Assignment of H.R.M Aras

8/6/2019 Assignment of H.R.M Aras

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Prepared by,

Name- Araskumar A patel

Roll no- 16Sub- H.R.M

Class-M.L.W[jr]

Submitted to,

Mrs. Sujatha Sony Onattu

M.L.W department

Assignment of "H.R.M"


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1.1 Performance management System:

Performance appraisal must convey to employees how well

they have performed on established goals. Its also desirable tohave these goals and performance measures mutually se betweenthe employees and supervisor. Without proper two-way feedback

about ones affords and its effect on performance we run the risk

of decreasing an employees motivation. However, equallyimportant to feed back Is the issues development. By development,

we are referring to those areas in which employees has a

deficiency or weakness, or an area that simply could be better if

some effort was expended to enhance performance.Ex

ample:suppose a college professor demonstrates extensive knowledge in

his or her field and conveys this knowledge to student in an

adequate way. Although this individuals performance may be

regarded as satisfactory, his or her peers may indicate that some

improvement could be made. In this case, then development mayinclude exposure to different method teaching , such as bringing

into the classroom more experiential. Real-world applications,

internet applications case analyses and so forth.Finally comes the issues of documentation. A performance

evolution system would be remiss if it did not concern itself with

the legal aspect of employee performance. Those jobs relatedmeasures must be performance supported when and HRM decision

to terminate an employee. Although the supervisor cities

performance matters as the reason for the discharge, a review of

recent performance appraisal of this employee indicate that

performance was emulated as satisfactory for the last two review

periods. Accordingly, unless this employees performancesignificantly decreased, personnel record does not support the

supervisors decision. This critique by HRM is absolutely critical-to ensure that employees are fairly treated and that the

organizational protected.


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Because documentation issues are prevalent in todays

organization, HRM must make the effort to ensure that theevaluation systems used support the legal needs of the

organization. However, even though the performance appraisal

process is greeted to serve the organization, we should alsorecognize two other important players in the process: employees

and their appraisers. Though timely and accurate feedback and

development we can better serve employee needs. In doing so, wemay also be in a better position to show the effort-performance

linkage.

Next we should keep in mind the needs of the appraiser. If

feedback, development and documentation are to faction

effectively, appraisers must have a performance system that isappropriate for their needs- a system that facilities giving feedback

and development information to their employees, and one that

allows for employees input.Example: if appraisers are required to

evaluate their employees using inappropriate measures , or answerquestion about employees that have little bearing on the job, then

the system may no provide the same benefit as one where such

negative are removed. In contras to evolutions used decades ago,its acceptable, and absolutely necessary, for the evolution criteria

used to be different foe same jobs. Tailoring the evolution process

to the job analysis and the evaluation system that is satisfactoryand one that is an integral part of the HRM process. s

To create the performance management system we desire,

however, we must recognize that difficulty in the process may

exist. We must luck for ways to either overcome this difficulty or

deal with them more effectively. Lets turn our attention to thesechallenges.


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1.2What difficulties exist in performance management

system?

When you consider that three constituencies coexist in this

process- employees appraisal and organizational-coordinating the

need of each may cause problems.

1.The focus on the individual,

2.The focus on the process.

1.The focus on the individual: Do you remember the last timeyou received a graded test from a professor and felt that

something was marked in correct that wasnt wrong, or that

your answer was too harshly penalized? How did you feel about

that? Did you accept the score and leave it at that, or did you

question the instructor? Whenever performance evaluation is

administered, we run into the issue of having people seeing

eye-to-eye on the evaluation. Appraising individuals is probably one of the more difficulty aspects of a supervisors

jobs.

When that occurs, it may lead to a situation in which

emotions over come both parties. This is not the way for

evaluations to be handled. Accordingly, our first concern in the

process is to remove the emotion difficulty from the process.

When emotion do not run high in this meetings, employee

satisfaction of the process increases, and additionally, this

satisfaction carries into future jobs activities, where both the

employee and supervisor have opportunities to have ongoing

feedback in an effort to fulfill job expectations.


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1.3 Performance Appraisal

2.The focus on the process:

Whenever performance evaluation are conducted, there is

a particular structure that must be follow this structure exists to

facilitated the documentation process often allows for some of aquantifiable evaluation. Additionally , HRM polices often exist

that dictate performance outcome.

Because difficulties may arise, we should begin to

develop our performance appraisal process so that we can

achieve maximum benefit from it. This maximum benefit can

be translated in to employee satisfaction with the process. Such

satisfaction is achieved by creating an understanding of the

evaluation criteria used, permitting employee participation in

the process, and a allowing for development need to be

addressed. To begin doing so requires us to initially understand

the appraisal process.

Performance appraisal, employee appraisal, performance

review, or (career) development discussion is a method by

which the job performance of an employee is evaluated(generally in terms of quality, quantity, cost, and time) typically

by the corresponding manager or supervisor. A performance

appraisal is a part of guiding and managing career development.

It is the process of obtaining, analyzing, and recordinginformation about the relative worth of an employee to the

organization. Performance appraisal is an analysis of an

employee's recent successes and failures, personal strengths and

weaknesses, and suitability for promotion or further training. It


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Appraisal Process


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1.ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is thesetting up of the standards which will be used to as the base to

compare the actual performance of the employees. This step

requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of

their contribution to the organizational goals and objectives.

The standards set should be clear, easily understandable and inmeasurable terms. In case the performance of the employee

cannot be measured, great care should be taken to describe the

standards.

2.COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to

communicate the standards to all the employees of the

organization. The employees should be informed and the

standards should be clearly explained to the. This will helpthem to understand their roles and to know what exactly is

expected from them. The standards should also becommunicated to the appraisers or the evaluators and if

required, the standards can also be modified at this stage itself

according to the relevant feedback from the employees or theevaluators.

3. MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is

measuring the actual performance of the employees that is the

work done by the employees during the specified period of

time. It is a continuous process which involves monitoring the


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performance throughout the year. This stage requires the

careful selection of the appropriate techniques of measurement,

taking care that personal bias does not affect the outcome of the

process and providing assistance rather than interfering in anemployees work.

4. COMPARING THE ACTUAL WITH THE DESIRED

PERFORMANCE

The actual performance is compared with the desired or the

standard performance. The comparison tells the deviations in

the performance of the employees from the standards set. The

result can show the actual performance being more than the

desired performance or, the actual performance being less than

the desired performance depicting a negative deviation in the

organizational performance. It includes recalling, evaluating

and analysis of data related to the employees performance.

5. DISCUSSING RESULTS

The result of the appraisal is communicated and discussed

with the employees on one-to-one basis. The focus of this

discussion is on communication and listening. The results, the

problems and the possible solutions are discussed with the aim

of problem solving and reaching consensus. The feedback

should be given with a positive attitude as this can have aneffect on the employees future performance. The purpose of

the meeting should be to solve the problems faced and motivate

the employees to perform better.


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1.4Factors that can distort

Appraisals

6. DECISION MAKING

The last step of the process is to take decisions which can be

taken either to improve the performance of the employees, takethe required corrective actions, or the related HR decisions like

rewards, promotions, demotions, transfers etc.

The performance appraisal process and technique that we

have suggested present systems in which evaluator is free frompersonal bases, prejudices, and idiosyncrasies.

It would be native to assume, however, that all evaluators

impartially interpret and standardize the criteria upon which theiremployees will be appraised. This is particularly true of those jobs

that are not easily programmable and for which developing hard

performance standard is most difficult if not impossible, Such,jobs as researcher, teacher, engineer and consultant. In the place of

such standard, we can expert appraisers to use non-performance or

subjective criteria against which to evaluate individual.

1.Leniency Error: every evaluator has his or her own value

system that acts as a standard against which appraisal are made.

Relative to the true or actual performance an individual

exhibits, some evaluators mark high, while other mark low. The

former is referred to as positive leniency error, and the latter as

negative leniency performance, giving the individual a lower

appraisal. Example: assume a situation where both jones and

smith performing the same job for a differentsupervisor, with


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absolutely identical job performance. If joness supervisor tends

to err toward positive leniency while Smiths supervisor errs

toward negative leniency, we might be confronted with two

dramatically different evaluations.

2.Halo error: The halo error or effect is a tendency to ratehigh or low on all factors due to the impression of a high or

low rating on low rating on some specific factored.

Example: if an employees tends to be conscientious and

dependable, we might become biased toward that individual

to the extent that we will rate him or her positively many

desirable attribute.

3.Similarity Error: when evaluators rate other people in the

same way that the evaluators perception themselves, they are

similarity error. Based on the perception that evaluators

have of themselves, they project those perceptions onto

others.

Inappropriate

substitute

Inflatio

narypressure

Centratendency

S m ar tyerror

Haloerror

Leniencyerror


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4.Low Appraiser Motivation: what are the consequences of

the appraisal? If the evaluator knows that a poor appraisal

could significantly hurt the employees future-particularlyopportunities for promotion or a salary increase- the

evaluator may be reluctant to give a realistic appraisal. There

is evidence that it is more difficult to obtain accurate

appraisal when important rewards depend on the result.

5.Central Tendency: It is possible that regardless of who the

appraiser evaluates and what traits are used, the pattern of

evaluation remains the same. It is also possible that the

evaluators ability to appraise objectively and accurately has

been impeded by a failure to use the extremes of the scale.

When this happens, we call the action central tendency.

Central tendency is the reluctance to make extreme ratings ;

the inability to distinguish between and among rates; a form

of range restriction. Example: if a supervisor rates all

employees as 3, on a scale of 1 to 5, then no differentiation

among the employees exists. Failure to rate employees as 5,

for those who deserve that rating, and as 1 , if the case

warrants it will only create problems, especially if this

information is used pays increase.

6.Inflationary pressures: A middle manager in a large

Georgia-based company could not understand why he had been passed over for promotion. He had seen his file and

knew that his average rate in by supervisor was 88 . given

his knowledge that the appraisal system defined

outstanding performance at 90 at above ,good as 80 or


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above , average a 70 or above, and inadequate

performance as anything below 70, he was at loss to

understand why he had not been promoted considering his

near-outstanding performance Appraisal.

7.Inappropriate Substitutes for performance: It is the

unusual job where the definition of performance is

absolutely clear and direct measures are available for

appraising the incumbent. In many jobs it is difficult to get

consensus on what is a good job, and it is even more

difficult to get consensus on what criteria will determine

performance. For a salesperson the criteria are affected by

factors such as economic and action of competitors- factors

outside the salespersons control. As a result, the appraisal is

frequently made by using substitutes for performance

criteria that, it is believed, closely approximate performance

and act in its place. Example: to find organization using

criteria such as effort enthusiasm, neatness, positive attitude ,

conscientiousness, promptness and congenially as substitutes

for performance.


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The fact that evaluators frequently encounter problems with

performance appraisals should not lead us to throw up our handsand give up on the concepts. There are things that can be done to

make performance appraisals more effective. In this section, we

offer some suggestions that can be considered individually or incombination.

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1.Use Behaviour-based measure: As we have pointed output,

the evidence favours behaviour-based measures over that

1.5 Creating more effective performance mgt

systems

666

SUCCE

SS

Use behaviour-based measures

Combine absolute and relative

Provide on oin

Have multi le

Rate

Train


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development around traits. Many traits considered to be related

to good performance many, in fact, little or no performance

relationship. Traits like loyalty, initiative, courage, reliability,

and self-expression are intuitively appealing as desirablecharacteristics in employee. We know that there are employees

who rate high on these characteristics and poor performance.

Our conclusion is that traits like loyalty and initiative may be

prized by appraisers, but there is no evidence to support the

notion that certain traits will be adequate synonyms for

performance in a large cross section of jobs.

2.Combine Absolute and Relative Slandered: A major

drawback to individual or absolute slandered is that theytend to

be based by positive leniency; that is, evaluators lean toward

packing their subject into the high part of the ranking. On the

other hand, relative standards. When there is little actual

variability among the subject. The obvious solution is to

consider using appraisal methods that combine both absolute

and relative standards. Example: This dual method of

appraisal, incidentally has been instituted at some universities

to deal with the problems of grade inflation. Student get an

absolute grade A-B-C-D or F-and next to it is relative showing

how this student ranked in the class. A prospective employer or

graduated student admission committee can look at two student

who each got B in their international finance course and draw

considerably different conclusions about each when next to one

grade it say ranked 4th

out of 33 while other says ranked

17th

out of 21 clearly the latter instructor gave a lot more high

grades.


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3.Provide ongoing feedback: several years back, a nationwide

motel chain advertised, The best surprise is no surprise. This

phrase clearly applies to performance appraisals. Employees

like to know how they are doing. The annul review where the

appraiser shares the employees evaluation with them, can

become a problem. In some shares the employees merely

because appraisal is negative. This creates an extremely trying

experience for both the evaluator and employee.

4.Have multiple raters: As the number of raters increases, the

probability of attaining more accurate information increases. If

rater error tends to follow a normal curve, an increase in the

number of raters will tend to find the majority clustering about

the middle. If a parson has had 10 supervisors, nine of whom

rated him or her excellent and one poor, then we must

investigate what went into that one. Maybe this rater was the

one who indentified an area of weakness where training is

needed, or an area to be avoided in future job assignments.

5.Rate Selectively: It has been suggested that appraisers should

rate only in those area in which they have signification job

knowledge. If ratters make evaluations on only those

dimensions for which they are in good position to rate, we can

interest the inter-ratter agreement and make the evaluation a

more valid process.The specific application of this concept result in having

immediate supervisors or coworkers as the major input into the

appraisal and having them evaluate those factors that they are

best qualified to judge. Example: it has been suggested that


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when professors are evaluating secretaries within a university,

they use such criteria as judgement, technical competence and

conscientiousness, where peers use such criteria as job

knowledge, organization, and corporation with coworkers, andresponsibility. Such an approach appears both logical and more

reliable, since people are appraising only that dimension of

which they are in a good position to make judgment.

6.Train appraisers: If you cannot find good ratters the

alternative is to make good ratters. Evidence indicates that the

training of appraisers can make them more ratters. Common

errors such as halo and leniency can be minimized or

eliminated in workshops where supervisors can practice

observing and rating behaviour. Why should we bother to train

these individual? Because a poor appraisal is worse than no

appraisal at all. These negative effects can manifest themselves

as demoralizing employees , decreasing, productivity, and

making the company. Liable for wrongful termination

damages.

Wages:

The aggregate earning of an employee for giving period of

time. Such as a day or a week or a month and equal to the product

4.1 Compensation Management


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of an hourly rate. Time is no. of hours or product of a piece. Piece

rate is times of the piece + any premium or bonus earns.

Salary:

A compensation to an employee for personnel service render

on a weekly, monthly or annual basis. Salary is usually associated

with office employees, supervisors, managers, professionals and

technical staff.

Objectives of Compensation Management:

1. Establishment fair & equitable structure of remuneration.

2. Using as an incentive for greater productivity.

3. To maintain a good public image.

4. To attract talented personnel.

For fixing compensation to different jobs, it is essential that there

is internal equity and consistency among different job holders. Job

evaluation aims to provide this equity and consistency by

refinancing the relative worth of different jobs in an organization.

Job evaluation is the process of determining the relative worth of

different categories of jobs by analyzing their responsibilities and

4.2 Job evaluation


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consequently, fixation of their remuneration. International labour

Organization has defined job evaluation as follows:

The I.L.O. defines job evaluation as an attempt to determine and

compare demands which the normal performance of a particular

job makes on normal workers without taking into accounts the

individual abilities or performance of the workers concerned.

The definition of job evaluation provided by ILO has been adoptedby others. For example, According to Wendell French has defined

job evaluation as follows:

Job evaluation is a process of determining the relative worth of

the various jobs within the organization, so that differential wages

may be paid to jobs of different worth. The relative worth of a job

means relative value produced. The variables which are assumed to

be related to value produced are such factors as responsibilities,

skills, efforts and working conditions.

y Process of job evaluation

1.Job Analysis:

Job evaluation process starts with the base provided by job

analysis. Job analysis identifies various dimensions of a job in

two forms: Job Description and Job Specification. Job


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description provides responsibilities involved in the

performance of the job while job specification provides

attributes required in the job performer. Both these taken

together provide information about various factors involved in

different jobs.

2. Appointment of Committee for job Evaluation:

As we know that job evaluation is a specialized function and is

carried on by a committee consisting of members drawn from

different line departments of the organization, outside experts,

besides HR personnel. HR person generally acts as committee

convener or chairman of the committee. The committee should

include several people who are familiar with the jobs in question,

each of whom may have different perspective regarding thenature of the jobs. And also if the committee is composed at least

partly of employees, the committee approach can ensure greater

employee acceptance of the job evaluation results. An evaluation

committee performs three important functions: it identifies key

jobs, it selects compensable factors and it actually evaluates the

worth of each job.

3.Training for Job evaluation:


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Since members of the job evaluation committee are drawn

from different fields, they should be provided brief training for

job evaluation. Armstrong observes that the training should be

given through a series of meetings in which the following issues

are generally discussed and doubts cleared

a. What is job evaluation?

b. Why does this company need job evaluation?

c. How will it work?

d. How does it affect promotion policy?e. How will the system be kept up to date?

f. Does job evaluation mean that everyone whose job is in the same

grade gets the same rate of pay?

g. How does the publication of job grades and salary bands affect

confidentially?

h. How does the system cater to additions or alterations in jobs?

I. What happens if an individual disagrees with his grading?

j. How quickly will appeals on grading be dealt with?

k. How will the company go about grading new jobs created as the

result of change or expansion?

4.Defining criteria for job evaluation:

Evaluation of a job or any other element, within or without

organisational context, is always comparative and for


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comparison, some evaluative criteria must exist. For job

evaluation, defining of criteria involves two aspects. First

there should be identification of critical factors involved in a job

which must be evaluated. These factors are responsibility, skills

and effort.Others factors which are relevant for considerations

are working conditions, difficulty subordinates to be supervised

etc. Secondafter identifying various factors, criteria in respect of

these have to be fixed. For fixing criteria some benchmarks has to

be established either by taking various jobs within theorganisation or the benchmark being used by the industry sector.

5.Selecting methods of Job Evaluation:

After fixing the criteria, the next step is the determination of

methods through which various criteria can be applied in job

evaluation. There are both quantitative and qualitative methods

which can be used. Since a particular method emphases on some

specific aspects and is completed in itself, usually a

combination of different methods has to be followed.

6.Job Classification:

Based on the results obtained by different methods used for

evaluating different factors in the job or the evaluation of the

whole job as such, various jobs are classified into different


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grades. This classification may produce a large number of jobs,

e.g. class three clerks, class two clerks, etc., senior clerk and so

on. These numbers are merged into one to have a grade. From

wage and salary administration point of view there may be

internal classification of a grade. The job classification is used

to build the hierarchy which shows the relative worth of

different jobs within the orgainsation. A job at a higher level of

hierarchy is more worthwhile as compared to that at the lower

level. Wages and salaries are fixed according to this ordering.

y Method of job evaluation

There are four basic methods of job evaluation:

1. Ranking method

2. Job grading method3. Point method

4. Factor compensation method

Out of these first two are non-quantitative and also known as

traditional, non analytical or summary methods. The last two are

quantitative techniques in evaluating a job.


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Incentives can be offered to groups, rather than individuals, whenemployees' tasks are interdependent and require cooperation

Advantages

Focuses the group on specific performance targets.

Since rewards are controllable by individuals, the programs can be

very motivational.

The program can be integrated with other corporate initiatives and

leads to improved communication and employee relations

Can be costly to install and administer.

De-emphasizes individual performance, which can result in

excessive peer pressure.

Requires open communication with employees on costs,

profitability, etc. If the performance targets are not carefully

selected, adverse results may occur.

Individual Incentives

merit pay plans(annual increase, based on performance)

piecework plans(pay based on number of units produced typically

in a specified time period)

4.3 Special Cases of Compensation

Group Incentives


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time-savings bonuses and commissions

Salaries of Top Managers

executive pay can run 400 times higher than that of the

average worker

competition for executive talent raises the price of hiring an

executive

high salaries can be a motivator for executives and lower-level

managers

Supplemental Financial Compensation

deferred bonuses paid to executives over extended time

periods, to encourage them to stay with the company

stock options allow executives to purchase stock in the

future at a fixed price

hiring bonuses compensate for the deferred compensation lostwhen leaving a former company

4.4Executive

Compensation Programs


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4.5 Major phases of

Compensation Management


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Phase 1 Job Analysis

Phase 2 Job Evaluation

Phase 3 Wage and Salary surveys

44

Phase 4 Pricing Jo

Matching Job Evaluation Worth and Market Worth

Pay range of each job

Job Ranking Job Grading Factor Comparison Point System

Deppt, ofLabour EmployeesAssociation

Professional

Association

Self Conducted

Survey

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Assignment of H.R.M Aras

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