HUMAN RESOURCE MANAGEMENT (80 BAHR 211)

1st Term - 3rd Exam | 1st Semester

Meaning and Scope of Transfer

Transfer
Is the movement of an employee from one position to another within the same organization, either lateral or
downward. Other organizations view transfer means as a of employee of expanding his experience and train him for any
possible executive position.

Two (2) Types of Transfer

❖ Promotion – Movement to a higher position, typically as a reward for good performance.

➢ Conditions of Promotion
Depending on the organization, the following are some criteria commonly used for the promotion of an
employee

✦ Standard qualification: Meets educational/skill requirements.

✦ Seniority: Length of service.

✦ Competence: Capability to handle higher responsibilities.

✦ Productivity: Work output and contributions to the organization.

❖ Demotion – Movement of an employee to a lower position, often as a form of punishment for poor
performance or misconduct.

Conditions of Transfer
❖ Employees must serve a minimum period before being transferred to evaluate their performance.
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 ❖ Proper transfer procedures help employees adjust to their new roles and workplaces.

❖ Transfer can resolve conflicts by repositioning employees, but frequent transfers can harm motivation,
performance, and productivity.

Reasons Why Transfers Are Made

❖ Disciplinary actions for negative behavior.

❖ Personal requests, such as wanting to work closer to home.

Principle of Merit Performance

Key factors for promotion:
➢ Work effectiveness: Quality of output with fewer resources.

➢ Mastery of tasks, good communication, and interpersonal skills.

➢ Participation in organizational activities.

➢ Work experience and academic qualifications.

Employee Morale – Employee morale refers to the overall attitude, satisfaction, and outlook of employees within the
workplace. It reflects how valued and motivated employees feel about their jobs, which significantly influences productivity
and engagement. High morale fosters a positive work environment, while low morale can lead to dissatisfaction and higher
turnover rates.

Morale of Employees – The morale of employees indicates their happiness, motivation, and commitment to their work
and the organization. High morale enhances productivity, collaboration, and creativity, while low morale results in
disengagement and decreased performance. Understanding employee morale is vital for organizations to improve job
satisfaction and retention.

Boosting the Morale of Employees

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 I. Give them a reason to believe: Help employees feel valued and connected to the company's goals and
vision. When they understand their role in the bigger picture, it fosters a sense of purpose.

II. Show you care: Demonstrate genuine concern for their well-being through regular check-ins, open
communication, and support when needed.

III. Recognize the good: Acknowledge and celebrate achievements, whether big or small, to motivate
employees and make them feel appreciated.

IV. Learn the value of fringe: Offer perks like flexible hours, health insurance, or extra leave days. These
benefits make employees feel cared for beyond just their salary.

V. Promote from within: Give employees opportunities for growth and advancement within the company. This
boosts motivation and loyalty.

VI. Bring on the fun: Organize team-building activities, social events, or even casual workdays to keep the work
environment lively and enjoyable.

Positive Effects of High Employee Morale – Increased productivity, better teamwork, lower turnover, and a positive
workplace atmosphere.

1. Increased Productivity – Motivated employees tend to work more efficiently and effectively.

2. Better Teamwork – High morale fosters collaboration and cooperation among team members.

3. Lower Turnover – Employees are more likely to stay with a company that values their well-being, reducing
recruitment and training costs.

4. Positive Workplace Atmosphere – A supportive environment leads to higher job satisfaction and employee
engagement.

5. Enhanced Creativity – Employees with high morale are more willing to share ideas and innovate.

6. Improved Customer Service – Happy employees often lead to better service, enhancing customer
satisfaction.
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 7. Stronger Company Reputation – A positive workplace culture can attract talent and improve public
perception.

Reasons That Won’t Boost Morale – Ignoring employee feedback, poor communication, lack of recognition, and failure
to provide growth opportunities can lead to low morale.

1. Ignoring Employee Feedback – Failing to listen to employees can lead to feelings of undervaluation and
frustration.

2. Poor Communication – Lack of transparency and clarity can create confusion and distrust.

3. Lack of Recognition – Not acknowledging employee contributions can diminish motivation and morale.

4. Failure to Provide Growth Opportunities – When employees see no path to advancement, they may feel
stagnant and disengaged.

5. Inadequate Compensation – If employees feel underpaid for their work, it can lead to dissatisfaction.

6. Unhealthy Work Environment – A toxic or stressful environment can negatively impact morale.

7. Micromanagement – Overly controlling management styles can stifle creativity and autonomy.

8. Lack of Work-Life Balance – Failure to respect personal time can lead to burnout and low morale.

9. Inconsistent Policies – Uneven enforcement of rules and policies can breed resentment.

10. Ignoring Personal Well-being – Not supporting employees' mental and physical health can decrease
overall morale.

Staff Motivation – Staff motivation involves encouraging employees to stay committed, perform well, and achieve
company goals.

Staff Motivation and Morale – High motivation typically leads to high morale, and both influence overall job satisfaction
and performance.
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 Theories of Motivation

Hierarchy of Needs – Maslow's Hierarchy of Needs is a psychological theory that explains human motivation, suggesting
people prioritize fulfilling basic needs like food and safety before moving on to higher-level needs like relationships,
esteem, and personal growth. The purpose of the model is to understand what drives individuals at different stages and
how meeting these needs influences behavior and motivation.

Herzberg’s Two-Factor Principles

● Motivators – Factors that lead to job satisfaction (achievement, recognition).

● Hygiene Factors – Elements that prevent dissatisfaction but don’t necessarily increase satisfaction (salary,
work conditions).

McClelland’s Needs Theory

Motivation is driven by three needs: achievement, power, and affiliation. Employees are motivated by one of these
dominant needs.
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 Douglas McGregor’s Theory X and Theory Y

● Theory X – Assumes employees dislike work and need strict supervision.

○ Avoid Work

○ Must be Controlled

○ Avoid Responsibility

○ Seek Security

● Theory Y – Assumes employees are self-motivated and seek responsibility.

○ Work is Natural

○ Self-Direction

○ Seek Responsibility

○ Good Decisions Widely Dispersed

Alderfer’s ERG Theory – Clayton Alderfer developed Maslow’s Hierarchy of Needs into three (3) factor model of
motivation known as the ERG model. Focuses on three needs: existence (basic needs), relatedness (relationships), and
growth (personal development). Unlike Maslow, employees can pursue multiple needs at once.
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 Adam’s Equity Theory – This calls for a fair balance to be struck between an employee's "inputs" (hard work, skill level,
acceptance, enthusiasm, and so on) and their "outputs" (salary, benefits, intangibles such as recognition, and more).
According to the theory, finding this fair balance helps to achieve a strong and productive relationship with the employee,
with the overall result being contented, motivated employees. Employees are motivated when they perceive fairness in
the workplace, particularly in how they are rewarded compared to others.

Victor’s Vroom Motivation Theory – Employees are motivated when they believe their efforts will lead to good
performance and that performance will be rewarded.
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 Skinner’s Reinforcement Theory – Behavior is shaped by positive and negative reinforcement. Rewarding good
behavior motivates employees to repeat it, while negative behavior should be discouraged through consequences.

Performance Management – It is a structured approach used by organizations to ensure employees' work aligns with the
company’s goals and objectives. It involves setting expectations, monitoring progress, providing feedback, and addressing
performance problems to promote continuous improvement.
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 ● Purpose

○ Align activities with organizational goals. Ensures that what employees do contributes directly to the
company's objectives.

○ Address performance problems. Identifies areas where employees are underperforming and provides
steps to fix them.

○ Resolve issues through feedback. Uses regular feedback to help employees improve continuously.

Purposes of Performance Management

1. Strategic Purpose – Ensures that employee actions support long-term company goals, helping the
organization achieve its vision.

2. Administrative Purpose – Provides data for making HR decisions based on performance results, such as
promotions, salary increases, or layoffs.

3. Development Purpose – Serves as the basis for development. Helps identify strengths and areas for
improvement, guiding employees in their career development and skill enhancement.

Process Components
It is a continuous process, not a one-time event; involves regular goal-setting, feedback, and adjustments to keep
employees on track.

The Process of Performance Management

Step 1: Define performance outcomes for company division and department. Set specific goals for what each
department or team should achieve to support overall business objectives.
Step 2: Develop employee goals, behavior, and actions to achieve outcomes. Create individual employee targets
and the behaviors/actions they need to focus on to meet department goals.
Step 3: Provide support and ongoing performance discussions. Regularly check in with employees to offer
guidance, resources, and feedback.
Step 4: Evaluation performance. Formally assess how well employees met their goals and performed their duties.
Step 5: Identify improvements needed. Pinpoint areas where employees can do better or need more development.
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 Step 6. Provide Consequences for performance results. Based on performance, offer rewards (e.g., bonuses,
promotions) or address poor performance (e.g., additional training or corrective actions).

Criteria for Effective Performance Management

● Fit with Strategy – The performance management system should be aligned with the company’s goals and
strategies.

● Validity – It should measure all aspects of job performance accurately without missing key areas.

● Reliability – The system should give consistent results.

○ Inter Reliability – Different managers or supervisors should rate the same employee similarly.

○ Test-Retest Reliability – Performance should be evaluated consistently over time.

● Acceptability – Both managers and employees should agree that the system is fair and reasonable.

● Specific Feedback – Feedback should be detailed enough for employees to know what they did well and what
they need to improve.

Methods for Measuring Performance

1. Making Comparison

● Simple Ranking Method – Employees are ranked from highest to lowest based on overall performance.

● Force-Distribution Method – Employees are divided into performance categories (e.g., top 10%, middle 80%,
bottom 10%).

● Paired-Comparison Method – Each employee is compared with every other employee, and the one who
performs better in more comparisons is ranked higher.

2. Rating Behavior
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 ● Critical-Incident Method – Records specific examples of effective or ineffective behaviors that are key to job
success.

● Behaviorally Anchored Rating Scale (BARS) – This scale rates behaviors based on specific job-related
examples of excellent, average, or poor performance.

● Behavioral Observation Scale (BOS) – Measures how often an employee demonstrates key job behaviors.

● Organizational Behavior Modification (OBM) – Uses reinforcement (rewards or penalties) to encourage

desirable behaviors.

Sources of Performance Information

360 degrees Approval

Collects performance data from multiple sources: managers, peers, subordinates, and sometimes customers, giving a
full view of an employee’s performance.

Types of Rating Errors

1. People often have biases that affect how people rate others, often influenced by unrelated factors.

2. Contrast Errors are comparing employees to each other rather than to a set standard. This can lead to
inaccurate evaluations.

3. Distribution Errors are incorrect use of rating scales, like being too lenient, too harsh, or using the middle
of the scale for everyone.

4. Recency Bias (R) – Rating based only on recent events instead of the entire performance period.

Pitfalls in Performance Appraisal

1. Halo Effect

2. Leniency Effect

3. Stringency Effect
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 4. Recency Effect

5. Central Tendency Effect

6. Stereotyping

Pitfalls in Performance Appraisal

1. Halo Effect – Letting one positive trait (like punctuality) influence the entire performance evaluation, even if
other areas are lacking.

2. Leniency and Strictness Errors – Some evaluators are too lenient, giving everyone high ratings, while
others may be too strict, giving consistently low ratings, regardless of actual performance.

3. Central Tendency – Rating all employees as average or in the middle of the scale, avoiding giving very high
or very low ratings.

4. Recency Effect – Basing the evaluation mostly on recent events or performance rather than considering the
entire review period.

5. Stereotyping – Making assumptions about an employee based on their gender, race, age, or other personal
factors, rather than their actual performance.

6. Personal Bias – Letting personal opinions or feelings about an employee influence the evaluation, whether
positively or negatively.

Ways to Reduce Errors

● Training Evaluators – Educate managers on how to avoid common rating errors.

●Copy_BAHR
Use of Structured 211_Notes
Rating Scales – Ensure consistency in ratings by using specific, clear criteria.

● Multiple Raters – Involve multiple people in the evaluation process to minimize individual biases.

Political Behavior in Performance Appraisal

Employees or managers may manipulate ratings to serve personal interests, such as favoritism or punishing those
they dislike. This is why transparency and fairness are critical in the appraisal process.
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 Appraisal politics refers to the manipulation or bias in performance evaluations for personal or political reasons rather
than objective criteria. This can lead to inaccuracies in performance ratings, resulting in unfair advantages or
disadvantages for employees. It can undermine trust in the appraisal system, reduce employee morale, and ultimately
affect overall organizational performance.

Giving Performance Feedback

Feedback should be clear, specific, and focused on improvement. It should address both strengths and areas for
development and offer actionable advice.

Findings of Performance Management

● Lack of Ability – Employees may struggle due to insufficient skills or knowledge, requiring more training or
support.

● Lack of Motivation – Employees may have the ability but lack the drive, requiring efforts to boost
engagement.

● Lack of Both – Some employees may face a combination of both issues, needing tailored interventions to help
them improve.

_Glad!ola
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