HUMAN RESOURCE

MANAGEMENT
 Unit I

What is Human Resource

Management?
 HRM
Human resource management (HRM) is the strategic and
coherent approach to the management of an
organization's most valued assets - the people working
there who individually and collectively contribute to the
achievement of the objectives of the business. The terms
"human resource management" and "human resources"
(HR) have largely replaced the term "personnel
management" as a description of the processes involved
in managing people in organizations. In simple sense,
HRM means employing people, developing their
resources, utilizing, maintaining and compensating their
services in tune with the job and organizational
requirement.
 HRM
Features
Its features include:
• Organizational management
• Personnel administration
• Manpower management
• Industrial management
 HRM
• But these traditional expressions are becoming less
common for the theoretical discipline. Sometimes even
employee and industrial relations are confusingly listed
as synonyms, although these normally refer to the
relationship between management and workers and the
behavior of workers in companies.
• The theoretical discipline is based primarily on the
assumption that employees are individuals with varying
goals and needs, and as such should not be thought of
as basic business resources, such as trucks and filing
cabinets. The field takes a positive view of workers,
assuming that virtually all wish to contribute to the
enterprise productively, and that the main obstacles to
their endeavors are lack of knowledge, insufficient
training, and failures of process.
 HRM
• HRM is seen by practitioners in the field as a
more innovative view of workplace management
than the traditional approach. Its techniques
force the managers of an enterprise to express
their goals with specificity so that they can be
understood and undertaken by the workforce,
and to provide the resources needed for them to
successfully accomplish their assignments. As
such, HRM techniques, when properly practiced,
are expressive of the goals and operating
practices of the overall enterprise. HRM is also
seen by many to have a key role in risk
reduction within organizations.
 HRM (Definitions)
• Synonyms such as personnel management are often used
in a more restricted sense to describe activities that are
necessary in the recruiting of a workforce, providing its
members with payroll and benefits, and administrating
their work-life needs. So if we move to actual definitions,
• Torrington and Hall (1987) define personnel management
as being:
“a series of activities which: first enable working people
and their employing organisations to agree about the
objectives and nature of their working relationship and,
secondly, ensures that the agreement is fulfilled“.
• While Miller (1987) suggests that HRM relates to:
".......those decisions and actions which concern the
management of employees at all levels in the business
and which are related to the implementation of strategies
directed towards creating and sustaining competitive
advantage“.
 HRM (Academic Theory)
Academic theory
• The goal of human resource management is to help an
organization to meet strategic goals by attracting, and
maintaining employees and also to manage them
effectively. The key word is "fit", i.e. a HRM approach
seeks to ensure a fit between the management of an
organization's employees, and the overall strategic
direction of the company (Miller, 1989).
• The basic premise of the academic theory of HRM is that
humans are not machines, therefore we need to have an
interdisciplinary examination of people in the workplace.
Fields such as psychology, industrial engineering,
industrial, Legal/Paralegal Studies and organizational
psychology, industrial relations, sociology, and critical
theories: postmodernism, post-structuralism play a major
role. Many colleges and universities offer bachelor and
master degrees in Human Resources Management.
 HRM (Academic Theory)
One widely used scheme to describe the role of HRM,
developed by Dave Ulrich defines 4 fields for the HRM
function:
• Strategic business partner
• Change management
• Employee champion
• Administration
However, many HR functions these days struggle to get
beyond the roles of administration and employee
champion, and are seen rather as reactive than
strategically proactive partners for the top management.
In addition, HR organizations also have the difficulty in
proving how their activities and processes add value to
the company. Only in the recent years HR scholars and
HR professionals are focusing to develop models that
can measure if HR adds value.
 HRM (Business Practice)
Business practice
Human resources management comprises several
processes. Together they are supposed to achieve the
above mentioned goal. These processes can be
performed in an HR department, but some tasks can
also be outsourced or performed by line-managers or
other departments. When effectively integrated they
provide significant economic benefit to the company.
• Workforce planning
• Recruitment (sometimes separated into attraction and
selection)
• Induction, Orientation and Onboarding
• Skills management
• Training and development
• Personnel administration
• Compensation in wage or salary
• Time management
• Travel management (sometimes assigned to accounting
rather than HRM)
• Payroll (sometimes assigned to accounting rather than
HRM)
• Employee benefits administration
• Personnel cost planning
• Performance appraisal
 HRM-Environment
Factors
EXTERNAL
– POLITICAL
– LEGAL
– BUSINESS ENVIRONMENT –
• GLOBALISATION
• MERGERS & ACQUISITIONS
• DOWNSIZING /RIGHTSIZING
– NATIONAL ECONOMY
– DEMOGRAPHIC
• Diverse workforce
• Knowledge workforce / intellectual capital
• More Women in workforce
• Changing family structure
• Contingent workforce
• TECHNOLOGICAL
– Occupational Shift (manufacturing
….. services)
– managing a virtual workforce
– training & retraining employees to
manage obsolescence.
– providing work life balance
– Need based technology – not
fads
• Internal factors
– Unions
– Strategy, Leadership
– Organisational Culture
– Professional Bodies
 The External Influences
The External Influences
• The HRM activities don't exist in isolation. Rather, they
are highly affected by what is occurring outside the
organization. It is important to recognize environmental
influences because any activity undertaken in each of
the HRM processes is directly, or indirectly, affected by
these external elements. For example, lets say that
when a company downsizes its workforce, does it layoff
workers by seniority? If so, are an inordinate number of
minority employees affected. Although any attempt to
identify specific influences may prove insufficient, one
can categorize them into four general areas - the
dynamic environment, governmental legislation, labor
unions and current management practice.
 The Dynamic Environment of HRM
It's been stated that the only thing that remains constant
during our lifetimes is change (and paying taxes!). We
must, therefore, prepare ourselves for events that have a
significant effect on our lives. HRM is no different. Many
events help shape our field. Some of the more obvious
ones include-
• globalization,
• work-force diversity,
• changing skill requirements,
• corporate downsizing,
• total quality management,
• reengineering work processes,
• decentralized work sites, and
• employee involvement.
 The Dynamic Environment of HRM
• GLOBALIZATION Globalization reflects the
worldwide operations of many businesses today.
One is no longer bound by continents or societal
cultures.
• WORK FORCE DIVERSITY includes the varied
backgrounds of employees that are present in
the companies today. Homogeneity of
employees, and their needs, no longer exist. The
work today is more complex, requiring
employees with sophisticated skills. Without
them, many employees will lack the basic
abilities to successfully perform in tomorrow's
organizations.
 The Dynamic Environment of HRM
• Corporate downsizing, total quality
management, and reengineering all relate to one
another. As the world changed, U.S. companies had to
compete harder to maintain their leading industrial status.
This meant doing things differently. In an effort to become
more productive, organizations downsized to create greater
efficiency by eliminating certain jobs. Of the jobs and work
processes remaining, total quality management (TQM) looks
at ways of improving job effectiveness. By continuously
improving on methods, techniques, processes, and the like,
companies made constant efforts to better what they produce.
But what if what they produce, even if it's better, still doesn't
satisfy the customer? In those cases, reengineering is
necessary. Whereas TQM looks at new and improved ways of
producing goods and services, reengineering looks at starting
the processes over again from scratch. That is, instead of
improving on an existing product, the organization would
analyze what should be done and how they should do it.
Searching for answers would not be constrained by current
business practices.
 The Dynamic Environment of HRM

• Decentralized work sites are quickly becoming part

of many organizations. With the technologies that are
available (personal computers, fax machines, modems,
etc.), work that was once done on the company
premises may now be more cost-effectively handled at
the employee's home. Lastly,
• Employee involvement looks at how employees' work
lives are changing. Involved employees now have more
control over their jobs. Certain activities, like goal setting,
were once the sole responsibility of managers. With
employee involvement, such an action today permits
participation.
Governmental Legislation
• Many employees today wishing to take several
weeks of unpaid leave to be with their newborn
children, and return to their previous job without
any loss of seniority, have an easier time making
the request. Although some employers may see
such an application as negatively affecting the
workflow, government legislation has given
employees the right to take this leave. Laws
supporting this and other employer actions are
important to the HRM process.
 Legal Compliances
• Shops & Establishments Registration &
Compliance
• Registration &Compliance under the Factories
Act
• Registration & Compliance under Provident
Fund Act
• Registration and Compliance under the ESI Act
• Compliance under Minimum Wages Act
• Compliance under the Gratuity Act
• Compliance under the Payment of Bonus Act

21
HRM in a Changing Environment

I. Objectives
A. Competitive advantage.
B. Changing trends.
C. Importance of
measurement.
II. Overview
A. Functions of HRM

B. HRM is about the people

who perform its activities.
 II. Overview cont...
C. Most effective HRM programs

1. Not typical.
2. HR is a major contributor.
 II. Overview cont...

D. Status of HRM is improving.

1. More Professional
2. Bigger budgets
3. Senior management
 III. HRM Trends

A. Trend 1: productivity
B. Trend 2: flexibility
C. Trend 3: international
D. Trend 4: litigation
E. Trend 5: workforce.
 IV. HRM Measurement

A. The value of HRM functions.

B. measurement can reduce cost.
C. which HRM practices work.
 “Management by Measurement”
System
• “Management by measurement” system—
ensuring all functional business units subscribe
to guidelines for sound, strategic measurement
– criteria to measure
• performance (e.g., individual, team, unit)
• quantity, quality, timeliness, cost-effectiveness, effects on
others
• productivity
• customer satisfaction
• absenteeism
• turnover/retention/tenure/intentions to stay/leave
• employee theft
“Management by Measurement”
System
• criteria to measure (continued)
• violence in the workplace
• job stress (e.g., role conflict, ambiguity)
• job satisfaction/motivation/attitudes/commitment
• creativity
• perceived fairness (procedural, interactional)
• error rates
• accidents, health-related variables (worker stress,
injuries)
• organizational citizenship behavior
HRM Functions
 Handling Retainin Recruitment Process
problems g good
staff

Termination of employement
The Human Resource System
 The Changing Face of HR
HR Transaction and Administration functions are being enabled
through leading edge e-HR solutions
Today Future
% Time, Effort,
Cost
Align HR activities and programmes
5% with the strategic direction and 20%
Strategy business needs of the organisation
Strategy
Develop and deliver
Performance 40%
25% programmes that enhance the
Enhancement organisation’s ability to
Performance
attract, develop and retain
superior performers Enhancement

30% Transactions
Handle employees
transactions and Transactions 20%
enquiries
Administration
40% Administration Manage vendors, suppliers, 20%
budgets, and HR systems

Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD

32
HRIS, INTERNET, Enhanced distribution
INTRANETS & of HR policy,
EXTRANETS news, information

Better internal Internet

communication Widespread recruitment
electronic
On-line training systems Multi-site
& development collaborative work
teams, electronically
linked

Maintenance
of HR records Performance appraisal,
including 360O feedback
33
Human Resource Management in
Tourism
• Considered to be the most important aspect of
management

• Attitudes and abilities of staff have a crucial

impact on the visitors experience

• Labour costs are likely to be the largest single

items on the attractions budget
Problems of HRM at visitor attractions
Tourism industry suffers from bad reputation in HRM

• High turnover of staff

• Seasonality of demand
• Poor status of jobs
• Lack of career structures
• Unusually demanding jobs
• lack of management expertise
• Lack of widely recognized qualification
and training schemes
Problems of HRM at visitor attractions cont.

Problems of public sector attractions are often in direct

contrast to the problems mentioned before

• Low turnover of staff

• Inflexible working practices
• Fixed-wage rages
• Standardized recruitment and disciplinary procedures
Benefits for organisation of good HRM
• Improves performance of staff
• Provides a competitive advantage to the organization
• Contented staff provide better service to customers,
encouraging repeat visitation
• Reputation for good staff will lead to increased first-
time visitation
• HRM plays a part in determining the success or
failure of any organisation.
 IITTM
M.B.A.-IISemester (PGDM-tt)

HUMAN RESOURCE
PLANNING
EFFECTIVE

U PRODUCTIVITY
T
I
L
I
Z
A
T GROWTH
I
O
N

OF
ECONOMIC
HUMAN DEVELOPMENT
CAPABILITY
 Human Resource Planning

• Effective planning of HR is essential to

match the requirements of the job with the
individual
• Right resources at the right time to meet
the future organizational needs is critical
• A comprehensive and meticulous HRP
process can ensure sustained growth of an
organization
 Human Resource Planning
• Diversification or expansion, employee promotion
or changes in human resource necessitates
effective HRP
• Organizational plans, goals, and strategies also
needs effective HRP
• Success in business is dependent on being able
to react quickly to opportunities
• Organizations must have accurate, rapid access
to information about both supply of and demand
for HR
Organizational Life-Cycle Stages HR Activities
LIFE-CYCLE TRAINING AND LABOR /
STAGE STAFFING COMPENSATION DEVELOPMENT EMPLOYEE
RELATIONS

Introduction Attract best Meet or exceed Define future skill Set basic
technical and labor market requirements employee-
and begin relations
professional rates to attract philosophy of
establishing
talent needed talent organization
career ladders

Growth Recruit Meet external Mold effective Maintain

adequate market but management labour
numbers and team through peace,
mix of qualified
consider internal
equity effects. management employee
workers. Plan
management Establish formal development motivation &
succession. compensation and morale
Manage rapid structures organizational
internal labour development
market
movements
Organizational Life-Cycle Stages and HR Activities
LIFE-CYCLE TRAINING AND LABOR /
STAGE STAFFING COMPENSATION DEVELOPMENT EMPLOYEE
RELATIONS
Maturity Encourage Control
sufficient turnover
Control Maintain
to minimize layoffs compensati flexibility labour costs
and provide new & maintain
openings. on costs and skills of labour peace.
Encourage mobility an aging Improve
as reorganizations
shift jobs around workforce productivity

Decline Plan and Implement Improve

Implement
implement productivity and
workforce
tighter cost retraining achieve
reductions and control and career flexibility in work
reallocations, consulting rules. Negotiate
downsizing and job security and
outplacement services employment-
may occur during adjustment
this stage policies
 Human Resource Planning
• HRP is both a process and a set of plans
– a process by which management of an
organization determines its future HR
requirements
– a plan to fill the future HR requirements from
internal and external sources
• Assessment of human resource
requirements in advance vis a vis
organizational objectives, production
schedules, and demand fluctuations
 Human Resource Planning
• ‘The process of determining human resource
requirements and the means of meeting those
requirements in order to carry out the integrated
plan of the organization’ – Coleman
• Relates to
– establishing job specifications
– determining the number of personnel
required
– developing the sources of human resource
 Internal vs. External
• System of matching the available
resources, either externally or internally,
with the expected organizational demand
over a period of time
• Internal Resources
– employees who are already in the
organization
• External Resources
– personnel who have to be recruited
from outside
 Objectives of HRP
• Forecasting HR Requirements
– maintain the required quantity & quality of HR
– turnover/attrition rates
• Effective Management of Change
– coping with changes in market conditions, technology,
govt. regulations et al
• Realizing Organizational Goals
– expansion, diversification
• Promoting Employees
– database on skill repertoire
• Effective Utilization of HR
– surplus/unutilized employees vis a vis downsizing
 Emergence of HRP
• Early HRP was top down, short range
• 1970s: “manpower planning”
• 1990s: aligning HR strategy with
– corporate strategy
– attention to individual career
planning
 Effective HRP
• An effective HRP
– closes the gap between the current
situation and a desired situation in
the context of an organization’s
strategy
– helps cope with change and achieve
organizational goals
 HR Planning Levels
• HRP is carried out at different
organizational levels to meet HR
requirements at those levels
• Flow of communication in HRP is both
ways
– Top to bottom
– Bottom to top
• The levels are
– Corporate level planning
– Intermediate level planning
– Operational level planning
 HR Planning Levels
• Corporate-level Planning
– Culture and mission of the organization
– Macro-level: changes in market conditions, technology,
strategic plan, etc
– Identification of broad policy issues; employment, welfare,
development policies
• Intermediate-level Planning
– SBU level, based on corporate-level HR Plan
– Determining recruitment, retaining, laying off
• Operational-level Planning
– Operations level plan
– Training & development, recruitment etc
• Planning Short-term Activities
– Management of day-to-day activities
– Ensure success or failure of corporate plans
– Grievance handling, etc
 Environmental Scanning
impact of strategy/goals on diff. units H
R
Involving Line Managers P
determining HR needs of departments

P
Forecasting R
quantity & quality of personnel needed
O
C
Analysis of Supply
matching current HR supply & reqmnt E
S
Plan of Action S
recruitment, selection, training, et al
 Human Assess trends in
• External labour markets
Resource • Current employees
• Future organizational plans
Planning • General economic trends

Predict demand

Forecast internal supply Forecast external supply

Compare future demand

and internal supply

Plan for dealing with predict-

ed shortfalls or overstaffing
 Situation Analysis
• Interaction of HRM and strategic planning
• The strategic plan must adapt to environmental
circumstances
• HRM is one of the mechanisms of adaptation
process
• Example: rapid technological changes can force
an organization to quickly identify and hire
employees with new skills
• Without HR plan to support the recruitment &
selection functions it would be impossible to
move fast to stay competitive
 Forecasting
• Estimating not only ‘how many’ but also
‘what kinds’ of employees will be needed
• Yields advance estimates or calculations
of the organization’s staffing
requirements
• Apart from quantitative tools, a great
deal of human judgement is involved
• Incredibly difficult tasks, especially in
rapidly changing environment
 Forecasting Techniques
• Qualitative Techniques
– Expert estimate
– Nominal Group Technique (NGT)
– Delphi Technique
• Quantitative Techniques
– Regression Analysis
– Productivity Ratios
– Personnel Ratios
– Time Series Analysis
 The Nominal Group Technique
A small group of 4-5 people gathers around a table. Leader
identifies judgment issue and gives participants procedural
instructions

Participants write down all ideas that occur to them, keeping

their lists private at this point. Creativity is encouraged during
this phase

Leader asks each participant to present ideas and writes them

on a blackboard or flipchart, continuing until all ideas have been
recorded

Participants discuss each other’s ideas, clarifying, expanding,

and evaluating them as a group

Participants rank ideas privately in their own personal order and

preference

The idea that ranks highest among the participants is adopted

as the group’s judgment
 The Delphi Technique
Leader identifies judgment issues and develops questionnaire

Prospective participants are identified and asked to cooperate

Leaders send questionnaire to willing participants, who record

their judgments and recommendations and return the
questionnaire

Leaders compiles summaries and reproduces participants’

responses

Leader sends the compiled list of judgment to all participants

Participants comment on each other’s ideas and propose a final

judgment

Leader looks
for consensus

Leader accepts consensus judgment as group’s choice

 Statistical Techniques
Name Description
Regression analysis Past levels of various work load indicators, such as sales,
production levels, are examined for statistical relationships
with staffing levels. Where sufficiently strong relationships
are found, a regression (or multiple regression) model is
derived. Forecasted levels of the retained indicator(s) are
entered into the resulting model and used to calculate the
associated level of human resource requirements.

Historical data are used to examine past levels of a

productivity index (P):
Productivity ratios
P = Work load / Number of People

Where constant, or systematic, relationships are found,

human resource requirements can be computed by diving
predicted work loads by P.
 Statistical Techniques
Name Description
Personnel ratios Past personnel data are examined to determine historical
relationships among the employees in various jobs or job
categories. Regression analysis or productivity ratios are
then used to project either total or key-group human
resource requirements, and personnel ratios are used to
allocated total requirements to various job categories or to
estimate for non-key groups.

Time series analysis Past staffing levels (instead of work load indicators) are
used to project future human resource requirements. Past
staffing levels are examined to isolate and cyclical
variation, long-tem terms, and random movement. Long-
term trends are then extrapolated or projected using a
moving average, exponential smoothing, or regression
technique.
 Analysing Current Supply
• “How many and what kinds of employees do I
currently have in terms of the skills and training
necessary for the future?”
• Are resources available – internally or externally –
to fill those needs?
• Internal
– skills inventory
– succession planning
– promotability
• External
– availability of qualified labor; surplus? shortage?
 Analysing Current Supply
• The Skills Inventory: tool to assess current
supply of employees in terms of
– skills
– abilities
– experiences
– training
• If the current inventory exceeds the future
requirements and natural attrition cannot
bring down the resources to match the future
requirements?
Employee Replacement Chart for
Succession Planning
 Managing Employee Surpluses

Source: Compliments of Dan Ward, GTE Corporation

 Managing Employee Shortages

Source: Compliments of Dan Ward, GTE Corporation

 HRIS
• Human Resource Information System is
more than just a computerized skills
inventory
• An HRIS is an integrated approach to
– analysing
– acquiring
– storing
– controlling the flow of information
throughout an organization
 HRIS
• Highly developed HRIS systems can
increase efficiency and response time of
HRM activities
• The system might contain a programme
for tracking applicants, a skills inventory, a
career planning programme, employee
service programmes
• One of the most common uses of an
HRIS is in recruitment and tracking of
applicants
 IITTM
M.B.A.-II Semester (PGDM-tt)

Unit II

Job analysis
 Job analysis
An assessment of the kinds of skills,
knowledge, and abilities needed to
successfully perform each job in an
organization
 Job Analysis
• Job analysis is the systematic collection
and recording of information concerning:
– the purpose of a job,
– its major duties,
– the conditions under which it is performed,
– the contact with others that performance of
the job requires, and
– the knowledge, skills, and abilities needed for
performing the job effectively.

71
JOB ANALYSIS OUTCOMES

– Job description

– Job specification

– Job evaluation
 Job Analysis Components
• Job description
– A written statement of what a job holder does, how it
is done, and why it is done
• Tasks, duties and responsibilities that the job entails
• Job specification
– A statement of the minimum acceptable qualifications
that an incumbent must possess to perform a given
job successfully
• Knowledge, skills, and abilities required of the job holder
 JOB DESCRIPTION
• Focus on the job
• Written statement
– What is done
– How
– Why
• Includes
– Job content
– Environment
– Conditions of
employment
TYPICAL JOB DESCRIPTION FORMATS

• Job title
• Duties
• Distinguishing
characteristics
• Authority
• Responsibilities
 JOB DESCRIPTIONS ARE USEFUL FOR

• Recruiters
• New hires
• Performance
appraisals
• Identifying essential
job functions
 JOB SPECIFICATION
• Focus on the person
who does the job
• Identifies minimum
incumbent
qualifications
• Knowledge, skills,
education,
experience,
certification, abilities
• Personality
 JOB EVALUATION

• Establish job
comparability
– Compensation
– Relative value
• Competitive analysis
 IT TAKES GOOD JOB ANALYSIS TO
PERFORM
• THESE HR
FUNCTIONS WELL:
• Recruiting
• Selection
• Strategic human
resource planning
• Employee training
• AND….
MORE HR FUNCTIONS NEED JOB
ANALYSIS
• Employee
development
• Career development
• Performance
appraisal
• Compensation
• Safety and health
• Labor relations
The Multifaceted Nature of the Job Analysis
• A job analysis may be based on information
obtained through direct observation, interviews,
diaries or questionnaires.
• A job description is a statement of the duties,
working conditions, and other significant
requirements associated with a particular job.
• A job specification is a statement of the skills,
abilities, education and previous work
experience that are required to perform a
particular job.

82
 Methods of Job Analysis
• For existing jobs, interviews with
employees
• Interviews with supervisors
• Observation
• Combination, interviews & observation
• Structured questionnaires
• Employee journals/logbooks

83
 Job Analysis
• Unorganized data has little use.
• Only concerned with facts.
• Concerned only with the job, not the
worker.
• Not “job classification”.
• Required to determine job qualifications?
• No, but planning is the key to success.
 Tools used
• Books and Literature
– Valid information on current job analysis and
studies.
– Job analysis that are being implemented by
other successful companies.
– Past and present failures and successes.
 Tools cont..
• Flow and Organizational Charts
– Very helpful for showing past and current
information.
– Show trends and similarities.
 IITTM
M.B.A.-IISemester (PGDM-tt)

Unit II

Recruitment and Selection

 Recruitment And Selection
• Recruitment
– The process of locating, identifying, and
attracting capable applicants
• Selection process
– The process of screening job applicants to
ensure that the most appropriate candidates
are hired
 Recruitment and Selection
We have specific objectives in recruiting and
selecting:
– Identifying the right people.
– Reducing the range of differences
in performance from least
effective to most effective
workforce.
– Keeping turnover to a minimum.
 Recruitment and Selection
How to achieve objectives:
• There is no magic answer.
• Start with a good solid job description.
• Do customer analysis.
• Analyze competitors’ workforce.
• Analyze our workforce.
• Take info from these steps and compile
a profile on type of person we want.
Recruitment and Selection
Developing a pool of applicants:
Job must be sufficiently attractive.
 Then we go to many sources to
recruit such as:
– College placement services.
– Trade media advertising.
– Newspaper advertising.
– Employment services.
Recruitment and Selection
• Screening and final selection:
– Comparison with our preferred
employee profile.
– Interviews to assess.
– Impressions candidate makes.
– Interest in job.
– Personal characteristics.
Strategic
Recruiting
Stages
Typical Division of HR
Responsibilities
Traditional Recruiting Sources
• Internal searches
• Advertisements
• Employee referrals
• Public employment agencies
• Private employment agencies
• Campus placement
• Temporary help services
• Employee leasing and
independent contractors
Organizational Recruiting
Activities
Recruiting
Recruiting
Image
Image

Recruiting
Recruiting Effective
Effective
Presence
Presence Recruiting
Recruiting

Training
Trainingof
of
Recruiters
Recruiters
 Strategic Recruiting Decisions
Organizational-
Organizational-
Based
Basedvs.
vs.
Outsourcing
Outsourcing

Recruiting
Recruiting
Source
SourceChoices:
Choices:
Strategic
Strategic Regular
Regularvs.
vs.
Internal
Internalvs.
vs. Recruiting
Recruiting Flexible
FlexibleStaffing
Staffing
External
External

Recruiting
Recruitingand
and
EEO/Diversity
EEO/Diversity
Considerations
Considerations
EEO and Diversity Considerations
 Advantages and Disadvantages of
Internal and External Recruiting Sources
Internal Recruiting Methods
 Internet Recruiting Methods

Job
JobBoards
Boards

Internet
Internet
Professional/
Professional/ Recruiting
Recruiting
Career
CareerWeb
WebSites
Sites Methods
Methods

Employer
EmployerWeb
WebSites
Sites
 Internet Recruiting
• Advantages • Disadvantages
– Recruiting cost – More unqualified
savings applicants
– Recruiting time – Additional work for HR
savings staff members
– Expanded pool of – Many applicants are
applicants not seriously seeking
– Morale building for employment
current employees – Access limited or
unavailable to some
applicants
 External Recruiting
College and High Schools and
University Technical Schools
Recruiting

Media Sources External

Labor
and Job Fairs Recruiting Unions
Sources

Competitive Employment Agencies

Sources and Search Firms
What to Include in an Effective
Recruiting Ad
 Evaluating Recruiting
Evaluating
EvaluatingRecruiting
Recruiting
Efforts
Efforts

Evaluating
Evaluating Evaluating
Evaluating Evaluating
Evaluating
Recruiting
Recruiting Time
Time Recruiting
Recruiting
Costs
Costsand
and Required
Requiredtoto Quality
Qualityand
and
Benefits Fill
Benefits FillOpenings
Openings Quantity
Quantity
 Recruiting Evaluation
• General Areas for Evaluating Recruiting
– Quantity of applicants
– EEO goals met
– Quality of applicants
• Yield ratios
– A comparison of the number of applicants at one
stage of the recruiting process to the number at the
next stage.
• Selection rate
– The percentage hired from a given group of
candidates
Recruiting Evaluation Pyramid
 Selection and Placement
• Selection
– The process of choosing individuals who have
needed qualities to fill jobs in an organization.
– Organizations need qualified employees to
succeed
• “Good training will not make up for bad selection.”
• “Hire hard, manage easy.”
 HR’s Role in Selection and
Placement
• Reasons for centralizing selection
– Easier to have applicants in one place.
– Contact with outside applicants is easier.
– Managers can concentrate on operating
responsibilities rather than the selection
process.
– Selection costs are lower with no duplicated
efforts.
 Selection Methods
• Yield ratios
– A comparison of the number of applicants at one
stage of the recruiting process to the number at the
next stage
• Selection rate
– Percentage hired from a given group of candidates
• Acceptance Rate
– Percentage of rejected job offers
• Success Base Rate
– Comparing percentage rate of past applicants who
were good employees to that of current employees.
 Selection Terms
• Reliability
– The degree to which a selection device measures the
same thing consistently (stability)
• Example: an individual consistently achieves nearly identical
scores on the same exam.
• Validity
– The proven relationship between a selection device
and some relevant criterion (a measure of job
success)
• Example: superior job performance and high employment test
scores
 Selection Devices
• Written tests
– Intelligence, aptitude, ability, and interest test batteries
• Performance-simulation tests
– Selection devices that are based on actual job behaviors;
work sampling and assessment centers
• Interviews
– Effective if conducted correctly
• Realistic job preview (RJP)
– Providing positive and negative information about the job and
the company during the job interview
 The case of Protection Royale 1
• The focus is on the Financial Consultancy Division of this insurance company
• There had been very low turnover among the sales consultants whose job had
been to market the company’s insurance products to insurance brokers.
• Recruitment was by replacement:
– advertise in the trade press
– use specialist recruitment agencies
– recommendations from existing staff
– shortlist from applications
– interviews, roles plays, psychometric testing
– references
• But the job became harder as products diversified and become more complex

113
 Protection Royale…... 2

• Customers lost confidence, the company lost its

position in the marketplace
• There was a big shake-up
• The company recognised the need to have a more
focused product range and high-performing staff
who could persuade brokers that these were worth
selling on to clients.
• A new person specification emerged:
– excellent product knowledge
– influential and persuasive
– negotiation skill
114
 Protection Royale ... 3

• Furthermore, legislation introduced in 1994

required financial sales practitioners to hold
various qualifications
• Therefore there was a big reduction in
eligible people within the external labour
market.
• Existing staff were deemed either ‘suitable’,
‘unsuitable’ or ‘possible’; many left
• Line managers tried to head-hunt
replacements, but failed.
• A crisis became apparent
115
 Protection Royale ... 4

• ‘Recruitment champions’ were appointed

• Line managers and HR specialists were given
performance indicators relating to recruitment
objectives
• A new search for direct recruits and for
trainees.
• A matrix of selection methods (e.g.
Application form, testing of job knowledge/
skills/attitudes, psychometric testing,
interviews, simulations, presentations,
references) and competencies. 116
 Protection Royale... 5

• National advertising
• 7 day ‘phone-in’ interviews, followed by screening
interviews
• Assessment centre based selection
• Appointment of an induction manager
• Thorough procedural knowledge training for all
those involved in the recruitment and selection
process.

117
 Recruitment & Selection flowing down
from Corporate Strategy
• Here the objective of recruitment & section would be
to recruit people who will enhance the org.’s capacity
to deliver its corporate strategy.
• E.g. for an INNOVATION corp. strategy, the company
would seek to recruit people with:
– highly innovative behaviour
– preference/ability for co-operative behaviour
– relatively high risk taking
– tolerant of uncertainty
– moderate concern for quality of output
– balanced orientation toward process and results
– longer-term focus
• For a QUALITY ENHANCEMENT or COST
REDUCTION corp. strategies, the patterns would be
different 118
 Recruitment & Selection driving
Corporate Strategy
• There is a business case for building more
DIVERSITY into organisations
– enhances creative capability
– greater flexibility in global markets
– more widely equipped to face unpredictable
challenges

119
Recruitment & Selection Flowing down
from Organisation Structure
Behaviours • Mgt competencies required in
Organic organisations
required in
• info search
managers in
• concept formation
Organic • conceptual flexibility
Organisations: • interpersonal search
• networking • managing interaction
• team building • developmental orientation
• self confidence
• information retrieval
• Proactiveness
• innovative problem • achievement orientation
solving (These may be needed by non-
managers too) 120
 Recruitment & Selection driving
Org. Structure
e.g. Recruiting people in order to help
reconfigure the organisation as delayered and
TEAM-BASED rather than tall.
• Therefore look for people:
• who are dependable
• Make recruitment a
• have interpersonal skills two-way process
• are self-motivated • Involve existing team
• have integrity members in the final
• have leadership potential selection
• are assertive
• tolerate ambiguity
• are able to cope with stress 121
 IITTM
M.B.A.-IISemester (PGDM-tt)

Unit III

Training and Development

 The Workplace Skills Strategy
 Human capital is increasingly regarded
as one of the major drivers of
productivity, economic growth and
competitive advantage. As a demand-driven
 Recognizing the importance of human approach to human resource
capital, the training manpower sets and skills development, the
out to generate: Training will build and
strengthen relationships with
• A skilled, adaptable, motivated and
resilient workforce
and among workplace
partners and better engage
• A flexible, efficient labour market employers, unions to
respond to the challenges of
• A responsive strategy to meet employers workplace skills
needs for skilled workers
development.
• A learned employee can retain customers
and increase business & market share
thro’ proper behavior and good public
relations
 An organization is only as good as it’s
employees.
• In order for an organization to produce professional
career minded employees an investment has to be
made.
 What type of investment must an employer
offer employees to gain this?
• An investment in training and education is a sure payoff.
 Importance of Training
Managers: Importance to overall business strategy
Labour leaders: Importance to collective bargaining
issues
50%
45% 44%

40% 37%
35%
29% 30%
30%
25% managers
25% 22%
labour
20%
15%
10% 9%
5%
5%
0%
not/slightly important important very important crucial
 Examples of Training Investments
 Industry and government in the United States spend
approximately $90 billion each year on employee training and
education.
 Average Japanese companies spends about 6% of budget on
training.
 Study of major automobile manufactures found U. S
automakers spend about 40 hours training new employees
compared to 300 hours for Japanese automakers.
 Motorola’s CEO required all divisions to spend at least 2% of
budget on training. Over next 7 years, profits increased 47%
and it was estimated that each $1.00 in training yielded $30.00
in return.
TRAINING ACTIVITIES SHOULD BE
ALIGNED WITH OVERALL
OBJECTIVE OF THE
ORGANISATION,
WITH A MEANINGFUL EMPHASIS ON
VALUE ADDITION TO OUR
HUMAN RESOURCES.
 Factors to consider
• Training to benefit organisation
• Training to benefit employees
• Training to benefit the industry
• Provide a good return on investment?
 Investment

• To invest properly, the employer must provide training as

one of the needed tools for employees to get the job
done.
 Why Training?

• The sharing of information through training is our most

valuable tool to develop our most valuable asset…our
employees.
Once employees have proper “tools” in their
toolbox
• They will come to work on a daily basis, with enthusiasm
and the positive attitude to give a full days work for a full
days pay.
TRAININGS SHOULD AIM AT
• EMPOWERING THE EMPLOYEES
• INCREASING PRODUCTIVITY
• MAKING THE PROCESSES MORE
EFFICENT AND EFFECTIVE
so as to
ENSURE ULTIMATE
CUSTOMER SATISFACTION
IMPROVE THE OVERALL
PERFORMANCE OF THE ORGANISATION.
 Importance of Training – contd…

1. Respond to technology changes affecting

job requirements.
2. Respond to organizational restructuring.
3. Adapt to increased diversity of the
workforce.
4. Support career development.
5. Fulfill employee need for growth.
Importance of Training and Development

• Maintain skill levels

• Advance skill and knowledge to improve
– Performance (efficiency)
– Service delivery (error rate)
– Profitability (productivity, manpower)
• Integrate new technologies into work
• Establish standards for work practices
 Benefits of Training - Individuals

• Do job more efficiently – learn new

methods
• Professional approach to work, engaged in
best practice routines
• Personal satisfaction – felt valued
• Recognised qualification to add to CV
The Benefits of Training
• Gives the supervisor more time to
manage, standardized performance, less
absenteeism, less turnover, reduced
tension, consistency, lower costs, more
customers, better service
• Gives the workers confidence to do their
jobs, reduces tension, boost morale and
job satisfaction, reduces injuries and
accidents, gives them a chance to
advance.
• Gives the business a good image and
more profit.
 Benefits of Training-a summary
• Improved customer service and public relations
• Fewer complaints
• Better morale and attitudes
• Less turnover and absenteeism
• More involved and caring employees
• Proactive vs. reactive employees
• MANAGEMENT’s ONE OF THE
MOST IMPORTANT FUNCTIONS IS
TO TRAIN PEOPLE FOR THEIR
JOBS.
Then why is training often neglected?
• Urgency of need
• Training time
• Costs
• Employee turnover
• Short-term worker
• Diversity of worker
• Kinds of jobs (simple-complex)
• Not knowing exactly what you
want your people to do and how
 Attitudes to training
Individual:
• How is that related to
what I do?
• “I’m good at my job and
anyway, I have no time”
• “I suppose that’s my
weekends shot for
months!”
• “Are they trying to get rid
of me?”
Employer:
• How can I be sure the
organisation will benefit?
• Training is so expensive –
how will I know if it has
been effective?
• Will this effect the goal of
developing and
implementing standards
and protocols for the
organisation?
• “If I train them, they’ll
leave”
 Our front-line employees are often “good”
will ambassadors.
• Yet they are the ones who hold the most “thankless” job.
Their role and their understanding of their role is the vital
key towards their development and their ability to provide
excellent customer service.
 Importance of Training
Teaching people How to do Their
Jobs:
• There are three kinds of training:
Job Instruction, Retraining, and
Orientation.
• The big sister/ big brother
system is when a old hand
dominates a newcomer.
• When good training is absent
there is likely to be an atmosphere
of tension, crisis, and conflict
because nobody knows what to
do.
 Training Process Model

II. Developing &

I. Needs
Conducting
Assessment
Training

III. Evaluating
Training
 1. Organizational Level
• Technology change.
• Organizational restructuring.
• Change in workforce.
• Marketing Plans.
• Productivity measures
 2. Job Level
• Job and task analysis.
• Identify Key areas.
• Review procedural and
technical manuals.

Design Training Program

 3. Individual Level
Determine who needs training and
what kind.
• Tests.
• Prior training and experience.
• Performance review.
• Career assessment.
Developing a Unit Training
Program
• This is taught in several sessions.
• It should provide check points to
measure progress.
• Should include two elements:
1. Showing and telling the
employee what to do.
2. Having the employee do it
(right).
• Location should be ambient.
• Training materials should be the
same as used on the job.
Who will do the Training?
• The magic apron method: people
train themselves the easiest ways to
get the job done.
• The person that is leaving trains:
teaches shortcuts and ways of
breaking the rules.
• Big sister, big brother method:
passes on bad habits and may resent
new person as a competitor.
• The logical person to train new
workers is The employer!
How do Employees Learn the
Best?
• Learning is the
acquisition of skills,
knowledge, or attitudes.
• The adult learning
theory is a field of
research that examines
how adults learn. A
number of the following
tips come from the adult
leaning theory.
 How employees learn the best:
• When they are actively involved in the
learning process-(to do this choose a
appropriate teaching method).
• Training is relevant and practical.
• Training material is organized and
presented in chunks.
• Training is in an informal, quiet, and
comfortable setting.
• When they have a good trainer.
• When they receive feedback on
performance.
• When they are rewarded.
How do Employees Learn the Best?

“Tell me and I forget, teach

me and I remember, involve
me and I learn”

- Benjamin Franklin
 Kinds of training
• Informal – on the job, “phone a friend”
• Formal – “attendance” or “completion”
• Formal – certified, vindicated
– Evidence of Return on Investment
– Must be planned
– Allows for customisation, relates to workplace
standards
Job Instruction Training (JIT)
• Also called on the job training.
• Consists of 4 steps:
1. Prepare the learner
2. Demonstrate the task
3. Have the worker do the
task
4. Follow through: put the
worker on the job, correcting
and supporting as necessary.
 Classroom Training Skills
• Be aware of appropriate body
language and speech.
• Watch how you talk to
employees. Covey respect and
appreciation.
• Handle problem behaviors in an
effective manner.
• Avoid time wasters.
• Facilitate employee participation
and discussion.
• Use visual aids to avoid
constantly referring to notes.
 DELIVERING
DELIVERING CUSTOMISED
CUSTOMISED TRAINING
TRAINING
SUCCESSFULLY
SUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING:

1. ASK QUESTIONS
 The only dumb questions are the ones you don’t
ask!

2. MAKE MISTAKES
 Training is a great place to make mistakes. The you
won’t make as many at work in the live environment!
 DELIVERING
DELIVERING CUSTOMISED
CUSTOMISED TRAINING
TRAINING
SUCCESSFULLY
SUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING Continued…

3. HAVE FUN
 This rule is very important

4. CHEAT
 Watch how other people do things or yell for help
 3. Types of Training
Types of Training

1. Skills Training.
5. Creativity Training.
2. Retraining.
6. Literacy Training.
3. Cross-Functional.
7. Diversity Training.
4. Team Training.
8. Customer Service.
1. SKILLS TRAINING
Focus on job knowledge
and skill for:
• Instructing new hires.
• Overcoming performance
deficits of the workforce.
 2. Retraining

Maintaining worker knowledge and

skill as job requirements change due
to:
• Technological innovation
• Organizational restructuring
3. Cross-Functional Training

Training employees to perform a

wider variety of tasks in order to
gain:
• Flexibility in work scheduling.
• Improved coordination.
 4. Team Training

Training self-directed teams with

regard to:
• Management skills.
• Coordination skills.
• Cross-functional skills.
 5. Creativity Training

Using innovative learning

techniques to enhance
employee ability to spawn
new ideas and new
approaches.
 6. Literacy Training

Improving basic skills of the

workforce such as mathematics,
reading, writing, and effective
employee behaviors such as
punctuality, responsibility,
cooperation,etc.
 7. Diversity Training

Instituting a variety of programs to

instill awareness, tolerance,
respect, and acceptance of
persons of different race, gender,
etc. and different backgrounds.
8. Customer Service Training
Training to improve
communication, better
response to customer
needs, and ways to
enhance customer
satisfaction.
 1. Classroom Instruction
PROS CONS
• Efficient dissemination • Learner does not control
of large volume of pace or content
information. • Does not consider
• Effective in explaining individual differences.
concepts, theories, and • Limited practice.
principles. • Limited feedback.
• Provides opportunity for • Limited transfer to job.
discussion.
 2. Video and Film
PROS CONS
• Provides realism.
• Does not consider individual
• Adds interest. differences.
• Allows scheduling • Limited practice.
flexibility. • Limited feedback.
• Allows exposure to • Adds additional cost.
hazardous events. due to:
• Allows distribution to * Script writers
multiple sites. * Production specialists
* Camera crews
 3. Computer Assisted Instruction
PROS CONS
• Efficient instruction. • Limited in presenting
• Considers individual theories and principles.
differences. • Limited discussion.
• Allows scheduling • Transfer depends on
flexibility. particular job. (Good for
• Allows active practice computer work.)
for some tasks. • High development cost
• Allows learner control. (40-60 hours per hour of
• Provides immediate instruction at approx Rs.
feedback to tasks. 10,000 per hour.)
 5. Simulation
PROS CONS
• Provides realism. • Cannot cover all job
• Allows active practice. aspects.
• Provides immediate • Limited number of trainees.
feedback. • Can be very expensive (for
example, “aircraft
• Allows exposure to simulators” and “virtual
hazardous events. reality” simulators).
• High transfer to job.
• No job interference.
• Lowers trainee stress.
 6. On-The-Job Training
PROS CONS
• Provides realism. • Disruptions to operations.
• Allows active practice. • May damage equipment.
• Inconsistent across
• Provides immediate departments.
feedback. • Inadequate focus on underlying
• High motivation. principles.
• High transfer to job. • Lack of systematic feedback.
• Lowers training cost. • Transfer of improper
procedures.
• Trainee stress.
 IITTM
M.B.A.-IISemester (PGDM-tt)

Unit III

Performance Management
 Introduction, Performance
Objectives and Plans
What is Performance Management?
• Systematically managing all the people in an
organization, for innovation, goal focus,
productivity and satisfaction--it is a goal-
congruent win - win plan
What is Performance Management?
• Armstrong and Baron define
performance management as a
“strategic and integrated approach to
delivering sustained success to
organizations by improving performance
of people who work in them and by
developing the capabilities of teams and
individual contributors
What is Performance Management?
• It is integrated, because it effects four types
of integration

– Vertical
– Functional
– Human Resource
– Goals
What is Performance Management?
Performance Managed Organizations are likely
to have the following characteristics:

– Measurable performance targets

– Manage-learning linked with organizational

goals on the one hand and with career
development on the other
What is Performance Management?

– Pre-eminence of intrinsic needs of

managers without neglecting their extrinsic
needs

– Ownership of performance management by

line management rather than the personnel
function
 The Manager’s Concern and Interests

• The rationale for establishing a performance

management system does, and must emerge
from the managers’ concerns and interests
• To be effective, this process must start with
identification and analysis of the managers’
performance problems and related management
skills, in the context of the specific organization
The Manager’s Concern and Interests

– remedying poor performers and performance

– bridging gaps in performance expectations

– securing equitable rewards and punishment

decisions from the management

– softening performance pressures through

appropriate planning, scheduling and
delegation
Key to Performance Management
• Building organizational capability and
successful implementation of high-
commitment management practices is a key
managerial responsibility

• High-performance management practices

require consistent leadership attention, while
time and attention are the scarcest of
resources in most organizations
Key to Performance Management

Three basic principles, which effective

leaders use to transform their
organizations into high-commitment
models of management are:

– build trust
– encourage change
– use appropriate measures
 Performance Management and People
Management

• Performance management is that part of an

organization’s people-related function, which is

performed by those directly managing the

people
 Performance Management and People
Management

Within any organization, there are atleast two

levels of effort, that

• concern the performance of its people

• and optimize individual and collective output

Performance Management and People
Management
– effort at the organizational level, which
determines the organization’s internal
environment

– effort at the managerial level, which

constitutes core of the leader-manager role---
what each manager does to supervise his
managees
 Performance Management System

• A set of sequential dynamic subsystems

• Like any system, it has relatively autonomous,

but interdependent and inter-related parts, which
ensure effective and smooth functioning of the
total system
Performance Management System

• Three broad sub-systems:

– planning managee performance and

development

– monitoring managee performance and

mentoring managee development

– annual stocktaking
 Organizational and Individual
Performance Plans

Convergent goals and expectations in an

organization for group and individual

performance would naturally flow from the

organization’s performance plans

Organizational and Individual
Performance Plans

– The organization’s mission and goals and

its long-range or strategic plans

– The organization’s annual operating plans,

circumscribing the team or project-level

performance goals
Organizational and Individual
Performance Plans

• Organizational values and work ethics to

be observed in course of achieving the
goals

• Organization-wide job descriptions,

indicating skills and competencies
needed
 Organizational and Individual
Performance Plans

Annual operating plans and work ethics of the

organization feed into objectives and strategies
of the various organizational sub-units--
departments, divisions, groups, branches,
teams, projects, etc, and the individual managee
roles--their role descriptions and performance
targets
Research Base for Performance Planning
and Goal Setting

Goal setting theory

– setting goals at work can help a managee

incorporate ways to meet his personal and
professional needs, thereby optimizing goal
congruence between him and the
organization
Research Base for Performance Planning
and Goal Setting

Goal setting theory

research confirms that goal-setting

improves managee performance at all
levels---managerial as well as non-
managerial---over extended periods of
time, in different kinds of organizations
Research Base for Performance Planning
and Goal Setting
Goal setting theory

• According to Gordon, goals vary on three

dimensions:

– specificity
– difficulty
– acceptance
 Performance Standards

• Organizations need performance standards, at

the level of individual managees as well as at
the project or functional or programmatic levels

– Organizations want to standardize precise

expectations
 Performance Standards

•
– Managees need equitable and consistent
standards for their individual performance,
comparable to others in the organization,
to be monitored or assessed by
 Performance Standards

– Managees expect that managers

everywhere in the organization will use
identical--at least similar---standards to
measure the performance of competing
positions
 Performance
Measurement
What gets measured gets done and …
What gets measured becomes important!
Performance Management – the linking pin !
•Starting with the
ultimate goal and
Vision mission of the
Strategy organisation.
•Aligning the business
Processes units, teams and
individuals
Systems
Performance
Management
Behavior and Actions
Results
What employees look for – the linking pin!
•Understand what is
expected form them
Vision •This will lead to
Strategy aligning individuals
towards achievement of
Processes organisational goals
Systems

Performance
Management
Behavior and Actions
Results
 What does Performance Management Involve?
 Achievement of strategic goals & objectives
 Allocation of KPI’s
 Facilitate employee personal development as part of a
integrated process
 Understanding true strengths and weaknesses at every
level of the organisation
 Transformation of people management into a result-driven,
strategic business function
 Alignment of employee goals and actions with corporate
strategy
 Retention of top performers and development of low
performers
 Increased quality and frequency of communication between
managers and employees
 CEO Questions
 Have I set the right organisation goals to achieve my strategy?
There must be a more systematic approach we could use for
goal setting.
 What kind of behaviors and skills and focus should I be
directing my employees to have in order to achieve these
goals?
 Does anyone know what behaviors will most likely help to
improve our financial performance or improve customer
satisfaction?
 Do the employees understand my vision and strategy? Have
they been clearly communicated?
 Do employees buy-in to these goals and do they understand
and buy-in their role or their divisions role in meeting the
strategy?
 CEO Questions Cont.,
 Is my company structured optimally to fulfill our Strategy?
 Have we set up a performance incentive system that aligns
with our organisation strategy? Does it include objectives that
our staff care about?
 Do I have the right tools, systems and processes in place,
both formal and informal to support performance related
communication?
 Isn’t there some form of automation that can give me more
detailed, relevant information.
Performance
Management
May the most agile win …
Measurement and Performance
 There are some questions that are relevant for business:
 Do we attract and retain the right people with the right skills?
 Are we performing effectively in our operations to produce and
deliver to our stakeholders?
 Are we meeting or exceeding our stakeholders expectations?
 How are we doing financially?
o Margins?
o Costs?
o Revenues?
o New business revenues?
So far so good …….. But …..

 Is there any difference between organisational and

individual performance management?
 Where should management put more attention to
when managing performance?
 At the end …what is performance management?
Defining Individual performance
Performance Competencies,
Management knowledge and
Support and tools skills
KNOWLEDGE
I know how
to do it

CONTEXT Motivation
I know what
to do WILLINGNESS
I want to do it

Performance: Those behaviours, that under the

right conditions, lead to the expected results
 The need to cascading down to level n…
Value for clients, stakeholders
And employees

Organisational Strategies

Divisions, Sections,
Programs Plans etc
Individual Action

Best Practices
• In value based managed enterprises, individual employees understand how processes and
day-to-day activities contribute to value creation
• They know what they have to do individually to contribute to value creating
• This value creation focus becomes the basis for determining appropriate performance
measures and enables to differentiate between what could be measured and what should be
measured (Business Balanced Scorecard Concept)
Individual performance management infrastructure

Performance Management
infrastructure
1. Roles & Responsibilities
2. Annual objectives and feedback
3. Competencies model

Organisation Compensation & Career Training & Recruiting &

Structure Incentives Development Education Selection

Integrated People Management Process

Performance Management System

PERFORMANCE MANAGEMENT
GOAL MANAGEMENT COMPETENCY MANAGEMENT

Core Capabilities &

Corporate Goals Key Competencies

Team Goals Competency Mix

Individual Goals Individual Competency

Competencies….
What are competencies?
 Competencies are a set of behaviours that encompass
skills, knowledge, abilities, and personal attributes
that, taken together, are critical to successful work
accomplishment.
Organisational and Individual Competencies
 Organisational Competencies:
 Pinpoints the most critical competencies for
organisational success. These are an organisation’s
core competencies.
 Individual Competencies:
 Those competencies that each employee brings to his
or her function.
What is a Competency Framework?
 A Competency Framework is a map to display a set of
competencies that are needed to achieve an
organisation’s mission, vision, and strategic goals.

 A Competency Framework is future-oriented, providing a

master of core individual competencies required to
develop the ideal future workforce.

 The competencies that make up the framework will serve

as the basis for future employee management, since
they play a key role in decisions on recruiting,
employee development, personal development, and
performance management.
Why a Competency Framework?
 A Competency Framework will help to bridge the gap
between where the organisation is now and where we
want to be in the future.

 This occurs in two ways.

 Serves as a guide for management in making decisions, since it
is based on the competencies that support the mission, vision,
and goals of the organisation.
 Serves as a map to guide employees towards achieving the
mission of the organisation and their functional areas.
Approaches to Competency Profiling
Two approaches to competency profiling:
 Top-down approach:
 Generally involves picking, based on a strategic analysis of the
organization's performance objectives, an array of competencies
from a dictionary of competencies and assessing those for a
particular position or class of positions.
 Bottom-up approach:
 Involves exploratory checklist surveys and subsequent
confirmatory interviews to derive the competencies from
employees.
Functional Competencies
 Administrative Knowledge
 Business Acumen
 Computer
 Filing
 Financial
 Health & Safety Knowledge and Skills
 Human Resources
 Industrial Relations
 Legal Knowledge
 Management Information
 Marketing/Sales
 Procurement
 Quality Knowledge and Skills
 Security
 Typing
Task and Leadership Competencies
 Analytical Ability
 Assertiveness
 Conflict Handling
 Customer Focus
 Decisiveness
 Flexibility
 Individual Leadership
 Initiative
 Judgement
 Leadership of change
 Negotiation Skills
 Oral Presentation
 Oral Persuasiveness
 Performance Orientation
 Persistence
Task and Leadership Competencies
 Planning/Organising/Control
 Self-development orientation
 Strategic and Global Perspective
 Team Leadership
 Values
 Verbal Communication
 Written Communication
Competency & Skill Library Features & Benefits
 Comprehensive Library
No need to “reinvent the wheel.” Allows a quick start.
Completely customisable: Create new skill groups, skills, and sub-
skills as needed

 Create Common or Unique Performance Levels

Define different levels of competence (for example, from beginner to
expert) for each competency, or use one scale for all

 Input Performance Targets

Identify performance expectations for each competency/skill group
for entry level up to senior management
Competency & Skill Library Features & Benefits
 Define Behavioural Indicators
If desired, enter behavioural examples/targets for competencies and
skills

 Continually Enhanced and Grows in Value

The library is easily enhanced as a by-product of job profiling,
performance planning, and employee development

 Fully Integrated with Other HR Functions

Your competency/skill library is used in every other function of HR, it
ties them all together, and allows consistency throughout all of your
performance management and developmental programs
Job Profiling…
What is Job Profiling
 Job Profiling is a systematic procedure for identifying the
Competencies critical for success in a particular job or
a job role.

 Job profiles can then be used for recruitment,

selection, performance review, promotion, career
development and succession planning.
Job Profiling Procedure
 Step 1: Obtain background information about the job to
be profiled and how that job fits into the organisation.

 Step 2: Develop an initial list of the tasks most relevant

to the job being profiled.

 Step 3: Meet with subject matter experts (SMEs)—

incumbent workers or supervisors of the job being studied
—who review and revise the list, adding, deleting,
consolidating, or changing the wording of each task to
make sure that the list of tasks accurately represents the
job as it is performed in the organisation.
Job Profiling Procedure
 Step 4: Present detailed descriptions of each of the
Analytix Competency Framework to the SMEs. The
SMEs decide, as a group, which competencies are
relevant to the job and which skill levels are necessary
for entry into the job and effective performance in the
job.

 Step 5: The final product of the profiling procedure is

a report listing the most critical tasks an individual in that
job must perform and, for each relevant Analytix
competency, the skill level required to perform the job.
Example of Individual Target Setting

Step 3: Set Measurable Targets for Individuals

Department
Programme
Personal development needs and
Team objectives aspirations

Individual objectives
Self Manager

Objectives
pl e Target
Final
Result Weighting Assess Assess

m
% 1–5 1–5 1-5

a
Grow net new money excluding market growth 10% 6% 40% 4 3 3

x
by the end of Q4 2001

E
Improve client satisfaction feedback by setting Survey 40% 4 4 4
up an appropriate survey by Q3 2001 set up
Improve capabilities in client service by Attended 20% 2 4 3
attending course by end Q4 2001
 p l e
am
E x
 p l e
am
E x
 p l e
am
E x
 IITTM
M.B.A.-IISemester (PGDM-tt)

Unit III

Potential Appraisal
What do you mean by Potential Appraisal?

POTENTIAL APPRAISAL

Qualities that exist Evaluation

and can be developed

• Beyond the Present Role.

Overview of POTENTIAL APPRAISAL
• How Indian organisations give promotions
to their people?
• What is the nature of the Indian
organisation?
• At every designation each individual has to
perform different roles, responsibilities and
functions.
Promotions A Big Problem!
• Promotions are given on the basis of past
performance.
- An assumption is being made that
competence in performing the present
role is sufficient indicator of
competence to perform a higher and
different role in the organisation.
• Seniority is given more priority then
Younger Talents.
Definition:-
Potential appraisal is concerned with identifying
the potential of an employee for future
development and promotion in the organisation.
Objective:-
To identify the potential of a given employee to
occupy higher positions in the organisational
hierarchy and undertake higher responsibility.
Why Potential Appraisal System is needed?
• It attempts to generate
- Data about employees
- Their potential for occupying higher
positions from a variety of sources and helps the
top management to make decisions.
• The organisation also has the responsibility for
developing the managerial talent so this system
also helps the management in identifying
employees whose capabilities can be developed.
 Steps to be followed for a good
potential appraisal system
• Role Descriptions
• Qualities required to perform the roles
• Indicator of Qualities
- Rating by Others
- Psychological Tests
- Simulation Games and Exercises
- Performance Appraisal Records
• Organising the System
• Feedback on Potential Appraisal for Career Dev.
Linkages with Other System
• Feedback and Counseling
• Training
• Job Rotation
• Data Storage
• Manpower Planning
Current Status and Experience
• Indian Organisations are yet to focus their
attention on potential appraisal.
• With Growth Opportunities all around, their
has been high mobility among executives.
Due to this Mobility, most organisations
are not willing to invest their time and
effort in identifying and developing the
potential of managers.
• Potential appraisal is time consuming
activity.
Examples:
• CROMPTON
GREAVES LTD.
• BPL
• Dr. REDDY
Potential Appraisal Form
• Potential appraisal is an important part of the appraisal
process. Appraising an employee’s potential helps to
evaluate and his/her capability for growth and
development to greater challenges, responsibilities and
positions in the organisational hierarchy. Most
organisations incorporate potential appraisal in their
appraisal processes for identifying and developing
suitable employee base for succession planning.

• This Appraisal concentrates on the future, based on the

performance of the past and helps in developing the
personal interests of the employees in alignment to the
organisational goals.
With the help of the potential appraisal form, the
employees/ individuals are judged on various
performance and behavioural parameters like:
• The performance areas in which the improvement or
development is indicated.
• The accomplishments and the targets achieved in the
current appraisal period

Overall rating of the performance

• What skills, knowledge, competencies and qualities
should be developed?
• Has the employee taken any steps for improving his
performance and his career development?
• Recommendations for the training and development of
the employee
• Updating knowledge on the latest developments on their
job related and subject areas.
Rate the employee on the following characteristics
or how does the employee fair on following
behavioural characteristics:
• Decision making
• Independent
• Confidence towards the job
• Handling stress and pressure
• Inter-personal skills, both with superiors and
subordinates
• Leadership, motivating and conflict handling

The past performance of the employee and the

potential of performing in future helps to identify
the hidden talents.
 IITTM
M.B.A.-IISemester (PGDM-tt)

Unit III

Succession Planning
“We put good people in big jobs before

they are ready.”

—Pepsi Co.
What is Succession Planning?
 A means of identifying and developing talent or
high achievers in the organization.

 It also provides continuity in all key positions in

the organization.

 It is part of the process of preparing for the

future of the organization.
 Why is it important to have a
Succession Plan?
• Provides a means for the organisationto
develop its human capital and have full
access to a broader base of talent.

• Assures an on-going supply of qualified

people to be ready to assume positions
and carry on and excel when the current
people move up, retire or move on.
Why is it important to have a
Succession Plan?
• Aligns the future needs of the Agency with
the availability of appropriate resources.

• Improves morale and commitment to the

organization.

• Serves as a positive recruitment tool that

your Agency is a good, challenging and
stimulating place to work.
 Some Statistics

• 7% of government organizations have

succession plans in place as compared to
61% of private sector organizations.

• 93% of private business say they are

planning to have succession plans as
compared to 28% of government
organizations.

- National Academy of Public Administration Survey

 Goals of a Successful
Succession Plan
1. It supports the Strategic/Business Plans of
the organization.

2. It is successfully implemented and is

responsive to change.

3. It builds and sustains high performance of

the organization.
 Succession Planning: Key Elements
Assessment of
Key Positions

Identification of
Key Talent

Key
Development Elements
Monitoring & Review

Assessment of
Key Talent

Generation of
Development Plans
 Succession Planning: Key Elements
1. Assessment of Key Positions:
• What are the competencies and experiences needed
to qualify for each key position?

2. Identification of Key Talent:

• Typically people at the top two levels of the organization
and high potential employees one level below.
• Identified by their management’s assessment of their
performance and potential for advancement.

3. Assessment of Key Talent:

• For each person on the radar screen, primary development
needs are identified focusing on what they need in order
to be ready for the next level.
 Succession Planning: Key Elements

4. Generation of Development Plans:

• A development plan is prepared for how we will help the
person develop over the next year.

5. Development Monitoring & Review

• An annual or semi-annual succession planning review is
held to review progress of key talent and to refresh or
revise their development plan.
 10 Key Steps
1. Succession Planning must be linked to the
organisation’s overall Strategic Plan
2. Identify critical competencies and
characteristics needed at all levels of the
organization to support the organisation’s future
strategic direction
3. Identify critical competency gaps between the
current and those needed for the future of the
organisation
 10 Key Steps (continued)
4. Establish measurements that will help
guide and evaluate succession RESULTS
5. Identify strategies that can help the
Agency recruit, develop and retain talent
who can help close gaps
6. Monitor key employees and their career
progression
7. Align all phases of the HR process with the
Succession planning process
 10 Key Steps (continued)
8. Have consistency and uniformity in the process of
job analysis, definition of competencies, criteria for
selection, and in performance evaluations
9. Understand issues related to logistics, fairness
concerns and defensibility of establishing a pool of
candidates to be involved in succession planning
activities
10. Systematically review the Succession Planning
process – modifying and adjusting according to the
changing needs of the organisation
 Levels of Management

Senior: Strategic Multi-Year

Middle: Strategic/Operations

Supervisor: Operations Yearly

Employees: Operations Day to Day

Primary Skill Requirements of
Management
• Creating Strategic Alliances
Senior:
• Strategically positioning the Organization

• Collaborating Across Functions

Middle:
• Integrating Organizational Outcomes

Supervisor: • Facilitating Workgroup Performance

Systems Approach to Succession
Planning
Identify the:

• Desired outcome (Future State)

• Key Measures of Success (Feedback)
• Current State
• Strategies and action steps
Core Principles Underlying Succession Planning

1. Leaders really do matter … in managing/driving accountability, results,

culture.
2. Performance is what counts … top performers over high potentials
(the “what” & “how” both count).
3. Today’s top performing leaders aren’t necessarily tomorrow’s …
even our best leaders can fall behind or derail.

4. Talent is an enterprise resource … willingness to share talent makes

the system work.
5. A broad set of experience & assignments is the best classroom …
yet a balanced approach is still necessary for development.
6. It’s incumbent upon today’s “top-100” to leave a legacy of
future talent … current leaders must teach, mentor, & role model others on what
it takes to succeed.
7. Invest in the best … focus the rest.
 SUCCESSION CANDIDATES

KEY POSITION TITLE ________________________

Backup Candidate Name: ______________________

Current Title: ________________________________

Div: ______________ Level of Readiness (Circle One):

Within 1 Yr. 1–3 Yrs. 3–5 Yrs.

__________________________________________________

Strengths for this position:

Developmental needs for this position:

 SUCCESSION PLAN SUMMARY

ORGANIZATION:_____________________
Position Succession Candidate
Vulnerability Names
Key Position Incumbent
Open Open Open Ready in Ready in Ready in
Title Name in in in
< 1 Yr 1–3 3 + Yrs < 1 Yr 1–3 Yrs 3 + Yrs
Yrs
 EXECUTIVE DEVELOPMENT PLAN 2. Special Assignment: (What task force, projects, or special
assignments will be given this year to aid development?)
NAME: ________________ TITLE: ________________                

verall Performance Summary:

ndicate recent performance including major accomplishments 3. Training: (What specific training or seminars are
performance issues.) recommended this year for his/her development?)
                    

     

ey Strengths:
ist 2 - 3. Indicate key technical or professional competencies,
Potential For Promotion:
ills, or knowledge the person has.)
(Indicate this persons readiness to be promoted to the next
             
organizational level.)

evelopment Needs: Ready now for the next level.

ist 2 or 3. Indicate key experiences, skills, or knowledge the
rson lacks in order to move to the next level.) Ready in the next 24 months.
             
Ready in 2 to 3 years.
evelopment Actions:
On The Job: (What new responsibilities do you plan to assign
help this person develop this year?) Recommended Next Position: (List the next assignment that
              would most benefit the individual in his/her development.)
 PLANS FOR SELECTED TALENT

ORGANIZATION:_____________________

Name Title High Level Plan

Semi-Annual Succession Planning
Review
• Review of succession candidates and
development plans in each organizational unit
• Report development progress and make
necessary adjustments to the plan
• Orchestrate moves for the next six months
 IITTM
M.B.A.-IISemester (PGDM-tt)

Unit IV

Conflict and Stress

Management
 Primary Levels of Conflict
Within Organizations
Intrapersonal (within an individual)
Interpersonal (between individuals)
Intragroup (within a group)
Intergroup (between groups)
 Conflict
Conflict: “A process in which one party perceives that its
interests are being opposed or negatively affected by another
party.”

Functional conflict serves the

organization’s interests while

Dysfunctional conflict threatens

the organization’s
interests.
 Antecedents of Conflict
• Incompatible personalities or value systems.
• Overlapping or unclear job boundaries.
• Competition for limited resources.
• Interdepartment/intergroup competition.
• Inadequate communication.
• Interdependent tasks.
• Organizational complexity.
 Antecedents of Conflict (continued)
• Unreasonable or unclear policies, standards, or
rules.
• Unreasonable deadlines or extreme time
pressure.
• Collective decision making.
• Decision making by consensus.
• Unmet expectations.
• Unresolved or suppressed conflict.
 Sources of Interpersonal
Conflict
• Competition for Limited Resources
• Role Conflict
• Competing Work and Family Demands
• Building Stone Walls
• Personality Clashes
• Aggressive Personalities Including Bullies
 Marketing – Manufacturing
Areas of Potential Goal Conflict
MARKETING VS. MANUFACTURING
Operative goal is Operative goal is
Goal Conflict customer satisfaction production efficiency

Conflict Area Typical Comment Typical Comment

Breadth of product line: “Our customers “ “The product line is too

demand variety.” broad, all we get are
short, uneconomical runs.”
New product introduction: “New products are our “Unnecessary design changes
lifeblood.” are prohibitively expensive.”

Production scheduling: “We need faster response. “We need realistic customer
Lead times are too long.” commitments that don’t
change like the wind direction

Physical distribution: “Why don’t we ever have “We can’t afford to keep huge
the right merchandise inventories.”
in inventory?”

Quality: “Why can’t we have “Why must we always offer

reasonable quality options that are too
at low cost?” expensive and offer little
customer utility?”
 Desired Outcomes of Conflict

Agreement: Strive for equitable and fair agreements that

last.

Stronger relationships: Build bridges of goodwill and

trust for the future.

Learning: Greater self-awareness and creative problem

solving.
 Tips for Managers Whose Employees
Are Having a Personality Conflict
1. Follow company policies for diversity, anti-
discrimination.
2. Investigate and document conflict.
3. If appropriate, take corrective action (e.g.,
feedback or B Mod).
4. If necessary, attempt informal dispute resolution.
5. Refer difficult conflicts to human resource
specialists or hired counselors for formal
resolution attempts and other interventions.
 How to Build Cross-Cultural
Relationships and minimize Conflict
Behavior Rank
Be a good listener 1
Be sensitive to the needs of others 2
Be cooperative, rather than overly competitive 2 Tie
Advocate inclusive (participative) leadership 3
Compromise rather than dominate 4
Build rapport through conversations 5
Be compassionate and understanding 6
Avoid conflict by emphasizing harmony 7
Nurture others (develop and mentor) 8
 Three Views
of Conflict
Human
Traditional
Relations
Interactionist
Communication Sources of
Differences
Conflict
Structural
Differences

Personal
Differences
 Conflict-handling Styles
High

Forcing Collaboration
Assertiveness

Compromise

Avoidance Accommodation

Low High
Cooperativeness
 Conflict and Unit Performance
High
Unit Performance

A B C

Low Level of Conflict High

Situation Conflict Level Conflict Type Internal Characteristics Outcomes

A Low or none Dysfunctional Apathetic, stagnant Low

B Optimal Functional Viable, innovative High

C High Dysfunctional Disruptive, chaotic Low

 When to Stimulate Conflict
• Are you surrounded by “yes” people?
• Are employees afraid to admit ignorance?
• Do decision makers sacrifice values for compromise?
• Do managers maintain an “impression” of cooperation?
• Are managers overly concerned about the feelings of others?
• Is popularity more important than performance?
• Do managers crave decision-making consensus?
• Are managers resistant to change?
• Is there a lack of new ideas?
• Is turnover unusually low?
 How to Stimulate Conflict

• Legitimize conflict

• Use communication

• Bring in outsiders

• Use structural variables

• Appoint a “devil’s advocate”

Constraints
Constraints Demands
Demands

What
What Is
Is Stress?
Stress?
Uncertainty
Uncertainty Importance
Importance
 What is Stress?

An adaptive response to a situation that

is perceived as challenging or threatening
to the person’s well-being.
 Stress
• Many people are familiar with a cognitive
model of counseling which suggests that
events themselves don’t affect us--our thinking
about those events does.

• Hans Selye was an early thinker in the field,

who argued that stress may be considered
“good stress,” or “bad stress,” depending upon
its effects on the person experiencing it. If
stress in and of itself is not bad for you, then
aren’t we talking about managing our response
to stress, instead of the stress itself?
 Stress
• With this in mind, what kinds of feelings
(physical and emotional do you get when you
get “stressed out?”
– Apprehension.
– Uneasiness.
– “Butterflies” in the stomach.
– Autonomic reactivity.
– Withdrawal and isolation.
 Myths about Stress Management
• Stress is always bad.
– How many people like to be stressed?
– If you stopped people on the streets and asked what
they think about stress, what kind of response would you
expect?
– On the one hand, we hear that over 50% of routine
medical visits are due to stress-related conditions…but
what does this mean?
– Temptation is to believe that if we just did away with
stress, our problems would also vanish.
– Problem is, stress has an adaptive function, too.
Sometimes we need stress responses in order to
perform.
• Endocrine response prepares body for action.
• Cognitive focus improves.
– In addition, good things can be stressors, too.
Myths about Stress Management
• Catastrophic stress is the worst kind.
– When we think of stressors, we often think about the really bad things
that happen, and there’s no question that we don’t want to experience
these things.
– But the fact is that we are also affected by the routine, everyday
“hassles” that all of us do experience.
– And sometimes the effects of those hassles can build up and have
similar effects as even the most serious catastrophic crises and
stressors.
– Lazarus has done significant work in this area, and has demonstrated
the injurious effects of these hassles. Top ten hassles:
• 1) Physical appearance
• 2) Crime
• 3) Money and taxes
• 4) Home maintenance
• 5) Losing or misplacing things
• 6) Too many things to do
• 7) Cooking and cleaning
• 8) Rising prices
• 9) Health
• 10) Concern about weight
Myths about Stress Management
• Stress causes illness.
– There is a clear link between stress and illness. No
question about that fact.
– There have been some elegant studies. One from the
NEJM in 1991, examined development of cold symptoms
from individuals stratified according to stress level, who
were then administered a cold virus through a nasal spray!
Sure enough, individuals with higher stress levels tended to
get colds more than those with lower stress.
– What is in question, however, is what kind of stress, to what
kinds of people, in what kinds of settings, under what kinds
of conditions, is most harmful?
– The problem is, no one has been able to find a link that
works all the time. There are obviously moderators, like
personality variables (optimism, negative affect,
perceptions of stress), previous experience, and a host of
other factors.
 Task Demands

Role Demands

Organizational
Interpersonal Demands
Stress Factors
Structural Dimensions

Leadership Techniques
 Personal Stress
Factors

Family Personality Economic

Stressors and Stress Outcomes
Individual Consequences
Work
Differences of Stress
Stressors

Interpersonal
Physiological
Role-related Stress
Behavioral
Task control

Organizational/ Psychological
Physical
Environment

Nonwork
Stressors
 Stress Physiological
Physiological

Psychological
Psychological

Behavioral
Behavioral
Three
Three General
General Symptoms
Symptoms
General Adaptation Syndrome
Stage 1 Stage 2 Stage 3
Alarm Reaction Resistance Exhaustion

Normal
Level of
Resistance
 What are Stressors?

Stressors are the causes of

stress -- any environmental
condition that places a physical or
emotional demand on the person.
 Interpersonal Stressors
• Considered the most common group of
workplace stressors
• Include:
– Team dynamics
– Organizational politics
– Bad bosses
– Workplace violence
– Psychological and sexual harassment
 Psychological Harassment
Repeated and hostile or
unwanted conduct, verbal
comments, actions or
gestures, that affect an
employee's dignity or
psychological or physical
integrity and that result in a
harmful work environment for
the employee
 Minimizing Harassment
1. Develop policies and culture of a more
respectful workplace
2. Screen job applicants for past incidents
where they have harassed others
3. Use multi-source (360-degree) feedback
to identify harassing behavior
4. Develop a trustworthy conflict resolution
process
 Role-Related Stressors
• Role conflict
– Incongruity or incompatibility of expectations
associated with the person’s role
– Occurs when two roles conflict with each other
– Occurs when personal values conflict with work roles

• Role ambiguity
– uncertain task and social expectations

• Work overload
– increased hours and intensity
 Task Control Stressors
• Stress increases when employees lack
control over:
– How and when tasks are performed
– Pace of work activity

• Low task control is a higher stressor

when job also has high responsibility
 Org & Physical Environment
Stressors
• Organizational
– Most prevalent is downsizing, which affects layoff
survivors
• reduced job security
• chaos of change
• additional workloads
• guilt of having a job as others lose theirs
• Physical Environment
– Due to excessive noise, poor lighting and hazards
Work-Nonwork Stressors
• Time-based conflict
– due to business travel, inflexible
and/or rotating work schedules
– for women -- still do most
household chores
• Strain-based conflict
– work stress affects home, and
vice versa
• Role behavior conflict
– incompatible work and family
roles
 Stress and Occupations

Accountant Hospital manager President

Artist Doctor (GP) Prison officer
Car Mechanic Psychologist Teacher
Forest Ranger School principal Nurse

Low-Stress Medium-Stress High-Stress

Occupations Occupations Occupations
 Individual Differences in Stress
1. Different threshold levels of
resistance to stressor

2. Use different stress coping

strategies

3. Perceive the situation

differently
– Knowledge and skill
– Natural optimism and confidence
(resilience)
© Photodisc. With permission.
Individual Differences: Resilience
• Capability of individuals to cope successfully in the
face of significant change, adversity, or risk
• Personality traits
– extroversion, low neuroticism, internal locus of control, high
tolerance of change, and high self-esteem
• Adaptability to stressors
– high emotional intelligence
– good problem-solving skills
– productive coping strategies
• Inner strength/sense of purpose
– Workplace spirituality
Consequences of Stress
Cardiovascular disease,
Physiological hypertension, headaches

Work performance, accidents,

Behavioral absenteeism, aggression, poor
decisions

Dissatisfaction, moodiness,
Psychological depression, emotional fatigue
CONSEQUENCES OF DISTRESS
• Physiological consequences – chronic
stress may lead to cardiovascular disease,
strokes, heart attacks, hypertension
(whenever people are stressed, their blood
pressure goes up and down).

• Psychological consequences – chronic

stress may also lead to job dissatisfaction,
moodiness, and depression.
 BEHAVIORAL CONSEQUENCES

• Distressed employees may lead to workplace

accidents, decrease performance, and high
levels of absenteeism.

• Workplace aggression – refers to a situation

whereby employees engage in verbal conflict.

• Aggression represents the fight (instead of flight)

 Job Burnout Process
Interpersonal and
Role-Related Stressors

Emotional
Exhaustion

Physiological,
psychological,
Cynicism
and behavioral
consequences

Reduced Efficacy
Stress Management Strategies

Remove the
Stressor

Receive Withdraw
Social Stress from the
Support Management Stressor
Strategies
Change
Control Stress
Stress
Consequences
Perceptions
 Remove the Stressor
• Stress audits -- investigate sources of
stress
• Change corporate culture and reward
system
• Provide environment that supports
empowerment
• Person-job matching
• Work-life balance initiatives
 Work-Life Balance
• Flexible work time
• Job sharing
• Teleworking
• Personal leave
• Childcare support
Stress Mgt. At Liggett-Stashower
When employees at Liggett-
Stashower, Inc. in Cleveland
need a short break from the daily
stresses of work, they retreat to
one of three theme rooms,
including this karaoke room. “The
higher the stress level, the more
Courtesy of Liggett Stashower, Inc.
singing there is going on,” says
Liggett’s art director.
Withdraw from the Stressor

• Permanent withdrawal
– Remove employees from
jobs not aligned with their
competencies
• Temporary withdrawal
– Coffee/lunch breaks
Courtesy of Liggett Stashower, Inc. – Karaoke breaks (photo)
– Sabbaticals
 Other Stress Mgt Strategies
• Change stress perceptions
– Self-confidence, self-leadership

• Control stress consequences

– Relaxation and meditation
– Fitness and wellness programs

• Social support
– Emotional and informational
 Stress Management
• Selection and placement

• Job redesign

• Participation

• Wellness programs

• Employee assistance
The Use of Counseling and
Discipline to Improve
Employee Productivity
 Counseling vs. Discipline

Counseling Discipline
• Face-to-face • Penalization
Communication
• MUST be conducted by
• Conducted by Human Resources
supervisor
• Typically, second form
• Usually, first form of of action (if counseling
action fails)
 Counseling is Not Working, Now
What?

• If counseling with the employee

fails, or the nature of offense is
beyond counseling, disciplinary
action is reviewed by Human
Resources who will typically
recommend courses of action
Before Reporting to Human
Resources: Gather the Facts
– What happened?

– Who was directly involved

– Did anyone witness (see and/or hear)

anything?

– Was the employee asked to explain?

– List any extraordinary circumstances

 Before Reporting to Human
Resources: Gather the Facts
• Should the employee reasonably
have known the actions were
wrong? How?

• Be prepared to :
– discuss the employment history of the
employee

– Discuss any previous counseling

– Discuss any previous discipline

 Before Reporting to Human
Resources: Gather the Facts
• Be prepared to (cont’d):

– Define rating of performance

– Identify any other employees in the unit who have

acted similarly? If so, when & what happened?

– Discuss the impact on the immediate supervisor

and the unit

– Provide any and all documentation and proof to

serve as evidence
 Common Reasons for Discipline
• Time and Attendance

• Marginal or unsatisfactory
Performance

• Behavior Problems and

Insubordination
 Time and Attendance
• All leave, except for emergencies
and illness must be approved in
advance

• Scheduled Leave:
– Meetings, routine medical appointments,
vacation

• Unscheduled Leave:
– Illness of self or family
 Tardiness
• Employees are expected to be at their
workstation at the prescribed start times.
Arriving late at the start of the day or after
the lunch break, may constitute tardiness.
Regardless of how many minutes.

• When known in advance, should notify

supervisors prior to shift.

• Classified staff - if more than 7 minutes

late, should charge accruals
Guidelines for Dealing With Time Abuse

• Maintain and analyze attendance record

• Call-in directly to supervisor or chain of

command

• Counsel employee when appropriate

 Guidelines for Dealing With Time
Abuse
• Learn to say “no” to requests
that reasonably could have
been made in advance, where
appropriate

• Consult with Human Resources

for options, including:
– Asking for documentation, and
leave requests to be in writing
 Why Marginal or Unsatisfactory
Performance?
• Lack of communication between
supervisor and employee regarding
performance expectations

• Lack of necessary skill or knowledge

• Lack of commitment by employee

• Personal problems
 Elements of Behavior Problems
and Insubordination
• Was the employee
actually given an order or
directive?

• Was the person who

gave the order authorized
to do so?

• Did the employee

understand that an order
was given?
 Elements of Behavior Problems
and Insubordination
• Was a deadline set for
compliance and was the
time limit reasonable?

• Was it reasonable for the

employee to expect
penalty for failure of
compliance?

• Was there a clear refusal

to carry out the order?
 Decision for Discipline:
Before issuing a Notice of Discipline, Human
Resources must:

• Decide if allegations are seriousness enough

to warrant discipline

• Conduct a thorough investigation of the

incidents

• Interview all individuals with knowledge of an

event prior to interviewing target

• Review any written policies, guidelines, etc.

 Decision for Discipline:
Before issuing a Notice of Discipline, Human
Resources must:
• Schedule an ‘interrogation’ as defined by
CBA with target individual and direct
employee to attend with right to
representation

• Provide and read target employee his/her

rights under the CBA

• Interrogate (interview) the target individual

• Once the interrogation is concluded,

decide if discipline is warranted and what
an appropriate penalty would be

• Issue Notice of Discipline

 Discipline:
Arbitration Standards
• Was there a rule forbidding the alleged
misconduct?
– Did the employer communicate the work
rules to the employee?

• Was the rule reasonable?

– Identify legitimate justification for
insubordination if possible?
 Discipline:
Arbitration Standards, cont’d.
• Did the employee violate the rule?
– Evaluate the quantity and credibility of the
employer’s evidence.

• What constitutes an appropriate

penalty?
– Apply standards of progressive discipline
when assessing penalties.
– Encourage the employee to correct
inappropriate or unacceptable behavior by
means of support through management
and/or issuing an Employee Assistance
Program if needed.
 Considerations for Appropriate
Penalty

• Seriousness of problem or infraction

• The duration of this and/or other problems

• The frequency and nature of the problem

• Consistency in the supervision of employees

• Extenuating factors related to the problem

 Considerations for Appropriate
Penalty
• The employee’s knowledge of the
rules

• The history of the organization’s

discipline practices

• Implications for other employees

• Management banking
 Discipline:
Procedure
• Interrogate employee

• Issue a Notice of Discipline containing proposed penalty

• Employee has the right to grieve

– Step 1: Human Resources
– Step 2: SUNY Employee Relations
– Arbitration and/or Settlement

• Upon settlement or decision, the penalty can then be

implemented
 Discipline:
Common Outcomes
• Written Reprimand
– Permanent written record in personnel file

• Monetary Fine

• Temporary Reassignment
– Change of responsibility and job title

• Suspension without pay

– Assault, theft, endangering others, antisocial
behavior

• Resignation/Termination
– An employee guilty of misconduct or incompetence