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Q# 01.

Sol:

Human Resource Management (HRM) is a branch of management; that is concerned with


making best possible use of the enterprise’s human resources, by providing better working
conditions, to the employees. It involves those activities that arrange and coordinates the
human resources of an entity. Further, it aims at maintaining good relations at various levels of
management.

For example, for recruitments in public sector organizations in Pakistan, there are 95% chances
that recruitment test will be taken by private testing companies and then interviews will be
conducted of passed candidates. While only 5% private organizations take tests of candidates
through these testing companies, otherwise the HR department shortlists the candidates and
mostly takes their interviews directly.

On the other extreme, Human Resource Development (HRD) is a wing of HRM that keeps
focusing on the growth and development part of the organization’s manpower. There are many
people, to whom HRM and HRD convey the same meaning, but this is not true. We have
compiled an article here, to make you understand the differences between HRM and HRD. Have
a look.

For example, most of the public sector organizations have no concept of training and
development of employees but each and every well reputed organization must focus on
training and development of employees for the growth of their organization.

Definition of HRM

Human Resource Management, shortly known as HRM refers to a systematic branch of


management that is concerned with managing people at work so that they can give best results
to the organization. It is the application of management principles to the people working in the
organization. It aims at improving the performance and productivity of the organization by
finding out the effectiveness of its human capital. Therefore, HRM is an art of placing the right
person at the right job, to ensure the best possible use of organization’s manpower.

The process involves an array of activities that begins with the recruitment, selection,
orientation, & induction, training & development, performance appraisal, incentives &
compensation, motivation, maintaining workplace safety, health & welfare policies, managing
relationship with the organization, managing change.

Definition of HRD

The term Human Resource Development or HRD refers to the development of people working
in an organization. It is a part of HRM; that aims at improving skills, knowledge, competencies,
attitude and behavior of employees of the organization. The purpose of the HRD is to empower
and strengthen the abilities of the employees so that their performance will get better than
before.

Human Resource Development involves providing such opportunities to the employees that will
prove beneficial in their all-around development. Such opportunities include training &
development, career development, performance management, talent management, coaching &
mentoring, key employee identification, succession planning and so on. Nowadays, there are
many organization’s work for the human resource development of employees from the day
they join the enterprise, and the process continues, until the end of their employment term.
Comparison Chart

BASIS FOR
HRM HRD
COMPARISON

Meaning Human Resource Management Human Resource Development


refers to the application of means a continuous development
principles of management to function that intends to improve the
manage the people working in the performance of people working in the
organization. organization.

What is it? Management function. Subset of Human Resource


Management.

Function Reactive Proactive

Objective To improve the performance of To develop the skills, knowledge and


the employees. competency of employees.

Process Routine Ongoing

Dependency Independent It is a subsystem.

Concerned with People only Development of the entire


organization.
Key Differences between HRM and HRD

The significant differences between HRM and HRD are discussed in the following points:

1. Human Resource Management refers to the application of principles of management to


manage the people working in the organization. Human  Resource Development means
a continuous development function that intends to improve the performance of people
working in the organization.

2. HRM is a function of management. Conversely, HRD falls under the umbrella of HRM.

3. HRM is a reactive function as it attempts to fulfill the demands that arise while HRD is a
proactive function, that meets the changing demands of the human resource in the
organization and anticipates it.

4. HRM is a routine process and a function of administration. On the other hand, HRD is an
ongoing process.

5. The basic objective of HRM is to improve the efficiency of employees. In contrast to


HRD, which aims at developing the skill, knowledge and competency of workers and the
entire organization.

6. HRD is an organizationally oriented process; that is a subsystem of a big system. As


opposed to HRM where there are separate roles to play, which makes it an independent
function.

7. Human Resource Management is concerned with people only. Unlike Human Resource
Development, that focus on the development of the entire organization.
Q# 2

Sol:

Performance Appraisal implies a rational assessment of the performance of an individual,


based on pre-determined standards. On the other hand, performance management alludes to
the management of performance of the manpower working in an organization.
While Performance Appraisal is a yearly system while if we talk about Performance
Management, it is a continuous process that does not occur eventually.

Definition of Performance Appraisal

Performance Appraisal is defined as an assessment of employees by the manager, in which


he/she evaluates the overall contribution made by the employee to the organization. It is a
systematic and logical review, conducted by the organization annually to judge his potential in
performing a task. It helps to analyze the skills and abilities of an employee for their future
growth that increases the productivity of employees. It helps to identify, the employee
who performs their task well and those who are not, along with the reasons for the same.

Performance Appraisal is an organized way of evaluating employee performance, for which a


comparison is made between actual performance and the preset standards. The results of the
performance appraisal are documented. After that reviews are given to the employee about
their performance during the year, to tell them where they require improvements. Employees
also wish to know their position in the organization after a particular period of time.
Definition of Performance Management

Performance Management is a continuous process that aims at planning, monitoring and


evaluating the objectives of an employee and his total contribution to the organization. The
basic purpose of performance management is to encourage and improve employee’s efficiency
and effectiveness.

In this process, both the employees and the managers participate in setting the objectives,
assessing the performance or progress, providing training and feedback to the employees at
regular intervals for improvement, implementing development programs for employees and
rewarding them for their achievements.

With the help of this process, both the employee and the employer get a chance to set the
combined goals of the employee that relates to the ultimate goal of the organization by
considering the employee’s performance. In this way, the objectives of the parties became clear
that helps to achieve the overall objectives of the organization and the growth & development
of the employee as well.

Comparison Chart

BASIS FOR
PERFORMANCE APPRAISAL PERFORMANCE MANAGEMENT
COMPARISON

Meaning Performance Appraisal, means the Performance Management is


analysis of an employee's performance the management of human
and their caliber for future growth and resources in an organization.
development.

What is it? It is a system. It is a process.


BASIS FOR
PERFORMANCE APPRAISAL PERFORMANCE MANAGEMENT
COMPARISON

Nature Rigid Supple

Type of tool Operational Tool Strategic Tool

Owned by Human Resource Department Managers

Conducted Annually Continuously

Approach Individualistic Holistic

Focused on Quantitative Aspects Qualitative Aspects

Corrections Retrospective Prospective

Key Differences between Performance Appraisal and Performance Management

The following are the major differences between performance appraisal and performance
management:
1. An organized way of evaluating the performance and potential of employees for their
future growth and development is known as Performance  Appraisal. The complete
process of managing the human resources of the organization is known as Performance
Management.

2. Performance Appraisal is a system while Performance Management is a process.

3. Performance appraisal is inflexible, but performance management is flexible.

4. Performance Appraisal is an operational tool to improve the efficiency of employees.


However, performance management is a strategic tool.

5. Performance Appraisal is conducted by a human resource department of the


organization, whereas managers are held responsible for performance management.

6. In performance appraisal, corrections are made retrospectively. In contrast to


performance management is forward looking.

7. Performance Appraisal has an individualistic approach which is just opposite in the case
of Performance Management.

8. Performance Appraisal is carried on eventually, but Performance Management is an


ongoing process.

Performance Management in Pakistan

Performance management system of the Civil Service of Pakistan at both Federal and Provincial
level has certain strengths including; thoroughness, comprehensiveness, disciplined tool for
promotion and accountability etc. However, the system also suffers from political meddling,
extraneous factors, lack of quantification and standardization that hinder the effective
functioning of the system. The paper suggests useful policy recommendations and reform
measures towards improving the system in this direction.
Performance Appraisal in Pakistan

Effectiveness of Performance Appraisal System: A Proposed Model with Empirical Evidence


from the Government Employees of Punjab, Pakistan The main purpose of the current study
was to evaluate the effectiveness of performance appraisal system used for government
employees in school education department of Punjab, Pakistan and to propose a model of
performance appraisal that highlights the importance of leader-member exchange in
determining performance appraisal reactions (performance appraisal fairness and performance
appraisal satisfaction). This study is grounded in the concepts extracted from, but not limited
to, social exchange theory by Homans (1958), leader-member exchange theory by Graen and
Uhl-Bien, (1995) and organizational justice theory by Greenberg (1987). The proposed model
posits that leader-member exchange influences performance appraisal reactions which in turn
influence the effectiveness of performance appraisal system. Thus, performance appraisal
reactions are believed to mediate the influence of leader-member exchange on effectiveness of
performance appraisal system. The study was a cross sectional quantitative study in which
survey approach was used for data collection. The data were collected through closed ended
questionnaires to elicit the perceptions of dyad: 557 principals (raters) and 557 teachers
(ratees) using the proportionate random sampling. The study concluded that according to
ratees’ perceptions, effectiveness of performance appraisal system is dependent on leader-
member exchange. Moreover, performance appraisal reactions link the levels of leader-
member exchange and effectiveness of performance appraisal system. The conclusion drawn in
this study was confirmed by taking aggregated leader-member exchange and found that
effectiveness of performance appraisal system is dependent on the level of aggregated leader-
member exchange. The present study contributes greatly in the field of appraisal research in
that it is an attempt to develop a comprehensive model to measure the effectiveness of
performance appraisal considering the social context of performance appraisal and appraisal
reactions. The researcher has used the two levels of analysis to get the clear picture of leader-
member exchange through ratees’ and aggregated perceptions of ratees and raters. Hence, the
concerned authorities can pay more attention to developing a more comprehensive system
where reactions are catered to.
Q# 3

Sol:

What is compensation benchmarking?

Compensation benchmarking is the process of using internal job descriptions to match to


established salary survey jobs in order to identify the external market rate for each benchmark
position.

Why is compensation benchmarking important as a “best practice”?

Establishing market rates for core positions within an organization is important for a variety of
reasons.  First and foremost, it guides pay decision-making including hiring, promotions,
internal equity salary adjustments, and general compensation budget planning.  Because labor
costs are the largest cost to any organization, a solid understanding of the external value of
each position allows an organization to develop an approach for setting overall total rewards
philosophy, or the level at which the organization will set salary levels.  The ability to balance
the needs to attracting and retaining talent with fiscal responsibility of the organization is a key
priority for executives. Compensation benchmarking provides the information leaders need to
define the costs associated with salaries and other compensation components such as profit
sharing or bonuses.

How to do compensation benchmarking:

It is very important to use a reputable salary survey to complete compensation benchmarking


so that the matches made to the market are as accurate as possible.  In addition, reputable
salary survey companies employ compensation analytical professionals trained to compile,
analyze, and publish data in a confidential and robust manner, ensuring a true representation
of pay levels in the market.  Also, regulatory guidelines such as the Sherman Anti-Trust Act set
forth requirements for the way in which salary information is collected and shared, in an effort
to ensure price fixing of salary levels is not occurring. In order to complete a compensation
benchmarking project, current job descriptions and identified salary surveys which include
similar jobs in comparable industries and similar size companies are essential.

How is compensation benchmarking done?

The first step in compensation benchmarking is to build a list of salary ranges for current and
future job roles. This data can come from traditional salary surveys, paid salary software programs,
or custom surveys which are performed by a consulting firm.

To calculate pay grade, consider the size of your organization, the range in the hierarchy between
your lowest and highest ranking jobs, and how you calculate pay increases and promotions within
your organization.

Once you’ve set your pay grades, it’s time to set salary ranges. The first step is to find the midpoint
of the market value for each job title, based on salary data. Next, calculate the spread between the
minimum and maximum salaries for the role. Lastly, determine the minimum and maximum salary
for the range, referring to the midpoint market value of each role as a guide.

Compensation benchmarking is designed to maintain fairness for both the employer and the
employee. It’s a central element of a well-structured compensation plan.

Nestle Uk- “Good Food, Good Life”

Nestle- The World’s largest Nutrition, Health, and Wellness Company was founded in 1866 by
Henry Nestle. For over 150 years, the company aspires to enhance the quality of life through
enriched beverages, food supplements, and best tasting nutrition choices by empowering its
brand images. Globally, it has 500 factories operates in 191 countries worth revenues of
$93,512.50 and ranked #76 on the Fortune Global 500 in 2019. Around 96% of the UK
household consume Nestle brands that employ 20% of the total employees globally mainly in
UK 19 sites (Nestle annual report 2018).

Nestle is well-positioned with high-quality brands that are valued by customers. With 3,08000
employees across the globe, Nestle has implemented a continuous performance management
system to support on-going performance coaching for its employees in London(PRNewswire
SAP SE in London 2017). Through this procedure, employees’ and managers’ performance will
be assessed by conducting on-going series of activities for bringing the improvement into their
work culture. On this basis, the company can line up performance management with other HR
processes.

Nestle Performance Indicator

Creating shared value is a business concept that customizes the economic and social value for
the products by addressing social issues. At Nestle, creating shared value is the way they do
business. In 2015, Nestle was recognized as Fortune’s Magazines’ most admired Food Company
in the world.

The HR team of Nestle is considered as a benchmark in terms of recruiting processes. To meet


the particular set of goals, the company helps the employee in improving their skills, attitudes,
and behavior as well as decreasing the labor work rate ( Nestle HRM n.d).  As Nestle provides
the freedom to ask question i.e 360-degree feedback system for an unfair evaluation to its
employees, this becomes one of the significant performance indicators for the organization.
( Strategic HRM, n.d). This also facilitates honest, transparent coaching, feedback and
recognition, and supports employees’ development, motivation and engagement within an
organization (Nestle in Society, Creating shared value 2017). To know how to write an essay on
HRM policies, you can also take help from the assignment writer.

Workplace Safety, Health and Wellness- A Holistic Approach To Employee Safety

A healthier employee can be expected to be more productive, engaging and hardworking. In


2015 Nestle launched a “Nestle Framework for employee health” that promotes a healthy living
workplace by focusing on ergonomics, healthy diets, stress and resilience, and fatigue and
working hour of an employee (Nestle HRM.nd). The chart shows the key safety and health
performance data of employees for 2017.   

By identifying the work-related illness and injury rate, Company customizes training programs
and tools for a different group. As per data-driven by global nestle standard accounted in
injuries and illness between 2015-2017 company commenced “The Know Your Number
Programme” in 2017 as a world-wide health program. As a result, 97% of the market offers
health and wellness programs to the employee (Nestlé in society Creating Shared Value 2017).
To know what are the other safety and health roadmap initiated by Nestle, you can also ask
for assignment help assistance given by experts.

Contribution of Performance Management towards Organizational Growth

Nestle considers its employee as the most valuable assets. The company offers favorable
remuneration, attractive compensation packages, reward the employee for what they deserve.
Much of the training programs in the UK are generally purpose-oriented and designed to
improve pertinent skills and competencies. This is possibly done through the continuous efforts
of the strategic human resource management and their planning for briefing the strategies. 
That is how employees become able to share his/her knowledge and ideas briefly through
lateral professional development.
Nestle has been offering “Nestle Apprenticeship Programmes” in the UK for over 50 years in a
range of functions and at a different level of study (nestle.co.uk). Under this employee is sent to
aboard to examine the consumer taste, and market strength. These activities and 36o degree
assessment account for the overall development of the organizations. To know how
Apprenticeship Programmes influence an employee’s career, you can ask for the online
assignment help from the essay writer.

Conclusion

Over the years, Nestle has demonstrated enviable capabilities to stay ahead in the rapidly
evolving business environment by maintaining a transparent performance management
system. For a successful organization, it is mandatory to build a healthy relationship with
employees whose majority contributions are related to satisfactory goal achievement. That is
why; employee’s and managers’ performance will be assessed by conducting on-going series of
activities for bringing the improvement into their continuous performances. In fact, to meet the
particular set goal, Nestle helps the employee in improving their skills, attitudes, and behavior
as well as decreasing the labor work rate which is beneficial in terms of growth. To provide a
healthy work culture, Nestle offers favorable remuneration, attractive compensation packages,
rewarding occasionally to pay an employee for what they deserve. Off course what is right for
one company may not right for others, but this is the undeniable fact transparent performance
management is a key behind creating a healthy work culture for employees.