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AMET UNIVERSITY

HUMAN RESOURCE MANAGEMENT


(LECTURE NOTES OF DR. B. MADHAVAN)

HUMAN RESOURCES PLANNING or STRATEGIC PROCESS OF HRP


Also called Man Power Planning )
Dale S. Beach: HRP is a process of determining and assuring the organization that the
organization will have adequate number of qualified persons available at the right time,
performing the jobs that meet the requirements of the organization and providing satisfaction to
individuals concerned.
Coleman: HRP is the process of determining the manpower requirements and the means of
meeting these requirements in order to carry out the integrated plan of the organization.
Dale Yoder: He emphasizes that HRP comprises of four aspects
1) determining the requirements
2) assured supply of proper people
3) their training and development
4) how well the organization utilizes them
Strategic steps in HRP

Ascertain the objectives of HRP the HRP objectives should aim at both quantity and
quality aspects -- The objectives should aim at the satisfaction of the organization and of the
individual. The objectives should cover both short term and long term requirements and
should form integral part of overall company objectives. The objectives should also indicate
a clear policy regarding compensation (salary) matters.
Assessing existing inventory: If it is a running organization, this step becomes important.
The Human Resources Manager should gather full data regarding the availability of existing
people, skill-wise, qualification-wise, designation-wise, age-wise, grade-wise, etc.
Demand forecast
The most important factor is JA & JD also work study, work sampling and workload
measurements
Establish a base for manpower projections is it volume of production volume of
expected sales, etc.
Productivity of the people
This sum total has to be balanced against machine availability
Provide cushions for the effects of learning curve (means people work slower in the
beginning of a project and pick up speed and expertise as they go along)
Provide for shifts/leave and absenteeism
Provide a percentage for manpower wastage like resignation, death etc.
Provide for controllable variables like machine capacity and be prepared for non
controllable variables (government policy)
Keep reserve for expansion and growth
Make trend projections or any other technique for unpredictable changes in manpower
Keep provisions for promotions and transfers

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It is a continuous and dynamic job

Time horizon Any good organization must have a short term and long term plan. Short
term means about two years consider factors like machine capacity, changeover from a
closing project to a new project etc. Long term means five years and more consider factors
like change in investments/capital, change in technology, general economic prosperity of the
country, change in market, etc.
Forecast of supply
Internal Supply Factors: Like promotions and transfers within the organization. They do not
add to the numbers also called quality additions.
External Supply Factors: (Quantity additions)
the population factors
present employment trends
availability of educational training institutions
vocational guidance institutions
availability of part time labour
competition from nearby industries
availability of infrastructure like roads, railway stations, airports, schools and houses
law and order
willingness of labour to move to different destinations
resistance to outside labour
law and role of government
social security measures (ESI, PF, etc.)
Actual Implementation
this is the physical process of bringing the people in. It involves stages like
advertisements, recruitment, selection, placement, etc.
this should be linked with compensation plans (salary)
the time lag between advertisement and actual positioning of candidates should be taken
into account
wastage should also be restored
Periodical review and course correction
Performance appraisal
Merit rating Incentives
Improvement of workmens performance Through Training

Some Advanced Strategic Issues in HRP


1) Succession Planning
2) Career Grooming or Executive Grooming
3)Wastages Management
4) Attrition management
5) Job Enrichment,
6) Job Enlargement
Succession Planning:
Any good Human Resources department must compute the number of people who are going to
leave the services in the next few years. This information is tabulated skill wise, grade wise, etc.
Skill wise how many fitters, welders, etc.
Grade wise how many junior managers and senior executives
The Human Resources department must plan to fill up those vacancies which are going to fall
vacant. The action starts much before the wastage would take place. The new person (called
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replacement) should be positioned at least a few months before the existing incumbent will go
away, so that the work will continue smoothly.

Career Grooming or Executive Grooming:

This is particularly relevant for top positions. The Human Resources manager should identify a
few very bright officers who are good enough for the top positions in the organization. Such
people are groomed in many ways take over the top management in due course of time.
exposure to different projects run by the company
planned job rotations, to give knowledge in various functional areas
frequent interaction with the top management including attending the board meetings
project such officers to customers, suppliers and even collaborators
give them all possible training, including training abroad
identify them publicly at suitable meetings, occasions, etc. as the next generation
management.
Executive grooming has 3 major objectives
to groom bright officers
to fill top key positions of the company from officers within
to safeguard bright officers from going away to competitors
Wastages Management (Turnover & attrition are also related concepts)
Wastage refer to reduction in number. There are known or predictable wastage such as
superannuating or retirement or termination at the end of contract period.
The Human Resources department must carefully study these figures for the past period and
make trend projections for the future. This will be helpful for succession planning.
Some other wastage are partially predictable like retirement on health grounds (medical
terminations) and voluntary retirements (a person is allowed to go with complete retirement
benefits much before the age of 58 60).
Some other wastage like death and resignations, dismissals, jumping the bond are totally
unpredictable. It will be difficult to establish trend projections. However, a ratio could be built
between predictable and unpredictable wastage and to be applied in manpower calculations.
When a recruitment and selection takes place, a good Human Resources manager should recruit a
few persons extra to offset the effect of wastage.
Turn over: - Turn over is a part of Human resources planning. It refers to the rate at which
employees are leaving the organization. Its modern term is Attrition; this is calculated as a
proportion of existing total strength or with reference to the people who joined as new entrants. It
is 2 ratios. One is = People left/people recruited in that batch. Another ratio is = People left in a
year / Total Strength of the organization.
Normally calculated with reference to a year or with reference to a selection lot. The higher the
turn over rate, the worse is the HR management. Turnover Ratio helps the management
Attrition Management
When a large number of people keep going out steadily, that too very quickly, either in a dept. or
in the whole Orgn. ( eg. Software companies) it is attrition. The Hr manager must study the
causes and take suitable action.

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Job Enlargement ( Part of job design)


Also known as horizontal integration / expansion of jobs. Variety is introduced in a persons job
by adding a few more simple tasks at the same level. For eg. A foreman who keeps on operating
the hammer may get bored very fast. Therefore give a few additional tasks like simple
maintenance of the forge, operating the nearby furnace, filing the records / dockets, writing up the
parts-card for moving the component to the next stage, physically moving the components to the
next bay etc.
1. Increases the variety in operations
2. Reduces monotony and boredom
3. He can do a few simple extra jobs without the risk of spoiling the work or doing a high
content job without proper training etc.
4. Better relaxation on the job, without involving higher responsibility.
Job Enrichment ( Part of job design)
Also known as vertical integration / expansion of job. It is a good tool of motivation. Job
enrichment involves increasing a personal degree of responsibility or quality of work, such as
planning, organising, leading, etc. Some extra aspects are added to his present job, which involve
higher skill, higher responsibility etc. like a production man asked to do customer co-ordination
also, or ask him to co-ordinate with other work groups etc.
1. In addition to reducing boredom, this is a great motivation tools.
2. Prepares the person to take up promoted posts with higher responsibility by giving him
exposure now.
3. Good method of in the job training.
4. Good for development of the individual.
5. Person with multi-skills and multi-role capabilities are allowed to grow in the
organisation
6. Quality of work life improves

Importance of Human resources planning:


Human resources Planning is a fundamental exercise. Slippages (mistakes) in HRP are
costly and take long time to rectify
HRP is required to make optimum use of manpower
To balance machine availability against MP
Plan for promotions and transfer
Plans for contingencies both expected and unexpected
The organization can focus on short term requirements and develop proper orientation for the
long term
HRP is a good tool to evaluate MP matters. In general and pro-activity in particular
HRP ensure right man for the right job
The value of any Human Resources department depends on how well the HRP has been done
HRP is helpful in detecting many problems of the organization
HRP is helpful to the organization, to the industry and the country as a whole
1. To find out the success of any recruitment effort.
2. The soundness of wage and salary administration (Compensation)
3. To detect other organization problems
4. To find out in which trade maximum losses take place
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5. For manpower planning in those areas.


Human Resource Audit
The function of Human resource audit is to identify: 1. The various activities of Human resource planning
2. To find out standards / establish standards for measuring the effectiveness of the above
activities
3. To carry out the actual measurement
4. Human resource planning has many elements like policy, demand forecasts, supply
forecasts, the physical positioning of the people, quality and quantity factors.
J.A / J.D / J.S
Human resources Planning is an important function of HRD. It rests on three pillars job
analysis, job description and job specification.
Jucius, refers to Job Analysis as process of gathering information about the operations, duties
etc. about a job and the organizational aspects of a job.
Job Description: Flippo: The immediate product of job analysis is job description.
What is collected in Job Analysis?

Job identification job title, code name, alternate titles, etc.


Operations involved what a typical worker does, the tasks of involved
How the job is actually performed? -- Time and motion study, sequence of movements for
the material or the man
Significant characteristics of the job location, physical setting, special hazards and
discomforts
Materials used both solid and liquid substances
Machinery/tools/equipment used
Physical and mental attributes required
The content of responsibility
Requirement to work in shifts
Details of supervision

Job Description:
Generally, the purpose of compiling JA is to make JD. JD adds some features to job analysis like
organizational aspects where the job is located in the organization
relationship between the previous and next jobs. Example: How the material moves from
previous job to this job and to the next job
emphasis on reporting relationships and responsibility aspects
Difference between JA and JD:
JA is in work sheets form. JD is in summary form.
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JA is the process of collecting information. JD is the process of writing it.


Maurice Cummins has summarised both JA and JD as a statement of the purpose, scope, duties
and responsibilities of a particular job.
Job specification:
Definition by Flippo It is a statement of minimum acceptable human qualities necessary for the
proper performance of the job. Thus it is referring to the characteristics of the job holder and not
the job.
physical attributes like physique, strength, height, ability to keep awake at night
qualification, age and experience aspects
mental attributes like analytical ability, creativity, concentration etc.
language skills
basic perception abilities voice, vision, hearing etc.
emotional traits, like aggression, boldness
social characteristics like leadership abilities, interpersonal skills, communication, etc.
Methods of doing JA:
Questionnaire: It is simple and easy to handle. Normally suited for routine jobs. Normally
handled by mail.
Check List: This also is filled by the incumbent (worker). It is easier for him to fill up check list
than questionnaire. But a lot of back ground work will have to be done by the job analyst.
Interview: Writing is done by the analyst but not the incumbent of the job. This reveals many
factors which could be missed in other techniques. Therefore, this is a good method to
supplement all other methods.
Observation: The oldest method from the days of scientific management movement. Best
suited for short cycle operations with predictable activities. Here the job analyst stands near the
operator and writes his observations.
Self recording diary: The worker himself writes the job analysis is partially structured some
portions left unstructured. The recording is done over a long period. Scrutinized by job analyst
at a convenient place and time.
Participation technique: The job analyst does the work with his own hands along with the regular
workmen and records.
Conference method: Here the supervisor also gets involved. All the analysis is done along with
him.
Critical incident method: This is not a normal analysis. Here the focus is on exceptional factors.
This is very useful to analyse jobs which have lot of routine elements built around a few critical
elements.
Uses or importance of JD, JA & JS:
Complete knowledge of the jobs
Relationship between various jobs
Good for detecting organizational ills like structural problems, reporting relationships,
etc.
Basic document for recruitment, selection and placement
For promotion and transfers
For training and development
For systems and procedure improvements
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They serve as measurements for assessing performance in all areas like production,
quality, cost, etc.
Basic document for counselling
Helps in measuring job satisfaction and improving it
These documents lead to job evaluation which is the corner stone in wage salary
administration
For health and safety aspects
For job redesign and reengineering.
Some minus points (Demerits):

It is a very time consuming and expensive job


When each job role is specified, the workers would like to stick to it. They would refuse to
do even minor variations. It is very difficult for the management to use a worker in more
than one trade or skill
This reduces the worker to the level of machines by laying down very specific operations,
movements, duties, etc.
It becomes a legal document for the workers to argue in collective bargaining
These documents can be accurate only for the workmen jobs very defective if applied to
managerial positions.
RECRUITMENT, SELECTION, PLACEMENT, INDUCTION, PROMOTION AND
TRANSFERS AND TRAINING & DEVELOPMENT

RECRUITMENT
According to Dr. Bhagoliwal it is the process of attracting potential employees to the company.
It is the process of searching prospective employees and stimulating them to join the
organization. It is also defined as a series of steps taken to identify the job seeker and bringing
him in contact with the company. It involves stages such as:
Stages in recruitment:
From HRP identify vacancies
Identify job details and specifications
Identify sources of recruitment or sources of possible manpower both internal and
external sources
Notify in the press and such other avenues
Send application forms to interested candidates
Receive application forms, scrutinize them and make broad waste summaries of
applicants.
Internal sources of recruitment: Promotions, transfers, job rotations. These do not add up to
the total Human Resources already available in the organization. But it has the advantage of
motivating the existing employees, improving their loyalty with the organization and as also the
organization knows the candidate very well.
External sources: (a) Newspaper advertisement (b) Advertisement in Professional magazines
(c) Employment Exchanges (d) Campus recruitment (e) Other field trips (f) Competitors (g)
Part time manpower (h) Contract manpower (I) Unions (j) Recommendations by existing
employees (k) Unsolicited applications or stray recommendations or contacts (l) Professional
placement agencies (m) Professional associations.
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An employer should constantly evaluate the sources of his recruitment with regard to their
effectiveness such as (1) what is the yield - how many candidates it has successfully offered, in
terms of quantity and quality (2) time lag - how much time it takes to offer a good candidate (3)
cost aspects.
SELECTION
Dale Yoder the process by which candidates for employment are divided into 2 categories those who will be offered employment and those who will not. Thus the selection process is a
Negative process. Selection means choosing a few out of the many candidates available. The
candidates are subjected to a series of elimination processes and the final ones are chosen; stages
in selection
Scrutinizing the application
Calling the eligible candidates for test/interview
Constitution of Boards for test/interview
Administering the test
Administering the interview
Medical/Physical examination
Negotiating the salary aspects
Checking references
Issue of Appointment order
Steps in selection:

make a detailed scrutiny of eligible candidates


fix up suitable tests and interviews
fix proper tools and standards and experts for conducting test interviews
call the candidates
administer the tests in proper atmosphere
interpret the test results and screen
administer the interview and select elicit all clarification during interview
fix up compensation package
verify character and antecedents (previous employers reports)
medical examination
issue the appointment order

How to measure effectiveness of selection process:After the selection is over, find out whether you got the required no. of people. Over a period
of years if the organization has not got the required no. of people consistently, the audit
should focus on further analysis like mistakes in specification/notification, unsatisfactory
salary, terms and conditions not clear etc., If the organization has not got the right quality further analyze the job specification, the quality of testing and interviewing etc., another area
of audit is the time lag between notification and actual position of the candidates. The time
lag should be a few weeks. Otherwise, the organization should analyze the causes and take
action. There are many areas in which each organization must develop its own standards and
measures the effectiveness of their manpower planning.
PLACEMENT
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The process of actually fitting the appointed candidate to the job. The process of positioning the
candidate in the actual position. This is not a big issue if there are few vacancies only. But if the
organization is large and many vacancies have to be filled, the Human Resources department will
have to place the candidates with due consideration to many special factors such as (a) the
candidates preference for the station in which to work (b) Financial considerations like advance
increments (c) Administrative aspects like independent charge,
designation, reporting
relationship, etc.
INDUCTION ( DEATILED NOTES)
Induction is the process by which a newly appointed candidate is accustomed or acclimatized
with the professional and social environment of the job. The organization (Department Head)
receives the new employee on the first day and brief him about the organization, his department,
his work, the work practices, etc. He is then introduced to his colleagues in the department. For
a few days or weeks, he is not expected to work on the job but expected to familiarize himself
with the Company, his work, his future, his department and the culture and traditions of the
company. This program serves two purposes (a) the individual gets organized inputs about the
company. He is not asked to jump into work (b) If the correct first impressions are created, he
becomes loyal to the organization.
Induction Programme
A systematic program organized by the employer for familiarizing a new entrant with a job
with the organisation and the connected social aspects.
Objectives of Induction Programme
1. To have a structured method / procedure for welcoming a newly joining individual and giving
him a right orientation about the organisation and his role in the organisation.
2. To help him get into technical, business, inter-personal and sociological background of the job.
3. To help synchronize his objectives and organisational objectives.
4. Not to allow to scope for a fresh appointed to get ideas from an existing disgruntled
(dissatisfied) employee of the organisation.
PROCEDURE FOR INDUCTION PROGRAMME
There are Three Basic Stages - Probably 4 Stages.
1st Stage:

Introductory Orientation by the PRO or Training department.

2nd Stage:

Specific Orientation by immediate boss.

3rd Stage:

Further Orientation by Human Resources Department.

4th Stage:

Follow -up orientation if there is need.

Introductory Orientation:

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Generally one day duration, done by Pr Department or training department. First welcome
by Proper Executives. Candidate is told by trainee manager or PR manager (with the help of
documentary). The companys history and evolution its product, the locations, Market Standing,
Organisational chart, locations and layout of the plant technologies employed.

PROMOTION
According to Spriegel A Promotion is the movement of an employee to a job that pays more
money or that enjoys some preferred status. Pigors and Myers the advancement of an
employee to a better job, in terms of more responsibility, status and pay. If the promotion
involves only higher responsibilities without higher pay, then it is known as Dry Promotion.
If he goes up the hierarchy it is known as Vertical Promotion. If he moves within the same
level it is horizontal promotion.
Please see text book for a detailed discussion on Promotion by Seniority Vs Merit
General rules regarding good promotion scheme:

The organization has to have a proper promotion policy and publicize it well
The policy should cater to different segments/areas of people like there should be a
separate policy for senior officers, junior officers, supervisors, highly skilled/unskilled
workmen, etc.
Whether the promotion will be effected based on arising of clear vacancies like death or
retirement of the existing incumbent or promotions will be given without reference to
vacancies
Whether the promotions will be awarded as and when vacancies arise or only once a year
say, June of every year. The latter idea is better and is convenient to operate
How much vacancies will be filled by open recruitment (outside candidates) and how
much will go by promotion?
The organization has to decide whether it would recruit Human Resources at the lowest
level and keep on promoting them as and when they grow up. For example, many good
organization recruit officers only at junior levels and slowly promote them to senior
levels. They do not recruit candidates at senior levels from the open market, except
under exceptional circumstances
What is the minimum time gap for promotion from one cadre to another? For example a
company may stipulate nobody will be eligible for promotion unless he completes 4 years
in the existing grade (for example)
Zone of promotion - for one vacancy how many people will be considered. Some
companies have a rule that for one vacancy only 6 candidates will be called/considered
What is the line of promotion - for each trade/category of Human Resources? For
example, it should be made clear that a junior Human Resources officer may reach only
Director of Human Resources position or something less than that - throughout his career
The qualification/eligibility criteria should be made clear for each post and should be
strictly adhered to
Legal position on Promotion - (a) No employee can claim promotion as a matter of right.
He cant go to court claiming Promotion. (b) But he can invoke legal remedy if he has
been denied promotion by violating the managements own promotion policy.

Probation: Whenever a person is selected from the open market, he is put on probation for a
period of six months or 1 year. This is recorded in the appointment order. During this period his
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performance is closely observed and he is intimated and at the end of the probation period, he is
issued with a letter of confirmation (if his performance is satisfactory).
Most companies have a policy of not insisting on notice period for relieving a probationer. That
means, the appointment could be terminated from either side without giving any notice or reason.
There are some companies which have a policy of keeping even promoted people on probation.
If performance is unsatisfactory, he is reverted to the earlier post.
TRANSFER/ JOB ROTATAION
Michael Jucius Transfer refers to changes in job in which pay, status and job conditions of the
new job are approximately same as the old.
Type of Transfers: (a) Production Transfers - as per requirements of the job (b) Replacement
transfers - To fill in wastages like superannuation or resignation of existing incumbents (c)
Versatility transfers - To give the employee greater experience and exposure by transferring him
to different areas (d) Remedial transfers - Punishment transfers (e) Human Resources transfers Based on employees request
How to make a good transfer scheme:
o The organization should have transfer policy applicable to various levels
o The policies should be well publicized - and implemented without exceptions
o Have special examination of employees difficulties if the transfer involves movement
out of station
o The criteria for transfer should be clear
o The courts will generally not interfere with transfers as long as the conditions of the new
job are same and there is no victimization
SEPARATION
There are many different ways in which the employer-employee relationship may get terminated.
These are the following ways:
Dismissal - for misconduct like theft, assault, etc. - this is done after proper enquiry
Resignation
Super annuation - also called retirement - after reaching a certain age say 58 or 60
Medical termination - Due to reasons of illness, etc.
Completion of contract - If someone is taken for a contract period say 2 or 3 years, at the
end of the contract period his services get separated
Voluntary Retirement - Some organizations have this scheme - persons who have
completed 20 years of service and above 45 years of age for example may leave on
voluntary retirement. They will be given some extra lumpsum money over and above the
usual benefits which is not taxable. This is the special feature of this scheme.
Retrenchment - This is due to unforeseen circumstances - the employer suddenly finds he
has more people than necessary - so he retrenches the junior most people giving them
months wages for every completed year of service.
Lay off - due to power shortage, raw material shortage, accumulation of stocks, etc., the
employer has a temporary inability to provide employment to all. So he lays off some of
the people
Death
Discharge - The particular employees services are just no longer required
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VOLUNTARY RETIREMENT
Objectives:
- To give an employee, who is advanced in age and who has served for a long period - a
chance for retiring much ahead of his retirement date with good terminal benefits.
- If the organisation wants to reduce manpower for business reasons or for weeding out
inefficient employees voluntary retirement scheme (VRS) is introduced.
- It is also called golden hand shake scheme.
Terms and Conditions of VRS:
1. Employee should put in long service (eg. 20 yrs of service).
2. He should be advanced in age (eg. 50 yrs old).
3. Once in a year the employer (Human Resources Manager) will call for application under VRS.
4. The application will be scrutinized by par and the final decision to accept an application rests
with the
management.
5. The employer weeds out generally inefficient employees or surplus employees.
6. Generally such vacancies are not filled up by promotion or otherwise till business improves.
7. The terminal benefits payable under VRS are exempt from Income Tax to a large extent. So it
is better
than resignation.
8. The scale of benefits differs from one organisation to another but generally the VRS employees
get:
a. His gratuity for period already served.
b. Ex-gratia payment towards VRS (for past service) - generally another amount equivalent
to gratuity.
c. Payment for the period yet to be served. The general trend is one month salary for every
year of service still left.
d. Other benefits applicable.

PERFORMANCE APPRAISAL
It is a systematic evaluation of the performance of each employee and officer in an organization
as written up by his superior. It is filled in a written format once in an year (in some companies
may be once in 6 months generally once in a quarter for probationers) and filed in a PAR
dossier.
The dossier gives a birds eye view of a persons performance over the years.
Uses or Importance of PAR system:
There is no real alternative. In the presence of written record only oral assessment will
prevail. This will lead to chaos.

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It is also a legal document. If there is a dispute about a persons performance, the courts may
call for PAR dossier
For determining incentives and wage increases
For promotions
For transfers and job rotations
For determining training needs
For executive grooming
To determine the effectiveness of the companys recruitment over the years
To get comprehensive view of a departments performance
To detect organization ills
Gives feedback to a person about his own performance as judged by his superiors
Pitfalls (or) Problems (mistakes while writing PAR)
-

Excessive leniency or strictness amongst the raters some raters think that they should rate
their subordinates very strictly (not to exceed 4 out of a rating scale of 6) whereas some other
bosses do not mind giving six to a large no. of subordinates.

Differing standards amongst raters. For example, against the trait attendance one boss may
take a subordinate as unsatisfactory for 5 days absence in a year whereas another may rate the
same situation as very good.

Halo effect: means if a subordinate is good at one thing (public speaking) the boss credits him
as being good at many other things also (like performance on the job).

Effect of last few jobs: If the performance appraisal is written up in the month of March, the
bosses may be unduly influenced by the jobs performed by the subordinates in the month of
January and February. He may not remember his performance in previous June or July.

Central Tendency: If a boss rates a subordinate as exceptional, he may be called up by the top
management to explain (out of a rating scale of 1 to 9 if he gives 8). On the other hand if he
rates the subordinate at one or two, the subordinate may lose his promotions and pick up
quarrel with the boss. Therefore, many bosses give them the mid point ratings of 5 or 6, to
avoid trouble.

Playing God: People act in funny ways when they sit in judgement over another persons
future. Most of them develop kindly or godly attitudes and try to give good ratings. Some of
them resort to victimization. In any case, it is not an assessment of actual performance of the
subordinate.

Personal Likes and Dislikes: The personal relationship between the boss and subordinate
influences the appraisal ratings.
Assess traits or performance: Bosses do not know whether they should assess the subordinate
on the performance (volume of production, quality, rejections, number of tasks completed,
delivery slippages) or should then assess the subordinate based on traits like honesty, cooperation, effectiveness, etc.

Alignment of weakness and strengths: Sometimes the subordinate may be strong in those
areas where the superior is weak. He supplements and helps the superior in his weak areas.
In such cases, the subordinates get unduly high ratings.

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General Problem of workload: Top executives find it difficult to find time for writing PAR.
Besides Engineers do have a very general hesitation for paperwork.

How to remedy the defects (or) pitfalls?


Good policy framework and it should be well pursued.
Constant training to raters
Give proper guidelines about what is poor, average, above average etc. on each item
factor of appraisal. Example: In attendance 10 days absence after exhausting leave is
considered unsatisfactory. But only two days absence is considered average and no
absence is good etc. This will avoid the problem of differing standards in between raters
Help matrix: Good organizations generally give guidelines about various aspects of the
appraisal this is printed along with the appraisal form
Review by the next higher one level or two levels of management this will avoid
personal bias of the superiors.
Maintain performance diaries on a monthly basis to reduce problems of getting
influenced by the last few jobs done.
Have an overall moderation at company level the Human Resources manager along
with top management reviews PAR, department by department. This will reduce
problems of uniform overrating in some departments and underrating in other
departments.
Promote openness and reduce the element of secrecy.
Adopt MBO method of evaluation. (Explain)
Methods of PAR system (Techniques):
1) Ranking Method: Here the rater compares the performance of one rater against all others and
places him in a simple rank order. This method is the simplest to operate but highly
subjective. The tendency is not to compare performance but people as a whole.
2) Paired comparison method: This is also a ranking method. The rater compares one ratee
against all other members, one by one in a limited group (in the same dept.). The final rating
of the person depends on how many times he was judged better than others.
3) Checklist method: Here the superior has to rate the subordinate by ticking a statement in the
checklist ie., for each aspect of the ratees performance a set of standard phrases (or)
sentences are given. The rater must tick the sentence or phrase which is most appropriate.
The system is easy to operate because the rater has to put only tick marks. But it is extremely
difficult to construct a good checklist sometimes it may take a few years to perfect a checklist
suitable to the organization.
4) Forced Choice Method: It is an improvement over checklist. Here the phrases or statements
are assembled in groups some of them favourable some of them unfavourable. The rater
has to indicate his choice from within the group of statements. In this method the Human
Resources department does the scoring (conversion of tick marks into marks) and therefore,
raters bias reduce.
5) Field review method: After getting the PARs the HRD meets the raters, discusses with them
and arrives at the final ratings. In this method, variations between departments could be
reduced.

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6) Critical Incident method: A list of factors or requirements which are critical to the job are
first arrived at. The rater is asked to rate the subordinate with reference to these factors. A
group of experts will later on assign weightage and convert them into final ratings.
7) Rating scale method: Most popular method. This technique is used in combination with
every other method. After rating the subordinates by using many different techniques, finally
the rater is asked to indicate a total opinion by using this technique. Rating scale is used in
2 versions. One is using numbers ranging from 1 6 for example and the other is using
phrases like exceptional, very good, good, average, below average, etc.
8) Assessment center: The HRD meets all related people (not only the immediate superior) and
collects ratings about a particular ratee. Example, in the case of a production manager,
opinions are collected from his own boss, the quality managers, design managers, the
production planning people, etc. Then a final rating is arrived at.
9) Essay appraisal: Superior is asked to write in freestyle. The report is likely to be very
spontaneous and natural but comparisons between two ratees become very difficult.
10) Potential appraisal: A PAR system deals only with past performance. But many good
organizations want to know the potential of a candidate for serving in a higher position.
Therefore, this technique tries to measure his probable performance on the post to which he is
likely to be promoted. Assessment centere method is ideally suited for this purpose.
11) Confidential Report System: The term is used when the PAR system of an organization is
totally secretive a subordinate never comes to know what is his rating. Ideally each
organization should determine how much of openness can be in built on their PAR system.
12) M.B.O Refer to detailed notes.
13) Balanced Score Card - refer to book
14) Behaviourally Anchored Rating Scales
Behaviourally anchored rating scales (BARS) is a technique designed to identify the the
critical areas of performance for a job, and to develop standards describing- more effective
and less effective job behaviour, with reference to each critical area and compare the actual
performance behaviour of the assessee against the standards.
Behaviourally Anchored Rating Scale (BARS) combines elements of the traditional rating scales
and critical incident method. Using BARS, job behaviours are described more objectively. This
method employs experts who are familiar with a particular job to identify its major critical areas.
They are asked to rank and validate specific behaviour for each of the areas.
15) 360 Degree Appraisal And Feedback
The 360 degree appraisal involves rating of an employee or manager by everyone above,
alongside and below him. Besides the employee himself, his superior, subordinates and peers play an
important role in the appraisal. Structured questionnaires are used to collect responses about the
employee from his superiors, peers and subordinates. Several parameters relating to performance and
behaviour are used in the questionnaires. Each manager is assessed by a minimum of fifteen
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colleagues, at least two of them being his bosses, four of them peers, and six of them subordinates.
Even the important customers or clients of the firm may also be requested to give their assessment of
the concerned employees.
Post-Apparaisal Interview
(NOTE : These points are also applicable to the topic of
COUNSELLING )

PERFORMANCE

The performance appraisal of an employee/ officer is generally followed up by an


interview, which serves as a feedback for him. The main objectives of this
interview are:
(i)
To bring in more clarity in the re of an employee.
(ii) To increase the supervisors awareness of all those factors, which facilitate or
retard the achievement of desired goals by the employee.
(iii) To provide employee with an opportunity to release his tensions and share his
anxieties.
(iv) To provide employee with an opportunity to realise his strengths, weakness,
achievements and failures so that he gets deeper insight into his behaviour.
(v) To sharpen the behavioural skills of both the supervisor and the employee.
(vi) To encourage employee to set goals for further development.
Pre- Requisites Of Performance Counselling
1.
2.
3.
4.
5.

Individuals desire to improve.


Continuous dialogue.
Genuine interest of the superior in his subordinates development.
Mutual participation.
Focus on work-related behaviour.

Ground Rules For Giving Feedback ( Performance Counselling)


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Start with the positives.


Do your homework.
Be objective in your criticism.
Be prompt in giving feedback.
Make sure you set aside time for feedback.
Be specific and data-based.
Ask the subordinate to assess himself before you assess him.
Link feedback with action.
Do not overburden the subordinate with feedback.
Develop trust by bring transparent, genuine, supportive and tolerant of the failings of
your subordinates.
Listen to his problems also
Do not emphasise on non-remediable deficiencies
Talk about job, not about the person
Finalise specific action plans for overcoming the deficiencies/ problems, for example, job
rotation to another section

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