human resource management-text

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3.1 HUMAN RESOURCE PLANNING

Human resource planning involves forecasting of human resource needs for the

organization and planning the steps necessary to meet these needs.

HR planning consists of developing and implementing plans and programs to ensure that the

right number and type of individuals are available at the right time and place to fulfil

organizational needs.

HR planning pursues for organization to have employees not only today but especially in the

future:

in the right number, with needed knowledge, skills and abilities, with desired personal characteristics, motivated, flexible and ready for changes, optimally dislocated to the working position and teams, at the right time, with adequate costs.3.1.1 Human Resource Planning Process

The steps in the HR planning process are shown in Figure 3.1. HR planning process begins

with considering the organizational objectives and strategies. HR planning process consists of

five steps: (1) Determining the impact of the organizations objectives and strategies on

specific organizational units. (2) Demand forecasting. (3) Supply forecasting. (4) Design

plans to coordinate supply and demand - forecast must be developed to identify the

relationship between supply and demand for human resources. (5) Formulate HR strategies

and plans.

Figure 3. 1 HR Planning Process

(Own processing)

Determining Organizationals Objectives and Strategies

Human resource plans must be based on organizational strategic plans. In practice, this means

the objectives of the human resource plan must be derived from organizational objectives.

Specific human resource requirements in terms of numbers and characteristics of employees

should be derived from the objectives of the entire organization.

Organizational objectives, which give the organization and its members direction and

purpose, should be stated in terms of expected results. The objective-setting process begins at

the top of the organization with a statement of mission, which defines the organizationscurrent and future business. Long-term objectives and strategies are formulated based on the

OrganizationalObjectives and

Strategies

DemandForecasting and

Supply

Forecasting

Design Plans toCoordinateSupply and

Demand

Formulate HRStartegiesand Plans


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TRAINING AND DEVELOPMENT HUMAN RESOURCES

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organizations mission statement. These can then be used to establish short-term performance

objectives. Short-term performance objectives generally have a time schedule and are

expressed quantitatively. Divisional and departmental objectives are then derived from the

organizations short-term performance objectives. Establishing organizational, divisional, and

departmental objectives in this manner has been called the cascade approach to objective

setting.The cascade approach is not a form of top-down planning, whereby objectives are passed

down to lower levels of the organization. The idea is to involve all levels of management in

the planning process. Such an approach leads to an upward and downward flow of

information during planning. This also ensure that the objectives are communicated and

coordinated through all levels of the organization.

When properly used, the cascade approach involves both operating and human resource

personnel in the overall planning process. During the early stages, human resource personnel

can influence objectives setting by providing information about the organizations human

resources. For example, if human resource personnel have identified particular strengths and

weaknesses in the organizations staff, this information can significantly influence the overall

direction of the organization (Byars, Rue, 2011).

Environmental Factors Affecting Human Resource Needs

Many factors in the organizations external environment may have an impact on the

organizations objectives and the human resources needed to realize those objectives. Some of

these factors include government influences (laws and regulations, general economic

conditions (recession or economic boom, interest rate and the level of unemployment rate),

the competition, and changes in the workforce. Competitive concerns relate primaly to the

emergence or departure of direct competitors as well as the emergence and departure of

businesses that compete for the same labor and other resources. Changes in workforce refer

not only to the workforce composition but also to its work habits. The impact of changes intechnology can vary from insignificant to devastating to extremely positive.

Demand Forecasting

It is process of estimating the future quantity an quality of people required. The basis of the

forecast must be annual budget and long-term corporate plan, translated into activity levels for

each function and department. In a manufacturing company, the sales budget would be

translated into a production plan giving the number and type of products to be produced in

each period. From this information, the number of hours to be worked by each skilled

category to make the quota for each period, would be computed. Once hours are available,

determining the quality and quantity of personnel will be the logical step.

Demand forecasting must consider several factors both external as well as internal. Among

the external factors are competition, economic climate, laws, changes in technology and social

factors. Internal factors include budget constraints, production levels, new products and

services, organizational structure and employee separations.

There are several good reasons to conduct demand forecasting. It can help: (1) quantify the

jobs necessary for producing a given number of goods, or offering a given amount of services;

(2) determine what staff-mix is desirable in the future; (3) assess appropriate staffing levels in

different parts of the organisation so as to avoid unnecessary costs; (4) prevent shortages of

people where and when they are needed most; (5) monitor compliance with legal

requirements with regard to reservation of jobs (Aswathappa, 2009).


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Forecasting Methods

The organizations future human resource needs can be forecasted using a variety of methods,

some simple and some complex. Regardless of the method used, forecasts represent

approximations and should not be viewed as absolutes.Forecasting methods may be either intuitive or quantitative. Some common intuitivemethodsare:

Subjective judgment - managers being to make judgements about future labourrequirements based on their knowledge and experience.

Delphi technique -is a systematic, interactive forecasting method which relies on a panelof experts. The experts answer questionnaires in two or more rounds. After each round, a

facilitator provides an anonymous summary of the experts forecasts from the previous

round as well as the reasons they provided for their judgments. Thus, experts are

encouraged to revise their earlier answers in light of the replies of other members of their

panel. It is believed that during this process the range of the answers will decrease and thegroup will converge towards the "correct" answer. Finally, the process is stopped after a

pre-defined stop criterion (e.g. number of rounds, achievement of consensus, stability of

results) and the mean or median scores of the final rounds determine the results.

Scenario writing - under this approach, the forecaster starts with different sets ofassumptions. For each set of assumptions, a likely scenario of the business outcome is

charted out. Thus, the forecaster would be able to generate many different future scenarios

(corresponding to the different sets of assumptions). The decision maker orbusinesspersonis presented with the different scenarios, and has to decide which scenario is most likely to

prevail.

Among the most commonly used quantitative methodsinclude:

Extrapolation of trends - where the ratio product levels to labour employed has beenaccurate in the past, projection based on such ratios can be used to indicate the amount of

labour required in the future to meet business goals.

Simulation - is the imitation of some real thing, state of affairs, or process. Regression analysis is a Statistical Forecasting Model that is concerned with describing

and evaluating the relationship between a given variable and one or more other variables.

Regression analysis models are used to help us predict the value of one variable from one

or more other variables whose values can be predetermined.

Supply Forecasting

Personnel demand analysis provides the manager with the means of estimating the number

and kind of employees that will be required. The next logical step for the management is to

determine whether it will be able to procure the required number of personnel and the sources

for such procurement. This information is provided by supply forecasting. Supply forecasting

measures the number of people likely to be available from within and outside an organisation,

after making allowance for absenteeism, internal movements and promotions, wastage and

changes in hours, and other conditions of work.

Just as there are valid reasons why companies make demand forecast, there are enough

arguments for suplly forecast. In fact, fewer organizations estimate HR supplies than demand.

Reasons for supply forecast are that it: (1) helps quantify number of people and positionsexpected to be available in future to help the organization realise its plans and meet its


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objectives; (2) helps clarify likely staff mixes that will exist in the future; (3) assess existing

staffing levels in different parts of the organization; (4) prevents shortage of people where and

when they are most needed; (5) monitors expected future compliance with legal requirements

of job reservations.

Forecasting of HR is based on:

Analysis of current HR in organization Forecasting of departures of employees Forecasting of changes at current HR because of promotion of employees Forecasting of absenteeism Resources of supply of internal HR Resources of supply of external HRFormulate HR strategies and plans

Specific strategies may be developed to fill vacancies or deal with surplus employees.

Specific HR plans are developed to provide more specific direction for the management ofHR activities. The most telling evidence of successful planning is a consistent alignment of

the availabilities and capabilities of human resources with the needs of the organization over a

period of time.

3.1.2 Human Resource Planning Responsibilities

In most organizations that do HR planning, the top HR executive and subordinate staff

specialists have most the responsibilities for this planning. However, as Figure 3.2 indicates,

other managers must provide information for the HR professionals to analyze. In turn, those

other managers need to receive data from the HR department. Because top managers are

responsible for overall strategic planning, they usually ask the HR department to project thehuman resources needed to implement overall organizational goals(Mathis, Jackson, 2008).

Figure 3.2 Typical Division of HR Responsibilities: HR Planning

LINE MANAGERS HR PROFESSIONALS

Identify supply and demand needs for eachdepartment

Participates in strategic planning process for entireorganization

Review/discuss HR planning information with HRspecialists

Identifies HR strategies

Integrate HR plan with departmental plans Design data systems for HR planning

Monitor HR plan to identify changes needed Compiles and analyzes data from managers on

staffing needs

Review employee succession plans associated with

HR plan

Implements HR plan as approved by top

management

(Mathis, Jackson, 2008, p. 46)


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3.2 JOB ANALYSIS, HUMAN RESOURCE PLANNING ANDRECRUITMENT

Figure 3.3 illustrates the relationships among job analysis, human resource planning,

recruitment and the selection process. Job analysis gives the nature and requirements of

specific jobs. Human resource planning determines the specific number of jobs to be filled.Recruitment concerns providing a pool of people qualified to fill these vacancies. Questions

that the recruitment process addresses include: What are the sources of qualified personnel?

How are these qualified personnel to be recruited? Who is to be involved in the recruiting

process? What indicements does the organization have to attract qualified personnel? (Byars,

Rue, 2011).

Figure 3.3 Relationships among Job Analysis, Human Resource Planning, Recruitmentand Selection.

Nature and requirements Number of specific jobs

of specific jobs to be filled

Sources?

How are qualified candidates

To be recruited?

Recruiters? Inducements?

Pool of qualified applicant

(Byars, Rue, 2011, p. 113)

3.2.1 Job Analysis and Job Description

Job analysis represents a crucial stage in the recruitment and selection process because it

identifies the nature and scope of responsibilities expected of new recruits.

Job analysisis process of describing and recording the purpose of a job, its major duties and

activities, the conditions under which it is performed, and the necessary skills, knowledge and

abilities. The process of job analysis provides a basis and foundation for the job to be filled

and the outcomes of job analysis include job descriptions, accountability profiles and

employees specifications of requirements.

Job specificationdefines the experience, education, training and knowledge, skills, personal

characteristics and abilities needed to perform a job.

Job descriptionspecifies the major duties and responsibilities of a given job band se out the

tasks the jobholder is expected to perform. Job description varies in form and content but

generally specify: job title; department; pay grade; date, what the job was analyzed; name of

Job analysis Human ressource

planning

Job description

Recruitment

Selection


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job analyst; job characteristic and duties; working conditions; responsibilities; working place

equipment; superiority and subordination; relation to other job positions; job specification.

3.2.2 Methods of Collecting Job Data

There are four basic methods, which can be used separately or in combination, of collectingjob analysis data observation, interview, questionnaires, and diary method. In each of these

methods, the information about the job is collected and then the job is studied in terms of

tasks completed by the job incumbent (person presently working on the job). This type of job

analysis is referred to as job-oriented. On the other hand, a job can be analyzed in terms of

behaviour or what the job incumbent does to perform the job (such as computing, or

negotiating). This is referred to as work-orientedjob analysis (Ivancevich, 2004).

Observation.Direct observation is used for jobs that require manual, standardized, and short-

jobcycle activities. Jobs performed by an automobile assembly-line worker, an insurance

company filing clerk, and an inventory stockroom employee are examples of these. The job

analyst must observe a representative sample of individuals performing these jobs.Observation is usually not appropriate where the job involves significant mental activity, such

as the work of a research scientist, a lawyer, or a mathematician. The observation technique

requires that the job analyst be trained to observe relevant job behaviours. In conducting an

observation, the job analyst must remain as unobtrusive as possible. He or she must stay out

way so that the work can be performed. Better results will be available when the observation

method is used along with other method(s) of job analysis.

Interview. Interviewing job incumbents is often done in combination with observation.

Interviews are probably the technique used most widely in collecting data for job analysis.

They permit the job analyst to talk face to face with job incumbents. The job incumbent can

ask questions of the job analyst, and this interview serves as an opportunity for the analyst toexplain how the knowledge and information gained from the job analysis will be used.

Although interviews can yield useful job analysis information, an awareness of their potential

limitations is also needed. Interviews are difficult to standardize different interviewers may

ask different questions and the same interviewer might unintentionally ask different questions

of different respondents. There is also a real possibility that the information provided by the

respondent will be unintentionally distorted by the interviewer. Finally, the costs of

interviewing can be very high, especially if group interviews are not practical (Ivancevich,

2004).

Questionnaire.Job holders fill in the given structured questionnaire, which are then approvedby their supervisors. The filled-in questionnaires offer enough data on jobs. Standard

questionnaires are available or they may be prepared for the purpose by the analysts. Standard

or prepared questionnaires should contain the following basic information: (1) The job title of

the job holder. (2) The job title of the job holders manager or supervisor. (3) The job titles

and numbers of the staff reporting to the job holder. (4) A brief description of the overall role

or purpose of the job. (5) A list of the main tasks or duties that the job holder has to carry out;

as appropriate, these should specify the resources controlled, the equipment used, the

contracts made and the frequency with which the tasks are carried out.

Diary Method.This method requires the job holders to record in detail their activities eachday. If done faithfully, this technique is accurate and eliminates errors caused by memory

lapses the job holder makes while answering questionnaires and checklists. This method,

however, is time consuming because the recording of tasks may have to be spread over anumber of days. It also engages considerable time of a production worker.


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3.2.3 Uses of Job Analysis Information

The information produced by the job analysis is the basis for several interrelated HR

management activities:

HR Planning.To be effective, HR planning all must be based on job requirements and the

capabilities of individuals.

Recruitment and Selection.Job analysis provides information about what the job entails and

what human characteristics are required to carry out these activities. Such job description and

job specification information is used to decide what sort of people to recruit and hire.

Compensation. Job analysis information is also essentials for estimating the value and

appropriate compensation for each job. This is so because compensation usually depends on

the jobs required skill and education level, safety hazards, degree of responsibility, and so

on-all factors that are assessed through job analysis.

Performance Appraisal. A performance appraisal compares each employees actual

performance with his or her performance standards. It is often through job analysis that

experts determine the standards to be achieved and the specific activities to be performed.

Training. Job analysis information is also used for designing training and developmentprograms because the analysis and resulting job description show the skills-and therefore

training-that are required.

Ensure Complete Assignment of Duties.The job analysis is also useful for ensuring that allthe duties that have to be done are in fact assigned to particular positions.

3.2.4 Job Analysis Responsibilities

The process of conducting a thorough job analysis can involve many different people. HRprofessionals almost always have the primary responsibility for overseeing the process, but

they cannot conduct an adequate analysis on their own. The people who work in a job and the

people who observe a job being done day in and day out are the experts when it comes to

describing that job, so their involvement in job analysis is essential. Figure 3.4 summarizes

the major ways that HR professionals, line managers, and other employees get involved in job

analysis.

Figure 3.4 Typical Division of HR Responsibilities: Job Analysis

LINE MANAGERS HR PROFESSIONALS EMPLOYEES

Complete or help complete jobanalysis information.

Coordinates job analysis. Help line managers recognizewhen major changes in a jobindicate the need for job analysis

or reanalysis.

Review job descriptions and

specifications and maintain their

accuracy.

Ensure that job analysis

information is up-to-date and is

used as the foundation for the

organizations HRM system.

Provide accurate information for

job analysis.

Request new analysis as jobs

change.

Writes job description and

specifications for review bymanagers.

Use job analysis results for

career planning and job choicedecisions.

Use job analysis information toidentify performance standards.

Periodically reviews jobdescriptions and specifications.


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Provide information to outside

experts.

Reviews managerial input to

ensure accuracy.

May seek assistance from outsideexperts for difficult or unusual

analyses.

Keep up-to-date on newtechniques and changing trendsin job analysis.

(Jackson, Schuler, Werner, 2009, p. 155, modified)

3.3 SYSTEMATIC APPROACH TO RECRUITMENT AND SELECTION

Recruitment involves seeking and attracting a pool of people from which qualifiedcandidates for job vacancies can be chosen. Most organizations have a recruitment function

managed by the human resource department. In an era when the focus of most organizations

has been on efficiently and effectively running the organization, recruiting the right person for

the job is a top priority.

Selection is process of choosing individuals with qualifications needed to fill jobs in anorganization. Figure 3.5 shows a systematic approach to recruitment and selection.

3.3.1 RECRUITMENT OF EMPLOYEES

Recruitment involves searching for and obtaining qualified applicants to consider when fillingjob openings. Recruitment, however, stops short of deciding which individuals should be

hired from the pool of applicants. Recruitment represents the first contact that a company

makes with potential employees. It is through recruitment that many individuals will come to

know a company, and eventually decide whether they wish to work fot it. A well-planned and

well-managed recruiting effort will result in high-quality applicants, whereas, a haphazard and

piecemeal effort will result in mediocre ones. High-quality employees cannot be selected

when better candidates do not know of job openings, are not interested in working for the

company, and do not apply. The recruitment process should inform qualified individuals

about employment opportunities, create a positive image of the company, provide enough

information about the jobs so that applicants can make comparisons with their qualifications

and interests and generate enthusiasm among the best candidates so that they will apply for

the vacant positions.

Recruitment lends itself as a potential source of competitive advantage to a firm. An effective

approach to recruitment can help a company successfully compete for limited human

resources. The firm must choose a recruiting approach that produces the best pool of

candidates quickly and cost efectively. A recruiting programme helps the firm in at least four

ways: (1) Attract highly qualified and competent people. (2) Ensure, that the selected

candidates stay longer with the company. (3) Make sure, that there is match between cost and

benefit. (4) Help the firm create more culturally diverse work-force.


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Figure 3.5 A Systematic Approach to Recruitment and Selection

(Robinson, 2006, p. 158, modified)

The negative consequences of a poor recruitment process speaks volumes about its role in a

firm. The failure to generate an adequate number of reasonably qualified applicants can prove

costly in several ways. It can greatly complicate the selection process and may result in

lowering of selection standards. The poor quality of selection means extra cost on training and

supervision. Furthermore, when recruitment fails to meet organisational needs fo talent, atypical response is to raise entry-level pay scales. This can distort traditional wage and salary

Legal and Ethical Framework

Human Ressource Planning

Job Analysis

Job Description and Specification ofJob Position

Create Recruitment and Selection

Strategy

Recruitment

- attracting potential applicants

Selection- shortlist and evaluation of applicants

through appropriate selection methods

Making and justifying the selection

decision

Evaluating the effectiveness of the process


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relationships in the company, resulting in unavoidable consequences. Thus,the efectiveness of

the recruitment process can play a major role in determining the resources that must be

expended on other HR activities and their ultimate success (Aswathappa, 2009).

Recruitment strategy and policy decision entail identifying where to recruit, whom torecruit, how to recruit, which costs and in what time-schedule. Sources of recruitment can be

broadly as internal and external.Most employers combine the use of internal and externalsources.

Internal recruitment is focused on the organizations internal labour market as a means of

filling vacancies. The most common internal recruiting methods include: organizational

databases, job postings, promotions and transfers, current-employee referrals and re-recruiting of former employees.

Many external sources are available for recruiting. In this chapter are described the most

popular recruitment sources: school recruiting, recruitment agencies, headhunters,

advertisements, ppersonal recommendationand internet.

Both promoting from within the organization and hiring from outside the organization come

with advantages and disadvantages.

Advantages of internal recruitment:

Gives existing employees greater opportunity to advance their careers in the business. May help to retain staff who might otherwise leave. Requires a short induction training period. Employer should know more about the internal candidate's abilities (= a reduced risk of

selecting an inappropriate candidate).

Usually quicker and less expensive than recruiting from outside.Disadvantages of internal recruitment: Limits the number of potential applicants for a job. External candidates might be better suited / qualified for the job. Another vacancy will be created that has to be filled. Existing staff may feel they have the automatic right to be promoted, whether or not they

are competent.

Business may become resistant to change; by recruiting from outside, new perspectivesand attitudes are brought in.

Advantages of external recruitment:

Outside people bring in new ideas. Larger pool of workers from which to find the best candidate. People have a wider range of experience.Disadvantages of external recruitment:

Longer process. Selection process may not be effective enough to reveal the best candidate. More expensive process due to advertisements and interviews required.


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External Sources

Organizations have at their disposal a wide range of external sources for recruiting personnel.

External recruiting is needed in organizations that are growing rapidly or have a large demand

for technical, skilled, or managerial employees. Methods for recruiting from the external labor

market include job advertisements, the use of recruitment agency, personal recommendation,

internet recruiting, school recruiting.

Job advertisements - advertisements are the most common form of external recruitment.

They can be found in many places (local and national newspapers, notice boards, recruitment

fairs) and should include some important information relating to the job (job title, pay

package, location, job description, how to apply-either by CV or application form). Where a

business chooses to advertise will depend on the cost of advertising and the coverage needed

(i.e. how far away people will consider applying for the job.

Recruitment agency- provides employers with details of suitable candidates for a vacancy

and can sometimes be referred to as head-hunters. They work for a fee and often specialise

in particular employment areas e.g. nursing, financial services, teacher recruitment. Headhunting are recruitment agents who provide a more specialized approach to the recruitment of

key employees and/or senior management.

Personal recommendation - often referred to as word of mouth and can be arecommendation from a colleague at work. A full assessment of the candidate is still needed

however but potentially it saves on advertising cost.

Internet recruiting the internet has become the primary means form many employers to

search for job candidates and for applicants to look for jobs. The explosive growth in general

Internet use a key reason. Internet users tap the internet to search for jobs almost as frequently

as they read classified ads in newspapers.

School recruiting high school or vocational schools may be valuable sources of newemployees for some organizations. Promotional brochures that acquaint students with starting

jobs and career opportunities can be distributed to counsellors, librarians, or others.

Participating in career days and giving company tours to school groups are other ways of

maintaining good contact with school sources.

3.3.1 Human Resource Recruiting Responsibilities

As you will see, recruiting can involve everyone in an organization. Several of the ways that

line managers, HR professionals, and other employees get involved in recruiting employeesare summarized in Figure 3.6.

HR professionals usually take the lead in designing a systematic and integrated approach to

recruiting employees. Human resource professionals also take responsibility for filling the

organizations staffing needs efficiently. The cost of Web-based recruiting software, time

spent at job fairs, salaries and benefits paid to recruiters, and/or fees paid to headhunters must

all be justified by recruitment results.


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Reliability.Reliability of a predictor is the extent to which it repeatedly produces the same

results over time.

3.4.2 The Selection Process

Most organizations take a series of consistent steps to process and select applicants for jobs.

Selection can take place in a day or over a much longer period of time and certain phases of

the process may be omitted or the order changed, depending on the employer. Figure 3.7

shows a typical selection process.

Initial screening includes making certain that the applicant has the basic necessaryexperience and background as well as determining if they possess the core traits and attitudes

you have found to be predictive of success in that job.

Orientationprovides new employees with basic background information about the employer,

information they need to perform their jobs satisfactorily, such as what the work hours are.

More and more companies are finding that orientation can be used for other purposes, such asfamiliarizing new employees with the companys cherished goals and values.

The first part of the orientation is usually performed by the HR specialist, who explains such

matters as organization structure of company, working hours, getting on the payroll, benefits

and vacation. The employee is then introduced to his or her new supervisor. The latter

continues the orientation by explaining the exact nature of the job, introducing the person to

his or her new colleagues, and familiarizing the new employee with the workplace.

Selection Methods

Evidence indicates that the complexity of work increases, companies use a combination of

different selection methods and use selection methods that capture the applicants capability

to do the work. We can use different methods to help select qualified employees.

The most used methods of selection are:

Selection Interview Testing Assessment center

Selection Interview

Face-to-face selection interviews allow an assessment to be made of the candidates

personality, ability and overall suitability for the job. The interview can take different forms

and can vary in design, structure and focus.

Types of selection interviews:

Individual interview- as the name implies two people meet alone and one interviews theother by seeking oral responses to oral inquiries (applicant+head of department or manager

or personnel clerk).

Panel interview an interview in which a group of interviewers questions the applicant.The group structure has several advantages. A sequential interview often has candidates

cover basically the same ground over and over again with each interviewer.


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Figure 3.7 Typical Selection Process

(Own processing)

Team interview in a team interview, applicants are interviewed by the team memberswith whom they will work.

Sequential interview an interview in which the applicant is interviewed sequentially byseveral persons and each rates the applicant on a standard form.

Structured interview questions are prepared in advance, all the applicants are asked thesame questions in the same order.

Unstructured interview(free-running) involves little preparation.

A Pool of Qualified Candidates

Initial Screening

The First Round of Selection- combination of selection methods (tests,

interview, work demonstration)

The Second Round of Selection- additional interview, assessment centre

A Smaller Pool of QualifiedCandidates

A Smaller Pool of QualifiedCandidates

New Employees

Orientation


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Semistructured interview part of interview is structured and part of interview isunstructured, both parts are concurred.

Behavioural interview - applicant are asked to describe how they have performed a certaintask or handled a problem in the past, which ideally predicts future actions and shows how

applicants are best suited for current jobs.

Biographical interview - focuses on a chronological assessment of the candidates pastexperiences.

Situational interview contains questions about how applicants might handle specific jobsituations.

Stress interview is designed to create anxiety and put pressure on applicants to see howthey respond.

Common Interviewing Mistakes

There are several common interviewing mistakes that undermine an interviews usefulness.Several problems include:

Snap judgments- interviewers tend to jump to conclusion, make snap judgments, aboutcandidates during the first few minutes of the interview and spend the rest of the time

looking for evidence to support their judgment.

Negative emphasis unfavourable information about an applicant is often emphasizedmore than favourable information when evaluating suitability.

Poor knowledge of the job interviewers who dont know precisely what the job entailsand what sort of candidate is best suited for it usually make their decision based on

incorrect stereotypes about what a good applicant is.

Biases and stereotyping- Similarity bias occur when interviewers favour or select peoplethat they believe to be like themselves based on a variety of personal factors. Interviewers

should avoid any personal tendencies stereotype individuals because of demographic

characteristic and differences.

Cultural noise - interviewers must learn to recognize and handle cultural noise, whichstems from what applicants believe is socially acceptable rather than what is factual.

Effective Interviewing

Many people think that ability to interview is an innate talent, but this contention is difficult

to support. Just being personable and liking to talk is no guarantee that someone will be an

effective interviewer. Interviewing skills are develop through training. A number of

suggestions for making interviewing more effective are as follows:

Plan the interview. Interviewers should review all information before the interview, andthen identify specific areas for questioning.

Control the interview. This includes knowing in advance what information must becollected, systematically collecting it during the interview, and stopping when that

information has been collected.

Use effective questioning techniques. Utilize questions that will produce full andcomplete answers that can be evaluated based on job relatedness.


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Selection Testing

Many different kinds of tests can be used to help select qualified employees. Selection tests

must be evaluated extensively before being utilized as a recruiting tool. The development of

the test items should be linked to a thorough job analysis. Also, initial testing of the items

should include an evaluation by knowledge experts, and statistical and validity assessments of

the items should be conducted. Furthermore, adequate security of testing instruments shouldbe coordinated, and the monetary value of these tests to the firm should be determined.

Ability Tests

Work Sample tests - work sample tests are based on the premise that the best predictor offuture behaviour is observed behaviour under similar situations. These tests require the

examinee to perform tasks that are similar to those that are performed on the job.

Physical ability tests tests that measure an individuals abilities such as strength,endurance and muscular movement.

Psychomotor tests tests that measure dexterity, hand-eye coordination, arm-handsteadiness and other factors. Cognitive ability tests tests that measure an individuals thinking, memory, reasoning,

verbal and mathematical abilities.

Personality TestsPersonality tests are used to determine your type of personality, your values, interests and

your skills. They can be used to simply assess what type of person you are or, more

specifically, to determine your aptitude for a certain type of occupation or career.

Intelligence TestsIntelligence tests measure your intellectual functioning, or in plain language, how smart you

are. They are designed to measure an individual's mental skills.

Assessment Centre

An assessment centre is usually an all day event (or longer) which forms part of the latter

stages of a company's recruitment procedure. Employers want to find out how you perform in

different situations and devise activities to test you in various ways. Assessment centre

involve a number of candidates being put through a variety of tests and assessments designed

to measure specific competencies whilst being observed by trained assessors. Assessment

centres thus use a variety of selection techniques and different measures which enableassessors to observe candidates in a variety of different situations and make an overall

assessment.

What can I expect to happen at an assessment centre?

Various activities - but you are unlikely to face everything listed here at one assessment

centre:

Second interview- a second interview will focus on any doubts or weaknesses that wereraised in the first interview.

Aptitude or psychometric tests - many employers run verbal and numerical reasoningtests - these are held under strict exam conditions. Practise in advance, declare any


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disability (including dyslexia) and mention if English is not your first language before the

test begins. Diagrammatic reasoning tests are used mainly in computing posts.

Group exercises- these may be practical discussion based or physical activities. Presentation - You may be notified of a topic in advance or given a subject during the

assessment centre. Remember that the styleof your presentation is as important as the

content. Group discussion - You may be asked to discuss issues of current importance to the

profession or sector or current news items. Prepare by keeping up to date with the news

and researching the sector, other organisations within that sector etc.

3.4.3 Human Resource Selecting Responsibilities

Selection is a key responsibility for all managers and supervisors in a company. However,

organizations vary in how they allocate selection responsibilities between HR professionals

and line managers. The typical selection responsibilities are shown in Figure 3.8.

Figure 3. 8 Typical Division of HR Responsibilities: Selection


Requisition employees with

specific qualifications to fill jobs

Provides initial reception for

applicants

May participate as applicants for

internal transfers, promotions, and

other opportunities

Participate in selection processas appropriate

Conducts initial screeninginterview

May interview candidates towork in the team or work unit

Interview final candidates Administers appropriateemployment tests

May be involved in selecting new

coworkers

Make final selectiondecision,subject to advice of HRspecialist

Obtains background andreferenceInformation and sets up a

physicalexamination, if used

Attend training programs foremployees involved in selectionprocesses

Provide follow-up information on

the suitability of selected

individuals

Refers top candidates to managers

for final selection

Evaluates success of selectionprocess

(Mathis, Jackson, 2008, p. 230; Jackson, Schuler, Werner, 2009, p. 195)


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3.5 RECRUITING AND SELECTING EVALUATION AND METRICS

To determine how effective various recruiting sources and selecting methods have

been it is important to evaluate recruiting and selecting efforts. Although various areas can be

measured when trying to analyze recruiting and selecting effectiveness; five specific areasthat usually need to be considered include:

Quantity of applicants the basic measure here considers whether the quantity of recruitsis sufficient to fill job vacancies.

Quality of applicants measures that can be used include items such as performanceappraisal scores, months until promotion, output, and sales volume for each hire.

Time available for filling empty positions Cost per recruit and select recruiting and selecting expense/number of recruits hired. Satisfaction of parties involved

General Recruiting and Selecting Process Metrics

Yield Ratios comparisons of the number of applicants at one stage of the recruitingprocess with the number at the next stage as Figure 3.9 depicts.

Selection rate percentage hired from a given group of candidates. Success Base Rate can be determined by comparing the number of past applicants who

have become successful employees against the number of applicants they competed against

for their jobs, using historical data within the organization. Also, the success base rate can

be compare with the success rates of other employers in the area or industry using

benchmarking data (Mathis, Jackson, 2008).

Figure 3. 9 Sample Recruiting and Selecting Evaluation Pyramid


Total initial contacts = 100

Formal applicants = 30

Final interviewees = 15

Offer recipients = 10

Hires = 5Yield ratio=50%

Yield ratio=66%

Yield ratio=15%

Selection rate=5%


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4.1 TRAINING AND ORGANIZATIONAL STRATEGY

Strategic trainingis linked to how the organization accomplishes its organizational goals. It

can have numerous organizational benefits. First, strategic training enables HR and training

professionals to get intimately involved with the business, partner with operating managers to

help solve their problems, and make significant contributions to organizational results.

Additionally a strategic training mind-set reduces the likelihood of thinking that training alone

can solve most employee or organizational problems (Mathis, Jackson, 2008).

The HR Strategy defines the background for all HR activities with the value added. The HR

Training Program has to be definitely connected closely with the HR Strategy as the HR team

cannot be trained in different skills and competencies, which are requested by the HR

Strategy.

The design of the HR Training Program is difficult and unique for each organization as it has

to be tightly connected with the HR Strategy and it has to use the language of the company asthe employees understand the main messages the same way.

Training and development strategy is a vision, focus, direction and action planning

document for training and development in an organization that requires implementation to

achieve success. It is a blueprint that needs to support the optimization of the human resource

capital in the organization. It is essential that the training strategy is aligned to the

organization's strategy and enables its vision to be realized.

4.1.1 Defining the Terminology

A question frequently raised by examiners is what is the difference, if any, between training

and development? Another question which is sometimes asked is what is the difference

between education and training? We can thus compare the core meanings of each of these

concepts, as follows:

Education this is usually intended to mean basic instruction in knowledge and skills

designed to enable people to make the most of life in general: it is personal and broadly based.

Learning this is the process of acquiring knowledge, understanding, skills and values in

order to be able to adapt to our environment: it underpins all of the above three: the amount,

quality and rate of take-up of learning depends mainly on (a) the innate intelligence and

motivation of the learner, (b) the skills of the teacher, and (c) the conditions in which thelearning takes place (Cole, 2004).

Training - gives new or present employees the skills they need to perform their jobs. Trainingcan be designed to meet a number of objectives and can be classified in various ways. Figure

4.1 indicates common areas of training.

Development - is focused on acquiring of wider range of knowledge and skills, which

employee does not need for his/her current job. Development is more oriented on employees

career and forms rather potential of employees than his/her qualification.


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Figure 4.1 Areas of Training

(Koubek, 2007, p. 255, modified)

4.2 SYSTEMATIC TRAINING AND DEVELOPMENT PROCESS

We can think of a typical training or development program as consisting of four steps, as

summarized in Figure 4.2. Using such a process reduces the likelihood that unplanned,uncoordinated and haphazard training efforts will occur. The purpose of the identification

and analysis of needs step is to identify the specific job performance skills needed, to

analyze the skills and needs of the prospective trainees and to develop specific, measurable

knowledge and performance objectives. In the second, training design step, the actual

content of the training program is compiled and produced including workbooks, exercises and

activities. Fourth, the training plan is implemented- preparation of training programs, choice

of trainers, negotiation of terms and conditions, conclusion of a contract, organizational

provision, preparation of participants (organizational information, meeting with trainers).

Fifth, there should be an evaluationand follow-up step in which the programs successes or

failures are assessed.

TRAINING

Orientation:efficient adaptation of employee

Deepening of qualification:continuation of vocational training in

field in which employee works.

Retraining:acquisition (obtaining) of newknowledge and skills enabling

employee to work on another

position.

Vocational rehabilitation:task: re-subsumption of people whocouldnt perform present job because

of health.


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Figure 4.2 Systematic Training and Development Process

(Cole, 2004, p. 351, modified)

The benefits of systematic training and development process include: The provision of a pool of skilled personnel for the organization, The improvement of existing skills, An increase in the knowledge and experience of employees, Improvements in job performance with resulting improvement in productivity overall, Improved service to customers, Greater commitment of staff, Increased value of individual employees knowledge and skills, and Personal growth opportunities for employees (Cole, 2004).4.2.1 Identification and analysis of needs

The first step in training needs assessment is analyzing what training is needed. We should

analyse 3 groups of dates:

a)dates relevant to organization (structure of organization, production schedule,absenteeism)

b)dates relevant to particular job positions(description of job position and specification ofjob position),

c)dates about employees(staff appraisals, records about education and qualification, resultsof tests).

Identification andanalysis of needs

Implementation of thetraining plan

Evaluation Training Design

Business strategy


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Organizational Analyses. Training needs can be diagnosed by analyzing organizationaloutcomes and looking at future organizational needs. A part of planning for training is the

identification of the knowledge, skills and abilities that will be needed now and in the future

as both jobs and the organization change.

Job/Task Analyses. The second way of doing training analysis is to review the jobs involvedand the tasks performed in those jobs. By comparing the requirements of jobs with the

knowledge, skills and abilities of employees, training needs can be identified. Current job

specifications can be a source for such an analysis.

Individual Analyses.The third means of diagnosing training needs focuses on individualsand how they perform their jobs. The following sources are examples that are useful for

individual analyses:

performance appraisals, skill tests, individual assessment tests, records of critical incidents, questionnaires, job knowledge tools.The most common approach for making these individual analyses is to use performance

appraisal data. To assess training needs through the performance appraisal process, the

organization first determines an employees performance strengths and inadequacies in a

formal review. Then, it can design some type of training to help the employee overcome the

weaknesses and enhance the strengths. A training needs survey can take the form of

questionnaires or interviews with immediate supervisors and employees individually or in

groups (Mathis, Jackson, 2008).

Setting Training Objectives

After training needs have been analyzed, concrete, measurable training objectives should be

set. Objectives specify what the trainee should be able to accomplish after successfully

completing the training program. They thus provide a focus for the efforts of both the trainee

and the trainer and a benchmark for evaluating the success of the training program.

4.2.2 Training Design

Once training objectives have been determined training design can start. Whether job specific

or broader in nature, training must be designed to address the assessed specific needs.

Effective training design considers learning concepts and a wide range of different approaches

to training.


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Training plan

We have to know answers to these questions 8W:

1. What content? Task and content of training?2. Who to? Who should be trained?3. Which way? What kinds of methods?4. Who delivers? Who will be trained?5. When and how long?6. Where?7. What price? Training cost?8. Was it effective?

HRs Role in Succession Planning

Often HR has the primary responsibility for succession planning organization-wide. However,

for Chief executive officers and senior management succession efforts, top executives and

board members often have major involvement. Because of this, HR often performs the

following actions:

Identifying development needs of the workforce. Assisting executives/managers in identifying needed job skills. Participating in noting employees who might fill future positions. Communicating succession planning process to employees. Aiding in tracing and regularly updating succession plan efforts.Methods of the training

Regardless of the type of training done, a number of approaches and methods can be used to

deliver it.

On-The-Job Training

The most common type of training at all levels in an organization is on-the-job training (OJT)

because it is flexible and relevant to what employees do. Well-planned and well executed OJTcan be very effective. Based on a guided form of training known as job instruction training,

on-the-job training is most effective if a logical progression of stages is used, as shown in

Figure 4.3.

The most common methods of on the job training are:

Demonstration / instruction- showing the trainee how to do the job. Coaching. Mentoring. Job rotation- where the trainee is given several jobs in succession, to gain experience of a

wide range of activities (e.g. a graduate management trainee might spend periods in severaldifferent departments).


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questioning, listening, clarifying, reframing and many of the same models are used. However,

mentoring relationships can be much more long term, for example in a succession planning

scenario a regional finance director might be mentored by a group level counterpart where

they might learn the basics of dealing with the boardroom, presenting to analysts, challenging

departmental budgets, etc all in a supportive environment. Mentoring relationships work best

when they move beyond the directive approach of a senior colleague telling it how it is, to onewhere both learn from each other. An effective mentoring relationship is a learning

opportunity for both parties.

Advantages of on the job training

Generally more cost effective. Less disruptive to the business - i.e. employees are not away from work. Training an employee in their own working environment, with equipment they are familiar

with and people they know can help they gain direct experience to a standard approved by

the employer.

Employees may find that they have more confidence if they are supervised and guided asthey feel they are doing the job right.

Employees may feel more at ease being taught or supervised by people they know ratherthan complete strangers at an external training course.

Managers or supervisors can assess improvement and progress over a period of time andthis makes it easier to identify a problem intervene and resolve problems quickly.

On the job training is also productive, as the employee is still working as they are learning. As training progresses and the employee begins to feel more confident, this confidence

would allow them to work at a higher standard and ultimately be more productive.

Training "on-the-job" provides an opportunity to get to know staff they might not normallytalk to.

Disadvantages of on the job training

Teaching or coaching is a specialist skill in itself; unless the trainer has the skills andknowledge to train, this would mean that the training will not be done to a sufficient

standard.

The trainer may not be given the time to spend with the employee to teach them properly,which would mean substandard training has been achieved and learning has only been half

done.

The trainer may possess bad habits and pass these on to the trainee.

Off- The-Job TrainingThis is training provided away from the employees usual work environment and the

employee will stop their usual duties/work during the training. Off the job training may be in

the same building or off site. The most common methods of on the job training are: lecture,

demonstration, case studies, role play, team building and development centre.

Lecture. It is one of the oldest methods of training. This method is used to create

understanding of a topic or to influence behaviour, attitudes through lecture. A lecture can be

in printed or oral form. Lecture is telling someone about something. Lecture is given to

enhance the knowledge of listener or to give him the theoretical aspect of a topic.

Demonstration. This method is a visual display of how something works or how to do

something. As an example, trainer shows the trainees how to perform or how to do the tasks


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of the job. In order to be more effective, demonstration method should be accompanied by the

discussion or lecture method.

Case Studies try to simulate decision making situation that trainees may find at their workplace. It reflects the situations and complex problems faced by managers, staff, HR, etc. The

objective of the case study method is to get trainees to apply known concepts and ideologies

and ascertain new ones. The case study method emphasize on approach to see a particularproblem rather than a solution. Their solutions are not as important as the understanding of

advantages and disadvantages (Koubek, 2007).

Role playis a simulation in which each participant is given a role to play. Trainees are givenwith some information related to description of the role, concerns, objectives, responsibilities,

emotions, etc. Then, a general description of the situation, and the problem that each one of

them faces, is given. For instance, situation could be strike in factory, managing conflict, two

parties in conflict, scheduling vacation days, etc. Once the participants read their role

descriptions, they act out their roles by interacting with one another.

Role Plays helps in:

developing interpersonal skills and communication skills, conflict resolution, group decision making, developing insight into ones own behaviour and its impact on others.Team building in any organisation is all about the progression in improving the combinedperformance level of a group of people who work together towards a common purpose. Team

building can be defined as a process that makes the accomplishment of a common objective

possible for any given group of people. It is a facilitating process that allows them to focusand concentrate on the procedures that will allow them to achieve their goal in the fastest and

most efficient way possible. It quite simply starts off with a group and ends up with a team.

Most companies prefer to organize training programs for their employees at places that are

away from the city. This is because they feel their employees require a getaway from the

monotonous routine of day-to-day office functioning (Dessler, 1997).

Development centre. Development centres are collections of instruments and exercises

designed to diagnose individuals development needs. In a typical development centre

experience, an individual spends two or three days away from the job performing many

development activities. These activities might include role-playing, tests, leaderless-group

discussions, computer-based simulations and peer evaluations. Frequently, they also include

in-basket exercises, in which the individual handles typical work and management problems.

For the most part, the exercises represent situations that require the use of individual skills

and behaviours.

Advantages of off-the-job training:

Use of specialist trainers and accommodation. Employee can focus on the training - and not be distracted by work. Opportunity to mix with employees from other businesses.

Disadvantages of off-the-job training:

May not be directly relevant to the employee's job.


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Costs (transport, course fees, examination fees, materials, accommodation).Other methods of training and development

These methods can be used both on the job and off the job:

Trainee programs these programs are particularly established for students or graduates.Task: to prepare them for profession, to identify individual strengths/weaknesses. Theyperform various duties, they work at projects..

E-learning use of the internet or an organizational intranet to conduct training on-line.E Learning: On-Line Training

E.-learning is growing in popularity with employers. The major advantages are cost savings

and access to more employees. But e-learning has both advantages and disadvantages that

must be considered. In addition to being concerned about employee access to e-learning and

desire to use it, some employers worry that trainees will use e-learning to complete courses

quickly but will not retain and use much of what they learned. Figure 4.4 presents a listing ofe-learnings most commonly cited advantages and disadvantages (Mathis, Jackson , 2008).

Figure 4.4 Advantages and Disadvantages of E-Learning


4.2.3 Implementation of the training plan

This phase included these activities:

Preparation of training programs, choice of trainers. Negotiation of terms and conditions, conclusion of a contract. Organizational provision. Preparation of participants organizational information, meeting with trainers.

Advantages Disadvantages

Is self-paced; trainees can proceed ontheir own time

Is interactive, tapping multiple traineesenses

Enables scoring ofexercises/assessments and the

appropriate feedback

Incorporates built-in guidance andhelp for trainees to use when needed

Allows trainers to update contentrelatively easily

Can enhance instructor-led training Is good for presenting simple facts and

concepts

May cause trainee anxiety

Some trainees may not be interestedin how it is used

Requires easy and uninterruptedaccess to computers

Is not appropriate for some training Requires significant up-front

investment, both time and cost-wise Requires significant support from top

management to be successful


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Selecting Human Resource Development Methods

When a person is working on a car, some tools are more helpful in doing certain tasks than

others. The same logic applies when considering various HRD methods. Note the diverse

methods shown in Figure 4.5. Some methods apply strictly to managers and middle-levelprofessionals, others to operative employees, and several are used in the training and

development of both managers and operative employees.

Figure 4.5 Human Resource Development Methods

Utilized for Conducted

Methods Managersand Middle-LevelProfessionals

OperativeEmployees

Both On theJob

Off-theJob

Coaching/Mentoring x x

Case study x x

Role playing x x

Job rotation x x

Demonstration x x

Instruction x x

Projects x x

Assistant topositions

x x

Lecture x xTeam Building x x

Development Centre x x

E-learning x x

(Mondy, Noe, 1996, p. 243, modified)

4.2.4 Training Evaluation

Knowing there is a definitive need to measure the impacts of a large corporate cost like

learning it is fitting to have an industry acceptable model for doing so. This model is actually

one that has been in existence since the 1950s but continues to be accepted today usingtechnology and creativity to maximize its benefits for the modern corporation. Donald L.

Kirkpatrick identifies four levels at which training can be evaluated. Level Five is not a

Kirkpatrick step. Kirkpatrick alluded to ROI when he created level four linking training

results to business results. However, over time the need to measure the dollar value impact of

training became so important to organizations that a fifth level was added by Dr. Phillips, as

Figure 4.6 indicates.

Reaction.

Level one is a satisfaction survey. Per Kirkpatrick, evaluating reaction is the same thing as

measuring customer satisfaction. If training is going to be effective, it is important that

students react favourably to it. The instruments for conducting level one, valuations are

verbal reaction and questionnaires.


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Figure 4.6 Levels of Training Evaluation

(Robinson, 2006, p. 209, modified)

The guidelines for level one are as follows:

Determine what you want to find out. Design a form that will quantify the reactions. Encourage written comments and suggestions. Strive for 100% immediate response. Get honest responses. Develop acceptable standards/ benchmarks. Measure reactions against standards, and recommend appropriate action. Communicate reactions and actions as appropriate.

The benefits to conducting level one evaluation are:

A proxy for customer satisfaction. Immediate and real-time feedback on an investment. A mechanism to measure and manage learning providers, instructors, courses, locations,

and learning methodologies.

A way to control costs and strategically spend your budget dollars. If done properly, a way to gauge a perceived return on learning investment.Learning.

Level two is a test to determine if the learning transfer occurred. States Kirkpatrick, It isimportant to measure learning because no change in behaviour can be expected unless one or

ReactionDid the participants like the training?

LearningWhat knowledge, skills or attitudes changed after training? By

how much?

BehaviourDid the participants change their behavior on the job

based on what they learned?

ResultDid the change behavior positively affect the

or anization?

Investment Return - ROIWhat the training worth the

cost?


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more of these learning objectives have been accomplished. Measuring learning means

determining one or more of the following:

What knowledge was learned? What skills were developed or improved? What attitudes were changed?The guidelines for level two are as follows:

Use a control group, if practical. Evaluate knowledge, skills, and or attitudes both before and after the program. Use a test to measure knowledge and attitudes. Strive for 100% response. Use the results to take corrective actions.

The benefitsto conducting level two evaluations are:

Learner demonstrates the transfer of learning. Provides training managers with more conclusive evidence of training effectiveness.

The instruments for conducting level two valuations are:

Typically assessments or tests before and after the training. Interview or observation.Behaviour.Level three evaluates the job impact of training. What happens when trainees leave the

classroom and return to their jobs? How much transfer of knowledge, skill, and attitudes

occurs? Kirkpatrick questions, In other words, what change in job behaviour occurred

because people attended a training program?

The guidelines for level three are as follows:

Use a control group, if practical. Allow time for behaviour change to take place. Evaluate both before and after the program if practical. Survey or interview trainees, supervisors, subordinates and others who observe theirbehaviour. Strive for 100% response. Repeat the evaluation at appropriate times.The benefits to conducting level three evaluations are:

An indication of the time to job impact. An indication of the types of job impacts occurring (cost, quality, time, productivity).


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The instrumentsfor conducting level three valuations are:

Observation and interview over time to assess change, relevance of change, andsustainability of change.

Result.

According to Kirkpatrick, level four is the most important step and perhaps the most difficult

of all. Level four attempts to look at the business results that accrued because of the training.

The guidelines for level four are as follows:

Use a control group if practical. Allow time for results to be achieved. Measure both before and after the program, if practical. Repeat the measurement at appropriate time. Consider costs versus benefits. Be satisfied with evidence if proof not possible.

The benefits to conducting level four evaluations are:

Determine bottom line impact of training. Tie business objectives and goals to training.The instrumentsfor conducting level four valuations are:

Measures to be in place via normal management systems and reportingchallenge is torelate to the trainee.

Training Evaluation Metrics - Return on Investment ROI.

Level five is not a Kirkpatrick step. Kirkpatrick alluded to ROI when he created level

four linking training results to business results. However, over time the need to measure the

dollar value impact of training became so important to organizations that a fifth level was

added by Dr. Phillips.

The guidelines for level five are as follows:

Use a control group, if practical. Allow time for results to be achieved. Determine the direct costs of the training. Measure a productivity or performance before the training. Measure productivity or performance after the training. Measure the productivity or performance increase. Translate the increase into a dollar value benefit. Subtract the dollar value benefit from the cost of training. Calculate the ROI.


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4.3.3 Human Resource Training and Development Responsibilities

Training and developmet activities can be very expensive, requiring both time and money.

Much of the expense is due to employees taking time off from work to participate. So perhaps

the most important role of top-level executives is recognizing the value of training

investments and supporting such activities. As organizations begin to embrace a philosophy

of continuous learning and improvement, more active participation in the design and delivery

of the organizations training system by all stakeholders is seen as both desirable and

necessary.

Figure 4.11 shows how the responsibilities for ay familiar activity-training and development-

might be divided among the HR professionals, line managers and employees in an

organization.

Figure 4.11 Typical Division of HR Responsibilities: Training and Development


Provide technical information Prepares skill-training materials Seek to understand the objectives

of training and development

opportunities, and accept

responsibility for lifelong learning

Monitor training needs Coordinates training efforts Identify your own training anddevelopment needs with HRprofessionals and line managers

Conduct and monitor continuing

on-the-job training

Conducts or arranges for off-the-

job training

Consider employment

opportunities that will contribute to

own personal development and

long-term employabilityContinually discuss

employeesgrowth

Coordinates career plans Actively participate in training

and development opportunities

Participate in organizational

change

Provides input and expertise for

organizational development

Assist with the socialization,

training, and development of

coworkers

Participate in efforts to assess theeffectiveness of training anddevelopment activities

Evaluate the effectiveness oftraining and developmentactivities

Participate in efforts to assess theeffectiveness of training anddevelopment activities

Train and coach the line managers

and employees in how to socialize;

train and develop employees

(Mathis, Jackson, 2008, p. 10; Jackson, Schuler, Werner, 2009, p. 195)


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5.1 PERFORMANCE MANAGEMENT

Performance management system design is one of the key methods HR management uses to

contribute to organizational performance.

Performance management should originate with what the organization needs to accomplish to

meet its strategic objectives. Performance managementis a series of activities designed toensure that the organization gets the performance it needs from its employees. As Figure 5.1

shows, performance management links strategy to results. Performance appraisal is theprocess of determining how well employees do their job relative to a standard and

communicating that information to the employee (Mathis, Jackson, 2008).

Figure 5.1 Performance Management Linkage


Organizational Strategies

Performance ManagementIdentify expected performance levelsEncourage high levels of performanceMeasure individual performance, then evaluaceProvide feedback on individual performanceProvide assistance as neededReward or discipline depending on performance

Employee Performance

Performance Management OutcomesPay increasesIncentive rewardsPromotions/advancementTraining and developmentCareer planningDisciplinary actions

Organizational ResultsGoals met or not metEmployee satisfaction or dissatisfaction strong or teakCoordination between performance and pay


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An effective performance managementsystem should do the following:

Make clear what the organization expects. Provide performance information to employees. Identify areas of success and needed development. Document performance for personnel records.

5.1.1 Aims of Employees Appraisal

There are several reasons to appraise performance:

Appraisal provides feedback information about employees performance, what are theirworking outcomes to managers of organization and employees and how superiors look

upon their work.

Appraisal provide information upon which promotion and salary decisions can be made. Appraisals can benefit both employers and employees by improving job performance, by

making it easier to identify strengths and weaknesses and by determining suitability fordevelopment.

Appraisal gives information about employees potential and future needs. Appraisal identifies training and development needs and career plans.

Employees Appraisalhas two forms:

Informal continuous employee appraisal during his performance, it is part of everyday

relationship between superior and subordinate.

Purpose to give feedback to emloyees immediately after performance because employees

know what they do well and what they do bad. And how to work without making mistakes

in the future.

Formal(Periodical) is focused on appraisal and documentation of employee performancein former times, setting of future objectives, determination of the main trainnig and

development needs, support their motivation, make of carrer plans and to determine reward.

Decision About the Performance Appraisal Process

To develop an appraisal system we must decide about these things:

1.What to evaluate?2.When to conduct appraisals?

Most companies require managers to conduct appraisals once or twice a year, most oftenannually. Employees commonly receive an appraisal 60 days after hiring, again at six

months and annually thereafter.

3.Who should appraise employees?4.Which methods can be used for appraising performance?5.What are responsibilities of the HR department and of the operating managers?


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5.2 MEASURING EMPLOYEE PERFORMANCE

Performance criteria are the dimensions against which the performance of an incumbent, a

team, or a work unit is evaluated. There are differences in opinion about what should be

measured behaviours, results, or both? Behavioural focus on identifying the most critical

dimensions or competencies that are required to perform effectively on a job (e.g.,

Communication, Critical Thinking, Managing Resources, etc.) and defining behavioural

standards that describe levels of performance effectiveness in these. Standards of performance

are written statements describing how well a job should be performed. Performance standards

are developed collaboratively with employees, whenever possible, and explained to new

employees during the first month in the job. The performance standard provides a benchmark

against which to evaluate work performance. While the job description describes the essential

functions and the tasks to be done, the performance standard defines how well each function

or task must be performed in order to meet or exceed expectations.

Opponents of the behavioural-only view feel that an exclusive focus on behaviours is remiss

in no sufficiently emphasizing results that contribute to an organizations success. Advocates

of measuring behaviours say: 1. Assessment of bottom line results is problematic, becausethese can be impacted by factors that are outside an employees control or the result of team

efforts; 2. A focus on behaviours ensures that the performance measured is entirely within the

employees control; 3. Effective job behaviour leads to bottom-line results- and does so in a

manner that circumvents the problems associated with the direct measurement of results; 4.

All of the jobs performance requirements can be described on a set of rating scales, thereby

mitigating the deficiency problems objective measures suffer by only considering bottom line

results, without regard to how these were achieved.

The value of focusing on results and using these to drive performance has been a cornerstone

of many performance management trends, at least as far back as the MBO systems that were

popular in the 1970s. Advocates of measuring results say: 1. Measuring behaviour misses

whats really essential whether the individual delivered important bottom-line results; 2.Employees can engage in highly effective behaviours and never deliver results; 3. Employees

need specific goals and expectations that let them know what specific results they are

accountable for. Although results-oriented approaches to performance management are

intuitively appealing, an exclusive focus on results can in fact, yield a deficient performance

assessment because little or no consideration is given to how employees go about achieving

their results. While an organization can choose to focus exclusively on results or behaviours,

many have opted to include both because comprehensive performance assessment should

consider what someone has achieved (their results) as well as how they went about achieving

these (their job behaviour). (Pulakos, 2009)

5.2.1 Performance Standards

Performance standards define the expected levels of performance and are labelled benchmarks

or goals or targets depending on the approach taken. Specific, measurable, achievable,

realistic and clearly understood performance standards benefit both organizations and

employees. In a sense, performance standards define what satisfactory job performance. Well-

defined standards ensure that everyone involved knows the levels of accomplishment

expected (Mathis, Jackson, 2008).


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5.3 WHO SHOULD APPRAISE EMPLOYEES?

Many organizations have expanded the idea of upward feedback into what they call 360-

degree feedback. 360 degree feedback is a method and a tool that provides each employee

the opportunity to receive performance feedback from his or her immediate supervisor,

subordinates, co-workers and customers, as Figure 5.2 shows. Most 360 degree feedback tools

are also responded to by each individual in a self assessment.

360 degree feedback allows each individual to understand how his effectiveness as an

employee, co-worker, or staff member is viewed by others. The most effective 360 degree

feedback processes provide feedback that is based on behaviours that other employees can

see.

The feedback provides insight about the skills and behaviours desired in the organization to

accomplish the mission, vision, and goals and live the values. The feedback is firmly planted

in behaviours needed to exceed customer expectations.

The Immediate Supervisor.Supervisors ratings still are the heart of most appraisal systems.Getting a supervisors appraisal is relatively easy and also makes a great deal of sense. The

supervisor should be and usually is in the best position to observe and evaluate his or her

subordinates performance and is responsible for that persons performance.

Subordinates.Appraisal by subordinates can be a useful input to the immediate supervisors

development and the ratings are of significantly higher quality when used for that purpose.

Subordinates know firsthand the extent to which the supervisor actually delegates, how well

he or she communicates, the type of leadership style he or she is most comfortable with and

the extent to which he or she plans and organizes.

Figure 5.2 Multisource Appraisal

(Own processing)

Self-appraisal

(Person beingappraised)

Immediate

supervisor

Customers

Subordinates

Co-workers


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Peer Rating.The appraisal of an employee by his or her peers can be effective in predicting

future management success. Peer and team rating are especially useful when supervisors do

not have the opportunity to observe each employees performance but other work group

members do.

Self-Rating.Self appraisal is an important part of the performance appraisal process wherethe employee himself gives the feedback or his views and points regarding his performance.

Usually this is done with the help of a self appraisal form where the employee rates himself

on various parameters, tells about his training needs, if any, talks about his accomplishments,

strengths, weaknesses, problems faced etc.

Customers. Customers are often able to rate important aspects of the performance of

employees in front-line customer-contact position.

5.4 APPRAISAL METHODS

Performance can be appraised by a number of methods. Most organizations combine several

appraisal techniques.

Management by Objectives (MBO)

Management by Objectives involves setting specific measurable goals with each employee

and then periodically reviewing the progress made.

MBO is a three-stage process:

1. Meet to agree on the major objectives for a given period of time.2. Develop plans for how and when the objectives will be accomplished.3. Agree on that how the objectives will be measuredSetting of objectives.Individual, departmental and organization obj

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