HRM IV SEM

BBM

3. Case Discussion (Case studies):-

The case study method , the instructor describes the actual situation or problem
on a specific concern of the problem. This method increases the trainee’s
power of observation & also his analytical ability.
4. Role Play:-
It is defined as a method of human interaction that involves realistic behaviour
in imaginary situations. This method of training involves action, doing &
practice. The participants play the role of certain characters such as the
production manager, mechanical engineer, superintendents, maintenance
engineers, quality control inspectors, foreman, workers & the like. This method
is mostly used for developing interpersonal interactions & relations.
5. Programmed Instruction:
In recent years, this method has become popular. The subject matter to be
earned is presented in a series of carefully planned sequential units. These units
are arranged from simple to more complex levels of instruction. The trainees
go through these units by answering question or filling the blanks. This method
is expensive & time consuming.
6. T- Group or Sensitivity Training:-
This method aims to influence an individual’s behaviour through group
discussion. In group discussion, the trainees freely express their ideas, beliefs
& attitudes. In this method the trainees are enabled to see themselves as others
see them & develop an understanding of others’ views & behaviour. Further,
any. In addition the trainees by interaction in a group become sensitive to one
another’s feelings & also develop increased tolerance for individual’s
differences.
7. In basket Training:-
In this method to acquaint employees about their job where a number of
problems are kept in the in basket ( usually kept on the desk of the employee).
The worker has to look at the problems which could also the complaints from
different employees & simultaneously deal with those problems.

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DIFFERNENCE BETWEEN TRAINING AND DEVELOPMENT

BASIS FOR
TRAINING DEVELOPMENT
COMPARISON

Meaning Training is a learning Development is an

process in which employees educational process which is
get an opportunity to concerned with the overall
develop skill, competency growth of the employees.
and knowledge as per the
job requirement.

Term Short Term Long Term

Focus on Present Future

Orientation Job oriented Career oriented

Motivation Trainer Self

Objective To improve the work To prepare employees for

performances of the future challenges.
employees.

Number of Many Only one

Individuals

Aim Specific job related Conceptual and general

knowledge

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CAREER PLANNING

Meaning
Career planning is the self-evaluation & planning done by a person to have a strong
career path. Career planning process in the continuous reiterative process of
understanding oneself, setting career goals, revising skills and searching for the right
career options.
Importance of Career Planning
1. To attract competent person & to retain them in the organisation.
2. To provide suitable promotional opportunity.
3. To enable the employees to develop & take them ready to meet the future
challenges.
4. To increase the utilization of managerial reserves within an organisation.
5. To attract employment placement.
6. To reduce employee dissatisfaction & turnover.
7. To improve motivation & morale .
STEPS IN THE CAREER PLANNING PROCESS

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Career planning process is an important aspect for an individual’s career

development. Some of the basic steps in a career planning process are:
1. Self-Assessment: The first step in the career planning process is self-assessment to
be done by the individual to understand his or her skills, areas of interest etc.
2. Research on Careers: The second step in the career planning process is to
understand the career options, companies available, growth options in career etc.
3. Set Career Objectives: The next step in the career planning is to set short-term as
well as long-term career goals for oneself, and to have a clear career path.
4. Learn & Improve Skills: The fourth step in the career planning process is to keep
acquiring new skills and knowledge to be in line with career objectives and with
industry requirements.
5. Preparation of CV: The next step in the career planning is to be fully prepared in
terms of CV, cover letter, recommendations etc.
6. Job Search: The sixth step in the career planning process is to short-list the
companies where an individual is seeking a job & start applying.
7. Revise Career Goals: The last step in the career planning process is to
continuously evaluate the career goals and again do a self-assessment to build a strong
career path.
SUCCESSION PLANNINNG
Meaning
 Succession Planning is the process of identifying and tracking high-potential
employees who will be able to fill top management positions when they
become vacant.
 Succession planning is an ongoing process that identifies necessary
competencies, then works to assess, develop, and retain a talent pool of
employees, in order to ensure a continuity of leadership for all critical
positions. Succession planning is a specific strategy, which spells out the
particular steps to be followed to achieve the mission, goals, and initiatives
identified in workforce planning. It is a plan that managers can follow,
implement, and customize to meet the needs of their organisation, division,
and/or department.
 Succession planning establishes a process to recruit employees, develop their
skills, and prepare them for advancement, all while retaining them to ensure a
return on the organization's training investment. Succession planning involves
understanding the organization's long-term goals and objectives, identifying
employee development needs, and determining trends.

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DIFFERENCE BETWEEN CAREER PLANNING & SUCCESSION

PLANNING

BASIS FOR
CAREER PLANNING SUCCESSION PLANNING
COMPARISON

Meaning Career Planning is the Succession Planning is a process

process through which an who tends to spot and develop the
individual selects the goals employees, that can occupy the key
of his work life and finds positions in the organization, when
ways to reach the goals. they become vacant.

Subset of Career Management Succession Management

What is it? Individual Planning Organizational Strategy

Position One employee holds One position is held by different

different positions, in his/her employees, over a period of time.
work life.

Ensures Success in one's career. Continuity in leadership for all key

positions.

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UNIT IV

EVALUATING AND REWARDING EMPLOYEES

PERFORMANCE APPRAISAL

MEANING

Performance appraisal is the process of measuring quantitative &

qualitatively an employee’s past or present performance against the
background of his expected role performance and about his future potential
of an organisation.

DEFINITION

Acc. to Edward flippo “ performance appraisl is a systematic, periodic &

an impartial rating of an employee’s excellence in matters pertaining to his
present job & his potential for a better job”.

Acc. to Wayne Cascio as “the systematic description of employee’s job

relevant, strength, weakness. Performance appraisal may be conducted once
in every 6 months or once in a year. The basic idea of the appraisal is to
evaluate the performance of the employee, giving him a feed back. Identify
areas where improvement is required so that training can be provided. Give
incentives and bonus to encourage employees etc.

ADVANTAGES/NEEDS/IMPORTANCE/USE/PURPOSE OF
PERFORMANCE APPRAISAL PERFORMANCE APPRAISAL

1. Feedback to the employee :- Performance appraisal is beneficial

because it provides feedback to the employee about his performance. It
identifies the areas for improvement so that employee can improve itself.

2. Training and development :- Due to performance appraisal it is easy to

understand what type of training is required for each employee to improve
himself accordingly training programs can be arranged.

3. Helps to decide promotion :- Performance appraisal provides a report

about the employee. Based on this report future promotions are decided,
incentives, salary increase is decided.

4. Validation of selection process :- Through performance appraisal the

HR department can identify whether any changes are required in the
selection process of the company normally a sound selection process results
in better performance and positive appraisal.

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5. Deciding transfers and lay off of the worker :- Employee with specific
talent can be transferred to places where their talents are utilized properly;
similarly decisions regarding termination of employees depend upon
performance appraisal reports.

6. Human resource planning and career development:- Companies can

plan for future vacancies at higher levels based on performance appraisal
reports. Similarly career planning can be done for the employee on the
performance appraisal report.

PROCESS OF PERFORMANCE APPRAISAL

1. Setting performance standards :- In this very first step in performance

appraisal the HR department decides the standards of performance i.e. they
decide what exactly is expected from the employee for each and every job.
Sometimes certain marking scheme may be adopted eg. A score 90/100 =
excellent performance, a score of 80/100 = good. And so on.

2. Communication standard set to the employee :- Standards of

performance appraisal decided in 1st step are now conveyed to the employee
so that the employee will know what is expected from him and will be able to
improve his performance.

3. Measuring performance :- The performance of the employee is now

measure by the HR department, different methods can be used to measure
performance i.e. traditional and modern method. The method used depends
upon the company’s convenience.

4. Comparing performance with standard :- The performance of the

employee is now judged against the standard. To understand the score
achieved by him. Accordingly we come to know which category of
performance the employee falls into i.e. excellent, very good, good,
satisfactory etc.

5. Discussing result :- The results obtained by the employee after

performance appraisal are informed or conveyed to him by the HR
department. A feedback is given to the employee asking him to change
certain aspects of his performance and improve them.

6. Collective action :- The employee is given a chance or opportunity to

improve himself in the areas specified by the HR department. The HR
department constantly receives or keeps a check on the employee’s
performance and notes down improvements in performance.

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7. Implementation and review :- The performance appraisal policy is to be

implemented on a regular basis. A review must be done from time to time to
check whether any change in policy is required. Necessary changes are
made from time to time.

METHODS OF PERFORMANCE APPRAISAL

I.Traditional method

Traditional approach is also known as traits approach . it is based on the

evaluation of traits in a person. This system may list ten to fifteen personal
characteristics such as ability to get in along with people, competence,
judgement, inititative & leadership etc.

1. Check list method :-

In this method the senior, the boss is given a list of questions about the
junior. These questions are followed by check boxes. The superior has to put
a tick mark in any one of the boxes This method can be explained with the
following eg. * Y N Does the employee have leadership qualities?

*Y N Is the employee capable of group efforts?

* Y N Has the employee shown analytical skills?

2. Confidential report :-

This method is very popular in government departments to appraise IAS

officers and other high level officials. In this method the senior or the boss
writes a report about the junior giving him details about the performance
about the employee. The +ve and – ve traits, responsibilities handled on the
job and recommendations for future incentives or promotions. The report is
kept highly confidential and access to the report is limited.

3.Critical incident method :-

In this method critical or important incidents which have taken place on

this job are noted down along with employee’s behavior and reaction in all
these situations. Both +ve and –ve incidents are mentioned. This is followed
by an analysis of the person, his abilities and talent, recommendations for
the future incentives and promotions.

4.Ranking method :-

In this method ranks are given to employees based on their performance.

There are different methods of ranking employees. Simple ranking method
Alternate ranking method Paired comparison method

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i. Simple ranking method :- Simple ranking method refers to ranks in

serial order from the best employee eg. If we have to rank 10 best employees
we start with the first best employee and give him the first rank this is
followed by the 2nd best and so on until all 10 have been given ranks.

ii. Alternate ranking :- In this method the serial alternates between the
best and the worst employee. The best employee is given rank 1 and then we
move to the worst employee and give him rank 10 again to 2nd best
employee and give him rank 2 and so on.

iii. Paired comparison :- In this method each and every person is the
group, department or team is compared with every other person in the
team/group/department. The comparison is made on certain criteria and
finally ranks are given. This method is superior because it compares each
and every person on certain qualities and provides a ranking on that basis.

5.Graphic rating scale :-

Graphic rating scale refers to using specific factors to appraise people. The
entire appraisal is presented in the form of a chart. The chart contains
certain columns which indicate qualities which are being appraised and
other columns which specify the rank to be given.

Eg. Employee A Quality of work Quantity of work Intelligence Excellent Very

good good satisfactory poor The senior has to put a tick mark for a
particular quality along with the ranking. Such charts are prepared for every
employee. According to the department in which they work. Sometimes the
qualities which are judged may change depending upon the department.

6.Narrated essay :-

In this method the senior or the boss is supposed to write a narrative essay
describing the qualities of his junior. He may describe the employees
strength and weakness, analytical abilities etc. the narrative essay ends with
a recommendation for future promotion or for future incentives. Modern
methods Modern methods of appraisal are being increasingly used by
companies. Now days one of the striving feature that appraisal involves is,
the opinion of many people about the employee and in some cases
psychological test are used to analyze the ability of employee.

7.Paired Comparisons Method:-

In this method every person is comared traits-wise, with other person, one
at a time, the number of times one person is compared with other is tallied
on a piece o paper. Theses number help in yielding rank order of employees.

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Example:- if there are five perspn to be compared A’ s performance is first

compared with that N to find out who has better performance, then A is
compared with C,D & E in turn & performance is recorded.

8.Grading System:-

Under this system certain features like analytical ability, co-opeaativeness,

dependability, job-knowledge etc are selected for evaluation the employees
are given grades according to the judgement of the rater. The grades may be
such as

A-Outstanding

B-very Good

C-Satisfactory

D-Average

E-Below average etc.

9.Forced Distribution method:-

Some raters suffer from a constant error i.e. they rate of employees as only
good, average or poor. They thus do not evaluate the employees properly.
This system minimises rater’s bias so that all employees are not similarly
rated. This system is based on presumption that all employees can be
divided into five categories i.e. Outstanding, Above average, Average, Below
average & poor.

10.Nominations:-

Under the nominations method, appraisers are asked to identify the

exceptionally good & exceptionally poor performers, who are then singled
out for special treatment.

11.Work Sample Tests:-

In this method, employees are given from time to time, work related tests
which are then evaluated.

II. Modern method

1. Assessment centers :-

Assessment centers (AC) are places where the employee’s are assessed on
certain qualities talents and skills which they possess. This method is used
for selection as well as for appraisal. The people who attend assessment

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