Human Resource Management Strategies
Human Resource Management Strategies
Introduction:
Human resource (or personnel) management, in the sense of getting things done through people.
It's an essential part of every manager's responsibilities, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to ensuring
that the human resource function is performed efficiently.
"People are our most valuable asset" is a cliché which no member of any senior management
team would disagree with. Yet, the reality for many organizations is that their people remain
under valued
under trained
under utilized
poorly motivated, and consequently perform well below their true capability
The rate of change facing organizations has never been greater and organizations must absorb
and manage change at a much faster rate than in the past. In order to implement a successful
business strategy to face this challenge, organizations large or small, must ensure that they have
the right people capable of delivering the strategy.
The market place for talented, skilled people is competitive and expensive. Taking on new staff
can be disruptive to existing employees. Also, it takes time to develop 'cultural awareness',
product/ process/ organization knowledge and experience for new staff members.
As organizations vary in size, aims, functions, complexity, construction, the physical nature of
their product, and appeal as employers, so do the contributions of human resource management.
But, in most the ultimate aim of the function is to: "ensure that at all times the business is
correctly staffed by the right number of people with the skills relevant to the business needs",
that is, neither overstaffed nor understaffed in total or in respect of any one discipline or work
grade.
These issues motivate a well thought out human resource management strategy. Failure in not
having a carefully crafted human resources management strategy, can and probably will lead to
failures in the business process itself.
This set of resources are offered to promote thought, stimulate discussion, diagnose the
organizational environment and develop a sound human resource management strategy for your
organization. We begin by looking at the seven distinguishable functions of human resource
management provide to secure the achievement of the objective defined above.
DEFINING A HUMAN RESOURCE STRATEGY .
Step 1: Get the 'big picture'
Highlight the key driving forces of your business. What are they? e.g. technology,
distribution, competition, the markets.
What are the implications of the driving forces for the people side of your business?
What is the fundamental people contribution to bottom line business performance?
That relates to the people side of the business.it is the actual process of thinking through the
issues in a formal and explicit manner that is important.
Focus on the internal strengths and weaknesses of the people side of the business.
Vigorously research the external business and market environment. High light the opportunities
and threats relating to the people side of the business.
From this analysis you then need to review the capability of your personnel department.
Complete a SWOT analysis of the department - consider in detail the department's current areas
of operation, the service levels and competences of your personnel staff.
Go back to the business strategy and examine it against your SWOT and COPS Analysis
Identify the critical people issues namely those people issues that you must address.
Those which have a key impact on the delivery of your business strategy.
Prioritize the critical people issues. What will happen if you fail to address them?
Remember you are trying to identify where you should be focusing your efforts and resources.
For each critical issue highlight the options for managerial action generate, elaborate and create -
don't go for the obvious. This is an important step as frequently people jump for the known
rather than challenge existing assumptions about the way things have been done in the past.
Think about the consequences of taking various courses of action.
Consider the mix of HR systems needed to address the issues. Do you need to improve
communications, training or pay?
What are the implications for the business and the personnel function?
Once you have worked through the process it should then be possible to translate the action plan
into broad objectives. These will need to be broken down into the specialist HR Systems areas
of:
Develop your action plan around the critical issues. Set targets and dates for the accomplishment
of the key objectives.
The ultimate purpose of developing a human resource strategy is to ensure that the objectives set
are mutually supportive so that the reward and payment systems are integrated with employee
training and career development plans.
There is very little value or benefit in training people only to then frustrate them through a failure
to provide ample career and development opportunities.
Warning Indicators
Your organization is more than likely in trouble if any of the following holds true:
Use them to provoke thought and to stimulate discussion. Consult with others in your
organization. They will help you to identify the critical human resource issues facing your
organization.
The aim is to begin to explore how a considered and planned approach to people management
can improve business performance, to the benefit of all.
Use this checklist in conjunction with our team building diagnostic instrument. It will, via your
team members responses identify critical issues they perceive as important. These issues may be
at odds with your own perceptions and analysis and therefore any such discrepancy will need to
be addressed.
Do your staff identify with the organization and 'the success of the organization' as
being of direct benefit to themselves?
Do your staff see themselves as having common interests with their work colleagues
and group? Is there a strong team spirit?
Is work allocated on the basis of individual expertise rather than position in the
organization?
Are there sufficient skills / power bases in the organization?
Are there appropriate leadership skills within the organization?
Are your staff encouraged to say what they think about the organization?
Does your organization encourage innovation and creativity amongst staff?
Do your staff feel a sense of personal responsibility for their work?
Is quality emphasized in all aspects of the organization?
Organization
People
Do your staff have the necessary skills and knowledge to perform their jobs in the
most effective manner?
Do your staff understand their jobs and how they contribute to overall business
performance i.e. have clear goals and objectives?
Do your staff have a customer service orientation?
Are people with potential spotted and developed for the future?
Are your staff encouraged to perform well through the giving of recognition,
feedback, etc.?
Do your people know what their expected performance standards are?
Systems
Do your organization's systems (e.g. employee selection and recruitment,
promotion, planning, management, information and control) encourage effective
performance among your staff?
Are these systems consistent across the organization?
Are there clear rewards for effective performance within your work group?
Does the organization review its systems frequently and ensure they mutually
support each other?
Planning staff levels requires that an assessment of present and future needs of the organization
be compared with present resources and future predicted resources. Appropriate steps then be
planned to bring demand and supply into balance.
Thus the first step is to take a 'satellite picture' of the existing workforce profile (numbers, skills,
ages, flexibility, gender, experience, forecast capabilities, character, potential, etc. of existing
employees) and then to adjust this for 1, 3 and 10 years ahead by amendments for normal
turnover, planned staff movements, retirements, etc, in line with the business plan for the
corresponding time frames.
The result should be a series of crude supply situations as would be the outcome of present
planning if left unmodified. (This, clearly, requires a great deal of information accretion,
classification and statistical analysis as a subsidiary aspect of personnel management.)
What future demands will be is only influenced in part by the forecast of the personnel manager,
whose main task may well be to scrutinize and modify the crude predictions of other managers.
Future staffing needs will derive from:
What should emerge from this 'blue sky gazing' is a 'thought out' and logical staffing demand
schedule for varying dates in the future which can then be compared with the crude supply
schedules. The comparisons will then indicate what steps must be taken to achieve a balance.
That, in turn, will involve the further planning of such recruitment, training, retraining, labor
reductions (early retirement/redundancy) or changes in workforce utilization as will bring supply
and demand into equilibrium, not just as a one–off but as a continuing workforce planning
exercise the inputs to which will need constant varying to reflect 'actual' as against predicted
experience on the supply side and changes in production actually achieved as against forecast on
the demand side.
An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to
determine their essential factors) written into a job description so that the selectors know what
physical and mental characteristics applicants must possess, what qualities and attitudes are
desirable and what characteristics are a decided disadvantage;
In the case of replacement staff a critical questioning of the need to recruit at all
(replacement should rarely be an automatic process).
Effectively, selection is 'buying' an employee (the price being the wage or salary
multiplied by probable years of service) hence bad buys can be very expensive. For
that reason some firms (and some firms for particular jobs) use external expert
consultants for recruitment and selection.
Equally some small organizations exist to 'head hunt', i.e. to attract staff with high
reputations from existing employers to the recruiting employer. However, the 'cost'
of poor selection is such that, even for the routine day-to-day jobs, those who
recruit and select should be well trained to judge the suitability of applicants.
Internal promotion and internal introductions (at times desirable for morale
purposes)
Careers officers (and careers masters at schools)
University appointment boards
Agencies for the unemployed
Advertising (often via agents for specialist posts) or the use of other local media (e.g.
commercial radio)
Where the organization does its own printed advertising it is useful if it has some identifying
logo as its trade mark for rapid attraction and it must take care not to offend the sex, race, etc.
antidiscrimination legislation either directly or indirectly. The form on which the applicant is to
apply (personal appearance, letter of application, completion of a form) will vary according to
the posts vacant and numbers to be recruited.
It is very desirable in many jobs that claim about experience and statements about qualifications
are thoroughly checked and that applicants unfailingly complete a health questionnaire (the latter
is not necessarily injurious to the applicants chance of being appointed as firms are required to
employ a percentage of disabled people).
Before letters of appointment are sent any doubts about medical fitness or capacity (in
employments where hygiene considerations are dominant) should be resolved by requiring
applicants to attend a medical examination. This is especially so where, as for example in the
case of apprentices, the recruitment is for a contractual period or involves the firm in training
costs.
(All of these need skilled testing and assessment.) In more senior posts other techniques are:
Leaderless groups
Command exercises
Group problem solving
(These are some common techniques - professional selection organizations often use other
techniques to aid in selection.)
1. Build a foundation. It’s important to build a solid foundation for your employees so they
feel invested in the company. Tell them about the history of the business and your vision
for the future. Ask them about their expectations and career goals, as well as how you can
help them feel part of the team. When any new employee starts, make sure he or she
receives a thorough welcome orientation.
2. Create a positive environment. Promote an office atmosphere that makes all employees
feel worthwhile and important. Don’t play favorites with your staff. Keep office doors
open and let folks know they can always approach you with questions or concerns. A
happy office is a productive office.
3. Put people on the right path. Most employees are looking for advancement
opportunities within their own company. Work with each of them to develop a career
growth plan that takes into consideration both their current skills and future goals. If
employees become excited about what’s down the road, they will become more engaged
in their present work.
4. Educate the masses. Help employees improve their professional skills by providing on-
the-job training or in-house career development. Allow them to attend workshops and
seminars related to the industry. Encourage them to attend adult education classes paid
for by the company. Employees will feel you are investing in them, and this will translate
into an improved job performance.
5. Don’t forget the fun. Once in a while you have put work aside and do something nice
for the people who work for you. Treat the office to a pizza lunch or take everyone to the
movies. Reward employees with an unexpected day off or by closing the office early on a
random Friday afternoon.
6. Acknowledge contributions. You can make a huge difference in employee morale
simply by taking the time to recognize each employee’s contributions and
accomplishments, large or small. Be generous with praise.
7. Provide incentives. Offer people incentives to perform well, either with something small
like a gift certificate or something more substantial such as a performance-based bonus or
salary increase. Give out “Employee of the Month” awards. Such tokens of appreciation
will go far in motivating employees.
8. Honor your promises. Getting people to give their all requires following through on
promises. If you tell an employee that he or she will be considered for a bonus if numbers
improve or productivity increases, you’d better put your money where your mouth is.
Failure to follow through on promises will result in a loss of trust -- not only that person’s
trust, but the trust of every employee that hears the story.
9. Provide career coaching. Help employees reach the next level professionally by
providing on-site coaching. Bring in professionals to provide one-on-one counseling,
which can help people learn how to overcome personal or professional obstacles on their
career paths.
10. Match tasks to talents. You can improve employee motivation by improving employee
confidence. Assign individuals with tasks you know they will enjoy or will be
particularly good at. An employee who is successful at one thing will have the self-
confidence to tackle other projects with renewed energy and excitement.
On-the-spot managers and supervisors, not HR staffs, carry out evaluations. The personnel role is
usually that of:
Full-scale periodic reviews should be a standard feature of schemes since resistance to evaluation
/ appraisal schemes is common and the temptation to water down or render schemes ineffectual
is ever present (managers resent the time taken if nothing else).
(a) Workers (and their informal and formal groups, i. e. trade union, organizations and their
representatives);
(b) Employers (and their managers and formal organizations like trade and professional
associations);
(c) The government and legislation,government agencies 'independent' agencies like the
Advisory Conciliation and Arbitration Service.
Oversimplified, work is a matter of managers giving instructions and workers following them -
but (and even under slavery we recognize that different 'managing' produces very different
results) the variety of 'forms' which have evolved to regulate the conduct of parties (i.e. laws,
custom and practice, observances, agreements) makes the giving and receipt of instructions far
from simple. Two types of 'rule' have evolved:
Broadly in the Western style economies the parties (workers and employers) are free to make
their own agreements and rules. This is called 'voluntarism'. But it does not mean there is total
noninterference by the government. That is necessary to:
HR managers responsibilities
The personnel manager's involvement in the system of industrial relations varies from
organization to organization, but normally he or she is required to provide seven identifiable
functions, thus:
The forms this welfare can take are many and varied, from loans to the needy to counseling in
respect of personal problems.
The location of the health and safety function within the organization varies. Commonly a split
of responsibilities exists under which 'production' or 'engineering' management cares for the
provision of safe systems of work and safe places and machines etc., but HRM is responsible for
administration, training and education in awareness and understanding of the law, and for the
alerting of all levels to new requirements.
In general, education is 'mind preparation' and is carried out remote from the actual work area,
training is the systematic development of the attitude, knowledge, skill pattern required by a
person to perform a given task or job adequately and development is 'the growth of the
individual in terms of ability, understanding and awareness'.
From time to time meet special needs arising from technical, legislative, and knowledge need
changes. Meeting these needs is achieved via the 'training loop'. (Schematic available in PDF
version.)
The diagnosis of other than conventional needs is complex and often depends upon the intuition
or personal experience of managers and needs revealed by deficiencies. Sources of inspiration
include:
Common sense - it is often obvious that new machines, work systems, task
requirements and changes in job content will require workers to be prepared;
Shortcomings revealed by statistics of output per head, performance indices, unit
costs, etc. and behavioral failures revealed by absentee figures, lateness, sickness
etc. records;
Recommendations of government and industry training organizations;
Inspiration and innovations of individual managers and supervisors;
Forecasts and predictions about staffing needs;
Inspirations prompted by the technical press, training journals, reports of the
experience of others;
The suggestions made by specialist (e.g. education and training officers, safety
engineers, work-study staff and management services personnel).
Designing training is far more than devising courses; it can include activities such as:
Evaluation of the effectiveness of training is done to ensure that it is cost effective, to identify
needs to modify or extend what is being provided, to reveal new needs and redefine priorities
and most of all to ensure that the objectives of the training are being met.
The quality of employees and their development through training and education are major
factors in determining long-term profitability of a small business. If you hire and keep good
employees, it is good policy to invest in the development of their skills, so they can increase
their productivity.
Training often is considered for new employees only. This is a mistake because ongoing
training for current employees helps them adjust to rapidly changing job requirements.
Creating a pool of readily available and adequate replacements for personnel who
may leave or move up in the organization.
Enhancing the company's ability to adopt and use advances in technology because of
a sufficiently knowledgeable staff.
Building a more efficient, effective and highly motivated team, which enhances the
company's competitive position and improves employee morale.
Ensuring adequate human resources for expansion into new programs.
Research has shown specific benefits that a small business receives from training and
developing its workers, including:
Increased productivity.
Reduced employee turnover.
Increased efficiency resulting in financial gains.
Decreased need for supervision.
Employees frequently develop a greater sense of self-worth, dignity and well-being as they
become more valuable to the firm and to society. Generally they will receive a greater share
of the material gains that result from their increased productivity. These factors give them
a sense of satisfaction through the achievement of personal and company goals.
The model below traces the steps necessary in the training process:
Organizational Objectives
Needs Assessment
Is There a Gap?
Training Objectives
Select the Trainees
Select the Training Methods and Mode
Choose a Means of Evaluating
Administer Training
Evaluate the Training
Identifying Training Needs
Training needs can be assessed by analyzing three major human resource areas: the
organization as a whole, the job characteristics and the needs of the individuals. This
analysis will provide answers to the following questions:
Begin by assessing the current status of the company how it does what it does best and the
abilities of your employees to do these tasks. This analysis will provide some benchmarks
against which the effectiveness of a training program can be evaluated. Your firm should
know where it wants to be in five years from its long-range strategic plan. What you need is
a training program to take your firm from here to there.
Also, in today's market-driven economy, you would be remiss not to ask your customers
what they like about your business and what areas they think should be improved. In
summary, the analysis should focus on the total organization and should tell you (1) where
training is needed and (2) where it will work within the organization.
Once you have determined where training is needed, concentrate on the content of the
program. Analyze the characteristics of the job based on its description, the written
narrative of what the employee actually does. Training based on job descriptions should go
into detail about how the job is performed on a task-by-task basis. Actually doing the job
will enable you to get a better feel for what is done.
Selection of Trainees
Once you have decided what training is necessary and where it is needed, the next decision
is who should be trained? For a small business, this question is crucial. Training an
employee is expensive, especially when he or she leaves your firm for a better job.
Therefore, it is important to carefully select who will be trained.
Training programs should be designed to consider the ability of the employee to learn the
material and to use it effectively, and to make the most efficient use of resources possible. It
is also important that employees be motivated by the training experience. Employee failure
in the program is not only damaging to the employee but a waste of money as well.
Selecting the right trainees is important to the success of the program.
Training Goals
The goals of the training program should relate directly to the needs determined by the
assessment process outlined above. Course objectives should clearly state what behavior or
skill will be changed as a result of the training and should relate to the mission and
strategic plan of the company. Goals should include milestones to help take the employee
from where he or she is today to where the firm wants him or her in the future. Setting
goals helps to evaluate the training program and also to motivate employees. Allowing
employees to participate in setting goals increases the probability of success.
Training Methods
There are two broad types of training available to small businesses: on-the-job and off-the-
job techniques. Individual circumstances and the "who," "what" and "why" of your training
program determine which method to use.
On-the-job training is delivered to employees while they perform their regular jobs. In this
way, they do not lose time while they are learning. After a plan is developed for what
should be taught, employees should be informed of the details. A timetable should be
established with periodic evaluations to inform employees about their progress. On-the-job
techniques include orientations, job instruction training, apprenticeships, internships and
assistantships, job rotation and coaching.
Orientations are for new employees. The first several days on the job are crucial in the
success of new employees. This point is illustrated by the fact that 60 percent of all
employees who quit do so in the first ten days. Orientation training should emphasize the
following topics:
Some companies use verbal presentations while others have written presentations. Many
small businesses convey these topics in one-on-one orientations. No matter what method is
used, it is important that the newcomer understand his or her new place of employment.
Lectures present training material verbally and are used when the goal is to present a great
deal of material to many people. It is more cost effective to lecture to a group than to train
people individually. Lecturing is one-way communication and as such may not be the most
effective way to train. Also, it is hard to ensure that the entire audience understands a topic
on the same level; by targeting the average attendee you may undertrain some and lose
others. Despite these drawbacks, lecturing is the most cost-effective way of reaching large
audiences.
Role playing and simulation are training techniques that attempt to bring realistic decision
making situations to the trainee. Likely problems and alternative solutions are presented
for discussion. The adage there is no better trainer than experience is exemplified with this
type of training. Experienced employees can describe real world experiences, and can help
in and learn from developing the solutions to these simulations. This method is cost
effective and is used in marketing and management training.
Audiovisual methods such as television, videotapes and films are the most effective means
of providing real world conditions and situations in a short time. One advantage is that the
presentation is the same no matter how many times it's played. This is not true with
lectures, which can change as the speaker is changed or can be influenced by outside
constraints. The major flaw with the audiovisual method is that it does not allow for
questions and interactions with the speaker, nor does it allow for changes in the
presentation for different audiences.
Job rotation involves moving an employee through a series of jobs so he or she can get a
good feel for the tasks that are associated with different jobs. It is usually used in training
for supervisory positions. The employee learns a little about everything. This is a good
strategy for small businesses because of the many jobs an employee may be asked to do.
Apprenticeships develop employees who can do many different tasks. They usually involve
several related groups of skills that allow the apprentice to practice a particular trade, and
they take place over a long period of time in which the apprentice works for, and with, the
senior skilled worker. Apprenticeships are especially appropriate for jobs requiring
production skills.
Programmed learning, computer-aided instruction and interactive video all have one thing
in common: they allow the trainee to learn at his or her own pace. Also, they allow material
already learned to be bypassed in favor of material with which a trainee is having difficulty.
After the introductory period, the instructor need not be present, and the trainee can learn
as his or her time allows. These methods sound good, but may be beyond the resources of
some small businesses.
Trainers
Who actually conducts the training depends on the type of training needed and who will be
receiving it. On-the-job training is conducted mostly by supervisors; off-the-job training, by
either in-house personnel or outside instructors.
In-house training is the daily responsibility of supervisors and employees. Supervisors are
ultimately responsible for the productivity and, therefore, the training of their
subordinates. These supervisors should be taught the techniques of good training. They
must be aware of the knowledge and skills necessary to make a productive employee.
Trainers should be taught to establish goals and objectives for their training and to
determine how these objectives can be used to influence the productivity of their
departments. They also must be aware of how adults learn and how best to communicate
with adults. Small businesses need to develop their supervisors' training capabilities by
sending them to courses on training methods. The investment will pay off in increased
productivity.
There are several ways to select training personnel for off-the-job training programs. Many
small businesses use in-house personnel to develop formal training programs to be
delivered to employees off line from their normal work activities, during company
meetings or individually at prearranged training sessions.
There are many outside training sources, including consultants, technical and vocational
schools, continuing education programs, chambers of commerce and economic
development groups. Selecting an outside source for training has advantages and
disadvantages. The biggest advantage is that these organizations are well versed in training
techniques, which is often not the case with in-house personnel.
The disadvantage of using outside training specialists is their limited knowledge of the
company's product or service and customer needs. These trainers have a more general
knowledge of customer satisfaction and needs. In many cases, the outside trainer can
develop this knowledge quickly by immersing himself or herself in the company prior to
training the employees. Another disadvantage of using outside trainers is the relatively
high cost compared to in-house training, although the higher cost may be offset by the
increased effectiveness of the training.
Whoever is selected to conduct the training, either outside or in-house trainers, it is
important that the company's goals and values be carefully explained.
Training Administration
Having planned the training program properly, you must now administer the training to
the selected employees. It is important to follow through to make sure the goals are being
met. Questions to consider before training begins include:
Location.
Facilities.
Accessibility.
Comfort.
Equipment.
Timing.
Careful attention to these operational details will contribute to the success of the training
program.
Following these steps will help an administrator develop an effective training program to
ensure that the firm keeps qualified employees who are productive, happy workers. This
will contribute positively to the bottom line.
Evaluation of Training
Training should be evaluated several times during the process. Determine these milestones
when you develop the training. Employees should be evaluated by comparing their newly
acquired skills with the skills defined by the goals of the training program. Any
discrepancies should be noted and adjustments made to the training program to enable it
to meet specified goals. Many training programs fall short of their expectations simply
because the administrator failed to evaluate its progress until it was too late. Timely
evaluation will prevent the training from straying from its goals.
EMPLOYEE DATABASE
SURNAME…………………………………….…FIRST NAME………………………
DATE OF BIRTH…………………………………
PLACE OF BIRTH………………………………………………..
NATINALITY……………………………………
MARITAL STATUS…………………………………………………………
LANGUAGES KNOWN……………………………………………………………………………………
PRESENT ADDRESS…………………………………………………………………………………
PERMANENT ADDRESS…………………………………………………………………………………
DESIGNATION……………………………………………………………………………
DATE OF APPOINTMENT……………………….
DATE OF CONFIRMATION……………………………………
MONTHLY CONTRIBUTION…………………………………………………………………………
AGES OF CHILDREN………………………….SONS………………………..DAUGHTERS………………………
EDUCATIONAL QUALIFICATIONS………………………………………………………………………
PERPORMANCE APPRAISAL………………………………………………………………………………
RECRUITMENT
Objective of Recruitment
To attract people with multi-dimensional skills and experience that suit the present and future
organizational strategies.
To search for talent globally and not just within the company.
To anticipate and find people for positions that do not exist yet
1 vaccancy
2Job analysis
3 Employment terms
4 Communicate Vacancy
5 Process applications
Is the administrative machine ready to respond to applications? Is job documentation for
candidates prepared?
Log applications/CVs. Compare each with personnel profile
Follow-up on references/security clearances
Decide on/organise recruitment programme. Who, when (meetings, appointments), where
(on-site, off-site).
Short-list and invite candidates to selection activity
Courteous rejections/on-hold candidates
Introduction
Performance appraisal is a powerful tool to help the supervisor meet the objectives of the
department and organization.
The benefits of conducting performance appraisals include providing information necessary
for improving performance and motivating employees.
Performance appraisals also provide important records for the company.
Managers use this information for decisions on raises, training, promotions, and
discipline.
Systematic Steps
First, performance and results expectations and standards of performance are established
and communicated to employees.
The supervisor then observes behavior and performance results, comparing them to the
standards set.
Finally, the supervisor provides reinforcement for acceptable or excellent performance and
works with employees to develop remedies for inadequate performance.
Types of Appraisals
Paired-comparison approach.
Forced-choice approach.
A checklist appraisal
Essay appraisal.
Critical-incident Appraisal
360-degree Feedback
Peer Reviews:
Graphic Rating Scale: A performance appraisal that rates the degree to which the
employee has achieved various characteristics.
The graphic rating scale is the most common type of appraisal used.
Various characteristics such as job knowledge or punctuality are rated by the degree of
achievement.
The advantage of this type of appraisal is that it is relatively easy to use.
However, the ratings themselves are subjective.
What one supervisor considers “excellent” may seem just “average” to someone else.
Also, many supervisors tend to rate everyone as being at least a little bit above average.
Additional descriptive information is an attempt to overcome these problems
• Employees are ranked by comparing the first two employees on the list.
The supervisor places a check mark next to the name of the employee whose performance is
better.
The process is repeated, comparing the first employee’s performance with that of the other
employees.
Then the supervisor compares the second employee on the list with all the others, and so on
until each pair of employees has been compared.
The employee with the most check marks is considered the most valuable
The paired-comparison approach is appropriate when the supervisor needs to find one
outstanding employee in a group for a promotion or special assignment.
The fact that paired comparison makes some employees look good at the expense of
others makes this technique less useful as a method of providing feedback to individual
employees
Forced-choice Approach: A performance appraisal that presents the appraiser with sets of
statements describing employee behavior; the appraiser must choose which statement is most
characteristic of the employee and which is least characteristic.
• This type of appraisal form gives the supervisor sets of statements describing employee
behavior.
For each set of statements, the supervisor must select the one that is most and the one
that is least characteristic of the employee.
The disadvantage of this method is that their quality depends on the supervisor’s
writing skills
The supervisor selects the statement that best describes how the employee performs.
Each job title in the organization has a different set of rating statements.
• The advantage of using this technique is that it is tailored to the organization’s objectives
for employees.
• It also tends to be less subjective than some other approaches.
• However, developing the scales is time-consuming and therefore relatively expensive
A checklist appraisal
The human resources department has a key for scoring the items resulting in a rating of
the employee’s performance.
Also, there is no way for the supervisor to adjust the answers for any special
circumstances that affect performance.
At the time of the appraisal, the supervisor reviews the record to reach an overall
evaluation of the employee’s behavior.
During the appraisal interview, the employee has a chance to respond to each of the
incidents recorded.
• Work Standards Approach: A performance appraisal in which the appraiser compares the
employee’s performance to objective measures of what an employee should do.
This type of appraisal requires the supervisor to establish objective measures of
performance.
•
A typical work standard would be the quantity produced by an assembly-
line worker.
• The supervisor then compares the employee’s actual performance with the
standards.
• This approach works best with production workers
Management by Objectives (MBO)
In organizations where MBO is used to set goals and objectives for employees, the
supervisor will use this approach for performance appraisal also.
The appraisal is based on whether or not the employee has met his or her objectives.
Then the supervisor and employee can compare the employee’s appraisal with his or her
own evaluation
Peer Reviews:
All supervisors will likely use the same approach because it is easier to keep records
showing performance over time.
The supervisor may be able to supplement the appraisal format with other techniques if
they seem helpful by using the “Comment” section of the form or an attached addition.
No rater training
No appeals system
Rater bias
Employee Evaluation and Selection
This article and the associated PDF will considerably help to improve employee
evaluation and selection processes. It will greatly assist in 'engineering' into the people
you are charged with, the skills, experiences, knowledge and other attributes you deem
important to success.
The schematic below is an example of the outcome from the technique. It shows (in blue)
the key dimensions of a job compared against the evaluated attributes (in red) of a
suitable candidate. It is immediately apparent where the strengths and weaknesses of the
candidate are, in relation to this one position. Actions and decisions can then be taken in
respect of the strengths and weaknesses.
f you believe the these processes, employee evaluation and selection, are not key components in
managing for success or you are looking for a better way to execute with a higher degree of
measurable success these HR processes, this technique is for you.
It will also enable you to conduct effective job interviews, focusing you on the interview
questions you need to ask in order to ascertain candidate appropriateness for the important job
dimensions you have analyzed as being important to success.