UNIT-V Human Resource Management (HRM) Human Resource Management (HRM)
UNIT V HRM
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Transcript of UNIT V HRM
UNIT VMethod of performance evaluation –
feedback – industry practices. Promotion, demotion, transfer and separation – implication of job change. The control process – importance – methods – requirement of effective control systems grievances – causes – implications – redressal methods.
PERFORMANCE APPRAISALIt is a method of evaluating the
behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance.
It refers to how well someone is doing the assigned job and it is a continuous process in every large scale organization.
Definition Flippo – Performance
appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job
Methods of Performance Appraisal
Traditional Methods Modern Methods
•Graphic Rating scale•Ranking method•Paired comparison method•Forced distribution method•Checklist method•Essay or free form appraisal•Group appraisal•Confidential reports
•Behaviorally Anchored Rating scales (BARS)•Assessment centre•Human resource accounting•Management by objectives (MBO)•Psychological Appraisal
Performance appraisal methods
1. Critical incident methodThis format of performance
appraisal is a method which is involved identifying and describing specific incidents where employees did something really well or that needs improving during their performance period.
2. Weighted checklist methodIn this style, performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs.
3. Paired comparison analysis This form of performance appraisal is
a good way to make full use of the methods of options. There will be a list of relevant options. Each option is in comparison with the others in the list. The results will be calculated and then such option with highest score will be mostly chosen.
4. Graphic rating scalesThis format is considered the oldest
and most popular method to assess the employee’s performance.
In this style of performance appraisal, the management just simply does checks on the performance levels of their staff.
5. Essay Evaluation method In this style of performance appraisal,
managers/ supervisors are required to figure out the strong and weak points of staff’s behaviors. Essay evaluation method is a non-quantitative technique. It is often mixed with the method the graphic rating scale.
6. Behaviorally anchored rating scales(BARS)
This formatted performance appraisal is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. The form is a mix of the rating scale and critical incident techniques to assess performance of the staff.
EXAMPLE: BARSJOB: Specialty stores manager Dimension: Inventory control
5-------- always orders in the right quantities and at the right times4--------3---------2---------1--------- Never orders in the right quantities or at the right times
7. Performance ranking method The performance appraisal of ranking
is used to assess the working performance of employees from the highest to lowest levels.
Managers will make comparisons of an employee with the others, instead of making comparison of each employee with some certain standards.
8. Management By Objectives (MBO) method
MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them.
9. 360° performance appraisal The style of 360 degree performance
appraisal is a method that employees will give confidential and anonymous assessments on their colleagues. This post also information that can be used as references for such methods of performance assessments of 720, 540, 180…
10.Forced ranking (forced distribution) In this style of performance appraisal,
employees are ranked in terms of forced allocations.
For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest one.
11. Behavioral Observation Scales(BOS)
The method based on the scales of observation on behaviors is the one in which important tasks that workers have performed during their working time will be assessed on a regular basis.
12.ASSESSM ENT CENTRE METHODIt is an assessment method that consists
of a standardized evaluation of behavior based on multiple raters and multiple measures such as in-basket exercises, paper and pencil ability test, leaderless group discussions, simulations and personality questionnaires.
Strictly speaking, an assessment centre is designed to appraise individuals’ current managerial ability, rather than their past performance.
Rating Errors/ Appraisal Errors
Factors that can distort appraisal
Leniency/strictness errorsHalo error/effectCentral tendency errorSimilarity ErrorContrast errorRecency errorPersonal bias errorAnchoring / adjustment error
ControlControlling is the process by
which management assures that actual activities conform to planned activities.
It is the managerial process for measuring progress towards planned performance and when required taking corrective action.
Importance of controlAdapting to changing conditionsThe modern business is associated with a
greater uncertainty. The conditions that are existing and perceived during planning phase may change so fast that it becomes difficult to achieve the goals. A properly designed control system can help the managers to anticipate, monitor and respond to changing conditions.
Minimizing mistakes and errors Since mistakes and errors are
inevitable, so controls must be established to catch and correct those errors that are determinable to be effective and efficient operation of the organization.
Coping with organizational complexitydiverse product lines and services
must be monitored along with the associated markets, customers, competitors and so on. Given such diversity and such magnitude of operations, close controls are necessary.
Minimizing costsProper control system can make
significant contributions to the reduction of operational costs as well as to the maximization of output. Effective control processes eliminate waste and duplication of effort while lowering labor costs and increasing output quality.
DelegationThere is a major trend toward the
downward delegation of authority and the creation of autonomous work groups.
Control processEstablish Standard
Evaluate performance and take action
Compare performance and standards
Measure performance
Change the standards
Correct the deviation
Maintain the status quo
INTERNAL MOBILITYCompanies move the employees from
one level to the another level and from one job to the another job within the company. This practice is called internal mobility. It is of three types:
PromotionTransferDemotion
Internal Mobility
PromotionsPromotion refers to advancement of an
employee to a higher post carrying greater responsibilities, higher status and better salary.
A promotion may be defined as an upward advancement of an employee in an organization to another job, which commands better pay/wages, better status/prestige, and higher opportunities/challenges, responsibility and authority, better working environment, hours of work and facilities and a higher rank.
TYPES OF PROMOTIONVERTICAL PROMOTION:
under this type of promotion, employee is moved to the next higher level, in the organizational hierarchy with greater responsibility, authority, pay and status.
Up gradation:Under this type of promotion, the job is upgraded in the organizational hierarchy. Consequently, the employee gets more salary, higher authority and responsibility. For example, the job of medical officer in Railways which was in group C is upgraded as Group B position.
Dry PromotionUnder this promotion, the
employee is moved to the next higher level in the organizational hierarchy with greater responsibility, authority and status without any increase in salary.
Bases of promotion/methods
Merit seniority Merit cum seniority
TRANSFERIt consists of a reassignment of
an employee to another job of similar pay, status and responsibility.
A transfer is a horizontal move from one job to another. It is to be distinguished from a promotion, which is a vertical move in rank and responsibility
Transfer may be defined as a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.
TYPES OF TRANSFER Personal
Production Remedial Versatility
Production TransferSuch transfers are resorted to
when there is a need of manpower in one department and surplus manpower in other. Thus, production transfers are made from a department which is overstaffed to the other department where manpower needs have increased or vacancies have occurred through separations.
Remedial TransferThese transfers are made to rectify the
situation caused by faulty selection and placement procedures. For instance, if the initial placement of an individual is faulty or he cannot adjust on the job, his transfer to a more appropriate job is desirable. This will act as a follow-up measure of selection and placement procedures and will help the employees to adjust themselves to suitable jobs.
Versatility TransferSuch transfers are made to
increase versatility of the employees from one job to another one department to another. Transfer(job rotation) are used as a device to train the employees. Each employee is provided a varied and broader job experience by moving from one job to another.
RESIGNATION
RETIREMENTDISMISSAL
LAYOFF RETRENCHMENT
SEPARATION
DEMOTION A demotion is the reassignment of an
employee to a job of lower status and pay. Demotion is sometimes called a ‘downward transfer’.
Demotion may be defined as the assignment of an individual to a job of lower rank and pay usually involving lower of difficulty and responsibility.
SeparationSeparation of an employee takes place when
his service agreement with the organization comes to an end and the employee leaves the organization. It may occur due to resignation, retirement, death, dismissal and layoff.
ResignationResignation or quitting is a voluntary separation initiated by the employee himself. Exit interview need to be conducted at the time of resignation
LayoffIt implies to the temporary removal of
an employee from the payroll of the organization due to the circumstances beyond the control of the employer. The employee is not terminated and is expected to be called back in future. The purpose of layoff is to reduce the financial burden on the organization when the human resources cannot be utilized profitably.
RetrenchmentIt means permanent termination of an employee’s services for economic reasons in a growing concern.
The employee must be given one month’s notice in writing indicating the reason for retrenchment or wages in lieu of such notice.
The employee must be paid compensation equal to 15 days wages for every completed year of service
Termination of service due to disciplinary action, prolonged illness, retirement, expiry of agreement, closure of establishment does not constitute retrenchment.
DismissalIt means separating an employee from the payroll for violation of organization rules or for inadequate performance.
An employee may be discharged on the ground of unsatisfactory performance or misconduct.
RetirementEmployees who have rendered services to the organization for a number of years expect the organization to provide for their future, when they have retired.
Every organization should have a clear-cut rules for retirement and it should help the employees to adjust himself after retirement.
Retirement
Compulsory Forcedpremature
Compulsory retirementIn central and state government offices, the retirement age is 60. but in private organization may be given extension so long as they are suitable to do a work.
Forced retirementIf an employee is found guilty either in court of law or has violated the conditions enumerated in the service agreement, he may force to retire from the service with or without the benefits, though he has not attained retirement age.
Premature retirement◦If an employee becomes disabled in an accident, or due to some disease, he may be given the option of retirement by the management before attaining the retirement age with full benefits of retirement. It is also called as voluntary retirement scheme(VRS)
Employee GrievancesA grievance is a specific, formal
notice of employee dissatisfaction expressed through an identified procedure.
It means any real or imaginary feeling of dissatisfaction and injustice which an employee has about his employment relationship.
Definition Grievance is any
dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the attention of management – Dale S. Beach
Causes / sources of GrievancesPromotionAmenitiesContinuity of serviceCompensationDisciplinary actionFinesIncrementsLeaveMedical benefitsCondition of work
Grievance Procedure/ machinery for Redressal of Grievances
Voluntary Arbitration
Committee of union & management representative
Manager
Grievance committee
Head of the Department
Supervisor
Foreman
Grievant Employee
Departmental Representatives
Departmental Representatives
V Stage within 7 days
III Stage communicates the decision within 7 days
II Stage within 3 days
I Stage answer to be given within 48 hours
Conveys verbally
IV stage appeal to management for revision
DISCIPLINARY PROCEDUREDiscipline refers to a condition or
attitude, prevailing among the employees, with respect to rules and regulations of an organization.
Procedure1. Issuing a letter of charge to the
employee calling upon him for explanation
2. Consideration of the explanation
3. Show-cause Notice4. Holding of a Full-fledged
Enquiry5. Considering the Enquiry
proceedings and findings and making final order of punishment
6. Follow-up
Types of Discipline1. Preventive Discipline
Preventive discipline is action taken to encourage employees to follow standards and rules so that infractions are prevented.
2. Corrective disciplineCorrective discipline is an action that follows a rule infraction and seeks to discourage further infractions so that future acts are in compliance with standards.
Types of punishmentOral WarningsWritten warnings – pink slipsLoss of privileges and finesPunitive suspension- employer
prohibits the employee from performing the tasks assigned & wages will not be provided
Withholding of incrementsDemotionTermination
RED HOT STOVE RULE – Douglas McGregorWithout the continual support and regard of the
subordinates, no manager can get the things done. Hence Douglas McGregor draws an analogy between touching a hot stove and undergoing discipline and –
The burn is immediateHe had a warning. When the stove was red, he knew
what would happen if he touched itThe effect is consistent. Everyone who touches a red
hot stove gets burntThe effect is impersonal. A person is burnt not because
of who he is but because he touched the red hot stove.
Grievance Redressal in Indian IndustryThe Industrial Employment
(Standing Orders)Act, 1946It provides that every establishment
employing 100 or more workers should frame standing orders which should contain, among other matters, provision for means of redressing the workers grievances against unfair treatment or wrongful exactions by the employer or his agents or servants.
The Factories Act, 1948It provides for the
appointment of welfare officers in every factory wherein 500 or more workers are ordinarily employed. These officers are generally entrusted with the task of dealing with grievances and complaints.
The Industrial Disputes Act, 1947: The employer in relation to every industrial establishment in which 50 or more workmen are employed shall provide for grievance settlement authority for the settlement of industrial disputes connected with an industrial workmen employed in the establishment