MANAGEMENT. WHAT IS MANAGEMENT ALL ABOUT ? – 1. 1. The organization Definition : ~ is a system which operates through human activity. Determinative elments of the society, eg.: cash income, entertainment, producing products, services, etc.
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1. The organization
cash income, entertainment, producing products, services, etc.
Macro : cooperation among different organizations
Mezzo : structures of the organizations, and influencing factors
Micro : behaviour of the members of the organizations,motivation, conflicts
2. The management
Planning: is the process of setting objectives and then determining the steps needed to attain them.
The planning process itself consists of five steps : (1) awarness of the opportunity, (2) establishment of the objectives, (3) determination and choice of alternative courses of action, (4) formulation of derivative plans, and (5) budgeting of the plan.
Organizing : is the process of assigning duties to personnel and coordinating employee efforts in order to ensure maximum efficiency.
The manager must consider both structure and people !
Controlling : every organization needs to control both operations and people. The controlling process consists of three steps : (1) establishment of standards, (2) comparison of results against standards, and (3) correction of deviations.
Leadership : is the process of influencing people to direct their efforts toward the achievement of some particular goal. Managers must be knowledgeable about human behavior, the concept of leadership, and communication.
3. The Roles of Managers ( Mintzberg )
2. Organizational Structures
2.1. Line Structure
2.2. Staff Structure
Complete the line structure, the goal is to help the managers in their complex tasks— includes experts on different fields ( eg.: sales, accounting, etc.) without authority.
2.3. Functional-Line Structure
2.4. Divisional Structure
2 faces of Janus : big organization - small organization
2.5. The Matrix Structure
2.6. The Mechanical Structure
Accommodates to the stabil environment
2.7. The Organical Structure
Accommodates to the dynamic environment
2.8. Patological Structure
Organizations which are not able to became organical, because of the regulations of the mechanical structure.
( New type of tasks )
3. Organizational Cultures
3.1. William Ouchi ”Z” theory
How American business can meet the Japenese challenge ? How could a Japenese company function in the US, and in Japan ?
OrientationSTRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
2 dimensions : Margin of movements ( level of flexibility / controlling ), Orientation ( whether the organizations focus on inside or outside of the company )
3.5. Schein : organizational cultures according to professions
Conflicts : operators-engineers
3.6. Hofstede : cultural differences
Unsatisfied needs Goal directed behavior Need satisfaction
1. Rational behavior : always blame it on others
2. Regration : always give up trying
3. Complex : always behave the same way, and never reach anything
4. Resignation : always escape from reality, looses faith in life
2. The content theories of motivation
2.1. Maslow’s need theory : holds that an individual strives for need satisfaction at a particular level. When needs at one level basically satisfied, they no longer serve as motivators, and the individual moves on to the next level of hierarchy.
2.2. Alderfer’s need theory
E- Existence needs -1: are related to survival and safety
R- Relatedness needs – 2: stress interpersonal and social relationships
G- Growth needs – 3: are related to the individual’s desire for personal development
2.3. Herzberg’s two-factor theory
When do people feel exceptionally good or bad about their job. What kind of factors link to satisfaction or dissatisfaction ?
The work itself,
The possibility of personal growth,
Company policies, and administrations
2.4. McClelland : achievement motivation theory : based on ”learned” needs
1. Affiliation Need: friendship, love, cooperation
2. Achievement Need: success, new challange
3. Need of Power: prestige, the desire to influence people
2.5. Hunt : individual goals : the person own goals direct his/her behavior at the workplace.
Welfare, Comfort, Cooperation, Relationships, Power, Respect, Creativity
3. The process theories of motivation
3.1. Skinner – Reinforcement theory
considers the use of positive or negative reinforces to motivate or create an environment of motivation.
Positive : rewarding someone for certain achievements
Negative : stops those consequences which the subordinates don’t like ( disciplines ).
3.2. Theory of Objectives-Management by Objectives ( MbO )
What are the goals and thoughts of the subordinates ?
This method typically involves the establishment of objectives to be accomplished by the subordinate.
3.3. Vroom’s Expectancy Theory
Individuals will exert work effort to achieve performance which will result in preferred rewards. The management FOCUS that follows is about rewarding workers in such a way that increased effort occurs.
Individual effort to perform (tools, resources, skills): results in Level of performance (this effort will lead to reward): results in Outcomes (Instrinsic reward : eg.: recognition, or Extrinsic reward: eg.: job security )
The process of influencing people to direct their efforts toward the attainment of some particular goal or goals.
2. Personal –Behavioral Theories
2.1. Kurt Lewin - 3 styles of leadership :
1. Autocratic: makes all the decisions, has the authorty, creates strict rules
2. Democratic: let the subordinates participating in the decision makin process, feedback- Lewin preferred this style
3. Laissez Faire : leave the organization alone, doesn’t play the leader role
2.2. Liker : leadership styles according to the level of subordinate’s participations
1. Exploit-commanding : manager makes decision, and announces it
2. Kindly-commanding : the communication channels working on both way, but in a paternalistic way; still the manager makes the decision, but listen to the subordinates
3. Consultative : manager presents problems, gets suggestion, makes the decisions
4. Particiating groups : manager and subordinates make the decision together
2.3. Tannenbaum – Schmidt
Boss centered leadership
Subordinates centered leadership
1 2 3 4 5 6 7
2.4. Blake – Mouton : managerial grid theory
Leadership style can be plotted on a two dimensional grid
Concern for people
Middle of the road
Concern for high production
Task ( hajcsár ): the leader concentrates on task efficiency, but shows little regard for the development and morale of the subordinates
Impoverished: low concern for people and production
Country Club: the leader concentrates only on subordinates, but not on task efficiency
Middle of the Road (Szervezeti ember ): adequate task efficiency and satisfactory morale are the goals of this style
Team: high concern for people and production at the same time
3. Contingency theories-Situational theories
3.1. Vroom-Yetton modell
Their theory attempts to identify the appropriate leadership style for a given set of circumstances, or situations. Five leadership styles are suggested by them:
Autocrative I. (AI): the leader makes the decision alone
Autocrative II. (AII): the leader obtains information from followers, then decides on the solution to the problem
Consultative I. ( CI): The leader shares the problem with subordinates individually, and makes the decision with or without the opinion of subordinates
Consultative II. ( CII): The leader shares problems with subordinates as a group, and makes the decision with or without the opinion of subordinates
Group decision ( GII ): The leader and the group solve the problems together
3.2. Fiedler theory of leadership
Fiedler has developed a dynamic situational theory of leadership. Four important situational dimensions are assumed to influence the leader effectiveness:
The leader: experience, thought, value, confidence in subordinates, conflict and stress handling, relationship
The subordinate: needs, the level of knowledge, motivation at certain problems, tolerance toward uncertainty
The task : complexity, routine or non routine, time factor, risk
The organization : structure, traditions and habbits, environment ( inside )
3.3. Hersey – Blanchard: situational leadership modell
There are 4 leadership styles:
S1: Telling: high task, low relationship – the leader controlls and makes the decision
S2: Selling: high task, high relationship – the leader controlls and makes the decision – the leader leads, but listen to the subordinates
S3: Participating: low task, high relationship– the leader communicates with the subordinates, but leading and controlling are not important
S4: Delegating: low task, low relationship – tasks are done by the subordinates
The maturity level of the subordinates:
R1: Unable, and not willing
R2: Unable, but willing
R3: Able, but not willing
R4: Able, and willing
Unable, and not wiling
Able, and willing
Unable, but willing
Able, but not willing
The Combinations of leadership styles and the maturity level of the subordinates out of Rx-Sx:
The changes of the environment are so accelerated that even the weak signals (homályos jelek ) are received too late for the traditional responses.These circumstances triggered to existence the surprise management. The surprise can’t be forecasted by strong- ( világos ) or weak signals; and a false respond can result in a lots of losses, and the lost of the opportunity.
2. How will the organization get ready for the fast respond?
3.How can we adapt the changing circumstances into the process of decision making?
viability ( életképesség)
Seeking for habitat
(Keresés élettér )
1.1. The well-structured task:
1.2. The bad-structured task:
2. What kind of effect does the confidence has on the values of the organization?
Reference (Vonatkoztatási) system
In a Changing environment
This area gives the value
3. Who are regarded as stakeholders?
0%1-99% 100 %
Information about the environment
Security = when we know about everything = we have all the information ( 100% ) about the environment We choose the optimal solution (eg.:2 alternatives)
Play tennis 10
Grab a beer with a friend 6
Probability level 40% 60% Expected value
Possible alterations Rainy w. Sunny w.
Tennis -1 (output) 10 (output) (-1*0.4)+(10*0.6)=5.6
Beer with a friend 6 (output) 6 (output) (6 *0.4)+(6*0.6)= 6
So, what can we do?
We can try to guess ”If…….then” rules
But there is a lot to lose!!!
Rainy w. Sunny w.
Tennis -1 10
Beer with my friend 6 6
So, how should we make a decision?
2. The optimist, the pessimist and the minimum regret principals
Everyone thinks in a different way:
Rainy w. Sunny w.
Tennis -1 10
Beer with my friend 6 6
3. The meta decision: it is about the decision how to make a decision
Decision making methods: optimist, pessimist, minimum regret level
Meta decision making: HIGHER Level!!! : Eg. The pessimist will be optimist as of tomorrow He/she changes a part of his/her personality!
It can’t be put in words,
but can be experienced
szavakba önthetetlen és
It can be put in words,
tanulhatóWhen and which type of knowledge is required to make the right decision? - 8.
What is the knowledge all about?
2. How does the decision maker use the facts?
3. How does the decision maker use his/her skills?
Symbols, pictures-szimbólumok és képek
megtanult szabályok- learned rules
Instinctive action-ösztönös cselekvés
Implicit knowledge: it can not be put in words. „ If….then” rules
Explicit knowledge : It can be put in words
2. Routine decision: explicit knowledge- learned rules. Eg.: buying flower for someone’s birthday, writing a contract, buying a car which satisfies our criterias, production according to the technological description
3. Original decision: new situation - the decision maker has to find the new solution- implicit knowledge – symbols and pictures. Eg.: R&D, divorce
- Making a routine decision, as an original one
- Focus on simple solutions without understanding the rules of routine
The organization is slow, if each dilemma is handled as unique, and the organization can not react in time if each dilemma is handled from routine
2. Why can’t the original decisions be programmed?
3. How subordinates relate to being delegated?
Original decision leader (he is thecoordinator )
Routine decision manager (he is theexpert)
Reflex decision executor
The leader delegates the routine decisions to the manager
2. Time – we don’t have enough time to learn our expectations
3. Cognizability (megismerhetőség): eg.: the best husband/wife – do we have time to get to know all of the characteristics ?
2. The bounded rationality – adequate solution
rosszWhat makes a difference between the search for the adequate-, and the search for the best solution ? – 10.
3. How could we characterize the search in the real world ? Intuitive rationality – unimpeachable ( kifogástalan) solution
Ethic-scale of values
rosszHow will intuition affect the decision making process?-11.
1. Intuitive rationality ( 10. )
Eg.: buying a pair of shoes
Black, high heel, leather
In the shop we saw red
2. Which heuristics appear in the decision making?
3. What does the decision maker perceive during browsing ?
The gaps of perception:
The leader = conductor of an orchestra, creates global concepts and hands them out to the managers to transform into well-structured tasks
2. The elements of the decision maker’s thinking :
3. How does the decision maker organize his/her notions?
The quality of patterns
Who sees what
The used language
2. Whose knowledge can be modelled?
3. What makes a master?
DynamicalWhat are the problems of the problem solver with securing acceptance of the novum?-14
2. How will be the novum accepted?
(The decision makers are very sensitive for the soft signs)
3. How will the Problem Solver influence the Decision Maker?
- we want something valuable,
- dynamic value: discovering new materials, working out new methods
- static value: interpretation of the results
Sometimes you have to accept standards, but that doesn’t mean that standards can be applied in every situation
There is always something good in everything, which emerging suddenly without you being able to forecast or repeat it
2. Profit-oriented company: accepts static values- (provincial) successful companies
3. Value - oriented company: accepts dynamic values: civilized companies
InteriorisateAlong which way does the problem solver think?-16.
2. How can you comprehend the weird idea - Lateral thinking
3. How does the explanation work?
Common features of these factors:
Special features of M2:
2.a. Definition : Human resource management is the function performed in organizations that facilitate the most effective use of people (employees) to achieve organizational and individual goals.
2.b. A brief history of HRM
Although no particular ideology can be attributed to a complete group of people at any given time, it is possible to show an outline development of the personnel function by suggesting a general self-image obtained at different periods.
Free enterprise, the survival of the fittest and the ruthless exploitation of the masses were seen as laws of nature, and it was the social reformers such as Lord Shaftesbury and Robert Owen who produced some mitigation of this hardship, mainly by standing outside the organisation and the workplace, offering criticism of employer behaviour within and inducing some changes.
whose central idea was to emphasise informal social relationships and employee moral as contributors to organisational efficiency.
The personnel manager acquired bargaining expertise to deploy in search of a lost consensus.
The development was most clearly seen in the late 1960s and is most significant because it marks a change of focus among personnel specialists, away from dealing with the rank-and-file employee on behalf of the management towards dealing with the management and integration of managerial activity. Its most recent manifestation has been in programmes of organisation and management development, as companies have sub-contracted much of their routine work to peripheral employees, and concentrated on developing and retaining an elite core of people with specialist expertise on whom the business depends for its future.
The activity was boosted by the advent of the computer, which makes a range of calculations and measurements possible which were unrealistic earlier.
3. The Diagnostic Model for HRM
This model in HRM is a framework that can be used to help managers focus on a set of relevant factors. There are 3 main factors included in the model: people; the internal and external environment; and the organisation itself.
External Environmental forces
Economic Conditions - Composition of the labor force - Government requirements and regulations - The union
External Environmental influences
Economic Conditions The labor market Government requirements and regulations The union
External Environmental forces
Economic Conditions Composition of the labor force Government requirements and regulations The union
Human Resource Management Program
HRM Activities People Results
Job analysis - Abilities Staff
Recruitment and selection - Motivations Performance
Career planning and development keep the
Benefits and services Scope of activities employee Attendance
Discipline - Requirements Satisfaction
Labor relations - Compensation Others
Internal Environmental influences
Organizational procedures Rules of organization Strategy Work group
There are other factors which could be important for the organization, such as: safety and health, stress handling, etc.
By studying the diagnostic model you should see that in order to work effectively, a number of HRM activities must be efficiently practiced. E.g.: to encourage individuals to use their abilities: it may not be sufficient to only have a properly analyzed job. A sound performance evaluation, equitable benefits and services, and an attractive work schedule may also be needed.
HRM activities are all related to each other and have a combined effect on people. The objectives of the HRM functions must be accomplished in order for the organization to remain competitive and to survive in the environment.
Some differences between employee performance affecting HRM programs are due to the differences in abilities (mechanical, motor coordination, mental or creative skills) and motivation toward work and the place of work (working hard, being on time). Generally it is said that the performance of an organization is brought about by the abilities and motivation of the employees.
Each position has general requirements eg.: level of education, and special requirements like experience on a special field. Requirements need to be rewarded with competitive salary and other benefits, that motivate the employee.
-Planning: Two steps: 1. To make a forecast, based on the company’s business strategy needs, about the quantity and quality of the human resources 2. After the environmental forecast, define the right tasks
-Job analysis: The process of defining a job in terms of tasks or behaviors and specifying the education, training, and responsibilities needed to perform the task successfully
-Recruitment and selection: The goal is to find the right person for the right task.
Sources of recruits: two sources of applicants can be used: internal ( present employees), and external (those not presently affiliated with the organization). External recruitment methods: tests, interviews.
-Performance evaluation is a system set up by the organization to regulary and systematically evaluate employee performance.
(centralized, decentralized) coordination of the human resources and the scope of activities
- External environmental influences: involve characteristics and factors that are found external to the organization.
( good economical conditions more benefits for the employees, poor economical conditions no benefits for the employees)
Mission: What is the organization for? Where is it going? It is general and visionary.
Strategy: The overriding mission is then continuously implemented by developing a programme of initiatives to define and achieve the organization’s objectives
Policy: The overall mission and strategy are guided by a series of policies to channel decision and action, shaping the organization and providing the direction that is needed
Procedures: procedures are more familiar to personnel managers than to most management specialists as they form the substance of much employee relations activity, but in our action framework they have the more general meaning of being the drills that implement the policy, so that a policy decision to advertise all vacancies within the organization before external advertising begins is implemented by a procedure to specify who does what, in what order, when and with what authorisation, or other trigger to action
Planning: Strategy, policy and procedures can all be co-ordinated and moved into action by planning. Not only does each stage benefit from planning, but a planning approach can ensure that all three are thought through and put into operation together
Practice: The final element is what actually happens. No organization has a procedure for everything, and no procedure is so comprehensive as to rule out the need for interpretation and judgement.
Practice is a mixture of implemented procedures , ad hoc decisions, reaction to policy and the ebb and flow of interaction between the organization and its environment. The effectiveness of a policy can only be determined by the practice that ensues.
1. Putting together the goals of human resource strategy ( quantity-quality needs)
2. Working out the action plans
3. Defining the activities (replacement, career planning, trainings) which are needed for the chosen strategy, and the way of the controlling methods
2. Reducing dependence on individuals
3. Producing consistent management behaviour
4. Knowing where we stand
5. Responding to legal and other external pressure
As a policy is as good as the practice it produces!
To develop human strategy the methods of business strategy is used. Eg.: brainstorming, patterning, SWOT, STEP analyses
The content of the strategical human resource planning
Strategic management decisions Strategic HR decisions HR planning
2. a. Types of staff number requirements
If adequate or shortage If surplus
Total staff number requirement
- Shortage: overtime, recruitment
2.b Influencing factors
1. Task Identification: the complexity of the job structure; type of service or product; scheduling of the tasks, contribution proportions.
2. Work process: the level of the practice (routine), cooperation with other systems
3. Technology: machines, tools
4. The person: qualification, performance of the coworkers, job specification
5. The environment: company’s targets, rules, development tendencies, worktime
3. Employment forecasting techniques
1.a. Analytic requirements determination
- Index number technique: we match the volume of the tasks to the time needed for execution (objective)
- Workplace technique: it is not dependant of the volume of the tasks; set plan for scope of activities
1.b. Summing requirements determination
- Plan for scope of activities: civil service area: set plan for scope of activities for different periods of time
2. Stochastical techniques: based on a mathematical procedure in which predictions of the dependent variables are made through knowledge factors known as independent variables. Results must always be completed by forecasts! Types: - Regression analysis,- Correlation analysis, - Exponential finishing
Problems: past staff number records are often incorrectly regarded as number requirement dataChanges in production are often mistaken for changes in work volumeThe method requires too many figures from the past years
3. Econometrical technique: we examine statistic figures from the economy to be able to forecast the development in the future (use of computers). This technique is suitable to make medium and long term forecasts.
4. Simulation techniques : we model different kinds of systems with a set of different variables. (e.g.: standing in line)
5. Estimate techniques
5.a. Simple estimate technique: the area manager will forecast the employment needs based on his/her decision, the result is based on the manager’s judgement (subjective),
5.b. Expert-estimate technique: an ”expert” will forecast the employment needs primarily based on his/her decision, or expert group!
-Delphi techniques: intensive questioning of each expert, through a series of questionnaires to obtain data that can be used to make a reliable forecast
6. Creating new jobs: if the volume of the task, and the certain time frame are not preciesly outlined
6.a. Task analysis
- make a list of tasks
- structure the tasks
6.b. Task synthesis
- arrange the tasks according to quantity and quality
Define the scope of activities for executives and managers
6.c. Jobs independent of staff number
- In cases none of the above is applicable: a) the number of employees are determined by business policy rather than actual need; b) only one person is needed
Lewis (1985) suggests that selection criteria can be understood based on the following 3 aspects:
3. Individual job criteria: contained in job descriptions and person specifications are derived from the process of job analysis
2. Choosing selection methods: Testing
Selection methods: application forms, resumé, references, tests, interviews
Reliability of a test is the degree to which the test measures consistently whatever it is intended to measure
Use and interpretation: tests need to be used and interpreted by trained or qualified testers.
Context of test: test scores need to be evaluated in the context of other information about individuals
1. Aptitude tests: these are tests that measure specific abilities or aptitudes, such as spatial abilities, perceptual abilities, verbal ability, numerical ability, motor ability ( manual dexterity), and so on. There is some debate over the way that general intelligence and special abilities are related
1.a. Special aptitude tests measure an individual’s potential, attainment or achievement, tests measureskills that have been already required
2. Intelligence tests: sometimes called mental ability tests, are designed to give an indication of overall mental capacity. A variety of questions are included in such tests, including vocabulary, analogies, similarities, opposites, arithmetic, number extension and general information.
3. On the job test: consist of the applicants doing a practical task, or mechanical test, or simulation
4. Personality tests: the least reliable of the employment tests are those instruments that attempt to measure a person’s personality or temperament. The tests based on the person’s honesty and reliability. Psychiatrists needed for the tests! The problem with the use of personality tests is that they rely on an individual’s willingness to be honest, as socially acceptable answer or the one best in terms of the job are often easy to pick out.
3. The interview
1. Frank and friendly strategy: here the interviewer is concerned to establish and maintain the rapport. This is done partly in the belief that if interviewees do not feel threatened, and are relaxed, they will be more forthcoming in the information that they offer. The potential advantage that the interviewees will leave with a favourable impression of the company.
2. Problem-solving strategy: a variation of the frank and friendly strategy is the problem-solving approach. It is the method of presenting the candidate with a hypothetical problem and evaluating his or her answer. These are sometimes called situational interviews. The questionsa asked are derived from the job description and candidates are required to imagine themselves as the job holder and describe what they would do in a variety of hypothetical situations. This method is most applicable to testing elementary knowledge.
3. Stress strategy: in the stress approach the interviewer become aggressive, disparages the candidates, puts them on the defensive or disconcerts them by strange behaviour. The idea was used by some business organizations on the premise that executive life was so stressful, so a simulation of the stress would determine whether or not the candidate could cope. The advantage of the method is that it may demonstrate a necessary strength or a disqualifying weakness that would not be apparent through other methods.
The disadvantages are that evaluating the behaviour under stress is problematical, and those who are not selected will think badly of the employer.
The decision about the number of the interviewers are based on the traditions, and the chosen strategy.
1. The individual interview: gives the greatest chance of establishing rapport, developing mutual trust and the most efficient deployment of time in the face-to-face encounter, as each participant has to compete with only one other speaker. The disadvantages lie in the dependence the organization places on the judgement of one of its representatives, and the ritual element is largely missing. The individual interview is very popular in the selection of blue-collar staff.
2. Group interview: two or more interviewers.
a. Two interviewers are still able to establish a friendly atmosphere, but if there are more than two:
b. Panel interview : this method has the specious appeal of sharing judgement and may appear to be a way of saving time in interviewing as all panel members are operating at once. They are not having a conversation with the candidates, they are sitting in judgement upon them and assessing the evidence they are able to present in response to their requests
1. Preparation: we assume that the preliminaries of job analysis, recruitment and shortlisting are complete and the interview is now to take place. The first step in preparation is for the interviewers to brief themselves. They will collect and study a job description or similar details of the post to be filled, a personal specification or statement of required competencies and the application forms or CV of the candidates. If there are several people to be interviewed the interview timetable needs greater planning than it usually receives.
2. Interview structure
Stage Objectives Activities
Opening To put the candidate at Greet candidate by name
easy, develop rapport Introduce yourself
and set the scene Explain interview purpose
Outline how purpose will be achieved
Obtain candidate assent to outline
Middle To collect & provide information Asking questions within the
structure that makes sense to
the candidate, such as biographical, areas of the application form, or competencies identified for the job; Listening
Closing To close the interview and Summerize interview, Check confirm future action candidate has no more questions
Indicate what happen next and when
- Development purposes: it can determine which employees need more training
- Reward purposes: it helps the organization decide who should receive a raise and promotion
- Motivational purposes : the presence of an evaluation program has a motivational effect: it encourages initiatives, develops a sense of responsibility, and stimulates effort to perform better
- Legal compliance: it serves as a legally defensible reason for making promotion, transfer, reward, and discharge decision
- Personnel and employment planning purposes: it serves as a valuable input to skills inventories and personnel planning
- Compensation: it provides information that can be used to determine what to pay and what will serve as an equitable monetary package
- Communications purposes: evaluation is a basis for an ongoing discussion between superior and subordinate about job related matters. Through interaction, the parties get to know each other better
- HRM research purposes: it can be used to validate selection tools, such as a test program
There are further purposes, such as:
- According to Fletcher & Williams:
1. Evaluation of employees’ work
2. Evaluation of production in order to advance improvement
1. Salary and wage adjustments
2. Promotion consideration
3. Improvement of performances
Personality Behaviour/Performance Achievement of goals
Knowledge of the job Accomplishment Turnover
Physical force Following orders Output
Eyes-hand coordination Reporting problems Product quality
Qualifications Maintanance Waste
Business knowledge To make notes Accidents
Ambition Keep the rules Repairs
Social skills Work attendance Served customers
Reliability Submitting proposals Number of satisfied
Loyality Non smoking customers
2. a. Who contributes to the appraisal process?
3. Member of the HR department: this happens when there is no logical ongoing immediate manager.
4. Self-appraisal: there is a little doubt that people are capable of rating themselves. When employees were asked to compare themselves with others they tended to overrate themselves; however, when individuals prepared self-appraisals for appraisal interviews they were more modest
5.a. Appraisal by subordinates: is a less usual approach. It is more limited in its value, as subordinates are only acquainted with certain aspects of their manager’s work
5.b. Appraisal by peers: peer ratings are both acceptably reliable and valid and have the advantage that peers have a more comprehensive view of the appraisee’s job performance. They note the problem, though, that peers may be unwilling to appraise each other as can be seen as ”grassing” on each other.
6. Assessment centers: can be used in the appraisal of potential supervisors and managers. The advantage of assessment centers for this purpose is that ratings of potential can be assessed on the basis of factors other than current performance. Tests, group exercises and interviews are used
2.b. The methods
Appraisal systems can measure a variety of things. They are sometimes designed to measure personality, sometimes behaviour or performance, and sometimes achievement of goals. These areas may be measured either qualitatively or quantitively.
1. Qualitative appraisal: often involves the writing of an ustructured narrative on the general performance of the appraisee.The problem is that they may leave important areas unappraised, and that they are not suitable for comperison purposes
2. Quantitative appraisal: when they are measured quantitively some form of scale is used, often comprising five categories of measurement from ‘excellent’, or ‘always exceeds requirements’ at one end to ‘inadequate’ at the other; with the mid-point beeing seen as acceptable.
3. Avoidance of personality measures: much traditional appraisal was based on measures of personality traits that were felt to be important to the job. These included traits such as enthusiasm, drive, application and other traits such as intelligence. One difficulty
with these is that everyone defines them differently, and that traits that are used are not always mutually exclusive. Rates,therefore, are often unsure of what they are rating.
4. a. Behaviourally Anchored Rating Scales (BARS). The BARS approach relies on the use of critical incidents to serve as anchor statements on a scale. A BARS usually contains the following features: 1. Six to 10 performance dimensions are identified and defined by raters and ratees 2. The dimensions are anchored with + and – critical incidents
3. Each ratee is then rated on the dimensions 4. Ratings are fed back using the terms displayed on the form
4.b. Behavioural Observation Scales (BOS): uses critical incident technique to identify a series of behaviours that cover the domain of the job.
5. Meeting objectives: is to use to set job objectives for the coming year and, a year later to measure the extent to which these objectives have been met.
6. Development of appraisal criteria: this is include the use of the critical incident techniques to identify particulary difficult problems at work, content analysis of working documents and performance questionnaires whereby managers and potential appraisees identify ( anonymously) what characterises the most effective job holder and the least effective job holder.
7. Evaluation based on job analysisThe comparison of the actual performance and the initial job requirements. Used in small companies with no need/possibility of complex evaluation procedures.
1. Purpose and rapport: agree purpose with appraisee, agree structure for meeting, check that pre-work is done
2. Factual Review: review of known facts about performance in previous period. Appraiser reinforcement
3. Apraisee views: appraisee asked to comment on performance over the last year. What has gone well and what has gone less wee; what could be improved; what they liked; what they disliked; possible new objectives
4. Appraiser views: appraiser adds own perspective, asks questions and disagrees, as appropriate, with what appraisee has said
5. Problem-solving: discussion of any differences and how they can be resolved
6. Objective setting: agreeing what action should be taken, and by whom
1. Tell and sell:
-role of interviewer: Judge
- objective: to communicate evaluation, and to persuade employee to improve
- assumptions: employee desires to correct weaknesses if he knows them
2. Tell and listen
-role of interviewer: Judge
- objective: to communicate evaluation, and to release defensive feelings
- assumptions: people will change if defensive feelings are removed
3. Problem solving
-role of interviewer: Helper
- objective: to stimulate growth and development in employee
- assumptions: discussing job problems leads to improved performance
3. Key to a successful evaluation system
1. Clear objectives: what are the goals of the evaluation? The employees have to have a clear picture about the goals!
2. Commitment of the management: management should participate! Evaluation forms should remain at the departments!
3. Openess, participation: the system should be open to providing more information about the employee him/herself, so the employee can accept these decisions easier.
4.Acceptance of the evaluation criteria: the involvement of both analysts and testees in the identification of evaluation criteria
5. Training: analysts need training in how to evaluate and how to conduct evaluation interviews
6. Administrative effectiveness: form filling should be kept at a minimum!
7. Follow-up: work plans that are agreed by analyst and testee need to be monitored
8. Culture & Flexibility: the system should go along with the organizational culture