1.

HUMAN RESOURCES MANAGEMENT

1.1 The practice of human resource management
The practice of human resource management (HRM) is concerned with all aspects of how people are employed and managed in
organizations.
The goal of an enterprise is to be profitable/to succeed. The manager of HR should do everything so that every employee understands this
goal.
Which activities does it cover?
HRM practice has a strong conceptual basis drawn from the behavioral sciences and from strategic management, human capital and
industrial relations theories.
The definition: HRM is a strategic, integrated and coherent approach to the employment, development and well-being of the people working
in organizations.
Which is HRM goals and purposes?
The overall purpose of HRM is to ensure that the organization is able to achieve success through people.
HRM aims to increase organizational effectiveness and capability - the capacity of an organization to achieve its goals by making the best
use of the resources available to it.
HRM must be concerned with the rights and needs of people in organizations through the exercise of social responsibility.
The goals of HRM:
1. The headings of contribution (what kind of employee behavior is expected?)
2. Composition (what headcount, staffing ratio and skill mix?)
3. Competence (what general level of ability is desired?)
4. Commitment (what level of employee attachment and identification?)
Theories of HRM:
1. Strategic theories: in any enterprise we can find it. It is the most important part of management, because when we achieve the
goal is great. If we don’t know how to achieve the goal, we should find the right way/strategy to achieve it. The manager should
be the one to find this strategy. This strategy should be in every department, as part of the main goal.
2. Descriptive theories: how we should get/find the exact person who can help our organization to get their goal.
3. Normative theories: when we find the right employee (maybe in another field/company) for our enterprise, we can use it as an
example for us.
4. Contingency theory: to prepare for unexpected situations or difficulties.
5. The resource-based view: what we can use for our enterprise. This theory is not exactly about HR but about everything. The
importance of using right what we have.
6. AMO theory = Ability + Motivation + Opportunity: these three components are important for any people. Which abilities we need
from the candidate, how can we motivate the employee (two types of motivations: money & everything else), what opportunities
can have this employee (job promotion, salary rise…).
4 aspects of HRM:
 a particular constellation of beliefs and assumptions
 a strategic thrust informing decisions about people management
 the central involvement of line managers
 reliance upon a set of “levers” to shape the employee relationship
HRM and HR have virtually replaced the term “personnel management”
HRM: people should be regarded as assets rather than variable costs.
The matching model of HRM: human resource cycle consists of 4 generic processes or functions: selection, appraisal, rewards, development.
The Harvard framework: when general managers develop a viewpoint of how they wish to see employees involved in and developed by the
enterprise, and of what HRM policies and practices may achieve those goals.
Contextual factors
The external environment: social, political, legal and economic developments and competitive pressures.
The internal environment: the type of business or organization, the size of the organization, the age or maturity or the organization, the
technology, the type of people employed, the organization’s culture.
The ethical dimension
The requirement within the organization is to:
a. treat people equally in terms of the opposites for employment, learning and development provided for them
b. treat people according to the principle of procedural/distributive/natural justice
c. avoid treating people as mere well-being of employees
d. offer as much security of employment as possible
e. provide a working environment that protects the health and safety of employees and minimizes stress
f. act in the interests of providing a reasonable balance for employees between their life and work
g. protect employees against harmful practices at work (bullying, harassment, discrimination)

1.2 Strategic Human Resource Management

Strategic HRM is the interface between HRM and strategic management.
Strategic management is the set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the
objectives of an organization.

Strategy is the approach selected to achieve defined goals in the future. Strategy has three fundamental characteristics:
1. it is forward looking
2. the organizational capacity of a firm depends on its resource capability

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 3. the strategic fit
The formulation of strategy - a logical, step-by-step affair, the outcome of which is a formal written statement that provides a definitive guide
to the organization’s intentions.
In theory, strategy is a systematic process: first we think, then we act; we formulate and then we implement.
Strategic management is a learning process as managers of firms find out what works well in practice for them.
A realistic view of strategy
 Has always been emergent and flexible - it is always “about to be”, it never exists at a present time
 is not only realized by formal statements but also comes about by actions and reactions
 is a description of a future-oriented action that is always directed towards change
 is conditioned by the management process itself
Strategic HRM is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and
integrated HR policies and practices.
The fundamental aim of strategic HRM is to generate organizational capability by ensuring that the organization has the skilled, engaged,
committed and well-motivated employees it needs to achieve sustained competitive advantage.
Strategic HRM is largely about integration and adaptation: HR management is fully integrated with the strategy and strategic needs of the
firm, HR policies cohere both policy areas and across hierarchies, HR practices are adjusted, accepted and used by line managers and
employees as part of their everyday work.
Strategic HRM is based on two key concepts, the resource-based view and strategic fit.
The resource-based view of strategic HRM: this states that it is the range of resources in an organization, including its human resources, that
produces its unique character and creates competitive advantage.
These resources include all experience, knowledge, judgment, risk-taking propensity and wisdom of individuals associated with a firm.
Strategic fit
1. Vertically, it entails the linking of human resource management practices with the strategic management processes of the
organization
2. Horizontally, it emphasizes the coordination or congruence among the various human resource management practices.
The best practice approach
Employment security, selective hiring, self-managed teams, high compensation contingent on performance, training to provide a skilled and
motivated workforce, reduction of status differentials, sharing information.
Best fit and competitive strategies
1. Innovation - being the unique producer
2. Quality - delivering high quality goods and services to customers
3. Cost leadership - the planned result of policies aimed at “managing away expense”

1.3 HR Strategies
A strategy whether it is an HR strategy or any other kind of management strategy must have two key elements:
- there must be strategic objectives (things the strategy is supposed to achieve)
- there must be a plan of action (the means by which it is proposed that the objectives will be met)
General strategies describe the overall system or bundle of complementary HR practices that the organization proposes to adopt or puts into
effect in order to improve organizational performance.
1. High-performance management aims to make an impact on the performance of the organization in such areas as productivity,
quality, levels of customer service, growth and profits.
2. High-commitment management aims at eliciting a commitment so that behavior is primarily self-regulated rather than controlled
by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust.
3. High-involvement management are a specific set of human resource practices that focus on employee decision making, power,
access to information, training and incentives.
Specific HR strategies set out what the organization intends to do in areas such as: human capital management, corporate social
responsibility, organization development, engagement, knowledge management, resourcing, talent management, learning and development,
reward, employee relations, employee well-being.
Criteria for an effective HR strategy
1. it will satisfy business needs
2. it is founded on detailed analysis and study, not just wishful thinking
3. it can be turned into actionable programs that anticipate implementation requirements and problems
4. it is coherent and integrated, being composed of components that fit with and support each other
5. it takes account of the needs of line managers and employees generally as well as those of the organization and its other
stakeholders
Typical areas that may be covered in a written HR strategy
Basic considerations, content, rationale, implementation plan, costs and benefits analysis.
The factors that create the gap between the designed and implemented strategy include:
1. the tendency of employees only to accept initiatives they perceive to be relevant to their own areas
2. the tendency of long-serving employees to cling among status quo
3. complex or ambiguous initiatives may not be understood by employees or will be perceived differently by them
4. it is more difficult to gain acceptance of non-routine initiatives
5. employees will be hostile to initiatives if they are believed to be in conflict with the organization’s identity
6. the initiative is seen as a threat
7. inconsistencies between corporate strategies and values
8. the extent to which existing processes could help to embed the initiative

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 9. a bureaucratic culture, which leads to inertia

1.4 Human Capital Management

The “human capital management (HCM)” is concerned with obtaining, analysing and reporting on data that inform the direction of value
adding people management, strategic investing and operational decisions at corporate level and at the level of front line management.
Human capital consists of the knowledge, skills and abilities of the people employed in an organization.
Human capital represents the human factor in the organization: the combined intelligence, skills and expertise that gives the organization its
distinctive character.
Human Capital consists of: intellectual capital, social capital, organizational capital.
Reasons for the interest in measuring the value and impact of human capital
a. Human capital constitutes a key element of the market worth of a company
b. People in organizations add value and there is a case for assessing this value to provide a basis for HR planning and for
monitoring the effectiveness and impact of HR policies and practices
c. The process of identifying measures and collecting and analysing information relating to them will focus the attention of the
organization on what needs to be done to find, keep, develop and make the best use of its human capital
d. Measurements can be used to monitor progress in achieving strategic HR goals and generally to evaluate the effectiveness of HR
practices
e. You cannot manage unless you measure
The factors affecting the choice of what should be reported in the form of metrics are:
1. the type of organization - measures are context dependent
2. the business goals of the organization
3. the business drivers of the organization
4. the existing key performance indicators (KPIs) used in the organization
5. the use of a balanced scorecard
6. the availability of data
7. the use of data
8. the manageability of data

2. PERSONNEL ACTIVITIES, HR DEPARTMENT AND LINE MANAGER ROLES

2.1 Personnel activities HR department
HR must observe the following ways:
- Striving for optimal exploitation of employees
- Formation of work groups, striving for an efficient way of keeping people healthy and their interpersonal relationships on a high
level
- Providing personal and social development of workers
- Ensure compliance with the labor laws
- Finding a link between human and work tasks, and constantly improving this relationship
HR department of the organization performs the following functions: conceptual, planning, information, management and coordination,
expertise and research, methodology, consulting.
HR practices are communications from the employer to the employee. The success of HR depends on how it delivers to the employees. The
HR practices are considered to be organisational actions. Line managers are responsible for the implementation of HR practices in the
organisation.

2.2 Line managers and HR department

HR specialists have the responsibility of HRM for the organisation, but the line managers have responsibility for only their areas.
The line managers are assigned with recruitment and selection, and other assigned more to the HR. There are 4 possibilities ion development
in HRM department: administrative expert, employee champion, change agent and strategic partner.
Line and HR managers are complementary because:
1. Line needs support of HR as the line proved inadequate in doing some HR work
2. Line were keen to take on the responsibility to do more HR work
3. Line do not accept devolution willingly and neither do HR
4. Line thought that doing HR work is time consuming when their priorities are pressing
5. Line see the value of having HR for advice, command and support

Relationship between HR department and line managers

The investments on HRM can give employees the feeling that the organisation values their contributions and cares about their well-being,
which will cause employees to react with attitudes and behaviour that are beneficial to the organization.
Hard and soft approach of HRM
- The hard approach, emphasizes a closure integration of HR policies, systems and activities with the business strategy.
- The soft approach, emphasizes the integration of HR policy with HR strategy, treats employees as valued assets, a source of
competitive advantage through commitment, adoptability and high quality.

2.3 The role of HR and line manager

One major aspect of HR is the delivery of HR services (or practices) such as staffing/succession planning systems, compensation systems,
and training and development systems.
4 basic roles that HR plays:

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 1. Management of Strategic Human Resources
2. Management of Firm Infrastructure
3. Management of Employee Contribution
4. Management of Transformation and Change
5 relations-oriented leadership behavior components of HR department: Developing, Empowering, Consulting, Supporting and Recognizing.
Options for organizing HRM functions
1. Integration: HR department plays the following roles in integrating HR issues and functions.
a. Involving HR specialists in the main policy making level of the organization
b. Having a written personnel strategy
c. Involving HR specialists in the development of business strategy from the very beginnings of the strategy formulation
process
d. Linking business strategy with HR policies and practices
2. Assignment: line managers are related responsibilities.
a. Placing right person in the right job
b. Orienting new employees
c. Providing under job training
d. Improving job performance of subordinates
e. Gaining creative operation and developing smooth working relationship

2.4 Implications for practice

- If line managers engage themselves to take on their HRM role, they can be a powerful partner of the HR department in enhancing
commitment, eventually individual and firm performance.
- Since line managers are no HR specialists, knowledge of HR practices and procedures, or leadership skills, may be lacking.
- In order to optimize the positive effects on employee commitment, it may be useful to develop and train HR and leadership skills.

3. HUMAN RESOURCES PLANNING, JOB DESIGN AND ANALYSIS

3.1 Job Analysis
Job Analysis involves determining the relative importance of the duties, responsibilities and physical and emotional skills for a given job.
Job analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding compensation and benefits
packages, performance appraisal, analysing training and development needs, assessing the worth of a job and increasing personnel as well as
organizational productivity.
Job Requirements consist of:
1. Job Content: it contains information about various job activities included in a specific job. It is detailed account of actions, which
an employee needs to perform during his tenure.
2. Job Context: refers to the situation or condition under which an employee performs a particular job.
3. Job Requirements: these include basic but specific requirements, which make a candidate eligible for a particular job.
The parameters depend upon: the type of job, designation, compensation grade and responsibilities and risks involved in a job.
Most common methods of Job Analysis:
1. Observation Method (direct observation, work methods analysis, critical incident technique)
2. Interview Method
3. Questionnaire Method

3.2 Job Description and Job Specification

Job Description includes basic job-related data that is useful to advertise a specific job and attract a pool of talent. It includes information
such as job title, job location, reporting to and of employees, job summary, nature and objectives of a job, tasks and duties to be performed,
working conditions, machines, tools and equipment’s to be used by a prospective worker and hazards involved in it.
The main purpose of job description is to collect job-related data in order to advertise for a particular job.
Job Specification is a written statement of educational qualifications, specific qualities, level of experience, physical, emotional, technical
and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands.
Purpose of Job Specification helps recruiting team of an organization understand what level of qualifications, qualities and set of
characteristics should be present in a candidate to make him or her eligible for the job.
Job Design aims at outlining and organizing tasks, duties and responsibilities into a single unit of work for the achievement of certain
objectives. It also outlines the methods and relationships that are essential for the success of a certain job. In simpler terms it refers to the
what, how much, how many and the order of the tasks for a job/s. Job Design essentially involves integrating job responsibilities or content
and certain qualifications that are required to perform the same. It outlines the job responsibilities very clearly and also helps in attracting the
right candidates to the right job.
Steps involved in job design:
- What tasks are required to be done or what tasks are part of the job?
- How are tasks performed?
- What amount of tasks are required to be done?
- What is the sequence of performing these tasks?
1. Checking the work overload
2. Checking upon the work under load
3. Ensuring tasks are not repetitive in nature
4. Ensuring that employees do not remain isolated
5. Defining working hours clearly

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 6. Defining the works processes clearly.
Approaches to Job Design
1. Human Approach of job design laid emphasis on designing a job around the people or employees and not around the
organizational processes. According to it, jobs should gratify an individual’s need for recognition, respect, growth and
responsibility.
2. Engineering Approach introduced the idea of the task that gained prominence in due course of time. According to it, the work or
task of each employee is planned by the management day in advance.

3.3 Human Resource Planning

HRP is the process by which a management determines how an organization should make from its current manpower position to its desired
manpower position. Through planning a management strives to have the right time to do things which result in both the organization and the
individual receiving the maximum long range benefit.
Features of HRP
1. Well defined objectives
2. Determining human resource needs
3. Keeping manpower inventory
4. Adjusting demand and supply
5. Creating proper work environment
Importance of Manpower planning
 Key to managerial functions
 Efficient utilization
 Motivation
 Better human relations
 Higher productivity
Manpower planning is advantageous to firm in following manner:
1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labor costs as excess staff can be identified and thereby overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop
those talents.
5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and
they can be utilized in the best manner.
6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.
Steps in manpower planning
1. Analysing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment programmes
4. Design training programmes
Techniques of Human Resources Planning
1. Forecasting human resources needs (Demand)
2. Short-term forecasting
3. Long-term forecasting
4. Linear Regression
5. Forecasting human resources supply
6. Balancing human resources supply and demand

4. ACQUISITION, SELECTION AND ORIENTATION

4.1 Definitions
 Recruitment: a process of creating a group of capable people applying for a job in an organization.
 Selection: a process in which managers and others use specific methods to select one or more people from a group of candidates
who are likely to succeed in work, achieve goals from managers, and meet legal requirements.
 Orientation (adaptation, onboarding): planned introduction of new employees to work, among co-workers and into the
organization.

4.2 Relation to work performance

Recruitment and Selection are important to create a positive psychological contract.
- The psychological contract establishes the employee’s personal commitment to the organization and his work motivation)
Orientation supports a faster adapting of new employees.
- It has a positive effect on increasing productivity and reducing turnover. The turnover of new employees usually exceeds the
turnover of employees who have been employed for at least one year.

4.3 Acquisition
Objectives and Stages of Acquisition
Objective: satisfy the organization’s personnel / HR requirements for the number and quality of employees with minimal costs.

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Stages: Define job requirements + Determine whether internal or external human resources + Recruitment – attract candidates + Selection of
candidates
Define acquisition requirements
Framework diagram: Business strategy of company + Personnel / HR plan + Recuitment program.
Content of acquisition: Job description (role profile) + Work requirments specification (minimum) + Terms of employment.
Optimal level of work requirments
- Possibilities of the employer to satisfy the expectations of the job seeker.
- The employer’s ability to motivate employees (to satisfy their needs).
- Examples of classification of work requirements: Seven point plan + Fivefold grading system.
Seven Point Plan
It requires a longer history.
1. Medical appearance, physical impression, behaviors, speech
2. Education, qualifications, experience
3. General intelligence
4. Specific skills (manual dexterity, verbal expression)
5. Hobbies
6. Acceptability of nature, influence on other people, self-confidence, perseverance, reliability
7. Circumstances in personal / family life, economic circumstances
Fivefold Grading System
Easier, emphasizes dynamic career development, competency-based approach, focused more on employee than work.
a. Influence on other people’s health, physical appearance, behavior, speech
b. Education, qualifications, experience
c. Innate abilities, speed of understanding and ability to learn
d. Motivation
e. Adaptability, emotional stability, the ability to cope with stress, emotional intelligence
Advantages and disadvantages of internal recruitment
ADVANTAGES DISADVANTAGES
- Increases employee morale - Corporate blindness and lack of new ideas
- Can start quickly - Displeasure / resistance among employees
- Increases the likelihood that the selection will be good - Increased recruitment and training efforts arise if the position
- Less expensive than own or outsourced external recruitment is filled internally on the basis of promotion and the vacancy
- Less expensive time and money for training has to be filled by a new staff member
- Motivates talent to stay in the organization (career
development)
Advertising
INTERNAL SOURCES EXTERNAL SOURCES
- Publication of a job offer - Direct contract of interested parties (no advertising)
- Intranet - Interested parties address blindly
- Substitutes / databanks / personnel reserves - Employee recommendation
- Recommendations of superiors / HR department - Educational institution
- E-recruitment / employer career sites
- Job fairs
- Traditional media (message boards, newspapers, radio, TV)
- Outsourced recruitment / recruitment agencies
Requirements for effective recruitment
a. Get a sufficient number of candidates and distinguish exactly who is suitable and who is inappropriate.
b. Use cost-effective advertising, choose appropriate sources for addressing and recruitment methods.
c. Maintain the good name of the employer, treat all candidates fairly and honestly.

4.4 Selection
Factors influencing selection
ORGANIZATION INTERNAL ENVIRONMENT EXTERNAL FACTORS
- Organization size - Labor law
- Complexity of management processes - Size, structure and availability of the local labor market
- Technological equipment, the use of ICT in personnel
proecesses
Selection criteria: formal education, experience and past work performance, personaility traits and characteristics, physical characteristics.
Reliability of selection criteria (reliability) – how stable or repeatable measurement is under different testing conditions.
Validity criteria – what are the selection tools, how well they measure.

4.5 Orientation
Orientation goals: Provide new employees with information about the employer, team and work so that they can work and add value as soon
as possible.
- Obtain a commitment to the employer
- Reduce the worries / fears of the new employee

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 - Help understand the expectations of the employer
- Convey what the new employee can expect from the job and the employer
Place of orientation in employee socialization
Orientation: the initial phase of the process of assimilation of a new employee and is part of his continuous process of socialization in the
organization.
Boarding and launching + Orientation + Succession planning + Employee promotion + Internal employee mobility / employee transfers.
Orientation purpose
a. Reduce the initial training costs associated with training for a new job.
b. Reduce the worries of any employee when it gets into a new unfamiliar situation, experience anxiety / fear that may impair their
ability to work into a new job. Good orientation helps reduce the worries caused by an unfamiliar situation and helps set rules for
conduct and management so that the employee dies not have to experience the stress of guessing.
c. Reduce employee turnover. Employee turnover increases when they feel they are not recognized or get into positions where they
cannot do their job. Orientation shows that the employer values the employee and helps provide the tools necessary to
successfully manage the work.
d. Saves time of superior and co-workers. The better the orientation, the less they will have to devote time to employee learning.
e. Create realisitic job expectations, positive attitudes and job satisfaction. It is important that employees learn as quickly as possible
what is expected of them and what they can expect from others, as well as learn about the values and attitudes of the organization.
While people can learn from experience, they make a lot of mistakes that are not necessary and are potentially harmful.
Orientation vs. Onboarding
ORIENTATION ONBOARDING
- One-day, usually lasts several hours. - Ongoing process; the longer the better.
- Information about the employer to new employees, give an - Information tailored to the employee to be relevant to his
annual report, orientation package, dictionary of terms typical position.
for the given field. - Assimilate new employees into the corporate culture and
- Information for the new employees necessary for the stimulate their commitment to the employer.
performance of work.

5. WORK ORGANIZATION AND WORKING CONDITIONS

Work organization deals with the organization of relationships in the work system in order to achieve its good efficiency.
Working conditions are a set of objective conditions and relationships that directly or indirectly affect the working system.
Work organization goals: high performance, good output quality, low cost, short lead times, high flexibility (specially time flexibility),
favorable working conditions.

5.1 Division of labor

The process of creating tasks for individual employees and working groups and determining their interrealtionships.
Division of labor forms
- Functional division of labor: main process, auxiliary and service processes, management processes.
- Technological (professional) division of labor: operational and subjectual.
- Qualification division of labor: in a professional group, it is the assignment of work tasks according to the level of qualification of
employees.
Division of labor requirements
- Economical: to achieve the lowest possible labor costs per unit of output, short lead times and good use of working hours and
employees’ qualifications.
- Physiological and psychological: load on the human body in the work process, monotony of work (movement and task).
- Social: the possibility of employee development during the work process.

5.2 Workflow
Work tasks (operations) are interconnected in the work process in terms of material, time and space.
A workflow in the narrower sense is a way of working in an operation (sequence of work tasks).
Work requirements according to the workflow
- Physically strenuous work: physical limits for men and women.
- Work mainly focused on movement coordination: principles of movement economics, simple operations, monotony of work.
- Work mostly oriented sensory and mental: the range of information that a person is able to receive, process and then act on.
- Managerial and creative work: unprogrammed decision making, depends on experience, intuition and personality traits.

5.3 Standarization of work

Determine the required performance of the individual or working groups.
Labor consumption standards – functions
- Management tool (for planning, designing, determining the number of employees, assigning work tasks)
- Stimulation tool (employee evaluation, remuneration)
- Reserve identification (comparison with the performance of competing companies)
- Protection of workers against excessive stress (hygienic standards)

5.4 Organization of working hours

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Length and method of scheduling working hours and rest periods.
Working regime
Distribution of working days per week, length and cycle of work shifts and time placement for works shifts.
Operations: intermittent (even working hours, uneven working hours, one-shift, two-shift and three-shift mode) / continuous (shift rotation –
rotary shifts, interlaced shifts).
Flexible working modes: different length of operating and working hours, settlement of set and worked time in a certain period of time,
reducing the scope of overtime work, more workers than jobs, greater time sovereignty of the employee compared to the traditional work
regime.

5.5 Working environment

Physical, chemical, biological, social and cultural factors that affect workers during the work process.
An unfavorable work environment increases the workload, reduces work performance and the employee tends to be incapacitated for work
and fluctuate.
Working environment factors: spatial solution and color adjustment of the workplace, lighting, microclimatic conditions, pollutants in the
working atmosphere, noise.

6. WORK PERFORMANCE MANAGEMENT AND EMPLOYEE EVALUATION

6.1 Purpose
Evaluations allow you to integrate the performance management process. They help planning to address gaps and reinforce things that are
being done right. Evaluations identify employee strengths and weaknesses and are used to plan careers, used to decide on wage increases,
usually incentive wages.

6.2 Definitions
- Performance management: a process used by employers to ensure that employees work in the direction of the organization’s
goals.
- Employee evaluation: evaluates the current or past performance of the employee in comparison with the standard performance, at
a certain date.

6.3 Performance management vs. Evaluation

EMPLOYEE EVALUATION PERFORMANCE MANAGEMENT
- Evaluation interview once per year - Continuous performance monitoring, ongoing feedback and
- Monolithic system: from top to bottom multiple meetings.
- Focus on quantitative targets (SMART) - Flexible process based on dialogue
- Frequent connection with the wage incentive component - Focus on both quantitative goals and values and actions
(personal evaluation) - There is not always a direct link to incentive remuneration
- Bureaucratic system with extensive administration - Minimum level documentation
- Use of classification, tendency to score performance - Performance classification is unusual or minimal
- The main role in the employee evaluation system is played - The main role is played by the direct superior
by the personnel department.
Management philosophy
Business owners and top management demand that employers set goals and that employees achieve ever-increasing quality, reduce costs,
deliver on time, through growing demands on employees.
To constantly improve their performance from one evaluation period to another.

6.4 Performance management

The trend is to move from employee evaluation to performance management, continuous improvements in work performance, the need to
make realistic assessments.
Performance management process
Direction sharing + clarification of the role + agreement on objectives + setting a development goal + continuous performance monitoring +
continuous feedback + coaching and support + work performance evaluation + recognition and reward (financial) + workflow, control and
return.

6.5 Employee evaluation

SMART goals creation
Recommendations for setting effective goals: should be a challenge, a motivator to work. It is effective to promote participation and
agreement on goals.
Roles in performance evaluation
Evaluators / line managers usually do up-to-date assessments. Therefore, they must ve familiar with the basic assessment techniques, must
understand and prevent problems that may harm the evaluation, must know how to conduct a fair evaluation.
Personnel / HR department provides advice and service on job performance evaluation policies, assists with advice and assistance in the
application of this practice, prepares forms and timetables and ensures that all departments carry out evaluations, is responsible for training
direct superiors (evaluators) to improve their evaluation skills, is responsible for monitoring the evaluation system to ensure that the
evaluation criteria comply with the legislation (equal treatment) and keep up to date.

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Work performance evaluation procedure
- Defining work: ensure that the manager and subordinate have agreed on job responsibilities and performance standards.
- Work performance evaluation: compare the actual performance of the subordinate with the standards that have been set.
- Providing feedback: discuss the subordinate’s performance and progress, if requested, and develop a training and development
plan.
Evaluation criteria
- Work results (amount of work, quality of work).
- Work behavior (tasks acceptation willingness, own initiative, instruction adherence and also self-reliance, creativity and
reliability).
- Social behavior (partnership willingness, style of behavior and superiors’ managing).
Negatives of employee evaluation systems
- Motivation of managers to moderate / lenient evaluation: fear of looking for a new employee and hiring him, unpleasant reaction
of the evaluated, the evaluation process in the organization is not transparent.
- Risks arising from leniency / moderate assessment: the employee loses the opportunity to improve before he has to change jobs,
workplace conflicts or litigation during dismissal, including inaccurate performance appraisal.
Recommendations for solving problems with performance evaluation
a. Learning and understanding potential problems on how to solve each of them is mainly about interpersonal misunderstandings
and conflicts.
b. Use the right assessment tool. Each method has its advantages and disadvantages.
c. Train direct superiors to reduce assessment errors such as averaging, halo effect and leniency.
d. Record critical cases (positive and negative) if they occur.

6.6 Methods in employee evaluation

Work performance evaluation methods
What to measure? Work results (quality and quantity), personal competence, achieving the goal.
How to measure? Goal Management (MBO), work performance testing and observation, evaluation questionnaire, evaluation reports (verbal
evaluation)…

7. EMPLOYEE TRAINING AND DEVELOPMENT

7.1 Introduction
Why is employee training and development important? Competition, improving quality and customer service, cost reduction, increase
productivity, adaptation to rapid changes in technology and work environment.
Training vs. employee development
TRAINING (EDUCATION) DEVELOPMENT
- Tied to the job position, its requirements for the employee - Help employees develop and be able to handle the demands
and the employer’s efforts to help improve the employee’s of future work
work performance - Individual approach, progress in work and career
- Immediate use - Long-term and ongoing process
- Short-term and periodic process

7.2 Educational process

Systematic education phases
- Identification of educational needs
- Planning and budgeting
- Implementation of education
- Evaluation of the educational process
Business education process
Identification of educational needs  providing training participants  learning environment creation  selection of educational methods
and teaching tools  realization of education  ensuring the transfer of education  evaluation of education.
7.2.1 Identification of educational needs
- Determine for whom and what the content of education should be: new or existing employees.
- Predictable areas of need: areas where the need arises from observation and control or in response to unexpected problems or changes.
- Organization analysis: organization strategy and goals, budget for corporate education, results of customer surveys, selection of jobs /
positions.
- Work / task analysis
- Employee evaluation: analysis of personality characteristics, work performance data, feedback.
7.2.2 Providing training participants
- Define the basic rules for addressing and involving participants on education
- Address the main obstacles to the smooth running of education
- Education program design
- Conditions for adult education
- Ability and motivation to learn
- Background for participants and trainers (understand the benefits of education, usability of education in practice, understanding the needs
and goals of education, interest in careers).
7.2.3 Learning environment creation

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- Learning requires space for practical exercises (provide enough time to work in the classroom, divide the lesson into several days, expect to
be repeated).
- Conditions suitable for education (to teach a substance in whole or in parts, combine partial learning with all learning, mass learning or
divided into parts, provide error connection feedback).
7.2.4 Selection of educational methods and teaching tools
Controlled education, while performing work in the workplace or out of work or outside the organization.
Uncontrolled education, while performing work in the workplace or out of work or outside the organization.
7.2.5 Realization of education
 Induction training (when adapting a new employee or on return to work after a long absence from work)
 Retraining when changing work tasks
 Education (knowledge update, improvement of qualification, qualification upgrading)
7.2.6 Ensuring the transfer of education
Application of new knowledge, skills and abilities at work. Consider a workplace climate for the transfer of learners, before, during and after
training.
It’s appropriate to ask the employee for his view on the usefulness of training to perform certain work tasks: whether he/she performs these
work tasks + how often he/she performs them + to what extent he/she performs them.
7.2.7 Evaluation of education
Difficult to quantify the benefits of education, Kirkpatrick’s four-level model (reactions, learning, behavior, results), evaluation (inquiry to
participants after the end of the training program, knowledge test before and after the education program, behavior change, change in work
performance).
Proportion model 70/20/10
A model of the proportions of the methods used for education and development.
70% learn due to challenging job challenges (on-the-job training)
20% learn through relationships that help them develop (feedback, coaching, mentoring)
10% formal education / lectures and self-study

8. CAREER DEVELOPMENT
8.1 Introduction
Career development is important for organizations to create and maintain an environment of sustainable and permanent learning. The biggest
challenge for companies is how to balance the careers of existing employees with the recruitment of employees with new competencies. The
traditional career concept is influenced by the growing use of terms, such as career development based on participation in project solutions.
Career concept changes affect: motivation of employees to participate in training programs, the impacts that employees expect from their
participation in training, what training programs do employees choose, how and what employees need to know.

8.2 Career concept

TRADITIONAL CAREER
- Sequence of positions held within the profession
- Context of mobility is within the organization
- Characteristics of the employee are evaluated
INDIVIDUALIZED CAREER
- Frequent changes based on changes in the individual or
changes in the work environment
- Employees have the main responsibility for managing their
careers
- Based on self-management in order to achieve an inner sense
of success at work (from the perspective of the individual)

8.3 Career development

It is a process in which employees:
- Are aware of their own interests, values, strengths, and weaknesses
- Obtain information about job opportunities in the company
- Set career goals
- Create action plans to achieve career goals

8.4 Importance of career development

 Unsuccessful motivation of employees to plan a career can mean for the company: lack of staff to fill new positions, lower
commitment of employees, inefficient use of funds intended for staff training and development.
 Weaknesses in career management can cause employees: frustration, feelings of underestimation by the company, inability to find
a suitable job when a change of job is necessary due to mergers and acquisitions, redundancies or restructuring.

8.5 Career motivation

Career motivations is determined by:
a. Energy what employees want to invest to their careers
b. Self-awareness of the individual in the direction in which he wants to lead his career
c. The ability to maintain energy and maintain direction despite the obstacles that enter an employee’s career path
Aspects of career motivation:
- Career resilience / adaptability: the extent to which employees are able to cope with the problems that affect their work.
- Career understanding: how many employees know their interests, competencies, strengths and weaknesses, awareness of how
relevant these perceptions are to their career goals.

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 - Career identity: the degree to which employees define their personal values according to the work performed.

8.6 Value of career motivation

VALUE FOR COMPANY VALUE FOR EMPLOYEE
Career resilience: Understanding careers and career identity:
- Innovation - Awareness of strengths and weaknesses of their knowledge,
- Employees adapt to unexpected changes skills and abilities
- Commitment to company - Participation in learning activities
- Pride at work - Deal with worse working conditions
- Avoid obsolescence of knowledge

8.7 Career development model

Career development is a process in which employees move forward and go through a series of phases. Each phase is characterized by a
different set of development tasks, activities and relationships.
Career phase: field survey, demonstration of work competencies, maintaining work competencies, slowing down the work connection.

9. CAREER MANAGEMENT PROCESS

9.1 Components of the career management process
a. Self-evaluation: employee information is used to determine their career interests, values, attitudes and behavioral trends.
Psychological tests are often used.
b. Reality control: employees receive information on how the company evaluates their work competencies and where they can apply
them in the company.
c. Goal setting: the process by which employees develop their short and long-term career goals. They are usually discussed with the
manager and written in the development plan.
d. Event planning: employees determine how they want to achieve their short and long-term career goals.

9.2 Principles of career management system

- The system is a response to business needs or is intended to support business strategy.
- Employees and managers are involved in creating the system.
- Employees are encouraged to be active in managing their careers.
- The system is continuously evaluated with the intention of improving it.
- Organizational units can adjust the system to their specifics.
- Employees must have access to career management information resources.
- Senior management supports a career management system.
- Career management is connected with other HR processes (acquisition, education, performance management).
- The system generates a group of diverse talents.
- All managers have access to information on career plans and talents.

9.3 Roles in career management

Employer role in career management: employer is responsible for the resources needed for successful career planning of employees (career
workshop, informing about career development opportunities and job offers, career planning guides, career counseling, career / job paths).
ROLE RESPONSIBILITY
Coach Probes problems, interests, values and needs, listen and clarify concerns.
Evaluator Provide feedback, explain company standards and requirements, explain job responsibilities.
Adviser Create offers, share experiences and relationships, help set goals, make recommendations.
Administrator Link to career management resources, follow a career management plan.
Employee role
a. Take the initiative and ask superiors and co-workers about their strengths and weaknesses in knowledge, skills and abilities.
b. Identify your stage in career development and development needs.
c. Look for opportunities and challenges that will affect career development.
d. Collaborate with employees from various work groups inside the employer and outside the company.
e. Become visible through good work performance.
HR manager role
- Provide information or advice on education and development opportunities.
- Provide services such as tests to determine an employee’s values, interests, knowledge, skills and abilities.
- Help prepare employees for job search.
- Offer counseling on career issues.
Career management system evaluation
Career management system is evaluated with the intention of determining the needs of employees and business.
Two outputs of the career management system are evaluated: reactions of employees and managers who use the system + career management
system results.
Evaluation of the system is according to the degree of achievement of its goals.

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