MB0043 Human Resource Management Sem 1 Aug Fall 2011 Assignment
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Q.1 What are the functions that HR attempts to fulfill in any organization.
Answer:
The Human Resources department is responsible for many varied functions including
employment, safety, training, wage, and salary administration and research and development.A human relations program represents an attempt at enhancing employee motivation and
workplace morale.
The Functions that HR attempts to fulfill in any organization are as follows:
i. Human Resource Planning: Estimating the need for resources in order achieve the desired
business results. HR plans can be both short term/immediate as well as long term/strategic.
The HR team partners with the line managers to understand the business goals and targets
for the year and together plan the HR needs in order to meet the goals.
ii. Acquisition of Human Resources: Staffing the organization with the right mix of skills and
competencies at the right time. It also includes HR initiatives like promotions and internal
job posting to fulfill this requirement for human resources. Staffing teams in organization
are usually separate group of specialists who work closely with the line managers to
understand the skills and competencies needed for the job and engage together to elect the
best talent for the open position.
iii. Training and Employee development: Focuses on managing training activities to upgrade
skills and knowledge as well as soft skills like the ream building and leadership. The training
team is again a group of HR specialist who proposes the training program and consults withthe line managers to ensure that the program achieves the desired outcomes
iv. Building performance management systems: Focuses on the right processes to set goals for
performance as individual / teams and related measurement methods. This is core HR
activity and is supported by the HR generalist.
v. Rewards Systems: Establishing appropriate compensation systems and reward mechanism
that would reward the desired outcome and results in accordance with the corporate
values. The again forms a part of HR generalist’s tasks. How employees progress in an
organization, how they are paid w.r.t internal and external market factors, what employeebenefits are offered are some aspects that this function redresses.
vi. Human resources information systems : A system that would take care of operational
transactions form the time an employee joins till the time employee exits, like personal
files, compensation administration, payroll, benefits administration and issuing letters and
testimonials. That task is supported by as separate HR operation team who acts as an HR
helpdesk and provides information to the employee/managers.
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• Organizational structure and systems tend to match the assumption regarding leadership and
motivation
• Decision making is centralized.
• Those at the top make most of the decision. Organization tends to have tall structures.
• They will have a large proportion of supervisory personal and
• The people at the lower level often will have low job qualifications
Such structures encourage and promote inequality between people at different levels.
Uncertainty Avoidance
Uncertainty avoidance is the extent to which people feel threatened by ambiguous situation,
and have created beliefs and institutions that try to avoid these.
India scores 40 indicating low to average uncertainly avoidance characterizes. Countries with
low to average uncertainly avoidance have people who are more willing to accept that risks are
associated with the unknown, and that life must go on in spite of this
Specifically, high uncertainly avoidance countries are characterized by norms, values and beliefs
which accept that:
• Conflict should not be avoided
• Deviant people and ideas should be tolerated,
• Laws are not very important and need not necessarily be followed,
• Experts and authorities are not always correct and consensus is not important.
Low uncertainty avoidance society such as ours have organization setting with less structuring
of activities, fewer written rules, more risk – taking by managers, higher labor turnover and
more ambitious employees. Such an organization encourages employees to use their initiative
and assume responsibility for their actions. Denmark and Great Britain are good examples of
low uncertainty avoidance cultures. Germany, Japan and Spain typify high uncertaintyavoidance societies.
Individualism
Individualism is the tendency of people to look after themselves and their family only. The
opposite of this collectivism which refers to the tendency of people to belong to group and to
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look after other in exchange for loyalty India score 48 on individualism, indicating somewhat
low scores, therefore tending towards a more collectistic society.
Collectivist countries believe that:
• One’s identity is based on one’s group membership,
• Group decision making is best and
• Group protect individuals in exchange for their loyalty to the group
Organizations in collectivist societies tend to promote nepotism in selecting managers. In
contrast, in individualism societies, favoritism shown to friends and relatives is considered to be
unfair and even illegal. Further organizations in collectivist culture base promotions mostly on
seniority and age, whereas in individualist societies; they are based on one’s performance.
Finally in collectivist cultures, important decisions are made by older and senior managers as
opposed to individualist cultures, where decision making is an individual’s responsibility.
Individualism is common in the US, Canada, Australia, Denmark and Sweden. The people of
India, Indonesia, and Pakistan & Number of South American countries exhibit collectivism.
Masculinity
Masculinity refers to a situation in which the dominant values in a society are success, money
and other material things. Hofstede measured this dimension on a continuum ranging from
masculinity to femininity. India scores 56 tending to be closed to masculinity than feminity.
In highly masculine societies, jobs are clearly defined by gender. There are men’s jobs and
women’s jobs. Men usually choose jobs that are associated with long term careers. Women
usually choose jobs that are associated with short term employment, before marriage.
Q.3. Explain the need for Human Resource Planning system.
Answer:
Planning is considered to be the first step for task performance. Human resource planningactivity is the most important and crucial step in building and growing an organization. It is the
process by which the management determines how an organization should move from its
current manpower position to its desired manpower position. Through human resource
planning, the management strives to have the right number and right kind of people at the right
place at the right time to do things which results in both the organization and individual
receiving the maximum long-range benefit.
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The organization’s business plan to invest in a particular product/market or a service will drive
the HRP activity towards hiring to meet the business need. In the event an organization is
divesting or shutting down a particular business unit or a manufacturing division the HRP
activities would focus on the redeployment of the workforce that will be rendered unemployed
as a result of the business decision. An organization wanting to retain its current market shareand revenue projection at status quo would be supported by HRP activities that are limited to
only filling positions falling vacant due to natural organizational attrition. Hence the HRP focus
in a organizations is closely linked to the business plan and acts as a bridge between what an
organization wishes to achieve and how it will go about achieving it w.r.t. the human resources
requirements.
Human Resource planning is a mandatory part of every organization’s annual planning process.
Every organization that plans for its business goals for the year also plans for how it will go
about achieving them and therein the planning for human resource.
i. To carry on its work, each organization needs competent staff with necessary
qualifications, skills, knowledge, work experience and aptitude for work.
ii. Since employees exit an organization both naturally and unnaturally, there is an on-
going need for hiring replacement staff to augment employee exit. Otherwise work
would be impacted.
iii. In order to meet the need for more employees due to organizational growth and expansion,
this in turn calls for larger quantities of the same goods and services as well as new goods. This
growth could be rapid or gradual depending on the nature of the business, its competitors, its
position in the market and the general economy.
iv. Often organizations might need to replace the nature of the present workforce as a result of its
changing needs, therefore the need to hire new set of employees. To meet the challenge of the
changed needs of technology / product/service innovation the existing employees need to be
trained or new skill sets induced into the organization.
v. Manpower planning is also needed in order to identify an organizations need to reduce its
workforce. In situations where the organization is faced with severe revenue and growthlimitations it might need to plan well to manage how it will reduce its workforce. Options such
as redeployment and outplacement can be planned for and executed properly.
Q.4. Elucidate the classification of wages in the Indian System.
Answer:
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The salary or wage or compensation systems are designed to ensure that employees are
rewarded appropriately depending on what they do and the skills and knowledge required for
doing a specific job. The basic purpose of wage and salary administration, also termed as
compensation management is to establish and maintain equitable wage and salary programs.
The other objective is to design and implement an equitable labour-cost structure. i.e., an
optimal balancing of conflicting personnel interests so that the satisfaction of employees and
employers is maximized.
A wage is a compensation, usually financial, received by a worker in exchange for their labor.
The International labour Organization (ILO) in one of its publications classified wages as under:
The amount necessary for mere subsistence;
The amount necessary for health and decency; and
The amount necessary to provide a standard of comfort.
In India, wages are classified as :
Minimum wage
Fair wage
Living wage
Let us look at these in detail,
Minimum Wage
A minimum wage has been defined by the Committee as "the wage which must provide not
only for the bare sustenance of life, but for the preservation of the efficiency of the worker. For
this purpose, the minimum wage must provide for some measure of education, medical
requirements and amenities". In other words, a minimum wage should provide for the
sustenance of the worker's family, for his efficiency, for the education of his family members,
for their medical care and for some amenities. It is very difficult to determine the minimum
wage because conditions vary from place to place, industry to industry and from worker to
worker. However, the principles for determining minimum wages were evolved by the
Government and have been incorporated in the Minimum Wages Act, 1948, the important
principle being that minimum wages should provide not only for the bare sustenance of life but
also for the preservation of the efficiency of the workers by way of education, medical care and
other amenities.
Fair Wage
According to the Committee of fair wages, “it is the wage which is above the minimum wage
but below the living wage”. The lower limit of the fair wage is obviously the minimum wage; the
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We could suggest to Ms. Sharma to consider the Horizontal promotions as an alternative way to
vertical promotion. Under this policy, an employee may be transferred from a position in one
department to a position of higher rank in another department or to the same rank in a
different department if the transfer gives him an opportunity to acquire greater knowledge and
wider experience. E.g. if a Senior Lecturer cannot get promotion in a particular Department forobvious reasons, he may be transferred as Registrar of the University or as Controller of
Examinations or Director of Distance Education. However, there is one difficulty. Unless the
person is quite dynamic and intelligent, he may find the new assignment a tough one and
irksome. To some, it may be a cause for frustration.
However, for many, Horizontal promotion even if it is only a paper promotion is a challenge
since it allows them job rotation.
Q.6 ABC is an organization that wants to revise the HR policies. Before doing that it want to
have some details about the following:
What the employees think about the company?
What do they think, in the company is going well?
What practices in the company they think are not doing well?
Get the feedback on managerial effectiveness.
Suggest the suitable method to collect the employee opinion and explain the method.
Answer:
Employee survey techniques have developed significantly over the past few years, with web
based technologies it is easier and cheaper than ever to collect and manage data. In the past,
any HR driven initiative was seen as tactical and of little real benefit to the organization as a
whole. Now many enlightened organizations see HR and employee surveys as a powerful
business improvement tool.
Customers now have a greater range of choices than ever and are becoming increasingly better
informed. This in turn means that many have very high expectations and, if they feel they are
being ‘short changed´ in any way, they take the initiative and switch their allegiance. This
reduction in consumer loyalty can create difficulties in retaining existing customers, causingorganizations to increase the amount they spend on engaging new customers.
Consumer choice has also brought greater competitiveness to the market and in many
situations it is difficult for an organization to differentiate itself from the competition in terms
of production range, quality and price. As a result, the main differentiator for organizations has
to be the quality of service that the customer receives. It is vital for every interaction to be a
positive one, not just for the customer, but for the employee as well. If the customer is happy,
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they spend more money, which naturally improves the organization’s overall business
performance.
Different Types of Employee Survey Programs
Annual climate and employee satisfaction surveys are by far the most popular kind of employeesurvey activity. However, the following types of survey programs are also gaining in popularity:
• Combining employee and customer satisfaction studies.
• Procedure/policy evaluation.
• Alignment of employees behind new product development.
• Alignment of employees behind organizational rebranding and repositioning efforts.
• Managing employees through organizational change programs (e.g. merger,
acquisition/downsizing, etc.).
• Internal customer service evaluations.
• Internal communications evaluations.
• Evaluation and design of different benefits schemes.
Defining Employee Survey Goals and Objectives
Before starting on a staff survey process, it is vital to define a set of objectives for the survey.
Without these objectives, the survey program will lack focus and it will be difficult to raise
enthusiasm for the survey among your key influencers and decision makers. All employee
survey programs need to be seen as a company-wide initiative that is driven by managers and
employees from across the whole organization and not something that is solely initiated and
managed just within HR
Deciding on the Appropriate Survey Methodology
Defining objectives at the outset will help to determine the methodology because, to meet the
desired objectives, you will need to consider the following:
• Are all employees affected and should all employees need to be involved?
• Will changes and improvement action be required at different levels across the organization?
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• How will managers and employees be engaged in the improvement process?
• How will awareness of the survey, its results and improvements be raised and managed
among employees?
• How will the progress of improvement actions be reviewed, monitored and communicatedover time?
Quantitative and qualitative research methods can both be highly effective in employee
surveys. It is essential, though, to ensure that the correct methodology is used for the type of
survey being conducted.
Employee satisfaction surveys are the most common form of quantitative research. There are
occasions when both methodologies can be effectively combined. For example, in an employee
satisfaction survey, you may decide to use focus groups before designing the survey in order to
determine the survey content and/or pilot questionnaire.
Employee Satisfaction Surveys It is worthwhile examining employee satisfaction surveys in
more detail given that they are the most popular type of employee survey.
• Pre Survey
• During the Survey
• Post Survey
• Between Surveys
AN INTRODUCTION TO EMPLOYEE SURVEY TECHNIQUES
Planning for Employee Satisfaction Surveys
The following outlines some of the factors that should be communicated at each stage of the
process:
Pre Survey
• Objectives of the survey, rationale for the survey and how the results will be fed back
• Use an independent, third-party agency for data collection and analysis
• Timing of the data collection
• Senior management commitment to the survey
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• Importance of getting a good response rate so that all employee opinions are heard
• Importance of participation
• Methodology to be used
• Assurance that the study will protect anonymity and preserve confidentiality.
During the Survey
• Reminder of the objectives and assurance that action will be taken
• Assurance that individual surveys cannot be seen
• Regular reminders and a notice of when the survey completion period will end
• How the results will be acted upon
• Update on current response rate
• Reinforce the importance of participation
• How employees can participate and what employees should do if having problems accessing
or completing the survey
• Reinforce anonymity and confidentiality of the results
Post Survey
• Thank employees for participating and communicate how results will be shared
• Final response rate (Company wide vs. Business Units/Divisions)
• Detail on how employees should get involved in the improvement action planning process
• Local results and local improvement action planning
• Provide top-level summary results
• Reminder of the action planning process
Between Surveys
• Highlight and recognize successful examples of action planning and progress made
• Recognize the contributions of teams and individuals to the action planning process
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• Senior management endorsement and support of the final action plan/survey outcomes
• Detailed plans for the next survey
• Highlight any areas where action cannot be taken and the reasons for this
• Highlight the impact of action planning on customer service and business performance
Electronic and Web-Enabled
Increasingly, organizations are starting to move towards electronic methods of surveying their
employees and the most common method is hosting a web-enabled survey.
Questionnaire Design
The design of the questionnaire is important as it can have as much influence over the response
rate as the method of completion.
The key incentive
In contrast to the weak influence of incentives, research shows that employees are more likely
to participate in an employee survey if they believe that the results will be acted upon. The
golden rule of this type of survey is that, if you do not intend to act on the results, then do not
conduct the survey in the first place.
Results Analysis and Reporting
There are many different ways of analyzing, cutting and reporting results and each organization
has to decide individually on the best method for their needs.
IMPROVEMENT ACTION PLANNING
Background As noted earlier, the guiding principle of employee survey is that, if you are not
prepared to act on the results, then do not conduct the survey in the first place. You have spent
time and effort getting employees enthusiastic about the survey and they now have high
expectations that there will be improvement activity in which they will be involved.
Improvement action planning should be ³top down´ process where the priorities for theorganization are identified, communicated and acted upon at the senior management level.
Then moving down to Divisional and Unit levels, local teams should identify and tackle the
things that they have direct control over and escalate anything else back upwards.
Prioritizing Improvement Actions Prioritization of improvement actions should be taken under
consideration. Some organizations struggle with improvement action planning because they try
to tackle far too many improvement actions at once and start spreading the valuable resources
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they have too thinly over too many actions. Our recommendation is that not more than three
to four improvement actions should be tackled at one time and that further actions should not
be pursued until at least one of the existing actions has been fully completed.
The specific components of the plan should be as follows:
1. Area for improvement: What is the problem? What impact is it having on employees and
customers? What is causing the problem?
2. What Needs to Happen: Specify the specific improvement action that is required to address
the problem.
3. How It Will Happen: Specify the process and activities required as part of the improvement
action.
4. Timelines: It is important to have a target date for completing the delivery of the action. This
sets the focus that any target delivery date is realistic and achievable and it may be stretched if
not met.
5. Action Owner: It is important for one person to be allocated ownership for the action. This
does not necessarily mean that this person is solely responsible for the delivery of the action,
but they are responsible for ensuring that the delivery does actually happen. Ownership for
actions should be spread around the team so that no one person is overburdened.
6. Resources: Specify and determine what individual resources are required such as personnel,
money, materials or support from other parts of the organization.
7. Improvement Targets: It is important to be able to determine whether improvement actions
are having the desired effect by setting improvement targets. The survey can be used as a
source for this by pulling out appropriate questions and setting targets for improving the results
to these questions in the next survey.
8. Method of Measurement: List the data sources that will provide the information needed for
improvement targets.
9. Review Dates: Specify all of the dates when the improvement action will be reviewed.
10. Review of Progress: This step should be completed after each review to outline the progressmade against the action.
11. Completion Date: The date when the action was finally completed.
12. Impact: Completed after the action has finally been delivered to define the impact and
difference that the improvement action has made to employees, customers and the business
overall.
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Q.1 Discuss the factors affecting recruitment.
Answer:
Recruitment or manpower selection process is the first step in the employment of labour and
the methods through which labour is brought into industry has much to do with the ultimatesuccess or failure of such employment. Recruitment has been regarded as the most important
function of personnel administration, because unless the right type of people are hired; even
the best plans, organization charts and control systems would not do much good.
All organizations, whether large or small, do engage in recruiting activity, though not to the
same extent. The ability to identify the correct talent for not just the role/job but also from the
organizational values perspective can be summarized as the key recruiting challenge.
Few factors that impact the nature of recruitment:
vii. The size of the organization: the smaller the organization the more the need to carefully
scrutinize the candidate for a job and the fitment to the organizational culture. The risk in
case of job-candidate mismatch can prove equally expensive for a smaller organization as
compared to the larger one.
viii. The employment conditions in the country where the organization is located- critically
impacts the recruiting strategy. The methods for recruiting, the selection tools that are
most suited and the legal framework that bear on the employer are some aspects that need
to be considered.
ix. The effects of past recruiting efforts which show the organization’s ability to locate andkeep good performing people- constantly reviewing the effectiveness of the recruiting
methods and the selection tools used, evaluating the success at-work of the new recruits
are some methods used by organizations to ensure that quality hiring practices are in-place.
x. Working conditions and salary and benefit packages offered by the organization – this may
influence turnover and necessitate future recruiting; (v) The rate of growth of organization-
the phase in the life-cycle of the firm is a measure of the recruiting effort.
xi. The level of seasonality of operations and future expansion and production programmes –
ensuring that the recruitment numbers come from a well-planned Human Resource Plan iscritical to ensure that there is no over-hiring or under-hiring of the required talent to
achieve the organizational objectives.
xii. Cultural, economic and legal factors – these too affect the recruiting and selection methods
that are used.
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Q.2. Right Time is a watch manufacturing company. It has hired 20 people recently for the
company. They will be involved in manufacturing, assembling of watches. They will be using
different machines and tools for this. What type of training is best for them? What may be the
advantages and limitations of the training method?
Answer:
Training type and method have to be chosen carefully and in relation to the program design
objectives.
The main objectives of individual training methods could be:
i. Demonstration of Value: Complete demonstration of job requirements enables the
trainee to grasp the meaning of ideas, concepts, or procedures visually. Such a method
can be used effectively as an aid to overcome the "breakdown of communication".
Trainees remember things that they see and hear, much longer than they do informationthey receive through talks or reading alone.
ii. Engaging trainee Interest: One of the important factors to be kept in mind in choosing a
method is its ability to hold and arouse the interest of the trainee in the learning situation.
A trainee has to consider alternative methods of presenting training material to
participants in order to stimulate their interest and facilitate retention of the matter. For
instance, if traditionally the matter has been presented through lectures, perhaps audio
visual methods could be used, or instead project work be assigned which would mean
learning by doing or researching the subject oneself.
iii. Appeal to multiple senses: From the trainer’s point of view, it would be beneficial to
utilize as many of the trainer’s senses as possible, in order to improve retention of
learning. The trainer has to understand and identify the problem area i.e., he has to
examine whether there is a problem with the manner in which the task is done. Secondly,
selecting the appropriate method would be dependent on the level of the trainee in an
organization’s hierarchy. Finally, before selecting a training method, the trainer should
keep in mind about cost effectiveness.
Considering the above objectives, the best suited training method here is On-the-Job trainings.
It is a popular technique for strongly motivating the trainee to learn since it is located in the
artificial situation of a classroom. The fact that the success of the system depends almost
entirely upon the immediate supervisor, the trainer, means that the personnel unit has a major
responsibility for making a good, effective teacher out of every supervisor. The supervisor
typically follows a set procedure (as illustrated in the table) in training an employee to perform
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a particular task. The suggestions accompanying each step are general guides evolved from
both experience and research.
Table on Training Procedure
Step Suggestions
Instructor
preparation
1. Divide task into logical parts to create lesson plans.
2. Select teaching techniques e.g., demonstration.
Training preparation 1. Place trainee at ease.
2. Relate training to trainee needs e.g. promotion.
Presenting the task 1. Present overview of task.
2. Proceed from known to unknown, easy to difficult.
3. Adjust pace to individual differences.
4. Go through task and explain each step.
5. Have trainee tell instructor what to do.
Tryout Performance 1. Have trainee explain each step prior to execution.
2. Be aware of learning plateaus to sustain motivation.
3. Provide feedback on progress.
Follow-up 1. Positively reinforce continuously at start.
2. Move to variable positive reinforcement schedule as trainee
matures.
Advantages: The main advantage of on-the-job training is that the trainee learns on the actualequipment in use and in the true environment of his job. Secondly, it is highly economical since
no additional personnel or facilities are required for training. Thirdly, the trainee learns the
rules, regulations and procedures by observing their day-to-day applications. Fourthly, this type
of training is a suitable alternative for a company in which there are almost as many jobs as
there are employees. Finally, it is most appropriate for teaching the knowledge and skills which
can be acquired in a relatively short period i.e., a few days or weeks.
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Disadvantages: The principal disadvantage of on-the-job training is that instruction is often
highly disorganized and haphazard and not properly supervised. This is due to such reasons as
the inability of the experienced employee to impart skills to the trainee, the breakdown of the
job for the purpose of instructions, and the back of motivation on the part of the trainee to
receive training. Further, the other drawback is the low productivity, especially when theemployee is unable to fully develop his skills.
Q.3. Write a note on 360 degree appraisal method.
Answer:
In any organization, ideally every individual needs to be appraised. The appraisal system should
be able to take care of this, and it shall also meet the needs and the objectives of the
organization.
Mostly, performance appraisal has been limited to a feedback process between employees and
Managers. However, with the increased focus on teamwork, employee development, and
customer service, the emphasis has shifted to employee feedback from the full circle of sources
depicted in the diagram below. This multiple-input approach to performance feedback is called
"360-degree assessment" to connote that full circle.
The 360 degree matrix
There are no prohibitions in law or regulation against using a variety of rating sources, in
addition to the employee’s Manager, for assessing performance. Research has shown
Self
Superior External
Customer
Sub-
ordinate
Peer Peer
Internal
Customer
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assessment approaches with multiple rating sources provide more accurate, reliable, and
credible information. For this reason, HR Management supports the use of multiple rating
sources as an effective method of assessing performance for formal appraisal and other
evaluative and developmental purposes.
The circle, or perhaps more accurately the sphere, of feedback sources consists of superiors,
peers, subordinates, customers, and one’s self. It is not necessary, or always appropriate, to
include all of the feedback sources in a particular appraisal program. The organizational culture
and mission must be considered, and the purpose of feedback will differ with each source. For
example, subordinate assessments of a Manager’s performance can provide valuable
developmental guidance, peer feedback can be the heart of excellence in teamwork, and
customer service feedback focuses on the quality of the team’s or agency’s results. The
objectives of performance appraisal and the particular aspects of performance that are to be
assessed must be established before determining which sources are appropriate.
The contributions of each source of ratings and feedback and the precautions when designing a
performance management program that includes 360-degree assessment are discussed below.
vi. Superiors: Evaluations by superiors are the most traditional source of employee feedback.
This form of evaluation includes both the ratings of individuals by Managers on elements in
an employee’s performance plan and the evaluation of programs and teams by senior
managers.
What does this source contribute?
1. The first-line Manager is often in the best position to effectively carry out the full cycle of
performance management: Planning, Monitoring, Developing, Appraising, and Rewarding.
The Manager may also have the broadest perspective on the work requirements and be
able to take into account shifts in those requirements.
2. The superiors (both the first-line Manager and the senior managers) have the authority to
redesign and reassign an employee’s work based on their assessment of individual and
team performance.
3. Most Government employees in a national survey felt that the greatest contribution to their
performance feedback should come from their first- level Managers.
What cautions should be addressed?
1. Research demonstrates that appraisal programs that rely solely on the ratings of superiors
are less reliable and valid than programs that use a variety of other rating sources to
supplement the Manager’s evaluation.
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2. Superiors should be able to observe and measure all facets of the work to make a fair
evaluation. In some work situations, the Manager or rating official is not in the same
location or is supervising very large numbers of employees and does not have detailed
knowledge of each employee’s performance.
3.
Managers need training on how to conduct performance appraisals. They should be capableof coaching and developing employees as well as planning and evaluating their
performance.
vii. Self-Assessment: This form of performance information is actually quite common but
usually used only as an informal part of the Manager-employee appraisal feedback session.
Managers frequently open the discussion with: "How do you feel you have performed?" In
a somewhat more formal approach, Managers ask employees to identify the key
accomplishments they feel best represent their performance in critical and non-critical
performance elements. In a 360-degree approach, if self-ratings are going to be included,
structured forms and formal procedures are recommended.
What does this source contribute?
1. The most significant contribution of self-ratings is the improved communication between
Managers and subordinates that result.
2. Self-ratings are particularly useful if the entire cycle of performance management involves
the employee in a self-assessment. For example, the employee should keep notes of task
accomplishments and failures throughout the performance monitoring period.
3. The developmental focus of self-assessment is a key factor. The self-assessment instrument
(in a paper or computer software format) should be structured around the performance
plan, but can emphasize training needs and the potential for the employee to advance in
the organization.
4. The value of self-ratings is widely accepted. More than half of government employees felt
that self-ratings would contribute "to a great or very great extent" to fair and well-rounded
performance appraisal.
5. Self-appraisals should not simply be viewed as a comparative or validation process, but as a
critical source of performance information. Self-appraisals are particularly valuable in
situations where the Manager cannot readily observe the work behaviors and task
outcomes.
What cautions should be addressed?
1. Research shows low correlations between self-ratings and all other sources of ratings,
particularly Manager Ratings. The self-ratings tend to be consistently higher. This
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discrepancy can lead to defensiveness and alienation if Managers do not use good feedback
skills.
2. Sometimes self-ratings can be lower than others’. In such situations, employees tend to be
self-demeaning and may feel intimidated and "put on the spot."
3.
Self-ratings should focus on the appraisal of performance elements, not on the summarylevel determination. A range of rating sources, including the self-assessments, help to
"round out" the information for the summary rating.
viii. Peers: With downsizing and reduced hierarchies in organizations, as well as the increasing
use of teams and group accountability, peers are often the most relevant evaluators of
their colleagues’ performance. Peers have a unique perspective on a co-worker’s job
performance and employees are generally very receptive to the concept of rating each
other. Peer ratings can be used when the employee’s expertise is known or the
performance and results can be observed. There are both significant contributions and
serious pitfalls that must be carefully considered before including this type of feedback in a
multifaceted appraisal program.
What does this source contribute?
1. Peer influence through peer approval and peer pressure is often more effective than the
traditional emphasis to please the boss. Employees report resentment when they believe
that their extra efforts are required to "make the boss look good" as opposed to meeting
the unit’s goals.
2. Peer ratings have proven to be excellent predictors of future performance. Therefore, they
are particularly useful as input for employee development.
3. Peer ratings are remarkably valid and reliable in rating behaviors and "manner of
performance," but may be limited in rating outcomes that often require the perspective of
the Manager.
4. The use of multiple Raters in the peer dimension of 360-degree assessment programs tends
to average out the possible biases of any one member of the group of Raters. (Some
agencies eliminate the highest and lowest ratings and average the rest.)
5. The increased use of self-directed teams makes the contribution of peer evaluations the
central input to the formal appraisal because by definition the Manager is not directly
involved in the day-to-day activities of the team.
6. The addition of peer feedback can help move the Manager into a coaching role rather than
a purely judging role.
What cautions should be addressed?
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1. Peer evaluations are almost always appropriate for developmental purposes, but
attempting to emphasize them for pay, promotion, or job retention purposes (i.e., the
rating of record) may not be prudent. The possible exception is in an award program as
opposed to performance appraisal. Peer input can be effectively used for recognition
and awards.2. There is a difference of opinion about the need for anonymity of the peer evaluators.
Generally, it is advised that the identities of the Raters be kept confidential to assure
honest feedback. However, in close-knit teams that have matured to a point where
open communication is part of the culture, the developmental potential of the feedback
is enhanced when the evaluator is identified and can perform a coaching or continuing
feedback role.
3. It is essential that the peer evaluators be very familiar with the team member’s tasks
and responsibilities. In cross-functional teams, this knowledge requirement may be a
problem. In these situations, the greatest contribution the peers can make pertains to
the behaviors and effort (input) the employee invests in the team process.
4. The use of peer evaluations can be very time consuming. When used in performance
ratings, the data would have to be collected several times a year in order to include the
results in progress reviews.
5. Depending on the culture of the organization, peer ratings have the potential for
creating tension and breakdown rather than fostering cooperation and support. A very
competitive program for rewarding individuals in the agency will often further
compromise the value of peer rating systems.
6. Employees and their representatives need to be involved in every aspect of the design
of appraisal systems that involve peer ratings.
ix. Subordinates: An upward-appraisal process or feedback survey (sometimes referred to as
SAM for a "Subordinates Appraising Managers") is among the most significant and yet
controversial features of a "full circle" performance evaluation program. Both managers
being appraised and their own superiors agree that subordinates have a unique, often
essential, perspective. The subordinate ratings provide particularly valuable data on
performance elements concerning managerial and Managerial behaviors. However, there is
usually great reluctance, even fear, concerning implementation of this rating dimension. On
balance, the contributions can outweigh the concerns if the precautions noted below are
addressed.
What does this source contribute?
1. A formalized subordinate feedback program will give Managers a more comprehensive
picture of employee issues and needs. Managers and Managers who assume they will
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sufficiently stay in touch with their employees’ needs by relying solely on an "open door"
policy get very inconsistent feedback at best.
2. Employees feel they have a greater voice in organizational decision making and, in fact, they
do. Through managerial action plans and changes in work processes, the employees can see
the direct results of the feedback they have provided.3. The feedback from subordinates is particularly effective in evaluating the Manager’s
interpersonal skills. However, it may not be as appropriate or valid for evaluating task-
oriented skills.
4. Combining subordinate ratings, like peers rating, can provide the advantage of creating a
composite appraisal from the averaged ratings of several subordinates. This averaging adds
validity and reliability to the feedback because the aberrant ratings get averaged out and/or
the high and low ratings are dropped from the summary calculations.
What cautions should be addressed?
1. The need for anonymity is essential when using subordinate ratings as a source of
performance feedback data. Subordinates simply will not participate, or they will give
gratuitous, dishonest feedback, if they fear reprisal from their Managers. If there are fewer
than four subordinates in the rating pool for a particular manager, the ratings (even though
they are averaged) should not be given to the Manager.
2. Managers may feel threatened and perceive that their authority has been undermined
when they must take into consideration that their subordinates will be formally evaluating
them. However, research suggests that Managers who are more responsive to their
subordinates, based on the feedback they receive, are more effective managers.
3. Subordinate feedback is most beneficial when used for developmental purposes. It also can
be used in arriving at the performance rating of record, but precautions should be taken to
ensure that subordinates are appraising elements of which they have knowledge. For
example, if a Manager’s performance plan contains elements that address effective
leadership behaviors, subordinate input would be appropriate. It may not be appropriate
for the employee to appraise the Manager’s individual technical assignments.
4. Only subordinates with a sufficient length of assignment under the manager (at least 1 year
is the most common standard) should be included in the pool of assessors. Subordinates
currently involved in a disciplinary action or a formal performance improvement period
should be excluded from the rating group.
5. Organizations currently undergoing downsizing and/or reorganization should carefully
balance the benefits of subordinate appraisals against the likelihood of fueling an already
tense situation with distrust and paranoia.
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x. Customers: Setting Customer Service Standards requires agencies to survey internal and
external customers, publish customer service standards, and measure agency performance
against these standards. Internal customers are defined as users of products or services
supplied by another employee or group within the agency or organization. External
customers are outside the organization and include, but are not limited to, the generalpublic.
What does this source contribute?
1. Customer feedback should serve as an "anchor" for almost all other performance factors.
Combined with peer evaluations, these data literally "round out" the performance feedback
program and focus attention beyond what could be a somewhat self-serving hierarchy of
feedback limited to the formal "chain of command."
2. Including a range of customers in the 360-degree performance assessment program
expands the focus of performance feedback in a manner considered absolutely critical to
reinventing Government Employees, typically, only concentrate on satisfying the standards
and expectations of the person who has the most control over their work conditions and
compensation. This person is generally their Manager. Service to the broader range of
customers often suffers if it is neglected in the feedback process.
What cautions should be addressed?
1. With few exceptions, customers should not be asked to assess an individual employee’s
performance. The value of customer service feedback is most appropriate for evaluating
team or organizational output and outcomes. This feedback can then be used as part of the
appraisal for each member of the team. The possible exceptions are evaluations of senior
officials directly accountable for customer satisfaction and evaluations of individual
employees in key "front line" jobs personally serving internal or external customers.
2. Customers, by definition, are better at evaluating outputs (products and services) as
opposed to processes and working relationships. They generally do not see or particularly
care about the work processes, and often do not have knowledge of how the actions of
employees are limited by regulations, policies, and resources.
3. Designing and validating customer surveys are an expensive and time-consuming process.
The time and money are best spent developing customer feedback systems that focus on
the organization or work unit as a whole.
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Q.4. Given below is the HR policy glimpse of “Zoom Video”, a multimedia company
1. It offers cash rewards for staff members
2. It promotes the culture of employee referral and encourages people to refer people
they know, maybe their friends, ex. colleagues, batch mates and relatives.
3. It recognizes good performances and gives good titles and trophies to the people who
perform well and also felicitates them in the Annual Day of the company.Identify what all aspects does it take care of, based on different levels of Maslow’s Need
Hierarchy?
Answer:
Maslow's theory of basic needs draws chiefly from human psychology. He arranged the human
needs of an individual in a hierarchical manner. Maslow proposed an individual's motivation as
a predetermined order of needs which he strives to satisfy. His model of ‘Hierarchy of Needs
‘indicates the following propositions about human behavior.
The company Zoom Video’s policy takes care of following aspects of Maslow's theory:
1. Offering cash rewards for staff members satisfy Safety Needs. If the physiological needs are
relatively satisfied, a set of needs emerge for protection against danger and threats. In an
ordered society, a person usually feels safe from extremes of climate, tyranny, violence and so
on.
2. Promoting the culture of employee referral and encourages people to refer people they
know, maybe their friends, ex. colleagues, batch mates and relatives satisfy Social Needs. If the
physiological and safety needs are fairly satisfied, the needs for love and affection andbelongingness will emerge and the cycle will repeat itself with this new centre. If he is deprived
of these needs he will want to attain them more than anything else in the world.
An individual desires affectionate relationships with people in general and desires to have a
respected place in his group.
3. Recognition of good performances and giving good titles and trophies to the people who
perform well and also felicitating them in the Annual Day of the company satisfy Esteem Needs.
Everyone has a need for self-respect and for the esteem of others. This results in the desire for
strength, confidence, prestige, recognition and appreciation. These egoistic needs are rarelycompletely satisfied. The typical industrial and commercial organization does not offer much
opportunity for their satisfaction to employees at the lower levels.
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Q.5. Describe the emerging employee empowerment practices.
Answer:
It is human nature to express discontentment when we feel it. Wherever we have literate and
aware people this is a natural process to find-fault. There is hardly any organization where theemployees do not have some voice for grievance. They may be real or imaginary, valid or
invalid, genuine or false. Whatever the nature and the cause, it produces unhappiness,
frustration, discontent, indifference and poor morale amongst the employees. Ultimately it
ends with an adverse effect on the efficiency and productivity of an employee at work.
In today’s organizations the focus is moving towards collaboration at the workplace. One of the
most common instruments established in large organizations has been the Employee
Suggestion Schemes (ESS). The ESS has proved effective in allowing employees a discrete
method of voicing their opinions and suggestion for what can be better managed in the
company. The management invites the employees suggestions on all/any issue that is a source
of irritation for the employees including grievances are open for comment. What however is
different is that the employee is encouraged to frame it as a suggestion and make a
recommendation for a change, rather than the classic fault finding approach about what is
going wrong or what is not working well. There are ESS forms/ templates that are left in
common places or the employee can download from the company intranet and fill in the
suggestion for change and drop it in boxes left common places like the coffee area or the lunch
rooms etc.. These suggestions are then collated by the HR team and on a quarterly basis the
Suggestion Committee meets to review all of the suggestions received. The Suggestion
Committee includes line managers, HR representative and Finance and Facilities &
Administration team members and senior management representative who can provide the
necessary guidance for approval of the suggestions. The committee meets and discusses each
suggestion in depth and evaluates the scope for implementation of the suggestion. The
feasibility of implementing the suggestion and its other implications are evaluated closely and
the suggestion accepted/set aside for future review/rejected. There are awards given away for
excellent ideas that help the company optimize costs, productivity and improve quality,
customer satisfaction etc.. The HR then communicates the suggestion committee report with all
employees through a mail or during the employees Open-house sessions. The employee’s ‘open
house’ also called the ‘all hands’ meeting is one more communication forum effectively used by
the senior management of a company to connect with its employees. This usually is a quarterly
or a half-yearly meeting to which all employees are invited. There is a brief sharing of the
company’s performance and the rest of the time devoted to answering any queries that
employees might have on any issue that concerns the company and its employees. This is often
followed with by informal interactions over lunch/breakfast, where once again employees can
speak to the senior executives and ask general questions. Often employees might not feel
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comfortable asking tough questions in an open forum, hence there are drop-boxes provided
where the employee can write and drop a question or an opinion that he wants the senior
management to answer. The employee need not mention his name on the question slip. If the
senior management is unable to answer a question then and there the same is reviewed
subsequently by the senior management and a response shared with all employees over mail orposted on the notice board or on the intranet site for everyone to read. Some organizations
also operate an email communication method where any employee who has a query or an
observation can write his question to the mail alias and obtain a response. Usually the HR is the
custodian of this mail id and they do the necessary review to suitably answer the questions and
seek the manager’s inputs on a as needed basis. The concept of taskforce is also a common
mechanism that organizations use to build cross-functional teams (with one representative
each from each department) that will work on concerns that are commonly voiced. For example
a leading medical transcription company wanted to review its incentive policy and in order to
have a collaborative approach put together a team of employees one each from each of the
departments including representatives from HR and Finance. The team was provided with all
the historical information they would need and were given all of 6 weeks to work on the project
and make a presentation to the senior management of the company. After the first
presentation to them and having incorporated the feedback received the taskforce then
presented the new scheme to the employees. Finally it was approved as a policy and made
effective.
Today’s organizations therefore adopt a collaborative approach to employee issues. While the
technology companies are more informal the traditional brick-and-motor companies have
formal processes. Whatever the approach whether formal or informal employees areencouraged to open-up and ask questions and perform as contended employees.
Q.6. Write a note on directive, permissive and participative type of leadership.
Answer:
A good leader displays great ability, creativity, initiative and confidence. He adds and gets
cooperation, willingness, and builds employees’ morale and motivation. There is a classic
debatable question: “Leaders are Born and Not Made”. Whatever be the outcome of this
debate, the fact remains that leaders are of a different breed and class apart. They are ordinary
people who do extraordinary Concept of Leadership. Leadership is defined as “the relationship
in which one person influences others to work Together willingly on related tasks to attain that
level which he desires.” That is to say, if there is no follower, there is no leader.
Haiman defined Leadership as “the process by which an executive or a manager Imaginatively
directs guides and influences the work of others in choosing and attaining specified goals by
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mediation between the individual and organizations in such a manner that both will obtain the
maximum satisfaction.”
Directive type of leadership: This comes under Autocrat class of leadership – He is directive and
expects obedience from followers. (Do as I say – Not, as I do) Hence, subordinates do not like
him.
Authoritarian leaders provide clear expectations for what needs to be done, when it should be
done, and how it should be done. There is also a clear division between the leader and the
followers. Authoritarian leaders make decisions independently with little or no input from the
rest of the group.
Researchers found that decision making was less creative under authoritarian leadership.
Lewis also found that it is more difficult to move from an authoritarian style to a democratic
style than vice versa. Abuse of this style is usually viewed as controlling, bossy, and dictatorial.
Authoritarian leadership is best applied to situations where there is little time for group
decision making or where the leader is the most knowledgeable member of the group.
Permissive type of leadership:
Researchers found that children under Permissive (laissezfair) leadership were the least
productive of all three groups. The children in this group also made more demands on the
leader, showed little cooperation, and were unable to work independently. Delegative leaders
offer little or no guidance to group members and leave decision making up to group members.
While this style can be effective in situations where group members are highly qualified in anarea of expertise, it often leads to poorly defined roles and a lack of motivation.
Participative type of leadership: comes under Democratic class of leadership.
Lewin’s study found that participative (democratic) leadership is generally the most effective
leadership style. Democratic leaders offer guidance to group members, but they also
participate in the group and allow input from other group members. In Lewin’s study, children
in this group were less productive than the members of the authoritarian group, but their
contributions were of a much higher quality.
Participative leaders encourage group members to participate, but retain the final say over the
decision making process. Group members feel engaged in the process and are more motivated
and creative.