Professional Documents
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Introduction To Human Resource Management
Introduction To Human Resource Management
Introduction To Human Resource Management
The management process is the process of managing business operations to successfully meet
the organizational goals. The process refers to the development of expectations about the
future and provide guidance to the associated assumptions. The management process consists
of five basic management functions.
1. Planning
2. Organizing
3. Leading
4. Staffing
5. Controlling
1.1 Planning
Planning is the function of management which involves setting objectives and determining a
course of action for achieving those objectives. The planning process is a fundamental function
of management and should result in the best possible degree of need satisfaction within the
resources available. This process establishes goals, standards, plans and forecasting.
Example: the top level managers always do the planning part. The owners, CEO, board of
directors of a certain company might do these works.
1.2 Organizing
Example: the middle level managers organize the whole plan and divide tasks among workers.
The department heads basically organize the tasks.
1.3 Staffing
Staffing is hiring employees with eligibility and working capability. The organizational goal can
only be achieved if the staffing is done well. It includes employment, setting performance
standards, evaluation of employees, counseling, training e.t.c.
1.4 Leading
Leading is the procedure of inspiring others to get the job done, maintaining morale, motivating
team members and making sure that the job is done by the right person.
1.5 Controlling
Controlling is setting a standard of work and checking if the given work is done by maintaining
that standard. If the work is not done following the standard, corrective actions should be
taken.
Example: the standard is explained to the workers and the workers measure their performance
with the standard.
‘The policies and practices involved in carrying out the ‘people’ or human resource aspects of a
management position including recruiting, screening, training, rewarding and appraising’—Gary
Dessler.
This process is the allocation of manpower according to their capability in order to get the goal
achieved. This is a broad aspect as it includes hiring employees and allocating them in the right
position.
3. Personnel aspects of a manager’s job
1. Conducting job analysis: job analysis is conducted to collect job related information and it
produces two elements.
* Job description
* Job specification
2. Planning labor needs and recruiting candidates: HR managers make a list of the needs and
wants of the workers and also recruit candidates based on qualification.
3. Selecting candidates: selection is the filtering process after recruitment. Managers select
candidates based on written exam, interview, assessment and other processes.
4. Orienting and training new employees: orientation is done to make the company profile and
the goals transparent to the new candidates. Candidates are well introduced with the
organization through this process. Training is provided by the managers in order to develop
working skills of the employers.
5. Managing wages and salaries: managers manage the wages, salary and bonus structures.
They form a standard structure by comparing with the local competitors.
6. Providing incentives and benefits: managers have to decide which employee deserves
benefits and incentives. They measure work performances and decide whom to give the
incentives.
9. Training and developing managers: Training is the process of learning any specific skills,
knowledge which is short time in nature and development is the implementation of the training
to increase job skill.
10. Building employee commitment: Building commitment to the employees is a strong part of
organization and it is done by the managers.
5.1 Line manager: a manager who is authorized to direct the job f subordinates and is
responsible for accomplishing the organizations’ tasks. Line managers are directly involve with
the work and output in an organization.
Example: production managers are directly involved with the production process.
*line managers have the quality to supervise coach, lead the team members and subordinates.
*a line manager who can see what needs to be done and help the team plan and organize the
same.
*a line managers have interpersonal skills to build creditability with his team.
*to have the ability to make the necessary courage and difficult decisions and convert them
into actions.
* a line manager have to be open minded and unbiased to give honest feedback.
Staff manager: Staff managers serve the line managers of the organization in an advisory or
support capacity by providing them with information and advice staff managers usually do not
make operating decision. HR managers can b considered as staff managers. They deals with
legal affairs.
*flexible in administering policies and in their own work schedules, policies and guidelines.
6. HR management challenges:
6.1 economic and technological changes:
globalization is the tendency of firm to extend their sales, ownership and
manufacturing and agricultural to service industries and telecommunications.
More globalization means more competition and more competition is more
pressure.
Growth of information technology is expanding the business.
6.2 workforce availability and quality:
inadequate supply of workers with needed skills for ‘knowledge jobs’
education of workers in basic skills
6.3 growth in contingent workforce:
increase the temporary workers, independent contractors, leased employees and
part times.
6.4 demographic and diversity issue:
more diversity of race, gender, age and ethnicity in the workforce
demographic trends are making, finding, hiring good employees
6.5 balancing work and family:
dual career couples
single parent household
declining the traditional family
working mothers and family
6.6 organizational restructuring, merger and acquisition:
right sizing the organization
resizing the company structure by eliminating of layers of management closing
facilities, merging with other companies and workers.
7. HRM duties:
7.1 line function: the human resource manager directs the activities of the people in his or
her own department and in related service area.
7.2 coordinative function: HR manager also coordinate personnel activities; a duty often
referred to as functional authority or functional control. Here HR manager acts as the
right hand of the top executive to ensure that the line managers are implementing the
firm’s human resources policies and practices.
Example: HR manager
7.3 staff functions: Assisting and advising line managers is the heart of the human resource
managers job. HR manager advises CEO to better understand the personnel aspects of
the company’s strategic options.
8. HR specialist:
8.1 job analysis: the procedure for determining the duties and skill requirements of a job
and the eligibility of a person is job analysis.
8.2 EEO coordinates : it refers to equal employment opportunity. It makes sure that each
eligible candidate gets the best way to apply for the position. Personal preferences and
biasness is eliminated through this process.
8.3 Compensation manager: they are responsible for researching establishing and
maintaining a company’s salary system. The compensation manager research and
understand the current and upcoming competitive markets for employee pay and
benefit.
JOB ANALYSIS
Job analysis: A job analysis is a systematic exploration of the activities within a job. It is a basic
technical procedure, one that is used to define the duties, responsibilities and accountabilities of a
job.
The supervisor or HR specialist normally collects following types of information via job
analysis:
Job Content
Job Context
Job Requirements
1. Job Content: It contains information about various job activities included in a specific
job. It is a detailed account of actions which an employee needs to perform during his
tenure. The following information needs to be collected by a job analyst:
Duties of an employee
What actually an employee does
Machines, tools and equipments to be used while performing a specific job
Additional tasks involved in a job
Desired output level (What is expected of an employee?)
Type of training required
The content depends upon the type of job in a particular division or department. For
example, job content of a factory-line worker would be entirely different from that of a
marketing executive or HR personnel.
2. Job Context: Job context refers to the situation or condition under which an employee
performs a particular job. The information collection will include:
Working Conditions
Risks involved
Whom to report
Who all will report to him or her
Hazards
Physical and mental demands
Judgment
Well like job content, data collected under this category are also subject to change
according to the type of job in a specific division or department.
3. Job Requirements: These include basic but specific requirements which make a candidate
eligible for a particular job. The collected data includes:
Knowledge or basic information required to perform a job successfully
Specific skills such as communication skills, IT skills, operational skills, motor
skills, processing skills and so on
Personal ability including aptitude, reasoning, manipulative abilities, handling
sudden and unexpected situations, problem-solving ability, mathematical abilities
and so on
Educational Qualifications including degree, diploma, certification or license
Personal Characteristics such as ability to adapt to different environment,
endurance, willingness, work ethic, eagerness to learn and understand things,
behaviour towards colleagues, subordinates and seniors, sense of belongingness to
the organization, etc
For different jobs, the parameters would be different. They depend upon the type of job,
designation, compensation grade and responsibilities and risks involved in a job.
Through job analysis hr department collect information and then using those information they
write job description and job specification, which are the two main product of job analysis.
Job Description
Job Specification
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It generally includes the requirement of job holder which consists the following information:
Job analysis is very important in many steps of managerial work. Collected information through
job analysis support several HRM activities.
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Recruitments and Selection: From job description HR managers get idea about the duties of a job
and from job specification they get informed what type of human characteristics are required to
perform these duties.
Performance Appraisal: To do performance appraisal supervisors need to know the standard with
which they can compare the performance of the employee. Managers use job analysis specially
job description to determine this standard.
Compensation: To assign compensation it is necessary to know the worth of the job, the job’s
required skill and education level, safety hazard, degree of responsibilities and so on. All these
information are well explained in job description and job specification. So in this way job
analysis helps to determine the worth of a position and appropriate compensation for this
position.
Training: By knowing a job’s specific duties and requisite skills from job description managers
can arrange effective training programme.
EEO Compliance: Through job specification managers find out the requisite skills for a specific
position and then hire people maintaining equal employment opportunity.
Discovering Unassigned Duties: While doing job analysis HR managers sometimes find out
duties done by the employee of a specific position which are not mentioned in the previous list.
Then they can add them into new job description.
Job Enlargement:
Assigning workers additional same level activities, thus increasing the number of activities they
perform.
Job enrichment:
Redesigning jobs in a way that increases the opportunities for the worker to experience feelings
of responsibility, achievement, growth, and recognition.
Job Rotation:
Job rotation involves systematically shifting workers from one job to another
to sustain their motivationand interest. Under specialization, each task is broken down into small
parts. For example, assembling pensmight involve four discrete steps: testing the ink cartridge, in
serting the cartridge into the barrel of the pen, screwing the cap onto the
barrel, and insertingthe assembled pen into a box. One worker performs each ofthese four tasks.
When job rotation is introduced,the tasks themselves stay the same. However, the workers
who perform them are systematically rotated across the various tasks.
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Le vel N
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Mid Level
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If J performs K’s or any other’s job from root level, or D performs G’s job or any other’s
job from mid level it is known as job enlargement.
On the other hand if anyone from a level works in other level such as L in mid level, D in
top or root level or A in mid or root level it refers to job enrichment.
PERSONNEL PLANNING AND RECRUITING
1. Recruitment and selection:
Recruitment:
Recruitment is the process of finding and hiring the best qualified candidate for a vacant
position in an organization. Recruitment can be defined as searching for and obtaining a pool
of potential candidates with desired knowledge skill and let them apply for the job openings. It
includes analyzing the requirements of a job, attracting employees to the job and gathering a
pool of applicants for the vacant positions.
Selection:
Selection is the procedure by which the perfectly eligible candidates from the pool of applicants
are hired finally by passing the phases of written tests, interviews, assessments, reference
checks and many more. It is the final phase of hiring someone for the position.
Recruitment and selection are the two phases of the employment process. The differences
between the two are:
Recruitment Selection
Recruitment is the process of searching the Selection involves the series of steps by which
candidates for employment and stimulating the candidates are screened for choosing the
them to apply for jobs in the organization most suitable person for the vacant position.
The basic purpose of recruitment is to create a The basic purpose of selecting is to choose the
pool of candidates for the organization by right candidate to fill the various positions in
attracting more and more employees to apply the organization.
in the organization
Recruitment is a positive process as it Selection is a negative process as it involves
encourages many employees to apply rejection of unsuitable candidates
Recruitment is concerned with tapping the Selection is concerned with selecting the most
sources of human resources suitable candidate through various interviews
and tests
There is no contract of recruitment Selection results in a contract of service
established in recruitment between the employer and the selected
employee
2. The recruitment and selection process:
The next step of job analysis is recruiting and selecting. We can envision the recruitment and
selection process as a series or hurdles.
Internal sources:
internal sources of recruiting means posting the job vacancy only among existing or previous
employees of the organization. The assessment of an employer's current staff to ascertain if any
current employees are sufficiently skilled or qualified to perform required job vacancies. When
a business engages in internal recruitment, a current employee might be reassigned to the
new position by giving them either a promotion or an internal transfer.
example:
the HR manager personally calls a previous worker of the company and asks if she
or he is interested to apply for the opening.
The managers decide ton post a job vacancy announcement in the notice board of
the organization or in the intranet of the organization.
external recruitment:
Example:
The organization process an advertisement and posts it in the internet job portal or
news paper.
The organization takes help from the third part HR consultants in order to recruit
people.
4. Internal recruitment:
Rehiring: rehiring is offering the job vacancy to someone who has already worked for the
organization previously. Personally calling and asking to join is the rehiring process of
recruitment. In this way there is certainly an advantage that the employee already knows
the company profile very well. He or she should not be introduced with the organizational
ethics, mission vision and so on. But as a negative aspect they might not have a positive
attitude toward the job.
Advantages of internal recruitment:
5. External recruitment:
Effective recruiting is increasingly important. There are several things that make it more
complex.
Testing: testing refers to select some specific candidates from a pool of candidates after
recruiting and give them a chance to be evaluated by interview, assessment and some other
phases.
If you select 200 candidates to be interviewed you can say they will be tested.
Selection: selection is the final procedure of hiring candidates. After testing a few candidates
would be selected and hired for the vacant post.
If you select 6 person among 200 candidates they are called selected.
The importance of testing and selection:
Testing and selection are the most important factor for hiring workers. The importance of these
procedures can be showed up in three points.
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Negligent hiring:
Negligent hiring means hiring a worker with questionable background without any proper
safeguard. Negligent hiring can cause many accidental issues.
Example:wal-mart has recently sued because of negligent hiring. Some workers used to harass
girls sexually.
Effects of negligent hiring:
A systematic effort should be made to gain relevant information about the applicant.
The company needs to carefully scrutinize information on employment if those are
provided right.
All the records of the applicant should be saved
Written authorization for reference check should be got and the references should
be checked
Applicants with false statements or conviction records for offenses related to the job
should be rejected
There should be a balance between the applicant’s privacy rights and others’ ‘need
to know’
Immediate actions should be taken if problem arises.
Testing concepts:
There are 2 basic concepts of testing on the basis of how it is done. They are reliability and
validity.
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Reliability: reliability is a test’s first requirement and refers to the consistency. It refers to the
consistency of scores obtained by the same person when retested with the identical tests or
with alternate forms of the same test.it is basically the stability of gained scores by one person
over different time.
Example: suppose there is a company ready to hiresome people. Before testing candidates they
would prepare a question and let some internal worker face it overtime. They would see the
stability of gained marks of one time. If the marks are stable, the question would be called
reliable.
Validity: validity is measuring the test whether it is relative to the job or not. It ensures if it is
measured what was about to.it is actually the accuracy with which a test, interview and so on
measures what it purports to measure or fulfills the function it was designed to perform. It is
basically the successiveness of a test.
Example: if you put football match related questions in a bank job test, it is definitely not valid.
Example: those who can solve puzzles in a test can do better in the management team of a
company.
Content validity: content validity resembles a test containing a fair sample of the tasks and skills
actually needed for the job position. Here in the test the questions would be directly related to
the job tasks. It demonstrates that the tasks the person perform on the test are really a
comprehensive and random sample of the tasks performed in the job and the condition under
which the person takes the test resemble the work situation is always easy.
Example: a test for the vacant position in a call center with content validity may ask questions
like ‘how to divert a call?’
Face validity: face validity is the way to judge the candidate. it is basically finding the
resemblance between the person applied and the person applied and the person coming for
the test.
Example: if someone with while skin seats for the test. It can be found with face validity test.
Basic skill test: it defines the abilities to read instructions, write reports and do
arithmetic adequate to perform best.
Job skills test: these are the tests which results if the worker is doing his work
properly or not.
Psychological test: it determines if the worker is mentally stable or not.
Why use testing?
It the work demands are increased more skilled worker would be needed to fulfill
those. So choosing skilled employee by testing is useful.
Screening out the bad or dishonest employees by testing is a perfect method to
avoid negligent hiring.
Testing reduces turnover by personal turnover.
These investigations are needed to check the honesty of the applicants as their provided
informations are right or wrong.
Reference check
Background employment check
Criminal records
Driving records
Credit checks
Based on purpose
INTERVIEWING CANDIDATES
1.Interview: An interview is a process of collecting information via oral responses. A job
3. Based on purpose: based on purpose interview can be divided into mainly three types.
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interview is a type of employment test that involves a conversation between a job applicant and
representative of the employing organization.
To assess the candidates suitability for the position
To give information to the candidate
To present the company in a good light to the applicant
3.2.Appraisal interview: An one to one interview between supervisor and employee following
performance appraisal. The annual Appraisal Interview however offers the opportunity to
systematically discuss the following content:
Discuss work and performance of the past year – tasks, work conditions and cooperation
Resolve problems and misunderstandings
Mutually voice acknowledgement and critique in a factual matter
Agree on measures to boost development and further education
Mutually agree on long term goals and focus points
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3.3 Exit interview: Exit interviews are interviews conducted with departing employees, just
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before they leave. From the employer's perspective, the primary aim of the exit interview is to
learn reasons for the person's departure, on the basis that criticism is a helpful driver for
organizational improvement. Exit interviews (and prior) are also an opportunity for the
organization to enable transfer of knowledge and experience from the departing employee to a
successor or replacement, or even to brief a team on current projects, issues and contacts.
4. Based on formats: all three interviews can be divided based on formats. Based on formats
interviews are of two types-
Structured interview
Unstructured interview
4.1 Structured Interview: It’s an interview process where all the questions are pre determined. In
a structured interview, each candidate is asked similar questions in a predetermined format.
Emphasis tends to be on your past experience and assets you can bring to company. Typically,
the interviewer records your answers, which are potentially scored on a standard grid. All kind of
selection interviews can be structured. It actually depends on the interviewers whether it would
be structured or not.
4.2 Unstructured Interview: In unstructured interviews all questions or most of the questions are
not predetermined. Unstructured interviews are much more casual and unrehearsed. They
depend on free flowing conversation which tends to focus on your personal qualities as they
relate to the work. Questions about skills and strengths can be asked and should be answered as
formally as in a structured interview.
Unstructured interviews are much important than structured interviews in many cases because
conversation and exchange is more important than the particular questions being asked.
5. Based on Content: Here content refers to the types of question asked in different kind of
interviews. Based on content interviews can be divided into four types. Such as-
Situational Interview
Behavioural Interview
Job related interview
Stress interview
Instead of asking how you would behave, the interviewer will ask how you did behave. The
interviewer wants to know how you handled a situation, instead of what you might do in a
hypothetical situation.
“Have you had to convince a team to work on a project they weren't thrilled about? How did you
do it?”
5.3Job related interview: those interviews are called job related interview where the interviewer
frequently ask the interviewee questions about the tasks to be completed within the job. In this
kind of interview the questions can be pre determined or not. The interviewee has to present his
job related skills positively by showing previous experiences.
“What will the main tasks and responsibilities be in this job? And What do you think the main
challenges will be?”
Stress interview: The stress interviewing technique is typically used only for positions in which
the job-seeker will be facing stress on the job, and the interviewer wants to see how well he or
she can handle the pressure. The key to surviving stress interviews is to remain calm, keep a
sense of humor, and avoid getting angry or defensive. The interviewer may try to stress you in
one of several ways, such as asking four or five questions in a row, acting rude or sarcastic,
disagreeing with you, or simply keeping you waiting for a long period.
6. Based on How its Conduct: an interview can be conducted in many ways. Of them the most
three common and effective procedures are –
Sequential
Panel
Maas
Candidate 1
Candidate 2
Candidate 3
6.2 Panel Interview: When a interview is arranged with more than one interviewer who attend
the interview together creating a board or panel. It can be both structured and unstructured. Each
panel member will take turns to ask questions relevant to their interests and after the interview
the candidate can be discussed and rated from each member's perspective.
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6.3 Maas Interview: A mass interview is an interview where several job candidates are all being
interviewed at the same time. It is also referred to as a group interview. The point of a mass
interview is to see if a particular candidate stands out in the crowd and to see how individuals
interact with each other.
7. The most effective method of conducting interview: among sequential panel and mass
interview sequential is the best one. Because through this interview a candidate is judged several
time. One interviewer’s score doesn’t affect other’s. If there is enough time and no money or
resource problem then an organization should go for sequential interview. If sequential is not
possible then the second choise should be panel interview. Ten the last choise should be maas
interview if the purpose is not to evaluate for group work.
Hiring the right people is an essential management job, and you can’t do that job if you don’t
know how to interview. Several things can undermine an interview’s usefulness.
(Start of Interview)
Interviewer: Tell me something about yourself that is not mentioned in the resume.
Interviewee: Any company I have ever worked, whether I was in sales or not, I firmly believed
that every company must be focused on sales. Many positions I have held were in customer
service where we supported a team of sales representatives. Really, without sales, no one in the
company would have a job – there would be no company. I’m very interested in working with
your team to push your sales to the next level.
Interviewee: I really enjoy the quicker pace of a shorter sales cycle. I like to get right to the point
about my product's features and benefits, and showcase the reasons why it's the best choice for
the customer. I'm knowledgeable about what I am selling, and ready with answers to any
questions they may have.
Interviewee: I have always met or exceeded my professional sales goals, and most often my
personal ones too, especially in the last few years. I think with experience, I have learned to set
my personal goals at an attainable level, very high, but not unreachable.
Interviewee: I really enjoy making contacts, and spending time talking with people. The most
rewarding part of being in sales, for me, is the time spent with customers, helping them make the
right decision about a product.
Interviewer: What are your long term career goals?
Interviewee: Long term, I see myself as a Senior Sales Director at a large wholesaler or retailer. I
really enjoy being in sales, and I believe that I have the ability to manage a large successful sales
team.
Interviewee: My customers are finding that our apples make an excellent healthy snack for
families on the run or to pack with your children's school lunch. Our apples are fresh and crisp
since we source them weekly from local orchards. We only sell apples which are grown
organically without pesticides and chemical fertilizers. Our apples are loaded with beneficial
fiber, vitamins and nutrients so in an addition to being sweet and tasty, they are great for your
health.
Interviewee: I'm an ambitious person, and that helps me in sales. I really like to make sure that
my customers are thoroughly informed, and that I provide the best possible service. I feel like
I've done a good job when I have made a sale that required using all my talents.
Interviewee: My most successful sale was one where I had taken over a customer from another
salesperson who had to leave suddenly. I immediately contacted the person, and let them know
the situation. I knew that my colleague was having a difficult time getting the client to commit to
the purchase of a large motor home. Part of it was circumstantial, but when I was given the
opportunity to take over the sale, I was able to give the customer some reflection time, and was
ultimately able to close the sale.
Interviewee: My former supervisor would say that I work well as a part of a team, as well as
being motivated on my own. At that particular company, it was important to be able to keep all
the team members informed, as we worked collaboratively on many sales. It was an interesting
environment, and I found it enjoyable and challenging.
Interviewee: Absolutely. I enjoy reaching out to people with new products and ideas.
Importance of training
Training and development helps to provide an opportunity broad structure for the development of
human resource. It helps increasing the knowledge and skill of employee in each level. It helps to
increase productivity, inculcating the sense of team work, improved organizational culture and
effectiveness and developed work quality.
Orientation
Orientation is a procedure for providing new employees with basic background information about the
firm. New employees are not known that what to do or how to do their job. It is a process that introduce
to the new employees with the environment or system of the organization before starting job.
Purpose of Orientation
Orientation provides new employees with the basic background information they need to work in a
company. It helps to get idea about the firm where they work for and mentally set up for become a
member of the firm.
The human resource specialist or the office manager usually performs the first part of the orientation,
by explaining basic matters like working hour, benefits and vacation. That person then introduces new
employees to his or her new supervisor. Then the supervisor continues the orientation by explaining
following information:
Evaluation
need analysis Instructional Program
designing implementation
1. Need analysis: identifies the specific job performance skills needed, assesses the prospective
trainee skills and develops specific, measurable knowledge and performance objective based on
any deficiencies.
2. Instructional designing: next step is design the training how long it will take, training program
content and other limitation of training.
3. Program implementation: which elements are required to implementing the training like hire
trainer, collecting material, machine etc.
4. Evaluation: in last stage evaluate the effectiveness or result from the training. If it didn’t work
to increase the skill lacking of employee, what are the problem it hold recheck it.
Training presents a prime opportunity to expand the knowledge base of all employees, but many
employers find the development opportunities expensive. Employees also miss out on work time
while attending training sessions, which may delay the completion of projects. Despite the
potential drawbacks, training and development provides both the company as a whole and the
individual employees with benefits that make the cost and time a worthwhile investment.
Training is futile the trainee lacks the ability or motivation to benefit from it.
Task analysis: It is a detailed study of a job to identify the specific skills required.
According to the interview reviewing the new employees lacking are mark down. Then provide
them specific training.
Advantage
There are many advantages in on-the-job training:-
1. In on-the-job training there no need to hire trainer so it is inexpensive.
2. Employee learn the job by doing it, it help him to skill transfer.
3. On-the-job training employee can get immediate feedback, so they correct their mistakes
easily.
4. There no need to go other where to trained up so it reducing the time.
Off-the-job Training
Off-the-job training method takes place away from normal work situations, implying that the
employee does not count as a directly productive worker while such training takes place. Off-
the-job training method also involves employee training at a site away from the actual work
environment. It often utilizes lectures, case studies, role playing and simulation, having the
advantage of allowing people to get away from work and concentrate more thoroughly on the
training itself.
Let us think Grameenphone telecommunication has hired 20 candidates for the post of call
center agents. All the hired employees are undergraduate students. None of them has any
experience in this sector. The organization will have to provide a 45 day training to the hired
applicants. The training process will include the regulations below:
The purpose of this training would be effective if the employees originally increase their job
skills and apply them in their working.
Performance appraisal:
The HRD as well as the Supervisor both do the appraising task. The human resource managers
selects the criterion on which the employee needs to be appraised. They set a standard and
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explains it to the supervisors. The supervisors scrutinize each and every worker day to day and
does the appraising directly. But there are some potential appraisers also. From these potential
appraisers a certain percentage of one’s performance is evaluated.
Self rating: the employee is given a chance to rate himself. Here he gets to claim himself as
better with logics.
Subordinates: subordinates often says it well how the employee behaves as a boss. How he
controls situations and his decision making.
360 degree feedback: here all the co workers provide feedback about the employee.
Peers: the colleagues who are directly working with the employee can give the best rating
about him sometimes.
Immediate supervisor: this is the only reliable source and best one to appraise well.
The supervisors role:
Makes a framework
Set the standards and criterions
Explain the criterions to the supervisors
Monitors the whole system
Defining the job and Selecting performance area: it means making sure that you and your
subordinate agree on his or her duties and standards.
Providing feedback: here the supervisor and the HR manager discuss about the subordinate’s
working progress and what should be done.
Problems of appraisal:
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Unclear standards: setting a standard is so important as different supervisors will appraise
differently on basis of their own concepts. One supervisor may not say it good which is
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excellent to others. HR must set a standard which will effect that what kind of works should be
rated in which manner.
Halo effect: this is the effect of one criterion on another. If an employee is good at all the
criterions and bad at any specific one, the supervisor might appraise him bad at all three. This
can happen for good comments also.
Central tendency: some supervisors never prefer to appraise excellent good or bad. They
always try giving average points to the employees. This makes a cloudy situation to decide
whether he should get promoted or not.
Biasness: there is a intese interpersonal nature of the appraisal process. When personal
preferences effects on the appraisal it is called biasness which can lead to a useless
performance appraisal for the company.
Guidelines to appraise: for an effective appraisal one needs tofollow five methods.
Know the problems: the supervisors must know what kind of problems can be occurred during
a performance appraisal.
Use the right tool: supervisors must use the given standard and the techniques from HRD.
Keep a diary: the supervisors should take a note on each employee on a weekly basis so that
they don’t forget any good or bad deeds after a year long.
Get agreement on a plan: supervisors need to consult with the employee while appraising him.
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He should be given chances to claim himself as better. If both agrees then an appraisal becomes
worthy.
Be fair: no kind of biasness should be in the supervisors’ mind. They are committed to give what
one deserves.
Paying an employee for his works done is called compensation policy. This policy has some
issues generated as paying for performance, seniority, pay cycle, salary increase, probationary
payments, compensations and many others. The policy needs to follow an equity form.
There are basic 4 forms of equity which is must to be considered before designing a company’s
salary structure.
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External equity: comparing the salary structure with the local competitors’ structure.
Internal equity: ensuring the parity between different job roles’ payment structure within the
same organization.
Individual equity: ensuring the similar salary structure plan for the same job roles.
Procedural equity: it depends on the perception of the employees. If the employees are
satisfied with the structure, this equity is present there.
Steps to design a company’s salary structure:
Let us suppose there is a company X in the city. Its competitors are P and Q
In company X there are 4 job roles. Job role 1 and 3 is in grade 1. Job role 2 and 4 is in grade 2.
Job x p q
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Minimu Averag Maximu Minimu Averag Maximu Minimu Averag Maximu
m e m m e m m e m
offered offere offered offered offere offered offered offere offered
d d d
1 20000 22500 25000 22000 24500 27000 25000 26000 27000
2 35000 37500 40000 30000 32500 35000 33000 36000 39000
3 60000 62500 65000 62000 64000 66000 58000 60000 62000
4 62000 65000 68000 50000 54000 58000 52000 56000 60000
For grade 1: