NOTA HRM
CHAPTER 1: INTRODUCTION TO HRM
Human Resource Management
Development and implantation of systems in an organization for attracting, developing and retaining a high-performing workforce
Other titles for HRM specialist
Welfare officer
Personnel manager
Human resource manager
Human capital manager
Historical Factors Impacting HRM
THE INDUSTRIAL REVOLUTION 1850-1920
Specialization
Exploitation of workers
Worker alienation
HUMAN RELATIONS APPROACH 1930-1950
Emphasis on supervisory training
Recreation programs
Welfare programs
RECENT DEVELOPMENT 1950-2020
Increased labor legislation
Organizations getting bigger
Increasing workforce diversity
Rapid changes
HRM Activities
Employment
Human resource development
Performance management
Compensation
Industrial relations
Organizational safety & health
Changes Affecting HRM
Technological changes
Globalization and increased competition
Employee education and expectations
Workforce diversity
Useful Malaysian Statistics
Population: 32.7 million (2020)
Current labour force employed: 77.6% (11.87 million)
Unemployment rate: 4.8%
Number of foreign workers: 1.38 million
Life expectancy (Males-At age 65 years): 79.8 years (2019)
Life expectancy (Females): 82.1 years (2019)
Criteria of dedicated HRM department
Ownership of the company
Philosophy of top management
Size of the company
Unionization of the workforce
HRM is a Shared Function
In organizations with an HRM Department, the function of HRM is shared between this department and ALL managers and supervisors.
Sharing leads to conflict.
Agreement must be made so that tasks and duties are clearly assigned.
Personal Qualities and Skills Required of HRM Specialists
Communication skills
Ability to bring about change
Information technology (IT) savvy
Numerate and able to analyse data
Ability to understand the business context
High ethical standards
Functions of HR Department
Employment
Training and Development
Payment/ Reward Systems
Health and Safety
Employee Services/ Welfare
Productivity Improvement Schemes
Industrial relations
Role of the Ministry of HR
The Ministry
Sets policies
Prepares draft employment legislation
Enforces the employment legislation
Organization Chart
MINISTRY OF HUMAN RESOURCES
Department of labor
Department of manpower
Department of skills development
Department of Trade Union Affairs
Department of Industrial Relations
Department of Occupational Safety and Health
Other organization of relevance to HRM
The Employees Social Security Organization
Pembangunan Sumber Manusia Bhd.
National Institute of Occupational Safety and Health
Skill Development (Loan) Fund Corporation
The Employees Provident Fund
The employment laws
The Employment Act 1955
The Sabah Labour Ordinance, updated 2005
The Sarawak Labour Ordinance, updated 2005
The National Wages Consultative Council Act 2011
The Employees Provident Fund (EPF) Act 1991
The Employees Social Security Act (SOCSO) 1969
The Occupational Safety and Health Act (OSHA) 1994
The Factories and Machinery Act 1967
The Children and Young Persons (Employment) Act 1966
The Employment (Restriction) Act 1968
The Trade Unions Act 1959
The Industrial Relations Act 1967
Pembangunan Sumber Manusia Bhd. Act 2001
The Skills Development Fund Act 2004
The National Skills Development Act 2006
The Minimum Retirement Age Act 2012
CHAPTER 2: LEGAL ENVIRONMENT
LIST OF EMPLOYEMENT LAWS
The Employment Act 1955
The Children and Young Persons (Employment) Act 1966
The Wages Council Act 1947
The Employees Provident Fund Act 1991
The Workman’s Compensation Act 1952
The Employees Social Security Act 1969
The Occupational Safety and Health Act 1994
The Trade Unions Act 1959
The Industrial Relations Act1967
ACT: laws enacted by the Parliament.
ENACTMENT: laws enacted by the federal legislature between 1 April 1946 - 10 September 1959. Laws promulgated by the Yang Di-Pertuan Agong during an emergency proclaimed under Article 150 of the Federal Constitution are also known as ordinances
ORDINANCE: laws enacted by State Legislative Assemblies. However, the State Legislative Assembly laws in Sarawak are known as ordinances.
EMPLOYMENT ACT 1955
Enforced by the Labor Department
Sets minimum labor standards for workers and seek to protect them from exploitation.
Only applies to employees and their employers.
Self-employed persons and other workers who are not employees are not protected by employment laws.
The employment laws protect only employees hired under a contract of service.
CONTRACT OF SERVICE
Once an employee accepts an offer of employment from an employer, a contract of employment (contract of service) comes into existence.
It’s an agreement between an employer and an employee that can be enforced in a court of law.
The terms and condition/details of the employment should be expressly and clearly stated to avoid future dispute (working hours, leave benefits, job scope, etc.)
The terms of contract must be valid & not conflict with the statutory rights of employee as laid down in employment legislation
Employment contract must be carefully drafted/ clearly written.
An employment of contract should:
- Compliant with the law
- Written in a language the employee can understand
- Complete include all the necessary terms and conditions- wages, holidays, perks for some job, number of hours per day or per week.
The express terms of contract are usually found in letters of appointment, company handbooks and collective agreements. The items may be descriptive, discretionary or prescriptive.
• Descriptive: Only for the purposes of information like policy statements
• Discretionary: Employer reserves the right choice about certain benefit.
• Prescriptive: Those which are intended to be legally binding.
TERMS IN CONTRACT OF SERVICE
• Job title
• Wages and details of other monetary payments such as allowances and bonuses
• Normal working hours and whether there is a requirement for the employee to work overtime
• Holiday and leave entitlements, other benefits
• Probationary period
• Notice period prior to termination
• Retirement age
• Requirement of confidentiality
• Requirement to comply with company rules
• Penalties which may be imposed in cases of misconduct
• Mutual agreements
• Terms and condition (T&C) of contract can only be changed by mutual consent.
LABOR COURT
When a dispute arises between an employer and employee concerning the latter’s entitlements under the Act, the Labor Department Officers are empowered to hear the dispute and make a decision
The types of claims heard by the Labor Department officers include claims for:
-Termination benefits
-Maternity benefits
-Overtime payments
-Sick pay
-Annual leave pays
-Public holiday pay
COVERAGE OF EMPLOYMENT ACT
Apply to Peninsular Malaysia and the Federal Territory of Labuan only.
The employees in East Malaysia is covered under The Sabah and Sarawak Labor Ordinances (<RM2500).
Covers:
• Employees in the private sector earning not more than RM2000 per month.
• Those who work as manual labors, supervise manual labors, operate or maintain machines.
TERMINATION OF MISCONDUCT
Section 14 gives the right to an employer to dismiss, downgrade or impose any other lesser punishment on an employee who, after holding of a ‘due inquiry’, is found guilty of misconduct.
If the employer wishes to suspend the employee from work to facilitate investigations or for any other reason, they can do so up to a maximum of 2 weeks.
Employee is entitled to half of his wages during the suspension period.
If he is subsequently found not guilty of any misconduct, the remaining half-pay must be paid back to the worker concerned.
BREACH OF CONTRACT
According to Section 15, if an employer fails to pay wages as required by the relevant section on wages, then they are guilty of breach the contract.
If the employer intentionally refused to pay the employee’s wages, the employee could walk off the job without giving notice and in fact, could claim for a constructive dismissal.
The breach does not occur until the employee has been absent for > 2 consecutive working days. Thus, the absent for one or two days is misconduct for which disciplinary action can be taken but it cannot be cause to assume the employee has breached his contract.
THE WAGES COUNCIL ACT 1947
Wages is defined as basic wages and all other payments due under the contract of service excluding annual bonus, overtime payments, commissions, and allowances.
Every employer shall pay to each of his employees not later than the seventh day after the last day of any wage period the wages, less lawful deductions.
The Minimum Wages, that is RM1,200 per month for Peninsular Malaysia, and RM1,100 for Sabah, Sarawak and Labuan take affect from 1st February 2020.
The Labor Department would also ensure employers complied with the enforcement of the new minimum wage.
The implementation of the new minimum wage covered all employers including the hospitality sector, and their employers were required to pay a minimum base salary (without any element of service charge) of not less than RM1,200 a month in the Peninsular.
WOMEN EMPLOYMENT
Mostly concern working hours and maternity benefits, career development
No employer shall require any female employee to work in any industrial or agricultural undertaking between the hours often 10.00PM TO 5.00AM BUT since 2003, the restriction is an exempted if employer provides transport to and from the workplace for the females working at night, rotating shift, pays shift allowances and other appropriate safety action.
Every female employee are entitled to 90 days’ (consecutive days) maternity leave (extended) each and every time they give birth (Effective January 1, 2021) – New Malaysian 2020 Budget
Female workers is entitled to be paid a maternity benefit/allowance which is an amount equivalent to her wages during the maternity leave period if at the time of confinement, she has no more than 5 surviving children and she has served the employer for at least 90 days. This sum is payable even she has died during maternity period or resigns from her job during the last 4 months of her pregnancy.
WORKING HOURS & HOLIDAYS
Rest day: Every employee shall be allowed in each week a rest day of one whole day
Hours of work: An employee shall not be required under his contract of service to work:
-more than five consecutive hours without a period of leisure of not less than thirty minutes duration;
-more than eight hours in one day;
-in excess of a spread over period of ten hours in one day;
-more than forty-eight hours in one week (6 days X 8 hours)
TERMINATION BENEFITS
Employees are not entitled to termination benefits if they retire at the age stipulated in the employment contract, if they dismissed for misconduct or poor performance or if they resign of their own accord.
The termination benefits are payable when the employee is retrenched with those workers with a minimum of 12 months’ service.
The quantum is:
1. 10 days’ wages for every year of employment if employed for, 2 years.
2. 15 days’ wages for every year of employment if employee has between 2 and 5 years of service
3. 20 days’ wages for every year of employment if employed for > 5 years.
THE CHILDREN AND YOUND PERSONS (EMPLOYMENT) ACT 1966
Malaysian law does not prohibit children from being employed. However, try to prevent the exploitation of child labor.
Definition of child: a person under the age of 16.
Definition of young person: Between 16 – 18 years old.
EMPLOYMENT OF CHILDREN
• A child may be employed in ‘light work suitable to his capacity’ in their family’s undertaking.
• They may also work in public entertainment or in any areas relating to his studies in any school or training institution or as an apprentice.
• Children may not work between the hours of 8.00 pm. – 7.00 a.m. and they must be permitted a rest of 30 mins after every 3 consecutive hours of work. They may not work more than 6 hours per day.
• The restriction on night work does not apply if the child is working in any public entertainment
EMPLOYMENT OF YOUNG PERSON
• Young people are not permitted to work between 8.00 p.m. and 6.00 a.m. and they are entitled to a rest break of at least 30 mins every 4 hours. They may not work > 7 hours in one day.
• If the young persons are employed in public entertainment or the agricultural sector, the restrictions on night work do not apply.
• A major electronics company in Seremban was caught by the Labor Department employing a ‘child’ and 64 ‘young persons’. The employees concerned were found to be working in excess of the permitted daily hours; were not given the required rest breaks and were working after 8.00 p.m. – all offences under the law.
EMPLOYEES PROVIDENT FUND
To ensure workers have funds available on their retirement.
Administered by the Employees Provident Fund Board which makes all policy decisions concerning the Fund involving a Chairman, Deputy Chairman, and 18 other members including representatives from the gov., employers and employees.
An investment panel is appointed separate from the Board to formulate investment policies.
Certain categories of employees have the option whether or not to join as members of the Fund.
EPF MEMBERSHIP
-All employees are required to become a member of the Fund. (Refer the definition of employee under EA).
-Any worker over the age of 55 who has not withdrawn all of his savings from the Fund remains a member and continues to contribute if he is still employed
EPS CONTRIBUTORS
Compulsory:
-Private sector: Full time workers, part time workers, permanent workers, temporary/ contract workers, probationers, >55 y/o, not withdrawn all savings
Optional:
-Domestic servants
-Foreign employees
-Self-employed persons: sole proprietors and partners in partnership
-Pensionable employees
-Employee who withdrawn their savings at 55 y/o
-Subsequently re-employed
EMPLOYEES SOCIAL SECURITY ACT 1969
Applies to employees throughout all of Malaysia in all industries in the private sector who earns less than RM3000 per month
The only exception is foreign workers since 1993 who are now protected under the Workmen’s Compensation Act. Instead, the employers are required to buy insurance to cover their liabilities to these workers.
The principle “once in, always in”
An employee who is not required to become a member of SOCSO, because his salary for his first job was > RM3k, can opt to become a member, providing his employer agrees to contribute on his behalf; there must be mutual agreement.
Those earning > RM3k per month are protected in the event of an accident by insurance policies taken out on a group basis by their employers
Purpose of Employees’ Social Security Act
Employers are responsible for registering their employees as members of SOCSO. Any employers who fail to comply is liable to be prosecuted.
SOCSO has two schemes:
Employment Injury Insurance Scheme
Invalidity Pension Scheme
WORKMEN’S COMPENSATION ACT 1952
This act became important to foreign workers in the country except for domestic servants.
These workers had previously been covered by SOCSO.
Covers foreign workers who are paid up to RM 500 per month or who are employed as manual workers, irrespective of their wages.
Enforced by the Labor Department
Foreign workers who are injured as a result of a work-related accident and who are disabled for a period of 4 days or more are entitled to be paid compensation.
If the worker dies, the entitlement is given to their dependents.
All claims for compensation are made via the Labor Department.
Employers must take out an insurance policy to cover liability under the act.
Inform within 10days of its occurrence to the authority.
Where a death occurs, a maximum lump sum of RM 25k will be paid by the insurance company to the employee’s dependents, the amount depending upon the accident status.
OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) 1994
Gazette on the 25 February 1994 by the Malaysian Parliament.
Enforced by the Department of Occupational Safety and Health
To ensure that all parties at the workplace are held equally responsible for safety and health.
Applies throughout Malaysia to all industries and sectors. The only exceptions are those employed in the Armed Forces and workers govern by the Merchant Shipping laws.
To ensure safety at the workplace;
• Carry out inspections at workplaces
• Organize promotional activities
• Assist government departments with technical expertise
• Carry out activities aimed at improving safety and health
NATIONAL COUNCIL
• Consisting of between 12 and 15 members appointed by the Minister of Human Resources.
• The Council is tripartite which involved representatives from employees, employers and the Ministry, which there must at least 3 members of the Council with one whom must be a woman, from professional bodies in the field of safety and health.
• The council is an advisory body which:
- Meets periodically to discuss amendments to the health & safety legislation
-To keep relevant statistical record
-To develop codes of practice
-To generally gives ideas & suggestions on the improvement of the administration and enforcement of OSH matters.
DUTIES EMPLOYERS
• The Act requires the employees to wear, at all times, any protective equipment or clothing provided by the employer for their safety, and to comply with any instruction relating to safety.
• The equipment might include safety helmet, eye googles or glasses, earplugs, face shield, apron, safety shoes, gloves, respirator & safety harness.
• The employer has the right to take disciplinary action against any worker who refuses a legitimate order.
• An employee could be prosecuted and if found guilty, the courts may impose of a fine up to RM 1000, or a period or imprisonment for up to 3 months.
• Employers are responsible to provide a workplace which, ‘so far as is practicable’, is without risk to health.
• This obligation extends to:
✔ Ensuring proper arrangements for the use or operation, handling storage and transport of plant and substances
✔ The provision of information, training and supervision to ensure safety of employees
✔ The maintenance of the place of work and its entrances and exits
✔ The provision of adequate welfare facilities for workers
SAFETY POLICY
• Every employer with > 5 employee is required to prepare a written statement of his safety and health policy and to make this policy known to his employees.
• Once the employer has drafted a safety policy, it must be communicated to all employees. This can be done in a variety of ways including:
-Framing the policy and hanging it in a prominent place visible to all workers.
-Giving every individual employee a copy
-Printing the policy on the inside cover of the collective agreement or company
handbook
-A discussion on the policy and related matters during induction programs.
TRADE UNIONS ACT 1959
Administered by the Trade Unions Department
Permitting workers to form and join trade unions provided these are registered organizations
Provides: The procedures for applying for registration, the use of union funds, the rights and liabilities of unions, and other matters relating to the constitution of unions.
MUTC: MALAYSIAN TRADE UNION CONGRESS
is the most representative workers' organization in the country.
It has three main objectives:
✔ To promote the interest of its affiliate unions to improve the economic and social conditions of workers;
✔ To ensure that policies are developed & action taken towards ensuring full employment, establishing a
minimum wage, a legal max. working week of 44 hours, and training centers for workers; and
✔ To establish Social Security measures that provide retirement benefits, as well as protection against
sickness, unemployment, old age, and injury.
(Actively involved in organizing workers, helping unions obtain recognition, and assisting unions in their negotiations with management)
INDUSTRIAL RELATIONS ACT 1967
Enforced by the Industrial Relations Department
To provide systems which will encourage industrial harmony
Is applicable throughout Malaysia and provides for the regulation of relations between employers and workmen or employee and their trade union and the prevention and settlement of trade disputes.
Emphasizes on direct negotiation between employers and workmen or employees and their trade unions to settle their differences and to regulate their collective relationship
Protects the legitimate rights of employers and workmen or employees and their trade
unions.
Provides the procedure relating to submissions of claims for recognition and scope and representation of trade union and collective bargaining
Does not allow matters relating to promotion, recruitment, dismissal, transfer, retrenchment, reinstatement and allocation of duties and prohibition of strikes and lockouts over any of these matters to be included in the proposal for collective bargaining
provides for speedy and just settlement of trade disputes by conciliation or arbitration where direct negotiation fails
provides the power to the Ministry of Human Resources to intervene and to refer at any stage any trade dispute to the Industrial Court for arbitration
CHAPTER 3: JOB ANALYSIS JOB DESIGN
JOB ANALYSIS= JD+JS
DEFINITION
Techniques of studying a job to identify the skills, knowledge, experience and other requirements necessary to perform the job
PURPOSE
Recruitment and selection process
Evaluation tool in ensuring that employees are given appropriate training
Set objective for employee so their performance can be assessed and managed
Job: consists of a group of task that must be performed for an organization to achieve its goals.
Position: the collection of tasks and responsibilities performed by one person; there is a position for every individual in an organization.
Job Description (JD): Document that provides information regarding the essential tasks, duties and responsibilities of a job.
Job Specification (JS): A document that outlines the minimum acceptable qualifications a person should possess to perform a particular job.
INCLUDED
Job Description included tasks, responsibilities and duties
Job Specification included knowledge, skills and abilities
Human resource planning, recruitment, selection, training and development, performance appraisal, compensation and benefits, safety and health, employee and labor relations, legal considerations and job analysis for teams
RELATIONSHIP
Staffing: As a guideline to recruit new employees and provides job duties and job specification for selection process.
Training and Development: Determine training needs and develop instructional programs.
Performance Appraisal: Provides performance criteria for evaluating employees.
Compensation: Provide basis for determining employees’ rate of pay
Safety and Health: Specific information regarding those that are working in the hazardous position with proper safety policy to be followed.
Employee and Labor Relations: Information from job analysis can lead to more objective human resource decisions.
HOW
There are several potential sources of information which used alternately (depends on the organization) in job analysis.
If JA is being carried out for a job that already exists in organization, 2 most important sources that will be included are;
1. The worker that currently doing the job (incumbents)
2. The supervisor/Head of Department in which the job is being carried out.
Combination of sources/ technique to collect sufficient information;
✔ Interviews
✔Questionnaire
✔Observation
✔Conference of Experts
TYPES OF INFORMATION
• Work Duties/tasks (on daily basis-routine cleaning, selling, teaching or painting). The information also includes how, why and when the worker performs each task.
• Competencies (Oral communication, Written communication abilities, vision, flexibility and working with a team).
• Tools and equipment (information about tools/machine or computer usedto smoothen work process).
• Performance standards (quantity or quality levels for each job duty)
• Job context (physical working conditions, work schedule, and the organizational and social context- for instance, the number of people with whom the employee would normally interact).
• Individual requirements (Education, training, work experience and personal attributes such as physical characteristics, personality and interests).
PROCESS
1. Select a job to study
2. Determine information to collect – task, responsibilities, skills requirements, and credibility
3. Identify sources of data (best fit): Employee (Handle current post-vacancy), immediate supervisor/manager, Head of Department (HOD)
4. Identify method to use (data collection): Observation, records/reports, interview, questionnaire
5. Evaluate and verify data collection: 360-degree, other employees (indirectly involve in particular section), supervisor/manager
6. Write a job analysis report
HOW EXECUTE
STEP A: Identify data source
-Job analyst, employee, immediate supervisor
STEP B: Retrieve job data
-Task, performance, standards, duties, knowledge & skill required, tools used
STEP C: Segregate JD & JS
-JD: task, duty, responsibility
-JS: knowledge, skills, physical demands, abilities
STEP D: HR functions
-recruitment, selection, training, development, performance appraisal, compensation, OSH, IR
DATA SOURCE (JOB ANALYSIS INFORMATION)
HR PEOPLE (INTERNAL): HR Staff from the organization execute the job analysis process at an internal level – good as knowing the people inside the organization, easy to obtain data & smoothen the process
HR SPECIALIST (EXTERNAL): Outsource HR specialist from outside to analyze the position needed in the organization, due to the expertise more details can be retrieved for the benefit of the organization – cost incurred, fit for huge companies.
SUPERVISOR/MANAGER/HOD: Immediate supervisor/manager or even HOD are among the best people after the worker who directly involved in the particular post to describe the tasks & skills required and the additional credibility that could help to smoothen & improve the post duties
DATA COLLECTION METHOD
INTERVIEW
Types of interviews:
1. Individual interviews with each employee
2. Group interviews with group of employees who have the same job
3. Supervisor interviews with one or more supervisors who know the job
Guidelines
1. The job analyst and supervisor should work together to identify the workers who know the job best – and those who will be the most objective in describing their duties and responsibilities.
2. Establish rapport quickly with the interviewee. Know the person’s name, speak in simple
language, briefly review the purpose of the interview and explain how the person was chosen
for the interview.
3. Follow a structured guide and provide some open-ended questions like, “Was there anything we did not cover with our questions?”
4. When duties are not performed in a regular manner, ask workers to list their duties in order
of importance and frequency of occurrence.
5. After completing the interview, review and verify the data. Specifically, review the information with the worker’s immediate supervisor and with the interviewer.
Pros of interviews
1. Simple and quick way to collect information; Can uncover important activities that occur only occasionally or informal contacts that would not be obvious from the organization chart
2. Provides an opportunity to explain the need for and functions of job analysis
3. The employee can vent frustrations that may otherwise go unnoticed by management
Cons of interviews
1. The distortion of information caused by misunderstanding or falsification
2. Job analysis is often a prelude to changing a job’s pay rate. Employees may see the
interview as an efficiency evaluation that may affect their pay (revise pay)
3. Employees may exaggerate certain responsibilities while minimizing others.
QUESTIONNAIRE
Human Resource Officer have to decide how structured the questionnaire should be and what questions to include
Pros of questionnaire
• Quick way to obtain information from a large number of employees.
• It is cheaper than interviewing hundreds of workers, for instance.
Cons of questionnaire
• Developing the questionnaire and testing it can be expensive and time consuming.
OBSERVATION
• Useful when job consists mainly of observable physical activities such as assembly-line workers and accounting clerk.
• Is not appropriate when the job involves a lot of mental activity such as lawyer and engineer.
• Managers often use direct observation and interviewing together. One approach is to observe the worker on the job during a complete work cycle. For example, the cycle for accounts clerk may be one month as the tasks include closing accounts at the end of each month.
• These are all example of observation activities to collect the data.
HUMAN RESOURCE INFORMATION SYSTEM
• Consists of Information on employee’s personal details
KEY ELEMENTS OF JOB DESCRIPTION
HEADING
❑ Job title, code, location and grading
❑ Job Identification: Relationships between the job-holder and others. Distinguishes job from all other job.
❑ Brief statement on the purpose of the job.
❑ Essential Functions (Job Duties): Indicate responsibilities entails and result to be accomplished.
❑ Terms and conditions of employment to be given to the job-holder.
JOB TITLE
• Provides status to the employee
• Indicates the duties that the job entails
• Indicate the relative level occupied by its holder in the organizational hierarchy.
JOB IDENTIFICATION SECTION
• Departmental location of the job
• Person to whom the jobholder reports
• Basic pay
• Number of employees perform the job
• Number of employees in the department where the job is located.
ESSENTIAL FUNCTIONS
• Highlight the responsibilities that duties entails and results to be accomplished
• Indicate the tools and equipment used by the employee in performing the job
• Should comply with law by listing only essential functions of the job to be performed
ISSUES WITH JOB DESCRIPTION
1. If poorly written, they provide little guidance to the jobholder.
2. They are not always updated as job duties and specifications change.
3. They may violate the law by containing the specifications not related to the job success.
4. They can limit the scope of activities of the jobholder, reducing organizational flexibility.
CLEAR AND DETAILED
Create statements that:
• Are simply worded; eliminate unnecessary words or phrases.
• State the specific performance requirements of a job
TYPICAL INFORMATION (KASO’S)
Personal qualifications an individual must possess in order to be able to perform the duties and responsibilities successfully.
• The skills required to perform the job: Education or experience, specialized training, personal traits or abilities, interpersonal skills, or specific behavioral attributes.
• The physical demands of the job: Walking, standing, talking, reaching, lifting, and the condition and hazards of the physical work environment
JOB DESIGN
The enhancement of job analysis that improves job through technological and human considerations in order to enhance organization efficiency and employee job satisfaction/ is the process of organizing work into the tasks requirement to perform a specific job.
APPROACHES
1. Simplification: Assume that work can be breaking down into simple, repetitive tasks that maximize efficiency
2. Rotation: The process of rotating workers among different narrowly defined tasks without disruption the work flow
3. Enrichment: The process of putting specialized tasks back together so that one person is responsible for producing a whole production entire service.
4. Enlargement: The process of expanding a job’s duties (Expansion)/ adding more variety to jobs
DECISIONS
1. Who: Mental and physical characteristics of the work force
2. What: Tasks to be performed
3. Where: Geographic locale of the organization; location of work areas
4. When: Time of day: Time of occurrence in work flow
5. Why: organizational of rationale for the job: objectives and motivation of the worker
6. How: Method of performance and motivation
CHAPTER 4: HUMAN RESOURCE PLANNING & RECRUITMENT
HUMAN RESOURCE PLANNING
DEFINITION
HRP is the systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time.
HRP ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses.
To achieve the optimum/equilibrium use of an organization’s most valuable asset-quality employees (mentally, physically & psychologically) / (productive & profitable)
HUMAN RESOURCE PLANNING PROCESS
STEP 1: IDENTIFY/ ANALYZE LABOUR SUPPLY
Identify the company's current human resources supply. In this step, the HR department studies the strength of the organization based on the number of employees, their skills, qualifications, positions, benefits, and performance levels.
STEP 2: DETERMINE/FORECAST LABOUR DEMAND
The company need to outline the future of its workforce. HR people may consider issues like promotions, retirements, layoffs, and transfers-anything that factors into the future needs of a company. / External DD-technologies changes
STEP 3: BALANCING LABOUR DEMAND WITH SUPPLY (DD VS SS)
Balance between DD and SS. Forecast the employment demand, creates a gap analysis that lays out specific
needs to narrow the DD &SS.
STEP 4: DEVELOPING AND IMPLEMENTING PLAN
The answers to questions from gap analysis help to determine how & what to proceed. – Final phase of HRP
process; resources (budget) needed, the ability to implement & collaborative effort from all departments to execute that plan.
FORECASTING EXTERNAL HR SUPPLY
• Supply and demand of jobs or skills
• Educational attainment levels within a region
• Compensation patterns based on experience, education, or occupation
• Immigration and emigration patterns within an area
• Forecasts of economic growth or decline
• Competition for talent
• Industry or occupational expected growth levels
HR FORECASTING TECHNIQUES
• Zero-based forecasting – uses current level as starting point for determining future staffing needs.
• Bottom-up approach – each level of organization, starting with lowest, forecasts its requirements to provide employment needs.
• Mathematical models –assist in forecasting. Relationship between sales demand and number of employees needed is positive one.
• Simulation – technique with experimenting with real-world situation through a mathematical model.
FORECASTING HR REQUIREMENTS
• Estimate of numbers and kinds of employees the organization will need at future dates
• Demand for firm’s goods or services must be forecast
• Forecast is then converted into people requirements
FORECASTING HR AVAILABILITY
• Determining whether the firm will be able to secure employees with the necessary skills, and from what sources these individuals may be obtained
• Show whether the needed employees may be obtained from within the company, from outside the organization, or from a combination of the two sources
RECRUITMENT
DEFINITION
• Recruitment is the process of attracting a group of applicants, all of whom are at least minimally qualified to apply for job vacancies.
• Potential candidates can be found both inside and outside the organization.
• Many factors influence the organization’s ability to attract suitable employees, (location, public image, physical working environment, pay package, internal policies, etc.).
• Employers with strong brand names find it easier to attract talented job seekers, (BNM, AirAsia, Sime Darby, Maxis, Petronas, Telekom, TNB, etc.,)
RECRUITMENT PROCESS
Analyzing the job
Waiting JD and PC
Deciding the recruitment method
Deciding the application method
Marketing the job
Short-listing the candidate
Holding selection events
Make a decision and offer
Taking up reference
Inducting new employee
SOURCE OF RECRUITMENT
Internal sources
1. Transfer
2. Promotion
External sources
1. Recruitment at factory gate
2. Casual callers
3. Advertisement
4. Employment agencies
5. Management consultants
6. Educational institutions
7. Recommendations
8. Labour contactors
9. Telecasting
INTERNAL RECRUITMENT METHOD
1. Employee Audit or Inventory
•The human resource office can check through employees’ files from HRIS to identify any potentially suitable people.
•These people can be contacted and recommended to join the pool of candidates if they are interested.
•But, if records are not well kept, it may be difficult to determine which employee has the required abilities to fill the vacancy.
2. Job Posting and Bidding
•Notice on the organizational notice board or on the company intranet stating that a vacancy exists, outlining the specification and mentioning who should be contacted by those interested in applying.
•Interested workers will be required to apply through and get the recommendation of their superior.
3. Advantages
• Employment record of applicant available (foreknowledge of their strength & weakness)
• Better selection
• No induction needed.
• Little or no cost involved (Cost effective)
• Employees’ morale and motivation may be increased.
4. Disadvantages
• Filling a vacancy in one department may lead to a more serious gap in another.
• No suitable candidates may be available.
• Supervisors may be reluctant to release key employees.
• Limited choice
• Favoritism/Nepotism
EXTERNAL RECRUITMENT METHOD
Employment agencies & consultants
The Ministry provides an online recruitment service known as Jobs Malaysia which handled by The Department of Labor.
Employment agencies usually specialize in the recruitment of non-managerial staff.
Consultants can be expected to sell a number of services such as organizational restructuring, organizational development, and installing new systems.
Consultants concentrate on managerial level recruitment and sometimes use headhunting
Campus recruitment
Employee referrals
Unsolicited applicants’ files
Advertising in the mass media
The internet
Job fairs participation
Walk-in
Advantages
• Avoids inbreeding.
• Possible to widen choice of applicants by having a pool of candidates.
• Fairness
• Greater choice for selection
• Balance HR mix
• Environmental adaptability
• New perspective/ideas
Disadvantages
• High cost of recruitment process.
• Frustration among existing employees.
• Adaptability problems
• Wrong selection
• Not fit with organization culture
POTENTIAL COSTS OF A BAD RECRUITMENT DECISION
❑ Cost of mistakes, accidents and loss of customers caused by employees who cannot cope with the job.
❑ Cost of lowered morale amongst the employee’s supervisor and his or her co-workers who have to rework his mistakes or take over his tasks.
❑ Cost of defending a claim of dismissal without just cause or excuse, once the employee has been dismissed.
❑ Cost of recruiting a replacement.
❑ Cost of training a replacement.
❑ Financial and time cost have to be repeated (entire process-except JA)
CHAPTER 5: SELECTION
DEFINITION
• Selection is a process of selecting/choosing the most suitable candidate from a group of applicants for an available vacancy.
• Each applicant carefully assessed and compared their information (filtering)
• Filtering – most crucial step in the recruitment and selection process
SIGNIFICANCE
• If individuals are overqualified, underqualified, or for any reason do not fit either the job or the organization’s culture, they will be ineffective and probably leave the firm, voluntarily or otherwise.
• Employers spend a lot of time and energy before choosing which piece of industrial machinery (costing millions of ringgits) should be purchased. The same care should be made when choosing a new recruit.
TECHNIQUES
Application forms and Curriculum vitae (CV)/resume/biodata
Application form should adequately summarize the candidate’s information (Background, skills,
abilities and accomplishments)
The sections on a form can be divided into:
• Applicant personal details (name, address, contact number, email, IC, age, gender, status)
• Educational qualifications (school/college, level of qualification obtained, year of qualification
received, grades for every subject taken)
• Working experience (list of past employers, jobs held, time span for each job, salary paid)
• Specific skills (poor, good, excellent for language, both verbal and written, computer literacy)
• Interest or recreational activities/ Voluntaries
• Declaration that all information is accurate.
Reference check
• Check applicants’ activities on social media platform
• In resume -contain name of referees whom will be used by HR people to contact them in regards to enquiry about the applicant; either by face-to face or phone call or referees may fill in a standardized form by employer/organization.
• Prospective employers have the rights to conducts checking on applicant’s activities such as on Twitter, LinkedIn, Facebook, Instagram & YouTube. (Thoroughly checked)
Tests
To be useable test, tests must be valid (the intention of measurement; should test the ability of an applicant to perform a particular job) and reliable (consistent results will gain if repeated of if different testers are used, (accuracy))
Type of test
Performance test
Driving test
Keyboarding test
Language test
Computer usage test
Machine usage test
Aptitude test
• Attempt to discover a person’s potential ability and talents.
• Different jobs require different aptitudes such as; account clerks need numerical aptitudes, production line need manual dexterity.
• Useful to the employer wishing to recruit trainees and apprentices fresh out of school who have no technical background or work experience to prove their abilities.
• Reputable test will allow candidates to take test online and results may be given almost immediately.
Personality test
• Consists a series of questions which the candidate must answer in a given time period such as, ‘Which do you prefer: routine or constant change? Or ‘In group, do you introduce yourself or wait to be introduced?
• Projective tests like ink-blot tests need interpretation
• Study of handwriting
• E.g.: Big-5/OCEAN, Myers-Briggs Type Indicator, Hogan Personality Inventory, etc.
Intelligence test
• Intelligence is a useful attribute in most jobs today.
• Many assumes that the ore intelligent a person is, the better he can perform. Unfortunately, this is far from the truth.
• For instance- if a candidate with above average intelligence is given a routine job with little or no discretion & no opportunity to exercise his intelligence, he will soon become bored and frustrated.
• There are plenty of tests which do that accurately- but it is whether we can measure the amount of intelligence needed for a particular job.
Medical test
• To determine whether applicants are physically fit for the job being offered and whether they have any diseases that could be a problem once they are employed.
• Reasons:
1. To ensure that the applicant qualifies for the physical requirements of the position
2. To discover any medical limitations of the applicant
3. To establish a record and baseline of the applicant’s health
4. To reduce absenteeism and accidents by identifying health problems
5. To detect communicable diseases that may be unknown to the applicant.
Interviews
Objective:
• To assess communication skills
• To explore applicant’s background
• To see if applicant has the experience and knowledge necessary to do a good job
• To look for hints of personality traits which may be important for success on the job
Good interviewing requires concentration on 3 phases of the process:
1. Planning prior to the interview
• Timing: Decide duration should be taken for each interview session; which the length of interview will depend on few elements (number of vacancies, number of interviewers, interviewees & unexpected emergency).
• Venue (suitable with good ventilation)
• Topics of discussion: the interviewer must understand the JD and JS and have read candidate’s application form before he/they begins the interview, (time constraint)
2. The interview itself
• Establish rapport
• Avoid stress techniques
• Ask the right questions
3. Follow-up action after the interview
• Connected and follow-up action
Assessments center activities
RECRUITMENT AND SELECTION ISSUES
Nepotism
Employment of children
Hiring older workers
Employment of foreigners
ENVIRONMENTAL FACTORS AFFECTING SELECTION PROCESS
Speed of decision making
Organizational hierarchy
Applicant pool
Type of organization
Probationary period
THE SELECTION PROCESS
Initial screening
Completed application
Employment test
Comprehensive interview
Background examination
Medical/physical examination
Permanent job offers
Reject applicant
PRELIMINARY INTERVIEW
• Basic purpose of the initial screening of applicants is to eliminate those who obviously do not meet the position’s requirements.
• At this stage, the interviewer asks a few straightforward questions.
• Telephone Interview
• The goal of the phone interview is to cut down on wasted time and effort in the recruiting process.
SELECTION INTERVIEW
Timing
Venue
Planning
Skills
Questioning techniques
INDUCTION
• New recruits face ‘reality shock’.
• New recruits are anxious and stressed out.
• An effective induction program helps new recruits to adjust to their working environment and helps them become productive team members in a short period of time.
• All of them in need of support and encouragement from colleagues.
Organizational Issues: History, product of service, structure, policies and rules
Introductions: To supervisors, colleagues, trainers, people around
Employees Benefits and Procedures: Wages, rest breaks, holidays, benefits
Job Duties: Job location, relationship to other jobs, overview of job
CHAPTER 6: TRAINING & DEVELOPMENT
DEFINITION
TRAINING
Employees acquiring knowledge and learning skill that they will be use immediately, (Mello, 2013).
Provide employees the Knowledge, Skills needed to do a particular task or job, and attitude change may also be attempted, (Lim et al, 2013).
Help correct deficiencies in performance, (Luis et al, 2012)
Training is the organizational activity which aims to improve an employee’s current performance.
Education consists of activities designed to prepare employees for future jobs.
Why training is important:
Change attitudes
Develop skills
Increase knowledge
DEVELOPMENT
Learning that will aid the organization and employee later in the employee’s career, (Mello, 2013).
Developmental activities have long-term focus on preparing for future work responsibilities while also increasing the capacities of employees to perform their current jobs. (Lim et al, 2013)
Development is those learning activities designed to help the individual employee grow but which are not confined to a particular job.
Developmental opportunities are also a powerful attraction and help firms employ talented workers.
Developmental activities help to assist employee to sharpen their personal skills to handle the crucial situations in an organization.
PROCESS
IDENTIFY TRAINING NEEDS
Training is needed as the gap between an actual situation and the desired situation, (Yin, 2003).
Situation – Job performance, Knowledge, Skills, Behaviour or Attitude.
Training gap is the difference between the skills required to complete the job and the existing skill set of any particular team member.
2 Key questions must be tackled when conducting TNA?
WHO NEEDS TRAINING
HR staff who responsible for Training and Development will need to work with every Head of Department (HOD) to gain the precise details for whom needed training.
Those employees whose performance level are not meet Key Performance Indicator (KPI)/expectation will be identified through Performance Appraisal System.
Induction and general skill training will be provided to new recruits.
To those who request for training for job betterment.
WHEN TRAINING IS NEEDED
New hires
Change of job (job rotation, promotion, transferred, job enlargement, job enrichment)
Job/task change (new technologies, policies, procedures)
Performance deficiency detected
Merge and acquisition (Amazon.com + AMC Entertainment, UBER + GRUB, FB + Customer, Marvell Tech + In phi)
Safety training (regular basis)
TRAINING NEEDS ANALYSIS (TNA)
Process in which organization identifies T&D needs of its employees so that the employees will perform their job effectively. It involves a complete and comprehensive analysis at various level of the organization.
Step 1: Performance Gap Analysis
Current & desired results of the employee performance are compared to identify performance gaps
Step 2: Root Cause Analysis
To determine the basic issues behind the performance gasps
Step 3: Need Analysis
A detailed analyses carried out to design and implement the appropriate intervention to resolve the performance issues. (Analysis-training audience, job analysis, task analysis, environment analysis and cost-benefit analysis
Step 4: Recommendation
An appropriate training solution is proposed to improve overall work productivity
LEVELS OF ANALYSIS
Organization level
Organizational culture
Quality and productivity schemes
Operation level
Job analysis
Individual level
Evaluate individual performance against standards
SOURCE OF INFORMATION
Job description
Employees
Head of departments
Organizational records
Performance review documents
SET TRAINING OBJECTIVES
Terminal behavior required of the trainee
Standards of performance
Conditions for performance
DEVELOP/DESIGN TRAINING PROGRAM
Factors to consider
1. Audience/Number of Participants
2. Trainer/Facilitator
3. Venue
4. Duration/Scheduling
5. Budget
6. Training Content
7. Training Methods
8. Logistics
9. Accommodation
10. Food and Beverage
Training methods
Lectures
Audio-visual aids
Computer-aided learning/e-learning
Role-plays
Case studies and discussion
Simulation trainings
Coaching
Apprenticeship
Projects/Special assignments
Job rotations
Adventure learning
IMPLEMENT TRAINING PROGRAM
Resources and facilities will have to be booked
Trainees need to be informed of the program’s schedule
Course materials need to be printed and ready for distribution at the appropriate time
Food to be offered
The temperature of the training room.
EVALUATE TRAINING PROGRAM
REASONS FOR EVALUATION:
To improve the standard and effectiveness of the programs offered
To justify the financial investment in the training
To get feedback for ongoing improvement
To compare the effectiveness of two or more programs
To meet requirements set by legislation
KIRKPATRICK EVALUATION
Kirkpatrick (1959) identified four questions or levels of evaluation that need to be addressed:
1. What are the trainees’ responses to the program?
2. What have the trainees learned?
3. In what way has the behavior of the trainees changed after training?
4. How has the organization benefited from the training program?
NEW DEVELOPMENTS IN TRAINING & DEVELOPMENT
The Catalyst of Digitialization
End of 218th century: Mechanization, water and steam power
Beginning of 20th century: Mass production, assembly line, electricity
Beginning of 1970’s of 20th century: Computer and automation
Beginning of 2000’s: Cyber-Physical system
Training & Development
Augmented reality & virtual reality
Micro-learning
Niche learning
Digital twins for education
Gamification
New Developments in Practice
Role of HRD Profession
Active involvement in employee education
Rewards for improvement in employee education
Rewards to be associated with self-esteem and self-worth
Providing pre-employment market-oriented skill development education and post-employment for advancement education and training
Flexible access
Best Time to Impart Training to Employees
1. New recruits to the company
2. Transferees within the company
3. Promotions
4. New Plant or Equipment
5. New Technology Advancement
6. New Procedure, Standards, Rules and Practices
7. New Relationship and authorities
8. Maintenance of Standards
9. The Maintenance of Adaptability
10. The Maintenance of Management Skills & Standards
11. Retirement and Redundancy
Benefits of Effective Training
Productivity/Ask Model
Increases workers’ productivity level
Opportunity
Gives everyone the opportunity to progress, strengthen those skills with latest technologies
Retention & growth
Training boosts a feeling of value in employees. They’re more likely to enjoy their work (technology) and remain in organization for longer
Confidence
Training enhances employee’s confidence level which overall improve their performance level
How New Developments Implementation?
Providing information in micro-bites
Making the information accessible in more formats
Flipped classroom
Leaders taking the lead
Sustainability and retention
Experimental or learn
Human Resource Development Corporation (HRDF)
HRD Corp. is a government agency under the Ministry of Human Resources which is currently known as Pembangunan Sumber Manusia Berhad Act 2001 (PSMB).
PSMB Act 2001 aims:
To provide for the imposition and collection of a HRD levy for the purpose of:
✔Promoting the training and development of employees,
✔apprentices and trainees,
✔the establishment and the administration of the Fund by the Corporation and
✔for matters connected therewith.
In line with their vision, HRD Corp provides training and up-skilling interventions to key industries in Malaysia to keep up with the fast-evolving business landscape and their individual company aspirations.
Based on PSMB Act 2001, an employer will be convicted for not registering with HRD Corp may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both.
Companies with 10 or more Malaysian employees are mandatory to register, while a company with 5 to 9 Malaysian employees are optional.
Employers within the scope of the Act are required to pay a levy of 1% of the total company payroll into a Fund on a monthly basis.
HRD levy = HRD levy % x (Basic Salary + Fixed Allowances)
HRDF CUSTOMER JOURNEY FOR NEW EMPLOYER:
STEP 1: Registration
(Process will take within 7 working days)
1. Employer to submit Form 1 and attach supporting documents such as business license/ company’s registration documents/Form 9/ Section 17/ Section 14 (superform)/ latest EPF statement/ company profile/ audited annual report
2. Contribution of levy subject to Malaysian employees only.
3. Approval letter will be sent via email followed by User ID and password to login the E-Tris system
Onboarding Session
A briefing session will be held to guide potential or new HRDF registered employers on the registration requirements, benefits/ added value to the company, HRDF’s offerings, government incentives
STEP 2: Levy Payment
(Levy payment to be made no later that 15th date of the month)
1. Upon registration approval, the email notification will state the liability date for the levy payment
2. Payment must be made via eTRiS system and Form 2 e-slip shall be generated
3. Payment method: FPX, JOMPAY or manual payment via bank counter
Personalized Engagement Session
A focused sharing session will be held for the registered employers on HRDF’s products and services as well as collaboration programmes based on various sectors’ requirements in closing the skills and knowledge gap of Malaysian employees
STEP 3: Grant Application
1. Newly registered employer can apply Grant Application after contributing at least one month of levy
2. Employer must apply the grant at least 7 days before the commencement of training
3. Approval must be obtained before the training commencement’s date
STEP 5: Claim Application
1. Claim can be made one day after the approval of grants and training completion
2. e-Disbursement system can be assessed/ registered via eTRiS
3. Upon claim approval, the payment will be reimbursed to the employer’s account
4. Training claims must be submitted within six months after training completion
Employer’s Perspective
• SMEs find it hard to release their workers to attend training programs – there is no one to take over the absent worker’s duties.
• The employer in the small company fear the employees will leave once they have improved their level of skill and knowledge (waste of resources).
• Solution to this is that to require employees to sign an agreement that they will not leave the company for an agreed period after the completion of the program, failing which they will have to reimburse the employer for the cost of the training.
What happen if companies does not train its employees
1. Costs of compensation and time consuming to handle duties (to attend latest task demands)
2. Costs of wasted materials, sales and even customers lost due to mistakes made by untrained employees.
3. Management time cost taken to undo the mistakes made by the untrained employees.
4. Lowered morale, leading to higher turnover, among team members who are demotivated by working with an untrained employee.
5. Accident-related costs; it is well-documented that untrained workers tend to have
more accidents.
6. Higher turnover leading to recruitment costs because employees feel they have no prospects of further development.
CHAPTER 7: PERFOMANCE EVALUATION
1. Introduction
An employee performance management system
is to ensure that every employee works in a manner which is aligned with
organizational goals and which ensures that the employee reaches his maximum
potential on the job.
2. HR
system related to performance management
-
Recruitment of workers: only workers with
the right attitudes and abilities can perform well
-
Training: ensures employees has the skills
and knowledge they need to do a good job
-
Compensation and reward: encourage workers
to continue perform well
3. HRM
specialist with assistance from external consultant
-
Design the system
-
Introduce the system
-
Train managers how to implement
performance management system
-
Ensure manager submit performance
management appraisal marks and comments in timely manner
-
Ensure performance management
documentation kept in safe manner
-
Evaluate effectiveness of system and
update from time to time
4. Benefits
of employee performance management and appraisal system
-
Encourage quality performance by rewarding
those who do well
-
Improve current performance by giving
workers feedback
-
Identify training needs
-
Initiate fair disciplinary proceedings
5. Components
of a performance management system
▪ The preparation of
the organizational plans, including the setting of objectives which are
established for all levels down to the individual worker.
▪ Implementation of
the work by the individual worker, accompanied by appropriate forms of
monitoring by the worker’s manager or supervisor.
▪ Appraisal of the
work of the individual workers.
▪ Follow-up action
taken after the appraisal.
6. Performance
management
7. Design
an appraisal system
-
Integrated into performance management
system
-
Receive top management support
-
Customized to the needs of organization
-
Acceptable and understandable
-
Reliable and unbiased as far as possible
8. Bias
in performance appraisals
-
Recency effect: evaluation based on work
performed most recently
-
Halo effect: evaluator allows single
prominent characteristic of employee to influence judgement on each separate
item in performance appraisal. Opposite: horn effect
-
Central tendency: tendency for
raters/managers to evaluate most of employees as ‘average’
-
Prejudice and stereotyping: negative
opinions about particular group pf people -racial, religious, sex, age
-
Fatigue: blur the evaluator’s judgement
9.
Parties
involved in performance appraisals
10. Frequency
of appraisals
-
The length of the probationary period will
depend on the level of the job. One to three months is normal for machine
operator while for executive job, six months to a year might be the usual
period.
-
Towards the end of the probationary
period, the workers will be appraised by their superior and a decision will be
made whether to offer the employee permanent employment.
-
Majority companies do annual appraisals.
-
Alternatively, performance can be
evaluated every six months or even on a quarterly basis.
-
Formal appraisals need to be conducted:
✔ Before a new employee
completes a probationary period.
✔ After an employee is
promoted.
✔ If the quality of an
employee’s performance is declining and he has been warned to improve.
✔ On a regular basis
11. Appraisal
method
-
Comparative procedures
o
Ranked or listed in order from the best to
the weakest performer.
o
This ranking tied to the distribution of
rewards.
o
The top performer in the group receives
the highest financial rewards, whether bonus or merit increment.
o
Do not provide any useful information
about individual workers, their strengths or their weaknesses.
-
Trait rating scales
o
Can be used to measure personality traits,
behaviours or output.
o
Focus on attributes such as helpfulness,
dependability and cooperation with others.
o Typical
job-related factors are quantity of work, quality of work, attendance and
punctuality.
-
Essay technique
o
Evaluator prepares a written statement
describing an individual’s strengths, weaknesses, and past performance.
o
Appraisers may be asked to write down
answers to certain open-ended questions about the performance of their
subordinates.
o
This requires effort on the part of
supervisor to find the right words to describe the subordinate.
o
Managers must be encouraged to write very
specific comments rather than general phrases which are not helpful to the
employee.
12. Implementing
an appraisal system
-
Workers understand the system and aware of
KPI which will affect their appraisal rating
-
All managers trained in how to implement
appraisal system -interview/discussion
13. The
appraisal interviews
-
The manager and their subordinate must sit
together to review the subordinate’s past performance, set goals for next time
period, and discuss how the manager can help the subordinate overcome any
problems he or she facing in work.
-
An appraisal discussion must be part of an
ongoing program of counselling and coaching subordinates.
-
The appraisal system must be integrated
with the training and development program of the organization.
-
The purposes:
1. To give feedback to the employee where
he or she needs to be made aware of their strengths and weaknesses.
2. Goals will be negotiated with the subordinate.
3. Help will be given
with actions plans.
4. Counselling will be
given.
-
Typical structure of appraisal discussion:
◼
Opening
▪ Remind employee of
purpose of discussion.
▪ Welcome input from
employee.
◼
Begin Discussion
▪ Discuss employee’s
self-evaluation.
▪ Reach agreement on
achievement in time period under discussion.
▪ Set objectives for next
time period.
▪ Discuss action plan to
overcome weaknesses, if any.
14. Counselling
employees with problems
◼
Managers are called upon to counsel employees in a variety situation, including
appraisal discussions such as:
❑ Disciplinary interviews.
❑ Retrenchment exercises.
❑ Career development interviews.
❑ Pre-retirement programs.
◼
Helping employees perform satisfactorily may require a combination of:
❑ Non-directive counselling.
❑ Advice giving.
❑ Information giving.
❑ Teaching and coaching
15. Follow
up action
· If
the subordinate has performed very well, he should be rewarded.
· Set
objectives for next time period
· Provide
retraining
·
Institute disciplinary action
16. Dismissal
for poor performance
-
Give warnings to the employee
-
Provide assistance so that employee can
improve
-
Give sufficient time for employee to
improve
17. Summary
✔ Organizations have performance management
systems to ensure each and every worker performs the best of his ability.
✔ A performance management system includes
a number of components including the setting of objectives for the individual
worker, training of the worker, monitoring the worker’s performance, appraisal
of the worker’s performance and the taking of appropriate follow-up action
after the worker’s performance has been appraised.
✔ Appraisal systems must be developed which
minimize appraiser bias, as far as possible.
✔ Appraisals must be based on accurate
information about the worker’s performance, which can be obtained from a
variety of sources.
✔ Formal appraisals should be held at least
once a year, although feedback on the worker’s performance must be given to him
or her regularly
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