HHuman uman RResources esources MManagement anagement & Development& Development

May 04, 2005 (Wednesday)May 04, 2005 (Wednesday)Presented By: Tariq SaeedPresented By: Tariq Saeed

ToToPakistan Steel MillsPakistan Steel Mills

Overview Introduction to Human Resource

Management. Evolution & Development of HRM Foundations of HRM Theory & Practice Strategic HRM

Motivation of Employees & Leadership Performance Management

TThe he CConcept oncept OOf f HHRMRMHas evolved through the

Development

of

Management

Thought

process

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

DDefinition efinition OOf f MManagementanagement

Management is classified into four branches in accordance with the type of resources it deals with, i.e.,

Types Of Management

Money (Finance) Finance Management

Material Materials Management

Machine (Technology) Operational Management

Men (Human Resource) Human Resources Management.

The branch ofThe branch of

Management of Management of

The Human ResourcesThe Human Resources

HHuman uman RResource esource MManagementanagement

EEvolution volution OOf f HHuman uman

RResources esources MManagementanagement The Industrial Revolution (1776) The Emergence of Free Collective Bargaining Scientific Management US Civil Services Commission Private Industry’s Approach to Personnel

Management Human Relations Movement The Behavioral Sciences

Development Of HRMPioneer Work

Behavioral Science Movement

Organizational Development Movement

The Corporate Culture Cult

The Art Of Japanese Management

Peter Drucker 1950Douglas Mcgreger

Maslows HierarchyOf Needs 1960 1960 - 1970

1970 - 1980

1980 - 1985

Growth Of Human Resources

Management

File Maintenance Stage Government Accountability Stage Organizational Accountability Stage Strategic Partner-ship Stage

Stage 1

Stage 2

Stage 3

Stage 4

File Maintenance Government

Accountability Organizational Accountability Strategic

Partner

Change From Personnel To HRM

From personnel department to HRM department. A change in approach and a change in name. Treating seriously the issues of attracting

developing motivating people and to utilize them effectively.

The organizations now rate high on development of following: personnel and HRM policies systems, practices Agreements consistent with the corporate strategy

R e c ru t ie m nt Se le c t ion W a ge s & Sa la ry A dmin is t ra t ion

C o m pe ns a t io n & B e ne fi ts

E m p lo ye ee R e la t ion E m p lo ye e T ra in ing

H e a lth & S e fe ty E m p lo ye e De ve lo pm e nt

M a na ge m e nt De ve lopm e nt O rga n iza t io na l De ve lo pm e nt

R e s ea rc h O rga n izt io na l C o m m un ic a t ion

C ha nge M ana gem e nt O rga n iza t io na l B e ha vio ur

B e ne fi ts & S e rvic es I ndus t r ia l P s yc ho lo gy

L e ga l R egu la t io ns H um a n R e la t io ns

S o c io C u ltu ra l P ub lic R e la t ion

E X P E R S O N N E L DE P A R T M E N T

N o w H R DE P A R T M E N T

“Human Resource Management is concerned

with the problems, organizations face at all

levels of the organization”.

“These activities undertaken by the

organizations are the means by which they

assure themselves of A long term supply of

people with needed competencies and required

levels of loyalty and commitment ”. ( “Professor Michael

Bear”)

What Is HRM Concerned About?

Definition Of The Functions

Of HRM

Human Resource Management is the process of acquiring, training, appraising, and compensating, retaining employees and attending to their labor relations, health and safety, and fairness concerns.

Present Concept Of HRMHuman resource management in its present form is an approach to the management of people based on four fundamental principles.

• Human resources are the most important assets of an organization. Their Management is the key to its success.

• Success is most likely if the personnel policies and procedures are closely linked with, objectives and strategic plans.

• The corporate culture and values, organizational climate and managerial behavior culture influences the achievement of excellence. This culture be managed.

• HRM is concerned with integration. Getting all the members of the organization involved in working together with a common sense.

HRM Concept HRM involves all the management decisions and

actions that affect the nature of the relationship between the organization and employees i.e., Its Human Resources.

It communicates the instrumental values about people and the notion that people no less than, physical plans and financial resources may be viewed and managed as assets.

The most important implication of this approach is the development of trust between employees, managers and unions

HRM Concept Human Resource Management is the responsibility of all

those who manage people. It is the management concerned with people at work and

with their relationship within an enterprise. It applies to all fields of employment. It aims at achieving both efficiency and justice. It seeks to brings together and develop into an effective

organization, all the people of an enterprise, to make there best contribution to its success both as an individual and as member of working group.

It seeks to provide fair terms and conditions of employment and satisfying work for the employed.

– Three basic traditions. Personnel Administration. Labor Relations. Organizational Development.

– Changes in basic values of society.– Fundamental shift in ideology to the concern for

the whole and not a part of community.– Concern with the rights of the managed not just

the managers.– A shift towards greater concern for the systems of

the organization.

Contd..

Emerging Trends In HRM

– Employee involvement and union-management collaboration.

– To identify problems and develop processes.– Competence and commitment issues given

attention.– Traditional control on information flow giving way

to more openness to employees and increase communications

– Shift from short term perspective to long term perspective to problems and their solutions

– Increased emphasis on training and development activities, performance appraisal and improvement processes.

Contd..

– A concern for the outcomes not just the role and policies

– Flexibility in application of HR policies to individuals and the business

– Flexibility in control at the top to a more participative and collaborative management

– Willingness to talk about the problems in organization

– Change in attitudes towards conflicts– HRM concerned with the groups of

shareholders, employees, the union and the government

HRM People Functions

Include:

Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and

benefits

Performance Management

Employees Communications

Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor

relations

HRM Is Important to All Managers.

Don’t Let These Happen In Your Areas!

The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices

Line And Staff Aspects Of HRM

Authority Making decisions Directing work Giving orders

Line Managers Accomplishing goals

Staff Managers Assisting and advising line

managers

Definition

Definition

Line Manager’s HRM Jobs

The right person Orientation Training Performance Creativity Working

relationships

Policies and procedures

Labor costs Development Morale Protecting

Staff Manager’s HRM Jobs

Line authority Implied authority Functional control Employee advocacy

Activities Which Constitutes HRM Staffing. Retention. Development. Adjustment. Managing Change. Together these activities constitutes the

HRM System.

HRM ActivitiesAll these activities are the special responsibilities of HR Department but these are also at the core of every managers job throughout an organization. The line managers have authority and have considerable impact on the way workers actually behave.

These Activities Can Be

Carried Out At: Individual levels. Work teams. Departmental levels. Organizational levels

Staffing Identifying work requirements within

an organization. Determining the numbers of people

and the skills mix necessary for the the work.

Recruiting, selecting and promoting qualified candidates.

Retention Rewarding employees’ for

performing their jobs effectively. Ensuring harmonious working

relations between employees and managers.

Maintaining a safe and healthy work environment.

Development A function whose objectives is to

preserve and enhance employees’

competence in their jobs through

improving their knowledge, skills,

abilities and other characteristics;

(“COMPETENCIES”)

Adjustment Comprises activities intended to maintain compliance with the organization's HR policies (e.g. through discipline) and business strategies (e.g. cost leadership)

Managing ChangeAn ongoing process whose objective is to enhance the ability of an organization to anticipate and respond to development in its external and internal environments and to enable employees at all levels to cope with the changes.

Change In Recruiting Strategy

A change in recruiting strategy in accordance with the expected job requirements means: Develop selection procedure that will identify the kind of

competencies required for future employees. Change in compensation policies. New incentive systems be developed. Offer new training & development programs. Assessment procedures will be changed. New rewards procedures. Discharge, promote or transfer some employees. Provide mechanism to remaining employees to cope with

change.

Objectives Of HRM DepartmentBroad objective to optimize the usefulness of all workers in an

organization

Special objective To help line managers manage those workers

more effectively.The HR department accomplishes this special objective through policy initiation and formulation, advice, service and control in resonance with line managers.

Thus the HR responsibilities are shared by the hr department and line managers.

Special Objectives

The special objective is accomplished through:Policy incitation and formulation.Advise.Service.Control in close coordination with

line managers.

How Do Line Managers’ Share These Activities

Activity Line Managers Responsibility HR Department Responsibility

STAFFING Providing data for job analysis and minimum qualifications; integrating strategic plans with HR Plans at the unite level, interviewing candidates, integrating information collected y the HR dept., making final decisions on entry level hires and promotions.

Job analysis, HR planning, recruitment, compliance with civil rights laws and regulations; application blanks, written tests, performance tests, interview, background investigations, reference checks and physical examinations.

RETENTION Fair treatment of employees, open communication, face to face resolution of conflict, promotion of teamwork, respect for the dignity of each individual, pay increase base on merit.

Compensation and benefits, employees’ relations, health and safety and employee services.

DEVELOPMENT On-the-job training, job enrichment, coaching, applied motivational strategies, performance feedback to subordinates.

Development of legally sound performance management system, morale surveys, technical training, management and organization development, career planning, counseling and HR research.

ADJUSTMENT Discipline, discharge, layoffs and transfers. Investigation of employee complaints, outplacement services and retirement counseling.

MANAGING CHANGE

Provide a vision of where the company or unit is going & the resources to make the vision a reality.

Provide expertise to facilitate the overall process of managing change.

HR Provides Expertise : Line Managers Use it to Manage People Effectively

ACTIVITY How Done FUNCTIONS

Staffing Getting people.Employees.

Employment.

Training & Development

Preparing them.Maximizing potential.

HRD

Motivation Stimulating them. Compensation & Benefits.

Maintenance Keeping them. Employee Relations.

Basic Functions

The HRM ProcessOrganization

Culture

Organization Culture

Strategic

Objectives

Strategic

Objectives EnvironmentEnvironment

HR Strategy

HR Strategy

Organizational structure

Organizational structure

OutputsOutputs

Performance management

Training and development

Reward management

Employee relations

Performance management

Training and development

Reward management

Employee relations

Job analysis recruitment

Job analysis recruitment

Strategic Human Resources

Management Strategic HRM mean getting everybody from top of

the organization to the bottom doing things to implement the strategy of business effectively.

To use people most wisely with respect to the strategic needs of the organization.

This needs an integrative frame work that systematically links HR activities with business needs. (Systems Approach)

Development of a map and time line to ensure alignment between HR strategy and business strategy.

Strategic HRM Activities

HR Philosophy HR Policies HR Programs HR Practices HR Processes

Human Resources Philosophy

Or HR Contribution in Company Growth & Success

A firm’s HR philosophy is generally a broad statement about how it regards its people, the role they play in the overall success of a business, and how they are to be treated and managed. Empowering people to drive to business from the closest

point to the market. Developing the skills to be the best in the business. Building career opportunities. Building teamwork. Helping people succeed by the building an environment with

high integrity, strong and consistent values, and continuous improvement.

Changing environment towards effective time management, cost consciousness and improving interaction for increasing productivity by proactive support to line managers.

ORGANIZATIONAL STRATEGY

Initiates the process of identifying strategic business needs and provides specific opportunities to them

ORGANIZATIONAL STRATEGY

Initiates the process of identifying strategic business needs and provides specific opportunities to them

STRATEGIC BUSINESS NEEDS

Expressed in mission or vision statements and translated into strategic business objectives

STRATEGIC BUSINESS NEEDS

Expressed in mission or vision statements and translated into strategic business objectives

INTERNAL CHARACTERISTICS

INTERNAL CHARACTERISTICS

EXTERNAL CHARACTERISTICS

EXTERNAL CHARACTERISTICS

STRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIESSTRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIES

•Human Resources Philosophy expressed in statements defining business values and culture.

•Human Resources Policies expressed as shared values (guidelines).

•Human Resources Programs articulated as Human Resources strategic.

•Human Resources Practices for leadership, managerial and operational roles.

•Human Resources processes for the formulation and implementation of other activities.

•Express how to treat and value people.

•Establishes guidelines for action on people related business issues and HR program.

•Coordinates efforts to facilitate change to address major people related business issues.

•Motivates needed role behaviors.

•Defines how these activities are carried out

Roles Of HR Manager Business person Shaper of change Consultant to the organization and partner to line

managers Strategy formulator and implementer TALENT MANAGER (I.E network with

professional colleagues, including recruiters,line managers, and other HR professionals)

ASSET MANAGER AND COST CONTROLLER (Based on understanding financial and accounting procedures.)

Strategic Planning and Trends

Strategy is the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

Definition

Definition

Strategic Planning 101There are three levels of strategic planning as shown below

Corporate Strategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

FunctionalStrategies

The Strategic Planning Process

SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats

Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces

Basic strategic trends Globalization Technological advances The nature of work The workforce

HR’s Evolving Role

Protector and Screener

Strategic Partner

Change Agent

Strategic HRM

Strategic Human Resource Management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility.

Definition

Definition

Clarify the businessstrategy

Realign the HR functions and keypeople practices

Create needed competenciesand behaviors

Realization of businessstrategies and results

Evaluate and refine

How HR Helps Strategy Execution

Functional strategies should support competitive strategies

Value chain analysis Outsourcing Strategy Formulation

How HR Helps Form Strategy

Formation of a company’s strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses

Environmental scanning

The Value Chain Approach

HR And Technology Basic HR systems demand paperwork

70% of HR’s employees time = paperwork

Off the shelf forms from Office Depot/Officemax

Online forms

Human Resource Information Systems (HRIS)

HR on the Internet

HR Means Performance

Can HR have a measurable impact on a company’s bottom line?

Better HRM translates into improved employee attitudes and motivation (e.g., working at home)

Well run HR programs drive employee commitment

TOYOTA

Is There a “One Best HR Way”?

Follow a company’s operating and strategic initiatives

All companies can benefit from Profit sharing programs Results oriented appraisals Employment security Foster informal relationships- promote

worldwide communications Develop global executives

Current Pressures On HRM Increase international competition Increasing complexity of business and size of organizations Slower growth with receiving advancement opportunity to

employees Increased education & awareness of the workforce Changing personal / work force values More concern with career and life satisfaction Changing workforce / mix demography Expectations / satisfaction of employers Productivity improvement needs Greater involvement of government in HR development and

practices

Challenges Faced By HR Managers

Changing Mix Of Work Force Changing Personal Values Expectations Of Employees Levels Of Productivity Demands And Government

Regulation

Strategic Objectives For HRM

Design strategy ensuring fuller utilization of human resources

Establish and maintain a self-respecting relationship among all employees

Enable each person to make his/her maximum personal contribution to the effective working of the organization by creating an appropriate and conducive work climate

Bring about maximum individual development of personnel through renewed thrust on employees education and training

Make effort to recognize and satisfy individual and group need for providing higher job satisfaction

Maintain a high morale and better human relations to win employee’s commitment

How To Achieve Objectives? Answer to this question by creating a culture in the organization which is

employee-oriented. The factors responsible for fostering good human relations and higher productivity are as follows: Management’s genuine belief that employees love work (create proper

environment) Utilizing employee’s higher skills through their involvement Recognition to employee’s informal groups Humanize jobs in which employees are called not by labels but by names Employee- orientated supervision, recognizing human dignity Two-way communication Feedback and counseling Ability based leadership Employee welfare and good quality of work life Equitable monetary benefits.

Critical HR Processes

Training And Development Policies Implementation Systems Update And Procedures

Improvement Practices And Processes Development Competencies (KSAs) Development Talent Management Identification Of Future HR Requirement Leadership Development

TQM

HRM In Pakistan HRM in Pakistani

Environment

Current Trends

of HRM in Pakistan

The Changing Role of HRYesterday Today Tomorrow

Success factors Business judgment intuition

Information strategic plan mission

Flexibility agility speed

Organizational style

Paternalistic Professional Empowered learning vibrant

Employees considered as..

Hungry, naked & defenseless creatures

Thinking and rational beings

Fully evolved completely satisfied, mature human beings

Motivational methods

Driving people through basic needs

Driving people through social and intellectual needs

People drive themselves

Role of HR Providing people with food, clothing and shelter

Motivate by providing effective & fair appraisals systems

As a change agent

As innovator

As a strategic partner

Globalization. Technology. Change. Knowledge Capital. Speed in Market. Cost Control. Credibility.

People Skills. Understanding the

Business of Business.

A Consultative Approach.

Comfort with Change.

Visioning.

Business Trends & HR

Competencies For Our Times

HRM & Philosophy Of Islam

Authority and responsibility. Participative management. Rewards and performance Equal opportunities concept. Leadership Evaluation & improvement. Commitment & motivation Balanced approval

Motivation of Employees & Leadership

WWhat hat IIs s MMotive?otive?• Motive is an inner force that moves a

person to behave in a certain way. • Motives are the mainsprings of action in

people.

The term motive implies the action to satisfy a need.

MMotivesotivesMotives are the “WHYS” of behavior. They arouse and Motives are the “WHYS” of behavior. They arouse and maintain activity and determine the general direction of maintain activity and determine the general direction of the behavior of an individual.the behavior of an individual.

Motives are sometime defined as needs, wants, drives and Motives are sometime defined as needs, wants, drives and impulses within the individual. Motives are directed impulses within the individual. Motives are directed towards goals which may be conscious or subconscious towards goals which may be conscious or subconscious

MMotivationotivationMotivation is a general term applying to the entire class of drives, desires needs, wishes and similar forces.

To say that managers motivate their subordinates is to say that they do those things which they hope will satisfy those drives and desires and induce the subordinates to act in a desired manner.

Motivation is a complex subject. It involves the unique feelings and thoughts and past experiences of each of us as we share a variety of relationships within and outside the organizations.

WWhy hy MMotivation?otivation?To initiate our followers to reach our objectives, we must hold some reward once the objective is attained.

What rewards do people seek? The answer is that they seek to fulfill their wants and needs.

HHuman uman NNeedseeds• PRIMARY NEEDS: Physiological requirements

for water, air, food, sleep & shelter

• SECONDARY NEEDS• Self Esteem

• Status

• Affiliation With Others

• Affection (Giving)

• Accomplishment

• Self Assertion

NEEDS(Physiological/Physical)

DRIVES/BEHAVIOR

GOALS/INCENTIVES

NEEDS DRIVES GOALS

MMotive otive NNeeds & eeds & WWantsants

• The term motive, need, wants and drives are used interchange ably.

• Motivation can also be termed as the willingness to expand energy, achieve a goal or a reward.

NEEDRespect from others.

BEHAVIORoutstanding work on the job.

REWARDpraise, pay increase, status symbols.

MMotivatorotivatorMotivator is something that influences an individual behavior. It makes a difference in what a person will do.

Motivators are things that induce a person to perform.

Motivators are the identified rewards or incentives that sharpen the drive to satisfy the wants.

MMotivation otivation AAnd nd SSatisfactionatisfaction

• Motivation refers to the drive and effort to satisfy a want or goal.

• When a want is satisfied we experienced the contentment which is called Satisfaction.

• Motivation implies a drive towards an outcome, and satisfaction is the outcome experienced.

Significant Motivation Significant Motivation

Theories Theories

1. 1. The Carrot And The Stick TheoryThe Carrot And The Stick Theory

2. 2. Hierarchy of Needs TheoryHierarchy of Needs Theory

BASIC PHYSIOLOGICAL NEEDS

SAFETY/SECURITY NEEDS

LOVE/BELONGING NEEDS

ESTEEM NEEDS

SELF-ACTUALIZATION

HIERARCHY OF NEEDSHIERARCHY OF NEEDS

Esteem Needs

Affiliation or acceptance needs

Need for self-

actualization

Security or Safety needs

Physiological needs

A Hierarchy Of Work MotivationA Hierarchy Of Work Motivation

BASIC PHYSICAL NEEDSFood, clothing, shelter

SAFETY & SECURITYSeniority plans, union health insurance, employee

assistance plans, severance pay, pension etc

LOVE & BELONGINGFormal and informal work groups

ESTEEMTitles, status symbols, promotions,

banquets

SELF-ACTUALIZATIONPersonal growth, realization of

potential

3 .McGregor’s Theory of Motivation3 .McGregor’s Theory of Motivation

THEORY “X”

THEORY “Y”

4.Herzberg's Theory of Motivation (Two 4.Herzberg's Theory of Motivation (Two Factor Theory)Factor Theory)

According to this theory, motivation is largely affected by two factors, namely: The Hygiene Factors Or The

Dissatisfies.The Motivators Or The Satisfiers.

The Hygiene Factors Or The Hygiene Factors Or The DissatisfiersThe Dissatisfiers

Leadership Relationship With Peers, Superiors and

Subordinates Working Conditions Salary Company Policy and Administration, etc

The Motivator Or The SatisfiersThe Motivator Or The Satisfiers

These are factors, which give a sense of satisfaction to the employees and result in motivating them. Achievement. Recognition. Advancement. Responsibility. Challenging work.

Herzberg’s Two Factor TheoryHerzberg’s Two Factor Theory

• Achievement.• Recognition.• Challenging work.• Responsibility.• Advancement.• Challenging job.

• Company Policies.• Supervision.• Working conditions.• Interpersonal

relations.• Salary /status, • Security.

MOTIVATOR HYGIENE FACTOR

The Job Itself Environment

Vroom’s ExVroom’s Expectancy Theory pectancy Theory

People will be motivated to do things to reach a goal if they believe in the worth of their goal and if they can see that what they do will help them in achieving it. In a sense a particular action will lead to a desire

ForceForce == Valance X ExpectancyValance X Expectancy

Force = Strength of a persons motivation.

Valence = Strength of individuals performance for an outcome.

Expectancy = The probability that a particular action will lead to a desired outcome.

Vroom’s ExVroom’s Expectancy Theorypectancy Theory

Recognizes the importance of: Needs and motivation The harmony of objectives. Expectation of the rewards for the work

done. Perception of value varies. Managers job to design environment.

McCelland's Theory of McCelland's Theory of NeedsNeedsThree kinds of basic motivation needs: Need for Power (N Pwrs) Need for Achievement (N Ach) Need for Affiliation (N Aff)

Portar & Lowler Motivation Model

Value of Rewards

Value of Rewards

Ability to do specified task

Ability to do specified task

Perception of task required

Perception of task required

Effort Effort Performance accomplishment

Performance accomplishment

Perceived

effort – review probability

Perceived

effort – review probability

Perceived equitable rewards

Perceived equitable rewards

Intrinsic rewards

Intrinsic rewards SatisfactionSatisfaction

Exitricis rewards

Exitricis rewards

Equity TheoryEquity Theory

OUTCOMES BY A PERSON = OUTCOMES BY ANOTHER PERSON

INPUTS BY A PERSON INPUTS BY ANOTHER PERSON

Reinforcement TheoryReinforcement Theory

Individuals can be motivated by proper design of their work environment and praise for their performance and that punishment for poor performance produces negative results.

AApplication pplication OOf f MMotivation otivation

TTheoriesheoriesApproaches to motivation:• Hierarchy of Needs.• Motivation Hygiene Approach.• Intrinsic and Extrinsic Motivation

Approach.• Achievement Motivation.• Behavior Modification.• Expectancy Model.

SSpecial pecial MMotivational otivational TTechniquesechniques

• Power & Achievement.• Money as a Motivator.• Competition.• Job design & workflow.• Integration of goals.• Participation.• Quality of work life (QWL)

1. 1. Understand Individual Needs And DesiresUnderstand Individual Needs And Desires

2. 2. Acknowledge And Respect Their Acknowledge And Respect Their Personal WorthPersonal Worth

““Treat a man as he is, and Treat a man as he is, and he will remain as he is; he will remain as he is; treat a man as he can and treat a man as he can and should be, and he will should be, and he will become as he can and become as he can and should be”should be” ….. Goethe….. Goethe

3. Recognize And Appreciate Their 3. Recognize And Appreciate Their EffortsEfforts

"Forget their mistakes and zero in on all smart things that they do right. Praise them and they’ll do more things right and

discover talents and abilities they never realized they had”…….. Mary Kay Ash

4.4. Involve Them And Involve Them And Encourage ParticipationEncourage Participation

5.Seek Their Advice5.Seek Their Advice

6.6.Make Them TeachersMake Them Teachers

7.Delegating Star Projects7.Delegating Star Projects

SSelf elf MMotivationotivation Set a goal for yourself Supplement your long-term objectives with

short-term goals and specific actions. Learn a challenging new task each year. Make your job a different one. Set

improvement objectives for your position. Develop an area of expertise. Build on your

strengths, or develop one of your weaknesses into a strength.

Give yourself feedback and reward yourself.

LLeadership eadership SSkillskills

Importance Of Leadership

You can take away my factories,

burn up my buildings,

but give me my people,

and I’ll build the business right back again.

(Henry Ford)

Definition of Leadership

Leadership is defined as the art or process of

influencing people so that they will strive willingly

and enthusiastically towards the achievement

of group goals.

Leadership & Managership

Differences Between a Manager and a Leader

MANAGERMANAGER LEADERLEADERAdministers Innovates

Assigns goals and objectives Develops a vision

Maintain power Empowers people

Focuses on systems and structure

Focuses on developing people

Relies on control Inspire trust and motivate

Short range view Long range view

Asks “how” and “when” Asks “what and why”

Eye on the bottom line. Eye on horizon

Imitates Creates

Accepts status quo. Challenges status quo

Demand compliance Develops commitment

Does things right Does the right things

Leadership Is… A relationship… not a formal

position. A behavior … not a function.

Ingredients of Leadership

Power. Fundamental understanding of people

and their motivation. Ability to inspire followers to apply their

full capabilities to a project. The style of the leader and the climate

he/she develops.

Traits Approach To Leadership

• Physical Traits.• Intelligence and Ability Traits.• Task Related Characteristics.• Social Characteristics.

Key Leadership Traits

• Drive• Motivation• Honesty• Integrity• Cognitive ability• Understanding of Business• Impact of creativity• Flexibility• Charisma on Leadership effectiveness.

Leadership Behavior & Leadership Behavior & StylesStyles

Leadership Styles

Autocratic leaderAutocratic leader

FollowerFollower FollowerFollowerFollowerFollower

Democratic or participative

leader

Democratic or participative

leader

FollowerFollower FollowerFollowerFollowerFollower

Free-rein leader

FollowerFollower FollowerFollower FollowerFollower

SStyles tyles BBased ased OOn n UUse se OOf f AAuthorityuthority

AUTOCRATICAUTOCRATICLEADERLEADER

FOLLOWERFOLLOWER FOLLOWERFOLLOWER FOLLOWERFOLLOWER

SStyles tyles BBased ased OOn n UUse se OOf f AAuthorityuthority

DEMOCRATIC /DEMOCRATIC /PATICIPATIVEPATICIPATIVE

LEADERLEADER

FOLLOWERFOLLOWER FOLLOWERFOLLOWER FOLLOWERFOLLOWER

SStyles tyles BBased ased OOn n UUse se OOf f AAuthorityuthority

FREE – REIN FREE – REIN LEADERLEADER

FOLLOWERFOLLOWER FOLLOWERFOLLOWER FOLLOWERFOLLOWER

Theories of Leadership

Leadership As A Continuum. Situation Or Contingency Approach. Path Goal Approach. Likert’s Four Systems of

Management

LLeadership eadership AAs s AA CContinuumontinuum

• Forces operating in a manager’s Forces operating in a manager’s

personalitypersonality

• Forces in sub-ordinates that will affect Forces in sub-ordinates that will affect

manager’s behaviormanager’s behavior

• Forces in a situationForces in a situation

CContingency ontingency TTheory heory OOf f

LLeadershipeadership

People become leaders not only People become leaders not only

because of the attributes of their because of the attributes of their

personalities but also because of personalities but also because of

various situational factors and the various situational factors and the

interactions between leaders and group interactions between leaders and group

membersmembers

CCritical ritical DDimensions imensions OOf f TThe he

LLeadership eadership SSituationituation

• Position PowerPosition Power

• Task StructureTask Structure

• Leader – Member RelationsLeader – Member Relations

PPath ath GGoal oal TTheoryheory

The main function of the leader The main function of the leader

is to clarify and set goals with is to clarify and set goals with

sub-ordinates, help them find sub-ordinates, help them find

the best path for achieving the the best path for achieving the

goals and remove obstaclesgoals and remove obstacles

Likert’s Four Systems Of Likert’s Four Systems Of ManagementManagement

System 1System 1: exploitive – exploitive – authoritativeauthoritative

System 2System 2 : benevolent – benevolent – authoritativeauthoritative

System 3System 3 : consultativeconsultative

System 4System 4 : participative - participative - groupgroup

Goal Approach To Leadership Goal Approach To Leadership EffectivenessEffectiveness

EffectiveEffectiveOrganizationOrganization

EffectiveEffectiveOrganizationOrganization

LeaderLeaderBehaviorBehavior

LeaderLeaderBehaviorBehavior

MotivatedMotivatedSubordinatesSubordinates

MotivatedMotivatedSubordinatesSubordinates

FunctionsFunctions Of A LeaderOf A Leader

FunctionsFunctions Of A LeaderOf A Leader

CharacteristicsCharacteristicsOfOf

SubordinateSubordinate

CharacteristicsCharacteristicsOfOf

SubordinateSubordinateWorkWork

EnvironmentEnvironment

WorkWorkEnvironmentEnvironment

The Managerial Grid

The grid has two dimension: 1. Concern for production.2. Concern for people.

The Managerial Grid

Concern for production

Co

nce

rn f

or

peo

ple

1.1 1.1 MIN WORK MIN WORK

MIN MORALEMIN MORALE

9.19.1MAX WORKMAX WORK

MIN MORALEMIN MORALE

5.55.5WORK AND MORALE WORK AND MORALE

AT BALANCEAT BALANCE

1.91.9MIN WORKMIN WORK

MAX MORALEMAX MORALE

9.99.9MAX WORKMAX WORK

MAX MORALEMAX MORALE

LOWLOW 1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7 8 9

LOWLOW

HIGHHIGH

HIGHHIGH

Can Leadership Be Taught?

• 80 percent of leadership growth derives from experience on the job.

• 20 percent can be acquired through training and study.

• On-the-job training and classroom training must go hand in hand.

Performance Management

Performance refers to an employee’s accomplishment of assigned tasks.

Performance

Appraisal

All managers are constantly forming judgments of their subordinates and are in that sense continuously making appraisals.

The term is,however, applied in Human Resource Management to “Formal and systematic assessment made in a prescribed and uniform manner at a certain time”.

Appraisal is the judgement of an employee’s performance in his job, based on considerationsother than productivity alone.

It is length of time during which an employees job performance is observed in order to make a formal report.

Appraisal Period

It is the systematic description of the job-relevant strengths and weaknesses of an individual or a group

Performance Appraisal

Performance AppraisalA Complex and often Misunderstood Process

Performance appraisal is an exercise in observation and judgement, it is a feedback process, and it is an organizational intervention.

It is a measurement process as well as an intensely emotional and human process also.

Performance Management

Performance Management is the total process of observing an employee’s performance in relation to job requirements over a period of time and then making an appraisal of it. This is done by: Clarifying expectations. Setting goals. Providing on-the-job coaching. Storing and recalling information about performance. Counseling & Feedback. Monitoring.

Planning Performance. Managing Performance. Reviewing Performance. Rewarding Performance.

Performance Management Process

Managing performance needs appraisal. It means something very specific, and much too narrow. A process of improvement, which demands continued

attention. Performance appraisal is only a part in the overall PM

process. PM requires a willingness and commitment to focus on

improving performance at all levels . Timely feedback and constant focus of everyone’s attention

on the ultimate objective. We need to break performance appraisal orientation to

performance management.

Performance Management

The Organizational And Human Contexts Of

Performance Appraisal Performance appraisal is almost universal. In our contest not

so well organized. Managers have limited contact with employees outside but we

have no distance. Accuracy in appraisal is less important than motivating and

rewarding the subordinates to most managers. Standards and ratings tend to vary widely and often unfairly Personal values and biases can replace organizational

standards. Sometimes the validity of performance appraisals is reduced

by the supervisor’s resistance to making them. Some supervisors complain that performance appraisal is

pointless paperwork Performance appraisal interfere with more constructive

supervisor -subordinate coaching relationships.

The Process of Performance Management Needs Three Things To Be Done Well

DEFINE PERFORMANCE: Set Goals. Decide How to Measure Accomplishment. Assessment of Process.

FACILITATE PERFORMANCE: Obstacles. Provide Adequate Resources. Careful Selection of Employees.

ENCOURAGE PERFORMANCE:Provide sufficient number of rewards that employees really value and do so in a timely and fair manner

Purposes of Performance Management System

Provide justification for employment decisions. Provide feedback for personal and career

development. Help establish objectives for training programs

after identifying the development needs. Serve as-input for a formal reward and punishment

system. To motivate employees to do better in present job. Used as criteria in test validation. Help diagnose organizational problems.

Purpose of Performance Management System

Employment Decisions

PURPOSES OF

PERFORMANCE APPRAISAL

SYSTEM

Diagnosis of

Organizational

Problems

Employee

Feedback

Objective forTraining

Programs

Criteria in

Test Validation

Diagnosing Organizational Problems

How Done

This is done by identifying training needs in terms of knowledge, skills abilities, and other characteristics to consider as a basis for distinguishing between effective and ineffective performers and using them in other decisions like hiring etc.

Performance Management

NEW JOB REQUIREMENTS

JOB DESCRIPTION

OBJECTIVE

SETTING

PERFORMANCE ASSESSMENT

REVIEW / PLAN UPDATE

PERIODIC REVIEWS

COACHING / FEEDBACK

EMPLOYEE DEVELOPMENT / CAREER PLANNING PLAN

REWARDS & RECONGNITION

How does Performance Management fit into the overall company management process?

Company Strategic Plans

• Sales Projections• Line Expansions• New Products• Facility Plans• Human Resources

Organization Planning• Succession Planning• Organizational and People

Development

Performance Planning

Periodic Reviews- Coaching & Feedback

Performance Evaluation

Rewards & Recognition

Employee Dev/Career Plan

Environmen

Environmen

tt

StyleStyless

Culture

Culture

Values

Values

Performance Management System

The goal of performance management is to improve organizational performance by translating the organization’s strategic plan into individual employee performance planThis Needs a Proper and Integrated PMS

Requirements Of Effective

Appraisal Systems

The Fundamental requirements of any appraisal-system are:• Relevance• Sensitivity• Reliability.• Acceptability• Practicality.

Relationship Of Performance Standards To Job Analysis And Performance Appraisal

Job AnalysisJob Analysis Performance Standards

Performance Standards

PerformanceAppraisal

PerformanceAppraisal

Describes work and personal

requirements of aparticular job

Describes work and personal

requirements of aparticular job

Translate jobrequirements into

levels ofacceptable/

unacceptable performance

Translate jobrequirements into

levels ofacceptable/

unacceptable performance

Describes thejob-relevant

strengths and weaknesses of each individual

Describes thejob-relevant

strengths and weaknesses of each individual

Legal Issues In Performance Appraisal

To avoid legal difficulties, consider taking the following steps: • Conduct a JA and determine job characteristics • Incorporate these characteristics into a rating

system• Train supervisors to use the rating system properly.• Provide performance counseling or corrective

guidance• Formal appeal mechanism , and higher level review. • Document appraisal and reasons for termination

decision

The Strategic Dimension Of Performance

Appraisal Greatest Management Principle: The things that get

rewarded get done well. Short term if rewarded will generate short term

performance. When long term results required then the performance

on longer periods need to be rewarded. Managers may emphasize short or long term objectives

or a combination. Short term objectives - outcome as bottom line results

for current quarter. Long term objectives - increase market share and

securing repeat business. To be most effective, strategic management of Performance must

be linked to the strategies an organization uses to gain competitive advantage eg innovation, speed, quality or cost

control.

Types Of Review Performance Review. Potential Review. Reward Recommendations.

Methods Of Review Ranking Grading Behavior Expectations Open Ended 360 Degree Feedback Multi-Rater.

Alternative Methods OfAppraising Employee Performance

Behavior oriented Rating Method.Relative Rating System.Absolute Rating System

Result orientated Method.

MBOWork and Planning Review

Behavior-oriented

Rating Methods Narrative Essay. Ranking. Paired Comparisons. Forced Distribution. Behavioral Checklist. Critical Incidents. Graphic Rating Scale. Behaviorally Anchored Rating Scales (BARS).

When Should Each Technique Be Used

If objective is to compare employees across raters for important employment decisions (e.g. promotion, merit pay) ,MBO and work planning review should not be used. They are not based on a standardized rating scheme for all employees.

If a BARS is used, diary keeping should be made a part of the process. This will improve the accuracy of the ratings, and it also will help supervisors distinguish between effective and ineffective employees.

If objective performance data are available , MBO is the best strategy to use.

Work planning and review are not as effective as MBO.

When Should Each Technique Be Used

Appraisal methods that are best in a broad organizational sense- BARS and MBO - are the most difficult to use and maintain .

Methods that focus on describing, rather than evaluating , behavior(e.g. BARS, rating scales)produce results that are the most interpretable across raters.

No rating method has been an unqualified success when used as a basis for merit pay or promotional decisions.

When certain statistical corrections are made , the correlation's between scores on alternative rating formats are very high. Hence all the formats measure essentially the same thing.

Popularity of Appraisal Methods

& Their Use

Rating Scales - 51% Essays - 23% MBOs - 17% Other Forms - 9%

Who Should Evaluate Performance

The Immediate Supervisor. Peers. Subordinates. Self-appraisal. Customers Served. Computers. Multi-Raters or 360 Degree Feedback.

Appraisal Errors

COMMON ERRORS:• Leniency.

• Severity.

• Central Tendency.

OTHER ERRORS:• Halo Error

• Contrast Errors

• Recency Error

Secrets Of Effective Appraisal Interviews

Frequent Communication Training in Performance feedback and Appraisal

Interviewing Encourage Subordinate to Prepare Encourage Participation Judge Performance , Not Personality Be Specific, and Be an Active Listener Avoid Destructive Criticism Set Mutually Agreeable Goals Continue to Communicate, and Asses Progress

Toward Goals Regularly Make Organizational Rewards Contingent on

Performance

Impact Of Performance Appraisal On Productivity,

Quality Of Work Life, And The Bottom Line

Performance appraisal is a feedback process. Feedback increases performance by 10 to 30 percent.” Feedback is a fairly inexpensive way to improve productivity;

but, to work effectively, it requires sustained commitment. The cost of failure to provide such feedback may result in the

loss of key professional employees, the continued poor performance of employees who are not meeting performance standards, and a loss of commitment by all employees.

The myth that employees know how they are doing without adequate feedback from management can be an “expensive fantasy”.

Implications For Management Practice

The difficulty of implementing and management of performance appraisal systems.

To improve policy issues for improvement in PMS make “quality of performance appraisal feedback to subordinates” and “development of subordinates” integral parts of every manager’s job description.

Tie rewards to effective performance. Recognize that performance appraisal is a dialogue

involving people and data; both political and interpersonal issues are involved.

No appraisal method is perfect, but with management commitment and employee “buy-in” performance management can be a very useful and powerful tool.

Impact Of National Culture On

Organizational Performance Appraisals Less support for performance appraisal as practiced in

Western cultures More focus on group rather than individual performance Greater willingness to consider nonperformance factors(e.g.

off-the-job behaviors, age) as criteria in appraisal Less willingness to attribute performance levels to the skills

and efforts of particular individuals More open and direct relations between supervisor and

subordinate

An expectation of closer supervisory styles. To forgive, forget and be generous on employee

expectations.

Complexity Of

Performance Management

Performance Management includes issues as: Developmental (feedback) Technical aspects (Design of an appraisal

system) Interpersonal Aspects (Appraisal interviews) Administrative (Pay, Promotions)

This makes it extremely complex.

Linking Performance Management with other key areas

Performance Planning

Performance Feedback & Coaching

Performance Evaluation

Implementation

Skills Gap Analysis Training Needs Assessment

Employee Development Plan

Performance Management System

“Is a means to create and maintain a climate of success in the

organization.” …

Martin Fisher, “Performance Appraisals”

This means a Win-Win relationship with employees

&

Sharing the business success all the way

The Executive Appraisal Paradox

Executive Paradox• Structured performance reviews not liked• Formal review below dignity • Too busy to conduct appraisal.• Autonomy and creativity in executives• Results the only basis for assessing • Comprehensive evaluation impossible via

formal performance appraisal

Answer To The Executive Appraisal

Paradox

A formal, systematic executive appraisal process is a must.

Incorporate formal performance planning. Make performance review and appraisal an

ongoing process. Focus on process as well as outcomes during

the executive review. Be as specific and thorough as possible.

Questions / Answers

Thank You