HR Development Scope and Importance

HR Development and Training 1
III Semester Assignment
HR TRAINING AND DEVELOPMENT

INDEX
Question 1:....................................................................................................................................................2
(a) Explain the importance and scope of “Human Resource Development” in an organisation.............2
(b) What is meant by HRD Audit?..............................................................................................................4
(a) Explain the relevance of “Human Resource Planning” in an industry...............................................6
(b) What are the stages in the career of an employee? Explain each stage? ............................................7
(a) What is meant by Performance Appraisal? What are the objectives of a Performance Appraisal
System?........................................................................................................................................................10
(b) Explain the concept of 360 degree appraisal and its relevance in the industry................................11
Question 4:..................................................................................................................................................12
(a) Explain the process involved in an Appraisal Interview?..................................................................12
(b) What are the objectives of Potential Evaluation? ..............................................................................14
(a) What the main elements that should be included in an Employee Induction Programme?............15
(b) Explain the different stages of Systematic Recruitment Process.......................................................17
(a) Explain the importance of Job Description and Person Specification..............................................23
(b) Discuss the relevance of innovative Employee Reward System.........................................................25
Many such various schemes are innovatively discovered, within the limits of the organisation to
praise and understand the efforts of its employees. This ensures that the employees are treated with
respect and concern and motivates him to be a better, devoted and honest employee of the
organisation. These are rewards for his actions and a form of gratitude shown by the organisation to
him. .............................................................................................................................................................28
(a) Explain how the Training needs can be identified?............................................................................29
(b) What are the ways a Training programme can be evaluated?..........................................................32
Question 8:..................................................................................................................................................35
(a) What is system approach to training?.................................................................................................35
(b) Explain briefly different training and development methods............................................................37
(a) MBO:.....................................................................................................................................................39
(c) Selection Process:..................................................................................................................................40
Analyse anyone of the cases given in the study material..........................................................................42
Gayathri Shankarram Registration No. 200308104

Question 1:
(a) Explain the importance and scope of “Human Resource Development” in an organisation.
(b) What is meant by HRD Audit?
(a) Explain the importance and scope of “Human Resource Development” in an organisation.
Introduction:
HRD Means Developing The Human Resources Upgrading Their Skills And Extending Their Knowledge
Would Lead To Economic Development And Organizational Development. Therefore Human Resource
Development (HRD) Is Key To Optimize Utilization Of Human Intellectual Technological And
Entrepreneurial Skills.
(HRD) is the means used to support the mission of human resource management, which is to maximize
employee performance.
HRD is also defined by four functions:
• Education.
• Training.
• Development.
• Career Management.
Scope of HRD:
In 1970 Len Nadler published his now-classic book Developing Human Resources, in which he coined the
term "human resource development" (HRD). The term HRD provided a conceptual umbrella under which
the field began to unify, using the three-fold notion of training, education, and development. HRD provided
purpose and direction for the continued growth of the field: organized learning to provide the possibility of
performance change. It further idententified a core discipline from which a field of study could develop:
adult learning in the workplace. McLagans HRD studies in 1983 and 1989 reflected a shift taking place in
HRD work. In 1983 the assumptions in the competency models focused on change in technology. In 1987
Patricia McLagan proposed the following narrative definition of HRD:
HRD is the integrated use of training and development, career development, and organization
development to improve individual effectiveness
In HRD Emphasis On: -

• Improving Existing Skills and Exploring Potential Skills of an Individual.
• Attachment of Organizational and Individual Goals.
• Acquire or Sharpen Their Capabilities Required To Perform Various Obligations, Tasks and Functions.
• Develop Their Capabilities As Individual So That They May Be Able To Discover Their Potential And
Exploit them To Full Their Own and/or Organizational Development Purpose And
• To Develop An Organizational Culture Where Superior Subordinate Relationship Team Work And
Collaboration Among Different Sub Units Are Strong And Contribute to Organizational Wealth,
Dynamism And Pride To The Employees.
• Supporting the business
• Supporting (informal) learning
• Supporting knowledge sharing (as a special form of supporting informal learning)
• Development and coordination of training
• Changing HRD practices
• Develop their general capabilities as individuals, so as to discover and exploit their inner potentials for
their own organizational development purposes.

• Develop organization culture in which superior subordinate relationships, team work and, collaboration
among sub-units are strong and contribute to the professional well being, motivation and pride of
employees.
Objectives:
1. Maximise the utilisation of human resources for the achievement on individual and
organisational goals.
2. Provide an opportunity and comprehensive framework for the development of human
resources in an organisation for full expression of their talent and manifest potentials.
3. Develop constructive mind and an overall personality of the employees.
4. Develop the sense of team spirit, team work and inter team collaborations.
5. Develop the organisational health, culture and effectiveness.
6. Generate systematic information about human resources.
Importance of HRD: -
Human resource development (HRD) can be defined as a set of systematic and planned activities designed
by an organization to provide its members with the opportunities to learn necessary skills to meet current
and future job demands. Learning is at the core of all HRD efforts. HRD activities should begin when an
employee joins an organization and continue throughout his or her career, regardless of whether that
employee is an executive or a worker on an assembly line. HRD programs must respond to job changes and
integrate the long term plans and strategies of the organization to ensure the efficient and effective use of
re-sources.
All resources of production are important like machine, capital, money, land and building etc. in order to
ensure the achievement of production of a running factory. Over all supremacy has to be given to the
element of human resource. Man itself ensures the economical use of resources by applying wisdom.
Hence, any amount of efforts spent on training of human resources will yield its appropriate result and
higher productivity of the organisation The prospects and growth, productivity and profitability of an
organisation depend maximum on effective utilisation of such resources employed in the effort of achieving
company objectives. The achievement of an organisation can be seen as a result of cooperation and hard
work at all the levels of functioning of an organisation. Any huge capital investment in developing
infrastructure of a training institute and its running will, in the years to come, show its results in achieving
higher productivity and profitability.
HRD is a process in which the employees of an organization are continuously helped in a planned manner
• Acquire or sharpen their capabilities that are required perform various functions associated with their
present expected future roles.
• HRD helps in maximizing the utilization of human resource for the achievement of individual and
organizational goals.
• HRD helps to provide an opportunity and comprehensive framework for the development of human
resource in an organization for full expression of their talent and manifest potentials.
• HRD helps in increasing skills of employees it helps to develop the constructive mind and an overall
personality of the employees.
• HRD develop the sense of team spirit team work and inter team collaborations.
• HRD also used to develop the organizational health culture and effectiveness and to generate systematic
information about human resources.
• HRD helps in creating the healthy working environment it helps to build good employee, employees
relationship so that individual goals matches with organizational goal.

Conclusion:
Human resources are the assets which do not find a place for mentioning in the balance sheet of a company.
But it is one of the most important assets as human resources are a resource of production as well as they
are utilising other resources of production like a material, machines, money etc.
(b) What is meant by HRD Audit?

HRD audit starts with and understanding of the future business plans and corporate strategies while HRD
audit can be done even in organizations that look well formulated future plans and strategies it is most
effective as a tool when the organization already has such long term plans.
HRD audit is a comprehensive evaluation of the current human resource development strategies, structure,
systems, styles and skills in the context of the short and long-term business plans of a company. HRD audit
attempts to find out the future HRD needs of the company after assessing the current HRD activities and
inputs available. In the last few years the author along with his colleague Dr. Udai Pareek pioneered in
India, a methodology for auditing HRD function and implemented the same in a good number of Indian
companies.
HRD audit is cost-effective and can give many insights into a company's affairs. The auditors come for one
to two weeks, camp at the organization and give a report in a month's time. They normally make a
preliminary presentation at the end of their visit. HRD audit can lead to several benefits:
1. Getting the top management to think in terms of strategic and long-term business plans
It may sound ironical that the HRD audit should begin with such strategic plans, but in some cases it has
compelled the top management to think about such plans. While some companies started thinking about
them, a few others started sharing these plans with a larger number of persons. Since the employees cannot
participate in an HRD audit without some sharing of these plans, the audit has forced the top management
to share their plans which has resulted in increased employee involvement. In a few cases a new system of
annual planning and sharing of business plans with the management staff have been initiated to enable them
plan their own activities and competency development programmes.
2. Clarifying the role of the HRD department and line managers in HRD
In almost all cases the HRD audit has been found to draw the attention of employees at various levels to the
important role of the HRD department and current as well as the future. Enhanced role clarity of HRD
department and HRD function and increased understanding of line managers about their HRD role have
been the uniform results of HRD audit. The degree may vary from organization to organization depending
on other factors.
3. Streamlining of other management practices
Most often HRD audit identifies the strengths and weaknesses in the some of the management systems
existing in the organization. It also points out to the absence of systems that can enhance human
productivity and utilisation of the existing competency base; for example, the MIS, rules and procedures,
etc. which may have an effect on the functioning of the employees. In a few cases an HRD audit has helped
the management look at some of these sub-systems and work procedures. Preparation of a manual of
delegation of powers, clarification of roles and responsibilities, developing or streamlining the manuals of
financial and accounting procedures and systems, strengthening the information systems, and sharing of
information are some of the resultant activities in this direction.
4. Better recruitment policies and more professional staff
An HRD audit points out to the competence base required. It sets the stage and gives direction for the
competency requirements of employees at various levels and thus provides a base for recruitment policies
and procedures. In some companies, it has resulted in strengthening the recruitment policies and procedures.
As a result of HRD audit, new recruitment and retention strategies have been worked out.

5. Changes in the styles of top management

One of the objectives of HRD is to also create a learning organization. A learning culture can be created
only if the top managers of the company exhibit an HRD style of management. Such a style requires an
empowering attitude, participative style of management, and an ability to convert and use mistakes,
conflicts and problems as learning opportunities. Some of the top-level managers in India have been found
to block employee motivation and learning through coercive, autocratic and even paternalistic styles of
management. In such cases the HRD audit has pointed out the difficulties in developing and preparing the
employees for the future. This has helped to provide subtle feedback to the top management and to initiate a
change process.
6. Improvements in HRD systems
The HRD audit has helped most of the organisations in taking stock of the effectiveness of their HRD
systems and in designing or re-designing the HRD systems. The most frequently changed or renewed
systems include performance appraisal, induction training, job-rotation, career planning and promotion
policies, mentoring, communication, and training.
7. More planning and more cost-effective training
HRD audits have been found to raise questions about the returns on training. One of the aspects emphasised
in the HRD audit is to calculate the investments made in training and ask questions about he returns. The
process of identifying training needs and utilisation of training inputs and learning for organisation growth
and development are assessed. As direct investments are made in training, any cost-benefit analysis draws
the attention of the top management and HRD managers to review the training function with relative ease.
One organization strengthened its training function by introducing a new system of post-training follow-up
and dissemination of knowledge to others through seminars and action plans. Many organisations have
developed training policies and systematised their training function. Assessment of training needs has also
become more scientific in these organisations.
8. Increased focus on human resources and human competencies
One of the results of an HRD audit is to focus on new knowledge, attitudes and skills required by the
employees in the organization. Comments are made about the technical, managerial, human and conceptual
competencies of the staff at various levels. This differentiation has been found to help organisations identify
and focus sharply on the competency requirements and gaps. The audit establishes a system of role clarity
and fixing of accountabilities. This can take place through separate role clarity exercises or through the
development of an appropriate performance appraisal system. In any case the attention of the organization
gets focused on developing the competency base of the organization. More sensitivity are developed to the
missing aspects of competencies. For example, one organization has been found to neglect human relations
competencies of their staff, resulting in a large number of human Problems leading to wastage of time.
Some of these got streamlined and various HRD policies also got strengthened.
9. Strengthening accountabilities through appraisal systems and other mechanisms
An HRD audit can give significant inputs about the existing state of the accountabilities of employees. This
gets assessed through performance appraisals as well as through the work culture and other cultural
dimensions. A number of organisations have introduced systems of performance planning, sharing of
expectations and documenting the accountabilities of staff.
10. TQM interventions
Quality improvements and establishing TQM systems require a high degree of employee involvement. In a
number of cases the HRD audit has pointed out to the linkages between TQM and other developmental
programmes and helped in strengthening the same. Due to improvements in the training system, group work
and appraisal systems, TQM programmes have also improved. In a few organisations the performance
appraisals have been so changed as to integrate quality aspects and internal customer satisfaction
dimensions into the appraisal system. Thus, an HRD audit leads to the strengthening of the quality systems.

Question 2:
(a) Explain the relevance of “Human Resource Planning” in an industry
(b) What are the stages in the career of an employee? Explain each stage.
(a) Explain the relevance of “Human Resource Planning” in an industry

Human resource planning is the process by which management ensures that it has the right personnel, who
are capable of completing those tasks that help the organization reach its objectives.
(a) Current assessment involves reviewing the organization's current human resource status.
• This is typically done through a human resource inventory.
• Another part of the current assessment is the job analysis which is an assessment that defines jobs and the
behaviors necessary to perform them.
• From this information, management can draw up a job description which is a written statement of what a
jobholder does, how it is done, and why it is done.
• Also, management can develop a job specification which is a statement of the minimum acceptable
qualifications that an incumbent must possess to perform a given job successfully.
(b)Future assessment involves a determination of future human resource needs by looking at the
organization's objectives and strategies.
(c)Developing a future program involves matching estimates of shortages of needed personnel with
forecasts of future labor supply.
The relevance of Human Resource Planning is described as follows –
Determine recruitment needs: - An essential prerequisite to the process of recruitment is to avoid

problems of unexpected shortage, wastage, blockage in the promotion flow and needless redundancies.
Determining training needs: - This is fundamentally important to planning training programmed for
which it is necessary to not only quality but also quantity in terms of the skills required by the organization.
Management development: - A succession of trained and experienced manager is essential to the
effectiveness of the organization and this depends on accurate information about present and future
requirement in all management parts.
Balancing the cost between the utilization of plant and workforce: - This in values comparing costs of
these two resources in different combinations and selecting the optimum. This is especially important when
costing projects.
Industrial relations: - The business plan will of necessity make assumptions about productivity of the
human resource. it will have an impact on the organization industrial relations strategies
In practice, hr planning is concerned with the demand and supply of labor and problems arising from the
process of reconciling these factors. any system has to be based on analyses of demand and supply and the
plans and decisions, which follow these analyses.
A system of human resource planning

The main elements of a system are:
• Defining the organisational objectives.
• Assessing the future requirements to meet objectives.
• Assessing the current resources and availability of resources in the future.
• Producing and implementing the plan in detail, i.e. balancing forecasts for demand and supply, related to
short term and/or long term timescales.
• Monitoring the system and amending as required.

(b) What are the stages in the career of an employee? Explain each stage?
A career is defined as a sequence of positions occupied by a person during the course of a lifetime.
The popular way of analyzing the career is to look at them as made up of stages. There are five stage
models that is applicable to the most people during their work life.
Career stages model is the most popular way to view careers.
• Exploration is when individuals are exploring possible career options and making critical choices.
• Establishment begins with the search for work and getting that first job.
• Mid-career is when an individual is no longer seen as a "learner."
• Late career is when an individual can share his or her knowledge with others in the organization.
• Decline is when an individual leaves the work force.
Career stages:
Stage 1: Exploration
This stage includes a person’s earliest recollection of “what I want to be when I grow up” and the revisions
on that dream as the person commits to his or her career work. This stage is usually heavily affected by
spoken and unspoken messages that people receive from family or significant others regarding what their
life path or journey should be. The messages are usually from a person’s elders about their desire for the
type of work the person should do, where he or she should live, and spiritual dimensions and lifestyle such
as choice of a partner, number of children, and so forth.
Many to the critical choices individual make about their carrier are made prior to every entering the work
on a paid basis our parents relatives, teachers as well as what we see on television and films very early in
our parents their interests, their aspirations and their financial resources will be heavy factors in determining
out planets, their interests, their aspirations and their financial resources will be heavy factors in determine
out perception of what carriers are available.
The exploration period ends for most in our mid-twenties as we get employed. From an organisation stand
point. This stage has less relevance, since it occurs prior to employment. It is of course not irrelevant. The
exploration period is when a number of expectations abt ones career are developed, many of which are
unrealistic.
Stage 2: Establishment
The establishment period begins with the search for work and includes getting your first job being accepted
by your peers, learning the job and gaining the first tangible evidence of success of or failure in the 'real
world'.
It is a time that brings the uncertainties and anxieties. Additionally it also marked by the making of
mistakes, learning from these mistakes and gradual assumption of increased responsibilities. However
individuals in this stage have yet to reach their peak productivity and rarely are they given work assignment
that carry great power or high stages.
At this stage, people bring with them a list of potential life and work options. The activities of this stage
help people assess and understand their competency strengths; personality traits; abilities; interests;
learning-style, work-style, and work-environment preferences; and personal, interpersonal, work, and
cultural values. At this stage, people usually receive detailed information from having completed formal or
informal appraisal instruments, checklists, simulations, interviews, and so forth. The output contains highly
specific information about a person, including the effect of his or her value systems on personal
preferences. People can use that appraisal information to revise the options they developed in the
exploration stage.
Stage 3: Mid-Career
Most people do not face their first career dilemmas until they reach the mid-carrier stage this is a time
where individual may continue their prior improvements in performance level off or begin to deteriorate. At

this stage the first dilemma is accepting that on is no longer seen as a learner. Mistakes carry greater
penalty. At this point in a career one is expected to have moved beyond apprenticeship to journeyman
status. To those who make the successful transition go greater responsibilities and rewards. For others it
may be a time of reassessment, job changes, adjustment of priorities or the pursuit of alternative life styles.
This is a delicate stage of career work because the outputs must be grounded in reality to the greatest degree
possible. If they aren’t realistic, people are likely to experience frustration or disappointment later on. That
could cause them to be discouraged, which could lead to abandoning any further effort. Thus, the decision-
making process should result in a set of realistic career work goals, given the information available at the
time.
Stage 4: Late Career
For those who continue to grow through the mid-carrier stage the late carrier usually is a pleasant time
when one is allowed the luxury to relax a bit and enjoy playing the part of the elder state man. It is a time
their one rest on one's laurels and both in the respect given by younger employees. During the late career
days, individuals are no longer learning nor is it expected that they should out do their levels of
performance from previous years. Their value to the organisation lies heavily in their judgment, built up
over so many years and through varied experiences and sharing with and teaching others based on the
knowledge they have gained.
For those who have stagnated or deteriorated during the previous stage the late career brings the reality that
they will not have an everlasting impact or change the world as they had once thought. It is a time when
individuals recognize that they have decreased work mobility and may be locked to their current job. One
begins to look forward to retirement and the opportunities of doing something different life off the job is
likely lot carry for greater importance then it did in earlier days.
Stage 5: Decline
The final stage in one's carrier is difficult for everyone but ironically is probably hardest on those who had
continued successes in earlier stages. After several decades of continued achievements and high level of
performance, time for retirement has reached. These individuals are forced to step out of the limelight and
give up major component of their identity. For the most performers or those who have seen their
performance deteriorate over the years. It may be pleasant time. The frustrations that have been associated
with work will be left behind.
Adjustments of course will have to be made regardless of whether one is leaving a sparkling career or a
dismal career. The regimentation that work provides will no longer be there. Responsibilities will be fewer
in life and will be less structured. As a result it is a difficult stage for anyone to confront.

Stages in career Development
High
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5 25 35 50 60 70
AGE
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Keys to a successful management career include the following aspects.

• Select your first job judiciously.
• Do good work.
• Present the right image.
• Learn the power structure.
• Gain control of organizational resources.
• Stay visible.
• Don't stay too long in your first job.
• Find a mentor.
• Support your boss.
• Stay mobile.
• Think laterally.
• Think of your career in terms of skills you're acquiring and continue upgrading those skills.
• Work harder than ever at developing a network.

Question 3:
System?
(b) Explain the concept of 360 degree appraisal and its relevance in the industry.
System?
Performance appraisal may be defined as a structured formal interaction between a subordinate and
supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work
performance of the subordinate is examined and discussed, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or indirectly, to help
determine reward outcomes. That is, the appraisal results are used to identify the better performing
employees who should get the majority of available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who may require some form
of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be
aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)
Performance appraisal for evaluation using the traditional approach has served the following purposes:
1. Promotion, separation, and transfer decisions
2. Feedback to the employee regarding how the organization viewed the employee's performance
3. Evaluations of relative contributions made by individuals and entire departments in achieving
higher level organization goals
4. Criteria for evaluating the effectiveness of selection and placement decisions, including the
relevance of the information used in the decisions within the organization
5. Reward decisions, including merit increases, promotions, and other rewards
6. Ascertaining and diagnosing training and development decisions
7. Criteria for evaluating the success of training and development decisions
8. Information upon which work scheduling plans, budgeting, and human resources planning can be
used
Objectives of Appraisal System:

1. To give employees the opportunity to discuss performance and performance standards
regularly with their supervisor.
2. To provide the supervisors with a means of identifying the strengths and weaknesses of an
employee’s performance.
3. To provide a format enabling the supervisor to recommend a specific program design to
help an employee improve performance.
4. To provide a basis of salary recommendations.
5. Salary Administration
6. Performance Feedback
7. Identification of Individual Strengths and Weaknesses
8. Recognition of Individual Performance
9. Determination of Promotion
10. Identification of Poor Performance
11. Assistance In Goal Identification
12. Evaluation Of Goal Achievement
13. Identification of Individual Training Needs

14. Determination of Organizational Training Needs.

(b) Explain the concept of 360 degree appraisal and its relevance in the industry.
Typically, performance appraisal has been limited to a feedback process between employees and
supervisors. However, with the increased focus on teamwork, employee development, and customer
service, the emphasis has shifted to employee feedback from the full circle of sources depicted in the
diagram below. This multiple-input approach to performance feedback is sometimes called “360-degree
assessment” to connote that full circle.
The 360 degree appraisal is based upon performance feedback from multiple sources. The term 360 degree
refers to feedback from all directions, rather than dependence on an employee's supervisor or other single
source. In a 360 degree appraisal, feedback may come from peers, staff, internal customers, external
customers, supervisors, and the individual. Initially, 360 degree appraisals were conducted in writing and
required complex and time consuming procedures for the assessments to be successful.
As name implies, 360 degree feedback is intended to provide employee with as accurate a view of their
performance as possible by getting input from all angles = superiors beers subordinates customer and the
like although in the beginning 360 degree systems were purely developmental and were restricted mainly to
management and carrier development they have migrated to performance appraisal and other administrative
applications.
Pros: -
 The system is more comprehensive in that response are gathered from multiple perspectives
 Quality of information better (quality of respondents is more important than quantity)
 It complements TQM intestines by emphasizing internal/external customer and teams.
 It may lessen bias/prejudice since feedback comes from more people not one individual.
 Feedback from peers and other may increase employee self-development.
Cons: -
 The system complex in combining all the responses
 Feedback can be intimidating and cause resentment if employee feels the respondents have "ganged up
 These may be conflicting opinions, though they may all be accurate from the respective standpoints.
 The system requires training to work effectively.
 Employees may collude or game the system by giving invalid evaluation to one another.
 Appraisers may not be accountable if their evaluations are anonymous.
Safeguards to be observed to ensure maximum quality and acceptance:
 Assure anonymity
 Make respondents accountable
 Prevent " gaming " of the system
 Use statistical procedures
 Identify and quantify biases
Based on the experience of companies it appears as though 360 degree feedback can provide a valuable
approach to performance appraisal its success, as with any appraisal technique depends on how managers
use the information and how fairly employees are treated.

Question 4:
(a) Explain the process involved in an Appraisal Interview?
(b) What are the objectives of Potential Evaluation?
(a) Explain the process involved in an Appraisal Interview?

Appraisals have three main purposes. These are often misunderstood. The first is to measure the extent to
which an individual may be awarded a salary increase compared with his or her peers. This is the reward
review component.
The second purpose of an appraisal is to identify any training needs and, if appropriate, to provide training
and development to enable an individual to help the organisation to achieve its objectives. This is the
performance review component.
Finally, appraisals are also important to aid an individual's career development by attempting to predict
work that the individual may be capable of in the future. This is the potential review component.
Employees often question the value and usefulness of the time and effort taken up by an appraisal.
However, it establishes key results that an individual needs to achieve within a time period while also
comparing the individual's performance against a set and established standard. The employee is not the only
beneficiary - the organisation benefits through identifying employees for promotion, noting areas for
individual improvement, and by using the system as a basis for human resource planning.
Conducting the appraisal interview:

There is often misunderstanding as to how an appraisal should be conducted. Appraisees sometimes
perceive their annual appraisal as a threat. However, this can be overcome if the appraisal system is well-
constructed, and seen to be fair to the individual and consistent across the organisation. A typical negative
response to appraisals is that they are confrontational. This is often due to a lack of agreement on
performance or poor explanation by management. Additionally, it is sometimes seen as a judgement - a
one-sided process based entirely on the manager's perspective. At the other extreme it is simply regarded as
a chat.
Process Involved In Appraisal Interview: -
Ask for a self-assessment: -
It is useful to have employees evaluate their own performance prior to appraisal interview. Eve if this
information is not used formally, the self appraisal starts the employee thinking about his or her
accomplishments. Self appraisal also ensures that against what criteria he or she is being evaluated, thus
eliminating potential surprises.
It gives employees a form of self-assessment according to it employee has evaluated his or her own
performance the interview can be used to discuss those area where the manager and the employee have
reached different conclusion not so much to resolve the truth but to work towards a resolution of problem.
Invite participation: -
The core purpose of a performance appraisal interview is to initiate a dialogue that will help an employee
improve her or his performance. To the extent that an employee is an active participant in that discussion,
the more likely it is that the roof cause and obstacles to performance will be uncovered and the more likely
it is that constructive ideas for improvement will be raised. Research evidence suggests that participation is
strongly released to an employee’s satisfaction with the appraisal feedback, the extent to which the
employee believes it is fair and useful as well as his/her intention to improve performance. As a thumb rule,
the supervisors should spend 30-35 percent of time talking during the interview, the rest of the time he
should be listening to employees’ respond to questions.
Express appreciation: -

Praise is a powerful motivator and in an appraisal interview, particularly employees are seeking positive
feedback it is frequently beneficial to start the appraisal interview by expressing appreciation for what the
employee has done well. in this way he or she may be less defensive and more likely to talk about aspects
of the job that are not going so well.
Minimize criticism: -
Employees who have a good relationship with their managers may be able to handle criticism better than
those who do not if an employee has many areas in need for improvement, managers should focus on those
few objectives issues that are most problematic or most important to the job some tips for using criticism
constructively include the following.
 Consider whether it is really necessary
 Don't exaggerate
 Make improvement your goal
Changing the behavior not the person:
When dealing with problem area, in particular it is important to remember that it is not the person who is
bad, but the actions exhibited by him. Avoid suggestions and personal traits to change; instead suggestion
of more acceptable ways of performing would prove effective. It is difficult for employee to change who
they are but it will e easier for them to change the way they act.
Focus on solving problems: -
In addressing performance issues, it is frequently tempting to get into the blame game in which both
manager and employee enter into a potentially endless discussion of why a situation has arises. Frequently
solving problems requires and analysis of the causes but ultimately the appraisal interview should be
directed devising a solution to the problem.
Establish goals:-
Major portion of the interview is to make plans for improvement, it is important to focus the interviews
attention of future rather than past. In setting goals with an employee, the manager should:
 Emphasize strengths on which employee can build rather than weaknesses to overcome.
 Concentrate on opportunities for growth that exists within the frame work of the employee’s present
position.
 Limit plans for growth to a few important items that can be accomplished within a reasonable period of
time.
 Establish specific action plans that spell out how each goal will be achieved. These action plans may
also include a list of contact, resources, and timetables for follow up.
Follow up:-
Ideally performance feedback should be an ongoing part of a manager’s job. Feedback is most useful when
it is immediate and specific to a particular situation. Unfortunately both manager and employee are
generally happy to finish interview and file away. Better approach is to have informal talks periodically to
follow up on issues raised during the interview.
Factors that influence Performance
Motivation:
 Career ambition
 Employee conflict
 Frustration Environment: Perf = f (A, M, E)
 Fairness/ Satisfaction  Equipment. Materials
 Goals/Expectations  Job design
 Economic condition
 Unions
 Rules and policies Ability:
 Management support  Technical skills
 Laws and regulations  Interpersonal skills
 Problem solving skills
 Analytical skills
 Communication skills
 Physical limitations.
Assessing rewards:
The reward review is the process by which managers have to decide who deserves increments, bonus and
other tangible incentives based on individual performance. It is potentially uncomfortable and contentious
situation because inevitable there will be winner and losers. These problems are likely to occur, however
sound the schemes may be but it is obviously vitally important to give thought in preparation and practice to
ensure that any scheme for the reward review is fair and efficient.
(b) What are the objectives of Potential Evaluation?

Potential-evaluation measures the aptitude of an employee (or a candidate), highlights his personality,
character traits, and the strong-points of his professional profile.
The evaluation aids to orientate him towards the functions in which he can most fully use his capacity and
talents. The evaluation optimizes the use of the employee and avoids errors in promotion.
Potential evaluation refers to an individuals behavior, skills, abilities in meeting the requirements of the job
which the individual currently holds on the other hand potential refers to the abilities present but not
currently utilized or not required to that degree in the present job as would be required in possible future
higher jobs which the individual may hold. it refers to the abilities to discharge higher responsibilities in
future roles.
Objective of Potential Evaluation: -

Potential evaluation poses a number of problems, nobody has ever questioned the need for assessment of
potential for vital personnel decision it is in fact pre-requisite to the very survival of an organization. It is an
important area because people have to be prepared to take up higher responsibilities. It also helps in
identifying high fusers and the dead wood early. Some of the major areas where potential evaluation plays a
critical role and help in handling the employees of organization.
 Promotions
 Transfer
 Placement
 Training And Development
 Carrier Planning
 Succession Planning
 Salary Increase
 Organization Planning

Question 5:
(a) What the main elements that should be included in an Employee Induction Programme?
(b) Explain the different stages of Systematic Recruitment Process.
(a) What the main elements that should be included in an Employee Induction Programme?
Employee induction and orientation is as much about creating an impression as it is about providing
information. The impressions that you create become information that employees act on.
And before they can become a productive member of the workforce they do need a lot of information. Do
you want them to do it the way that always did it? Or do you have a better way? If they have a better way,
do you want to know about it?
When a new employee commences his job, an effective induction process is essential to maintain their
enthusiasm, motivation and enabling them to get on with the work they were employed to do. Induction is a
major factor in that employee's ability to perform effectively and their desire to remain with the
organisation. An inadequate induction - one that is not designed to meet either their or our needs - may
demotivate the person before they have even started!
The induction phase is broadly classified into three elements: Training Work Experience and Social
Adaptation
INDUCTION PROGRAM
Training Social Adaptation
Work Experience
Training:
Induction training is mainly vocational and designed in order to give new employees the skills and
knowledge required for productive employment. It may take the form of short Full-Time courses or very
much longer programmes where a high level of performance is essential, such as: During engineering
apprenticeships, Flying training, etc. Sometimes induction training is given on the job itself, such as Call-
Center training, BPO, etc. More often than not the programme is a combination of both forms of training.
Work Experience:
This covers a wide range of possibilities and is a matter of each organisation to decide whether new
employees remain with one occupation or are rotated to meet particular requirements of experience, am
imaginative approach is necessary to widen new employee’s knowledge of their organisational environment
as much as possible. This could include a schedule of visits or short attachments to other units. Increased
knowledge of the organisation will help to develop confidence and is a significant means of stimulating
interest and motivation.

Social Adaptation:
As we have already seen, this is a particular source of difficulty in the induction phase. Managers cannot
expect to control subtle interplay of intra-group relationships, but they need to develop a psychological
awareness of group and individual behaviour in order to assist their groups, the ability to anticipate where
interpersonal difficulties could arise and how the social forces within the group could be used to advantage.
In this way, the varied experience and strengths of the different members of the team may be used skillfully
to help newcomers to adapt. The more members of the group that can be usefully involved in this process
the better.
Finally, because of the complexity and variability of the initial phase of employment from the individual’s
point of view, employers cannot naively assume that a formally planned induction programme coincides
with each individual employee’s induction phase, as though the programme covers a fixed period at the end
of which new employees cross as it were a boundary that separates the novitiate from null membership. The
process of socializing is infinitely subtle and varied with each individual. Although new employees often
undertake part of the induction programme together, their induction into the organisation still has to be
recognised as an essentially individual process.
Induction training provides many benefits:

 Makes the employee aware of the health and safety hazards of the job and how these affected the safety
of others. .
 Helps to reduce the high risk potential of injuries to young employees, new/transferred or re-hired
employees, and seasonal or temporary employees.
 Helps to meet legal requirements.
 Helps to reduce the anxiety or stress experienced in a new or changed working environment or
situation.
 Helps to balance the company’s need for productivity with the worker’s needs for self esteem
and security.

Summary of main elements of an induction

Initial Interviews__________________________
Conducted by the line manager and HRM, covering
Details of the induction program

Organisational objective and functions
Personal objectives and job
Work conditions and facilities
Personal needs problems etc.
Training:__________ Training:___________
Work Experience:_____
On the job specific Assistance by the manager
courses. Job variety visits and and members of the work
( Internal/External). attachments group
Follow up interviews:_______________________
Conducted by the line manager and personal officer in

the form of performance appraisal and career
development interviews
Check programmes and general welfare
(b) Explain the different stages of Systematic Recruitment Process.

Interviews are a crucial part of the recruitment process for most organisations. Usually applicants are
interviewed after sending in an application form or CV for a particular position. The purpose of an
interview is to give the selector a chance to assess you and for you to demonstrate your abilities and
personality. It is also an opportunity for you to assess them and to make sure their organisation and the
position are what you want. Not to forget that to have reached the interview stage you have already
impressed the recruiters and they believe you have the ability to do the job. All you need to do is show them
they are right!

The recruitment process for most organisations is designed along the same path; applications are received,
either via an online application form, a postal form or a CV. Candidates are short listed and invited for
interview. The interview format can vary considerably, as we discuss later, and can include assessment
centers. The number of interviews also varies. Some companies are satisfied after just one interview
whereas others will want to bring back a further shortlist of candidates for one or more interviews. If you
are successful at the interview stage you will receive an official letter offering you the job. This information
describes what you can expect at interviews and assessment centers, and takes you through to making a
decision about any offers that may result.
HR best practice has always been that organisations should not discriminate in their recruitment procedures,
and should always strive to recruit and retain the most qualified staff. Most qualified was never to be
interpreted as indicating a preferred race, age or gender for the job. A diverse workforce has always been a
key feature of the best practice organisation.
As such, those who shudder when they hear reference made to legal recruitment procedures, should actually
see this as an opportunity to get their recruitment function in line with HR best practice.
General Recruitment policy:

(i) A company should recognize its staff as being fundamental to its success. A strategic and professional
approach to recruitment processes help enable the organisation to attract and appoint staff with the
necessary skills and attributes to fulfill its strategic aims, and support the organisational values.
(ii) The organisation must be committed to ensuring that the recruitment and selection of staff is conducted
in a manner that is systematic, efficient, and effective and promotes equality of opportunity.
(iii) Recruitment should be treated as a key public relations exercise as the way it is managed affects the
organisation’s image, and consequently its ability to attract and appoint high caliber staff.
(iv) This policy has been designed to provide a flexible framework which promotes good practice, adopts a
proactive approach to equality and diversity issues and supports fully the organisation’s core business.
(v) Guidelines which form the basis for the implementation of this policy are also provided. They have been
designed to maximise flexibility to meet the needs of all areas. For these reasons, while still ensuring that
the organisation complies with relevant legislation any significant variations in practice must be discussed
with the Senior HR Advisers to minimise risk to the organisation
(vi) Professional advice and support is available at all stages of the recruitment process from the Senior HR
Advisers.

Systematic recruitment process flow chart
Job Description
Person specification Sourcing Strategy
Internal/External Advertisement
Agency/Consultant/Search
Send Application form

Request CV
Pre - Selection
Short List
Tests
Interviewing/Group Selections
References/Medical
Appointment
Induction programme
Follow-up
Steps of Recruitment:
Step 1: Vacancy
This stage decides what resources are required. Details of requirements will emerge from the compilation
and regular revision of HR plan. In practice job vacancy may occur when:
1. An organisation or work unit is set up.
2. An employee resigns from the post.
3. An employee reaches retirement.
4. An organisation takes place through changes in policy.
5. Technology
6. Mergers

7. Acquisitions.
Because of the subtle changes that take place within an organisation the existence and nature of job
vacancies should be accepted.
The first step in any recruitment process is to define the job requirements. A job and person specification
should be prepared, bearing in mind the actual requirements of the job, for example required qualifications,
skills and experience. It is allowable to include desired qualifications, but be careful to avoid mentioning
“requirements” which are not actually necessary for the job, or which may indirectly exclude a portion of
society
Step 2: Sources
This stage concerns with the general questions about supply and availability of resources and particular
avenues through which these are likely to be obtained. The human resource plan is to provide general
information about the types of factor that influence the supply of labour at macro and micro levels. Even
when it is feasible to fill job vacancies from within the organisation, transfers and promotions which this
usually involves will more often not produce a vacancy at the end of the chain. Nevertheless filling of
vacancies internally should always be given careful considerations.
Care should always be exercised when using images or photographs as a tool in recruitment advertising. It
is important that these do not reflect negative stereotypes, which may indicate an intention to discriminate.
On the other hand, correct use of imagery can enhance an organisations perception as an equal opportunities
employer. Many employers now include an “equal opportunities employer” statement in their
advertisements, which indicates an acknowledgement of, and compliance with, equality legislation.
There are 2 types of recruitment noted while sourcing the resources:

1. Internal recruitment:
 Existing employees are known to the organisation are generally familiar with the customs and
practices.
 The costs and time that external recruitment, selection and induction procedures consume can be
reduced.
 Internal recruitment to fill vacancies may be used as a means of career development, widening the
opportunities and stimulating motivation among existing employees.
2. External employees:
When organisation has to use external sources, 2 means of conducting the search is done:
 Through employment and consultancies and agencies
 By contacting the public directly through advertisements in newspaper, journals, posters, radio,
and television and on the internet.
Step 3: Application form/Resume/CV
Many organisations use application forms in an effort to ensure an equal footing for all applicants, while at
the same time also ensuring that all required information is captured in relation to the position. Again it is
essential that the form is prepared in a style which complies with the legislation. Questions which could be
seen as discriminatory against potential candidates include those requesting information regarding marital
status, family status and nationality. Questions should be carefully worded to avoid any hint of
discriminatory practices, and it is often worth including a statement indicating that the organisation is an
equal opportunities employer.
Design of an appropriate application form will clearly depend on particular situation and needs.
Different forms may be necessary for different kinds of work. The items that are normally needed
in application forms are:
 Job title

 Applicant’s full name

 Date of birth
 Contact address and phone number
 Nationality
 Education
 Academic qualifications
 Professional qualifications
 Present employment – details
 Previous employment – details in chronological order from latest
 Main interests
 Health
 Certifications
 Awards and achievements
 References
Step 4: Processing and assessing application (Pre-selection)
Once completed applications have been received, the next step in the process is to screen them in order to
identify those most suitable for interview for the post. This process is usually conducted by the hiring
manager in conjunction with HR. The screening involves cross-checking the applications against the job
description and choosing the most suitable candidates for interview.
Another intervention which HR may take in order to ensure equity, would be to reformat CV’s, in order that
they remove information which could result in discriminatory selection by those screening them. Some
organisations have a practice of removing surnames, addresses, marital status, date of birth, and any other
details which may lead to discriminatory selection prior to passing them on to the managers selecting
interviewees.
Step5: Short listing
Short listing must be undertaken by at least two individuals who are involved in the interviewing process.
Interviews should normally be conducted by at least two people, and all interviews for one post must be
conducted by the same people. In order to promote equality of opportunity selection committees should,
wherever possible, be of mixed race and gender composition.
A further important point has to be made concerns the need of flexibility in making final decisions about
acceptance or rejections. Best is not be stubbornly inflexible about length of experience, age etc. when job
requirements are established then room must always be left to decide the individual cases on their merits.
Finally a word needs to be said about the use of testimonials and referee reports. Referee reports are usually
required as supplementary evidence for use in the assessment of candidates during selection procedure.
Employees are often more frank on telephone conversations so over-emphasis must note on written
reference.
Step6: Tests
Any skills tests (e.g. presentations, in-tray exercises) must be directly related to the role and measured
against objective criteria, and presentations for one post must be assessed by the same persons. Candidates
must be notified of the details of any skills test when they are invited for interview and the selection process
for lectureships and senior lectureships must include a presentation or short lecture.
Step 7: Interviewing/Group selections
The interview should always be viewed as a two way process. Not only is it an opportunity for the
candidate to present themselves in pursuit of the position, but it is also an opportunity to ensure that the
candidate has a positive experience of the organisation. Part of this experience should be that the
organisation presents itself as an equal opportunities employer. Studies have shown that an unsuccessful
applicant, who feels that they were treated fairly by a company, is more likely to reapply should another
position arise in the future.

The first step in ensuring that interviews are conducted within the law is in the selection of the interviewer,
or interview panel. Where an interview panel is used it is worth trying to form the panel in order that it
reflects the diverse make up of the applicant pool, i.e. there should be gender balance. As a minimum,
organisations should attempt to have one woman and one man on a panel to ensure that gender
discrimination is avoided.
The next step is to ensure that the interviewers are trained in interview techniques. This helps avoid them
asking questions which could be deemed unnecessary, and potentially discriminatory. A member of HR
should always attend interviews, and where an interviewer has not been trained in interviewing techniques,
this becomes even more important. Agreeing questions in advance of the meeting avoids any discriminatory
questions being asked out of the blue. The whole interview process should be transparent and interview
notes should reflect this. Interview questions must relate to the job requirements as exemplified in the
person specification and the candidate’s suitability for the position. The person specification should be used
as the basis for determining the interview questions.
Step8: References/Medical
The next step in the recruiting process is investigation of those applicants who appear to be potential
employees. This may involve contacting the former organisations to confirm the candidate’s work record
and obtain their appraisal of his/her performance, contacting other job related and personal references and
verifying the educational accomplishments shown on application. Background investigation has major
implications.
Last step prior to appointment decision may be the medical examination of the person. For most jobs, this is
a screening device in selection process. It is assumed that the applicant can pass the physical examination
however it is intended to screen out those individuals who are unable to comply physically with the
requirements of the job and the organisation.
Step 9: Appointment
The individuals who perform successfully on the employment tests, interview and reference/medical
examination are chosen to be appointed into the organisation formally through a legally drafted
Appointment order. For administrative purposed the draft should be made by the personnel department, but
their roles should only be administrative.
At the end of the recruitment process all records must be handed to the Human Resources Department who
will retain them for six months in case of requests for feedback or the threat of litigation.
Offers of employment are conditional upon receipt of satisfactory references, medical assessment and any
other appropriate checks. This normally excludes visiting and other casual appointments of less than three
months duration. In accordance with employment legislation, appointments will only be offered on a fixed
term basis where objective grounds exist for not making the appointment permanent.
Step 10: Induction
This step involves formal introduction of the employee to the organisation. The employee is given an
overview of all the departments within the organisation, his role and designation, Training requirements and
other elements which the new comer has to absorb. This also paves way for the employee to understand the
rules and regulation of the organisation which he is required to follow.
Step 11: Follow up
The last step in the recruitment process is the follow up on the employee, who has moved into the
organisation successfully after all the above processes. This gives information about the performance of the
employee in the organisation, his likes and dislikes, requirements (if any). This completes the process of
recruitment, with successfully absorbing an employee with the laid regulations and benefits and perks, etc.

Question 6:
(a) Explain the importance of Job Description and Person Specification.
(b) Discuss the relevance of innovative Employee Reward System.
(a) Explain the importance of Job Description and Person Specification.

Job Description
A job description describes the major areas of an employee's job or position. A good job description begins
with a careful analysis of the important facts about a job, such as the individual tasks involved, the methods
used to complete the tasks, the purpose and responsibilities of the job, the relationship of the job to other
jobs, and the qualifications needed for the job.
It's important to make a job description practical by keeping it dynamic, functional, and current. Don't get
stuck with an inflexible job description! A poor job description will keep an organisation and its employees
away from trying anything new and learning how to perform their job more productively. A well-written,
practical job description will help you avoid hearing a refusal to carry out a relevant assignment because "it
isn't in my job description."
Realistically speaking, many jobs are subject to change due either to personal growth, organizational
development, and/or the evolution of new technologies. Flexible job descriptions will encourage your
employees to grow within their positions and learn how to make larger contributions to your company. For
example: Is your office manager stuck "routinely ordering office supplies for the company and keeping the
storage closet well stocked " or is she/he "developing and implementing a system of ordering office
supplies that promotes cost savings and efficiency within the organization?"
When writing a job description, it should be kept in mind that the job description will serve as a major basis
for outlining job training or conducting future job evaluations.
A job description should include a:
• Job Title
• Job Objective or Overall Purpose Statement - This statement is generally a summary designed to
orient the reader to the general nature, level, purpose, and objective of the job. The summary should
describe the broad function and scope of the position and be no longer than three to four sentences.
• List of Duties or Tasks Performed - The list contains an item by item list of principal duties,
continuing responsibilities, and accountability of the occupant of the position. The list should
contain each and every essential job duty or responsibility that is critical to the successful
performance of the job. The list should begin with the most important functional and relational
responsibilities and continue down in order of significance. Each duty or responsibility that
comprises at least five percent of the incumbent's time should be included in the list.
• Description of the Relationships and Roles the occupant of the position holds within the
company, including any supervisory positions, subordinating roles, and/or other working
relationships.
Importance of Job Description: -
1. Job Identification: - Job identification or original position, which includes
the job title, department, division plant and code number of the job. The job title identifies and
designates the job properly the departments division etc. indicate the name of the department where it is
situated - whether it is the maintenance department, mechanical shop etc.
2. Job duties and responsibilities: - Job duties and responsibilities are two
important purposes. First it provides a short definition which is useful as an additional identification
information when a job title in not adequate.

3. Job duties and responsibilities: - Job duties and responsibilities gives a

comprehensive listing of the duties together with some indication of the frequency of occurrence or
percentage of time devoted to each major duty.
4. Relation to other jobs: - This helps to locate the job in the organization
by indicating the job immediate below or above it in the job hierarchy.
5. Supervision: - Under it is given the number of persons to be supervised
along with there job titles and the extent of supervision involved general intermediate or close
supervision.
6. Machine, tools and equipments: - Job description also defines each major
type or trade name of the machine and tool and the raw material used.
Person Specification:
This involves relating to a range of organisations, groups and individuals, including, but not exclusively,
those who have experienced personal or social difficulties. This requires that a candidate:
• Has an ability to create an impression of reliability and dependability but challenges inappropriate
behaviour firmly, diplomatically and sensitively.
• Has the ability to critically analyse relationships and demonstrates self-awareness of own impact on
others.
The job specification will describe the job succinctly; indicate the role of the post holder within the
Team/Unit, and any relationship with other Teams/Units; specify the responsibilities of the post; and
indicate the typical activities of the post holder. It must not contain requirements or conditions which cannot
be shown to be justifiable.
The person specification will detail the qualifications, experience, skills, knowledge and personal qualities
required. This specification will correlate with the job specification, and must not include any requirements
which are not necessary for the job.
The person specification and the job specification must not be restrictive, or imply the suitability of any
particular 'race, for the job. The person specification will specify a range of means of demonstrating the
requirements and will not be confined to conventional qualifications and experience.
Importance:
From the criteria set out in the job description a person specification should be set. The person specification
assists in the recruitment process by providing:
 A consistent set of standards for all applicants which can be observed or measured
 objectively,
 A structured means for a comparative assessment of the applicants.
 A document to ensure that the basis of decision making is publicly known.
The person specification should include the following criteria:

1. Skills and aptitude
2. Knowledge
3. Experience
4. Qualifications
5. Personal attributes
The requirements set out in the person specification should be specific and, where possible, measurable. To
ensure equality of opportunity all criteria on the person specification should be derived from the
requirements set by the job description.

The person specification can be divided into essential and desirable criteria. This should be used in the short
listing process to distinguish between candidates. Essential skills are those that are critical for the
satisfactory performance of the job. It is expected that applicants will meet all the essential criteria to be
considered eligible for appointment. Desirable criteria are those which enhance a person’s capacity to do
the job. They are usually not listed as essential because it is expected that they can be acquired once in
employment. For example, while specific knowledge of the University and it’s environment could be of
benefit, it can also be learnt.
Person specifications relate to:
Physical characteristics: Including health, strength, endurance, age, range, body size, height, weight, vision,
poise, eye, hand and foot coordination etc
Psychological characteristics: Special attitude, such as manual dexterity, mechanical aptitude, in germinate,
judgment, resourceful, etc
Personnel characteristics: Traits of temperament, personal appearance, good and pleasing manners,
emotional stability, aggressiveness, submissiveness, extroversion, introversion, leadership, etc
Responsibilities: Include supervision of others, responsibility for production process and equipment,
responsibility for the safety of others, responsibility for preventing money loss, etc
The items included in person specification are according to the nature of an organisation and uses to which
area they put. However items like sex, experience, skill, education, etc are invariably included in a person
specification.
(b) Discuss the relevance of innovative Employee Reward System.

There is no doubt that motivation is the crux for good performance, but there is no clear cut answer to the
question of how to motivate. Money is a factor in motivating people.
According to Peter Drucker (1974) 'there is not one shred of evidence for the alleged turning away from
material rewards... Antimaterialism is a myth, no matter how much it is extolled.' In fact, they are taken so
much for granted that their denial may act as a de-motivator. 'Economic incentives are becoming rights
rather than rewards.'
There is no doubt that we live in a money-motivated world. Any amount of human relations cannot
compensate for a lack of monetary reward. If the reward is right, good Human Relations will give that extra
zest to a team, motivating them to give of their best efforts. Insufficient monetary reward cannot be
compensated by good human relations.
It is no different in the industrial world. Strikes for better salary and rewards do still occur. All this despite
the claim of psychologists that security is the prime need of a person, as indicated in the previous section.
Has the sense of values changed with time? But we are not concerned here with the philosophical angle, but
with hard facts of life in a commercial world.
Self-motivation can go only so far and it needs to be constantly reinforced by rewards. In particular, merit
must be measured and rewarded regularly, if it is to be encouraged and sustained. The 'gold banana' in
Foxboro has its origin in just an ordinary banana which one of the pioneers could muster on the spur of the
moment when he discovered extraordinary performance by one of the employees.
Properly used, money can be a motivating factor, but little money may have no effect. To achieve
motivation of executives, therefore:
• Reward should be meaningful; and
• Reward should vary with performance.

The concept is simple, but its implementation is not easy. However, the job is well worth trying. To be
effective, the reward should be 'tailored' to each individual, but only as part of the total compensation
concept. It is essential (Moore (1968)) to develop an overall program within which each compensation
package must be individualized.
There is also need for constant search of new ideas in this respect. The essentials of an effective company-
wide executive compensation scheme are: sound salary-base structure, several fundamental compensation
devices and considerable flexibility in its application.
The five basic elements of executive compensation are:

• Salary,
• Short-term incentives,
• Long-term incentives,
• Employee benefits and
• Perquisites.
Any plan for executives should take into account the following factors:
1. Executives perceive others as working less and paid more.
2. Appearance of a reward as important a factor as the reward itself.
3. Flexibility, but not at the expense of discretion.
4. Performance rating should support the pay action.
5. Correcting one inequity may lead to yet another.
6. A decision once announced is difficult to modify.
7. An arithmetic increase in the number of people involved results in a geometric increase in the time
required to reach agreement.
Motivating for high performance can cost a lot of money. Not everyone can be motivated by money alone,
however much. Incentive pay plans should be designed not only to reward good performance but also to
minimize the negative side-effects, such as conflict and grievance. At times it is difficult to develop a valid,
equitable and acceptable means of performance. Many pay plans fail because of either not being suited to
the particular situation or because of poor implementation. It is essential to consider the following aspects
before designing a pay plan to motivate performance:
• Preference of individual employees;
• Size of pay rewards for high performance;
• Method of motivating individual job performance;
• Subjective
Performance related pay

Reward can act as the 'catalyst' for improved performance and better productivity. But reward, as such, is
not enough and in any case it is not a substitute for good management. Rather, it is a part of management.
Certain basic criteria are essential for rewards to be effective. These include:
• Reward should be quick.
• Reward should be significant.
• The goals and rewards must be; known, understandable; and attainable.
• Reward must be distinctly and directly related to performance.
• Reward should be irrevocable.
• Reward should be compatible with job measurement.
If the reward plan is seen to be unfair and unrealistic, for example promotion on the basis of seniority or
favoritism, it may have a definitely negative effect as a motivator. For rewards to be effective, they have to
be generous and significant as noted above, hence they must be structured to attain a proper balance of
motivating people to purpose and at optimum effort.

Rewards are generally reckoned to improve productivity by somewhere of the order of 20 to 30 per cent.
This is nearly twice as much as that attained by goal-setting or job-redesign. But each incentive or reward
system is likely to have value under certain conditions only. Hence to be effective, the rewards must be
'tailored' and changed to suit the specific conditions. There is no magic formula for all situations and at all
times.
Productivity is usually but erroneously associated only with the workshop floor. But total productivity
which ultimately determines the profitability of the entire organization is the sum total of the productivity at
various levels right up to the CEO. For if the workers are not given the right materials at the right place and
at the right time, their productivity will suffer due to no fault of theirs. The manager, therefore, plays a vital
role in the productivity of the workers and team.
One can even go as far to say that productivity is the only reason for the existence of the manager.
Individually the manager may be considered nonproductive, in that he or she does not contribute directly to
the production, but is responsible for integrating the work of his or her team into a total productivity effort,
Thus, a manager can increase productivity indirectly by aiding to produce more, and here too, financial
motivation plays a major role.
Reward systems
The financial rewards are basically of three types:
• Profit sharing;
• Job evaluation; and
• Merit rating.
Profit sharing
Profit sharing could be on a macro basis or on a micro basis. The former relates to the entire company as a
whole and the latter to a particular section or group dealing with a particular activity and/or product. On a
macro level, it would be difficult to identify and reward outstanding performance. This is possible on a
micro level by treating the particular activity as a cost and profit center by itself. This is easier said than
done, since overheads and other common services have to be charged and this cannot be done completely
objectively. The cost allocation in such cases is somewhat arbitrary and the profit will therefore not be a
true reflection of the performance of that particular group or activity.
Job evaluation
In case of job evaluation, the various component factors have to be isolated and evaluated for purposes of
inter-job comparison. Each factor is assigned a rating on the basis of a scale agreed beforehand by the union
and the management joint committee. The total rating for each job then forms the basis of wage structure.
However, there must be a base level, representing, in effect, the 'minimum wage', depending on the nature
of work and the geographical area. In some cases and in some countries these are stipulated by law. A
typical, though somewhat broad, list of job factors is as follows:
• Working environment;
• Physical characteristics;
• Mental characteristics;
• Extent of responsibility;
• Training and experience.
In case of managers, the factors are:
• Responsibility;
• Expertise;
• Human relations.
Merit rating
Merit rating has been used as an indicator of performance. Each employee is rated, typically as excellent,
good, average or poor, in respect of the following abilities:

• Communication;
• Human relations, including leadership and motivation;
• Intelligence;
• Judgment;
• Knowledge.
The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias of the rater
who may be too lenient, may not be objective and may also have favorites or otherwise in the group being
rated.
Other systems of Employee rewards:
Thank You Award/Reward: A reward/Award scheme where the employee is given a Thanks award or a
Thank you certificate to symbolize his actions. This also acts as a boost within the employee for better
performance. This would require no approvals and any person in the organisation can nominate this award.
Employee of the month/Week: This kind of appreciation of an employee by the organisation triggers other
employees to reach those heights. It invokes a sense of competition and recognition for the employees’
effort. Posters in main location could be posted to bring to the notice of everybody in the organisation;
Articles could be posted on the local Intranet for viewing, etc.
Employee Stock options: This is another of the reward systems where in the employee is given a share of
the company’s Stock in the market. This is a form of sharing the profit with the employees. This indicates
the bonding of the company with the employee and making him a part of the company profits shows a sense
of belonging. This provokes an employee to work for an organisation as though it was his own company.
Conclusion:
Many such various schemes are innovatively discovered, within the limits of the organisation to praise and
understand the efforts of its employees. This ensures that the employees are treated with respect and
concern and motivates him to be a better, devoted and honest employee of the organisation. These are
rewards for his actions and a form of gratitude shown by the organisation to him.

Question 7:
(a) Explain how the Training needs can be identified?
(b) What are the ways a Training programme can be evaluated?
(a) Explain how the Training needs can be identified?

An analysis of training needs is an essential prerequisite to the design of effective training. The purpose of
this diagnostic is to determine whether there is a gap between what is required for effective performance
and present level of performance.
Training Need Analysis (TNA) is an effective way to identify any gap between the skills in business needs
and those the employees have. It involves gathering information to identify areas where your employees
could improve their performance. We can use employee surveys, management observations, customer
comments, company meetings and inspections to collect this information.
A TNA can help you clarify objectives in training staff. This is invaluable for ensuring that money is spent
on training that will help the business to achieve its objectives.
Training needs arises of three levels -

 Organizational
 Group
 Individual levels

Behaviour Discrepancy
Identification
Cost/Value Analysis
YES! NO
Skill/Knowledge
Deficiency
Cant Do Don’t Do
Reward/Punishment/
Job Aid
Incongruence
Training
Lack of inadequate
Feedback
Practice
Obstacles in System
Change the job
Transfer or
Terminate
Training Need Analysis Model
The corporate needs arise at three levels organization group and individual levels they are interdependent
because the corporate performance of an organization ultimately depends on the performance of its
individual employee and its sub group.
The corporate needs of the organization and its group may be identified in the following ways -

The evidence of human resources planning: - This provides information about the demand and supply of
human resources and the possible implications for training needs. Thus a forecast of a possible difficulty in
recruitment people with required entry levels in knowledge and skills could effect recruitment and training
policy. Compelling the organization to recruit at lower level and then to provide compensatory training to
fill the performance gap.
The introduction of new methods: - Whenever new methods of work e.g. computers are introduced this
changes the requirements for effective performance, creates a performance gap in knowledge and skills and
hence a training need.
Collective evidence from performance appraisal and formal method for needs assessment:
Information emerging from the performance appraisal of individual employees or from formal methods
such as meetings, interviews or questionnaires, in which line managers, HR and training staff and individual
employees are involved, may reveal needs for training that are common throughout the organisation.
The perception that external training is irrelevant deserves a second thought in view of increasing
competition posed by the global market place and recession. Today's globalised economy has led to
organisational responses which include drives for quality, technological change and organisational
restructuring, which has been the trigger for seeking more cost-effective training.
While internal training such as in-house courses and programmes, on-the-job training, mentoring and open
learning are still popular among the Malaysian companies, traditional external training have received
criticisms from many companies for its theoretical and academic approach. For example, unrealistic or
impractical examples are used to illustrate situation not related to the actual simulation in the workplace.
Some courses are believed to be irrelevant as they are not tailored according to employee and job needs.
Hence, it is the need for cost-effective training which has caused the shift away from traditional training
over recent years. Cost-effective training is usually work-related and practical by nature. Ideally, cost-
effective training enhances the trainee's motivation and understanding, increases their productivity and
efficiency at work with a minimum training budget.
As managers increasingly see work-related training to be of importance, budget conscious companies are
also aware of problems that arise when training is conducted by external training providers and consultants.
There are complaints that the external training are too expensive, while courses provided are insensitive to
company's and training needs. Some also find external training disruptive and creating problems rather than
solving them.
External training providers should carefully identify the individual company's needs for training and
respond to these different needs accordingly. After identifying the needs and problems, training providers
should relate the course content to the trainee's work by providing information and hands-on approach to
the trainees.
Course content, course time and location are three crucial factors in decision making for training. Managers
can request from the external training providers to develop courses where the theory ties to relevant
practical examples, at flexible times, and with trainers going out to the workplace as much as possible. In
short, training needs of employees must be identified and must not be assumed in order to achieve cost
effectiveness for the company.
Specific training needs for individuals may arise at any time during their working career. However there are
particular occasions when formal assessment is needed:

Starting Employment: New employees will invariably need some kind of training to fill the gap between
their present levels of knowledge and skills those needed for effective performance at work.
Some examples of new employee training are: Introduction into the software used by the company,
Training in laws and regulations adhered by the company, etc.
Appraising performance: In performance appraisal, recent performance is compared with required levels.
The comparison with required levels reveals deficiencies and needs which have to be remedied by training.
Changing jobs: People changing jobs are in a similar situation to those starting employment. The
requirements for the new job may well create a performance gap that needs to be filled by training.
(b) What are the ways a Training programme can be evaluated?

Evaluation is often looked at from four different levels listed below. Note that the farther down the list, the
more valid the evaluation.
Training like any other function should be evaluated to determine its effectiveness. A variety of methods are
available to assess the extent to which training programs improve learning affect behavior on the job an
impact the bottom line performance of an organization
 Reaction - What does the learner feel about the training?
 Learning - What facts, knowledge, etc., did the learner gain?
 Behaviors - What skills did the learner develop, that is, what new information is the learner using on
the job?
 Results or effectiveness - What results occurred, that is, did the learner apply the new skills to the
necessary tasks in the organization and, if so, what results were achieved?
Reactions: -
One of the simplest and most common approaches to training evaluation in assessing participant reactions.
Happy training will be more likely to want to focus on training principles and to utilize the information on
the job potential question might include the following -
 What were your learning goals for this program?
 Did you achieve them?
 Did you like this program?
 Would you recommend it to other who have similar learning goals?
In this first level or step, students are asked to evaluate the training after completing the program. These are
sometimes called smile sheets or happy sheets because in their simplest form they measure how well
students liked the training. However, this type of evaluation can reveal valuable data if the questions asked
are more complex. For example, a survey similar to the one used in the formative evaluation also could be
used with the full student population. This questionnaire moves beyond how well the students liked the
training to questions about:
• The relevance of the objectives.
• The ability of the course to maintain interest.
• The amount and appropriateness of interactive exercises.
• The ease of navigation.
• The perceived value and transferability to the workplace.
While evaluation methods based on reactions are improving, too many conclusions about training
effectiveness are still based on broad satisfaction measures that lack specific feedback. Further, positive
reactions are no guarantee that the training has been successful. It may be easy to collect glowing
information from trainees but gratifying as this information is to management, it may not be useful to the
organisation unless somehow translates into improved behavior and job performance.
Learning: -
Beyond what participants think about the training it might be a good idea to see whether or not they actually
learned anything testing knowledge and skills before beginning a training program gives a baseline standard

on trainees that can be measured again after training to determine improvement. In addition to testing
trainees before and after training parallel standards can be measured for individuals I a control group to
compare with those in training to make certain improvements are due to training and not some other factor.
Behavior: -
Trainees typically score well on post-tests, but the real question is whether or not any of the new knowledge
and skills are retained and transferred back on the job. Level Three evaluations attempt to answer whether
or not trainees' behaviors actually change as a result of new learning.
Ideally, this measurement is conducted three to six months after the training program. By allowing some
time to pass, trainees have the opportunity to implement new skills and retention rates can be checked.
Observation surveys are used, sometimes called behavioral scorecards. Surveys can be completed by the
trainee, the supervisor, individuals who report directly to the trainee, and even the trainee’s customers.
To maximize transfers, managers and trainers can take several approaches: -

 Feature identical elements
 Focus on general principles
 Establish a climate for transfer
 Give employees transfer strategies
Result: -
The fourth level in this model is to evaluate the business impact of the training program. The only scientific
way to isolate training as a variable would be to isolate a representative control group within the larger
trainee’s population, and then rollout the training program, complete the evaluation, and compare against a
business evaluation of the non-trained group. Unfortunately, this is rarely done because of the difficulty of
gathering the business data and the complexity of isolating the training intervention as a unique variable.
However, even anecdotal data is worth capturing. Below are sample training programs and the type of
business impact data that can be measured.
• Sales training. Measure change in sales volume, customer retention, length of sales cycle,
profitability on each sale after the training program has been implemented.
• Technical training. Measure reduction in calls to the help desk; reduced time to complete reports,
forms, or tasks; or improved use of software or systems.
• Quality training. Measure a reduction in number of defects.
• Safety training. Measure reduction in number or severity of accidents.
• Management training. Measure increase in engagement levels of direct-reports
According to a study approximately two third of training managers surveyed reported that they were
coming under additional pressure to show that their programs produce bottom line results fume of the
results based on criteria used in evaluating training include increased productivity, fewer employee
complains decreased cost and waste and productivity.
Summary
Level Definition Advantages Disadvantages

1. Reaction Measures trainees' opinions about Low cost and easy to Only reflects a quick
the course. This Is the most administer. Provides insights reading of the participant
common way to evaluate student to participant's personal while they are still in the
reaction to the course and provides feelings about the course. class. Results should not
a measure of immediate customer Provides quick feedback on be used as a solid basis
satisfaction with content, delivery, successes and failures to the for changing the
and environmental factors. Often training provider. educational content or
referred to as "Smile Sheets." strategy

2.Learning Measures how well participants Compared to level 1, this Requires more time and
have mastered the course provides more compelling money than level 1. Also
objectives. Can include tests of evidence of whether the requires greater insight
performance immediately before training program works. to the evaluation process
and after the course. to develop valid
measures of learning.
3.Behaviour Assesses practical value of Provides stronger evidence Requires significantly
training. Measures how well the that the investment in training more investment of time
knowledge, skills, and/or values yields the desired return. If and money. Requires in-
from the course are used in the job. designed properly, can also depth insight into
Typically measured 3-6 months identify barriers and performance
after the course. obstacles to improved interventions and root
performance. causes of performance
deficiencies.
4.Results Measures performance Provides strong evidence that Substantial levels of
improvement, quality training program has impact investment and expertise
improvements, and cost savings to on organization. Addresses are required to develop
the organization. Measures the whether the performance is level 4. Often hard to
return on investment of the training important to the decide whether or not
course. organization's bottom line this level is required.
(e.g., production, safety, Linkage from training to
sales) org'1 results is hard to
establish

Question 8:
(a) What is system approach to training?
(b) Explain briefly different training and development methods
(a) What is system approach to training?

The training should achieve the purpose of helping employee to perform their work to required standards.
The steps invoked in assigning a training programme are as follows: -
 Identify training needs who need training and what do they need to learn.
 Taking account of learning theory- design and provide training to meet identified needs.
 Assess whether training has achieved its aim in terms of subsequent work performance.
 Make any necessary amendments to any of the previous stays in order to remedy or
improve failure practices.
The process is commonly known as the system approach to training (sat) the sat is so called because it is a
series of interdependent system’s functionally linked together and integrated into the whole work system
interdependence of the stage is crucial since the malfunction or neglect of any one of them inevitably affects
the others and the total systems
For example: - If job analysis has not defined the criteria for effective performance training need cannot be
identified by performance appraisal.
The Systematic Approach to Training or SAT is a methodology for managing training programs. It is an
orderly; logical approach to determining what people must know and do at a particular job or in a specific
profession. The systematic approach to training ensures that people are prepared for their work by having
the necessary knowledge, skills, and attitudes to do their job.

SAT is performance-based training and competency driven. It is concerned with on the job performance.
SAT begins with identifying people's work related needs. It ensures training is delivered properly; the
student learns what is important; and the student is competent to be assigned to work. The systematic
approach to training uses constant evaluation of the training program to ensure it is meeting the needs of the
students and of the organization.
SAT is always a combined effort between trainers and experts from operating line organizations. Managers,
supervisors, and experienced workers from organizations such as operations, maintenance, radiation
protection, and others play an important role in the implementation of the systematic approach to training.
There are five phases in the systematic approach to training: Analysis, Design, Development,
Implementation, and Evaluation.
Analysis:
The first phase in SAT is analysis. The first questions that must be asked are "Is there a need for training?"
and "If something is wrong, is it caused by a performance problem that training will fix?" Managers
sometimes will attempt to correct a human performance problem caused by an inadequate procedure or
faulty equipment by training the people. Trainers sometimes attempt to use training to correct problems
even though training will not solve the problem because they want to help. Make sure training is needed.
Then analyze to determine what training should be done.
During the analysis phase trainers will attempt to identify the knowledge and skills of future trainees. This
will allow the course to be designed to meet their learning needs. The outcome of the analysis phase is a
task analysis that lists the tasks that are performed to accomplish the duties of a position and the knowledge,
skills, and attitudes necessary to perform the tasks. These become the basis for the design of the training
course and for writing the trainee’s learning objectives.
Design:
The design phase is really a decision making phase. In the design phase we complete three important
activities:
1. We decide what the trainee will learn in the class and how that learning will transfer to the job. From this
activity we write trainee’s learning objectives.
2. We decide what will be taught and the instructional methods to be used to teach.
3. We decide how the student will demonstrate competency to do the required work and we develop an
examination plan to test the trainee’s competency.
Development:
In the development phase the training design is made into training material. Training materials for instructor
and trainee’s are written or purchased. These materials could include lesson plans, student handouts,
videotapes, training aids, or other material.
Examination questions are written as required in the examination table of specifications from the design
phase.
Implementation:
In the implementation phase the instructor teaches and the student learns. Although this is the phase that
most people think of as "training" it is the easiest phase to perform. The material written during the
development phase is used to implement the decisions that we made in the design phase. We also apply the
information learned about the job in the analysis phase during implementation. At the completion of the
course the trainee’s prove their competency by passing the course examination.
Evaluation:
Evaluation is usually listed last. However, evaluation is done throughout the SAT process. Evaluation is
asking, "How are we doing?"

During the other three phases trainers do an evaluation to ensure the process is working correctly and to
identify improvements immediately. After the training is completed trainers evaluate the effectiveness of
the training. They determine if the trainee is performing on the job as expected. They determine if the
training course was useful to the nuclear power plant performance. Trainers identify what else is needed to
improve performance and determine if the course could have been done better. Identifying improvements
for the course and improvements for the entire training process is an important part of the evaluation phase
of SAT.
Conclusion:
The systematic approach to training is always attempting to improve performance of people. It is an orderly;
logical approach to determining what people must know and do at a particular job or in a specific profession
and to prepare them to do their job. The systematic approach to training ensures that people are prepared for
their work by having the necessary knowledge, skills, and attitudes to do their job.
(b) Explain briefly different training and development methods

Training and Development Methods: -
1. Employee Training Methods: - The most popular training methods used by organization
can be classified as either on the job or off the job training few better technique from each category
are briefly explained
 On the job training: The most widely used method of training take place on the job. On the job
training places the employee in an actual work situation and makes them appear to be employee is
an actual work situation and make them appear to be immediately productive.
Apprenticeship programs: - people seeking to enter skilled trades are often required to undergo
apprenticeship training
 Off the job training: - off the job training covers a number of technique classroom lectures films
demonstrations cause studies and others relations exercise and programmed instructions.
Different types of off the job training are as follows: -
 Films
 Simulation exercise
 Cases
 Experimental exercise
 Computer modeling
 Vestibule training
 Programmed instructions
(2) Management development method: - Management development is more future
oriented and more concerned with education than is employee training or
assisting a person to become a better performer by education we mean that
management development activities attempt to instill sound reasoning processes
– To enhance one’s ability to understand and interpret knowledge rather than
imparting a body of serial facts.
Successful managers have analytical human conceptual and specialized skills. They are able to think and
understand management development method is further divided into two parts
 On the job development :-
The development of a manager’s abilities can take place on the job. we will review four popular on the job
techniques
(i) Coaching
(ii) Understudy assignments
(iii) Job rotation
(iv) Committee assignments

Coaching: - When a manager takes an active role in guiding another manager we refer to this activity as
coaching. The effective gives guidance through direction, advice, criticism and suggestions in an attempt to
aid the growth of the employee.
Job rotation: - Job rotation represents an excellent method for broadening the manager or potential
manager and for turning specialist into generalists. In addition to increasing the manager’s experience and
allowing the manager to absorb new information, it can reduce boredom and stimulate the development of
new ideas. It can also provide opportunities for a more comprehensive and reliable evaluation of the
manager by his or her supervisors.
Committee assignments: -Assignment to a committee can provide an opportunity for the employee to
share in manager decision making to learn by watching others and to investigate specific organisational
problems. When committees are of “Adhoc” or temporary nature they often take on task force activities
designed to delve into a particular problem, ascertain alternative solutions and make recommendations for
implementing solutions.
Appointment to permanent committee: - Appointment to permanent committee increases the employee’s
exposure to other member of the organization, broadens his/her understanding and provides an
opportunity to grow and make recommendations under the scrutiny of other committee members.
(3) Off the job development: -there are many management development technique that personal can
partake in off the job. Few popular ones: -
 Sensitivity training: Sensitivity training in encounter groups is a method of changing behaviour through
group processes.
 Transactional analysis: This may help managers understand others better and assist them in altering
their responses so as to produce effective results.
 Lecture courses: Formal lectures offer an opportunity for managers or potential managers to acquire
knowledge and develop conceptual and analytical abilities. In large organisations, these lecture courses
may be offered “In-The-House” by the organisation itself.
 Simulation exercises: These were introduced as a training technique, they were meant probably for
management development. Most widely used simulation exercises are:
a. Case studies
b. Simulated decision game
c. Role playing
Responsibility for training and development: - Training is the responsibility of four major groups:
o The top management, which frames the training policy.
o The HRD department which plans establishes and evaluates instructional programmes
o Super ions who facilitate training and development activities
o Employee’s who provide feedback revisions and suggestions for corporate educational
endeavors.

Question 9:
(a) Write short notes on: (Any Two)
(b) MBO
(c) Principles of learning
(d) Selection process
(e) Training of Appraisers
(a) MBO:
It is all too easy for managers to fail to outline, and agree with their employees, what it is that everyone is
trying to achieve. MBO substitutes for good intentions a process that requires rather precise written
description of objectives (for the period ahead) and time-lines for their monitoring and achievement. The
process requires that the manager and the employee agree to what the employee will attempt to achieve in
the period ahead, and (very important) that the employee accept and buy into the objectives (otherwise
commitment will be lacking).
For example, whatever else a manager and employee may discuss and agree in their regular discussions, let
us suppose that they feel that it will be sensible to introduce a key performance indicator to show the
development of sales revenue in a part of the firm. Then the manager and the employee need to discuss
what is being planned, what the time-schedule is and what the indicator might or might not be. Thereafter
the two of them should liaise to ensure that the objective is being attended to and will be delivered on time.
Organisations have scarce resources and so it is incumbent on the managers to consider the level of
resourcing but also to consider whether the objectives that are jointly agreed within the firm are the right
ones and represent the best allocation of effort.
In the traditional performance appraisal methods the appraiser has to rely entirely on his judgment to assess
the employee. Since a number of decisions are taken based on appraisal, it is essential to make the system as
objective as possible. The management by objectives approach involves establishing performance goals
jointly by the superior and subordinate. For this program to be effective, both the superior and subordinate
must e actively involved in the objective formulation and agrees upon the methods to be used to assess
performance.
MBO Principles
Cascading of organizational goals and objectives.
Specific objectives for each member.
Participative decision making.
Explicit time period.
Performance evaluation and feedback.
The MBO program involves:
(i) Defining key tasks for the subordinate and setting a limited number of objectives.
(ii) Establishing criteria for evaluation of objectives.
(iii) Determining the dates for review of progress and making modification in the original objective during
the review, if necessary.
(iv) Having a final evaluation session for counseling and encouragement.
(v) Setting objectives for the next cycle.
Problems faced by the MBO program are:
 Too much paper work
 Setting too many objectives may create prioritization problems
 Difficult to establish measurable objectives for certain jobs.
 Too much emphasis on short term performance and losing sight of long-term objectives.

 May be used by some supervisors as a control devise that intimidates rather than motivates
subordinates.
(c) Selection Process:

If an evaluation / selection program is to be successful the employee characteristics which are believed
necessary for effective performance on the job should be stated explicitly in the job specification. The
criteria usually can best summarize in the following categories:
• Education
• Experience
• Physical Characteristics
• Personal Characteristics
Basically, the employee evaluation and selection criteria should list the characteristics of present employees
who have performed well in the positions to be filled. However, if the list of characteristics desired is too
long, it may not be possible to select anyone. With no list of criterion, the wrong prospects are likely to be
selected.
These predictors of success, particularly the more formal mechanisms such as items on a paper and pencil
test, have two characteristics:
• Reliability
• Validity
The reliability of an employee evaluation and selection instrument, such as a test, is the extent to which the
instrument is a consistent measure of something. An intelligence test is said to be reliable, if the same
person's scores do not vary greatly when the test is taken several times. The higher the reliability, the more
confidence can be placed in the measurement method. Usually, the instrument is more reliable if it is
longer. The instrument used must also be internally consistent to be considered reliable, which is a good
predictor of success for the job performance in question.
Reliability and validity can be thought of in the following way. A yardstick is a reliable measure of space;
no matter how many times you carefully measure a basketball player, he will be the same height. But a
yardstick has no validity as a measure of his muscular coordination. Thus a selection device such as a test
may be reliable without being valid.
Human resource specialists can compute the validity of a selection instrument several ways.
• One way, is to look at the currently successful employees, find a factor that is common to them, and
designate it as a predictor. This is called concurrent validity.
• A second way is to use an instrument such as a test during the evaluation / selection process, then
wait until the successful employees are identified and correlate the test or test measures with the
successful and unsuccessful employees. This is called predictive validity.
• A third way, sometimes used by smaller organizations, because the numbers of persons in similar
jobs is too small to use concurrent or predictive methods, is called synthetic validity. In this case,
elements of several jobs that are similar, rather than a whole job, are used to validate the selection
instrument. This method is newer than the other two and us used less frequently.
It should be noted that the criterion used to predict performance or success is a proxy of actual performance.
Since good job performance is usually a combination of many factors (quality of work, quantity of work,
etc.), a criterion such as a supervisory rating is a proxy for the real measure, job success or performance.
Selection process:
1. Initial screening interview: - In culmination of our recruiting efforts we should be prepared to
imitative a preliminary review of potentially acceptable candidates. the screening is in effort a
few step procedures.
i. The screening of inquiries and
ii. The provision of screening interviews.

2. Completion of application form: - Once the initial screening has been completed application
are asked to complete the organization application form. The amount of information required
may be only the applicant’s name, address and telephone number.
3. Employment tests: - Organizations historically relied to a considerable extent on intelligence
aptitude ability and interest tests to provide major inputs to the selection process.
4. Comprehensive interview: - Those individuals who are still viable applicants after the initial
screening application form and required tests have been completed are then given a
comprehensive interview. The applicant may be interviewed by personnel department
interviewers.
5. Background investigation: - The next step in the selection process is to undertake an
investigation of those applicants who appear to other potential as employees. They may include
contacting former employers to confirm the candidate work record and to obtain their appraisal
of his or her performance.
6. Physical examination: - The last step prior to the final selection decision may consist of
having the applicant take a physical examination. For most jobs this is a screening device in the
selection process.
7. Final employment decision: -Those individuals who perform successfully on the employment
tests and the comprehensive interview and are not eliminated by the development of negative
information on either the background investigation or physical examination is now considered
to be eligible to receive an offer of employment.
This is the whole selection process adopted by almost all the organizations in order to choose
the best candidate for the job among all candidates.

Question 10:
Analyse anyone of the cases given in the study material.
Case: A Depressed Trainee Engineer (Chapter 8 – Appraisal Interviews)

Questions:
1. Where did the things go wrong?
2. What options are open for the training management other than termination of Mr.
Sharma?
3. Did the Paints Shop manager handle the trainee properly?
4. How could you put Mr. Sharma back on the right Track?
Case analysis:
1. Where did things go wrong?

In the above case study, it is evident that there were certain key turning points in the scenario where one
could say that the things took a turn for the worse. A few of them are outlined below:
 Improper setting of goals and expectations – The company should have had a defined policy and
training guide in place for all job roles, that would have listed the goals, activities, skills required for every
department’s trainees and thereby set a realistic expectation in the minds of the trainees. While it is stated
that the trainees were taken in only after rigorous rounds of tests, interviews etc, care should also have
been taken to take the inputs of the trainees themselves in assessing their aspirations and explaining to
them the nature and scope of the training program
 Failure to handle a high performer’s career ambitions – It is evident that Mr. Sharma had the
technical skills necessary that would have enabled him to contribute better to his specific department, had
the department manager, training manager and the company in general, handled his career aspirations
better and had a policy in place to mould future leaders of the company by having a fast growth career
track and periodically assessing if Mr. Sharma could have fit in it. Very often, a company’s work
environment and policies come in the way of a high performer’s growth and ambition and this was
probably the case in this situation too.
 Lack of effective reward system – Very often it is seen that a lack of an effective reward and
appreciation system is the cause of frustration and disinterest in the job. The company should have
instituted an effective reward system to motivate and spur high performance employees, including the
trainees like Mr. Sharma. The Training Manager should have taken it into himself to discuss the matter
with his management team including the Department Manager to find out ways and means of rewarding
effective performance. This could have taken the form of either a monetary award or an increase in
stipend or even something non-monetary like better benefits or a citation or an opportunity to contribute in
a more interesting and challenging work opportunity.
 Lack of foresight on the part of Mr. Sharma – Mr. Sharma should have expressed his situation
better to the Training Manager instead of letting his feelings and frustration creep into his job. He could
have taken initiative by taking on more responsibilities or working on more strategic opportunities and let
his good performance speak for itself. He should have looked at the long term benefits as pointed out by
the Training Manager and the implications of his behaviour on it.
 Improper handling of a potential conflict – Reading the case study, one gets the feeling that the
conflict was never really handled to the satisfaction of the parties thereby denying a win-win situation for
Mr. Sharma or the company. The Training Manager should have better tried to understand Mr. Sharma’s
demand, while at the same time ascertaining from the management or the Department Manager as to what
sources of avenue were open to them to improve the morale of Mr. Sharma and to ensure a fair hearing on
the matter. The parties concerned should have got together and discussed the pros n cons of the avenues
open to them.
2. What options are open for the training management other than termination of Mr. Sharma?

Some of the options that are open to the training management are:
 Understand the underlying motives of Mr. Sharma’s demand and find out if it would be possible to
effect a decision that would satisfy both Mr. Sharma and also the company – This would be the first step
and will act as a predecessor to any of the other options that can be discussed below. The Training
Management needs to understand the rationale, motive and logic behind Mr. Sharma’s demand and apathy
towards his job.
 Source new avenues of opportunities for training – Assuming Mr. has grasped all the basics needed for
his normal departmental job and hence his demand to be made a permanent employee, the training
management should consider whether they would like to ask Mr. Sharma to take on a more challenging
role or provide him with higher training that would help him learn more skills and at the same time
assuage his ego.
 Retrain him in another area of specialization – If there is absolutely no scope for sourcing new
avenues of opportunities within the same department, then the training department needs to do a cost-
benefits analysis of retraining Mr. Sharma for work in a different department (possibly related) where
there would be scope for more challenging work, keeping in mind Mr. Sharma’s intellect, qualifications,
willingness and perception. While doing so, it must also be mentioned that the situation should be handled
delicately and it should not seem that the current department is trying to get rid of Mr. Sharma. It must be
explained to Mr. Sharma regarding the scope of more challenging work in the new department where he
could be better satisfied and contribute more. The aspirations, scope and nature of work along with scope
for growth and learning should be explained at the outset to prevent a repeat of the current scenario.
 Trying to effect a change in policy to consider hiring good performers earlier than normal – While it is
correct to state that Mr. Sharma’s current behaviour was far was satisfactory, it should be considered in
the light of his previous performance appraisal after his 3 month training, where he had performed well
and also the fact that his department did not have the need for an elaborate training program and that Mr.
Sharma’s academic record from a prestigious institute was good. The company should define a policy for
fast track employees to prevent future such incidents from dampening the enthusiasm and morale of
potential high performers.
3. Did the Paints Shop manager handle the trainee properly?

No, I do not feel that the Paints Shop manager handled the trainee properly. There were a number of
instances which I feel support my reasoning.
 Not providing an effective means of capturing periodic feedback – There was no instance which
suggested that a well thought out feedback mechanism was incorporated in the training cycle. Neither was
there a periodicity attached to any such feedback. As a result, it was made known until later about the
extent of the trainee’s frustration.
 Not asking for a self assessment by the trainee – The trainee was not asked to evaluate his
performance objectively and bring to light the trainees interpretation of his performance with respect to
the criteria applied for an appraisal. There was no sense of participation on the side of the trainee and
hence no output for redressal of grievance and frustration.
 Not focused on solving the problem – The paints shop manager did not show the maturity and
responsibility needed to solve the problem. He was more focused with the attitude of the trainee than on
the underlying cause of it and took no effort to understand the rot cause of the problem.
 No follow up and no goal setting – The paints shop manager did not take it upon himself to follow
up the activities of the trainee once he came to know about the trainees demand and decline in
performance thereof. Neither was his frustrations addressed nor was there any management done on the
part of the pants shop manager to assign a suitable set of activities for the trainee and to follow up on his
progress on the same. No mutually satisfactory goals were established and measurements thereof defined.
 Ineffective reward and appraisal system –The paints shop manager did not follow a policy of
effectively rewarding good performance and for providing an evaluative objective appraisal incorporating

both the good and bad aspects of the trainee’s performance and summarizing action points to improve
upon.
4. How could you put Mr. Sharma back on the right Track?
We could try to put Mr. Sharma on the right track by following a series of corrective steps as outlined
below:
 Give a patient hearing – First of all, get to hear from Mr. Sharma what is the problem being faced by
him and the reason why he feels he is losing interest in the job and is getting the feeling of not being
compensated enough for the work being done by him.
 Establish a concrete system of mutually accepted goals – Discuss with r. Sharma o opportunities for
growth within the department or elsewhere that interests him and can also be mutually rewarding to the
company and set goals for the various activities. These goals should be measurable and understood by Mr.
Sharma.
 Provide an effective mechanism of periodic feedback – Make the various interested parties interact on
a regular basis where self appraisals, appraisals by the management, tracking of goals and problem solving
become a part of the system.
 Be committed to understanding and solving the problem instead of focusing on the behaviour – Bring
about a culture change where Mr. Sharma’s problem is understood and earnest efforts made to solve it
instead of concentrating on his behaviour and acting negatively about it.
 Reward for good performance – Once Mr. Sharma’s problem is understood and efforts made to
deal with it, depending on future good performance, management should encourage managers to
objectively asses employees and reward them for good performance. Policy changes too regarding fast
track growth opportunities within the company, where supported can be effected.

HR Development Scope and Importance

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HR Development and Training 1

III Semester Assignment

HR TRAINING AND DEVELOPMENT

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In HRD Emphasis On: -

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(b) What is meant by HRD Audit?

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5. Changes in the styles of top management

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(a) Explain the relevance of “Human Resource Planning” in an industry

The relevance of Human Resource Planning is described as follows –

Determine recruitment needs: - An essential prerequisite to the process of recruitment is to avoid

A system of human resource planning

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Gayathri Shankarram Registration No. 200308104

Stages in career Development

Keys to a successful management career include the following aspects.

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Objectives of Appraisal System:

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14. Determination of Organizational Training Needs.

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(a) Explain the process involved in an Appraisal Interview?

Conducting the appraisal interview:

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Factors that influence Performance

(b) What are the objectives of Potential Evaluation?

Objective of Potential Evaluation: -

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Training Social Adaptation

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Induction training provides many benefits:

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Summary of main elements of an induction

Conducted by the line manager and HRM, covering

Details of the induction program

Conducted by the line manager and personal officer in

(b) Explain the different stages of Systematic Recruitment Process.

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General Recruitment policy:

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Systematic recruitment process flow chart

Person specification Sourcing Strategy

Send Application form

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There are 2 types of recruitment noted while sourcing the resources:

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 Applicant’s full name

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(a) Explain the importance of Job Description and Person Specification.

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3. Job duties and responsibilities: - Job duties and responsibilities gives a

The person specification should include the following criteria:

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(b) Discuss the relevance of innovative Employee Reward System.

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The five basic elements of executive compensation are:

Performance related pay