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MANAGEMENT

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Title: MANAGEMENT


1
MANAGEMENT
2
What is HRM all about? 15.
  • Each company needs the combination of the
    following 3 factors to operate
  • M1-Money
  • M2-Man
  • M3-Manufacturing
  • Common features of these factors
  • a certain level of capacity and efficiency,
  • they are available in the market,
  • the price is determined by the relation of
    supply/demand

3
What is HRM all about? 15.
  • Special features of M2
  • Does not run out permanent resource
  • Not storable the capacity which is not used
    within a certain time frame is lost! It cant be
    reserved for next time!
  • Innovative always able to renew, creates new
    solutions
  • Makes decisions resigns from position
  • Is not owned by the company although it is not
    part of the equity, it can increase the value of
    the company (capacity, performance )

4
What is HRM all about? 15.
  • 2. Definition Human resource management is the
    function performed in organizations that
    facilitate the most effective use of people
    (employees) to achieve organizational and
    individual goals.

5
What is HRM all about? 15.
  • 3. The Diagnostic Model for HRM
  • This model in HRM is a framework that can be
    used to help managers focus on a set of relevant
    factors. There are 3 main factors included in the
    model
  • people
  • the internal and external environment and
  • the organization itself.

6
What is HRM all about? 15.
  • External Environmental forces
  • Economic Conditions Composition of the labor
    force Government requirements and regulations
    The union

External Environmental forces Economic Conditions
- Composition of the labor force - Government
requirements and regulations - The union
External Environmental influences Economic
Conditions The labor market Government
requirements and regulations The union
Human Resource Management Program
HRM Activities People
Results
Planning Employees Job analysis
- Abilities Staff Recruitment and
selection - Motivations Performance Perf
ormance evaluation Career planning and
development keep the Benefits and services
Scope of activities employee Atten
dance Discipline - Requirements Satisfac
tion Labor relations - Compensation Other
s
Internal Environmental influences Organizational
procedures Rules of
organization Strategy Work
group
7
What is HRM all about? 15.
  • Results can be influenced by the HRM
    activities. A significant reason for the eventual
    success of any HRM activity is that the
    organizations employees are the best qualified
    and are performing jobs that suit their needs,
    skills, and abilities. Having the right staff
    means the future of the company. The goal is to
    make the staff think, feel and behave positively
    toward work and the place of work.
    Satisfaction. Good reputation makes the company
    easier to recruit new employees.

8
What is HRM all about? 15.
  • There are other factors which could be
    important for the organization, such as safety
    and health, stress handling, etc.
  • By studying the diagnostic model you should
    see that in order to work effectively, a number
    of HRM activities must be efficiently practiced.
    E.g. to encourage individuals to use their
    abilities it may not be sufficient to only have
    a properly analyzed job. A sound performance
    evaluation, equitable benefits and services, and
    an attractive work schedule may also be needed.

9
What is HRM all about? 15.
  • HRM activities are all related to each other and
    have a combined effect on people. The objectives
    of the HRM functions must be accomplished in
    order for the organization to remain competitive
    and to survive in the environment.
  • Employees Scope of activities the basic
    function of the HRM activity is to create harmony
    between employees and scope of activities.

10
What is HRM all about? 15.
  • Some differences between employee performance
    affecting HRM programs are due to the differences
    in abilities (mechanical, motor coordination,
    mental or creative skills) and motivation toward
    work and the place of work (working hard, being
    on time). Generally it is said that the
    performance of an organization is brought about
    by the abilities and motivation of the employees.
  • Each position has general requirements eg.
    level of education, and special requirements like
    experience on a special field. Requirements need
    to be rewarded with competitive salary and other
    benefits, that motivate the employee.

11
What is HRM all about? 15.
  • HRM Activities
  • -Planning Two steps 1. To make a forecast,
    based on the companys business strategy needs,
    about the quantity and quality of the human
    resources 2. After the environmental forecast,
    define the right tasks
  • -Job analysis The process of defining a job in
    terms of tasks or behaviors and specifying the
    education, training, and responsibilities needed
    to perform the task successfully

12
What is HRM all about? 15.
  • -Recruitment and selection The goal is to find
    the right person for the right task.
  • Sources of recruits two sources of applicants
    can be used internal ( present employees), and
    external (those not presently affiliated with the
    organization). External recruitment methods
    tests, interviews.
  • -Performance evaluation is a system set up by the
    organization to regularly and systematically
    evaluate employee performance.

13
What is HRM all about? 15.
  • Career planning and development internal and
    external trainings help the employees to reach
    their dream positions
  • Benefits and services are a part of the rewards
    of employment that reinforce loyal service to the
    employer. Major benefits and service programs
    include payment for time not worked, insurance,
    pension funds and services

14
What is HRM all about? 15.
  • Labor relations the continuous relationship
    between a defined group of employees (represented
    by a union or association) and an employer. The
    relationship includes the negotiation of a
    written contract concerning payment, working
    hours and other conditions of employment.

15
What is HRM all about? 15.
  • Internal environmental influences involve
    characteristics and factors that are found within
    the organization.
  • Organizational procedures how the company will
    change its activities / the human
    resources / training
  • Rules of organization organizational structures
  • (centralized, decentralized) coordination of
    the human resources and the scope of activities

16
What is HRM all about? 15.
  • Strategy indicates what an organizations key
    executives hope to accomplish in the long run.
  • (Human strategy!)
  • Work group labor relations
  • - External environmental influences involve
    characteristics and factors that are found
    external to the organization.
  • Economic Conditions the general procedures of
    macro economy influence the financial stability
    of the micro organizations. Also influence the
    human resources policy.

17
What is HRM all about? 15.
  • ( good economical conditions more benefits
    for the employees, poor economical conditions
    no benefits for the employees)
  • The labor market the supply and demand
    situations influence the HRM activities.
  • Government requirements and regulations the
    government regulates and influences some aspects
    of personnel more directly than others
    (employees and employers rights). Hungary Code
    of Labour.

18
What is HRM all about? 15.
  • The union the presence of a union affects most
    aspects of HRM- recruiting, selection,
    performance evaluation, promotion, compensation,
    and benefits among others.

19
Job Analysis and Design 16.
  • The goal, the methods and the results of the job
    analysis
  • 1. a. Definitions
  • Job the basic element of an organization.
  • In a narrow sense consists of duties performed
    by an individual
  • In a broad sense /out of duties/
    responsibilities, relations, the place of work
    and the policy

20
Job Analysis and Design 16.
  • Job analysis the process of defining a job in
    terms of tasks or behaviors and specifying the
    education, training, and responsibilities needed
    to perform the job successfully.
  • The job analysis process /6/
  • Examine the total organization and the fit of
    each job
  • Determine how job analysis information will be
    used

21
Job Analysis and Design 16.
  • 3. Select jobs to be analyzed
  • 4. Collect data by using acceptable job analysis
    techniques
  • 5. Prepare job description
  • 6. Prepare job specification

22
Job Analysis and Design 16.
  • 1.b. Job analysis methods of data collection
  • 2 main groups
  • Observation direct is used for job that
    require manual, standardized, and short-job cycle
    activities. The job analyst must observe a
    representative sample of individuals performing
    these jobs
  • Functional job analysis
  • - based on observation
  • - focuses on the purpose of the job and the
    tasks within the organization

23
Job Analysis and Design 16.
  • - jobs are concerned with data, people and
    things (quantitatively rated!)
  • - mental resources are used to describe data
    interpersonal resources are used with people
    physical resources are applied to people
  • Workday analysis
  • - based on observation but not constantly
  • - sampling method
  • - focuses on the workflow, and its elements
  • - similar to the task inventory,
  • - professional analyst needed!

24
Job Analysis and Design 16.
  • II.
  • Job Incumbent Diary/Log
  • - its a recording by job incumbents of job
    duties, frequency of the duties and when the
    duties were accomplished
  • - this technique requires the job incumbent to
    keep a diary/log on a daily basis
  • - comparisons on a daily, weekly or monthly
    basis can be made

25
Job Analysis and Design 16.
  • the diary/log is useful when attempting to
    analyze jobs that are difficult to observe, such
    as those performed by engineers, scientists and
    senior executives
  • Questionnaires
  • - the least costly method for collecting
    information

26
Job Analysis and Design 16.
  • It is an effective way to collect a large amount
    of information in a short period of time
  • It includes specific, mainly standardized,
    questions about the job, job requirements,
    working conditions and equipment
  • The should be short and simple
  • Explain what the is being used for
  • Test the before using it
  • Disadvantage no time for customized questions,
    the result can be false

27
Job Analysis and Design 16.
  • Task inventory a coordinated and aggregated
    series of work elements to produce an output
  • It is easy to prepare, if we have a good
    questionnaire
  • Fast evaluation by computers
  • Results can be used job evaluation, training
    plans
  • Disadvantage takes a long time to make an
    inventory about the tasks

28
Job Analysis and Design 16.
  • Interview
  • - the most widely used job analysis data
    collection technique
  • - they permit the job analyst to talk face to
    face with job incumbents
  • - the job incumbent can ask questions of the job
    analyst feedback!
  • - usually a structured set of questions will be
    used in interviews
  • - major problem inaccurate information may be
    collected

29
Job Analysis and Design 16.
  • 2. Job design
  • Def. is the procedure that identifies the
    tasks and functions of the job
  • Methods
  • Specialization complex work procedures can be
    divided into small parts, that do not require
    specialized knowledge and can be easily described
  • -Problems high fluctuation, dissatisfaction at
    the workplace (monotonity!)

30
Job Analysis and Design 16.
  • Job Enlargement a group of two or more jobs that
    have similar job duties
  • - reverse of the specialization
  • - tried to reduce monotonity was not
    successful
  • Rotation within certain timeframes the employee
    has to change his/her job
  • reduce monotonity, BUT!
  • do not increase efficiency

31
Job Analysis and Design 16.
  • Job Enrichment a method of designing a job so
    that employees can satisfy needs while performing
    the job
  • Key job core dimensions
  • Skill variety
  • Task identity
  • Task significance
  • Autonomy
  • Feedback

32
Job Analysis and Design 16.
  • 3. Job evaluations methods
  • Def. is the formal process by which the
    relative worth of various jobs in the
    organization is determined for pay purposes.
  • 3.1. Global comparison methods
  • Ranking the system used primarily in smaller,
    simpler organizations. Instead of analyzing the
    full complexity of jobs by evaluating part jobs,
    the job-ranking method has the evaluator rank
    order whole jobs from the simplest to the most
    challenging

33
Job Analysis and Design 16.
  • Classification classification or grading system
    groups a set of jobs together into a grade
    classification. Then these sets of jobs are
    ranked in levels of difficulty or sophistication
  • 3.2. Factor comparison methods
  • Point system it is the most frequently used
    because it is more sophisticated than ranking and
    classification systems, but it is relatively easy
    to use. The point system requires evaluators to
    quantify the value of the elements of a job.

34
Job Analysis and Design 16.
  • On the basis of the job descriptions or
    interviews with job occupants, points are
    assigned to the degree of various compensable
    factors. An advantage of the point system is that
    it can be easily interpreted and explained to the
    employees. On the other hand, it is
    time-consuming process to develop a point system.
  • Factor comparison it permits the job evaluation
    process to be done on a factor by factor basis.
    It is differs from the point method in that jobs
    are evaluated or compared against a benchmark
    of key points.

35
Job Analysis and Design 16.
  • Five universal job factors used to compare jobs
    are
  • Responsibilities the money, human resource,
    records and supervisor responsibilities of the
    job
  • Skills
  • Physical efforts sitting, standing, lifting,
    etc.
  • Mental efforts the intelligence, problem
    solving, reasoning, etc.
  • Working conditions the environmental factors
    such as noise, ventilation, hours, heat, etc.

36
Job Analysis and Design 16.
  • The results of the 4 job evaluation methods can
    be used at the HRM activities such as planning,
    career planning, benefits and service programs.

37
Human Resource Planning 17.
  • Strategy and policy within the framework for
    management action
  • Mission What is the organization for? Where is
    it going? It is general and visionary.
  • Strategy The overriding mission is then
    continuously implemented by developing a
    programme of initiatives to define and achieve
    the organizations objectives
  • Policy The overall mission and strategy are
    guided by a series of policies to channel
    decision and action, shaping the organization and
    providing the direction that is needed


38
Human Resource Planning 17.
  • Procedures procedures are more familiar to
    personnel managers than to most management
    specialists as they form the substance of much
    employee relations activity, but in our action
    framework they have the more general meaning of
    being the drills that implement the policy, so
    that a policy decision to advertise all vacancies
    within the organization before external
    advertising begins is implemented by a procedure
    to specify who does what, in what order, when and
    with what authorization, or other trigger to
    action

39
Human Resource Planning 17.
  • Planning Strategy, policy and procedures can all
    be coordinated and moved into action by planning.
    Not only does each stage benefit from planning,
    but a planning approach can ensure that all three
    are thought through and put into operation
    together
  • Practice The final element is what actually
    happens. No organization has a procedure for
    everything, and no procedure is so comprehensive
    as to rule out the need for interpretation and
    judgment.

40
Human Resource Planning 17.
  • Practice is a mixture of implemented procedures ,
    ad hoc decisions, reaction to policy and the ebb
    and flow of interaction between the organization
    and its environment. The effectiveness of a
    policy can only be determined by the practice
    that ensues.

41
Human Resource Planning 17.
Policy

Procedures
Strategy
Mission Practice
Planning

42
Human Resource Planning 17.
  • What is human resource strategy? A part of the
    organizational strategy. Human resource strategy
    involves a central philosophy of the way that
    people in the organization are managed and the
    translation of this into personnel policies and
    practices.
  • Elements
  • 1. Putting together the goals of human resource
    strategy ( quantity-quality needs)
  • 2. Working out the action plans

43
Human Resource Planning 17.
  • 3. Defining the activities (replacement, career
    planning, trainings) which are needed for the
    chosen strategy, and the way of the controlling
    methods
  • Human policy is a framework within which other
    people operate using their own discretion and
    making their own decision. Human policy is
    declared! Why managers try to use statements?
  • 1. Clarification
  • 2. Reducing dependence on individuals
  • 3. Producing consistent management behaviour

44
Human Resource Planning 17.
  • 4. Knowing where we stand
  • 5. Responding to legal and other external
    pressure
  • As a policy is as good as the practice it
    produces!
  • To develop human strategy the methods of business
    strategy is used. Eg. brainstorming, patterning,
    SWOT, STEP analyses

45
Human Resource Planning 17.
  • The content of the strategical human resource
    planning
  • Strategic management decisions
    Strategic HR decisions HR planning

Investment planning What are the goals of HR? How can HRM contribute to reach the companys goals? Define the HR for the future based on the goals of the company
Organizational, market technological, planning to change Where are we now? What are we doing at the moment to reach the companys goals? Focus on the Human resource supply forecast
How to change? What kind of activities should be programmed? Action plans Where do we want to be? How can we get there? Solve the problems which were caused by the difference between HR supply and demand
When and how can we change the programme What did we do? Results What did we do? Results
46
Human Resource Planning 17.
  • 2. a. Types of staff number requirements
  • If adequate or shortage If surplus
  • Basic staff number requirement - Layoff
  • Reserve staff number requirement - Retirement
  • --------------------------------------------
  • Total staff number requirement
  • - Shortage overtime, recruitment

47
Human Resource Planning 17.
  • 2.b Influencing factors
  • 1. Task Identification the complexity of the
    job structure type of service or product
    scheduling of the tasks, contribution
    proportions.
  • 2. Work process the level of the practice
    (routine), cooperation with other systems
  • 3. Technology machines, tools
  • 4. The person qualification, performance of the
    coworkers, job specification
  • 5. The environment companys targets, rules,
    development tendencies, worktime

48
Human Resource Planning 17.
  • 3. Employment forecasting techniques
  • Determining techniques employees have to
    accomplish certain tasks within a certain time
    frame
  • 1.a. Analytic requirements determination
  • - Index number technique we match the volume
    of the tasks to the time needed for execution
    (objective)
  • - Workplace technique it is not dependant of
    the volume of the tasks set plan for scope of
    activities

49
Human Resource Planning 17.
  • 1.b. Summing requirements determination
  • - Plan for scope of activities civil service
    area set plan for scope of activities for
    different periods of time

50
Human Resource Planning 17.
  • 2. Stochastical techniques based on a
    mathematical procedure in which predictions of
    the dependent variables are made through
    knowledge factors known as independent variables.
    Results must always be completed by forecasts!
    Types - Regression analysis,- Correlation
    analysis, - Exponential finishing
  • Problems past staff number records are often
    incorrectly regarded as number requirement
    dataChanges in production are often mistaken for
    changes in work volumeThe method requires too
    many figures from the past years

51
Human Resource Planning 17.
  • 3. Econometrical technique we examine statistic
    figures from the economy to be able to forecast
    the development in the future (use of computers).
    This technique is suitable to make medium and
    long term forecasts.
  • 4. Simulation techniques we model different
    kinds of systems with a set of different
    variables. (e.g. standing in line)

52
Human Resource Planning 17.
  • 5. Estimate techniques
  • 5.a. Simple estimate technique the area manager
    will forecast the employment needs based on
    his/her decision, the result is based on the
    managers judgment (subjective),
  • 5.b. Expert-estimate technique an expert will
    forecast the employment needs primarily based on
    his/her decision, or expert group!
  • -Delphi techniques intensive questioning of
    each expert, through a series of questionnaires
    to obtain data that can be used to make a
    reliable forecast

53
Human Resource Planning 17.
  • 6. Creating new jobs if the volume of the task,
    and the certain time frame are not precisely
    outlined
  • 6.a. Task analysis
  • - make a list of tasks
  • - structure the tasks
  • 6.b. Task synthesis
  • - arrange the tasks according to quantity and
    quality
  • Define the scope of activities for executives and
    managers

54
Human Resource Planning 17.
  • 6.c. Jobs independent of staff number
  • - In cases none of the above is applicable a)
    the number of employees are determined by
    business policy rather than actual need b) only
    one person is needed

55
Selection 18.
  • Goals, criteria, problems
  • Selection is the process to choose the best
    available person or persons from a list of
    applicants, considering current market conditions
  • This definition emphasizes the effectiveness of
    selection, BUT! decisions taken to chose from the
    selection must also be efficient. The secondary
    purpose of selecting is to improve the proportion
    of successful employees chosen from the applicant
    list at the least expense.

56
Selection 18.
  • The basic objective of selection is to obtain the
    employees most likely to meet the organizations
    standards of performance. The employees
    satisfaction and skills improvement prospects are
    also sought in this regard.
  • Selection criteria it will be difficult to
    select the most appropriate procedure and
    approach, and it will be difficult to realize the
    selection process. Selection criteria are
    normally presented in the form of a person
    specification representing the ideal candidate.
    There is a wide range of procedures for this
    purpose.

57
Selection 18.
  • Lewis (1985) suggests that selection criteria can
    be understood based on the following 3 aspects
  • Organizational criteria are those attributes
    that an organization considers valuable in its
    employees and that affect judgment about a
    candidates potential to be successful within an
    organization ( e.g. flexibility)
  • Functional/department criteria between the
    generality of organizational criteria and the
    preciseness of job criteria there are
    departmental criteria


58
Selection 18.
  • 3. Individual job criteria contained in job
    descriptions and person specifications are
    derived from the process of job analysis

59
Selection 18.
  • 2. Choosing selection methods Testing
  • Selection methods application forms, resumé,
    references, tests, interviews
  • Tests are to support selection decisions.
    Questions have been raised as to relevance of the
    tests to the job applied for and the possibility
    of unfair discrimination and bias.
  • Critical features of test use
  • Reliability of a test is the degree to which the
    test measures consistently whatever it is
    intended to measure

60
Selection 18.
  • Use and interpretation tests need to be used
    and interpreted by trained or qualified testers.
  • Context of test test scores need to be
    evaluated in the context of other information
    about individuals
  • Types of tests
  • 1. Aptitude tests these are tests that measure
    specific abilities or aptitudes, such as spatial
    abilities, perceptual abilities, verbal ability,
    numerical ability, motor ability ( manual
    dexterity), and so on. There is some debate over
    the way that general intelligence and special
    abilities are related

61
Selection 18.
  • 1.a. Special aptitude tests measure an
    individuals potential, attainment or
    achievement, tests measure skills that have been
    already required
  • 2. Intelligence tests sometimes called mental
    ability tests, are designed to give an indication
    of overall mental capacity. A variety of
    questions are included in such tests, including
    vocabulary, analogies, similarities, opposites,
    arithmetic, number extension and general
    information.

62
Selection 18.
  • 3. On the job test consist of the applicants
    doing a practical task, or mechanical test, or
    simulation
  • 4. Personality tests the least reliable of the
    employment tests are those instruments that
    attempt to measure a persons personality or
    temperament. The tests based on the persons
    honesty and reliability. Psychiatrists needed for
    the tests! The problem with the use of
    personality tests is that they rely on an
    individuals willingness to be honest, as
    socially acceptable answer or the one best in
    terms of the job are often easy to pick out.

63
Selection 18.
  • 3. The interview
  • An interview is a goal oriented interpersonal
    communication between an interviewer and an
    interviewee
  • Employment selection interviews eg. provide
    general information to potential applicants for a
    specific job opening, determine whether a
    particular applicant is the most suitable
    candidate for the job

64
Selection 18.
  • Interview strategy
  • 1. Frank and friendly strategy here the
    interviewer is concerned to establish and
    maintain the rapport. This is done partly in the
    belief that if interviewees do not feel
    threatened, and are relaxed, they will be more
    forthcoming in the information that they offer.
    The potential advantage that the interviewees
    will leave with a favorable impression of the
    company.

65
Selection 18.
  • 2. Problem-solving strategy a variation of the
    frank and friendly strategy is the
    problem-solving approach. It is the method of
    presenting the candidate with a hypothetical
    problem and evaluating his or her answer. These
    are sometimes called situational interviews. The
    questions asked are derived from the job
    description and candidates are required to
    imagine themselves as the job holder and describe
    what they would do in a variety of hypothetical
    situations. This method is most applicable to
    testing elementary knowledge.

66
Selection 18.
  • 3. Stress strategy in the stress approach the
    interviewer become aggressive, disparages the
    candidates, puts them on the defensive or
    disconcerts them by strange behaviour. The idea
    was used by some business organizations on the
    premise that executive life was so stressful, so
    a simulation of the stress would determine
    whether or not the candidate could cope. The
    advantage of the method is that it may
    demonstrate a necessary strength or a
    disqualifying weakness that would not be apparent
    through other methods.

67
Selection 18.
  • The disadvantages are that evaluating the
    behaviour under stress is problematical, and
    those who are not selected will think badly of
    the employer.
  • Number of interviews and interviewers
  • The decision about the number of the
    interviewers are based on the traditions, and the
    chosen strategy.

68
Selection 18.
  • 1. The individual interview gives the greatest
    chance of establishing rapport, developing mutual
    trust and the most efficient deployment of time
    in the face-to-face encounter, as each
    participant has to compete with only one other
    speaker. The disadvantages lie in the dependence
    the organization places on the judgment of one of
    its representatives, and the ritual element is
    largely missing. The individual interview is very
    popular in the selection of blue-collar staff.

69
Selection 18.
  • 2. Group interview two or more interviewers.
  • a. Two interviewers are still able to establish
    a friendly atmosphere, but if there are more
    than two
  • b. Panel interview this method has the
    specious appeal of sharing judgment and may
    appear to be a way of saving time in
    interviewing as all panel members are operating
    at once. They are not having a conversation with
    the candidates, they are sitting in judgment
    upon them and assessing the evidence they are
    able to present in response to their requests

70
Selection 18.
  • The selection interview sequence
  • 1. Preparation we assume that the preliminaries
    of job analysis, recruitment and short listing
    are complete and the interview is now to take
    place. The first step in preparation is for the
    interviewers to brief themselves. They will
    collect and study a job description or similar
    details of the post to be filled, a personal
    specification or statement of required
    competencies and the application forms or CV of
    the candidates. If there are several people to be
    interviewed the interview timetable needs greater
    planning than it usually receives.

71
Selection 18.
  • 2. Interview structure
  • Stage Objectives Activities
  • Opening To put the candidate at Greet candidate
    by name
  • easy, develop rapport Introduce yourself
  • and set the scene Explain interview purpose
  • Outline how purpose will be achieved
  • Obtain candidate assent to outline
  • Middle To collect provide information Asking
    questions within the
  • structure that makes sense to
  • the candidate, such as biographical,
    areas of the application form, or
    competencies identified for the job
    Listening
  • Answering questions
  • Closing To close the interview and Summarize
    interview, Check confirm future
    action candidate has no more questions
  • Indicate what happen next and when

72
Performance evaluation - 19.
  • Performance evaluation is a system set up by the
    organization to regularly and systematically
    evaluate employee performance
  • Performance evaluation serves several purposes
  • - Development purposes it can determine which
    employees need more training
  • - Reward purposes it helps the organization
    decide who should receive a raise and promotion

73
Performance evaluation -19.
  • - Motivational purposes the presence of an
    evaluation program has a motivational effect it
    encourages initiatives, develops a sense of
    responsibility, and stimulates effort to perform
    better
  • - Legal compliance it serves as a legally
    defensible reason for making promotion, transfer,
    reward, and discharge decision
  • - Personnel and employment planning purposes it
    serves as a valuable input to skills inventories
    and personnel planning

74
Performance evaluation -19.
  • - Compensation it provides information that can
    be used to determine what to pay and what will
    serve as an equitable monetary package
  • - Communications purposes evaluation is a basis
    for an ongoing discussion between superior and
    subordinate about job related matters. Through
    interaction, the parties get to know each other
    better
  • - HRM research purposes it can be used to
    validate selection tools, such as a test program

75
Performance evaluation -19.
  • There are further purposes, such as
  • - According to Fletcher Williams
  • 1. Evaluation of employees work
  • 2. Evaluation of production in order to advance
    improvement
  • According to Randell
  • 1. Salary and wage adjustments
  • 2. Promotion consideration
  • 3. Improvement of performances

76
Performance evaluation -19.
  • Performance evaluation types

Judge Developer
Past Future
Objective Performance increase with reward Performance increase with training
Method Classify, grade Objective, career planning
Supervisor Judges, criticizes Gives advice
Subordinate Listen, reacts, defenses Active participant
77
Performance evaluation -19.
  • What is appraised?
  • Personality Behaviour/Performance
    Achievement of goals
  • Knowledge of the job Accomplishment Turnover
  • Physical force Following orders Output
  • Eyes-hand coordination Reporting
    problems Product quality
  • Qualifications Maintenance Waste
  • Business knowledge To make notes Accidents
  • Ambition Keep the rules Repairs
  • Social skills Work attendance Served
    customers
  • Reliability Submitting proposals Number of
    satisfied
  • Loyalty Non smoking customers
  • Morality
  • Creativity
  • Leadership skills

78
Performance evaluation -19.
  • 2. a. Who contributes to the appraisal process?
  • Immediate manager usually has the most intimate
    knowledge of the tasks that an individual
    carrying out and how well they have been done. (
    annual appraisal)
  • Managers manager can be involved in the
    appraisal process in one of two different ways.
    First, they may be called upon to countersign the
    managers appraisal of the employee in order to
    give a seal of approval to indicate that the
    process has been fairly and properly carried out.
    Second, they make the evaluation personally.

79
Performance evaluation -19.
  • 3. Member of the HR department this happens
    when there is no logical ongoing immediate
    manager.
  • 4. Self-appraisal there is a little doubt that
    people are capable of rating themselves. When
    employees were asked to compare themselves with
    others they tended to overrate themselves
    however, when individuals prepared
    self-appraisals for appraisal interviews they
    were more modest

80
Performance evaluation -19.
  • 5.a. Appraisal by subordinates is a less usual
    approach. It is more limited in its value, as
    subordinates are only acquainted with certain
    aspects of their managers work
  • 5.b. Appraisal by peers peer ratings are both
    acceptably reliable and valid and have the
    advantage that peers have a more comprehensive
    view of the appraisees job performance. They
    note the problem, though, that peers may be
    unwilling to appraise each other as can be seen
    as grassing on each other.

81
Performance evaluation -19.
  • 6. Assessment centers can be used in the
    appraisal of potential supervisors and managers.
    The advantage of assessment centers for this
    purpose is that ratings of potential can be
    assessed on the basis of factors other than
    current performance. Tests, group exercises and
    interviews are used

82
Performance evaluation -19.
  • 2.b. The methods
  • Appraisal systems can measure a variety of
    things. They are sometimes designed to measure
    personality, sometimes behaviour or performance,
    and sometimes achievement of goals. These areas
    may be measured either qualitatively or
    quantitively.
  • 1. Qualitative appraisal often involves the
    writing of an unstructured narrative on the
    general performance of the appraisee. The problem
    is that they may leave important areas
    unappraised, and that they are not suitable for
    comparison purposes

83
Performance evaluation -19.
  • 2. Quantitative appraisal when they are measured
    quantitively some form of scale is used, often
    comprising five categories of measurement from
    excellent, or always exceeds requirements at
    one end to inadequate at the other with the
    mid-point beeing seen as acceptable.
  • 3. Avoidance of personality measures much
    traditional appraisal was based on measures of
    personality traits that were felt to be important
    to the job. These included traits such as
    enthusiasm, drive, application and other traits
    such as intelligence. One difficulty

84
Performance evaluation -19.
  • with these is that everyone defines them
    differently, and that traits that are used are
    not always mutually exclusive. Rates, therefore,
    are often unsure of what they are rating.
  • 4. a. Behaviourally Anchored Rating Scales
    (BARS). The BARS approach relies on the use of
    critical incidents to serve as anchor statements
    on a scale. A BARS usually contains the following
    features 1. Six to 10 performance dimensions are
    identified and defined by raters and rates 2. The
    dimensions are anchored with and critical
    incidents

85
Performance evaluation -19.
  • 3. Each rate is then rated on the dimensions
    4. Ratings are fed back using the terms
    displayed on the form
  • 4.b. Behavioural Observation Scales (BOS) uses
    critical incident technique to identify a series
    of behaviours that cover the domain of the job.
  • 5. Meeting objectives is to use to set job
    objectives for the coming year and, a year later
    to measure the extent to which these objectives
    have been met.

86
Performance evaluation -19.
  • 6. Development of appraisal criteria this is
    include the use of the critical incident
    techniques to identify particularly difficult
    problems at work, content analysis of working
    documents and performance questionnaires whereby
    managers and potential appraisees identify (
    anonymously) what characterizes the most
    effective job holder and the least effective job
    holder.
  • 7. Evaluation based on job analysisThe
    comparison of the actual performance and the
    initial job requirements. Used in small companies
    with no need/possibility of complex evaluation
    procedures.

87
Performance evaluation -19.
  • The appraisel interview provides job related
    feedback to employees open communication between
    supervisor and subordinate, over viewing formal
    goals- establishing future goals, feedback to the
    employees regarding career opportunities
  • Structure
  • 1. Purpose and rapport agree purpose with
    appraisee, agree structure for meeting, check
    that pre-work is done

88
Performance evaluation -19.
  • 2. Factual Review review of known facts about
    performance in previous period. Appraiser
    reinforcement
  • 3. Apraisee views appraisee asked to comment on
    performance over the last year. What has gone
    well and what has gone less wee what could be
    improved what they liked what they disliked
    possible new objectives
  • 4. Appraiser views appraiser adds own
    perspective, asks questions and disagrees, as
    appropriate, with what appraisee has said

89
Performance evaluation -19.
  • 5. Problem-solving discussion of any
    differences and how they can be resolved
  • 6. Objective setting agreeing what action
    should be taken, and by whom
  • 3 types of evaluation interviews
  • 1. Tell and sell
  • -role of interviewer Judge
  • - objective to communicate evaluation, and
    to persuade employee to improve
  • - assumptions employee desires to correct
    weaknesses if he knows them

90
Performance evaluation -19.
  • 2. Tell and listen
  • -role of interviewer Judge
  • - objective to communicate evaluation, and
    to release defensive feelings
  • - assumptions people will change if defensive
    feelings are removed
  • 3. Problem solving
  • -role of interviewer Helper
  • - objective to stimulate growth and
    development in employee
  • - assumptions discussing job problems leads
    to improved performance

91
Performance evaluation -19.
  • 3. Key to a successful evaluation system
  • 1. Clear objectives what are the goals of the
    evaluation? The employees have to have a clear
    picture about the goals!
  • 2. Commitment of the management management
    should participate! Evaluation forms should
    remain at the departments!
  • 3. Openness, participation the system should be
    open to providing more information about the
    employee him/herself, so the employee can accept
    these decisions easier.

92
Performance evaluation -19.
  • 4.Acceptance of the evaluation criteria the
    involvement of both analysts and testees in the
    identification of evaluation criteria
  • 5. Training analysts need training in how to
    evaluate and how to conduct evaluation interviews
  • 6. Administrative effectiveness form filling
    should be kept at a minimum!
  • 7. Follow-up work plans that are agreed by
    analyst and testee need to be monitored
  • 8. Culture Flexibility the system should go
    along with the organizational culture

93
Labor relations 20.
  • Labor relations
  • Def. is a continuous relationship between a
    defined group of employees ( represented by a
    union or association) and an employer.
  • The relationship includes the negotiation of a
    written contract concerning pay, hours,
    conflicts, and other conditions of employment and
    the interpretation and administration of this
    contract over its period of coverage.

94
Labor relations 20.
  • Primary level labor relations between the social
    partners
  • Secondary level labor relations among the social
    partners and the government

95
Labor relations 20.
  • 2. The basic clash of interests
  • Conflicts between the 2 major parties
  • employer employees labor relations help to
    reduce the contradictions, and try to find a
    solution!
  • Negotiation mutual interest!
  • The employees can represent their interests
  • The employer can accept the strategic cooperation
    of the human resources

96
Labor relations 20.
  • 3. Participation Collective bargaining
  • 3.1. Participation
  • with employees as a collective is governed by
    procedures related to consultation and
    negotiation with trade unions and workers
    representatives.
  • 3 basic principals
  • 1. Autonomy the representative is independent
    of the management and of the electors as well

97
Labor relations 20.
  • 2. Cooperation the representative should have a
    positive approach toward cooperation
  • 3. Confidence the parties have to trust in each
    other to be able to come to a solution
  • Result the employees can influence the operation
    of the organization, and the managements
    decisions as well.

98
Labor relations 20.
  • 3.2. Collective bargaining
  • is a process by which the representatives of
    the organization (the employer) meet and attempt
    to work out the contract with representatives of
    the workers (the employees).
  • The content of
  • 1. Conditions of employment (working hours,
    holidays, trainings, etc.)

99
Labor relations 20.
  • 2. Income bracket ( wage/salary other personal
    allowances)
  • 3. Define the values, norms, principals and
    regulations between the parties
  • Result Collective Agreement
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