
• Judgmental • Gap Analysis • Demand = Supply (No action)
• Shortage of Manpower
(Recruit, training etc.)
Environmental RAG
Scan Analysis
Job Analysis, Job Evaluation
& Job Design
Swati A Vispute, PhD
Contents
• Job description & Job specification
• Job Evaluation- Meaning, Methods
• Job Design- Job Enlargement, Job Enrichment, Job Rotation
Job
• A group of homogeneous tasks related by similarity of functions.
When performed by an employee in an exchange for pay, a job
consists of duties, responsibilities, and tasks (performance elements)
that are (1) defined and specific, and (2) can be accomplished,
quantified, measured, and rated. From a wider perspective, a job is
synonymous with a role and includes the physical and social aspects
of a work environment. Often, individuals identify themselves with
their job or role (foreman, supervisor, engineer, etc.) and derive
motivation from its uniqueness or usefulness.
The Basics of Job Analysis: Terms
• Job Analysis
• The procedure for determining the duties and skill requirements of a job and
the kind of person who should be hired for it.
• Job Description
• A list of a job’s duties, responsibilities, reporting relationships, working
conditions, and supervisory responsibilities—one product of a job analysis.
• Job Specifications
• A list of a job’s “human requirements,” that is, the requisite education, skills,
personality, and so on—another product of a job analysis.

• Sample
Types of Information Collected
Work
activities

Human Human
requirements behaviors
Information
Collected Via
Job Analysis
Machines, tools,
Job
equipment, and
context
work aids

Performance
standards
Uses of Job Analysis Information
Recruitment
and selection

EEO
compliance Compensation
Information
Collected via
Job Analysis
Discovering Performance
unassigned duties appraisal

Training
Steps in Job Analysis
Steps in doing a job analysis:

1 Decide how you’ll use the information.

2 Review relevant background information.

3 Select representative positions.

4 Actually analyze the job.

5 Verify the job analysis information.

6 Develop a job description and job specification.

Collecting Job Analysis Information

Methods for Collecting Job Analysis Information

Interviews Questionnaires Observations Diaries/Logs

Job Analysis: Interviewing Guidelines
• The job analyst and supervisor should work together
to identify the workers who know the job best.
• Quickly establish rapport with the interviewee.
• Follow a structured guide or checklist, one that lists open-ended
questions and provides space for answers.
• Ask the worker to list his or her duties in order
of importance and frequency of occurrence.
• After completing the interview, review and verify
the data.
Methods for Collecting Job Analysis
Information: The Interview
• Information Sources • Interview Formats
• Individual employees • Structured (Checklist)
• Groups of employees • Unstructured
• Supervisors with knowledge
of the job
• Advantages
• Quick, direct way to find
overlooked information
• Disadvantage
• Distorted information
 Methods for Collecting Job Analysis
Information: Questionnaires
• Information Source • Advantages
• Have employees fill out • Quick and efficient way
questionnaires to describe their job- to gather information
related duties and responsibilities from large numbers of
employees
• Questionnaire Formats
• Structured checklists
• Disadvantages
• Open-ended questions • Expense and time consumed in
preparing and testing the
questionnaire
Job Analysis Questionnaire for
Developing Job Descriptions
Example of Position/Job Description Intended for
Use Online

Job description for Accountant

https://hiring.monster.com/hr/hr-best-
practices/recruiting-hiring-advice/job-
descriptions/accountant-job-description-
sample.aspx
 Methods for Collecting Job Analysis
Information: Observation
• Information Source • Advantages
• Observing and noting the • Provides first-hand information
physical activities of • Reduces distortion
employees as they go of information
about their jobs by • Disadvantages
managers. • Time consuming
• Reactivity response distorts
employee behavior
• Difficulty in capturing
entire job cycle
• Of little use if job involves a
high level of mental activity
 Methods for Collecting Job Analysis
Information: Participant Diaries/Logs
• Information Source • Advantages
• Workers keep a • Produces a more complete
chronological diary or log picture of the job
of what they do and the • Employee participation
time spent on each activity • Disadvantages
• Distortion of information
• Depends upon employees to
accurately recall their
activities
Internet-Based Job Analysis
• Advantages
• Collects information in a standardized format from geographically dispersed
employees
• Requires less time than face-to-face interviews
• Collects information with minimal intervention or guidance
 Writing Job Descriptions
Job
identification

Job Job
specifications summary

Sections of a
Typical Job
Working Description Responsibilities and
conditions duties

Standards of Authority of
performance the incumbent
The Job Description • Responsibilities and Duties
• Major responsibilities and
• Job Identification duties (essential functions)
• Job title • Decision-making authority
• Preparation date • Direct supervision
• Preparer • Budgetary limitations
• Job Summary • Standards of Performance
• General nature of the job and Working Conditions
• Major functions/activities • What it takes to do the job
• Relationships successfully
• Reports to:
• Supervises:
• Works with:
• Outside the company:
Sample Job Description, Pearson Education
Sample Job Description, Pearson Education (cont’d)
Using the Internet for Writing Job Descriptions
Writing Job Descriptions (cont’d)
Step 1. Decide on a Plan
Step 2. Develop an Organization Chart
Step 3. Use a Simplified Job Analysis Questionnaire
Step 4. Obtain List of Job Duties
Step 5. Compile the Job’s Human Requirements
Step 6. Finalize the Job Description
 Writing Job Specifications
“What human traits and
experience are required to
do this job well?”

Job specifications Job specifications

Job specifications
for trained versus based on statistical
based on judgment
untrained personnel analysis
Writing Job Specifications (cont’d)
• Steps in the Statistical Approach
1. Analyze the job and decide how to measure job performance.
2. Select personal traits that you believe should predict successful
performance.
3. Test candidates for these traits.
4. Measure the candidates’ subsequent job performance.
5. Statistically analyze the relationship between the human traits and job
performance.
Job Analysis in a Worker-Empowered
World

Job Design:
From Specialized
to Enriched Jobs

Job Job Job

Enlargement Rotation Enrichment
Competency-Based Job Analysis
• Competencies
• Demonstrable characteristics of a person that enable performance of a job.
• Reasons for Competency-Based Job Analysis
• To support a high-performance work system (HPWS).
• To create strategically-focused job descriptions.
• To support the performance management process in fostering, measuring,
and rewarding:
• General competencies
• Leadership competencies
• Technical competencies
How to Write Job Competencies-Based Job
Descriptions
• Interview job incumbents and their supervisors
• Ask open-ended questions about job responsibilities and activities.
• Identify critical incidents that pinpoint success on the job.
• Use off-the-shelf competencies databanks
Recruitment & Selection
Swati A Vispute, PhD
Contents
• Recruitment
• Sources of Recruitment
• Selection Process
• Methods of Selection
Recruitment Defined
• Recruitment is the process of searching for potential employees and
stimulating them to apply for the jobs.
- Edwin Flippo
 Recruitment Model
Source: Breaugh & Starke (2000).
Recruitment Process Elements
• Recruitment planning
• Sourcing
• Screening & shortlisting
 Recruitment Planning @ ICICI
• ICICI scans more than 350,000 applicants annually. They hold monthly
manpower forecasting meetings such as demand planning meetings happen
in manufacturing set up. In these monthly meetings, they decide the
product mix that they require that month. Product mix would mean the mix
of the different positions that they would have to hire for. Therefore, they
would typically say we need X number of analyst and Y number of back
office operators. This product mix is then segmented by locations. They
also use yield methods to arrive at the number of applicants they would
need for hiring a certain number of people. This is how they do it. They take
the conversion rate for different positions – as in how many applicants
result in how many hires. These yield rates are arrived at looking at the
historical data. They factor in any other external factors such as a new MNC
opening a shop in the city to this yield ratio. To this finding, they add the
number of extra positions which would lie vacant due to regular attrition.
All this put together they arrive at the number of qualified applicants they
would need to hire for their required product mix of the month.
 Sources of Recruitment
Internal Sources External Sources
• Job sites
• Employee referral program • Recruitment advertisement
• Internal Job posting • Print, internet, radio & television, newspaper inserts
• Recruitment agencies, head-hunters, executive search firms
• Promotion • Networking
• Rehire • Social networking
• Succession planning • Job fairs
• Former and unsolicited applicants
• Transfer
• Campus recruitment
• Internship
Special Kinds of Recruiting – • Weblogs (blogs)
E-recruitment
• Career website
• Kiosks
 Internal Sources of Candidates
Advantages Disadvantages

• Foreknowledge of
candidates’ strengths • Failed applicants become
and weaknesses discontented
• More accurate view of • Time wasted interviewing
candidate’s skills inside candidates who will
not be considered
• Candidates have a stronger
commitment • Inbreeding strengthens
to the company tendency to maintain the
status quo
• Increases employee morale
• Less training and
orientation required
Recruiting via the Internet
• Advantages
• Cost-effective way to publicize job openings
• More applicants attracted over a longer period
• Immediate applicant responses
• Online prescreening of applicants
• Links to other job search sites
• Automation of applicant tracking and evaluation
• Disadvantages
• Exclusion of older and minority workers
• Unqualified applicants overload the system
• Personal information privacy concerns of applicants
Ineffective and Effective Web Ads
Advertising for Outside Candidates
• The Media Choice
• Selection of the best medium depends on the positions for which the firm is
recruiting.
• Newspapers: local and specific labor markets
• Trade and professional journals: specialized employees
• Internet job sites: global labor markets
• Constructing (Writing) Effective Ads
• Create attention, interest, desire, and action (AIDA).
• Create a positive impression (image) of the firm.
 Employment Agencies
Top Private Recruitment
Types of Employment Agencies in India
1. ABC Consultants
Agencies 2. SutraHR
3. Adecco India
4. AON Hewitt
5. CareerNet

Public Nonprofit Private

agencies agencies agencies
Why Use a Private Employment Agency?
• No HR department: firm lacks recruiting and screening capabilities to
attract a pool of qualified applicants.
• To fill a particular opening quickly.
• To attract more minority or female applicants.
• To reach currently employed individuals who are more comfortable
dealing with agencies than competing companies.
• To reduce internal time devoted to recruiting.
Specialized Staffing and Recruiting
• Alternative Staffing
• In-house contingent (casual, seasonal, or temporary) workers employed by
the company, but on an explicit short-term basis.
• Contract technical employees supplied for long-term projects under contract
from outside technical services firms.
Temp Agencies

• Benefits of Temps
• Increased productivity—paid only when working
• Allows “trial run” for prospective employees
• No recruitment, screening, and payroll administration costs
• Costs of Temps
• Increased labor costs due to fees paid to temp agencies
• Temp employees’ lack of commitment to the firm
 Concerns of Temp Employees
• Dehumanizing, impersonal, and discouraging treatment by employers.
• Insecurity about employment and pessimism about the future.
• Worry about the lack of insurance and pension benefits.
• Being misled about job assignments and whether temporary assignments
are likely to become full-time positions.
• Being “underemployed” while trying to return to the full-time labor market.
• Anger toward the corporate world and its values; expressed as alienation
and disappointment.
Executive Recruitment
• Executive Recruiters (Headhunters)
• Contingent-based recruiters
• Retained executive searchers
• Internet technology and specialization trends
• Guidelines for Choosing a Recruiter
1. Make sure the firm is capable of conducting a thorough search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Make sure the recruiter and you agree on what sort of person you need for the
position.
5. Never rely solely on the recruiter to do reference checking.
College Recruiting
• On-site visits
• On-campus recruiting goals • Invitation letters
• To determine if the candidate is • Assigned hosts
worthy of further consideration • Information packages
• To attract good candidates • Planned interviews
• Timely employment offer
• Follow-up
• Internships
Employee Referrals and Walk-ins
• Employee Referrals
• Referring employees become stakeholders.
• Referral is a cost-effective recruitment program.
• Referral can speed up diversifying the workforce.
• Relying on referrals may be discriminatory.
• Walk-ins
• Seek employment through a personal direct approach to the employer.
• Courteous treatment of any applicant is a good business practice.
 Recruiting A More Diverse Workforce
Single parents

The disabled Older workers

Minorities and
Silent Parcel Couriers women
The Need for Effective Recruiting

Recruiting Challenges

Effectiveness of Effects of Legal requirements

chosen recruiting nonrecruitment associated with
methods issues and policies employment laws
Effective Recruiting
• External Factors Affecting Recruiting
• Supply of workers
• Outsourcing of white-collar jobs Highly Effective Recruitment Practices
• Fewer “qualified” candidates Best Practices
• Other Factors Affecting Recruiting Success
• Consistency of recruitment with strategic goals
• Types of jobs recruited and recruiting methods
• Nonrecruitment HR issues and policies
• Successful prescreening of applicants
• Public image of the firm
• Employment laws
 Measuring Recruiting Effectiveness
Recruiting Yield Pyramid

50% ● ●

67% ● ● ●

75% ● ● ● ●

16% ● ● ● ● ● ●
Screening and Shortlisting
• Screening
• Screening is the investigation of a great number of something (for instance,
people) looking for those with a particular feature.
• Shortlisting
• Shortlisting means choosing candidates who are most likely to get selected.
Resume and Application Forms
• Information on:
• Education & experience
• Progress and growth in career
• Moves in previous jobs Sample Job Application Form

• Likelihood of success

http://www.tatasteel.com/careers/work-with-us/
Training & Development
SWATI A VISPUTE
Contents
Objective of Training
Training Need Analysis
Methods of Training
Training Evaluation
The Training Process
Training
◦ The process of teaching employees the basic skills they need to perform their
jobs.
The Training and Development Process
Needs analysis
◦ Identify job performance skills needed, assess prospective trainees skills, and develop objectives.

Instructional design
◦ Produce the training program content, including workbooks, exercises, and activities.

Validation
◦ Presenting (trying out) the training to a small representative audience.

Implement the program

◦ Actually training the targeted employee group.

Evaluation
◦ Assesses the program’s successes or failures.
Make the Learning Meaningful
At the start of training, provide a bird’s-eye view of the material to be presented
to facilitates learning.
Use a variety of familiar examples.
Organize the information so you can present it logically, and in meaningful units.
Use terms and concepts that are already familiar to trainees.
Use as many visual aids as possible.
ADDIE Model
Analyzing Training Needs
Task analysis
◦ A detailed study of a job to identify the specific skills required, especially for new employees.

Performance analysis
◦ Verifying that there is a performance deficiency and determining whether that deficiency
should be corrected through training or through some other means (such as transferring the
employee).
Training Methods
On-the-job training (OJT)
◦ Having a person learn a job by actually doing the job.
OJT methods
◦ Coaching or understudy
◦ Job rotation
◦ Special assignments
Advantages
◦ Inexpensive
◦ Immediate feedback
Steps in OJT
Step 1: Prepare the learner
◦ Put the learner at ease—relieve the tension.
◦ Explain why he or she is being taught.
◦ Create interest, encourage questions, find out what the learner already knows
about this or other jobs.
◦ Explain the whole job and relate it to some job the worker already knows.
◦ Place the learner as close to the normal working position as possible.
◦ Familiarize the worker with equipment, materials, tools, and trade terms.
Steps in OJT (cont’d)
Step 2: Present the operation
◦ Explain quantity and quality requirements.
◦ Go through the job at the normal work pace.
◦ Go through the job at a slow pace several times, explaining each step.
Between operations, explain the difficult parts, or those in which errors are
likely to be made.
◦ Again go through the job at a slow pace several times; explain the key points.
◦ Have the learner explain the steps as you go through the job at a slow pace.
Steps in OJT (cont’d)
Step 3: Do a tryout
◦ Have the learner go through the job several times, slowly, explaining each
step to you.
◦ Correct mistakes and, if necessary, do some of the complicated steps the first
few times.
◦ Run the job at the normal pace.
◦ Have the learner do the job, gradually building up skill and speed.
◦ As soon as the learner demonstrates ability to do the job, let the work begin,
but don’t abandon him or her.
Steps in OJT (cont’d)
Step 4: Follow up
◦ Designate to whom the learner should go for help.
◦ Gradually decrease supervision, checking work from time to time against
quality and quantity standards.
◦ Correct faulty work patterns before they become a habit. Show why the
learned method is superior.
◦ Compliment good work; encourage the worker until he or she is able to meet
the quality and quantity standards.
Training Methods (cont’d)
Apprenticeship training
◦ A structured process by which people become skilled workers through a combination of
classroom instruction and on-the-job training.

Informal learning
◦ The majority of what employees learn on the job they learn through informal means of
performing their jobs on a daily basis.

Job instruction training (JIT)

◦ Listing each job’s basic tasks, along with key points, in order to provide step-by-step training
for employees.
Training Methods (cont’d)
Effective lectures
◦ Use signals to help listeners follow your ideas.
◦ Don’t start out on the wrong foot.
◦ Keep your conclusions short.
◦ Be alert to your audience.
◦ Maintain eye contact with the trainees.
◦ Make sure everyone in the room can hear.
◦ Talk from notes rather than from a script.
◦ Break a long talk into a series of five-minute talks.
Programmed Learning
Programmed instruction (PI)
◦ A systematic method for teaching job skills involving:
◦ Presenting questions or facts
◦ Allowing the person to respond
◦ Giving the learner immediate feedback on the accuracy of his or her answers

Advantages
◦ Reduced training time
◦ Self-paced learning
◦ Immediate feedback
◦ Reduced risk of error for learner
Training Methods (cont’d)
Literacy training techniques
◦ Responses to functional illiteracy
◦ Testing job candidates’ basic skills.
◦ Setting up basic skills and literacy programs.

Audiovisual-based training
◦ To illustrate following a sequence over time.
◦ To expose trainees to events not easily demonstrable in live lectures.
◦ To meet the need for organizationwide training and it is too costly to move
the trainers from place to place.
Training Methods (cont’d)
Simulated training (occasionally called vestibule training)
◦ Training employees on special off-the-job equipment so training costs and
hazards can be reduced.
◦ Computer-based training (CBT)
◦ Electronic performance support systems (EPSS)
◦ Learning portals
Computer-based Training (CBT)
Advantages
◦ Reduced learning time
◦ Cost-effectiveness
◦ Instructional consistency
Types of CBT
◦ Intelligent Tutoring systems
◦ Interactive multimedia training
◦ Virtual reality training
Distance and Internet-Based Training
Teletraining
◦ A trainer in a central location teaches groups of employees at remote locations via TV
hookups.

Videoconferencing
◦ Interactively training employees who are geographically separated from each other—or from
the trainer—via a combination of audio and visual equipment.

Training via the Internet

◦ Using the Internet or proprietary internal intranets to facilitate computer-based training.
What Is Management Development?
Management development
◦ Any attempt to improve current or future management performance by
imparting knowledge, changing attitudes, or increasing skills.
Succession planning
◦ A process through which senior-level openings are planned for and eventually
filled.
◦ Anticipate management needs
◦ Review firm’s management skills inventory
◦ Create replacement charts
◦ Begin management development
Managerial on-the-Job Training
Job rotation
◦ Moving a trainee from department to department to broaden his or her experience and
identify strong and weak points.

Coaching/Understudy approach
◦ The trainee works directly with a senior manager or with the person he or she is to replace;
the latter is responsible for the trainee’s coaching.

Action learning
◦ Management trainees are allowed to work full-time analyzing and solving problems in other
departments.
 Off-the-Job Management Training
and Development Techniques
Case study method
◦ Managers are presented with a description of an organizational problem to diagnose
and solve.

Management game
◦ Teams of managers compete by making computerized decisions regarding realistic but
simulated situations.

Outside seminars
◦ Many companies and universities offer Web-based and traditional management
development seminars and conferences.
Off-the-Job Management Training and
Development Techniques (cont’d)
Role playing
◦ Creating a realistic situation in which trainees assume the roles of persons in that situation.

Behavior modeling
◦ Modeling: showing trainees the right (or “model”) way of doing something.
◦ Role playing: having trainees practice that way
◦ Social reinforcement: giving feedback on the trainees’ performance.
◦ Transfer of learning: Encouraging trainees apply their skills on the job.
Off-the-Job Management Training and
Development Techniques (cont’d)

Corporate universities
◦ Provides a means for conveniently coordinating all the company’s training efforts
and delivering Web-based modules that cover topics from strategic management
to mentoring.
◦ E.g. McDonald Hamburger University, Motorola, GE, Walt Disney, Apple, Oracle
University, University of Toyota, Mahindra Satyam, L&T, Nirma, Infosys, etc.

In-house development centers

◦ A company-based method for exposing prospective managers to realistic exercises
to develop improved management skills.
Off-the-Job Management Training and
Development Techniques (cont’d)
Executive coaches
◦ An outside consultant who questions the executive’s boss, peers, subordinates, and
(sometimes) family in order to identify the executive’s strengths and weaknesses.
◦ Counsels the executive so he or she can capitalize on those strengths and overcome the
weaknesses.
Evaluating the Training Effort
Designing the study
◦ Time series design
◦ Controlled experimentation

Training effects to measure

◦ Reaction of trainees to the program
◦ Learning that actually took place
◦ Behavior that changed on the job
◦ Results that were achieved as a result of the training
Time Series Training Evaluation Design
A Sample Training Evaluation Form
Compensation Management
Swati A Vispute
Contents
• Definition and importance
• How to decide on the compensation for a profile
• Various components in compensation
Compensation
• Compensation refers to all financial returns and tangible benefits that
employees receive as part of an employment relationship.
• Direct financial payments
• Pay in the form of wages, salaries, incentives, commissions, and bonuses.
• Indirect financial payments
• Pay in the form of financial benefits such as insurance.
• Non financial compensation
• Job satisfaction, work environment, etc.
Components of Compensation Programme
Base wage and salary Basic pay + DA
Wage and salary add-ons Overtime pay, pay for working on weekends,
holidays
Allowances HRA, TA
Incentives payments Payment for specified output
Employee benefits and Health benefits, pension, retirement pay, medical
services protection, car, childcare, recreation activities, etc.

Performance related variable Based on performance of the company

pay
Profit sharing, gain sharing, Sharing success of organisation with employees
equity plans
Determining compensation – Wage Mix
Internal Factors External Factors

Employer’s compensation Strategy Manpower market conditions

Relative worth of the job Area wage rates

Employee’s relative worth Cost of living

Employer’s Ability to pay Collective bargaining

Establishing Pay Rates
• Step 1. The salary survey
• Aimed at determining prevailing wage rates.
• A good salary survey provides specific wage rates for specific jobs.
• Formal written questionnaire surveys are the most comprehensive, but
telephone surveys and newspaper ads are also sources of information.
• Benchmark job: A job that is used to anchor the employer’s pay scale and around which
other jobs are arranged in order of relative worth.
Sources for Salary Surveys
• Consulting firms
• Professional associations
• Government agencies
Establishing Pay Rates (cont’d)
• Step 2. Job evaluation
• A systematic comparison done in order to determine the worth of one job
relative to another.
• Compensable factor
• A fundamental, compensable element of a job, such as skills, effort,
responsibility, and working conditions.
Preparing for the Job Evaluation
• Identifying the need for the job evaluation
• Getting the cooperation of employees
• Choosing an evaluation committee.
• Performing the actual evaluation.
Establishing Pay Rates (cont’d)
• Step 3. Group Similar Jobs into Pay Grades
• A pay grade is comprised of jobs of approximately equal difficulty or
importance as established by job evaluation.
• Point method: the pay grade consists of jobs falling within a range of points.
• Ranking method: the grade consists of all jobs that fall within two or three ranks.
• Classification method: automatically categorizes jobs into classes or grades.
Establishing Pay Rates (cont’d)
• Step 4. Price Each Pay Grade
— Wage Curve
• Shows the pay rates currently paid for jobs in each pay grade, relative to the
points or rankings assigned to each job or grade by the job evaluation.
• Shows the relationships between the value of the job as determined by one
of the job evaluation methods and the current average pay rates for your
grades.
Establishing Pay Rates (cont’d)
• Step 5. Fine-tune pay rates
• Developing pay ranges
• Flexibility in meeting external job market rates
• Easier for employees to move into higher pay grades
• Allows for rewarding performance differences and seniority
• Correcting out-of-line rates
• Raising underpaid jobs to the minimum of the rate range for their pay grade.
• Freezing rates or cutting pay rates for overpaid (“red circle”) jobs to maximum in the pay
range for their pay grade.
Variable Pay Strategies
Time Instrument scheme affecting Schemes
scheme
Immediate Individual Team
• Individual incentive • Group
Incentive
Medium • Performance and • Gain sharing
term competency related pay • Profit sharing
• Skill based pay • Profit related pay

Long term • Share option

• Long term incentive
scheme
• Chrysler – pay progression rewards job knowledge and performance
• Reliance communication – performance based variable pay plan for
junior management 10% of CTC, middle 20% of CTC and senior 30% of
CTC
• Motorola – Compensation system evolved from traditional time-in-
grade pay to skill based pay
• Essar, Apollo, Thomas cook, I Gate offer stock options
Employee Benefits
• Employee benefits refers to the indirect financial and non-financial
payments the employees receive; they could be a part of the
employees compensation too.
• To help in recruitment and retention
• To enhance commitment
• To design tax efficient remuneration
• To enhance job satisfaction, motivation
Classification of employee benefits
Personal needs Leave, flexible work, recreational facilities, employee
assistance programme
Pension schemes PF, Superannuation, pension plan, retirement policies
Personal security Disability income continuation, accident insurance policy, life
insurance, business travel insurance, healthcare for family,
periodic health check-ups
Financial Company loans, relocation, company discounts, severance pay
assistance
Allowances DA, HRA, TA, Education allowance, Uniform allowance, LTA
Other benefits Cafeteria, Intangible benefits
HSBC Flexible work arrangements

Wipro Technologies, Telecommuting

Indian Oil, TCS,
Cognizant Technologies
Deloitte Accident insurance, initial accommodation for outstation
candidates, transportation
3M, Google, HP Time off to explore own projects

Starbucks Competitive base pay, rewards business goals, health

coverage, employee assistance programmes, adoption
assistance programmes, stocks, medical benefits, tuition
reimbursement pay
Case study
Performance Management
Swati A Vispute
Contents
• Definition and importance of performance and potential appraisal
• Methods of Performance Appraisal
• Barriers to effective performance appraisal
• Various bias factors affecting performance appraisal
News!
• TCS to rebuild its appraisal system
 Basic Concepts in Performance
Management and Appraisal

Comparing
Performance Appraisal and
Performance Management

Performance Appraisal: Performance Management:

Setting work standards, assessing An integrated approach to ensuring
performance, and providing that an employee’s performance
feedback to employees to motivate, supports and contributes to the
correct, and continue their organization’s strategic aims.
performance.
Classroom Teaching Appraisal by Students
Why Performance Management?

Total Quality

The
Performance
Appraisal Issues
Management
Approach
Strategic Focus
 Defining the Employee’s Goals
and Work Standards

Guidelines for
Effective Goal Setting

Assign
Assign Assign
Challenging Encourage
Specific Measurable
but Doable Participation
Goals Goals
Goals
Setting Goals
• SMART Goals:
• Specific, and clearly state the desired results.
• Measurable in answering “how much.”
• Attainable, and not too tough or too easy.
• Relevant to what’s to be achieved.
• Timely in reflecting deadlines and milestones.
Performance Appraisal Roles
• Supervisors
• Usually do the actual appraising.
• Must be familiar with basic appraisal
techniques.
• Must understand and avoid problems that
can cripple appraisals.
• Must know how to conduct appraisals
fairly.
Performance Appraisal Roles (cont’d)
• The HR Department
• Serves a policy-making and advisory role.
• Provides advice and assistance regarding the appraisal tool to use.
• Trains supervisors to improve their appraisal skills.
• Monitors the appraisal system effectiveness and compliance with EEO laws.
An Introduction to Appraising Performance
Why Appraise Performance?

1 Is basis for pay and promotion decisions.

2 Plays an integral role in performance management.

Helps in correcting deficiencies and reinforcing good

3
performance.

4 Is useful in career planning.

An Introduction to Appraising Performance
Steps in Appraising Performance

1 Defining the job

2 Appraising performance

3 Providing feedback
Designing the Appraisal Tool
• What to Measure?
• Work output (quality and quantity)
• Personal competencies
• Goal (objective) achievement
• How to Measure?
• Generic dimensions
• Actual job duties
• Behavioral competencies
Performance Appraisal Methods
Appraisal Methodologies

1 Graphic Rating Scale Method 6 Narrative Forms

Behaviorally Anchored Rating

2 Alternation Ranking Method 7
Scales (BARS)
Management by Objectives
3 Paired Comparison Method 8
(MBO)
Computerized and Web-Based
4 Forced Distribution Method 9
Performance Appraisal

5 Critical Incident Method 10 Merged Methods

Behaviorally Anchored Rating Scale (BARS)
Developing a BARS Advantages of BARS
1. Generate critical incidents • A more accurate gauge
2. Develop performance • Clearer standards
dimensions • Feedback
3. Reallocate incidents • Independent dimensions
4. Scale the incidents • Consistency
5. Develop a final instrument
Management by Objectives (MBO)
• A comprehensive and formal organizationwide goal-setting and
appraisal program requiring:
1. Setting of organization’s goals.
2. Setting of departmental goals.
3. Discussion of departmental goals.
4. Defining expected results (setting individual goals).
5. Conducting periodic performance reviews.
6. Providing performance feedback.
 Using MBO
Setting unclear Time-consuming
objectives appraisal process

Problems with
MBO

Conflict with
subordinates over
objectives
 Appraising Performance:
Problems and Solutions
Potential Rating
Scale Appraisal
Problems

Unclear Halo Central Leniency or

Bias
Standards Effect Tendency Strictness
 A Graphic Rating Scale with Unclear Standards

Excellent Good Fair Poor

Quality of work
Quantity of work

Creativity

Integrity

Note: For example, what exactly is meant by “good,” “quantity of work,” and so forth?
 Sample Rating Errors

Focusing on one or two critical incidents

Lower rating for less challenge
Nobody can be that good (Strictness)
Similarity
Being influenced by prior performance
Rating for retention
Style differences
Emotional rating
Recent performance only
Friendships
 Appraising Performance:
Problems and Solutions (cont’d)

How to Avoid
Appraisal Problems

Control
Know Use the Train Keep
Outside
Problems Right Tool Supervisors a Diary
Influences
 Important Advantages and Disadvantages of Appraisal Tools

Tool Advantages Disadvantages

Graphic rating Simple to use; provides a Standards may be unclear; halo
scale quantitative rating for each effect, central tendency, leniency,
employee. bias can also be problems.

BARS Provides behavioral “anchors.” Difficult to develop.

BARS is very accurate.

Alternation ranking Simple to use (but not as simple as Can cause disagreements among
graphic rating scales). Avoids central employees and may be unfair if all
tendency and other problems of employees are, in fact, excellent.
rating scales.

Forced distribution End up with a predetermined number Employees’ appraisal results depend
method or % of people in each group. on your choice of cutoff points.

Critical incident Helps specify what is “right” and Difficult to rate or rank employees
method “wrong” about the employee’s relative to one another.
performance; forces supervisor to
evaluate subordinates on an ongoing
basis.

MBO Tied to jointly agreed-upon Time-consuming.

performance objectives.
 Who Should Do the Appraising?

Immediate
Self-Rating
Supervisor

Peers
Potential Subordinates
Appraisers

Rating 360-Degree
Committee Feedback
 The Appraisal Interview

Satisfactory—Promotable

Satisfactory—Not Promotable
Types of Appraisal
Interviews
Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable
Formal Written Warnings
• Purposes of a Written Warning
• To shake your employee out of bad habits.
• To help you defend your rating, both to your own boss and (if needed) to the
courts.
• A Written Warning Should:
• Identify standards by which employee is judged.
• Make clear that employee was aware of the standard.
• Specify deficiencies relative to the standard.
• Indicate employee’s prior opportunity for correction.
Creating the Total Performance
Management Process
• “What is our strategy and what are our goals?”
• “What does this mean for the goals we set for our
employees, and for how we train, appraise, promote,
and reward them?”
 Ranking Employees by the Paired Comparison Method

Note: + means “better than.” – means “worse than.” For each chart, add
up the number of +’s in each column to get the highest-ranked employee.
 Examples of Critical Incidents for a Plant Manager

Continuing Duties Targets Critical Incidents

Schedule production 90% utilization of Instituted new production scheduling

for plant personnel and system; decreased late orders by 10%
machinery in plant; last month; increased machine
orders delivered on utilization in plant by 20% last month
time

Supervise procurement Minimize inventory Let inventory storage costs rise 15% last
of raw materials and costs while keeping month; overordered parts “A” and “B”
inventory control adequate supplies on by 20%; underordered part “C” by 30%
hand

Supervise machinery No shutdowns due to Instituted new preventative

maintenance faulty machinery maintenance system for plant;
prevented a machine breakdown by
discovering faulty part
Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship Skills
Employee relations
Swati A Vispute
Contents
• Concept of employee relations
• Importance of maintaining harmonious relations
• Introduction to disputes
Strikes in Automobile Industry
IR – Industrial Relations
• IR is concerned with the relationship between management and
workers and the role of regulatory mechanism in resolving any
industrial dispute.
• It involves:
• Collective bargaining
• Role of management, unions, and government
• Machinery for resolution of industrial disputes
• Individual grievance and disciplinary policy and practice
• Labour legislation
• Industrial relations training
Approaches to IR
IR is grounded in mutual co-operation, individual treatment, team-work and shared
Unitary Approach goals
• E.g. Alwar factory Eicher Tractors – Employee Union given its right to negotiate voluntarily

The industrial conflict is inevitable and it needs to be contained within the social
Pluralistic Approach mechanism of collective bargaining, conciliation and arbitration
• Therefore, strong union is not only desirable but necessary

For Marxist conflict arises not because of rift between management and workers,
but because of division in the society between those who own resources and those
Marxist Approach who have only labour to offer.
• Industrial conflict is equated with political and social unrest
Parties to IR
Employers

Employee Associations

Employer Associations

Courts and Tribunals

Government

Employees
Role of HR Manager
• HR should contribute to Quality of Work Life (QWL)
• Fair remuneration, safe & healthy environment, opportunities for
growth, etc.
Trade Unions
• Trade unions are voluntary organizations of employees or employers
formed to promote and protect their interests through collective
action.
• Trade Union Act, 1926
• Strategic choices before managers:
• Whether organization should remain union-free or allow unionisation
• If union-free, then take steps to keep unions away from the organization
• If unionisation allowed, decide the union-management relationship
• Choose a type of tactic to use while negotiating
Trends in Trade Union Movements
• Unions are becoming matured, responsive, and realistic
• Unions are reconciled to economic reforms
• Depoliticisation of unions
• Multiplicity of unions
• Outside leadership in trade unions
Industrial Disputes
• Conflict between employees and employers
• Causes of disputes:
• Wage demands
• Union rivalry
• Political interference
• Unfair labour practices
• Multiplicity of labour practices
Industrial Disputes in India
Settlement of Disputes
• Collective bargaining – representative of labour union meet management
representatives to discuss employee concerns
• Code of discipline – defines duties and responsibilities of employers and workers
• Grievance procedure – method of resolving conflict
• Arbitration – neutral third party studies the dispute, listens to both the parties, and
collects information, and makes recommendations which are binding on both the parties
• Conciliation – representative or workers and employers are brought together before a
third party with a view to persuading them to arrive at an agreement by mutual
discussion
• Adjudication – mandatory settlement of an industrial dispute by court or a tribunal
• Consultative machinery – set by government to resolve conflicts. Bring parties together
for mutual settlement of differences in a spirit of co-operation and goodwill. Operates at
plant, industry, state and national level.