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St.

Paul University Manila


680 Pedro Gil Malate Manila
(02)524687

Bachelor of Science in Business Administration major in Marketing Management


Bachelor of Science in Entrepreneurship

Entrepreneurship and Cooperative Management

HUMAN RESOURCES MANAGEMENT

Submitted by: Group 9

Chen, Qiqi

De Guzman, Ma. Angelica

Malana, Sydney Rain

Ocampo, Reine Carissima

Submitted to:
Prof. Arthur C. Tria

Date of Submission: August 4, 2016


Table of Contents

I. Definition of Terms

II. Readings

A. Human Resources Management

 Human Resource Management Defined

 Human Resource Planning

 Recruitment

 Sources of Applicants

 Selection

 Training and Development

 Compensating

 Methods of Evaluating Performance

III. References
Definition of Terms

Human resource management - is the process of hiring and developing employees so that they
become more valuable to the organization. It also refers to the productive use of people that is
strategic and coherent in a version of management.

Human resource planning -is the process of ensuring that the management is using its most
valuable assets efficiently to attain its organizational objectives.

Recruitment- is a strategic process of attracting capable applicants for employment.

Sources of Applicant - The searching for suitable candidates and informing them about the
openings in the enterprise is the most important aspect of recruitment process.

Selection- The process of selection should be efficient as possible for the company is defined by the
employees that work in it

Training & Development- the field wherein it concerns itself with the organizational activities that are
aimed to improve the performance of individuals and groups in the organization

Training- focuses on learning the necessary skills required to perform a job

Development- focuses on the preparation needed for the future job or jobs that an individual may
potentially hold in the future and is evaluated against those jobs.

Compensation - A systematic approach providing monetary value in exchange for work


performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.

Performance Management is the systematic process by which an organization involves its


employees, as individuals and members of a group, in improving organizational effectiveness in
the accomplishment of the organization’s mission and goals. In other words, performance
management is a strategic tool used to promote an effective organization.
HUMAN RESOURCE MANAGEMENT
Definition

Human resource management (HRM) is the process of hiring and developing employees so that
they become more valuable to the organization. It also refers to the productive use of people that
is strategic and coherent in a version of management. Human resources, too, is an increasingly
broadening term that refers to the “human capital”. Due to people in an organization having
different values, aspirations, cultural and family background, education, attitude and temper; it
takes a lot of cleverness, skill and people sensitivity to manage this group of human beings. The
key is to be flexible and avoid implementing a “one size fits all” policies because different
people have different needs that the organization must respond to accordingly.

The main purpose of HRM is maximizing the productivity of an organization by sharpening its
employee’s effectiveness. As what Edward L. Gubman observed in the Journal of Business
Strategy, "the basic mission of human resources will always be to acquire, develop, and retain
talent; align the workforce with the business; and be an excellent contributor to the business.
Those three challenges will never change."

Human Resource Planning

Human resource planning is the process of ensuring that the management is using its most
valuable assets efficiently to attain its organizational objectives. Under selective circumstances
there are changing conditions in a certain organization which is why with proper analysis this
ensures that the right people will be in the right job at the right time. HR planning is a definition
of maximum effort when it comes to man power management.

Human Resource Planning Process

The overall human resources planning system should be well thought out, systematic and well
documented. The effectiveness of planning depends on the detail, accuracy and reliability of the
information sources. The process of human resource planning allows businesses of any size to
better understand the human resources available to them, determine what human resources they
will need, decide how to best use the human resources at their disposal, and develop a system to
ensure human resources’ needs are sufficiently covered. Both opportunities and problems that
can affect your HRM plan should be identified. Consider the business environment, upcoming
projects, potential drops in revenue, and anything else that may affect how many employees
you’ll need and be able to hire.
Analyzing Forecasting Planning Implementing

Environmental Human Strategic


Factors Resource Changes
Demand Factors
Organization Employee Process
Direction Development Changes
and
Internal Finance and Operational
Workforce Budget Changes
Supply
External Logistical Evaluation and
Workforce Feedback

Analyzing

The first step in the planning process is to analyze the environmental factors that impact on your
firm’s labour demand. Analyzing the external business environment and its trends must be
understood by the planners to be able to pinpoint possible opportunities and threats to the
organization.

The thrust and direction of the firm must also be carefully thought out. The overall organization
direction and strategy impacts the demand for human resources.

Internal workforce must be analyzed. Strengths and skills of current employees, as well as their
weaknesses must be observed to help planners place each employee in a better position to
achieve their best and avoid problems that might arise when an employee is put into a position
for which he has no aptitude.

Identification of any internal management issues like retention, separation, promotion patterns,
potential area of the workplace that are vulnerable to current or future skill gaps may be factors
that implies for recruitment workforce across the organization.
Forecasting

Forecasting is considering the current and future needs of the organization. Look at the quantity
of employees you will need as well as the job functions they’ll have to perform. Finding a
concrete number is nearly impossible, but estimating projected human resource needs will help
you create a more effective HRM plan. Though forecasting can be subject to certain uncertainties
and inaccuracies this can be minimized by using some scientific methods.

One of the most useful outcomes of this phase is the identification of potential problems or issues
facing your organization. This analysis will be based on the data collected from the information
sources in the analyzing phase. The result of this phase will help to develop the gap analysis and
emergent strategies to manage the future. It involves the identification of any predicted changes
and/or developments that may result from demand and analysis. Business elements may have
varying issues identified based on needs of their organizations. The aim is to create necessary
resources/strategies to optimize the future position of organization.

Planning

Analyze the human resources you have available. Look at the strengths and skills of current
employees, as well as their weaknesses. This will help you to better place each employee in a
position to achieve their best and avoid problems that might arise when an employee is put into a
position for which he has no aptitude. Consider your business environment, space and company
culture as well to see how you can best use all of the available resources you have on hand.

Implementing

Create a plan to mesh the demand for human resources with the human resources you have
available. If the demand is greater than the supply, you’ll need to determine how to fill that gap
and find the additional resources you need. This may mean authorizing overtime hours, using
contract or temporary workers, or hiring new employees. If you have more employees than you
need, you’ll have to look for options to help you reduce the workforce in some way. This might
involve early retirements, layoffs or even terminations.

Recruitment

Recruitment is a strategic process of attracting capable applicants for employment. It is a critical


process in every organization’s HR department because failing to attract the best qualified people
will lead to failure in meeting its corporate objectives. The result of the recruitment will directly
impact several areas of the organization including morale, motivation, retention, quality of
products and services of the organization and relationship with customers.

Stages of Recruitment

Identify Vacancy
Prepare Job Description and person Specification
Advertise
Managing the Response
Short-listing
Arrange Interviews
Conduct the Interviews
Conduct The Interview
Reference/Background Checks
Convey The Decision
Offer
Appointment Action

Identify Vacancy

A vacancy may occur in two ways:

1. When an employee resigns, retires, dies, or discharged from the service


2. When a new position is created as a result of expansion, restructuring or reorganization

Prepare Job Description & Person Identification

A job description describes the major areas of an employee's job or position. A good job description
begins with a careful analysis of the important facts about a job, such as the individual tasks involved, the
methods used to complete the tasks, the purpose and responsibilities of the job, the relationship of the job to
other jobs, and the qualifications needed for the job. Putting together the Person Specification enables the
employer to profile the ideal person to fill the job. It is important that the skills, experience and knowledge
included are absolutely relevant to the needs of the job.
Key areas:

 skills and knowledge


 necessary experience
 competence level
 education & training
 personal qualities
 circumstances

Advertise

The size of the company, the importance of the position, the urgency, budgetary constraints, and
media announcement would differentiate the path of media announcement or advertising of vacant positions.
Most common means are through:

 Bulletin boards
 Word of mouth
 Professional journals (PMAP’s People Magazine, etc.)
 Employment agencies, head hunters
 Campus recruitment
 Website job market
 Job fairs
 Newspaper advertisements
 Summer cadre training

Managing Response

Announcements of vacancies through bulletin boards or by word of mouth are the easiest means of
inviting interested parties. You should specify both job and person description for the job in order to
discourage those whom are not qualified to apply.

Short-listing

Discarding those who aren’t qualified and those who doesn’t meet the basic requirements should not
take-up most of your time. After short-listing, it may be the appropriate time to do reference and background
checks. You may still be able to lessen the list by casting aside those who had negative results in the reference
and background check.
Arrange Interviews

Once applicants have been screened and individuals to be considered are identified, interviews should
be arranged with those candidates. The following steps may be observed:

 Arrange and confirm dates and times with candidates


 Develop the interview schedule
 Provide interviewers with a job description and person specification
 Ensure all interviewers are trained
 Develop an evaluation tool
 Conducting the interview

References/Background Checks

Reference and background checks should only be made for Candidates who have advanced to the
finalist stage and who are under serious consideration for the job. The company must inform the candidates of
intention to conduct reference and background check; this will protect the organization from later charges of
invasion of their privacy.

Offer to Hire

Once the candidate is chosen, the job will be offered to him. Important issues that should
be addressed in the job offer are:

 Starting pay, salary progression


 Starting date
 Tenure of the contract (whether temporary, casual, for fixed term or period, probationary
or regular)
 Benefits

Candidates should be given time to either accept or reject the offer.

Sources of Applicant

The searching for suitable candidates and informing them about the openings in the
enterprise is the most important aspect of recruitment process. In order to lead the market,
organization must have competent, experienced and dedicated employees. For this, human
resource management should conduct at least two important functions as getting right man at
right job and improving skills and competencies of employees. Basically, there are two important
sources of recruitment namely internal source and external source.

a. The Internal Search

Group of employees which already exist in organization is internal source of


recruitment. Most of organization depends on internal source for fulfilling new or
vacant position. They can fulfil the requirement by upgrading, promotion, posting
and transfer of qualified employees of organization. In order to facilitate in
finding the appropriate candidates, human resource management takes human
resource inventory as reference. After finding appropriate candidates, they are
encouraged to apply for such position. Some common sources of internal
recruitment are:

 Promotion
Promotion is the vertical advancement or up gradation in organizational
hierarchy. This is one of the most valuable rewards to the most capable
employees. Succession planning prepares suitable employees for the
higher order responsibility with higher order authority. From among the
employees working in the organization, higher post can be fulfilled.
Promotion becomes source of motivation of employees.
.
 Job rotation
Under job rotation, employees are shifted from one job responsibility to
another responsibility. For example, employees working marketing
department will be transfer to human resource department. If the
employees require developing overall skills, job rotation becomes fruitful.
 Employee referrals
Under this source, supervisors nominate best performer for the post. This
method of nomination of one employee from another department is called
employee referral. This method is different than job rotation in the sense
that in job rotation employee get shift from one depart to another at certain
interval but in employee referral, only recommended employee will be
transferred.
 Rehire
Employees who have left the organization at past can be another source of
recruitment. Because of downsizing of organization, re-engineering of
organization or compulsory retirement some employee need to leave
organization temporarily or permanently. Such employees become
familiar with organizational structure, style, culture and system. They
possess required skills and experience. So, rehiring becomes more
appropriate source of recruitment.
 Human resource inventory
Human resource inventory is the summary record of skills, experience,
qualification and number of employees currently and previously working
in the organization. This report provides the information regarding the
surplus, deficit or balance of skills or qualifications. This serves as
important document for human resource planning.

b. External Searches
Group of potential candidates available out of organization is the external source of
recruitment. For the lower level entry or level employees, candidates are recruited from
external sources. Application forms are invited to fulfil the posts through different media
like newspapers, journal, websites, or educational institutions. Some important sources of
recruitment are described as below:
 Employment exchange:
Government run employment exchange agencies can be a good source of
recruitment. Such agencies maintain database of vacancies from
employers and potential candidates. Such agencies provide the
information of genuine candidates to organization. Organizations can
precede recruitment process with information provided by such agencies.
 Education institutions:
Educational institutions like universities, colleges or training institutions
providing skills oriented education. Organization visits to the concerned
person of those institutions and ask the genuine students fit for the post.
Internee of different educational programme is the good source of
recruitment.

 Professional associations:
Professional associations of various professionals like engineers, doctors,
managers, lawyers, accounts, etc. can provide potential candidates for
organizations. Such associations work for improving skills and
maintaining uniformity at work output and procedure.
 Trade unions:
Employees of organization establish their union for their welfare. Trade
unions influence to the management in different ways like in
compensation management, employee recruitment and selection.
 HR agencies:
HR agencies are the organizations that provide training, and work for
recruitment and selection of employees for organizations. They collect
information of potential candidates through different ways like manual
forms or forms in websites. Such organizations facilitate organizations by
providing information of suitable candidates for recruitment and
organizations conduct selection process. And they sometimes provide
employees after conducting selection procedure by themselves.

SELECTION

Recruitment is a function of attracting the best possible candidate to fill up a vacant position and
the hardest part of this is selecting among the best. The process of selection should be efficient as
possible for the company is defined by the employees that work in it. Businesses that are
constantly successful have leaders that focus intensely and relentlessly on people selection. Next
to planning, Workforce is the most important factor when it comes to business therefore it must
be given proper attention and guidance.

As a prerequisite in choosing the right people for the right job, one must have precise ideas about
what the job requires and what kind of people do you expect to hire. The selection process covers
the following:
 Screening applications and resumes
 Conducting testing of the applicants
 Interviewing
 Performing reference background
 Deciding whether to hire

APPLICATIONS AND RESUME

The application letter is the common starting point in the selection process. Inside the application
is the bio-data which entails to the applicants education history, career interest and goals though
those are the most common aspects of a bio-data it does not limit it to that alone and unless the
applicant is a fresh college graduate the resume includes work experience as well. The
Philippines also follow the pattern of western countries as they also ask questions about age,
gender, marital status, number of children, race and religion . Though they are essentially
considered as non-job related it gives the employer a good outlook of the applicant which may
help them weigh the pros and cons of hiring him/her.

CONDUCTING TESTS OF APPLICANTS

There are several reasons in which why conducting tests should be considered with caution:

1. They are just one of the tools in the selection; they should not be the sole basis of
selecting the best candidate.
2. Some tests need to be validated by interview, reference and/or background checks
3. Some tests need interpretation by qualified psychometricians.
4. Ethics must be observed in the utilization of these tests
5. Some tests may be “culture bias”

Types of Tests:

o Ability Test- measure an individual’s ability, mental, or physical skills level. This is used
so that the employers may know how capable the applicant is “work-wise”.
o Aptitude Test- determines whether somebody is likely able to develop the skills required
for a specific kind of work. A company grows when their employees grow; therefore the
ability to learn is essential.
o Performance Test- determines how able is the applicant to actually perform the job that
he/she is applying for. This is show how fit the applicant is for the job.
o Personality Test- describes the aspects of a person’s character that she lives as and brings
to work as well. This is to ensure that the company is not hiring somebody that has a
personality disorder which can be manifested at work and create a dysfunctional
organization.
o Honesty or Integrity Tests- to show a person’s inclination to theft and disruptive
behaviour. used for fiduciary responsibilities.

THE INTERVIEW

This is the cornerstone of the selection process. Getting to know the applicant beyond the stacks
of papers he/she has answered and submitted. One must be trained to do an interview so that the
company will have properly examined and observed fresh hires.

In an interview there 3 basic objectives:

1. To elicit information
2. To observe and record behaviour
3. To evaluate information received and behaviour observed

There are also several stages in a purposeful and result-oriented interview:

o Preparing for the interview


 Place must be private to avoid interruptions
o Making a friend
 To make the applicant relax and open
 Gain the trust of your applicant
o Eliciting information
 Ask open-ended questions
 Questions about feelings allow show how the candidate would react to failure
 Take down highlights of the interview, be sensitive and cautious
 Time constraint: 30 minutes to 1 hour
o Observing behaviour
 2 skills: Hard (physical ability) and Soft (behaviour)
 Body language
o Concluding the interview
 Checking of notes
 Do not give feedback to the interviewee
o Evaluating results of the interview
 Evaluation must be done immediately after the interview.
 The results of the interview must be evaluated against a certain criteria.
TRAINING AND DEVELOPMENT

This is the field wherein it concerns it with the organizational activities that are aimed to improve
the performance of individuals and groups in the organization. The essence of training is to make
employees grow and perform better in the company. Though training and development sound
noticeably similar they have slightly different needs.

Training- focuses on learning the necessary skills required to perform a job.

Development- focuses on the preparation needed for the future job or jobs that an individual may
potentially hold in the future and is evaluated against those jobs.

Both cases are needed in company growth and improvement and therefore they are necessary in
the changing times making industries competitive and challenging.

REASONS FOR EMPLOYEE TRAINING AND DEVELOPMENT

1. When a performance appraisal indicates performance improvement.


2. To “benchmark” the status of improvement so far in a performance improvement effort.
3. As part of an overall professional development program.
4. As a part of succession planning; to make an employee more eligible for a position in the
organization.
5. To “pilot” or test the operation of a new performance management system.
6. To train about a specific topic.
 Human relations
 Computer skills
 Customer service
 Etc.

BENEFITS FROM EMPLOYEE TRAINING AND DEVELOPMENT

o Increase in …
 Job satisfaction and morale
 Employee motivation
 Effectiveness in processes, resulting in financial gain
 Capacity to adopt to new technologies and methods
 Innovation in strategies and products
o Reduced employee turnover
o Enhanced company image (customer service training)
o Improved risk management and ethical behaviour in businesses

CAVEAT ON TRAINING

Training and development must not be seen as the answer to all the problems of the industry.
Some problems might be found in the systematic or physical resources in origin. If there is lack
of materials or equipment no matter how efficient your employees are the company will cease to
improve and rise above the ranks.

THE FOUR STAGE TRAINING CYCLE

1. Training Needs Analysis (TNA) - this systematic assessment of the organization, the task
and the employees. The overall corporate strategy is the center point for the assessment
of the company’s training needs. The needs are explored within the context of the firm’s
goals and strategies.
 Organization Analysis- what are the strategies and goals?
 Task Analysis- in what do they need training?
 Person Analysis- who needs training?

Other issues on TNA:

o Ensuring employees’ readiness for training


 Ability
 Attitudes
 Beliefs
 Motivation
o Creating a learning environment
 Show the benefits of training
 Managers should be models
 Time off to join the training
 Social support
o Ensuring transfer of training
 Application of abilities
 Constant practice
 Have opportunities to use new skills
2. Planning the Training – having a plan to follow through makes the process of
transferring information and skills easier and less confusing. A proper plan would also
consider documentation, space, appropriate instructors and funding and not just the
transfer of information.

Other issues in Planning the Training:

o On-the-job or off-the job?


o Done by the company or outsourced to a training provider?
o Inside the company or outside?
o What kinds of training methods should be used?
3. Implementing the Training- this is to put a training program into effect according to
definitive plan or procedure. “it’s easier said than done” this reminds us that to
implement a plan it also takes a certain process, if not followed correctly the plan would
fall apart and lead to a failure in the whole training program.
Training implementation can be segregated into two segments:
 Practical Administrative Arrangements
 Staff support- accommodating?
 Course content-free flowing, no dull moment
 Equipment- is it enough?
 Facilities- Comfortable?
 Carrying Out the Training
 Trainer must be mentally and physically prepared
 Give overview
o Topics to be covered
o Kinds of training activities
o Time schedules
o Setting group norms
o Housekeeping arrangements
o Flow of the program
o How questions will be encouraged and responded
 Establishing rapport with participants
o Greeting participants and using “ice-breakers”
o Encouraging informal conversations
o Calling them by their first names
o Listening to trainee’s comments and opinions
o Starting sessions promptly at the scheduled time
o Using familiar examples
o Varying the instructional techniques
o Using alternative approaches if one seems to bog
down
4. Evaluating the Training- the training does not end with just the program. One must see
that the training was truly effective to trainees and asking for feedback is one of the
easiest aspects to consider, it can also be useful to the future planning of training
sessions.
Outside of the trainees’ reactions which are called “affective” outcomes results
are evaluated on the following criteria:
 Learning that occurred- testing of abilities to see if they have
mastered what was taught in the program.
 Behavior changes- see if the trainees have applied what they’ve
learned. This can be assessed with the help of an immediate
supervisor.
 Impact on corporate objectives- improvement in a
corporate/industry level. Has the quality of work changed?

MANAGEMENT AND CAREER DEVELOPMENT

As mentioned, a company’s success relies on its employees and a large amount of these success
strivers are from the managerial side of the firm. The industry must not only retain them inside
the company as an asset but they must also develop them so that with their enhanced abilities the
firm may have a chance to be prominently competitive and unique. To reach this goal, the
management team is often encouraged to train in decision making, leadership, motivating
employees, communication and so on. On-the-job training is also important even if the managers
are often taught in a classroom setting. With the mix of physical and mental training managers
are likely to be able to broaden their knowledge, skills, competencies and abilities that will
rightly affect the firm’s progress.

Compensating

Compensation
- A systematic approach providing monetary value in exchange for work performed.
Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.

There are four kinds of employee compensation:

Salary or wage – is the basic compensation.


Terms defined:
Salary – commonly refers to the compensation covering weekly, monthly, or yearly
periods for service rendered. Salary applies to the pay of higher level of personnel
such as white-collar employees or persons in positions of responsibility and authority
in the firm.

Wages – refers to compensation of manual labor-skilled or unskilled for work done


by so-called “blue collar” workers. Wages are measured by the hour, day, or week,
unlike salaries which are paid at stated intervals, such as every week or every fifteen
days.

Incentive Pay – is designed to encourage the employee to render extra effort over
normal production.
o Commissions
o Overtime Pay
o Stock Options
o Bonuses, Profit sharing, Merit Pay

Allowance – are given to meet employee needs during temporary situations.


o Travel / meal / housing allowance

Benefits – are rewards for belonging to an organization.


o Benefits including: dental, insurance, medical, vacation, leaves, retirement,
taxes.

Methods of Evaluating Performance

Performance Management is the systematic process by which an organization involves its


employees, as individuals and members of a group, in improving organizational effectiveness in
the accomplishment of the organization’s mission and goals. In other words, performance
management is a strategic tool used to promote an effective organization.

Performance planning process:

PLANNING – MONITORING – DEVELOPING – RATING – REWARDING

Methods/Approach of Evaluating Performance

There are various approaches in evaluating performance. The most common are the following:
1. Comparative Approach – it is an approach that consists of techniques that require the
rater to compare one individual against those other employees.

The techniques are categorized into three:

 Ranking – The manager simply rank the employees from highest to the lowest or from
the best to the worst.
 Forced distribution – Employee’s performance is ranked in groups. Companies usually
done this approach at the initial stage of their performance appraisal system to avoid
frequent change of ratings especially on the high side.
 Paired Comparison – Also known as pair wise comparison, it is the process of
comparing entities in pairs to judge which of each pair is preferred or has a highest
performance. This method takes a lot of time for manager because of the number of
employees reporting to him.

2. Attribute Approach – An approach that employees have certain traits or attributes


believed to be desirable for the organization’s success. It identifies and defines such traits
as leadership, initiative, maturity, competitiveness, interpersonal skills, creativity,
problem solving, and communication and evaluates employees on them.

 Graphic rating scale – The rate with the provided list of traits with a number of different
points which he/she will simply place a check mark.
 Mixed standard scale – It defines relevant performance standards dimensions, and then
develops statements representing good, average, poor performance along each dimension.
Use the scale of 5 (Poor, adequate, commendable, excellent, distinguished) or of 3 (High,
medium, low) employees are rated against these attributes.

3. Behavioral Approach – This approach identifies and defines behaviors of employees


that employees may exhibit to be effective on the job.

There are five techniques:

 Critical Incidents – It requires managers to log specific incidents as specific examples of


what is effective and ineffective performance of employees.
 Behaviorally – Anchored Rating Scales (BARS) – It is a method that aims to combine
the benefits of narratives, critical incidents and qualified scale with specific narrative
example of good or poor performance.
 Behavioral Observation Scales (BOS) – This method is a variation of the BARS. It
differs because rather than assessing which behavior best reflects an individual
performance, it requires managers to rate the frequency with which the employee has
exhibited each behavior during the rating period.
 Organizational Behavior Modification (OBM) – Refers mainly to techniques for
increasing adaptive behavior through reinforcement and decreasing maladaptive behavior
through punishment. It provides specific feedback to employees about their expected
performance.

4. Results Approach – It is premised on the assumption that subjective rating can be


eliminated from the measurement process and that results are the closest indicator of
one’s contribution to organizational effectiveness.

There are two systems:

 Management by Objectives (MBO) – The term “MBO” was first popularized by Peter
Drucker in his book “The practice of management.” It is a process of agreeing upon
objectives within an organization so that management and employees agree to the
objectives and understand what they are in the organization. The focus is on the future
rather than on the past. Goals and standards are set for performance for the future with
periodic reviews and feedback.
 Productivity Measurement and Evaluation System (PROMES) – Its main goal is to
motivate employees to higher levels of productivity. Productivity measurement is a
required management tool in evaluating and monitoring performance of a business
organization.

5. Quality Approach – This approach major focus of performance evaluation should be


provide employees with feedback on areas which they can improve instead of rating
negatively the employees on outcomes that are beyond their control. This approach relies
heavily on system- oriented focus while on traditional performance appraisal systems
focus more on individual employee performance.