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Discuss Notes, projects, reference material etc within the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT forums, part of the Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects category; SUCCESSION PLANNING Meaning of Succession Planning Succession planning is the process or activities connected with the filling of key positions ...

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dk2424
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Re: Notes, projects, reference material etc - August 9th, 2008

SUCCESSION PLANNING
Meaning of Succession Planning

Succession planning is the process or activities connected with the filling of key positions in the organization hierarchy as vacancies arise. Succession planning focuses on identification of future vacancies and locating the probable successor. For example in succession planning the key concern can be who will be next CEO or what will happen if the Marketing Manager retires in coming March. Grooming a person to fill an important position may take years. Succession planning involves identification of key positions in the company and then scouting for people who can effectively fill those positions at short notice.

Importance of Succession Planning

1. Succession planning helps when there is a sudden need due to job hopping/death of serious injury to a key employee.
2. There is little or no set back due to absence of key employee.
3. Acts as a motivator for the individual employee who comes to know of the impending promotion in advance.
4. Succession planning helps create loyalty towards the organization and improved motivation and morale of individual employees.
5. Organization gains stable workforce and low employee turnover.
6. Ultimately organization becomes successful in accomplishing its goals effectively.

CAREER PLANNING
Career as a concept means a lifelong sequences of professional, educational and developmental experiences that an individual goes through in his working life. It is a sequence of positions occupied by a person during his life.

Career planning is the process of identifying an individual’s strengths, weaknesses, aptitudes, inclinations, aspirations and attitudes and designing his job responsibilities to take maximum advantages of positive traits and minimising the effect negatives traits.

After identifying the personality traits of the individual begins the process of identifying suitable job billets for him. It may also involve training at times to strengthen his weak areas.

Career planning is a process of integrating the employees’ needs and aspirations with organizational requirements.

A typical succession planning involves the following activities:

1. Analysis of the demand for managers and professionals by company level, function and skill.
2. Audit of existing executives and projection of likely future supply from internal and external sources.
3. Planning of individual career paths based on objective estimates of future needs and drawing on reliable performance appraisals and assessments of potential.
4. Career counselling undertaken in the context of a realistic understanding of the future needs of the firm as well as those of the individual.
5. Accelerated promotions with development targeted against the future needs of the business.
6. Performance related training and development to prepare individuals for future roles as well as current responsibilities
7. Planned strategic recruitment not only to fill short term needs but also to provide people for development to meet future needs
8. The actual activities by which openings are filled





JOB ANALYSIS

Definition 1

“Job Analysis is a process of collecting and studying the information relating to operations and responsibilities of a specific job. The immediate products of this analysis are ‘Job Description’ and ‘Job Specifications’.”

Definition 2

“It is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job.”

PURPOSE OF JOB ANALYSIS: -
• Human Resource Planning (HRP): Job analysis helps in determining staffing needs, type, quality and quantity.

• Recruitment & Selection: Knowing the staffing needs is essential for Recruitment and Selection – Right person for each job. Sourcing of recruits also becomes easy and cost effective

• Training & Development: Job analysis is the key to determining Training and Development programs.

• Job Evaluation: Job evaluation means determination of relative worth of each job for the purpose of establishing wage and salary. This is possible with the help of job description and specifications; i.e. Job Analysis.

• Remuneration: Job analysis also helps in determining wage and salary for the jobs.

• Performance Appraisal: Job analysis helps in fixing the bench marks of performance standards which in turn help in objective Performance appraisal, rewards, promotions, etc.

• Safety & Health: Job Analysis helps to uncover hazardous conditions and unhealthy environmental factors so that corrective measures can be taken to minimize and avoid possibility of human injury.


JOB DESCRIPTION

“Job Description implies objective listing of the job title, tasks, and responsibilities involved in a job.”

Job description is a word picture of the duties, responsibilities and organizational relationships that constitutes a given job or position. It defines work assignment and a scope of responsibility that are sufficiently different from those of the other jobs to warrant a specific title. Job description is a broad statement of purpose, scope, duties and responsibilities of a particular job.

Contents of Job Description
1. Job Identification
2. Job Summary
3. Job Duties and Responsibilities
4. Supervision specification
5. Machines, tools and materials
6. Work conditions
7. Work hazards
8. Definition of unusual terms

Format of Job Description
1. Job Title
2. Region/Location
3. Department
4. Reporting to (Operational and Managerial)
5. Objective
6. Principal duties and responsibilities


JOB SPECIFICATIONS

“Job Specification involves listing of qualifications, skills and abilities required in an employee to meet the job description. These specifications are minimum required to do the job satisfactorily.”

In other words, it is a statement of minimum acceptable physical/psychological attributes and professional skills necessary to perform the job properly. Job specifications seek to indicate kind of persons who can be expected to meet the role requirements. Thus, it is basically concerned with matters of selection, screening and placement and is intended to serve as a guide in hiring.

Contents of Job Specifications
1. Physical Characteristics
2. Psychological characteristics
3. Personal characteristics
4. Educational Qualifications
5. Skill Set and Experience/Responsibilities
6. Demographic features
Job specifications can be further divided into three broad categories
1. Essential Attributes
2. Desirable Attributes
3. Contra-Indicators – Attributes which are likely to act as impediments to success of job













JOB EVALUATION

Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization.

Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of Job Description and Job Specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs they perform. Remuneration must be based on the relative worth of each job. Ignoring this basic principle results in inequitable compensation and attendant ill effects on employees’ morale. A perception of inequity is a sure way of de-motivating an employee.

Jobs are evaluated on the basis of content and placed in order of importance. This establishes Job Hierarchies, which becomes the basis for satisfactory wage differentials among various jobs.

Jobs are ranked (not jobholders)

PROCESS OF JOB EVALUATION:
1. Defining objectives of job evaluation

(a) Identify jobs to be evaluated (Benchmark jobs or all jobs)
(b) Who should evaluate job?
(c) What training do the evaluators need?
(d) How much time involved?
(e) What are the criteria for evaluation?
(f) Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.
METHODS OF JOB EVALUATION
1. Analytical Methods

(a) Point Ranking Methods: Different factors are selected for different jobs with accompanying differences in degrees and points.
(b) Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these factors are then ranked with other jobs. The worth of the job is then taken by adding together all the point values.

2. Non-Analytical Methods

(a) Ranking Method: Jobs are ranked on the basis of their title or contents. Like Managers, Supervisors, Workers, Peon, etc. All managers whether from production, planning, sales, stores or Allied Services (House Keeping) Deptt are treated equal. Job is not broken down into factors etc. It is easier to implement but not always satisfactory for the employees.

(b) Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. Like in a hotel, Receptionist’s job may be graded higher than back office billing clerk’s job. Similarly, a production/sales manager billet may be graded higher than Allied Services Manager’s. In this method it is important to form a grade description to cover discernible differences in skills, importance to company’s core operations, responsibilities and other characteristics.

PITFALLS OF JOB EVALUATION:
1. Sometimes encourages employees to manipulate for promotion/internal placement when there may be limited opportunities for enhancement as a result of downsizing.

2. It promotes internal focus (office politics) instead of customer orientation

3. Not suitable for forward looking organizations, which may have trimmed multiple job titles into two or three broad jobs.














JOB DESIGN

In the most simplified form - The process of breaking/organizing work into specific tasks in order to perform a specific job is called Job Design. Job Design is the logical Sequence to Job Analysis. Job design involves conscious efforts to organise tasks, duties and responsibilities into a unit of work to achieve certain objective.

Steps in Job Design
1. Specification of Individual Tasks
2. Specification of Methods for Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals

FACTORS AFFECTING JOB DESIGN
1. Organizational factors
(a) Characteristics of Tasks (Planning, Execution and Controlling of Task)
(b) Work Flow (Process Sequences)
(c) Ergonomics (Time & Motion Study)
(d) Work Practices (Set of ways of performing tasks)
2. Environmental Factors
(a) Employee Abilities and Availability
(b) Social and Cultural Expectations
3. Behavioural Elements
(a) Feedback
(b) Autonomy
(c) Use of Abilities
(d) Variety
TECHNIQUES OF JOB DESIGN
1. Work Simplification: Job is simplified or specialized. The job is broken down into small parts and each part is assigned to an individual. To be more specific, work simplification is breaking down the job to such small tasks that complexity is taken out of them. Like in a assembly line of car, one person only tighten wheel nuts with a pneumatic tool which tighten the nuts. The complexity of ensuring that each nut is tightened to required degree has been transferred to machine and the worker only applies the tool to the right place. He does not even put the wheel in place. In such cases, work becomes repetitive in nature. Work simplification is used when jobs are not specialized.

2. Job Rotation: Same job, same people, same surrounding, days over days, months over months, leads to boredom and even fatigue. And it manifests in higher error rate, fall in productivity, absenteeism, job hopping, etc. Job rotation is answer to such problems. While broadly the job may remain same, minor variations between jobs are enough to rejuvenate the employee. It not only benefits the personnel but also the organisation in equal measure

(a) Benefit to the Employee. It is a development tool since the employees get exposure to several jobs which develops their personality and employability. It improves their self-image and leads to personal growth. Such cross functional deployments often reveal hidden performance potentials/skills of many employees in the course of new job.
(b) Benefits to the Company: Such cross functional knowledge of employees provides the company with a fall back option in case of absence of any employee. It also gives flexibility to the management to reorganise the functional setup just in case of need like demand pattern shift or change in business model or any other eventuality. Also, periodic job rotation is the best method to avoid compartmentalisation of departments. Movement of personnel between departments and first hand knowledge of limitations and problems faced by other departments reduces frictions and leads to better cooperation between them. Interpersonal bonds developed during in the course of such cross functional job rotation further smoothens the interaction between departments. On the negative side, training costs rise and it can also de-motivate intelligent and ambitious trainees who might take it as their undesirability in their own department unless it is well laid down policy of the company.
3. Job Enlargement: It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not necessarily mean that new skills and abilities are needed. There is only horizontal expansion. It is with same skills taking additional responsibilities like increasing the number of machines operators under a supervisor from 10 to 15. Job enlargement may involve breaking up of the existing work system and redesigning a new work system. For this employees also need to be trained to adjust to the new system. Job enlargement is said to contribute to employee motivation but the claim is not validated in practice.

4. Job Enrichment: Job enrichment is to add a few more motivators to a job to make it more rewarding. A job is enriched when the nature of the job is exciting, challenging, rewarding and creative or gives the job holder more decision-making, planning and controlling powers. An enriched job will have more authority, responsibility, autonomy (vertical enrichment), more variety of tasks (horizontal enrichment) and more growth opportunities. The employee does more planning and controlling with less supervision but more self-evaluation. For example: transferring some of the supervisor’s tasks to the employee and making his job enriched. As per Hertzberg, who was the father of this term, an enriched job has eight characteristics:

(a) Direct Feedback: Employee should be able to get immediate knowledge of the results they are achieving.
(b) Client Relationship: An employee who serves a client or customer directly has an enriched job. The client can be outside or inside the firm.
(c) New Learning: An enriched job allows its incumbent to feel that he is growing intellectually.
(d) Scheduling Own Work: Freedom to schedule own work (autonomy) is job enrichment.
(e) Unique Experience: A enriched job has some unique qualities or features.
(f) Control over Resources: One approach to Job enrichment is for the each employee to have control over his or her resources and expenses.
(g) Direct Communication Authority: An enriched job allows worker to communicate directly with people who use his or her output.
(h) Personal Accountability: An enriched job holds the incumbent responsible for the results. He or she receives praise for good work and blame for poor work.
Problems with Job Enrichment
(a) Job enrichment is not a substitute for good governance. If other environmental factors in the business are not right, mere job enrichment will not mean much.
(b) Job enrichment may have short term negative effects till the worker gets used to the new responsibility.
(c) Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per the two-factor motivation theory, job enrichment is not enough. It should be preceded by hygienic factors etc.
(d) Job enrichment assumes that workers want more responsibilities and those workers who are motivated by less responsibility, job enrichment surely de-motivates them
(e) Workers participation may affect the enrichment process itself.
(f) Change is difficult to implement and is always resisted as job enrichment brings in a changes the responsibility.

5. Autonomous or Self-Directed Teams: Empowerment results in self-directed work teams. A self-directed team is a group of employees responsible for a whole work segment. They work together, handle day-to-day problems, plan and control, and are highly effective team.


JOB SATISFACTION

Job satisfaction is self satisfaction derived by an employee in doing the job he has been entrusted to do. Job satisfaction is more a function of the various attitudes possessed by an employee towards his job, related factors and life in general than the job itself. The attitudes related to job may be wages, supervision, steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of work, social relations on job, prompt settlement of grievances etc. A person with a kind heart will find high level of job satisfaction in working with some agency involved in charitable work though the salary might be relatively less. An over ambitious person will never find the job satisfaction.

In short job satisfaction is a general attitude towards the job, which is the result of many specific attitudes in three areas namely, job factors, individual characteristics and group relationships outside the job.

COMPONENTS OF JOB SATISFACTION
Personal factors: Sex, Dependents, Age, Timings, Intelligence, Natural affinity towards the job, Education and Personality.

Job Inherent Factors: Nature of work, Skills, Occupational status, Geography, etc.

Management Controlled Factors: Security, Payment, Fringe benefits, Advancement opportunities and Working conditions, Co-workers, Responsibilities, Supervision

WORK SAMPLING
Definition:
"A measurement technique for the quantitative analysis of an random/irregularly occurring activity."
MEANING OF WORK SAMPLING
Work sampling is based on the theory that the characteristics of a sufficiently large sample represent the actual characteristics of entire population. Work sampling operates by an observer taking a series of random observations on a particular "item" of interest (machine, operating room, dock, etc.) to observe its "state" (working, idle, sleeping, empty, etc.). When enough samples are taken, an analysis of the observations yields a statistically valid indication of the states for each thing analyzed.
Assume, for example, that you wish to determine the proportion of time a factory operator is working or idle. Also assume that 200 random observations were made of the operator and during 24 of these he or she was observed to be idle. From the random samples of his state you conclude that the individual is working 176/200 = 88% of the time.
ADVANTAGES OF WORK SAMPLING
It is relatively easy, simple and inexpensive to use and extremely helpful in providing a deeper understanding of all types of operations.
When properly used, it can help pinpoint those areas, which should be analyzed in further detail and can serve as a measure of the progress being made in improving operations.
QUESTIONS OF WORK SAMPLING STUDY
• What is our equipment/asset utilization?
• When we are not adding value to the product, how are we spending our time?
• How are our inter-dependent systems performing?
• Where should we focus our continuous improvement activities?
DISTINCTION BETWEEN WORK SAMPLING AND "TIME STUDIES"
Before we set out to analyse the distinctions between work sampling and time studies, let us understand that the two are as different as chalk and cheese. The purpose of each is different and one can not be substituted by the other in most cases. While work sampling is a broad analysis of trend, time study is microanalysis of the job and procedure. Time study is conducted with a view to improve the process/method where as work sampling is done to improve quantitative utilisation of resources.
• Work sampling is relatively cheaper because it uses random samples instead of continuous observations.
• Many operators or machines can be studied by a single observer
• Work sampling normally spans over several days or weeks, thus minimizing the effects of sudden variations on a particular day.
• Work Sampling tends to minimize operator behaviour modification during observation (operator, deliberately or otherwise, under or over performing while under observation).
• Work Sampling, in general, does not require a trained time-study analyst to take the observations. Also, stopwatches or other timing devices are not required. Many studies make use of off-shift technicians or operators to take the observations.
WORK SAMPLING METHODOLOGY
An analyst RANDOMLY observes an activity (equipment, operating room, production line) and notes the particular states of the activity at each observation.

The ratio of the number of observations of a given state of the activity to the total number of observations taken will approximate the percentage of time that the activity is in that given state.

Randomness of observations is very critical for a work sampling study. The observations should vary over the time of the day, days of the week and if possible, months to get he correct trend.



RECRUITMENT

Definition:

“Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates”.

The Process begins when new recruits are sought and ends when their applications are submitted. Though theoretically recruitment process is said to end with the receipt of applications, in practice, the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. The result is a pool of applicants from which selections for new employees are made.”

PURPOSE AND IMPORTANCE
1. To broad base the applicant pool in order to get the right talent at the affordable cost.
2. Increase the pool of job candidates at minimum cost
3. Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications.
4. Meet legal and social obligations
5. Identify and prepare potential job applicants

FACTORS AFFECTING RECRUITMENT
External Factors:
1. Demand and Supply status of specific skills set.
2. Unemployment Rate (Area-wise)
3. Labour Market Conditions
4. Political and Legal Environment (Reservations, Labour laws)
5. Company’s Image

Internal Factors:
1. Recruitment Policy (Internal Hiring or External Hiring?)
2. Human Resource Planning (Planning of resources required)
3. Size of the Organization (Bigger the size lesser the recruitment problems)
4. Cost
5. Growth and Expansion Plans
RECRUITMENT PROCESS
1. Recruitment Strategy Development
(a) Trained or untrained (to be trained at company’s expense)
(b) Internal or external sourcing
Internal Recruitment (Source 1)
(i) Present employees
(ii) Employee referrals
(iii) Transfers & Promotions
(iv) Former Employees
(v) Previous Applicants
External Recruitment (Source 2)
(i) Professionals or Trade Associations
(ii) Advertisements
(iii) Employment Exchanges
(iv) Campus Recruitment
(v) Walk-ins Interviews
(vi) Consultants
(vii) Contractors
(viii) Displaced Persons
(ix) Radio & Television
(x) Acquisitions & Mergers
(c) Competitors
(d) Technological tools to be used for advertising
(e) Where to look
(f) How to look
2. Recruitment Planning
(a) Number of applicants sought (Based on past experience)
(b) Types of applicants to be called (Qualification, category, area, etc)
3. Searching
(a) Source activation
(b) Selling
4. Screening of Applications
5. Evaluation and Cost Control
(a) Salary Cost
(b) Management & Professional Time spent
(c) Advertisement Cost
(d) Producing Supporting literature
(e) Recruitment Overheads and Expenses
(f) Cost of Overtime and Outsourcing
(g) Consultant’s fees
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Re: Notes, projects, reference material etc
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DK 2424
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dk2424
Account Manager - BD at UPS Supply Chain Solution India Pvt Ltd
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Re: Notes, projects, reference material etc - August 9th, 2008

Recruitment and Selection

Theoretically speaking, Recruitment and Selection are 2 separate functions. Recruitment deals with the forming a pool of applicants for a particular job, whereas Selection deals with finding the best one of the lot.

MEANING AND DEFINITION
In simple terms, recruitment is understood as the process of searching for and obtaining applicants for jobs, from among whom the right people can be selected. A formal definition of recruitment is:
“It is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.”

PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Specifically, the purposes are to:

 Determine the present and future requirements of the organization in conjunction with its personnel planning and job analysis activities
 Increase the pool of job candidates at minimum cost
 Help increase the success rate of the selection process by reducing the number of visibly, under qualified or overqualified job applicants
 Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time
 Meet the organizations legal and social obligations regarding the composition of its workforce
 Begin identifying and preparing potential job applicants who will be appropriate candidates
 Increase organizational and individual effectiveness in the short term and long term
 Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants

Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventually decide whether they wish to work for it. A well-planned and well-managed recruiting effort will result in high-quality applicants, whereas, a haphazard and piecemeal effort will result in mediocre ones. High-quality employees cannot be selected when better candidates do not know of job openings, are not interested in working for the company, and do not apply. The recruitment process should inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants can make comparisons with their qualifications and interests, and generate enthusiasm among the best candidates so that they will apply for the vacant positions.

RECRUITMENT PLANNING

The first stage in the recruitment process is Recruitment Planning.
Planning involves ht e translation of likely job vacancies and information about the nature of these jobs into a set of objectives or targets that specify the
(i) Number and
(ii) Type of applicants to be contacted.

Number Of Contacts
Organisations, nearly always, plan to attract more applicants than they will hire. Some of those contacted will be uninterested, unqualified, or both. Each time a recruitment programme is contemplated, one task is to estimate the number of applicants necessary to fill all vacancies with qualified people.
Companies calculate yield ratios (yRs), which express the relationship of applicant inputs to outputs at various decision points. For example, assume that an organisation attempting to recruit sales people ran a series of newspaper advertisements. The advertisement generated resumes from 2000 applicants, of which 200 were judged to be potentially qualified (yR = 10:1). Of these 200, 40 attended the interview for final selection (yR = 5:1). Of these 40, 30 were actually qualified and offered jobs (yR = 4:3); and of the 30, 20 accepted (yR = 3:2). In this case, the overall yR is 100:1. Thus, a requirement of 30 hires, during a specified period, would mean a recruitment target of 3000.
The yRs must be used with circumspection. No yRs will be available for recruiting employees for the first time, or for recruiting sources or methods that have not been tried. Recruiters in such cases have to depend upon their counterparts in other organisations or make their own guesses.

Type Of Applicants to be contacted
This refers to the type of people to be informed about job openings. The type of people depends on the tasks and responsibilities involved and the qualifications and experience expected. These details are available through job description and job specification.



EVALUATION AND CONTROL OF RECRUITMENT

Evaluation and control is necessary as considerable costs are incurred in the recruitment process. The costs generally incurred are:
 Salaries for recruiters.
 Management and professional time spent on preparing job description, job specifications, advertisements, agency liaison, and so forth.
 The cost of advertisements of other recruitment methods, that is, agency fees.
 Cost of producing supportive literature.
 Recruitment overheads and administrative expenses.
 Costs of overtime and outsourcing while the vacancies remain unfilled.
 Cost of recruiting unsuitable candidates for the selection process.
Questions should always be asked as to whether the recruitment methods used are valid and whether the recruitment process itself is effective.
Statistical information on the cost of advertisements, time taken for the process, and the suitability of the candidates for consideration in the selection process should be gathered and evaluated. However, exercises seem to be seldom carried out in practise.

Evaluation of Recruitment Process
The recruitment process has the objective of searching for and obtaining applications from job-seekers in sufficient numbers and quality. Keeping this objective in mind, the evaluation might include:
 Return rate of applications sent out.
 Number of suitable candidates for selection.
 Retention and performance of the candidates selected.
 Cost of the recruitment process.
 Time lapsed data.
 Comments on image projected.

Evaluation of Recruitment Methods
The evaluation of recruitment methods might include:
 Number of initial enquiries received which resulted in completed application forms.
 Number of candidates at various stages of the recruitment and selection process, especially those short listed.
 Number of candidates recruited.
 Number of candidates retained in the organisation after six months.







Philosophy of Recruiting:

The traditional philosophy of recruiting has been to get as many people to apply for a job as possible. A large number of jobseekers waiting in queues would make the final selection difficult, often resulting in wrong selections. Job dissatisfaction and employee turnover are the consequences of this.
A persuasive agreement can be made that matching the needs of the organisation to the needs of the applicants will enhance the effectiveness of the recruitment process. The result will be a workforce which is likely to stay with the organisation longer and performs a higher level of effectiveness. Two approaches are available to bring about this match.
1. Realistic Job Previews (RJP):
RJP provide complete job-related information, both positive and negative, to the applicants. The information provided will help jobseekers to evaluate the compatibility among the jobs and their personal ends before hiring decisions are made. RJP's can result in self-selection process - job applicants can decide whether to attend the interviews and test for final selection or withdraw themselves in the initial stage. The following table contracts some of the outcomes that can develop from traditional and realistic job previews.

Research on realistic recruiting shows a lower rate of employee turnover in case of employees recruited through RJP's, particularly for more complex jobs and higher levels of job satisfaction and performance, at the initial stages of employment. RJP's are more beneficial for organisations hiring at the entry level., when there are innumerable applicants per position, and under conditions of relatively low employment. Otherwise, the approach may increase the cost of recruiting by increasing the average time it takes to fill each job.

2. Job Compatibility Questionnaire (JCQ):
JCQ was developed to determine whether an applicant's preferences for work match the characteristics of the job. The JCQ is designed to collect information on all aspects of a job, which have a bearing on employee performance, absenteeism, turnover and job satisfaction. The underlying assumption of the JCQ is that the greater the compatibility between an applicant's preferences for a job and the probability f employee effectiveness and longer the tenure.
The JCQ is a 400-tem instrument that measures job factors that are related to performance, satisfaction, turnover and absenteeism. Items cover the following job factors: task requirements, physical environment, customer characteristics, peer characteristics, leader characteristics, compensation preferences, task variety, job autonomy, physical demands, and work schedule.
The JCQ is administered to jobseekers who are very familiar with either a specific position to be filled and/or a target job under study. Respondents are asked to indicate the extent to which each JCQ item is descriptive of the job or position under study.


Recruitment process

Recruitment is a process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. A well-planned and well-managed recruiting effort will result in high quality applicants, whereas a haphazard and piecemeal effort will result in a mediocre once. Several factors such as external factors like supply an demand unemployment rate, labour markets and political and legal considerations, internal factors like recruiting policy, size, cost of recruiting etc govern the recruiting process.

The process comprises of 5 inter related stages: -
1. Planning
2. Strategy development
3. Searching
4. Screening
5. Evaluation and control


I Planning

The first stage in recruitment process is planning. Planning involves translation of likely job vacancies and information about the nature of these jobs into a set of objectives or targets that specify the number and the type of applicants to be contacted.
Number of contacts: organisations always plan to attract more applicants than they plan to hire. Some of those contacted will be uninterested unqualified or both. Each time a recruitment process is contemplated, one task is to estimate the number of applicants necessary to fill all the vacancies with qualified people.
Type of contacts: this refers to the type of people to be informed about the job openings. The types of people depend on the tasks and responsibilities involved and the qualifications and experience expected. These details are available through job description and job specification.

II Strategy development

Once it is known how many and what type of recruits are required, consideration needs to be given to make or buy employees, technical sophistication of recruitment and selection devices, geographic distribution of labour markets comprising job seekers, sources of recruitment, and sequencing the activities in the recruitment process.
Make or buy refers to hire less skilled employees ad to invest in training and education programmes or hire skilled professionals. The second decision in strategic relates to the methods used in recruitment and selection. The advent of computers has made it possible for employers to scan national and international applicants qualifications. It has also made possible for job seekers to gain better access. In order to reduce costs, companies look into the national markets for managerial employees, regional or local markets for technical employees, and local markets for clerical and blue-collar employees.
The sources for recruitment may be internal or external. The internal sources would be present employees, referrals given by the employees, former employees or previous applicants. Whereas the external sources would be consultants, headhunters, advertisements, employee exchanges, campus recruitment, contractors, displaced persons, radio and television, acquisitions and mergers, competitors, international recruitment etc. then both the sources of recruitment are evaluated. Both have their own advantages and disadvantages.

III Searching

Once a recruitment plan and strategy are worked out, the search process can begin. It involves two steps:
1. Source aviation
2. Selling

1. Source Aviation:
Typically sources and search methods are activated by issuances of an employee requisition. This means that no actual recruiting takes place until line managers have verified that a vacancy does exist or will exist. If the organisation has planned well and done a good job of developing its sources and search methods, activation soon results in a flood of applications and/or resumes. The application received must be screened. Those who pass have to be contacted, and invited for interview. Unsuccessful applicants must be sent letters of regret.

2. Selling
The second issue to be addressed in the searching process concerns communication. Here, contacts are tightrope. On tone hand they want as many applications and on the other hand they must resist overselling of their virtues. In selling the organisation both message and the media need attention. Selection of medium or media has to be done with lot of care.

IV Screening

Screening of applicants can be regarded as an integral part of recruiting process. The selection process will begin after the applicants have been scrutinized and short-listed. Applications received in response to advertisement are screened and only the eligible applicants are called for interview.
The purpose of screening is to remove from the recruiting process, at an early stage those applicants who are visibly unqualified for the job. Effective screening can save a great deal of time and money. Care must be taken that potentially good employees are not lost and women and minorities receive full and fair consideration.
In screening, clear job specifications are invaluable. Applications are judged on the basis of their knowledge, skills, abilities, and interests required to do the job. The techniques used to screen applicants vary depending on the candidate sources and recruiting methods used. Interviews and application blanks are used to screen walk ins. Campus recruiters and agency representative’s use in interviews and resumes. References checks are also useful in screening.

V Evaluation and control

Evaluation and control is necessary as considerable costs are incurred in the recruitment process. The costs generally incurred are

 Salaries for recruiters
 Management and professional time spent on preparing job description, job specification, advertisements, agency liaison, and so forth
 The cost of advertisement and other recruitment methods like agency fees
 Cost of producing supporting literature
 Recruitment overheads and administrative expenses
 Cost of overtime and outsourcing while the vacancies are remain unfilled
 Cost of recruiting unsuitable candidates for selection process

Questions should always be asked as to whether the recruitment methods used are valid and whether the recruitment process itself is valid. Statistical information on the cost of advertisements, time taken for the process etc should be gathered and evaluated. However, exercises seem to be seldom carried out in practice.

Evaluation of recruitment process:
The recruitment process has the objective of searching for and obtaining applications from job seekers in sufficient numbers and quality. Keeping in mind these objectives, the evaluation might include:

 Return rate of application sent out
 Number of suitable candidates for selection
 Retention and performance of the candidates selected
 Cost of recruitment process
 Time lapsed data
 Comments on image projected


Evaluation of recruitment methods:
The evaluation of recruitment methods include:
 Number of initial inquiries received which resulted in completed application forms.
 Number of candidates at various stages of the recruitment and selection process, especially those short-listed.
 Number of candidates recruited
 Number of candidates retained in the organization after six months.

Role of Selection (Selection Policy).

Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of selection is

“It is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job.”

The role of selection in an organization’s effectiveness is crucial for at least, two reasons. First, work performance depends on individuals. The best way to improve performance is to hire people who have the competence and the willingness to work. Arguing from the employee's viewpoint, poor or inappropriate choice can be demoralizing to the individual concerned (who finds himself or herself in the wrong job) and demotivating to the rest of the work-force. Effective selection, therefore, assumes greater relevance.
Second, cost incurred in recruiting and hiring personnel speaks volumes about the role of selection. Here is one instance to prove how expensive recruitment has become. Pepsi had gone on a crash recruitment drive. Six people from the company took over the entire Oberoi Business Center in Bombay for six days. 3000 applications in response to an advertisement issued earlier were scanned, applicants were asked to respond by fax within 100 hours. Finally, the short-listed persons were flown in and interviewed. Quite an expensive affair by any standard!


Success

Failure


Failure Success
Predicted Predicted

Outcomes of the Selection Process

Costs of wrong selection are much greater. The figure shows four possible outcomes of a selection decision. Two of these—'true positive' ('high hit') and 'true negative' (low hit')—are right selection decisions. The other two out-comes represent selection errors. In the 'false positive error', a decision is made to hire an applicant based on predicted success, but failure results. In 'false negative error', an applicant who would have succeeded is rejected based on predictions of failure. In either case, selectors will have erred. They may remember that the selection successes will be written in sand and failures in stone.
An organization with a false positive error incurs three types of costs. The First type is incurred while the person is employed. This can be the result of production or profit losses, damaged company reputation, accidents due to negligence, absenteeism, and the like. The second type of costs is associated with the training, transfer or terminating the services of the employee. Costs of replacing an employee with a fresh one—costs of hiring, training and replacements—constitute the third type of costs. Generally, the more important the job, the greater the cost of the selection error.
In the case of false negative error, an applicant who would have succeeded is rejected because of predicted failure. Most false negative errors go unnoticed except when the applicant belongs to a reserved category and files a discrimination charge. Costs associated with this type of error are generally difficult to estimated
A careful selection will help an organization avoid costs associated with both false positive error as well as false negative error.

Explain the selection process

Selection is the process of picking individuals with requisite qualifications and competence to fill jobs in the organization. A formal definition of selection is it is the process of differentiating between applicants in order to identify those with a greater likelihood of success.
Selection is significant as it has its impact on work performance and employee cost. Selection is generally done by the HR department often in consultation with the line managers.

Selection Process

Selection is a long process, commencing from the preliminary interview of the applicants and ending with the contract of employment. In practice, the process differs among organizations and between two different jobs within the same organization. Selection procedure for senior managers will be long-drawn and rigorous, but it is simple and short while hiring shop-floor workers.

Environmental Factors Affecting Selection

Selection is influenced by several factors. More prominent among them are supply and demand of specific skills in the labour market, unemployment rate, labour-market conditions, legal and political considerations, company’s image, company’s policy, HRP, and cost of hiring. The last three constitute the internal environment and the remaining form the external environment of the selection process.

1. Preliminary Interview
The applications received from job seekers are subject to scrutiny so as to eliminate unqualified applicants. This is usually followed by a preliminary interview the purpose of which is more or less the same as scrutiny of applications, that is, elimination of unqualified applications. Scrutiny enables the HR specialists to eliminate unqualified jobseekers based on the information supplied in their applications forms. Preliminary interview, on the other hand, helps reject misfits for reasons, which did not appear in the application forms. Besides, preliminary interview, often called ‘courtesy interview’, is a good public relations exercise.

2. Selection Tests
Job seekers who pass the screening and the preliminary interview are called for tests. Different types of tests may be administered, depending on the job and the company. Generally, tests are used to determine the applicant’s ability, aptitude and personality. Ability tests assist in determining how well an individual can perform tasks related to the job. An excellent example of this is the typing test given to a prospective employee for a secretarial job. An aptitude test helps to determine a person’s potential to learn in a given area. An example of such a test is the General Management Aptitude Test which many business students take prior to gaining admission to a graduate business school programme.

Personality tests are given to measure a prospective employee’s motivation to function in a particular working environment.
There are various tests designed to assess a candidate’s personality. The Bersenter Personality Inventory, for example, measures one’s self-sufficiency, neurotic tendency, sociability, introversion and extroversion, locus of control, and self-confidence. The Thematic Apperception test (TAT) assesses an individual’s achievement and motivational levels. Other personality tests, such as the California Psychological Inventory (CPI), the Thurstone Temperament Survey (TTS), Minnesota Multiphasic Personality Inventory (MMPI), and Guildford-Zimmerman Temperament Survey, have been designed to assess specific personality traits.
Aptitude tests indicate the ability or fitness of an individual to engage successfully in any number of specialized activities. They cover such areas as clerical aptitude, numerical aptitude, mechanical aptitude, motor-coordination, finger dexterity and manual dexterity.
Interest tests are used to measure an individual’s activity preferences. These tests are particularly useful for students considering many careers or employees deciding upon career changes.
Graphology test is designed to analyse the handwriting of an individual. It has been said that an individual’s handwriting can suggest the degree of energy, inhibitions and spontaneity, as well as disclose the idiosyncracies, and elements of balance and control. For example, big letters and emphasis on capital letters indicate a tendency towards domination and competitiveness. A slant to the right, moderate pressure and good legibility show leadership potential. Employers usually consult graphologists to supplement their usual personnel recruitment procedures. Polygraph tests are designed to ensure accuracy of the information given in the applications. Department stores, treasury offices and jewellery shops – that is those highly vulnerable to theft or swindling – may find polygraph tests useful.

3. Employment Interview
The next step in the selection process is employment interview. An interview is conducted at the beginning and at the end of the selection process. The emphasis here is on the latter.
Interview is a formal, in-depth conversation conducted to evaluate the applicant’s acceptability. It is considered to be an excellent selection device. Its popularity stems from its flexibility. Interview can be adapted to unskilled, skilled, managerial and professional employees. It allows a two-way exchange of information, the interviewers learn about the applicant, and the applicant learns about the employer.
However, interviews do have shortcomings. Absence of reliability is one limitation. No two interviewers offer similar scoring after interviewing an applicant. Lack of validity is another limitation. This is because, few departments use standardized questions upon which validation studies can be conducted. Finally, biases of interviewers may cloud the objectivity of interviews.
The employment interview can be one-to-one, sequential or panel. In one-to-one interview, there are only two participants – the interviewer and the interviewee. This can be the same as the preliminary interview discussed earlier. The sequential interview takes the one-to-one a step further and involves a series of interviews, usually utilizing the strength and knowledge-base of each interviewer, so that each interviewer can ask questions in relation to his subject area of each candidate, as the candidate moves from room to room.
The panel interview consists of two or more interviewers and the figure may go up to as many as 15. Any panel interview is less intimate and more formal than the one-to-one, but if handled and organized well, it can provide a wealth of information. If not handled carefully, the panel interview can make the candidate feel ill at ease and confused about whose question to answer and whom to address. Interviewers themselves are likely to experience nightmare, not knowing who will ask which question and in what order.

4. Reference & Background Checks
Many employers request names, addresses, and telephone numbers of references, for the purpose of verifying information and perhaps, gaining additional background information on an applicant. Although listed on the application form, references are not usually checked until an applicant has successfully reached the fourth stage of a sequential selection process. When the labour market is very tight, organizations sometimes hire applicants before checking references.
Previous employers, known public figures, university professors, neighbours or friends can act as references. Previous employers are preferable because they are already aware of the applicant’s performance. But, the problem with the reference is the tendency on the part of the previous employer to over-rate the applicant’s performance just to get rid of the person.
Organizations normally seek letters of references or telephone references. The latter is advantageous because of its accuracy and low cost. The telephone reference also has the advantage of soliciting immediate, relatively candid comments, and attitudes can sometimes be inferred from hesitations and inflections in speech.
It may be stated that the information gathered through references hardly influence selection decisions. The reasons are obvious:

• The candidate approaches only those persons who would speak well about him.
• People may write favourably about the candidate in order to get rid of him.
• People may not like to divulge the truth about a candidate, lest it might damage or ruin his career.

In several cases, references are a formality and are seldom verified by the employer.

5. Selection Decision
After obtaining information through the preceding steps, selection decision – the most critical of all the steps – must be made. The other stages in the selection process have been used to narrow the number of candidates. The final decision has to be made from the pool of individuals who pass the tests, interviews and reference checks.
The views of the line manager will be generally considered in the final selection because it is he who is responsible for the performance of the employee. The HR manager plays a critical role in the final selection.

6. Physical Examination
After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. A job offer is, often, contingent upon the candidate being declared fit after the physical examination. The results of the medical fitness test are recorded in a statement and are preserved in the personnel records. There are several objectives behind a physical test. Obviously, one reason for a physical test is to detect if the individual carries any infectious diseases. Secondly, the test assists in determining whether an applicant is physically fit to perform the work. Third, the physical examination information may be used to determine if there are certain physical capabilities which differentiate successful and less successful employees. Fourth, medical check-up protects applicants with health defects from undertaking work that could be detrimental to themselves or might otherwise endanger the employer’s property. Finally, such an examination will protect the employer from workers’ compensation claims that are not valid because the injuries or illnesses were present when employee was hired.


7. Job Offer
The next step in the selection process is job offer to those applicants who have crossed all the previous hurdles. Job offer is made through a letter of appointment. Such a letter generally contains a date by which the appointee must report on duty. The appointee must be given reasonable time for reporting. This is particularly necessary when he is already in employment, in which case the appointee is required to obtain a relieving certificate from the previous employer. Again, a new job may require movement to another city which means considerable preparation and movement of property.
The company may also want the individual to delay the date of reporting on duty. If the new employee’s first job upon joining the company is to go on training, the organization may request that the individual delays joining the company until perhaps a week before such training begins. Naturally this practice cannot be abused especially if the individual is unemployed and does not have sufficient finances.
Decency demands that the rejected applicants be informed about their non-selection. Their applications may be preserved for future use, if any. It needs no emphasis that the applications of selected candidates must also be preserved for future references.

8. Contracts of Employment
After the job offer has been made and the candidates accept the offer, certain documents need to be executed by the employer and the candidate. One such document is the attestation form. This form contains certain vital details about the candidate which are authenticated and attested by him. Attestation form will be a valid record for future reference. There is also a need for preparing a contract of employment. The basic information that should be included in a written contract of employment will vary according to the level of the job, but the following checklist sets out the typical headings.

 Job Title
 Duties, including a phrase such as “The employee will perform such duties and will be responsible to such a person as the company may from time to time direct.”
 Date when continuous employment starts and the basis for calculating service
 Rate of pay, allowances, overtime and shift rates, method of payments
 Hours of work including lunch break and overtime and shift arrangements
 Holiday arrangements
 Length of notice due to and from employee
 Grievance procedure
 Disciplinary procedure
 Work Rules
 Arrangements for terminating employment
 Arrangements for union membership
 Special terms relating to rights to patents and designs, confidential information and restraints on trade after termination of employment
 Employer’s right to vary terms of the contract subject to proper notification being given

Alternatively called employment agreements or simply bonds, contracts of employment serve many useful purposes. Such contracts seek to restrain job hopers, to protect knowledge and information that might be vital to a company’s health bottom line, and to prevent competitors from poaching highly valued employees.
Great care is taken to draft the contract forms. Often, services of law firms are engaged to get the forms drafted and finalized.
Most employers insist on agreements being signed by newly hired employees. But high employee turnover sectors such as software, advertising and media are more prone to use such contracts.
The drawback with the contracts is that it is impossible to enforce them. A determined employee is bound to leave the organization, contract or no contract. The employee is prepared to pay the penalty for breaching the agreement or the new employer will provide compensations. It is for this reason that several companies have scrapped the contracts altogether. Lintas and Ogilvy and Mather are examples.

Concluding the Selection Process
Contrary to popular perception, the selection process will not end with executing the employment contract. There is another step – a more sensitive one- reassuring those candidates who have not been selected. Such candidates must be told that they were not selected not because of any serious deficiencies in their personalities, but because their profiles did not match the requirements of the organization. They must be told that those who were selected were done purely on relative merit.

9. Evaluation of the Selection Programme
The broad test of the effectiveness of the selection process is the quality of the personnel hired. An organization must have competent and committed personnel. The selection process if properly done will ensure availability of such employees. How to evaluate the effectiveness of a selection programme? A periodic audit is the answer. Audit must be conducted by people who work independent of the HR department.
Two alternative methods of selection are participative selection and employee leasing. In participative selection, subordinates participate in selection of their co-employees. Employee leasing represents the leasing of employees by a client company from a third party.


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Re: Notes, projects, reference material etc - August 9th, 2008

What are the Sources of Recruitment.

The sources of recruitment can be broadly categorized into internal and external sources-

(I) Internal Recruitment – Internal recruitment seeks applicants for positions from within the company. The various internal sources include

a. Promotions and Transfers –
Promotion is an effective means using job posting and personnel records. Job posting requires notifying vacant positions by posting notices, circulating publications or announcing at staff meetings and inviting employees to apply. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels. Promotions has many advantages like it is good public relations, builds morale, encourages competent individuals who are ambitious, improves the probability of good selection since information on the individual’s performance is readily available, is cheaper than going outside to recruit, those chosen internally are familiar with the organization thus reducing the orientation time and energy and also acts as a training device for developing middle-level and top-level managers. However, promotions restrict the field of selection preventing fresh blood & ideas from entering the organization. It also leads to inbreeding in the organization. Transfers are also important in providing employees with a broad-based view of the organization, necessary for future promotions.

b. Employee referrals-
Employees can develop good prospects for their families and friends by acquainting them with the advantages of a job with the company, furnishing them with introduction and encouraging them to apply. This is a very effective means as many qualified people can be reached at a very low cost to the company. The other advantages are that the employees would bring only those referrals that they feel would be able to fit in the organization based on their own experience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfill social obligations and create goodwill.

c. Former Employees-
These include retired employees who are willing to work on a part-time basis, individuals who left work and are willing to come back for higher compensations. Even retrenched employees are taken up once again. The advantage here is that the people are already known to the organization and there is no need to find out their past performance and character. Also, there is no need of an orientation programme for them, since they are familiar with the organization.


d. Dependents of deceased employees-
Usually, banks follow this policy. If an employee dies, his / her spouse or son or daughter are recruited in their place. This is usually an effective way to fulfill social obligation and create goodwill.

(II) External Recruitment – External recruitment seeks applicants for positions from sources outside the company. They have outnumbered the internal methods. The various external sources include

a. Professional or Trade Associations –
Many associations provide placement service to its members. It consists of compiling job seeker’s lists and providing access to members during regional or national conventions. Also, the publications of these associations carry classified advertisements from employers interested in recruiting their members. These are particularly useful for attracting highly educated, experienced or skilled personnel. Also, the recruiters can zero on in specific job seekers, especially for hard-to-fill technical posts.

b. Advertisements -
It is a popular method of seeking recruits, as many recruiters prefer advertisements because of their wide reach. Want ads describe the job benefits, identify the employer and tell those interested how to apply. Newspaper is the most common medium but for highly specialized recruits, advertisements may be placed in professional or business journals.
Advertisements must contain proper information like the job content, working conditions, location of job, compensation including fringe benefits, job specifications, growth aspects, etc. The advertisement has to sell the idea that the company and job are perfect for the candidate. Recruitment advertisements can also serve as corporate advertisements to build company’ image. It also cost effective.

c. Employment Exchanges-
Employment Exchanges have been set up all over the country in deference to the provision of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959. The Act applies to all industrial establishments having 25 workers or more each. The Act requires all the industrial establishments to notify the vacancies before they are filled. The major functions of the exchanges are to increase the pool of possible applicants and to do the preliminary screening. Thus, employment exchanges act as a link between the employers and the prospective employees. These offices are particularly useful to in recruiting blue-collar, white collar and technical workers.

d. Campus Recruitments-
Colleges, universities, research laboratories, sports fields and institutes are fertile ground for recruiters, particularly the institutes. Campus Recruitment is going global with companies like HLL, Citibank, HCL-HP, ANZ Grindlays, L&T, Motorola and Reliance looking for global markets. Some companies recruit a given number of candidates from these institutes every year. Campus recruitment is so much sought after that each college; university department or institute will have a placement officer to handle recruitment functions. However, it is often an expensive process, even if recruiting process produces job offers and acceptances eventually. A majority leave the organization within the first five years of their employment. Yet, it is a major source of recruitment for prestigious companies.

e. Walk-ins, Write-ins and Talk-ins-
The most common and least expensive approach for candidates is direct applications, in which job seekers submit unsolicited application letters or resumes. Direct applications can also provide a pool of potential employees to meet future needs. From employees’ viewpoint, walk-ins are preferable as they are free from the hassles associated with other methods of recruitment. While direct applications are particularly effective in filling entry-level and unskilled vacancies, some organizations compile pools of potential employees from direct applications for skilled positions. Write-ins are those who send written enquiries. These jobseekers are asked to complete application forms for further processing. Talk-ins involves the job aspirants meeting the recruiter (on an appropriated date) for detailed talks. No application is required to be submitted to the recruiter.

f. Contractors-
They are used to recruit casual workers. The names of the workers are not entered in the company records and, to this extent; difficulties experienced in maintaining permanent workers are avoided.

g. Consultants-
They are in the profession for recruiting and selecting managerial and executive personnel. They are useful as they have nationwide contacts and lend professionalism to the hiring process. They also keep prospective employer and employee anonymous. However, the cost can be a deterrent factor.

h. Head Hunters-
They are useful in specialized and skilled candidate working in a particular company. An agent is sent to represent the recruiting company and offer is made to the candidate. This is a useful source when both the companies involved are in the same field, and the employee is reluctant to take the offer since he fears, that his company is testing his loyalty.

i. Radio, Television and Internet-
Radio and television are used to reach certain types of job applicants such as skilled workers. Radio and television are used but sparingly, and that too, by government departments only. Companies in the private sector are hesitant to use the media because of high costs and also because they fear that such advertising will make the companies look desperate and damage their conservative image. However, there is nothing inherently desperate about using radio and television. It depends upon what is said and how it is delivered. Internet is becoming a popular option for recruitment today. There re specialized sites like naukri.com. Also, websites of companies have a separate section wherein; aspirants can submit their resumes and applications. This provides a wider reach.

j. Competitors-
This method is popularly known as “poaching” or “raiding” which involves identifying the right people in rival companies, offering them better terms and luring them away. For instance, several executives of HMT left to join Titan Watch Company. There are legal and ethical issues involved in raiding rival firms for potential candidates. From the legal point of view, an employee is expected to join a new organization only after obtaining a ‘no objection certificate’ from his/ her present employer. Violating this requirement shall bind the employee to pay a few months’ salary to his/ her present employer as a punishment. However, there are many ethical issues attached to it.

k. Mergers and Acquisitions-
When organizations combine, they have a pool of employees, out of whom some may not be necessary any longer. As a result, the new organization has, in effect, a pool of qualified job applicants. As a result, new jobs may be created. Both new and old jobs may be readily staffed by drawing the best-qualified applicants from this employee pool. This method facilitates the immediate implementation of an organization’s strategic plan. It enables an organization to pursue a business plan, However, the need to displace employees and to integrate a large number of them rather quickly into a new organization means that the personnel-planning and selection process becomes critical more than ever.

Evaluation Of External Recruitment
External sources of recruitment have both merits and demerits.

The merits are-
 The organization will have the benefit of new skills, new talents and new experiences, if people are hired from external sources.
 The management will be able to fulfill reservation requirements in favour of the disadvantaged sections of the society.
 Scope for resentment, heartburn and jealousy can be avoided by recruiting from outside.

The demerits are-
 Better motivation and increased morale associated with promoting own employees re lost to the organization.
 External recruitment is costly.
 If recruitment and selection processes are not properly carried out, chances of right candidates being rejected and wrong applicants being selected occur.
 High training time is associated with external recruitment.

METHODS AND TECHNIQUES OF TRAINING

A multitude of techniques are used to train employees. Training techniques represent the medium of imparting skills and knowledge to employees. Training techniques are means employed in the training methods. They are basically of two types.

Methods and Techniques of Training














1. Lectures: It is the verbal presentation of information by an instructor to a large audience. The lecturer is presumed to possess knowledge about the subject. A virtue in this method is that it can be used for large groups and hence the cost of training per employee is very low. However, this method violates the principle of learning by practice. Also this type of communication is a one-way communication and there is no feedback from the audience because in case of very large groups it is difficult to have interactive sessions. Long lectures can also cause Boredom.

2. Audio Visuals: This is an extension of the lecture method. This method includes slides, OHPs, video tapes and films. They can be used to provide a range of realistic examples examples of job conditions and situations in the condensed period of time. It also improves the quality of presentation to a great extent.

3. On- the – Job- Training: It is used primarily to teach workers how to do their present jobs. Majority of the industrial training is on the job training. It is conducted at the work site and in the context of the job. Often, it is informal, as when experienced worker shows a trainee how to perform tasks. In this method, the focus of trainer’s focus is on making a good product and not on good training technique. It has several steps, the trainee first receives an overview of the job, it’s purpose and the desired outcomes. The trainer then demonstrates how the job is to be performed and to give trainee a model to copy. And since a model is given to the trainee, the transferability to the job is very high. Then the employee is allowed to mimic the trainer’s example. The trainee repeats these jobs until the job is mastered.

4. Programmed Instruction (PI): In this method, training is offered without the intervention of the trainer. Information is provided to the employee in blocks, in form of books or through teaching machine. After going through each block of material, the trainee goes through a test/ answers a question. Feedback in the form of correct answers is provided after each response. Thus PI involves:
 Presenting questions, facts, and problems to the learner.
 Allowing the person to respond
 Providing feedback on the accuracy of the answers
 If the answers are correct, he proceeds to the next block or else, repeats the same.
However it is an impersonal method and the scope of learning is less as compared to other methods of training. Also the cost of preparing books, manuals and machinery is very high.

5. Computer Assisted Instruction (CAI): This is an extension of the PI method. In this method, the learner’s response determines the frequency and difficulty level of the next frame. This is possible thanks to the speed, memory and the data manipulation capabilities of the computer.

6. Simulation: It is any equipment or technique that duplicates as nearly as the possible the actual conditions encountered at the job. It is an attempt to create a realistic for decision-making. This method is most widely used in Aeronautical Industry.

7. Vestibule Training: This method utilizes equipment which closely resemble the actual ones used in the job. It is performed in a special area set aside for the purpose and not at the workplace. The emphasis is placed on learning skills than on production. It is however difficult to duplicate pressures and realities of actual situations. Even though the kind of tension or pressure may be the same but the employee know it is just a technique and not a real situation. Also the employees behave differently in real situations than in simulations. Also additional investment is required for the equipment.

8. Case study: It is a written description of an actual situation in the business, which provokes the reader to think and make decisions/ suggestions. The trainees read the case, analyse it and develop alternative solutions, select the best one and implement it. It is an ideal method to promote decision making skills. They also provide transference to an extent. They allow participation through dicussion. This is the most effective method of developing problem solving skills.
The method /approach to analysis may not be given importance. Many a times only the result at the end of the case may be considered and not the line of thinking to approach it. This is a major disadvantage since case studies must primarily be used to influence or mend the attitude or thinking of an individual.

9. Role Playing and Behavior Modeling: This method mainly focuses on emotional (human relation) issues than other ones. The essence is on creating a real life situation and have trainees assume parts of specific personalities (mostly interchanged roles of boss and subordinate to create empathy for one another). The consequence is better understanding of issues from the other’s point of view. Concept of Behavior Modeling:
 Fundamental psychological process by which new patterns of behavior can be acquired and existing ones can be altered.
 “ Vicarious process” learning takes place not by own experience but by observation or imagination of others’ action.
 It is referred to as “copying”, “observational learning” or “imitation” implying that it a behavior is learned or modified through observation of other’s experiences.
 This change may be videotaped and showed to the trainee and he can review and critique it.
 It also helps him see the negative consequences that result from not using the behavior as recommended.

10. Sensitivity Training: it uses small number of trainees usually less than 12 in a group. They meet with a passive trainer and get an insight into their own behavior and that of others. These meetings have no agenda and take place away from the workplace. The discussions focus on why participants behave the way they do and how others perceive them. The objective is to provide the participants with increased awareness of their own behavior, the perception of others about them and increased understanding of group process. Examples: Laboratory training, encounter groups. Laboratory training is a form of group training primarily used to enhance interpersonal skills. It can be used to develop desired behaviors for future job responsibilities. A trained professional serves as a facilitator. However once the training is over employees get back to being the way they are.

11. Apprenticeships and Coaching: It is involved learning from more experienced employee/s. This method may be supplemented with other off-the-job methods for effectiveness. It is applied in cases of most craft workers, carpenters, plumbers and mechanics. This approach uses high levels of participation and facilitates transferability. Coaching is similar to apprenticeships. But it is always handled by a supervisor and not by the HR department. The person being trained is called understudy. It is very similar to on the job training method. But in that case, more stress is laid on productivity, whereas here, the focus is on learning.
In this method skilled workforce is maintained – since the participation, feedback and job transference is very high. Immediate returns can be expected from training – almost as soon as the training is over the desired outcomes can be seen in the trainee.


JOB DESCRIPTION:

Job description is an important document, which is basically descriptive in nature and contains a statement of job analysis. It provides both, organizational information (location in structure, authority, etc) and functional information (what the work is). It defines the scope of job activities, major responsibilities, and positioning of the job in the organization. It provides the worker, analyst and a supervisor with a clear idea of what the work must do to meet the demands of the job.
It concerns such functions as planning, coordinating and assigning responsibility. Though job description is not assessment, it provides an important basis for establishing assessment standards and objectives.
Job description describes “jobs” and not the “job holders”. The movement of employees due to promotion, quits, etc would create instability to job descriptions if people rather than jobs are described.

JOB SPECIFICATION:

The job specification takes the job description and answers the question, “what human traits and experience are needed to do the job well?” It tells what kind of person to recruit and for what qualities that person should be tested.
Job specifications translate the job description into terms of the human qualifications that are required for a successful performance of a job. They are intended to serve as a guide in hiring and job evaluation. As a guide in hiring, they deal with such characteristics as are available in an application bank, with testing interviews and checking of references.
Job specification is developed with the cooperation of the personnel department and various supervisors in the whole organization. The personnel department co ordinates the writing of the job descriptions and job specifications and secures agreement on the qualifications required. These specifications relate to physical characteristics, psychological characteristics, personal characteristics, responsibilities and other features of a demographic nature.

PERFORMANCE APPRAISAL:
A performance appraisal is a process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employees, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.
Several methods and techniques of appraisal are available for measuring the performance of an employee. Some of the traditional methods are
 Straight Ranking Method
 Man-to-man Comparison Methods
 Grading
 Graphic Rating Scales
 Check Lists
Following are some of the modern methods:
 Assessment Centers
 Appraisal by Results or Management by Objectives
 Human Asset Accounting Method

We will briefly discuss one of the modern methods of appraisal

Assessment centers:
The most important feature of assessment center is job-related simulations. These simulations involve characteristics that managers feel are important to the job success. The evaluators observe and evaluate participants as they perform activities.
Under this method, many evaluators join together to judge employee performance in several situations with the use of variety of criteria. It is used mostly to help select employees for the first level (lowest) supervisory positions. Assessments are made to determine employee potential for purposes of promotion. The assessment is generally done with the help of a couple of employees and involves a paper-and-pencil test, interviews and situational exercises.



























JOB ANALYSIS: An Important Employment Tool

Introduction:

All hiring decisions and supervisory evaluations should be made on objective criteria. A supervisor needs to know each job under his or her supervision, and the qualifications needed to perform it, to develop objective interview questions and objectively evaluate an employee’s performance. Human resource specialists who are responsible for initial screening of job applicants and mediating performance appraisal disputes must also understand the key components of the jobs in their organization.
Job analysis provides an objective basis for hiring, evaluating, training, accommodating and supervising persons with disabilities, as well as improving the efficiency of your organization. It is a logical process to determine: (1) purpose-the reason for the job, (2) essential functions-the job duties which are critical or fundamental to the performance of the job, (3) job setting-the work station and conditions where the essential functions are performed, and (4) job qualifications-the minimal skills an individual must possess to perform the essential functions. A job analysis describes the job, not the person who fills it.
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about data collected on a job.

Purpose of Job Analysis
1. To produce a basic job description of what the job is in the here and now which can facilitate basic human resource problem solving.
2. To describe duties and characteristics in common with and different form other positions or jobs. When pay is closely associated with levels of difficulty these descriptions help foster a feeling of organizational fairness related to pay issues.
The purpose of Job Analysis is thus to establish and document the 'job relatedness' of employment procedures such as training, selection, compensation, and performance appraisal.
Job Analysis should collect information on the following areas:
 Duties and Tasks (frequency, duration, complexity)
 Work Environment (risks)
 Tools and Equipment ( eg. protective clothing)
 Relationships ( internal and external)
 Requirements (The knowledge, skills, and abilities (KSA's)

Methods of Job Analysis/ Data Gathering methods
 Interviews – individual or group
 Questionnaire
 Observation
 Critical incidents
 Photo tape recording
 Review of records
JOB DESCRIPTION
Job description is an important document, which is basically descriptive in nature and contains a statement of job analysis. It provides both, organizational information (location in structure, authority, etc) and functional information (what the work is). It defines the scope of job activities, major responsibilities, and positioning of the job in the organization. It provides the worker, analyst and a supervisor with a clear idea of what the work must do to meet the demands of the job.

The content of job descriptions should identify and describe:
 Mental Functions
 Relations with Others
 Physical Demands (strength, movement, auditory, vision, etc.)
 Environmental Conditions and Physical Surroundings
 Equipment Used
 Hazards
It concerns such functions as planning, coordinating and assigning responsibility. Though job description is not assessment, it provides an important basis for establishing assessment standards and objectives.
Job description describes “jobs” and not the “job holders”. The movement of employees due to promotion, quits, etc would create instability to job descriptions if people rather than jobs are described.
Thus to sum it up all, Job descriptions, as a management tool, can greatly simplify an organization's human resource management.

JOB EVALUATION
The aim of job evaluation is to provide a systematic and consistent approach to defining the relative worth of jobs within a workplace, single plant or multiple site organization. It is a process whereby jobs are placed in a rank order according to overall demands placed upon the jobholder. It therefore provides a basis for a fair and orderly grading structure.
Job evaluation does not determine actual pay. That is a separate operation, normally the subject of negotiation between management and employees or their trade union representatives. Only the job is evaluated, not the person doing it. It is a technique of job analysis, assessment and comparison and it is concerned with the demands of the job, such as the experience and the responsibility required to carry out the job. It is not concerned with the total volume of work, the number of people required to do it, the scheduling of work, or the ability of the job holder.
Purpose of job evaluation
 It can be beneficial when the existing grading structure is in need of review.
 It can help establish or maintain the credibility and acceptability of a grading system.
 It facilitates the accommodation of new or revised jobs into the grading structure.
 It can be used by organisations as a basis for job matching and external pay comparisons.
 Improved Human Resource Management
In the past job evaluation has tended to be used more often for white collar, rather than manual employees. However, there has been a steady increase in the use of job evaluation for all types of jobs. The concern for unit labour costs makes it vitally important for organisations, operating in highly competitive markets, to ensure that the grading level of their employees accurately reflects the relative importance of their jobs to the organization.
Properly introduced and maintained, job evaluation can help lay the foundation of fair and orderly pay structures and thus improve relationships.
Techniques of job evaluation:
 Non-analytical
• Job ranking - Each job is considered as a whole and placed in a ‘felt fair’ rank order to produce a league table.
• Paired comparisons - Each job is compared as a whole with each other job in turn, and points (0, 1 or 2) awarded according to whether its overall importance is judged to be less than, equal to, or more than the other jobs.
• Job classification - In job classification the number of grades is decided first and detailed grade definitions produced. Representative (benchmark) jobs are evaluated to validate the definitions.
 Analytical
• Points rating – It breaks down each job into a number of factors, with the factors sometimes being further broken down into sub-factors. Points are awarded for each factor according to a predetermined scale and the total points decide a job’s place in the ranking order.
• Tailor made or “off the peg” - Factors and definitions more accurately reflect the range of jobs to be evaluated and are arrived at through consensus; consequently they are more likely to be acceptable to the workforce.
New Methods for Selection.

In recent years, new methods of selection have been found out by HR specialist these approaches are deemed to be alternatives to the traditional methods of selection.












1. Participative Selection

Two interesting alternative are participative selection and employee leasing. Participative selection means that subordinates participate in the selection of their co-workers and supervisors. The idea is that such participation will improve quality, increase support for the selected supervisor and co-workers, and improve employee morale.

2. Employee Leasing

In employee leasing, the client company leases employees from a third party, not on temporary basis, but rather are leased as full-time, long term help. An interesting feature of this method is that the client company need not perform such personnel activities as hiring, compensation or record keeping. Employees already working elsewhere are leased. They are not directly employed by the company where they are working. The advantages of employee leasing are significant. The client is relieved of many administrative burdens, as well as the need to employ specialized personnel employees. Further, employees not recruited by one client are sent to another client company for employment.


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Re: Notes, projects, reference material etc - August 9th, 2008

Training and Development
Q) Meaning and Definition
A business' most important asset is often its people. Training and developing them can be one of the most important investments a business can make. The right training can ensure that your business has the right skills to tackle the future. It can also help attract and retain good quality staff, as well as increasing the job satisfaction of those presently with you - increasing the chances that they will satisfy your customers.
Training and development refer to the imparting to specific skills’ ability and knowledge to an employee. A formal definition of training and development is:

“… it is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning, usually by changing the employee’s attitudes or increasing his or her skills and knowledge.”

The need for training and development is determined by the employee’s performance deficiency, computed as follows:
We can make a distinction among training, education and development. Such distinction enables us to acquire a better perspective about the meaning of the terms. Training, as was started earlier, refers to the process of imparting specific skills. Education, on the other hand, is confined to theoretical learning in the classrooms.
Development refers to those learning opportunities designed to help employees grow. Development is not primarily skill-oriented. Instead, it provides general knowledge and attitudes, which will be helpful to employees in higher positions. Efforts towards development often depend on personal drive and ambition. Development activities, such as those supplied by management development programmes, are generally voluntary.
(1) ORGANIZATIONAL OBJECTIVES AND STRATEGIES:
The first step in the training process in an organization is the assessment of its objectives and strategies. What business are we in? At what level of quality do we wish to provide this product or service? Where do we want to be in the future? It is only after answering these and other related questions that the organization must assess the strengths and weaknesses of its human resources.


(2) ASSESSMENT OF TRAINING NEEDS:
Organizations spend vast sums of money on training and development. Before committing such huge resources, organizations would do well to assess the training needs of the employees. Organizations that implement training programmes without conducting needs assessment may be making errors.

Needs assessment occurs at two levels:
a) Individual
b) Group

Individual:
An individual obviously needs training when his or her training falls short of standards, that is, when there is performance deficiency. Inadequacy in performance may be due to lack of skill or knowledge or any other problem. The problem of performance deficiency is caused by absence of skills or knowledge can be remedied by training. Faulty selection, poor job design, uninspiring supervision or some personal problem may also result in poor performance. Transfer, job redesign, improving quality of supervision, or discharge will solve the problem.
Individuals may also require new skills because of possible job transfers. Although job transfers are as common as organizational personal demands vary, they do not necessarily require elaborate training efforts. Employees commonly require an orientation to new facilities and jobs. Recently, however, economic forces have necessitated significant retraining efforts in order to assure continuous employment for many individuals.
Group:
Assessment of training needs occurs at group level too. Any change in the organization’s strategy necessitates training groups of employees. For example, when the organization decides to introduce a new line of products, sales personnel and production workers have to be trained to produce, sell and service the new products. Training can also be used when high scrap or accident rates, low morale and motivation, or other problems are diagnosed.

Needs Assessment Methods:
Several assessment methods for are available for assessing training needs. Some are useful for organizational level needs assessment and others for individual needs assessment.
Benefits of Needs Assessment:
Needs assessment helps diagnose the cause of performance deficiency of employees. Causes require remedial actions. There are specific benefits of needs assessment.
 Trainers may be informed about the broader needs of the training group and their sponsoring organizations.
 The sponsoring organizations are able to reduce the perception gap between the participant and his or her boss about their needs and expectations from the training programme.
 Trainers are able to pitch their course inputs closer to the specific needs of the participants.

(3) ESTABLISHMENT OF TRAINING GOALS:
Once the training needs are assessed, training and developmental goals must be established. With out clearly set goals, it is not possible to design a training and development programme and, after it has been implemented, there will be no way of measuring its effectiveness. Goals must be tangible, verifiable, and measurable. This is easy where skill training is involved. For example, the successful trainee will be expected to type 55 words per minute with two or three errors per page. But behavioral objectives like attitudinal changes can be more difficult to state. Nevertheless, clear behavioral standards of expected results are necessary so that the programme can be effectively designed and results can be evaluated.


(4) DEVISING THE TRAINING AND DEVELOPMENT PROGRAMME
1. Who are the trainees?
Trainees are selected on the basis of:
 Self Nomination
 Recommendations of the Supervisor
 By the HR Department itself
Whatever is the basis, it is advisable to have two or more target audiences. For example, rank-and-file employees and their supervisors may effectively learn together about a new process and their respective roles. It also helps facilitate group processes such as problem solving and decision – making.

2. Who are the trainers?
Training and development may be done by:
 Immediate Supervisors
 Co – workers
 Personnel Staff
 Specialists in other parts of the company
 Outside Consultants
 Industry Associations
 Faculty Members at Universities

Who among these are selected to teach, often depends on where the program is held and the skill that is being taught.

3. What Methods and Techniques of Training should be used?
A multitude of methods and techniques is used to train employees. Training techniques are the means employed in the training methods. Training methods are categorized into two groups – on-the-job methods and off-the-job methods. The most commonly used techniques are shown in the table given below.
 On-the-Job Method (OJT):
Majority of industrial training is on the job training type. OJT method is mainly adopted while orienting new employees, introducing innovations in products & services and in special skills training. OJT is conducted at the work site and in the context of the job. Often, it is informal, as when an experienced worker shows a trainee how to perform the job tasks.
 Off-the-Job Training Method:
Off-the-job training is mainly adopted for orienting new employees, introducing innovations in products and services, special skills training, safety education, creative, technical & professional education and sales, administrative, supervisory and managerial education. The advantages and disadvantages of some of the important techniques of off-the-job methods are listed below:
a) Lectures:
Lecture is a verbal presentation of information by an instructor to a large audience. This method can be made effective when combined with other means of training.
b) Audio-Visuals:
These include television slides, overheads, video-types, films and LCD Projectors.
c) Programmed Instruction (PI):
Training is offered without the intervention of the trainer. Information is provided to the trainee in blocks, either in a book form or through a teaching machine. PI involves:
1. Presenting questions, facts, or problems to the learner.
2. Allowing the person to respond.
3. Providing feedback on the accuracy of his or her answers.
4. If the answers are correct, the learner proceeds to the next block.
d) Simulations:
A simulator is any kind of equipment or technique that duplicates as nearly as possible the actual conditions encountered on the job. It is an attempt to create a realistic decision – making environment for the trainee. The advantage of simulation is the opportunity to ‘create an environment’ similar to real situations the managers incur, but without the high costs involved should the actions prove undesirable.

The other techniques of training are:
 Leadership games: exercises to teach different styles of leadership.
 Skill Games: Tests to develop analytical skills.
 Communication Games: exercises to build bias – free listening and talking.
 Strategic Planners: Games to test ability to plan ahead.
 Team – building games: Exercises requiring collaborative efforts.
 Lateral Thinking: thinking randomly to come up with new ideas.
 Cross – cultural training: Programmes to teach specifics of varied cultures.


4. What should be the level of learning?
The inputs passed on to trainees in training and development programmes can be taught at three basic levels.
All the inputs of training can be offered at the three levels. How effectively they are learned depends upon several principles of learning.

5. What should be the Principles of Learning?
Training and development programmes are more likely to be effective when they incorporate the following principles of learning:
 Motivation:
Motivation to learn is the basic requisite of making training and development programmes effective. Motivation comes from awareness that training fetches some rise in status and pay. Internal pressures (self-esteem, quality of life, job satisfaction) are the most powerful motivators. At the same time the individual must also have the ability to learn.
 Individual Differences:
Individuals enjoy varying learning stimuli. Ability varies from individual to individual and this difference must be considered while organizing training programmes.
 Practice Opportunities:
People learn best through practice. The trainee should be given the opportunity to practice what is being taught. Practice is also essential after the individual has been successfully trained.
 Reinforcement:
Reinforcement is anything that
a) Increases the strength of response
b) Tends to induce repetitions of the behavior that preceded the reinforcement.
Reinforcement could be positive and negative. Positive reinforcement strengthens and increases behavior by the presentation of desirable consequences. The reinforcement consists of a positive experience for the individual. Example: if an employee does something well and is complemented by the boss, the probability that the behavior will be repeated will be strengthened.
In negative reinforcement, the individual exhibits the desired behavior to avoid something unpleasant. Example: an employee who does something to avoid incurring a reprimand from his boss. The effect of negative reinforcement is avoidance of learning.
 Knowledge of Results (feedback):
Knowledge of results is a necessary condition for learning. Feedback about the performances will enable the learner to know where he or she stands and to initiate corrective action if any deviation from the expected goal has taken place.
 Goals:
Goal setting can also accelerate learning, particularly when it is accompanied by knowledge of results. Individuals generally perform better and learn more quickly when they have goals, particularly if the goals are specific and reasonably difficult.
 Schedules of learning:
One of the most well – established principles of learning is that distributed or spaced learning is superior to continuous learning.
Schedules of learning involve:
a) Duration of practice sessions
b) Duration of rest sessions
c) Positioning of rest pauses
All the three must be carefully planned and executed.
 Meaning of material:
A definite relationship has been established between learning and meaningfulness of the subject learnt. The more meaningful the material, the better the learning process.
 Transfer of Learning:
What is learnt in training must be transferred to the job. The traditional approach to transfer has been to maximize the identical elements between the training situation and the actual job. This may be possible for training skills such as maintaining a cash register, but not for teaching leadership or conceptual skills. Often, what is learnt in a training session faces resistance back at the job. Techniques for overcoming resistance include creating positive expectations on the part of trainee’s supervisor, creating opportunities to implement new behavior on the job, and ensuring that the behavior is reinforced when it occurs.
Though, it is desirable that a training and development programme incorporates all these principles, seldom is such a combination effected in practice.

6. Where to conduct the programme?
A training and development programme can be conducted:
i. At the job itself
ii. On site but not the job – for example, in a training room in the company.
iii. Off the site, such as in a university or college classroom, hotel, a resort, or a conference center.

(5) IMPLEMENTATION OF THE PROGRAMME:
Once the training programme has been designed, it needs to be implemented. Implementation is beset with certain problems:
a) Most managers are action oriented and frequently say they are too busy to engage in training efforts.
b) Availability of trainers is a problem. In addition to possessing communication skills, the trainers must know the company’s philosophy, its objectives, its formal and informal organizations, and the goals of the training programme. Training requires a higher degree of creativity than, perhaps, any other personnel specialty.
c) Scheduling training around the present work is another problem.

Programme implementation involves action on the following lines:
a) Deciding the location and organizing training and other facilities
b) Scheduling the training programme
c) Conducting the programme
d) Monitoring the progress of trainees

(6) EVALUATION OF THE PROGRAMME:
The last stage in the training and development process is the evaluation of results. Since huge sums of money are spent in training and development, how far the programme has been successful must be judged or determined. Evaluation helps determine the results of the training and development programme. In practice, however, organizations either overlook or lack facilities for evaluation.

Need for Evaluation:
The main objective of evaluating the training programmes is to determine if they are accomplishing specific training objectives, that is, correcting performance deficiencies. A second reason for evaluation is to ensure that any changes in trainee capabilities are due to the training programme and not due to any other conditions. Training programmes should be evaluated to determine their cost effectiveness. Evaluation is useful to explain programme failure, should it occur. Finally, credibility of training and development is greatly enhanced when it is proved that the organization has benefited tangibly from it.

Principles of Evaluation:
Evaluation of the training programme must be based on the following programmes:
a) Evaluation specialists must be clear about the goals and purpose of evaluation
b) Evaluation must be continuous
c) Evaluation must be specific
d) Evaluation must provide the means and focus for trainers to be able to appraise themselves, their practices, and their products.
e) Evaluation must be based on objective methods and standards.
f) Realistic target dates must be set for each face of the evaluation process. A sense of urgency must be developed, but deadlines that are unreasonably high will result in poor evaluation.
There are various approaches to training evaluation. To get a valid measure of training effectiveness, the personnel manager should accurately assess trainee’s job performance two to four months after completion of training.
Two writers have suggested that four basic categories of outcome can be measured.
a) Reaction: evaluate the trainee’s reaction to the programme. Did he like the programme? Did he think it worthwhile?
b) Learning: did the trainee learn the principles, skills and the fact that the supervisor or the trainee wanted him to learn?
c) Behavior: Whether the trainee’s behavior on the job changed because of the training programme?
d) Results: what final results have been achieved? Did he learn how to work on machine? Did scrappage costs decrease? Was turnover reduced? Are productions quotas have been met?

Questionnaires or structured interviews with the immediate supervisors of the trainees are acceptable methods for obtaining feedback on training. The supervisor is asked to rate the former trainee on job proficiency directly related to the training objectives.
Besides, pre-and-post tests be administered to the training groups. Prior to the training, a test related to the training material is applied, and the results of this pre-test are compared with results on the same or similar test administered after the programme has been completed.


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Re: Notes, projects, reference material etc - August 9th, 2008

Q) Objectives of Training and Development
Staying ahead in today's business world is more challenging than ever. Building trust and promoting teamwork are just two expectations of any business leader.
Training and development programs are designed to keep an organization at the front of its industry maximize performance and energize every level of the organization. Training and Development is also seen to strengthen the tie between employee development and strategic operation objectives.

The objectives of Training and Development are as follows: -
 Efficiency: Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization.
 Fewer accidents: Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well.
 Meeting manpower needs: Future needs of employees will be met through training and development programmes. Training serves as an effective source of recruitment. Training is an investment in human resource with promise of better returns in future.
 Improves quality: Better-informed workers are likely to make less operational mistakes. Quality of products or services will definitely increase. This can be well measured through the reduction in rejections.
 Personal growth: Training programmes also deal with personality development of the employees (through goal setting, motivation, leadership skills, etc.) thus they personally gain through exposure to training programmes.
 Obsolescence prevention: Training and development programs foster the initiative and the creativity of the employees and help to prevent the manpower obsolescence, which may be due to age, temperament, or the inability of the person to adapt himself to technological changes.

• Versatility in operations: Training makes the employees versatile in operations. All rounders can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in profits every year.

• Employee stability: Training contributes to employee stability in at least 2 ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the work force. Further trained employees tend to stay with the organization.





















Q) Effectiveness and Evaluation of Training and Development
Effectiveness of Training
Training and Development programmes are most likely to be effective when they incorporate the following principles

1.Employee Motivation-motivation to learn is the basic requisite to make training and development programmes effective. Motivation comes from awareness that training fetches some rise in status and pay. Motivation alone is not enough; the individual must have the ability to learn.

2.Recognition of individual differences
Regardless of individual differences, and whether a trainee is learning a new skill or acquiring knowledge of a given topic, the trainee should be given the opportunity to practice what he is taught. Practice is essential after individual is successfully trained.

3.Schedule of learning
Duration of practice sessions, duration of rest sessions and positioning of rest pauses are the three schedules, which must be carefully planned and executed for an effective training programme.

Besides, Training can be made effective, if action on the following lines is initiated: -

1.It should be ensured that the management commits itself to allocate major resources and adequate time to training. This is what high performing organizations do. For example XEROX, invest 300 $ million annually or about 2.5% of its revenue on training. Similarly Hewlet Packard spends about 5% of its annual revenue to train 87000 workers.

2.It should be ensured that training contributes to competitive strategies of the firm. Different strategies need different HR skills for implementation. Let training help employees at all levels acquire the needed skills.

3.Ensure that a comprehensive and systematic approach to training exists, and training and retraining are done at all levels on a continuous and ongoing basis.

4.Training can be made effective by making learning as one of the fundamental values of the company. This philosophy should percolate down to all employees in the organization.

5.It should be ensured that there is proper linkage among organizational, operational and individual training needs.

6.And finally to make training effective a system to evaluate the effectiveness of training needs to be prepared so that the shortfalls can be easily looked at.




Why Training Fails?
 The benefits of training are not clear to the top management.
 The top management hardly rewards the supervisors for carrying out effective training.
 The top management rarely plans and budgets systematically for training
 The middle management, without proper incentives from top management does not account for training in production scheduling
 Without proper scheduling from above, first line supervisors have difficulty in production norms if employees are attending training programmes.
 Trainers provide limited counseling and consulting services to the rest of the organization.

Evaluation of Training
Organizations are under pressure to justify various expenses. The training budget is, often, not exempted from this purview. There are a number of questions raised on the value derived from training programmes—both directly and indirectly. Business heads and training managers are under pressure to prove the effectiveness of training

Thus it can be seen,
The last and one of the most important stages in the training and development process is the evaluation of results. Since huge sums of money are spent on training and development. how far the training has been useful must be judged/determined.
Evaluation helps determine the results of the training and development programme.
In practice is however seen, organizations either overlook or lack facilities for evaluation.

Need for evaluation: -
• The main objective of evaluating the training programme is to determine if they are accomplishing specific training objectives, that is correctible performance deficiencies.
• Secondly training programme should be evaluated to determine their cost effectiveness. Evaluation is useful to explain programme failure, if it occurs.
• And finally the credibility of training and development is greatly enhanced when it is proved that the organization has benefited tangibility from it.



Principle of evaluation

Evaluation of training programme must be based ob following principles
1. The evaluation specialist must b clear about the goals and purposes of evaluation.
2. Evaluation must be continuous.
3. Evaluation must be specific.
4. Evaluation must provide the means and focus for trainers to be able to appraise themselves
5. Evaluation must be based on objective methods and standards.
6. Realistic target dates must be set for each phase of the evaluation process. A sense of urgency must be developed, but deadlines that are unreasonably high will result in poor evaluation.

Criteria for evaluation.
HR professionals should try to collect four types of data while evaluation training programmes.
I. Measures of reaction.
Reaction measures reveal trainees’ opinions regarding the training programme.

II. Learning
Learning measures assess the degree to which trainees have mastered the concepts, knowledge and skills of the training.

III. Behavioural change
Behavior indicates the performance of the learners.

IV. Organizational results
The purpose of collecting organizational results is to examine the impact of training on the work group or the entire company.

Techniques of evaluation
Several techniques of evaluation are being used in organizations. It may be stated that the usefulness of the methods is inversely proportional to the ease with which the evaluation can be done.
The following are the techniques of evaluation: -
1.Experimental and control groups.
Each group is randomly elected, one to receive training and the other not to receive training.
The random selection helps to assure the formation of the groups quite similar to each other. Measures are taken of relevant indicators of success. (E.g.-words typed per minute, pieces produced per hour etc) before and after training for both groups.
If the gain demonstrated by the experimental group is better than those by the control group, the training programme is labeled as successful.

2.Longitudinal or time series analysis
Measurements are taken before the programme begins and are continued during and after the programme is completed. These results are plotted on a graph to determine whether changes have occurred and remain as a result of training effort. To further validate, that change has occurred as a result of training and not another variable, a control group can be included.

In order to conduct a thorough evaluation of a training programme, it is important to assess the costs and benefits associated with the programme. This is a difficult task, but it is useful in convincing the management about the usefulness of the training.
Some of the costs that should be measured for a training programme include needs assessment costs, salaries of training department staff, purchase of equipment, programme development costs, trainers cost during the training period.
The benefits to be compared to the costs are rupee payback associated with the improvement in trainee’s performance, their behavioral change and the longevity of the period during which the benefit would last.


Q) Follow – Up of Training
Following-up is the last step in the training process. Here, the training program is already completed and the trainees go back to their departments or positions and start doing the work assigned. However, the management feels that training / development is a means and not the end in itself. Training is essentially for achieving certain objectives. Management will like to know actual results / benefits of training. For this, follow-up of training in the form of evaluation training is essential. Management spent huge amount of money on training of employees and this expenditure should give positive return in terms of higher efficiency, productivity, high morale, cordial industrial relations and so on. For this, critical evaluation of training program is essential. This indicates the effectiveness of the training. Even suitable modification / improvement in the training program is possible after analyzing the results available from such evaluation. In brief, evaluation helps determine the results of training and development program. Unfortunately, many organizations overlook this important step in the training process. In some companies, suitable facilities required for evolution of training are not available.
Follow-up is the key to ensuring that interventions improve performance. Various follow-up approaches in the work place are used to support trainers, supervisors, service providers and others responsible for implementing the performance improvement interventions.
The follow up technique will increase the probability that learning and behavior changes will "stick" back on the job. These techniques are easy to use, don't require large amounts of time or organizational integration and cost very little. They can be added on to existing training or designed with new training.
On the whole, follow–up action is required to ensure implementation of evaluation report at every stage of training.


Q) Importance of Training and Development


Training and development programmes help remove performance deficiencies in employees. This is particularly true when
(1) The deficiency is caused by a lack of ability rather than a lack of motivation to perform
(2) The individual(s) have the aptitude and motivation needed to learn to do the job better, and
(3) Supervisors and peers are supportive of the desired behaviors.


There is greater stability, flexibility and capacity for growth in an organization. Training contributes to employee stability in at least two ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the work force. Further, trained employees tend to stay with the organization. They seldom leave the company. Training makes the employees versatile in operations. All rounder can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in increased profits from year to year. Nobody else but well trained employees can contribute to the prosperity of an organization.

Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well.

Future need of employees will be met through training and development programmes. Organizations take fresh diploma holders or graduates as apprentices or management trainees. They are absorbed after course completion. Training serves as an effective source of recruitment. Training and development is an investment in human resources with a promise and it serves as an effective source of recruitment. Training and development is an investment in HR with a promise of better returns in future.

A company’s training and development pays dividends to the employee and the organization. Though no single training programme yields all the benefits, the organization which devotes itself to training and development enhances its HR capabilities and strengthens its competitive edge. At the same time, the employee’s personal and career goals are furthered, generally adding to his or her abilities and value to the employer. Ultimately, the objectives of the HR department are also furthered.

How to identify training needs?

Needs assessment diagnoses present problems and future challenges to be met through training and development. Organizations spend vast sums of money (usually as a percentage on turnover) on training and development. Before committing such huge resources, organizations would do well to assess the training needs of their employees. Organizations that implement training programmes without conducting needs assessment may be making errors. For ex- ample, a needs assessment exercise might reveal that less costly interventions (e.g. selection, compensation package, job redesign) could be used in lieu of training. Needs assessment occurs at two levels group and individual. An individual obviously needs training when his or her performance falls short of standards, that is, when there is performance deficiency. Inadequacy in performance may be due to lack of skill or knowledge or any other problem. The problem of performance deficiency caused by absence of skills or knowledge can be remedied by training. Faulty selection, poor job design, uninspiring supervision or some personal problem may also result in poor performance. Transfer, job redesign, improving quality of supervision, or discharge will solve the problem. Figure illustrates the assessment of individual training needs and remedial measures.
Assessment of training needs must also focus on anticipated skills of an employee. Technology changes fast and new technology demands new skills. It is necessary that the employee be trained to acquire new skills. This will help him/her to progress in his or her career path. Training and development is essential to prepare the employee to handle more challenging tasks. Deputation to a part-time MBA programme is ideal to train and develop such employees. Individuals may also require new skills because of possible job transfers. Although job transfers are common as organizational personnel demands vary, .hey do not necessarily require elaborate training efforts. Employees commonly require only an orientation to new facilities and jobs. Recently, however, economic forces have necessitated significant retraining efforts in order to assure continued employment for many individuals. Jobs have disappeared as technology, foreign competition, and the force of supply and demand are changing the face of our industry.
Assessment of training needs occurs at the group level too. Any change in the organization’s strategy necessitates training of groups of employees. For example, when the organization decides to introduce a new line of products, sales personnel and production workers have to be trained to produce, sell and service the new products. Training can also be used when high scrap or accident rates, low morale and motivation, or other problems are diagnosed. Although training is not a cure-all, such undesirable happenings reflect poorly trained work force.


Needs Assessment Methods: How are training needs assessed? Several methods are available for the purpose. As shown in Fig. 9.4, some are useful for organizational-level needs assessment and others for individual needs assessment.

Group or Organizational Analysis
 Organizational goals and objectives
 Personnel/ skill inventories
 Organizational climate indices
 Efficiency indices
 Exit interviews
 MBO or work planning systems
 Quality circles
 Customer survey/satisfaction data
 Consideration of current and projected changes

Individual Analysis
 Performance appraisal
 Work sampling
 Interviews
 Questionnaires
 Attitude survey
 Training progress
 Rating scales

Benefits of Needs Assessment: As was pointed above needs assessment helps diagnose the causes of performance deficiency in employees. Causes require remedial actions. This being a generalized statement, there are certain specific benefits of need& assessment. They are:
1. Trainers may be informed about the broader needs of the training group and their sponsoring organizations.
2. The sponsoring organizations are able to reduce the perception gap between the participant and his or her boss about their needs and expectations from the training programme.
3. Trainers are able to pitch their course inputs closer to the specific needs of the participants.

Performance appraisal

Q) Give the meaning and definition of performance appraisal and its objectives?

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

A formal definition of performance appraisal is:
“It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.”

A more comprehensive definition is:
“Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit.”

The second definition includes employee’s behavior as part of the assessment. Behavior can be active or passive. Either way behavior affects job results. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation, employee evaluation, and merit rating. In a formal sense, employee assessment is as old as the concept of management, and in an informal sense, it is probably as old as mankind. Nor performance appraisal is done in isolation. It is linked to job analysis.


Objectives of performance appraisal.

Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes for employee assessment are:

1) To effect promotions based on competence and performance

2) To confirm the services of probationary employees upon their completing the probationary period satisfactorily.

3) To assess the training and development need of employees.

4) To decide upon a pay raise.

5) To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.

6) To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee.

7) Finally, performance appraisal can be used to determine whether HR programmes such as selection, training, and transfer have been effective or not.



Q. What is the Performance Appraisal process?
The employee performance appraisal enables you to identify, evaluate and develop an individual's performance. It is a tool to encourage strong performers to maintain their high level of performance and to motivate poor performers to do better.
Other important benefits of a formal appraisal process are:
• Validation of hiring practices — are the right people in the right positions?
• Provision of an objective measuring tool on which compensation decisions, and promotions can be based
• Identification of training needs — individually, departmentally and organizationally
• Identification of employees who have the potential for advancement or who might be better suited in other areas of the organization

1. Objectives Of An Appraisal:
1. Promotion, separation, and transfer decisions
2. Feedback to the employee regarding how the organization viewed the employee's performance
3. Evaluations of relative contributions made by individuals and entire departments in achieving higher level organization goals
4. Criteria for evaluating the effectiveness of selection and placement decisions, including the relevance of the information used in the decisions within the organization
5. Reward decisions, including merit increases, promotions, and other rewards
6. Ascertaining and diagnosing training and development decisions
7. Criteria for evaluating the success of training and development decisions
8. Information upon which work scheduling plans, budgeting, and human resources planning can be used

2. Establish Job Expectations:
Goals should be realistic, i.e., practical and achievable. Realistic goals provide a "balance" between what is hard and what is easy to achieve. Goals should motivate people to improve and to reach for attainable ends. For a goal to be motivational, the person must feel that the goal can be achieved. Impossible goals de-motivate and defeat the goal-setting process. Likewise, easy goals do not motivate any more than unattainable goals. You should review your goals on a quarterly or semi-annual basis to check your progress and to make any necessary adjustments.
3. Design An Appraisal Programme:
(i) Formal versus Informal approach?
• Many organizations encourage a mixture of both formal and informal approach. The formal approach is used as the primary evaluation, where as the informal approach is used more for performance feedback.
(ii) Who are the raters?
• Immediate supervisors, specialists from the hr department, subordinates, peers, committees, clients, or a combination of many.
(iii) What problems are encountered?
• Leniency, severity, bias
(iv) How to solve the problems?
• Train the raters and appraisers
(v) What should be evaluated?
• Quality, quantity, timeliness, cost effectiveness, need for supervision, interpersonal impact.
(vi) When to evaluate?
• Once in three months, once in six months or once a year
4. Appraise Performances:
Use methods of appraisal such as psychological appraisals, assessment centers, ranking method, performance tests and observations, essay method etc.
The formal performance appraisal process is one of assessing, summarizing and developing the work performance of an employee. The performance appraisal process should include at least two meetings convened by the supervisor with the employee.
5. Performance Interview:
Once appraisal has been made of employees, the raters should discuss and review the performance with the ratees, so that they receive feed back about where they stand in the eyes of the superiors. Feedback is necessary to effect improvement in performance. Performance interview has 3 goals:
(i) To change the behavior of employees whose performance does not meet organizational requirements or their own personal goals
(ii) To maintain the behavior of employees who perform in an acceptable manner
(iii) To recognize superior performance behaviors so that they will be continued
6. Use Appraisal Data For Appropriate Purposes:
The Hr department must use the data and information generated through performance evaluation. The employers offer significant rewards to employees in the form of:
(i) Money to purchase goods and services, for luxury
(ii) Opportunities to interact with other people in a favorable working environment
(iii) Opportunities to learn grow and make full use of their potential etc.
Data & information outputs of a performance will be useful in the following areas of HRM:
(i) Remuneration administration
(ii) Validation of selection programmes
(iii) Employee training & development programmes
(iv) Promotion, transfer & lay-off decisions
(v) Grievance & discipline programmes
(vi) HR planning




Q)Methods of Evaluation of Performance Appraisal

Numerous methods have been devised to measure the quantity and quality of employee’s job performance. Each of the methods discuss could be effective for some purposes for some organization as different organizations different methods. Broadly all the approaches can be classified into past oriented and future oriented.


PAST ORIENTED

Rating Scales

This is the simplest and most popular method of appraising employee performance. The typical rating-scale system consists of several numeric scales, each representing a job-related performance criterion such as dependability, initiative, output, attendance, attitude and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, then computes the employee’s total numerical score. The number of points scored may be linked to salary increases, whereby so many points equal a rise of some percentage.
Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated with the rating scale, the only requirement being that the job performance criteria should be changed. This way a large number of employees can be rated in a short time, and the rater does not need any training to use the scale.
The disadvantages of this method are several. The raters biases are likely to influence the evaluation, and the biases are particularly pronounced on subjective criteria such as co-operation, attitude and initiative. Furthermore, numerical scoring gives an illusion of precision that is really unfounded

Man to Man comparison method:

This technique was used by the US army, during the first world war. By this method certain factors are selected for the design by the rater for each factor. A scale of man is also created for each selected factor. Each man to be rated is compared with the man in the scale, and certain scores for each factor are awarded to him. So, instead of comparing a “whole man” to a “whole man” personnel are compared to the key man in respect of one factor at a time. This method s used in job evaluation and is called the factor comparison method. In performance appraisal it is not of much use because the designing of scales is a complicated task.

360-degree system of appraisal

Where appraisal are made by peers, superiors, subordinates and clients it is called 360-degree system of appraisal. First developed at GE, US in 1992, the system has become popular in our country too. GB (India), Reliance Industries, Crompton Greaves, Godrej soaps, Infosys, Thermax and Thomas Cook are using the method with greater benefits. The Arthur Anderson survey (1997) reveal the20% of the organizations use the 360-degree method. Here, besides assessing performance, other attributes of the assesse- talents, behavioural quirks, values, ethical standards, tempers and loyalty are evaluated by people who are best placed to do it.

Peer appraisal

Peers are in a better position to evaluate certain facts of job performance which the subordinates or supervisors cannot do. Such facts include contribution to work group projects, interpersonal effectiveness, communication skills, reliability and initiative. Closeness of the working relationship and the amount of personal contacts place peers in a better position to make accurate assessments. Unfortunately, friendship or animosity may result in distortion of evaluation. Further, when reward allocation is based on peer evaluation, serious conflicts among co-workers may develop. Finally, all the peers may join together to rate each other high.

FUTURE ORIENTED

MBO

The Management by objectives concept which was conceived by Peter Drucker, reflects a management philosophy which values and utilizes employee contributions.
MBO wroks can be described in four steps:
1) The organization, superiors and subordinates together or just the superiors alone establish the goals of the employee. This goal usually the desired outcome to be achieved and it can be used to evaluate performance.

2) Second step involves involves setting the performance standard for the subordinates in a previously arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done, and what remains to be done.

3) Then the actual level of goal attained is compared to the goals agreed upon. The evaluator figures out why the goals were not met and accordingly determines training needs.

4) The last step is establishing new goals and, possibly, new strategies for goals not previously attained. If the goals were succeeded the subordinate may have larger involvement in setting of his next goal otherwise the superior may have to do it alone.

However, this method has been criticised for not being applicable to jobs with little or no flexibility, such as assembly-line work. It works well with managerial personnel and employees who have a fairly wide range of flexibility and self control in their jobs. And if this method is linked to employee rewards, the they are more likely to take up less challenging goals so that they are more likely to achieve them. Also if the rewards are semi annual or annual, then the employees may take up short term goals and neglect the important long term goals. L&T follows MBO style of evaluation

Assessment centers:

Mainly used for executive hiring, assessment centers are now being used for evaluating executive o supervisory potential. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The basic idea is to evaluate managers over a period of time, say one to three days, by observing and evaluating their behaviour across a series of selected exercises or work samples. Assesses are requested to participate in-basket exercises, work groups (without leaders), computer simulations, role playing, and other similar activities which require the same attributes for successful performance, as in the actual job. After recording their observations, the raters meet and discuss these observations. The decision regarding the performance of each assessee is based upon this discussion of observations. Self evaluation and peer evaluation are also thrown in for final rating.







Q)What are the uses of Performance Appraisal?

• Suitable Placement: Performance appraisal is useful for evaluating performance of subordinates and also for understanding their potentials. This information is available progressively and can be us purposefully for assigning duties to employees as per their merits and potentials. Thus, placement of staff and periodical adjustment in the placement can be made scientifically.

• Assistance in Self-improvement: Performance appraisal gives the details of plus points and weaknesses of employees. In addition, they are given guidance for removing their weaknesses and also for making their plus points more conspicuous. In brief, performance appraisal assists the employees in self-development. This is possible through performance feedback to every employee periodically.

• Incentive to Grown and Develop: Performance appraisal acts as an incentive to employees to improve their performance, develop new qualities and secure higher positions in the org. the employee with merit may be given special increments or promotion to higher position. This motivates others to improve their performance and qualities for similar benefits.

• Effective training programme: performance appraisal suggests the drawbacks and other weaknesses of employees. It is possible to remove such common weaknesses and deficiencies of employees by adjusting their training programmes accordingly.

• Introduction of Sound Personnel Policies: transfers, promotions, wage rates and dismissal are the different areas of personnel management. These personnel policies are directly connected with the performance appraisal of employees. Such policies become fair, impartial and acceptable to emp. When they are based on performance appraisal.

• Cordial Employer-Employees Relation: performance appraisal avoids or at least minimizes grievances of employees as regards promotions, transfers, increments etc. Employees develop a sense of confidence that injustice will not be done to any employee as performance appraisal system is based on sound principles. Management is also not in a position to make partiality/ favouratism when performance appraisal records are maintained properly and used when required.

• Human Resource Planning and Development: performance appraisal facilitates human resource planning and development. It suggests the type of manpower available. It is also possible to train or develop the existing manpower as per the future needs of the enterprise. This is possible through training and exec. Development programmes.

• Employee Communication: performance appraisal facilitates direct communication with the employees through appraisal interview and post appraisal interviews. Such communication guides emp. And also provides more info. to the mgmt. regarding the expectations and feelings of the employees.

• High Employee Morale: scientific and impartial appraisal gets the support from the employees. They feel that the mgmt. gives due importance to them and is genuinely interested I their career development and well being, this creates positive impact on the mental make-up of employees. They treat mgmt. as their friend, guide and well wisher. This raises the morale.


Q)The meaning of Pay Structure
A company's pay structure is its method of administering its pay philosophy. The two leading types of pay structures are the internal equity method, which uses a tightly constructed grid to ensure that each job is compensated according to the jobs above and below it in a hierarchy, and market pricing, where each job in an organization is tied to the prevailing market rate.
A company needs job descriptions for positions such as executives, managers, technologists, entry-level people, and the like, so that people know where they fall within the organization. A pay structure helps answer questions about who's who, what each person's role is, and why people are compensated differently. It also helps human resources personnel administer fairly any given pay philosophy. For example, a company might want to pay everyone at market; or pay some people at market and some above it. Opportunities for incentives are also dealt with in the pay structure. For example, people with strategic roles will have opportunities for higher incentives.

In most organizations wage and salary rates are still assigned to jobs. The relationships between the pay for jobs involve pay structure decisions. Although organizations often make pay level decisions (how much to pay) and pay structure decisions (pay relationship) at the same time, these decisions and the process by which they are reached require separate treatment.

Actually, wage structures represent wage relationships of all kinds. Analysis of wage differentials of any kind (geographic, industry, community, or occupation) deals with wage structure issues. But because our primary focus is on pay decisions in organizations, our concern is with pay differences between jobs. In fact, determining the pay structure of an organization may be usefully described as putting dollar signs on jobs. Decisions on wage relationships among jobs within an organization are largely within the control of its decision makers. Wage level decisions are usually influenced more by forces external to the organization than are wage structure decisions.

Some organizations pay for skills possessed by employees rather than for the jobs employees hold. The rationale is usually serious and continual skill shortages experienced by the organization. But most organizations measure employee contributions first in terms of the jobs employees hold. One interesting analysis of organizational compensation decisions is that pay structure decisions are intended to achieve retention of employees through prevention of dissatisfaction and encouragement of employee cooperation. Pay level decisions, in this analysis, are intended to attract employees. To this analysis could be added the statement that wage structure decisions are intended to encourage employees to make a career with the organization and to accept training in preparation for higher-level jobs.
• Lower-range — pay is between minimum pay and mid-range, is appropriate for employees in the learning and development phase of their job; this range is typically for employees new to a position and whose competencies are not yet fully developed. Entry level pay falls in this range.

• Mid-range — pay is appropriate for employees who are fully proficient in their job. This is the target market-based competitive pay for employees who are fully competent, possess the full skill set necessary to perform their job well, meet job expectations, and consistently demonstrate skills needed and fulfill responsibilities and duties.

• Upper-range — pay is appropriate for employees who serve as role models, exhibiting an exceptional skill set and consistently exceeding all job expectations. These employees exemplify the best way of doing their job, go the "extra mile," share their knowledge, and leverage their strengths to benefit the Organisation.




Q)The Meaning of Pay Level
The compensation and benefit level is the average compensation paid to employees. This has two implications. The first is external: how does the organization compare with other organizations? This question is a strategic one of how the organization wishes to position itself in the marketplace. The second implication is internal. The average compensation is a reflection of the total compensation bill of the organization. Labor is one of the claimants on organizational resources. The size of the compensation and benefits bill is a reflection of who gets what within the organization.
The decision on compensation levels (how much will the organization pay?) may be the most important pay decision the organization makes. A potential employee's acceptance usually turns on this decision, and a large segment of the employer's costs are determined by it.
Compensation decisions are typically micro (individual) or macro (total organization) focused. Although organizations are under no constraint to separate these decisions, a course of study should. In practice, most unsophisticated organizations make the decision on compensation level (how much to pay) and compensation structure (relationships to competitors) at the same time. More administratively advanced organizations realize that individual decisions within a proper administrative structure are more consistent, fair, and cost-effective over time.
The compensation level decision may be considered the most important one for individuals. In terms of both employee attraction and cost considerations, it is often considered by most managers as a primary consideration. Also, it seems essential to recognize that compensation level decisions can never be completely separate from job-mix, hiring standards, personal decisions, and internal labor markets/relationships. For these reasons, compensation level decisions are typically the focus of a manager’s attention. From the organization’s perspective, however, one individual’s compensation decision typically goes unnoticed at the end of the year. Structure decisions (and the level of those structures) are what show up on an income statement.
The term compensation level simply means the average compensation paid to workers at some level of analysis, e.g. the job, the department, the employing organization, an industry, or the economy. The importance of the compensation level decision to organizations rests on its influence in getting and perhaps keeping the desired quantity and quality of employees. If the compensation level is too low, the applicant pool may dry up and recruitment efforts may meet with little success. Equally serious, some employees (often the best ones) may leave. At the extreme, the organization may experience difficulties with state and federal regulatory bodies administering minimum compensation laws and prevailing wage laws. Also, the organization may be confronted with concerted organizing drives if no union is present, or pressing compensation demands from existing unions. It is less apparent, but equally real, that a low compensation level may attract only less efficient workers, with the result that labor costs per unit of output rise.
If, on the other hand, the compensation level is too high, equally undesirable results are likely. The competitive position of the organization may suffer. Turnover rates may drop below some desirable minimum so that the organization tends toward inflexibility or stagnation. Also, if compensation and salary levels are too high during periods of compensation controls by federal authorities, trouble may be forthcoming from these officials. Frequently, compensation and benefit level decisions are hidden in the type and structure of benefit, fringe, and retirement plans.
Changes in compensation levels have the most drastic effects on total payroll. Of course, other compensation decisions have payroll effects, but usually not nearly as great. Substantial sums of money can be involved, and for this reason alone an organization must pay close attention to compensation levels (both competitively and internally).
Nor are employees and their representatives any less concerned with compensation level decisions. It is here that the absolute amount of the compensation or salary rate is determined. Also, it is here that unions exert their major effect, and here that member loyalty is built or lost.
Finally, consumers and the general public have major interests in compensation level decisions, the consumer because wages are a major element in prices, and the general public because wages and salaries represent the major portion of national income. Also, too frequent or too drastic changes in compensation levels affect the health of our economy.


Q) Explain the Concepts of wages.

While evolving the wage policy, three concepts of wages are generally considered, namely,
1. Minimum Wages,
2. Fair Wages, and
3. Living Wages.

Minimum Wages
Minimum wage is the one that provides not merely the bare sustenance of life but also for the preservation of the efficiency of the worker. For this purpose, the minimum wage must also provide for some measure of education, medical requirements and amenities. Minimum wage may be tied by an agreement between the management and the workers, but is usually determined through legislation. This is more so in the unorganized sector where labour is unionised. In the fixation of minimum wages, besides the needs of workers, other factors like ability of the concern to pay, nature of the jobs, and so on, are also considered.

Fair Wages
Fair wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighbourhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for traders in general. Irrespective of the way in which fair wage is understood, it can be fixed only by comparison with an accepted standard wage. Such a standard can be determined with reference to those industries where labour is well organized and has been able to bargain well with the employers.

Living Wages
Living wage is a step higher than fair wage. Living wage may be described as one which should enable the wage earner to provide for himself and his family not on the bare essentials of life like food, clothing and shelter, but a measure of frugal comfort including education for children; protection against ill health; requirements of essential social needs; and/or measure of insurance against the more important misfortunes including old age. A living wage must be fixed considering the general economic conditions of the country. The concept of living wage, therefore, varies from country to country. In the more advanced countries, living wage itself forms the basis for the minimum wage.
In India, minimum wage is determined mainly for sweated industries under the provisions of the Minimum Wages Act, 1948. Fair wage is fixed for other industries considering prevailing rates of wages, productivity of labour, capacity of the employer to pay, level of national income and other related factors.
Tribunals, awards and wage boards play major role in fair wage fixation. Many people are of the opinion that living wage is a luxury for a developing country like India and can therefore be deferred.


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Re: Notes, projects, reference material etc
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Re: Notes, projects, reference material etc - August 9th, 2008

Q) Objectives of Training and Development
Staying ahead in today's business world is more challenging than ever. Building trust and promoting teamwork are just two expectations of any business leader.
Training and development programs are designed to keep an organization at the front of its industry maximize performance and energize every level of the organization. Training and Development is also seen to strengthen the tie between employee development and strategic operation objectives.

The objectives of Training and Development are as follows: -
 Efficiency: Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization.
 Fewer accidents: Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well.
 Meeting manpower needs: Future needs of employees will be met through training and development programmes. Training serves as an effective source of recruitment. Training is an investment in human resource with promise of better returns in future.
 Improves quality: Better-informed workers are likely to make less operational mistakes. Quality of products or services will definitely increase. This can be well measured through the reduction in rejections.
 Personal growth: Training programmes also deal with personality development of the employees (through goal setting, motivation, leadership skills, etc.) thus they personally gain through exposure to training programmes.
 Obsolescence prevention: Training and development programs foster the initiative and the creativity of the employees and help to prevent the manpower obsolescence, which may be due to age, temperament, or the inability of the person to adapt himself to technological changes.

• Versatility in operations: Training makes the employees versatile in operations. All rounders can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in profits every year.

• Employee stability: Training contributes to employee stability in at least 2 ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the work force. Further trained employees tend to stay with the organization.





















Q) Effectiveness and Evaluation of Training and Development
Effectiveness of Training
Training and Development programmes are most likely to be effective when they incorporate the following principles

1.Employee Motivation-motivation to learn is the basic requisite to make training and development programmes effective. Motivation comes from awareness that training fetches some rise in status and pay. Motivation alone is not enough; the individual must have the ability to learn.

2.Recognition of individual differences
Regardless of individual differences, and whether a trainee is learning a new skill or acquiring knowledge of a given topic, the trainee should be given the opportunity to practice what he is taught. Practice is essential after individual is successfully trained.

3.Schedule of learning
Duration of practice sessions, duration of rest sessions and positioning of rest pauses are the three schedules, which must be carefully planned and executed for an effective training programme.

Besides, Training can be made effective, if action on the following lines is initiated: -

1.It should be ensured that the management commits itself to allocate major resources and adequate time to training. This is what high performing organizations do. For example XEROX, invest 300 $ million annually or about 2.5% of its revenue on training. Similarly Hewlet Packard spends about 5% of its annual revenue to train 87000 workers.

2.It should be ensured that training contributes to competitive strategies of the firm. Different strategies need different HR skills for implementation. Let training help employees at all levels acquire the needed skills.

3.Ensure that a comprehensive and systematic approach to training exists, and training and retraining are done at all levels on a continuous and ongoing basis.

4.Training can be made effective by making learning as one of the fundamental values of the company. This philosophy should percolate down to all employees in the organization.

5.It should be ensured that there is proper linkage among organizational, operational and individual training needs.

6.And finally to make training effective a system to evaluate the effectiveness of training needs to be prepared so that the shortfalls can be easily looked at.




Why Training Fails?
 The benefits of training are not clear to the top management.
 The top management hardly rewards the supervisors for carrying out effective training.
 The top management rarely plans and budgets systematically for training
 The middle management, without proper incentives from top management does not account for training in production scheduling
 Without proper scheduling from above, first line supervisors have difficulty in production norms if employees are attending training programmes.
 Trainers provide limited counseling and consulting services to the rest of the organization.

Evaluation of Training
Organizations are under pressure to justify various expenses. The training budget is, often, not exempted from this purview. There are a number of questions raised on the value derived from training programmes—both directly and indirectly. Business heads and training managers are under pressure to prove the effectiveness of training

Thus it can be seen,
The last and one of the most important stages in the training and development process is the evaluation of results. Since huge sums of money are spent on training and development. how far the training has been useful must be judged/determined.
Evaluation helps determine the results of the training and development programme.
In practice is however seen, organizations either overlook or lack facilities for evaluation.

Need for evaluation: -
• The main objective of evaluating the training programme is to determine if they are accomplishing specific training objectives, that is correctible performance deficiencies.
• Secondly training programme should be evaluated to determine their cost effectiveness. Evaluation is useful to explain programme failure, if it occurs.
• And finally the credibility of training and development is greatly enhanced when it is proved that the organization has benefited tangibility from it.



Principle of evaluation

Evaluation of training programme must be based ob following principles
1. The evaluation specialist must b clear about the goals and purposes of evaluation.
2. Evaluation must be continuous.
3. Evaluation must be specific.
4. Evaluation must provide the means and focus for trainers to be able to appraise themselves
5. Evaluation must be based on objective methods and standards.
6. Realistic target dates must be set for each phase of the evaluation process. A sense of urgency must be developed, but deadlines that are unreasonably high will result in poor evaluation.

Criteria for evaluation.
HR professionals should try to collect four types of data while evaluation training programmes.
I. Measures of reaction.
Reaction measures reveal trainees’ opinions regarding the training programme.

II. Learning
Learning measures assess the degree to which trainees have mastered the concepts, knowledge and skills of the training.

III. Behavioural change
Behavior indicates the performance of the learners.

IV. Organizational results
The purpose of collecting organizational results is to examine the impact of training on the work group or the entire company.

Techniques of evaluation
Several techniques of evaluation are being used in organizations. It may be stated that the usefulness of the methods is inversely proportional to the ease with which the evaluation can be done.
The following are the techniques of evaluation: -
1.Experimental and control groups.
Each group is randomly elected, one to receive training and the other not to receive training.
The random selection helps to assure the formation of the groups quite similar to each other. Measures are taken of relevant indicators of success. (E.g.-words typed per minute, pieces produced per hour etc) before and after training for both groups.
If the gain demonstrated by the experimental group is better than those by the control group, the training programme is labeled as successful.

2.Longitudinal or time series analysis
Measurements are taken before the programme begins and are continued during and after the programme is completed. These results are plotted on a graph to determine whether changes have occurred and remain as a result of training effort. To further validate, that change has occurred as a result of training and not another variable, a control group can be included.

In order to conduct a thorough evaluation of a training programme, it is important to assess the costs and benefits associated with the programme. This is a difficult task, but it is useful in convincing the management about the usefulness of the training.
Some of the costs that should be measured for a training programme include needs assessment costs, salaries of training department staff, purchase of equipment, programme development costs, trainers cost during the training period.
The benefits to be compared to the costs are rupee payback associated with the improvement in trainee’s performance, their behavioral change and the longevity of the period during which the benefit would last.


Q) Follow – Up of Training
Following-up is the last step in the training process. Here, the training program is already completed and the trainees go back to their departments or positions and start doing the work assigned. However, the management feels that training / development is a means and not the end in itself. Training is essentially for achieving certain objectives. Management will like to know actual results / benefits of training. For this, follow-up of training in the form of evaluation training is essential. Management spent huge amount of money on training of employees and this expenditure should give positive return in terms of higher efficiency, productivity, high morale, cordial industrial relations and so on. For this, critical evaluation of training program is essential. This indicates the effectiveness of the training. Even suitable modification / improvement in the training program is possible after analyzing the results available from such evaluation. In brief, evaluation helps determine the results of training and development program. Unfortunately, many organizations overlook this important step in the training process. In some companies, suitable facilities required for evolution of training are not available.
Follow-up is the key to ensuring that interventions improve performance. Various follow-up approaches in the work place are used to support trainers, supervisors, service providers and others responsible for implementing the performance improvement interventions.
The follow up technique will increase the probability that learning and behavior changes will "stick" back on the job. These techniques are easy to use, don't require large amounts of time or organizational integration and cost very little. They can be added on to existing training or designed with new training.
On the whole, follow–up action is required to ensure implementation of evaluation report at every stage of training.


Q) Importance of Training and Development


Training and development programmes help remove performance deficiencies in employees. This is particularly true when
(1) The deficiency is caused by a lack of ability rather than a lack of motivation to perform
(2) The individual(s) have the aptitude and motivation needed to learn to do the job better, and
(3) Supervisors and peers are supportive of the desired behaviors.


There is greater stability, flexibility and capacity for growth in an organization. Training contributes to employee stability in at least two ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the work force. Further, trained employees tend to stay with the organization. They seldom leave the company. Training makes the employees versatile in operations. All rounder can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in increased profits from year to year. Nobody else but well trained employees can contribute to the prosperity of an organization.

Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well.

Future need of employees will be met through training and development programmes. Organizations take fresh diploma holders or graduates as apprentices or management trainees. They are absorbed after course completion. Training serves as an effective source of recruitment. Training and development is an investment in human resources with a promise and it serves as an effective source of recruitment. Training and development is an investment in HR with a promise of better returns in future.

A company’s training and development pays dividends to the employee and the organization. Though no single training programme yields all the benefits, the organization which devotes itself to training and development enhances its HR capabilities and strengthens its competitive edge. At the same time, the employee’s personal and career goals are furthered, generally adding to his or her abilities and value to the employer. Ultimately, the objectives of the HR department are also furthered.

How to identify training needs?

Needs assessment diagnoses present problems and future challenges to be met through training and development. Organizations spend vast sums of money (usually as a percentage on turnover) on training and development. Before committing such huge resources, organizations would do well to assess the training needs of their employees. Organizations that implement training programmes without conducting needs assessment may be making errors. For ex- ample, a needs assessment exercise might reveal that less costly interventions (e.g. selection, compensation package, job redesign) could be used in lieu of training. Needs assessment occurs at two levels group and individual. An individual obviously needs training when his or her performance falls short of standards, that is, when there is performance deficiency. Inadequacy in performance may be due to lack of skill or knowledge or any other problem. The problem of performance deficiency caused by absence of skills or knowledge can be remedied by training. Faulty selection, poor job design, uninspiring supervision or some personal problem may also result in poor performance. Transfer, job redesign, improving quality of supervision, or discharge will solve the problem. Figure illustrates the assessment of individual training needs and remedial measures.
Assessment of training needs must also focus on anticipated skills of an employee. Technology changes fast and new technology demands new skills. It is necessary that the employee be trained to acquire new skills. This will help him/her to progress in his or her career path. Training and development is essential to prepare the employee to handle more challenging tasks. Deputation to a part-time MBA programme is ideal to train and develop such employees. Individuals may also require new skills because of possible job transfers. Although job transfers are common as organizational personnel demands vary, .hey do not necessarily require elaborate training efforts. Employees commonly require only an orientation to new facilities and jobs. Recently, however, economic forces have necessitated significant retraining efforts in order to assure continued employment for many individuals. Jobs have disappeared as technology, foreign competition, and the force of supply and demand are changing the face of our industry.
Assessment of training needs occurs at the group level too. Any change in the organization’s strategy necessitates training of groups of employees. For example, when the organization decides to introduce a new line of products, sales personnel and production workers have to be trained to produce, sell and service the new products. Training can also be used when high scrap or accident rates, low morale and motivation, or other problems are diagnosed. Although training is not a cure-all, such undesirable happenings reflect poorly trained work force.


Needs Assessment Methods: How are training needs assessed? Several methods are available for the purpose. As shown in Fig. 9.4, some are useful for organizational-level needs assessment and others for individual needs assessment.

Group or Organizational Analysis
 Organizational goals and objectives
 Personnel/ skill inventories
 Organizational climate indices
 Efficiency indices
 Exit interviews
 MBO or work planning systems
 Quality circles
 Customer survey/satisfaction data
 Consideration of current and projected changes

Individual Analysis
 Performance appraisal
 Work sampling
 Interviews
 Questionnaires
 Attitude survey
 Training progress
 Rating scales

Benefits of Needs Assessment: As was pointed above needs assessment helps diagnose the causes of performance deficiency in employees. Causes require remedial actions. This being a generalized statement, there are certain specific benefits of need& assessment. They are:
1. Trainers may be informed about the broader needs of the training group and their sponsoring organizations.
2. The sponsoring organizations are able to reduce the perception gap between the participant and his or her boss about their needs and expectations from the training programme.
3. Trainers are able to pitch their course inputs closer to the specific needs of the participants.

Performance appraisal

Q) Give the meaning and definition of performance appraisal and its objectives?

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

A formal definition of performance appraisal is:
“It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.”

A more comprehensive definition is:
“Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit.”

The second definition includes employee’s behavior as part of the assessment. Behavior can be active or passive. Either way behavior affects job results. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation, employee evaluation, and merit rating. In a formal sense, employee assessment is as old as the concept of management, and in an informal sense, it is probably as old as mankind. Nor performance appraisal is done in isolation. It is linked to job analysis.


Objectives of performance appraisal.

Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes for employee assessment are:

1) To effect promotions based on competence and performance

2) To confirm the services of probationary employees upon their completing the probationary period satisfactorily.

3) To assess the training and development need of employees.

4) To decide upon a pay raise.

5) To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.

6) To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee.

7) Finally, performance appraisal can be used to determine whether HR programmes such as selection, training, and transfer have been effective or not.



Q. What is the Performance Appraisal process?
The employee performance appraisal enables you to identify, evaluate and develop an individual's performance. It is a tool to encourage strong performers to maintain their high level of performance and to motivate poor performers to do better.
Other important benefits of a formal appraisal process are:
• Validation of hiring practices — are the right people in the right positions?
• Provision of an objective measuring tool on which compensation decisions, and promotions can be based
• Identification of training needs — individually, departmentally and organizationally
• Identification of employees who have the potential for advancement or who might be better suited in other areas of the organization

1. Objectives Of An Appraisal:
1. Promotion, separation, and transfer decisions
2. Feedback to the employee regarding how the organization viewed the employee's performance
3. Evaluations of relative contributions made by individuals and entire departments in achieving higher level organization goals
4. Criteria for evaluating the effectiveness of selection and placement decisions, including the relevance of the information used in the decisions within the organization
5. Reward decisions, including merit increases, promotions, and other rewards
6. Ascertaining and diagnosing training and development decisions
7. Criteria for evaluating the success of training and development decisions
8. Information upon which work scheduling plans, budgeting, and human resources planning can be used

2. Establish Job Expectations:
Goals should be realistic, i.e., practical and achievable. Realistic goals provide a "balance" between what is hard and what is easy to achieve. Goals should motivate people to improve and to reach for attainable ends. For a goal to be motivational, the person must feel that the goal can be achieved. Impossible goals de-motivate and defeat the goal-setting process. Likewise, easy goals do not motivate any more than unattainable goals. You should review your goals on a quarterly or semi-annual basis to check your progress and to make any necessary adjustments.
3. Design An Appraisal Programme:
(i) Formal versus Informal approach?
• Many organizations encourage a mixture of both formal and informal approach. The formal approach is used as the primary evaluation, where as the informal approach is used more for performance feedback.
(ii) Who are the raters?
• Immediate supervisors, specialists from the hr department, subordinates, peers, committees, clients, or a combination of many.
(iii) What problems are encountered?
• Leniency, severity, bias
(iv) How to solve the problems?
• Train the raters and appraisers
(v) What should be evaluated?
• Quality, quantity, timeliness, cost effectiveness, need for supervision, interpersonal impact.
(vi) When to evaluate?
• Once in three months, once in six months or once a year
4. Appraise Performances:
Use methods of appraisal such as psychological appraisals, assessment centers, ranking method, performance tests and observations, essay method etc.
The formal performance appraisal process is one of assessing, summarizing and developing the work performance of an employee. The performance appraisal process should include at least two meetings convened by the supervisor with the employee.
5. Performance Interview:
Once appraisal has been made of employees, the raters should discuss and review the performance with the ratees, so that they receive feed back about where they stand in the eyes of the superiors. Feedback is necessary to effect improvement in performance. Performance interview has 3 goals:
(i) To change the behavior of employees whose performance does not meet organizational requirements or their own personal goals
(ii) To maintain the behavior of employees who perform in an acceptable manner
(iii) To recognize superior performance behaviors so that they will be continued
6. Use Appraisal Data For Appropriate Purposes:
The Hr department must use the data and information generated through performance evaluation. The employers offer significant rewards to employees in the form of:
(i) Money to purchase goods and services, for luxury
(ii) Opportunities to interact with other people in a favorable working environment
(iii) Opportunities to learn grow and make full use of their potential etc.
Data & information outputs of a performance will be useful in the following areas of HRM:
(i) Remuneration administration
(ii) Validation of selection programmes
(iii) Employee training & development programmes
(iv) Promotion, transfer & lay-off decisions
(v) Grievance & discipline programmes
(vi) HR planning




Q)Methods of Evaluation of Performance Appraisal

Numerous methods have been devised to measure the quantity and quality of employee’s job performance. Each of the methods discuss could be effective for some purposes for some organization as different organizations different methods. Broadly all the approaches can be classified into past oriented and future oriented.


PAST ORIENTED

Rating Scales

This is the simplest and most popular method of appraising employee performance. The typical rating-scale system consists of several numeric scales, each representing a job-related performance criterion such as dependability, initiative, output, attendance, attitude and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, then computes the employee’s total numerical score. The number of points scored may be linked to salary increases, whereby so many points equal a rise of some percentage.
Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated with the rating scale, the only requirement being that the job performance criteria should be changed. This way a large number of employees can be rated in a short time, and the rater does not need any training to use the scale.
The disadvantages of this method are several. The raters biases are likely to influence the evaluation, and the biases are particularly pronounced on subjective criteria such as co-operation, attitude and initiative. Furthermore, numerical scoring gives an illusion of precision that is really unfounded

Man to Man comparison method:

This technique was used by the US army, during the first world war. By this method certain factors are selected for the design by the rater for each factor. A scale of man is also created for each selected factor. Each man to be rated is compared with the man in the scale, and certain scores for each factor are awarded to him. So, instead of comparing a “whole man” to a “whole man” personnel are compared to the key man in respect of one factor at a time. This method s used in job evaluation and is called the factor comparison method. In performance appraisal it is not of much use because the designing of scales is a complicated task.

360-degree system of appraisal

Where appraisal are made by peers, superiors, subordinates and clients it is called 360-degree system of appraisal. First developed at GE, US in 1992, the system has become popular in our country too. GB (India), Reliance Industries, Crompton Greaves, Godrej soaps, Infosys, Thermax and Thomas Cook are using the method with greater benefits. The Arthur Anderson survey (1997) reveal the20% of the organizations use the 360-degree method. Here, besides assessing performance, other attributes of the assesse- talents, behavioural quirks, values, ethical standards, tempers and loyalty are evaluated by people who are best placed to do it.

Peer appraisal

Peers are in a better position to evaluate certain facts of job performance which the subordinates or supervisors cannot do. Such facts include contribution to work group projects, interpersonal effectiveness, communication skills, reliability and initiative. Closeness of the working relationship and the amount of personal contacts place peers in a better position to make accurate assessments. Unfortunately, friendship or animosity may result in distortion of evaluation. Further, when reward allocation is based on peer evaluation, serious conflicts among co-workers may develop. Finally, all the peers may join together to rate each other high.

FUTURE ORIENTED

MBO

The Management by objectives concept which was conceived by Peter Drucker, reflects a management philosophy which values and utilizes employee contributions.
MBO wroks can be described in four steps:
1) The organization, superiors and subordinates together or just the superiors alone establish the goals of the employee. This goal usually the desired outcome to be achieved and it can be used to evaluate performance.

2) Second step involves involves setting the performance standard for the subordinates in a previously arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done, and what remains to be done.

3) Then the actual level of goal attained is compared to the goals agreed upon. The evaluator figures out why the goals were not met and accordingly determines training needs.

4) The last step is establishing new goals and, possibly, new strategies for goals not previously attained. If the goals were succeeded the subordinate may have larger involvement in setting of his next goal otherwise the superior may have to do it alone.

However, this method has been criticised for not being applicable to jobs with little or no flexibility, such as assembly-line work. It works well with managerial personnel and employees who have a fairly wide range of flexibility and self control in their jobs. And if this method is linked to employee rewards, the they are more likely to take up less challenging goals so that they are more likely to achieve them. Also if the rewards are semi annual or annual, then the employees may take up short term goals and neglect the important long term goals. L&T follows MBO style of evaluation

Assessment centers:

Mainly used for executive hiring, assessment centers are now being used for evaluating executive o supervisory potential. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The basic idea is to evaluate managers over a period of time, say one to three days, by observing and evaluating their behaviour across a series of selected exercises or work samples. Assesses are requested to participate in-basket exercises, work groups (without leaders), computer simulations, role playing, and other similar activities which require the same attributes for successful performance, as in the actual job. After recording their observations, the raters meet and discuss these observations. The decision regarding the performance of each assessee is based upon this discussion of observations. Self evaluation and peer evaluation are also thrown in for final rating.







Q)What are the uses of Performance Appraisal?

• Suitable Placement: Performance appraisal is useful for evaluating performance of subordinates and also for understanding their potentials. This information is available progressively and can be us purposefully for assigning duties to employees as per their merits and potentials. Thus, placement of staff and periodical adjustment in the placement can be made scientifically.

• Assistance in Self-improvement: Performance appraisal gives the details of plus points and weaknesses of employees. In addition, they are given guidance for removing their weaknesses and also for making their plus points more conspicuous. In brief, performance appraisal assists the employees in self-development. This is possible through performance feedback to every employee periodically.

• Incentive to Grown and Develop: Performance appraisal acts as an incentive to employees to improve their performance, develop new qualities and secure higher positions in the org. the employee with merit may be given special increments or promotion to higher position. This motivates others to improve their performance and qualities for similar benefits.

• Effective training programme: performance appraisal suggests the drawbacks and other weaknesses of employees. It is possible to remove such common weaknesses and deficiencies of employees by adjusting their training programmes accordingly.

• Introduction of Sound Personnel Policies: transfers, promotions, wage rates and dismissal are the different areas of personnel management. These personnel policies are directly connected with the performance appraisal of employees. Such policies become fair, impartial and acceptable to emp. When they are based on performance appraisal.

• Cordial Employer-Employees Relation: performance appraisal avoids or at least minimizes grievances of employees as regards promotions, transfers, increments etc. Employees develop a sense of confidence that injustice will not be done to any employee as performance appraisal system is based on sound principles. Management is also not in a position to make partiality/ favouratism when performance appraisal records are maintained properly and used when required.

• Human Resource Planning and Development: performance appraisal facilitates human resource planning and development. It suggests the type of manpower available. It is also possible to train or develop the existing manpower as per the future needs of the enterprise. This is possible through training and exec. Development programmes.

• Employee Communication: performance appraisal facilitates direct communication with the employees through appraisal interview and post appraisal interviews. Such communication guides emp. And also provides more info. to the mgmt. regarding the expectations and feelings of the employees.

• High Employee Morale: scientific and impartial appraisal gets the support from the employees. They feel that the mgmt. gives due importance to them and is genuinely interested I their career development and well being, this creates positive impact on the mental make-up of employees. They treat mgmt. as their friend, guide and well wisher. This raises the morale.


Q)The meaning of Pay Structure
A company's pay structure is its method of administering its pay philosophy. The two leading types of pay structures are the internal equity method, which uses a tightly constructed grid to ensure that each job is compensated according to the jobs above and below it in a hierarchy, and market pricing, where each job in an organization is tied to the prevailing market rate.
A company needs job descriptions for positions such as executives, managers, technologists, entry-level people, and the like, so that people know where they fall within the organization. A pay structure helps answer questions about who's who, what each person's role is, and why people are compensated differently. It also helps human resources personnel administer fairly any given pay philosophy. For example, a company might want to pay everyone at market; or pay some people at market and some above it. Opportunities for incentives are also dealt with in the pay structure. For example, people with strategic roles will have opportunities for higher incentives.

In most organizations wage and salary rates are still assigned to jobs. The relationships between the pay for jobs involve pay structure decisions. Although organizations often make pay level decisions (how much to pay) and pay structure decisions (pay relationship) at the same time, these decisions and the process by which they are reached require separate treatment.

Actually, wage structures represent wage relationships of all kinds. Analysis of wage differentials of any kind (geographic, industry, community, or occupation) deals with wage structure issues. But because our primary focus is on pay decisions in organizations, our concern is with pay differences between jobs. In fact, determining the pay structure of an organization may be usefully described as putting dollar signs on jobs. Decisions on wage relationships among jobs within an organization are largely within the control of its decision makers. Wage level decisions are usually influenced more by forces external to the organization than are wage structure decisions.

Some organizations pay for skills possessed by employees rather than for the jobs employees hold. The rationale is usually serious and continual skill shortages experienced by the organization. But most organizations measure employee contributions first in terms of the jobs employees hold. One interesting analysis of organizational compensation decisions is that pay structure decisions are intended to achieve retention of employees through prevention of dissatisfaction and encouragement of employee cooperation. Pay level decisions, in this analysis, are intended to attract employees. To this analysis could be added the statement that wage structure decisions are intended to encourage employees to make a career with the organization and to accept training in preparation for higher-level jobs.
• Lower-range — pay is between minimum pay and mid-range, is appropriate for employees in the learning and development phase of their job; this range is typically for employees new to a position and whose competencies are not yet fully developed. Entry level pay falls in this range.

• Mid-range — pay is appropriate for employees who are fully proficient in their job. This is the target market-based competitive pay for employees who are fully competent, possess the full skill set necessary to perform their job well, meet job expectations, and consistently demonstrate skills needed and fulfill responsibilities and duties.

• Upper-range — pay is appropriate for employees who serve as role models, exhibiting an exceptional skill set and consistently exceeding all job expectations. These employees exemplify the best way of doing their job, go the "extra mile," share their knowledge, and leverage their strengths to benefit the Organisation.




Q)The Meaning of Pay Level
The compensation and benefit level is the average compensation paid to employees. This has two implications. The first is external: how does the organization compare with other organizations? This question is a strategic one of how the organization wishes to position itself in the marketplace. The second implication is internal. The average compensation is a reflection of the total compensation bill of the organization. Labor is one of the claimants on organizational resources. The size of the compensation and benefits bill is a reflection of who gets what within the organization.
The decision on compensation levels (how much will the organization pay?) may be the most important pay decision the organization makes. A potential employee's acceptance usually turns on this decision, and a large segment of the employer's costs are determined by it.
Compensation decisions are typically micro (individual) or macro (total organization) focused. Although organizations are under no constraint to separate these decisions, a course of study should. In practice, most unsophisticated organizations make the decision on compensation level (how much to pay) and compensation structure (relationships to competitors) at the same time. More administratively advanced organizations realize that individual decisions within a proper administrative structure are more consistent, fair, and cost-effective over time.
The compensation level decision may be considered the most important one for individuals. In terms of both employee attraction and cost considerations, it is often considered by most managers as a primary consideration. Also, it seems essential to recognize that compensation level decisions can never be completely separate from job-mix, hiring standards, personal decisions, and internal labor markets/relationships. For these reasons, compensation level decisions are typically the focus of a manager’s attention. From the organization’s perspective, however, one individual’s compensation decision typically goes unnoticed at the end of the year. Structure decisions (and the level of those structures) are what show up on an income statement.
The term compensation level simply means the average compensation paid to workers at some level of analysis, e.g. the job, the department, the employing organization, an industry, or the economy. The importance of the compensation level decision to organizations rests on its influence in getting and perhaps keeping the desired quantity and quality of employees. If the compensation level is too low, the applicant pool may dry up and recruitment efforts may meet with little success. Equally serious, some employees (often the best ones) may leave. At the extreme, the organization may experience difficulties with state and federal regulatory bodies administering minimum compensation laws and prevailing wage laws. Also, the organization may be confronted with concerted organizing drives if no union is present, or pressing compensation demands from existing unions. It is less apparent, but equally real, that a low compensation level may attract only less efficient workers, with the result that labor costs per unit of output rise.
If, on the other hand, the compensation level is too high, equally undesirable results are likely. The competitive position of the organization may suffer. Turnover rates may drop below some desirable minimum so that the organization tends toward inflexibility or stagnation. Also, if compensation and salary levels are too high during periods of compensation controls by federal authorities, trouble may be forthcoming from these officials. Frequently, compensation and benefit level decisions are hidden in the type and structure of benefit, fringe, and retirement plans.
Changes in compensation levels have the most drastic effects on total payroll. Of course, other compensation decisions have payroll effects, but usually not nearly as great. Substantial sums of money can be involved, and for this reason alone an organization must pay close attention to compensation levels (both competitively and internally).
Nor are employees and their representatives any less concerned with compensation level decisions. It is here that the absolute amount of the compensation or salary rate is determined. Also, it is here that unions exert their major effect, and here that member loyalty is built or lost.
Finally, consumers and the general public have major interests in compensation level decisions, the consumer because wages are a major element in prices, and the general public because wages and salaries represent the major portion of national income. Also, too frequent or too drastic changes in compensation levels affect the health of our economy.


Q) Explain the Concepts of wages.

While evolving the wage policy, three concepts of wages are generally considered, namely,
1. Minimum Wages,
2. Fair Wages, and
3. Living Wages.

Minimum Wages
Minimum wage is the one that provides not merely the bare sustenance of life but also for the preservation of the efficiency of the worker. For this purpose, the minimum wage must also provide for some measure of education, medical requirements and amenities. Minimum wage may be tied by an agreement between the management and the workers, but is usually determined through legislation. This is more so in the unorganized sector where labour is unionised. In the fixation of minimum wages, besides the needs of workers, other factors like ability of the concern to pay, nature of the jobs, and so on, are also considered.

Fair Wages
Fair wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighbourhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for traders in general. Irrespective of the way in which fair wage is understood, it can be fixed only by comparison with an accepted standard wage. Such a standard can be determined with reference to those industries where labour is well organized and has been able to bargain well with the employers.

Living Wages
Living wage is a step higher than fair wage. Living wage may be described as one which should enable the wage earner to provide for himself and his family not on the bare essentials of life like food, clothing and shelter, but a measure of frugal comfort including education for children; protection against ill health; requirements of essential social needs; and/or measure of insurance against the more important misfortunes including old age. A living wage must be fixed considering the general economic conditions of the country. The concept of living wage, therefore, varies from country to country. In the more advanced countries, living wage itself forms the basis for the minimum wage.
In India, minimum wage is determined mainly for sweated industries under the provisions of the Minimum Wages Act, 1948. Fair wage is fixed for other industries considering prevailing rates of wages, productivity of labour, capacity of the employer to pay, level of national income and other related factors.
Tribunals, awards and wage boards play major role in fair wage fixation. Many people are of the opinion that living wage is a luxury for a developing country like India and can therefore be deferred.


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heavy duty notes, projects, reference on HR more to comeeeeeeeeeee
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time to study MOC
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