INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource Management and Human Resource Development

Definition:

HRM is the process of managing people in organizations in a structured and

thorough manner. This covers the fields of staffing (hiring people), retention
of people, pay and perks setting and management, performance
management, change management and taking care of exits from the
company to round off the activities. This is the traditional definition of HRM
which leads some experts to define it as a modern version of the Personnel
Management function that was used earlier.
We have chosen the term art and science as HRM is both the art of
managing people by recourse to creative and innovative approaches; it is a
science as well because of the precision and rigorous application of theory
that is required.
Human Resource Development (HRD) means to develop available manpower
through suitable methods such as training, promotions, transfers and
opportunities for career development. HRD programs create a team of welltrained, efficient and capable managers and subordinates. Such team
constitutes an important asset of an enterprise. One organisation is different
from another mainly because of the people (employees) working there in.
According to Peter F. Drucker, "The prosperity, if not the survival of any
business depends on the performance of its managers of tomorrow." The
human resource should be nurtured and used for the benefit of the
organisation.
Uses of Human Resource Management in an organization:

Human Resource Management (HRM) is the function within an organization

that focuses on recruitment of, management of, and providing direction for
the people who work in the organization. It can also be performed by line
managers.
Human Resource Management is the organizational function that deals with
issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training.
HRM is also a strategic and comprehensive approach to managing people
and the workplace culture and environment. Effective HRM enables
employees to contribute effectively and productively to the overall company
direction and the accomplishment of the organization's goals and objectives.
Human Resource Management is moving away from traditional personnel,
administration, and transactional roles, which are increasingly outsourced.
HRM is now expected to add value to the strategic utilization of employees
and that employee programs impact the business in measurable ways. The
new role of HRM involves strategic direction and HRM metrics and
measurements to demonstrate value.
The Human Resource Management (HRM) function includes a variety of
activities, and key among them is responsibility for human resources -- for
deciding what staffing needs you have and whether to use independent
contractors or hire employees to fill these needs, recruiting and training the
best employees, ensuring they are high performers, dealing with
performance issues, and ensuring your personnel and management practices
conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and
personnel policies. Usually small businesses (for-profit or nonprofit) have to
carry out these activities themselves because they can't yet afford part- or
full-time help. However, they should always ensure that employees have -and are aware of -- personnel policies which conform to current regulations.
These policies are often in the form of employee manuals, which all
employees have.
HRM is widening with every passing day. It covers but is not limited to HR
planning, hiring (recruitment and selection), training and development,
payroll management, rewards and recognitions, Industrial relations,
grievance handling, legal procedures etc. In other words, we can say that its

about developing and managing harmonious relationships at workplace and

striking a balance between organizational goals and individual goals.

Advantages / Importance of HR:

Meeting manpower needs: Every Organisation needs adequate and properly
qualified staff for the conduct of regular business activities. Imaginative HRP
is needed in order to meet the growing and changing human resource needs
of an organisation.
Replacement of manpower: The existing manpower in an Organisation is
affected due to various reasons such as retirement and removal of
employees and labour turnover. HRP is needed to estimate the shortfall in
the manpower requirement and also for making suitable arrangements for
the recruitment and appointment of new staff.
Meeting growing manpower needs: The expansion or modernisation
programme may be undertaken by the enterprise. Manpower planning is
needed in order to forecast and meet additional manpower requirement due
to expansion and growth needs through recruitment and suitable training
programs.
Meeting challenges of technological environment: HRP is helpful in effective
use of technological progress. To meet the challenge of new technology
existing employees need to be retrained and new employees may be
recruited.
Coping with change: HRP enables an enterprise to cope with changes in
competitive forces, markets, products, and technology and government
regulations. Such changes generate changes in job content, skill, number
and type of personals.
Increasing investment in HR: An employee who picks up skills and abilities
becomes a valuable resource because an organisation makes investments in
its manpower either through direct training or job assignments.

Adjusting manpower requirements: A situation may develop in; an

organisation when there will be surplus staff in one department and shortage
of staff in some other department. Transfers and promotions are made for
meeting such situations.
Recruitment and selection of employees: HRP suggests the type of
manpower required in an organisation with necessary details. This facilitates
recruitment and selection of suitable personnel for jobs in the Organisation.
Introduction of appropriate selection tests and procedures is also possible as
per the manpower requirements.
Placement of manpower: HRP is needed as it facilitates placement of newly
selected persons in different departments as per the qualifications and also
as per the need of different departments. Surplus or shortage of manpower is
avoided and this ensures optimum utilization of available manpower.
Training of manpower: HRP is helpful in selection and training activities. It
ensures that adequate numbers of persons are trained to fill up the future
vacancies in the Organisation.

HR TOPICS - FUNCTIONS

Recruitment and Selection Process

Complete Recruitment life cycle

Levels of Companies
Technologies and Domineer
Portal Explanation
Explanation of Job Description and Analyzing of Requirement
Sourcing of Profiles from Portals

Screening of profiles as per the requirement

Calling the Candidates
Formatting of profiles and Trackers Preparation
Maintenance of Database
Training and Development
Concept of Training and Development
Training Needs Identification Process
Designing Annual Training Plans
Training Execution
Designing Employee Development Initiatives
Designing Supervisory Development Programs
Designing Management Development Programs
What is Training ROI and how to Calculate
Introduction to Best Trainer Skills, Knowledge and Abilities
Induction and Orientation
How to Design Induction Programs and Execution
How to Design on the Job Training Programs and Monitoring
How to evaluate effectiveness of Induction and on the Job Training Programs
Probation Confirmation and HR Role
Team Management Skills
Understanding What is a Team
Understanding Team Development Stages

What is your Team Membership Orientation

How to improve your effectiveness as Team Member
What is Team Leadership
Understanding my Orientation

Human Resource (or personnel) management, in the sense of getting things

done through people, is an essential part of every managers responsibility,
but many organizations find it advantageous to establish a specialist division
to provide an expert service dedicated to ensuring that the human resource
function is performed efficiently.

People are our most valuable asset is a clich, which no member of any
senior management team would disagree with. Yet, the reality for many
organizations are that their people remain under valued, under trained and
under utilized.

The market place for talented, skilled people is competitive and expensive.
Taking on new staff can be disruptive to existing employees. Also, it takes
time to develop cultural awareness, product / process / organization
knowledge and experience for new staff members.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are
essential for the effective functioning of the organization:

1.

Recruitment

2.

Selection

3.

Induction

4.

Performance Appraisal

5.

Training & Development

Recruitment

The process of recruitment begins after manpower requirements are

determined in terms of quality through job analysis and quantity through
forecasting and planning.

Selection

The selection is the process of ascertaining whether or not candidates

possess the requisite qualifications, training and experience required.

Induction

a) Induction is the technique by which a new employee is rehabilitated into

the changed surroundings and introduced to the practices, policies and
purposes of the organization.

WHAT IS PERFORMANCE APPRAISAL?

Performance Appraisal is defined as the process of assessing the

performance and progress of an employee or a group of employees on a
given job and his / their potential for future development. It consists of all
formal procedures used in working organizations and potential of employees.
According to Flippo, Performance Appraisal is the systematic, periodic and
an important rating of an employees excellence in matters pertaining to his
present job and his potential for a better job.

CHARACTERISTICS

1.

Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an

employee in terms of his job.

3. It is scientific and objective study. Formal procedures are used in the

study.

4. It is an ongoing and continuous process wherein the evaluations are

arranged periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information

necessary for making objective and correct decision an employee.

PROCESS

The process of performance appraisal:

1.

Establishing performance standards

2.

Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6.Taking Corrective Action

LIMITATIONS

1.

Errors in Rating

2.

Lack of reliability

3.

Negative approach

4.

Multiple objectives

5. Lack of knowledge

Purposes of performance appraisal

Appraisal of the performance of the employees is carried out for two major
purposes, namely, administrative purpose and self improvement and self
development of employees and is shown in Fig. 3.1.

Promotion and placement of employees

One of the major administrative purposes of performance appraisal is to

promote the employees taking into account of their competence and
performance over certain period of service. Quality and quantum of work
performed serves as the basis for promotion in cases when promotions are
giving by merits. Appraisal system identifies whether the employee can be
assigned higher positions in the organization. The promotion on the basis of
appraisal is in the interest of both the management an employee.
Performance appraisal is useful for posting the right candidate within the
organization. The performance appraisal is not useful for the initial
placement but is useful for the subsequent placements.

Transfers and demotions

In organization, certain personnel actions, namely, transfer, demotions,
disciplinary actions and discharges are required to be taken by the
management. Such actions need to be taken in a fair and impartial manner.
The performance appraisal reports can be used for taking final decisions on
such activities. The suitable employee can be identified for new assignments
or deputation by evaluating the performance appraisal.

Wages and salary payment

Wage or salary payment is normally linked with performance appraisal. Wage
increase is based on the performance appraisal reports. Better performance
in the managerial level is normally rewarded by additional salary payment.
For judging the performance of executives, periodical appraisal is essential. It
is also useful for allocating rewards to deserving employees.

Training and manpower development

Performance appraisal is useful for validating the selection for specialized

training and development programmes. Appraisal helps to identify the skills
and competences and also the weakness in the employee. The appraisal
enables management to identify the areas of training programme to be
organized in future. The need for executive training for managers in the new
placements is organized after evaluation of performance appraisal. The
appraisal helps to identify requirement of in-house or institutional training.
Performance appraisal is a useful tool of evaluating training and
development needs of the organization.

Personnel research
Performance appraisal serves as a feedback to management in the area of
personnel research. The human capital in the organization can be measured
and forecasted based on the appraisal. The manpower replacement
procedure can be initiated for the retiring personnel in the organization. The
appraisal is one of the components used for the manpower demand forecast.
The valuable information in the appraisal can be used to measure motivation
and satisfaction in employees.

Favorable impact on employees

The performance appraisal creates a favourable impact on employees. The
appraisal is a tool for identifying talented persons, promotions, training and
salary fixation. The employees will be motivated to score high in the
appraisal system for receiving incentives or better placement. The, appraisal
will help to take a meaningful decision in transfer and promotions. In brief,
performance appraisal gives favourable impact on employees. Performance
appraisal improves the morale and offers opportunities of career
development.

Miscellaneous administrative purposes of appraisal

The miscellaneous administrative purposes are (i) to confirm the service
probationary of the employees after the completion of probationary period

successfully, (ii) to improve communication and cooperation between

superior and subordinates and (iii) to determine whether HR programmes,
namely, selection, training and transfers are effective or not.

Self improvement of employees

In addition to administrative purpose, performance appraisal facilitates self
improvement and development of employee. Appraisal suggests the
weakness and shortcomings of the employee. It serves as feed back to the
employee. Appraisal is followed by discussion between the rater and
employee in a spirit of cooperation and mutual understanding. Counseling of
employees for improving their performance is conducted by post appraisal
interviews. Performance appraisal is important and useful for the
organization to achieve long term goals. Performance appraisal helps to
improve, grow and develop for higher positions in the organization.

Approaches of Performance appraisal

There are two approaches in performance appraisal, namely, informal
approach and systematic approach. Informal approach is conducted
whenever the supervisor feels it is necessary. The day-to-day working
relationship between a manager and employee offers an opportunity for the
judgment of employee performance. The judgment of informal approach is
communicated on job or on coffee time conversation. Frequent internal
feedback to employees can avoid surprises when the formal evaluation is
communicated.
Systematic appraisal is used when the contact between the manager and the
employee is formal and system is in place to report managerial impressions
and observations on employee performance. Its aim is to support
administrative and developmental decisions.
Timing of appraisal
A regular time interval is a feature of systematic appraisals that distinguishes
them from informal appraisals. The appraisals are conducted once or twice in
an year. The companies in high technology or software field conduct

appraisal in every six months so that the employees are promoted more
frequently. This results in reduction in turnover of employees. In Apollo, the
appraisal is conducted in every year.
Objectives of performance appraisal
To review the performance of the employees over a period of time
To judge the gap between actual and desired performance
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior
and subordinates
To diagnose the strengths and weakness of the individuals so as to identify
the training and development needs in the future
To provide feedback to the employees regarding their past performance
Provide information to assist in the other personal decisions in the
orgnaisation.
Provide information to assist in other personal decisions in the organizations.
To provide clarity of expectations and responsibilities of the functions to be
performed by employees
To judge the effectiveness of the human resource functions, namely,
recruitment, selection, training and development.
To reduce the grievances of the employees
To calibrate, refine and reward the performance of the employee.
To focus the progress in performance of employees.

Performance Appraisal for different workgroups

Workforce alignment empowers managers and employees by creating
ownership and commitment in the organisation's success by aligning goals
and development to overall strategy and objectives. Furthermore,
organisations taking a competence-based Performance Appraisal approach
achieve better business results, get more engaged employees and increased
retention.

Performance Appraisal permits to build, streamline, and deliver strategic

initiatives across recruiting, on-boarding, performance appraisals,
competence assessments, learning and development, succession planning
and more.
Goal alignment & Performance Appraisal
Feedback and recognition
Development planning
Reports and Analytics
Flexible forms

Goal management functionality shows each employee how their individual

performance goals align and support the organisation's strategy. By setting
SMART goals (Specific Measurable Achievable Realistic Timely) and
activities to achieve these, managers and employees get a practical and
concrete tool to ensure they are on the right course.
Performance Appraisal simplifies and streamlines the entire employee
performance evaluation and can be used standalone or integrated with any
of the other modules to deliver a complete cloud-based, performance driven
human capital management solution.

HR professionals: Get the most convenient and cost-effective way to

conduct performance evaluations, align and track goals, track employee
profiles, develop critical competence and more. Now, HR can play a strategic
role in helping the organisation build a world-class workforce that is aligned
and delivering on the business strategy.

Management: Get a single system that keeps the organisation aligned.

They can see how employee goals are aligned with those of the organisation,
know where performance gaps exist and how they're being addressed, and
ensure the organisation has the skills it needs to succeed.

Managers: Get a convenient and powerful tool for aligning and tracking
goals, managing employee performance, providing meaningful feedback and
coaching, and supporting employee development.

Employees: Get their own personalized page where they can access their
appraisals, goals, development plans and more, in just a few clicks.
Employees feel more connected and engaged because they know what's
expected of them and can see how they're helping the organisation succeed.

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable

challenge, even considering the available battery of appraisal techniques.
But attempting to avoid these pitfalls by doing away with appraisals
themselves is like trying to solve the problems of life by committing suicide.
The more logical task is to identify those appraisal practices that are (a) most

likely to achieve a particular objective and (b) least vulnerable to the

obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal

stated at the outset of the article, I shall briefly review each, taking them
more or less in an order of increasing complexity.

The best-known techniques will be treated most briefly.

Essay appraisal

In its simplest form, this technique asks the rater to write a paragraph or
more covering an individual's strengths, weaknesses, potential, and so on. In
most selection situations, particularly those involving professional, sales, or
managerial positions, essay appraisals from former employers, teachers, or
associates carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more
consistent and reliable. Typically, a graphic scale assesses a person on the
quality and quantity of his work (is he outstanding, above average, average,
or unsatisfactory?) and on a variety of other factors that vary with the job
but usually include personal traits like reliability and cooperation. It may also
include specific performance items like oral and written communication.

FIELD REVIEW
The field review is one of several techniques for doing this. A member of the
personnel or central administrative staff meets with small groups of raters
from each supervisory unit and goes over each employee's rating with them
to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a
consensus, and (c) determine that each rater conceives the standards
similarly. .

FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and
establish objective standards of comparison between individuals, but it does
not involve the intervention of a third party.

MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by unfairly
high standards, employees in some organizations are being asked to set - or
help set - their own performance goals. Within the past five or six years, MBO
has become something of a fad and is so familiar to most managers that I
will not dwell on it here.

RANKING METHODS
For comparative purposes, particularly when it is necessary to compare
people who work for different supervisors, individual statements, ratings, or
appraisal forms are not particularly useful. Instead, it is necessary to
recognize that comparisons involve an overall subjective judgment to which
a host of additional facts and impressions must somehow be added. There is
no single form or way to do this.

The best approach appears to be a ranking technique involving pooled

judgment.

The two most effective methods are alternation ranking and paired
comparison ranking.

1.

Alternation ranking:

Ranking of employees from best to worst on a trait or traits is another

method for evaluating employees. Since it is usually easier to distinguish
between the worst and the best employees than to rank them, an alternation
ranking method is most popular. Here subordinates to be rated are listed and
the names of those not well enough to rank are crossed. Then on a form as
shown below, the employee who is highest on the characteristic being
measured and the one who is the lowest are indicated. Then chose the next
highest and the next lowest, alternating between highest and lowest until all
the employees to be rated have been ranked.

2.

Paired-comparison ranking:

This technique is probably just as accurate as alternation ranking and might

be more so. But with large numbers of employees it becomes extremely time
consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings

(i.e., when two or more people are asked to make independent rankings of
the same work group and their lists are averaged), are among the best
available for generating valid order-of-merit rankings for salary
administration purposes.

ASSESSMENT CENTERS
So far, we have been talking about assessing past performance. What about
the assessment of future performance or potential? In any placement
decision and even more so in promotion decisions, some prediction of future
performance is necessary. How can this kind of prediction be made most
validly and most fairly?

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call
360-degree feedback. The feedback is generally used for training and
development, rather than for pay increases.

Most 360 Degree Feedback system contains several common features.

Appropriate parties peers, supervisors, subordinates and customers, for
instance complete survey, questionnaires on an individual. 360 degree
feedback is also known as the multi-rater feedback, whereby ratings are not
given just by the next manager up in the organizational hierarchy, but also
by peers and subordinates. Appropriates customer ratings are also included,
along with the element of self appraisal. Once gathered in, the assessment
from the various quarters are compared with one another and the results
communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO.
Like the critical incident method, it focuses on actual behavior and actual
results, which can be discussed objectively and constructively, with little or
no need for a supervisor to "play God."

Advantages

Instead of assuming traits, the MBO method concentrates on actual

outcomes. If the employee meets or exceeds the set objectives, then he or
she has demonstrated an acceptable level of job performance. Employees
are judged according to real outcomes, and not on their potential for
success, or on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be
observed easily. The MBO method recognizes the fact that it is difficult to
neatly dissect all the complex and varied elements that go to make up
employee performance.

MBO advocates claim that the performance of employees cannot be broken

up into so many constituent parts, but to put all the parts together and the
performance may be directly observed and measured.
Disadvantages

This approach can lead to unrealistic expectations about what can and
cannot be reasonably accomplished. Supervisors and subordinates must
have very good "reality checking" skills to use MBO appraisal methods. They
will need these skills during the initial stage of objective setting, and for the
purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that

fluid objectives may be distorted to disguise or justify failures in
performance.

Benefits of Performance Appraisals

Measures an employees performance.

Helps in clarifying, defining, redefining priorities and objectives.
Motivates the employee through achievement and feedback.
Facilitates assessment and agreement of training needs.
Helps in identification of personal strengths and weaknesses.
Plays an important role in Personal career and succession planning.
Clarifies team roles and facilitates team building.
Plays major role in organizational training needs assessment and analysis.
Improves understanding and relationship between the employee and the
reporting manager and also helps in resolving confusions and
misunderstandings.
Plays an important tool for communicating the organizations philosophies,
values, aims, strategies, priorities, etc among its employees.
Helps in counseling and feedback.
Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and

biases referred to as 'rating errors'. These errors can seriously affect
assessment results. Some of the most common rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes the
assessment subjective. Subjective assessment defeats the very purpose of
performance appraisal. Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated
unfavorably will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to
detriment the relations between the rater and the ratee.

c)
He/She may rate leniently in order to win promotions for the
subordinates and therefore, indirectly increase his/her hold over him.

Central tendency: - This occurs when employees are incorrectly rated near
the average or middle of the scale. The attitude of the rater is to play safe.
This safe playing attitude stems from certain doubts and anxieties, which the
raters have been assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's
performance influences the evaluation of the entire performance of the
individual. The halo error occurs when an employee who works late
constantly might be rated high on productivity and quality of output as well
ax on motivation. Similarly, an attractive or popular personality might be
given a high overall rating. Rating employees separately on each of the
performance measures and encouraging raters to guard against the halo
effect are the two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively

high or low score are given only to certain individuals or groups based on the
rater's attitude towards them and not on actual outcomes or behaviors; sex,
age, race and friendship biases are examples of this type of error.

Primacy and Regency effects: - The rater's rating is heavily influenced either
by behavior exhibited by the ratee during his early stage of the review period
(primacy) or by the outcomes, or behavior exhibited by the ratee near the
end of the review period (regency). For example, if a salesperson captures an
important contract/sale just before the completion of the appraisal, the
timing of the incident may inflate his or her standing, even though the
overall performance of the sales person may not have been encouraging.
One way of guarding against such an error is to ask the rater to consider the
composite performance of the rate and not to be influenced by one incident
or an achievement.

Performance dimension order: - Two or more dimensions on a performance

instrument follow each other and both describe or rotate to a similar quality.
The rater rates the first dimensions accurately and then rates the second
dimension to the first because of the proximity. If the dimensions had been
arranged in a significantly different order, the ratings might have been
different.

Spillover effect: - This refers lo allowing past performance appraisal rating lo

unjustifiably influence current ratings. Past ratings, good or bad, result in
similar rating for current period although the demonstrated behavior docs
not deserve the rating, good or bad.

ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager

Provide feedback to the reviewer / HOD on the employees behavioral

traits indicated in the PMS Policy Manual

Ensures that employee is aware of the normalization / performance

appraisal process

Address employee concerns / queries on performance rating, in

consultation with the reviewer

b) Reviewer (Reporting Managers Reporting Manager)

Discuss with the reporting managers on the behavioral traits of all the
employees for whom he / she is the reviewer

Where required, independently assess employees for the said

behavioral traits; such assessments might require collecting data directly
from other relevant employees

c)

HOD (In some cases, a reviewer may not be a HOD)

Presents the proposed Performance Rating for every employee of his /

her function to the Normalization committee.

HOD also plays the role of a normalization committee member

Owns the performance rating of every employee in the department

d) HR Head

Secretary to the normalization committee

Assists HODs / Reporting Managers in communicating the performance

rating of all the employees

e) Normalization Committee

Decides on the final bell curve for each function in the respective
Business Unit / Circle

Reviews the performance ratings proposed by the HODs, specifically on

the upward / downward shift in ratings, to ensure an unbiased relative
ranking of employees on overall performance, and thus finalize the
performance rating of each employee

PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC)

Performs consistently and substantially above expectations in all areas

Achieves a final score greater than or equal to 115%

Consistently delivers on stretch targets

Is proactive

Spots and anticipates problems, implements solutions

Sees and exploits opportunities

Delivers ahead of time

Sees the wider picture-impacts across business

Focuses on whats good for the business

Seen as role model by others

Recognized as exceptional by other functions as well

Motivates others to solve problems

Develops others

Provides open and honest feedback

Able to establish and lead cross-functional teams

SIGNIFICANT CONTRIBUTOR (SC)

Performs above expectations in all areas

Achieves final score between 100-114%

Versatile in his/ her area of operation

Develops creative solutions and require little / minimal supervision

Sets examples for others

Take ownership of own development

Coaches others

Demonstrates business initiative

Is self motivated

Supportive team player

Leads own team very effectively

Demonstrate functional initiative

RECRUITMENT

According to Edwin Flippo, "Recruitment is the process of searching for

prospective employees and stimulating them to apply for jobs in the
Organisation."
Recruitment is a continuous process whereby the firm attempts to develop a
pool of qualified applicants for the future human resources needs even
though specific vacancies do not exist. Usually, the recruitment process
starts when a manger initiates an employee requisition for a specific vacancy
or an anticipated vacancy.
It is the process to discover sources of manpower to meet the requirement of
staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an
efficient working force.
Recruitment of candidates is the function preceding the selection, which
helps create a pool of prospective employees for the organisation so that the
management can select the right candidate for the right job from this pool.
The main objective of the recruitment process is to expedite the selection
process.
Recruitment is almost central to any management process and failure in
recruitment can create difficulties for any company including an adverse
effect on its profitability and inappropriate levels of staffing or skills.
Inadequate recruitment can lead to labor shortages, or problems in

management decision making and the recruitment process could itself be

improved by following management theories. The recruitment process could
be improved in sophistication with Rodgers seven point plan, Munro-Frasers
five-fold grading system, psychological tests, personal interviews, etc.
Recommendations for specific and differentiated selection systems for
different professions and specializations have been given. A new national
selection system for psychiatrists, anesthetists and dental surgeons has
been proposed within the UK health sector

Need for Recruitment

The need for recruitment may be due to the following reasons / situations
Vacancies: due to promotions, transfers, retirement, termination, permanent
disability, death and labour turnover.
Creation of new vacancies: due to growth, expansion and diversification of
business activities of an enterprise.
In addition, new vacancies are possible due to job respecification.
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the strategic advantage for the organisations.
Recruitment process involves a systematic procedure from sourcing the
candidates to arranging and conducting the interviews and requires many
resources and time. A general recruitment process is as follows:
Identifying the vacancy:
The recruitment process begins with the human resource department
receiving requisitions for recruitment from any department of the company.
These contain:
Posts to be filled
Number of persons
Duties to be performed

 Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type of
employees (Advertising etc).
Short-listing and identifying the prospective employee with required
characteristics.
Arranging the interviews with the selected candidates.
Conducting the interview and decision making

The HR Role in Recruitment changed and HRM:

Decides about the design of the recruitment processes and to decide about
the split of roles and responsibilities between Human Resources and Hiring
Manager
Decides about the right profile of the candidate
Decides about the sources of candidates
Decides about the measures to be monitored to measure the success of the
process
A traditional role of HR in Recruitment was an administrative part of the
whole process. The HRM was responsible for maintaining the vacancies
advertised and monitored, but the real impact of HRM to the performance of
the whole recruitment process was minimal.
But as the role of Human Resources in the business was increasing, the HR
Strategy was changed. From making the process working to the real

management of HR Processes and the Recruitment Process was the first to

manage.
The role of HR in Recruitment is very important as HRM is the function to
work on the development of the recruitment process and to make the
process very competitive on the market. As the job market gets more and
more competitive, the clearly defined HR Role in Recruitment will be growing
quickly. HRM is not a function to conduct all the interviews today, the main
role of Human Resources is to make the recruitment process more attractive
and competitive on the job market.

Scope of HR Recruitment:
HR jobs are one of most important tasks in any company or organization.
To structure the Recruitment policy of company for different categories of
employees.
To analyses the recruitment policy of the organization.
To compare the Recruitment policy with general policy.
To provide a systematic recruitment process.
It extends to the whole Organization. It covers corporate office, sites and
works appointments all over India.
It covers workers, Clerical Staff, Officers, Jr. Management, Middle
Management and Senior Management cadres.
A recruitment agency provides you with career counseling which renders a
crystal clear picture of what are the possible career options out there for you
and which job option suits you the best.
Objective of HR

To obtain the number and quality of employees that can be selected in order
to help the organization to achieve its goals and objectives.
Recruitment helps to create a pool of prospective employees for the
organization so that the management can select the right candidate for the
right job from this pool.
Recruitment acts as a link between the employers and the job seekers and
ensures the placement of right candidate at the right place at the right time.
Recruitment serves as the first step in fulfilling the needs of organizations for
a competitive, motivated and flexible human resource that can help achieve
its objectives.
The recruitment process exists as the organization hire new people, who are
aligned with the expectations and they can fit into the organization quickly.
Advantage of Outsourcing Recruitment/Hiring of Consultancy
Traditionally, recruitment is seen as the cost incurring process in an
organization. HR outsourcing helps the HR professionals of the organisations
to concentrate on the strategic functions and processes of human resource
management rather than wasting their efforts, time and money on the
routine work.
Outsourcing the recruitment process helps to cut the recruitment costs to 20
% and also provide economies of scale to the large sized organizations.
The major advantages of outsourcing performance management are:

The advantages accruing to the corporate are:

Turning the management's focus to strategic level processes of HRM
Accessibility to the expertise of the service providers

Freedom from red tape and adhering to strict rules and regulations
Optimal resource utilisation
Structured and fair performance management.
A satisfied and, hence, highly productive employees
Value creation, operational flexibility and competitive advantage
Therefore outsourcing helps both the organisations and the consultancies to
grow and perform better.

Changing Role of Recruitment Intermediaries:

Recruitment consultancies, agencies or intermediaries are witnessing a boom
in the demand of their services, both by the employers and the job seekers.
With an already saturated job market, the recruitment intermediaries have
gained a vital position acting as a link between the job seekers and the
employers.
But at the same time, one of the major threats faced by this industry is the
growing popularity of e-recruitment. With the changing demand,
technologies and the penetration and increasing use of internet, the
recruitment consultancies or the intermediaries are facing tough
competition. To retain and maintain their position in the recruitment market,
the recruitment intermediaries or consultants (as they are commonly known)
are witnessing and incorporating various changes in terms of their role,
functions and the services.
According to a survey amongst top employers, most of them agree with the
growing influence of technology and the Internet on the recruitment
processes. 70 per cent of employers reported the use of application portal on
their companys official website. Apart from that, the emerging popularity of
the job portals is also growing.
But the fact that the intermediaries or the consultants are able to provide
their expert services, economies of scale, up to 40 percent savings in the
recruitment costs, knowledge of the market, the candidates, understanding

of the requirements, and most importantly, the assess to the suitable and
talented candidates and the structured recruitment processes. The
recruitment intermediaries save the organisations from the tedious of
weeding out unsuitable resumes, co-coordinating interviews, posting
vacancies etc. give them an edge over the other sources of recruitment.
To retain their position as the service providers in the recruitment market,
the recruitment intermediaries are providing vale added services to the
organisations. They are incorporating the use of internet and job portals,
making their services more efficient.
Despite of the growing use of the internet, the recruitment intermediaries are
predicted to continue dominating the recruitment market in the anticipated
future.

Recruitment Management System

Recruitment management system is the comprehensive tool to manage the
entire recruitment processes of an organisation. It is one of the technological
tools facilitated by the information management systems to the HR of
organisations. Just like performance management, payroll and other systems,
Recruitment management system helps to contour the recruitment
processes and effectively managing the ROI on recruitment.
The features, functions and major benefits of the recruitment management
system are 4explained below:
Structure and systematically organize the entire recruitment processes.
Recruitment management system facilitates faster, unbiased, accurate and
reliable processing of applications from various applications.
Helps to reduce the time-per-hire and cost-per-hire.

Recruitment management system helps to incorporate and integrate the

various links like the application system on the official website of the
company, the unsolicited applications, outsourcing recruitment, the final
decision making to the main recruitment process.
Recruitment management system maintains an automated active database
of the applicants facilitating the talent management and increasing the
efficiency of the recruitment processes.
Recruitment management system provides and a flexible, automated and
interactive interface between the online application system, the recruitment
department of the company and the job seeker.
Offers tolls and support to enhance productivity, solutions and optimizing the
recruitment processes to ensure improved ROI.
Recruitment management system helps to communicate and create healthy
relationships with the candidates through the entire recruitment process.
The Recruitment Management System (RMS) is an innovative information
system tool which helps to sane the time and costs of the recruiters and
improving the recruitment processes.

HR Challenges in Recruitment
Recruitment is a function that requires business perspective, expertise,
ability to find and match the best potential candidate for the organisation,
diplomacy, marketing skills (as to sell the position to the candidate) and
wisdom to align the recruitment processes for the benefit of the organisation.
The HR professionals handling the recruitment function of the organisationare constantly facing new challenges. The biggest challenge for such
professionals is to source or recruit the best people or potential candidate for
the organisation.
In the last few years, the job market has undergone some fundamental
changes in terms of technologies, sources of recruitment, competition in the
market etc. In an already saturated job market, where the practices like

poaching and raiding are gaining momentum, HR professionals are

constantly facing new challenges in one of their most important functionrecruitment. They have to face and conquer various challenges to find the
best candidates for their organisations.
The major challenges faced by the HR in recruitment are:
Adaptability to globalization The HR professionals are expected and
required to keep in tune with the changing times, i.e. the changes taking
place across the globe. HR should maintain the timeliness of the process
Lack of motivation Recruitment is considered to be a thankless job. Even if
the organisation is achieving results, HR department or professionals are not
thanked for recruiting the right employees and performers.
Process analysis The immediacy and speed of the recruitment process are
the main concerns of the HR in recruitment. The process should be flexible,
adaptive and responsive to the immediate requirements. The recruitment
process should also be cost effective.
Strategic prioritization The emerging new systems are both an opportunity
as well as a challenge for the HR professionals. Therefore, reviewing staffing
needs and prioritizing the tasks to meet the changes in the market has
become a challenge for the recruitment professionals.

Job Satisfaction of Employees - Introduction

Job Satisfaction Theory :

The father of scientific management Taylor's (1911) approach to job

satisfaction was based on a most pragmatic & essentially pessimistic
philosophy that man is motivation by money alone. That the workers are
essentially 'stupid & phlegmatic' & that they would be satisfied with work if
they get higher economic benefit from it. But with the passage of time
Taylor's solely monetary approach has been changed to a more humanistic
approach. It has come a long way from a simple explanation based on money
to a more realistic but complex approach to job satisfaction. New dimensions
of knowledge are added every day & with increasing understanding of new
variables & their inter play, the field of job satisfaction has become difficult
to comprehend.

Employees Job Satisfaction Theory

- By Hoppock : The term employees job satisfaction was brought to limelight

by Hoppock (1935). He reviewed 32 studies on job satisfaction conducted
prior to 1933 & observed that job satisfaction is a combination of
psychological, physiological & environmental circumstances that cause a
person to say. 'I am satisfied with my job'. Locke defines job satisfaction as a
"pleasurable or positive emotional state resulting from the appraisal of one's
job or job experiences". To the extent that a person's job fulfils his dominant
need & is consistent with his expectations & values, the job will be satisfying.
Job Satisfaction - Definition

Job Satisfaction Definition

:One way to define satisfaction may be to say that it is the end state of
feeling. The word 'end' emphasises the fact that the feeling is experienced
after a task is accomplished or an activity has taken place whether it is
highly individualistic effort of writing a book or a collective endeavour of

constructing a building. These activities may be minute or large. But in all

cases, they satisfy a certain need. The feeling could be positive or negative
depending upon whether need is satisfied or not & could be a function of the
effort of the individual on one hand & on the other the situational
opportunities available to him.
This can be better understood by taking example of a foreman in an
engineering industry. He has been assigned the task to complete a special
order by a certain, deadline. Person may experience positive job satisfaction
because he has been chosen to complete the task. It gives him a special
status & feeling that he has been trusted and given a special task, he likes
such kind of rush job and it may get him extra wages. The same could be the
sources of his dissatisfaction if he does not like rush work, has no need for
extra wages. Each one of these variables lead to an end state of feeling,
called satisfaction.
Job Satisfaction of Employees Definition:Sinha (1974) defines employees job
satisfaction an 'a reintegration of affect produced by individual's perception
of fulfillment of his needs in relation to his work & the situations surrounding
it'.
Major Theories of Job Satisfaction

There are 3 major theories of job satisfaction.

(i) Herzberg's Motivation - Hygiene Theory.
(ii) Need Fulfilment Theory.
(iii) Social Reference-Group Theory.

Employees Motivation -

Herzberg's Hygiene Theory : Employees Motivation theory was proposed by

Herzberg & his assistants in 1969. On the basis of his study of 200 engineers

and accountants of the Pittsburgh area in the USA, he established that there
are two separate sets of conditions (and not one) which are responsible for
the motivation & dissatisfaction of workers. When one set of conditions
(called 'motivator') is present in the organisation, workers feel motivated but
its absence does not dissatisfy them. Similarly, when another set of
conditions (called hygiene factors) is absent in the organisation, the workers
feel dissatisfied but its presence does not motivate them. The two sets are
unidirectional, that is, their effect can be seen in one direction only.

According to Herzberg following factors acts as motivators:

Achievement,
Recognition,
Advancement,
Work itself,
Possibility of growth, &
Responsibility.
Hygiene factors are :
Company policy & administration,
Technical supervision,
Inter-personal relations with supervisors, peers & Subordinates,
Salary.
Job security,
Personal life,
Working Conditions, &

 Status.
Herzberg used semi-structured interviews (the method is called critical
incident method). In this technique subjects were asked to describe those
events on the job which had made them extremely satisfied or dissatisfied.
Herzberg found that events which led people to extreme satisfaction were
generally characterised by 'motivators' & those which led people to extreme
dissatisfaction were generally characterized by a totally different set of
factors which were called 'hygiene factors'.
Hygiene factors are those factors which remove pain from the environment.
Hence, they are also known as job - environment or job - context factors.
Motivators are factors which result in psychological growth. They are mostly
job - centered. Hence they are also known as job - content factors.
The theory postulated that motivators and hygiene factors are independent
& absence of one does not mean presence of the other. In pleasant situations
motivators appear more frequently than hygiene factors while their
predominance is reversed in unpleasant situations.
Need Fulfillment Theory :
Under the need-fulfillment theory, it is believed that a person is satisfied if he
gets what he wants & the more he wants something or the more important it
is to him, the more satisfied he is when he gets it & the more dissatisfied he
is when he does not get it. Needs may be need for personal achievement,
social achievement & for influence.

Career Development Need : Desires for career development, improvement in

one's own life standards, better education & prospects for children & desire
for improving one's own work performance.

b) Social Achievement Need : A drive for some kind of collective success is

relation to some standards of excellence. It is indexed in terms of desires to
increase overall productivity, increased national prosperity, better life
community & safety for everyone.

c) Need for influence :

A desire to influence other people & surroundings environment. In the works
situation, it means to have power status & being important as reflected in
initiative taking and participation in decision making.

In summary, this theory tell us that job satisfaction is a function of, or is

positively related to the degree to which one's personal & social needs are
fulfilled in the job situation.

Social References - Group Theory :

It takes into account the point of view & opinions of the group to whom the
individual looks for the guidance. Such groups are defined as the 'referencegroup' for the individual in that they define the way in which he should look
at the world and evaluate various phenomena in the environment (including
himself). It would be predicted, according to this theory that if a job meets
the interest, desires and requirements of a person's reference group, he will
like it & if it does not, he will not like it.
A good example of this theory has been given by C.L. Hulin. He measures the
effects of community characteristics on job satisfaction of female clerical
workers employed in 300 different catalogue order offices. He found that
with job conditions held constant job satisfaction was less among persons
living in a well-to-do neighborhood than among those whose neighborhood
was poor. Hulin, thus provides strong evidence that such frames of reference
for evaluation may be provided by one's social groups and general social
environment.
To sum up, we can say, Job satisfaction is a function of or is positively related
to the degree to which the characteristics of the job meet with approved &
the desires of the group to which the individual looks for guidance in
evaluating the world & defining social reality.

Employees Motivation, Attitude and Job satisfaction Relationship :

Employees Motivation implies the willingness to work or produce. A person

may be talented and equipped with all kinds of abilities & skills but may have
no will to work. Satisfaction, on the other hand, implies a positive emotional
state which may be totally unrelated to productivity. Similarly in the literature
the terms job attitude and job satisfaction are used interchangeably.
However a closer analysis may reveal that perhaps, they measure two
different anchor points. Attitudes are predispositions that make the individual
behave in a characteristic way across the situations.
They are precursors to behaviour & determine its intensity and direction. Job
satisfaction, on the other hand is an end state of feeling which may influence
subsequent behaviour. In this respect, job attitude and job satisfaction may
have something in common. But if we freeze behaviour, attitude would
initiate it which job satisfaction would result from it.

Employees Morale & Job Satisfaction - Relationship :

According to Seashore (1959), Employees Morale is a condition which exists

in a context where people are :
a) motivated towards high productivity.
b) want to remain with organization.
c) act effectively in crisis.
d) accept necessary changes without resentment or resistance.

e) actually promote the interest of the organization and

f) are satisfied with their job.
According to this description of morale, job satisfaction is an important
dimension of morale itself.
Morale is a general attitude of the worker and relates to group while job
satisfaction is an individual feeling which could be caused by a variety of
factors including group. This point has been summarized by Sinha (1974)
when he suggests that industrial morale is a collective phenomenon and job
satisfaction is a distributed one. In other words, job satisfaction refers to a
general attitude towards work by an individual works. On the other hand,
morale is group phenomenon which emerges as a result of adherence to
group goals and confidence in the desirability of these goals.

Job Satisfaction and Work Behaviour Relationship :

Generally, the level of job satisfaction seems to have some relation with
various aspects of work behaviour like absenteeism, adjustments, accidents,
productivity and union recognition. Although several studies have shown
varying degrees of relationship between them and job satisfaction, it is not
quite clear whether these relationships are correlative or casual. In other
words, whether work behaviour make him more positively inclined to his job
and there would be a lesser probability of getting to an unexpected, incorrect
or uncontrolled event in which either his action or the reaction of an object or
person may result in personal injury.

Job satisfaction and Productivity :

Experiments have shown that there is very little positive relationship

between the job satisfaction & job performance of an individual. This is
because the two are caused by quite different factors. Job satisfaction is

closely affected by the amount of rewards that an individual derives from his
job, while his level of performance is closely affected by the basis for
attainment of rewards. An individual is satisfied with his job to the extent
that his job provides him with what he desires, and he performs effectively in
his job to the extent that effective performance leads to the attainment of
what he desires. This means that instead of maximizing satisfaction
generally an organisation should be more concerned about maximizing the
positive relationship between performance and reward. It should be ensured
that the poor performers do not get more rewards than the good performers.
Thus, when a better performer gets more rewards he will naturally feel more
satisfied.

Job Satisfaction and Absenteeism :

One can find a consistent negative relationship between satisfaction and

absenteeism, but the correlation is moderate-usually less than 0.40. While it
certainly makes sense that dissatisfied Sales Persons are more likely to miss
work, other factors have an impact on the relationship and reduce the
correlation coefficient. e.g. Organizations that provide liberal sick leave
benefits are encouraging all their Sales Persons, including those who are
highly satisfied, to take days off. So, outside factors can act to reduce the
correlation.

Job Satisfaction and Turnover :

Job Satisfaction is also negatively related to turnover, but the correlation is

stronger than what we found for absenteeism. Yet, again, other factors such
as labour market conditions, expectations about alternative job

opportunities, and length of tenure with the organization are important

constraints on the actual decision to leave one's current job.
Evidence indicates that an important moderator of the satisfaction-turnover
relationship is the Sales Person's level of performance. Specifically, level of
satisfaction is less important in predicting turnover for superior performers
because the organization typically makes considerable efforts to keep these
people. Just the opposite tends to apply to poor performers. Few attempts
are made by the organization to retain them. So one could expect, therefore,
that job satisfaction is more important in influencing poor performers to stay
than superior performers.

Job Satisfaction and Adjustment :

It the Sales Person is facing problems in general adjustment, it is likely to

affect his work life. Although it is difficult to define adjustment, most
psychologists and organisational behaviourists have been able to narrow it
down to what they call neuroticism and anxiety.
Generally deviation from socially expected behaviour has come to be
identified as neurotic behaviour. Though it may be easy to identify symptoms
of neuroticism, it is very difficult to know what causes. Family tensions, job
tensions, social isolation, emotional stress, fear, anxiety or any such sources
could be a source of neuroticism.
Anxiety, on the other hand, has a little more clearer base. It is generally seen
as a mental state of vague fear and apprehension which influences the mode
of thinking. Anxiety usually shows itself in such mental state as depression,
impulsiveness, excessive worry and nervousness. While everyone aspires for
a perfect state of peace and tranquility, the fact is that some anxiety is
almost necessary for an individual to be effective because it provides the
necessary push for efforts to achieve excellence.
Adjustment problems usually show themselves in the level of job satisfaction.
For long, both theorists and practitioners have been concerned with Sales

Persons' adjustment and have provided vocational guidance and training to

them to minimise it's impact on work behaviour. Most literature, in this area,
generally suggests a positive relationship between adjustment and job
satisfaction. People with lower level of anxiety and low neuroticism have
been found to be more satisfied with their jobs.

Determinants of Job Satisfaction :

According to Abrahan A. Korman, there are two types of variables which

determine the job satisfaction of an individual. These are :

1) Organisational variables ; and

2) Personal Variables.

Organisational Variable :

1) Occupational Level :
The higher the level of the job, the greater is the satisfaction of the
individual. This is because higher level jobs carry greater prestige and self
control.
2) Job Content :
Greater the variation in job content and the less repetitiveness with which
the tasks must be performed, the greater is the satisfaction of the individual
involved.
3) Considerate Leadership :

People like to be treated with consideration. Hence considerate leadership

results in higher job satisfaction than inconsiderate leadership.
4) Pay and Promotional Opportunities :
All other things being equal these two variables are positively related to job
satisfaction.
5) Interaction in the work group :
Here the question is : When is interaction in the work group a source of job
satisfaction and when it is not ? Interaction is most satisfying when (a) It results in the cognition that other person's attitudes are similar to one's
own. Since this permits the ready calculability of the others behaviour and
constitutes a validation of one's self ;
(b) It results in being accepted by others ; and
(c) It facilitates the achievements of goals.

Personal Variables :

For some people, it appears most jobs will be dissatisfying irrespective of the
organisational condition involved, whereas for others, most jobs will be
satisfying. Personal variables like age, educational level, sex, etc. are
responsible for this difference.
(1) Age :
Most of the evidence on the relation between age and job satisfaction,
holding such factors as occupational level constant, seems to indicate that
there is generally a positive relationship between the two variales up to the
pre-retirement years and then there is a sharp decrease in satisfaction. An
individual aspires for better and more prestigious jobs in later years of his
life. Finding his channels for advancement blocked, his satisfaction declines.

(2) Educational Level :

With occupational level held constant there is a negative relationship
between the educational level and job satisfaction. The higher the education,
the higher the reference group which the individual looks to for guidance to
evaluate his job rewards.
(3) Role Perception : Different individuals hold different perceptions about
their role, i.e. the kind of activities and behaviours they should engage in to
perform there job successfully. Job satisfaction is determined by this factor
also. The more accurate the role perception of an individual, the greater his
satisfaction.
(4) Sex :
There is as yet no consistent evidence as to whether women are more
satisfied with their jobs than men, holding such factors as job and
occupational level constant. One might predict this to be the case,
considering the generally low occupational aspiration of women.
Some other determines of job satisfaction are as follows:
(i) General Working Conditions.
(ii) Grievance handling procedure.
(iii) Fair evaluation of work done.
(iv) Job security.
(v) Company prestige.
(vi) Working hours etc.

How Sales Persons Can Express Dissatisfaction

Sales Person dissatisfaction can be expressed in a number of ways. For

example, rather than quit, Sales Persons can complain, be insubordinate,
steal organisational property, or shirk a part of their work responsibilities. In
the following figure, four responses are given along to dimensions :
Constructiveness / Destructiveness and Activity / Passivity. These are defined
as follow :

Exit : Behaviour directed towards leaving the organisation. Includes looking

for a new position as well as resigning.

Voice : Actively and constructively attempting to improve conditions includes

suggesting improvements, discussing problems with superiors, and some
forms of union activity.

Loyalty : Passively but optimistically waiting for conditions to improve.

Includes speaking up for the organisation in the face of external criticism and
trusting the organisation and its management to 'do the right thing'.

Neglect : Passively allowing the conditions to worsen. Includes chronic

absenteeism or lateness, reduced effort, and increased error rate.

Exit and neglect behaviours encompass our performances variablesproductivity, absenteeism and turnover. But this model expands Sales Person
response to include voice and loyalty, constructive behaviours that allow
individuals to tolerate unpleasant situations or to revive satisfactory working
conditions.

The Importance of High Job Satisfaction :

The importance of job satisfaction is obvious. Managers should be concerned

with the level of job satisfaction in their organisations for at least three
reasons:
(1) There is clear evidence that dissatisfied Sales Persons skip work more
often and are more likely to resign ;
(2) It has been demonstrated that satisfied Sales Persons have better health
and live longer ; and
(3) Satisfaction on the job carries over to the Sales Person's life outside the
job.
Satisfied Sales Persons have lower rate of both turnover and absenteeism.
Specifically, satisfaction is strongly and consistently negatively related to an
Sales Person's decision to leave the organisation. Although satisfaction and
absence are also negatively related, conclusions regarding the relationship
should be more guarded.