ITFT - HRD & Performance Appraisal

Human Resource
DevelopmentDevelopment
ITFT College, Chandigarh 1
4/26/2014
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DEFINITION
It is a continuous process to ensure the
development of employee competencies,
dynamism, motivation and effectiveness
in a systematic and planned way to meet
current and future job demands.current and future job demands.
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Human Resource Development
includes
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Employee training
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Employee career development
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Performance management and
development
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Organization development.
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Role of HRD
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• Better performance
• Develops constructive
mind and overall
personality
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• Develop each individual
capabilities
• High motivation
• Need based training
programsprograms
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• Competency and
excellence
• Contribute towards the
excellence of technical and
management education
• Promotes creativity,
innovation, human
Contd….
innovation, human
development, respect and
dignity
• Achieve excellence in every
aspect of working life
• Character building.
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Manpower planning
• Putting right number of people, right kind of people at the right
place, right time, doing the right things for which they are suited for
the achievement of goals of the organization. Human Resource
Planning has to be a systems approach and is carried out in a set
procedure. The procedure is as follows:
• Analyzing the current manpower inventory• Analyzing the current manpower inventory
• Making future manpower forecasts
• Developing employment programmes
• Design training programmes
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Steps in Manpower Planning
1.Analysing the current manpower inventory- Before a manager
makes forecast of future manpower, the current manpower status
has to be analysed. For this the following things have to be noted-
• Type of organization
• Number of departments• Number of departments
• Number and quantity of such departments
• Employees in these work units
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2. Making future manpower forecasts- Once the factors
affecting the future manpower forecasts are known, planning
can be done for the future manpower requirements in several
work units.
The Manpower forecasting techniques commonly employed by
the organizations are as follows:
Expert forecasts
Trend analysis
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Trend analysis
Work load analysis
Work force analysis
Other methods

3. Developing employment programmes- Once the
current inventory is compared with future forecasts,
the employment programmes can be framed and
developed accordingly, which will include
recruitment, selection procedures and placement
plans.
4. Design training programmes- These will be based
upon extent of diversification, expansion plans,
development programmes,etc. Training programmes
depend upon the extent of improvement in
technology and advancement to take place. It is also
done to improve upon the skills, capabilities,
knowledge of the workers.
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Meeting manpower needs
Replacement of manpower
Meeting growing manpower needs
Meeting challenges of technological environment
Importance of Manpower Planning
Coping with change
Adjusting manpower requirements
Recruitment and selection of employees
Placement and training
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Training Needs
• Changing Technology
• Quality Conscious Customer
• Greater Productivity
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• Stable workforce
• Increased safety
• Better management
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Methods of Training
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On the Job Training
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Coaching
Job Rotation
Counseling
Job Rotation
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Off the job Training
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Classroom
Method
Simulation
Sensitivity
training
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Case Study
Method
Conference
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Compensation & Wages
• It refers to wide
range of financial
and non financial
rewards to
employees for theiremployees for their
services
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Compensation & Wages
• The system of
compensation should
be so designed that it
achieves the following
objectives:
• Capable employees are
attracted towards theattracted towards the
organizations.
• The employees are
motivated for better
performance.
• The employees do not
leave the employer
frequently.ITFT College, Chandigarh 26
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Consideration in developing a
compensation plan
• Wage policies should be carefully developed,
having in mind the interests of
• Management as the representative of the owners
• The employees
• The consumers
• The community
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• Wages policies should be clearly expressed in
writing to ensure uniformity and stability.
• Wage decision should be checked against the
carefully formulated policies.
• Management should see to it that employees
understand and know the wage policy.
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• Wage policies should be evaluated from time
to time to make certain that they are adequate
for present need.
• Department performance should be checked
periodically against the standards set in
advance.advance.
• Job description and performance ratings
should be checked periodically to keep them
up to date.
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Incentive programmes
Sales
Incentives
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Bonus

Skill Based
Pay
Merit Pay
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Profit Sharing
Employee
Stock
Ownership
Plan (ESOP)ITFT College, Chandigarh 32
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Methods of Wage payments
and Incentive Plans
• Time Wage System
• Piece Wage System
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Time Wage System:
Advantages
• It is the simplest and the oldest method. It is easy to
understand and workers can easily compute their
own remuneration.
• Earnings of workers are regular and fixed and they do
not suffer from temporary loss of efficiency.not suffer from temporary loss of efficiency.
• As there is no pressure to speed up production, the
quality of work can be kept high. A worker can show
his skill.
• Learners can concentrate on learning the best
methods of work as their earning s are not dependent
on the amount of work.
• It is an objective method.
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Disadvantages
• The method provides no incentive for better performance
as reward is not proportionate to effort.
• Guaranteed remuneration makes workers indifferent and
complacent.
• Calculation of labor cost per unit is difficult as the total• Calculation of labor cost per unit is difficult as the total
wage bill does not change with the volume of production.
• In the absence of an incentive to hard work, productivity
of labor becomes low unless close supervision is used.
Thus, costs of supervision are high.
• Control over labor cost becomes difficult and more
payment may be made for the lesser amount of work.
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Time wage system is suitable under
following conditions:
• Where units of output are non-measurable an in case
of office work and mental work is involved as in policy
working.
• When quality of work is especially important, e.g.,
artistic furniture, fine jewelry, etc.artistic furniture, fine jewelry, etc.
• When supervision is good and supervisors know what
constitutes a “fair day’s work”.
• When workers are new and learning the job.
• When collective efforts of a group of persons are
essential for completing the job.
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Piece Wage System:
Advantages
• There is a direct relation between effort and reward;
workers who work hard and produce more get more
wages. This provides an incentive to increase
productivity.
• Ambitious and efficient workers are provided ample• Ambitious and efficient workers are provided ample
opportunity to utilize their talent and increase their
earnings and thereby improve their standard of living
and morale.
• The method is just and fair to all. Efficient workers get
ample reward, while shirkers are penalized. It
prevents soldiering on the job.
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• Management can distinguish between
efficient and inefficient workers for the
purpose of promotion, etc.
• Increase in productivity results in higher
output and lower costs of production per unit.
• The cost of labor per unit of output can be
easily calculated as the wage bill varies ineasily calculated as the wage bill varies in
direct proportion to the output.
• As workers themselves have a stake in
maximization of efficiency, cost of supervision
is low.
•
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Disadvantages
• It is very difficult to fix piece wage rates. Employers often cut the
piece rate when they find workers are producing large
quantities.
• The earnings of workers are not stable and they may suffer due
to temporary delays or difficulties. They feel insecure and
dissatisfied.dissatisfied.
• Employees may not stress quality so that rigid quality control
becomes necessary.
• This system may create jealousy between efficient and
inefficient workers. Trade unions do not like it as it affects their
solidarity.
• Detailed records of production have to be kept so that the
clerical work is increased. The method is not practicable when
contribution of individual workers cannot be calculated, i.e.,
construction work.
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Piece wage system is suitable under
the following conditions:
• When work done by an individual worker can be measured
accurately, e.g., production of standardized goods in the
factory.
• When the quantity of output depends directly upon the skill
and efforts of the worker.
• Where the flow of work is regular and interruptions are
minimum i.e., repetitive jobs.minimum i.e., repetitive jobs.
• Where quality and workmanship are not very important.
• In large scale production involving heavy overheads and
heads and broad supervision.
• When methods of production are standardized and the job
is of a repetitive nature.
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Performance Appraisal
• Performance appraisal is a method of evaluating the
behaviour of employees in the work place normally
including both the quantitative and qualitative aspects
of job performance.
• Performance refers to the degree of accomplishment of
the tasks that make up an individual’s job. It indicates
how well an individual is fulfilling the job demands.
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Importance of Performance
Appraisal
• Performance appraisal is the systematic
description of an employee’s job relevant
strengths and weakness.strengths and weakness.
• The basic purpose is to find out how well the
employee is performing the job and establish
a plan of improvement.
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• Appraisal is arranged periodically according to
a definite plan.
• Performance appraisal is not job evaluation.
Performance appraisal refers to how well;Performance appraisal refers to how well;
someone is doing the assigned job. Job
evaluation determines how much a job is
worth, to the organization and therefore,
what range of pay should be assigned to the
job.
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Provide data for
evolving
development plans
for individuals
Provides inputs for
decisions on
transfers, promotions
etc.
Help to achieve
organization’s task
through guided efforts
of individuals
Objectives of Performance Appraisal
Performance
appraisal system
Provide data in terms of
needs aspirations of
individuals to review
company policies and
structure
Enables clarification of
expectations between
superiors and
subordinates
for individuals etc.
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Self Appraisal
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Peer
evaluation
Staff
evaluation
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360 Degree Appraisal
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Questions
Q1 What is human resource development?
What are the roles of HRD?
Q 2 What is Performance Appraisal? Explain the
various methods of performance appraisal?
Q 3 What is Training? What are the various
methods of training?methods of training?
Q 4 What are incentives? What are the various
considerations in developing compensation?
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ITFT - HRD & Performance Appraisal

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