Ue ug Suu Applicants may already be well known to the selection team External applicant will bring new ideas and practices to the business ~ this helps keep existing staff focused on the future rather than ‘the way things have always been done’ Applicant will already know the organisation and its internal methods —no need for induction training Should be a wide range of potential applicants - not limited to internal staff Culture of the organisation will be well understood by the applicant Avoids resentment sometimes felt by existing staff if one of their former colleagues is promoted above them Often quicker than external recruitment Likely to be cheaper than using external advertising and recruitment agencies Standard of applicants could be higher than if limited to internal applicants Gives internal staff a career structure and a chance to progress Staff will not have to get used to a new style of management approach if vacancy isa senior postAdvantages Disadvantages of Of-The-Job Tcning eed Cee al consutanis sed fo ich empoyees cre more ly to. 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An outige constants kay To be ighy sled wh ls specticaly neces fo be an effective, engaging and motvaing instruct. The normal wotplace locaton s especialy convenient for aio ow prodvetvly of workers being tained. Froductiy wil ony ely ‘evelved i the Faring programme, Ofte leatons may incieave wih ime dnd added raring. so werk may not Be geting done a invlve ex rave or tal invoNed. ecient oe otter employees and fsks may be hier, ete wl be fewer euplons fo the daly wok schecve of I posible tha in house anes may pass on ‘cs and sat cus fo the employees involved, the Raia si working, people they are tine, posbly negatively alcting qually and safety procedures. Rien Performance appraisal: Staff appraisal the process of assessing the effectiveness of an employee judged against pre-set objectives. This should be a continuous process. Development might take the form of new challenges and opportunities, additional training | courses fo leam new skills, promotion with Gdditional delegated authority and chances for job enrichment. To enable a worker to continually achieve a sense of selt-fulfment, the HR deperiment should work closely with the worker's functional deporiment fo establish a career plan that the individual feels is relevant and reaistic ‘ond in ine with corporate objectives. In this wey. an individual's progress and improvement can a\s0 be geared fo the needs of the firm. Appraisal is often undertaken annually. It is an essential component of a staff development programme. The analysis of performance against pre-set and agreed targets comoined with ihe setting of new targets allows the fulure performance of the worker to be linked fo the objectives of the business. Both appraisal and staff development are important features of Herzberg’s motivators (see HRM topic 2.4: Motivation) - those intrinsic factors that can provide the conditions for effective motivation at work, An appraisal form is offen used which will comment on the worker's ability to meet certain criteria and may suggest areas for action and improvement or recommendations for training or promotion.REASONS FOR HAVING AN EFFECTIVE APPRAISAL SYSTEM: + Anemployee's performance can be ossessed and recorded against his or her targets and Job description itis c useful fool for staff self-reflection on work-based performance Facilitates management in being able to commend stat for work welll done It can assist in identifying bariers that may be impeding employee performance Icon assist in identifying training and development fo advance employee performance New goals and targets for continuous improvement can be established + Professional development needs identified can assist employee career planning + Ausetul tool for gauging the suitability of stat for promotions, pay increases and bonuses. PPRAISAL FORMATIVE This type of appraisal is both o planned and continuous process where appraisal evidence is Used fo inform employees about ways they can improve their workplace practices. Its main purpose is to enable managers and employees to have conversations about workplace performance, encouraging staff to think constructively about their own contributions fo the organisation within their job roles. Ths, in turn, assists the appraise to change practices and improve their overall levels of attainment. SUMMATIVE This type of appraisal s usually « written description of a staf member's annual achievements ond personal performance. A summative appraisal is likely to have recommendations and new fargets and there is a degree of employee accountabilty inherent in the final document. Tne goal is to evaluate the relative contriaution and performance of employees by using a predetermined set of standards or benchmarks. Areas of competency will be identified as will areas that may need development and improvement. ‘360-DEGREE FEEDBACK 360 degree appraisal involves feedback of the manager, supervisor. team members and any direct repors. In this method of appraisal, employees complete profile has to be collected and assessed. In addition to evaluating the employees work performance and technical skill set, an appraiser collects an in-depth feedback of the employee. However, such appraisals can often be based on opinions rather than factual evidence so core must be taken. ‘360-DEGREE FEEDBACK Employee self-apprcisal, within a performance management or annual performance review system involves asking the employee to self-evaivate his or her job performance. Typically. Prior fo meeting with cn employee, the manager will ask the employee to complete an evaluation form on his or her own, to be used as a basis for discussion during the annual performance review meeting. Then at the meeting, the manager and employee discuss the self-appraisal results, and negotiate final evaluations based on both the managers perceptions and those of the employee. It is rare that self-appraisal or self-evaluation results, are used without discussion and negotiation and they should not be. Actual self-evaluations {s part of performance management can take the form of evaluating progress towards pre- defined annual objectives and periormance standards, involve the employee in rating him or her self using the same rating form the manager uses, or even involve self-ranking.CC est) © Reduction and control of operating costs. Instead of employing expensive specialists that might not be kept busy at all times it could be cheaper to ‘buy in’ specialist services or products as and when needed, Outsourcing firms may be cheaper because they benefit from economies of scale, as they may provide similar services to a large number of other businesses, Much outsourcing involves offshoring — buying in services, components or completed products from low-wage economies. Pte d © Loss of jobs within the business. Workers who remain directly employed by the organisation may experience a loss of job security, reducing motivation. Bad publicity may result from redundancies, especially f the business is accused of employing very low-wage employees in other countries to replace the jobs lost. The firmn’s ethical standards could be questioned. e Increased flexibility. By removing departments from the staff payroll and buying in services when needed, fixed costs are converted into variable costs. Additional capacity can be obtained from outsourcing only when needed and contracts can be cancelled if demand falls much more quickly than closing down whole factories owned by the business, © Quality issues. Internal processes will be monitored by the firm’s own quality assurance system. This will not be so easy when outside contractors are performing important functions. A clear contract with minimum, service-level agreements will be needed. The company contracting out the functions may have to send quality assurance staff out to the business undertaking the tasks to ensure that product quality and customer service standards are being met. © Improved company focus. By outsourcing ‘peripheral’ activities the management of a business can concentrate on the main aims and tasks of the business. These are called the ‘core’ parts of the business. So, a small hotel might use management time to prove customer service and outsource the accounting function completely. © Customer resistance. This could take several forms. Overseas telephone call centres have led to criticism about inability to understand foreign operators. Customers may object to dealing with overseas outsourced operations. Bought-in components and functions may raise doubts in customers’ minds over quality and reliability © Access to quality service or resources that are not available internally. Many outsourcing firms employ quality specialists that small to medium-sized businesses could not afford to employ directly. © Ethical concerns. If outsourcing is undertaken by firms in countries with poor human rights or employment rights records, it may be cheaper for the business that has outsourced — but how will the media and consumers view this potentially unethical decision? © Free up internal resources for use in other areas. If the human resources department of an insurance company is closed and the functions bought in, then the resulting office space and computer facilities could be made available to improve customer service. © Security. Using outside businesses to perform important IT functions may be a security risk ~ if important data were lost by the business, ‘who would take responsibility