KENYATTA UNIVERSITY

SCHOOL OF BUSINESS

DEPARTMENT: BUSINESS ADMINISTRATION

UNIT CODE: BBA 301

UNIT NAME: HUMAN RESOURCE MANAGEMENT 1

INSTRUCTOR: Dr. ROSEMARIE WANYOIKE

CONTACTS: 0722841714

        [email protected]

TABLE OF CONTENTS

LESSON 1 : INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

LESSON 2 : WHAT IS HUMAN RESOURCE MANAGEMENT

LESSON 3:  HISTORY AND GROWTH OF HUMAN RESOURCE MANAGEMENT

LESSON 4 : HUMAN RESOURCE PLANNING

LESSON 5 : JOB ANALYSIS            

 
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LESSON 6 :  RECRIUTMENT AND SELECTION PROCESS

LESSON 7:  TRAINING AND DEVELOPING HUMAN POTENTIAL

LESSON 8 : PERORMANCE APPRAISALS      

 

LESSON ONE: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Preface

This module aims at providing all students undertaking to study Human Resource Management
and all practicing managers with a complete, comprehensive review of essential Human
Resource Management concepts and techniques in a simple, reader friendly, understandable yet
concise manner.

While the module focuses almost entirely on essential Human Resource Managementtopics like
Job Analysis, Human Resource planning, Compensation, TrainingRecruitment and Selection ,
practical applications such as how to conduct a job analysisexercise , how to conduct human
resource planning exercise or how to establish a payplan are used throughout the module to
provide students with practical, hands-on human resource management skills that they will find
useful when practicing in the real world.

This is a book about managing people or what is now known as Human Resource Management
(HRM). HRM is a management discipline aimed at improving organizational effectiveness by
utilizing a firm’s human resources. It’s also about managing in a changing world .In the past
managers aimed for success in a relativelystable and predictable world. Today however in the
hyper turbulent environment of theb twenty-first century managers confront accelerating change.
They are facing constant  nnovation in computer and information technology and a chaotic world
of changing markets and consumer lifestyles. Today’s organization must be able to transform
and renew to meet these changing forces.

The subject of human resource management covers a combination of wide areas. It borrows from
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psychology, business organization, training of industrial relations. This wide range of subject
matter causes problems for the student i.e that the core reality for a human resource management
unit is usually scattered over numerous text books. This is a problem especially in our public
universities which are still short of good HRM text books.

In writing this module it is my belief & hope though that this course / book will provide a strong
foundation in human resource management not only to the students undertaking HRM or to the
HR managers out there but to all those who are in the business of managing people.

INTRODUCTION

An organization is nothing without human resources. What is Kenya Breweries without its
employees? A lot of factories, expensive equipment and some impressive bank balances.
Similarly if you remove the employees from such varied organizationsas Coca-Cola, Microsoft,
and Toyota what would you have left? Not much.

The above paragraph is meant to dramatize something that most of us take for granted. When
you think of about the millions of organizations that provide us with goods and services, any one
or more which may probably employ you during your lifetime, how often do you explicitly
consider that these organizations depend on people to make them operate? It is only under
unusual circumstances like when the teachers’ in public schools went on strike and the children
were not being taught or when the lecturers went on strike and no learning was taking place at
the University or when the city council workers went on strike and our streets were filled with
filth that we recognize the important role that employees play in making organizations work.

But how were these people in these organizations found and selected? Why do they come to
work everyday? How do they know what to do in their jobs? How does management know the
workers are performing effectively? How do we decide how much to pay each worker or each
manager? Will today’s worker be prepared for work that will be expected of him in twenty, thirty
years from now? These are some of the questions whose answers lie in the subject of Human
Resources Management.

 

LESSON 2 WHAT IS HUMAN RESOURCE MANAGEMENT

Objectives:

By the end of this lesson the student should be able to explain what Human Resource
Management is and give an appropriate definition of HRM.

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To understand what Human Resource management is we must first review what managers do.
Most experts agree that management is getting work done through others Management can be
said to be the process of getting activities completed with and through people .Most experts also
agree that there are 5 basic functions all managers perform: planning, organizing, staffing,
leading and controlling. In total these functions represent the management function.

Some of the specific activities involved in these functions include:

Planning: Establishing goals and standards, developing rules & procedures; developing plans
and forecasting-predicting or projecting some future occurrence

Organizing: Giving each subordinate a specific task; establishing departments, delegating

authority to subordinates, establishing channels of authority and communication; coordinating
the work of subordinates

Staffing : Deciding what type of people should be hired; recruiting prospective employees,
selecting employees, setting performance standards, compensating employees, evaluating
performance; counseling employees; training and developing employees

Leading: Getting others to get the job done; maintaining morale; motivating subordinates

Controlling: Setting standards such as sales quotas, quality standards or production levels;
checking to see how actual performance compares with these standards; taking corrective action

In this module we are going to focus on one of these functions: the staffing function, Personnel
Management or as it is usually called today Human Resource Management.

Human resource management refers to the practices and policies you need to carry out the people
or personnel aspects of your management job. These include:

 Conducting job analysis (determining the nature of each employees job)

 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (how to compensate employees)
 Providing incentives and benefits
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  Appraising performance
 Communicating (interviewing, counseling ,disciplining)
 Training and developing
 Building employees commitment

Human Resources Management (HRM) concerns the human side of the management of
enterprises and employees relations with their firms. Its purpose is to ensure that the employees
of a company i.e its human resources are used in such a way that the employer obtains the
greatest possible benefit from their abilities and the employees obtain both material and
psychological rewards from their work. Human Resources management is based on the findings
of work psychology and uses the techniques and procedures known collectively as personnel
management i.e that part of human resource management
concerned with staffing the enterprise, determining and satisfying the needs of people at work
and the practical rules and procedures that govern rela tionships between employees and the
organization.( Graham & Bennett,1998)

Human Resources Management can also be defined as the management of activities undertaken
to attract, develop, motivate and maintain a high-performing workforce  within the organization.
HRM involves moving towards corporate excellence by integrating the desires of individuals for
growth and development with organizational goals. (Bowin & Harvey, 2001)

It is people who design and produce the goods and services, maintain quality, market the goods
and services, use financial resources and develop strategies and objectives for the organization.
Without an effective workforce it would be impossible for an organization  to achieve its
objectives. The HR manager’s role is to develop an effective relationship between the
organization and its employees.

Human resource management efforts, then, are planned, systematic approaches to improving
organizational performance. They involve HRM programs aimed at the totalorganization or to
relatively large segments of it .The purpose of HR programs is to increase the effectiveness of
the system and also to develop the potential of all individual members. There are a series of
planned HRM activities which will ultimately influence the productivity of the organization
.These human resource activities will be discussed in the succeeding lessons of this module.

Decenzo (1993) gives a somewhat similar definition of Human Resources Management by

saying that it is a process consisting of the acquisition, development, motivation, and
maintenance of human resources. We can elaborate further on this definition of Human
Resources management .Let us reflect on the major activities existing within the functions of
acquisition, development, motivation and maintenance.

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(Equal Employment Opportunity) that have an impact on Human Relations Management. Human
Resource Management activities in any of the 4 functions are constrained or guided by these
external influences.

It has been argued that these forces have a major impact on Human Resource Management by
constraining the decision-making discretion of managers. Who can be hired and fired, how
personnel information is disseminated, what methods can be used for evaluating jobs and
employee performance, what equipment can and cannot be used, how wage rates are determined,
are just a few of the issues that constrained if not most, organizations.

Let us now look more closely at these HRM activities that are described:

1. Acquisition of Human Resources

The discussion of the Human Resource Management process begins with human resource
planning. It is here that management ensures that it has the right number and kinds of people, at
the right places, and at the right times, capable of effectively and efficiently completing the work
required so that the organization can achieve its overall objectives. The onset of much of the
human resources planning is job analysis. If human resource planning, uncovers the need to hire
additional employees, one must discover potential applicants. This requires locating candidates
recruiting sources, which we shall discuss in the lesson on recruitment. These potential
applicants must be screened to identify job applicants who are likely to be successful if hired.
We shall also discuss the selection process and specific selection devices.

The acquisition function is completed when the selected applicants have been placed in the
organization and have adapted to the organization’s culture and their work environment. The
organizations culture conveys how things are done and what matters. When employees have
adapted to the organizations’ culture they have learned the ropes. This is also called socializing
the new employee.

2. Development of Human Resources

Competent employees will not remain competent forever. Some are minimally qualified upon
entering the organization but require additional training or education. Others enter the
organization capable of performing at an optimal level but their skills become obsolete over
time. And of course, organizations change over time, and management must ensure that there is
an appropriate match of individual abilities with organizational needs for the future. Each of
these issues is considered in the development function.

Employee training gives individuals specific skills that they will use on the job. Management
development looks at practices for ensuring a continual flow of managers. These three topics
employee training, management development ,career development will be examined later in this

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module. When human resources have been developed effectively, one can expect to have
competent employees with up-to-date skills and knowledge.

3. Motivation of Human Resources

High performance depends on both ability and motivation. Many employees with extraordinary
talents do not perform satisfactory because they will not exert the necessary effort. Therefore we
desire to have capable employees who are also highly motivated

If a person is to perform effectively extrinsic factors such as job design, working conditions, job
security must be seen as satisfactory. But that alone is not enough. Many people also look for
intrinsic factors such as achievement, recognition and responsibility from their work. For
individuals who place high value on intrinsic factors, the absence of these factors can reduce one
’s willingness to exert high degrees of effort.

But other factors can also influence motivation. The performance appraisal process and its
outcome will affect an employee’s motivation. People expect their work to be objectively
evaluated if they think their efforts will be unfairly judged, motivation will decrease.

So it’s important to consider performance appraisals and how they are done. Furthermore the
rewards or punishments that follow the appraisal will influence motivation. Rewards,
compensation administration, benefits are considered in the motivation function. Discipline too
has an effect on motivation.

At this juncture if we have effectively motivated the individual who has up to date skills and
knowledge we can expect to have a competent employee who desires to exert a high level of
effort.

4. Maintenance of Human Resources

The objective of the last function is to retain people who are performing at high levels. This
requires that the organization provide safe and healthful working conditions and satisfactory
labor relations. If these activities are performed effectively we can expect to have competent
employees who are committed to the organization and satisfied with their jobs.

Why is Human Resource Management Important to All Managers

Why are these concepts and techniques important to all managers? Perhaps it’s easier to answer
this by listing some of the personnel mistakes you don’t want to make while managing:

For example you don’t want:

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  To hire the wrong person for the job- have someone who cannot perform or who cannot
fit in the organization
 To experience a high turnover due to poor policies because this is expensive to the
company
 To find your people not doing their best because they are not trained or motivated
 To waste you time on useless interviews
 To have your company taken to court for flouting the safety laws
 To have some of your employees demoralized because they think their     salaries  are
unfair and inequitable
 To allow a lack of training to undermine your organization ’s competitiveness
  To commit any unfair labor practices.

Carefully studying this book will help you avoid mistakes like these.

SUMMARY

Human resource management is an important subject .It is important because human resources
are the critical element to the organization .Without an effective workforce it would be
impossible for the organization to achieve its goals.

We can define human resource management as the management of activities undertaken to

attract, develop, motivate and maintain a high performing workforce within the organization.
HRM involves moving towards corporate excellence by integrating the desires of individuals for
growth and development with organizational goals.

There are basic functions all managers perform: planning, organizing, staffing, leading and
controlling. These represent what is often called the management process. Staffing is the
function focused on in this module. It includes activities like recruiting, selecting, training,
compensating, appraising and developing.

HR management is very much a part of every line managers ’ responsibilities These HR

responsibilities include interviewing, orienting, training and compensating to improve the worker
’s job performance.

The HR Manager and his her department carry out three main functions .First the HRManager
exerts line authority in his or her unit and implied authority elsewhere in the organization .He or
she exerts a coordinative function to ensure that the organization ’s HR objectives are
coordinated and implemented .And he or she provides various staff services to line management
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for example the HR Manager assists in the hiring, training, evaluating ,rewarding ,promoting and
disciplining of employees at all levels

 BBA 301 Assignment Assignment (2.2)

 Hidden from students:QuizREVIEW QUESTIONS Quiz

Not available unless: You get a particular score (Min : NA AND max : 100) in REVIEW
QUESTIONS

 

LESSON 3 THE HISTORY AND GROWTH OF HUMAN RESOURCE MANAGEMENT

Objective:

By the end of this lesson students will be able to describe how the field of human resource
management emerged and how it has evolved

Introduction

Human resources management emerged from personnel management which itself developed
from the activities of “industrial welfare workers” in the latter half of the nineteenth century.
Throughout the history of HRM a single common factor has been paramount – namely the needs
of people at work.

The foundation of modern HRM emerged from several interrelated sources. Theseinclude
conflict management associated with the tensions and contradictions which areinherent in the
employment relationship and the increased specialization of labor related to the growth in the
scale of work organizations ,the scientific approach of managementto managing people ,the
“empire building” activities of the specialists and the employment –related law of the last three
decades .

Stages In The History Of Human Resource Management

The first stage of development involved a handful of employers and philanthropists who,driven
by the desire to improve the conditions of people at work, initiated various programs for
bettering physical working environments and the quality of working life.

Stage two may be said to have emerged during the First World War when faced with acute labor
shortages and the urgent need to increase industrial productivity, governments in Europe and the
USA actively encouraged the systematic study of employer – employee relations and the human

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aspects of industrial work. This led to a fresh understanding of labor management problems and
hence to a more technical and sophisticated approach tothe personnel officer’s role.

The third stage was characterized by the advancement in the 1930’s and 40’s of various
academic theories of management and the integration of management studies into general
“”social science”

By the 1960’s specializations had developed within the personnel function which itself had
become recognized as a valuable discipline in its own right applicable to all forms and sizes of
business and work situation.

Company personnel policies and procedures now encompassed recruitment and selection,
training, industrial relations, labour planning, salary administration and employee appraisal.

Intense business competition in the 1980’s and 1990’s, the introduction of new production
technologies which depended heavily on multi skilled flexible working practices frequently
involving team working, and changing cultures at both the national and individual enterprise
levels, catapulted personnel management to increasingly critical positions within firms.
Personnel work became associated with wider business functions and with business strategy in
the round. Inevitably, therefore, personnel managers were more and more involved with general
business management and concerned with profit. maximizing activities such as staff motivation,
performance management, empowerment of workers total quality management (TQM),
organizational modification and so on. Human resourcing decisions had to be taken at the very
top level of management within a
company.

The history of human resource management reflected prevailing beliefs & activities held in
society about employees, the response of employers to public policy, reactions to trade union
growth and reactions to a hyper turbulent environment of the twenty first century where
managers confront accelerating change.

Evolution Of Human Resource Management.

PERSONNEL TO HRM

Personnel departments were once called “Health and Happiness” departments. The people
assigned to deal with personnel issues were often individuals who were past their prime. The
personnel department was seen as a place where less productive employers could be placed with
minimal damage to the organization’s ongoing operations. Individuals in the personnel
department were perceived as those responsible for planning company picnics, vacation
schedules, Christmas parties & retirement parties. Personnel as an activity was seen as a
necessary but unimportant part of the organization. Yet as the field of management begun to
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mature, more emphasis was being placed on the workers. Various studies revealed that
recognizing workers for the work they had done could influence their productivity.

Workers were becoming more demanding in what they wanted from a job and society by means
of law and legislation was placing new demands on employers

.
Examples of historical influences on the discipline of Personnel Management:

1911 Fredrick Taylor Publishes “Principles of professional management

1946 Employment Act was passed
1963 Equal pay act
1964 Civil Rights Act
1967 Age discrimination in Employment Act
1973 Health maintenance organization Act
1974 Employee Retirement income Security Act.
1986 Tax Reform Act

Events such as these mandated changes in personnel practices.

No longer could the personnel department be treated as a detour on the road to success.
Organizations had to hire the best qualified candidate without regard to race, religion, color, sex
or national origin. The individual hired needed to be trained to function effectively within the
organization. Furthermore once hired and trained the organization had to provide a means of
continuing the personal development of each employee. Practices were needed to ensure that
these employees maintained their productive affiliation with the organization. Finally work
conditions had to be established such that the work environment induced workers tostay with the
organization and simultaneously attracted new applicants to the organization.

In the past, managers aimed for success in a relatively stable and predictable world, today
however in the hyper turbulent environment of the twenty - first century managers confront
accelerating change. They are facing constant innovation in computer and information
technology and a chaotic world of changing markets and consumer lifestyle. Today’s
organization must be able to transform and renew to meet these changing forces.

HRM is an emerging behavioral science discipline that provides a set of methodologies for
systematically bringing about high performing organizations. Human resources management has
therefore become an increasing important element in organizations Robert Reich suggests that in
the future the organization’s ability to attract, develop and retain a talented work force will be a
critical factor in developing a high – performing organization.

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Personnel Management and Human Resource Management. Personnel Management is an
important element of the broader subject of Human Resource Management, although in practice
the two terms are frequently used  interchangeably – emphasizing the fact that the people
employed in a company are resources which are at least as important as financial or material
resources and must be given careful and expert attention.

The Institute of Personnel & Development has published the following definition. “Personnel
Management is that part of management concerned with people at work an with their
relationships within an enterprise. Its aim is to bring together and develop into an effective
organization the men and women who make up an enterprise and having regard for the well
being of the individual and of working groups to enable them to make their best contribution to
its success.

In particular personnel management is concerned with the development and application of

policies governing

 human resources planning

 education and training
 terms of employment,
 methods & standards of remuneration
 working conditions & employee services
 Formal & informal communication and consultation both through the representative of
employers and employees at all levels throughout the organization.
 Negotiation and application of agreements on wages and working conditions, procedures
for avoidance and settlement of disputes.
 Personnel management is also concerned with the human and social implications of
change in internal organization and methods of working and economic & social changes
in the community.

Further personnel management responsibilities:

  Conducting research into local wage levels to ensure that the firms reward system is
competitive with those in other organizations
  Incentives- devising remuneration systems to stimulate workers into enhanced
 effort & efficiency
 Administration of super annuation schemes & advising employees about their
 pension schemes and other entitlements
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   Maintenance of personnel records and statistics
 Preparation of accurate job descriptions and other recruitment aids.
 Implementation of health & safety regulations, accident prevention and the provision of
first – and facilities.
 Management training, development and succession planning
 Employer communications, transmitting information of interest to employers via,
newsletter, notice boards, briefing session

Another way of defining personnel management is to regard it as range of policies, institutions &
procedures which enable the principles of work psychology to be put intopractice .

The following relationships and differences between Human Resource Management (HRM) and
Personnel Management may be distinguished.

1. Personnel Management is practical utilitarian and instrumental and mostly concerned with
administration and the implementation of policies. Human Resources Management conversely
has strategic dimensions and involves the total deployment of Human Resource within the firm.
Thus for example HRM will consider such matters as:

The strategic approach to HRM involves the integration of personnel and other HRM
considerations into the firms overall corporate planning and strategy formulation procedures.

The strategic approach to HRM involves the integration of personnel and other HRM
considerations into the firms overall corporate planning and strategy formulation procedures. It is
proactive; seeking constantly to discover new ways of utilizing the labor force in a more
productive manner thus giving business a competitive edge. Practical manifestations of a
strategic approach to HRM might include

 ( The aggregate size of the organization labor force in the context of an overall corporate
plan ,     design of the organization etc.
  How much to spend on training the workforce, given strategic on target quality levels ,   
product prices, volume of production.
 The desirability of establishing relations with trade unions from the viewpoint of the
effective management control of the entire organization.
 Human asset accounting i.e the systematic measurememt and analysis of the costs and
financial benefits of alternative personnel policies e,g effects of various salary structures
and the valuation of the human worth of the enterprises employees.

 (i Incorporation of a brief summary of the firm’s basic HRM policy into its mission
statement.

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   Explicit consideration of the consequences for employees of each of the firm’s strategies
and major new projects.
 Designing organization structures to suit the needs of employees rather thanconditioning
the latter to fit it with the existing form of organization.
 Having the head of HRM as the firms board of directors.

More than ever before human resource managers are expected to contribute to productivity and
quality improvement. The stimulation of creative thinking, leadership and the development of
corporate skills.

2. HRM is concerned with the wider implications of the management of change and not just with
the effects of change on working practices. It seeks proactively to encourage flexible attitudes
and the acceptance of new methods

3. Aspects of HRM constitute major inputs into organizational development exercises.

4. Personnel Management is reactive and diagnostic. It responds to changes in employment law,

labor market conditions, trade union actions, government codes ofpractice and other
environmental influences. HRM on the other hand is prescriptive and concerned with strategies,
the initiation and the development of the fresh ideas

.
5. HRM determines general policies for employment relationships within the enterprise. Thus it
needs to establish within the organization a culture that is conducive to employee commitment
and cooperation. Personnel management on the other hand has been criticized for being primarily
concerned with imposing compliance with company rules aid procedures among employees
rather than with loyalty and commitment for the firm.

6. Personnel Management has short–term perspectives; HRM has long-term perspectives,

seeking to integrate all the human aspects of the organization into a coherent whol and to
establish high – level employee goals.

7. The HRM approach emphasizes the needs:

 For direct communication with employees rather than collective presentation

 To develop an organizational culture conducive to the adaptation of flexible working
methods
 For group working and employee participation in group decisions

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  enhance employees long – term capabilities, not just their competence at current duties.

A contentious view of the difference between HRM and Personnel Management is the
preposition that whereas the latter is pluralistic in orientation, HRM has a “unitaristic” approach.

Although the term “human resources management” has been in use since the 1960’s the work of
a number of U.S academics led to the term assuming a new meaning in certain contexts in the
1980’s & 1990’s. This new perspective on HRM emphasizes.

1.  Individualism rather than collectivism resulting from the long – term decline  in the
number of employees belonging to trade unions
2.  Wage systems based on personal contracts wherein a worker’s pay is set thro’ individual
negotiation with the firm as opposed to collective bargaining involving trade unions.
3. Increasing levels of casual and part-time employees
4. The idea that managers and workers have common interests of management and workers
in achieving company goals
5. The need for cost-cutting and lean production methods consequent to the ever increasing
international business competition
6. Greater emphasis on interpersonal relationships and communication using the latest
management techniques
7. . Flexible labor practices
8. Teamwork

Current Trends

A number of importance factors have altered the scope & nature of human resource management
in recent years notably the following.

1. Greater involvement of line managers in personnel management and a greater decentralization

and devolution of the function. Increasingly the managers are required to undertake duties
previously completed by personnel specialists. This results in part from firms seeking to cut costs
through reducing the sizes of theirpersonnel departments or partially in consequence of the view
that line managers ought to be able to complete this work.

2. Economic recession in the early1990’s the down sizing of organizations and a shift in the
nature of the relationship between management and labor.

3. New working methods based on flexible labor practices

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4. Recognition of the importance of a firms human resources as a means for securing competitive
advantage, spurred on by the success achieved by Japanese companies which pay greater
attention to the personnel role.

The Development & Role of Personnel /HRM

The management of personnel today therefore presents a greater challenge than ever before.
Each generation of employee is better educated and more enlightened than the preceding one.
They expect intelligent leadership and more considerable treatment. Because of the protection
afforded them by their unions and by government legislation. the employees of today are able to
reject arbitrary on unfair treatment that only few decades ago they would have been forced to
accept.

Meeting the growing challenges requires managers to have a through understanding of human
behavior. They must know how to avoid behavioral problems with subordinates and be able cope
with those that do arise. If employees are unionized, managers need to possess all understanding
of labor relations & be able to interpret & administer properly the agreement with the union.

Most important as a result of the growing body of law relating to personnel management it is
essential for managers to know what they legally can & cannot do in their relations with
employers & their unions. Fortunately for managers, a growing body knowledge relating to
personnel management is continuing to evolve as a result of research and the shared experience
of practitioners in helping managers to avoid mistakes of the past.

Summary

Successful management of human resources is essential to organizational success and the field
associated with it is in a transitional phase that expands the function to include both HRM &
personnel management. Both Personnel Management & HRM are necessary.

Though the terms Personnel Management and Human Resource Management are most often
used interchangeably Personnel Management is an important element of the broader subject of
Human Resources Management .Though there are some differences both emphasize that people
are an important resource and must be given careful and expert attention.

Personnel management is a set of activities encompassing the ongoing management of the

human resources within an organization.

The need for a separate HR department grows as an organization grows .Personnel /HR
departments can be highly centralized or decentralized depending upon the size and management
philosophy of the organization & upon the need for specialized knowledge of a limited set of
activities.
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HR departments are composed of HR generalists and HR specialists. A generalist has a broad
knowledge of a number of HR activities whereas a specialist has intensive knowledge of a
limited set of activities. interface between the HR. manager & operating manager creates a point
of contact on P/HR activities.

HRM MODEL

In recent years there has been relative agreement among HR specialists as to what constitutes the
field of HRM
The model that provided the focus was developed by the American Society for Training &
Development (ASTD). In its study ASTD identified nine human resource areas:

1. Training and Development focus: - Identifying & assessing and through planned learning
helping develop the key competencies which enable individuals perform current or future
jobs.
2. Organization & Development focus : assuring healthy listen and infra – unit relationships
and helping initiate and manage change
3. Organization /Job Design focus: defining how tassels, authority and systems will be
organized and integrated across organization units and in individual jobs.
4.  Human Resource Planning focus: determining organization major human resource needs,
strategies and philosophies.
5. Selection and staffing focus: matching people and their needs and capabilities
with jobs and career paths
6. Personnel research and information systems for assorting a personnel information
base
7. Compensation / benefits focus: providing personal problem solving counseling to
individual employees
8. Employees Assistance focus: providing personal problem solving counseling to
individual employee
9. Union / Labor Relations focus: assuring healthy / union organization relationship

Source: American Society for Training Development models for excellence (ASTD, 1983) These
nine areas have been termed spokes of the wheel in that each area impacts on the Human
Resource outputs quality of work life, productivity and readiness for change.

Let us now take a closer look at the outputs of this model

1. Quantity of the work

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Quantity of the work life is multi – faceted concept. The precise of quantity of work lifeis having
a work environment where employees activities become more important. This means
implementing procedures on policies that make the work less routine and morerewarding for the
employer. These procedures or * include autonomy, recognition,belonging, progress and
development and external rewards

 Autonomy deals with the amount of freedom that employees can exercise in their jobs.
For example if employers must get permission to purchase $2 in postage stamps to mail
job related material the freedom to act is significantly reduced

 recognition refers to being rewarded by others in the company. An individual

contribution to the organization is noticed and appreciated.

 - Belonging refers to being part of the organization is one who shares the organizations
values and is regarded as being a reversible part of the firm.

 - Progress & development refers to the “Internal rewards available from the
organizations’ challenges and accomplishment”

  And finally External rewards which are usually in the form of salary & benefits but also
include “Promotion, Rank and Status”

 - Taken together these components provide for the quality of work life for the individual
– if the quantity of work life is lacking, the work productivity may suffer.
 - Productivity is the quantity or volume of the major product or service that an
organization provides. In other words it is the amount of work that is being produced in
the organization in terms of how much & low well High productivity is what makes an
organization thrive without a good product or service to sell. Problems in an organization
are sure to arise accordingly productivity programs are becoming more popular with
organizations

 Readiness’ for change

 If one thing in the world would be said to be true is that things will never remain the
same. Change is a fact of life – in both our private & our work life’s

  Examples eg if you remain a bachelor all your life – people may be asking what is wrong
with you why are you not changing. Change is a part of life that’s why manyof us
allowed NARC because we wanted change.
 At the work site we must be aware that changes will occur. The change ay be subtle such
as getting a new boss, or it might be a major Endeavour – such as an organization
installing a computer system for the first time – autonomy many of the manual operators.
But change rarely comes easily for everyone

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  At the work site we must be aware that changes will occur. The change may be subtle
such as getting a new boss, or it might be a major endeavor – such as an organization
installing a computer system for the first time – automating many of the manual
operations. But change rarely comes easily for everyone in some cases it is resisted e.g.
imagine the secretary who has had twenty-five years experience in the organization being
made to go from a typewriter to a word processor. This can be traumatic and the change
could be resisted. How do you overcome this resistance? There are a few ways but
probably the greatest two would be to inform the secretary that the word processor was
designed to make her job more efficient; it was not designed to take over her job. The
fear associated with a possible treat to job security would negate any advantage that
might accrue by automating an office because this fear might manifest itself as decreased
morale.

To reduce the fear associated with change, training is important. Once the secretary has been
given time to learn how to use the new equipment and to experience how efficient it is and how
it makes her job easier the fear of change can be reduced. From an organizational perspective
employers must make changes to remain competitive. But it is also their responsibility to
communicate the forth coming changes to their employees, identify why changes are necessary
and lend their total support in ensuring that the change takes place. Through this process
employers can create a work atmosphere that news change as a positive and progressive
endeavor.

In the remaining lessons we will discuss the various activities involved in human resources
necessary to achieve these outputs. The HRM model presented in figure 1 is generic in nature
and is too broad for our purposes. Because of the interrelatedness of all the human resource
functions and the impossible complexing of studying them in that state, more specificity is
warranted. To accomplish this objective we offer a model that represents a more manageable
form.

This model reflects the major activities existing within the functions of acquisition, development,
motivation and maintenance.

Earlier we defined HRM as a process consisting of the acquisitions, develop, motivations and
maintenance. At the hub of this model are the external influences

 government regulations
 trade/labor unions
 management practice

Remember that human resource activities in any of the 4 functions are constrained or guided by
these external influences. The outer circle represent the flow of major activities in HRM. There

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is no beginning or end to the HRM process; it is a continual process within which each circle are
the major sub divisions of each function.

 HRP & JOB ANALYSIS File

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LESSON 4 HUMAN RESORCE PLANNING

Objective:

By the end of this lesson students should be able to

a) define human resource planning
b) explain the importance of human resource planning
c) conduct a human resource planning exercise
d) explain the benefits of Human Resource Planning

Njeri       :  Would you tell me, please which way I ought to go from here?
Onyango : That depends a good deal on where you want to go.
Njeri        :   I don’t care where
Onyango : Then it doesn’t matter which way you go!

Introduction

Before you can depart on a journey it is necessary to know your destination. The stepsyou take
before beginning any trip appear quite simple:

  determining where you are

  determining where you want to go
 finally, suggesting a route that can take you from where you are to where you want to be.

In an elementary form this is what planning is all about:

Knowing where you are going and how you are going to get there

Importance of Human Resource Planning

If an organization is to achieve its goals, it needs inputs: financial resources (such as money and
credit), physical resources (such as buildings and equipment), and people. Too often, managers
forget about how important that third factor the people variable is to the success of an

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organization. Many managers have failed because they have taken their human resources for
granted.

To dramatise the value of the human factor consider for a moment an organization like the Xerox
Corporation, the duplicating machine company. It is a publicly held company whose Stock
Exchange has sales of over $11 billion a year and employs over 102,000 people. The
hypothetical questions we pose are these:

 If these 102,000 people were to quit at once, what would happen to the
 organization?
 What would happen to the price of the company’s stock?.

the answers are

(1) The organizationâl survival would immediately be in jeopardy.

(2) The market price of the stock would plummet!

The point being made is simple:

Organizations are composed of people and these people represent one of the organizational most
valuable assets. However because the organization does not own people, as it does capital and
physical assets, this resource is seldom given proper attention.

To ensure the healthy operation of the organization whether it be a business firm, a parastatal , a
university or a professional football team its supply of human resources must be sufficient.
Towards this objective of continuing healthy operations the organization requires human
resource planning

People represent the most flexible resource available to senior managers of an organization.
Deploying people in the right numbers, with the right skills and in the right place is fundamental
to success. The reason that we have had to do so many retrenchments in Kenya especially in the
public sector is because there was a lack of proper human resource planning in the first instance.
People were just recruited at random without first establishing if there was a real need to employ
them in the first place. As a result organizations became bloated with excess manpower. It is also
the reason why donor agencies like the IMF, World Bank have implored the Kenyan
Government to cut back on staff in some organizations especially those in the Civil Service
amidst huge protest.

Human resource planning is one of the most important elements in a successful HRM program.
A survey of chief executives found that 85% listed HRP as one of the most critical management
undertakings of this decade. But what does the term human resource planning mean?

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Definitions of Human Resource Planning

Specifically human resource planning is the process by which an organization ensures that it has
the right number and kinds of people, at the right places, at the right time, capable of effectively
and efficiently completing those tasks that will help the organization achieve its overall
objectives.

Human resource planning then translates the organization objectives and plans into the number
of workers needed to meet those objectives. Without clear-cut planning an estimation of an
organization ’s human resource need is reduced to mere guesswork.

In many organizations, few employees outside of the top executive group really know the short
and long range objectives. It is not surprising, therefore, that management may find itself without
the necessary human resources to fill unexpected vacancies, make replacements created by
natural attrition or meet opportunities created by the growth or development of new products or
services because critical human resources are unavailable.

Human resources planning (HRP) may also be defined as an attempt to forecast how many and
what kind of employees will be required in the future and to what extent this demand is likely to
be met. It involves the comparison of an organization ’s current human resources with likely
future needs and consequently, the establishment of programs for hiring, training, redeploying
and possibly discarding employees. Effective Human Resource Planning should result in the
right people doing the right things in the right place at precisely the right time.

Human resource planning or manpower planning as it was originally called had its start after
World War II in the Industrial Training Boards in Great Britain whose mandate was to require
effective manpower planning at the industrial level .It resulted from the influence of socialistic
government policies in England to provide the correct number of skilled employees within
certain age groups for their national industries.

Although a few large companies have special departments to develop human resource plans and
forecasts most companies that employ up to a few thousand cannot afford to staff such specialists
.In some large companies the responsibility of human resource planning is assigned to the
Human Resource Manager. However regardless of where assigned, if a company is to grow and
prosper, the functions of human resource planning must be carried out effectively.

Human Resource planning systems depend upon three key factors:

1. Knowledge of the Human Resource Environment: this provides information to answer the
question, `What has been and is happening to our human resources?` The answer resides in the
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collection and analysis of such factors as labor turnover rates, recruiting effectiveness and levels
of training .These three factors comprise what is called the human resource audit. Other human
resource management environment factors that need to be considered in the human resource
audit are technological and economic changes. These changes ,while difficult to quantify must be
identified and evaluated.

2 Knowledge of the present corporate human resources. This is a prerequisite for planning for
the future The HRM manager must know what skills and potential are presently available before
beginning to plan. This initial inventory is called the human resource inventory.

3. Knowledge of the present and future objectives of Corporate Planning : this requires that
business plans and objectives must be expressed in meaningful human resource terms For
example consider the following : The 5 year objective is to increase our market share to 30% at a
rate of 6% per year resulting in the bottom line increase of $ 150,000 in sales volume .The
preceding statement needs to be changed to meet our criteria by reducing the expressed needs
into an expression of human resource required for each year of the planning cycle in terms of
type and level of skill. This is essential since such a statement of human resource requirements
represents the central core of human resource planning

Purpose of Human Resource Planning

 Human resources planning can help management in making decisions in the following
areas:

Recruitment
Avoidance of redundancies
Training and numbers and categories
Management development
Estimates of labor costs
Productivity bargaining
Accommodation requirements

                                               

The Importance of Company Objectives

The essential first step in company HRP is a statement of company objectives which covers
products, methods, markets, etc. From this is derived the demand for labor which is then related
to the supply of labor to produce the human resources plan.

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The implications of the human resources plan must then be considered by the top management of
the company incase company objectives need amendment – for example it may not be possible
to increase production by the planned amount because labor of the kind required is either
impossible to train in the time available or does not exist in the quantity needed.

Company HRP needs continuous adjustment because the goals of an organization are unstable
and its environment uncertain. It is also complex because it involves so many independent
variables- invention, population changes, consumer demand, foreign and domestic competition,
etc. It must include feedback because if the plan cannot be fulfilled the objectives of the
company may have to be modified so that they are feasible in human resource terms

Steps In Long-Term Company Human Resource Planning

In step format the Human Resource Planning process will involve the following steps

1. The first step in HRP requires

(a) Assessing the current status of the organization ’s resources:

 a human resource inventory describes skills available within the organization.

 A job analysis provides information about jobs currently being done.

2. The second step is to review the organization ’s overall objectives and revenue projections.

3. The third step translates the organization ’s revenue projections into a forecast of demand for
human resources.

4. The fourth step involves an assessment and forecast of internal and external supply sources.

5. The final step in the human resource planning process consists of matching the forecasts of
future demand and supply. This will highlight shortages and overstaff positions.

A long term company human resources plan is usually regarded as one which attempts to
forecast for about 5 years ahead. The company must consider the demand for labor, its potential
supply (with corrections for its present misuse, overuse or under-use) and the external
environment. By studying the interaction of all these factors it can then produce a plan showing
how many and what kind of employees are expected to be required in the future.

The main points to be considered are:-

(a) the creation of a company HRP group including the managers in charge of the main functions
within the company.
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(b) The statement of human resource objectives in the light of company objectives by
considering

 capital equipment plans

  reorganization e.g. centralization or decentralization
 changes in products or in outputs
 marketing plans
 financial limitations

(c) The present utilization of human resources in particular

 numbers of employees in various categories

  estimation of labor turnover for each grade of employee and the analysis of the effects of
high and low turnover rates on the organization ’s performance.
 amount of overtime worked
  amount of short-time
  appraisal of performance and potential of present employees
 general level of payment compared with that in other firms.

Note that for all the above accurate and complete personnel records are essential.

(d) The external environment of the company

  recruitment position
  population trends
  local housing and transport plans
 national agreements dealing with conditions of work
  government policies in education, retirement, regional subsidies, etc.

(e) The potential supply of labor in particulars

  effects of local emigration and immigration

 ieffects of recruitment or redundancy by local firms
 possibility of employing categories not now employed e.g. part-time workers

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  changes in productivity, working hours and/or practices.

The Final Company HRP

After considering and coordinating these factors a human resources plan may then be made,
showing in detail, by function, occupation and locations, how many employees it is practicable
to employ at various stages in the future.

The following should appear in it:

  Jobs which will appear, disappear or change

 To what extent redeployment or retraining is possible
  Necessary changes at supervisory and management levels
  Training needs
  Recruitment, redundancy or retirement programs
  Industrial relations implications
  Arrangement for feedback in case modifications in the plan or company
 objectives are necessary.
  Details of arrangements for handling any human resource problems arising from labor
deficits or surpluses (e.g. early retirement or other natural wastage procedures)

The Advantages of Human Resource Planning

These include :
1. The organization should be better equipped to cope with the human resourcing consequences
of changed circumstances.

2. Careful consideration of likely future human resource requirements could lead the firm to
discover new and improved ways of managing human resources.

3. Labor shortfalls and surpluses might be avoided

4. It helps the firm create and develop employee training and management succession programs

5. Some of the problems of managing change may be foreseen and their consequences mitigated.
Consultations with affected groups and individuals can occur at an early stage in the change
26
process: decisions can be taken unhurriedly and by considering all relevant options rather being
taken in crisis situations.

6. Management is compelled to assess critically the strengths and weakness of its labor force and
personnel policies.

7. Duplication of effort among employees can be avoided i.e. coordination and integration of
workers efforts is improved.

When agreed the plan must be communicated to all levels of employees but particularly to
managers and unions or employee representatives; it is often necessary and advisable to
negotiate with the trade unions on the detailed implementation of the plan.

A short term company HR plan which usually covers a period of up to one year ahead is much
more common than a long term plan. Many firms do not have the quality of management to
forecast long-term objectives or they feel that the nature of their business makes it impossible to
look ahead for more than one year. A short-term manpower plan is comparatively easy because a
firm will usually make a production or marketing plan for a year ahead involving budgets, orders
for new materials and components and sales quotas. From this can be derived the amount of
direct labor and the amount of indirect labor may be estimated partly by fixed commitments and
partly as a rule thumb.

Limiting Factors

In practice human resource planning can be difficult and often inaccurate. Chief reasons are:-

  type of industry – some depend on new product development or work on tendering
basis so that plans can only be short term because is never known whether a tender will
be accepted.
 opposition or skepticism among members of management.
 the difficulty of forecasting social and economic changes accurately, positively is an era
of high unemployment.
 need to have complete and accurate employee records maintained for at least the last 5
years.

In more general terms, the possible benefits from a planned approach to the acquisition, use and
deployment of people throughout the organization include:-

 appropriately skilled and flexible workforce

  ability to respond to change

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   stability in the core of the workforce
 reduced need to recruit externally
  improved morale and employee relations
  improvement in quality of products/services
  higher productivity.

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LESSON 5: JOB ANALYSIS

Objectives:

By the end of this lesson students should be able to:

• Explain the nature of job analysis
• Explain its purpose and uses
• Describe the methods of collecting job analysis information
• Be able to conduct a job analysis
• Write Job descriptions
• Write Job Specificatons

Job Analysis Defined

A Job analysis is a systematic exploration of the activities within a job. Job analysis is the
procedure for determining the duties and skill requirements of a job and the kind of person who
should be hired for it.

The analysis produces information on job requirements which is then used for developing job
descriptions and job specifications.

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A job description is a list of a job’s duties, responsibilities, reporting relationships, working
conditions and supervisory responsibilities, reporting relationships, working conditions and
supervisory responsibilities. It is one product of a job analysis.

A job specification is another product of job analysis. It is a list of a job’s “human requirements”
that is the requisite education, skills, personality and so on. It is another product of a job analysis.

Job analysis can also be defined as the process of gathering information about a job. It provides
information in several areas including:-

 How much time is taken to complete basic tasks.

  How are tasks grouped together into a job
  How can a job be designed so that employee performance can be improved?
  What kinds of skills are needed to perform a given job?
  What kind of person is best suited for a certain type of job.
  What group of tasks can be handled by a team or small group?

Note :

This information provides a foundation for other HR activities.

In simple words we can therefore say that job analysis indicates what activities and
accountabilities the job entails. There is no mystery to a job analysis; it is just an accurate
recording of the activities involved

During job analysis the supervisor or HR specialist normally aims to collect one or more of the
following types of information:

1. Work activities – information is usually collected on the actual work activities performed
such as cleaning, selling, teaching or painting. Such a list may also indicate how, why and when
the worker performs each activity.

2. Human behaviors – information on human behaviors like sensing, communicating, decision

making and writing may be collected. Included here  be information regarding human job
demands such lifting weights, walking long distances and so on.

29
3. Machines, tools, equipment and work aids used. Included here would be information
regarding products made, materials processed, knowledge dealt with or applied (such as finance
or law) and services rendered (such as counseling or repairing)

4.Performance standards: Information is also collected regarding performance standards (in

terms of quantity, quality or speed for each job duty for instance) by which an employee in this
job will be evaluated

5. Job context: - Included here is information about such matters as physical working
conditions, work schedule, and the organizational and social context for instance in terms of the
number of people with whom the employee would normally have to interact. Also included here
might be information regarding incentives for doing the job.

6. Human requirements: - Finally, information is usually compiled regarding human

requirements of the job such as job-related knowledge or skills (education, training, work
experience) and required personal attributes (aptitudes, physical characteristics, personality,
interests).

Uses Of Job Analysis Information

The information produced by job analysis is the basis for several interrelated HR management
activities

1. Recruitment and Selection

Job analysis provides information about what the job entails and what human characteristics are
required to carry out these activities. Such job description and job specification information is
used to decide what sort of people to recruit and hire.

2. Compensation
Job analysis information is also essential for estimating the value of and appropriate
compensation for each job. This is so because compensation (such as salary and bonus) usually
depends on the job’s required skill and education level, safety hazards, degree of responsibility
and so on – all factors that are assessed through job analysis.

We’ll also see that many employers classify jobs into categories and job analysis provides the
information for determining the relative worth of each job so that each job can be classified.

3. Performance Appraisal
A performance appraisal compares each employee’s actual performance with his or her
30
performance standards. It is often through job analysis that experts determine the standards to be
achieved and the specific activities to be performed.

4. Training
Job analysis information is also used for designing training & development programs because the
analysis and resulting job description show the skills and therefore training that are required.

5. Ensure complete assignment of duties

The job analysis is also useful for ensuring that all the duties that have to be done are in fact
assigned to particular positions. For example in analyzing the current job of your company’s
production manager you may find she reports herself as being responsible for two dozen or so
specific duties including planning weekly production schedules, purchasing raw materials and
supervising the daily activities of each of her first-time supervisors. Missing, however, is any
reference to managing raw material or finished goods inventories. On further investigation you
find that none of the other manufacturing people is responsible for inventory management either.
Your job analysis has identified a missing duty to be assigned. Missing duties like this are often
uncovered through job analysis.

As a result job analysis plays a role in remedying problems of the sort that would arise if for
example there was no one assigned to manage inventories.

Job Analysis Methods

There are various techniques you can use for collecting information on the duties, responsibilities
and activities of the job and we will discuss the important ones in this section. The methods
therefore that managers use to determine job elements and the concomitant knowledge for
successful performance include the following:

1. Observation Method:
Using this method, a job analyst watches employees directly or reviews films of workers on the
job. While the observation method provides first hand information, workers in many cases do not
function most efficiently when they are being watched. Thus distortions in the job analysis may
occur. This method also requires that the entire range of activities be observable; possible with
some jobs but impossible for many – e.g. most managerial jobs.

2. Individual Interview Method.

Using this method job incumbents are selected and extensively interviewed. The results of these
interviews are combined into a single job analysis. This method is effective for assessing what a
job entails but is very time consuming.

31
3. Group Interview Method.
This method is similar to the individual interview method except that a number of job
incumbents are interviewed simultaneously. Accuracy is increased in asserting jobs but group
dynamics may hinder its effectiveness.

4. Technical conference Method

This method utilizes supervisors with extensive knowledge of the job. Here, specific
characteristics of a job are obtained from the “experts.” Although a good data gathering method,
it often overlooks the incumbent workers’ perceptions about what they do on their job.

5. Diary Method
This method requires job incumbents to record their daily activities. It provides much
information but is seldom applicable to job activities. The diary method is the most intrusive of
the job analysis methods requiring much work on the part of the incumbent and accordingly
requiring much time. To capture the entire range of work activities this method may have to
continue for long periods of time.-all adding to its cost.

Steps In Conducting Job Analysis

The six steps in doing a job analysis are as follows:

Step 1: Identifying the use to which the information will be put, since this will
determine the types of data you collect and how you collect them. Some data collection
techniques like interviewing the employee and asking what the job entails and what his
responsibilities are good for writing job descriptions and selecting employees for the job. Other
job analysis techniques e.g. the position analysis questioner do not provide qualitative
information for job descriptions but rather numerical ratings for each job. These can be used to
compare jobs to one another for compensation purposes.

Step 2: Review relevant background information such as organization charts, process charts, and
job descriptions. Organization charts show how the job in question relates to other jobs and
where it fits in the overall organization. The chart should identify the title of each position and,
by means of its interconnecting lines, show who reports to whom and with whom the job
incumbent is expected to communicate. A process chart provides a more detailed understanding
of the work flow than is obtainable from the organization chart alone. The existing job
description if there is one can provide a starting point for building the revised job description.

Step 3: Select representative positions to be analyzed. This is done when many similar jobs are
to be analyzed and it is too time-consuming to analyze, say the jobs of all assembly workers.

32
Step 4: Next actually analyze the job by collecting data on job activities, required employee
behaviors, working conditions and human traits and abilities needed to perform the job.

Step 5: Review the information with job incumbents. The job analysis information should be
verified with the worker performing the job and with his or her immediate supervisor. This will
help to confirm that the information is factually correct and complete. This “review” step can
also help gain the employee’s acceptance of the job analysis data and conclusions by giving that
person a chance to review and modify your description of his or her job activities.

Step 6: Develop a job description and job specification. A job description and a job specification
are usually two concrete products of the job analysis. The job description is a written statement
that describes the activities and responsibilities of the job as well as important features of the job
such as working conditions and safety hazards. The job specification summarizes the personal
qualities, traits, skills and background required for getting the job done, it may be either a
separate document or on the same document as the job description.

Class activity:

Develop a job description and job specification for your current job. If not working at the
moment prepare a job description and job specification for a job that you are nfamiliar with.

Summary

Job analysis is the procedure for determining the duties and skill requirements of a job and the
kind of person who should be hired for it. In fewer words we can say that job analysis indicates
what activities and accountabilities the job entails A job analyst seeks to collect information on
work activities, human behaviors, machines, tools, equipment, work aids, performance standards,
job context and human requirements. The methods that managers can use to collect this
information include observation, individual interview, group interview, structured questionnaire,
technical conference and the diary method. Job analysis information can be used for making
decisions on recruitment and selection, compensation, performance appraisal, training and to
ensure complete assignment of duties .

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LESSON 6 THE RECRUITMENT AND SELECTION PROCESS

Objectives:
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By the end of this lesson students should be able to
• Discuss the recruitment and selection process
• Discuss the pros and cons of the various recruitment and selection methods

Introduction

Emphasizing the essential nature of the recruiting function in today ’s business environment,
Peter Drucker notes that ‘every organization is in competition for its most essential resource:
qualified, knowledgeable people” An organization needs to hire the most qualified people it
can at the most competitive price. Before an organization is able to hire an individual, it must
locate qualified applicants who are looking for work. How does a company attract these people?
This is the recruiting process and it represents one of the major responsibilities of the HR
Manager

Case

Merck, the pharmaceutical company in U.S.A has been rated as the most admired company is a
fortune magazine survey. Richard Markhan, head of worldwide marketing for the company,
credits its success to attracting, developing and keeping good people. He says “We look at
recruiting with the same kind of intensity as we do discovering new molecules in the lab.” Part
of the Merck competitive advantage is their approach to recruiting. Their focus is on business
and the need to hire the best people they can find.

In Lesson 4 we discussed the human resource planning .Successful human resource planning will
tell us about our manpower needs. Once we know these needs we will want to do something
about them .Human resource planning therefore helps us see the future openings and whether
these will be filled by inside or outside candidates.

Sometimes the term succession planning is used and this refers to the process of planning how
the company ’s most important executive positions will be filled. The fundamental employment
planning decision is whether projected positions will be filled internally or externally. In other
words should the projected open positions be filled by current employees or whether they should
be filled by recruiting outside candidates.

Like any good plans, employment plans are built on premises. If you are planning for
employment requirements, you ’ll usually need three sets of forecasts:

 One for personnel needs

 One for the supply of inside candidates
 And one for the supply of outside candidates

1. First predict the demand for your product or service ie the need for product and service.
2. Next project the volume of production required to meet these estimates
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 3. Finally, relate personnel needs to these production estimates.

Once personnel needs are projected the next step is to build up a pool of qualified applicants

Definitions of recruitment

Recruitment can be defined as the first part of the process of filling a vacancy; it includes the
examination of the vacancy, the consideration of sources of suitable candidates, making contact
with those candidates and attracting applications from them.

We can also define recruitment in other ways several definitions have been offererd by several
authors as given below :

Recruiting is the discovering of potential candidates for actual or anticipated organizational

vacancies. Or from another perspective it is a linking activity – bringing together those with
jobs to fill and those seeking jobs. (Decenzo, 1993)

Recruiting may be defined as the process of seeking, attracting and identifying a pool of
qualified candidates in sufficient numbers to fill current and future workforce needs. (Robert
Bruce Bowin, 2000)

Once you have been authorized to fill a position the next step is to develop an applicant pool,
probably using internal recruitment or other recruitment sources described next. Recruiting is
important because the more applicants you have the more selective you can be in your hiring. If
only two candidates apply for two openings you may have little choice but to hire them. But if 10
or 20 applicants appear then you can employ techniques like interviews and tests to screen out all
but the best.

The Recruiting Process

The recruiting process therefore involves several steps: It begins with human resource planning
and job analysis, and a determination of the organizations short and long term personnel needs
based on these needs and existing conditions, the firm then recruits them both internal and
external sources. This provides a pool of qualified job applicants, and the final step then is the
selection from the applicant pool.

We will now discuss several sources of candidates including internal sources (promotion from
within) advertising, employment agencies, executive recruiters, college recruiting, the internet,
referrals and walk ins.

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Remember that it is unlawful to discriminate against any individual with respect to employment
because of race, color, religion, sex, national origin or age. Unless (religion, sex or origin are
bona fide occupational qualifications.

External Sources of Candidates

As mentioned earlier once the organization has become aware it needs additional employees the
HR Manager is faced with the decision about how to generate the applicant pool necessary to
satisfy labor needs. The organization can use internal sources and if necessary external sources
for generating a sufficient number of applicants whenever there is a shortage of labor and skills
inside the organization.

External recruiting is used when the organization is unable to fill its hiring needs from internal
sources. The organization may be growing too rapidly or may require highly specialized
(technical skills not available in the current work force. The organization may want new ideas
and approaches. When an organization decides to recruit from outside the organization the
process becomes more involved and uncertain. Very many vacancies are filled new external
sources; even when an internal candidate is transferred or promoted the final result is usually a
vacancy elsewhere in the company which has to be filled from outside. They are both advantages
and disadvantages to internal recruiting as we will see later.

Once it has been decided to reach out to external candidates it will use one or several of
the following external sources can be used:

1. Advertising
2. Employment Agencies / Temporary help agencies
3. College Recruiting as a source of candidates
4. Executive recruiting as a source of candidates
5. Referrals and walk ins as a source of candidates
6. Computerized Employee Database.
7. The internet.

Very many vacancies are filled from external sources ’ .Even when an internal candidate is
transferred or promoted. The final result is usually a vacancy elsewhere in the company, which
has to be filled from outside.

External recruitment can be time consuming, expensive and uncertain, although it is

possible to reduce these disadvantages to some extent with forethought and planning.

External sources can be divided into 2 classes:

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Those which are comparatively inexpensive but offer a limited choice for example walkins,
unsolicited applications.

Those which are comparatively expensive but give the employer access to a wider range
of candidates e.g. advertising, use of private agencies.

Even when unemployment is high certain categories of employees who possess scarce skills are
difficult to find and the employer may have to use the more expensive means of recruitment.
Other types for example unskilled workers can be found very easily using inexpensive means,
the problem then lies in selecting the suitable candidate from among a very large number of
applicants.

Recruitment is more likely to achieve its objective if recruiting sources reflect the type of
position to be filled. For example an advertisement in the Standard business employment section
is more likely to be read by a manager seeking and executive position in the K75,000 to
K100,000 a year bracket than by a watch repairer, seeking to find employment.

Don ’t look for the “right person in the wrong place”. e.g. don ’t look for a professional
with a number of years working experience at a college. At a college look for a management
trainee.

Certain recruiting sources are more effective than others for filling certain types of jobs

Let us consider several external sources of candidates. As we review each source try to see the
strengths & weaknesses in attempting to attract lower level and managerial personnel .

1.Advertising as a Source of Candidates

“Is your advertising getting results?” It sure is! Last week we advertised for a night
watchman and the next night we were robbed.”
The most popular method of recruitment is to advertise the vacancy and invite candidates
to apply to the company. To use advertisements successfully you need to address 2 issues.
- The media to be used.
- The ad ’s construction

The selection of the best medium-be it the Daily Nation, the Times or a technical journal
depends on the type of positions for which you are recruiting. To recruit professionals for
example a C.E.O or Accountant you should choose a suitable medium like the East African
Standard, for blue collar help you may choose other more suitable medium. It would not be
appropriate for example to advertise for the position of CEO on a placard outside the factory
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building or in the classified ‘help-wanted ” section of the dailies nor would it be medium. or
specialized employees you can advertise in trade and professional  lead-time that is usually
required; there may be a month or more between insertion of the ad and publication of the
journal. Some media for example the Nation is particularly good for its wide geographical
coverage such that the entire country can be targeted for coverage.

The advertisement can become the first stage in selection by describing the job and
qualifications required so comprehensively that borderline candidates will be deterred
from applying and good candidates encouraged.

The small amount of research that has been done in this field shows that information about the
job contributed much more to the effectiveness of an advertisement that its style or size. There is
also general agreement that including the word training in an advertisement increases the
response.

Advertising may be also made more effective and less expensive if the following
principles are observed.

a. The advertisement should contain a job specification and job description in miniature,
including the following:

  Job Title
 Description of job and employer
  Experience, skills and qualifications required.
 Age range
 Working conditions e.g. wage/ salary, fringe benefits
 Training given
  What action the candidate should take e.g. write a letter, telephone for an application
 form, etc.

b. It should appear in the appropriate publication e.g. professional journal for specialists.

c. Experiments should be made to test the response for different sizes headings,wordings, page
position, day of the week.

d. Careful records should be kept showing

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   Which publication was used
  Which date and day of the week
 Which position on the page
 Which style and size
 Names of the candidates replying to each advertisements
 Names of the candidates who are selected for the interview
 Name of the candidate who was successful.

e. The response should be analyzed so that advertising expenditure can be directed towards the
publication and style of advertisement which give the best result for a particular type of vacancy.

f. Rejected candidates should be sent a prompt and courteous letter; Inconsiderate treatment will
eventually detract from a company’s reputation and adversely affect the response to future
advertisements.

The small amount of research that has been done in this field shows that information about the
job contributes much more to the effectiveness of an advertisement than its style or size.

Sometimes other considerations besides cost and response must be kept in mind. The company
may decide that small advertisements are not consistent with its prestige or image and that large
advertisements must be used even though they can be shown to be wasteful. In this case part of
the cost of the advertisement should logically be paid out of the company ’s general
advertisement account as it is concerned as much with public relations as with recruitment.

On the other hand, prestige of the company can sometimes be made use of; a recruitment
campaign is very often more successful if it follows a national advertising campaign for a new
product which has brought the company into the public eye.

Other media, which may be used in advertisement, are billboards, subway and bus posters, radio
and television. For example radio is best when multiple jobs are involved, such as staffing a new
facility. Ads need to be carefully prepared. If the company name is  used, too many people may
respond and screening procedures for a large number of applicants can be costly. This is one of
the decisions in preparing a recruiting advertisement.

In addition the firm must be careful not to violate EEO requirements by indicating preferences
for a particular race, religion, national origin or sex.. While most employers know that
discriminating ads are generally illegal, questionable advertising still appears. Therefore, its
39
important to remember that ads that are sexspecific (calling for man, woman) are questionable as
are sex-related gender terms like yard man, repairman or ads implying a certain age ( such as
student, recent graduate or referee). Similarly also terms like bilingual or Japanese are also
questionable. Employers using ads like these may have to defend their rationale for limiting their
search to the type of person identified in the ad.

2. The Internet

Many company recruiters are now using the Internet as an easy and subtle method to contact
employed job candidates. This controversial turn is not restricted to the highly aggressive
technology companies but is now spreading to airlines, banks, oil and biotechnology companies.
Some companies have websites where they post vacant positions. It is fast and one can recruit
globally.

3. Employment Agencies as a source of Candidates

There are 2 basic types of employment agencies.

1. Government owned agencies
2. Privately owned agencies

Private agencies which are run as commercial enterprises for supplying employers with
candidates for jobs are also of 2 main types.
i) Office staff employment agencies-which mainly deal with clerical, typing and office machine
operator vacancies.

ii) Selection agencies for senior staff which usually undertakes the complete recruitment process
and the first stages of selection for managerial and professional vacancies. The agency analyzes
the job, prepares job and personnel specifications, advertises, sends out application forms, and
interviews selected candidates sometimes testing them also. The employer is then presented with
a short list of candidates, the career and qualifications of each being described so that he makes
the final choice

Private employment agencies are important sources of devices, white-collar and managerial
personnel. Such agencies charge fees for each applicant they place. Many private agencies now
offer temporary help service and provide secretarial clerical or semi-skilled labour in a short-
term bases. These agencies can be useful in helping you cope with peal loads and fill in for
vacationing employees.

Some specific situations in which you might want to turn to an agency include the following.

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 1. Your firm does not have its own HR department and is not geared to do recruiting and
screening.
2. Your firm has found it difficult in the past to generate a pool of qualified applicants.
3.  A particular opening must be filled quickly.
4.  There is a perceived need to attract a greater number of minority or female applicants.
5. . The recruitment effort is aimed at individual who are currently employed who might
6. feel more comfortable dealing with employment agencies rather than competing with
them.

There are several other reasons to use as employment agency for some or all of your
recruiting needs advantages like;


Cut down on your interviews.

Interview only the right people.

Selecting only the most qualified candidates for your final living process.

Employment agencies are no panacea. For example an employment agency prescreens

applicants for your job but this advantage can also backfire. The employment agencies
screening may let poor applicants by pass the preliminary stages of your own selection
process.

Unqualified applicants may thus go directly to the supervisors responsible for the hiring, who
may in turn naively hire them.

Such errors show up in high turnover, absenteeism rates, morale problems, low quality and
productivity. Suitably successful applicants may be blocked from entering your application pool.

To help avoid such problems

1. Give the agency an accurate and complete job descriptions.
2. Periodically review data on accepted/rejected candidate.
3. Specify devices/tools the employment agency should use in screening.
4. Develop a long-term relationship with one or two agencies.

4. Head Hunting

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Very senior managers are sometimes recruited by a process known as “executive search” or
head hunting. Its advocates believe that the best candidates are not those who reply to
advertisements or look for new jobs in other ways but those who are successful in their
presentjobs and are not thinking of moving elsewhere.

On receipt of a commission from a client the headhunter will search for potential candidates.
i) In competing businesses (possibly obtaining names from company reports brochures)
ii) In the membership lists of professional bodies, trade association year books.
iii) Through confidential head hunting networks.

Selected individuals are then approached discreetly and following a discussion regarding
the job and its remuneration, one or two of them are introduced to the client firm.

Advantages to Headhunting are:

1. Headhunters should possess expert knowledge of the salary levels and fringe benefits
necessary to attract good calibre candidates. Also they will analyze the vacancy, and offer an
opinion about the type of person required, will conduct initial screening, administer
psychometric tests etc. This saves the client many administrative and advertising expenses.

2. Possibly, top managers already in employment will not bother to read job advertisements,
newspapers and other conventional means and so might not be reached by these means.

3. Senior managers prepared to make a move sometimes make this known to leading headhunters
even though they would not openly apply to competing companies.

4. If a targeted candidate does not want the job, he/she may suggest someone else who is equally
suitable and who may be interested.

5. Recruiting firms are assured that candidates presented to them will almost certainly be well
equipped for the vacant position.

6. The anonymity of the recruiting organization is preserved until the final stage in the
procedure.

Criticisms of Headhunting/executive Search :

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1. Headhunting is highly disruptive to successful businesses, which stand to lose expensively-
trained senior manager

2. It can be used to avoid equal opportunities laws on recruitment and selection

3. A headhunted individual might subsequently be enticed by other headhunted to leave his/her

new firm after a short period. To avoid this some companies attach “ golden handcuffs” to
senior management positions i.e they pay large cash bonuses, which are only available to
executives who stay with the firm a certain number of years.

4. Arguably head hunters rely too heavily on existing networks and trade contacts, creating
thereby a glorified “ old boy system” which ignores good people from other sources.

5. Headhunters ’ fees are far higher than for conventional employment agencies.

6. An unsuitable candidate may bribe the headhunter to recommend that person for the vacant
job.

7. The headhunter might acquire confidential information about the client which would then be
passed on to competing firms.

8. Headhunters are not subject to the same long-term accountability as personnel managers
employed within the business.

Executive recruiters are special employment agencies retained by employers to seek out top
management talent for their clients. These firms can be very useful. They have many contacts
and are especially adept at contacting qualified candidates who are not actively working and are
good at analyzing jobs. They can also keep your firms ’ name confidential until late in the
search. The recruiters fee might actually turn out to be insignificant compared to the cost of the
executive time saved. But there are some pitfalls. As an employer it is essential for you to
explain completely what sort of candidate is required- and remember that some recruiters are
more of sales people than professionals. They may be more interested in persuading you to hire a
candidate than in finding one who will really do the job. Therefore be prepared for some in-depth
dissecting of your request.

Guidelines:
1. Make sure the firm you hire is capable of conducting a thorough search.
2. Meet the individual who will be handling your assignment.
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3. Ask how much the search firm charges.
4. Choose a recruiter you can trust
5. Talk to some of their clients.

5. College Recruiting as a Source of Candidates.

Many promotable candidates are originally hired through college recruiting. This is therefore an
important source of management trainees, as well as professional and technical employees. There
are two main problems with campus recruiting. First it is relatively expensive and time
consuming for the recruiters. Second recruiters are some times ineffective or unprepared. Many
recruiters often do not screen their student candidates. For example student ’s physical
attractiveness often outweighs more valid traits and skills. One main function as a recruiter is
screening, which means determining whether a candidate is worthy of further consideration and
then attract to your firm. A sincere and informal attitude, respect for the applicant as an
individual and prompt follow up letters can help you sell the employer to the candidates. Many
employers maintain connection with universities, colleges and schools but candidates are usually
available from these sources only at one time of the year.

6.Computerised Employee Databases

Some firms sell resume databases. Organizations can quickly and efficiently gain access
to prospective applicants by using a database.
In general data bases can be classified into 5 categories:
1. Databases maintained by executive search firms.
2. Data bases maintained by University alumni groups.
3. Databases owned by private agents .
4. Corporate data bases.
5. Databases open to the general public.

Organization can also gain access to a large pool of potential applicants by developing
partnerships with government affiliated job services

7. Walkins

Direct applications made at your office- are a major source of applicants. They should be treated
with respect. Remember to always give a positive image of your firm as a recruiter.

Recruiting a more diverse work force

It is not just socially responsible, it is a necessity.
Older workers as a source of candidates
Is it practical in terms of productivity to keep old workers on?
The Answer is Yes!
Age related changes in physical ability, cognitive performance and personality traits have little

44
effect on workers output except in the most physically demanding tasks. Similarly creative and
intellectual achievements do not decline with age and absenteeism drops as age increases.

Older workers also usually display more company loyalty than youthful workers, and tend to be
satisfied with their jobs and supervision and can be trained or retrained as effectively as anyone.

However the company must do several things to make it an attractive place in which the older
worker can work specifically:
- Examine your personnel policies
- Develop flexible work options
- Create or redesign suitable jobs
- Offer flexible benefit plan

Other Recruiting Sources

More and more employers are turning to relatively non-traditional sources of applicants.

Moonlighters

Moonlighters have often been shunned by employers on the assumption that workers withfull-
time jobs at other firms might not have the required commitment to a second employer. Yet more
employers are finding that moonlighters take a second job because they must and that their
commitment to their second employer is thus high enough to do their jobs well.

Retired and exiting military personnel are another source that a firm may consider

Note:

Line and staff cooperation in recruitment as in all other functions is essential. The HR manager
who recruits and initially screens for the vacant job is not usually the one responsible for
supervising its performance. He must know exactly what the job entails and this, in turn, means
speaking with the supervisor involved. For example the HR Manager might want to know
something about the behavioral style of the super visor and members of the work group.

Is it a tough group to get along with, for instance? He/ she might also want to visit the worksite
and review the job description with the supervisor to ensure that the job has not changed, ensure
the description was written and to obtain any additional sight to the skills) and talents the worker
45
will need..

Line and staff cooperation in recruitment and selection

The HR manager who recruits and initially screens for the vacant job is seldom the one
responsible for supervising its performance. He/she must know what the job entails and this in
turn, means speaking with the supervisor involved. The HRM may want to know the behavioral
style of the supervisor and members of the group – is it a tough group? He may also want to
visit the work site and review JD with the supervisor to ensure that the job has not changed since
the description was written and to obtain additional insight into the skills and talents the new
workers will need.

One of the best sources of Job candidates is the existing workforce. Later we will look a
the advantages of recruiting internally.

INTERNAL RECRUITING SOURCES

Internal recruiting seeks applicants for positions among those currently employed. Most
organizations seek to fill positions with current employees. One study indicated that 96%of the
companies use internal recruiting beyond entry-level positions.

Organizations can use job or kills inventories for identifying internal applicants jobs openings. It
is unlikely, however that the manager is aware of all existing employees who are interested in a
job opening.

One method of solving this problem is called Job posting or job biddings:

Announcements of positions are made available to all current employees through bulletin boards,
news letters and other company information sources.

1. HRM Job Posting

In the past job posting often used bulletin boards and company publications for advertising job
openings. Currently job posting has become one of the more innovative recruiting approaches
used by organizations. Many companies such as Hewlett-Parkard now apply job posting as an
integrated part of a comprehensive career development system. Job postings are now frequently
computerized and easily accessible to all employees. Computer posting systems allow the
employee to available job opening with their own skills and experience. The posting presents

46
information so the employee knows what needs to be done if they wish to apply for this position
in any size of firm the principal shall apply. To fill an opening look at your current employees
first? Do you need someone for marketing? Your hard working clerk already a member of your
team may be enthusiastic about making a move but still stay with your organization.

2. Referrals

Another internal source of recruitment is a referral system in which present employee are asked
to encourage friends or relatives to apply. You may be amazed at the connections your people
have. Referrals are perhaps the most often used recruiting tool for many small organizations.

Some organizations even offer a “finders fee” or monetary incentive for successful
referrals. If they are used selectively referrals of this kind can be a powerful recruiting technique.
Organizations must be careful, however, not to unintentionally violate equal employment laws,
while they are using employee referrals. As an example in EEOCV. Detroit Edison the US Court
of Appeals found problems of racial discrimination that are related to using referrals in
recruitment.

The court stated:

The practice of relying on referrals by a predominantly new employees in the market place for
jobs was found to be discriminating. This suggests that employee referrals should be used
cautiously especially if the workforce is already row in protected classes. It also suggests that it
might not be wise to rely exclusively on referrals but rather to use them as supplements to other
recruiting activities.

In a tight labor market, many companies are paying their employees referral bonuses for new
recruits who join their company. Some HRM departments are paying a commission to human
resource employees for the information systems employees they recruit. All of this increases
recruiting costs than using outside recruiting firms. Most organizations will attempt to develop
their own employees for positions beyond the lowest level.

Advantages of promotion from within

  It is good public relations

  It builds morale
  It encourages good individuals who are ambitious.
 It improve the probability of a good selection since information on the individual ’s
performance is readily available.
 It is less costly than going outside to recruit.
 Those chosen internally already know the organizations
47
  When carefully planned, promotions from within can also act as a training device for
developing middle aid top level managers.

Disadvantages to using internal sources

 Obviously it can be dysfunctional to the organization to utilize inferior internal sources

only because they are there, when excellent candidates are available on the outside.
 However an individual from the outside may appear more attractive because the recruiter
is unaware of the outsider ’s faults.
 The organization should avoid excessive in-breeding. Occasionally it may be necessary to
bring in some “new blood” to broaden the present ideas, knowledge enthusiasm and
to question the “but we ’re always –doing-it –that –way mentality.

The organization personnel files should provide information as to which employees might be
considered for positions opening up within the organization.. Manager- replacement charts and
job postings-in many organizations it is standard procedure to “post” any new job openings
to “bid for the position”

Factors influencing Recruiting efforts

Although all organizations will at one time or other engage in recruiting activity, some do so to a
much higher extent than others. Obviously size is one factor. An organization with one hundred
thousand employees will find itself recruiting potential applicants much more often than an
organization with one hundred employees. However certain other variables will influence the
extent of recruiting.

1. Employment conditions in the community where the organization is located will

influence how much recruiting takes place.
2. The effectiveness of past recruiting efforts will show itself in the organization ’s
historical ability to locate and keep people who perform well.
3. Working conditions, salary ad benefit packages offered by the organization will influence
turnover and therefore the need for future recruiting.
4. Organizations that are not growing or those that are actually declining will find little need
to recruit. On the other hand, organizations that are growing rapidly will find recruitment
a major human resource activity.

SELECTION

Once you have a pool of completed application forms, the next step is to select the best person
for the job. In most firms this means whittling down the applicant pool by using certain
screening tools including tests, assessment centers, background and reference checks. The
prospective supervisor can then interview a handful of viable candidates and decide who will be
hired.
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Defining Selection

Selection is the next stage after recruitment .it can be defined as assessing the candidates by
various means and making a choice followed by an offer of employment.

Why Selection is Important

Employee selection is important for three reasons:

1. Your performance always depends in part on your subordinates. Employees who haven
’t the right skills or who are abrasive or obstructionist wont perform effectively and you
performance in turn will suffer. The time to screen out undesirables is before they are in
the door not after.
2.  second effective screening is important because its costly to recruit and hire employees
for example one expert estimates that the total cost of hiring a manager who earns $
60,000 a year is about $ 47,000 once search fees, interviewing time, reference checking
and travel and moving expenses are taken into consideration. The cost of hiring non
executive employees, although not as high proportionally is still high enough to warrant
effective screening.
3. Legal implications and legal urgent hiring Good selection is also important because of the
legal implications of ineffective or incompetent selection. For one equal employment
legislation requires you to systematically evaluate the effectiveness of your selection
procedures to ensure that you are not unfairly discriminating against minorities, women ,
the elderly or handicapped. Second courts are increasingly finding employers liable for
damages when employees with criminal records or other problems take advantage of
access to customer homes or other similar opportunities to commit crimes. Hiring
workers with such backgrounds without proper safeguards is called negligent hiring.

As mentioned earlier selection involves assessing the candidates by various means

followed by an offer of employment. Important tools :

1. The Application Form

Once you have a pool of applicants the selection process can begin and for most employers the
application form is the first step in this process. The application form is the form that provides
information on education, prior work records and skills. Whatever method of recruitment is used
the candidate should be asked to fill in an application form:

ii) firstly to ensure that no important details are omitted.

iii) Secondly to provide information about the candidate in a logical and uniform order.

The layout of application form varies but most of them contain the following headings.

49
 1.  Job applied for
2. Name, address, telephone no.
3.  Date and place of birth
4.  Education
5.  Training and qualifications
6.  Medical History e.g. any serious illness, disabled
7.  Employment history
8.  Any other information the candidate wishes to provide
9. Signature under the words ‘This information is correct to the best of my knowledge ’
10.  Date

The application form is not only the basis of selection but it is the fundamental document in an
employees personnel records and has legal importance in the contract of employment.

Application forms are also useful for

1. Projecting a favorable image of the recruiting organizations

2. Obtaining the names and addresses of people to contact when future vacancies arise.
3. Researching the effectiveness of various recruitment advertising media
4.  Monitoring the effectiveness of equal opportunities policies.

The initial screening in most organizations begins with an application form. Most managers use
these to obtain background data. However, you can use applications form data to make
predictions about the applicant ’s future performance for example applications forms have been
used to predict job tenure, job success and employee theft.

Selection Method

The next step is to compare the application form with the personnel specification, looking for
attributes which show the candidates to be apparently suitable for the job and shortcomings
which might rule out the candidate from consideration or necessitate special training if he/she
were engaged.

From this comparison the manager can make a list of candidates for interview and those to be
rejected. The latter should be written to at once regretting the lack of success.

50
When because of high employment a large number of applications is received the task of
compiling a list of candidates to be interviewed becomes very difficult and time consuming,
various suggestions have been made for dealing with this problem.

When managerial, supervisory or specialist vacancies are being dealt with an enlarged
application form can be used asking for precise details of past employment candidates are then
rejected or not following a ruthless comparison of their experience with the demands of the post
as shown by job analysis. A few companies ask candidates to complete a biographical
questionnaire which has been carefully designed in respect of the job to be filled through the
process compiling and validating the questionnaire is in itself a lengthy and expensive
undertaking. The majority of vacancies however, are not suitable for such additional procedures,
which assume that candidates have above average powers of self expression and are willing to
complete complicated forms.

Perhaps the usual method in such cases is first to reject some candidates on the applications form
and then give quick interviews to the remainder (often a very large number) concentrating on
relevant experience. This will produce a shortlist who will go through a more searching selection
procedure.

After the shortlist has been drawn up the manager will decide what type of interview should be
given – individual, successive or panel and what tests should be used. There are many types of
personnel tests in use today including

  Intelligence tests
 Tests of physical skills
 Tests of achievement
  Aptitude tests
 Interest inventories
  Personality tests.

A test is basically a sample of a person ’s behavior but some tests are more clearly
representative of the behavior being sampled than others.

A good test should meet certain criterion.

1. Validity

test validity answers the question “what does this test measure?” there are aspects of
validity to consider.
51
a) criterion validity – means demonstrating that those who do well on the test do well on the
job.
b) Content validity – is demonstrated by showing that the tests constitutes a fair sample of the
content of the job.

2. Reliability

 as used by psychologists the term reliability always means consistency. One way to measure
reliability is to administer the same test to the same people at two different points in time.

3. Some basic testing guidelines include

a) Use tests as supplements to
b) Validate the tests for appropriate jobs
c) Always all current hiring and production standards
d) Beware of certain tests
e) Use a certified psychologist
f) Maintain good test conditions

Offer of the job

assuming a suitable candidate has emerged from the selection process he/she must now receive
an offer. The initial offer needs special care as regards the following :

1. The wage/salary offered must not only be appropriate to the job and attractive to
2. candidates but consistent with earnings of present employees.
3. Job must be named and special conditions set.
4. Any proviso must be clearly stated ‘subject to satisfactory references and medical
exams.

Summary
We have defined recruitment as the first part of filing a vacancy and generally building a
qualified pool of candidates whereas selection is the next stage and usually involves assessing
the candidates by various means and making a choice followed by an offer of employment We
also discussed external sources of candidates such as advertising, colleges, agencies,
headhunting, the internet and the internal sources such as job posting and referrals. We also
reviewed the pro and cons of using the various methods

 Hidden from students:QuizREVIEW QUESTIONS Quiz

Not available unless: You get a particular score (Min : NA AND max : 100) in REVIEW
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 

LESSON 7: TRAINING AND DEVELOPING HUMAN POTENTIAL

Objectives

By the end of this lesson students should be able to:

1. Define the concepts of training and development

2. Explain the major purposes of training in an organization
3. Describe the training process
4. Identify the major types of training methods and techniques
5. Identify the major types of development methods and techniques

Introduction

During the Year 2000s employee training will become increasingly important because of the
pressures to reduce costs and increase productivity. Companies everywhere are learning that they
cant compete in the world markets unless they boost productivity and invest in a higher-trained
and skilled workforce. Employee training is a key feature in improving levels of organizational
productivity. Therefore it is important the organization enable employees to upgrade their skills
and knowledge to meet these changing conditions.

Today’s managers face greater challenges than ever to maintain their position among the top
economic powers. Businesses everywhere are realizing that their place at the top is not
guaranteed and that they must find solutions for the declining productivity, competitiveness,
motivation and creativity of the workforce.

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There is a growing body of evidence that suggests workplace training offers a significant return
on investment. A study reported that firms who spend an average of $900 per employee
increased net sales $386171 on average per employee from one year to the next. Firms who spent
$275 per employee increased net sales $245,001.

This represents a difference of net sales per employee of $141,170.

One person said Traditional Management may be a lot easier but it is much less rewarding.
Empowering people is a lot tougher, but it is a lot of fun. You enjoy it more. People want to be
challenged. The workforce is completely changed; its imperative that companies make the
change with them if they don’t want to lose their best and brightest people. Some companies
today operate with a positive employee philosophy (PEP) that stresses services, commitment,
teamwork, ownership and ethical behavior. Rohr Human Resource Director Michael Murray
said, If you want to be a world-class manufacturer the greatest resource is the force working for
you.

In the future, the only winning companies will be those that respond quickly to changing
conditions, increasing workforce diversity and the critical issue of training related problems.

At one company, turnover was reduced by better screening, pre-employment requirements, a

good benefits program and a good training and communication program. Preparing employees to
function in a high performing system is an important HR activity. The modern HR manager must
not only be flexible and adaptive in a changing environment, but must also be able to develop a
systems approach to training. Rapidly changing technology necessitates employees who have the
skills, abilities and knowledge to keep up with new, complex production processes and
techniques.

Training is a process that begins with the orientation of the new employee and continues
throughout an employee’s career. Therefore it is important that the HR manager develop training
programs to improve employee skills and performance in a changing labor force.

WHAT ARE TRAINING AND DEVELOPMENT

Introduction

What makes one organization a winner when another fails to make use of the same opportunities.
Too many people lack the skills needed to flourish in the laser- fast, high performance, totally
empowered, fully global world of the 2000s. Companies need to be urged to treat their workers
as assets to be developed rather than as costs to be cut. Smart businesses realize that they, not the
government must take responsibility for training workers.

54
Nearly four in ten members of the National Association of Manufacturers in America say that
deficiencies in math, reading and technical skills are causing serious problems in upgrading
factories and increasing productivity. Companies cannot wait for the schools to solve
Americanâ’s education crisis.

Training is critical because it provides the skills needed both now and in the future. The
underlying assumption is: if an individual employee becomes more productive and more
involved, the total organization will also be improved. An overlooked benefit of training is when
it is a continuing process rather than occasional. It has been found that when companies train
their employees continually not only is there a high level of performance but it, also helps to
eliminate a negative work place.

Training

Although training and development are similar and both are critical to success there are some
important differences. Training may be defined as an attempt to improve performance by the
attainment of specific skills such as auding, HR , Account, running a computer and so forth, to
do the current job.

The goal of training is to ensure that a number of job skills will be performed at prescribed
quality levels by trained employees. In essence training is investing in human resources. It tends
to broaden the focus of the employee being trained.

Some of the best training in America takes place at Motorola. Its factory workers study the
fundamentals of computer-aided design, robotics, and customized manufacturing, not just by
reading manuals or attending lectures but by inventing and building their own plastic knick-
knacks as well. Motorola calculates that every dollar it spends on training, it receives $30 in
productivity gains within 3 years. The company has cut costs by $3.3 billion – not by the
normal expedient of firing workers, but by training them to simplify processes and reduce waste.
Sales per employee have doubled in the past 5 years and profits have increased 47%.

Other Definitions of Training

Training gives new or present employees the skills they need to perform their jobs. Training
might thus means showing a machinist how to operate his new machine, a new sales person how
to sell her firm ’s product or a new supervisor how to interview and appraise employees.

Training is a learning experience in that it seeks a relatively permanent change in an individual

that will improve his or her ability to perform on the job. We typically say that  raining can
involve the changing of skills, knowledge, attitudes or social behavior. It may mean changing
what employees know, how they work, their attitudes toward their work, or their interactions
with their coworkers or their supervisors.
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Whereas training focuses on skills needed to perform employee’s current jobs, employee and
management development is training of a long-term nature. Its aim is to develop current or future
employees for future jobs with the organization or to solve an organizational problem
concerning, for instance, poor inter-departmental communication.

The techniques used in both training and development are often the same, however, and the
distinction between the two is always some what arbitrary. Let us now try to define development
more closely:

Development

Development however, is more general than training, and refers to learning opportunities
designed to help employees grow. This provides employees with less detailed information but
provides broader learning which may be utilized in a variety of settings and for future jobs.

- learning computer programming so one could write programs.

- understanding human behavior as it relates to motivation
- understanding TQM so it may be applied to quality control and so on. The goal of development
is to broaden the employee’s comprehension of generalized situations that they may overlap into
specific events.

Management development is more future oriented, and more concerned with education than is
employee training or assisting a person become a better performer .By education we mean that
management development activities attempt to instill sound reasoning processes- to enhance one
’s ability to understand and interpret knowledge rather than imparting a body of serial facts or
teaching a specific set of motor skills. Development, therefore focuses more on the employee ’s
personal growth.

In essence development is macro, not micro. It results in comprehension of processes and

through this understanding, results in better job performance.

An example of such a program is six stigma which is used by general electric, Johnson
&Johnson & Motorola to develop new management talent. The challenge is to master the six
stigma discipline that leads to black belts -so what is a business black belt? Candidates in
training need to be grounded in math, statistics, data analysis, finance and computer skills. Upon
completion of the intensive training which takes months you become a green belt – capable of
reducing certain quality and you graduate to a defects in black belt.

Combination Programs

Training programs that combine both training and development is becoming more of a factor in
training programs as the business world begins to experience the serious deterioration of the
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education system. As global competition increases, training programs for management are
becoming more educational in scope, with instruction in such fields as ethnic and cultural
development in the world market place.

The general objectives of training are discussed below:

 Objective # 1. To Enhance Knowledge of Employees:

 Organisations need to help their employees to keep up their knowledge in tune with the
contemporary trends. This is especially so in these days of explosive improvements and
innovations in science and technology. Organisations should support their personnel in
the battle against obsolescence. Personnel are to be exposed to refresher courses and
developmental programs with a view to improve their utility to the organisation.
 Objective # 2. To Improve Job Related Skills:
 Some employees are not able to perform their jobs well. They possess inadequate skills
and knowledge of their assignments with the result that they produce poor quality and
volume of output, waste resources, damage equipment and tools, respond insufficiently to
the supervisor’s instructions and so on. They need a training course for the purpose of
removing their deficiencies and fitting them to their jobs.
 Objective # 3. To Develop Proper Job-Related Attitudes:
 The employees have to be trained to develop positive and helpful attitudes towards their
jobs, superiors, colleagues and juniors, the goals, policies and procedures of the
organisation and to the environment of the work place.
 Employees sometimes tend to be ignorant, indifferent and even hostile towards their jobs
in their inter-personnel relations and to the work culture. Attitude development and
socialisation of the personnel is essential for generating teamwork, ensuring discipline
and maintaining consistent behaviour.
 Objective # 4. To Prepare for Higher Responsibilities:
 ADVERTISEMENTS:
 The personnel need to have opportunities for advancement in their careers. Concurrently,
they should also be striving for assuming higher responsibilities and performing more
complex tasks with competence. For this purpose, an organisation may design a system
whereby opportunities are made available to personnel for their career advancement and
simultaneously preparing them through training for higher positions.
 Objective # 5. To Facilitate Organisational Changes:
 Organisations need to be dynamic to cope with, adjust and adapt to the changes in
technology and other environmental forces. The personnel have to be conditioned to learn
new skills and capabilities to enable them to be receptive to required changes and to
assimilate them.

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 For this purpose, they are to be properly trained. Training of personnel is one of the
approaches for the organisation to win over their resistance to change which is caused by
fear, anxiety and unfamiliarity.


 Objectives of Training
 The overall objective of the training programme is designed to solve the problem. For
example, Wyeth, pharmaceutical company, focuses its training on separate sets of
companies for sales employees, and for managers. Training is the application of the
knowledge. It makes people aware of the rules and procedures for guiding their
behaviour.
 It attempts the improvement of their performance in the present job or prepares them for
a future job. Training objectives are laid down keeping in view the company’s goals and
objectives. According to Edwin D. Flippo, “The purpose of training is to achieve a
change in the behaviour of those trained and to enable them to do their jobs better”.
 For achieving this objective, a training programme should try to bring positive
change in:
 1. To impart to new entrants the basic knowledge, which helps a trainee in knowing the
policies, facts, procedures and rules related to his job and enable them to perform their
jobs well.
 2. Skills, which help a trainee in increasing his technical and manual efficiency necessary
in doing in his job and to teach the employees new techniques and ways of performing
the job or operations. It may suggest that skills need to be “fine-tuned”.
 3. Attitude, which moulds a trainee’s behaviour towards his supervisors and co-workers
and creates a sense of responsibility in the trainee.
 ADVERTISEMENTS:
 4. To equip the employee to meet the changing requirements of the job and the
organization.
 5. To prepare employees for higher level tasks and build-up a second line of competent
managers.
 6. To broaden the minds of senior managers by providing them with opportunities for an
interchange of experiences with others with a view to correcting the narrowness of the
outlook that may arise from over specialisation.
 7. To impart customer education for the purpose of meeting the training needs of
corporations which deal mainly with the public. For example, Hindustan Steel Ltd.,
Gujarat State Road Transport Corporation, Heavy Electrical, Gujarat State Fertilizer

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 Corporation, Western Railway, All India State Road Transport Corporation, and B.E.S. &
T. Mumbai.
 8. To raise efficiency and productivity of employees and the organization as a whole.
 9. To create a pool of well trained, capable and loyal employees at all levels and thereby
to make arrangement to meet the future needs of an organization.
 10. To provide opportunities of growth and self-development to employees and thereby
to motivate them for promotion and other monetary benefits. In addition, to give safety
and security to the life and health of employees.
 11. To avoid accidents and wastages of all kinds. In addition, to develop balanced,
healthy and safety attitudes among the employees.
 12. To meet the challenges posed by new developments in science and technology.
 13. To improve the quality of production and thereby to create market demand and
reputation in the business world.
 14. To develop cordial labour-management relations and thereby to improve the
organizational environment.
 15. To develop positive attitude and behaviour pattern required by an employee to
perform a job efficiently. In other words, to improve the culture of the organization.
 16. To prevent manpower obsolescence in an organization.
 17. To develop certain personal qualities among employees which can serve as personal
assets on long-term basis.
 18. It improves administrative capability for development involves the ability to
mobilize, allocate and combine actions that are technically needed to achieve
organizational objectives.


Problems In Training

The size of the training problem becomes evident when one considers that in U.S.A. for example
some 95% of 21-25 year olds in the country only read at fourth grade level. If we are to solve the
training problem it will require upgrading the skills of 50 million Americans by a factor of 40%
in the twenty-first century. Even with a 100% success rate it would take 5 years to succeed. Time
is rapidly running out.
What has caused this problem?
Many, members of the media, the public and even some school administrators blame the
educational system for bad habits. This would include use of calculators instead of learning
mathematical tables and using computers for spell checks rather than learning the basic spelling
59
for themselves. Although the above organizations have merit, we should not overlook the
benefits that calculators and computers have brought us. Without them we would not be enjoying
the wide spread of prosperity of the twenty-first century.

So what are the benefits?

Improved employee performance – the employee who receives the necessary training is more
able to perform in their job. The training will give the employee a greater understanding of their
responsibilities within their role, and in turn build their confidence. This confidence will enhance
their overall performance and this can only benefit the company. Employees who are competent
and on top of changing industry standards help your company hold a position as a leader and
strong competitor within the industry.

Improved employee satisfaction and morale – the investment in training that a company
makes shows employees that they are valued. The training creates a supportive workplace.
Employees may gain access to training they wouldn’t have otherwise known about or sought out
themselves. Employees who feel appreciated and challenged through training opportunities may
feel more satisfaction toward their jobs.

Addressing weaknesses – Most employees will have some weaknesses in their workplace skills.
A training program allows you to strengthen those skills that each employee needs to improve. A
development program brings all employees to a higher level so they all have similar skills and
knowledge. This helps reduce any weak links within the company who rely heavily on others to
complete basic work tasks. Providing the necessary training creates an overall knowledgeable
staff with employees who can take over for one another as needed, work on teams or work
independently without constant help and supervision from others.

Consistency – A robust training and development program ensures that employees have a
consistent experience and background knowledge. The consistency is particularly relevant for the
company’s basic policies and procedures. All employees need to be aware of the expectations
and procedures within the company. Increased efficiencies in processes results in financial gain
for the company.

Increased productivity and adherence to quality standards – Productivity usually increases

when a company implements training courses. Increased efficiency in processes will ensure
project success which in turn will improve the company turnover and potential market share.

Increased innovation in new strategies and products – Ongoing training and upskilling of the
workforce can encourage creativity. New ideas can be formed as a direct result of training and
development.

Reduced employee turnover – staff are more likely to feel valued if they are invested in and
therefore, less likely to change employers. Training and development is seen as an additional
company benefit. Recruitment costs therefore go down due to staff retention.

Enhances company reputation and profile – Having a strong and successful training strategy
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helps to develop your employer brand and make your company a prime consideration for
graduates and mid-career changes. Training also makes a company more attractive to potential
new recruits who seek to improve their skills and the opportunities associated with those new
skills.
Training can be of any kind relevant to the work or responsibilities of the individual, and can be
delivered by any appropriate method.

For example, it could include:

 On-the-job learning
 Mentoring schemes

 In-house training
 Individual study

The Training Process

The present expenditure by business firms in the United States for training exceeds $100 billion.
Unfortunately some of this money is wasted on unnecessary or obsolete training programs. To
ensure that training dollars are invested wisely requires the same logic used in all managements
decisions.

The Manager Must:

1. Identify training needs and establish specific objectives and evaluation criteria.
2. Design the appropriate training methods and conduct the training.
3. Evaluate the results of the training

Step One: Identifying Training Needs

The initial step in a training program is to identify training needs, often termed as needs
assessment. The needs assessment refers to a systematic, objective identification of training
needs. Training needs can usually be determined by consulting with appropriate managerial
personnel regarding the results of assessment centers, areas of need revealed through employee
performance appraisal, and determining managers, concerns for specific training needs to
improve bottom-line performance. If such needs can be pin-pointed by hard data, survey
information and not by vague concerns needs, training improvements will result in increased
employee efficiency.

Step Two: Developing training objectives and criteria

The second step in a training program is developing training objectives and criteria. The
institutional objectives and criteria describe the performance in terms of training. One example
of an objective would be the attainment of a specific skill or performing a work task within a
certain time frame. An example of a criteria would be a specified score on a test instrument or
validation of performing a specific operation flawlessly a number of times.
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There are 2 advantages of developing objectives:
(1) The objectives provide criteria for evaluating the training program.
(2) The objectives provide trainers with the specific topics and content to focus on.

This ensures that training programs are focusing on important topics and goals that have
meaning to trainees. Achieving the objectives and criteria can be accomplished through the
selection of an appropriate training approach. The basic techniques include
i) Coaching
ii) Internship
iii) On-the-job training
iv) Apprenticeship
v) Job rotation
vi) Job Instruction Method
vii) Mentoring
viii) Case method
ix) Continuing education
x) College and correspondence courses
xi) Lectures

xii) Simulation
xiii) Programmed Instruction
xiv) Vestibule training

These training methods can be used to achieve either one or a combination of learning
objectives:

 Cognitive
 Non cognitive
 Psychomotor.

Cognitive learning relates to job specifics. It is concerned with facts and method sequences.
Non cognitive is concerned with behaviors creating and responding to position requirements.
Psychomotor involves performing tasks requiring the use of the hands, feet and body.

These 3 learning types can be accomplished thro ’ the following training methods:

1. In-House coaching

Coaching requires a person who has the necessary knowledge to instruct other individuals on a
one- to –one or small group basis. The coach most often is a supervisor, but may be a co-

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worker. Coaching is often associated with team sports such as baseball and football, where
individual and team skills are developed through practice and critique.

Although knowledge of the table is important, an effective coach must also possess the ability to
communicate the information to the individual in an efficient manner.

The coach and the one being coached must develop a mutual trusting relationship if this method
is to be successful.

2. Coaching Consultants

A significant number of companies are recognizing the twenty-first century will witness the
departure of 40% to 50% of their executives.

This is particularly true of the larger, older companies. The continuing pace of early retirements,
restructuring, mergers and lean hieratical have greatly reduced the once deep pool of middle
mangers. This is the very same group that was traditionally developed to become the next
generation of executives.

The problem is very common in workplaces around the country and is creating the soaring
popularity of a management tool called executive coaching. These coaches are consultants who
assist companies to prepare for succession by identifying and training the future top executives.
They act as confidants to help and produce executives to enhance their performance on the job.

Some executive consultants guide just –appointed managers fulfill the expected role in their
new jobs. In our global world of work force the role of the executive consultant has found a
special niche. Approximately 70% of the top 1000 firms worldwide do some form of executive
consultant coaching. A large number of mergers and acquisitions fail to achieve projected
bottom-line because executives lack soft people skills to overcome cultural clashes. Companies
are finding that week long training programs fail to produce long-term results. However when
the executive consultant is added to the mix, employees are learning continually.

Although training programs are usually general in nature, the executive consultant is more
tailored to a manager ’s potential and skills.

3. Internships

Interns usually follow a formalized training program. An internship program usually consists of a
series of job assignments over specific time periods designed to prepare a person for grater job
responsibilities. To ensure interns make the necessary progress in their job assignments, a daily
log of their activities is kept and/or written reports are interviewed by appropriate supervisors.
These jobs are usually channeled through the internship coordinator who oversees the progress
and functions as the administrator of the internship program.
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ON THE JOB TRAINING

On the job training is probably the most widely used method of training. One survey suggests
that 90% of all industrial training is conducted at the work site. In on-the-job training, the
employee is placed in the work station and the supervisor instructs the employee in how the job
is done directly at the work station. On-the-job training has several major advantages:
a) It is cost efficient
b) Workers actually produce while they learn
c) It builds motivation and involves a feedback situation
d) Finally, it minimizes problems if transfer of learning. When employees learn in the actual job
situation, the skills learned are the ones needed.

Although on-the-job training is usually low cost and practical it does have some disadvantages.
Because training is conducted at the normal production point, trainees may :
a) damage equipment
b) cause excessive waste materials
c) involve significantly higher accident rates.

Another major disadvantage of on-the-job training centers around the trainers. In the majority of
cases, the instructors are either supervisors or experienced line workers. In either case the trainer
may not have the training skills, interest or time necessary to properly train the new employee.
These conditions could produce improperly trained employees who, through no fault of their
own, are not performing the job at a high level of productivity and safety.

Apprenticeship Training

Among the oldest type of on-the-job training is apprenticeship training. This training is
commonly used by industries including metalworking, construction and auto repair where the
apprentices are trainees who spend a set period of time (usually 2 to 3 years) working with an
experience journey man. When used properly an apprenticeship program allows the worker to
earn wages while learning in both on and off-the-job situations.

The major disadvantages to apprenticeships training seems the set time period placed on all
enrolled in the program. People have different abilities and learning rates, but all must serve the
predetermined training period.

Apprenticeships are often used by unions. The apprentice agrees to work at less than trade wages
in exchange for training at a specific trade (i.e. plumber, electrician, etc). On-the-job training is
founded by fully qualified union personnel. Depending upon the trade, there are varying amounts
of classroom training. Although the apprenticeship may run from 2 to 5 years, the programs are
very comprehensive and may actually result in over training.

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In the changing technological environment of the 2000s, apprenticeship programs also face new
challenges. A trainer may spend several years learning a specific job skill, and then find upon
completion of the apprenticeship training that these job skills are no longer needed.

Job Rotation

Job rotation training involves moving trainees around among different jobs within the
organization. The system is often used for management-level training and self-managed work
team programs. Job rotation allows the employee to learn several job skills and a wide range of
operations within an organization.

Cross-trained personnel also provide greater flexibility for organizations when unexpected
transfers, absence, promotions or other replacements may become necessary Job rotation usually
takes place at the same pay rate. It often occurs when the Job is temporarily vacant due to a
vacation, illness or termination. The employee benefits from learning a variety of skills. The
company benefits from having a group of experienced candidates from whom to choose when
vacancies occur.

An example is the electronics company, Graphic Controls Corporation that established a

program to cross train workers for highly skilled positions in its twenty department
manufacturing area. The program ’s goals were to produce a versatile, qualified workforce,
willing to work in departments where there was a need.

The Job Instruction Method.

The Job Instruction Method is a formalized on-the-job training method where the employee
follows a series of written instructions to complete a procedure or to operate machinery. These
written instructions may be provided by the manufacturer of the equipment or by skilled
company employees. The JIM is effective for repetitive situations.

Programmed instruction (PI) provides the employees with short segments of information who
then respond to selected questions. If the answer is correct, the employee moves on to newer
more complicated segments of information. If the answer is wrong, the employee returns to the
previous short segment of information and tries again. Because this approach is self-correcting it
is fast and for some individuals is a more effective learning tool.

Computer-Assisted Instruction

One popular method of training is programmed instruction or computer-assisted instruction. This

involves a self-taught, self-paced learning system usually using computers which eliminates the
need for an instructor. Material is presented to trainees in written form, or by computer programs
through a series of self-paced steps. Each step consists of factual material to be mastered which
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is directly followed by a question. The trainees ’ responses are immediately verified after each
question. If the replies are correct the trainees proceed to the next item. If the responses are
incorrect the question is repeated. Computer-aided instruction offers the advantage of
individualized training. Trainees progress at their own pace, receive immediate feedback, and are
active, as opposed to passive learners. The potential of computer-aided instruction is limited only
by the amount of training needs and is becoming one of the most popular training methods.

Vestibule Training

The vestibule is one of the easiest methods used in business training. It originally referred to a
hallway where the employee learned to operate equipment correctly and then proceeded to the
shop floor for the real thing. It provides an environment where the employee can learn to
produce a high-quality volume of goods with a minimum loss to the employer in defective goods
and costly repair.

In vestibule training, the trainee learns the job in an off-site environment that stimulates the
actual workplace. Many companies have a small area within the plant set up for thistype of
training. Many larger organizations actually develop training schools. One example would be the
flight stimulators which duplicate an air plane cockpits used by Boeing to train airline pilots.

Mentoring

Mentoring establishes a formal relationship between junior and senior colleagues or between
persons with superior knowledge and a less experienced employee. .It is similar to a parent
–child relationship in that one provides guidance and tutorship in the ways of career success,
including sponsorship, coaching and protection of the colleague, exposure to contimportant acts,
and assignment of challenging work.

A mentor can be a valuable aid in the development of a junior person and may also be valuable
for improving the job involvement and satisfaction of the mentor. Several companies who offer
formal mentoring include Federal Express and Xerox.

The mentor begins by determining the employee ’s job and direction of the subsequent career
path. Together the mentor and the employee should develop career goals based on abilities and
company promotional opportunities. One approach is for both parties to maintain a diary of
events both as feedback and agreement of the progress attained. An evaluation format should be
set at the start of the mentoring program. This can be as simple as both parties discussing
progress or evaluations by other managers of the employee ,or more formal committee reviews at
various points in the program.

Of- the- Job Training

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Aside from initial orientation, on the job apprenticeship, and vestibule training programs most
other industry training occurs away from the actual job location. These programs may be taught
by staff, professional trainers and consultants or university faculty. Off the job training provides
a variety of training which would not otherwise be available to smaller companies .Programs can
be designed to meet training needs without being restricted by lack of organizational resources.
Typically off-the job creates an environment of learning Employers need not only know the
training needs of their employees but also need to understand their learning preferences. Once
the training program is completed the employee can continue self-directed learning.

Continuing Education

Continuing education courses may be offered by colleges or professional organizations .They are
usually of short duration and take place away from the organization .Topics range from self-
improvement and learning particular skills to maintaining a desired level of professionalism
( such as in accounting or nursing)

College and correspondence courses include educational, vocational and technical .As a result of
their broad range they provide a valuable supplement to a company ’s training program .From
the company ’s point of view, problems that occur include the course content may not satisfy the
organization ’s specific needs and employee progress is difficult to monitor.

Step Three: The Evaluation of training

Evaluation involves gathering information on whether trainees were satisfied with and
learned from the training .The evaluation considers several areas:

 Was the designated need or objective met and the specified criteria satisfied?
  Was the teaching method selected effective for the individual to learn?
 • finally will the evaluation assist the instructor to be more effective in the
 teaching role

The answer to the first area of concern – whether the designated needs were met and the
specific criteria satisfied involves both the trainee and the trainee ’s supervisor. Some type of
test will measure the trainee ’s accumulation of knowledge .However the key area is whether the
training received by the employee translates back on the job to increased effectiveness. This
knowledge is possessed by the supervisor who should be surveyed through  some form of written
appraisal after the trainee has returned to the job for an appropriate time period.

Whether the selected method of teaching was effective will be the result of summating the
trainee ’s test scores and the supervisor ’s rating of whether the employee is now more effective
on the job.

The final area of concern is the effectiveness of the instructor. The same evaluative data used in
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the previous appraisal can be used here also although the analysis will be somewhat different.
The student test scores and the supervisor ’ evaluation needs to be reviewed for possible areas of
course weakness and curriculum deficiencies. After determining these effects, the instructor can
determine the appropriate changes at the teaching level to increase effectiveness.

Management Development

Management development is any attempt to improve managerial performance by imparting

knowledge, changing attitudes or increasing skills .The ultimate aim is of course to enhance the
future performance of the organization itself.

Management development is important for several reasons. For one thing, promotion from within
is a major source of management talent. One survey of 84 employers reports that about 90% of
supervisors, 73% of middle-level managers, and 51% of executives were promoted from within;
virtually all these managers, in turn, required some development to prepare them for their new
jobs. Similarly, management development facilitates organizational continuity by preparing
employees and current m anager to smoothly assume higher-level positions. It also helps to
socialize management trainees by developing in them the right values and attitudes for working
in the firm. And, it can foster organizational responsiveness by developing the skills that
managers need to respond faster to change.

The Changing Nature of Management Development

Some management development programs are company wide and involve all or most new (or
potential) management recruits. Thus, new college graduates may join Enormous Corp. and
(with two dozen colleagues) become part of the company wide management development
program. Here they may be rotated through a pre programmed series of departmental
assignments and educational experiences; the aims are identifying their management potential,
and at providing the breadth of experience (in, say, production and finance) that will make the
new managers more valuable in their first “real” assignment as group product leaders. Then
superior candidates may be slotted onto a “fast track”, a development program that
prepares them more quickly to assume senior levelcommands.

On the other hand, the management development program may be aimed at filling a specific
position, such as CEO, perhaps with one of two potential candidates. When it is an executive
position to be filled, the process is usually called succession planning. Succession planning refers
to the process through which senior-level openings are planned for and eventually filled.

Such a succession program typically takes place in stages, first, an organization projection is
made, here you anticipate your department ’s management needs based on factors like planned
expansion or contraction. Next the HR department reviews its management skills inventory to
identify the management talent now employed. These inventories, you may recall, contain data
on things like educational and work experiences, career preferences, and performance appraisals.
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Next management replacement charts are drawn. These summarize potential candidates for each
of your management slots, as well as each person ’s development needs. For example the
development needs for a future division General Manager might include job rotation (to obtain
more experience in the firm ’s finance and production divisions), executive development
programs (to provide training in strategic planning), and assignment for two weeks to the
employer ’s in-house management development centre.

HR AND THE RESPONSIVE ORGANIZATION

For the past few years ’ management development ’s focus has been shifting from preparing
managers to fill higher-level slots to preparing them to meet the challenges of managing in a fast-
paced environment. Increasingly, therefore, the emphasis is on developing a manager ’s ability
to learn and make decisions under conditions of rapid change.

Two experts put it this way: “As decision makers take on increasing responsibility across their
careers, their learning needs move from the arena of task learning to behavioral learning to
conceptual or policy-level learning?” For example, today ’s corporate managers are under
enormous pressure “to find the strategic opportunities their competitors have yet to find”.
This means more emphasis on developing their conceptual ability to search for internal strategic
opportunities to improve quality, service, and prices.

Similarly, all managers-not just those to be posted overseas-have to be well schooled in global
economic, foreign markets, and cross-cultural negotiating. And to manage in flatter, more
empowered organizations the leader must increasingly become a teacher, coach and consultant
rather than a “boss”.

This is causing a corresponding change in the techniques that are emphasized in management
development programs. Historically on-the-job experience, including on the- job training,
coaching, and rotational assignments, has been far and away the most popular management
development techniques. The problem is that these techniques tend to emphasize showing
managers current procedures or (at best) getting them to think about how to “do what we ’re
doing today a little better.” Today there ’s a shift toward development techniques that teach
managers how to learn and how to develop the competencies they need to cope with change,
such as sizing up foreign markets andsearching for new strategic opportunities. Special in-
company executive development programs, action learning and lifelong learning, are examples
to be discussed later.

Managerial On-the-Job training

On-the-job training is one of the most popular development methods. Important techniques here
include job rotation, the coaching/understudy approach, junior boards, and action learning.

Job Rotation
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Job rotation means moving management trainees from department to department to broaden their
understanding of all parts of the business. The trainee often a recent college graduate-may spend
several months in each department; this helps not only broaden his or her experience , but also
discover the jobs he or she prefers. The person may just be an observer in each department but
more commonly gets fully involved in its operations. The trainee thus learns the departments
business by actually doing it whether it involves sales, production, finance, or more some other
function.

Job rotation has several other advantages. In addition to providing a well rounded training
experience for each person, it helps avoid stagnation through the constant introduction of new
points of view in each department. It also tests the trainee and helps identify the person ’s strong
and weak points. Periodic job changing can also improve interdepartmental cooperation;
managers become more understanding of each other ’s problems while rotation also widens the
trainee ’s acquaintances among management.

Rotation does have disadvantages. It encourages generalization and tends to be more appropriate
for developing general line managers than functional staff experts. You also have to be careful
not to forget inadvertently a trainee at some deserted outpost.

There are several things you can do to improve a rotation program ’s success. The program
should be tailored to the needs and capabilities of the individual trainee and not be a standard
sequence of steps that all the trainees take. The trainee ’s interests, aptitudes, and career
preferences should be considered, along with the employer ’s needs; the length of time the
trainee stays in a job should then be determined by how fast he or she is learning. Furthermore,
the managers to whom these people are assigned should themselves be specially trained to
provide feedback and to monitor performance in an interested and competent way.

The Goodyear Tire and Rubber Company ’s training program for college graduates is a good
example of job rotation. Each trainee ’s program is tailored to match his or her experience,
education, and vocational preference. Programs vary from 6 to 15 months, beginning with three
weeks in an orientation program to make the trainees thoroughly acquainted with Goodyear.
(Here they study the organization ’s structure, company objectives, and basic manufacturing
processes and participate in informal meetings with top company officials). After an additional
month of factory orientation, trainees, discuss their career interests with top-level managers and
select up to six assignments in special departments, each of which will last about one month. (for
example, a chemical engineering graduate might rotate through departments for fabric
development, chemical materials development research, central process engineering, process
development, and chemical production). Trainees then select specific job assignments as the
starting point of their careers.

GLOBAL HRM

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Global job rotation and management

As firms expand multinationally, job rotation is taking on a new meaning. At firms like shell and
British Petroleum (BP), rotation managers globally are a primary means through which the firms
maintain their flexibility and responsiveness even as they grow to an enormous size.

The rationale for extensive global job rotation is summarized as follows by a Shell senior
executive:“The word summarizing today ’s business outlook is uncertainty, and the response
mustbe flexibility. For a complex, international, multifunctional organization like the Shell
group, the prerequisite for flexibility is a highly skilled, international body of staff.

The advantage of global job rotation (rotating managers from, say, Sweden to New York, and
from New York to Japan) is that it builds a network of informal ties – an information network
–that ensures superior cross-border communication and mutual understanding as well as tight
interunit coordination and control.

Improved communication and understanding stem from the personal relationships that are forged
as managers work in the firm ’s various locations. These activities can also enhance
organizational control. When employees from a firm ’s global locations are rotated or brought
together at, say, Harvard Business School or Europe ’s INSEAD for a management training
program, the aim is more than just teaching basic skills. It is also to build a stronger
identification with the company ’s culture and values. By creating shared values and a consistent
view of the firm and its goals, management development activities like these can facilitate
communication and ensure that through a sense of shared values and purpose the firm ’s policies
are followed, even with a minimum reliance on more traditional forms of control.

Coaching/understudy approach

In the coaching/understudy approach, the trainee works directly with the person he or s he is to
replace; the latter is in turn responsible for the trainee ’s coaching. Normally, the understudy
relieves the executive of certain responsibilities, thereby giving the trainee a chance to learn the
job. This helps ensure that the employer will have trained managers to assume key positions
when such positions are vacated due to retirement, promotions, transfer, or terminations. It also
helps guarantee the long-run development of companybred top managers.

To be effective, the executive has to be a good coach and mentor. Furthermore, this person ’s
motivation to train the replacement will depend on the quality of relationship between them.
Some executives are also better at delegating responsibility, providing reinforcement, and
communicating than are others; this also will affect the results.

Junior Boards

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Unlike job rotation, which aims to familiarize the trainees with the problems of each department,
junior boards aim to give promising middle managers experience in analyzing overall company
problems. The idea of a junior board (also called multiple management) is to give trainees top-
level analysis and policymaking experience by having 10 to 12 trainees sit on a junior board of
directors. The members of such boards come from various departments. They make
recommendations regarding top-level issues like organizations structure, executive
compensation, and interdepartmental conflict to the official board of directors. This technique
provides middle-management trainees with on the job training and experience in dealing with
organization wide problems.

Action Learning

Action learning gives managers released time to work full time on projects, analyzing and
solving problems in departments other than their own. The trainees meet periodically with a
four-or five person project group, where their findings and progress are discussed and debated.

Action learning is similar to and grounded in other development methods. It is similar to the
junior boards previously discussed except that trainees generally work full time on their projects,
rather than analyzing a problem as a committee as they would on junior boards. It is also similar
to giving a management trainee a special assignment or project. However, with action learning
several trainees work together as a project group to compare notes and discuss each other ’s
projects. Action learning often requires cooperation among several employers. For example, an
employee from General Electric might be assigned to a government agency for a research
project, while the agency might assign one of its managers to G.E.

As an example, a CIGNA International Property and Casualty Corp. vice president spent four
intensive weeks in an action learning group. The group was assigned the problem of analysing
the strategies of one of the insurance company ’s business units over the previous three years.
They were told not to formulate a new business strategy but to recommend whether the existing
strategies required minor adjustments and whether they were being implemented incorrectly. The
vice president ’s group consisted of 11 upperand middle-management members from various
CIGNA divisions with no one coming from the same division. Each of the four weeks was
devoted to a different set of activities. In the first week the group received training from business
professors as well as a briefing from the division staff that had the business problem. In the
second week they split into four teams and traveled the country interviewing about 100 of the
division ’s employees, distributors, and customers on a one-to-one basis. In the third week the
group assimilated and analysed the data, and in the fourth week they formulated
recommendations and wrote a 40-pus-page paper. The group presented its recommendations to
the president and executions staff of the troubled division at the end of the fourth week and
fielded questions from the executives.

The idea of developing managers this way has pros and cons. It gives trainees real experience
with actual problems, and to that extent it can develop skills problem analysis and planning.
Furthermore, working with the others in the group, the trainees can and do find solutions to
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major problems. The main drawback is that in releasing trainees to work on outside projects, the
employer loses, in a sense, the full-time services of a competent manager.

Off-the-Job Management Development Techniques

There are many techniques you can use to develop managers off the job, perhaps in a conference
room at headquarters or off the premises entirely at a university or special seminar. These
techniques are addressed next.

proach is aimed at giving trainees realistic experience in identifying and analyzing complex pro

The Case Study method

The case study method presents a trainee with a written description of an organizational problem.
The person then analyses the case in private, diagnoses the problem, and presents his or her
findings and solutions in a discussion with other trainees. The case method apblems in an
environment in which their progress can be subtly guided by a trained discussions leader.

Through the class discussion of the case, trainees learn that there are usually many ways to
approach and solve complex organizational problems. Trainees also learn that their solutions are
often influenced by their own needs and values

The case method ideally has five main features. (1) The use of actual organizational problems;
(2) the maximum possible involvement of participants in stating their views, inquiring into others
’ views, confronting different views, and making decisions, resulting in (3) a minimal degree of
dependence on the faculty members; who, in turn, (4) hold the position that there are rarely any
right or wrong answers, and that cases are incomplete and so is reality; and (5) who still strive to
make the case method as engaging as possible through creation of appropriate levels of drama.
As you can see, the instructor plays a crucial role.

Problems to avoid unfortunately, the case approach often falls far short of this mark. In practical,
faculty often dominate classroom discussions by asking students questions that they then
themselves proceed to answer, through answering specific questions asked by students and
through presenting statements of the facts about the case. Faculty also us “mystery to achieve
mastery” by intentionally withholding information (for instance, regarding what the company
actually did and what its competitors were doing at the time when the case was written) with the
aim of maintaining control of the classroom discussion. In one study of the case method, Argyris
found that there were inconsistencies between the approach that the faculty espoused and what
they actually did. For example, (1) faculty said there are no right or wrong answers, yet some
faculty members did take positions and give answers (2) faculty said there are many different
points of view possible; yet they seemed to select viewpoints and organize them in a way to
suggest that they have a preferred route. Finally, few attempts were made by the faculty to relate
the trainee ’s behavior in the classroom to their behavior back home.

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There are several things you can do to make the case approach more effective. If possible, the
cases should be actual cases from the trainee ’s own firms. This will help ensure that trainees
understand the background of the case, as well as make it easier for trainees to transfer what they
learn to their own jobs and situations. Argyris also contends that instructors have to regard
against dominating the case analysis and make sure that they remain no more than a catalyst or
coach. Finally, they must carefully prepare the case discussion and let the students discuss the
case in small groups before class.

Management games

A development technique in which teams of managers compete with one another by making
computerized decisions regarding realistic but simulated companies. In a computerized
management game, trainees are divided into five-or six person companies, each of which has to
compete with the other in a simulated marketplace. Each company sets a goal (such as
“maximize sales”) and is told it can make several decisions. For example, the group may be
allowed to decide (1) how much to spend on advertising, (2) how much to produce, (3) how
much inventory to maintain, and (4) how much of which product to produce. Usually the game
itself compresses a two-or three year period into days, weeks, or months. As in the real world,
each company usually can ’t see what decisions the other firms have made, although these
decisions do affect their own sales. For example, it a competitor decides to increase its
advertising expenditures, that firm may end up increasing its sales at the expense of yours.

Management games can be good development tools. People learn best by getting involved in the
activity itself, and the games can be useful for gaining such involvement. Games are almost
always interesting and exciting for the trainees because of their realism and competitiveness.
They help trainees develop their problem-solving skills, as well as focus their attention on the
need for planning rather than on just putting out fires. The companies also usually elect their own
officers and develop their own divisions of work; the games can thus be useful for developing
leadership skills and for fostering cooperation and team  work.

Management games also have their drawbacks .One is that the game can be expensive to
develop and implement.

Games also usually force the decision makers to choose alternative from a closed list (for
instance, they might have choices of only three levels of production); in real life managers are
more often rewarded for creating new, innovative alternatives. On the whole, though, trainees
almost always react favorably to a well-run game, and it ’s a good technique for developing
problem-solving and leadership skills.

Cutside Seminars

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Many organizations offer special seminars and conferences aimed at providing skillbuilding
training for managers. The American Management Associations (AMA), for instance, provide
thousands of courses in areas such as the following:

 General management
 Human resources
 Sales and marketing
 International management
 Finance
 Information systems and technology
 Manufacturing and operations management
 Purchasing, transportation, and physical distribution
 Packaging
 Research and technology management
 General and administrative service
 Insurance and employees benefits.

The courses themselves range from “how to sharpen your business writing skills” to
“strategic planning” and assertiveness training for managers.” The outline of a typical
course is presented in Figure 8.2; it is “advanced management techniques for experienced
supervisors.” As you can see, it is a two-and-a- half-day advanced course for first-line
manufacturing supervisors with three to five years ’ experience who want to enhance their
management skills. Topics covered include review of management and organization concepts,
developing effective interpersonal skills, communication, motivation, and developing leadership
skills. Many of the AMA courses can also be presented on site at the employer ’s place of
business if ten or more employees are enrolled. Other organizations offering management Board,
and Xerox Educational Systems.

Many of these programs often continuing education units (CEUs) for course completion, Earning
CEU ’s provides a recognized measure of educational accomplishment, says the AMA, one that
is today used by more than, 1,000 colleges, CEU ’s generally can ’t be to obtain degree-
granting credit at most colleges or universities, but they do provide a record of the fact that the
trainee participated in and completed a special conference or seminar.

An Example of a typical middle-management training program.

Who should attend:

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An advanced course for first-line manufacturing supervisors with 3-5 years ’ experience who
want to enhance their management skills. Especially useful for supervisors who have completed
course. The management course for new manufacturing supervisors, or course productivity
improvement methods and techniques.
Key topics

 Review of management and organization concepts and how they relate to today ’s
employees: planning, organizing, coordinating, controlling, authority,
responsibility,accountability, reportability, dollar relationship to human resources
utilization and lost time.
 How to develop effective interpersonal skills, understanding behaviour and personality,
relating to people as individuals, self awareness and opportunities todevelop, how to
positively affect attitudes and working relationships, team development, how to develop a
warmer, more relaxed climate in dealing with people,how to come across firmly but
fairly.
 The communication workshop for supervisors: develop increased listening kills,writing
and speaking clearly, concisely, and with more organization, how to use communication
to reduce stress and fear, assertiveness in communication, how to sellyour ideas to
management.
  The motivation workshop for supervisors, analysing management style and its role
inmotivation, creating an environment where employees will work effectively,
behavioural foundation for self-motivation, relating program content to actual
problem situations.
 Developing your leadership skills, how you are perceived by others, habits that reduce
your leadership potential, applying course content to leadership development.

Special feature:

Examination of the supervisor ’s role- defining responsibilities, duties, authority and the
restriction of authority. Discussions on work psychology – how the supervisor can effectively
motivate, and the importance of communications. Discussion of various discipline techniques-
when and where to use them and their effects on performance and morale, presentation on
reviewing employee performance with emphasis on improving their production and morale.

CASE – Advertisement for Harvard Executive Training Program

Harvard Business School executive education offers dynamic and though-provoking study in a
wide spectrum for disciplines. These intensive programs are specifically designed to provide you
with the fresh perspectives and strategic focus needed to improve the performance of your
company.

76
In 1996, the Harvard business school offers more than twenty courses that run form two and one-
half days to eleven weeks. Two programs will be of particular interest to CEOs their direct
reports, and senior level executives.

Advanced management program is for senior level general managers with more than 15 years
experience. The program fosters a greater appreciation of complex business challenges and new
strategies to change and lead organizations in today ’s global market place.

Program of management development is designed for new general managers as well as senior-
level functional managers in succession for a general management role. course helps executives
improve their overall efficiency, develop a new framework for problem solving and expand their
range of responsibility.

Join your colleges in the learning experience that has had measurable impact on companies and
corporations around the world for more than fifty years. Then see the results for yourself.
Explore the opportunities with executive education at the Harvard Business School.

University Related Programs.

Colleges and universities provide three types of management development activities. First, many
schools provide continuing education programs in leadership, supervision, and the like. These
range from one- to four- day program to executive development programs lasting one to four
months. The advanced management program of the graduate school of business administration at
Harvard university is an example of one of these longer programs. As you can see in figure 8.3,
each class in this program consists of a group of experienced managers from all region of the
world. The program uses cases and lecturers to provide top-level management talent with the
latest management skills, as well as with practice in analysing complex organization problems.
Similar programs include the Executive program of the graduate school of business
administration at the university of California at Berkeley, the management Development seminar
at the university of Chicago, and the Executive in business administration program of the
Graduate of Business at Columbia University. Most of these programs take the executives away
from their jobs, putting them in university-run learning environments for their entire stay. The
Colombia University program, for instance, is offered at Arden House in the Ramapo Mountains
of New York.

Second, many colleagues and universities also offer individualized courses in areas like business,
management, and health care administration. Managers can take these as matriculated or
nonmatriculated students to fill gaps in their backgrounds.

Thus, a prospective division manager with a gap in experience with accounting controls might
sign up for a two-course sequence in managerial accounting.

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Finally, of course many schools also offer degree programs such as the MBA or Executive
MBA. The latter is a Master and above, who generally take their courses on weekends and
proceed through the program with the same group of colleagues.

The employer ’s contribution the employer usually plays a role in university related programs.
First, many employers offer tuition refunds as an incentive for employees to develop job-related
skills. Thus, engineers may be encouraged to enrol in technical courses aimed at keeping them
abreast of changes in their field. Supervisors may be encouraged to enroll in programs to develop
them for higher level management jobs.

Employers are also increasingly granting technical and professional employees extended
sabbaticals – periods of time off –the attending a college or university to pursue a higher
degree or to upgrade skills. For example, Lucent Corporation has a program that includes a
tuition refund and released time for up to one year of on-campus study. In addition, the company
has a doctoral support program that permits tuition refund and released time for studies one day a
week (and, for some, a full year ’s study on campus to meet residence requirements).

Some companies have experienced with offering selected employees in house degree programs
in cooperation with colleges and universities. Many also offer a variety of inhouse lectures and
seminars by university staff.

For example, Technicon, a high-tech medical instruments company, asked Pace University to
offer an executive education program for its key middle managers. The theme of the 14-month
program was successful management of high-tech business. the coursework covered topics
ranging from finance to executive communication.

Universities and cooperation ’s are also experimenting with video-linked classroom education.
For example, the school of business and public administration at California State University,
Sacramento, and a Hewlett-Packard facility in Roseville, California, are video-linked. A video-
link allows for classroom learning on campuses with simultaneous broadcasting to other
locations via telephone communication lines.

Example of a Role playing exercise

Typical role in a role playing exercise.

Walt Marshall – supervisor of repair crew
You are the head of a crew of telephone maintenance workers, each of whom drives a small
service truck to and from the various jobs. Every so often you get a new truck to exchange for an
old one, and you have the problem for deciding to which of your crew members you should give
the new truck. Often there are hard feelings, since each seems to feel entitled, to the new truck,
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so you have a tough time being fair. As a matter of fact, it usually turns out that whatever you
decide is considered wrong by most of the crew truck, a Chevrolet, has just been allocated to you
for assignment.

In order to handle this problem you have decided to put the decision up to the crew. You will tell
them about the new truck and will put the problem in terms of what would be the fairest way to
assign the truck. Do not take a position yourself, because you want to do what you think is most
fair.

Role Playing

The aim of role playing is to create a realistic situation and then have the trainees assume the
parts (or roles) of specific persons in that situation. One such role from a famous role-playing
exercise called the New Truck Dilemma is presented above when combined with the general
instructions for the role playing exercise, roles like these for all of the participants can trigger a
spirited discussion among the role players, particularly when they all throw themselves into the
roles. The idea of the exercise is to solve the problem at hand and thereby develop trainees ’
skills in areas like leadership and delegating.

Role playing can be an enjoyable and inexpensive way to develop many new skills. With the
New Truck Dilemma exercise, for instance, participants learn the importance of fairness in
bringing about acceptance of resource allocation decisions. The role players can also give up
their inhibitions and experiment with new ways of acting. For example, a supervisor could
experiment with both a considerate and autocratic leadership style, whereas in the real world the
person might not have this harmless way of experimenting. Role playing also trains a person to
be aware of and sensitive to the feelings of others.

Role playing has some drawbacks. An exercise can take an hour or more to complete, only to be
deemed a waste of time by participants if the instructor doesn ’t prepare a wrapup explanation of
what the participants were to learn. Some trainees also feel that role playing is childish, while
others who may have had a bad experience with the technique are reluctant to participate at all.
Knowing your audience and preparing a wrap-up are thus advisable.

Behavior Modeling

Behavior modeling involves (1) showing trainees the right (or “model”) way of doing
something, (2) letting each person practice the right way to do it, and then (3) improving
feedback regarding each trainee ’ performance. It has been used for example, to:

1. Train first-line supervisors to handle common supervisor-employee interactions better.

This includes giving recognition, disciplining, introducing changes, and improving poor
performance.

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 2.  Train middle manages to better handle interpersonal situations, for example,
performance problems and undesirable work habits.
3. Train employees and their supervisors to take and give criticism, ask and give help, and
establish mutual trust and respect.

The basic behavior modeling procedure can be outlined:

Modeling, first, trainees watch films or videotapes that show model persons behaving effectively
in a problem situation. In other words, trainees are shown the right way to behave in a simulated
but realistic situation. The film might thus show a supervisor effectively disciplining a
subordinate, if teaching how to discipline is the aim of the training program.

Role playing, next the trainees are given roles to play in a simulated situation, here they practice
and rehearse the effective behaviors demonstrated by the models.

Social reinforcement. The trainer provides reinforcement in the form of praise and constructive
feedback based on how the trainee performs in the role playing situation.

Transfer of training. Finally, trainees are encouraged to apply their new skills when they are back
on their jobs.

In-House Development Centers.

Some employers have in-house development centers. These centers usually combine classroom
learning (lectures and seminars, for instance) with other techniques like assessment centers, in-
basket exercises, and role playing to help develop employees and other managers.

For example the CB ’s management school is set in country club surroundings in Old Westbury,
New York. Its basic aim is to give young managers first hand experience at decision making.

To accomplish this, both the general management program (for upper-level managers) and the
professional management programs (for entry-level managers) stress solving concrete business
problems. The programs use various teaching methods but stress computerized case exercises. In
one exercise, for instance, each student acts as a regional sales manager and has to make
decisions regarding how to deal with a star saleswoman who wants to leave. As trainees make
decisions (like whether or not to boost the saleswoman ’s salary to entice her to stay), the
computer indicates the implications of the decision; thus if she is paid more, others may also
want that increase in pay. At the end of each day students get printouts evaluating their decisions
with respect to setting goals, organizing work, managing time, and supervising subordinates.

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Organizational Development

Organization development (OD) is a method that is aimed at changing the attitudes, values, and
beliefs of employees so that the employees themselves can identify and implement the technical
changes such as reorganizations, redesigned facilities, and the like that are required, usually with
the aid of an outside change agent or consultant.

Action research is the common denominator underlying most OD interventions. It includes (1)
gathering data about the organization and its operations and attitudes, with an eye toward solving
a particular problem (for example, conflict between the sales and production departments); (2)
feeding back these data to the parties (employees) involved; and then (3) having these parties
team-plan solutions to the problems. In OD, the participants always get involved in gathering
data about themselves and their organization, analyzing these data, and planning solutions based
on these analysis. OD efforts include survey feedback, sensitivity training, and team building.

Survey feedback survey feedback is a method that surveys employees ’ attitudes and provides
feedback to department managers so that problems can be solved by the managers and
employees. Attitude surveys such as the one in figure 8.5 can be a useful OD technique. The
results can be used to compare departments and to underscore dramatically the existence of some
problem like low morale, and serve as a basis for discussion among the employees for
developing alterantive solutions. Finally, results of attitude surveys can also be used to follow up
on any change to see whether it has been successful in changing the participants ’ attitudes.

Sensitivity training sensitivity training aims to increase participants ’ insights into their behavior
and the behavior of others by encouraging an open expression of feelings in the trainer-guided T-
group “laboratory.” (The “T” is for training).

The assumption is that newly sensitised employees will then find it easier to work together
amicably as a team. Sensitivity training seeks to accomplish its aim of increasing interpersonal
sensitivity by requiring frank, candid discussions in the T-Group, discussions of participants ’
personal feelings, attitudes, and behavior.

Participants are encouraged to inform each other truthfully of how their behavior is being
seen and to interpret the kind of feelings it produces. As a result, it is a controversial
method surrounded by heated debate and is used much less today than in the past.

Team building team building refers to a group of OD techniques aimed at improving the
effectiveness of teams at work. And, in fact, the characteristic OD stress on action learning-on
letting the trainees solve the problem – is perhaps most evident when the OD program is aimed
at improving a team ’s effectiveness.

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Data concerning the team ’s performance are collected and then fed back to the member of the
group. The participants examine, explain, and analyze the data and develop specific action plans
or solutions for solving the team ’s problems.

The typical team-building program begins with the consultant interviewing each of the group
members and the leader prior to the group meeting –asking them that their problems are, how
they think the group functions, and what obstacles are in the way of the group ’s performing
better. (or the consultant may interview the entire group at once, using open-ended questions
such as: “What things do you see getting in the way of this group ’s being a better one?”
Sometimes, an attitude survey is used to gather the basic background data for the meeting). The
consultant usually categorizes the interview data into themes and presents the themes to the
group at the beginning of the meeting. They might include, for example, “Not enough time to
get my job done,” or “I can ’t get any cooperation around here.” The themes are then
ranked by the group in terms of their importance. The most important ones from agenda for the
meeting. The group examines and discusses the issues, examines the underlying causes of the
problem, and begins work on solution to the problems.

During one of these sessions it is likely that certain non agenda items will emerge as a result of
the participants ’ interaction. In discussing the theme “ I can ’t get any cooperation around
here, “for instance, the group might uncover the fact that the manager is not providing enough
direction. The manager might be allowing vacuums to develop that are leading to conflict and a
breakdown of cooperation. These new items or problems, as well as the agenda items or themes,
are generally pursued under the guidance of the consultant. The steps are formulated to bring
abut the changes deemed desirable and a follow-up meeting is often scheduled. Here it is
determined whether the steps have been implemented successfully.

Notice how the typical team-building intervention relies on the participants themselves doing the
research: information about the group ’s problems is obtained from the group, members of the
group analyze and discuss the data in an atmosphere of cooperation, and finally, the participants
develop solutions or action steps for solving the problems that they themselves have identified.

Grid training is a formal approach to team building designed by Blake and Mouton. As
summarized in Table 8.1, grid training is based on a device called the managerial grid. This
represents difference leadership styles, identifying specifically whether the leader is more
concerned with people or with production.

The Grid program is aimed first at developing “9, 9” managers – managers who are
interested in getting results by being high on their concern both for production and for people;
they want to get results through committed, cooperative subordinates, say Blake and Mouton.
The Grid program assumes that possessing such a style makes it easier for you to work with
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subordinates, superiors, and peers in analysing group, inter group, and organizational problems
and developing action steps to solve these problems.

Using HR To Build A Responsive Learning Organization

The former head of strategic planning at Royal Dutch Shell has said, “In the future, the only
sustainable competitive advantage may be an organization ’s ability to learn faster than its
competitors.” His statement underscore the fact that in a fast-changing world, the last thing a
company needs is for new information about competitors ’ actions, customers ’ preferences, or
technological improvements to be ignored by the company ’s managers, or lost in a bureaucratic
sinkhole of non activity. For years, for instance, General Motors seemed oblivious to the
competitive and technological advances of its foreign competitors, it finally awoke only when its
board decided that too much market share had been lost. On the other hand, firms like Microsoft
and General Electric are traditionally quick on their feet, “adept at translating new knowledge
into new ways of behaving.”

HR ’s Role in Building Learning Organizations

Firms like GE have successfully made the leap into rebuilding themselves as learning
organizations. A learning organization “… is an organization skilled at creating, acquiring,
and transferring knowledge, ,and at modifying its behaviour to reflect new knowledge and
insights.” Learning organizations engage in five activities, which we ’ll discuss next.
Systematic problem solving, experimentation, learning from experience, learning from others
and transferring knowledge. HR can play a crucial role in each activity of building learning
organizations.

HR and systematic problem solving. The learning organization depends on the scientific method
rather than on guesswork for diagnosing problems. Employees and managers here don ’t make
decisions based on assumptions, instead they insist on having data and using simple statistical
tools to organize data and draw inferences.

Training and development is crucial for fostering such systematic problem solving skills. At
Xerox, for instance, employees receive skill training in four areas. They are trained in using
technique like interviewing and surveying to generate ideas and collect information, to reach
consensus by using simple statistical charts, and to plan the actions they will take to solve the
problem using special planning charts.

Hr and experimentation the learning organizations depends on experimentation, which means the
systematic searching for and testing of new knowledge. For example, Corning Glass

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continuously experiments with new formulations to increase yields and provide better grades of
glass. Steel maker Allegheny Ludlam continually experiments with new rolling methods and
improved technologies to raise productivity and reduce costs.

HR is crucial for developing such an experimentation orientation on the part of employees and
managers. For example, Chaparral Steel regularly sends its first line supervisors on development
trips around the globe to visit industry leaders and foster a better understanding of new work
practices and technologies. GE sends manufacturing managers to Japan to study factory
innovations. Both firms have training programs for building the skills required to perform and
evaluate experiments, such as how to use statistical methods and design experiments. It ’s also
HR ’s role to formulate incentive plans that ensure that employees who experiment with new
processes or produces aren ’t inadvertently punished fro trying a new approach.

HR and learning from others

A learning organization is also one that effectively learns from others. Sometimes, in other
words, “….. the most powerful insights come from looking outside one ’s immediate
environment to gain a new perspective”.

Training and development plays a role in obtaining such expertise. For example, ,employees
have to be trained to ‘cultivate the art of open, attentive listening” in order to gain the fullest
understanding of the other company ’s operations. Employees and managers also must be
trained to benchmark, the process through which the best industry practices are uncovered,
analysed, adopted, and implemented.

HR and transferring knowledge

Finally, learning organizations are adept at transferring knowledge, in other words, spreading
knowledge quickly and efficiently throughout the organization. Training and development plays
an important role in cultivating such expertise. For example, rotating assignments can be useful
for transferring knowledge. The CEO of Time Life shifted the president of the company ’s
music division (who had produced several years of rapid growth through innovative marketing)
to the presidency of the book division where profits were flat. As another example, in the late
1980s workers in one PPG glass plant were organized by the plant manager into small, self-
managing teams with responsibility for work assignments. Several years later in an attempt to
transfer the knowledge gained from this experience, the plant manager was promoted to director
of human resources for the entire glass group. He then developed a training program for teaching
first level supervisors the behaviors they needed to manage employees in a participative, self-
managing environment.

In summary, learning organizations are skilled at creating, acquiring, and transferring

knowledge, and at modifying their behavior to reflect new knowledge and insights. Learning
organizations are built on a foundation of systematic problem solving, experimentation, learning
from past experience, learning from others, and transferring knowledge. HR and particularly
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training and development play entire roles in developing employees ’ and managers ’ skills and
expertise in each of these areas.

Providing employees with lifelong learning

Employers can ’t build learning organizations just around managers. In todays downsized,
flattened, high-tech, and empowered organizations, employers must also depend on their first-
line employees – the team members building the Saturn cars, or the Microsoft programmers
– to recognize new opportunities, identify problems, and react quickly with analyses and
recommendations. As a result, the need has arisen for encouraging lifelong learning, in other
words, for providing extensive continuing training from basic remedial skills to advanced
decision making techniques throughout employees ’ careers.

The experience at one Canadian Honeywell manufacturing plant provide an example. This plant
called its lifelong learning program the Honeywell-Scarborough Learning for Life Initiative. It
was “… a concerted effort to upgrade skill and education levels so that employees can meet
workplace challenges with confidence”.

Honeywell ’s Lifelong Learning Initiative had several components. It began with adult basic
education. Here the company, in partnership with the employees ’ union, offered courses in
English as a second language, basic literacy, numeracy, and compute literacy.

Next the factory formed a partnership with a local community college. Through that partnership
Honeywell provides college-level course to all factory employees-hourly, professional and
managerial –giving them the opportunity to earn college diplomas and certificates. This
includes a 15 hour “skills for success” program designed to refresh adults in the study
habits required to succeed academically. All courses take place at the factory immediately after
work.

In addition, job-related training is provided for two hours every other week. These sessions focus
on skills specifically important to the job, “…. Such as the principles of just-in-time
inventory systems, team effectiveness, interpersonal communication skills, conflict resolution,
problem solving and dealing with a diverse work force.”

Executive Development: Key Factors For Success

The idea that there are several keys factors for an executive development program ’s success is
illustrated by the results of a survey of executive development practices in 12 leading
corporations. This study found a surprisingly high degree of consensus among the 12 firms
regarding the characteristics of effective and ineffective executive development processes. In
particular, five major success criteria were listed by over 75% of the survey participants.

Five key factors for success

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`These five key factors were as follows:
1. Extensive and visible involvement the chief executive (CEO) is critical. In all but one of
the companies, extensive and visible involvement by the CEO was described as “essential”
and the “single most important determinant” of success for the executive development
program. This extensive involvement helped guarantee that the company ’s executive
development process was consistent with the direction the CEO wanted the company to follow.
It also lent the process a credibility unachievable in any other way.

2. Corporations with a successful executive development process have a clearly articulated

and understood executive development policy and philosophy. For example, 10 of the 12
companies surveyed listed four common objectives of their executive development processes:
ensuring that qualified executives would be available to fill current and future assignments,
serving as a major vehicle to perpetuate the organization ’s heritage and shape its culture by
communicating its mission, beliefs, values, and management practices, preparing executives to
respond to the complex business issues of the changing environment by providing managers with
the experience, knowledge, and skills they need in future assignments, and developing a cadre of
individuals prepared to assume senior-level general management responsibilities.

3. Successful executive development policies and strategies are directly linked to the
corporation ’s business strategies, objectives challenges.
Nine of the 12 companies emphasized that their executive development policies and strategies.
For example, plans to expand overseas, diversify into new product lines, or consolidate
manufacturing operations have implications for management/executive development activities.
In the successful programs the development process was molded
around the company ’s plans.

4. Successful executive development processes include three main elements. An annual

succession planning process, planned on-the-job development assignments, and customized,
internal, executive education programs supplemented by the selected use of university programs.
First, in all 12 companies succession plans were in place and were actively managed for key
positions and individuals. Second, development needs were continually identified (based on
these plans), and plans were developed and implemented to address these development needs.
Third, a formal annual planning and review phase was in place to assess each candidate ’s
progress and to review the company ’s replacement plans.

With respect to on-the-job development, “all the study participants agreed that it was the
single effective developmental tool available to organizations.” The four types of on-thejob
experience used most often were, assignment of people to membership on task forces assembled
to address specific issues, job rotation experiences lasting from one to two years, overseas
assignments, and temporary assignments of relatively short duration.

With respect to executive education, all the companies offered a mix of external university-type
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programs and customized internal programs. Some of the companies expressed concern about
the prohibitive costs of the external programs, although virtually all sent selected employees to
them.

5. Executive development is the responsibility of line management rather than of the HR

function. In all but one of the companies in this survey, the role of HR department was seen as
crucial but advisory .HR serves as a resource for line management regarding the development
programs and activities to use and how to use them.

However, the actual responsibility for achieving the goals of the executive development program
– deciding who will fill future positions, or how to eliminate current managers ’ shortcomings,
for instance – is line management responsibility.

Executive development in Global companies.

Selecting and developing executives to run the employer ’s overseas operations present
management with a dilemma. One expert cites “an alarmingly high failure rate when
executives are relocated overseas.” This failure rate is usually caused by inappropriate
selection and poor preplacement development. Yet in an increasingly globalized economy,
employers must develop mangers for overseas assignments despite these difficulties.

A number of companies, including Dow, Colgate-Palmolive, and Ciba-Geigy, have developed

and implemented international executive relocation programs that are successful. In addition to
the general requirements for successful executive development programs previously listed,
preparing and training executives for overseas as assignments should also include the following
considerations.

1. Choose international assignment candidates whose educational backgrounds and experiences

are appropriate for overseas assignments. As in most other endeavors, the best predictor for
future performance is often a person ’s past performance. In this case the person who has
already accumulated a track record of successfully adapting to foreign cultures (perhaps through
overseas college studies and summer internships) will more likely succeed as an international
transferee.

2. Choose those whose personalities and family situations can withstand the cultural changes
they will encounter in their new environments. When many of these executives fail, it is not
because these individuals couldn ’t adapt but because their spouses or children were unhappy in
their new foreign setting. Thus, the person ’s family situation probably should have more
influence on the assignment than it would in a domestic assignment.

3. Brief candidates fully and clearly on all relocation policies. Transferees should be given a
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realistic preview of what the assignment will entail, including the company ’s policies regarding
matters such as moving expenses, salary differentials, and benefits such as paid schooling for the
employees ’ children.

4. Give executives and their families comprehensive training in their new company ’s culture
and language. At Dow Chemical, for instance, orientation begins with a briefing session, during
which the transfer policy is explained in detail to the relocating executive. He or she is also given
a briefing package compiled by the receiving area containing important information about local
matters, such as shopping and housing. In addition, an advisor, who is often the spouse of a
recently returned expatriate, will visit the transferee and his or her spouse to explain what sort of
emotional issues they are likely to face in the early stages of the move-such as feeling  remote
from relatives, for instance. The option of attending a two-week language and cultural
orientation program are also offered.

5. Provide all relocating executives with a mentor to monitor their overseas careers and help
them secure appropriate jobs with the company when they repatriate. At Dow, for instance, this
person is usually a high-level supervisor in the expatriate ’s functional area. The overseas
assignee keeps his or her mentor up to date on his or she is overseas. Specifically, all job changes
and compensation actions involving the expatriate must be reviewed with and supported by the
mentor. This helps to avoid the problem of having expatriates feel “lost” overseas,
particularly in terms of career progress.

6. Establish a repatriation program that helps returning executives and their families readjust to
their professional and personal lives in their home country. At Dow, for instance, ,the head of the
overseas assignee ’s department or division gives the transferee a letter stating that the foreign
subsidiary guarantees that he or she will be able to return to a job at least at the same level as the
one he or she is leaving. As much as a year in advance of the expatriate ’s scheduled return to
headquarters, his or her new job is arranged by the person ’s mentor.

Small business applications

The Managing Director of a smaller enterprise faces both unique advantage and disadvantages
when it comes to developing employees for higher-level executive roles. On the negative side,
this MD has neither resources nor time to develop full-blown executive succession programs or
to fund many outside programs like sending potential executives to the Harvard Business School.
Yet at the same time the president of a smaller firm has the advantage of working more closely
with and knowing more about each of his or her employees than does the CEO of a bigger, less
personal firm.

A relative lack of resources notwithstanding, the smaller firm ’s president has few needs more
important than that of developing senior managers. For most small firms with successful
products, it is not a lack of financing that holds them back but a lack of management talent. This
is so because all growing firms inevitably reach the point where the entrepreneur/owner can no
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longer solely make all the decisions. For the Dows and Mercks of the world, the question of
succession planning and executive development is mostly a question of selecting the best of the
lot and then developing them. There is usually an adequate supply of talent given these
companies enormous influx of new recruits. For the smaller company, the problem usually is not
of selecting the best of the lot. Instead its main sure that key positions are filled and that the MD
will have the foresight to know when to surrender one set of reins over a part of the company ’s
operations.

There are thus four main steps in the smaller company ’s executive development process

Step 1. Problem assessment

Particularly here the executive development process must begin with an assessment of the
company ’s current problems and the owner ’s plans for the company ’s future. Obviously, if
the owner/entrepreneur is satisfied with the current size of the firm and has no plans to retire in
the near future, no additional management talent may be required.

On the other hand, if plans call for expansion, or current problems seem to be growing out of
control, management development/succession planning might be the key. It often happens, for
instance, that as a small company evolves from a mon-and –pop operation to a larger firm, the
management system that adequately served that were previously profitable now incur overtime
costs and excessive waste, and the informal order-writing process can no longer keep up with the
volume of orders.

At this point the president must assess the problems in his or her firm. Begin with an analysis of
the company ’s financial statements. For example, what is the trend of key financial ratios, such
as the ratio of manufacturing costs to sales, or of sales overhead to sales? Are your profit margins
level, or heading up or down? Are fixed costs remaining about the same, or heading up as a
percentage of sales? Next analyze the organization function by function. In sales, is the backlog
or orders growing? In manufacturing are there inventory problems that required attention? In
accounting, are you getting the accounting reports that you need and are the monthly and end-of
year reports produced in a timely fashion? Does the company have a personal system in place
such that as many personnel matters as possible-recruitment, testing, selection, training , and so
forth – are routinized and carried out in an effective manner? The point is that the owner must
assess the problems in his or her firm with an eye toward determining whether and when new
management talent is required.

Step 2. Management audit and appraisal

One reason management selection and development are so important in small firms is that the
“problems” assessed in step 1 are often just symptoms of inadequate management talent in
smaller firms. It ’s simply not possible for the owner/entrepreneur to run a $5million company
the way he or she did when the company was one-tenth the size. Therefore, the lack of adequate

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management is a depressingly familiar cause for many of the problems in the small growing
firm.

Use the problems found in step 1 as a starting point conducting a management audit and
appraisal of the people now helping you manage your firm. One simpl and effective way do this
is by evaluating them on the traditional management functions of planning, organizing staffing,
leading, and controlling. For example, within their own areas of responsibility have they
instituted plans, policies, and procedures that enable their actitivites to be carried out efficiently?
Have they organized their activities in such a way that their subordinates have job descriptions
and understand what their responsibilities are? In terms of staffing, have they selected competent
employees, are their people adequately oriented and trained, and are the pay rates within their
group viewed as fair and equitable?

In terms of leadership, is the morale in their department satisfactory, and do their people seem to
enjoy what they are doing? Are each person ’s interpersonal relations with other members of
your team satisfactory? And in terms of control, has each person recommended and/or instituted
a set of reports that provides both of you with the information you need to assess adequately how
that department is doing?

Step 3. Analysis of development needs

Your next step is to determine whether any inadequacies uncovered in step 2 can be remedied via
some type of development program. At one extreme, the person may not have the potential to
grow beyond what he or she is now, and here development may serve no purpose. At the other
extreme, the problems uncovered may just reflect a lack of knowledge. For example, sending
your bookkeeper/accountant back to school for a course or two in management accounting could
alleviate the problem. Another question to answer here is whether you (as the
owner/entrepreneur) may be responsible for some of the problems yourself, and whether you
should direct yourself direct yourself to a management development program (or out of the firm
altogether).

Step 4 identify replacement needs

Your assessment may uncover a need to recruit and select new management talent. Here, as
explained in Chapter 3, you should determine ahead of time the intellectual, personality,
interpersonal and experience criteria to be used. You should map out an onthe- job development
program that gives the person the breadth of experience he or she needs to perform the job.

SUMMARY

1.  In the past decade, training has become increasingly popular as an HR technique for
improving employee and managerial performance in organizations. We defined training
as an attempt to improve performance by the attainment of specific skills such as
typing,welding, running a computer etc to do the current job.
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2. For training to be effective we have to adopt a systematic approach which includes a
careful needs assessment, program design, and evaluation of results
3. We also discussed both on-the job training methods such as apprenticeship training, job
rotation, job instruction method, computer-assisted instruction, vestibule training and
mentoring. We also discussed off-the –job training like continuing education courses
and outside seminars
4. Management development is aimed at preparing employeefor future jobs with the
organization, or at solving organization wide problems concerning, for instance,
inadequate interdepartmental communication.
5. On-the-job experience is by far the most popular form of management development.
However, the preferred techniques differ by organizational level, with in-house programs
being preferred for first-line supervisors and external conferences and seminars more
widely used for top executives.
6. Managerial on-the-job training methods include job rotation, coaching, junior boards, and
action learning. Basic off-the-job techniques include case studies, management games,
outside seminars, university related programs, role playing, behavior modelling, and in-
house development centers.
7. HR can contribute to building the learning organization through its impact on: systematic
problem solving, experimentation, learning from experience and from others, transferring
knowledge, and providing employees with lifelong learning.
8. Organizational development (OD) is an approach to instituting change in which
employees themselves play a major role in the change process by providing data, by
feedback on problems, and by team-planning solutions. We described several OD
methods including sensitivity training. Grid development, and survey feedback
9. Grid programs and other intergroup team-building efforts aim at developing better
problem solving and more cooperation at work through the action research process. Each
work group analyses work team problems and generates action plans for solving then.
Then this same approach is used by special intergroup teams so that company wide
problems are solved.
10. Successful development programs require CEO involvement, a clear development policy,
linkage to plans, succession planning and development and line responsibility.

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 

LESSON 8 : PERFORMANCE APPRAISALS

Objectives:

By the end of this lesson students should be able to:

• Explain why it is important to effectively appraise performance
• Describe the various performance appraisal methods
• Discuss the major problems inhibiting effective performance appraisals
• Conduct a more effective appraisal interview

Introduction

All managers are constantly forming judgments of their subordinates and are in that sense
continuously making appraisals. Whether formal or informal almost all companies have a
way of appraising their employees’ performance . Most of us have therefore had an
experience with performance appraisal. One of the most important activities for the
Human Resource Manager is maintaining and enhancing the workforce. After all the
efforts and costs of the recruiting and selection process it is important to ensure that
employees are using their fullest capabilities, thus improving the effectiveness of the
organization.

Therefore it is important that the organization develop procedures and policies which
comply with the process. The development of a standard performance appraisal process
will help companies to improve their bottom-line performance, uplift motivational efforts
and resolve most morale problems.

Definitions
Performance may be defined as the accomplishment of an employee or manager’s
assigned duties and the outcomes produced on a specific job function or activity during a
specified time period.

Performance appraisal, review or evaluation refers to a systematic description and review

of an individual’s job performance

Performance appraisal may also be defined as any procedure that involves:

1.  Setting work standards

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 2.  Assessing the employee’s actual performance relative to these standards
3. Providing feedback to the employee with the aim of motivating that person to
eliminate performance deficiencies or to continue to perform above par.

Appraisal may also be viewed as the judgment of an employee’s performance in a job

based on considerations other than productivity alone. It is sometimes called merit rating
more frequently when its sole object is to discriminate between employees in granting
increases in wages or salaries.

Performance Management refers to the total system of gathering information, the review
and feedback to the individual and storing information to improve organizational
effectiveness.

The primary goal of performance management appraisals is to improve organizational

performance

Why should You Appraise Performance

There are several reasons to appraise performance. First, appraisals provide information
upon which promotion and salary decisions can be made.

Second, they provide an opportunity for you and your subordinate to review the
subordinate’s work related behavior .This in turn helps you develop a plan for correcting
any deficiencies the appraisal might have unearthed, and reinforce the things that the
subordinate does right

Finally ,the appraisal should be central to your firm’s career-planning process because it
provides a good opportunity to review the person’s career plans in light of his or her
exhibited strengths and weaknesses.

There has been in recent years reaction against formal appraisals, largely because of their
tendency to decay into routine form-filling, managers sometimes copying what they
wrote the previous year.

It has been said that a manager should as a normal part of the managerial process,
continually assess the merits of his subordinates and consider what training they need to
improve their performance or meet new demands. The manager should take action e.g
initiate a transfer if his or her assessment indicates it is necessary and be ready to give a
written appraisal when it is required e.g if the subordinate has applied for a promotion
There is general agreement, however that an annual general meeting between the

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manager and subordinate to review the latter’s work during the year is useful because it
gives formal recognition of the subordinate’s efforts.

The Supervisor’s Role in Appraisal

The supervisor does the actual appraising .Therefore he or she must be familiar with
basic appraisal techniques, understand and avoid problems that can cripple an appraisal
and conduct the appraisal fairly.

The HR Department serves a policymaking and advisory role. In one survey ,for example
about 80% of the firms responding said that HR provides advice and assistance regarding
the appraisal tools but leaves final decisions on appraisal procedures on operating
division heads  In the rest of the firms the personnel office prepares detailed forms and
insists that all departments use them. HR is responsible for training supervisors to
improve their appraisal skills. Finally HR is also responsible for monitoring the appraisal
system’s use and particularly or ensuring that the format and criteria being measure
comply with EEO laws and don’t become outdated. In one survey half of the employers
were in the process of revising their appraisal programs while others were conducting
reviews to see ho well their programs were working.

Steps in Appraising Performance

A performance appraisal contains 3 steps:

4.  Define the job-make sure that you and your subordinate agree on his or her duties
and job standards
5. 2. Appraising performance- it means comparing your subordinate’s actual
performance to the standards that have been set; this usually involves some form
of rating form
6.  Performance appraisal usually requires one or more feedback situations- here the
subordinate’s performance and progress are discussed and plans are made for any
development that is required.

The appraisal interview

An appraisal usually culminates in an appraisal interview. This is an interview in which

the supervisor and his subordinate review the appraisal and make plans to remedy
deficiencies and reinforce strengths. In many companies today appraisal is one-way and
secret .it can therefore only fulfill the first three purposes of appraisal and cannot be used
to motivate the employee, by reviewing his or her job performance. A problem solving
approach is usually recommended, encouraging the subordinate to talk freely about his or
her successes and failures over that period. The self-criticism that may occur in this
process is much more likely to lead to action by the subordinate to remedy faults than
criticism by the manager .

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However some argue that companies relations between supervisors and subordinates are
not good enough to permit a problem solving interview to take place. The subordinate
will try to hide shortcomings rather than discuss them .Managers who have time patience
and social skills to conduct problem-solving interviews are also rare.Moreover one of the
functions of a manager is to assess subordinates and tell them if their work is satisfactory;
subordinates expect this and a manager who avoids this task will not be respected.

Guidelines for conducting an effective appraisal interview:

o   Begin the interview with an outline of its purpose, the assessment criteria and
state the  object of the exercise is to improve performance, not to bully or harass
the employee
o  Put the subordinate at ease, emphasizing the positive aspects of his work
o Offer an opinion on subordinate’s performance
o Diagnose the causes of problems and root out the histories of specific failures
o  Be direct and specific
o Don’t get personal
o Encourage the person to talk
o Don’t tiptoe around

The Appraisal Itself: Appraisal Methods

The appraisal itself is generally conducted with the aid of a predetermined and formal
method like the one or more of those described below.

1.Graphic Rating Scale Method

It is the simplest and most popular technique for appraising performance. It is a scale that
lists a number of traits ( such as quality and reliability ) and a range of performance
values (from satisfactory to outstanding ) for each trait. The supervisor rates each
subordinate by circling or checking the score that best describes his or her performance
for each trait. The assigned values for the trait are then totaled

2. Alteration Ranking Method

Ranking employees from best to worst on a trait or traits is another method for evaluating
employees. Since it is usually easier to distinguish between the worst and best employees
than to rank them an alteration ranking method is most popular. It involves ranking
employees from best to worst on a particular trait. List all subordinates and indicate the
employee who is highest on the characteristic being measured and also the one who is the

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lowest. Then choose the next highest and the next lowest, alternating between the highest
and the lowest until all the employees t be rated have been ranked.

3.Paired Comparisons

The paired comparison method makes the ranking method more precise .For every trait
(quantity of work ,quality of work and so on) every subordinate is paired with and
compared with every other subordinate. Suppose there are 5 employees to be rated. In the
paired comparison you make a chart of all possible pairs of employees for each trait.
Then for each trait indicate (with + or -) who is the better employee of the pair. Next the
number of times an employee is rated better is added up.

4.Forced Distribution Method

The forced distribution method is similar to grading on a curve .With this method
,predetermined percentages of rtes are placed in performance categories. For example
you may decide to distribute employees as follows :

o 15 % high performers
o 20% high-average performers
o 30% average performers
o 20% low average performers
o 15% low performers

As at school this means that not everyone can get an “A” and that one’s performance is
always relative to that of his or her peers. One practical way to do this is to write each
employee’s name on a separate index card. Then for each trait being appraised ( quality
of work ,creativity and so on),place the employee’s card in one of the appropriate
performance categories.

5. Critical Incident Method

With the critical incident method the supervisor keeps a log of desirable or undesirable
examples or incidents of each subordinate’s work-related behavior. Then every six
months or so the supervisor and subordinate meet and discuss the latter’s performance
using the specific incidents as examples.

The critical incident is often used to supplement a ranking technique. It is useful for
identifying specific examples of good and poor performance and planning how
deficiencies can be corrected. It is not useful for salary decisions.

6. Narrative forms

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Some employers use narrative forms to evaluate personnel.It may use for example a
Performance Improvement Pan to evaluate the progress and development of its
employees. A summary performance appraisal discussion then focuses on problem
solving.

7. Behaviorally Anchored Rating Scales (BARS)

A behaviorally anchored rating scale combines the benefits of narratives, critical

incidents and quantified ratings by anchoring a quantified scale with specific behavioral
examples of good or poor performance. Its proponents claim that it provides better more
equitable appraisals than do other tools we discussed.

Developing a BARS typically requires 5 steps:

o Generate critical incidents

o Develop performance dimensions
o Reallocate incidents
o Scale the incidents
o Develop final instrument

A BARS can be time consuming than developing other appraisal tools .However it has
the advantages of being more accurate, providing clearer standards, consistency and
feedback

Management by Objectives ( MBO ) Method

Stripped to its essentials, management by objectives (MBO) requires the manager to get
specific measurable goals with each employee and then periodically discuss his or her
progress towards theses goals. You could engage in a modest MBO program with
subordinates by jointly setting goals and periodically providing feedback. However the
term MBO almost always refers to a comprehensive, organization wide ,goal-setting and
appraisal program that consists of six main steps:

o Set the organization’s goals

o Set department goals
o Discuss department’s goals
o Define expected results
o Performance Reviews
o Provide feedback

Appraising Performance: Problems and Solutions

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Few of the things the manager does is fraught with more peril than appraising
subordinates’ performance .Employees in general tend to be overly optimistic about what
their ratings will be, and also know their raises, career progress, and peace of mind may
well hinge on how they are rated. This alone should make it somewhat difficult to rate
performance; even more problematical, however are the numerous structural problems
that can cast doubt on just how fair the whole process is.

Five main problems can undermine appraisal tools such as graphic rating scales.
Let us look at the main appraisal problems and how to solve them :

1. Unclear Standards

This is an appraisal scale that is too open to interpretation using terms like “good”
performance or “fair” performance. This may result in unfair appraisals because the traits
and degrees of merit are open to interpretation. Different supervisors would define good
performance and fair performance differently. There are several ways to correct this
problem The best way is to include descriptive phrases that define each trait like Specify
what is meant by ’outstanding’, ’superior’ and ’good’. This specificity results in
appraisals that are more consistent and more easily explained.

2. Halo Effect

The halo effect means that the way you rate your subordinate on one trait (such as gets
along with others) biases the way you rate the person on other traits ( such as quantity of
work done).This problem usually occurs with employees who are friendly( or unfriendly)
towards the supervisor. For example an unfriendly employee will often be rated
unsatisfactory for all traits rather than just for the trait “gets along with others”.
Supervisory training can help alleviate the problem.

3. Central Tendency

Most supervisors have a central tendency when filling in rating scales. For example if the
rating scale ranges between 1 to 7 they tend to void the highs ( 6 and 7) and lows ( 1 and
2) and rate most of their people between 3 and 5.If you use a graphical scale this central
tendency could mean that all employees are simply rated ’average”. Such a restriction
can distort the evaluations making them less useful for promotion, salary, or counseling
purposes .Ranking the employees instead of using a graphic rating scale can void this
central tendency problem because all employees must be ranked and cannot all be rated
average .

4. Leniency or Strictness

Some supervisors tend to rate all their subordinates consistently high or consistently
low ,just as some instructors are notoriously high graders and others are not.This
strictness/leniency is especially serious with graphic rating scales since supervisors aren’t
necessarily required to avoid giving all their employees high (or low) ratings. On the
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other hand when you must rank subordinates you are forced to distinguish between high
and low performers. Thus strictness is not a problem with the ranking or forced
distribution. In fact if a graphic rating must be used it may be a good idea to assume a
distribution of performances that, say, about 10% of your people should be rated
excellent and 20% good. In other words try and get a spread unless you are sure that al
your people do fall into one or two categories.

5. Bias

Individual differences among ratees in terms of characteristics like age, race, sex can
affect their ratings, often quite apart from each ratee’s actual performance. In one study
for instance ,researchers found a systematic tendency to evaluate older ratees ( over 0
years) lower on “performance capacity ” and potential for development than younger
employees. The ratee’s sex and sex also affect the person’s rating. In another study
highperforming females were often rated significantly higher than were high –performing
males.

How to Avoid Appraisal Problems

There are at least three ways to minimize appraisal problems:

1. Be sure to be familiar with the problems as discussed. Understanding the problem

can help you avoid it.
2. Choose the right appraisal tool. Each tool has its own advantages and
disadvantages.
3. Training supervisors to eliminate rating errors such as halo, leniency and central
tendency can help them to avoid these problems.

SUMMARY

People want and need feedback regarding how they are doing, and appraisal provides an
opportunity for you to give them that feedback.

Performance appraisal tools include the graphic rating scale, alternation ranking method,
forced distribution method, BARS, MBO and the critical incident method.

Steps in appraising performance include defining the job, appraising performance and
providing feedback.

To prepare for the appraisal interview assemble the data, prepare the employee and
choose the time and place.

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 Appraisal problems to be aware of include unclear standards, halo effect, central
tendency, leniency or strictness problems and bias.

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 BBA301
 Participants
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 Utility
 General
 LESSON ONE: INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
 LESSON 2 WHAT IS HUMAN RESOURCE MANAGEMENT
 LESSON 3 THE HISTORY AND GROWTH OF HUMAN
RESOURCE ...

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 LESSON 4 HUMAN RESORCE PLANNING
 LESSON 5: JOB ANALYSIS
 LESSON 6 THE RECRUITMENT AND SELECTION PROCESS
 LESSON 7: TRAINING AND DEVELOPING HUMAN
POTENTIAL
 LESSON 8 : PERFORMANCE APPRAISALS

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