Course: MBA

Subject: Manpower Planning & HRD

Unit: 4 Semesters: IV

Doranda College Ranchi

Performance Counseling
Performance Counseling is very important for employees to know the level of their performance and the area in
which they need to improve. Performance counseling is a very useful activity provided both the counselor and the
counselee take it in the right spirit. It helps the employee as well as the organization to identify weaknesses and then
to formulate strategies to improve the performance. Performance improvement ultimately helps the organization to
meet its goals and objectives. It is always important to evaluate the performance of the employees periodically to
find out their level of efficiency. Some standard methods have been devised to make employees understand how far
they are from the expected standards so that their performance can be improved. Those employees who lag behind in
certain key performance areas must be assisted to analyze and improve their performance levels. Therefore the
process of performance appraisal helps to evaluate and improve the performance of the employees so that they can
give their best to achieve the goals of the organization as well as achieve better career satisfaction.

Performance Counseling is a very important activity that helps employees to know themselves better. Performance
Counseling refers to the help provided by a manager to his subordinates in objectively analyzing their performance.
It attempts to help the employee in:

1. Understanding himself - his strengths and weaknesses.

2. Improving his professional and interpersonal competence by giving him feedback about his behavior.
3. Setting goals and formulating action plans for further improvement.

Features of Performance Counseling

(1) Conditions for effective counseling

• A climate of trust, confidence and openness is essential for effective counseling. Counseling cannot be
effective if the subordinate does not trust his boss.
• It is necessary that the subordinate should feel free to participate without fear or inhibition as it is a
dialogue between supervisor and subordinate and hence should be a two way communication.
• The main purpose of counseling is employee development.

(2) Performance Counseling Phases

(a) Rapport Building: In the rapport building phase, a good counselor attempts to establish a climate of acceptance,
warmth, support, openness and mutuality. This phase involves generating confidence in the employee to open up
frankly, share his perceptions, problems, concerns, feelings etc. The subordinate must be made to feel wanted and
that his superior is genuinely interested in his development.

(b) Exploration: In this phase, the counselor should attempt to help the employee understand and appreciate his
strengths and weaknesses. He should also understand his own situation, problems and needs. Questions should be
asked which help the employee focus on his problem. For example, if an employee feels that his problem is that
others do not co-operate with him, the counselor may ask questions to narrow down the problem to the employee’s
relationship with a few individuals. Then the superior may ask questions to help the employee understand what he
does (or says) to his colleagues that is making it difficult for him to win their co-operations. Problem identification
is a critical step in planning for improvement. To help the employee make a correct diagnosis of the problem, open-
ended questions may be asked.

(c) Action Planning: Counseling interviews should end with specific plans of action for development of the
employee. The main contribution of the superior in this phase is in helping the employee think of alternative ways of
dealing with a problem. For example, in case of an employee whose relationships with colleagues are poor, the
superior may suggest “What three things can you do in the coming week to improve your relationship with X?”
After helping the employee brainstorm, the superior may also add more alternatives to the solutions already
generated.

Finally the superior may render some assistance in helping the employee implement the agreed upon action plan.
Often good counseling sessions fail to produce effective results due to lack of follow

Processes in Performance Counseling:-

(1) Feedback:
It is extremely important that the feedback is communicated in a manner that produces a constructive response in the
subordinate. Given below are some guidelines that could be followed in giving feedback:

• Feedback should be descriptive and non- evaluative. Rather than putting the employee in a defensive
position by telling him” Your coming in late convinces me that you are not serious about your work”, a
manager may say, “I notice that you have been regularly coming late and I am deeply concerned about
this”.

• It should be focused on the behavior of the person rather than on the person himself. It is necessary to
distinguish between the individual and his behavior in conveying the negative feedback. It should be clear
to the employee that what is being rejected or criticized is some specific behavior of his. The intent is not to
condemn the employee as an individual.

• When conveying feedback, it is generally desirable to back it up with few examples of actual events. Care
must be exercised not to overdo this as the subordinate may misinterpret it that the superior is
systematically building up a well-documented case against him.

• Feedback should be given timely. It should be given at the first opportunity when the employee is in the
receptive mood.

• Feedback should be continuous. It should become a regular practice so that the subordinate develops an
ability to accept and act upon the feedback.

• Feedback should be checked and verified. This will ensure that the subordinate has not misinterpreted the
feedback received from his superior.

(2) Pre-Interview Preparation:

• Make sure you know what was mutually agreed in terms of job responsibilities
• Review the employee’s background, education, training and experience.
• Determine the strengths and development needs to be discussed with the employee.
 • Identify areas that need attention during the next review period.
• Make sure that the employee has sufficient advance notice for the interview so that he has time to do his
own preparation.
• It is always useful to note down the key points on a piece of paper.

(3) Interview

• Be sincere, informal and friendly. Explain the purpose of the discussion and make it clear to the
subordinate that the interview is a two way communication.
• Encourage the employee to discuss how he appraises his own performance.
• Before discussing suggestions you have for his development, encourage the employee to tell his own plans.
• Make a record of plans you and the employee have made, points requiring follow-up.

Constituents of Performance Counseling:

The process of counseling involves 3 main sub processes:

i) Communication,

ii) Influencing, and

iii) Helping.

i) Communication:
It refers to the interaction between the superior and the subordinate. It may be the conversation in setting the goals of
the department or individual goals. It may also include the discussion during performance review or appraisal
feedback.While communicating to a person or an employee it should be kept in mind that an individual perceives
every problem or an issue differently. So, in order to make communication complete it should be clearly understood
by the recipient. People speak much more from their body gestures than words, which is a very important part of
communication.Hearing and listening are two different types of communication, which have varying degree of
attentiveness. Listening to feelings and concerns is very important for effective counseling. No process is complete
without feedback. Similarly, a communication process also involves feedback to know what the other person has
understood.
ii) Influencing:
It means to make impact on a person in a relationship. This plays an important role in counseling too. Flanders
(1970) makes distinction between two modes of influences, one called as direct mode of influence and the other as
indirect mode of influence. The direct mode of influence means restricting the freedom of others like criticism or
punishment while indirect mode of influence means to give more freedom to others like praise or recognition.Some
behavioural scientists say that change in a person can be brought through positive reinforcement and not negative
reinforcement. Influencing would involve providing encouragement and reinforcing success so that a person can
take initiatives and experiment with his new ideas.

iii) Helping:
In order to help or support a person one should know the need of an individual. A boss who shows concern for his
employees can gain their support. The main purpose of performance counseling is to feel for the subordinate and
empathies with him. Without such genuine concern, counseling may only degenerate into a ritual or fruitless
exercise.
Process of Performance Counseling:
Step I – Rapport building
Step-II – Listen with intelligence and understanding
Step-III – Avoid being judgmental
Step IV – Define the problem
Step-V – Plan the action
Step-VI – Stay alert
Step-VII – Conclude the meeting

Development of dynamic relationship through effective counseling

Demonstrate a desire to understand

When working to connect with clients, active listening is important. This step is necessary not only so counselors
can obtain the information that they need to start helping the client, but also so they demonstrate a genuine desire to
understand where the other person is coming from. When counselors use active listening skills to connect with a
client, the person feels heard and trust begins to develop.

Keep it professional

Counselors do not build friendships with their clients nor is the therapeutic relationship meant to be based on
commonalities between counselor and client. Self disclosure is a skill that requires tact and clinical intent. It never is
recommended that to build trust, counselors discus irrelevant topics (like movies or trips or watching fireworks) that
lie outside the client’s concerns. The therapeutic relationship is always for the purpose of promoting the client’s
well-being in clinical terms. Everything a counselor does requires theoretical intent and a commitment to wellness.

Most important, counselors must remain aware of their emotions and avoid counter transference: “You remind me
of” or “You make me feel.” When these experiences arise, counselors must seek assistance from other experienced
therapists, so they do not let these emotions impede their clients’ work in therapy. Counselors are not supposed to
share same experiences with clients at any level. Counselors and clients must never work in a way that resembles
friendships, and reflecting on clients’ feelings is not validating their emotions or taking sides to support them. To
prevent these serious unethical issues, counselors engage in clinical supervision for a considerable amount of time
before they can begin to see clients on their own.

Rapport Building:

This is essential to make a counseling period effective, it involves generating confidence in an employee so that he
opens up and shares his perceptions, feelings, experiences and problems. This is like an initial phase of an interview.
Firstly, the counselor should make the person feel comfortable by offering a chair, asking the secretary not to
disturb, asking for the employee’s choice for tea or coffee etc.This makes the employee relaxed. This is also called
as creating an acceptable climate. The employee starts feeling that he/she is an important person and the counselor is
paying attention to understand him/her.
Listening with Intelligence and Understanding:

Listening is an important part of counseling. Some special body gestures like maintaining eye contact during
conversation, leaning forward etc., communicate that the person is interested in listening or willing to participate in
the communication process. The counselor listens to the employee problems patiently. Here the counselor need to
revert back and make the employee feel that he has been understood in the same way as desired.
Eg- A person says, “Efforts carry no worth in this organization.”, “You do but no rewards”. This shows that the
employee is angry. Now the counselor should communicate this back to the employee by repeating the lines or
asking a question like, Do you mean to say that in spite of lot of efforts people do not get what they deserve? Such a
mirroring would help the employee to feel that he has been understood in the right way.
Avoid being Judgmental:

A counseling session helps people to understand better but not to criticize them or tell them that what they have
done was literally wrong. This makes people defensive and non receptive. Then the communication ends up being a
wasteful exercise.
Stay Alert:

The meeting ought to be planned and it should be decided how to tackle the cases and change the direction in the
light of new ideas and information.

Potential Appraisal

The potential appraisal refers to the appraisal involving identification of the hidden talents and skills of a person.
The person might or might not be aware of them.Potential appraisal is a future-oriented appraisal whose main
objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in
the organizational hierarchy.Potential appraisal is concerned with unfolding these hidden attributes. These attributes
may be in the form of analytical power, creative imagination, sense of reality, ability to see future, ability to work in
varied environment, risk propensity, initiative, being proactive, passion for high achievement, problem-solving and
decision-making skills, and so on.
All these attributes constitute potential of an individual and through potential appraisal, all these are identified. From
this point of view, potential appraisal differs from performance appraisal; the former is related to future role of an
individual while latter is concerned with his present role.
Three categories of potential are turn potential, growth potential, and mastery potential-
o Turn potential is the ability to do the work at the next level in an organizational hierarchy in the
next three to five years, or sooner.
o Growth potential refers to the ability to do work which is complex, more challenging, needs
innovative skills, pioneering expertise, etc., at the same level in the near future.
o Mastery potential is the ability to do the same type of work that is currently being done, in a
better.

Assessing the Potential of the Employee:

i. Find out the requirements of the higher job and see how the employee meets those
requirements.
ii. Does the employee have the knowledge, skills and attitude which could be utilised in the
higher job?
iii. How good are the personal performance parameters such as quality of decision making,
willingness to take up additional load/responsibilities, dependability, initiative,
imagination, open minded to suggestions and new ideas, interpersonal relationship etc.?
iv. How could the employee develop those qualities required for performing the job at higher
level effectively?
v. Follow-up – Once the management has identified the person, they could provide
necessary guidance, training and development so that the person can take higher
responsibilities and perform well in his new role.
The basic objectives of potential appraisal are to:
1. Identify the abilities of an employee in order to evaluate whether that employee is suitable for future assignments
or otherwise, and
2. Occupy higher positions in the organizational hierarchy and undertake higher responsibilities because past
performance may not be a good indicator for future and higher role.
3. Inform employees about their future roles;
4. Make suitable corrections in training efforts from time to time;
5. Inform employees about they must do something for their career prospects;
6. Help organization for suitable succession plan;
7. Improve quality and quantity of performance of an employee; and
8. Give proper feedback to the employees for their potential.
Importance of potential appraisal and development:

Importance # 1. Evaluation of Capabilities:

With the help of the potential appraisal form, the employees are judged on various performance and behavioural
parameters. Appraising employee’s potential helps to evaluate his capability to take greater challenges,
responsibilities and positions in the organisational hierarchy. It helps organization to identify the employees who are
capable of taking more challenging roles & responsibilities in future.
Importance # 2. Succession Planning:
Succession planning is a process for identifying and developing new leaders, who can replace old leaders when they
leave, retire or die. Such planning increases the availability of experienced and capable employees that are prepared
to assume these roles as they become available. Most organisations incorporate potential appraisal in their appraisal
processes for identifying and developing suitable employee base for succession planning.
Importance # 3. Career Development:
The potential appraisal results in identification of hidden talents and skills of an employee. The employee himself
might not be aware of his certain competencies. The potential appraisal aids in career development of an employee
by giving him opportunity to work on his potential capabilities.
Importance # 4. Motivate Employees:
It leads to identification of hidden talents & thereby motivates the employees to further develop their skills and
competencies. It also benefits the organization as it results in versatile workforce who can assume greater roles &
responsibilities in future.
Importance # 5. Identify Training Needs:
The potential appraisal helps the organization to identify the training needs. Such appraisal throws light on the
hidden competencies of employees which could be developed further with the help of appropriate training
programmes.
Importance # 6. Organizational Goals:
The potential appraisal concentrates on the future. It helps to create a pool of experienced and capable employees by
giving them opportunity to discover their hidden talent. It also helps employees to develop their personal interests in
alignment with the organisational goals.

The following are some of the steps required to be followed while introducing a Potential Appraisal System:
(a) Role Descriptions:
Organizational roles and functions must be defined clearly. A good potential appraisal system would be based on the
clarity of roles and functions associated with different roles in the organization. This requires extensive job
descriptions to be made available for each job. These job descriptions should spell out the various functions
involved in performing the job effectively.
(b) Qualities Required:
Based on Job Descriptions, the roles to be played by employees should be prepared (i.e. technical, managerial jobs
and behavioural dimensions)
(c) Rating Mechanisms:
Besides listing the functions and qualities, the potential appraisal system must list mechanisms of judging the
qualities of employees such as- rating by others, Use of various psychological tests and games, technical knowledge
and skills and performance appraisal records maintained.
(d) Organizing the System:
Once the functions, the qualities required to perform these functions, indicators of these qualities, and mechanisms
for generating these indicators are clear, the organization is in an effective position so as to establish and operate a
potential appraisal system.
(e) Feedback:
If the organization believes in the development of human resources it should attempt to generate a climate of
openness. Such a climate is required for helping employees to understand their strengths and weaknesses and to
create opportunities for development. A good potential appraisal system should provide an opportunity for every
employee to know the results of assessment and should also help in order to understand the qualities actually
required for performing the role for which the employee thinks he or she has the requisite potential.

Effective potential appraisal system can work well in following situations/conditions:

1. Top Management Active Support:
If, the Chairman/Executive Director of organization takes personal interests and gives active support for
implementation of the potential appraisal system, this system can work effectively. The senior, middle and junior
executives become prompt and serious to make the review process smooth, regular as they know top management
keeps records of functioning of this activity, and lapse/neglect of any officer in this regard is communicated to the
higher management.
2. Corporate Policy:
Organization should have detailed, clear policy with regard to introducing a system for reviewing potential of
employees. Absence of incorporating such system in organization’s policy most executives take it casually and do
not attach importance for its effective working.
3. Existence of Congenial and Conducive Work Atmosphere:
If, good working situation exists where mutual understanding, faith and confidence are established between boss and
subordinates, potential review may be meaningful and may make assessment proper and accurate. So, this is an
essential requisite for effective potential appraisal system.
4. Healthy Organizational Culture:
Effective potential review requires a healthy culture in the organization where climate of openness, collaboration,
trust, autonomy, pro-action exists. Such culture promotes values and develops a ‘sense of we-feeling’, ‘togetherness’
and ‘belongingness’. All this helps to make unbiased assessment of employee potential.
5. Detailed Job Descriptions:
Organization should have thorough and detailed job descriptions for each job and the functions involved in
performing the jobs. If, each job has clear job descriptions, the functions to be performed can be identified, and
through potential appraisal mechanism it can be ascertained whether employees are available to perform.
6. Qualitative Traits for Each Job Role:
For effective potential appraisal system organization should ensure that each job role has clear specification as to the
nature, extent and type of qualitative traits required to perform function of such job.
Qualitative traits may be –
i. Managerial skill and abilities
ii. Technical knowledge, skill, capabilities
iii. Human skill
iv. Conceptual skill.
If, it is clearly listed out the type of skill, level of competence etc. required for each function potential appraisal may
make accurate assessment.
7. Rational and Effective Methods Used for Ascertaining Qualitative Traits:
For implementing potential review system organization should have rational and effective methods in practice to
measure qualitative traits of an employee in a particular job. Such methods may be assessment centres, development
centres, performance review records, simulation exercises etc.
8. Existence of Practice to Conduct Feedback Programme:
To make potential appraisal system effective, organization should have a programme for giving feedback to the
employees in respect of their strengths and weaknesses and to help them develop weak areas. If, employees can
come to know about the level of potential through feedback, they can develop perception about themselves and
prepare their career planning and development programme accordingly.

Career Planning & Individual development

Effective HRM encompasses career planning, career development and succession planning. An organization without
career planning and career development initiatives is likely to encounter the highest rate of attrition, causing much
harm to their plans and programmes. Similarly without succession planning managing of vacancies, particularly at
higher levels, become difficult. There are examples of many organizations that had to suffer for not being able to
find a right successor for their key positions. With the increase scope for job mobility and corporate race for global
headhunting of good performers, it is now a well established fact that normal employment span for key performers
remains awfully short.The term career planning and career developments are used interchangeably in most of the
organizations. It is also correct that but for their subtle difference in the definitional context, their process remains
the same.
 Overview

Career planning generally involves getting to know who you are, what you want, and how to get there. Keep in
mind that career planning is a continuous process that allows you to move from one stage to another stage as your
life changes. You may even find yourself going back to look at who you are again after exploring how to get there.
Learning to negotiate the career planning process now is essential, considering most people will change careers
several times in a lifetime.

if a career plan is to be effective, it must begin with an objective. When asked about career objectives, most
managers will probably answer by saying that they want to be successful. What is success? Definition of success
depends on personal aspirations, values, self-image, age, background and other different factors. Success is
personally defined concept. In order to plan your career, you need to have an idea of what constitutes career success.

Important Elements of Career

Analyzing definitional context, it is clear that career has following important elements-

1. It is a proper sequence of job-related activities. Such job related activities vis-a-vis experience include role
experiences at diff hierarchical levels of an individual, which lead to an increasing level of responsibilities, status,
power, achievements and rewards.
2. It may be individual-centered or organizational–centered, individual-centered career is an individually perceived
sequence of career progression within an occupation.
3. It is better defined as an integrated pace of internal movement in an occupation of an individual over his
employment span.

Objectives

Career planning seeks to meet the following objectives:

1. Attract and retain talent by offering careers, not jobs.

2. Use human resources effectively and achieve greater productivity.
3. Reduce employee turnover.
4. Improve employee morale and motivation.
5. Meet the immediate and future human resource needs of the organization on a timely basis.

CAREER PLANNING PROCESS

The career planning process involves the following steps:

(i) Identifying individual needs and aspirations

Most individuals do not have a clear cut idea about their career aspirations, anchors and goals. The human resource
professionals must, therefore, help an employee by providing as much information as possible showing what kind of
work would suit the employee most, taking his skills, experience, and aptitude into account. Such assistance is
extended through workshops/seminars while the employees are subjected to psychological testing, simulation
exercises, etc. The basic purpose of such an exercise is to help an employee form a clear view about what he should
do to build his career within the company. Workshops and seminars increase employee interest by showing the
value of career planning. They help employees set career goals, identify career paths and uncover specific career
development activities (discussed later). These individual efforts may be supplemented by printed or taped
information. To assist employees in a better way, organizations construct a data bank consisting of information on
the career histories, skill evaluations and career preferences of its Employees (known as skill or talent inventory).

(ii) Analyzing career opportunities

Once career needs and aspirations of employees are known, the organization has to provide career paths for each
position. Career paths show career progression possibilities clearly. They indicate the various positions that one
could hold over a period of time, if one is able to perform well. Career paths change over time, of course, in tune
with employee’s needs and organizational requirements. While outlining career paths, the claims of experienced
persons lacking professional degrees and that of young recruits with excellent degrees but without experience need
to be balanced properly.

(iii) Aligning needs and opportunities

After employees have identified their needs and have realized the existence of career opportunities the remaining
problem is one of alignment. This process consists of two steps: first, identify the potential of employees and then
undertake career development.Programmers (discussed later on elaborately) with a view to align employee needs
and organizational opportunities. Through performance appraisal, the potential of employees can be assessed to
some extent. Such an appraisal would help reveal employees who need further training, employees who can take up
added responsibilities, etc. After identifying the potential of employees certain developmental techniques such as
special assignments, planned position rotation, supervisory coaching, job enrichment, understudy programs can be
undertaken to update employee knowledge and skills.

(iv) Action plans and periodic review

The matching process would uncover gaps. These need to be bridged through individual career development efforts
and organization supported efforts from time to time. After initiating these steps, it is necessary to review the whole
thing every now and then. This will help the employee know in which direction he is moving, what changes are
likely to take place, what kind of skills are needed to face new and emerging organizational challenges. From an
organizational standpoint also, it is necessary to find out how employees are doing, what are their goals and
aspirations, whether the career paths are in tune with individual needs and serve the overall corporate objectives, etc.

CAREER PLANNING IN AN ORGANIZATION

Career planning is the process by which one selects career goals and the path to these goals. The major focus of
career planning is on assisting the employees achieve a better match between personal goals and the opportunities
that are realistically available in the organization. Career programmers should not concentrate only on career growth
opportunities. Practically speaking, there may not be enough high level positions to make upward mobility a reality
for a large number of employees. Hence, career-planning efforts need to pin-point and highlight those areas that
offer psychological success instead of vertical growth.Career planning is not an event or end in itself, but a
continuous process of developing

Human resources for achieving optimum results. It must, however, be noted that individual and organizational
careers are not separate and distinct. A person who is not able to translate his career plan into action within the
organization may probably quit the job, if he has a choice. Organizations, therefore, should help employees in career
planning so that both can satisfy each other’s needs.
CAREER PLANNING VS. HUMAN RESOURCE PLANNING

Human Resource planning is the process of analyzing and estimating the need for and availability of employees.
Through Human Resource planning, the Personnel Department is able to prepare a summary of skills and potentials
available within the organization. Career planning assists in finding those employees who could be groomed for
higher level positions, on the strength of their performance.

Human Resource planning gives valuable information about the availability of human resources for expansion,
growth, etc. (expansion of facilities, construction of a new plant, opening a new branch, launching a new product,
etc.). On the other hand, career planning only gives us a picture of who could succeed in case any major
developments leading to retirement, death, resignation of existing employees.

Human Resource planning is tied to the overall strategic planning efforts of the organization. There cannot be an
effective manpower planning, if career planning is not carried out properly.

Career planning models:

1. Waterloo University Model

2. The SODI Career Planning Model

Given the complexity of career development and the fluidity of the world of work, we need to be able to navigate
our career paths with purpose and clarity.Law and Watts (1977) devised a simple model of career education which
has stood the test of time. This model has been changed slightly to become a career planning, rather than a career
education model and named the SODI model where the last element is ‘implementation’ rather than ‘transition
learning’, and ‘decision learning’ becomes ‘decision making and planning’.
The model encapsulates four concepts which are:
• Self-awareness – individual having knowledge about and understanding of their own personal
development. Self-awareness in a careers context involves an understanding of kind of personal resources
(both actual and potential) they bring to world.
• Opportunity awareness – an understanding of the general structures of the world of work, including
career possibilities and alternative pathways.
• Decision making and planning – an understanding of how to make career decisions, and being aware of
pressures, influences, styles, consequences and goal setting.
 • Implementing plans – having the appropriate skill level in a range of areas to be able to translate job and
career planning into reality

Questions:

Short answer questions:

1. What is performance counseling and how it’s effective for employees.

2. Write short notes on:
a) Constitute of performance counseling
b) Process of performance counseling
c) Potential appraisal

3. Mention objectives of career planning.

4. Write phases involved in action plan of an individual career development
5. Define any model of career planning.

Long answer questions:

1. Define performance counseling and process involved in it.

2. How Development of dynamic relationship through effective counseling is done ?
3. Elaborate the process involved in performance counseling.
4. Narrate objective and importance of potential appraisal.
5. What are the situations in which Effective potential appraisal system can work well .Elaborate .
6. Clearly describe process of career planning and development.
7. Briefly explain models of career planning.