ITFT - HRD & Performance Appraisal

Human Resource DevelopmentDevelopment

ITFT College, Chandigarh 14/26/2014

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DEFINITION

It is a continuous process to ensure thedevelopment of employee competencies,dynamism, motivation and effectivenessin a systematic and planned way to meetcurrent and future job demands.current and future job demands.




Human Resource Development includes




Employee training




Employee career development




Performance management and development




Organization development.




Role of HRD




• Better performance

• Develops constructivemind and overallpersonality




• Develop each individual capabilities

• High motivation

• Need based training programsprograms




• Competency andexcellence

• Contribute towards theexcellence of technical andmanagement education

• Promotes creativity,innovation, human

Contd….

innovation, humandevelopment, respect anddignity

• Achieve excellence in everyaspect of working life

• Character building.




Manpower planning• Putting right number of people, right kind of people at the right

place, right time, doing the right things for which they are suited forthe achievement of goals of the organization. Human ResourcePlanning has to be a systems approach and is carried out in a setprocedure. The procedure is as follows:

• Analyzing the current manpower inventory• Analyzing the current manpower inventory• Making future manpower forecasts• Developing employment programmes• Design training programmes




Steps in Manpower Planning1.Analysing the current manpower inventory- Before a manager

makes forecast of future manpower, the current manpower statushas to be analysed. For this the following things have to be noted-

• Type of organization• Number of departments• Number of departments• Number and quantity of such departments• Employees in these work units




2. Making future manpower forecasts- Once the factorsaffecting the future manpower forecasts are known, planningcan be done for the future manpower requirements in severalwork units.

The Manpower forecasting techniques commonly employed bythe organizations are as follows:

Expert forecasts

Trend analysis


Trend analysis

Work load analysis

Work force analysis

Other methods



3. Developing employment programmes- Once thecurrent inventory is compared with future forecasts,the employment programmes can be framed anddeveloped accordingly, which will includerecruitment, selection procedures and placementplans.

4. Design training programmes- These will be basedupon extent of diversification, expansion plans,development programmes,etc. Training programmesdepend upon the extent of improvement intechnology and advancement to take place. It is alsodone to improve upon the skills, capabilities,knowledge of the workers.




Meeting manpower needs

Replacement of manpower

Meeting growing manpower needs

Meeting challenges of technological environment

Importance of Manpower Planning

Coping with change

Adjusting manpower requirements

Recruitment and selection of employees

Placement and training




Training Needs• Changing Technology• Quality Conscious Customer• Greater Productivity




• Stable workforce

• Increased safety

• Better management




Methods of Training




On the Job Training




Coaching

Job Rotation

Counseling

Job Rotation




Off the job Training




Classroom Method

Simulation

Sensitivity training




Case Study Method

Conference




Compensation & Wages

• It refers to widerange of financialand non financialrewards toemployees for theiremployees for theirservices




Compensation & Wages• The system of

compensation shouldbe so designed that itachieves the followingobjectives:

• Capable employees areattracted towards theattracted towards theorganizations.

• The employees aremotivated for betterperformance.

• The employees do notleave the employerfrequently.ITFT College, Chandigarh 264/26/2014



Consideration in developing a compensation plan

• Wage policies should be carefully developed, having in mind the interests of

• Management as the representative of the owners• The employees• The consumers• The community




• Wages policies should be clearly expressed inwriting to ensure uniformity and stability.

• Wage decision should be checked against thecarefully formulated policies.

• Management should see to it that employeesunderstand and know the wage policy.




• Wage policies should be evaluated from timeto time to make certain that they are adequatefor present need.

• Department performance should be checkedperiodically against the standards set inadvance.advance.

• Job description and performance ratingsshould be checked periodically to keep themup to date.




Incentive programmes

Sales Incentives


Bonus



Skill Based Pay

Merit Pay




Profit Sharing

Employee Stock

Ownership Plan (ESOP)ITFT College, Chandigarh 324/26/2014



Methods of Wage payments and Incentive Plans

• Time Wage System

• Piece Wage System




Time Wage System: Advantages• It is the simplest and the oldest method. It is easy to

understand and workers can easily compute theirown remuneration.

• Earnings of workers are regular and fixed and they donot suffer from temporary loss of efficiency.not suffer from temporary loss of efficiency.

• As there is no pressure to speed up production, thequality of work can be kept high. A worker can showhis skill.

• Learners can concentrate on learning the bestmethods of work as their earning s are not dependenton the amount of work.

• It is an objective method.




Disadvantages• The method provides no incentive for better performance

as reward is not proportionate to effort.• Guaranteed remuneration makes workers indifferent and

complacent.• Calculation of labor cost per unit is difficult as the total• Calculation of labor cost per unit is difficult as the total

wage bill does not change with the volume of production.• In the absence of an incentive to hard work, productivity

of labor becomes low unless close supervision is used.Thus, costs of supervision are high.

• Control over labor cost becomes difficult and morepayment may be made for the lesser amount of work.




Time wage system is suitable under following conditions:

• Where units of output are non-measurable an in caseof office work and mental work is involved as in policyworking.

• When quality of work is especially important, e.g.,artistic furniture, fine jewelry, etc.artistic furniture, fine jewelry, etc.

• When supervision is good and supervisors know whatconstitutes a “fair day’s work”.

• When workers are new and learning the job.• When collective efforts of a group of persons are

essential for completing the job.




Piece Wage System: Advantages• There is a direct relation between effort and reward;

workers who work hard and produce more get morewages. This provides an incentive to increaseproductivity.

• Ambitious and efficient workers are provided ample• Ambitious and efficient workers are provided ampleopportunity to utilize their talent and increase theirearnings and thereby improve their standard of livingand morale.

• The method is just and fair to all. Efficient workers getample reward, while shirkers are penalized. Itprevents soldiering on the job.




• Management can distinguish betweenefficient and inefficient workers for thepurpose of promotion, etc.

• Increase in productivity results in higheroutput and lower costs of production per unit.

• The cost of labor per unit of output can beeasily calculated as the wage bill varies ineasily calculated as the wage bill varies indirect proportion to the output.

• As workers themselves have a stake inmaximization of efficiency, cost of supervisionis low.

•




Disadvantages• It is very difficult to fix piece wage rates. Employers often cut the

piece rate when they find workers are producing largequantities.

• The earnings of workers are not stable and they may suffer dueto temporary delays or difficulties. They feel insecure anddissatisfied.dissatisfied.

• Employees may not stress quality so that rigid quality controlbecomes necessary.

• This system may create jealousy between efficient andinefficient workers. Trade unions do not like it as it affects theirsolidarity.

• Detailed records of production have to be kept so that theclerical work is increased. The method is not practicable whencontribution of individual workers cannot be calculated, i.e.,construction work.




Piece wage system is suitable under the following conditions:• When work done by an individual worker can be measured

accurately, e.g., production of standardized goods in thefactory.

• When the quantity of output depends directly upon the skilland efforts of the worker.

• Where the flow of work is regular and interruptions areminimum i.e., repetitive jobs.minimum i.e., repetitive jobs.

• Where quality and workmanship are not very important.• In large scale production involving heavy overheads and

heads and broad supervision.• When methods of production are standardized and the job

is of a repetitive nature.







Performance Appraisal• Performance appraisal is a method of evaluating the

behaviour of employees in the work place normallyincluding both the quantitative and qualitative aspectsof job performance.

• Performance refers to the degree of accomplishment ofthe tasks that make up an individual’s job. It indicateshow well an individual is fulfilling the job demands.




Importance of Performance Appraisal

• Performance appraisal is the systematicdescription of an employee’s job relevantstrengths and weakness.strengths and weakness.

• The basic purpose is to find out how well theemployee is performing the job and establisha plan of improvement.




• Appraisal is arranged periodically according toa definite plan.

• Performance appraisal is not job evaluation.Performance appraisal refers to how well;Performance appraisal refers to how well;someone is doing the assigned job. Jobevaluation determines how much a job isworth, to the organization and therefore,what range of pay should be assigned to thejob.




Provide data for evolving

development plans for individuals

Provides inputs for decisions on

transfers, promotions etc.

Help to achieve organization’s task

through guided efforts of individuals

Objectives of Performance Appraisal

Performance appraisal system

Provide data in terms of needs aspirations of individuals to review company policies and

structure

Enables clarification of expectations between

superiors and subordinates

for individuals etc.




Self Appraisal




Peer evaluation

Staff evaluation




360 Degree Appraisal




QuestionsQ1 What is human resource development?

What are the roles of HRD?Q 2 What is Performance Appraisal? Explain the

various methods of performance appraisal?Q 3 What is Training? What are the various

methods of training?methods of training?Q 4 What are incentives? What are the various

considerations in developing compensation?







Date post:	07-Nov-2014
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ITFT - HRD & Performance Appraisal

Education