Training on

Human Resource Management

For Employees’ of

Hidar 1-5/2012
Addis Ababa, Ethiopia
 Climate Setting
 Introduction
 Setting norms
 Time management
 Reporters
 Energizing team
 Expectations
 Introduction
1. Name
2. Position
3. Educational background
4. Work experience
5. What you like most?
6. What you hate most?
7. Future plan
8. What do you expect from this training?

4
 1. Yoseph Woubalem

BA, MA, Ph.D. Candidate

CERTIFIED MANAGEMENT CONSULTANT
HDP LICENSE in HIGHER EDUCATION
CONSULTANT at SUPER CONSULT Plc.
ASSOCIATE CONSULTANT at EMI
Experience in Consultancy, Research, Teaching and
Practitioner
 2. Temesgen Dagne
Ph.D., MBA, MCom, PGDHRM, PGDIM, PGDIBO,
BSc, DIM, CPMS, CLM, AFP
Assistant Professor, Researcher and Trainer
Consultant at Super Consult Plc
Associate consultant at Ethiopian Management Institute
Project advisor of FNV the Netherlands in Ethiopia
Trainer at Addis Chamber Training Institute
 Ground Rules
 Everyone is equal.
 Be punctual when returning from breaks.
 One person speaks at a time, no side talking or
interrupting.
 Respect confidentiality.
 Respect other people’s thoughts and opinions (but
challenge each other to think more deeply) .
 Training Rules … cont’d

 Mobiles silent or switch off!

 Ask questions anytime!

 Bring good mood!

 Time manager
1.
 Training Schedule
Activities Duration Minutes
Morning Session I 2:30 – 4:00 90 minutes
Tea break 4:00 – 4:30 30 minutes
Morning Session II 4:30 – 6:00 90 minutes
Lunch Break 6:00 – 7:30 90 minutes
Afternoon Session I 7:30 – 9:00 90 minutes
Tea break 9:00 – 9:30 30 minutes
Afternoon Session II 9:30 – 11:00 90 minutes

10
 Reporters
1. 2nd day:
2. 3rd day:
3. 4th day:
4. 5th day:
 Team members:
1.
2.
 Objectives of the Training
Upon completion of this training, trainees will be able to:
 Explain the purpose of human resource management;
 Describe the main reasons for conducting job analysis;
 Recognize the impact of human resource planning on
effective utilization of employees;
 Distinguish between recruitment and selection;
 Explain the roles of training and management development
in improving employees performance; and
 Recognize the different ways in which employees
performance can be valued.
 Contents

1. Introduction to HRM

2. Job Analysis and HRP

3. Recruitment and Selection

4. Training and Development

5. Compensation and Benefit Admin.

 Mode of delivery

 Brainstorming
 Lecture
 Individual reflection
 Group discussions
 Group presentation
 This is the Mindset…

Teach you, KO N73 30 54.6 7 13 -J A N-8 3 GL

and you will forget

Show you,
and you may remember
Involve you,
and you will understand

Your participation is the Encourage you to share,

key element! and you will retain
16 16
 Learning Pyramid: what’s been remembered three days later.

17
 Learners retain...
 90% of what they learn when they teach someone else/use
immediately.
 75% of what they learn when they practice what they
learned.
 50% of what they learn when engaged in a group
discussion.
 30% of what they learn when they see a demonstration.
 20% of what they learn from audio-visual.
 10% of what they learn when they've learned from reading.
 5% of what they learn when they've learned from a lecture.
Pre Training Test
 Questions to ponder

1. Write the mission, vision, values and motto of Attorney

General.

2. Write the mission, vision and values of your office.

3. Write at least 3 objectives of your office.

4. What will be your Human Resource Management

Legacy?
 Unit 1
Introduction to Human Resource Mgt.
 1.1 Concept of HRM … Cont’d

Resources of Organizations
1. Physical Resources
 Technology, plant, equipment, location, access to raw material
2. Financial Resources
3. Human capital
 Training, expertise, judgment, intelligence, relationships and
insights of managers and workers
4. Organizational capital
 Organizational structure, planning, controlling and coordinating
systems, informal relations among groups within the firm and
with outside groups
5. Information and Knowhow
6. Networking
7. Legal Resources
8. Entrepreneurship
 1.1 Concept of HRM … Cont’d
HRM- two terms: Human Resource and Management
Human Resources

 the total sum of all the inborn abilities, acquired

knowledge and skill.
 is concerned with the human being aspect in
organizations.
 most important resources of organizations.

 is resource that makes use of all other resources.

 1.1 Concept of HRM … Cont’d
 Management is defined as the process of reaching
goals through efficient utilization of human,
financial, material and informational resources.
 Management refers to the process of achieving
organizational objectives with and through the effort
of people and other resources.
 Among all these resources, human resource is the
most important and fundamental resource for an
organization. Why?
 1.1 Concept of HRM … Cont’d
Because:
 It is the major cost of running the organization (40-60% of the
total cost).
 Unlike other resources, human resource require fairness,
justice and equity.
 It make decision over efficient utilizations of other resources.
 Organizational activities require human efforts and
capabilities.
 Organizations depend on performance of people for achieving
its mission and goals.
 1.1 Concept of HRM … Cont’d
Definition of HRM
 It is the strategic and coherent approach to the
management of an organization's most valued assets -
the people working individually and collectively and
contribute to the achievement of the objectives of the
organization.
 It deals with employing people, developing their
resources, utilizing, maintaining and compensating their
services in tune with the job and organizational
requirement.
 1.1 Concept of HRM … Cont’d
 It is the process of achieving organizational goals
by attracting, developing and retaining human
resource.
 People become HRs only when they acquire
competencies, such as knowledge, skills, attitudes,
experiences and potential for growth.
 1.1 Concept of HRM … Cont’d
Acquisition/Attracting
 Human resources planning: determining the firm’s human
resource needs.
 Job analysis: determining the exact nature
of the positions to be filled.
 Recruiting: attracting people to apply for positions in the
firm.
 Selection: choosing and hiring the most qualified applicants.
 Orientation: acquainting new employees with the firm.
 1.1 Concept of HRM … Cont’d
 Maintaining
 Employee relations: increasing employees’ job satisfaction
through satisfaction surveys, communication programs, exit
interviews, and fair treatment.
 Compensation: rewarding employee effort through monetary
payments.
 Benefits: providing rewards to ensure employee well-being.
 Development
 Training and development: teaching employees new skills,
new jobs, and more effective ways of doing their present jobs.
 Performance appraisal: assessing employees’ current and
potential performance levels.
 Human Resources as a Core Competency

 Strategic Human Resources Management

 Organizational use of employees to gain or keep a

competitive advantage against competitors.
 Core Competency

 A unique capability in the organization that

creates high value and that differentiates the
organization from its competition.
Possible HR Areas for Core Competencies
 HR-Based Core Competencies
Organizational Culture
• The shared values and beliefs of the workforce
Productivity
• A measure of the quantity and quality of work
done, considering the cost of the resources used.
• A ratio of the inputs and outputs that indicates
the value added by an organization.
Quality Products and Services
• High quality products and services are the results
of HR-enhancements to organizational
performance.
Customer Service Dimensions
 1.2. Nature and Functions of HRM
Nature of HRM:
 pervasive/all encompassing;
 focuses on results;
 develops employees potential;
 encourages employees;
 all about people at work;
 put people on assigned jobs;
 builds and maintains cordial relations;
 multi-disciplinary.
 Nature and Functions … cont’d

Functions of HRM:
1. HR Planning;
2. Job analysis and Design;
3. Recruitment and Selection;
4. Orientation and Placement;
5. Training and Development;
6. Performance Appraisal and Job Evaluation;
7. Employee Remuneration;
8. Motivation and Communication;
9. Safety and Health;
10. Promotion, Transfers, Demotions and Separations;
11. Industrial Relations;
12. Human Resource Research.
 1.3. Objectives of HRM

 help the organization reach its goals;

 ensure effective utilization and development of
HR;
 ensure respect for human beings;
 ensure reconciliation of individual goals with those
of the organization;
 1.3. Objectives of HRM … cont’d

 achieve and maintain high morale among

employees;
 increase to the fullest the employee's job satisfaction
and self-actualization;
 develop and maintain a quality of work life;
 be ethically and socially responsive to the needs of
society;
 inculcate the sense of team spirit, team work and
inter-team collaboration (synergy).
 1.3. Objectives of HRM … cont’d
In brief the objectives of HRM are:

1. Providing qualified, well-trained employees for the

organization.

2. Maximizing employee effectiveness in the

organization.

3. Satisfying individual employee needs through

monetary compensation, benefits, opportunities to
advance, and job satisfaction.
 1.4 HRM as a System

INPUTS PROCESSING OUTPUTS

 Human 1. Acquisition  Goals

competencies 2. Development achievement
 Organization plan
3. Motivation (Services
 Human resource plan
 Job analysis 4. Maintenance and /or
 Labor market Products)

Feedback
 1.5. Traditional HRM Vs. Contemporary HRM
Dimension Traditional Contemporary
1. Shared interests Interests of the organization Mutuality of interests
are uppermost

2. Respect for Labour is treated as a tool People are treated as

employees which is expendable and assets to be used for the
replaceable benefit of an organization,
its employees and society
as a whole

3. Focus of attention for Personnel procedures Flexibility is more

interventions important than the system

4. Job design A command and control mgt A team-based mgt system

hierarchy
5. Pay Fixed grades Performance related
 Unit 2
The Environment of HRM
 2.1. HRM Environment
EXTERNAL ENVIRONMENT
Legal Considerations INTERNAL ENVIRONMENT Labour Force

Human Resource
The Economy

e
Marketing Operations

g c
Staffing

nin ur
an so

H u eve
Pl Re

ma lo
D
n
ma

n R pm
Hu

Society
e s e nt
Human

ou
Em o r R

Resource
La

rc
e
b
plo ela

Management
Technology

ye tio

ef i n
en tio
e a ns

ts
d B sa
nd

an pen
Other
m
Finance Safety and Co Functional
Health Areas

Customers Competition Shareholders Unions

 2.2 The Internal Environment
 Mission
• Mission is the organization's purpose or
fundamental reason for its existence.
 Policies
• a predetermined guide established to provide
direction in decision-making.
 Organizational Culture
• Culture is the system of shared values, beliefs, and
habit within an organization that interacts with the
formal structure to produce behavioral norms
 2.3 The External Environment
 The general environment and
 Task environment
I. The General Environment
 Consists of broad dimensions and forces in the surrounding
environment, which provides opportunities and pose threats to
the organization.
 Political-legal Environment
 Economic Environment
 Socio-cultural Environment
 Technological Environment
 Physical Environment
 I. The General Environment… cont’d
Discrimination
When someone is denied a job or position for non job
related reasons
Equal Employment Opportunity
The right to employment and advancement without
regard to race, religion, sex, color or national origin
Affirmative Action
An effort to give preference in employment to women
or other minorities
Comparable Worth
Persons performing jobs of similar worth should receive
comparable pay
Bona-fide Occupational Qualifications
Employment criteria justified by capacity to perform a
job
 Other Employment Legislation
Employment standards
Basic or minimum employment conditions in an
organization
Minimum wage, hours of work, OT pay
Health and safety
Healthy and Safe work Environment
On the Job Injuries
Labour relations
Relationship between union and employer
Not all organizations are covered by Labour
Relations
 II. The Task Environment
(Customers, Suppliers, Labor market, Regulators,
Competitors)
 Customers

 People who actually use firm’s goods and services.

 Management has task of ensuring its employment
practices do not antagonize members of market it
serves.
 Workforce should be capable of providing top-
quality goods and services.
 Competition

 Firms may face intense competition in both their

product or service and labor markets.
 Must maintain a supply of competent employees
 Bidding war often results.
 Competitors: Effort Does it

 A man bought a racehorse and put him in barn with a

big sign, “ The fastest horse in the world” but nothing
else.
 He came in a race and it came last.
 The owner quickly changed the sign to: “ The fastest
world for the horse’.
 Summary

 Organizations operate in a dynamic and changing

environment
 Internal environment vs. External environment
 Integrating the various parts of the system with the
organizational internal environment and by
developing a fit with its external environment.
 Unit 3
Job Analysis
 3.1 Job Analysis Terminologies
Task: is the smallest units of analysis or identifiable
work activities composed of motions. E.g. receiving
telephone call
Duty: a larger work segments composed of several tasks
performed by an individual.
Position: the responsibilities and duties performed by
one person. There are as many positions in an
organization as there are employees.
E.g.: all tasks done by a computer operator or
secretary.
Job: many positions, all with the same basic tasks and
with several people performing them.
 3.1 Terminologies …. Cont’d
Note:
 Job may require a service of one or more persons

Example:
 University president--- service of one person

 Accounting clerks--- service of more than one person

 HR manager --- service of one person

 Position requires the service of only one person

 3.2 What is Job Analysis?
 Systematic procedure for gathering, documenting,
and analyzing information about the content,
context, and requirements of the job.
 Identifies the competencies/KSAs directly related to
performance on the job.
 Demonstrates a clear relationship between the duties
of the job and the competencies/KSAs required to
perform those duties.
 Competencies and KSAs serve the same function in
the job analysis process.
 Forms the basis of valid and effective applicant
assessment tools.
 3.2 What is Job Analysis? … cont’d
 Job analysis is a systematic process of determining
tasks, duties and responsibilities that make up the
job and the qualification (skill, knowledge,
experience) required to perform the job.
 It specifies the resources used to do the job, the
conditions under which the job is performed and the
factors needed to evaluate candidates for the position.
 3.3 Timing of job analysis

Job analysis is conducted on following different

occasions. These are:
 when the organization is founded (established).
 when new jobs are created.
 when jobs are changed significantly as a result of new
technology.
 anytime a position is advertised.
 where job openings in the same occupation recur
frequently, you may use a previously developed job
analysis.
 3.4 Importance of Job Analysis
 By systematically examining what the job entails,
you can identify the key competencies/KSAs
necessary for successful performance on the job.
 Once key KSAs are identified, valid and effective
selection tools can be developed to identify and
attract highly qualified candidates for the job.
 Job analysis can be used to determine:
Job requirements;
Training needs;
Other personnel actions such as promotions and
performance appraisals.
3.5 Outputs of job analysis

Job Analysis

Job description

Job Specification

Job Standards

Job Evaluation
 3.5 Outputs of job analysis … cont’d

1. Job description: is a written statement that explains the

title, duties, responsibilities, authority, accountabilities,
working conditions, conditions of employment and other
aspects of a specified job (what the worker does).
Uses of job description:
 It describes the job to the recruiters
 It guides newly hired employees about what they
are expected to perform.
 It is used for appraising whether the actual activities
of the employees match with their stated duties.
 3.5 Outputs of job analysis … cont’d
2. Job specification/Person specification: is a written
statement that describes the skill, knowledge, work
experiences required to perform the job (who the
worker is).
Uses of Job specification:
 It sets minimum qualifications needed in potential
candidates
 It guides selectors to choose candidates with right
qualifications
 3.5 Outputs of job analysis … cont’d

3. Job Performance Standard

 It is a statement that indicates quality and quantity of job
performance.
Standards are statement of the acceptable and attainable
levels of achievement on a particular job.
Use of Job performance standards:
 Motivation: standards becomes objectives or targets for
employee efforts. Once standards are met, workers may feel
a sense of accomplishment
 Performance Evaluation: Standards are criteria against
which job success is measured.
 Improve the performance of employees
 3.5 Outputs of job analysis … cont’d
4. Job Evaluation
The process of determining the relative values of each
job in the organization and ranking them in a hierarchy
Use of job evaluation
 Provide information for developing a compensation
package
 It serves as a bases for fixing a fair and equitable
salary and wage structure
3.6 Job Analysis: A Basic Human Resource Management Tool

 HRP
Tasks Responsibilities Duties  Recruitment
 Selection
 T&D
 Performance Appraisal
Job  CBA
Descriptions
 Safety and Health
Job
Analysis  ELR
Job  Legal Considerations
Specifications
 Job Analysis for Teams

Knowledge Skills Abilities

 3.7. Steps in Job Analysis

A typical job analysis involves five steps (see figure below)

Examine the Select jobs Collect Prepare job Prepare job
overall to be data on description specification
organization analyzed jobs
 3.8 Types of Job Analysis Information
 Work Activities – work activities and processes; activity records (in film
form, for example); procedures used; personal responsibility
 Worker-oriented activities – human behaviors, such as physical actions
and communicating on the job; elemental motions for methods analysis;
personal job demands, such as energy expenditure
 Machines, tools, equipment, and work aids used
 Job-related tangibles and intangibles – knowledge dealt with or applied
(as in accounting); materials processed; products made or services
performed
 Work performance – error analysis; work standards; work measurements,
such as time taken for a task
 Job context – work schedule; financial and nonfinancial incentives;
physical working conditions; organizational and social contexts
 Personal requirements for the job – personal attributes such as
personality and interests; education and training required; work experience
 3.8 Types of Job Analysis Information

Sources of information for job analysis

 Employees,
 Supervisors,
 Independent Expert (outside consultant),
 Job Review Committee,
 Non-human sources
• old job description, specifications,
• Films of workers on the job, reports etc…)
 Hiring Manager,
 HR Professional, and
 Subject Matter Expert (SME).
 3.9. Methods of Collecting Job Analysis Information

The important methods used to collect job analysis

information are:
 Observation Method,
 Interview Method,
 Questionnaire Method and
 Diary Method
 Technical Conference Method
 3.10. Job Design
 Process of determining the specific tasks to be
performed, the methods used in performing these
tasks, and how the job relates to other work in the
organization
 Job design integrates work content (tasks, duties,
responsibilities and relationships), the
qualifications (SKAE), and the rewards (financial
and non-financial compensation) required for job in
a way that meets the needs of employees and the
organization.
 3.10 Job Design … Cont’d

Four major approaches:

1. Job simplification
2. Job rotation
3. Job enlargement, and
4. Job enrichment
 Types of Job Design (3)

Job Simplification Job Rotation Job Enlargement

Worker A Worker B Worker C Worker C Worker A Worker B Worker A

Task Task Task Task Task Task Task Task Task

1 2 3 1 2 3 1 2 3
 Designing Job Range:
Job Rotation and Job Enlargement
Job Rotation Job Enlargement
 Moving individuals from one 
Increasing the number of
job to another
 Individual completes more tasks for which an
job activities because each individual is responsible
job includes different tasks
 Involves increasing the range  Increases job range, but not
of jobs and the perception of depth
variety in job content
 Designing Job Depth: Job Enrichment

 The practice of increasing discretion individuals

can use to select activities and outcomes

 Increases job depth and accordingly fulfills growth

and autonomy needs

 Herzberg’s two-factor theory of motivation is the

impetus for designing job depth

 Designing Job Depth: Job Enrichment

 Managers can provide employees with greater

opportunities to exercise discretion by making the

following changes:
 Direct feedback
 New learning
 Scheduling
 Uniqueness
 Control over resources
 Job Designs: The Results of Job Analysis
 Job range
 Number of tasks a person is expected to perform
while doing a job
 The more tasks required, the greater the job
range
 Job depth
 Degree of influence or discretion that an
individual possesses to choose how a job will be
performed
 Job Depth and Range: Differences in
Selected Jobs

High
College professors College presidents

Business packaging machine mechanics Hospital chiefs of surgery

Business research scientists

Job depth

College instructors College department chairpersons

Hospital bookkeepers Hospital nurses

Business assembly-line workers Business maintenance repair workers

Low
Low High
Job range
 Job Designs: Job Relationships

 Determined by managers’ decisions regarding

departmentalization bases and spans of control
 The wider the span of control, the larger the group
and, consequently, the more difficult the
establishment of friendship and interest relationships
 The basis for departmentalization also impacts job
relationships
The Job Characteristics Model
 The Job Characteristics Model:
Job Dimensions
1. Skill variety (SV): the degree to which the job requires
different skills
2. Task identity (TI): the degree to which the job involves
completing a whole, identifiable piece of work rather than
simply a part
3. Task significance (TS): the extent to which the job has an
impact on other people, inside or outside the organization
4. Autonomy (AU): the extent to which the job allows
jobholders to exercise choice and discretion in their work
5. Feedback from the job (FB): the extent to which the job
itself (as opposed to other people) provides jobholders
with information on their performance
 Steps that management can take to increase core
job dimensions:
1. Combining task elements
2. Assigning whole pieces of work (i.e., work modules)
3. Allowing discretion in selection of work methods
4. Permitting self-paced control
5. Opening feedback channels
 Exercise

 Develop job description and job speciation for

a) Accountant
b) HR manager
c) HR expert
d) Office assistant
e) Training coordinator
f) Marketing Manager
 Format
1. Job Title:
2. Unit:
3. Job code:
4. Report to:
5. Job summary:
6. Duties and responsibilities:
7. Job specification:
a. Education
b.Experience
c. Training
 Recap
 An overview of HRM
 HR environment
 Job Analysis
Today
 HRP
 Recruitment and Selection
 Training and Development
 Unit 4
Human Resource Planning

“ If you fail to plan, you are planning to fail.”

 4.1 Concept of Human Resource Planning
What is Human Resource Planning?
 the process of systematically reviewing human
resource requirements to ensure that the required
number of employees, with the required skills, is
available when they are needed.
 It is a means of deciding the number and type of
personnel that organization needs now and in the
future.
 4.2. Importance of HRP
 Forces managers to think ahead
 Uncertainty Reduction
 Objectives achievement
 Environmental Adaptation
 Effective and Efficient Utilization of Human
Resources
 Human Resource Development
 Control
 4.2. Importance of HRP … cont’d
 HRP ensures that the organization has:

 Right Number

 Right Kind

 Right Place

 Right Time
 4.3. The Human Resource Planning Process
 The process of human resource planning involves the following five steps:

Step 1: Review
Organization vision, mission,
objectives and strategies

Step 2: Review
Human resource objectives and
strategies

Step 3: Assess Step 4: Forecast

current human
Make Comparison human resource needs
resources

Step 5: Develop and implement

human resource plans
 Correct/avoid HR surplus
 Correct/avoid HR shortage
 Outcomes of Human Resource Planning
Comparison
Comparisonof
ofdemand
demandand
andsupply
supply

Demand
Demandhigher
higher Supply
Supplylarger
largerthan
than Demand
Demandequal
equalto
to
than
thansupply
supply demand
demand supply
supply

Plan
Planfor
forworkforce
workforce
Plan
Planfor
forgrowth
growth Plan
Planfor
forstability
stability
reduction
reduction
Organisational Planning Process

Strategic Plan (5 yrs) Human Resource

Development Challenges

Succession
Business Plan (2-3 yrs) Planning

Individual Review
Branch Plan (1 yr) Professional (Ideal Case)
Development
And Training
Everybody Individual
Team Plan (1 yr) Needs Needs

Induction /
Review Orientation Organisational Job-Related
Individual Plan (1 yr) Key Tasks and Cultural Skills and
Development Plan Behaviours Knowledge
Review

Recruitment
Branch Team and Selection
Needs Needs

Organisational and Assessment

Cultural Definitions (Survey?)
 Steps of Human Resource Planning
1. Job analysis
2. Forecasting demand for labor within the
company, based on past human resource usage,
future organizational plans, and general
economic trends.
3. Forecasting the internal and external supply of
labor.
4. Matching demand with supply, and planning
how to most effectively manage projected
shortfalls and surpluses.
 Job Analysis
Systematic Review of Jobs Within a Firm

Job
Job Description
Description
Responsibilities
Responsibilities and
and working
working conditions,
conditions, plus
plus tools,
tools,
materials
materials and
and equipment
equipment to
to perform
perform the
the job
job

Job
Job Specification\requirement
Specification\requirement
Skills,
Skills, abilities,
abilities, and
and credentials\qualifications
credentials\qualifications
needed
needed toto perform
perform the
the job
job
 Forecasting Labor Supply
Internal Forecasting
 Replacement Charts
 Skills Inventories

External Forecasting
 State Employment Commissions
 Government Reports
 College Information
 Forecasting Labor Supply
 Forecasting the internal labor supply means determining the
number and type of employees who will be in the firm at some
future date.
 Management tools:
1. Replacement charts: List each key management position, who
occupies it, how long that person will likely stay in the job, and
who (by name) is qualified as a replacement.
2. Skills inventories: Computerized information systems
containing information about each employee’s education, work
experience, and career aspirations.
 Forecasting the external labor supply means determining the
number and type of employees who will be available for hiring
from the labor market at large. sources can help:
1. State employment commissions e.g. job centers.
2. Government reports
3. College information regarding enrollment in various majors
 Forecasting HR Supply and Demand
 Forecasting: The use of information from the past
and present to identify expected future
conditions.
 Forecasting Methods
(1) Judgmental
 Estimates—asking managers’ opinions, top-
down or bottom-up
 Rules of thumb—using general guidelines
 Delphi technique—asking a group of experts
 Nominal groups—reaching a group
consensus in open discussion
 Forecasting HR Supply and Demand
Forecasting Methods (cont’d)
(2) Mathematical
 Statistical regression analysis
 Simulation models
 Productivity ratios—units produced per employee
 Staffing ratios—estimates of indirect labor needs
Forecasting Periods
 Short-term—less than one year
 Intermediate—up to five years
 Long-range—more than five years
Forecasting Methods
 Unit 5
Recruitment, Selection, Orientation and
Placement

“ Hire for attitude. Train for Competence. Coach to Perform.

Manage to Retain” (jobEQ’s mantra)
 5.1 What is Recruitment?

 Recruitment is the process of finding the right

person for right position at the right time.
 Recruiting is that set of activities that an
organization uses to attract job candidates who
have the abilities and attitudes needed to help the
organization achieve its objectives
 5.2 Factors Affecting Recruitment

 Size of the organization

 Employee Turnover
 Organizational Growth
 Image of organization
 Nature of the Job
 Organizational policies
 Government
 Costs of Recruitment
 5.3 The Recruitment Process

Recruitment

Internal
Locating Sources of Recruitment
External

Internal
Attracting qualified candidates to apply
for jobs External
 5.4 Advantages and Disadvantages of
Internal Recruiting
Advantages:
 Better Selection
 Moral Building
 Adaptability
 Management Development
 Cost-effective
Disadvantages:
 Limited Choice
 In- breeding
 Favoritism
 Limited Opportunities
 5.5 Advantages and Disadvantages of
External Recruiting
Advantages
1. Qualitative Human Resources:
2. Organizational Rejuvenation
3. Environmental Adaptation
4. Balanced Human Resource Mix
5. Fairness in Recruitment:

Disadvantages
6. High cost
7. Poor Employee morale
8. Adaptability Problems
9. Wrong Selection
 5.6 What is Staff Selection?
 Selection is the process of choosing the most
suitable candidate for a particular position from
among the prospective applicants.
 Selection follows recruitment. It is concerned with
hiring the right person for the right job as well as
rejecting the applicants.
 Selection is the process of choosing from those
available the individuals who are most likely to
perform successfully on the job.
 Organizational effectiveness depends on the right
selection of quality of human resources
 5.7 The Selection Process
Selection steps Reasons for Rejection

Application form Under-qualified

Evaluation

Preliminary Below average in ability

interview

Selection Tests Poor Scores

Reference Checks Non-verifiable or Poor reference

Selection interview Not selected

Medical test Physically unfit

Hiring Decision Candidate rejects the job offer

5.8 Employees Promotion, Transfer and Termination
 Promotion
 A promotion occurs when an employee is moved from a
job to another position that is higher in pay, responsibility,
and/or organizational level.
 It is mechanism in which organization recognizes
employees past job performance and its effort to aid the
organization in furthering its objectives.
 Promotions usually are based on merit and/or Seniority.
 Seniority and Experience
 Seniority refers to the length of time employees have
been working in an organization.
 Advocates of paying for seniority believe that it enables
the organization to maintain stable workforce without
excessive turnover.
 The seniority must be linked with experience on the job.
 Organizations compensate employees on the basis of
experience, because “sometimes the practice is justified
because of the valuable insights that can only be acquired
through experience on the job"
 Termination/Separation
 Termination is a permanent separation of an
employee from an organization.
 It may occur when employees are fired, laid off,
resign, retire or die.
 There are many reasons for employee
terminations.
 Separation means leaving the organization.
 There may be many causes of separation/
employees exit.
 These can be stated under the following
headings:
 Separation… cont’d
a) Lay-offs: temporary separation of the employee
b) Resignations: termination of employment at the instance
of the employee.
c) Dismissal: termination of services as a punishment for
some major offences done by employees.
d) Suspension: when any serious charge is brought to light
against an employee.
e) Retrenchment: termination of the services of employees
because of the replacement of labor by machines or
closure of the company.
f) Retirement: there are two ways of retirement.
Compulsory and voluntary schemes
 Unit 6
Training and Development

“ If you’re not willing to learn, no one can help you. If you’re

determined to learn, no one can stop you.” (Source unknown)
 6.1 Concept of Human Resource Development
 Human Resource Development (HRD) is an important
function of human resource management.
 It ensures that organizations have adequate human
resources with capabilities needed for achieving goals
effectively.
 Human resource development is about two things:
• Training: Helping employees do their present jobs.
• Development: Helping mangers handle future
responsibilities
6.2 Distinction between Training and Development
Training Development
1. Focus on present jobs; 1. Focus on future
task oriented responsibilities; growth
2. Short-term periodic oriented.
process. 2. Long-term on-going process.
3. Target is operative 3. Target is managerial
employees employees
4. Confined to hands-on 4. Develops conceptual,
skills and knowledge interpersonal, technical and
5. Remedial effort. decision-making skills
5. Develop employee potential
 6.3 Training Process

Determine Specify Determine Select Training Conduct

Training training Curriculu Trainees/ Budget Training
Needs Objectives m/Method Trainers Programme

Evaluation and
Feedback
 Human Resource Development
 HRD is planned, continuous effort by management
to improve employee competency levels and
organizational performance through training,
education, and development program
 Training is a program designed to improve skills
and knowledge that help employees to effectively
perform their current job. The purpose is helping
employees to do their present job and it
 Human Resource Development… Cont’d
• Development is a program designed to improve the
overall effectiveness of managers for their present as
well as future positions. The purpose is to help
managers handle future responsibilities.
• Education is learning experience that improve overall
competency of an individual in a specific direction
beyond the current job. Teaching theoretical concept
and develop a sense of reasoning
 Major Purposes of Training
 Establish sound relationship between the worker
and his/ her job
 Upgrade skills and prevent skills obsolescence
 Develop healthy and constructive attitude
(Improves organizational climate) Increase
productivity and quality of work
 Improves labor-management relations
 Minimize operational error ( wastage, spoilage of
materials and unnecessary repetitions, reduce
hazards and accident)
 Major Purposes of Training…Cont’d

 Enhance employees moral and confidence

 Reduce employees turn over, absenteeism and job
dissatisfaction
 Minimize operational error (wastage, spoilage of
materials and unnecessary repetitions, reduce
hazards and accident)
 Major Purposes of Development
Major purposes of development are to:
 Improve managerial decision making skills
 Stimulate managers use more creative problem
solving approach
 Provide managers with latest information on theory
and practice of management
 Prevent managerial obsolescence
 Give managers the opportunity to discuss with
other people
The Basic Process of Training and Development
The training process consists of the following steps
Step 1: Determine Training Needs (Need Assessment
Step 2: Establishing training and development objectives
Step 3: Selecting Instructional Methods and Medias
Step 4: Select Trainees and Trainers
Step 5: Develop Budget
Step 6: Conduct Training
Step 7: Evaluate the Training and Development Programs
 Step 1. Determine Training Needs (Need
Assessment)
 Need assessment is refers to a systematic
identification of training and development needs.
 Training need is the gap between skills needed for a
job and the present skill level of employees. It should
be properly determined as follows:
 NB. Training and dev’t need = job performance
standard- actual performance
 If the actual performance is below the job standards it
indicates performance deficiencies
 Need Assessment…Cont’d
 NB. Training and development only used to close
the performance gap if the performance deficiency
is due to lack of skills, knowledge and experience.
 If the problem is other cause like lack of
motivation, poor selection etc… it can not be
solved by training or development.
The need assessment occur at three stages ( levels):
1. Organizational level
2. Task level (job analysis)
3. Individual Level (person analysis)
 Step 2. Establishing Training and Development
Objectives
 Training objectives are desired outcomes that the
training is intended to achieve
 Objectives define the performance standards that the
trainee should be able to exhibit after training e.g.
after training the secretary is expect to type 80 words
per minute
Purpose of establishing objectives are to:
 Evaluate the training and development outcome
 Choose appropriate training methods
 Step 3. Selecting Instructional Methods and
Medias
• Instructional methods and medias represent the
medium of instruction needed to teach specific
skills, knowledge and influence attitudes.
1. Information presentation methods:
Used to teach facts, skills and concepts without
requiring the trainee to practice the materials
thought.
 Step 3. Selecting Instructional…Cont’d
Information presentation methods:
Used to teach facts, skills and concepts without requiring
the trainee to practice the materials thought.
Lecture
Conference
 Programmed instruction
 Step 3. Selecting Instructional…Cont’d
2.Simulation Methods:
This method presents trainees with artificial
representations of an actual situation and require them
to react as though the situation were real
 Case study
 Role playing
 In basket exercise
 Step 4. Select Trainees and Trainers

 Right kind of trainees and effective trainers should

be selected
 Step5:Develop Budget

 Costing should be done for each training

program
 Step 6: Conduct Training

 The training program should be delivered to the

trainees as per schedule
Step 7. Evaluate the Training and Development
Programs
 It is a means to verify the success or failure of the
program
 Evaluation results provide feedback to improve
current activities and plan-future training programs
Criteria for evaluation
 Reaction: how happy is the trainee?
 Learning criteria: did the participant learn what was
intended?
Step 7: Evaluate the Training and Development
Programs
 Job behavior: did the learning transferred to job?
 Organizational impact: has the training helped
organizational performance?
 Ultimate value: has the training affected the
Ultimate wellbeing of the organization?
 Types of Human Resource Training

Major types of Human Resource Training programs are:

a. On the Job Training: conducted in the place where

the employee is actually working.

In this program the employee is placed in to real

work situations and shown how the job is performed
by experienced worker or supervisor
 Types of Human Resource Training…Cont’d
On the job training consists of four steps:
1. Orientation (Preparation): the trainees are told
about the job, purpose and expected outcome of the
training.
2. Demonstration (presentation): the trainees are
given instruction by telling, showing and explaining
about new knowledge and skills.
3. Practice: The trainees actually perform the job to
demonstrate their understanding. Errors are
corrected. Practice is continued.
4. The employee perform the job with out supervision
 Types of Human Resource Training…Cont’d
b. Off the Job Training: takes place outside the work situation.
The trainees removed from the stresses and demands of
workplace so as to focus on learning experience.

The methods used for off-the-job training are: Lecture/

conference, Simulation exercises and Programmed
Instruction

c. Vestibule Training: Trainees learn their jobs on the equipment

they will be using on the job. The training is conducted away
from the actual work environment. e.g. Language
laboratories, computer centers etc.
 Types of Development Program
The most common type of management development
programs are:
1.On-the-job Management Development
Management development takes place on the job. It is
learning by doing in the context of real work
environment.
The most common methods are:
a. Job Rotation : it involves shifting managers from
position to position. It is generally horizontal or lateral
job transfer.
Planned Rotation: Managers spend two or three
months on a job and are then moved on.
Types of Development Program… Cont’d
• Line and staff Rotation: managers can be shifted
between line and staff positions.
b. Coaching It is actively guiding managers by their
immediate supervisors. The coach gives the
guidance through direction, advice, criticism and
suggestions.
c. Development positions: organizations assigns less
experienced administrators to work temporarily as
an assistant to more experienced administrator.
 Types of Development Program… Cont’d

2. Off the Job management Development: in this

program managers move from their work situation to
other training institutions for concentrated programs.

Some of the methods used are: Seminar, work shops,

conference and other training programs conducted
by training institutions
 6.4 Career Development
Definition
 A career is a sequence of positions, jobs, and/or occupations that
one person engages in during his/her working life.
 Career development is the personnel activity which helps
individuals plan their future careers within the organization, in order
to help the organization achieve its objectives and the employee
achieve maximum self-development.
 Employees often ask questions like:
 How do we advance our career?
 What are the bases for promotion?
 Do organization human resource development programmes
enable our chances for promotion?
 Do we have a job security?
 Why have not our organization given us career counseling?
 6.5 Knowledge Management
What is Knowledge?
 It is actionable information.
 It is information that allows us to take a certain
action at any given moment in time.
 It is closely linked to doing and implies know-
how and understanding.
 Knowledge Management … cont’d

 Knowledge is a fluid mix of framed experience,

values, contextual information, expert insight and
grounded intuition.
 The current popular conceptualization of
knowledge is to view it as a continuum between
explicit knowledge and tacit knowledge.
Knowledge Hierarchy

Wisdom

Knowledge

Information

Data
 Types of knowledge
 In modern economy, knowledge is able harness
is the organization's competitive advantage.
 Knowledge is the product of organization and
systematic reasoning applied to data and
information.
 There are two type of knowledge: tacit
knowledge and explicit knowledge.
 Both tacit and explicit knowledge enable
organizations to respond to novel situations and
emerging challenges.
 Types of knowledge…

Tacit Knowledge Explicit knowledge

Knowledge Management
 Tacit knowledge
 It is personal.
 It is stored in the heads of people.
 It is accumulated through study and experience.
 It is developed through the process of
interaction with other people.
 It grows through the practice of trial and error
and the experience of success and failure.
 Tacit knowledge is context-specific.
 It is difficult to formalize, record, or articulate.
 It essential prerequisite for making good
decisions.
 Explicit Knowledge
 Explicit knowledge is codified.
 It is stored in documents, database, websites,
emails and the like.
 It is knowledge that can be readily made
available to others and transmitted or shared in
the form of systematic and formal languages.
 Explicit knowledge comprises anything that
can be codified, documented and archived.
 It includes knowledge assets such as reports,
memos, business plans, drawings, patents,
trademarks, customer lists, methodologies and
the like.
 Knowledge Hierarchy
Knowledge Management

Tacit Knowledge Explicit Knowledge

 Tacit  Explicit
Knowledge
 This type of – This type of
knowledge exists in knowledge can be
people’s heads, not » Processed by
articulated or Informati information
documented on systems
» Codified and
recorded
Data
» Archived and
protected
 Concepts of KM
 Any process or practice of creating, acquiring,
capturing, sharing and using knowledge,
wherever it resides, to enhance learning and
performance in organizations.
 It is a discipline that harnesses an organization’s largely
untapped resources and one of the factors of
development.
 All methods, instruments and tools that in a
holistic approach contribute to the promotion of
core knowledge process.
 The achievement of organization’s goals by
making factor knowledge productive.
 The Nature of KM

 Organizational learning or learning organization

backgrounds
 Information system backgrounds
 Strategy backgrounds
 Finance backgrounds
 Dimensions of Knowledge Management
 Strategy
 Systems and Technology
 Culture
 Organizational learning
 Building a KM Rationale

1. Globalization of business
2. Learner organizations
3. Corporate amnesia/partial or total loss of
memory
4. Technological advances
 Significance of KM
1. Improved services and products
2. Growing innovation and invention
3. Enhanced financial/economic figures
4. Improved value chain analysis
5. Better customer management
6. Satisfied & proud internal customers
7. Improved internal business processes
8. Goodwill and reputation
9. Built in Competitive advantage
 Knowledge Management Process
 The processes of KM involve knowledge acquisition,
creation, refinement, storage, transfer, sharing, and
utilization.
 The KM function in the organization operates these
processes, develops methodologies and systems to
support them, and motivates people to participate in
them.
 Social processes include communities of practice –
self-organizing groups of people who share a common
interest – and expert networks – networks that are
established to allow those with less expertise to contact
those with greater expertise.
 The KM Process Cycle
 Cycle models provide a useful way to organize one’s
thinking about KM processes.
 The process cycle model is particularly valuable in that
it uses the generally accepted terminology of KM and
makes use of alternative paths in order to make
important distinctions.
 The KM Process Cycle includes:
1. Knowledge Creation
2. Knowledge acquisition
3. Knowledge refinement
4. Knowledge storage and retrieval
5. Knowledge transfer
6. Utilization
 The KM Process Cycle …
1. Knowledge Creation
 Involves developing new knowledge or replacing
existing knowledge with new content (Nonaka, 1994).
The focus of this is usually on knowledge creation
inside the boundary of the firm or in conjunction with
partners.
 Four modes of knowledge creation: socialization,
combination, Externalization and internalization.
 Two Dimensions of Knowledge Creation
Epistemological
Dimension
e d
i on liz
at n a
Explicit
b in t er
Knowledge
C om Ex

So

ed
ci
al

iz
iz

al
at

rn
io

te
n

In
Tacit
Ontological
knowledge
Dimension
Individual Group Organization Inter-organization

Knowledge Level

Source: Adapted from Knowledge-Creating Company, p. 73.

 The KM Process Cycle…
2. Knowledge acquisition
 Involves the search for, recognition of, and
assimilation of potentially valuable knowledge,
often from outside the organization.
 Some processes for acquiring knowledge from
external sources- searching (as on the Internet),
sourcing (selecting the source to use) and
grafting (adding an individual who possesses
desired knowledge to the organization).
 Knowledge Acquisition Tools
 Final research reports
 Project close out/final reports
 Internal seminars
 Capturing achieved as a by product of our work such
as project plans, program proposals, etc
 Communities of practice/expertise groups
 Best practices database
 Lessons learned database
 Knowledge Acquisition Tools… cont’d
 Staff expertise database

 Knowledge development teams

 Staff document experiences

 Conducting oral interviews with seasoned staff

 Knowledge fairs

 Formal story telling

 Mentoring/coaching

 Retiree programs
 Knowledge Acquisition Tools… cont’d
 Exit interviews
 Social networks
 Oral histories
 Formal group discussions
 Post project reviews/After action reviews
 Employees spend time & effort to contribute to
their organization’s store of knowledge in
structured and ongoing manner (Broader
Responsibilities)
 The KM Process Cycle …
3. Knowledge refinement
 Refers to the processes and mechanisms that are used to
select, filter, purify and optimize knowledge for inclusion
in various storage media.
 After new knowledge is created or acquired, KM
mechanisms should be in place to prepare it to be entered
into the organization’s memory in a manner that maximizes
its impact and long term reusability.
 Tacit, or implicit, knowledge must be explicated, codified,
organized into an appropriate format and evaluated
according to a set of criteria for inclusion into the
organization’s formal memory.
 The KM Process Cycle
4. Knowledge storage and retrieval
 Organizational memory includes knowledge stored in
the minds of organizational participants, that held in
electronic repositories, that which has been acquired
and retained by groups or teams and that which is
embedded in the business’s processes, products or
services and its relationships with customers, partners
and suppliers
 Knowledge Storage/Memory

 Physical repositories/Hard copies

 Electronic repositories/databases
 Knowledge Categorization
 Knowledge of products/services
 Knowledge of processes/procedures
 Knowledge of production technology
 Knowledge of customers and markets
 Knowledge of your competitors
 Knowledge of your own people
 Meta-knowledge
 Techniques for Organizing Knowledge

 Glossary/vocabulary - list of terms & their

meaning; synonyms, homonyms
 Keywords - relationship between concepts and
chunks of information or knowledge
 Taxonomy - classifications or sub-groups of
content; user-oriented organizing scheme
 Techniques for Organizing Knowledge…
cont’d
 Knowledge maps - navigational aid to find relevant
Knowledge sources (information or people);
describes linkages between related bits of
knowledge
 Indexes - cross-references to sources & locations
 Catalogues - collection of indexes
 Knowledge Retrieval
Finding stored knowledge for dissemination and

transfer. Such mechanisms can be deployed:

Indexes

Codification systems

Search software like intranet and or internet portals

5. Knowledge transfer
 As shown in the figure, in order for knowledge to have
wide organizational impact, it usually must be either
transferred or shared.
 Transfer and sharing may be conceptualized as two
ends of a continuum. Transfer involves the focused and
purposeful communication of knowledge from a sender
to a known receive.
 Sharing is less-focused dissemination, such as through
a repository, to people who are often unknown to the
contributor
 Knowledge Sharing and Transfer
 Organizational memory refers to a set of
knowledge stored in the minds of organizational
participants, that held in electronic repositories,
that which has been acquired and retained by
groups or teams and that which is embedded in the
business’s processes, products or services and its
relationships with customers, partners and
suppliers.
 Knowledge Sharing and Transfer… cont’d
 In order for knowledge to have wide organizational
impact, it usually must be either transferred or
shared.
 Transfer and sharing may be conceptualized as two
ends of a continuum.
 Both of then can be deployed at a time for different
purposes.
 Knowledge Sharing and Transfer… cont’d
Transfer involves the focused and purposeful
communication of knowledge from a sender to a
known receiver (King, 2006a).
Sharing is less-focused dissemination, such as
through a repository, to people who are often
unknown to the contributor (King, 2006b) .
 Sharing Mechanisms
 Common access to explicit, recorded knowledge
 Directory of experts
 Mentor /coach / apprentice
 Joint projects - resource lending
 Meetings - in person, virtual
 Knowledge Maintenance
States of Knowledge

 current & accurate

 old, but still interesting

 wrong

 irrelevant

Maintenance Triggers

retention period

expiry date

review cycle
 The KM Process Cycle
6. Utilization
 Once knowledge is transferred to, or shared
with, others, it may be utilized through
elaboration (the development of different
interpretations), infusion (the identification of
underlying issues), and thoroughness (the
development of multiple understandings by
different individuals or groups).
 Anticipated improvements are the primary basis
that organizations use to judge the value of KM
initiatives.
 Exercise
1. Evaluate (identify the strengths and weakness)
recruitment and selection practices in your
organization.
2. Evaluate the training and development practices
in your organization.
 Unit 7
Performance Management

“ What is measured improves.” (Peter F. Drucker)

 Helicopter view of Performance Management
 Performance appraisal is a formal system of periodic review and
evaluation of an individual’s job performance (Mondy & Noe,
1990).
 When it is properly done, performance appraisal provides
feedback to employees that will improve their performance and
thus organizations also benefit by ensuring that employees' effort
and ability make contribution to organizational success.
 Moreover, performance appraisal data enables management:
To help with career planning, training and development, pay
increases, promotion and placement decisions.
To assess the success of recruitment, selection, placement,
training and development programmes, and other related
activities.
 Helicopter view of Performance Management
 It is among the most helpful tools an organization
can use to maintain and enhance productivity and
facilitate progress towards strategic goals.
 Its success and failure depends on
 the philosophy underlying it,
 its connection with business goals,
 and the attitudes and skills of those responsible
for its administration.
 Basics of Performance Management
 A systematic process for improving organizational
performance by developing the performance of
individuals and teams.
 It is a means of getting better results by understanding
and managing performance within an agreed
framework of planned goals, standards and
competency requirements.
 establishes shared understanding about what is to be
achieved.
 It focuses on enabling people on doing the right
things by clarifying their goals.
 Basics of Performance Management… cont’d
 It is owned and driven by line management.
 The overall aim of performance management is to
establish a high performance culture which
individuals and teams take responsibility through
effective leadership.
 It is about aligning individual objectives to
organizational objectives and ensuring that
individuals uphold corporate core values.
 It provides for expectations to be defined and agreed
in terms of role responsibilities and accountabilities
(expected to do), skills (expected to have) and
behaviors (expected to be).
 Basics of Performance Management… cont’d
 Specifically the following are some of the goals of performance
management:
1. Empowering, motivating and rewarding, employees to do their
best;
2. Focusing employee’s tasks on the right things and doing them
right;
3. Aligning everyone’s individual goals to the goals of the
organization;
4. Proactively managing and resourcing performance against
agreed accountabilities and objectives;
5. Manage the performance of people to deliver a high-achieving
organization;
6. Maximizing the potential of individuals and teams to benefit
themselves and the organization, focusing on achievement of
their objectives.
 Characteristics of Performance Management
 Concerned with measuring outputs against expectations expressed as
objectives- focuses on targets, standards and performance measures or
indicators.
 It is based on the agreement of role requirements, objectives and performance
improvement and personal development plans.
 It is also concerned with inputs and values. The inputs are the knowledge,
skills and behaviors required to produce the expected results.
 It is a continuous and flexible process, which involves managers and those
whom they manage acting as partners within a framework that sets out how
they can best work together to achieve the required results.
 It is based on the principle of management by contract and agreement rather
than management by command. It relies on consensus and co-operation rather
than control or coercion.
 It focuses on future performance planning and improvement rather than on
retrospective performance appraisal.
 Types of Performance Appraisal

1. Manager/Supervisor Appraisal
2. Self-Appraisal
3. Peer Appraisal
4. Customer Appraisal
5. 360 Degree Appraisal
6. 540 degree appraisal
 Performance Mgt as a Process
• Planning: Deciding what to do and how to do it.
• Acting: Carry out the work needed to implement the
plan.
• Monitoring: checking what is going on and how it is
going on.
• Reviewing: consider what has been achieved and , in
light of this establish what more needs to be done.
 Planning: Performance Agreements
 Agreement between the manager and the individual
on what the latter needs to do to achieve objectives,
raise standards, improve performance and develop
the required competencies.
 Objectives setting is also part of this process.
 Objectives can be:
• On-going role or work objectives
• Targets
• Behavior
• Tasks/projects
• Objectives should be SMARTERS
Measuring performance in achieving objectives
 It is the basis for providing and generating
feedback.
 It identifies where things are going well to
provide the foundations for building further
success, and
 it also indicates where things are not going so
well, so that corrective action can be taken.
Acting: Managing Performance throughout the Year
 It is a continuous process
 It should be treated as a natural function that all
good managers carry out.
 Reviewing Performance
1. It provides a focal point for the consideration of key

performance and development issues.

2. Performance review meeting is the means through

which the five primary performance management

elements of agreement, measurement, feedback,
positive reinforcement and dialogue can be put to
good use.
 Criteria for assessing performance

The criteria for assessing performance should be

balanced between:
1. achievements in relation to objectives;
2. the level of knowledge and skills possessed and
applied (competences);
3. behavior in the job as it affects performance
(competencies);
4. the degree to which behavior upholds the core
values of the organization;
5. Day-to-day effectiveness.
 Developing an Effective Appraisal Program
 Standards by which performance is to be evaluated
should be clearly defined and communicated to the
employee.
 When performance standards are properly
established, they help translate organizational goals
and objectives into job requirements
Types of Performance Information
 Establishing Performance Standards
There are four basic considerations in establishing

performance standards:
1. strategic relevance,

2. criterion deficiency,

3. criterion contamination, and

4. reliability
 Performance Appraisal Methods
1. Trait Method
2. Graphic Rating Scales
3. Forced Choice Method
4. Behavioral Method
5. Critical Incident Method
6. Behavioral Checklist Method
7. Behavioral Anchored Rating Scales (BARS)
8. Behavior Observation Scales (BOS)
9. Result based methods
10. Management by Objectives (MBO)
11. Narrative Method
12. Balanced Scorecard
360° Feedback
 Problems with performance rating

1. The halo error: excessive weight is given on

certain point of interest to the rater.
2. Central tendency: In this case, all employees are
rated about average.
3. Leniency: a manager may erroneously assert, "All
my employees are excellent“.
4. Strictness error: a manager may erroneously assert,
"None of my people are good enough."
5. Recency error: happen when a manager get biased
by the employees recent performance.
 Problems with performance rating… cont’d
6. Similar-to-me error: occurs when appraisers inflate
the evaluations of people with whom they have
something in common.
7. Length of service bias: length of service bias occurs
when managers make a false assumption that an
employee is more valuable the longer he or she has
been with the company.
8. Opportunity bias: An opportunity bias occurs when
managers give inappropriate ratings for reasons
completely unrelated to the job or the employee.
9. Contrast error: basing an appraisal on comparison
with other employees rather than on established
performance criteria.
 Why PA May Fail?
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 The BSC as a Measurement System
 The balanced scorecard (BSC) is the most widely
applied performance management system today.
 Balanced score card can be seen from three angles:
which is strategic management, performance
management and communication tool.
 BSC allows an organization to translate its vision
and strategies by providing a new framework
 Unlike earlier performance measurement systems,
the BSC measures performance across four
different perspectives
 Custome
r

Learning BSC
and Perspectiv Financial
Growth es

Process
 Dealing with Under-Performers
 Discuss how you deal with subordinates whose performance
appraisal is not satisfactory. (If there are real examples, it is
highly appreciated).
It is a positive process that is based on feedback
throughout the year and looks forward what can be
done by individuals to overcome performance problems
and how managers can provide support and help.
The five basic steps required to manage
underperformance are:
1. Identify and agree the problem;
2. Establish the reason(s) for the shortfall,
3. Decide and agree on the action required,
4. Resource the action,
5. Monitor and provide feedback
 The art of providing feedback
The “sandwich” approach
Praise – Comment – Praise
 The art of providing feedback
The “F-E-E-D” method
Frame: Summarize key accomplishments of the
employees; express your goodwill.
Evident: Describe in detail what you have heard and
witnessed regarding employee
underperformance.
Effect: State your view of the effect of the employee’s
underperformance or poor attitude related to
the work assigned.
Desire: Recommend ways to improve performance.
 Coaching and Mentoring

“ If an egg is broken by outside force, life ends. If borken by

inside force, life begins. Great things always begin from
within” (Jim Kwik)
 Concepts of Coaching
• It is a process whereby awareness of the potential for
change, development and improvement is awakened in an
individual; and that individual takes personal responsibility
for driving the change process.
• It is a high-level leadership; it is communicating the what,
the why and then helping with the how-whether behavioral
or attitudinal.
• It is a way of working with people that leaves them more
competent and more fulfilled so that they are more able to
contribute to their organizations and find meaning in what
they are doing.
 Concepts of Coaching… cont’d
• Is a partnership designed to tap into the knowledge,

information, synergy, and talents people bring to the

problem solving process,
• Is the ongoing and consistent way in which we present

ourselves, and through which we build and maintain

relationships with others.
 Concepts of Coaching… cont’d

• Is a skill that leaders/managers practice as they hire

employees, manage performance, mentor, and solve
problem, teach, and guide others.
• Coaching implies motivating, inspiring, taking people
to greater heights.
• Coaching is an excellent activity for your people who
are performing okay.
 Concepts of Coaching… cont’d

• Coaching is too closely tied to the improvement of

performance to imagine that it can ever become
dated.
• Coaching has been of value for equipping people to
perform and gaining their commitment to perform
well for as long as people have assisted one another
to do their best.
• Coaching works at every level and in all
organizational relationships.
 Fundamentals of Coaching:

• Address individual and organizational change

to improve mission performance.
• Enable personal transformation and career role
transition.
• Support the development of future leaders for
the organization
• Address a specific problem area or challenge
 Fundamentals of Coaching:

• Facilitate the creation of an organizational

culture
• Improve the performance of the organization
• Creates the major factors that lead to
commitment
• Clarifies goals and commitment
 Fundamentals of Coaching:

• Helps people to understand what is/is not

important.
• Helps people to resolve performance problems
• Improves that knowledge and skills that people
need to do their best.
• Understand his strengths, weaknesses, and
environment.
• Conveys to others just how important and
appreciated they are.
 Fundamentals of Coaching:

Leader as a Coach Continuum

Coaching is. . . Coaching is not . . .

① Exploring ① Telling
② Facilitating ② Directing
③ Partnership ③ Authority
④ Long-term development ④ Immediate needs
⑤ Open to many possible outcomes ⑤ One specific
outcome

Helping employees manage the transition between old and new

*
 Fundamentals of Coaching:

Coaching is. . . Coaching is Not. . .

1. A means for learning and ① An opportunity to correct

development. someone’s behaviors or
2. Guiding someone toward actions.
her or his goals. ② Directing someone to do
3. The mutual sharing of something to meet goals
experiences and opinions . Being the expert or supervisor
③
to create agreed-upon with all the answers (not the
outcomes. “super technician”).
4. About inspiring and ④ About trying to address
supporting another personal issues.
person.
 Fundamentals of Coaching:
Coaching is Coaching is not
Continuous A one-time event
Asking Telling
Listening Talking
Caring Avoidance
What they think What you think
Possibilities Rigid
Clarifying Blaming
Encouraging Discouraging
Open-ended Restrictive
Major Coaching
• No commitment to staff development

• No building trust or respect

• Giving advise instead of asking questions

• Not listening to what is really being said

• Not researching what is really important to the staff

• Not prepared to change own behavior

 1. Clarity 2. Supportiveness
3. Confidence
Building

10. Respect

4. Mutuality
Ten Values of a
9. Confidentiality successful coach

5. Perspective

8. Involvement

7. Patience 6. Risk
 The 10 values of a successful staff coach
1. Clarity- giving and receiving accurate
communication.
2. Supportiveness- a commitment to stand with and
behind team members.
3. Confidence building- a personal commitment to
build and sustain the self-image of each team
member.
4. Mutuality- a partnership orientation where everyone
wins or no one wins.
5. Perspective- a total focus on the entire business
enterprise.
The 10 values of a successful staff coach…
6. Risk- the encouragement of innovation and effort that
reduces punishment for mistakes and fosters learning
by doing.
7. Patience- going beyond the short-term business.
8. Involvement- a genuine interest in learning about
individuals in order to know what incentives,
concerns, and actions will inspire them.
9. Confidentiality- an ability to protect the information of
all team interactions and cause a sense of trust and
comfort with the individuals.
10. Respect- giving and receiving of high regard to and
from the staff as individuals and members of the team.
 The Right Time for Coaching

When employees are:

• Failing to perform their work to an acceptable
standard.
• Taking responsibility on a useful project that is
outside their normal role.
• Have potential for promotion, but need to develop
more skills first.
• Have a lot of potential, but are getting restless and
bored, and you fear that they may leave the
organization.
 The Right Time for Coaching

When employees:
• do not meet their performance objectives by the next

performance appraisal meeting based on your

informal review.
• need to acquire new skills for their job which is
evolving.
 The Right Time for Coaching
Also if employees are:
• constantly late

• keeps talking and interrupting others

• Insecure about their job

• Overly emotional at work

• Have a bad attitude that is affecting other team

members
• reluctant to delegate
 Coaching Skills

① Active listening,
② Asking open questions,
③ Emotional Intelligence
④ Goal setting,
⑤ Feedback giving and receiving
 Key Coaching Responsibilities

• Constant communications;
• Selecting and carefully matching employees to
jobs;
• Setting and ensuring employees’ understanding of
performance standards and goals;
• Providing fair and accurate performance
feedback;
• Assisting employees in planning and
accomplishing their work ;
• Creating a development plan for each employee;
• Fostering a culture of managed risk taking and
internal communications.
 Qualities/Characteristics of Good Coach

 Promotes open and constructive discussion;

 Is comfortable with differences;
 Is not demeaning or disrespectful of others;
 Creates a safe environment for interaction, disclosure,
and information flow;
 Shares views, facts, and information in a non-
threatening manner;
 Qualities/Characteristics of Good Coach...

• Is open to new ideas, and to the possibility that he/she

has an incomplete understanding of the situation;

• Focuses on learning and change;

• Strengthens and empowers others;

• Maintains high expectations and performance

standards; and
• Unleashes /set free/ motivation and creativity.
Five Insights of High-Performance coaches

① People behave based on their thoughts

② Individuality should be valued and explored

③ Lack of motivation often reflects

discouragement

④ Consequences determine performance

⑤ People treated responsibly take responsibility.

 Mentoring
• Mentoring relates primarily to the identification and
nurturing of potential for the whole person.
• Mentoring is a collaborative partnership in which
the mentor and the mentee take shared
responsibility for the success of the relationship.
• Mentoring is helping individuals do things they
never knew they could do; it is about teaching
individuals how to understand and use their
potential to fullest.
• Mentoring relates to emotional support and
guidance given by usually an older person to a
younger one, who is called Protégé.
 Mentoring … cont’d
• Mentoring is the processes where a person (the mentor)
provides support, training and guidance to a less
experience, usually younger person (the mentee,
mentoree, or protege).
• Mentoring is about general development and
psychological well being of a person.
• It is about sharing concern, getting moral support and
guidance for development.
• A mentor helps associate see meaning and vision in
what they are doing and serves as a role model.
 Opportunities for Mentoring
 When an associate receives a promotion or new
responsibilities
 After a success
 When the individual wants more than successes or
promotions
 When things occur which challenge individuals dreams
or course of action
 Objectives of Mentoring
① Establishing a relationship of trust
② Modeling behavioral norms for the young person
③ Listening to person’s concerns, and problems
④ Helping search alternative solutions
⑤ Sharing own/relevant experiences
⑥ Responding to his emotional needs without making
him dependant on the mentor
⑦ Developing long-lasting, personal, and informal
relationship.
 1. Know 2. Know your
Your work Org. 3. Get to know
Your mentee
10. Mutual trust
and commitment

4. Learn to teach
How to Become an
9. Celebrate Effective Mentor?
success

5. Learn to learn

8. Take risks

7. Be tactful 6. Be Patient
 12. A desire to be
a mentor 13. A role model

11. Emotional
Maturity

How to Become an
14. Self confidence
Effective Mentor?...

16. Self-knowledge

15. Visionary
Phases of Mentoring

1. Observe
 Outcome of Effective Mentoring
① Awareness of Organizational politics and culture

② Appreciation of networking

③ Proactive approaches to their tasks

④ Eagerness to learn

⑤ Movement toward “expert” status

⑥ Attitude of “advocacy”
 Coaching Vs. Mentoring
Coaching Mentoring
Task-oriented, skills- focused, direct Open-ended personal development
and time bound
Primarily line manager role Works best offline
Agenda set by or with coach Agenda set by learner
Typically addresses a short-term Typically a longer-relationship often
need ‘for life’
Feedback and discussion primarily Feedback and discussion primarily
about explicit about implicit, intuitive issues and
behaviors
Identify potential and deals with Lets employees soak up character,
problems judgment and approach
Inspires and motivates Instruct and guide
Change Oriented Growth Oriented
Commonalities of Coaching and Mentoring
① Provide individuals and teams with opportunities for
gaining new skills, and personal development
② Offer learning opportunities geared to individual needs
③ Encourage a positive attitude to learning
④ Help improve communication within the organization
⑤ Increase individual and team commitment to an
organization and its goals
⑥ Help to change organizational culture for the better
⑦ Allow individuals to gain a greater insight into the
organization’s workings
⑧ Improve levels of professional success
⑨ Provide flexibility in the learning process
 Unit 8
Compensation and Benefits Administration
 7.1 Compensation and Benefit Administration
 The purpose of compensation and benefit
administration should be to enhance the effective and
efficient utilization and management of an
organization's workforce.
 The purpose should also contribute to the overall
strategic mission of the organization.
 Compensation is the reward employees receive in
exchange for their performance.
 It is concerned with wages and salaries, pay raises,
and similar monetary exchange for employees’
performance.
 Compensation …
Well-designed pay or compensation system enables the
organization:
 To attract sufficient and qualified employees

 To retain and motivate the existing workforce

toward its goal achievement.
 To reward employees for their effort and achievement

On the contrary, if compensation is not tied to work,

employees are likely to look for a better paying job.
 Objectives of Compensation
 The objective of a compensation administration is to
establish fair and equitable rewards to the employees, so that
they are motivated.
 Other specific objectives of compensation management are
to:
 Acquire qualified personnel
 Retain current employees who are satisfactory
 Ensure equity
 Reward desired behavior
 Control costs
 Comply with legal regulations
 Facilitate understanding
 Further administrative efficiency
 Types of Compensation
Compensation
Financial Compensation Non-Financial Compensation
Direct indirect The job The envt.
 Wages  Insurance  Interesting  Sound Policies
 Salaries Plans Duties  Competent
 Commis  Social  Responsibility Supervision
sions Assistance  Congenial Co-
 Bonus  Employee  Recognition Workers
Services  Achievement  Status Symbols
 Paid  Advancement  Working conditions
Absences  Job Sharing
 The major parties and issues of concern are
Parties Main issues of concern
Government Ensure that financial compensation supports the
social and economic interests of the broader
society.
Occupational Protect members’ human capital investment
groups
Unions Protect, maintain, and increase the welfare of the
worker.
Individual Ensure that a balance is maintained between
contributions to work and the outcomes received
from work.
Organization Within budget constraints, attract individuals into
the organization, retain employees, and motivate
behavior toward achievement of organizational
goals.
 Determinants of Financial Compensation
Financial compensation system is influenced by the

following factors:
 the organization,
 the labour market,
 the job and
 the employee have an impact on the job pricing
and the ultimate determination of employee’s
financial compensation.
 Benefits (Indirect Compensation)
In addition to financial compensation, employees enjoy
other benefits because of their membership in the
organization.
What then are benefits?
Employee benefits are the indirect form of the total
compensation; they include:
 paid time away from work,
 insurance and health protection,
 employee services, and
 retirement income
Benefits, however, are indirect compensation that
organizations provide to their employees and are not
directly related to performance.
 Major Categories of Benefits
Employee benefits can be divided in the following
major categories:
 Insurance Benefits
 Security Benefits
 Employee Services
 Time-off Benefits
 Activity
1. How do you evaluate the compensation and

benefits administration practices in your

organization.

2. What do you suggest to improve the compensation

and benefits administration practices in your

organization.
Comments
Best wishes!