HUMAN RESOURCE MANAGEMENT

Human resource management (HRM, or simply HR) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the employees' representatives (usually a labor union).

Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization.

The human resources are multidimensional in nature. From the national point of view, human resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.

Human Resource Management: Defined

Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programmes relating to human resources to optimize their contribution towards the realization of organizational objectives.

In other words, HRM is concerned with getting better results with the collaboration of people. It is an integral but distinctive part of management, concerned with people at work and their relationships within the enterprise. HRM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization.

Human Resource Management: Evolution

The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the employee's productivity. Recent decades have focused on increased concern for the quality of working life, total quality management and worker's participation in management. These three phases may be termed as welfare, development and empowerment.

Human Resource Management: Nature

Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include:

• It is pervasive in nature as it is present in all enterprises.

• Its focus is on results rather than on rules.

• It tries to help employees develop their potential fully.

• It encourages employees to give their best to the organization.

• It is all about people at work, both as individuals and groups.

• It tries to put people on assigned jobs in order to produce good results.

• It helps an organization meet its goals in the future by providing for competent and well-motivated employees.

• It tries to build and maintain cordial relations between people working at various levels in the organization.

• It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

Human Resource Management: Scope

The scope of HRM is very wide:

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

2. Welfare aspect-It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Human Resource Management: Beliefs

The Human Resource Management philosophy is based on the following beliefs:

• Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent.

• A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resource.

• HRM can be planned and monitored in ways that are beneficial both to the individuals and the organization.

• Employees feel committed to their work and the organization, if the organization perpetuates a feeling of belongingness.

• Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs.

• Employee commitment is increased with the opportunity to dis¬cover and use one's capabilities and potential in one's work.

• It is every manager's responsibility to ensure the development and utilisation of the capabilities of subordinates.

Human Resource Management: Objectives

• To help the organization reach its goals.

• To ensure effective utilization and maximum development of human resources.

• To ensure respect for human beings. To identify and satisfy the needs of individuals.

• To ensure reconciliation of individual goals with those of the organization.

• To achieve and maintain high morale among employees.

• To provide the organization with well-trained and well-motivated employees.

• To increase to the fullest the employee's job satisfaction and self-actualization.

• To develop and maintain a quality of work life.

• To be ethically and socially responsive to the needs of society.

• To develop overall personality of each employee in its multidimensional aspect.

• To enhance employee's capabilities to perform the present job.

• To equip the employees with precision and clarity in trans¬action of business.

• To inculcate the sense of team spirit, team work and inter-team collaboration.

Human Resource Management: Functions

In order to achieve the above objectives, Human Resource Management undertakes the following activities:

1. Human resource or manpower planning.

2. Recruitment, selection and placement of personnel.

3. Training and development of employees.

4. Appraisal of performance of employees.

5. Taking corrective steps such as transfer from one job to another.

6. Remuneration of employees.

7. Social security and welfare of employees.

8. Setting general and specific management policy for organizational relationship.

9. Collective bargaining, contract negotiation and grievance handling.

10. Staffing the organization.

11. Aiding in the self-development of employees at all levels.

12. Developing and maintaining motivation for workers by providing incentives.

13. Reviewing and auditing man¬power management in the organization

14. Potential Appraisal. Feedback Counseling.

15. Role Analysis for job occupants.

16. Job Rotation.

17. Quality Circle, Organization development and Quality of Working Life.

Human Resource Management: Major Influencing Factors

In the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy:

• Size of the workforce.

• Rising employees' expectations

• Drastic changes in the technology as well as Life-style changes.

• Composition of workforce. New skills required.

• Environmental challenges.

• Lean and mean organizations.

• Impact of new economic policy. Political ideology of the Govern¬ment.

• Downsizing and rightsizing of the organizations.

• Culture prevailing in the organization etc.

Human Resource Management: Futuristic Vision

On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision:

1. There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection.

2. In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration.

3. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities.

4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically.

5. For performance appraisal of the employee’s emphasis should be given to 360 degree feedback which is based on the review by superiors, peers, subordinates as well as self-review.

6. 360 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold.

7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all levels; it will conform to customer's needs and expectations; it will ensure effective utilization of

resources and will lead towards continuous improvement in all spheres and activities of the organization.

8. There should be focus on job rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future job prospects.

9. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy.

10. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account.

11. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning.

To conclude Human Resource Management should be linked with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by Hand.

The Human Resources management system consists of many components, which are capable of working together. Hereunder, we will mention some of these functionalities knowing that we stay at your entire disposition in order to explain and demonstrate the whole human resources sub-modules to you to understand and appreciate the power tools and functionalities of this application:

Personnel Administration

Organizational Management

Time Management

Payroll

Recruitment

Personnel Administration; allows you to assign employees to the company's organizational units and structures during the hiring process, as well as maintain important employee personal data, such as, change in cost center, salary, address, etc...through out the employee's life cycle at the company.

Time Management; provides full functionality for management of time and leave information in the Company including time collection and evaluation of time and absence data for employees.

Organizational Management; allows you to depict your organizational and reporting structures clearly by presenting an up-to-date picture your enterprise's organizational plan.

Recruitment; enables you to optimize the recruitment process triggered by vacant positions by linking the Company organizational process, from organizational and job planning to mailing letters of rejection or acceptance.

Payroll; covers all essential payroll functions including earnings and deductions processing, preparation of remuneration statements, bank transfers and follow up activities such as transfer of information to Financials

HUMAN RESOURCE PLANNING

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

The HR plan needs to be flexible enough to meet short-term staffing challenges, while adapting to changing conditions in the business and environment over the longer term. Human resource planning is also a continuous process.

Human Resource Planning: an Introduction was written to draw these issues to the attention of HR or line managers. We address such questions as:

what is human resource planning?

how do organisations undertake this sort of exercise?

what specific uses does it have?

In dealing with the last point we need to be able to say to hard pressed managers: why spend time on this activity rather than the other issues bulging your in tray? The report tries to meet this need by illustrating how human resource planning techniques can be applied to four key problems. It then concludes by considering the circumstances is which human resourcing can be used.

1. Determining the numbers to be employed at a new location

If organisations overdo the size of their workforce it will carry surplus or underutilised staff. Alternatively, if the opposite misjudgement is made, staff may be overstretched, making it hard or impossible to meet production or service deadlines at the quality level expected. So the questions we ask are:

How can output be improved your through understanding the interrelation between productivity, work organisation and technological development? What does this mean for staff numbers?

What techniques can be used to establish workforce requirements?

Have more flexible work arrangements been considered?

How are the staff you need to be acquired?

The principles can be applied to any exercise to define workforce requirements, whether it be a business start-up, a relocation, or the opening of new factory or office.

2. Retaining your highly skilled staff

Issues about retention may not have been to the fore in recent years, but all it needs is for organisations to lose key staff to realise that an understanding of the pattern of resignation is needed. Thus organisations should:

monitor the extent of resignation

discover the reasons for it

establish what it is costing the organisation

compare loss rates with other similar organisations.

Without this understanding, management may be unaware of how many good quality staff are being lost. This will cost the organisation directly through the bill for separation, recruitment and induction, but also through a loss of long-term capability.

Having understood the nature and extent of resignation steps can be taken to rectify the situation. These may be relatively cheap and simple solutions once the reasons for the departure of employees have been identified. But it will depend on whether the problem is peculiar to your own organisation, and whether it is concentrated in particular groups (eg by age, gender, grade or skill).

3. Managing an effective downsizing programme

This is an all too common issue for managers. How is the workforce to be cut painlessly, while at the same time protecting the long-term interests of the organisation? A question made all the harder by the time pressures management is under, both because of business necessities and employee anxieties. HRP helps by considering:

the sort of workforce envisaged at the end of the exercise

the pros and cons of the different routes to get there

how the nature and extent of wastage will change during the run-down

the utility of retraining, redeployment and transfers

what the appropriate recruitment levels might be.

Such an analysis can be presented to senior managers so that the cost benefit of various methods of reduction can be assessed, and the time taken to meet targets established.

If instead the CEO announces on day one that there will be no compulsory redundancies and voluntary severance is open to all staff, the danger is that an unbalanced workforce will result, reflecting the take-up of the severance offer. It is often difficult and expensive to replace lost quality and experience.

4. Where will the next generation of managers come from?

Many senior managers are troubled by this issue. They have seen traditional career paths disappear. They have had to bring in senior staff from elsewhere. But they recognise that while this may have dealt with a short-term skills shortage, it has not solved the longer term question of managerial supply: what sort, how many, and where will they come from? To address these questions you need to understand:

the present career system (including patterns of promotion and movement, of recruitment and wastage)

the characteristics of those who currently occupy senior positions

the organisation’s future supply of talent.

This then can be compared with future requirements, in number and type. These will of course be affected by internal structural changes and external business or political changes. Comparing your current supply to this revised demand will show surpluses and shortages which will allow you to take corrective action such as:

recruiting to meet a shortage of those with senior management potential

allowing faster promotion to fill immediate gaps

developing cross functional transfers for high fliers

hiring on fixed-term contracts to meet short-term skills/experience deficits

reducing staff numbers to remove blockages or forthcoming surpluses.

Thus appropriate recruitment, deployment and severance policies can be pursued to meet business needs. Otherwise processes are likely to be haphazard and inconsistent. The wrong sort of staff are engaged at the wrong time on the wrong contract. It is expensive and embarrassing to put such matters right.

How can HRP be applied?

The report details the sort of approach companies might wish to take. Most organisations are likely to want HRP systems:

which are responsive to change

where assumptions can easily be modified

that recognise organisational fluidity around skills

that allow flexibility in supply to be included

that are simple to understand and use

which are not too time demanding.

To operate such systems organisations need:

appropriate demand models

good monitoring and corrective action processes

comprehensive data about current employees and the external labour market

an understanding how resourcing works in the organisation.

If HRP techniques are ignored, decisions will still be taken, but without the benefit of understanding their implications. Graduate recruitment numbers will be set in ignorance of demand, or management succession problems will develop unnoticed. As George Bernard Shaw said: ‘to be in hell is to drift; to be in heaven is to steer’. It is surely better if decision makers follow this maxim in the way they make and execute resourcing plans.

Planning for human resource is more important than planning for any other resource as demand for the later depends upon the size and structure of the former whether it is in a country or in an industry. Further ,management of human resources hardly begins from human resources planning .In fact it is the basis for most of the other functions.

Objectives of Human Resources Planning

The important objectives of manpower planning in an organization are

1. to recruit and retain the human resources of required quantity and quality.

2. to foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies

3. to meet the needs of the program of expansion, diversification etc.,

4. to foresee the impact of technology on work, existing employees and future human resources requirements

5. to improve the standards skill .knowledge,, ability, discipline etc.,

6. to assess the surplus or shortage of human resources and take measures accordingly.,

7. to maintain congenial industrial relations by maintaining optimum level and structure of human resources;

8. to minimize imbalances caused due to non-availability of human resources of right kind ,right number in right time and right place;

9. to make the best use of its human resources; and

10. to estimate the cost of human resources.

What is Human Resources Planning?

E.W Vetter viewed human resources planning as “ a process by which an organization should move from its current manpower position to its desired manpower position. Through planning management strives to have the right number and right kind of people at the right places at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefit”.

According to Leon C Megginson human resources planning is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members.

Human resources planning may be viewed as foreseeing the human resource requirements of an organization and the future supply of human resources and

1. making necessary adjustments between these two and organizational plans ;and

2. foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of human resources management .In this definition, human resource means skill knowledge, values, ability, commitment, motivation etc., in addition to the number of employees.

Steps In Human Resource Planning HRP Process

HRP is done by the HRD manager. He is supported by the HRD department. He takes following Steps in the process of Human Resource Planning HRP.

1. Review of Organisation's Objectives

The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.

2. Estimation of Manpower Requirements

The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.

4. Comparison of Manpower

The HRD manager then compares the manpower requirements and manpower supply.

5. In case of no difference

If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

6. In case of difference

If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.

1. Manpower Surplus

If the manpower requirements are less then the manpower supply then there is a surplus.

During manpower surplus, the HRD manager takes the following actions :-

Termination i.e removal of staff.

Lay-off.

Voluntary retirement.

2. Manpower Shortage

If the manpower requirements are greater than the manpower supply then there is manpower shortage.

During manpower shortage, the HRD manager takes the following actions :-

Promotions

Overtime

Training to improve quality.

Hire staff from outside, etc.

7. Motivation of Manpower

HRP also motivates the employers and managers by providing, financial and non-financial incentives.

8. Monitoring Manpower Requirements

The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation.

RECRUITMENT AND SELECTION

Recruitment

According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation”. Recruitment is the activity that links the employers and the job seekers. A few definitions of recruitment are:

A process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.

It is the process to discover sources of manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool. The main objective of the recruitment process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. Usually, the recruitment process starts when a manger initiates an employee requisition for a specific vacancy or an anticipated vacancy.

RECRUITMENT NEEDS ARE OF THREE TYPES

PLANNEDi.e. the needs arising from changes in organization and retirement policy.

ANTICIPATEDAnticipated needs are those movements in personnel, which an organization can predict by studying trends in internal and external environment.

UNEXPECTEDResignation, deaths, accidents, illness give rise to unexpected needs.

Purpose and Importance

Attract and encourage more and more candidates to apply in the organisation.

Create a talent pool of candidates to enable the selection of best candidates for the organisation.

Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.

Recruitment is the process which links the employers with the employees.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.

Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.

Meet the organizations legal and social obligations regarding the composition of its workforce.

Begin identifying and preparing potential job applicants who will be appropriate candidates.

Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants

Process

The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organisations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows:

Identifying the vacancy: The recruitment process begins with the human resource department receiving requisitions for

recruitment from any department of the company. These contain:

• Posts to be filled• Number of persons• Duties to be performed• Qualifications required

Preparing the job description and person specification. Locating and developing the sources of required number and type of employees

(Advertising etc).

Short-listing and identifying the prospective employee with required characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

1. Identify vacancy

2. Prepare job description and person specification

3. Advertising the vacancy

4. Managing the response

5. Short-listing

6. Arrange interviews

7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.

Sources

Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment.

SOURCES OF RECRUITMENT

Internal

1. TRANSFERSThe employees are transferred from one department to another according to their efficiency and experience.

2. PROMOTIONSThe employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according to their performance.

4. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organisations as the people are already aware of the organisational culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

External

1. PRESS ADVERTISEMENTSAdvertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.

2. EDUCATIONAL INSTITUTESVarious management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.

3. PLACEMENT AGENCIES

Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGESGovernment establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

5. LABOUR CONTRACTORSManual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs.

6. UNSOLICITED APPLICANTSMany job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organisation.

7. EMPLOYEE REFERRALS / RECOMMENDATIONSMany organisations have structured system where the current employees of the organisation can refer their friends and relatives for some position in their organisation. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

8. RECRUITMENT AT FACTORY GATEUnskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

Factors Affecting

The recruitment function of the organisations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organisation. And the external factors are those factors which cannot be controlled by the organisation. The internal and external forces affecting recruitment function of an organisation are:

FACTORS AFFECTING RECRUITMENT

Internal

The internal forces i.e. the factors which can be controlled by the organisation are:

1. RECRUITMENT POLICYThe recruitment policy of an organisation specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. It may involve organizational system to be developed for implementing recruitment programmes and procedures by filling up vacancies with best qualified people.

FACTORS AFFECTING RECRUITMENT POLICY

• Organizational objectives• Personnel policies of the organization and its competitors.• Government policies on reservations.• Preferred sources of recruitment.• Need of the organization.• Recruitment costs and financial implications.

2. HUMAN RESOURCE PLANNINGEffective human resource planning helps in determining the gaps present in the existing manpower of the organization. It also helps in determining the number of employees to be recruited and what qualification they must possess.

3. SIZE OF THE FIRMThe size of the firm is an important factor in recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel, which will handle its operations.

4. COSTRecruitment incur cost to the employer, therefore, organizations try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate.

5. GROWTH AND EXPANSIONOrganization will employ or think of employing more personnel if it is expanding it’s operations.

External

The external forces are the forces which cannot be controlled by the organisation. The major external forces are:

1. SUPPLY AND DEMANDThe availability of manpower both within and outside the organization is an important determinant in the recruitment process. If the company has a demand for more professionals and there is limited supply in the market for the professionals demanded by the company, then the company will have to depend upon internal sources by providing them special training and development programs.

2. LABOUR MARKETEmployment conditions in the community where the organization is located will influence the recruiting efforts of the organization. If there is surplus of manpower at the time of recruitment, even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc will attract more than enough applicants.

3. IMAGE / GOODWILLImage of the employer can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. Image of a company is based on what organization does and affected by industry. For example finance was taken up by fresher MBA’s when many finance companies were coming up.

4. POLITICAL-SOCIAL- LEGAL ENVIRONMENTVarious government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. For example, Government of India has introduced legislation for reservation in employment for scheduled castes, scheduled tribes, physically handicapped etc. Also, trade unions play important role in recruitment. This restricts management freedom to select those individuals who it believes would be the best performers. If the candidate can’t meet criteria stipulated by the union but union regulations can restrict recruitment sources.

5. UNEMPLOYMENT RATEOne of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). When the company is not creating new jobs, there is often oversupply of qualified labour which in turn leads to unemployment.

6. COMPETITORSThe recruitment policies of the competitors also effect the recruitment function of the organisations. To face the competition, many a times the organisations have to change their recruitment policies according to the policies being followed by the competitors.

Policy of an Organization

In today’s rapidly changing business environment, a well defined recruitment policy is necessary for organizations to respond to its human resource requirements in time. Therefore, it is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and concise recruitment policy helps ensure a sound recruitment process.

It specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. It may involve organizational system to be developed for implementing recruitment programmes and procedures by filling up vacancies with best qualified people.

COMPONENTS OF THE RECRUITMENT POLICY

The general recruitment policies and terms of the organisation Recruitment services of consultants

Recruitment of temporary employees

Unique recruitment situations

The selection process

The job descriptions

The terms and conditions of the employment

A recruitment policy of an organisation should be such that:

It should focus on recruiting the best potential people. To ensure that every applicant and employee is treated equally with dignity and respect.

Unbiased policy.

To aid and encourage employees in realizing their full potential.

Transparent, task oriented and merit based selection.

Weightage during selection given to factors that suit organization needs.

Optimization of manpower at the time of selection process.

Defining the competent authority to approve each selection.

Abides by relevant public policy and legislation on hiring and employment relationship.

Integrates employee needs with the organisational needs.

FACTORS AFFECTING RECRUITMENT POLICY

Organizational objectives Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Need of the organization.

Recruitment costs and financial implications

Recent Trends

The following trends are being seen in recruitment:

OUTSOURCINGIn India, the HR processes are being outsourced from more than a decade now. A company may draw required personnel from outsourcing firms. The outsourcing firms help the organisation by the initial screening of the candidates according to the needs of the organisation and creating a suitable pool of talent for the final selection by the organisation. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organisations for their services. Advantages of outsourcing are:

1. Company need not plan for human resources much in advance.2. Value creation, operational flexibility and competitive advantage

3. turning the management's focus to strategic level processes of HRM

4. Company is free from salary negotiations, weeding the unsuitable resumes/candidates.

5. Company can save a lot of its resources and time

POACHING/RAIDING“Buying talent” (rather than developing it) is the latest mantra being followed by the organisations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organisation might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software and the retail sector are the sectors facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.

E-RECRUITMENTMany big organizations use Internet as a source of recruitment. E- recruitment is the use

of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.

Advantages of recruitment are:

o Low cost.

o No intermediaries

o Reduction in time for recruitment.

o Recruitment of right type of people.

o Efficiency of recruitment process.

E-Recruitment

The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as “Online recruitment”, it is the use of technology or the web based tools to assist the recruitment process. The tool can be either a job website like naukri.com, the organisation’s corporate web site or its own intranet. Many big and small organizations are using Internet as a source of recruitment. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.

The internet penetration in India is increasing and has tremendous potential. According to a study by NASSCOM – “Jobs is among the top reasons why new users will come on to the internet, besides e-mail.” There are more than 18 million resume’s floating online across the world.

The two kinds of e- recruitment that an organisation can use is –

Job portals – i.e. posting the position with the job description and the job specification on the job portal and also searching for the suitable resumes posted on the site corresponding to the opening in the organisation.

Creating a complete online recruitment/application section in the companies own website. - Companies have added an application system to its website, where the ‘passive’ job seekers can submit their resumes into the database of the organisation for consideration in future, as and when the roles become available.

Resume Scanners: Resume scanner is one major benefit provided by the job portals to the organisations. It enables the employees to screen and filter the resumes through pre-defined criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the job.

Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring by the organisations. Also, the jobs can be posted on the site almost immediately and is also cheaper than advertising in the employment newspapers. Sometimes companies can get valuable references through the “passers-by” applicants. Online recruitment helps the organisations to automate the recruitment process, save their time and costs on recruitments.

Online recruitment techniques

Giving a detailed job description and job specifications in the job postings to attract candidates with the right skill sets and qualifications at the first stage.

E-recruitment should be incorporated into the overall recruitment strategy of the organisation.

A well defined and structured applicant tracking system should be integrated and the system should have a back-end support.

Along with the back-office support a comprehensive website to receive and process job applications (through direct or online advertising) should be developed.

Therefore, to conclude, it can be said that e-recruitment is the “Evolving face of recruitment.”

Advantages and Disadvantages

There are many benefits – both to the employers and the job seekers but the e-recruitment is not free from a few shortcomings. Some of the advantages and the disadvantages of e- recruitment are as follows:

Advantages of E-Recruitment are:

Lower costs to the organisation. Also, posting jobs online is cheaper than advertising in the newspapers.

No intermediaries.

Reduction in the time for recruitment (over 65 percent of the hiring time).

Facilitates the recruitment of right type of people with the required skills.

Improved efficiency of recruitment process.

Gives a 24*7 access to an online collection of resumes.

Online recruitment helps the organisations to weed out the unqualified candidates in an automated way.

Recruitment websites also provide valuable data and information regarding the compensation offered by the competitors etc. which helps the HR managers to take various HR decisions like promotions, salary trends in industry etc

Disadvantages of E-Recruitment

Apart from the various benefits, e-recruitment has its own share of shortcomings and disadvantages. Some of them are:

Screening and checking the skill mapping and authenticity of million of resumes is a problem and time consuming exercise for organisations.

There is low Internet penetration and no access and lack of awareness of internet in many locations across India.

Organisations cannot be dependant solely and totally on the online recruitment methods.

In India, the employers and the employees still prefer a face-to-face interaction rather than sending e-mails.

Types of Job Seekers

Types Of Job Seekers

1. Quid Pro QueThese are the people who say that “ I can do this for you, what can you give me” These people value high responsibilities, higher risks, and expect higher rewards, personal development and company profiles doesn’t matter to them.

2. I will be with youThese people like to be with big brands. Importance is given to brands. They are not bothered about work ethic, culture mission etc.

3. I will do you what you wantThese people are concerned about how meaningful the job is and they define meaning parameters criteria known by previous job.

4. Where do you want me to comeThese people observe things like where is your office, what atmosphere do you offer. Career prospects and exciting projects don’t entice them as much. It is the responsibility of the recruiter to decide what the employee might face in given job and thus take decision. A good decision will help cut down employee retention costs and future recruitment costs.

Both recruitment and selection are the two phases of the employment process. The differences between the two are:

1. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.

2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organisation.

3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests.

5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee.

Process

Job analysis and description

Once a vacancy arises the human resource manager will first identify and record the responsibilities and tasks which are related to the job. After analysing the responsibilities and tasks they are noted down which becomes the Job description for the job. It includes:

A job title Department of the business in which the new employee would work

Details of the tasks to be performed

Responsibilities involved

Place in the hierarchical structure

Methods of assessing the performance

Job Specification

On the basis of Job description, a job specification is made. It is a document which outlines the requirements, qualifications and qualities, skills and knowledge required for the job. It is also known as person specification.

Job Advertisement

After completing the person specification (job specification) the vacancy is advertised. It can be advertised internally (on the company notice board or newsletter) or may be advertised externally in a newspaper or magazine. The advertisement will usually contain the elements of a person specification with additional information like the name and profile of the company, date and time of interview, address of the company and the contact person etc.

Applications received and shortlisted

Once a job is advertised, there might be hundreds of application received. All of the applications received might not be suitable for the job. Thus a short listing of the applications will be done. The applications most near to the job specification will be called for interview and those who do not qualify the criteria will be rejected.

Interview

The shortlisted candidates will be called for an interview to verify their qualifications, personal qualities and aptitude for the job. It may involve a face to face discussion between the interviewer and interviewee. The firm may also conduct skill test, aptitude tests or personality test if it deems fit so.

Selecting the suitable candidate

The candidate who scores the maximum in the interview will be selected for the job and given an appointment letter.

HR Challenges

Recruitment is a function that requires business perspective, expertise, ability to find and match the best potential candidate for the organisation, diplomacy, marketing skills (as to sell the position to the candidate) and wisdom to align the recruitment processes for the benefit of the organisation. The HR professionals – handling the recruitment function of the organisation- are constantly facing new challenges. The biggest challenge for such professionals is to source or recruit the best people or potential candidate for the organisation.

In the last few years, the job market has undergone some fundamental changes in terms of technologies, sources of recruitment, competition in the market etc. In an already saturated job market, where the practices

like poaching and raiding are gaining momentum, HR professionals are constantly facing new challenges in one of their most important function- recruitment. They have to face and conquer various challenges to find the best candidates for their organisations.

The major challenges faced by the HR in recruitment are:

Adaptability to globalization – The HR professionals are expected and required to keep in tune with the changing times, i.e. the changes taking place across the globe. HR should maintain the timeliness of the process

Lack of motivation – Recruitment is considered to be a thankless job. Even if the organisation is achieving results, HR department or professionals are not thanked for recruiting the right employees and performers.

Process analysis – The immediacy and speed of the recruitment process are the main concerns of the HR in recruitment. The process should be flexible, adaptive and responsive to the immediate requirements. The recruitment process should also be cost effective.

Strategic prioritization – The emerging new systems are both an opportunity as well as a challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing the tasks to meet the changes in the market has become a challenge for the recruitment professionals.

Strategies

Recruitment is of the most crucial roles of the human resource professionals. The level of performance of and organisation depends on the effectiveness of its recruitment function. Organisations have developed and follow recruitment strategies to hire the best talent for their organisation and to utilize their resources optimally. A successful recruitment strategy should be well planned and practical to attract more and good talent to apply in the organisation. For formulating an effective and successful recruitment strategy, the strategy should cover the following elements:

1. Identifying and prioritizing jobs Requirements keep arising at various levels in every organisation; it is almost a never-ending process. It is impossible to fill all the positions immediately. Therefore, there is a need to identify the positions requiring immediate attention and action. To maintain the quality of the recruitment activities, it is useful to prioritize the vacancies whether to focus on all vacancies equally or focusing on key jobs first.

2. Candidates to targetThe recruitment process can be effective only if the organisation completely understands the requirements of the type of candidates that are required and will be beneficial for the organisation. This covers the following parameters as well:

o Performance level required: Different strategies are required for focusing on hiring high performers and average performers.

o Experience level required: the strategy should be clear as to what is the experience level required by the organisation. The candidate’s experience can range from being a fresher to experienced senior professionals.

o Category of the candidate: the strategy should clearly define the target candidate. He/she can be from the same industry, different industry, unemployed, top performers of the industry etc.

3. Sources of recruitmentThe strategy should define various sources (external and internal) of recruitment. Which are the sources to be used and focused for the recruitment purposes for various positions. Employee referral is one of the most effective sources of recruitment.

4. Trained recruitersThe recruitment professionals conducting the interviews and the other recruitment activities should be well-trained and experienced to conduct the activities. They should also be aware of the major parameters and skills (e.g.: behavioural, technical etc.) to focus while interviewing and selecting a candidate.

5. How to evaluate the candidatesThe various parameters and the ways to judge them i.e. the entire recruitment process should be planned in advance. Like the rounds of technical interviews, HR interviews, written tests, psychometric tests etc.

Expatriate Recruitment

Expatriate is a person who leaves his country to work and live in a foreign country. Generally, expatriates are the nationals from the other countries than the host and the MNC’s parent country, i.e. expatriates are the third country nationals.

The unavailability of the required skills and talents takes the organisation to source talent from other countries. The procedures and processes of recruiting and selecting the human resources are never uniform even within a single organisation. The procedures vary according to the post, the skill set required, the nature of work etc. More of it is seen in the case of recruitment of expatriates. The recruitment and selection procedures and considerations are drastically different for expatriates than that of the domestic employees. Recruitment of expatriates involves greater time, monetary resources and other indirect costs. Improper recruitment and selection can cause the expatriates to return hastily or a decline in their performance.

A mismatch between job (its requirements) and people can reduce the effectiveness of other human resource activities and can affect the performance of the employees as well as the organisation.

Recruiting expatriates require special considerations and skills to select the best person for the job. Except for a few expatriate selection policies, the expatriate selection criterion is generally organisation and nation specific.

The recruiters for recruiting the expatriates should be carefully selected and trained. The recruitment strategies for expatriates should be aligned with requirements of the job. The interviews of expatriates are designed in a manner to judge their:

Adaptability to the new culture Intercultural interaction

Flexibility

Professional expertise

Past international work experience

Tolerance and open-mindedness

Family situation

Language ability

Attitude and motivation

Empathy towards local culture

A few researches in this field also suggest that women are morel likely to be successful in certain positions as expatriates as they are more sensitive towards new culture and people. Recruitment of expatriates should be followed by cultural and sensitivity training, and language training.

Selection

SelectionOnce the potential applicants are identified, the next step is to evaluate their qualification , qualities,experiences, capabilities,etc..&make the selection. It is the process of offering jobs to the desired applicants.

Selection means choosing a few from those who apply, It is picking up of applicants or candidates with requisite qualifications and qualities to fill jobs in the organization.

Selection Process include1) Initial screening interview2) Application blank or application form3) Written examination & other selection tests 4) Comprehensive interview5) Medical examination 6) Checking the refernces7) Final employment dececision8)Placement

Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can

be done only when there is effective matching. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also save time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested.

But selection must be differentiated from recruitment, though these are two phases of employment process. Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job.

The Employee selection Process takes place in following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblity criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.

2. Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc.

3. Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased.

4. Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in room. There should be an honest communication between candidate and interviewer.

5. Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism.

6. Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.

The recruitment and selection process is important for new and established businesses alike. Your human resources department has the support and expertise of employment specialists who assist hiring managers with the procedures to ensure your company's leaders are

making wise hiring decisions. There are several pieces to the recruitment and selection process: sourcing candidates, reviewing and tracking applicants, conducting interviews and selection for employment.

Sourcing Candidates

This is the first step in the recruitment and selection process. Sourcing candidates means your employment specialist is using a variety of methods to find suitable candidates for job vacancies. Sourcing can be done via online advertising on job and career sites or professional networking and participation in trade associations. Another creative sourcing technique employment specialists utilize is monitoring employment changes at industry competitors to recruit applicants familiar with the same type of business you are operating.

Tracking Applicants

The next steps in the recruitment and selection process are tracking applicants and applications and reviewing resumes. Applicant tracking systems (ATS) are becoming extremely helpful to employers, and this technology aids in the management of job vacancies and applications for every open position. Employment specialists use ATSs to review applications and resumes. Following your employment specialist's applicant review, he can then decide which applicants he wants to interview. With some ATSs, applicants can track application status. An ATS can be developed for organizations of any size, including small businesses.

Preliminary Phone Interview

Conducting a preliminary phone interview is essential for obtaining information about the applicant's background, work history and experience. When your employment specialist conducts a preliminary interview, the objective is to determine whether or not the applicant has the requisite skills and qualifications for the job vacancy. Consistent with widely accepted human resources practices, the Texas Association of Counties recommends, "A quick initial review will reveal those applicants who obviously do not meet the minimum requirements for the job." While an employment specialist may probe further into the applicant's experience and interpersonal skills, the purpose of this interview is to narrow the field of applicants to send for consideration by the hiring manager.

Face-to-Face Interview and Selection

In this stage of the recruitment and selection process, the hiring manager reviews the applications and resumes the employment specialist forwarded to her. The hiring manager invites the applicant to interview face-to-face; communication about the interview and scheduling is generally handled by the employment specialist. This ensures that all qualified applicants receive the same information. At times, the employment

specialist will prepare the applicant for the face-to-face interview. After the hiring manager interviews the applicant, she further narrows the field of candidates from which to select for the job opening. In many companies, there is an additional interview by the same hiring manager or perhaps a panel of interviewers.

Extending an Employment Offer

Once the hiring manager decides which candidate is most suitable for the job vacancy, it's time to inform the candidate of pre-employment matters, such as background inquiries, drug tests and, if applicable, licensing information. When recruiting for positions where you negotiate the terms of employment, compensation and benefits, and other issues, a draft employment offer may change hands from the candidate to the employer until the parties reach an agreement. An employment offer should always be in writing to document the terms of your agreement with your prospective employee.

Methods

1. Interviews - all types

Interviews can take many forms and styles. The type of interviewing recommended throughout the University is Criteria-Based Behavioural Interviewing. This type of interviewing is based around the criteria identified in the person specification – the essential and desirable criteria. It is therefore really important to prepare a good person specification right at the start of the recruitment process.

It is also important to identify how each of the criteria will be assessed. Some items in the criteria e.g. a qualification, can be assessed by reference to the application form, these can be called the “hard or factual criteria” and can usually be assessed on the application form or c.v.

Other criteria, e.g. interpersonal skills, which can be called “soft criteria” can only be assessed through an interview. By clearly identifying your criteria on the person specification and how you intend to assess each of these, you will ensure that you are:

thoroughly checking each candidate against the right criteria able to plan the whole process to include any tests etc

fairly applying the criteria to each candidate

able to discriminate fairly between candidates

not missing an important aspect of the requirements

The interview will tend to concentrate therefore on the soft criteria, though you will also be checking to make sure the candidate does possess the “hard data” they have claimed in their application.

The interview will follow a structure and should be planned and prepared in advance. For more information on interviewing, you should really attend the training course.

A few general tips on interviewing are included below:

Purpose of an Interview:

1. Does candidate meet person specification – knowledge, skills, experience, personal qualities, behaviours?

2. Does candidate know enough to decide this is right job and organisation for them? (so they stay)

3. Good impression of University? (even if not successful)

General principles of Criteria-Based Behavioural Interviews

1. Recruit for attitude, train for skills2. Best indicator of future behaviour is past behaviour

3. Evidence-based approach

4. Based on thorough person specification

5. Relaxed but not informal format

6. Candidate stretched not stressed

7. Probing questions not personal

8. Do not reveal personal views

Good Interviews should:

1. Be friendly2. Stretch the candidate

3. Make the candidate work/think hard

4. Should cover a lot of ground

5. Really test the candidates skills

6. Be very thorough

7. Be 80% to 90% of candidate talking

Common Issues of Poor Interviews:

1. Interviewers talked too much – 50% or more2. Interviewers read out their questions

3. Questions long and complex

4. Interviewers did not probe

5. Candidates not given an opportunity to expand answers

6. Interview finished too quickly (before scheduled to finish)

7. Interviewer did not make much eye contact

8. Interviewer shuffling papers (obviously has not read cv prior to interview)

Hints and Tips – Do’s

1. Prepare room for candidates comfort eg light, heat2. Prepare yourself – e.g. read c.v.s again

3. Prepare questions in advance

4. Use a prepared opening

5. Use pauses and silence

6. Open questions to start

7. Try to move smoothly from topic to topic

8. Ask one question at a time

9. Avoid jargon

10. Try to look interested!

11. Maintain eye contact

12. Keep notes to minimum but regular

13. Offer candidate the opportunity to ask questions

Hints and Tips – Don’ts

1. Don’t accept glib answers – make sure you probe. If they say they are good at something, how do they know? What evidence can they give you that this is true?

2. Don’t do most of the talking – you only collect evidence when the candidate is talking

3. Don’t react violently to anything said, e.g. suddenly write a reply down when you have not taken any other notes

4. Don’t criticise or argue, or deliberately provoke the candidate – this style of interviewing relies on a good rapport to relax the candidate so that you can see them as they really are. Upset the rapport and they will not behave in their normal way

5. Lose eye contact with the candidate – get colleagues to take notes from your questions so that you can keep the rapport

A Typical Interview Plan

1. Introduction2. Broad questions - gain sufficient understanding of experience and background

3. Criteria-based questions from Person Specification

4. Follow up probing questions - not scripted but from candidates responses

5. Each panel member to have assigned criteria

6. Chair to “mop up” if not enough searching questions

7. Candidates ask questions

8. “Sell” job, University, rewards and terms and conditions

9. Close

Using the Interview Assessment Grids

1. Not just bureaucracy2. Use as a tool to help discussion/decision

3. Complete the person criteria before you set questions and before the interview – at short listing stage

4. Set your standards for each of the key person criteria (eg good communication skills) before you interview. Every person specification has communication skills as an important criteria but what does it mean in your job – is it passing simple information to single enquirers, explaining complex information to groups of people, or persuading and influencing government departments to change their policies?

5. Share this understanding with the panel

6. Each panel member should assess each candidate separately and then in plenary

7. Remember, you should be looking for a body of positive and contrary evidence for any criteria, not relying on a single piece of evidence

At the end of every interview: Did it go well, did you give the candidate every opportunity to state their case?

1. What was the opening like?2. How was my rapport and body language with the candidate

3. What did I learn from their body language?

4. Did the questions work, were they clear and unambiguous?

5. Did we probe well?

6. Did we get the evidence we needed?

7. Were all the criteria covered?

8. What was the close like, were the next steps clear?

2. Presentations

Presentations can be used in a variety of ways depending on how they relate to the job description and the normal working practices expected of the post.

Example 1: for a post which is required to respond to a committee or the public in a very short timescale given a few facts, candidates could be asked to simply arrive early to the interview, be quickly briefed and given half an hour to prepare a 5 minute presentation, and deliver it orally with no supports.

Example 2 : However, if the job requires a person to take time to prepare and deliver lectures of say 45 minutes, they would normally have time to prepare properly, so it would be unreasonable to give them the same task as the one above. They should receive the topic well in advance and have time beforehand to prepare their delivery.

In assessing presentations, it is important to have the decided on the criteria against which each candidate will be marked. These could include criteria which will also be assessed at interview, but may take on a particular aspect – e.g. communications skills could be assessed in the interview but will be mainly looking at how the person communicates with the panel and gets their points across, as well as how they interact with the members of the panel. In a lecture style presentation, the candidates’ communications skills to a large group will be assessed, which is much more formal delivery.

Other criteria can be assessed in the presentation – ability to assimilate information quickly could be included in Example 1 but not in 2. Strategic perspective skills might be included if the topic allows it. Judgement and self confidence could also be assessed through a presentation.

For the panel of interviewers, it is important that they attend all the presentations if possible. If others are involved in assessing e.g. an audience for a lecture presentation, then the audience should be allowed to provide their views to the panel to make the process worthwhile. This may be done by asking the audience to email to one person on the panel, giving the audience a framework for their comments. This may not mean specifying all the criteria to them but perhaps asking them to comment on tone, delivery, content, suitability, interest, enthusiasm etc.  

Finally, the panel should be prepared to give feedback on candidates’ presentations.

3.  Tests

It is possible that when defining the person specification criteria that some criteria prove hard to assess either through the application form or c.v., or via the interview. For example, if some IT skills are needed for the posts, such as Access database skills, how will you know that the candidates meet the standard that you are expecting in the job? A candidate can tell you or write down that they have these skills, and even describe how they use the system, but it is hard to be sure. If this is an important part of the role, it may be worth using a test. In this case, the recruitment advisor could assist you in developing a test to be used as part of the shortlisting process, perhaps to reduce a field of 12 candidates to 4 or 5 for interviews.

There are also tests e.g. numerical reasoning, verbal reasoning, critical thinking, manual dexterity which can be bought off the shelf. We do not currently stock these but can access and deliver them on your behalf.

4.  Psychometric tests

These are particularly useful if you want to assess candidates for managerial or senior appointments or candidates for appointments where there is a special need for the post -  such as strong relationship building skills. These types of test are especially good at assisting with assessing how candidates are likely to behave, for example, towards a manager, towards their peers, and towards their subordinates. They will often provide a profile which should be discussed with the candidate to check validity, as they are self perception questionnaires. Candidates should also be given feedback on the profile. The profile should be a part of the assessment, contributing perhaps up to 10% towards the final decision. They should be used carefully as they need to be used in the right way by properly trained assessors.

HUMAN RESOURCE DEVELOPMENT

Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.

The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers.

Organizations have many opportunities for human resources or employee development, both within and outside of the workplace.

Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as

in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.

According to American Society for Training and Development (ASTD),

"HRD is the integrated use of :-

training and development,

organisational development, and

career development to improve individual, group and organisational effectiveness."

Features of Human Resource Development HRD

The nature / scope / characteristics or features of HRD are as follows :-

1. Training and Development

HRD involves training and developing the employees and managers. It improves their qualities, qualifications and skills. It makes them more efficient in their present jobs. It also prepares them for future higher jobs.

2. Organisational Development (OD)

HRD also involves Organisational Development. OD tries to maintain good relations throughout the organisation. It also solves problems of absenteeism, internal conflicts, low productivity and resistance to change.

3. Career Development

HRD also involves career planning and development of employees. It helps the employees to plan and develop their careers. It informs them about future promotions and how to get these promotions. So HRD helps the employee to grow and develop in the organisation.

4. Performance Appraisal

HRD conducts Performance Appraisal, Potential Appraisal, etc. It informs the employees about their strengths and weaknesses. It also advises them about how to increase their strengths and how to remove their weaknesses.

5. Multidisciplinary

HRD is multidisciplinary. That is, it uses many different subjects. It uses education, management, psychology, communication, and economics. HRD uses all these subjects for training and developing the employees.

6. Key Element for solving problems

Now-a-days an organisation faces many different problems. These problems are caused due to the economic, technological and social changes. These problems can be solved only by knowledge, skill and creative efforts. This knowledge, skill, etc. is achieved from HRD. Therefore, HRD is a key element for solving problems in the organisation.

7. Continuous in Nature

HRD is not a one time affair. It is a continuous process. Development of human resources never stops. This is because continuous changes happen in the organisation and environment.

8. Integrated use of sub-systems

HRD system involves the integrated use of sub-systems such as performance appraisal, potential appraisal, career planning, training, etc.

9. Placement

HRD places the right man in the right job. Placement is based on performance appraisal, potential appraisal, training, etc. Proper placement gives satisfaction to the employee, and it increases the efficiency.

10. Promotions and Transfer

HRD also gives promotions and transfers to the employees based on performance appraisals, etc.

11. Motivation by Rewards

HRD also motivates the employees by giving them rewards for performing and behaving better, suggesting new ideas, etc. Financial and non-financial rewards are given.

HRD Strategies are a plan that defines how the human resources would be utilized through the use of an integrated array of training, organizational development and career development efforts to achieve individual, organizational objectives

Major HRD Strategies

• Communications Strategy:

In today’s changing scenario, it is essential to educate and train employees about the change

• Accountability And Ownership Strategy:

Employee’s accountability and ownership leads to higher productivity and customer excelleration.

• Quality Strategy:

Quality needs to be fostered in the employees through training and development.

• Cost Reduction Strategy:

Every employee’s contribution in savings is crucial as small contributions from each employee can be pooled by organizations to save substantial savings at the end of a given period and enhance its competitive strategy.

• Intrapreneurship Strategy:

Every employee needs to be an independent entrepreneur, who can generate ideas and bring them to reality by using the existing resources and support of the org to create innovative and creative products and services.

• Culture Building strategy:

Org’s valuing its employees have a sustainable competitive edge over competitors because employees are highly charged, motivated and commitment to the org.

• Systematic Training Strategy:

The planning and organization of formal on-job training and off-job training leads to improving vital employee characteristics, build and sustain appropriate work culture and brings in more professionalism in action.

• Learning Strategy:

Continuous development and learning environments promote self development of employees, of self and by self.

Design HRD Strategy

• Getting Big Picture:

Understanding of business strategy to highlight the key deriving forces of the business such as-

Technology

Distribution

Competition

Markets

• Developing a Mission statement:

The mission statement should relate to people side of the business. The words or references should not be idealistic statements-it is the actual process of thinking through the issues in a formal manner.

• Conducting SWOT analysis of the organization:

Focus should be on internal strength and weakness of the people side such as current skills & capability and research the external business and market environment to highlight the opportunities and threats.

• Conducting a detailed HR Analysis:

It concentrate on the organization’s culture, organizational structure, people and COPS (Culture, org, people, systems). Then gap analysis can be undertaken by examining present status and desired status.

• Conducting SWOT analysis of the organization:

Focus should be on internal strength and weakness of the people side such as current skills & capability and research the external business and market environment to highlight the opportunities and threats.

• Conducting a detailed HR Analysis:

It concentrate on the organization’s culture, organizational structure, people and COPS (Culture, org, people, systems). Then gap analysis can be undertaken by examining present status and desired status.

• Implementation and evaluation of the action plans:

The ultimate purpose of developing a human resource development strategy is to ensure that the objectives set are mutually supportive so that reward sys are integrated with employee training and career development.

HRD SYSTEMS

HRD is a profession today. It has a body of knowledge and this knowledge is transferred to younger generations through management institutes in India. By now HRD is a well-recognized function in organizations. HRD has professional bodies supporting its knowledge generation, knowledge dissemination and capacity building in organizations. HRD has also generated consulting firms which provide exclusive HRD services for organizations in need. Thus HRD is a well-recognized profession in India today.

The subsequent topics of this chapter take the readers through various aspects of this profession.

A. WHAT IS HRD?

HRD is based on the two assumptions: HRD makes sense only when it contributes towards business improvement and business excellence. HRD also strongly believe that good people and good culture make good organizations.

HRD means building:

Competency in people Commitment in people Culture in the organization

HRD means building competencies. The most important HRD function is to build competencies in each and every individual working in an organization. Competencies are to be built and multiplied in roles and individuals.

HRD means building commitment in people. Competencies will not make sense without commitment. Think of an organization where all the employees are competent but not willing to put into use their competencies. Hence, competencies without commitment will not contribute towards effectiveness.

HRD is all about building a development culture in an organization. HRD ensures that culture-building practices are adopted from time to time to create a learning environment in the organization. It builds such a culture that the built-in culture in turn will build competencies and commitment in the people who work with the organization.

HRD can be defined as the branch of human resources management function that endeavors to build competencies, commitment and a learning culture in organizations with the purpose of bringing in competitive advantages to achieve business excellence in all its operations.

B. HRD SYSTEMSHRD functions are carried out through its systems and sub systems. HRD has five major systems and each of the systems has sub systems as elaborated below: the first three systems viz., Career system,

Work system and Development system, are individual and team oriented while the fourth and the fifth systems viz. Self renewal system and Culture Systems are organization based.

1. Career system: As an HRD system, career system ensures attraction and retention of human resources through the following sub-systems.

Manpower planning Recruitment Career planning Succession planning Retention

2. Work system: Work-planning system ensures that the attracted and retained human resources are utilized in the best possible way to obtain organizational objectives. Following are the sub systems of the work planning system.

Role analysis Role efficacy Performance plan Performance feedback and guidance Performance appraisal Promotion Job rotation Reward

3. Development system: The environmental situation and the business scenario is fast changing. The human resources within the organization have to raise upto the occasion and change accordingly if the organization wants to be in business. The development system ensures that the retained (career system) and utilized (work system) human resources are also continuously developed so that they are in a position to meet the emerging needs of the hour. Following are some of the developmental sub - systems of HRD that make sure that human resources in the organization are continuously developed.

Induction Training Job enrichment Self-learning mechanisms Potential appraisal Succession Development Counselling Mentor system

4. Self-renewal system: It is not enough to develop individuals and teams in the organizations but occasionally there is a need to renew and re-juvenate the organization itself. Following are some of the sub systems that can be utilized to renew the organization.

Survey Action research Organizational Development interventions Organizational Retreats

5. Culture system: Building a desired culture is of paramount importance in today’s changed business scenario. It is the culture that will give a sense of direction, purpose, togetherness, and teamwork. It is to be noted that whether an organization wants it or not along with the time common ways of doing things (culture) will emerge. If not planned carefully and built systematically such common traits may not help the business but may become a stumbling block. Hence it is very important to have cultural practices that facilitate business. Some of the culture building subsystems are given below:

Vision, Mission and Goal Values Communication Get-togethers and celebrations Task forces Small Groups

C. HRD PROCESSESHRD is a process-oriented function. HRD functions in many organizations fail because the processes involving the systems are not adequately addressed. The concept of process essentially concerns the question of “how” and to a great extent the question of “why “. It emphasises the behavioural and interactional dimensions. All the HRD processes are centred around four constituents of an organization viz, the employee, role, teams and the organization itself. Each of the unit has its own behavioural patterns and framework, which, if not addressed adequately may not bring in the desired outcomes. It is through these processes that the HRD systems are effectively implemented. Implementations of the HRD systems are, in turn indented to bring in right processes in organizations. Hence HRD systems and HRD processes are closely linked. Their relationships are well explained by Rao (1990).

1.Individual: Individual is the basic constituent of an organization. All the behavioural pattern and dynamisms emerge from individuals. Hence individual based HRD process explained below are vital for HRD function and for implementation of the HRD systems.

Efficacy Effectiveness Styles Leadership

2.Role: Role is a dynamic entity which involves the expectations of significant others and self from the position of the role holder. A large number of behavioural patterns and dynamism in organizations are

centred around the roles. The role occupier and all others who have some linkage or relationship to that role form a constituent. Following are some of the role related, HRD processes in organizations.

Competencies for job performance Commitment Motivation Frustration, Stress & Burnout

3.Teams: Work in organizations are performed through teams or groups. When individuals begin to work in team, behavioural patterns and dynamisms emerge. Following HRD processes are to be addressed if team work should bring in the desired results.

Communication Feedback Conflict resolution Collaboration

4.Organization: A large number of HRD processes are organization related. Unless and until these processes are in place, HRD cannot take off. However, in a number of organizations as a result of implementation of HRD systems, these processes were set

right. HRD systems can contribute towards the development and maturity of these processes.

Organizational Climate Communication Learning Organization Organizational Change Organizational Development

PERFORMANCE MANAGEMENT AND APPRAISAL

The role of HR in the present scenario has undergone a sea change and its focus is on evolving such functional strategies which enable successful implementation of the major corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR works towards facilitating and improving the performance of the employees by building a conducive work environment and providing maximum opportunities to the employees for participating in organizational planning and decision making process. Today, all the major activities of HR are driven towards development of high performance leaders and fostering employee motivation. So, it can be interpreted that the role of HR has evolved from merely an appraiser to a facilitator and

an enabler.

Performance management is the current buzzword and is the need in the current times of cut throat competition and the organizational battle for leadership. Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progressreview and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements. The process of performance management starts with the joining of a new incumbent in a system and ends when an employee quits the organization. Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework. It is a means for promoting superior performance by communicating expectations, defining roles within a required competence framework and establishing achievable benchmarks.

According to Armstrong and Baron (1998), Performance Management is both a strategic and an integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals. The term performance management gained its popularity in early 1980’s when total quality management programs received utmost importance for achievement of superior standards and quality performance. Tools such as job design, leadership development, training and reward system received an equal impetus along with the traditional performance appraisal process in the new comprehensive and a much wider framework. Performance management is an ongoing communication process which is carried between the supervisors and the employees through out the year. The process is very much cyclical and continuous in nature.

A performance management system includes the following actions.

Developing clear job descriptions and employee performance plans which includes the key result areas (KRA') and performance indicators.

Selection of right set of people by implementing an appropriate selection process.

Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks.

Providing continuous coaching and feedback during the period of delivery of performance.

Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement.

Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans.

Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks.

Providing promotional/career development support and guidance to the employees.

Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.

A performance management process sets the platform for rewarding excellence by aligning individual employee accomplishments with the organization’s mission and objectives and making the employee and the organization understand the importance of a specific job in realizing outcomes. By establishing clear performance expectations which includes results, actions and behaviors, it helps the employees in understanding what exactly is expected out of their jobs and setting of standards help in eliminating those jobs which are of no use any longer. Through regular feedback and coaching, it provides an advantage of diagnosing the problems at an early stage and taking corrective actions.

To conclude, performance management can be regarded as a proactive system of managing employee performance for driving the individuals and the organizations towards desired performance and results. It’s about striking a harmonious alignment between individual and organizational objectives for accomplishment of excellence in performance.

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Many writers and consultants are using the term “performance management” as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context. A performance management system includes the following actions.

* Develop clear job descriptions.

* Select appropriate people with an appropriate selection process.

* Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

* Provide effective orientation, education, and training.

* Provide on-going coaching and feedback.

* Conduct quarterly performance development discussions.

* Design effective compensation and recognition systems that reward people for their contributions.

* Provide promotional/career development opportunities for staff.

* Assist with exit interviews to understand WHY valued employees leave the organization.

An Effective Performance Management Process (PMP):

Maximizes staff engagement, development, and performance Is consistent across units to enhance full development and utilization

of talent

Remains flexible, efficient, measurable, fair, transparent

Provides better alignment of staff roles and goals with the university’s mission

Promotes on-going and proactive succession management

Cornell’s Performance Management Philosophy:

Addresses the relationship of employees to the institution, from the time they are recruited, through their growth and development, to the time they depart

Engages and develops employees throughout the year

Establishes goals and measures performance to those goals

Depends on the supervisor giving clear, developmental feedback

Includes a review of past performance and goals and focuses on future development opportunities that are aligned to individual, unit, and university goals

The Performance Management Process Model

Process

Performance appraisals, performance reviews, appraisal forms, whatever you want to call them, let's call them gone. As a stand-alone, annual assault, a performance appraisal is universally disliked and avoided. After all, how many people in your organization want to hear that they

were less than perfect last year? How many managers want to face the arguments and diminished morale that can result from the performance appraisal process?

How many supervisors feel that their time is well-spent professionally to document and provide proof to support their feedback - all year long? Plus, the most important outputs for the performance appraisal, from each person's job, may not be defined or measurable in your current work system. Make the appraisal system one step harder to manage and tie the employee's salary increase to their numeric rating.

If the true goal of the performance appraisal is employee development and organizational improvement, consider moving to a performance management system. Place the focus on what you really want to create in your organization - performance management and development. As part of that system, you will want to use this checklist to guide your participation in the performance management and development process. You can also use this checklist to help you in a more traditional performance appraisal process.

In a recent Human Resources Forum poll, 16% of the people responding have no performance appraisal system at all. Supervisory opinions, provided once a year, are the only appraisal process for 56% of the respondents. Another 16% described their appraisals as based solely on supervisor opinions, but administered more than once a year.

If you follow this checklist, I am convinced you will offer a performance management and development system that will significantly improve the appraisal process you currently manage. Staff will feel better about participating and the performance management system may even positively affect - performance.

Preparation and Planning for Performance Management

Much work is invested, on the front end, to improve a traditional employee appraisal process. In fact, managers can feel as if the new process is too time consuming. Once the foundation of developmental goals is in place, however, time to administer the system decreases. Each of these steps is taken with the participation and cooperation of the employee, for best results.

Performance Management and Development in the General Work System

Define the purpose of the job, job duties, and responsibilities. Define performance goals with measurable outcomes.

Define the priority of each job responsibility and goal.

Define performance standards for key components of the job.

Hold interim discussions and provide feedback about employee performance, preferably daily, summarized and discussed, at least, quarterly. (Provide positive and constructive feedback.)

Maintain a record of performance through critical incident reports. (Jot notes about contributions or problems throughout the quarter, in an employee file.)

Provide the opportunity for broader feedback. Use a 360 degree performance feedback system that incorporates feedback from the employee's peers, customers, and people who may report to him.

Develop and administer a coaching and improvement plan if the employee is not meeting expectations.

Immediate Preparation for the Performance Development Planning Meeting

Schedule the Performance Development Planning (PDP) meeting and define pre-work with the staff member to develop the performance development plan (PDP).

The staff member reviews personal performance, documents self-assessment comments and gathers needed documentation, including 360 degree feedback results, when available.

The supervisor prepares for the PDP meeting by collecting data including work records, reports, and input from others familiar with the staff person’s work.

Both examine how the employee is performing against all criteria, and think about areas for potential development.

Develop a plan for the PDP meeting which includes answers to all questions on the performance development tool with examples, documentation and so on.

The Performance Development Process (PDP) Meeting

Establish a comfortable, private setting and rapport with the staff person. Discuss and agree upon the objective of the meeting, to create a performance

development plan.

The staff member discusses the achievements and progress he has accomplished during the quarter.

The staff member identifies ways in which he would like to further develop his professional performance, including training, assignments, new challenges and so on.

The supervisor discusses performance for the quarter and suggests ways in which the staff member might further develop his performance.

Add the supervisor's thoughts to the employee's selected areas of development and improvement.

Discuss areas of agreement and disagreement, and reach consensus.

Examine job responsibilities for the coming quarter and in general.

Agree upon standards for performance for the key job responsibilities.

Set goals for the quarter.

Discuss how the goals support the accomplishment of the organization's business plan, the department's objectives and so on.

Agree upon a measurement for each goal.

Assuming performance is satisfactory, establish a development plan with the staff person, that helps him grow professionally in ways important to him.

If performance is less than satisfactory, develop a written performance improvement plan, and schedule more frequent feedback meetings. Remind the employee of the consequences connected with continued poor performance.

The supervisor and employee discuss employee feedback and constructive suggestions for the supervisor and the department.

Discuss anything else the supervisor or employee would like to discuss, hopefully, maintaining the positive and constructive environment established thus far, during the meeting.

Mutually sign the performance development tool to indicate the discussion has taken place.

End the meeting in a positive and supportive manner. The supervisor expresses confidence that the employee can accomplish the plan and that the supervisor is available for support and assistance.

Set a time-frame for formal follow up, generally quarterly.

Following the Performance Development Process Meeting

If a performance improvement plan was necessary, follow up at the designated times. Follow up with performance feedback and discussions regularly throughout the quarter.

(An employee should never be surprised about the content of feedback at the performance development meeting.)

The supervisor needs to keep commitments relative to the agreed upon development plan, including time needed away from the job, payment for courses, agreed upon work assignments and so on.

The supervisor needs to act upon the feedback from departmental members and let staff members know what has changed, based upon their feedback.

Forward appropriate documentation to the Human Resources office and retain a copy of the plan for easy access and referral.

Performance Appraisal

People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization.Performance appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society.

The history can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept.It is an indispensable part of performance measurement. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align the individual performances with the organizational goals and also review their performance.

Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. Here at naukrihub, we attempt to provide an insight into the concept of performance appraisal, the methods and approaches of performance appraisal, sample performance appraisal forms and the appraisal softwares available etc

Process

ESTABLISHING PERFORMANCE STANDARDSThe first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms.

In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDSOnce set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Pre-Requisites

The essentials of an effective performance system are as follows:

Documentation – means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings.

Standards / Goals – the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.

Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. Evaluation technique – An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee.

Communication – Communication is an indispensable part of the Performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process.

Feedback – The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance.

Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively.  

Challenges

An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful. The main Performance Appraisal challenges involved in the performance appraisal process are:

Determining the evaluation criteriaIdentification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms

Create a rating instrument The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.

Lack of competence Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.

Errors in rating and evaluation Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees.

ResistanceThe appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

Purpose

Performance Appraisal is being practiced in 90% of the organisations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior – subordinates and management – employees.

According to a recent survey, the percentage of organisations (out of the total organisations surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the diagram below:

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions – 80% Training and development needs – 71%

Identifying the gaps in desired and actual performance and its cause – 76%

Deciding future goals and course of action – 42%

Promotions, demotions and transfers – 49%

Other purposes – 6% (including job analysis and providing superior support, assistance and counseling)

Performance Appraisal and Career Development

Performance appraisal is a part of career development. The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate

their contribution towards the organizational goals.

Performance appraisal as Career Development leads to the recognition of the work done by the employees, many a times by the means of rewards and appreciation etc. It plays the role of the link between the organization and the employees’ personal career goals.

Potential appraisal, a part of Performance appraisal, helps to identify the hidden talents and potential of the individuals. Identifying these potential talents can help in preparing the individuals for higher responsibilities and positions in the future. The performance appraisal process in itself is developmental in nature.

Performance appraisal is also closely linked to other HR processes like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Based on the evaluation, employees can develop their career goals, achieve new levels of competencies and chart their career progression. Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses.

Performance appraisal – Approaches

Traditional approachTraditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees.

This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees

Therefore, this approach is also called as the overall approach. In 1950s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed.

Performance appraisal - Modern approach

The modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance appraisal is taken as a tool to identify better performing employees from others, employees’ training needs, career development paths, rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The results of performance appraisals are used to take various other HR decisions like promotions, demotions, transfers, training and development, reward outcomes. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve communication throughout the organization.

The modern approach to Performance appraisal is a future oriented approach and is developmental in nature. This recognizes employees as individuals and focuses on their development.

Methods and Techniques

Traditional Method

1. ESSAY APPRAISAL METHOD This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODSIn this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

5. FIELD REVIEWIn this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHODThe rater is given a checklist of the descriptions of the behaviour of the employees on job. The

checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALEIn this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTIONTo eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

Modern Methods

ASSESSMENT CENTRES -

An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.

In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method tries

to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

360 Degrees Appraisal

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors -

anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal2. Superior’s appraisal3. Subordinate’s appraisal4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

MBO

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

THE MBO PROCESS

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:

Specific

MeasurableAchievableRealistic, andTime bound.

The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment.

Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

Assessment Centers

Assessment centre refers to a method to objectively observe and assess the people in action by experts or HR professionals with the help of various assessment tools and instruments. Assessment centers simulate the employee’s on the job environment and facilitate the assessment of their on the job performance.

An assessment centre typically involves the use of methods like social/informal events, tests and exercises,

assignments being given to a group of employees to assess their competencies and on the job behaviour and potential to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

An assessment centre for Performance appraisal of an employee typically includes:

Social/Informal Events – An assessment centre has a group of participants and also a few assessors which gives a chance to the employees to socialize with a variety of people and also to share information and know more about the organisation.

Information Sessions – information sessions are also a part of the assessment centres. They provide information to the employees about the organisation, their roles and responsibilities, the activities and the procedures etc.

Assignments- assignments in assessment centres include various tests and exercises which are specially designed to assess the competencies and the potential of the employees. These include various

interviews, psychometric tests, management games etc. all these assignments are focused at the target job.

The following are the common features of all assessment centres:

The final results is based on the pass/fail criteria

All the activities are carried out to fill the targeted job.

Each session lasts from 1 to 5 days.

The results are based on the assessment of the assessors with less emphasis on self-assessment

immediate review or feedback are not provided to the employees.

An organization’s human resources can be a vital competitive advantage and assessment centre helps in getting the right people in right places. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees

PA and Change Management

The performance appraisal process provides an opportunity for introducing organizational change. It facilitates the process of change in the organizational culture. The interactive sessions between the management and the employees, the mutual goal setting and the efforts towards the career development of the employees help the organization to become a learning organization. Conducting performance appraisals on a regular basis helps it to become an ongoing part of everyday practice and helps employees to take the responsibility of their work and boosts their professional development.

Various studies in the field of human resources have already proved that performance appraisal process can affect the individual performance (in a negative or positive way), thus having an impact on the collective performance.

Performance appraisal: An opportunity for an organisational culture shift

Performance appraisal process focuses on the goal setting approach throughout the organisation.

Performance appraisal helps the clarity and understanding of the roles and responsibilities of the employees.

The performance appraisal processes have the potential positive effects on recruitment

It increases organisational effectiveness i.e. what to do and how to do through a formal and structured approach.

Some evidence of the beneficial effects of team rewards

Therefore, performance appraisal is also an important link in the process of change in organization culture.

PA and TQM

According to Sashkin and Kiser, "Total Quality Management (TQM) may be defined as creating an organisational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction." TQM refers to the continuous improvement in the quality of work of all employees with the focus on satisfaction of the customers.

Elements of TQM are:

Meeting customers requirements,

Continuous improvement

Empowerment of employees.

Both TQM and Performance appraisal evaluation are focused on increasing the productivity of the organisation through continuous improvement. They both facilitate the systematic management of all the processes, actions and practices at all levels in the organisation.

Some of the benefits of both the performance appraisal and TQM are:

Improvement in the performance of the employees

Brings quality consciousness

Better utilization of resources

Commitment to higher quality

But there also exists a few other schools of thought which refute the compatibility of the TQM and performance appraisal. According to them, both TQM and Performance appraisals differ in their fundamental nature, characteristics and requirements making it impossible to combine them.

Some fundamental differences between the two are as follows:

TQM is team – based whereas performance appraisals are designed for individuals i.e. it undermines teamwork.

TQM focuses on customer satisfaction whereas performance appraisal focuses on the improving the performance of the employees.

Performance appraisal generally results in some rewards like increased pay etc. whereas TQM may or

may not yield visible results.

Performance appraisal can sometimes, encourage an employee to focus on his personal goals (like his promotion) rather than the organisational goals. Therefore, the suitable practice should be chosen carefully by the top management and the leaders of the organization

COMPETENCY MAPPING

Competency Mapping is a process of identify key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization. To ensure we are both on the same page, we would define a competency as a behavior (i.e. communication, leadership) rather than a skill or ability.

The steps involved in competency mapping with an end result of job evaluation include the following:

1) Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ). This can be provided for incumbents to complete, or you can conduct one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs.

2) Using the results of the job analysis, you are ready to develop a competency based job description. A sample of a competency based job description generated from the PIQ may be analyzed. This can be developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies.

3) With a competency based job description, you are on your way to begin mapping the competencies throughout your human resources processes. The competencies of the respective job description become your factors for assessment on the performance evaluation. Using competencies will help guide you to perform more objective evaluations based on displayed or not displayed behaviors.

4) Taking the competency mapping one step further, you can use the results of your evaluation to identify in what competencies individuals need additional development or training. This will help you focus your training needs on the goals of the position and company and help your employees develop toward the ultimate success of the organization.

Competency mapping is a process through which one assesses and determines one’s strengths as an individual worker and in some cases, as part of an organization. It generally examines two areas: emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decision-making. Large organizations frequently employ some form of competency mapping to understand how to most effectively employ the competencies of strengths of workers. They may also use competency mapping to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work.

Competency mapping is a process with the help of which the employer, or the human resource team decides, that where would a particular person work best, as per his aptitude and temperament. There

are several different factors that are considered during a competency mapping process. There are also some simple processes that have been made by experts in the field of clinical psychology. Some important characteristics of a person's competency have been elaborated below.

* Constitution: Every person's personality is based upon a definite constitution. Some aspects about work such as a person's ability to work as a team member or a team leader or even his temperament to work individually are affected by this constitution.* Traits: Traits can be physical and also behavioral. The traits are usually related to the constitution. Knowing the traits of a person is absolutely important as the management's behavior with every person differs.* Self Concept: Every person has an interpretation about himself and some self ideals. The management bears in mind these simple ideals, even during day-to-day work, due to the fact that, when these ideals are respected the employee tends to remain happy and productive.* Skill and Knowledge: Every employee has different skills and knowledge. Competency mapping helps the company to know more about the person's skills and knowledge. It must be noted that even a simple virtue of being patient is treated as a skill by the recruiters.

Over the past 10 years, human resource and organizational development professionals have generated a lot of interest in the notion of competencies as a key element and measure of human performance. Competencies are becoming a frequently-used and written-about vehicle for organizational applications such as:

* Defining the factors for success in jobs (i.e., work) and work roles within the organization* Assessing the current performance and future development needs of persons holding jobs and roles* Mapping succession possibilities for employees within the organization* Assigning compensation grades and levels to particular jobs and roles* Selecting applicants for open positions, using competency-based interviewing techniques

Competencies include the collection of success factors necessary for achieving important results in a specific job or work role in a particular organization. Success factors are combinations of knowledge, skills, and attributes (more historically called "KSA's") that are described in terms of specific behaviors, and are demonstrated by superior performers in those jobs or work roles. Attributes include: personal characteristics, traits, motives, values or ways of thinking that impact an individual's behavior.

Origin of Management including Competency Mapping:

Chanakya's Arthshastra, an ancient Indian script/ book on Political Science and Administration, written some 3000 years ago. Other names of Chanakya were Mr. Kautilya, and Mr. Vishnu Gupta. Constitutions of all the major countries have origin in this book. It could be Indian Constitution, Irish, Canadian, USA, Australian, etc. and even British unwritten constitutions have roots imbibed in this book. It is the towering book in which you find the basics and applications of Management Sciences, Chemistry, Physics, Military and War techniques, Basic Engineering and Technologies, Ethics, Legal and Judiciary and Fiduciary system, Values, Psychology, and Anthropology, Organization Behavior, Human Resource Management. In fact major basics of all Marketing Management, Human Resource Management, basics of Management Models, are been directly lifted with some modification from this book. Great efforts of Chanakya by all means; and one of the greatest contributions to the world. You may call Arthshastra as a Classical book once if you read, you

will find other subjects easy any time in your life.

If Geeta, Bible, Kuran, Gurugranthsahib, Adi Granth, Vedas, Vedanta are classical scripts in spirituality then Arthshastra is one of the classical book for above mentioned subjects. In fact all the classical scripts have everything put in gist to live normal life happily. It is said that once you master classical books everything becomes easier in later part of life and work.

Competence is a standardized requirement for an individual to properly perform a specific job. It encompasses a combination of knowledge, skills and behavior utilized to improve performance. More generally, competence is the state or quality of being adequately or well qualified, having the ability to perform a specific role.

For instance, management competency includes the traits of systems thinking and emotional intelligence, and skills in influence and negotiation. A person possesses a competence as long as the skills, abilities, and knowledge that constitute that competence are a part of them, enabling the person to perform effective action within a certain workplace environment. Therefore, one might not lose knowledge, a skill, or an ability, but still lose a competence if what is needed to do a job well changes.

The competencies have five characteristics, namely:

* Motives: Things a person consistently thinks about or wants that cause action, motives drive, direct and select behavior towards certain actions. Example achievement motivation people consistently set challenging goals for themselves, take responsibility for accomplishing them and use the feedback to do better

* Traits: Physical characteristics and consistent responses to situations. Good eyesight is physical traits of a pilot. Emotional Self Control and initiative are more complex consistent responses to situations.

* Self Concept: A person's attitude value or self image. A person's values are reactive or respondent motives that predict what a person would do in the short run. Example: A person who values being a leader would be more likely to exhibit leadership behavior.

* Knowledge (Information a person has in a specific work area) Example: An accountant's knowledge of various accounting procedures.

* Skill (is the ability to perform certain mental or physical tasks) Example: Mental competency includes analytical thinking. The ability to establish cause and affect relationship.

The four general competences are:

Meaning Competence: Identifying with the purpose of the organization or community and acting from the preferred future in accordance with the values of the organization or community.

Relation Competence: Creating and nurturing connections to the stakeholders of the primary tasks.

Learning Competence: Creating and looking for situations that make it possible to

experiment with the set of solutions that make it possible to solve the primary tasks and reflect on the experience.

Change Competence: Acting in new ways when it will promote the purpose of the organization or community and make the preferred future come to life.

Types of competencies

1. Organizational competencies — unique factors that make an organization competitive2. Job/Role competencies—things an individual must demonstrate to be effective in a job, role, function, task, or duty, an organizational level,or in the entire organization.3. Personal competencies—aspects of an individual that imply a level of skill, achievement, or output

Types of competencies

MANAGERIAL

Competencies   which are considered essential for staff with managerial or supervisory responsibility in any service or program area, including directors and senior posts.

Some managerial competencies could be more relevant for specific occupations, however they are applied horizontally across the Organization, i.e. analysis and decision-making, team leadership, change management, etc.

GENERIC

Competencies   which are considered essential for all staff, regardless of their function or level, i.e. communication, program execution, processing tools, linguistic, etc.

TECHNICAL/FUNCTIONAL

Specific competencies which are considered essential to perform any job in the Organization within a defined technical or functional area of work, i.e. environmental management, industrial process sectors, investment management, finance and administration, human resource management, etc.

Levels of Competency

1. Practical competency - An employee's demonstrated ability to perform a set of tasks.

2. Foundational competence - An employee's demonstrated understanding of what and why he / she is doing.

3. Reflexive competence (An employee's ability to integrate actions with the understanding of the action so that he / she learn from those actions and adapts to the changes as and when they are required.

4. Applied competence - An employee's demonstrated ability to perform a set of

tasks with understanding and reflexivity.

Application levels of a competency

ADVANCED

Demonstrates high level of understanding of the particular competency to perform fully and independently related tasks.

Frequently demonstrates application that indicates profound level of expertise. Can perform adviser or trainer roles. Work activities are carried out consistently with high quality standards.

PROFICIENT

Demonstrates a sound level of understanding of the particular competency to adequately perform related tasks, practically without guidance. Work activities are performed effectively within quality standards.

KNOWLEDGEABLE

Demonstrates a sufficient understanding of the particular competency to be used in the work place, but requires guidance Tasks or work activities are generally carried out under direction.

COMPETENCY MAPPING

Competency mapping is a process through which one assesses and determines one's strengths as an individual worker and in some cases, as part of an organization. It generally examines two areas: emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decision-making. Large organizations frequently employ some form of competency mapping to understand how to most effectively employ the competencies of strengths of workers. They may also use competency mapping to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work.

The steps involved in competency mapping with an end result of job evaluation include the following:

1) Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ). This can be provided for incumbents to complete, or you can conduct one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs.

2) Using the results of the job analysis, you are ready to develop a competency based job description. A sample of a competency based job description generated from the PIQ may be analyzed. This can be developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies.

3) With a competency based job description, you are on your way to begin mapping the competencies throughout your human resources processes. The competencies of the respective job description become your factors for assessment on the performance evaluation. Using competencies will help guide you to perform more objective evaluations based on displayed or not displayed behaviors.

4) Taking the competency mapping one step further, you can use the results of your evaluation to identify in what competencies individuals need additional development or training. This will help you focus your training needs on the goals of the position and company and help your employees develop toward the ultimate success of the organization.

Behavioral event interview

A behavioral interview is a structured interview that is used to collect information about past behavior. Because past performance is a predictor of future behavior, a behavioral interview attempts to uncover your past performance by asking open-ended questions. Each question helps the interviewer learn about your past performance in a key skill area that is critical to success in the position for which you are interviewing. The interview will be conducted face-to-face whenever possible.

Using the STAR Technique

In a behavioral interview, the interviewer will ask questions about your past experiences. A useful way to prepare for this style of questioning is to use the STAR technique. The STAR technique is a way to frame the answers to each question in an organized manner that will give the interviewer the most information about your past experience. As you prepare to answer each question, consider organizing your response by answering each of the following components of the STAR technique:

What was the S ituation in which you were involved?What was the Task you needed to accomplish?What Action(s) did you take?What Results did you achieve?

Repertory grid

The repertory grid is a technique for identifying the ways that a person construes his or her experience. It provides information from which inferences about personality can be made, but it is not a personality test in the conventional sense.

A grid consists of four parts.

1. A Topic: it is about some part of the person's experience

2. A set of Elements, which are examples or instances of the Topic. Any well-defined set of words, phrases, or even brief behavioral vignettes can be used as elements. For example, to see how I construe the purchase of a car, a list of vehicles within my price range could make an excellent set of elements

3. A set of Constructs. These are the basic terms that the client uses to make sense of the elements, and are always expressed as a contrast. Thus the meaning of 'Good'

depends on whether you intend to say 'Good versus Poor', as if you were construing a theatrical performance, or 'Good versus Evil', as if you were construing the moral or ontological status of some more fundamental experience.

4. A set of ratings of Elements on Constructs. Each element is positioned between the two extremes of the construct using a 5- or 7-point rating scale system; this is done repeatedly for all the constructs that apply; and thus its meaning to the client is captured, and statistical analysis varying from simple counting, to more complex multivariate analysis of meaning, is made possible.

Step 1

The individual or group begins with a repertory grid, pen or pencil, and five to eight blank cards.

Step 2

Then the elements are written across the top of the grid.

Step 3

After this, the subject(s) write numbers on one side of the cards which correspond with the elements at the top of the grid.

Step 4

The cards are turned face down, shuffled, and then three cards are drawn at random.

Step 5

The subject(s) mark on the grid which three elements were drawn with an "X".  They then decide:  "Out of the three elements chosen, which two seem to have something more in common with each other?"  These two elements are connected with a line.

Step 6

Always on the left side of the grid, the subject(s) will describe what aspect these two elements share.  On the right side, they will express what it is that makes the third element different from the other two.  (If this is too difficult, people are allowed to write something they believe to be the opposite of the left hand construct).

Step 7

Finally, the elements are rated to the constructs.  Each element is rated to the constructs on a scale of one to five, with the left construct as "1" and the right construct as "5".  For example, on a scale of 1 to 5, with "1" being most like a "lesson carefully designed for students needs" and five as "giving students second language activities just to kill the time", we see that the subject(s) rated the element, "students are happy" as more like the left construct, with a rating of "2", the element, "students are active" as like the right construct, with a rating of "5", "students retain L2" as like the left side with a rating of "1", and so on.

One the first row has been rated, the individual or group turn the three cards over, shuffle them, and begin the process all over again.  They may reshuffle in the case of drawing the same three card combination as before. 

Repertory grids were an invention of the late George Kelly, a mid-West American engineer turned psychologist/psychotherapist who wrote up his work in the '50s. They consist of a rectangular matrix of ratings of things called "elements" (usually placed in the columns) each rated on adjectival phrases or simple adjectives known as "constructs".

Critical incident technique

The CIT is a method for getting a subjective report while minimising interference from stereotypical reactions or received opinions. The user is asked to focus on one or more critical incidents which they experienced personally in the field of activity being analysed. A critical incident is defined as one which had an important effect on the final outcome. Critical incidents can only be recognised retrospectively.

CIT analysis uses a method known as Content Analysis in order to summarise the experiences of many users or many experiences of the same user.

The Critical Incident Technique (or CIT) is a set of procedures used for collecting direct observations of human behavior that have critical significance and meet methodically defined criteria. These observations are then kept track of as incidents, which are then used to solve practical problems and develop broad psychological principles. A critical incident can be described as one that makes a significant contribution - either positively or negatively - to an activity or phenomenon. Critical incidents can be gathered in various ways, but typically respondents are asked to tell a story about an experience they have had.

CIT is a flexible method that usually relies on five major areas. The first is determining and reviewing the incident, then fact-finding, which involves collecting the details of the incident from the participants. When all of the facts are collected, the next step is to identify the issues. Afterwards a decision can be made on how to resolve the issues based on various possible solutions. The final and most important aspect is the evaluation, which will determine if the solution that was selected will solve the root cause of the situation and will cause no further problems.

Advantages

Flexible method that can be used to improve multi-user systems. Data is collected from the respondent's perspective and in his or her own words.

Does not force the respondents into any given framework.

Identifies even rare events that might be missed by other methods which only focus on common and everyday events.

Useful when problems occur but the cause and severity are not known.

Inexpensive and provides rich information.

Emphasizes the features that will make a system particularly vulnerable and can bring major benefits (e.g. safety).

Can be applied using questionnaires or interviews.

Disadvantages

A first problem comes from the type of the reported incidents. The critical incident technique will rely on events being remembered by users and will also require the accurate and truthful reporting of them. Since critical incidents often rely on memory, incidents may be imprecise or may even go unreported.

The method has a built-in bias towards incidents that happened recently, since these are easier to recall.

It will emphasize only rare events; more common events will be missed.

Respondents may not be accustomed to or willing to take the time to tell (or write) a complete story when describing a critical incident.

COMPETENCY ASSESSMENT

Competency assessment involves the measurement of an individual's competencies. Measures include cognitive ability tests, biodata instruments, structured interviews, job knowledge tests, diagnostic and promotion tests, and measures of customer service, and social skills. With the advent of increased agency responsibility for staffing decisions, valid personnel selection assessments are more critical than ever. The Office of Personnel Management's research and development staff are experts in producing selection methods that can be tailored to specific agency needs.

Key Features

Selection methods cover the entire spectrum of job-relevant abilities, including reasoning and social skills, and are offered in a variety of formats:

o Multiple-choice tests, either computer-based or paper and pencil o Structured interviews o Biodata questionnaires o Job-knowledge tests o Social skills inventories o Executive assessment centers o Language-learning ability tests o Physical performance tests o Professional examinations for managers and executives

Complete documentation of development process and validity analysis Nationwide network of test administrators can effectively and efficiently administer

tests of OPM design

Why You May Want To Use These Services

Increased productivity Enhanced diversity of candidates

Assessment Center Exercises An Assessment Center can be defined as "a variety of testing techniques designed to allow candidates to demonstrate, under standardized conditions, the skills and abilities that are most essential for success in a given job"

(Coleman, 1987). The term "assessment center" is really a catch-all term that can consist of some or all of a variety of exercises. Assessment centers usually have some sort of in-basket exercise which contains contents similar to those which are found in the in-basket for the job which is being tested. Other possibilities include oral exercises, counseling simulations, problem analysis exercises, interview simulations, role play exercises, written report/analysis exercises, and leaderless group exercises (Coleman, 1987; Filer, 1979; Joiner, 1984). Assessment centers allow candidates to demonstrate more of their skills through a number of job relevant situations (Joiner, 1984).

360 DEGREE FEEDBACK

In human resources or industrial/organizational psychology, 360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment', is employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager.

The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which is sometimes called "360-degree review."

Benefits

Individuals get a broader perspective of how they are perceived by others than previously possible.

Increased awareness of and relevance of competencies.

Increased awareness by senior management that they too have development needs.

More reliable feedback to senior managers about their performance.

Gaining acceptance of the principle of multiple stakeholders as a measure of performance.

Encouraging more open feedback — new insights.

Reinforcing the desired competencies of the business.

Provided a clearer picture to senior management of individual's real worth (although there tended to be some 'halo' effect syndromes).

Clarified to employees critical performance aspects.

Opens up feedback and gives people a more rounded view of performance than they had previously.

Identifying key development areas for the individual, a department and the organization as a whole.

Identifying strengths that can be used to the best advantage of the business.

A rounded view of the individual's/ team's/ organization's performance and what the strengths and weaknesses are.

Raised the self-awareness of people managers of how they personally impact upon others — positively and negatively.

Supporting a climate of continuous improvement.

Starting to improve the climate/ morale, as measured through the survey.

Focused agenda for development. Forced line managers to discuss development issues.

Perception of feedback as more valid and objective, leading to acceptance of results and actions required.

Gaps are identified in one's self-perception versus the perception of the manager, peer or direct reports.

Customizing the questions to one's organizational competencies.