MB0043 - Human Resource Management

Assignment Set– 01

Name : Deepali AwasareRegistration No. : 541010358

Learning Center : Al Hikima Institute, Muscat

Learning Center Code : 02542

Course : Master of Business AdministrationSubject : Human Resource ManagementSubject Code : MB0043

Semester : I

Module No. :

Date of Submission : Feb. 10, 2011

Marks Awarded :

Directorate of Distance EducationSikkim Manipal University

II Floor, Syndicate House

Manipal – 576104

___________________ _________________ ________________

Signature of Coordinator Signature of Center Signature of Evaluator

ASSIGNMENT MBA Semester I Human Resource Management (Subject Code – MB 0043) Set I

Q.1 Trace the phases of evolution of human resource management. [10 Marks]

Ans. Managing human resource is a complex process. A better way to understand the

philosophy of human resource management demands a thorough understanding about the

evolution of the concept itself from the ancestral concept. The historical background to the

theory of management techniques of human resources are in vogue since ancient times. But it

is from last 100 years the study of human behavior at work and techniques has become

important and formal. It has become more structured with certain basic practices established as

core and a host of other practices left to each organization to design and implement as per their

individual business driven practices.

Phases of Human Resource Management: 1. The Craft System

The Craft system phase refers to early trends noticed in Egypt and Babylon, where skills

based training was provided to people to ensure a steady flow of craftsmen required to build

huge monuments. By the 13th century, subsequently the same trend was noticed in Europe

and later craft guilds evolved to ensure not only the skill acquisition but regulate the

conditions of employment, level of skill and improved production techniques. This has

become so much practiced and relevant that in the domestic industry where generations of

skilled workers trained and became experts in a particular skill.

2. The Scientific Management Approach This phase was a key part of the industrial revolution typical of the nineteenth and early

twentieth century. The principles instilled during this phase were of mass production and

organization of work. The work skills were simple and supervisory/managerial skills. This

rapidly emerged as the assembly line approach to managing workflow. Philosophy was

employees were used efficiently and money was considered as a primary motivator.

However, over a period of time this was proved wrong as employee dissent grew and union

issues surfaced. It was during this phase that employee welfare as a key HR practice

emerged which redressed employee issues like recreational facilities, medical program and

employee grievance systems.

3. The Human Relations ApproachThis phase was the result of the famous studies undertaken by US social scientist Elton

Mayo and Fritz Roethlisberger at the Western Electric’s Hawthorne plant in Chicago.

R. No. 541010358 Deepali Awasare


The Hawthorne Studies: It began in 1927 with a group of studies conducted at the

Hawthorne plant of Western Electric, an AT&T subsidiary. These studies were started

prompted by an experiment carried out by the company’s engineers between 1924 and

1932.

During the study, two groups were studied to determine the effects of different levels of

illumination on worker performance. One group received increased illumination, while the

other did not. A preliminary finding was that, when illumination was increased, the level of

performance also increased. However they also found that, productivity also increased when

the level of illumination was decreased almost to moonlight levels. Interpretation made by

these results was that the employees involved in the experiment enjoyed being the centre of

attention; they reacted positively because management cared about them. The reason here

was not the physical but the psychological impact of the employee’s attitude towards the job

and towards the company. Such a phenomenon taking place in any research setting is now

called the Hawthorne effect.

The team then conducted a lengthy series of experiments extending over a six year period.

The conclusions they reached served as the bedrock of later developments in the human

relations approach to management. Among their key findings were the following:

Economic incentives are less potent than generally believed in

influencing employees to achieve high levels of output.

Leadership practices and work-group pressures profoundly influence employee

satisfaction and performance.

Any factor influencing employee behavior is embedded in a social

system. To understand the impact of pay on performance, one also has to

understand the climate that exists in the work group and the leadership style of the

superior.

4. Leadership Style and Practices: This phase is a consequence of the Hawthorne Studies, where worker attitudes, morale,

and group influences became a concern of researchers. A notable development of the

nature occurred shortly after World War II at the University of Michigan. A group of social

scientists formed an organization, to study those principles of leadership that were



associated with highest productivity. Past World War II years, HRM focus was intensified on

employee productivity and on the availability of the competent managerial personnel.

Here the conclusion was supervisors of high-producing units behaved differently from those

of low-producing units. Different style of noted of high-producing supervisors were

They provided more emotional support to subordinates

Plan, regulate and coordinate the activities of subordinates, but did not become

directly involved in work tasks.

Exercise general rather than close supervision.

There was virtual disappearance of owner managers in this phase and growth of

professional managers capable of managing according to professional code has aroused in

this phase

5. Organizational Sciences Approach: This phase has brought the focus to the scientific process within organizations that can

impact employee experience, and less on just the individual. Today’s organizations focus on

building their processes and policies and compete to emerge as ‘preferred employers’ (best

employer). Here the competing organizations woo the employees through advertising more

and better employee-friendly initiatives like work-from-home jobs, careers for married

couples, global work assignments and internal job postings and world class workplace

infrastructures from in-campus cricket grounds to gymnasiums for employee wellbeing.

Today`s HR is based upon organizational sciences approach.



Q.2 Explain the various techniques and methods used in selecting employees. 10 Marks

Ans. Different types of positions require different kinds of selection techniques. Choosing the right techniques will help to recruit the best person for the position. The selection techniques depend on the particular skills, attributes and knowledge required for the position. There is no shortcut to fair and accurate evaluation of a candidate. However it should be emphasized that the systematic approach must be used to the selection of employees. There are various hiring procedures but organization should use the proper selection methods to ensure they hire quality candidates. It is important that to match the selection method with the selection criteria that are key to the position.

Following are the various techniques and methods in selecting employees

Preliminary Interview: Preliminary interviews or initial interviews, also known as screening

interview. It is a short interview conducted over telephone or face – to – face. Its objective is

to eliminate those candidate who do not meet the minimum criteria laid down by the

employing organizations or if there are large number of candidates. It helps in short listing of

suitable candidates for the further interview.

Application Blank: It is a template to get information from the prospective candidate. It is

the first tool to screen the applicants and gather the verifiable basic historical data from the

candidate. Application blank provides data on education, work experience, names and

addresses of previous employers, references, reasons for leaving prior jobs, organizational

memberships, and hobbies. This enables the recruiter to qualify the candidate to the next

level in the selection process. The blank aids in the interview by indicating areas of interest

and discussion. It also is an excellent document to store the information for, later reference.

Check of References: The use of references is common in most selection procedures. It

involves minimum of effort and time/money. The objective is to obtain evaluation of prior

employers and professional colleagues, who have known the candidate in a professional

capacity. Checks on references are made by mail or telephone, and occasionally in person,

and by using a reference form.

Skill / Psychological Tests: The use of psychological tests is common in the lower levels in

an organization as it serves as excellent qualifying criteria. It is also very useful in jobs that

are dependent on a skill or a specific competency, as it makes fair assessment of the

individual. There is a direct relationship between the size of the firm and the use of such



tests in hiring. Most of the larger companies do a more detailed and accurate selection

procedure to utilize some form of employment testing.

Employment interview: Interview format is determined by the nature of the organization.

However it is a prominent method of selecting employees. It is defined as a two way

systematic conversation between an interviewer and applicant, initiated for obtaining

information relevant to a specific study. It involves not only conversation, but also learning

from the respondent’s gesture, facial expressions and pauses, and his environment.

Interviewing requires face to face contact or contact over telephone.

Types of Interview: There are four kinds of interview, which are explained below

1. Preliminary Interview: Preliminary interview is conducted to decide whether a more

detailed interview with the candidate will be worthwhile. Here the applicants are given

the information on job details; this also makes the candidate to decide whether the job

will suit him. This method saves the company’s time and money.

2. Stress Interview: Stress Interview is a technique that deliberately places the job

candidate in a stressful situation to observe how the applicant reacts to the situation.

Here planned and intentional efforts are made to create pressure. Methods used are

making candidate wait needlessly for interview, criticism for candidate’s opinion and

keeping silent for extended period. The interviewer conducting the stress interview

should be trained and with good interviewing skills to select the candidate.

3. Depth Interview: Conducted usually one -to- one basis, this is an intensive and

searching interview aiming at studying the respondent’s opinion, emotions or

convictions on the basis of an interview guide. Depth interview covers the areas such

as work experience, academic qualifications, interest and hobbies. This is generally a

lengthy procedure designed to encourage free expression of affectively charged

information. The interviewer should totally avoid advising or showing disagreement.

4. Patterned Interview: In this type of technique there is a structure which consists of

combination of direct and indirect questions, which is asked to each candidate. Asking

the same questions to each candidate allows the interviewer to compare and contrast

candidates’ backgrounds against each other as well as against the position

requirements. It also gathers information on the first two areas of assessment, the



candidate’s skills and abilities, and personal preferences. One advantage of a

patterned interview is that systematic and chronological information is obtained, and

hence this yields to statistical analysis.

Approval by the Manager: In approval by the manager technique, when the manager takes over, the emphasis tends to

switch toward more specifically job oriented worker characteristics such as training and

relevant past experience.

Medical Examination: The medical examination is an examination which varies from a

very comprehensive examination and matching of an applicant’s physical capabilities to job

requirements to a simple check of general physical appearance and well-being. The

objectives here are

1. To ascertain the applicant’s physical capabilities.

2. To protect the company against unwarranted claims under workers’ compensation

laws, or against lawsuits for damages.

3. To prevent communicable diseases from entering the organization.

Induction/ Orientation: Induction is concerned with introducing or orienting a new employee to the organization.

Induction programs could be of duration of 1-3 days and even up to 1/3/6 months depending

upon size and type of organization. Common objectives of an Induction program are:

1. Overview of the organization, its history, its hero’s and important stories in the life of

the firm like mergers, acquisitions, JV’s, expansion in new countries etc.

2. Organization Vision / Mission and Objectives statement, its structure, hierarchy of the

top and the senior management, structure of the teams/divisions.

3. Overview of the HR policies and processes and introduction to the facilities team like

IT team and other relevant teams per the location of joining.

4. Handover to the manager and induction at a team level on specificities related to the

job and its responsibilities.

Organizations also build processes by which the new employee provides feedback on the

on- boarding experience and use this information to improve the induction process.



Q. 3 A company is being set up by a group of 3 professionals. The business objective is to sell mobile phones of a Chinese company which has come up with an inexpensive range of handset ranging from Rs.1200 to Rs.7000. They need to submit a human resource plan to their investors. Explain the process of Human Resource Planning system for this company, which covers all important steps needed for HRP.

Ans. Human Resource Planning is a process by which a management determines, how an

organization should move from its current manpower position to its desired manpower position.

It consists in projecting future manpower requirements and developing manpower plans for the

implementation of the projections.

The process of HR Planning begins with considering the organization strategies and objectives. Here the company is being set up by a group of 3 professionals and its objective is to sell mobile phones of a Chinese company which is available in inexpensive range of handset ranging from Rs.1200 to Rs. 7000

Since the group wants to start a business, so before doing Human Resource Planning, they

should do the Business Planning; they should decide what the goals are for the year and what

the long-range goals are. Once the business plan is ready then should go about achieving them

and therein the planning for the human resource. 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. Business planning is done, considering the following

Set the objectives of the company

Set the short term goals

Set the long term goals

Once the goals and objectives are set, then they should do Human resource planning. Human

Resource planning is the predetermination of the future course of action chosen from a number

of alternatives. It should estimate future organizational structure and manpower requirements,

plan the job requirements and job descriptions. HR planning is the processes including

forecasting, developing and controlling by which a firm course that it has the right number of

people and right kind of people at the right places at the right time doing work for which they are



economically most useful. Human resource plan must incorporate the human resource needs in

the light of organizational goals. And it should be based on following

1. Human Resource plan must be directed towards well defined objectives

2. Human resource planning must ensure that it has the right number of people, at the right

time, doing work for which they are economically most useful.

3. They should have well-defined job analysis and job description

4. Human Resource Planning should have the way for an effective motivational process.

5. A human resource plan should take into account the principle of periodical

reconsideration of new development and extending the plan to cover the charges during

the given long period.

Human Resource Planning SystemThe steps in the HRP process is a systematic set of activities carried out in a chronological

manner. Each step needs to be evaluated and debated with all possible information gathered

from the external as well as internal environment.

1. Purpose of Human Resource Planning: Human Resource Planning fulfils individual as

well as organizational goals. It provides balance between the future human resources needs

and the future enterprise needs. And this is done with the clear objective of maximizing the

future return on investment in human resources.

2. Estimating/Forecasting the future Manpower Requirements: The first step in the

process is to arrive at the desired organizational structure at a given point in time. Mapping

this structure with the existing structure helps in identifying the gap in resources

requirement. The number and type of employees needed have to be determined. In addition

to the structure there are a number of external factors that affect this determination. They

include business forecasts, competitor strategy, expansion plans, product/skills mix

changes, profit/revenue growth projections, in addition to management philosophy and

government policies. This step also includes an analysis of the external labour/talent

environment, its demographics, demand/supply of the required talent, and cost

considerations. Forecasting provides the basic premises on which manpower planning is

done. Forecasting is necessary for various reasons, such as:



The challenges of the general economic business cycles have an influence on the

short-range and long-run plans of all organizations. These are inflation, wages, prices,

costs and raw material supplies.

An expansion / growth initiative might need the business to use additional machinery

and personnel, and a re-allocation of facilities, all of which call for adequate advance

planning of human resources.

Changes in management philosophies and top management leadership styles.

The use of new technology (such as the introduction of automatic controls, or the

mechanization of materials handling functions) requiring a change in the skills of

workers, as well as a change in the number of employees needed.

Very often, changes in the quantity or quality of products or services require a change

in the organization structure. Plans have to be made for this purpose as well.

3. Auditing Human Resources: Once the future human resource needs are estimated, the

next step is to determine the present supply of manpower resources. This is done through

what is called "Skills Inventory". A skills inventory contains data about each employee’s

skills, abilities, work preferences and other items of information which indicate his worth to

the company. Skills inventory are also referred to as competency dictionaries. This

information is usually retained as part of the performance management system with the HR

department. This step in the HRP system helps identify the existing profile of the manpower

and its efficiency. It helps highlight where the organization is vs. where it ought to be. The

step concludes with identifying clear gaps in the skills / manpower mix required to meet the

upcoming business objectives.

4. Job Analysis: After having decided how many persons would be needed, it is necessary to

prepare a job analysis. The recorded details of training, skills, qualification, abilities,

experience and responsibilities, etc. as needed for a job are studied. Job analysis includes

the preparation of job descriptions and job specifications.

5. Developing a Human Resource Plan: This step refers to the development and

implementation of the human resource plan, which consists in finding out the sources of

labour supply with a view to making an effective use of these sources. Some important

considerations at this point are:

Specific roles/disciplines being hired for, of them which roles are pivotal for the business

Competencies and capabilities needed

Manager vs. employee hiring



Hire internally vs. External sourcing

Planning for new skills through training existing staff vs. hiring new teams

In case of surpluses, planning for redeployment / reduction in workforce as required

Succession planning for key positions in the company

HR planning is a highly important and useful activity without clear cut planning, an estimation of

the organization’s human resource needs is reduced to more success work.

1. Planning defines future manpower needs and this becomes the basis or recreating and

developing personal

2. Employees can be trained, motivated and developed in advance and this helps in

meeting future needs for high quality employee

3. Change in technology has attached more importance to knowledge and skills resulting in

surplus manpower in some areas and shortage in other areas. HR planning helps in

creating balance in such a situation.

4. Jobs are becoming more and more knowledge oriented. This has resulted in a changed

profile of H.R because of increased emphasis on knowledge, recruitment costs have

also increased.



Q.4 Explain Thayer and McGhee ‘Assessment of training requirement’ model.

Ans. Assessment of Training Requirement: The first step in designing a training and

development program is to conduct a needs assessment. Both the organization’s demands and

that of individual’s needs are to be considered. New kind of jobs with diversification of product

lines and new technology or a shift in organizational culture or ways of conducting business is

common organizational needs. On the other hand in individual need based training factors

considered are demands that pertain to individual’s growth and development, including

induction training for new hire’s, or training necessitated by job rotation due to an organization’s

internal mobility policies.

Thayer and McGhee Model: The Thayer and McGhee model is based on three factors:

1. Organization analysis

2. Task analysis

3. Individual analysis

Organization Analysis: Total Organization Analysis is a systematic effort to understand

exactly where training efforts needs to be made in an organization. It involves a detailed

analysis of the organization structure, objectives, human resources and future business plans,

and an understanding of its culture. Here the step is establishing a clear understanding of both

short-run and long-run business and people goals. Long-term objectives are broken down into

specific strategies and short-term goals for each of the units/departments. Short-term goals are

constantly in need of adaptation to the changing environment, both external and internal.

Requirements of organization analysis are

a. An adequate number of employees available to ensure fulfillment of the business

operation.

b. Employee performance is up to the required standard.

c. The working environment in their units/departments is conducive to fulfillment of tasks.

In order to ensure the first two requirements a human resource inventory needs are to be made

with respect to positions, qualifications, vacancies, replacements and training time required for

replacements. Various efficiency and productivity indexes, or ratios, cost per unit etc, can be



worked out to determine efficiency and adequacy, in terms of under-manning or over-manning,

of the workforce.

It also includes diagnosis of the organization climate or culture. Rules, procedures, systems and

methods all contribute to the making of the environment. It is also determined by the attitude

that the people have in the organization. These attitudes result from the person’s experience

both within and outside the organization, and training inputs should be effectively used to effect

the changes of attitude and of the organizational climate. In analyzing the organization climate,

both direct and indirect methods could be used. Direct methods are observation, use of

questionnaires, and interviews. Reliance or indirect methods would not give a clear

understanding of the attitudes and predispositions of employees. In fact, factors such as low

absenteeism and low turnover are not by themselves indicators of positive or negative attitudes,

and high or low morale. So careful analysis should be made to study each indicator in a

particular situation in conjunction with more direct methods like attitude surveys.

Task Analysis: It consists of a detailed examination of each job, its components, its various

operations and the conditions under which it has to be performed. The focus here is on the task

itself and the training required to perform it, rather than on the individual. This will indicate the

skills and training required to perform the job at the required standard. It also provides data

about a job or a group of jobs and the knowledge, skills, attitudes and abilities needed to

achieve optimum performance.

Standard of Performance (SOP): It is an expected performance of a job. Unless such

standards are attained, not only will inter-related jobs suffer, but organizational viability

and the expectations of the job will be affected. If the standards set for the performance

of a job are known, then it is possible to know whether the job is being performed at the

desired level of output or not. Knowledge of the task will help in understanding what

skills, knowledge and attitudes an employee should have.

Methods: Task analysis entails not merely a simple listing of the various job

components, but also of the various sub-tasks and standard of performance.

Conventional methods of job analysis are usually suitable for task analysis. They are:

1. Literature review regarding the job.

2. Job performance.

3. Job observation,



4. Data Collection regarding job interviews.

For blue-collar employees, more precise industrial-engineering techniques, like time and

motion studies, are to be used, and for white-collar employees, work sampling

observation, interviews, and job performance data analysis are to be employed. The

focus in task analysis approach to identifying training needs is with the clear objective of

enhancing the performance standard of a given task. This information is then utilized to

establish the training program for the employee. It helps identify the skill required, either

in terms of education or training, to perform the job, knowledge, and finally attitudinal

pre-dispositions such as the attitudes, towards safety, or interpersonal competence that

will ensure that the job is performed optimally.

Individual Analysis: Here the focus is on the individual employee, his abilities, inputs required

for job performance, or individual growth and development in terms of career planning. The

common source for this needs analysis usually forms parts of the performance assessment

process. Clues to training needs can also come from an analysis of an individual’s or a group’s

typical behavior. The primary sources of such information are:

Observation at place or work, examination of job schedules, quantum of spoilage,

wastage, and clues about interpersonal relations of the employees

Interviews with superiors and employees

Comparative studies of good vs. poor employees, to identify differences, skills and

training gaps

Personnel records

Production reports

Review of literature regarding the job and machines used. Job-knowledge tests, work

sampling and diagnostic psychological tests also provide information about

employees.



Q.5 Write short notes on:

Succession Planning Career Planning

Ans. Succession Planning

Succession planning is a process for identifying and developing internal people with the

potential to fill key leadership positions in the organization. Succession planning increases the

availability of experienced and capable employees that are prepared to assume these roles as

they become available. The philosophy here is the top talent in the organization must be

managed for the greater good of the organization. Objectives tend to be core to succession

planning are

Identify those with the potential to assume greater responsibility in the organization

Provide critical development experiences to those that can move into key roles

Engage the leadership in supporting the development of high-potential leaders

Build a data base that can be used to make better staffing decisions for key jobs

Succession planning involves periodical review of top executives and those in the next-lower

level to determine several backups for each senior or key position in the firm. It also involves an

examination of strategic plans and HR forecasts for all identified key positions. A review of all

positions those are critical for the business for its continuity that is not just the senior level

positions but review of all potential candidates who might be able to move to these positions

either right-away or in the near future. This exercise is carried out by the senior management or

committee of top managers of the unit/subsidiary and facilitated by the HR team, who then

outlines a developmental activity for them.

These activities include a formal assessment of the performance of potential candidates and

written individual development plans for the candidates. All members in a committee voice

opinions about the potential candidates that are proposed. After the approval on a potential

candidate further planning for grooming the candidate is done by determining and clarifying the

requirements of the managerial position and development plans. These development plans then

translate into the individual’s development plan and HR along with the immediate manager work

with the individual to execute the same. A succession planning exercise concludes with an

organization chart of all key positions with listing of possible potential candidates and the

readiness rating for each potential candidate.



Benefits of Succession Planning: It provides a clear context to strategic business planning as the key positions for the

business’s success are planned.

Provides a more systematic basis to judge the risk of making particular succession and

developmental moves.

Bring focus to systematized succession a plan that scientifically identifies potential

candidates to ensure business continuity.

Enables the identification of high potential and future leaders, whereby the thereafter the

manager/HR can engage with them for leadership development initiatives.

Reduces randomness of managerial movements.

Helps anticipate problems before they get started – and thereby avoid dysfunctional

situations.

Provides scientific approach for arriving at succession decisions as part of the overall

human resource planning exercise – connecting formats (data, timing) with process

(judgment, discussions, analyses)

Helps plan for internal promotion opportunity

Provides early warning if succession does not exist for a position allowing for lateral

hiring from the market.



Career Planning

Career refers to changes or modifications in employment during the foreseeable future. So the

career planning remains a lifelong process. Career is defined as an “individually perceived

sequence of attitudes and behavior work-related activities and experiences over the span of a

person’s life.” In normal parlance the term career has both an internal and an external focus. An

internal focus refers to the way an individual views his/her career and the external or objective

focus refers to the actual series of job positions held by the individual. In an organizational

context career development has two dimensions, which are as follows

Career Planning – Done by individual employee

Career Management - Done by organization

Career planning is a self-driven process and is a deliberate attempt by an individual for self

assessment and to gather information about oneself or become more aware of his/her skills,

interests, values, opportunities and constraints preferred environments. It requires an individual

thinking to identify career-related goals and options and establishing plans towards achieving

those goals. Having a career plan builds a commitment towards achieving it and is viewed as an

excellent personal goal-setting exercise for self motivation. During this phase one has to identify

and evaluate possible occupations, explore alternatives.

Career management is organizational process that involves preparing, implementing and

monitoring career plans. Organizations establish policies that provide for multiple career path

options and an employee can choose and pursue from it. This is supported with a lot of training

and development activities. HR managers serve as internal consultants responsible for

designing the career development systems. A variety of career development activities and tools

exists for use in organizations. Some are individual career planning tools and others are

commonly used for organizational career management. In general the most effective career

development programs will use both types of activities.

Self Assessment Tools: These are usually technology enabled on-line tools that forms a

part of the performance appraisal system and allow the individual to identify areas of

strengths and career paths that would leverage their strengths the best.

Individual Counseling: This is a process for individuals to discuss as part of the

performance management process with their immediate managers and share and take



feedback on the appropriateness of the choices and how to go about pursuing it.

Organizations also provide for formal ‘mentoring programs’ to which an employee can enroll

and sign up a mentor who can then provide the support and counseling on the best career

option.

Information Services: organizations have established policies on what skills and

experiences that each job in the organization requires. Jobs with similar skills and

experiences are clubbed together to create parallel career paths.

Initial Employment Programs: Organizations also run internship and apprenticeship

programs wherein the individuals aspiring to do a particular job can spend some time as a

temporary employee to explore interest and skill fitment for the job/role. (e. g. Anticipatory

socialization programs, realistic recruitment, and employee orientation program);

Organizational Assessment Programs: Through the use of Assessment Centers

organizations can help an employee identify areas for improvement and means of building

those skills. So he can achieve his career plans. Certain organizations offer Psychological

Testing instruments which profile the employee’s strengths and roles and responsibilities

he / she will best fit into.

Developmental programs focus the effort of the employee towards helping the employee to

achieve his career goals. The Assessment Centers, Job rotation programs, in-house

training, and tuition refund plans, and mentoring, all prove effective tools to help the

individual in career planning.



Q.6 Discuss Individual evaluation methods used for performance appraisal.

Ans. In individual evaluation methods the employee is evaluated one at a time without directly

comparing him/her with other employees.

Following are the Individual Evaluation Methods used for performance appraisal

Graphic Rating Scale: This is the most widely used performance rating technique which is

based on rating scale. The rating scale is of 3, 4, 5 or even 10 point rating scale. The

evaluator is presented with a list of assessment characteristics and asked to assign a

number rating on each of the characteristics listed. The number of characteristics varies

from a few to several. It aims to measure the quality of performance and ability to do the

present job. The ratings can be in a series of boxes, or they can be on a continuous scale

(0-9) or so. These ratings are then assigned points. For example, outstanding may be

assigned a score of 4 and unsatisfactory a score of 0. Total scores are then computed to get

the evaluation of the candidate. In some cases evaluators also provides supporting

comments for each rating in a sentence or two.

Forced Choice: In forced choice technique, the evaluator chooses from a set of descriptive

statements about the employee. The statement items are grouped in such a way that the

evaluator cannot easily judge which statements apply to the most effective employee.HR

specialists/consultants prepare the items for the form, and managers or other HR specialist

rate the items for applicability by determining which statements describe effective and

ineffective behavior. The Manager then evaluates the employee. The HR Department adds

up the number of statements in each category, and they are summed into an effectiveness

index. Forced choice can be used by superiors, peers, subordinates, or a combination of

these in evaluating employees.

Essay Evaluation: Here the evaluator describes the strong and weak aspects of the

employee’s behavior. Typically this is combined with another form, such as a graphic rating

scale. The essay summarizes and elaborates on some of the ratings, or discusses added

dimensions which are not captured by the scale. Essays can either open ended or there are

guidelines on the topics to be covered. The essay method can be used by evaluators who

are superiors, peers, or subordinates of the employee to be evaluated.



Management by Objectives (MBO): It is one of the most popular and most effective

individual evaluation methods in use today. At the beginning of the year the Manager and

employee to be evaluated jointly set clear objectives/targets in advance for the employee to

achieve during a specified period usually a year. The objectives framed are of quantitative

nature and are popularly called by the following names:

1. KRA-key result areas

2. KPA -key performance areas

3. Targets

4. Commitments

These objectives are designed using the SMART framework i.e. Specific, Measurable,

Achievable, Results oriented and Time bound. Then the objectives are broken up into half

yearly, quarterly and even monthly objectives, keeping SMART framework. All along the

process both the employee and the manger are in consensus of the objectives, timelines

and the deliverables. At the end of the review year, the MBO’s are reviewed for completion

with the SMART framework. In case of a new employee or someone moving

jobs/assignments between teams after about 6-8 weeks of being in the job, then again this

process is undertaken and the objectives are set. The evaluation too is a joint review of the

degree of achievement of the objectives. This approach combines the manager and self-

evaluation systems.

Critical Incident Technique: In this technique, HR specialists and operating managers

prepare lists of statements of very effective and very ineffective behavior for an employee.

These are the critical incidents. The HR specialists combine these statements into

categories, which vary with the job. Once the categories are developed the statements of

effective and ineffective behavior are provided to the managers. The manager maintains a

log for each employee right through the evaluation period. The manager records behaviors

of critical (outstandingly good or bad) in each of the categories. This log is used to evaluate

the employee at the end of the period. The manager can be specific in making positive and

negative comments, and it avoids “recency” bias. The critical incident technique is normally

to be used by superiors than in peer or subordinate evaluations.

Checklists and Weighted Checklists: The checklist is a set of objectives or descriptive

statements. If the employee possesses the trait listed and manager believes that then he

checks the items, otherwise it is left blank. A rating score from the checklist equals the



number of checks. Managers or HR specialists familiar with the jobs to be evaluated prepare

a large list of descriptive statements about effective and ineffective behavior on jobs, similar

to the critical incident process. Judges who have observed behavior on the job sort the

statements into the ones describing behavior that is scaled from excellent to poor (usually

on a 7-11 scale). When there is reasonable agreement on an item it is included in the

weighted checklist. The weight is the average score of the raters to the checklist’s use.

The Managers or other raters receive the checklists without the scores, and they check the

items that apply, as with an un-weighted checklist. The employee’s evaluation is the sum of

the scores (weights) on the items checked. Checklists and weighted checklists can be used

by evaluators who are superiors, peers, or subordinates, or by a combination.

Behaviorally Anchored Rating Scales: the most prevalent technique which is a variation

of the critical incident approach is the behaviorally anchored rating scale (BARS). This

technique is also called the behavioral expectation scale (BES).

Managers give descriptions of actually good and bad performance, and HR specialists

groups these into categories (five to ten is typical). The items are once again evaluated by

managers (often other than those who submitted the items). A procedure similar to that for

weighted checklists is used to verify the evaluations (outstandingly good, for example) with

the smallest standard deviation, hopefully around 1.5 on a 7-point scale. These items are

then used to construct the BARS. The final output is a set of statements for each item from

among which the manager chooses the most appropriate one for the employee based on

his/her performance.


MB0043 - Human Resource Management

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