kavita garg
4

Hi CRK
How r u? Thanx for your valuable contibution. I want to know that the formats that u have attached is sufficient to measure performance of employees... or we need to fill more form from employees?

From India, Ambala
CRK.MBAHR@yahoo.com
44

Hai Kavita.........:)
Very fine..... thankyou......:)
Hope the same....
The form depends on the kind of appraisal in your company, your main purpose of appraisal and the things you wish to add to extract more information on various aspects of performance of your employees.......
CRK

From India, Vijayawada
CRK.MBAHR@yahoo.com
44

PERFORMANCE APPRAISAL
Contd..

BALANCED SCORE CARD

To evaluate the organisational 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. 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 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

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 get on customer satisfaction, the customer’s perspective about the organisation, 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 the customer satisfaction. It includes the infrastructure, the long term and short term goals and objectives, organisational processes and procedures, systems and the human resources.

The innovation and learning perspective - The innovation and learning measures cover the organisation’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
CRK.MBAHR@yahoo.com
44

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
CRK.MBAHR@yahoo.com
44

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.

...to be contd...


CRK

From India, Vijayawada
garima7solanki
21

HI CRK,
I often go through your post often seen in the recent post as CRK'S Desk. Thanks for clubbing all the topics of HR and bringing it under one thread...its like "ALL UNDER ONE ROOF". Appreciate your initiative to act smart and club the entire HR Info.
It can take a good amount of energy and initiative to get yourself started in a new activity - but it takes far, far less to keep yourself doing it once you've started...............keep going!

From India, Madras
CRK.MBAHR@yahoo.com
44

Thankyou GarimaSolanki............:) With pleasure......... this thread continues...... a long journey...... Thankyou for your appreciations...... Keep checking...... CRK
From India, Vijayawada
CRK.MBAHR@yahoo.com
44

MOTIVATION

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 were 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 and 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.

<image no longer exists>

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 which 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 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 be 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 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 thery is very popular, being the introductory motivation theory for many students and managers, worldwide. To handle a number of the issues of present in the Needs Hierarchy, Clayton Alderfer devised the ERG theory, a consistent needs-based model that aligns more accurately with scientific research.

From India, Vijayawada
CRK.MBAHR@yahoo.com
44

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 behavior of individuals at work, and he has 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 he can.

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 unambiguous, and desires security above everything.

These assumptions lie behind most organizational principles today, and give rise both to "tough" management with punishments and tight controls, and "soft" management which aims at harmony at work.

Both these are "wrong" 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 give their staff this opportunity so that the employees behave in the expected fashion.

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 make people work, man will direct himself if he is committed to the aims of the organization.

If a job is satisfying, then the result will be commitment to the organization.

The average man learns, under proper conditions, not only to accept but to seek responsibility.

[img]http://www.vectorstudy.com/management_theories/img/theory_x_y.gif[/img]

Imagination, creativity, and ingenuity can be used to solve work problems by a large number of employees.

Under the conditions of modern industrial life, the intellectual potentialities of the average man are only partially utilized.

Comments on Theory X and Theory Y Assumptions

These assumptions are based on social science research which has been carried out, and demonstrate the potential which is present in man and which organizations should recognize in order to become more effective.

McGregor sees these two theories as two quite separate attitudes. Theory Y is difficult to put into practice on the shop floor in large mass production operations, but it can be used initially in the managing of managers and

professionals.

In "The Human Side of Enterprise" McGregor shows how Theory Y affects the management of promotions and salaries and the development of effective managers. McGregor also sees Theory Y as conducive to participative

problem solving.

It is part of the manager's job to exercise authority, and there are cases in which this is the only method of achieving the desired results because subordinates do not agree that the ends are desirable.

However, in situations where it is possible to obtain commitment to objectives, it is better to explain the matter fully so that employees grasp the purpose of an action. They will then exert self-direction and control to do better work - quite possibly by better methods - than if they had simply been carrying out an order which the y did not fully understand.

The situation in which employees can be consulted is one where the individuals are emotionally mature, and positively motivated towards their work; where the work is sufficiently responsible to allow for flexibility and where the employee can see her or his own position in the management hierarchy. If these conditions are present, managers will find that the participative approach to problem solving leads to much improved results compared with the alternative approach of handing out authoritarian orders.

[img]http://www.ccel.us/images/theoryXY.jpg[/img]

Once management becomes persuaded that it is under estimating the potential of its human resources, and accepts the knowledge given by social science researchers and displayed in Theory Y assumptions, then it can invest time, money and effort in developing improved applications of the theory.

McGregor realizes that some of the theories he has put forward are unrealizable in practice, but wants managers to put into operation the basic assumption that: Staff will contribute more to the organization if they are treated as responsible and valued employees.

CRK

From India, Vijayawada
CRK.MBAHR@yahoo.com
44

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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