Chapter 1 Introduction 1.

1 Introduction Bank is very old institution that is contributing toward the development of any economy and is treated as an important service industry in the modern world. Economic history shows that development has started everywhere with the banking system and its contribution towards financial development of a country is the highest in the initial stage. Modern banks play an important part in promoting economic development of a country. Bank provides necessary funds for executing various programs in the process of economic development .they collect savings from large masses of people scattered throughout the country, which in the absence of banks would have remained ideal and unproductive, these scattered amounts are collected, pooled together and made available to commerce and industry for meeting the financial requirements. Bank plays a vital role in the economy by providing means of payment and mobilizing resources. Bank is the most important financial institution in the economic development of a country depends on the development of banking sector. oday!s modern banks are not only providing traditional banking but also expanding the many financials services. "n today!s world the life of the people directly are within the arena of banking whether conventional or "slamic banking is not a newer concept in Bangladesh as it has started its operation since #$%&, very few people are aware about its operation. But things are changing. "slamic banking is also getting popularity in the country. "nternship program essential for every student, especially for the students of Business 'dministration, which helps them to know the real life situation, for this reason a student takes the internship program at the last stage of the bachelor!s degree, to launch a career with some practical experience. 'gainst this backdrop , " have competed my three months internship in the Exim Bank (td., )ew Eskaston Branch ,*haka , which has helped me a lot to understand the real life situation life situation of banking business. 1.2 Objective of the Report he main ob+ective of this report is to learn about ,uman -esources Management practices and policies of E."M Bank (td. /pecial ob+ectives are0 o know ,uman -esources 1lanning practices of the bank. o learn about recruiting and selecting procedure of the bank.

o identify training and development methods applied in the bank. o know performance management practices and compensation practices in the bank. 1.3 Methodology "n order to conduct such a study the report follows some specific methods. he report is descriptive in nature. *ata were collected from both primary and secondary sources. 1rimary data were collected from the bank through specific questionnaire. /econdary data were collected from various external sources like texts, internet and annual report of the bank. 1.5 Scope of the Study his report has been prepared through extensive discussion with bank employees and with the clients. 1rospectus provided by the bank also helps to prepare the report. 't the time of preparing the report, " had a great opportunity to have an in depth knowledge of all the banking activities practiced by the Exim Bank (imited. 1. !i"itation# of the Study he officers are very co2operative but they are too busy to give me time to get knowledge about practical activities. Moreover they have to deal in a very competitive environment based on money related activities. " have to prepare this report alone. Every task has some limitations. " faced some usual constraints during the course of my internship. hese are as follows0 /hort of time0 " had to complete this report within a shorter period of time. /o the time constraint of the study hindering the course of vast area and time for preparing a report within the mentioned period is really difficult. Busy working environment0 he officials had some times been unable to provide information because of their huge routine work. (ack of sufficient well informed officials0 Many officials of the branch are not well informed about different systems of Exim bank. hey know but less. " had to face much difficulty to collect this information. "nsufficient data0 /ome desired information could not be collected due to confidentially of business

Chapter $2 Overvie% of &'IM (an) !i"ited 2.1 (ac)ground of &*i" (an) (anglade#h !td. Export "mport Bank of Bangladesh (imited was incorporated in Bangladesh on 3une 4 #$$$ as a banking company under the companies 'ct #$$5. he Bank converted its banking operation into "slamic /hariah from traditional banking operation on #st 3uly 4665 after obtaining approval from Bangladesh bank. Exim bank went for public for issuing shares in the year 4665. hough this bank started its business in #$$$ but its growth rate was 56.7% 8 in 4665 and till 4669 it has grown over 466 8 from 4665. services from them each day. he bank has increased its branches to 56 at present and a huge number of customers are getting hat indicated that /hariah banking has an effect on the growth of the bank. :ithin an operative period as short as six years, the bank has arrived at a strong financial and business position by expanding its market share compared to its contemporaries and to some extent to the 4nd even #st generation banks of private sector. "n addition, the Bank has also made a significant contribution to the national economy under the prudent leadership and untiring support of the member of the Board of *irectors, who are leading business personalities and reputed industrialists of the country. 2.2 !i#t of Spon#or# ; Md. )arzul "slam Mazumder ; Md. )azrul "slam /wapan ; Mohammad 'bdullah ; Md 'ltaf ,ossain ; )asreen "slam

; Md. Mazakat ,arun ; Md. <ahim =aman ; 1athan 'sma Begum ; Eng. 'minur -ahman >han ; =ubayer >abir ; -izwana >. -iza ; Md. ,abibullah ; Md. )ur ,ussain ,asina ; 'khter 'n+an >umar ; /aha '.>.M)urul<azal ; Bulbul ; Md. 'bdul Mannan ; -abeya >hatoon . ; Mahmuda Begum ; )asima 'khter ; /abira /ultana ; Mamta+ Begum ; Md. /haiful 'lam ; ,amida -ahman ; Md.<aiz?llah ; Meer 3oynal 'bedin )ahida 'kter 2.3 (oard of +irector# )ame *esignation Md. <aiz ?llaha '.>.M. )urul <azal Bulbul Md. ,abibullah *irectors Md. )urul 'min Mohammad /haidullah Md. @olam mahbub Aompany /ecretary 4.5 Bision of he Bank the gist of our vision is C ogether towards omorrow!. Export "mport Bank of Bangladesh (imited, as the name implies, is not a type of Bank in some cmuitries on the globe, but is the first of its kind in Bangladesh. "t believes in

togetherness with its customers, in its march on the road to growth and progress with services. o achieve the desired goal, there will be pursuit of excellence at all stages wok a climate of continuous improvement, because, in Exim Bank, we believe, the firm of excellence is never ending. Bank!s strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive environments. "ts personalized quality services to the customers with the trend tf constant improvement will be cornerstone to achieve our Dperational success. 4.E Mission of the Bank0 he bank chalked out the following corporate ob+ectives in order to ensure smooth achievement of its goals0 ; o be the most caring and customer friendly and service oriented bank, ; o create a technology based most efficient banking environment for its Austomers. ; o ensure ethics and transparency in all level. ; o ensure sustainable growth and establish full value of the honorable shareholders, and ; 'bove all to add effective contribution to the national economy. 2. Organi,ation Structurehe total Management structure of E."M bank is given below. 2.. /roduct 0 Service# financeF "nvestmentG ; Aorporate <inance ; "ndustrial <inance H (ease <inance ; ,ire 1urchase <inance ; Aommercial "nvestment ; 1ro+ect <inance ; /yndicate "nvestment ; -etail "nvestment ; Mortgage "nvesrment ; (oan against /hare and /ecurities ExchangeG )on -esident <oreign Aurrency *eposit 'ccountI)<A*J <oreign Aurrency *eposit 'ccount

/avings /cheme0 Monthly /avings /chemeIMoney @rowerJ Monthly "ncome /chemeI/teady MoneyJ *ouble the deposit in 7 years I/uper /avingsJ #6 years deposit2more than triple IMultiples /avingsJ Education /avings /cheme Bank emphasizes on non2fund business and fee based income. Bid bondF bid security pew be issued at customer!s request. Esim Bank is posed to extend (FA facilities to its importers F exporters through lishment of correspondent relations and )ostro 'ccounts with leading banks all fcier the world. Moreover, Aonsumers can deposit their elephone bill of @rameen -one in all the branches except Moti+heel and the consumers of 1alli Buddut somity rf @azipur can deposit their electricity bill to @azipur branch. E2A'/,F ' M /E-B"AE he bank is currently providing Aredit Aard /ervice IMasterAardJ to the privileged mers of the bank in collaboration of 1rime Bank. <loating B"/' card for both Kit and Aredit card service is under process. 2.1 (an) Operational 2rea Export and "mport rade ,andling and <inancing 's a commercial Bank, bank!s do all traditional Banking business including the wide noge of savings and credit scheme products, retail banking and ancillary services ;Mb the support of modern technology and professional Excellency .But our main feus is, for obvious reason, on export and import trade 4.$ handling and the development 'chievements ?f ecirepreneurship and patronization of private sectors.. is a great pleasure that by the grace of 'lmighty 'llah, we have migrated at a time ;' the branches from its conventional banking operation into /hariah based "slamic poking operation without any trouble. (ot of uncertainties and adversities were there this migration process. he officers and executives of our bank motivated the customers by counseling and persuasion in light with the spirit of "slam especially for the non2Muslim customers. Dur " division has done the excellent +pb of converting and fitting the conventional business processes into the processes based A* /hariah. "t has been made possible by following a systematic procedure of migration under the leadership of honorable Managing *irector.

4.#6 #. 4. &. 5. E. 7. 9. %. $. #6. ##. #4. #&. #5. #E. #7. #9. #%. #$. Mawna Branch 46. 4#. 44. 4&. 45. 4E. 47. 49. 4%. 4$. &6. &#. &4. &&. /at ,ead

list Dffice /aver Moti+heel >arwan 1anthapath @ulshan @azipur "mamgan+ )awabpur )arayangon+ /himrail -a+uk )ew ?ttara Mirpur Mosh+id Elephant )aria Malibagh 'shulia 'shugon+ Bashundhara >ustia 'grabad >hatunngon+ 3ublee /onai (aksham A*' Ahowmuhani Aomilla Modaffargon+

of Aorporate

Branch Branch Branch branch

Bazar

Branch Branch Branch Branch Branch Branch Branch Branch

'venue Eskaton

Branch Branch Branch Branch -oad Branch Branch Branch Branch Branch Branch

-oad

-oad

Branch Branch Branch Branch Branch

Muri 'venue

Branch Branch Branch Branch Branch Branch

&5. &E. &7. &9. &%. &$. 56. 54. 5&. 55. -angpur Branch 4.## Aapital 3essore Moulvi

Ahhagalnaiya 1ahartoli /ylhet Bazar @olapgon+ <enchugon+ Branch Bogra -a+shahi and 5 l.>haulna

Branch Branch Branch Branch Branch Branch Branch Branch Branch -eserves

he Bank started its voyage with an authorized capital of > #,666 million whole it!s initial paid up capital was >.44E.66 subscribed by the sponsors in the year #$$$. he Aapital and -eserve of the Bank as on &#st *ecember 466E stood at including paid up capital of >.%9%./E million. unclassified investment which in amounted to >.47&.#% million. 4.#4 profit of this Bank as of 4665 to 4669 <rom the figure as well as from the profit and loss account data we can see that it has increased day by day. "n 5665 there was a value of &%9,##5,$$$ and it percentage rate was #E8where in 466E was E#$,&65,E&& and percentage was 4#8. "n 4667 there value was 79#,666,596 and percentage was 498 and in 4669 there value was $&4,E#&,$7E and percentage was &98. <rom this information we can say that the profit of this bank is increasing day by day for there efficient worker as well as for there better management body. 4.#& otal 'ssets he total asset of the Exim bank has differed from one year to another year. he figure shows the 466E there was a small position from the 4669. "t has increased day by day and it is increasing. hat means we can say that the bank total asset in increasing for there better service well as there better performance. 4.#5 otal (iabilities and /hareholders Equity 466E there total liabilities and shareholders equity was 49 8 where 4667 is && 8 and in BDD it increased at the percent of 56 8. <orm this information we can say that it has sufficient to do this and if it occurs more it will be hampered. >. 4#9$.%# million he Bank also made provision m

Chapter $3 3RM$ 2n Overvie% 3.1 Meaning of 3RMManagement and human resource management are one and the same. hey should never be separated. Management is personnel administration. Management has the three +obs, two of which are directly related to personnel managing, a business, managing managers and managing workers and work. he word management has three syllables Manage2Men2 . "f is taken for tact, then etymologically management means how to manage men with tact. Management is the process of efficiently getting things done with and through other people. ,-M deals with the design of formal systems in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals. here are many definitions about human resource management I,-MJ. Dne of the well known definitions offered by Michael 3ucious I#$%5J. ,e defined human resources management or personnel management Las the field of management involves planning, organizing, directing and controlling the function of procuring, developing, maintaining and motivating a labor force.M "t is the process of acquiring, retaining, terminating, developing and properly using the human resources in an organization. employees. he acquisition function begins with planning. "t includes the recruitment, selection and socialization of hough ,- planning, managers attempt to anticipate forces that will influence the future supply of demand for employees. he development function includes employee training, management, development and career development. 's +obs evolve and change, ongoing retraining is necessary to accommodate technological changes. Encouraging development of all employees is

necessary to prepare organizations for future challenges. Aareer planning identifies paths and activities for individual employees as they develop within the organization. he motivation function begins with the recognition that individuals are unique and the motivational techniques I+ob satisfaction, employee performance appraisal and compensationJ must reflect the needs of each individual. 'ssessing how employees perform their +obs is the focus of performance appraisal. Aompensation rewards people for performing organizational work through pay, incentives and benefits. he maintenance function is concerned with providing those working conditions that employees are necessary in order to maintain their commitment to the organization. he relationship between managers and employees must be handled effectively if both the employees and the organization are to prosper together. ,-M deals with the design of formal system in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals. here is a growing recognition that effective use of people in the organization can provide a competitive advantage. "t pervades the organization. Every person in an organization is involved with personnel decisions. he responsibility for human resource management activities rests with each manager. "f managers throughout the organization do not accept their responsibility, then human resources activities may be done only partially or not at all. "t is concerned with managing people at work. "t covers all types of personnel. "t is a continuous function. "t draws on a number of related disciplines, such as industrial psychology, /ociology, /ocial 1sychology, 'nthropology and Economics. he function of ,-M is advisory in nature. "n management terminology, it is a staff function. he personnel manager advises the operating departments on matters relating to personnel. ,e does not issue orders to them but gives them advice raditionally,,-M is the process of acquiring,training,appraising,and compensating employees and attending to their labor relation,health and safety,and fairness concerns but in the changing context,,-M is seen as a set of techniques that claimed to embrace and promote new approaches to management of people and work organization to enhanee employee commitment and flexibility as well as their willingness to respond rapidly with the changing market conditions for providing competitive advantage to the organizations. his approach is based on four key elements. #.Beliefs and assumption0 a. hat this is the human resources,whice gives competitive edge.

10

b. hat the aim should be not mere compliance with rules but employee commitment . c. hat therefore, employees should ,for example,be very carefully selected and developed. 4./trategic Nualities0 a.Because of the above factor,,- decision are of strategic importantance. b. op management involvement is necessary. c.,- policy should be integrated in to the business strategy,stemming from it and even contributingto it. &.Aritical role of the managers0 a.Because ,- practice is critical to core activities of the business,it is too important to be left to personnel specialist alone. b.(ine managers are Ior need to be Jclosely involved as both deliverers and drivers of the ,- policies. c.much greater attention is paid to the management of managers themselves. 5.>ey (evers0 a.Managing culture is more important than managing proceures and systems. b."ntegrated action on selection ,communication,training,reward and development. c.-estructuring and +ob redesign to allow devoleded responsibility and empowerment &.4 ,istory of ,-M0 he utilization of people, at least in a rudimentary form, can be traced to ancient times. Efforts to best use talents, even through informal in nature, were undertaken whenever people came together in a community. he change has been that during the course of the least century efforts to best manage human resources have become more formal and specialized. he history of ,-M can be characterized in two ways. <irst, as moving through four broad phases0 the craft system, scientific management, the human relations approach, and the current organizational science2human resource approach. hrough the twentieth century time line illustrated in able #.#. he Araft /ystem0 <rom the earliest times in Egypt and Babylon, training in craft skills was organized to maintain an adequate supply of craft workers. By the thirteenth century, craft training had become popular in :estern Europe. Araft guilds supervised quality and methods of production and regulated conditions of employment for each occupation. he master crafts worker controlled the craft guilds, and the recruit entered after a period of training as an apprentice. he craft system was best suited to domestic industry, which the

11

master operated on his own premises, with his as assistants residing and working in the same house. /cientific twentieth centuries and led to the deterioration of the craft guilds. Management0 he development of he "ndustrial -evolution and mass production emerged in the nineteenth and early mass production transformed the organization of work in two important ways. <irst, tasks were subdivided into very simple parts that could be performed by unskilled workers. /econd, manufacturing grew to such an extent that a large hierarchy of supervisors and managers became necessary. 'long with mass production came the assembly line and a scientific approach to an analysis of work in terms of its constituent parts. he basis of scientific management is that there is one best way to do a +ob. he best way will be the most efficient and therefore the fastest and least expenOsive. he founder of this new field of scientific management was an 'merican meOchanical engineer, <rederick L:. proponents aylor I#%E72#$#EJ. of scientific wo of aylor!s contempoOraries, <rank @ilbreth or inOdustrial engineering. I#%7%2#$45J and his spouse ?llian Moeller @ilbreth I#%9%2#$94J, +oined in becoming the management "n the decade after #$#6, the principles of scientific management were applied on a wholesale basis in the ?nited /tates. aylor and his disciples assumed that workers wanted to be used efficiently and were motivated by money. his philosoOphy proved to be incorrect because it ignored feelings2and other motives. :orkers were left dissatisfied with their +obs. ?nion opposition grew as union organizers condemned aylorism for depriving workers of a voice in the conditions and func2tions of their wink. Dne result was the emergence of welfare secretaries as organizational employee to oversee programs for the welfare of employees. beginning of the hese pro2grant included recreational facilities, employee he welfare secretary position was the Inow human resourceJ function. personnel assistance programs, and medical programs. professional

's antiquated as scientific management seems now, some would argue that many of the basic principles still apply today.47 <or example, the many special in2centive systems organizations use to motivate employees and reward performance are adapted from aylor!s ideas. he ideas of scientific management are adaptable, and its basic principles continue to have relevance after almost #66 years. ,uman -elations0 he first important discovery about the social context of mass production occurred in tin2 famous experiment undertaken by ?./. social scientists Elton Mayo I#%%62#$56J and

12

<ritz -oethlisberger I#%$%2#$95J between #$45 and #$&4 at :estern Electric!s ,awthorne plant in Ahicago. Mayo and his colleagues sought to study the effects of changes in illumination on productivity. he investigators chose two groups of employees working under similar conditions. he level of illuOmination was varied for the test group but kept constant for the control group. o Mayo!s surprise, the output of both groups rose. Even when the researchers told the workers in one group that the light was going to be changed but then did not change it, the workers expressed satisfaction, and productivity continued to "ncrease. Mayo saw that the significant variable was not physical but psychologiOcal, he reason for the increase in productivity was the workers! attitudes toward their +obs and :estern Electric. Because their cooperation had been requested, the workers now felt themselves part of an important group whose help and advice were being sought by the company.49 he discovery of the L,awthorne effectM led to further research on the social factors associated with work, -esults of these studies led to the human relations movement, with its emphasis on the fact that employees need to be understood in order to be satisfied and productive. ,owever, the idea that good human relations in and of themselves will increase productivity failed to be consistently supported, and many of the movement!s ideas Drganizational were abandoned. /cience0

<ollowing realization of the limitations of the human relations approach, academic researchers from various behavioral disciplines, such as psychology, political sciOence, economics, and sociology, began studying organizations. he organizaOtional science approach focuses more on the total organization and less on +ust the individual. ,-M, as we currently know it, grew out of the organizational sciOence trend and combines learning from the previous movements with current reOsearch in the behavioral sciences. Evolution ime period ,of <ocus ,,'ctivity Management Example Event

Before #%$6 #$662#$#6 "ndustrial technologies Employee well2being *isciplinary systems ,ealth and safety programs )ational cash register IncrJforms first personnel department to handel employee issues #$46s and ; Employee counselling and ask design, efficiency, and impact of work groups on individual workers ; motion testing period of scientific ime studies management

13

#$&6s ; ; legistation0 )orris 1assage of

; ma+or

?nion labor 'nti2union laws ;

of Aommunication

workplace programs campaigns

; 1ersonnel becomes staff support to operational line units Ma+or labor relations Pla@uardia Employee benefits and compensation ; :age 'ct increases ad+ustments with Employee functions ; raining and LescalatorMclause. relations development

)ational labor relation 'ctIwagnet 'ctJ #$56s ; sing #$E6s ; /pecialized first ; personnel Aost2of2living contract

; 1ension, health, and other benefits plans @eneral Motors 'nd the ?nited 'uto :orkers

; /eparate divisions within personnel estabnlishedG recruitment, labor relations, training, benefits etc. he ,awthorne studies from the human relation movement find widespread applicability. #$76s Employee participation ; Employee rights issues now regulated in areas of discrimination, equal opportunity, safety and health, and various benefit reforms 1eter *rucker!s encyciopedic the practice of Management I#$E5J finds widespread applicability. #$96s @overnment intervention Employee rights issues now regulated in areas of discrimination, equal opportunity, safety and health @riggs v.*uke power,the first u.s /upreme #$%6s employment #$$6s ; rate. 4666 and beyond ; /trategic ,- planning Exemplified by *avid ?irich!s book ,uman -esource Ahampions, which examines the role of ,-M in the twenty2first century. &.5 are changing as the <unction time goes on. he of main ,-M functions ,-M include0 ,- managers are performing a variety of functions. he functional areas of ,- managers ; ,uman resource planning is an important activity that involves estimating the size and ; Aourt ; practices Ahanging to demographics employment Employee :estern of work discrimination case. recognition companies. force

; *isplacement :illiam Duchi,s

heory = examines the applicability of +apanse

echnology 'bout 968 of married women are employed,more than double the #$76

14

makeup of the future work force. "t is a process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time. Aapable of effectively and efficiently completing those tasks that will aid the organization in achieving its overall ob+ectives. 1lanning of human resources is the life2blood of the firm. :ithout the right people in the right place at the right time, the firm could go out of business. -ecruitment is the process of finding and attracting qualified or suitable applicants to fill vacancies. -ecruiting is important because the best2 qualified applicants must be found to fill vacancies. he methods and procedures used to acquire an understanding about +obs are called +ob analysis. his is discussed next. here are mainly two sources of recruitment0 internal and external. 1romotion from within an organization is called internal source and recruiting new people from outside the organization is known as external source. 3ob analysis is the process of determining the tasks that make up the +ob ands the knowledge and skills and abilities an employee needs to successfully accomplish the +ob. <rom +ob analysis, +ob description and +ob specification can be prepared. 3ob description is a written statement of what the +obholder does how it is done and why it is done. 3ob specifications goal of selection. hiring. 1lacement is the assignment or reassignment of duties to employee. "t may take different forms such as promotion, transfer, demotion, and termination. Drientation is a process of getting new employees acquainted with the organization, its culture, rules and regulation, ob+ectives and supervisors and other employees. "t is the act of introducing new employees to organization and their work units. "t is important because it helps new employee to adapt with new situation. raining is a continual process of helping employees to perform at a high level. "t is a process of acquiring new skills to do +ob properly. raining changes and modifies employee attitudes and behaviors that will improve his ability to perform on the +ob. o be effective, a training program must accomplish a number of ob+ectives. <irst, it must be based on both organizational and individual needs. /econd, the ob+ectives of training should spell out what problems will be solved. hird, all training should be based on sound theories of learning. <inally, a training program must be evaluated to determine state the qualifications necessary for a +ob. /election is a process of hiring suitable people for +ob. -ight man for right +ob is the main he selection process involves many steps such as preliminary reception of application, interviewing, test, medical test, references and final decision of

15

whether

it

is

working.

3ob evaluation is a process of measuring and determining the value of each +ob in relation to all +obs within the organization. 3obs are ranked in order to arrive at each +ob!s appropriate worth. "t is the basis of designing a well2 balanced compensation program. he widely used methods of +ob evaluation are ranking method, classification method, point rating method, and factor comparison method. 1erformance appraisal is a process in an organization whereby each employee is evaluated to determine how he or she is performing. Employee may be appraised against absolute standards, relative standards, and ob+ective. he appraisal process consists of six steps0 establish performance standards, communicate performance expectations to employees, measure actual performance, compare actual performance with standards, discuss the appraisal with the employee, if necessary and initiate corrective action. Aompensation is the reward or price for labor. he goal of compensation administration are to design the lowest2cost pay structure that will attract, motivate and retain competent employees, and that also will be perceived as fair by these employees. *iscipline refers to a condition in the organization when employees conduct themselves in accordance with the organization!s rules and standard s of acceptable behavior. <or the most part, employees discipline themselves. But not all employees will accept the responsibility of self2discipline. /ome are problem employees. hese employees require some degree of extrinsic disciplinary action. his extrinsic is labeled punishment. he most frequent discipline problems can be classified as related to attendance, on2the2+ob behavior, dishonesty, and outside criminal activities. *isciplinary actions available to the manager include oral warning, written warning, suspension, demotion, pay cut, and dismissal. rade union is an organization of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining. he goals of unions include "nfluencing Establish "nfluencing Dbtaining political a the power in the wage security the and system administration state and effort for of over the bargain, members, rules, economy.

Aollective bargaining is negotiation, administration and interpretation of a written agreement between two partiesG at least one of, which represents a group that is acting collectively, that, covers a specific period of time.

16

3.5

I"portance

of

3RM0

:ith the increase in the size and complexity of business organizations, the most important, factor in business. Business needs people as owners, employees, and consumers. Drganizations need people to make them operate. Business may be operated differently and the ob+ectives of business may differ, but the universal element in all business activities is people. 'n organization is nothing without human resources. 'ny human organization a factory, a hospital or and association consists of people working together. 'ccording to economists, the factors of production are land, labor, capital and entrepreneurship. Df all the resources, the most important one is human resource because human being plays a dual role2 as resource, as well as a motive force for all other resources by manipulating them by way of developing, utilizing, commanding and controlling. "t is the most important of all other resources. his is because manpower is that resource through which management wants to control and direct all other resources like machines, materials, money and others. 'n organization is nothing without people. "t is true that capital technology and human force are the important elements for production. "n fact, productivity is the function of a set of interrelated factors Ie.g., political, social, economic, educational and culturalJ. Experts on productivity improvement emphasize more on people factor for enhancing productivity. hey are of the view that relatively human resource is the most important of all the factors of production. -esources other than human being could produce nothing. 1hysical resources by themselves cannot improve efficiency or contribute to an increased rate of return on investment. "t is through the combined and concerted efforts of people that monetary or material resources are harnessed to achieve organizational goals. :hy is human resource superior to other elements of productionQ Aapital can be borrowed and technology can be imported, but people cannot be bought. 'll the factors of production other than the workforce skills can be duplicated anywhere in the world. "t is all fungible capital, technology, raw materials, information all except for one thing the most critical part, the one element that is unique about a nation, its workforce I@riffin, #$$5J. <red (utherans I4666J an organizational Behavior, rightly argues that Lit is not technology, which separates the /aturn plant of @M from other manufacturing facilities. -ather the /aturn plant represents a profound change in the way people are managed.M 1roductivity is basically people2based. "t is for this reason the developing countries in spite of acquiring modern technologies could not achieve higher level of productivity. he rapidity of technology transfer, access to world wide capitaR markets and global

17

competition reduce the traditional advantages of superior technology and isolated markets, echnology becomes inactive without work forces. "t is man who works behind machine. Even in a highly automated plant, people are nevertheless required to co2 ordinate, and control the plant!s operation :orkers must use them effectively. hey must be motivated to provide the best quality and customer service possible. /akurai I#$%$J, an adviser of the 3apan 1roductivity Aenter has rightly pointed out that Limprovement of productivity through the introduction of new technology depends, by and large, on how people in the organization accepts the change. o obtain desired result from the hat is, introduction of change in technology, the change must be acceptable to themM. acceptance of change will lie with the behavioral level of the workforce. )eedless to say, machine increases the muscle power of man. Man without the machine is also less productive. hey are inseparable. (abor and technology combined generate the outputs that are priced and sold to customers. 's Morita, the founder and the author of LMade in 3apanM remarks Lassets make things possible but people make things happen.M Drganizations depend on people to vro change occurs without efficient human beings. "mproved productivity through people is ultimately the fountainhead of all human progress. "n the ultimate analysis, it is the human factor, which will determine the final productivity of enterorise. 1eople supply the talents, skills, knowledge and experience to achieve the organizations ob+ectives. (et us now explain some inherent qualities that a human S 1racticeF being is 'pplication in endowed the with. bank0

his internship report information collected form /,', M* 'B*?( B'-". he /enior vice president of the exim bank. he organization name where " completed my internship. E.1D- "M1D- B')> ("M" E*. "t was established #$$$ in Bangladesh. he ownership pattern of the organization is Aompany. he size of the organization is large. his organization ,uman resources *epartment looks the ,r function. "nformed by particular department to provide ,r function /uch as P recruitment,/election,"nduction,training,and development,performance

appraisal,Aompensation,training and development,employee maintenance. :ithout ,r function the ,r *epartment are performed to help other department as required by Aompany needs and according to the order of Managing *irector.

18

he ,- Manager report to the Managing *irector. "n this organization line 'uthority have in taking decision relating to personnel matters. he total number of Employees in this organization. 1ie chart he /ize of the ,r department. 1ie chart ,ere we mention the hr department personnel by educational qualification. 1ie chart ,r able chart ,ere we mention the following areas in our organization has human resources policies. his organization maintain written human resource policies. Chapter &"ploy"ent of /er#onnel 5.#.# ; 1laning Meaning is the most of important ,uman and primary -esource function of 1lanning0 management. ob+ectives. 1lanning 1lanning 1lanning of must human resources is be is a realistic ma+or looking and managerial ahead. workable. responsibility. $4 department personnel by work experience.

; "t is a process of selecting the organizational ob+ectives and taking action to achieve those ; ; ;

; "t is important because human resources provide a firm the competitive advantage. ; ,uman resource is a primary resource without which other resources cannot put into use. ; "n the age of competition, firms are focusing their attention on employee knowledge and skill. ; Dbviously, human resources are going to occupy the central stage of human activities, especially have been in set up the in field most of of the industry important and business business. organizations. ; "n view of its importance in the organizational effectiveness, separate ,-1 departments ; Aertainly, many organizations have voiced the idea that their human resources differentiated them from their competitors. he significance of human resources as a core competency was confirmed in a study of 4$& ?./. firms. he study found that ,management effectiveness positively affected organizational productivity, financial

19

performance ;

and

stock

value

I,uselid

#$$9J.

o achieve any goals, ,r requirement needs to be assessed, located and hamessed.

; ,-1 is not mere assessment of the number of human resources requried. ; 'n organization has to categorize ,- as per their knowledge and skills and also ensure their amenities. ?nder staffing also balanced affect a production, morale and allocation. productivity. ; "mproper ,-1 may lead to overstaffing increasing direct cost, cost of training, ; 'n organization does not own person as it does capital and physical assetsG this resource is seldom given proper attention. Many managers gave failed because they have taken their human resources for granted. "t is one of the most critical management undertakings position needed ; ; right number "t is to to and a depreciate popular definitions of kinds its of desired meet of supply as ,-1 people and time are this manpower those at the demand goes given below right decade. position. activities. time. ; ,-1 is a process by which an organization can move from its current manpower ; "t, then, translates the organization!s ob+ectives and plans into the number of people hrough planning management makes a balance between demand for and supply of calculation. on. 0

; Manpower is an asset, it is an asset which appreciates2which grows over time. Machines /ome

; -obbins I#$$%J defines ,-1 as Lthe process by which an organization ensures that it has the right number and kinds of people at the right places, at the right time who are capable of performing their assigned tasks effectively and efficiently. ; "n the worlds of Aoleman Bruce I#$$9J, ,-1 is the process of determining manpower requirements and the means of meeting those requirements in order to carry out the integrated ; ; ; ; ; ; Establishing "dentifying "dentifying "dentifying Ensuring the the plan and deficiency of recognizing deficiency in terms of the effective sources in of the the future terms quality right available utilization of work type +ob of and of organization. requirements. quantity. specification. man. manpower. force. ; 'ccording to the above definitions, ,-1 consists of the following elements.

*eveloping

20

; 4.1.2

'

manpower

plan 5ob

must

be

set 2naly#i#

of

two

plans. -

; ' manpower demand plan and a manpower supply plan. Dver the past fifty years, an enormous number of methodologies have been developed for use in measuring and understanding the nature of +obs. 1art of the discipline of +ob analysis of focuses on these traditional methods. :ithin this traditional approach, the goal of research and practice has been to identify better methods and measurement procedures to desirable the content of +obs. "n the traditional view, there is a straightforward assumption that +obs exist and can be measured. "n contrast to the traditional view are the +ob extinction proponents, who argue that +obs no longer exist in modern organizations due to the dynamic nature of work in rapidly changing business environments. he +ob extinction view argues that much to what we now know as +ob analysis is no longer meaningful and must be replaced with drastically different means for understanding what employees do in organizations. Dn day of appreciating these two different views of +ob analysis is to compare how the two perspectives define La +ob.M raditionally, a +ob has been defined using four concepts that have a hierarchical relationship to one another. hus, a +ob is comprised of several similar positions. Each position is made up of a set duties, which are comprised of several distinct tasks. ' definition for each of these four concepts is given below 0 ; ' task is La meaningful unit of work activity generally performed on the +ob by one worker within some limited time period. "t is a discrete unit of activity and represents a composite performed organization. Each of methods, by person in an procedures, an organization has a and techniques. individual. position. ; ' study is a loosely defined area of work that contains several distinct tasks that are ; ' position is the set of tasks and duties performed by a single individual in an ; ' +ob is La group of positions that are identical with respect to their ma+or or significant tasks and sufficiently alike to +ustify their being covered by a single analysis. ' +ob analysis is a systematic exploration of the activities within a +ob. "t is a technical procedure used to define the duties, responsibilities and accountabilities of a +ob. his analysis Linvolves the identification and description of what is happening on the +ob accurately and precisely identifying the required tasks, the knowledge, and the skills necessary for performing them, and the conditions under which they must be performed.

21

5.#.&

3ob

*escription

and

3ob

/pecifications0

' +ob description is a written statement of what the +ob holder does how it is done, under what conditions it is done, and why it is done. "t should accurately portray +ob content, environment, and conditions of emOployment. ' common format for a +ob description includes the +ob title, the duties to be performed the distinguishing characteristics of the +ob, environmental conditions, and the authority and responsibilities of the +obholder. 'n example of +ob description for a Benefits Manager is provided in Exhibit #. :hen we discuss employee recruitment, selection, and performance apOpraisal, we will find that the +ob description acts as an important resource for0 I#J describing the +ob Ieither verbally by recruiters and interviewers or in written advertisementsJ to potential candidatesG I4J guiding newly hired employees in what they are specifically expected to doG and I&J providing a point of comparison in appraising whether the actual activities of a +ob incumbent align with the stated duties. <urthermore, under the 'mericans with *isabilities 'ct, +ob deOscriptions have taken on an added emphasis in identifying essential Exhibit0# 3ob -eports /upervises0staff Environmental <unction0Manages *uties Employee and itle o0 Benefits of benefits Manager three condition0 program for Dccupational resources 3ob *ate code0 no0 0 )one organization. -esponsibilities0 *irector,,uman +ob functions.

plans and directs implementation and administration of benefits programs designed to insure employees against loss of income due to illness.in+ury layoff.or retirement. *irect preparation and distribution of written and verbal information to inform employees of benefits programs,such as insurance and pension plans,paid time off,bonus pay,and special organization companies,to ,to determine employer establish programs sponsored competitive best meeting benefits needs of activities0 programs. organization. 'nalyzes existing benefits policies of organization ,and prevailting practies among similar Evaluates services,coverage ,and options available through insurance and investment 1lan modification of existing benefits programs ,utilizing knowledge of laws concerning employee insurance coverage and agreements with labor unions ,to ensure compliance with legal requirements.

22

-ecommends benefits plan changes to management ,notifies employees and labor union representatives insurance May 3ob interview,select,hire and train of changes in benefits programs. claims. employees. /pecifications0 *irects performance of clerical function,such as updating records and processing

he +ob specification states the minimum acceptable qualifications that the incumbent must possess to perform the +ob successfully. Based on the information acquired through +ob analysis, the +ob specification identifies the knowledge, skills education, experience, certification and abilities needed to do the +ob effectively. "ndividuals possessing the personal characteristics identiOfied in the +ob specification should perform the +ob more effectively than those lacking these personal characteristics. he +ob specification, therefore, is an im2portant tool in the selection process, for it keeps the selector!s attention on the list of qualifications necessary for an incumbent to perform the +ob and assists in determining whether candidates are essentially qualified. 3ob Aharacteristics0 K/uccessful incumbent will have knowledge of policies and practices involved in personnel Fhuman resource management function Pincluding recruitment , selection, training, and promotion regulations and procedures0 compensation and benefits packages 0labor relations and negotiations strategiesG and human resource information systems. KExcellent written and verbal communication skills as well as deductive and inductive reasoning skills are critical. 5.#.5 3ob 'nalysis Methods he basic methods that ,-M can use to determine +ob elements and the essential knowledge, skills, and abilities for successful performance include the following 0 Dbservation Method for example, most managerial +ob.?sing the observation method, a +ob analyst watches employees directly or review films of workers on the +ob. 'lthough the observation method provides firsthand information, worker often do not function most efficiently when they are being watched, and thus distortions in the +ob analysis can occur. his method also requires that the entire range of activities can occur. his method also requires that the entire range of activities be observable. impossible "ndividuals for interview his is possible with some +obs, but many Method0

23

?sing the individual interview method, a team of +ob incumbents is selected and extensively interviewed. analysis. employees @roup in he results of these interviews are combined into a single +ob the +ob "nterview analysis is essential. Method0 his method is effective for assessing what a +ob entails, and involving

he group interview method is similar to the individual interview method except that a number of +ob incumbents are interviewed simultaneously. 'ccuracy is increased in assessing /tructured +obs, but group dynamics may hinder its effectiveness. Method0 Nuestionnaire

?nder the structured questionnaire method, workers are sent a specifically designed questionnaire on which they check or rate items they perform on their +ob from a long list of possible task items. follow2up echnical questions his technique is excellent for gathering information about +obs. or to clarify Aonference the information received. Method0 ,owever, exceptions to a +6b may be overlooked, and there is often no opportunity to task

he technical method uses supervisions with extensive knowledge of the +ob. ,ere, specific +ob characteristics are obtained from the Lexperts.M 'lthough a good data2 gathering method, it often overlooks the incumbent workers! perceptions about what they do *airy on their +ob. Method0

all adding to its cost. he diary method requires +ob incumbents to record their daily activities. he diary method is the most time consuming of the +ob analysis methods and may have to extend over long periods of time with information provided by individual employees, their immediate supervisors, a professional analyst, or an unobtrusive source such as filmed observations. hese six methods are not meant to be viewed as mutually exclusiveG no one method is universally superior. Even obtaining +ob information from the incumbents can create a problem, especially if these individuals describe what they think they should be doing rather than what they actually do. he best results, then, are usually achieved with some combination of methods 4.2 4.2.1 Meaning of RecruitingRecruiting

-ecruiting is the process by which organizations locate and attract individuals to fill +ob vacancies. Most organizations have a continuing need to recruit new employees to

24

replace those who leave or are promoted, to acquire new skills, and to permit organizational growth. -ecruiting is an even more important activity when unemployment rates are low and economic growth is strong, as firms compete to attract the qualified employees they need to succeed. -ecruiting can be quite expensive. Aompanies spend, on average, over T#,666 recruiting each nonexempt employee, about T9,666 recruiting each exempt employee, and over T4&,666 recruiting each executive from the external labor market. -ecruitment follows ,- planning and goes hand in hand with the selection process by which organizations evaluate the suitability of candidates for various +obs. :ithout accurate planning, organizations evaluate the suitability of candidates for various +obs. :ithout accurate planning, organizations may recruit the wrong number or type of employees. :ithout successful recruiting to create a sizable pool of candidates, even the most accurate selection system is of little use. "t also focuses on the +ob applicant and the ways in which candidate looks for and choose a +ob. 4.2.2 Method-ecruiting 'dvertising0 attracting these +ob seekers to apply for a +ob at a particular company. )ewspaper ads, however, reach a much wider audience. Estimates are that only #6 to 46 percent of the readers of help2wanted ads and an obvious goal ' very common formal recruiting method is newspaper advertising. his method, which is used by virtually all organizations, accounted for 9%6 percent of recruitment advertising expenditure in #$$%. 'ds placed in newspaper are accessible to everyone and thus do not discriminate against any groups in disseminating information about +ob openings. -ecruitment advertising has an obvious target people who are seeking work are currently seeking work. Dther readers are not actively looking for +obs but skim the ads regularly to see what is available. hese readers are unlikely to apply immediately but are developing images of the employers whose ads they see. ' well2designed, informative advertisement may help convince these people to consider the company at some later date when they are interested "nternet in a new +ob. -ecruiting0

have come into being in the past few years. Aompanies find that "nternet recruiting is much less expensive and much fadter than traditional methods. "t is by far the most economical way to reach a nationwide or worldwide audience of +ob candidates. <urther advantages of :eb2based recruiting, as seen by ,- Managers and search consultants. '

25

drawback can sometimes be the very large number of resumes that are submitted, many of which are not at all suited to the positions listed. such as "nternet /ourcer, "nternet -ecruiting /pecialist, and "nternet -ecruiting Manager "nternet -ecruiting "nternet recruiting has grown at a phenomenal rate over the past few years. /eventy2nine percent of <ortune!s @lobal E66 companies recruited on the "nternet in 4666, and #66 percent were expected to do so by 4664. Entire new +ob titles 't first, "nternet recruiting was used largely to reach candidates in the information technology and engineering fields. Each year, as more and more people have gained access to the :eb, a wider and wider range of +obs have been advertised and successfully filled via this recruitment medium. )ew graduates are especially active in using the :eb to locate +ob opportunities, apply online, and research companies as potential availabilities. ; /ites that provide online access to the help2wanted sections of many ma+or newspapers. ; /ites that seek both original +ob listings from employers and resumes from applicants and provide search and matching services for a fee. ; Aompany web sites that contain +ob listings and facilities for online submission of resumes. Employment 'gencies0 'nother formal method of recruiting is to use an emOployment agency. 'n agency finds and prescreens applicants, referring those who seem qualified to the organization for further assessment and final selection. 'n agency can screen effectively only if it has a clear understanding of the position it is trying to fill. requirements to an hus it is very important that an employOment agency. employer be as specific and accuOrate as possible when describing a position and its Employment agencies are covered by itle B"" of the Aivil -ights 'ct and thus are employers, including the following 0 ; -esume bulletin boards on which candidates can list their qualifications and

forbidden to discriminate in screening and referring candidates on the basis of race, color, sex, religion, or national origin. /ometimes, however, agencies have been known to discriminate at the request of firms. <or instance, in a survey of reOcruiters for executive search firms, #5 percent reported having been asked not to refer 3ewish candidates for certain positions. 'lternatively, an employment agency may discriminate without the client organization!s knowledge if the agency!s recruiters mistakenly believe that a certain race or sex of

26

candidate is more likely to be welcomed or if the agency uses an inOvalid selection device with an adverse impact in screening. "n this case, both the agency and the client organization Dn 1ublic /ervice I?/E/J. occasion, could unions 3ob face provide discrimination employment /ervice services as charges. well. 'gencies that provide employment services can be publicly funded or for2profit agencies. 'gencies0

Every state has a publicly funded agency that is affiliated with the ?./. Employment hese public +ob service U Ke! agencies have a number of offices throughout each state. "n addition to adminisOtering unemployment compensation, public +ob service agencies attempt to find +obs for those seeking work. "n most cases, able2 bodied persons who are collecting unemployment compensation must register with the +ob service agencyG however, anyone who is seeking work may register as well. /tate +ob service agencies interview +ob seekers to find out about their skills, experience, and preferences. Employers call in their vacant +ob and describe the +ob specifications2 he agency then matches applicants and refers qualified persons to the employer for interviews. /tate +ob service agencies may also test applicants when requested to do so by employers. 1ublic +ob service agencies fill primarily blue2collar and clerical positions. /ometimes, however, the agencies are able to fill higher2level openings. hey are also able to recruit nationally through their web site, 'merica!s 3ob Bank an Iwww.a+b.dni.usJ. his site lists both openings and resumes of +ob seekers. Dne Vf day in <ebruary 4664, 'merica!s 3ob Bank listed &$9,9$$ individuals seeking work and $4$,#$% +obs to be fitted. /tate and ?/E/ employment agencies offer their serOvices with no direct charge to either the +ob seeker 1rivate, or <or21rofit the employer. 'gencies0

Drganizations use for2profit private employOment agencies to produce a set of prescreened candidatesG +ob seekers use them to locate a suitable position. <or each successful placement, agencies charge a fee that can range from #6 to &6 percent of the employee!s first2year pay. he fee may be paid by either the applicant or the employer, depending on the labor market Employment agencies specializing in administrative support personnel typically handle +obs paying under T56,666 per year, while those filling professional technical +obs in accounting, finance, data processing, retail, software engineering, and technical sales cover +obs paying T56,666 to T%6,666 annually.E9 1rivate employment agencies are

27

presently under threat from "nternet +ob boards and the abilityG of companies to recruit directly through their own :eb sites. able 7.5 shows fee fees charged for some specific positions by selected agencies in #$$$. ' continOgency fee means that the fee is payable only if the position is successfully filled. IheadhunterJ ?nions0 ?nions sometimes provide employment services for their members. <or construction workers and stevedores, labor contracts may specify that employOers first seek candidates at the union hiring hall before recruiting elsewhere. he union hall refers union members 'dditional seeking +obs to companies -ecruiting for evaluation and seOlection, Methods0 firm, regardless he LretainedM fee listed against the *irector of of fee outcome of the effort Business *evelopment position is paid for a search by an executive recruitment

's employers have had to contend wife labor shortages in some regions and occupations, they have used more innovative recruitment methods. /ome of these include +ob fairs, B or radio ads, direct mail, point2of2sale recruitment advertising Ion the assumption that those who buy your product may be interested in making or selling itJG and employment hotlines to provide +ob information twenty2four hours a day. 'nother increasingly common method is Ltelecruiting,M whereby potential candidates who are already employed are phoned in an effort to build their interest in changing employers. able 7./ shows additional methods of attracting employees feat complement traditional re2cruiting activities. 'nother way to innovate when +ob candidates are scarce is to consider bringing them in from an area where employees are more readily available. 'n example of a company that did this effectively is the Dpiyland ,otel in )ashville. :hen fee hotel doubled in si4e in #$$7,#,E66 more workers were needed. :ife & percent unOemployment in fee local labor market, traditional recruiting sources and methods would not yield fee required number of qualified employees. herefore, Dpryland ,otel went to a place where unemployment wo hundred and fifty employees were hired and stood at #4 percentW1uerto -ico.

located in the first year. Because 1ureto -ico has a strong hospitality industry and relatively high unemployment, the company was easily able to find qualified staff. Aampus -ecruiting0 Aampus recruiting is widely used by large and medium2sized firms that need highly educated entry2level employees. Aampus recruiting can be very productive for an organization, since many good candidates can be inOterviewed in a short period of time

28

and at a single location. <urthermore, it is conOvenient because the university recruitment center provides both space and adminOistrative support.79 Aampus recruiting is moderate in cost "t is more expensive than word2of2mouth recruiting, gate hiring, or limited advertising, but it ran be less expensive than using employment agencies Iwhen the company pays the feeJ. ' survey of employers in 4666 found that the cost per hire was about T7,466 and that firms generally interviewed about four to five candidates for each one they hired. Dne disadvantage of campus recruiting is that candidates are available to start work only at certain times of the year. Dther disadvantages include the lack of exOperience and the inflated expectations often held by new graduates, the high cost of hiring graduates for positions that may not really require a college degree, and the difficulty of evaluating candidates who do not possess much relevant work hisOtory. "n the last few years, another cost of campus recruiting in fields such as inforOmation technology, engineering, and accounting has been the hefty signing bonuses required to attract candidates. Bonuses ranged from T#,666 lo about T#6,666 and averaged T&,E66 for these fields in #$$$. he campus recruiting cycle can mean that candidates are interviewed and given +ob offers up to nine months before they are expected to begin work. "n 466#, firms such as "ntel and Aisco /ystems made offers to candidates early in the year before an unexpected downturn in the information technology industry :hen these new graduates were ready to report to work in 3une through /eptember, they were no longer needed. /ome firms asked students to defer reporting work for several monthsG others offered Lunsigning bonusesM to those who relinquished their offers. "n planning a firm!s university recruiting program, the recruiter must first deOcide how many schools to visit Experts advise that more intensive recruiting at a smaller number of appropriately selected schools tends to be more effective than brief visits to a larger number of schools. -ecruiters usually choose universities on the basis of the company!s past experience with their graduates, the degrees ofOfered, the reputation of the school, the demography of the student body Ie.g., sex, age, and minority compositionJ, the geographic location, and the quality of the colOlege placement office. 'fter targeting a subset of schools, the recruiter makes an effort to build up the company!s reputation with students and disseminates detailed information on the types of careers available before making the interview visit ' key role in attracting students may be played by the recruiting brochure distributed prior to the inter view visit. ' British

29

survey has found mat a good brochure addresses students most pressing information needs0 what the +ob duties will be, starting salary ranges, where the company is located, training and career development policies opportunity for promotion, and the disciplines and degrees required.M Makin+ other company literature widely available on campus, awarding scholarships and prizes!, employing students in internship and workFstudy programs, and sendint executives into trie classroom as guest speakers are additional ways to increaseG company!s visibility on campus. By visiting the same schools year after year, the firm can develop visibility and maintain an ongoing relationship with placemen center officials. -ecent research also suggests that a top2class company :eb site important in attracting university students to events both on and off campus, 'lthough campus interviewers may be full2time ,- professionals, they offer are people who work in some other capacity during most of the year. <or instance engineering managers may be pressed into service to conduct campus interview with engineering students for a few weeks each year. 3.A. 1enny sends young staff members to recruit on campus on the assumption that they will relate better to students. Aandidates usually value the opportunity to be interviewed by some one in their own specialty, but this practice can backfire if the interviewer is n well trained for the role.9E Before embarking on recruiting tours, managers should receive in2depth training on how to conduct interviews and should be made aware of EED issues. hey also need to be able to sensibly answer candidates! question about career opportunities, the company!s compensation and benefits package and procedures during the remainder of the selection candidates. process. he firm should plan these visits carefully to make a go2impression. <or trip itself should be well Aampus interviews are usually followed by site2visit or plant2trip invitations the best instance, the firm should pay all travel expenses in advance.

organized, with interviews, meals, and tours careful scheduled so that candidates are not left at loose ends., Aandidates particular en+oy having a sponsor to shepherd them through the entire trip. hey also talking to employees in positions similar to the one for which they are being ct sidered. 4.3 4.3.1 SelectingMeaning-

,iring good people is particularly challenging in technology2based organizations because they require a unique brand of technical and professional people. hey have to be smart and able to survive in the demanding cultures of today!s dynamic organizations. "n

30

addition, many of these LqualifiedM individuals are in short supply and are able to go wherever they like. Dnce applicants have been identified, ,-M must carefully screen final candidates to ensure they fit well into the organization!s culture. he realities of organizational life today may focus on an informal, team2spirited workplace, one in which intense pressure to complete pro+ects quickly and on time is critical, and a 45F9 I45 hours a day, 9 days a weekJ work mentality dominates. /election tools used by ,-M need to Lselect outM people that aren!t team players and can!t handle ambiguity and stress. 4.3.2 Selection /roce## "nitial /canning0 :ant a +ob at :hat!s echnical 1roblem2solving video about skills echnical /kills the 1erformance ,ealth work oyota Motor Manufacturing plant in @eorgetown, 'ssessedQ (eadership 'ssessment environment. >entuckyQ ,ere!s what you can expect in their hiring process over the coming months0

1hase "0 'pplicants complete applications and watch an "nterpersonal /kills one2hour 1hase ""0 'pplicants complete >entucky!s *epartment, of Employment /ervices! /ituation 3udgment "nventoryWmeasuring one!s ability to work in a team and other interpersonal skills. 1hase """0 'pplicants participate in a four2hour program designed to assess individual and group problem2solving skills. 'pplicants are observed by 'ssembly2line 1hase physical 1hase employees "B0 applicants Dne2hour and B"0 who also participate with testing is +ob closely performance in a a interview group at for of an monitored the oyota screening experts. assembly oyota area by next six simulation, interviewers. hospital seasoned months. five2hour

1hase B0 Aonditional oyota employee. 'pplicants unOdergo two and one2half hours of substance Employee assess

/ource0 Based on information contained in ,icheline Maynard, oyota *evises @aieling :ork2out for &ob /eekers,M ?/' oday I'ugust ##, #$$9J, p. &BG @ary *essler, LBalue2 Based ,iring Builds AommitOment,M 1ersonnel 3ournal I)ovember #$$&J, pp. $%2#64G and LAhoosing the -ight 1eople,M ,>,agazine "f our recruiting effort has been successful, we will be faced with a number of potential applicants. Based on the +ob description and +ob specification, some of these respondents can be eliminated. <actors that might lead to a negative de2cision at this point include inadequate or inappropriate experience, or inadequate C or inappropriate education. here

31

might also be other Lred flagsM identified, such as gaps in the applicant!s +ob history, many brief +obs, or numerous courses and seminars instead of appropriate education. he screening interview is also an excellent opportunity for ,-M to deOscribe the +ob in enough detail so the candidates can consider whether they are really serious about applying. /haring +ob description information with the individual frequently encourages the unqualified or marginally qualified to volOuntarily withdraw from candidacy, with a minimum of cost to the applicant or . the organization. Aosts, too, can be minimized with the screening interview by using videoconferencing.E 'nother important point during the initial screening phase is to identify a salary range. Most workers are concerned about their salaries, and while a +ob opening may sound excitingV a low salary may preclude an organization from obtaining excellent talent. *uring this phase, if proper ,-M activities have been conducted, there should be no need to mask salary data. Dnce the initial screening has been completed, applicants are asked to cc the organization!s application form. he amount of information required be only the applicant!s name, address, and telephone number. /ome organizations, on the other hand, may request the completion of a more compret# employment profile. "n general terms, the application form gives a performance2related synopsis of what applicants have been doing during adult life, their skills, and their accomplishments Xsee *iversity and ,-MJ. 'pplications are also useful in that they obtain information the come wants. 'dditionally, completing the application serves as another hurdleG if the +ob requires one to follow directions and the individual fails to do so .Ythe application, that is a +ob2related reason for re+ection. (astly, applications . quire a signature attesting to the truthfulness of the information given and giving permission to check references. "f at a later point the company finds out , information is false, it can result in the immediate dismissal of the individual. >ey "ssues 0 he Aivil -ights 'cts of #$75 and #$$# and subsequent amendments, he only executive orders, court rulings, and other legislation have made it illegal to discriminate on the basis of sex, race, color, religion, national origin, disability, and age. ma+or exceptions to these guidelines involving age, and religion are cases where it can be shown that these criteria are bonafide occupational qualifications IB<DNJ. Many of the items that traditionally appeared on the application formWreligion, age, marital status, occupation of spouse.

32

&"ploy"ent

6e#t#

Drganizations historically relied to a considerable extent on intelligence, apti2tude, ability, and interest tests to provide ma+or input to the selection process. Even handwriting analysis IgraphologyJ and honesty tests have been used in the attempt to learn more about the candidateWinformation that supposedly leads to more effective selection. "n the #$96s and early #$%6s, reliance on traditional written tests for selecOtion purposes decreased significantly. his was attributed directly to legal rulings requiring employees to +ustify as +ob2related any test that is used. @iven the historical difficulty and costs in substantiating this relationship, some organiza2tions merely eliminated employment testing as a selection device. /ince the mid2#$%6s, however, that trend has reversed. "t is estimated that more than 76 percent of all organizations use some type of employment test today. <or these organizations, there is recognition that scrapping employment tests was equivalent to Lthrowing out the baby with the bath water. hey have come to recognize that some tests are quite helpful in predicting who will be sucOcessful on the +ob. here are literally hundreds of tests that can be used by orOganizations as selection tools. Dne can use tests that measure intellect, spatial ability, perception skills, mechanical comprehension, motor ability, personality traits, as well as reading, math, and mechanical dexterity skills. "t is not the purpose of this text to review each of these test categoriesG that is generally the province of books in applied industrial psychology. ,owever, a basic underOstanding of a few test types ests can be beneficial for ,-M practitioners. 1erformance /imulation o avoid criticism and potential liability that may result he single identifying

from the use of psychological, aptitude, and other types of written tests, there has been increasing interest in the use of performance simulation tests. characteristic of these tests is that they require the appliOcant to engage in specific behaviors necessary for doing the +ob successfully. 's a result, performance simulation tests should more easily meet the requirement of +ob2relatedness because they are made up of actual +ob behaviors rather than surrogates. :ork /ampling :ork sampling is an effort to create a miniature replica of a +ob. 'pplicants demonstrate that they possess the necessary talents by actually doing the tasks. By carefully devising work samples based on +ob analysis data, the knowledge, skills, and abilities needed for each +ob are determined. hen each work sample element is matched with a corresponding +ob performance element. <or example, a work sample for a customer service representative at <irst ?nion Bank may involve computation on a

33

keyboard, requiring the appli2cant to make computations during a customer transaction. 't ,ome *epot, a potential check2out clerk is screened for a +ob to scan the prices of your purchases quickly and accurately. Most go through a similar work2sampling session where supervisors demonstrate how to scan accurately, ensuring that the product did indeed ring up. hen the candidate is given an opportunity to show that he or she can he handle the +ob. :ork sampling, then, reflects actual Lhands2onM experience.

advantages of work sampling over traditional pencil and paper tests should be obvious. Because content is esOsentially identical to +ob content, work sampling should be a better predictor of short2term performance and should minimize discrimination. 'dditionally, because of the nature of their content and the methods used to determine content, well2 constructed work sample tests should easily meet EEDA L+ob2relatedM reOquirements. he main disadvantage is the difficulty in developing good work samples for each +ob. <urthermore, work sampling is not applicable to all levels of the organization. "t is often difficult to use for managerial +obs because it is hard to create a work sample test that can address the full range of manOagerial activities. 'ssessment Aenters ' more elaborate set of performance simulation tests, specifically designed to evaluate a candidate!s managerial potential, is adminis2tered in assessment centers. 'ssessment centers use procedures that incorporate group and individual exercises. 'pplicants go through a series of these exercises and are appraised by line executives, practicing supervisors, andFor trained psy2chologists as to how well they perform. 's with work sampling, because these exercises are designed to simulate the work that managers actually do, they tend to be accurate predictors of later +ob performance. "n some cases, however, the assessment center also includes traditional personality and aptitude tests. esting in a @lobal 'rena Many of the standard selection techniques de2scribed in this text are not easily transferable to international situations. :here the decision has been made to recruit and employ host2country nationals, typiOcal 'merican testing will be acceptable in some countries but not in others. <or example, although handwriting or graphology tests arc sometimes used in the ?nited /tates, they are frequently used in <rance. "n @reat Britain, most psy2chological tests like graphology, polygraph, and honesty tests arc rarely used in employment. 'ccordingly, whenever 'merican corporations prepare to do busi2ness abroad, their practices must be adapted to the cultures and regulations of the country in which they will operate. he Aomprehensive "nterview hose applicants who pass the initial screenOing,

34

application form, and required tests are typically given a comprehensive in2terview. he applicant may be interviewed by ,-M interviewers, senior man2agers within the organization, a potential supervisor, potential colleagues, or some or all of these. "n fact, in a company like *isney, applicants are interviewed by some 56 people. he comprehensive interview is designed to probe areas that cannot be adOdressed easily by the application form or tests, such as assessing one!s motivaOtion, ability to work under pressure, and ability to Lfit inM with the organizaOtion. ,owever, this information must be +ob related. he questions asked and the topics covered should reflect the +ob description and +ob specification inforOmation obtained in the +ob analysis. his means that not only the LobviousM ilOlegal questions should be avoided, so too should inappropriate questions. 're "nterviews EffectiveQ hat question is, L're ' common question arises whenever we discuss interviews.

interviews effective for gathering accurate information from which selec2tion decisions can be madeQ he interview has proven to be an almost univerOsal selection toolWone that can take a number of forms. "t can revolve around a one2on2one encounter between the interviewer and the applicant Ithe traditional interviewJ or involve several individuals who interview an applicant at once Ithe panel interviewJ. "nterviews can follow some predetermined pattern wherein both the questions and the expected responses are identified Ia situaOtions interviewJ. he interview can also be designed to create a difficult environment in which the applicant is Lput to the testM to assess his or her conOfidence levels. his is frequently referred to as the stress interview Isee Ethical "ssues in ,-MJ. "rrespective of how the interview is conducted, it is understood that few people get +obs without one or more interviews. his is extremely interesting, given that the validity of the interview as a selection tool has been the sub+ect of considerable debate. (et!s look at the research findings regarding interviews. ?nfortunately for recruiters, interview situations aren!t always this cut and dried. -ather, many factors enter into the deliberation in determining if a candidate is a good fit for the organization. 'lthough interviews are typically part of every +ob2search process, summaries of research on interviewing have concluded that the interview is expensive, inefficient, and often not +ob related, generated over the past few decades, still hold today. (et!s elaborate on a few of them. :hen an interviewer has already seen the candidate!s resume, application form, possible test scores, or appraisals of other interviewers, bias may be inOtroduced. "n such cases,

35

the interviewer no longer relies on the data gained in the interview alone. Based on the data received prior to the interview, an image of the applicant is created. Much of the early part of the interview, then, beOcomes an exercise wherein the interviewer compares the actual applicant with the image formed earlier. "n addition to interviewer bias is something that is diOrectly related to the applicant!s actions. his is referred to as impression manOagement. "mpression management refers to one!s attempt to pro+ect an image that will result in receiving a favorable outcome. hus, if an applicant can say or do something that is viewed favorably by the interviewer, then that person may be viewed more favorably for the position. <or example, suppose you find out that the interviewer values workers who can work seven days a week, twelve2plus hours a day, if needed. ?nderstandably, few if any +obs can sustain this work ' review of the research has generated the following conclusions about interviews0 ; 1rior knowledge about the applicant can bias the interviewer!s evaluation. ; ; ; ; ; ; ; ; ; he interviewer often holds a stereotype of what represents a LgoodM applicant. he interviewer often tends to favor applicants who share his or her own attitudes. he order in which applicants are interviewed often influences evaluations he order in which information of information is is given the elicited influences high evaluations. weight. interview. )egative unduly

he interviewer may make a decision as to the applicant!s suitability in the first few he interviewer may forget much of the interview!s content within minutes after its /tructured and welt2organized interviews are more reliable.

minutes conclusion.

he interview is most valid in determining an applicant!s organizational fit level of

motivation, and interpersonal skills. schedule over a long period of time. But that!s the interviewer!s view nonetheless. 'ccordingly, making statements of being a workaholic, which conforms to this interviewer!s values, may result in creating a positive impression. "nterviewers often have a remarkably short and inaccurate memory. <or example, in one study of an interview simulation, a 46 minute videotape of a seOlection interview was played for a group of 56 interviewers. ,ollowing the playOing of the tape, the interviewers were given a 46 question test. 'lthough all the questions were straightforward and factual, the average number of wrong anOswers was #6. he researchers! conclusionQ Even in a short interview, the averOage interviewer remembers only half of the information. ,owever, taking notes during an interview has been shown to reduce

36

memory loss. )ote2taking is also usefulWalbeit possibly disconcerting for the interviewee Wfor getting more accurate information and for developing a clearer understanding of the appliOcant!s fit by allowing follow2up questions to be asked. 'nother research finding points out that the interview offers the greatest value as a selection device in determining an applicant!s organizational fit, level of motivation, and interpersonal skills. his is particularly true of senior man2agement positions. 'ccordingly, it is not unlikely for candidates for these posi2tions to go through many extensive interviews with executive recruiters, company executives, and even board members before a final decision is made. /imilarly, where teams have the responsibility to hire their own members, it is commonOplace for each team member to interview the applicant. Dne final issue about inOterviews revolves around when the interviewer actually makes the decision. Early studies indicated that interviewers made their choice to hire or not hire a canOdidate within the first few minutes of the interview. :hile that belief was widely held, subsequent research docs not support these findings. "n fact, this research showed that initial impressions may have little effect, unless that is the only inOformation available for an interviewer to use. /o what sense can we make of these issues raised about interviewsQ 'nd where might interviews be most appropriateQ "f interviews will continue to have a place in the selection decision, they appear to be more appropriate for the high2turnover +obs, and the less2 routine ones like middle2 and upper2level managerial positions. "n +obs where these characteristics are important in determining suc2cess, the interview can be a valuable selection input. "n non routine activities, especially senior managerial positions, failure Ias measured by voluntary termi2nationsJ is more frequently caused by a poor fit between the individual and the organization than by lack of competence on the part of the individual. "nter2viewing can be useful, therefore, when it emphasizes the candidate!s ability to fit into the he organization rather -ealistic than specific 3ob technical skills. 1review

he primary purpose of any selection device is to identify individuals who will be effective performers. But it is! not in an interviewer!s best interest to find good prospects, hire them, and then have them leave the organization. herefore, part of selection should he concerned with reducing voluntary turnover and its asso2ciated costs. Dne device to achieve that goal is the realistic +ob preview I-31J. :hat is a realistic +ob previewQ "t may include brochures, films, plant tours, work sampling, or merely a2short script made up of realistic statements that acOcurately portray the +ob. he key element in -31 is that

37

unfavorable as well as favorable information about the +ob is shared. :hile the -31 is not normally treated as a selection device, it should take place during the interview and it has demonstrated effectiveness as a method of measuring +ob survival among new employees, so we!ve included it here. Every applicant acquires during the selection process a set of expectations about the organization and about the specific +ob the applicant is hoping to be offered. "t is not unusual for these expectations to he excessively inflated is a result of receiving almost uniformly positive information .about the organization and +ob duringG recruitment and selection activities. Evidence suggests however, that interviewers may be erring by giving applicants only favorable information. More .specifically, research leads us to conclude that applicants who have been given a realistic +ob preview Ias well as a realistic preview of the organizational hold lower and more realistic expectations about the +ob they will be doing and are better prepared for coping with the +ob and its frustrating elements. -ealistic +ob previews also prepared to work best for those +obs that are mere attractive to the individual, resulting in lower turnover rates. Most studies demonOstrate that giving candidates a realistic +ob preview before offering them the +ob reduces turn over without lowering acceptance rates. Df course, it is not unreaOsonable to suggest that exposing .in applicant to -31 may also result in the hirOing of a more committed individual. Background "nvestigation he next step in the process is to undertake background investigation of those applicants who appear to offer potential as employees. Background investigations are intended to verify that what was stated on the application form is correct and accurate information. his can include contacting former employers to confirm the candidate!s work record and to obtain there appraisal of his or her performance contracting other +ob related and personal references, verifying the educational accomplishments. Based on a concept unqualified privilege, some courts have ruled that emOployers must be able to talk to one another about employees. 'dditionally, about half of the states have laws which protect employers from Lgood2faith referOences. 'ccordingly, these discussions may be legal and may not invade one!s right to privacy so long as the discussion is a legitimate concern for the busiOnessWand in some cases if the applicant has given permission for the background investigation to take place. <or example, had a Midwest hospital learned that one of its anesthesiologist applicants had lost his license in there states for subOstance abuse, it clearly would not have hired him. ) Moreover, some courts have also endorsed a company defense called the L'fter2'cquired Evidence

38

*octrine,M which has been used to significantly reduce the organization!s liability to dis2 crimination claims. he essence of this controversial doctrine involves evidence that a company acquires after some action has been taken against an employeeW like a termination. "n cases where this defense has been used, the courts have ruled that even it discrimination did occur, the company may not be responsible because some sort of Lresume fraudM existed. Df (nurse, the company had to have made us hiring decision without this inform ?nion, and the employee!s action had to include some sort of misconduct that company polity indicates could be grounds for dismissal.5Z "n conducting a background investigation, two methods can be used0 the inOternal or the external investigation. "n the internal investigation, ,-M underOtakes the task of questioning former employers, personal references, and possiObly credit sources. 'lthough this is a viable option, and one avidly used, unless the investigation process is handled thoroughly, little useful information may of found. Dn the other hand, the external investigation typically involves using a reference2checking firm. 'lthough there is a greater cost associated with this investigation, such firms have a better track record of gathering pertinent infor2mation, as well as being better informed on privacy rights issues. ,owever it H done, documentation is the important element. /hould an employer be called upon to +ustify what has or has not been found, supporting documentation is invaluable. Aonditional 3ob Dffer "f .# +ob applicant has passed each step of the selection process so far, it is typically customary for a conditional +ob offer to be nude. Aonditional +ob offers usually are made by an ,-M representative Iwe!ll revisit this momentarilyJ. "n essence, what the conditional +ob offer implies is that it everything checks out okay2 passing a certain medical, physical or substance abuse test P the conditional nature of the +ob offer will be removed and the offer will be permanent. MedicalF1hysical Examination he next2to2last step in the selection process may consist of having the applicant take a medicalFphysical examination. 1hysical exams can only be used as se2lection device to screen out those individuals who are unable to physically comply with the requirements of +ob, <or example, firefighters are required to perform a variety of activities that require a certain physical condition. :hether it is climbing a ladder, lugging a four2inch water2tilled hose, or carrying in in+ured victim, these individuals must demonstrate that they are fit for the +ob. <or +obs that require certain physical characteristics, then, the physical

39

Lexamination may be +ob related. ,owever, this may include a verv small proportion of +obs today. /hould a medical clearance he required to indicate that the applicant is physiOcally fit for the essential [ob elements, a company must be able to show that it is a +ob2related requirement. <ailure to do so may result in the physical examiOnation creating an adverse impact. 'lso, the a companv must keep in mind the 'mericans with *isabilities 'ct. hus, even a valid physical examination may only be required after a conditional \on offer. ,aving a physical disability may not be enough to exclude an individual from the +ob. Aompanies, as we menOtioned in may be required to make reasonable accommodations for these individuals. -emember, however, that in doing so a company must show that the reasoning behind this requirement is [ob related. 'side from its use as a screening tool, there is another purpose for the physOical exam0 to show that minimum standards of health exist to enroll in company health and life insurance programs. 'dditionally, a company may use this exam to provide base data in case of an employee!s future claim of in+ury on the +ob. his occurs, however, after one has been hired. "n both cases, the exam is paid for by the employer. Dne last event fits appropriately under medical examination0 the drug test. many companies require applicants to submit to a drug test. :here in this process that test occurs is somewhat immaterialG the fact remains that failing an employment drup test may result +ob in the re+ection of an applicant. Dffer

hose individuals who perform successfully in the precedingG steps are now con2sidered to be eligible to receive the employment offerQ :ho makes the final em2ployment offerQ he answer, of course is, it depends2. for administrative pur2poses Iprocessing salary forms, maintaining EEo /tatistics, ensuring a statement exists which asserts that employment ministrative. is not guaranted etc.J the offer typically is made by an ,-M representative, but that individual!s role should be only ad2 he actual hiring decision should be made by the manager in the ;department where the vacancy exists. :hile this might not be the situation in all organizations, the manager of the department should have this authority. <irst, the applicant will eventually work for this manager, and therefore a good fit be2tween boss and employee is necessary. /econd, if the decision made is not correct, the hiring manager has no one else to blame. "t!s also important to rememberW as we previously mentioned that those finalists who don!t get hired deserve the courtesy of being notified that they didn!t get the +ob.

40

1racticeF

'pplication

in

the

bank0

his organization the ,- department perform +ob analysis,prepared +ob description,and also +ob specification. hese organization have every employee are prepared for +ob analysis. he organization have some Aorporate /trategic plan. he organization have prepared manpowerFhuman resource plan. ,- *epartment help to other department to prepare ManpowerFhuman resources plan. hese methods are used to rend Management Aomputerized <orecasting. ,ead of the ,-* process the human resources planning of this organization. he organization have some /uccession plan for the top management. he creative,trustworthy,"nternational Aourageous,responsive are the principles of recruitment of the organization. "nternal +ob watch this recruiting sources that " prefer most. ,ead of the *epartment makes the final decision in the selection process. :hen anybody request to select some one the organization faced problem. he organization appoint some Aonsultant for selecting employees. he organization have formal and informal Drientation program for the new employees. Drientation,on hand training about the +ob this step are taken to anternalize the new employees in the organization. Ahapter *eveloping Employees E.# E.#.# raining0 Meaning0 2E forecast human resources demand. 'nalysis. +udgments.

Every organization, like /tarbucks, needs to have well2ad+usted, trained, and ex2 perienced people to perform the activities that must be done. 's +obs in today!s dynamic organizations have become more complex, the importance of employee education has increased. :hen +obs were simple, easy to learn, and influenced to only a small degree by technological changes, there was little need for emOployees to upgrade or alter their skills. But that situation rarely exists today. "nOstead, rapid +ob changes are occurring, requiring employee skills to be transOformed and frequently updated. "n organizations, this takes place through what we call employee training.

41

raining is a learning experience in that it seeks a relatively permanent change in an individual that will improve the ability to perform on the +ob. :e typically say training can involve the changing of skills, knowledge, attitudes, or behavOior. "t may mean changing what employees know, how they work, their attitudes toward their work, or their interaction with their coworkers or supervisor. <or our purposes, we will differentiate between employee training and employee development for one particular reason. 'lthough both are similar in the methOods used to affect learning, their time frames differ. raining is more present2day orientedG its focus is on individuals! current +obs, enhancing those specific skills and abilities to immediately perform their +obs.47 <or example, suppose you enOter the +ob market during your senior year of college, pursuing a +ob as a marOketing representative. 'lthough you have a degree in Marketing, when you are hired, some training is in order. /pecifically, you!ll need to learn the company!s policies and practices, product information, and other pertinent selling practices. in your current his, by +ob. definition, is +ob2specific training, or training that is designed to make you more effective Employee development, on the other hand, generally focuses on future +obs in the organization. 's your +ob and career progress, new skills and abilities will be required. <or example, if you become a sales territory managerG the skills needed to perform that +ob are quite different from those required for selling the products. )ow you will be required to supervise a number of sales representa2tives, requiring a broad2based knowledge of marketing and very specific man2agement competencies like communication skills, evaluating employee perform2ance, and disciplining problem individuals. 's you are groomed for positions of greater responsibility, employee development efforts can help prepare you for that day. E.#.4 raining Methods0 his section considers the choice of methods for employee training. :ith training ob+ectives defined and learning principles in mind, the trainer must choose approOpriate training methods and design the sequence of events in the training proOgram. 1erhaps the first decision to be made is whether to conduct the training on the +ob or away from the +ob. "n many cases, the decision is to do some of both <igure diagrams two training options. "n each case, the right circle represents. what an employee already knows when hired. he left circle is what he or she needs to know to be a fully effective employee. "f the person was hired because he or she already possessed some relevant skill and knowledge, there will be overlap between the circles,

42

and this content need not be trained. he remaining area of +ob skill is what the employee must learn. /ome aspects of this can be learned in formally by on2the2+ob practice and informal coaching, whereas some should be taught formally. he formal instruction could be structured on2the2+ob off training, the2+ob classroom training, or a combination of both. <igure diagrams a +ob that is largely learned on the +ob, perhaps waiting tables in a pizza restaurant. <igure shows a +ob in which more off2the2+ob training is required2perhaps tax return preparation. he final increment in speed, confidence, and dealing with un usual nuances always happens with on2the2+ob practice, but many principles and laws must first be learned in the classroom. E.#.4.# Dn2the23ob raining <ormal on2the2+ob training ID3 J is contacted at the [work site and in the context of the actual +ob. he vast ma+ority of all industrial training is conducted on the +ob, often by the trainee!s immediate superior or a nominated peer trainer. Dn2the2+ob training has several advantages0 #. Because the training setting is also the performance setting, the transfer of training to the &. +ob is maximized. 4. he costs of a separate training facility and a full2time trainer are avoided or reduced. rainee motivation remains high because it is obvious to trainees that what they are in relevant to the +ob. learning ' formal D3

5. rainees @enerally find on the +ob training more valuable then class room training. program should be constructed as carefully as a classroom trainOing program. "deally, the supervisor or peer who acts as the trainer will be taught how to introduce and explain new tasks. he trainer should consider carefully the order in which to introduce new tasks and should use a written checklist and ob2+ectives for each stage of the training process.5& 1eriodically, the trainer should give the trainee performance tests to ensure that the material is being mastered and to maintain trainee motivation through feedback. 3ob "nstruction rainOing, a procedure developed to train new defense plant workers during :orld :ar "", is outlined in able . his is a proven and systematic way to teach a new task. is Dn the negative side, D3 may suffer from frequent interruptions as the trainer or trainee is called away to perform other duties. Moreover, what many organiza2tions call D3 really very little training at all. Employees are abandoned on the +ob and expected to pick up necessary skills as best they can. Dften these employOees are not informed about

43

important but infrequent events Isuch as emergency procedures or annual maintenanceJ and may learn bad habits and unsafe proceOdures from coworkers. able ,ow #. 2 4. 2 2 &. 2 5. ,ow /tep a. b. c. d. /tep a. b. c. d. a. b. c. d. /tep a. b. c. d. aper off assistance. 1ut -einstruct 5 the worker Encourage Aheck 0 on his *emonstrate ,ave ,ave the the /tep worker Aorrect as & worker 0 explain ry perform the out the key 1lace 4 0 <ind # 1ut out 0 the what 'rouse the 1resent worker the he ,ave 1ick ,ave right the equipment, workplace to 1repare worker he or the at she ,ow (ist out Break the the everything material, and properly 0 to ,ave much skill you down 3ob @et "nstruction -eady a expect the "mportant key and raining to 1rocedure instruct timetable when +ob steps points ready supplies arranged. "nstruct :orker ease knows "nterest correctly Dperation ell /how Explain 1erformance operation. points. errors. needed. <ollow2up own. questioning. frequently.

2 's you would expect the worker to maintain it.

44

E.#.4.4

Dff2the23ob

raining

Dff2the2+ob training is conducted in a location specifically designated for training. "t may be near the workplace or away from work, at a special training center or a resort. Aonducting the training away from the workplace minimizes distractions and allows trainees to devote their full attention to I material being taught ,owever, off2the2+ob training programs may not provide as much transfer of training to the actual +ob as do on2 the2+ob programs. Many people equate off2the2+ob training with the lecture method, but in fact a very wide variety of methods can be used. able lists a number of potential training methods and activities. able exactly 0 what /ome they Dff2the23ob will do raining differently Methods back and on 'ctivities the +ob. 'ction planning P Dften a closing activity asking participants to specify of set goals about Behavior modeling training P ?se of videotape to demonstrate the steps in a supervisory activity such as conducting a disciplinary "nterviewJ, followed by role2played skill practice and game. Brainstorming2Areative "dea2generation exercise in which no criticism as allowed. Business game2Aomputerized business simulation that requires participants to make decisions about strategy and investments and then provides financial results based on the decisions. Buzz group2 /mall2group discussion of several minutes duration on an assigned topic. Aase study from a non2paragraph vignette to a fifty page ,afvard2style case. *emonstration Expenditure <ield @roup @uest him "ce breaker @et2acquainted exercise. "nformation search2 'sking trainees to locate the answers to questions in the training materials of manuals provided. or exercise trip discussion speaker herself feedback. Behavioral simulation2(arge2scale multiperson role2play, noncomputerized business

@uided teaching2 *rawing from the group the points the lecturer otherwise would make

45

"nter group exchange /mall groups share their ideas or findings with another group. (earning (ecture Mental "magery2 'sking participants to close their eyes and visualize or recall something or other 1air 1anel 1roblem2solving -ole21lay /elf2assessment instrument or quiz 'n example is a conflict resolution2style inventory. eam building2 ' series of group activities and sometimes surveys used to develop team skills and role clarify in a team of people who must work together closely on the +ob. Bideotapes2 Aan be used alone but are most effective if embedded in discussion and practice. E.4 E.4.# *eveloping0 Meaning0 engage in mental rehearsal of a physical with or interpersonal skill. Dutdoor leadership training2 physical and eam activities that may include hiking, rope courses or along trio problem2solving discussion activities. tasks discussion activities game2 Aompetition between teams in a quiz fomat

challenges

Employee development, by design, is more future oriented and more concerned with education than employee +ob2specific training. By education we mean that employee development activities attempt to instill sound reasoning processesW to enhance one!s ability to understand and interpret knowledgeWrather than im2parting a body of facts or teaching a specific set of motor skills. *evelopment, therefore, focuses more on the employee!s personal growth. /uccessful employ2ees prepared for positions of greater responsibility have analytical, human, con2ceptual, and specialized skills. hey are able to think and understand. raining, per se, cannot overcome an individual!s inability to understand cause2and2effect relationships, to synthesize from experience, to visualize relationships, or to think logically. 's a result, we suggest that employee development be predominantly an education process rather than a training process. "t is important to consider one critical component of employee development0 all employees, regardless of level, can be developed. ,istorically, development was reserved for potential management personnel. 'lthough it is critical for in2dividuals to be trained in specific skills related to managingWlike planning, or2ganizing, leading, controlling, and decision makingWtime has taught us that these skills are needed by

46

nonmanagerial employees as well.

he use of work teams, reductions in supervisory

roles, allowing workers to participate in setting the goals of their +obs, and a greater emphasis on quality and customers have changed the way developing employees is viewed. 'ccordingly, organizations now require new employee skills, knowledge, and abilities. hus, as we go through the next few pages, note that those methods used to develop employees in general are the same as those used to develop future management talent. E.4.4 Method0 /ome development of an individual!s abilities can take place on the +ob. :e will review several methods, three popular on2the2+ob techniques I+ob rotation, assistant to positions, and committee assignmentsJ and three off2the2+ob methods Ilecture courses and seminars, simulation exercises, and outdoor trainingJ. #. 3ob -otation0 3ob rotation involves moving employees to various positions in the organization in an effort to expand their skills, knowledge, and abilities. 3ob rotation can be either horizontal or vertical. Bertical rotation is nothing more than promoting a worker into a new position. "n this chapter, we will emphaOsize the horizontal dimension of +ob rotation, or what may be better understood as a short2term lateral transfer. 3ob rotation represents an excellent method for broadening an individual!s exposure to company operations and for turning a specialist into a generalise. "n addition to increasing the individual!s experience and allowing him or her to absorb new information, it can reduce boredom and stimulate the development of new ideas. "t can also provide opportunities for a more comprehensive and reliable evaluation of the employee by his or her 4. 'ssistant2 o supervisors. 1ositions0

Employees with demonstrated potential are someOtimes given the opportunity to work under a seasoned and successful manager, often in different areas of the organization. :orking as staff assistants or, in some cases, serving on special boards, these individuals perform many duties under the watchful eye of a supportive coach Isee :orkplace "ssuesJ. "n doing so, these employees get exposure to a wide variety of management activities and are groomed for assuming the duties of the next higher level. &. Aommittee 'ssignment0 Aommittee assignments can provide an opportunity for the employee to share in decision making, to learn by watching others, and to investigate specific organizational problems.

47

:hen committees are of a temOporary nature, they often take on task2force activities designed to delve into a particular problem, ascertain alternative solutions, and make a recommendation for implementing a solution. hese temporary assignments can be both interestOing and rewarding to the employee!s growth. 'ppointment to permanent committees increases the employee!s exposure to other members of the organization, broadens his or her understanding, and pro2vides an opportunity to grow and make recommendations under the scrutiny of other committee members. "n addition to the on2the2+ob techniques described G above, we will briefly discuss three of the more popular ones0 lecture courses and seminars, simulations, and outdoor 5. (ecture Aourses and training. /eminars0

raditional forms of instruction revolved Faround formal lecture courses and seminars. hese offered an opportunity for individuals to acquire knowledge and develop their conceptual and analytical abilities. <or many organizations, they were offered in2house by the organizaOtion itself, through outside vendors, or both. oday, however, technology is allowing or significant improvements in the training field. ' growing trend at companies is to provide lecture courses and seminars revolving around what we call distance learning. hrough the use of digitized computer technology, a facilitator can be in one location giving a lecture, while simultaneously being transmitted over fiber2optic cables, in real time, to several other locations. <or example, the Memphis, ennessee2based specialty chemicals manufacturer, Buckman (aboratories, uses distance learning to tram all its employees. :ith more than 3 ,466 employees located in %6 different countries, the opportunity to receive training has been made more cost effective and more LlearnerM friendly because of distance learning. Dver the past few years, we!ve witnessed an expansion of lecture courses and seminars for organizational members. his has been in the form of returnOing to college classes, either for credit toward a degree or by way of Lcontinuing educationM courses. Either way, the outcome is the same. Employees are taking the responsibility to advance their skills, knowledge, and abilities in an effort to enhance their value addedness to their current, or future E. employer. /imulations0

/imulations were previously cited in Exhibit %2E as a training technique. :hile critical in training employees on actual work experiences, simulations are prob2ably even more popular for employee development. he more widely used sim2ulation exercises include

48

case

studies,

decision

games,

and

role

plays.

he case2study2analysis approach to employee development was popularized at the ,arvard @raduate /chool of Business. real problems that managers have faced. aken from the actual experiences of rainees study the cases to de2termine organizations, these cases represent attempts to describe, as accurately as pos2sible, problems, analyze causes, develop alternative solutions, select what they believe to be the best solution, and implement it. Aase studies can provide stim2ulating discussions among participants, as well as excellent opportunities for in2dividuals to defend their analytical and +udgmental abilities. "t appears to be a rather effective method for improving decision2making abilities within the constraints of limited information. /imulated decision games and role2playing exercises put individuals in the role of acting out supervisory problems. /imulations, frequently played on a com2puter program, provide opportunities for individuals to make decisions and to witness the implications of their decisions for other segments of the organizaOtion. 'irlines, for instance, find that simulations are a much more cost2effective means of training pilots W especially in potentially dangerous situations. 'nd should the trainee!s decision be a poor one, there typically would be no adverse effects on the learner W other than an explanation of why his or her choice was not a good one. -ole playing allows the participants to act out problems and to deal with real people. 1articipants are assigned roles and are asked to react to one another as they would have to do in their managerial +obs. he advantages of simulation exercises are the opportunities to attempt to Lcreate an environmentM similar ,,to real situations managers face, without the high costs involved should the actions prove to be undesirable. Df course, the disadvantages are the reverse of this0 it is difficult to duplicate the pressures and realities of actual decision making on the +ob, and individuals often act differ2ently in real2life situations than they do in a simulated 7. Dutdoor exercise. raining0

' trend in employee development has been the use of outOdoor Xsometimes referred to as wilderness or survivalJ training. he primary focus of such training is to teach trainees the importance of working together, of gelling as a team. Dutdoor training typically involves some ma+or emotional and physOical challenge. his could be white2water he rafting, mountain climbing, paint2ball games, or surviving a week in the L+ungle.M

purpose of such training is to see how employees react to the difficulties that nature presents to them. *o they face these dangers aloneQ *o they LfreakMQ Dr are they

49

controlled and successOful in achieving their goalQ

he reality is that today!s business his has reinforced the a group.

environment does not permit employees to stand alone. succeeding as a member of

importance of workOing closely with one another, building trusting relationships, and E.& raining Evaluation0 "t is easy to generate a new training program, but if the training effort is not eval2uated, it becomes possible to rationalize any employee2training efforts. "t would be nice if all companies could boast returns on investments in training as do Mo2torola executives, who claim they receive T&6 in increased productivity for every dollar spent on training, as well as a #&$ percent increase in sales productivOity. But such a claim cannot be made without properly evaluating training. he following is Aan we generalize how training programs are typically evaluatedQ

probably generalizable across organizations0 /everal managers, representatives from ,-M, and a group of workers who have recently completed a training program are asked for their opinions. "f the comments are generally positive, the program may get a favorable evaluation and the organization will continue it until someone decides, for whatever reason, it should be eliminated or replaced. he reactions of participants or managers, while easy to acquire, are the least validG their opinions are heavily influenced by factors that may have litOtle to do with the training!s effectiveness W things like difficulty, entertainment value, or personality characteristics of the instructor. ,owever, trainees! reacOtions to the training may in fact provide feedback on how worthwhile the parOticipants viewed the training. Beyond general reactions, training must also be evaluated in terms of how much the participants learned, how well they are using their new skills on the +ob Idid their behavior changeQJ, and whether the training program achieved its desired results Ireduced turnover, increased cusOtomer service, 1erformance2 based Evaluation etc.J. Measures

:e!ll explore three popular methods of evaluating training programs. hese are the post2 training performance method, the pre2post2training performance method, and the pre2 post2training 1ost2 raining performance with control group method. Method0 1erformance

he first approach is referred to as that post2training performance method. 1articipants! performance is measured after attending a training program to determine if behavioral changes have been made. <or example, assume we provide a week2long seminar for

50

,-M recruiters am structured interviewing techniques. :e follow up one month later with each parOticipant to see if, in fact, the techniques addressed in the program were used, and how. "f changes did occur, weM may attribute them to the training. But caution must be in order, for we cannot emphatically state that the change in behavior was directly related to the training. Dther factors, like reading a current ,-M +ournal or attending a presentation at a local /ociety of ,uman -esource agreement, may have also influenced the change. 'ccordingly, the performance method may overstate the benefits of training. 1re21ost2 raining 1erformance Method0 "n the pre2post2training performOance method, each participant is evaluated prior to training and rated on actual +ob performance. 'fter instructionWof which the evaluator has been kept unawareWis completed, the employee is reevaluated. 's with the post2 training performance method, the increase is assumed to be attributed to the instruction. ,owever, in contrast to the post2training performance method, the pre2post2performance method 1re21ost2 raining deals directly 1erformance with with Aontrol +ob Aroup behavior. Method0

he most sophisticated evaluative approach is the pre2post2training performance with conOtrol group method. ?nder this evaluation method, two groups are established and evaluated on actual +ob performance. Members of the control group work on the +ob but do not undergo instruction. Dn the other hand, the experimenOtal group is given the instruction. 't the conclusion of training, the two groups arc reevaluated. "f the training is really effective, the experimental group!s perOformance will have improved, and its performance will be substantially better than that of the control group. performance. 'lthough a number of methods for evaluating training and development pro2grams may exist, these three appear to be the most widely recognized. <urther2more, the latter two methods are preferred, because they provide a stronger meas2ure of behavioral change directly S attributable 1racticeF'pplication to in the training the effort. bank0 his approach attempts to correct for factors, other than the instruction program, that influence +ob

/trengthening current skill and developing future prospects it is the policy regarding training and development. he organization determine training needs for its employees. -esearch "nsight the measure used for determining training needs. his organization have evaluate the effectiveness of training program.

51

1erformance appraisal after training this methods are used in evaluating training effectiveness. 1lanning /cheduling and "mplementing training and development uses making for the training and development. Chapter /erfor"ance 2pprai#al .1 Meaning of /2 Dnce the employees have been selected trained and motivated, they are then appraised for their performance. ' is the step where the management finds out how effective it has been at hiring and placing employees. "f any problems are identified, steps are taken to communicate with employees and to remedy them. Drganizations require consistent levels of high performance from their employees in order to survive in a highly competitive environment. Most organizations have some forms of performance appraisal of their employees. Evaluation of employee is one of the most universal practices of management. "t is applied formally or informally to all employees. "t means many things to many people. "t is a measurement processG it is an exercise in observation and +udgmentG it is a feedback process. "t is a control device, which is used by the organization to accomplish their predetermined goals. 1erformance refers to an employee!s accomplishment of assigned tasks. 1erformance means doing a +ob effectively and efficiently. 1' is a process of evaluating an employee!s performance of a +ob in terms of its requirements. 1erformance appraisal is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance. "t provides the basis for assessment of employee contributions, coaching for improved performed and distribution of economic rewards. "t refers to the outcome of the behavior of employees. performance. 7.4 Method of 1'0 he appraisal process begins with establishment of performance standards in accordance with the organization!s strategic goals. 'ppraisal systems require performance standards, which serve as benchmarks against which performance is measured. o be effective standards should relate to the desired results of each +ob. 3ob analysis uncovers specific performance standards by analyzing the performance of hus performance appraisal means deciding the value of work done by an individual. "t is a process by which organizations evaluate individual +ob $

52

current employees.

o hold employees accountable, a written record of the standards

should exist and employees should be advised of those standards before the evaluation occurs. "f performance standards are not +ob 2related, the evaluation can lead to inaccurate or biased resultsG harming the mangers! relationship with their employees and violating equal employment opportunity rulings. 1erformance evaluation also requires reliable performance measures, the ratings used to evaluate performance. o be helpful, they must be easy to use, be reliable and report on the critical behaviors that determine performance. 1erformance measures also may be sub+ective or ob+ective. Dnce performance standards are set, it is necessary to communicate these expectationsG it should not be part of the employees +ob to guess what is expected of them. Employees can be involved in setting standards. "t is important to note that communication is a two2 way street0 mere transference of information from the supervisor to the employees regarding expectations is not communication. o make communication effective, feedback is necessary from the subordinates to the manager. he next step in the appraisal process is the measurement of performance. o determine, what actual performance is, it is necessary to acquire information about it. ]BE should be concerned with how we measure and what we measure. <our common sources of information are frequently used by managers regarding how to measure actual performance0 personal observation, statistical reports, oral reports, and written reports. he fourth step is the comparison of actual performance with standards. he point of this step is to note deviations between standard performance and actual performance so that we can proceed to the fifth step in the process2 the discussion of the appraisal with the employees. ' necessary requirement of the appraisal process is employee feedback through an evaluation interview. Evaluation interviews are performance review sessions that give employees essential feedback about their past performance or future potential. :ithout feedback, improvement in human behavior is not likely and the ,- department will not have accurate records in its ,- information system on which to base decisions ranging from +ob design to compensation. he evaluator may provide this feedback through several approaches0 tell and sell, tell and listen, and problem solving. Managers must create a supportive environment to put employee at ease. 1resenting an accurate assessment to the employee is a challenging task. he discussion of the appraisal can have negative as well as positive motivational consequences.

53

he final step in the appraisal is the identification of corrective action where necessary. Aorrective actions can be of two types0 one is immediate and deals with symptoms, and the other is basic, which deals with causes. S 1racticeF'pplication in the bank0 here is some formal performance appraisal program in this organization. "n this organization one year frequently employees performance is evaluated. 'ppraisal by "mmediate boss evaluates employees performance. Essay 'ppraisal performance evaluation methods are used in this Drganization. "n this organization the appraisal serve Betterment both for the employees and the organization. ..1 Co"pen#ation Sy#te" Meaning'n organization exists to accomplish specific goals and ob+ectives. he individuals hired by the organization have their own needs. Dne is for money, which enables them to purchase a wide variety of goods and services available in the marketplace. ,ence there is a basis for an exchange0 he employee offers specific behaviors desired by the organization to meet its goals and ob+ectives in return for money, goods, andFor services. aken together, the money, goods, andFor serOvices the employer provides employees constitute the employer!s compensation system. he system that an organization uses to reward employees can play an imporOtant role in the organization!s efforts to gain a competitive advantage and to achieve its ma+or ob+ectives. Aompensation systems should do the following0 ; /ignal to employees Iand othersJ the ma+or ob+ectives of the organization such things as quality, customer focus, teamwork, and other goalsWby emphasizing these through compensation. ; ; ; 'ttract Encourage and retain to the develop talent the to skills an and organization abilities they perform needs. need. effectively. employees

Motivate

employees

; /upport the type of culture Ie.g., entrepreneurialJ the company seeks to engender. "deally, a reward system should align individual ob+ectives with important strategic goals of the organization, but for most organizations, the reality falls far short of Ihis ideal he design and implementation of a compensation system con2stitute one of the most complex activities for which human resource managers are responsible. he intricacy of compensation inspired the observation by one reOsearcher that Lreward systems are one of the most prominent and frequently disOcussed features of organizations.M& he

54

following

are

some

of

the

factors

that

conOtribute

to

this

complexity0

; :hile other aspects of human resource systems Ie.g., training, career man2agement, appraisal systems, and quality2of2work2life programsJ are important to some employees, compensation is considered crucial by virtually everyone. ; Dne goal of a compensation system is to motivate employees, yet there is tremendous variation in the value different individuals attach to a specific reward or package of rewards. ; <urther, an individual!s values also may change over time. he +obs in most organizations involve an almost endless variety of knowledge, skills

and abilities and are performed in situations with a wide range of demands. ; Aompensation systems consist of many elements in addition to pay for time workedG these components must be coordinated to work together. ; Employee compensation is a ma+or cost of doing businessWup to %6 percent for service firmsWand can determine the competitiveness of a firm!s products or services. ; ' number of federal in and the state regulations determination affect compensation of systems. ; Employees, either directly or through collective bargaining arrangements, may desire to participate ; compensation. he cost of living varies tremendously in different geographic areas, an important

consideration for firms with multiple locations..

/hare R
Related (u#ine## 2##ign"entDverall 1erformance Evaluation of *haka Bank ...

alent Management

1ersonal /:D 'nalysis

1erformance 'ppraisal "nterview

55

1erformance 'nalysis of 3amuna Bank (imited....

-eport on *ual Mode /olar ,ome /ystem...

(ogin -egister <orgotQ ?sername0 -emember me

(ogin

1assword0

Subject

'ccounting 'rchitecture 'rts Banking Biology Business Business Mathematic Business /tatistics Ahemistry Aomputer Economics EEE Engineering English Entrepreneurship *evelopment <inance @eography ,uman -esource Management "nternational Business (aw Management Marketing

56

Medical Meditation Modern Aivilization Drganizational Behavior Dther 1harmacy 1hysics 1olitical /cience /cience /ocial /cience /ociology /trategic Management extile =oology

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