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Q.5.: Clarify the critical aspects of a performance management and review system and
what is 360 feedback or balanced scored card?
Seven aspects of performance management you need to consider as critical in making
performance management more effective.
1. Formulation of an effective performance management policy and framework.
2. Getting to know and understanding the job functions of every employees. This also
involves empowering employees to the extent needed to enable employees to make
day-to-day decisions in the course of doing their jobs.
3. Understanding the link between employees' jobs and the organization's goals.
4. Monitoring employees' performance on a daily basis.
5. Measuring employee performance. This requires determining performance measures.
6. Reducing / getting rid of things that hinder or prevent good performance.
7. Teamwork between supervisor and subordinates (employees) and between employees
in order to improve performance.
Balanced Scorecard
What is Balanced Scorecard ? (BSC)
The Balanced Scorecard (BSC) is a systemic
and strategic tool of measuring performance of
an organization. It is a tool which enables
manager’s to monitor and measure the different
levels of performance activities done by their
staff members. It also helps them to control and
make decisions basis on performance results.
The characteristics of balance scorecard are
derived from financial and non-financial
parameters which indicate internal business
process and performances which are based on
external outcomes. As founder of Balance
scorecard,
Kaplan-Norton, defines as per,“The balanced scorecard refer traditional financial unit
measurement . these financial measures tell the story of previous events, an adequate story
for industrial age companies for which investments in long-term capabilities and customer
relationships were not critical for success.
The balance scorecard supports the strategic decisions of an organization and
characteristics as:
• Data capture, analysis and monitoring
• A combination of financial and non-financial data
• Its emphasis on the strategic plan of the organization
Balanced Scorecard Perspective
The balance scorecard comprises the activities of collecting data, develop matrices and
analysis it through four perspectives, which are:
1. Objectives - It consists of strategy at organization and department level
2. Measures – The progress report and measurement bases on desired objectives
3. Targets – Refers to targets consists of each parameters set by organization
4. Initiatives – the parameters to facilitate the performance initiatives
The above four parameters are interconnected with each other to make the business process
more effective results which leads to improve the financial performances. The organizations
make balance scorecard as per their own objectives, measures, targets and initiatives. Also it
standardized weightages in each parameter as per their business processes and goals. Giving
importance on each parameter is the as per choice of organization, The balance scorecard is
based on four parameter i.e. financial, customers, internal business process and learning
growth. Each parameter contributes the performance measurement and suggests improvement
areas which are completely based on weightages assign to each parameters.
1. FINANCIAL PERSPECTIVE
The financial perspective is one of the most important aspects of balance scorecard. It
contributes to the bottom line improvements of the company. In other words, it consists as
balance sheet of performance standards of the organization. This tool is made only for the
organisation internal stakeholders and management and reflects the financial health of
company/organisation.
The financial perspective to create balance scorecard are as follows:
Company’s Turnover
Profit and loss Margins
Fixed cost, variable cost and Lower Costs
Working capital of organization
Investment capital
Annual growth of Revenue
Market share
Net and gross Profit Ratio
2. CUSTOMER PERSPECTIVE
The main goal of any organization is to deliver value to the customer. The two main
indicators of evaluating the organization performance in the eyes of customers are; “customer
feedback “and “customer satisfaction” reports. The customers could be either “business to
business” (B2B) or “business to customers” (B2C). Viewing the core business and industry,
the relationship with the customers determines. For example, in case of manufacturing
units, the relationship with the customer are generally B2B, whereas in service industry, there
company maintain direct relationship with the customer i.e. B2C.
Customer perspective enables to identify the parameters of measuring satisfactions of
customers i.e. “how the customer sees us” or “what are the expectations of customers from
us” In view of customer perfective, the main parameters taken by many organizations are:
1. Product and service Offering
2. Brand identity & brand image
3. Relationship with the customers
4. The customer services
5. New products and services
6. Entering new market
7. Customer satisfaction and its retention
8. Customer loyalty
9. Fast response on customer query and complaints
3. INTERNAL BUSINESS PROCESS PERSPECTIVE
The metrics of balance scorecard made basis on internal business process which allows
managers to direct the channels of their department growth. In other words,it enables to
identify the strength and weakness of internal business process systems. The focus areas of
business perspectives could be:
1. Operations Management Processes
2. Innovation Processes
3. Customer Relationship Processes
4. Regulatory & Environmental Processes
5. LEARNING & GROWTH PERSPECTIVE
The Learning and growth approach is the 4th element of balance scorecard. It enables to
identify the training, development and learning needs in an organization’s. In other words, it
identifies the gap between “what we have learned “& “what should we learn “to meet
objectives. This perspective is majorly used in training need identification as well in various
organizations.
Kaplan and Norton give special importance as 'learning' is something more than of
'training' it also includes the roles like mentors and tutors within the organization, as well as
that requires the need of communication among workers that allows them to readily get help
on a problem when it is needed actually . Hence, it comprises with
1. Organization Culture
2. Employee skills and competency levels.
3. Leadership and managerial skills
4. Capabilities of executing Information system
Q.3: Explain the process to scientifically select an employee, what are the errors in an
interview and its process and how they can be overcome?
Employee Selection Process
Employee Selection is the process of putting right men on right job. It is a procedure of
matching organizational requirements with the skills and qualifications of people. Effective
selection can be done only when there is effective matching. By selecting best candidate for
the required job, the organization will get quality performance of employees. Moreover,
organization will face less of absenteeism and employee turnover problems. By selecting
right candidate for the required job, organization will also save time and money. Proper
screening of candidates takes place during selection procedure. All the potential candidates
who apply for the given job are tested.
But selection must be differentiated from recruitment, though these are two phases of
employment process. Recruitment is considered to be a positive process as it motivates more
of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data.
While selection is a negative process as the inappropriate candidates are rejected here.
Recruitment precedes selection in staffing process. Selection involves choosing the best
candidate with best abilities, skills and knowledge for the required job.
The Employee selection Process takes place in following order-
1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligiblity criteria laid down by the organization. The skills, academic and
family background, competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and planned than
the final interviews. The candidates are given a brief up about the company and the
job profile; and it is also examined how much the candidate knows about the
company. Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required
to fill application blank. It contains data record of the candidates such as details about
age, qualifications, reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are
aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used
to objectively assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and
the potential candidate. It is used to find whether the candidate is best suited for the
required job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at
times. Such interviews should be conducted properly. No distractions should be there
in room. There should be an honest communication between candidate and
interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and
then finally he is appointed by giving a formal appointment letter.
What you do during a job interview is viewed as a "sample" of your work. Everything you do
is being judged because they don't know you (unless you are one of the lucky referred
candidates).
Show them you would be a great hire. Don't make these mistakes:
Mistake #1: Appearing uninterested.
This drives employers crazy. Most employers have more applicants than they need or want. If
you aren't demonstrably interested in them, they certainly aren't interested in hiring you.
To Avoid:
Demonstrate your interest in the company and the job. Show up on time, appropriately
dressed. Turn off your cell phone.
Ask intelligent questions that indicate you have done some research, but don't ask a question
that could be answered in 30 seconds with a Google search or a peek at their website's
homepage.
Mistake #2: Being unprepared.
Obvious lack of preparation is an opportunity crusher. And, lack of preparation usually
becomes obvious quickly.
To Avoid:
Be prepared! Preparation will help you demonstrate your interest in them and the job. You
will also perform better in the interview when you are prepared.
Successful preparation has several elements:
Analyze the job description and your match with it.
Carefully analyze the job description. Write down each requirement, and how you
meet that requirement.
Then, determine your accomplishments that align with those requirements. Write
down your accomplishments, quantified as much as possible, to help you remember
them.
Q.6 How can change be managed by an HR manager and what should be the back
ground work required to successfully implement change?
Needed: a systemic, proactive approach
If change is not implemented correctly, the results can range from inconvenient to disastrous,
such as inefficiencies, duplicated efforts, and lost business opportunities.
Companies that are able to manage change effectively can gain distinct advantages over their
competition that can lead to even greater success. When done right, change management can
alleviate uncertainty among employees about how the change might impact them, reduce the
potential for a negative impact on productivity, and engage or re-engage the company’s
workforce.
1. Overcoming resistance
Although employee resistance is a natural reaction to widespread organizational changes, you
can overcome that resistance by focusing on several key strategies:
Clearly and consistently communicate about the change well in advance of its
implementation.
Help employees better understand the need for the change and the rationale
behind the decisions, as well as the ways the change may affect them.
2. Engaging employees
Employees who are engaged in the change are more likely to put in the effort necessary to
help implement the change and ensure a positive outcome for the organization. Help create
high levels of employee engagement during your change process by:
Developing a team approach that includes employees’ perspectives from a variety of
departments and levels.
Assigning and clarifying roles and responsibilities.
Increasing your focus on the workers who are affected most by the change.
Understanding and taking into account the different motivational factors for each
employee.
3. Implementing change in phases
For companies planning a major change initiative, taking a phased approach can help ensure
that the transition to a new system or process is as smooth and seamless as possible. Leading
change management firm Prosci recommends three phases:
Prepare for change – By taking steps such as defining your change management
strategy, developing your change management team, and outlining key roles.
Manage the change – By creating and executing change management plans that
include communications, operations and resistance management.
Reinforce the change – By collecting and analyzing feedback and then implementing
corrective actions where needed.
4. Communicating change
Failing to tell employees in advance about organizational changes can increase employee
misconduct by 42 percent. An integral part of every stage of the change management process,
communication must be a two-way street in order to ensure the success of the organizational
change.
Pre-and post-surveys allow for feedback both before and after the change has been
implemented, which can enhance the overall process.
Engage resistors in one-on-one sessions prior to the solution’s implementation to
allow them to provide their input.
Be clear, consistent and explicit, especially when it comes to timeline and
responsibilities.
In effective change management, all changes should be identified and planned for prior to
implementation. Back-out procedures should be established in case changes create problems.
Then, after changes are applied, they are thoroughly tested and evaluated. This article
describes the process steps for change management and factors critical to its success.
Step 1: Define change management process and practices:
As you would with other systems management disciplines, you must first craft a plan for
handling changes. This plan should cover:
Procedures for handling changes—how changes are requested, how they are
processed and scheduled for implementation, how they are applied, and what the
criteria are for backing out changes that cause problems
Roles and responsibilities of the IT support staff—who receives the change
request, who tracks all change requests, who schedules change implementations, and
what each entity is supposed to do
Measurements for change management—what will be tracked to monitor the
efficiency of the change management discipline
Tools to be used
Type of changes to be handled and how to assign priorities—priority assignment
methodology and escalation guidelines
Back-out procedures—Actions to take if applied changes do not perform as expected
or cause problems to other components of the system
Step 2: Receive change requests:
Receive all requests for changes, ideally through a single change coordinator. Change
requests can be submitted on a change request form that includes the date and time of the
request.
Step 3: Plan for implementation of changes:
Examine all change requests to determine:
Change request prioritization
Resource requirements for implementing the change
Impact to the system
Back-out procedures
Schedule of implementation
Step 4: Implement and monitor the changes; back out changes if necessary:
At this stage, apply the change and monitor the results. If the desired outcome is not
achieved, or if other systems or applications are negatively affected, back out the changes.
When a change has been successfully made, it is crucial that the corresponding system
information store be updated to reflect them.
Q.2: Elaborate a manpower planning model to meet the needs of a large financial
services organisation like state bank of India, what type of tests and interview
rounds and types are used and why?
Manpower planning means planning means deciding the number and type of the human
resources required for each job, unit and the total company for a particular future date
in order to carry out organizational activities. Manpower planning may be viewed as
foreseeing the human resources requirement of an organization and the future supply of
human resources and (i) making necessary adjustments between these two and
organizational plans and (ii) foreseeing the possibility of developing the supply of
manpower resources in order to match it with the requirements by introducing
necessary changes in the functions of human resources management.
Need of Manpower Planning
Manpower Planning is a two-phased process because manpower planning not only analyses
the current human resources but also makes manpower forecasts and thereby draw
employment programmes. Manpower Planning is advantageous to firm in following manner:
1. Shortages and surpluses can be identified so that quick action can be taken wherever
required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby
overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training
programmes can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning,
human resources can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.
The importance of manpower planning in an organization is :
to recruit and retain the manpower of required quality and quantity.
1. to foresee the employee turnover and make the arrangements for minimizing turnover
and filling up of consequent vacancies.
2. to meet the needs of the programmes of expansion, diversification etc.
3. to foresee the impact of technology on work, existing employees and future human
resource requirements.
4. to improve the standards, skill, knowledge, ability, discipline etc.
5. to assess the surplus or shortage of manpower and take measures accordingly.
6. to maintain congenial industrial relations by maintaining optimum level and structure
of human resources.
7. to minimize the imbalances caused sue to non-availability of human resources of the
right kind, right number in right time and right place.
8. to make the best use of its human resources and
9. to estimate the cost of human resources.
Selection procedure of SBI PO:
All the candidates need to appear for examination in three phases i.e. Preliminary
examination, Main examination and Group Exercise followed by interview round.
Preliminary examination
The paper will consist of objective type questions
It will be an online test of 100 marks and the duration of the same will be one hour.
It will consist of the following three sections:
English language: 30 questions (20 minutes)
Quantitative aptitude: 35 questions (20 minutes)
Reasoning ability: 35 questions (20 minutes)
Main examination:
The exam will consist of an objective test of 200 marks and descriptive test for 50 marks.
Objective test: The duration of the test will be three hours. Questions will be framed from
the following four sections:
Reasoning and Computer Aptitude: 45 questions (60 minutes)
Data Analysis and Interpretation: 35 questions (45 minutes)
General/ Economy/Banking Awareness: 40 questions (35 minutes)
English Language: 35 questions (40 minutes)
Descriptive test: The duration of the test will be 30 minutes. It will have two questions for
50 marks will be a test of English language (letter writing and essay).
Note: One-fourth marks will be deducted for wrong answers in both prelims and mains.
Interview Process
There are two rounds in Interview Process. They are:
1. Group Discussion
2. Personal Interview
Group Discussion will conduct for 20 Marks:
Group Discussion: 20 marks
Interview: 30 Marks
Experience: 10 Marks
SBI will check the following abilities in a Group Discussion:
Communication skills
Decision making
Problem analysis
Creativity
Leadership qualities
Ability to work in a team
Q.7: Why do you need Training need analysis?
Here is a quick guide to help you conduct this training need assessment effectively:
Step 2: Define the Target Group for training and their Desired Competencies
Based on the desired business outcomes, now you should clearly define the target group for
taking the training. Ensure that you involve your employees in this process.
Get to know what they think and what you are trying to achieve with your training program.
Map expected business outcomes with the desired competencies of your target population.
• Organizational Productivity.
• Organizational Flexibility.
• Absence of organizational conflicts.
The OE is reflected in how the organization is equipped to move towards its goals and
survive in the face of external and internal variability through creative adaptation strategy. We
shall now discuss the various approaches to OE.
b. Systems Approach:
Sometimes the goal attainment approach may not be appropriate in view of the fact that there
may be multiple goals which could be in conflict with each other. It may also so happen that
the performance may be highly encouraging in regard to some goals, while there may be a
dismal failure in regard to some other goals. Hence, we can never say that an organization is
effective or ineffective in terms of its multiple goals. Therefore it may be necessary to look at
OE through a system approach. Some scientist calls this approach as “input- throughput-
output approach”. The behavioral scientist Bennies has listed the following criteria for
explaining OE.
• Adaptability: The ability to solve problems and to react with flexibility to changing
environment demands.
• A sense of identity: Knowledge and insight on the part of the organization of what it is,
what its goals are, and what it is to do? How outsiders perceive the organizational goals.
• Capacity to Test Reality: The ability to search out accurately, to perceive clearly and
interpret correctly, the real properties of the organizational environment, particularly those
which have relevance to the functioning of the organization.
• Integration: it is integration among the sub parts of the total organizational, such that the
parts are not working at cross purposes.
c. Strategic—constituencies Approach:
One closely related approach to systems approach is the above approach. This approach
proposes that an effective organization is on that satisfies the demands of those constituencies
in its environment from whom it requires support for its continued survival. This approach
differs from the systems approach in the sense that it did not concern with all the
organizational environments, but seeks to appease only those constituencies who can threaten
the organizational survival. Some typical criteria of selected strategic constituencies are
shown in the table below.
The following table is given to enable the student to know that typical criteria of selected strategic
constituencies.
Constituency Typical of Criteria
Owners Return on investment: growth in earnings.
Compensation: firing benefits;
Employees
Satisfaction with working conditions.
Customers Satisfaction with price, quality, service.
Suppliers Satisfaction with payments; future sales potential.
Ability to pay indebtedness.
Creditors
Competitive wages and benefits.
Satisfactory working conditions;
Unions
Willingness to bargain fairly.
Local community Involvement of organization’s members in local affairs, lack of damage to
officials the community’s environment.
Government agencies Compliance with laws; avoidance of penalties and reprimands.
The role of OD consultant is very crucial. He is the one who shows mirror to age old
organization, its system and process.
Below is an attempt to capture the qualities of a good OD consultant. You will notice that
these include knowledge, skills, attitudes, emotional maturity, and an ethical orientation
which are not easily found in the combination required.
The ability to think afresh. Each OD situation is unique, and what worked before may not
work here. It is best to embrace the ambiguity and address situations freshly and without
fixed assumptions.
The ability to act professionally. Knowledge of a variety of OD techniques, their strengths
and weaknesses and how they may be used. Deep knowledge of research methods,
organizational behavior, social psychology and management disciplines.
The ability to network. Being able to make useful contacts and develop cooperative
relationships with people who can help with the OD project.
The ability to elicit information. Knowing how to gather reliable information from
individuals and groups involved in change. This means the ability to listen, to emphasis and
to win the trust of the clients so they speak openly. It means being able to understand others'
'life worlds' so that you can act appropriately.
The ability to critically assess and synthesis. The capability to collect data from different
sources, discriminate between what is important and what is less so and weave it into a
coherent picture of the issues requiring intervention.
The ability to diagnose. The capability to turn the client's diagnosis (which may only be an
appreciation of symptoms) into a construction of organizational issues which all parties can
agree. It also requires the ability to conceptualize using the language and ideas of social
science.
The ability to persuade. Part of the process above also implies a capacity for persuasion and
an instinct for power, that is, being able to sell ideas and influence political coalitions to
embrace a line of change.
The ability to inspire. Persuasion also involves the ability to tap into others' energy and to
radiate personal enthusiasm so that others have the confidence to try new ways of behaving.
The moral courage to address issues. Much of OD involves surfacing issues which others
would like to ignore and keeping them focused despite resistance.
The ability to develop others. This is the counseling side of the role (e.g. helping teams
experiment and learn new skills) and also the facilitative. It is about finding 'teachable
moments'. opportunities to challenge existing mindsets and demonstrate the value of
alternative approaches.
Q.1: Describe the HRM functions of a large company like Tata steel which is
transnational and which HRM functions can be outsourced and why?
MANPOWER PLANNING
Manpower planning enables HR department to project its short to long term needs on the
basis of its departmental plans so that it can adjust its manpower requirements to meet
changing priorities. The more changing the environment the department is in, the more the
department needs manpower planning to show:
The number of recruits required in a specified timeframe and the availability of talent
Early indications of potential recruitment or retention difficulties
Surpluses or deficiencies in certain ranks or grades
Availability of suitable qualified and experienced successors
PERFORMANCE APPRAISAL
Performance appraisal assesses an individual's performance against previously agreed work
objectives. Performance appraisal is normally carried out once a year. They assess key result
areas of their employees, workers and supervisors. Since it is a joint responsibility of the
individual and the supervisor; every individual in TISCO are co prime to each other.
It also enables management to compare performance and potential between employees and
subordinates of the same rank.
Rating of employees is done by their performances. It is given as per ranks very good,
average, and average to medium and below average. On the basis of these rankings highest
reward of the year is given to best suitable worker. The better performing employee gets the
majority of available merit pay increases, bonuses, and promotions.
COMPENSATION PLANNING
It depends on financial capabilities.
Yearly increments are given.
Compensation for inflation is common for all employees.(flat rates)
It is decided by union and management where various demands are negotiated.
It is paid as per other industries. Individual performance bonus is also given.
DEVELOPMENT OF EMPLOYEES
At Tata Steel, there is a continuous effort of staying in touch with employees to ensure
that there is the right culture to engage them in consistent performance improvement.
Towards the well-being of employees Tata Steel has put into practice many initiatives,
events and programmes that have helped to create not only an enduring loyalty
amongst employees but also enabled them to have a more fulfilled life.
Medical facilities:
Free medical facilities for employees and their family, which continues even after retirement.
Housing facilities:
Subsidised electricity, water and housing facilities to all employees.
Higher studies:
Monetary incentives to employees acquiring higher qualifications in a related field along with
study leave, scholarships etc. when necessary.
Holiday Homes:
Tata Steel has five holiday homes for benefit of employees during vacation.
DEVELOPING PEOPLE
Valuing its people as a great asset, Tata Steel is committed to their development, both in order
to benefit the individual and to benefit the Company through increased knowledge and skills.
In order to leverage maximum potential of human resource to achieve business objectives the
Company recognises that enrichment of people will help retain a motivated workforce in a
competitive environment.