Organization and Management

Quarter 2
–
Module 11
–
Lesson 1:
Analyze Process of Recruiting, Selecting and Training of Employees
This module was designed and written with you in mind. It is here to help youmaster
Recruiting, Selecting and Training of employees. The scope of this module permits it to be
used in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard sequence of the course.
But the order in which you read them can be changed to correspond with the textbook you are
now using. The module consists of one lesson, namely:

 
Lesson 1

 
Process of Recruiting, Selecting and Training of Employees
 After going through this module, you are expected to:
1.explain the steps in the recruitment and selection process;
2.recognize the different training programs;
3.identify the policy guidelines on compensation and wages and performance appraisal;
4.discuss the importance of employee relation;
5.differentiate various employee movements; and
6.realize the importance of adopting an effective reward system

 Recruitment is the process of attracting, evaluating, and hiring employees for an

organization.
 The recruitment process includes four steps: job analysis, sourcing, screening and
selection, and onboarding.
A good selection process is key in finding talent and forms the backbone for effective
performance management. In this article, we will take a closer look at the selection
process and show the best practices for designing a process that will help you find
the best candidates while also delivering a good candidate experience.

What is the selection process?

The goal of the recruitment and selection process at organizations is to find and hire

the best candidates for job openings. This process has a funnel structure. Imagine

you are seeking a new hire for a role – your current employee decided to pursue

another opportunity. You need to find a replacement. 50 people apply to your job

opening. You select five of them to interview and finally, one person gets the job

offer.

Your organization’s candidate selection process always starts with a job opening.

Every job opening should have a clearly defined function profile. Based on the job
description, this should include criteria like how many (if any) years of work

experience are needed, educational background, and proficiency in certain skills.

Once you publish and advertise your job opening, candidates flow in – hopefully!

This is where the selection funnel starts. The selection process in HRM occurs via a

series of steps that candidates move through. A typical funnel consists of seven

stages. Of course, not every candidate makes it through to every stage. Let’s go

over these stages one by one.

1.Application- After you’ve created a job advert – and double-checked it for any errors –
it’s ready to be posted. Candidates can now apply but the number of applications, the
quality, and diversity of those who do, can vary hugely. 
2. Screening & pre- Selection- he second step in the recruitment and selection process is
the initial screening of candidates.
3. Interview- The third step in the candidate selection process funnel is the best known and
most visible of them all: the job interview.
4.Assessment- We’ve briefly discussed assessments in the second step. Where the pre-
selection, or screening, is used to roughly weed out the least suitable candidates, the full
assessment is usually more accurate.
5.References and background check- reference checks are a way to confirm the accuracy
of what a candidate has told you, and your impressions of them. Ask the candidate to give
you references and follow up on these.
6.Decision- The next step in the recruitment and selection process is making the decision;
choosing the candidate with the greatest potential for the organization. Sometimes this
means picking someone less qualified at the moment – but who is committed to growing and
staying with the organization for longer.
7.Job offer & contract- The offer is then made to the candidate. If they accept the offer, you
draw a contract and have both parties sign it. Only when the employment contract is signed
by all parties, is the selection process complete.

Types of Training Programs

Most businesses offer their employees some type of training. Managers know that the
investment in employee training programs in a wide variety of areas is important to
the bottom line, or profitability, of the business. In this lesson, we will take a look at how the
implementation of several types of employee training programs is used as well as those
programs' benefits aboard the Breezy Ocean cruise ship, including:

 Literacy training
 Interpersonal skills training
 Technical training
 Problem-solving training

Literacy Training
Breezy Ocean's crew is hired from all over the world. Many of the crew do not speak English,
the official language of the ship. Problems arose when passengers had special requests, like
food and drink preferences, asked for lounge locations and, most importantly, needed safety
instructions.
Basic literacy training is training for things like reading, writing and problem-solving skills.
Once the crew learned how to read, write and understand the written word to solve problems,
they were better able to communicate with passengers. There are several benefits to literacy
training for employees. Employees will be more likely to:

 Meet company goals

 Perform job tasks
 Understand work processes
 Work in teams
 Make decisions
 Learn technology

Interpersonal Skills Training

Breezy Ocean's crew lived in small cabins on the bottom deck of the ship. Tight quarters
often led to tensions on the high seas. Crew members fought over things like privacy and
space for their personal belongings.
Interpersonal skills training is training on how to maintain positive relationships,
communicate better, resolve conflicts and build trust. This training was offered to every
member of the crew. There are several benefits to interpersonal skills training for employees.
Employees will be more likely to:

 Get along with each other

 Exchange positive communication
 Minimize conflict
 Influence others to be positive

Technology Training
Breezy Ocean is a high-tech ship with lots of different technologies on board, like the ship's
cruising system, the lounge, theater lighting, cash registers and lifeboats. Crew members
needed to be proficient in technology in order to operate on a day-to-day basis and in an
emergency situation.
Technology training is training on computer software and hardware offered to specific crew
members depending on their position. There are several benefits to offering technological
training to employees. Employees will be more likely to:

 Perform at higher standards

 Have more self-confidence
 Develop higher skill levels
 Perform many different tasks
Problem-Solving Training
Because so much can happen aboard the Breezy Ocean, it is important that employees are
trained to make split-second decisions. Rough seas, power failures, fire or even running out
of margarita mix can cause a serious situation at sea. Crew members need to work together
and quickly solve any problem that occurs.

PERFORMANCE APPRAISALS: HOW DO THEY

AFFECT EMPLOYEES?

Performance appraisals, also referred to as a performance review or performance

evaluation, are a method by which the job performance of an employee is evaluated.
What is Performance?
Employees are performing well when they are effective, productive and reaching the set goals or
company targets. An employee who is at work on time, rarely absent, who reduces the number of
work-related accidents and who has an appropriate level of productivity will be considered a
good performer.
What is Appraisal?
A famous French president was known to start his day with a call to his astrologer asking him:
how am I performing? How is my country performing?
A performance appraisal is an evaluation of employees by supervisors. Most employees wish to
have feedback on their job performances. Appraisals are helpful in many human resource
decisions: selection, training, promotion, transfer, wage, salary…and, appraisals may aid in
improving overall personnel performance.
Objectives of Performance Appraisal
Performance Appraisals are done with a few key objectives in mind:
1.    To maintain records for compensation packages, wage structure, salaries, pay raises, or
restructuring.
2.    To identify the strengths and weaknesses of employees.
3.    To assess and maintain the potential each person has for further growth and development.
4.    To provide feedback to employees regarding their performance.
5.    To serve as a basis for improving working habits of employees.
6.    To review and retain promotional and other training programmes.
Advantagesof a Performance AppraisalPerformance appraisals are an investment for both the
company and the employee. Here are just a few of the advantages:
1.  Promotion: On one hand, performance appraisals help the supervisors to recommend
promotion programmers for efficient employees. On the other hand, inefficient workers can be
dismissed or demoted.
2.  Compensation: Performance appraisals help to evaluate compensation packages for
employees. Packages, which include bonuses, higher salary rates, extra benefits and
allowances, are dependent on how an employee is performing.
3.  Employees Development: Performance appraisals help supervisors to develop training
policies and programmers based on strengths and weaknesses of employees so that new roles
can be designed for efficient employees.
4.  Selection Validation: Performance appraisals help supervisors to understand the
importance, strengths and weaknesses of selection procedures. Future changes in selection
methods can be made thanks to feedback from the employees.
5. Communication: For any organization, effective communication between employees and
employers is very important. Through performance appraisals:
a.  Employers can understand and accept skills of workers,
b.  Workers can also understand, learn to trust and have confidence in superiors,
c.  A company can maintain a positive labor-management relationship.
6.  Motivation: Performance appraisals serve as a motivational tool. Through evaluating the
performance of employees, if the targets are achieved, a person’s efficiency can be determined.
This motivates a person to work toward perhaps a better job, and helps him or her to improve
performance in the future.
What are the disadvantages of performance appraisal?

Performance appraisals are once a year maybe less

Start with the fact that performance appraisals are usually annual. Employees need feedback
and goal planning much more frequently than annually. Some employees need weekly, even
daily, performance feedback to keep them focused on the most important goals, to provide them
with developmental coaching to help them increase their ability to contribute, and to recognize
them for their contributions.
Limited Perspective

Traditional performance review tools involve only the manager’s view of his subordinates’
performance. If the manager supervises several people directly, and also reports to his own
supervisor, he probably has a limited amount of time to actually observe any one employee in
action. Many companies overcome this drawback by using peer review-based appraisal tools
that take into account the employee’s working relationship with customers, coworkers and
vendors, in addition to supervisor feedback. By taking a broader view, the evaluation allows for a
more objective assessment of performance.

Erosion of Motivation
Companies that use performance appraisals as the sole tool when giving out pay increases run
the risk of increasing conflict between supervisors and workers, and eroding employee
motivation. Conflicts arise because workers want the largest pay increase possible, but
managers often have limited funds for these increases. The manager wants the workers to
improve the weak areas of performance. Improvement requires that the manager and employee
work together, but when pay is tied to performance appraisals, employees often focus on their
strong points rather than trying to improve their weaknesses. This can lead to arguments over
the appraisals and allotted pay increases.

Time Consuming
One of the most popular peer-review models, the 360° feedback appraisal model, requires
training of evaluators and careful crafting of survey questions. The evaluation process itself can
take two or more weeks at a time, depending on the size of the company, the time taken before
obtaining feedback from people interacting with the employee’s customers, coworkers, vendors,
and supervisors.

Poorly Trained Managers

Effective performance appraisals do not just happen, and organizations should not assume that
managers know how to conduct them effectively –even if they have many years of experience as
managers. In fact, since the process can differ from organization to organization, it is important
that training be provided to introduce managers to the philosophy of performance appraisals at
the organization, including a review of the forms, the rating system and how the data gathered is
used. Training should take place regularly as a refresher both for new managers and for those
who have been with the company longer.

Subject to appraiser Bias

Managers may bring their own biases and subjective notions to the appraisal process. A bias can
alter the results of the peer review-based appraisal schemes, causing employees to lose faith in
the system and not to see them as credible measures of performance. Employees must see
these systems as fair and just for the process to work properly.
Recently, Dan Price, an American CEO, increased all minimum salaries to a certain figure.
Initially, enthusiasm was high. However, after a week, not everyone was happy, and two of the
company’s most valued members left the company, “spurred in part by their view that it was
unfair to increase the pay of some new hires while the longest-serving staff members got small or
no raises.”
Financial manager Maisley McMaster, one of the employees that left, said she had spent five
years putting in long hours that little time left for her husband and extended family. Yet she had
loved the ‘special culture’ of the place, working her way up the company’s ladder. According to
Mc Master, however, raises were “given to people with fewer skills and those who were least
equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,”
she told the New York Times. A fairer plan, she told the paper, would give newer employees
smaller increases, along with the chance to earn a more substantial raise with more experience
and appraisal.
Do performance appraisals potentially motivate people to achieve more? If there is no appraisal,
will the company get employees who just clock in and out, making the same as the ones who put
in the extra hours, chaining high performers to less motivated team members? Will employees
have new concerns, worrying that maybe their performances do not merit the increase?

The Importance of a Strong Employer/Employee Relationship

When employees have a strong, healthy relationship with their employers, the entire
company benefits. Studies show that employees who have mutually respectful
relationships with their employers are more likely to be happy, loyal and productive in the
long-run. Unfortunately, building a relationship of this nature is easier said than done,
and if you are considering taking a second look at your relationship with your employees,
here are some reasons to continue doing so.
Retain Loyal Employees

Losing an employee to a competitor can be devastating, but unfortunately, employees

who do not have an amicable relationship with their employers are more likely to leave.
When an employee feels comfortable around their employer, and appreciated, they are
far more likely to remain loyal. Companies that encourage positive relationships between
workers and managers are generally more successful, and since their employees are
more likely to stick around, they don’t spend as much on recruiting, hiring and training
new workers.
Fewer Workplace Conflicts

Let’s face it – when a person enjoys being around their manager and co-workers, they
are less likely to seek out conflicts. A peaceful workplace is just one of the many benefits
of strong employee-employer relationships, and if your workplace has been the scene of
a conflict recently, you may want to reevaluate how you relate to your workers. Conflicts
reduce productivity levels, and increase disharmony, and the energy expended quelling
conflicts could be better spent working.
Increased Productivity

As mentioned above, an employee who has a positive relationship with their boss is
more likely to be productive, and the more productive your employees are, the more
revenue your company can generate. When an employee feels happy to work for you,
they are more likely to put forth their best effort and maintain a personal stake the
projects they work on.

Differentiate various employee movements

Movement happens when someone moves around the organization instead of being static in
one place. ... Movement within an organization results from several factors. Movement can
result from training programs, expansion, upskilling, termination and the voluntary departure
of other employees

Realize the importance of adopting an effective reward system

After a company has designed and implemented a systematic performance

appraisal system and provided adequate feedback to employees, the next step is
to consider how to tie available corporate rewards to the outcomes of the
appraisal
Let Us Assess
1.What is recruitment?
A. A process of deciding employee compensation package
B.A process of evaluating employee performance
C.A process of identifying job vacancy & posting job adverts
D.A process of choosing potential candidates for a job vacancy

2. Which of the following will not appear on a job description?

A. title of the job
B. main duties of the job
C. qualifications needed
D. department the job is in

3.Qualification, Experience, Training and Certification will fall under the umbrella of

A. Job Description
B. Job Specification
C. Job Evaluation
D. Job Monitoring

4. What are the main components stated in a job analysis?

A. HR planning & job scope
B Employment letter & job tasks
C. Job description & job specification
D. Job design & salary
5. What is an example of internal recruitment?
A. Advertising at a job center
B. Promotion
C. Using a recruitment agency
D. Advertising in a local newspaper
6. Which of the following is a claimed disadvantage of internal recruitment for a management job?
A. It saves time and money compared to external recruitment.
B. No new ideas or experience is brought into the business.
C. The recruit will already know how the firm operates
D. Workers are motivated by an opportunity for a promotion

7. What is external recruitment?

A. Recruiting from outside the company

B. Recruiting from Asia
C. Recruiting from current employees
D. Recruiting from university

8. External recruitment

A. Giving a promotion
B Using the placement agency
C. Transfer
D. Demotion
 9.Why do companies prefer to use external recruitment?
A. There is no need to do training
B. Will get more new, fresh ideas
C. Candidates are oriented towards the organization
D. It bears a lower cost
10.Which of the Options would best describe External Recruitment.
1.Placement Agencies, 2. Employee Referrals, 3. Job Fairs.
4. Promotions.
A. 2 & 3
B. 1 & 3
C. 1,2 & 3
D. All of the Above

ANSWER KEY TO ACTIVITIES

1.C
2.C
3.B
4.C
5.C
6.B
7.B
8.A
9.B
10.B

References:study.com
: Management.com
: small business.com
 Organization & Management
Quarter II Module 11 & 12
Functions and Importance of Compensation, Wages and Performance
Evaluation, Appraisal, Employee Relations and Movement and Reward
System

This module was designed and written with you in mind. It is here to help you master the
subject Organization and Management. This cope of this module permit sit overused in many
different learning situations. The language used recognizes the diverse vocabulary level of
students. The lesson rearranged to follow the standard sequence of the course. But the order
in which you read them can be changed to correspond with the textbook you are now using.
It will be focus on:
Lesson 1: Examining the Functions and Importance of Compensation, Wages and
Performance Evaluation, Appraisal, Employee Relations and Movement

After going through this module, you are expected to:

1. identify the policy guidelines on compensation and wages and performance evaluation or
appraisal;
2. discuss the importance of employee relations;
3. differentiate various employee movements; and