Dear All,
Welcome to another useful thread from CRK's desk.
This thread is for sharing our knowledge on various aspects of Human Resource Management, its administration and functioning, useful articles, definitions, theory and practical scenarios.
You are invited to visit this thread frequently for continuous and regular postings on important aspects of HR.
Helpful contributions from Experts, Seniors, Experienced and also freshers are highly invited.
Hope this thread brings in lots of knowledge, refreshing the subject.
An Introduction -
Human Resource Management (HRM), a relatively new term, emerged during the 1930s. Many people used to refer to it before by its traditional titles, such as Personnel Administration or Personnel Management. But now, the trend is changing. It is now termed as Human Resource Management (HRM). Human Resource Management is a management function that helps an organization select, recruit, train and develop.
Human Resource Management is defined as the people who staff and manage the organization. It comprises the functions and principles that are applied to retaining, training, developing, and compensating the employees in the organization. It is also applicable to non-business organizations, such as education, healthcare, etc. Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness.
The scope of HRM without a doubt is vast. All the activities of an employee, from the time of his entry into an organization until he leaves, come under the horizon of HRM.
The divisions included in HRM are Recruitment, Payroll, Performance Management, Training and Development, Retention, Industrial Relation, etc., which will be discussed below in following posts.
Thanks & Regards
CRK
crk.mbahr@yahoo.com
Can also visit some other interesting threads from CRK's desk -
- [Stories Stories Stories - CRK's Desk](https://www.citehr.com/311518-stories-stories-stories-crks-desk.html)
- [Shocking Shock - CRK's Desk](https://www.citehr.com/281161-shocking-shock-crks-desk.html)
- [Amazing Quotes - CRK's Desk](https://www.citehr.com/312447-amazing-quotes-crks-desk.html)
- [Some Useful Tips - CRK's Desk](https://www.citehr.com/290175-some-useful-tips-crks-desk.html)
- [Stress Relief Techniques - CRK's Desk](https://www.citehr.com/257906-stress-relief-techniques-crks-desk.html)
- [Interesting Quotes from Famous Personalities - CRK's Desk](https://www.citehr.com/286937-interesting-quotes-famous-personalities-crks-desk.html)
- [Our Resume - Useful Thread for All Job Seekers - CRK's Desk](https://www.citehr.com/284503-our-resume-useful-thread-all-job-seekers-crks-desk.html)
- [Attitude - CRK's Desk](https://www.citehr.com/277912-attitude-crks-desk.html)
- [Something Strange - CRK's Desk](https://www.citehr.com/275013-something-strange-crks-desk.html)
All your contributions are highly invited.
From India, Vijayawada
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Amend(0)
82Welcome to another useful thread from CRK's desk.
This thread is for sharing our knowledge on various aspects of Human Resource Management, its administration and functioning, useful articles, definitions, theory and practical scenarios.
You are invited to visit this thread frequently for continuous and regular postings on important aspects of HR.
Helpful contributions from Experts, Seniors, Experienced and also freshers are highly invited.
Hope this thread brings in lots of knowledge, refreshing the subject.
An Introduction -
Human Resource Management (HRM), a relatively new term, emerged during the 1930s. Many people used to refer to it before by its traditional titles, such as Personnel Administration or Personnel Management. But now, the trend is changing. It is now termed as Human Resource Management (HRM). Human Resource Management is a management function that helps an organization select, recruit, train and develop.
Human Resource Management is defined as the people who staff and manage the organization. It comprises the functions and principles that are applied to retaining, training, developing, and compensating the employees in the organization. It is also applicable to non-business organizations, such as education, healthcare, etc. Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness.
The scope of HRM without a doubt is vast. All the activities of an employee, from the time of his entry into an organization until he leaves, come under the horizon of HRM.
The divisions included in HRM are Recruitment, Payroll, Performance Management, Training and Development, Retention, Industrial Relation, etc., which will be discussed below in following posts.
Thanks & Regards
CRK
crk.mbahr@yahoo.com
Can also visit some other interesting threads from CRK's desk -
- [Stories Stories Stories - CRK's Desk](https://www.citehr.com/311518-stories-stories-stories-crks-desk.html)
- [Shocking Shock - CRK's Desk](https://www.citehr.com/281161-shocking-shock-crks-desk.html)
- [Amazing Quotes - CRK's Desk](https://www.citehr.com/312447-amazing-quotes-crks-desk.html)
- [Some Useful Tips - CRK's Desk](https://www.citehr.com/290175-some-useful-tips-crks-desk.html)
- [Stress Relief Techniques - CRK's Desk](https://www.citehr.com/257906-stress-relief-techniques-crks-desk.html)
- [Interesting Quotes from Famous Personalities - CRK's Desk](https://www.citehr.com/286937-interesting-quotes-famous-personalities-crks-desk.html)
- [Our Resume - Useful Thread for All Job Seekers - CRK's Desk](https://www.citehr.com/284503-our-resume-useful-thread-all-job-seekers-crks-desk.html)
- [Attitude - CRK's Desk](https://www.citehr.com/277912-attitude-crks-desk.html)
- [Something Strange - CRK's Desk](https://www.citehr.com/275013-something-strange-crks-desk.html)
All your contributions are highly invited.
From India, Vijayawada
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[About.com]
[HR ROLE]
Human Resources Generalists, Managers, and Directors, depending on the size of the organization, may have overlapping responsibilities. In larger organizations, the Human Resources Generalist, the Manager, and the Director have clearly defined, separated roles in HR management with progressively more authority and responsibility in the hands of the Manager, the Director, and ultimately, the Vice President who may lead several departments including administration.
HR directors, and occasionally HR managers, may head up several different departments that are each led by functional or specialized HR staff such as the training manager, the compensation manager, or the recruiting manager.
Human Resources staff members are advocates for both the company and the people who work in the company. Consequently, a good HR professional performs a constant balancing act to meet both needs successfully.
[The Changing Human Resources Role]
The role of the HR professional is changing. In the past, HR managers were often viewed as the systematizing, policing arm of executive management. Their role was more closely aligned with personnel and administration functions that were viewed by the organization as paperwork. When you consider that the initial HR function, in many companies, comes out of the administration or finance department because hiring employees, paying employees, and dealing with benefits were the organization's first HR needs, this is not surprising.
In this role, the HR professional served executive agendas well, but was frequently viewed as a roadblock by much of the rest of the organization. While some need for this role occasionally remains—you wouldn't want every manager putting his own spin on a sexual harassment policy, as an example—much of the HR role is transforming itself.
[New HR Role]
The role of the HR manager must parallel the needs of his or her changing organization. Successful organizations are becoming more adaptable, resilient, quick to change direction, and customer-centered.
Within this environment, the HR professional, who is considered necessary by line managers, is a strategic partner, an employee sponsor or advocate, and a change mentor. At the same time, especially the HR Generalist, still has responsibility for employee benefits administration, often payroll, and employee paperwork, especially in the absence of an HR Assistant.
Depending on the size of the organization, the HR manager has responsibility for all of the functions that deal with the needs and activities of the organization's people including these areas of responsibility:
- Recruiting
- Hiring
- Training
- Organization Development
- Communication
- Performance Management
- Coaching
- Policy Recommendation
- Salary and Benefits
- Team Building
- Employee Relations
- Leadership
With all of this in mind, in Human Resource Champions, Dave Ulrich, one of the best thinkers and writers in the HR field today, and a professor at the University of Michigan, recommends three additional roles for the HR manager.
[HR Role: Business and Strategic Partner]
In today's organizations, to guarantee their viability and ability to contribute, HR managers need to think of themselves as strategic partners. In this role, the HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives.
The HR business objectives are established to support the attainment of the overall strategic business plan and objectives. The tactical HR representative is deeply knowledgeable about the design of work systems in which people succeed and contribute. This strategic partnership impacts HR services such as the design of work positions; hiring; reward, recognition and strategic pay; performance development and appraisal systems; career and succession planning; and employee development.
To be successful business partners, the HR staff members have to think like business people, know finance and accounting, and be accountable and responsible for cost reductions and the measurement of all HR programs and processes. It's not enough to ask for a seat at the executive table; HR people will have to prove they have the business savvy necessary to sit there.
[HR Role: Employee Advocate]
As an employee sponsor or advocate, the HR manager plays an integral role in organizational success via his knowledge about and advocacy of people. This advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing, and happy. Fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organization. The HR professional helps establish the organizational culture and climate in which people have the competency, concern, and commitment to serve customers well.
In this role, the HR manager provides employee development opportunities, employee assistance programs, gain-sharing and profit-sharing strategies, organization development interventions, due process approaches to problem-solving and regularly scheduled communication opportunities.
[HR Role: Change Champion]
The constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both knowledge about and the ability to execute successful change strategies make the HR professional exceptionally valued. Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change.
The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He also sponsors change in other departments and in work practices. To promote the overall success of his organization, he champions the identification of the organizational mission, vision, values, goals, and action plans. Finally, he helps determine the measures that will tell his organization how well it is succeeding in all of this.
[CRK]
From India, Vijayawada
Acknowledge(0)Amend(0)
[HR ROLE]
Human Resources Generalists, Managers, and Directors, depending on the size of the organization, may have overlapping responsibilities. In larger organizations, the Human Resources Generalist, the Manager, and the Director have clearly defined, separated roles in HR management with progressively more authority and responsibility in the hands of the Manager, the Director, and ultimately, the Vice President who may lead several departments including administration.
HR directors, and occasionally HR managers, may head up several different departments that are each led by functional or specialized HR staff such as the training manager, the compensation manager, or the recruiting manager.
Human Resources staff members are advocates for both the company and the people who work in the company. Consequently, a good HR professional performs a constant balancing act to meet both needs successfully.
[The Changing Human Resources Role]
The role of the HR professional is changing. In the past, HR managers were often viewed as the systematizing, policing arm of executive management. Their role was more closely aligned with personnel and administration functions that were viewed by the organization as paperwork. When you consider that the initial HR function, in many companies, comes out of the administration or finance department because hiring employees, paying employees, and dealing with benefits were the organization's first HR needs, this is not surprising.
In this role, the HR professional served executive agendas well, but was frequently viewed as a roadblock by much of the rest of the organization. While some need for this role occasionally remains—you wouldn't want every manager putting his own spin on a sexual harassment policy, as an example—much of the HR role is transforming itself.
[New HR Role]
The role of the HR manager must parallel the needs of his or her changing organization. Successful organizations are becoming more adaptable, resilient, quick to change direction, and customer-centered.
Within this environment, the HR professional, who is considered necessary by line managers, is a strategic partner, an employee sponsor or advocate, and a change mentor. At the same time, especially the HR Generalist, still has responsibility for employee benefits administration, often payroll, and employee paperwork, especially in the absence of an HR Assistant.
Depending on the size of the organization, the HR manager has responsibility for all of the functions that deal with the needs and activities of the organization's people including these areas of responsibility:
- Recruiting
- Hiring
- Training
- Organization Development
- Communication
- Performance Management
- Coaching
- Policy Recommendation
- Salary and Benefits
- Team Building
- Employee Relations
- Leadership
With all of this in mind, in Human Resource Champions, Dave Ulrich, one of the best thinkers and writers in the HR field today, and a professor at the University of Michigan, recommends three additional roles for the HR manager.
[HR Role: Business and Strategic Partner]
In today's organizations, to guarantee their viability and ability to contribute, HR managers need to think of themselves as strategic partners. In this role, the HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives.
The HR business objectives are established to support the attainment of the overall strategic business plan and objectives. The tactical HR representative is deeply knowledgeable about the design of work systems in which people succeed and contribute. This strategic partnership impacts HR services such as the design of work positions; hiring; reward, recognition and strategic pay; performance development and appraisal systems; career and succession planning; and employee development.
To be successful business partners, the HR staff members have to think like business people, know finance and accounting, and be accountable and responsible for cost reductions and the measurement of all HR programs and processes. It's not enough to ask for a seat at the executive table; HR people will have to prove they have the business savvy necessary to sit there.
[HR Role: Employee Advocate]
As an employee sponsor or advocate, the HR manager plays an integral role in organizational success via his knowledge about and advocacy of people. This advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing, and happy. Fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organization. The HR professional helps establish the organizational culture and climate in which people have the competency, concern, and commitment to serve customers well.
In this role, the HR manager provides employee development opportunities, employee assistance programs, gain-sharing and profit-sharing strategies, organization development interventions, due process approaches to problem-solving and regularly scheduled communication opportunities.
[HR Role: Change Champion]
The constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both knowledge about and the ability to execute successful change strategies make the HR professional exceptionally valued. Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change.
The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He also sponsors change in other departments and in work practices. To promote the overall success of his organization, he champions the identification of the organizational mission, vision, values, goals, and action plans. Finally, he helps determine the measures that will tell his organization how well it is succeeding in all of this.
[CRK]
From India, Vijayawada
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RECRUITMENT Attached some useful collected files on recruitment.. CRK
From India, Vijayawada
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From India, Vijayawada
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(Fact Checked)-[response] The user's reply on recruitment files is a valuable addition to HR knowledge sharing. Keep contributing! (1 Acknowledge point)
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Hi,
Greetings! I am Kartik, working as an HR Recruiter/Executive in a CMMI Level 3 company in Hyderabad, Andhra Pradesh. I just went through your postings. They are awesome and very helpful to the freshers who have started their career in HR.
Heaps of thanks,
Kartik
From India, Hyderabad
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Greetings! I am Kartik, working as an HR Recruiter/Executive in a CMMI Level 3 company in Hyderabad, Andhra Pradesh. I just went through your postings. They are awesome and very helpful to the freshers who have started their career in HR.
Heaps of thanks,
Kartik
From India, Hyderabad
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(Fact Checked)-[response] (1 Acknowledge point)
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Thankyou AVS for your response and feedback for most of my threads..... This thread goes a long way...... educating, refreshing, enhancing skills and knowledge sharing........:) CRK
From India, Vijayawada
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From India, Vijayawada
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(Fact Checked)-[response] Congratulations, your thread is indeed informative and engaging! (1 Acknowledge point)
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HI CRK its very good article and interesting...i am regular reader of cite hr as wel as your posting too i like specially your good morning sms and pic.. keep that good posting up!!!!! Regards Reema
From India, Gandhinagar
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From India, Gandhinagar
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RECRUITMENT
Contd..
Vacancy triggers recruitment process
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization
Recruitment process –
.. Identification of vacancy
.. Analyzing the vacant job
.. Applying the sources of recruitment (internal & external sources)
.. Screening of suitable resumes for interview
.. Initial interview with the candidates and shortlisting the suitable
.. Call candidates for further / final rounds of interviews
.. Selection of suitable candidates for the positions vacant
.. Complete the documentation process and verification
.. Issue offer letter
.. Perform the joining formalities
.. Recruit the personnel
.. Schedule induction programme for new joinees
.. Follow up of other HR activities
Sources of Recruitment –
(1) Internal sources
.. Internal job posting
.. Considering previous and current employees of the orgn.
(2) External sources
.. Employee reference
.. Application data bank
.. Advertising
.. Employment agencies
.. Schools & colleges
.. Job portals
Interviews
.. Personal interview is the most universally used tool in any selection process
.. Generally, an employment interview will serve 3 purposes
Obtaining information – About prospective employees background, work history, education and interests
Giving information – About company, specific job and personnel policies
Motivation – It will also help in establishing a friendly relationship between the employer and the applicant and motivate the satisfactory applicant to want to work for the company or orgn.
.. But in reality, it is not so. It helps only in obtaining information about the candidate. The other 2 purposes are generally not served
Types of interviews –
.. Informal interviews
It is not planned and is used when labour market is tight and we need workers badly. Sometimes a friend or relative may take a candidate to the house of the employer, where this type of interview may be conducted.
.. Formal interviews
It’s a planned interview. This is held in a formal atmosphere in employment office with a well structured questions. Here the interviewer has a plan of action, time to be devoted to each candidate, modality of interview and so on.
.. Patterned interviews
A well planned interview with higher degree of accuracy and precision. A list of questions and areas is carefully prepared. The interviewer goes down the list of questions, asking them one after another.
.. Non-directive interviews
Under this type, the candidate is allowed to express his opinion freely.
Interviewer is a careful and patient listener, prodding whenever the candidate is silent. The purpose of the interview is to give the candidate, complete freedom to sell himself without encumbrances of the interviewer’s questions.
.. In-depth interviews
It is intended to mainly examine the candidate’s background and thinking and to go into considerable detail on a particular subject of special interest to the candidate.
.. Stress interview
This method will test the candidate and his conduct & behaviour by putting him under conditions of stress and strain. This is more advantageous type as it tests the behaviour of individuals under disagreeable and trying situations.
.. Group interview
The candidates response and reaction will be tested. Candidates will be given a topic for discussion and be observed as to who will lead the discussion, how reasonable their views are, how they react to other’s opinions and so on.
.. Panel interview
The members of interview board will conduct the interview. This is done usually for supervisory and managerial positions. It coordinates the collective judgement and wisdom of the members of the panel.
Suggestions for improving the effectiveness of interviews –
.. An interview should follow a definite time schedule with ample time for
interview
.. The interview should be conducted in a calm and cool atmosphere
.. Interview should have necessary elements of privacy
.. The interview should not lead a mental tension and stress and should avoid arguments
.. Attention should be paid not only to the communication skills (if the job requirement can be satisfied with average of it), but also the managerial abilities and attitude
.. A panel should conduct the interview avoiding exhibiting their individual talent before other members, which causes inconvenience to the candidate
.. The interviewee should be informed about the method and maximum time in getting result
CRK
crk.mbahr@gmail.com
From India, Vijayawada
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Contd..
Vacancy triggers recruitment process
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization
Recruitment process –
.. Identification of vacancy
.. Analyzing the vacant job
.. Applying the sources of recruitment (internal & external sources)
.. Screening of suitable resumes for interview
.. Initial interview with the candidates and shortlisting the suitable
.. Call candidates for further / final rounds of interviews
.. Selection of suitable candidates for the positions vacant
.. Complete the documentation process and verification
.. Issue offer letter
.. Perform the joining formalities
.. Recruit the personnel
.. Schedule induction programme for new joinees
.. Follow up of other HR activities
Sources of Recruitment –
(1) Internal sources
.. Internal job posting
.. Considering previous and current employees of the orgn.
(2) External sources
.. Employee reference
.. Application data bank
.. Advertising
.. Employment agencies
.. Schools & colleges
.. Job portals
Interviews
.. Personal interview is the most universally used tool in any selection process
.. Generally, an employment interview will serve 3 purposes
Obtaining information – About prospective employees background, work history, education and interests
Giving information – About company, specific job and personnel policies
Motivation – It will also help in establishing a friendly relationship between the employer and the applicant and motivate the satisfactory applicant to want to work for the company or orgn.
.. But in reality, it is not so. It helps only in obtaining information about the candidate. The other 2 purposes are generally not served
Types of interviews –
.. Informal interviews
It is not planned and is used when labour market is tight and we need workers badly. Sometimes a friend or relative may take a candidate to the house of the employer, where this type of interview may be conducted.
.. Formal interviews
It’s a planned interview. This is held in a formal atmosphere in employment office with a well structured questions. Here the interviewer has a plan of action, time to be devoted to each candidate, modality of interview and so on.
.. Patterned interviews
A well planned interview with higher degree of accuracy and precision. A list of questions and areas is carefully prepared. The interviewer goes down the list of questions, asking them one after another.
.. Non-directive interviews
Under this type, the candidate is allowed to express his opinion freely.
Interviewer is a careful and patient listener, prodding whenever the candidate is silent. The purpose of the interview is to give the candidate, complete freedom to sell himself without encumbrances of the interviewer’s questions.
.. In-depth interviews
It is intended to mainly examine the candidate’s background and thinking and to go into considerable detail on a particular subject of special interest to the candidate.
.. Stress interview
This method will test the candidate and his conduct & behaviour by putting him under conditions of stress and strain. This is more advantageous type as it tests the behaviour of individuals under disagreeable and trying situations.
.. Group interview
The candidates response and reaction will be tested. Candidates will be given a topic for discussion and be observed as to who will lead the discussion, how reasonable their views are, how they react to other’s opinions and so on.
.. Panel interview
The members of interview board will conduct the interview. This is done usually for supervisory and managerial positions. It coordinates the collective judgement and wisdom of the members of the panel.
Suggestions for improving the effectiveness of interviews –
.. An interview should follow a definite time schedule with ample time for
interview
.. The interview should be conducted in a calm and cool atmosphere
.. Interview should have necessary elements of privacy
.. The interview should not lead a mental tension and stress and should avoid arguments
.. Attention should be paid not only to the communication skills (if the job requirement can be satisfied with average of it), but also the managerial abilities and attitude
.. A panel should conduct the interview avoiding exhibiting their individual talent before other members, which causes inconvenience to the candidate
.. The interviewee should be informed about the method and maximum time in getting result
CRK
crk.mbahr@gmail.com
From India, Vijayawada
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(Fact Checked)-The user's reply on the recruitment process is accurate and provides a comprehensive overview of the steps involved in recruitment, sources of recruitment, types of interviews, and suggestions for improving interview effectiveness. Well done! (1 Acknowledge point)
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Naukrihub
RECRUITMENT
Contd..
According to Edwin B. Flippo, recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation”. Recruitment is the activity that links the employers and the job seekers. A few definitions of recruitment are:
A process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.
It is the process to discover sources of manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.
Recruitment of candidates is the function preceding the selection, which helps create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool.
The main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. Usually, the recruitment process starts when a manger initiates an employee requisition for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE TYPES
PLANNED
i.e. the needs arising from changes in organization and retirement policy.
ANTICIPATED
Anticipated needs are those movements in personnel, which an organization can predict by studying trends in internal and external environment.
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs
PURPOSE & IMPORTANCE OF RECRUITMENT
The Purpose and Importance of Recruitment are given below:
Attract and encourage more and more candidates to apply in the organisation.
Create a talent pool of candidates to enable the selection of best candidates for the organisation.
Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.
recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its workforce.
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants
RECRUITMENT PROCESS
The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the recruitment strategic advantage for the organisations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows:
Identifying the vacancy:
The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
Preparing the job description and person specification.
Locating and developing the sources of required number and type of employees (Advertising etc).
Short-listing and identifying the prospective employee with required characteristics.
Arranging the interviews with the selected candidates.
Conducting the interview and decision making
<image no longer exists>
The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities
SOURCES OF RECRUITMENT
Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment
<image no longer exists>
FACTORS EFFECTING RECRUITMENT
The recruitment function of the organisations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organisation. And the external factors are those factors which cannot be controlled by the organisation. The internal and external forces affecting recruitment function of an organisation are:
<image no longer exists>
RECRUITMENT POLICY OF A COMPANY
In today’s rapidly changing business environment, a well defined recruitment policy is necessary for organizations to respond to its human resource requirements in time. Therefore, it is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and concise recruitment policy helps ensure a sound recruitment process.
It specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. It may involve organizational system to be developed for
implementing recruitment programmes and procedures by filling up vacancies with best qualified people.
COMPONENTS OF THE RECRUITMENT POLICY
The general recruitment policies and terms of the organisation
Recruitment services of consultants
Recruitment of temporary employees
Unique recruitment situations
The selection process
The job descriptions
The terms and conditions of the employment
A recruitment policy of an organisation should be such that:
It should focus on recruiting the best potential people.
To ensure that every applicant and employee is treated equally with dignity and respect.
Unbiased policy.
To aid and encourage employees in realizing their full potential.
Transparent, task oriented and merit based selection.
Weightage during selection given to factors that suit organization needs.
Optimization of manpower at the time of selection process.
Defining the competent authority to approve each selection.
Abides by relevant public policy and legislation on hiring and employment relationship.
Integrates employee needs with the organisational needs.
FACTORS AFFECTING RECRUITMENT POLICY
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
RECENT TRENDS IN RECRUITMENT
The following trends are being seen in recruitment:
OUTSOURCING
In India, the HR processes are being outsourced from more than a decade now. A company may draw required personnel from outsourcing firms. The outsourcing firms help the organisation by the initial screening of the candidates according to the needs of the organisation and creating a suitable pool of talent for the final selection by the organisation. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organisations for their services.
Advantages of outsourcing are:
Company need not plan for human resources much in advance.
Value creation, operational flexibility and competitive advantage
turning the management's focus to strategic level processes of HRM
Company is free from salary negotiations, weeding the unsuitable resumes/candidates.
Company can save a lot of its resources and time
POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by the organisations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organisation might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software and the retail sector are the sectors facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.
E-RECRUITMENT
Many big organizations use Internet as a source of recruitment. E-recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.
Advantages of recruitment are:
Low cost.
No intermediaries
Reduction in time for recruitment.
Recruitment of right type of people.
Efficiency of recruitment process.
RECRUITMENT Vs. SELECTION
Both recruitment and selection are the two phases of the employment process. The differences between the two are:
1. The recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation WHEREAS the basic purpose of selection process is to choose the right candidate to
fill the various positions in the organisation.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.
4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests.
5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee
TYPES OF JOB SEEKERS
1. Quid Pro Que
These are the people who say that “ I can do this for you, what can you give me” These people value high responsibilities, higher risks, and expect higher rewards, personal development and company profiles doesn’t matter to them.
2. I will be with you
These people like to be with big brands. Importance is given to brands. They are not bothered about work ethic, culture mission etc.
3. I will do you what you want
These people are concerned about how meaningful the job is and they define meaning parameters criteria known by previous job.
4. Where do you want me to come
These people observe things like where is your office, what atmosphere do you offer. Career prospects and exciting projects don’t entice them as much. It is the responsibility of the recruiter to decide what the employee might face in given job and thus take decision. A good decision will help cut down employee retention costs and future recruitment costs
CRK
From India, Vijayawada
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HI CRK,
Am back. How are you? Wow!!! another useful thread. Thanks for the sharing.
Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organisation are a vital resource and can be a core competency or a strategic advantage for it.
The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organisation to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool.
Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organisation.
From India, Madras
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Am back. How are you? Wow!!! another useful thread. Thanks for the sharing.
Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organisation are a vital resource and can be a core competency or a strategic advantage for it.
The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organisation to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool.
Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organisation.
<image no longer exists>
Recruitment Management System :
Recruitment management system is the comprehensive tool to manage the entire recruitment processes of an organisation. It is one of the technological tools facilitated by the information management systems to the HR of organisations. Just like performance management, payroll and other systems, Recruitment management system helps to contour the recruitment processes and effectively managing the ROI on recruitment. The features, functions and major benefits of the recruitment management system are explained below:
- Structure and systematically organize the entire recruitment processes.
- Recruitment management system facilitates faster, unbiased, accurate and reliable processing of applications from various applications.
Helps to reduce the time-per-hire and cost-per-hire.- Recruitment management system helps to incorporate and integrate the various links like the application system on the official website of the company, the unsolicited applications, outsourcing recruitment, the final decision making to the main recruitment process.
- Recruitment management system maintains an automated active database of the applicants facilitating the talent management and increasing the efficiency of the recruitment processes.
- Recruitment management system provides and a flexible, automated and interactive interface between the online application system, the recruitment department of the company and the job seeker.
- Offers tolls and support to enhance productivity, solutions and optimizing the recruitment processes to ensure improved ROI.
- Recruitment management system helps to communicate and create healthy relationships with the candidates through the entire recruitment process.
From India, Madras
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RECRUITMENT & HIRING
There is some ambiguity when it comes to recruiting and knowing what and what not to do. Is it right to only let the 'ideal' people join your team? Or should you consider recruitment in your business to be like an adding game of numbers? The answer is simple, and the comparison of recruitment and hiring an employee is written clearly below for you. It has been a while since we've updated you with new content, so here it is as promised, right during the holiday season!
[img]http://t2.gstatic.com/images?q=tbn:ANd9GcR0gNmCjvRrmWa7Jj6FeicDxlpV4QH8W Wl1SoiLUkovLLSRoxCASA[/img]
The Differences:
Spotting them: An employee is found using a job description and specification, usually displayed in a job advert. Recruitment, on the other hand, is usually done in person, over the phone, or face-to-face. It is common for recruitment to be done online, but this has some setbacks, especially if the recruit is not located near you.
Reeling them in: For hiring, an employee will respond and apply for the job. However, for recruitment, it is up to the consultant (that's you) to find the right people for your team and to get them interested in the opportunity (and to sign up).
Selection process: While most businesses look for the best candidate, direct sales look for anyone. That is because in this industry, training and resources are immediately provided. In addition, it is up to the person to achieve their goals. Even some of the most coy or less experienced people can turn into real go-getters.
The Benefits: When hiring, it's all about the remuneration and pay. When being self-employed, it is about discounts, commission, bonuses, extra incentives like a company car/holiday – and naturally working from home at your own pace and hours!
Expectations: When hiring an employee, you can expect the most from them. For direct sales or party plan, you cannot expect anything from them. All you need to do is make sure you're there for them. To do this, supply your contact details and keep them updated on company news, even if they're not performing. It is common for a team of consultants to do poorly in their first year.
So the idea is numbers and adding more great people to your team. Remember to select people that will grow, motivate others, and become great achievers. This is when selecting the right prospects. However, if someone or anyone wants to join your team and they're generally a good person – let them! You never know who will be your next platinum seller or a sitting duck
CRK
From India, Vijayawada
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Hi, Malini,
I am fine, thank you. Welcome to another useful thread. Glad to see your good and useful contributions in my threads. Keep visiting and keep posting.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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I am fine, thank you. Welcome to another useful thread. Glad to see your good and useful contributions in my threads. Keep visiting and keep posting.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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Thank you, CRK and Malini, for your excellent posts. As my humble appreciation, I just quote: "Sharing information is an art. But sharing 'useful' information is smart." Hats off to both of you.
AVS
From India, Madras
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AVS
From India, Madras
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TRAINING & DEVELOPMENT
TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in a structured format.
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVELOPMENT
Traditional Approach –
Most of the organizations before never used to believe in training. They held the traditional view that managers are born and not made. Some also believed training was a costly affair and not worth it. Organizations relied more on executive pinching. However, the scenario seems to be changing now.
The modern approach to training and development is that Indian organizations have realized the importance of corporate training. Training is now seen as more of a retention tool than a cost. The training system in the Indian industry has been revamped to create a smarter workforce and yield the best results.
TRAINING AND DEVELOPMENT OBJECTIVES
The principal objective of the training and development division is to ensure the availability of a skilled and willing workforce for an organization. Additionally, there are four other objectives: Individual, Organizational, Functional, and Societal.
Individual Objectives –
These objectives aim to help employees achieve their personal goals, which, in turn, enhance their individual contributions to the organization.
Organizational Objectives –
These objectives help the organization achieve its primary goals by enhancing individual effectiveness.
Functional Objectives –
These objectives focus on maintaining the department’s contribution at a level that aligns with the organization’s needs.
Societal Objectives –
These objectives ensure that an organization is ethically and socially responsible to the needs and challenges of society.
TRAINING DEFINED
Training is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance employee performance.
Training is an activity that leads to skilled behavior.
It's not just about what you want in life but knowing how to reach it.
It's not only about where you want to go but understanding how to get there.
It's not solely about how high you want to rise but about knowing how to take off. It may not always result in the outcome you aimed for, but it will be an outcome.
It's not just about what you dream of doing but having the knowledge to do it.
It's not merely a set of goals but more akin to a vision.
It's not about the goal you set but about what you need to achieve it. Training is about understanding your current standing, regardless of how good or bad the situation may seem, and where you will be after a certain period.
Training is about acquiring knowledge, skills, and abilities (KSA) through professional development.
ROLE OF TRAINING
IMPORTANCE OF TRAINING & DEVELOPMENT
Optimum Utilization of Human Resources –
Training and development help optimize human resource utilization, enabling employees to achieve both organizational and individual goals.
Development of Human Resources –
Training and development provide opportunities and a broad structure for developing the technical and behavioral skills of human resources within an organization. It also supports employees in personal growth.
Development of Employee Skills –
Training and development aid in enhancing job knowledge and skills at all levels, expanding employees' intellectual horizons and overall personality.
Productivity –
Training and development contribute to increased employee productivity, aiding organizations in achieving long-term goals.
Team Spirit –
Training and development foster teamwork, team spirit, and inter-team collaborations, instilling a desire for learning among employees.
Organizational Culture –
Training and development help develop and improve organizational health culture and effectiveness, fostering a learning culture within the organization.
Organization Climate –
Training and development aid in creating positive perceptions and feelings about the organization, which employees derive from leaders, subordinates, and peers.
Quality –
Training and development contribute to improving work quality and work-life balance.
Healthy Work Environment –
Training and development help create a healthy work environment, fostering good employee relationships that align individual goals with organizational objectives.
Health and Safety –
Training and development contribute to improving organizational health and safety, preventing obsolescence.
Morale –
Training and development help boost workforce morale.
Image –
Training and development aid in creating a better corporate image.
Profitability –
Training and development lead to improved profitability and foster more positive attitudes towards profit orientation.
Training and development support organizational development, facilitating more effective decision-making and problem-solving. They aid in understanding and implementing organizational policies.
TRAINING OBJECTIVES
Training objectives are a crucial component of any training program. While some may consider training objectives a waste of time, they actually guide the design of training programs. They provide clear guidelines and streamline program development, focusing specifically on needs and aiding in adherence to a plan.
Training objectives inform trainees of what is expected of them by the end of the training program. They hold great significance from various stakeholder perspectives:
1. Trainer
2. Trainee
3. Designer
4. Evaluator
Trainer –
Training objectives benefit trainers by aiding in measuring trainee progress and making necessary adjustments. They help establish a relationship between objectives and specific training segments.
Trainee –
Training objectives reduce trainee anxiety to some extent by providing clarity on expectations. Uncertainty or unfamiliarity can hinder learning, so keeping participants informed is crucial. Additionally, objectives enhance concentration, a key factor in successful training. They create a mental image of the training program that aids in maintaining attention. Setting challenging and motivating goals increases the likelihood of training success.
Designer –
Training objectives assist training designers in aligning training packages with desired outcomes. Designers select appropriate training methods, equipment, and content to achieve these objectives. Planning based on objectives helps in effectively managing unexpected situations. For instance, if a program's objective is to enhance customer interactions for increased sales, the designer will incorporate interpersonal skills enhancement in the program, addressing verbal and non-verbal communication and handling unexpected scenarios like product defects or customer dissatisfaction.
Without clear objectives, training may not be designed appropriately.
Evaluator –
Training evaluators find it easier to assess trainee progress with clearly defined objectives. Objectives establish expected trainee performance, providing a valuable tool for evaluating participant performance.
...to be continued
CRK
From India, Vijayawada
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Role of HRD Professionals in Training
This is the era of cut-throat competition and with this changing scenario of business; the role of HR professionals in training has been widened. HR role now is:
1. Active involvement in employee education
2. Rewards for improvement in performance
3. Rewards to be associated with self esteem and self worth
4. Providing pre-employment market oriented skill development education and post employment support for advanced education and training
5. Flexible access i.e. anytime, anywhere training
THE TRAINING SYSTEM
A System is a combination of things or parts that must work together to perform a particular function. An organization is a system and training is a sub system of the organization.
The System Approach views training as a sub system of an organization. System Approach can be used to examine broad issues like objectives, functions, and aim. It establishes a logical relationship between the sequential stages in the process of training need analysis (TNA), formulating, delivering, and evaluating.
There are 4 necessary inputs i.e. technology, man, material, time required in every system to produce products or services. And every system must have some output from these inputs in order to survive. The output can be tangible or intangible depending upon the organization’s requirement. A system approach to training is planned creation of training program. This approach uses step-by-step procedures to solve the problems. Under systematic approach, training is undertaken on planned basis. Out of this planned effort, one such basic model of five steps is system model that is explained below.
Organisation are working in open environment i.e. there are some internal and external forces, that poses threats and opportunities, therefore, trainers need to be aware of these forces which may impact on the content, form, and conduct of the training efforts. The internal forces are the various demands of the organization for a better learning environment; need to be up to date with the latest technologies.
The three model of training are:
1. System model
2. Instructional System Development model
3. Transitional model
System model :
The system model consists of five phases and should be repeated on a regular basis to make further improvements. The training should achieve the purpose of helping employee to perform their work to required standards. The steps involved in System Model of training are as follows:
1. Analyze and identify the training needs i.e. to analyze the department, job, employees requirement, who needs training, what do they need to learn, estimating training cost, etc The next step is to develop a performance measure on the basis of which actual performance would be evaluated.
2. Design and provide training to meet identified needs. This step requires developing objectives of training, identifying the learning steps, sequencing and structuring the contents.
<image no longer exists>
3. Develop- This phase requires listing the activities in the training program that will assist the participants to learn, selecting delivery method, examining the training material, validating information to be imparted to make sure it accomplishes all the goals & objectives.
4. Implementing is the hardest part of the system because one wrong step can lead to the failure of whole training program.
5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work performance. Making necessary amendments to any of the previous stage in order to remedy or improve failure practices
Instructional System Development model
Instructional System Development model or ISD training model was made to answer the training problems. This model is widely used now-a-days in the organization because it is concerned with the training need on the job performance. Training objectives are defined on the basis of job responsibilities and job description and on the basis of the defined objectives individual progress is measured. This model also helps in determining and developing the favorable strategies, sequencing the content, and delivering media for the types of training objectives to be achieved.
The Instructional System Development model comprises of five stages:
1. ANALYSIS – This phase consist of training need assessment, job analysis, and target audience analysis
2. PLANNING – This phase consist of setting goal of the learning outcome, instructional objectives that measures behavior of a participant after the training, types of training material, media selection, methods of evaluating the trainee, trainer and the training program, strategies to impart knowledge i.e. selection of content, sequencing of content, etc
<image no longer exists>
3. DEVELOPMENT – This phase translates design decisions into training material. It consists of developing course material for the trainer including handouts, workbooks, visual aids, demonstration props, etc, course material for the trainee including handouts of summary.
4. EXECUTION – This phase focuses on logistical arrangements, such as arranging speakers, equipments, benches, podium, food facilities, cooling, lighting, parking, and other training accessories.
5. EVALUATION – The purpose of this phase is to make sure that the training program has achieved its aim in terms of subsequent work performance. This phase consists of identifying strengths and weaknesses and making necessary amendments to any of the previous stage in order to remedy or improve failure practices.
The ISD model is a continuous process that lasts throughout the training program. It also highlights that feedback is an important phase throughout the entire training program. In this model, the output of one phase is an input to the next phase
Transitional model
Transitional model focuses on the organization as a whole. The outer loop describes the vision, mission and values of the organization on the basis of which training model i.e. inner loop is executed.
Vision – focuses on the milestones that the organization would like to achieve after the defined point of time. A vision statement tells that where the organization sees itself few years down the line. A vision may include setting a role mode, or bringing some internal transformation, or may be promising to meet some other deadlines.
Mission – explain the reason of organizational existence. It identifies the position in the community. The reason of developing a mission statement is to motivate, inspire, and inform the employees regarding the organization. The mission statement tells about the identity that how the organization would like to be viewed by the customers, employees, and all other stakeholders.
<image no longer exists>
Values – is the translation of vision and mission into communicable ideals. It reflects the deeply held values of the organization and is independent of current industry environment. For example, values may include social responsibility, excellent customer service, etc.
The mission, vision, and values precede the objective in the inner loop. This model considers the organization as a whole. The objective is formulated keeping these three things in mind and then the training model is further implemented.
From India, Madras
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This is the era of cut-throat competition and with this changing scenario of business; the role of HR professionals in training has been widened. HR role now is:
1. Active involvement in employee education
2. Rewards for improvement in performance
3. Rewards to be associated with self esteem and self worth
4. Providing pre-employment market oriented skill development education and post employment support for advanced education and training
5. Flexible access i.e. anytime, anywhere training
THE TRAINING SYSTEM
A System is a combination of things or parts that must work together to perform a particular function. An organization is a system and training is a sub system of the organization.
The System Approach views training as a sub system of an organization. System Approach can be used to examine broad issues like objectives, functions, and aim. It establishes a logical relationship between the sequential stages in the process of training need analysis (TNA), formulating, delivering, and evaluating.
There are 4 necessary inputs i.e. technology, man, material, time required in every system to produce products or services. And every system must have some output from these inputs in order to survive. The output can be tangible or intangible depending upon the organization’s requirement. A system approach to training is planned creation of training program. This approach uses step-by-step procedures to solve the problems. Under systematic approach, training is undertaken on planned basis. Out of this planned effort, one such basic model of five steps is system model that is explained below.
Organisation are working in open environment i.e. there are some internal and external forces, that poses threats and opportunities, therefore, trainers need to be aware of these forces which may impact on the content, form, and conduct of the training efforts. The internal forces are the various demands of the organization for a better learning environment; need to be up to date with the latest technologies.
The three model of training are:
1. System model
2. Instructional System Development model
3. Transitional model
System model :
The system model consists of five phases and should be repeated on a regular basis to make further improvements. The training should achieve the purpose of helping employee to perform their work to required standards. The steps involved in System Model of training are as follows:
1. Analyze and identify the training needs i.e. to analyze the department, job, employees requirement, who needs training, what do they need to learn, estimating training cost, etc The next step is to develop a performance measure on the basis of which actual performance would be evaluated.
2. Design and provide training to meet identified needs. This step requires developing objectives of training, identifying the learning steps, sequencing and structuring the contents.
<image no longer exists>
3. Develop- This phase requires listing the activities in the training program that will assist the participants to learn, selecting delivery method, examining the training material, validating information to be imparted to make sure it accomplishes all the goals & objectives.
4. Implementing is the hardest part of the system because one wrong step can lead to the failure of whole training program.
5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work performance. Making necessary amendments to any of the previous stage in order to remedy or improve failure practices
Instructional System Development model
Instructional System Development model or ISD training model was made to answer the training problems. This model is widely used now-a-days in the organization because it is concerned with the training need on the job performance. Training objectives are defined on the basis of job responsibilities and job description and on the basis of the defined objectives individual progress is measured. This model also helps in determining and developing the favorable strategies, sequencing the content, and delivering media for the types of training objectives to be achieved.
The Instructional System Development model comprises of five stages:
1. ANALYSIS – This phase consist of training need assessment, job analysis, and target audience analysis
2. PLANNING – This phase consist of setting goal of the learning outcome, instructional objectives that measures behavior of a participant after the training, types of training material, media selection, methods of evaluating the trainee, trainer and the training program, strategies to impart knowledge i.e. selection of content, sequencing of content, etc
<image no longer exists>
3. DEVELOPMENT – This phase translates design decisions into training material. It consists of developing course material for the trainer including handouts, workbooks, visual aids, demonstration props, etc, course material for the trainee including handouts of summary.
4. EXECUTION – This phase focuses on logistical arrangements, such as arranging speakers, equipments, benches, podium, food facilities, cooling, lighting, parking, and other training accessories.
5. EVALUATION – The purpose of this phase is to make sure that the training program has achieved its aim in terms of subsequent work performance. This phase consists of identifying strengths and weaknesses and making necessary amendments to any of the previous stage in order to remedy or improve failure practices.
The ISD model is a continuous process that lasts throughout the training program. It also highlights that feedback is an important phase throughout the entire training program. In this model, the output of one phase is an input to the next phase
Transitional model
Transitional model focuses on the organization as a whole. The outer loop describes the vision, mission and values of the organization on the basis of which training model i.e. inner loop is executed.
Vision – focuses on the milestones that the organization would like to achieve after the defined point of time. A vision statement tells that where the organization sees itself few years down the line. A vision may include setting a role mode, or bringing some internal transformation, or may be promising to meet some other deadlines.
Mission – explain the reason of organizational existence. It identifies the position in the community. The reason of developing a mission statement is to motivate, inspire, and inform the employees regarding the organization. The mission statement tells about the identity that how the organization would like to be viewed by the customers, employees, and all other stakeholders.
<image no longer exists>
Values – is the translation of vision and mission into communicable ideals. It reflects the deeply held values of the organization and is independent of current industry environment. For example, values may include social responsibility, excellent customer service, etc.
The mission, vision, and values precede the objective in the inner loop. This model considers the organization as a whole. The objective is formulated keeping these three things in mind and then the training model is further implemented.
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Training Design
The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clears what goal has to be achieved by the end of training program i.e. what the trainees are expected to be able to do at the end of their training. Training objectives assist trainers to design the training program.
The trainer – Before starting a training program, a trainer analyzes his technical, interpersonal, judgmental skills in order to deliver quality content to trainers.
The trainees – A good training design requires close scrutiny of the trainees and their profiles. Age, experience, needs and expectations of the trainees are some of the important factors that affect training design
Training climate – A good training climate comprises of ambience, tone, feelings, positive perception for training program, etc. Therefore, when the climate is favorable nothing goes wrong but when the climate is unfavorable, almost everything goes wrong.
Trainees’ learning style – the learning style, age, experience, educational background of trainees must be kept in mind in order to get the right pitch to the design of the program.
Training strategies – Once the training objective has been identified, the trainer translates it into specific training areas and modules. The trainer prepares the priority list of about what must be included, what could be included.
Training topics – After formulating a strategy, trainer decides upon the content to be delivered. Trainers break the content into headings, topics, ad modules. These topics and modules are then classified into information, knowledge, skills, and attitudes.
Sequence the contents – Contents are then sequenced in a following manner:
- From simple to complex
- Topics are arranged in terms of their relative importance
- From known to unknown
- From specific to general
- Dependent relationship
- Trainees’ background
- Time allocated
- Style preference of trainer
- Level of competence of trainer
- Availability of facilities and resources, etc
Support facilities – It can be segregated into printed and audio visual. The various requirements in a training program are white boards, flip charts, markers, etc.
Constraints – The various constraints that lay in the trainers mind are:
(a) Time
(b) Accommodation, facilities and their availability
(c) Furnishings and equipments
(d) Budget
(e) Design of the training, etc
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TRAINING & DEVELOPMENT
Contd..
OUTSOURCING OF TRAINING
Training consultancy provides industry professional to work with an organization in achieving its training and development objectives.
Estimation of Training Outsourcing
It has been estimated that 58% of the emerging market in training outsourcing is in customer education, while only 42 percent of the market is in employee education.
The training consultancies offer various benefits such as:
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Training Courses that Consultancies Offer
The various courses that consultancies offer are:
Business Training Courses
Management Development
Conflict Management
Managing Diversity
Project Management
Stress Management
Time Management
Senior Management Workshops
Sales
Negotiation Skills
Sales Technique
Customer Care
Customer Care Training
Managing Customers
Human Resource
HR Administration
Induction Training
Recruitment & Selection
Successful Appraising
Personal Development Courses
Workshops on:
Assertive Skills
Building Confidence
Coping with Change
Interview Techniques
Maximize Potential
One to One Coaching
Focused entirely on personal objectives
Move forward at individual pace
Material used in tailor made to specific development Need
A strict code of confidentiality
Importance of Training Consultancies
It helps in enhancing company’s image
It helps in strengthening the team spirit
It helps in applying knowledge, developing core competencies, and reducing work load
It helps in improving the work relations
It helps in developing focused and inspired staff
It leads to greater chances of success
Consultants can provide help on following areas:
Management Development
Team Building Leadership
Health & Safety Training
Interpersonal Skills
Sales Training
Example: T.V. Rao Learning Systems is a popular training consultancy in India.
HRM IN TRAINING
The HR functioning is changing with time and with this change, the relationship between the training function and other management activity is also changing. The training and development activities are now equally important with that of other HR functions. Gone are the days, when training was considered to be futile, waste of time, resources, and money. Now a days, training is an investment because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. If training is not considered as a priority or not seen as a vital part in the organization, then it is difficult to accept that such a company has effectively carried out HRM. Training actually provides the opportunity to raise the profile development activities in the organization.
To increase the commitment level of employees and growth in quality movement (concepts of HRM), senior management team is now increasing the role of training. Such concepts of HRM require careful planning as well as greater emphasis on employee development and long term education. Training is now the important tool of Human Resource Management to control the attrition rate because it helps in motivating employees, achieving their professional and personal goals, increasing the level of job satisfaction, etc. As a result training is given on a variety of skill development and covers a multitude of courses.
Role of HRD Professionals in Training
This is the era of cut-throat competition and with this changing scenario of business; the role of HR professionals in training has been widened. HR role now is:
1. Active involvement in employee education
2. Rewards for improvement in performance
3. Rewards to be associated with self esteem and self worth
4. Providing pre-employment market oriented skill development education and post employment support for advanced education and training
5. Flexible access i.e. anytime, anywhere training
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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OUTSOURCING OF TRAINING
Training consultancy provides industry professional to work with an organization in achieving its training and development objectives.
Estimation of Training Outsourcing
It has been estimated that 58% of the emerging market in training outsourcing is in customer education, while only 42 percent of the market is in employee education.
The training consultancies offer various benefits such as:
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Training Courses that Consultancies Offer
The various courses that consultancies offer are:
Business Training Courses
Management Development
Conflict Management
Managing Diversity
Project Management
Stress Management
Time Management
Senior Management Workshops
Sales
Negotiation Skills
Sales Technique
Customer Care
Customer Care Training
Managing Customers
Human Resource
HR Administration
Induction Training
Recruitment & Selection
Successful Appraising
Personal Development Courses
Workshops on:
Assertive Skills
Building Confidence
Coping with Change
Interview Techniques
Maximize Potential
One to One Coaching
Focused entirely on personal objectives
Move forward at individual pace
Material used in tailor made to specific development Need
A strict code of confidentiality
Importance of Training Consultancies
It helps in enhancing company’s image
It helps in strengthening the team spirit
It helps in applying knowledge, developing core competencies, and reducing work load
It helps in improving the work relations
It helps in developing focused and inspired staff
It leads to greater chances of success
Consultants can provide help on following areas:
Management Development
Team Building Leadership
Health & Safety Training
Interpersonal Skills
Sales Training
Example: T.V. Rao Learning Systems is a popular training consultancy in India.
HRM IN TRAINING
The HR functioning is changing with time and with this change, the relationship between the training function and other management activity is also changing. The training and development activities are now equally important with that of other HR functions. Gone are the days, when training was considered to be futile, waste of time, resources, and money. Now a days, training is an investment because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. If training is not considered as a priority or not seen as a vital part in the organization, then it is difficult to accept that such a company has effectively carried out HRM. Training actually provides the opportunity to raise the profile development activities in the organization.
To increase the commitment level of employees and growth in quality movement (concepts of HRM), senior management team is now increasing the role of training. Such concepts of HRM require careful planning as well as greater emphasis on employee development and long term education. Training is now the important tool of Human Resource Management to control the attrition rate because it helps in motivating employees, achieving their professional and personal goals, increasing the level of job satisfaction, etc. As a result training is given on a variety of skill development and covers a multitude of courses.
Role of HRD Professionals in Training
This is the era of cut-throat competition and with this changing scenario of business; the role of HR professionals in training has been widened. HR role now is:
1. Active involvement in employee education
2. Rewards for improvement in performance
3. Rewards to be associated with self esteem and self worth
4. Providing pre-employment market oriented skill development education and post employment support for advanced education and training
5. Flexible access i.e. anytime, anywhere training
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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Naukri
TRAINING & DEVELOPMENT
Contd..
Methods of training
There are various methods of training, which can be divided in to cognitive and behavioral methods. Trainers need to understand the pros and cons of each method, also its impact on trainees keeping their background and skills in mind before giving training.
Cognitive methods are more of giving theoretical training to the trainees. The various methods under Cognitive approach provide the rules for how to do something, written or verbal information, demonstrate relationships among concepts, etc. These methods are associated with changes in knowledge and attitude by stimulating learning.
[img]http://www.snh.org.uk/uplandpathmanagement/img/imagex17.gif[/img]
The various methods that come under Cognitive approach are:
- Lectures
- Demonstrations
- Discussions
- Computer based training
- Intelligent tutorial system
- Programmed Instruction
- Virtual reality
Behavioral methods are more of giving practical training to the trainees. The various methods under Behavioral approach allow the trainee to behavior in a real fashion. These methods are best used for skill development.
The various methods that come under Behavioral approach are:
- Games & Simulations
- Behaviour Modeling
- Business games
- Case studies
- Equipment Stimulators
- In-basket technique
- Role plays
Both the methods can be used effectively to change attitudes, but through different means.
Another Method is MANAGEMENT DEVELOPMENT METHOD –
MANAGEMENT DEVELOPMENT –
The more future oriented method and more concerned with education of the employees. To become a better performer by education implies that management development activities attempt to instill sound reasoning processes.
Management development method is further divided into two parts:
ON THE JOB TRAINING –
The development of a manager's abilities can take place on the job. The four techniques for on the job development are:
COACHING
MENTORING
JOB ROTATION
JOB INSTRUCTION TECHNIQUE (JIT)
OFF THE JOB TRAINING –
There are many management development techniques that an employee can take in off the job. The few popular methods are:
SENSITIVITY TRAINING
TRANSACTIONAL ANALYSIS
STRAIGHT LECTURES/ LECTURES
SIMULATION EXERCISES
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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(Fact Checked)-The information provided in the user's reply regarding training and development methods is accurate and aligns with best practices in HR. Well done! (1 Acknowledge point)
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- M James
TRAINING & DEVELOPMENT
Contd..
T&D AT WORKPLACE
In the current economic climate, many businesses will be carefully reviewing their HR budgets. With businesses needing to tighten their belts, one area that may be considered dispensable is training and development. This article demonstrates that while many organizations may be asking the question, "Can we afford to spend on training and development?" a more pertinent question would be, "Can we afford NOT to spend on training and development?"
As we know, the workplace is a dynamic, fluid environment. On-the-job training and development needs may change with each new order, purchase, or sale. Therefore, it is vital that your organization is both proactive and reactive to changing circumstances with in-house training and development.
Training and development in the workplace provide real-time exposure to any changes, as opposed to off-site classroom or homework training. It also allows your company to have direct oversight of the training and development methods used and immediate input into content.
In-house training offers the ability to pinpoint employee developmental needs with the satisfaction of those needs then interwoven into current processes and workflow. When a new issue or aspect of work is identified, training and development provides immediate development of the staff skills needed to master this procedure. In addition, training and development in the workplace gives instructional staff the opportunity for immediate correction of employee errors, immediate review, and additional training as identified.
Conversely, the immediacy of training and development is the ability to change training methods or facts shown to be incorrect, and to change them before adverse work occurs. Consider employee reactions. Some workers may respond positively to change, while others, often fearing the unknown, are resistant. Training and development in the workplace mean familiar territory for employees and familiar surroundings for instructors.
When training and development result in better outcomes, employees tend to display a greater sense of ownership and pride in their work. This can help lead to increased productivity and efficiency, and of course, an increase in job satisfaction. Staff who are happy in their work are more likely to work harder and be more valuable to the company, which will, in turn, put the company in a stronger position.
CRK
From India, Vijayawada
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Father of Human Resource Management in india:
Human Resource Management actually has a history dating back to the times when artisans and craftsmen would enlist the aid of one another to discuss ways to manage their laborors. However, modern HRM has its roots in the National Cash Register Company. John Patterson, the president of the company, formed a personnel department to manage the grief’s of workers after a bitter union strike in 1901
Difference between human resource management and human resource development:-
human resource management means managing and directing the people who work in organization and human resource development means to develop the people with giving the training.
Difference between Human Resource Management and Personnel Management:
Seems like nothing but a difference in name. Departments of either name within any business would be likely to handle the same tasks, and the name given to the department would be based on subjective choice. "Personnel" could be used to refer to employees only, whereas "human resources" might be considered more broadly applicable to all persons performing services for the company (meaning full-time, part-time, temps, contractors or freelancers, etc.)
From India
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Human Resource Management actually has a history dating back to the times when artisans and craftsmen would enlist the aid of one another to discuss ways to manage their laborors. However, modern HRM has its roots in the National Cash Register Company. John Patterson, the president of the company, formed a personnel department to manage the grief’s of workers after a bitter union strike in 1901
Difference between human resource management and human resource development:-
human resource management means managing and directing the people who work in organization and human resource development means to develop the people with giving the training.
Difference between Human Resource Management and Personnel Management:
Seems like nothing but a difference in name. Departments of either name within any business would be likely to handle the same tasks, and the name given to the department would be based on subjective choice. "Personnel" could be used to refer to employees only, whereas "human resources" might be considered more broadly applicable to all persons performing services for the company (meaning full-time, part-time, temps, contractors or freelancers, etc.)
From India
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Management help
TRAINING & DEVELOPMENT
Contd..
Reasons for Employee Training and Development
Training and development can be initiated for a variety of reasons for an employee or group of employees, e.g.:
- When a performance appraisal indicates performance improvement is needed
- To "benchmark" the status of improvement so far in a performance improvement effort
- As part of an overall professional development program
- As part of succession planning to help an employee be eligible for a planned change in role in the organization
- To "pilot," or test, the operation of a new performance management system
- To train about a specific topic
[img]http://rphrm.curtin.edu.au/1998/issue1/vietnam01.png[/img]
Topics of Employee Training
Communications:
The increasing diversity of today's workforce brings a wide variety of languages and customs.
Computer skills:
Computer skills are becoming a necessity for conducting administrative and office tasks.
Customer service:
Increased competition in today's global marketplace makes it critical that employees understand and meet the needs of customers.
Diversity:
Diversity training usually includes an explanation of how people have different perspectives and views, and includes techniques to value diversity.
Ethics:
Today's society has increasing expectations about corporate social responsibility. Also, today's diverse workforce brings a wide variety of values and morals to the workplace.
Human relations:
The increased stresses of today's workplace can include misunderstandings and conflict. Training can help people get along in the workplace.
Quality initiatives:
Initiatives such as Total Quality Management, Quality Circles, benchmarking, etc., require basic training about quality concepts, guidelines, and standards for quality.
Safety:
Safety training is critical when working with heavy equipment, hazardous chemicals, repetitive activities, etc., but can also be useful with practical advice for avoiding assaults, etc.
Sexual harassment:
Sexual harassment training usually includes a careful description of the organization's policies about sexual harassment, especially about what inappropriate behaviors are.
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General Benefits from Employee Training and Development
- Increased job satisfaction and morale among employees
- Increased employee motivation
- Increased efficiencies in processes, resulting in financial gain
- Increased capacity to adopt new technologies and methods
- Increased innovation in strategies and products
- Reduced employee turnover
- Enhanced company image, e.g., conducting ethics training (not a good reason for ethics training!)
- Risk management, e.g., training about sexual harassment, diversity training
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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Thank you so much, Mr. CRK. That was excellent and interesting. I have never come across such an informative topic. Please widen your knowledge so that we will benefit. Thank you once again for your hard work.
Harini
9884084838
From India, Madras
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Harini
9884084838
From India, Madras
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Thank you, Ms. Harini, for your feedback. Instead of starting different threads on different topics of the same subject, I have started posting different topics of the same subject in one thread. This approach would be quite easy for our members to go through, learn, share, and contribute. You can also find interesting tips on various aspects at https://www.citehr.com/290175-some-u...#axzz1AtCE8WQI. Thank you once again, Harini. Keep checking for more.
CRK
"Thank you so much, Mr. CRK. That was excellent and interesting as well, and I have never come across such an informative topic. Please widen your knowledge so that we will benefit. Thank you once again for your hard work.
Harini
9884084838"
From India, Vijayawada
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CRK
"Thank you so much, Mr. CRK. That was excellent and interesting as well, and I have never come across such an informative topic. Please widen your knowledge so that we will benefit. Thank you once again for your hard work.
Harini
9884084838"
From India, Vijayawada
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(Fact Checked)-[The response accurately reflects the original post and provides an encouraging acknowledgment.] (1 Acknowledge point)
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TRAINING & DEVELOPMENT
Contd..
EVALUATION OF TRAINING
The process of examining a training program is called training evaluation. Training evaluation checks whether training has had the desired effect. Training evaluation ensures that whether candidates are able to implement their learning in their respective workplaces, or to the regular work routines.
Purposes of Training Evaluation
The five main purposes of training evaluation are:
Feedback: It helps in giving feedback to the candidates by defining the objectives and linking it to learning outcomes.
Research: It helps in ascertaining the relationship between acquired knowledge, transfer of knowledge at the work place, and training
<image no longer exists>
Control: It helps in controlling the training program because if the training is not effective, then it can be dealt with accordingly.
Power games: At times, the top management (higher authoritative employee) uses the evaluative data to manipulate it for their own benefits.
Intervention: It helps in determining that whether the actual outcomes are aligned with the expected outcomes.
Process of Training Evaluation
Before Training: The learner's skills and knowledge are assessed before the training program. During the start of training, candidates generally perceive it as a waste of resources because at most of the times candidates are unaware of the objectives and learning outcomes of the program. Once aware, they are asked to give their opinions on the methods used and whether those methods confirm to the candidates preferences and learning style.
<image no longer exists>
During Training: It is the phase at which instruction is started. This phase usually consist of short tests at regular intervals
After Training: It is the phase when learner’s skills and knowledge are assessed again to measure the effectiveness of the training. This phase is designed to determine whether training has had the desired effect at individual department and organizational levels. There are various evaluation techniques for this phase.
Techniques of Evaluation
The various methods of training evaluation are:
- Observation
- Questionnaire
- Interview
- Self diaries
- Self recording of specific incidents
Benefits of Training Evaluation
There are a number of reasons why organizations proactively monitor the effectiveness of employee education. These are:
- Helps employees to monitor their own improvement.
- Builds morale, by demonstrating an interest in staff development.
- To maximize the training ROI (return on investment).
- Helps to determine the form of future training programs.
- Assists with identifying the effectiveness of different forms of teaching (such as classroom based or web based).
Organizations that train but do not evaluate that training cannot be certain of its value, either to themselves or their employees.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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Contd..
EVALUATION OF TRAINING
The process of examining a training program is called training evaluation. Training evaluation checks whether training has had the desired effect. Training evaluation ensures that whether candidates are able to implement their learning in their respective workplaces, or to the regular work routines.
Purposes of Training Evaluation
The five main purposes of training evaluation are:
Feedback: It helps in giving feedback to the candidates by defining the objectives and linking it to learning outcomes.
Research: It helps in ascertaining the relationship between acquired knowledge, transfer of knowledge at the work place, and training
<image no longer exists>
Control: It helps in controlling the training program because if the training is not effective, then it can be dealt with accordingly.
Power games: At times, the top management (higher authoritative employee) uses the evaluative data to manipulate it for their own benefits.
Intervention: It helps in determining that whether the actual outcomes are aligned with the expected outcomes.
Process of Training Evaluation
Before Training: The learner's skills and knowledge are assessed before the training program. During the start of training, candidates generally perceive it as a waste of resources because at most of the times candidates are unaware of the objectives and learning outcomes of the program. Once aware, they are asked to give their opinions on the methods used and whether those methods confirm to the candidates preferences and learning style.
<image no longer exists>
During Training: It is the phase at which instruction is started. This phase usually consist of short tests at regular intervals
After Training: It is the phase when learner’s skills and knowledge are assessed again to measure the effectiveness of the training. This phase is designed to determine whether training has had the desired effect at individual department and organizational levels. There are various evaluation techniques for this phase.
Techniques of Evaluation
The various methods of training evaluation are:
- Observation
- Questionnaire
- Interview
- Self diaries
- Self recording of specific incidents
Benefits of Training Evaluation
There are a number of reasons why organizations proactively monitor the effectiveness of employee education. These are:
- Helps employees to monitor their own improvement.
- Builds morale, by demonstrating an interest in staff development.
- To maximize the training ROI (return on investment).
- Helps to determine the form of future training programs.
- Assists with identifying the effectiveness of different forms of teaching (such as classroom based or web based).
Organizations that train but do not evaluate that training cannot be certain of its value, either to themselves or their employees.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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TRAINING & DEVELOPMENT Some collected files on Training have been attached, which might be useful... CRK
From India, Vijayawada
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From India, Vijayawada
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Dear CRK, i really like what you borught and wrote down here. I’m working as HR manager and really it is nice to read that and we are looking for more. Regards, yaqoob Oman
From Oman, Muscat
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From Oman, Muscat
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Dear Yaqoob,
Thank you! :) Keep visiting this thread frequently for more useful posts. You can also find useful tips at: https://www.citehr.com/290175-some-u...#axzz1AuP3Ik7A. Once again, thank you for your feedback.
CRK
From India, Vijayawada
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Thank you! :) Keep visiting this thread frequently for more useful posts. You can also find useful tips at: https://www.citehr.com/290175-some-u...#axzz1AuP3Ik7A. Once again, thank you for your feedback.
CRK
From India, Vijayawada
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PERFORMANCE APPRAISAL
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.
Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement.
Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.
The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align the individual performances with the organizational goals and also review their performance.
Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.
[img]http://www.thisisfreelance.com/wp-content/uploads/Performance_appraisal_process.jpg[/img]
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.
Objectives Of Performance appraisal:
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior – subordinates and management – employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
[img]http://t0.gstatic.com/images?q=tbn:ANd9GcSlmgXx-mvoNSifDYONerC7MxuHTeJf7Ptdp1KWoUKcZGoc_4PzgQ[/img]
To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.
To reduce the grievances of the employees.
PERFORMANCE APPRAISAL PROCESS
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.
COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.
The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
<image no longer exists>
MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.
Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement.
Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.
The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align the individual performances with the organizational goals and also review their performance.
Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.
[img]http://www.thisisfreelance.com/wp-content/uploads/Performance_appraisal_process.jpg[/img]
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.
Objectives Of Performance appraisal:
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior – subordinates and management – employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
[img]http://t0.gstatic.com/images?q=tbn:ANd9GcSlmgXx-mvoNSifDYONerC7MxuHTeJf7Ptdp1KWoUKcZGoc_4PzgQ[/img]
To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.
To reduce the grievances of the employees.
PERFORMANCE APPRAISAL PROCESS
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.
COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.
The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
<image no longer exists>
MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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(Fact Checked)-The information provided in the user reply is accurate and comprehensive, covering various aspects of performance appraisal. Great job! (1 Acknowledge point)
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Hi CRK,
Details about different HR topics have been presented in a clear, understandable, and comprehensive manner. First of all, thanks for the contributions. I appreciate the effort you have taken to avoid the repetition of information.
I would like to request if you could shed some light on recruitment metrics and the methods by which you can measure the effectiveness of a recruitment process.
Once again, great work! Kudos!
From India, Bangalore
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Details about different HR topics have been presented in a clear, understandable, and comprehensive manner. First of all, thanks for the contributions. I appreciate the effort you have taken to avoid the repetition of information.
I would like to request if you could shed some light on recruitment metrics and the methods by which you can measure the effectiveness of a recruitment process.
Once again, great work! Kudos!
From India, Bangalore
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(Fact Checked)-[response] The user's reply is accurate and provides positive feedback on the HR topics presented. Great encouragement for further engagement. (1 Acknowledge point)
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Hey CRK i Want to knw about performance appriasal process in deep.which method is useful in software companies.
From India, Ambala
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From India, Ambala
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(Fact Checked)-[response] The user reply is somewhat relevant to the original post but lacks depth. Performance appraisal methods in software companies typically include 360-degree feedback, management by objectives, and peer evaluation. (1 Acknowledge point)
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Thank you for your feedback and response, Jayesh. 😊
Well, I will try to make my posts cover maximum information on all aspects of the subject as per your request. Thank you once again. 😊
CRK
From India, Vijayawada
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Well, I will try to make my posts cover maximum information on all aspects of the subject as per your request. Thank you once again. 😊
CRK
From India, Vijayawada
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(Fact Checked)-[response] (1 Acknowledge point)
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PERFORMANCE APPRAISAL
Contd..
TRADITIONAL METHODS
1. ESSAY APPRAISAL METHOD
This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS
In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.
5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.
[img]http://t1.gstatic.com/images?q=tbn:ANd9GcQSN9dFe7MqD5FrnRU-UPPscwQGUL392NLRe8kPaYC2adbvuBFTfg[/img]
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
7. GRAPHIC RATING SCALE
In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.
MODERN METHODS
ASSESSMENT CENTRES -
An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.
The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.
[img]http://t1.gstatic.com/images?q=tbn:ANd9GcQS-9hT0o3mm7aKjzIvB3-Hr6bziPIKcX3qyrfPD8DnqQ8utBYF[/img]
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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Contd..
TRADITIONAL METHODS
1. ESSAY APPRAISAL METHOD
This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS
In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.
5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.
[img]http://t1.gstatic.com/images?q=tbn:ANd9GcQSN9dFe7MqD5FrnRU-UPPscwQGUL392NLRe8kPaYC2adbvuBFTfg[/img]
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
7. GRAPHIC RATING SCALE
In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.
MODERN METHODS
ASSESSMENT CENTRES -
An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.
The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.
[img]http://t1.gstatic.com/images?q=tbn:ANd9GcQS-9hT0o3mm7aKjzIvB3-Hr6bziPIKcX3qyrfPD8DnqQ8utBYF[/img]
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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(Fact Checked)-[The user's reply provides accurate information on traditional and modern methods of performance appraisal. No corrections needed. Well done!] (1 Acknowledge point)
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PERFORMANCE APPRAISAL
Contd...
360 DEGREE PERFORMANCE APPRAISAL
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.
[img]http://t0.gstatic.com/images?q=tbn:ANd9GcTsubxrbOI5Are7Ub2fQux6HYVG64jpx ACtr561tLgz79A-20LnvQ[/img]
360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms.
Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. Individual responses are always combined with responses from other people in the same rater category (e.g. peer, direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses.
360 Feedback can also be a useful development tool for people who are not in a management role. Strictly speaking, a "non-manager" 360 assessment is not measuring feedback from 360 degrees since there are no direct reports, but the same principles still apply. 360 Feedback for non-managers is useful to help people be more effective in their current roles, and also to help them understand what areas they should focus on if they want to move into a management role.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.
<image no longer exists>
Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.
360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.
Companies typically use a 360 feedback system in one of two ways:
1. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective
When done properly, 360 is highly effective as a development tool. The feedback process gives people an opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs.
2. 360 Feedback as a Performance Appraisal Tool to measure employee performance
Using a 360 degree feedback system for Performance Appraisal is a common practice, but not always a good idea. It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360 feedback focuses on behaviors and competencies more than on basic skills, job requirements, and performance objectives. These things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 feedback into a larger performance management process, but only with clear communication on how the 360 feedback will be used.
360 Feedback Survey Measures..
- The behaviors and competencies
- 360 assessments provide feedback on how others perceive an employee
- 360 feedback addresses skills such as listening, planning, and goal-setting
- A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness
CRK
From India, Vijayawada
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Contd...
360 DEGREE PERFORMANCE APPRAISAL
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.
[img]http://t0.gstatic.com/images?q=tbn:ANd9GcTsubxrbOI5Are7Ub2fQux6HYVG64jpx ACtr561tLgz79A-20LnvQ[/img]
360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms.
Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. Individual responses are always combined with responses from other people in the same rater category (e.g. peer, direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses.
360 Feedback can also be a useful development tool for people who are not in a management role. Strictly speaking, a "non-manager" 360 assessment is not measuring feedback from 360 degrees since there are no direct reports, but the same principles still apply. 360 Feedback for non-managers is useful to help people be more effective in their current roles, and also to help them understand what areas they should focus on if they want to move into a management role.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.
<image no longer exists>
Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.
360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.
Companies typically use a 360 feedback system in one of two ways:
1. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective
When done properly, 360 is highly effective as a development tool. The feedback process gives people an opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs.
2. 360 Feedback as a Performance Appraisal Tool to measure employee performance
Using a 360 degree feedback system for Performance Appraisal is a common practice, but not always a good idea. It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360 feedback focuses on behaviors and competencies more than on basic skills, job requirements, and performance objectives. These things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 feedback into a larger performance management process, but only with clear communication on how the 360 feedback will be used.
360 Feedback Survey Measures..
- The behaviors and competencies
- 360 assessments provide feedback on how others perceive an employee
- 360 feedback addresses skills such as listening, planning, and goal-setting
- A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness
CRK
From India, Vijayawada
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(Fact Checked)-The user reply provides an accurate and detailed explanation of 360-degree performance appraisal, outlining its components and benefits. Great job! (1 Acknowledge point)
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Dear Sir, Thanks a lot for your valuable & great contribution. Also i would like to know generally which method of performance appraisal is used the most in companies.
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-[response] The most commonly used methods of performance appraisal in companies include Management by Objectives (MBO), 360-Degree Feedback, and Critical Incident Method. (1 Acknowledge point)
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Dear Kavita, The concept of Performance appraisal will be posted in depth in following posts, where you may get your required information.... Keep in touch with this thread... Thankyou.... CRK
From India, Vijayawada
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From India, Vijayawada
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PERFORMANCE APPRAISAL
Contd...
COMPETENCY MODELS FOR 360 FEEDBACK SURVEYS
[COLOR="DarkOrchid"]
The first thing to decide is whether you want to work from an existing competency model or develop your own. Resist the temptation to reinvent the wheel. Many companies spend a great deal of time and effort creating a "unique" competency model for their 360-degree feedback program, which ends up looking quite similar to our existing competency model.
If you will use 360 feedback surveys on a limited basis in your organization, consider using an existing competency model, perhaps with some minor adjustments to the evaluation form as needed.
For a company-wide 360-degree feedback program, you may want to spend some time developing a more unique competency model that incorporates your organization's leadership model, core values, as well as the behaviors and performance standards that are expected of all employees.
[IMG]http://t0.gstatic.com/images?q=tbn:ANd9GcS_8JUW61zUiuag_z_cZmh48KfAR8XzK YMPA9J0k__jv3qFR60j[/IMG]
Establishing the Core of your 360 Competency Model
Some aspects of your competency model will be the same for all employees, regardless of function or level within the organization. Call this your "core". The core of your 360 survey will include the following:
Items related to company values, mission, and vision
Competencies and expectations that apply to all employees, from the CEO down to the individual contributor.
Many competencies or behavioral categories will apply to employees at all levels, but the specific behaviors in each area will often differ. For example, "Interpersonal Skills" are important for everybody, but the expectations and requirements related to "Interpersonal Skills" will be quite different at different levels in the organization.
Other competencies will only be relevant at certain levels. For example, "Building Talent" is an important area for mid-level management and above but not at all relevant to non-managers.
Beyond the Core
It is less important to distinguish between functional areas, especially for mid-level management and above. Focus on identifying 3 or 4 distinct vertical levels within your organization. For example:
1. Senior Leaders
2. Mid-upper Managers
3. Lower-level / First-line Managers
4. Individual Contributors (Non-managers)
For each of the 3-4 levels, the competency model will start with the "core" but also include the specific behaviors needed to succeed at each level.
Remember - don't reinvent the wheel. As you develop your competency models, reference our standard competency model as it will help you fill in the gaps as you create your own. The top-level categories will be based on statistical analyses and field experience. They are:
- Knowledge/Strategic
- Character
- Interpersonal
- Innovation/Change
- Building Talent
- Leadership/Motivation
- Execution
Different Competencies for People at Different Levels
If you are developing a 360 survey that will be used by people at different levels within your organization, the mix of categories and items will vary quite a lot across the various levels. It might help to think about the different levels in terms of the requirements for success in the following three areas:
Vision, Strategy, Inspiration
- Upper levels should include a lot of detail in this area.
- Middle levels should include some items in this area but not too many. This is an opportunity to help people see what they will need to succeed at the next level, and also an opportunity for you to identify high potentials for promotions. Some degree of inspiring and motivating is relevant for anybody in a management role.
- Lower levels, especially individual contributors, should not include items in this area.
<image no longer exists>
Teambuilding and Relationship Building
Upper levels should include a lot in this area, but some of the things that are included for mid-level might be excluded here. You do not have to be as thorough regarding basic skills. Instead, focus more on support and relationship building at a higher conceptual level and creating strategic alliances with other parts of the organization.
Middle levels should include a lot of detail in this area with regard to people skills, team management, and fostering team effectiveness.
Lower levels should include a reasonable amount here, but look for areas that don't include things that are only relevant for higher levels. Include things related to working with others, cooperating, listening, and supporting team efforts.
Task Management and Execution
Upper levels should include items that are more focused on achieving results - they would not have reached the upper level if they had not been successful at the basic skills when they were at a lower level.
Middle levels should include quite a lot here, but some of the most basic items could be excluded.
Lower levels should include a lot in this area, focusing on the basic, fundamental skills of task management and job performance.
When you are finished, you will have 3-4 competency models along with a list of survey categories and items for each one. By following these steps, you will have a vertically integrated approach that uses a common core across all levels but also maps out a progression from the bottom of the organization to the top.
Here is an example of how a specific category might apply across all levels of the organization but vary in its nature depending on the level:
Teamwork
Upper Levels
Encourages cooperation and collaboration between business units
Establishes partnerships at all levels to achieve results
Middle Levels
Resolves conflicts among team members
Sets clear, achievable goals for all team members to follow
Lower Levels
Works effectively to achieve team goals
Cooperates effectively with team members
CRK
From India, Vijayawada
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(Fact Checked)-[response] The user reply provides accurate and detailed information on competency models for 360 feedback surveys, including the importance of developing unique models and core competencies. No corrections needed. (1 Acknowledge point)
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PERFORMANCE APPRAISAL
Contd...
ARGUMENTS AGAINST 360 DEGREE APPRAISAL SYSTEM
Despite the fact that 360 degree appraisals are being widely used throughout the world for appraising the performance of the employees at all levels, many HR experts and professionals argument against using the technique of 360 degree appraisals. The main arguments are:
360 performance rating system is not a validated or corroborated technique for Performance appraisal.
With the increase in the number of raters from one to five (commonly), it become difficult to separate, calculate and eliminate personal biasness and differences.
[img]http://www.topnews.in/files/argument.jpg[/img]
It is often time consuming and difficult to analyze the information gathered.
The results can be manipulated by the employees towards their desired ratings with the help of the raters.
The 360 degree appraisal mechanism can have a adversely effect the motivation and the performance of the employees.
360 degree feedback – as a process requires commitment of top management and the HR, resources(time, financial resources etc), planned implementation and follow up.
360 degree feedback can be adversely affected by the customers perception of the organisation and their incomplete knowledge about the process and the clarity of the process.
Often, the process suffers because of the lack of knowledge on the part of the participants or the raters.
CRK
From India, Vijayawada
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ARGUMENTS AGAINST 360 DEGREE APPRAISAL SYSTEM
Despite the fact that 360 degree appraisals are being widely used throughout the world for appraising the performance of the employees at all levels, many HR experts and professionals argument against using the technique of 360 degree appraisals. The main arguments are:
360 performance rating system is not a validated or corroborated technique for Performance appraisal.
With the increase in the number of raters from one to five (commonly), it become difficult to separate, calculate and eliminate personal biasness and differences.
[img]http://www.topnews.in/files/argument.jpg[/img]
It is often time consuming and difficult to analyze the information gathered.
The results can be manipulated by the employees towards their desired ratings with the help of the raters.
The 360 degree appraisal mechanism can have a adversely effect the motivation and the performance of the employees.
360 degree feedback – as a process requires commitment of top management and the HR, resources(time, financial resources etc), planned implementation and follow up.
360 degree feedback can be adversely affected by the customers perception of the organisation and their incomplete knowledge about the process and the clarity of the process.
Often, the process suffers because of the lack of knowledge on the part of the participants or the raters.
CRK
From India, Vijayawada
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PERFORMANCE APPRAISAL Contd... Find some collected important sheets attached, which might be useful... CRK
From India, Vijayawada
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From India, Vijayawada
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My name is Bhavika. I am an MHRD graduate. I am searching for an HR job in Surat. If anyone knows of any job vacancies in HR in Surat, please let me know. I have 3.5 years of experience in HR. Please help me.
Bhavika
9898321096
bhavu31085@yahoo.co.in
From India, Surat
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Bhavika
9898321096
bhavu31085@yahoo.co.in
From India, Surat
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Excellent.
I am Prof. Navale, just started taking Lectures in I.R & Lab. welfare. Can anyone help me out to get the PPTs as a teaching tool for improvement? Please do me the favor. Thanks for posting such a detailed write-up. In the near future, I will also try to post some articles related to my subject.
From India, Mumbai
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I am Prof. Navale, just started taking Lectures in I.R & Lab. welfare. Can anyone help me out to get the PPTs as a teaching tool for improvement? Please do me the favor. Thanks for posting such a detailed write-up. In the near future, I will also try to post some articles related to my subject.
From India, Mumbai
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Dear Bhavika,
Please don't make your posts in irrelevant threads. Your request/post/expectations for positive responses may go to waste as your post can't reach the relevant groups. There are many threads and sections for job seekers on citehr. Do post your requirements there to increase your chances of a response. Hope you understand and take it positively. All the very best for your job hunt.
CRK
From India, Vijayawada
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Please don't make your posts in irrelevant threads. Your request/post/expectations for positive responses may go to waste as your post can't reach the relevant groups. There are many threads and sections for job seekers on citehr. Do post your requirements there to increase your chances of a response. Hope you understand and take it positively. All the very best for your job hunt.
CRK
From India, Vijayawada
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Hi CRK,
How are you? Thank you for your valuable contribution. I want to know if the formats you have attached are sufficient to measure the performance of employees, or do we need to have employees fill out more forms?
Thank you.
From India, Ambala
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How are you? Thank you for your valuable contribution. I want to know if the formats you have attached are sufficient to measure the performance of employees, or do we need to have employees fill out more forms?
Thank you.
From India, Ambala
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Hi Kavita......... :)
Very fine..... thank you...... :) Hope the same....
The form depends on the kind of appraisal in your company, your main purpose of the appraisal, and the things you wish to add to extract more information on various aspects of the performance of your employees.......
CRK
From India, Vijayawada
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Very fine..... thank you...... :) Hope the same....
The form depends on the kind of appraisal in your company, your main purpose of the appraisal, and the things you wish to add to extract more information on various aspects of the performance of your employees.......
CRK
From India, Vijayawada
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Contd..
BALANCED SCORECARD
To evaluate the organizational and employee performance in performance appraisal management processes, the conventional approach measures the performance only on a few parameters like the action processes, results achieved, or the financial measures, etc. The Balanced Scorecard – an approach given by Kaplan and Norton – provides a framework of various measures to ensure the complete and balanced view of the performance of the employees. The Balanced Scorecard focuses on the measures that drive performance.
[img]http://www.balancedscorecard.org/Portals/0/images/balancedscorecard.jpg[/img]
The Balanced Scorecard provides a list of measures that balance the organization's internal and process measures with results, achievements, and financial measures.
The two basic features of the Balanced Scorecard are:
- A balanced set of measures based on the four perspectives of the Balanced Scorecard
- Linking the measures to Employee Performance
The four perspectives recommended by Kaplan and Norton for the managers to collect information are:
The financial measures – The financial measures include the results like profits, increase in the market share, return on investments, and other economic measures as a result of the actions taken.
The customers’ measures - These measures help to focus on customer satisfaction, the customer's perspective about the organization, customer loyalty, acquiring new customers. The data can be collected from the frequency and number of customer complaints, the time taken to deliver the products and services, improvement in quality, etc.
The internal business measures – These are the measures related to the organization's internal processes which help to achieve customer satisfaction. It includes the infrastructure, the long-term and short-term goals and objectives, organizational processes and procedures, systems, and the human resources.
The innovation and learning perspective - The innovation and learning measures cover the organization's ability to learn, innovate, and improve. They can be judged by employee skills matrix, key competencies, value added, and the revenue per employee.
CRK
crk.mbahr@yahoo.com
From India, Vijayawada
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PERFORMANCE APPRAISAL
Contd..
BALANCED SCORECARD APPROACH TO MEASURE PERFORMANCE
The balanced scorecard focuses on the measures that drive the employee performance. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures. The two basic features of the balanced scorecard are:
- A balanced set of measures based on. the four perspectives of balanced scorecard
- Linking the measures to Employee Performance
- A balanced set of measures
Instead of relying on just one instrument or measure, using a balanced set of measures ensures that all the aspects of the employees’ performance are covered and provide relevant support for the decisions taken.
Therefore, it is necessary that the manager should be capable of observe and note the several instruments and measures simultaneously. The four perspectives given by Kaplan and Norton are the financial measures, the customer’s perspective, the internal business perspectives and the innovation and learning perspectives.
For each perspective of the following things are measured:
Objectives: the goals and the targets to be achieved
Measures: the standards which will be used to measure the actual performance and the progress.
Action plans: the initiatives taken and the course of action to be followed to achieve the objectives
Tie-In to Employee Performance
The balanced scorecard approach can be used and applied at both the individual and the organisational level. It provides a balanced approach to evaluate the employees’ performance (for the purpose of Performance appraisal) in a comprehensive manner rather than a partial view. In most of the organisations, the common practice of measuring the employee performance refers to only the comparison of their action plans and behaviours with the standards set i.e. without actually measuring the results of their actions like profits and increase in market share. This conventional practice can lead to the appraisal of most of the employees without any or little progress towards achieving the goals and objectives of the organisation. Thus, the balanced scorecard gives the complete view of the employees and the organisational performance and helps to align the employee performance/action plans with the organisational goals.
BENEFITS OF BALANCED SCORECARD
The benefits of the balanced scorecard approach in measuring performance are:
- Gives the complete picture of the employee as well as the organisational performance.
- It guides users in determining the critical success factors and performance indicators.
- Strategic review or analysis of the organisational capabilities and performance.
- Focusing the whole organisation on the few key things needed to create breakthrough performance.
- Integrating and directing the performance and efforts from the lowest levels in the organisation to achieve excellent overall performance.
CRK
From India, Vijayawada
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Contd..
BALANCED SCORECARD APPROACH TO MEASURE PERFORMANCE
The balanced scorecard focuses on the measures that drive the employee performance. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures. The two basic features of the balanced scorecard are:
- A balanced set of measures based on. the four perspectives of balanced scorecard
- Linking the measures to Employee Performance
- A balanced set of measures
Instead of relying on just one instrument or measure, using a balanced set of measures ensures that all the aspects of the employees’ performance are covered and provide relevant support for the decisions taken.
Therefore, it is necessary that the manager should be capable of observe and note the several instruments and measures simultaneously. The four perspectives given by Kaplan and Norton are the financial measures, the customer’s perspective, the internal business perspectives and the innovation and learning perspectives.
For each perspective of the following things are measured:
Objectives: the goals and the targets to be achieved
Measures: the standards which will be used to measure the actual performance and the progress.
Action plans: the initiatives taken and the course of action to be followed to achieve the objectives
Tie-In to Employee Performance
The balanced scorecard approach can be used and applied at both the individual and the organisational level. It provides a balanced approach to evaluate the employees’ performance (for the purpose of Performance appraisal) in a comprehensive manner rather than a partial view. In most of the organisations, the common practice of measuring the employee performance refers to only the comparison of their action plans and behaviours with the standards set i.e. without actually measuring the results of their actions like profits and increase in market share. This conventional practice can lead to the appraisal of most of the employees without any or little progress towards achieving the goals and objectives of the organisation. Thus, the balanced scorecard gives the complete view of the employees and the organisational performance and helps to align the employee performance/action plans with the organisational goals.
BENEFITS OF BALANCED SCORECARD
The benefits of the balanced scorecard approach in measuring performance are:
- Gives the complete picture of the employee as well as the organisational performance.
- It guides users in determining the critical success factors and performance indicators.
- Strategic review or analysis of the organisational capabilities and performance.
- Focusing the whole organisation on the few key things needed to create breakthrough performance.
- Integrating and directing the performance and efforts from the lowest levels in the organisation to achieve excellent overall performance.
CRK
From India, Vijayawada
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MOTIVATION
One of the most important factors that lead one to their goals is the drive. This drive is known as motivation. It is a zest and determination with a kind of excitement that leads one to persevere to reach greater heights, in no matter what avenue of their life; be it – personal or professional. The drive may come from an internal or external source. The individual determines this.
The factors that motivate an individual keep changing as one climbs the ladder of age and maturity. And also, achievement of one goal sets the ball rolling for another one to be achieved. Thus, to be motivated is a constant need. There are times when one faces a period of de-motivation and everything seems bleak. It is then that they need to find what would motivate them back into action.
[img]http://t2.gstatic.com/images?q=tbn:ANd9GcTMRVrV3-WXkuzmDLp7YWNlAyChUUKwFwuA3zz86AaAt2Wuz27VnA[/img]
For every individual there is a variable driving force. In fact, it is not just a single factor, but a combination of factors that lead people to achieve their goals. The fact is that with routine monotony steps in and then everything seems like stagnant waters. It feels like there is nothing new.
Breaking this cycle of monotony has helped many bounce back with enthusiasm. This is why human resource managers create a training calendar, which will take away employees from the routine they are stuck to, as well as enhance their skills in various areas.
Others pursue hobbies during the weekend, thus giving them something to look forward to, as each week comes to a close. There are people who redefine their goals and ambitions from time to time in order to fill them with newer levels of enthusiasm to achieve greater feats. One needs to take stalk every now and then and find the motivator required to carry them through.
CRK
From India, Vijayawada
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One of the most important factors that lead one to their goals is the drive. This drive is known as motivation. It is a zest and determination with a kind of excitement that leads one to persevere to reach greater heights, in no matter what avenue of their life; be it – personal or professional. The drive may come from an internal or external source. The individual determines this.
The factors that motivate an individual keep changing as one climbs the ladder of age and maturity. And also, achievement of one goal sets the ball rolling for another one to be achieved. Thus, to be motivated is a constant need. There are times when one faces a period of de-motivation and everything seems bleak. It is then that they need to find what would motivate them back into action.
[img]http://t2.gstatic.com/images?q=tbn:ANd9GcTMRVrV3-WXkuzmDLp7YWNlAyChUUKwFwuA3zz86AaAt2Wuz27VnA[/img]
For every individual there is a variable driving force. In fact, it is not just a single factor, but a combination of factors that lead people to achieve their goals. The fact is that with routine monotony steps in and then everything seems like stagnant waters. It feels like there is nothing new.
Breaking this cycle of monotony has helped many bounce back with enthusiasm. This is why human resource managers create a training calendar, which will take away employees from the routine they are stuck to, as well as enhance their skills in various areas.
Others pursue hobbies during the weekend, thus giving them something to look forward to, as each week comes to a close. There are people who redefine their goals and ambitions from time to time in order to fill them with newer levels of enthusiasm to achieve greater feats. One needs to take stalk every now and then and find the motivator required to carry them through.
...to be contd...
CRK
From India, Vijayawada
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Hi CRK,
I often go through your posts, especially those in the recent section titled "CRK's Desk." Thank you for consolidating all HR topics and presenting them in one thread - it's like having everything "ALL UNDER ONE ROOF." I appreciate your initiative in organizing and presenting the entire HR information.
Starting a new activity can require a significant amount of energy and initiative, but once you've begun, it requires much less effort to maintain momentum. Keep up the good work!
Keep going!
From India, Madras
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I often go through your posts, especially those in the recent section titled "CRK's Desk." Thank you for consolidating all HR topics and presenting them in one thread - it's like having everything "ALL UNDER ONE ROOF." I appreciate your initiative in organizing and presenting the entire HR information.
Starting a new activity can require a significant amount of energy and initiative, but once you've begun, it requires much less effort to maintain momentum. Keep up the good work!
Keep going!
From India, Madras
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Thankyou GarimaSolanki............:) With pleasure......... this thread continues...... a long journey...... Thankyou for your appreciations...... Keep checking...... CRK
From India, Vijayawada
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Contd...
Maslow's Theory of Motivation - Hierarchy of Needs
In 1943, Dr. Abraham Maslow's article "A Theory of Human Motivation" appeared in Psychological Review, which was further expanded upon in his book: Toward a Psychology of Being. In this article, Abraham H. Maslow attempted to formulate a needs-based framework of human motivation based upon his clinical experiences with people, rather than as did the prior psychology theories of his day from authors such as Freud and B.F. Skinner, which were largely theoretical or based upon animal behavior. From this theory of motivation, modern leaders and executive managers find means of motivation for the purposes of employee and workforce management. Abraham Maslow's book Motivation and Personality (1954) formally introduced the Hierarchy of Needs.
The basis of Maslow's motivation theory is that human beings are motivated by unsatisfied needs, and that certain lower factors need to be satisfied before higher needs can be satisfied. According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a person can act unselfishly. He called these needs "deficiency needs." As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick or act evilly.
As a result, for adequate workplace motivation, it is important that leadership understands the active needs active for individual employee motivation. In this manner, Maslow's model indicates that fundamental, lower-order needs like safety and physiological requirements have to be satisfied in order to pursue higher-level motivators along the lines of self-fulfillment. As depicted in the following hierarchical diagram, sometimes called 'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle', after a need is satisfied it stops acting as a motivator and the next need one rank higher starts to motivate.
Self-Actualization
Self-actualization is the summit of Maslow's motivation theory. It is about the quest of reaching one's full potential as a person. Unlike lower-level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow.
Self-actualized people tend to have motivators such as:
- Truth
- Justice
- Wisdom
- Meaning
Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.
Esteem Needs
After a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem needs can be categorized as external motivators and internal motivators.
Internally motivating esteem needs are those such as self-esteem, accomplishment, and self-respect. External esteem needs are those such as reputation and recognition.
Some examples of esteem needs are:
- Recognition (external motivator)
- Attention (external motivator)
- Social Status (external motivator)
- Accomplishment (internal motivator)
- Self-respect (internal motivator)
Maslow later improved his model to add a layer in between self-actualization and esteem needs: the need for aesthetics and knowledge.
Social Needs
Once a person has met the lower-level physiological and safety needs, higher-level motivators awaken. The first level of higher-level needs are social needs. Social needs are those related to interaction with others and may include:
- Friendship
- Belonging to a group
- Giving and receiving love
Safety Needs
Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by:
- Living in a safe area
- Medical insurance
- Job security
- Financial reserves
According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.
Physiological Needs
Physiological needs are those required to sustain life, such as:
- Air
- Water
- Food
- Sleep
According to this theory, if these fundamental needs are not satisfied then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.
Applying Maslow's Needs Hierarchy - Business Management Implications
If Maslow's theory is true, there are some very important leadership implications to enhance workplace motivation. There are staff motivation opportunities by motivating each employee through their style of management, compensation plans, role definition, and company activities.
Physiological Motivation:
Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life's essentials.
Safety Needs:
Provide a working environment that is safe, relative job security, and freedom from threats.
Social Needs:
Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics.
Esteem Motivators:
Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated.
Self-Actualization:
Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.
Remember, everyone is not motivated by the same needs. At various points in their lives and careers, various employees will be motivated by completely different needs. It is imperative that you recognize each employee's needs currently being pursued. In order to motivate their employees, leadership must understand the current level of needs at which the employee finds themselves and leverage needs for workplace motivation.
Maslow's Theory - Limitations and Criticism
Though Maslow's hierarchy makes sense intuitively, little evidence supports its strict hierarchy. Actually, recent research challenges the order that the needs are imposed by Maslow's pyramid. As an example, in some cultures, social needs are placed more fundamentally than any others. Further, Maslow's hierarchy fails to explain the "starving artist" scenario, in which the aesthetic neglects their physical needs to the pursuit of aesthetic or spiritual goals. Additionally, little evidence suggests that people satisfy exclusively one motivating need at a time, other than situations where needs conflict.
While scientific support fails to reinforce Maslow's hierarchy, his theory is very popular, being the introductory motivation theory for many students and managers worldwide. To handle a number of the issues present in the Needs Hierarchy, Clayton Alderfer devised the ERG theory, a consistent needs-based model that aligns more accurately with scientific research.
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MOTIVATION
Theory X and Theory Y by Douglas McGregor
Douglas McGregor, in his book, "The Human Side of Enterprise" published in 1960, has examined theories on the behavior of individuals at work. He formulated two models which he calls Theory X and Theory Y.
Theory X Assumptions
The average human being has an inherent dislike of work and will avoid it if possible.
Because of their dislike for work, most people must be controlled and threatened before they will work hard enough.
The average human prefers to be directed, dislikes responsibility, is unambitious, and desires security above everything.
These assumptions underlie most organizational principles today, giving rise to both "tough" management with punishments and tight controls and "soft" management that aims at harmony at work.
Both of these approaches are flawed because man needs more than financial rewards at work; he also needs some deeper, higher-order motivation – the opportunity to fulfill himself.
Theory X managers do not provide this opportunity to their staff, resulting in employees behaving as expected.
Theory Y Assumptions
The expenditure of physical and mental effort in work is as natural as play or rest.
Control and punishment are not the only ways to motivate people; individuals will direct themselves if they are committed to the organization's goals.
If a job is satisfying, it will lead to commitment to the organization.
The average person, under appropriate conditions, not only accepts but seeks responsibility.
Imagination, creativity, and ingenuity can be utilized to solve work problems by a large number of employees.
In modern industrial conditions, the intellectual potential of the average person is only partially utilized.
Comments on Theory X and Theory Y Assumptions
These assumptions are based on social science research, demonstrating the untapped potential in individuals that organizations should acknowledge to enhance effectiveness.
McGregor views Theory X and Theory Y as two distinct attitudes. While Theory Y may be challenging to implement on the shop floor in large production operations, it can be initially applied in managing managers and professionals.
In "The Human Side of Enterprise," McGregor illustrates how Theory Y impacts promotions, salaries, effective manager development, and participative problem-solving.
Managers must exercise authority as part of their role, but where possible, obtaining commitment to objectives through clear explanations results in employees exerting self-direction and control, leading to improved work quality.
When employees can be consulted, especially those emotionally mature and motivated towards their work, a participative problem-solving approach yields better results compared to authoritarian orders.
Once management recognizes the underestimation of human resources potential and embraces the Theory Y assumptions, they can invest resources in developing improved applications of the theory.
McGregor acknowledges that some of his theories may be impractical but urges managers to treat staff as responsible and valued employees to enhance organizational contributions.
CRK
From India, Vijayawada
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Theory X and Theory Y by Douglas McGregor
Douglas McGregor, in his book, "The Human Side of Enterprise" published in 1960, has examined theories on the behavior of individuals at work. He formulated two models which he calls Theory X and Theory Y.
Theory X Assumptions
The average human being has an inherent dislike of work and will avoid it if possible.
Because of their dislike for work, most people must be controlled and threatened before they will work hard enough.
The average human prefers to be directed, dislikes responsibility, is unambitious, and desires security above everything.
These assumptions underlie most organizational principles today, giving rise to both "tough" management with punishments and tight controls and "soft" management that aims at harmony at work.
Both of these approaches are flawed because man needs more than financial rewards at work; he also needs some deeper, higher-order motivation – the opportunity to fulfill himself.
Theory X managers do not provide this opportunity to their staff, resulting in employees behaving as expected.
Theory Y Assumptions
The expenditure of physical and mental effort in work is as natural as play or rest.
Control and punishment are not the only ways to motivate people; individuals will direct themselves if they are committed to the organization's goals.
If a job is satisfying, it will lead to commitment to the organization.
The average person, under appropriate conditions, not only accepts but seeks responsibility.
Imagination, creativity, and ingenuity can be utilized to solve work problems by a large number of employees.
In modern industrial conditions, the intellectual potential of the average person is only partially utilized.
Comments on Theory X and Theory Y Assumptions
These assumptions are based on social science research, demonstrating the untapped potential in individuals that organizations should acknowledge to enhance effectiveness.
McGregor views Theory X and Theory Y as two distinct attitudes. While Theory Y may be challenging to implement on the shop floor in large production operations, it can be initially applied in managing managers and professionals.
In "The Human Side of Enterprise," McGregor illustrates how Theory Y impacts promotions, salaries, effective manager development, and participative problem-solving.
Managers must exercise authority as part of their role, but where possible, obtaining commitment to objectives through clear explanations results in employees exerting self-direction and control, leading to improved work quality.
When employees can be consulted, especially those emotionally mature and motivated towards their work, a participative problem-solving approach yields better results compared to authoritarian orders.
Once management recognizes the underestimation of human resources potential and embraces the Theory Y assumptions, they can invest resources in developing improved applications of the theory.
McGregor acknowledges that some of his theories may be impractical but urges managers to treat staff as responsible and valued employees to enhance organizational contributions.
CRK
From India, Vijayawada
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EMPLOYEE RETENTION
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring.
There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees.
The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons.
The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention.
What is employee retention
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they
would be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves five major things:
Employee retention would require a lot of efforts, energy, and resources but the results are worth it.
1) Compensation
<image no longer exists>
2) Environment
[img]http://t1.gstatic.com/images?q=tbn:ANd9GcR-qb40kdHsUAXZm5caCoYPkDQP-r0MOHJS9PBteX9XlI4q29VG[/img]
3) Growth
[img]http://www.shelltechnologies.com/images/careers.jpg[/img]
...to be continued...
CRK
From India, Vijayawada
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Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring.
There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees.
The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons.
The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention.
What is employee retention
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they
would be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves five major things:
Employee retention would require a lot of efforts, energy, and resources but the results are worth it.
1) Compensation
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2) Environment
[img]http://t1.gstatic.com/images?q=tbn:ANd9GcR-qb40kdHsUAXZm5caCoYPkDQP-r0MOHJS9PBteX9XlI4q29VG[/img]
3) Growth
[img]http://www.shelltechnologies.com/images/careers.jpg[/img]
...to be continued...
CRK
From India, Vijayawada
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(Fact Checked)-[response] Employee retention is accurately defined as the process of encouraging employees to stay in an organization. Retention strategies include compensation, environment, and growth. Well done! (1 Acknowledge point)
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EMPLOYEE RETENTION
Contd...
1) Compensation
Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes -
Basic wage
House rent allowance
Dearness allowance
City compensatory allowance
<image no longer exists>
Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employee’s performance and his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.
Economic benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage.
Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family.
After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.
2) Career Growth
Growth and development are the integral part of every individual’s career. If an employee can not foresee his path of career development in his current organization, there are chances that he’ll leave the organization as soon as he gets an opportunity.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high.
Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees’ priority is to work for themselves and later on comes the organization. If he’s not satisfied with his growth, he’ll not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, they’ll leave the organization for better jobs. Organization should not limit the resources on which organization’s success depends. These trainings can be given to improve many skills like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills
C or customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees.
3) Support
Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel valued to the organization.
The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows:
By providing feedback
By giving recognition and rewards
By counseling them
By providing emotional support
<image no longer exists>
4) Relationship
Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employee’s interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.
A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.
Respect for the individual: Respect for the individual is the must in the organization.
Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates.
Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised.
Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and he’ll show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.
Individual development: Taking proper care of employees includes acknowledgement to the employee’s dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.
Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.
5) Organization Environment
It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets.
People want to work for an organization which provides
Appreciation for the work done
Ample opportunities to grow
A friendly and cooperative environment
A feeling that the organization is second home to the employee
Organization environment includes
Culture
Values
Company reputation
Quality of people in the organization
Employee development and career growth
Risk taking
Leading technologies
Trust
Types of environment the employee needs in an organization
Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc.
Support environment: Organization can provide support in the form of work-life balance. Work life balance includes:
Flexible hours
Telecommuting
Dependent care
Alternate work schedules
Vacations
Wellness
Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition.
Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect.
CRK
From India, Vijayawada
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Contd...
1) Compensation
Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes -
Basic wage
House rent allowance
Dearness allowance
City compensatory allowance
<image no longer exists>
Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employee’s performance and his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.
Economic benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage.
Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family.
After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.
2) Career Growth
Growth and development are the integral part of every individual’s career. If an employee can not foresee his path of career development in his current organization, there are chances that he’ll leave the organization as soon as he gets an opportunity.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high.
Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees’ priority is to work for themselves and later on comes the organization. If he’s not satisfied with his growth, he’ll not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, they’ll leave the organization for better jobs. Organization should not limit the resources on which organization’s success depends. These trainings can be given to improve many skills like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills
C or customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees.
3) Support
Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel valued to the organization.
The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows:
By providing feedback
By giving recognition and rewards
By counseling them
By providing emotional support
<image no longer exists>
4) Relationship
Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employee’s interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.
A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.
Respect for the individual: Respect for the individual is the must in the organization.
Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates.
Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised.
Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and he’ll show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.
Individual development: Taking proper care of employees includes acknowledgement to the employee’s dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.
Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.
5) Organization Environment
It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets.
People want to work for an organization which provides
Appreciation for the work done
Ample opportunities to grow
A friendly and cooperative environment
A feeling that the organization is second home to the employee
Organization environment includes
Culture
Values
Company reputation
Quality of people in the organization
Employee development and career growth
Risk taking
Leading technologies
Trust
Types of environment the employee needs in an organization
Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc.
Support environment: Organization can provide support in the form of work-life balance. Work life balance includes:
Flexible hours
Telecommuting
Dependent care
Alternate work schedules
Vacations
Wellness
Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition.
Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect.
CRK
From India, Vijayawada
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(Fact Checked)-[response] The user's reply on employee retention, compensation, career growth, support, relationships, and organizational environment aligns with best HR practices and principles. (1 Acknowledge point)
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EMPLOYEE RETENTION
Contd...
Importance of Employee Retention
Employees are the backbone of every organization and hence considered to be an important asset for every employer. It’s their knowledge and strength which helps the organization to reach the ladder of success.
Therefore, their contribution towards growth and success of organization cannot be overlooked or ignored. So, it’s very important for employers to understand their employee’s needs and make them content and satisfied.
Today the whole world is a small place. Due to increased technology and communication level, the whole world is easily reachable and so jobs have also become easily accessible. Holding and retaining its employees especially its knowledge bank is a big challenge for every organization. This is because; getting right people for right profile with right attitude towards work is not easy. Beside this, it involves risks, costs and time as well. Thus, every employee is precious and organizations should always try to retain them and from getting poached.
[img]http://www.voiceprism.com/solutions/images/hr_diagram.gif[/img]
Hiring new employees requires good amount of time and money. It involves lot of procurement planning, implementation and providing training to the new employee. Besides this, there is always a risk if the new employee selected will adjust to the new environment, his dedication and work efficiency etc. So, it’s a challenge for organizations to find and keep the best people, who can contribute towards the growth and success of every organization.
Resignations are quite infectious. Directly or indirectly it affects the thoughts of other employees. This leads to loss of return from its employees .Therefore, every organization should develop clear understanding and expectations from their employees. This implies, every organization should take care of needs and requirements of their employees and at the same time should clear them about their expectations from them. This helps the employees from getting poached.
When an employee works for an organization he gathers detail knowledge about the organization, its competitors, working style, different projects etc. So, when he leaves the place, there is loss of knowledge. Besides this, sometimes this information’s gets misused by its competitors or rival company in the market.
Employees are related to its customers and are encouraged by organizations to develop healthy relationship with them to attract business. But, when employees leave the organizations, there is interruption of customer service and thus this affects the business and can even lead to business loss.
A higher retention rate helps to build goodwill of the company. It creates a healthy working environment not only amongst its employees but it also acts a motivational source for others to join the organization.In addition to this, customers also develop a strong positive image about the organization and thus build long term relationship with them .This contributes towards more business and hence success and growth .
Thus, retention is of paramount importance for companies as this reduces the risk of losing manpower talent and thus contributes towards its growth.
CRK
From India, Vijayawada
Acknowledge(0)Amend(0)
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Contd...
Importance of Employee Retention
Employees are the backbone of every organization and hence considered to be an important asset for every employer. It’s their knowledge and strength which helps the organization to reach the ladder of success.
Therefore, their contribution towards growth and success of organization cannot be overlooked or ignored. So, it’s very important for employers to understand their employee’s needs and make them content and satisfied.
Today the whole world is a small place. Due to increased technology and communication level, the whole world is easily reachable and so jobs have also become easily accessible. Holding and retaining its employees especially its knowledge bank is a big challenge for every organization. This is because; getting right people for right profile with right attitude towards work is not easy. Beside this, it involves risks, costs and time as well. Thus, every employee is precious and organizations should always try to retain them and from getting poached.
[img]http://www.voiceprism.com/solutions/images/hr_diagram.gif[/img]
Hiring new employees requires good amount of time and money. It involves lot of procurement planning, implementation and providing training to the new employee. Besides this, there is always a risk if the new employee selected will adjust to the new environment, his dedication and work efficiency etc. So, it’s a challenge for organizations to find and keep the best people, who can contribute towards the growth and success of every organization.
Resignations are quite infectious. Directly or indirectly it affects the thoughts of other employees. This leads to loss of return from its employees .Therefore, every organization should develop clear understanding and expectations from their employees. This implies, every organization should take care of needs and requirements of their employees and at the same time should clear them about their expectations from them. This helps the employees from getting poached.
When an employee works for an organization he gathers detail knowledge about the organization, its competitors, working style, different projects etc. So, when he leaves the place, there is loss of knowledge. Besides this, sometimes this information’s gets misused by its competitors or rival company in the market.
Employees are related to its customers and are encouraged by organizations to develop healthy relationship with them to attract business. But, when employees leave the organizations, there is interruption of customer service and thus this affects the business and can even lead to business loss.
A higher retention rate helps to build goodwill of the company. It creates a healthy working environment not only amongst its employees but it also acts a motivational source for others to join the organization.In addition to this, customers also develop a strong positive image about the organization and thus build long term relationship with them .This contributes towards more business and hence success and growth .
Thus, retention is of paramount importance for companies as this reduces the risk of losing manpower talent and thus contributes towards its growth.
CRK
From India, Vijayawada
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-[response] The user's reply regarding the importance of employee retention aligns with best practices in Human Resource Management. It emphasizes the significance of retaining employees for organizational success. (1 Acknowledge point)
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Dear CRK,
First of all, thank you for all the precious information that you share. Just reading your threads makes me fall for this subject again and again. I go through all your information very carefully. Thanks once again.
I would like to request that you share your knowledge and information on the models and theories related to HR briefly.
Thank you.
Regards,
CLASSREP
From India, Delhi
Acknowledge(0)Amend(0)
First of all, thank you for all the precious information that you share. Just reading your threads makes me fall for this subject again and again. I go through all your information very carefully. Thanks once again.
I would like to request that you share your knowledge and information on the models and theories related to HR briefly.
Thank you.
Regards,
CLASSREP
From India, Delhi
Acknowledge(0)Amend(0)
EMPLOYEE RETENTION
Why Employees leave
Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be:
Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.
Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job
which mismatches his personality, then he won’t be able to perform it well and will try to find out reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in the current job will make candidate’s job and career stagnant.
<image no longer exists>
Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job.
Lack of trust and support in coworkers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and management can make office environment unfriendly and difficult to work in.
Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization.
Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.
New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization.
From India, Vijayawada
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Why Employees leave
Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be:
Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.
Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job
which mismatches his personality, then he won’t be able to perform it well and will try to find out reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in the current job will make candidate’s job and career stagnant.
<image no longer exists>
Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job.
Lack of trust and support in coworkers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and management can make office environment unfriendly and difficult to work in.
Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization.
Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.
New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization.
From India, Vijayawada
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(Fact Checked)-The user's reply on employee retention reasons is accurate based on HR principles and practices. Well done! (1 Acknowledge point)
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Source:Naurki hub
EMPLOYEE RETENTION
Contd..
Employee Retention Strategies
The basic practices which should be kept in mind in the employee retention strategies are:
1. Hire the right people in the first place.
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the organization.
4. Have faith in them, trust them and respect them.
5. Provide them information and knowledge.
6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
8. Keep their morale high.
9. Create an environment where the employees want to work and have fun.
These practices can be categorized in 3 levels: Low, medium and high level.
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LOW LEVEL
Appreciating and recognizing a well done job
Personalized well done and thank-you cards from supervisors
Congratulations e-cards or cards sent to spouses/families
Voicemails or messages from top management
Periodic days off for good performance
Rewards ( gift, certificates, monetary and non monetary rewards)
Recognizing professional as well as personal significant events
Wedding gifts
Anniversary gifts
New born baby gifts
Scholarships for employee’s children
Get well cards/flowers
Birthday cards, celebrations and gifts
Providing benefits
Home insurance plans
Legal insurance
Travel insurance
Disability programs
Providing perks: It includes coupons, discounts, rebates, etc
Discounts in cinema halls, museums, restaurants, etc.
Retail store discounts
Computer peripherals purchase discounts
Providing workplace conveniences
On-site ATM
On-site facilities for which cost is paid by employees
laundry facility for bachelors
Shipping services
Assistance with tax calculations and submission of forms
Financial planning assistance
Casual dress policies
Facilities for expectant mothers
Parking
Parenting guide
Lactation rooms
Flexi timings
Fun at work
Celebrate birthdays, anniversaries, retirements, promotions, etc
Holiday parties and holiday gift certificates
Occasional parties like diwali, holi, dushera, etc
Organize get together for watching football, hockey, cricket matches
Organize picnics and trips for movies etc
Sports outings like cricket match etc
Indoor games
Occasional stress relievers
“Casual dress” day
“Green is the color” day
Handwriting analysis
Tatoo, mehandi, hair braiding stalls on weekends
Mini cricket in office
Ice cream Fridays
Holi-Day breakfast
Employee support in tough time or personal crisis
Personal loans for emergencies
Childcare and eldercare services
Employee Assistance Programs ( Counseling sessions etc)
Emergency childcare services
MEDIUM LEVEL
Appreciating and recognizing a well done job
Special bonus for successfully completing firm-sponsored certifications
Benefit programs for family support
Child adoption benefits
Flexible benefits
Dependents care assistance
Medical care reimbursement
Providing conveniences at workplace
Gymnasiums
Athletic membership program
Providing training and development and personal growth opportunities
Sabbatical programs
Professional skills development
Individualized career guidance
HIGH LEVEL
Promoting Work/Life Effectiveness
Develop flexible schedules
Part-time schedules
Extended leaves of absence
Develop Support Services
On-site day care facility etc.
Understand employee needs: This can be done through proper management style and culture
Listen to the employee and show interest in ideas
Appreciate new ideas and reward risk-taking
Show support for individual initiative
Encourage creativity
Encouraging professional training and development and/or personal growth opportunities: It can be done through:
Mentoring programs
Performance feedback programs
Provide necessary tools to the employees to achieve their professional and personal goals
Getting the most out of employee interests and talents
Higher study opportunities for employees
Vocational counseling
[img]http://t3.gstatic.com/images?q=tbn:ANd9GcRPUi5rwV24MQhSf7l6j0lqjHn_1hwn4 8c_tH5RbiDFt_vgRamX[/img]
Offer personalized career guidance to employees
Provide an environment of trust: Communication is the most important and effective way to develop trust.
Suggestion committees can be created
Open door communication policy can be followed
Regular feedbacks on organization’s goals and activities should be taken from the employees by:
Management communications
Intranet and internet can be used as they provide 24X7 access to the information
Newsletters, notice boards, etc.
Hire the right people from the beginning: employee retention is not a process that begins at the end. The process of retention begins right from the start of the recruitment process.
The new joinees should fit with the organization’s culture. The personality, leadership characteristics of the candidate should be in sync with the culture of the hiring organization.
Referral bonus should be given to the employees for successful hires. They are the best source of networking.
Proper training should be given to the managers on interview and management techniques.
An internship program can be followed to recruit the fresh graduates.
CRK
From India, Vijayawada
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(Fact Checked)-[The user's reply provides comprehensive and accurate information on employee retention strategies. No corrections needed. Keep up the good work!] (1 Acknowledge point)
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EMPLOYEE RETENTION
Contd..
Myths
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees.
[img]http://t2.gstatic.com/images?q=tbn:ANd9GcS8YeAIGJmZnfLSkWAlEZsMVmkxXYxZl 9_EurXo3fJ29d2-yDmmuQ[/img]
The picture states the latest statement that corporate believes in “Love them or Lose them”
The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons.
The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention.
The process of retention is not as easy at it seems. There are so many tactics and strategies used in retention of employees by the organizations. The basic purpose of these strategies should be to increase employee satisfaction, boost employee morale hence achieve retention. But some times these strategies are not used properly or even worse, wrong strategies are used. Because of which these strategies fail to achieve the desired results.There are many myths related to the employee retention process. These myths exist because the strategies being used are either wrong or are being used from a long time.
These myths prevent the employer from successfully implementing the retention strategies. Let us learn about some of these myths.
Employees leave an organization for more pay: Money may be the motivating factor for some but for many people it is not the most important factor. Money matters more to the low-income-employees for whom it’s a survival issue. Money can make an employee stay in an organization but not for long.
The factors more important than money are job satisfaction, job responsibilities, and individual’s skill development. The employers should understand this and work out some other ways to make employees feel satisfied. When employees leave, management tries to retain them by offering more money. But instead they should try to figure out the main reason behind it. Issues that are mainly the cause of dissatisfaction are organization’s policies and procedures, working conditions, relationship with the supervisor and salary, etc. For such employees, achievement, growth, respect, recognition, is the main concern.
<image no longer exists>
Incentives can increase productivity: Incentives can surely increase productivity but not for long term. Cash incentives, volume work targets and speed awards are old management beliefs. They can generate work speedily and in volumes but can’t boost employee commitment. Rather speed can hamper the quality of work produced. What really glues employees to their work and organization is quality work, meaningful responsibilities, recognition, respect, growth opportunities and friendly supervisors.
Employees run away from responsibilities: It is a myth that employees run from responsibilities. In-fact employees feel more responsible if they are given extra responsibilities apart from their regular job. Employees look for variety, greater control on the processes and authority to take decisions in their present job. They want opportunities to learn and grow. Management can assign extra responsibilities to their employees and appreciate them on the completion of these tasks. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee.
Loyalty is a thing of the past: Employees can be loyal but what they need is an employer for whom they can be loyal. There is no reason for the employee to hop jobs if he’s satisfied with the employer.
Taking measures to increase employee satisfaction will be expensive for the organizations: The things actually required to improve employee satisfaction like respect, career growth and development, appreciation, etc. can’t be bought. They are free of cost. An employer or management that reacts well to the employee’s ideas and suggestions is enough for the employees to be retained.
CRK
From India, Vijayawada
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Contd..
Myths
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees.
[img]http://t2.gstatic.com/images?q=tbn:ANd9GcS8YeAIGJmZnfLSkWAlEZsMVmkxXYxZl 9_EurXo3fJ29d2-yDmmuQ[/img]
The picture states the latest statement that corporate believes in “Love them or Lose them”
The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons.
The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention.
The process of retention is not as easy at it seems. There are so many tactics and strategies used in retention of employees by the organizations. The basic purpose of these strategies should be to increase employee satisfaction, boost employee morale hence achieve retention. But some times these strategies are not used properly or even worse, wrong strategies are used. Because of which these strategies fail to achieve the desired results.There are many myths related to the employee retention process. These myths exist because the strategies being used are either wrong or are being used from a long time.
These myths prevent the employer from successfully implementing the retention strategies. Let us learn about some of these myths.
Employees leave an organization for more pay: Money may be the motivating factor for some but for many people it is not the most important factor. Money matters more to the low-income-employees for whom it’s a survival issue. Money can make an employee stay in an organization but not for long.
The factors more important than money are job satisfaction, job responsibilities, and individual’s skill development. The employers should understand this and work out some other ways to make employees feel satisfied. When employees leave, management tries to retain them by offering more money. But instead they should try to figure out the main reason behind it. Issues that are mainly the cause of dissatisfaction are organization’s policies and procedures, working conditions, relationship with the supervisor and salary, etc. For such employees, achievement, growth, respect, recognition, is the main concern.
<image no longer exists>
Incentives can increase productivity: Incentives can surely increase productivity but not for long term. Cash incentives, volume work targets and speed awards are old management beliefs. They can generate work speedily and in volumes but can’t boost employee commitment. Rather speed can hamper the quality of work produced. What really glues employees to their work and organization is quality work, meaningful responsibilities, recognition, respect, growth opportunities and friendly supervisors.
Employees run away from responsibilities: It is a myth that employees run from responsibilities. In-fact employees feel more responsible if they are given extra responsibilities apart from their regular job. Employees look for variety, greater control on the processes and authority to take decisions in their present job. They want opportunities to learn and grow. Management can assign extra responsibilities to their employees and appreciate them on the completion of these tasks. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee.
Loyalty is a thing of the past: Employees can be loyal but what they need is an employer for whom they can be loyal. There is no reason for the employee to hop jobs if he’s satisfied with the employer.
Taking measures to increase employee satisfaction will be expensive for the organizations: The things actually required to improve employee satisfaction like respect, career growth and development, appreciation, etc. can’t be bought. They are free of cost. An employer or management that reacts well to the employee’s ideas and suggestions is enough for the employees to be retained.
CRK
From India, Vijayawada
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(Fact Checked)-The user reply provides accurate information on employee retention strategies and dispels common myths related to retention. The reply aligns with best practices in HR management. (1 Acknowledge point)
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COMPENSATION MANAGEMENT
Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees.
Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.
Components of Compensation System
Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:
<image no longer exists>
Types of Compensation
Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity.
Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services.
House Rent Allowance
Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.
Conveyance
Organizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employees to motivate them.
<image no longer exists>
Leave Travel Allowance
These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization.
Medical Reimbursement
Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.
Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one month’s salary of the employee.
Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity.
Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.
Leave Policy
It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.
Overtime Policy
Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional and social security.
<image no longer exists>
Insurance
Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free.
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.
Holiday Homes
Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.
CRK
From India, Vijayawada
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Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees.
Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.
Components of Compensation System
Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:
<image no longer exists>
Types of Compensation
Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity.
Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services.
House Rent Allowance
Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.
Conveyance
Organizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employees to motivate them.
<image no longer exists>
Leave Travel Allowance
These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization.
Medical Reimbursement
Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.
Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one month’s salary of the employee.
Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity.
Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.
Leave Policy
It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.
Overtime Policy
Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional and social security.
<image no longer exists>
Insurance
Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free.
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.
Holiday Homes
Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.
CRK
From India, Vijayawada
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COMPENSATION MANAGEMENT
Contd...
Need of Compensation Management
A good compensation package is important to motivate the employees to increase the organizational productivity.
Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals.
Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose.
The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards
<image no longer exists>
Strategic Compensation
Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In today’s competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The compensation systems have changed from traditional ones to strategic compensation systems.
CRK
From India, Vijayawada
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Contd...
Need of Compensation Management
A good compensation package is important to motivate the employees to increase the organizational productivity.
Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals.
Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose.
The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards
<image no longer exists>
Strategic Compensation
Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In today’s competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The compensation systems have changed from traditional ones to strategic compensation systems.
CRK
From India, Vijayawada
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(Fact Checked)-[response] The user's reply on Compensation Management aligns with the importance of compensation in motivating employees and attracting talent. It accurately highlights the significance of strategic compensation in alignment with business goals. (1 Acknowledge point)
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Compensation Management
*Contd...*
- By Regu Krishnan, Dy. Manager, Ford India
Compensation Management in Corporates & Components of Compensation
Introduction:
The increasing competitiveness of the labor market and turnover of employees have resulted in a nightmare in compensation planning. Apart from this, the growing demands of the employees and competitive salaries offered by multinational companies have almost resulted in a compensation war in certain industries.
Therefore, the human resources managers and tax experts have to evolve proper compensation planning for high-end and qualified employees. The components of compensation have to be devised in such a way that it focuses on the growing demands of employees while retaining the competitiveness and profitability of the company.
Industry-driven factors:
There are also certain factors driving the compensation planning. The compensation packages of knowledge workers are different from those of the manufacturing sector. The employees working in call centers are compensated differently compared to employees of technology-driven companies.
Some notable examples are:
a) Compensation paid in IT/ITES,
b) Investment banking/Equity research,
c) Software companies,
d) High-end industries having high technology content like Bio/Nano technology,
e) Private research and related fields.
Compensation Oval:
[img]http://www.indianmba.com/Articles_on_Management/AOM31/AoM31a.jpg[/img]
Components of Compensation:
Basic Wages/Salaries:
These refer to the cash component of the wage structure based on which other elements of compensation may be structured. It is normally a fixed amount subject to changes based on annual increments or periodical pay hikes. It is structured based on the position of an individual in the organization and differs from grades to grades.
Dearness Allowance:
The payment of dearness allowance facilitates employees and workers to face the price increase or inflation of prices of goods and services consumed by them. The onslaught of price increase has a major bearing on the living conditions of the labor. The increasing prices reduce the compensation to nothing, and the money's worth is coming down based on the level of inflation.
The payment of dearness allowance, which may be a fixed percentage of the basic wage, enables the employees to face the increasing prices.
Bonus:
The bonus can be paid in different ways. It can be a fixed percentage of the basic wage paid annually or in proportion to the profitability. The government also prescribes a minimum statutory bonus for all employees and workers.
There is also a bonus plan that compensates the managers and employees based on the sales revenue or profit margin achieved. Bonus plans can also be based on piece wages but depend on the productivity of labor.
Commissions:
Commission to managers and employees may be based on the sales revenue or profits of the company. It is always a fixed percentage of the target achieved. For taxation purposes, the commission is again a taxable component of compensation.
The payment of commission as a component of compensation is heavily practiced on target-based sales. Depending on the targets achieved, companies may pay a commission on a monthly or periodical basis.
Mixed Plans:
Companies may also pay employees and others a combination of pay as well as commissions. This plan is called a combination or mixed plan. Apart from the salaries paid, the employees may be eligible for a fixed percentage of a commission upon the achievement of a fixed target of sales or profits or performance objectives.
Nowadays, most of the corporate sectors are following this practice. This is also termed as a variable component of compensation.
Piece Rate Wages:
Piece rate wages are prevalent in the manufacturing sector. The laborers are paid wages for each quantity produced by them. The gross earnings of the labor would be equivalent to the number of goods produced by them.
Piece rate wages improve productivity and are an absolute measurement of productivity to wage structure. The fairness of compensation is totally based on productivity and not on other qualitative factors.
The Gantt productivity planning and Taylor's plan of wages are examples of piece rate wages and the related consequences.
Sign-On Bonuses:
The latest trend in compensation planning is the lump sum bonus for the incoming employee. A person who accepts the offer is paid a lump sum as a bonus.
Even though this practice is not prevalent in most industries, equity research and investment banking companies are paying this to attract scarce talent.
Profit-Sharing Payments:
Profit-sharing is again a novel concept nowadays. This can be paid through cash or through ESOPS. The structuring of wages may be done in such a way that it attracts competitiveness and improved productivity.
Profit-sharing can also be in the form of deferred compensation at the time of retirement. At the time of retirement, the employees may be paid a lump sum or retirement benefits.
Fringe Benefits:
The provision of fringe benefits does not attract any explanation. These include:
a) Company cars
b) Paid vacations
c) Membership of social/cultural clubs
d) Entertainment tickets/allowances
e) Discounted travel tickets
f) Family vacation packages.
Reimbursements:
Employees, depending on their gradations in the organization, may get reimbursements based on the expenses incurred and substantiated. Certain expenses are also paid based on expenses incurred during the course of business.
In many cases, employers provide advances to the employees for incurring certain expenses during the course of business.
Some examples are:
a) Travel expenses
b) Entertainment expenses
c) Out-of-pocket expenses
d) Refreshments expenses during office routine outside office premises.
Sickness Benefits/Pregnancy:
The increasing social consciousness of corporates has resulted in the payment of sickness benefits to the employees of companies. This also includes payments during the pregnancy of women employees.
The expenses incurred due to injury or illness are compensated or reimbursed to the employees. In certain companies, the death of an employee is compensated financially.
Companies are also providing supporting financial benefits to the families of the bereaved employees. However, companies covering these costs through appropriate insurance policies like medical and life insurance.
Conclusion:
The whole idea of compensation management can be better understood through the following Pyramid structure.
[img]http://www.indianmba.com/Articles_on_Management/AOM31/AoM31b.jpg[/img]
CRK
From India, Vijayawada
Acknowledge(0)Amend(0)
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0
*Contd...*
- By Regu Krishnan, Dy. Manager, Ford India
Compensation Management in Corporates & Components of Compensation
Introduction:
The increasing competitiveness of the labor market and turnover of employees have resulted in a nightmare in compensation planning. Apart from this, the growing demands of the employees and competitive salaries offered by multinational companies have almost resulted in a compensation war in certain industries.
Therefore, the human resources managers and tax experts have to evolve proper compensation planning for high-end and qualified employees. The components of compensation have to be devised in such a way that it focuses on the growing demands of employees while retaining the competitiveness and profitability of the company.
Industry-driven factors:
There are also certain factors driving the compensation planning. The compensation packages of knowledge workers are different from those of the manufacturing sector. The employees working in call centers are compensated differently compared to employees of technology-driven companies.
Some notable examples are:
a) Compensation paid in IT/ITES,
b) Investment banking/Equity research,
c) Software companies,
d) High-end industries having high technology content like Bio/Nano technology,
e) Private research and related fields.
Compensation Oval:
[img]http://www.indianmba.com/Articles_on_Management/AOM31/AoM31a.jpg[/img]
Components of Compensation:
Basic Wages/Salaries:
These refer to the cash component of the wage structure based on which other elements of compensation may be structured. It is normally a fixed amount subject to changes based on annual increments or periodical pay hikes. It is structured based on the position of an individual in the organization and differs from grades to grades.
Dearness Allowance:
The payment of dearness allowance facilitates employees and workers to face the price increase or inflation of prices of goods and services consumed by them. The onslaught of price increase has a major bearing on the living conditions of the labor. The increasing prices reduce the compensation to nothing, and the money's worth is coming down based on the level of inflation.
The payment of dearness allowance, which may be a fixed percentage of the basic wage, enables the employees to face the increasing prices.
Bonus:
The bonus can be paid in different ways. It can be a fixed percentage of the basic wage paid annually or in proportion to the profitability. The government also prescribes a minimum statutory bonus for all employees and workers.
There is also a bonus plan that compensates the managers and employees based on the sales revenue or profit margin achieved. Bonus plans can also be based on piece wages but depend on the productivity of labor.
Commissions:
Commission to managers and employees may be based on the sales revenue or profits of the company. It is always a fixed percentage of the target achieved. For taxation purposes, the commission is again a taxable component of compensation.
The payment of commission as a component of compensation is heavily practiced on target-based sales. Depending on the targets achieved, companies may pay a commission on a monthly or periodical basis.
Mixed Plans:
Companies may also pay employees and others a combination of pay as well as commissions. This plan is called a combination or mixed plan. Apart from the salaries paid, the employees may be eligible for a fixed percentage of a commission upon the achievement of a fixed target of sales or profits or performance objectives.
Nowadays, most of the corporate sectors are following this practice. This is also termed as a variable component of compensation.
Piece Rate Wages:
Piece rate wages are prevalent in the manufacturing sector. The laborers are paid wages for each quantity produced by them. The gross earnings of the labor would be equivalent to the number of goods produced by them.
Piece rate wages improve productivity and are an absolute measurement of productivity to wage structure. The fairness of compensation is totally based on productivity and not on other qualitative factors.
The Gantt productivity planning and Taylor's plan of wages are examples of piece rate wages and the related consequences.
Sign-On Bonuses:
The latest trend in compensation planning is the lump sum bonus for the incoming employee. A person who accepts the offer is paid a lump sum as a bonus.
Even though this practice is not prevalent in most industries, equity research and investment banking companies are paying this to attract scarce talent.
Profit-Sharing Payments:
Profit-sharing is again a novel concept nowadays. This can be paid through cash or through ESOPS. The structuring of wages may be done in such a way that it attracts competitiveness and improved productivity.
Profit-sharing can also be in the form of deferred compensation at the time of retirement. At the time of retirement, the employees may be paid a lump sum or retirement benefits.
Fringe Benefits:
The provision of fringe benefits does not attract any explanation. These include:
a) Company cars
b) Paid vacations
c) Membership of social/cultural clubs
d) Entertainment tickets/allowances
e) Discounted travel tickets
f) Family vacation packages.
Reimbursements:
Employees, depending on their gradations in the organization, may get reimbursements based on the expenses incurred and substantiated. Certain expenses are also paid based on expenses incurred during the course of business.
In many cases, employers provide advances to the employees for incurring certain expenses during the course of business.
Some examples are:
a) Travel expenses
b) Entertainment expenses
c) Out-of-pocket expenses
d) Refreshments expenses during office routine outside office premises.
Sickness Benefits/Pregnancy:
The increasing social consciousness of corporates has resulted in the payment of sickness benefits to the employees of companies. This also includes payments during the pregnancy of women employees.
The expenses incurred due to injury or illness are compensated or reimbursed to the employees. In certain companies, the death of an employee is compensated financially.
Companies are also providing supporting financial benefits to the families of the bereaved employees. However, companies covering these costs through appropriate insurance policies like medical and life insurance.
Conclusion:
The whole idea of compensation management can be better understood through the following Pyramid structure.
[img]http://www.indianmba.com/Articles_on_Management/AOM31/AoM31b.jpg[/img]
CRK
From India, Vijayawada
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(Fact Checked)-The user's reply on Compensation Management is factually accurate and provides a comprehensive overview of the components involved. Well done! (1 Acknowledge point)
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# Compensation Management
## Components of Payroll
Payroll refers to the administration of employees' salaries, wages, bonuses, net pay, and deductions. It consists of the employee ID, employee name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals and lodging, etc. There are some deductions such as PF, taxes, loan installments, or advances taken by the employee.
Payroll is administered on a monthly basis and annually.
While administrating the monthly payroll, basic salary, HRA, conveyance, and other special allowances such as mobile, etc., are considered. There are some deductions which are provident fund (12%) of the salary, taxes, and other deductions.
Deductions such as tax and loans/advances taken by the employee from organizations are deducted only where applicable. Dearness Allowance and House Rent Allowance are provided at a fixed rate stated by employment law. Provident fund is deducted from the gross salary of the employee on a monthly basis as per employment law, which is provided later to the employee. Organizations also contribute the same amount to the provident fund of the employee.
Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal vouchers/reimbursements, and medical reimbursements.
Allowances, incentives, bonuses, and reimbursements are based on organizational policies. Some organizations provide allowances at a fixed rate, say 10% or 12% of the basic salary. Some organizations go for performance-based incentives.
From India, Vijayawada
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## Components of Payroll
Payroll refers to the administration of employees' salaries, wages, bonuses, net pay, and deductions. It consists of the employee ID, employee name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals and lodging, etc. There are some deductions such as PF, taxes, loan installments, or advances taken by the employee.
Payroll is administered on a monthly basis and annually.
While administrating the monthly payroll, basic salary, HRA, conveyance, and other special allowances such as mobile, etc., are considered. There are some deductions which are provident fund (12%) of the salary, taxes, and other deductions.
Deductions such as tax and loans/advances taken by the employee from organizations are deducted only where applicable. Dearness Allowance and House Rent Allowance are provided at a fixed rate stated by employment law. Provident fund is deducted from the gross salary of the employee on a monthly basis as per employment law, which is provided later to the employee. Organizations also contribute the same amount to the provident fund of the employee.
Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal vouchers/reimbursements, and medical reimbursements.
Allowances, incentives, bonuses, and reimbursements are based on organizational policies. Some organizations provide allowances at a fixed rate, say 10% or 12% of the basic salary. Some organizations go for performance-based incentives.
From India, Vijayawada
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COMPENSATION MANAGEMENT
Contd...
Payroll Management Process
Calculation of gross salaries and deductible amounts is a tedious task which involves risk. Some of the organizations use the traditional manual method of payroll processing and some go for the advanced payroll processing software. An organization opts for any of the following payroll processing methods available::
Manual System
Manual payroll system is the traditional payroll system which involves pen and ink, adding machine, spreadsheet, etc instead of computers, software and other computerized aids. The process was very popular when there were no computerized means for payroll processing.
Now-a-days it is only few small scale organizations in the remote areas that use the manual payroll. Sometimes the construction industry and manufacturing industry also use the manual payroll systems for the contractual labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time consuming and risky as it is more prone to errors.
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Accountant
Accountant is a professional having a degree/diploma course in finance/accountancy. He/she is responsible for all the activities related to payroll accounting. He/she has the sound knowledge of accounting principles and globally accepted standards.
The process adds costs to the organization. It involves paying someone who is responsible for calculating the salaries of others. The financial control regarding salary goes in the hand of accountant.
Payroll Software
In today’s computerized environment, payroll system has also developed itself into automated software that performs every action needed by the payroll process. It helps in calculating the payable amounts and deductions very easily. It also helps in generating the pay slips in lesser time. Automated calculations result in no errors. Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.
Payroll Outsourcing
Payroll outsourcing involves a third party (an outsourcing company) in the calculations of salaries and deductions. The outsourcing organization is responsible for all the activities of the payroll accounting. It saves time and cost for the organization. If there is more number of employees (say more than 900-1000) in the organization, payroll outsourcing would be very much beneficial.
The data is provided to the consultants/outsourcing firms. The various payroll functions undertaken by the outsourcing organizations are as follows:
Analysis of Payroll records, payroll taxes
Medical claim processing
Employee Insurance & Provident fund processing
Quality Audit procedures & planning
CRK
From India, Vijayawada
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Contd...
Payroll Management Process
Calculation of gross salaries and deductible amounts is a tedious task which involves risk. Some of the organizations use the traditional manual method of payroll processing and some go for the advanced payroll processing software. An organization opts for any of the following payroll processing methods available::
Manual System
Manual payroll system is the traditional payroll system which involves pen and ink, adding machine, spreadsheet, etc instead of computers, software and other computerized aids. The process was very popular when there were no computerized means for payroll processing.
Now-a-days it is only few small scale organizations in the remote areas that use the manual payroll. Sometimes the construction industry and manufacturing industry also use the manual payroll systems for the contractual labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time consuming and risky as it is more prone to errors.
<image no longer exists>
Accountant
Accountant is a professional having a degree/diploma course in finance/accountancy. He/she is responsible for all the activities related to payroll accounting. He/she has the sound knowledge of accounting principles and globally accepted standards.
The process adds costs to the organization. It involves paying someone who is responsible for calculating the salaries of others. The financial control regarding salary goes in the hand of accountant.
Payroll Software
In today’s computerized environment, payroll system has also developed itself into automated software that performs every action needed by the payroll process. It helps in calculating the payable amounts and deductions very easily. It also helps in generating the pay slips in lesser time. Automated calculations result in no errors. Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.
Payroll Outsourcing
Payroll outsourcing involves a third party (an outsourcing company) in the calculations of salaries and deductions. The outsourcing organization is responsible for all the activities of the payroll accounting. It saves time and cost for the organization. If there is more number of employees (say more than 900-1000) in the organization, payroll outsourcing would be very much beneficial.
The data is provided to the consultants/outsourcing firms. The various payroll functions undertaken by the outsourcing organizations are as follows:
Analysis of Payroll records, payroll taxes
Medical claim processing
Employee Insurance & Provident fund processing
Quality Audit procedures & planning
CRK
From India, Vijayawada
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(Fact Checked)-The user's reply on Compensation Management and Payroll Management Process is accurate and provides detailed information on different payroll processing methods. Well done! (1 Acknowledge point)
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Dear CRK Sir,
Thank you very much for the wonderful thread. It was very insightful and helpful. :)
P.S. I am new to the forum and still not very used to the workings of the forum. The major problem I am facing right now is that I cannot download anything from any thread, whether it's a doc/ppt/pdf. I have tried using both Firefox and Chrome. Every time I try to download, I receive a pop-up message that reads like this - "You cannot download more than 1 file in 2 minutes." Even if I attempt to download after waiting for hours, I still encounter the same error.
From India, Delhi
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Thank you very much for the wonderful thread. It was very insightful and helpful. :)
P.S. I am new to the forum and still not very used to the workings of the forum. The major problem I am facing right now is that I cannot download anything from any thread, whether it's a doc/ppt/pdf. I have tried using both Firefox and Chrome. Every time I try to download, I receive a pop-up message that reads like this - "You cannot download more than 1 file in 2 minutes." Even if I attempt to download after waiting for hours, I still encounter the same error.
From India, Delhi
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Human Resource Management for diploma in Business administration. pdf
Human Resource Management.ppt
CiteHR.AI
(Fact Checked)-[response] The user reply provides an accurate and comprehensive overview of the changing role of HR professionals, aligning with modern organizational needs and strategic partnerships. (1 Acknowledge point)