2nd Assignment of HRM
2nd Assignment of HRM
management (D COM652)
NAME ANMOL
SHAHID
CLASS M(COM)4rth
Semester
ROLL # 182911
SEC A
What do you understand by selecting a right employee for the right job? Discuss different
recruiting source, In your opinion which source is best to choose a right man
Ans:
Finding the right employee for a particular job requires an effective system that not only acquires
the employee of a company’s choice but also sets the new employee up for a smooth transition
into their new workplace. The following 5 steps breaks down this process:
The job description is the key to attracting the right employee. Everything in this description
needs to be defined accurately to ensure this information is a reflection of the employee you are
trying to attain. The job description should fit this criteria:
Define the position: State the key responsibilities of the position. This will help you weed out
the people who are unqualified for the job’s responsibilities.
List the essential qualifications & skills: This list should be articulate & concise so the
candidate can skim through the list quickly to know if the position is right for them.
Express the company’s ‘feel’: Each company has their own atmosphere unique to other ones.
Be sure to convey the company culture so the applicant can get a sense if this company is right
for them.
List the salary & benefits: This is crucial for setting the right expectations for the applicants.
Leaving out salary expectations can lead to an inflow of applicants who might require a higher
starting base.
Include resume & cover letter: Submission preferences – Make sure the applicant knows this
information so they can get you the right documents.
Once the job description is created, you need to let the appropriate circle of people know about
the job opening and all it entails. Here are a few ways to get your job opening known to the
right people:
Advertisements: This can include many forms of media such as newspapers, trade magazines,
e-mail blasts, websites, & social media. As most job postings are digital nowadays, this will
allow you to advertise your posting on many websites & social media outlets to get the word out
as quickly as possible.
Career Fairs: These are a perfect opportunity to meet potential candidates face-to-face and see
if they will be the right fit for the company.
A potential employee is not the only one who has to prepare for an interview. The employer must
make sure they follow the right protocol in order to pick out the right candidate:
Review their resume: Not only will this let you know if the person is qualified for the job but it
will also help you tailor your interview to ask the right questions of the applicant.
Know what you want to ask the applicant: Do you want to know their skill sets? Do you want
them to be innovative and go beyond the job requirements? You need to have a clear idea of
what you expect out of your potential employee in order to pick the right candidate.
Make pleasant conversation: The interviewee must feel comfortable when speaking to you.
This is not an interrogation. You want to learn as much as you can from the applicant so their
comfort will enable him/her to express themselves properly.
At this stage, you only know as much about an applicant as what they have told you. It is
important to dig deeper and find out as much as you can about someone who will be representing
your company. Pre-employment screenings enable you to find out important information about
your potential employee. The following screening options are very useful:
Criminal Records: It is important to know if your employees had any run-ins with the law that
could interfere with their job position. It is a good thing to know if your new driver has a history
of criminal driving offenses.
Education, Certifications, & Licenses: Does your candidate have the credentials they claim to
have? It is important to know if he/she is as qualified as they say they are.
Physical Abilities: Is your potential employee healthy? Can they physically/mentally carry out
their job duties? Depending on the level of physical needs of a position, employers might choose
to perform a functional capacity test to evaluate the candidates’ physical ability to perform the
tasks.
Network Access: From keycards to internet connection, an employer will need to provide what
he/she feels the employee needs to do their job.
Files/Software: In order to complete their tasks, an employee may need access to files, forms, &
information essential to their work. If they are using a computer, they will need the necessary
software related to their job functions.
Training: The new employee may be qualified for the job but additional training may be
necessary for them to understand their new position. This may entail learning the company’s
product, procedures, and even the jargon used around the office.
1: Internal Recruitment
2: External Recruitment
He organizations has two options to fill the vacant posts of the upper level management by either
hiring employees from outside of the organization or by promoting the existing lower level
employees. Both ways have some advantages & disadvantages.
When there come job vacancies in the organization, the first priority that an organization focus is
replacement from internal environment of the organization. The existing employees of the
organization think that they should be preferred for the vacant jobs position of the organization
because they are already serving the organization with potential & commitment. Also the
recruiting management of the organization has access to the records of its existing employees in
order to determine which employee has the potential to bear the higher level responsibilities.
Another feature of recruitment from the internal environment is that it is much cost effective.
Job Posting
Many organizations prefer to promote their entry level employees to the higher level positions
and therefore such organizations maintain human resource planning system. The human resource
planning system uses the replacement charts & succession plans to point out & promote
employees to the higher level positions. The performance appraisals are reviewed for the purpose
of identifying the employees that have potential & desire to be promoted. The internal
recruitment increases the motivation among existing employees for effective work & this would
finally enhance the morale of employees.
Job Posting
Job posting is also used for the internal recruitment by the organizations. The organization
informs its employees about the new job opening through publications, bulletins & personal
letters. The main reason of job posting is to communicate with the employees about the vacant
posts. Following are guidelines for the effective job posting.
The job specifications should be communicated clearly so that the employees can ascertain by
themselves that either they are eligible for the post or not.
All the applicants must be informed about the decisions made by the management.
There are several ways of external sources of recruitment. The organization must clearly
determine the types of positions that need to be filled along with the best recruiting methods so
that favorable results would be generated.
The organization is concerned with the external recruitment in order to fill low level post,
acquire different background employees with unique ideas & obtaining of required skills that
existing employees do not possessed. Following are the sources of external recruitment.
Community Colleges
Organizations contact with the vocational & high schools for the recruitment of employees for
the post of entry level & operative.
Community Colleges
Community colleges serve as sources for the external recruitment of employees for the relatively
higher posts. There are graduates that are passed from these colleges and who possess
marketable skills.
Many organizations contact colleges & universities for search of potential new employees related
to the technical & managerial areas. Many universities publish their booklets that contain
information about qualification & potential level of their students so that the organizations
searching for fresh employees are facilitated.
The job positions that require experience and skills can be filled effectively by contacting the
employees of competing organizations.
Unemployed
Q#2
Ans:
The Selection is a process of picking the right candidate with prerequisite qualifications and
capabilities to fill the jobs in the organization.
The selection process is quite lengthy and complex as it involves a series of steps before making
the final selection. The procedure of selection may vary from industry to industry, company to
company and even from department to department.
Employment tests:
The comprehensive Interview:
Those applicant’s who pass the initial screening, application for,, and required tests are typically
given a comprehensive interview. FIRIVI interviewers, senior managers within the organization,
a potential supervisor, potential colleagues, or some or all of these may interview the applicant.
the candidates who qualify the above tests are called for the employment interview. This
interview is done to get more information about the candidate, to give him the actual picture of
what is required from him, to check the communication skill of the candidate etc. for senior
position post; a panel is prepared who take the interview. At the end of interview of each
candidate the members of panel discuss about the candidate and give him the grades.
Background Investigation:
The next step in the process is to undertake background investigation of those applicants who
appear to offer potential as employees. Background investigations include police verification,
certificate from Local Chairman etc. steps prior to making a job offer is conducting background
checks to review candidates’ criminal record, to verify employment history and eligibility, and to
run credit checks. Some organizations also check social media accounts (Facebook, Twitter, etc.)
to make sure potential employees are likely to represent the company in a professional manner.
Drug testing may also be warranted, depending on the nature of the job.
Q#3
Why employee training is important for employee and organization? How training needs
are evolved?
Ans:
Training of employees and mangers are absolutely essential in this changing environment. It is
an important activity of HRD which helps in improving the competency of employees. Training
gives a lot of benefits to the employees such as improvement in efficiency and effectiveness,
development of self confidence and assists every one in self management.
The stability and progress of the organization always depends on the training imparted to the
employees. Training becomes mandatory under each and every step of expansion and
diversification. Only training can improve the quality and reduce the wastages to the minimum.
Training and development is also very essential to adapt according to changing environment.
1: Addressing Weakness:
Every employee is weak at certain skills every employee will not be perfect, which you need for
the position. If the employee certain skills match and if you know you can strengthen its skill by
training, hire them or assign tasks to them, definitely your employee will work hard to stand on
your expectations.
2: Improving Performance:
Once the employee gets the desired skills required for the task to execute. Their weakness will
turn into their strengths and they get the better understanding what and how to execute with
better ideas.
3: Fostering Growth:
The main aim of any organization is to get development and growth for the effects they put on.
Growth can be achieved if all the workforce of an organization pays equal attention to
development. That requires the skilled and ambitious employees to handle the situation. By
providing training to your employees, you’re providing them the space to learn and grow.
4 : Enhancing Satisfaction:
Employees feel confident in gaining skills. Training helps the employees to perform tasks easily
and also they can innovate new strategies to execute the task. This builds some level of
satisfaction in employees.
5: Reducing Turnover:
Initially, when you train your staff, it will cost you time and money. Once the employee gets
skilled in their role they can provide you better revenue than before. It reduces the frustration
level of both the employee and the employer. Expertise brings the quality of the work and
development of the organization.
When conducting a needs analysis, human resource development professionals will often work
with subject matter experts to determine the complexity of the problem and learning objectives.
The first step in conducting a needs analysis is to figure out who the stakeholders are including
whether there is a subject matter expert that will be involved. Once all the necessary parties have
been engaged, human resource development professionals will:
1: Discuss, clarify, and determine the goal and desired outcomes of the training. A clear
objective (or several) will be written to describe these goals. For example, at the end of the
training employees will be able to speed up production by 20 percent.
2: Make connections between the desired outcome to the skills employees need to acquire. For
example, to speed up production, employees need to learn to use a new software program.
3: Identify what learners need to know to meet the desired outcome. For example, what are the
specific functions they will need to know from the software program.
4: Use data to identify what learners actually know and do not know. Are there learners who do
know how to use the software program and the necessary functions? If so, what is their
production and how does it compare to the desired outcomes? These questions may find that the
list of competencies need to be revised.
5: Identify how many employees will need to be trained. Consider how long this will take and
what level priority this training will take.
6: Determine how the training will be conducted. With the advent of online learning many
options are now available for training and development. Some organizations will prefer to stick
with traditional face to face learning or on the job training, however, others may want to leverage
the flexibility of online learning platforms. The teaching modality should be aligned to the
desired learning outcomes.
7: Consider the cost of this training and the benefits. To what extent will this training address the
performance gaps? What will be the impact on profitability when all employees are trained? Cost
factors include training time (unproductive time for employees), content development time or
content vendor cost, travel and logistical expenses.
8: After the training, there needs to be an evaluation in place to determine whether the training
made an impact on productivity. The training is only profitable if actual change occurs. This data
should be compared to initial performance data obtained at the beginning of the analysis.
Q#4
Ans:
Higher Productivity
Employee Advancement
Top performers within an organization deserve to advance when the opportunity arises.
Performance management systems help human resources personnel and department leaders
identify top-rated employees and develop them for the next step in their careers. Without a
process to identify top performers, talented individuals can get stuck in jobs beneath their skill
level and end up quitting as a result. Also, coaching for improved performance is a major part of
performance management and can help employees overcome their shortcomings, so they can
advance their careers and strengthen their organization.
Employees who are properly screened, trained and coached have a propensity to create higher-
quality products and services. This is because they have the proper skills and care about their
jobs enough to perform them properly, while at the same time looking for new and innovative
ways to remove waste from their processes and systems. Delays, rework, excess transportation
and overproduction are all kept to a minimum when a performance management system is
implemented. This includes on the production floor and in administrative offices.
Performance management systems have corrective action procedures, which can help personnel
correct deficient behavior in a quick and professional manner. There are also defined guidelines
for employee termination, making it easier for employers to obey the law when they terminate an
employee. A system of corrective action steps can make it easier for employers and managers to
adjust their coaching techniques to better lead their personnel, too. Without this facet of
performance management, easily correctable behavior could lead to terminations.
Q#5
Explain different career stages like, Exploration, Establishment, Mid-career, late career.
Ans:
The proper way to analyze and discuss careers is to look at them as made up of stages. We can
identify five career stages that most people will go through during their adult years, regardless of
the type of work they do. These stages are exploration, establishment, mid-career, late career
1. Exploration
Many of the critical choices individuals make about their careers are made prior to entering the
workforce on a paid basis. Very early in our lives, our parents and teachers begin to narrow our
alternatives and lead us in certain directions.
The careers of our parents, their aspirations for their children and their financial sources are
crucial factors in determining our perception of what careers are open to us.
The exploration period ends for most of us in our mid-twenties as we make the transition from
college to work. From an organisational standpoint this stage has little relevance since it occurs
prior to employment.
2. Establishment
The establishment period begins with the search for work and includes our First job, being
accepted by our peers, learning the job and gaining the first tangible evidence of success or
failure in the real world. It is a time which begins with uncertainties, anxieties and risks.
It is also marked by making mistakes and learning from these mistakes and the gradual
assumption of increased responsibilities. However, the individual in this stage has yet to reach
his peak productivity and rarely gets the job that carries great power or high status.
3. Mid-career
Most people do not face their first severe dilemmas until they reach their mid-career stage. This
is a time when individuals may continue their prior improvements in performance or begin to
deteriorate. At this point in a career, one is expected to have moved beyond apprenticeship to
worker-status.
Those who make a successful transition assume greater responsibilities and get rewards. For
others, it may be a time for reassessment, job changes, adjustment of priorities or the pursuit of
alternative lifestyles.
4. Late career
For those who continue to grow through the mid- career stage, the late career usually is a
pleasant time when one is allowed the luxury to relax a bit. It is the time when one can enjoy the
respect given to him by younger employees. During the late career, individuals are no longer
learning, they teach others on the basis of the knowledge they have gained.
To those who have stagnated during the previous stage, the late career brings the reality that they
cannot change the world as they had once thought.
Q#6
What is recruitment, recruitment goals and how we can recruit employees in global
perspective.
Ans:
Define Recruitment:
The overall recruitment goals are always defined as the consensus among three main recruitment
measures. The recruitment strategy has to define the right, expected mix of the measure to
satisfy the organization. The recruitment measures are:
1: Quality of candidates
2: Time to Hire
3: Cost of Recruitment
It is crucial to understand, the company cannot reach the highest values in all three goals with its
recruitment process. The organization has to determine the right recruitment strategy to get the
best value added recruitment process for the organization.
The quality of candidates is especially crucial for many organizations. The organization offering
complex products and services needs sophisticated, highly skilled and experienced job
candidates.
It is crucial to set the right requirements of the organization in the quality of job candidates. The
organization usually does not need the best candidates for all the job positions. The junior
accountant is almost the same in most companies. It is necessary to realize the differences in job
functions. HR and top management have to identify the key job positions.
The quality of candidates should be driven by the regular job design. The job design should
cover the critical business areas where HR Recruiters should not make any compromise in the
quality of job candidates.
2: Time to Hire:-
Time to Hire is critical in the business areas, which are driven by the volumes. The call centers
and data typing functions prefer the speed of recruitment to the quality of delivered job
candidates.
The time to hire has to be driven by the operational need of the business functions. The
specialized functions usually prefer longer time to hire when they are sure, they will receive the
best available job candidate.
The time to hire is a main driver to introduce and implement the changes in the recruitment
process. Time to hire drives the satisfaction of the line management with Human Resources
usually. HR usually introduces projects to increase the overall satisfaction of managers by
shortening time to hire.
3: Cost of Recruitment:-
The cost of the recruitment is extremely valuable for Human Resources. HR usually pays
invoices for the recruitment services provided by the external vendors. The top management
evaluates the performance of HR Management on the basis of realized cost savings in the
recruitment process. The implementation of cost-saving measures in the recruitment process is
critical.
The decrease in cost of the recruitment is crucial as it allows to spend the savings from the
recruitment process to other HR Processes. Other HR Processes can realize higher benefits in
building the competitive advantage of the organization than the recruitment process.
Q#7
Discuss different types of training, Discuss the methods involve in evaluating training
programs?
Ans:
Depending on the type of job, technical training will be required. Technical training is a type of
training meant to teach the new employee the technological aspects of the job. In a retail
environment, technical training might include teaching someone how to use the computer system
to ring up customers. In a sales position, it might include showing someone how to use the
customer relationship management (CRM) system to find new prospects. In a consulting
business, technical training might be used so the consultant knows how to use the system to input
the number of hours that should be charged to a client.
2: Quality Training
3: Skills Training
Skills training, the third type of training, includes proficiencies needed to actually perform the
job. For example, an administrative assistant might be trained in how to answer the phone, while
a salesperson at Best Buy might be trained in assessment of customer needs and on how to offer
the customer information to make a buying decision. Think of skills training as the things you
actually need to know to perform your job. A cashier needs to know not only the technology to
ring someone up but what to do if something is priced wrong. Most of the time, skills training is
given in-house and can include the use of a mentor.
4: Induction training:
Also known as orientation training given for the new recruits in order to make them familiarize
with the internal environment of an organization. It helps the employees to understand the
procedures, code of conduct, policies existing in that organization.
This training provides an overview about the job and experienced trainers demonstrates the
entire job. Addition training is offered to employees after evaluating their performance if
necessary.
6: Vestibule training:
It is the training on actual work to be done by an employee but conducted away from the work
place.
7: Refresher training:
This type of training is offered in order to incorporate the latest development in a particular field.
This training is imparted to upgrade the skills of employees. This training can also be used for
promoting an employee.
Satisfaction evaluation is the most basic measure for assessing the success rate of any training.
For the purpose, the trainer, usually, hands out a survey at the end of the course to test the
reaction of the participants.
Most of the time, it covers common questions like whether the participants enjoyed the training
or did they like the trainer. Moreover, would they want him or her back, in case any other
training program is initiated or do they feel as if it was a loss of their time? Generally, the
training evaluation ends here, since this method answers nearly all of the expectations, but still, if
someone likes to dig deeper, then rest of the methods can also do the job.
2: Knowledge Acquisition
Knowledge acquisition is the second level of the training evaluation and involves the
examination as the attachment of the training course to check that how much the participants
have learned from the training course. It is a fact that most of the participants take training
seriously only if they know that they are required to demonstrate the concepts that they have
learned during the training.
In this method, participants are supposed to take the exam, after the training. The instructors or
the trainers check and grade the responses, and share the results with the students as well as the
training managers. This is done so that any gaps in the expected and acquired knowledge can be
quickly sewn up.
A reliable and valid examination, as the training ends, can help in determining if the participant
has understood and learned the concept or not. It can point out the participants that did not gain
anything from training, leaving even further room for the support those who did. Furthermore, it
can highlight areas that might need additional coaching or further training.
3: Behavioral Application
The third method of evaluation deals with the behavioral application of their newly acquired
skills. It also involves monitoring the changing behaviors as the skills and knowledge are applied
to the tasks. Even though the first method of training evaluation, satisfaction assessment, is
sufficient in most of the cases, but whenever the method of behavioral application is needed, it is
used with the combination of the first two.
Q#8
Ans:
Purpose of Interview
The purpose of a job interview is twofold: It offers the employer valuable insight into your
personality and abilities, and it allows you the chance to discern whether your credentials and
career goals match up with what the company seeks.
1: Prepare for the Job Interview
The purpose of a job interview is to figure out if both parties will benefit from the hire.
Determine if the job and work environment meets your needs. Use your notepad and pen to write
down information or jot down a word that will remind you to ask a certain question. Make sure
your clothes are clean and pressed. Allow sufficient travel time to ensure you arrive five minutes
early to the front desk.
Smile and show demonstrate enthusiasm. Allow the interviewer to take the lead. Concise,
informative answers are appreciated more than lengthy stories. Sell yourself and what you have
to offer. Interviewers want to know why hiring you will benefit their company. Tout your
achievements at previous jobs and be specific with numbers. The reason you are in this meeting
is to convince the other party - even if you are not completely sure you want the job - of your
work ethic and abilities. If you cut costs that greatly impacted the bottom line, say it explicitly.
Find out everything you need to know in order to make an informed decision about the job.
Evaluate the match between you, the company culture and the position. If flip flops and a tank
top was your wardrobe staple at your last two jobs, will switching to a suit and tie every day be
cumbersome? Be realistic about job duties, travel time, benefits and the salary.
Be candid about your career objectives and your desired career path. Find out if the company has
an established career track or an executive training program. This shows the interviewer you are
motivated and career driven, two traits that companies look for when hiring. High turnover is
something that affects company morale and the bottom line, so companies seek people looking
for a stable future.
The job interview is the perfect place to show off good manners and your ability to clearly
articulate thoughts and ideas. Remember to make the appropriate amount of eye contact, without
staring, because it conveys honestly, trust, intent and likability during the interview. In addition,
when the interview closes, offer extra copies of your resume in case the interviewer wants to
give it to other people. Offer references from previous jobs. Write a follow-up thank-you note to
each person who met with you. Offer references from previous jobs.
Types of Interviews:
1. Preliminary Interview:
The interviews conducted to screen the applicants to decide whether further detailed interview
will be required are called preliminary interviews. The candidate is given freedom by giving job
details during the interview to decide whether the job will suit him.
One of the drawback associated with the preliminary interview is that it might lead to the
elimination of many desirable candidates in case interviewers do not have much and proper
experience in evaluating candidates. The positive argument, if any, for this method is that it
saves time and money for the company.
2. Patterned Interview:
In this interview, the pattern of the interview is decided in advance. What kind of information is
to be sought or given, how the interview is to be conducted, and how much time is to be allotted
to it, all these are worked out in advance. In case interviewee drifts, he/she is swiftly guided back
to the structured questions. Such interviews are also called standardised interviews.
3. Depth Interview:
As the term itself implies, depth interview tries to portray the interviewee in depth and detail. It,
accordingly, covers the life history of the applicant along with his/her work experience,
academic qualifications, health, attitude, interest, and hobbies. This method is particularly
suitable for executive selection. Expectedly, depth interview involves more time and money in
conducting it.
4: Structured Interview
A structured interview is typically formal and organized and may include several interviewers,
commonly referred to as a panel interview. An interviewer who has a more structured style will
usually begin with what is known as an “icebreaker” question. The icebreaker is used to relax
you before the more serious questions are asked. A discussion about the weather might be used
or perhaps a question about the traffic on your way to the office.
Next, the interviewer may talk for a few minutes about the company and the position. During
this time, the interviewer may describe the day-to-day work responsibilities and the general
company philosophy. He or she may then ask you a series of questions regarding your past
educational, co-curricular, and work experiences.
Finally, the interviewer may ask if you have questions for him or her. You should always have
several questions prepared. This type of interview is structured and formal.
5: Unstructured interviews:
When the interview does not follow the formal rules or procedures. It is called an
unstructured interview. The discussion will probably be free-flowing and may shift rapidly form
on subject to another depending on the interests of the interviewee and the interviewer
Often companies request an initial telephone interview before inviting you in for a face to face
meeting in order to get a better understanding of the type of candidate you are. The one benefit
of this is that you can have your notes out in front of you. You should do just as much
preparation as you would for a face to face interview, and remember that your first impression is
vital. Some people are better meeting in person than on the phone, so make sure that you speak
confidently, with good pace and try to answer all the questions that are asked.
In the conversational interview, no predetermined questions are asked, in order to remain as open
and adaptable a possible to the interviewee’s nature and priorities; during the interview the
interviewer “goes with the flow”.
The guide approach is intended to ensure that the same general areas of information are collected
from each interviewee this provides more focus than the conversational approach but still allows
a degree of freedom and adaptability in getting the information from the interviewee.
Here the same open-ended questions are asked to all interviewees; this approach facilitates faster
interviews faster interviews that can be more easily analyzed and compared.
It is an interview where all interviewers ask the same questions and asked to choose answers
from among the same set of alternatives. This format is useful for those not practiced in
interviewing
Q#9
Ans:
The satisfactions one gets from the job itself are its intrinsic rewards. These satisfactions are
self initiated rewards, such as having pride in one’s work, having a feeling of accomplishment, or
being part of a team. The techniques of flex time, job enrichment, shorter work weeks, and job
rotation, can offer intrinsic rewards by providing interesting and challenging jobs and allowing
the employee greater freedom.
On the other hand extrinsic rewards include money, promotions, and fringe benefits. Their
common thread is that extrinsic rewards are external to the job and come from an outside source,
mainly, management.
While we have stressed the role of extrinsic rewards in motivation, we should point out that
intrinsic and extrinsic rewards may be closely linked.
Rewards may or may not enhance the employees financial well being. If they do they can do this
directly through wages, bonuses, profit sharing, and the like, or indirectly through supportive
benefits such as pension plans, paid vacations, paid sick leaves and purchase discounts.
Non financial rewards are potentially at the disposal of the organization. They do not increase
the employee’s financial position, instead of making the employees life better off the job, non
financial rewards emphasize making life on the job more attractive.
The old saying “one man’s food is another man’s poison” applies to the entire subject of
rewards, but specifically to the area of non financial rewards. What one employee views as
something I’ve always wanted, another finds superfluous. Therefore care must be taken in
providing the right non financial reward for each person, yet where selection has been done
assiduously, the benefits to the organization should be impressive.
Some workers are very status conscious. An attractive office, a carpeted floor, a large executive
desk, or a private bathroom may be just the office furnishing that stimulates an employee
towered top impressive job title, their own business cards, their own secretary, or a well located
parking space with their name clearly painted underneath the “Reserved” sign.
Performance based rewards are exemplified by the use of commission, piecework pay
plans, incentive systems, group bonuses, or other forms of merit pay plans. On the other hand,
membership based rewards include cost of living increases, profit sharing, benefits, and salary
increases attributable to labor market conditions, seniority or time in rank, credentials (such as a
college degree or a graduate diploma), or future potential (the recent M.B.A. from a prestigious
university). The demarcation between the two is not always obvious. For instance company paid
membership in a country club or use of company owned automobiles by executives may be
given for membership or performance. If they are available to say all middle and upper level
executives, then they are membership base. However, if they are made available selectively to
certain managers based on their performance rather than their entitlement, which of course
implies they can also be taken away, we should treat them as performance based rewards for
Q#10
Define different appraisal method and suggest best method of performance appraisal.
Ans:
Numerous methods have been devised to measure the quantity and quality of performance
appraisals. Each of the methods is effective for some purposes for some organizations only.
None should be dismissed or accepted as appropriate except as they relate to the particular needs
of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are computed and final
conclusions are derived.
Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large
number of employees covered, no formal training required. Disadvantages – Rater’s biases
Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or
No based questions is prepared. Here the rater only does the reporting or checking and HR
department does the actual evaluation.
Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to give
relative ratings
Forced Choice Method: The series of statements arranged in the blocks of two or more are
given and the rater indicates which statement is true or false. The rater is forced to make a
choice. HR department does actual assessment.
Forced Distribution Method: here employees are clustered around a high point on a rating
scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that
the performance is conformed to normal distribution.
Advantages – Eliminates
Advantages – Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are
high.
Advantages – Useful for managerial level promotions, when comparable information is needed,
Performance Tests & Observations: This is based on the test of knowledge or skills. The tests
may be written or an actual presentation of skills. Tests must be reliable and validated to be
useful.
Advantage – Tests may be apt to measure potential more than actual performance.
Disadvantages – Tests may suffer if costs of test development or administration are high.
Essay Method: In this method the rater writes down the employee description in detail within a
number of broad categories like, overall impression of performance, promote ability of
employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses
and training needs of the employee.
Advantage – It is extremely useful in filing information gaps about the employees that often
occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not
good writers. They may get confused success depends on the memory power of raters.
Cost Accounting Method: Here performance is evaluated from the monetary returns yields to
his or her organization. Cost to keep employee, and benefit the organization derives is
ascertained. Hence it is more dependent upon cost and benefit analysis.
Management By Objectives:
It means management by objectives and the performance is rated against the achievement of
objectives stated by the management. MBO process goes as under.
Establish new goals and new strategies for goals not achieved in previous year.
2. Psychological Appraisals:
These appraisals are more directed to assess employees potential for future performance rather
than the past one. It is done in the form of in-depth interviews, psychological tests, and
discussion with supervisors and review of other evaluations. It is more focused on employees
emotional, intellectual, and motivational and other personal characteristics affecting his
performance. This approach is slow and costly and may be useful for bright young members who
may have considerable potential. However quality of these appraisals largely depend upon the
skills of psychologists who perform the evaluation.
3. Assessment Centers:
This technique was first developed in USA and UK in 1943. An assessment center is a central
location where managers may come together to have their participation in job related exercises
evaluated by trained observers. It is more focused on observation of behaviors across a series of
select exercises or work samples. Assessees are requested to participate in in-basket exercises,
work groups, computer simulations, role playing and other similar activities which require same
attributes for successful performance in actual job. The characteristics assessed in assessment
center can be assertiveness, persuasive ability, communicating ability, planning and
organizational ability, self confidence, resistance to stress, energy level, decision making,
sensitivity to feelings, administrative ability, creativity and mental alertness etc.
4. 360-Degree Feedback: