RINGKASAN MATERI KULIAH

PROGRAM STUDI MAGISTER MANAJEMEN

STRATEGIC HUMAN RESOURCE

MANAGEMENT

Dosen :
Prof. Dr. Ismuhadjar, SE, MM

FAKULTAS EKONOMI DAN BISNIS

UNVERSITAS PERSADA INDONESIA
YAYASAN ADMINISTRASI INDONESIA
JAKARTA
PART - I
 1.2. HUMAN RESOURCE MANAGEMENT

DEFINISI :
• THE PROCESS OF ACQUIRING, TRAINING, APPRAISING, AND COMPENSATING
EMPLOYEES, AND OF ATTENDING TO THEIR LABOR RELATIONS, HEALTH AND
SAFETY, AND FAIRNESS CONCERNS (Dessler, Gary, 2011 : 31).

• HRM INVOLVES THE PRODUCTIVE USE OF PEOPLE IN ACHIEVING THE

ORGANIZATION’S STRATEGIC OBJECTIVES AND SATISFACTION OF INDIVIDUAL
EMPLOYEE NEEDS (Stone, Raymond J, 2008 : 3)
• OBJECTIVES : MEASURABLE TARGETS TO BE ACHIEVED WITHIN A CERTAIN
TIME FRAME.

• FORMAL SYSTEMS FOR THE MANAGEMENT OF PEOPLE WITHIN AN

ORGANIZATION (Bateman & Snell, 2009 : 355)
• EFFECTIVE ORGANIZATIONS ARE INCREASINGLY REALIZING THAT, OF THE
VARIED FACTORS THAT CONTRIBUTE TO PERFORMANCE, THE HUMAN
ELEMENT IS CLEARLY THE MOST CRITICAL ; ITS SUCCESS IS DETERMINED
BY THE DECISIONS ITS EMPLOYEES MAKE AND THE BEHAVIOR IN WHICH
THEY ENGAGE ; ADOPTING A STRATEGIC VIEW OF HR, IN LARGE PART,
INVOLVES CONSIDERING EMPLOYEES AS HUMAN “ASSETS” AND
DEVELOPING APPROPRIATE POLICIES AND PROGRAMS AS INVESTMENTS
TO THESE ASSETS TO INCREASE THEIR VALUE TO THE ORGANIZATION AND
THE MARKETPLACE (Mello, JA, 2011 : 4)

• HUMAN CAPITAL : THE KNOWLEDGE, EDUCATION, TRAINING, SKILLS, AND

EXPERTISE OF A FIRM’S WORKERS (Dessler, G, 2011 : 39)
HRM FUNCTION (Nankervis, Compton & Baird. 2008 : 9)

THE FOCUS OF HRM TODAY IS ON THE EFFECTIVE OVERALL

MANAGEMENT OF AN ORGANIZATION’S WORKFORCE IN ORDER
TO CONTRIBUTE TO THE ACHIEVEMENT OF DESIRED OBJECTIVES
AND GOALS.
HRM PROCESS

USING THE MANAGEMENT FUNCTIONS (PLANNING –

ORGANIZING – LEADING / ACTUATING – CONTROL) TO PROCESS
THE OPERATIONAL FUNCTIONS (PROCUREMENT –
DEVELOPMENT – COMPENSATION – EMPLOYEE / INDUSTRIAL
RELATION – SEPARATION ) OF HRM.
HR MANAGER’S PROFICIENCIES / SKILLS
• HR PROFICIENCIES :
Traditional knowledge and skills in areas such as employee selection, training,
compensation.
• BUSINESS PROFICIENCIES
– To be familiar with strategic planning, marketing, production, and finance.
– Be able to “Speak the CFO’S Language”, by explaining human resource activities in
financially measurable terms, such as return on investment, payback period, cost per
unit of service.
• LEADERSHIP PROFICIENCIES
– The ability to work with and lead management groups
– To drive the changes required, such as to implement new world- class employee
screening and training system
• LEARNING PROFICIENCIES
The ability to stay abreast of and apply all the new technologies and practices affecting the
profession.
• MANAGING ETHICS
Ethics refers to the standards someone uses to decide what his or her conduct should be
STRATEGIC HUMAN RESOURCE MANAGEMENT

THE CENTRAL IDEA BEHIND STRATEGIC HUMAN

RESOURCE MANAGEMENT IS THAT ALL INISIATIVES
INVOLVING HOW PEOPLE ARE MANAGED NEED TO
BE ALIGNED WITH AND IN SUPPORT OF THE
ORGANIZATION’S OVERALL STRATEGY.
 STRATEGIC MANAGEMENT
• STRATEGIC MANAGEMENT IS THE PROCESS BY WHICH
ORGANIZATIONS ATTEMPT TO DETERMINE WHAT NEEDS TO
BE DONE TO ACHIEVE CORPORATE OBJECTIVES AND HOW
THESE OBJECTIVES ARE TO BE MET (Mello, JA, 2011 : 102)
• IT IS A PROCESS BY WHICH SENIOR MANAGEMENT
EXAMINES THE ORGANIZATION AND THE ENVIRONMENT IN
WHICH IT OPERATES AND ATTEMPTS TO ESTABLISH AN
APPROPRIATE AND OPTIMAL “FIT” BETWEEN THE TWO TO
ENSURE THE ORGANIZATION’S SUCCESS.
• STRATEGIC PLANNING IS USUALLY DONE OVER THREE – TO
FIVE YEARS TIME HORIZONS BY SENIOR MANAGEMENT.
 MODELS OF STRATEGY
TWO MAJOR MODELS OUTLINE THE PROCESS OF WHAT STRATEGY IS AND HOW IT SHOULD BE
DEVELOPED :

THE INDUSTRIAL ORGANIZATION (I/O) MODEL. (TRADITIONAL MODEL)

• THE PRIMARY DETERMINANT OF AN ORGANIZATION’S STRATEGY SHOULD BE THE EXTERNAL
ENVIRONMENT, WHICH HAVE A GREATER INFLUENCE ON PERFORMANCE THAN INTERNAL
DECISIONS MADE BY MANAGERS.
• THE EXTERNAL ENVIRONMENT PRESENTS THREATS AND OPPORTUNITIES TO ORGANIZATION
• ORGANIZATIONS WITHIN AN INDUSTRY CONTROL OR HAVE EQUAL ACCESS TO RESOURCES.
• THIS RESOURCES ARE HIGHLY MOBILE BETWEEN FIRMS.
• ORGANIZATIONS SHOULD CHOOSE TO LOCATE THEMSELVES IN INDUSTRIES THAT PRESENT
THE GREATEST OPPORTUNITIES, AND LEARN TO UTILIZE THEIR RESOURCES TO SUIT THE NEEDS
OF THE ENVIRONMENT.
• AN ORGANIZATION CAN BE MOST SUCCESSFUL BY OFFERING GOODS AND SERVICES AT A
LOWER COST THAN ITS COMPETITORS, OR BY DIFFERENTIATING ITS PRODUCTS FROM THOSE
OF COMPETITORS SUCH THAT CONSUMERS ARE WILLING TO PAY A PREMIUM PRICE.
 THE RESOURCE – BASED VIEW (RBV) MODEL

• THE ORGANIZATION’S RESOURCES AND CAPABILITIES

(INCLUDING THE HUMAN RESOURCES), RATHER THAN
ENVIRONMENTAL CONDITIONS, SHOULD BE THE BASIS FOR
ORGANIZATIONAL DECISIONS.
• ORGANIZATIONS HENCE GAIN COMPETITIVE ADVANTAGE
THROUGH THE ACQUISITION AND VALUE OF THEIR
RESOURCES.
• THIS APPROACH IS CONSISTENT WITH THE INVESTMENT
PERSPECTIVE OF HUMAN RESOURCE MANAGEMENT; AN
UNDERSTANDING OF THIS THEORITICAL FOUNDATION IS
INDISPENSABLE WHEN ATTEMPTING TO IMPLEMENT THE
CONCEPTS OF STRATEGIC HUMAN RESOURCE MANAGEMENT
IN THE WORKPLACE.
I. MISSION STATEMENT
• MISSION STATEMENT EXPLAINS IN VERY SIMPLE TERMS THE ORGANIZATION’S
PURPOSE AND REASON FOR EXISTENCE.
• USUALLY VERY BROAD AND GENERALLY LIMITED TO NO MORE THAN A COUPLE
OF SENTENCES
• IT SERVES AS FOUNDATION FOR EVERYTHING THAT THE ORGANIZATION DOES.
• EXAMPLES OF MISSION STATEMENT
SOLECTRON MISSION STATEMENT
“OUR MISSION IS TO PROVIDE WORLDWIDE RESPONSIVENESS TO OUR
CUSTOMERS BY OFFERING HIGH QUALITY, LOWEST TOTAL COST, CUSTOMIZED,
INTEGRATED DESIGN, SUPPLY-CHAIN AND MANUFACTURING SOLUTIONS
THROUGH LONG-TERM PARTNERSHIPS BASED ON INTEGRITY AND ETHICAL
BUSINESS PRACTICES.”
STARBUCKS’S MISSION STATEMENT :
“TO ESTABLISH STARBUCKS AS THE PREMIER PURVEYOR OF THE FINEST COFFEE IN
THE WORLD WHILE MAINTAINING OUR UNCOMPROMISING PRINCIPLES WHILE
WE GROW.”
II. ANALYSIS OF ENVIRONMENT
• DECISION MAKERS NEED TO ANALYZE A VARIETY OF DIFFERENT
COMPONENTS OF THE EXTERNAL ORGANIZATION, IDENTIFY KEY
“PLAYERS” WITHIN THOSE DOMAINS, AND BE VERY COGNIZANT OF
BOTH THREATS AND OPPORTUNITIES WITHIN THE ENVIRONMENT.
• THE CRITICAL COMPONENTS OF THE EXTERNAL ENVIRONMENT
 COMPETITION AND INDUSTRY STRUCTURE : WHO THE CHIEF
COMPETITORS ARE, WHERE “POWER” LIES WITHIN THE INDUSTRY,
BARRIERS TO ENTRY, OPPORTUNITIES TO ACQUIRE AND MERGE WITH
OTHER ORGANIZATIONS, CRITICAL SUCCESS FACTORS WITHIN THE
INDUSTRY, AND INDUSTRY “MATURITY LEVEL”.
 GOVERNMENT REGULATION : THE SCOPE OF LAWS AND
REGULATIONS THAT MAY IMPACT WHAT THE ORGANIZATION DOES,
AND TO ESTABLISH BENEFICIAL RELATIONSHIPS WITH AGENCIES THAT
ENFORCE THESE LAWS AND LEGISLATIONS WHO PROPOSE, PASS,
AMEND, AND REPEAL SUCH LAWS.
• TECHNOLOGICAL SECTORS : AUTOMOTION PROCESSES, NEW
MATERIALS AND TECHNIQUES FOR PRODUCING GOODS AND
SERVICES, AND IMPROVE PRODUCTS AND SPECIAL FEATURES.
• MARKET TRENDS : EXAMINING WHO EXISTING CUSTOMERS ARE,
THEIR NEEDS AND WANTS, HOW WELL SATISFIED THEY ARE,
LOOKING AT POTENTIAL CUSTOMERS WHO DO NOT UTILIZE THE
PRODUCT OR SERVICE, HOW EXISTING PRODUCTS AND SERVICES
CAN BE ADOPTED OR MODIFIED TO ADDRESS THE NEEDS OF
DIFFERENT TARGET GROUPS OF CUSTOMERS, DEVELOPING
STRATEGIES TO INCREASE THE RATE OR LEVEL OF USAGE BY
CURRENT CUSTOMERS.
• ECONOMIC TRENDS : FORECASTING THE CONDITION AND
DIRECTION OF THE NATIONAL AND LOCAL ECONOMY TO PLAN
WHAT MAY HAPPEN IN THE ECONOMY THAT CAN HAVE A
SIGNIFICANT IMPACT ON OPERATIONS.
III. ORGANIZATION SELF-ASSESSMENT
• THE KEY OUTCOME IS FOR DECISION-MAKERS TO IDENTIFY THE
ORGANIZATION’S PRIMARY STRENGTHS AND WEAKNESSES, AND FIND WAY
TO CAPITALIZE ON THE STRENGTHS AND MINIMIZE THE WEAKNESSES.
• INCLUDES : RESOURCES (FINANCIAL, PHYSICAL, HUMAN, TECHNOLOGICAL,
AND CAPITAL : ALL OTHER ITEMS OF VALUES, INCLUDING BRAND NAMES,
REPUTATIONS WITH CUSTOMERS, RELATIONSHIPS WITH CONSTITUENTS IN
THE ENVIRONMENT, AND GOODWILL, INTANGIBLE ASSETS)
• MANAGEMENT SYSTEMS (CULTURE, ORGANIZATION STRUCTURE, POWER
DYNAMICS AND POLICIES TO SEE WHO REALLY CONTROLS WHAT HAPPENS
IN THE ORGANIZATION, DECISION MAKING PROCESS, THE ORGANIZATION’S
PAST STRATEGY AND PERFORMANCE, AND THE ORGANIZATION’S WORK
SYSTEMS).
IV. ESTABLISHING GOALS AND OBJECTIVES

GOALS SHOULD BE SPECIFIC AND MEASURABLE, AND IDENTIFY

HOW PERFORMANCE TOWARD THESE GOALS WILL BE
MEASURED AND EVALUATED (SMART GOALS). GOALS ALSO NEED
TO BE FLEXIBLE, CAN BE ADJUSTED UPWARD AS WELL AS
DOWNWARD IN RESPONSE TO HOW EVENTS IN THE
ENVIRONMENT HAVE UNFOLDED.
V. SETTING STRATEGY
STRATEGY IS HOW THE ORGANIZATION INTENDS TO ACHIEVE ITS
GOALS : THE MEANS IT WILL USE, THE COURSES OF ACTION IT WILL
TAKE, AND HOW IT WILL GENERALLY OPERATE AND COMPETE
CONSTITUTE THE ORGANIZATION’S STRATEGY.
THE STRATEGIC CHOICES AN ORGANIZATION MAKES THEN NEED TO
BE INCORPORATED INTO A GENERAL HUMAN RESOURCE STRATEGY.
IDEALLY, THE HR STRATEGY WILL SERVE AS A FRAMEWORK BY WHICH
THE ORGANIZATION CAN DEVELOP A CONSISTENT AND ALIGNED SET
OF PRACTICES, POLICIES, AND PROGRAMS THAT WILL ALLOW
EMPLOYEES TO ACHIEVE THE ORGANIZATION’S OBJECTIVES. IDEALLY,
HR STRATEGY WILL SERVE TO ENSURE A “FIT” BETWEEN CORPORATE
STRATEGY AND INDIVIDUAL HR PROGRAMS AND POLICIES.
CORPORATE STRATEGY
• DIFFERENT TYPES OF ORGANIZATION STRATEGIES REQUIRE
DIFFERENT TYPE OF HR PROGRAMS.
• THREE DIFFERENT GENERIC ORGANIZATION STRATEGIES, AND
EACH WOULD REQUIRE A SIGNIFICANTLY DIFFERENT
APPROACH TO MANAGING PEOPLE.
1. GROWTH
• GROWTH CAN ALLOW AN ORGANIZATION TO REAP THE BENEFITS OF
ECONOMIC OF SCALE, TO ENHANCE ITS POSITION IN THE INDUSTRY VIS-
A-VIS ITS COMPETITORS, AND TO PROVIDE MORE OPPORTUNITIES FOR
PROFESSIONAL DEVELOPMENT AND ADVANCEMENT TO ITS EMPLOYEES.
• GROWTH CAN BE ACHIEVED INTERNALLY BY FURTHER PENETRATING
EXISTING MARKETS, DEVELOPING NEW MARKETS, OR DEVELOPING NEW
PRODUCTS OR SERVICES TO SELL IN EXISTING AND/OR NEW MARKETS.
• CHIEF STRATEGIC HR ISSUES ASSOCIATED WITH GROWTH STRATEGY
INVOLVE :
 ADEQUATE PLANNING TO ENSURE THAT NEW EMPLOYEES ARE HIRED
AND TRAINED IN A TIMELY MANNER TO HANDLE MARKET DEMAND,
 ALTERING CURRENT EMPLOYEES ABOUT PROMOTION AND
DEVELOPMENT OPPORTUNITIES, AND
 ENSURING THAT QUALITY AND PERFORMANCE STANDARDS ARE
MAINTAINED DURING PERIODS OF RAPID GROWTH.
 EXTERNAL GROWTH COMES FROM ACQUIRING OTHER
ORGANIZATIONS, DONE WITH COMPETITORS OR WITH
ORGANIZATIONS THAT MIGHT SUPPLY RAW MATERIALS OR BE PART
OF THE ORGANIZATION’S DISTRIBUTION CHAIN (CALLED VERTICAL
INTEGRATION)
 TWO KEY STRATEGIC HR ISSUES ASSOCIATED WITH EXTERNAL
GROWTH :
FIRST : MERGING DISSIMILAR HR SYSTEMS FROM DIFFERENT
ORGANIZATIONS. IT IS PROBABLE THAT TWO DIFFERENT SYSTEMS
EXISTED FOR STAFFING, COMPENSATION, PERFORMANCE
MANAGEMENT, AND EMPLOYEE RELATIONS, AND APPROPRIATE NEW
SYSTEMS MAY OR MAY NOT BE ONE OF THE PREVIOUS SYSTEMS OR
EVEN HYBRID OF SUCH.
SECOND : MERGER AND ACQUISITIONS USUALLY RESULT IN THE
DISMISSED OF EMPLOYEES. CRITICAL DECISIONS WILL NEED TO BE
MADE CONCERNING WHO IS RETAINED AND WHO IS LET GO.
2. STABILITY/ MAINTAINING THE STATUSQUO

• AN ORGANIZATION PURSUING THIS STRATEGY MAY SEE VERY LIMITED

OPPORTUNITIES IN ITS ENVIRONMENT AND DECIDE TO CONTINUE
OPERATIONS AS IS.
• THE CRITICAL STRATEGIC HR ISSUE :
THE FACT THAT AN ORGANIZATION THAT IS NOT GROWING WILL ALSO BE
LIMITED IN THE OPPORTUNITIES IT IS ABLE TO OFFER TO ITS EMPLOYEES ;
FEWER OPPORTUNITIES FOR UPWARD MOBILITY, AND EMPLOYEES MAY
DECIDE TO LEAVE AND PURSUE OPPORTUNITIES WITH OTHER
EMPLOYERS.
=> IT IS CRITICAL FOR THE EMPLOYER TO IDENTIFY KEY EMPLOYEES AND
DEVELOP A SPESIFIC RETENTION STRATEGY TO ASSIST IN KEEPING THEM.
3. TURNAROUND OR RETRENCHMENT STRATEGY

THE ORGANIZATION DECIDES TO DOWNSIZE OR STREAMLINE ITS

OPERATIONS IN AN ATTEMPT TO FORTIFY ITS BASIC COMPETENCY. DECISION-
MAKERS MAY SEE THE ENVIRONMENT AS OFFERING FAR MORE THREATS
THAN OPPORTUNITIES AND THE ORGANIZATION’S WEAKNESSES AS
EXEEDING ITS STRENGTHS. THEREFORE, THE ORGANIZATION TRIES TO
RETOOL ITSELF TO CAPITALIZE ON ITS EXISTING STRENGTHS AND REMAIN
SOLVENT. A KEY ISSUES THAT NEEDS TO BE ADDRESSED IS COST-CUTTING; IN
MANY ORGANIZATIONS, PAYROLL IS THE CHIEF EXPENSE.
=> THE ORGANIZATION MUST BE CAREFUL :
• TO ADHERE TO ALL LAWS THAT REGULATE THE EMPLOYMENT
RELATIONSHIP IN SELECTING INDIVIDUALS TO BE TERMINATED, AND
• TO DEVELOP A STRATEGY TO MANAGE THE “SURVIVORS”.
BUSINESS UNIT STRATEGIES
• THERE IS A SIGNIFICANT AND GROWING TREND FOR LARGER
ORGANIZATIONS TO BREAK THERE OPERATIONS INTO SMALLER,
MORE MANAGEABLE, AND MORE RESPONSIVE UNITS; SUBDIVISIONS
ARE OFTEN ESTABLISHED BY PRODUCT OR SERVICE, CUSTOMER
GROUP, OR GEOGRAPHIC REGION.
IN ADDITION TO THE GENERAL – CORPORATE – LEVEL STRATEGY
MANY INDIVIDUAL BUSINESS UNITS OR PRODUCT, SERVICE, OR
CUSTOMER DIVISIONS DEVELOP A MORE SPECIFIC STRATEGY TO FIT
THE CIRCUMSTANCES OF THEIR MARKETPLACE AND COMPETITIVE
ENVIRONMENT.
• THREE DIFFERENT BUSINESS UNIT STRATEGIES THAT REQUIRE
CORRESPONDINGLY DIFFERENT STRATEGIC APPROACHES TO HR :
COST LEADERSHIP – DIFFERENTATION – FOCUS STRATEGY.
1. COST LEADERSHIP
• THE ORGANIZATION ATTEMPTS TO INCREASE ITS EFFICIENCY, CUT COST,
AND PASS THE SAVINGS ON TO THE CUSTOMER. IT ASSUMES THAT THE
PRICE ELASTICITY OF DEMAND FOR ITS PRODUCTS IS HIGH => A SMALL
CHANGE IN PRICE WILL SIGNIFICANTLY AFFECT CUSTOMER DEMAND.
IT ALSO ASSUMES THAT CUSTOMERS ARE MORE PRICE-SENSITIVE THAN
BRAND-LOYAL,
• THIS TYPE OF ORGANIZATION WOULD CENTER ITS HR STRATEGY SHORT-
TERM, RATHER THAN LONG-TERM. PERFORMANCE MEASURES THAT
FOCUSED ON RESULTS. BECAUSE EFFICIENCY IS THE NORM, JOB
ASSIGNMENTS WOULD BE MORE SPECIALIZED, BUT EMPLOYEES MIGHT BE
CROSS-TRAINED DURING SLACK OR DOWNTIME PERIODS.
2. DIFFERENTIATION
• THE ORGANIZATION DISTINGUISHES ITS PRODUCT OR SERVICE
FROM THOSE OF COMPETITORS OR, AT LEAST, ATTEMPTS TO
MAKE CONSUMERS PERCIEVE THAT THERE ARE DIFFERENCES.
=> ALLOWS THE ORGANIZATION TO DEMAND A PREMIUM
PRICE OVER THE PRICE CARGED BY COMPETITORS AND
ATTEMPTS TO GAIN THE LOYALTY OF CONSUMERS
TOWARD A PARTICULAR BRAND.
• WITH THIS TYPE OF STRATEGY, CREATIVITY AND INNOVATION
IN PRODUCT DESIGN OR SERVICE DELIVERY ARE IMPORTANT.
=> THE ORGANIZATION SHOULD OFFER INCENTIVES AND
COMPENSATION FOR CREATIVITY.
MEASURES FOR PERFORMANCE MIGHT BE MORE LONG TERM IN
ESTABLISHING AND BUILDING BRAND NAME.
STAFFING MAY FOCUS MORE ON EXTERNAL HIRING AND
RECRUITING INDIVIDUALS WHO BRING FRESH, UNIQUE,
OUTSIDE PERSPECTIVE TO THE ORGANIZATION RATHER THAN
BEING BOUND BY EXISTING WAYS OF DOING THINGS.
3. FOCUS STRATEGY
• DIFFERENT SEGMENTS OF THE MARKET HAVE DIFFERENT NEEDS
AND ATTEMPTS TO SATISFY ONE PARTICULAR GROUP ; A
RESTOURANT THAT TARGETS FAMILIES, A CLOTHING STORE THAT
TARGETS LARGER INDIVIDUALS, OR RETAIL BUSINESS THAT
TARGETS A PARTICULAR ETHNIC GROUP.
THE KEY STRATEGIC HR ISSUE IS ENSURING THAT EMPLOYEES
ARE VERY AWARE OF WHAT MAKES THE PARTICULAR MARKET IS
UNIQUE. TRAINING AND ENSURING CUSTOMER SATISFACTION
ARE CRITICAL FACTORS IN THIS STRATEGY.
• AN ORGANIZATION OFTEN ATTEMPTS TO HIRE EMPLOYEES WHO
ARE PART OF THE TARGET MARKET AND THEREFORE ARE ABLE
TO EMPHATIZE WITH CUSTOMERS.
STRATEGIC ROLE OF HUMAN RESOURCE
MANAGEMENT
BARRIERS TO STRATEGIC HR
MANY ORGANIZATIONS HAVE A DIFFICULT TIME TAKING A STRATEGIC
APPROACH TO HR. A NUMBER OF REASONS CONTRIBUTE TO THIS :
1.MOST ORGANIZATIONS ADOPT A SHORT-TERM MENTALITY AND FOCUS ON
CURRENT PERFORMANCE; PERFORMANCE EVALUATIONS AND
COMPENSATION THROUGHOUT ORGANIZATIONS TEND TO BE BASED ON
CURRENT PERFORMANCE, AS EMPHASIZED BY MOST SHAREHOLDERS AND
CAPITAL MARKET (WALL STREET, BURSA EFEK INDONESIA) => QUARTERLY
MEASURES OF PROFITABILITY AND RETURN ON INVESTMENT.
2.THE FACT THAT MANY HR MANAGERS DO NOT THINK STRATEGICALLY, GIVEN
THEIR SEGMENTED UNDERSTANDING OF THE ENTIRE BUSINESS. HR
MANAGERS OFTEN HAVE INSUFFICIENT GENERAL MANAGEMENT TRAINING
TO UNDERSTAND THE ENTIRE ORGANIZATION AND THE ISSUES AND
CHALLENGES BEING EXPERIENCED IN THE FINANCE, OPERATIONS, AND
MARKETING DEPARTMENTS. CONSEQUENTLY, THEIR ABILITY TO THINK
STRATEGICALLY MAY BE IMPAIRED, AND THEIR ABILITY TO INFLUENCE
COLLEAGUES IN OTHER FUNCTIONS MAY BE LIMITED.
3.MOST SENIOR MANAGERS LACK APPRECIATION FOR THE VALUE OF HR AND ITS ABILITY
TO CONTRIBUTE TO THE ORGANIZATION FROM A STRATEGIC PERSPECTIVE. MANY
SIMPLY UNDERSTAND THE TRADITIONAL OR OPERATIONAL FUNCTION OF HR AND FAIL
TO REALIZE THE CONTRIBUTIONS HR CAN MAKE AS A STRATEGIC PARTNER.
4.FEW FUNCTIONAL MANAGERS SEE THEMSELVES AS HR MANAGERS AND ARE
CONCERNED MORE WITH TECHNICAL ASPECTS OF THEIR AREAS OF RESPONSIBILITY
THAN THE HUMAN ASPECTS.
5.THE DIFFICULTY IN QUANTIFYING MANY OF THE OUTCOMES AND BENEFITS OF HR
PROGRAMS.
6.THE FACT THAT HUMAN ASSETS ARE NOT OWNED BY ORGANIZATION AND, THEREFORE,
ARE PERCIEVED AS A HIGHER RISK INVESTMENT THAN CAPITAL ASSETS.
7.STRATEGIC HR MAY BE RESISTED BECAUSE OF THE INCENTIVE FOR CHANGE THAT MIGHT
ARISE. TAKING A STRATEGIC APPROACH TO HR MAY MEAN MAKING DRASTIC CHANGES
IN HOW WORK IS ORGANIZED; HOW EMPLOYEES ARE HIRED, TRAINED, AND
DEVELOPED; HOW PERFORMANCE IS MEASURED; HOW EMPLOYEES ARE
COMPENSATED; STANDARDS OF PERFORMANCE; AND RELATIONS BETWEEN EMPLOYEES
AND SUPERVISORS AND AMONG EMPLOYEES THEMSELVES. BECAUSE PEOPLE TEND TO
BE CREATURES OF HABIT AND ENJOY MAINTAINING THE STATUS QUO-PARTICULARLY
OLDER WORKERS AND THOSE WITH LESS TRAINING AND SKILLS. ORGANIZATIONS
OFTEN FIND RESISTANCE TO ANY CHANGE INITIATIVES.
SUMMARY OF BARRIES TO STRATEGIC HR
• SHORT – TERM MENTALITY/ FOCUS ON CURRENT PERFORMANCE
• INABILITY OF HR TO THINK STRATEGICALLY
• LACK OF APPRECIATION OF WHAT HR CAN CONTRIBUTE
• FAILURE TO UNDERSTANDING GENERAL MANAGER’S ROLE AS AN HR
MANAGER
• DIFFICULTY IN QUANTIFYING MANY HR OUTCOMES.
• PERCEPTION OF HUMAN ASSETS AS HIGHER-RISK INVESTMENTS
• INCENTIVES FOR CHANGE THAT MIGHT ARISE.
 HUMAN RESOURCE PLANNING
• THE SENIOR HR PROFESSIONAL AS A VITAL MEMBER OF THE TOP MANAGEMENT
TEAM, SHOULD ALSO BE HEAVILY INVOLVED IN CORPORATE OR BUSINESS UNIT
STRATEGIC PLANNING SO THAT THE TOP MANAGEMENT TEAM IS ABLE TO INCLUDE
HUMAN RESOURCE MANAGEMENT CONCERNS IN ITS OVERALL PLANNING.

• THE FIRST COMPONENT OF HUMAN RESOURCE MANAGEMENT STRATEGY IS

HUMAN RESOURCE PLANNING. ALL OTHER FUNCTIONAL HR ACTIVITIES, SUCH AS
STAFFING, TRAINING, PERFORMANCE MANAGEMENT, COMPENSATION, LABOR
RELATIONS, AND EMPLOYEE SEPARATION, ARE DERIVED AND SHOULD FLOW FROM
THE HUMAN RESOURCE PLANNING PROCESS.

• HUMAN RESOURCE PLANNING IS A PROACTIVE PROCESS ; IT ATTEMPTS TO PLAN

AND ANTICIPATE WHAT MIGHT HAPPEN IN THE VARIOUS DOMAINS OF THE
ORGANIZATION’S INTERNAL AND EXTERNAL ENVIRONMENTS AND TO DEVELOP
PLANS TO ADDRESS THESE EVENTS PRIOR TO THEIR ACTUALLY HAPPENING.
• BECAUSE HR PLANNING INVOLVES MAKING ASSUMPTIONS ABOUT THE FUTURE,
PARTICULARY THE STATUS OF THE ECONOMY, COMPETITION, TECHNOLOGY,
REGULATION, AND INTERNATIONAL OPERATIONS AND RESOURCES, IT IS CRITICAL
THAT ALL HR PLANNING INITIATIVES BE FLEXIBLE. TO FACILITATE THIS FLEXIBILITY,
KEY DECISION MAKERS IN THE ORGANIZATION SHOULD CLARIFY AND WRITE
DOWN ALL ASSUMPTIONS THEY MAKE ABOUT THE ENTERNAL ENVIRONMENT
AND THE ORGANIZATION WHEN DEVELOPING THE HR PLAN.

• HR PLANNING INVOLVES PLANNING FOR THE DEPLOYMENT OF THE

ORGANIZATION’S HUMAN CAPITAL IN THE MOST EFFECTIVE AND EFFICIENT WAYS,
IN LINE WITH ORGANIZATION AND/ OR BUSINESS UNIT STRATEGY.
OBJECTIVES OF HUMAN RESOURCE PLANNING

FIVE MAJOR OBJECTIVES OF HR. PLANNING :

• PREVENT OVERSTAFFING AND UNDERSTAFFING.
• ENSURE THE ORGANIZATION HAS THE RIGHT EMPLOYEES WITH THE RIGHT
SKILLS IN THE RIGHT PLACES AT THE RIGHT TIME.
• ENSURE THE ORGANIZATION IS RESPONSIVE TO CHANGES IN ITS
ENVIRONMENT.
• PROVIDE DIRECTION AND COHERENCE TO ALL HR ACTIVITIES AND
SYSTEMS.
• UNITE THE PERSPECTIVES OF LINE AND STAFF MANAGERS.
 DESIGN AND REDESIGN OF WORK SYSTEMS

• THE SECOND COMPONENT IN THE DEVELOPMENT OF HUMAN RESOURCE

MANAGEMENT STRATEGY, IN ADDITION TO HUMAN RESOURCE PLANNING, IS THE
DESIGN OF WORK SYSTEM : HOW TASKS AND RESPONSIBILITIES SHOULD BE
ASSIGNED TO INDIVIDUALS AND GROUPS WITHIN THE ORGANIZATION, AND
DECIDE HOW TO REDESIGN EXISTING WORK SYSTEMS.
• WORK SYSTEMS NEED TO BE CONSTANTLY ASSESSED AND EVALUATED TO ENSURE
THAT THE ORGANIZATION HAS ASSIGNED WORKERS TASKS AND RESPONSIBILITIES
THAT ASSIST IN ACHIEVING ORGANIZATIONAL OBJECTIVES.
DESIGN OF WORK SYSTEMS
WHAT WORKERS DO
• IN ALLOCATING SPECIFIC TASKS AND JOB RESPONSIBILITIES TO
EMPLOYEES, THOSE WHO ASSIGN RESPONSIBILITIES NEED TO ENSURE
THAT EMPLOYEES :
 ARE NOT OVERHELMED BY THEIR JOBS.
 HAVE SUFFICIENT WORK TO KEEP THEM BOTH PRODUCTIVE AND
MOTIVATED.
• JOB TITLES AND CONTENT SERVE AS AN IMPORTANT BASIS OF
COMPARISON FOR EMPLOYEES WITHIN THE ORGANIZATION RELATIVE TO
STATUS, POWER, AND APPROPRIATENESS OF COMPENSATION.
• VARIOUS STRATEGIES FOR THE DESIGN OF INDIVIDUAL JOBS
JOB SPECIALIZATION
• IN THE EARLY TWENTIETH CENTURY, INDUSTRIAL
ENGINEERING PRESCRIBED WORK SYSTEMS JOBS THAT HAD
VERY NARROW TASK. ASSIGNMENTS, ATTEMPTED TO
PROMOTE EFFICIENCY IN INDUSTRIAL OPERATIONS BY
ALLOWING WORKERS TO SPECIALIZE IN PARTICULAR TASKS
AND GAIN HIGH LEVELS OF COMPETENCE IN THEIR WORK.
• JOBS HAD A LIMITED NUMBER OF TASKS ASSIGNED THAT
REQUIRED LITTLE THOUGHT BUT PRECISE EXECUTION =>
BORING AND MONOTONOUS FOR EMPLOYEES, AND UNABLE
TO CONTRIBUTE TO THE ORGANIZATION IN ANY MEANING
FUL WAY.
• INITIAL EFFORTS TO RELIEVE THIS BOREDOM :
 JOB ENLARGMENT PROVIDES SOME VARIETY BY
INCREASING THE NUMBER OF TASKS, ACTIVITIES, OR
JOBS :
 JOB ROTATION : WORKERS ROTATE ACROSS
DIFFERENT SPECIALIZED POSITION WITHIN THE
ORGANIZATION, WITHOUT GIVING EMPLOYEES
MORE RESPONSIBILITY.
 JOB ENRICHMENT INVOLVES GOING BEYOND
MERELY ADDING TASKS TO EMPLOYEES JOB AND
INCREASING THE AMOUNT OF RESPONSIBILITY
EMPLOYEES HAVE.
WHAT WORKERS NEED
• THE DESIGN OF WORK SYSTEMS ALSO NEEDS TO CONSIDER WHAT WORKERS NEED
AND WANT IN ORDER TO CARRY OUT THEIR JOB RESPONSIBILITIES. EMPLOYERS MUST
CONSIDER A NUMBER OF IMPORTANT UNIVERSAL CONSIDERATIONS IN DESIGNING
WORK SYSTEMS TO ENSURE THAT WORKERS ARE MOTIVATED, PRODUCTIVE, AND
HAPPY.
• EMPLOYEES EXPECT THEIR EMPLOYERS TO UNDERSTAND THEIR NEEDS AND RESPECT
THEM AS INDIVIDUALS. IN ORDER TO PERFORM AT PEAK LEVELS, EMPLOYEES NEED TO
REMAIN FREE FROM BIAS OR PREJUDICE IN HIRING, TREATMENT, PERFORMANCE
MANAGEMENT, COMPENSATION, AND ADVANCEMENT DECISIONS AND PROGRAMS.
• ORGANIZATIONS ALSO NEED TO BE MORE AWARE OF EMPLOYEE NEEDS FOR
WORK/LIFE BALANCE. EMPLOYERS WHO DESIGN WORK SYSTEMS THAT DO NOT
ALLOW EMPLOYEES TO HAVE THE BALANCE THEY DESIRE IN THEIR LIFE ACTIVITIES
WILL FIND WORKERS WHO NOT ONLY ARE LESS COMMITTED TO THE ORGANIZATION
BUT WHO MAY SUFFER FROM BURN OUT AND PERFORM AT LESS THAN OPTIMAL
LEVELS. AN INCREASING NUMBERS OF EMPLOYERS ARE ESTABLISHING STRESS
MANAGEMENT PROGRAMS AS WELL AS PHYSICAL HEALTH AND WELLNESS PROGRAMS
TO ENSURE THAT EMPLOYEES RETAIN AN ESSENTIAL BALANCE AMONG THEIR LIFE
ACTIVITIES.
• ENSURING THAT EMPLOYEES HAVE SOME FORM OF REPRESENTATION, OR
“VOICE”. MORE HIGHLY SKILLED AND TRAINED WORKERS EXPECT TO USE THEIR
TRAINING AND EXPERIENCE TO MAKE A CONTRIBUTION TO THE ORGANIZATION,
AND THEY EXPECT THE ORGANIZATION TO LISTEN TO THEIR CONCERNS, SYSTEMS
FOR EMPLOYEE INPUT ARE NOT ONLY MOTIVATIONAL TO EMPLOYEES, BUT THEY
ALSO ALLOW THE ORGANIZATION TO FULLY UTILIZE ITS EXISTING HUMAN
CAPABILITIES BY ENCOURAGING EMPLOYEES TO GET INVOLVED IN WORK-
RELATED SO EMPLOYEES HAVE SUFFICIENT VOICE TO ALLOW THEM TO
CONTRIBUTE THEIR PERSPECTIVES AND EXPERTISE.
EMPLOYERS NEED TO DESIGN THEIR WORK SYSTEMS TO ENSURE THAT
CONCERNS IN A CONSTRUCTIVE MANNER WITHIN AN ATMOSPHERE OF MUTUAL
RESPECT. BOTH EMPLOYEES AND THE ORGANIZATIONS WIN WHEN THIS IS
ACCOMPLISHED.
• WORKPLACE SAFETY :
THE UNITED STATES HAS ESTABLISHED NUMEROUS GUIDELINES FOR EMPLOYERS,
ADMINISTERED BY THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION
(OSHA), WHICH OVERSEES THE OCCUPATIONAL SAFETY AND HEALTH ACT (IN
INDONESIA : UNDANG-UNDANG KESELAMATAN DAN KESEHATAN KERJA)
 STAFFING
JOB ANALYSIS
• HR PRACTITIONERS REFER TO JOB ANALYSIS AS THE
FOUNDATION FOR ALL HR ACTIVITIES
• JOB :
A GROUPING OF RELATED DUTIES, TASKS, AND BEHAVIORS PERFORMED
BY ONE OR MORE INDIVIDUALS, NAMELY. JOBHOLDERS (Belcourt &
McBey, 2004 : 112)

• JOB ANALYSIS :
THE ANALYSIS OF SUBDIVIDED WORK IN THE ORGANIZATION, BOTH AT
THE LEVEL OF THE INDIVIDUAL JOB AND FOR THE ENTIRE FLOW OF THE
PRODUCTION PROCESS (Belcourt & McBey, 2004 : 112)
 THE PROCEDURES FOR DETERMINING THE DUTIES AND SKILL
REQUIREMENTS OF A JOB AND THE KIND OF PERSON WHO SHOULD
BE HIRED FOR IT (Dessler, Gary, 2011 : 143)
 A SYSTEMATIC INVESTIGATION OF THE TASKS, DUTIES AND
RESPONSIBILITIES OF A JOB AND THE NECESSARY KNOWLEDGE,
SKILLS AND ABILITIES A PERSON NEEDS TO PERFORM THE JOB
ADEQUATELY (Stone, Raymond J, 2008 : 153)
• JOB DESCRIPTION :
A LIST OF A JOB’S DUTIES, RESPONSIBILITIES, REPORTING
RELATIONSHIP, WORKING CONDITIONS, AND SUPERVISORY
RESPONSIBILITIES (Dessler, Gary, 2011 : 143)
 THE WRITTEN OUTCOME (DOCUMENT) PRODUCED BY
THE JOB ANALYSIS PROCESS WHICH EMPHASIZES THE
DUTIES OR TASKS TO BE CARRIED OUT ON THE JOB
(Belcourt & McBey, 2004 : 112)
• JOB SPECIFICATION
 A LIST OF A JOB’S “HUMAN REQUIREMENTS”; THAT
IS, THE REQUISITE EDUCATION, SKILL, PERSONALITY,
AND SO ON (Stone, Raymond J, 2008 : 153)
 THE WRITTEN OUTCOME (DOCUMENT) PRODUCED
BY THE JOB ANALYSIS PROCESS WHICH EMPHASIZES
ON IDENTIFYING THE COMPETENCIES THE
JOBHOLDER MUST POSSESS TO BE A SUCCESSFUL
PERFORMER IN THE SPECIFIED JOB.
 THE COMPETENCIES : KNOWLEDGE – SKILL – ABILITY
– OTHER ATTRIBUTES (INCLUDE WORK EXPERIENCE).
(Belcourt & McBey, 2004 : 113)
PROBLEMS ASSOCIATED WITH JOB ANALYSIS

1. JOB ANALYSIS THAT IS NEITHER UPDATE NOR REVIEWED

• RECENT EXTREMELY RAPID CHANGE IN TECHNOLOGY, MATERIALS, AND
PROCESSES WHICH IMPACTS ON HOW WORK IS BEING PERFORMED
MUST BE INCORPORATED INTO THE AMENDEED JOB DESCRIPTION OR
SPECIFICATION. OBSOLETE JOB DESCRIPTIONS NOT ONLY FAIL TO
PROVIDE JOB INCUMBENTS WITH MEANINGFUL GUIDANCE AS TO
THEIR REQUIRED DUTIES AND TASKS, BUT ALSO RESULT IN AN HR
PLANNING THAT IS ATTEMPTING TO MATCH INDIVIDUALS TO JOBS
BASED ON INFORMATION THAT IS NO LONGER VALID.
• JOB ANALYSIS MUST BE REVIEWED ON A REGULAR BASIS BY
INCUMBENTS, SUPERVISORS, HR STAFF, AND SO ON TO ENSURE THAT
THE WRITTEN JOB REQUIREMENTS REFLECT THE REALITY OF THE
CONTEMPORARY JOB PERFORMANCE.
2. JOB DESCRIPTION OR SPECIFICATION THAT IS TOO VAGUE
IF JOB ANALYSIS IS TO PROVIDE INFORMATION TO ALLOW US
TO SELECT THE INDIVIDUAL WHO BEST MEETS JOB
REQUIREMENTS, WE MUST BE SPECIFIC AS TO WHAT THOSE
EXACT REQUIREMENTS ARE. FOR EXAMPLE, ORGANIZATIONS
OFTEN SPECIFY THAT APPLICANTS MUST HAVE A CERTAIN
NUMBER OF YEARS EXPERIENCE IN A CERTAIN FUNCTIONAL
AREA INSTEAD OF SPECIFYING THE EXACT SKILLS OR
COMPETENCIES THE APPLICANT SHOULD HAVE LEARNED
OVER THAT PERIOD.
TO BE AN EFFECTIVE COMPONENT OF HR PLANNING, THE
JOB ANALYSIS PROCESS MUST PRODUCE DETAILED, SPECIFIC
BAHAVIORAL EXAMPLES OF SUCCESSFUL JOB PERFORMANCE
FOR EACH JOB IN THE WORK PROCESS.
3. CONTAMINATION AND DEFICIENCY
• CONTAMINATION : AN ERROR THAT OCCURS WHEN
UNIMPORTANT OR INVALID BEHAVIORS OR ATTRIBUTES
ARE INCORPORATED INTO A JOB DESCRIPTION OR
SPECIFICATION.
• DEFICIENCY : AN ERROR OF OMISSION WHEN A JOB
DESCRIPTION OR SPECIFICATION FAILS TO INCORPORATE
IMPORTANT ASPECTS OF THE JOB REQUIRED FOR
SUCCESS.
4. TIME AND COSTS OF JOB ANALYSIS
SOME ORGANIZATIONS ARE DETERRED FROM CONDUCTING JOB
ANALYSIS DUE TO THE SIGNIFICANT TIME AND START-UP COSTS
PERCIEVED TO BE ASSOCIATED WITH THE PROCESS, BECAUSE THEY
HAVE NOT CONDUCTED A PROPER COST-BENEFIT ANALYSIS WITH
RESPECT TO THIS DECISION.
THEY SHOULD ALSO CONSIDER THE TIME AND COST SAVINGS THAT
RESULT FROM THE FOLLOWING :
1) BETTER MATCHING OF INDIVIDUAL SKILLS TO ORGANIZATIONAL
REQUIREMENTS
2) INCORPORATION OF THE BENEFITS OF ORGANIZATIONAL LEARNING
WITH RESPECT TO PRODUCT AND PROCESS IMPROVEMENT
3) REDUCED JOB AMBIGUITY AND WASTAGE
4) CLARIFICATION OF OPERATING PROCEDURES AND JOB RELATIONSHIP
5) EXPLICIT DEFINITION OF PERFORMANCE EXPECTATIONS FOR
INDIVIDUALS AND TEAMS
6) FACILITATION OF OTHER HR PROGRAMS.
 THE PROCESS OF JOB ANALYSIS
THE PROCESS OF JOB ANALYSIS INVOLVES FOLLOWING FIVE STEPS TO
MAXIMIZE THE POTENTIAL FOR SUCCESS.
1.DETERMINE THE JOB OR PROCESS TO BE ANALYZED
• ALTHOUGH THE DESIRED OUTCOME OF A JOB ANALYSIS IS TO HAVE A
COMPREHENSIVE RECORD OF ALL ORGANIZATIONAL JOBS AND THEIR
ASSOCIATED DUTIES, SKILL REQUIREMENTS, WORKING CONDITIONS,
AND SO ON, REALITY DICTATES THAT ORGANIZATIONS NORMALLY
SELECT CERTAIN WELL-DEFINED JOBS COMMON THROUGHOUT THE
INDUSTRY THAT CAN BE BENCHMARKED EXTERNALLY.
• SOME FACTORS THAT DETERMINE WHETHER JOB ANALYSIS WILL BE
CONCURRENT (ALL JOBS ANALIZED AT APPROXIMATELY THE SAME
TIME) OR SEQUENTIAL (JOB ANALYSIS CONDUCTED IN DIFFERENT
STAGES OVER TIME) INCLUDE :
1) THE DEGREE TO WHICH THE SELECTED JOB IS CENTRAL OR CRITICAL; THE MORE
CRITICAL OR CENTRAL THE JOB OR PROCESS, THE GREATER THE TENDENCY TO
ANALYZE IT, AND TO DEFER EXAMINATION OF LESS CENTRAL JOBS OR PROCESSES TO A
FUTURE TIME.
2) THE AVAILABILITY OF JOB ANALISTS AND OTHER RESOURCESS; THE NUMBER AND
AVAILABILITY OF JOB ANALISTS, BE THEY EXTERNAL CONSULTANTS OR INTERNAL HR
SPECIALISTS, ARE KEY FACTORS INFLUENCING WHETHER AN ORGANIZATION IS ABLE
TO CONDUCT CONCURRENT JOB ANALYSIS OR IS FORCED TO DO IT SEQUENTIALLY BY
STAGES.
3) THE AVAILIBILITY OF EXTERNAL PERFORMANCE BENCHMARK FOR ORGANIZATIONAL
JOBS.

BENCHMARK : EXTERNAL COMPARATORS FOR ORGANIZATIONAL JOBS AND

PERFORMANCE CRITERIA.
 THE CANADIAN GOVERNMENT’S “NATIONAL OCCUPATIONAL CLASSIFICATION
(N.O.C)” CONTAINS STANDARDIZED JOB DESCRIPTIONS ON APROXIMATELY 25,000
JOBS, FACILITATES EXTERNAL BENCHMARKING FOR JOB ANALISTS.
 THE U.S’S “ DICTIONARY OF OCCUPATIONAL TITLES (D.O.T)” PROVIDES INFORMATION
ON THE MAIN DUTIES AND EMPLOYMENT REQUIREMENTS OF EACH CLASSIFIED JOB.
DETERMINE METHODS AND ANALYZE THE JOB OR PROCESS

• SELECTION CRITERIA FOR JOB ANALYSIS METHODS INCLUDE :

COST, INCLUDES LICENCE FEES FOR COPYRIGHTED QUESTONAIRES, TRAINING, AND
ADMINISTRATION
TIME, INCLUDES THAT SPENT ON SURVEY AND INTERVIEW TRAINING AND
ASSESSMENT, DATA CODING AND ANALYSIS, AND SO ON
FLEXIBILITY OF METHODS, WHETHER THE METHOD IS APPROPRIATE FOR THE
PARTICULAR CIRCUMSTANCES
VALIDITY AND RELIABILITY, RELATES TO WHETHER THE JOB ANALYSIS METHODS
HAVE BEEN TESTED AND FOUND TO BE ACCURATE MEASURES, AND WHETHER THE
RESULTS OF THESE METHODS SHOW A CONSISTENT PATTERN OVER REPEATED
USABE.
ACCEPTANCE, DIRECT OBSERVATION AND VIDEOTAPING OF WORK PERFORMANCE,
MAYBE CONSIDERED INTRUSIVE BY THE WORKFORCE AND, THEREFORE, MAYBE MET
WITH RESISTANCE. OTHER METHODS, SUCH AS QUESTIONAIRES AND INTERVIEWS,
MIGHT BE DEEMED MORE ACCEPTABLE BY THE WORKERS, WHO WOULD THEN
COOPERATE IN PROVIDING INFORMATION TO THE JOB ANALISTS.
• THE COMMON METHODS OF JOB ANALYSIS
 INTERVIEW
A JOB ANALIST MAY INTERVIEW JOB INCUMBENTS, CO-
WORKERS, SUPERVISORS, SUPPLIERS, CLIENTS, AND
SUBORDINATES. IT IS CALLED 360 - DEGREE EVALUATION :
EVALUATION OF ATTRIBUTES AND PERFORMANCE DIMENTIONS
OF JOB BY SETTING FEEDBACK FROM “THE FULL CIRCLE”
AROUND THE JOB.
 OBSERVATION
DIRECT OBSERVATION : ANALISTS OBSERVE THE PRODUCTION
LINE FOR WORKER BEHAVIORS AND THE SKILLS REQUIRED FOR
THE JOB SUCCESS. EXAMPLE : TIME- AND- MOTION STUDY.
INDIRECT OBSERVATION CAN INCORPORATE A VARIETY OF
MEANS, SUCH AS A VIDEOTAPED RECORDING OF THE JOB
BEING PERFORMED.
• QUESTONAIRES
• THE STANDARDIZED QUESTIONAIRES MORE FREQUENTLY
USED :
 THE POSITION DESCRIPTION QUESTIONAIRE
 THE FUNCTIONAL JOB ANALYSIS
 THE JOB DIAGNOSTIC SURVEY
 THE DIMENSIONS OF EXECUTIVE POSITIONS
 THE POSITION ANALYSIS QUESTIONAIRE
THESE SURVEY INSTRUMENTS ARE COMPLETED BY
JOBHOLDERS, THEIR SUPERVISORS, AND PEOPLE WHO
WORK IN OTHER JOB THAT ARE RELATED TO THE SPECIFIC
JOB BEING INVESTIGATED.
• THE COMMON ELEMENTS ARE QUESTIONS CONCERNING :
 EDUCATION, TRAINING, AND SKILL REQUIREMENTS TO BE
SUCCESSFUL IN THE JOB
 RESPONSIBILITY OR ACCOUNTABILITY (WITH REGARD TO
BUDGETS, SPECIFIC DUTIES AND TASKS PERFORMED,
NUMBER AND TYPE OF PEOPLE SUPERVISED, ETC)
 EFFORT- THAT IS, THE COGNITIVE AND PHYSICAL DEMANDS
PLACED ON THE INDIVIDUAL.
 WORKING CONDITIONS, FOR EXAMPLE WETHER THE WORK
IS DONE BY AN INDIVIDUAL OR TEAM, THE EQUIPMENT OR
MATERIALS USED, THE JOB CONTEXT OR THE
ENVIRONMENTAL CONDITIONS OF WORK, THE WORK SHIFTS
OR HOURS OF WORK, THE POTENTIAL HEALTH HAZARD, AND
SO ON.
• JOURNALS AND DIARIES
JOBHOLDERS ARE ASKED TO MAINTAIN A WRITTEN RECORD OF
THEIR JOB ACTIVITIES, AND ASSOCIATED TIME EXPENDITURES,
FOR A PRESET PERIOD THAT TYPICALLY RANGES FROM A
COMPLETE WORK CYCLE OR TYPICAL WEEK TO UP TO A MONTH

OUTPUT AND PRODUCTION ANALYSIS

MACHINE- GENERATED OUTPUT REPORTS, AS WELL AS
PRODUCTION REPORTING PROCEDURES, CAN OBTAIN ABOUT
THE JOB AND ITS NORMAL AND PEAK LEVEL OF PRODUCTION,
WHICH ARE USEFUL IN DETERMINING APPROPRIATE
PERFORMANCE
STANDARDS FOR OUTPUT.
CURRENT JOB DESCRIPTIONS AND SPECIFICATIONS

A USEFUL STARTING POINT, IF A PREVIOUS JOB ANALYSIS HAS

BEEN PERFORMED, IS AN EXAMINATION OF THE EXISTING JOB
DESCRIPTIONS AND SPECIFICATIONS. IT WILL SHOW HOW THE
JOB IN QUESTION HAS EVOLVED AND WETHER ITS COMPONENT
DUTIES, TASKS, AND EMPLOYEE SPECIFICATIONS, HAVE
INCREASED OR DIMINISHED OVER TIME.

THERE IS NO ONE BEST WAY TO ANALYZE A JOB, SO MOST

CONTEMPORARY JOB ANALYSIS EMPLOY A COMBINATION OF
THE AFOREMENTONED METHODS.
3. EXAMINE THE RECORDED DATA ON THE JOB OR PROCESS

• HAVING SELECTED THE MOST APPROPRIATE METHODS TO

ANALYZE THE JOB, JOB ANALISTS :
 RECORD THE KNOWLEDGE, SKILLS, AND ABLITIES ;
 JOB RELATED BEHAVIOURS, DUTIES, TASKS,
RESPONSIBILITIES ;
 WORKING CONDITIONS OF THE JOB.
• THE NEXT STEP IS TO EXAMINE THESE DATAS FROM A
VARIETY OF PERSPECTIVES TO GET A DETAILED PROFILE
OF THE CURRENT JOB. SOME OF THE QUESTIONS
INVOLVED IN THE EXAMINATION ARE AS FOLLOWS :
a. WHAT IS THE PURPOSE OF THIS JOB ? WHY DOES IT EXIST ?
b. WHERE IS THE JOB PHYSICALLY PERFORMED ? ARE THERE
COMPELLING REASON WHY THE JOB MUST BE PERFORMED THERE ?
c. WHAT IS THE SEQUENCE OF BEHAVIOURS REQUIRED FOR
SUCCESSFUL JOB PERFORMANCE ? ARE THERE WAYS TO MODIFY THE
METHODS AND PROCESS TO IMPROVE THE JOB, BOTH QUALITATIVELY
(e.g. WORKER AND CLIENT SATISFACTION, WORKER MOTIVATION)
AND QUANTITATIVELY (e.g. OUTPUT) ?
d. WHO PERFORM THE JOB ? WHAT CONSTITUTES THE EMPLOYEE
SPECIFICATIONS (e.g. EDUCATION, TRAINING, SKILLS, ETC). REQUIRED
FOR JOB SUCCESS ? ARE THESE SPECIFICATIONS OPTIMAL, OR THEY
THE MINIMUM STANDARD REQUIRED FOR SUCCESS ON THE JOB ?
e. WHAT ARE THE MEANS OF PERFORMING THE JOB ? ARE THE
MATERIALS, MACHINES, GROUP PROCESSESS, AND OPERATING
PROCEDURES CONGRUENT WITH EFFECTIVE PERFORMANCE OF THE
JOB ?
4. DEFINE AND FORMULATE NEW METHODS AND
PERFORMANCE STANDARDS FOR THE JOB OR PROCESS

• TO THIS POINT IN THE PROCESS, THE ANALISTS HAVE :

a. EXAMINED EXISTING DESCRIPTIONS AND SPECIFICATIONS FOR
THE JOB (IF PREVIOUS ANALYSES HAVE BEEN CONDUCTED)
b. ANALIZED DATA ON THE JOB AS IT IS PRESENTLY PERFORMED BY
THE JOBHOLDER(S)
c. COMPARED (a) AND (b) TO THE JOB CALSSIFICATION IN THE
CURRENT PRACTISES IN COMPETITIVE FIRMS. AT THIS STAGE,
THE JOB ANALISTS ATTEMPT TO IMPROVE ON CURRENT
PRACTICES BY RECOMMENDING NEW METHODS AND
PERFORMANCE STANDARDS FOR THE JOB.
d. TO DO THIS, ANALISTS MUST PRESENT THE FOLLOWING
QUESTIONS TO THE INCOMBENTS AND MANAGERS :
 a) WOULD YOU RECOMMEND ANY CHANGES TO MATERIALS,
MACHINERY, BEHAVIOURAL SEQUENCING, TRAINING, OR
PROCEDURES TO IMPROVE PERFORMANCE ON THE JOB ?
b) ARE THERE ANY DUTIES OR TASKS THAT SHOULD BE ADDED TO OR
DELETED FROM THE JOB ?
c) WOULD YOU RECOMMEND ANY CHANGES IN THE SPECIFICATIONS
(e.g. KNOWLEDGE, SKILLS, OR ABILITIES) FOR INDIVIDUALS
SELECTED TO PERFORM THIS JOB ?
d) WHAT CHANGES IN WORKING CONDITIONS WOULD YOU
RECOMMEND TO IMPROVE PERFORMANCE ON THIS JOB ?
e) WHAT IS YOUR RATIONALE FOR THESE RECOMMENDED CHANGES ?

• HAVING COLLECTIVE WISDOM OF ALL RELEVANT PARTIES REGARDING THE

PERFORMANCE OF THE JOB UNDER EXAMINATION, THE HR. SPECIALISTS OR
JOB ANALISTS WRITE THE NEW DESCRIPTION OR SPECIFICATION.
 BOTH JOB DESCRIPTIONS AND SPECIFICATIONS CONTAIN THE
FOLLOWINGS INFORMATION :
a) THE JOB TITLE
b) THE JOB CODE OR CLASSIFICATION NUMBER
c) THE COMPENSATION CATEGORY
d) THE DEPARTMENT OR SUB-UNIT
e) THE SUPERVISING JOB TITLE (THE TITLE OF THE PERSON TO
WHOM ONE REPORTS)
f) THE DATE OF THE APPROVED DESCRIPTION OR SPECIFICATION
g) THE NAME OF THE JOB ANALIST.
5. MAINTAIN NEW METHODS AND PERFORMANCE
STANDARDS FOR THE JOB PROCESS
FOUR MAIN METHODS TO HELP ENSURE USAGE OF THE NEW TECHNIQUES AND TO PREVENT RELAPSES
TO THE OLD, COMFORTABLE WAYS OF PERFORMING ON THE JOB :
1) COMMUNICATION AND TRAINING
THE AFFECTED JOBHOLDERS MUST SOON BE GIVEN A COPY OF THE REVISED JOB DESCRIPTION OR
SPECIFICATION. THE PROCESS OF FORMALLY COMMUNICATING THE JOB CHANGES MUST ALSO
PROVIDE SUFFICIENT TIME FOR QUESTIONS AND ANSWERS TO ENSURE WORKERS ARE CLEAR ON
THE NEW EXPECTATIONS FOR THEIR JOB PERFORMANCE.
TRAINING AND DEVELOPMENT PROGRAMS MAY HAVE TO BE INSTITUTED IF THERE ARE SIGNIFICANT
CHANGES IN METHODS, MATERIALS, OR THE SEQUENCING OF BEHAVIOURS REQUIRED ON THE JOB.

2) SUPERVISORY REINFORCEMENT
AFTER BEING FORMALLY NOTIFIED OF THE CHANGES, SUPERVISORS MUST SPEND CONSIDERABLE
TIME ENSURING THAT WORKERS ARE, IN FACT, BEHAVING IN ACCORDANCE WITH THE NEW JOB
PROCEDURS.
COACHING, MODELLING THE DESIRED BEHAVIOURS, AND REINFORCING SUCCESSFUL
PERFORMANCE OF THE NEW METHODS ARE ALL TECHNIQUES SUPERVISORS CAN EMPLOY TO
PREVENT RELAPSES TO THE OUTPUTED, YET HABITUAL, METHODS OF PERFORMING THE JOB.
3)EMPLOYEE FEEDBACK
FEEDBACK IS CRITICAL TO THE SUCCESS OF THE JOB ANALYSIS PROCESS. EMPLOYEES
MUST BE GIVEN THE FREEDOM TO EXPRESS SUGGESTED IMPROVEMENTS OR
CONCERNS WITH RESPECT TO METHODS, PERFORMANCE STANDARDS, IF WE EXPECT
THEM TO BECOME MOTIVATED AND COMMITTED TO THEIR JOBS.
BEAR IN MIND THAT JOB ANALYSIS IS A NEVER- ENDING PROCESS OF DATA GATHERING,
CODING, INTERPRETING, AND REFINING JOB METHODS AND STANDARDS, DUE TO
CHANGES IN TECHNOLOGY, COMPETITIVE PRACTICES, ECONOMIC CIRCUMSTANCES,
AND SO ON.

4)REWARD SYSTEMS
A COMMON DOWN FALL OF WORK REDESIGN AND JOB ANALYSIS EFFORTS IS THAT
ALTHOUGH THE JOB METHODS AND STANDARDS HAVE CHANGED, THE
ORGANIZATIONAL REWARD SYSTEM HAS NOT BEEN ALTERED, AND IT REINFORCES THE
UNDESIRABLE OLD JOB BEHAVIOUR.
FOR EXAMPLE, IF THE REVISED WORK PROCESS IS TEAM BASED, BUT THE
COMPENSATION SYSTEM CONFLICTS WITH JOB DESCRIPTIONS BY BEING
DISPROPORTIONALLY WHEIGHTED TOWARD EVALUATION OF INDIVIDUAL
PERFORMANCE, WE CAN EXPECT TO SEE UNPLANNED, DYSFUNCTIONAL BEHAVIOURS
AND CONDUCT FROM MEMBERS OF THE TEAM.
SPECIFIC JOB ANALYSIS TECHNIQUES
FIVE WELLKNOWN AND WIDELY UTILIZED TECHNIQUES :
1.CRITICAL INCIDENT TECHNIQUE
A QUALITATIVE PROCESS OF JOB ABALYSIS THAT PRODUCES BEHAVIOURAL STATEMENTS ALONG A RANGE
FROM SUPERIOR TO INEFFECTIVE PERFORMANCE FOR ASPECIFIC JOB
2.BEHAVIOURALLY ANCHORED RATING SCALES (BARS)
A JOB IS DEVIDED INTO A NUMBER OF KEY DIMENSIONS, AND EACH DIMENSIONS CONTAINS A RANGE OF
STATEMENTS OF JOB BEHAVIOUR “ANCHORED” TO A NUMERICAL SCALE
3.POSITION ANALYSIS QUESTIONAIRE (PAQ)
A STRUCTURED JOB ANALYSIS CHECKLIST THAT INCLUDE 194 ITEM OF ELEMENTS USED TO RATE A JOB;
INCORPORATED INTO SIX DIMENSIONS :
a) INFORMATION INPUT : HOW AND WHERE THE WORKER OBTAINS NECESSARY INFORMATION FOR JOB
FUNCTIONING.
b) MENTAL PROCESSES : THE TYPES OF PLANNING, REASONING, AND DECISION MAKING PROCESSES
REQUIRED BY THE JOB.
c) WORK INPUT : THE SPECIFIC ITEMS PRODUCE BY THE WORKERS AND THE TOOLS HE OR SHE EMPLOYS
TO PRODUCE THEM
d) RELATIONSHIP WITH OTHER WORKERS : IMPORTANT INTERPERSONAL CONTACTS FOR THE
JOBHOLDERS.
e) JOB CONTEXT AND WORK SATISFACTION : THE PHYSICAL AND SOCIAL WORKING ENVIRONMENTS.
f) OTHER JOB CHARACTERISTICS : ELEMENTS OF THE JOB THAT DO NOT FALL INTO THE OTHER FIVE
DIMENSIONS.
4. FUNCTIONAL JOB ANALYSIS (FJA)
ANALYSIS ANY JOB USING THREE ESSENTIAL ELEMENTS :
1) PEOPLE : IMPORTANT INTERPERSONAL RELATIONSHIPS ON THE JOB
2) DATA : OBTAINING, USING, AND TRANSFORMING DATA IN AIDS OF JOB
PERFORMANCE
3) THINGS : PHYSICAL MACHINERY, RESOURCES, AND ENVIRONMENTAL EACH OF
THESE THREE ELEMENTS IS THEN RATED BY LEVEL OF COMPLEXITY AND
IMPORTANCE.
5. THE WAY SYSTEM
USES THREE KEY FACTORS TO ANALYZE JOBS :
1) KNOW- HOW : THE SPECIFIC KNOWLEDGE AND SKILLS REQUIRED TO
PERFORM THE JOB
2) PROBLEM - SOLVING : THE DECISIONS AND PROBLEMS THAT MUST BE
SUCCESSFULLY HANDLED ON THE JOB
3) ACCOUNTABILITY : THE JOBHOLDER’S RESPONSIBILITIES FOR CRITICAL TASK
COMPLETION AND FOR ORGANIZATIONAL RESOURCES, BUDGETS,
SUPERVISION OF PEOPLE, ETC.
COMPETENCY - BASED APPROACH
• IN TODAY’S BUSINESS ENVIRONMENT, CHARACTERIZED BY INCREASED
GLOBALIZATION, EXTREMELY TURBULENT ENVIRONMENT, AND FIERCE
COMPETITION, TRADITIONAL JOB ANALYSIS MAYBE UNABLE TO KEEP UP WITH THE
RAPID OF CHANGE FACED BY MOST ORGANIZATIONS.
• MANY ORGANIZATIONS HAVE REDUCED THEIR COMPLEMENT OF FULL-TIME
WORKERS BY “DOWN SIZING” THERE BY PRODUCING FLATTER ORGANIZATIONAL
STRUCTURES WITH FEWER WORKERS AND GREATER RELIANCE ON SELF- MANAGED
TEAMS IN ACHIEVING DESIRED ORGANIZATIONAL OUTCOMES.
• THE INCREASED DESIRE FOR FLEXIBILITY AND CROSS- TRAINING OF EMPLOYEES HAS
LED TO A TREND OF EXAMINING
COMPETENCY MODELLING IN ORDER TO IDENTIFY GENERAL WORKER
REQUIREMENTS ASSOCIATED WITH A BROAD RANGE OR CATEGORY OF JOBS = >
COMPETENCY BASED APPROACH OF JOB ANALYSIS TO DEVELOP SUCCESSFUL
PROFESSIONAL PERFORMANCE FOR DENTISTS, ENGINEERS, NURSES, PHYSICIANS,
POLICE OFFICERS ETC.
COMPETENCY : ANY KNOWLEDGE, SKILL, TRAIT, MOTIVE, ATTITUDE, VALUE, OR
OTHER PERSONAL CHARACTERISTIC THAT IS ESSENTIAL TO PERFORM THE JOB AND
THAT DIFFERENTIATES SUPERIOR FROM SOLID PERFORMANCE.
 RECRUITING
• STAFFING, THE PROCESS OF RECRUITING APPLICANTS AND
SELECTING PROSPECTIVE EMPLOYEES, REMAINS A KEY STRATEGIC
AREA FOR HUMAN RESOURCE MANAGEMENT. THE SPECIFIC
STRATEGIES USED AND DECISIONS MADE IN THE STAFFING
PROCESS WILL DIRECTLY IMPACT AN ORGANIZATION’S SUCCESS
OR LACK THEREOF.
• TEMPORARY VERSUS PERMANENT EMPLOYEES
WHEN AN ORGANIZATION NEEDS TO INCREASE ITS HEADCOUNT,
THE FIRST STRATEGIC CHOICE IS WETHER TO HIRE TEMPORARY
OR PERMANENT EMPLOYEES. TO DO THIS, THE ORGANIZATION
MUST ACCURATELY FORECAST HOW LONG IT EXPECTS THE
EMPLOYEE SHORTAGE TO LAST.
TEMPORARY EMPLOYEES

o USUALLY COST MORE PER HOUR TO EMPLOY THAN PERMANENT WORKER

o NOT PAID WHEN THERE IS NO WORK FOR THEM TO DO
o ARE NOT PROVIDED BENEFITS
o CANNOT FILE CLAIMS FOR UNEMPLOYMENT COMPENSATION WHEN
THEIR EMPLOYMENT ENDS.
o PROVIDE FLEXIBILITY FOR EMPLOYERS BECAUSE PAYROLL CAN BE QUICKLY
AND EASILY CONTRACTED DURING DOWNTURNS WITHOUT HAVING TO
RESULT TO LAYOFF.
o AN ORGANIZATION CAN SUBCONTRACT WORK TO AN OUTSIDE VENDOR,
WHICH USUALLY DONE ON A PROJECT BASIS.
IN-HOUSE TEMPORARY EMPLOYEES

LARGER ORGANIZATIONS CAN ALSO MORE PERMANENT

EMPLOYEES FROM DEPARTMENT TO DEPARTMENT AS NEEDS
DICTATE, THIS PROMOTES EFFICIENCY THROUGH LOWER
COSTS AND FLEXIBLE UTILIZATION OF EMPLOYEES.
o HAVE MORE PERMANENT STATUS, INCLUDING BENEFITS.
o ARE GENERALLY MORE COMMITTED TO THE ORGANIZATION.
o KNOW THE INSIDE WORKINGS OF THE ORGANIZATION
o CAN BE EXTREMELY USEFUL WHEN REGULAR EMPLOYEES
TAKE EXTENDED VACATION OR SICK LEAVES.
o EMPLOYEES HAVE MORE VARIETY IN THEIR WORK
ASSIGNMENT.
INTERNAL VERSUS EXTERNAL RECRUITING

RECRUITING FROM THE CURRENT EMPLOYEE POOL (INTERNAL

RECRUITING) CAN BENEFIT THE ORGANIZATION IN A NUMBER
OF WAYS :
o THE ORGANIZATION ALREADY HAS PERFORMANCE DATA ON
EMPLOYEES
o PROMOTION FROM WITHIN MOTIVATES EMPLOYEES
o TRAINING AND SOCIALIZATION TIME ARE REDUCED.
DISADVANTAGES :
o CAN BECOME VERY POLITICAL AND COMPETITIVE =>
DYSFUNCTIONAL CONFLICT MAY RESULT, AND COLLEGIALITY
AND INTERPERSONAL RELATIONSHIP CAN BE STRAINED.
o BETTER QUALIFIED THAN THE CANDIDATE SELECTED.
o RECRUITMENT => ENCOURAGE MAINTAINING THE
STATUSQUO
o EXCESSIVE INTERNAL RECRUITMENT CAN CAUSE
INEFFICIENCY BY CREATING MULTIPLE VACANCIES.
EXTERNAL RECRUITING ALSO HAS ADVANTAGES AND DISADVANTAGES.

ADVANTAGES
o FACILITIES CHANGE AND TENDS TO BE MORE USEFUL FOR ORGANIZATIONS WITH
VOLATILE EXTERNAL ENVIRONMENTS.
o ALLOW AN ORGANIZATION TO EXPAND ITS KNOWLEDGE BASE BEYOND THAT OF ITS
EXISTING EMPLOYEES AND BRING IN NEW IDEAS AND VIEWPOINT.

DISADVANTAGES
o CAN BE EXPENSIVE AND TIME-CONSUMING; EMPLOYEE FROM OUTSIDE THE
ORGANIZATION NEED A LONGER SOCIALIZATION PERIOD TO KNOW THE
ORGANIZATION, ITS PRODUCTS OR SERVICES, COWORKERS, AND CUSTOMER.
o EXTERNAL RECRUITS ARE UNKNOWN ENTITIES IN THAT THE ORGANIZATION HAS NO
EXPERIENCE WORKING WITH THEM.
o EXTERNAL RECRUITING CAN HAVE DETRIMENTAL EFFECTS ON THE MORALE OF
THOSE EMPLOYEES WHO HAVE APPLIED FOR THE JOB INTERNALLY BUT HAVE NOT
BEEN SELECTED.
WHEN AND HOW EXTENSIVELY TO RECRUIT

EFFECTIVE PLANNING AND STRATEGIZING ARE ESSENTIAL TO THE SUCCESS OF

THE RECRUITING PROCESS. AN ORGANIZATION NEEDS TO KNOW THAT IT HAS
THE RIGHT EMPLOYEES WITH THE RIGHT SKILLS IN THE RIGHT PLACES AT THE
RIGHT TIME. THIS INVOLVES DETERMINING :
1. HOW LARGE AN APPLICANT POOL IS NEEDED
2. WHEN RECRUITING EFFORTS SHOULD BEGIN.
BOTH OF THESE QUESTIONS CAN BE ANSWERED BY REVIEWING DATA FROM
PAST RECRUITING EFFORTS.
 SELECTION
• ONCE A SUFFICIENT POOL OF APPLICANTS HAS BEEN RECRUITED, CRITICAL DECISIONS NEED
TO BE MADE REGARDING APPLICANT SCREENING. SELECTION DECISIONS CAN AND DO HAVE
SIGNIFICANT ECONOMIC AND STRATEGIC CONSEQUENCES FOR ORGANIZATIONS, AND THESE
DECISIONS NEED TO BE MADE WITH GREAT CARE ; THE ORGANIZATION NEEDS TO
DETERMINING IF THE SELECTION METHODS BEING EMPLOYED ARE BOTH RELIABLE AND
VALID.
• RELIABILITY REFERS TO THE CONSISTENCY OF THE MEASUREMENT BEING TAKEN; THE
APPLICATION OF ANY SCREENING CRITERIA SHOULD ELICIT THE SAME RESULTS IN REPEAT
TRIAL, ACROSS TIME AND ACROSS EVALUATORS.
LOW RELIABILITY IS OFTEN THE RESULT OF ONE OF TWO TYPES OF ERROR IN ASSESSMENT :
o DEFICIENCY ERROR : OCCURS WHEN ONE IMPORTANT CRITERION FOR ASSESSMENT IS
NOT INCLUDED IN THE MEASURE. FOR EXAMPLE, IF THE TEST FOR AN APPLICANT FOR AN
EDITOR’S POSITION DID NOT ATTEMP TO MEASURE THE APPLICANT’S WRITING ABILITY.
o CONTAMINATION ERROR : CAUSED BY UNWANTED INFLUENCES THAT AFFECT THE
ASSESSMENT.
FOR EXAMPLE : A TEST MEASURES KNOWLEDGE, SKILLS, OR ABILITIES THAT ARE NOT
ESSENTIAL FOR THE JOB AND THE EVALUATION OF THESE NONCRITICAL FACTORS IMPACTS
THE RATING FOR THE MORE IMPORTANT DIMENSION.
• VALIDITY REFERS TO WHETHER WHAT IS BEING ASSESSED RELATES OR
CORRESPONDS TO ACTUAL PERFORMANCE ON THE JOB, IT EXAMINES
WHETHER THE SKILLS, ABILITIES, AND KNOWLEDGE BEING MEASURED
MAKE A DIFFERENCE IN PERFORMANCE.
TWO TYPES OF VALIDITY :
 CONTENT VALIDITY ILLUSTRATES THAT THE MEASURE OR CRITERION IS
REPRESENTATIVE OF THE ACTUAL JOB CONTENT AND/OR THE DESIRED
KNOWLEDGE THAT THE EMPLOYEE SHOULD HAVE TO PERFORM THE
JOB.
 EMPIRICAL/CRITERION-RELATED VALIDITY. THIS MEASURE
DEMONSTRATES THE RELATIONSHIP BETWEEN CERTAIN SCREENING
CRITERIA AND JOB PERFORMANCE. IF INDIVIDUALS WHO OBTAIN
HIGHER SCORES OR EVALUATIONS ON THESE SCREENING CRITERIA
ALSO TURN OUT TO BE HIGH PERFORMERS ON THE JOB, THEN THIS
TYPE OF VALIDITY IS ESTABLISHED.
SCREENING CRITERIA MUST BE RELIABLE AND VALID.
CRITERIA CANNOT BE VALID THAT ARE NOT ALREADY RELIABLE;
CONVERSELY, CRITERIA CAN BE RELIABLE WITHOUT BEING VALID.
• SELECTION PROCESS : INTERVIEWING – TESTING – REFERENCES
INTERVIEWING
EMPLOYERS NEED TO DETERMINE :
• WHO SOULD BE INVOLVED IN INTERVIEWING APPLICANTS :
‒ IMMEDIATE SUPERVISORS, PEERS, AND/OR SUBORDINATES
• WHETHER INTERVIEWS WILL BE CONDUCTED IN INDIVIDUALS OR GROUP FORMAT
INTERVIEWERS COMMONLY MAKE INTERPRETATION ERRORS THAT SHOULD BE
AVOIDED :
‒CONTRAST ERROR : THE CANDIDATES ARE COMPARED TO EACH OTHER DURING THE
INTERVIEW PROCESS INSTEAD OF THE ABSOLUTE STANDARDS AND REQUIREMENTS
OF THE JOB
‒FIRST IMPRESSION ERROR : THE INTERVIEWER IMMEDIATELY MAKES A POSITIVE OR
NEGATIVE ASSESSMENT OF THE CANDIDATES
‒HALO ERROR : A SINGLE CHARACTERISTIC, POSITIVE OR NEGATIVE, OUTWEIGHTS ALL
OTHER DIMENSIONS
‒BIASES THAT ARE BASED ON THE INTERVIEWEE’S RACE, GENDER, RELIGION, AGE,
ETHNICITY, SEXUAL ORIENTATION, OR PHYSICAL CONDITION RATHER THAN FACTORS
THAT RELATE TO JOB PERFORMANCE.
• TECHNIQUES OF INTERVIEW :
‒ STRUCTURED INTERVIEWS FOLLOW A SET PROTOCOL : ALL INTERVIEWEES ARE
ASKED THE SAME QUESTIONS AND ARE GIVEN THE SAME OPPORTUNITIES TO
RESPOND ; THERE IS STANDARDIZATION IN THAT IT BECOMES EASIER TO
COMPARE APPLICANT RESPONSES TO IDENTICAL QUESTIONS, BUT PROVIDES
LIMITED OPPORTUNITY TO ADAPT THE INTERVIEW PROCESS TO ANY UNIQUE
CIRCUMSTANCES SURROUNDING ANY APPLICANT.
‒ UNSTRUCTURED INTERVIEW IS TOTALLY SPONTANEOUS AND ONE IN WHICH
QUESTIONS ARE NOT PLANNED IN ADVANCE. THE TOPICS OF DISCUSSION CAN
VERY DRAMATICALLY FROM ONE CANDIDATE TO ANOTHER. IT ALLOWS
INTERVIEWERS TO GAIN A GREATER SENSE OF THE APPLICANT AS AN
INDIVIDUAL, BUT OFTEN MAKES COMPARISON AMONG DIFFERENT
CANDIDATES DIFFICULT.
‒ SEMI STRUCTURED INTERVIEW WOULD FALL SOMEWHERE BETWEEN THESE
TWO EXTREMES. THE INTERVIEWER ASKS EACH CANDIDATE A SET OF
STANDARD QUESTIONS. HOWEVER, THE INTERVIEWER CAN DETERMINE
EXACTLY WHICH QUESTIONS EACH CANDIDATE IS ASKED AND CAN BE FLEXIBLE
AND PROBE FOR SPECIFICS WHEN ANSWERS ARE PROVIDED.
TESTING
• THE NEEDS OF THE ORGANIZATION AND JOB STRUCTURE/ JOB REQUIREMENT WILL
DETERMINE WHETHER ANY OR ALL OF THE FOLLOWING SHOULD BE ASSESSED :
TECHNICAL SKILL, INTERPERSONAL SKILL, PERSONALITY TRAITS, PROBLEM – SOLVING
ABILITIES, OR ANY OTHER JOB RELATED PERFORMANCE INDICATORS.
• TRADITIONALLY, TESTING HAS BEEN CONDUCTED AFTER THE INTERVIEWING AND
SCREENING PROCESS, BECAUSE OF THE EXPENSE OF TESTING AND TIME REQUIRED TO
SCORE AND EVALUATE TEST RESULT. HOWEVER, SOME ORGANIZATIONS ARE NOW
TESTING EARLIER IN THE SELECTION PROCESS BECAUSE COSTS INVOLVED WITH
INTERVIEWING OFTEN EXEED THE COSTS OF TESTING.
• TYPES OF TESTS :
‒ WORK SAMPLE TESTS INVOLVE GIVING THE APPLICANT A REPRESENTATIVE SAMPLE OF
WORK THAT WOULD BE PART OF THE JOB AND ASKING THE INDIVIDUAL TO COMPLETE
IT.
‒ TRAINABLE TESTS MEASURE AN APPLICANT’S APTITUDE AND ABILITY TO UNDERSTAND
CRITICAL COMPONENTS OF THE JOB THAT THE COMPANY MAY BE WILLING TO TEACH
ONCE THE EMPLOYEE IS HIRED
‒ BOTH TESTS CAN PROVIDE CANDIDATES WITH REALISTIC JOB PREVIEWS, TO MAKE
APPLICANTS AWARE OF BOTH POSITIVE AND NEGATIVE ASPECTS OF THE JOB.
‒ PERSONALITY TESTING OFTEN CENTERS AROUND WHAT HAVE BEEN
CALLED “THE BIG FIVE” PERSONALITY DIMENSIONS :

‒ PHYSICAL TESTING CAN BE DONE IF THERE ARE SPECIFIC, CRITICAL

PHYSICAL REQUIREMENTS FOR JOB PERFORMANCE
‒ DRUG TESTING
REFERENCES
• REFERENCE – CHECKING IS USUALLY PART OF THE SELECTION PROCESS;
HOWEVER, MOST PROSPECTIVE EMPLOYERS DO LITTLE MORE THAN WASTE
VALUABLE TIME DURING THIS PROCESS. GENERALLY, EMPLOYERS CONTACT
INDIVIDUALS WHOSE NAMES HAVE BEEN PROVIDED BY THE APPLICANT,
DESPITE THE FACT THAT COMMON SENSE DICTATES THAT AN APPLICANT
WOULD NOT SUBMIT A REFERENCE WHO WOULD PROFIDE A NEGATIVE
RECOMMENDATION. EMPLOYERS CAN AND SHOULD CALL INDIVIDUALS OTHER
THAN THOSE NAMED BY THE APPLICANT.
• REFERENCE – CHECKING WAS OFTEN DONE AFTER THE INTERVIEWING
PROCESS AND USUALLY AS THE FINAL STEP IN THE SELECTION DECISION.
• ONE POTENTIAL LIMITATION WITH REFERENCE – CHECKING IS THAT MANY
PAST EMPLOYERS WILL NOT PROVIDE ANY INFORMATION AT ALL; THEY MAY
DO NOTHING MORE THAN VERIFY THE DATES OF EMPLOYMENT, POSITION
HELD, AND/OR SALARY LEVEL. INCREASING LIABILITY FOR LIBEL, SLANDER, AND
DEFAMATION OF PAST EMPLOYEES HAS CAUSED MORE ORGANIZATIONS TO
ADOPT A POLICY OF NOT COMMENTING ON PAST EMPLOYEE’S EMPLOYMENT
HISTORY.
 TRAINING AND DEVELOPMENT
• IF AN ORGANIZATION CONSIDERS ITS EMPLOYEES TO BE HUMAN ASSETS,
TRAINING AND DEVELOPMENT REPRESENT AN ONGOING INVESTMENT IN THESE
ASSETS AND ONE OF THE MOST SIGNIFICANT INVESTMENT AN ORGANIZATION
CAN MAKE.
• HUMAN RESOURCE DEVELOPMENT INCLUDES: TRAINING AND DEVELOPMENT,
CAREER PLANNING AND PERFORMANCE APPRAISAL, WHICH FOCUSES ON THE
ACQUISITION OF THE REQUIRED ATTITUDES, SKILLS, AND KNOWLEDGE TO
FACILITATE THE ACHIEVEMENT OF EMPLOYEE CAREER GOALS AND
ORGANZATIONAL STRATEGIC BUSINESS OBJECTIVES (Stone, RJ. 2008 : P.349)
• THE STRATEGIC PURPOSE OF HUMAN RESOURCE DEVELOPMENT: THE
INTEGRATION OF ALL LEARNING AND DEVELOPMENT ACTIVITIES FOR BOTH
ORGANIZATIONAL AND EMPLOYEE BENEFIT.
• TRAINING INVOLVES EMPLOYEES ACQUIRING KNOWLEDGE AND LEARNING SKILLS
THAT THEY WILL BE ABLE TO USE IMMEDIATELY ; SHORT – TERM FORMAL AND
SEMI – FORMAL METHODS OF TRANSFORMING BASIC KNOWLEDGE AND SKILLS
TO EMPLOYEES.
LEARNING IMPLIES ONGOING DEVELOPMENT AND CONTINUOUSLY ADDING
TO EMPLOYEES’S SKILLS AND KNOWLEDGE TO MEET THE CHALLENGES THE
ORGANIZATION FACES FROM ITS EXTERNAL ENVIRONMENT.
A FOCUS ON LEARNING, AS OPPOSED TO TRAINING, EMPHASIZES RESULTS
RATHER THAN PROCESS, MAKING SUCH AN APPROACH MORE PALATABLE TO
SENIOR EXECUTIVES.
ANY KIND OF EMPLOYEE LEARNING THAT IS NOT REINFORCED BY THE
ORGANIZATION’S REWARD SYSTEM HAS LITTLE CHANCE OF IMPACTING
EMPLOYEE BEHAVIOR AND PERFORMANCE.
EMPLOYEE DEVELOPMENT / EDUCATION INVOLVES LEARNING THAT WILL
AID THE ORGANIZATION AND EMPLOYEE LATER IN THE EMPLOYEE’S CAREER.
ITS ACTIVITIES DESIGNED TO IMPROVE THE KNOWLEDGE, SKILLS AND
MENTAL AND PHYSICAL ABILITIES OF INDIVIDUAL FOR LIFE.
• EMPLOYEE TRAINING AND DEVELOPMENT IS INCREASINGLY BECOMING A MAJOR
STRATEGIC ISSUE FOR ORGANIZATION FOR SEVERAL REASONS :
1. RAPID CHANGES IN TECHNOLOGY CONTINUE TO CAUSE INCREASING RATES OF SKILL
OBSOLESCENCE. IN ORDER TO REMAIN COMPETITIVE, ORGANIZATIONS NEED TO
CONTINUE TRAINING THEIR EMPLOYEES TO USE THE BEST AND LATEST
TECHNOLOGIES AVAILABLE.
2. THE REDESIGN OF WORK INTO JOBS HAVING BROADER RESPONSIBILITIES REQUIRES
EMPLOYEES TO ASSUME MORE RESPONSIBILITY, TAKE INITIATIVE, AND FURTHER
DEVELOP INTERPERSONAL SKILLS TO ENSURE THEIR PERFORMANCE AND SUCCESS.
3. MERGERS AND ACQUISITIONS HAVE GREATLY INCREASED, WHICH REQUIRE
INTEGRATING EMPLOYEES OF ONE ORGANIZATION INTO ANOTHER HAVING A VASTLY
DIFFERENT CULTURE. WHEN FINANCIAL AND PERFORMANCE RESULTS OF MERGER
AND ACQUISITION ACTIVITY FALL SHORT OF PLAN, THE REASON USUALLY REST WITH
PEOPLE MANAGEMENT SYSTEMS RATHER THAN OPERATIONAL OR FINANCIAL
MANAGEMENT SYSTEMS.
4. EMPLOYEES ARE MOVING FROM ONE EMPLOYER TO ANOTHER FOR MORE
FREQUENCY THAN THEY DID IN THE PAST. MORE TIME MUST BE SPENT ON
INTEGRATING NEW HIRES INTO THE WORKPLACE.
5. THE GLOBALIZATION OF BUSINESS OPERATIONS REQUIRES MANAGERS TO ACQUIRE
KNOWLEDGE AND SKILLS RELATED TO LANGUAGE AND CULTURAL DIFFERENCES.
THESE STRATEGIC CHALLENGES FOR TRAINING EXISTS FOR :
• NEW ORGANIZATIONAL HIRES (ORIENTATION AND
SOCIALIZATION, OR SOMETIMES CALLED “ONBOARDING”).
‒ IDEALLY, NEW EMPLOYEE ORIENTATION PROGRAMS WILL
TEACH EMPLOYEES ABOUT : THEIR JOB, THE
ORGANIZATION’S CULTURE AND STRATEGY, AND HOW
THEIR INDIVIDUAL JOBS ARE CRITICAL TO THE
ORGANIZATION’S SUCCESS.
‒ ORIENTATION TRAINING SHOULD ALLOW EMPLOYEES THE
OPPORTUNITY TO ASK QUESTIONS AND INTERACT WITH
THOSE PROVIDING INFORMATION AS WELL AS FACILITATE
THE DEVELOPMENT OF A NETWORK OF WORK
RELATIONSHIPS FOR EMPLOYEES. COWORKERS CAN BE
CRITICAL CATALISTS IN HELPING NEW EMPLOYEES OBTAIN
INFORMATION THEY NEED TO BE PRODUCTIVE.
‒ ANOTHER APPROACH TO NEW – EMPLOYEE TRAINING IS JOB
ROTATION ; WORKERS ARE ROTATED ACROSS DIFFERENT SPECIALIZED
POSITION WITHIN THE ORGANIZATION. ROTATIONS ALLOW NEW
HIRES TO SAMPLE DIFFERENT KINDS OF WORK WITHIN THE
ORGANIZATION AND DETERMINE AN OPTIMAL FIT BETWEEN THEIR
NEEDS AND INTERESTS AND THOSE OF THE ORGANIZATION.
• ROTATION PROGRAMS CAN BE EXPENSIVE IN THE SHORT RUN, BUT
THEY REPRESENT A LONGER- TERM INVESTMENT IN EMPLOYEES
THAT CAN PROVIDE SIGNIFICANT BENEFITS TO AN ORGANIZATION:
• EMPLOYERS BENEFIT IN THAT ROTATION PROGRAMS ALLOW MORE
FLEXIBILITY IN WORK ASSIGNMENT
• EMPLOYEES WHO HAVE BEEN CROSS-TRAINED NOT ONLY BETTER
UNDERSTAND HOW THEIR INDIVIDUAL JOBS CONTRIBUTE TO THE
WHOLE, BUT CAN ALSO BE REASSIGNED AS BUSINESS AND
ORGANIZATION CONDITIONS CHANGE.
• EMPLOYEES ASSUMING NEW JOB RESPONSIBILITIES
IN ORGANIZATION THAT EMPHASIZE BOTH PROMOTION
FROM WITHIN AND THE CAREER DEVELOPMENT OF EXISTING
EMPLOYEES, CONTINUAL TRAINING AND DEVELOPMENT
OPPORTUNITIES ARE CRITICAL. EMPLOYEES MUST BE
UPDATED IN INDUSTRY BEST PRACTICES AND CHANGING
TECHNOLOGY.
• THE KEY STRATEGIC ISSUE : HOW TO MAKE TRAINING EFFECTIVE
• BENEFITS OF TRAINING AND DEVELOPMENT
 STRATEGICALLY TARGETED TRAINING IN CRITICAL SKILLS AND
KNOWLEDGE BASES ADDS TO EMPLOYEE MARKETABILITY AND
EMPLOYABILITY SECURITY, THAT IS CRITICAL IN THE CURRENT
ENVIRONMENT OF RAPIDLY DEVELOPMENT TECHNOLOGY AND
CHANGING JOBS AND WORK PROCESSES, ORGANIZATIONS
CONTINUE TO SEEK OUT AND EMPLOY KNOWLEDGE WORKERS
RATHER THAN WORKERS WITH NARROWLY DEFINED TECHNICAL
SKILLS.
 ORGANIZATION CAN BENEFIT FROM TRAINING, BEYOND
BOTTOM LINE AND GENERAL EFFICIENCY AND PROFITABILITY
MEASURES, WHEN THEY CREATE MORE FLEXIBLE WORKERS
WHO CAN ASSUME VARIED RESPONSIBILITIES AND HAVE A
MORE HOLISTIC UNDERSTANDING OF WHAT ORGANIZATION
DOES AND THE ROLE THEY PLAY IN ORGANIZATION’S SUCCESS.
 CUSTOMER GET BENEFITS FROM EFFECTIVE TRAINING AND
DEVELOPMENT PROGRAMS.
• TWO KEYS TO DEVELOPING SUCCESSFUL AND EFFECTIVE
TRAINING PROGRAMS IN ORGANIZATIONS
• PLANNING AND STRATEGIZING TRAINING
• DETERMINING WHY SPECIFIC TRAINING ACTIVITIES ARE
REQUIRED AND PLACING THE TRAINING WITHIN AN
APPROPRIATE ORGANIZATIONAL CONTEXT. NEEDS
ASSESSMENT INVOLVES THREE LEVEL OF ANALYSIS :
 ORGANIZATIONAL LEVEL : THE TRAINING IS CONSIDERED
WITHIN THE CONTEXT OF THE ORGANIZATION’S CULTURE,
POLITICS, STRUCTURE AND STRATEGY.
 TASK-LEVEL ASSESSMENT : LOOKING AT SPECIFIC DUTIES AND
RESPONSIBILITIES ASSIGNED TO DIFFERENT JOBS AND THE TYPES
OF SKILLS AND KNOWLEDGE NEEDED TO PERFORM EACH TASK.
 THE INDIVIDUAL LEVEL OF ASSESMENT CONSIDERS THE PEOPLE
TO BE TRAINED. THE PROCESS IS TO IDENTIFY “GAPS” IN THE
OCCUPANT OF THE POSITION ; GAPS BETWEEN THE LEVEL OF
REQUIRED SKILLS AND KNOWLEDGE, AND THOSE ALREADY
POSSESSED BY THE PERSON.
• OBJECTIVES AND MEASURES
AFTER TRAINING NEEDS HAVE BEEN ASSESSED, OBJECTIVES FOR THE
TRAINING ACTIVITIES MUST BE DEVELOPED, WICH SHOULD FOLLOW
DIRECTLY FROM THE ASSESSED NEEDS AND BE DESCRIBED IN SPECIFIC
AND MEASURABLE TERMS.
•  DESIGN AND DELIVERY
THE NEXT STEP IS THE DESIGN AND DELIVERY OF THE TRAINING ITSELF.
TWO CRITICAL ISSUES IN THE DESIGN OF TRAINING
 INTERFERENCE
ACCURS WHEN PRIOR TRAINING, LEARNING, OR ESTABLISHED
HABITS ACT AS A BLOCK OR OBSTACLE IN THE LEARNING PROCESS.
 TRANSFER/ DELIVERY
TRANSFER REFERS TO WHETHER THE TRAINEE OR LEARNER CAN
ACTUALLY PERFORM THE NEW SKILL OR USE THE NEW KNOWLEDGE
ON THE JOB; THE EXTENT TO WHICH THE TRAINEE OR LEARNER IS
ABLE TO “TRANSFER” THE LEARNING TO THE ACTUAL JOB SETTING.
• EVALUATION
AFTER THE TRAINING HAS BEEN DELIVERED, IT NEEDS TO BE
EVALUATED, AS AN INTEGRAL PART OF THE TRAINING
PROGRAMS. FEED BACK ON THE TRAINING IS NEEDED TO
DECIDE WHETHER THE THE TRAINING SHOULD BE
CONTINUED IN ITS CURRENT FORM, MODIFIED, OR
ELIMINATED ALTOGETHER.
THE ULTIMATE EVALUATION CRITERIA SHOULD ALSO BE
ASSESSED PRIOR TO TRAINING DELIVERY TO PROVIDE A
COMPARISON BASIS FOR POST TRAINING ASSESSMENT.
• INTEGRATING TRAINING WITH PERFORMANCE
MANAGEMENT SYSTEMS AND COMPENSATION.
ENSURE THAT DESIRED RESULT OF TRAINING ARE REINFORCED
WHEN EMPLOYEES ACHIEVE OR ACCOMPLISH THEM.
WHEN EMPLOYEES EXPAND THE EFFORT TO LEARN NEW SKILLS AD KNOWLEDGE AND ARE
EXPECTED TO IMPLEMENT SUCH LEARNING IN THEIR JOBS, THERE SHOULD BE SOME
INCENTIVE TO DO SO AND SOME ACKNOWLEDGMENT AND REINFORCEMENT OF THAT
PERFORMANCE ONCE IT IS ACHIEVED ; THE MEANS BY WHICH THEIR PERFORMANCE IS
ASSESSED (PERFORMANCE MANAGEMENT) MUST REFLECT THESE CHANGES.

THE MORE CRITICAL THE SKILLS AND KNOWLEDGE ARE TO THE ORGANIZATION’S
STRATEGY, THE GREATER THE EMPHASIS THAT SHOULD BE PLACED ON ASSESSING THEM
IN THE ORGANIZATION’S PERFORMANCE MANAGEMENT SYSTEM. SIMILARLY,
COMPENSATION SHOULD REFLECT THE RESULTS OF TRAINING.
 PART II
PERFORMANCE MANAGEMENT AND FEEDBACK
• AN ORGANIZATION’S LONG-TERM SUCCESS IN MEETING ITS
STRATEGIC OBJECTIVES RESTS WITH ITS ABILITY TO MANAGE
EMPLOYEE PERFORMANCE AND ENSURE THAT PERFORMANCE
MEASURES ARE CONSISTENT WITH THE ORGANIZATION’S NEEDS 
PERFORMANCE MANAGEMENT AND PERFORMANCE EVALUATION /
PERFORMANCE APPRAISAL / PERFORMANCE MEASUREMENT IS
BECOMING MORE OF A STRATEGIC ISSUE FOR ORGANIZATIONS.
 
2.1 PERFORMANCE MANAGEMENT : THE CONTINUOUS PROCESS OF
IDENTIFYING, MEASURING, AND DEVELOPING THE PERFORMANCE
OF INDIVIDUALS AND TEAMS AND ALIGNING THEIR PERFORMANCE
WITH THE ORGANIZATION’S GOALS (Dessler, Gary. 2011 : P.357)
• PERFORMANCE MANAGEMENET SYSTEMS (PERFORMANCE
FEEDBACK) NEEDS TO BE UNDERSTOOD AND ACCEPTED BY
THE ORGANIZATION’S EMPLOYEES AND MUST PROVIDE
THEM WITH MEANINGFUL INFORMATION IF IT IS TO BE
EFFECTIVE. EFFECTIVE PERFORMANCE MANAGEMENT
SYSTEMS REQUIRE EMPLOYEES AND SUPERVISORS TO
WORK TOGETHER TO SET PERFORMANCE EXPECTATIONS,
REVIEW RESULTS, ASSESS ORGANIZATIONAL AND
INDIVIDUAL NEEDS, AND PLAN FOR THE FUTURE.

• PERFORMANCE APPRAISAL AND PERFORMANCE

EVALUATION IMPLY A ONE-SIDED JUDGMENTAL APPROACH
TO PERFORMANCE MANAGEMENT, WHERE EMPLOYEES
HAVE LITTLE INVOLVEMENT IN THE PROCESS.
• PERFORMANCE : THE ACCOMPLISHMENT OF AN
EMPLOYEE’S OR MANAGER’S ASSIGNED DUTIES AND
THE OUTCOMES PRODUCED ON A SPECIFIES JOB
FUNCTION OR ACTIVITY DURING A SPECIFIED TIME
PERIOD
AN EFFECTIVE PERFORMANCE MANAGEMENT PROCESS CONNECTS THREE TIME PERIODS.
2.2. KEY ELEMENTS OF PERFORMANCE MANAGEMENT
• THE CREATION OF A SHARED VISION OF THE
ORGANIZATION’S STRATEGIC OBJECTIVES.
• THE ESTABLISHMENT OF PERFORMANCE OBJECTIVES
(DERIVED FROM THE ORGANIZATION’S STRATEGIC
BUSINESS OBJECTIVES ) FOR EACH FUNCTION, GROUP
AND INDIVIDUAL.
• THE USE OF A FORMAL REVIEW PROCESS TO
EVALUATE FUNCTIONAL GROUP AND INDIVIDUAL
PROGRESS TOWARD GOAL ACHIEVEMENT.
• THE LINKING OF PERFORMANCE EVALUATION AND
EMPLOYEE DEVELOPMENT AND REWARDS TO
MOTIVATE AND REINFORCE DESIRED BEHAVIOR.
2.3. GENERAL CHARACTERISTICS OF PERFORMANCE MANAGEMENT
• MUCH BROADER CONCEPT THAN PERFORMANCE APPRAISAL.
• IT AIMS TO IMPROVE ORGANIZATIONAL, FUNCTIONAL, UNIT AND
INDIVIDUAL EMPLOYEE PERFORMANCE.
• FOCUS ON STRATEGIC PLANNING AND DEVELOPMENT. IT AIMS TO LINK THE
ORGANIZATION’S KEY OBJECTIVES AND STRATEGIES WITH ORGANIZATIONAL,
FUNCTIONAL, UNIT AND INDIVIDUAL OBJECTIVES AND STRATEGIES.
• MEASURES THE PROGRESS BEING MADE TOWARDS THE ACHIEVEMENT OF
AN ORGANIZATION’S STRATEGIC BUSINESS OBJECTIVES, BY :
– EVALUATING ORGANIZATIONAL, FUNCTIONAL, UNIT AND INDIVIDUAL
PERFORMANCE
– IDENTIFYING NEEDED PERFORMANCE IMPROVEMENTS
– DEVELOPING NEW PERFORMANCE OBJECTIVES
– ACTIVATING MECHANISMS FOR CONVERTING IMPROVED PERFORMANCE
INTO REWARDS.
• INCORPORATE JOB DESIGN, RECRUITMENT AND SELECTION, TRAINING AND
DEVELOPMENT, CAREER PLANNING, AND REMUNERATION AND BENEFITS, IN
ADDITION TO PERFORMANCE APPRAISAL. ( Stone, Raymond . 2008 : 297 ).
2.4. THE PURPOSE OF THE SYSTEM AND HOW IT WILL BE USED.
• EMPLOYEE DEVELOPMENT
– BY ASSESSING DEFECIENCIES IN PERFORMANCE LEVELS AND SKILLS, AN
ORGANIZATION CAN DETERMINE SPECIFIC TRAINING AND DEVELOPMENT
NEEDS.
– ASSESSING INDIVIDUAL AND TERM STRENGTHS AND WEAKNESSES CAN
ALLOW EMPLOYEE AND TEAM DEVELOPMENT PLANS TO BE ESTABLISHED
• DETERMINE REWARDS AND COMPENSATION
SALARY, PROMOTION, RETENTION, AND BONUS DECISIONS ARE
FREQUENTLY BASED ON DATA COLLECTED AS PART OF
PERFORMANCE MEASUREMENT. THEREFORE, EMPLOYEES MUST
UNDERSTAND AND ACCEPT PERFORMING FEEDBACK SYSTEM AS
A PREREQUISITE FOR ACCEPTING DECISIONS MADE RELATIVE TO
REWARDS AND COMPENSATION; ANY PERSIEVED UNFAIRNESS OF
THE PERFORMANCE FEEDBACK SYSTEM ON THE PART OF
EMPLOYEES WILL RESULT IN A PERCIEVED UNFAIRNESS OF THE
COMPENSATION SYSTEM.
• ENHANCE EMPLOYEE MOTIVATION
A FORMAL PROCESS THAT ALLOWS FOR EMPLOYEE ACKNOWLEDGMENT AND PRAISE
CAN REINFORCE THE BEHAVIORS AND OUTCOMES THAT ARE BENEFICIAL TO THE UNIT
OR ORGANIZATION. EMPLOYEE CAN BE TOLD SPECIFICALLY WHAT THE
ORGANIZATION’S EXPECTATIONS FOR THEM ARE, AND EMPLOYEES CAN INFORM
THEIR EMPLOYERS OF THE TYPES OF JOB ASSIGNMENTS AND RESPONSIBILITIES THEY
DESIRE.
• FACILITATE LEGAL COMPLIANCE
CLAIMS OF UNFAIR DISMISSAL AND/OR VIOLATIONS ARE BEST SUPPORTED WHEN THE
ORGANIZATION HAS DOCUMENTATION OF PERFORMANCE DEFICIENCIES, WHICH IS
OFTEN ADMITTED INTO COURT TO PROVE NONDISCRIMINATORY MEANS OF TAKING
REMEDIAL ACTION AGAINST EMPLOYEES AND FOR TERMINATION OF EMPLOYMENT.
DATA SHOWING UNACCEPTABLE PERFORMANCE, PARTICULARLY OVER A PERIOD OF
TIME, IS STRONG DEFENSE AGAINST SUCH CHARGES OF UNLAWFUL BIAS.
• FACILITATE HUMAN RESOURCE PLANNING
PERFORMANCE DATA CAN ALERT THE ORGANIZATION TO DEFECIENCIES IN THE
OVERALL LEVEL AND FOCUS OF EMPLOYEE SKILLS AND CAN BE USED IN CRITICALLY
PLANNING FOR FUTURE STAFFING NEEDS RELATIVE TO THE SKILLS AND ABILITIES OF
CURRENT EMPLOYEES.
• THE THREE-STEP PERFORMANCE APPRAISAL CYCLE

ESTABLISH GOALS AND

PERFORMANCE STANDARDS

FEEDBACK AND CORRECTIVE

ACTION : COACH AND COUNCEL APPRAISE THE EMPLOYEE’S
EMPLOYEE OR OTHER STEPS AS PERFORMANCE
REQUIRED
 PART III
PERFORMANCE APPRAISAL / EVALUATION

3.1. - PERFORMANCE APPRAISAL : EVALUATING AN EMPLOYEE’S

CURRENT AND/OR PAST PERFORMANCE RELATIVE TO HIS
OR HER PERFORMANCE STANDARD
‒ INVOLVES :
1) SETTING WORK STANDARDS
2) ASSESSING THE EMPLOYEE’S ACTUAL PERFORMANCE
RELATIVE TO THOSE STANDARDS
3) PROVIDING FEEDBACK TO THE EMPLOYEE WITH THE AIM
OF HELPING HIM OR HER TO ELIMINATE PERFORMANCE
OFFICIENCIES OR TO CONTINUE ABOVE PAR
PERFORMANCE
3.2. WHO EVALUATES
3.2.1. SUPERVISOR
TRADITIONALLY, PERFORMANCE EVALUATION WAS PERFORMED BY THE
EMPLOYEE’S IMMEDIATE SUPERVISOR, WHO COMMUNICATED TO THE
EMPLOYEE THE SUPERVISORY ASSESSMENT OF PERFORMANCE.
WEAKNESSES OF THIS SYSTEM :
‒ OFFERED VERY LITTLE OPPORTUNITY FOR INPUT OR FEEDBACK FROM THE
EMPLOYEE
‒ IMMEDIATE SUPERVISORS OFTEN DO NOT HAVE THE APPROPRIATE
INFORMATION TO PROVIDE INFORMED FEEDBACK AND DO NOT OBSERVE
THE EMPLOYEE’S DAY-TO-DAY WORK ENOUGH TO ASSESS PERFORMANCE
ACCURATELY
‒ SUPERVISORS NOT TO BE CURRENT ON THE TECHNICAL DIMENSIONS OF
A SUBORDINATE’S WORK, WHICH MAY BE BEST EVALUATED BY PEERS,
CUSTOMERS, OR OTHER EXTERNAL CONSTITUENCIES.
‒ TECHNICAL LINE MANAGERS OFTEN HAVE NO TRAINING IN OR
APPRECIATION FOR THE PROCESS AND CAN SEE IT AS NOTHING MORE
THAN AN ADMINISTRATIVE BURDEN
‒ PERFORMANCE ASSESSMENT IS AN INHERENTLY SUBJECTIVE PROCESS THAT IS
PRONE TO A VARIETY OF PERCEPTUAL ERRORS BY SUPERVISORS :
 HALO EFFECT : THE RATER ALLOWS ONE POSITIVE OR NEGATIVE TRAIT,
OUTCOME, OR CONSIDERATION TO INFLUENCE OTHER MEASURES
 STEREOTYPING/PERSONAL BIAS : THE RATER MAKES PERFORMANCE
JUDGMENTS BASED ON CHARACTERISTICS OF THE EMPLOYEE RATHER THAN
ONE EMPLOYEE PERFORMANCE
 CONTRAST ERROR : THE EMPLOYEE’S ASSESSMENT IS BASED ON THOSE
BEING GIVEN TO OTHER EMPLOYEE
 RECENCY ERROR : THE EVALUATION IS BIASED TOWARD EVENTS AND
BEHAVIORS THAT HAPPENED IMMEDIATELY PRIOR TO THE TIME THE
EVALUATION IS COMPLETED
 CENTRAL TENDENCY ERROR : THE EVALUATOR AVOIDS THE HIGHER AND
LOWER ENDS OF PERFORMANCE ASSESSMENT RATINGS IN FAVOR OF
PLACING ALL EMPLOYEES AT OR NEAR THE MIDDLE OF THE SCALES.
 LENIENCY/STRICTNESS ERROR : EMPLOYEES ARE GENERALLY ALL RATED
WELL ABOVE THE STANDARDS (MAKING THE SUPERVISOR LOOK EFFECTIVE
AND/OR ATTEMPTING TO APPEASE EMPLOYEES)
‒ SUPERVISORS MIGHT INTERNALLY INFLATE OR DEFLATE EMPLOYEE
RATING.
‒ AN EMPATHETIC SUPERVISOR MIGHT INFLATE THE RATING GIVEN TO AN
EMPLOYEE HAVING DIFFICULTIES WITH PERSONAL MATTERS; CONVERSELY,
A SUPERVISOR WHO SEES A SUBORDINATE AS A THREAT TO THE
SUPERVISOR’S JOB MIGHT INTERNATIONALLY DEFLATE PERFORMANCE
RATINGS.
‒ SUPERVISORS AND SUBORDINATES MAY AGREE ON LEVELS OF
PERFORMANCE BUT DISAGREE ON THE CAUSES FOR SUCH
PERFORMANCE.
‒ SUPERVISORS ARE MUCH MORE LIKELY TO PLACE THE RESPONSIBILITY
FOR POOR PERFORMANCE WITH THE EMPLOYEE, WHEREAS THE
EMPLOYEE IS LIKELY TO CITE ORGANIZATIONAL FACTORS OUTSIDE HIS OR
HER CONTROL FOR PERFORMANCE DEFICIENCIES.
3.2.2. PEERS FEEDBACK
CAN BE USEFULL FOR DEVELOPMENTAL PURPOSE, BUT PEERS
FEEDBACK SYSTEM MUST BE ADMINISTERED WITH CARE. THEY CAN BE
VERY POLITICAL AND SELF-SERVING IN ORGANIZATION WHERE
EMPLOYEES COMPETE WITH EACH OTHER, FORMALLY OR INFORMALLY,
ESPECIALLY IN ORGANIZATIONS WITH COMPETITIVE ORGANIZATIONAL
CULTURE.
PEER FEEDBACK SYSTEMS CAN ONLY BE EFFECTIVE WHEN POLITICAL
CONSIDERATIONS AND CONSEQUENCES ARE MINIMIZED (MEANING
THAT PEERS HAVE NOTHING AT STAKE IN THEIR ASSESSMENTS OF
COLLEAGES) AND EMPLOYEES HAVE A SENSE OF TRUST IN THE
ORGANIZATION AND ITS PERFORMANCE MEASUREMENT SYSTEM
3.2.3. SUBORDINATES PERFORMANCE FEEDBACK
CAN PROVIDE INSIGHTS INTO THE INTERPERSONAL AND MANAGERIAL
STYLES OF EMPLOYEES AND CAN ASSIST THE ORGANIZATION IN
ADDRESSING EMPLOYEE DEVELOPMENT NEEDS, PARTICULARLY FOR
HIGH-POTENTIAL EMPLOYEES. SUBORDINATE EVALUATIONS ARE ALSO
EXELLENT MEASURES OF AN INDIVIDUAL’S LEADERSHIP CAPABILITIES.
3.2.4. CUSTOMERS FEEDBACK
CUSTOMERS CAN PROVIDE THE FEEDBACK THAT IS MOST FREE FROM BIAS.
FEEDBACK FROM CUSTOMERS CAN BE CRITICAL FOR FACILITATING EMPLOYEE
DEVELOPMENT AND DETERMINING APPROPRIATE REWARDS BECAUSE IT IS
MOST CLEARLY RELATED TO THE ORGANIZATION’S BOTTOM LINE.
3.2.5. SELF-EVALUATIONS
ALLOW EMPLOYEES TO PROVIDE THEIR OWN ASSESSMENTS AND MEASURES
OF THEIR OWN PERFORMANCE, WHICH HAS AT LEAST TWO IMPORTANT
BENEFITS FOR ORGANIZATIONS :
1) IT CAN BE MOTIVATING BECAUSE IT ALLOWS THE EMPLOYEE TO PARTICIPATE
IN A CRITICAL DECISION THAT IMPACTS OR HER EMPLOYMENT AND CAREER.
2) THE EMPLOYEE CAN PROVIDE INSIGHTS, EXAMPLES, AND MORE HOLISTIC
ASSESSMENT OF PERFORMANCE THAN THAT PROVIDED BY SUPERVISORS OR
PEERS, WHO GENERALLY SPEND A LIMITED TIME OBSERVING AND
INTERACTING WITH EACH EMPLOYEE.
INDIVIDUAL EMPLOYEES MAY ALSO BE ABLE TO PROVIDE PERFORMANCE
INFORMATION OF WHICH OTHERS MAY BE UNAWARE.
3.2.6. MULTIRATER SYSTEMS OR 360-DEGREE FEEDBACK SYSTEMS
ARE PERFORMANCE MANAGEMENT SYSTEMS THAT SOLICIT
THE INPUT AND ADVICE OF OTHERS BESIDES THE
IMMEDIATE SUPERVISOR. THESE SYSTEMS CAN BE
BENEFICIAL BECAUSE THE ORGANIZATION AND EMPLOYEE
GAIN MULTIPLE PERSPECTIVES AND INSIGHTS INTO THE
EMPLOYEE’S PERFORMANCE. EACH OF THESE SOURCES OF
PERFORMANCE FEEDBACK CAN BALANCE EACH OTHER
RELATIVE TO ANY INHERENT ORGANIZATIONAL POLITICS
THAT MAY BE AT PLAY IN THE PROCESS.
HOWEVER, THERE IS A COST TO SUCH SYSTEMS : TIME-
CONSUMING AND LABORIOUS TO ADMINISTER. DATA
FROM NUMEROUS SOURCES NEED TO BE ANALYZED,
SYNTHESIZED, AND OCCUSIONALLY, RECONCILED.
3.3. WHAT TO EVALUATE
ESSENTIALLY, EMPLOYEE EVALUATIONS CAN BE BASED ON THEIR TRAITS, THEIR
BEHAVIORS, OR THE RESULTS OR OUTCOMES THEY ACHIEVE
3.3.1. TRAITS-BASED MEASURES FOCUS ON THE GENERAL ABILITIES AND
CHARACTERISTICS OF THE EMPLOYEE, INCLUDE DIMENSIONS SUCH AS :
LOYALTY TO THE ORGANIZATION, INDUSTRIOUSNESS, AND
GREGARIOUSNESS.
3.3.2. BEHAVIOR-BASED MEASURES FOCUS ON WHAT AN EMPLOYEE DOES BY
EXAMINING SPECIFIC BEHAVIORS OF THE EMPLOYEE, INCLUDE THE
EMPLOYEE’S ABILITY TO GET ALONG WITH OITHERS, PUNCTUALITY,
WILLINGNESS TO TAKE INITATIVE, AND ABILITY TO MEET DEADLINES.
BEHAVIORAL MEASURES ARE VERY USEFULL FOR FEEDBACK PURPOSES
BECAUSE THEY SPECIFY EXACTLY WHAT THE THE EMPLOYEE IS DOING
CORRECTLY AND WHAT THE EMPLOYEE SHOULD DO DIFFERENTLY.
3.3.3.RESULTS-BASED MEASURES FOCUS ON SPECIFIC ACCOMPLISHMENTS OR
DIRECT OUTCOMES OF AN EMPLOYEES WORK, INCLUDE MEASURES OF
NUMBER OF UNITS SOLD, DIVISIONAL PROFITABILITY, COST REDUCTION,
EFFICIENCY, OR QUALITY.
3.4. HOW TO EVALUATE
3.4.1. ABSOLUTE BASIS EVALUATE EMPLOYEE
STRICTLY ACCORDING TO THE
PERFORMANCE REQUIREMENTS OR
STANDARDS OF THE JOB.
3.4.2. RELATIVE BASIS EVALUATE EMPLOYEES IN
COMPARISON TO COWORKERS, SLOTTING
EMPLOYEES INTO CATEGORIES, SUCH AS
THE TOP 10 PERCENT OF THE EMPLOYEES IN
THE WORK UNIT RECEIVING AN OVERALL
OUTSTANDING EVALUATION.
3.5. MEASURES OF EVALUATION
3.5.1. GRAPHIC RATING SCALES
ONE OF THE MOST WIDELY USED ASSESSMENT AND FEEDBACK DEVICES ;
EASY TO DESIGN, USE, AND UPDATE AS JOB REQUIREMENT CHANGE, THEY
INVOLVE A SCALE THAT GIVES THE EVALUATOR THE PERFORMANCE
MEASURES FOR TRAITS, BEHAVIORS, OR RESULTS.
1. Unsatisfactory performance with immediate improvement needed.
2. Performance that did not meet critical expectations and needs
improvement
3. Acceptable levels of performance that meets expectations.
4. Performance met and in cases exceeded expectations.
5. Outstanding performance that set an example for coworkers to follow

3.5.2. WEIGHTED CHECKLISTS

PROVIDE THE EVALUATOR WITH SPECIFIC CRITERIA ON WHICH
PERFORMANCE IS TO BE ASSESSED AND ASK THE EVALUATOR TO CHECK
THOSE CRITERIA THAT APPLY TO THE EMPLOYEE. THE DIFFERENT
DIMENSIONS ARE WEIGHTED BASED ON THEIR IMPORTANCE TO THE
ORGANIZATION; WEIGHTS ARE UNKNOWN TO THE EVALUATOR AS THE
CHECKLIST IS BEING COMPLETED.
EXAMPLE
Instructions : Check all those qualities that are accurate
assessments of the employee’s performance
3.5.3. BEHAVIORALLY ANCHORED RATING SCALES (BARS)
MORE SPECIFIC TYPE OF GRAPHIC RATING SCALE. THE EVALUATOR IS
GIVEN SPECIFIC DESCRIPTIONS OF BEHAVIORS ALONG A NUMERICALLY
RATED SCALE AND IS ASKED TO SELECT THE BEHAVIOR THAT MOST
CORRESPONDS TO THE EMPLOYEES PERFORMANCE FOR THE TIME PERIOD
BEING EVALUATED. A BARS CAN BE DIFFICULT AND TIME-CONSUMING TO
DEVELOP, BUT IT CAN HELP TO OVERCOME SOME OF THE SUBJECTIVITY
AND BIASES THAT MAY RESULT WHEN EVALUATORS ARE GIVEN NO SET
DESCRIPTIONS FOR PERFORMANCE MEASURES.
A POTENTIAL PROBLEM WITH A BARS MAY BE THAT AN EMPLOYEE’S
BEHAVIOR IS INCONSISTENT.
3.5.4. BEHAVIORAL OBSERVATION SCALE (BOS)
B.O.S ADDRESSES THE PROBLEM OF INCONSISTENT EMPLOYEE
PERFORMANCE BY MEASURING FREQUENCIES ALONG THE SCALE.
INSTEAD OF PROVIDING EXAMPLES OF DIFFERENT BEHAVIORS AS WOULD
BE PRESENTED AT B.A.R.S, A B.O.S. DETERMINES WHICH BEHAVIOR OF A
B.A.R.S. IS OPTIMAL AND ASKS FOR AN ASSESSMENT OF THE FREQUENCY
WITH WHICH THE EMPLOYEE DISPLAYS IT.
3.5.5. MANAGEMENT BY OBJECTIVES (MBO)
THIS PROCESS INVOLVES HAVING THE EMPLOYEE MEET WITH HIS OR HER
IMMEDIATE SUPERVISOR PRIOR TO THE TIME PERIOD FOR WHICH
PERFORMANCE IS TO BE ASSESSED. THE TWO PARTIES JOINTLY AGREE ON THE
EMPLOYEE’S WORK OBJECTIVES FOR THE FORTHCOMING TIME PERIOD.
THE PROCESS OF NEGOTIATION IS IMPORTANT HERE. IDEALLY, THIS PROCESS
INVOLVES SETTING OBJECTIVES THAT ARE SIMULTANEOUSLY CONSISTENT WITH
THE ORGANIZATION’S STRATEGY AND SATISFY JOB REQUIREMENTS AND ALSO
PROVIDE CHALLENGING WORK ASSIGNMENTS THAT ARE CONSISTENT WITH
THE EMPLOYEE’S DEVELOPMENT NEEDS AND CAREER ASPIRATIONS.
EVEN THOUGH OBJECTIVES ARE DETERMINED FOR A SET TIME PERIOD,
COMMONLY SIX MONTHS OR ONE YEAR, THIS DOES NOT MEAN THAT
PERFORMANCE FEEDBACK SHOULD BE WITHHELD UNTIL THE END OF THE
TIME PERIOD. INFORMAL, REGULAR FEEDBACK IS MORE EFFECTIVE ;
PARTICULARLY WHEN IT IS PROVIDED IMMEDIATELY FOLLOWING SOME
OUTCOME OR BEHAVIOR, IT HAS A FAR STRONGER AND MORE CONSTANT
IMPACT ON MOTIVATION THAN FEEDBACK THAT IS ONLY PROVIDED ANNUALLY
IN A MORE FORMAL MANNER.
M.B.O SYSTEMS OFTEN RESULT IN :
‒ ENHANCED EMPLOYEE MOTIVATION BECAUSE EMPLOYEES ARE
ALLOWED TO PROVIDE INPUT IN DETERMINING THEIR JOB
RESPONSIBILITIES AND IN DISCUSSING CRITICAL ORGANIZATIONAL
GOALS TO WHICH THEY CAN CONTRIBUTE.
‒ ENHANCED EMPLOYEE COMMITMENT TO REACHING PERFORMANCE
OBJECTIVES THAT THEY HAVE AGREED TO AND NEGOTIATED FOR
THEMSELVES RATHER THAN HAVING OBJECTIVES DETERMINED FOR
THEM BY THE ORGANIZATION.
THREE COMMON OVERSIGHTS CAN INHIBIT THE EFFECTIVENESS THIS
SYSTEM :
1) SETTING OBJECTIVES THAT ARE TOO VAGUE
2) SETTING OBJECTIVES THAT ARE UNREALISTICALLY DIFFICULT
3) NOT CLARIFYING HOW PERFORMANCE WILL BE MEASURED,
PARTICULARLY WHEN THE OBJECTIVE ITSELF IS NOT QUANTIFIABLE
AND REQUIRES SOME SUBJECTIVITY IN EVALUATION.
ANY OBJECTIVES SET AS PART OF SUCH A PROCESS MUST BE :
‒ SPECIFIC, MEASURABLE, AND WITHIN THE EMPLOYEE’S
CONTROL IF THE FEEDBACK SYSTEM IS TO BE BENEFICIAL
TO THE ORGANIZATION AND TO THE EMPLOYEE.
‒ CHALLENGING YET OBTAINABLE.
UNREALISTIC GOALS MAY HAMPER MOTIVATION;
SUPERVISORS NEED TO HAVE FAITH IN THEIR EMPLOYEE’S
ABILITIES YET REALIZE WHERE TO DRAW THE LINE.
‒ VALID
OCCASIONALLY, INAPPROPRIATE OBJECTIVE MEASURES
MAY BE SELECTED. THESE MEASURES MAY BE EASILY
QUANTIFIABLE AND ACCURATELY MEASURABLY BUT NOT
DIRECTLY RELATED TO PERFORMANCE.
FOR EXAMPLE :
• A TEACHER COULD BE EVALUATED ON THE TEST SCORES OF
STUDENTS. ALTHOUGH THIS IS AN OBJECTIVE MEASURE, IT
MIGHT ENCOURAGE THE TEACHER TO TEACH STUDENTS TO
MAXIMIZE SCORES RATHER THAN LEARN.
• A SALES PERSON COULD SIMILARLY BE EVALUATED ON SALES
VOLUME, WHICH IS EASILY MEASURABLE, BUT NOT GET
EVALUATED ON EXPENCES INCURRED, CUSTOMER SERVICE
RETURNS, OR PROFESSIONAL DEMEANOR.
WHEN THE OBJECTIVES ARE SET, THE PARTIES MUST ALSO
REACH AGREEMENT AS TO HOW THE PERFORMANCE CRITERIA
WILL BE MEASURED AND ASSESSED; THIS IS PARTICULARLY
IMPORTANT WHEN THERE ARE NO OBJECTIVE MEASURES
AVAILABLE FOR ASSESSING PERFORMANCE.
3.6. WHY PERFORMANCE MANAGEMENT SYSTEMS OFTEN FAIL

DESPITE THE IMPORTANCE OF PERFORMANCE MANAGEMENT

SYSTEMS, MANY MANAGERS AND EXECUTIVES ARE NOT COMMITTED
TO PROVIDING PERFORMANCE FEEDBACK. THE PROCESS IS OFTEN SEEN
AS TIME CONSUMING AND CUMBERSOME AND CAN MAKE MANAGERS
UNCOMFORTABLE.
3.6.1. OUTLINES SOME OF THE REASONS MANAGERS MAY RESIST – OR
TOTALLY IGNORE - PERFORMANCE MANAGEMENT PROCESSES :
 PROCESS IS TOO COMPLICATED
 NO IMPACT ON JOB PERFORMANCE
 POSSIBLE LEGAL CHALLENGES
 LACK OF CONTROL OVER PROCESS
 NO CONNECTION WITH REWARDS
 COMPLEXITY AND LENGTH OF FORMS
3.6.2. STRATEGIES FOR IMPROVING THE PERFORMANCE MANAGEMENT
SYSTEM.
 INVOLVE MANAGERS IN THE DESIGN OF THE SYSTEM
 HOLD MANAGERS ACCOUNTABLE FOR THE PERFORMANCE AND
DEVELOPMENT OF THEIR SUBORDINATES
 SET CLEAR EXPECTATIONS FOR PERFORMANCE
 SET SPECIFIC OBJECTIVES FOR THE SYSTEM
 THE PERFORMANCE MEASURES TO REWARDS
 GAIN COMMITMENT FROM SENIOR MANAGEMENT
 COMPENSATION
• COMPENSATION – A KEY STRATEGIC AREA FOR ORGANIZATION – IMPACTS
AN EMPLOYER’S ABILITY TO ATTRACT APPLICANTS, RETAIN EMPLOYEES,
AND ENSURE OPTIMAL LEVELS OF PERFORMANCE FROM EMPLOYEES IN
MEETING THE ORGANIZATION’S STRATEGIC OBJECTIVES.
• EMPLOYEE COMPENSATION
• ALL FORM OF PAY OR REWARDS GOING TO EMPLOYEES AND ARISING
FROM THEIR EMPLOYEMENT ( Dessler, Gary, 2011 : 413 )
• WHAT EMPLOYEE RECEIVE IN EXCHANGE FOR THEIR WORK ; INCLUDES
PAY AND BENEFITS ( TOTAL REMUNERATION ) OR JUST PAY / CASH
REMUNERATION ( Stone, Raymond. 2008 : 435 )
• STRATEGIC REMUNERATION / COMPENSATION INVOLVES
REMUNERATION PRACTICES BEING ALIGNED WITH THE ACHIEVEMENT
OF THE ORGANIZATION’S STRATEGIC BUSINESS OBJECTIVES / SBO
( Stone, Raymond. 2008 : 435 ).
• A FORMAL REMUNERATION SHOULD :
• REFLECT THE ORGANIZATION’S STRATEGIC BUSINESS AND CULTURE
• ARTICULATE THE OBJECTIVES THAT THE ORGANIZATION WANTS TO
ACHIEVE VIA ITS REMUNERATION PROGRAMS
• BE COMMUNICATED TO ALL EMPLOYEES
• PROVIDE THE FOUNDATION FOR DESIGNING AND IMPLEMENTING
REMUNERATION AND BENEFIT PROGRAMS.
• EQUITY / FAIRNESS
IN DESIGNING THE OVERALL COMPENSATION SYSTEM, AN ORGANIZATION
NEEDS TO BE CONCERNED WITH PERCIEVED EQUITY OR FAIRNESS OF THE
SYSTEM FOR EMPLOYEES RELATIVE TO THEIR COWORKERS AND TO
INDIVIDUALS WHO HOLD COMPARABLE JOBS IN OTHER ORGANIZATIONS.
• INTERNAL EQUITY INVOLVES THE PERCIEVED FAIRNESS OF PAY
DIFFERENTIALS AMONG DIFFERENT JOBS WITHIN AN ORGANIZATION
• EXTERNAL EQUITY INVOLVES EMPLOYEE PERCEPTION OF THE FAIRNESS
OF THEIR COMPENSATION RELATIVE TO THOSE OUTSIDE THE
ORGANIZATION
• INDIVIDUAL EQUITY CONSIDERS EMPLOYEE PERCEPTION OF PAY
DIFFERENTIALLS AMONG INDIVIDUALS WHO HOLD IDENTICAL JOBS IN
THE SAME ORGANIZATION
• REMUNERATION PROGRAM OBJECTIVES (Stone, Raymond. 2008 : 438-439 )

FOR THE ORGANIZATION

• ATTRACT AND KEEP THE DESIRED QUALITY AND MIX OF EMPLOYEES
• ENSURE EQUITABLE TREATMENT
• MOTIVATE EMPLOYEES TO IMPROVE THEIR PERFORMANCE CONTINUALLY
AND TO STRIVE TO ACHIEVE THE ORGANIZATION’S STRATEGIC BUSINESS
OBJECTIVES ( SBO )
• REINFORCE THE ORGNIZATION’S KEY VALUES AND THE DESIRED
ORGANIZATIONAL CULTURE
• DRIVE AND REINFORCE DESIRED EMPLOYEE BEHAVIOR
• ENSURE REMUNERATION IS MAINTAINING AT THE DESIRED COMPETITIVE
LEVEL
• CONTROL REMUNERATION COST
• ENSURE OPTIMUM VALUE FOR EACH REMUNERATION DOLLAR SPENT
• COMPLY WITH LEGAL REQUIREMENT
FOR EMPLOYEES
• ENSURE EQUITABLE TREATMENT
• ACCURATELY MEASURE AND APPROPRIATELY REWARD PERFORMANCE
AND CONTRIBUTION TO THE ACHIEVEMENT OF THE SBO
• PROVIDE APPROPRIATE REMUNERATION CHANGES BASED ON
PERFROMANCE, PROMOTION, TRANSFER OR CHANGING CONDITION
• PROVIDE REGULAR REMUNERATION AND PERFORMANCE REVIEW.
COMPENSATION SYSTEM
SET OF REWARDS THAT ORGANIZATIONS PROVIDE TO
INDIVIDUALS IN RETURN FOR THEIR WILLINGNESS TO PERFORM
VARIOUS JOBS AND TASKS WITHIN THE ORGANIZATION.
INCLUDES : WAGES, SALARY, INCENTIVES AND EMPLOYEE
BENEFITS PROGRAM.
WAGES
COMPENSATION IN THE FORM OF MONEY PAID FOR TIME WORKED.
 
SALARY
COMPENSATION IN THE FORM OF MONEY PAID FOR DISCHARGING THE RESPONSIBILITIES OF A JOB;
USUALLY EXPRESSED AS AN AMOUNT PAID PER YEAR OR PER MONTH.
 
INCENTIVE PROGRAMS
SPECIAL COMPENSATION PROGRAM DESIGNED TO MOTIVATE HIGH PERFORMANCE.
 
BONUS
INDIVIDUAL PERFORMANCE INCENTIVE IN THE FORM OF A SPECIAL PAYMENT MADE OVER AND
ABOVE THE EMPLOYEE’S SALARY.

MERIT SALARY SYSTEM

INDIVIDUAL INCENTIVE LINKING COMPENSATION TO PERFORMANCE IN NONSALES JOBS.
 
PROFIT- SHARING PLAN
INCENTIVE PLAN FOR DISTRIBUTING BONUSES TO EMPLOYEES WHEN COMPANY PROFIT RISE ABOVE
A CERTAIN LEVEL.
 
GAIN- SHARING PLAN
INCENTIVE PLAN THAT REWARDS GROUPS FOR PRODUCTIVITY IMPROVEMENTS.
PAY-FOR KNOWLEDGE PLAN
INCENTIVE PLAN TO ENCOURAGE EMPLOYEES TO LEARN NEW SKILLS OR BECOME PROFICIENT AT
DIFFERENCE JOBS.
 
BENEFITS
COMPENSATION OTHER THAN WAGES AND SALARIES.
 
WORKERS COMPENSATION INSURANCE
LEGALLY REQUIRED INSURANCE FOR COMPENSATING WORKERS INJURED ON THE JOB : HEALTH,
LIFE, AND DISABILITY INSURANCE.
 
RETIREMENT PLAN
WORKERS BENEFIT SET UP TO PAY PENSIONS TO WORKERS WHEN THEY RETIRE.
 
CAFETARIA BENEFITS PLAN
BENEFIT PLAN THAT SETS LIMITS ON BENEFITS PER EMPLOYEE, EACH OF WHOM MAY CHOOSE
FROM A VARIETY OF ALTERNATIVE BENEFITS.

EQUAL EMPLOYMENT OPPORTUNITY

LEGALLY MANDATED NONDISCRIMINATION IN EMPLOYMENT ON THE BASIS OF RACE, CREED, SEX,
OR NATIONAL ORIGIN.
 LABOR & INDUSTRIAL RELATIONS
• EMPLOYEE RELATIONS
 LABOR RELATIONS IS A KEY STRATEGIC ISSUE FOR ORGANIZATIONS BECAUSE THE
NATURE OF THE RELATIONSHIP BETWEEN THE EMPLOYER AND EMPLOYEES CAN
HAVE A SIGNIFICANT IMPACT ON MORALE, MOTIVATION, AND PRODUCTIVITY.
 HAVING GOOD EMPLOYEE RELATIONS MEANS PROFIDING FAIR AND CONSISTENT
TREATMENT TO ALL EMPLOYEES SO THAT THEY WILL BE COMMITED TO THE
ORGANIZATION
 COMPANIES WITH GOOD EMPLOYEE RELATIONS ARE LIKELY TO HAVE AN HR
STRATEGY THAT PLACES A HIGH VALUE ON EMPLOYEES AS STAKEHOLDERS IN THE
BUSINESS
 EFFECTIVE EMPLOYEE RELATIONS REQUIRE COOPERATION BETWEEN MANAGERS
AND EMPLOYEE RELATION REPRESENTATIVES (MEMBERS OF THE HR
DEPARTMENT) WHO ENSURES THAT COMPANY POLICIES ARE FOLLOWED AND
CONSULT WITH BOTH SUPERVISORS AND EMPLOYEES ON SPECIFIC EMPLOYEE
RELATION PROBLEMS.
TO FOSTER GOOD EMPLOYEE RELATIONS, MANAGERS MUST :
– LISTEN TO AND UNDERSTAND WHAT EMPLOYEES ARE SAYING AND EXPERIENCING
– KEEP THEM INFORMED ABOUT WHAT MANAGEMENT PLAN TO DO WITH THE
BUSINESS.
– TELL THEM HOW THOSE PLANS MAY AFFECT THEIR JOBS
– GIVE EMPLOYEES THE FREEDOM TO AIR GRIEVANCES ABOUT MANAGEMENT
DECISION.
– DEVELOP EMPLOYEE COMMUNICATIONS.
 
THE KEY TO A GOOD EMPLOYEE RELATIONS PROGRAM IS A
COMMUNICATION CHANNEL THAT GIVES EMPLOYEES ACCESS TO
IMPORTANT INFORMATION AND AN OPPORTUNITY TO EXPRESS THEIR
IDEAS AND FEELINGS. COMMUNICATION CHANNELS : WEBSITE, E-MAIL,
NEWS LETTERS, INTEL, WALKING AROUND AND TALKING TO EMPLOYEES
INFORMALLY, TELECONFERENCING, VOICE MAIL, EMPLOYEE FEEDBACK
PROGRAM, EMPLOYEE ASSISTANCE PROGRAMS, EMPLOYEE
RECOGNITION PROGRAMS.
 THE COMMUNICATION PROCESS WITHIN AN ORGANIZATION
 EMPLOYEE SAFETY AND HEALTH
(Dessler, Gary, 2011 : 608 – 643)

• WHY SAFETY IS IMPORTANT

• THE STAGGERING NUMBER OF WORK-RELATED ACCIDENTS
(IN USA, 5.500 WORKERS DIED AND 4.4 MILLION
OCCUPTIONAL INJURIES AND ILLNESSES RESULTING FROM
ACCIDENTS AT WORK.
=> DIRECT AND INDERECT COSTS, AND THE LEGAL
IMPLICATIONS.
• WHAT CAUSES ACCIDENTS ?
UNSAFE CONDITIONS : THE MECHANICAL AND PHYSICAL
CONDITIONS THAT CAUSE ACCIDENTS :
• IMPROPERLY GUARDED EQUIPMENT
• DEFECTIVE EQUIPMENT
• HAZARDOUS PROCEDURES IN, ON, OR AROUND
MACHINES OR EQUIPMENT
• UNSAFE STORAGE – CONGESTION, OVERLOADING
• IMPROPER ILLUMINATION – GLARE, INSUFFICIENT LIGHT
• IMPROPER VENTILATION – INSUFFICIENT AIR CHANGE,
IMPURE AIR SOURCE
• HOW TO PREVENT ACCIDENTS.
INDUSTRIAL RELATIONS
(Stone, Raymond 2008 : 543 – 578)
THE CHANGING ROLE AND INCREASING
ACCEPTANCE OF HRM HAS IMPLICATION FOR
INDUSTRIAL RELATIONS (IR) ACADEMIC AND
PRACTITIONERS AS WELL AS FOR HUMAN
RESOURCE MANAGERS.
THE EMPHASES ON THE STRATEGIC INTEGRATION OF
HIGH- PERFORMANCE HR POLICIES AND PRACTICES,
UNDERPINNED BY A PHILOSOPHY OF EMPLOYEES AS
ASSETS, HAS PROMOTED HRM AS BUSINESS-
ORIENTED, OPTIMISTIC AND LIBERATING.
APPROACHES TO INDUSTRIAL RELATIONS

UNITARIST APPROACH TO INDUSTRIAL RELATIONS IS GROUNDED

IN MUTUAL COOPERATION, INDIVIDUAL TREATMENT, TEAMWORK
AND THE SHARING OF COMMON OBJECTIVES. TRADE UNIONS ARE
REGARDED AS COMPETITORS FOR THE EMPLOYEE’S
COMMITMENT AND COOPERATION
PLURALIST APPROCH REGARDS CONFLICT AS INEVITABLE BECAUSE
EMPLOYERS AND EMPLOYEES HAVE CONFLICTING INTERESTS.
TRADE UNIONS ARE SEEN AS A LEGITIMATE COUNTER TO
MANAGEMENT AUTHORITY
MARXIST APPROACH SEES INDUSTRIAL CONFLICT AS AN ASPECT
OF CLASS CONFLICT THE SOLUTION TO WORKER ALIGNATION AND
EXPLOITATION IS THE OVERTROW OF THE CAPITALIST SYSTEM
PARTIES IN INDUSTRIAL RELATIONS

INDUSTRIAL RELATIONS INVOLVES EMPLOYEES AND THEIR UNIONS,

EMPLOYERS AND THEIR ASSOCIATION, AND GOVERNMENTS AND THE
INDUSTRIAL TRIBUNALS THAT MAKE REGULATIONS GOVERNING THE
EMPLOYMENT RELATIONSHIP.
ARBITRATIONS : THE SUBMISSION OF A DISPUTE TO A THIRD
PARTY FOR A BINDING DECISION
AWARDS : WRITTEN DETERMINATIONS SETTING OUT THE
LEGALLY ENFORCEABLE TERMS AND CONDITIONS OF
EMPLOYMENT IN A FIRM OR INDUSTRY
INDUSTRIAL TRIBUNALS : GOVERNMENTS TRIBUNALS CHARGED
WITH PREVENTING AND SETTLING INDUSTRIAL DISPUTES
EMPLOYER ASSOCIATION : REPRESENT EMPLOYER INTERESTS AT
INDUSTRIAL TRIBUNALS AND PROVIDE A RANGE OF I. R.
ADVISORY SERVICES, INCLUDING AWARD INTERPRETATION,
DISPUTE HANDLING AND HOW TO COUNTER UNION ACTIVITY.
TRADE UNIONS : FORMAL ORGANIZATIONS THAT REPRESENT
INDIVIDUALS EMPLOYED IN AN ORGANIZATION, THROUGHOUT
AN INDUSTRY OR IN AN ACCUPATION
 EMPLOYEE SEPARATION AND RETENTION MANAGEMENT

• ORGANIZATION CAN EXPECT CONTINUING PRESSURE TO CHANGE AND ADAPT,

SOCIETAL CHANGES AFFECTING LIFESTYLES, TECHNOLOGY, AND THE ECONOMY
CREATE THREATS AND OPPORTUNITIES FOR NEARLY ALL ORGANIZATIONS
• CONTEMPORARY ORGANIZATIONS THAT WISH TO REMAIN COMPETITIVE NEED
TO BE FLEXIBLE AND RESPONSIVE TO THEIR ENVIRONMENTS. THEY MUST
DEVELOP WAYS TO DEAL WITH :
‒ INCREASING SKILL OBSOLESCENCE AMONG THEIR EMPLOYEES AND THE LABOR
MARKET IN GENERAL
‒ CONSIDER ALTERNATIVE FORMS OF ORGANIZATION STRUCTURE DUE TO
DOWNSIZING OPERATIONS, SELLING OFF SUBSIDIRRIES, MERGER AND
ACQUISITION OPTIONS.
‒ EMPLOYEES TODAY SPEND LESS TIME WITH INDIVIDUAL EMPLOYERS.
PERSONAL LIFESTYLE DECISIONS. OPPORTUNITIES WITH OTHER
ORGANIZATIONS, AND ENTREPRENEURIAL MOTIVATIONS ARE CAUSING MANY
EMPLOYEES TO LEAVE THEIR ORGANIZATIONS.
• THE PRESSURE TO REMAIN COMPETITIVE AND EFFICIENT – COUPLED
WITH THE FACT THAT EMPLOYEES ARE LESS COMMITTED TO INDIVIDUAL
EMPLOYERS MAKES THE PROCESS OF EMPLOYEE SEPARATION A KEY
STRATEGIC ISSUE FOR ORGANIZATIONS :
• AN EFFECTIVE HR STRATEGY INVOLVES MANAGING THE PROCESS BY
WHICH EMPLOYEES LEAVE THE ORGANIZATION, TO ENSURE THAT :
‒ TRANSITIONS ARE SMOOTH FOR BOTH EMPLOYERS AND EMPLOYEES,
‒ OPERATIONS ARE NOT DISRUPTED
‒ IMPORTANT PROFESSIONAL RELATIONSHIPS ARE NOT DAMAGED
• THREE MAJOR WAYS THAT EMPLOYEES LEAVE THE ORGANIZATION,
THROUGH :
‒ REDUCTION OF FORCE (INITIATED BY THE EMPLOYER)
‒ TURNOVER (INITIATED BY EITHER THE EMPLOYER OR EMPLOYEE)
‒ RETIREMENT
ORGANIZATIONS SHOULD HAVE STRATEGIES FOR MANAGING EACH FORM
OF SEPARATION.
REDUCTIONS IN FORCE
• REDUCTIONS IN FORCE/EMPLOYEE LAYOFFS ARE ATTEMPTS BY EMPLOYERS TO
RECONFIGURE THEIR WORKFORCE, OFTEN CAUSED BY ORGANIZATIONAL
RESTRUCTURING FOLLOWING MERGER OR ACQUISITION ACTIVITY, OR TO
MAKE AN ORGANIZATION MORE COMPETITIVE BY REDUCING COSTS.
• THREE MAIN REASONS : INEFFECTIVITY, LACK OF ADAPTABILITY IN THE
MARKETPLACE, AND A WEAKENED COMPETITIVE POSITION WITHIN THE
INDUSTRY
• REDUCTIONS IN FORCE => REDUCING COSTS (LABOR COSTS ARE USUALLY THE
LARGEST EXPENSES) => REDUCING PRICE => STRENGTHEN THE COMPETITIVE
POSITION.
• EMPLOYERS WHO CONDUCT LAYOFFS OFTEN PROVIDE AFFECTED EMPLOYEES :
‒ 60 DAYS NOTICE AND IMMEDIATELY RELIEVE THEM OF THEIR JOB DUTIES
‒ REMAIN ON THE PAYROLL FOR TWO MONTHS BUT ARE ABLE TO USE THE
TWO-MONTH PERIOD TO ADJUST, SEEK NEW EMPLOYMENT, AND
TRANSITION OUT OF THE ORGANIZATION.
• TO FACILITATE THE TRANSTION, MANY ORGANIZATIONS IMPLEMENT
OUTPLACEMENT PROGRAMS/SERVICES, WHICH MAY BE CONDUCTED IN-HOUSE
OR CONTRACTED TO AN EXTERNAL VENDORS; IT ASSISTS NOT ONLY WITH HELPING
LAID-OFF EMPLOYEES LAND ON THEIR FEET BUT ALSO SERVE AS A PUBLIC
RELATION TOOL : THESE SERVICES HELP TO RETAIN THE SUPPORT AND GOODWILL
OF REMAINING EMPLOYEES BY MAKING THEM FEEL THAT THE ORGANIZATION
WILL LOOK OUT FOR THEM IF FUTURE REDUCTIONS ARE NECESSARY.
• LAYOFFS CAN SOMETIMES BE AVOIDED THROUGH PROPER STRATEGIC HUMAN
RESOURCE PLANNING; THE MAIN BENEFIT IS TO ENSURE THAT SUPPLY AND
DEMAND OF EMPLOYEES ARE EQUATED WHILE AVOIDING THE COSTS ASSOCIATED
WITH SEVERE OVERSTAFFING AND UNDERSTAFFING.
‒ LONGER- RANGE SURPLUSES/OVERSTAFFING CAN BE MANAGED WITHOUT
THE NEED FOR LAYOFFS BY UTILIZING HIRING FREEZES, NOT REPLACING
DEPARTING EMPLOYEES, OFFERING EARLY RETIREMENT INCENTIVES, OR
CROSS – TRAINING OF CERTAIN EMPLOYEES TO ALLOW THEM TO DEVELOP
SKILLS THAT THE ORGANIZATION ANTICIPATES NEEDING
‒ SHORT-RUN SURPLUSES/OVERSTAFFING CAN BE MANAGED THROUGH
LOANING OR SUBCONTRACTING EMPLOYEES, OFFERING VOLUNTARY LEAVES,
IMPLEMENTING ACROSS-THE-BOARD SALARY REDUCTIONS, OR REDEPLOYING
WORKERS TO OTHER FUNCTIONS, SITES, OR UNITS.
 
STRATEGIES FOR MANAGING EMPLOYEE
SURPLUSES AND AVOIDING LAYOFFS.
• AS PART OF ANY LAYOFF PLAN, THE ORGANIZATION ALSO NEEDS
TO DEVELOP AN APPROPRIATE STRATEGY FOR MANAGING THE
SURVIVORS, TO ENSURE THAT THE RETAINED EMPLOYEES CAN
ADJUST TO THE CHANGES. THESE INDIVIDUALS MAY FEEL :
‒ LESS SECURE ABOUT THE JOBS THEY HAVE RETAINED ;
‒ BE ASKED TO PERFORM MORE WORK THAN PREVIOUSLY
WITHOUT A CORRESPONDING INCREASE IN PAY;
‒ HAVE LOST LONG-TERM FRIENDS AND COWORKERS;
‒ MAY HAVE DEMAGED MORALE AND FEAR THAT THEY ARE
VULNERABLE TO FUTURE LAYOFFS.
CONSEQUENTLY, THEY MAY BE LESS LOYAL TO THE EMPLOYER AND
HAVE STRONG INCENTIVES TO LEAVE THE ORGANIZATION. THE
ORGANIZATION NEEDS A SEPARATE STRATEGY IN ADDITION TO ITS
LAYOFF STRATEGY TO ENSURE THAT THESE RETAINED EMPLOYEES
REMAIN COMMITTED, LOYAL HIGH PERFORMER.
TURNOVER
• EMPLOYEES WHO LEAVE THE ORGANIZATION AT THE ORGANIZATION REQUEST
(INVOLUNTARY TURNOVER) AS WELL AS THOSE WHO LEAVE ON THEIR OWN INITIATIVE
(VOLUNTARY TURNOVER) CAN CAUSE DISRUPTIONS IN OPERATIONS, WORK TEAM
DYNAMICS, AND UNIT PERFORMANCE => CREATE COSTS FOR THE ORGANIZATION.
• COST OF TURNOVER INCLUDE : THE DIRECT ECONOMIC COSTS OF STAFFING AND
TRAINING NEW HIRES AS WELL AS THE INDIRECT COSTS OF THE DOWNTIME NEEDED
FOR THE NEW EMPLOYEE TO GAIN PROFICIENCY IN HIS OR HER JOB AND TO BECOME
FULLY SOCIALIZED AND INTEGRATED INTO THE ORGANIZATION.
‒ THOSE RESPONSIBLE FOR TRAINING THE NEW EMPLOYEE ARE PULLED AWAY FROM
THEIR REGULAR JOB RESPONSIBILITIES.
‒ IF AN ORGANIZATION HAS MADE SIGNIFICANT INVESTMENT IN TRAINING AND
DEVELOPING ITS EMPLOYEES, THAT INVESTMENT IS LOST WHEN EMPLOYEES LEAVE.
‒ EXESSIVE TURNOVER CAN IMPACT THE MORALE OF EMPLOYEES AND THE
ORGANIZATION’S REPUTATION AS BEING A GOOD PLACE TO WORK, WHICH MAKES
RETENTION AND RECRUITMENT MORE CHALLENGING AND TIME- CONSUMING.
• TURNOVER CAN BE BENEFICIAL :
‒ ALLOW THE ORGANIZATION TO HIRE NEW EMPLOYEES WITH MORE
CURRENT TRAINING WHO ARE NOT LOCKED INTO EXISTING WAYS OF
DOING THINGS.
‒ FRESH IDEAS FROM OUTSIDERS CAN BE CRITICAL TO ORGANIZATION
THAT HAVE BECOME STAGNANT AND IN NEED OF INNOVATION
‒ LOWER THE AVERAGE TENURE OF EMPLOYEES AND TRANSLATE INTO
LOWER PAYROLL EXPENSES.
‒ AFFORDS OPPORTUNITIES TO PROMOTE TALENTED, HIGH
PERFORMERS
‒ WHEN POOR PERFORMERS OR DISRUPTIVE EMPLOYEES LEAVE THE
ORGANIZATION, MORALE CAN IMPROVE AMONG WORKERS.
RETIREMENT
• BECAUSE MEDICAL ADVANCES ARE ALLOWING INDIVIDUALS TO LIVE LONGER AND STAY
HEALTHEIR LONGER, OLDER WORKERS ARE MAINTAINING A STRONG AND INCREASED PRESENCE
IN THE WORKFORCE. I RONICALLY, HOWEVER, MANY OLDER WORKERS TEND TO BE SET IN THEIR
WAYS AND RESISTANT TO CHANGE, PARTICULARLY TO TECHNOLOGICAL CHANGE.
• EMPLOYERS HAVE A DISTINST CHALLENGE IN FINDING WAYS TO KEEP OLDER WORKERS
MOTIVATED AND PRODUCTIVE AND ENSURING THAT THEY DO NOT VIOLATE THE LEGAL RIGHTS
OF THESE EMPLOYEES.
• WHEN OLDER WORKERS RETIRE, THE ORGANIZATION CAN HIRE NEW EMPLOYEES TO REPLACE;
THESE NEW EMPLOYEES MAY COST LESS THAN THE OLDER WORKERS RELATIVE TO SALARIES
AND HEALTH INSURANCE PREMIUM.
• PROMOTION OPPORTUNITIES MAY BE MADE AVAILABLE WHEN THEY RETIRE.
• SIGNIFICANT COSTS ARE OFTEN ASSOCIATED WITH RETIREMENT.
• RETIREES WHO HAVE WORKED FOR THE ORGANIZATION FOR MANY YEARS USUALLY HAVE A
WEALTH OF KNOWLEDGE ABOUT THE INDUSTRY AND THE MARKET PLACE. THEY ALSO HAVE
EXTENSIVE HISTORICAL KNOWLEDGE ABOUT THE ORGANIZATION AND EXPERIENCE WITH
ORGANIZATIONAL PROCESSES, POLITICS, AND CULTURE.
• ALTHOUGH FRESH IDEAS FROM OUTSIDERS CAN BE CRITICAL TO AN ORGANIZATION,
KNOWLEDGE AND EXEPERIENCE CAN BE EQUALLY IMPORTANT, AND DECISION-MAKERS NEED TO
ENSURE THAT THE ORGANIZATION CAPITALIZES ON BOTH TO ASSIST IN MEETING THE
OBJECTIVES. THE CHALLENGE : HOW TO MAXIMIZE THE BENEFITS OF RETIREMENT WHILE
SIMULTANEOUSLY MINIMIZING THE COSTS.
• EMPLOYERS CAN DEVELOP PROGRAMS TO GIVE OLDER EMPLOYERS
INCENTIVES TO RETIRE OR TO TAKE EARLY RETIREMENT AS LONG AS
EMP0LOYEES ARE NOT COERCED INTO DOING SO.
• WHEN OLDER EMPLOYEES RETIRE, THE ORGANIZATION CAN LOSE A
GREAT WEALTH OF KNOWLEDGE AND EXPERTISE. TO REMEDY THIS,
MANY EMPLOYERS REHIRE RETIRES ON A PART-TIME OR
CONSULTING BASIS. STRATEGIC MANAGEMENT OF THE RETIREMENT
PROCESS RESULTS IN EVERYONE WINNING :
‒ RETIREES GAIN THE BEST OF BOTH WORLDS
‒ THE ORGANIZATION RETAINS THEIR KNOWLEDGE AND
EXPERIENCE BASE
‒ EXISTING EMPLOYEES ARE AFFORDED OPPORTUNITIES TO BE
PROMOTED
‒ NEW EMPLOYEES MAY BE HIRED AND LEARN FROM THE
EXPERIENCES AND KNOWLEDGE BASES OF SEASONED VETERANS.
ANALISIS SWOT SUMBER DAYA MANUSIA
 PILIHAN JUDUL MAKALAH/PAPER
MATA KULIAH : MSDM STRATEGIK
DOSEN : PROF. DR. ISMUHADJAR, SE, MM

1. GARIS BESAR MANAJEMEN SUMBER DAYA MANUSIA DENGAN

BERBAGAI ASPEKNYA
2. MANAJEMEN SUMBER DAYA MANUSIA STRATEGIS DAN PERANANNYA
DALAM MANAJEMEN STRATEGIK
3. DESAIN DAN REDESAIN SISTEM KERJA
4. JOB ANALYSIS, JOB DESCRIPTION DAN JOB SPECIFICATION
5. PENGEMBANGAN SUMBER DAYA MANUSIA
6. MANAJEMEN KINERJA
7. KOMPENSASI
8. LABOR AND INDUSTRIAL RELATION
9. EMPLOYEE SEPARATION
CATATAN :
1. Bentuk 5 (lima) kelompok penulisan makalah; setiap kelompok terdiri dari 2
sampai 3 mahasiswa
2. Setiap kelompok memilih satu judul makalah untuk diproses penulisannya.
Pilihan judul untuk masing-masing kelompok harus berbeda
3. Makalah mencakup :
‒ Judul Makalah
‒ Kata Pengantar
‒ Daftar Isi
‒ Pendahuluan
‒ Teori
‒ Kesimpulan
‒ Daftar Pustaka (minimal 3 text book, 2 jurnal dan 1 internet)
4. Minimal 20 halaman untuk Pendahuluan, Teori dan Kesimpulan
5. Setiap makalah dibuat rangkap 6 (enam)
‒ 1 eksemplar untuk dosen
‒ 5 eksemplar dibagikan ke masing-masing kelompok