LABOUR TURNOVER

The sequence of employees’ movement in and out of an organization is labour turnover. Labour
turnover is identifying how often employees leaves the business organizations or rate at which
people leave.

𝑁𝑜 𝑜𝑓 𝑙𝑒𝑎𝑣𝑒𝑟𝑠 𝑜𝑣𝑒𝑟 𝑎 𝑝𝑒𝑟𝑖𝑜𝑑 𝑜𝑓 𝑡𝑖𝑚𝑒 100

Labour turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑠𝑎𝑚𝑒 𝑠𝑝𝑒𝑐𝑖𝑓𝑖𝑐 𝑝𝑒𝑟𝑖𝑜𝑑 x 1

WHY DO PEOPLE LEAVE ORGANIZATIONS

 Pay issue
 Career movement or better prospects
 Job security
 Better opportunities
 Inability to cope with job
 Better work conditions
 Poor relationships with managers or team leaders.
 Poor relationship with colleagues
 Bullying or harassment
 Personal issues

PROBLEMS ASSOCIATED WITH EMPLOYEE TURNOVER

 Cost of recruitment
 Cost of placement and induction
 Cost of training in required skills or assignment
 Alteration in administration process
 Opportunity cost of time to run recruitment all over again
 Loss of time before new employees learn the process
 Bad corporate image.

RETENTION

Retention refers to processes put in place to keep employees continually endeared to the
organization.

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HOW TO ENSURE RETENTION

 Performance recognition
 Reward based on industrial environment
 Development measures
 Improved recruitment processes
 Redefining organizational image
 Exist interview where necessary (fair hearing)

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 TRAINING

It has increasingly become vital to the success of modern Organization. Training plays a central
role in nurturing and strengthening organization's competencies and in this way has become part
of the backbone of strategy implementation.

It is a term to seek long term change in employees skill, knowledge, attitude and behaviour in
order to improve work Performance. Training is put in place as a process that add value to
employees.

Aronoff (1971) observes Training as a process that fosters initiative and creativity of employees
while helping to prevent manpower obsolescence which could result from age, attitude and or
inability of employees to adapt to new technological changes.

Obisi (2000) said training is a process through which skills, talent and knowledge of an
employee is enhanced.

Scott (1977) agrees that training is the corner stone of sound management for it makes
employees more effective and productive.

According to Mannoria 1995, training is a practical and vital necessity because it enables
employees to rise within the Organization and increase their market value earnings power and
job security. He believed that training helps to mold employees attitude and helps them to
contribute meaningfully to the Organization.

Fajana defined training as the process that involves skill development and learning concepts,
rules or attitude in order to increase effectiveness on a particular job.

Training is one of the ways to bring about change and development in an organization and in
individuals. It is also one of the ways to maintain smooth running of an organization. A great
part is played by Training in ensuring that employees’ have the necessary knowledge, attitude
and skills to carry out efficiently and effectively their work under present system of operation.
The present system is dynamic.

Teaching employees new skills that prepare them for actual or anticipated change will itself
enable the change to be brought about more easily.

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DEVELOPMENT

Just as Training helps to ensure better skill usage and capacity building, development also helps
to ensure managerial ability, problem solving, and continuity in the management processes of
own Organization. Where training is needed for other employees, development building is
targeted at the management staff members to improve their capacity also.

UNDERSTANDING TRAINING AND DEVELOPMENT.

According to Obisi (1996) the concept of training and development are used interchangeably.
Training is for the job purpose, while development goes beyond that specific development covers
not only improved job Performance but it brings growth of personality.

Campbell (1971) states that training refers only to instruction in technical and mechanical
operations while development refers to philosophical and theoretical educational concept.

Training is designed for non-managers while development involves managerial personnel and
typically designed for a short term started purpose such as the operational of some pieces of
machinery while developing involves a broader education for long term purpose.

THREE MAJOR LINES OF DIFFERENCES BETWEEN TRAINING AND

DEVELOPMENT.

 Time line: Training is for shorter period, while development is for a longer term.
 Purpose: Training is for specific purpose or job related purpose while development is for
general purpose.
 Audience targeted: Training is designed for non-managers while development involves
managerial personnel.

PURPOSE OR RELEVANCE OF TRAINING AND DEVELOPMENT.

 It is designed to solving problems.

 To fill gaps In Employees Performance.
 It is to bring about change and enhance Organizational effectiveness.
 It creates pool of readily available and adequate replacement for personnel who may
leave or be promoted

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  Helps to adapt and use advance technology.
 Ensure competitive position and improve employees morale
 Ensure expansion into new programs owing highly motivated team.

BENEFITS OF ORGANIZATION

 Increased productivity
 Reduced employees turnover
 Reduced overheard leading to financial plan.
 Less need for supervision while saving time.
 Increased efficiency.

To THE EMPLOYEES

a. They have a better sense of self worth.

b. They become human capital to organization.
c. Better sense of citizenry in the society.
d. Better share of material gain as there is increased productivity.
e. Self-satisfaction through achievement of personal and company's goal.
f. They develop greater ability to adapt and cope with change.

TRAINING PROCESS DRAWING

Kenney and Reid 1995 provided a clear planned training process which is generally accepted by
many scholars as seen below.

 Identify and define training needs.

 Define the learning required in terms of what skill and knowledge have to be learnt and
what attitude need to be changed.
 Define objectives of training
 Plan training programs to meet the need and objectives by using right combination for
training techniques and location.
 Decide who provide the training method.
 Evaluate training
 Amend and extend training as necessary.

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TYPES OF TRAINING METHOD

A. On the job training.

In this type of method, a new or less experienced employee is given some kind of instructions or
advice from a more experienced employee who may be a supervisor or some kind of a special
instructor.

The success of how much the person can learn depends on how the experienced employees
teaches them. Most of the training includes certain crafts any technical areas or trades etc. And
for guidance as well as support some skilled or semi-skilled workers are kept to observe and help
them.

Advantages of on the job training

i. The job is learnt by the workers in actual conditions and in a physical environment other
than learning the job in artificial conditions. This helps the employees to bring motivation
within them and learn their job well.
ii. This type of training is not very expensive in comparison to other training and it
consumes a less amount of time in learning.
iii. This type of training is under certain supervision of the supervisors to really see whether
or not everything is happening in a proper way as they are keenly interested in the
training program.
iv. Any kind of production is not affected or is not suffered when such a training is adopted.
v. The person or the trainee learns the maximum amount of rules and regulations when they
are learning about the job.
vi. This takes less amount of time when it comes to learning a special skill as a person can
acquire a certain skill even in a short period of time.

Limitations of on the job training

1. This kind of training is mainly disorganized in a big way and things are a times done in a
very haphazard way.
2. At times the person supervising the training may not be ready to willingly give their time
and this may lead to training not taking place in the appropriate way it needs to be carried
out in.

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 3. Sometimes certain experienced trainers may not be available at all times
4. At times when things are not happening in the appropriate way it leads to the trainee
getting a lack of motivation when they are receiving the training.
B. Off the job training
This type of method involves a trainee leaving their work for the time being and they need to
give or devote their entire work time for getting the necessary training required
At this time the person does not contribute to any of the production activities that the company
does in that time. This kind of training is mainly provided or arranged by the company itself or
they may use special institutes for this purpose who provide such kind of training.
Large companies make it a point to provide such training to their employees and have different
departments or institutes in the workplace in comparison to smaller companies who do not
provide such training. The different kind of methods under this training are as follows:
1. Lectures or class room method: In this method, the difference aspects of the ongoing
program are explained by a single individual to the others This is convenient enough as
the facts and details as well as special type of information is provided to the people by
means of a lecture. To make the lecture more interesting and understanding audio as well
as video is added to it to make it more appealing to the people present and a large number
of people are trained at a time to provide more advantages.
2. The conference method: For conveying this type of training, a conference also known as
a meeting is carried out where a certain plan is spoken about to the people and they get
their training and knowledge through it. It explains all the necessary facts as well as
important principles and concepts needed to be known then later on all the knowledge is
known and shared by all the trainees present, so that a solution is found out soon as
different views help in finding the solution soon.
3. Team Discussion or Seminar: In a seminar type method, the trainees present are made
to write papers regarding the topics focused on. After that the papers are lead at a times
and a discussion takes place where all the people or a present, participate in it. Later on
after all the views are discussed then the chairman present will take all the views together
and make a decision At times the material regarding the topic to be discussed may
already be provided to the trainees along with the necessary information so that they are
ready in advance before the actual discussion takes place.

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 4. Programmed instructions: This type of method involves providing the necesssary
knowledge to the trainees in the form of a printed textbook or with printed notes or some
kind of teaching machine. The process of breaking down all the information into different
categories making it meaningful and proper arrangement of it is done at times asking or
presenting certain questions or problems are given to the trainee and certain feedback is
got back by the trainer in that way the person responds back to them.
C. Apprenticeship Training
This method is mainly used in industries and can go on for a long time at times for the duration
of about 4-5 years.
After training is over the worker obtains all the necessary information and then carries on their
work. Knowledge both in the form of practical knowledge while they do their job and theoretical
knowledge from the lectures is obtained by them. It is one of the oldest and most traditional
methods when it comes to training the people of the organization.
Advantages of Apprenticeship Training
1. Stipend which is also known as a fixed amount of salary is received by the trainees to
some extent during this training.
2. Trainees acquire valuable skills which is highly regarded and valuable and demanding in
the market.
3. When talking about the employer, it is a way of obtaining cheap labour with a needed
skilled work force still being maintained.
4. This method helps in reducing cost for labour and production cost.
5. There is ensured loyalty of the employees of the company.

Limitations of Apprenticeship Training

1. The length of the period of the training is very long and at all times the trainees need
regular supervision which can be difficult as the company is at a large scale.
2. This method is unsatisfactory if the standards are rigid.
3. At times if the person or the worker getting this training fails to learn it completely after a
long duration, then they may not be considered for working in the company which may
lead to labour problems.

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 4. This method is very expensive in nature.
D. Vestibule or Training Center Training
A vestibule is a place or passage or also a room situated between the outside door and inside of
the building. So under vestibule type training, the trainers train the workers on certain special
machines in a different location like classrooms and this is known as a 'vestibule school which
the Personnel Department of the firms runs.
The training is provided in certain conditions which are artificial but makes it like real conditions
and is remaining theoretical training is given in the classroom.
Advantages of Vestibule or Training Center Training
1. The person who is training the trainee is a specialist person and has certain level of
specialization in the training to be provided.
2. As the training which is provide is not present when the actual job takes place the trainees
mainly can focus on learning the job.
3. As the instructor or the trainer has no work assigned to them they can provide certain
attention individually to the trainees.
4. The job is learnt by the employees in a short time.
Limitations of Vestibule or Training Center Training
1. As the training is provided in an artificial work environment the workers may not adjust
to certain machines when they are actually doing the job in reality.
2. It is expensive in nature as the same duplicate equipment is needed and small firms
cannot afford to provide such training to their employees.
3. If the demand for workers in the firm is not continuous then at times the vestibule can
stay unused for a lengthy amount of time.
4. If the responsibilities are split then there can be further problems in the organization.
E. Training Via Internship
There is a lot of advantages of getting trained in internship. Internship is practically like working
but not for full term purpose and salary basically is low and they are called stipend. So training
will actually inculcate the skill of time management and will balance between the theory part of
the studies and also practical part of the subject.
The drawbacks behind this idea is that it can only be used for skilled and works more practically
oriented goal instead of just sitting and studying. The time usually depends on people. Some

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wants to keep the contract for 6 months or some wants to keep it for 2 months only. Therefore
the timing also is not frigid, they are flexible.
F. Beginners 1st Level Training
Such training is giving to the individuals who don’t have the advanced level knowledge about
the work. This system actually helps in training such individuals who have not done a full formal
study needed for a position. Such training helps in at least giving a job security instead of no
work at hand.
The individuals are trained and then after successfully completing the period the employer or the
agents will fix them with job which is secured. Workshops, seminars, guest lectures are
conducted for them so that they can acquire adequate knowledge.
G. Training Institute
The training institutes are actually built to give vocational training and etc. so that they can shape
up the ones personality. Basically, when an employer hires individual he thinks that is necessary
to send such training institutes. The training institutes generally provide soft skills, personality
development, IQ level classes etc. so that the person may not only increase by knowledge but
emotionally and mentally strong.
There are many institutes all over the world who give such training to the employees.
H. Role Playing
This is one of the best and effective ways for training employees. It is a form in which a realistic
role will be played by a particular person in an imaginary situation. Here person gets in to the
skin of the role and portrays it creating a realistic environment.
The main advantage of this role playing method is to help develop interpersonal relations and
attitudinal improvisations.

I. Simulation
This is another form of training in which the equipment or things needed will be duplicated to
create a realistic environment. One of the best examples is pilot training, which the trainees will
be given an aircraft like environment so that they get the feel of flying a real aircraft.
This method helps in developing better decision making process for the trainees Though this type
of training method is expensive, but ensures to provide a better understanding of how to perform
the tasks and duties efficiently.

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Similarities of Education and Training
1. Time frame involved or required.
2. Both get certificated but training not all of the time.
3. Both are expected to effect change either cognitively or psychomotively.
4. Both improve employability.
5. Both confers goodwill and productivity profitability.
6. Depending on organization both are issues in policy
7. Learning
8. Information
9. Continual process
10. Both can be evaluated

DIFFERENCES BETWEEN EDUCATION AND TRAINING.

1. Education takes a longer time frame.

2. Immediate applications of learning.
3. The development of skills and behaviour.
4. Direct relationship with the job in terms of
I. Specific occupation predictability
II. Outcome on current needs
III. Orientation and specific task requirements.
5. Future application of present learning.
6. Development of knowledge and attitude.
7. Implied learning for use in unprepared situations.

APPROPRIATENESS OF TRAINING.

Training would be appropriate in am organization when there is

a. A need for specific skill that does not exist in the present workforce.
b. A need for speed skill which is not available in sufficient number.
c. A need for specific standard of skill Performance.
d. A change in the technology, methods or requirement behaviours obsoleting the current
skills.

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INAPPROPRIATENESS OF TRAINING.

a. A situation where the environment cannot use the skills which the learner acquire in
training.
b. A condom where environment will not permit the Performance of the behaviors acquired.
c. Where employees are unmotivated to meet performance standards though capable of
doing so. (e.g. sabotage).
d. Where resources required to complete the training are not in existence of sufficience.

ESSENTIALS OF SYSTEMATIC TRAINING

For training to be systematic and effective, the following conditions must be in place

i. A careful and thorough analysis of the job.

ii. A clear statement of all knowledge and skills required for the job.
iii. A clear statement of the standard of expected Performance.
iv. Clear written system of progress measurements.
v. Satisfactory physical conditions for the training (e.g. train the instructors, available funds,
etc).

BENEFITS FROM TRAINING

Training is a formal procedure used by an Organization to facilitate employees learning so that

their resultant behaviour contributes to the attainment of the organizational goals and objectives.

1. Training increases productivity

2. It improves quality of workmanship.
3. Low wastages of materials.
4. Better utilization of machines.
5. Low damage to machines and tools.
6. It reduces unit cost.
7. It increases profitability to the company
8. It decreases amount of supervisions.
9. Revelation of several special talents of employees.
10. It diminishes labour turnover.

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 11. It leads to increased versatility of employees.
12. It improves supervisory morale.
13. Better climate in the work unit.

TRAINING AND DEVELOPMENT CHALLENGES AND SOLUTIONS IN THE

WORKPLACE

For most companies, the highest priority when it comes to allocating training resources is
increasing the effectiveness of training programs. This is hardly surprising because both
executives and learners benefits from training that is optimized to save time and money while
delivering all its learning process.

Yet despite careful resource allocation, many companies still find their training to be ineffective
(or only partially effective) in achieving its goals. This is usually because there are some
challenges in training and development. These training issues range from a time-poor and
sometimes dispersed workforce to limiting costs while improving engagement and catering for
diverse learning preferences.

Fortunately Moliere was right when he said “the greater the obstacle the more glory in
overcoming it”. So we are giving you the gift of give simple solutions to address the most
common training challenges and improve the effectiveness of your training.

CHALLENGING AND SOLUTIONS TO TRAINING AND DEVELOPMENT.

The most common issues in training and development can seriously hamper your training return
on investment (ROI). But the good news is that they are not all that difficult to mitigate.

HOW TO SOLVE CHALLENGES WHEN IT COMES TO TRAINING AND

DEVELOPMENT

Hectic employee schedule: When work, family, life and a few of other demands are draining
employees’ energy, there is a risk that training just adds to their stress. Worse still, intruding on
employees’ personal time with training session is a surefire way to make them resist and even
resent training.

The solutions

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  Avoid face-to-face training on weekends or after-hours, and limit travel requirement for
training.
 Consider using micro learning approach and deliver useful and relevant content in bite-
sized chunks. Short videos, checklists, info graphics and even gifts are simple micro
learning formats that make training easier to consumer.
 Communicate several concepts at once with clear graphics. They are a valuable time-
saver for learners, as well as welcome break from reading text in email’s, reports and
newsletter.
 Prioritized short, straightforward assessments wherever possible. This provides
employees with quick opportunities for feedback on their learning progress.
 Optimize your training for mobile: Mobile features allow learners to access the LMS and
training materials anywhere, anytime including on the way to work, or during their lunch
break. This makes training so much more convenient.

A dispersed workforce: A steady rise in remote work and a decentralized workforce has led to
new challenges in training and development.

With a geographically disperse workforce, training can be quite hard misunderstandings are
common and cultural differences may even lead to inconsistent training. For example, some
cultures are less comfortable with being vocal on online forums than others.

The solution

 Use social tools to unify your dispersed team. Video conferences, webinars and online
forums are easy, convenient tools to foster trust and empathy between team members
across the country or globe.
 Use training to clarify communications and questions.
 Clarify your training goals clear from the start. All team members should know exactly
what is expected of them during training and how their learning achievements will
benefits them in their jobs.

Different learning habits: Whether you are training 20 or 200 learners. It is vital that you
consider learner preferences and habits in order to prevent further training issues.

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The current workforce includes at least three generations, all of which have a radically different
relationship with technology. So your training is bound to be less effective if all the employees
are assumed to be equally tech-savvy or to have the same knowledge levels and learning habits.

The solution

 Conduct a thorough needs analysis that focuses on identifying the learning preferences
(especially relating to comfort with technology) of your audience. Use the findings to
inform your training design.
 Choose software with a simple user-friendly interface (UI). Seamless user experience is
good for all learners, not only those who struggle with technology for example, pausing a
video or downloading an assignment should always be straightforward and easy.

Lack of Engagement: Engagement is important on three levels: cognitive, emotional, and

behavioural. Without all three in place, poor knowledge retention, passive learning and a lack of
commitment contributes to training and development.

What is more, behavioral change is impossible without learning engagements, and when training
feels irrelevant or unnecessary, most learners mentally and emotionally ‘check out’ and resist
engaging.

The solution.

 Incorporate practical learning activities like case studies, scenarios, role-plays and
relatable examples into your training. These activities engage learners in active
problem-solving contributing to better cognitive engagement.
 Use discussions forum and other informal live online spaces for learners to interact
casually. This encourages learners to engage emotionally with other learners and with
the training.
 Establish an active learning culture, and make all employees feel like a part of that
culture, can boost emotional engagement.

Training that is not relevant: Many training programs are too generic and not personalized
enough for specific roles or skills. Unfortunately, generic training can strain learners’ time and
patience by forcing them to engage with content that simply is not relevant to them.

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 The solutions

 Categorize learning outcomes into essentials and nice-to-have for each role undergoing
training. Only make essential training compulsory.
 Leverage just in time training to update skills or convey new information exactly when
it is needed most.
 Use relatable case studies and scenario to reinforce the relevance of the training program
to employers’ jobs.
 Conduct feedback surveys after training to find out what learners found most useful, and
where the training program needs refining.

Cost: Facilitation, equipment, venue hire, and the cost of employees’ time (those hours add up)
all make training an expensive undertaking training budgets tend to be small, while training
demands are always steep. This further contributes to challenges in training and development
when a strained budget also needs to incorporate travel and software costs.

The solution

 Move your training online. Online training removes the need for travel and venue costs
and often lowers facilitation cost.
 Use a cost-effective, high performing LMS it will make a huge difference to how far
your budget can stretch when you are training large numbers of employees.
 Streamline your content development by focusing on the best bang-for-your-buck
formats.

EXPECTED FEATURES FOR HEALTHY BUSINESS (ON THE PART OF

EMPLOYEES)

The business environment is not devoid of profit making and good success which depends
majorly on employees

 Loyalty
 Dedication and commitment feeling
 Fairness and equitable treatment
 Ability to work with others

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 Objectivity
 Good intellect.

To build these values into the employees a good training and development programme must
be in place.

To this end we say training is an impactful process conducted on employees to help up their
capacity while improving their competence ability to function better in every area of
functionality.

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 PERFORMANCE MANAGEMENT AND SYSTEM
It is a process and a major one in human capital development and Organizational development.
For Employees, it is meant for productivity while ascertaining strength, weakness and
maximizing opportunities and minimizing threats

For Organization its to assess profitability. Usually Performance management is done with the
use of appraisal which helps to determine how well employees’ are doing on their jobs compare
with set standards that has been committed to the employees could be done together

NOTE: PRODUCTIVITY, PERFORMANCE APPRAISAL, REWARD are the major essence of

performance management.

Performance management is basically to reduce or remove the incidence of failure or

unnecessary deviation from set standard or required process.

INSTRUMENT

Major instrument for measuring performance management is the appraisal method, appraisal
method includes performance appraisal and 360o feedback form of appraisal. The results gotten
from the appraisal methods will lead to

i. Promotion
ii. Transfer
iii. Training and Retraining
iv. Discharge

EFFECT OF PERFORMANCE MANAGEMENT.

1. It helps for career development and projection.

2. Promotion ladder becomes open to committed employees.
3. It prevents fraudulent practices.
4. It eliminates interpersonal conflict.

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PERFORMANCE APPRAISAL

Also known as employee appraisal, is a method by which the job performance of an employee is
evaluated (generally in terms of quality, quantity, cost and time.

Performance Appraisals is a part of career development, it is a formal assessment of how well an

employee is doing his or her job.

Performance appraisal is a part of performance management, including goal setting, Performance

monitoring, feedback and improvement plan. It is a means of getting better results by managing
Performance within an agreed framework of goals standards and competence requirements.

This is a control as well as evaluation and development tool. Information derived from
Performance appraisal is used to assess individuals' effectiveness in the Organization.

Performance Appraisals process

A systematic appraisal system would include the following stages;

Stage 1: Identification of criteria for assessment, perhaps based on the job analysis and
Performance standard.

Stage 2: Preparation of appraisal report by the subordinate manager.

Stage 3: An appraisal interview purposely for an exchange of views on the appraisal report.

Stage 4: Review of appraisal assessment by assessor’s own superior so that the Appraisee does
not feel intimidated by one person.

Stage 5: preparations and implementation of action plans to achieve improvement and changes
agreed.

Stage 6: Follow up: This relate to the Monitoring of the progress of action plan.

OBJECTIVES OF PERFORMANCE APPRAISALS.

1. It is used for assessing the effectiveness of the Organization practice vis-à-vis selection,
Training and so on.
2. Establishing the key or main results which the individuals will be expected to achieve in
the course of his or her work over a period of time.

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 3. Manpower decision making becomes effective vis-à-vis promotion, wages and salary,
termination and demotion and so on.
4. It is useful for career development and Succession.
5. May be necessary for human Research efforts.
6. To aid in decision making about pay rise, promotion and training.
7. As a mean of feedback for employees.

Methods of performance appraisal.

1. Traits Appraisal: superiors is required to complete a report on the individual with regards
to certain characteristics, intelligence, initiative, enthusiasm, skill appearance.
2. Peer Training: individuals are judged by individuals on the same level in the
Organization.
3. Graphics rating skill: most useful for wages and salaries administration and promotion.
4. Critical incident method and ability to cope with pressure.
5. Overall assessment: The manager writes in narrative from his judgements about the
appraiser.

Performance Appraisals characteristics.

1. Period
2. Purposeful or targeted (exercise or job).
3. Systematic
4. Impartial Rating.
5. It is meant to buffer i.e. check &ensure
 Productivity (output against input)
 Profitability
 Break even level
 Efficiency
 Goal attainment
 Employee satisfaction
 Quality of service and product
 Meant to lead to management effectiveness.

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  Improved individual Performance.
 Employee Moral.

OTHER NAMES FOR APPRAISALS.

1. Merit Rating
2. Progress Report
3. Service Rating
4. Personnel Review
5. Employee evaluation
6. Behaviour assessment

RELEVANCE OF EMPLOYEE PERFORMANCE APPRAISAL.

The administrative purpose

 To place, review and prepare staff salaries and make provision of other financial
rewards.
 To determine the exact wages and incentive payment through increments.
 To take decision on selection of staff to be promoted. This provides a reliable
index for promotion.
 To know when to rotate workers from their current job to another.
 To take decisions layoffs and transfers.
 To identify actions that would require differential treatment among employees.
 As a documentation to justify any decision in court.

Development purposes are:

 To review past performance and suggest ways of improvement.

 To meet targets or standard already set.
 To identify role and work of employee
 To set individual goals of employees
 To identify employees’ career plans.
 To identify individual strengths and weakness used in layoffs, promotion and
transfer.

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  To motivate employees’ for higher Performance through the Provision of feedback.
 To enable managers work closely with subordinates during coaching.
 To improve general work attitude, Performance of workers and achieve better
results.

There are more reasons why Organization carry out Performance evaluation on their
employees:

 To see how effective the employees’ are on their jobs.

 To see how effective management in hiring and placing employees.
 To obtain information on human resources planning.
 To identify individual that can assume new or additional responsibility.
 To reduce management favouritism of staff
 To identify which of the employees should receive merit.
 To enable management to improve Organizational effectiveness by getting the best
performance from their employees.

Self-appraisal

This occurs when individuals carry out their own self-evaluation as a major input into the
appraisal process.

Advantages

a. It saves managers time

b. It can reconcile the goals of an individual with that of the organization.
c. It offers increased responsibilities to individuals.
d. Self-appraisal offers increased flexibility.

Disadvantages

 Difficult often to judge oneself.

 Individual may deliberately over judge themselves.

Golden rules for Performance Appraisal

 There should be no room for biases

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  It must be constructive in purpose
 It should not be used to intimidate
 Appraisal interview should not be defensive.
 The objective must be cleared to everybody.

Element of a Successful Performance Appraisals System

 Clear instructions and training for Performance raters.

 Performance-rater familiarity with the nature and importance of job duties on which
employee is being rated and which the employee’s actual performance
 Use of an appraisal system that is a job-related and understandable as possible.
 Precautions against improper bias by performance rated
 Some additional level of review and signature beyond the Performance raters.
 Some amount of monitoring to ensure uniform approach or application of the standard in
the performance system.
 Employee’s right to review and comment.
 Employee's right of appeal if the system is oriented towards that.
 Whether the system is numerical and traditional, or collaborative, some means to ensure
specific and mutually agreed-upon goals.
 Some statistical evaluation for adverse impact

Barriers to Effective appraisal

 Appraisal could be confrontational

 It could be used as judgment that is, one sided process where manager act as the judge.
 Appraisals are often conducted like friendly chart without purpose or outcome.
 It could be bureaucratic. That is, a form-filling exercise designed to satisfy the finance
department.
 Appraisals always come up like an annual routine events.

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MOST EFFECTIVE APPRAISAL

it depends on the line of job or field of operation.

360° Degree Appraisal

This is multi-source appraisal. Feedback about an individual's Performance is collected from

different sources which include the following:

 Individual' immediate manager

 Subordinate reporting to the appraisee
 Peers and co-workers.
 Customers, for example sales people need to know what’s customers thought about them

ERROR IN APPRAISAL

 Hallo effect
 Horn Effect
 Variation of standards
 Central tendency error
 Contrast error
 Not considering human value.

WAY OUT

 Follow set standards

 Take good training
 Equity value
 Empathy
 360o as a way out where others can’t help

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COMPENSATION DESIGN AND REWARD MANAGEMENT

COMPENSATION
Definition
Compensation refers to a level of pay both financial and nonfinancial reward that an employee
receives in return for the labour offer.
Compensation management is then a process of designing and implementing pay system that
ensures an organization attracts, retain and maintains capable and willing workforce to ensure
organisational goals and objectives.
Basic components of Compensation
1. Wages and salaries
2. Fringe benefits (housing and transport etc.)
3. Incentives

Environment of compensation management

1. Economic environment
2. Socio-cultural environment
3. Political and legal environment
4. Physical environment
5. Educational environment
Differences between wages and salaries
Salaries wages
1. Annual rate Hourly rate
2. Paid monthly Paid weekly
3. Paid by Bank transfer Paid in cash
4. Performance related pay Incentives schemes
5. Occupational pensions No fringe benefits
6. Liberal expenses paid No expenses paid
7. Company car No car

Wages and Salary Administration

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Wages and salary payment must be fair to all parties, that is to employer in terms of ability to
pay and employee in terms of the amount plus the method of payment.

The following factors are considered when determining the appropriate wages rate for an
employee;
a) General standard of living
b) Company's ability to pay
c) Industrial average
d) Government regulations
e) Individual's competence level
Compensation and Welfare Services
Compensation takes two forms.
Direct compensation (wages and salaries)
Indirect compensation (fringe benefits)
Direct Compensation: Wages and salaries are the compensation people receive on a regular
basis (monthly, biweekly or weekly).Workers are paid on the basis of time (by the hour, day,
week or month) or on the basis of output (an incentive plan).
Indirect Compensation: Fringe benefits are an important part of the overall compensation
package in most companies. Employee benefits now account for about 40 percent of payroll
costs. The profitability of the company is one of the primary determinants of what benefits are
offered by the firm.
One successful approach to providing benefits to employees of a business is to allocate a certain
amount of money per employee for benefits. Each employee then chooses the package of
benefits that suits his or her current needs This approach is called cafeteria planning because it is
similar to going down to a cafeteria line where each customer chooses what he or she wants to
eat it has been suggested that employees perceive this approach as highly equitable because it
allows freedom of choice and does not impose a single package of benefits on all employees for
example. A young employee with several small children may be interested in dental insurance
for his family He is so not really interested in or motivated by a pension plan at this time in his
life. Another employee in this same company is in his late forties, has no dependent children and
is planning for retirement to force the same benefit on these two employees is not an effective

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use of benefit money. To allow some choice on the part of participants is a major advantage or
the cafeteria approach to benefit planning.
REMUNERATION

i. It is in form of service such as

ii. Recreational services
iii. Canteen services (subsidized)
iv. Medical services.

BENEFITS

i. Insurance program
ii. Discount or purchase of company product or property
iii. Scholarships

OBJECTIVES

i. To attract qualified manpower

ii. To motivate the employees
iii. To retain the workers while reducing labour turnover
iv. To improve the standard of training of workers.

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 CAREER
Definition
The sequence of work related position occupied throughout a person's life
Issues and Planners of career
 Career guidance and counselor-helps
 Parents
 Peers
 Relationship-husband and wife
 Job gotten may or help
 God being the ultimate
Note in career
And so there is no basis for comparing it is a unique matter.
There is no standard set by anyone.
Note: Usually it becomes a matter of success.
Why do organization plan career for their employees
 Retention
 Goodwill
 Productivity
 Good market share
 Influence policies

Career Planning and Development

Definition
A career as defined by Mathis and Jackson (1994) is the sequence of work-related positions
occupied throughout a person's life. In most of our secondary schools, there exist offices of
career guidance and counsellors assisting/guiding the young ones. In organization too, employers
also do provide such for their individual employees.
Most students also went through school without any career planning and such people went
through life wondering what to do, whereas, many successful people planned their lives so that
they would not wonder aimlessly throughout life. Those who planned their lives find out answers

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to questions such as "What do l want to do?” “What can | do?" "What opportunities do l have?"
"Where do l go from here?" “How do I know when | get there?"
To answer these questions, we must bear in mind that the person making a choice is an
individual and he may be influenced by his values, attitudes, and culture. Again, his choice of
career is going to be job related; it goes through a life span until retirement. A related definition
by Hall as cited in Crane (1982) says that "career is the individually perceived sequence of
attitudes and behaviours associated with work-related experiences and activities over the span of
the person's life
Concept of Career
The concept of career is concerned with the individual. For an individual to have career. He must
have acquired some knowledge through education or other forms of training available and
affordable to him. He would then decide whether to work to himself or work for someone else.
Another decision would be whether to work in private or public organization. It is important for
an individual to plan his career even if his employer provides little or no guidance at all. No
matter the type of work an individual engages in, he has a career. There is a saying that "as long
as everyone has as shadow, everyone has a career. The word career does not only refer to
individuals in professional areas such as Law, Medicine, Teaching and so on it includes other
types of work people engage in as long as an individual works grow and find satisfaction he Is
going through a career of his life.
The word, career can mean different things to different people It depends on one looks at it. To a
worker in an organization career means upward movement as one grows and advances. To
those in the 'professional' areas such as lawyers, actors, academic professors and military
officers, career follows a pattern of ladder which they all have to climb as they grow and
advance. To ordinary people career could mean a long life sequence of job or role related
experience that lead to satisfaction and changes in attitude.
The usage of the word, career does not explain whether someone is a success or a failure in life.
It only means that one had gone through a series of steps of work progress in life. Some
individuals may have moved faster than others, while some marked time for years in a person
because there is no comparison of one individual to another in career. This is because there is no
standard career set by anybody.

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It is important to note that an individual's attitude and behaviour changes as that individual
moves from one level of his career to another level. It is also important to note that it is not only
individuals who work with non-governmental organizations or other areas such as schools,
homes, or missions are also referred to as having had a career.
Career Planning
Career planning refers to a series of steps or process taken by an individual in choosing his
career. It also refers to the path his career would follow It is a process whereby an individual
chooses what type of occupation to go into and where to work.
It is also the responsibility of the organization as it is the duty of the manager to develop or
inform employees the career opportunity available within the organization and those that will be
needed in future. This is because they are in close contact with them always. The managers are
supposed to encourage subordinates to learn how to plan their own career. In fact, it is the
personnel department that oversees and encourages in formal career planning activities.
Manpower Planning and Career Planning
Sometimes it could be confusing to differentiate manpower planning from career planning.
Manpower planning refers to the process by which the management of an organization
determines from the manpower they have now, the manpower they would be requiring in the
future. The purpose of this would be to continuously achieve its objectives. Career planning is
the process or sequence of events an individual goes through at his place of work to move from
one level to the next level as he grows and makes a living throughout his life time. Let us see
how an individual plans his career.
Individual Career Planning

An individual plans his career by going through the following phases: to know how well he
could perform and what he needs to do to improve on his
 Self-Assessment: This a period when an individual appraises himself thoroughly
performance. Sometimes, he might require the assistance of a counsellor and guidance to
test him. He could also get information about himself from his parents, relations, peers
and his boss.
 Occupational information: Information from other companies in the same industry
could also help him as he looks out for better job opportunities where he could find
satisfaction

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  Selection of a desired goal: This could bring fulfillment in an individual's life. He could
choose a better path to follow. In other words, he could decide that at a particular age in
his life, he should be able to earn amount as salary, marry and have certain number of
children, become a leader and if possible, own or head his company.
 Implementation: Whatever he was able to find in his search, he would then put into
practice, monitor his progress and make sure that he achieves his goals
Why do organizations plan career for their employees?
There are various reasons why organizations plan their employees’ career. Some of them include
 To motivate the employee because the employees' view any form of opportunity to
advance and better education as a motivator
 To prevent management executives from pursuing non-business careers which if allowed
could lead to shortage of managerial talent
 Exposing employees to new experiences definitely to prevent them from becoming
obsolete.
 Career planning enables mangers to develop new talents from cross-training.
 To achieve equal employment opportunity (for women and the handicapped).
 To fill positions with qualified individuals.
 Because executives realize that careers exist within the organization s hierarchy and can
be identified.

Emphasis on employee's self-analysis and self-development

For the employees to be able to analyze themselves, they need well-trained manages to counsel
them properly so that they can identify their strengths, weakness developmental needs and
aspirations they also need these managers to appraise their performance so as to advise them on
opportunities in the organization.
Performance appraisal which is a form of management control moulds employees’ career plan. It
identifies employees that are to be promoted, transferred, or demoted some employees move
very fast on the management hierarchy if they are found to be high performers. When an
employee is identified as a high performer or has high potential to do so, he is then prepared for
career pathing.

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A career path is a planned process to develop high potential or promotable employees by
exposing them to various work activities for the purpose of replacing or moving them up to those
positions they are being targeted for. They are guided through this process by well-trained
managers who teach them the art and science of how to do their job. Along the line, they are
given feedback on how well they have performed and how they may develop further.
The Theory of Individual Career Planning
It is important for you to understand this concept because it will help you as a student and also
the career counsellor on how career is developed or how people choose their career. This theory
helps you to explain the following:
 The basis for individual career choice
 The influence on one's occupational selection
 The stages of a career
 The methodology for self-management of a career
Individual Career (Occupational choice)
The theory is divided into two categories:
 The differential theory which says that patterns of ability, styles, talents and dispositions
(natural arrangement) are shaped very early in life, and that may remain constant even
when slight modifications occur These characteristics are determinants of individual
career choice that balances satisfaction and stability.

Sources of Career Awareness Information

It is always good for someone to get information on anything one wants to get into before
venturing into it. So those who have no idea on how to choose a career could get such
information from the following sources:
 Intuitive exercises from many previous work experiences
 Books and potentials
 Counseling centers
 Computerized information

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Individual Development Plan
For an individual to develop a career plan. Personal objectives must be set and to do that the
strength of the individual must be analyzed to help meet those objectives and at the same time
identify shortcomings that would be drawbacks At this point one needs to identify what to do to
overcome these shortcomings and preserve the strength.
Advantages of Career Planning
 Employees, who plan their career, are usually committed to their job and perform better
than those who moonlight all the time.
 Such employee is highly motivated and would appreciate any training programmed that
comes his way so as to develop him.
 The employee's morale is usually boosted and sustained and the high morale gingers him
up to high productivity.
 Management usually find it easier to evaluate the performance of the employee since the
employee understands what he is doing and why.
 Even when the management is not ready to evaluate the performance of the employee,
the employee can appraise himself.
 Career counsellors would find it easier to guide the employee to a higher level

LINE AND STAFF FUNCTION

The above terms or phrase rest on the concept of authority, responsibility and accountability.
Whoever delegates has given a level of authority for which the deligatee must operate or
function
Whatever report or outcome that results from such operation or exercise becomes the
responsibility of the DELIGATOR e.g. Shagaries Chairman taking blames.
Everyone is held accountable for the level or kind of action they take that is having been given
the authority and you take responsibility then you are held accountable
NOTE: AUTHORITY is vested in organizational position not just the human figure however the
personality must have acquired what it takes to be in such position.
LINE RELATIONSHIP

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  CHAIN OF COMMAND: Is the organogram span of control means how many people
are directly responsible to you.
 LINE EMPLOYEES are workers that are directly responsible for manufacturing goods
or providing a service.
 STAFF EMPLOYEES: Workers who occupies ADVISORY POSITIONS and who use
their specialized expertise to support the efforts of line employees
 FUNCTIONAL RELATIONSHIP: Where staff department specialist have authority to
ensure that line managers implement their instructions concerning a particular issue,
while every report goes to the human resource office for attention as to what is required
to function and the manner of operation and punctuality
Staff Process
Staffing is about role specification, careful selection, training and placement.
Job Analysis
Job analysis is a systematic investigation that collects all information pertinent to each task
performed by an employee. From this analysis, identification of skills, knowledge and abilities
required of that employee, and determine the duties, responsibilities and requirements of each
job are carried out. Job analysis should provide information such as:
 Job title
 Department
 Supervision required
 Job description-major and implied duties and responsibilities
 Unique characteristics of the job including location On physical setting
 Types of material used
 Types of equipment used.
 Qualifications.
 Experience requirements
 Education requirements
 Mental and physical requirements
 Manual dexterity required.
 Working conditions (inside, outside, hot, cold, dry, wet, noisy, dirty and so on)

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Job Description
The job analysis is used to generate a job description, which defines the duties of each task, and
other responsibilities of the position. The description covers the various task requirements, such
as mental or physical activities, working conditions and job hazards. The approximate percentage
of time the employee should spend on each activity is also specified. Job descriptions focus on
the what, why, where and how of the job.
There is an excellent resource the organization can use to develop job description, ask employees
themselves to describe their jobs .A good employee may know more about the job than anyone
else.
Personnel Specification
The Job specification describes the person expected to fill a job it details the knowledge (both
educational and experiential), qualities skills and abilities needed to perform the job
satisfactorily. The job specification provides a standard against which to measure how well an
applicant matches a job opening and should be used as the basis for recruiting. Items of
personnel specification include height, colour, weight, appearance and so on.
Determining Needed Skills and Abilities
The trick is getting the right person for the job is in deciding what kind of skill is needed to
perform the job. Once an organization knows what it takes to do the job, the applicant's skills and
experience to the job's requirements can be easily matched.
The first step in analyzing a job is to describe it.
A job should be carefully described and documented. The skills required for such job should be
carefully described too. What is the lowest level of skill an organization will accept? In this
example, let us assume that you decide initially to hire a secretary, but discover that secretaries
are scarce and expensive moreover, in a given area stenographers are almost as hard to find and
nearly as expensive as secretaries. Perhaps organization could get by with a typist. Hiring a typist
may be both easier and cheaper than hiring a secretary or stenographer many high schools
students are well qualified as typists, and many are seeking part-time work.

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RELATIONSHIP BETWEEN PERSONNEL DEPARTMENT AND OTHER
DEPARTMENT
As explained earlier, the reporting line is a typical means of explaining the relationship between
personnel department and other department area as seen in the two diagrams below.
Personal manager.

Fig1: sample structure of the personnel function in an autonomous establishment.

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Fig 2: sample structure of the personnel function in a large integrated organization

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