HUMAN RESOURCE MANAGEMENT Meaning HRM – a process of bringing people & organization together so that the goals of each are

met. It’s an art of procuring, developing & maintaining competent work force to achieve the goals of an organization in an effective & efficient manner. It’s concerned with most effective use of people to achieve organizational & individual goals, it’s a way of managing people at work so that they give their best to the organization.

Nature of HRM
• Pervasive Force (its present in all enterprises & all levels of management) • Action Oriented (emphasis on action, rather than on record keeping, written rules or procedures) • Individual Oriented (it helps employees to develop their potentialities & motivates employees by the process of recruitment, selection, T & D and wage policies + benefits)

• People Oriented (it puts people on assigned jobs for producing good results & hence resultant gains are used to motivate & reward people for better productivity) • Development Oriented (all developmental activities performed to improve the potentiality of employees i.e T & D – improving quality & skills) • Integrated Mechanism (it builds cordial relationship b/w people at various levels & also integrates the human assets in the best possible manner)

• Comprehensive Function (HRM is a compiled depiction of organizational decisions & its impact on workforce i.e developing potentialities of employees resulting in maximum job satisfaction + good results in the organization) • Auxiliary Services (HR dept assist & advice operational managers for effective results & hence HR manager is a specialist adviser)

• Interdisciplinary Function (it’s a multidisciplinary activity utilizing knowledge & inputs drawn from psychology, economics, sociology etc) • Continuous Function (it requires a constant alertness & awareness of HR approaches & its significance in the routine operations)

Scope of HRM
• Personal aspect Concerned with MPP, recruitment, selection, placement, transfer, promotion, T&D, retrenchment, remuneration, incentives, productivity etc. • Welfare aspect Concerned with working conditions & amenities i.e cafeteria, lounge, transport & medical aids, education, health & safety, recreational facilities.

• Industrial relations aspect Concerned with union mgt relations, joint consultation, collective bargaining, grievance & disciplinary procedures, settlement of disputes etc.

Significance of HRM
HRM in an organization helps in multifarious (diverse) ways • At enterprise level Good HR practices helps in attracting & retaining best people in the organization for better productivity & planning process alerts company to the kind of personnel required in an organization.

• At individual level It helps employees by; promoting teamwork & team spirit among employees, providing growth opportunities to its people by performance appraisals & other basis, it allows people to work with diligence & commitment. • Societal level Society on a whole is a major beneficiary of good HR practices, employee opportunities multiply, scarce talents put to optimal use.

Objectives of HRM
• To help the organization reach its goals • To employ skills & abilities of the workforce efficiently (prime objective of HRM – to make its personnel highly productive benefiting customers & employees) • To provide the organization with well trained & well motivated employees (HRM demands from motivated employees – maximum efforts & better results on which assessment is performed & remunerated accordingly)

• To develop & maintain quality of work • To increase to the fullest of employees job satisfaction & self actualization (it prompts & stimulates employees at work to realize their potentials to reach the goals effectively & efficiently) • To communicate the HR policies to all employees

• To help maintain ethical policies & behavior (to practice morality in mgt to prepare people for change, dealing with conflicts etc.) Therefore, HRM should try to attain economically & efficiently the organizational goals & objectives, serve to the highest possible degree of individual goals & pursue the general welfare of the community.

Human Resource Functions
• Ensuring organization’s requirements & correlating the needs • Carrying out job analysis to identify the specific requirements of individual jobs within the organization • Forecasting HR requirements necessary for the organization to achieve the goals • Developing & implementing a framework to meet the requirements

• Recruiting & selecting personnel to fill specific jobs within the organization • Orienting & training employees • Designing & implementing organizational development programs • Designing systems for performance appraisal of individuals within the organization • Assisting employees in developing career plans • Designing & implementing the compensation system for all employees

Systems approach to HRM
A system is a set of a interrelated but separate elements or parts working towards common goal.
Product Subsystem

Finance Subsystem

HR Subsystem Procurement, T&D, Appraisal, Rewards, Compensation etc

Marketing Subsystem

Technical Subsystem

(HRM – As a central subsystem in an enterprise)

Challenges faced by HRM
• Increasing size of workforce (as organization are increasing in size & complicity – no. of people working increases & hence managing the workforce become a serious problem & challenging task, since the workers are more conscious of their rights) • Changing psycho – social system (earlier traditional concept of being autocratic in performing technical functions are now transformed into democratic humanistic system through human participation in technical operations)

• Satisfaction of higher level needs (evolving appropriate techniques & strategies to motivate workers & getting the work done) • Equalitarian Social System (organizations of future will give a lower emphasis on hierarchical structure & on a long run will eliminate these & move towards equalitarian social system) • Technological advancements (unemployment resulting from modernization & technological advancements will be liquidated by properly assessing man power needs & training of redundant employees in alternate skills)

• Computerized information system (it has an increasing impact on co-ordination in various strategic levels) • Changed in legal environment (to meet with increasing changes in the legal environments, adjustments could be done by utilizing the HR personnel) • Management of human relations (changes in the system coupled with rising educational levels would induce higher degree of participation in managerial decisions)

Determinants of HR Approaches
• Globalization of business • Social nature of man • Emphasis on group activity & team work • Inter cultural relations • Technological developments • Increasing conflict in organization • Personnel relations • Social change

Concepts of HR approaches
• Primary work group • Inter-relatedness of personality • Common goals & growth cohesiveness • Carrying organization • Organizational culture of trust & understanding • Human motivation

Environment of HRM
• Late 1970s people realized productivity depends on people. “Personnel came to be called as human resource”. • Sharing global thinking Indian managers & behavioral scientists accepted & introduced certain models & theories. • HRM basically refers to a balanced interaction b/w two sets of expectations. • A HRM environment ensures harmony between superiors & subordinates.

• However, a healthy corporate philosophy ensures uniform policies binding all levels of an organization & quite essential for a good HRM. • In order to achieve an effective HRM strategy its necessary to integrate HRM + HRD + IR + OD. • HRM strategies of 21st century emphasizes on better individual organization interface & organizational effectiveness than on personnel success.

• Environment is an important variable in the HRM model. • It describes all those forces, which have their bearing on the functioning of the HR dept. • The forces are political - legal, economic, technological, cultural which are popularly known as external environment and unions, organizational culture & conflict, professional bodies are popularly known as internal environment of HR dept.

External Forces
It includes political - legal, economic, technological & cultural factors the influence of which on HRM is considerable. Political – Legal Environment: It covers the impact of political institutions on HRM dept. In a democratic political setup there are 3 institutions which constitutes political environment. • The Legislature (law making body) • The Executive (law implementation) • The Judiciary (watchdog)

The interface b/w political environment & labour takes places through an array of labour laws. The issues are related to; • Terms & conditions of employment • Working conditions • Payment of wages • Provisions relating to industrial disputes All HR activities are affected in one or the other way to the above mentioned issues. Eg: HR planning, Recruitment & Selection, T & D, Remuneration, IR etc.

Economic Forces: It refers to all those economic forces which has a bearing on the HR function. Growth strategy, industrial production, agriculture, population, national & per-capita income, money & capital markets, suppliers, competitors etc are the components of economic environment. Another core component of Economic Environment is Globalisation.

Technological Forces: How does technology affect HR functions? • Advent of technology persuades a job to be of more intellectual nature & upgraded function. • The introduction of new technology dislocates workers unless they become user friendly with new machines.

• User-friendly personnel jobs become challenging & rewarding. • With upgrading jobs, technology has its impact on human relations. • Job holders will become highly professionalise & knowledgeable

Cultural Forces: Culture refers to the complexity which includes knowledge, belief, art, morals, customs etc acquaint by an individual as a member of a society. Culture influences HR function by: • Culture creates type of people who become member of an organization • Attitude of workers towards work is a result of their cultural background

• Time, dimension influencing HRM has its roots in culture (Time = Orientation on past, present & future) • Finally work ethics, effort-reward expectations which are a significant input determining individual behavior stands as a result of culture

Internal Forces
Prominent among them are: Unions: • A trade union may be understood as an association of workers formed to protect their own individual interest. • All HR activities are carried out in consultation with union leaders.

Organizational Culture & Conflict: All organizations have its own culture. Organizational Culture reflects the past & shapes the future. There are often conflicts b/w organizational culture & employees attitudes. Conflict arises because of following factors: • Personal Goals vs Organisational Goals • Personal Ethics vs Organisational Ethics • Rights vs Duties • Obedience vs Self Respect

• Discipline vs Autonomy • Self Confidence vs Arrogance • Authority vs Accountability • Leadership vs Followership • Delegation vs Abdication

The above are not hypothetical conflicts, they occur daily in organizations. HR depts. are expected to develop & enforce policies in these areas.

Professional bodies: Bodies like NIPM (National Institute of Personnel Management) in connection with HR experts organizes orientation programmes, seminars & conferences etc. And those institutes also offers PGDs.

Knowing the Environment Three major concepts are evolved. 3. Enacted Environment (Organization creates own environment out of external environment) 4. Domain & Domain Consensus (domains specifies a territory of its own for an organization. It comprises stake holders, owners, employees, customers, government etc. Domain consensus is formed when all these groups agree upon the domain of the organization.) 5. Task Environment (it specifies range of products to be offered, the technology to be employed & strategies to be used to counter competition)

Human Resource Planning
• HRP – Process of forecasting an organization’s future demand & supply of the right type of people in the right number. • HRP – Subsystem in the total organizational planning. • HRP – Facilitates the realization of the company’s objectives by providing the right type & right no. of personnel. • HRP – Called as Manpower Planning, Personnel Planning, Employment Planning.

Definition: HRP
• Includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available. • It must ensure that personnel supply equals personnel demand at the appropriate point in the future. • It is a process by which an organization ensures that it has the right no. & kind of people, at the right place, at the right time, capable of efficiently & effectively completing those tasks that will help the organization achieve its overall objectives.

Definition: HRP (contd…)
• HRP translates the organizations’ objectives & plans into the no. of workers needed to meet those objectives. • Without a clear cut planning, estimation of an organizations human resource need is reduced to mere guess work.

Importance of HRP
1. Future personnel needs • Planning helps to determine future personnel needs. • Eg. Surplus / Deficiency in staff strengths is the result of the absence of or defective planning. • All public sector enterprises find themselves overstaffed now as they never had planning of their personnel requirements & the factor not widely known is the absence of succession planning in most public sector units.

• Absence of succession planning has resulted in a situation where many organizations function without chief executive. • The anatomy of surplus labour, Juxtaposed with the lack of top executives stems from the absence of a defective HRP)

2. Coping with changes • HRP enables an enterprise to cope with changes in competitive forces, markets, technology, products & govt. regulations. • Such changes generate changes in job content, skill demands & no. & type of personnel.

3. Creating highly talented personnel • Jobs – getting highly intellectual & incumbents are getting vastly professionalized. • HR manager must use his ingenuity to attract & retain qualified & skilled personnel. • Job hopping creates frequent shortages in the organization. • MPP helps to prevent such shortages. • Further more technology changes will often upgrade some jobs & degrade others.

4. Protection of weaker sections • In matters of employment & promotions, sufficient representation needs to be given to SC/ST candidates, physically handicapped, OBC etc. • These groups enjoy a given percentage of jobs, not withstanding the constitutional provisions which guarantees equal opportunities for all. • A well conceived personnel planning programme would protect the interest of such groups.

5. International strategies • International expansion strategies depend upon HRP with the growing trends towards global operations, the need for HRP will grow & the need to integrate HRP move closely into the organizations strategic plans. • HRP will grow increasingly important as the process of meeting staffing needs

6. Foundation for personnel functions • MPP provides essential info for designing & implementing personnel functions, such as recruitment, selection, T&D, personnel movement – transfers, promotion etc. 7. Increasing investments in human resources • HRP is the investment an organization makes in its human resources. • An employee who gradually develops his skills & abilities becomes a more valuable resource.

8. Resistance to change & move • There is a growing resistance among employees to change & move. • There is also a growing emphasis on self evaluation & on evaluation of loyalty & dedication to the organization. • Certain changes makes it more difficult for organizations to assume that it can move its employees around anywhere & anytime it wants. 9. Other benefits • Upper management has a better view of HR dimensions of business decision. • Time invested to locate talent.

Factors influencing HRP
• Type & strategy of organization • Organizational growth cycles & planning • Time horizons • Type & quality of forecasting info • Nature of jobs being filled • Off loading the work

a. Type & strategy of organization The type of organization is an important consideration because it determines the production processes involved, no. & type of staff needed & the supervisory & managerial personnel required. The strategic plans of the organization define the organization’s HR needs. Eg: Strategies of Internal Growth – Hiring Employees, Acquisitions/Mergers, Plans to layoffs, since some mergers create duplication/overlapping positions which could be handled more efficiently with fewer employees.

Primarily, organization decides either to be proactive/reactive in HRP i.e either to carefully anticipate the needs & systematically plan them to fill them far in advance or it can simply react to needs as they arise. Secondly, the organization must determine the breadth of the plan, organization could choose a narrow focus by planning such as recruitment/selection or it could make a broad focus by planning in all areas including T&D, remuneration etc.

Thirdly, organization could go for a formality of plan. It can decide to have a formal/ an informal plan. Formal – only managers, informal – written document, evidence etc. Finally, the organization must make a decision on flexibility – the ability of HR plan to anticipate & deal with contingencies.

b. Organizational Growth Cycles & Planning The stage of an organization’s growth can have considerable influence on HRP. Small organizations in the ernbryonic stage may not have personnel planning. Need for planning is felt when the organization enters the growth stage. HR forecasting becomes essential. Internal development of people also begins to receive attention in order to keep up with the growth.

A mature organization experiences less flexibility and variability. Growth slows down. The workforce becomes old as few younger people are hired. Planning becomes more formalized and less flexible and innovative. Issues like retirement and possible retrenchment dominate planning. Finally, in the declining stage, HRP takes a different focus. Planning is done for layoff, retrenchment and retirement. Since decisions are often made after serious financial and sales shocks are experienced by the organization, planning is often reactive in nature.

c. Time Horizons Yet another major factor affecting personnel planning is the time horizon. On one hand, there are short-term plans spanning six months to one year. On the other hand, there are long-term plans, which spread over three to twenty years. The exact time -span, however, depends on the degree of uncertainty prevailing in an organization’s environment.

Plans for companies operating in an unstable environment, computers for example, must be for a short period. Plans for others where environment is fairly stable, for example a university plan, may be long-term. In general, the greater the uncertainty, the shorter the plan's time horizon and vice versa.
Table in the next page…

Degree of uncertainty and length of planning period
Short Planning Period – Uncertainty/Instability Many new competitors Rapid change in social & economic conditions Unstable product/service demand patterns Small organizational size, poor management practices (Crisis Management) Long Planning Period – Certainty/Stability Strong competitive position Evolutionary, rather than rapid social, political & technological change Stable demand patterns Strong management practices

d. Type & Quality of information The information used to forecast personnel needs originates from a multitude of sources. A major issue in personnel planning is the type of information, which should be used in making forecasts.
Table in the next page…

Levels of HRP information
Strategic Information Product Mix Customer Mix Competitive emphasis Geographic limits of market General Organizational Information Organizational structure Information flows Operating and capital budgets Functional area objectives Production schedules Distribution channels Sales territories Production processes Level of technology Planning horizons Specific Information Necessary for HRP Job analysis Skills inventories Management inventories Available training and development programmes Recruitment sources Labour market analysis Compensation programmes Constitutional provisions and labour laws Retirement plans Turnover data

Closely related to the type of information is the quality of data used. The quality and accuracy of information listed in Table depend upon the clarity with which the organizational decision makers have defined their strategy, organizational structure, budgets, production schedules and so forth.

In addition, the HR department must maintain welldeveloped job-analysis information and HR information systems (HRIS) that provide accurate and timely data. Generally speaking, organizations operating in stable environments are in a better position to obtain comprehensive, timely and accurate information because of longer planning horizons, clearer definition of strategy and objectives, and fewer disruptions.

e. Nature of jobs being filled Personnel planners must consider the nature of jobs being filled in the organization. Job vacancies arise because of separations, promotions and expansion strategies. It is easy to employ shop-floor workers, but a lot of sourcing is necessary for hiring managerial personnel. It is, therefore, necessary for the personnel department to anticipate vacancies, as far in advance as possible, to provide sufficient lead time to ensure that suitable candidates are recruited.

f. Off-loading the work Several organizations off load part of their work to outside parties either in the form of sub-contracting or ancillarisation. Off loading is a regular feature both in the public sector as well as in the private sector. Most organizations have surplus labour and they do not want to worsen the problem by hiring more people. Hence, the need for off loading.

Some organizations are known to carry the concept of off-loading to ridiculous lengths. As companies outsources major part of its work, and in the process, the regular employees sit idle. Kickbacks from owners of ancillary units are the cause for such ancillarisation. HRP is rarely required in such circumstances.

HRP Process
Environment Organizational Objectives & Policies
HR Needs Forecast HR Supply Forecast

HR Planning HRP Implementation Control & Evaluation of Programme

Surplus Restricted Hiring Reduced Hours VRS, Lay off etc

Shortage Recruitment and Selection

Job Analysis & Job Design Job Analysis = Process of collecting information w.r.t a Job. Defn: JA is the process of studying & collecting info relating to the operations & responsibilities of a specific job. It’s a systematic exploration of the activities within a job. It’s a basic technical procedure used to define the duties, responsibilities & accountabilities of a job.

A job is a collection of tasks that can be performed by a single employee to contribute to the production of some product or service provided by the organization. Each job possess certain requirements associated with the job & JA is a process used to identify these requirements. The process of JA results in two sets of data i.e. a. Job Description b. Job Specification

JA – Process of obtaining all potential job facts

Job Description * Job Title * Vacation * Job Summary * Duties * Machine tools & equipments * Materials consumed * Working Conditions * * * * * *

Job Specification Education Experience Training Judgement Physical effort & skills Communication skills

JA involves following steps: 1. Collecting & recording Job information 2. Checking job info for accuracy 3. Preparing job description based on info 4. Using the info to determine the skills, abilities & knowledge required for the job 5. Updating info

Process of JA
Strategic Choices Gather Information Process Information Job Description Job Specification Uses of JD & JS * Personnel Planning * Performance Appraisal * Hiring *T&D * Job Evaluation & Compensation * Health & Safety * Employee Discipline * Career Plan

1. Strategic Choices: w.r.t JA, an organization is required to make atleast 5 choices. a. Extent of employee involvement in JA [JA = attributing info w.r.t duties + skills + responsibilities to perform a job. Info been collected frequently & employees are asked to supply vital info & now extent of involvement becomes prime question?] b. Level of details [Level of details required in JA depends upon the purpose for which job details are been collected]

c. Frequency of Analysis [JA is mostly conducted during newly established organization, new designation, changes in the profile of a job w.r.t technological advancements etc.] d. Past Oriented Vs Future Oriented [Organization undergoing technological changes tends to follow future oriented approach for JA. i.e, specifications w.r.t procedure carried for performing a job resulting in better training facilities for personnel] e. Source of data [direct source of information w.r.t a job is the job holder]

2. Information gathering • What type of data? (w.r.t work activities, job contexts, personnel requirements etc.) • What methods to be employed for data collection? (observation, interview, check list, diary method) • Who should collect the data? (trained job analyst, supervisors, job incumbents etc) 3. Information processing Once job information been collected needs to be processed so that its useful for personnel functions. Secondly, its useful to prepare job description & job specification.

Purpose of JA
* HRP * Recruitment & Selection *T&D * Job Evaluation * Remuneration * Performance Appraisal * Personal Information * Safety & Health

Job Description Job Analysis Job Specification

Methods of Collecting Job Data
Interviews Observation Questionnaire

Job Data
Check Lists Technical Conference Diary

Recruitment & Selection Needs
Determined recruitment & selection needs



Recruiting makes it possible to acquire the number & type of people necessary to ensure the continued operation of the organization. Recruiting is discovering the potential applicants for actual or anticipated organizational vacancies i.e linking activity which brings together those with jobs & job seekers. Here the purpose is to locate sources of man power to meet job requirements & job specifications and hence considered to be an important function of personnel administration.

Definition It is a process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Purposes & Significance • Determining the present & future requirements of the organization in conjunction with its personnel planning and JA activities. • Increasing large pool of applicants at minimum costs. • It increases the success rate of selection process in terms of screening. • Evaluate the effectiveness of various recruiting techniques & sources for all types of job applicants.

Factors governing Recruitment
External Forces * Supply & demand * Unemployment rate * Labour market * Political - Social * Sons of soil * Image Internal Forces * Recruitment policy * HRP * Size of the firm * Cost * Growth and expansion


Recruitment Process
Personnel Planning Job Vacancies Job Analysis Recruitment Planning * Numbers * Types Employee

Searching Activation “Selling” * Message * Media






* Where * How * When

Applicant Population

Evaluation and Control

Definition: Selection is the process of picking individuals (out of pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. It is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job.

Recruitment and Selection are the two crucial steps in HR process and are often used interchangeably. Recruitment refers to the process of identifying and encouraging prospective employees to apply for jobs, selection is concerned with picking the right candidates from a pool of applicants. Recruitment is said to be positive as it seeks to attract as many candidates as possible. Selection on the other hand, is negative in its approach in as much as it seeks to eliminate as many unqualified applicants as possible in order to identify the right candidates.

Role of Selection The role of selection in an organization’s effectiveness is crucial because • Work performance depends on individuals. The best way to improve performance is to hire people who have the competence and the willingness to work. Cost incurred in recruiting and hiring personnel speaks volumes about the role of selection.

Selection Process Selection is a long process, commencing from the preliminary interview of the applicants & ending with the contract of employment.

ORIENTATION & PLACEMENT Definition Orientation also called induction, is damaged to provide a new employee with the information he or she needs to function comfortably and effectively in the organization. A formal definition of orientation is “planned introduction of employees to their jobs, their coworkers & the organization”.

Purpose of Orientation Organizations are known to spend a few weeks or even months on orientation programmes. The idea is to make the new employees feel ‘at home’ in the new environment. Effective orientation programmes reduce the anxiety of the new employees by providing them information on the job environment and on supervisors, by introducing them to co-workers, and by encouraging them to ask questions.

Orientation seeks to expose new employees to all areas of the organization. This prevents inducts from getting overspecialized. Induction makes new hires become productive to the company quickly. Finally, a good orientation programme will create a favourable impression of the organization & its work.

PLACEMENT Placement is understood as the allocation of people to jobs. It’s a assignment or reassignment of an employee to a new or a different job. Placement includes initial assignment of new employees and promotion, transfer or demotion of present employees.

Training and development constitute an ongoing process in any organization. In simple terms, training & development refer to the imparting of specific skills, abilities and knowledge to an employee.

The need for training and development is determined by the employee’s performance deficiency computed as follows: Training & Development need = Standard Performance – Actual Performance

Training refers to the process of imparting specific skills. Education, on the other hand, is confined to theoretical learning in classrooms.

Training Application Job Experience Specific Tasks Narrow Perspective

Education Theoretical Orientation Classroom Learning General Concepts Broad Perspective

IMPORTANCE OF TRAINING AND DEVELOPMENT Training and development programmes help to remove performance deficiencies in employees. It is required when a • The deficiency is caused by the lack of ability rather than a lack of motivation to perform. • The individuals involved have the aptitude & motivation need to learn to do the job better. • Supervisors & peers are supportive of the desired behaviors.

Training Process
Organisational Objectives & Strategies
Assessment of Training Needs

Establishing of Training Goals

Devising Training Programme

Implementation of Training Programme Evaluation of Results

Methods of Training
On the job training Orientation Training Job instruction training Internship Job rotation Coaching Off the job training Vestibule Lecture Films Conference or Discussion Case study Role Playing Programmed Instruction Laboratory training

ON THE JOB TRAINING Orientation Training – It is given to the new hires for adapting himself to the new environment. Job Instructing Training – Step by step training process w.r.t way of performing jobs, job knowledge & skills. Internship – To be associated with an organization for a short period to have a technical knowhow of the industry.

Job Rotation – Movement of trainee from one job to another & receives job knowledge & experience in different departments & assignments. Coaching – Placed under a particular supervisor who coaches the trainee. He provides suggestions for improvement in work for the trainee.

OFF THE JOB TRAINING Vestibule – Actual work conditions are simulated in a classroom. Commonly used for training clerical & semi-skilled jobs. Lecture – A traditional & a direct method of instruction where the instructor organizes materials & gives it to a group of trainees in the form of a talk. Films – Documentaries, clippings etc. Conference or Discussion – A group of people who pose ideas, examine & share facts & draw conclusions which contributes to job performance.

Case Study – This analysis helps to examine situations & encourage decision making capabilities of the analyst. Role Playing – Human interaction that involves realistic behavior in imaginary situations. Programmed Instruction – Subject matter to be learned is presented in a series of planned sequential units. The trainee answers questions / fill in the blanks by crucial examination. Laboratory Training – Helps in self examination to test reliability & validate the statement / theory.

PERFORMANCE APPRAISAL Performance Appraisal is the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed.

It is the systematic evaluation of the individual w.r.t his / her performance on the job & his / her potential for development.

PA is a formal structured system of measuring & evaluating an employees job related behaviors & outcomes to discover how & why the employee is presently performing on the job & how the employee can perform more effectively in the future so that the employee, organization & society all benefits.

Objectives of Performance Appraisal • To effect promotions based on competence & performance. • To confirm the services of probationary employees upon their work getting completed satisfactorily. • To assess T&D needs of employees. • To decide upon a pay rise where regular pay scales are not fixed. • To improve communication as it improves communication amongst the superiors & the subordinates & helps them to understand personal goals & concerns.

Appraisal Process Objectives of PA
Establish Job Expectations Design & Appraisal Program Appraise Performance Performance Interview
Use appraisal data for appropriate purposes

Methods of Performance Appraisal Methods
Past Oriented Confidential Report Graphic Scale Method Straight Ranking Method Paired Comparison Method Grading System Forced Distribution Method Checklist Method Critical Incident Method Free Essay Method Group Appraisal Field Review Method Nominations Future Oriented Management by objectives 360-Degree appraisal Behaviorally Anchored Methods HR Accounting Assessment centre

MBO Refers to a comprehensive organization wise goal setting & appraisal programme that includes: • Set organizational goals • Set departmental goals • Determine expected results • Performance review • Provide feedback

360 – Degree Appraisal It involves systematic collection of performance data on an individual or a group, derived from a no. of stake holders being the immediate supervisors, team members, customers, peers & self. The appraiser should be capable of determining what is more important & relatively less important factors. He should prepare reports & make judgments without getting biased.

BARS A scale with specific behavioral examples of good or poor performance. The method employs individuals who are familiar with a particular job to identify its major components. They then rank & validate specific behaviors for each of the components like: • Collecting critical incidents • Identifying performance appraisal • Classifying incidents • Assigning scale values • Producing final results.

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