Terminologies

Job specification:
A document that outlines the minimum acceptable qualifications a person should
possess to perform a particular job.
Performance appraisal :-
Evaluating an employee’s current and / or past performance relative to his or her
performance standards.
Performance management :-
The continuous process of identifying, measuring, and developing the performance
of individuals and teams and aligning their performance with the organization’s
goal.
Transfer of training:
Training evaluation method focusing on the extent to which an employee
generalizes knowledge and skill learned in training to the work place, as well as
maintains the level of skill proficiency or knowledge learned in training.
360-degree feedback evaluation method:
Popular performance appraisal method that involves evaluation input from multiple
levels within the firm as well as external sources.
Succession planning:
Process of ensuring that qualified persons are available to assume key managerial
positions once the positions are vacant.
Promotion:
Movement of a person to a higher-level position in an organization
line managers :-
Individuals directly involved in accomplishing the primary purpose of the
organization.
Orientation:
Initial training and development effort for new employees that informs them about
the company, the job, and the work group.
Labor market:
Potential employees located within the geographic area from which employees are
recruited. External supply pool from which employers attract employees.
Job description:
Document that provides information regarding the essential tasks, duties, and
responsibilities of a job.
Job design:
Process of determining the specific tasks to be performed, the methods used in
performing these tasks, and how the job relates to other work in an organization.
Job:
Group of tasks that must be performed for an organization to achieve its goals.
Job analysis:
Systematic process of determining the skills, duties, and knowledge required for
performing jobs in an organization.
Human resource planning (workforce planning) :-
Systematic process of matching the internal and external supply of people with job
openings anticipated in the organization over a specified period of time.
Equal Employment Opportunity (EEO):-
The set of laws and policies that requires all individuals’ rights to equal
opportunity in the workplace, regardless of race, color, sex, religion, national
origin, age, or disability.
Case study:
Training and development method in which trainees are expected to study the
information provided in the case and make decisions based on it
Staff manager :-
A manager who assists and advises line managers.
Compensation: Total of all rewards provided employees in return for their
services.
Compensation policy: Policies that provide general guidelines for making
compensation decisions.
Career: General course that a person chooses to pursue throughout his or her
working life.
Career development: Formal approach used by the organization to ensure that
people with the proper qualifications and experiences are available when needed.
Career path: A flexible line of movement through which a person may travel
during his or her work life.
Career planning: Ongoing process whereby an individual sets career goals and
identifies the means to achieve them.
Recruitment :-
Process of seeking and attracting a pool of people from which qualified candidates
for job vacancies can be chosen.
Human resource management :-
Human Resource Management (HRM or HR) is the management of human
resources. It is designed to maximize employee performance in service of an
employer's strategic objectives. HR is primarily concerned with the management of
people within organizations, focusing on policies and on systems.
OR
Activities designed to provide for and coordinate the human resources of an
organization.
OR
Utilization of individuals to achieve organizational objectives.
Supervisor :-
Person in the first-line management who monitors and regulates employees in their
performance of assigned or delegated tasks. Supervisors are usually authorized to
recommend and/or effect hiring, disciplining, promoting, punishing, rewarding,
and other associated activities regarding the employees in their departments.
upervisors ensure that job descriptions accurately record the primary
responsibilities, qualifications and terms for each job role in their group.
Leadership :-
Leadership is an interpersonal influence directed toward the achievement of a goal
or goals.
Manager :-
person responsible for controlling or administering an organization or group of
staff.
human resource generalist :-
Person who devotes a majority of working time to human resource issues, but does
not specialize in any specific areas.
human resource specialist :-
Person specially trained in one or more areas of human resource management (e.g.,
labor relations specialist, wage and salary specialist).
operating manager :-
Person who manages people directly involved with the production of an
organization’s products or services (e.g., production manager in a manufacturing
plant, loan manager in a bank).

Functions of the HR Manager

A line function – The HR manager directs the activities of the people in his or her
own department and in related service areas (like the plant cafeteria).
A coordinative function – HR managers also coordinate personnel activities, a
duty often referred to as functional control.
Staff (assist and advise) functions – Assisting and advising line managers is the
heart of the HR manager’s job.
Who does human resource work ? / Who perform HR functions ?
Most managers are periodically involved to some extent in each of the major
human resource functions. For example, at one time or another, almost all
managers are involved in some aspect of employee recruiting, selecting, training,
developing, compensation, team building, and evaluation. In small organizations,
most human resource functions are performed by the owner or by operating
managers. These managers perform the human resource functions in addition to
their normal managerial activities. Many medium-size and even some large
organizations use human resource generalists. A human resource generalist devotes
a majority of his or her working time to human resource issues, but does not
specialize in any specific areas of human resource management. Large
organizations usually have a human resource department that is responsible for
directing the human resource functions. In addition to one or more human resource
generalists, such a department is normally staffed by one or more human resource
specialists. These specialists are trained in one or more specific areas of human
resource management. However, even in large organizations that have a human
resource department with many human resource generalists and specialists, most
operating managers must regularly perform and be involved with many of the
human resource functions.
Staff role of the HR department.
Staffing :-
It is the process of filling positions/position the organization with adequate and
qualified personnel .
OR
Staffing is defined as filling and keeping filled, positions in the organisation.
OR
Process through which an organization ensures that it always has the proper
number of employees with the appropriate skills in the right jobs, at the right time,
to achieve organizational objectives
Staffing functions :-
Recruitment, selection and orientation.

Human Resource functions :-

Tasks and duties human resource managers perform (e.g., determining the
organization’s human resource needs; recruiting, selecting, developing, counseling,
and rewarding employees; acting as liaison with unions and government
organizations; and handling other matters of employee well-being).

OR
Human resource functions refer to those tasks and duties performed in both large
and small organizations to provide for and coordinate human resources. Human
resource functions encompass a variety of activities that significantly influence all
areas of an organization. The Society for Human Resource Management (SHRM)
has identified six major functions of human resource management:
1. Human resource planning, recruitment, and selection. 2. Human resource
development. 3. Compensation and benefits. 4. Safety and health. 5.
Employee and labor relations. 6. Human resource research.
Performance management (PM) :-
Goal-oriented process directed toward ensuring that organizational processes are in
place to maximize the productivity of employees, teams, and ultimately, the
organization.
Human Resource Research :-
Although human resource research is not a distinct HRM function, it pervades all
functional areas, and the researcher’s laboratory is the entire work environment.
• Providing a human resource information base.
• Designing and implementing employee communication systems
Employee and Labor Relations :-
It assists with general management regarding developing, maintaining and
improving employee relationships via communication, performance management
etc.
• Serving as an intermediary between the organization and its union(s).
• Designing discipline and grievance handling systems.
Compensation and Benefits :-
• Designing and implementing compensation and benefit systems for all
employees.
• Ensuring that compensation and benefits are fair and consistent.

human resource development (HRD) :-

Major HRM functions consisting not only of training and development but also of
individual career planning and development activities, organization development,
and performance management and appraisal.
• Orienting and training employees. • Designing and implementing management
and organizational development programs. • Building effective teams within the
organization structure. • Designing systems for appraising the performance of
individual employees. • Assisting employees in developing career plans.
direct financial compensation (core compensation) :-
Pay that a person receives in the form of wages, salary, commissions, and bonuses.
indirect financial compensation (employee benefits) :-
All financial rewards that are not included in direct financial compensation.
nonfinancial compensation :-
Satisfaction that a person receives from the job itself or from the psychological
and/or physical environment in which the person works.
safety :-
Protection of employees from injuries caused by work-related accidents.
health :-
Employees’ freedom from physical or emotional illness.
• Designing and implementing programs to ensure employee health and safety. •
Providing assistance to employees with personal problems that influence their
work performance.
Job design
Job design is the process of formation of structure to work activities. This is a
systematic process of organizing specific job. It is thus, the logical sequence of job
analysis which provides the job related data and skill requirement of the
incumbent.
OR
Process of structuring work and designating the specific work activities of an
individual or group of individuals to achieve certain organizational objectives.
Job analysis :-
Process of determining and reporting pertinent information relating to the nature of
a specific job.
OR
The procedure of determining the duties and skill requirements of a job and the
kind of person who should be hire for this.
Job description;-
A job description concentrates on the job. It explains what the job is and what the
duties, responsibilities, and general working conditions are.
Writing Job Descriptions :-
The most important product of job analysis is the job description. A job description
is a written statement of what the worker actually does, how he or she does it, and
what the job’s working conditions are. You use this information to write a job
specification; this lists the knowledge, abilities, and skills required to perform the
job satisfactorily.
There is no standard format for writing a job description. However, most
descriptions contain sections that cover: 1. Job identification 2. Job summary 3.
Responsibilities and duties 4. Authority of incumbent 5. Standards of performance
6. Working conditions 7. Job specification.
 the job identification :- section (on top) contains several types of
information.The job title specifies the name of the job, such as supervisor of
data processing operations, or inventory control clerk.

 Job Summary :-
The job summary should summarize the essence of the job, and include only its
major functions or activities.
 Standards of Performance and Working Conditions :-
A “standards of performance” section lists the standards the company expects the
employee to achieve for each of the job description’s main duties and
responsibilities.
 Relationships :- There may be a “relationships” statement that shows the
jobholder’s relationships with others inside and outside the organization. For
a human resource manager, such a statement might say:
Reports to: Vice president of employee relations.
Supervises: Human resource clerk, test administrator, labor relations director, and
one secretary.
Works with: All department managers and executive management.
Outside the company: Employment agencies, executive recruiting firms, union
representatives, state and federal employment offices, and various vendors
 Responsibilities and Duties :- This is the heart of the job description. It
should present a list of the job’s significant responsibilities and duties.
job specification :-
A job specification concentrates on the characteristics needed to perform the job.
It describes the qualifications the incumbent must possess to perform the job.
Writing Job Specifications :-
The job specification takes the job description and answers the question, “What
human traits and experience are required to do this job effectively?” It shows what
kind of person to recruit and for what qualities you should test that person.
 Specifications for Trained versus Untrained Personnel :-
Writing job specifications for trained and experienced employees is relatively
straightforward. Here job specifications tend to focus on factors such as length of
previous service, quality of relevant training, and previous job performance. The
problems are more complex when you’re filling jobs with untrained people (with
the intention of training them on the job).
 Job Specifications Based on Statistical Analysis :-
Basing job specifications on statistical analysis rather than only judgment is the
more defensible approach, but it’s also more difficult. The aim here is to determine
statistically the relationship between (1) some predictor (human trait such as
height, intelligence, or finger dexterity), and (2) some indicator or criterion of job
effectiveness, such as performance as rated by the supervisor.
 Specifications Based on Judgment :-
Most job specifications simply reflect the educated guesses of people like
supervisors and human resource managers. The basic procedure here is to ask,
“What does it take in terms of education, intelligence, training, and the like to do
this job well?”
Types of information via job analysis :-
 Work activities :-
First, he or she collects the information about the job’s actual work activities such
as cleaning, selling, teaching, or painting. This list also may include how, why ,
and when the worker performs each other.
 Human behavior :-
The specialist may also collect information about the human behaviors the job
requires, like sensing, communicating, deciding, and writing.
 Machines, tools , equipment, and work aids :-
This include information regarding tools used, material processed, knowledge dealt
with or applied (such as finance or law), and services rendered ( such as counseling
or repairing).
 Performance standards :-
The employer also want the information about the job’s performance standards ( in
term of quantity or quality levels for each job duty, for instance). Management may
use these standards to appraise employees.

 Job context :-
Here is information about such matters as physical working conditions, work
schedule, and the organizational or social context – for example, the number of
people with whom the employee would normally interact. Information regarding
incentives might also be included there.
 Human requirements :-
Include information regarding the job’s human requirements, such as job related
knowledge or skills (education, training , work experience) and required personal
attributes ( aptitude, physical characteristics, personality, interest).
Uses of job analysis information :-
Recruitment and selection :- Information about what duties the job entails and
what human characteristics are required to perform these duties helps managers
decide what sort of people to recruit and hire.
EEO compliance :- Job analysis is crucial for validating all major human
resources practices. For example, to comply with the Americans with Disabilities
Act, employers should know each job’s essential job functions—which in turn
requires a job analysis.
Performance appraisal:- A performance appraisal compares each employee’s
actual performance with his or her duties and performance standards. Managers
use job analysis to learn what these duties and standards are.
Compensation :- Compensation (such as salary and bonus) usually depends on the
job’s required skill and education level, safety hazards, degree of responsibility,
and so on—all factors you assess through job analysis.
Training :- The job description lists the job’s specific duties and requisite skills—
thus pinpointing what training the job requires.
Conducting a Job Analysis
There are six steps in doing a job analysis of a job, as follows.
Step 1: Decide How You Will Use the Information Some data collection
techniques— like interviewing the employee—are good for writing job
descriptions. Other techniques, like the position analysis questionnaire we describe
later, provide numerical ratings for each job; these can be used to compare jobs for
compensation purposes.
Step 2: Review Relevant Background Information About the Job, Such as
Organization Charts and Process Charts8 It is important to understand the job’s
context. For example, organization charts show the organization wide division of
work, and where the job fits in the overall organization. A process chart provides a
detailed picture of the workflow. Thus, in the process chart in Figure 4-3, the
quality control clerk should review components from suppliers, check components
going to the plant managers, and give information regarding the components’
quality to these managers. Finally, an existing job description may provide a
starting point for revising the job description.
 Information input from plant manager
 Components input from suppliers ( first 2 points make 3rd point)
 Job under study— Quality Control Clerk ( this point makes next two points.)
 Information output to plant manager regarding component quality
 Product quality output to plant manager
workflow analysis :- A detailed study of the flow of work from job to job in a
work process.
Benefits of job analysis
 Organizational structure and design :-
 Job analysis helps the organization to make suitable changes in the
organizational structure, so that it matches the needs and requirements of the
organization. Duties are either added or deleted from the job.
 Recruitment and selection :-
Job analysis provides information about what the job entails and what
human characteristics are required to perform these activities. This
 information, in the form of job descriptions and specifications, helps
management decide what sort of people to recruit and hire.

 Performance appraisal and training/development :- 

Based on the job requirements identified in the job analysis, the company
decides a training program. Training is given in those areas which will help
to improve the performance on the job. Similarly when appraisal is
conducted we check whether the employee is able to work in a manner in
which we require him to do the job.
 Promotions and transfer :-
 When we give a promotion to an employee we need to promote him on the
basis of the skill and talent required for the future job. Similarly when
we transfer an employee to another branch the job must be very similar to
what he has done before. To take these decisions we collect information
from job analysis.
 Career path planning :- 
Many companies have not taken up career planning for their employees.
This is done to prevent the employee from leaving the company. When we
plan the future career of the employee, information will be collected from
job analysis. Hence job analysis becomes important or advantageous.
 Labour relations :- 
When companies plan to add extra duties or delete certain duties from a job,
they require the help of job analysis, when this activity is systematically
done using job analysis the number of problems with union members reduce
and labour relations will improve.
 Health and safety :-
 Most companies prepare their own health and safety, plans and programs
based on job analysis. From the job analysis company identifies the risk
factor on the job and based on the risk factor safety equipments are
provided.

 Acceptance of job offer :-

When a person is given an offer/appointment letter the duties to be
performed by him are clearly mentioned in it, this information is collected
from job analysis, which is why job analysis becomes important.

Advantages of Job Analysis

1. Job analysis helps the personnel manager at the time of recruitment and
selection of right man on right job.
 2. It helps him to understand extent and scope of training required in that field.
3. It helps in evaluating the job in which the worth of the job has to be
evaluated.
4. In those instances where smooth work force is required in concern.
5. When he has to avoid overlapping of authority- responsibility relationship so
that distortion in chain of command doesn’t exist.
6. It also helps to chalk out the compensation plans for the employees.
7. It also helps the personnel manager to undertake performance appraisal
effectively in a concern.

Advantages of Job Description

1. It helps the supervisors in assigning work to the subordinates so that he can

guide and monitor their performances.
2. It helps in recruitment and selection procedures.
3. It assists in manpower planning.
4. It is also helpful in performance appraisal.
5. It is helpful in job evaluation in order to decide about rate of remuneration
for a specific job.
6. It also helps in chalking out training and development programmes.

Advantages of Job Specification

1. It is helpful in preliminary screening in the selection procedure.

2. It helps in giving due justification to each job.
3. It also helps in designing training and development programmes.
4. It helps the supervisors for counseling and monitoring performance of
employees.
5. It helps in job evaluation.
6. It helps the management to take decisions regarding promotion, transfers and
giving extra benefits to the employees.

Job analysis methods

 Interviews :-

An understanding of the job may also be gained through interviewing both the
employee and the supervisor. Usually, the analyst interviews the employee first,
helping him or her describe the duties performed. Then, the analyst normally
contacts the supervisor for additional information, to check the accuracy of the
information obtained from the employee, and to clarify certain points.

 Employee Recording :-

In some instances, job analysis information is gathered by having employees

describe their daily work activities in a diary or log. With this method, the problem
of employees exaggerating job importance may have to be overcome.

 Questionnaire Method :-

In this method the workers is given a questionnaire and he himself provides data
about himself and his job. This method is only good for workers who are not only
literate but can also express themselves well and not for low level workers lacking
writing skills. Also, the analysis of data obtained thus is very laborious and time
consuming.

 Motion Study Method :-

In this method, the speed of an individual worker in performing a particular job

and time consumed therein are both noted down. The same observations are made
for other individuals while doing the same job. Then the results obtained are
compared. Workers can be classified with the help of this type of study of speed
and time and the data can be used for job analysis.

 Observation :-

When using the observation method, the job analyst watches the worker perform
job tasks and records his or her observations. This method is used primarily to
gather information on jobs emphasizing manual skills, such as those of a machine
operator. It can also help the analyst identify interrelationships between physical
and mental tasks.

 Group Interview Method :-

In this method, a group of workers are interviewed simultaneously. By recalling

and discussing their work activities, they provide data about the job in question.
Time saved and greater recall is the advantages of this method.
Functional job analysis

Functional job analysis (FJA) is a job analysis method developed by the

Employment and Training Administration of the Department of Labor. FJA uses
standardized statements and terminology to describe the content of jobs. The
primary premises of FJA include the following :-

1. A fundamental distinction must be made between what gets done and what
employees do to get things done. For example, bus drivers do not carry passengers;
rather, they drive vehicles and collect fares.

2. Jobs are performed in relation to data, people, and things.

3. In relation to things, employees draw on physical resources; in relation to data,

employees draw on mental resources; and in relation to people, employees draw on
interpersonal resources.

FJA is a worker oriented job analysis approach that attempts to describe the whole
person on the job.

Who Performs the Functional Job Analysis ?

Generally there are 3 types of people who should be involved in the analysis,

 Human Resources
 Direct Supervisor
 Current or past employees who did the job.

Human resource planning :-

Human resource planning is a process that identifies current and future human
resources needs for an organization to achieve its goals. Human resource planning
should serve as a link between human resource management and the overall
strategic plan of an organization.

Reasons for human resource planning :-

1. Ensure adequate supply of manpower as and when required.

2. Ensure proper use of existing human resources in the organisation.

3. Forecast future requirements of human resources with different levels of skills.

4. Assess surplus or shortage, if any, of human resources available over a specified

period of time.

5. Anticipate the impact of technology on jobs and requirements for human

resources.

6. Control the human resources already deployed in the organisation.

7. Provide lead time available to select and train the required additional human
resource over a specified time period.

Significance Or Importance Of Human Resource Planning :-

Human resource planning aims at fulfilling the objectives of manpower

requirement. It helps to mobilize the recruited resources for the productive
activities. The human resource planning is and important process aiming to link
business strategy and its operation. The importance of human resource planning
are as follows :-

1. Future Manpower Needs :-

Human resource planning ensures that people are available to provide the
continued smooth operation of an organization. It means, human resource planning
is regarded as a tool to assure the future availability of manpower to carry on the
organizational activities. It determines the future needs of manpower in terms of
number and kind.

2. Coping With Change :-

Human resource planning is important to cope with the change associated with the
external environmental factors. It helps assess the current human resources through
HR inventory and adapts it to changing technological, political, socio-cultural, and
economic forces.

3. Recruitment Of Talented Personnel :-

Another purpose of HR planning is to recruit and select the most capable personnel
to fill job vacancies.It determines human resource needs, assesses the available HR
inventory level and finally recruit the personnel needed to perform the job.
4. Development Of Human Resources :-

Human resource planning identifies the skill requirements for various levels of
jobs. Then it organizes various training and development campaigns to impart the
required skill and ability in employees to perform the task efficiently and
effectively.

5. Proper Utilization Of Human Resources :-

Human resource planning measures that the organization acquires and utilizes the
manpower effectively to achieve objectives. Human resource planning helps in
assessing and recruiting skilled human resource. It focuses on the optimum
utilization of human resource to minimize the overall cost of production.

6. Uncertainty Reduction :-

This is associated with reducing the impact of uncertainty which are brought by
unsudden changes in processes and procedures of human resource management in
the organization.

Human Planning Process :-

 Review Organizational HR Strategic Plans

 Assess External and Internal Workforce
-External conditions and influences
-Internal workforce capabilities and KSAs
 Compile HR Planning Forecasts
-Demands for human resources
-Supply of human resources
 Develop HR Staffing Plans and Action
-Employee retention and turnover utilization
-Recruiting sources and means
-Selection process and actions
The steps in the HR planning process. Notice that the process begins with
considering the organizational strategic planning objectives. Then the possible
available workforce must be evaluated by identifying both the external and internal
workforce. Once those assessments are complete, forecasts must be developed to
identify both the demand for and supply of human resources. Management then
formulates HR staffing plans and actions to address imbalances, both short term
and long-term. One means of developing and measuring HR planning is use of a
team of subject matter experts (SMEs) to increase the validity and reliability of the
HR planning results.7 Specific strategies may be developed to fill vacancies or deal
with surplus employees. For example, a strategy might be to fill 50% of expected
vacancies by training employees in lower-level jobs and promoting them into more
advanced anticipated openings. Finally, HR plans are developed to provide specific
direction for the management of HR activities related to employee recruiting,
selection, and retention. The most telling evidence of successful HR planning is a
consistent alignment of the availabilities and capabilities of human resources with
the needs of the organization over shorter or longer periods of time.
OR
HRP consists of four basic steps:
1. Determining the impact of the organization’s objectives on specific
organizational units.
2. Defining the skills, expertise, and total number of employees (demand for
human resources) required to achieve the organizational and departmental
objectives.
3. Determining the additional (net) human resource requirements in light of the
organization’s current human resources.
4. Developing action plans to meet the anticipated human resource needs.
human resource plans must be based on organizational strategic plans. In practice,
this means the objectives of the human resource plan must be derived from
organizational objectives. Specific human resource requirements in terms of
numbers and characteristics of employees should be derived from the objectives of
the entire organization. Organizational objectives, which give the organization and
its members direction and purpose, should be stated in terms of expected results.
The objective-setting process begins at the top of the organization with a statement
of mission, which defines the organization’s current and future business. Long-
range objectives and strategies are formulated based on the organization’s mission
statement. These can then be used to establish short-term performance objectives.
Short-term performance objectives generally have a time schedule and are
expressed quantitatively. Divisional and departmental objectives are then derived
from the organization’s short-term performance objectives. Establishing
organizational, divisional, and departmental objectives in this manner has been
called the cascade approach to objective setting.
cascade approach :-
Objective-setting process designed to involve all levels of management in the
organizational planning process.

TOOLS AND TECHNIQUES OF HRP

Many tools are available to assist in the human resource planning process. The
skills inventory discussed earlier is one of the most frequently used human
resource planning tools. A second useful tool is succession planning. Succession
planning identifies specific people to fill key positions throughout the organization.
Succession planning almost always involves the use of a replacement chart. While
many variations exist, a basic organization replacement chart shows both
incumbents and potential replacements for given positions. Commitment
manpower planning (CMP) is a relatively recent approach to human resource
planning designed to get managers and their employees thinking about and
involved in HRP. In addition to encouraging managers and employees to think
about human resource planning, CMP provides a systematic approach to human
resource planning. CMP generates three reports that supply the following
information: (1) the supply of employees and the promotability and placement
status of each; (2) the organization’s demand, arising from new positions and
turnover and projected vacancies for each job title; and (3) the balance or status of
supply versus demand, including the name, job, and location of all those suitable
for promotions.
Succession planning :-
Technique that identifies specific people to fill future openings in key positions
throughout the organization.
organization replacement chart :-
Chart that shows both incumbents and potential replacements for given positions
within the organization.
Managerial Judgement - Managers discuss and arrive at a figure of inflows &
outflows which would cater to future labour demand.
Work-Study Technique - Used when length of operations and amount of labour
required can be calculated.
commitment manpower planning (CMP) :-
A systematic approach to human resource planning designed to get managers and
their subordinates thinking about and involved in human resource planning.

ratio analysis :-
A tool used in human resource planning to measure the organization’s human
resource vitality as indicated by the presence of promotable personnel and existing
backups.
Delphi Technique - From a group of experts the personnel needs are estimated.
THE STAFFING MANAGEMENT PLAN :-
which is a subset of the project management plan, describes when and how human
resource requirements will be met. It may be formal or informal, detailed or
broadly based on the needs of the project. It is continually updated during the
project. The staffing management plan includes necessary time frames for project
team members and acquisition activities.
Internal sources of Recruitment
 Transfers:
Transfer involves shifting of persons from present jobs to other similar jobs. These
do not involve any change in rank, responsibility or prestige. The numbers of
persons do not increase with transfers.
Promotion :-
Promotions refer to shifting of persons to positions carrying better prestige, higher
responsibilities and more pay. The higher positions falling vacant may be filled up
from within the organisation. A promotion does not increase the number of persons
in the organisation.
Employee Referrals: 
The present employees can refer their friends and family to the job. They are well
aware of the organizational culture, working conditions and job requirements. If
they find their friends or family suitable for such position can recommend their
names to the management for recruitment.
Employees of the organization :-
Employees of the organization communicate or inform about the vacant positions
of the organization to their friends and relatives. In many organizations, they
allowed referring potential candidates for the suitable vacancies.
Retired employees :-
If the organizations do not find the right persons to fulfill the key managerial
positions then they call back the retired employees for achieving the objectives.
job posting and bidding :-
A method of informing employees of job vacancies by posting a notice in central
locations and giving a specified period to apply for the job.
External sources of Recruitment
Placemat agencies :-
Several private consultancy firms perform recruitment functions on behalf of client
companies by charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists. It is also known as RPO (Recruitment
Process Outsourcing)
job advertising
The placement of help wanted advertisements in daily newspapers, in trade and
professional publications, or on radio and television.
campus recruiting :-
Recruitment activities of employers on college and university campuses
employee leasing companies and PEOs (professional employer
organizations) :-
provide permanent staff at customer companies, issue the workers’ paychecks, take
care of personnel matters, ensure compliance with workplace regulations, and
provide various employee benefits
Temporary Help :-
Agencies and Employee Leasing Companies One of the fastest-growing areas of
recruitment is temporary help hired through employment agencies. The agency
pays the salary and benefits of the temporary help; the organization pays the
employment agency an agreed-upon figure for the services of the temporary help.
The use of temporary help is not dependent on economic conditions.
Employment Agencies :-
Both public and private employment agencies can be helpful in recruiting new
employees.
Social networking sites :-
Communicating about vacant positions of the organization through social
networking sites help in motivation and attracting the highly skilled and more
efficient candidates to apply for the jobs.
Recruitment and Selection / Testing and Interview :-
Recruitment process :-
recruitment begins when a manager initiates an employee requisition, a
document that specifies job title, department, the date the employee is
needed for work, and other details. With this information, managers can
refer to the appropriate job description to determine the qualifications
the recruited person needs. The next step in the recruitment process is to
determine whether qualified employees are available within the firm (the
internal source) or if it is necessary to look to external sources, such as
colleges, universities, and other organizations. Because of the high cost
of recruitment, organizations need to use the most productive
recruitment sources and methods available. recruitment sources are
where qualified candidates are located, such as colleges or competitors.
recruitment methods are the specific means used to attract potential
employees to the firm, such as online recruiting. Identifying productive
sources of applicants and using suitable recruitment methods are
essential to maximizing recruiting efficiency and effectiveness. When a
firm identifies the sources of candidates, it uses appropriate methods for
either internal or external recruitment to accomplish recruitment
objectives. A candidate responds to the firm’s recruitment efforts by
submitting professional and personal data on either an application for
employment or a résumé, depending on the company’s policy.
Companies may discover that some recruitment sources and methods are
superior to others for locating and attracting potential talent. Smart
recruiters want to post their job where the best prospects are likely to be.
Internal Recruitment Methods Management should be able to identify
current employees who are capable of filling positions as they become
available. Helpful tools used for internal recruitment include human
resource databases, job postings and job bidding, and employee
referrals.
Human Resource Databases Human resource databases permit
organizations to determine whether current employees possess the
qualifications for filling open positions. As a recruitment device, these
databases have proven to be extremely valuable to organizations.
Databases can be valuable in locating talent internally and supporting
the concept of promotion from within.
Job Posting and Job Bidding job posting is a procedure for informing
employees that job openings exist. job bidding is a procedure that
permits employees who believe that they possess the required
qualifications to apply for a posted job. Hiring managers usually want to
give internal candidates priority as a way to improve employees’
attitudes and stimulate their interest in the company. The job posting and
bidding procedures can help minimize the commonly heard complaint
that insiders never hear of a job opening until it is filled.
Employee Referrals employee referrals involve an employee of the
company recommending a friend or associate as a possible member of
the company; this continues to be the way that top performers are
identified.
external recruitment sources At times, a firm must look beyond its
own borders to find employees, particularly when expanding its
workforce. External recruitment is needed to (1) fill entry-level jobs; (2)
acquire skills not possessed by current employees; and (3) obtain
employees with different backgrounds to p rovide a diversity of ideas
High Schools and Vocational Schools Organizations concerned with
recruiting clerical and other entry-level employees often depend on high
schools and vocational schools. Many of these institutions have
outstanding training programs for specific occupational skills, such as
home appliance repair and small engine mechanics.
Community Colleges Many community colleges are sensitive to the
specific employment needs in their local labor markets and graduate
highly sought-after students with marketable skills.
Unemployed The unemployed often provide a valuable source of
recruits. Qualified applicants join the unemployment rolls every day for
various reasons. Companies may downsize their operations, go out of
business, or merge with other firms, leaving qualified workers without
jobs.
Military Personnel Hiring former service members makes sense to a lot
of employers because many of these individuals have a proven work
history and are flexible, motivated, and drug-free.
Former employees The advantage of tracking former employees is that
the firm knows their strengths and weaknesses and the ex-employees
know the company. Tracking, recruiting, and hiring a former employee
can be a tremendous benefit and can encourage others to stay with the
firm.
Self-Employed Workers The self-employed worker may also be a good
potential source. These individuals may be true entrepreneurs who are
ingenious and creative. For many firms, these qualities are essential for
continued competitiveness.
Ex-Offenders Some organizations have found it beneficial to hire ex-
offenders.

Selection process :-
Placement means Fitting a person to the right job.
Applicant Job Interest :-Individuals wanting employment can indicate
interest in a number of ways. Traditionally, individuals have submitted
résumés by mail or fax, or applied in person at an employer’s location.
But with the growth in Internet recruiting, many individuals complete
applications online or submit résumés electronically.
Preemployment Screening:- Many employers conduct preemployment
screening to determine if applicants meet the minimum qualifications for
open jobs before they have the applicants fill out an application.
Realistic job preview :- Process through which a job applicant receives
an accurate picture of a job.
Application forms, which are used universally, can take on different
formats. Properly prepared, the application form serves four purposes:
1. It is a record of the applicant’s desire to obtain a position.
2. It provides the interviewer with a profile of the applicant that can be
used during the interview.
3. It is a basic employee record for applicants who are hired.
4. It can be used for research on the effectiveness of the selection
process.
Labor market
Labor markets are the external supply pool from which employers attract
employees.
Labour market components :-
Labor Market Components Several different means of identifying labor
markets exist. One useful approach is to take a broad view of the labor
markets and then narrow them down to specific recruiting sources
Labor force population :-
All individuals who are available for selection if all possible recruitment
strategies are used.
Applicant population :-
A subset of the labor force population that is available for selection
using a particular recruiting approach.
Applicant pool :-
All persons who are actually evaluated for selection . It is important to
develop an applicant tracking system when considering the applicant
pool. Using such a system, both administratively and electronically, can
make the recruiting process more effective.
Unemployment Rates and Applicant Population :-
When the unemployment rate is high in a given market, many people are
looking for jobs. When the unemployment rate is low, there are fewer
applicants. Unemployment rates vary with business cycles and present
very different challenges for recruiting at different times.
Different Labor Markets and Recruiting :-
The supply of workers in various labor markets differs substantially and
affects staffing. Organizations recruit in a number of different labor
markets, including industry-specific markets and occupational,
educational and technical, and geographic markets. Labor markets can
be viewed in several ways to provide information that is useful for
recruiting.
Industry and Occupational Labor Markets :-
Labor markets can be classified by industry and occupation. Depending
on economic and industry aspects, recruiting emphases can be changed.
Geographic Labor Markets:-
One common way to classify labor markets is based on geographic
location. Markets can be local, area or regional, national, or
international. Local and area labor markets vary significantly in terms of
workforce availability and quality, and changes in a geographic labor
market may force changes in recruiting efforts
Educational and Technical Labor Markets :-
Another way to look at labor markets is by considering the educational
and technical qualifications that define the people being recruited.
Global Labor Markets :-
The use of the Internet has resulted in global jobs being recruited in
many places, but often recruiting employees for global assignments
requires different approaches from those used for typical recruiting
efforts in the home country. The recruiting processes must consider
variations in culture, laws, and language.
Considerations for Determining Applicant Populations :-
 Number and type of recruits needed
 Timing of recruiting to ensure timely placement
 External and internal messages on job details
 Qualifications of competent applicants to be considered
 Sources for obtaining qualified applicants
 Outside and inside recruiting means to be used
 Administrative recruiting and application review activities
Recruitment and selection process :-
The recruiting and selecting process :-
1. Decide what positions to fill, through workforce/personnel planning and
forecasting.
2. Build a pool of candidates for these jobs, by recruiting internal or external
candidates.
3. Have candidates complete application forms and perhaps undergo initial
screening interviews.
4. Use selection tools like tests, background investigations, and physical exams to
screen candidates.
5. Decide who to make an offer to, by having the supervisor and perhaps others
interview the candidates.
Selection procedure
Validation of Selection Procedures :-
The selection decision requires the decision maker to know what
distinguishes successful performance from unsuccessful performance in
the available job and to forecast a person’s future performance in that
job.
criteria of job success :- Ways of specifying how successful
performance of the job is to be measured.
criterion predictors :- Factors such as education, previous work
experience, and scores on tests that are used to predict successful
performance of a job.
validity :- Refers to how accurately a predictor actually predicts the
criteria of job success
predictive validity :- Validity established by identifying a predictor,
administering it to applicants, hiring without regard to scores, and later
correlating scores with job performance.
concurrent validity :- Validity established by identifying a predictor,
administering it to current employees, and correlating the test data with
the current employee’s job performance.
construct validity :- The extent to which a selection criterion measures
the degree to which job candidates have identifiable characteristics
determined to be important for successful job performance.
Testing : Interview
A selection interview (the focus of this chapter) is a selection procedure
designed to predict future job performance based on applicants’ oral
responses to oral inquiries.
structured interview :- An interview conducted according to a
predetermined outline.
unstructured interview :- An interview conducted without a
predetermined checklist of questions.
stress interview :- Interview method that puts the applicant under
pressure, to determine whether he or she is highly emotional.
board or panel interviews :- Interview method in which two or more
people conduct an interview with one applicant.
Behavioral interview :- Interview in which applicants give specifi c
examples of how they have performed a certain task or handled a
problem in the past.
Situational interview :- Structured interview that contains questions
about how applicants might handle specifi c job situations.
Nondirective interview :- Interview that uses questions developed from
the answers to previous questions.
group interview :- Interview method in which several applicants are
questioned together.
Who Conducts Interviews ?
Job interviews can be conducted by an individual, by several individuals
sequentially, or by panels or teams.
Problems in Conducting Interviews
halo effect Occurs when managers allow a single prominent
characteristic of the employee to influence their judgment on several
items of a performance appraisal.
Conducting Effective Interviews :-
1. Give careful attention to the selection and training of interviewers.
Interviewers should be outgoing and emotionally well-adjusted
persons.
2. The facts obtained in the interview should be recorded in writing
immediately after the interview.
3. Finally, evaluate the effectiveness of the interviewing process. One
way to evaluate effectiveness is to compare the performance
appraisals of hired individuals to assessments made during the
interview

Recruitment and selection policy issues.

Orientation :-
The introduction of new employees to the organization, work unit, and
job.
Employees receive orientation from their coworkers, and from the
organization. The orientation received from coworkers is usually
unplanned and unofficial, and it often provides the new employee with
misleading and inaccurate information
departmental and job orientation :- Specific orientation that describes
topics unique to the new employee’s specific department and job.
organizational orientation :- General orientation that presents topics of
relevance and interest to all employees.
orientation kit :- A supplemental packet of written information for new
employees.
Some materials that might be included in an orientation kit include
 Company organization chart.
 Map of the company’s facilities.
 Copy of policy and procedures handbook.
 List of holidays and fringe benefits.
 Copies of performance appraisal forms, dates, and procedures.
 Copies of other required forms (e.g., expense reimbursement
form).
 Emergency and accident prevention procedures.
 Sample copy of company newsletter or magazine.
 Telephone numbers and locations of key company personnel (e.g.,
security personnel).
 Copies of insurance plans.
 employee orientation A procedure for providing new employees
with basic background information about the firm.
Purpose of onboarding/employee orientation :-
1. Make the new employee feel welcome and at home and part of the
team.
2. 2. Make sure the new employee has the basic information to
function effectively, such as e-mail access, personnel policies and
benefits, and expectations in terms of work behavior.
3. 3. Help the new employee understand the organization in a broad
sense (its past, present, culture, and strategies and vision of the
future).
 4. 4. Start socializing the person into the firm’s culture and ways of
doing things.
The Orientation Process
The length of the orientation program depends on what you cover. Most
take several hours. The human resource specialist (or, in smaller firms,
the office manager) performs the first part of the orientation by
explaining basic matters like working hours and benefits. Then the
supervisor continues the orientation by explaining the department’s
organization, introducing the person to his or her new colleagues,
familiarizing him or her with the workplace, and reducing first-day
jitters. At a minimum, the orientation should provide information on
matters such as employee benefits, personnel policies, safety measures
and regulations, and a facilities tour;5 new employees should receive
(and sign for) print or Internet-based employee handbooks covering such
matters.
Orientation length and timing
It is virtually impossible for a new employee to absorb in one long
session all of the information in the company orientation program. Brief
sessions, not to exceed two hours, spread over several days, increase the
likelihood that the new employee will understand and retain the
information presented. Too many organizations conduct a perfunctory
orientation program lasting for a half day or full day. Programs of this
nature can result in a negative attitude on the part of new employees.
Departmental orientations should also be brief and spread over several
days. Job orientations should be well planned and conducted using
appropriate techniques.

Orientation evaluation :-
The new employee should not be told to drop by if any problems occur.
The manager should regularly check on how well the new employee is
doing and answer any questions that may have arisen after the initial
orientation.
The human resource department should also conduct an annual
evaluation of the total orientation program. The purpose of this
evaluation is to determine whether the current orientation program is
meeting the company’s and new employee’s needs and ascertain ways to
improve the present program. Feedback from new employees is one
method of evaluating the effectiveness of an organization’s orientation
program. Feedback can be obtained using the following methods:
 Unsigned questionnaires completed by all new employees.
 In-depth interviews of randomly selected new employees.
 Group discussion sessions with new employees who have settled
comfortably into their jobs.
Feedback of this type enables an organization to adapt its orientation
program to the specific suggestions of actual participants. Finally,
organizations should realize that new employees will receive an
orientation that has an impact on their performance—either from
coworkers or from the company. It is certainly in the best interest of the
company to have a well-planned, well-executed orientation program.
Training and development of employee
training :- A learning process that involves the acquisition of skills,
concepts, rules, or attitudes to enhance employee performance.
needs assessment :- A systematic analysis of the specific training
activities the organization requires to achieve its objectives.
Interviews with employees can be conducted by specialists in the human
resource department or by outside experts. Basic questions that should
usually be asked are as follows:
 1. What problems is the employee having in his or her job ?
2. What additional skills and/or knowledge does the employee need
to better perform the job ?
3. What training does the employee believe is needed ?
Methods of Training
on-the-job training (OJT) :-
Training that shows the employee how to perform the job and allows
him or her to do it under the trainer’s supervision. Training a person to
learn a job while working on it.
job rotation (cross training) :- Training that requires an individual to
learn several different jobs in a work unit or department and perform
each job for a specified time period.
Special Projects and Committee Assignments ;-
Special projects require the trainee to learn about a particular subject.
The trainee must also learn to work and relate to other employees.
Committee assignments, which are similar to special projects, can be
used if the organization has regularly constituted or ad hoc committees.
In this approach, an individual works with the committee on its regularly
assigned duties and responsibilities
programmed learning :-
A systematic method for teaching job skills, involving presenting
questions or facts, allowing the person to respond, and giving the learner
immediate feedback on the accuracy of his or her answers.

job instruction training (jiT) :-

Listing each job’s basic tasks, along with key points, in order to provide
step-by-step training for employees.
apprenticeship training :-
A structured process by which people become skilled workers through a
combination of classroom instruction and on-the-job training.
Experience :-
Many organizations use development through experience. With this
method, individuals are promoted into management jobs and allowed to
learn on their own from their daily experiences. The primary advantage
of this method is that the individual, in attempting to perform a specific
job, may recognize the need for management development and look for
a means of satisfying it.
Job rotation :- It is designed to give an individual broad experience
through exposure to many different areas of the organization. One
advantage of job rotation is that the trainees can see how management
principles can be applied in a cross section of environments. Also, the
training is practical and allows the trainee to become familiar with the
entire operation of the company.
understudy assignments :- Method of on-the-job training in which one
individual, designated as the heir to a job, learns the job from the present
jobholder.
coaching :- Method of management development conducted on the job
that involves experienced managers advising and guiding trainees in
solving managerial problems.

Off the job training

Role Playing :- In this method, participants are assigned different roles
and required to act out those roles in a realistic situation. The idea is for
the participants to learn from playing out the assigned roles.
University and Professional Association Seminars :- Many colleges
and universities offer both credit and noncredit courses intended to help
meet the management development needs of various organizations.
programmed instruction :- Method of classroom training in which
material is presented in text form or on computer video displays;
participants are required to correctly answer questions about the subject
presented before progressing to more advanced material.
web-based training :- Method of training in which material is presented
on computer video screens via either the Internet or company intranet;
participants are required to answer questions correctly before being
allowed to proceed.
business game :- Method of classroom training that simulates an
organization and its environment and requires a team of players to make
operating decisions based on the situation
in-basket technique :- Method of classroom training in which the
participant is required to simulate the handling of a specific manager’s
mail and telephone calls and to react accordingly.
incident method :- Form of case study in which learners are initially
given the general outline of a situation and receive additional
information from the instructor only as they request it
In classroom training, :- the most familiar type of training, several
methods can be used. Classroom training is used not only in
management development programs but also in the orientating and
training activities.
case study :- Method of classroom training in which the learner
analyzes real or hypothetical situations and suggests not only what to do
but also how to do it.
Lectures :- One of the most common methods of instruction is
lecturing, or teaching by the spoken word. Of course, lectures can
include other media such as transparencies, slides, videotapes, or
computer slides such as Power Point.
behavior modeling :- T&D method that permits a person to learn by
copying or replicating behaviors of others to show managers how to
handle various situations. The basic procedure is as follows:
1. Modeling :- First, trainees watch live or video examples showing
models behaving effectively in a problem situation. Thus, the video
might show a supervisor effectively disciplining a subordinate, if
teaching “how to discipline” is the aim of the training program.
2. Role-playing :- Next, the trainees get roles to play in a simulated
situation; here they are to practice the effective behaviors demonstrated
by the models.
3. Social reinforcement :- The trainer provides reinforcement in the form
of praise and constructive feedback.
4. Transfer of training :- Finally, trainees are encouraged to apply their
new skills when they are back on their jobs.
assessment center :- Formal method used in training and/or selection
and aimed at evaluating an individual’s potential as a manager by
exposing the individual to simulated problems that would be faced in a
real-life managerial situation.
Training evaluation
Evaluation of training can be broken down into four areas:
1. Reaction: How much did the trainees like the program?
2. Learning: What principles, facts, and concepts were learned in the
training program?
3. Behavior: Did the job behavior of the trainees change because of the
program?
4. Results: What were the results of the program in terms of factors such
as reduced costs or reduction in turnover
Reaction evaluation :- should consider a wide range of topics,
including program content, program structure and format, instructional
techniques, instructor abilities and style, the quality of the learning
environment, the extent to which training objectives were achieved, and
recommendations for improvement.
Learning evaluation :- concerns how well the trainees understood and
absorbed the principles, facts, and skills taught. In the teaching of skills,
classroom demonstrations by trainees are a fairly objective way to
determine how much learning is occurring.
Behavior evaluation :- deals with the nature of the change in job
behavior of the trainee and is much more difficult than reaction or
learning evaluation.
Results evaluation :- attempts to measure changes in variables such as
reduced turnover, reduced costs, improved efficiency, reduction in
grievances, and increases in quantity and quality of production.
Career Development.
career :- The occupational positions a person has had over many years.
career management :- The process for enabling employees to better understand
and develop their career skills and interests, and to use these skills and interests
more effectively.
career development :- An ongoing, formalized effort by an organization that
focuses on developing and enriching the organization’s human resources in light of
both the employees’and the organization’s needs.
career planning:- Process by which an individual formulates career goals and
develops a plan for reaching those goals.
Who Is Responsible for Career Development?
 The organization is the entity that has primary responsibility for instigating
and ensuring that career development takes place. Specifically, the
organization’s responsibilities are to develop and communicate career
options within the organization to the employee. The organization should
carefully advise an employee concerning possible career paths to achieve
that employee’s career goals.
 The primary responsibility for preparing individual career plans rests with
the individual employees. Career planning is not something one person can
do for another; it has to come from the individual. Only the individual
knows what she or he really wants out of a career, and certainly these desires
vary appreciably from person to person.
 the manager can and should play a key role in facilitating the development
of a subordinate’s career. First and foremost, the manager should serve as a
catalyst and sounding board. The manager should show an employee how to
go about the process and then help the employee evaluate the conclusions.
Reviewing Career Progress
Individual careers rarely go exactly according to plan. The environment changes,
personal desires change, and other things happen. However, if the individual
periodically reviews both the career plan and the situation, he or she can make
adjustments so that career development is not impaired. On the other hand, a career
plan that is not kept current rapidly becomes useless. Complacency is the greatest
danger once a career plan has been developed. The plan must be updated as the
situation and the individual change.
3 different techniques of career development
 mentoring :- Approach to advising, coaching, and nurturing for creating a
practical relationship to enhance individual career, personal, and
professional growth and development.
Arranges for employees to participate in a high-visibility activity either inside or
outside the organization. Serves as a role model in employee’s career development
by demonstrating successful career behaviors. Supports employee by
communicating employee’s effectiveness to others in and out of organization.
 coaching :- Method of management development conducted on the job,
which involves experienced managers advising and guiding trainees in
solving managerial problems.
Coach Teaches specific job-related or technical skills. Reinforces effective
performance. Suggests specific behaviors for improvement. Clarifies and
communicates goals and objectives of work group and organization.
 Counselor :- Helps employee identify career-related skills, interests, and
values. Helps employee identify a variety of career options. Helps employee
evaluate appropriateness of various options. Helps employee design/plan
strategy to achieve an agreed-on career goal.
Implementing Career Development
Individual Assessment :- Many people never stop to analyze their abilities,
interests, and career goals. An individual’s self-assessment should not necessarily
be limited by current resources and abilities; career plans normally require that the
individual acquire additional training and skills.
Assessment by the Organization :- The organization’s assessment of an
individual employee should normally be conducted jointly by human resource
personnel and the individual’s immediate manager, who serves as a mentor.
Communicating Career :- Options To set realistic career goals, an individual
must know the options and opportunities that are available. The organization can
do several things to facilitate such awareness. Posting and advertising job
vacancies is one activity that helps employees get a feel for their options.
Career Pathing :- career pathing A sequence of developmental activities
involving informal and formal education, training, and job experiences that help
make an individual capable of holding a more advanced job in the future.
Career Self-Management :- career selfmanagement The ability to keep up with
the changes that occur within the organization and industry and to prepare for the
future.
Career counseling is the activity that integrates the different steps in the career-
planning process. Career counseling may be performed by an employee’s
immediate manager, a human resource specialist, or a combination of the two.
Importance of career development
From the organization’s viewpoint, career development has three major
objectives:
• To meet the immediate and future human resource needs of the organization on a
timely basis.
• To better inform the organization and the individual about potential career paths
within the organization.
• To utilize existing human resource programs to the fullest by integrating the
activities that select, assign, develop, and manage individual careers with the
organization’s plans.
 Fostering Better Communication in Organization : The main objective of
designing a career development system is to foster better communication
within the organization as a whole. It promotes communication at all levels
of organizations for example manager and employee and managers and top
management. Proper communication is the lifeblood of any organization and
helps in solving several big issues.
 Assisting with Career Decisions: A career development system provides
employees as well as managers with helpful assistance with career decisions.
They get an opportunity to assess their skills and competencies and know
their goals and future aspirations. It helps them give a direction so that they
can focus on achieving their long term career goals.
 Better Use of Employee Skills: A career development system helps
organization make better use of employee skills. Since managers know their
 skills and competencies and therefore, can put them at a job where they will
be able to produce maximum output.
 Setting Realistic Goals: Setting realistic goals and expectations is another
main objective of a career development system. It helps both employees and
organization to understand what is feasible for them and how they can
achieve their goals.
 Creating a Pool of Talented Employees : Creating a pool of talented
employees is the main objective of organizations. After all, they need to
meet their staffing needs in present and future and a career development
system helps them fulfill their requirements.
 Enhancing the Career Satisfaction: Organizations especially design career
development systems for enhancing the career satisfaction of their
employees. Since they have to retain their valuable assets and prepare them
for top notch positions in future, they need to understand their career
requirements and expectations from their organization.
 Feedback: Giving feedback on every step is also required within an
organization to measure the success rate of a specific policy implemented
and initiatives taken by the organization. In addition to this, it also helps
managers to give feedback for employees’ performance so that they can
understand what is expected of them.
Dealing with Career Plateaus
 career plateau :- The point in an individual’s career where the
likelihood of an additional promotion is very low.
 learners :- Individuals in an organization who have a high
potential for advancement but are currently performing below
standard.
 stars :- Individuals in an organization who are presently doing
outstanding work and have a high potential for continued
advancement.
 solid citizens :- Individuals in an organization whose present
performance is satisfactory but whose chance for future
advancement is small.
  Deadwood :- Individuals in an organization whose present
performance has fallen to an unsatisfactory level and who have
little potential for advancement.

Performance
Degree of accomplishment of the tasks that make up an employee’s job.
Why Appraise Performance ? There are five reasons to appraise
subordinates’ performance.
●● First, most employers base pay, promotion, and retention decisions on the
employee’s appraisal.
●● Appraisals play a central role in the employer’s performance management
process. Performance management means continuously ensuring that each
employee’s performance makes sense in terms of the company’s overall goals.
●● The appraisal lets the manager and subordinate develop a plan for correcting
any deficiencies, and to reinforce the subordinate’s strengths.
●● Appraisals provide an opportunity to review the employee’s career plans in
light of his or her exhibited strengths and weaknesses.
●● Finally, appraisals enable the supervisor to identify if there is a training need,
and the remedial steps required.
performance appraisal process
A three-step appraisal process involving :-
(1) setting work standards
(2) assessing the employee’s actual performance relative to those standards, and
(3) providing feedback to the employee with the aim of helping him or her to
eliminate performance deficiencies or to continue to perform above par.

Difference between performance management and performance appraisal

 Performance Appraisal is a system while Performance Management is a
process.
 Performance appraisal is inflexible, but performance management is
flexible.
 Performance Appraisal is an operational tool to improve the efficiency of
employees. However, performance management is a strategic tool.
 Performance Appraisal is conducted by a human resource department of the
organization, whereas managers are held responsible for performance
management.
 In performance appraisal, corrections are made retrospectively. In contrast to
performance management is forward looking.
  Performance Appraisal has an individualistic approach which is just
opposite in the case of Performance Management.
 Performance Appraisal is carried on eventually, but Performance
Management is an ongoing process.
Objectives of Performance Appraisal

1. To maintain records in order to determine compensation packages, wage

structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on
right job.
3. To maintain and assess the potential present in a person for further growth
and development.
4. To provide a feedback to employees regarding their performance and related
status.
5. To provide a feedback to employees regarding their performance and related
status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.

Methods of performance appraisal

• Checklists
– A performance appraisal tool that uses a list of statements or work
behaviors that are checked by raters. Method of performance appraisal
in which the rater answers with a yes or no a series of questions about
the behavior of the employee being rated.
• Can be quantified by applying weights to individual checklist
items.
– Drawbacks
• Interpretation of item meanings by raters
• Weighting creates problems in appraisal interpretation
  Graphic Rating Scale Method :-

A scale that lists a number of traits and a range of performance for each. The
employee is then rated by identifying the score that best describes his or her level
of performance for each trait . The graphic rating scale is the simplest and most
popular method for appraising performance. Method of performance appraisal that
requires the rater to indicate on a scale where the employee rates on factors such as
quantity of work, dependability, job knowledge, and cooperativeness.

Weakness :-

One potential weakness is that evaluators are unlikely to interpret written

descriptions in the same manner due to differences in background, experience, and
personality. Another potential problem relates to the choice of rating categories. It
is possible to choose categories that have little relationship to job performance or
to omit categories that have a significant influence on job performance.

 Alternation Ranking Method :-

Ranking employees from best to worst on a particular trait, choosing highest,

then lowest, until all are ranked. Since it is usually easier to distinguish between
the worst and best employees, an alternation ranking method is most popular. First,
list all subordinates to be rated, and then cross out the names of any not known
well enough to rank.

MBO :-

Specifying the performance goals that an individual and his or her manager agree
the employee will to try to attain within an appropriate length of time. The goal-
setting approach to performance appraisal, or management by objectives (MBO) as
it is more frequently called, is more commonly used with professional and
managerial employees.

The MBO process typically consists of the following steps: 1. Establishing clear
and precisely defined statements of objectives for the work to be done by an
employee. 2. Developing an action plan indicating how these objectives are to be
achieved. 3. Allowing the employee to implement the action plan. 4. Measuring
objective achievement. 5. Taking corrective action when necessary. 6. Establishing
new objectives for the future.

Ranking scale method :-

A listing of all employees from highest to lowest in performance. methods of

performance appraisal in which the performance of an employee is ranked relative
to the performance of others. Three of the more commonly used ranking methods
are alternation, paired comparison, and forced distribution.

Drawbacks :-

 Does not show size of differences in performance between employees

 Implies that lowest-ranked employees are unsatisfactory performers.
 Becomes an unwieldy process if the group to be ranked is large.

Forced Distribution :-

Performance appraisal method in which ratings of employees are distributed along

a bell-shaped curve. The forced-distribution method requires the rater to compare
the performance of employees and place a certain percentage of employees at
various performance levels.

Drawbacks :-

 Assumes a normal distribution of performance.

 Providing explanation for placement in a higher or lower grouping can be
difficult.
 Is not readily applicable to small groups of employees.

Critical Incident :-

Manager keeps a written record of highly favorable and unfavorable employee

actions. Method of performance appraisal in which the rater keeps a written record
of incidents that illustrate both positive and negative behaviors of the employee.
The rater then uses these incidents as a basis for evaluating the employee’s
performance.

Drawbacks :-
The main drawback to this approach is that the rater is required to jot down
incidents regularly, which can be burdensome and time-consuming.

Essay :-

Manager writes a short essay describing an employee’s performance. Method of

performance appraisal in which the rater prepares a written statement describing an
individual’s strengths, weaknesses, and past performance.

Drawback :-

Depends on the managers’ writing skills and their ability to express themselves.

Behavioral anchored Rating Approach :-

Assesses employees’ behaviors instead of other characteristics. behaviorally

anchored rating scale (BARS) Method of performance appraisal that determines an
employee’s level of performance based on whether or not certain specifically
described job behaviors are present. The focus of BARS and, to some extent, the
graphic rating scale and checklist methods is not on performance outcomes but on
functional behaviors demonstrated on the job. BARSs are normally developed
through a series of meetings attended by both managers and job incumbents. Three
steps are usually followed:

1. Managers and job incumbents identify the relevant job dimensions for the job.

2. Managers and job incumbents write behavioral anchors for each job dimension.
As many anchors as possible should be written for each dimension.

3. Managers and job incumbents reach a consensus concerning the scale values to
be used and the grouping of anchor statements for each scale value.

360 degree feedback :-

One currently popular method of performance appraisal is called multi-rater
assessment, or 360-degree feedback. With this method, managers, peers,
customers, suppliers, or colleagues are asked to complete questionnaires on the
employee being assessed.
Organizational reward system
organizational reward system Organizational system concerned with the selection
of the types of rewards to be used by the organization.
Defining the System :-
The organizational reward system consists of the types of rewards to be offered
and their distribution. Organizational rewards include all types of rewards, both
intrinsic and extrinsic, that are received as a result of employment by the
organization.
organizational rewards :- Rewards that result from employment with the
organization; includes all types of rewards, both intrinsic and extrinsic.
intrinsic rewards:- Rewards internal to the individual and normally derived from
involvement in certain activities or tasks.
extrinsic rewards :- Rewards that are controlled and distributed directly by the
organization and are of a tangible nature

Selection of Rewards
Selection of the rewards to be offered is critical if the reward system is to function
effectively. As a first step, management must recognize what employees perceive
as meaningful rewards. Pay is usually the first, and sometimes only, reward most
people think about.
Studies have shown that many variables, such as age, sex, marital status, number of
dependents, and years of service, can influence employee preferences for certain
rewards. For example, older employees are usually much more concerned with
pension benefits than are younger employees. If an organization is going to
distribute rewards—and all do—why should it not get the maximum in return?
Such a return can be realized only if the desires of employees are known. In
addition to the internal factors just mentioned are external factors that place
limitations on an organization’s reward system. These factors include such things
as the organization’s size, environmental conditions, the stage in the product life
cycle, and the labor market. Since these external factors are usually beyond the
control of the organization, this chapter will concentrate primarily on internal
factors.
Intrinsic Reward :-
Achievement, Feelings of accomplishment, Informal recognition, Job satisfaction,
Personal growth Status
Extrinsic reward :-
Formal recognition, Fringe benefits, Incentive payments, Pay Promotion, Social
relationships, Work environment
Job Satisfaction and Rewards
job satisfaction An employee’s general attitude toward the job. The organizational
reward system often has a significant impact on the level of employee job
satisfaction. There are five major components of job satisfaction:
• Attitude toward the work group.
• General working conditions.
• Attitude toward the company.
• Monetary benefits.
• Attitude toward management.
Other components include the employee’s state of mind about the work itself and
life in general. An employee’s attitude toward the job may be positive or negative.
Health, age, level of aspiration, social status, and political and social activities can
all influence job satisfaction.
organizational morale :- An employee’s feeling of being accepted by and
belonging to a group of employees through common goals, confidence in the
desirability of those goals, and the desire to progress toward the goals.

Employee Compensation :-
compensation All the extrinsic rewards that employees receive in exchange for
their work: composed of the base wage or salary, any incentives or bonuses, and
any benefits.
pay Refers only to the actual dollars employees receive in exchange for their work
The base wage or salary is the hourly, weekly, or monthly pay employees receive
for their work.
Incentives are rewards offered in addition to the base wage or salary and are
usually directly related to performance.
Benefits are rewards employees receive as a result of their employment and
position with the organization. Paid vacations, health insurance, and retirement
plans are examples of benefits.
Certain policies :-
It must be formulated before a successful compensation system can be developed
and implemented. Naturally, these policies are strongly influenced by the
organization’s objectives and its environment. Policies must deal with the
following issues: 1. Minimum and maximum levels of pay (taking into
consideration the worth of the job to the organization, the organization’s ability to
pay, government regulations, union influences, and market pressures). 2. General
relationships among levels of pay (e.g., between senior management and operating
management, operative employees, and supervisors). 3. The division of the total
compensation dollar (i.e., what portion goes into base pay, into incentive programs,
and into benefits).

Pay Equity

The equity theory of motivation basically holds that employees have a strong need
to maintain a balance between what they perceive as their inputs to their jobs and
what they receive from their jobs in the form of rewards. Pay equity concerns
whether employees believe they are being fairly paid. There are several dimensions
of equity to consider in looking at pay equity.

internal equity :- Addresses what an employee is being paid for doing a job
compared to what other employees in the same organization are being paid to do
their jobs.

external equity :- Addresses what employees in an organization are being paid

compared to employees in other organizations performing similar jobs.

individual equity :- Addresses the rewarding of individual contributions; is very

closely related to the pay-for-performance question.
organizational equity :- Addresses how profits are divided up within the
organization.

The Role of the Human Resource Manager in the Reward System

The role of the human resource manager in the overall organizational reward
system is to assist in its design and administer the system. Administering the
system inherently carries the responsibility of ensuring that the system is fair to all
employees. This places the burden of minimizing reward inequities and
employees’perceptions of reward inequities squarely on the human resource
manager.

 Job analysis is handle by recruitment manager.

 Career development is handle by HR department.
 Performance analysis is handle by Supervisor.

The ADDIE Five-Step Training Process

The employer should use a rational training process. The gold standard here is still
the basic analysis-design-develop-implement-evaluate (ADDIE) training process
model that training experts have used for years.As an example, one training vendor
describes its training process as follows:

●● Analyze the training need.

●● Design the overall training program.

●● Develop the course (actually assembling/creating the training materials).

●● Implement training, by actually training the targeted employee group using

methods such as on-the-job or online training.

●● Evaluate the course’s effectiveness.

Succession planning

 Process of identifying and developing the future leadership of the company.

 Helps attract and retain managerial employees by providing them with
development opportunities to attain upper-level management as a career
goal.

Design an Effective appraisal system

 Identify Specific Performance Appraisal Goals
 Establish Performance Criteria & Communicate Them To Employees
 Examine Work Performed
 Appraise Performance
 Discuss Appraisal With Employee