BMG 2307 -Human Resource Management

By Saradhika Manjaree
01. Introduction to Human
Resource Management

6
 Session Objectives

• Define Human Resource Management (HRM)

• Understand the Unique Characteristics of Human Resources

• Analyse generic purpose, strategic goals, objectives and functions of HRM

• Understand a model of HRM

• Recognize who are responsible for performance of HRM functions

• Understand the significance of HRM

• Understand the consequences of poor HRM

7
What is HRM?

8
 What is HRM?

• “HRM is the term used to refer to the philosophy, procedures and practices
related to the management of people with an organization.”
(W. French)

• “HRM is the effective management of people at work. It examines what

can or should be done to make people both more productive and more
satisfied with their working life.”
(Ivancevich)

9
 What is HRM?
• Human Resources Management is the process of acquiring, training,
appraising, and compensating employees, and attending to their
labour relations, health and safety, and fairness concern (Dessler,
2011).

• HRM is the managerial utilization of the efforts, knowledge,

capabilities and committed behaviours which people contribute to an
authoritatively coordinated human enterprise as part of an
employment exchange to carry out work tasks in a way which enables
the enterprise to continue into the future (Armstrong, M.).

10
 Common Characteristics of HRM
• Focuses on managing people.
• Managing people at work or employees who make up an organisation.
• It exists within an organisation.
• It generally attempts to serve for the organisation where it is practiced, employees
working for it and society at large.
• It is the human side of Business Administration.
• It is a traditional functional field of Business Management.
• It has a set of activities that focuses on effective use of employees for the
accomplishment of organisational goals.
• It is mainly concerned with human relationships within an organisation.
• It has policies, practices and systems influencing employees.
11
 What is HRM?
• HRM is
“HRM is the efficient and effective utilization of human resources to
achieve goals of an organization.”
(H.H.D.N.P. Opatha)

12
 Human Resources?
Unique Characteristics of Human Resources

• It is animate, active and living.

• It has the ability to think, feel and react.
• Its value appreciates with the passage of time.
• It has the ability to influence on determining its cost (pay).
• It has the ability to organize (as unions, teams, etc.).
• Its behavior is complex and may be unpredictable.
• It has the ability of creativity and innovation, which cannot
be found in any other resources.
• It makes decision in respect of all other resources.
13
Generic Purpose of HRM

Generate & retain an

appropriate & contented
(satisfied) workforce that
gives the maximum individual
contribution to organizational
success.

14
 Strategic Goals of HRM
• To improve employee productivity

• Employee development
• To increase quality of work life
• To ensure legal compliance
• To ensure customer compliance

15
 Objectives of HRM
• To procure right people at the right time to do the right jobs
• To retain the most (or at least more) appropriate employees (who
produce desired performance) within the organization
• To get and improve the organizational commitment of employees
• To generate and enhance job involvement and organizational citizenship
of the employees
• To motivate employees
• To enhance job satisfaction of the employees
• To control the cost of employees

16
 Functions of HRM
• Job Design
• Pay Managements
• Job Analysis
• Welfare Management
• Human Power Planning
• Management of Incentives and Benefits
• Recruitment
• Employee Movements
• Selection
• Health and Safety Management
• Hiring
• Discipline Management
• Induction
• Grievance Handling
• Performance Evaluation
• Labour Relations
• Training and Development
• Career Management 17
 Functions of HRM cont.
• These functions are interrelated.
Example:
• Performance evaluation gives inputs to perform the function of training and
development.

• Some functions are interdependent.

Success of one function has a direct impact on determining the
success of another function.
Example:
• Success of selection function depends on successful performance of
recruitment function.

18
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 19

“Responsibility for HRM functions rests with every manager in an
organisation”.

(Werther et al, 1985; Werther and Davis, 1989)

20
 Responsibility of HRM Functions
• HRM is a responsibility of every manager in an
organisation.
• Every manager has a certain set of subordinates to
manage.
• Every manager has to perform functions of managing
these subordinates.
• Thus, HRM is a responsibility of all those who manage
people.

It is a dual responsibility among other (line and

staff) Managers and HRM specialist.
21
 Significance of HRM

• Human Resources are the most important resource that managers

utilize to achieve goals and objectives of an organization.

22
Significance of HRM Cont.

• Quality of other functional fields of management heavily depends on

quality of HRM in an organization.

23
Significance of HRM Cont.

• HRM contributes to organizational success and then societal success.

• Management of employees is more difficult than managing other

resources.

24
 Consequences of Poor HRM

• Employees will frequently struggle with the organization

• Develop interests away from the job
• Poor motivation
• Hire the wrong person for the job
• Experience high turnover
• People not doing their best
• Waste of time with useless interviews
• Legal actions

25
Areas of HRM/Fields of HRM/Major Systems of HRM
• An area consists of several HRM functions and a major work for which a
separate HRM specialist can employed.
Areas of HRM
• Employment Planning
• Job Design
• Job Analysis
• Human Resource Planning
• Staffing
• Recruitment
• Selection
• Hiring
• Induction
26
Areas of HRM/Fields of HRM/Major Systems of HRM Cont..

• Human Resource Development

• Performance Evaluation
• Training and Development
• Career Management
• Rewards Management
• Pay Management
• Welfare Management
• Incentives Management
• Employee and Labour Relations
• Employee Movements
• Health and Safety Management
• Discipline Management
• Grievance Handling
• Labour Relations/Labour- Management Relations
27
 Q&A

Thank You

28
BMG 2307 -Human Resource Management
By Saradhika Manjaree
02. Job Design

2
 Session Objectives

• Define the meaning of Job Design

• Understand the significance of Job Design

• Identify techniques of Job Design

• Understand elements of Job Design

• Understand the way of finding the balance between efficiency elements and
behavioural elements of Job Design

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

What is Job Design?

5
 What is Job Design?

• The function of arranging tasks , duties and responsibilities into an

organizational unit of work for the purpose of accomplishing a
certain objective.

• Job design is a creation of jobs which individuals in the organization

have to perform.

6
 What is a Job?
• The result of breaking the primary organizational work into individual
assignment.
• Jobs are basic building blocks of the organization.
• An organizational unit of work is a job that is composed of three main
components tasks, duties and responsibilities.

7
 Tasks, Duties and Responsibilities

• Tasks - is a series of motions and is a distinct identifiable small activity.

• Duty - is a series of tasks and is a large work segment.
• Responsibility - is the obligation of performing the entrusted tasks and
duties successfully.

8
Tasks, Duties and Responsibilities Cont.

Job Tasks Duty Responsibility

University Senior • Talking Delivering lectures Performing the
Lecturer • Writing entrusted task and
• Observation duties successfully
• Asking questions
from the students
• Giving answers for
the questions raised
by the students

9
Tasks, Duties and Responsibilities Cont.

Job Tasks Duty Responsibility

Front Desk Clerk • Greeting guests Registering Performing the
• Verifying the reservation guests entrusted task and
• Assigning rooms duties successfully
• Receiving any form of
payment
• Issuing keys
• Providing a brief
description on different
areas of the hotel
• Providing direction to
room
10
 Activity

1. Select a job that has not been discussed in the lecturer's

presentation and provide a detailed description of the tasks, duties,
and responsibilities associated with that job.

Please provide your response within 10 minutes.

Share your answer with the nearest colleague sitting next to you.
Assign a score to your colleague's answer.
Finally, assess how many marks you receive.

11
 Significance of Job Design
• Job design affects directly to the success of the organization.

• Job design affects overall individual job performance. It has a direct

impact on
• Efficiency
• Effectiveness
• Productivity
• Satisfaction
• Training and development
• Health
of the employee.

12
 Inappropriate job design results in

• Lower productivity
• Higher employee turnover
• Many grievances
• Many industrial conflicts
• Higher absenteeism

13
Techniques of Job Design

14
 1. Scientific Technique

• Basic objective of this technique is to maximize the organizational

productivity by maximizing employee efficiency.

• This results in a more specialized job that has a shorter job cycle, which
is the required time to complete every duty in the job for once.

15
 2. Job Enlargement
• Increasing the scope of a job by including a new related duty/duties in
addition to the current duties.
• Job scope of a job refers to the contents of the job or amount and
variety of duties.

• Ex:

Chapter 02 16
 3. Job Enrichment

• Increasing the depth of a job by expanding authority and responsibility

for planning, doing and controlling the job.
• The depth of a job refers to authority (legitimate right) and
responsibilities (obligations) for planning and controlling the job. It
results in that the job holder has more legal power to plan and control
his/her job and he/she is more responsible for his/her job performance.

Chapter 02 17
 4. Job Rotation
• Job rotation is shifting an employee from one particular job to another
without limiting the employee to do a particular job only.
• Ex:

18
 Techniques of Job Design

Professional Technique
• Designing job according to a certain accepted professions.
• Ex: Accountants, Lawyers etc.

Group Technique
• Job is designed so that a group of individuals can perform it. Result is a
collective job rather than an individual job.
• Ex: Delivering a course of a degree programme by two or three lectures
instead of one lecturer.

19
Elements of Job Design

20
 Elements of Job Design

• Elements of job design refer to qualities or features to be considered

and included in designing a particular job.
• There are two categories of elements,

Efficiency elements Behavioural elements

(Division of labour, (Skill variety, Task
Standardisation and identity, Task significance,
Specialisation) Autonomy and Feedback)

21
 Elements of Job Design
Efficiency Elements
• Division of labour
Breaking jobs into their smallest component parts and employing
separate/different persons to do each part separately.
• Standardisation
The “one best way to” do a certain job/task/duty with a more simplicity and
at a lower cost is discovered through work study and then, having accepted
it every person follows.
• Specialization
An employee’s concentration on one particular type of work so that the
employee acquires an expertise in that type of work.
22
 Elements of Job Design
Behavioural Elements
• Skill Variety
The extent to which the job requires use of different skills.
• Task Identity
The extent to which the job involves doing some complete piece of work.
• Task Significance
The extent to which the job has an impact on other people’s work.
• Autonomy
The degree of independence and freedom the job holder has.
• Feedback
The extent to which clear information of results in respect of individual efficiency
and effectiveness is provided.
23
Elements of Job Design Cont.

Efficiency Elements
• Greater specialization
• Less variety
• Less task identity
• Low task significance
• Minimum autonomy

24
Elements of Job Design Cont.

Efficiency Elements
The relationship between Productivity and Specialization

25
Elements of Job Design Cont.

Behavioural Elements
• More Varity
• More task identity
• High task significance
• More autonomy
• More feedback

26
Trade-off between Efficiency Elements and Behavioral
Elements
• It is more likely that making the job more productive by using more
efficiency elements causes it to be less satisfying.
• Making the job more satisfying by using more behavioral elements more
likely proves to be less productive.
• It means that attempting to achieve both productivity and employee
satisfaction to the highest extent is mutually exclusive.

What should HR specialist do?

• There should be a trade off between efficiency elements and behavioral
elements.
27
Trade-off between Efficiency Elements and Behavioral
Elements Cont.

• It is possible to achieve the work of designing a job which is both

productive and satisfying by having a balance between the efficiency
elements and behavioural elements.
• Relevant job should be fitted to the employee for a better job design. That
is matching characteristics of the employee/job holder with characteristics
of the job.

28
 Employee/Job Fit Concept

• Person/Job Fit Concept (Employee/Job Fit Concept) - Relevant job should

be fitted to the employee for a better job design. That is matching
characteristics of the employee/job holder with characteristics of the job.

Chapter 02 29
 Employee/Job Fit Concept Cont.

• If there is a mismatch between the employee and the job (The employee
may not fit for the job or job is not fit for the employee) ??
• Solutions ???
• Change the employee to fit the job
• Providing a special training to the employee
• Employee could be replaced by another employee who is fit for the job (Through job rotation,
permanent transfer, hiring and firing)
• Redesign the job
• Job rotation
• Job enlargement
• Job enrichment

30
 CA 01- Group 03

Discuss answers for following questions with examples.

• In what ways can technology and automation be integrated into job
design to enhance efficiency and effectiveness while maintaining job
satisfaction?
• How can job design be adjusted to accommodate the needs of a
diverse workforce, including different age groups and backgrounds?

We look forward to hearing from you in the coming week.

31
 Q&A

Thank You

32
BMG 2307 -Human Resource Management
By Saradhika Manjaree
02. Job Analysis

2
 Session Objectives

• Define what Job Analysis is.

• Understand the significance of Job Analysis .

• Elaborate process of Job Analysis.

• Discuss various methods of data collection about jobs.

• Distinguish between Job Description and Job Specification.

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

What is Job Analysis?

5
 What is Job Analysis?

• Job Analysis is a systematic process of investigation of jobs and job

holder characteristics in order to create a collection of information
that can be used to perform various HRM functions.
Opatha(2009)

6
 Difference between a Job and Position
• A position is a collection of tasks, duties and responsibilities to be
performed by one person.
• If there are 10 production supervisors working presently for an organization ,
there are 10 positions for the job of Production Supervisors.

• A job is a grouping of similar positions having common tasks, duties

and responsibilities.
• Job – Production Supervisor

7
8
 Process of Job Analysis
01. Acquire a general familiarity with the organization

02. Identify and select job/s to be analyzed

03. Develop a Job Analysis checklist

04. Collect data

05. Apply Job Analysis data

06. Evaluate Job Analysis effort

Feedback
9
Process of Job Analysis cont.

1. Acquire a general familiarity with the organization

• Job analyst should acquire a general understanding with respect to
the organization where job analysis is going to be done.
• Study overall mission, objectives, strategies, structure, inputs
(people, materials) and output (goods and service), strategic plans,
annual reports, organization charts.

10
Process of Job Analysis cont.
2. Identify and select job/s to be analyzed
• Identify the different jobs within the organization. For that job analyst
can use
• Payroll records
• Organization charts
• Telephone directories
• Previous job analysis records

11
Process of Job Analysis cont.
3. Develop a Job Analysis checklist
• Develop checklists or questionnaires/ job analysis schedules.
• May have to develop different checklists on different jobs such as
managerial, technical, professional and clerical.
• These checklists usually include questions relating to the following:
• Job identification data
• Duties and responsibilities
• Human characteristics
• Working conditions
• Health and safety conditions
• Performance standards
• Other job-related features

12
 Process of Job Analysis cont.
4. Collect data
• In this step job analyst is collecting data with the use of the checklist
prepared.

13
Data Collection Methods

14
 Observation
• This is a method of data collection by which the job analyst observes
directly the incumbent(person presently working on the job)
performing his/her job and takes notes to describe tasks, duties and
other related things.
Advantages Disadvantages
Deeper understanding of the job can be May interfere with normal operations
obtained
Helps to confirm data obtained from Not appropriate for jobs without
other methods or remove doubts complete and easily observable job
cycles
Working conditions and hazards can be Possibility of missing irregularly occurring
better understood activities
Impossible to observe mental activities of
jobs
Time-consuming and slow
Chapter 02 15
 Interviews
• Interviews are probably the most widely used job analysis data
collection method.
• The job analyst holds interviews with job incumbents, their
supervisors, subordinates, clients or other knowledgeable people.
Advantages Disadvantages
It permits the job analyst to explain unclear Its very costly and time consuming
questions and probe into uncertain answers
It serves as an opportunity for the analyst to If interviewees are suspicious about
explain the interviewee about the the
purpose of job analysis and its uses purposes of job analysis, they may
distort the data resulting in that
inaccurate data are collected
Data about irregularly performed activities
and mental activities can be
gathered
It can provide in depth
Chapter 02 data 16
 Jury of experts/Technical Conference
• In this method job analysis data are collected from a panel of experts such as supervisors
and/or long-time employees who are very familiar with the job/senior job incumbents.
• The panel represents considerable knowledge and experience about the job.
Advantages Disadvantages
It does bring together a large body of experience The experts might not be able to come
relevant to a particular job in one place at one to an agreement
time
The interaction of the members during the It is expensive due to the nature and
discussion can add insights and details of the job number of people involved.
being concerned that the job analyst may not get
from other methods

It allows participants to clarify expected job Holding a technical conference is not

duties and responsibilities always feasible due to being busy of
experts
Appropriate for jobs that are difficult to define It takes a great deal of time

17
 Questionnaire
In this method, a questionnaire is developed from the job analysis
checklist and that is given to employees and their superiors to complete.
Advantages Disadvantages
It is possible to collect data about a large It may be less accurate due to
number of jobs in a relatively short period misunderstood questions,
of time incomplete responses, and unreturned
questionnaires
It is fast and less costly Developing, coding and analysing the
questionnaire
are time consuming and laborious process
It is possible to get data from many The method is based on the assumption
employees in a uniform way that respondents have the reading
competence so that they understand the
questions and communicate data about
their jobs. This may not be a valid
assumption in all cases

18
 Employee log
• This method requires the job incumbent to mention and describe duties, tasks,
frequency of duties, and other related things in a diary/ log on a daily basis .
• Employees periodically record their tasks and duties in the diary.
Advantages Disadvantages
If entries are made over the entire job Many employees may be reluctant to
cycle, the diary can prove quite record day to day activities or all activities
accurate that occur within the job
cycle

It is very useful, perhaps only feasible Most employees may not be disciplined
method when analyzing complex jobs enough to keep such a diary or record for
all activities in the job cycle

If a diary is kept up to date, it can It is the time consuming for the job holder
provide good information about the and job analyst too
job

19
 Participation
• In this method the job analyst actually does performance of the job him/herself.
• He/she studies tasks, duties, responsibilities and other characteristics of the job by
performing it.
Advantages Disadvantages
First-hand information could be May be dangerous for hazardous jobs
gathered Eg: Fire fighters, patrol officers
Fairly good for simple jobs that can Unethical/illegal for jobs requiring licensing or
easily be learnt extensive training
Eg: Medical doctor, psychologist, pharmacist
Degree of rigor of job can genuinely be Impossible to use for complex jobs that necessitate an
understood advanced education and training
Eg: Professors, Medical Specialists

• Combination
• Using two or more methods concurrently
20
Process of Job Analysis cont.
5. Apply job analysis data
• Through successful performance of the fourth step it is possible to
obtain a set of data(and information) about the job/jobs.
• Using this set of data two major documents about the jobs are
prepared.
• They are
• Job Description
• Job Specification

21
Process of Job Analysis cont.

Job Description
• A job description is a document that describes duties, responsibilities,
working conditions and other aspects of a particular job.
• One job description is prepared for one job.
• Basically the job description indicates
• what is done,
• why it is done,
• where it is done, and
• briefly how it is done.
• As such, it is a summary of duties, responsibilities and other
characteristics of a job.
22
Process of Job Analysis cont.
Job Specification (Person Specification/Job Holder Specification)
• Job specification is a document that specifies key qualifications an
individual needs to perform a particular job.
• It describes capabilities needed by the ideal job holder to perform a
particular job successfully.
• It is the profile of the person who is ideally required for the job being
considered.

23
Process of Job Analysis cont.

24
Process of Job Analysis cont.
Comparison between Job Description and Job Specification
Job Description Job Specification
Specifies tasks, duties, responsibilities, Specifies the key qualifications an
working conditions and other aspects of individual needs to perform the job
a specific job efficiently and effectively
Describes the job Describes the person ideally needed to
perform the job
Is a profile of the job characteristics Is a profile of human characteristics
needed for successful performance of the
job
Contains: Purpose of the job, Duties, Contains: Education, Experience,
Working conditions etc. Competencies, Special mental and
physical abilities and qualities
25
Process of Job Analysis cont.
5. Evaluate Job Analysis effort
This step involves assessing the degree of success of the above steps having performed.
The feedback information obtained from this evaluation can be used to make the job
analysis process more successful in the future.
Useful questions for the evaluation
• Are prepared job descriptions sufficient to describe the jobs?
• Are prepared job specifications sufficient to describe the ideal job holders?
• Are the methods used to collect data adequate? Was it possible to collect all expected
data from the method/s used?
• Can all concerned understand the prepared job descriptions and job specifications
adequately? etc..

26
 CA 01- Group 05
1. How are advanced data analytics and artificial intelligence being
utilized in modern job analysis techniques to enhance the accuracy
and efficiency of job descriptions?
2. How do organizations create and adapt job descriptions and job
specifications to effectively communicate expectations and
requirements for employees in flexible work arrangements, such as
remote work or job-sharing?

We look forward to hearing from you in the coming week.

27
 Q&A

Thank You

28
BMG 2307 -Human Resource Management
By Saradhika Manjaree
04. Human Resource
Planning
HRP

2
 Session Objectives
• Define what Human Resource Planning is
• Explain why Human Resource Planning is important for an organization
• Understand the Human Resource Planning process
• Explain the causes of future human resource demand and human resource
supply
• Understand the forecasting techniques available for forecasting the future
human resource demand
• Identify strategies to be taken for surplus conditions and shortage conditions

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

What is Human Resource
Planning?

5
 What is Human Resource Planning (HRP)?

• Human Resource Planning is the process of determining future

employee needs and deciding steps or strategies to achieve those
needs for the purpose of accomplishing organization goals and
objectives.
Opatha (2009)
• Main objective of Human Resource Planning is to
Prepare the organization to acquire the appropriate employees
for the appropriate jobs at the appropriate times for the
purpose of accomplishing the overall organizational goals.

6
 What is Human Resource Planning (HRP) Cont.?

Human Resource Planning (HRP) may be defined as an attempt to

forecast how many and what kind of employees will be required in future,
and to what extent this demand is likely to be met. It involves comparison
of an organization’s current human resources with likely future demands
and consequently, the establishment of programmes for hiring, training,
redeploying and possibly discarding employees. Effective HRP should
result in the right people doing the right things in the right place at
precisely the right time.
Graham & Bennett (1992)

7
 Significance of HRP
• To determine future employee needs
• An organization wants to know future employee needs.
• What type of employees are needed? How many employees are needed
for the next month or next year?
• To get answers for the two questions correctly it is essential to do HRP.
• Without doing HRP the organization will not be able to determine
employee needs for future.

• To utilize human resources more efficiency and effectively

• Careful analysis of all HRM activities shows that their effectiveness and
efficiency depends on HRP.
8
 Significance of HRP
• To control employee cost
• Through HRP it is possible to know in advance employee surpluses or
shortages which may occur in future.
• Hence it is possible for the organization to get prepared in advance in order to
prevent from occurring surpluses or shortage of employees.

• To develop highly competent managerial and professional employees

• Generally there is a scarcity of highly competent/ talented employees in the
market.
• The lead time that is required to procure, train and develop such employees is
long.
• Successful HRP provides an adequate lead time for the procurement, training
and development of such employees.
9
 Significance of HRP

• To formulate and implement strategic plans

Modern competitive organizations engage in strategic planning which
results in strategy that is the organization’s long-term plan.
In fact strategic plan involves long term decisions to achieve the
organization’s vision, mission and strategic objectives.
HRP provides information inputs for strategic planning efforts.
It will show human resource strengths and weaknesses which will be
useful for developing the long-term plan.

10
Some organizations do not engage in HRP – Reasons

• Lack of understanding about the purposes of HRP

• Non availability of experts in HRM within the organization or inability of
procuring such experts to the organization
• Habit of doing staffing field according to human resource needs which
arise on day to day basis
• Habit of doing HRP informally for a short period of time
• Lack of financial resources

11
 HRP Process
01. Forecast future demand for Human Resources

02. Estimate Human Resources supply

03. Compare forecasted demand with estimated supply

04. Decide strategies to be taken

05. Assess HRP effort

Feedback

12
1. Forecast future demand for Human Resources
Forecasting employee requirements for the organization comes under
this step.
Forecasting demand for human resources involves estimating the types
and numbers of employees needed for future.

13
1. Forecast future demand for Human Resources Cont.

• Demand for the product

• Strategic plans of the organization
• Production methods
• Retirements
• Resignations
• Deaths
• Leave of absence
• Termination
• External factors (Economic, Social and Political Forces)

14
Forecasting Techniques

15
 Informal Forecast
• This is the easiest way of forecasting future demand for human
resources.
• Under this technique, future demand for human resources is
determined without a systematic base and it is done quickly and
randomly.
• It uses intuition or hunch (an idea or opinion accompanied by a strong
feeling that is correct or true, although there is no careful thinking or
evidence to justify).
• Generally this technique may be good only for small organizations but
cannot be recommended as a good method for large organizations to
apply.

16
 Formal Expert Survey
• Systematically future demand for human resources is estimated by
conducting a survey among experts.
• A better method is for planners to survey managers, who are experts
about their department’s future employment needs; and centralization
of this information permits formal plans that identify the organization’s
future demands.
• Data collection can be done by using a questionnaire or conducting
interviews.

17
 Delphi Technique
• This is a special kind of expert survey.
• It is more sophisticated than the formal expert survey.
• The Delphi technique is to solicit estimates from a group of experts,
usually managers and HR managers and HR department planner acts as
an intermediary.
• Its purpose is to obtain the most reliable consensus of opinion of a group
of experts; it consists of intensive questioning of each expert, through a
series of questionnaires, to obtain data that can be used to make
“educated” forecast; and the procedures are designed to avoid direct
meetings between the experts in order to maximize independent thinking
• Thus, the technique attempts to obtain independent judgments from a
panel of experts.
18
 Delphi Technique Cont.
Five Steps in Delphi Technique
1. An issue, question, or problem is identified.
2. A small group or panel of ten or fewer experts is identified.
3. Independent judgments about the issue are obtained from each expert through a questionnaire or
structured interview.
4. An intermediary or facilitator collects, analyzes and feeds back information from the first
questionnaire or interview to each expert.
5. Steps 3 and 4 are repeated until there is a consensus on the issue or problem.

Round Expert A Expert B Expert C Expert D Expert E

Ex: First 33 45 50 40 60
Second 38 42 40 50 55
Third 40 41 42 42 45
Final 42
Estimate
19
 Unit Forecasting

• Unit forecasting method is a broad approach to human resource

forecasting and it uses a “ bottom up” approach.
• Accordingly, each unit (department, division or section) head of the
organization has to do the personnel forecast with regard to the relevant
unit.
• Thereby, each head is supposed to submit the forecast of the unit to
his/her superior, who is supposed to study the forecasts submitted by all
the unit heads and then is required to prepare a personnel forecast by
adding with or without adjustments.
• If there are further levels the same process is carried out.
• Finally, the head of the organization prepares the personnel forecast for
the entire organization.
20
 Extrapolation

• Extrapolation involves extending past rates of change into future .

• It is based on past data and an attempt is made to find a trend or a
pattern that might continue into the future.
Ex:
Year No of
How many employees does this company need to
Production
increase for the year 2021?
Employees
2020 410 It is possible to calculate this by taking the mean
2019 394 of the changes with regard to the number of
employees used for the past five years.
2018 380
(13+16+14+16)/4 = 14.75 = 15
2017 364 Thus, number of new employees hired for the
2016 351 year 2021 is 15.

21
 Ratio Analysis

This is another approach that means making forecast based on the ratio
between
(1) some casual factor (like sales volume) and
(2) number of employees required.

22
1. Forecast future demand for Human Resources Cont.

Staffing Table / Manning Table

• A staffing table lists the future employment needs for each type of job.
• This listing may be a specific number or an approximate range of
needs, depending on the accuracy of the underlying forecast.
• These estimates allow personnel specialists to match short range
demand and supply.

23
1. Forecast future demand for Human Resources Cont.
Staffing Table / Manning Table
Ex: Daya Company
Manning table for the year ending 31 – 12 - 2020

Chapter 04 24
 2. Estimate human resource supply
Two sources of human resource supply.
1. Internal Supply - Internal supply consists of current employees who can be
promoted and transferred to meet forecasted needs or fill job vacancies
which are in the staffing table.
2. External Supply - External supply consists of people who are working for
other organizations in industries and job seekers who are unemployed. They
are the people who are in the employee market.

25
2. Estimate human resource supply cont.
Steps in Estimating Human Resource Supply
i. Auditing current human resources
This means assessing education, experience and competencies of all the
current employees in the organization.
In this context HR audit is a systematic attempt to summarize each
employee’s education, experience and competencies.
The audit results in preparing two documents:
• Skill inventories
• Management inventories

26
2. Estimate human resource supply cont.
Skill Inventories
Skill inventories - The audits of non managers
A skill inventory should contain the following information accurately:
• Identification information of the employee(name, address, sex, age, etc.)
• Identification information of the current job( job title, job location etc.)
• Education ( academic and professional)
• Experiences including previous jobs held
• Seniority
• Special competencies
• Trainings
• Current and past job performance evaluations
• Promotability
• Weaknesses
• Preferences

27
2. Estimate human resource supply cont.

Management Inventories
Management inventories - The audits of managers
In addition to the mentioned information in a skill inventory, a
management inventory includes the following matters:
• Number of subordinates supervised
• Jobs and duties of the subordinates
• Total budget managed
• Management training received
• Management systems developed and implemented
• Creative works and innovations

28
2. Estimate human resource supply cont.
Steps in Estimating Human Resource Supply
ii. Identifying and arranging possible replacements
By comparing HR audit information ( skills and management inventories)
with the job analysis information ( job description and job specification),
it requires identifying and deciding the most appropriate persons from
the current employees to fill the job vacancies.
These replacements or tentative assignments can be recorded on
replacement charts.
Replacement chart/succession chart - A replacement chart is a visual
representation of who will replace, whom in the event of a job opening.
Succession planning – Process of deciding replacements to fill job
vacancies.

29
An Example for Replacement Chart

Chapter 04 30
3. Compare forecasted demand with estimated supply
The third step of the process of HRP is to compare forecasted demand
with estimated supply.
Here calculating net employee requirements for the relevant period of
planning should be done.
It is possible to calculate net employee requirements by the following
way.
• Net Employee Requirement = Estimated Supply – Forecasted Demand
• A positive net employee requirement indicates a surplus of employees
• A negative net employee requirement indicates a shortage of employees
for the job being considered.

31
An Example for Calculating Net Employee Requirement

Chapter 04 32
Classroom Activity
1.Refer to the below table on net employee requirements in ABC Company
Calculate the net employee requirements of the different job titles and
briefly explain the strategies to be taken to remove surplus or deficit in
each job title.
Job Forecast Forecast Net Employee
Job Title
No. Demand Supply Requirement

M02 Management Trainee 01 04 +03

O05 Machine Operators 05 01 ??

S03 Sales Executive 03 04 ??

Total Xxx Xxx Xxx

33
 4. Decide strategies to be taken
This steps involves in deciding how to remove positive employee
requirements (employee surpluses) and negative employee
requirements (employee shortages).

34
4. Decide strategies to be taken cont.
Strategies in surplus conditions:
• Hiring freeze (Stoppage of hiring new employees further)
• Reduction of reward expenditure
• Attrition ( Voluntary departures)
• Encouragement of leaves of absence
• Early retirement on voluntary basis
• Lay off (temporary stoppage of employee service with an
intention of rehiring in future)
• Formal outplacement facilities
• Retrenchment/Termination
35
4. Decide strategies to be taken cont.
Strategies in shortage conditions:
• Have current employees work for overtime
• Sub-contract work to other firms
• Provide opportunities for learners for a period of time
• Hire part time employees
• Hire temporary full-time employees
• Hire permanent full-time employees
• Capital substitution

36
 5. Assess HRP effort

HRP effort has to be assessed in order to determine its impact on

accomplishing organizational goals and objectives.

By obtaining information for the following questions it is possible to evaluate

success or failure of the HRP effort at the end of a certain period of time.
• Did the job vacancies which had not been forecasted occur? Not?
• What is the difference between the forecasted number and the actual number of job vacancies with
regard to a job?
• Are there current employees who are suitable for filling the job vacancies but who were not considered or
ignored for replacements?
• Are there job vacancies which were not filled at the right time during the period being considered?
• How long did job vacancies remains vacant?
• Is there any surplus regarding a certain job during the period concerned? If so, how much did it cost?
• How much cost did it incur for human resource planning? etc

37
 CA 01- Group 11

1. How has the COVID-19 pandemic affected organization's human

resource planning, and what strategies have some companies
implemented to adapt to the changing workforce dynamics?
2. Describe the challenges encountered by HRM practitioners when
planning for the human resource requirements of their
organizations in the modern era.

We look forward to hearing from you in the coming week.

38
 Q&A

Thank You

39
BMG 2307 -Human Resource Management
By Saradhika Manjaree
05. Recruitment

2
 Session Objectives

• Define the meaning of recruitment.

• Explain the importance of recruitment.

• Detail recruitment process.

• Differentiate between internal recruitment policy and external recruitment

policy and point out their major advantages and disadvantages.

• Illustrate various methods of recruitment.

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

What is Recruitment?

5
 What is Recruitment?
• ‘Recruitment is that set of activities an enterprise uses to attract job
candidates who have the abilities and attitudes needed to help the
enterprise achieve its objectives’.
Glueck F. William

• ‘Recruitment is the process of generating the pool of qualified applicants

for organizational jobs’.
Mathis and Jackson

• ‘Recruitment is the process of finding qualified people and encouraging

them to apply for work with the firm’.
Wendell French
6
 What is Recruitment?

‘Recruitment is the process of finding and attracting suitably qualified

people to apply for employment’.
HHDNP Opatha

General Purpose of Recruitment

is to provide the organization with a pool of potentially
qualified job candidates.

7
 Importance of Recruitment
1. To acquire a pool of suitably qualified job
seekers, not over qualified or under
qualified job seekers.
2. To acquire this pool at the lowest possible
cost.
3. To reduce the likelihood that an applicant,
once hired would leave the organization
after a short time.

8
Recruitment and Related HRM Functions

HRP
Determining needed type
and number of employees

Selection
Job Analysis
Determining the most
Providing Job Description and Recruitment appropriate person to fill the
Job Specification
vacancy

Reward Management
Deciding competitive
salaries/wages, incentives and
benefits used to attract job
applicants
9
A Model for Recruitment Process
01. Identify job vacancies

02. Ascertain job requirements

03. Consider factors affecting recruitment

04. Prepare job application form

05. Select the method (s) of recruitment

06. Implementation

07. Evaluation Chapter

of recruitment
05
effort 10
 1. Identify job vacancies

• It is possible to know the number of vacancies

with regard to a certain job through Human
Resource Plan and specific requests made by
managers.
• HR Requisition Form – A special form used for
the purpose of obtaining special requests from
managers in respect of filling vacancies.

11
An Example for a Typical HR Requisition Form

Chapter 05 12
 2. Ascertain job requirements
• Having identified job vacancies, HR manager or relevant manger who is in
charge of recruitment should ascertain job requirements ( special job
characteristics and qualifications and qualities to be possessed by the needed
person to perform the job).
• Job description and job specification can be used to obtain a proper
understanding about the job requirements.
• Without this understanding it is not possible to prepare a right Recruitment
Message (Notice used - to notify people or persons that there are job
vacancies in the organization and – to invite people to apply for the
vacancies).

13
 3. Consider factors affecting recruitment
Factors that affect recruitment
• Organizational recruitment policy
• Internal recruitment policy – (Procuring candidates to fill vacancies within the
organization itself)
• External recruitment policy – (Procuring candidates to fill vacancies from the
outside of the organization)
• Cost
• Employee market condition
• Time
• Type of employees needed

14
Advantages and Disadvantages of Internal Recruitment
Policy
Advantages
• Possible to attract people who expect career Disadvantages
development
• Possible to retain current appropriate • Prevents from flowing inside new
employees knowledge and skills
• Motivates employees • Less possibility of having the most
• Cheaper/Lesser cost of recruitment appropriate person from a large
• Encourages sound labor-management number of recruits
relationships • Avoids new blood. Retains old blood.
• Lesser orientation time or no need of Inbreeding occurs.
induction • Higher cost in procuring professionals
• Creates employee moral • Cannot be applied for entry-level jobs
• Possibility of filling the vacancies at a
shorter time is higher 15
Advantages and Disadvantages of External Recruitment
Policy
Advantages
• Opportunity to get people with new Disadvantages
knowledge and skills
• Possible to employ more active and young • Demotivates internal/current
executives and specialists employees
• Lower cost for training and development • Higher cost to be incurred for the
• Obtain new blood minimize the occurrence recruitment effort
of inbreeding • May lead to bad/negative labor and
• Opportunity of having the most appropriate industrial relations
person from a large number of recruits • Higher induction time
• This policy has to be applied for the entry
level jobs

16
 4. Prepare job application form
• Job application form can alternatively be called Employment Application
Form.
• Specially job application form prepared by the organization is used to
collect information about job applicants in uniform way.
• But this step may not be applicable to all the jobs.
• When accepting job application forms prepared by the applicants
themselves there is no need of a specially prepared job application
form.

17
 5. Select the method(s) of recruitment
It is essential to know where to recruit in order to find out suitably qualified
applicants.
There are two major types of methods of recruitments.
• Internal
• These methods are used when recruiting applicants within the organization.
• External
• These methods are used to recruit job seekers outside the organization. These job
seekers are employees who are working for other organizations and people who are
not currently employed but are seeking jobs.

18
Internal Methods of Recruitment

19
1. Simple Word of Mouth
• This means that the management informs internal relevant employees verbally
about the job vacancies and request them verbally to apply for.

2. Job Posting and Bidding

• This means notifying job vacancy or vacancies on organizational notice boards or
in organizational magazines or booklets or newsletters and calling for applications
for the vacancies from the working employees within the organization.

3. Skill Inventories and Management Inventories

• A skills inventory refers to a document that specifies competencies of a current
non managerial employee in the organization while a management inventory
refers to a document that catalogues technical competencies, human relation
competencies, and other competencies of a current manager in the organization.

20
4. Intranet
• Using intranet job vacancies can be advertised among current employees
within the organization. E- advertising of job vacancies occurs, and this is not
open to outside people in the labour market. Using e-mail facility is also
possible to inform relevant internal employees about the job vacancies.

5. Succession Plans
• Succession plans are kind of human resource plans and they show future
replacements when relevant job vacancies occur.

21
External Methods of
Recruitment

22
1. Referrals( Internal)
• This method involves requesting current employees who are working for the
organization concerned to send suitable job applicants for the job vacancies.
2. Employee Referrals ( External)
• This method involves informing present employees who are working in other
organizations about job vacancies and requesting them to recommend their
friends or relatives or other qualified persons seeking jobs.
3. Pre –Applicants ( walk-ins and write-ins)
• Walk-ins are job seekers who come to the organization in search of jobs while
write-ins are job seekers who write to the organization by sending their
applications.

23
4. Past Employees
• Past employees are the people who have previously worked for the
organization that wants to recruit.
5. Educational Institutions
• Educational institutions refer to schools, colleges, and universities.
6. Employee Organizations/ Trade Unions
• People for employment can be recruited from employee organizations such
as trade unions.
7. Employment Agencies
• An organization can delegate the work of recruitment to an employment
agency which is a business organization specializing in recruitment.

24
8. Executive and Professional Search Firms
• These are also a type of employment agencies, but they differ from them in terms
of recruitment approach. Agencies recruit people through advertising while
executive and professional search firms search people through personal
contacting.
9. Professional Institutions
• Professional institutes such as Chartered Institute of Accountants of Sri Lanka,
IPM Sri Lanka, Sri Lankan Institute of Marketing etc., can be contacted in order to
find people suitable for relevant professional jobs.
10. Open Houses and Job/ Career Fairs
• An open house is a special event organized by one organization to recruit job
applicants to fill its vacancies.
• A job or career fair is a special event organized by a group of organizations or
employers for the purpose of recruitment. It involves many different employers
gathering at one location to recruit job seekers who come from all the areas of the
country. 25
11. Internet Job-Posting Sites
• Using Internet, qualified job seekers can be recruited. There are separate sites
for notifying all the details of job vacancies. Ex: topjobs, xpress jobs,
carrerfirst etc.
12. Clients
• In here the organization can request its loyal clients to nominate job
applicants for the selection.
13. Advertising
• This is a more popular method of seeking recruits. An organization may
publicize its job vacancies through modes such as televisions, radio, banners,
posters and newspapers.
• Open Advertisement - Gives the name of the organization which wants to recruit and
address of the organization
• Blind Advertisement - Does not reveal the name and address of the organization.
Applicants are requested to submit their applications to a post box or to the advertiser
Chapter 05 26
 6. Implementation

• Under this step, decisions taken in the above steps are implemented.
Performance of the above steps results in development of recruitment
plan really.
• To implement this plan occurs in this step.
• It involves that individuals apply for job vacancies and the organization
receives the applications from those individuals.

27
 7. Evaluation of Recruitment Effort

Ratios of Evaluating Success of Recruitment

• Number of recruits (applicants who were recruited) per month
• Number of recruits within a particular duration
• Cost per recruit (Total recruitment cost/number of recruits)
• Ratio of qualified recruits to unqualified recruits

28
 Increasing Job Applicants

Some strategies to increase the number of suitably qualified job

applicants
• Communicate a sufficient deal of information about the job and the
organization
• Give a realistic purview of the job
• Increase opportunities for career development
• Stop hiring based on political and other influences and stress that any
forms of canvassing or influencing will strictly be a disqualification
• Broaden employee welfare facilities and publicise them

29
 CA 01- Group 09
1. How would AI and machine learning tools be utilized to improve the
recruitment process in the modern era? Can you provide examples
of specific technologies that would enhance the recruitment
strategy?
2. How is diversity and inclusion approached in recruitment? Share
strategies employed to attract diverse talent and ensure an
inclusive workplace culture?

We look forward to hearing from you in the coming week.

30
 Q&A

Thank You

31
 BBM2316/BBM1307
Human Resource Management
By Saradhika Manjaree
 CA 01 Presentation Order
Order Group No
1 Group No. 03
2 Group No. 05
3 Group No.11
4 Group No.09
5 Group No.14
6 Group No. 01
7 Group No. 04
8 Group No.07
9 Group No.16
10 Group No. 02
11 Group No. 06
12 Group No.15
13 Group No.12
14 Group No.13
15 Group No.10
16 Group No.08 2
06. Selection

3
 Session Objectives
• Define the meaning of selection.
• Understand three objectives of selection.
• Explain the unfavorable consequences of a wrong selection decision
• Describe main methods of selection.
• Understand a typical selection process.

4
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 5

What is Selection?

6
 What is Selection?
• ‘Selection is the process of making the choice of the most
appropriate person from the pool of applicants recruited to fill the
relevant job vacancy’.
H.H.D.N.P. Opatha

7
What is Selection? Cont…
• Selection function can be perceived as a negative function and on the
other hand recruitment function can be perceived as a positive function.

• “This (selection) could be called ‘rejection’ since more candidates may be

turned away than hired. That is why; selection is more perceived as a
negative process in contrast with the positive process of recruitment”.
Singh et al (1990)

8
 What is Selection?

Purpose of Selection Function

is to choose the most appropriate person to fil the job vacancy through
application of several methods.

9
 Objectives of Selection

1. To get the right person for the right job.

2. To establish or maintain an image as a good employer.
3. To perform the selection process as cost effective as possible.

10
Unfavourable Consequences of a Wrong Selection Decision

1. Expected job performance does not occur as long as the wrong employee
is within the organization.
2. Loss of appropriate /expected contribution that could have been acquired
by selecting the right person.
3. Cost incurred for induction and training of the wrong employee will go in
vain.
4. Possibility of occurrence of losses and cost.
5. Cost of grievance handling arising from an elimination decision.
6. Additional cost in procuring a new right employee.
7. Possibility of harming thoughts of some existing employees who have to
interact with the wrong employee.

11
Selection Methods

12
 1. Employment Application Evaluation
Assessing the applicant’s suitability for the job vacancy using the
information given in the application form sent by him/her.
Advantages:
• It is easy to compare job candidate’s qualifications and other
requirements.
• It is a quick way of checking whether applicants possess minimum
requirements.
• It is a good method of assessing legibility of writing, spelling,
organizing information etc.
• It serves as a guideline in a subsequent interview.
• It helps for preparing personal files.

13
1. Employment Application Evaluation Cont..

Disadvantages:
• Criteria such as verbal ability, visible interest, visible health, appearance,
fluency of a language etc. can not be measured accurately.
• It is a difficult task to prepare a good application form that asks right
questions and evaluates responses objectively.
• Direct face to face meeting between the job applicant and the manager
who selects does not occur.

14
 2. Employment Tests
An employment test is an examination specially held to assess the degree of
the suitability of the job applicant for the job vacancy. It attempts to
determine how well the applicant is able to do the job for the vacancy exits.
Advantages
• Possibility of getting a large amount of information about the knowledge and
competencies of a person within a limited time
• Possibility of assessing a large number of applicants within a short time
• Less time consuming and less costly compared with interviews.
• Possibility to discriminate candidates who have similar competencies.
• It is possible to reveal applicants’ abilities and potentialities (rational thinking etc.) in
relatively better way, which are not usually possible to reveal from other selection
methods.
• It is possible to select candidates objectively and without prejudices.
15
2. Employment Tests Cont…

Disadvantages
• Not economical for a small number of candidates
• Motivation and mental state of the candidate at the time of the
examination will affect unfavorably and significantly on the results of
the examination.
• Not possible to examine some traits/abilities (such as verbal
communication ability, character, language fluency etc.) in a more
accurate way .
• Test may ignore the overall achievements, educational backgrounds
and job experiences of the candidate.

16
 Types of Employment Tests
• Intelligence Tests
• Intelligence is regarded as a special capability or competence person
possesses.
• An intelligence test focuses on general mental reasoning ability of a
person.
• Achievement Tests
Achievement tests attempt to measure the degree to which the candidate
possesses knowledge, skills and attitudes with regard to the relevant job.
• Subject competency test-involves a paper and pencil type examination designed
to evaluate the candidate’s knowledge and skills on a particular subject.
• A practical or work sample test-involves special equipment the candidate has to
use to perform duties of the job being concerned. It measures how well the
candidate can do a sample of actual duties on the job.

17
 Types of Employment Tests

• Aptitude Tests
Aptitude is the capability of a person to learn the duties and related
things of a particular job or acquire certain competencies relating to a
particular job. It includes talent and intelligence.
Aptitude tests measure general ability to learn or acquire a skill.
• Personality Tests
Personality is a unique blend of individual characteristics that affect
interaction with the environment and help define a person.
It is more likely that personality of a person differs from that of other
persons.
18
 3. Interviews

Interview is a face-to-face, oral and observational evaluation method of

appraising an applicant’s acceptability with regard to a certain job.
Advantages:
• It gives the interviewer with an opportunity to evaluate the candidate
in terms of self-presentation, verbal abilities, manners and sociability.
• It can fill information gaps and enable to clarify questionable
responses.
• It can be adopted to various types of employees.
• It allows a two-way communication.
• It is less costly for many organizations which do not follow
comprehensive selection procedure.
19
3. Interviews Cont…
Disadvantages:
• Possibility of occurrence of interviewer errors such as halo
effect, personnel prejudices ….
• Possibility of occurrence of interviewee errors such as
purposeful distorting answers, social desirable behavior …

20
 Types of Interviews

Bases that Use to Classify Interviews

1. Number of participants in the interview

2. Nature of the questions asked
3. Time of holding the interviews

21
Types of Interviews Cont…
Number of participants in the interview
• Individual interview - An individual interview is an interview which
consists of one interviewer and one interviewee.
• Panel interview - Panel interview is an interview which consists of more
than one interviewer.
The nature of questions asked
• Structured interview - A structured interview is an interview that
includes a predetermined set of questions that is addressed to each
applicant.
• Unstructured interview - An unstructured interview is an interview that
does not have a predetermined set of questions that is addressed to
each applicant. Different questions are asked from applicants depending
on their background and responses.
22
Types of Interviews Cont…
The nature of questions asked cont.
• Mixed interview - A mix interview is a blend of structured questions and
unstructured questions permitting to maximize advantages of both
structured interview and unstructured interview and minimize
disadvantages of both.
• Problem-solving interview - A problem-solving interview contains a set of
problems that the applicant will have to face actually or may have to face
on the job if he/ she is selected to that job. These problems are usually
critical incidents or mini cases which may hypothetical or actual.
• Stress interview - A stress interview contains questions that are asked
intentionally to annoy, embarrass or frustrate the applicant with the
purpose of examining the ability of the candidate to face such questions.
23
Types of Interviews Cont…
Time of holding the interviews
• First interview - First interview is called primary/ preliminary interview that
is usually held to determine the suitability of candidates in terms of
education and experience.
• Final/ post interview - After short listing candidates the next interview held
is called final interview. This interview contains questions specially relating
to the job duties to evaluate the suitability of candidate.
• Second interview/ intermediate interview - For selecting candidates for
managerial positions, holding one interview may not be sufficient to
determine the suitability of all candidates. Also when many candidates have
applied for job vacancies, need of holding more than one interview arises
usually.
24
 Problems with the Interviewer
• Halo effect
When an interviewer assesses a job applicant on several criteria the error
of halo effect occurs commonly. If the interviewer evaluates the applicant
high or low on all criteria, because of one criterion or two criteria that is
halo effect.
• Eg: A candidate who has an excellent academic record is given an
overall excellent evaluation without considering other criteria seriously.
• To give a female candidate a high evaluation on many criteria because
she is very attractive.

25
 Problems with the Interviewer
• Prejudices
Prejudices is an unfair preference or dislike for a candidate. It is
discrimination or bias.
• Eg: To give the highest marks to a candidate who has a very close
personal relationship with the interviewer.

26
 Problems with the Interviewer
• Premises of pseudo-sciences
A premise is something that the interviewer assumes as true and that
she/he uses it as a basis for making the decision of selection or
rejection. Pseudo-sciences refer to non sciences such as graphology ,
astrology, palmistry and physiognomy. The interviewer who uses his/ her
knowledge of these subjects in interviewing may do a grave injustice to
the interviewee.
• Eg: A candidate with a receding forehead is rejected because the
physiognomy categories such an individual as a criminal.

27
 Problems with the Interviewer
• Overemphasis on one criterion
A special or extra importance is given by the interviewer purposefully to
one criterion under this type of error. Hence other criteria are considered
with lesser importance unduly. Under this error, an applicant’s interview
performance is mainly evaluated on one criterion.
• Eg: The interviewers consider a candidate’s years of experience as the
critical criterion in selection.
• Leading question
A leading question is a question that is formed so as to give a hint or hints
about the desired or expected answer for the question. It leads to the
desired answer.
• Eg: “You are ready to work even under pressure , aren’t’ you?
28
 Problems with the Interviewer
• Interviewer domination
An interviewer tends to brag about his/ her organizational success or his/ her
own success rather than enhancing a two-way communication to get all the
needed information to determine the applicant's suitability.
• Eg: The interviewer takes much of time to exaggerate his abilities to the
interviewee, the interviewer spends much of the interview time to talk
about company plans and strategies.
• Snap Judgment
The interviewer may tend to make his/ her decision of selecting or rejecting
early in the interview and then merely search for information to support that
decision.

29
 Problems with the Interviewee

• Inability of the interviewee to listen

• May distort purposefully his/ her answers
• Attempt s to behave in a pretended manner which is socially desirable
• Nervous and fearful
• Talking too much
• Boasting

30
 Problems with the Method of Interviewing

• Poor designed place, time, plan

• Poor criteria
• Non availability of a systematic process
• Poor evaluation procedure

31
 4. Background Investigation

This is a special investigation to reveal the real background of the job

applicant. Main purpose of the background investigation is to know what
type of a person the applicant was.
Assessing employment, finance, character and academic histories of
applicants.
Advantages
• Possibility of knowing history of the candidates.
• Possibility of assessing honesty of candidates.
Disadvantages
• Less reliability, as it is difficult to persuade a referee to give a frank opinion.

32
 Types of Background Investigation

Type Objective Type of Reference

Academic To investigate academic history Head of the relevant educational institute/ professor
of the job applicant of the relevant subject or a senior academic

Employment To investigate employment Relevant employer or employers

history of the job applicant

Personal/ Individual To investigate the character of the Head of the relevant educational institute,
job applicant Gramasevaka, Responsible government officer of
higher rank, Justice of the Peace, Incumbent of the
relevant temple

Financial To investigate the financial state of Relevant bank/ banks/ financial institutes( with the
the job applicant consent of the applicant)

33
 5. Medical Tests
Assessing whether the applicants are physically fit for the job or not.
Main purpose – to get accurate information about the health condition of the job
candidate being considered for the job vacancy.
Advantages
• It is possible to evaluate whether the job candidate can handle the mental and
physical stress of the job.
• Safeguarding the health of current employees of the organization through the
detection of contagious/ communicable diseases.
• Protect against the damages to the properties of the organization and unnecessary
medical and insurance claims and compensation.
• Providing data about the current health condition of the candidate as a basis for
future health guidance.
Disadvantages
• High cost of conducting medical tests.
34
 6. Assessment Centre

Assessment centre is a special programme formulated to select candidates

for specially managerial vacancies through the use of several techniques of
evaluation.
It lasts for one day or two days or several days using multiple methods of
selection techniques and multiple assessors to determine the suitability of
job applicants for particular job vacancies.
Advantages
• Higher degree of validity
Disadvantages
• Higher cost

35
A Typical Selection Process

36
 Group No.14
Proposing a better Interview Strategy for SLTC: Job category of
Lecturer
• How do you design and implement an effective interview strategy to
ensure that the selection process accurately assesses candidates'
skills, competencies, and cultural fit with the organization?
• What criteria do you use for selecting appropriate assessment tools
(e.g., tests) to evaluate candidates during the hiring process?
• In what ways do you incorporate diversity and inclusion
considerations into the selection process to ensure a fair and
unbiased evaluation of candidates?

We look forward to hearing from you in the coming week.

37
 Group No. 01
• How do technology and automation use in the selection process, such as
applicant tracking systems or AI-driven tools, to streamline and enhance
the efficiency of candidate screening while maintaining a human-centric
approach?
• In a dynamic business environment, how to ensure that the selection
process is adaptable to changing organizational needs and industry
trends? Can you provide examples of how different companies have
adjusted their approach to align with evolving business requirements?

We look forward to hearing from you in the coming week.

38
 Q&A

Thank You

39
BBM2316/BBM1307
Human Resource Management
By Saradhika Manjaree
Pay Management

2
 Session Objectives

• At the end of this session students should be able to

• Define the meaning of the pay management

• Identify the factors that affect pay

• Discuss the significance of pay management

• Discuss the equity issues in pay management

• Discuss different types of employee movements

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

 What is Pay Management?
• Pay?
A basic reward an employee receives in return to his/her contribution/
service rendered for the organization where he/she works. Pay can be called
wage or salary.

• Wage – the basic reward paid to a non managerial employee in exchange for work
he/she does for the organization.
• Salary - the basic reward paid to a managerial employee in exchange for work
he/she does for the organization.

5
 Factors affecting Pay

• Government legal requirements

• Trade unions
• Cost of living
• Demand and supply
• Productivity
• Financial ability of the organization
• Competitive pays
• Other factors

6
 Pay Management Cont.

• Reward
Reward is a general term and can be used for pay, incentive or benefit.
Rewards include wages, salaries, incentives and welfare facilities.

Rewards

Incentives
Pays (Wages and Salaries) Benefits (Welfare)
(Variable Pays)

7
 Pay Management Cont.
• Incentive
Incentive/ Payment by results/ Variable pay – is a type of reward that is paid
to encourage the employee to increase his/her productivity. Incentives are
paid in addition to wages and salaries and depend on productivity, sales,
profit or cost reduction efforts.

• Benefit
Benefit/Welfare – is an indirect reward paid by the organization to the
employee because he/she is a member of the organization. Includes medical,
transport, educational, recreational and other facilities and comforts.

8
 Pay Management Cont.
• Pay Management is the HRM function that deals with development,
implementation and maintenance of a base pay system that is fair.
• It involves the aggregate of all the activities involved in developing,
implementing and maintaining a base pay system that is fair.
• It is the HRM function that deals with development, implementation and
maintenance of a base pay system that adheres to external equity, internal
equity and absolute equity.

Base Pay – Basic wage or salary paid to the employee and it does not
include allowances and other payments.

9
 Objectives of Pay Management

• To attract suitably qualified persons to the organisation.

• To retain the most appropriate employees within the organisation.
• To motivate employees.
• To comply with legal requirements.
• To ensure equity (internal equity, external equity and absolute equity).
• To control employee cost.

10
 Significance of Pay Management

• It contributes (performed soundly) to the organizational success directly.

• Employees perceive pay as an income and they attempt to increase it.
• Employers perceive pay as an expense and they attempt to control/minimize it.
• In such a context possibility of occurring conflicts is high.
• A sound Pay Management is essential for successful functioning of the
organization by avoiding or minimizing these conflicts.
• To avoid/eradicate pay dissatisfaction.
• Unfavourable consequences of pay dissatisfaction
Increase in employee absenteeism
Increase in employee turnover
Deterioration of employee health etc

11
 Equity Issue of Pay Management
Relative Equity
• Involves with two types internal equity and external equity.
• Internal equity refers to that pay should be related to the relative worth of jobs.
• Similar jobs get similar pay while different jobs get different pay.
• External equity refers to that to pay an employee at a rate equal to the wage/salary that
similar employees receive in other organizations.
• Wage/salary for a certain job is to be equal to that of other similar jobs in other organisations.
Absolute Equity
• Is that the wage/salary should be enough to meet normal expenses of the
employee (at least to meet physiological and security needs).

12
 Employee
Movements

13
 What are Employee Movements?
• Employee movements refer to the changes that occur with regard to the
employment of employees. These changes include
• Promotions
• Transfers
• Layoffs
• Demotions
• Dismissals
• Terminations
• Retrenchments
• Retirements

14
 Promotions
• A promotion is the appointment of an employee who is currently working in
the organization to a job that is higher/ greater than the job being
performed by him/ her.
• It is an advancement of an employee to a better job.
• Better-in terms of greater responsibilities, more authority, more prestige,
more rank, better job terms and conditions , greater skills, better job title,
and increased rate of pay or salary.

15
 Promotions Cont.
Importance of Promotions
• It is more likely that employees increase their productivity in order to get
promotions.
• When employees, who expect career development, perceive that there are
promotion opportunities withithey become more happy and
hopeful/optimistic increasing loyaltyn the organization to the organization.
• To get more contribution from younger employees who expect to get
promoted.
• To attract suitability qualified applicants for the employment in the
organization
• Reduce employee absenteeism and employee turnover.
16
 Promotions Cont.
Types of Promotions
Upgrading
• It is the movement of the employee from one grade to a higher grade
• Ex: Mr. Ashoka is a clerk(grade II) and he is promoted to the post of clerk (grade I).
• Clerk Grade I – LKR 5 8,345.00
• Clerk Grade II - LKR 48,685.00

Up classing
• It is the movement of the employee from one class to a higher class
• Ex: Mrs. Chandanee is an administrative officer ( class II-grade I) in the Sri Lanka
administrative service is promoted as an administrative officer (class I).

17
 Promotions Cont.
Types of Promotions Cont.
Same functional field
• Promotion within same functional field involves moving up an employee
within the same functional field.
• Ex: Madushika is a HR executive and is promoted as an Assistant Human
Resource Manager. The promotion occurs in HRM functional field.

Different functional field

• Promotion to different functional field involves moving an employee from
one functional field to another functional field of the organizational
management.
• Ex: Mr. Priyalal has worked as a Sales Executive in the marketing function and
is promoted to the post of Assistant Accounts Manager in finance function.
18
 Promotions Cont.
Methods of Promoting Employees
By Management Decision (Close Method)
• Under this method, an employee is selected for a promotion on the basis of
information already known by the management of the organization.
• The decision of promotion is made secretly.
• Promotion opportunity is not published.

By Internal Advertisement (Open Method)

• This method involves advertising vacancies through the notice board or
circulars or internal magazines, papers or news letters so that every possible
candidate will come to know the vacancies to be filled and all the interested
and qualified candidates can apply.
19
 Transfers
• A transfer is the moving of an employee within the same job/ class/ grade.
• Within the same class/ grade,
• From one job to another job or
• From one place to another place or
• From one time to another time or
• From office to field
the change of employment of the employee can be identified as a transfer.
• Generally, transfers can be done in an organization.
• However, transfers are not necessary or obligatory.
• Transfers must not be done on an imitation basis but on the needs of the
organization.

20
 Transfers Cont.
Types of Transfers
Productive Transfers
• When an organization has a department or section where there is a surplus
of employees and a department or section as well where there is a shortage
of employees, productive transfers can be done.
Policy Oriented Transfers
• If an organization gives a transfer to an employee as a policy , that transfer is
called a policy oriented transfer.
Disciplinary Oriented Transfer
• If an employee is transferred as a disciplinary action/punishment that
transfer is a disciplinary oriented transfer.

21
 Transfers Cont.
Types of Transfers Cont.
Remedial Transfers
• Due to wrong selection and /or wrong placement if an employee is unable
to perform duties of a job successfully, he/ she can be transferred to a job
which he/ she can perform satisfactory called remedial transfer.
Vacant Transfers
• When an employee is given a transfer to a job that is vacant, that transfer is
called a vacant transfer.
Shift Transfer
• Under a shift transfer it happens that an employee is moved from one
working shift to another in order to perform works of similar nature.

22
 Transfers Cont.
Types of Transfers Cont.
Versatility Transfers
• It means the capability of an employee to do many activities.
• An employee who is versatile has many skills and is able to perform
different duties within an organization.
• Ex: Job Rotation
Interest Oriented Transfers
• A transfer that is given on a real need of an employee is called an interested
oriented transfer.
Problem Oriented Transfers
• Problem oriented transfers are the transfers which are given as a solution
of conflicts which occur among employees.

23
 Layoffs
• Layoff is a temporary stoppage of the employment of an employee due to a
reason or reasons which is/ are generally not controllable by the
management of the organization.
Characteristics of Employee Layoffs
• The employer/organization must have an inability or incapability to retain
further some employees on their employments.
• Tentative stoppage of the employment or separation of employee from the
job.
• Intention of calling back in the foreseeable future.

24
 Layoffs Cont.
Characteristics of Employee Layoffs Cont.
• Due to following reasons which are often uncontrollable by the employer
layoffs will have to be done.
• Due to seasonal fluctuations in demand for products
• Shortage of main raw materials
• Accumulation of stocks
• Breakdown of a main machine/s
• Natural causes such as floods and droughts etc.
• Generally, employer-employee relationship is not terminated permanently.
What happens is a temporary separation.

25
 Layoffs Cont.
Methods of Layoffs

Arbitrary Method/Bumping
• Laying off employees randomly by the employer/management is meant by
this method.
• There is not any rationale for selecting employees for the purpose of layoffs.
• It may happen that the manager does layoff an employee whom he/she
does not like and does not do layoff an employee who has a personal
relationship with him/her.
• As this method may create a lot of problems it is not recommended though
it has an advantage that less time is required to do layoffs.

26
 Layoffs Cont.
Methods of Layoffs Cont.
LIFO
• LIFO stands for Last-In-First-Out.
• It means doing first layoff of the employee who had been hired last.
FIFO
• FIFO stands for First-In-First-Out.
• It means doing first layoff of the employee who had been hired first.
Agent Method
• Under this method the relevant organization does not do layoff and re-hiring
casual employees.
• Layoff and hiring are done by a separate organization on behalf of the organization
under a certain fee.
• This is called outsourcing of casual labor.
27
 Layoffs Cont.
Methods of Layoffs Cont.
Formal Method
• Doing layoffs according to a certainly and clearly formulated scheme that
consists of policy, procedure and rules is called formal method which is the
method to be recommended for an organization that really wants to
manage layoffs properly.

28
 Other Types of Employee Movements
Demotions
• A demotion is the appointment of an employee who is currently working in
the organization to a job that is lower than the job being performed by
him/her.
Dismissals
• A dismissal is the moving of an employee out of the organization
permanently on disciplinary ground.
Terminations
• A termination is the complete end of service of an employee by the
employer.
• Though dismissal is also a type of terminations, under this section the
moving of employees out of the organization completely is referred to as
terminations. 29
 Other Types of Employee Movements
Retrenchments
• Retrenchment is a form of separation and it can be defined as the
permanent termination of the employment of an employee or employees
due to a surplus of employees within the organization.
Retirements
• Retirement which is also a form of employee separation, involves leaving an
employee from the organization after he/she has reached the age at which
a pension can be obtained.

30
 Q&A

Thank You

31
BBM2316/BBM1307-Human Resource
Management
By Saradhika Manjaree
09. Employee Discipline
Management

2
 Session Objectives

• Define the meaning of employee discipline management

• Explain the importance of employee discipline management

• Describe the types of discipline

• Analyze the steps and associated concepts of the employee discipline

management framework

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

 What is Discipline?
• Discipline is the practice of making people obey strict rules of behavior and
punishing them when they do not obey them
Collins Birmingham University English language Dictionary
• Discipline involves controlling work and behavior of employees in
compliance with all the relevant rules and regulations in order to achieve
organizational goals and objectives
H.H.D.N.P. Opatha
• Management action to encourage compliance with organizational standards
Werther and Davis
• Form of training that enforces organizational rules
Mathis and Jackson

5
What is Discipline? Cont.
Based on above definitions the term discipline involves
• A condition where employees conduct themselves in accordance with rules
and standards of acceptable behavior
• To make employees obey rules of behavior
• To punish employees when they do not obey rules of behavior
• Managerial action encouraging employees to comply with standards of the
organization
• A form of training to enforce organizational rules

6
 What is Employee Discipline Management (EDM)?

• EDM is defined as a systematic process of controlling and influencing all

employees in an organization to achieve and maintain rules of behaviour in
order to accomplish organizational goals and objectives.
• It is viewed as a development, implementation and maintenance of an
appropriate discipline system in the organization in order to accomplish its
goals.
H.H.D.N.P. Opatha

7
 Importance of Disciplinary Management

• To reduce conflicts and confusions

• To control and manage human resources in an orderly manner
• To ensure the employee’s behavior in accordance with performance
standards, rules and regulations of the organization
• To achieve organizational goals and objectives

8
 Types of Discipline

Preventive
Discipline
Corrective

9
Types of Discipline Cont.

Preventive Discipline
• Preventive discipline is action taken to encourage employees to follow
standards and rules, so that infractions do not occur.
• The basic objective is to encourage employees’ self discipline.

Corrective Discipline
• Corrective discipline is an action that follows violation of a rule and it seeks
to discourage further violations. It involves corrective actions which
discourage repetition of rule violations.
• Typically, the corrective action is a penalty of some type and is called a
disciplinary action.
10
 A Framework for EDM
1. EDM objectives and policy

2. Establishment of rules of behaviour and rationale for each rule

3. Specify penalties/ sanctions and authorities of sanctions

4. Communicate all

5. Monitoring rule violation

Serious Non- serious

6. Disciplinary investigation 6. Informal talk/Counselling

7. Determine the sanction and implement it 7. Progressive discipline

8. Review and renewal

11
 1. EDM Objectives and Policy
• As the first step what objectives to be achieved through EDM should be
determined along with a clear policy statement.
• EDM objectives – Favourable targets to be achieved in future in relation to
managing employee discipline.
Ex:
• To develop self control among all employees
• To encourage employees to meet established rules of behaviour
• To protect the organization from illegal and harmful actions of employees
• Disciplinary Policy involves clear general guidelines to be followed by
managers in managing employee discipline.

12
2. Establishment of Rules of Behaviour and Rationale for Each Rule
• As the second step rules of behaviour every employee should adhere to
must be established along with the rationale for each rule.
• Rules – the official instructions in respect of what employees must and are
allowed to do and what they are not allowed to do.

Ex:
• Rule 01 – During the working hours or reporting for work being under the influence
of liquor and/or drugs is strictly prohibited.
• Reason: To be under the influence of liquor may cause damages to the properties of
the organization and other employees , confrontations with other people at work,
make wrong decisions and many other evil consequences.

13
3. Specify Penalties/Sanctions and Authorities of Sanctions
• This step involves specifying penalties for rule violations and authorities
who may impose these penalties to the employees who have violated the
rules.
• Penalties/Sanctions (Disciplinary Actions) refer to the actions that follow
rule violations. These are inflicted due to a violation of any rule, which is an
offense.
Types of Penalties
1.Oral warning
2.Written warning
3.Final written warning
4.Fining

14
3. Specify Penalties/Sanctions and Authorities of Sanctions

Types of Penalties Cont.

5.Suspension of work for two days without pay
6.Suspension of work for four-days without pay
7.Suspension of work for one week without pay
8.Suspension of work for one month without pay
9.Stoppage of salary increment
10.Stoppage of applying for a promotion
11.Transfer to a difficult area/ unpleasant work
12.Reduction of seniority
13.Demotion
14.Termination of employment/dismissal
15
3. Specify Penalties/Sanctions and Authorities of Sanctions
It is also important to specify which level of management has the authority to
decide the disciplinary action for rule violation.
• Ex:
Disciplinary Action Management Level
1. Oral warning Immediate superior of the offender
2. Written warning Immediate superior of the offender
3. Final written warning Immediate superior and Immediate superior’s
superior
4. Suspension of work without pay for up to Immediate superior and Immediate superior’
one week superior
5. Suspension of work without pay for more Department Manager & HR Manager
than one week, stoppage of pay increment and
similar penalties
6. Transfer, Demotion and Dismissal HR Manager and Top Management
16
 4. Communicate all
• This step involves making all employees aware and understood about EDM
objectives, policy, rules, their rationales, penalties and authorities of
penalties.
• The purpose of this step is to create a right and adequate understanding in
respect of employee discipline.

17
 5. Monitoring Rule Violations
• Monitoring refers to assessing whether actual behaviour of employees in
the organization is in compliance with the desired behaviour of employees,
receiving any deviations or rule violations and determining whether these
violations are serious or non serious.
• Some common sources that draw the attention of relevant management to
the rule violations are
• Observation
• Complaints
• Grievances
• Performance Evaluation etc.

18
 5. Monitoring Rule Violations
• Having come to know any rule violation, it is important for the relevant
manager to know decide whether the violation is serious or non serious.
Serious Offences
• If a very important rule has been violated it is a serious offence.
• Serious offences are offences which have a greater negative impact on
organizational effectiveness and productivity.
Non - Serious Offences
• If the rule violated is an unimportant one (not a very important one) the
offence is non serious.
• Non serious offences are offences which do not have a greater degree of
negative impact on organizational effectiveness and productivity.

19
A Case of a Serious Rule Violation

20
 6. Disciplinary Investigation/ Domestic Inquiry

• When it happens or seems a case of serious rule violation it generally

requires an investigation to determine whether there is a clear rule
violation in fact. This investigation is called disciplinary investigation or
domestic inquiry.
Steps of the Disciplinary Investigation
1. To do a preliminary investigation
2. To suspend the service pending enquiry
3. To issue a charge sheet
4. To obtain letter of explanation and make decisions based on it
5. To conduct a formal inquiry

21
 6. Disciplinary Investigation/ Domestic Inquiry

i. To do a preliminary investigation
• Gather basic information about the error and the person.
• Collect evidences against the error.
• This is not an in-depth investigation, but just collect information.
• The objective of a preliminary investigation is to ascertain whether there is
a sufficient amount of evidence to support rule violation.
• This investigation should be done by an experienced manager in a very
shorter period of time generally within one week.

22
 6. Disciplinary Investigation/ Domestic Inquiry

ii. To suspend the service pending enquiry

• In case of a very serious rule violation, which leads to dismissal of the
employee if proven, a need for immediate suspension of the suspected
employee’s service arises.
• Suspension will become needed if one or two or all of the following is/ are
met.
• If the rule violation is serious
• If the suspected employee’s presence at work will disturb the on-going investigation
activities
• If the suspected employee may be violent or threaten witnesses or change or hide or
destroy relevant documents.
• Generally, the suspension period may be two weeks and it may go even up
to the end of the disciplinary investigation

23
 6. Disciplinary Investigation/ Domestic Inquiry

iii. To issue a charge sheet

• Issue a special sheet to the employees mentioning the offences undertaken
with provable evidence. Alternatively charge sheet is called “Show Cause
Letter”.
• The charge sheet should
• Be written
• Be clear and brief
• Describe the rule violation
• Indicate accusations for each rule violation
• Ask an explanation in writing for each rule violation within a stipulated time period
• Indicate how and to whom the letter of explanation should be sent
• Be sent to accused who is on suspension through the registered post. Otherwise , be handed
over to the employee. In here the signature of the accused should be needed so as to ensure the
receipt of the charge sheet by the accused in order to avoid a situation where the suspected
denies the receipt of the charge sheet.
24
 6. Disciplinary Investigation/ Domestic Inquiry

iii. To issue a charge sheet

• The charge sheet should
• Indicate directly that if the employee fails to send the letter of explanation within the prescribed
time it will assume that she/he has no answer to give and guilty of all the accusations.

25
 6. Disciplinary Investigation/ Domestic Inquiry

iv. To obtain letter of explanation and make decisions based on it

• Depending on the nature of the letter of explanation sent by the accused,
the management has to make decisions regarding the continuity of the
investigation.
• There are five main possible natures of the letter of explanation.
• The accused accept that he/ she is guilty of all the charges
• The accused denies all the charges with acceptable reasons
• The accused denies all the charges with unacceptable reasons
• The accused accepts that he/ she is guilty of some charges and denies other charges
• The accused does not reply

26
 6. Disciplinary Investigation/ Domestic Inquiry

v. To conduct a formal inquiry

• No action can be taken against any employee without giving a proper
chance of defense.
• Accordingly, in this inquiry he/she has the right of giving the evidences.
• Therefore, conducting a formal inquiry is very essential.
• Disciplinary board will handle the formal inquiry.
• This allows the employee to accept or reject the offence.

27
 7. Determine the penalty/sanction and implementation

• This step involves determining the sanction/penalty/disciplinary action

against the employee who has found to be guilty by the disciplinary
investigation.
• The degree of the disciplinary action should be equal to the degree of the
offence.

28
A Case of a Non - Serious Rule Violation

29
 7. Informal talk/Counselling

• In case of a non- serious offence (violation of a rule that is not very

important) for the first time (or may be up to second time), a counseling
approach is recommended instead of punitive approach.
• In simple counselling approach involves an informal talk.
Examples of non serious offences
• Late attendance
• Failure to inform absence
• Wearing of untidy or dirty uniforms/ clothes whilst on job
• Disturbance to peers/ co-employees etc.

30
 7. Informal talk/Counselling
Approaches that Managers can use for Informal Talk
Sandwich Model
• This approach does not involve a discussion and it is more one- way
communication.
• Sandwich approach refers to that a corrective comment is sandwiched between
two positive comments in order to make the corrective comment more
acceptable.
• This can be used to an employee whose performance is well above average or
excellent.
Ex: Mr. X is the HR manager of Sri Lankan Garments Company and Mr. Y is the clerk in this HR
Department. Mr. Y’s work is almost perfect but he is observed to have come late from lunch
for two times. The HR manager can have an informal talk whereby he can state
“Your work is almost perfect (a positive comment) but your recent late return from lunch
disrupts our department work (negative/corrective comment). Otherwise, your performance is
the best in my department (positive comment).”
31
 7. Informal talk/Counselling

Participative/ Direct approach

This approach involves the following steps
1. Manager informally invites the offending employee to talk about an
important thing
2. Manager informs the rule violation specially with date, time , place etc.
3. Manger listens to version/ response of the offending employee
4. Both attempt to find out what is causing the problem of discipline
5. Both discuss to find a solution and implement it

32
 8. Progressive Discipline

• Progressive discipline is a discipline program, which progresses from the

least severe to the most severe in terms of disciplinary actions/penalties.
• This involves stronger penalties for repeated offences.
• The purpose is to give an employee an opportunity for self correction
before more serious penalties are applied.

33
 8. Progressive Discipline

A Typical Progressive Discipline Program

Rule: Every worker must not leave workplace during work time without
permission of his/ her superior in- charge.

34
 9. Review and Renewal

• It is recommended to consider the following questions for the purpose of

review and renewal of disciplinary programmes.
• Were inflicted disciplinary actions implemented properly?
• Were they accepted by the relevant offender? If not, why?
• What are the problems being developed or developed due to disciplinary decisions?
• What are the attitudes of the employees including the offenders who have been
penalized about rules, reasons behind rules, penalties and discipline administration?
etc.

35
 The Hot Stove Rule
This rule states that any disciplinary action must have features similar to the
consequences a person suffers from touching a hot stove.

Characteristics of Hot Stove Rule

Warning
• Warning is given as not to violate organizational rules, like on the hot stove
it says, “Do not touch”.
• When the staff is warned with rules, if they violated the rules, they should
be punished.
36
 The Hot Stove Rule
Immediacy
• There should not be a considerable time gap between the violation of rules and the
punishments.
• A penalty must be given immediately when rule violation occurs.
• Otherwise, the employee may forget the error and reduce the mental tendency to accept
the penalty.

Consistency
• Penalty must match with the offence.
• For a small offence, a small penalty is given while for a large rule violation a major penalty
must be given.

No Personal Basis
• Whoever the person violates the rules, a penalty should be given.
• Without considering the category of the employee status, social background whoever
violates the rules should be punished.
37
 Q&A

Thank You

38
BMG 2307 -Human Resource Management
By Saradhika Manjaree
Grievance Handling
 Session Objectives

• At the end of this session students should be able to

• Define the meaning of the pay management

• Identify the factors that affect pay

• Discuss the significance of pay management

• Discuss the equity issues in pay management

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

 Session Objectives
At the end of this session students should be able to
• Define the meaning of grievance handling
• Explain the importance of grievance handling
• Examine the causes of grievances
• Discuss the ways of identifying employee grievances
• Discuss the strategies that can be used to solve grievances
• Discuss the methods of handling grievances

5
 What is a Grievance?
• Grievance is a term that involves worker discontent or dissatisfaction having the
following features:
• It may be real based on the actual injustice or imagined based on the assumed injustice,
which has not occurred from the perception of management.
• It may be expressed distinctly or not.
• It may be informal (verbal) or formal (written).
• It may arise out of something relating to employment/organization/work/job.
• It may be individual or collective: An employee or a group of employees feels/feel or
believes/believe that an injustice has been done by a manager or several managers in the
organization.
• The grievant(s) or a representative on behalf of the grievant(s) may make it.
• “Grievance is defined as any discontent, dissatisfaction, arising from a feeling or
a belief of injustice felt by an employee or a group of employees in connection
with the work environment.”

6
 What is Grievance Handling?

• Grievance handling refers to accepting and solving grievances effectively

(in order to maintain good Labour-Management Relationships and
employee motivation) and efficiently (minimizing wastage of resources
including time of handling).

7
 Importance of Grievance Handling

Grievance of one Grievance of group of Anti-attitudes

Industrial disputes
employee employees towards management

Impairment of organizational
success and progress of success

8
 Causes of Grievances

1. Causes relating to the job

i. The employee has no capability of performing relevant duties and responsibilities
of the job.
ii. The employee has been entrusted to perform a duty that is not in the given job
description.
iii. The employee is placed on a job that does not match with the employee’s
knowledge and skills.
iv. The training given to perform the job is not adequate or incorrect.
v. The employee has assigned too many duties that he/she could not handle.

9
 Causes of Grievances

2. Causes relating to the working conditions

i. Changing the working time or place which the employee does not like.
ii. Work hazards and unpleasant working environment.
iii. Poor relationship between the superior and the employee.
iv. Leadership style of the superior.
v. Non availability of necessary materials, equipment and other things to perform
the job successfully.

10
 Causes of Grievances

3. Causes relating to personnel management decisions such as policies,

procedures and practices
i. Employee wages/salaries.
ii. Incentives.
iii. Promotions.
iv. Transfers.
v. Layoffs.
vi. Training and development.
vii. Performance evaluation.
viii. Leave.
ix. Discipline.
x. Recruitment and selection.
xi. Unfavourable attitudes towards trade unions.

11
 Causes of Grievances

4. Causes relating to alleged violations

i. The management violates the terms of the collective agreement.
ii. Working/Decision making against past practices.
iii. Making unfair/ strong disciplinary actions for violation of disciplinary rules.
iv. Ignoring management responsibilities.

12
 Causes of Grievances

5. Causes relating to inappropriate individual behavior

i. The employee is over ambitious.
ii. The employee has unrealistic self esteem.
iii. The employee has unpractical attitudes of the life.
iv. The employee has unbearable/ unnecessary life-styles.
v. The employee has illegal involvements.

13
 Identifying Employee Grievances
1. Exit interview
• Interview employees who leave the organization to recognize the problem/s
behind leaving the organization.
• This may help to recognize serious grievances.

2. Attitude surveys
• Under this method interviews or questionnaires can be used to test the attitudes
and job satisfaction of current employees.
• It will measure the satisfaction level which helps to identify the hidden
grievances.

14
 Identifying Employee Grievances
3. Complaints /Grievance box
• It is possible to install complaints boxes at the suitable places within the
organization for the purpose of obtaining complaints from the employees.
• Anonymous or named complaints can be expected to be put into these boxes.
• These boxes should be different from the boxes which are for obtaining named
suggestions to improve the works for which rewards are available.

4. Observation
• The manager can observe directly or indirectly the behaviour of the subordinates
to find out whether there are unusual ones.
• There may be subordinates who are not willing to express their grievances.
• These grievances may be evidenced by symptoms such as insubordination,
tardiness, moodiness, or a decline in quality of work or quantity of work.
15
 Strategies to Solve Grievances
1. Allow to talk
• The manager can give a sufficient time to the employee to tell his/ her grievance.
• After talking to the superior, perhaps the employee gets a considerable relief by
expressing his/ her feelings rather than suppressing the grievance.
• In this context, the manager must have a very good ability of listening.

2. Escape from the situation

• Management neglects the situation and allows the problem to be settled by the
time.
• Transferring the grievant from the current working environment to another
environment may be a cause of reducing his/ her mental frustration.

16
Strategies to Solve Grievances Cont.
3. Allow to get over/blow up
• The employee who is genuinely having a grievance might lose his/ her temper
and become very angry before the manager.
• The manager can allow the grievant to blow up so that he/ she can release
tension by arguing, scolding and being noisy.
• Tactically this method may be appropriate rather than having a serious conflict
between the superior and the subordinate.
4. Give in
• Sometimes the manager can acknowledge that he/she is defeated or mistaken
to reduce the mental frustration of the grievant( if manager has done a mistake
or misunderstood).
• Admitting superior's mistake is a principle of good grievance handling.

17
Strategies to Solve Grievances Cont.
5. Give more responsible tasks than before
• The manager may entrust the grievant with a more responsibility duty in
order to create an attitude that the boss has still the trust and appreciation
about the grievant.
6. Allow to go aside
• If the employee goes aside without facing the superior directly the superior
can tolerate that behaviour as he/ she is suffering from a grievance.
Ex: If salutation(good morning) was a behaviour exhibited by the employee
before he/ she became a grievant, the manager should not expect it now(
until the grievance is settled).

18
Strategies to Solve Grievances Cont.
7. Share with the grievant
• If the manager is not in a position of giving a solution that is to the
satisfaction of the grievant, he/ she can sincerely state the inability and
share the suffering with the grievant to the possible extent.
Ex: An employee is suffering from a grievance owing to serious illness of one
of her sisters. This is a cause relating to the personal life of the employee. The
superior can sympathize on her and engage in such behaviours as asking the
information about the well-being of her sister and herself, giving some
suggestions about the availability of medical facilities.

19
 Methods of Handling Grievances

• Formal Grievance Settlement Procedure

• Open-door policy
• Quasi method
• Committee approach
• Counseling
• Ombudsman
• Mixed method

20
 1. Formal Grievance Settlement Procedure
Grievance Settlement Procedure specifies how and to whom employees can
raise a grievance, spell outs the stages through which a grievance should go,
and spell outs the right of the representation on behalf of the grievant
(White, 1989).
Advantages
• Most grievances seriously disturb the employees. This may affect their motivation,
productivity and their willingness to cooperate with the organization. If an explosive
situation develops, this can be promptly attended to if a grievance handling
procedure is already in existence.
• It helps in preventing larger problems (like strikes) from occurring in future by solving
smaller problems early.
• Closed grievances will convert into open grievances. Hence, it will be possible for the
management to know grievances and activate soon to settle them.

21
1. Formal Grievance Settlement Procedure Cont.

Advantages
• As the decision made by a manager of a lower level is subject to review by a
manager of higher level in handling grievances, it requires managers to be more
careful when making decisions with regards to grievance handling.
• This method is an assurance about that the organizational management will act
according to justice and fairness.
• Facilitates to make a favourable employee-employer relationship etc.

22
1. Formal Grievance Settlement Procedure Cont.

An example of Grievance Settlement Procedure in a unionized organization

Arbitration

7 days General
Trade Union Leader
Manager/CEO
4 days
Trade Union Human Resource
Representative Manager
2 days
Immediate
Grievant
Superior’s Superior
24 hours
Grievant Immediate Superior

Chapter 14 23
 2. Open-door policy
• This method allows every employee to see the CEO of the organization with
grievance to settle.
• The door of the chief manager is open to any employee who is suffering
from a grievance.
• The chief manager is ready to listen to the grievant and attempts to redress
it.

24
 3. Quasi method

• HRM specialist or a third party represents the grievant in this method.

• The specialist attempts to find a solution for the grievance to a certain
degree of satisfaction of the grievant.
• As a specialist involves in handling the grievance a fairer treatment is
expected.
• Relatively cost may be higher.

25
 4. Committee approach
• A separate committee consisting of several mangers is appointed for the
purpose of settlement of employee grievances.
• As several managers involve, more acceptable and fair settlement can be
expected.
• The time and other costs are relatively higher.

26
 5. Counselling
• This is a two-way process.
• Counselor will provide guidelines to the grievant so that he/she will
be able to find a solution to settle the grievance.
• This method is more appropriate for settling grievances which arise
from reasons relating to the personal life of the employees.
• This has a higher cost but the benefits will exceed the cost if
administered properly.

27
 6. Use of an Ombudsman

• A special respected, neutral person is appointed to cope with grievances.

• He/she will accept grievances and facilitate towards settling the grievances.
• He/she investigates grievances and recommends actions to the
management.

28
 7. Mixed method

• Generally, a HRM specialist and a grievance settlement committee

will be appointed for handling grievances.
• A main duty of HRM specialist (Grievance Handling) is to receive
grievances in writing from employees and forward them with his/her
observations to the grievance settlement committee.
• Decisions to solve grievance will be made by the committee.

29
 Group No.07
1. In the era of social media and online activism, how should companies
respond to grievances that gain public attention, and what communication
strategies can be employed to manage reputational risks while addressing
employee concerns?
2. Read the case study below and provide suitable strategies to solve the
problem.
Case Study: Proactive Grievance Handling
XYZ Tech Solutions is a rapidly growing technology company with a diverse
workforce and a fast-paced work environment. With employees working both
on-site and remotely, the company recognizes the need for an effective
grievance handling system to maintain a positive workplace culture. Over the
past few months, the HR department noticed a gradual increase in informal
complaints related to workload, communication gaps, and perceived
favoritism in project assignments. The management is concerned that these
issues, if not addressed promptly, could lead to more formal grievances and
negatively impact employee morale and productivity.
 Group No.16

1. In the context of contemporary grievance handling, how can

organizations effectively use technology and digital platforms to
streamline the grievance reporting process and ensure timely
resolution for employees?

2. Considering the diverse and inclusive nature of modern workplaces,

what strategies and best practices can HR professionals adopt to
address grievances in a culturally sensitive manner, promoting a
positive and equitable work environment?
 Q&A

Thank You

32
BBM2316/BBM1307
Human Resource Management
By Saradhika Manjaree
Performance
Evaluation

2
 Session Objectives

At the end of this session students should be able to

• Define the meaning of the performance evaluation

• Discuss the importance of performance evaluation

• Analyze the Employee Performance Evaluation Process

• Discuss the PE methods

• Discuss the problems with the evaluator

3
 HRM Model
Performance
Evaluation

Pay Management
Objectives
Training and
1. Procurement
Development
Job Design of right
people in the
Strategic Goals Generic Goals
Employee
right way 1. Improvement 1. To generate
Movement
2. Retention of of employee and retain an
Management of the productivity appropriate and
Incentives appropriate 2. Employee contented
Hiring and employees development employee force
Job HR Recruitment Selection Welfare
Induction 3. Employee 3. Enhancement which gives the
Analysis Planning Administration
Commitment of the quality maximum
Health and Safety 4. Employee of work life individual
Administration Motivation 4. Ensuring legal contribution to
5. Control of compliance organizational
Discipline success
Management Employment
Costs
Grievance Handling

Labor Relations and

Management

Source: Opatha, 2002, Performance Evaluations of Human Resources 4

 What is Performance Evaluation (PE)?
• PE is the personnel activity by means of which the enterprise determines the
extent to which the employee is performing the job effectively.
Glueck (1979)

• Performance appraisal as a system of measuring, evaluating, and influencing an

employee’s job-related attributes, behaviours and outcomes, and level of
absenteeism to discover at what level the employee is presently performing on the
job.
Schuler and Youngblood (1986)

• PE is a systematic process by which the organization determines the degree to

which the employee is performing the job in relation to the set norms and
standards for a particular period of time and identifies the employee potential for
development.
5
 What is PE? Cont.
• Employee Performance Evaluation (EPE) is a systematic process of
identifying, measuring, influencing and developing job performance of the
employees in the organization in relation to the set norms and standards
for a particular period of time in order to achieve various purposes.
H.H.N.D.P. Opatha
• Job performance of a particular employee can be evaluated in terms of
• Traits - Qualities/characteristics possessed by a particular employee (Practical
knowledge of the jargon, Theoretical knowledge of the jargon, honesty, trust etc.)
• Behaviours – Actions/activities to be performed by the employee/the ways the
employee acts in relation to the job (Punctuality, attendance etc.)
• Results – Produced output/outcome by the employee (In case of a production
worker no of units produced etc.)

6
 Importance of EPE

Purposes of PE

Administrative
Development Purposes
Purposes

7
 Importance of EPE
Administrative Purposes
• PE provides a set of information needed to perform many functions which
are leading to the management of employees successfully.

• Human power planning –

• One of the steps of human power planning is to estimate HR supply.
• Estimating HR supply involves auditing current HR, which means assessing characteristics of
current employees so as to develop skill inventories and management inventories which
catalogs competences of each existing employee.
• To develop these inventories PE information is needed.

• Reward management - PE information is essential to make rewards (wages, salaries,

incentives etc.) decisions.
• Ex: Should pay increments be paid to employees at the end of a certain period or not?, If
increments are to be paid, how much should be paid?, Should performance incentives be paid?.
8
Importance of EPE Cont.
Administrative Purposes

• Management of promotions –
• Generally promotions are given on the criteria of seniority and competency.
• Competency refers to the degrees of efficiency and effectiveness of the employee.
• PE identifies and measures the degree of competencies of employees.

• Discipline administration –
• When an employee violates a certain rule, he/she should be punished through a disciplinary action
fundamentally.
• When determining the degree of severity of disciplinary action PE information may be useful.

• Administration of transfers –
• There may be employees who cannot perform tasks, duties and responsibilities of the current job
successfully and also there may be employees who can perform better another jobs rather than
current jobs.
• PE information will be helpful to identify and solve these problems (through right transfers).
9
Importance of EPE Cont.
Administrative Purposes

• Selection –
• Several methods of selection are used when selecting applicants to fill job vacancies.
• For effective and efficient selection, the methods used in selecting people should be validated and
for validation purpose it is necessary to evaluate how well employees are performing the jobs.

• Hiring –
• In order to make the decision regarding confirming an employee after the his/her probationary
period PE information relevant to each employee are being used.
• Also PE plays a significant role in deciding to hire a temporary employee into the permanent staff.

• Management of labour-management relationship –

• PE is an important factor that contributes to labour-management relationship significantly.

10
Importance of EPE Cont.
Development Purposes
• PE is useful in following ways for the management development.
• Training –
• It is essential to identify needs of employees before developing a training programme.
• PE is an effective source of identifying performance deficiencies of employees that are mostly
training needs of the employees.

• Success of training programmes –

• One way of determining the success of a training program is through an assessment of job
behaviour of an employee before and after the training.
• PE is used to assess employee’s job behaviour.

• Proper direction –
• It is possible for a superior to obtain information through PE, which is useful for guiding and
advising subordinates.
• The superior will be able to give specific and relevant feedback to the subordinates in order to
develop them.
11
Importance of EPE Cont.
Development Purposes
• Better productivity –
• PE increases mutuality between each subordinate and superior.
• It generates and encourages favourable superior-subordinate relations. Proper PE
reduces employees’ anxiety, as they know how they are performing.
• When systematic, regular and corrective feedback on performance is given to
employees their productivity enhances.
• Objective and fair PE help motivation of employees toward increased individual
performances and potential advancement in the organization.
• All these contribute to better productivity of an organization.

12
 EPE Process
01. Establish objectives of PE

02. Formulate policies of PE

03. Establish criteria and standards of PE

04. Select method (s) of PE

05. Design evaluation form and procedure

06. Train evaluators

07. Appraise

08. Discuss PE results

Source: Opatha, 2002,
09. Make decisions and store Performance Evaluation
of Human Resources
10. Review and Renewal 13
Chapter 09
 1. Establish objectives of PE
• Establishing objectives of PE is the first step of the process of PE.
• Based on purposes of PE it is possible to establish objectives.

Ex:
• To ascertain the current level of job performance of each employee.
• To ascertain strengths and weaknesses of employees.
• To identify training needs of each employee so as to improve each employee’s
• job performance.
• To ascertain potential performance and development needs so as to develop
• the employee for promotions.
• To provide a fair and objective rationale in order to reward employees

14
 2. Formulate policies of PE
• Any organization attempting to do EPE successfully should formulate clear
and appropriate policies in respect to various issues involved in PE.
• The organization should decide on the following major issues in terms of
well defined policies.

• Whose performance should be evaluated?

• When should PE be done?
• Who should do PE?
• How often should PE be done?

15
2. Formulate policies of PE Cont.
Whose performance should be evaluated?
• There are different categories and types of employees working in an organization. A
policy decision has to be taken regarding which employees to be evaluated.
Alternative employees on whom EPE can done are:
• Permanent employees only
• Permanent and temporary employees only.
• All employees (Including casual employees).
• Managerial employees only.
• Non- managerial employees only.
• A selected group of employees only.
When should be done?
• Regarding when to evaluate there are several approaches.
• Fixed Time Approach – In this approach employees’ performances are evaluated within a certain
period of time (One day/ two days/ several days/ one week etc.) depending on the number of
employees and the workload of the evaluator.

16
2. Formulate policies of PE Cont.
When should be done? Cont.
• Arbitrary Dates Approach – In this approach evaluating job performances of all
employees under the evaluator is done at different dates. Generally an employee’s
performance is evaluated on the date the employee was hired (anniversary date).
• Job Cycle Approach – Job cycle is the required time to complete every duty in the job for
once. Job cycle may include a full completion of a major task or work. (Eg: Teaching a
certain subject for one class and evaluating performance of students). In here EPE is
done after an employee finishes all duties of his/her job for one time.
Who should do PE?
• There are several alternative personnel who can be entrusted with the task of doing EPE.
Important alternatives include:
• Immediate superior
• Immediate superior and Immediate superior’s superior
• Several superiors
• Committee
• Outsider

17
2. Formulate policies of PE Cont.
Who should do PE? Cont.
• Peer
• Subordinates
• Customers/Clients
• Self
• Combination

How often should PE be done?

• This issue involves determining the frequency of PE.
• Eg: Annually, Semi-Annually, Quarterly, Monthly, Biweekly etc.

18
 3. Establish criteria and standards
• Specific criteria and standards to be used in judging employee performance
have to be identified, selected and established.
• Without criteria and standards no systematic and fair evaluation can be done.
Criteria
• Criteria refer to factors that are used to evaluate job performance of employees for
a certain period of time.
• They can be defined as a measure or factor of identifying success of job
performance.
• Ex: Quality of work, quantity of work, co-operation, cost of the work
• Several criteria have to be used in order to assess job performance of an employee.
(Ex: In considering the PE of a general typist if only the no of words typed per minute is
considered then the job performance of the general typist is not evaluated really. In here it
is required to consider other criteria as well, such as no of errors per page, pattern of the
presentation, care of tools etc.)

19
 3. Establish criteria and standards
Criteria Cont.
• Criteria can be divided into two categories.
• Objective Criteria
• Subjective Criteria

Objective Criteria
• Objective criteria are factors of evaluation that are quantifiable distinctly.
• Ex: No of units sold by a salesman
• Objective criteria are verifiable by others.
• Ex: If two sales executives evaluate a salesman’s units sold each executive gets the
same number of units sold.

20
 3. Establish criteria and standards
Subjective Criteria
• Subjective criteria are factors of evaluation that are not quantifiable distinctly.
• Ex: Cooperation
• Subjective criteria are not verifiable by others.
• Ex: If two sales executives evaluate a salesman’s cooperation each executive may not get the
same rating (there may be variations between two evaluations of the executives).
• It is not appropriate to use subjective criteria only for PE because they are more
prone to certain kinds of errors associated with evaluators.
• When using subjective criteria use of some objective indicators as many as possible
is appropriate.
• Subjective criterion – Discipline, then objective indicators as number of rules violations, number
of serious punishments and number of complaints can be used to make a more objective
evaluation with respect of the criterion of discipline.
• Only objective criteria are not sufficient to achieve many purposes of PE specially
development purposes.
21
 3. Establish criteria and standards
Standards
• PE standards indicate rating scales. By using standards, performance criteria
take on a range of values.
• It is essential to identify PE standards in order to assess how well and how far
employees are performing their jobs.
• Ex: Following scale may be determined in relation to the criterion of number
of units sold which is a common criterion in assessing the job performance of
the sales staff.
Excellent Units 81 – 100
Good Units 61 – 80
Average Units 41 – 60
Poor Units 21 – 40
Very Poor Units 1 - 20
22
 4. Select method (s) of PE
• A method of evaluating the employee job performance has to be selected.
• A decision has to be taken with respect of selecting a method of PE by
considering situational factors such as nature of job, purpose of evaluation,
cost involved etc.

23
 PE Methods
• Graphic Rating Scales
• Under this method the evaluator is supposed to provide a subjective evaluation of an
employee’s performance along a scale from very poor to excellent or very low to
very high.
• Scales are established for a number of criteria such as initiative, job knowledge,
loyalty etc.

• Checklist Method
• The checklist is a PE technique where the evaluator is given an evaluation form,
which consists of a list of statements representing the characteristics and
performance of the employee and is required to choose the statements applicable to
the employee being evaluated.
• Weights to different statements on the checklist are assigned by the manager who is
in charge of PE according to each statement’s significance.
24
 PE Methods
• Multiple Choice Method
This method is somewhat similar to the checklist method. The method has four or five
statements under each performance evaluation criterion and the evaluator is
supposed to select the statement which best applies to the employee being evaluated.
A marking scheme can also be introduced according to the relative significance of each
statement.
Ex: Statements of the Criterion Attendance
Attendance: Coming to work regularly Marks
1. Perfect attendance 10
2. Not more than one day of no-pay leave during the period of 08
evaluation.
3. Not more than two days of no-pay leave during the period of 06
evaluation.
4. Not more than three days of no-pay leave during the period of 04
evaluation.
5. Four or more days of no-pay leave during the period of 02 25
evaluation. Chapter 09
 PE Methods
• Self Evaluation and Discussion Method
Under this method any form can be used and there is a main distinction in using the
form. Accordingly, evaluation forms are provided to each employee (subordinate) and
they are asked to evaluate about their performance by themselves. Afterwards the
employee along with the completed form meets the superior, who will discuss the
subordinate’s ratings and make necessary moderations / changes where necessary. So
that a consensus of evaluation between the subordinate and the superior occurs at the
end.
• Essay Appraisal Method
This method requires the evaluator to write an essay in respect of the subordinate’s
strengths, weaknesses etc. An outline is sometimes provided suggesting key areas of
the job performance to be covered (Such as quality of work, cooperation etc.).
• Examination System
This is a method of PE generally used by large organizations. By giving question papers
on pertinent fields of jobs and then assessing the answers received for those, relevant
to knowledge, skills and intelligence etc. of each employee are determined.
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 PE Methods
• Critical Incidents Method
In this method the evaluator prepares and maintains a logbook for employees under
his/her span of control with the intention of recording important incidents of negative
and positive behaviours of each employee as they occur over the period of PE. The
logbook entries are then used to evaluate the employees at the end of the period of
PE.

Ex: Critical incidents – Restaurant Waiter

Positive Behaviours
• Put a fire out immediately before spreading. (24/08/2017)
• Make arrangements to return a valuable parcel to a regular customer who had forgotten it. (03/10/2020)

Negative Behaviours
• A seemingly important customer left owing to delay. (28/07/2020)
• Broke two glasses of water because of negligence. (21/08/2020)

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 PE Methods
• Rank Order Method/Straight Ranking
In rank order method the evaluator is required to rate employees from the best to the
worst on some given criteria.
Ex: Suppose that there are employees namely, A, B, C, D and E and four criteria namely
attendance, commitment, quantity of work and quality of work. According to the given
criteria five employees were evaluated by the evaluator in rank order as follows.

Employees Attendance Commitment Quantity of Quality of Total Rank

work work Number Order
A 1 1 1 2 5 1
B 2 2 3 1 8 2
C 3 5 2 3 13 3
D 4 3 5 4 16 4
E 5 4 4 5 18 5
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 PE Methods
• Alternative Ranking Method
Under this method evaluator is required to select the best employee and the worst
employee from the group of employees whose performance is being rated. Then he is
required to put the best at the head of the list and the worst at the bottom of the list.
Afterwards the best and the worst from the remaining employees are selected; and
the best is placed second on the list, and the worst next to the last. The evaluator
continues to select best and the worst till all the employees are ranked.
• Paired Comparison Method
Under this method the employees are evaluated in pairs taking an employee at a time
and comparing him/her against every other. Overall performance of employees or
performance on one specific criterion of employees can be considered for the
evaluation.
Suppose that there are five employees A, B, C, D, E. A is compared with B,C,D and E.
For each the same procedure is performed.

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 5. Design evaluation form and procedure
• Design of PE form and procedure is the fifth step. Having selected a method
of evaluation designing PE form and procedure is a must.
• PE form is a specific form used by an evaluator for the purpose of PE of an
employee.
• PE procedure is the method used for handling the PE form. It gives the
relevant specific guidelines for completing the PE form.
• Hereby either a common form and procedure for evaluating performance of
all jobs or separate forms and procedures depending on the nature of jobs
and employees can be designed.

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 6. Train evaluators
• This step includes training personnel who do evaluation of employee job
performance in the organization. Before implementing any PE programme,
evaluators should be trained adequately so that activities involved in actual
evaluation can be performed successfully or in the expected manner.
• Lectures, case study method, role playing, programmed instruction and
special course on PE can be used to train evaluators.

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 7. Appraise
• The seventh step includes appraising.
• This is the step where the evaluation of job performance of an employee is
actually done by an evaluator.
• The evaluator is supposed to evaluate the actual job performance of the
employee in order to achieve established objectives of PE in accordance
with policies formulated, criteria established, method selected, and form
and procedure designed.

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 8. Discuss PE results
• This step involves discussing of evaluation results.
• Once an evaluation has been done, it is necessary that the employee whose
performance was evaluated receive feedback.
• The evaluator through an interview called performance feedback interview
should give this feedback.

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 8. Discuss PE results
• Decisions should be taken by the respective authorities for various purposes
for which PE is done.
• For example, think that the PE is done to determine whether the employee should be
paid with the salary increment or not. Once the evaluation is done, payment or
nonpayment of the salary increment should be decided based on the evaluation
results.
• Completed PE forms will become reference documents, which will be used
in future for various purposes such as manpower planning, promotions,
rewards administration etc.
• These forms will have to be filed in a proper way and should be kept on files
for several years.
• Computers can also be used in this regard.

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 10. Review and renewal
• All the things involved in the above steps will contribute to development of
a system what is called employee performance evaluation system.
• Once a system is developed it cannot be used forever.
• Jobs and duties and responsibilities of jobs may change owing to various
changes, which occur within the organization.
• Also there is a need for finding out whether the system is being carried out
in the way it was planned and to determine whether improvements can be
made for more successful system.

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 Issues in PE – Problems with the Evaluator
Problems with the Evaluator – are the errors or mistakes, which may be made
by the evaluator in doing PE.
• Halo Effect
• When an evaluator appraises an employee high or low on many or all criteria
because of one criterion the error of halo effect occurs.
• For example, a production worker has never missed a day of work in the year of
evaluation. The production superior of that production worker gives the worker
excellent ratings on many or all other criteria of work, including quality and quantity
of work without really considering other criteria separately.
• Central Tendency
• Central tendency refers to the tendency of the evaluator to rate averagely on many
or all PE criteria. If the evaluator is reluctant to give extreme ratings – either
excellent or very poor, the error of central tendency occurs. Consequently PE is
distorted to make each evaluee or many evaluees appear to be average. When there
is a requirement that extremely high or low ratings should be justified with clear
documentation, this error often occurs.
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 Issues in PE – Problems with the Evaluator
• Harshness and Leniency
• The error of harshness occurs when the evaluator tends to be too hard in evaluating
performance. Hardly, a harsh evaluator gives excellent ratings to his/her evaluees.
• The error of leniency is just the opposite of harshness. It occurs from the evaluator
who is too easy in his/her evaluation of performance. Hardly, a lenient evaluator
gives very poor ratings to evaluees.
• When PE standards are not clear both errors may occur.
• Recency Effect
• When the evaluator's ratings are heavily influenced by results and/or behaviours
done and/or exhibited by the evaluee near the end of the PE period, the error of
recency effect occurs. In other words, when an evaluee’s job performance is rated
solely on performance occurred in the recent period of time irrespective of
performance occurred over the entire period of evaluation, the error of recency
effect happens. This error is an understandable evaluator error because recent
performance is more likely remembered and performance that may be several
months old is more likely forgotten by the evaluator.
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 Issues in PE – Problems with the Evaluator

• Personal Prejudice
• Generally every human being has prejudices of one sort or another. Excessively low
or high ratings are given only to a certain evaluee or certain evaluees because of
race, age, sex, religion, cast, personal relationship, jealousy and dislike.
• Unawareness
• This error refers to that the evaluator does not know what the evaluee does, or does
not understand the evaluee’s job adequately so as to assess it fairly.

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 Q&A

Thank You

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