Module 3: Employment Administration

(Part 1)
Human Resource Management
Course Code: XBB2002
 Module Highlights
• Recruitment & Selection of HR – Methods and Processes
• Training & Development of HR – Types and Techniques
• Performance Appraisal – Instruments and Administration
• Discipline & Grievance Handling
• Promotion, Transfer and Demotion – Meaning and Importance
• Employee Separation-Exit Policy
• VRS
• Lifetime employment without guarantee
• Lay-off, Employee Retrenchment
 What is Recruitment?
Recruitment is the process of finding & attracting capable applicants for employment.
The process begins when new recruits are sought & ends when their applications are
submitted. The result is a pool of applicants from which new employees are selected

Job Analysis HRP

Nature & requirements of Number of specific jobs to be

specific jobs filled

Recruitment

Constraints: Constraints:
Pool of qualified Applicants
Poor Image Poor Image
Unattractive Jobs Unattractive Jobs
Govt. Policy Govt. Policy
Selection
 Recruitment

Purpose & Importance:

• To determine the present & future requirements of the organization in conjunction

with the personnel planning & job analysis activities.
• To enhance the pool of potential job aspirants with minimal cost.
• To enhance the success rate of the selection process by reducing the number of,
under-qualified or overqualified job applicants.
• To effectively reduce the probability of job applicants, once recruited & selected, will
leave the organization only after a short period of time.
• To start identifying & preparing potential job applicants who will be appropriate
candidates.
• To evaluate the effectiveness of various recruiting techniques sources for all types of
job applicants.
 Factors Influencing Recruitment Process

External Factors: Internal Factors:

Supply & demand of manpower Recruitment Policy

Unemployment Rate Recruitment Process HRP
Labor Market Size of the organization
Political & Social Environment Cost
Sons of the soil Growth & Expansion
Corporate Image
 The Recruitment Process

To Selection
HR Planning Job Analysis Employee Requisition

Job Vacancies Recruitment Searching Activation

Planning: “Selling” Applicant Potential hires
-Numbers -Message pool Screening
-Types -Media

Strategy Evaluation & Control

Development:
-Where Applicant
-How Population
-When
 Recruitment Planning

Recruitment Planning involves the translation of likely Job Vacancies & information
about the nature of these jobs into a set of objectives or targets that specify the (a)
number and (b) type of applicants to be contacted.

Number of Contacts: Organizations plan to attract more applicants than they actually
need to hire. In this process generally the “Yield Ratios” (yRs) which expresses the
relationship of the applicant inputs to outputs at various decision points. Thus;

Yield Ratio (yR)= Number of Applicant Inputs/Number Applicant Outputs

Type of Contacts: This refers to the type of people to be informed about the job
vacancies or openings.
 Recruitment Strategy Development

• “Make” or “Buy” Decision: Organizations should decide whether to hire less skilled
employees & invest on T&D programs (Make Strategy), or they can hire skilled labor &
professionals (Buy Strategy).
• Technological Sophistication: Use of Information Technology, particularly with the help of
web based business solutions.
• Where to Look: In order to reduce costs, organizations look into labor markets most likely to
offer the required job seekers. They generally look into the national market for managerial &
professional employees, regional or local markets for technical employees & local markets
for clerical & blue-collar employees.
(a) Internal Sources of Recruitment: Present Employees: Promotions & transfers
from amongst present employee lists; Employee referrals; Referrals of former
employees; Previous applicant databases; company contacts etc.
(b) External sources of Recruitment: Professional Trade Associations; Advertisements;
Employment exchanges; Campus Recruitments, Walk-ins & Talk-ins; Unsolicited
applications
 Factors Influencing the Recruitment Process

• Organization Size & Dimension

• Employment Conditions
• Past Recruitment Efforts or initiatives
• Working conditions, Compensation & Benefits, career growth opportunities
• Organizational Growth
• Organizational Climate, Culture & Corporate Image
 Methods of Recruitment

Recruitment Methods

Internal Methods: Indirect Methods: External or 3rd Party Direct Methods:

Methods:
Promotion, Transfer Advertisements( New Campus
Posting papers, Business Consultants / BPOs Recruitments
Employee Referrals magazines, Job Portals) Employment Exchange Career / Job Fairs
Walk Ins Contractual Service
Forced Applications Unsolicited Applicants
E-Recruitment E-Recruitment (3rd party)
 Merits & Demerits of External & Internal Recruitment
Type of Recruitment Merits Demerits

1. Internal Recruitment • Less Costly • It perpetuates the old concept of

• Job candidates are already oriented doing things.
for the organization • It abets employee poaching
• Managements have better • Candidates’ current work may be
knowledge for the candidates. affected
• Enhanced employee morale & • Politics play greater roles
motivation • Morale problems for those not
promoted.

2. External recruitment • Benefits of new skills- • Better morale & motivation

competencies, new talents & associated with internal recruiting is
experiences. denied to the organization.
• Compliance with reservation policy • It is costly.
becomes easy. • Chances of creeping in false
• Scope for resentment, jealousies & positive & false negative errors.
heartburn are avoided.
 E-Recruitment

• E-Recruitment, also known as “Online -Recruitment”, is a method used by HR

professionals to assist the recruitment process by using technology or web based tools.
• It is an automated process of tracking, attracting, interviewing, and hiring candidates by
utilizing online stages and HR software.
• The most common types of online recruiting methods include:
–Sourcing potential candidates on professional social media platforms.
–Using an applicant tracking system (ATS)
–Interviewing candidates online via video conferencing software.
–Using online testing via surveys and questionnaires.
 E-Recruitment

• Using Job Boards: Job boards are the websites used by the recruiters for advertising job
offerings specifically. On the contrary, Job seekers can use job boards to search for new job
opportunities in their area and profession.
• Some job boards use applicant tracking systems to help streamline the application process
while in others, individual job postings redirect interested candidates to company websites
to complete the application process.
• For example, sites like Glassdoor and Indeed allow candidates to post their resumes for the
recruiters to find them.
 What is Selection?

Selection is the process of differentiating between applicants in order to identify (& hire)
those with a greater likelihood of success in a job.

Selection Procedures:
According to Roe & Greuter (1989), it is important that selection procedures in an
organization fulfills four main functions:
–Information Gathering: It involves generating information about the organization, the
job, career paths, employment conditions on the one hand; and on the other, about
the candidates, including their experience, qualifications & personal characteristics
–Prediction: Using information on past & present candidate characteristics as a basis for
making predictions about candidates’ future behavior.
–Decision-making: Using the predictions about candidates’ future behavior as a basis
for making decisions about whom to accept or reject.
–Information Supply: Providing information about the organization, the job and
employment conditions to candidates etc
 Steps of Selection

INDUCTION
Types of Interviews:

Preliminary & Screening

HIRING DECISION
Stress Interview
REFERENCE CHECKING Technical or In-depth Interview
MEDICAL EXAMINATION Patterned / Structured Interview
SELECTION INTERVIEW / GD
Types of Selection Tests:
SELECTION TESTS
Written (Aptitude, Personality & Intelligence, Achievement
APPLICATION BLANK & Simulation )
Assessment Center Evaluation:
PRELIMINARY SCREENING & INTERVIEW (In-basket Exercises, Leaderless GDs,
Business Games, Presentations etc)
R E C E P T I O N Graphology, Psychometric tests
Structured questionnaires
 Importance of Selection Tests & Interviews in the Selection Process

Selection Tests:
The various selection tests used for the selection process are as follows:

(a) Performance Tests: Here the applicant is asked to demonstrate his her ability to do
the job for which he /she is supposed to be recruited.
(b) Intelligence Tests: These are mental ability tests & aim to evaluate the incumbent’s
learning ability & the ability to understand instructions and take decisions or make
judgments.
(c) Aptitude Tests: They measure an individual’s potential to learn certain skills like
clerical, mechanical, mathematical etc. They indicate whether or not an individual has
the ability to learn a given job quickly & efficiently.
Personality Tests: These tests seek to assess an individual’s motivation, adjustment to
the stresses of everyday life, capacity for inter-personal relations & self-image.
 Importance of Selection Tests & Interviews in the Selection Process

• Projective Tests: These tests expect the candidates to interpret problems or situations
based on their own motives, attitudes, values etc.
• Interest Tests: These are meant to find how a person in tests compare with the interests of
successful people in a specific job. These tests show the areas of work in which a person is
most interested.
• Preference Tests: These tests try to compare employee preferences with the job &
organizational requirements.
• Achievement Tests: These are designed to measure what the applicant can do on the job
currently that is, whether, the testee actually knows what he or she claims to know.
• Simulation/Situational Tests: Simulation exercise is a test, which duplicates many of the
activities, & problems of an employee faces while at work. These exercises are commonly
used for hiring managers at various levels in an organization.
 Importance of Selection Tests & Interviews in the Selection Process:

Assessment Centers: An assessment center is an extended work sample. It uses

procedures that incorporate group & individual exercises. Examples of the real-life
but simulated exercises included in a typical assessment center are as follows: In-
Basket exercise; Leaderless Group discussion; Business Games; Individual
presentations; Structured Interviews.

Graphology Tests: It involves using a trained evaluator to examine the lines, hooks,
strokes, curves & flourishes in an individual’s handwriting so as to assess the
individual’s personality & emotional make-up.
Polygraph Tests: The polygraph tests are designed to ensure accuracy of information
given in the applications.
Integrity Tests: These are designed to measure an employee’s honesty so as to
predict those who are more likely to steal from an employer or otherwise act in a
manner unacceptable to the organization.
Medical Tests: They reveal the physical fitness of a candidate.
 Employment Interviews

Types of Employment Features/Hallmarks

Interviews

1. One-to-One Interview This interview involves two participants – the interviewer

& the interviewee.

2. Sequential Interview It involves a series of interviews, usually utilizing the

strength & knowledge-base of each interviewer, so that
each interviewer can ask questions in relation to his/her
subject area of each candidate, as the candidate moves
from one room to another room.
3. Panel Interview It consists of two or more interviewers who might come
from different subject specializations.
 Types of Interviews
Types Type of questions Usual Applications

1. Structured A pre-determined checklist of Useful for valid results,

questions, usually asked of all especially when dealing with
applicants large number of applicants.

2. Unstructured Few planned questions, which are Useful when the interviewer
made during the time of the tries to probe personal details
interview. of the candidate to analyze why
they are not right for the job.

3. Mixed A combination of structured & A realistic approach that yields

unstructured questions, which comparable answers plus
resembles what is usually done in indepth insights.
practice.
 Types of Interviews
Types Type of questions Usual Applications

4. Behavioral Questions limited to hypothetical Useful to understand the applicant’s

situations & where the process of reasoning & analytical abilities under
evaluation is based on the solution & modest levels of stress.
the approach of the candidate.

5. Stress Interviews A series of harsh, rapid-fire questions Useful for stressful jobs, such as
intended to upset the applicant. handling customer complaints.
 Selection
Medical Examination: It provides the following information:
• Whether the candidate is medically suitable for the job
• Whether the candidate has health problems or psychological attitudes
• Whether the candidate suffers from bad health
• Whether the applicant’s physical measurements are in accordance with the
requirements of the job.

Reference Checks: Once the interview & medical examination of the candidate is over,
the HR department will engage in checking the candidate’s references.

Hiring Decision: The HR manager of the HR department has to make the final decision-
whether to select or reject the candidate after soliciting the required information
collected through the different stages of the selection process.
TRAINING & DEVELOPMENT
 Training vs Development vs Education

Training: Training is the act of increasing the knowledge & skills of an employee for
doing a particular job. Training can also be defined as any organizationally planned
effort to change the behavior or attitudes of employees so that they can perform jobs
on acceptable standards.(Flippo et al).

Development: Development, in contrast, is considered to be more general than

training & more oriented to individual needs in addition to organizational needs & it
is most often aimed towards management people.

Education: Education, is the process of increasing the general knowledge &

understanding of the employees in an organization. It is a person-oriented, theory-
based knowledge whose main purpose is to improve the understanding of a
particular subject or theme or conceptual learning.
 Objectives of Training

• To impart the basic knowledge skills to the new entrants & enable them
to perform their jobs well.
• To equip the employee to meet the challenges of the changing
requirements of the job & the organization.
• To ensure that employees are being updated with new techniques &
ways of performing the job or operations.
• To prepare employees for higher level tasks & build up a second line of
competent managers.
Types of Training
Types of Training
Orientation Training:
It tries to put the new recruits get accustomed with the jobs, the organization &
the employees.
It helps the recruit to familiarize himself with the job & its settings
Job Instruction Training (JIT):
Orient trainees to the job situation
Demonstrate the entire job through experienced trainers
Ask trainees to do the job
Evaluate employee performance periodically
Refresher Training:
These include short term courses which incorporate latest developments in a
particular field, the company may keep its employees up-to-date & ready to take
on emerging challenges
Apprenticeship Training:
Apprentices are trainees who spend a prescribed period of time working with an
experienced supervisor or manager.
Vestibule Training:
It is offered on actual equipment used on the job but conducted away from the
actual work-setting (a simulated work situation).
 Process of Training: A Systematic Approach

Organizational Objectives &

Strategies

Assessment of Training Needs

Establishment of Training Goals

Devising Training Program

Implementation of Training
Program

Evaluation of Training
 Process of Training: A Systematic Approach

1. Assessment 2. Implementation 3. Evaluation

• Determine Training Needs • Select Training methods • Compare Training

• Identify Training Objectives • Conduct Training • Training Outcomes against
• pre-decided training
criteria
 Training Needs Assessment

Training efforts must aim at meeting the requirements of the organization (long term) &
the individual employees (short term). This involves the assessment of Training Needs
Analysis (TNA). According to Thayer & McGhee et al, the components of TNA are as
follows:

– Organizational Support & Organizational Analysis

– Requirement Analysis & Task, KSA & Role Analysis
– Person or Manpower Analysis
 Training Needs Assessment

Reasons or “Pressure
Outcomes:
Points”:
What is the context
In what way What Trainees need to
Legislation
do they need learn
Lack of Basic Skills Organization Training Who receives Training
Poor Performance Analysis Type of Training
New Technology
Task Frequency of Training
Customer Requests
Analysis Buy vs Build Training
New Products Person
Decisions
Higher Performance Analysis
Training vs other HR
Standards
options such as Job
New Jobs
Who Needs the Training Redesign or Selection
Competition
How Training should be
evaluated
 Identifying the Training Objectives

TRAINING OBJECTIVES

INNOVATIVE: PROBLEM SOLVING: REGULAR:

 Anticipating problems  Training so as to reduce  Orientation.

before they occur. complaints. Recurring Training of
interviewers
Team Building sessions  Training supervisors in Refresher training
with the departments. communications to reduce courses on safety
grievance. procedures.
TRAINING METHODS
 On-the-Job Training Methods
1. Job-Instruction Training (JIT):
These are provided to the employees when they are being taught relevant
knowledge, skills & abilities at the actual workplace. This training occurs in the
presence of an able supervisor & involves the following steps:
– The Trainee receives an overview of the job, its purpose & its desired outcomes, with a
clear focus on the relevance of the training.
– The trainer demonstrates the job to give the employee a model to copy. The trainer shows
a right way to handle the job.
– In the next stage, the employee is permitted to copy the trainer’s way. Demonstrations by
the trainer & practice by the trainee are repeated until the trainee masters the right way to
handle the job.
– Finally, the employee does the job independently without supervision.
 On-the-Job Training Methods

2.1 Coaching:
• Coaching is a one-on –one relationship between trainees & supervisors which offers
workers continued guidance & feedback on how well they are handling their tasks.
• The coach assigns the task, monitors the trainee behavior, and provides
reinforcement & feedback.
• Coaching is commonly used for all kinds of trainees, from unskilled to managerial
positions.

2.2 Mentoring:
• Mentoring is a particular form of coaching used by experienced executives to groom
junior employees.
• Mentoring involves on-on-one coaching for a period of several years until the
individual is eventually capable of replacing the mentor.
 On-the-Job Training Methods

3. Apprenticeship Training:
Apprentices are trainees who spend a prescribed amount of time working with an
experiences guide or supervisor or trainer. One important disadvantage of the
apprenticeship method is the uniform period of training offered to the trainees.

4. Committee Assignments:
In this method the trainees are asked to solve an actual organizational problem. The
trainees have to work together & offer solution to the problem. This method of
training helps them to develop team spirit & work unitedly towards common goals.

5 Job Rotation Training:

This training involves the movement of the trainee from one job to another. This
helps him to have a general understanding of how the organization functions.
 Off-the-Job Training Methods
1. Vestibule Training:
In this method, actual work conditions are simulated in a class room. Materials, files &
equipment those are used in actual job performance are also used in the training
process. This type of training is commonly used for training personnel for electrical &
semi-skilled jobs. It allows the employees to develop the necessary skills in a pressure-
free environment.

2. Role Playing:
It is defined as a method of human interaction that involves realistic behavior in
imaginary situations. This method of training involves action, doing & practice. This
method is mostly used for developing interpersonal interactions & relations.

3. Lecture Method:
It is a traditional & direct method of instruction. To be effective, the lecture must
motivate & create interest among the trainees. An advantage of this method is that it is
direct & can be used for a large group of trainees. The major limitation of this method is
that it does not provide for the transfer of training effectively.
 Off-the-Job Training Methods

4. Conference/Discussions Method:
This method is a directed discussion on a specific topic conducted with a relatively
small group of trainees. Trainees have a large degree of verbal interaction with the
discussion leader & with one another. This method is useful for teaching & exploring
difficult conceptual materials, & for changing attitudes & opinions. It provides
opportunity for feedback, reinforcement practice, motivation, & transfer, largely due
to the active interchange of ideas between the participants.

5. Programmed Instruction (PI):

Programmed Instruction (PI) presents information in small books, either in book form
or through a teaching machine. After reading each book of material, the learner must
answer a question about it. PI involves: a) presenting questions, facts or problems to
the learner; b) allowing the person to respond; c) providing feedback on the accuracy
of answers of the learner; d) If the answers are correct, the learner can proceed to
the next level or next block.
 Off-the-Job Training Methods
6. Films & Televisions:
Films are pre-recorded & can be shown on either movie screen or television sets &/or
well-suited to any number of trainees. An advantage of films & television over
lectures is that the films can show objects & processes in detail & in motion.

7. Computer-Assisted Instruction (CAI):

It is method similar to programmed instruction which utilizes the computers’ storage
& memory capabilities to individualize instruction. The computer analyzes the
learners’ responses & determines what material is presented next.

8. Simulated Work Settings:

Training simulators are those which replicate the essential characteristics of the real
world that are necessary to produce learning & transfer of knowledge & skills.
Simulation on the other hand can thereby be described as an attempt to create a
realistic decision-making environment for the trainee by presenting likely problem
situations & decision alternatives.
 Behaviorally Experienced Training Methods

1. Behavioral Modeling:
Behavior Modeling is a newer method for teaching interpersonal skills & attitude change,
is very specific in its training objectives. It teaches specific supervisory skills by: a)
Presenting a model or good example of the behavior to be learned; b) allowing the
trainees to practice the modeled behavior; & c) Providing feedback & reinforcement on
practice attempts.

2. Case Study Method:

It presents the trainees with a written description of a business or organizational
problem. The object of the case method is to teach the trainees how to analyze
information, generate alternative decisions, & evaluate the alternatives.

3. Business Games:
The business game technique requires trainees to make sequential decisions. Trainees
work by themselves in teams in which each team member takes the role of the manager
of a functional area such as HR, marketing, finance etc.
 Behaviorally Experienced Training Methods

4. In-Basket Technique:
This training method places the trainee in the role of a person who must suddenly
replace a manager. In this role, the trainee receives background information about
the organization & the person he or she is replacing, along with letters, memos &
relevant files & information regarding the job. The trainee then must organize the
information, make decisions, and prepare memos, letters & organize files so as to
handle the problems or present themselves to the trainers.

5. T-Group Technique:
The T-Group method uses a small group of trainees, who meet with a passive trainer
& gain insight into their own & other’s behavior. Meetings have no agenda, &
questions deal with the “hear & know” of the group process. The discussions focus
mainly on “why participants behave as they do, how they perceive one another, & the
feelings & the emotions generated in the interaction process.” T-Groups are highly
involving & give participants some opportunity to practice new behaviors, but
material to be learned is very unstructured
 Behaviorally Experienced Training Methods

6. Sensitivity Training:
Sensitivity Training is a part of human relations training which aims to make act, feel
differently.

Sensitivity Training is a group experience designed to provide maximum possible

opportunity for the individuals to expose their behavior, give & receive feedback,
experiment with new behavior & develop awareness of the self & of others.

It is based on the concept of empathy, which is to actually perceive a situation with

another person’s viewpoint & emotions.
 Training Evaluation
Definition:

Training Evaluation can be defined as any attempt to obtain information (feedback)

on the effects of training program & to assess the value of training in the light of that
information for improving further training (Hamblin, 1970).

Features:

• Evaluation of training can be viewed as a method of measuring change in knowledge,

skills, attitudes, job performance, costs & the quality of the training facilities.

• A major reason to evaluate training programs is to determine whether the training

programs are accomplishing their specific training objectives.
 Levels of Training Evaluation
Kirkpatric Approach

Level Questions

1. Reaction Were the participants pleased with the program?

2. Learning What did the participants learn in the program?

3. Behavior Did the participants change their behavior based on

what was learned?

4. Results Did the change in behavior positively affect the

organization?
 Employee Development

1. Worker Development Program: It aims to enhance the skill &

knowledge of the employees to advance in the company or to accomplish
additional job responsibilities.
• Such programs can enable the organization to have a workforce which
can make more contributions & adapt to changing situations.
• Among these are included on-the-job training & apprenticeship
training.
2. Supervisory Development Program: The supervisory staff need training
most, for they form a very important link in the chain of administration in
an organization.
 Management Development Program

Management Development is a systematic process of growth & development by

which the managers develop their abilities to manage the organization in effective
ways.

Objectives of MDPs:
– To overhaul the management machinery (improve the quality)
– To improve the performance of managers
– To give the specialists an overall view of the functions of an organization & equip them to
coordinate each other’s efforts effectively
– To identify the persons with the required potential & prepare them for more senior
positions
– To increase the morale & versatility of the members of the management group.
 What is Performance Management

• Performance management is the process of creating a work

environment or setting in which people are enabled to perform
to the best of their abilities.
• Performance management is a whole work system that begins
when a job is defined as needed. It ends when an employee
leaves the organization.
Employee Performance Management Process
2.1 Establishing Performance Goals

2.2 Performance Planning

2.3 Observation & Feedback

2.4 Evaluation of Performances

2.5 Rewarding Performances

2.6 Recognizing Performance Problems (Performance Gaps)

2.7 Formulating Performance Development Plans

 Defining Performance Appraisal

Performance appraisal is the formal, structured system of measuring & evaluating

an employee’s job related behaviors & outcomes to discover how & why the
employee is presently performing on the job & how the employee can perform
more effectively in the future so that the employee as well as the organization can
mutually benefit.
 Objectives of Performance Appraisal

• To evaluate the performance outcomes and achievements made by employees

• To effect promotions based on competence & performance
• To confirm services of probationary employees upon their completing the probationary
period satisfactorily
• To assess the training & development needs of employees.
• To generate adequate feedback & guidance from the immediate superior to an employee
working under him.
• To decide upon a pay raise where regular pay scales have not been fixed.
• To provide inputs to system of rewards (comprising salary increments, transfers,
promotions, demotions or terminations) & salary administration.
 Multiple purposes of Performance Assessment

General Applications Specific Purpose

Developmental uses Identification of individual needs

Performance feedback
Determining transfer & job assignments
Identification of individual strengths & developmental
needs

Administrative Uses/Decisions Salary

Promotion
Retention or termination
Recognition of individual performance
Lay-offs
Identification of poor performance
 Multiple purposes of Performance Assessment

General Applications Specific Purpose

Organizational HR planning
Maintenance/Objectives Determining organization training needs
Evaluation of organizational goal achievement
Information for goal identification
Evaluation of HR systems
Reinforcement of organizational development
needs
Documentation Criteria for validation Research
Documentation for HR decisions
Helping to meet legal requirements
 Planning the Performance Appraisal

A meaningful performance appraisal is a two-way process that benefits both the employees & the
organization as a whole. The planning appraisal strategy has to be done:
a. Before the appraisal:
– Establish key task areas & performance goals
– Set performance goals
– Get the facts
– Schedule each appraisal interview well in advance
b. During the appraisal:
– Encourage two-way communication
– Discuss & agree on performance goals for the future
– To think about how one can assist the employee to achieve more at work.
– Record notes of the interview
– end the performance appraisal interview on an upbeat note
c. After the appraisal:
– Prepare a formal record of the interview
– Document the Appriasal
– Monitor performance
 Performance Appraisal Process

Key Performance Area (KPAs): Tasks

& duties needed to be accomplished Define Objectives of Performance Appraisal
for a job

Key Result Areas (KRAs): Targets Establish Job Expectations

(quantitative/qualitative) for a job
Design the appraisal program Performance
Key Performance Indicators (KPIs): Job feedback
Performance standards/Quality indices/ Appraise (Measure) Performances
Best Practices or Benchmarks
Conduct Performance Interviews
Use appraisal data for appropriate purposes
 Past-Oriented Appraisal Methods
Confidential Report: It is mostly used in Govt. organizations. It is a descriptive report
prepared, generally at the end of every year, by the employee’s immediate superior.

Checklist Method: Under this method a checklist of statements on the traits of the
employee & his or her job is prepared in two columns namely; “yes” column and a
“no” column. When points are allotted to the checklist, the technique is known as a
Weighted Checklist.

Rating Scales: This is the simplest & the most popular technique for appraising
employee performance. The typical rating scale system consists of several numerical
scales, each representing a job-related performance criterion such as dependability,
initiative, output, attendance, attitude, cooperation & so on. Each scale ranges from
excellent to poor. The rater checks the appropriate performance level on each
criterion, then computes the employee’s total score.
Graphic Rating Scale With Provision For Comments
Example Of A Mixed-standard Scale
 Past-Oriented Methods
Forced Choice Method: In this method, the rater is given a series of statements about
the employees. These statements are arranged in blocks of two or more, and the
rater indicates which statement is most or least descriptive of the employee.

This approach is known as forced choice method because the rater is forced to select
statements which are readymade. The advantage of this method is the absence of
personal bias in rating. The disadvantage is that the statements may not be properly
framed & may not also precisely be the descriptive of the ratee’s traits.

Forced Distribution Method: One of the errors in rating is leniency or the clustering
of a large number of employees around a high point on a rating scale. The forced
distribution method seeks to overcome the problem by compelling the rater to
distribute the ratees on all points on the rating scale.
 Past-Oriented Methods
Critical Incident Method: This approach focuses on certain critical behaviors of an
employee that makes the difference between effective and non-effective
performance of a job. These events are generally noted or recorded by the superiors.
One of the major advantages of this method is that the evaluation is based on actual
job behavior.

Field review Method: This is an appraisal by someone outside the assessee’s own
department, usually someone from the corporate office or the HR department. The
outsider reviews employee records & holds interviews with the ratee his or her
superior.

Performance Tests & Observations: With a limited number of jobs, employee

assessment may be based upon a test of knowledge or skills. The test may be of the
paper & pencil variety or an actual demonstration of skill.
 Past-Oriented Methods
Behaviorally Anchored Rating Scales (BARS): Behaviorally Anchored rating Scales are also known as
Behavioral Expectations Scale. These are rating scales whose scale points are determined by
statements of effective & ineffective behaviors. They are said to be behaviorally anchored in that the
scales represent a range of descriptive statements of behaviors varying from the least to the most
effective.

Collect Critical Identify Performance Reclassification of

Incidents Criterions Incidents

Producing the Final Assigning Scale Values to the

Instrument Incidents
 Examples Of A Bars For Municipal Fire Companies
FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.
Sample Items From Behavior Observation Scales
 Past-Oriented Methods
Essay Method: In this method, the rater must describer the employee within a
number of broad categories, such as a) the rater’s overall impression of the employee
performance, b) the promotability of the employee c) the jobs that the employee is
now able or qualified to perform, d) the strengths & weaknesses of the employee &
e) the training & development assistance required by the employee.

Cost Accounting Method: This method evaluates performance from the monetary
returns the employee yields to his or her organization. A relationship is established
between the cost included in keeping the employee & the benefit the organization
derives from him or her.

Comparative Evaluation Approaches: These are a collection of different methods

that compare one worker’s performance with that of his/her coworkers. Comparative
appraisals are usually conducted by supervisors. The usual comparative forms used in
this kind of evaluation are the Ranking Method & the Paired Comparison Method.
 Comparative Evaluation Approaches

Ranking Method: In this method the superior ranks his or her subordinates in the
order of their merit, starting from the best to the worst. This method is subject to the
halo & recency effects, although rankings by two or more raters can be averaged to
help reduce bias.

Paired-Comparison Method: Here the appraiser compares each employee with every
other employee, one at a time. For example, there are five employees namely, A, B, C,
D, E. the performance of A is 1st compared with that of B & a decision is made about
whose performance is better. Then A is compared with C, D & E in that order. The
same procedure is repeated for other employees. The number of comparisons can be
calculated with the help of a formula, namely:
N(N-1)/2, where N stands for the number of employees to be compared.
If there are 10 employees, the comparisons will be 10(10-1)/2=45.
 Summary of Appraisal Methods

ADVANTAGES DISADVANTAGES
Inexpensive Potential for error
TRAITS Meaningful Poor for counseling
Easy to use Poor for allocating rewards
Poor for promotional decisions

Specific dimensions Time consuming

BEHAVIOR Accepted by employees Costly
Useful for feedback Some rating error
OK for reward/promotion

Less subjectivity bias Time consuming

Accepted by employees Focus on short term
RESULTS Performance-reward link Criterion contamination
Encourages goal setting Criterion deficiency
Good for promotion
decisions
 Future-Oriented Appraisal Methods

• Management By Objectives (MBO)

• 360 Degree Feedback Appraisal Systems
• Psychological appraisals
• Assessment Centers
 Management By Objectives (MBO)

What is MBO:

Management by Objectives is a process whereby the superior and

subordinate managers of an organization jointly identify its common
goals, define each individual’s major areas of responsibility in terms of
results expected of him & use these measures as guides for operating the
unit and assessing the contributions of each of its members.

Identify the KRAs Define the Assign specific Define authority &
(Jointly by HR & Performance
expected Results responsibilities to responsibility relationships
Employee) Evaluation
the employees
 360 Degree Feedback Appraisal Systems
The 360 degree Feedback Appraisal process is the systematic collection of
performance data on an individual or group, derived from a number of stakeholders-
the stakeholder being the immediate supervisors, team members, customers, peers
& the self (self appraisal).
Grand Parent Appraisal / Super
Boss Appraisal
Client Appraisal / Appraisal by Uncle-Aunt Appraisal / Appraisal by
Suppliers, Distributors, and Direct other Departmental heads
Customers
Parent Appraisal / Boss
Appraisal

Peer Appraisal Peer Appraisal

Self Appraisal

Son / Daughter Appraisal

(Subordinate Appraisal)
 Future-Oriented Appraisal Methods
Psychological Appraisals:

The appraisal normally consists of in-depth interviews, psychological tests, discussions

with supervisors & a review of other evaluations. The psychologist then writes an
evaluation of the employee’s intellectual, emotional, motivational & other-related
characteristics that suggest individual potential & may predict future performance.

Assessment Centers:
Assessment center is a mechanism used to identify the potential for growth of
individuals. It is a procedure specifically used, designed to evaluate an employee’s
managerial potential. Its objective is to reinforce strengths, overcome weaknesses &
exploit potential of the employees through training & development efforts. The
assessors observe the behavior & make independent evaluation of what they have
observed, which results in identifying strengths & weaknesses of the attributes being
studied.