Table of Contents

Introduction .............................................................................................................................................. 1 LO1- Understand the importance of business processes in delivering outcomes based upon business goals and objectives ................................................................................................................................. 2 LO1-1.1: Evaluate the interrelationship between the different processes and functions of the organisation ......................................................................................................................................... 2 LO1-1.2: justify the methodology to be used to map processes to the organisations goals and objectives ............................................................................................................................................. 3 LO1-1.4: Impact of the legal and regulatory framework on Human Resource Management: ......... Error! Bookmark not defined. LO2-2.1: Analyse the reason for Human Resource Planning in Organisation: ....................................... 5 LO2-2.2: Stages of Human Resource Planning in Organisation: ............................................................ 7 LO2-2.3: Compare Recruitment and Selection Process in Two Organisation:........................................ 8 LO2-2.4: Effectiveness of Recruitment and Selection Process in Two Organisation: .......................... 16 LO3-3.1: Link between motivational theory and reward: ...................................................................... 18 LO3-3.2: Process of Job evaluation and other factors determining pay: ............................................... 23 LO3-3.3: Effectiveness of reward system in different context: ............................................................. 25 Recent changes to reward .............................................................................................................. 27 Reward objectives .......................................................................................................................... 27 Views on reward system effectiveness .......................................................................................... 28 LO3-3.4: Methods that used by organization to monitor performance: ................................................. 28 Reference: .............................................................................................................................................. 31

Introduction
An organization is driven by human capital and the quality and effectiveness of the organisation is determined by the quality of the people that are employed. the resources of men money material and machine are collected and coordinated through people. Without people organisation cannot exist. Success for most organisations depends on finding the employees with the skills to successfully perform the tasks required to attain the companys strategic goals. Management decisions and processes for dealing with employees are critical to ensure that the organisation gets and keeps the right staff.

Personnel management refers to the managerial function of estimating and classifying of human resources requirements for meeting organisational goals. It involves strategies that ensure sufficient staff, a right combination of talent and performance in jobs. Human resource management (HRM) is the governance of an organizations

employees. HRM is sometimes referred to simply as human resources (HR). A companys human resources department is responsible for creating, implementing and/or overseeing policies governing employee behaviour and the behaviour of the company toward its employees. Human resources are the people who work for the organization; human resource management is really employee management with an emphasis on those employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI). Areas of HRM oversight include among many others -- employee recruitment and retention, exit interviews, motivation, assignment selection, labor law compliance, performance reviews, training, professional development, mediation, and change management.

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LO1- Understand the importance of business processes in delivering outcomes based upon business goals and objectives
Business Process A collection of related, structured activities/tasks that produce a specific service or product for a particular customer is referred to business process/business method.

Process evaluating of any organization is an important task. By doing so we can understand how well or how poorly a process is running, it also depicts how the internal and external processes work to meet the ultimate objectives of the organization. Without this process evaluation we cannot decide whether the process is suited with the company objectives or not, or whether there is any need for modification or full change. We cannot also decide in which direction the organization will be in future days.

LO1-1.1: Evaluate the interrelationship between the different processes and functions of the organisation
A business service represents the added value that an organization delivers to its stakeholders. We can make a difference between internal and external services that a business provides: Internal services mean the added value that is delivered within the domain in which the service belongs to. External services represent the added value that is delivered to other stakeholders (i.e. customers). A business function is an area that the organization wants to pay attention to (e.g. by putting energy into, structurally committing resources to etc) in order to support its business goals. A business function can therefore be positioned as a grouping of internal behavior based on a certain criteria (for example location (same department), communication, required skills, shared resources and shared knowledge). A business function represents a part of the added value of on organization.
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A collection of related, structured activities/tasks that produce a specific service or product for a particular customer is referred to business process/business method. A business process can be constructed from sub processes or activities. A business process is triggered by one or more business events. Every activity is part of a business function.

A typical organization has its functions as Administration, Production, Finance & Accounts, Human Resources, Sales and Marketing, Research and Development etc. Each of these functions needs to work together so that the whole organisation every departments possess same aims and objectives and contributes towards achieving organizational goal.

As we have defined process as an activities or set of activities of an organization, it is clear from the definition that process of an organization and functions are related. And each functions of the organization are also related to each other. For example finance prepares a budget for the organization with the consultation of all functional managers then each department has its own target for the year. Based on the target production unit produces the services or goods, after that marketing department has the responsibility to sell the targeted products or services as desired. And human resource department employ personnel to meet the organizational goal. So from here also we can see that every department is somewhat linked with each-other.

LO1-1.2: justify the methodology to be used to map processes to the organisations goals and objectives
Process Map A process map is an instrument to visually describe how the work flows. It can also be referred as a communication tool or planning tool that helps to manage the organization.
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Inputs, Outputs, Activity steps, Decision points, and Functions are the tool for mapping a process. It gives us certain answers like: what is happening, where it is happening, when it is happening, who is doing it and how inputs and outputs are handled and distributed. So process mapping basically is a flow chart of an organizational activity. With the help of process mapping we can readily identify what is going on within the organization at a given point of time and if necessary we can modify the course of action based on the organizational goal and objectives. Process mapping means creating a model that shows the relationships between different activities, people, data and objects involved in the production of a specified output. I normally document business processes using the IDEF methodology (The Integrated DEFinition methodology is a suite or family of methods that supports a paradigm capable of addressing the modeling needs of an enterprise and its business areas) that was developed in 1994 by the US air force. It is simply is an accepted industry standard, the advantages of using IDEF are that it is a well published standard that customers can get from the internet. This methodology is easily assessable and proven as a strong industry standard supported by most process modeling tools.

LO1-1.3 evaluate the output of the process and the quality gateways
This type of evaluation is performed while a project is being implemented, with the aim of improving the project design and functioning while in action. An example given in monitoring and evaluating urban development programs, a handbook for program managers and researchers by Michael bamberger, describes a monitoring study that, by way of rapid survey, was able to determine that the amount of credit in a micro credit scheme for artisans in Brazil was too small. The potential beneficiaries were not participating due to the inadequacy of the loan size for their needs. This information was then used to make some important changes in the project. Bamberger defines it as an internal project activity designed to provide constant feedback on the progress of a project, the problems it is facing, and the efficiency with which it is being implemented. An evaluation studies the outcome of a project changes in income, housing quality, benefits distribution, cost-effectiveness with the aim of informing the design of future projects. An
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example from monitoring and evaluating organizational process for its performance describes an evaluation of a cooperative program in El Salvador that determined that the cooperatives improved the lives of the few families involved but did not have a major impact on overall employment. Bamberger describes evaluation as mainly used to help in the selection and design of future projects. Evaluation studies can assess the extent to which the project produced the intended impacts increases in income, better housing quality, and the distribution of the benefits between different groups, and can evaluate the cost-effectiveness of the project as compared with other options

LO2-2.1: Analyse the reason for Human Resource Planning in Organisation:

A general human resource plan (HRP) is done by Human Resource Manager or Department. Although there are two categories that HRP may be divided into: hard and soft. Hard ones are only undertaken by HR specialists. The latter one usually involves HR specialists, line managers and possibly other staff (Beardwell and Claydon, 2007). Numerous factors that influence the company are out of its control. However, there are factors that affect directly how companies recruit new employees. Human resource planning analyses these factors to make sure that the business recruits the most talented candidates when they are needed.

Importance of Planning Planning is not as easy as one might think because it requires a concerted effort to come out with a programme that would easy your work. Commencing is complicated, but once you start and finish it you have a smile because everything moves smoothly.

Planning is a process that have to be commenced form somewhere and completed for a purpose. It involves gathering information that would enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the objectives of the Organization. There are many factors that you have to look into when deciding for an HR Planning programme.

HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the Managing Business Activities to Achieve Results Page 5

HR field. When HR Planning is applied properly in the field of HR Management, it would assist to address the following questions:

1. 2. 3. 4.

How many staff does the Organization have? What type of employees as far as skills and abilities does the Company have? How should the Organization best utilize the available resources? How can the Company keep its employees?

HR planning makes the organization move and succeed in the 21st Century that we are in. Human Resources Practitioners who prepare the HR Planning programme would assist the Organization to manage its staff strategically. The programme assist to direct the actions of HR department.

The programme does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as well. This augment motivation and the Organization would become a good place to work. Management information system. HR Planning forms an important part of

HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems.

Inadequacy of HR Planning Poor HR Planning and lack of it in the Organization may result in huge costs and financial looses. It may result in staff posts taking long to be filled. This augment costs and hampers effective work performance because employees are requested to work unnecessary overtime and may not put more effort due to fatigue. If given more work this may stretch them beyond their limit and may cause unnecessary disruptions to the production of the Organization. Employees are put on a disadvantage because their live programmes are disrupted and they are not given the chance to plan for their career development.

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The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part of the Organizations budget, workforce Planning enable the Organization to provide HR provision costs. When there is staff shortage, the organization should not just appoint discriminately, because of the costs implications of the other options, such as training and transferring of staff, have to be considered.

LO2-2.2: Stages of Human Resource Planning in Organisation:

Steps in HR Planning Forecasting HR Planning requires that we gather data on the Organizational goals objectives. One should understand where the Organization wants to go and how it wants to get to that point. The needs of the employees are derived from the corporate objectives of the Organization. They stern from shorter and medium term objectives and their conversion into action budgets (eg) establishing a new branch in New Dehli by January 2006 and staff it with a Branch Manager (6,000 USD, Secretary 1,550 USD, and two clerical staff 800 USD per month. Therefore, the HR Plan should have a mechanism to express planned Company strategies into planned results and budgets so that these can be converted in terms of numbers and skills required.

Inventory After knowing what human resources are required in the Organization, the next step is to take stock of the current employees in the Organization. The HR inventory should not only relate to data concerning numbers, ages, and locations, but also an analysis of individuals and skills. Skills inventory provides valid information on professional and technical skills and other qualifications provided in the firm. It reveals what skills are immediately available when compared to the forecasted HR requirements.

Audit We do not live in a static World and our HR resources can transform dramatically. HR inventory calls for collection of data, the HR audit requires systematic examination and analysis of this data. The Audit looks at what had occured in the past and at present in terms of labor turn over, age and sex groupings, training costs and absence. Based on this information, one can then be able to predict what will happen to HR in the future in the Organization.

HR Resource Plan Here we look at career Planning and HR plans. People are the greatest asserts in any Organization. The Organization is at liberty to develop its staff at full pace in the way ideally suited to their individual Managing Business Activities to Achieve Results Page 7

capacities. The main reason is that the Organizations objectives should be aligned as near as possible, or matched, in order to give optimum scope for the developing potential of its employees. Therefore, career planning may also be referred to as HR Planning or succession planning.

The questions that should concern us are: a) Are we making use of the available talent we have in the Organization, and have we an enough provision for the future? b) Are employees satisfied with our care of their growth in terms of advancing their career?

Assignment of individuals to planned future posts enable the administration to ensure that these individuals may be suitably prepared in advance.

Actioning of Plan There are three fundamentals necessary for this first step. 1) Know where you are going. 2) There must be acceptance and backing from top management for the planning. 3) There must be knowledge of the available resources (i.e) financial, physical and human (Management and technical). Once in action, the HR Plans become Corporate plans. Having been made and concurred with top management, the plans become a part of the companys long-range plan. Failure to achieve the HR Plans due to cost, or lack of knowledge, may be a serious constraints on the long-range plan

LO2-2.3: Compare Organisation:

TESCO

Recruitment

and

Selection

Process

in

Two

The number and categories of people required should be specified in the recruitment. Program which is derived from Human resource plan (A Handbook of Human Resource Management Practice page409- 410) .It means that recruitment is linked with planning. Is the process of developing a pool of qualified applicants who are interested in working for the organization and from which the organization might reasonably. Select the best individual or individuals to hire for a job. page 183) To select that kind of individual attraction needed. Ways of attracting right person for the correct job Walk-ins Managing Business Activities to Achieve Results Page 8 (International Students Edition Managing Human Resource Edition 13

 Employee referrals Advertising Websites Professional/ Educational/Association E- recruitment Word of mouth Factors considering setting recruitment plan. Cost Time taken Labor market Mobility of labor Legislation on gender, race, disability discrimination. Methods of recruiting I. Internal Job posting Promoting & transfer Union through assigning Retired employees & dependents of deceased Employee referrals II. External Advertising Employment agencies College recruits Employee referrals Walk-ins E-recruitment III. Alternative ways Leasing employees Overtime Part time workers Temporally workers Out sourcing Selection is the process of picking individuals who have relevant qualification to fill jobs in an organization. Selection Process

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Concerned with identify the best candidates or candidates for job form among the pool of qualified applicants developed during recruiting process.

Steps in selection Medical exam/drug test

Supervisor/team interview

Back ground investing Employment testing aptitude ,achievement

Initial interview in HR department

Completion of application

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When we considering about the recruitment process Tescos the process of recruiting depends on the job that available and mostly internal recruiting method. 1. As first Tesco looks for Internal Talent plan to fill the vacancies. 2. This process that lists current employees that looking for a move either at same level or on promotion. 3. If there isnt any suitable person internal management develop a training and development program. 4. And use internal E-recruitment method to advertises post in Tesco intranet. 5. If external recruitment methods used the advertise in their public web site www.tescocareers.com 6. External vacancy board. 7. Made applicant online for managerial positions. 8. Chosen applicants must have an interview followed by attendance centre. 9. People interested in store-based jobs with Tesco can approach store with their CV / register through job centre. 10. The store prepares a waiting list of not selected applicant to make a pool of suitable recruits in order to call if another vacancy occurs. 11. For harder to fill or more specialist jobs, such as bakers and pharmacists external recruitment methods used. Like its public web site & offline media, television, radio or advertising Google or in magazines such as appointment journal.

Human Resources planning.

Selection process

Performance appraisal Job analysis Training & development Basis line management function Compensation

Uniliver
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Recruiters qualification Recruiting is the process of finding & attracting capable applicants for employment. The process begins when new recruits are required & ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.

Manager becomes involves in this process. However in large organization, like the Unilevers Specialists are often used to find & attract capable analyst they are called recruiters. First, Unilever is such a big organization that requires huge man power every year for its always boosting operations in various level and arena. However for common business operations they need Three type of manpower 1. Fresh graduates as knowledge worker, 2. Specialist experienced people for special purpose 3. People for Skilled and labor based events So in our discussion we will focus on all the three types.

Fresh graduates as knowledge worker Commonly we discuss and learn major about this level recruitment and selection. The fresh graduates recruitment is in fact the main and major recruitment event for Unilever. From across the country they get people for their recruitment. The universities in the country provide the people to be knowledge worker in big organizations like unilever and such. For this they highly suit the business graduates Passed from reputed business school or institutes both from country and from abroad. The discussion is now designed as to the following four terms: 1. Personnel planning and vacancy announcement 2. Nature of Application form 3. Recruiters qualification 4. channels of recruitment 5. Recruitment- Constraints and challenges

Personnel planning and vacancy announcement Human Resource department headed by The HRM, receives data about need of personnel, the vacancy information is then analyzed by HRM in collaboration with the finance department with financial

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feasibility of the recruitment. After judging the feasibility the approved number of vacancies is informed to the job market through strong mass media. As means of media they use The internet, Online based job portals English and bangla news paper On campus recruitment From Intern inventory. Recruiters qualification Recruitment qualification for entry-level employees: You must be graduated within less than three years, or will graduate within the next 12 months form a reputable university. You must be within 28 years of age. Recruitment qualification for labor based task: You must physically fit and skilled in the particular task.

Methods of recruitment Recruitment channel Normally we know about two types of recruitment channel those are 1. External recruitment channel 2. Internal recruitment channel 1. External recruitment channel When job openings cannot be filled internally, the HR department must look outside the organization and basically for UBL, recruitment of fresh graduates is done through this means. There are 8 ways for external recruitment in the UBL, which occurs in direct or indirectly for various level of recruitment. Those are1. Employee referrals 2. Advertising 3. Educational institutions & Professional associates

International recruitment
Employee referrals For lower level workers, Unilever follow the employee referrals procedures. This is the procedures when existing employees refer one new and the new is considered to be further judgment. Advertising Managing Business Activities to Achieve Results Page 13

UBL next to employee referrals in fact for fresh graduates majorly follow the advertisement procedure for recruiting purposes. They advertise in the reputed English and Bengali National papers. They also use the internet for online application.

Educational institutions & Professional associates More over the organization takes its manpower from the universities and educational institutions across the country. The nationwide universities and its important institutes provide the potential graduates as the employee of the organization.

International recruitment Sometimes, especially in importance of cases international recruitment occurs in ULB. However such rare events happen if the candidate stays in abroad or are working in international company on foreign land.

Internal recruitment channel Current employees are a major source of recruits for all but entry- level positions of unilever Bangladesh ltd.. Whether for promotions or for lateral job transfers, internal candidates already know the already informal organization and have detail information about its formal policies. In fact for unilever this short of recruitment is occurred only with especial purpose experienced employee recruitment. Recruitment : constraints and challenges Recruiters face such common constraints which are: a. Biasness: Most of the time, the organizations employers try to appointment their relatives, familiar person. b. Competition of talent There is a lack of vast talent people in Bangladesh for the special task. The potential job applicants most of the time cant meet up Unilever requirement. Few talent guys who has already appointed with other multinational company d. Job requirement People with greater experience usually require a higher level of job. In our country, there are vast population but they are not so skilled in working with hard labor.

SELECTION PROCESS IN UNILEVER Selection is the process of select the best candidates for the job by using various tools and techniques. In our country, recruitment and selection process work simultaneously. Those are joined term as Managing Business Activities to Achieve Results Page 14

employment function of the organization and this employment function is stated here for Unilevers practices.

Reception of application After accomplishing the recruitment process, Unilever go to the selection process where they start the process with the reception of application form filled up through internet online form. After scrutinizing the data, they select applications for written test. Employment test This written test measures the candidates 1. Analytical ability 2. Computation ability 3. Verbal skill 4. Written skill 5. General knowledge More above 65% marks ensures applicants pass.

Assessing candidate through interview Mainly three steps are followed in the selection procedure. In the first stage the candidates are invited for a viva with sales and training manager, Dhaka in his Gulsan office.A human resource manager also exist there. In this viva the candidates situation handle ability is measured.

Second phase: It is the viva with the general sales and operation manager ( GOSM), and trade marketing manager .in this stage individual skill is measured. The question tries to measure out the fitness of the candidate for the post. Third phase: In this stage the applicant face the HRD customer development team (CDT) this phase measure the applicability of the applicants potential for the jobs. In these stage why the applicant prefers the Unilever and why it would like to join the expected team.

Physical ability test The physical test is administered by Apollo Hospital Dhaka to measure the HIV, Hepatitis B, C or such many diseases in its applicants health and fitness for job effort. Managing Business Activities to Achieve Results Page 15

Work samples For some technical jobs Unilever follows the work sample test on particular employee like the one of Finance and IT. Hiring decision Finally the every step success ensures an applicant join in the Unilever family.

LO2-2.4: Effectiveness of Recruitment and Selection Process in Two Organisation:

In the external management recruitment selection process they use few uniform stages.

Vacancies advertised on website and other media, such as national press

Successful candidates invited for interview

Successful candidates from screening attend Managing Business Activities to Achieve Results

Unsuccessful candidates sent letter Page 16

Assessment Centre

Interview means Face to face conversations between prospective job applicant and representatives of the organization (International Students Edition Managing the Human Resources -Page230).Techniques of handling interviews. They are Situational interviews- applicant is questioned about a particular incident and asks how he reacts. Structured interviews-interview to collect information about beliefs, facts attitude and behaviors. It can present one to one, may be through Internet or telephone. Been directed before and scripted the questions what staging standardized interview method so they can evaluate the candidate. Unstructured interview- interview to explore wide range the candidate and its non-directive, nonstructured and responded led which cover variety of topics through open questions. Semi Structured interview- combination of both unstructured and structured to collect qualitative information about views opinions and experiences by asking open ended and close ended questions. Thus Tesco use two interview on screening process there are benefits like Provide opportunities for interviewers to ask probing questions about the candidates experience and to explore his suitableness Enable interviewers to describe the job (a realistic job preview) and the organization in more detail, suggesting some of the terms of the psychological contract; Provide opportunities for candidates to ask questions about the job and to clarify issues concerning training, career prospects, the organization and terms and conditions of employment; enable a face-to-face encounter Give the candidate the same opportunity to assess the organization, the interviewer and the job. (A Handbook Of Human Resource Management Practice page 440-441) Using assessment Centre for screening is another effective method that Tesco use.

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Assessment Centre is used in selecting the applicants who choose from first interview. The assessment centre takes place in store and run by managers. They help to provide constancy in the selection process. Applicants are given various exercises, including team work problem solving exercises like critical incident analysis etc. Candidates approve by the internal assessment centre then face to the last interview to find out whether candidate has job requirement. Advantages in this method are Can observe candidates in the problem solving process and predict their future performance fulfill the requirements to handle the job. Can understand new recruits strengths and weaknesses before recruiting. Can make a pool of employees that reject in selection this time but up to the level of employee need to recruit future employee vacancies. Identify the skills, knowledge, and attributes that employee shows and the job he should be assign to. Minimize the induction cost.

LO3-3.1: Link between motivational theory and reward:

Motivation in simple words may be understood as the set of forces that cause people to behave in certain ways. It is a process that starts with a physiological deficiency or need that activities behaviour or a drive that is aimed at a goal or an incentive.

The concept of motivation occupies a central place in the discipline of Organizational Behaviour. It is a concept, which has received the maximum attention from the academicians and researchers alike. Since a motivated employee is highly productive and highly quality oriented, the managers are also interested the concept of motivation.

Most people understand the concept of intrinsic satisfaction or intrinsic motivation, i.e. when an activity is satisfying or pleasurable in and of itself. Naturally, these activities are things we like and want to do. For most of us, intrinsically enjoyable activities are things like eating, resting, laughing, playing games, winning, creating, seeing and hearing beautiful things and people, being held lovingly, having sex, and so on. To do these things we don't need to be paid, applauded, cheered, thanked, respected, or anything-commonly we do them for the good feelings we automatically and naturally get from the activity. Intrinsic rewards also involve pleasurable internal feelings or thoughts, like feeling proud or having a sense of mastery following studying hard and succeeding in a class.

Many, maybe most, activities are not intrinsically satisfying enough to get most of us to do them Managing Business Activities to Achieve Results Page 18

consistently, so extrinsic motivation needs to be applied in the form of rewards (positive reinforcements), incentives, or as a way to avoid some unpleasant condition ("negative reinforcement" or punishment). Examples: You work doing an ordinary job for pay. You study for good grades or to avoid failing or to prepare for a good future. You do housework to get a clean, organized house and/or a spouse's appreciation or to avoid her/his disapproval. A teenager comes home from a date on time in order to avoid being grounded. These are all activities that are commonly sustained by external pay offs, not because you love working, studying, cleaning, and coming home early. Are rewards, particularly money rewards, really motivators? The answer to this question is YES and NO. Money is understood to be powerful motivator for more than one reason. In the first place, money is fundamental for completion of a task. The employee takes pay as the reward for his or her work, and the employer views it as the price for using the services of the employee. Second, as a medium of exchange. Third, money is one of the hygiene factors, and improving maintenance factors is the first step in efforts directed towards motivation. Fourth, money also performs the function of a score card by which employees assess the value that the organization places on their services and by which employees can compare their values to others. Fifth, reinforcement and expectancy theories attest to the value of money as a motivator. Sixth, money acts as a punctuation in ones life. It is an a ttention getting and effect producing mechanism. Money, has therefore tremendous importance in influencing employee behaviour. Seventh, money is easily vulnerable to manipulation. Finally, money will be a powerful motivator for a person who is tense and anxious about lack o money. But behavioural scientists think otherwise. They downgrade monetary rewards as a motivator. They prefer, instead, other techniques such as challenging jobs, goals, participation in decision-making and other non-monetary rewards for motivating employees.

Types of Reward Systems The financial rewards are basically of three types: profit sharing; job evaluation; and merit rating.

Profit Sharing Profit sharing could be on a macro basis or on a micro basis. The former relates to the entire company as a whole and the latter to a particular section or group dealing with a particular activity and/or product. On a macro level, it would be difficult to identify and reward outstanding performance. This is possible on a micro level by treating the particular activity as a cost and profit center by itself. This is easier said than Managing Business Activities to Achieve Results Page 19

done, since overheads and other common services have to be charged and this cannot be done completely objectively. The cost allocation in such cases is somewhat arbitrary and the profit will therefore not be a true reflection of the performance of that particular group or activity.

Job Evaluation In case of job evaluation, the various component factors have to be isolated and evaluated for purposes of inter-job comparison. Each factor is assigned a rating on the basis of a scale agreed beforehand by the union and the management joint committee. The total rating for each job then forms the basis of wage structure. However, there must be a base level, representing, in effect, the 'minimum wage', depending on the nature of work and the geographical area. In some cases and in some countries these are stipulated by law. A typical, though somewhat broad, list of job factors is as follows:

working environment; physical characteristics; mental characteristics; extent of responsibility; training and experience.

In case of managers, the factors are: responsibility; expertise; human relations.

Merit Rating Merit rating has been used as an indicator of performance. Each employee is rated, typically as excellent, good, average or poor, in respect of the following abilities:

communication; human relations, including leadership and motivation; intelligence; judgment; knowledge.

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The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias of the rater who may be too lenient, may not be objective and may also have favorites or otherwise in the group being rated.

Financial Rewards These rewards in organizations help employees to be more committed and motivated to their job and working environment: System rewards are automatically given to all employees for merely being members of their organisation. System rewards can be defined as being the basic wage rates. Individual rewards are given to employees based on the quality and quantity of their performance. Performance related pay (PRP) is seen as an individual reward policy, where pay is rewarded in relation to the volume of output. PRP can cause divisions amongst workers, where employees become more worried about the fact that their colleagues are being paid more than them. Growth rewards are received by employees for job innovation, learning and improvement.

The key to managing performance through rewards is linking the desired performance with the appropriate reward.

Non-financial Rewards In an ever more competitive environment, the aim of organizations must now be to focus on increasing the added value of their employees. This is achieved, by encouraging employees to increase their effort and performance higher than the average standards. This has been carried out using employee appraisals and motivational methods.

Employers have become increasingly aware of the rich potential for good constructive ideas that exist from the employees on the job experiences. One method for using this knowledge is through suggestion schemes, these are becoming highly recognized, as they allow for improvements in all areas of work. These schemes are very flexible and can be readily adapted to meet all kinds of working conditions. Suggestion schemes can be seen as a means of increasing profit and worker participation.

Suggestion schemes aim to improve employee attitudes by directing their attention to the positive and progressive aspects of their jobs. This helps to boost employee morale and increase job satisfaction. It can be identified that if an employee is unhappy in his/her job it reflects on a negative attitude on his/her performance and also with other people. Managing Business Activities to Achieve Results Page 21

Experience in many companies has shown low employee morale reflects on low productivity and increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining morale.

Another method which is not related to pay is the performance appraisal system. This method is used as a means of raising individual performance and identifying development needs. Appraisal systems today are becoming part of the management culture, where managers feel it necessary to appraise and be appraised.

Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding any negative feedback from traditional appraisals. Self rating is an effective way of trying to get the employee to look at what their roles are in relation to business needs.

It is fair to state that employees are not motivated by money alone. Paying different wage rates to employees doing the same jobs can cause more problems than benefits.

There are other incentives to reward employees, other than financial such as appraisals. Appraisals can prove to be an effective means for looking at human resources, as they allow us to:

Ensure that the abilities and energies of individuals are being used effectively. Allow employers to identify better uses of individuals talents and experience. Training needs can also be identified. Future decision making as data of abilities can be kept on file for future reference.

Other examples of incentives/motivators include: Team briefings - Management tell sub-ordinates what needs to be achieved, this opens up the lines of communication, and makes everyone aware of what needs to be done.

Team buildings - Employees are taken on outings to pursue some systematic group exercises led by a trainer or time spent on social activities. The logic is to enthuse a team working ethic. Quality circles - Regular meeting sessions where a group of employees discuss quality related issues.

It can be said that if managers are to be successful, they must focus on strategies that improve the overall performance of the business by using employees as a vital resource which needs to be nurtured and not just developing and implementing control systems to fix short term problems.

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LO3-3.2: Process of Job evaluation and other factors determining pay:

Pay determination In formulating salary offers for employees in new positions (both those new to Brown and those who are transferred or promoted from within the University), the following considerations are taken into account: departmental budget; external equity; internal equity and relevant education, experience and skills. Routinely, salary offers fall within the first quartile of the applicable salary range for the position's grade level. Recommended salaries must be authorized by the appropriate Human Resources Representative or Compensation Services prior to discussing with the candidate. No offer or promise of an offer can be made without authorization by Human Resources.

External Equity is the term used to describe comparative salaries paid in the marketplace where Brown competes to hire and retain similar types of employees. Compensation Services participates in various salary surveys to determine competitive pay practices.

Internal Equity is the term used to describe the comparison of salaries paid to employees working in the same grade or level within the University (both within the department and Universitywide). Brown recruits in various markets to fill positions, depending upon the requirements and level of the position. They are usually as follows:
o o o

Department head level positions and above: national markets Professional and administrative positions below department head level: regional markets Support staff and entry level exempt positions: local markets

Job Evaluation The job evaluation process established the relative value of jobs throughout the university. There are two steps involved in this process: 1. Job Analysis and Job Description - Using a "job profile," the content of each job is analyzed to identify key duties, responsibilities, and qualification necessary to perform the job. Written job descriptions are then prepared to contain this information.

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2. Job Evaluation - A computer assisted job evaluation plan, measuring 17 dimensions of nonexempt work and 28 dimensions of exempt work, is used to evaluate the relative worth of staff positions. This evaluation process focuses on valuing the content of each position in terms of a series of well-defined compensable factors. The factors for clerical, service, technical, and administrative support positions include: a. Knowledge: Minimum required level of specialized training, education, and previous related work experience. b. Skill: The manual and physical skills required to perform the duties of the position. c. Work Complexity: The degree and amount of judgment, initiative and ingenuity involved in accomplishing work. d. Contact with Others: The extent to which the work entails dealing with others in the course of one's regular duties, including the frequency and nature of contacts and the likely results of such contacts. e. Property Protection and Use: The extent to which the position has responsibility for university property, including funds, vehicles and confidential information. f. Work Leadership: The responsibility for directing, instructing and training personnel; and for planning controlling and assigning work. g. Working Environment: The physical conditions encountered during a typical work day. Conditions such as heat, cold, dirt, fumes, hazards, etc. are considered. h. Student Relations: The responsibility for dealing with students, including the nature and frequency of contacts. The factors for professional, administrative, and managerial positions include responsibility for: i. Programs, Projects or Operations: The level in the organization, scope of activities performed, parameters of authority, complexity or nature of responsibilities, and the minimum credentials required to perform the job upon hire. j. Supervision: The number and variety of employees supervised.

k. Employee Relations: Promoting and maintaining satisfactory human relations, morale and effectiveness or subordinates. l. External Contacts: Personally dealing with individuals or organizations outside the university. m. Internal Contacts: Personally dealing with individuals within the university, but outside the direct line of authority of the position, to coordinate activities and task accomplishment.

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n. Investigation or Fact Finding: Activities undertaken to identify facts, and develop ideas, designs or processes. o. Scheduling, Planning and Forecasting: The complexity, variety and nature of the activities involved in determining and carrying out plans and reports. p. Establishing Objectives, Policies, Standards, Procedures, and Practices: The degree of authority to establish standards, and the scope, nature and complexity or these standards. q. Effects of Decisions: Making decisions and commitments which impact the university's resources. r. Student Relations: Personally dealing with students from routine exchanges of information to more complex activities such as counseling. At the conclusion of the job evaluation process, the compensable factors are weighted. A numerical total is then derived and each position is assigned a salary grade which has a salary range A salary range

consists of a:
MINIMUM: The lowest wage paid to a new employee with limited or no experience in this specific position. MIDPOINT: The "market" (or average) wage paid to one who is fully qualified. MAXIMUM: The highest wage paid for jobs in the salary grade.

LO3-3.3: Effectiveness of reward system in different context:

Reward Systems are a critical part of any organization's design. How well they fit with the rest of the systems in an organization has an important impact on how effective the organization is and on the quality of life that people experience in the organization. Over the past decade, some new reward systems practices have become popular in order to align reward systems with the important changes that are occurring in the way organizations are designed and managed (Lawler, 1990; Schuster and Zingheim, 1992).

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These rewards in organisations help employees to be more committed and motivated to their job and working environment:

System rewards are automatically given to all employees for merely being members of their organisation. System rewards can be defined as being the basic wage rates.

Individual rewards are given to employees based on the quality and quantity of their performance. Performance related pay (PRP) is seen as an individual reward policy, where pay is rewarded in relation to the volume of output. PRP can cause divisions amongst workers, where employees become more worried about the fact that their colleagues are being paid more than them.

Growth rewards are received by employees for job innovation, learning and improvement.

The key to managing performance through rewards is linking the desired performance with the appropriate reward. NON-FINANCIAL REWARDS NON-FINANCIAL REWARDS In an ever more competitive environment, the aim of organisations must now be to focus on increasing the added value of their employees. This is achieved, by encouraging employees to increase their effort and performance higher than the average standards. This has been carried out using employee appraisals and motivational methods. Employers have become increasingly aware of the rich potential for good constructive ideas that exist from the employees on the job experiences. One method for using this knowledge is through suggestion schemes, these are becoming highly recognised, as they allow for improvements in all areas of work. These schemes are very flexible and can be readily adapted to meet all kinds of working conditions. Suggestion schemes can be seen as a means of increasing profit and worker participation. Suggestion schemes aim to improve employee attitudes by directing their attention to the positive and progressive aspects of their jobs. This helps to boost employee morale and increase job satisfaction. It can be identified that if an employee is unhappy in his/her job it reflects on a negative attitude on his/her performance and also with other people. Experience in many companies has shown low employee morale reflects on low productivity and increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining morale.

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Another method which is not related to pay is the performance appraisal system. This method is used as a means of raising individual performance and identifying development needs. Appraisal systems today are becoming part of the management culture, where managers feel it necessary to appraise and be appraised. Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding any negative feedback from traditional appraisals. Self rating is an effective way of trying to get the employee to look at what their roles are in relation to business needs. A survey was Conducted in mid-2009 by the e-reward survey, undertaken in partnership with the Institute for Employment Studies, produced up-to-date and revealing information from senior HR and reward practitioners in 173 UK-based organisations employing around two million people. It examines all the main aspects of reward effectiveness and the process of evaluation, shedding light on this relatively little understood area. Recent changes to reward

Before considering reward effectiveness in more detail, respondents were asked the related question of whether they had made changes to any of their key areas of reward in the last three years. The most widespread changes have been made in three areas: reward strategy; bonus and incentive plans; and benefits, allowances, flexible benefits and/or voluntary benefits.

By far the most prominent reason given for such moves is to align with changes in business strategy/reflect business needs, mentioned by almost seven in ten respondents (68 per cent). This was followed by three other pressures for change, each mentioned by around half of respondents: cost/financial pressures, changes driven by the need to reflect/match market practice and to address identified weaknesses/shortfalls/ineffectiveness.

Linked to this, respondents were also asked whether their reward function is under greater pressure to demonstrate the value which they and their reward systems deliver. As many as 83 per cent say they are, with 24 per cent of the whole sample claiming that such pressure is quite substantial.

Reward objectives

To provide further context, respondents were asked to outline their most important reward goals. The three most notable objectives are to align with business strategy; external competitiveness to recruit and retain; and to pay for performance and contribution.

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Considering all reward objectives, most respondents feel that they are only achieving these reasonably effectively (71 per cent), compared with just 2 per cent who say they are highly effective at realising their aims.

In addition, mirroring a trend found in many replies, those in the public sector tend to be less satisfied than their private sector counterparts, giving lower ratings to the delivery of most of their reward objectives.

Views on reward system effectiveness

Underpinning actual reward goals are the systems designed to deliver the various components of reward and most survey participants believe their arrangements can only be described as average.

Nevertheless, while most replies are clustered around a middling assessment, responses are somewhat skewed. A greater proportion of those replying believe their reward systems are superior to their competitors, although a significant minority report that they consider their systems to have some key weaknesses or worse.

On a further slight note of optimism, however, 54 per cent of survey respondents say that their reward systems have improved over the last 12 months, with only 4 per cent believing that they have worsened. The other 42 per cent reckon that effectiveness remains unchanged. When asked about the effectiveness of reward systems relating to their main employee groups, there was not a great deal of difference from the results relating to the whole sample.

Nevertheless, some small differences emerged. Reward systems for executives and senior managers are considered marginally more effective than those used for other groups, while those relating to sales and manual workers are slightly less effective.

Taking a list of 11 specific reward areas everything from reward communications to share plans ratings for their current effectiveness, when expressed on a scale of between 1 and 10, are clustered around the middle. Overall, however, rankings are skewed towards the less effective end.

A number of patterns more generally did emerge. Most notably, reward systems are more likely to be effective in delivering benefits, especially pensions, while systems relating to reward communications and recognition plans tend to be less successful.

LO3-3.4: Methods that used by organization to monitor performance:

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Once an annual ritual, performance appraisal has become a continuous process by which an employees understanding of a companys goals and his or her progress toward contributing to them are measured. Performance measurement is an ongoing activity for all managers and their subordinates. Performance measurement uses the following indicators of performance, as well as assessments of those indicators. 1. Quantity: The number of units produced, processed or sold is a good objective indicator of performance. Be careful of placing too much emphasis on quantity, lest quality suffer. 2. Quality: The quality of work performed can be measured by several means. The percentage of work output that must be redone or is rejected is one such indicator. In a sales environment, the percentage of inquiries converted to sales is an indicator of salesmanship quality. 3. Timeliness: How fast work is performed is another performance indicator that should be used with caution. In field service, the average customers downtime is a good indicator of timeliness. In manufacturing, it might be the number of units produced per hour. 4. Cost-Effectiveness: The cost of work performed should be used as a measure of performance only if the employee has some degree of control over costs. For example, a customer-service representatives performance is indicated by the percentage of calls that he or she must escalate to more experienced and expensive reps. 5. Absenteeism/Tardiness: An employee is obviously not performing when he or she is not at work. Other employees performance may be adversely impacted by absences, too. 6. Creativity: It can be difficult to quantify creativity as a performance indicator, but in many whitecollar jobs, it is vitally important. Supervisors and employees should keep track of creative work examples and attempt to quantify them. 7. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a boundary on creativity. Deviations from policy indicate an employee whose performance goals are not well aligned with those of the company. 8. Gossip and Other Personal Habits: They may not seem performance-related to the employee, but some personal habits, like gossip, can detract from job performance and interfere with the performance of others. The specific behaviors should be defined, and goals should be set for reducing their frequency.

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9. Personal Appearance/Grooming: Most people know how to dress for work, but in many organizations, there is at least one employee who needs to be told. Examples of inappropriate appearance and grooming should be spelled out, their effects upon the employees performance and that of others explained, and corrective actions defined. Performance indicators must be assessed by some means in order to measure performance itself. Here are some of the ways in which performance is assessed from the aforementioned indicators. 10. Manager Appraisal: A manager appraises the employees performance and delivers the appraisal to the employee. Manager appraisal is by nature top-down and does not encourage the employees active participation. It is often met with resistance, because the employee has no investment in its development.

11. Self-Appraisal: The employee appraises his or her own performance, in many cases comparing the self-appraisal to management's review. Often, self-appraisals can highlight discrepancies between what the employee and management think are important performance factors and provide mutual feedback for meaningful adjustment of expectations. 12. Peer Appraisal: Employees in similar positions appraise an employees performance. This method is based on the assumption that co-workers are most familiar with an employees performance. Peer appraisal has long been used successfully in manufacturing environments, where objective criteria such as units produced prevail. Recently, peer appraisal has expanded to white-collar professions, where soft criteria such as works well with others can lead to ambiguous appraisals. Peer appraisals are often effective at focusing an employees attention on undesirable behaviors and motivating change. 13. Team Appraisal: Similar to peer appraisal in that members of a team, who may hold different positions, are asked to appraise each others work and work styles. This approach assumes that the teams objectives and each members expected contribution have been clearly defined.

14. Assessment Center: The employee is appraised by professional assessors who may evaluate simulated or actual work activities. Objectivity is one advantage of assessment centers, which produce reviews that are not clouded by personal relationships with employees.

15. 360-Degree or Full-Circle Appraisal: The employees performance is appraised by everyone with whom he or she interacts, including managers, peers, customers and members of other departments. This

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is the most comprehensive and expensive way to measure performance, and it is generally reserved for key employees. 16. MBO (Management by Objectives): The employees achievement of objective goals set in concert with his or her manager is assessed. The MBO process begins with action statements such as, reduce rejected parts to 5 percent. Ongoing monitoring and review of objectives keeps the employee focused on achieving goals. At the annual review, progress toward objectives is assessed, and new goals are set. There are as many indicators of performance as there are companies and jobs. The various assessment methods can be used in combinations. It is important to choose indicators that align with your companys goals and assessment methods that effectively appraise those indicators.

Reference:
http://smallbusiness.chron.com/methods-used-companies-monitor-employees-computers-64671.html http://www.williamscollege.co.uk/hnd_business_human_resource_mngt.html Denison, D. R. Corporate Culture and Organizational Effectiveness, New York: Wiley, 1990. Devries, D. L., Morrison, A. M. Shullman, S. L. and Gerlach, M. L., Performance Appraisal on the Line, New York: Wiley-Interscience, 1981. Frost, Carl F., Wakely, John H. and Ruh, Robert A. The Scanlon Plan for Organization and Development: Identity, Participation, and Equity, Michigan State University Press, 1974. Galbraith, J. R. and Nathanson, D. A., Strategy Implementation: The Role of Structure and Process, St. Paul: West, 1978.

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