MANAGEMENT

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MANAGEMENT
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What is HRM all about? 15.

• Each company needs the combination of the
  following 3 factors to operate
• M1-Money
• M2-Man
• M3-Manufacturing
• Common features of these factors
• a certain level of capacity and efficiency,
• they are available in the market,
• the price is determined by the relation of
  supply/demand

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What is HRM all about? 15.

• Special features of M2
• Does not run out permanent resource
• Not storable the capacity which is not used
  within a certain time frame is lost! It cant be
  reserved for next time!
• Innovative always able to renew, creates new
  solutions
• Makes decisions resigns from position
• Is not owned by the company although it is not
  part of the equity, it can increase the value of
  the company (capacity, performance )

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What is HRM all about? 15.

• 2. Definition Human resource management is the
  function performed in organizations that
  facilitate the most effective use of people
  (employees) to achieve organizational and
  individual goals.

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What is HRM all about? 15.

• 3. The Diagnostic Model for HRM
• This model in HRM is a framework that can be
  used to help managers focus on a set of relevant
  factors. There are 3 main factors included in the
  model
• people
• the internal and external environment and
• the organization itself.

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What is HRM all about? 15.

• External Environmental forces
• Economic Conditions Composition of the labor
  force Government requirements and regulations
  The union

External Environmental forces Economic Conditions
- Composition of the labor force - Government
requirements and regulations - The union
External Environmental influences Economic
Conditions The labor market Government
requirements and regulations The union
Human Resource Management Program
HRM Activities People
Results
Planning Employees Job analysis
- Abilities Staff Recruitment and
selection - Motivations Performance Perf
ormance evaluation Career planning and
development keep the Benefits and services
Scope of activities employee Atten
dance Discipline - Requirements Satisfac
tion Labor relations - Compensation Other
s
Internal Environmental influences Organizational
procedures Rules of
organization Strategy Work
group
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What is HRM all about? 15.

• Results can be influenced by the HRM
  activities. A significant reason for the eventual
  success of any HRM activity is that the
  organizations employees are the best qualified
  and are performing jobs that suit their needs,
  skills, and abilities. Having the right staff
  means the future of the company. The goal is to
  make the staff think, feel and behave positively
  toward work and the place of work.
  Satisfaction. Good reputation makes the company
  easier to recruit new employees.

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What is HRM all about? 15.

• There are other factors which could be
  important for the organization, such as safety
  and health, stress handling, etc.
• By studying the diagnostic model you should
  see that in order to work effectively, a number
  of HRM activities must be efficiently practiced.
  E.g. to encourage individuals to use their
  abilities it may not be sufficient to only have
  a properly analyzed job. A sound performance
  evaluation, equitable benefits and services, and
  an attractive work schedule may also be needed.

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What is HRM all about? 15.

• HRM activities are all related to each other and
  have a combined effect on people. The objectives
  of the HRM functions must be accomplished in
  order for the organization to remain competitive
  and to survive in the environment.
• Employees Scope of activities the basic
  function of the HRM activity is to create harmony
  between employees and scope of activities.

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What is HRM all about? 15.

• Some differences between employee performance
  affecting HRM programs are due to the differences
  in abilities (mechanical, motor coordination,
  mental or creative skills) and motivation toward
  work and the place of work (working hard, being
  on time). Generally it is said that the
  performance of an organization is brought about
  by the abilities and motivation of the employees.
• Each position has general requirements eg.
  level of education, and special requirements like
  experience on a special field. Requirements need
  to be rewarded with competitive salary and other
  benefits, that motivate the employee.

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What is HRM all about? 15.

• HRM Activities
• -Planning Two steps 1. To make a forecast,
  based on the companys business strategy needs,
  about the quantity and quality of the human
  resources 2. After the environmental forecast,
  define the right tasks
• -Job analysis The process of defining a job in
  terms of tasks or behaviors and specifying the
  education, training, and responsibilities needed
  to perform the task successfully

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What is HRM all about? 15.

• -Recruitment and selection The goal is to find
  the right person for the right task.
• Sources of recruits two sources of applicants
  can be used internal ( present employees), and
  external (those not presently affiliated with the
  organization). External recruitment methods
  tests, interviews.
• -Performance evaluation is a system set up by the
  organization to regularly and systematically
  evaluate employee performance.

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What is HRM all about? 15.

• Career planning and development internal and
  external trainings help the employees to reach
  their dream positions
• Benefits and services are a part of the rewards
  of employment that reinforce loyal service to the
  employer. Major benefits and service programs
  include payment for time not worked, insurance,
  pension funds and services

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What is HRM all about? 15.

• Labor relations the continuous relationship
  between a defined group of employees (represented
  by a union or association) and an employer. The
  relationship includes the negotiation of a
  written contract concerning payment, working
  hours and other conditions of employment.

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What is HRM all about? 15.

• Internal environmental influences involve
  characteristics and factors that are found within
  the organization.
• Organizational procedures how the company will
  change its activities / the human
  resources / training
• Rules of organization organizational structures
• (centralized, decentralized) coordination of
  the human resources and the scope of activities

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What is HRM all about? 15.

• Strategy indicates what an organizations key
  executives hope to accomplish in the long run.
• (Human strategy!)
• Work group labor relations
• - External environmental influences involve
  characteristics and factors that are found
  external to the organization.
• Economic Conditions the general procedures of
  macro economy influence the financial stability
  of the micro organizations. Also influence the
  human resources policy.

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What is HRM all about? 15.

• ( good economical conditions more benefits
  for the employees, poor economical conditions
  no benefits for the employees)
• The labor market the supply and demand
  situations influence the HRM activities.
• Government requirements and regulations the
  government regulates and influences some aspects
  of personnel more directly than others
  (employees and employers rights). Hungary Code
  of Labour.

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What is HRM all about? 15.

• The union the presence of a union affects most
  aspects of HRM- recruiting, selection,
  performance evaluation, promotion, compensation,
  and benefits among others.

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Job Analysis and Design 16.

• The goal, the methods and the results of the job
  analysis
• 1. a. Definitions
• Job the basic element of an organization.
• In a narrow sense consists of duties performed
  by an individual
• In a broad sense /out of duties/
  responsibilities, relations, the place of work
  and the policy

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Job Analysis and Design 16.

• Job analysis the process of defining a job in
  terms of tasks or behaviors and specifying the
  education, training, and responsibilities needed
  to perform the job successfully.
• The job analysis process /6/
• Examine the total organization and the fit of
  each job
• Determine how job analysis information will be
  used

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Job Analysis and Design 16.

• 3. Select jobs to be analyzed
• 4. Collect data by using acceptable job analysis
  techniques
• 5. Prepare job description
• 6. Prepare job specification

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Job Analysis and Design 16.

• 1.b. Job analysis methods of data collection
• 2 main groups
• Observation direct is used for job that
  require manual, standardized, and short-job cycle
  activities. The job analyst must observe a
  representative sample of individuals performing
  these jobs
• Functional job analysis
• - based on observation
• - focuses on the purpose of the job and the
  tasks within the organization

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Job Analysis and Design 16.

• - jobs are concerned with data, people and
  things (quantitatively rated!)
• - mental resources are used to describe data
  interpersonal resources are used with people
  physical resources are applied to people
• Workday analysis
• - based on observation but not constantly
• - sampling method
• - focuses on the workflow, and its elements
• - similar to the task inventory,
• - professional analyst needed!

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Job Analysis and Design 16.

• II.
• Job Incumbent Diary/Log
• - its a recording by job incumbents of job
  duties, frequency of the duties and when the
  duties were accomplished
• - this technique requires the job incumbent to
  keep a diary/log on a daily basis
• - comparisons on a daily, weekly or monthly
  basis can be made

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Job Analysis and Design 16.

• the diary/log is useful when attempting to
  analyze jobs that are difficult to observe, such
  as those performed by engineers, scientists and
  senior executives
• Questionnaires
• - the least costly method for collecting
  information

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Job Analysis and Design 16.

• It is an effective way to collect a large amount
  of information in a short period of time
• It includes specific, mainly standardized,
  questions about the job, job requirements,
  working conditions and equipment
• The should be short and simple
• Explain what the is being used for
• Test the before using it
• Disadvantage no time for customized questions,
  the result can be false

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Job Analysis and Design 16.

• Task inventory a coordinated and aggregated
  series of work elements to produce an output
• It is easy to prepare, if we have a good
  questionnaire
• Fast evaluation by computers
• Results can be used job evaluation, training
  plans
• Disadvantage takes a long time to make an
  inventory about the tasks

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Job Analysis and Design 16.

• Interview
• - the most widely used job analysis data
  collection technique
• - they permit the job analyst to talk face to
  face with job incumbents
• - the job incumbent can ask questions of the job
  analyst feedback!
• - usually a structured set of questions will be
  used in interviews
• - major problem inaccurate information may be
  collected

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Job Analysis and Design 16.

• 2. Job design
• Def. is the procedure that identifies the
  tasks and functions of the job
• Methods
• Specialization complex work procedures can be
  divided into small parts, that do not require
  specialized knowledge and can be easily described
• -Problems high fluctuation, dissatisfaction at
  the workplace (monotonity!)

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Job Analysis and Design 16.

• Job Enlargement a group of two or more jobs that
  have similar job duties
• - reverse of the specialization
• - tried to reduce monotonity was not
  successful
• Rotation within certain timeframes the employee
  has to change his/her job
• reduce monotonity, BUT!
• do not increase efficiency

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Job Analysis and Design 16.

• Job Enrichment a method of designing a job so
  that employees can satisfy needs while performing
  the job
• Key job core dimensions
• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback

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Job Analysis and Design 16.

• 3. Job evaluations methods
• Def. is the formal process by which the
  relative worth of various jobs in the
  organization is determined for pay purposes.
• 3.1. Global comparison methods
• Ranking the system used primarily in smaller,
  simpler organizations. Instead of analyzing the
  full complexity of jobs by evaluating part jobs,
  the job-ranking method has the evaluator rank
  order whole jobs from the simplest to the most
  challenging

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Job Analysis and Design 16.

• Classification classification or grading system
  groups a set of jobs together into a grade
  classification. Then these sets of jobs are
  ranked in levels of difficulty or sophistication
• 3.2. Factor comparison methods
• Point system it is the most frequently used
  because it is more sophisticated than ranking and
  classification systems, but it is relatively easy
  to use. The point system requires evaluators to
  quantify the value of the elements of a job.

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Job Analysis and Design 16.

• On the basis of the job descriptions or
  interviews with job occupants, points are
  assigned to the degree of various compensable
  factors. An advantage of the point system is that
  it can be easily interpreted and explained to the
  employees. On the other hand, it is
  time-consuming process to develop a point system.
• Factor comparison it permits the job evaluation
  process to be done on a factor by factor basis.
  It is differs from the point method in that jobs
  are evaluated or compared against a benchmark
  of key points.

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Job Analysis and Design 16.

• Five universal job factors used to compare jobs
  are
• Responsibilities the money, human resource,
  records and supervisor responsibilities of the
  job
• Skills
• Physical efforts sitting, standing, lifting,
  etc.
• Mental efforts the intelligence, problem
  solving, reasoning, etc.
• Working conditions the environmental factors
  such as noise, ventilation, hours, heat, etc.

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Job Analysis and Design 16.

• The results of the 4 job evaluation methods can
  be used at the HRM activities such as planning,
  career planning, benefits and service programs.

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Human Resource Planning 17.

• Strategy and policy within the framework for
  management action
• Mission What is the organization for? Where is
  it going? It is general and visionary.
• Strategy The overriding mission is then
  continuously implemented by developing a
  programme of initiatives to define and achieve
  the organizations objectives
• Policy The overall mission and strategy are
  guided by a series of policies to channel
  decision and action, shaping the organization and
  providing the direction that is needed

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Human Resource Planning 17.

• Procedures procedures are more familiar to
  personnel managers than to most management
  specialists as they form the substance of much
  employee relations activity, but in our action
  framework they have the more general meaning of
  being the drills that implement the policy, so
  that a policy decision to advertise all vacancies
  within the organization before external
  advertising begins is implemented by a procedure
  to specify who does what, in what order, when and
  with what authorization, or other trigger to
  action

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Human Resource Planning 17.

• Planning Strategy, policy and procedures can all
  be coordinated and moved into action by planning.
  Not only does each stage benefit from planning,
  but a planning approach can ensure that all three
  are thought through and put into operation
  together
• Practice The final element is what actually
  happens. No organization has a procedure for
  everything, and no procedure is so comprehensive
  as to rule out the need for interpretation and
  judgment.

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Human Resource Planning 17.

• Practice is a mixture of implemented procedures ,
  ad hoc decisions, reaction to policy and the ebb
  and flow of interaction between the organization
  and its environment. The effectiveness of a
  policy can only be determined by the practice
  that ensues.

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Human Resource Planning 17.
Policy

Procedures
Strategy
Mission Practice
Planning

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Human Resource Planning 17.

• What is human resource strategy? A part of the
  organizational strategy. Human resource strategy
  involves a central philosophy of the way that
  people in the organization are managed and the
  translation of this into personnel policies and
  practices.
• Elements
• 1. Putting together the goals of human resource
  strategy ( quantity-quality needs)
• 2. Working out the action plans

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Human Resource Planning 17.

• 3. Defining the activities (replacement, career
  planning, trainings) which are needed for the
  chosen strategy, and the way of the controlling
  methods
• Human policy is a framework within which other
  people operate using their own discretion and
  making their own decision. Human policy is
  declared! Why managers try to use statements?
• 1. Clarification
• 2. Reducing dependence on individuals
• 3. Producing consistent management behaviour

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Human Resource Planning 17.

• 4. Knowing where we stand
• 5. Responding to legal and other external
  pressure
• As a policy is as good as the practice it
  produces!
• To develop human strategy the methods of business
  strategy is used. Eg. brainstorming, patterning,
  SWOT, STEP analyses

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Human Resource Planning 17.

• The content of the strategical human resource
  planning
• Strategic management decisions
  Strategic HR decisions HR planning

Investment planning What are the goals of HR? How can HRM contribute to reach the companys goals? Define the HR for the future based on the goals of the company
Organizational, market technological, planning to change Where are we now? What are we doing at the moment to reach the companys goals? Focus on the Human resource supply forecast
How to change? What kind of activities should be programmed? Action plans Where do we want to be? How can we get there? Solve the problems which were caused by the difference between HR supply and demand
When and how can we change the programme What did we do? Results What did we do? Results
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Human Resource Planning 17.

• 2. a. Types of staff number requirements
• If adequate or shortage If surplus
• Basic staff number requirement - Layoff
• Reserve staff number requirement - Retirement
• --------------------------------------------
• Total staff number requirement
• - Shortage overtime, recruitment

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Human Resource Planning 17.

• 2.b Influencing factors
• 1. Task Identification the complexity of the
  job structure type of service or product
  scheduling of the tasks, contribution
  proportions.
• 2. Work process the level of the practice
  (routine), cooperation with other systems
• 3. Technology machines, tools
• 4. The person qualification, performance of the
  coworkers, job specification
• 5. The environment companys targets, rules,
  development tendencies, worktime

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Human Resource Planning 17.

• 3. Employment forecasting techniques
• Determining techniques employees have to
  accomplish certain tasks within a certain time
  frame
• 1.a. Analytic requirements determination
• - Index number technique we match the volume
  of the tasks to the time needed for execution
  (objective)
• - Workplace technique it is not dependant of
  the volume of the tasks set plan for scope of
  activities

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Human Resource Planning 17.

• 1.b. Summing requirements determination
• - Plan for scope of activities civil service
  area set plan for scope of activities for
  different periods of time

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Human Resource Planning 17.

• 2. Stochastical techniques based on a
  mathematical procedure in which predictions of
  the dependent variables are made through
  knowledge factors known as independent variables.
  Results must always be completed by forecasts!
  Types - Regression analysis,- Correlation
  analysis, - Exponential finishing
• Problems past staff number records are often
  incorrectly regarded as number requirement
  dataChanges in production are often mistaken for
  changes in work volumeThe method requires too
  many figures from the past years

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Human Resource Planning 17.

• 3. Econometrical technique we examine statistic
  figures from the economy to be able to forecast
  the development in the future (use of computers).
  This technique is suitable to make medium and
  long term forecasts.
• 4. Simulation techniques we model different
  kinds of systems with a set of different
  variables. (e.g. standing in line)

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Human Resource Planning 17.

• 5. Estimate techniques
• 5.a. Simple estimate technique the area manager
  will forecast the employment needs based on
  his/her decision, the result is based on the
  managers judgment (subjective),
• 5.b. Expert-estimate technique an expert will
  forecast the employment needs primarily based on
  his/her decision, or expert group!
• -Delphi techniques intensive questioning of
  each expert, through a series of questionnaires
  to obtain data that can be used to make a
  reliable forecast

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Human Resource Planning 17.

• 6. Creating new jobs if the volume of the task,
  and the certain time frame are not precisely
  outlined
• 6.a. Task analysis
• - make a list of tasks
• - structure the tasks
• 6.b. Task synthesis
• - arrange the tasks according to quantity and
  quality
• Define the scope of activities for executives and
  managers

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Human Resource Planning 17.

• 6.c. Jobs independent of staff number
• - In cases none of the above is applicable a)
  the number of employees are determined by
  business policy rather than actual need b) only
  one person is needed

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Selection 18.

• Goals, criteria, problems
• Selection is the process to choose the best
  available person or persons from a list of
  applicants, considering current market conditions
• This definition emphasizes the effectiveness of
  selection, BUT! decisions taken to chose from the
  selection must also be efficient. The secondary
  purpose of selecting is to improve the proportion
  of successful employees chosen from the applicant
  list at the least expense.

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Selection 18.

• The basic objective of selection is to obtain the
  employees most likely to meet the organizations
  standards of performance. The employees
  satisfaction and skills improvement prospects are
  also sought in this regard.
• Selection criteria it will be difficult to
  select the most appropriate procedure and
  approach, and it will be difficult to realize the
  selection process. Selection criteria are
  normally presented in the form of a person
  specification representing the ideal candidate.
  There is a wide range of procedures for this
  purpose.

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Selection 18.

• Lewis (1985) suggests that selection criteria can
  be understood based on the following 3 aspects
• Organizational criteria are those attributes
  that an organization considers valuable in its
  employees and that affect judgment about a
  candidates potential to be successful within an
  organization ( e.g. flexibility)
• Functional/department criteria between the
  generality of organizational criteria and the
  preciseness of job criteria there are
  departmental criteria

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Selection 18.

• 3. Individual job criteria contained in job
  descriptions and person specifications are
  derived from the process of job analysis

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Selection 18.

• 2. Choosing selection methods Testing
• Selection methods application forms, resumé,
  references, tests, interviews
• Tests are to support selection decisions.
  Questions have been raised as to relevance of the
  tests to the job applied for and the possibility
  of unfair discrimination and bias.
• Critical features of test use
• Reliability of a test is the degree to which the
  test measures consistently whatever it is
  intended to measure

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Selection 18.

• Use and interpretation tests need to be used
  and interpreted by trained or qualified testers.
• Context of test test scores need to be
  evaluated in the context of other information
  about individuals
• Types of tests
• 1. Aptitude tests these are tests that measure
  specific abilities or aptitudes, such as spatial
  abilities, perceptual abilities, verbal ability,
  numerical ability, motor ability ( manual
  dexterity), and so on. There is some debate over
  the way that general intelligence and special
  abilities are related

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Selection 18.

• 1.a. Special aptitude tests measure an
  individuals potential, attainment or
  achievement, tests measure skills that have been
  already required
• 2. Intelligence tests sometimes called mental
  ability tests, are designed to give an indication
  of overall mental capacity. A variety of
  questions are included in such tests, including
  vocabulary, analogies, similarities, opposites,
  arithmetic, number extension and general
  information.

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Selection 18.

• 3. On the job test consist of the applicants
  doing a practical task, or mechanical test, or
  simulation
• 4. Personality tests the least reliable of the
  employment tests are those instruments that
  attempt to measure a persons personality or
  temperament. The tests based on the persons
  honesty and reliability. Psychiatrists needed for
  the tests! The problem with the use of
  personality tests is that they rely on an
  individuals willingness to be honest, as
  socially acceptable answer or the one best in
  terms of the job are often easy to pick out.

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Selection 18.

• 3. The interview
• An interview is a goal oriented interpersonal
  communication between an interviewer and an
  interviewee
• Employment selection interviews eg. provide
  general information to potential applicants for a
  specific job opening, determine whether a
  particular applicant is the most suitable
  candidate for the job

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Selection 18.

• Interview strategy
• 1. Frank and friendly strategy here the
  interviewer is concerned to establish and
  maintain the rapport. This is done partly in the
  belief that if interviewees do not feel
  threatened, and are relaxed, they will be more
  forthcoming in the information that they offer.
  The potential advantage that the interviewees
  will leave with a favorable impression of the
  company.

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Selection 18.

• 2. Problem-solving strategy a variation of the
  frank and friendly strategy is the
  problem-solving approach. It is the method of
  presenting the candidate with a hypothetical
  problem and evaluating his or her answer. These
  are sometimes called situational interviews. The
  questions asked are derived from the job
  description and candidates are required to
  imagine themselves as the job holder and describe
  what they would do in a variety of hypothetical
  situations. This method is most applicable to
  testing elementary knowledge.

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Selection 18.

• 3. Stress strategy in the stress approach the
  interviewer become aggressive, disparages the
  candidates, puts them on the defensive or
  disconcerts them by strange behaviour. The idea
  was used by some business organizations on the
  premise that executive life was so stressful, so
  a simulation of the stress would determine
  whether or not the candidate could cope. The
  advantage of the method is that it may
  demonstrate a necessary strength or a
  disqualifying weakness that would not be apparent
  through other methods.

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Selection 18.

• The disadvantages are that evaluating the
  behaviour under stress is problematical, and
  those who are not selected will think badly of
  the employer.
• Number of interviews and interviewers
• The decision about the number of the
  interviewers are based on the traditions, and the
  chosen strategy.

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Selection 18.

• 1. The individual interview gives the greatest
  chance of establishing rapport, developing mutual
  trust and the most efficient deployment of time
  in the face-to-face encounter, as each
  participant has to compete with only one other
  speaker. The disadvantages lie in the dependence
  the organization places on the judgment of one of
  its representatives, and the ritual element is
  largely missing. The individual interview is very
  popular in the selection of blue-collar staff.

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Selection 18.

• 2. Group interview two or more interviewers.
• a. Two interviewers are still able to establish
  a friendly atmosphere, but if there are more
  than two
• b. Panel interview this method has the
  specious appeal of sharing judgment and may
  appear to be a way of saving time in
  interviewing as all panel members are operating
  at once. They are not having a conversation with
  the candidates, they are sitting in judgment
  upon them and assessing the evidence they are
  able to present in response to their requests

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Selection 18.

• The selection interview sequence
• 1. Preparation we assume that the preliminaries
  of job analysis, recruitment and short listing
  are complete and the interview is now to take
  place. The first step in preparation is for the
  interviewers to brief themselves. They will
  collect and study a job description or similar
  details of the post to be filled, a personal
  specification or statement of required
  competencies and the application forms or CV of
  the candidates. If there are several people to be
  interviewed the interview timetable needs greater
  planning than it usually receives.

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Selection 18.

• 2. Interview structure
• Stage Objectives Activities
• Opening To put the candidate at Greet candidate
  by name
• easy, develop rapport Introduce yourself
• and set the scene Explain interview purpose
• Outline how purpose will be achieved
• Obtain candidate assent to outline
• Middle To collect provide information Asking
  questions within the
• structure that makes sense to
• the candidate, such as biographical,
  areas of the application form, or
  competencies identified for the job
  Listening
• Answering questions
• Closing To close the interview and Summarize
  interview, Check confirm future
  action candidate has no more questions
• Indicate what happen next and when

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Performance evaluation - 19.

• Performance evaluation is a system set up by the
  organization to regularly and systematically
  evaluate employee performance
• Performance evaluation serves several purposes
• - Development purposes it can determine which
  employees need more training
• - Reward purposes it helps the organization
  decide who should receive a raise and promotion

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Performance evaluation -19.

• - Motivational purposes the presence of an
  evaluation program has a motivational effect it
  encourages initiatives, develops a sense of
  responsibility, and stimulates effort to perform
  better
• - Legal compliance it serves as a legally
  defensible reason for making promotion, transfer,
  reward, and discharge decision
• - Personnel and employment planning purposes it
  serves as a valuable input to skills inventories
  and personnel planning

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Performance evaluation -19.

• - Compensation it provides information that can
  be used to determine what to pay and what will
  serve as an equitable monetary package
• - Communications purposes evaluation is a basis
  for an ongoing discussion between superior and
  subordinate about job related matters. Through
  interaction, the parties get to know each other
  better
• - HRM research purposes it can be used to
  validate selection tools, such as a test program

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Performance evaluation -19.

• There are further purposes, such as
• - According to Fletcher Williams
• 1. Evaluation of employees work
• 2. Evaluation of production in order to advance
  improvement
• According to Randell
• 1. Salary and wage adjustments
• 2. Promotion consideration
• 3. Improvement of performances

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• Performance evaluation types

Judge Developer
Past Future
Objective Performance increase with reward Performance increase with training
Method Classify, grade Objective, career planning
Supervisor Judges, criticizes Gives advice
Subordinate Listen, reacts, defenses Active participant
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• What is appraised?
• Personality Behaviour/Performance
  Achievement of goals
• Knowledge of the job Accomplishment Turnover
  
• Physical force Following orders Output
• Eyes-hand coordination Reporting
  problems Product quality
• Qualifications Maintenance Waste
• Business knowledge To make notes Accidents
• Ambition Keep the rules Repairs
• Social skills Work attendance Served
  customers
• Reliability Submitting proposals Number of
  satisfied
• Loyalty Non smoking customers
• Morality
• Creativity
• Leadership skills

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• 2. a. Who contributes to the appraisal process?
• Immediate manager usually has the most intimate
  knowledge of the tasks that an individual
  carrying out and how well they have been done. (
  annual appraisal)
• Managers manager can be involved in the
  appraisal process in one of two different ways.
  First, they may be called upon to countersign the
  managers appraisal of the employee in order to
  give a seal of approval to indicate that the
  process has been fairly and properly carried out.
  Second, they make the evaluation personally.

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• 3. Member of the HR department this happens
  when there is no logical ongoing immediate
  manager.
• 4. Self-appraisal there is a little doubt that
  people are capable of rating themselves. When
  employees were asked to compare themselves with
  others they tended to overrate themselves
  however, when individuals prepared
  self-appraisals for appraisal interviews they
  were more modest

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• 5.a. Appraisal by subordinates is a less usual
  approach. It is more limited in its value, as
  subordinates are only acquainted with certain
  aspects of their managers work
• 5.b. Appraisal by peers peer ratings are both
  acceptably reliable and valid and have the
  advantage that peers have a more comprehensive
  view of the appraisees job performance. They
  note the problem, though, that peers may be
  unwilling to appraise each other as can be seen
  as grassing on each other.

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• 6. Assessment centers can be used in the
  appraisal of potential supervisors and managers.
  The advantage of assessment centers for this
  purpose is that ratings of potential can be
  assessed on the basis of factors other than
  current performance. Tests, group exercises and
  interviews are used

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• 2.b. The methods
• Appraisal systems can measure a variety of
  things. They are sometimes designed to measure
  personality, sometimes behaviour or performance,
  and sometimes achievement of goals. These areas
  may be measured either qualitatively or
  quantitively.
• 1. Qualitative appraisal often involves the
  writing of an unstructured narrative on the
  general performance of the appraisee. The problem
  is that they may leave important areas
  unappraised, and that they are not suitable for
  comparison purposes

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• 2. Quantitative appraisal when they are measured
  quantitively some form of scale is used, often
  comprising five categories of measurement from
  excellent, or always exceeds requirements at
  one end to inadequate at the other with the
  mid-point beeing seen as acceptable.
• 3. Avoidance of personality measures much
  traditional appraisal was based on measures of
  personality traits that were felt to be important
  to the job. These included traits such as
  enthusiasm, drive, application and other traits
  such as intelligence. One difficulty

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• with these is that everyone defines them
  differently, and that traits that are used are
  not always mutually exclusive. Rates, therefore,
  are often unsure of what they are rating.
• 4. a. Behaviourally Anchored Rating Scales
  (BARS). The BARS approach relies on the use of
  critical incidents to serve as anchor statements
  on a scale. A BARS usually contains the following
  features 1. Six to 10 performance dimensions are
  identified and defined by raters and rates 2. The
  dimensions are anchored with and critical
  incidents

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• 3. Each rate is then rated on the dimensions
  4. Ratings are fed back using the terms
  displayed on the form
• 4.b. Behavioural Observation Scales (BOS) uses
  critical incident technique to identify a series
  of behaviours that cover the domain of the job.
• 5. Meeting objectives is to use to set job
  objectives for the coming year and, a year later
  to measure the extent to which these objectives
  have been met.

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• 6. Development of appraisal criteria this is
  include the use of the critical incident
  techniques to identify particularly difficult
  problems at work, content analysis of working
  documents and performance questionnaires whereby
  managers and potential appraisees identify (
  anonymously) what characterizes the most
  effective job holder and the least effective job
  holder.
• 7. Evaluation based on job analysisThe
  comparison of the actual performance and the
  initial job requirements. Used in small companies
  with no need/possibility of complex evaluation
  procedures.

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• The appraisel interview provides job related
  feedback to employees open communication between
  supervisor and subordinate, over viewing formal
  goals- establishing future goals, feedback to the
  employees regarding career opportunities
• Structure
• 1. Purpose and rapport agree purpose with
  appraisee, agree structure for meeting, check
  that pre-work is done

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• 2. Factual Review review of known facts about
  performance in previous period. Appraiser
  reinforcement
• 3. Apraisee views appraisee asked to comment on
  performance over the last year. What has gone
  well and what has gone less wee what could be
  improved what they liked what they disliked
  possible new objectives
• 4. Appraiser views appraiser adds own
  perspective, asks questions and disagrees, as
  appropriate, with what appraisee has said

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• 5. Problem-solving discussion of any
  differences and how they can be resolved
• 6. Objective setting agreeing what action
  should be taken, and by whom
• 3 types of evaluation interviews
• 1. Tell and sell
• -role of interviewer Judge
• - objective to communicate evaluation, and
  to persuade employee to improve
• - assumptions employee desires to correct
  weaknesses if he knows them

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• 2. Tell and listen
• -role of interviewer Judge
• - objective to communicate evaluation, and
  to release defensive feelings
• - assumptions people will change if defensive
  feelings are removed
• 3. Problem solving
• -role of interviewer Helper
• - objective to stimulate growth and
  development in employee
• - assumptions discussing job problems leads
  to improved performance

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• 3. Key to a successful evaluation system
• 1. Clear objectives what are the goals of the
  evaluation? The employees have to have a clear
  picture about the goals!
• 2. Commitment of the management management
  should participate! Evaluation forms should
  remain at the departments!
• 3. Openness, participation the system should be
  open to providing more information about the
  employee him/herself, so the employee can accept
  these decisions easier.

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• 4.Acceptance of the evaluation criteria the
  involvement of both analysts and testees in the
  identification of evaluation criteria
• 5. Training analysts need training in how to
  evaluate and how to conduct evaluation interviews
• 6. Administrative effectiveness form filling
  should be kept at a minimum!
• 7. Follow-up work plans that are agreed by
  analyst and testee need to be monitored
• 8. Culture Flexibility the system should go
  along with the organizational culture

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Labor relations 20.

• Labor relations
• Def. is a continuous relationship between a
  defined group of employees ( represented by a
  union or association) and an employer.
• The relationship includes the negotiation of a
  written contract concerning pay, hours,
  conflicts, and other conditions of employment and
  the interpretation and administration of this
  contract over its period of coverage.

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Labor relations 20.

• Primary level labor relations between the social
  partners
• Secondary level labor relations among the social
  partners and the government

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Labor relations 20.

• 2. The basic clash of interests
• Conflicts between the 2 major parties
• employer employees labor relations help to
  reduce the contradictions, and try to find a
  solution!
• Negotiation mutual interest!
• The employees can represent their interests
• The employer can accept the strategic cooperation
  of the human resources

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• 3. Participation Collective bargaining
• 3.1. Participation
• with employees as a collective is governed by
  procedures related to consultation and
  negotiation with trade unions and workers
  representatives.
• 3 basic principals
• 1. Autonomy the representative is independent
  of the management and of the electors as well

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• 2. Cooperation the representative should have a
  positive approach toward cooperation
• 3. Confidence the parties have to trust in each
  other to be able to come to a solution
• Result the employees can influence the operation
  of the organization, and the managements
  decisions as well.

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• 3.2. Collective bargaining
• is a process by which the representatives of
  the organization (the employer) meet and attempt
  to work out the contract with representatives of
  the workers (the employees).
• The content of
• 1. Conditions of employment (working hours,
  holidays, trainings, etc.)

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• 2. Income bracket ( wage/salary other personal
  allowances)
• 3. Define the values, norms, principals and
  regulations between the parties
• Result Collective Agreement