Module 7

Definition of corporate social responsibility (CSR)

Movement aimed at encouraging companies to be more aware of the impact of their business on
the rest of society, including their own stakeholders and the environment. [1]
Corporate social responsibility (CSR) is a business approach that contributes to sustainable
development by delivering economic, social and environmental benefits for all stakeholders.

CSR is a concept with many definitions and practices. The way it is understood and implemented
differs greatly for each company and country. Moreover, CSR is a very broad concept that
addresses many and various topics such as human rights, corporate governance, health and
safety, environmental effects, working conditions and contribution to economic development.
Whatever the definition is, the purpose of CSR is to drive change towards sustainability.

Although some companies may achieve remarkable efforts with unique CSR initiatives, it is
difficult to be on the forefront on all aspects of CSR. Considering this, the example below
provides good practices on one aspect of CSR – environmental sustainability.

Green hr
Green HR is the use of HRM policies such a way to promote sustainable use of resources in
business organizations to make eco friendly and promote environmental economical
sustainability practices to keep healthier environment by increasing employee awareness and
commitments on the issues of sustainability.

The HR function can become the driver of environmental sustainability within the
organization by aligning its practices and policies with sustainability goals representing eco
friendly which can contribute to organizational goals. It involves undertaking environment-
friendly HR initiatives resulting in: 1) Greater efficiencies with motivation , and 2) Lower
costs and better employee engagement and retention.

Now a days, there is a growing need for strategic Green HRM – the
integration of environmental management into HRM in the perspective of
the question of environment pollution in the world. HR professionals can
indicate that encouraging employees to be more environmentally friendly
in the workplace is the top practice for their organizations. This means
organizations can encourage their employees to perform activities such
as early morning office time, making double-sided photocopies, powering
down computers after a few minutes of inactivity, using energy efficient
bulbs can be the top environmentally responsible practices in initial stage
of Green HR.
Some of which don't need much cost money to implement, can vary significantly change how
business is conducted. Here are some steps companies can take to start Go Green practice:

1. Power Saving by early morning office startup

2. Conduct an internal environment & energy audit in the organization

3. Conduct eco friendly or Go Green Surveys

4. Go paperless by using apps, software & e-hr

5. Recycle waste

6. Reduce business travel - Teleconference instead of travelling

7. Save water - Monitor sinks and toilets for leaks that waste water

8. Explore opportunities for implementing alternative energy sources

Green HRM policies encourage the sustainable use of resources within business organization
to promote the environmentalism in the process, create improved employee morale,
satisfaction & efficiency by promising stakeholders in competitive market.

What is HRIS?

A HRIS, which is also known as a human resource information system or human resource
management system (HRMS), is basically an intersection of human resources and information
technology through HR software. This allows HR activities and processes to occur electronically.
To put it another way, a HRIS may be viewed as a way, through software, for businesses big and
small to take care of a number of activities, including those related to human resources, accounting,
management, and payroll. A HRIS allows a company to plan its HR costs more effectively, as well as
to manage them and control them without needing to allocate too many resources toward them.

In most situations, a HRIS will also lead to increases in efficiency when it comes to making decisions
in HR. The decisions made should also increase in quality—and as a result, the productivity of both
employees and managers should increase and become more effective.

Solutions offered by HRIS Systems

There are a number of solutions offered to a company that adopts a HRIS. Some of these include
solutions in training, payroll, HR, compliance, and recruiting. The majority of quality HRIS systems
include flexible designs that feature databases that are integrated with a wide range of features
available. Ideally, they will also include the ability to create reports and analyze information quickly
and accurately, in order to make the workforce easier to manage.

What is a Human Resources Audit?

A Human Resources Audit (or HR Audit) is a comprehensive method (or means) to review
current human resources policies, procedures, documentation and systems to identify needs for
improvement and enhancement of the HR function as well as to assess compliance with ever-
changing rules and regulations. An Audit involves systematically reviewing all aspects of human
resources, usually in a checklist fashion.
Sections of review include:

 Hiring and Onboarding

 Benefits
 Compensation
 Performance evaluation process
 Termination process and exit interviews
 Job descriptions
 Form review
 Personnel file review

The purpose of an HR Audit is to recognize strengths and identify any needs for improvement
in the human resources function. A properly executed Audit will reveal problem areas and
provide recommendations and suggestions for the remedy of these problems. Some of the
reasons to conduct such a review include:

 Ensuring the effective utilization of the organization’s human resources

 Reviewing compliance in relation to administration of the organization
 Instilling a sense of confidence in management and the human resources function
 Maintaining or enhancing the organization and the department’s reputation in the
community
 Performing “due diligence” review for shareholders or potential investors/owners
 Establishing a baseline for future improvement for the function
International Human Resource Management (IHRM)
Boxall, P. (1992) defined International Human Resource Management (IHRM) as ‘concerned
with the human resource problems of multinational firms in foreign subsidiaries (such as
expatriate management) or more broadly, with the unfolding HRM issues that are associated
with the various stages of the internationalisation process. (Boxhall, P. 1992).

Mark Mendenhall (2000) sought to be more specific by outlining a number of criteria

relevant to a definition of IHRM:

1. IHRM is concerned with HRM issues that cross national boundaries or are conducted
in locations other than the home country headquarters.
2. IHRM is concerned with the relationships between the HRM activities of
organisations and the foreign environments in which the organisations operate.
3. IHRM includes comparative HRM studies; e.g. differences in how companies in
Japan, Thailand, Austria and Switzerland plan for upgrading of employee skills and so
on.

What IHRM is not

 IHRM does not include studies that are focused on issues outside the traditional
activities inherent in the HRM function.

E.g. leadership style is not IHRM, unless specifically linked to an HRM function; developing
a selection programme to measure and select global leaders would arguably lie within the
domain of organisational behaviour.

 IHRM does not include studies of HRM activities in single countries.

E.g. a study of personnel selection practices in Saudi Arabia, whether undertaken by an
English, German or Canadian researcher, is still a study about domestic HRM in Saudi
Arabia. Though such studies may have interest to those who work in international HRM
issues, they are essentially examples of domestic HRM research.

What is work-life integration?

With the development of technology and our growing reliance on our
devices, creating a strict division between your home and work life is
becoming increasingly difficult.
This means forming an even work-life balance can sometimes feel like an
impossible task. In fact, few of us completely unplug when we go home (or
even go on holiday), resulting in work related duties regularly spilling over
into our personal lives.
So instead of separating the two completely, work-life integration aims
to unify your personal and work life way that complements both areas (as
opposed to them competing with each other).
Example of work-life integration: bringing your dog to work.

Work-life integration examples

 Leaving work early and answering emails from home
 In-office yoga, exercise, and walking clubs
 Bringing your child to work after school
 Being sponsored by your business to take a course in something
you’re passionate about

benefits of work-life integration?

It’s more realistic
A new outlook on work.
It’s a great way to prioritise effectively
 Module 6

Concept of IR:
According to Dale Yoder’, IR is a designation of a whole field of
relationship that exists because of the necessary collaboration of
men and women in the employment processes of Industry”.

Encyclopedia Britannica defined IR more elaborately as “The

concept of industrial relations has been extended to denote the
relations of the state with employers, workers, and other
organisations. The subject, therefore, includes individual relations
and joint consultation between employers and workers at their
places of work, collective relations between employers and trade
unions; and the part played by the State in regulating these
relations”.

Scope of IR:
Based on above definitions of IR, the scope of IR can easily
been delineated as follows:
1. Labour relations, i.e., relations between labour union and
management.

2. Employer-employee relations i.e. relations between management

and employees.

3. The role of various parties’ viz., employers, employees, and state

in maintaining industrial relations.

4. The mechanism of handling conflicts between employers and

employees, in case conflicts arise.

Thus, the objectives of IR are designed to:

1. Establish and foster sound relationship between workers and
management by safeguarding their interests.

2. Avoid industrial conflicts and strikes by developing mutuality

among the interests of concerned parties.

3. Keep, as far as possible, strikes, lockouts and gheraos at bay by

enhancing the economic status of workers.

4. Provide an opportunity to the workers to participate in

management and decision making process.

5. Raise productivity in the organisation to curb the employee

turnover and absenteeism.

6. Avoid unnecessary interference of the government, as far as

possible and practicable, in the matters of relationship between
workers and management.

7. Establish and nurse industrial democracy based on labour

partnership in the sharing of profits and of managerial decisions.

8. Socialise industrial activity by involving the government

participation as an employer.

Management role in ir
Industry management is one of two key players in the realm of industrial relations.
Industrial relations describes the relationship between management (often top-level
management) and employee organizations (like unions).

Top-level management
Top-level management must communicate and negotiate with employee
organizations to avoid strikes, law-suits and protests. This level of management
interacts with employee organizations on a large-scale, as opposed to lower tiers of
management which mostly rely on human resources to conduct employee
interactions.

Low-level management
Low-level (or local) management interacts with employees on an individual basis
(often through a human resources department). All levels of management are
involved in industrial relations, but low-level management has little or no say in big-
picture decisions (employee compensation and benefit alterations).

Managements purpose in industrial relations

In an industrial relations negotiation, management represents the interest of the
company (and shareholders if applicable). Management must work with employees
to develop compensation packages and policies that are acceptable for both
parties.

Problems for management in industrial relations

When the relationship between management and employees sour, management
may be forced to develop a crisis-management plan. If an employee organization
initiates a large-scale strike or protest, management must act quickly (either give-in
to employee demands or find an alternate solution) to avoid crippling profit losses.

Problems for management in industrial relations

When the relationship between management and employees sour, management

may be forced to develop a crisis-management plan. If an employee organization
initiates a large-scale strike or protest, management must act quickly (either give-in
to employee demands or find an alternate solution) to avoid crippling profit losses.

Trade union
Meaning of Trade Union:
A Trade Union has been defined as a continuous association of
workers formed for the purpose of maintaining and improving their
conditions of employment.

Their aim is not merely to fight against the wage-cuts but also to
fight for higher wages. A temporary organisation or a mere strike
committee cannot be considered a trade union. It must be a
continuous association.

Functions of trade union

(i) Fraternal or mutual-help functions; and

(ii) Militant or fighting functions.

The fraternal functions include organisation of indoor and outdoor

games, dramatic clubs, arranging of lectures, running of schools,
hospitals, etc. All these are intended to promote the general welfare
of the working classes through their own efforts.

The militant functions of the unions refer to the struggle that they
make against the employers for getting higher wages or for getting
their grievances redressed. Strike is the weapon that they wield.
This is a weapon of last resort. Sometimes the employers take up a
very unreasonable and uncompromising attitude. No alternative is
then left to the workers except to fight for their rights. Thus a strike
becomes inevitable.

WORKERS PARTICIPATION IN MANAGEMENT I)

INTRODUCTION AND MEANING Workers participation in management refers

to the participation o f non-managerial employees in the decision-making process of
the organisation. Workers participation gives employees the mental and
psychological satisfaction and thereby increase their involvement in the affairs o f the
organization. Workers participation in management is the most accepted principle of
industrial relations in modern industry throughout the world and in India too. In the
words of Keith Davis “Participation is a mental and emotional involvement of a
person in a group situation which encourages to contribute to group goals or
objectives and share responsibilities

The objective of WPM, as envisaged in the Second Five

Year Plan of India is to ensure:
1. Increase in productivity for the benefit of all concerned to an
enterprise, i.e., the employer, the employees and the community at
large.

2. Satisfaction of worker’s urge for self-expression in the matters of

enterprise management.

3 Making employees better understood of their roles in the

organisation.

In ultimate sense, the objective of WPM in India is to achieve

organizational effectiveness and the satisfaction of the employees.

Accordingly, the objectives of WPM in India are to:

1. Promote mutual understanding between management and
workers, i.e., industrial harmony.

2. Establish and encourage good communication system at all

levels.

3. Create and promote a sense of belongingness among workers.

4. Help handle resistance to change.

5. Induce a sense among workers to contribute their best for the

cause of organisation.

Law related to ir
1.The Trade Unions Act, 1926

2. The Trade Unions (Amendments) Act, 2001

 3. The Industrial Employment (Standing Orders) Act, 1946

4. The Industrial Employment (Standing Orders) Rules, 1946

5. The Industrial Disputes Act, 1947

Module 5
Compensation mgt
Most HR professionals already understand the most common objectives of
compensation management: the idea is to pay your employees fairly while staying in line
with the company budget. However, understanding the ways in which compensation
management affects business outcomes can help you leverage your compensation plan
to achieve better results for your company.

Here are some of the additional objectives of compensation

management:
1. To Attract Top Talent
Rai University states that one of the primary goals of compensation should be to recruit
qualified talent. When you have a competitive compensation plan in place, you’ll be
better able to attract top industry talent.
2. To Retain & Reward Personnel
Don’t lose your top talent to your competitors because employees believe that the grass
will be greener elsewhere. Find out market values for your employees and pay
accordingly. You can also set up pay-for-performance models to drive performance by
encouraging associates to reach new goals and push farther.
3. To Boost Motivation
When structured effectively, your compensation plan can drive motivation across your
teams. Employees who know that they’re being fairly compensated for their work feel
appreciated and are therefore more likely to stay engaged, committed, and productive. A
well-developed compensation plan can also increase job satisfaction in general,
according to com.
4. To Be Compliant
Compensation isn’t just about being fair within the industry; it must also comply with
federal regulations, such as the Fair Labor Standards Act. While adhering to standards
can complicate your compensation management, it will help protect your company
against litigation and ensure fairness across the board for your personnel.
5. To Maximize ROI
It requires some fine tuning, but compensation management is most effective when you
get the biggest bang for your buck. In other words, if you can create a compensation
plan that stays within budget while also driving productivity through pay-for-performance
and other motivational tactics, you’re creating a plan that’s both equitable for the
company and advantageous for hardworking employees.
 When setting up your compensation package, consider the
following components:
 Salary and wages. ...
 Bonuses. ...
 Long-term incentives. ...
 Health insurance. ...
 Life and/or disability insurance. ...
 Retirement plans. ...
 Time off and flexible schedules. ...
 Miscellaneous compensation.

International Compensation Management

Designing and developing a better compensation package for HR professionals for
the international assignments requires knowledge of taxation, employment laws, and foreign
currency fluctuation by the HR professionals. Moreover, the socio-economic conditions of the
country have to be taken into consideration while developing a compensation package. It is easy
to develop the compensation package for the parent country national but difficult to manage the
host and third country nationals. When a firm develops international compensation policies, it tries
to fulfills some broad objectives:

1. The compensation policy should be in line with the structure, business needs and overall strategy
of the organization.
2. The policy should aim at attracting and retaining the best talent.
3. It should enhance employee satisfaction.
4. It should be clear in terms of understanding of the employees and also convenient to administer.

The employee also has a number of objectives that he wishes to achieve from the compensation
policy of the firm

 He expects proper compensation against his competency and performance level.

 He expects substantial financial gain for his own comfort and for his family also.
 He expects his present and future needs to be taken care of including children’s education, medical
protection and housing facilities.
 The policy should be progressive in nature.


 Incentives
 The incentive is a positive motivational influence on a person
that helps improve his performance. Thus, it can be said that all
the measures taken by the management to improve the
performance of its employees are incentives. The incentives can
be broadly classified as financial incentives and non-financial
incentives.
 Financial Incentives
 In today’s socio-economic condition money has become a very
important part of our life. We need money to satisfy almost all
our needs as it has the purchasing power. Thus, financial
incentives refer to those incentives which are in direct monetary
form i.e. money or can be measured in monetary terms.

 Financial incentives can be provided on individual or group

basis and satisfy the monetary and future security needs of
individuals. The most commonly used financial incentives are:

 (a) Pay and Allowances

 Salary is the basic incentive for every employee to work
efficiently for an organization. Salary includes basic pay,
dearness allowance, house rent allowance and similar other
allowances. Under the salary system, employees are given
increments in basic pay every year and also an increase in their
allowances from time-to-time. Sometimes these increments are
based on the performance of the employee during the year.

 (b) Bonus
 It is a sum of money offered to an employee over and above the
salary or wages as a reward for his good performance.

 (d) Profit Sharing

 Sometimes the employees are given a share in the profits of the
organization. This motivates them to perform efficiently and
give their best to increase the profits of the organization.
 (e) Retirement Benefits
 Retirement benefits like gratuity, pension, provident fund, leave
encashment, etc. provide financial security to the employees
post their retirement. Thus, they work properly when they are in
service.

 (g) Commission
 Some organizations offer a commission in addition to the salary
to employees for fulfilling the targets extremely well. This
incentive encourages the employees to increase the client base
of the organization.

 (h) Perquisites
 Several organizations offer perquisites and fringe benefits such
as accommodation, car allowance, medical facilities, education
facilities, recreational facilities, etc. in addition to the salary and
allowances to its employees. These incentives also motivate the
employees to work efficiently.

 Non-Financial Incentives
 Apart from the monetary and future security needs, an
individual also has psychological, social and emotional needs.
Satisfying these needs also plays an important role in their
motivation. Non-financial incentives focus mainly on the
fulfilment of these needs and thus cannot be measured in terms
of money.

 However, there are chances that a particular non-financial

incentive may also involve the financial incentive as well. For
example, when a person is promoted his psychological needs
are fulfilled as he gets more authority, his status increases but at
 the same time, he has benefitted monetarily also as he gets a
rise in salary. The most common non-financial incentives are:

 (a) Status
 With reference to an organization, status refers to the position in
the hierarchy of the organizational chart. The level of authority,
responsibility, recognition, salary, perks, etc. determine the
status of an employee in the organization.

 A person at the top level management has more authority,

responsibility, recognition and salary and vice-versa. Status
satisfies the self-esteem and psychological needs of an
individual and in turn, motivates him to work hard.

 (b) Organizational Climate

 Organizational climate refers to the environmental
characteristics of an organization that are perceived by its
employees about the organization and has a major influence on
their behavior. Each organization has a different organizational
climate that distinguishes it from the other organizations.

 Some of the factors that influence the organizational climate of

an enterprise are organizational structure, individual
responsibility, rewards, risk and risk-taking, warmth and
support and tolerance and conflict. When the organizational
climate is positive employees tend to be more motivated.

 (c) Career Advancement Opportunity

 It is very important for an organization to have an appropriate
skill development programme and a sound promotion policy for
its employees which works as a booster for them to perform
well and get promoted.
 Every employee desires growth in an organization and when he
gets promotion as an appreciation of his work he is motivated to
work better.

 (d) Job Enrichment

 It refers to the designing of jobs in such a way that it involves a
higher level of knowledge and skill, a variety of work content,
more autonomy and responsibility of employees, meaningful
work experience and more opportunities of growth. When the
job is interesting, it itself serves as a source of motivation.

 (e) Job Security

 Job security provides future stability and a sense of security
among the employees. The employees are not worried about the
future and thus work with more enthusiasm. Owing to the
unemployment problem in our country, job security works as a
great incentive for the employees. However, there is also a
negative aspect of this incentive that employees tend to take
their job for granted and not work efficiently.

 (f) Employee Recognition Programmes

 Recognition means acknowledgment and appreciation of work
done by employees. Recognition in the organization boosts
their self-esteem and they feel motivated. For example,
declaring best performer of the week or month, displaying their
names on the notice board and giving them rewards, fall under
the Employee recognition programme.

 (g) Employee Participation

 Involving the employees in decision making regarding the
issues related to them such as canteen committees, work
committees, etc. also helps in motivating them and inducing a
sense of belongingness in them.
  (h) Employee Empowerment
 Giving more autonomy and powers to subordinates also make
them feel that they are important to the organization and in turn
they serve the organization better.

Group incentive programs are award programs that deliver lump–sum cash payments,
time–off awards, and/or informal recognition items to groups of employees who meet or
exceed pre–established levels of organizational performance. Designing effective group
incentive programs can be key to achieving organizational goals.

Individual incentive plans are based on meeting work-related performance standards, such
as quality, productivity, customer satisfaction, safety, or attendance. They are most
appropriate when: Performance can be measured objectively. Employees have control over
the outcomes.

Module 4
Appraising and managing performance
Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It
is a significant part of management concerned with employees at work and with their relationship
within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation, integration

and maintainance of people for the purpose of contributing to organizational, individual and societal
goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with human
resource of organization.”

Nature of Personnel Management

1. Personnel management includes the function of employment, development and
compensation- These functions are performed primarily by the personnel management in
consultation with other departments.
2. Personnel management is an extension to general management. It is concerned with
promoting and stimulating competent work force to make their fullest contribution to the
concern.
3. Personnel management exist to advice and assist the line managers in personnel matters.
Therefore, personnel department is a staff department of an organization.
4. Personnel management lays emphasize on action rather than making lengthy schedules,
plans, work methods. The problems and grievances of people at work can be solved more
effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their potential fully to
the concern.
6. It also motivates the employees through it’s effective incentive plans so that the employees
provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to human
resources, it manages both individual as well as blue- collar workers.
Functions of Personnel Management

Follwoing are the four functions of Personnel Management:

1. Manpower Planning
2. Recruitment
3. Selection
4. Training and Development

HUMAN POTENTIAL MANAGEMENT (HPM)"Human potential

management is an integrative and continuous process of enhancing
human capabilities and capacities by enhancing human beings
existing potential and helping them to discover and tap their talent
potential through micro level human development intervention and
micro level system and policies intervention to create and sustain an
environment that facilitates individuals in achieving their full
potential to their own as well as the organization advantage".

HPM is an integrative and continuous process of enhancing human

capabilities and capacities.HPM focuses more on turning
employees’ potential to their own advantage, thereby leading
automatically to the organization’s advantage. In this sense, HPM
underplays the organization’s advantage by implying that if
employees’ potential is taken care of, it is likely to enhance
employees’ sense of responsibility towards organizations and create
a feeling of organizational ownership (partnership), which could
automatically lead to the achievement of organizational
objectives/goals.

Performance Appraisal: Objectives, Methods, an other

Details!
A merit rating, performance appraisal, employee appraisal,
performance review, or (career) development discussion is a
method by which the job performance of an employee is evaluated
(generally in terms of quality, quantity, cost, and time) by the
superior manager or supervisor.

A performance appraisal is a systematic and objective method of

judging the quality of an employee in performing his job and a part
of guiding and managing career development. It is the process to
obtain, analyze, and record the information about the relative worth
of an employee to the organization. Performance appraisal is an
analysis of an employee’s recent successes and failures, personal
strengths and weaknesses, and his/her suitability for promotion or
further training.

Objectives of Performance Appraisal:

Generally, the aims of a performance appraisal are to:

a. To provide employees feedback on their performance.

b. Identify employee training needs.

c. Document criteria used to allocate organisational rewards.

d. A basis for decisions relating to salary increases, promotions,

disciplinary actions, bonuses, etc.
Graphic Rating scale:
A graphic rating scale lists the traits each employee should have and rates workers
on a numbered scale for each trait. The scores are meant to separate employees
into tiers of performers, which can play a role in determining promotions and salary
adjustments. The method is easy to understand and quite user friendly. It allows
behaviors to be quantified making appraisal system much easier.
However, the scale has disadvantages that make it difficult to use as an effective
management tool. Even with intense training, some evaluators will be too strict.
Some will be too lenient, and others may find it hard to screen out their personal
agendas. Although it is good at identifying the best and poorest of employees, it
does not help while differentiating between the average employees.
Analyse performance of employees working on Project A from April to June
2017

Essay Performance Appraisal method:

Essay Appraisal is a traditional form of Appraisal also known as “Free Form method.”
It involves a description of the performance of an employee by his superior which
needs to be based on facts and often includes examples to support the information.
Under this method, the rater is asked to express the strengths and weaknesses of
the employee’s behavior.
This technique is normally used with a combination of the graphic rating scale
because the rater can present the scale in more detail by also giving an explanation
for his rating. While preparing the essay on the employee, the rater also needs to
consider job knowledge, understanding of the company’s policies and objectives,
relations with peers, ability to plan and organize, attitude and perception of employee
in general.
The Essay evaluation method is a non-quantitative technique and highly subjective.
While it provides a good deal of information about the employee, it takes a lot of time
of the appraiser which is not always feasible.
 Attribute Discussion / Comments

1 Does the employee pay attention to detail?

2 Does the employee work well with the team?

3 Is the employee capable of taking initiative?

Checklist Scale:
Under this method, checklist of statements of traits of employee in the form of Yes or
No based questions is prepared. If the rater believes strongly that the employee
possesses a particular listed trait, he checks the item; otherwise, he leaves the item
blank. Here the rater only does the reporting or checking and the HR department
does the actal evaluation. Although it does not allow detailed analysis of the
performance.

Yes No

Gives complete attention to detail

Has complete knowledge of the product

Works well with the team

Takes initiative

Has creative approach to solving problems

Critical Incidents:
In this method, the manager prepares lists of statements of very effective and
ineffective behavior of an employee. These critical incidents or events represent the
outstanding or poor behavior of employees on the job. The manager maintains logs
on each employee, whereby he periodically records critical incidents of the workers
behavior. At the end of the rating period, these recorded critical incidents are used in
the evaluation of the workers’ performance. It provides an objective basis for
conducting a thorough discussion of an employee’s performance.
Although this method avoids recency bias, there is a tendency for managers to focus
more on the negative incidents than otherwise.

Work Standards Approach:

In this technique, management establishes the goals openly and sets targets against
realistic output standards. These standards are incorporated into the organizational
performance appraisal system. Thus each employee has a clear understanding of
their duties and knows well what is expected of them. Performance appraisal and
interview comments are related to these duties. This makes the appraisal process
objective and more accurate. It works best in long-term situations which is
recommended as it considers performances during that time.
However, it is difficult to compare individual ratings because standards for work may
differ from job to job and from employee to employee. It does not allow for
reasonable deviations.

Ranking Appraisal:
Here manager compares an employee to other similar employees, rather than to a
standard measurement for the purpose of assessing their worth. The employees are
ranked from the highest to the lowest or from the best to the worst. The problem here
is that it does not tell that how much better or worse one is than another. Also it
cannot be used for large number of employees.
Attention to detail
 1 2 3 4 5 6 7 8 9 10

Poor Average Excellent

Initiative

1 2 3 4 5 6 7 8 9 10

Poor Average Excellent

Knowledge

1 2 3 4 5 6 7 8 9 10

Poor Average Excellent

MBOs
MBO (management by objectives) methods of performance appraisal are results-
oriented. That is, they seek to measure employee performance by examining the
extent to which predetermined work objectives have been met. Usually the
objectives are established jointly by the supervisor and subordinate. Once an
objective is agreed, the employee is usually expected to self-audit; that is, to identify
the skills needed to achieve the objective. Typically they do not rely on others to
locate and specify their strengths and weaknesses. They are expected to monitor
their own development and progress. The MBO method concentrates on actual
outcomes
What makes MBOs efficient is the ability to set SMART Goals i.e. set goals that are
Specific, Measurable, Actionable, Relevant and Time-bound.

BARS:
The problem of judgmental performance evaluation inherent in the traditional
methods of performance evaluation led to some organisations to go for objective
evaluation by developing a technique known as “Behaviourally Anchored Rating
Scales (BARS)” around 1960s. This method of performance appraisal is considered
better than the traditional ones because it provides advantages like a more accurate
gauge, clearer standards, better feedback, and consistency in evaluation.
The BARS method is designed to bring the benefits of both qualitative and
quantitative data to the employee appraisal process. It compares an individual’s
performance against specific examples of behaviour that are anchored to numerical
ratings.
Although even this methods has its limitations as it is often accused of being subject
to unreliability and leniency error.
Performance appraisal is already being considered a necessary evil. Thus
companies need to be careful while selecting out of these appraisal methods. The
method should be able to provide value to the company as well as the employees
and manager

A performance-linked incentive (PLI) is a form of payment from an employer to an

employee, which is directly related to the performance output of an employee and which

may be specified in an employment contract.

Benchmarking
Benchmarks are standards for an employee’s work that a company sees fit for the
organization. The employee's ability to meet those benchmarks can be used as the
foundation of the performance evaluation.

Make sure to set benchmarks in several areas and communicate your expectations
and where you would like to see your employees succeed and improve in.

Managerial competencies
Managerial competencies are the skills, motives and attitudes
necessary to a job, and include such characteristics as communication
skills, problem solving, customer focus and the ability to work within a
team. While businesses have long been capable of analyzing and
utilizing financial and other “hard” assets, the human assets involved in
managerial competencies are harder to fit into an equation. While skills
and knowledge are a part of a manager’s competency that can be
measured fairly easily, intangible assets like effective communication
and teamwork, while essential, are harder to pin down and evaluate.

Module 2

Hr requirement
Meaning Human Resource Planning:
Human resource is the most important asset of an organisation.
Human resources planning are the important managerial function.
 It ensures the right type of people, in the right number, at the right
time and place, who are trained and motivated to do the right kind
of work at the right time, there is generally a shortage of suitable
persons.

The enterprise will estimate its manpower requirements and then

find out the sources from which the needs will be met. If required
manpower is not available then the work will suffer. Developing
countries are suffering from the shortage of trained managers. Job
opportunities are available in these countries but properly trained
personnel are not available. These countries try to import trained
skill from other countries.

In order to cope human resource requirements, an enterprise will

have to plan in advance its needs and the sources. The terms human
resource planning and manpower planning are generally used
interchangeably. Human resource planning is not a substitute for
manpower planning. Rather the latter is a part of the former i.e.,
manpower planning is integrated with human resource planning.

Dale S. Beach has defined it as “a process of determining and

assuring that the organisation will have an adequate number of
qualified persons available at the proper times, performing jobs
which meet the needs of the enterprise and which provide
satisfaction for the individuals involved.”
The main objectives of Human Resource Planning are:

1. Achieve Goal: Human Resource Planning helps in achieving individual, Organizational & National
goals. Since Human resource planning is linked with career planning, it can able to achieve
individual goal while achieving organisational and national goal.
2.
3. Estimates future organizational structure and Manpower Requirements: Human Resource
Planning is related with number of Personnel required for the future, job-family, age distribution of
 employees, qualification & desired experience, salary range etc and thereby determines
future organisation structure.
4.
5. Human Resource Audit: Human resource planning process is comprised of estimating the future
needs and determining the present supply of Manpower Resources. Manpower supply analysis is
done through skills inventory. This helps in preventing over staffing as well as under-staffing.
6.
7. Job Analysis: The process of studying and collecting information relating to operations and
responsibilities of a specific job is called Job analysis. Job analysis is comprised of job description
and job specification. Job description describes the duties and responsibilities of a particular job in
an organized factual way. Job specification specifies minimum acceptable human qualities
necessary to perform a particular job properly.

Need for Human Resource Planning

An organisation must plan out its human resource requirements well in advance so that it could
complete effectively with its competitors in the market. A well thought-out-human resource plan
provides adequate lead time for recruitment, selection and training of personnel. It becomes all the
more crucial because the lead time for procuring personnel is a time consuming process and in
certain cases one may not always get the requisite type of personnel needed for the jobs. Non-
availability of suitable manpower may result in postponement or delays in executing new projects
and expansion programmes which ultimately lead to lower efficiency and productivity further. To
be specific, the following are the needs for human resource planning:

1. Shortage of Skills: These days we find shortage of skills in people. So it is necessary to plan for
such skilled people much in advance than when we actually need them. Non-availability of skilled
people when and where they are needed is an important factor which prompts sound Human
Resource Planning.
2.
3. Frequent Labor Turnover: Human Resource Planning is essential because of frequent labor
turnover which is unavoidable by all means. Labor turnover arises because of discharges,
marriages, promotion, transfer etc which causes a constant ebb and flow in the workforce in the
organisation.
4.
5. Changing needs of technology: Due to changes in technology and new techniques of production,
existing employees need to be trained or new blood injected into an organisation.
6.
7. Identify areas of surplus or shortage of personnel: Manpower planning is needed in order to identify
areas with a surplus of personnel or areas in which there is a shortage of personnel. If there is a
surplus, it can be re-deployed, or if there is a shortage new employees can be procured.
8.
9. Changes in organisation design and structure: Due to changes in organisation structure and
design we need to plan the required human resources right from the beginning.