3-1 EXCEL

BOOKS
Chapter
3

HRM IN A DYNAMIC
ENVIRONMENT-
Gary Dessler,Biju. V
 HRM Definition
 The policies and practices involved in
carrying out the “people” or Human resources
aspects of a management position ,including
recruitment, screening, training ,rewarding,
and appraising.
 Conducting-job analysis
 Planning labor needs, recruiting job candidates
 Selecting, orienting and training job candidates
 Managing wage and salaries
 Providing incentives and benefits
 Appraising performance
 Communicating
 T&D of Managers-Building employee-commitment

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External and internal factors influencing
the Personnel function

External factors Internal factors

v Technological factors v Mission
v Economic challenges v Policies
v Political factors v Organisational culture
v Social factors v Organisation structure
v Local and Governmental issues v HR systems
v Unions
v Employers’ demands
v Workforce diversity

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Technological Changes And HRM

Technology includes tools, machinery, equipment, work procedures

and employee knowledge and skills. The impact of technology on HR
can be profound, as the following things clearly reveal:

v New skills, knowledge, experience and expertise required to gain

the edge over rivals.
v Downsize operations, cut organisational layers and cut the extra
fat to survive in a competitive world
v Collaborate and achieve teamwork
v Relocate work from the office to the home
v Internet and intranet revolution

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Role of HR in a virtual organisation

A virtual organisation is a network of companies or employees

connected by computers. Virtual workers work from home, hotels, their
cars, or wherever their work takes them. The human resource function
plays a unique role in a virtual organisation:Infosys,MS
v Psychological fit: The lack of face-to-face interaction in a virtual
organisation, virtually compels HR professionals to determine the
psychological fit between different units initially.
v System alignment: Given the lack of physical proximity, it
becomes even more critical that the organisation's mission, vision
and measures be aligned and that all parties are familiar with these
issues; the HR function can play an important role in this task.
v Reconsider rewards: In a virtual unit, very few permanent
positions exist. In many cases, the organisation will be staffed with
workers having different motivational forces. So rewarding each
entity in an effective way becomes an important job.
Cont…

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Role of HR in a virtual organisation

v Reconsider staffing needs: In a virtual organisation, most

employees work on a contractual basis. Finding people with
requisite skills, knowledge and motivation levels becomes an
important activity.
v Build partnerships: Virtual, teams have to be built from scratch
paying attention to their unique requirements. The concept of
employment needs to be replaced by the concept of 'partnership'
especially when most tend to work independently away from the
permanent employees or owners of the organisation
v Develop leaders: Leaders become the major forces for building
trust, creating a mission and instilling a sense of belonging to the
organisation. HR can play a major role in ensuring that leaders
assume these responsibilities and meet them in an effective way.

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Total Quality Management

Programmes

TQM is a way of creating an organisational culture committed to the

continuous improvement of skills, teamwork, processes, product and
service quality and customer satisfaction.

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TQM: The main ideas

v Do it right the first time

v Be customer oriented
v Make continuous improvement a way of life
v Build teamwork
v Empower people
v Create a climate of trust, an atmosphere for innovation

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Total Quality HR Approach

The Total Quality HR Approach is all about employee participation

and empowerment, carried out in a sincere and wholehearted
manner. Rewards are designed to meet employee needs.
Employees are treated like customers. 360 degree appraisals are
carried out before picking up the best performing teams. Small
ideas and improvements are encouraged.

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Quality snaps of Indian companies

Name of Company Efforts toward TQM

1. NTPC Started 1975,PEPOLE FIRST” ”competitive selection of young
engineers ,MT ,orientation programs ,use latest
technology, outsource-salary section,No-1-Best Workplace for
large organization, SCOPE meritorious award for best practices
inHRM-2007
2. .Bharat Heavy Electricals Ltd First to get ISO 9001 certification, in Dec 93; Strict metal parts
(BHEL) quality control; 100% checking of insulators for
testing their strength; strict quality assurance tests; high quality
testing labs, etc.
3. TELCO (Lucknow) SUMO model Jeeps manufactured here according highest
priority to ISO 9000 certifications; training and self-inspection
given top priority.
4. Philips India Ltd Implemented TQM in 1995; first step was moving toward
international quality system standards ISO 9000; total employee
involvement; creation of self managing mini, micro and mega-
teams; got the European Quality Award; Kaizen and suggestion
schemes introduced followed by rewards and recognition
system; regular surveys of employee motivation levels
accompanied by customer surveys

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What HR managers can do ?

v Use workforce skills and abilities in order to exploit environmental opportunities and
neutralise threats.
v Employ innovative reward plans that recognise employee contributions and grant
enhancements.
v Indulge in continuous quality improvement through TQM and HR contributions
(training, development, counselling, coaching etc.).
v Utilise people with distinctive capabilities to create unsurpassed competence in
an area (Xerox in photocopier, 3M in adhesives, Telco in trucks, Britannia in
biscuits, Nestle in coffee, McDonald’s in fast foods, etc.).
v Decentralise operations and rely on self managed teams to deliver goods in difficult
times (Motorola is famous for short product development cycles. It has quickly
commercialised ideas from its research labs).
v Lay off workers in a smooth way, explaining facts (IBM, Kodak, Xerox, AT&T,
Steel and Textile firms in India etc.) to unions, workers and other affected groups.
HR generally plays a key role, these days, in planning and implementing corporate
downsizings, and then in maintaining the morale of the remaining employees.

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Political factors

v Political stability
v Formation of new political parties
v Influence of politicians over Productivity linked wage agreements
v Political parties sympathetic to trade unionism
v Opposition to VRS schemes, downsizing operations, restructuring
exercises.
v Freedom to show the door to unwanted people

Social factors
v Conducting business in a socially relevant and responsible way.
v Hire qualified people or hire inexperienced local people and train them
to avoid trouble?
v Helping economically poor people, unemployed, underprivileged ones,
etc.

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Local and government-related

factors
v Meet legislative requirements
v Offering jobs to certain sections of local community

Trade unions
v Demands for higher wages, better working conditions, incentives,
benefits, services

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MANAGING WORKFORCE DIVERSITY

The workforce is becoming increasingly diverse now and organisations
are doing their best to address employee concerns and to maximise
benefits of different kind to employees with diverse educational,
cultural and religious backgrounds. The diversity issues, mainly,
include the following:
v Composition
In terms of age, caste, education, culture, region, religion
v Minority groups
v Economically backward groups
v Displaced persons
v Child labour
v Contract labour
v Women employees

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Designing appropriate HR systems

Issue Focus on
v Nature of employment : Job/Career
v Recruitment : Internal/external/both
v Selection : Merit/other considerations
v Training and employee : 6 months/yearly
development actions Regular/irregular/need based
v Degree of participation : Top down/bottom up
v Incentives : Individual merit/group output
v Job security : Lifelong employment/need-based jobs
v Employee welfare : Be a model employer (offer those that
are needed by law.)

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ANNOTATED OUTLINE-
RECRUITMENT
INTRODUCTION
Recruitment is the process of locating and encouraging potential
applicants to apply for existing or anticipated job openings
v Certain influences, however, restrain a firm while choosing a
recruiting source such as:
v Poor image
v Unattractive job
v Conservative internal policies
v Limited budgetary support
v Restrictive policies of government

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Situational factors impacting recruitment

The process of recruitment is influenced by a variety of environmental

factors.
v Economic factors
v Social factors
v Technological factors
v Political factors
v Legal factors
v The Factories Act
v The Apprentices Act
v The Employment Exchanges Act
v The Contract Labour Act
v Bonded Labour System Act
v The Child Labour Act

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Sources of Recruitment

The sources of recruitment may broadly be divided into two

categories: internal sources and external sources. Both have their
merits and demerits.

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Methods Of Recruitment

Internal methods
v Promotions and transfers: Promotion is the movement of an
employee from a lower level position to a higher level position with
increase in salary

Transfer, on the other hand, is a lateral movement within the same

grade, from one job to another.

v Job posting: It is a method of publicising job openings on bulletin

boards, electronic media and similar outlets by a company.

v Employee referrals: It is a kind of recommendation from a current

employee regarding a job applicant.

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Guidelines for campus recruiting

v Shortlist campuses
v Choose recruiting team carefully
v Pay smartly, not highly
v Present a clear image
v Do not oversell yourself
v Get in early
v Not everyone fits the bill

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Indirect methods

v Newspaper advertisements
v Television and radio advertisements

Third party methods

v Private employment search firms
v Employment exchanges
v Gate hiring and contractors
v Unsolicited applicants/walk-ins
v Internet recruiting

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Alternatives to recruiting

Overtime: Short term fluctuations in work volume could best be solved through
overtime. The employer benefits because the costs of recruitment, selection and training
could be avoided. The employee benefits in the form of higher pay. However, an
overworked employee may prove to be less productive and turn out less than optimal
performance. Employees may slow down their pace of work during normal working
hours in order to earn overtime daily. In course of time, overtime payments become quite
routine and if, for any reason, these payments do not accrue regularly, employees
become resentful and disgruntled.

Subcontracting: To meet a sudden increase in demand for its products and services,
the firm may sometimes go for subcontracting – instead of expanding capacities
immediately. Expansion becomes a reality only when the firm experiences increased
demand for its products for a specified period of time. Meanwhile, the firm can meet
increased demand by allowing an outside specialist agency to undertake part of the
work, to mutual advantage.

Cont…

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Alternatives to recruiting

Temporary employees: Employees hired for a limited time to perform a specific job
are called temporary employees. They are particularly useful in meeting short term
human resource needs. A short term increase in demand could be met by hiring
temporary hands from agencies specialising in providing such services. It’s a big
business idea in United States these days ($3-$4 billion industry). In this case the firm
can avoid the expenses of recruitment and the painful effects of absenteeism, labour
turnover, etc. It can also avoid fringe benefits associated with regular employment.
However, temporary workers do not remain loyal to the company; they may take more
time to adjust and their inexperience may come in the way of maintaining high quality.

Employee leasing: Hiring permanent employees of another company who possess

certain specialised skills on lease basis to meet short-term requirements – although
not popular in India – is another recruiting practice followed by firms in developed
countries. In this case, individuals work for the leasing firm as per the leasing
agreement/arrangement. Such an arrangement is beneficial to small firms because it
avoids expense and problems of personnel administration.

Cont…

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Alternatives to recruiting

Outsourcing: Any activity in which a firm lacks internal expertise and requires on
unbiased opinion can be outsourced. Many businesses have started looking at
outsourcing activities relating to recruitment, training, payroll processing, surveys,
benchmark studies, statutory compliance etc., more closely, because they do not
have the time or expertise to deal with the situation. HR heads are no longer
keeping activities like resume management and candidate sourcing in their daily
scrutiny. This function is more commonly outsourced when firms are in seasonal
business and have cyclical stuffing needs.

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Recruitment Policies And Procedures

A recruitment policy indicates the organisation’s code of conduct in a

specific area.

Recruitment policy statement

In its recruitment activities, the company will:
v Advertise all vacancies internally
v Reply to every job applicant promptly
v Inform job applicants the basic details and job conditions of every job
advertised
v Process all applications with efficiency and courtesy
v Seek candidates on the basis of their qualifications
v Aim to ensure that every person invited for interview will be given a fair
and thorough hearing

Cont…

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Recruitment Policies And Procedures

The company will not:

v Discriminate unfairly against potential applicants on the basis of sex, race,
religion, caste, etc.;
v Knowingly make any false or exaggerated claims in its recruitment
literature or job advertisements

A recruitment procedure will lay down a clear path to be followed by

the HR department while hiring people. Of course, the procedures
have to be framed in a flexible manner so as to permit the HR
department to respond to the requests made by various departments
and by potential candidates quickly.

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Recruiters these days expect

Engineering graduates to possess
certain skills:

Skills Required by Companies in

India
1. Ability to work in a team
2. Analytical and problem solving skills
3. Communication and other soft skills
4. Creativity and resourcefulness
5. Leadership potential
6. General Managerial skills
7. Entrepreneurial skills

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ANNOTATED OUTLINE-SELECTION

INTRODUCTION
Selection is the process of picking individuals who have relevant
qualifications to fill jobs in an organization. Selection is much more
than just choosing the best candidate. It is an attempt to strike a
happy balance between what the applicant can and wants to do and
what the organization requires.

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7-3

ESSENTIALS OF SELECTION

v Picking individuals possessing relevant qualifications

v Matching job requirements with the profile of candidates
v Using multiple tools and techniques to find the most suitable
candidates capable
v Of achieving success on the job

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The Process

The Process of Selection

v Reception
v Screening Interview
v Application blank
v Selection Tests
v Selection Interview
v Medical Examination
v Reference Checks
v Hiring Decision

Selection is usually a series of hurdles or steps. Each one must be

successfully cleared before the applicant proceeds to the next

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7-5

The Process of Selection

v Reception
A warm, friendly and courteous reception is extended to candidates
with a view to create a favourable impression. Employment
possibilities are also communicated honestly and clearly
v Screening interview
The HR department tries to screen out the obvious misfits through this
courtesy interview. A prescribed application form is given to
candidates who are found to be suitable.
v Application blank
It is a printed form completed by job aspirants detailing their
educational background, previous work history and certain personal
data.

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Contents Of Application Blank

v Personal data (address, sex, identification marks)

v Marital data (single or married, children, dependents)
v Physical data (height, weight, health condition)
v Educational data (levels of formal education, marks, distinctions)
v Employment data (past experience, promotions, nature of duties, reasons for
leaving previous jobs, salary drawn, etc.)
v Extra-curricular activities data (sports/games, NSS, NCC, prizes won,
leisure-time activities)
v References (names of two or more people who certify the suitability of an
applicant to the advertised position)

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Sample Application Blank

Name: _________________________________________________________________________
Address: _______________________________________________________________________
Phone Number (Res): _______________________
Education
College/University Attended: ____________ Highest Degree (a) BA/BSc/MA/MSc/MBA/MCom
(b) BE/BTech/ MTech
(c) Any other
High School Attended: _____________________________
Work Experience (List most recent jobs first)
Name of the Organisation:
Gross Salary: ______________ (annual; be sure to include any bonuses or commission earned)
Job Title: ________________________________________________________
Name of Last Supervisor: __________________________________________
May we contact this supervisor? Yes / No
Reason(s) for Leaving: ____________________________________________________________

Name of Organisation: ____________________ Date of Employment: _______ from to ____

Gross Salary: ___________ (annual; be sure to include any bonuses or commission earned)
Job Title: ________________________________________________________
Name of Last Supervisor: __________________________________________
May we contact this supervisor? Yes / No
Reason(s) for Leaving: ____________________________________________________________

Name of Organisation: ____________________ Date of Employment: _______ from to ____

Gross Salary: ___________ (annual; be sure to include any bonuses or commission earned)
Job Title: ________________________________________________________
Name of Last Supervisor: __________________________________________
May we contact this supervisor? Yes / No
Reason(s) for Leaving: ____________________________________________________________

Work skills
1. List any job-related languages you are able to speak or write: _________________________
2. List any job-related clerical (e.g., typing) or technical skills (e.g., computer programming) that you
have:
A . ___________________________________ B. ___________________________________
C. ___________________________________
Additional Information
In case of an emergency, please contact.
Name: __________________________________________
Address: _______________________________________
Telephone: ______________________________________

I understand that falsification of information is grounds for dismissal.

I understand that my employment at the company may be discontinued at any time for any reason
either by myself or by the company.
I agree to submit to a drug and/or alcohol test as a condition of employment.

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Selection
Signature Date
7-8

The Process of Selection

v Weighted application blank

The items that have a strong relationship to job performance are
given numeric values or weights so that a company can cross-
compare candidates with more or less similar qualifications on
paper

Weighted Application Blank

v It is a printed form completed by candidate wherein each item is weighted and
scored based on its importance as a determinant of job success
v It helps a company to cross-compare candidates having more or less similar
qualifications and reject those not meeting the job criteria strictly
v On the negative side, it is difficult to develop an appropriate WAB, the exercise
could be quite costly, and it needs frequent updating so as to be in line with
changing job requirements.

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SELECTION TESTING

A. Intelligence tests: They measure a candidate’s learning ability

and also the ability to understand instructions and make
judgements. They do not measure any single trait but several
mental abilities (memory, vocabulary, fluency, numerical ability,
perception etc)
B. Aptitude tests: They measure a candidate’s potential to learn
clerical, mechanical and mathematical skills. Since they do not
measure a candidate’s on the job motivation, they are generally
administered in combination with other tests.
C. Personality tests: They measure basic aspects of a candidate’s
personality such as motivation, emotional balance, self
confidence, interpersonal behaviour, introversion etc.
v Projective tests: These tests expect the candidates to interpret
problems or situations based on their own motives, attitudes, values
etc (interpreting a picture, reacting to a situation etc)
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SELECTION TESTING

v Interest tests: These are meant to find how a person in tests

compares with the interests of successful people in a specific job.
These tests show the areas of work in which a person is most
interested.
v Preference tests: These tests try to compare employee preferences
with the job and organisational requirements.
D. Achievement tests: These are designed to measure what the
applicant can do on the job currently, ir., whether the testee
actually knows what he or she claims to know.
E. Simulation tests: Simulation exercise is a test which duplicates
many of the activities and problems an employee faces while at
work.
F. Assessment centre: It is a standardised form of employee
appraisal that uses multiple assessment exercises such as in
basket, games, role play etc and multiple raters.
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7-14

SELECTION TESTING

v The in-basket: From out of reports, memos, letters etc placed in the
in-basket, a candidate is supposed to initiate relevant actions within a
limited period of time.
v The leaderless group discussion: This exercise involves groups of
managerial candidates working together on a job related problem so
as to measure skills such as oral communication, tolerance, self-
confidence, adaptability, etc.
v Business games: Here participants try to solve a problem, usually as
members of two or more simulated companies that are competing in
the market place
v Individual presentations: In this case the participants are given a
limited amount of time to plan, organise and prepare a presentation on
a given topic.

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SELECTION TESTING

G. Graphology tests: Here a trained evaluator tries to examine the

lines, loops, hooks, strokes, curves etc in a person's handwriting
to assess the person's personality and emotional make-up.
H. Polygraph : It is a lie detection test. During the test, the operator
records the respiration, blood pressure and perspiration of the
subject as he or she responds to s series of questions posed to
elicit the truth.
I. Integrity tests: these are designed to measure employee's
honesty to predict those who are more likely to indulge in
unacceptable behaviour

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Tests as Selection Tools

Tests help uncover qualifications and talents that cannot be predicted

otherwise. They offer unbiased information regarding potentially
sound candidates. However, they suffer from sizeable errors of
estimate. It is difficult to elicit truthful responses from testees.
Standards for Selection Tests
To be useful, tests must meet certain requirements such as reliability,
validity, suitability, preparation, standardisation etc.

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Selection Interview
Interview is an important source of information about job applicants. Several
types of interviews are used , depending on the nature and importance of the
position to be filled within an organisation.

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7-22

Types Of Selection Interviews

The nondirective interview: the recruiter asks questions as they come to mind
The directive or structured interview: the recruiter uses a predetermined set of
Questions that are clearly job-related
The situational interview: the recruiter presents a hypothetical incident and asks
The candidate to respond
The behavioural interview: the focus here is on actual work related incidents and
The applicant is supposed to reveal what he or she did in a given situation
Stress interview: the recruiter attempts to find how applicants would respond to
Aggressive, embarrassing, rule and insulting (at times) questions
The panel interview: three or four interviewers pose questions to the applicant and
Examine the suitability of the candidate

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Interview Process

Interviewing is an art and involves a number of sequential steps

such as adequate preparation, proper reception, democratic
exchange of information, termination of interview in an appropriate
manner and objective evaluation of responses, records and other
relevant facts.

The Interview Process

v Preparation
v Reception
v Information exchange
v Termination

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Medical Examination And

Reference Checking
Medical evaluation and reference checking are routinely undertaken
by leading companies these days to learn more about the
candidate’s general health, social behaviour, interpersonal skills,
punctuality and honesty etc.

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9-2

Need For Training

Training is the process of teaching new

employees the basic skills they need to perform
their job.
Features of Training
v Increases knowledge and skills for doing a particular job
v Focuses attention on the individual job.
v Concentrates on individual employees
v Gives importance to short term performance

Training is essential for job success. It can lead to higher

production, fewer mistakes, greater job satisfaction and lower
turnover.

Training
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Need For Training

v helps new recruits to perform assigned tasks effectively

v helps existing employees to prepare for higher level jobs
v enables existing employees to keep in touch with latest
developments
v permits employees to cope with changes brought in by
frequent transfers
v makes employees more versatile, mobile, flexible and useful
to the organisation
v bridges the gap what the employee has and what the job
demands allows an employee to gain acceptance from peer
groups readily

Training
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Training vs. Development

Training is concerned with teaching specific job related skills and behaviour.
Development is future oriented training, focusing on the personal growth of
the employee.

Training vs. Development

Learning Dimension Training Development
Meant for Operatives Executives
Focus Current job Current and future jobs
Scope Individual employee Work group or organisation
Goal Fix current skill deficit Prepare for future work demands
Initiated by Management The Individual
Content Specific job related information General Knowledge
Time-frame Immediate Long term

Training
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Areas And Types of Training

Training is generally offered in the following areas

Areas of training
v Knowledge
v Technical skills
v Social skills
v Techniques

Training
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Areas And Types of Training

The various types of training that are commonly employed in

present-day organizations may be –On the Job or Off the Job
Training.
Types of training
v Skills training: here certain basic skills like reading, writing, computing, speaking,
listening, problem solving etc are taught
v Refresher training: here the focus is on short term courses that would help employees
learn about latest developments in their respective fields
v Cross functional training: this helps employees perform operations in areas other than
their assigned job.
v Team training: this is concerned with how team members should communicate with
each other, how they should cooperate to get ahead, how they should handle conflictful
situations, how to find their way using collective wisdom etc.
v Creativity training: this helps employees to think unconventionally, break the rules,
take risks, go out of the box and develop unexpected solutions.
v Diversity training: it aims to create better cross cultural sensitivity with the aim of
fostering more harmonious and fruitful working relationships among a firm's employees
v Literacy training: this is generally offered to those employees with weak reading,
writing or arithmetic skills.

Training
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A Systematic Approach To Training

A systematic approach to training would consist of three phases: training

needs assessment, implementation and evaluation

Training needs assessment

Training efforts must aim at meeting the needs of the organisation and the
individual employees. This, essentially, involves three types of analysis:
a. Organisational analysis: This is a study of the entire organisation in
terms of its objectives, utilisation of resources to achieve objectives etc.
v Analysis of objectives
v Resource utilisation analysis
v Environmental scanning
v Organisational climate analysis

Training
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Training needs assessment

b. Task or role analysis: this is a detailed examination of a job, its

components, its various operations and conditions under which it has to
be performed.

c. Person analysis: here the focus is on the individual in a given job;

whether training is needed, whether the employee is capable of being
trained, and the areas where the training is needed. 00

Training
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Training needs assessment

d. Identify training objectives: Training objectives can be of three

types

Objectives of training
OBJECTIVE

Innovative Problems Solving Regular

v Anticipating problems v Training clerks to v Orientation
before they occur reduce complaints
v Team building v Training supervisors v Recurring training of
sessions with the in communications interviewers
departments to reduce grievances
v Refresher courses on
safety procedures

Training
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Training needs assessment

e. Training methods: Formal training methods include on the job training

covering job instruction training, coaching, mentoring, job rotation,
apprenticeship training, committee assignments etc and off the job
training including lectures, conference, simulation exercises and
programmed instruction.
f. Evaluation: Evaluation helps in controlling and correcting the training
programme.

Training
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On The Job Training Methods

v Job instruction training (JIT): This is training directly received on the

job. Here the trainee receives an overview of the job. The trainer actually
demonstrates the hob and the trainee is asked to copy the trainer’s way.
The trainee, finally, tries to perform the job independently.
Merits and demerits of job instruction
training
Merits Demerits
v Trainee learns fast through practice and observation. v The trainee should be as good as the trainer.
If the trainer is not good, transference of
knowledge and skills will be poor.
v It is economical as it does not require any special v While learning, trainee may damage equipment,
settings. Also, mistakes can be corrected immediately. waste materials, cause accidents frequently.
v The trainee gains confidence quickly as he v Experienced workers cannot use the machinery
does the work himself in actual setting with while it is being used for training.
help from supervisor.
v It is most suitable for unskilled and semi-skilled jobs
where the job operations are simple; easy to explain

Training
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On The Job Training Methods

v Coaching: Here the supervisor explains things and answers questions;
throws light on why things are done the way they are; offers a model for
trainees to copy, conducts lot of decision making meetings, and allows
trainees freedom to commit mistakes and learn .Coaching, thus, requires
lot of teaching skills.

v Mentoring: The use of an experienced person to teach and train

someone with less knowledge and experience in a given area is known
as mentoring. The mentor nurtures, supports and guides the efforts of
young persons by giving appropriate information, feedback and
encouragement whenever required.

Training
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Functions of Mentoring
Good mentors...... Good mentees......
v Listen and understand v Listen
v Challenge and stimulate v Act on Advice
learning v Show commitment to learn
v Coach
v Check ego at the door
v Build self-confidence Successful v Ask for feedback
v Provide wise counsel Mentoring
v Are open minded
v Teach by example
v Are willing to change
v Act as role model
v Are proactive
v Share experiences
v Offer encouragement

Merits and demerits of Mentoring

Merits Demerits
v There is an excellent opportunity to learn v It may create feelings of jealousy among quickly
through continuous interaction. other workers who
are not able to show equally good performance.
v Constant guidance helps the mentee v If mentors form overly strong bonds with
to be on track, using facilities to good trainees, unwarranted favouritism may result.
advantage. This can have a demoralising effect on other workers,
affecting their work performance in a negative way.

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On The Job Training Methods

v Job rotation: This kind of training involves the movement of trainee from
one job to another.

Merits and demerits of Job rotation

Merits Demerits
v Improves participant’s job skills, job satisfaction Increased workload for participants
v Provides valuable opportunities to network within Constant job change may produce
the organisation stress and anxiety
v Offers faster promotions and higher salaries to Mere multiplication of duties do not
quick learners enrich the life of a trainee
v Lateral transfers may be beneficial in rekindling Development costs may shoot up when
enthusiasm and developing new talents trainees commit mistakes, handle tasks
less optimally

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9-20

On The Job Training Methods

v Apprenticeship training: Most craft workers such as plumbers, carpenters

etc are trained through formal apprenticeship programmes. In this method,
the trainees are put under the guidance of a master worker typically for 2-5
years.

v Committee assignments: In this method, trainees are asked to solve an

actual organizational programme working along with other trainees.

v EPSS-Electronic Performance Support System-Dell introduces about 80

new programs per year, difficult to remember, so EPSS are computerized
tools and displays that training, automate training documentation and
phone support, so when customer is asking to solve a problem, the
operator is asking questions to activate EPSS.

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9-21

Off The Job Training Methods

v Vestibule training: It occurs off the job on equipment or methods that
are highly similar to those used on the job.

v Role playing: This is a development technique requiring the trainee to

assume a role in a given situation and act out behaviours associated with
that role.

v Lecture method: Here the instructor organises the study material on a

specific topic and offers it to a group of trainees in the form of a talk.

v Conference or discussion method: In this method the trainer delivers

a lecture and involves the trainees in a discussion so that the doubts
about the job to be undertaken get clarified.

v Programmed instruction: This is an approach that puts material to be

learned into highly organised logical sequences that require the trainees
to respond
Training
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9-22

Evaluation of A Training Programme

Training can be evaluated at five levels: reaction, learning, behaviour,

organisation and results.
Important decision points in training evaluation may be listed thus;

Important decision points in planning

training evaluation
v Should an evaluation be made?
v Who should evaluate?
v What is the purpose of evaluation?
v What will be measured?
v How comprehensive will the evaluation be?
v Who has the authority and responsibility?
v What are the sources of data?
v How will the data be collected and evaluated?
v How will the data be analysed and reported?

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9-23

Methods of evaluation

v Questionnaires
v Tests
v Interviews
v Studies
v Human resource factors
v Cost benefit analysis
v Feedback.

Training
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15-2

Performance Appraisal

INTRODUCTION
Performance appraisal is a systematic and objective way of
evaluating both work related behavior and potential of employees.

Evaluating an employees' current and or past

performance relative to his or her performance
standards.

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And Potential
Environment
Appraisal
15-3

Features of performance appraisal

v It is a systematic process, essentially involving three steps: set work

standards, assess employee's performance relative to these standards, and
offer feedback to the employee so that he or she can eliminate deficiencies
and improve performance
v The appraisal is carried out periodically according to a definite plan
v It is not a past oriented activity. The intention is not to put poor performers in a
spot. Instead, it shows employees where things have gone wrong, how to set
things in order and deliver superior performance using their potential fully
v The focus of appraisals is on employee growth and development. It
forces managers to be coaches rather than judges.

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And Potential
Environment
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15-4

Objectives

The performance appraisal process serves several important

purposes
v Compensation decisions
v Promotion decisions
v Training and development programmes
v Feedback to the employee
v Personal growth and development

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15-5

Benefits

Benefits of performance appraisal

Employer perspective [Administrative uses]
v Despite imperfect measurement techniques, individual differences in performance
can make a difference to company performance.
v Documentation of performance appraisal and feedback may be required for legal
defence.
v Appraisal offers a rational basis for constructing a bonus or merit system.
v Appraisal dimensions and standards can help to implement strategic goals and
clarify performance expectations.
Employee perspective [developmental purposes]
v Individual feedback helps people to rectify their mistakes and get ahead, focusing
more on their unique strengths.
v Assessment and reorganisation of performance levels can motivate employees to
improve their performance.

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What is to be appraised?

The content to be appraised is determined on the basis of job analysis.

Usually it comprises of:
v Behaviours, including observable physical actions, movements
v Objectives which measure job related results
v Traits which are measured in terms of personal characteristics

Who will appraise?

v Supervisors
v Peers
v Subordinates
v Users of services
v consultants
v Self appraisal

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When to appraise?

v Conducted informally
v Carried out systematically at regular intervals, sticking to a definite
plan

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Environment
Appraisal
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The Performance Appraisal Process

Steps in the performance appraisal

process
v Establish performance standards
These are benchmarks against which performance is measured.
They should relate to the desired results of each job
They must be clear to both the appraiser and the appraisee.
Good performance goals should speak about
v What is the task to be accomplished?
v What will it look like when it is accomplished?
v When must it be completed?
v What are the cost considerations?
v What are the likely payoffs to the employee?

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The Performance Appraisal Process

v Communicate the standards

The Appraiser should prepare job descriptions clearly
v Help the appraisee set own goals and targets
v Analyse results objectively
v Offer coaching and guidance
The Appraisee should be clear about what he is doing and why he is doing

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The Performance Appraisal Process

v Measure actual performance

Use reliable and dependable performance measures
These must be easy to use and report on critical behaviours that determine
performance
These would generally include: personal observation, statistical reports, oral
reports and written reports
These may be objective or subjective
Objective measures are generally quantitative, and include quality of production,
degree of training needed, accidents in a given period, absenteeism, length of
service etc. Such measures are used for evaluating lower level jobs
Subjective measures are based on opinions of those doing evaluation and are not
verifiable by others; generally used for evaluating middle level positions.

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The Performance Appraisal Process

v Compare actual performance with standards and discuss the

appraisal

Not an easy job

Emotional factors to be taken into account
Affects the self esteem of the appraisee
Criteria likely to be questioned, if the appraisal turns out to be negative

v Take corrective action, if necessary

Put out the fires

Set things in order
Arrive at new goals for achieving superior performance.

Performance
HRM In A Dynamic
And Potential
Environment
Appraisal