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

Recruitment

Vacancy triggers recruitment process

Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization


Recruitment process –

.. Identification of vacancy

.. Analyzing the vacant job

.. Applying the sources of recruitment (internal & external sources)

.. Screening of suitable resumes for interview

.. Initial interview with the candidates and shortlisting the suitable

.. Call candidates for further / final rounds of interviews

.. Selection of suitable candidates for the positions vacant

.. Complete the documentation process and verification

.. Issue offer letter

.. Perform the joining formalities

.. Recruit the personnel

.. Schedule induction programme for new joinees

.. Follow up of other HR activities


Sources of Recruitment –

(1) Internal sources

.. Internal job posting

.. Considering previous and current employees of the orgn.


(2) External sources

.. Employee reference

.. Application data bank

.. Advertising

.. Employment agencies

.. Schools & colleges

.. Job portals


Interviews

.. Personal interview is the most universally used tool in any selection process

.. Generally, an employment interview will serve 3 purposes

Obtaining information – About prospective employees background, work history, education and interests

Giving information – About company, specific job and personnel policies

Motivation – It will also help in establishing a friendly relationship between the employer and the applicant and motivate the satisfactory applicant to want to work for the company or orgn.


.. But in reality, it is not so. It helps only in obtaining information about the candidate. The other 2 purposes are generally not served


Types of interviews –


.. Informal interviews

It is not planned and is used when labour market is tight and we need workers badly. Sometimes a friend or relative may take a candidate to the house of the employer, where this type of interview may be conducted.


.. Formal interviews

It’s a planned interview. This is held in a formal atmosphere in employment office with a well structured questions. Here the interviewer has a plan of action, time to be devoted to each candidate, modality of interview and so on.


.. Patterned interviews

A well planned interview with higher degree of accuracy and precision. A list of questions and areas is carefully prepared. The interviewer goes down the list of questions, asking them one after another.


.. Non-directive interviews

Under this type, the candidate is allowed to express his opinion freely.

Interviewer is a careful and patient listener, prodding whenever the candidate is silent. The purpose of the interview is to give the candidate, complete freedom to sell himself without encumbrances of the interviewer’s questions.


.. In-depth interviews

It is intended to mainly examine the candidate’s background and thinking and to go into considerable detail on a particular subject of special interest to the candidate.


.. Stress interview

This method will test the candidate and his conduct & behaviour by putting him under conditions of stress and strain. This is more advantageous type as it tests the behaviour of individuals under disagreeable and trying situations.


.. Group interview

The candidates response and reaction will be tested. Candidates will be given a topic for discussion and be observed as to who will lead the discussion, how reasonable their views are, how they react to other’s opinions and so on.


.. Panel interview
The members of interview board will conduct the interview. This is done usually for supervisory and managerial positions. It coordinates the collective judgement and wisdom of the members of the panel.


Suggestions for improving the effectiveness of interviews –


.. An interview should follow a definite time schedule with ample time for
interview

.. The interview should be conducted in a calm and cool atmosphere

.. Interview should have necessary elements of privacy

.. The interview should not lead a mental tension and stress and should avoid arguments

.. Attention should be paid not only to the communication skills (if the job requirement can be satisfied with average of it), but also the managerial abilities and attitude

.. A panel should conduct the interview avoiding exhibiting their individual talent before other members, which causes inconvenience to the candidate


.. The interviewee should be informed about the method and maximum time in getting result

Recruitment System

Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organisation are a vital resource and can be a core competency or a strategic advantage for it.

The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organisation to achieve its goals and objectives. With the same objective, recruitment helps to 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.

Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organisation.




Recruitment Management System :


Recruitment management system is the comprehensive tool to manage the entire recruitment processes of an organisation. It is one of the technological tools facilitated by the information management systems to the HR of organisations. Just like performance management, payroll and other systems, Recruitment management system helps to contour the recruitment processes and effectively managing the ROI on recruitment. The features, functions and major benefits of the recruitment management system are explained below:

  • Structure and systematically organize the entire recruitment processes.
  • Recruitment management system facilitates faster, unbiased, accurate and reliable processing of applications from various applications.

  • Helps to reduce the time-per-hire and cost-per-hire.
  • Recruitment management system helps to incorporate and integrate the various links like the application system on the official website of the company, the unsolicited applications, outsourcing recruitment, the final decision making to the main recruitment process.
  • Recruitment management system maintains an automated active database of the applicants facilitating the talent management and increasing the efficiency of the recruitment processes.
  • Recruitment management system provides and a flexible, automated and interactive interface between the online application system, the recruitment department of the company and the job seeker.
  • Offers tolls and support to enhance productivity, solutions and optimizing the recruitment processes to ensure improved ROI.
  • Recruitment management system helps to communicate and create healthy relationships with the candidates through the entire recruitment process.
The Recruitment Management System (RMS) is an innovative information system tool which helps to sane the time and costs of the recruiters and improving the recruitment processes