Human Resource Management

Functions
Human resources management embraces two functions:
(1) Basic functions in general management of the enterprise
which are planning, organizing, directing, coordinating, and
controlling;
(2) Operative functions which cover the daily activities of the
business such as procurement, placement and utilization of
employees, motivating, and compensating employees.
 Human Resources Management
HR Planning
strategic HR planning;
job design

Retaining
employees Attracting
compensation; employees
maintenance; labor recruiting; selecting
relations; separation

Developing
employees
training & development;
performance appraisal
2
Components of HRM

Recruitment
Selection
Training & development
Performance Appraisal
Compensation
Labor Relations
 Basic Functions
Planning a proposed mode of action based upon a full
understanding of the factors involved, and directed at
specific objectives which take into consideration the
priorities desired by management.
planning policies, programs, and activities directed to
achieve the goals of the enterprise and create a favorable
climate for human resources in the organization.
involves looking ahead in order to anticipate possible
stumbling blocks and eliminating them before they occur.
HR Planning
Planning for the future personnel needs of an
organization,
taking into account both internal activities and
factors in the external environment

5
HR Planning
Job Design
usually done prior to recruitment
the process of describing the work that needs to
be done by an employee and
specifying the requirements needed in fulfilling
the job

6
Organizing the arrangement and relationships of jobs
and position which are necessary to carry out the
personnel programs as determined by top management.
It establishes lines of responsibility, authority and
communication
ensure smooth operation of the various activities required
in achieving the objectives
the functions needed to carry out personnel policies and
programs are determined in advance so as to carry out
effectively such functions as planned.
Directing: a means of putting plans into action
through effective supervision, work rules, and
procedures.
the guidance of all efforts toward a stated objective.
If workers know their duties and responsibilities, they
can work with greater efficiency and accomplish more.
In getting things done, the effective manager uses the
principles of leadership, motivation, and human relations
that make the worker perform his work with enthusiasm.
Coordinating : a method of getting people in an
organization to work together harmoniously to achieve a
common goal with minimum expenditure of effort and
materials.
provides the orderly synchronization of efforts. Through
correct timing and sequence of execution, resulting in
harmonious and unified action in pursuit of common
objectives.
an orderly arrangement and execution of the activities,
involving personnel policies and programs in the various
departments and levels of the organization to achieve
their objectives.
keeping all efforts within the channels prescribed by
management as shown in the personnel plan for the
entire organization
Operative Functions
The operative functions of personnel management
cover the details of the responsibilities and tasks
necessary to carry out policies and programs related
to personnel.
These activities push forward the day-to-day work of
staffing the enterprise and accomplishing its
objectives.
Operative Functions
Employee Procurement includes recruitment,
selection and hiring of an employee.
Placement and Utilization includes placement
and utilization of an employees abilities,
competencies, and skills.
Training and Development refers to the
employees acquisition of new knowledge, skills,
and proper work attitude from the organization.
STAFFING
Effective performance begins with getting the right people,
and then providing them with the right training and the
right environment. To achieve this, the staffing function of
the organization must be well implemented.
Staffing refers to the HR planning, acquisition, and
development aimed at providing the talent necessary for
organizational success.

The staffing process consists of the following

Job analysis
Recruitment
Selection
Socialization
Socialization -The final step in the staffing process
-Involves orienting new employees to the
organization and its work units.
In socialization, the new employees are provided
with information the following:
1. Key organization factors which includes an
ooverview of the organization
opolicies and procedures, compensation
obenefits, safety and accident prevention
oemployee and union relations
ophysical facilities
 Four Distinct Areas OF HRM:
(1) recruitment & selection

(2) training and development

(3) compensation/benefits

(4) employee relations.

Attracting Employees
Recruitment
development of a pool of job candidates in
accordance with a human resource plan
its purpose is to provide management with
enough candidates from which they can select
qualified employees
It is the process of finding and attracting capable
applicants for employment.

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Recruitment
It is the 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 pool of
applicants from which new employees are selected.
 Recruitment and selection is usually based on the
subjective factors, these factors such as looks, dresses, body
language, communication styles may sometimes affect the
selection process. In order to avoid some careless and haphazard
employee procurement, the principles of employee selection and
objective practices must be employed. These methods and
principles may guide the hiring officer to hire the most qualified
and competent applicant; place him/her to the job which matches
with his qualifications; and provide harmony and enjoyment to
the job and the work environment. After a successful employee
procurement, necessary training were required in order for
employees to be familiar with the organization and maximize their
capability, productivity and efficiency for their tasks and jobs.
Factors Governing recruitment

External factors Internal factors

Supply and demand
Unemployment rate Recruitment policy
HRP
Labour Market Recruitment
Political Size of the firm
Social Cost
Sons of soil Growth
Image Expansion
Factors that Affects Recruitmentthe recruitment process may
sometimes be interrupted or aided by both external and internal factors.
External Factors factors that exists outside the company, it involves:
Supply and Demandthe current situation of supply and demands on
specific skill sets or competencies affects the recruitment process.
Unemployment Rateif the unemployment rate is high, it is most likely
to easily attract a number of people which makes the recruitment
process simple.
Labor Marketthe availability of manpower in a certain location or local
area.
Political-legal Factorspolicies and laws developed by the state may also
affect the recruitment processes.
Sons of Soilpreference to local people may affect the recruitment
process.
Imagethe perception of the job seekers about the company may also
affect the recruitment process.
Internal Factors different factors generated within the company, which
involves:
Recruitment Policysets of different policies developed in order to monitor
and avoid unethical or mischievous recruitment practice.
Human Resource Planningmanpower and organization considerations.
Size of the firmthe bigger the size, the larger the number of applicants
needed to acquire.
Costsrecruitment processes must stay within budget and minimize costs
as much as possible.
Growth and Expansionusually simplifies and increases the recruitment
processes for the company will need to have more employees.
 Building Pool of Candidate

INTERNAL EXTERNAL
 SOURCES OF RECRUITMENT

INTERNAL EXTERNAL

Current Employee Advertising

References from present Employment agencies
employee Temporary help
Databank of former Executive recruiters
applicants Referrals and walk-ins
Retired Employee College recruiting
Former employee Companys web site
Free and fee-paying
Website services
Internal Recruitment
Advantages
1. It is less costly
2. Candidates are already
oriented toward organisation
3. Organisation have better
knowledge about the internal
candidates
4. Enhancement of employee
morale and motivation
5. Good performance is
rewarded
Disadvantages
1. It perpetuates the old
concept of doing things
2. It abets raiding (make a
person provide something)
3. Candidates current work
may be affected
4. Politics play greater role
5. Morale problem for those
not promoted
External Recruitment
Advantages Disadvantages
1. Benefits of new skill, new 1. Better morale and
talent and experiences to motivation associated
organisation with internal recruiting is
denied to the organisation
2. Compliance with 2. It is costly
reservation policy becomes
easy
3. Scope of resentment, 3. Chances of creeping in
jealousies and heartburn false positive or false
are avoided negative error
 Writing a Recruitment Advertisement
Company Emblem An emblem of the recruiting company is visible on the
advertisement.
Realistic Job Information Information about the job were accurate,
feasible, and genuine.
Detailed Job Information information about the job must be sufficient.
Possible Selection Process the proper selection process were displayed.

Different Recruitment Methods

Internal Method/Sourcesconcern on recruiting applicants within the
organization or is currently working for the company.
Advantages
Develop good employee relations
Builds and increases employee morale
Less recruitment costs
Familiarity with the company makes it easy
Encourages ambitious employees
Disadvantages
May increase rivalry among employee
Decreases morale of unselected employees
May promote inbreeding
Limits the number of potential applicants
Creates another vacancy
Longer process
No new ideas can be generated from outside

Internal Recruitment Methods

Job Postings
Career ladders utilization
In house magazine/news letters
Supervisor Recommendations
Computerized career progression system
Career development systems
External Method/Sources concern on recruiting candidates
outside the organization.
Advantages
Opens to a larger pool of applicants
Brings fresh talent inside the company
Encourages more competition
Lesser prejudice and favoritism among applicants

Disadvantages
Expensive as compared to internal methods
Urgency in the selection process may affect the quality
May damage employee morale
Takes more time in training and orientation
Cannot foresee if one fits the companys culture
External Recruitment Methods
Media/Internet Advertisement
Respond by calling
Apply-in-person
Blind Box
Referrals
Campus recruitment
Professional or trade associations
Open House/Walk-in applicants
Competitors
Private employment and executive search firms
Head hunters
Direct Mail
Job fairs
Point of Purchase Methods

Situational Wanted Advertisement also called as jobs-wanted or

position-wanted ads that are placed by the applicant rather than
the different organizations.
 Selection
Selection is the process of differentiating between
applicants in order to identify those with a greater
likelihood of success in a job.
It is the process in which the human resources or
hiring department follows a structured series of steps
that would help them decide on which among the
recruits should be hired.
An Overview of the Selection Process
Step 1:Establishing the selection procedurethe establishment of
the selection procedure in order to develop a clear understanding
on the different job components to be assessed.
Step 2:Selection criteria, predictors and instruments identification
consulting the job analysis results in order to develop a clear and
precise job description and job specification.
Step 3:Collate and evaluate applicant informationwhere the
different evaluation takes place.
Preliminary Screening it includes the initial interviews and
preliminary screening techniques for it only assesses obvious and
observable factors such as communication skills, physical
appearance and grooming, educational background, training and
experience. It provides a general impression of a certain individual
or applicant.
Application Form it is done by assessing an
applicants employment application forms which were
filled by those applicants who passed the preliminary
screening it includes details such as: Schools Attended,
Skills and Talents, Trainings and Seminars Attended,
Employment Data, and Professional Memberships.
Testing and Assessmentwhere psychological and
standardized tests were administered to serve as a
measuring tool for a sample behavior and cognition.
Psychological Testsare structured written, visual or
verbal evaluations administered in a standardized
condition to asses cognitive, emotional and other
functions of an individual.
Process of selection
Preliminary Interview

R Selection tests
E
J Employment Interview
C
Reference & background
T
E Selection Decision
D
Medical Examination

Job Offer

Employment Contract

Evaluation
Interviews
Formal, in depth conversation conducted to evaluate the
applicants acceptability.

Adapted to unskilled, skilled, managerial and professional

employees.

Two-way exchange of information, the interviewers learn

about the applicant, and the applicant learns about the
organization
Shortcomings of interviews
Absence of reliability

Lack of validity

Biases
Preparing for the Interview
Abundant research exists that reliability and validity of the selection
interview are higher when an interview is structured, planned and
standardized in form. This approach fosters a comprehensive
investigation of the applicant's background, precludes personal and
non-job-related questions, and increases impartiality in qualification
assessment. Therefore, an interview plan is strongly recommended.

Prior to developing the interview plan, it is critical to be clear about

the job requirements and stick to them throughout the hiring
process. This ensures that you dont fall in love with each candidate
and redefine the job to fit.
Types of Interview
Interview may be

One to one Interview

Only two participants

1. Interviewer
2. Candidate
Sequential Interview

1 2 3

Involves series of interviews

Candidates moves from room to room
Panel Interview

Two or more interviewers

Formal
Objectives of Interview
Helps obtain additional information from
applicant

Facilitates giving general information to

applicant

Help build image of the organization

Medium in conducting interview
Telephone Interviewinterviews conducted through cellular or long
distance phones.
Video Conference Interview interviews conducted at remote sites
using technology imitating a face-to-face interview having a lower voice,
image, and interaction capacity.
Written Interview Interviews conducted by answering a series of
interview questions and sending it through a regular mail or email.

STRUCTURES of interviews:
Structured or Directive Interviewan interview following an identified
procedure and sequencing of questions. Questions are based on the
results of the job analysis, with a standardized scoring key are provided
to evaluate each answer and are all job related questions.
Stress Interview - An interview in which the applicant is made
uncomfortable by a series of often rude questions. This technique helps
identify hypersensitive applicants and those with low or high stress
tolerance.
An interviewer uses different TYPES of interview questions in order to
obtain factual and accurate information about a certain candidate or
applicant.

Clarifier includes clarifying questions about the information provided in

the resume and application forms.
Disqualifiers includes questions that may disqualify an applicant from a
wrong answer.
Behavioral, Past Focus, or Patterned Behavior Description Interview
considered being the best predictor of future performance. It focuses on
what the applicant has done rather than what they can do.
Situational or Future Focus Interview can tap an applicants problem
solving ability, experience, and common sense. A problematic situation will
be given and the interviewee would suggest things that can solve the
problem presented.
Skills, Skill-Level Determiner, or Knowledge Focus Interview questions
that focus on the knowledge of the interviewee about his/her chosen
discipline or career.
Organizational Fit Focus designed to assess how an applicant could fit in
the organization.
Unstructured or Nondirective Interviewan unstructured
conversational pattern in which an interviewer may pursue points of
interests which are unrelated to his/her job application. Unstructured
interviews has some problems which includes:
Poor Intuitive Abilityhiring decisions were based on gut feelings and
subjective evaluations.
Primacy Effectalso known as first impression effect or halo effect
which early information influences the overall perception of the
interviewer all throughout the interview procedure.
Contrast Effectthe performance of one applicant affects the
perception of an interviewer towards the following applicants.
Interviewer-Applicant Similaritiesapplicants with similar
characteristics or cultural background with the interviewer may
receive high scores than other applicants.
Interviewee Appearancewhen attractiveness bias influences an
interviewers decision in the hiring process.
Non-verbal Communicationappropriate and inappropriate
nonverbal cues may influence interview results.
Creating a Scoring Key for Interview Answers after creating a set of interview
questions a way to determine the quality of the answers obtained is to create a
scoring key through the following:

Right-Wrong Approach scored based on correct and incorrect answers.

Typical-Answer Approach scored based on benchmark answers and then
rated with a five point scale.
Benchmark Answers determined by Subject Matter Experts for a number of
possible answers favorableness.
Key-Issues Approach scored based on the key issues or word the applicant
was able to tackle or provided.

Reference Checkingreferences are important in order to obtain necessary

information from either previous employers or acquaintances with noble
credentials. This checks an opinion either orally or through written expression or
checklist regarding the applicants ability, pervious performance, habits,
character and potential for future success.
Reasons for Reference Checking and Recommendations
Confirming details on a resume avoids resume fraud.
Checking for discipline problems avoids negligent hiring.
Discovering new information about the applicant understand more
about the personality of an applicant.
Predicting future performanceimproves predictive validity of
performance measures.
Problems that affects the validity
Leniency most are positive.
Applicants choose their references.
Confidentiality concerns
Legal ramifications
Leans towards negligent reference
Knowledge of the applicant limited information about the
applicant.
Low reliability lack of agreement between two people.
Extraneous factors the structure of the letter of recommendation
affects the perception.
Physical Examinationsthis examination determines the
physical fitness of an applicant for the job. It also screen
outs applicants with communicable diseases, physical
problems and those that are influenced by drugs.
Drug Test a test which indicates whether an applicant
recently used an illegal drug.
Psychological Exams an interview with a psychologist
and administration of one or more psychological tests.
Medical Examsdetermines if the applicant is fit for the
duties and responsibilities of a certain job.
Concept of Training and Development
Training

The act of increasing the skills of an employee for doing a

particular job, and thus its a process of learning a sequence of
programmed behaviour to do that particular job; short term
for a definite purpose

Development

It refers broadly to the nature and direction of change induced

in employees, through the process of training and educative
process; long term educational or general purpose
Developing Employees
Training
a process designed to maintain or improve
current employee performance
Development
a process designed to develop skills and
attitudes necessary for future work

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 Training and Development
responsible for helping employees to maximize their
potential.
enhance employees personal qualities that lead to
greater organizational productivity.
often better known as the organizations internal
change agents.
 TRAINING
Training is the process of changing employee behavior,
attitudes, or opinions through some type of guided
experience.
Ways to conduct training programs:
o On-the-job training This training methods is
conducted while employees perform job-related tasks.
It is the most direct approach to training.
o The common forms of on-the-job training:
o Internships
o Apprenticeships
o Job rotation
Training: systems, procedures, and practices usually get
outdated due to technological, managerial, and
behavioral developments.
process of imparting or enhancing knowledge, skills
and attitudes of employees to increase efficiency and
effectiveness on the present job as well as expected
future jobs.
the objective is to achieve a change in behavior
TRAINING NEEDS ANALYSIS
Determining the Training Needsin order to develop an
effective training program the organization must then
first assess their needs, choose the best method as
possible and evaluate it after the program.
Needs Analysis determines the type of training needed for
a certain organization, as well as the extent to which the
training takes place.
Organizational Analysisanalysis of different organizational
factors that might be affecting the organizations ability to
reach its goals.
 Task Analysisanalysis of the tasks performed of each
employee, and other conditional considerations that
might be affecting their performance.

Person Analysisanalysis of each employees

performance where one could identify who should be
trained.
Establishing Goals and ObjectivesAfter needs analysis the
organization must set training objectives in order to reach
training goals. It should concretely state:
What learners are expected to do
What conditions they are expected to do the tasks
What level are they expected to perform tasks
 Choosing the Best Training Methodsvarious training
methods were utilized by different organizations; they
usually choose what would best suit their organizational
needs and employees involve in the training.
LectureUsually done in a classroom style training, where
handouts were provided and is presented through usual visual
aids.
Case Studya technique where participants are divided into
different groups and are tasked to solve a hypothetical work place
problem.
 Simulation Exercisesa training style where a participant is allowed
to simulate different tasks without any consequences for
inappropriate behavior or mistakes.
Role Playa technique were a participant is asked to act out work
place roles and deal with certain situations and problems.
Behavior Modelingjust like role playing, however they simulate
ideal and rewarding behaviors.
Types of Training: different training methods
employed in the different levels of employees.
Non-supervisory Employees
On-the-job Trainingoldest and most widely used training method in
the industry that takes place directly on the job for which the worker
is being trained.
Vestibule Trainingsame as simulation exercises
where trainees were asked to deal with the same
kind of equipment and operating processes from
the actual work place.
 Apprenticeshipa trainee is expected to serve as an apprentice or
intern for a certain company reporting to a manager or supervisor for
a fixed period of time.
Programmed Instructiona type of training where trainees are asked
to follow programmed instructions designed for a certain job or task.
Linear Programming All trainees follow identical instructions in
the same sequence.
Branching ProgrammingTrainees are asked to conform more to
individual differences. Some may skip some steps if they are
having a bad time doing it and deal with it later.
 Computer-Assisted Instructionany instructions and training
programs that is assisted by computers. Usually being used in
military, government, and high end business firms to screen the best
trainee they have so far.
Behavior Modification An annual performance audit is performed
and conducted to determine the existence of certain problems that
are ought to modified or change.
Managerial Positions
Job Rotationexposing trainees to different departmental jobs
acquainting them to all facets of the business.
Case Study Methodfrequently used in executive training programs.
A complex problem is presented to the executives and they are
expected to present possible solutions and relevant information.
 Business Gameswhere executive trainees, in a gaming
process are presented with a complex, real life situation
that they would have to deal with and provide solutions.
In-basket Training different organizational and operating
problems were collected and are pooled on a basket.
Executive trainees then pick-up unknown problems and
take an action on each item for a given period of time.
Sensitivity Trainingdesigned to develop and improve
interpersonal, social, and communications skills.
Travel or Observation Tours executives were sent to a
certain local or international affiliate to observe and learn from
their processes and developments.
Other Forms of Training
Learners in the Industrycollege student who
spends a required amount of time in an industry as
a partial requirement for their degree.
Formal Educationcontinuous educational program
such as Masters and Doctorate degrees.
Seminars and Work-shopsby attending different
seminars and work-shops conducted by various
providers.
Internet Trainingtraining done through a legitimate
internet training provider.
 Team Buildinga training that aims to enhance
social relationships and address interpersonal
problems that affects the organizational
performance.
Distance Learning a way of learning remotely
without being in regular face-to-face contact
with a trainer in the classroom.
Asynchronous trainees can complete the
training at their own pace.
Synchronous trainees are required to
complete the same time at the same pace.
 Methods of Evaluating Training Results it is very
important to evaluate training outcomes for training may
cost a considerable amount of money. These evaluation
techniques may estimate the appropriateness and effects
of training conducted.
Case Studyconducting an evaluation of the training after the
whole training program. It assesses each employees involved and
evaluates whether they performance improves or not.
 Pre-test/Post-test ComparisonA pretest is
conducted before the training, which would act
as the norm where the results of the posttest
after the training will be then compared.
Pre-test/Post-test Control Group Designalmost
the same as the pretest/posttest comparison
design, however this time it its composed of
two groups: the experimental group and a
control group
Solomon Four Group Designrequires four
groups in which participants are randomly
assigned and would follow the given diagram.
Different organization recommends this kind of
evaluation.
Evaluation Criteria there are six levels which training
effectiveness can be measured.
Content Validity comparing training content with the knowledge,
skills, and abilities required to perform a job.
Employee Reactions involves asking employees if they enjoyed
the training and learned from the training.
Employee Learningdetermined before and after the training if
they actually learned from it.
Application of Trainingthe extent to which employees apply the
material taught in a training program.
Business Impact determining whether the goals of the training
were meeting organizational goals.
Return on Investmentthe amount of money the organization
makes after subtracting the cost of training.
Training Cycle

Training Gaps Vs. Strengths

Needs
Analysis

Session
Evaluation
Planning

Delivery
METHODOLOGIES - Blended
Classroom -20 to 30 percent
OJT/Apprenticeship
Job rotation
Cross border exchanges
Cross Functional Training
Mentoring
Executive Coaching
Travel/Observation Tours
Conferences, Lectures
MBA , tie-ups with schools
Intranet
Action Planning
Case Study
Performance Evaluation
process of providing feedback to subordinates
regarding their performance on the job.
After the recruitment, selection and training processes,
the human resource department is to assess and
evaluate how an employee is performing throughout a
certain period of time.

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 PERFORMANCE EVALUATION
a systematic way on evaluating an individuals performance about
their knowledge about the job, quality and quantity of output,
initiative, leadership skills, dependability and other factors to
consider about an individuals job. It does not only deals with the
previous performances but as well as future performance.

beneficial for both employer and employees

point out strengths and weaknesses where people can work on to

initiate personal improvement and development
 The 10 Step Process of Performance Evaluation

1. Determine the purpose of the appraisal.

2. Identify environmental and cultural limitations.

3. Determine who will evaluate the performance.

4. Select the best appraisal method to accomplish goals.

5. Train the raters.

6. Observe and document performance. Provide immediate feedback as needed.

7. Evaluate performance.

8. Communicate appraisal results to the employees

9. Make personal decisions

10. Monitor the legality and fairness of the appraisal process.

 PERFORMANCE APPRAISAL
Performance appraisal is a key aspect of performance
management. It is the process of evaluating the
performance of employees.
Functions of Performance Appraisal
To give employees feedback on performance
To identify the employees developmental needs
To make promotion and reward decisions
To make demotion and termination decisions
To develop information about the organizations
selection and placement decisions.
 PERFORMANCE APPRAISAL
Criteria for Performance Appraisal
Individual task outcomes
o Evaluating the employees task outcomes
Behaviors
o Teachers for instance are evaluated according to how well they manage
classroom activities, the quantity and quality of professional training
attended, research output, community service
Traits
o Good attitudes
o Showing confidence
o Being dependable
o Looking busy
o Possessing a wealth of experience
 PERFORMANCE APPRAISAL
The Process of Performance Appraisal
1. Establishment of performance standards
Performance standards are those by which is to be
evaluated
Standards should be based on job related requirements
derived form job analysis and reflected in the job
descriptions and job specifications
Ex: all customer orders will be filled in 4 hours with a 98
percent accuracy rate.
PERFORMANCE APPRAISAL
2. Mutually set measurable goals
Goals are set with active participation of the employees
3. Measure actual performance
Personal observation
Statistical reports
Oral reports
Written reports
4. Compare actual performance with standards
5. Discuss the appraisal with the employee
6. Initiate corrective action
Methods of Performance Appraisal
Three different approaches
Absolute Standards the subjects of appraisal are not
compared with other person.
Methods of Absolute Standards
o Essay appraisal
appraiser writes a narrative report
employees strengths and weaknesses are described and
recommendations for development
o Critical incident appraisal- is a method in which the manager writes down
positive and negative performance behavior of employees through out the
performance period.
Effective or ineffective performance for each employee being
appraised
 An example of a good critical incident is:

June 7- Pedro arrived thirty minutes early for work and there were five customers who were
already waiting to be served. Pedro promptly fixed his wares and started serving the customers. He was
polite and smiling.

An example of bad critical incident:

June 1- Pedro took a ten minute personal call on his cellphone. Three of the waiting customers
could not afford to wait and left without being served by Pedro.

Checklist
Uses a list of behavioral descriptions and checks off those behaviors that apply to the
employee.
Check list is a set of objective or descriptive statements. If the rater believes that the
employee possesses a trait listed, the rater checks the item; If not , the rater leaves it
blank
Adjective rating scale/ Graphic rating scale
The oldest and most widely used method for performance
appraisal.
The scales may specify five points, so a factor such as job
knowledge might be rated from 1 (poorly informed about
work duties) to 5 (has complete mastery of all phases of the
job).
List a number of traits and a range of performance for each
 Forced choice- is a method of performance appraisal
that ranks employees through forced distribution. The
rater is asked to rate employees in some fixed
distribution of categories such as Superior, Above
average, Average, Below average and Poor.
Behaviorally Anchored Rating Scale (BARS)
This method is used to describe a performance rating
that is focused on specific behaviors orsets as indicators
of effective or ineffective performance.
It is a combination of the rating scale and critical incident
techniquesof employee performance evaluation.
 Relative Standards appraisal methods compare
individual against other individuals
Methods of Relative Standards
Group order ranking- ranking the employee from the
most efficient to the least capable o each trait or quality
to be used in judging the employees performance or just
simply ranking the employee from best to worst.
Individual ranking
Paired comparison- consists of asking an evaluator to
consider only two individuals at one time and to decide
who is better. Then another pair of names is presented to
the evaluator for another evaluation. An employee
position in the final ranking is determined by the number
of times that employee is chosen over the other
employee.
Indicators or Matrix that Can Help Measure Employee
performance
According to Hakala (2008) , a manager or supervisor can
use the following indicators of performance to appraise
subordinates.
1. Quantity- The number of units produced or sold is a good
objective indicator of performance.
2. Quality- The percentage of work output that must be redone
or is rejected is one indicator of quality.
3. Timeliness- how fast work is performed.
4. Cost Effectiveness- The cost of work performed should be used
as a measure of performance only if the employees has some
degree of control over costs.
5. Absenteeism/ Tardiness- An employee is obviously not
performing when he or she is not at work.
6. Creativity- Supervisors and employees should keep track of
creative work examples and attempt to quantify them.
 Compensation and Benefits
Work in comparison and benefits are often described as
dealing with the most objective areas of a subjective
field.
compensation and benefits is concerned with paying
employees and administering their benefits package.
These tasks are by no means easy ones.
External factors such as market conditions, limited supply
of potential workers, and the like, may affect the overall
range of job worth. Further analysis ensures internal
equity in the compensation system. This means that as
job rates are set, they are determined on such
dimensions as skill, job responsibility, effort, and
accountability---not by personal characteristics that may
be suspect under employment law.
Compensation and Benefits
As benefit offerings to employees have become significantly
more costly, the benefits administrator (who may also have the
title of risk manager) has the responsibility of piecing together
a benefits package that meets employee needs and is cost-
effective to the organization. As such, much effort is expended
searching for lower-cost products, like health or workers
compensation insurance, while concurrently maintaining or
improving quality.
Additionally, various new products are often reviewed, such as
flexible benefits programs and utilization reviews, to help in
benefit cost containment. But benefits should not be viewed
solely from a cost-containment perspective.
Benefits are of a strategic nature in that they help attract and
retain high-quality employees.
Compensation and Benefits
Other information may be provided through a
variety of methods.
Other employees activities such as:
1. retirement
2. looking for various payout options
3. keeping abreast of recent tax law changes
4.Providing assistance to employees
This is a great deal of responsibility, but also highly
visible in the organization.
 REWARDS
Reward is a final requirement to ensure effective performance.
The requirement refers to the design and implementation of
reward system.
Types of Organizational Incentives
Intrinsic or Extrinsic
Intrinsic rewards are those that the worker receives from the job
itself.
oPrides in ones work
oFeeling of accomplishment
oBeing part of a team
Extrinsic rewards are those that enhance the workers get from the
employer.
o Money
o Promotion
o Benefits
Employee Relations

The final phase in our scheme of HRM operations is

the employee relations function. Employee
relations (ER) has several major responsibilities.
 What is Performance Management?
Performance management is an ongoing communication process, undertaken
in partnership between an employee and his/her immediate supervisor.
refers to the procedures and systems designed to improve employee outputs and
performance, often through the use of economic incentive systems.
Apart from economic incentives, the other means used to improve employee
performance are:
1. Goal setting
2. Streamlined organizational structure
3. Better technology
4. New arrangements of working schedules
5. High involvement of employees
6. High motivation of employees
Why Measure Performance

Managers cannot manage and define what is

expected and gives feedback and recognition
without defining the basis or performance
measures.
On the part of the employee, He /She cannot
improve on what he/she is supposed to do without
the necessary data before and after to see if
performance actually improving.
Creating high performance requires a definition of
clear goals so you will know it when you see it.
CONCERNS OF PERFORMANCE MANAGEMENT
Concerns with outputs, outcomes, process and inputs
Concerns with planning
Concerns wit measurement and review
Concerns with continuous development and
improvement
Concerns for stakeholders
Indicators or Matrix that Can Help
Measure Employee performance
7. Adherence to Policy- deviations from policy indicate
an employee whose performance goals are not well
aligned with those of the company.
8. Gossiping and other Personal Habits- They may not
seem performance related to the employee, but
some personal habits, like gossiping or rumor,
mongering, can disrupt job performance and
interfere with the performance of others.
9. Personal Appearance/ Grooming Most people
know how to dress for work, but in many
organizations, there is at least one employee who
needs to be told.
Management by Objectives
The term was first coined by Peter Drucker
Drucker emphasized that an effective management
must direct the vision and efforts of all managers
towards a common goal.
 Management By Objectives (MBO)
MBO is a process in which managers and their
subordinates set objectives for the employee to achieve
within a specific rating period.
MBO focuses attention on what must be accomplished
(goals) rather than how it is accomplished (methods) .
Reward is given based on the result or output.
Management by Objectives consists of four steps:
oGoal setting
oAction planning
oSelf-control
oPeriodic reviews
 ORGANIZATION DEVELOPMENT
Organization Development is a systematic application of
behavioral science knowledge to the planned development
and reinforcement of organizational strategies, structures,
and processes for improving an organizations effectiveness
Organization development is a planned process of change in
an organizations culture through the utilization of
behavioral science technologies, research, and theory
Managing Change in Organization
 Four major stems of OD
(1) T-group T-Group (Laboratory Training) participants
learn from their own actions and the groups evolving
dynamics
(2) Survey Feedback Technology Developing reliable
questionnaires, collecting data from personnel, analyzing it
for trends, and feeding the results back to everyone for
action planning
(3) Action research Diagnosing, taking action, re-
diagnosing and taking new action
(4) Sociotechnical & Socioclinical approaches Integrate
social requirements of employees with technical
requirements needed to do work in provided environment.
 Second-Generation OD
Organization Transformation
Organizational Culture
Learning Organization
Total Quality Management
Visioning and Future Search
Business Process Reengineering
Quality of Work Life
 OD interventions:
Diagnostic
Team-Building
Intergroup
Education and Training
Structural
Process Consultation
Grid Organization Development
Third-Party Peace Making
Coaching and Counseling
Life and Career Planning
Planning and Goal Setting
Strategic Management
 Steps Toward Organizational Change Kriegel and Brandt
(1996)
SACRED COW HUNT The first step in the organization
change, in which employees look for practices and policies
that waste time and are unproductive
Paper Cow unnecessary paperwork, usual forms and
reports that cost organization money to prepare, distribute
and read
Meeting Cow How much meeting time was spent doing
business as opposed to socializing?
Speed Cow Unnecessary deadlines. Requiring work to
be done by tomorrow is sometimes unnecessary
Theory of Organization Changes
Group Decision and Social Change

Unfreezing Organization must convince employees and

other stake holders that the current state of affairs is
UNACCEPTABLE and that CHANGE is NECESSARY
Moving the Organization take steps (training new work
processes) to move the organization to the desired state.
Refreezing the Organization develops ways to keep the
new change in place, such as formalizing NEW POLICY &
REWARDING employees for behaving in a manner
consistent with the new change
Five Stages of Major Organization Changes
DENIAL this is the initial stage wherein the employee deny any
changes will actually change place, try to convince that the old
way is working and create reasons why the proposed changes
will never work We tried before and it didnt work. Something
like that wont work in a company like ours)
DEFENSE When the employee begin to believe that change will
actually occur. They become defensive and try to justify their
positions and ways of doing things.
DISCARDING employee begin to realize not only that the
organization is going to change but that the employees are going
to have to change as well.
ADAPTATION At this stage, employees test the new system,
learn how it functions and begin to make adjustments in the way
they perform.
INTERNALIZATION In this final stage, employees have been
immersed in the new culture and comfortable with the new
system.
Type of Change

Evolutionary - Continual Process of upgrading or improving

Process- Real Jolt to the System that drastically changes
the way things are done
Other FACTORS to Change
 The Person Being Changed
Change Agents are people who enjoy change and often make
changes of the sake of it. If aint broke, break it.
Change Analyst are not afraid to change or make changes but
want to make changes only if the changes will improve the
organizations. If it aint broke, leave it alone; if it is broke, fix it.
Receptive Changers people who will probably will not instigate
change but willing to change If its broke, Ill help fix it.
Reluctant Changers certainly not instigate or welcome change,
but they will change if necessary. Are you sure its broken?
Change Resisters hate change, are scared of it and will do
anything they can to keep change from occurring. It may be
broken, but its still better than the unknown.
 Implementing Change
1. Creating an Atmosphere for Change
Employees should be surveyed to determine how satisfied they are
with the current system. Results will show how many employees are
happy or unhappy with the current status/process
2. Communicating Details
Employees are most responsive to change when they are kept well
informed and in the loop from the initial planning to final
implementation. This is to eliminate suspicion or negative feedback
3. Time Frame
Most successful organizational changes occur in a timely fashion. The
longer it takes, the greater the opportunity for things to go wrong.
4. Training Needs
After the organization has made a major change, it is often necessary
to train employees to get used to the NEW system, technology or
environment.
 Flexible Work Arrangements
Flextime
A Work schedule that allows employees to choose their
own work hours.
With flextime, employees are given greater control over
the hours they work. It is believed that this increase in
control and flexibility has many advantages for employees.
 Retrenchment
Retrenchment Concept
Retrenchment is an economic ground to reduce the number
of employees. It is the reduction of personnel for the
purpose of cutting down on costs of operations in terms of
salaries and wages resorted to by an employer because of
losses in operation of a business occasioned by lack of work
and considerable reduction in the volume of business
.Retrenchment is sometimes also referred to as downsizing.
It is aimed at saving a financially ailing business
establishment from eventually collapsing.
Retrenchment

Separation Pay
In case of retrenchment to prevent losses, the
separation pay shall be equivalent to one month
pay or at least one-half month pay for every year of
service, whichever is higher. A fraction of at least
six months shall be considered one whole year.
(Article 283, LC.)
Retrenchment

Temporary Retrenchment or Lay-Off

Article 283 of the Labor Code of the Philippines
speaks only of permanent retrenchment or lay-off.
There is no specific provision in the Labor Code that
governs temporary retrenchment, particularly the
requisites for its implementation and maximum
duration.
 Retrenchment
Redundancy
Redundancy is one of the authorized causes for termination
of employment under Article 283 of the Labor Code of the
Philippines.
Redundancy exists where the services of an employee are in
excess of what is reasonably demanded by the actual
requirements of the enterprise. A position is redundant
where it superfluous, and superfluity of a position or
positions may be the outcome of a number of factors, such as
over hiring of workers, decreased of volume business, or
dropping of a particular product line or service activity
previously manufactured or undertaken by the enterprise.
 Retrenchment
Downsizing
Rightsizing is downsizing in the belief that an enterprise really
should operate with fewer people. Dumbsizing is downsizing
that, in retrospect, failed to achieve the desired effect.
To reduce the effects of downsizing, have this advice for lay off
employees:
Immediately tell families
Evaluate reason for job loss
Deal with the emotions that accompany a layoff
Prepare for departure y by doing such things as securing references,
negotiating for severance package and taking advantage of
outplacement
Take a vacation or a short rest period to help prepare for the journey
ahead
Plan a new course of action and go forward with confidence
Employee Relations

The final phase in our scheme of HRM operations is

the employee relations function. Employee
relations (ER) has several major responsibilities.
Translating HRM functions into
practice
With labor unions. some employee relations
technique may not be applicable. For instance, in a
unionized setting, a specific grievance procedure
might be detailed in the labor-management
contract, and might involve the union,
management, and the allegedly wronged
employee.
In a nonunion environment, a similar procedure
might exist or the grievance might be handled one-
on-one. These may be subtle differences, but labor
relations requires a different set of competencies
and understanding.
 Translating HRM functions into
Inpractice
the non - union setting, however, we see employee relations
specialists performing many tasks. As mentioned earlier, one of
their key responsibilities is to ensure that open
communications permeates the organization. This entails
fostering an environment where employees talk directly to
supervisors and settle any differences that may arise. If
needed, employee relations representatives intervene to assist
in achieving a fair and equitable solution.
ER specialists are also intermediaries in helping employees
understand the rules. Their primary goal is to ensure that
policies and procedures are enforced properly, and to permit a
wronged employee a forum to obtain relief.
As part of this role, too, comes the disciplinary process. These
representatives see that appropriate disciplinary sanctions are
used consistently throughout the organization.
The key process that defines the HR strategy is ensuring an
effective and efficient organization through appropriate
people-job-organization fit.
Each and every HR plan focus on
1. Productivity
2. Performance
3. Satisfaction to further the objectives of the organization
through the optimal utilization of the human resources
 STRESS AND WORK-LIFE BALANCE
Stress is a common psychological feature in
almost every kind of work. Thats why industrial
psychologists also to deals with these stress
related features. Stress can be considered to be
physically, emotionally and psychologically
damaging leading to stress-related diseases
people develop later in life. Aside from health
concerns it may also decrease productivity rate
and affect the whole working process of the
affected individual or group.
Stress is categorized into positive and
negative stress:
Eustresscoined by Hans Selye
which literally means good stress.
Distress literally means bad
stress that is experience through
anxiety, sorrow or pain.
There were also different types of stress
according to its severity:
Acute Stress stress that usually occurs in a short period of time
that maybe caused by deadlines, work pressure, or minor
accidents.
Acute Episodic a more serious type of distress that occurs usually
to people that are constantly exposed to a state or disorganization.
They tend to be constantly late, worried, and under pressure.
Chronic Stress considered to be the most serious type of distress
for is exists for weeks, months, or even years. This due to poverty,
illness, family and marital problems.
Types of stress according to its severity:
Acute Stress stress that usually occurs in a short period of time
that maybe caused by deadlines, work pressure, or minor
accidents.
Acute Episodic a more serious type of distress that occurs usually
to people that are constantly exposed to a state or disorganization.
They tend to be constantly late, worried, and under pressure.
Chronic Stress considered to be the most serious type of distress
for is exists for weeks, months, or even years. This due to poverty,
illness, family and marital problems.
Individual Differences in Vulnerability to
Stress
Social Support System it involves ones network
within the society which includes his family, friends,
neighbors, and other community extensions.
Physical Condition people with better physical
conditions may suffer fewer effects of stress than
those who have poor physical condition.
Ability to Perform an individuals perception about
his ability and the difficulty of the task assigned to
him/her may affect ones vulnerability to stress.
 Personality personality types can also be related
to ones ability to tolerate stress.
Type A described to have a very high
competitive spirit with a constant sense of
urgency for almost everything. They may be
sometimes hostile but they manage to hide it
from others. They always in a state of tension
and stress.
Type B acts as the opposite of type A
personality for they are more relaxed and
calm.
Stress Within an Organization
psychologists identified different
causes of stress within the work place.
They were able to identified two
general types or work overload:
Qualitative Overload
Quantitative Overload
Task Demands
Role Demands
 Interpersonal Demands
Organizational Structure
Organizational Leadership
Burnout
It occurs in three different stages:
Emotional Exhaustionfeeling of being drained
and empty.
Cynicismlack of sensitivity towards others.
Futilityfeeling that all efforts exerted
previously was wasted and worthless.
 Organizational Approaches to Manage Stress
Psychologists proposed several techniques for managing
work-related stress:

Emotional Climate Controlorganizations must

develop programs that would provide sufficient
support to enable employees to adapt change.
Provision of Social Supportorganizations should
enhance social support systems by facilitating the
cohesiveness of work groups to improve each
others supportiveness to co-workers.
 Redefinition of Employee Roles organizations
must redefine roles to avoid role ambiguity and
provide precise scope and responsibilities for each
employee.
Elimination of Work Overload and Work Under
load providing proper selection and training for a
more equitable promotion decisions and fair
distribution of works.
Provision to Stressed Employeesprovide
counseling programs and trainings for stress-control
techniques and providing facilities for physical
exercises.
 Individual Approaches aside from organizational provision
to reduce and eliminate work-related stress, employees or
individuals must also do their part to address stress.
Relaxation Training employees should learn how to reduce stress
through systematically concentrating to tense and relax one body
part at a time.
Biofeedback involves the electronic measurement of internal
bodily processes to let the person understand more and learn to
control these internal processes.
Behavior Modification done through modification of behaviors in
dealing with certain situations that may be stressful.
Disciplines that Supports Work-Life
Balance
Self-Management managing ones self by
getting enough sleep, exercise and nutrition.
Being the captain of your own sheep.
Time-Management maximizing time use
every day. And supporting different
resources to keep pace all throughout the
day.
 Stress Management the ability to work
ourselves out of stressful and pressure filled
situations.
Change Management continuous adaptation to
new scenarios, methods, and environment to
avoid stress.
Technology Management Adaptations to new
technological advances and ensure that these
technologies serve us well rather than abuses us.
Leisure Management acknowledging the
importance of rest, relaxations and enjoyment.
 Job Enrichment
The practice of building motivating factors like responsibility, achievement and
recognition into job content. Job enrichment provides the worker with a more exciting
job and it increases his job satisfaction. An enriched job has any or all of the following
characteristics:
1. Direct feedback Which means employees receive immediate evaluation of their
work.
2. Client Relationship which means an employee is given a chance to serve an
internal and external client.
3. New Learning. Employee acquires new knowledge while doing his work.
4. Control over method employees has some control over which method to choose
to accomplish a task.
5. Control over scheduling- employee has the ability to schedule his work.
6. Unique Experience - the job has unique qualities or features , like the opportunity
to see the world.
7. Direct Communication authority- Job provides the employee the opportunity to
communicate directly with people who use their output.
8. Control over resources- employee has control over resources such as money ,
material, or people.
9. Personal Accountability employee is responsible for his or her result. He accepts
credits for doing a good job and blame for a poor job.
 Job Enrichment
Empowering and Involvement as a type of Job Enrichment
A managerial practice that leads to job enrichment is to
empower employees.
Empowerment is the process of sharing power with group
members, thereby enhancing their feelings of self efficacy.
Empowering workers usually enhances their motivation
because having more power is intrinsically motivating
Involving employees in decisions that affect them is a form
of empowerment and is also motivational.
Involvement leads to greater commitment and therefore
facilitates making possible a change such as a new work
method.
Job Characteristics Model
This term refers to the method of a job design that focuses
on the atsk and interpersonal demands of a job. This
method emphasizes the interaction between the individual
and the specific attributes of the job.
o The concept of job enrichment has been expanded to
the job characteristics model, a method of job design
that focuses on the task and interpersonal demands of a
job. The model is based on both needs theory and
expectancy theory, with its emphasis on workers looking
to satisfy needs through the job.
o The job characteristics theory maintains that there are
five core job characteristics of special importance to job
design. When these core job characteristics are high,
the job is said to be enriched.
Job Characteristics Model
The Five core job characteristics are defined as follows:
Skill variety- the degrees to which there are many skills to
perform.
Task Identity- the degree to which one worker is able to do a
complete job , from beginning to end, with the tangible and
possible outcome.
Task Significance- the degree to which the job has a substantial
impact on the lives or work of other people.
Autonomy- the degree which the job goives the employee
substantial freedom , independence and discretion in scheduling
the work and determining the procedures used in carrying it out.
Feedback- The degree to which a job provides direct information
about performance.
 Job Crafting
The traditional view of a job is that a competent worker
carefully follows a job description, and good performance
means that the person accomplishes what is specified in the
job description. A contemporary view is that job description
is only a guideline: The competent worker is not confined by
the constraints of a job description. He or she takes many
constructive activities not mentioned in the job description.
 Job crafting
Job crafting refers to the physical and mental changes
workers make in the task or relationship aspects of their job.
The most frequent purpose of crafting is to make the job
more meaningful or enriched.
Three common types of job crafting involve changing
1. Changing the number and type of job tasks
2. Changing the interaction with others on the job
3. Changing ones view of the job.
 ORGANIZATIONAL BEHAVIOR
MODIFICATION
One of the more elaborate systems for motivating employees is based on reinforcement
theory.
Organizational behavior modification (OB MOD) is the application of reinforcement theory
for motivating people in work settings.
Reinforcement theory may be briefly defined as the contention that behavior is determined
by its consequences . Simply stated a person tends to repeat a behavior that is accompanied
by a favorable consequences and tends not to repeat behavior that is accompanied by
unfavorable consequences.
Rules for the application of OB MOD
o Rule 1: Choose an appropriate reward or punishment
o Rule 2: Reinforce the behaviors you really want to encourage
o Rule 3: Supply ample feedback
o Rule 4 rewards should be commensurate with the good deed
o Rule 5: Schedule rewards intermittently
o Rule 6: Rewards and Punishments should follow the observed behavior closely in
time
o Rule 7: Make rewards visible to the recipient and to others.
o Rule 8: Change the rewards periodically
ORGANIZATIONAL BEHAVIOR
MODIFICATION
The four rewards groups in the study were
oRoutine pay for performance
oMonetary incentives based on the behavior mod
oSocial recognition, such as public compliments
oPerformance feedback
 MOTIVATION THROUGH RECOGNITON
AND PRIDE
Motivating workers by giving them praise and recognition
can be considered a direct application of positive
reinforcement.
Recognition as motivation
oRecognition is a strong motivator because it is normal
human need to crave recognition
oTo appeal to the recognition need of others, identify a
meritorious behavior and then recognize that behavior with
an oral, written, or material reward
MOTIVATION THROUGH RECOGNITON AND PRIDE
The following are several more points to consider to better
understand and implement reward and recognition programs:
1. Feedback is an essential part of recognition. (Specific
feedback about what the workers did right makes recognition
more meaningful.
2. Praise is one of the most powerful forms of recognition.
(Praise works well because it enhance our self esteem if the
praise is genuine)
3. Reward and recognition programs should be linked to
organizational goals. (linked to business strategy)
4. Employee input into what type or rewards and recognition
are valued is useful. (cross cultural factors can have a strong
impact on what form of reward or recognition is motivational)
5. It is important to evaluate the effectiveness of the reward
and recognition program. (it is useful to assess how well the
reward and recognition program is working.)
MOTIVATION THROUGH RECOGNITON AND PRIDE

Pride as a motivator
o Wanting to feel proud motivates many workers
even if pride is not exactly psychological need
oBeing proud of what you accomplish is more of an
intrinsic motivator than an extrinsic motivator such
as receiving a gift.
 MOTIVATION THROUGH FINANCIAL
INCENTIVES
Financial incentives are powerful tools of motivation.
They are monetary rewards paid to employees because
of the output they produce, skills, knowledge and
competencies or combination of these factors.
Financial incentives take the form of any or a
combination of the following :
1. Time rates
2. Payment by results
3. Performance and profit related pay
4. Skill/ competency based pay
5. Cafeteria or flexible benefits system
 MOTIVATION THROUGH FINANCIAL
INCENTIVES
Time rates
This type of monetary reward use the number of hours worked
as a means of determining rewards. It may be classified as hourly
rate or weekly wage or monthly salary.
The advantages of time rates are as follows:
oIt is open to inspection and equitable because employees doing
the same job will be on the same grade level.
oIt encourages the retention of human resources by stability and
this is because of the gradual increases in rewards within the
given grades.
oIt is relatively easy to administer and allows labor cost to be
predicted.
oIt does not emphasize quantity of output to the detriment of
quality
 MOTIVATION THROUGH FINANCIAL
INCENTIVES
Payment by Results
This scheme links pay to the quantity of the individual
output. An example is a commission paid to a salesman for
selling the companys product.
There is fairness because the level of reward is related to
the level of output; and
There are likely to be cost advantages since wages are
directly linked to production and less supervision is
required.
 MOTIVATION THROUGH FINANCIAL
INCENTIVES
Performance Related Pay
This scheme consider results or output plus actual behavior
in the job.
Most often, rewards consist of a lump sum, or a bonus as a
percentage of basic salary, with quality of performance
determining the magnitude of the percentage increase, or
alternatively accelerated movement up a pay scale.
The bonus is a reward given to employees from recent
performance rather than historical performance.
MOTIVATION THROUGH FINANCIAL
INCENTIVES
Profit Related pay
This is an organization wide scheme where pay is linked to
company profits.
Profit related pay takes the form of direct cash outlay, or
allocation of stock options
Stock option is a financial incentive that gives employees
the right to purchase a certain number of company shares
at a specified price, generally the market price of the stock
on the day the option is granted.
MOTIVATION THROUGH FINANCIAL
INCENTIVES
Profit Related pay
This is an organization wide scheme where pay is linked to
company profits.
Profit related pay takes the form of direct cash outlay, or
allocation of stock options
Stock option is a financial incentive that gives employees
the right to purchase a certain number of company shares
at a specified price, generally the market price of the stock
on the day the option is granted.
CONFLICT
Conflict is the psychological and behavioural reaction
to a perception that another person is keeping you from
reaching a goal, taking away your right to behave in
particular way, or violating the expectancies of a
relationship.
TYPES OF CONFLICT

oInterpersonal Conflict - occurs between two

individuals
oIndividual-Group Conflict can occur between an
individual and a group just as easily as between
two individuals.
oGroup-Group conflict occurs between two or
more groups
 CAUSES OF CONFLICT
Competition for Resources when the demand for a resource exceeds its
supply, conflict occurs.
Task Interdependence comes when the performance of some group
members depends on the performance of other group members.
Jurisdictional Ambiguity is found when geographical boundaries or lines
of authority are unclear.
Communication Barriers- Physical, cultural, and psychological obstacles
that interfere with successful communication and create such conflict.
Beliefs- beliefs systems of individuals or groups, Conflict is most likely to
occur when individual or groups believe that they
o Are superior to other people or groups
o Have mistreated others are vulnerable to others and are in harms
way.
o Cannot trust others
o Are helpless or powerless
 CAUSES OF CONFLICT
Personality- Relatively stable traits possessed by an
individuals
o Conflict is often the result of people with incompatible
personalities who must work together.
o Berstein and Rozen (1992) describe in great detail
three types of Neandertals at work- Rebels,
believers, and competitors.
o Brinkman and Kirschner (2006) developed
classification of difficult people as basis for the
difficult personality
 CAUSES OF CONFLICT
Brinkman and Kirschner (2006) developed classification of difficult people as basis for the difficult personality
o High needs for control- obsessed with completing a task and take pride in getting a job done quickly.
o Tank- gets things done quickly by giving orders, being pushy, yelling and at times being too aggressive.
o Sniper- controls people by sarcasm, embarrassment, and humiliation.
o Know-it all- controls others by dominating conversations, not listening to others ideas and rejecting arguments
counter to her position.
o High needs for Perfection- obsessed with completing a task correctly.
Whiner
No person
Nothing Person
High Needs for Approval
Yes person
Maybe Person
Approval or Attention form
Grenade
Friendly sniper
Think they know it -all
 CONFLICT STYLES
Avoiding Styles - choose to ignore the conflict and hope it will
resolve itself.
Accommodating Style when a person is so intent on settling a
conflict that he gives in and risks hurting himself.
Forcing Style handles conflict in a win-lose fashion and does
what it takes to win with little regard for the other person.
Collaborating Style wants to win but also wants to see the
other person win.
Compromising Style adopts give-and-take tactics that enable
each side to get some of what it wants but not everything it
wants.
Determining Conflict Style a persons method of dealing with
conflict at work can be measured by the Rahim Organizational
Conflict Inventory or the Cohen Conflict Response Inventory.
Group Problem Solving and Decision
Making
Interacting Groups members should interact
with each other in order to discuss encountered
conflicts and provide solutions.
Brain Storming a technique where all members
are gathered to come up and share their ideas
without any judgment of criticism. This technique
generates as many ideas as possible where
members are asked to be creative and
imaginative.
 Nominal Group Technique a technique
that involves problem identification, solution
generation, and decision making. Its purpose
is to make a decision quickly, as by a vote,
but want everyone's opinions taken into
account. Every member should give their
view of the solution, with a short
explanation. Then, duplicate solutions are
eliminated from the list of all solutions, and
the members proceed to rank the eliminated
solutions.
 Delphi Technique a technique usually
done through mails or emails where ideas
were presented to the different members
of the team and each of them also gives
their feedbacks through mails or emails.
This is done in order to avoid physical
conflicts and problems within the different
members.
Electronic Meeting interactions and
meetings done through the help of
computers and technology.