Five Outsourcing Contract Areas to Consider

When considering a partnership to outsource one or more of a company’s functions, it is important to design and analyze the contract to meet multiple business requirements. All contract points should be synergized to guide the desired outcome based on their collective outcomes.
1. Service level agreements (SLAs):
An SLA is an official document included in the master contract for an outsourcing agreement that includes a detailed description of services required and level of performance needed. When preparing an SLA, design it to meet the needs for project success in deliverables as well as financials. Set a standard when reviewing potential outsourcing partners’ capabilities and making a provider selection. Outsourcing requires a high level of trust, and only with careful planning, monitoring and execution of the SLA will success be obtained.
2. Legalities:
Hire a legal firm, or use an in-house legal expert to take advantage of his or her experience designing outsourcing contracts. Look for specific verbiage on the contract that covers risk mitigation, change orders, regional compliance issues, delegation of tasks, partial or total delegation, ownership of IP and future retention after the contract term, contract termination measures, transition of tasks, and other items that may be necessary.
3. Expertise:
The goal is to make the outsourcing process seamless – new assets are just like talent. Whether it’s an outsourcing provider’s technical proficiency, specific industry niche experience or ability to perform at the expected level, on time and budget, draw on that provider’s expertise. If the project will require ongoing compliance to changing laws and obtaining various certifications, engage an outsourcer with a proven track record. The outsourcing partner must be knowledgeable of requirements for initial project phases and have the capabilities and be forward-thinking enough to obtain what the organization needs to remain compliant and on target.
4. Milestones:
Setting milestone achievements is key in the outsourcing contract. Milestones should involve any and all actions toward specific needs. Product delivery phases, personnel deployment, fee allocations, acquiring specialized permits or certifications, obtaining government approvals and creating valuable training programs are just a few items to include when expecting milestones to be met during contract duration.
5. Backup plans:
Even after completing due diligence in selecting an outsourcing partner, an organization needs a plan B, or backup plan, as a contingency. In some cases, it may help to have a plan C. Outsourcing partners may be acquired or suffer an unexpected financial decline, even though their past financials reflect a strong position. Unexpected acts of nature, wars, embargoes, natural and man-made disasters, sudden passing of key management figures, and many other factors can contribute to a sudden change of contract plans.
Outsourcing is a necessity today. Enhancing company value to shareholders while focusing on core competencies is a daily challenge. If talent leaders monitor and balance talent assignments, equipment allocation and other assets while performing within financial constraints, with the right preparation, attention to detail and ongoing oversight, outsourcing contracts can become a key business asset.
by Richard G. Shulman | Talent Management
[About the Author: Richard G. Shulman is a director at The Training Associates.]

Managing Staffing Management

Daniel Margolis

Staffing agency Kelly Services places top talent in employment opportunities across the globe — all while developing its own internal talent.

As a staffing agency, Kelly Services operates in a space unique to its industry; its product is people. According to Nina Ramsey, senior vice president of human resources for Kelly Services, the overall company strategy as well as the company’s individual employee development plans are built around an understanding that Kelly deals in human capital.

“We ask people to connect their goals to the three strategic objectives of the company, which are all centered [on] people, profit and customers,” Ramsey said.

Kelly provides staffing services and employment opportunities globally. As with any international endeavor, it requires a fair amount of manpower to do so, boasting a workforce of 7,500 full-time employees. Ramsey spoke with Talent Management about the challenges involved in managing staff who manage staff.

TM: Describe Kelly Services’ approach to talent management.

Ramsey: As a company, strategically we made a commitment over the last couple of years toward creating a high engagement culture and [being] an employer of choice. We believe in a connection between employee engagement, customer engagement and then profitability — that whole equation. We know we need to focus on having the right leaders in place and additionally that we need to make it possible for people to grow and develop in their careers, not only for their current jobs but also for future roles. So our approach to talent management really touches every step of the employee’s life cycle while they’re with us, from the point in time that you’re sourcing and recruiting all the way to the point in time when they’re transitioning to other employment or to retirement, whatever the case might be.

TM: What processes or programs have you established to improve the performance of Kelly’s entire workforce?

Ramsey: First of all, we’ve built multiple competency models for all levels of the organization. Whether you’re an individual performer or you’re a leader of people, we have competency models that really cover all positions within the company. We developed an assessment methodology that we use for all our leadership roles. We have an extensive on-boarding program that was designed to establish an early connection to the employee as well as to reduce time to productivity. We’ve had great success with it because it’s allowed us to see an improvement in turnover for the people who go through this on-boarding program, and we’ve also seen a decrease in the time to productivity.

Right now, we’re in the process of developing career maps for every position in the organization so that people can see what their options are across the company — so not just in the group that they work with now, but in other groups down the road. We’re hoping to have a good number of those finished by the end of the year.

TM: How is performance management linked to Kelly’s strategic objectives?

Ramsey: Over the last few years, we’ve been sharing what the plan of the company is across the world through our intranet. And so our employees get a chance to see what the strategy of the company is in a concise fashion; we’ve got what we refer to as “the strategic plan on a page.” Department plans are linked to people, profit [and] customer strategy, and then we ask folks to fill out their performance plans to correspond with those three strategic objectives. And those plans are developed early in the year and reviewed at various points throughout the year — minimally at midyear, at which point we do an extensive check in on their development progress — as well as at the end of the year to evaluate overall performance for the year.

TM: What challenges impact talent management at Kelly?

Ramsey: From a technology standpoint, we’re a bit challenged in that we don’t have a single HRIM [human resource information management] tool across the world, and while we’re pleased with all of the capability that we have across the U.S., we are a global company, and we are finding it a challenge to connect all the dots across the world from an HRIM perspective. We are making progress in that manner, but we’re definitely challenged on the technology front from an HRIM standpoint.

The whole role of the leader as the most significant career coach the person will have in their journey — just establishing the role of the leader as coach — is new. So getting our leaders up to speed fast enough on what it means to be a career development coach is another challenge. We’ve had in the last couple of years, particularly with the economic challenges around the world, some limited resources in terms of rewarding developing people, and so that’s been a challenge. I don’t think we’re alone in that. Getting beyond the view that compensation is the answer to retention of top talent has been another challenge as well. Many of our leaders now understand and embrace that it’s more than just paying people enough, it’s everything you do for them from an environment standpoint and culture, as well as from a development perspective.

TM: How does Kelly work to change or create leadership and management behaviors that lead to optimal workforce performance?

Ramsey: We’re really privileged to have a talent leadership advisory board at Kelly that’s comprised of senior leaders across the company, so their prime focus is to ensure that we’re building the bench strength needed for the company.

We’ve created and launched a leadership blueprint for the company, and the blueprint is really an aspirational competency model for what it means to be a leader at Kelly today and our vision for what the leaders of the future will look like. That’s really the basis from which we’re developing selection tools [and] development opportunities and we’re making succession and transition moves for the company.

TM: How does Kelly develop organizational culture and employee attitudes to optimize workforce performance?

Ramsey: There’s been an intentional focus over the last few years on executive messaging around the strategic direction of the company and the expectations of leaders and the progress that we’re making against the strategy. We are committed to engagement surveying and action planning, and we’re open about the results and the actions that we’re taking. [We have] an increased focus on acknowledging and celebrating success where we see it happening around the company.

TM: How does Kelly use learning and development to manage talent?

Ramsey: Every employee is encouraged to have a professional development plan to begin with. In our performance management technology, we’ve got a skills assessment that’s mapped to the learning available to them. It has recommendations in it that balance out traditional ways in which one can learn via classroom and online to even on the job. We also [offer] more experience-based learning recommendations, providing development opportunities for people that we view as top talent to prepare them for future roles that we’ve identified they’d be capable of performing.

TM:
What processes or programs have you established to attract, recruit and retain top talent?

Ramsey: The on-boarding program that we implemented has been one of our most extensive efforts with regard to engagement and retention. We’ve seen a decrease by 85 percent in turnover and a 27 percent improvement in productivity with the folks who have been through that program, so it’s been very encouraging. We also launched a pivotal talent initiative a little over a year ago where we’re beginning to look more carefully at revenue-generating roles, honing in on what the customers require of those roles; what skills and capabilities are needed to perform them; [and] what do we need to do to make sure that we have the right reward strategy in place for those roles.

TM:
How do you measure workforce performance?

Ramsey: We do it through looking at individual accomplishments against one’s goals on their performance plans. We look at unit and organizational measures as well, largely either key projects that have been accomplished, whether the financial measures have been achieved, both on an individual unit or organizational level. We measure turnover and hold leaders accountable for [it, and] we measure engagement and hold leaders accountable for their engagement scores.

TM: How do you use assessments to manage Kelly’s talent?

Ramsey: Beginning a couple of years ago, we installed a leadership assessment approach for the company, and we’ve thus far looked at the top 200 folks primarily in our operational roles in the company. We’ve not gotten to all of the support staff yet, but [we have done it] in the operations area. That assessment process is comprised of some self-assessment, but also 360-degree assessment, looking at one’s current performance as well as potential. So we’ve done that across the organization, and the result of that has really told us where the common development needs are. We’re able to use that information as a basis for which we develop curriculum and implement programs around the world that will support those more common development needs.

TM: What’s next for your organization in terms of talent management and workforce performance development?

Ramsey: We intend to continue using the pivotal talent approach that we’re taking to look at revenue-generating roles and developing the right approach for selecting, developing and rewarding [talent]. We will be doing some targeted workforce planning to correspond with the strategy of the company. We’re going to do some targeted succession and development of folks that are working on key business initiatives, some folks that have been identified as top talent for successor roles. And we’re adding some additional leadership curriculum over the next several months to correspond with what we learned through our assessment pro

Daniel Margolis is a managing editor for Talent Management magazine.

Competency model for 360 degree feedback

COMPETENCY MODELS FOR 360 FEEDBACK SURVEYS

The first thing to decide is whether you want to work from an existing competency model or develop your own. Resist the temptation to re-invent the wheel. Many companies spend a great deal of time and effort creating a "unique" competency model for their 360 degree feedback program which ends up looking quite similar to our existing competency model.

If you will use 360 feedback surveys on a limited basis in your organization, consider using an existing competency model, perhaps with some minor adjustments to the evaluation form as needed.

For a company-wide 360 degree feedback program, you may want to spend some time developing a more unique competency model that incorporates your organization's leadership model and core values as well as the behaviors and performance standards that are expected of all employees.



Establishing the Core of your 360 Competency Model

Some aspects of your competency model will be the same for all employees, regardless of function or level within the organization. Call this your "core". The core of your 360 survey will include the following:

Items related to company values, mission, and vision

Competencies and expectations that apply to all employees, from the CEO down to the individual contributor.

Many competencies or behavioral categories will apply to employees at all levels, but the specific behaviors in each area will often differ. For example, "Interpersonal Skills" are important for everybody, but the expectations and requirements related to "Interpersonal Skills" will be quite different at different levels in the organization.

Other competencies will only be relevant at certain levels. For example, "Building Talent" is an important area for mid-level management and above, but not at all relevant to non-managers.

Beyond the Core

It is less important to distinguish between functional area, especially for mid-level management and above. Focus on identifying 3 or 4 distinct vertical levels within your organization. For example:

1. Senior Leaders
2. Mid-upper Managers
3. Lower-level / First-line Managers
4. Individual Contributors (Non-managers)

For each of the 3-4 levels, the competency model will start with the "core", but also include the specific behaviors needed to succeed at each level.

Remember - don't reinvent the wheel. As you develop your competency models, reference our standard competency model as it will help you fill in the gaps as you create your own. The top-level categories will be based on statistical analyses and field experience. They are:

- Knowledge/Strategic
- Character
- Interpersonal
- Innovation/Change
- Building Talent
- Leadership/Motivation
- Execution

Different Competencies for People at Different Levels

If you are developing a 360 survey that will be used by people at different levels within your organization, the mix of categories and items will vary quite a lot across the various levels. It might help to think about the different levels in terms of the requirements for success in the following three areas:

Vision, Strategy, Inspiration

- Upper levels should include a lot of detail in this area.

- Middle levels should include some items in this area, but not too many. This is an opportunity to help people see what they will need to succeed at the next level, and also an opportunity for you to identify high potentials for promotions. Some degree of inspiring and motivating is relevant for anybody in a management role.

- Lower levels, especially individual contributors, should not include items in this area.



Teambuilding and Relationship Building

Upper levels should include a lot in this area, but some of the things that are included for mid-level might be excluded here. You do not have to be as thorough with regard to basic skills. Instead, focus more on support and relationship building at a higher conceptual level, and creating strategic alliances with other parts of the organization.

Middle levels should include a lot of detail in this area with regard to people-skills, team management, and fostering team effectiveness.

Lower levels should include a reasonable amount here, but look for areas that don't include things that are only relevant for higher levels. Include things related to working with others, cooperating, listening, and supporting team efforts.


Task Management and Execution

Upper levels should include items that are more focused on achieving results - they would not have reached the upper level if they had not been successful at the basic skills when they were at a lower level.

Middle levels should include quite a lot here, but some of the most basic items could be excluded.

Lower levels should include a lot in this area, focusing on the basic, fundamental skills of task management and job performance.

When you are finished, you will have 3-4 competency models along with a list of survey categories and items for each one. By following these steps, you will have a vertically integrated approach that uses a common core across all levels, but that also maps out a progression from the bottom of the organization to the top.


Here is an example of how a specific category might apply across all levels of the organization, but vary in its nature, depending on level:

Teamwork

Upper Levels

Encourages cooperation and collaboration between business units
Establishes partnerships at all levels to achieve results

Middle Levels

Resolves conflicts among team members
Sets clear, achievable goals for all team members to follow

Lower Levels

Works effectively to achieve team goals
Cooperates effectively with team members

What Engagement Means for learning leaders

What Engagement Means for Learning Leaders
by Daniel Margolis | Chief Learning Officer
 
Employee engagement is often thought of as more of a talent management issue than a learning and development one, a variable ultimately facilitating productivity and retention. But according to Gershon Mader, who, with co-authors Josh Leibner and Alan Weiss, wrote the book The Power of Strategic Commitment: Achieving Extraordinary Results Through Total Alignment and Engagement, engagement has a crucial takeaway for organizational learning and development, as it allows learning programs to thrive via a environment where innovation is encouraged and workforce buy-in is more total.
 
To develop this sort of environment, Mader stressed the importance of not just bringing about an open organizational culture but also tearing down hierarchical divisions that may exist in companies.
 
"Making sure that you're creating an environment that does cultivate innovative thinking, where people do feel that no matter where they are in the organization chart - the hierarchy of things - that if they've got some brilliant thoughts and ideas they are able to voice them, be considered, and even influence things through them, that becomes even more critical in a learning organization where the ability to think freely and innovatively is quite often key to success and the quality of programs," Mader said.
 
"There is a lot of frustration as you go further down in an organization," he said. "There is a frustration among the lower ranks that their value is based on their rank and that [for] someone who is on a lower level but has some really brilliant ideas, it's more difficult to be heard, to make a difference, to contribute. And when people are in that kind of environment, after a while, they quite quickly become resigned about all that stuff and they go into [a mode of] going through the motions - doing the minimum that's required - and it definitely has an effect of lower-quality learning programs."
 
Mader also stressed the importance of leading by doing with respect to engagement. "Any learning organization needs to be a demonstration of whatever it's teaching," he said. "And often there's a dissonance there. Organizations are widely criticized [for] not doing some of the stuff that they are preaching down to organizations, and therefore they lose their credibility and ability to make a difference."
 
Mader, Leibner and Weiss have developed the following employee engagement dos and don'ts:
 
Do:
 
a) Actively ask for input from all departments and levels.
b) Promote and incorporate others' ideas.
c) Ask your staff what they would start, stop or continue doing in your position.
d) Routinely balance out your meetings by discussing both strategic and tactical issues.
 
Mader spoke to the learning benefits of this kind of inclusiveness. "The products and the services that learning organizations produce need to make a difference with different customer bases," Mader said. "The more the organization really engages its stakeholders and customers upfront to make sure that what they're designing and doing is really in sync with the needs, priorities and commitments of other departments, the more powerful what they're creating will be."
 
Don't:
 
a) Make strategic development an exclusive club limited to the higher-ups.
b) Stifle strategic thinking by not being open to and acting on others' feedback.
c) Try to maintain control by micromanaging.
d) Solely focus on an encourage tactical thinking in meetings.
 
According to Mader, such missteps mean a great deal of missed opportunities. "A lot of experience, expertise [and] ideas don't get invited to these conversations, even though [the employees] and their superiors know that that's probably a wise thing to do," he said. "It produces resentment [and] frustration [and] goes into people going through the motions, getting more in a mode of compliance."
 
This, Mader cautioned, is the ultimate result of neglecting employee engagement: people mentally "checking out."
 
"Then you've got highly skilled, knowledgeable and passionate people who don't bring their heart to the game; they don't bring the passion," he said. "They'll sit in meetings and pick their battles, not bring up innovative thoughts, definitely not stuff that they would think may not be accepted, would be outside the box or outside of the common way of thinking - outside the way they access or evaluate what their boss or boss' boss likes or doesn't like. So there will be no productive, constructive conflict in the organization, creative conflict. It'll be more like a yes-man kind of mentality, where people follow [and] say the right things, what they know will be accepted. In essence, it weakens the organization."
 
 
[About the Author: Daniel Margolis is a managing editor for Chief Learning Officer magazine.]

Lessons From 'Outsources'

by Deanna Hartley | Talent Management
The global nature of business today oftentimes entails overseeing teams comprised of foreign nationalities – a reality that has spawned “Outsourced,” an NBC sitcom that documents the journey of a manager whose department gets outsourced to India.
“I worry about people seeing the show. Because it’s in India, they somehow would think there are different rules in India about managing human behavior – and there aren’t,” said Aubrey Daniels, author of Oops! 13 Management Practices That Waste Time and Money.
The core management principles that enable employees to perform effectively are the same, regardless of geography, he explained. Bosses on shows such as “The Office” and “Outsourced” amuse audiences because they are often clueless as to why they can’t influence their direct reports to behave in certain ways. According to Daniels, this is because they take a one-size-fits-all approach to workforces.
“Any time you try to reinforce everybody with the same thing – whether it’s something you say or something you give them – you’re going to be in trouble, because what’s positive to one may be negative to another,” he said. “In ‘Outsourced,’ there are going to be lots of occasions like that, where the American is going to try to reinforce everybody with ‘steaks [are] on me’ – and that may not go over very well.”
Here are a few tips for managers of global – or even local – teams to improve performance.
1. Learn employees’ positive reinforcers.
“You could pat somebody on the back and not increase whatever they’re doing, so that would tell you that’s not a reinforcer,” Daniels said. “We need to look at behavior to see the impact of what we do. If I’m going to have a good relationship with you, then I’m going to have to pay attention to you; I’ve got to watch your behavior and how you respond to things I do.”
In an organization, this may entail setting up candid one-on-one meetings with direct reports.
“We sit down with [the employee] and say, ‘Tell me what’s important to you, what you’re trying to accomplish here. Why did you come to work here? What do you want to accomplish for yourself short term and long term?’” he said.
Doing so not only empowers the individual to contribute his or her best to the organization, but also helps managers develop a good working relationship with direct reports.
2. Pinpoint behaviors that add value.
Throwing out ambiguous statements, such as ‘We want you to take more initiative,’ doesn’t serve to improve employee performance, Daniels explained.
“We want to determine what drives the result we’re trying to accomplish, and we find over and over again that managers don’t know what it is, as basic as that seems,” he said.
For this reason, it would behoove managers to pinpoint behaviors that add value and be specific when communicating them to their direct reports. In a sales situation, it may be setting up meetings with prospective customers, writing proposals, etc.
3. Graph employee progress.
Graphic feedback – or feedback plotted on a graph or chart of some sort – allows managers to track the progress of individuals or groups, Daniels explained.
“The value of a graph is you can see small changes in behavior, which allows you many more opportunities to reinforce them than if you’re not tracking it,” he said. “Other people seeing that can comment on how well you’re doing, so you can get social reinforcement as well as reinforcement from the boss.
For example, graphically tracking the frequency of customer contact in a given week may help a bank strengthen its relationship-banking efforts.
4. Reinforce behaviors that contribute to progress.
Tangible business results aren’t immediately obvious. For example, it may take the aforementioned bank a month to begin to detect an increase in sales.
“The problem is, if you didn’t get some form of recognition for the effort you were making in contacting the customers, then in four weeks your effort would diminish because the results are lagging the behavior,” Daniels said. “If you know that contact with customers is going to increase sales, then your job as a manager or supervisor is to make behaviors get enough reinforcement to keep them going until such time as they begin to see [an] increase in sales.”
5. Celebrate results.
Managers typically commend their teams for a job well done by calling them together, telling them how well they performed and providing something tangible, such as cash incentives or time off.
“We talk about a celebration as an opportunity to relive an accomplishment,” he said. “The celebration should be employees talking about what they did to create that result. That’s their reinforcement because it allows management to see how smart they are, how hard they worked, how difficult it was, etc.”

Ready Set Innovate

Innovation sits at the top of most corporate priority lists today. Faced with a challenging business environment, bosses want more creative products, ideas and solutions to remain competitive. But when it comes to making innovation happen, most simply don't have a clue.
 
Many employees simply shut down and eventually stop trying to come up with new ideas and products, said Josh Bernoff, co-author of Empowered: Unleash Your Employees, Energize Your Customers and Transform Your Business. The cause for their lethargy? A lack of tools to make innovation happen and managers who, often despite good intentions, obstruct their ability to develop new ideas.
 
"Then the CEO says, 'How come nobody in our company comes up with any ideas?' You've trained them that's a bad idea," Bernoff said. "That's a bad thing if they come up with an idea. If they ever did, they certainly wouldn't tell you."
 
The key to making innovation happen isn't setting the direction or making sure that innovation is a priority, it's ensuring that all employees, especially those on the front line, are empowered to solve customer problems. So why aren't companies doing it? It strikes right at the heart of how companies are run, he said.
 
"You can build a strategy around empowering employees to solve customers' problems - but it will challenge your organization from the inside," Bernoff said. "Freeing employees to experiment with new technologies, to make high-profile decisions on the fly, to build systems that customers see, and to effectively speak to the organization in public is not something most corporations or government agencies are accustomed to doing."
 
Open Up Management and Technology
 
Idea generation and innovation are simply not aligned with most employees' goals and daily responsibilities. Traditionally, most strategy comes down from above and managers spend their time telling workers what their jobs are and, in many cases, how to do them. IT departments don't help, either. According to Bernoff, more than one-third of workers are using technology that is not sanctioned by their company for their job, such as downloaded software or online social networking sites.
 
"Consumers these days are so empowered with technology, they move so rapidly, change the technologies they're using - whether it's mobile, video, social - that you really can't serve their needs with a top-down organization anymore," Bernoff said. "The same technologies that are empowering consumers are also empowering employees. It's really easy and cheap now to sign up for Twitter, to start a customer community, even build a mobile site."
 
"You can't succeed unless you encourage them, support them and manage that as opposed to squash it, shut it down and tell them it's not permitted."
 
Find and Celebrate HEROs
 
It's a common misconception that organizational change needs to start at the top in the lofty reaches of the corporate C-suite.
 
"Change actually starts from the bottom," Bernoff said. "You just need to find one of these projects and do what's necessary to clear the obstacles out of the way."
 
Talent managers play an important role by locating what Bernoff calls HEROs - highly empowered and resourceful operatives. When they find them, managers should elevate their visibility by giving them awards and recognition and communicating the results of their innovations so the rest of the workforce understands the company supports their initiative.
 
"That goes a long way," Bernoff said. "People look at that and say, 'You know what, if he can do that, maybe I can do that, too.'"
 
Companies can begin to break down the barriers to innovation by starting small. It's a bad idea to start with the company's biggest product or biggest customer group. Bernoff recommended starting with something that is not so risky.
 
"So just like anything, these things can pick up speed," he said. "The people who build these projects - these HEROs - they become important in identifying how to change the company. You want to put in processes that support innovation in a more deliberate way. If I have an idea, what should I do? You can put a process in place where that can go through and get evaluated."
 
Bernoff points to power tool maker Black & Decker as an example of how empowered employees with the right tools can make a difference. Rob Sharp, head of sales training for Black & Decker, gave Flip video cameras to salespeople and asked them to record ideas from the field. This simple idea quickly generated sales tips and helped the sales team work more efficiently.
 
"They have cut the amount of training down from two weeks to just a few days in the office because they say to trainees, 'Before you come in here, go over here and look at these videos, and then when you come in, we'll be ready to go,'" Bernoff said.
 
While empowering employees is key, it's important to get managers to understand how to do it.
 
"You have to tolerate some failures," Bernoff said. "You need to look at your job as being to clear away obstacles. These things typically reach across boundaries and raise all sorts of questions that a person doesn't typically come up with. That sort of discipline and management is a little different.
 
"If your problem is that you don't trust the customer service people to do their jobs and that if you give them access to these tools, they'll be fooling around all day long, that's management problem. That's not a technology problem."
 
 
[About the Author: Mike Prokopeak is editorial director for Talent Management magazine.]

360 Degree feedback

360 DEGREE PERFORMANCE APPRAISAL

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

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.



360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms.

Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. Individual responses are always combined with responses from other people in the same rater category (e.g. peer, direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses.

360 Feedback can also be a useful development tool for people who are not in a management role. Strictly speaking, a "non-manager" 360 assessment is not measuring feedback from 360 degrees since there are no direct reports, but the same principles still apply. 360 Feedback for non-managers is useful to help people be more effective in their current roles, and also to help them understand what areas they should focus on if they want to move into a management role.


360 degree appraisal has four integral components:

1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.

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

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



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

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

Companies typically use a 360 feedback system in one of two ways:

1. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective

When done properly, 360 is highly effective as a development tool. The feedback process gives people an opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs.


2. 360 Feedback as a Performance Appraisal Tool to measure employee performance

Using a 360 degree feedback system for Performance Appraisal is a common practice, but not always a good idea. It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360 feedback focuses on behaviors and competencies more than on basic skills, job requirements, and performance objectives. These things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 feedback into a larger performance management process, but only with clear communication on how the 360 feedback will be used.


360 Feedback Survey Measures..

- The behaviors and competencies
- 360 assessments provide feedback on how others perceive an employee
- 360 feedback addresses skills such as listening, planning, and goal-setting
- A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness


The ins and outs of leave travel allowance

The whole object of travel is not to set foot on foreign land; it is at last to set foot on one’s own country as a foreign land.
— G K Chesterton

To be in sync with the quote, which expresses the importance and pleasure of exploring your own country, the government too wants to promote inland tourism. Accordingly, it has provided for tax benefits in respect of leave travel allowance (LTA) received from your employers.
Here, I will explain the present provision of LTA.
This tax benefit is available only to employed persons, not to self-employed ones. You can claim tax benefits on the LTA received from your present or past employer on fulfillment of certain conditions.

The exemption can be claimed under two conditions — first, you can claim it when you are continuing in your present employment and proceed on leave to any place in India.

The other condition is when you travel to any place after
your retirement from the services or on termination of services.
This benefit on retirement can be claimed every time you leave one employment and move to other location to take up another employment. So the retirement for this purpose not only includes the mandatory retirement on reaching the age of superannuating, but also includes leaving one employment to take up another employment at different location.
For whom you can claim LTA? You can either travel alone or with your family. However, no LTA benefit can be claimed for your family if it travels without you.
Moreover, you need to be on leave on the days of travel. You cannot claim the benefits of LTA in respect of your spouse or children if you take them along with you on your official trip, this is when you are not on leave.
Family for the purpose of claiming LTA exemption includes spouse, children whether dependent on you or not and parents, brothers and sisters who are wholly or mainly dependent on you.
The income-tax law provides that you can claim this LTA exemption benefit in respect of two children only.
How frequently can you claim it? You can claim LTA exemption twice in the block of four calendar years. This block is not calculated with reference to commencement of your employment but is predefined by the law.
The current block has begun from January 1, 2010 and will end on December 31, 2013. The next block will be from 2014 to 2017, and so on. It is not necessary that you claim the LTA exemption in alternate years, what is required is that you can not claim it more than two times in the defined block of four years. In case you and your spouse both are working, your family can travel every year and claim the tax benefit of LTA every year for two different calendar years in case of both of you. The only restriction is that you can not claim LTA exemption for the same journey.
Can LTA benefits be carried forward? What if you could not fully claim LTA / LTC exemption for some reason during the block 2006-2009? It can be carried forward to the first year of the next block of four years. Thus, in the current block of 2010 to 2013, you can claim the benefits of your arrears of LTA during the calendar year 2010 without affecting your right to claim two LTA exemptions in balance three years of the same block.
What amount can be claimed? The tax benefit is available only in respect of cost of transportation incurred by you on travelling in India. It is not available for expenses of stay in hotel or local conveyance for sight seeing etc.
In case you are going on a foreign trip, you can claim the expense of travel from your place to the point of departure from India for undertaking the foreign travel and back.
The exemption is restricted to actual expenses incurred by you in undertaking the journey from the starting point to farthest destination. However, there is a cap on maximum amount you can claim in respect of LTA exemption. The restrictions are dependent on the mode of transport (see table).
If there is no such recognised public transport system operating on that route, you can claim a fare equivalent to air-conditioned first class fare for the distance between your place to the destination by shortest rail route.
The exemption is available for the farthest place by shortest route when a circular journey is undertaken.
Do you need to preserve proof of your travel? You need to preserve the tickets to claim this income-tax benefit. If you hire a car, the receipt/ invoice from the travel agency or car rental agency is considered valid proof. Even if your employer does not verify and collect the proof of the expenses in respect of LTA, you are under obligation to produce it before the assessing office at the time of your income-tax assessment.

The writer is CFO, ApnaPaisa.com, a price comparison engine for loans, insurance and investments. He can be reached at balwant.jain@apnapaisa.com

Is the LMS dead?

Web-based learning and collaboration tools are driving a new breed of learning management.
 
Social networking, Web 2.0 tools, online collaboration - these are all concepts that have forever changed the technology world and the way we interact with each other online. These solutions also represent a significant milestone in the evolution of learning management. As a result, the learning management system (LMS) has been reborn to include social networking and collaboration tools that capture informal learning and foster internal collaboration.
 
Learning management has evolved in both of these areas to drive workforce productivity and innovation; facilitate information sharing and employee collaboration; and extend formal, informal and just-in-time learning initiatives across the enterprise.
 
Social Networking and Collaboration for the Workplace
 
By breaking out of the traditional "formal" and "informal" learning silos - and embracing the synergy that exists between these two areas - organizations open themselves up to potentially greater results, including more productive employees, shorter time to competency for new employees and partners, and more engaged employees.
 
To do this, LMS solutions have been "reinvented" to incorporate the best social networking, Web 2.0 and collaboration tools alongside powerful LMS capabilities. Social networking and collaboration tools provide organizations with an easy way to connect employees to each other, direct access to information and an environment for them to contribute to the content. These types of tools can help bridge the gaps between traditional or formal learning and less tangible, user-driven, informal learning.
 
In today's "new" LMS, user-driven content should be able to be shared, enhanced, commented on and rated, with the goal of increasing workforce efficiency and productivity. Learners should be able to post questions, documents and best practices and also be able to locate subject-matter experts and information quickly and easily. These shifts in functionality serve to not only make learning more social, but also complement the formal learning capabilities found in traditional LMS solutions.
 
Delivering Learning Using Web 2.0 Technologies
 
Beyond using Web 2.0 and social networking solutions to foster collaboration and capture informal learning, organizations are starting to think about the suitability of learning delivery platforms. For example, just because various types of learning can be delivered via podcast doesn't mean that podcasts are the right format for every learner or topic. Similarly, just because a learner could find the answer to every question on a blog doesn't mean that he or she will.
 
New technologies primarily fall into two categories: Either they replace something we already have, or they add new capabilities. For example, in the 1970s, e-learning took place on mainframe computers. In the 1980s, the transition to the first PCs took place. PCs were cheaper, had better graphics and were more accessible to move training departments, so they became the replacement platform. Next, interactive video via videodisc was introduced into computer-based training (CBT). Although the videodisc died very quickly, the idea of using video in e-learning grew and eventually became an additional capability.
 
A similar type of phenomenon has occurred on the instructional design and learning management side of e-learning. The question we need to answer now is how do all of these new technologies and innovations impact learning, and how do we best use them? In order to do this, we should take a look at how a couple of these technologies evolved and why.
 
How Did We Get Here?
 
In the 1980s, before networks, corporations kept track of training either in books or in a training management system (TMS). Students would actually log into the content itself, and at the end of the course, someone would print out the student record and manually add it to the TMS as part of the learner's record.
 
During the 1990s, companies realized that having all student records in one place along with the ability to launch and track content was important. This was the basis for the modern-day LMS. Over the next decade, the LMS industry took several questionable turns based on what people believed should be included in terms of functionality. Some of these decisions included content authoring and Web conferencing capability. In both cases, the industry was trying to solve a compatibility problem by forcing two different software applications to be part of one. Although some companies sold these combined products successfully, the stand-alone tools were always more powerful and more effective than the combined applications. Eventually, the industry accepted that authoring and conferencing were not really part of the learning management process - although the resulting content produced from these activities needed to be managed within an LMS.
 
In 2000, the e-learning industry began a new era with the introduction of the Sharable Content Object Reference Model (SCORM). SCORM was promoted as the interoperability solution between content and LMSs. Although the Aviation Industry Computer-Based Training Committee (AICC) standards and other e-learning standards has existed for years, none of them had ever proposed an instructional design strategy or had been as quickly adopted as SCORM. The SCORM book described how you could design content in small, reusable pieces of instruction that could be shared between companies and in multiple courses.
 
As a result of the industry creating all of these small pieces of instruction, the need for a new technology emerged in order to create and manage them. This was the beginning of the learning content management system (LCMS). The LCMS was designed to help create and manage all of these content objects and then reassemble them into new courses.
 
Where We Are Today
 
With the introduction of each new technology and methodology, our industry is trying to make things more efficient and more effective. However, we can't increase the rate at which a learner consumes information, so now the object is to make it more available.
 
This is where formal and informal learning and performance management enter the picture. It is important to acknowledge that every industry, subject and learner has a "best" way to convey whatever knowledge the learner must know. This best solution can range from access to a blog at one end of the spectrum to months in a simulator at the other end of the spectrum. No matter the delivery medium, you first must know who the learners are and what they need to know.
 
Learning management is about connecting the dots between what the learner already knows and what the learner needs to know in order to meet the requirements of his or her job. Learning management has nothing to do with the creation of raw media - though the data collected within an LMS often can help identify areas for new instruction content. The final link is with individual performance; a performance management system provides insight into how a learner performed on the job as well as how others perceive that person's performance.
 
The LMS Is Not Dead - Just Different
 
Regardless of the content and formats available, most jobs require not only that training be documented, but also that learners actually prove that they know the material via a test or simulation. This is what learning management is about.
 
Many companies are actively integrating podcasts, online forums, wikis, blogs and new hardware such as iPhones and BlackBerrys into both formal and informal training. The important thing to remember is that all of these new technologies are simple adding capability to existing practices that already occur within our daily lives. For example, while forums and blogs have often been compared to the informal conversations around a water cooler, neither will ever actually replace those water cooler discussions. They do, however, extend the conversation beyond the water cooler with the added benefit of being able to share it with others.
 
Unlike the early years where people were trying to combine learning management with authoring, the use of learning management to guide individuals toward appropriate sources of informal learning makes sense. For example, having an LMS allows a company to guide employees taking similar courses to the same location. Another example is the ability for an employee to find a blog or wiki written by someone with the same job position at his or her company.
 
The LMS has evolved to enhance social networking and collaboration on a broader scale. By embracing and encouraging adoption of these technologies, learning organizations have a significant opportunity not only to deliver learning in new ways, but also to pair informal learning with formal training, drive improved productivity and deliver increased value to learners.
 
Webjunction Builds A Social Learning Community
 
Supported by grants from the Bill & Melinda Gates Foundation, online community WebJunction is a unit of the Online Computer Library Center (OCLC). Library staff and affiliated organizations can gather to solve problems, share knowledge and network with each other.
 
Since its launch in May 2003, WebJunction has provided its nearly 50,000 members with convenient and cost-effective access to online courses and continuing education certification. To date, WebJunction community members have used the site to take more than 30,000 courses.
 
"By blending social communication with marketing communication and competency-based learning content, we are filling a critical need for libraries - particularly small and rural libraries that may not have access to continuing education in other formats," said Linda Lewis, WebJunction's product manager.
 
In 2008, faced with a rapidly growing audience and expanding range of content, WebJunction recognized that it needed to make it easier for users to navigate its course catalog and improve scalability of the site to accommodate increased traffic and new audiences. In addition, WebJunction saw value in creating a centralized, interactive online community for members and users that would bring together the fragmented library field and allow them to engage in discussions, participate in groups, share content and partake in collaborative learning with colleagues and peers.
 
Selecting the LMS
 
"Our mission was to aggregate information to help libraries help each other," Lewis said.
"We had some rudimentary social networking features and a basic LMS, but we wanted to have a scalable platform with more robust community features."
 
WebJunction executives recognized the need for a platform that integrated the features of social community sites and virtual meeting spaces with content and learning capabilities. The initiative required a system that would provide a community experience, including features that would allow for group spaces and a way for individuals to add content to the site. The solution also had to integrate with OCLC's e-commerce solution for payment processing, as well as with WebJunction's own social functionality and content management tools built using Liferay, an open-source enterprise portal solution. Ultimately, WebJunction chose Plateau Systems to be its LMS provider.
 
Since the launch of the new social learning community, WebJunction executives have found that the LMS has allowed them to respond to industry changes and to the breadth of content necessary for meeting the diverse requirements of public and academic libraries as well as state agencies; K-12, law, medical and corporate libraries; and international users. The system allows individual courses to be purchased or libraries to purchase bulk courses through the WebJunction catalog.
 
"Some customers open their catalog to all members; some have strict controls on who may enroll in their courses," Lewis said. "But while our partners can set access permissions the way they want, it's all still being managed by the LMS - and there's a global catalog."
 
Winning Buy-In
 
In one year, nearly 7,000 individuals have enrolled in WebJunction courses, and there are now more than 600 titles, which are mapped to library-specific competencies within the globalized catalog.
 
Lewis said the biggest advantage is that the entire process is seamless.
 
"The interface is always WebJunction. Members just click on courses or competencies and connect to the learning content," she said.
 
Further, once a member clicks on "My WebJunction," he or she can see updates on friends' activities and on relevant content. And by clicking on "My Account," the member can view all his or her courses, comments, activities and affiliations.
 
"It really blends social, learning and marketing content so that it works for the members, for us and for our partners," Lewis said.
 
Creating a Sustainable Platform
 
In addition to the flexibility to grow and evolve along with the needs of the WebJunction community, the LMS also has had measurable business impact. For example, the platform has allowed WebJunction to reduce its support time from 72 hours to two hours, and 100 percent of administrator training is now done with self-paced or instructor-led online learning rather than face to face, further adding to cost savings and resource optimization.
 
 
[About the Author: Ed Cohen is chief technology officer of Plateau Systems, a provider of Web-based software for developing, managing and optimizing organizational skills and talent to increase workforce productivity and business operations performance.]

Appraisal Method

TRADITIONAL METHODS


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


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


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


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


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




6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.


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


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



MODERN METHODS


ASSESSMENT CENTRES -

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

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



BEHAVIORALLY ANCHORED RATING SCALES

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

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


HUMAN RESOURCE ACCOUNTING METHOD

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

Total reward defined

Total rewards embraces everything that employees value in the employment relationship. It integrates a number of classic human resources disciplines and adds some not-so-classic ones. 
Sandra O'Neal, Towers Perrin (1998). 

More and more, we are all recognising that in order to differentiate our own organisation from others in the jobs market it is necessary to offer more than just a good salary and pension. The past few years have seen an increase in the development of total reward programmes by benefits consultants. In an era of skills shortages, potential recruits and existing employees are becoming more sophisticated in seeking a more congenial work-life balance. 

This bulletin summarises the Executive Briefing, Total Reward, which provides a comprehensive introduction to the concept and offers practical tips and real-life case studies. In the current climate - full employment, a shortage of workers with key skills, and a more mobile workforce - employers have to ensure that they stand out from the crowd in order to be seen as the employer of choice. It is clear that each organisation needs a tailor-made system to address its particular needs, and that a 'one size fits all' approach will not succeed. Therefore it is critical for all employers to review and enhance their total reward offerings. 

Of course, there is nothing new in asserting the importance of non-financial factors in motivating people. Cash-constrained public and voluntary organisations have for years been forced to come up with creative and broadly based reward packages to attract and retain staff who could earn more money elsewhere. Even blue-chip employers with generous and expensive, but uniform, pay and benefits packages have found that not all, or even most, employees are satisfied. 

The trick is to maximise the perceived value of the rewards at an equivalent and acceptable cost to the employer. But, so far, few employers have made the switch from a traditional pay scheme to a total reward system, largely because of the daunting task of making such a wholesale change. The few organisations that have made the change have done so mainly because of outside pressures - for example, to harmonise benefits following a merger or take-over. 
Key findings 

The organisational benefits that flow from a total reward scheme are: 

* easier recruitment of better-quality staff 
* reduced wastage from staff turnover 
* better business performance 
* enhanced reputation as an employer of choice. 

Conclusion 

The psychological contract between employers and employees requires trust on both sides. The provision of a total reward scheme demonstrates that the employer takes into consideration the needs of the individual employee and is prepared to be flexible in meeting those needs. The employee also feels to some extent in control by being able to select various options from a range of benefits. 

The summary of the literature and of approaches to the concept shows that cost and efficiency are also important drivers of the total reward approach. We all want different things from our jobs at different stages in our lives, and we all place different values on what our work and employer provides. At certain times we may be able to concentrate on the luxury of job interest and personal development, while, at others, security and paying the mortgage are paramount. All of these factors are documented, and Total Reward promotes a 'total reward' way of thinking to address these various personnel issues in your organisation. 

In our global knowledge- and service-oriented economy, CIPD research clearly demonstrates that people are potentially the most valuable and powerful source of sustained competitive advantage. But in an environment of continuing and widespread skills shortages, increased diversity and changing social values and expectations, people are also the most difficult asset to manage. They walk out of your office door each evening. Voluntary commitment and engagement underpin business success and are at the heart of a total reward approach.

Recruitment and Selection

There is some ambiguity when it comes to recruiting and knowing what and what not to do. Is it right to only let the ‘ideal’ people to join your team? Or should you consider recruitment in your business to be like an adding game of numbers? The answer is simple, and the comparison of recruitment and hiring an employee is written clearly for you below. It has been a while since we’ve updated you with new content, so here it is as promised, right during the holiday season!



The Differences:


Spotting them: An employee is found using a job description and specification, usually displayed in a job advert. Recruitment on the other hand is usually done in person, over the phone or face to face. It is common for recruitment to be done online, but this has some set-backs especially if the recruit is not located near you.


Reeling them in: For hiring, an employee will respond and apply for the job. However for recruitment, it is up to the consultant (that’s you) to find the right people for your team and to get them interested about the opportunity (and to sign up).


Selection process: Whilst most businesses look for the best candidate, direct sales looks for anyone. That is because in this industry training and resources are immediately provided. In addition, it is up to the person to achieve their goals. Even some of the most coy or less experienced people, can turn into real go getters.


The Benefits: When hiring it’s all about the remuneration and pay. When being self-employed it is about discounts, commission, bonuses, extra incentives like a company car/ holiday – and naturally working from home at your own pace and hours!


Expectations: When hiring an employee you can expect the most from them. For direct sales or party plan you cannot expect anything from them. All you need to do is make sure you’re there for them. To do this supply your contact details and keep them updated on company news, even if they’re not performing. It is common for a team of consultants to do poorly in their first year.


So the idea is numbers and adding more great people to your team. Remember to select people that will grow, motivate others and become great achievers. This is when selecting the right prospects. However, if someone or anyone wants to join your team and they’re generally a good person – let them! You never know who will be your next platinum seller or a sitting duck

Effective Communication in Performance Management

Prerequisites for Successful Communication of Vision, Mission and Core Values

Many organizations have their Vision, Mission and Values and are very proud of it.

But how many organizations do actually align their actions to the vision and values set? How many company actually communicate the vision effectively to their key stakeholders? Organizations do generally communicate their vision, mission and values to key stakeholders, especially to the employees But most often then not, many employees are not able to grasp a good understanding of the concept.This is made worse by the actions of the organizations which could be contrary to the values stated.

Organizations spend many hours of the leadership time to develop the vision, mission and values. Hence, it is important for the organization to provide a powerful meaning to the Vision, Mission and Values.

The following 5 Prerequisites are mandatory in order to give life to the organizations visions, missions and values:-

A. Strategic Planning Process

Successful organization will have an annual Strategic Planning Process (SPP). This is normally done off-site and attended by the senior management team. The senior management team normally meets for at least two days to discuss among others customer satisfaction results, external environmental factors such as market trends, economic data and other relevant data The intent here is to review, analyse and align the input data to the vision, mission, values and core competencies. SWOT analysis is a common tool used during the strategic planning process. Gaps identified during the SPP will be used to develop short and long term action plan. For effectiveness, it will be good for each senior manager to become a champion of the action plans. They can then form cross-functional teams to implement the plans.

B. Deployment of Vision, Mission and Values to the Employees.

This is a very critical part in ensuring the success of the Vision of the organization. Most companies do not do well in this area. For effective deployment, it is suggested, that the organization develop a standard communication process for the whole organization. The process should include among others identify audience, communication channel ( training, meeting, bulletin board posting, e-mail and etc.) and the person who will do the communication. The communication shall be logged in for record purpose, including attendance.



C. Reinforce through annual Performance Management Process To reinforce the understanding of the vision, mission and values, it should form part of annual individual performance review and development process. Each individual will have Key Performance Indicators that is directly or indirectly linked to the vision.

Another method of reinforcing the vision and values are through making it a mandatory requirement to discuss at least one core values during any meeting. The discussion can be short where examples can be shared on how the value was displayed in the organization.

D. Senior Leaders Personal Actions

To further reinforce the organization values and visions, senior managers should spend at least 10% of their time at the floor level, interacting and getting to know the employees, becoming a role model and listening to the employees point of view.Employees can also give their views on the values and visions and how it can be better deployed.

E. New Employee Orientation

All new employees must go through an induction program. Among the induction they have to go through, is the session with one of the senior managers on the company vision, values and missions.

The above mentioned 5 actions, if done well by the organization will set the entire organization along a common goal and objectives.

Recruitment Process

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

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

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

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

The main objective of the recruitment process is to expedite the selection process.

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

RECRUITMENT NEEDS ARE OF THREE TYPES

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

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

UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs


PURPOSE & IMPORTANCE OF RECRUITMENT

The Purpose and Importance of Recruitment are given below:

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

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

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

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

Increase the pool of job candidates at minimum cost.


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

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

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

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

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


RECRUITMENT PROCESS

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

Identifying the vacancy:

The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain:

• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
Preparing the job description and person specification.


Locating and developing the sources of required number and type of employees (Advertising etc).


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


Arranging the interviews with the selected candidates.


Conducting the interview and decision making




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


SOURCES OF RECRUITMENT

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




FACTORS EFFECTING RECRUITMENT

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




RECRUITMENT POLICY OF A COMPANY

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

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

COMPONENTS OF THE RECRUITMENT POLICY

The general recruitment policies and terms of the organisation

Recruitment services of consultants

Recruitment of temporary employees

Unique recruitment situations

The selection process

The job descriptions

The terms and conditions of the employment

A recruitment policy of an organisation should be such that:

It should focus on recruiting the best potential people.

To ensure that every applicant and employee is treated equally with dignity and respect.

Unbiased policy.

To aid and encourage employees in realizing their full potential.

Transparent, task oriented and merit based selection.

Weightage during selection given to factors that suit organization needs.

Optimization of manpower at the time of selection process.

Defining the competent authority to approve each selection.

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

Integrates employee needs with the organisational needs.


FACTORS AFFECTING RECRUITMENT POLICY

Organizational objectives

Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Need of the organization.

Recruitment costs and financial implications.


RECENT TRENDS IN RECRUITMENT

The following trends are being seen in recruitment:

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

Advantages of outsourcing are:

Company need not plan for human resources much in advance.

Value creation, operational flexibility and competitive advantage

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

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

Company can save a lot of its resources and time


POACHING/RAIDING

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


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

Advantages of recruitment are:

Low cost.
No intermediaries
Reduction in time for recruitment.
Recruitment of right type of people.
Efficiency of recruitment process.


RECRUITMENT Vs. SELECTION

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

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

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

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

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

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



TYPES OF JOB SEEKERS

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

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

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

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