Executive summary
Exim Bank Limited was established in 1999 under the leadership of Late Mr. Shahjahan Kabir, founder chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream.
This bank starts functioning from 3rd August, 1999 with Mr. Alamgir Kabir, FCA as the advisor and Mr. Mohammad Lakiotullah as the Managing Director. Both of them have long experience in the financial sector of our country. Bangladesh on June 2, 1999 as a banking company under the companies Act 1994. The Bank converted its banking operation into Islamic Shariah from traditional banking operation on 1st July 2004 after obtaining approval from Bangladesh bank. Exim bank went for public for issuing shares in the year 2004. From 2004 Exim bank has launched a number of Shariah based financial products and tried to serve the people of Bangladesh according to the path of Islam.
This report is prepared on the basis of my Three month practical experience at Exim Bank Bangladesh Limited (New Eskaton Branch). The internship program helps me to learn more about the practical situation of a financial institution.
The slogan of Exim bank is “Local bank global network”. They provide modern banking service to their customer. Customers get different service from here. They have special consumer scheme like, Education saving scheme, Super saving (Double t he deposit within 6 year), Multiples saving (10 years deposit scheme), Monthly income scheme, Money Grower ( Monthly Saving Scheme).
Exim bank I have found the task of satisfying the depositor groups and the borrower groups is the first priority here and the bank does this in a way smarter than many others in the industry .Business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship.
Chapter -1
Introduction
1.1 Introduction
Bank is very old institution that is contributing toward the development of any economy and is treated as an important service industry in the modern world. Economic history shows that development has started everywhere with the banking system and its contribution towards financial development of a country is the highest in the initial stage. Modern banks play an important part in promoting economic development of a country.
Bank provides necessary funds for executing various programs in the process of economic development .they collect savings from large masses of people scattered throughout the country, which in the absence of banks would have remained ideal and unproductive, these scattered amounts are collected, pooled together and made available to commerce and industry for meeting the financial requirements.
Bank plays a vital role in the economy by providing means of payment and mobilizing resources. Bank is the most important financial institution in the economic development of a country depends on the development of banking sector. Today’s modern banks are not only providing traditional banking but also expanding the many financials services. In today’s world the life of the people directly are within the arena of banking whether conventional or Islamic banking is not a newer concept in Bangladesh as it has started its operation since 1983, very few people are aware about its operation. But things are changing. Islamic banking is also getting popularity in the country.
Internship program essential for every student, especially for the students of Business Administration, which helps them to know the real life situation, for this reason a student takes the internship program at the last stage of the bachelor’s degree, to launch a career with some practical experience. Against this backdrop , I have competed my three months internship in the Exim Bank Ltd., New Eskaston Branch ,Dhaka , which has helped me a lot to understand the real life situation life situation of banking business.
1.2 Objective of the Report
The main objective of this report is to learn about Human Resources Management practices and policies of EXIM Bank Ltd.
Special objectives are:
To know Human Resources Planning practices of the bank.
To learn about recruiting and selecting procedure of the bank.
To identify training and development methods applied in the bank.
To know performance management practices and compensation practices in the bank.
1.3 Methodology
In order to conduct such a study the report follows some specific methods. The report is descriptive in nature. Data were collected from both primary and secondary sources.
Primary data were collected from the bank through specific questionnaire.
Secondary data were collected from various external sources like texts, internet and annual report of the bank.
1.5 Scope of the Study
This report has been prepared through extensive discussion with bank employees and with the clients. Prospectus provided by the bank also helps to prepare the report. At the time of preparing the report, I had a great opportunity to have an in depth knowledge of all the banking activities practiced by the Exim Bank Limited.
1.6 Limitations of the Study
The officers are very co-operative but they are too busy to give me time to get knowledge about practical activities. Moreover they have to deal in a very competitive environment based on money related activities. I have to prepare this report alone. Every task has some limitations. I faced some usual constraints during the course of my internship. These are as follows:
Short of time:
I had to complete this report within a shorter period of time. So the time constraint of the study hindering the course of vast area and time for preparing a report within the mentioned period is really difficult.
Busy working environment:
The officials had some times been unable to provide information because of their huge routine work.
Lack of sufficient well informed officials:
Many officials of the branch are not well informed about different systems of Exim bank. They know but less. I had to face much difficulty to collect this information.
Insufficient data:
Some desired information could not be collected due to confidentially of business
Chapter -2
Overview of EXIM Bank Limited
2.1 Background of Exim Bank Bangladesh Ltd.
Export Import Bank of Bangladesh Limited was incorporated in Bangladesh on June 2 1999 as a banking company under the companies Act 1994. The Bank converted its banking operation into Islamic Shariah from traditional banking operation on 1st July 2004 after obtaining approval from Bangladesh bank. Exim bank went for public for issuing shares in the year 2004. Though this bank started its business in 1999 but its growth rate was 40.68 % in 2004 and till 2007 it has grown over 200 % from 2004. The bank has increased its branches to 40 at present and a huge number of customers are getting services from them each day. That indicated that Shariah banking has an effect on the growth of the bank. Within an operative period as short as six years, the bank has arrived at a strong financial and business position by expanding its market share compared to its contemporaries and to some extent to the 2nd even 1st generation banks of private sector. In addition, the Bank has also made a significant contribution to the national economy under the prudent leadership and untiring support of the member of the Board of Directors, who are leading business personalities and reputed industrialists of the country.
2.2 List of Sponsors
• Md. Narzul Islam
Mazumder
• Md. Nazrul Islam
Swapan
• Mohammad Abdullah
• Md Altaf Hossain
• Nasreen Islam
• Md. Mazakat Harun
• Md. Fahim Zaman
• Pathan Asma Begum
• Eng. Aminur Rahman Khan
• Zubayer Kabir
• Rizwana K. Riza
• Md. Habibullah
• Md. Nur Hussain Hasina
• Akhter Anjan Kumar
• Saha A.K.MNurulFazal
• Bulbul
• Md. Abdul Mannan
• Rabeya Khatoon .
• Mahmuda Begum
• Nasima Akhter
• Sabira Sultana
• Mamtaj Begum
• Md. Shaiful Alam
• Hamida Rahman
• Md.FaizUllah
• Meer Joynal Abedin
Nahida Akter
2.3 Board of Directors
Name Designation
Md. Faiz Ullaha
A.K.M. Nurul Fazal Bulbul
Md. Habibullah Directors
Md. Nurul Amin
Mohammad Shaidullah
Md. Golam mahbub Company Secretary
2.4 Vision of The Bank
the gist of our vision is ‘Together towards Tomorrow’. Export Import Bank of Bangladesh Limited, as the name implies, is not a type of Bank in some cmuitries on the globe, but is the first of its kind in Bangladesh. It believes in
togetherness with its customers, in its march on the road to growth and progress with
services. To achieve the desired goal, there will be pursuit of excellence at all stages wok a climate of continuous improvement, because, in Exim Bank, we believe, the firm of excellence is never ending. Bank’s strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive environments. Its personalized quality services to the customers with the trend tf constant improvement will be cornerstone to achieve our Operational success.
2.5 Mission of the Bank:
The bank chalked out the following corporate objectives in order to ensure
smooth achievement of its goals:
• To be the most caring and customer friendly and service
oriented bank,
• To create a technology based most efficient banking environment for its Customers.
• To ensure ethics and transparency in all level.
• To ensure sustainable growth and establish full value of the honorable shareholders, and
• Above all to add effective contribution to the national economy.
2.6 Organization Structure:
The total Management structure of EXIM bank is given below.
2.7 Product & Services
finance/ Investment;
• Corporate Finance
• Industrial Finance » Lease Finance
• Hire Purchase Finance
• Commercial Investment
• Project Finance
• Syndicate Investment
• Retail Investment
• Mortgage Invesrment
• Loan against Share and Securities
Exchange;
Non Resident Foreign Currency Deposit Account(NFCD) Foreign Currency Deposit Account
Savings Scheme:
Monthly Savings Scheme(Money Grower)
Monthly Income Scheme(Steady Money)
Double the deposit in 6 years (Super Savings)
10 years deposit-more than triple (Multiples Savings)
Education Savings Scheme
Bank emphasizes on non-fund business and fee based income. Bid bond/ bid security pew be issued at customer’s request.
Esim Bank is posed to extend L/C facilities to its importers / exporters through lishment of correspondent relations and Nostro Accounts with leading banks all fcier the world. Moreover, Consumers can deposit their Telephone bill of Grameen Rone in all the branches except Motijheel and the consumers of Palli Buddut somity rf Gazipur can deposit their electricity bill to Gazipur branch.
E-CASH/ ATM SERVICE
The bank is currently providing Credit Card Service (MasterCard) to the privileged mers of the bank in collaboration of Prime Bank. Floating VISA card for both >it and Credit card service is under process.
2.8 Bank Operational Area
Export and Import Trade Handling and Financing As a commercial Bank, bank’s do all traditional Banking business including the wide noge of savings and credit scheme products, retail banking and ancillary services •Mb the support of modern technology and professional Excellency .But our main feus is, for obvious reason, on export and import trade handling and the development
Uf ecirepreneurship and patronization of private sectors..
2.9 Achievements
is a great pleasure that by the grace of Almighty Allah, we have migrated at a time •A the branches from its conventional banking operation into Shariah based Islamic poking operation without any trouble. Lot of uncertainties and adversities were there this migration process. The officers and executives of our bank motivated the customers by counseling and persuasion in light with the spirit of Islam especially for the non-Muslim customers. Our IT division has done the excellent jpb of converting and fitting the conventional business processes into the processes based CD Shariah. It has been made possible by following a systematic procedure of migration under the leadership of honorable Managing Director.
2.10 list of Branch
1. Head Office Corporate Branch
2. Saver Branch
3. Motijheel branch
4. Karwan Bazar Branch
5. Panthapath Branch
6. Gulshan Branch
7. Gazipur Branch
8. Imamganj Branch
9. Nawabpur Branch
10. Narayangonj Branch
11. Shimrail Branch
12. Rajuk Avenue Branch
13. New Eskaton Branch
14. Uttara Branch
15. Mirpur Branch
16. Sat Moshjid Road Branch
17. Elephant Road Branch
18. Naria Branch
19. Mawna Branch
20. Malibagh Branch
21. Ashulia Branch
22. Ashugonj Branch
23. Bashundhara Road Branch
24. Kustia Branch
25. Agrabad Branch
26. Khatunngonj Branch
27. Jublee Branch
28. Sonai Muri Branch
29. Laksham Branch
30. CDA Avenue Branch
31. Chowmuhani Branch
32. Comilla Branch
33. Modaffargonj Branch
34. Chhagalnaiya Branch
35. Pahartoli Branch
36. Sylhet Branch
37. Moulvi Bazar Branch
38. Golapgonj Branch
39. Fenchugonj Branch
40. Jessore Branch 4 l.Khaulna Branch
42. Bogra Branch
43. Rajshahi Branch
44. Rangpur Branch
2.11 Capital and Reserves
The Bank started its voyage with an authorized capital of TK 1,000 million whole it’s initial paid up capital was TK.225.00 subscribed by the sponsors in the year 1999. The Capital and Reserve of the Bank as on 31st December 2005 stood at TK. 2179.81 million including paid up capital of TK.878.S5 million. The Bank also made provision m unclassified investment which in amounted to TK.263.18 million.
2.12 profit of this Bank as of 2004 to 2007
From the figure as well as from the profit and loss account data we can see that it has increased day by day. In 4004 there was a value of 387,114,999 and it percentage rate was 15%where in 2005 was 519,304,533 and percentage was 21%. In 2006 there value was 671,000,470 and percentage was 27% and in 2007 there value was 932,513,965 and percentage was 37%. From this information we can say that the profit of this bank is increasing day by day for there efficient worker as well as for there better management body.
2.13 Total Assets
The total asset of the Exim bank has differed from one year to another year. The figure shows the 2005 there was a small position from the 2007. It has increased day by day and it is increasing. That means we can say that the bank total asset in increasing for there better service well as there better performance.
2.14 Total Liabilities and Shareholders Equity
2005 there total liabilities and shareholders equity was 27 % where 2006 is 33 % and in BOOT it increased at the percent of 40 %. Form this information we can say that it has sufficient to do this and if it occurs more it will be hampered.
Chapter -3
HRM- An Overview
3.1 Meaning of HRM:
Management and human resource management are one and the same. They should never be separated. Management is personnel administration. Management has the three jobs, two of which are directly related to personnel managing, a business, managing managers and managing workers and work. The word management has three syllables Manage-Men-T. If T is taken for tact, then etymologically management means how to manage men with tact. Management is the process of efficiently getting things done with and through other people. HRM deals with the design of formal systems in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals.
There are many definitions about human resource management (HRM). One of the well known definitions offered by Michael Jucious (1984). He defined human resources management or personnel management “as the field of management involves planning, organizing, directing and controlling the function of procuring, developing, maintaining and motivating a labor force.” It is the process of acquiring, retaining, terminating, developing and properly using the human resources in an organization. The acquisition function begins with planning. It includes the recruitment, selection and socialization of employees. Though HR planning, managers attempt to anticipate forces that will influence the future supply of demand for employees.
The development function includes employee training, management, development and career development. As jobs evolve and change, ongoing retraining is necessary to accommodate technological changes. Encouraging development of all employees is necessary to prepare organizations for future challenges. Career planning identifies paths and activities for individual employees as they develop within the organization.
The motivation function begins with the recognition that individuals are unique and the motivational techniques (job satisfaction, employee performance appraisal and compensation) must reflect the needs of each individual. Assessing how employees perform their jobs is the focus of performance appraisal. Compensation rewards people for performing organizational work through pay, incentives and benefits.
The maintenance function is concerned with providing those working conditions that employees are necessary in order to maintain their commitment to the organization. The relationship between managers and employees must be handled effectively if both the employees and the organization are to prosper together. HRM deals with the design of formal system in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals. There is a growing recognition that effective use of people in the organization can provide a competitive advantage.
It pervades the organization. Every person in an organization is involved with personnel decisions. The responsibility for human resource management activities rests with each manager. If managers throughout the organization do not accept their responsibility, then human resources activities may be done only partially or not at all. It is concerned with managing people at work. It covers all types of personnel. It is a continuous function.
It draws on a number of related disciplines, such as industrial psychology, Sociology, Social Psychology, Anthropology and Economics. The function of HRM is advisory in nature. In management terminology, it is a staff function. The personnel manager advises the operating departments on matters relating to personnel. He does not issue orders to them but gives them advice
Traditionally,HRM is the process of acquiring,training,appraising,and compensating employees and attending to their labor relation,health and safety,and fairness concerns but in the changing context,HRM is seen as a set of techniques that claimed to embrace and promote new approaches to management of people and work organization to enhanee employee commitment and flexibility as well as their willingness to respond rapidly with the changing market conditions for providing competitive advantage to the organizations.
This approach is based on four key elements.
1.Beliefs and assumption:
a.That this is the human resources,whice gives competitive edge.
b.That the aim should be not mere compliance with rules but employee commitment .
c.That therefore, employees should ,for example,be very carefully selected and developed.
2.Strategic Qualities:
a.Because of the above factor,HR decision are of strategic importantance.
b.Top management involvement is necessary.
c.HR policy should be integrated in to the business strategy,stemming from it and even contributingto it.
3.Critical role of the managers:
a.Because HR practice is critical to core activities of the business,it is too important to be left to personnel specialist alone.
b.Line managers are (or need to be )closely involved as both deliverers and drivers of the HR policies.
c.much greater attention is paid to the management of managers themselves.
4.Key Levers:
a.Managing culture is more important than managing proceures and systems.
b.Integrated action on selection ,communication,training,reward and development.
c.Restructuring and job redesign to allow devoleded responsibility and empowerment
3.2 History of HRM:
The utilization of people, at least in a rudimentary form, can be traced to ancient times. Efforts to best use talents, even through informal in nature, were undertaken whenever people came together in a community. The change has been that during the course of the least century efforts to best manage human resources have become more formal and specialized. The history of HRM can be characterized in two ways. First, as moving through four broad phases: the craft system, scientific management, the human relations approach, and the current organizational science-human resource approach.
Through the twentieth century time line illustrated in Table 1.1.
The Craft System:
From the earliest times in Egypt and Babylon, training in craft skills was organized to maintain an adequate supply of craft workers. By the thirteenth century, craft training had become popular in Western Europe. Craft guilds supervised quality and methods of production and regulated conditions of employment for each occupation. The master crafts worker controlled the craft guilds, and the recruit entered after a period of training as an apprentice. The craft system was best suited to domestic industry, which the master operated on his own premises, with his as assistants residing and working in the same house.
Scientific Management:
The Industrial Revolution and mass production emerged in the nineteenth and early twentieth centuries and led to the deterioration of the craft guilds. The development of mass production transformed the organization of work in two important ways. First, tasks were subdivided into very simple parts that could be performed by unskilled workers. Second, manufacturing grew to such an extent that a large hierarchy of supervisors and managers became necessary. Along with mass production came the assembly line and a scientific approach to an analysis of work in terms of its constituent parts.
The basis of scientific management is that there is one best way to do a job. The best way will be the most efficient and therefore the fastest and least expen¬sive. The founder of this new field of scientific management was an American me¬chanical engineer, Frederick “W. Taylor (1856-1915). Two of Taylor’s contempo¬raries, Frank Gilbreth (1868-1924) and his spouse Ullian Moeller Gilbreth (1878-1972), joined in becoming the proponents of scientific management or in¬dustrial engineering.
In the decade after 1910, the principles of scientific management were applied on a wholesale basis in the United States. Taylor and his disciples assumed that workers wanted to be used efficiently and were motivated by money. This philoso¬phy proved to be incorrect because it ignored feelings-and other motives. Workers were left dissatisfied with their jobs. Union opposition grew as union organizers condemned Taylorism for depriving workers of a voice in the conditions and func-tions of their wink. One result was the emergence of welfare secretaries as organizational employee to oversee programs for the welfare of employees. These pro-grant included recreational facilities, employee assistance programs, and medical programs. The welfare secretary position was the beginning of the professional personnel (now human resource) function.
As antiquated as scientific management seems now, some would argue that many of the basic principles still apply today.26 For example, the many special in-centive systems organizations use to motivate employees and reward performance are adapted from Taylor’s ideas. The ideas of scientific management are adaptable, and its basic principles continue to have relevance after almost 100 years.
Human Relations:
The first important discovery about the social context of mass production occurred in tin- famous experiment undertaken by U.S. social scientists Elton Mayo (1880-1940) and Fritz Roethlisberger (1898-1974) between 1924 and 1932 at Western Electric’s Hawthorne plant in Chicago. Mayo and his colleagues sought to study the effects of changes in illumination on productivity. The investigators chose two groups of employees working under similar conditions. The level of illu¬mination was varied for the test group but kept constant for the control group. To Mayo’s surprise, the output of both groups rose. Even when the researchers told the workers in one group that the light was going to be changed but then did not change it, the workers expressed satisfaction, and productivity continued to
Increase. Mayo saw that the significant variable was not physical but psychologi¬cal, The reason for the increase in productivity was the workers’ attitudes toward their jobs and Western Electric. Because their cooperation had been requested, the workers now felt themselves part of an important group whose help and advice were being sought by the company.27
The discovery of the “Hawthorne effect” led to further research on the social factors associated with work, Results of these studies led to the human relations movement, with its emphasis on the fact that employees need to be understood in order to be satisfied and productive. However, the idea that good human relations in and of themselves will increase productivity failed to be consistently supported, and many of the movement’s ideas were abandoned.
Organizational Science:
Following realization of the limitations of the human relations approach, academic researchers from various behavioral disciplines, such as psychology, political sci¬ence, economics, and sociology, began studying organizations. The organiza¬tional science approach focuses more on the total organization and less on just the individual. HRM, as we currently know it, grew out of the organizational sci¬ence trend and combines learning from the previous movements with current re¬search in the behavioral sciences.
Evolution of HR Management
Time period HR Focus HR Activity Example Event
Before 1890 1900-1910 Industrial technologies Employee well-being Disciplinary systems
Health and safety programs National cash register (ncr)forms first personnel department to handel employee issues
1920s Task design, efficiency, and impact of work groups on individual workers • Time and motion studies
• Employee counselling and testing period of scientific management
1930s • Union of workplace
• Passage of major labor laws • Communication programs
• Anti-union campaigns
• Personnel becomes staff support to operational line units Major labor relations legistation:
Norris –laGuardia Act
National labor relation Act(wagnet Act)
1940s Employee benefits and compensation • Wage increases
• Cost-of-living adjustments
• Pension, health, and other benefits plans General Motors And the United Auto Workers sing first contract with “escalator”clause.
1950s • Employee relations
• Specialized personnel functions • Training and development
• Separate divisions within personnel estabnlished; recruitment, labor relations, training, benefits etc. The Hawthorne studies from the human relation movement find widespread applicability.
1960s Employee participation • Employee rights issues now regulated in areas of discrimination, equal opportunity, safety and health, and various benefit reforms Peter Drucker’s encyciopedic the practice of Management (1954) finds widespread applicability.
1970s Government intervention Employee rights issues now regulated in areas of discrimination, equal opportunity, safety and health Griggs v.Duke power,the first u.s Supreme Court employment discrimination case.
1980s • Employee recognition
• Displacement William Ouchi,s Theory Z examines the applicability of japanse employment practices to Western companies.
1990s • Changing demographics of work force
• Technology About 70% of married women are employed,more than double the 1960 rate.
2000 and beyond • Strategic HR planning Exemplified by David Uirich’s book Human Resource Champions, which examines the role of HRM in the twenty-first century.
3.4 Function of HRM
HR managers are performing a variety of functions. The functional areas of HR managers are changing as the time goes on. The main HRM functions include:
• Human resource planning is an important activity that involves estimating the size and makeup of the future work force. It is a process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time. Capable of effectively and efficiently completing those tasks that will aid the organization in achieving its overall objectives. Planning of human resources is the life-blood of the firm. Without the right people in the right place at the right time, the firm could go out of business.
Recruitment is the process of finding and attracting qualified or suitable applicants to fill vacancies. Recruiting is important because the best- qualified applicants must be found to fill vacancies. The methods and procedures used to acquire an understanding about jobs are called job analysis. This is discussed next. There are mainly two sources of recruitment: internal and external. Promotion from within an organization is called internal source and recruiting new people from outside the organization is known as external source.
Job analysis is the process of determining the tasks that make up the job ands the knowledge and skills and abilities an employee needs to successfully accomplish the job. From job analysis, job description and job specification can be prepared. Job description is a written statement of what the jobholder does how it is done and why it is done. Job specifications state the qualifications necessary for a job.
Selection is a process of hiring suitable people for job. Right man for right job is the main goal of selection. The selection process involves many steps such as preliminary reception of application, interviewing, test, medical test, references and final decision of hiring.
Placement is the assignment or reassignment of duties to employee. It may take different forms such as promotion, transfer, demotion, and termination.
Orientation is a process of getting new employees acquainted with the organization, its culture, rules and regulation, objectives and supervisors and other employees. It is the act of introducing new employees to organization and their work units. It is important because it helps new employee to adapt with new situation.
Training is a continual process of helping employees to perform at a high level. It is a process of acquiring new skills to do job properly. Training changes and modifies employee attitudes and behaviors that will improve his ability to perform on the job. To be effective, a training program must accomplish a number of objectives. First, it must be based on both organizational and individual needs. Second, the objectives of training should spell out what problems will be solved. Third, all training should be based on sound theories of learning. Finally, a training program must be evaluated to determine whether it is working.
Job evaluation is a process of measuring and determining the value of each job in relation to all jobs within the organization. Jobs are ranked in order to arrive at each job’s appropriate worth. It is the basis of designing a well- balanced compensation program. The widely used methods of job evaluation are ranking method, classification method, point rating method, and factor comparison method.
Performance appraisal is a process in an organization whereby each employee is evaluated to determine how he or she is performing. Employee may be appraised against absolute standards, relative standards, and objective. The appraisal process consists of six steps: establish performance standards, communicate performance expectations to employees, measure actual performance, compare actual performance with standards, discuss the appraisal with the employee, if necessary and initiate corrective action.
Compensation is the reward or price for labor. The goal of compensation administration are to design the lowest-cost pay structure that will attract, motivate and retain competent employees, and that also will be perceived as fair by these employees.
Discipline refers to a condition in the organization when employees conduct themselves in accordance with the organization’s rules and standard s of acceptable behavior. For the most part, employees discipline themselves. But not all employees will accept the responsibility of self-discipline. Some are problem employees. These employees require some degree of extrinsic disciplinary action. This extrinsic is labeled punishment. The most frequent discipline problems can be classified as related to attendance, on-the-job behavior, dishonesty, and outside criminal activities. Disciplinary actions available to the manager include oral warning, written warning, suspension, demotion, pay cut, and dismissal.
Trade union is an organization of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining. The goals of unions include
Influencing the wage and effort bargain,
Establish a security system for members,
Influencing the administration of rules,
Obtaining political power in the state and over the economy.
Collective bargaining is negotiation, administration and interpretation of a written agreement between two parties; at least one of, which represents a group that is acting collectively, that, covers a specific period of time.
3.5 Importance of HRM:
With the increase in the size and complexity of business organizations, the most important, factor in business. Business needs people as owners, employees, and consumers. Organizations need people to make them operate. Business may be operated differently and the objectives of business may differ, but the universal element in all business activities is people. An organization is nothing without human resources. Any human organization a factory, a hospital or and association consists of people working together. According to economists, the factors of production are land, labor, capital and entrepreneurship. Of all the resources, the most important one is human resource because human being plays a dual role- as resource, as well as a motive force for all other resources by manipulating them by way of developing, utilizing, commanding and controlling. It is the most important of all other resources. This is because manpower is that resource through which management wants to control and direct all other resources like machines, materials, money and others. An organization is nothing without people.
It is true that capital technology and human force are the important elements for production. In fact, productivity is the function of a set of interrelated factors (e.g., political, social, economic, educational and cultural). Experts on productivity improvement emphasize more on people factor for enhancing productivity. They are of the view that relatively human resource is the most important of all the factors of production. Resources other than human being could produce nothing. Physical resources by themselves cannot improve efficiency or contribute to an increased rate of return on investment. It is through the combined and concerted efforts of people that monetary or material resources are harnessed to achieve organizational goals. Why is human resource superior to other elements of production? Capital can be borrowed and technology can be imported, but people cannot be bought. All the factors of production other than the workforce skills can be duplicated anywhere in the world. It is all fungible capital, technology, raw materials, information all except for one thing the most critical part, the one element that is unique about a nation, its workforce (Griffin, 1994). Fred Lutherans (2000) an organizational Behavior, rightly argues that “it is not technology, which separates the Saturn plant of GM from other manufacturing facilities. Rather the Saturn plant represents a profound change in the way people are managed.”
Productivity is basically people-based. It is for this reason the developing countries in spite of acquiring modern technologies could not achieve higher level of productivity. The rapidity of technology transfer, access to world wide capita! markets and global competition reduce the traditional advantages of superior technology and isolated markets, Technology becomes inactive without work forces. It is man who works behind machine. Even in a highly automated plant, people are nevertheless required to co-ordinate, and control the plant’s operation Workers must use them effectively. They must be motivated to provide the best quality and customer service possible. Sakurai (1989), an adviser of the Japan Productivity Center has rightly pointed out that “improvement of productivity through the introduction of new technology depends, by and large, on how people in the organization accepts the change. To obtain desired result from the introduction of change in technology, the change must be acceptable to them”. That is, acceptance of change will lie with the behavioral level of the workforce.
Needless to say, machine increases the muscle power of man. Man without the machine is also less productive. They are inseparable. Labor and technology combined generate the outputs that are priced and sold to customers. As Morita, the founder and the author of “Made in Japan” remarks “assets make things possible but people make things happen.” Organizations depend on people to vro change occurs without efficient human beings. Improved productivity through people is ultimately the fountainhead of all human progress. In the ultimate analysis, it is the human factor, which will determine the final productivity of enterorise. People supply the talents, skills, knowledge and experience to achieve the organizations objectives. Let us now explain some inherent qualities that a human being is endowed with.
# Practice/ Application in the bank:
This internship report information collected form SHAH MD ABDUL BARI.
The Senior vice president of the exim bank.
The organization name where I completed my internship.
EXPORT IMPORT BANK LIMITED.
It was established 1999 in Bangladesh.
The ownership pattern of the organization is Company.
The size of the organization is large.
This organization Human resources Department looks the Hr function.
Informed by particular department to provide Hr function Such as –recruitment,Selection,Induction,training,and development,performance appraisal,Compensation,training and development,employee maintenance.
Without Hr function the Hr Department are performed to help other department as required by Company needs and according to the order of Managing Director.
The HR Manager report to the Managing Director.
In this organization line Authority have in taking decision relating to personnel matters.
The total number of Employees in this organization.
Pie chart
The Size of the Hr department.
Pie chart
Here we mention the hr department personnel by educational qualification.
Pie chart
Hr department personnel by work experience.
Table chart
Here we mention the following areas in our organization has human resources policies.
This organization maintain written human resource policies.
Chapter -4
Employment of Personnel
4.1.1 Meaning of Human Resource Planning:
• Planing is the most important and primary function of management.
• It is a process of selecting the organizational objectives and taking action to achieve those objectives.
• Planning is looking ahead.
• Planning must be realistic and workable.
• Planning of human resources is a major managerial responsibility.
• It is important because human resources provide a firm the competitive advantage.
• Human resource is a primary resource without which other resources cannot put into use.
• In the age of competition, firms are focusing their attention on employee knowledge and skill.
• Obviously, human resources are going to occupy the central stage of human activities, especially in the field of industry and business.
• In view of its importance in the organizational effectiveness, separate HRP departments have been set up in most of the important business organizations.
• Certainly, many organizations have voiced the idea that their human resources differentiated them from their competitors. The significance of human resources as a core competency was confirmed in a study of 293 U.S. firms. The study found that HR management effectiveness positively affected organizational productivity, financial performance and stock value (Huselid 1997).
• To achieve any goals, Hr requirement needs to be assessed, located and hamessed.
• HRP is not mere assessment of the number of human resources requried.
• An organization has to categorize HR as per their knowledge and skills and also ensure their balanced allocation.
• Improper HRP may lead to overstaffing increasing direct cost, cost of training, amenities. Under staffing also affect a production, morale and productivity.
• An organization does not own person as it does capital and physical assets; this resource is seldom given proper attention. Many managers gave failed because they have taken their human resources for granted. It is one of the most critical management undertakings of this decade.
• HRP is a process by which an organization can move from its current manpower position to its desired manpower position.
• It, then, translates the organization’s objectives and plans into the number of people needed to meet those activities.
• Through planning management makes a balance between demand for and supply of right number and kinds of people at the right time.
• It is a supply and demand calculation.
• Manpower is an asset, it is an asset which appreciates-which grows over time. Machines depreciate as time goes on.
Some popular definitions of HRP are given below :
• Robbins (1998) defines HRP as “the process by which an organization ensures that it has the right number and kinds of people at the right places, at the right time who are capable of performing their assigned tasks effectively and efficiently.
• In the worlds of Coleman Bruce (1997), HRP is the process of determining manpower requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization.
• According to the above definitions, HRP consists of the following elements.
• Establishing and recognizing the future job requirements.
• Identifying deficiency in terms of quantity.
• Identifying deficiency in terms of quality and specification.
• Identifying the sources of right type of man.
• Developing the available manpower.
• Ensuring the effective utilization of work force.
• A manpower plan must be a set of two plans.
• A manpower demand plan and a manpower supply plan.
4.1.2 Job Analysis :
Over the past fifty years, an enormous number of methodologies have been developed for use in measuring and understanding the nature of jobs. Part of the discipline of job analysis of focuses on these traditional methods. Within this traditional approach, the goal of research and practice has been to identify better methods and measurement procedures to desirable the content of jobs. In the traditional view, there is a straightforward assumption that jobs exist and can be measured. In contrast to the traditional view are the job extinction proponents, who argue that jobs no longer exist in modern organizations due to the dynamic nature of work in rapidly changing business environments. The job extinction view argues that much to what we now know as job analysis is no longer meaningful and must be replaced with drastically different means for understanding what employees do in organizations.
On day of appreciating these two different views of job analysis is to compare how the two perspectives define “a job.” Traditionally, a job has been defined using four concepts that have a hierarchical relationship to one another. Thus, a job is comprised of several similar positions. Each position is made up of a set duties, which are comprised of several distinct tasks. A definition for each of these four concepts is given below :
• A task is “a meaningful unit of work activity generally performed on the job by one worker within some limited time period. It is a discrete unit of activity and represents a composite of methods, procedures, and techniques.
• A study is a loosely defined area of work that contains several distinct tasks that are performed by an individual.
• A position is the set of tasks and duties performed by a single individual in an organization. Each person in an organization has a position.
• A job is “a group of positions that are identical with respect to their major or significant tasks and sufficiently alike to justify their being covered by a single analysis.
A job analysis is a systematic exploration of the activities within a job. It is a technical procedure used to define the duties, responsibilities and accountabilities of a job. This analysis “involves the identification and description of what is happening on the job accurately and precisely identifying the required tasks, the knowledge, and the skills necessary for performing them, and the conditions under which they must be performed.
4.1.3 Job Description and Job Specifications:
A job description is a written statement of what the job holder does how it is done, under what conditions it is done, and why it is done. It should accurately portray job content, environment, and conditions of em¬ployment. A common format for a job description includes the job title, the duties to be performed the distinguishing characteristics of the job, environmental conditions, and the authority and responsibilities of the jobholder. An example of job description for a Benefits Manager is provided in Exhibit 1.
When we discuss employee recruitment, selection, and performance ap¬praisal, we will find that the job description acts as an important resource for: (1) describing the job (either verbally by recruiters and interviewers or in written advertisements) to potential candidates; (2) guiding newly hired employees in what they are specifically expected to do; and (3) providing a point of comparison in appraising whether the actual activities of a job incumbent align with the stated duties. Furthermore, under the Americans with Disabilities Act, job de¬scriptions have taken on an added emphasis in identifying essential job functions.
Exhibit:1
Job Title Benefits Manager Occupational code:
Reports To: Director,Human resources Job no:
Supervises:staff of three Date :
Environmental condition: None
Function:Manages Employee benefits program for organization.
Duties and Responsibilities:
plans and directs implementation and administration of benefits programs designed to insure employees against loss of income due to illness.injury layoff.or retirement.
Direct preparation and distribution of written and verbal information to inform employees of benefits programs,such as insurance and pension plans,paid time off,bonus pay,and special employer sponsored activities:
Analyzes existing benefits policies of organization ,and prevailting practies among similar organization ,to establish competitive benefits programs.
Evaluates services,coverage ,and options available through insurance and investment companies,to determine programs best meeting needs of organization.
Plan modification of existing benefits programs ,utilizing knowledge of laws concerning employee insurance coverage and agreements with labor unions ,to ensure compliance with legal requirements.
Recommends benefits plan changes to management ,notifies employees and labor union representatives of changes in benefits programs.
Directs performance of clerical function,such as updating records and processing insurance claims.
May interview,select,hire and train employees.
Job Specifications:
The job specification states the minimum acceptable qualifications that the incumbent must possess to perform the job successfully. Based on the information acquired through job analysis, the job specification identifies the knowledge, skills education, experience, certification and abilities needed to do the job effectively. Individuals possessing the personal characteristics identi¬fied in the job specification should perform the job more effectively than those lacking these personal characteristics. The job specification, therefore, is an im-portant tool in the selection process, for it keeps the selector’s attention on the list of qualifications necessary for an incumbent to perform the job and assists in determining whether candidates are essentially qualified.
Job Characteristics:
>Successful incumbent will have knowledge of policies and practices involved in personnel /human resource management function –including recruitment , selection, training, and promotion regulations and procedures: compensation and benefits packages :labor relations and negotiations strategies; and human resource information systems.
>Excellent written and verbal communication skills as well as deductive and inductive reasoning skills are critical.
4.1.4 Job Analysis Methods
The basic methods that HRM can use to determine job elements and the essential knowledge, skills, and abilities for successful performance include the following :
Observation Method
Using the observation method, a job analyst watches employees directly or review films of workers on the job. Although the observation method provides firsthand information, worker often do not function most efficiently when they are being watched, and thus distortions in the job analysis can occur. This method also requires that the entire range of activities can occur. This method also requires that the entire range of activities be observable. This is possible with some jobs, but impossible for many for example, most managerial job.
Individuals interview Method:
Using the individual interview method, a team of job incumbents is selected and extensively interviewed. The results of these interviews are combined into a single job analysis. This method is effective for assessing what a job entails, and involving employees in the job analysis is essential.
Group Interview Method:
The group interview method is similar to the individual interview method except that a number of job incumbents are interviewed simultaneously. Accuracy is increased in assessing jobs, but group dynamics may hinder its effectiveness.
Structured Questionnaire Method:
Under the structured questionnaire method, workers are sent a specifically designed questionnaire on which they check or rate items they perform on their job from a long list of possible task items. This technique is excellent for gathering information about jobs. However, exceptions to a j0b may be overlooked, and there is often no opportunity to task follow-up questions or to clarify the information received.
Technical Conference Method:
The technical method uses supervisions with extensive knowledge of the job. Here, specific job characteristics are obtained from the “experts.” Although a good data-gathering method, it often overlooks the incumbent workers’ perceptions about what they do on their job.
Dairy Method:
The diary method requires job incumbents to record their daily activities. The diary method is the most time consuming of the job analysis methods and may have to extend over long periods of time all adding to its cost.
These six methods are not meant to be viewed as mutually exclusive; no one method is universally superior. Even obtaining job information from the incumbents can create a problem, especially if these individuals describe what they think they should be doing rather than what they actually do. The best results, then, are usually achieved with some combination of methods with information provided by individual employees, their immediate supervisors, a professional analyst, or an unobtrusive source such as filmed observations.
4.2 Recruiting:
4.2.1 Meaning of Recruiting
Recruiting is the process by which organizations locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted, to acquire new skills, and to permit organizational growth. Recruiting is an even more important activity when unemployment rates are low and economic growth is strong, as firms compete to attract the qualified employees they need to succeed. Recruiting can be quite expensive. Companies spend, on average, over $1,000 recruiting each nonexempt employee, about $7,000 recruiting each exempt employee, and over $23,000 recruiting each executive from the external labor market.
Recruitment follows HR planning and goes hand in hand with the selection process by which organizations evaluate the suitability of candidates for various jobs. Without accurate planning, organizations evaluate the suitability of candidates for various jobs. Without accurate planning, organizations may recruit the wrong number or type of employees. Without successful recruiting to create a sizable pool of candidates, even the most accurate selection system is of little use. It also focuses on the job applicant and the ways in which candidate looks for and choose a job.
4.2.2 Method:
Recruiting Advertising:
A very common formal recruiting method is newspaper advertising. This method, which is used by virtually all organizations, accounted for 780 percent of recruitment advertising expenditure in 1998. Ads placed in newspaper are accessible to everyone and thus do not discriminate against any groups in disseminating information about job openings. Recruitment advertising has an obvious target people who are seeking work and an obvious goal attracting these job seekers to apply for a job at a particular company. Newspaper ads, however, reach a much wider audience. Estimates are that only 10 to 20 percent of the readers of help-wanted ads are currently seeking work. Other readers are not actively looking for jobs but skim the ads regularly to see what is available. These readers are unlikely to apply immediately but are developing images of the employers whose ads they see. A well-designed, informative advertisement may help convince these people to consider the company at some later date when they are interested in a new job.
Internet Recruiting:
Internet Recruiting Internet recruiting has grown at a phenomenal rate over the past few years. Seventy-nine percent of Fortune’s Global 500 companies recruited on the Internet in 2000, and 100 percent were expected to do so by 2002. Entire new job titles such as Internet Sourcer, Internet Recruiting Specialist, and Internet Recruiting Manager have come into being in the past few years. Companies find that Internet recruiting is much less expensive and much fadter than traditional methods. It is by far the most economical way to reach a nationwide or worldwide audience of job candidates. Further advantages of Web-based recruiting, as seen by HR Managers and search consultants. A drawback can sometimes be the very large number of resumes that are submitted, many of which are not at all suited to the positions listed.
At first, Internet recruiting was used largely to reach candidates in the information technology and engineering fields. Each year, as more and more people have gained access to the Web, a wider and wider range of jobs have been advertised and successfully filled via this recruitment medium. New graduates are especially active in using the Web to locate job opportunities, apply online, and research companies as potential employers, including the following :
• Resume bulletin boards on which candidates can list their qualifications and availabilities.
• Sites that provide online access to the help-wanted sections of many major newspapers.
• Sites that seek both original job listings from employers and resumes from applicants and provide search and matching services for a fee.
• Company web sites that contain job listings and facilities for online submission of resumes.
Employment Agencies:
Another formal method of recruiting is to use an em¬ployment agency. An agency finds and prescreens applicants, referring those who seem qualified to the organization for further assessment and final selection. An agency can screen effectively only if it has a clear understanding of the position it is trying to fill. Thus it is very important that an employer be as specific and accu¬rate as possible when describing a position and its requirements to an employ¬ment agency.
Employment agencies are covered by Title VII of the Civil Rights Act and thus are forbidden to discriminate in screening and referring candidates on the basis of race, color, sex, religion, or national origin. Sometimes, however, agencies have been known to discriminate at the request of firms. For instance, in a survey of re¬cruiters for executive search firms, 14 percent reported having been asked not to refer Jewish candidates for certain positions.
Alternatively, an employment agency may discriminate without the client organization’s knowledge if the agency’s recruiters mistakenly believe that a certain race or sex of candidate is more likely to be welcomed or if the agency uses an in¬valid selection device with an adverse impact in screening. In this case, both the agency and the client organization could face discrimination charges.
Agencies that provide employment services can be publicly funded or for-profit agencies. On occasion, unions provide employment services as well.
Public Job Service Agencies:
Every state has a publicly funded agency that is affiliated with the U.S. Employment Service (USES). These public job service & >e’ agencies have a number of offices throughout each state. In addition to adminis¬tering unemployment compensation, public job service agencies attempt to find jobs for those seeking work. In most cases, able-bodied persons who are collecting unemployment compensation must register with the job service agency; however, anyone who is seeking work may register as well.
State job service agencies interview job seekers to find out about their skills, experience, and preferences. Employers call in their vacant job and describe the job specifications- The agency then matches applicants and refers qualified persons to the employer for interviews. State job service agencies may also test applicants when requested to do so by employers.
Public job service agencies fill primarily blue-collar and clerical positions. Sometimes, however, the agencies are able to fill higher-level openings. They are also able to recruit nationally through their web site, America’s Job Bank Tan (www.ajb.dni.us). This site lists both openings and resumes of job seekers. One ^f day in February 2002, America’s Job Bank listed 397,799 individuals seeking work and 929,198 jobs to be fitted. State and USES employment agencies offer their ser¬vices with no direct charge to either the job seeker or the employer.
Private, For-Profit Agencies:
Organizations use for-profit private employ¬ment agencies to produce a set of prescreened candidates; job seekers use them to locate a suitable position. For each successful placement, agencies charge a fee that can range from 10 to 30 percent of the employee’s first-year pay. The fee may be paid by either the applicant or the employer, depending on the labor market
Employment agencies specializing in administrative support personnel typically handle jobs paying under $40,000 per year, while those filling professional technical jobs in accounting, finance, data processing, retail, software engineering, and technical sales cover jobs paying $40,000 to $80,000 annually.57 Private employment agencies are presently under threat from Internet job boards and the ability; of companies to recruit directly through their own Web sites. Table 6.4 shows fee fees charged for some specific positions by selected agencies in 1999. A contin¬gency fee means that the fee is payable only if the position is successfully filled. The “retained” fee listed against the Director of Business Development position is paid for a search by an executive recruitment (headhunter) firm, regardless of fee outcome of the effort
Unions:
Unions sometimes provide employment services for their members. For construction workers and stevedores, labor contracts may specify that employ¬ers first seek candidates at the union hiring hall before recruiting elsewhere. The union hall refers union members seeking jobs to companies for evaluation and se¬lection,
Additional Recruiting Methods:
As employers have had to contend wife labor shortages in some regions and occupations, they have used more innovative recruitment methods. Some of these include job fairs, TV or radio ads, direct mail, point-of-sale recruitment advertising (on the assumption that those who buy your product may be interested in making or selling it); and employment hotlines to provide job information twenty-four hours a day. Another increasingly common method is “telecruiting,” whereby potential candidates who are already employed are phoned in an effort to build their interest in changing employers. Table 6.S shows additional methods of attracting employees feat complement traditional re-cruiting activities.
Another way to innovate when job candidates are scarce is to consider bringing them in from an area where employees are more readily available. An example of a company that did this effectively is the Opiyland Hotel in Nashville. When fee hotel doubled in si2e in 1996,1,500 more workers were needed. Wife 3 percent un¬employment in fee local labor market, traditional recruiting sources and methods would not yield fee required number of qualified employees. Therefore, Opryland Hotel went to a place where unemployment stood at 12 percent—Puerto Rico. Two hundred and fifty employees were hired and located in the first year. Because Pureto Rico has a strong hospitality industry and relatively high unemployment, the company was easily able to find qualified staff.
Campus Recruiting:
Campus recruiting is widely used by large and medium-sized firms that need highly educated entry-level employees. Campus recruiting can be very productive for an organization, since many good candidates can be in¬terviewed in a short period of time and at a single location. Furthermore, it is con¬venient because the university recruitment center provides both space and admin¬istrative support.67 Campus recruiting is moderate in cost It is more expensive than word-of-mouth recruiting, gate hiring, or limited advertising, but it ran be less expensive than using employment agencies (when the company pays the fee). A survey of employers in 2000 found that the cost per hire was about $6,200 and that firms generally interviewed about four to five candidates for each one they hired.
One disadvantage of campus recruiting is that candidates are available to start work only at certain times of the year. Other disadvantages include the lack of ex¬perience and the inflated expectations often held by new graduates, the high cost of hiring graduates for positions that may not really require a college degree, and the difficulty of evaluating candidates who do not possess much relevant work his¬tory. In the last few years, another cost of campus recruiting in fields such as infor¬mation technology, engineering, and accounting has been the hefty signing bonuses required to attract candidates. Bonuses ranged from $1,000 lo about $10,000 and averaged $3,500 for these fields in 1999.
The campus recruiting cycle can mean that candidates are interviewed and given job offers up to nine months before they are expected to begin work. In 2001, firms such as Intel and Cisco Systems made offers to candidates early in the year before an unexpected downturn in the information technology industry When these new graduates were ready to report to work in June through September, they were no longer needed. Some firms asked students to defer reporting work for several months; others offered “unsigning bonuses” to those who relinquished their offers.
In planning a firm’s university recruiting program, the recruiter must first de¬cide how many schools to visit Experts advise that more intensive recruiting at a smaller number of appropriately selected schools tends to be more effective than brief visits to a larger number of schools. Recruiters usually choose universities on the basis of the company’s past experience with their graduates, the degrees of¬fered, the reputation of the school, the demography of the student body (e.g., sex, age, and minority composition), the geographic location, and the quality of the col¬lege placement office.
After targeting a subset of schools, the recruiter makes an effort to build up the company’s reputation with students and disseminates detailed information on the types of careers available before making the interview visit A key role in attracting students may be played by the recruiting brochure distributed prior to the inter view visit. A British survey has found mat a good brochure addresses students most pressing information needs: what the job duties will be, starting salary ranges, where the company is located, training and career development policies opportunity for promotion, and the disciplines and degrees required.” Makinj other company literature widely available on campus, awarding scholarships and prizes’, employing students in internship and work/study programs, and sendint executives into trie classroom as guest speakers are additional ways to increase; company’s visibility on campus. By visiting the same schools year after year, the firm can develop visibility and maintain an ongoing relationship with placemen center officials. Recent research also suggests that a top-class company Web site important in attracting university students to events both on and off campus,
Although campus interviewers may be full-time HR professionals, they offer are people who work in some other capacity during most of the year. For instance engineering managers may be pressed into service to conduct campus interview with engineering students for a few weeks each year. J.C. Penny sends young staff members to recruit on campus on the assumption that they will relate better to students. Candidates usually value the opportunity to be interviewed by some one in their own specialty, but this practice can backfire if the interviewer is n well trained for the role.75 Before embarking on recruiting tours, managers should receive in-depth training on how to conduct interviews and should be made aware of EEO issues. They also need to be able to sensibly answer candidates’ question about career opportunities, the company’s compensation and benefits package and procedures during the remainder of the selection process.
Campus interviews are usually followed by site-visit or plant-trip invitations the best candidates. The firm should plan these visits carefully to make a go-impression. For instance, the firm should pay all travel expenses in advance. T trip itself should be well organized, with interviews, meals, and tours careful scheduled so that candidates are not left at loose ends., Candidates particular enjoy having a sponsor to shepherd them through the entire trip. They also talking to employees in positions similar to the one for which they are being ct sidered.
4.3 Selecting:
4.3.1 Meaning:
Hiring good people is particularly challenging in technology-based organizations because they require a unique brand of technical and professional people. They have to be smart and able to survive in the demanding cultures of today’s dynamic organizations. In addition, many of these “qualified” individuals are in short supply and are able to go wherever they like. Once applicants have been identified, HRM must carefully screen final candidates to ensure they fit well into the organization’s culture. The realities of organizational life today may focus on an informal, team-spirited workplace, one in which intense pressure to complete projects quickly and on time is critical, and a 24/7 (24 hours a day, 7 days a week) work mentality dominates. Selection tools used by HRM need to “select out” people that aren’t team players and can’t handle ambiguity and stress.
4.3.2 Selection Process
Initial Scanning: Want a job at Toyota Motor Manufacturing plant in Georgetown, Kentucky? Here’s what you can expect in their hiring process over the coming months:
What’s Assessed?
Technical skills Technical Performance Leadership
Problem-solving Skills Health Assessment
Phase I: Applicants complete applications and watch an Interpersonal Skills one-hour video about the work environment.
Phase II: Applicants complete Kentucky’s Department, of Employment Services’ Situation Judgment Inventory—measuring one’s ability to work in a team and other interpersonal skills.
Phase III: Applicants participate in a four-hour program designed to assess individual and group problem-solving skills. Applicants are observed by Toyota screening experts. Assembly-line applicants also participate in a five-hour assembly simulation,
Phase IV: One-hour interview with a group of Toyota interviewers.
Phase V: Conditional Toyota employee. Applicants un¬dergo two and one-half hours of physical and substance testing at an area hospital
Phase VI: Employee is closely monitored by seasoned
employees who assess job performance for the next six months.
Source: Based on information contained in Hicheline Maynard, Toyota Devises Gaieling Work-out for 3ob Seekers,” USA Today (August 11, 1997), p. 3B; Gary Dessler, “Value-Based Hiring Builds Commit¬ment,” Personnel Journal (November 1993), pp. 98-102; and “Choosing the Right People,” HKHagazine
If our recruiting effort has been successful, we will be faced with a number of potential applicants. Based on the job description and job specification, some of these respondents can be eliminated. Factors that might lead to a negative de-cision at this point include inadequate or inappropriate experience, or inadequate ‘ or inappropriate education. There might also be other “red flags” identified, such as gaps in the applicant’s job history, many brief jobs, or numerous courses and seminars instead of appropriate education.
The screening interview is also an excellent opportunity for HRM to de¬scribe the job in enough detail so the candidates can consider whether they are really serious about applying. Sharing job description information with the individual frequently encourages the unqualified or marginally qualified to vol¬untarily withdraw from candidacy, with a minimum of cost to the applicant or . the organization. Costs, too, can be minimized with the screening interview by using videoconferencing.5
Another important point during the initial screening phase is to identify a salary range. Most workers are concerned about their salaries, and while a job opening may sound exciting^ a low salary may preclude an organization from obtaining excellent talent. During this phase, if proper HRM activities have been conducted, there should be no need to mask salary data.
Once the initial screening has been completed, applicants are asked to cc the organization’s application form. The amount of information required be only the applicant’s name, address, and telephone number. Some organizations, on the other hand, may request the completion of a more compret1 employment profile. In general terms, the application form gives a performance-related synopsis of what applicants have been doing during adult life, their skills, and their accomplishments {see Diversity and HRM). Applications are also useful in that they obtain information the come wants. Additionally, completing the application serves as another hurdle; if the job requires one to follow directions and the individual fails to do so ._the application, that is a job-related reason for rejection. Lastly, applications . quire a signature attesting to the truthfulness of the information given and giving permission to check references. If at a later point the company finds out , information is false, it can result in the immediate dismissal of the individual.
Key Issues : The Civil Rights Acts of 1964 and 1991 and subsequent amendments, executive orders, court rulings, and other legislation have made it illegal to discriminate on the basis of sex, race, color, religion, national origin, disability, and age. The only major exceptions to these guidelines involving age, and religion are cases where it can be shown that these criteria are bonafide occupational qualifications (BFOQ). Many of the items that traditionally appeared on the application form—religion, age, marital status, occupation of spouse.
Employment Tests
Organizations historically relied to a considerable extent on intelligence, apti-tude, ability, and interest tests to provide major input to the selection process. Even handwriting analysis (graphology) and honesty tests have been used in the attempt to learn more about the candidate—information that supposedly leads to more effective selection.
In the 1970s and early 1980s, reliance on traditional written tests for selec¬tion purposes decreased significantly. This was attributed directly to legal rulings requiring employees to justify as job-related any test that is used. Given the historical difficulty and costs in substantiating this relationship, some organiza-tions merely eliminated employment testing as a selection device.
Since the mid-1980s, however, that trend has reversed. It is estimated that more than 60 percent of all organizations use some type of employment test today. For these organizations, there is recognition that scrapping employment tests was equivalent to “throwing out the baby with the bath water. They have come to recognize that some tests are quite helpful in predicting who will be suc¬cessful on the job. There are literally hundreds of tests that can be used by or¬ganizations as selection tools. One can use tests that measure intellect, spatial ability, perception skills, mechanical comprehension, motor ability, personality traits, as well as reading, math, and mechanical dexterity skills. It is not the purpose of this text to review each of these test categories; that is generally the province of books in applied industrial psychology. However, a basic under¬standing of a few test types can be beneficial for HRM practitioners.
Performance Simulation Tests To avoid criticism and potential liability that may result from the use of psychological, aptitude, and other types of written tests, there has been increasing interest in the use of performance simulation tests. The single identifying characteristic of these tests is that they require the appli¬cant to engage in specific behaviors necessary for doing the job successfully. As a result, performance simulation tests should more easily meet the requirement of job-relatedness because they are made up of actual job behaviors rather than surrogates.
Work Sampling Work sampling is an effort to create a miniature replica of a job. Applicants demonstrate that they possess the necessary talents by actually doing the tasks. By carefully devising work samples based on job analysis data, the knowledge, skills, and abilities needed for each job are determined. Then each work sample element is matched with a corresponding job performance element. For example, a work sample for a customer service representative at First Union Bank may involve computation on a keyboard, requiring the appli-cant to make computations during a customer transaction. At Home Depot, a potential check-out clerk is screened for a job to scan the prices of your purchases quickly and accurately. Most go through a similar work-sampling session where supervisors demonstrate how to scan accurately, ensuring that the product did indeed ring up. Then the candidate is given an opportunity to show that he or she can handle the job. Work sampling, then, reflects actual “hands-on” experience. The advantages of work sampling over traditional pencil and paper tests should be obvious. Because content is es¬sentially identical to job content, work sampling should be a better predictor of short-term performance and should minimize discrimination. Additionally, because of the nature of their content and the methods used to determine content, well-constructed work sample tests should easily meet EEOC “job-related” re¬quirements. The main disadvantage is the difficulty in developing good work samples for each job. Furthermore, work sampling is not applicable to all levels of the organization. It is often difficult to use for managerial jobs because it is hard to create a work sample test that can address the full range of man¬agerial activities.
Assessment Centers A more elaborate set of performance simulation tests, specifically designed to evaluate a candidate’s managerial potential, is adminis-tered in assessment centers. Assessment centers use procedures that incorporate group and individual exercises. Applicants go through a series of these exercises and are appraised by line executives, practicing supervisors, and/or trained psy-chologists as to how well they perform. As with work sampling, because these exercises are designed to simulate the work that managers actually do, they tend to be accurate predictors of later job performance. In some cases, however, the assessment center also includes traditional personality and aptitude tests.
Testing in a Global Arena Many of the standard selection techniques de-scribed in this text are not easily transferable to international situations. Where the decision has been made to recruit and employ host-country nationals, typi¬cal American testing will be acceptable in some countries but not in others. For example, although handwriting or graphology tests arc sometimes used in the United States, they are frequently used in France. In Great Britain, most psy-chological tests like graphology, polygraph, and honesty tests arc rarely used in employment. Accordingly, whenever American corporations prepare to do busi-ness abroad, their practices must be adapted to the cultures and regulations of the country in which they will operate.
The Comprehensive Interview Those applicants who pass the initial screen¬ing, application form, and required tests are typically given a comprehensive in-terview. The applicant may be interviewed by HRM interviewers, senior man-agers within the organization, a potential supervisor, potential colleagues, or some or all of these. In fact, in a company like Disney, applicants are interviewed by some 40 people.
The comprehensive interview is designed to probe areas that cannot be ad¬dressed easily by the application form or tests, such as assessing one’s motiva¬tion, ability to work under pressure, and ability to “fit in” with the organiza¬tion. However, this information must be job related. The questions asked and the topics covered should reflect the job description and job specification infor¬mation obtained in the job analysis. This means that not only the “obvious” il¬legal questions should be avoided, so too should inappropriate questions.
Are Interviews Effective?
A common question arises whenever we discuss interviews. That question is, “Are interviews effective for gathering accurate information from which selec-tion decisions can be made? The interview has proven to be an almost univer¬sal selection tool—one that can take a number of forms. It can revolve around a one-on-one encounter between the interviewer and the applicant (the traditional interview) or involve several individuals who interview an applicant at once (the panel interview). Interviews can follow some predetermined pattern wherein both the questions and the expected responses are identified (a situa¬tions interview). The interview can also be designed to create a difficult environment in which the applicant is “put to the test” to assess his or her con¬fidence levels. This is frequently referred to as the stress interview (see Ethical Issues in HRM).
Irrespective of how the interview is conducted, it is understood that few people get jobs without one or more interviews. This is extremely interesting, given that the validity of the interview as a selection tool has been the subject of considerable debate. Let’s look at the research findings regarding interviews.
Unfortunately for recruiters, interview situations aren’t always this cut and dried. Rather, many factors enter into the deliberation in determining if a candidate is a good fit for the organization. Although interviews are typically part of every job-search process, summaries of research on interviewing have concluded that the interview is expensive, inefficient, and often not job related, generated over the past few decades, still hold today. Let’s elaborate on a few of them.
When an interviewer has already seen the candidate’s resume, application form, possible test scores, or appraisals of other interviewers, bias may be in¬troduced. In such cases, the interviewer no longer relies on the data gained in the interview alone. Based on the data received prior to the interview, an image of the applicant is created. Much of the early part of the interview, then, be¬comes an exercise wherein the interviewer compares the actual applicant with the image formed earlier. In addition to interviewer bias is something that is di¬rectly related to the applicant’s actions. This is referred to as impression man¬agement. Impression management refers to one’s attempt to project an image that will result in receiving a favorable outcome. Thus, if an applicant can say or do something that is viewed favorably by the interviewer, then that person may be viewed more favorably for the position. For example, suppose you find out that the interviewer values workers who can work seven days a week, twelve-plus hours a day, if needed. Understandably, few if any jobs can sustain this work
A review of the research has generated the following conclusions about interviews:
• Prior knowledge about the applicant can bias the interviewer’s evaluation.
• The interviewer often holds a stereotype of what represents a “good” applicant.
• The interviewer often tends to favor applicants who share his or her own attitudes.
• The order in which applicants are interviewed often influences evaluations
• The order in which information is elicited influences evaluations.
• Negative information is given unduly high weight.
• The interviewer may make a decision as to the applicant’s suitability in the first few minutes of the interview.
• The interviewer may forget much of the interview’s content within minutes after its conclusion.
• Structured and welt-organized interviews are more reliable.
• The interview is most valid in determining an applicant’s organizational fit level of motivation, and interpersonal skills. schedule over a long period of time. But that’s the interviewer’s view nonetheless. Accordingly, making statements of being a workaholic, which conforms to this interviewer’s values, may result in creating a positive impression.
Interviewers often have a remarkably short and inaccurate memory. For example, in one study of an interview simulation, a 20 minute videotape of a se¬lection interview was played for a group of 40 interviewers. Hollowing the play¬ing of the tape, the interviewers were given a 20 question test. Although all the questions were straightforward and factual, the average number of wrong an¬swers was 10. The researchers’ conclusion? Even in a short interview, the aver¬age interviewer remembers only half of the information. However, taking notes during an interview has been shown to reduce memory loss. Note-taking is also useful—albeit possibly disconcerting for the interviewee—for getting more accurate information and for developing a clearer understanding of the appli¬cant’s fit by allowing follow-up questions to be asked.
Another research finding points out that the interview offers the greatest value as a selection device in determining an applicant’s organizational fit, level of motivation, and interpersonal skills. This is particularly true of senior man-agement positions. Accordingly, it is not unlikely for candidates for these posi-tions to go through many extensive interviews with executive recruiters, company executives, and even board members before a final decision is made. Similarly, where teams have the responsibility to hire their own members, it is common¬place for each team member to interview the applicant. One final issue about in¬terviews revolves around when the interviewer actually makes the decision. Early studies indicated that interviewers made their choice to hire or not hire a can¬didate within the first few minutes of the interview. While that belief was widely held, subsequent research docs not support these findings. In fact, this research showed that initial impressions may have little effect, unless that is the only in¬formation available for an interviewer to use.
So what sense can we make of these issues raised about interviews? And where might interviews be most appropriate? If interviews will continue to have a place in the selection decision, they appear to be more appropriate for the high-turnover jobs, and the less-routine ones like middle- and upper-level managerial positions. In jobs where these characteristics are important in determining suc-cess, the interview can be a valuable selection input. In non routine activities, especially senior managerial positions, failure (as measured by voluntary termi-nations) is more frequently caused by a poor fit between the individual and the organization than by lack of competence on the part of the individual. Inter-viewing can be useful, therefore, when it emphasizes the candidate’s ability to fit into the organization rather than specific technical skills.
The Realistic Job Preview
The primary purpose of any selection device is to identify individuals who will be effective performers. But it is’ not in an interviewer’s best interest to find good prospects, hire them, and then have them leave the organization. Therefore, part of selection should he concerned with reducing voluntary turnover and its asso-ciated costs. One device to achieve that goal is the realistic job preview (RJP). What is a realistic job preview? It may include brochures, films, plant tours, work sampling, or merely a-short script made up of realistic statements that ac¬curately portray the job. The key element in RJP is that unfavorable as well as favorable information about the job is shared. While the RJP is not normally treated as a selection device, it should take place during the interview and it has demonstrated effectiveness as a method of measuring job survival among new employees, so we’ve included it here.
Every applicant acquires during the selection process a set of expectations about the organization and about the specific job the applicant is hoping to be offered. It is not unusual for these expectations to he excessively inflated is a result of receiving almost uniformly positive information .about the organization and job during; recruitment and selection activities. Evidence suggests however, that interviewers may be erring by giving applicants only favorable information. More .specifically, research leads us to conclude that applicants who have been given a realistic job preview (as well as a realistic preview of the organizational hold lower and more realistic expectations about the job they will be doing and are better prepared for coping with the job and its frustrating elements. Realistic job previews also prepared to work best for those jobs that are mere attractive to the individual, resulting in lower turnover rates. Most studies demon¬strate that giving candidates a realistic job preview before offering them the job reduces turn over without lowering acceptance rates. Of course, it is not unrea¬sonable to suggest that exposing .in applicant to RJP may also result in the hir¬ing of a more committed individual.
Background Investigation
The next step in the process is to undertake background investigation of those applicants who appear to offer potential as employees. Background investigations are intended to verify that what was stated on the application form is correct and accurate information. This can include contacting former employers to confirm the candidate’s work record and to obtain there appraisal of his or her performance contracting other job related and personal references, verifying the educational accomplishments.
Based on a concept unqualified privilege, some courts have ruled that em¬ployers must be able to talk to one another about employees. Additionally, about half of the states have laws which protect employers from “good-faith refer¬ences. Accordingly, these discussions may be legal and may not invade one’s right to privacy so long as the discussion is a legitimate concern for the busi¬ness—and in some cases if the applicant has given permission for the background investigation to take place. For example, had a Midwest hospital learned that one of its anesthesiologist applicants had lost his license in there states for sub¬stance abuse, it clearly would not have hired him. N Moreover, some courts have also endorsed a company defense called the “After-Acquired Evidence Doctrine,” which has been used to significantly reduce the organization’s liability to dis-crimination claims. The essence of this controversial doctrine involves evidence that a company acquires after some action has been taken against an employee— like a termination. In cases where this defense has been used, the courts have ruled that even it discrimination did occur, the company may not be responsible because some sort of “resume fraud” existed. Of Lnurse, the company had to have made us hiring decision without this inform Union, and the employee’s action had to include some sort of misconduct that company polity indicates could be grounds for dismissal.4″
In conducting a background investigation, two methods can be used: the in¬ternal or the external investigation. In the internal investigation, HRM under¬takes the task of questioning former employers, personal references, and possi¬bly credit sources. Although this is a viable option, and one avidly used, unless the investigation process is handled thoroughly, little useful information may of found. On the other hand, the external investigation typically involves using a reference-checking firm. Although there is a greater cost associated with this investigation, such firms have a better track record of gathering pertinent infor-mation, as well as being better informed on privacy rights issues. However it » done, documentation is the important element. Should an employer be called upon to justify what has or has not been found, supporting documentation is invaluable.
Conditional Job Offer
If .1 job applicant has passed each step of the selection process so far, it is typically customary for a conditional job offer to be nude. Conditional job offers usually are made by an HRM representative (we’ll revisit this momentarily). In essence, what the conditional job offer implies is that it everything checks out okay- passing a certain medical, physical or substance abuse test – the conditional nature of the job offer will be removed and the offer will be permanent.
Medical/Physical Examination
The next-to-last step in the selection process may consist of having the applicant take a medical/physical examination. Physical exams can only be used as se-lection device to screen out those individuals who are unable to physically comply with the requirements of job, For example, firefighters are required to perform a variety of activities that require a certain physical condition. Whether it is climbing a ladder, lugging a four-inch water-tilled hose, or carrying in injured victim, these individuals must demonstrate that they are fit for the job. For jobs that require certain physical characteristics, then, the physical “examination may be job related. However, this may include a verv small proportion of jobs today. Should a medical clearance he required to indicate that the applicant is physi¬cally fit for the essential |ob elements, a company must be able to show that it is a job-related requirement. Failure to do so may result in the physical exami¬nation creating an adverse impact. Also, the a companv must keep in mind the Americans with Disabilities Act. Thus, even a valid physical examination may only be required after a conditional ]on offer. Having a physical disability may not be enough to exclude an individual from the job. Companies, as we men¬tioned in may be required to make reasonable accommodations for these individuals. Remember, however, that in doing so a company must show that the reasoning behind this requirement is |ob related.
Aside from its use as a screening tool, there is another purpose for the phys¬ical exam: to show that minimum standards of health exist to enroll in company health and life insurance programs. Additionally, a company may use this exam to provide base data in case of an employee’s future claim of injury on the job. This occurs, however, after one has been hired. In both cases, the exam is paid for by the employer.
One last event fits appropriately under medical examination: the drug test. many companies require applicants to submit to a drug test. Where in this process that test occurs is somewhat immaterial; the fact remains that failing an employment drup test may result in the rejection of an applicant.
job Offer
Those individuals who perform successfully in the preceding; steps are now con-sidered to be eligible to receive the employment offer? Who makes the final em-ployment offer? The answer, of course is, it depends-. for administrative pur-poses (processing salary forms, maintaining EEo Statistics, ensuring a statement exists which asserts that employment is not guaranted etc.) the offer typically
is made by an HRM representative, but that individual’s role should be only ad-ministrative. The actual hiring decision should be made by the manager in the
•department where the vacancy exists. While this might not be the situation in all organizations, the manager of the department should have this authority. First, the applicant will eventually work for this manager, and therefore a good fit be-tween boss and employee is necessary. Second, if the decision made is not correct, the hiring manager has no one else to blame. It’s also important to remember— as we previously mentioned that those finalists who don’t get hired deserve the courtesy of being notified that they didn’t get the job.
# Practice/ Application in the bank:
This organization the HR department perform job analysis,prepared job description,and also job specification.
These organization have every employee are prepared for job analysis.
The organization have some Corporate Strategic plan.
The organization have prepared manpower/human resource plan.
HR Department help to other department to prepare Manpower/human resources plan.
These methods are used to forecast human resources demand.
Trend Analysis.
Management judgments.
Computerized Forecasting.
Head of the HRD process the human resources planning of this organization.
The organization have some Succession plan for the top management.
The creative,trustworthy,International Courageous,responsive are the principles of recruitment of the organization.
Internal job watch this recruiting sources that I prefer most.
Head of the Department makes the final decision in the selection process.
When anybody request to select some one the organization faced problem.
The organization appoint some Consultant for selecting employees.
The organization have formal and informal Orientation program for the new employees.
Orientation,on hand training about the job this step are taken to anternalize the new employees in the organization.
Chapter -5
Developing Employees
5.1 Training:
5.1.1 Meaning:
Every organization, like Starbucks, needs to have well-adjusted, trained, and ex-perienced people to perform the activities that must be done. As jobs in today’s dynamic organizations have become more complex, the importance of employee education has increased. When jobs were simple, easy to learn, and influenced to only a small degree by technological changes, there was little need for em¬ployees to upgrade or alter their skills. But that situation rarely exists today. In¬stead, rapid job changes are occurring, requiring employee skills to be trans¬formed and frequently updated. In organizations, this takes place through what we call employee training.
Training is a learning experience in that it seeks a relatively permanent change in an individual that will improve the ability to perform on the job. We typically say training can involve the changing of skills, knowledge, attitudes, or behav¬ior. It may mean changing what employees know, how they work, their attitudes toward their work, or their interaction with their coworkers or supervisor. For our purposes, we will differentiate between employee training and employee development for one particular reason. Although both are similar in the meth¬ods used to affect learning, their time frames differ. Training is more present-day oriented; its focus is on individuals’ current jobs, enhancing those specific skills and abilities to immediately perform their jobs.26 For example, suppose you en¬ter the job market during your senior year of college, pursuing a job as a mar¬keting representative. Although you have a degree in Marketing, when you are hired, some training is in order. Specifically, you’ll need to learn the company’s policies and practices, product information, and other pertinent selling practices. This, by definition, is job-specific training, or training that is designed to make you more effective in your current job.
Employee development, on the other hand, generally focuses on future jobs in the organization. As your job and career progress, new skills and abilities will be required. For example, if you become a sales territory manager; the skills needed to perform that job are quite different from those required for selling the products. Now you will be required to supervise a number of sales representa-tives, requiring a broad-based knowledge of marketing and very specific man-agement competencies like communication skills, evaluating employee perform-ance, and disciplining problem individuals. As you are groomed for positions of greater responsibility, employee development efforts can help prepare you for that day.
5.1.2 Training Methods:
This section considers the choice of methods for employee training. With training objectives defined and learning principles in mind, the trainer must choose appro¬priate training methods and design the sequence of events in the training pro¬gram. Perhaps the first decision to be made is whether to conduct the training on the job or away from the job. In many cases, the decision is to do some of both Figure diagrams two training options. In each case, the right circle represents.
what an employee already knows when hired. The left circle is what he or she needs to know to be a fully effective employee. If the person was hired because he or she already possessed some relevant skill and knowledge, there will be overlap between the circles, and this content need not be trained. The remaining area of job skill is what the employee must learn. Some aspects of this can be learned in formally by on-the-job practice and informal coaching, whereas some should be taught formally. The formal instruction could be structured on-the-job off training, the-job classroom training, or a combination of both. Figure diagrams a job that is largely learned on the job, perhaps waiting tables in a pizza restaurant. Figure shows a job in which more off-the-job training is required-perhaps tax return preparation. The final increment in speed, confidence, and dealing with un usual nuances always happens with on-the-job practice, but many principles and laws must first be learned in the classroom.
5.1.2.1 On-the-Job Training
Formal on-the-job training (OJT) is contacted at the |work site and in the context of the actual job. The vast majority of all industrial training is conducted on the job, often by the trainee’s immediate superior or a nominated peer trainer. On-the-job training has several advantages:
1. Because the training setting is also the performance setting, the transfer of training to the job is maximized.
2. The costs of a separate training facility and a full-time trainer are avoided or reduced.
3. Trainee motivation remains high because it is obvious to trainees that what they are learning in relevant to the job.
4. Trainees Generally find on the job training more valuable then class room training.
A formal OJT program should be constructed as carefully as a classroom train¬ing program. Ideally, the supervisor or peer who acts as the trainer will be taught how to introduce and explain new tasks. The trainer should consider carefully the order in which to introduce new tasks and should use a written checklist and ob-jectives for each stage of the training process.43 Periodically, the trainer should give the trainee performance tests to ensure that the material is being mastered and to maintain trainee motivation through feedback. Job Instruction Train¬ing, a procedure developed to train new defense plant workers during World War II, is outlined in Table . This is a proven and systematic way to teach a new task.
On the negative side, OJT may suffer from frequent interruptions as the trainer or trainee is called away to perform other duties. Moreover, what many organiza-tions call OJT is really very little training at all. Employees are abandoned on the job and expected to pick up necessary skills as best they can. Often these employ¬ees are not informed about important but infrequent events (such as emergency procedures or annual maintenance) and may learn bad habits and unsafe proce¬dures from coworkers.
Table : Job Instruction Training Procedure
How to Get Ready to instruct
1. Have a timetable
– How much skill you expect and when
2. Break down the job
– List the Important steps
– Pick out the key points
3. Have everything ready
– The right equipment, material, and supplies
4. Have the workplace properly arranged.
– As you would expect the worker to maintain it.
How to Instruct
Step 1 : Prepare the Worker
a. Put the worker at ease
b. Find out what he or she knows
c. Arouse Interest
d. Place the worker correctly
Step 2 : Present the Operation
a. Tell
b. Show
c. Explain
d. Demonstrate Step 3 : Try out Performance
a. Have the worker perform the operation.
b. Have the worker explain the key points.
c. Correct errors.
d. Reinstruct as needed.
Step 4 : Follow-up
a. Put the worker on his own.
b. Encourage questioning.
c. Check frequently.
d. Taper off assistance.
5.1.2.2 Off-the-Job Training
Off-the-job training is conducted in a location specifically designated for training. It may be near the workplace or away from work, at a special training center or a resort. Conducting the training away from the workplace minimizes distractions and allows trainees to devote their full attention to ( material being taught However, off-the-job training programs may not provide as much transfer of training to the actual job as do on-the-job programs.
Many people equate off-the-job training with the lecture method, but in fact a very wide variety of methods can be used. Table lists a number of potential training methods and activities.
Table : Some Off-the-Job Training Methods and Activities
Action planning – Often a closing activity asking participants to specify of set goals about exactly what they will do differently back on the job.
Behavior modeling training – Use of videotape to demonstrate the steps in a supervisory activity such as conducting a disciplinary Interview), followed by role-played skill practice and feedback.
Behavioral simulation-Large-scale multiperson role-play, noncomputerized business game.
Brainstorming-Creative Idea-generation exercise in which no criticism as allowed.
Business game-Computerized business simulation that requires participants to make decisions about strategy and investments and then provides financial results based on the decisions.
Buzz group- Small-group discussion of several minutes duration on an assigned topic.
Case study from a non-paragraph vignette to a fifty page Hafvard-style case.
Demonstration
Expenditure exercise
Field trip
Group discussion
Guest speaker
Guided teaching- Drawing from the group the points the lecturer otherwise would make him or herself
Ice breaker Get-acquainted exercise.
Information search- Asking trainees to locate the answers to questions in the training materials of manuals provided.
Inter group exchange Small groups share their ideas or findings with another group.
Learning game- Competition between teams in a quiz fomat
Lecture
Mental Imagery- Asking participants to close their eyes and visualize or recall something or engage in mental rehearsal of a physical or interpersonal skill.
Outdoor leadership training- Team activities that may include hiking, rope courses or other physical challenges along with problem-solving activities.
Pair and trio discussion tasks
Panel discussion
Problem-solving activities
Role-Play
Self-assessment instrument or quiz An example is a conflict resolution-style inventory.
Team building- A series of group activities and sometimes surveys used to develop team skills and role clarify in a team of people who must work together closely on the job.
Videotapes- Can be used alone but are most effective if embedded in discussion and practice.
5.2 Developing:
5.2.1 Meaning:
Employee development, by design, is more future oriented and more concerned with education than employee job-specific training. By education we mean that employee development activities attempt to instill sound reasoning processes— to enhance one’s ability to understand and interpret knowledge—rather than im-parting a body of facts or teaching a specific set of motor skills. Development, therefore, focuses more on the employee’s personal growth. Successful employ-ees prepared for positions of greater responsibility have analytical, human, con-ceptual, and specialized skills. They are able to think and understand. Training, per se, cannot overcome an individual’s inability to understand cause-and-effect relationships, to synthesize from experience, to visualize relationships, or to think logically. As a result, we suggest that employee development be predominantly an education process rather than a training process.
It is important to consider one critical component of employee development: all employees, regardless of level, can be developed. Historically, development was reserved for potential management personnel. Although it is critical for in-dividuals to be trained in specific skills related to managing—like planning, or-ganizing, leading, controlling, and decision making—time has taught us that these skills are needed by nonmanagerial employees as well. The use of work teams, reductions in supervisory roles, allowing workers to participate in setting the goals of their jobs, and a greater emphasis on quality and customers have changed the way developing employees is viewed. Accordingly, organizations now require new employee skills, knowledge, and abilities. Thus, as we go through the next few pages, note that those methods used to develop employees in general are the same as those used to develop future management talent.
5.2.2 Method:
Some development of an individual’s abilities can take place on the job. We will review several methods, three popular on-the-job techniques (job rotation, assistant to positions, and committee assignments) and three off-the-job methods (lecture courses and seminars, simulation exercises, and outdoor training).
1. Job Rotation:
Job rotation involves moving employees to various positions in the organization in an effort to expand their skills, knowledge, and abilities. Job rotation can be either horizontal or vertical. Vertical rotation is nothing more than promoting a worker into a new position. In this chapter, we will empha¬size the horizontal dimension of job rotation, or what may be better understood as a short-term lateral transfer.
Job rotation represents an excellent method for broadening an individual’s exposure to company operations and for turning a specialist into a generalise. In addition to increasing the individual’s experience and allowing him or her to absorb new information, it can reduce boredom and stimulate the development of new ideas. It can also provide opportunities for a more comprehensive and reliable evaluation of the employee by his or her supervisors.
2. Assistant-To Positions:
Employees with demonstrated potential are some¬times given the opportunity to work under a seasoned and successful manager, often in different areas of the organization. Working as staff assistants or, in some cases, serving on special boards, these individuals perform many duties under the watchful eye of a supportive coach (see Workplace Issues). In doing so, these employees get exposure to a wide variety of management activities and are groomed for assuming the duties of the next higher level.
3. Committee Assignment:
Committee assignments can provide an opportunity for the employee to share in decision making, to learn by watching others, and to investigate specific organizational problems. When committees are of a tem¬porary nature, they often take on task-force activities designed to delve into a particular problem, ascertain alternative solutions, and make a recommendation for implementing a solution. These temporary assignments can be both interest¬ing and rewarding to the employee’s growth.
Appointment to permanent committees increases the employee’s exposure to other members of the organization, broadens his or her understanding, and pro-vides an opportunity to grow and make recommendations under the scrutiny of other committee members. In addition to the on-the-job techniques described ; above, we will briefly discuss three of the more popular ones: lecture courses and seminars, simulations, and outdoor training.
4. Lecture Courses and Seminars:
Traditional forms of instruction revolved /around formal lecture courses and seminars. These offered an opportunity for individuals to acquire knowledge and develop their conceptual and analytical abilities. For many organizations, they were offered in-house by the organiza¬tion itself, through outside vendors, or both.
Today, however, technology is allowing or significant improvements in the training field. A growing trend at companies is to provide lecture courses and seminars revolving around what we call distance learning. Through the use of digitized computer technology, a facilitator can be in one location giving a lecture, while simultaneously being transmitted over fiber-optic cables, in real time, to several other locations. For example, the Memphis, Tennessee-based specialty chemicals manufacturer, Buckman Laboratories, uses distance learning to tram all its employees. With more than J ,200 employees located in 80 different countries, the opportunity to receive training has been made more cost effective and more “learner” friendly because of distance learning.
Over the past few years, we’ve witnessed an expansion of lecture courses and seminars for organizational members. This has been in the form of return¬ing to college classes, either for credit toward a degree or by way of “continuing education” courses. Either way, the outcome is the same. Employees are taking the responsibility to advance their skills, knowledge, and abilities in an effort to enhance their value addedness to their current, or future employer.
5. Simulations:
Simulations were previously cited in Exhibit 8-5 as a training technique. While critical in training employees on actual work experiences, simulations are prob-ably even more popular for employee development. The more widely used sim-ulation exercises include case studies, decision games, and role plays.
The case-study-analysis approach to employee development was popularized at the Harvard Graduate School of Business. Taken from the actual experiences of organizations, these cases represent attempts to describe, as accurately as pos-sible, real problems that managers have faced. Trainees study the cases to de-termine problems, analyze causes, develop alternative solutions, select what they believe to be the best solution, and implement it. Case studies can provide stim-ulating discussions among participants, as well as excellent opportunities for in-dividuals to defend their analytical and judgmental abilities. It appears to be a rather effective method for improving decision-making abilities within the constraints of limited information.
Simulated decision games and role-playing exercises put individuals in the role of acting out supervisory problems. Simulations, frequently played on a com-puter program, provide opportunities for individuals to make decisions and to witness the implications of their decisions for other segments of the organiza¬tion. Airlines, for instance, find that simulations are a much more cost-effective means of training pilots — especially in potentially dangerous situations. And should the trainee’s decision be a poor one, there typically would be no adverse effects on the learner — other than an explanation of why his or her choice was not a good one. Role playing allows the participants to act out problems and to deal with real people. Participants are assigned roles and are asked to react to one another as they would have to do in their managerial jobs.
The advantages of simulation exercises are the opportunities to attempt to “create an environment” similar ,,to real situations managers face, without the high costs involved should the actions prove to be undesirable. Of course, the disadvantages are the reverse of this: it is difficult to duplicate the pressures and realities of actual decision making on the job, and individuals often act differ-ently in real-life situations than they do in a simulated exercise.
6. Outdoor Training:
A trend in employee development has been the use of out¬door {sometimes referred to as wilderness or survival) training. The primary focus of such training is to teach trainees the importance of working together, of gelling as a team. Outdoor training typically involves some major emotional and phys¬ical challenge. This could be white-water rafting, mountain climbing, paint-ball games, or surviving a week in the “jungle.” The purpose of such training is to see how employees react to the difficulties that nature presents to them. Do they face these dangers alone? Do they “freak”? Or are they controlled and success¬ful in achieving their goal? The reality is that today’s business environment does not permit employees to stand alone. This has reinforced the importance of work¬ing closely with one another, building trusting relationships, and succeeding as a member of a group.
5.3 Training Evaluation:
It is easy to generate a new training program, but if the training effort is not eval-uated, it becomes possible to rationalize any employee-training efforts. It would be nice if all companies could boast returns on investments in training as do Mo-torola executives, who claim they receive $30 in increased productivity for every dollar spent on training, as well as a 139 percent increase in sales productiv¬ity. But such a claim cannot be made without properly evaluating training.
Can we generalize how training programs are typically evaluated? The following is probably generalizable across organizations: Several managers, representatives from HRM, and a group of workers who have recently completed a training program are asked for their opinions. If the comments are generally positive, the program may get a favorable evaluation and the organization will continue it until someone decides, for whatever reason, it should be eliminated or replaced.
The reactions of participants or managers, while easy to acquire, are the least valid; their opinions are heavily influenced by factors that may have lit¬tle to do with the training’s effectiveness — things like difficulty, entertainment value, or personality characteristics of the instructor. However, trainees’ reac¬tions to the training may in fact provide feedback on how worthwhile the par¬ticipants viewed the training. Beyond general reactions, training must also be evaluated in terms of how much the participants learned, how well they are using their new skills on the job (did their behavior change?), and whether the training program achieved its desired results (reduced turnover, increased cus¬tomer service, etc.).
Performance- based Evaluation Measures
We’ll explore three popular methods of evaluating training programs. These are the post-training performance method, the pre-post-training performance method, and the pre-post-training performance with control group method.
Post-Training Performance Method:
The first approach is referred to as that post-training performance method. Participants’ performance is measured after attending a training program to determine if behavioral changes have been made. For example, assume we provide a week-long seminar for HRM recruiters am structured interviewing techniques. We follow up one month later with each par¬ticipant to see if, in fact, the techniques addressed in the program were used, and how. If changes did occur, we” may attribute them to the training. But caution must be in order, for we cannot emphatically state that the change in behavior was directly related to the training. Other factors, like reading a current HRM journal or attending a presentation at a local Society of Human Resource agreement, may have also influenced the change. Accordingly, the performance method may overstate the benefits of training.
Pre-Post-Training Performance Method:
In the pre-post-training perform¬ance method, each participant is evaluated prior to training and rated on actual job performance. After instruction—of which the evaluator has been kept unaware—is completed, the employee is reevaluated. As with the post-training performance method, the increase is assumed to be attributed to the instruction. However, in contrast to the post-training performance method, the pre-post-performance method deals directly with job behavior.
Pre-Post-Training Performance with Control Croup Method:
The most sophisticated evaluative approach is the pre-post-training performance with con¬trol group method. Under this evaluation method, two groups are established and evaluated on actual job performance. Members of the control group work on the job but do not undergo instruction. On the other hand, the experimen¬tal group is given the instruction. At the conclusion of training, the two groups arc reevaluated. If the training is really effective, the experimental group’s per¬formance will have improved, and its performance will be substantially better than that of the control group. This approach attempts to correct for factors, other than the instruction program, that influence job performance.
Although a number of methods for evaluating training and development pro-grams may exist, these three appear to be the most widely recognized. Further-more, the latter two methods are preferred, because they provide a stronger meas-ure of behavioral change directly attributable to the training effort.
# Practice/Application in the bank:
Strengthening current skill and developing future prospects it is the policy regarding training and development.
The organization determine training needs for its employees.
Research Insight the measure used for determining training needs.
This organization have evaluate the effectiveness of training program.
Performance appraisal after training this methods are used in evaluating training effectiveness.
Planning Scheduling and Implementing training and development uses making for the training and development.
Chapter -6
Performance Appraisal
6.1 Meaning of PA :
Once the employees have been selected trained and motivated, they are then appraised for their performance. A is the step where the management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with employees and to remedy them.
Organizations require consistent levels of high performance from their employees in order to survive in a highly competitive environment. Most organizations have some forms of performance appraisal of their employees. Evaluation of employee is one of the most universal practices of management. It is applied formally or informally to all employees. It means many things to many people. It is a measurement process; it is an exercise in observation and judgment; it is a feedback process. It is a control device, which is used by the organization to accomplish their predetermined goals. Performance refers to an employee’s accomplishment of assigned tasks. Performance means doing a job effectively and efficiently.
PA is a process of evaluating an employee’s performance of a job in terms of its requirements. Performance appraisal is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance. It provides the basis for assessment of employee contributions, coaching for improved performed and distribution of economic rewards. It refers to the outcome of the behavior of employees. Thus performance appraisal means deciding the value of work done by an individual. It is a process by which organizations evaluate individual job performance.
6.2 Method of PA:
The appraisal process begins with establishment of performance standards in accordance with the organization’s strategic goals. Appraisal systems require performance standards, which serve as benchmarks against which performance is measured. To be effective standards should relate to the desired results of each job. Job analysis uncovers specific performance standards by analyzing the performance of current employees. To hold employees accountable, a written record of the standards should exist and employees should be advised of those standards before the evaluation occurs. If performance standards are not job -related, the evaluation can lead to inaccurate or biased results; harming the mangers’ relationship with their employees and violating equal employment opportunity rulings.
Performance evaluation also requires reliable performance measures, the ratings used to evaluate performance. To be helpful, they must be easy to use, be reliable and report on the critical behaviors that determine performance. Performance measures also may be subjective or objective.
Once performance standards are set, it is necessary to communicate these expectations; it should not be part of the employees job to guess what is expected of them. Employees can be involved in setting standards. It is important to note that communication is a two-way street: mere transference of information from the supervisor to the employees regarding expectations is not communication. To make communication effective, feedback is necessary from the subordinates to the manager.
The next step in the appraisal process is the measurement of performance. To determine, what actual performance is, it is necessary to acquire information about it. \VE should be concerned with how we measure and what we measure. Four common sources of information are frequently used by managers regarding how to measure actual performance: personal observation, statistical reports, oral reports, and written reports.
The fourth step is the comparison of actual performance with standards. The point of this step is to note deviations between standard performance and actual performance so that we can proceed to the fifth step in the process- the discussion of the appraisal with the employees.
A necessary requirement of the appraisal process is employee feedback through an evaluation interview. Evaluation interviews are performance review sessions that give employees essential feedback about their past performance or future potential. Without feedback, improvement in human behavior is not likely and the HR department will not have accurate records in its HR information system on which to base decisions ranging from job design to compensation. The evaluator may provide this feedback through several approaches: tell and sell, tell and listen, and problem solving. Managers must create a supportive environment to put employee at ease. Presenting an accurate assessment to the employee is a challenging task. The discussion of the appraisal can have negative as well as positive motivational consequences.
The final step in the appraisal is the identification of corrective action where necessary. Corrective actions can be of two types: one is immediate and deals with symptoms, and the other is basic, which deals with causes.
# Practice/Application in the bank:
There is some formal performance appraisal program in this organization.
In this organization one year frequently employees performance is evaluated.
Appraisal by Immediate boss evaluates employees performance.
Essay Appraisal performance evaluation methods are used in this Organization.
In this organization the appraisal serve Betterment both for the employees and the organization.
7.1 Compensation System Meaning:
An organization exists to accomplish specific goals and objectives. The individuals hired by the organization have their own needs. One is for money, which enables them to purchase a wide variety of goods and services available in the marketplace. Hence there is a basis for an exchange: The employee offers specific behaviors desired by the organization to meet its goals and objectives in return for money, goods, and/or services. Taken together, the money, goods, and/or ser¬vices the employer provides employees constitute the employer’s compensation system.
The system that an organization uses to reward employees can play an impor¬tant role in the organization’s efforts to gain a competitive advantage and to achieve its major objectives. Compensation systems should do the following:
• Signal to employees (and others) the major objectives of the organization such things as quality, customer focus, teamwork, and other goals—by emphasizing these through compensation.
• Attract and retain the talent an organization needs.
• Encourage employees to develop the skills and abilities they need.
• Motivate employees to perform effectively.
• Support the type of culture (e.g., entrepreneurial) the company seeks to engender.
Ideally, a reward system should align individual objectives with important strategic goals of the organization, but for most organizations, the reality falls far short of (his ideal The design and implementation of a compensation system con-stitute one of the most complex activities for which human resource managers are responsible. The intricacy of compensation inspired the observation by one re¬searcher that “reward systems are one of the most prominent and frequently dis¬cussed features of organizations.”3 The following are some of the factors that con¬tribute to this complexity:
• While other aspects of human resource systems (e.g., training, career man-agement, appraisal systems, and quality-of-work-life programs) are important to some employees, compensation is considered crucial by virtually everyone.
• One goal of a compensation system is to motivate employees, yet there is tremendous variation in the value different individuals attach to a specific reward or package of rewards. Further, an individual’s values also may change over time.
• The jobs in most organizations involve an almost endless variety of knowledge, skills and abilities and are performed in situations with a wide range of demands.
• Compensation systems consist of many elements in addition to pay for time worked; these components must be coordinated to work together.
• Employee compensation is a major cost of doing business—up to 80 percent for service firms—and can determine the competitiveness of a firm’s products or services.
• A number of federal and state regulations affect compensation systems.
• Employees, either directly or through collective bargaining arrangements, may desire to participate in the determination of compensation.
• The cost of living varies tremendously in different geographic areas, an important consideration for firms with multiple locations..
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