Need for Appraising Employee Performance in Organizations There are several reasons to appraise subordinates performance. First, appraisals play, or should play, an integral role in the employer’s performance management process; it does little good to translate the employer’s strategic goals into specific employees’ goals, and then train the employees. Second, the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies the appraisal might have unearthed, and to reinforce the things the subordinate does correctly. Third, appraisals should serve a useful career planning purpose by providing the opportunity to review the employee’s career plans in light of his or her exhibited strengths and weakness. And, last but not least, the appraisal almost always affect the employer’s salary raise and promotional decisions. In reviewing the appraisal tools we discuss below don’t miss the forest for the trees. It doesn’t matter which tool you use if you’re less than Continue reading
HRM Functions
Different Stages of Career Development
The career stage approach is one way to look at career development. One way to characterize a person’s life or career is by identifying common experiences, challenges, or tasks most people go through as their life or career progress. As individuals have different career development needs at different stages in their careers, when an organisation recruits an employee in any of the grades of its cadre for a fairly long tenure, the employer must take interest in and take constructive steps for building up employees’ career from that point of time. Stage views of career development have their limitations. It is applicable to a typical individual. Since all individuals are unique, they may not have the same experiences. Therefore, career development stages differ from individual to individual due to obvious difference in perceived internal career. However, keeping in view of general requirements of people career development may be grouped under Continue reading
Strategies to Reduce Employee Turnover
Today, most of the companies believed that in order to achieve and sustained effectively, human resource management (HRM) needs to be efficient. Effective HRM can be main factor for the success of an organization. In the new economy, it has become a trend of employees staying on for a short duration in any one organization, which results to many problems. Failure in managing human capital will create fatal problems to the company. Therefore, most of the organizations, both domestic companies and multinational corporations (MNCs) tend to focus more on HRM as a key of success. 1. Hiring the Right People Hiring the right people from the start would also reduce employee turnover. Managers should have a clear idea of the types of people they want to hire for each position, write detailed job descriptions and commit to hiring the best candidates rather than the first candidates who meet minimum requirements. Continue reading
HRM Functions: Training and Management Development
Having selected the manager for the job, he or she must be trained. However, it is not sufficient to provide training only for the manager: the whole family must be trained. Training should include at least two phases. Pre-departure training should focus on language, history and culture for the whole family and on job-specific training for the manager. On arrival in the new country two or three weeks without too much job-related activity should be allowed for adaptation to the new culture. Transition training should continue with language and culture training as well as meetings at which the new expatriates have the chance to mix with local residents and other foreign nationals. Caring for expatriate managers does not cease at this point. The home office must remain alert to the need to provide psychological support in a variety of ways and to convince expatriates that they are not being disadvantaged Continue reading
Objectives of Compensation Management
The basic objective of compensation management can be briefly termed as meeting the needs of both employees and the organisation. Since both these needs emerge from different sources, often, there is a conflict between the two. This conflict can be understood by agency theory which explains relationship between employees and employers. The theory suggests that employers and employees are two main stakeholders in a business unit, the former assuming the role of principals and the latter assuming the role of agents. Objectives of Compensation Management The compensation paid to employees is agency consideration. Each party to agency tries to fix this consideration in its own favor. The employers want to pay as little as possible to keep their costs low. Employees want to get as high as possible. The compensation management tries to strike a balance between these two with following specific objectives: 1. Attracting and Retaining Personnel From organisation’s Continue reading
Methods of Job Evaluation
For fixing compensation to different jobs, it is essential that there is internal equity and consistency among different job holders. Job evaluation is the process of determining the relative worth of different categories of jobs by analyzing their responsibilities and, consequently, fixation of their remuneration. The basic objective of job evaluation is to determine the relative contributions that the performance of different jobs makes towards the realization of organisational objectives. There are four basic methods of job evaluation: ranking method, job grading method, point method and factor comparison method. Out of these, first two methods are non-quantitative and also known as traditional, non-analytical or summary methods. The last two methods of job evaluation are quantitative, also known as analytical methods, and use various quantitative techniques in evaluating a job. The basic difference between qualitative and quantitative methods of job evaluation is in terms of; Consideration of the job as a Continue reading