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Queen Margaret University, Edinburgh

B.A. International Hospitality Management

Institute For Technology and Management- Institute

of Hotel Management and Catering Technology.

Navi Mumbai

STRATEGIC HUMAN RESOURCE MANAGEMENT

Though people are recognized as most valuable resource

there is seldom a matching long term strategy of human

resource management (and asset formation) at

organizational level

2008

Module no: - B 3106

Module Coordinator: - Prof Arpita.R.Pandey

Module Teacher Team: - Prof Daisy Narendra, Prof Mona Sinha

Name: - KULDEEP SINGH NEGI

Matriculation no.: - 08006553

Word count: - 2000

A company is known by the people it keeps: - Unknown. The

organization is form by its

people and as a result, the success and failure of organisation is affect if the

people working there are affected. In customer driven service sector

organisation its a challenge to manage people or employee. Such service

driven organisation tends to take a long- term view of managing their

employee than only focussing upon the regular operational of monitoring

their workers. There is an emphasis on human resource planning and

integration between the management of people resources and corporate

business strategies are emphasised in strategic human resource management

(SHRM). Caring for customer and delivery of high quality services to

customers and clients are additional dimensions of managing all resources

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strategically in excellent organisations. Definition SHRM is the explicit

management, planning, integration, leadership of resources and

assets (welsh 2008). Obvious this meansPeople like Employees, managers,

supervisors, colleagues and other stakeholders in the organisation.Cultur e

which means The management of values, attitudes, behaviour, meanings

actors in the organisation (the people) bring to the social world that is their

work e.g. in a hotel/supermarket/hospital.

Performance = the management of standards, output, productivity, quality,

and service.

Learning = the management of training, staff development, flexibility, the

establishment

of continuous learning within service organizations.O utcomes the

attainment of high value added services, customer satisfaction, profitability,

market niches, new products and integration of operations with the business

strategy of the organisation. Marketing is of course strongly link with this

corporate objective (welsh 2008).

Assets or Resources An organizations employees are its human capital, a

term more

useful than human resources because it allows us to consider employees as

assets rather than as resources that are to be consumed. One might think of it

as simply interchangeable with the concept Human Resources. The

differences in the concepts are key to understanding how Human Capital

might be able to help improve understanding and integration of employee

issues in strategic planning (Batten 1999).

The Human Capital view of people is based more on an economic

perspective.Hum an

Capital views people as a valuable asset rather than merely as a cost. Assets

are those

things that bring long term value to an organization. When viewed this

way, it is easy to think of people and/or what they accomplish as adding

long term value to an organization. Only when the right employees are on

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board and are provided the training, tools, structures, incentives, and

accountability to work effectively is organizational success possible.

(GAO, 1999, page 102.)

One would not equate people with more classic assets such as facilities,

property or financial capital. However, this concept makes it easier to see the

need to invest in and develop people as an asset, much as we invest in

other types of assets. It is easier to understand why it is important to invest

resources to obtain and keep the right people in the right jobs, and to

develop them through appropriate training and recognition.

Human Capital is not a cost to be minimized, but a strategic asset to be

enhanced.(GAO, 1999, page 102) Human Capital is subject to intangible factors such

as leadership and work environment. People also have a great capacity for a

constant influx of energy, are flexible, and are adaptive to change. The most

important point to remember is the human part of human capital. People

respond as whole individuals; organizations need to consider the whole

individual in managing their human capital.

We must also keep in mind that it is not what we spend on employees that

make them an asset. Rather, it is what value they bring to the organization.

Increasing our investment in them in appropriate ways will increase their

value to the organization. It is not as easy as making everyone happy, in the

hopes of getting better mission accomplishment. Though clearly employees

who feel valued will likely accomplish more (Batten 1999).

Effective management of human resources is necessarily strategic. One

cannot hope to continue to accomplish the work without having some future

view of who might be leaving and when, what skills might be needed and

why, and some idea of the current impact of the local economy and

employment trends. We need to remember that effective management of

human resources must be, and is, conducted in large part by line managers.

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Some good managers out there are making the strategic link between

mission and people (Batten 1999).

HUMAN RESOURCES MANAGEMENT EXAM REVISION

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Job Analysis and Work Design

A definition of job analysis

According to James M. Higgins (1994) Job Analysis is the process in whichexisting and potential jobs are analyzed or reanalyzed, designed or

redesigned, to ensure that they help fulfill the companys mission.

Job Design is a process of improving the jobs by taking into consideration

the technological and human factors in order to enhance organizational

efficiency and employee job satisfaction. In designing a job, the designer

may combine several takss and responsibilities of different job together,

exclude certain responsibility or automate certain tasks. The JA information

is useful in determining the lines of authority and responsibility and alsodetermining the necessary relationship among work groups.

Job Analysis Process

1. The Job Analysis process begins with firstly determining the use of

the job analysis information. The analyst, in conjunction with

management, must decide on the purpose and desired uses of the job

analysis data. Job analysis data may be used for HRP and

recruitment, developing sound employee selection and placement

procedures. It could also serve as the basis for training anddevelopment.

2. The next step in the JA process is to review background

information. This may be gleaned from organization charts which

show how the job in question relates to other jobs and where it fits in

the overall organization. Information could also be had from process

charts and existing job descriptions.

3. Thirdly, the position to be analyzed is selected. When there are

many similar jobs, it is better to select a representative position to be

analyzed in order to save time. For e.g. jobs that are difficult to lean

and performance or for which the organization is constantly having to

hire new employees are essential to analyse.

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Job Analysis

Definition

How can it make competitive advantageUsefulness of JA to achieve org objectives

Products of Job AnalysisUsefulness an importance of JA information

Strengths and weaknesses of each JA informationWhy orgs moving towards competency approach

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4. The fourth step involves the collection of the job analysis data.

Information may be collected on the actual work activities

performed, human behaviors, on machines, tools, equipment,

performance standards, physical working conditions, work

schedule and human requirements of the job. Ther area wide

variety of procedures, ranging from qualitative to quantitative that can

be used tin analyzing jobs.

5. Fifthly, the informationfrom the job analysis needs to be reviewed

with the worker performing the job and with his/her immediate

supervisor. This will help to confirm that the information is factually

correct and complete. It also helps to gain the employees acceptance

of the job analysis data and conclusions by giving that person a

chance to review and modify the description of his or her job

activities.

6. Lastly, a job description and job specification are developed. These

are concrete products of the job analysis. The job description is a

written statement that describes the tasks, duties and responsibilities

of the job. The job specification summarizes the knowledge, skills

and abilities for getting the job done. In developing the job

description, the duties should be clear and direct, the wording should

be specific and the scope and nature of the work should be clearly

indicated.

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Uses of the Job Analysis

Almost every HR activity requires some type of information from the job

analysis exercise. As such JA is known as the building block of all

personnel functions.

Recruitment and Selection:

According to Higgins, recruitment is a series of activities intended to attract

a qualified pool of job applicants. Before an organization can find capable

employees, recruiters need to know the job specification for the positions

they are to fill. A job specification is a statement of the KSAs requirements

of the person performing the job. In addition, job descriptions are used to

select and orient employees. The job description is a statement of the TDRs

of a job. Both the job analysis and job descriptions are products of job

analysis.

Training and Development:

The job analysis is an essential element to the development of training

programs; it serves as the basis for the training needs assessment (the first

step in the development training programs.

The training needs assessment is a matter of comparing the job holders jobperformance with the actual requirements of that job (as specified in the job

description). If there is no discrepancy in this comparison, then we have no

need for training. On the other hand, if we identify a gap between the

"actual" and the "ideal", then we have potentially identified a need for

training.

Performance Appraisal

This is a process by which an organization carries out a critical assessment

of the performance of its employees for the purpose of rewarding effective behaviour, improving those which need improving or disciplining where

required. Through job analysis, the HR department can identify the

behaviours and results which distinguish effective performance from

ineffective performance. The job description can be used as a yardstick to

ascertain if the performance is in synch with what is detailed in the job

description.

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HRP

Fisher et al (1996) defined HRP as the process by which organizations

anticipate future staffing needs and plans programmes to ensure that thecorrect number and type of employees are available when needed. Job

analysis is useful as it helps to provide information about the level of skills

requirement in the different jobs to ensure that enough employees are in

house to fill the HR needs of the Strategic Plan. The organization can also

use the job analysis information for projecting work force needs. By

observing how jobs change over time, an organization will be in a better

position to predict how jobs are likely to change in the future.

Job Evaluation (Compensation)

This is a process of finding out the relative worth of a job to the organization

so that internally equitable pay structures can be set up. The worth is based

on what the job demands of an employee in terms of skills, effort and

responsibility and conditions and hazards under which the work is

performed. All of these factors are assessed through job analysis.

Methodology of Job Analysis

A variety of methods are used to collect information about jobs. The most

common methods are:

Observation:

Here, the job analyst observes the worker doing the job in order to

obtain first-hand knowledge and information about the job being

analyzed. The Observation method of Job Analysis is suited for jobs

in which the work behaviors are

1) observable involving some degree of movement on the part of the

incumbent, or

2) job tasks are short in duration allowing for many observations to be

made in a short period of time or a significant part of the job can be

observed in a short period of time, or 3) jobs in which the job analyst

can learn information about the job through observation.

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Jobs in which the Observation method is successful include machine

Operator, Construction Worker or skilled craft workers.

Advantages

This method allows for a deep understanding of job duties. Withother methods of Job Analysis, sources of error (omissions or

exaggerations) are introduced either by the incumbent being

interviewed or by items on the questionnaire. With direct observation

of the incumbent, these sources of error are eliminated.

Direct Observation also allows the job analyst to see (and in some

cases experience) the work environment, tools and equipment used,

interrelationships with other workers, and complexity of the job.

Disadvantages

One problem with the direct Observation method of Job Analysis is

that the presence of an observer may affect the incumbent causing the

incumbent to alter their normal work behavior. It is important for the

analyst to be unobtrusive/discreet in their observations. Incumbents

may alter their work behavior if they know they are being observed.

This method is not appropriate for jobs that involve significantamounts of time spent in concentration or mental effort.

Interview:

This method consists of asking the employee/supervision questions

about the job under review.

Advantages:

The reason for this method is that jobholders are most familiar withthe job and can supplement the information obtained through

observation.

Disadvantages:

The incumbent may exaggerate or omit tasks and duties.

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Interviews are time consuming and training is needed. The interviewer

must be trained in proper interviewing techniques.

There is the natural problem of people not establishing and

maintaining rapport with each other during an interview

Role Of The Interviewer In Job Analysis:

Help the employee feel welcome and at ease. Break the ice by being

warm and welcoming. Offer coffee or water, offer to take their coat,

ask if they had any trouble finding your office. A few minutes of

pleasant general talk will set a positive tone for the interview.

Arrange a private place for the interview, and make arrangements so

that you are not interrupted and so the employee may speak candidly

about their job.

Give the employee an overview of the interview procedure. Take a

few minutes to recap the essential functions of the job, and to explain

why this analysis is important.

Let the employee know that you may need a few minutes every now

and then to jot down their comments or your thoughts -- explain that

your notes will be helpful later as you prepare the description of the

job.

QUESTIONNAIRE:

The job holder is given a questionnaire aimed at eliciting relevant job

information. This method is economical and the data collected can be

quantified. However, designing the questionnaire is not an easy task.

The Position Analysis Questionnaire (PAQ) developed by

McCormick, Jeanneret, and Mecham (1972) is a structured job

analysis instrument to measure job characteristics and relate them tohuman characteristics.

DIARIES

Jobholders themselves may be asked to keep a diary of their work

activities during an entire work cycle. This record an provide the job

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The new view of job analysis that is really needed is one that combines

the emphasis of the Strategic View of job analysis with the methodologic

rigor that has long characterized traditional methods.

Core competency models are the easiest to administer since there is only one

model for all associates to understand. They also can effectively serve to

align human resource systems with the change process. Core competency

models also support culture change by communicating what behaviors are

required for change and can serve as criteria for measuring the progress of

behavior change in the existing workforce.

A competency approach provides greater clarity for the selector and

candidate about what is required. For example, a person specification that

states that 'flexibility' is required may mean different things to different

people, whereas the use of a competency such as 'willingness to performtasks outside the normal range of duties' provides greater clarity about what

is required.

JA: ADDING VALUE TO THE ORGANIZATION

The JA effort must add value to the organization. Job analysis methods that

can serve servral purposes can be used to manage many different jobs, are

standardized such that comparisons across jobs are made easy, have more

value adding potential that JA systems of a more restricted nature. Also JA

methodsthat require little training of those who use them, and those that canbe completed easy alsohave a greater potential for adding value due to their

lower cost in time and effort.

Competency-Based Job Analysis

Competencies Demonstrable characteristics of a person that enable performance of a job.

Competency-based job analysis Describing a job in terms of the measurable, observable, behavioral

competencies (knowledge, skills, and/or behaviors) an employee must

exhibit to do a job well.

Why Use Competency Analysis?

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To support HPWS Traditional job descriptions (with their lists of specific duties) may actually

backfire if a high-performance work system is the goal.

Maintain a strategic focus Describing the job in terms of the skills, knowledge, and competencies the

worker needs is more strategic.

Measuring performance Measurable skills, knowledge, and competencies are the heart of any

company's performance management process.

Its role as a strategic lever

The way a company competes can impact profoundly on the way tasks are

organized and the way the tasks are designed could provide the company

with a competitive advantage.

The ultimate value of any job analysis program lies in its ability to help

employees perform their strategic roles in the organization more effectively

and efficiently. Thus it is critical for an organization to have a clear

understanding of how job analysis are expected to increase employee

productivity.

What is the role of the consultant?

1. Uses experience and skills to provide you with recommendations and

advise. The implementation of the recommendations may be

performed by a consultant but is more often better performed by the

company staff.

2. Gathers information for analysis.

3. Consultants must use their detachment from the organization as a

source for objectivity in their analysis.4. Works with managers to develop solutions.

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RECRUITMENT

According to Higgins, recruitment is a series of activities intended to attract

a qualified pool of job applicants. Recruitment follows HRP. Without

accurate planning the wrong type and number of persons may be

employment. Recruitment also goes hand in hand with selection. Selection

is the process by which candidates are evaluated.

Recruitment Process

After the vacancy has occur, the first step in the recruitment process is to

CAREFULLY EXAMINE THE JOB to determine the TDRs and SKAs of

the candidate. This information is obtained from the job analysis process..

Having established that there is a necessity for recruitment, the next stage is

TO ATTRACT THE CANDIDATES. The advertisement may be placed

internally or externally. Persons who are already working in the

organization constitute the internal sources. Whenever any vacancy arises,

someone from within the organization is upgraded, transferred, promoted or

even demoted. Filling positions internally have several advantages:

Advantages of Internal Recruitment

INRCREASES MORALE:

First, internal recruitment may lead to increased morale for

employees; the organization is perceived to reward good performance

or loyalty.

Often, one promotion leads to another vacant position and this chain

effect contributes further to increased morale.

Another advantage to the firm is that Human Resource data is

immediately available for any employee recruited internally.

Further, the employee's work habits are known and previous

performance appraisals are on record.

Maximises job security for present employees.

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Techniques (negative and positive)

Process of HRP and RecruitingStrengths and weaknesses of eachstepCSME context how to minimize

costs

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COST REDUCTION:

Similarly, an internal recruit will be familiar with the firm. This

employee will be familiar with the firm's products, clients,

organizational policies, and corporate culture. Therefore, the firm

might be able to save money insofar as orientation sessions for such

an employee may not be necessary.

Training and socialization costs are also reduced.

Disadvantages:

May build resentment among staff and this resentment may be demonstrated

through less than satisfactory work output

Discourages entry for talented and innovative people

Organization may be forced to select from a limited pool thereby sacrificing

quality.

EXTERNAL RECRUITMENT

Advantages

The most obvious advantage of external recruitment is the availability of a

greater pool of applicants.

External recruits also bring new ideas and external contacts to the firm

hiring them.

Disadvantages

Higgins has suggested a number of techniques which go beyond thetraditional methods of recruiting. These include resume databases, tele-

recruiting, information seminars and also internet recruiting.

One approach to Internet recruitment is to permit people to generate a

resume while online.

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Advantages of internet recruiting include access to more people and a

broader selection of applicants; the ability to target the type of people

needed; access to people with a technical background who know computers;

convenience; quicker response and turnaround; ease of use.

Disadvantages include an increased volume of applicants may also become

a problem if Internet recruiting is used. An organization must ensure that it

uses an adequate tracking mechanism to deal with this increased volume. A

further disadvantage is that not everyone has access to or uses the Internet.

EVALUATION OF APPLICANTS

Once the job has been advertised, line managers get involved and the

selection process begins.

Selection is the process of gathering information about applicants for a

position and then using that information to choose the most appropriate

applicant. The selection process can lead to improved productivity, guard

against law suits and achieve legal compliance and reduce training costs.

A targeted selection process may be employed which is based on the

following principles:

Identifying critical elements for the position: The interviewer should be

guided

by a list of skills, special qualities, knowledge or behavior for the position

he/she is

interviewing for. This list is developed by identifying those aspects of on-

the-job

performance that are most critical to getting the job done (job description).

Organize your interview into a system: Hiring decisions are based on the

evaluation of applicant information accumulated from a variety of sources.

METHODS OF SELECTION

Application Blank which is used to determine whether or not the candidates

meet the minimum requirements; interviews which should be well

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structured; background investigations to probe applicants background and

tests of mental abilities, personality and intelligence.

The HR Manager is responsible for making the job offer after the selection

process has been completed.

Weaknesses of the Selection Process

Its role as a strategic lever

PLACEMENT

After selecting a candidate, he should be placed on a suitable job. Placement

involves assignment a specific rank and responsibility to an employee.

Proper placement ensures that the employee is able to show good results onthe job, get along with staff and avoid mistakes and accidents.

Weaknesses of the Recruitment Process

Logically, firms would seek to recruit in a manner that guarantees the

greatest number of qualified applicants. However, there are often constraints

on the recruitment process which prohibit some methods. Some of these

constraints are:

Organizational Policies

An example of an organizational policy might be a "promote-from-within"

policy. Frequently, such policies are encountered in unionized firms where

the collective agreement stipulates that job openings must be posted

internally prior to seeking applicants from outside the organization.

Recruiter Habits

Recruiter habits may also constitute a recruitment constraint. For example,past successes may lead to habits or preferred tendencies in recruitment

Environmental Conditions

Organizations are generally subject to changes in their environment. This

includes changes in the labor market. The rate of unemployment in an area

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can have a profound influence on recruitment. High unemployment, or a

surplus of labor supply, may result in a larger number of skilled applicants

for a particular job than would be the case in times of full employment.

Changes in legislation governing the employment of certain classes of

employees can also constrain recruitment activities. If, for example, the

degree of qualification necessary to do a particular job is changed by way of

legislation, then the firm's recruitment activities may also need to change.

Its role as a Strategic lever

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PERFORMANCE MANAGEMENT SYSTEM

Definitions of Performance Management

Performance appraisal may be defined as a formal, structured system ofmeasuring and evaluating an employees job related behaviours and

outcomes to discover how and why the employees is presently performing

and how the employee can perform more effectively in the future.

Purpose of performance management System

The main purpose is to make sure that the performance management system

are to link the workers activities with the firms strategic goals, to furnish

valid and useful information for making administrative decisions, and to

provide the workers with useful developmental feedback.

Strategic Purpose

One of the ways in which strategies are implemented is by management

defining the desired results, behaviours and employee characteristics

necessary for carrying out strategy, then developing measurement and

feedback mechanisms which will show how effectively results are being

achieved and what to do to produce results.

Administrative Purpose:Performance Management information can be used to make administrative

decisions such as salary administration, promotions, terminations etc.

Developmental Purpose:

In instances where employees are not performing up to standard,

performance management also seeks to improve their performance. The

feedback from the performance evaluation process indicates or identifies the

areas of strengths and weaknesses in the employee performance.

COMMENT ELEMENTS OF Performance Management SYSTEMS

1.Define performance

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Avoiding pitfalls

How PM system worksContents on training session on

PA system

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It is desirable to carefully define performance so that it supports the

organizations strategic goals. The setting of clear goals for individual

employees is a critical component of performance management.

2. Measure performance

Measuring performance does not need to be narrowly conceived but can

bring together multiple types of performance measured in various ways; the

key is to measure often and use the information to correct performance

where

necessary.

3. Give feedback and coachingIn order to improve performance, employees need information; about their

performance along with guidance as to how to reach the next level of results.

Without frequent feedback employees are unlikely to know that their

behaviour is out of synchronization with relevant organizational goals, or

what to do about it.PERFORMANCE MANAGEMENT PROCESS:

1. Defining the Job

The supervisor must ensure that there is a common understanding between

himself or herself and the employee about the duties to be carried out and

the

set standards to follow;

2. Appraising PerformanceThis involves comparing the employees actual performance against set

standards and involves the use of some type of rating form.

3. Feedback SessionsThese feedback sessions refer to the situation in which the supervisor

discusses

with the employee his or her performance and progress. Plans are also

made for developmental requirements to be met;

METHODS OF PERFORMANCE APPRAISAL:

Past-oriented methods of appraising job performance include:

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Graphic Rating Scale Method:

This is a scale that lists a number of traits and range of performances

reached. The employee is then rated by identifying the score that best

describes his level of performance for each trait. ADV: Simple to use; low

cost; DIS: raters biases likely to influence evaluation

Critical Incident Method:

This involves keeping a log of desirable or undesirable examples or

incidents

of an employees work-related behaviours. ADV: provides hard and specific

facts which form the basis for a review at varying intervals; ensures

consistency in rating process; provides solid examples of what employee can

do to eliminate performance deficiencies; useful for identifying specificexamples of good and poor performances; DIS: cannot be used by itself for

comparing workers; not good for making salary decisions.

BARS: Behaviorally anchored rated skills

Persons with knowledge of the job to be appraised are asked to describe

specific illustrations of effective performance behaviour.

Responses are then collated and returned to a different group to agree

examples of effectiveness/ineffectiveness in the performance.

Those examples which are consistently rated at the same point on the scale

can then act as anchors and provide behavioral examples for each point on

the scale.

ADV:

It is a more accurate gauge of performance, as it is done by people who

know the job and its requirements better than others.

Provides feedback to the appraisees

Future oriented methods include:

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Management by Objectives

With this system the manager agrees with members of staff on set objectives

which are reviewed periodically. The appraisal is then based on the extent

to which these stated objectives have been achieved.

ADV: direct results can be observed, whereas the traits and attributes of

employees (which may or may not contribute to performance) must be

guessed at or inferred;

MBO advocates claim that the performance of employees cannot be broken

up into so many constituent parts - as one might take apart an engine to

study it.

DISADV: they can lead to unrealistic expectations about what can andcannot be reasonably accomplished;

It has become very apparent that the modern organization must be flexible to

survive. Objectives, by their very nature, tend to impose a certain rigidity.

360 Degree Feedback

This technique is understood as systematic collection of performance data on

an individual/group derived from a number of stakeholders, team members,

customers, peers.

It provides a broader perspective about an employees performance.

It facilitates greater self-development of the employees

It enables an employee to compare his/her perceptions about self with

perceptions of others

It provides formalized communication links between an employee and his or

her customers

It is effective in identifying and measuring interpersonal skills, customer

satisfaction and team-building skills.

DIS:

The Appraisal Interview

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The supervisor and subordinate review the appraisal and make plans to

remedy deficiencies and reinforce strengths.

Tell and Sell Interview: This includes the ability to persuade an employee to

change in a prescribed manner. It may also require skillful use of

motivational incentives.

Tell and Listen Interview:

The ability to communicate strong and weak points of the employees

performance is needed during the first part of the interview.

The second part would requiring the appraiser trying to explore the

employees feelings about the appraisal interview. Supervisor is required to

listen to disagreements and cope with defensive behaviour.

Problem solving interview:

This interview seeks to stimulate growth and development in the employee

when problems, needs, dissatisfactions experienced on the job are discussed.

WHO SHOULD DO THE APPRAISAL?

Performance appraisal should be done by the immediate supervisor.

Peer Appraisal: this is effective in predicting future management success.

DIS: peer may collaborate to rate each other highly

Rating Committee: composite ratings tend to be more reliable, fair and

valid; cancels out the bias and halo effect

Self Rating System: employees usually rate themselves higher than are

rated by their supervisors or their peers.

PROBLEMS IN PERFORMANCE APPRAISAL:

Completing a performance appraisal is one of the most difficult tasks

assigned to managers. The following points summarize a few of the common

errors made by managers as they conduct evaluations.

1. The Halo Effect

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Allowing one highly favorable (or unfavorable) employee behavior or

characteristic to affect judgment about the entire appraisal ignores other

employee strengths and weaknesses.

2. Bias or Prejudice

We all have our biases. However, allowing personal biases or prejudices toinfluence the appraisal process can make evaluations unfair and inconsistent.

Know your biases.

3. Not Knowing Employees

Unfortunately, many supervisors don't really know their employees or the

quality of their work. Such evaluations aren't credible.

4. Overemphasis on Isolated Events

A particularly recent or significant event may skew overall judgment of an

employee. Take informal notes about employees (both good and bad things)throughout the year to ensure your evaluation is based on the entire appraisal

period - not just what happened last week.

5. Lenient or Inflated Appraisals

It's difficult for most managers to give employees poor ratings. However,

not doing it simply avoids the problem and doesn't give the employee the

opportunity to correct it. It's also awfully difficult to later discipline or

terminate an employee whose appraisals have always been good. It opens up

risks of discrimination charges.

6. Appraisal of Potential Worth

When managing a new or inexperienced employee make sure you rate her

on actual job performance, not on what she might become. Evaluate the

employee based on current results and action. You can use comments to

address her potential.

7. Postponing or Skipping the Appraisal

Delays create the wrong impression. Employees begin to perceive that

neither they nor the appraisals are important.

8. Poor Preparation

"Seat of the pants" meetings rarely produce effective results. It quickly

becomes apparent that the appraiser is not well prepared. The employee may

assume the manager does not know what is going on or that she simply

doesn't care enough to prepare.

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9. Using the Evaluation as Corrective Action

The appraisal meeting should not be a disciplinary session. Inappropriate

behavior must be dealt with when first observed. Discipline and discussion

of performance/goals don't work well together. Corrective action should

have been addressed earlier. The evaluation is a time to discuss strengths and

weaknesses, perhaps assessing how an employee has done in correcting past

behavior. However, it isn't the place to raise new disciplinary actions.

10. Overemphasizing Good Performance

Praise and positive reinforcement are terrific. However, compliments

quickly become meaningless if they aren't specific and substantive. They can

also give an employee the false impression that you are completely pleased

with everything he does. Be honest and direct.

11. Not Following Through

Most of the time and effort spent in planning for and conducting an effective

interview is lost if you don't follow through with the actions/plans discussed

in the evaluation. Performance management should be a daily (not annual)

activity.

12. Avoiding the Tough Issues

Employee problems rarely correct themselves. Nearly everyone is

uncomfortable raising sensitive issues or criticizing others. However, unless

the tough issues are addressed they inevitably get worse, the manager loses

credibility, and the employee may not ever know there is a problem.

13. Evaluating Attitude

While we all are forced to deal with employees' attitudes (whatever that

means!), attitudes are basically impossible to evaluate and even harder to

change. Focus on results and objective, observable actions. They're easier to

complete and much more readily justified.

14. Accepting Excuses

There may be legitimate reasons why an employee has been unable to

complete assigned goals. However, don't immediately accept excuses forpoor performance. Often they're simply not valid. If they are appropriate

then a solution and action plan should be developed to avoid such problems

in the future.

15. Ignoring Employee Feedback

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Asking employees for input only to ignore their comments can be very

damaging. It makes evaluation meetings much less effective, and

communicates to employees that while their ideas may be asked for they're

not listened to or acted upon.

Designing A Strategic Performance Appraisal System

Traditionally, performance evaluations have been effective tools to assist

organizations in making pay decisions and to support various employment

actions. Today, an increasing number of companies use appraisals

strategically to support company goals and values, better focus employee

efforts, and align employee performance with the company mission.

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DESIGN AND DEVELOP A PERFORMANCE MANAGEMENT

SYSTEM EXPLAINING IN DETAIL HOW IT WORKS.

DefinitionTraditionally, the performance management system was used to measure and

evaluate how well employees perform their activities and how they can

perform effectively in the future.

Strategic Purpose

Today, due to the complex and challenging nature of the working

environment, performance management systems is the integration of

performance appraisal systems with broader HR systems as a means of

aligning employee behaviors with organizational goals. Thus it can be seenthat Performance Management systems serve a strategic function by

focusing employee efforts on the type of behaviour required to successfully

achieve organizational goals. For e.g. if the overall strategy of the firm is to

be a low-cost provider, the PA provides the means of knowing whether

employees are engaging in activities to reduce cost. It also ensures that

consistency between organizational values and job behavior through the

reinforcement of values and culture.

Equity

In order to establish a successful appraisal system careful attention needs to

be given to a number of important matters concerning its introduction and

implementation. A good measure of success is how those appraised and

compensated perceive the accuracy and fairness of the program. When

workers perceive an inequity, they might seek to decrease the quantity of

work they do, incur high level of absenteeism or resign from the job due to

dissatisfaction and demotivation.

INTRODUCTION:

Commitment and Support from Top Management

Appraisal systems should not be introduced without successfully engaging

all those directly involved in implementing the system. Top management

should be seen to be fully committed to the concept of appraisal. They

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should ensure full consultation with trade unions and staff representatives,

members of staff and managers. In so doing, this will help build

commitment to the appraisal scheme itself and provide resistance to change.

Purpose/Use of Appraisal

The purpose of the appraisal system should also be determined. There are

three broad purposes to which the performance appraisal system can be

employed.

As a developmental tool, the performance appraisal system can be used to

improve performance by pointing out the strengths and weaknesses of the

employee and by helping employees to identify more effective ways to

accomplish important tasks, it can also help the organization to determine

training needs to correct any skills and/or knowledge deficiencies and

provides the supervisors and employees with an opportunity to discussemployees long-term career plans and goals.

As an administrative tool, the assessment can be used to link rewards to

performance and to evaluate the effectiveness of HR policies and practices.

[Strategic Focus]

Training of Raters

Adequate provision will also need to be made for the proper training of

appraisers. Appraisers must be sufficiently skilled to ensure that appraisal

activities benefit the employees rather than simply meet administrative

needs. They must also be taught how to reduce rating errors such as the halo

effect, contrast effect, leniency, and central tendency, how to improve

observation skills and to communicate appraisal information in an objective,

constructive manner with rates.

Contrast effect - The tendency of raters to evaluate personsrelative to each other, rather than on the basis of individual

performance evaluation criteria. To avoid contrast effect, concentrate

on how the employees performance compares to the behaviors listed

in the skill guide.

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Halo Effect - The tendency to rate a person who is exceptionally

strong in one area high in all other areas. One factor has undue

influence on the other ratings.

Leniency Most employees receive more positive ratings than theydeserve. This makes it difficult to later discipline or terminate an

employee and opens up risks of discrimination charges

Central Tendency: This occurs when all employees are being

rated as average. It distorts the evaluation process and makes it

less useful for promotion, salary or counseling purposes. The

rater should make sure that he/she gets the information they

need to make confident rating decisions.

Defining Role and Responsibilities

The human resources department is responsible for design the performance

appraisal system, establish & monitor a reporting system, train managers in

how to conduct appraisals and safeguard performance appraisal records

The supervisor is responsible for evaluating the performance of employees,

completing the appraisal documents and forms, and reviewing appraisals

with employees

IMPLEMENTATION

Step 1:

The first step involved in the performance appraisal process is to

ESTABLISH GOALS AND STANDARDS which are required by the

jobholder. These goals may be derived from the strategic objectives of the

organization and related job description. As such, the job analysis is the

starting point in the process and this would help to ensure that all relevant

aspects of the job are covered. The performance goals should be specific,measurable, attainable, realistic and a time should be determined for

achieving the objectives.

Once the goals have been established, the employee needs to be informed of

what is expected of him in order to perform the job required. Also, the

supervisor needs to ensure that there is a common understanding between

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himself and employee on the goals of the appraisal process. Supervisors

may want to further discuss and refine the performance goals with the

employee.

Step 2:

The next step involves the MEASURING OF ACTUAL PERFORMANCE.

A good appraisal system should measure important components of the job,

be free from contaminating influences and not be deficient. It should be

reliable and avoid rating errors. It must be fair to minorities, women and

other protected groups. Objective measures which are typically results-

based measures of physical output should be used and subjective measures

which are used to assess traits, behaviours or results should not constitute a

significant aspect of the performance evaluation criteria.

Step 3:The ACTUAL RESULTS ARE THEN COMPARED AGAINST THE

STANDARDS set to determine any deviations. Performance should be

compared against standards of acceptable performance for the position, and

not to a co-workers on-the-job performance. A system that compares

employees to each other may undermine teamwork, communication, and

morale.

While the trait based system is inexpensive to develop and easy to

use, it has a high potential for rating errors and is not very useful for

feedback, counseling and development.

BEHAVIORAL METHODS: Focus on specific performance

dimensions and are useful for providing feedback. They are also fair

for reward and promotion decisions. However they can be

timeconsuming and costly to develop and use. There is also some

potential for rating error.

RESULTS METHODS have less subjectivity bias and serve to link

individual performance to organization objectives. They are alsogood for reward and promotion decisions. However, these too are time

consuming to develop and use and may use deficient or contaminated

criteria.

Step 4:

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The final stage in the appraisal process is the FEEDBACK SESSION. Here,

the supervisor and employee engage in discussions to discuss the

employees performance and progress.

Rater familiar with the ratees work

When giving performance feedback to subordinates, supervisors must ensure

that the feedback is credible, specific, constructive and accompanied by

concrete examples of poor or good performance. Credibility is enhanced

when the evaluator is seen as being knowledgeable about the subordinates

job, has had the opportunity to observe the behaviour of the subordinate and

has taken time to prepare carefully for the assessment interview.

Two way communication is allowed in the appraisal interview

They should also allow an appropriate degree of participation and ensure

that goals for future performance are set. Providing a format of dialoguebetween the supervisor and the employee can have the effect of increasing

trust.

The Appraisal Interview

The annual performance assessment interview is a valuable opportunity for

the supervisor and subordinate to communicate about past performance,

current concerns, and goals for the future. Three main approaches to thefeedback sessions are:

Telling and Selling: The supervisor tells the employee how good/bad

the employee performance has been and then attempts to persuade the

employee to accept this judgment. This approach is direct and one-

sided, and may lead to defensiveness and resentment. When this

happens, the supervisor must recognize that defensive behaviour is

normal. The supervisor should not attack the person. Examples of

behaviours exhibited in the workplace could be used rather than

attacking a personality trait.

Telling and Listening: The supervisor tells the employee what hasbeen right or wrong and gives the employee a chance to react. The

supervisor is required to listen to disagreements and cope with

defensive behaviour.

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Problem-Solving: Employees evaluate their own performance and set

their own goals for future performance. The supervisor is primarily a

helper and a colleague rather than a judge.

The formal interview should be a culmination of the ongoing continual

process of informal performance feedback. Nothing should come as a

surprise to the employee.

As the main purpose of appraisals is to help staff improve their performance,

AN APPEALS PROCEDURE should only be used in exceptional

circumstances. However, in order to help establish the credibility of the

system and to maintain goodwill, it is necessary to establish a formal

procedure which is clearly understood by all members of staff.

MONITORING AND FOLLOW-UP ACTIONIt should be noted that the system should be kept under continual review

and, where necessary, modified to meet changing environmental influences

or the needs of the organization. The system should be supported by follow-

up actions such as seeing that the changes in duties and responsibilities

actually take place.

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360-degree Performance Appraisal: Evaluating Employees From All

Angles

Traditional performance appraisals, as discussed above, can be both

subjective and simplistic. At times, they can also be deemed to be

"political". In an attempt to improve this methodology, some companies

have turned to 360-degree appraisals. 360 appraisals pool feedback from a

department's internal and external customers to ensure a broader, more

accurate perspective of an employee's performance.

360-degree performance appraisal is an attempt to answer the question:

"How can a supervisor evaluate an employee he or she sees only a fewhours each week?"

Using internal and external clients

360-degree performance appraisals offer an alternative by which

organizations may gain more useful performance information about

employees. Because all clients/customers an employee comes into contact

with can conceivably have input into the performance appraisal, this

methodology can also makes them more accountable to their customers.

Using a courtroom metaphor, one could say that, rather than having a single

person play judge, a 360-degree appraisal acts more like a jury. People who

actually deal with the employee each day have an opportunity to create a

pool of information from which the appraisal is written. Internal clients may

include supervisors, subordinates, co-workers, and representatives from

other departments. External customers may include clients, suppliers,

consultants and customers.

Perceived fairness

Given the use of a wide variety of sources for information in the 360-

appraisal process, this method provides a broader view of the employee's

performance. Frequently, the employee on whom the appraisal is being done

(the ratee) will feel that the process is more fair.

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Validity

Very often, an employee's peers know their behaviors best. Consequently,

employees cannot hide as easily in 360-degree appraisals.

Employee development

360-degree appraisal enables an employee to compare his or her own

perceptions of their work performance with the perception of others. As

such, the method facilitates employee self-development. Feedback from

one's peers is more likely to lead to changed behaviors.

Accountability to customers

A 360-degree appraisal process provides a formalized communication link

between the employee being evaluated and their customers. These people

now have feedback into the employee's performance rating. As such, the

process is likely to make the employee more accountable to his or her

various internal and external customers. Furthermore, organizations can also

use this feedback to create more customer-oriented goals for the following

year.

The raters: how many and who?

One issue employers must solve in implementing a 360-degree appraisalprogram is determining how many raters should be involved. Next, the

organization must decide who should do the rating. Generally speaking, less

than five raters limits the perspective while more than ten raters is likely to

make the appraisal system complex and time consuming. A firm would be

well advised to develop a workable definition of what constitutes a peer, an

internal customer, an external customer, a supervisor, etc. For example, to be

useful, the customer ought to be one who has significant interactions with

the ratee.

Some organizations permit the ratee to develop a list of key internal andexternal customers that he or she interacts with. The ratee then recommends

five to ten of these individuals to serve as raters. In this process, the

supervisor still retains the ultimate responsibility for the appraisal and

therefore ensures that appropriate raters are selected. The ratee is thus

prevented from stacking the deck with supportive customers.

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Another option has the raters selected at random from the ratee's team by a

computer-generated system. Those selected are then notified by E-mail to

participate in the appraisal.

Limitations on the use of external clients

An organization contemplating the use of the 360-degree process must keep

in mind that reviewing that organization's employees' performance is not the

customer's business. To ensure the customers' cooperation, the process

should be a mutually beneficial process.

Furthermore, the various external customers would ideally evaluate the ratee

only on the behaviors or work incidents that they have directly observed.

This, of course, also holds for internal raters.

Summarizing the data

Once all raters have supplied their appraisals, the employee's supervisor is

generally responsible for summarizing the data and determining the final

performance rating.

After summarizing the data, the supervisor conducts the formal appraisal

interview with the ratee.

Another variation of the summary process makes the ratee responsible forsummarizing the feedback data from the raters. The ratee then submits a

summary analysis to his or her supervisor. The ratee and the supervisor then

meet to determine the ratee's final performance rating and development plan.

Rater confidentiality

Organizations must decide whether the feedback from the various raters

should be kept anonymous or be identified to the employee. Sometimes

raters give fuzzy feedback because of the fear that the feedback might come

back to them.

One rule rule might be that no rater can give negative feedback in the

appraisal unless that rater has previously given the feedback directly to the

ratee. Most organizations should start with a policy of confidentiality until

sufficient understanding, maturity and organizational trust is achieved

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MANAGING THE CHANGE PROCESS:

HRMs role in managing the change process associated with

organizational restructuring exercises.

Transformational Leadership

Preparing employees for change

Anticipating and managing resistance to change

managing the transition

Strategically managing downsizing

For any new HR practices to be implemented successfully, they have to be

first accepted by internal customers. In introducing a new HR practice to the

sytem, there are four change related problems which must be considered:

Resistance to Change

As organizations have become less stable and predictable, strong bonds of

trust are likely to be replacing bureaucratic rules in defining expectations

and relationships. Managers who are not trusted are not likely to be effective

leaders.

Transformational Leadership:

C. Transformational Leadership

1. Most of the leadership theories presented in the previous

chaptersfor instance, the Ohio State studies, Fiedlers

model, path-goal theory, and the leader participation model

have concerned transactional leaders.

2. These kinds of leaders guide or motivate their followers in

the direction of established goals by clarifying role and task

requirements.

3. Transformational leaders inspire followers to transcend their

own self-interests for the good of the organization.

4. They change followers awareness of issues by helping them

to look at old problems in new ways; and they are able to

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excite, arouse, and inspire followers to put out extra effort to

achieve group goals.

5. Transformational leadership is built on top oftransactionalleadershipit produces levels of follower effort and

performance that go beyond what would occur with atransactional approach alone.

6. Evidence indicates that transformational leadership is more

strongly correlated with lower turnover rates, higher

productivity, and higher employee satisfaction.

LIST AND DISCUSS THE COMMON ERRORS THAT THWART

CHANGE EFFORTS IN ORGANIZATIONS. HOW MIGHT THESE

ERRORS BE OVERCOM?

According to John Kotter of Harvard Business School the most common

errors that lead to the failure of change efforts in organizations are:

Allowing too much complacency According to Kotter,organizational change often fail to achieve its objectives when

complacency levels are high. Some of the sources of complacency are

lack of sufficient feedback from external sources or having a low

overall performance standards.

Failing to create a sufficiently powerful guiding coalition the

coalition of managers and others guiding the change is always

powerful in terms of their formal titles, reputations and relationships,

and the capacity for leadership.

Underestimating the power of the vision Undercommunicating the vision

Permitting obstacles to block the new vision

Failing to create short-term wins

Declaring victory too soon

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Neglecting to anchor changes firmly in the corporate culture

Therefore to implement a major change in an organization, the following

steps must be taken.

Firstly, there is a need to create a sense of urgency among employees that

change is necessary. Urgency helps motivate personnel to overcome

complacency, fear, anger, or pessimism, which result in resistance.

Secondly, there is a need to create a guiding coalition. Successful change

needs effective leadership to provide the vision and to manage the process.

The guiding team requires individuals with the right attitude, skills, and

power.

Thirdly, steps should be taken to develop a vision to help direct the change

effort and also develop a strategy for achieving that vision. The guiding

team is empowered to create a compelling picture of the organization's

future. The successful vision will be bold, inspirational, clear, and credible.

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In addition, constant interaction is necessary with all stakeholders for change

to be successful. Thus, there is a need to communicate the change vision.

With a vision in place, the guiding team has a powerful tool for obtaining

the buy-in of management and the workforce. Persuasive communication

requires leaders to deliver the message personally, clearly, and withconfidence.

The next step is to get rid of obstacles that undermine the change vision.

Barriers in the mind are those self-fulfilling prophecies people tell

themselves about large-scale change being impossible. Possible solutions to

remove barriers include communicating small success stories and bringing

in people from outside the organization to recount corporate victories in

similar circumstances.

Also, create or find short-term wins and then sincerely communicate them

throughout the organization. The objective is to have successes that show

clear progress, which is both evident and meaningful.

Do not declare victory until the new approaches are sink deeply into the

work culture. It is essential for change leaders to maintain the momentum

created by the quick wins, otherwise urgency fades. With early successes

under the belt, change participants can directly address the more difficult

political and organizational issues. People need to feel motivated by thesuccesses. They should also be empowered to take further risks without

feeling that the cost of failure would be overwhelming.

Often, after initial alterations are made in the organization, managers and

employees have a tendency to slip back into old routines. Sustained changes

in work processes require changes in culture and these changes take time.

By promoting individuals who reflect the new norms, management builds a

leadership-base around the new culture and reinforces the type of traits they

desire in their managers. Organizations can also use hiring and the new-employee orientation process as a method for emphasizing the new

expectations into the culture

Kotter sees the problem of one of leading change. He makes the distinction

between management and leadership by stating that management is a set of

processes that can keep a complicated system of people and technology

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running smoothly. On the other hand, leadership is a set of processes that

creates organizations in the first place, or adapts them to significantly

changing circumstances.

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ERRORS, HOW TO OVERCOME ERRORS; ACTION TO TAKE

Kotter identified eight common errors that organizations make in their effort

to bring about change.

One such error is allowing too much complacency such as not receiving

sufficient feedback from external sources or setting too low an overall

performance standard. In order to overcome complacency he recommended

that the organization create a sense of urgency among employees that change

is necessary. This involves discussing potential crises and identifying major

opportunities that would come about as a result of the change.

Another error made is failure to create a sufficiently powerful guiding

coalition to lead the change process. The guiding coalition requires

individuals that are powerful in their relationships, roles, and capacity tolead. The managers job is to encourage the group to work as a team.

Thirdly, organizations underestimate the power of a vision. The guiding

coalition is responsible for shaping and sharing the vision and developing

strategies for achieving the vision. The vision helps to inspire action andthus must be bold, clear and inspirational. Kotter felt that plans and

programs serve to complement, not substitute, the vision.

Fourthly, theyundercommunicate the vision

. This might be done by

holding too few meetings or sending too few memos. The message of the

vision should be communicated to stakeholders and employees in a personal,

confident manner.

Another failure is permitting obstacles such as the perceptions, current

organization structure or lack of training of employees to block the

vision. This might be overcome by making changes to technology, productsor systems that might undermine the vision or even removing personnel who

do not ascribe to the vision.

The next error is failing to create short term wins. The objective should be

to highlight and reward progress. Managers should establish goals and

when these are achieved, reward employees via promotion, salary increaseetc.

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Kotter warned against declaring victory too soon. The change process

takes time. Victories should not be declared until the change process is part

of the organizations culture.

Finally, organizations neglect to anchor changes firmly in the corporate

culture. Management should make a conscious effort to show people how

specific behaviours have helped to improve performance. One way in which

this can be done is to emphasize expectations of the new culture during the

hiring and orientation processes.

For Kotter successful transformation is 70 90% leadership and 10 30%

management.

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ORGANISATIONAL DEVELOPMENT

Organization development seeks to help organizations cope with forces for

change in their environments and to improve their internal problem-solving

abilities.

Teams and teamwork

are part of the foundation of organization development

French and Bell described the seven phases of a typical OD Programme as

follows:

Entry The organization development process begins by forming arelationship between the client and the consultant. Consultants need to

determine the clients readiness for change, including whether people are

motivated to participate in the process, are open to meaningful change, and

possess the abilities to complete the process.

Contract A contract is developed by establishing mutual expectations and

agreements on expenditures.

Diagnosis - Here we collect data in order to find the opportunities and problems in the organization. This stage establishes the appropriate

direction for the change effort. Data collection may occur through

interviews, survey questionnaires, direct observation, analysis of documents.

Feedback - This two-way process serves to tell those what was found, based

on an analysis of the data. This provides an opportunity for the

organization's people to become involved in the change process, to learn

about how different parts of the organization affect each other, and to

participate in selecting appropriate change.

Planning Change This step is aimed at addressing the issues uncovered in

the diagnosis. An implementation plan may be developed that is based on

the assessment data.

Intervention This phase involves implementing actions that are planned.

Here, the actual change process is carried out.

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Evaluation the interventions are evaluated and if necessary modifications

are made.

HUMAN RESOURCES PLANNING

THE PLANNING STAGE: Tool & Techniques

Week 3 Definitions of HR Planning

The HR Planning Model

- Evaluating the organizations existing Strategic Objectives

- Information Gathering

- Demand & Supply Forecasting

- The Matching Process

- Developing HR Plans & Strategies for Managing the Over

Supply or Under Supply of Human Resources

- Evaluation

Its role as a Strategic Lever

HRP is the process by which organizations anticipant further staffing needs

and plan programmes to ensure that the correct number and type of

employees are available when needed.

Traditionally, the prime concern with HRP relates to balancing the demand

for and the supply of human resources. However, in the current market

place there is a strong focus on work teams instead of individuals, the moveaway from job descriptions, less supervision and increased worker

responsibility. As a result, HRP must be linked to the development of the

organization as a whole, and should be related to corporate objectives and to

an organization structure capable of achieving these objectives. The HR

practitioner must be an astute expert in the field in order to maintain the

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companys strengths at the full capacity needed at the particular point in

time.

IMPORTANCE:

Foresight is necessary to ensure that appropriately qualified staff will be

available to implement an organizations future plans. The use of HRP can

assist organizations to foresee changes and identify trends in staff resources,

and to adopt personnel policies which help to avoid major problems.

Strategic basis for human resource decisions. HRP helps the organization

as a whole forecast future conditions and develops objectives for the human

resource programs to meet the organizations needs. It allows managers to

anticipate change as well as provide strategic methods for addressing present

and anticipated workforce issues. Changes in skills, competencies, and keypositions can be anticipated as a result of retirements and natural attrition.

Links expenditures to organizations long-term goals and objectives.

Human resources are expensive. The higher the percentage of the budget

comprised of human resources-related costs, the more important is the need

to plan. The cost of employee turnover, replacement, retraining, and

retention further increases these costs. HRP can reduce these costs by

ensuring more efficient and effective recruitment, training, and retention. It

also provides other benefits such as background information for position

management and succession planning; better identification of training and

development needs for the long-term; linkage of training with performance

goals; more cost effective programs; more useful information on workforce

diversity.

Links recruitment, development and training decisions to

organizational goals. HRP provides a clear rationale for linking

expenditures for recruitment, training, employment development, retention,

and other human resource programs. Improvements in skills, personnel, andprocedures will assist organizations in achieving their goals.

Address changes in program direction that impacts the type of work being

performed and/or how the work is being performed. HRP will help to

identify work that can be contracted to the private sector (outsourcing) and

opportunities to delayer management. Lastly HRP becomes especially

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critical when organizations consider mergers, relocation of plants,

downsizing or the closing of operating facilities which is characteristics of

todays working environment. As such, HRP is instrumental in helping

management determine how it should move from its current manpower

position to its desired position in order to carry out the integrated plan of the

organization.

During downsizing organizations must not only decide which employees

will be let go but also which employees to have and retain. Thus, HRP

serves as a catalyst for formulating and implementing new HRM programs

and policies.

HRP could lead to greater employee satisfaction. Through the use of a good

HRP system employees have a better chance to utilize their talents and to

share in training and development experiences.

HRP PLANNING MODEL:

Introduction:

The most critical element in the process is managements appreciation for

the ways in which its human resource decisions affect the companys ability

to achieve its business plans. HRP must not only be seen as a way of coping

with possible crises such as resignations or serious illnesses but HRP must

be seen as a way of making the organization more flexible and

entrepreneurial.

Traditional HR Planning is usually initiated and managed by the HR

department. However, since information is needed from all parts of the

organization, Strategic HR Planning involves line managers as well as HR

experts.

The process begins with EVALUATING THE ORGANIZATIONS

EXISTING STRATEGIC OBJECTIVES. Thus, the HR manager must have

specific knowledge of the organization strategic goals and have an input inthe strategic plan. The requirements of meeting these objectives are then

compared with the human resources available in the market place.

The second step in the HRP process involves the GATHERING OF

INFORMATION FROM THE EXTERNAL AND INTERNAL

ENVIRONMENT. Information which can be gleaned from the external

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environment includes workforce patterns and conditions, social values and

lifestyles and technological developments. Information from the internal

environment covers areas pertaining to retirement patterns, current

workforce skills, or decisions to automate facilities. A system of

environmental scanning may be employed to assist in information managers

of what is likely to happen so that they can prepare for shifts in the

environment.

The third step involves the DEMAND AND SUPPLY FORECASTING OF

LABOUR. Forecasting is necessary to ensure that appropriate staffing will

be available to carry out the organization plans. Here, the HR manager

seeks to identify the supply and demand for the various human resources.

Three sets of forecasts needs to be done one for personnel needs, supply of

inside candidates and external candidates. Statistical methods as well as

qualitative methods may be employed to forecast demand and supply oflabour. Statistical methods such as trend analysis, ration analysis and

productivity ratios are excellent for capturing historical trends and also

predictions are more precise under the right conditions. However, this

method does not take into account important events that have no historical

precedence and as such managerial judgment whereby each department

estimates it own needs for employees or best or worse case scenarios may be

needed.

Fourthly, the likely results of forecasting activity are the IDENTIFICATION

OF A POTENTIAL MISMATCH BETWEEN FUTURE DEMAND AND

SUPPLY. The HR manager will look at the variances which arise between

the demand and supply of labour and account for them.

In studying these, if the HR practitioner finds that there is a surplus then

there might be some form of dejobbing whether by laying off workers,

encouraging early retirement.

On the other hand, if there is a shortage the company may decide to recruitnew employees or take existing employees to work overtime.

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Transformational Versus Transactional Leadership: The leader's

approach to influenceTransactional Leaders- Transactional leaders views the leader-follower

relationship as a process of exchange. They tend to gain compliance by

offering rewards performance and compliance or threatening punishment for

non performance and non compliance. The transactional leader tends to use

compliance approaches 1-5 listed below, in that they attempt to tap the

intrinsic process and instrumental sources of motivation.

Transformational Leaders- Transformational leaders, in contrast, are more

visionary and inspirational in approach. They tend to communicate a clear

and acceptable vision and goals, with which employees can identify and tend

to engender intense emotion in their followers. Transformational leaders use

compliance approaches 6-10 below in that they attempt to tap the self

concept and goal identification sources of motivation. Rather than

exchanging rewards for performance, transformational leaders attempt tobuild ownership on the part of group members, by involving the group in the

decision process. When transformational leaders are success, they are able

to move followers from external to internal control, that is, the desired

behaviors or behavioral patterns become internalized rather than being

driven through extrinsic exchange. When the behavior becomes

internalized, the leader need to monitor employee behavior is greatly

reduced. Transformational leaders facilitate this transition from external to

internal control by:

1. Changing the mental models of employees

2. Linking desired outcomes to values held by employees

3. Creating employee ownership in outcomes so that positive outcomes

validate the self concept of employees.

4. Building strong employee identification with the group or

organization.

Bass defined transformational leadership in terms of how the leader affects

followers, who are intended to trust, admire and respect the

transformational leader.

He identified three ways in which leaders transform followers:

Increasing their awareness of task importance and value.

Getting them to focus first on team or organizational goals,

rather than their own interests.

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Activating their higher-orderneeds.

Charisma is seen as necessary, but not sufficient, for example in the way

that charismatic movie stars may not make good leaders. Two key

charismatic effects that transformational leaders achieve is to evoke strong

emotions and to cause identification of the followers with the leader. This

may be through stirring appeals. It may also may occur through quieter

methods such as coaching and mentoring.

Bass has recently noted that authentic transformational leadership is

grounded in moral foundations that are based on four components:

Idealized influence

Inspirational motivation

Intellectual stimulation Individualized consideration

...and three moral aspects:

The moral character of the leader.

The ethical values embedded in the leaders vision,

articulation, and program (which followers either embrace or reject).

The morality of the processes of social ethical choice and

action that leaders and followers engage in and collectively pursue.

In contrast to Burns, who sees transformational leadership as being

inextricably linked with higher order values, Bass sees it as amoral, and

attributed transformational skills to people such as Adolf Hitler and Jim

Jones.

Transformational Leadership

Disciplines > Leadership > Leadership styles > TransformationalLeadership

Assumptions | Style | Discussion | See also

Assumptions

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People will follow a person who inspires them.

A person with vision andpassion can achieve great things.

The way to get things done is by injecting enthusiasm and energy.

Style

Working for a Transformational Leader can be a wonderful and uplifting

experience. They putpassion and energy into everything. They care about

you and want you to succeed.

Developing the vision

Transformational Leadership starts with the development of a vision, a

view of the future that will excite and convert potential followers. Thisvision may be developed by the leader, by the senior team or may emerge

from a broad series of discussions. The important factor is the leader buys

into it, hook, line and sinker.

Selling the vision

The next step, which in fact never stops, is to constantly sell the vision.

This takes energy and commitment, as few people will immediately buy

into a radical vision, and some will join the show much more slowly than

others. The Transformational Leader thus takes every opportunity and will

use whatever works to convince others to climb on board the bandwagon.

In order to create followers, the Transformational Leader has to be very

careful in creating trust, and their personal integrity is a critical part of the

package that they are selling. In effect, they are selling themselves as well

as the vision.

Finding the way forwards

In parallel with the selling activity is seeking the way forward. Some

Transformational Leaders know the way, and simply want others to follow

them. Others do not have a ready strategy, but will happily lead the

exploration of possible routes to the promised land.

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