Human Resources Management: Performance Management and Appraisal

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HUMAN RESOURCES MANAGEMENT

22MBA21

MODULE 3
Performance Management and
Appraisal
Syllabus
• Performance Management and Appraisal: Objectives of
Performance Management, Performance Management and
Performance Appraisal, Common Problems with Performance
Appraisals, Performance Management Process, Types of
Performance Rating Systems, Future of Performance Management.
• Compensation and Benefits: Introduction, Definitions, Total
Compensation, Total Rewards System, Forms of Pay, External and
Internal Factors, Establishing Pay Rates, Employee Benefits.
• Industrial Relations: Decent Workplace, International Labor
Organization, Industrial Relations, The Objectives of Industrial
Relations, Approaches of Industrial Relations Systems, The Actors in
Industrial Relations, Indian Context, Industrial Relations and Human
Resource Management.
Meaning of Performance management

Performance management frameworks are


designed with the objective of improving both
individual and organizational performance by
identifying
*Performance requirements,
*Providing regular feedback and
*Assisting the employees in their career
development.
Need and Importance of Performance
Management
• To give information about the performance of
employees on the job
• To provide information about amount of
achievement and behavior of subordinate in
their job
• To provide information about an employee’s
job-relevant strengths and & weaknesses
• To provide information so as to identify
shortcoming in employee
Objectives of Performance Management

• To enable the employees towards


achievement of superior standards of work
performance.
• To help the employees in identifying the
knowledge and skills.
• Boosting the performance of the employees
by encouraging employee empowerment,
motivation and implementation of an effective
reward mechanism
Performance Management and
Performance Appraisal
• Performance management is a much broader
term in comparison with performance
appraisal.
• Performance management emphasizes on
front end planning instead of looking
backward unlike
• Performance appraisals and the focus is on
ongoing dialogue instead of appraisal
documents and ratings
Performance Management and
Performance Appraisal
Common Problems with Performance Appraisals

1. Errors in Ratings

2.Incompetence

3.Negative Approach

4.Lack of Knowledge

5.Resistance
Performance Management Process
Types of Performance Rating Systems
• General Appraisal
• 360-Degree Appraisal
• Employee Self-Assessment
• Manager Performance Appraisal
• Project Evaluation Review
• Sales Performance Appraisal
Future of Performance Management.

1. More focus on teams, fewer individual goals


2. More collaboration on strategy, less rigid
cascading of goals
3. More cross-departmental collaboration
4. More regular, multi-perspective feedback,
fewer annual performance reviews
5. More continuous, self-directed learning for
all, less focus on training catalogs
Compensation and Benefits
Introduction, Definitions, Total Compensation,
Total Rewards System, Forms of Pay, External
and Internal Factors, Establishing Pay Rates,
Employee Benefits.
Compensation and Benefits
Introduction:

Compensation covers people's direct pay, their


salary.

Benefits cover employees' indirect pay, things


like health insurance and social benefits(as paid
vacation, insurance, maternity leaves).
Definitions
” Compensation is a comprehensive term which
includes wages, salaries and all other allowance
and benefits.”

Compensation are monetary and non-monetary


benefits design to attract, retain and motivate
workers of the organization.
Importance of compensation and benefits

• Companies hire people individual to achieve


their organizational goals and people join
companies to earn money & build their career.

• One of the biggest factors why people join


companies in the compensation and benefits,
salaries, perks, incentives etc. which is given
to them
Total reward system
Total rewards is the combination of benefits,
compensation and rewards that employees
receive from their organizations.

This can include wages and bonuses as well as


recognition, workplace flexibility and career
opportunities
Types of Pay
External and Internal Factors
Establishing Pay Rates
Establishing pay rates involves five steps:
*Evaluating jobs,
*Developing pay grades
*Conducting a salary survey
*Using wage curves, and
*Fine-tuning pay rates.
Employee Benefits
Employee Benefits can be termed as non-cash
compensation which is given to the employee.
These benefits are given to the employee apart
from salaries and wages.
These are also known as fringe benefits that are
offered with the intention to attract and retain
employees.
Contd…
1. Paid leave, sick leaves, and vacation days
2. Life insurance
3. Health insurance
4. Dental insurance
5. Vision insurance
6. Gym memberships or discounts
7. Wellness programs
8. Childcare benefits
9. Employee recognition programs
10 Relocation assistance
• The Objectives of Industrial Relations,
Approaches of Industrial Relations Systems,
The Actors in Industrial Relations, Indian
Context, Industrial Relations and Human
Resource Management.
Industrial Relations
Decent Workplace:
Concerned with the availability of employment
in conditions of freedom, equity, security, and
human dignity.

It is a multidimensional concept introduced by


the International Labour Office (ILO) in 1999
The International Labour Organization (ILO)

The International Labour Organization (ILO) is a


United Nations agency dealing with labour
issues, particularly international labour
standards, social protection, and work
opportunities for all.
Objective
• To develop and to have effective standards,
fundamental principles, and fundamental rights
at work.
• To ensure that men and women have equal
access to decent work while enhancing
opportunities for the same.
• To magnify the coverage and effectiveness of
social protection for everyone.
• To strengthen social dialogue.
Structure

• International Labour Conference

• The Governing Body

• The International Labor Office


Functions
• It adopts international labour standards.
• It also controls the implementation of its
conventions.
• It aids the member states in resolving their social
and labour problems.
• It advocates and works for the protection of
Human rights.
• It is responsible for the research and publication
of information regarding social and labour issues.
Industrial Relations
“Industrial Relations” refers to all types of
relations between employers and workers, be
they at national, regional or company level;
and
Dealings with social and economic issues, such
as wage setting, working time and working
conditions.
Approaches to Industrial Relations

Approach 1. Unitary:
The basic assumption in unitary approach is that
everyone benefits when the focus is on common
interest and promotion of peace & harmony.
Approach 2. Pluralistic

• The basic emphasis of pluralistic approach is


that an organization is a coalition of interested
groups headed by the top management which
serves the long-term needs of the
organization
• As a whole by paying due concern to all the
interest groups affected — employees,
shareholders, consumers, and society.
Approach 3. Marxist

• Like pluralistic approach, marxist approach


also treats that labour and management
conflict is inevitable.
• However, this approach differs from the earlier
one so far as the cause of conflict is
concerned;
• It describes that the conflict is the product of
the capitalist society which is based on
classes.
Approach 4. Systems

According to Dunlop, industrial relations system is


a distinctive subsystem of society on the same
logical plane as an economic system.

Like the economic system, it is an abstraction.

There are no actors whose activity is confined


solely to the industrial relations or economic
sphere.
Approach 5. Socialistic Approach

• Socialistic approach considers workers’


participation in management as an important
factor in the development and perfection of
socialistic democracy.

• This ensures fullest decentralization and


participation in management as multi-
dimensional program for socialist
construction.
Approach 6. Strategic Management

• Strategic management approach to industrial


relations is comparatively new developed in
1980s in USA.
• This approach puts question about the
relevance of the two institutions of IR — trade
unions and collective bargaining in the
changed situation.
The Actors in Industrial Relations

1. Role of Government
2. Role of Trade Union
3. Role of Employers
4. Role of Employee
Role of Government

• Governments try to regulate the relationship


between workers and employers, monitoring
both groups and trying to bring them together.

• This relationship is enforced and maintained


by labor courts, labor tribunals, Wage
Commissions, investigation and inquiry
commissions, etc.
Role of Trade Union

• Sectional Bargainers
• Partners in Social Control
Role of Employers

• Greater attention to empowerment, rather


than exploitation of human resources.
• Involve workers through small group
activities, etc. and empowering them.
Role of Employee

Employees generally see industrial relations as a


means to improve
• Employment conditions
• Challenge complaints
• Exchange opinions and ideas
with management
• Participate in the organization’s decision-
making process.
Industrial Relations and Human Resource Management

• Human resource management focuses on the


ways of effectively managing the human
resources in an organization
and
• Industrial relations is about establishing good
relationships between employers and
employees.
Contd…
• Industrial relations is a part of human resource
management.
• There are four parties involved in IR such as
the employees, employers, trade unions, and
government.
• In HR, there are mainly two parties involved
such as the employees and employers.
Module 3 Ends…

Thank You!

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