Human Resource Practices Unit 3 |Human Capital Management|B.Com second semester| Bangalore University

visit website https://sugarybloom.blogspot.com/

 Human Resource Practices- unit 3 topics

Induction and Orientation – Meaning, Definitions, Objectives and Purposes-Training – Meaning, Need, Benefits and Methods, Pros and Cons of each Method of Training Identification of Training &Development Needs-Human Resources Development of Managers and Employees-Performance Management System (PMS) – Meaning, Definitions, Objectives, Methods of Appraising the past performance and current performance of the employee and executive, projecting future performance of an employee, individual employee development difference and performance appraisal and performance management system (PA vs PMS) 

Induction

Meaning 

Induction is a process through which a new employee is introduced to the organization. It refers to the process of welcoming and socialising the individual into an organization. It is a process where an individual is made to feel comfortable and feel at home in the organization.

 Induction is a process of integration attempted by the organization with the new employee.The employee feels the sense of belongings when communicated personally. It is the responsibility of personnel department to execute the induction program.Induction is the welcoming of the new employees (processes) to make the new employee feel at home and generate in him a feeling of belonging to the organization

Definition of induction

Induction is defined as a technique by which a new employee is rehabilitated into the new environment and introducing to the employee the practices,policies and purposes of the organisation.

Objectives

The main objectives of Induction Program:

1.Reduce Insecurity
 When a new employee joins an organisation they are totally strange to the other employees and work environment there.This can make them insecure, shy and nervous.The induction programme helps them to familiarise with the environment and employees and thus reduces their insecurity.

 2.Reduced Anxiety

It helps to reduce the initial anxiety of the newly joined employee when they join a new job in a new organisation.

3.Reduced Cultural Shock
The term cultural shock refers to feelings of uncertainty,confusion or anxiety that people experience when they are introduced to a new environment which is different from their own.This is due to their unfamiliarity with the customs language or behaviour 

4.Reduced Exploitation.
Induction helps to reduce exploitation by co-workers who are not honest or not having any moral principles and helps to prevent them from taking advantage of the newly joined employees.


Characteristics of induction
  • Employees  are encouraged to ask questions.
  • Both technical and social aspects of the job are included in the  programme
  • Making the new employee’s manager responsible for the induction
  • Avoiding embarrassment to the new members.
  • Formal and informal interaction with managers and peers are arranged through induction.
  • All the information and assistance  regarding  relocation  such as house hunting, information about the local society etc are provided.
  •  Information about the company’s products, services and customers are given.
Orientation

Orientation is the planned introduction of new employees to their jobs, coworkers, and the organization. Orientation is offered by majority of employers in one or other form. The main objective of orientation is to educate new employees about the goals and responsibilities of the position and company, as well as to clarify the doubts that employees sometimes have about HR, benefits and payroll information.


Difference between induction and orientation

The terms induction and orientation are almost interrelated  and both are meant to introduce the employee to the organisation as well as its rules and regulations as a part of its introductory programme during the initial days of the joining of employees. 

As both the processes are done in the initial time of joining it is difficult to differentiate between both. Induction typically occurs first and is followed by orientation.The induction process is usually of a short duration and may be carried out on the day the employee joins the organization. Induction is an informal process, whereas orientation is more formal in nature.

In the induction process, the employee is provided an overview of the company.The employee may also be given information about the vision, mission, objectives, values, norms, policies, clients, company history and dress code of the company.  The new employees are informed about the people they have to report to and the training that they may have to go through to carry out the rules and responsibilities allocated to them.The process of induction is in the form of a presentation, and not training.


The orientation process is carried out to assist the new employees in adjusting to their position, department, responsibilities and the work environment. This process is more formal in nature and extends over a longer time period as organisations spend a few weeks or often, even a month on the orientation of their new employees.In the orientation period, the employee will be explained about the assignments allocated to them, their team members and the different systems and processes of the organization. The new recruit is helped in becoming familiar with the work setting and the tasks he/she is supposed to carry out.


Objectives of orientation

The main objectives of orientation are to introduce the new employees to the organization. There are some objectives of orientation which are given below –

  • To introduce with the goal and objectives of the organization.
  • To enhance the interest of employees towards the organization.
  • To create a positive attitude towards the organization.
  • To build the morale of employees.
  • To raise the potentiality of the employees.
  • To help the new employees to adjust themselves with the organization.
  • To encourage the employees to maintain the rules and principles of the organization.

Purposes of Orientation

To Reduce Anxiety Any employee,

Any newly joined employee when put into a totally new, environment will experience anxiety that can hinder his/her ability to learn to do the job. Proper orientation helps to reduce anxiety that results from entering into an unknown situation, and helps provide guidelines f or behaviour and conduct, so the employee doesn't have to experience the stress of guessing.

To Reduce Employee Turnover

Orientation is a method or way through which an organization shows that it values the employee, and helps provide the tools necessary for succeeding in the job.This in turn makes the employee having a better feel and satisfaction which helps to reduce the employee turnover

To Save Time For Supervisor & Co-Workers

Better the orientation, less supervision will be later be needed for the employees from the co-workers and supervisors as they themselves can handle the job.

To Develop Realistic Job Expectations

Sometimes when a new employee join the organisation he/she may have expectations about the company as well as the job which he/she might have from collected from people working in similar jobs in similar types of companies.When he/she joins the new company they come with such expectations which in actual will not match the actual reality with respect to job as well as the company.This can lead to dissatisfaction in the job. So it is very important that the newly joined employee should have a clear idea about what he/she can expect from the company and the new job. This is achieved through orientation

Positive Attitudes and Job Satisfaction

It is important that employees learn as soon as possible what is expected of them, and what to expect from others, in addition to learning about the values and attitudes of the organization. While people can learn from experience, they will make many mistakes that are unnecessary and potentially damaging.





Training

The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies.

Familiarising adequately with the culture of the organization such as how work is done, what matters in the organization, which work-related behaviours are acceptable or unacceptable and etc can help the newly joined employee to perform and work better.It is a process of learning the application of knowledge & gives employee an awareness of rules & procedures to guide their behaviour. It helps in bringing about positive change in the knowledge, skills & attitudes of employees. It can improve the skills or add to the existing level of knowledge so that the employee is better equipped to do his/her present job or make himself/herself fit for a higher job involving higher responsibilities. It fills the gap between what the employee has & what the job demands.  Training is one of solution to improve performance of the employees.

Need for Employee Training 

Training of employees takes place after orientation takes place. Training is the process of enhancing the skills, capabilities and knowledge of employees for doing a particular job. Training process moulds the thinking of employees and leads to quality performance of employees. It is continuous and never ending in nature. 
Training is given on four basic grounds: 

1. New candidates who join an organization are given training. This training familiarizes them with the organisational mission, vision, rules and regulations and the working conditions.

 2. The existing employees are trained to refresh and enhance their knowledge.

 3. If any updations and amendments take place in technology, training is given to cope up with those changes. For instance, purchasing new equipment, changes in technique of production, computer impartment. The employees are trained about use of new equipment's and work methods. 

4. When promotion and career growth becomes important .Training is given so that employees are prepared to share the responsibilities of the higher level job.
 Training needs can be assessed by analyzing three major human resource areas: the organization as a whole, the job characteristics and the needs of the individuals. 

Importance  of Training

Training is crucial for organisational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well. 

The benefits of training can be summed up as: 

1. Improves Morale of Employees

Training  gives a new level of confidence to the employee which later helps the employee to get job security and job satisfaction. The more satisfied the employee is and the greater is his morale, the more he will contribute to organisational success and the lesser will be employee absenteeism and turnover. 

2. Less Supervision

A well trained employee will be well acquainted with the job and will need less of supervision. Thus, there will be less wastage of time and efforts of both the employee and the supervisors.

3. Fewer Accidents/Errors

Errors are likely to occur if the employees lack knowledge and skills required for doing a particular job. The more trained an employee is, the less are the chances of committing accidents in job and the more proficient the employee becomes. Less error from the employee side leads to less wastage and more output.

4. Chances of Promotion

When employees are more skilled they become more  efficient  and  confident in their jobs and can perform better in their work. This improves their chances of getting promotions and higher job responsibilities which makes them  an asset for the organization. 

5. Increased Productivity

Training improves efficiency and productivity of employees. Well trained employees show both quantity and quality performance. There is less wastage of time, money and resources if employees are properly trained as less supervision is needed for a skilled and efficient employee

Types of Employee Training 

 One can generally categorize such training as

i) on-the-job 
ii)off-the-job:

On-the-job training 
In this method the employee is trained with actual resources they may be going to actually work with in their job.It takes place in a normal working situation, using the actual tools, equipment, documents or materials that trainees will use when fully trained.this is the most preferred  and most effective type of training in case of vocational work. 



The most frequently used method in smaller organisations that is on the job training. This method of training uses more knowledgeable, experienced and skilled employees, such as mangers, supervisors to give training to less knowledgeable, skilled, and experienced employees. OJT can be delivered in classrooms as well. This type of training often takes place at the work place in informal manner.

 On the Job Training is characterised by following points 

 It is done on ad-hoc manner with no formal procedure, or content 
 At the start of training, or during the training, no specific goals or objectives are developed  Trainers usually have no formal qualification or training experience for training 
 Training is not carefully planned or prepared  
The trainer are selected on the basis of technical expertise or area knowledge

i)On the job training methods

The four techniques for on the job training are: 

1. Coaching

Coaching is one of the training methods, which is considered as a corrective method for inadequate performance.This method best suits for the people at the top because if we see on emotional front, when a person reaches the top, he gets lonely and it becomes difficult to find someone to talk to. It helps in finding out the executive’s specific developmental needs.

The procedure of the coaching is mutually determined by the executive and coach. It is then followed by successive counselling and meetings at the executive’s  by the coach For the people at middle level management, coaching is usually done by the supervisor; however experts from outside the organization are at times used for up and coming managers. Again, the personalized approach assists the manger focus on definite needs and improvement. 

 2.Mentoring

Mentoring is an ongoing relationship that is developed between a senior and junior employee. Mentoring provides guidance and clear understanding of how the organization goes to achieve its vision and mission to the junior employee. The meetings are not as structured and regular than in coaching. Executive mentoring is generally done by someone inside the company. 

The executive can learn a lot from mentoring. By dealing with different employees, the executive gets the opportunity to grow professionally by developing management skills and learning how to work with people with diverse background, culture, and language and personality types. 

Executives also have mentoring where the executive is new to the organization. A senior executive could be assigned as a mentor to assist the new executive settled into his role. Mentoring is one of the important methods for preparing them to be future executives. This method allows the mentor to determine what is required to improve mentee’s performance. 

Once the mentor identifies the problem, weakness, and the area that needs to be worked upon, the mentor can advise relevant training. The mentor can also provide opportunities to work on special processes and projects that require use of proficiency.
3. Job Rotation

This approach allows the manger to operate in diverse roles and understand the different issues that crop up. If someone is to be a corporate leader, they must have this type of training. A recent study indicated that the single most significant factor that leads to leader’s achievement was the variety of experiences in different departments, business units, cities, and countries. An organized and helpful way to develop talent for the management or executive level of the organization is job rotation. It is the process of preparing employees at a lower level to replace someone at the next higher level. It is generally done for the designations that are crucial for the effective and efficient functioning of the organization

4. Job Instruction Technique (JIT) 

Job Instruction Technique (JIT) uses a strategy with focus on knowledge (factual and procedural), skills and attitudes development.
 JIT Consists of Four Steps: 
Plan – This step includes a written breakdown of the work to be done because the trainer and the trainee must understand that documentation is must and important for the familiarity of work.
Present – In this step, trainer provides the synopsis of the job while presenting the participants the different aspects of the work.
Trial – This step actually a kind of rehearsal step, in which trainee tries to perform the work and the trainer is able to provide instant feedback.
Follow-up – In this step, the trainer checks the trainee’s job frequently after the training program is over to prevent bad work habits from developing


ii)OFF THE JOB TRAINING 
In this method the training usually takes place away from normal work situations.It has the advantage that it allows people to get away from work and concentrate more thoroughly on the training itself. This type of training has proven more effective in implanting new concepts and ideas. 

There are many management development techniques that an employee can take in off the job. 

The few popular methods are: 

1.Classroom Lectures 
This method comes under the off the job methods of training. Classroom method or lecture method is well-known to train white collar or managerial level employees in the organisation. under this method employees are called to the room like that of classroom to give training by trainer in the form of lectures. This method is effectively used for the purpose of teaching administrative aspects or on management subject to make aware of procedures and to give instructions on particular topic.

Advantage – It can be used for large groups. Cost per trainee is low.

Disadvantages – Low interest of employees. It is not learning by practice. It is One-way communication. No authentic feedback mechanism. Likely to lead to boredom for employees.

2.Audio-Visual

Providing training by way of using Films, Televisions, Video, and Presentations etc. This method of training has been using successfully in education institutions to train their students in subjects to understand and assimilate easily and help them to remember forever. New companies have come up for providing audio visual material for students in their concern subjects. In the corporate sector, mainly in customer care centres employers are giving training to their employees by using audio visuals material to teach how to receive, talk and behaviour with the customer.

Advantages – Wide range of realistic examples, quality control possible.

Disadvantages – One-way communication, No feedback mechanism. No flexibility for different audience.


3 .Sensitivity Training 

 Sensitivity Training is about making people understand about themselves and others reasonably, which is done by developing in them social sensitivity and behavioural flexibility. Social sensitivity in one word is empathy. It is ability of an individual to sense what others feel and think from their own point of view. Behavioural flexibility is ability to behave suitably in light of understanding.


 4. Transactional Analysis
Transactional Analysis provides trainees with a realistic and useful method for analyzing and understanding the behaviour of others. In every social interaction, there is a motivation provided by one person and a reaction to that motivation given by another person. This motivation reaction relationship between two persons is a transaction. Transactional analysis can be done by the ego states of an individual. An ego state is a system of feelings accompanied by a related set of behaviours.

 5.Straight Lectures/ Lectures

Lecture is telling someone about something. Lecture is given to enhance the knowledge of listener or to give him the theoretical aspect of a topic. Training is basically incomplete without lecture. When the trainer begins the training session by telling the aim, goal, agenda, processes, or methods that will be used in training that means the trainer is using the lecture method. It is difficult to imagine training without lecture format. There are some variations in Lecture method. 

The variation here means that some forms of lectures are interactive while some are not.: Straight lecture method consists of presenting information, which the trainee attempts to absorb. In this method, the trainer speaks to a group about a topic. However, it does not involve any kind of interaction between the trainer and the trainees. A lecture may also take the form of printed text, such as books, notes, etc. The difference between the straight lecture and the printed material is the trainer’s intonation, control of speed, body language, and visual image of the trainer. 

6. Simulation Exercises

Training games and simulations are different from work as they are designed to reproduce or simulate events, circumstances, processes that take place in trainees’ job. A Training Game is defined as spirited activity or exercise in which trainees compete with each other according to the defined set of rules. Simulation is creating computer versions of real-life games. Simulation is about imitating or making judgement or opining how events might occur in a real situation. It can entail intricate numerical modelling, role playing without the support of technology, or combinations. Training games and simulations are now seen as an effective tool for training because its key components are:  Challenge  Rules  Interactivity These three components are quite essential when it comes to learning

7.Vestibule Training

Technical staff, office staff and employees who handle tools and machinery typically undergo vestibule training. Trainees learn about their position using the equipment they'll use on the job. However, unlike on-the-job training, vestibule training takes place away from the workplace. This means the tools and equipment used for vestibule training comes to the training location. Employers typically administer this type of training to introduce their employees to new or advanced tools and machinery they want them to use to perform certain duties related to their job.

8.Case Studies
With this method, trainees receive a situation or problem in the form of a case study that pertains to their field. In other words, they receive a written description of a real situation that previously occurred. They're then instructed to analyse the situation and provide their conclusions in a written format. Training instructors then review the pros and cons of each option to help trainees improve their decision-making skills.

9.Role Playing

Often reserved for customer service professions, role playing involves trainees taking on roles and acting out certain situations to help them better understand the learning concepts. Trainees act as if they're facing the situation and having to solve it without guidance or prior rehearsal. Role players have to quickly respond to the ever-changing situation and react as they would to the situation in real-life. This off-the-job training method essentially involves realistic behaviour in a hypothetical circumstance. Examples of situations trainees may face include hiring, discussing a workplace problem or making a sales pitch to a customer
.In-basket method
In this method the trainee  is given some information regarding the roles and responsibilities he has to do with respect to the job. The trainee will then be given the log of materials the make up the in-basket and then they are asked  to respond to those materials within a specific time period.Once the trainees complete the in-basket, a discussion with the trainer takes place.

In this discussion the trainee describes the justification for the decisions. The trainer then provides feedback, reinforcing decisions made suitably or encouraging the trainee to increase alternatives for those made unsuitably.

Advantages of On the Job Training Methods 

On the job training method has the following advantages that can be considered: 
Generally most cost-effective  
Employees are actually productive 
Opportunity to learn whilst doing  
Training alongside real colleagues.  
Training can be delivered on time and at the optimum time.  
The trainee will have the good opportunities to practice and implement. 
The trainee will have feedback's 
Trainee builds confidence by working with own speed and productivity


Disadvantages of 'On the Job' Training

1.Low Productivity rates 
As the trainees are taken to real workstation they will be in the process of acquiring and learning skills the productivity of the organisation as one single unit will be lowered to a great extent.

2.Errors on production occurs
There are chances of occurrence of errors in the overall production activities, as employees are not used to day to day activities,whereas the goods produced by skilled and experienced employees will of qualitative nature.

3.Expensive both physically and in monetary terms
The goods produced by the trainees during the learning process will be of lower quality and there are even chances of goods getting damaged permanently. All these result in higher cost

4.Possibility of accidents
As trainees are still in their learning phase, they may still do not have sufficient knowledge about the equipment or resources.This can lead to the possibility of accidents

5. Creating  disturbance
The existing and experienced workers may fell troubled and disturbed  by the interruption of  trainees  as they are still in their learning process and  also by the supervisors who supervise the daily work.



Advantages of off the job training

There are several advantages of off-the-job training, including encouraging employees to try new things and move out of their comfort zone. The primary benefits of off-the-job training are as follows:

1.Productivity

One of the main purposes of off-the-job training is to optimize employee performance and provide clarity on their role in an organization. It also gives employees an opportunity to self-evaluate and study their development in a systematic manner over a period of time. All these factors ultimately combine to make employees more efficient and productive.

2.Low risk

Even if employees mess up during off-the-job training, there are no tangible costs that the organization has to bear. This makes off-the-job training a suitable training ground where participants can push their limits and experiment with their working styles.

3.Economically efficient

A well-designed off-the-job training program means that organisations can simultaneously train several employees without having to devote time to individuals. A well-structured off-the-job training program helps organisations optimise resources to get the best out of their employees.

4.Insight and Knowledge

One of the biggest advantages of off-the-job training is that it provides employees with insights and knowledge by simulating real-time scenarios. Research has proved that what employees learn during off-the-job training, both in terms of theory and practical application, prepares them well to deal with a variety of scenarios as part of their jobs.

5.Promotes team spirit

Most off-the-job training exercises involve working in a collective environment, with many techniques requiring active collaboration and teamwork. It’s no secret that a successful organization is built on successful teams across departments. Through off-the-job training, employees get hands-on experience of working with associates who they’ll need to work with as part of their jobs as well. This provides a great opportunity to develop a healthy working environment and cultivate team spirit

All of these not only help improve employee performance but also nurture their foundational skills, assisting in personal growth and development.

Disadvantages

The main disadvantages of off-the-job training are:

1.Reduced Exposure to work environment

Surveys have shown that most employees believe that off-the-job training doesn’t provide adequate exposure to their work environment. Regular off-the-job training sessions mean that employees spend a fixed time every week away from their workstations. This may pose a problem for new recruits who need time to familiarise themselves with their surroundings. In jobs that require handling complex equipment, reduced exposure to the work environment can be an even bigger hindrance to performance.

2.Requires considerable investment

While a well-constructed off-the-job training program is generally profitable in the long run, organisations have to make a considerable investment initially. This investment, both in terms of financial resources as well as time and personnel, may not always pay off. There’s always the possibility that some employees will not take off-the-job training seriously or cannot juggle its requirements alongside their primary responsibilities.

3/Breeds complacency

If an employee excels during off-the-job training, they can be under the impression that they are bound to ace the same challenges on the job. This is a naive approach as the pressures of real-time scenarios may prove harder than the simulation.

4.Lack of Feedback

The way in which most off-the-job training programs are designed leaves little room for feedback or engagement from employees about what works for them and what doesn’t. On the surface, this may seem easy to fix, but in practice, it can be hard to provide a proper feedback mechanism for off-the-job training.

Not withstanding the advantages and disadvantages of off-the-job training, recent history has shown that organisations are better off with it than without it.


Identification of Training & Development Needs-

 steps for identifying the training needs of your employees
1. Set clear expectations for each role

To identify training and development needs, you must first set clear expectations for each role within your business. This creates a benchmark to monitor performance against.

Review job descriptions when new positions are created, or when making substantial changes to existing roles. Remember to periodically account for smaller changes as well.

Doing this makes it easier to understand what skills an employee needs if they are to be successful in each role. And in turn this helps you identify skills gaps and potential training and development needs.

2. Monitor employee performance

Measuring and monitoring  should be embraced as a means of supporting employees (not penalising them) and can be a valuable tool in identifying development opportunities.

Set clear goals for employees and respond to performance blips on an individual basis. Understanding why performance is off kilter puts you in a better position to respond positively and offer appropriate training.

Conversely, if an employee continuously over delivers, you could work with them to set more challenging goals to stretch their abilities.

 

3. Ask away

Now this may seem obvious, but employee feedback can be a valuable addition to your SMEs training and development plan.

Instead of traditional employee surveys, use focused employee evaluation to encourage honest and open feedback. This will create helpful dialogue about career development and help you identify specific training requirements.

You don’t need to set up special meetings – use regular one to one or performance for open conversations and honest feedback.

A simple way to do this is to ask employees to rate their job satisfaction and performance and then ask them what would make it better. Also ask them to comment on your current  training and development programme and to understand whether it's supporting their career goals.

Don’t restrict your business to individual level feedback, ask managers for feedback on employees and compare that with employee self-evaluation to identify differences. It is equally useful to ask for employee feedback on managers.

4. Analysis (and lots of it)

This should help you identify training and development needs that are specific to each team and job.Tapping into what's going on under the surface will help you spot gaps in your training and development schedule.

It’s likely that training and development needs will fall into one of three categories:

Improving staff knowledge about your industry

Job-related needs

Personal development

5. Make the most of personal development plans

Giving employees the opportunity to lead their personal development can have a profound effect on their motivation and their engagement in your business.

Well-managed personal development plans improve communication and will also help you identify any relevant training and development needs.

6. Use focus group to understand training and development needs

Focus groups are a useful tool to help you identify training and development needs within your business. A focus group looks at a cross-section of employees within your business under the guidance of an expert facilitator.

They are a useful way of gathering employees’ views and opinions about current training and how to improve what is on offer. Focus groups also help demonstrate that you are genuinely interested in your employees' opinions.

7. Set up a system of mentoring and coaching

Closely aligning staff with a mentor will help develop skills while identifying additional training and development needs. Mentoring programmes are a great way of helping employees succeed in their careers and can be as powerful for the mentors as they are for the 'mentees'.

And don’t think that it needs to be senior managers mentoring younger employees.Reverse mentoring can be just as powerful.

Carrying out a training needs analysis (TNA) is the best, most cost-effective way to identify the training needs of the talent in a company, and it’s the first step within the training development cycle.2

Human Resources Development of Managers and Employees

It is also known as ‘management development’ or ‘executive development’It is realized that an effective management team may be as important to the survival of an organization as any tangible item on the balance sheet. Interest in management development is great partly due to the shortage of well-trained managers. Executive development or management development is a systematic process of learning and growth by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage the work in their organization effectively and efficiently


The program of executive development aims at achieving following purposes: - 

 To sustain good performance of managers throughout their careers by exploiting their full potential.  To understand economic, technical, and institutional forces in order to solve business problems.  To acquire knowledge about problems of human resources.  To think through problems this may confront the organization now or in the future.  To develop responsible leaders.  To inculcate knowledge of human motivation and human relationships.  To increase proficiency in management techniques such as work study, inventory control, operations research and quality control.

The characteristics of executive development are as following: - 
 Executive development is a planned and organized process of learning.  It is an ongoing and never ending exercise.  Executive development is a long term process as managerial skills cannot be developed overnight.  It aims at preparing managers for managers



Performance management system

It is the systematic approach to measure the performance of employees. It is a process through which the organization aligns their mission, goals and objectives with available resources (e.g. Manpower, material etc), systems and set the priorities.

The execution administration framework is a continuous method of characterizing and conveying the activity parts and duties, execution desires, goals and set their needs between officials in charge  and subordinates . It incorporates association, office and representative shared objective and targets which are lined up with frameworks and assets. It is the channel of providing clarity about goals and also to improve the business processes through various methods and mechanism.

Managing employee’s performance is the key objective of establishing systematic Performance Management system in an organization.These process servers’ six main purposes in the company:

Strategic 

Performance managed system is a tool which should be align with overall organization goal followed through department goal and individual goals.In other words, the organizational strategic goals should be linked with each activity performed by every department or employee.

Administrative

Performance management system is also set the deciding factor of employee’s promotion, demotion, salary increment, transfer and terminations.It enables to identify the performers, non-performers or under performer employees in an organization. It merits the competency and skill level of employees. Hence, it clearly defines the administrative role as well and supports the management decisions.

Communication

It is the effective communication channel to inform employees about their goals, job responsibilities, key deliverables and performance standards. Further, it is also a structure method to indicate the key areas of improvement required by the employee in order to improvise his performance. In other words, it provides  the platform to learn and train on skills, and knowledge for better performance and results.

Developmental

It is the structure method of communicating the positive feedback, improvement areas, and development plans. The manager can use various methods like training, mentoring, coaching etc. and them their team members to perform better.

Organizational Maintenance

Performance management system is the yardstick of measuring employee, department and organization achievements  and evaluating the performance gaps through various tools and techniques. Hence, it maintains the health of the organization and its performance standards.

Documentation

The performance management reviews, feedback and forms should be documented and maintained periodically by every organization. It would enable them to look forward, set new targets, design developmental needs, design training and learning programmes and career progression of employee and for department. Hence, it helps in driving the organizational needs to desirable objectives.

Methods of Appraising the past performance and current performance of the employee and executive,

Methods of Performance Appraisal Performance appraisal methods are categorised in two ways traditional and modern methods. Each organization adopts a different method of performance appraisal according to the need of organization. In small organization, it may be on an informal basis where personal opinion of a superior about his subordinates may consider for appraisal.

Traditional Methods 

 Ranking method 
1. Ranking Method: It is the oldest and simplest method of performance appraisal in which employees’ are ranked on certain criteria such as trait or characteristic. The employee is ranked from highest to lowest or from worst to best in an organization
Paired comparison 
In this method, the evaluator ranks employees by comparing one employee with all other employees in the group. 
Grading method 
In this method, certain categories are defined well in advance and employees are put in particular category depending on their traits and characteristics. Such categories may be defined as outstanding, good, average, poor, very poor
Forced distribution method 
The fundamental assumption in this method is that employees’ performance level conforms to a normal statistical distribution
 Forced choice method 
The forced-choice rating method contains a sequence of question in a statement form with which the rater checks how effectively the statement describes each individual being evaluated in the organization. 
Checklist method 
In this method of evaluation the evaluator is provided with the appraisal report which consist of series of questions which is related to the appraise. Such questions are prepared in a manner that reflects the behaviour of the concerned appraise. Every question has two alternatives, yes or no
Critical incidents method 
This method is very useful for finding out those employees who have the highest potential to work in a critical situation. Such an incidence is very important for organization as they get a sense, how a supervisor has handled a situation in the case of sudden trouble in an organization, which gives an idea about his leadership qualities and han­dling of situation.
Graphic scale method
In graphic rating scale the printed appraisal form is used to appraise each employee. Such forms contain a number of objectives, and trait qualities and characters to be rated like quality of work and amount of work, job know how dependability, initiative, attitude, leadership quality and emotional stability. The rater gives an estimate the extent to which subordinates possess each quality
 Essay method 
In this method, the rater writes a detailed description on an employee’s characteristics and behavior, Knowledge about organizational policies, procedures and rules, Knowledge about the job, Training and development needs of the employee, strengths, weakness, past performance, potential and suggestions for improvement
Field review method
 In this method of appraisal direct superior is not going to appraise an employee but appraised by another person, usually, from personnel department .The rater, in such a case, appraises the employee on the basis of his past records of productivity and other information such as absenteeism, late corning, etc

Modern Methods

Management by Objectives (MB0) 
The basic nature of MBO is participative, setting their goals, selecting a course of actions to achieve goals and then taking decision. The most important aspect of MBO is measuring the actual performances of the employee with the standards set by them. It is also said to be a process that integrates organisational objectives into individual objectives.

Behaviourally anchored rating scales 
This method is a combination of traditional rating scales and critical incidents methods. It consists of preset critical areas of job performance or sets of behavioral statements which describes the important job performance qualities as good or bad

Assessment centres 
In this method employees from different departments are brought together for an assignment which they are supposed to perform in a group, as if they are working for a higher post or promoted. Each employee is ranked by the observer on the basis of merit .The basic purpose behind assessment is to recognize whether a particular employee can be promoted, or is there any need for training or development

360-degree appraisal
In 360 degree performance appraisal an employee can be appraised by his peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into direct or indirect contact with the employee and can provide necessary information or feedback regarding performance of the employee the “on-the-job”.

Cost accounting method 
In this method performance of an employee is evaluated on the basis of monetary returns the employee gives to his or her organization. A relationship is recognised between the cost included in keeping the employee in an organization and the benefit the organization gets from him or her. The evaluation is based on the established relationship between the cost and the benefit. 

Performance Appraisal(PA) versus Performance Management System(PMS)

Performance Appraisal, means the analysis of an employee's performance and their caliber for future growth and development whereas Performance Management is the management of human resources in an organization.

Performance appraisal is a system whereas performance management system is  a process

PA is rigid by nature whereas PMS is supple by nature

PA is an operational tool whereas PMS is a strategic tool

PA is owned by HR Department whereas PMS is owned by managers

PA is conducgted annually whereas PMS is a continuously conducted

PA uses individualistic approach whereas PMS uses holistic approach

PA is focussed on quantitative aspects whereas PMS is focused on qualitative aspects

PA has retrospective corrections whereas PMS has prospective corrections


Comments

Popular posts from this blog

Cartooning English chapter 4 |B.Com English notes | English Literature

All creatures great and small-Ruskin Bond|B.com/BBA I Semester

Homeless in the Global Village English Chapter 5| B.com/BBA General English notes