Module 3: Human resource management
PERSONNEL MANAGEMENT N5 NDOU N. R)
REWARDING PEOPLE IN ORGANISATIONS
The idea of rewarding people in an organisation is geared towards improving
overall performance at every level of the hierarchy. There are two core
elements here:
• Rewarding employee performance utilising a system of performance
appraisal.
• Rewarding employees according to the importance of the job utilising a
system of job evaluation.
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MODULE 3HUMAN RESOURCE
MAINTANANCE AND REWARD
PERSONNEL MANAGEMENT N5 NDOU N. R)
REWARDING PEOPLE IN THE ORGANISATION
THE IDEA OF REWARDING PEOPLE IN THE ORGANISATION
IMPROVES PERFOMANCE AND MOTIVATE EMPLOYEES
THERE ARE TWO CORE ELEMENTS IN REWARDING PEOPLE:
1. REWARDING PERFOMANCE USING PERFOMANCE APPRAISAL
2. REWARDING EMPLOYEES ACCORDING TO THE IMPORTANCE OF
JOB USING JOB EVALUATION
Module 3: Human resource management (continued)
PERSONNEL MANAGEMENT N5 NDOU N. R)
PERFORMANCE APPRAISAL
Before a performance appraisal system can be put into place, there should
be a clear agreement between employees and management about the
objectives of the appraisal. Managing employee performance is a key
managerial responsibility.
PERFORMANCE APPRAISAL Is the exercise taken to evaluate the
employees’ performance Or measuring the extent to which employees
carry out their duties
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PERFOMACE APPRAISAL,REWARD
MANAGEMENT AND JOB
PERSONNEL MANAGEMENT N5 NDOU N. R)
EVALUATION
PERFOMANCE APPRAISAL IS THE PROCESS USED TO DETERMINE
THE EXTENT TO WHICH EMLOYEES CARRIES OUT THEIR DUTIES
EFFECTIVELY
JOB EVALUATION IS A SYSTEMATIC PROCESS FOR ASSESSING THE
RELATIVE WORTH OF JOBS WITHIN AN ORGANISATION
REWARD MANAGEMENT IS THE MANAGEMENT OF A SYSTEM
WHERE INDIVIDUALS ARE REWARDED FOR THEIR LEVEL OF
PERFOMANCE
STEPS IN PERFOMANCE
APPRAISALS
PERSONNEL MANAGEMENT N5 NDOU N. R)
SETTING PERFOMANCE OBJECTIVES AND STANDARDS
DAY-TO-DAY PERFOMANCE COACHING
FORMAL PERFOMANCE REVIEW AND APPRAISAL
ANNUAL PERFOMANCE APPRAISAL
FORWARD APPRAISAL RATING TO THE HR DEPARTMENT FOR THE PURPOSE
OF:
1. HUMAN RESOURCE PLANNING
2. SELECTION
3. PROMOTABILITY ASSESSMENT
4. DETERMINING SALARY INCREASES
5, IDENTIFYING TRAINING AND DEVELOPMENT NEEDS
6. REWARDING EMPLOYEES
OBJECTIVES OF PERFOMANCE
APPRAISAL
PERSONNEL MANAGEMENT N5 NDOU N. R)
TO CONTROL THE PERFOMANCE AGAINST THE SET STANDARDS
TO IDENTIFY THE EXTENT TO WHICH EMPLOYEES ARE WORKING
EFFECTIVELY
TO IDENTIFY PERFOMANCE PROBLEMS OR CHALLENGES
MOTIVATE EMPLOYEES TO ACHIEVE THEIR OBJECTIVES AND PERSONAL
GOALS
ENSURE EMPLOYEES ARE REWARDED FAIRLY
DEVELOP EMPLOYEES
ASSIST WITH HUMAN RESOURCE PLANNING
TO PROVIDE METHODS OF TRAINING
STRENGTHEN COMMUNICATION BETWEEN MANAGEMENT AND EMPLOYEES
PROVIDE LEGAL DEFENSIBILITY FOR PROMOTION, DEMOTION AND LAYOFF
ROLES AND RESPONSIBILITIES IN
PERFOMANCE APPRAISAL
PERSONNEL MANAGEMENT N5 NDOU N. R)
EMPLOYEES ARE RESPONSIBLE FOR PERFOMING THEIR DUTIES
MANAGERS AND SUPERVISORS ARE RESPONSIBLE FOR
MANAGING EMPLOYEES’ PERFOMANCE
HR DEPARTMENT RESPONSIBLE FOR:
1. ASSISTING MANAGERS AND SUPERVISORS TO SET
MEANINGFUL OBJECTIVES
2. CONDUCTING TRAINING COURSES AND WORKSHOPS
3. ASSIST MANAGERS AND SUPERVISORS TO APPLY PERSOMANCE
APPRAISAL SYSTEM
ADMINISTERING THE SYSTEM FOR THE ORGANISATION
POTENTIAL PITFALLS FOR
PERFOMANCE APPRAISAL
PERSONNEL MANAGEMENT N5 NDOU N. R)
IMPACT ON EMPLOYEES’ TASKS AND INITIATIVE (REDUCING EMPLOYEES’)
IMPACT ON TEAMWORK
LACK OF RECOGNITION FOR RISK TAKING
INFORMATION PROBLEMS (IT HAS TO BE ACCURATE)
POOR MEASUREMEN OF QUALITY.
ADMINISTRATIVE LOAD
ACTUAL IMPACT
TRADE UNION OPPOSITION
DESIGN PROBLEMS
INAPPROPRIATE STANDARDS
RESULTS ARE IGNORED
PROBLEMS RELATING TO THE
MANAGER EVALUATING
PERSONNEL MANAGEMENT N5 NDOU N. R)
PERFOMANCE
EVALUATION OF THE WRONG ELEMENTS
TOO MUCH FOCUS ON RECENT BEHAVIOUR AND PERFOMANCE
HALLO EFFECT
POSITION EFFECT
EGO EFFECT
EGO EFFECT
SIMILARITY ERROR
CENTRAL TENDENCY
FORCING INFORMATION TO FORCE NON-PERFOMANCE CRITERIA
GENERAL GUIDELINES ON
PERFOMANCE APPRAISAL
PERSONNEL MANAGEMENT N5 NDOU N. R)
IT MUST BE DONE WITH ACURACY, FAIRNESS, SENSITIVITY AND
EMPATHY
UNDERTAKE APPRAISAL IN BUSINESS CYCLES
ALWAYS EVALUATE PERFOMANCE AGAINST STANDARDS
ENSURE EVALUATION IS RELEVANT TO THE JOB
ENSURE THAT EMPLOYEES PARTICIPATE IN THE APPRAISAL PROCESS
TRAIN EVALUATORS ON HOW TO USE THE SYSTEM
CONCENTRATE ON QUALITY
BE TRANSPARENT THROUGHOUT THE PROCESS
DO NOT COMPLECATE THE PROCESS
SUPPORT APPRAISAL WITH FEEDBACK
GENERAL GUIDELINES ON
PERFOMANCE APPRAISAL
PERSONNEL MANAGEMENT N5 NDOU N. R)
ENSURE APPRAISAL IS RELIABLE AND CONSISTENT
ENSURE THAT MANAGERS SHOULD BE THE FIRST TO BE
EVALUATED
THE FOLLOWING CONTENT IS
IMPORTANT FOR PERFOMANCE
PERSONNEL MANAGEMENT N5 NDOU N. R)
APPRAISAL
STEPS IN PERFOMANCE APPRAISAL PROCESS
THE OBJECTIVES OF PERFOMANCE APPRAISAL
ROLES AND RESPONSIBILITIES IN PERFOMANCE APPRAISAL
POTENTIAL PITFALLS OF PERFOMANCE APPRAISAL
PROBLEMS RELATED TO MANAGER EVALUATNG PERFOMANCE
GENERAL GUIDELINES FOR PERFOMANCE APPRAISAL
PERFOMANCE APPRAISAL TOOLS
DOIFFERENT APPROACHES FOR PERFOMAMCE APPRAISAL
PAGE 48- PAGE 59
Module 3: Human resource management (continued)
PERSONNEL MANAGEMENT N5 NDOU N. R)
JOB ANALYSIS
The systematic process used to collect information about a specific job in
order to explore the activities required to effectively perform that job is called
job analysis. This is a critical first step prior to commencing with determining
what a job is worth and therefore the reward that should be attached to the
position through the process of job evaluation.
[Link]
Module 3: Human resource management (continued)
PERSONNEL MANAGEMENT N5 NDOU N. R)
JOB EVALUATION
Job evaluation is the determination of a job’s relative worth in terms of
remuneration. Jobs on all levels of the organisation are compared and a
relative value is coupled to a job. Minimum knowledge and skill requirements
as well as responsibilities of each job are identified and ranked.
[Link]
Module 3: Human resource management (continued)
PERSONNEL MANAGEMENT N5 NDOU N. R)
REWARD (COMPENSATION) MANAGEMENT
Reward management is the management of a system where individuals are
rewarded for their work, diligence and level of performance within an
organisation with financial incentives.
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Module 3: Human resource management (continued)
PERSONNEL MANAGEMENT N5 NDOU N. R)
INCENTIVE SCHEMES
Incentive schemes are established to motivate employees to work to the
maximum level of their capability, i.e. to be as productive as possible.
Incentive schemes can be applied to individuals or to groups. Traditional
systems of rewarding employees may not lead to maximum employee
effectiveness.
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Module 3: Human resource management (continued)
PERSONNEL MANAGEMENT N5 NDOU N. R)
TERMINATION OF SERVICE
Termination of service refers to leaving the service of an employer.
Termination can be initiated by the employee or the employer and it can be
voluntarily or compulsory. Termination, or separation, includes laying
off/retrenching, firing/discharging/dismissing or boarding by the employer; or
resignation, pension/retirement and death on the part of the employee.
[Link]
DETAILS TO FOLLOW ON THE
FOLLOWING TOPICS
PERSONNEL MANAGEMENT N5 NDOU N. R)
REWARD / COMPENSATION MANAGEMENT
JOB ANALYSIS
JOB EVALUATION