CHAPTER 3

HUMAN RESOURCE RECRUITMENT

 Contents of Chapter 3

● Meeting Needs of Human Resource

● What are the Two Major Sources of Candidates to Fill the

Vacant Positions?

● Different Methods of Human Resource Recruitment

Recruitment

Is the process of attracting the best individuals to

join the company on a timely basis in sufficient
numbers and meeting the qualification
requirements, thereby encouraging them to apply
for the jobs in the organization.
Two Major Sources of Candidates to Fill the Vacant
Position

1. The Internal Source

2. The External Source
The Internal Source

These are the qualified candidates from

the company and within the ranks of
it’s present employees.
 The External Source

The hiring from the outside source is a

management option. If it thinks that no one
from within among the next rank of employees
can successfully perform the job or deliver the
required output, then hiring an outsider would
be inevitable.
 Different Methods of Human Resource
Recruitment
1. Job Posting – this is the process by which internal recruitment is accomplished. Every time a position becomes
available it is posted in the company bulletin board for the information of all interested parties.

Promoting or transferring employees from within offers the following advantages:

a) It creates an opening for a lower easy-to-fill position
b) The morale of the employee is boosted
c) Hidden talent maybe uncovered and utilized
d) It saves considerable time and money
e) Employees are already familiar with the company policy and the job itself and therefore less adjustment is
necessary
 Some companies would not like to resort to job posting for the following reasons:

a) Supervisors and managers want to promote someone from their department whom they have groomed for the
position.
b) Some management members may be upset with employees who apply for jobs outside their department and tend
to take such a move personally.
c) Losing an employee to job posting may mean having to wait for replacement that may not be as good.
d) Some companies believe that it is better to bring new blood rather than recycling existing ones.
The success of job posting depends largely on how well it is designed and monitored. The
following guidelines may help in its successful implementation:

a) The employee must have been with the company for at least one year and must be in the current
position for at least 6 months.
b) The employee must have a rating of Very Satisfactory before he can apply for the posted vacant
position.
c) The employee can only apply for not more than three times in one year.
 Different Methods of Human Resource
Recruitment
2. The Word-of-Mouth System – this method of recruitment is found to be effective in local situations. It is one
of the least expensive recruitment system.

On the surface, word-of-mouth appears to be an ideal recruitment source. It is certainly an effective tool but
the following precautionary measures should be observed:

a) Regionalism may dominate over the company employees. Tagalogs will recommend those from the same
region, the Ilocanos will dominate if the one at the helm is an Ilocano and so on.
b) Pulling of strings and the “padrino” system may prevail in the hiring of employees that discriminate against
other applicants, who may be more qualified.
3. Advertising Media – one popular and often effective means soliciting applicants is advertising it through the
media, like newspapers, magazines, radio, or television.

The advertisement should reach the target clientele and it should be designed according to the following
guidelines:

a) For special skills, the ad must clearly stipulate the skills required.
b) In scouting for talent, the wording of the ad should be specific.
c) For applicants who want to know all about specifics, the ad must contain the duties and responsibilities of the
position.
d) Include the details where the applicant should send the resume’ or bio-data or where to apply personally if
required.
e) Be direct and straight forward in wording the ad.
f) Avoid cute and unprofessional phrases as it may reflect on the image of the organization.
g) Hire an advertising agency if you are not sure of what to put in the ad.
h) For hiring of executive positions, the services of a consultancy agency maybe employed.
What are blind aids?
These are ads that do not reveal the identity of the company, instead they
give a box of number where the resume or pertinent papers will be
forwarded. This is usually done to avoid responding to a flood of phone
calls or unwanted resume’s.
The following are the disadvantages:

a) There might be a limited number of applicants for the “hard to fill positions
where you want interested applicants to immediately get in touch with
you.”
b) Blind ads discourage some applicants to apply, as it may be the same
company they are working with.
c) Some applicants may have applied for the same position not too long ago
and it is a waste of time.
4. Walk Ins and Unsolicited Applicants – these unsolicited applicants could be a possible source of outstanding
employees. They are not, however, treated very seriously by the human resource department or the company
receptionist.

The following guidelines may be put into advantages for Walk In or Call in applicants:
a) Applications should be categorized into different skills or qualifications.
b) A day of the week must be scheduled for the interview of the applicants. Those who pass should be
put in the active file for three months for future reference. The applicants should be notified that
their applications are for possible consideration and that they may be called within the specified
period. After such period, the applications could be discarded.
c) Unsolicited applications can also be reviewed with the list of openings in mind. Possible job
matching can be pursued, either by telephone or by mail. This system could work effectively if the
company has embarked on manpower planning.
5. Campus or University Recruitment

Colleges are undisputable sources of talent for an organization to tap. Recent Graduates are
considered highly desirable for companies to select, groom and develop recruits from top schools in the
country. The most suitable candidates are from the University of the Philippines, Ateneo University,
and De la Salle Mapua University produces good engineers. There are little elite schools that produce
good potentials for future executives an experienced person in the filed of recruitment other schools
like Polytechnic University of the Philippines for computer and business courses and the Technological
University of the Philippines for the technical and Engineering courses. Both are government
universities that produce scholars from poor and average families. There are still a lot of other schools
scattered all over the country that produce quality graduates and are a good source of potential
employees.
6. Job Fair and Open House – are popularly increasing as recruitment sources. The
organizational representatives of the company gather and interview several applicants over
a period of one to two days in some specified fields.

Brief interviews are conducted during the job fair. Applicants submit resume and bio-data
for immediate reference. Those who are found to be qualified are called for further
interview at the company’s office where further tests and qualification checks are
conducted. The participating company may choose to exchange information about the
candidates depending on their needs.
7. Government Agencies – some local government units have their placement offices look
for possible employments for their constituents. The DOLE has also an agency that
compiles applications for referral to the different companies. They screen and refer many
applicants usually for manual or unskilled positions. Some are new college graduates or
protegees of politicians who may not be qualified for the job. Some referrals are
accommodated at times for political patronage.
8. Radio and Television – are now used as mediums for manpower recruitment. Since the
coverage of the advertisement is of great magnitude, more qualified applicants can be
reached and could even tempt other applicants who are not actually looking for jobs. While
they have the advantage for job recruitment the following are some points to consider:

a) It is very costly, as the message has to be repeated to get the target audience.
b) The message must be convincing and should be done by a professional.
c) The message on radio and television should be sincere and pleasing.
d) The name of the company must be repeated including the telephone number so that the
audience can remember where to contact the company.
9. The Internet – could become another source of employment opportunities. Company
profiles and job placement could eventually come into the internet.

The following advantages are:

a) Application letters or resumes could immediately be sent to the company.

b) Immediate answers could be available through e-mail.
c) Other necessary information could be available from the applicants.
d) Immediate needs of the company on manpower requirements could be answered in a
short time.
e) They are less costly and get immediate response.
CHAPTER 4
SELECTION OF HUMAN RESOURCES
 OBJECTIVES:
● Familiarize future Human Resource Managers/Personnel with the basic and necessary procedures in
selecting the most qualified employee for the vacant position in a company.
● Help manager/personnel with the appropriate planning strategies in preparing up-to-date procedures for
hiring;
● Design interview questions that will yield information about future employees;
● Design an up-to-date testing procedure to further measure the applicant’s qualifications; and
● Be aware of the importance of checking the references of applicants.
Selection
Can be defined as the process of determining from
among the applicants who can meet the job
requirements and can be offered the vacant position in
the organization. It is the deciding point, which
determines who among the applicants has the personal
qualities that match the requirements for the position.
The different department of the organization make personal requisitions to the HRD on
their manpower requirement through a Personnel Requirement Form (PRF) duly
approved by the management concerned. This PRF specifies the following:

● The positions and the number required.

● The job specifications – what is required to do the job.
● The personal qualities needed for a worker to do the job successfully.
The HRD determines the selection procedure on how to get the most qualified applicants.
Managers and top executives must approve these standard operating procedures. The
following stages may be implemented:

Stage 1 – Establishing Selection Procedure

Stage 2 – Identifying and choosing selection criteria, predictors, and instruments to

be used.

Stage 3 – Gathering and evaluating information about applicants.

Stage 4 – Making communication decisions to select or reject.

Selection Procedure on How to Get the Most Qualified Applicants

1. Stage 1 – Successful employee selection is dependent on a clear understanding of a

job’s components.
2. Stage 2 – Weighing job duties can help the employer assess the qualifications of
competing candidates. Each skill, knowledge area and ability is rated according to its
importance to the job. A skill may be given less importance, for instance, if it can
easily be acquired or is seldom used.
3. Stage 3 – Applicant skills can be evaluated through applications, interviews, tests,
reference checks, letters of recommendation and physicals.
4. Stage 4 – Following a thorough selection process enables you to base a decision on
substantial data rather than on intuition alone.
Who Makes the Selection
Decisions?
The HRD is a staff department and has a functional authority to assist line managers
in all related personnel functions. The final decision to hire usually left up to
operating department executives. The final user of the human resources makes
decision on who is to be hired among the applicants screened by the HRD according
to the PRF submitted by the department. It is the functional authority of the HRD to
screen the applicants and to submit the names of those who passed the initial
screening to the operating department for its final decision on whom to select and
finally hire for the job.
Selection and Job Matching
Selection tries to match the personal qualities of the applicants with the job
requirements. This matching procedure begins with and is based upon an evaluation of
the applicant’s strengths and weaknesses. The results of this evaluation are then
measured against the job standards of the position.
Tests and interviews commonly focus on the applicant’s social abilities as well as his
task abilities. Selection procedures seek to measure the ability of the applicant over the
existing organizational structure. The assumption is that ability determines
performance. While this assumption may be true, it cannot assure that the results is one
hundred percent accurate as motivation plays great factors in productivity.
The Selection Process
The employer can think of the selection process as a series of hurdles that applicants must
clear in order to obtain the job. Each hurdle eliminates some applicants from contention.
The sequence of these hurdles needs to be designed with care. Generally, the most
expensive and time-consuming test (or job sample), it does not matter much which of the
steps comes first.
Often employers use bio-data (information from applications and resumes) as the first step
in eliminating applicants. Furthermore, employers should not be overly influenced by nice-
looking applications that may have been typed or completed by someone other than the
candidate. Professional resume services can make candidates appear quite attractive on
paper. The caution here, then is that there is a little relationship between an applicant on
paper and on the job.
 The Selection Process
1. Preliminary Screening

The first step in the assessment of an applicant for the job is the initial interview or preliminary
screening. This step deals with obvious factors such as voice, physical appearance, personal grooming,
educational background, professional training and experience that need to be assessed.

The following personal traits and qualities are the important things to consider in the
preliminary screening process:

a) Aptitude and interest indicate our natural abilities, capacity for learning, and desires to do certain
jobs.

b) Attitudes and needs indicate an applicant’s frame of mind, emotional and mental maturity, sense of
responsibility and authority, and future motivation.

c) Analytical and manipulative abilities indicate our thinking process, intelligence level and ability to
use knowledge effectively in any assigned task.
Applicants who pass the preliminary interview are asked to fill out an application form provided by the company.
The interviewer usually asks the applicant to answer specific questions and looks for significant reactions and
expressions. The interviewer is usually directed toward discussions of points that the interviewer considers
important.

These are some styles of interview:

a) Structured Interview – follows a set of procedures and the interviewer sets the leads. Directive interview is
usually structured. Structured interviews are usually more effective in promoting equal opportunities for all
applicants.

b) Unstructured Interview – is where the applicant takes the lead. The unstructured interview provides no
specific reference and the applicant is given a free hand in talking about himself and the interviewer makes
an assessment.

c) Panel or round-table interview – is usually done managerial and supervisory employees. The applicant
meets a panel of interviewers and seeks to facilitate the polling of judgments with prominent members of the
working organization.
2. The Application Form

The applicant is required to fill out the company’s official application form after passing the preliminary
interview. The company’s application form contain more information that the company may need in MIS files
or some information that may be required during the in-depth interview. Application forms vary from
company to company. Employment details are important during the interview process.

By careful screening the employee’s information about education, the school where courses were attended,
employment data, years of experience in a particular job, salary received and membership in organizations
may be found closely related success on the job.

GRAPHOLOGY – some companies would require the applicant to write in not less than 200 words his work
or life experience. This would reveal some personality analysis of the person’s characteristics. Graphology is
the art and science in the analysis of the individual’s traits through his handwriting. It can reveal the level of
intelligence, emotional stability, imagination and ability to work with others as well as discover talents and
capacities.
3. Testing and Evaluation of Results

Testing in the parlance of HRM, is commonly associated with the prediction and selection of subsequent
performance on the job. Tests are still the commonly used instruments for determining the qualifications and
talents of the application for a particular job. It is the most objective of all selection instruments in the
selection process.

Tests can be classified on the bases of personal characteristics sought from the applicant. They are the
following:

a) Intelligence Test – it is widely used to measure mental ability or general learning ability.

b) Aptitude Test – it measures the person’s capacity to learn a given job, provided there is adequate
training.

c) Interest Test – it is derived from hereditary and environmental factors. it tries to predict the success in
the job if the person’s interest and the job are properly matched.
d) Personality Test – it is considered as an important instrument to test the
personality of the applicant especially for supervisory and managerial positions, as
they have to relate with their co-worker’s in the industry.
e) Achievement or Proficiency Test – it tries to measure the applicant’s knowledge
of a given job. It tries to eliminate “trade bluffers” who profess to know a particular
type of work. Trade bluffers are people who claim knowledge of a particular type of
work or experience that they do not actually possess.
 What are the requirements for effective testing?

A test can be made more productive and rewarding if it conforms to the

following:
a) It should be properly tested and validated.
b) It should be used with proper discretion and used along with other
instruments.
c) Use a battery of tests to determine the person’s real worth.
d) Set the critical cut – off score in advance.
e) Do not use raw scores: interpret them.
4. In-Depth Interview

The in-depth interview is the most important part of the selection process. After passing all the
tests required, the applicant is now ready to formally enter into the selection process. All the relevant
information about the applicant is brought into focus at this point as the final decision to hire the individual is
made during this interview.

There are three important characteristics that the interviewer must possess.

1. Knowledge – better understanding of the psychology of the person is an important factor in the interview.

2. Empathy – the interviewer must be able to discover the inner behavior of the individual by understanding
his own personality and relate this with the feelings of the applicant.

3. Communication Skills – the interviewer must have facility of communication. This refers to the use of
language, gestures and voice inflection. Words must be carefully chosen to put the individual at ease
during the interview and draw from him in the inner self that is necessary to fully assess the individual’s
fitness to the job.
5. Evaluating References
References are important in finally assessing the applicant’s worth for the position.
References to be credible must be checked with utmost confidentiality if one would like to get a
true picture of the individual who would like to join the organization.
Generally, there are three kinds of references:
1. Academic Reference – this may be requested from applicants who are new graduates.
2. Character Reference – this reference may come from some persons in the community that
are familiar with the individual in their place of residence.
3. Work or Experience Reference – to get the most valid information about the applicant, the
work reference check must be mailed to the previous employer stating the confidentiality of
the information.
Here are some policy guidelines in reference checking:
1. The reference should be used to develop the integrity of the whole selection process.
2. For very important confidential positions, reference should be conducted on a face-to-face
basis since the applicant may be reluctant to divulge significant information.
3. If face-to-face information is impractical, telephone inquiries should be used rather mailed
requests for information.
4. In any kind of follow-up, inquiries should be in structured form to relate information to job
and career requirement.
5. Inquiries should discover the “why” behind whatever impressions are disclosed. Those who
supply information may have their own biases and peculiar standards.
6. Physical Examination
This may be the last hurdle in the selection process. The applicants undergo physical
examination at the company clinic or an authorized hospital to determine the physical fitness of
the applicant for the job. The applicant must pass the physical test as he is certified as being in
good health.
Medical Examinations are important for the following reasons:
a) To screen out those physically incapable of doing the job.
b) To prevent employment of those with high incidence of absenteeism due to illness or
accidents.
c) To prevent hiring of people with communicable disease or who are influenced by drugs.
d) Ward off unwanted claims with worker’s compensation laws, SSS, medical care and suits for
damages.
7. Placements
The applicant who is cleared in all requirements is finally offered the job. Final
acceptance for production workers is usually depended on the approval of the immediate manager
or supervisor of the department where the applicant will be assigned.
Types of Employees
1. Probationary – an employee is hired for regular position based on an organizational staffing
pattern.
2. Regular or Permanent Employee – an employee who passed the probationary period and is
performing a regular activity in the business of the company covered in the regular company
staffing system.
3. Contractual Employee – the employee is hired for a fixed period or specific project of the
company, the completion of which is specifically explained to the employee concerned.
4. Casual or Seasonal Employee – an employee is hired for a particular work or
service that is seasonal in nature. Employment is temporary according to the volume of
work.
5. Apprenticeships – apprenticeships is the development of the required skills for a
particular type of work. It is a learner’s job to familiarize himself with the required
skills.
 CHAPTER 5
TRAINING AND DEVELOPMENT OF HUMAN RESOURCES
 Training is the creation of an environment where employees may
acquire or learn specific job-related behavior, knowledge, skills, abilities and
attitude.
Orientation: Training of new employees
Orientation is the process of introducing new employees to their
work environment and to the company.
The HRD has to design the orientation program and incorporate the following
topics:
1. Company policies, rules, and regulations.
2. Corporate Mission and Vision.
3. Explain the company flow and processes of pay system benefits, and other work-
related information.
4. Provide overview of job setting and work rules.
5. Introducing the employee to co-workers and work environment.
6. Safety Rules and Health Programs.
The Purposes of Orientation Processes
1. Productivity Enhancement – indicates greater output from the same amount of input. It
means higher efficiency with which a company or economy can transform resources into
goods.
2. Turnover Reduction – employees stay longer in the company for having a good impression
into the first orientation. Fast employee’s turnover affect the rate of the efficiency of the
company.
3. Organization Effectiveness – well-oriented employees can contribute a positive goals and
objectives in the company.
4. Favorable Employee Impression – make a positive impression. A new employee is both
excited and apprehensive.
5. Enhancement Interpersonal Acceptance – it tries to ease the employee’s entry in the work
group. Employees often of concerned about meeting new people in the work force.
The following steps are Integral Instructional Processes:
1. Assessment Phase – the assessment phase tends to consist of an intense exercise
during which crucial decisions affecting the migration project are made. It
determines whether or not the course’s learning objectives have meet.
a. Organizational Analysis – the process of appraising the growth,
personnel, operations, and work environment of an entity.
b. Task Analysis – is the process of learning about ordinary users by
observing them in action to understand in detail how they perform their tasks and
achieve their intended goals.
c. Individual Analysis – a phase of training needs analysis directed at
identifying which individuals within an organization should receive training and what
training they should receive.
2. Employees Readiness for Training
- the employee must set a positive thought before entering the training place to be
physically, mentally and emotionally prepared.
a. Self – efficacy – it is the employee’s belief that he can successfully learn the content
of the training.
b. Understanding the benefits or consequences of training – the employee must
understand that the training is related to his job, personal and career benefits as it may include
processes and procedures to make his work easier and is needed due to change in work
technology.
c. Awareness of training needs, career interest and goals – the employee must be
given the choice of what training program he would like to attend.
d. Basic Skills – this refers to the degree of the employee’s desire to learn the cognitive
ability, reading and writing skills and other technology changes necessary in the work
environment.
3. The Learning Environment
- learning involves a permanent change in behavior. For employees to fully acquire the
knowledge and skills in the training program needs to include specific learning principles.
a. Employees need to know why they should learn.
b. Employees need to use their own experience as a bases for learning.
c. Employees need to have the opportunity to practice.
d. Employees need feedback.
e. Employees learn by observing and interacting with others.
f. Employees need training programs to be properly coordinated and
arranged.
 ANALYZING TRAINING NEEDS
The selection of training courses and materials for a company
depends on its specific needs, including liability, experience, and the
cooperation of line supervisors. Factors like cost, labor turnover, and
absenteeism must be considered. A survey, questionnaire, job analysis, and
records can help determine the necessary training.
 4. TRANSFER OF TRAINING
Transfer training involves practical application of program
knowledge, influenced by immediate supervisors and peers, in the work area,
focusing on self-management skills and technology, making the environment
a laboratory for learning.
 5. SELECTING THE TRAINING METHODS
Technology significantly impacts training programs, enabling
trainees to interact with equipment and others, making training more cost-
effective and interactive.
 PRESENTATION METHOD
Hands-on training involves on-the-job training, simulation, business
games, case studies, behavior modeling, interactive videos, and web-based
methods for passive information reception and alternative solutions.
 HAND-ON-TRAINING
This refers to the training method that require on the job training,
simulation, business games, case studies, behavior modeling, interactive
videos and web-based training.
 GROUP BUILDING METHOD
Aids trainees in sharing ideas, building team identity, understanding
interpersonal dynamics, and identifying strengths and weaknesses. It involves
examinations, discussion, and planning for improved job performance.
 6. EVALUATING THE TRAINING PROGRAM
Training evaluation compares post-training results to management
trainers, and trainees’ objectives. It’s time-consuming and costly, and assesses
benefits derived from the activity. Cost-benefit analysis is used to compare
training costs and benefits, with the best method being to measure benefits.
 LEARNING
Refers to the extent to which trainees have comprehended information,
concepts, theories, and attitudes, often assessed through tests on training materials before
and after training.
BEHAVIOR
After training, trainees should change their work attitude and behavior,
demonstrating improved productivity and a better understanding of the work environment,
with management observing performance to gauge training effectiveness.
RESULTS
Employers assess training’s impact on organizational objectives by comparing
pre and post-training records, considering concreate metrics like productivity, turnover,
quality, time, sales, volume, and cost.
 CRITERIA FOR EVALUATION TRAINING
Training effectiveness should be evaluated on long-term performance rather
than superficial reactions. Long-term performance refers to how well trainees have learned
facts, concepts, theories, and attitudes. Tests on training materials can be used to compare
results before and after training, ensuring that training money is well spent.
Training programs are usually evaluated on the basic of their intended objectives.
Five steps to a meaningful evaluation.

1. Determine what to measure – before training, determine the desired changes, such as
customer complaints, scrap rates, employee grievances, and quality defects.
2. Establish the Base line – before starting training, ensure you have a clear
understanding of your performance level to make accurate comparisons and determine
the training effects.
3. Isolate Variables – The Hawthorne Effect, named after a General Electric Plant Study,
suggests that employees’ performance improves due to research attention, not changes in
their working conditions.
4. Measure Attitudes – measuring initial reactions is crucial for overall evaluation, as
trainees can provide valuable feedback and suggestions for improving training techniques.
5. Measure Performance – return to the baseline and assess the training’s results based
on established criteria, ensuring long-term performance tracking to confirm improvement.
 HUMAN RESOURCE DEVELOPMENT

Development involves formal education, job experiences, relationships, and

personality assessments to prepare employees for future roles. It involves growing
capabilities beyond current requirements, handling diverse assignments, and adapting to
changes in technology, work design, customers, products, or markets.
 PLANNING AND CHOOSING A DEVELOPMENT APPROACH

Training programs require analysis to identify strengths and weaknesses of

employees, providing feedback on behavior, communication style, and leadership
potentials for formal induction.
The following processes are used in the assessment:
1. Assessment Center – employees undergo assessments at a center, including
personality tests, communication skills, and personal inventory assessments, to
evaluate leadership potential and future organizational capabilities.
2. Psychological Testing – pencil and paper tests are used to assess employee’s
development potentials, intelligence, and reasoning skills, providing insights into
motivation, leadership, styles, interpersonal response traits, and job preferences.
3. Performance Appraisal – performance appraisals provide valuable development
information by measuring employee’s potential, observing output, attitude,
productivity, employee relations, job knowledge, and leadership behavior, often found
in personnel files.
HUMAN RESOURCE DEVELOPMENT APPROACHES
Activities planned within the company or on company premises enhance employees’
potential for additional jobs, requiring coordination between managers and supervisors for successful
implementation. The following are the in – House Approaches:
1. Management Coaching – the supervisor guides their subordinate in performing essential
functions for their advancement through observations and suggestions, fostering good
relationships.
2. Committee Assignment – assigning promising employees to crucial committees can provide
them with a comprehensive understanding of the organization’s personalities, issues, and
processes.
3. Job Rotation – the process of transferring employees involves significant managerial time for
trainees, who must familiarize themselves with new people and techniques in each new unit.
4. Assistant-to-the-positions – an assistant works directly under a manager, handling
challenging and interesting tasks, analyzing studies before being assigned to the head for
final implementation.
5. Job Enlargement – this refers to adding new responsibilities or challenges to an
employee’s current job, such as special projects, assignments, team role changes, or
research activities.
6. Mentoring – mentoring foster skill development and knowledge about the company by
fostering interaction with experienced members, thereby fostering a collaborative
environment between successful senior employees and less experienced ones.
OFF-SITE OR OUTSIDE DEVELOPMENT INTERVENTIONS
The technique offers individuals a break from the office routine by providing
them with opportunities to learn outside of the workplace at the company’s expense.
The following are some of the development programs:
1. Formal Education – companies send employees to formal training programs,
including seminars, workshops, and advanced studies in exclusive schools or foreign
countries, with employees typically tried to contracts for years of outside training.
2. Team Building – organizational interventions, typically three to four days away from
work, involve teamwork among employees to address common relationships and poor
teamwork issues.
3. Case Studies – classroom training techniques apply management behavior concepts
and analysis, using multi-media or work-related case problems. Group case analysis,
presentations, and discussions enhance learning experiences.
4. Role Playing – role playing is a development technique where trainees assume
roles and perform behaviors, with facilitators providing scripts and group
evaluations, with participants providing feedback and suggestions.
5. Simulation – human resources experts create business games that require
participants to analyze situations and make informed decisions based on given
data.
 CHAPTER 8
MANAGEMENT OF PERFORMANCE APPRAISAL SYSTEM
Performance Appraisal
• The term “performance appraisal” refers to the regular review of an employee’s
job performance and overall contribution to a company. Also known as an
annual review, employee appraisal, performance review or evaluation, a
performance appraisal evaluates an employee’s skills, achievements, and
growth, or lack thereof.
• Performance appraisal is one of the major keys to effective management. It is
basis for determining who should be promoted to a higher position.
Performance appraisal is a process of evaluating an individual in order to arrive
at an objective human resource decision. It is also important for management
development because if an employee’s strengths and weaknesses are not
established, it is quite difficult to determine whether development efforts of the
organization are aimed at the right direction.
Appraisal – is truly an integral part of the total system or management.

Performance appraisal systems

- Provide a means of systematically evaluating employees across various
performance dimensions to ensure that organizations are getting what they
pay for. They provide valuable feedback to employees and managers, and
they assist in identifying promotable people as well as problems.
THE PURPOSES OF PERFORMANCE APPRAISAL
1. Strategic Purpose – the performance management system should
link employee activities with the organizations goals and objectives. To achieve
this strategic purpose, the system must be flexible because, when goals and
strategies change the results, behaviors and employee characteristics usually
need to change correspondingly.
2. Administrative Purpose – the purpose of an evaluation and appraisal
program is usually hampered by the human element of compassion.
3. Development Purpose – the third purpose of performance
management is to develop employees to become effective in their jobs.
THE CRITERIA IN THE DEVELOPMENT OF A MEASURING INSTRUMENT
1. Validity – often it is referred to as content validity. It refers to the accuracy of
the ratings in differentiating each employee in a group in terms of actual job performance.
Extent to which the performance measure assesses all the relevant-and only the relevant-
aspects of the job performance.
2. Reliability – rating may be considered reliable if they are consistent. It refers to
the consistency of the performance measure.
3. Acceptability – refers to whether the people who use the performance
measure accept it. Acceptability is affected by the extent to which employees believe the
performance management system is fair.
4. Specificity – extent to which performance measure gives specific guidance to
employees about what is expected of them and how they can meet these expectations.
Specificity is relevant to both the strategic and developmental purposes of performance
management.
DEVELOPING AND ADMINISTERING AN APPRAISAL PLAN
There are certain guidelines in developing and understanding an appraisal plan
using the following steps:
1. Secure full agreement of line managers about the need for a formal performance
appraisal plan and for the purpose in which it will be used. A choice has to be made among
several types of appraisal plans.
2. Secure plans of their companies and existing literature on the subject to develop a plan
best suited for the needs of the particular organization. The HRD should study all the other
plans and make a careful analysis as to their suitability into the organization.
3. Enlist the cooperation of the supervisor in drawing up the appraisal plan. Discuss the
factors to be used and the uniform descriptions or instructions to be followed.
4. Make sure that the purposes and nature of the performance appraisal plan are explained
to those who will make the appraisal. These are the first level supervisors and department
heads and those who will be affected by the appraisal.
 5. Provide training to those who will use the instruments. Training will provide
enough knowledge on how the rating scale will be used to avoid biases and provide uniform
appraisal of the employees.
6. Develop and achieve line and staff coordination. There should exist a mutual
checking of employees’ performance appraisal in order to be consistent and to provide
uniform within and between departments.
7. Arrange for periodic discussion of the performance appraisal. Supervisors and
their subordinates should discuss the good points, the difficulties and the lapses in the
performance appraisal. Supervisors should encourage better performance.
8. The appraisal system should be carefully used in selecting employees for
possible promotions.
9. Provide for challenges and review of performance e appraisal. The grievance
procedure should be put in place if the employee is not satisfied with the rating given to him.
In case there is a company union, the union representative should be entitled to challenge
personnel decisions.
Approaches to Performance Management
There are various approaches to the development of performance
instruments that could be used by different organizations depending on their
goals and objectives. The following are the approaches used by various
organizations.
1. Comparative Approach – the comparative approach of performance
measurement consists of technique that require the rater to compare the
individual’s performance with that of others.
a. Ranking – this method provides a comparison of the relative qualities of
performance among all the employees in a group or unit.
b. Forced Distribution Technique – this system uses a five-point job
performance scale in rating employees who are doing similar jobs.
 c. Paired Comparison Method – Under this method the name of each
employee who is to be rated is written on the card.
d. The Checklist Method – this rating method provides a number of traits
or factors with corresponding definitions for evaluating the employees written in
the left-hand column of the form such as quantity of work done, quality of work,
attitude towards work, judgment, reliability, cooperation, punctuality and others.
2. Behavioral Approach – The behavioral approach of performance
management attempts to define the behavior an employee exhibits to be
effective in the job.
a. The Critical Incident – the critical incident approach requires managers to
keep a record of specific examples of effective and ineffective performance on the part of
each employee.
b. The Behavioral Anchored Scale – these builds on the critical incidents
approach. It is designed to specifically define performance dimensions by developing
behavioral anchors associated with different levels of performance.

c. The Organizational Behavior Modification – This entails managing the

behavior of the employees through a formal system of behavioral feedback and
reinforcement.
3. The Result Approach – the result approach focuses on managing the
objectives, measurable results of a job or work group.
a. Management By Objectives (MBO) – Management by objectives is
used in most companies who believe in results as bases of performance
management.
b. Productivity Measurement and Evaluation System (PROMES) –
the goal of this system of measurement is to motivate the employees to go for a
higher level of productivity.
Problems of Management Appraisal
Whatever performance appraisal the organizations decides to use,
there are problems related to its implementation. Another problem of
measurement appraisal is the assumption of traits that is open to question. The
connection between performance and possession of specific traits is doubtful.
There are many possible sources of errors in the performance of the appraisal
process.
To correct some of the fear in the management appraisal system, the
following errors should be studied very carefully:
1. Problem of Varying Standards – the managers should avoid using different
standards among employees performing similar jobs.
2. Recent Effect – the error in which the rater gives greater weight to recent
events when appraising an individual performance.
3. Central Tendency – occurs when employees are incorrectly rated near the
average or middle scale.
4. Rater’s Bias – occurs when the rater’s value distorts the rating it may be
unconsciously or quite unintentionally.
 5. Halo Effect – occurs when a manager rates an employee high or low
on all items because of one characteristic.
6. Contrast Error – it is the tendency to rate people relatively with other
people rather than the performance standard.
The Performance Management Appraisal Feedback
Feedback on employee’s performance is an important component of
performance management. After appraisals have been completed, it is important
to communicate them to the employees so that they have a clear understanding
of how they stand in the eyes of their immediate supervisors and the
organizations. It is imperative that managers and supervisors discuss their
appraisals with employees.
The following should be undertaken to give employees feedback:
1. Feedback as a System
a. Data – are factual information regarding observed actions or
consequences of actions. These are facts that report what happened.
b. Evaluation – is the way the feedback system reacts to the fact and
requires performance standards.
c. Action – a system in which data and evaluation influence action. The
manager gives specific suggestions regarding future actions the employer must
take.
2. The Appraisal Interview
The appraisal interview presents an opportunity for the manager to talk
about the employees’ potential and also their weaknesses. It could be an
emotional experience for the manager and the employees because manager
must communicate both the praises and the constructive criticisms in the
evaluation. In this process, the manager should emphasize more on counselling
and development rather than the poor performance of the employees. It should
be handled tactfully as employees may feel resentment and conflicts may result
which could be reflected in future work relationship.
Effective Performance Management System
Regardless of what appraisal system is used, an understanding of what
performance management is supposed to do is critical. When performance is appraisal is
used to develop employees as resources for the company’s’ profitability and advancement
and as instruments for employees’ development, then it will work to the advantage of both
used, but whether managers and employees understand the purposes. An effective
performance management system must be:

1. Consistent with the strategic mission and goals of the organization.

2. Beneficial as a development tool.
3. Useful as an administrative tool of management.
4. Legal and job related.
5. Generally fair and acceptable by the supervisor and the employees.

6. Useful as documentary evidence in all personnel actions.

 Viewed from this perspective performance management evaluation and
appraisal is still considered as a tool effectively developed for a functional
organizational system, directed to its growth and development. Organizations,
formal or informal need a system of appraisal and an instrument of control. It is
therefore important for organizations or companies to develop a well-studied
appraisal system that is accepted by workers and managers and approved by
top management.
THANK YOU!