Module - 2 Recruitment and Selection Recruitment The process of finding and attracting job candidates who are qualified

d to fill job vacancies. According to EDWIN B FLIPPO, Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. Features of recruitment It is a process It is a positive function It is an important function It is a pervasive function It is a two way process It is a complex job Recruiting goals and Priorities Attract large no. of applicants Attract highly qualified applicants Attract applicants willing to accept offers Fill vacancies quickly Fill vacancies at minimal cost Hire people who perform well Hire people who will stay with the organization Attract large no. of applicants Factors affecting Recruitment ORGANIZATIONAL FACTORS Reputation of the organization Organizational culture Geographical location Channels and methods of advertising Emoluments ENVIRONMENTAL FACTORS Situation in the labour market Demand for manpower Knowledge and skills available Stage of development of industry Recruitment Process Human Resource Planning Identify the human resource requirement Determine the number, levels and criticality of vacancies Choose the resources & methods of recruitment Analyze the cost and time involved Start implementing the recruitment program Evaluate the program Recruitment methods Internal Methods Employee referrals Promotion Transfer Job rotation Recruiting Sources The internal search Organizations that promote from within identify current employees for job openings: by having individuals bid for jobs by using their HR management system

 by utilizing employee referrals The internal search Advantages of promoting from within include good public relations morale building encouragement of ambitious employees and members of protected groups availability of information on existing employee performance cost-savings internal candidates knowledge of the organization the opportunity to develop mid- and top-level managers The internal search Disadvantages include: possible inferiority of internal candidates infighting and morale problems potential inbreeding Employee referrals/recommendations Current employees can be asked to recommend recruits. Advantages include: the employees motivation to make a good recommendation the availability of accurate job information for the recruit Employee referrals tend to be more acceptable applicants, to be more likely to accept an offer and to have a higher survival rate. Employee referrals/recommendations Disadvantages include: the possibility of friendship being confused with job performance the potential for nepotism the potential for adverse impact Merits and Demerits Merits Career development. Less orientation and training. Motivation and morale booster. Reduced time and expenditure. Enhance loyalty of employees. Demerits Lead to inbreeding. Discourages flow of new blood. Choice of selection is restricted. Chances of favouritism are higher. Can affect unity and integrity of the organization. Recruitment methods External Methods Recruitment Advertising Internet recruiting Employment agencies Raiding or poaching Employment exchanges Campus recruiting Walk Ins Job Fairs, TV or Radio ads Recruiting Sources External searches

Advertisements: Must decide type and location of ad, depending on job; decide whether to focus on job (job description) or on applicant (job specification). Three factors influence the response rate: identification of the organization labor market conditions the degree to which specific requirements are listed. Employment agencies: Public or state employment services focus on helping unemployed individuals with lower skill levels to find jobs. Private employment agencies provide more comprehensive services and are perceived to offer positions and applicants of a higher caliber. Fees may be paid by employer, employee or both. Employment agencies: Management consulting, executive search or headhunter firms specialize in executive placement and hard-to-fill positions. Charge employers up to 35% of the first year salary Have nationwide contacts Do thorough investigations of candidates Schools, colleges, and universities: May provide entry-level or experienced workers through their placement services. May also help companies establish cooperative education assignments and internships. Unsolicited applicants : May provide a stockpile of prospective applicants if there are no current openings. Cyberspace Recruiting: Nearly four out of five companies use the Internet to recruit employees. Commercial job-posting services continue to grow.

Merits Large pool of candidates is generated. Allow the organization to bring fresh talent. Requisite skills, education and training. Best selection. Demerits Expensive and time consuming. Motivation and loyalty of existing employees are affected. Induction and socialization may not be smooth. Evaluating recruitment process Why evaluate the recruitment process? Is it attracting the required number of applicants? Are our sources appropriate? Is potential staff being targeted through the recruitment process? How cost effective the process is? How efficient the overall process is? Criterias on which to evaluate Recruitment The number of applicants and the successful placement The cost involved The time taken Suitability of the candidates for the selection process. Advantages Ensures quality hires In improving the system Is the firm providing equal employment opportunities Disadvantage If the firm is looking at only one criterion then the results would be incorrect. Selection

Selection is the process of picking individuals( out of the pool of job applicants) with requisite qualifications & competence to fill jobs in the organization Selection is the process of differentiating between applicants in order to identify & hire those with a greater likelihood of success in a job. Selection of the right applicant, for the right job & at the right time is an important aspect of recruitment & selection procedure in every organization CONFUSION??? RECRUITMENT VS SELECTION Recruitment & selection are the crucial steps of the HR process, but there is a fine distinction between the two steps

Recruitment refer to the process of identifying & encouraging prospective employees to apply for the jobs Recruitment is positive in its approach as it seeks to attract as many candidates as possible where as Selection is concerned with picking up right candidates from the pool of job applicants Selection on the other hand is negative in its application as it seeks to eliminate as many unqualified applicants as possible. Recruitment Recruitment precedes selection. It involves prospecting or searching. It does not result in contract of service. It is comparatively easy Selection Selection succeeds recruitment. It involves comparison and choice of candidates. It leads to a contract of services between the employer and the selected candidate. It is a difficult job. The Selection Process Initial Screening Prospective employees are given necessary information about the job Necessary information is also elicited from the candidates (education, skills, experience, salary expected, etc.) First contact of the individual Saves time and efforts Completing the Application Form: Key Issues Gives a job-performance-related synopsis of what applicants have been doing, their skills and accomplishments. Contents of Application Form Identifying information- Name, address, telephone number, etc. Personal information- age, sex, place of birth, marital status, dependants, etc. Physical characteristics- height, weight, eyesight, etc. Education- academic, technical and professional. Experience- job held, employers, etc. References Miscellaneous- extracurricular activities, hobbies, sports, etc. The Selection Process Completing the Application Form: Key Issues Legal considerations Omit items which are not job-related; e.g., sex, religion, age, national origin, race, color, and disability.

Includes statement giving employer the right to dismiss an employee for falsifying information.

Asks for permission to check work references Completing the Application Form: Key Issues Successful applications Information collected on application forms can be highly predictive of successful job performance. Forms must be validated and continuously reviewed and updated. Data should be verified through background investigations. Advantages Scrutiny of the form helps to weed out undesirable candidates. Helps in formulating questions for interview. Data can be stored for future reference. Selection Tests A test is a sample of an aspect of an individuals behavior, performance and attitude. -- Milton M Blum To measure the differences in abilities, aptitudes, interest and personality traits of individuals. Also called psychological tests. Tests Aptitude Tests Achievement Tests Personality Tests Interest Tests Aptitude or Potential Ability Tests These test measure the latent ability or potential of a candidate to learn a new job or skill. a) Mental or Intelligence Tests (word fluency, memory, reasoning, comprehension) b) Mechanical Aptitude Tests (problem solving ability, technical vocabulary) c) Psycho motor or Skill Tests (motor ability, muscular movement) Achievement or Proficiency Tests Job Knowledge Tests- useful for typists, office workers, mill supervisors, sales persons etc. Work Sample TestsPersonality Tests Pen and paper tests used to judge the psychological make up of a person. Helps in assessing individuals value system, emotional reactions, moods, traits and characteristics. Example- MBTI, TAT, RBT Interest Tests Inventories of a candidates likes and dislikes in relation to work. A well designed questionnaire is used to assess the likes and dislikes

The Selection Process Comprehensive Interviews: Interviews involve a face-to-face meeting with the candidate to probe areas not addressed by the application form or tests. Two purposes: (a) Obtaining information (b) Giving information Kinds of Selection Interview Structured Interview Unstructured Interview In- depth Interview Stress Interview Panel Interview Structured interview Also called directive interview/patterned interview.

 Predetermines the questions to be asked. Ensures uniformity. Facilitates easy comparison. Unstructured interview Also called non-directive/free interview. Purpose is to allow a free discussion on any topic as it emerges. Qualities like analytical skills, presence of mind, motivation are tested. Suffers from lack of uniformity and objectivity. In-depth Interview Information concerning the candidate is discussed in detail. Specialization, motivation, qualification and career plan of the candidates and firms offer on the nature of job, pay, and career opportunities are discussed. More appropriate for executive cadres. Stress interview Candidate is put in uncomfortable situation. To identify the sensitive candidates with low tolerance level. Asking rude questions, criticizing the interviewee, disturbing the candidates with frequent interruptions etc. Panel Interview Applicant is interviewed by more than one interviewer. Interviewers are drawn from different fields. Comprehensive and more reliable in nature. The Selection Process Comprehensive Interviews: Interview Effectiveness Fills the information gap in the personnel selection process. Establish a direct and personal contact. Facilitates two way communication process. Interview Effectiveness Becoming familiar with the information available. Getting ready with an interview plan. Creating a supportive environment. Conducting the interview. Ending the interview. Reviewing the performance. Background Investigation: Verify information from the application form Typical information verified includes: former employers previous job performance education legal status to work criminal records One-third of all applicants exaggerate their backgrounds or experiences. A good predictor of future behavior is an individuals past behavior. Background Investigation Methods: Internal investigation: checks former employers, personal references and possibly credit sources. External investigation: Uses a reference-checking firm which may obtain more information, while complying with privacy rights. In the KPMG survey, respondents pointed out four main threat areas on a CV where information is generally fudged: Bloated salaries (23 percent)

Inflated accomplishments (20 percent) Inaccurate dates to hide job-hopping or gaps in employment (17 percent) Exaggerated job titles (12 percent) Background Investigation Documentation, including whom called, questions asked, information obtained/not obtained, is important in case an employers hiring decision is later challenged Conditional Job Offers: Offers of employment made contingent upon successful completion of background check, physical/medical exam, drug test, etc. May only use job-related information to make a hiring decision. Medical/Physical Examination Should be used only to determine if the individual can comply with the essential functions of the job Job Offers Actual hiring decision generally made by the department manager. Candidates not hired deserve the courtesy of prompt notification Now Its Up to the Candidate The candidate now has to decide whether this is the job for him or her. Applicants who are not hired this time will still form an impression about the company. Management should assure the selection process leaves them with a favorable impression of the company. Final Thoughts: Excelling at the Interview Suggestions for making your interviews as an applicant successful are: Do some homework on the company. Get a good nights rest the night before. Dress appropriately. Arrive for the interview a few minutes early. Use a firm handshake. Maintain good eye contact. Take the opportunity to have practice interviews. Thank the interviewer at the end of the interview and follow up with a thank you note.

Performance Management System Module 3 r.prachiagarwal@gmail.com Definition Performance management is a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. - Michael Armstrong According to Flippo, Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job. Introduction Employees generally see performance evaluations as having a direct effect on their work lives. The performance management systems need to include: decisions about who should evaluate performance what format should be used how the results should be utilized Purposes of a Performance Management System Feedback - let employees know how well they have done and allow for employee input. Development identify areas in which employees have deficiencies or weaknesses.

Documentation - to meet legal requirements.

Multiple Purposes of PA
General Purpose Developmental Issues Specific Purpose Identification of individual needs Performance Feedback Determining Transfers and Job Assignments Identification of Individual Strengths Salary Promotion Retention or Termination Identification of poor performers

Administrative Uses/ Decisions

Organizational Maintenance/ Objectives

HR Planning Determining Organization Training Needs Evaluation of Organizational Goal Achievement Evaluation of HR systems
Criteria for Validation Research Documentation for HR Decisions Helping to Meet Legal Requirements

Documentation
6

Appraisal Process
Objectives of Performance Appraisal Use Appraisal Data for Appropriate Purposes Establish Job Expectations Design an Appraisal Program Appraise Performance

Performance Interview

1. Objectives of Appraisal It includes effecting promotions and transfers, assessing training needs, awarding pay increases, etc. Appraisal in future would assume systems orientation from traditional way, which aims at improving the performance instead of assessing it. 2. Establish Job Expectations The second process in job appraisal process which includes informing the employee what is expected from him/her on the job. Normally a discussion is held with the superior to review the major duties contained in the job description. Individuals are not expected to begin the job until they understand what is expected of them.

3. Design Appraisal Program

Formal Vs Informal

What Methods? When To Evaluate? What To Evaluate?

Whose Performa nce? Who Are the Raters? What Problems ?

Appraisal Design

How To Solve?

(a) Who are the Raters? Immediate Supervisor Subordinates Peers Clients Rating Committees Self Appraisal Combination of methods (b) Problems of Rating Performance appraisals are subjected to a wide variety of inaccuracies & biases referred to as rating errors. These errors occurs in raters observations, judgment, & information processing, and can effect assessment results. Types of Rating Errors Leniency or Severity Central Tendency Halo Error Rater Effect Primacy & Recency Effects Perceptual Set Spillover Effect Status Effect Leniency or Severity: Performance appraisal in this case become subjective on the part of the rater. One rater may judge a particular criterion with severity, the other rater may judge the same with leniency. Central Tendency: This occurs when the employees are incorrectly rated near the average or middle of the scale. In such situation it becomes difficult to distinguish between excellent performance & poor performance. This error leads to range restriction Halo Error: This occurs when one aspect of an individuals performance influences the evaluation of entire performance of the individual. Raters Effect: This occur because of factors like favoritism, stereotyping, & hostility. In such cases the rater does take into consideration the actual outcomes or behaviors, but gives judgment on the basis of his/her attitude towards the ratee. Sex, age, race, & friendship biases are examples of this type of error Primacy & Recency Effects: The raters rating is heavily influenced by behavior exhibited by the ratee during the early stages of the review period (primacy) or by outcomes or behavior exhibited by the ratee near the end of the review period (recency). Perceptual Set: This occurs when the raters assessment is influenced by previously held beliefs.

Spillover Effect: Referring to past performance appraisal to unjustifiably influence current rating. Past rating, good or bad, results in similar rating for current period although the demonstrated behavior does not deserve the rating, good or bad. Status Effect: It refers to overrating of employees in higher-level job or jobs held in high esteem, and underrating employees in lower-level job or jobs held in low esteem. (c)What should be Rated? There are six criterion for assessing performance: Quality: The degree to which the performance of an activity conforms with the ideal way of performing that activity. Quantity: The amount produced, expressed in monetary terms, no. of units, or no. of completed activity cycles. Timeliness: The degree to which an activity is completed or a result is produced, at the earliest time desirable from the standpoint of both co-ordinating with the output of others and of maximizing the time available for other activities. Cost Effectiveness: The degree to which the organization's resources is maximized in the sense of getting the highest gain or reduction in loss from each unit or instance of use of a resource. Need for Supervision: The degree to which a job performer can carry out a job function without either having to request supervisory assistance or requiring supervisory intervention to prevent an adverse outcome. Interpersonal Impact: The degree to which a performer promotes feeling of self-esteem, goodwill & cooperation among co-workers & subordinates. (d) Timing of Evaluation How often should the employee be assessed? The general trend is to evaluate once in three months, or six months, or once in a year. Newly hired employees are rated more frequently than older ones. Frequent assessment is better than phased evaluation because in former case we get constant feedback enabling a person to improve his/her performance if there is any deficiency. (e) Past Oriented Method Rating Scale: In this technique for appraisal the performance criterion such as dependability, output, attendance, attitude, co-operation, and like are rated on the scale ranging from excellent to poor. Advantages: adaptability relatively ease use low cost Disadvantages: raters biases Excellent Good Acceptable Fair Poor 5 4 3 2 1 Excellent Initiative Overall output Attendance Co-operation

Checklist: Under this method, a checklist of statements on the traits of the employee and his/her job is prepared in two columns-viz, a Yes column and No column. The rater is just supposed to tick Yes or No in front of those traits being evaluated. When points are allotted to the checklist it becomes a weighted checklist. Advantages: economy ease of administration limited training of rater

standardization Disadvantages: susceptibility to raters biases (especially halo effect) use of personality criterion instead of performance use of improper weights by the HR Department YES Is the employee really interested in the job? Is his or her attendance satisfactory? Does he or she obey orders? Does he or she co-operate with co-workers?

NO

Forced-Choice Method Requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance. 1. ______ a) Works hard _____ b) Works quickly 2. ______ a) Shows initiative _____ b) Is responsive to customers 3. ______ a) Produces poor quality _____ b) Lacks good work habits Advantages: absence of personal bias in rating Disadvantages: statements may not be properly framedthey may not be precisely descriptive of the ratees traits Critical Incident Method Critical incident An unusual event that denotes superior or inferior employee performance in some part of the job The manager keeps a log or diary for each employee throughout the appraisal period and notes specific critical incidents related to how well they perform. Advantages: evaluation is based on actual job behavior the approach has descriptions in support of particular rating of employee it also reduces recency bias chance that subordinates will improve Disadvantages: negative incidences are more noticeable than positive ones Overly close supervision may result Behaviorally Anchored Rating Scales: BARS are rating whose scale points are determined by statements of effective and ineffective behaviors. A rater is expected to indicate which behavior on each scale best describes an employees performance. Behavior Observation Scale (BOS) A performance appraisal that measures the frequency of observed behavior (critical incidents). Preferred over BARS for maintaining objectivity, distinguishing good performers from poor performers, providing feedback, and identifying training needs. Example of a BARS for FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics. Municipal Fire Companies

Sample Items from Behavior Observation Scales

Field Review Method: Appraisal by someone from outside the assessees own department, usually someone from the corporate office or HR office. The outsider reviews employee records and holds interviews with the ratee and his or her superior. It is used for making promotional decision at the managerial level. Drawbacks: An outsider is not usually familiar with conditions in an employees work environment. An outsider review does not have the opportunity to observe employee behavior of performance over a period of time and in a variety of situations. (f) Future Oriented Appraisals This technique is used because of following reasons It is not enough if only the past performance is assessed. Performance in the coming days is equally important. Commonly used techniques: Management by Objectives Psychological Appraisals Assessment Centers 360-Degree Feedback Management By Objectives: 1. Establishment of Goals 2. Setting the performance standard 3. Actual level of job attainment is compared with the goals agreed upon. 4. Establishing new goals and new strategies for goals not previously attained. It is used with managerial personnel and employees who have a fairly wide range of flexibility and self-control in their jobs.

Drawbacks: Not applicable for all jobs in all organizations Psychological Appraisals: When psychologists are used for evaluations, they asses an individuals future potential and not past performance. The appraisal consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. Assessment Centers: An assessment center is a central location where managers may come together to have their participation in job-related exercises evaluated by trained observers. The characteristics assessed in a typical assessment center include assertiveness, persuasive ability, communicating ability, planning and organizational ability, self-confidence, resistance to stress, energy level, decision-making, sensitivity to the feelings of others, administrative ability, creativity and mental alertness. 360-degree Feedback: A systematic collection of performance data on an individual or group, derived from a number of stakeholders (immediate supervisors), team members, customers, peers, and self. It facilitates greater self-development of the employee. It provide formalized communication links between an employee and his or her internal or external customers. Drawbacks: Receiving feedback on performance from multiple sources can be intimidating. The technique take a long time on selecting the rater, designing questionnaires, and analyzing the data. Multiple raters are less adapt at providing a balanced and objective feedback than the supervisors who are sought to be replaced 4. Performance Interview It has 3 goals:

To change behavior of employees whose performance does not meet organizational requirements or their own personal goals. To maintain the behavior of employees who perform in an acceptable manner. To recognize superior performance behaviors so that they will be continued. 5. Use of Appraisal Data Data and information outputs of a performance-appraisal program can critically influence the coveted employeremployee reward opportunities. It could be useful in following areas of HRM: I. Remuneration administration II. Validation of selection programs III. Employee training and development programs IV. Promotion, transfer and lay-off decisions V. Grievance and discipline programs VI. HR planning Creating More Effective Performance Management Systems

Essentials For Effective Performance Appraisal Systems Mutual trust Clear objectives Standardization Training Documentation Feedback and participation Individual differences Post appraisal interview

Training and Development UNIT IV Training and Development Training : It is an attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge. Development: refers to the learning opportunities designed to help employees grow. Difference between T&D Training is a short term process utilising a systematic and organised procedure whereas Development is a long term education process utilising a systematic and organised procedure Difference between T&D Training involves helping an individual learn how to perform his present job satisfactorily Whereas Development involves preparing the individual for a future job and growth of the individual in all respects. Training and Development The need for T& D can be computed as follows: Training and development need = Standard performance - Actual performance.

Training Process
Needs assessment a) Organization support b) Organizational analysis c) Task and KSA analysis d) Person analysis Instructional Objectives Development of criteria Training validity Transfer validity

Selection and design Of instructional programs Training Use of evaluation models

IntraorganisaTional validity
InterorganisaTional validity

Need Assessment Diagnoses present problems and future challenges to be met through training and development. Need assessment occurs at two levels 1. Individual when there is performance deficiency -- focus on anticipated skills of an employee due to change in technology -- job transfer 2. Group changes in the organization's strategy necessitates training of group of employees -- low morale and motivation is diagnosed. Methods used in Training Need Assessment Group Analysis Organizational goals & objectives Skills inventories Exit Interview Customer satisfaction data Individual Analysis Performance appraisal Work sampling Interviews Issues in Needs Assessment Needs assessment, individual or group, should consider several issues: Organizational support when the needs assessment is carefully designed and supported by the organization, disruption is minimized and co-operation is likely to occur. Organizational analysis seeks to examine the goals of the organization. Task and KSA analysis necessary to identify what task are needed on each job and which KSAs are necessary to perform these task Person analysis targets individual employees Benefits of need assessment Trainers may be informed about the broader needs of the trainees Trainers are able to pitch their course inputs closer to the specific needs of the trainees Assessment makes training department more accountable and more clearly linked to other human resource activities. Consequences of Absence of Training Need Assessment

 Loss of Business Constraints on business development High labor turnover Poor- quality applicants Undermining career paths Higher training costs Deriving Instructional Objectives Instructional objectives provide the input for designing the training programme as well as for the measures of success (criteria) that would help assess effectiveness of the training programme. Example: the employee will be able to smile at all customers even when exhausted or ill, unless the customer is irate. Designing Training and Development Programme Vital issues to be addressed: Who participates in the programme? Who are the trainers? What methods and techniques are to be used? What should be the level of training? Where is the programme conducted? Methods and Techniques of Training Training methods are categorized into two groups: 1. On-the-job methods- refers to methods that are applied in the workplace. 2. Off-the-job methods- away from the workplace. Training techniques are the means employed in the training method. Some of the techniques are lectures, case studies, role playing etc. On-the-job Training (OJT) Conducted at the worksite, in context of the job. Experienced worker shows a trainee how to work on the job. On the Job Training Methods Job Rotation: employee moves from job to job at planned intervals. Apprenticeships: a structured process by which people become skilled workers through a combination of classroom instructions and on-the-job-training. On-the-job Training Methods Coaching : here the trainee works directly with a senior or with a person he or she is to replace. Job Instruction Training: many jobs consist of a logical sequence of steps and are best taught step by step. Listing each jobs basic tasks, along with the key point in order to provide step-by-step training for employees. On-the-Job Training Advantages No specific facilities needed Real life situation/not simulated Productivity Trainee establishes relations from start No off-the-job cost Learning can be controlled Disadvantages Risk to machines and increase in scrap Part-time instructor may lack skill in training Lack of time due to pressure of production Psychological pressure before experienced workers Off the Job Training Methods Lecture Discussion

Simulation: a technique that duplicates as nearly as possible the actual conditions that are encountered on job. Role Play Case Study: a written description Vestibule Training: utilises equipment which closely resemble the actual ones used on the job. Audio visual based training: when there is a need to expose trainees to events not easily demonstrable. Business Games Sensitivity Training ( Group Dynamics)-gain insight into own and others behavior Off -the- Job Training ADVANTAGES Relaxed atmosphere,away from home and work, no distractions Specific difficulties are easier to explore Test hypotheses and ideas in low risk environment Improves morale and motivation for self-development DISADVANTAGES Cost of external facilities Difficulty of simulating work problems Resistance of trainees being away from home(lengthy training) Level of Learning There are three basic level: 1. Lowest level- the employee or potential employee must acquire fundamental knowledge. Developing a basic understanding of the field and getting acquainted with concepts and relationships. 2. Goal of the next level is skill development, or acquiring the ability to perform in a particular skill area. 3. Highest level aims at increasing operational efficiency. Involves obtaining additional experience. Conduct of Training At the Job itself. On site but not the job eg: training room in the company Off the site: like college, conference centre. Implementation of the training programme Implementation of training problem beset with certain problems: 1. Availability of trainer. 2. Scheduling training around the present work, without disrupting the regular work. Programme implementation involves: 1. Deciding the location. 2. Scheduling the training programme. 3. Conducting the programme. 4. Monitoring the progress of trainees. Evaluation of the programme Evaluation helps determine the results of the training and development programme. The main objectives are: 1. to determine if the programmes are accomplishing specific training objectives. 2. to determine their cost effectiveness. 3. credibility of training programme is greatly enhanced when it is proved that the organization has benefited tangibly from it. Evaluating Training Effectiveness Training effectiveness is the degree to which trainees are able to learn and apply the knowledge and skills acquired in the training programme. Reaction Learning Behavior Results Techniques of evaluation

One approach towards evaluation is to use experimental (one to receive training) and control (other not to receive training) groups. Another method is use of questionnaire before and after the interview Experimental Exercise Purpose: The purpose of this exercise is to give you practice in developing a training programme for the job of airline reservation clerk for a major airline. Customer contact our airline reservation clerks to obtain flight schedules, price, and itineraries. The reservation clerks look up the requested information on our airlines online flight schedule systems, which are updated continuously. The reservation clerk must deal courteously and expeditiously with the customer, and be able to quickly find alternative flight arrangements in order to provide the customer with the itinerary that fits his or her needs. Alternative flights and prices must be found quickly, so that the customer is not kept waiting, and so that our reservations operations group maintains its efficiency standards. It is often necessary to look under various routings, since there may be a dozen or more alternative routes between the customers starting point and destination. You may assume that we just hired 30 new clerks, and that you must create a 3 days training program. Please produce the requested outline, making sure to be very specific about what you want to teach the new clerks, and what methods and aids you suggest using to train them. Wage and Salary Administration (Compensation Management) UNIT V Introduction Employee compensation is a vital part of human resource management. Wages, salaries and other forms of employee compensation constitute a very large component of operating costs. Human resources are unique and precious for any organization. Survival and growth of an organization is critically linked to the performance and commitment of its workforce. Objectives of Compensation Management To establish a Fair and Equitable Remuneration : There should be internal and external equity in remuneration paid to employees. To attract competent personnel : Attract qualified and hard working people by ensuring an adequate payment for all the jobs. To retain the present employees: By paying at competitive levels, the company can retain its personnel. To improve productivity : Its improves the motivation and morale of employees. To control costs: Through sound wage and salary administration labor and administrative costs can be kept in line with the ability of the company to pay. To improve union management relations : Reduces grievances arising out of employment. To improve public image of the company What Determines How Much You Pay? Prevailing Wages Ability to Pay Cost of Living Productivity Demand for and Supply of Labor Job Requirements Government Laws Principles of Compensation Management Keep in view the interest of the employer and the employees. State clearly in writing to ensure uniform and consistent application. Should be sufficiently flexible or responsive to changes. Employees should know and understand the wage policy. Should be reviewed and revised periodically. Pay is a statement of an employees worth by an employer.

Pay is a perception of worth by an employee. Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment. It consists of 2 parts Direct financial payments Indirect payments The Bases for Compensation Time-based and Performance-based Hourly Work Work paid on an hourly basis. Salary Workers Employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods. Piecework Work paid according to the number of units produced. Sales Commissions
Total Compensation

Direct
Wages / Salaries
Commissions

Indirect
Time Not Worked Vacations Breaks Holidays Insurance Plans Medical Dental Life Security Plans Pensions Employee Services Educational assistance Recreational programs

Bonuses

Gain sharing

Wage Concept Monetary compensation package of employees generally consists of the following components: 1. Basic Pay 2. Allowances 3. Incentives 4. Fringe Benefits/ Prequisities Basic Pay Generally determined through job evaluation. Depends on various factors like demand for and supply of labor, prevailing wage rates, ability to pay of employer. Allowances 1. Dearness allowance: Allowance paid to enable them to face the increasing dearness of essential commodities. Paid to neutralize the effects of inflation. 2. House Rent Allowance: Employers who do not provide living accommodation pay HRA to employees. 3. City Compensatory Allowance: This allowance is generally paid to employees in metros or big cities where cost of lining is comparatively high. Fixed amount per month. 4. Transport Allowance. Fixed amount per month Incentives: Performance linked remuneration. Bonus, Profit sharing, commission on sales. Fringe Benefits: PF, Gratuity, encashment of earned leave, company house, company car, LTC, medical aid, interest free loan, holiday homes, stock options. Minimum Wage- Supreme Courts Direction To provide for sustenance maintenance of the worker and his family.

An employer who can not pay minimum wages has no right to exist. Payment of less than min. wage amounts to forced labour. Capacity to pay is relevant for determination of fair wages, over and above minimum wages. M.W. should also have some provision for childrens education, medical requirements, minimum recreation, provision for old age, marriages etc. Fair Wage The concept was deliberated upon by the Committee on Fair wages in 1948 The lower limit of fair wage is minimum wage and the upper limit is the capacity to pay. Between the two, the actual wage will depend upon the following factors: (i) Productivity of labour (ii) Prevailing rates of wages in the same or similar occupations in the same or neighbouring localities (iii) Place of industry in the economy (iv) National income and its distribution Living Wage It represents a standard of living which provides not only for bare sustenance, but: 1. A decent standard of life consistent with human dignity ( nutritious food, clean water, shelter, clothes, education, transport, etc.) 2. A measure of frugal comforts, amenities and a degree of leisure 3. Protection against ill health (health care) 4. Requirements of essential social needs 5. Some insurance against the more important misfortunes, and risks physical and financial, including old age ( social protection). Its a dynamic concept which aims at steadily improving living standards of working classes ( art 43 of the Constitution) Employers have a moral imperative to pay a living wage to workers Components of Min. Wage-Dr. Aykroyds Formula The standard working class family should be taken to consist of three consumption units for one earner, earnings of women, children and adoloscents should be disregarded. Minimum food requirements should be calculated on the basis of a net intake of 2700 calories for an average adult of moderate activity Components of Min. Wage (contd) Clothing @ 18 yards/ anum.4= 72 yards Housing- minimum rent charged by the govt. in any area for the houses provided under the subsidised industrial housing for low income groups. Fuel, lighting and other miscellaneous items of expenditure should constitute 20% of total minimum wage The Compensation Structure Step 1. The salary survey A survey of the wages paid to employees of other employers in the surveying organizations relevant labor market. Helps maintain internal and external pay equity for employees. Aimed at determining prevailing wage rates. A good salary survey provides specific wage rates for specific jobs. Labor Market The area from which employers obtain certain types of workers. Collecting Survey Data Outside Sources of Data Bureau of Labor Statistics (BLS) National Compensation Survey State and local wage surveys Online survey data

Conducting Employer-initiated Surveys Select key jobs. Determine relevant labor market.

 Select organizations. Decide on information to collect: wages/ benefits/ pay policies. Compile data received. Determine wage structure and benefits to pay. Step 2. Job evaluation A systematic comparison done in order to determine the worth of one job relative to another. Basic principle : Jobs that require greater qualifications, more responsibilities, and more complex job duties should be paid more highly than jobs with lesser requirements. Step 3. Group Similar Jobs into Pay Grades A pay grade is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. Point method: the pay grade consists of jobs falling within a range of points. Ranking method: the grade consists of all jobs that fall within two or three ranks. Classification method: automatically categorizes jobs into classes or grades. Step 4. Price Each Pay Grade Wage Curve

Shows the pay rates currently paid for jobs in each pay grade, relative to the points or rankings assigned to each job or grade by the job evaluation. Shows the relationships between the value of the job as determined by one of the job evaluation methods and the current average pay rates for your grades. Plotting a Wage Curve

Step 5. Fine-tune pay rates It involves developing pay ranges and correcting out of line rates. Developing pay ranges Flexibility in meeting external job market rates Easier for employees to move into higher pay grades Allows for rewarding performance differences and seniority Correcting out-of-line rates Raising underpaid jobs to the minimum of the rate range for their pay grade. Freezing rates or cutting pay rates for overpaid (red circle) jobs to maximum in the pay range for their pay grade. Wage Structure

Legal framework of Wage P.W. Act 1936 M.W. Act 1948 Equal Remuneration Act 1976 Payment of Bonus act 1965 Provident Fund Act 1952 Payment of Gratuity Act, 1972 Employees State Insurance Act 1948 Maternity Benefit Act, 1961 Workmens Compensation Act, 1923 INCENTIVES Hard work pays is the simple philosophy behind wage incentive programmes. Wage incentives are any form of performance-based financial and/or non-financial rewards payable to attract and retain the best talents without any permanent financial commitment for the organization. Objectives of wage incentives To attract and retain efficient employees and induce them to work harder in the job. Enhancing employee motivation. Increasing productivity and performance. Leads to employee satisfaction. Reducing the time and cost of supervision. Types of incentive schemes Micro level plans: 1. Individual based plans 2. Team based plans Macro level Plans 3. Business unit or plant level plans 4. Entire organization level plans INDIVIDUAL BASED PLANS Merit pay: An increase in base pay, normally given once in a year. Once given, it becomes part of the base salary In this method, the organization links a part of the employees wages to their actual performance in comparison with the standards set by it. These standards may be in terms of critical job factors like competency, initiative, attitude, safety records, punctuality etc. Lump sum payments- individual bonus programmes: Given on a one time basis, like, a paid vacation, a complimentary dinner, reward to employees of an airline for on time operation.

Piece work: Incentive based on each unit produced: Straight Piece Work (wage earnings = number of units produced * the piece rate per unit) Piecework with Guaranteed Time Rate: Guaranteed time rate( such as minimum wage), regardless of units produced. 3. 3. Differential piece rate: Reward on the basis of a percent premium over the percentage by which the performance is above the standard. TEAM BASED PLANS Reward to team members, equally, based on group outcomes Some organizations allow teams to decide how its bonus will be distributed within the group. PLANT WIDE INCENTIVES Rewards all workers in a plant or business unit based on the performance of the entire plant/ business unit. Profits and stock prices are organization level plans, and not plant level plans. Key performance indicator for plant level performance is plant or business unit efficiency- normally measured in terms of labour or material cost savings, compared to an earlier period. Management and employee/ union teams normally generate or evaluate cost-saving ideas. Such plans are usually called gain sharing. Is a plant wide pay for performance plan in which a portion of cost-savings is returned to employees as lump sum bonus Appropriate for the manufacturing sector and also service sector, like hospitals. CORPORATE WIDE PLANS Rewards on the basis of the entire organizations performance, like allocation of a portion of the declared profits to employees on an annual or quarterly basis, according to a formula, eg. Bonus. This is known as Profit sharing Companies usually create a profit sharing pool, distributed via a plan, eg. A retirement plan, ESOPsoffered as outright grant or at a favourable price. The right to purchase, at some time in the future, a given no of shares of a company on todays price. The options provide an incentive to go for spectacular results, without risking their own money. They are golden hand cuffs.

1. 2.

FRINGE BENEFITS

Features of Fringe Benefits An employee enjoys them in addition to the salary he/she receives. They are not given for specific jobs performed but to make jobs more attractive. They are not linked to productivity so do not reward performance in any way, criteria used is other than performance. They have an indirect impact on workers efficiency. If impact is direct, it is not a fringe benefit. Types of Fringe Benefits Pay for time not worked Employee security

 Safety and health Welfare and recreation Old age and retirement Flexible Benefits Plans (Cafeteria Plans) & Golden Parachute Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs Flexible Benefit (Cafeteria) Plans Advantages more appreciation of benefits offered better match between benefits and employee preference Disadvantages increased design and administrative costs Thank You

360 Degree Feedback

Definition 360 degree has been defined by ward(1997) as the systematic collection and feedback of performance data on an individual or a group derived from a number of the stakeholders in their performance. Also known as multisource assessment, multirater feedback, multi level feedback. Meaning 360 refers to 360 in a circle.The feedback comes from the subordinates ,peers and managers in the organisational hierarchy as well as self assessment. It is the employee develpoment feedback that comes from all round the employee.

Principle of 360 degree feedback Provides an understanding how the employee is perceived from different perspective Who does the assessment? Yourself Boss Staff

Team members Peers Internal customers External customers Suppliers Friends and family members

Multirater feedback

360 degree feed back cycle Observation : This is a natural and often unconscious process that people use when forming impressions about each other. Briefing : 360-Degree Feedback formalizes the observation process by identifying specific people and asking them to answer particular questions about the participant's performance

Questionnaire: The process involves completion of a questionnaire containing a combination of rated and free text questions. The questionnaire can be electronic or on paper Report Completion : Returned questionnaires are consolidated into a report that contains textual, graphical and numerical feedback for the participant. Feedback : The participant gets their feedback at a facilitated, one - to one interview conducted by a trained facilitator . Reflection: The participant takes time to clarify and reflect on his/her feedback. Sharing feedback with others can also come at this stage. Action Plan : As a result of reflection, the participant produces a plan for how he/she intends to develop and in what behaviors. Changed Behavior : Carrying out the action plan results in changes in certain areas of the participant's behaviors. How it is conducted? Define objectives Decide on recipients Decide who will give the feedback Decide areas of work and behavior Decide method of conducting data Plan an initial implementation program Plan and implement full program Monitor and evaluate 360 degree feedback: Uses Self development and individual counseling Team building Performance management Organization development Identification or developmental needs Potential appraisal and development Evaluation and training Remuneration ADVANTAGES To the Individual Self awareness Assessment competence Confirmed strengths To the Colleagues Improved teamwork The opportunity to give feedback To the Organization Improved performance Cost effective use of development resources Clear focus to individual development Better relationship Some other benefits Individuals get a broader perspective of how they are perceived by others than previously possible. A rounded view of the individuals/ teams/ organizations performance and what the strengths and weaknesses are. Identifying key development areas for the individual, a department and the organization as a whole. Opens up feedback and gives people a more rounded view of performance than they had previously More reliable feedback to senior managers about their performance.

Raised the self-awareness of people managers of how they personally impact upon others positively and negatively. DISADVANTAGES People are not giving frank or honest feedback. People being put under stress in receiving or giving feedback. Lack of action following feedback. Over reliance on technology. Too much bureaucracy. 360 Degree Feedback Process at NIIT IEF (Individual effectiveness feedback) NIIT introduced the formal 360 degree survey in 1995. The primary objectives were to: 1)Provide multiple source feedback as input to enhance interpersonal competence. 2)Promote core NIIT values and attributes among all staff. 3)Foster a non hierarchial culture through multiple role senstivity. FEATURES OF IEF It is based on questionnaire which has five key values and 25 key behavioural attributes on which every NIITian gives or recieves feedback. A feedback team is formed around each NIITian comprising his/her peers , team members, and the supervisor. The questionnaire is administerd once ayear a liitle ahead of the formal annual appraisal. All the filled in survey instruments are collected centrally and analysed. A consolidated scorecard is produced for each individual and given to him/her well in time for discussion with supervisor along with annual appraisal. The system is administered by HR function. The chairman and the directors personally participate and display their own scorecards openly on their office desks and invite inputs for using the feedback to improve themselves. ISSUES The success of the 360 degree feedback at NIIT can be attributed to the following key factors: Absolute top management commitement. User-friendly design,simple form and easy work flow. Effective education , communication and training in support of the system.

CONCLUSION

BIBLIOGRAPHY Performance Management Michael Armstrong and Angela Baron. 360 Degree Feedback- Peter Ward. Performance Management and Appraisal Systems-T.V. Rao. www.wikipedia.com.