Human Resource Management-Text

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3.1 HUMAN RESOURCE PLANNING

Human resource planning involves forecasting of human resource needs for the
organization and planning the steps necessary to meet these needs.
HR planning consists of developing and implementing plans and programs to ensure that the
right number and type of individuals are available at the right time and place to fulfil
organizational needs.
HR planning pursues for organization to have employees not only today but especially in the
future:
in the right number,
with needed knowledge, skills and abilities,
with desired personal characteristics,
motivated,
flexible and ready for changes,
optimally dislocated to the working position and teams,
at the right time,
with adequate costs.

3.1.1 Human Resource Planning Process
The steps in the HR planning process are shown in Figure 3.1. HR planning process begins
with considering the organizational objectives and strategies. HR planning process consists of
five steps: (1) Determining the impact of the organizations objectives and strategies on
specific organizational units. (2) Demand forecasting. (3) Supply forecasting. (4) Design
plans to coordinate supply and demand - forecast must be developed to identify the
relationship between supply and demand for human resources. (5) Formulate HR strategies
and plans.

Figure 3. 1 HR Planning Process

(Own processing)

Determining Organizationals Objectives and Strategies
Human resource plans must be based on organizational strategic plans. In practice, this means
the objectives of the human resource plan must be derived from organizational objectives.
Specific human resource requirements in terms of numbers and characteristics of employees
should be derived from the objectives of the entire organization.
Organizational objectives, which give the organization and its members direction and
purpose, should be stated in terms of expected results. The objective-setting process begins at
the top of the organization with a statement of mission, which defines the organizations
current and future business. Long-term objectives and strategies are formulated based on the
Organizational
Objectives and
Strategies
Demand
Forecasting and
Supply
Forecasting
Design Plans to
Coordinate
Supply and
Demand

Formulate HR
Startegies
and Plans

TRAINING AND DEVELOPMENT HUMAN RESOURCES

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organizations mission statement. These can then be used to establish short-term performance
objectives. Short-term performance objectives generally have a time schedule and are
expressed quantitatively. Divisional and departmental objectives are then derived from the
organizations short-term performance objectives. Establishing organizational, divisional, and
departmental objectives in this manner has been called the cascade approach to objective
setting.
The cascade approach is not a form of top-down planning, whereby objectives are passed
down to lower levels of the organization. The idea is to involve all levels of management in
the planning process. Such an approach leads to an upward and downward flow of
information during planning. This also ensure that the objectives are communicated and
coordinated through all levels of the organization.
When properly used, the cascade approach involves both operating and human resource
personnel in the overall planning process. During the early stages, human resource personnel
can influence objectives setting by providing information about the organizations human
resources. For example, if human resource personnel have identified particular strengths and
weaknesses in the organizations staff, this information can significantly influence the overall
direction of the organization (Byars, Rue, 2011).
Environmental Factors Affecting Human Resource Needs
Many factors in the organizations external environment may have an impact on the
organizations objectives and the human resources needed to realize those objectives. Some of
these factors include government influences (laws and regulations, general economic
conditions (recession or economic boom, interest rate and the level of unemployment rate),
the competition, and changes in the workforce. Competitive concerns relate primaly to the
emergence or departure of direct competitors as well as the emergence and departure of
businesses that compete for the same labor and other resources. Changes in workforce refer
not only to the workforce composition but also to its work habits. The impact of changes in
technology can vary from insignificant to devastating to extremely positive.

Demand Forecasting
It is process of estimating the future quantity an quality of people required. The basis of the
forecast must be annual budget and long-term corporate plan, translated into activity levels for
each function and department. In a manufacturing company, the sales budget would be
translated into a production plan giving the number and type of products to be produced in
each period. From this information, the number of hours to be worked by each skilled
category to make the quota for each period, would be computed. Once hours are available,
determining the quality and quantity of personnel will be the logical step.
Demand forecasting must consider several factors both external as well as internal. Among
the external factors are competition, economic climate, laws, changes in technology and social
factors. Internal factors include budget constraints, production levels, new products and
services, organizational structure and employee separations.
There are several good reasons to conduct demand forecasting. It can help: (1) quantify the
jobs necessary for producing a given number of goods, or offering a given amount of services;
(2) determine what staff-mix is desirable in the future; (3) assess appropriate staffing levels in
different parts of the organisation so as to avoid unnecessary costs; (4) prevent shortages of
people where and when they are needed most; (5) monitor compliance with legal
requirements with regard to reservation of jobs (Aswathappa, 2009).

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Forecasting Methods
The organizations future human resource needs can be forecasted using a variety of methods,
some simple and some complex. Regardless of the method used, forecasts represent
approximations and should not be viewed as absolutes.
Forecasting methods may be either intuitive or quantitative. Some common intuitive
methods are:
Subjective judgment - managers being to make judgements about future labour
requirements based on their knowledge and experience.
Delphi technique - is a systematic, interactive forecasting method which relies on a panel
of experts. The experts answer questionnaires in two or more rounds. After each round, a
facilitator provides an anonymous summary of the experts forecasts from the previous
round as well as the reasons they provided for their judgments. Thus, experts are
encouraged to revise their earlier answers in light of the replies of other members of their
panel. It is believed that during this process the range of the answers will decrease and the
group will converge towards the "correct" answer. Finally, the process is stopped after a
pre-defined stop criterion (e.g. number of rounds, achievement of consensus, stability of
results) and the mean or median scores of the final rounds determine the results.
Scenario writing - under this approach, the forecaster starts with different sets of
assumptions. For each set of assumptions, a likely scenario of the business outcome is
charted out. Thus, the forecaster would be able to generate many different future scenarios
(corresponding to the different sets of assumptions). The decision maker or businessperson
is presented with the different scenarios, and has to decide which scenario is most likely to
prevail.
Among the most commonly used quantitative methods include:
Extrapolation of trends - where the ratio product levels to labour employed has been
accurate in the past, projection based on such ratios can be used to indicate the amount of
labour required in the future to meet business goals.
Simulation - is the imitation of some real thing, state of affairs, or process.
Regression analysis is a Statistical Forecasting Model that is concerned with describing
and evaluating the relationship between a given variable and one or more other variables.
Regression analysis models are used to help us predict the value of one variable from one
or more other variables whose values can be predetermined.

Supply Forecasting
Personnel demand analysis provides the manager with the means of estimating the number
and kind of employees that will be required. The next logical step for the management is to
determine whether it will be able to procure the required number of personnel and the sources
for such procurement. This information is provided by supply forecasting. Supply forecasting
measures the number of people likely to be available from within and outside an organisation,
after making allowance for absenteeism, internal movements and promotions, wastage and
changes in hours, and other conditions of work.
Just as there are valid reasons why companies make demand forecast, there are enough
arguments for suplly forecast. In fact, fewer organizations estimate HR supplies than demand.
Reasons for supply forecast are that it: (1) helps quantify number of people and positions
expected to be available in future to help the organization realise its plans and meet its

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objectives; (2) helps clarify likely staff mixes that will exist in the future; (3) assess existing
staffing levels in different parts of the organization; (4) prevents shortage of people where and
when they are most needed; (5) monitors expected future compliance with legal requirements
of job reservations.
Forecasting of HR is based on:
Analysis of current HR in organization
Forecasting of departures of employees
Forecasting of changes at current HR because of promotion of employees
Forecasting of absenteeism
Resources of supply of internal HR
Resources of supply of external HR

Formulate HR strategies and plans
Specific strategies may be developed to fill vacancies or deal with surplus employees.
Specific HR plans are developed to provide more specific direction for the management of
HR activities. The most telling evidence of successful planning is a consistent alignment of
the availabilities and capabilities of human resources with the needs of the organization over a
period of time.

3.1.2 Human Resource Planning Responsibilities
In most organizations that do HR planning, the top HR executive and subordinate staff
specialists have most the responsibilities for this planning. However, as Figure 3.2 indicates,
other managers must provide information for the HR professionals to analyze. In turn, those
other managers need to receive data from the HR department. Because top managers are
responsible for overall strategic planning, they usually ask the HR department to project the
human resources needed to implement overall organizational goals (Mathis, Jackson, 2008).

Figure 3.2 Typical Division of HR Responsibilities: HR Planning
LINE MANAGERS HR PROFESSIONALS

Identify supply and demand needs for each
department

Participates in strategic planning process for entire
organization

Review/discuss HR planning information with HR
specialists

Identifies HR strategies

Integrate HR plan with departmental plans

Design data systems for HR planning

Monitor HR plan to identify changes needed

Compiles and analyzes data from managers on
staffing needs

Review employee succession plans associated with
HR plan

Implements HR plan as approved by top
management

(Mathis, Jackson, 2008, p. 46)


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3.2 JOB ANALYSIS, HUMAN RESOURCE PLANNING AND
RECRUITMENT
Figure 3.3 illustrates the relationships among job analysis, human resource planning,
recruitment and the selection process. Job analysis gives the nature and requirements of
specific jobs. Human resource planning determines the specific number of jobs to be filled.
Recruitment concerns providing a pool of people qualified to fill these vacancies. Questions
that the recruitment process addresses include: What are the sources of qualified personnel?
How are these qualified personnel to be recruited? Who is to be involved in the recruiting
process? What indicements does the organization have to attract qualified personnel? (Byars,
Rue, 2011).

Figure 3.3 Relationships among Job Analysis, Human Resource Planning, Recruitment
and Selection.

Nature and requirements Number of specific jobs
of specific jobs to be filled

Sources?
How are qualified candidates
To be recruited?
Recruiters? Inducements?
Pool of qualified applicant

(Byars, Rue, 2011, p. 113)

3.2.1 Job Analysis and Job Description
Job analysis represents a crucial stage in the recruitment and selection process because it
identifies the nature and scope of responsibilities expected of new recruits.
Job analysis is process of describing and recording the purpose of a job, its major duties and
activities, the conditions under which it is performed, and the necessary skills, knowledge and
abilities. The process of job analysis provides a basis and foundation for the job to be filled
and the outcomes of job analysis include job descriptions, accountability profiles and
employees specifications of requirements.
Job specification defines the experience, education, training and knowledge, skills, personal
characteristics and abilities needed to perform a job.
Job description specifies the major duties and responsibilities of a given job band se out the
tasks the jobholder is expected to perform. Job description varies in form and content but
generally specify: job title; department; pay grade; date, what the job was analyzed; name of
Job analysis Human ressource
planning
Job description
Recruitment
Selection

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job analyst; job characteristic and duties; working conditions; responsibilities; working place
equipment; superiority and subordination; relation to other job positions; job specification.

3.2.2 Methods of Collecting Job Data
There are four basic methods, which can be used separately or in combination, of collecting
job analysis data observation, interview, questionnaires, and diary method. In each of these
methods, the information about the job is collected and then the job is studied in terms of
tasks completed by the job incumbent (person presently working on the job). This type of job
analysis is referred to as job-oriented. On the other hand, a job can be analyzed in terms of
behaviour or what the job incumbent does to perform the job (such as computing, or
negotiating). This is referred to as work-oriented job analysis (Ivancevich, 2004).
Observation. Direct observation is used for jobs that require manual, standardized, and short-
jobcycle activities. Jobs performed by an automobile assembly-line worker, an insurance
company filing clerk, and an inventory stockroom employee are examples of these. The job
analyst must observe a representative sample of individuals performing these jobs.
Observation is usually not appropriate where the job involves significant mental activity, such
as the work of a research scientist, a lawyer, or a mathematician. The observation technique
requires that the job analyst be trained to observe relevant job behaviours. In conducting an
observation, the job analyst must remain as unobtrusive as possible. He or she must stay out
way so that the work can be performed. Better results will be available when the observation
method is used along with other method(s) of job analysis.
Interview. Interviewing job incumbents is often done in combination with observation.
Interviews are probably the technique used most widely in collecting data for job analysis.
They permit the job analyst to talk face to face with job incumbents. The job incumbent can
ask questions of the job analyst, and this interview serves as an opportunity for the analyst to
explain how the knowledge and information gained from the job analysis will be used.
Although interviews can yield useful job analysis information, an awareness of their potential
limitations is also needed. Interviews are difficult to standardize different interviewers may
ask different questions and the same interviewer might unintentionally ask different questions
of different respondents. There is also a real possibility that the information provided by the
respondent will be unintentionally distorted by the interviewer. Finally, the costs of
interviewing can be very high, especially if group interviews are not practical (Ivancevich,
2004).
Questionnaire. Job holders fill in the given structured questionnaire, which are then approved
by their supervisors. The filled-in questionnaires offer enough data on jobs. Standard
questionnaires are available or they may be prepared for the purpose by the analysts. Standard
or prepared questionnaires should contain the following basic information: (1) The job title of
the job holder. (2) The job title of the job holders manager or supervisor. (3) The job titles
and numbers of the staff reporting to the job holder. (4) A brief description of the overall role
or purpose of the job. (5) A list of the main tasks or duties that the job holder has to carry out;
as appropriate, these should specify the resources controlled, the equipment used, the
contracts made and the frequency with which the tasks are carried out.
Diary Method. This method requires the job holders to record in detail their activities each
day. If done faithfully, this technique is accurate and eliminates errors caused by memory
lapses the job holder makes while answering questionnaires and checklists. This method,
however, is time consuming because the recording of tasks may have to be spread over a
number of days. It also engages considerable time of a production worker.

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3.2.3 Uses of Job Analysis Information
The information produced by the job analysis is the basis for several interrelated HR
management activities:
HR Planning. To be effective, HR planning all must be based on job requirements and the
capabilities of individuals.
Recruitment and Selection. Job analysis provides information about what the job entails and
what human characteristics are required to carry out these activities. Such job description and
job specification information is used to decide what sort of people to recruit and hire.
Compensation. Job analysis information is also essentials for estimating the value and
appropriate compensation for each job. This is so because compensation usually depends on
the jobs required skill and education level, safety hazards, degree of responsibility, and so
on-all factors that are assessed through job analysis.
Performance Appraisal. A performance appraisal compares each employees actual
performance with his or her performance standards. It is often through job analysis that
experts determine the standards to be achieved and the specific activities to be performed.
Training. Job analysis information is also used for designing training and development
programs because the analysis and resulting job description show the skills-and therefore
training-that are required.
Ensure Complete Assignment of Duties. The job analysis is also useful for ensuring that all
the duties that have to be done are in fact assigned to particular positions.

3.2.4 Job Analysis Responsibilities
The process of conducting a thorough job analysis can involve many different people. HR
professionals almost always have the primary responsibility for overseeing the process, but
they cannot conduct an adequate analysis on their own. The people who work in a job and the
people who observe a job being done day in and day out are the experts when it comes to
describing that job, so their involvement in job analysis is essential. Figure 3.4 summarizes
the major ways that HR professionals, line managers, and other employees get involved in job
analysis.
Figure 3.4 Typical Division of HR Responsibilities: Job Analysis
LINE MANAGERS HR PROFESSIONALS EMPLOYEES
Complete or help complete job
analysis information.

Coordinates job analysis.

Help line managers recognize
when major changes in a job
indicate the need for job analysis
or reanalysis.
Review job descriptions and
specifications and maintain their
accuracy.

Ensure that job analysis
information is up-to-date and is
used as the foundation for the
organizations HRM system.
Provide accurate information for
job analysis.
Request new analysis as jobs
change.

Writes job description and
specifications for review by
managers.

Use job analysis results for
career planning and job choice
decisions.
Use job analysis information to
identify performance standards.
Periodically reviews job
descriptions and specifications.


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Provide information to outside
experts.

Reviews managerial input to
ensure accuracy.

May seek assistance from outside
experts for difficult or unusual
analyses.

Keep up-to-date on new
techniques and changing trends
in job analysis.

(Jackson, Schuler, Werner, 2009, p. 155, modified)

3.3 SYSTEMATIC APPROACH TO RECRUITMENT AND SELECTION
Recruitment involves seeking and attracting a pool of people from which qualified
candidates for job vacancies can be chosen. Most organizations have a recruitment function
managed by the human resource department. In an era when the focus of most organizations
has been on efficiently and effectively running the organization, recruiting the right person for
the job is a top priority.
Selection is process of choosing individuals with qualifications needed to fill jobs in an
organization. Figure 3.5 shows a systematic approach to recruitment and selection.

3.3.1 RECRUITMENT OF EMPLOYEES
Recruitment involves searching for and obtaining qualified applicants to consider when filling
job openings. Recruitment, however, stops short of deciding which individuals should be
hired from the pool of applicants. Recruitment represents the first contact that a company
makes with potential employees. It is through recruitment that many individuals will come to
know a company, and eventually decide whether they wish to work fot it. A well-planned and
well-managed recruiting effort will result in high-quality applicants, whereas, a haphazard and
piecemeal effort will result in mediocre ones. High-quality employees cannot be selected
when better candidates do not know of job openings, are not interested in working for the
company, and do not apply. The recruitment process should inform qualified individuals
about employment opportunities, create a positive image of the company, provide enough
information about the jobs so that applicants can make comparisons with their qualifications
and interests and generate enthusiasm among the best candidates so that they will apply for
the vacant positions.
Recruitment lends itself as a potential source of competitive advantage to a firm. An effective
approach to recruitment can help a company successfully compete for limited human
resources. The firm must choose a recruiting approach that produces the best pool of
candidates quickly and cost efectively. A recruiting programme helps the firm in at least four
ways: (1) Attract highly qualified and competent people. (2) Ensure, that the selected
candidates stay longer with the company. (3) Make sure, that there is match between cost and
benefit. (4) Help the firm create more culturally diverse work-force.


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Figure 3.5 A Systematic Approach to Recruitment and Selection

(Robinson, 2006, p. 158, modified)

The negative consequences of a poor recruitment process speaks volumes about its role in a
firm. The failure to generate an adequate number of reasonably qualified applicants can prove
costly in several ways. It can greatly complicate the selection process and may result in
lowering of selection standards. The poor quality of selection means extra cost on training and
supervision. Furthermore, when recruitment fails to meet organisational needs fo talent, a
typical response is to raise entry-level pay scales. This can distort traditional wage and salary
Legal and Ethical Framework
Human Ressource Planning
Job Analysis
Job Description and Specification of
Job Position

Create Recruitment and Selection
Strategy
Recruitment
- attracting potential applicants
Selection
- shortlist and evaluation of applicants
through appropriate selection methods
Making and justifying the selection
decision
Evaluating the effectiveness of the process

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relationships in the company, resulting in unavoidable consequences. Thus,the efectiveness of
the recruitment process can play a major role in determining the resources that must be
expended on other HR activities and their ultimate success (Aswathappa, 2009).
Recruitment strategy and policy decision entail identifying where to recruit, whom to
recruit, how to recruit, which costs and in what time-schedule. Sources of recruitment can be
broadly as internal and external. Most employers combine the use of internal and external
sources.
Internal recruitment is focused on the organizations internal labour market as a means of
filling vacancies. The most common internal recruiting methods include: organizational
databases, job postings, promotions and transfers, current-employee referrals and re-
recruiting of former employees.
Many external sources are available for recruiting. In this chapter are described the most
popular recruitment sources: school recruiting, recruitment agencies, headhunters,
advertisements, ppersonal recommendation and internet.
Both promoting from within the organization and hiring from outside the organization come
with advantages and disadvantages.

Advantages of internal recruitment:
Gives existing employees greater opportunity to advance their careers in the business.
May help to retain staff who might otherwise leave.
Requires a short induction training period.
Employer should know more about the internal candidate's abilities (= a reduced risk of
selecting an inappropriate candidate).
Usually quicker and less expensive than recruiting from outside.
Disadvantages of internal recruitment:
Limits the number of potential applicants for a job.
External candidates might be better suited / qualified for the job.
Another vacancy will be created that has to be filled.
Existing staff may feel they have the automatic right to be promoted, whether or not they
are competent.
Business may become resistant to change; by recruiting from outside, new perspectives
and attitudes are brought in.
Advantages of external recruitment:
Outside people bring in new ideas.
Larger pool of workers from which to find the best candidate.
People have a wider range of experience.
Disadvantages of external recruitment:
Longer process.
Selection process may not be effective enough to reveal the best candidate.
More expensive process due to advertisements and interviews required.


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External Sources
Organizations have at their disposal a wide range of external sources for recruiting personnel.
External recruiting is needed in organizations that are growing rapidly or have a large demand
for technical, skilled, or managerial employees. Methods for recruiting from the external labor
market include job advertisements, the use of recruitment agency, personal recommendation,
internet recruiting, school recruiting.
Job advertisements - advertisements are the most common form of external recruitment.
They can be found in many places (local and national newspapers, notice boards, recruitment
fairs) and should include some important information relating to the job (job title, pay
package, location, job description, how to apply-either by CV or application form). Where a
business chooses to advertise will depend on the cost of advertising and the coverage needed
(i.e. how far away people will consider applying for the job.
Recruitment agency - provides employers with details of suitable candidates for a vacancy
and can sometimes be referred to as head-hunters. They work for a fee and often specialise
in particular employment areas e.g. nursing, financial services, teacher recruitment. Head
hunting are recruitment agents who provide a more specialized approach to the recruitment of
key employees and/or senior management.
Personal recommendation - often referred to as word of mouth and can be a
recommendation from a colleague at work. A full assessment of the candidate is still needed
however but potentially it saves on advertising cost.
Internet recruiting the internet has become the primary means form many employers to
search for job candidates and for applicants to look for jobs. The explosive growth in general
Internet use a key reason. Internet users tap the internet to search for jobs almost as frequently
as they read classified ads in newspapers.
School recruiting high school or vocational schools may be valuable sources of new
employees for some organizations. Promotional brochures that acquaint students with starting
jobs and career opportunities can be distributed to counsellors, librarians, or others.
Participating in career days and giving company tours to school groups are other ways of
maintaining good contact with school sources.

3.3.1 Human Resource Recruiting Responsibilities
As you will see, recruiting can involve everyone in an organization. Several of the ways that
line managers, HR professionals, and other employees get involved in recruiting employees
are summarized in Figure 3.6.
HR professionals usually take the lead in designing a systematic and integrated approach to
recruiting employees. Human resource professionals also take responsibility for filling the
organizations staffing needs efficiently. The cost of Web-based recruiting software, time
spent at job fairs, salaries and benefits paid to recruiters, and/or fees paid to headhunters must
all be justified by recruitment results.


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Figure 3. 6 Typical Division of HR Responsibilities: HR Recruiting

Anticipace needs for employees to
fill vacancies

Forecast recruiting needs

Openly discuss your short-term
and long-term goals to facilitate the
development of recruiting plans
that address your concerns.
Assists in recruiting efforts with
information about job
requirements

Prepares copy for recruiting ads
and campaigns

When searching for work,
consider all aspects of the HRM
system before making a decision
about where to work.
Review success/failure of
recruiting activities

Plans and conduct recrtuiting
effords

Participate in recruiting efforts
such as referring others to the
company and answering questions
about what it is like to work there.

Audits and evaluates all
recruiting activities

Provide training as needed to line
managers and employees involved
in recruitment activities.

(Jackson, Schuler, Werner, 2009, p. 195, modified)

3.4 SELECTING OF EMPLOYEES
Once you have a pool of completed application forms, the next step is to select the best person
for the job. Selection is the process of choosing individuals with qualifications needed to fill
jobs in an organization.

3.4.1 Criteria, Predictors, and Job Performance
Regardless of whether an employer uses specific knowledge, skills and abilities (KSA) or a
more general approach, effective selection of employees involves using criteria and predictors
of job performance. At the heart of an effective selection system must be knowledge of what
constitutes appropriate job performance, as well as what employee characteristics are
associated with that performance. First, an employer needs to identify the criteria associated
with successful employee performance. A selection criterion is a characteristic that a person
must possess to successfully perform work. Ability, motivation, intelligence,
conscientiousness, appropriate risk and permanence might be good selection criteria for many
jobs. Factors that might be more specific to managerial jobs include leading and deciding,
organizing and executing and others.
To determine whether or not candidates might possess a certain selection criterion, employers
try to identify predictors that are measurable or visible indicators of that positive
characteristic. Three good predictors of performance might be individual interests, salary
requirements, and tenure on previous jobs.
Validity. In selection, validity is the correlation between a predictor and job performance.
Most validity decisions use a correlation coefficient, an index number that gives the
relationship between a predictor variable and criterion variable. Correlations always range
from -1.0 to +1.0 with higher scores suggesting stronger relationships.

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Reliability. Reliability of a predictor is the extent to which it repeatedly produces the same
results over time.
3.4.2 The Selection Process
Most organizations take a series of consistent steps to process and select applicants for jobs.
Selection can take place in a day or over a much longer period of time and certain phases of
the process may be omitted or the order changed, depending on the employer. Figure 3.7
shows a typical selection process.

Initial screening includes making certain that the applicant has the basic necessary
experience and background as well as determining if they possess the core traits and attitudes
you have found to be predictive of success in that job.

Orientation provides new employees with basic background information about the employer,
information they need to perform their jobs satisfactorily, such as what the work hours are.
More and more companies are finding that orientation can be used for other purposes, such as
familiarizing new employees with the companys cherished goals and values.
The first part of the orientation is usually performed by the HR specialist, who explains such
matters as organization structure of company, working hours, getting on the payroll, benefits
and vacation. The employee is then introduced to his or her new supervisor. The latter
continues the orientation by explaining the exact nature of the job, introducing the person to
his or her new colleagues, and familiarizing the new employee with the workplace.

Selection Methods
Evidence indicates that the complexity of work increases, companies use a combination of
different selection methods and use selection methods that capture the applicants capability
to do the work. We can use different methods to help select qualified employees.
The most used methods of selection are:
Selection Interview
Testing
Assessment center

Selection Interview
Face-to-face selection interviews allow an assessment to be made of the candidates
personality, ability and overall suitability for the job. The interview can take different forms
and can vary in design, structure and focus.

Types of selection interviews:

Individual interview - as the name implies two people meet alone and one interviews the
other by seeking oral responses to oral inquiries (applicant+head of department or manager
or personnel clerk).
Panel interview an interview in which a group of interviewers questions the applicant.
The group structure has several advantages. A sequential interview often has candidates
cover basically the same ground over and over again with each interviewer.


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Figure 3.7 Typical Selection Process

(Own processing)

Team interview in a team interview, applicants are interviewed by the team members
with whom they will work.
Sequential interview an interview in which the applicant is interviewed sequentially by
several persons and each rates the applicant on a standard form.
Structured interview questions are prepared in advance, all the applicants are asked the
same questions in the same order.
Unstructured interview (free-running) involves little preparation.
A Pool of Qualified Candidates
Initial Screening
The First Round of Selection
- combination of selection methods (tests,
interview, work demonstration)

The Second Round of Selection
- additional interview, assessment centre
A Smaller Pool of Qualified
Candidates

A Smaller Pool of Qualified
Candidates

New Employees

Orientation


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Semistructured interview part of interview is structured and part of interview is
unstructured, both parts are concurred.
Behavioural interview - applicant are asked to describe how they have performed a certain
task or handled a problem in the past, which ideally predicts future actions and shows how
applicants are best suited for current jobs.
Biographical interview - focuses on a chronological assessment of the candidates past
experiences.
Situational interview contains questions about how applicants might handle specific job
situations.
Stress interview is designed to create anxiety and put pressure on applicants to see how
they respond.

Common Interviewing Mistakes

There are several common interviewing mistakes that undermine an interviews usefulness.
Several problems include:
Snap judgments - interviewers tend to jump to conclusion, make snap judgments, about
candidates during the first few minutes of the interview and spend the rest of the time
looking for evidence to support their judgment.
Negative emphasis unfavourable information about an applicant is often emphasized
more than favourable information when evaluating suitability.
Poor knowledge of the job interviewers who dont know precisely what the job entails
and what sort of candidate is best suited for it usually make their decision based on
incorrect stereotypes about what a good applicant is.
Biases and stereotyping - Similarity bias occur when interviewers favour or select people
that they believe to be like themselves based on a variety of personal factors. Interviewers
should avoid any personal tendencies stereotype individuals because of demographic
characteristic and differences.
Cultural noise - interviewers must learn to recognize and handle cultural noise, which
stems from what applicants believe is socially acceptable rather than what is factual.

Effective Interviewing
Many people think that ability to interview is an innate talent, but this contention is difficult
to support. Just being personable and liking to talk is no guarantee that someone will be an
effective interviewer. Interviewing skills are develop through training. A number of
suggestions for making interviewing more effective are as follows:

Plan the interview. Interviewers should review all information before the interview, and
then identify specific areas for questioning.
Control the interview. This includes knowing in advance what information must be
collected, systematically collecting it during the interview, and stopping when that
information has been collected.
Use effective questioning techniques. Utilize questions that will produce full and
complete answers that can be evaluated based on job relatedness.


17
Selection Testing
Many different kinds of tests can be used to help select qualified employees. Selection tests
must be evaluated extensively before being utilized as a recruiting tool. The development of
the test items should be linked to a thorough job analysis. Also, initial testing of the items
should include an evaluation by knowledge experts, and statistical and validity assessments of
the items should be conducted. Furthermore, adequate security of testing instruments should
be coordinated, and the monetary value of these tests to the firm should be determined.

Ability Tests
Work Sample tests - work sample tests are based on the premise that the best predictor of
future behaviour is observed behaviour under similar situations. These tests require the
examinee to perform tasks that are similar to those that are performed on the job.
Physical ability tests tests that measure an individuals abilities such as strength,
endurance and muscular movement.
Psychomotor tests tests that measure dexterity, hand-eye coordination, arm-hand
steadiness and other factors.

Cognitive ability tests tests that measure an individuals thinking, memory, reasoning,
verbal and mathematical abilities.

Personality Tests
Personality tests are used to determine your type of personality, your values, interests and
your skills. They can be used to simply assess what type of person you are or, more
specifically, to determine your aptitude for a certain type of occupation or career.

Intelligence Tests
Intelligence tests measure your intellectual functioning, or in plain language, how smart you
are. They are designed to measure an individual's mental skills.

Assessment Centre
An assessment centre is usually an all day event (or longer) which forms part of the latter
stages of a company's recruitment procedure. Employers want to find out how you perform in
different situations and devise activities to test you in various ways. Assessment centre
involve a number of candidates being put through a variety of tests and assessments designed
to measure specific competencies whilst being observed by trained assessors. Assessment
centres thus use a variety of selection techniques and different measures which enable
assessors to observe candidates in a variety of different situations and make an overall
assessment.

What can I expect to happen at an assessment centre?
Various activities - but you are unlikely to face everything listed here at one assessment
centre:
Second interview - a second interview will focus on any doubts or weaknesses that were
raised in the first interview.
Aptitude or psychometric tests - many employers run verbal and numerical reasoning
tests - these are held under strict exam conditions. Practise in advance, declare any

18
disability (including dyslexia) and mention if English is not your first language before the
test begins. Diagrammatic reasoning tests are used mainly in computing posts.
Group exercises - these may be practical discussion based or physical activities.
Presentation - You may be notified of a topic in advance or given a subject during the
assessment centre. Remember that the style of your presentation is as important as the
content.
Group discussion - You may be asked to discuss issues of current importance to the
profession or sector or current news items. Prepare by keeping up to date with the news
and researching the sector, other organisations within that sector etc.

3.4.3 Human Resource Selecting Responsibilities
Selection is a key responsibility for all managers and supervisors in a company. However,
organizations vary in how they allocate selection responsibilities between HR professionals
and line managers. The typical selection responsibilities are shown in Figure 3.8.

Figure 3. 8 Typical Division of HR Responsibilities: Selection

Requisition employees with
specific qualifications to fill jobs

Provides initial reception for
applicants

May participate as applicants for
internal transfers, promotions, and
other opportunities
Participate in selection process
as appropriate

Conducts initial screening
interview

May interview candidates to
work in the team or work unit
Interview final candidates Administers appropriate
employment tests

May be involved in selecting new
coworkers
Make final selection
decision,subject to advice of HR
specialist

Obtains background and
reference
Information and sets up a
physical
examination, if used

Attend training programs for
employees involved in selection
processes
Provide follow-up information on
the suitability of selected
individuals

Refers top candidates to managers
for final selection

Evaluates success of selection
process

(Mathis, Jackson, 2008, p. 230; Jackson, Schuler, Werner, 2009, p. 195)


19
3.5 RECRUITING AND SELECTING EVALUATION AND METRICS
To determine how effective various recruiting sources and selecting methods have
been it is important to evaluate recruiting and selecting efforts. Although various areas can be
measured when trying to analyze recruiting and selecting effectiveness; five specific areas
that usually need to be considered include:
Quantity of applicants the basic measure here considers whether the quantity of recruits
is sufficient to fill job vacancies.
Quality of applicants measures that can be used include items such as performance
appraisal scores, months until promotion, output, and sales volume for each hire.
Time available for filling empty positions
Cost per recruit and select recruiting and selecting expense/number of recruits hired.
Satisfaction of parties involved

General Recruiting and Selecting Process Metrics
Yield Ratios comparisons of the number of applicants at one stage of the recruiting
process with the number at the next stage as Figure 3.9 depicts.
Selection rate percentage hired from a given group of candidates.
Success Base Rate can be determined by comparing the number of past applicants who
have become successful employees against the number of applicants they competed against
for their jobs, using historical data within the organization. Also, the success base rate can
be compare with the success rates of other employers in the area or industry using
benchmarking data (Mathis, Jackson, 2008).

Figure 3. 9 Sample Recruiting and Selecting Evaluation Pyramid


Total initial contacts = 100
Formal applicants = 30
Final interviewees = 15
Offer recipients = 10
Hires = 5
Yield ratio=50%
Yield ratio=66%
Yield ratio=15%
Selection rate=5%

20

4.1 TRAINING AND ORGANIZATIONAL STRATEGY
Strategic training is linked to how the organization accomplishes its organizational goals. It
can have numerous organizational benefits. First, strategic training enables HR and training
professionals to get intimately involved with the business, partner with operating managers to
help solve their problems, and make significant contributions to organizational results.
Additionally a strategic training mind-set reduces the likelihood of thinking that training alone
can solve most employee or organizational problems (Mathis, Jackson, 2008).

The HR Strategy defines the background for all HR activities with the value added. The HR
Training Program has to be definitely connected closely with the HR Strategy as the HR team
cannot be trained in different skills and competencies, which are requested by the HR
Strategy.

The design of the HR Training Program is difficult and unique for each organization as it has
to be tightly connected with the HR Strategy and it has to use the language of the company as
the employees understand the main messages the same way.

Training and development strategy is a vision, focus, direction and action planning
document for training and development in an organization that requires implementation to
achieve success. It is a blueprint that needs to support the optimization of the human resource
capital in the organization. It is essential that the training strategy is aligned to the
organization's strategy and enables its vision to be realized.

4.1.1 Defining the Terminology
A question frequently raised by examiners is what is the difference, if any, between training
and development? Another question which is sometimes asked is what is the difference
between education and training? We can thus compare the core meanings of each of these
concepts, as follows:
Education this is usually intended to mean basic instruction in knowledge and skills
designed to enable people to make the most of life in general: it is personal and broadly based.
Learning this is the process of acquiring knowledge, understanding, skills and values in
order to be able to adapt to our environment: it underpins all of the above three: the amount,
quality and rate of take-up of learning depends mainly on (a) the innate intelligence and
motivation of the learner, (b) the skills of the teacher, and (c) the conditions in which the
learning takes place (Cole, 2004).
Training - gives new or present employees the skills they need to perform their jobs. Training
can be designed to meet a number of objectives and can be classified in various ways. Figure
4.1 indicates common areas of training.

Development - is focused on acquiring of wider range of knowledge and skills, which
employee does not need for his/her current job. Development is more oriented on employees
career and forms rather potential of employees than his/her qualification.


21

Figure 4.1 Areas of Training

(Koubek, 2007, p. 255, modified)

4.2 SYSTEMATIC TRAINING AND DEVELOPMENT PROCESS
We can think of a typical training or development program as consisting of four steps, as
summarized in Figure 4.2. Using such a process reduces the likelihood that unplanned,
uncoordinated and haphazard training efforts will occur. The purpose of the identification
and analysis of needs step is to identify the specific job performance skills needed, to
analyze the skills and needs of the prospective trainees and to develop specific, measurable
knowledge and performance objectives. In the second, training design step, the actual
content of the training program is compiled and produced including workbooks, exercises and
activities. Fourth, the training plan is implemented - preparation of training programs, choice
of trainers, negotiation of terms and conditions, conclusion of a contract, organizational
provision, preparation of participants (organizational information, meeting with trainers).
Fifth, there should be an evaluation and follow-up step in which the programs successes or
failures are assessed.

TRAINING
Orientation:
efficient adaptation of employee

Deepening of qualification:
continuation of vocational training in
field in which employee works.

Retraining:
acquisition (obtaining) of new
knowledge and skills enabling
employee to work on another
position.

Vocational rehabilitation:
task: re-subsumption of people who
couldnt perform present job because
of health.


22

Figure 4.2 Systematic Training and Development Process

(Cole, 2004, p. 351, modified)

The benefits of systematic training and development process include:
The provision of a pool of skilled personnel for the organization,
The improvement of existing skills,
An increase in the knowledge and experience of employees,
Improvements in job performance with resulting improvement in productivity overall,
Improved service to customers,
Greater commitment of staff,
Increased value of individual employees knowledge and skills, and
Personal growth opportunities for employees (Cole, 2004).

4.2.1 Identification and analysis of needs

The first step in training needs assessment is analyzing what training is needed. We should
analyse 3 groups of dates:
a) dates relevant to organization (structure of organization, production schedule,
absenteeism)
b) dates relevant to particular job positions (description of job position and specification of
job position),
c) dates about employees (staff appraisals, records about education and qualification, results
of tests).
Identification and
analysis of needs

Implementation of the
training plan

Evaluation

Training Design
Business strategy


23

Organizational Analyses. Training needs can be diagnosed by analyzing organizational
outcomes and looking at future organizational needs. A part of planning for training is the
identification of the knowledge, skills and abilities that will be needed now and in the future
as both jobs and the organization change.

Job/Task Analyses. The second way of doing training analysis is to review the jobs involved
and the tasks performed in those jobs. By comparing the requirements of jobs with the
knowledge, skills and abilities of employees, training needs can be identified. Current job
specifications can be a source for such an analysis.

Individual Analyses. The third means of diagnosing training needs focuses on individuals
and how they perform their jobs. The following sources are examples that are useful for
individual analyses:
performance appraisals,
skill tests,
individual assessment tests,
records of critical incidents,
questionnaires,
job knowledge tools.

The most common approach for making these individual analyses is to use performance
appraisal data. To assess training needs through the performance appraisal process, the
organization first determines an employees performance strengths and inadequacies in a
formal review. Then, it can design some type of training to help the employee overcome the
weaknesses and enhance the strengths. A training needs survey can take the form of
questionnaires or interviews with immediate supervisors and employees individually or in
groups (Mathis, Jackson, 2008).

Setting Training Objectives
After training needs have been analyzed, concrete, measurable training objectives should be
set. Objectives specify what the trainee should be able to accomplish after successfully
completing the training program. They thus provide a focus for the efforts of both the trainee
and the trainer and a benchmark for evaluating the success of the training program.

4.2.2 Training Design
Once training objectives have been determined training design can start. Whether job specific
or broader in nature, training must be designed to address the assessed specific needs.
Effective training design considers learning concepts and a wide range of different approaches
to training.


24

Training plan
We have to know answers to these questions 8W:

1. What content? Task and content of training?
2. Who to? Who should be trained?
3. Which way? What kinds of methods?
4. Who delivers? Who will be trained?
5. When and how long?
6. Where?
7. What price? Training cost?
8. Was it effective?

HRs Role in Succession Planning
Often HR has the primary responsibility for succession planning organization-wide. However,
for Chief executive officers and senior management succession efforts, top executives and
board members often have major involvement. Because of this, HR often performs the
following actions:
Identifying development needs of the workforce.
Assisting executives/managers in identifying needed job skills.
Participating in noting employees who might fill future positions.
Communicating succession planning process to employees.
Aiding in tracing and regularly updating succession plan efforts.

Methods of the training
Regardless of the type of training done, a number of approaches and methods can be used to
deliver it.

On-The-Job Training
The most common type of training at all levels in an organization is on-the-job training (OJT)
because it is flexible and relevant to what employees do. Well-planned and well executed OJT
can be very effective. Based on a guided form of training known as job instruction training,
on-the-job training is most effective if a logical progression of stages is used, as shown in
Figure 4.3.

The most common methods of on the job training are:
Demonstration / instruction - showing the trainee how to do the job.
Coaching.
Mentoring.
Job rotation - where the trainee is given several jobs in succession, to gain experience of a
wide range of activities (e.g. a graduate management trainee might spend periods in several
different departments).

25

Figure 4.3 Stages for On-the-Job Training (OJT)


Projects - employees join a project team - which gives them exposure to other parts of the
business and allow them to take part in new activities. Most successful project teams are
"multi-disciplinary".
Assistant- To Positions. Some companies create assistant-to positions, which are staff
positions immediately under a manager. Through such a jobs trainees can work with
outstanding managers they might not otherwise have met.
Coaching - developing a persons skills and knowledge so that their job performance
improves, hopefully leading to the achievement of organisational objectives. It targets high
performance and improvement at work, although it may also have an impact on an
individuals private life. It usually lasts for a short period and focuses on specific skills and
goals.

Although there is a lack of agreement among coaching professionals about precise definitions,
these are some generally agreed characteristics of coaching in organisations:
It is essentially a non-directive form of development.
It focuses on improving performance and developing individuals skills.
Personal issues may be discussed but the emphasis is on performance at work.
Coaching activities have both organisational and individual goals.
It assumes that the individual is psychologically well and does not require a clinical
intervention.
It provides people with feedback on both their strengths and their weaknesses.
It is a skilled activity which should be delivered by trained people.
Mentoring is a technique for allowing the transmission of knowledge, skills and experience
in a supportive and challenging environment much like coaching. The same skills of
Prepare the
Trainees
Present the
Information
Have the
Trainees
Practice
Do Follow-Up
Put the
trainees on
theinr own
Check
frequently
Reduce
follow-up as
performance
improves

Have the
trainees
perform the
tasks
Ask questions
Observe and
correct
Evaluate
mastery

Tell, show,
question
Present one
point at a
time
Make sure
the trainees
know

Put them at
ease
Find out what
they know
Get them
interested


26
questioning, listening, clarifying, reframing and many of the same models are used. However,
mentoring relationships can be much more long term, for example in a succession planning
scenario a regional finance director might be mentored by a group level counterpart where
they might learn the basics of dealing with the boardroom, presenting to analysts, challenging
departmental budgets, etc all in a supportive environment. Mentoring relationships work best
when they move beyond the directive approach of a senior colleague telling it how it is, to one
where both learn from each other. An effective mentoring relationship is a learning
opportunity for both parties.
Advantages of on the job training
Generally more cost effective.
Less disruptive to the business - i.e. employees are not away from work.
Training an employee in their own working environment, with equipment they are familiar
with and people they know can help they gain direct experience to a standard approved by
the employer.
Employees may find that they have more confidence if they are supervised and guided as
they feel they are doing the job right.
Employees may feel more at ease being taught or supervised by people they know rather
than complete strangers at an external training course.
Managers or supervisors can assess improvement and progress over a period of time and
this makes it easier to identify a problem intervene and resolve problems quickly.
On the job training is also productive, as the employee is still working as they are learning.
As training progresses and the employee begins to feel more confident, this confidence
would allow them to work at a higher standard and ultimately be more productive.
Training "on-the-job" provides an opportunity to get to know staff they might not normally
talk to.
Disadvantages of on the job training
Teaching or coaching is a specialist skill in itself; unless the trainer has the skills and
knowledge to train, this would mean that the training will not be done to a sufficient
standard.
The trainer may not be given the time to spend with the employee to teach them properly,
which would mean substandard training has been achieved and learning has only been half
done.
The trainer may possess bad habits and pass these on to the trainee.
Off- The-Job Training
This is training provided away from the employees usual work environment and the
employee will stop their usual duties/work during the training. Off the job training may be in
the same building or off site. The most common methods of on the job training are: lecture,
demonstration, case studies, role play, team building and development centre.

Lecture. It is one of the oldest methods of training. This method is used to create
understanding of a topic or to influence behaviour, attitudes through lecture. A lecture can be
in printed or oral form. Lecture is telling someone about something. Lecture is given to
enhance the knowledge of listener or to give him the theoretical aspect of a topic.

Demonstration. This method is a visual display of how something works or how to do
something. As an example, trainer shows the trainees how to perform or how to do the tasks

27
of the job. In order to be more effective, demonstration method should be accompanied by the
discussion or lecture method.
Case Studies try to simulate decision making situation that trainees may find at their work
place. It reflects the situations and complex problems faced by managers, staff, HR, etc. The
objective of the case study method is to get trainees to apply known concepts and ideologies
and ascertain new ones. The case study method emphasize on approach to see a particular
problem rather than a solution. Their solutions are not as important as the understanding of
advantages and disadvantages (Koubek, 2007).

Role play is a simulation in which each participant is given a role to play. Trainees are given
with some information related to description of the role, concerns, objectives, responsibilities,
emotions, etc. Then, a general description of the situation, and the problem that each one of
them faces, is given. For instance, situation could be strike in factory, managing conflict, two
parties in conflict, scheduling vacation days, etc. Once the participants read their role
descriptions, they act out their roles by interacting with one another.

Role Plays helps in:
developing interpersonal skills and communication skills,
conflict resolution,
group decision making,
developing insight into ones own behaviour and its impact on others.
Team building in any organisation is all about the progression in improving the combined
performance level of a group of people who work together towards a common purpose. Team
building can be defined as a process that makes the accomplishment of a common objective
possible for any given group of people. It is a facilitating process that allows them to focus
and concentrate on the procedures that will allow them to achieve their goal in the fastest and
most efficient way possible. It quite simply starts off with a group and ends up with a team.
Most companies prefer to organize training programs for their employees at places that are
away from the city. This is because they feel their employees require a getaway from the
monotonous routine of day-to-day office functioning (Dessler, 1997).
Development centre. Development centres are collections of instruments and exercises
designed to diagnose individuals development needs. In a typical development centre
experience, an individual spends two or three days away from the job performing many
development activities. These activities might include role-playing, tests, leaderless-group
discussions, computer-based simulations and peer evaluations. Frequently, they also include
in-basket exercises, in which the individual handles typical work and management problems.
For the most part, the exercises represent situations that require the use of individual skills
and behaviours.
Advantages of off-the-job training:
Use of specialist trainers and accommodation.
Employee can focus on the training - and not be distracted by work.
Opportunity to mix with employees from other businesses.
Disadvantages of off-the-job training:
May not be directly relevant to the employee's job.

28
Costs (transport, course fees, examination fees, materials, accommodation).
Other methods of training and development
These methods can be used both on the job and off the job:
Trainee programs these programs are particularly established for students or graduates.
Task: to prepare them for profession, to identify individual strengths/weaknesses. They
perform various duties, they work at projects..
E-learning use of the internet or an organizational intranet to conduct training on-line.

E Learning: On-Line Training
E.-learning is growing in popularity with employers. The major advantages are cost savings
and access to more employees. But e-learning has both advantages and disadvantages that
must be considered. In addition to being concerned about employee access to e-learning and
desire to use it, some employers worry that trainees will use e-learning to complete courses
quickly but will not retain and use much of what they learned. Figure 4.4 presents a listing of
e-learnings most commonly cited advantages and disadvantages (Mathis, Jackson , 2008).

Figure 4.4 Advantages and Disadvantages of E-Learning


4.2.3 Implementation of the training plan
This phase included these activities:
Preparation of training programs, choice of trainers.
Negotiation of terms and conditions, conclusion of a contract.
Organizational provision.
Preparation of participants organizational information, meeting with trainers.

Advantages Disadvantages
Is self-paced; trainees can proceed on
their own time
Is interactive, tapping multiple trainee
senses
Enables scoring of
exercises/assessments and the
appropriate feedback
Incorporates built-in guidance and
help for trainees to use when needed
Allows trainers to update content
relatively easily
Can enhance instructor-led training
Is good for presenting simple facts and
concepts
May cause trainee anxiety
Some trainees may not be interested
in how it is used
Requires easy and uninterrupted
access to computers
Is not appropriate for some training
Requires significant up-front
investment, both time and cost-wise
Requires significant support from top
management to be successful

29

Selecting Human Resource Development Methods
When a person is working on a car, some tools are more helpful in doing certain tasks than
others. The same logic applies when considering various HRD methods. Note the diverse
methods shown in Figure 4.5. Some methods apply strictly to managers and middle-level
professionals, others to operative employees, and several are used in the training and
development of both managers and operative employees.

Figure 4.5 Human Resource Development Methods
Utilized for Conducted
Methods Managers
and Middle-
Level
Professionals
Operative
Employees
Both On the
Job
Off-the
Job
Coaching/Mentoring x x
Case study x x
Role playing x x
Job rotation x x
Demonstration x x
Instruction x x
Projects x x
Assistant to
positions
x x
Lecture x x
Team Building x x
Development Centre x x
E-learning x x

(Mondy, Noe, 1996, p. 243, modified)
4.2.4 Training Evaluation
Knowing there is a definitive need to measure the impacts of a large corporate cost like
learning it is fitting to have an industry acceptable model for doing so. This model is actually
one that has been in existence since the 1950s but continues to be accepted today using
technology and creativity to maximize its benefits for the modern corporation. Donald L.
Kirkpatrick identifies four levels at which training can be evaluated. Level Five is not a
Kirkpatrick step. Kirkpatrick alluded to ROI when he created level four linking training
results to business results. However, over time the need to measure the dollar value impact of
training became so important to organizations that a fifth level was added by Dr. Phillips, as
Figure 4.6 indicates.

Reaction.
Level one is a satisfaction survey. Per Kirkpatrick, evaluating reaction is the same thing as
measuring customer satisfaction. If training is going to be effective, it is important that
students react favourably to it. The instruments for conducting level one, valuations are
verbal reaction and questionnaires.

30

Figure 4.6 Levels of Training Evaluation

(Robinson, 2006, p. 209, modified)

The guidelines for level one are as follows:
Determine what you want to find out.
Design a form that will quantify the reactions.
Encourage written comments and suggestions.
Strive for 100% immediate response.
Get honest responses.
Develop acceptable standards/ benchmarks.
Measure reactions against standards, and recommend appropriate action.
Communicate reactions and actions as appropriate.

The benefits to conducting level one evaluation are:
A proxy for customer satisfaction.
Immediate and real-time feedback on an investment.
A mechanism to measure and manage learning providers, instructors, courses, locations,
and learning methodologies.
A way to control costs and strategically spend your budget dollars.
If done properly, a way to gauge a perceived return on learning investment.
Learning.
Level two is a test to determine if the learning transfer occurred. States Kirkpatrick, It is
important to measure learning because no change in behaviour can be expected unless one or
Reaction
Did the participants like the training?
Learning
What knowledge, skills or attitudes changed after training? By
how much?
Behaviour
Did the participants change their behavior on the job
based on what they learned?
Result
Did the change behavior positively affect the
organization?
Investment Return - ROI
What the training worth the
cost?


31
more of these learning objectives have been accomplished. Measuring learning means
determining one or more of the following:
What knowledge was learned?
What skills were developed or improved?
What attitudes were changed?

The guidelines for level two are as follows:
Use a control group, if practical.
Evaluate knowledge, skills, and or attitudes both before and after the program.
Use a test to measure knowledge and attitudes.
Strive for 100% response.
Use the results to take corrective actions.

The benefits to conducting level two evaluations are:
Learner demonstrates the transfer of learning.
Provides training managers with more conclusive evidence of training effectiveness.

The instruments for conducting level two valuations are:
Typically assessments or tests before and after the training.
Interview or observation.
Behaviour.
Level three evaluates the job impact of training. What happens when trainees leave the
classroom and return to their jobs? How much transfer of knowledge, skill, and attitudes
occurs? Kirkpatrick questions, In other words, what change in job behaviour occurred
because people attended a training program?

The guidelines for level three are as follows:
Allow time for behaviour change to take place.
Evaluate both before and after the program if practical.
Survey or interview trainees, supervisors, subordinates and others who observe their
behaviour.
Strive for 100% response.
Repeat the evaluation at appropriate times.
The benefits to conducting level three evaluations are:
An indication of the time to job impact.
An indication of the types of job impacts occurring (cost, quality, time, productivity).


32
The instruments for conducting level three valuations are:
Observation and interview over time to assess change, relevance of change, and
sustainability of change.

Result.
According to Kirkpatrick, level four is the most important step and perhaps the most difficult
of all. Level four attempts to look at the business results that accrued because of the training.
The guidelines for level four are as follows:
Use a control group if practical.
Allow time for results to be achieved.
Measure both before and after the program, if practical.
Repeat the measurement at appropriate time.
Consider costs versus benefits.
Be satisfied with evidence if proof not possible.

The benefits to conducting level four evaluations are:
Determine bottom line impact of training.
Tie business objectives and goals to training.

The instruments for conducting level four valuations are:
Measures to be in place via normal management systems and reportingchallenge is to
relate to the trainee.

Training Evaluation Metrics - Return on Investment ROI.
Level five is not a Kirkpatrick step. Kirkpatrick alluded to ROI when he created level
four linking training results to business results. However, over time the need to measure the
dollar value impact of training became so important to organizations that a fifth level was
added by Dr. Phillips.

The guidelines for level five are as follows:
Allow time for results to be achieved.
Determine the direct costs of the training.
Measure a productivity or performance before the training.
Measure productivity or performance after the training.
Measure the productivity or performance increase.
Translate the increase into a dollar value benefit.
Subtract the dollar value benefit from the cost of training.
Calculate the ROI.


33
4.3.3 Human Resource Training and Development Responsibilities
Training and developmet activities can be very expensive, requiring both time and money.
Much of the expense is due to employees taking time off from work to participate. So perhaps
the most important role of top-level executives is recognizing the value of training
investments and supporting such activities. As organizations begin to embrace a philosophy
of continuous learning and improvement, more active participation in the design and delivery
of the organizations training system by all stakeholders is seen as both desirable and
necessary.
Figure 4.11 shows how the responsibilities for ay familiar activity-training and development-
might be divided among the HR professionals, line managers and employees in an
organization.

Figure 4.11 Typical Division of HR Responsibilities: Training and Development

Provide technical information

Prepares skill-training materials

Seek to understand the objectives
of training and development
opportunities, and accept
responsibility for lifelong learning
Monitor training needs

Coordinates training efforts

Identify your own training and
development needs with HR
professionals and line managers
Conduct and monitor continuing
on-the-job training

Conducts or arranges for off-the-
job training

Consider employment
opportunities that will contribute to
own personal development and
long-term employability
Continually discuss
employeesgrowth

Coordinates career plans

Actively participate in training
and development opportunities
Participate in organizational
change

Provides input and expertise for
organizational development

Assist with the socialization,
training, and development of
coworkers
Participate in efforts to assess the
effectiveness of training and
development activities
Evaluate the effectiveness of
training and development
activities
Participate in efforts to assess the
effectiveness of training and
development activities
Train and coach the line managers
and employees in how to socialize;
train and develop employees

(Mathis, Jackson, 2008, p. 10; Jackson, Schuler, Werner, 2009, p. 195)


34
5.1 PERFORMANCE MANAGEMENT
Performance management system design is one of the key methods HR management uses to
contribute to organizational performance.
Performance management should originate with what the organization needs to accomplish to
meet its strategic objectives. Performance management is a series of activities designed to
ensure that the organization gets the performance it needs from its employees. As Figure 5.1
shows, performance management links strategy to results. Performance appraisal is the
process of determining how well employees do their job relative to a standard and
communicating that information to the employee (Mathis, Jackson, 2008).

Figure 5.1 Performance Management Linkage


Organizational Strategies
Performance Management
Identify expected performance levels
Encourage high levels of performance
Measure individual performance, then evaluace
Provide feedback on individual performance
Provide assistance as needed
Reward or discipline depending on performance
Employee Performance
Performance Management Outcomes
Pay increases
Incentive rewards
Promotions/advancement
Training and development
Career planning
Disciplinary actions
Organizational Results
Goals met or not met
Employee satisfaction or dissatisfaction strong or teak
Coordination between performance and pay

35
An effective performance management system should do the following:
Make clear what the organization expects.
Provide performance information to employees.
Identify areas of success and needed development.
Document performance for personnel records.

5.1.1 Aims of Employees Appraisal
There are several reasons to appraise performance:
Appraisal provides feedback information about employees performance, what are their
working outcomes to managers of organization and employees and how superiors look
upon their work.
Appraisal provide information upon which promotion and salary decisions can be made.
Appraisals can benefit both employers and employees by improving job performance, by
making it easier to identify strengths and weaknesses and by determining suitability for
development.
Appraisal gives information about employees potential and future needs.
Appraisal identifies training and development needs and career plans.

Employees Appraisal has two forms:
Informal continuous employee appraisal during his performance, it is part of everyday
relationship between superior and subordinate.
Purpose to give feedback to emloyees immediately after performance because employees
know what they do well and what they do bad. And how to work without making mistakes
in the future.
Formal (Periodical) is focused on appraisal and documentation of employee performance
in former times, setting of future objectives, determination of the main trainnig and
development needs, support their motivation, make of carrer plans and to determine reward.

Decision About the Performance Appraisal Process
To develop an appraisal system we must decide about these things:
1. What to evaluate?
2. When to conduct appraisals?
Most companies require managers to conduct appraisals once or twice a year, most often
annually. Employees commonly receive an appraisal 60 days after hiring, again at six
months and annually thereafter.
3. Who should appraise employees?
4. Which methods can be used for appraising performance?
5. What are responsibilities of the HR department and of the operating managers?


36
5.2 MEASURING EMPLOYEE PERFORMANCE
Performance criteria are the dimensions against which the performance of an incumbent, a
team, or a work unit is evaluated. There are differences in opinion about what should be
measured behaviours, results, or both? Behavioural focus on identifying the most critical
dimensions or competencies that are required to perform effectively on a job (e.g.,
Communication, Critical Thinking, Managing Resources, etc.) and defining behavioural
standards that describe levels of performance effectiveness in these. Standards of performance
are written statements describing how well a job should be performed. Performance standards
are developed collaboratively with employees, whenever possible, and explained to new
employees during the first month in the job. The performance standard provides a benchmark
against which to evaluate work performance. While the job description describes the essential
functions and the tasks to be done, the performance standard defines how well each function
or task must be performed in order to meet or exceed expectations.
Opponents of the behavioural-only view feel that an exclusive focus on behaviours is remiss
in no sufficiently emphasizing results that contribute to an organizations success. Advocates
of measuring behaviours say: 1. Assessment of bottom line results is problematic, because
these can be impacted by factors that are outside an employees control or the result of team
efforts; 2. A focus on behaviours ensures that the performance measured is entirely within the
employees control; 3. Effective job behaviour leads to bottom-line results- and does so in a
manner that circumvents the problems associated with the direct measurement of results; 4.
All of the jobs performance requirements can be described on a set of rating scales, thereby
mitigating the deficiency problems objective measures suffer by only considering bottom line
results, without regard to how these were achieved.
The value of focusing on results and using these to drive performance has been a cornerstone
of many performance management trends, at least as far back as the MBO systems that were
popular in the 1970s. Advocates of measuring results say: 1. Measuring behaviour misses
whats really essential whether the individual delivered important bottom-line results; 2.
Employees can engage in highly effective behaviours and never deliver results; 3. Employees
need specific goals and expectations that let them know what specific results they are
accountable for. Although results-oriented approaches to performance management are
intuitively appealing, an exclusive focus on results can in fact, yield a deficient performance
assessment because little or no consideration is given to how employees go about achieving
their results. While an organization can choose to focus exclusively on results or behaviours,
many have opted to include both because comprehensive performance assessment should
consider what someone has achieved (their results) as well as how they went about achieving
these (their job behaviour). (Pulakos, 2009)

5.2.1 Performance Standards
Performance standards define the expected levels of performance and are labelled benchmarks
or goals or targets depending on the approach taken. Specific, measurable, achievable,
realistic and clearly understood performance standards benefit both organizations and
employees. In a sense, performance standards define what satisfactory job performance. Well-
defined standards ensure that everyone involved knows the levels of accomplishment
expected (Mathis, Jackson, 2008).

37
5.3 WHO SHOULD APPRAISE EMPLOYEES?
Many organizations have expanded the idea of upward feedback into what they call 360-
degree feedback. 360 degree feedback is a method and a tool that provides each employee
the opportunity to receive performance feedback from his or her immediate supervisor,
subordinates, co-workers and customers, as Figure 5.2 shows. Most 360 degree feedback tools
are also responded to by each individual in a self assessment.
360 degree feedback allows each individual to understand how his effectiveness as an
employee, co-worker, or staff member is viewed by others. The most effective 360 degree
feedback processes provide feedback that is based on behaviours that other employees can
see.
The feedback provides insight about the skills and behaviours desired in the organization to
accomplish the mission, vision, and goals and live the values. The feedback is firmly planted
in behaviours needed to exceed customer expectations.

The Immediate Supervisor. Supervisors ratings still are the heart of most appraisal systems.
Getting a supervisors appraisal is relatively easy and also makes a great deal of sense. The
supervisor should be and usually is in the best position to observe and evaluate his or her
subordinates performance and is responsible for that persons performance.

Subordinates. Appraisal by subordinates can be a useful input to the immediate supervisors
development and the ratings are of significantly higher quality when used for that purpose.
Subordinates know firsthand the extent to which the supervisor actually delegates, how well
he or she communicates, the type of leadership style he or she is most comfortable with and
the extent to which he or she plans and organizes.

Figure 5.2 Multisource Appraisal

(Own processing)

Self-appraisal
(Person being
appraised)
Immediate
supervisor

Customers

Subordinates

Co-workers

38
Peer Rating. The appraisal of an employee by his or her peers can be effective in predicting
future management success. Peer and team rating are especially useful when supervisors do
not have the opportunity to observe each employees performance but other work group
members do.

Self-Rating. Self appraisal is an important part of the performance appraisal process where
the employee himself gives the feedback or his views and points regarding his performance.
Usually this is done with the help of a self appraisal form where the employee rates himself
on various parameters, tells about his training needs, if any, talks about his accomplishments,
strengths, weaknesses, problems faced etc.

Customers. Customers are often able to rate important aspects of the performance of
employees in front-line customer-contact position.

5.4 APPRAISAL METHODS
Performance can be appraised by a number of methods. Most organizations combine several
appraisal techniques.

Management by Objectives (MBO)
Management by Objectives involves setting specific measurable goals with each employee
and then periodically reviewing the progress made.

MBO is a three-stage process:
1. Meet to agree on the major objectives for a given period of time.
2. Develop plans for how and when the objectives will be accomplished.
3. Agree on that how the objectives will be measured

Setting of objectives.
Individual, departmental and organization objectives have to be compatible cascade
process. Objectives should be agreed not determined.

Objectives should be SMART.
S specific/stretching
M measurable
A achievable
R relevant
T time-framed

Critical incidents
Supervisor keeps the records of desirable or undesirable examples or incidents of each
subordinates work-related behaviour during appraising period.

39
Rating Scale Method
The rating scale is the simplest and most popular technique for appraising performance. The
Rating scale is a form on which the manager simply checks off the employees level of
performance. Figure 5.3 shows a typical rating scale. It lists traits and a range of performance
values for each trait. The supervisor rates each subordinate by circling or checking the score
that best describes his or her performance for each trait. The assigned values for the traits are
then totalled (Dessler, 1997).

Figure 5.3 Rating Scale

RATING
FACTORS
LEVEL OF
PERFORMANCE
SCALE POINTS EXPLANATION
Quality of
work
Unsatisfactory

Improvement
needed

Above satisfactory

Outstanding
below 50

69-50

89-70

100-90

Quantity of
work
Unsatisfactory

Improvement needed

Above satisfactory

Outstanding
below 50

69-50

89-70

100-90

Dependability Unsatisfactory

Improvement
needed

Above satisfactory

Outstanding
below 50

69-50

89-70

100-90

Keeping of
instruction
Unsatisfactory

Improvement needed

Above satisfactory

Outstanding
below 50

69-50

89-70

100-90

Overall rating

(Dessler, 1997, p. 346, modified)


40
Advantages:
The greatest advantage of rating scales is that they are structured and standardised. This
allows ratings to be easily compared and contrasted - even for entire workforces.
Each employee is subjected to the same basic appraisal process and rating criteria, with the
same range of responses. This encourages equality in treatment for all appraises and
imposes standard measures of performance across all parts of the organization.
Rating scale methods are easy to use and understand. The concept of the rating scale makes
obvious sense; both appraisers and appraised have an intuitive appreciation for the simple
and efficient logic of the bipolar scale. The result is widespread acceptance and popularity
for this approach.
Disadvantages:
Different supervisors will use the same graphic scales in slightly different ways.
One way to get around the ambiguity inherent in graphic rating scales is to use behaviour
based scales, in which specific work related behaviours are assessed.
More validity comparing workers ratings from a single supervisor than comparing two
workers who were rated by different supervisors.

Behaviourally Anchored Rating Scales (BARS)
Graphic rating scales that use critical incidents to anchored various points along the scale are
known as BARS. This method used to describe a performance rating that focused on specific
behaviours or sets as indicators of effective or ineffective performance. Scale is created for
each performed task within the job position. Each rate on the scale is supplemented by verbal
characteristics of behaviour (Cascio, 2010).

Mystery Shopping (Mystery Calling)
Mystery shopping, also known as secret shopping, involves posing as a regular customer in
order to evaluate the goods and services that a business provides. Your findings are reported
back to the client, and used to improve their services.

Mystery shopping is used in:
restaurants
hotels and resorts
retail stores
grocery stores
movie theatres
car dealerships
amusement parks
gas stations ...
Comparative Methods
Comparative methods require that managers directly compare the performance levels of their
employees against one another. Comparative techniques include ranking, paired comparisons
and forced distribution.

41
Ranking
Simple ranking supervisor lists the employees in order, from the best to worst on the basis
of set criteria.
Alternation ranking supervisor chooses the best subordinate (No.1), then the worst
subordinate (No.n), then the second best (No.2), then the second worst (No. -1), and so forth,
until all subordinates are ranked.
Paired Comparisons
Each employee is compared with every other employee. We can compare employees in each
competency or globally. There are several ways. For example: the best employee getting 2
points, worse 0, employees on the same level gets 1 point.

Forced Distribution
Forced distribution is a technique for distributing ratings that are generated with any of the
other appraisal methods and comparing the ratings of people in a work group. With the forced
distribution method the ratings of employees performance are distributed along a bell-shaped
curve (Mathis, Jackson, 2008).
For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80
percent in the middle, and 10 percent in the bottom. The top-ranked employees are considered
high-potential employees and are often targeted for a more rapid career and leadership
development programs.
In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be
given a probationary period to improve their performance.
Advantages:
They force reluctant managers to make difficult decisions and identify the most and least
talented members of the work group.
They create and sustain a high performance culture in which the workforce continuously
improves.

Disadvantages:
Supervisor must explain to an employee why she or he was placed in the lowest group and
others were placed in higher groups.
With small groups the assumption that a bell-shaped or other distribution of performance
occurs may be faulty.
Manager may make false distinctions between employees. By comparing people against
each other, rather against a standard of job performance supervisors trying to fill the
percentages may end up giving employees subjective ratings.


42

5.5 PROBLEMS WITH PERFORMANCE APPRAISAL
There are many possible sources of error in the performance appraisal process. One of the
major sources in mistakes made by raters.
Leniency and strictness errors.
The leniency bias crops when some raters have a tendency to be liberal in their rating by
assigning higher rates consistently. Equally damaging one is assigning consistently low rates.
Central tendency.
Some raters appraise all the employees around the middle point of the rating scale and they
avoid rating the people higher or lower level. They follow play safe policy because of answer
ability to management or lack of knowledge about the job and person he is rating or least
interest in his job.
Personal prejudice.
If the rater dislikes any employee, he may rate them at the lower end and this may distort the
rating purpose and affect the career of these employees.
Halo effect.
To minimizing the halo effect, you should appraise all the employees by one trait before
going to rate on the basis of another trait. A person outstanding in one area tends to receive
outstanding or better than average ratings in other areas as well, even when such a rating is
undeserved.
Problem with recent performance effect.
In general, raters remember the recent appraisal of the employee and they usually follow
appraisal results last time.

Varying Standards.
When appraising employees, a manager should avoid applying different standards and
expectations for employees performing similar jobs. Such problem often results from the use
of ambiguous criteria and subjective weightings by supervisors.

5.6 THE APPRAISAL INTERVIEW
Managers carry out the appraisal interview at the end of the appraisal process. They apprise
employees of appraisal results and endeavour to his agreement with future objectives.

Preparing for the Meeting
Both parties should prepare for the meeting beforehand if a successful outcome is to be
delivered. Employees should be given adequate notice of appraisal interview. The appraisal
interview should take place in a comfortable atmosphere and should be free from
interruptions.

43
Structure of the Interview
Explain the purpose and scope of the interview.
Discuss the job in terms of its objectives and demands.
Encourage the employee to discuss his or her strengths and weaknesses.
Discuss how far have agreed objectives have been met.
Agree future objectives.
Discuss any development needs appropriate to the existing job or the individuals future in
the organisation, for example: training, education, work experience.
Summarise the plans which are agreed.
If there are disagreements it should explain how the employee can appeal against his or her
appraisal markings.
Appraiser should tell the employee in which way the results of appraisal will express in
rewarding for next period.

Self-assessment has to be a part of appraisal interview. This can improve the quality of the
appraisal discussion because individuals feel actively involved in the process and is
encourages them to work through the points above beforehand.

How does a good appraisal look like?
Appraises do most of the talking.
Appraisers listen actively to what they say.
There is a scope for reflection and analysis.
Performance is analysed, not the personality.
The whole period is reviewed and not just isolated events.
Achievement is recognised and reinforced.
You should end positively with agreed action plans.

After the interview
Make sure that the appraisal forms and documentation are completed.
Ensure copies are provided to the appraiser for comments.
Make sure objectives, plans and individual actions are understood and agreed.
Regularly review actions and highlight areas of difficulty or clarification.
Discuss any changes to the job as they occur and the impact this may have on agreed
objectives and plans.
Focus on appraisal and objectives as ways for improving job and performance.

Giving Feedback
Feedback should be based on facts not subjective opinion and should always be backed up
with evidence and examples. The aim of feedback should be to promote the understanding of
the individual so that they are aware of the impact of their actions and behaviour. It may
require corrective action where the feedback indicates that something has gone wrong.
However, wherever possible feedback should be used positively to reinforce the good and
identify opportunities for further positive action. Giving feedback is a skill and those with no
training should be discouraged from giving feedback.
Feedback will work best when the following conditions are met:

44
Feedback is built in with individuals being given access to readily available information on
their performance and progress.
Feedback is related to actual events, observed behaviours or actions.
Feedback describes events without judging them.
Feedback is accompanies by questions soliciting the individuals opinion why certain
things happened.
People are encouraged to come to their own conclusions about what happened and why.
There is understanding about what things went wrong and an emphasis on putting them
right rather than censuring past behaviour.

5.7 HUMAN RESOURCE APPRAISING RESPONSIBILITIES
Performance management and appraisal require a coordinated effort among the human
resource professionals, the managers and employees. Managers, human resource professionals
and employees all need to work together to ensure that performance measurement and
feedback are effective and fair to everyone concerned, as described in Figure 5.4.
The responsibilities of HR professionals include ensuring that the organizations
performance management practices are aligned with the internal organizational environment,
reflect state-of-the-art knowledge, and meet legal standards. HR professionals also help
ensure that well-designed practices are implemented appropriately. HR professionals typically
design a performance appraisal system. Managers then appraise employees using the appraisal
system. During development of the formal appraisal system, managers usually offer input as
how the final system will work. Managers are responsible for measuring the performance of
their subordinates, communicating performance evaluations to their subordinates, and helping
their subordinates improve. The primary performance management responsibilities of
employees are seeking honest feedback and using it to improve their performance. Before
discussions about their performance, employees often are asked to participate by providing
their own assessment of their performance. ( Jackson, Schuler, Werner, 2009)

Figure 5.4 Typical Division of HR Responsibilities: Performance Appraisal and
Measuring Performance

HR PROFESSIONALS MANAGERS EMPLOYEES
Work with managers to provide
job analysis data for use in
developing valid and legal
performance measures.
Work with HR professionals to
develop valid performance
measures that meet legal
guidelines.
Work with managers and HR
professionals to set performance
expectations.
Work with managers to provide job
analysis data for use in developing
specific, difficult, but attainable
goals.
Work with HR professionals to
develop specific, difficult, but
attainable goals.
Develop goal-setting and self-
management skills.
Design the performance
management system and select
the methods and forms to be
used for appraising employees.
Develop an understanding of
how common appraisal rating
errors can be avoided.
Candidly appraise the work of
other employees (e.g., bosses,
peers).
Train managers in conducting
performance appraisal.
Give constructive and honest
feedback to employees.
Participate in self-appraisal.
Train everyone who completes
performance appraisals in how
to avoid appraisal rating errors.
Seek and accept constructive
feedback about own
performance.
Seek and accept constructive and
honest feedback.

45
Train managers to give and receive
feedback.
Provide resources and remove
constraints as needed for
improvement.
Learn to give constructive and
honest feedback to others.
Maintain a reporting system to
ensure that appraisals are
conducted on a timely basis.
Evaluate the performance of
employees.
Develop an accurate
understanding of performance
expectations and criteria.
Maintain performance appraisal
record for individual employees.
Use performance information for
decision making.
Learn to diagnose causes of
performance deficiencies for self
and team.
Provide personal assistance to
employees if requested.
Complete the forms used in
appraising employees and return
them to the human resource
department.
Work with managers to develop
performance improvement
strategies.
Review appraisals with employees.
Establish a plan for
improvement with employees.

Identify development areas.
( Jackson, Schuler, Werner, 2009, modified)

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3.1 HUMAN RESOURCE PLANNING

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