QUICK REVISION OF HRM –OLD QUESTION PAPER

•     QUICK REVISION OF HRM –OLD QUESTION PAPER 2

•     QUESTIONS FOR DISCUSSION

1.       DIFFERENTIATE BETWEEN PERFORMANCE APPRAISAL AND POTENTIAL APPRAISAL. EXPLAIN THE TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

2.       WHAT DO YOU MEAN BY COMPENSATION MANAGEMENT? WHAT ARE THE MAIN CONSIDERATION IN SETTING UP OF SYSTEM OF COMPENSATION MANAGEMENT?

•     DIFFERENTIATE BETWEEN POTENTIAL APPRAISAL AND PERFORMANCE

E APPRAISAL

•     A PERFORMANCE APPRAISAL IS A PROCESS OF EVALUATING THE EMPLOYEE’S PERFORMANCE OF JOB IN TERMS OF ITS REQUIREMENTS.

•     ACCORDING T CUMINGS,” THE OVERALL OBJECTIVE OF PERFORMANCE APPRAISAL IS TO IMPROVE THE EFFICIENCY OF AN ENTERPRISE BY ATTEMPTING TO MOBILIZE THE BEST POSSIBLE EFFORTS FROM INDIVIDUALS EMPLOYED IN IT. SUCH APPRAISALS ACHIEVES FOUR OBJECTIVES INCLUDING THE SALARY REVIEW,THE DEVELOPMENT AND TRAINING OF INDIVIDUALS,PLANNING JOB ROTATION AND ASSISTANCE PROMOTIONS.

•     POTENTIAL APPRAISAL

•     TO IDENTIFY THE POTENTIAL OF A GIVEN EMPLOYEE TO OCCUPY HIGHER POSITIONS IN THE ORGANISATIONAL HIERARCHY AND UNDERTAKE HIGHER RESPONSIBILITIES.

•     POTENTIAL APPRAISAL REFERS TO THE APPRAISAL I.E IDENTIFICATION OF THE HIDDEN TALENTS AND SKILLS OF A PERSON. THE PERSON MIGHT OR MIGHT NOT BE AWARE OF THEM,POTENTIAL APPRAISAL IS A FUTURE ORIENTED APPRAISAL WHOSE MAIN OBJECTIVE IS TO IDENTIFY AND EVALUATE THE POTENTIALS OF THE EMPLOYEES TO ASSUME HIGHER POSITIONS AND RESPONSIBILITIES IN THE ORGANIZATIONAL HIERARCHY.

•     DIFFERENCE BETWEEN POTENTIAL AND PERFORMANCE APPRAISAL

•     POTENTIAL APPRAISAL

1.       FORWARD LOOKING PROCESS

2.       IS AN ESTIMATION OF HOW WELL YOU MIGHT DO

3.       IT IS INFERRED FROM THE COMPETENCIES

4.       GOOD POTENTIAL CAN GUARANTEE GOOD PERFORMANCE

5.       WITH PROMOTION

·         PERFORMANCE APPRAISAL

1.       BACK WARD LOOKING PROCESS

2.       PERFORMANCE APPRAISAL IS AN ESTIMATION HOW WELL YOU DID

3.       BASED ON ACTUAL BEHAVIOUR AND RESULTS

4.       GOOD PERFORMANCE DOES NOT GUARANTEE GOOD POTENTIAL

5.       LINKED TO INCENTIVES AND INCREMENTS

•     TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

1.       CONFIDENTIAL REPORTS:-IN MOST OF THE GOVERNMENT DEPARTMENTS AND PUBLIC ENTERPRISES PERFORMANCE APPRAISAL IS DONE THROUGH ANNUAL CONFIDENTIAL REPORTS.

2.       GRAPHIC SCALE METHOD:-A RATING SCALE LISTS TRAITS AND A RANGE OF PERFORMANCE VALUES FOR EACH TRAIT. THE SUPERVISOR RATES EACH SUBORDINATE BY CIRCLING OR CHECKING THE SCORE THAT BEST DESCRIBE HIS PERFORMANCE FOR HIS TRAIT. THE ASSIGNED VALUES FOR THE TRAITS ARE THEN TOTALED

3.       STRAIGHT RANKING METHOD:-SIMPLEST AND OLD METHOD. EMPLOYEE IS JUDGED AS A WHOLE WITHOUT DISTINGUISHING THE RATE FROM HIS PERFORMANCE. A LIST IS PREPARED FOR RANKING THE WORKERS IN ORDER OF THEIR PERFORMANCE ON THE JOB. EXCELLENT EMPLOYEE AT THE TOP AND WORST AT THE BOTTOM

4.       TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

5.       PAIRED COMPARISON METHOD:- EVERY PERSON IS COMPARED TRAIT WISE OTHER PERSON ONE AT TIME. LIKE A IS COMPARED WITH B TO FIND OUT THE BEST PERFORMANCE, THEN WITH C,D AND E IN TURN AND PERFORMANCE IS RECORDED AND THE B IS COMPARED WITH C,THEN WITH D AND SO ON. THE RESULTS OF THESE ARE TABULATED AND A RANK IS ASSIGNED TO THEM.

6.       GRADING SYSTEM:- UNDER THIS SYSTEM CERTAIN FEATURES LIKE ANALYTICAL ABILITY. COOPERATIVENESS,DEPENDABILITY,JOB KNOWLEDGE, ETC ARE SELECTED FOR EVALUATION. THE EMPLOYEES ARE GIVEN GRADES ACCORDING TO THE JUDGMENT OF THE RATER. THE GRADES COULD BE A-OUTSTANDING,B-VERY GOOD.C-SATISFACTORY,D-AVERAGE AND E BELOW AVERAGE

•     MEANING OF COMPENSATION MANAGEMENT

1.       WAGE AND SALARY ADMINISTRATION AIMS TO ESTABLISH AND MAINTAIN AN EQUITABLE WAGE AND SALARY STRUCTURE AND AN EQUITABLE LABOUR COST STRUCTURE.

2.       S.P ROBBINS,” THE TERM COMPENSATION ADMINISTRATION OR WAGE AND SALARY ADMINISTRATION DENOTES THE PROCESS OF MANAGING A COMPANY’S COMPENSATION PROGRMME. THE GOALS OF COMPENSATION ADMINISTRATION ARE TO DESIGN A COST EFFECTIVE PAY STRUCTURE THAT WILL ATTRACT,MOTIVATE AND RETAIN COMPETENT EMPLOYEE.

•     OBJECTIVES OF WAGE AND SALARY ADMINISTRATION

1.       TO ESTABLISH FAIR AND EQUITABLE COMPENSATION OFFERING SIMILAR PAY FOR SIMILAR WORK

2.       TO ATTRACT COMPETENT AND QUALIFIED PERSONNEL

3.        TO RETAIN THE PRESENT EMPLOYEE BY KEEPING WAGES LEVEL IN TIME WITH COMPETITIVE UNITS

4.       TO KEEP LABOUR AND ADMINISTRATIVE COSTS IN LINE WITH THE ABILITY OF THE ORGANIZATION TO PAY

5.       TO IMPROVE MOTIVATION AND MORALE OF THE EMPLOYEES AND TO IMPROVE UNION MGMT RELATIONS

·         PRINCIPLES OF WAGE AND SALARY ADMINISTRATION

1.       WAGE POLICY SHOULD BE DEVELOPED KEEPING IN VIEW THE INTERESTS OF ALL CONCERNED PARTIES IE EMPLOYERS,EMPLOYEE,CONSUMER AND THE SOCIETY

2.       SHOULD BE FLEXIBLE

3.       DIFFERENCE IN PAY FOR JOBS AND ARE BASED ON VARIATIONS IN JOB REQUIREMENTS SUCH AS SKILL,RESPONSIBILITY,EFFORTS AND MENTAL AND PHYSICAL REQUIREMENTS

4.       CONSISTENT WITH OVERALL ORGANIZATIONAL PLANS AND PROGRAMMES

5.       MUST BE IN CONFORMITY WITH THE SOCIAL AND ECONOMIC OBJECTIVES OF THE COUNTRY

6.       PROPER SYSTEM OF OR PROMPT PAYMENT AND PROCEDURE TO HANDLE THE COMPLAINTS

7.       THE GENERAL LEVEL OF WAGE AND SALARY SHOULD BE IN LINE WITH THE PREVAILING LABOUR MARKET

•     FACTORS WHICH INFLUENCE THE COMPENSATION MANAGEMENT

•     INTERNAL

1.       ABILITY TO PAY

2.       JOB REQUIREMENTS

3.       MANAGEMENT STRATEGY

4.       THE EMPLOYEE

·         EXTERNAL

1.       DEMAND AND SUPPLY

2.       COST OF LIVING

3.       TRADE UNION’S BARGAINING POWER

4.       PSYCHOLOGICAL AND SOCIAL FACTORS

5.       ECONOMY

6.       TECHNOLOGICAL; DEVELOPMENT

7.       GOVERNMENT LEGISLATION