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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

Introduction:

The impact of activities associated with the management of people in firms (HRM) on organizational performance has become one of the major topics (or even the dominant topic) in HR research. Starting with the groundbreaking study of Huselid (1995), which claims that HRM has a substantial impact on financial performance, Many researches has shown that HRM positively impacts organizational performance in the last 20 years conclude that the influence of HRM on performance is and managerially relevant. Most of the theoretical perspectives have provided macro-frameworks, clarifying the determinants of HRM and their consequences at firm level, such as resource dependence theory, institutional theory, and resource-based view. However, empirical studies linking HRM and performance at company-level, and macrolevel theories do not provide theoretical understanding of how HRM works (i.e. the underlying mechanisms), nor do they provide relevant managerial information (with regard to workforce scorecards) on how human resources (employees) within organizations add value in terms of financial performance.Moving on to a possible broader framework linking HRM and outcomes, the starting point should be the recognition that the distinctive feature of HRM is its assumption that improved performance is achieved through the people in the organization. Hence, a better understanding of the role of employees in linking HRM to firm performance is needed both from a theoretical and practitioner viewpoint. Lower-range specific behavioral theories rooted in organizational behavior (OB) and organizational psychology have been integrated in the HRM-performance linkage to explain the underlying attitudinal and behavioral processes. One of the original HRM models used to explain the underlying processes is the Behavioral Perspective, which states that employment activities are adopted to elicit and control employee behaviors which contribute to overall organizational performance. Moreover, employee attitudes and behaviors have been increasingly included in explanatory models of the link between HRM and performance Employers and employees both benefit from HRM (so-called mutual gains perspective). HRM pays off in terms of organizational performance, but has no or even a negative impact on employee interests (socalled conflicting outcomes perspective). The emerging importance of employee well-being in explanatory models of the link between HRM and performance on the one hand and the importance of employee well-being as an important outcome in its own right on the other, we Prior reviews of empirical research on the HRM - performance linkage as well as reviews of empirical research on the effects of HRM on employee well-being at work have provided us with useful information. HRM is positively related to performance; on the other hand, HRM, Employee Well-being and Organizational Performance found that it is difficult to draw any definitive conclusions about the effects of HRM on employee wellbeing. As far as I know, an updated review in which evidence on linkages between HRM, employee wellbeing, and organizational performance is searched and synthesized in a critical manner has not yet been conducted. Hence, the current study provides a review of quantitative studies relating HRM, employee well-being, and organizational performance. The contribution of this review is to examine which of the competing theoretical perspectives, mutual gains or conflicting outcomes, provides a better fit for the role of employee well-being. By reviewing studies on the effects of HRM on employee well-being and performance at the same time, this study contributes to further understanding on the effects of HRM on multiple stakeholders by including management as well as employee-centered outcomes. This is an important issue as the practical implications of these two lines of thought differ. Evidence for mutual gains implies that adopting HRM activities increases performance and at the same time increases employee well-being. However, if the conflicting outcomes perspective is more valid, HRM activities positively affect organizational performance, but have a detrimental effect on employee well-being. To

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE start with, first we clarify our approach to the concepts of employee well-being, HRM and organizational performance.

Every manager, no matter what his or her role, knows that exceptional employee performance is critical in today's world. The purpose of this paper is to discuss the need for human resource managers to move beyond HR's traditional performance management approaches and partner with line managers to remove barriers to exceptional employee performance that exist in organizational work environments. 1.2 Origin of the Report

This report is a study on the effect of Human Resource Management on employees Performance .The report is outcome of this thesis program studied with different aspects. The presentation and submission of this report is the fundamental Requirement for the fulfillment of the Bachelor of business Administration (BBA) course curriculum of business faculty, ASA University Bangladesh (ASAUB)

1.3 Background of the Report

Human resource Management (HRM) has been an important area of reacherch practice. The purpose of HRM policies is to improve the better management practices. In a widely cited paper, (Sriyen, 1997) found human resource management as the process of increasing knowledge, skills, and the capacity of people in the organization. In economic termsm it could be described as the accumulation of human capital and its effective investment in the development of an economy. In political terms, human resource prepares people for adult participation in the political process particularly as citizen in a democracy.

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

1.4 Rationales of the Study

The rapid pace of globalization over the last few decades has added new dimensions to the concept of Human Resource in the context of the Organizational policies. Organizations especially the private sector, made significant progress and growth in terms of significant market share with the help of Human Resource Management. Realizing the present condition, companies. This study is important for both in academic point of view and for the professional. Moreover, organization is very much curious about the analysis of Supply Chain Success and inventory planning. Performance measurement is also important for the organizational view. So this is important for both sides to get the idea of inner side of operation. I have tried to find out the supply chain most rationally of SQUARE Pharmaceuticals Ltd.

1.5 Objectives of the Report

This report examines the corporate social responsibility in the area of manufacturing companies. It deals with early history of corporate social responsibility, Company mission, social accounting system and social audit. Besides these, it has some special objectives. These are: To get an idea about HRM role in organizational development. Evaluate transparency and accountability of corporate as well as public entities. To learn HRM functions. To learn importance and contribution of HRM. To know standard HRM practices followed by the organizations

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

1.6 Methodology of the study

According to the instruction of my supervisor, I would like to prepare informative report. So the report is descriptive in nature. Discovery is the goal of this exploratory, qualitative research; thus, the collection of data was structured to meet this goal. It was decided that semi structured interviews would provide the best means of identifying and describing the variety of thoughts and feelings employees have about HRM. Semi structured interviews provide some structure to the interview process while encouraging interviewees to freely discuss the phenomenon of interest in their own words.

a) Data Sources: In order to make the report more meaningful and presentable, two sources of data and information have been used widely.

The Primary Sources are as follows: Relevant file study as provided by the officers concerned. Communicate with other respective personnel

The Secondary Sources are as follows: Thesis report of different PHD holders. Study related books and journals.

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Web sites

1.7 Limitations of the Study

To prepare a report on the topic like this in a short duration is not easy task. In preparing this report some problems and limitations have encountered which are as follows: The main constraint of the study was insufficiency of information, which was required for the study. Most of the data are collected from secondary sources. So, the information may irrelevant due to time constrains. I have analyzed ten different thesis reports of different PHD holders. But all of these reports are not in the current year because of its unavailability. Due to time limitation, many of the aspects are not discussed in the present report. Lack of opportunity to access to internal data. I was unable to contract with higher authority of the company like Directors or Chairman to know their opinion.

Scope of this study

As I have got the chance to administrate a questionnaire based survey, Questions is constructed to get the appropriate data to compare between expected service and perceived service. The study focuses only on the customers SJIBL, M Br.. So, the findings of the study represent this branch only. The study focuses on the service gap through different dimensions of SERVQUAL model. It also opens a scope to understand the present status of service delivery quality.

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

Chapter Two Literature Review


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Human Resource Management Human Resource Management is based on ideas and techniques developed to enhance worker motivation, productivity and performance. >>The HRM model emphasizes: >> The need to search for new ways of working >>The central role of managers in promoting change >>The treatment of workers as individuals rather than part of a collective workforce >>The encouragement of workers to consider management as 'partners' rather than as opponents - 'us and us', rather than 'us and them'

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers. HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

We often hear the term Human Resource Management, Employee Relationsand Personnel Management used in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. In this article, we look at the question what is HRM? by giving a broad overview of the topic and introducing the readers to the practice of HRM in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the art and science of HRM is indeed complex. We have chosen the term art and science as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required. As outlined above, the process of defining HRM leads us to two different definitions. The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and Management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier. The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the employment relationship fulfilling for both the management and employees.These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially workforce centered whereas human resource management is resource centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.Whatever the definition we use the answer to the question as to what is HRM? is that it is all about people in organizations. No wonder that some MNCs (Multinationals) call the HR managers as People Managers, People Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE managing employee expectations vis--vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives.

Human Resource Management is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of organization-government, business, education, health recreation, or social action. Getting and keeping good people is critical to the success of every organization, whether profit or nonprofit, public or private. Those organizations that are able to acquire, develop, stimulate, and keep outstanding workers will be both effective and efficient. Those organizations that are ineffective or inefficient risk the hazards of stagnating or going out of business. Survival of an organization requires competent managers and workers coordinating their efforts toward an ultimate goal. While successful coordination cant guarantee success, organizations that are unsuccessful in getting such coordination from managers and workers will ultimately fail. Human resource management is the set of organizational activities directed at attracting, developing and maintaining an effective workforce. Human resource management is a field of management involves planning, organizing, directing and controlling the functions of procuring, developing, maintaining and motivating a labor force.

Objectives of Human Resource Management

Objectives are benchmarks against which actions are evaluated. HRM has some specific objectives by which organizations are benefited to materialize the goals of the enterprise. The objectives are given below:

1. To help the organization reach its goals: Organizations achieves their goals by the utilization of resources. Human resource utilizes all other resource without which an organization can never reach its goals. The HRM helps the organization to reach its target.

2.To achieve effective utilization of human resources:

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Human resource are socio, psychological being. They are to be natured, motivated, inspired to contribute their best to the organization. The objective of HRM is to develop and utilize all avenues to specify the human resources. So that, their effective utilization may be possible.

3 Employ the skills and abilities of the workforce efficiently: HRM is to buildand protect the most valuable asset, people in the organization. This entails that human skills and abilities are to tracked rightly, bridge the gaps with realities and place them in the most competent jobs so that they can best use their skills and abilities.

4. To provide the organization with well- trained and well motivated employees: The objective of HRM is to enhance the required skills and potential abilities through training and development. It is also intended to make the employees happy with the job. All the goals make human resource management competent to provide organization a satisfied, motivated and trained workforce that makes organization competitive in the economy.

5. To increase the employees job satisfaction and self-actualization: The human potentials have an ability that are engaged only when they are satisfied with the jobs and feel a sense of belongingness and fulfill ness with their organization. HRM is aimed at enhancing the environment of the organization in such a manner. So that the human resource can maximize their job satisfaction and actualize their self-objectives and goals.

6. To achieve quality of work life: The HRM is to develop and maintain a quality of work life that makes employment in the organization desirable. Quality of work life includes amicable management and supervisory style, freedom and autonomy in decision making, satisfactory psychological conditions working hours and meaningful jobs. A sound policy and program would facilitate the organization to have qualified persons and to promote motivated workforce.

7. To communicate HRM policies to all employees: Communication is an effective tool to know about intensions of internal and external human bodies with which organization has got interest. The internal HR is to be communicated with policies, programs and actions which are relevant to their interest. It should be communicated in their own language; so that they can best understand and follow it accordingly.

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8. To maintain ethical policies and socially responsible behavior: All HRM activities must be fair, truthful and honorable. People shall not be discriminated on any account. All basic rights of people should be protected. These ethical principles and activities should apply to all activities.

9. To manage change: Change is inevitable and human is the most deterrent force to bring about changes. The relationships between and among people in organization are going through rapid, turbulent and strained development. Therefore, flexible approaches must be initiated and used effectively without jeopardizing the survival of the organization. HRM is, thus targeted to cope with changes and maintain sustainable growth of the organization.

10. To secure the integration of the people with the organization: HRM is intended to match people with the organization. The matching is done by talking into consideration personal jealousies, prejudices, personality, conflict, cliques, and factions, favoritism, nepotism which is deterrent to commitment and integration. This would execute the objective of HRM to secure integration of people with the organization.

11. To manage increased urgency and faster cycle time: Today, firms place a growing emphasis on speed and urgency, the ability to increase customer service, the development of new product, training and education of technicians, managers and astute decision makers thought of in terms of cycle time. Therefore, HRM is distinct to prepare people meet this faster cycle time trough quick response to develop people to recruit and select most talented person for the organization.

12. To maintain better human activities: HRM mainly deals with human resources achieve objectives of the organization. So it is important to maintain better human relations.

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Chapter Three
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Theoretical Study

Function of Human Resource Management

Recruitment and Selection


3.1.1 Concept of Recruitment & Selection: Recruitment is the process of discovering potential candidates for actual or anticipated organizational vacancies. It involves searching and Sourcing for viable job candidates.

Recruitment is the process of finding qualified people and encouraging them to apply for finding work with the HRm. On the other hand, selection is the process of choosing among those who do apply. Once an effective recruitment program has supplied enough applicants pool the organization faces the task of choosing the best ones for specific Jobs.

HRM by Mark C. Zweig

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE 3.1.2. Recruitment and Selection Process: The recruitment process- Putting the right People in the right positions at the right time is one of the most critical tasks any organization faces. Throughout the recruitment process the organization an attempt to sell itself to the more promising candidates- that is, to convince them that the organization is a good place to work. The standard recruitment process of a large organization is large organization is-

Vacant or new position occurs

Perform job analysis and plan recruitment effort

Generate potential applicant pool

The requirement process Personnel selection is a process of measurement, decision-making and evaluation. The goal of personnel selection system is to bring into organization individuals who will perform well on the job. The standard selection process of large Organization typically consists of eight steps:

Failed

Initial Sneering

Passed Failed Completing the Application form Passed Employment test

Failed

Passed Comprehensive interview Background investigation Conditional job offer

Failed Problem

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Reject Application Unfit

Physical Examination Permanent Job offer

The Selection Process: HRM by S.P. Robbins, 7th edition 3.1.3 Job 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. i. Questionnaire Method: Under the Questionnaire method, employee are sent specifically designed questionnaire on Which they check of rate items they perform on their job from a long list of possible task items. Technical Conference Method: A Job analysis technique involves extensive input from the employees supervisor. Diary Method: The diary method requires job incumbents to record their daily activities .

ii. iii.

3.1.4 Steps in Job Analysis: The steps involved in conducting the job analysis includes:

Understand the purpose of the job analysis

Review draft with supervisor15

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Understand the role of Job in the organization

Develop draft

Benchmark position

Seek clarification Determine how to collect job analysis information

Steps in Job analysis

HRM by S.P. Robbins, 7th edition

3.1.5 Sources of recruitment: There are two Sources of recruitment: Internal and external. Deciding whether the position is to be filled internally or externally is often as early task in recruitment planning for a specific vacancy .Entry-level jobs must be filled externally, but for other positions, internal sources are use..

Internal sources are as Hiring relative and dependents of the existing employee; By promotion and transfer of existing employees; From employees on leave, long cause deputation of loan from similar other organization. External sources are as New entrants as fresher from school and colleges;

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Educated unemployed due to lack of opportunities elsewhere; Retired hands with experiences; Hand hunting.

3.1.6 Methods of recruitment: Methods for internal recruitment: There are several methods for finding qualified applicants within the organization. Among the most common are-

Job Position: Job position involves announcing job openings to all current employees. The announcement carry information about the nature of the position and the qualifications needs and any employee who is interested may do the job. Employee Referrals: Another way to find applicants is through employees referrals by other departments. Informal communications among managers can lead to the discovery that the best candidate for a job is already working in a different section of the HRM Skills inventories: Information about every employees skills, educations, work history and other important factors is stored in a data base, Which can then be used to identify employees with the attributes needed for a particular job.

Method for external recruitment: Finding qualified applicants from out the organization is the most difficult part of recruitment, Typically, the external recruitment process uses different methods:

Advertising is one of the most popular methods. The most useful advertisement is one of the specifics the exact nature of the job, the qualification with the target audience in mind.

Employment Agencies: There are three types of employment agencies: (i) Public agencies; (ii) private employment agencies; (iii) Management consulting HRM Educational institutions generally have placement offices to assist their graduates in finding work. Unfortunately, these kinds of agencies are not popular in our country.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Campus recruitment: Sending an employers representatives to college campuses to screen potential applicants and create an applicant pool form the recent graduate is called campus recruiting. It is an important source of management trainees, promo table candidates and professional and professional and technical employees. Internship: Many college Students get their jobs through college internship. Internship is important manpower source for the organization. Internship can be winwin situation for both students and employees. For students, it may mean being able to home business skills, learn more about potential employers and discover their likes (and dislikes) when it comes to choosing careers. And employers, of Course, can use the interns to make useful contribution while evaluating them a possible full time employee.

Professional Organization: Many professional organizations operate placement services for the benefit of their members. These organizations publish of job vacancies and distribute these lists to members. Employee leasing: Individuals who are hired by one HRM and sent to work for a specific duration of time are called leased employees. When an organization has a need for specific employee skills, it contracts with the leasing HRM to provide a certain number of trained employees. Personal contact: Another means of recruiting is the personal contact. Some times personal and good communication can provide an opportunity to get experience manpower as well as better job offer.

HRM A practical approach by Michael Harris

3.1.7 Introduction and Orientations:

These terms are interchangeably used to give a friendly welcome to the new employees as members of the organization so also to introduce the new employees with the available installation (plant and machineries systems), work norms, organizational objectives and the job positions of the employees. Some organizations make available programmed instructions materials to new employees to help them to get appointed with the departmental rules and regulations, their entitlement for leave for leave, pay overtime, and other miscellaneous privileges, which affect their whole service.

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3.2 Training & Development

3.2.1 Concept of Training & Development. Training is an important HRD activity, which reinforces HRP in an organization. Apart from the need for internal staffing, enhances job related skills and also facilitates acquiring of new skills required for averting skill obsolescence in an organization. Without precisely knowing the functions of training, education and development, as pointed out earlier, it would be difficult for us to appreciate the objectives, roles and significance of training in an organization.

3.2.2. Purposes of training,

Training may be defined as a systematized tailor made programmer to suit the needs of particulars organization for developing certain attitude, actions, skills and abilities in employees irrespective of their functional levels. Training therefore, serves the following important purposes for an organization. To increase the performance level of an employee and to develop him/her in such a manner that he/She can rise to the position of higher responsibility.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE To constantly develop manpower to meet the current as well as future needs or the organization. To ensure effective utilization of human resources. To integrate individual goals with the organization goals by creating a climate so that an individual employee can best achieve his goals by achieving the goals of the Organization.

Human Resource Management- Dipok Kumar Bhattacharyya-HRst Edition-2002

3.2 .3.The benefit of Employee Training.

How Training Benefits the Organization

Leads to improved profitability and/or more positive attitudes toward profit orientation. Improves the job knowledge and skills at all levels of the organization. Improves the morale of the workforce. Helps people identify with organizational goals. Helps creative a better a better corporate image. Fosters authenticity openness and trust. Improves the relationship between boss and subordinate. Aids in organizational development. Learns from the trainee. Helps prepare guidelines for work. Aids in understanding and out organizational policies. Provides information for future needs in all areas of the Organization. Organization gets more effective decision making and problem solving. Aids in development for promotion from within. Aids in developing leadership skill, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display. Aids in increasing productively and. or quality of work. Helps keep costs down in many areas e.g. production, personnel administration etc. Develops a sense of responsibility to the organization for being competent and knowledgeable. Improves labor-management relation. Reduces outside consulting costs by utilizing competent internal consulting. Stimulates preventive management as opposed to putting out HRes. Eliminates suboptimal behavior (such as hiding tools .) Creates an appropriate climate for growth, communication. Aids in improving organizational communication. Helps employees adjust to change. Aids in handling conflict, thereby helping to prevent stress and tension.

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3.2.4 Need for Manpower Training The needs for manpower training in an organization may be categorized follows: Updating knowledge. Avoiding Obsolescence. Improving Performance. Developing Human skills. Imparting Trade-specific Skills. Stabilizing the Workforce.

3.2.5 Need for Training, Policy.

To ensure consistency in Training and Development Function the HRM department of each Organization develops a suitable training, policy identifying the scope, objective, philosophy and techniques Such a training policy, inter-alias, serves the blowing purposes; It defines what the organization interred to accomplish It indicates the type of persons to be responsible for training functions. It identifies the formal and informal nature of training. It spells out the duration, time and place of training. It indicates the need for engaging outside institutions formattingIt embraces and includes training in relation to labor policies of the organization.

Human Resource Management-Dipokkumar Bhattacharyya-HRst Edition-2002

3.2.6 Determining training Needs

What deficiencies if any incumbents have in eh skills, knowledge or abilities required to exhibit the

What are the organizations There is a need for goals?

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What behavior are necessary for each job incumbents to complete his or her arranged tasks?

What tasks must be completed to achieve the goals?

Training needs.

Human Resource Management-De-Cenzo. Robbins-Sixth

3.2.7 Classification of training programs.

Depending on the functional level and occupational categories of employee an organization can classify training programmers as under:

Level 1. Workers

2.Supervisors

Nos. (i) (ii) (iii) (iv) (i) (ii)

Types of Training Introduction Job training Craft training Special Purpose Training Induction Foremanship

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(iii) 3. Staff Members (i) (ii) (iii) (iv)

4. Managers and Executives

Supervision Manpower Management Introduction Professional Technical Human Relations Induction Executive Training Training in Executive Development

Apart from the above routine program for different levels, training on total quality awareness and training encompassing all aspects of total quality management have now become almost compulsory for all functional levels.

3.2.8 Training for Top & Middle management

Top and middle management personnel are trained mainly on the following eight areas to expose them to the managerial practices: Planning Control Co-ordination Motivation Inspiration Communication Decision Integration

3.2.9 The Training Process Managing the training process can go a long way enhancing its effectiveness. If training programs are well conceived executed, both the organization and its employees benefit.

Following a comprehensive process helps managers meet the objective of the training program.

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Assess training needs *Who needs to train? *What do they need to know? *What do they already know?

Set training objective *Specific *Measurable

Plan training evaluation *Did trainee like the training? *Can they meet the training objective?

Development training program * Content * Methods * Duration *Location *Trainers

*Do they perform better on conduct training?

Conduct training

Evaluate training

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2.2.10 Steps of Designing the Training Program

Incidentally, it has now also become one important corporate practice in line with ISO certification requirement. The following steps are involved in designing the training program:

Selecting Strategies. Breaking Objectives. Choosing Methods. Deciding Packages. Designing the Program.

2.2.11 Training and Development Approaches

In selecting training and development techniques, trade-offs exists. That is, no single technique is always best; the best method depends on:

Cost-effectiveness Desired program content Learning principles Appropriateness of the facilities Trainee preferences and capabilities Trainer preferences and capabilities

2.2.12 Training Methods

The following methods are mostly used for training of employee: On-the-job training Job Instruction Vestibule Training Training Centre Simulation Apprenticeship

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Off the-Job Methods

Lectures The Conference Method Group Discussion Case Study Role Playing Programmed Instruction T-Group Training E-Learning.

Human Resource Management-Dipok Kumar Bhattacharyya

2.2.13 International Training & Development Issues Important Components of international human resource management include both cross-cultural training and a clear understanding of the overseas assignment as part of a managers development.

Cross-Cultural training is necessary for expatriate before, during, and after foreign assignment. It is crucial to remember that when the expatriates arrive, they are the foreigners, not the host population. Before the employee and family relocate to the overseas post, they need to absorb much cultural and practical background. Language training is essential for everyone in the family.

Although English is the dominant business language worldwide, relying on English puts the expatriate at a disadvantage. The expatriate will be unable to read trade journals and newspapers, which contain useful business information, and must rely on translators, which at best only slow down discussion and at worst lose things (- IS in the process. Even if an expatriate manager is not fluent, a willingness to try communicating in the local language makes a good impression in the business community- unlike the insistence that all conversation be in English. Foreign-language proficiency is also vital for family members to establish a social network and accomplish the everyday tasks of maintaining a household. Americans may be able to go the produce market and point what was display, but if the shop has unfamiliar meats or vegetables, it helps to them to ask what each item is and its even better to understand the answer. Cross-cultural Training is, of course, much more than language training. It should provide an appreciation of the new culture, including details of its history and folklore, economy, politics, religion, social climate, and business practices. It is easy to recognize that religion is highly important in daily life in the middle East, but knowledge of the reglions history and an understanding of the specific and beliefs is important to avoid inadvertently insulting business associate or social contacts.

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3.3 Compensation & Benefits

2.3.1 Concepts of Compensation & Benefits: Once employees have done their jobs and been appraised, they expand to be paid. Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment. It has two main components: (1) direct financial payments (wages, salaries, incentives, commissions and bonus) and (2) indirect payments. In addition to compensation in the form of wages and salaries, HRM provides workers with various services and programs known as employee benefits.

Components of compensation system

Compensation System

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Indirect Compensation Direct Compensation

Marti pay

Basic pay

Salary

Wage * Bonus

Incentive pay *Saving * Commission * profit sharing

Differed

*Stock

*purchase

Protective Program Facilities medical Insurance

Pay for Time Not worked

Service * Recreation

* profit sharing * Stock option *Annuity

* vacations

HRM by C.D. Fisher,5th edition

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE 2.3.3 The balance between new employee capabilities and job demands:

New employee Capabilities

Orientation Job Demand Training

Employee Capabilities and Job Demand Equation Human Resource Management-Keith Davis-Fifth Edition-1996

2.3.4 Benefits to the Individuals: Helps the individual in making better decisions and effective problem solving. Through training and development, motivational variables of recognition, achievement, growth, responsibility and advancement are internalized and operational zed. Aids in encourages and achieving self-development and self-confidence. Helps a person handle stress, tension, frustration, and conflict. Provides information for improving leadership knowledge, communication and attitudes. Increases job satisfaction and recognition. Moves a person toward personal goals while improving interaction skills. Satisfies personal needs of the trainer. Provides trainee an avenue for growth and a say in his/her own future. Develops a sense of growth in learning. Helps to eliminate fear in attempting new tasks. 2.3.5 Benefits in Personnel and Human Relations: Intra and inter group relations and policy implementation. Improves communication between groups and individuals. Aids in orientation for new employees and those taking new jobs through transfer or promotion. Provides information on equal opportunity and affirmative action. Provides information of other governmental laws and administrative policies. Improves interpersonal skills. Make organization policies, rules and rules and regulation viable. organization Improves morale. Builds cohesiveness ill groups. Provides a good climate for learning, growth, and coordination.

Human Resource Management-Keith Davis-Fifth Edition-1996

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

2.3.6 Wages vs. Salary: The worlds wage and salary are sometimes considered synonymous, but they have slightly different meanings. Wages refers to an hourly rate of pay and is the pay basis used most frequently for production and maintenance employees. Salary refers to a weekly, monthly or yearly rate of pay. Clerical, professional, sales and management employees are usually salaried.

2.3.7 Establishing Pay Rates: The process of establishing pay rates while ensuring external, internal and procedural equity consists of five steps: 1. Conduct and Salary Survey: The HRM steps of establishing pay rates is to conducting a salary survey of other employees are paying for comparable jobs. A survey aimed at determining prevailing wages rates. A good salary survey provides specific wage rates for specific jobs. 2. 2.Job Evaluation: Job Evaluation is a systematic comparison done in order to determine the worth of one job relative to another. It is a formal and systematic comparison of jobs to determine the worth of one job relative to another and eventually results in a wage and salary hierarchy. 3. Group Similar Jobs into pay Grades: Once it has used job evaluation to determine the relative worth of one job, the committee can turn to the tusk of assigning pay rates to each job, however it will usually want to the group jobs into pay grades. It could, of course, just assign pay rates to each, individual job. A pay grade is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. 4. Price Each Pay Grade: The next steps is to assign pay rates to the HRM pay grades. The HRM can use a wane curve to help assign pay rates to each pay grade. The wage curve shows the relationship between the value of the job and the average wage paid for this job. 5. Five Tune Pay Rates: Five tuning involves developing pay range and correcting out of line rates is a series of steps or levels within a pay grade usually based upon years of service.

2.3.8 Types of Employee Benefits: 1. Mandatory Benefits: Organizations are required to pay these benefits to the employees by law, rules acts ordinance, Example: Salary, bonus. 2. Non mandatory benefits: Optical programs and services such as tuition refunds variety of discount programs, day care facilities for children, credit program etc.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE 2.3.9 Employee Benefit Program initiated by HRM: There are many benefits and various ways to classify them. We can classify them as: 1. 2. 3. 4. Pay for time not worked. Insurance benefits Retirement benefits Service benefits

2.3.10 Employee Services: In addition to the benefits describe above, organizations a wealth of service employees may find desirable. These services can be provided to the employee at no cost or at a significant from what might have been paid without the organizations support. Services provided to employees may be-

1. Wellness program: In an effort to stimulate wellness, many employers can provide recreational facilities for employers or reimburse employees for health club memberships. Other companies provide incentive for employees to participate in exercise programs, quit smoking, lower blood pressure or cholesterol or to take similar steps towards good health. 2. Educational Assistance: Another important benefit is educational assistance. Sometimes companies offer monthly stipends for students. Typically, employees are reimbursed for tuition and possibly for books or other associated costs. 3. Child Care Assistances: It is likely that every major company will soon consider offering childcare assistance as an employee benefit. In most recent year this benefit is being popular in our country because of the number of women in the kobo market has increased dramatically. 4. Other Services: Other important services that can be provided by the company are: social and recreational events, employee assistance programs, credit unions, housing, tuition rcillibulseniont, and company paid transportation, free coffee, baby sitting services or referrals.

2.3.11: Incentive Plan: Managers may offer group and individual incentive plan that tics pay to some measure of the HRM overall profitability. Several incentive plans are:

Piecework Plans: A system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day.

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Merit pay as an Incentive: Merit pay or a merit raise is any salary increase the HR in awards to an individual employee based on his or her individual performance.

Profit Sharing Plans: Profit sharing plan whereby employees share in the companys profits. There are several types of profit sharing plans: (a) In cash plans: In cash plans, the HRM supply and distribute a percentage of profit as profit shares to employees. (b) Employee stock Ownership plans (ESOP):ESOPs are company wide plans in which a corporation contribution shares of its own stock or cash to be used to purchase such sack of the HRMs for employees.

2.4. Performance Appraisal.

2.4.1 Concept of Performance: Performance appraisal means evaluating an employees current and or past performance relative to his or her performance standards. Performance appraisal is the systematic evaluation of the individual with respect to this performance on the job and his potential for development. Performance appraisal is the description of an employees job relevant strengths and weaknesses.

Performance means the degree or extent with which an employee applies his skill, knowledge effort to job, assigned to him and the result or that application

Analyses, review or evaluation of performance or behavior analysis of an employee: It may be formal or informal, oral or documented, open or confidential.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE I like any other function, performance appraisal is also an important management activity.

2.4.2 Who should he appraising?

Who should actually rate an employce7s, performance? Several options exist.

Appraisal by the Immediate Supervisor Using Peer Appraisal Using Rating Committees Self ratings Appraisal by Subordinates

Human resource Management Gary Sixth Edition - 1994

2.4.3 Rates of Employee Performance

Self Evaluation Peer Evaluation Subordinate Evaluation Customer Evaluation Computers in Performance Evaluation 360 Degree Appraisal

Human resource Management Fisher, Schoenfeldt, Shaw - Third

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2.4.3 Functions of Performance Appraisal.

The Primary functions of Performance Appraisal are : To identify and define the specific job criteria. Man or ionizations at the beginning of the year set key performance areas (US) or key result areas As) for employees based on mutual discussions.

To measure and compare the performance in items of the defined job criteria, KRAs and KPAs are also designed so that they can help in measuring job performance in quantitative or terms.

To develop and justify I reward system, relating rewards to employee performance. To identify the strengths and weaknesses of employees of employees and to decide on proper placement and promotions. To develop suitable training and development programmers for enriching performance of the employees.

To plan for long term manpower requirements and to decide upon the organizational development programmers needed, duly identifying the change areas (For overall improvement of the organization).

To identify motivational reinforces, to develop communication systems aid also to strengthen superior subordinate relationships.

Human Resource Management Dipok Kumar Bhattacharvva - HRst

2.4.5 Objectives of performance appraisal.

A performance appraisal system tries to serve various purposes and attain a number of objectives, The major objectives of a performance appraisal system may classified as remedial, development, innovative and motivational.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Development objectives stimulate growth of the employee both in their present and future jobs.' Thus, it identifies training and development needs, ensures placement and promotion, etc.

Innovative objectives are for discovering ways to deal with a new job and also to identify and develop better ways for existing jobs.

Motivational objective are for rewards, motivation and effective communication and also for better interpersonal relations.

2.4.6 Traditional Methods of performance appraisal.

Straight Ranking Method. Paired Comparison Techniques. Man-to-Man Comparison. Grading Method. Graphic or Linear Rating Scale. Forced Choice Description Method. Forced Distribution Method. Checklist Method. Frec Essay Method. Critical Incident Method. Group Appraisal Method. Field Review Method.

4.7 Modern Method

Management by Objective Assessment Center Method

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Human Asset Accounting Method Behaviorally Anchored Rating Scales (BARS) 360 Degree Apprasials Potential Appraisals Human Resource Management Dipok Kumara Bhattacharvva HRst Edition-2002

2.4.8 Forced Distribution Appraisal Method

Performance

Distribution Target

Level 1. Employee Is below acceptable performance standards.

5% of unit

level 2. Employee meets acceptable performance standards but has

15% of unit

room for improvement.

Level 3. Employee show a uniformly

50%

good level of performance

Level 4. Employee show a very high

20%

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Level of Performance

Level 5. Employee consistently shows Outstanding performance

10%

Each of the employee in a work unit is allocated to one of the performance levels show in the table. Associated with each performance levels is a " distribution" that should be in allocating employees to the various levels.

2.4.9

Examples of Typical Graphic Rating Scales

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

A. quality of performance

Low

High

B. Attention to Detail

Very Poor

Below Average

Above Average

Very Good

Unacceptable C. Overall Quality

Average

Outstanding

Very numerous D. Quality Reject/Errors

Acceptable but

Almost no Reject/ Errors

Must be checked

E. Give the detailed nature of the work and concentration to perform well the employee makes.

5= Substantially fewer errors than world be expected.

4= Fewer errors than world be expected.

3= About as many errors as world be expected.

2= More errors than world be expected.

1= Far more errors than world be expected.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Human Resource Management Fisher, Sehoenfeldt. Shaw Third Edition 1997

2.4.10

A mixed Standard Scale and Scoring key with Example Rating for One Employee

Dimension Represented2

Items

Employee Rating

2(A)

1.Has normal self confidence with only occasional uncertainly. Usually open and self assured.

1(p) 2.Some lack of efficiency. May take too much time to complete assignments and sometimes does not really finished them. 3(G) 2(p) I(A) 3.Written and oral are we formulated and through. They really need explanation. 4.He/She is shy and uncertain. Avoids situations that require of a strong position. 5. He/She is efficient enough, usually gets through assignments in reasonable time.

3(p) 6.Sometimes reports are so incomplete and poorly organized they are of little value and must be done over. I(G) task. 2(G) 3(A) 7. He/She is quick and efficient. Able to keep work on schedule. Really gets going on a new

8.Behaves confidently.Reacts in all situations without hesitation. 9.Reports are useful and meaningful but often require additional explanation.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Scoring Good + 0 Rating Statement Average + + + + 0 Poor + + + + + 0 Score 7 6 5 4 3 2

Human Resource Management Fisher, Sehoenfeldt. Shaw Third Edition 1997

2.4.11 Weighted Checklists for Supervisory Job with Example Evaluation of One Supervisors.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE Introduction Check those statement that represent the typical action of the employee.

Statement

Acts decisively when encountering problems Is fair to all subordinates in his/her promotion decisions Provides temporary solution to problem that keep on appearing 3.0 Assesses the mood of subordinate before pursuing a subject that would damask relationship Evaluates performance once or twice a year Is unwilling to pint out subordinates poor work performance Conducts detailed discussions with worker to solve problem Checks subordinate work thoroughly and is sharp at finding errors Gives merit increment to a poor performer Carrie out the policies of the company with regards to individual welfare or circumstance

4.9 5.0

4.1 2.2 4.6 4.2 2.0 2.3

Sing subordinates work without carefully checking it Is unable to provide guidelines for making decisions when faces with a problem Maintains very good relations with other supervisors in the division Shows concern for employee welfare but does not act on it. Performance Score for Employee = (4.9+3.9+4.1+2.2+2.0+2.0+5.0)=24.1.

2.0 2.3 5.0 2.7

Human Resource Management Fisher, Schoenfedt, Shaw Third Edition - 1997

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE 2.4.12 Steps in performance appraisal. Irrespective of the methods applied for performance appraisal, its steps follow more or less a set pattern, which are listed as below: Establishment of performance standards. This is done mostly while developing job descriptions. Communication of standards to the employees. Measurement performance. Comparison with the job standards. Discussing with appraisal result with the employees Initiation corrective action, where necessary

Human Resource Management Dipok Kumar Bhattacharvva HRst Edition - 2002

2.4.13 Performance Counseling Performance counseling is a process to help subordinates to their performance objectively. It helps in identifying, training and development needs and also ensures improvement in the future performance of employee.

Primarily Performance Counseling Attempts To Help An Employee in the Following ways:

It helps an employee to understand his own strength and weaknesses. More effective Counseling session even enable employees to make, their independent SWOT analysis, i.e, opportunities and threats in achieving the performance Can also be made clear to such employees for their independent performance.

Since good performance counseling believes in giving feedback information about the employee behavior, and their performance, it helps improving professional and interpersonal competence of employees.

It helps in setting goals, and formulating action plan for further improvement of employees.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

It helps the employees to identify different alternatives for dealing with problems.

A good performance counseling session being supportive and empathetic employees feel encouraged to- openly discuss their assignations, conflicts and problems. Human Resource Management Dipok Kumar BhattacharvvaHRst Edition-2002

2.4.14

Different phases of performance counseling

There Are different phase of the performance counseling process. They are mentioned below.

Rapport Building :

The HRst phase of performance counseling is rapport building, i,e., establishing a climate of acceptance, support, openness, etc. Subordinates should be assured in this phase that their superiors are keenly interested in their development.

Exploration :

In this phase, apart from visiting the employees and creating a climate of openness, the counselors help the employees to understand their strengths, weaknesses, opportunities and threats.

Action Planning

Specific plans and actions for the development of employees are identified at this phase or performance counseling. The counselor helps the employees to implement such action plans for effective results. For

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE making such action plans acceptable, some counselors prefer to develop the action plans exposing employees to a series of brainstorming sessions.

Human Resource Management Dipok Kumar Bhattacharvva HRst Edition - 2002

2.4.15 Performance Counseling Process. The counselors in performance counseling sessions should be excellent hastener. He should pay attention to till ideas, feelings and sentiments of the person being counseled. This enables the counselor to understand and analyze the subordinates concern. The effectiveness of performance compositing session, therefore, depends on efficiency in asking question. The question should be framed in such a way that they constructive suggestions from subordinate, should be open ended and empathetic. The questions should not be critical or should not apprehensive the emotion of the counselor is to test or evaluates the subordinate . Secondly, the performance counseling process should ensure communication of feedback to the subordinates in such a manner so as to evoke constructive response from them. Since, giving negative feedback is embarrassing, feed back should always be descriptive and non evaluative. It should be focused on the behavioral attributes rather than on the subordinate him self feedback should be made more data based and suggestive would be continuous and verifiable.

2.4.16

Problems and issues : Appraising Performance

DEALING WITH THE MAIN RATING SCALE APPRAILS PROBLEMS.

There are five main problems that can undermine appraisal tools as graphic rating scales unclean standards halo effect, central tendency, leniency or strictness and bias.

Under standards Unclear performance standards and appraisal scale that too open to interpretation instead, include descriptive phrases that define trait and what meant by standards like good or unsatisfactory.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

Halo Effect

Halo effect in performance appraisal, the problem that occurs when a supervisors rating of a subordinate on one trail biases the rating of the person on other traits.

Central Tendency Central tendency is a tendency to rate all employees the same way, such as rating them all average.

Leniency or Strictness

Strictness / Leniency is the problem that occurs whom, a supervisor has a tendency to rate all subordinate either high or law.

Chapter Four 45

HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

HRM to Improve Employees Performance

Performance Improvement Plan:


A performance improvement plan is a formal process used by supervisors to help employees improve performance or modify behavior. The performance improvement plan, or PIP, as it is

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

sometimes called, identifies performance and/or behavioral issues that need to be corrected and creates a written plan of action to guide the improvement and/or corrective action. Fundamentally, a PIP is a structured communication tool designed to facilitate constructive discussion between the employee and the supervisor. An effective PIP will:

Specifically identify the performance to be improved or the behavior to be corrected. Provide clear expectations and metrics about the work to be performed or behavior that must change. Identify the support and resources available to help the employee make the required improvements. Establish a plan for reviewing the employee's progress and providing feedback to the employee for the duration of the PIP. Specify possible consequences if performance standards as identified in the PIP are not met.

When an employee is not performing or meeting expectations, supervisors have at their disposal several options to correct the behavior. They can rely on corrective actions such as oral and written warnings. In more serious cases, they can move to suspension without pay, demotion or dismissal. The PIP, in many cases, can be used in place of these disciplinary processes. A PIP can be given at almost any point in performance discussions with the employee. Some common uses for the PIP include: To correct workplace behaviors affecting performance, productivity or staff relationships. On the heels of an unsatisfactory annual review. To provide employees an opportunity to correct a situation rather than implementing a more serious step in the disciplinary process. A basic tenet with all performance management efforts is the notion that taking action early is better than waiting. The same holds true for the performance improvement plan. A PIP is more likely to be successful when the supervisor recognizes there is a performance or behavioral issue that needs to be corrected. Early communication and early feedback (both positive and corrective) are good ways to prevent future performance problems. Investing time early is always time well spent and the performance improvement plan can be an effective tool in preventing problems from getting worse or for intervening when performance and/or workplace behaviors have become counterproductive. Employee relations staffs are available to consult with and provide technical assistance to supervisors needing more information on this tool. Also check out the Training and

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

Development pages for information about classes offered during the year on performance improvement plans.

HR and talent management leaders are constantly striving to become more strategic. But more often than not it seems that when they are presented with a strategic alternative that really breaks new ground, they retreat and stick with the status quo. However, if you are serious about making a strategic impact and you take a minute to reflect, its hard to think of many things that could have more of a strategic impact than increasing corporate revenues. This is because increasing revenue or topline growth is on every CEOs agenda and it is also almost always a top corporate goal and an executive success measure. Other business functions like marketing, sales, supply chain, and product development have become corporate heroes (and are richly budgeted as a result) because they have demonstrated that they have a direct and measurable impact on this critical strategic goal. HR has historically focused exclusively on cost cutting, but realize that increasing revenue is a far superior goal. That is because almost anyone can cut costs using an arbitrary number. However, in order to generate more revenue in the marketplace from your customers, you must meet a much higher standard, which requires that you be competitive in every aspect of the business. Now if you are an HR traditionalist or someone who is happy to maintain HRs status as a service/overhead function, you are probably already thinking that a strategic goal to impact revenue is a ridiculous idea. However, you would be wrong. We know that HR can directly increase revenues because several firms have already succeeded in demonstrating to their CFOs that they could directly increase revenue. At least take a minute and look at a quick example where HR has increased revenue.

Actions With the Highest Impact on Revenue


Even if youre not ready to implement an HR-wide coordinated revenue impact strategy, realize that there are many independent actions that the functions within talent management can take in order to increase organizational revenue. If youre looking for some low-hanging fruit actions to take, here are some to consider (those with the potential for producing the most revenue impact listed first).

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

1. Prioritize revenue-generating business units, jobs, and employees the highest impact and the lowest cost action is prioritization. HR needs to work with executives, the CFO, and risk management to identify and then prioritize the specific business units that generate the most revenue. You should also identify the highest revenuegenerating jobs and employees. Next, you must also identify revenue impact jobs, which are jobs that dont directly generate revenue but the actions of the employees in the jobs directly influence the likelihood of subsequent revenue generation. You should also identify revenue impact functions (note that product development and customer service are often the highest revenue-impact functions). Finally, you should identify and prioritize jobs where a major error would significantly decrease revenues or increase costs. Obviously after setting your priorities, you need to develop processes that ensure that the most HR resources and the best HR personnel are allocated to those priorities. 2. Targeted recruiting from competitors recruiting talent away from your direct competitors has a high ROI, because if you are successful, your revenues will go up and theirs will go down. Start by mapping the revenue-generating talent at your competitors. Next, recruit away the top sales manager or exceptional salespeople from your competitors. Once you land a magnet individual, others are likely to follow. Other high-impact targets for your recruiting from competitors might include innovators, game-changers, pioneers, and individuals with expertise in monetizing products and services. 3. Retain revenue producers retention has a high ROI because most of the factors that cause top revenue generators to leave are not related to their pay. Interview the most successful revenue producers and those who significantly impact revenue. During the interview, identify the factors that currently frustrate them, as well at the factors that would make their job a dream job. Put together a personalized retention plan to minimize the negatives and to increase the positives. 4. Hire revenue producers external hiring brings in individuals with a proven track record for generating revenue. External hires also bring with them revenue-generating ideas. Focus your employer branding and recruiting processes on revenue-generating jobs. Reengineer the process so that it leads the industry in its ability to identify, attract, and hire individuals with a superior revenue-generating track record. For example, a major mobile phone network provider found that by adding an online testing component to its hiring process , the resulting call center rep that were hired produced over 10% more revenue than the untested hires. 5. Training on how to increase revenue revenue generation and the related skills that support it must become a key corporate competency. The T&D function must target its offerings so that they cover all aspects of revenue generation. The quality of the offerings must also be improved, so that individuals show at least a 10% improvement in revenue generation after returning to their jobs after completing the T&D programs. In addition to targeting revenue-generating employees, revenue impact learning modules need to be developed so that every employee (regardless of

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

their position) can understand the concept and subsequently improve their support of revenue-generating employees and business units. In this light, Wal-Mart routinely makes it a part of pre-shift store meetings to make all employees aware of which specific products produce the highest margins and revenue. This awareness allows employees to focus their sales and customer service efforts. 6. Identify barriers HR must proactively use surveys, interviews, and metrics to forecast upcoming revenue-generating problems and opportunities. HR must also have a process for rapidly identifying current problems and the barriers that restrict revenue generation. 7. Create a fast-reaction team HR must put together a team of specialists that can respond rapidly to the identified revenue problems that occur anywhere in your organization. Team members should excel at discovering HR related root causes and have the skills and experience necessary to solve sudden revenue generation problems. 8. Leadership development and succession must focus on revenue-related competencies revenue generators also need to be effectively led and managed. So as a result, the leadership function needs to make revenue generation a key competency and development area for leaders. The ability to increase the revenue impact of their team should also be added as a key criterion for promoting managers and leaders. 9. Proactive internal movement employees and contingent workers need to be proactively placed into the right jobs where they can have the highest possible revenue impact. The initial placement of top revenue producers needs to be regularly re-assessed so that key individuals (and even teams) are redeployed to the needed business areas. Seasonal and business cycle rotations may also be required to ensure that there is no excessive idleness among revenue generators. 10. Identify those who support revenue producers once a year, survey your top revenue producers and ask them which individuals or support positions have directly helped/contributed to their revenue production. Make sure that these impactful support personnel are rewarded and recognized. 11. Release poor performers quickly the performance management process must be redesigned so that it focuses on rapidly identifying, fixing, and releasing employees who fail to meet their revenue or revenue impact goals. The recruiting function should also continuously be on the lookout for top-performing talent that can be swapped with these lower-performing current employees. 12. Implement revenue-impact metrics and rewards work with the COO, the CFO, and performance management to develop a process and a set of metrics that accurately assess an individuals revenue generation and revenue impact. Rewards and recognition programs must also be focused and reengineered to better encourage revenue generation.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

13. Onboarding even the onboarding process can impact revenue generation if a weak process means that new-hires get up to speed slowly. As a result, the onboarding process must be reengineered so that new-hires on the first day clearly understand the importance of revenue generation, no matter what job they have. They also need to be informed about how their revenue generation/impact will be measured and rewarded. And finally they need to be educated as to where they can go to get help in this area. 14. Contingent workers and vendors must be included because a significant percentage of the workforce are not technically employees, HR must also work to ensure that contingent workers are hired and evaluated based on their ability to impact revenue. HR should work with purchasing to ensure that vendors, contractors, and consultants are also all capable of increasing revenues. 15. Generate a direct profit the least ambiguous of any HR action is directly generating revenue from external activities. Firms like Disney, HealthEast, Southwest, and Wachovia have generated revenue as a result of offering their HR services externally in areas including training, temp services, building a culture, and executive recruiting.

Performance Management:

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

Setting performance standards, observing and providing feedback, and conducting appraisals enables you to achieve the best results through managing employee performance. To begin the process, you and the employee will collaborate on the development of performance standards. You will develop a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discuss goals and objectives throughout the year, providing a framework to ensure employees achieve results through coaching and mutual feedback. At the end of the rating period, you will appraise the employee's performance against existing standards, and establish new goals together for the next rating period. As the immediate supervisor, you play an important role; your closest interaction with the employee occurs at this level. Performance Standards Performance expectations are the basis for appraising employee performance. Written performance standards let you compare the employee's performance with mutually understood expectations and minimize ambiguity in providing feedback. Having performance standards is not a new concept; standards exist whether or not they are discussed or put in writing. When you observe an employee's performance, you usually make a judgment about whether that performance is acceptable. How do you decide what's acceptable and what's unacceptable performance? The answer to this question is the first step in establishing written standards. Standards identify a baseline for measuring performance. From performance standards, supervisors can provide specific feedback describing the gap between expected and actual performance. Guiding Principles Effective performance standards:

Serve as an objective basis for communicating about performance Enable the employee to differentiate between acceptable and unacceptable results Increase job satisfaction because employees know when tasks are performed well Inform new employees of your expectations about job performance Encourage an open and trusting relationship with employees

Key Areas of Responsibility Write performance standards for each key area of responsibility on the employee's job description. The employee should participate actively in their development. Standards are usually established when an assignment is made, and they should be reviewed if the employee's job description is updated. The discussion of standards should include the criteria

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

for achieving satisfactory performance and the proof of performance (methods you will use to gather information about work performance). Characteristics of Performance Standards Standards describe the conditions that must exist before the performance can be rated satisfactory. A performance standard should:

Be realistic, in other words, attainable by any qualified, competent, and fully trained person who has the authority andresources to achieve the desired result Describe the conditions that exist when performance meets expectations Be expressed in terms of quantity, quality, time, cost, effect, manner of performance, or method of doing Be measurable, with specified method(s) of gathering performance data and measuring performance against standards

Expressing Standards The terms for expressing performance standards are outlined below:

Quantity: specifies how much work must be completed within a certain period of time, e.g., enters 30 enrollments per day. Quality: describes how well the work must be accomplished. Specifies accuracy, precision, appearance, or effectiveness, e.g., 95% of documents submitted are accepted without revision. Timeliness: answers the questions, By when? , How soon? , or Within what period? , e.g., all work orders completed within five working days of receipt. Effective Use of Resources: used when performance can be assessed in terms of utilization of resources: money saved, waste reduced, etc., e.g., the computer handbook project will be completed with only internal resources. Effects of Effort: addresses the ultimate effect to beobtained; expands statements of effectiveness by using phrases such as: so that, in order to, or as shown by, e.g., establish inventory levels for storeroom so that supplies are maintained 100% of the time. Manner of Performance: describes conditions in which an individual's personal behavior has an effect on performance, e.g., assists other employees in the work unit in accomplishing assignments. Method of Performing Assignments: describes requirements; used when only the officially-prescribed policy, procedure, or rule for accomplishing the work is acceptable, e.g., 100A Forms are completed in accordance with established office procedures.

Performance Measurements Since one of the characteristics of a performance standard is that it can be measured, you should identify how and where evidence about the employee's performance will be gathered.

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HRM TO IMPROVE IMPORVE EMPLOYEES PERFORMANCE

Specifying the performance measurements when the responsibility is assigned will help the employee keep track of his progress, as well as helping you in the future performance discussions. There are many effective ways to monitor and verify performance, the most common of which are:

Direct observation Specific work results (tangible evidence that can be reviewed without the employee being present) Reports and records, such as attendance, safety, inventory, financial records, etc. Commendations or constructive or critical comments received about the employee's work

Observation and Feedback (Coaching) Once performance objectives and standards are established, you should observe employees' performance and provide feedback. You have a responsibility to recognize and reinforce strong performance by an employee, and identify and encourage improvement where it is needed. You provide informal feedback almost every day. By observing and providing detailed feedback, you play a critical role in the employee's continued success and motivation to meet performance expectations. Coaching is a method of strengthening communication between you and the employee. It helps to shape performance and increase the likelihood that the employee's results will meet your expectations. Coaching sessions provide you and the employee the opportunity to discuss her progress toward meeting mutually-established standards and goals. A coaching session focuses on one or two aspects of performance, rather than the total review that takes place in a performance evaluation. Guiding Principles Effective coaching can:

Strengthen communication between you and the employee Help the employee attain performance objectives Increase employee motivation and commitment Maintain and increase the employee's self-esteem Provide support

Key Elements of Coaching To make your coaching session effective, you must understand the key elements of coaching:

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Coach when you want to focus attention on any specific aspect of the employee's performance. Observe the employee's work and solicit feedback from others. When performance is successful, take the time to understand why. Advise the employee ahead of time on issues to be discussed. Discuss alternative solutions. Agree on action to be taken. Schedule follow-up meeting(s) to measure results. Recognize successes and improvements. Document key elements of coaching session.

Questions to Consider When Coaching To provide effective feedback you must understand the elements of performance and analyze marginal performance. Keep these questions in mind:

How is the employee expected to perform? Does the employee understand these expectations? If not, why not? Does the employee know what successful results look like? How do you know? Does the employee know the performance is marginal? How do you know? Are there obstacles beyond the employee's control? Can you remove them? Has the employee ever performed this task satisfactorily? Is the employee willing and able to learn? Does satisfactory performance result in excessive work being assigned? Does unsatisfactory performance result in positive consequences such as an undesirable task being reassigned?

Coaching Behaviors To make the most of coaching the employee, remember to practice these coaching behaviors:

Focus on behavior, not personality. Ask the employee for help in problem identification and resolution. Use active listening to show you understand. Set specific goals and maintain communication. Use reinforcement techniques to shape behavior.

During the Coaching Session If you conduct a coaching session to provide positive feedback to the employee, keep the following ideas in mind:

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Describe the positive performance result or work habit using specific details. Solicit your employee's opinion of the same product or behavior. Ask the employee to identify elements that contributed to success (adequate time or resources, support from management or other employees, the employee's talent and interest in the project). Discuss ways in which you and the employee can support continued positive results. Reinforce for the employee the value of the work and how it fits in with the goals of the work unit or department. Show your appreciation of the positive results and your confidence that the employee will continue to perform satisfactorily. If appropriate, document your discussion for the employee's file. When you conduct a coaching session to improve performance, you may want to use the following format:

Describe the issue or problem, referring to specific behaviors. Involve the employee in the problem-solving process. Discuss causes of the problem. Identify and write down possible solutions. Decide on specific actions to be taken by each of you. Agree on a follow-up date. Document key elements of the session. If your coaching session is conducted to address poor work habits such as continued tardiness, keep these steps in mind:

Describe in detail the poor work habit observed. Say why it concerns you. Ask why it occurred and listen non-judgmentally to the explanation. Describe the need for change and ask for ideas. Discuss each idea and offer your help. Agree on specific actions to be taken and set a specific follow-up date. Document results from the session.

Follow-Up Discussion To conduct a follow-up discussion, consider the following steps:


Review the previous discussion(s). Discuss insufficient improvement and ask for reasons why. Indicate consequence of continued lack of improvement. (No threats! This isn't an oral warning.)

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Agree on action to be taken and set a follow-up date, if appropriate. Convey your confidence in the employee. Document your discussion.

Performance Appraisal The campus carries out its mission through the individual and collective contributions of its employees. To do their best, staff members need to know that those contributions will be recognized and acknowledged. Overseeing performance and providing feedback is not an isolated event, but rather an ongoing process that takes place throughout the year. The performance appraisal is part of that process, and provides an excellent opportunity for you to communicate with the employee about past performance, evaluate the employee's job satisfaction, and make plans for the employee's future performance. Remember that the performance appraisal summarizes the employee's contributions over the entire appraisal period (usually one year). It is not a step in the disciplinary process. It may occur as often as you believe is necessary to acknowledge the employee for accomplishments and to plan together for improved performance. Guiding Principles The goal of the performance appraisal process is to help the employee feel:

Positive about the job Motivated to do well and to develop Benefited by specific, constructive feedback Appreciated for specific contributions Informed about current and future performance objectives Involved as a participant in the process

Preparing for the Appraisal Both you and the employee play an important role in creating a productive performance appraisal process. Here are some suggestions to get the employee involved:

Schedule a mutually convenient time and place for the performance appraisal discussion. Allow enough time and ensure privacy. Explain that you would like the discussion to be a dialog, with input from both of you included in the final written document. Give the employee some options about how to prepare for the discussion. For example, ask the employee to prepare a self-evaluation using the same form you will use for your draft. The employee can address accomplishments and things that could be done better. Explain that you will be doing the same and that you may exchange these documents a few hours before your meeting

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Give the employee a list of questions to consider to evaluate his own performance. Sample questions might be: What have been your major accomplishments? What could you have done better? What could I do as your supervisor to help you do your job better? Would you like to see your responsibilities change? If so, how? Prepare a draft appraisal, making sure you have as much information as possible, including: job description, performance standards, previous appraisals, letters of commendation and/or criticism, samples of work, and records of disciplinary action. Consider the question, What can I do to help the employee do the job better and achieve developmental goals?

Conducting the Appraisal Discussion Continue the momentum you have established throughout the year with your ongoing dialog about performance. You want to set the tone for an open and productive discussion. Here are some steps you can take to make it as successful as possible:

Create a supportive environment by stating clearly the purpose of the discussion. Be as non-threatening and open as possible since the employee may be tense or uncomfortable. Discuss key areas of responsibility and give examples of specific results. Have the employee go first, based on the self-appraisal or the questions you provided in advance. Ask lots of questions and get clarification to make sure you understand the employee's point of view. Discuss what could have been done better. Identify your concerns and listen to the employee's explanations. Ask your employee for help in resolving problems. Focus on future performance and be sure the employee takes responsibility for improvement. Make sure you and the employee have the same understanding of future expectations regarding performance. Give positive recognition for performance that reinforces the goals of the work unit. Discuss the employee's interests and potential new responsibilities. Discuss both of your roles in achieving new objectives while maintaining ongoing responsibilities. Conclude on a positive note, emphasizing the benefits of your dialog.

The Final Appraisal Document Record the results of your discussion on the performance appraisal form. Ask the employee to sign the form, and explain that this signature acknowledges discussion of the contents, not necessarily agreement with them. Route to your manager for final signatures and placement in the employee's departmental personnel file. Give a copy of the signed appraisal to the employee.

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PURPOSE This policy identifies the proactive and progressive actions a supervisor may take when an employees performance, attendance, or behavior is unsatisfactory (e.g., does not meet the performance or competency expectations of the position). This policy is not intended to create a contract of employment or to change the employmentat-will relationship that exists between Drexel and its employees. As an at-will employer, Drexel reserves the right to discipline and terminate professional staff at any time with or without cause and to modify, at any time, the terms and conditions of employment (without limitation to salaries, work schedules, work duties, etc.). II. POLICY When an employees performance, attendance, or behavior is unsatisfactory, the supervisor will advise the employee of the issue(s) and give him/her an appropriate opportunity to improve to an acceptable level through the Performance Improvement Process, subject to the other provisions of this policy. When a supervisor determines there is an unacceptable performance, attendance, or behavior issue(s) with an employee, the supervisor shall document the issue(s) and required change(s) in a Performance Improvement Plan (PIP) and share the plan with the employee in a face-to-face meeting. Should the employees performance, attendance, or behavior fail to improve as specified by the PIP, the employee will be subject to further action, up to and including termination. The University encourages supervisors to use proactive and progressive action whenever possible to improve performance (e.g., to apply the actions outlined in the Performance Improvement Process progressively and sequentially); however depending on the nature, frequency, and severity of the issues, and an employees work history, a supervisor has the freedom to determine what progressive actions are necessary and to take the action deemed to be appropriate under the circumstances. Consultation with Human Resources is strongly advised prior to any Performance Improvement Plan beyond Counseling and is required prior to Termination. III. APPLICABILITY This policy applies to all non-faculty employees not affiliated with collective bargaining units. IV. DEFINITIONS Performance Improvement Process: any official action taken by management to improve unsatisfactory employee performance, attendance, or behavior. These actions include

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Counseling, Written Warning, Written Warning with Probation, and Termination. Each action in the performance improvement process is documented in the Performance Improvement Plan. Performance Improvement Plan (PIP): the form used to describe any action in the Performance Improvement Process, from Counseling through Termination. The supervisor uses the PIP to describe the performance, behavior, or attendance problem, outline specific improvements that are needed, and provide a timeframe for improvements to be made. Note: At the employees request, Performance Improvement Plans that are more than two years old will be removed from his/her personnel file. Counseling: a formal conversation between a supervisor and an employee used to inform the employee that an issue exists with his/her performance, attendance, or behavior and to detail the precise action needed by the employee to address the identified issues. It is often the first action taken in the Performance Improvement Process. Written Warning: a serious, formal, documented discussion between a supervisor and an employee used to inform an employee about his/her unsatisfactory performance, attendance, or behavior and to detail specific improvements that are needed. A Written Warning may be used: A. When Counseling has not been effective in bringing about identified performance improvements. B. To address repeated and/or ongoing work-related issue(s). C. As the first action taken in the Performance Improvement Process when the performance, behavior, or attendance issue or circumstances warrant(s) this response. Written Warning with Probation: a serious, formal, documented discussion between a supervisor and an employee used to inform an employee about his/her unsatisfactory performance, attendance, or behavior and detail specific improvements that are needed. It includes a specific period of probation (e.g., 30, 60, or 90 days) during which the employees performance, attendance, or behavior must improve or a recommendation for termination may be made. A Written Warning with Probation may be used: A. When Counseling and/or a Written Warning has/have not been effective in bringing about identified performance improvements. B. To address repeated and/or ongoing work-related issue(s). C. As the first action taken in the Performance Improvement Process when the performance, behavior, or attendance issue or circumstances warrant this response. Termination of Employment: is an option in the Performance Improvement Process that may be used: A. When an employee fails to improve his/her performance, attendance, or behavior through a Performance Improvement Plan (PIP), or

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B. Immediately, without prior notice or without a prior PIP, in instances of gross misconduct or serious negligence or circumstances under which the supervisor, in consultation with Human Resources, determines that the nature, frequency or severity of the work-related problem warrants such action. Administrative Leave: temporary removal from the work environment of an employee by Human Resources, with or without pay, following an allegation of misconduct that requires an investigation and review of the related facts. Administrative Leave will occur prior to initiating a PIP. Gross Misconduct or Serious Negligence: any behavior(s), action(s) or lack of action by an employee, that warrant(s) serious disciplinary action or acceleration of the PIP including, but not limited to:

Negligence or failure to attend to customer needs that has the potential to cause harm to a customer, fellow employee, patient, visitor, or student. Insubordination, which is defined as refusal to carry out a specific, legal, and workrelated directive or request issued by an appropriate manager. Inappropriate or unauthorized release, discussion, or disclosure of confidential information. Unauthorized possession, use, theft, or damage to property of the University, fellow employees, students, visitors, and/or patients. Unauthorized possession, use, consumption, sale, or transfer of illegal drugs or alcohol, weapons, or explosives on University property or while fulfilling the duties of a University employee. Reporting to work under the influence of drugs and/or alcohol. (See policy on Drug and Alcohol Free Workplace.) Falsifying and/or omitting information on University records and/or requests for information, including but not limited to employment applications, time and attendance records, and patient medical records. Violation of any law, policy, regulation, or practice, including those related to principles of customer service and/or the Code of Conduct. Excessive absenteeism or tardiness or leaving the work area or University premises without prior permission of supervisor/manager. (See policy on Attendance.) Sleeping while on work time. Actual or threatened violence in the workplace. (See Workplace Anti-Violence Policy). Unlawful or improper conduct while on work time. Conviction of a crime which may call into question the employees ability to properly carry out the responsibilities of his/her position.

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V. PROCEDURES A. Performance Improvement Process The Performance Improvement Process has four (4) formal steps: 1. Counseling 2. Written Warning 3. Written Warning with Probation 4. Termination
o

The University reserves the right to determine what actions are appropriate and in what order such actions are to be taken depending on the facts and circumstances of the situation. In order to identify the appropriate action to take in the process, the supervisor should take into account:

The number, variety, and frequency of performance, attendance, or behavior issues involved. The seriousness of the issue(s). The employees work history. The employees response to prior Performance Improvement Plans.

The supervisor must use a PIP to document any action taken in the Performance Improvement Process. The PIP is to be filled out completely and signed by both the supervisor and the employee (note: signatures are not required for Counseling). If the employee refuses to sign the PIP, the supervisor must note this refusal above the employees signature line. Each of the actions in the Performance Improvement Process is detailed below. 6. Counseling . Prior to the Counseling session, the supervisor will complete a PIP. 1. During the Counseling session, the supervisor should: 2. Provide the employee with a copy of the PIP. 3. Clearly and concisely explain the performance issue(s) that need to be improved, providing examples. 4. Communicate expectations for change, including the timeframe. 5. Answer employee questions and address his/her concerns. 6. Offer the employee the opportunity to write comments on the PIP. a. At the conclusion of the meeting: 1. The supervisor and employee should agree upon a date and time to meet to review progress.

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2. If the employee disagrees with the action taken, the supervisor should advise the employee that s/he may contact the appropriate HR Partner. 3. The supervisor will place a copy of the Counseling PIP in the employees Departmental file. (Human Resources does not require a copy of a Counseling PIP at this time). b. After the meeting, and while the PIP is in effect: 1. The supervisor and employee should meet to assess the employees progress towards identified goals. 2. The supervisor must document follow-up meetings and progress on the PIP. 3. If the employees performance has not improved or shown sustained improvement or if new problems have developed during the timeframe established in the PIP, the supervisor will consult with the appropriate HR Partner and will decide the appropriate action to take in the Performance Improvement Process (e.g., Written Warning, Written Warning with Probation, or Termination). 7. Written Warning . Before having a performance discussion with the employee and issuing a Written Warning, the supervisor: 1. Should consult with the appropriate HR Partner. If desired, the supervisor may also request that the HR Partner participate in the performance discussion. 2. Will document the specific performance, attendance, or behavior issue(s) and improvements needed in a PIP, indicating that this is a Written Warning. Observations should be supported with examples and documentation, when available, including the PIP used for Counseling. a. During the performance discussion in which a Written Warning is issued, the supervisor should: 1. Provide the employee with a copy of the PIP. 2. Clearly and concisely explain the performance issues that need to be improved, providing examples. 3. Communicate expectations for change, including the timeframe. 4. Answer employee questions and address his/her concerns. 5. Offer the employee the opportunity to write comments on the PIP. b. At the conclusion of the meeting:

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1. The supervisor and employee should sign the PIP. If the employee refuses to sign the PIP, the supervisor must note this refusal above the employees signature line. 2. If the employee disagrees with the action taken, the supervisor should advise the employee that s/he may contact the appropriate HR Partner. 3. The supervisor should make a copy of the PIP for the employee, a copy for the employees departmental file, and a copy for Human Resources. A copy of the signed and dated PIP detailing the Written Warning and a copy of any related Counseling PIPs (if applicable) must be sent to Human Resources. 4. The supervisor and employee should agree to meet regularly to review progress. c. After the Written Warning is issued, and while the PIP is in effect: 1. The supervisor and employee should meet regularly to assess the employees progress towards identified goals. 2. The supervisor must document follow-up meetings and progress on the PIP. 3. If the employees performance has met the goals and expectations described in the PIP, the supervisor will document that s/he has successfully completed the PIP. 4. If the employees performance has not improved or shown sustained improvement or if new problems have developed during the timeframe outlined in the PIP, the supervisor will consult with the appropriate HR Partner and will decide the appropriate action to take in the Performance Improvement Process (e.g., Written Warning with Probation, or Termination). 8. Written Warning with Probation . Before having a performance discussion with the employee and issuing a Written Warning with Probation, the supervisor: 1. Should consult with the appropriate HR Partner. If desired, the supervisor may also request that the HR Partner participate in the performance discussion. 2. Will document the specific performance, attendance, or behavior issue and improvements needed in a PIP, indicating that this is a Written Warning with Probation. Observations should be supported with documentation, including the PIP used for Counseling and/or Written Warning. a. During the performance discussion in which a Written Warning with Probation is issued, the supervisor should:

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1. Provide the employee with a copy of the PIP. 2. Clearly and concisely explain the performance issues that need to be improved, providing examples. 3. Communicate expectations for change, including the timeframe. 4. Answer employee questions and address his/her concerns. 5. Offer the employee the opportunity to write comments on the PIP. b. At the conclusion of the meeting: 1. The supervisor and employee should sign the PIP. If the employee refuses to sign the PIP, the supervisor must note this refusal above the employees signature line. 2. If the employee disagrees with the action taken, the supervisor should advise the employee that s/he may contact the appropriate HR Partner. 3. The supervisor should make a copy of the PIP for the employee, a copy for the employees departmental file, and forward the original to Human Resources along with any supporting documents including any related Counseling or Written Warning (if applicable). 4. The supervisor and employee should agree to meet regularly to review progress. c. After the Written Warning with Probation is issued, and while the PIP is in effect: 1. The supervisor and employee should meet regularly to assess the employees progress towards identified goals. 2. The supervisor must document follow-up meetings and progress on the PIP. 3. If employees performance has met the goals and expectations described in the PIP, the supervisor will document that s/he has successfully completed the PIP. 4. If the employees performance has not improved or shown sustained improvement or if new problems have developed during the timeframe outlined in the PIP, the supervisor will consult with the appropriate HR Partner and will decide the appropriate action to take in the Performance Improvement Process (e.g., continue the Written Warning with Probation by extending the probationary period or Termination). 9. Termination of Employment . Before terminating an employee:

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1. If Termination of Employment appears to be warranted, as described in Section IV, the supervisor must consult with the appropriate HR Partner to review the circumstances and related documentation. 2. Once approved by Human Resources, the supervisor will complete a PIP for termination, and a termination letter will be prepared by the HR Partner. This letter will include the general reason(s) for the Termination of Employment, the effective date of termination, and applicable information regarding final pay, continuation of benefits, preliminary retirement plan distribution and any other matters deemed appropriate. a. The Termination Meeting: 1. The supervisor will meet with the employee privately to inform him/her of the termination decision and to provide him/her with the PIP and the termination letter from Human Resources. When possible, this will be done in the presence of the appropriate HR Partner or designee. 2. At the termination meeting, the supervisor and the employee will sign the PIP. If the employee refuses to sign the PIP, the supervisor must note this refusal above the employees signature line. The supervisor will make a copy of the PIP for the employee, a copy for the employees departmental file, and send the original to Human Resources along with a copy of any supporting documents including those used in previous stages of the Performance Improvement Process (if applicable). 3. At the termination meeting the supervisor will collect from the employee the items outlined in the Termination Checklist to be provided by Human Resources. b. Following the termination meeting, the supervisor will complete the Termination Checklist and a Personnel Action Form and submit both to Human Resources. Administrative Leave Pending Investigation
o

It may, at times, be necessary for Human Resources to conduct an investigation prior to implementing a Performance Improvement Plan. When an investigation is warranted, the HR Partner will place the employee on Administrative Leave, with or without pay, pending completion of the investigation. An investigation should be completed as soon as reasonably possible. During an administrative leave, all Drexel property in the possession of the employee (Dragon card, keys, etc.) should be collected and notice is to be given by the supervisor or his/her designee to the Information Resources & Technology (IRT) department to suspend access to systems until the investigation is complete.

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0. At the conclusion of the investigation, if the employee is found to be at fault, appropriate action should be taken, up to and including termination. 1. If the employee is terminated, the period of the investigation is without pay and the employees last day should be listed as the last day worked. 2. If it is determined that termination is not warranted but performance improvement is needed, the employee should be reinstated with pay for the period of the investigation and, if necessary, an appropriate PIP should be implemented. 3. At the conclusion of the investigation, if the employee is found not to be at fault, and action is not warranted, the investigator should provide written notice of his/her findings to the employee and the employee should be reinstated with pay for the period of the investigation. Inquiries regarding this policy can be directed to the Human Resources Department.

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human resource management practices explain variation between companies in profit and productivity?
In the 1990s, research literature in the organisational sciences has been dominated by the question of whether HRM practices make a difference to company performance. There is now a considerable body of work proposing that high quality people management can provide firms with a source of competitive advantage that it is difficult for competitors to imitate. It is the management of human capital, rather than physical capital, that is seen as the most important determinant of company performance. Indeed, some studies in the United States have demonstrated a relationship between HRM and performance (egHuselid, 1995; MacDuffie, 1995).

However, the research described here is a progression from previous HRM and performance research in three ways. First, we did not rely on postal questionnaires to gather data on HRM practices, but instead employed face-to-face in-depth interviews with senior management. The validity of the data was further enhanced by the collation of formalized documentation from senior managers, so that responses about the existence of practices relating to, for example, appraisal systems or training and development could be validated. Also, the researchers toured the company site observing practices and procedures in action, and talking to employees about their experiences. Second, we also assessed other company practices (eg quality emphasis, investment in computerised technology) to investigate their differential impact on company performance when compared to HRM practices. Third, we know of no other work in the UK that relates HRM practices to company financial performance. Although, there are differences across commentators as to what constitutes good HRM practices, many writers (eg Bailey, 1993; Guest, 1997; Huselid, 1995) have argued that HRM practices can improve company

performance by: increasing employee skills and abilities promoting positive attitudes and increasing motivation
providing employees with expanded responsibilities so that they can make full use of their skills and abilities. The three causal routes from HRM to performance described above provide a basis for determining good or high performance HRM practices. HRM practices can influence employee skills through the use of valid selection methods to hire appropriately skilled employees and through comprehensive training to develop current

employees.

HRM practices that may encourage the development of a committed and motivated workforce include the use
of performance-related pay or high levels of basic pay. We might also expect that more positive employee attitudes will result from a policy of harmonization (reduction of differences in terms and conditions between managers and

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workers, such as a shift from hourly to salaried compensation) and from employee involvement (such as through extensive communication to all employees and the use of quality improvement teams). Finally, firms can make full use of a skilled and motivated workforce by promoting job designs which provide enriched jobs for employees in terms of variety, skill flexibility and increased autonomy, whereby employees have responsibility for such activities as problem solving, maintenance, scheduling and quality assurance. The use of

work teams may also positively affect productivity.


The HRM practices examined in this study are shown in Table 1 and broadly reflect the high performance practices discussed in the research literature. The practices were assessed through in-depth interviews with senior management using a semi- structured interview schedule, supported by relevant documentation and tours of the

workplace.

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