Notes on staffing

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Notes on PPM Unit 3

Ram SinghLecturer

IET, Lucknow

MBA 011 : PRINCIPLES & PRACTICE OF MANAGEMENT

UNIT 3Staffing: Concept, System Approach, Manpower Planning, Job Design, Recruitment &

Selection, Training & Development, Performance Appraisal Directing: Concept, Direction and

Supervision Motivation: Concept, Motivation and Performance, Theories Of Motivation,Approaches for Improving Motivation, Pay and Job Performance, Quality of Work Life, Morale

Building.

Staffing

The systematic approach to the problem of selecting, training, motivating an retaininggood personnel in any organisation is referred to as staffing. The job of staffing isconcerned with recruitment and development of managers and their maintenance in ahigh spirit It entails management manpower planning with a view to recruiting andtraining executives. Also, it calls for the satisfaction of managerial wants through theprovision of individual motivation and the introduction of self-control on the part ofmangers. Management manpower planning involves an estimate of the present and

future requirements of executive positions in the enterprise. The demand for mangershas steadily grown in all progressive and expanding enterprises during the past severaldecades. In addition to this demand, existing managers require constant replenishmentbecause of their retirement, resignation, death or oven dismisal in some cases.

Accordingly, management manpower planning must be undertaken on a continuousbasis. But without studying the organisationstructure and its job requirements, the managerial positions can neither be planned norfilled. To make an effective manpower planning, organisation planning must begonethrough to find out the exact time when a certain number and type of managerialpersonnel are required in the enterprise.

HUMAN RESOURCE PLANNING/MANPOWER PLANNING

Def. of human resource planning Human resource planning can be defined as the process ofidentifying the number of people required by an organization in terms of quantity and quality.

All human resource management activities start with human resource planning. So we can say

that human resource planning is the principle/primary activity of human resource management.

From human resource planning the organization identifies how many people it hascurrently and how many people will be required in future. Based on this information major

human resource decisions are taken.

Process of HRP/MP//steps in HRP/MP

Human resource planning can be defined as the process of identifying the number ofpeople required by an organization in terms of quantity and quality. All human resource

management activities start with human resource planning. So we can say that human resourceplanning is the principle/primary activity of human resource management.

The process of HRP involves various steps they can be explained with the help of the

following diagram.


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Human resource planning

Personal requirement Forecast Personal supply forecast

Yes No

Requirement = supply

Personnel (100=125) Personnel (100=75)

Surplus Shortage

Layoff OvertimeTermination Recruitment/hiring

VRS Subcontracting

1. Personnel requirement forecast :-This is the very first step in HRP process. Here the HRP department finds

out department wise requirements of people for the company. The requirementconsists of number of people required as well as qualification they must

posses.

2. Personnel supply forecast :-In this step, HR department finds out how many people are actually availablein the departments of the company. The supply involves/includes number of

people along with their qualification.3. Comparison:-Based on the information collected in the 1

stand 2

ndstep, the HR department

makes a comparison and finds out the difference. Two possibilities arise from

this comparisona. No difference :-

It is possible that personnel requirement = personnel supplied. In this

case there is no difference. Hence no change is required.b. Yes, there is a difference :-

There may be difference between supply and requirement. The

Comparison

Differences


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difference may be

i. Personnel surplusii. Personnel shortage

4. Personnel surplus :-

When the supply of personnel is more than the requirement, we havepersonnel surplus. We require 100 people, but have 125 people. That is we

have a surplus of 25 people. Since extra employees increase expenditure of

company the company must try to remove excess staff by methods ofi. Layoff

ii. Terminationiii. VRS/CRS

5. Personnel shortage :-When supply is less than the requirement, we have personnel shortage. We

require 100 people; we have only 75 i.e. we are short of 25 people. In such

case the HR department can adopt methods like Overtime, Recruitment, Sub-contracting to obtain new employee

Advantages of HRP/need/importance/role/benefitsHuman resource planning can be defined as the process of identifying the number of

people required by an organization in terms of quantity and quality. All human resource

management activities start with human resource planning. So we can say that human resourceplanning is the principle/primary activity of human resource management.

The process of HRP plays a very important role in the organization. The importance of

HRP can be explained as follows.

1. Anticipating future requirement :-

Through this process of HRP, the company is able to find out how manypeople will be required in future. Based on this requirement the company

could take further actions. This method also helps the company to identify thenumber of jobs which will become vacant in the near future.

2. Recruitment and selection process :-The recruitment and selection process is a very costly affair for a company.

Many companies spend lakhs of rupees on this process. Therefore recruitmentand selection must be carried out only if it is extremely necessary. HRP

process helps to identify whether recruitment and selection are necessary or

not.

3. Placement of personnel :-

Since the HRP process is conducted for the entire organization, we canidentify the requirements for each and every department. Based on the

requirement, we can identify existing employees and place them on those jobswhich are vacant.

4. Performance appraisal :-HRP make performance appraisal more meaningful. Since feedback isprovided in performance appraisal and employee is informed about his future

chances in same company, the employee is motivated to work better.

Information for all this is collected from HRP process.5. Promotion opportunity :-


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2. Technical changes in the society :-Technology changes at a very fast speed and new people having therequired knowledge are required for the company. In some cases, company

may retain existing employees and teach them the new technology and in

some cases, the company have to remove existing people and appoint newpeople.

3. Organizational changes :-Changes take place within the organization from time to time i.e. thecompany diversify into new products or close down business in some areas

etc. in such cases the HRP process i.e. appointing or removing people will

change according to situation.

4. Demographic changes :-Demographic changes refer to things referring to age, population, composition

of work force etc. A number of people retire every year. A new batch of

graduates with specialization turns out every year. This can change the

appointment or the removal in the company.5. Shortage of skill due to labour turnover :-

Industries having high labour turnover rate, the HRP will change constantly

i.e. many new appointments will take place. This also affects the way HRPis implemented.

6. Multicultural workforce :-Workers from different countries travel to other countries in search of job.When a company plans its HRP it needs to take into account this factor also.

7. Pressure groups :-Company has to keep in mind certain pleasure. Groups like human rights

activist, woman activist, media etc. as they are very capable for creating

problems for the company, when issues concerning these groups arise,appointment or retrenchment becomes difficult.

Definition of VRS VRS refers to voluntary retirement scheme, when company faces the

problem of surplus labour, they have to remove the extra workers. This needs to be done to avoid

increase in cost. One of the methods used by the companies is the methods used by companies is

the VRS scheme.Under this scheme people have put in 20 or more number of years of service aregiven an option to opt for early retirement benefits and some other amount which is due to them

are paid when they leave the company.

JOB ANALYSIS, JOB DESIGN, JOB EVALUATION

Define job analysisA job is defined as a collection of duties and responsibilities which are given together to an

individual employee. Job analysis is the process of studying and collecting information relatingto operations and responsibilities of a specific job. It can be explained with the help of the

following diagram

Job analysis

Job description Job specification


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Job title/ name of the job QualificationWorking hours Qualities

Duties and responsibilities Experience

Working conditions Family backgroundSalary and incentives Training

Machines to be handled on the job Interpersonal skills

As mentioned in the above table job analysis is divided into 2 parts

a) Job description -where the details regarding the job are given.

b) Job specification -where we explain the qualities required by people applying for the job.

Need/importance/purpose/benefits of job analysis

Def: - A job is defined as a collection of duties and responsibilities which are given together to

an individual employee. Job analysis is the process of studying and collecting information

relating to operations and responsibilities of a specific job.The following are the benefits of job analysis.

1. Organizational structure and design :-Job analysis helps the organization to make suitable changes in the organizational

structure, so that it matches the needs and requirements of the organization. Duties are

either added or deleted from the job.

2. Recruitment and selection :-Job analysis helps to plan for the future human resource. It helps to recruit and

select the right kind of people. It provides information necessary to select the rightperson.

3. Performance appraisal and training/development :-Based on the job requirements identified in the job analysis, the company decides

a training program. Training is given in those areas which will help to improve the

performance on the job. Similarly when appraisal is conducted we check whether the

employee is able to work in a manner in which we require him to do the job.4. Job evaluation :-

Job evaluation refers to studying in detail the job performance by all individual.

The difficulty levels, skills required and on that basis the salary is fixed. Information

regarding qualities required, skilled levels, difficulty levels are obtained from job

analysis.5. Promotions and transfer :-

When we give a promotion to an employee we need to promote him on the basisof the skill and talent required for the future job. Similarly when we transfer an employee

to another branch the job must be very similar to what he has done before. To take these

decisions we collect information from job analysis.6. Career path planning :-

Many companies have not taken up career planning for their employees. This is

done to prevent the employee from leaving the company. When we plan the future career


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of the employee, information will be collected from job analysis. Hence job analysis

becomes important or advantageous.7. Labour relations :-

When companies plan to add extra duties or delete certain duties from a job, they

require the help of job analysis, when this activity is systematically done using jobanalysis the number of problems with union members reduce and labour relations

improve.

8. Health and safety :-Most companies prepare their own health and safety, plans and programs based

on job analysis. From the job analysis company identifies the risk factor on the job and

based on the risk factor safety equipments are provided.

9. Acceptance of job offer :-When a person is given an offer/appointment letter the duties to be performed by

him are clearly mentioned in it, this information is collected from job analysis, which is

why job analysis becomes important.

Methods of job analysis

Def: - A job is defined as a collection of duties and responsibilities which are given together toan individual employee. Job analysis is the process of studying and collecting information

relating to operations and responsibilities of a specific job.

There are different methods used by organization to collect information and conduct the jobanalysis. These methods are

1. Personal observation :-In this method the observer actually observes the concerned worker. He makes a

list of all the duties performed by the worker and the qualities required to perform those

duties based on the information collected, job analysis is prepared.2. Actual performance of the job :-

In this method the observer who is in charge of preparing the job analysis actually doesthe work himself. This gives him an idea of the skill required, the difficulty level of the

job, the efforts required etc.

3. Interview method :-In this method an interview of the employee is conducted. A group of experts conduct theinterview. They ask questions about the job, skilled levels, and difficulty levels. They

question and cross question and collect information and based on this information job

analysis is prepared.

4. Critical incident method :-In this method the employee is asked to write one or more critical incident that has taken

place on the job. The incident will give an idea about the problem, how it was handled,qualities required and difficulty levels etc. critical incident method gives an idea about

the job and its importance. (a critical means important and incident means anything

which takes place in the job)5. Questionnaire method :-

In this method a questionnaire is provided to the employee and they are asked to answer

the questions in it. The questions may be multiple choice questions or open ended


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questions. The questions decide how exactly the job analysis will be done. The method is

effective because people would think twice before putting anything in writing.6. Log records :-

Companies can ask employees to maintain log records and job analysis can be

done on the basis of information collected from the log record. A log record isa book in which employees record /write all the activities performed by them

on the job. The records are extensive as well as exhausted in nature and

provide a fair idea about the duties and responsibilities in any job.7. HRD records :-

Records of every employee are maintained by HR department. The record contain details

about educational qualification, name of the job, number of years of experience, duties

handled, any mistakes committed in the past and actions taken, number of promotionsreceived, area of work, core competency area, etc. based on these records job analysis

can be done.

Job design

Definitions: - (2marks)

Job design is the process of

a) Deciding the contents of the job.b) Deciding methods to carry out the job.c) Deciding the relationship which exists in the organization.

Job analysis helps to develop job design and job design matches the requirements of the job with

the human qualities required to do the job.

Factors affecting job design: - There are various factors which affect job design in thecompany. They can be explained with the help of diagram.

Factors affecting job design

Organizational factors Behavioral factors Environmental factors

Task characteristics Feed back Employee availability and ability

Process or flow of work Autonomy Social and cultural expectations

Ergonomics VarietyWork practices

I] Organizational factors :-


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Organizational factors to refer to factors inside the organization which affect job design

they area) Task characteristics :-

Task characteristics refer to features of the job that is depending on the type of job and

the duties involved in it the organization will decide, how the job design must be done.Incase the company is not in a position to appoint many people; a single job may have

many duties and vice versa.

b) The process or flow of work in the organization :-There is a certain order in which jobs are performed in the company. Incase the company

wishes it could combine similar job and give it to one person this can be done if all the

jobs come one after the other in a sequence.

c) Ergonomics:-Ergonomics refers to matching the job with physical ability and characteristics of the

individual and in providing an office environment which will help the person to complete

the jobs faster and in a comfortable manner.

d) Work practices :-Every organization has different work practices. Although the job may be the same the

method of doing the job differs from company to company. This is called work practice

and it affects job design.

II] Environmental factors :-

Environmental factors which affect job design are as followsa) Employee availability and ability :-

Certain countries face the problem of lack of skilled labour. They are not able to get

employees with specific education levels for jobs and have to depend on other countries

due to this job design gets affected.

b) Social and cultural expectations :-The social and cultural conditions of every country is different so when an MNC appoints

an Indian it has to take into account like festivals, auspicious time, inauspicious time, etc.to suit the Indian conditions. This applies to every country and therefore job design will

change accordingly.

III] Behavioral factors :-Job design is affected by behavioral factors also. These factors are

a) Feedback :-Job design is normally prepared on the basis of job analysis and job analysis requires

employee feedback based on this employee feedback all other activities take place. Many

employees are however not interested in providing a true feedback because of fear andinsecurity. This in turn affects job deign.

b) Autonomy :-Every worker desires a certain level of freedom to his job effectively. This is called

autonomy. Thus when we prepare a job design we must see to it that certain amount of

autonomy is provided to the worker so that he carries his job effectively.c) Variety :-

When the same job is repeated again and again it leads to burden and monotony. This

leads to lack of interest and carelessness on the job. Therefore, while preparing job designcertain amount of variety must be provided to keep the person interested in the job.


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Methods of job design

There are various methods in which job design can be carried out. These methods help toanalysis the job, to design the contents of the and to decide how the job must be carried out

.these methods are as follows

I. Job rotationII. Job enlargement

III. Job enrichment

Job Rotation :-Job rotation involves shifting a person from one job to another, so that he is able to

understand and learn what each job involves. The company tracks his performance on

every job and decides whether he can perform the job in an ideal manner. Based on this he

is finally given a particular posting.Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned

to the marketing department whole he learns all the jobs to be performed for marketing at

his level in the organization .after this he is shifted to the sales department and to thefinance department and so on. He is finally placed in the department in which he shows the

best performance

Job rotation gives an idea about the jobs to be performed at every level. Once a person isable to understand this he is in a better understanding of the working of organization

Advantages of job rotation

1. Avoids monopoly :-Job rotation helps to avoid monopoly of job and enable the employee to learn

new things and therefore enjoy his job

2. Provides an opportunity to broaden ones knowledge :-Due to job rotation the person is able to learn different job in the organization

this broadens his knowledge.3. Avoiding fraudulent practice :-

In an organization like bank jobs rotation is undertaken to prevent employees

from doing any kind of fraud i.e. if a person is handling a particular job for avery long time he will be able to find loopholes in the system and use them for

his benefit and indulge ( participate ) in fraudulent practices job rotation

avoids this.

Disadvantages of Job Rotation1. Frequent interruption :-

Job rotation results in frequent interruption of work .A person who is

doing a particular job and get it comfortable suddenly finds himself shifted to

another job or department .this interrupts the work in both the departments.

2. Reduces uniformity in quality :-Quality of work done by a trained worker is different from that of a new

worker .when a new worker I shifted or rotated in the department, he takes

time to learn the new job, makes mistakes in the process and affects the


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quality of the job.

3. Misunderstanding with the union member :-Sometimes job rotation may lead to misunderstanding with members of the

union. The union might think that employees are being harassed and more

work is being taken from them. In reality this is not the case.

Job enlargement

There are various methods in which job design can be carried out. These methods help toanalysis the job, to design the contents of the and to decide how the job must be carried out

.these methods are as follows


III. Job enrichment

Job enlargement is another method of job design when any organization wishes to adopt

proper job design it can opt for job enlargement. Job enlargement involves combining variousactivities at the same level in the organization and adding them to the existing job. It increases

the scope of the job. It is also called the horizontal expansion of job activities.Job enlargement can be explained with the help of the following example - If Mr. A is

working as an executive with a company and is currently performing 3 activities on his job after

job enlargement or through job enlargement we add 4 more activities to the existing job so now

Mr. A performs 7 activities on the job.It must be noted that the new activities which have been added should belong to the same

hierarchy level in the organization. By job enlargement we provide a greater variety of activities

to the individual so that we are in a position to increase the interest of the job and makemaximum use of employees skill. Job enlargement is also essential when policies like VRS are

implemented in the company.

Advantages of job enlargement1. Variety of skills :-

Job enlargement helps the organization to improve and increase the skills of the

employee due to organization as well as the individual benefit.2. Improves earning capacity :-

Due to job enlargement the person learns many new activities. When such people apply

foe jobs to other companies they can bargain for more salary.

3. Wide range of activities :-Job enlargement provides wide range of activities for employees. Since a single

employee handles multiple activities the company can try and reduce the number ofemployees. This reduces the salary bill for the company.

Disadvantages of job enlargement

1. Increases work burden :-Job enlargement increases the work of the employee and not every company providesincentives and extra salary for extra work. Therefore the efforts of the individual may

remain unrecognized.

2. Increasing frustration of the employee :-


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In many cases employees end up being frustrated because increased activities do not

result in increased salaries.3. Problem with union members :-

Many union members may misunderstand job enlargement as exploitation of worker and

may take objection to it.


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Job enrichment

There are various methods in which job design can be carried out. These methods help to

analysis the job, to design the contents of the and to decide how the job must be carried out.These methods are as follows


III. Job enrichmentJob enrichment is a term given by Fredric Herzberg. According to him a few motivators are

added to a job to make it more rewarding, challenging and interesting. According to Herzberg

the motivating factors enrich the job and improve performance. In other words we can say thatjob enrichment is a method of adding some motivating factors to an existing job to make it more

interesting. The motivating factors can be

a) Giving more freedom.

b) Encouraging participation.c) Giving employees the freedom to select the method of working.d) Allowing employees to select the place at which they would like to

work.

e) Allowing workers to select the tools that they require on the job.f) Allowing workers to decide the layout of plant or office.

Job enrichment gives lot of freedom to the employee but at the same time increases the

responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies the

needs of the employees.

Advantages of job enrichment1. Interesting and challenging job :-

When a certain amount of power is given to employees it makes the job more challengingfor them, we can say that job enrichment is a method of employee empowerment.

2. Improves decision making :-Through job enrichment we can improve the decision making ability of the employee byasking him to decide on factory layout, method and style of working.

3. Identifies future managerial caliber :-When we provide decision making opportunities to employees, we can identify which

employee is better that other in decision making and mark employees for futurepromotion.

4. Identifies higher order needs of employees :-This method identifies higher order needs of the employee. AbrahamMaslows theory of motivation speaks of these higher order needs e.g. ego

and esteemed needs, self actualization etc. These needs can be achieved

through job enrichment.

5. Reduces work load of superiors :-Job enrichment reduces the work load of senior staff. When decisions are

taken by juniors the seniors work load is reduced.


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Disadvantages of job enrichment

1. Job enrichment is based on the assumptions that workers have complete knowledge totake decisions and they have the right attitude. In reality this might not be the case due to

which there can be problems in working.

2. Job enrichment has negative implications ie. Along with usual work decision makingwork is also given to the employees and not many may be comfortable with this.

3. Superiors may feel that power is being taken away from them and given to the juniors.This might lead to ego problems.

4. This method will only work in certain situations. Some jobs already give a lot of freedomand responsibility; this method will not work for such jobs.

5. Some people are internally dissatisfied with the organization. For such people no amountof job enrichment can solve the problem.

JOB EVALUATION

Defn : Job evaluation is defined as a procedure for determining the worth of the job and todetermine the level of compensation for the job

The objective of job evaluationis1.to provide a standard procedure for fixing salary

job evaluation aims to provide a standard procedure for fixing salary of employees

doing a particular job and belonging to a particular level in the organization . Thisis required so that the employee is remunerated according to his capabilities and

therefore feels satisfied on the job

2. to determine the rate of pay:

Job evaluation determines how much to pay the employee according to his efforts in

the organization . the rate of pay is decided by looking into various factors on thejob .

3. to ensure that wages and salaries are paid according to the qualification and workJob evaluation recognizes the importance of qualification of the employee and the

efforts put in by him on the job and decides the salary based on these factors. This

ensures that the employees are judged on similar factors and there is no bias.

4. to decide salary using scientific methods of evaluation:The job evaluation methods are scientific in nature, i.e they have been decided after

looking into the issues concerned with a scientific approach. Thus it is obvious that

the results too will be very much appropriate. Job evaluation is not based on

personal bias or personal choice.

5. Involves a fair study of the job factors to avoid ambiguity

Job evaluation studies the job factors in a fair and just manner so that ambiguitycan be avoided and the factors for judging the job are very clear and accurate. This

gives more credibility to the entire job evaluation process

Advantages of Job Evaluation1. Job evaluation is a very logical method which uses common factors to decide the salary

therefore there is no inequality


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2. new jobs are adjusted in the existing structure. They are added to the old jobs andevaluated on the same factors

3. There is greater simplification and uniformity in Job evaluation

Disadvantages of Job evaluation1. The job factors fluctuate and evaluation on these factors does not reflect the true value in

future

2. Job evaluation creates doubts and fear in the minds of the employees. They feel that theirefforts may not be evaluated properly

3. Job evaluation program/procedures takes a long time to be installed . It requires

specialized study by technical personnel so that it is accurate . Any evaluation for

namesake will not do.

Methods/Types of Job evaluation:

There are various types of Job evaluation. They canbe shown with the help of the following

diagram

JOB EVALUATION

Analytical methods non- analytical methods non- conventional methods

1. Point ranking mehtod 1. Ranking method

2. factor comparison 2. job grading methodmethod

I NON- ANALYTICAL METHODSThese methods do not use detailed job factors. Every job is determined as a whole in

determining its relative ranking. This non-analytical methods includes two types

A] ranking method

B] job grading method

Ranking method : This is the most inexpensive and the simplest methods of evaluation . Theevaluation committee assess the worth of each job on the basis of its title or its contents , if thecontents are available. Each job is compared with others and its place is determined. The

method has several drawbacks Job evaluation may be subjective as the jobs are not broken into

factors. Its difficult to measure entire jobs.

Job-grading method: It is also called job classification method. Like the ranking method this

method also does not call for a detailed or quantitative analysis of job factors. It is based on the

entire job. The difference between the ranking method and this method is that this method usesjob classes or grades to decide the salary. The number of grades is decided first and factors


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corresponding to the grades are decided later. Facts and information about the job are collected

and matched with the grades.The advantages are it is simple and inexpensive, the companies where the number of jobs is

small can use this method.

The disadvantages are job description is not very clear, it becomes difficult to convince anemployee as to why a particular job is put in a particular grade, the same schedule cannot be used

for all jobs

II ANALYTICAL METHODS:

This includes the point ranking and the factor comparison method. These methods can be

explained as follows:

A] Point ranking method: This method starts with the selection of job factors, construction of

degrees for each factor and assignment of points to each degree. Different factors are selected

for different jobs and every job has different degrees and different points

The advantages are1. a job is split into a number of factors. The worth of each job is determined on the basis of

each factor

2. The procedure adopted is systematic and can be easily explained to the employee3. the method is simple to understand and easy to administer

Atleast two defects are noted in this method1. Employees may not agree with the points allotted or the factors selected2. serious doubts are expresses about the point system and how it is assigned to the factors

B] factor comparison method: This method is yet another approach to job evaluation. It is an

analytical method. The method is started by selecting factors usually 5 factors are selectedi] mental requirement

ii] skill requirementiii] physical exertion

iv] responsibility

v] job condition

These factors are assumed to be constant for all jobs. Each factor is ranked individually withthe other jobs. For ex: A managers job will have more mental requirement than physical

exertion. So mental requirements will have a higher rank.

The total point values are assigned to each factor. The worth of the job is obtained by adding

together the point value.

The advantages of this method is that jobs which are different in nature are evaluated withthe same set of factors but the method is complicated when applied on a large scale.

RECRUITMENT SELECTION AND INDUCTION


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Define recruitment Recruitment is a process of searching for prospective employees and

stimulating them to apply for jobs.

Objectives of recruitmentRecruitment fulfills the following objectives

1. It reviews the list of objectives of the company and tries to achieve them by promotingthe company in the minds of public

2. It forecasts how many people will be required in the company.3. It enables the company to advertise itself and attract talented people.4. It provides different opportunities to procure human resource.

Methods of recruitment/sourcesRecruitment is a process of searching for prospective employees and stimulating them to apply

for jobs. Companies can adopt different methods of recruitment for selecting people in the

company. These methods are1. Internal sources2. External sources

The sources can be further explained with the help of following diagram

Sources of recruitment (manpower supply)

Internal source External sources

Promotion Management consultantDepartmental exam Employment agency

Transfer Campus recruitmentRetirement News paper advertisement

Internal advertisement Internet advertisement

Employee recommendation Walk in interview

Internal sources of recruitment:-

Internal sources of recruitment refer to obtaining people for job from inside the company. There

are different methods of internal recruitment1. Promotion :-

Companies can give promotion to existing employees. This method ofrecruitment saves a lot of time, money and efforts because the companydoes not have to train the existing employee. Since the employee has already

worked with the company. He is familiar with the working culture and

working style. It is a method of encouraging efficient workers.

2. Departmental exam :-This method is used by government departments to select employees for

higher level posts. The advertisement is put up on the notice board of the

department. People who are interested must send their application to the HRdepartment and appear for the exam. Successful candidates are given the


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higher level job. The method ensures proper selection and impartiality.

3. Transfer :-Many companies adopt transfer as a method of recruitment. The idea is to

select talented personnel from other branches of the company and transfer

them to branches where there is shortage of people.4. Retirement :-

Many companies call back personnel who have already retired from the

organization. This is a temporary measure. The method is beneficial because itgives a sense of pride to the retired when he is called back and helps the

organization to reduce recruitment selection and training cost.

5. Internal advertisement :-In this method vacancies in a particular branch are advertised in the noticeboard. People who are interested are asked to apply for the job. The method

helps in obtaining people who are ready to shift to another branch of the same

company and it is also beneficial to people who want to shift to another

branch.6. Employee recommendation :-

In this method employees are asked to recommend people for jobs. Since the

employee is aware of the working conditions inside the company he willsuggest people who can adjust to the situation. The company is benefited

because it will obtain.

Advantages of internal recruitment

1. Internal methods are time saving.2. No separate induction program is required.3. The method increases loyalty and reduces labour turnover.

4. This method is less expensive.

Disadvantages of internal recruitment1. There is no opportunity to get new talent in this method.2. The method involves selecting people from those available in the company so there is

limited scope for selection.

3. There are chances of biased and partiality.4. Chances of employee discontent are very high.

External methods/sources of recruitment

External sources of recruitment refer to methods of recruitment to obtain people from outside the

company. These methods are1. Management consultant :-

Management consultant helps the company by providing them withmanagerial personnel, when the company is on the look out for entry level

management trainees and middle level managers. They generally approach

management consultants.2. Employment agencies :-

Companies may give a contract to employment agencies that search, interview

and obtain the required number of people. The method can be used to obtainlower level and middle level staff.


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3. Campus recruitment :-When companies are in search of fresh graduates or new talent they opt forcampus recruitment. Companies approach colleges, management, technical

institutes, make a presentation about the company and the job and invite

applications. Interested candidates who have applied are made to go through aseries of selection test and interview before final selection.

4. News paper advertisement :-This is one of the oldest and most popular methods of recruitment.Advertisements for the job are given in leading newspapers; the details of the

job and salary are also mentioned. Candidates are given a contact address

where their applications must be sent and are asked to send their applications

within a specified time limit. The method has maximum reach and most preferredamong all other methods of recruitment.

5. Internet advertisement :-With increasing importance to internet, companies and candidates have started

using the internet as medium of advertisement and search for jobs. There arevarious job sites like naukri.com and monster.com etc. candidates can also

post their profiles on these sites. This method is growing in popularity.

6. Walk in interview :-Another method of recruitment which is gaining importance is the walk in

interview method. An advertisement about the location and time of walk in

interview is given in the news paper. Candidates require to directly appearingfor the interview and have to bring a copy of their C.V. with them. This

method is very popular among B.P.O and call centers.

Advantages of external recruitment

1. There is influx of new talent in the method.2. The method encourages more and more competition.3. There is lesser chance of partiality through this method.4. If options like campus recruitment have been exercised we get a chance to employ fresh

graduates, thus increasing employment.

Disadvantages of external recruitment1. The method is costly because it involves recruitment cost, selection, training cost.2. The method is time consuming.3. The method reduces loyalty to the company.

SelectionDefine selection :- Selection can be defined as process of choosing the right person for the

right job.

Process of selection:-

The process of selection is different in different companies; however a general procedureof selection can be framed. This process of selection can be explained with the help of following

diagram


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Process of selection

Job analysis

Advertisement

Application blank/form

Written test

Interview

Medical examination

Initial job offer

Acceptance/rejection letter

Final offer/letter of appointment

Induction

1. Job analysis :-The very first step in the selection procedure is the job analysis. The HR

department prepares the job description and specification for the jobs whichare vacant. This gives details for the jobs which are vacant. This givesdetails about the name of the job, qualification, qualities required and work

conditions etc.

2. Advertisement :-Based on the information collected in step 1, the HR department prepares anadvertisement and publishes it in a leading news papers. The advertisement

conveys details about the last date for application, the address to which the

application must be sent etc.

3. Application blank/form :-Application blank is the application form to be filled by the candidate when he

applies for a job in the company. The application blank collects informationconsisting of 4 parts- 1) Personal details 2) Educational details 3) Workexperience 4) Family background.

4. Written test :-The application which have been received are screened by the HR departmentand those applications which are incomplete are rejected. The other candidates

are called for the written test. Arrangement for the written test is looked after

the HR department i.e. question papers, answer papers, examination centersand hall tickets etc.

5. Interview :-


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Candidates who have successfully cleared the test are called for an interview.

The entire responsibility for conducting the interview lies with the HRdepartment i.e. they look after the panel of interviewers, refreshments,

informing candidates etc.

6. Medical examination :-The candidates who have successfully cleared the interview are asked to take a

medical exam. This medical exam may be conducted by the organization itself(army). The organization may have a tie up with the hospital or the candidate

may be asked to get a certificate from his family doctor.

7. Initial job offer :-Candidates who successfully clear the medical exam are given an initial job

offer by the company stating the details regarding salary, terms of employment,

employment bond if any etc. The candidate is given some time to think over

the offer and to accept or reject the offer.

8. Acceptance/ rejection :-Candidates who are happy with the offer send their acceptance within a

specified time limit to show that they are ready to work with the company.

9. Letter of appointment/final job offer :-Candidates who send their acceptance are given the letter of appointment. The

letter will state the name of the job. The salary and other

benefits, number of medical leaves and casual leaves, details of employmentbond if any etc. It will also state the date on which the employee is required to

start duty in the company.

10.Induction :-On the date of joining the employee is introduced to the company and other

employees through am elaborate induction program.


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Types of selection testDifferent selection test are adopted by different organization depending upon their requirements.

These tests are specialized test which have been scientifically tested and hence they are also

known as scientific test. Different types of test can be explained with the help of followingdiagram,

Types of selection test

Aptitude Intelligence Personality Performance test test

test test

1.Mental ability/

Intelligence test

2.Medical aptitudetest

3. Psycho motor test

I. Aptitude test :-Aptitude tests are test which assess the potential and ability of a candidate. It

enables to find out whether the candidate is suitable for the job. The job maybe managerial technical or clerical. The different types of aptitude test are

a. Mental ability/mental intelligence test :-This test is used to measure the over all intelligence and

intellectual ability of the candidate to deal with problems. It judges the

decision making abilities.

b. Mechanical aptitude test :-This test deals with the ability of the candidate to do mechanical work.

It is used to judge and measure the specialized knowledge and problem

solving ability. It is used for technical and maintenance staff.

c. Psycho motor test :-This test judges the motor skills the hand and eye co-ordination and

evaluates the ability to do jobs like packing, quality testing, quality

inspection etc.

II. Intelligence test :-This test measures the numerical skills and reasoning abilities of the

candidates. Such abilities become important in decision making. The testconsists of logical reasoning ability, data interpretation, comprehension skills

and basic language skills.

III. Personality test :-In this test the emotional ability or the emotional quotient is tested. This test

judges the ability to work in a group, inter personal skills,ability to understandand handle conflicts and judge motivation levels. This test is becoming very


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popular now days.

IV. Performance test :-This test judges and evaluates the acquired knowledge and experience of the

knowledge and experience of the individual and his speed and accuracy inperforming a job. It is used to test performance of typist, data entry operators

etc.

Induction (Induction = orientation)Induction can be defined as a process of introducing the employee who is newly elected

to the organization. When an employee is given a letter of appointment he joins the company on

duty. The very first thing that the company does is, introduces the new employee to theorganization and people working there.

An induction program may be conducted at a particular center for all employees or at

different places (branches of the company) for different employees. Normally the new employee

is called together to the staff training college for the induction program.The induction starts with an introduction session about the company, number of branches,

a brief history of the company, number of products, number of countries operating in,

organizational structure, culture, values, beliefs, the names of top management personnel etc.Apart from this introductory secession there will be other sessions also like sessions on

behavioral science, soft skill training, sessions on giving details about the job, salary, bonus,

information about different leaves that can be taken by the employee about upward mobility inthe organization etc.

There are different ways in which sessions can be conducted i.e. using lecture method,

power point presentation, group discussion, psychological test, roll play secessions etc.

The induction program concludes with the employee reporting for duty at his respective

branch after induction. When he reports for duty the senior most people in the branch takes thenew employee around the office and introduces to all other employees and gives information

about the working of the branch. The senior people regularly stay in touch with the newemployee in the first week so that he can make the new employee comfortable and help him to

adjust to the company.

After this the company may start a training program for the new employee.

Define placement: Companies conduct recruitment and selection and finally select employees.

The employees undergo an induction program. After the induction program is over the employee

is given a specific job in the company. This is called placement.

APPLICATION BLANK

Application blank is the application form of the company which must be filled by the

candidate when he applies for a job. Application blank gives information to the company


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about the prospective candidate. The information collected relates to personal details,

educational qualification, work experience, family background etc.

The personal details about the candidate include name , age, gender, date of birth, photograph for

identification, residential address etc.

Details regarding educational qualification include the name of the degree obtained, the name of

the university, subject studied, marks obtained and the year of passing. Information about

educational qualification is required by the company starting from matriculation exam to thelatest degree obtained. Any additional qualification obtained must also be mentioned.

In case of details about work experience information about the name of the company in which

the candidate has previously worked, number of years of experience , the designation held andthe reasons

for leaving the job are required.

Apart from these details the application blank also collects information about the family

background of the personi.e the number of persons in the family, their age and occupation , the

number of dependent members, the annual family income etc.

A proforma of the application blank helps to further explain the concept of application blank and

can be seen below


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STATE BANK OF INDIA

APPLICATION FOR THE POST OF __________________________

NAME :____________________________________________

____________________________________________

AGE________ DATE OF BIRTH____________ M/F_____

RESIDENTIAL ADDRESS

EDUCATIONAL QUALIFICATION:

DEGREE YEAR OF PASSING NAME OF UNIV % OBTAINED

(give information starting from matriculation onwards)ADDITIONAL QUALIFICATION:

DIPLOMA/ NAME OF INSTITUTE YEAR OF PASSING % OBTAINED

DEGREE

WORK EXPERIENCE:NAME OF POST DATE OF DATE OF NO OF REASON FOR

COMPANY HELD JOINING LEAVING YEARS LEAVING

FAMILY DETAILS: MARRIED/ SINGLE/ DIVORCED/ WIDOW(ER)______

NAME OF FAMILY RELATION AGE OCCUPATIONMEMBER

CONTINUED

PLEASE

AFFIX

PASSPORT

SIZE

PHOTO


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ANNUAL FAMILY INCOME:___________________________________

I HEREBY DECLARE THAT THE ABOVE GIVEN INFORMATION IS

TRUE . ANY DISCREPANCY IN THE ABOVE INFORMATION CANLEAD TO LEGAL ACTION AGAINST ME .

PLACE:

DATE : SIGNATURE OF CANDIDATE

HEADHUNTING

Headhunting refers to the activity of selection of senior level personnel like Board of Directors,

very senior level mangers of the co, etc.Head hunting originally meant hunting for the prizedperson and was undertaken by tribes . The same word has been adapted to management because

in this case the prized person is the member of the top level management

Head hunting is different from the normal selection process. In case of headhunting the process

of selection is handed over to agencies which specialize in this activity.

The company which requires top management personnel gives its requirements to the concernedagency, - i.e the qualities required ,the type of job to be done. , the responsibilities to be handled,

the desired profile etc .The agency now tries to find suitable candidates who may be employed in

other companies. This is done in a discrete and unobstructive manner. It is not publicized. The

agency selects 4 or 5 people who it feels are suited for the job and recommends them to the

company. The company in turn interviews all of them , talks to them about the current conditions, what is expected of them , their salary package is negotiated and finally the company selects a

person required by them. This selection method is different and is not publicized as in case oflower and middle level management positions.

TRAINING AND DEVELOPMENT

Define training/development/managerial development/executive development /mdp/edp:-


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Training is defined by Wayne Cascio as training consists of planed programs undertaken to

improve employee knowledge, skills, attitude, and social behavior so that the performance of theorganization improves considerably.

Training is normally viewed as a short process. It is applied to technical staff, lower, middle,

senior level management. When applied to lower and middle management staff it is called astraining and for senior level it is called managerial development program/executive development

program/development program.

OBJECTIVES/PURPOSE/GOALS OF TRAINI NG AND DEVELOPMENT



The purpose of training and development can be explained as follows.

1. Improving quality of work force :-

Training and development help companies to improve the quality of workdone by their employees. Training programs concentrate on specific areas.

There by improving the quality of work in that area.

2. Enhance employee growth :-Every employee who takes development program becomes better at his job.

Training provides perfection and required practice, therefore employees are

able to develop them professionally.

3. Prevents obsolescence :-Through training and development the employee is up to date with new

technology and does not fear when old technology is replaced with newtechnology and the fear of being thrown out of the job is reduced.

4. Assisting new comers :-Training and development programs greatly help new employees to get

accustomed to new methods of working, new technology, the work culture ofthe company etc .It helps them to gain confidence in themselves.

5. Bridging the gap between planning and implementation :-

Plans made by companies expect people to achieve certain targets withincertain time limit with certain quality. For this employee performance has to

be accurate and perfect. Training helps in achieving accuracy and perfection.

6. Health and safety measures :-

Training and development program clearly identifies and teaches employeesabout the different risk involved in their job, the different problems that can

arise and how to prevent such problems. This helps to improve the health andsafety measures in the company.

METHODS OF TRAINING OPERATING PERSONNEL/FACTORY WORKERSTraining is defined by Wayne Cascio as training consists of planed programs undertaken to


There are different methods of training for operating personnel (factory workers). Training these

workers becomes important because they handle equipment worth crores of rupees. The differentmethods can be explained with the help of following diagram.


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Methods of training operating personnel

On the job Apprenticeship Vestibule Job rotation Classroom

method method method method method

1. On the job training method :-In this method workers who have to be trained are taken to the factory,

divided into groups and one superior is allotted to every group. This superior

or supervisor first demonstrates how the equipment must be handled, and then

the worker is asked to repeat whatever he has observed in the presence of thesupervisor. This method makes it easy for the employee to learn the details

about specific equipment. Once the worker studies the first equipment thoroughly the

supervisor moves on to the next equipment and so on.

2. Apprenticeship training :-In this method both theory and practical session are conducted. The employee

is paid a stipend until he completes training. The theory sessions give

theoretical information about the plant layout, the different machines, theirparts and safety measures etc. The practical sessions give practical training in

handling the equipment. The apprentice may or may not be continued on the

job after training.

3. Vestibule training :-In this method of training an atmosphere which is very similar to the real job

atmosphere is created. The surroundings, equipment, noise level will be

similar to the real situation. When an employee is trained under such

conditions he gets an idea about what the real job situation will be like.Similarly when he actually starts doing the job he will not feel out of place.

This method is used to train pilots and astronauts. In some places graphics arealso used to create the artificial surroundings. This method involves heavy

investment.

4. Job rotation :-

In this method the person is transferred from one equipment to the other for a

fixed amount of time until he is comfortable with all the equipments. At the

end of the training the employee becomes comfortable with all the equipment.

He is then assigned a specific task.

5. Classroom method :-In this method the training is given in the classroom. Video clippings, slides, c

charts, diagrams and artificial models etc are used to give training.

Methods of training for managers/ methods of development / managerial development/executive

development


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Various methods are used to train personnel for managerial level jobs in the company. These

methods can be explained with the help of following diagram.

Methods of training managers

On the job training Off the job training

Job rotation Classroom method

Planned progression Simulation

Coaching and counseling Business games

Under study Committees

Junior boards ConferencesReadings

In-basket training

ON THE JOB METHOD:- On the job method refers to training given to personnel inside the

company. There are different methods of on the job training.

1. Job rotationThis method enables the company to train managerial personnel in

departmental work. They are taught everything about the department. Starting

from the lowest level job in the department to the highest level job. This helpswhen the person takes over as a manager and is required to check whether his

juniors are doing the job properly or not. Every minute detail is studied.2. Planned progression :-In this method juniors are assigned a certain job of their senior in addition to

their own job. The method allows the employee to slowly learn the job of his

senior so that when he is promoted to his seniors job it becomes very easy for

him to adjust to the new situation. It also provides a chance to learn higherlevel jobs.

3. Coaching and counseling :-Coaching refers to actually teaching a job to a junior. The senior person whois the coach actually teaches his junior regarding how the work must be

handled and how decisions must be taken, the different techniques that can be

used on the job, how to handle pressure. There is active participation from thesenior.Counseling refers to advising the junior employee as and when he faces

problems. The counselor superior plays an advisory role and does not actively

teach employees.

4. Under study :-In this method of training a junior is deputed to work under a senior. He takes

orders from the senior, observes the senior, attends meetings with him, learns

about decision making and handling of day to day problems. The method


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is used when the senior is on the verge of retirement and the job will be taken

over by the junior.

5. Junior board :-

In this method a group of junior level managers are identified and they work ttogether in a group called junior board. They function just like the board of

directors. They identify certain problems, they study the problem and providesuggestions. This method improves team work and decision making ability. It gives

an idea about the intensity of problem faced by the company. Only promising and capable

junior level managers are selected for this

method.

OFF THE JOB TRAINING METHOD :- Off the job training refers to method of training

given outside the company. The different methods adopted here are

1. Classroom method :-The classroom method is used when a group of managers have to be trained

in theoretical aspects. The training involves using lectures, audio visuals, casestudy, role play method, group discussions etc. The method is interactive and

provides very good results.

2. Simulation :-Simulation involves creating an atmosphere which is very similar to the

original work environment. The method helps to train managers in handlingstress, taking immediate decisions, handling pressure on the jobs etc. An

actual feel of the real job environment is given here.

3. Business games :-This method involves providing a market situation to the trainee manager andasking him to provide solutions. If there are many people to be trained they

can be divided into groups and each group becomes a separate team and playagainst each other.

4. Committee :-A committee refers to a group of people who are officially appointed to look

into a problem and provide solutions. Trainee managers are put in the

committee to identify and study a problem in the organization and to providesuggestions on how they will solve the problem and to explain what they

learnt from it.

5. Conference :-Conferences are conducted by various companies to have elaborate

discussions on specific topics. The company which organizes the conference

invites trainee managers from different companies and calls for experts indifferent fields to give presentations or lectures. The trainee managers can asktheir doubts to these experts and understand how problems can be solved on

the job.

6. Readings :-This method involves encouraging the trainee manager to increase his reading

related to his subject and then asking him to make a presentation on what he

has learnt. Information can be collected by trainee manager from books,magazines and internet etc.

7. In basket training :-


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The method is adopted from the INand OUTbaskets normally found in

the managers cabin. In this method the training is given to the manager tohandle files coming in and to finish his work and take decisions within a

specified time limit. The trainee manager is taught how to prioritize his work,

the activities which are important for his job and how to take decisions withinlimited time.

TRAINING PROCEDURE/PROCESS OF TRAINING :-Training is defined by Wayne Cascio as training consists of planed programs undertaken to

improve employee knowledge, skills, attitude, and social behavior so that the performance of the

organization improves considerably.

Every company has a specific training procedure, depending upon its requirements. Ageneral training procedure is explained below along with diagram

PROCESS/PROCEDURE OF TRAINING

Determining training need of employee

Select a target group for training

Preparing trainers

Developing training packages

Presentation

Performance

Follow up

1. Determining training needs of employee :-

In the very 1ststep of training procedure, the HR department, identifies the

number of people requiring training, specific area in which they need training,

the age group of employee, the level in organization etc. in some cases the

employee may be totally new to the organization. Here the general

introduction training is required. Some employees may have problems in

specific areas; here the training must be specific. This entire information iscollected by HR department.

2. Selecting target group :-Based on information collected in step 1 the HR department divides employee

into groups based on the following.

i. Age group of the employee to be trainedii The area in which training is required

iii Level of the employee in the organization

iv The intensity of training etc.

3. Preparing trainers :-


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Once the employees have been divided into groups, the HR department

arranges for trainers. Trainers can be in house trainers or specialized trainersfrom outside. The trainers are given details by HR department, like number of

people in the group, their age, their level in organization, the result desired at

the end of training, the area of training, the number of days of training, thetraining budget, facilities available etc.

4. Preparing training packages :-

Based on the information provided by trainers, he prepares entire trainingschedule i.e. number of days, number of sessions for each day, topics to be

handled each day, depth of which the subject should be covered, the

methodology for each session, the tests to be given foe each session,

handout/printed material to be given in each session etc.

5. Presentation :-On the first day of training program the trainer introduces himself and

specifies the need and objective of the program. This is done so that

employees get the right idea about the objectives. He then actually starts theprogram. The performance of each employee is tracked by the trained and

necessary feedback is provided.

6. Performance :-At the end of training program the participants reports back to their office or

branches. They prepare report on the entire training program and what they

have learned. They the start using whatever they have learnt during theirtraining. Their progress and performance is constantly tracked and suitable

incentives are given if the participant is able to use whatever he has learnt in

training.

7. Follow up :-

Based on the employee performance, after training, the HR department is ableto identify what is exactly wrong with training program and suitable

correction is made in the training programmes in the future.

EVALUATION OF TRAINI NG PROGRAM


improve employee knowledge, skills, attitude, and social behavior so that the performance of the

organization improves considerably.

Effectiveness of training programs are constantly evaluated by the company to find if the money,they have invested has been spent properly or not. Training programs can be evaluated by asking

following questions.a) Has change occurred after training?b) Is the change due to training?c) Is the change positive or negative?d) Will the change continue with every training program?

A training program should give following resulting changes.

1. Reaction :-

Reaction refers to attitude of employee about the training, whether theemployee considers training to be positive or negative one. If reactions are


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positive then people have accepted the program and changes will be possible.

2. Learning :-Another method of judging effectiveness is to identify levels of learning i.e.

how much the people have learnt during the training. This can be found out by

trainers mark sheet, the report submitted by the employee, and actualperformance.

3. Behavior :-

The HR department needs to understand behavior of the employees, tounderstand the effectiveness of training. The behavioral change can be seen in

how the person interacts with juniors, peer groups and seniors. They mark

change in behavior and inform the HR department of the success of training

program.

4. Result :-Results provided by employee in monetary terms also determines

effectiveness of training program i.e. employee success calculated in monetary

terms on handling the project after training, the group performance before andafter training etc.

Effective training programs must give the following resultsi. Increase in efficiency of worker

ii. Reduction in labour turnoveriii. Increase in disciplineiv. Reduction in wastage and therefore cost of productionv. Proper care of tools and equipments

vi. Employee development in career termsvii. Overall efficiency in the company

ADVANTAGES OF TRAINING PROGRAMME/ TRAINING

A training programme has the following advantages. They are

ADVANTAGES OF TRAINING

TO THE COMPANY TO THE EMPLOYEE

I ADVANTAGES TO THE COMPANY:

1. Increased efficiency of employees:

An effective training programme can make the employees of the company work

in an effective manner. With training people gain confidence and this confidenceis seen in the output and results.

2. Reduced supervision:An employee needs to be supervised when he works. When the employee has got

sufficient training the amount of supervision required is less as mistakes are less.

This reduces the workload of the supervisor.

3. Less amount of wastageThe amount of wastage by an employee is reduced a lot due to training and

therefore if we take an account of the amount of wastage we find that thecompany has saved a lot of money.


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4. Reduced turnover:

Proper training improves chances of obtaining promotions and employees arehappy because they have better opportunities Due to this their chances of leaving

their current job reduces greatly thereby reducing labour turnover in the

company.5. Helps new employees in the organization:

Training always benefits employees whether old or new. In case of new

employees, training helps them a lot . This is because new employees may not beaware of the functioning of the organization and training helps them to gain

knowledge and insight into the working of the company.

6. Better labourmanagement relations:

Labourmanagement relations are very essential for any organization. Whencompanies introduce training programmes and prepare employees for future jobs

and promotions they send out a message to the unions that they are interested in

employee welfare. Due to this the unions also adopt a positive attitude and

labourmanagement relations improve.

II ADVANTAGES TO THE EMPLOYEE:

1. Self-confidence:Training leads to increase in employee self-confidence. The person is able to

adjust to his work environment and doesntfeel humiliated in front of his

seniors. This confidence leads to chances of better efforts in the future from the

employees.

2. Increased motivation levels:

Training brings positive attitude among employees and increases the motivationlevels of the employees in the organization, thereby improving the results of the

organization

3. High rewards:An effective training programme helps an employee to take the benefit of the

rewards systems and incentives available in the company . Thus the employee is

able to get these rewards , which in turn increases his motivation levels.

4.

Group efforts:An effective training programme not only teaches an employee how to do his

work but also trains him to work as a part of the group. Thus training

programmes improve group efforts

5. Promotion:Effective training programmes increase performance and increase the chances of

obtaining promotions. Many employees even opt for certain programmes so that

they can help the employee to improve his chances of promotions and obtaininghigher positions in the organization.


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PERFORMANCE APPRAISAL

Performance appraisal is the process of obtaining, analyzing and recording information about the relaworth of an employee. The focus of the performance appraisal is measuring and improving the acperformance of the employee and also the future potential of the employee. Its aim is to measure wha

employee does.

According to Flippo, a prominent personality in the field of Human resources, performance appraisal is

systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to

present job and his potential for a better job." Performance appraisal is a systematic way of reviewing

assessing the performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyzeachievements and evaluate his contribution towards the achievements of the overall organizational goals

By focusing the attention on performance, performance appraisal goes to the heart of personnel managem

and reflects the managements interest in the progress of the employees.

OBJECTIVES OF Performance appraisal:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior subordinates managementemployees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be performed by employees.

To judge the effectiveness of the other human resource functions of the organization suchrecruitment, selection, training and development.

To reduce the grievances of the employees.

Process of Performance Appraisal

ESTABLISHING PERFORMANCE STANDARDS: The first step in the process ofperformance appraisal is the setting up of the standards which will be used to as the base tocompare 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


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Notes on PPM Unit 3

Ram SinghLecturer

IET, Lucknow

contribution to the organizational goals and objectives. The standards set should be clear,

easily understandable and in measurable terms. In case the performance of the employeecannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS :Once set, it is the responsibility of the managemencommunicate the standards to all the employees of the organization. The employees shouldinformed and the standards should be clearly explained to the. This will help them to underst

their roles and to know what exactly is expected from them. The standards should also

communicated to the appraisers or the evaluators and if required, the standards can also be modiat this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE: The most difficult part of the Performaappraisal process is measuring the actual performance of the employees that is the work done by

employees during the specified period of time. It is a continuous process which involves monitothe performance throughout the year. This stage requires the careful selection of the appropr

techniques of measurement, taking care that personal bias does not affect the outcome of the proand providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE: The actual performais compared with the desired or the standard performance. The comparison tells the deviations in

performance of the employees from the standards set. The result can show the actual performabeing more than the desired performance or, the actual performance being less than the des

performance depicting a negative deviation in the organizational performance. It includes recall

evaluating and analysis of data related to the employees performance.

DISCUSSING RESULTS: The result of the appraisal is communicated and discussed with

employees on one-to-one basis. The focus of this discussion is on communication and listening. results, the problems and the possible solutions are discussed with the aim of problem solving reaching consensus. The feedback should be given with a positive attitude as this can have an ef

on the employees future performance. The purpose of the meeting should be to solve the probl

faced and motivate the employees to perform better.

DECISION MAKING: The last step of the process is to take decisions which can be taken eitheimprove the performance of the employees, take the required corrective actions, or the related

decisions like rewards, promotions, demotions, transfers etc.

Pre-requisites for Effective & Successful Performance Appraisa

The essentials of an effective performance system are as follows:

Documentation means continuous noting and documenting the performance. It also helpsevaluators to give a proof and the basis of their ratings.

Standards / Goals the standards set should be clear, easy to understand, achievable, motivattime bound and measurable.


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Notes on PPM Unit 3

Ram SinghLecturer

IET, Lucknow

Practical and simple format - The appraisal format should be simple, clear, fair and objective. Land complicated formats are time consuming, difficult to understand, and do not elicit much usinformation.

Evaluation techniqueAn appropriate evaluation technique should be selected; the appraisal sys

should be performance based and uniform. The criteria for evaluation should be based on observand measurable characteristics of the behavior of the employee.

Communication Communication is an indispensable part of the Performance appraisal procThe desired behavior or the expected results should be communicated to the employees as wel

the evaluators. Communication also plays an important role in the review or feedback meeting. O

communication system motivates the employees to actively participate in the appraisal process.

Feedback The purpose of the feedback should be developmental rather than judgmental.maintain its utility, timely feedback should be provided to the employees and the manner of giv

feedback should be such that it should have a motivating effect on the employees fu

performance.

Personal Bias Interpersonal relationships can influence the evaluation and the decisions in

performance appraisal process. Therefore, the evaluators should be trained to carry out the proceof appraisals without personal bias and effectively.

Challenges Of Performance Appraisal

In order to make a performance appraisal system effective and successful, an organization comes ac

various challenges and problems. The main challenges involved in the performance appraisal process are

Determining the evaluation criteria: Identification of the appraisal criteria is one of the bigproblems faced by the top management. The performance data to be considered for evalua

should be carefully selected. For the purpose of evaluation, the criteria selected should bequantifiable or measurable terms

Create a rating instrument: The purpose of the Performance appraisal process is to judge performance of the employees rather than the employee. The focus of the system should be on

development of the employees of the organization.

Lack of competence: Top management should choose the raters or the evaluators carefully. Tshould have the required expertise and the knowledge to decide the criteria accurately. They sho

have the experience and the necessary training to carry out the appraisal process objectively.

Errors in rating and evaluation: Many errors based on the personal bias like stereotyping, heffect (i.e. one trait influencing the evaluators rating for all other traits) etc. may creep inappraisal process. Therefore the rater should exercise objectivity and fairness in evaluating

rating the performance of the employees

Resistance: The appraisal process may face resistance from the employees and the trade unionsthe fear of negative ratings. Therefore, the employees should be communicated and cle

explained the purpose as well the process of appraisal. The standards should be cle


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Notes on PPM Unit 3

Ram SinghLecturer

IET, Lucknow

communicated and every employee should be made aware that what exactly is expected f

him/her.


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Notes on PPM Unit 3

Ram SinghLecturer

IET, Lucknow

Purpose of Performance Appraisal

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal

potential appraisal also form a part of the performance appraisal processes.Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed by employees.

To judge the effectiveness of the other human resource functions of the organization suchrecruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior subordinates managementemployees.

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions80%

Training and development needs71%

Identifying the gaps in desired and actual performance and its cause 76%

Deciding future goals and course of action42%

Promotions, demotions and transfers49% Other purposes 6% (including job analysis and providing superior support, assistance

counseling).

The Balanced ScorecardTo evaluate the organizational and employee performance in Performance appraisal managem

processes, the conventional approach measures the perfo

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