Wednesday, December 14, 2011

The Right Person for the Job

Identifying the people who are more likely to succeed at a given job is a well-proven science with a 100-year heritage. The key is to hire based on what the job requires. While this seems obvious, organizations often struggle to clearly and objectively define job requirements, or they may have difficulty translating broad role expectations - "provide excellent service to new and existing customers" - from a job description into behaviors that can be measured in the hiring process. Designing effective hiring processes starts with a formal, objective accounting of job requirements, elicited from a representative sample of subject-matter experts who know the job requirements well, such as high-performing incumbents, managers or trainers.

Job analysis can be relatively quick and painless, such as an online survey of a representative sample of job experts, incumbents or managers, for example, when studying jobs that are common across organizations, well-understood from previous research, and that don't change much over time. Front-line manager or customer service assistant could fall into this category, as these jobs often involve similar elements such as coaching and supervising a team, and being friendly and service-oriented, respectively.

The job analysis process also can be detailed, involving onsite job shadowing by analysts, detailed focus groups and interviews, which makes more sense for unique jobs, new or changing roles, or situations where involving stakeholders to this degree makes the effort worthwhile, such as union environments or large-scale change management initiatives. Job analysis is also flexible enough to consider what the job requires today and what will be required in the future, if this is an important hiring consideration.

In general, the resulting job requirements generally fall into three categories:

1. Readiness:
What people need to be able to do on day one to be minimally successful.

2. Potential:
What the performance requirements are for acceptable and exceptional performance.

3. Fit:

What the working conditions are and what it is like to work there.

Once the job is understood, the recipe for designing a scientific hiring system is simple:

1. Identify the people requirements - what attributes make people succeed or fail in the role.

2. Determine which requirements the organization intends to select for versus those it will seek to develop in new hires via on-boarding and on-the-job training.

3. Build a formal assessment program to measure potential talent.

4. Assess who shows up and try to hire the best.

This can be easier said than done. Identifying people requirements is difficult; scientists have been studying this for a century and are still developing the answers. Moving from job tasks and accountabilities and company culture to tests and interviews that provide good predictive information, requires a deep understanding of previous research on job performance prediction, methodologies to reliably develop new instruments and exercises that perform as expected, and a careful, objective approach throughout to question assumptions and ensure quality. In short, to determine what exactly should be measured in candidates, organizations need the science of talent measurement. But one need not be a scientist to make some sense of a market saturated with various employment tests, traits, models and labels - just remember P = M x Q.

Motivation Multiplied by Qualification

A common belief is performance is determined by motivation multiplied by ability, or P = M x A. This formula is useful to help talent managers remember that success depends on people being able to do and wanting to do a job. However, the "ability" label could give the mistaken impression that being smart and sufficiently motivated is all that is needed to succeed at work. It's not.

Research across several decades makes it clear that other competencies beyond problem-solving and learning ability also predict success in most jobs, including personality traits such as conscientiousness, agreeableness and extroversion. Interpersonal skills, managing oneself toward goals, following rules and procedures, demonstrating creativity and a host of other soft skills or competencies are useful - often essential - for success at work. As jobs increase in complexity, a more holistic view of what ability means is needed to fit the evidence.

What about experience, the favorite of recruiters and hiring managers alike? Beyond competencies and ability, there is clear evidence that experience matters, just not the way it is usually measured. Science doesn't measure experience simply as time in a job or years in the industry. Although these widely used measures are easy to collect and straightforward to review and confirm, they don't predict job performance. Rather, experience is best measured as the result of these efforts - specifically one's knowledge, skills and judgment.

It is hard to imagine an accountant, software developer or industrial-organizational psychologist could be successful in his or her job without acquiring the requisite technical knowledge of these respective professions along with the skill and judgment to apply that knowledge effectively. By defining experience as the resulting knowledge, skills and judgment, employers now can accurately measure these accomplishments using standardized tests or performance exercises.

Interestingly, while one's cognitive ability does predict learning speed, time on task and focused practice seem to predict expertise in a given domain. Like the fable of the tortoise and the hare, although somebody smart is likely to pick up concepts more quickly, people who persist, learn from failure and adapt, and keep working to develop their skills over thousands of hours ultimately become experts.

Qualification may be more useful for the formula alongside motivation, referring to the combined set of abilities, competencies, knowledge, skills and judgment that a person brings to the job. So instead of P = M x A, more accurate is P = M x Q. Qualification also implies that these are not generic attributes applicable in every setting. Qualification is talent as viewed through the lens of a job role or set of performance requirements. It is oriented to improve talent decisions and organizational performance.



Factories Act,1948

1 Register of Adults workers
2 Register of Leave with wages
3 Accident register with Forms
4 Muster Roll and wages Register
5 Inspection Book
6 Register of Compensatory Holidays
and Over Time
7 Muster Roll for Exempted Workers

Contract Labour (R & A) Act,1970

1 Register in Form XIII

Payment of Wages Act ,1936

1 Register of wages ,fine , deductions
and advances

Minimum Wages Act ,1948

1 Wages Slips
2 ESI Act ,1948
3 Employees' Register of Contibutions
4 Accident Register
5 Inspection Book

Payment of Bonus Act,1965

1 A,B & C Register

Equal Remuneration Act,1976

1 Form D Register

Employees' Provident Funds & M.P.Act

1 Eligibility Register
Inspection book

Combating Office Politics

In overly political companies, individuals who are usually seen as problem-solvers are often marginalized if their initiatives negatively reflect on the "corporate order." It's a high-risk proposition, but it's up to HR leaders to take the lead in combating corporate politics.

In companies that are obsessed with politics and intrigue, individuals seen as problem solvers can rarely fix issues. In fact, problem-solvers are more likely to spawn new problems that weigh heavily on the organization's ability to serve customers and respond to market trends.

This is because most problem-solvers in such organizations avoid thinking about the political dimension of problems. For them, problem solving is apolitical and necessitates issues to be understood and analyzed, root causes identified and validated, and initiatives developed and implemented so that workable solutions eventually result.

Those solutions -- by and large -- are delivered in the form of processes and governance models, roles and responsibilities, training, automation, etc. Problem solving in this manner always conforms to the politics of the company or what I like to call the "corporate order."

No matter how hard problem-solvers try to fix problems, the corporate order always ensures that facets of the solution that they deem threatening to their interests are either lobbied away or sufficiently diluted before the green light is given for implementation.

Even the implementation of the solution is not secure from the prying eyes and ears of the corporate order. If they discover red flags that can expose their incompetence or heap embarrassment upon them, project and operational reports are skillfully manipulated to steer initiatives into paralysis or the initiative is given a death blow.

In such environments problem-fixers -- executives, program directors, project managers, line managers, etc. -- quickly learn to mold their thinking to accommodate the interests of the corporate order, even if it is detrimental to the corporate interests.

Subsequently, problem-fixers spend huge amounts of intellectual capital, invest considerable budgets and exert much effort in producing and delivering solutions that are fundamentally flawed both in scope and application.

From the outset, the purpose of such solutions is to maintain the status quo, i.e., to keep the executives that preside over the corporate order in power. Problem-fixers are only permitted to solve those problems that enable the custodians of the corporate order to meet their performance targets and maintain good relations with the board.

Problem-solvers who adhere to the purity of their thinking and are sincere to the corporate interests find it extremely difficult to conceal their frustrations in such working environments. They often clash with the interests of the corporate order -- many do so with a poor understanding of the political situation.

In the end -- depending upon the level of seniority and political influence -- they are either browbeaten into submission, contained but isolated, or their employment is terminated. This usually happens after a lengthy war of attrition -- often disguised in business jargon, so that unaware employees do not become suspicious and can be used as pawns in the ensuing power play -- and the company's resources, money and time are wasted in such pursuits.

Those problem-fixers who survive the onslaught are intellectually scarred and find it difficult to even attempt to solve future problems. They procrastinate, fearful that their solutions will be rejected by other employees who work under the shadow of the corporate order.

Such problem-fixers very quickly lose credibility and relegate themselves to problems they cannot solve.

If problem-solvers truly want to solve problems in politically charged companies, then they must seek the assistance of HR executives to take the lead in countering the corporate order. However, HR executives must go beyond the traditional techniques and models available to them before they engage in such an endeavor. To do so, they must excel in three areas.

First, develop a firm understanding of the corporate order and its political influence on the entire company.

Second, learn to think politically and not intellectually.

Unlike intellectual thinking, political thinking has no rules. Its source is the statements and deeds of those who engage in politics as work. Techniques such as generalization, modeling and analogies rarely work to uncover or counter the motives and plans of the corporate order.

Conversely, the corporate order is apt at exploiting such techniques to imprison those who challenge them in their thinking, thereby rendering them impotent.

Hence, it is incumbent upon HR executives to build a profound understanding of all the major players at work, their domains of influence and how they maneuver politically to safeguard their interests. In sum, HR executives, in close collaboration with problem-solvers, need to possess a crystal-clear picture about the political plans and actions of those who maintain the corporate order.

Third, for HR executives to be successful, they must have the courage to challenge the existing corporate order on behalf of the problem-solvers.

Challenge here should not be confused with mere confrontation with the guardians of the corporate order that ultimately yields a compromise -- this will never lead to proper change.

At best, the problem-solver's concerns will be accommodated by the corporate order, but at the mercy of their terms and conditions. Moreover, the problem-solver will be regarded by other employees as a lapdog of those executives under whose control the corporate order thrives.

To produce effective change, HR executives, together with problem-solvers, must expand the support base to include other executives willing to spearhead the cause, and then challenge the corporate order until it is reformed or reconstructed.

This is a high-risk strategy -- failure will certainly be a career-ending move for the problem-solver or even the HR executive championing the cause, but success will usher in an era of genuine problem-solving, propel the company to new heights and cement the position of the HR executive as an indispensable leader.

The Manager's Role in Performance

When managers consistently build one-on-one dialogues with employees, there are often measurable improvements in productivity, quality and personnel dynamics. Yet most leaders, managers and supervisors fail to regularly provide the guidance and direction necessary to support a real performance management process. They don't clarify performance expectations or offer candid feedback on an ongoing basis. As a result, these managers fail to consistently assist project and resource planning, track performance, correct failure and reward success.

To strengthen the day-to-day working relationships between managers and their direct reports, the Henry M. Jackson Foundation for the Advancement of Military Medicine (HJF) conducted extensive training. The centerpiece of the approach was to get managers at all levels into the habit of conducting one-on-one conversations with their direct reports every day, every week or every other week to spell out performance expectations and review previously set performance expectations, building regular one-on-one performance dialogues into the corporate culture.

"In many cases, the level of regular engagement between managers and their direct reports increased dramatically, and the impact on performance was evident," said Debbie-Jo Zarnick, HJF's director of human resources. "In those cases, we could see error rates decreasing and productivity increasing as a direct result of the regular one-on-one performance dialogues."

Accounting firm Clifton Gunderson LLP (CG) introduced regular one-on-one performance dialogues between partners and senior managers and the associates they manage. At CG, the approach was dubbed HOT - hands-on and transaction - but the approach was similar to that used at HJF. Through training and internal communications strategies, talent managers promoted building more highly engaged supervisory relationships using consistent, structured, one-on-one performance dialogues.

Lauren Malensek, CG's chief human resource officer, has written extensively about the program's success and its impact on profitability and retention. Malensek said the firm's partners became increasingly committed to the approach "because they have seen what it can do for their business results."

The more one-on-ones a manager conducts, the stronger and more informed the manager's judgments will be about what can be done and what cannot, what resources are necessary, what problems may occur, what expectations are reasonable, what goals and deadlines are sufficiently ambitious, and what counts as success versus failure.

These conversations are opportunities to ensure there are no obstacles in the employee's way.

This is also the manager's chance to answer questions, solicit input on additional development needs, provide support and get firsthand information about the employee's experience on the front line.

It is time-consuming for managers to conduct regular, one-on-one performance conversations with direct reports, but it can be far more time-consuming and costly when managers fail to conduct them. Unnecessary problems occur more often, and small problems are more likely to grow more complex. Meanwhile, managers end up doing tasks that could be delegated.

Once a manager gets into a routine of one-on-ones with each employee, conversations don't need to be lengthy. The best practice is to keep them brief and simple. Talk through each employee's work of the day or week in sufficient detail to provide feedback, guidance, support and course correction.

Often 15 or 20 minutes per conversation is all a manager needs. It's a moving target. Over time, managers become more adept at gauging how much time to spend with each employee.

Frustrated managers can copy what the most effective managers do every day:

Step 1:
Get in the habit of holding regular daily or weekly one-on-one meetings with each direct report. Try to spend an hour a day conducting one-on-ones.

Step 2:
In these one-on-ones, practice talking like a coach or a teacher.

Step 3:
Build each unique dialogue with each person based on what's needed to be successful in the role, and what that person needs to improve his or her performance.

Step 4:
Make accountability a process by getting people in the habit of giving regular ongoing accounts of their performance in these one-on-ones.

Step 5:
Spell out expectations in detail every step of the way.

Step 6:
Track performance in writing every step of the way.

Step 7:
Solve small problems before they turn into big problems.

Step 8:
Do more for some people and less for others based on what they need.

Friday, November 25, 2011

To Develop Is to Retain

To Develop Is to Retain

Now that the effects from the deepest recession in 70 years are receding, employers are slowly adding new employees. The problem is they also may be losing some of their best and brightest.

Avoiding turnover completely is unlikely, as it may not be easy to enhance salary or benefits. But chief learning officers can mitigate the exodus by promoting development strategies to retain the workers they can least afford to lose.

According to the U.S. Department of Labor there were 3 million job openings on the last business day of April, a slight decrease from 3.1 million in March. Yet high unemployment rates linger, and many organizations remain cautious about hiring. That hasn't hampered job seekers, however. In a press release detailing why managing talent will be even tougher in 2011, Douglas Matthews, president and chief operating officer for Right Management, a talent management company, said more than 80 percent of workers may now be actively seeking new jobs.

The Cost if They Leave

For many employers a little turnover isn't necessarily bad news. Some executives reason that voluntary turnover is unavoidable and may serve to clear out low performers. That may be true, but the real cost should not be underestimated. Losing talented employees is a bottom-line issue. Considering replacement expenses such as covering each vacant position, plus the cost to recruit, hire, train and orient replacement workers, turnover can cost an organization 50 to 150 percent of an employee's annual salary. "The immediate costs of losing talented employees is significant and can be quantified relatively accurately," said Lisa B. Peters, chief human resources officer of BNY Mellon. "The long-term costs are more difficult to calculate, and they can have serious consequences. The impact of losing top talent at any place in the leadership pipeline may not be felt for years, but such losses truly limit an organization's ability to fill critical roles and, ultimately, compromise a company's competitive position."

The Mechanics of a Development/Retention Strategy

There are several steps learning leaders can take alone and in concert with their HR peers to ensure their organizations retain top performers.

1. Identify the keepers.

To retain talent, figure out which employees are the keepers. All workplaces are composed of top, middle and bottom performers. But cream rises to the top, and organizations can identify that top 10 to 15 percent of the workforce through performance review data and learning management reports. It also pays for CLOs to keep an eye on emerging talent and to create diverse learning activities such as job shadowing and rotation, stretch learning assignments with an internal mentor, and customer or site visits to bolster development of top performers at all levels. Further, don't keep that information secret. It is important to let top employees know they are valued and that the organization supports their development. The goal is to motivate and encourage them.

2. Establish development programs for each level.Leadership development programs - whether internal or external - should target learning needs for all front-line supervisors, middle management and senior-level executives. Robust development plans should include competencies required for each level of development, as well as blended learning programs, on-the-job stretch assignments and sponsorship, and mentoring by senior executives. While building a comprehensive leadership development program is necessary to maintain bench strength, it's also critical to retain the best and brightest. For example, a manager may progress through various management courses at different levels to gain skills for delegating, managing a function and leading an enterprise. Coursework may include foundational e-learning programs, individual and 360 assessments to target developmental goals at each level, workshops to practice skills and peer coaching to reinforce them.

3. Partner with HR to determine the employee engagement baseline.Widespread employee engagement problems can adversely affect even the best performers. CLOs should evaluate if their workplace culture actually fosters employee engagement. One way to find out is to partner with human resources to conduct and analyze results from an organization-wide employee engagement survey. These surveys can identify the degree to which employees connect with, or are fully involved in and enthusiastic about their work, as well as gauge their commitment to the organization and its goals. This also can help identify the value of learning and development for retention as well as target areas where learning may be necessary to bolster skill development.

4. Find ways to stretch employees developmentally.All employees have to deal with some mundane aspects in their work. The danger, particularly with high-performing workers, is that drudgery can take over and demotivate or demoralize. To reduce that risk and take advantage of employees' unique skills, create special projects and temporary assignments for top performers. Beyond alleviating the boredom, these stretch assignments offer a chance for talented employees to acquire new skills and make significant contributions. It's also an opportunity to see how top employees may perform at the next level. For example, a lower-level employee may be assigned an acting or interim role to support a top performer as he/she executes a stretch assignment.

5. Incorporate learning into an organization's employment brand.An organization's employment brand is a key factor in attracting and retaining talented job candidates. The brand is a combination of current employees' feelings about working in the company combined with how potential employees perceive that organization in the marketplace. According to the 2011 Fortune 100 Best Companies to Work For list, the employment brand is a clear, competitive advantage in the labor market. Prospective employees evaluate an organization's brand in light of its recruiting strategies, on-boarding programs, tuition reimbursement and career development opportunities.

Companies that value, promote and market learning should advertise development opportunities and career progression ladders on their websites. New hires should receive an assessment work-up to help them identify strengths, opportunities and development goals. Tie assessments directly to the competencies and success factors high-performers possess. New hires also should be oriented to the details of the organization's learning process - one that carries its own brand name - and the development process they will follow as they progress in their careers.

6. Uncover the organization's vulnerabilities through keeper interviews.These should include questions about engagement and development opportunities such as:

a) What could be changed to make this a better place to work?

b) What keeps you here?

c) What's going well for you?

d) What makes you excited about coming to work here?

e) What would you like to learn or do next?

7. Keep in touch with the keepers.Every organization loses valued employees it would rather retain. However, goodbye doesn't have to be forever. Former keepers can be a valuable resource beyond the exit interview with the help of an alumni network. Thanks to Facebook and LinkedIn, former employees now have a way to stay connected with each other.

Monday, March 7, 2011

Human Capital Cost Formula

Human Capital Cost

This is simply the average pay per regular employee. The formula is:

Pay + Benefits + Contingent Labor Cost/Full Time Equivalents

Human Capital Value Added Formula

Human Capital Value Added

This uses a similar formula to Human Capital ROI but divides by the number of full-time equivalent employees (FTEs). The formula is:

Revenue - Nonhuman Expenses/Full Time Equivalents

Human Capital ROI formula

Human Capital ROI

This measures the return on capital invested in pay and benefits. The formula is:

Revenue - Nonhuman Expenses/Pay and Benefits

Campus Placement form

Campus Placement form Date:

Name of the Company :
Website :
Company Profile :

Job Designation :
Job Description :
Place of Posting :

Degree/Discipline of students Required

B. Tech
M. Tech
M. Sc.
Ph. D.

Pay package Details*
Cost to Co.

* Please provide a detailed breakup of Salary/Perks as an attachment

Accommodation Provided : Yes/No.
Bond or Service Contract : Yes/No
If yes (for how long) : _______________

Preferred dates for Recruitment
________________ (No. of Executives visiting the campus: (_____________)

Shortlist from Resumes : Yes/No
CPI (minimum) : ______________ (e.g.: 6 and above)
Pre Placement Talk : Yes/No, (If yes, equipment required for PPT: OHP /LCD/Laptop)
Aptitude Test : Yes/No Duration (if any) :__________________
Group Discussion : Yes/No
Personal Interview : Yes/No No. of Rounds : __________________
No. of rooms needed for conducting the interviews/Group Discussion : ­­­­­__________________
Will you declare selection result immediately after the campus interview: Yes/No
(If no, when will the results be declared): _________________________________________
Tentative Joining Date : _________________________________________

Signature : __________________
Name : __________________
Designation : __________________

Contact Person : _______________________________________________
Email : _______________________________________________
Contact Address : ­_______________________________________________
Phones : _______________________________________________
Fax : _______________________________________________

Kindly enclose company literature such as Annual Report, House Journal, Product Catalogue etc., for students` references in the placement office

Please ensure that the completed form along with the detailed breakup of salary/perks is sent to the following address at the earliest:

India Email :

How to calculate Attrition rate (Formula of Attrition rate)

How to calculate Attrition rate (Formula of Attrition rate)

(The formula and correct logic behind calculation of Attrition Rate)

((no. Of attritions x 100) / (Actual Employees + New Joined)) /100.


1) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
150 20 25 155

So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

Which clearly shows that 175 – 20 = 155, which is your current headcount and at the same time you can say my attrition is 11.42% that shows you lost 20 employees of 150 and 25 more joined which makes count to 175.

2) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
100 50 0 50

This is the special case where we are considering attritions only keeping into mind that nobody has joined in particular month.

So according to the formula: ((50 x 100) / (100)) / 100

Which comes to 0.5 i.e. 50%

Now as you had 100 previously and now 0 joined so it makes 100 + 0 =100

Now if you calculate 50% of 100 i.e. 100 x 0.5 = 50

Which clearly shows that 100 – 50 = 50, which is your current headcount and at the same time you can say my attrition is 50% that shows you lost 50 employees of 100 and 0 joined which makes count to 50.

3) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
500 200 100 400

So according to the formula: ((200 x 100) / (500 +100)) / 100

Which comes to 0.3333 i.e. 33.33%

Now as you had 500 previously and now 100 joined so it makes 500 + 100 =600

Now if you calculate 33.33% of 600 i.e. 600 x 0.3333 = 200

Which clearly shows that 600 – 200 = 400, which is your current headcount and at the same time you can say my attrition is 33.33% that shows you lost 200 employees of 500 and 100 more joined which makes count to 400.

4) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
8000 5000 500 3500

So according to the formula: ((5000 x 100) / (8000 +500)) / 100

Which comes to 0.5882 i.e. 58.82%

Now as you had 8000 previously and now 500 joined so it makes 8000 + 500 =8500

Now if you calculate 58.82% of 8500 i.e. 8500 x 0.5882 = 5000

Which clearly shows that 8500 – 5000 = 3500, which is your current headcount and at the same time you can say my attrition is 58.82% that shows you lost 5000 employees of 8000 and 500 more joined which makes count to 3500.

Employee Appointment Letter

Date :

Appointment Letter

Dear (first name),

We have pleasure in appointing you as (designation-department) in our organization, effective (joining date) on the following terms and conditions:

1. Placement & Compensation
You will be placed in the appropriate band / responsibility level of the Company, and will be entitled to compensation (salary and other applicable benefits) as detailed in Annexure “A”. Compensation will be governed by the rules of the Company on the subject, as applicable and/or amended hereafter.

2. Salary revision
Your salary will be reviewed on April 1st of each year, or at such other time as the Management may decide. Salary revisions are discretionary and will be subject to, and on the basis of, effective performance and results.

3. Posting & Transfer
Your initial posting will be at “)”. However, your services are liable to be transferred, at the sole discretion of Management, in such other capacity as the company may determine, to any department / section, location, associate, sister concern or subsidiary, at any place in India or abroad, whether existing today or which may come up in future. In such a case, you will be governed by the terms and conditions of the service applicable at the new placement location.

That you will be on probation for a period of six months. The period of probation can be extended at the discretion of the Management and you will continue to be on probation till an order of confirmation has been issued in writing.

5. Full time employment
Your position is a whole time employment with the Company and you shall devote yourself exclusively to the business and interests of the company. You will not take up any other work for remuneration (part time or otherwise) or work in an advisory capacity, or be interested directly or indirectly (except as shareholder / debenture holder), in any other trade or business during your employment with the company, without permission in writing of the Board of Directors of the Company. You will also not seek membership of any local or public bodies without first obtaining specific permission from the Management.

6. Confidentiality
You will not, at any time, during the employment or after, without the consent of the Board of Directors disclose or divulge or make public, except on legal obligations, any information regarding the Company’s affairs or administration or research carried out, whether the same is confided to you or becomes known to you in the course of your service or otherwise.

7. Intellectual Property
If you conceive any new or advanced method of improving designs/ processes/ formulae/ systems, etc. in relation to the business/ operations of the Company, such developments will be fully communicated to the company and will be, and remain, the sole right/ property of the Company.

8. Responsibilities & Duties
Your work in the organization will be subject to the rules and regulations of the organization as laid down in relation to conduct, discipline and other matters. You will always be alive to responsibilities and duties attached to your office and conduct yourself accordingly. You must effectively perform to ensure results.

9.Past Records
If any declaration given, or information furnished by you, to the company proves to be false, or if you are found to have willfully suppressed any material information, in such cases, you will be liable to removal from services without any notice.

10. Retirement
The retirement age is 58 years. You will retire from the employment of the Company at the end of the month in which you attain 58 years of age.

11. Termination of employment
During the probationary period and any extension thereof, your services may be terminated on either side by giving one month’s notice or salary in lieu thereof. However, on confirmation the services can be terminated from either side by giving two months (60 days) notice or salary in lieu thereof.

Upon termination of employment, you will immediately hand over to the Company all correspondence, specifications, formulae, books, documents, market data, cost data, drawings, affects or records belonging to the Company or relating to its business and shall not retain or make copies of these items.

Upon termination of employment, you will also return all company property, which may be in your possession.

12. Medical Fitness
This appointment is subject to your being, and remaining, medically fit.

Please confirm your acceptance of the appointment on the above terms and conditions by signing and returning this letter for our records.

Yours faithfully,

I have read the terms and conditions of this letter of appointment and confirm my acceptance of the same.

(Signature and Date)

ANNEXURE ‘A’ : COMPENSATION DETAILS (Salary & applicable benefits)

Name :
Designation :
Date of joining :
Location :

a) Remuneration

Basic Salary Rs. /- per month
House Rent Allowance Rs. /- per month
Special Allowance Rs. /- per month
Conveyance Allowance Rs. /- per month
Medical reimbursement Limit Rs. /- per annum

Appreciation Letter

Appreciation Letter


Dear Mr./ Ms. _____________, We wish to place on record our appreciation of the good manner in which you have handled the responsibilities entrusted to you. We hope that you will continue to move ahead on the path of excellence. A copy of this letter is being placed in your personal file.

For Company Name:


Apology Letter

Apology Letter

Dear (Name of the candidate)

The purpose of this is to convey to you my sincere apologies for any inconvenience you may have experienced last month with respect to ____ (Cause of Inconvenience). We continue to be committed in reaching your expectations. Once again, Let me convey my sincere apologies concerning this and also would see to it that this would not happen in future.

Sincerely, (Your name and Your Digital Signature)

Notice of Termination of Employee

Notice of Termination of Employee


Please be advised that ____was terminated as an employee of this company on [,_________].

All staff are asked not to communicate any further with _______regarding matters which are confidential or proprietary to our company.

Mr. xyz responsibilities have been assumed by Mr. abc. Please contact you have any enquiries.

You’re sincerely


Announcement of Retirement of Long Standing Employee

Announcement of Retirement of Long Standing Employee


It is with mixed emotions that I am announcing the retirement of our __________.Mr. xyz has been with us for twenty-seven years. He began work here as a back room clerk and had a very successful period as a sales representative before assuming the responsibility of _______.

Although we will all miss Mr. xyz he has worked hard all of his career and has earned the opportunity to enjoy more time with his family and grandchildren.

Please join me in wishing ____---all the best in his retirement.

Absence From Duty Letter Format

Code. No.-


You are hereby notified that you have remained absent without permission
from / on _________ to ______________.

You are fully aware that this is against the terms and conditions of your employment and a serious misconduct under the standing orders applicable to you.

It is also an indication of your total lack of responsibility for the job assigned to you by the Management.

We therefore place on record your deliberate act of indiscipline.

You are therefore called upon to report on duty at the company gate within the seven working days from the date on which this letter is received, failing which, strict disciplinary action will be taken against you.

For _________________________.
(Personnel & Administration)

The Salary Question” – How much money do you want?

The Salary Question” – How much money do you want?

May also be phrases as, “What salary are you worth?”…or, “How much are you making now?” This is your most important negotiation. Handle it wrong and you can blow the job offer or go to work at far less than you might have gotten.

BEST ANSWER: For maximum salary negotiating power, remember these five guidelines:

1. Never bring up salary. Let the interviewer do it first. Good salespeople sell their products thoroughly before talking price. So should you. Make the interviewer want you first, and your bargaining position will be much stronger.

2.If your interviewer raises the salary question too early, before you’ve had a chance to create desire for your qualifications, postpone the question, saying something like, “Money is important to me, but is not my main concern. Opportunity and growth are far more important. What I’d rather do, if you don’t mind, is explore if I’m right for the position, and then talk about money. Would that be okay?”

3. The #1 rule of any negotiation is: the side with more information wins. After you’ve done a thorough job of selling the interviewer and it’s time to talk salary, the secret is to get the employer talking about what he’s willing to pay before you reveal what you’re willing to accept. So, when asked about salary, respond by asking, “I’m sure the company has already established a salary range for this position. Could you tell me what that is?” Or, “I want an income commensurate with my ability and qualifications. I trust you’ll be fair with me. What does the position pay?” Or, more simply, “What does this position pay?”

4. Know beforehand what you’d accept. To know what’s reasonable, research the job market and this position for any relevant salary information. Remember that most executives look for a 20-25%$ pay boost when they switch jobs. If you’re grossly underpaid, you may want more.

5. Never lie about what you currently make, but feel free to include the estimated cost of all your fringes, which could well tack on 25-50% more to your present “cash-only” salary.

HR Interview Question-What are your goals?

What are your goals?

Not having any…or having only vague generalities, not highly specific goals.

BEST ANSWER: Many executives in a position to hire you are strong believers in goal-setting. (It’s one of the reason they’ve achieved so much). They like to hire in kind.
If you’re vague about your career and personal goals, it could be a big turnoff to may people you will encounter in your job search.

Be ready to discuss your goals for each major area of your life: career, personal development and learning, family, physical (health), community service and (if your interviewer is clearly a religious person) you could briefly and generally allude to your spiritual goals (showing you are a well-rounded individual with your values in the right order).

Be prepared to describe each goal in terms of specific milestones you wish to accomplish along the way, time periods you’re allotting for accomplishment, why the goal is important to you, and the specific steps you’re taking to bring it about. But do this concisely, as you never want to talk more than two minutes straight before letting your interviewer back into the conversation.

HR Interview Question-How many hours a week do you normally work?

How many hours a week do you normally work?

You don’t want to give a specific number. Make it to low, and you may not measure up. Too high, and you’ll forever feel guilty about sneaking out the door at 5:15.

BEST ANSWER: If you are in fact a workaholic and you sense this company would like that: Say you are a confirmed workaholic, that you often work nights and weekends. Your family accepts this because it makes you fulfilled.

If you are not a workaholic: Say you have always worked hard and put in long hours. It goes with the territory. It one sense, it’s hard to keep track of the hours because your work is a labor of love, you enjoy nothing more than solving problems. So you’re almost always thinking about your work, including times when you’re home, while shaving in the morning, while commuting, etc.

HR Interview Question-May I contact your present employer for a reference?

May I contact your present employer for a reference?

If you’re trying to keep your job search private, this is the last thing you want. But if you don’t cooperate, won’t you seem as if you’re trying to hide something?

BEST ANSWER: Express your concern that you’d like to keep your job search private, but that in time, it will be perfectly okay.

Example: “My present employer is not aware of my job search and, for obvious reasons; I’d prefer to keep it that way. I’d be most appreciative if we kept our discussion confidential right now. Of course, when we both agree the time is right, then by all means you should contact them. I’m very proud of my record there.

HR Interview Question-Why have you had so many jobs?

Why have you had so many jobs?

Your interviewer fears you may leave this position quickly, as you have others. He’s concerned you may be unstable, or a “problem person” who can’t get along with others.

BEST ANSWER: First, before you even get to the interview stage, you should try to minimize your image as job hopper. If there are several entries on your resume of less than one year, consider eliminating the less important ones. Perhaps you can specify the time you spent at previous positions in rounded years not in months and years.

HR Interview Question-Are you willing to relocate or travel?

Are you willing to relocate or travel?

Answer with a flat “no” and you may slam the door shut on this opportunity. But what if you’d really prefer not to relocate or travel, yet wouldn’t want to lose the job offer over it?

BEST ANSWER: First find out where you may have to relocate and how much travel may be involved. Then respond to the question.
If there’s no problem, say so enthusiastically.

One advises you to keep your options open and your reservations to yourself in the early going, by saying, “no problem”. You strategy here is to get the best offer you can, then make a judgment whether it’s worth it to you to relocate or travel.

Also, by the time the offer comes through, you may have other offers and can make a more informed decision. Why kill of this opportunity before it has chance to blossom into something really special? And if you’re a little more desperate three months from now, you might wish you hadn’t slammed the door on relocating or traveling.

The second way to handle this question is to voice a reservation, but assert that you’d be open to relocating (or traveling) for the right opportunity.

The answering strategy you choose depends on how eager you are for the job. If you want to take no chances, choose the first approach.

If you want to play a little harder-to-get in hopes of generating a more enticing offer, choose the second.

HR Interview Question-How do you feel about working nights and weekends?

How do you feel about working nights and weekends?

Blurt out “no way, Jose” and you can kiss the job offer goodbye. But what if you have a family and want to work a reasonably normal schedule? Is there a way to get both the job and the schedule you want?

BEST ANSWER: First, if you’re a confirmed workaholic, this question is a softball lob. Whack it out of the park on the first swing by saying this kind of schedule is just your style. Add that your family understands it. Indeed, they’re happy for you, as they know you get your greatest satisfaction from your work.

If however, you prefer a more balanced lifestyle, answer this question with another: “What’s the norm for your best people here?”

If the hours still sound unrealistic for you, ask, “Do you have any top people who perform exceptionally for you, but who also have families and like to get home in time to see them at night?” Chances are this company does, and this associates you with this other “top-performers-who-leave-not-later-than-six” group.

Depending on the answer, be honest about how you would fit into the picture. If all those extra hours make you uncomfortable, say so, but phrase your response positively.

Example: “I love my work and do it exceptionally well. I think the results speak for themselves, especially in …(mention your two or three qualifications of greater interest to the employer. Remember, this is what he wants most, not a workaholic with weak credentials). Not only would I bring these qualities, but I’ve built my whole career on working not just hard, but smart. I think you’ll find me one of the most productive people here.

I do have a family who likes to see me after work and on weekends. They add balance and richness to my life, which in turn helps me be happy and productive at work. If I could handle some of the extra work at home in the evenings or on weekends, that would be ideal. You’d be getting a person of exceptional productivity who meets your needs with strong credentials. And I’d be able to handle some of the heavy workload at home where I can be under the same roof as my family. Everybody would win.”

HR Interview Question--What makes you angry?

What makes you angry?

You don’t want to come across either as a hothead or a wimp.

BEST ANSWER: Give an answer that’s suited to both your personality and the management style of the firm. Here, the homework you’ve done about the company and its style can help in your choice of words.

Examples: If you are a reserved person and/or the corporate culture is coolly professional:
“I’m an even-tempered and positive person by nature, and I believe this helps me a great deal in keeping my department running smoothly, harmoniously and with a genuine esprit de corps. I believe in communicating clearly what’s expected, getting people’s commitment to those goals, and then following up continuously to check progress.”

“If anyone or anything is going off track, I want to know about it early. If, after that kind of open communication and follow up, someone isn’t getting the job done, I’ll want to know why. If there’s no good reason, then I’ll get impatient and angry…and take appropriate steps from there. But if you hire good people, motivate them to strive for excellence and then follow up constantly, it almost never gets to that state.”

If you are feisty by nature and/or the position calls for a tough straw boss.
“You know what makes me angry? People who (the fill in the blanks with the most objectionable traits for this type of position)…people who don’t pull their own weight, who are negative, people who lie…etc.”

HR Interview Question-Can you work under pressure?

Can you work under pressure?

An easy question, but you want to make your answer believable.
BEST ANSWER: Absolutely…(then prove it with a vivid example or two of a goal or project accomplished under severe pressure.)

HR Interview Question-Would you lie for the company?

Would you lie for the company?

This another question that pits two values against one another, in this case loyalty against integrity.

BEST ANSWER: Try to avoid choosing between two values, giving a positive statement which covers all bases instead.

Example: “I would never do anything to hurt the company..”
If aggressively pressed to choose between two competing values, always choose personal integrity. It is the most prized of all values.

HR Interview Question-What are your outside interests?

What are your outside interests?
You want to be a well-rounded, not a drone. But your potential employer would be even more turned off if he suspects that your heavy extracurricular load will interfere with your commitment to your work duties.

BEST ANSWERS: Try to gauge how this company’s culture would look upon your favorite outside activities and be guided accordingly.

You can also use this question to shatter any stereotypes that could limit your chances. If you’re over 50, for example, describe your activities that demonstrate physical stamina. If you’re young, mention an activity that connotes wisdom and institutional trust, such as serving on the board of a popular charity.

But above all, remember that your employer is hiring your for what you can do for him, not your family, yourself or outside organizations, no matter how admirable those activities may be.

HR Interview Question-strong points and weak points of your boss?

Tell me honestly about the strong points and weak points of your boss (company, management team, etc.)…

Skillfull interviewers sometimes make it almost irresistible to open up and air a little dirty laundry from your previous position. DON’T

BEST ANSWER: Remember the rule: Never be negative. Stress only the good points, no matter how charmingly you’re invited to be critical.

Your interviewer doesn’t care a whit about your previous boss. He wants to find out how loyal and positive you are, and whether you’ll criticize him behind his back if pressed to do so by someone in this own company. This question is your opportunity to demonstrate your loyalty to those you work with.

HR Interview Question-What are your career options right now?

What are your career options right now?

The interviewer is trying to find out, “How desperate are you?”

Best Answer-Prepare for this question by thinking of how you can position yourself as a desired commodity. If you are still working, describe the possibilities at your present firm and why, though you’re greatly appreciated there, you’re looking for something more (challenge, money, responsibility, etc.). Also mention that you’re seriously exploring opportunities with one or two other firms.

If you’re not working, you can talk about other employment possibilities you’re actually exploring. But do this with a light touch, speaking only in general terms. You don’t want to seem manipulative or coy.

HR Interview Question-Why do you want to work at our company?

Why do you want to work at our company?

This question tests whether you’ve done any homework about the firm. If you haven’t, you lose. If you have, you win big.

BEST ANSWER: This question is your opportunity to hit the ball out of the park, thanks to the in-depth research you should do before any interview.

Best sources for researching your target company: annual reports, the corporate newsletter, contacts you know at the company or its suppliers, advertisements, articles about the company in the trade press.

HR Interview Question-Where do you see yourself five years from now?

Where do you see yourself five years from now?

One reason interviewers ask this question is to see if you’re settling for this position, using it merely as a stopover until something better comes along. Or they could be trying to gauge your level of ambition.If you’re too specific, i.e., naming the promotions you someday hope to win, you’ll sound presumptuous. If you’re too vague, you’ll seem rudderless.

BEST ANSWER: Reassure your interviewer that you’re looking to make a long-term commitment…that this position entails exactly what you’re looking to do and what you do extremely well. As for your future, you believe that if you perform each job at hand with excellence, future opportunities will take care of themselves.

Example: “I am definitely interested in making a long-term commitment to my next position. Judging by what you’ve told me about this position, it’s exactly what I’m looking for and what I am very well qualified to do. In terms of my future career path, I’m confident that if I do my work with excellence, opportunities will inevitable open up for me. It’s always been that way in my career, and I’m confident I’ll have similar opportunities here.”

HR Interview Question-Why should we hire you?

Why should we hire you?

Believe it or not, this is a killer question because so many candidates are unprepared for it. If you stammer or adlib you’ve blown it.

BEST ANSWER: By now you can see how critical it is to apply the overall strategy of uncovering the employer’s needs before you answer questions. If you know the employer’s greatest needs and desires, this question will give you a big leg up over other candidates because you will give him better reasons for hiring you than anyone else is likely to…reasons tied directly to his needs.

Whether your interviewer asks you this question explicitly or not, this is the most important question of your interview because he must answer this question favorably in is own mind before you will be hired. So help him out! Walk through each of the position’s requirements as you understand them, and follow each with a reason why you meet that requirement so well.

Example: “As I understand your needs, you are first and foremost looking for someone who can manage the sales and marketing of your book publishing division. As you’ve said you need someone with a strong background in trade book sales. This is where I’ve spent almost all of my career, so I’ve chalked up 18 years of experience exactly in this area. I believe that I know the right contacts, methods, principles, and successful management techniques as well as any person can in our industry.”

You also need someone who can expand your book distribution channels. In my prior post, my innovative promotional ideas doubled, then tripled, the number of outlets selling our books. I’m confident I can do the same for you.”

You need someone to give a new shot in the arm to your mail order sales, someone who knows how to sell in space and direct mail media. Here, too, I believe I have exactly the experience you need. In the last five years, I’ve increased our mail order book sales from $600,000 to $2,800,000, and now we’re the country’s second leading marketer of scientific and medical books by mail.” Etc., etc., etc.,

Every one of these selling “couplets” (his need matched by your qualifications) is a touchdown that runs up your score. IT is your best opportunity to outsell your competition.

HR Interview Question-Why are you leaving this current position?

Why are you leaving (or did you leave) this position?

Never badmouth your previous industry, company, board, boss, staff, employees or customers. This rule is inviolable: never be negative. Any mud you hurl will only soil your suit.
Especially avoid words like “personality clash”, “didn’t get along”, or others which cast a shadow on your competence, integrity, or temperament.


(If you have a job presently) If you’re not yet 100% committed to leaving your present post, don’t be afraid to say so. Since you have a job, you are in a stronger position than someone who does not. But don’t be coy either. State honestly what you’d be hoping to find in a new spot. Of course, as stated often before, you answer will all the stronger if you have already uncovered what this position is all about and you match your desires to it.

(If you do not presently have a job.) Never lie about having been fired. It’s unethical – and too easily checked. But do try to deflect the reason from you personally. If your firing was the result of a takeover, merger, division wide layoff, etc., so much the better.
But you should also do something totally unnatural that will demonstrate consummate professionalism. Even if it hurts , describe your own firing – candidly, succinctly and without a trace of bitterness – from the company’s point-of-view, indicating that you could understand why it happened and you might have made the same decision yourself.

Your stature will rise immensely and, most important of all, you will show you are healed from the wounds inflicted by the firing. You will enhance your image as first-class management material and stand head and shoulders above the legions of firing victims who, at the slightest provocation, zip open their shirts to expose their battle scars and decry the unfairness of it all.

For all prior positions:Make sure you’ve prepared a brief reason for leaving. Best reasons: more money, opportunity, responsibility or growth.

HR Interview Question-What are your greatest weaknesses?

What are your greatest weaknesses?

Beware - this is an eliminator question, designed to shorten the candidate list. Any admission of a weakness or fault will earn you an “A” for honesty, but an “F” for the interview.

PASSABLE ANSWER: Disguise strength as a weakness.

Example: “I sometimes push my people too hard. I like to work with a sense of urgency and everyone is not always on the same wavelength.”

Drawback: This strategy is better than admitting a flaw, but it's so widely used, it is transparent to any experienced interviewer.

BEST ANSWER: (and another reason it's so important to get a thorough description of your interviewer's needs before you answer questions): Assure the interviewer that you can think of nothing that would stand in the way of your performing in this position with excellence. Then, quickly review you strongest qualifications.

Example: “Nobody's perfect, but based on what you've told me about this position, I believe I' d make an outstanding match. I know that when I hire people, I look for two things most of all. Do they have the qualifications to do the job well, and the motivation to do it well? Everything in my background shows I have both the qualifications and a strong desire to achieve excellence in whatever I take on. So I can say in all honesty that I see nothing that would cause you even a small concern about my ability or my strong desire to perform this job with excellence.”

Alternate strategy (if you don't yet know enough about the position to talk about such a perfect fit): Instead of confessing a weakness, describe what you like most and like least, making sure that what you like most matches up with the most important qualification for success in the position, and what you like least is not essential.

Example: Let's say you're applying for a teaching position. “If given a choice, I like to spend as much time as possible in front of my prospects selling, as opposed to shuffling paperwork back at the office. Of course, I long ago learned the importance of filing paperwork properly, and I do it conscientiously. But what I really love to do is sell (if your interviewer were a sales manager, this should be music to his ears.)

HR Interview Question-What are your greatest strengths?

What are your greatest strengths?

This question seems like a softball lob, but be prepared. You don't want to come across as egotistical or arrogant. Neither is this a time to be humble.

BEST ANSWER: You know that your key strategy is to first uncover your interviewer's greatest wants and needs before you answer questions. And from Question 1, you know how to do this.

As a general guideline, the 10 most desirable traits that all employers love to see in their employees are:

1.A proven track record as an achiever...especially if your achievements match up with the employer's greatest wants and needs. "savvy".
3.Honesty...integrity...a decent human being.
4.Good fit with corporate culture...someone to feel comfortable with...a team player who meshes well with interviewer's team.
5.Likeability...positive attitude...sense of humor.
6.Good communication skills.
7.Dedication...willingness to walk the extra mile to achieve excellence.
8.Definiteness of purpose...clear goals.
9.Enthusiasm...high level of motivation.
10.Confident...healthy...a leader.

HR Interview Question

Question 1 Tell me about yourself.

Beware; about 80% of all interviews begin with this “innocent” question. Many candidates, unprepared for the question, skewer themselves by rambling, recapping their life story, delving into ancient work history or personal matters.


Start with the present and tell why you are well qualified for the position. Remember that the key to all successful interviewing is to match your qualifications to what the interviewer is looking for. In other words you must sell what the buyer is buying. This is the single most important strategy in job hunting.

So, before you answer this or any question it's imperative that you try to uncover your interviewer's greatest need, want, problem or goal.

To do so, make you take these two steps:

1. Do all the homework you can before the interview to uncover this person's wants and needs (not the generalized needs of the industry or company)

2. As early as you can in the interview, ask for a more complete description of what the position entails. You might say: “I have a number of accomplishments I'd like to tell you about, but I want to make the best use of our time together and talk directly to your needs. To help me do, that, could you tell me more about the most important priorities of this position? All I know is what I (heard from the recruiter, read in the classified ad, etc.)”

Then, ALWAYS follow-up with a second and possibly, third question, to draw out his needs even more. Surprisingly, it's usually this second or third question that unearths what the interviewer is most looking for.

You might ask simply, "And in addition to that?..." or, "Is there anything else you see as essential to success in this position?:

This process will not feel easy or natural at first, because it is easier simply to answer questions, but only if you uncover the employer's wants and needs will your answers make the most sense. Practice asking these key questions before giving your answers, the process will feel more natural and you will be light years ahead of the other job candidates you're competing with.
After uncovering what the employer is looking for, describe why the needs of this job bear striking parallels to tasks you've succeeded at before. Be sure to illustrate with specific examples of your responsibilities and especially your achievements, all of which are geared to present yourself as a perfect match for the needs he has just described.

HR Interview Question

General Guidelinesin Answering Interview Questions

Everyone is nervous on interviews. If you simply allow yourself to feel nervous, you'll do much better. Remember also that it's difficult for the interviewer as well.
In general, be upbeat and positive. Never be negative.

Rehearse your answers and time them. Never talk for more than 2 minutes straight.
Don't try to memorize answers word for word. Use the answers shown here as a guide only, and don't be afraid to include your own thoughts and words. To help you remember key concepts, jot down and review a few key words for each answer. Rehearse your answers frequently, and they will come to you naturally in interviews.

As you will read in the accompanying report, the single most important strategy in interviewing, as in all phases of your job search, is what we call: "The Greatest Executive Job Finding Secret." And that is...

Find out what people want, than show them how you can help them get it.

Find out what an employer wants most in his or her ideal candidate, then show how you meet those qualifications.

In other words, you must match your abilities, with the needs of the employer. You must sell what the buyer is buying. To do that, before you know what to emphasize in your answers, you must find out what the buyer is buying... what he is looking for. And the best way to do that is to ask a few questions yourself.

You will see how to bring this off skillfully as you read the first two questions of this report. But regardless of how you accomplish it, you must remember this strategy above all: before blurting out your qualifications, you must get some idea of what the employer wants most. Once you know what he wants, you can then present your qualifications as the perfect “key” that fits the “lock” of that position.

· Other important interview strategies:
· Turn weaknesses into strengths (You'll see how to do this in a few moments.)
· Think before you answer. A pause to collect your thoughts is a hallmark of a thoughtful person.

Difference between HRD and Personnel Management

Difference between HRD and Personnel Management


Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success.
Human Resource Development - Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.

HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively DISTICNT way, when compared with Personnel Management.
Main Differences between Personnel Management and HRM

1. Personnel management is workforce centered, directed mainly at the organization’s employees; such as finding and training them, arranging for them to be paid, explaining management’s expectations, justifying management’s actions etc. While on the other hand, HRM is resource –centered, directed mainly at management, in terms of devolving the responsibility of HRM to line management, management development etc.
2. Although indisputably a management function, personnel management has never totally identified with management interests, as it becomes ineffective when not able to understand and articulate the aspirations and views of the workforce, just as sales representatives have to understand and articulate the aspirations of the customers.
3. Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage.
HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.

Drawbacks of Performance Appraisal

A number of criticisms have been raised against the performance appraisal system. This paper will categorize these criticisms in the following categories: Biased appraisal; Focuses on the past; Inconsistency; Individualistic oriented; subjective; Limited definition of a human being; master-servant relationship and inconsistency.
Biased Appraisal

Managers and employees dislike and distrust performance appraisal system. They believe that the system is unfair (Mulins, etal (1994). Their beliefs might actually be not far from the truth, especially since the performance appraisal is susceptible to the following biases: halo effect, primacy –recency effect; central tendency and nepotism and other form of discrimination.
An appraisal is dubbed biased if its results are influenced not by the performance measured, but by other external factors. Such external factors in this regard, include:
Halo effect

The Halo effect can be defined as the decision that is influenced by one factor that either interests or frustrates the appraiser the most. It can also be caused by the appraiser’s stereotypes, attitudes and beliefs. For example, appraisers who beliefs that employees who leave the office late everyday are hard workers tend to rate an employees they see everyday leaving work four hours later as high fliers in performance. Those appraiser that believe that employees whose heads are dreadlocked are stubborn tend to rate all dreadlocked employees low on obedience and responsive to instructions.
Halo effect can also be caused by the rater basing his total rating of an employee on one job behavior that annoyed him and fascinated him the most. For example an electrician who blew up the Koepe Hoist fuse one day is rated very low on job performance simply because the appraiser was summoned to the General Manager for an explanation on that day.
Primacy –Regency effect

This is the tendency by human mind to remember the events that took place first and last in a series of different activities. This tendency affects performance appraisal system when managers tend to remember job related events that took place either at the beginning of the appraisal period or at the end (or both) but forget events that took place in the middle of the period. The appraiser goes on to make a conclusion based on those events he can remember and not taking into account other important events. It is particularly unfair for an employee who excelled through out the year but failed terribly on a task he was assigned by the appraiser towards the end of the appraisal period. Under the influence of recency effect, this employee is marked very low.

Performance Appraisal Data

Uses of Performance Appraisal Data

Data obtained from performance appraisal can be used for many purposes including the following:

Remuneration; Training and Development and Promotions

Performance related pay system fosters hard work. The more output one produces, the more money he gets. Employees tend to work extra hard to beat targets and even goes beyond so that they can afford a decent living from a relatively high income.

However, a performance related pay works well in an environment where the output can be traced systematically and easily to one person. Where a number of people work on one output, it becomes difficult to measure each member’s input. Thus the rewarding system becomes subjective, if not unfair, to other employees. This system also encourages individualistic behavior at work. Each member tend to want to maximize his time doing a task related to his appraisal and has no time for assisting and advising other fellow employees.


Performance appraisal forms in many organizations have provision for the appraiser to sight training needs of the employee so that he can close the performance gap. When the appraisal form has been completed, it is taken to Human Resources/ Training and Development department who will in turn compile a list of the training needs for all employees and organize training as required.


Promotion that results from a performance appraisal is a sign of appreciating one’s work by giving him a higher position of authority than the one he / she currently holds. For example, if performance appraisal reveals that a Miner who always achieves his targets, the Miner is then promoted into Mine Manager’s position. This style of promoting employees seeks to motivate employee to work hard so that they can also earn promotions.

However, promotions that stem solely from the results of performance appraisal tend to raise more questions than answers. Is the employee ready for the new appointment, in terms of skills and aptitude? Was the employee’s target results a direct results of his own performance or many others were involved? What is the relationship between the appraiser and the appraisee? In an African culture appraisers tend to appraise their kith and kins more favorably so that they can attain higher positions. Lastly, how do the other employees feel about the promotion?

360-Degree Evaluation

360-Degree Evaluation

In a 360 degree performance appraisal system, an employee’s performance is evaluated by all the people he/she interacts with at the organization. This includes peers, supervisors, subordinates, customers, clients and the secretary (where one interacts directly with a secretary). This style is expected to bring a pool of results that can work to produce an objective average assessment.

However, 360-degree method is time consuming and difficult to implement. It is difficult to get all the parties around each employee to do an appraisal of an employee. The system has also a potential to create enmity within employees than foster the much wanted team spirit. Employees who are scored low tend to feel short changed and would seek revenge. Once there s discord at the workplace, production will be affected, morale goes low and the whole industrial relations are frustrated.

Management By Objectives

Management By Objectives

This is the most popular method of performance appraisal. This style entails the setting up of performance objectives agreed upon by both the appraisee and the appraiser. The appraisee’s performance will be managed against those objectives and hence his appraisal score will depend on the achievement of the objectives.

This method gives an employee a clear picture of what he or she is expected to achieve in his organizations. However, in many cases the performance appraisal system focuses more on the set objectives and little on how the employee will achieve them, that is, the tools and potential drawbacks. It also assumes like any other performance appraisal system, that an employee works like a machine that when given the specific dimensions and fed with inputs, the specific out put should come out. An employee has other factors that may cause him not to produce as per agreement

Performance Appraisal-Introduction

Performance Appraisal

Performance appraisal can be defined as a system of measuring employee’s performance relative to the assigned or agreed objectives. The process starts with the supervisor and or with the subordinate agreeing on specific objectives that need to be met on an agreed time period. The objectives that are used in the Performance appraisal stem from the main organizational objectives that are reduced to Departmental goals and now to individual goals. At the end of the agreed period such as six months or 24 months (differs with organizations), an employee’s performance is measured juxtaposed the agreed goals.

The appraiser who is the supervisor will be using a stipulated scale on which to score the appraisee’s (employee) performance attributes. See Figure 1.0 below for an example of part of an performance appraisal form.

Monday, February 14, 2011

Performance Development Plan Format

Performance Development Plan Format

Employee Name:
Reason for Evaluation: Quarterly / Other? __________________________
Job Description:
Performance Goals:

List the employee's most important work performance goals for the quarter.
Specific Duty / Goal / Tools Needed for Goal / Completion Date

dditional Tools or Training Needed:
Discussion and Measurement:
Personal and Professional Developmental Goals:

List the employee's most important personal and professional developmental goals for the quarter.

Specific Goal / How will we know it is being achieved? / Tools Needed for Goal / Completion Date
Additional Tools or Training Needed:
Discussion and Measurement:
Employee Comments:
Employee Suggestions for Supervisor or Departmental Development:
Date for Next Development Meeting: (Schedule quarterly.)
Employee’s Signature:
Supervisor’s Signature:

Preparation for the Performance Development Meeting

Preparation for the Performance Development Meeting

· Schedule the Performance Development Planning (PDP) meeting and define pre-work with the staff member to develop the performance development plan (PDP).
· The staff member reviews personal performance, documents “self-assessment” comments and gathers needed documentation, including 360 degree feedback results, when available.
· The supervisor prepares for the PDP meeting by collecting data including work records, reports, and input from others familiar with the staff person’s work.
· Both examine how the employee is performing against all criteria, and think about areas for potential development.
· Develop a plan for the PDP meeting which includes answers to all questions on the performance development tool with examples, documentation and so on.

Performance Development Process (PDP) Meeting

Performance Development Process (PDP) Meeting

1.Establish a comfortable, private setting and rapport with the staff person.
2.Discuss and agree upon the objective of the meeting, to create a performance development plan.
3.The staff member discusses the achievements and progress he has accomplished during the quarter.
4.The staff member identifies ways in which he would like to further develop his professional performance, including training, assignments, new challenges and so on.
5.The supervisor discusses performance for the quarter and suggests ways in which the staff member might further develop his performance.
6.Add the supervisor's thoughts to the employee's selected areas of development and improvement.
8.Examine job responsibilities for the coming quarter and in general.
9.Agree upon standards for performance for the key job responsibilities.
10.Set goals for the quarter.
11.Discuss how the goals support the accomplishment of the organization's business plan, the department's objectives and so on.
12.Agree upon a measurement for each goal.
13.Assuming performance is satisfactory, establish a development plan with the staff person, that helps him grow professionally in ways important to him.
14.If performance is less than satisfactory, develop a written performance improvement plan, and schedule more frequent feedback meetings. Remind the employee of the consequences connected with continued poor performance.
15.The supervisor and employee discuss employee feedback and constructive suggestions for the supervisor and the department.
16.Discuss anything else the supervisor or employee would like to discuss, hopefully, maintaining the positive and constructive environment established thus far, during the meeting.
17.End the meeting in a positive and supportive manner. The supervisor expresses confidence that the employee can accomplish the plan and that the supervisor is available for support and assistance.
18.Set a time-frame for formal follow up, generally quarterly.

Performance Management and Development in the General Work System.

Performance Management and Development in the General Work System.

· Define the purpose of the job, job duties, and responsibilities.
· Define performance goals with measurable outcomes.
· Define the priority of each job responsibility and goal.
· Define performance standards for key components of the job.
·Develop and administer a coaching and improvement plan if the employee is not meeting expectations.

Performance Management System

Performance Management System

How many supervisors feel their time is well-spent professionally to document and provide proof to support their feedback - all year long? Plus, the most important outputs for the performance appraisal, from each person's job, may not be defined or measurable in your current work system. Make the appraisal system one step harder to manage and tie the employee's salary increase to their numeric rating.

If the true goal of the performance appraisal is employee development and organizational improvement, consider moving to a performance management system. Place the focus on what you really want to create in your organization - performance management and development. As part of that system, you will want to use this checklist to guide your participation in the Performance Management and Development Process. You can also use this checklist to help you in a more traditional performance appraisal process.

In a recent Human Resources Forum poll, 16 percent of the people responding have no performance appraisal system at all. Supervisory opinions, provided once a year, are the only appraisal process for 56 percent of respondents. Another 16 percent described their appraisals as based solely on supervisor opinions, but administered more than once a year.

If you follow this checklist, I am convinced you will offer a performance management and development system that will significantly improve the appraisal process you currently manage. Staff will feel better about participating and the performance management system may even positively affect - performance.

Preparation and Planning for Performance Management

Preparation and Planning for Performance Management

Much work is invested, on the front end, to improve a traditional employee appraisal process. In fact, managers can feel as if the new process is too time consuming. Once the foundation of developmental goals is in place, however, time to administer the system decreases. Each of these steps is taken with the participation and cooperation of the employee, for best results.

The Performance Management Cycle

The Performance Management Cycle

The Performance Management is a process and cyclical in nature, consisting of four critical phases, namely monitoring, coaching, supporting and recognizing employee performance.

1. Monitoring - the performance management policy will be reviewed every two years to assess its effectiveness. Equity and parity of treatment shall be demonstrated by regular reports, detailing rewards, where relevant information is made available. Transparency and fairness shall be monitored and action taken where issues emerge.

2. Coaching - work is interesting and challenging when employees are informed about organizational goals. Recognition shall be given for good performance as well as opportunities for professional development. By employing effective coaching skills, managers shall apply skills like informing, listening, observing and giving constructive feedback.

3. Supporting - the company shall focus on developing employees to meet their full potential. It shall record the development needs of each employee. The aims and objectives of the company shall be aligned to the development needs of each employee, thereby achieving both employee and organizational goals.

4. Recognition - the company shall acknowledge and reward an employee for good performance. This shall be done in the form of appreciation, institution of an award system, promotion as well as opportunities for professional development.

Fair Reward System

Fair Reward System

Even though all employees receive salaries commensurate with expected standard of performance, additional remunerative rewards must be offered to employees in return for specific performance. The system shall link rewards more clearly with employees’ achievements.

Rewards may be remunerative and non-remunerative:o remunerative rewards may take the form of promotion, payment of advanced or discretionary increment.o non-remunerative rewards which may include flexible working arrangements and support for one’s academic or professional development in the form of sabbatical leave, study leave etc.o All rewards whether financial or non-financial in nature, shall carry resource implications and as such, the level of rewards shall be based on the principle of affordability. The nature and type of rewards by the Company shall be reviewed from time to time.

General Principles

For the Performance Management to function effectively, all elements of this process must cohere. The inter-linking feature throughout each of these processes shall be the Employee Development Plan (EDP), as set out in the appendix. The EDP shall form a basis of discussion between the Line Manager and the employee.· The Company shall regard its obligations and those of its employees as being governed by the following principles

It shall engage people with skills, knowledge, abilities, professional credentials and values that are congruent with those of the Company.o It shall manage employees respectfully through processes that are procedurally fair, transparent and encourage flexible response in the work environment. It shall develop employees’ capabilities to reach targets and goals of the Company.o It shall provide honest, evidence-based feedback to enable monitoring and adjustment of the performance.o It shall preserve confidentiality during the whole process and disseminate formal reports to only employees’ line managers and where appropriate, the Human Resource Department.

Performance Rating

Performance Rating

Performance ratings represent a summary of the overall performance against key targets, which will confirm that there had been a fair assessment based on the available data.

The criteria for assessing performance is defined in the diagram below:
Rating Definition
Range Merit Increase (%)
4 - 5
Highly Competent
3 - 3.9
2 - 2.9
Needs Improvement
1 -1.9
Not Acceptable

Performance Appraisal Procedure

Performance Appraisal Procedure

. The appraisal procedure will be undertaken to:·

. Review employee performance against assigned tasks and responsibility

· Identify areas of strengths that need to be built on and weaknesses that need to overcome/addressed and most importantly unearth potential that must be developed.

· Identify Training Needs of employees

· Create a basis for rewarding superior performance

· Plan for the following year.

Performance Management Policy-Purpose

Performance Management Policy-Purpose

This policy helps employees to lead, create and deploy talent and resources to achieve strategic aims and a quality performance management system.The purpose of this management framework is to provide a clear, coherent, fair and equitable framework for managers to use throughout any phase of the performance management process. It also makes explicit the policies to be used in support of achieving desired outcomes for both employees and the entire section to which they belong.

Performance Management Policy

Performance Management Policy-Introduction

Decisions concerning career development, promotion, succession planning and compensation depend on information provided through effective Performance Management. Pioneer Food Cannery Ltd shall therefore ensure that all employees understand the requirements of their jobs as well as the expected results. The actual assessment of how well they have done will be undertaken annually through a comprehensive appraisal of their performance in relation to their expectations. By so doing, top performers are identified with ease which ensures the company to leverage employees to the best of their ability, acquiring the right person, at the right time, in the right place at the right price.

Training Inputs

Training Inputs

1.Training needs are identified on the basis of performance gaps in the previous year and performance opportunities for the next year; these are assessed through performance appraisals and come as inputs to the training subsystem.

2.Training needs are assessed on the basis of potential appraisal exercises and assessment centers.Training needs are assessed on basis of technological changes in the organization, strategic moves and other changes in the environment.

3. Training needs are assessed on the basis of the norms, values and other cultural aspects the organization wants to develop in its members.