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ITFT - HRD & Performance Appraisal

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Human Resource Development, Employment Training, Employee Career Development, Performance Management, Manpower Planning, Role of HRD, Methods of Training, Compensation & Wages, Incentives, Bonus, Methods of Wage Payment & Incentive Plans, Performance Appraisal

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ITFT - HRD & Performance Appraisal

  1. 1. Human Resource DevelopmentDevelopment ITFT College, Chandigarh 1 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  2. 2. 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. ITFT College, Chandigarh 2 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  3. 3. Human Resource Development includes ITFT College, Chandigarh 3 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  4. 4. Employee training ITFT College, Chandigarh 4 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  5. 5. Employee career development ITFT College, Chandigarh 5 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  6. 6. Performance management and development ITFT College, Chandigarh 6 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  7. 7. Organization development. ITFT College, Chandigarh 7 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  8. 8. Role of HRD ITFT College, Chandigarh 8 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  9. 9. • Better performance • Develops constructive mind and overall personality ITFT College, Chandigarh 9 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  10. 10. • Develop each individual capabilities • High motivation • Need based training programsprograms ITFT College, Chandigarh 10 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  11. 11. • 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. ITFT College, Chandigarh 11 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  12. 12. 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 ITFT College, Chandigarh 12 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  13. 13. 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 ITFT College, Chandigarh 13 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  14. 14. 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 ITFT College, Chandigarh 14 4/26/2014 Trend analysis Work load analysis Work force analysis Other methods PDF created with pdfFactory Pro trial version www.pdffactory.com
  15. 15. 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. ITFT College, Chandigarh 15 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  16. 16. 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 ITFT College, Chandigarh 16 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  17. 17. Training Needs • Changing Technology • Quality Conscious Customer • Greater Productivity ITFT College, Chandigarh 17 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  18. 18. • Stable workforce • Increased safety • Better management ITFT College, Chandigarh 18 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  19. 19. Methods of Training ITFT College, Chandigarh 19 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  20. 20. On the Job Training ITFT College, Chandigarh 20 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  21. 21. Coaching Job Rotation Counseling Job Rotation ITFT College, Chandigarh 21 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  22. 22. Off the job Training ITFT College, Chandigarh 22 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  23. 23. Classroom Method Simulation Sensitivity training ITFT College, Chandigarh 23 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  24. 24. Case Study Method Conference ITFT College, Chandigarh 24 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  25. 25. Compensation & Wages • It refers to wide range of financial and non financial rewards to employees for theiremployees for their services ITFT College, Chandigarh 25 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  26. 26. 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 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  27. 27. 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 ITFT College, Chandigarh 27 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  28. 28. • 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. ITFT College, Chandigarh 28 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  29. 29. • 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. ITFT College, Chandigarh 29 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  30. 30. Incentive programmes Sales Incentives ITFT College, Chandigarh 30 4/26/2014 Bonus PDF created with pdfFactory Pro trial version www.pdffactory.com
  31. 31. Skill Based Pay Merit Pay ITFT College, Chandigarh 31 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  32. 32. Profit Sharing Employee Stock Ownership Plan (ESOP)ITFT College, Chandigarh 32 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  33. 33. Methods of Wage payments and Incentive Plans • Time Wage System • Piece Wage System ITFT College, Chandigarh 33 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  34. 34. 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. ITFT College, Chandigarh 34 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  35. 35. 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. ITFT College, Chandigarh 35 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  36. 36. 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. ITFT College, Chandigarh 36 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  37. 37. 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. ITFT College, Chandigarh 37 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  38. 38. • 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. • ITFT College, Chandigarh 38 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  39. 39. 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. ITFT College, Chandigarh 39 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  40. 40. 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. ITFT College, Chandigarh 40 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  41. 41. ITFT College, Chandigarh 41 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  42. 42. 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. ITFT College, Chandigarh 42 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  43. 43. 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. ITFT College, Chandigarh 43 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  44. 44. • 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. ITFT College, Chandigarh 44 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  45. 45. 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. ITFT College, Chandigarh 45 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  46. 46. Self Appraisal ITFT College, Chandigarh 46 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  47. 47. Peer evaluation Staff evaluation ITFT College, Chandigarh 47 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  48. 48. 360 Degree Appraisal ITFT College, Chandigarh 48 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  49. 49. 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? ITFT College, Chandigarh 49 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  50. 50. ITFT College, Chandigarh 50 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com

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