c. Skills and achievement test An achievement test is a test of developed skill or knowledge. The most common type of achievement test is a standardized test developed to measure skills and knowledge learned in a given grade level, usually through planned instruction, such as training or classroom instruction. d. AIDS and drug test Most businesses put workplace drug testing in place because of a recent incident on the job. There may have been rumors of employees using drugs or suspicious behavior. There may have been paraphernalia found on company property. This will reduce company's exposure to risk and liability. e. Test on the interest to perform duties Most interest tests provide candidate with a list of two activities at a time. Candidate then indicate which of these activities appeals to his the most. Based upon the candidate choices, a result with his strongest interests is reported. Sometimes statements are given, for which candidate indicate whether they apply to you or not. f. Assessment Centre An assessment centre uses a range of assessment methods and exercises to evaluate job candidates. Candidates go through a series of tests and interviews that can last for a day or more and are evaluated on a wide range of competencies related to the vacant position. 94
6.3.4 Induction and Orientation Induction and orientation are activities that are conducted to reduce stress on new employees by familiarizing them with organizational policies, existing employees, and the organizational environment. Induction is the effort to inform new employees about the jobs that are to be performed them. Induction which comes before orientation is of a shorter duration than orientation. Induction: The process of introducing new employees to the organization and work environment. Orientation: The process of helping new employees to align their jobs and adjust to the new workplace. i. Objectives of conducting induction and orientation a. Reduce feelings of anxiety and worry among new employees b. Enable new employees to perform their duties efficiently and effectively c. Enable new employees to feel more comfortable, especially among senior employees. d. Enable new employees to form a friendly relationships with other new and existing employees i. Steps in induction and orientation a. Introduction the organization’s background b. Holding a program to introduce new employees c. Describing employee benefits and facilities d. Listing the job’s duties and responsibilities that must be performed by the employee 95
6.3.5 Training and Career Development 96 Activities conducted by organizations improve the current work performance of employees, thus continue working with the organization. Training is enabling them to an organizational activity that aims to improve an employee’s current performance. i. Training categorized Employee training can be categorized into three skills as follows: a. Technical skills Training conducted to improve and increase the employees’ technical skills. Basic technical example are reading, writing and arithmetic b.Interpersonal skills Employee’s ability to interact with his colleagues & leaders example listening, effective communication & conflict management c. Problem-solving skills Solve problems, especially those not routine in nature ii. Types of training and orientation a. On-the-job training/in-house training On-the-job training isn’t always standard practice, but it can increase productivity and efficiency in specific industries. Not only that, it can benefit the company as a whole, from reducing training costs to creating more effective, motivated employees. Perform the same duties but at the same time, the coordinator will train the employees by giving counseling, guidance & opportunities to handle projects. Objective to do on-the-job to improve employees’ skills. Instances of on-the-job training methods are job rotation, modules, and workgroups.
b. Off-the-job training/out-house training Off-the-job training methods are those in which training is provided away from the actual working condition. It is generally used in the case of new employees. Programs to train are not related to routine duties but are related to the other jobs in the organization. Instances of off-the-job training methods are workshops, seminars, and conferences. 6.3.6 Performance Evaluation/Appraisal A performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics. Performance evaluation is a human resource management activity used to determine the level of performance, efficiency, and effectiveness of the duties and responsibilities within a certain period. A continuous process of communicating with employees regarding their expected duties and current work performance in the organization i. Types of performance a. Informal performance evaluation Day-to-day basic evaluation. Staff will meet their manager to obtain the evaluation of their work performance. This encourages desired outcomes and avoids undesired outcomes. b. Formal/systematic performance evaluation Comprehensive and formal evaluation. An effective way of distributing rewards and updating existing benefits 97
ii. Objectives of conducting performance evaluation a. Identify whether the employees have performed their job well The employee knows exactly how well he did during the performance review period and uses that information to improve his future performance b. Reward the successful employee Performance appraisals identify the employees who have performed excellently, satisfactorily, or below expectations. This enables the organization to justify the rewards (salary adjustments, bonuses, and so on.) c. Rightsizing/ downsizing decisions Where an organization needs to layoff/ reduce the number of employees, performance appraisals will help ensure that the high-performing staff are retained. iiii. Factor in performance evaluation (weaknesses) 98 a. Recency effect This type of bias is when a manager evaluates subordinates based on current or recent actions and events and fails to take the entire review into account performance period. b. Halo effect This is where a manager values a certain positive quality of an ignores other weaknesses employee so highly that he or problems that the employee may have. c. Horns affect Opposite of the halo effect (a single negative attribute manager to give a or event causes the low score for all other factors in the appraisal d. Central tendency Where the manager scores every question on a scale in the middle-level rating. e.Differing evaluation behaviors among raters Some managers may be too lenient, giving overly high scores, while other managers may be too strict and give overly low scores.
6.3.7 Transfer And Separation The transfer involves moving an existing employee to fill a vacant position in the organization in order to effectively fulfil organizational goals. The transfer is done for various purposes like giving employees a broader job experience as part of their development and filling vacancies as they occur. When a transfer happens in an organization, the staffing process needs to be done again to fill the vacancy arising from the transfer. There are two types of transfer: 99 i. Lateral transfer Move to a different job with essentially the same title, salary, and role either within the current place of ii.Management-level transfer Occurs when an employee is promoted (or demoted) from one management level to another. employment or with a new company. Separation refers to an employee’s exit from the organization. There are many reasons for separation like resignation, retirement, medical boarding out, death, and retrenchment. Organizations must have comprehensive separation policies and procedures to treat the departing employees equitably and ensure a smooth transition for the organization. Exit interviews can be conducted human resource department to obtain the views departing employees about different aspects by the of the of the organization, including the efficacy of its human resource policies. Where separation arises from retrenchment or dismissal, HR managers must also be careful to comply with employment and labour laws.
6.4 Career development and maintaining staff turnover Career or staff development refers to the policies, practices, and procedures used to develop knowledge, skills, and competencies of employees to achieve an organization’s goals as well as employee satisfaction and well-being. It requires successfully navigating company's occupational options to choose and train for jobs that suit with personality, skills, and interests. 100 When someone pays careful attention to their development, they identify their own strengths and career blind development. Staff is actively value on the amount that a company invests in their looking for learning and development opportunities to help them on their career path and need to feel that their employer is invested in their professional development. spots, then work hard to improve their skills. It also involved learning about different roles and industries to find a match to their abilities, seeking out opportunities to advance, and maybe even changing careers altogether if they find a more suitable one. Employee retention is a phenomenon where employees choose to stay on with their current company and don’t actively seek other job prospects. The opposite of retention is turnover, where employees leave the company for a variety of reasons. Retention is defined as the process by which a company ensures that its employees don’t quit their jobs. Every company and industry has a varying retention rate, which indicates the percentage of employees who remained with the organization during a fixed period. Methods to retain staff: 1. Invest in employee professional development Organizations need to be aware that employees place a high
2. Establish clear expectations and policies Employees know what is expected of them and how they will be evaluated. Manager should explain clearly and simply the expectation by: a. communicate expectations with employees as clearly as possible. b. use software designed to track productivity to see how the employees respond to manager new expectations. c. hone the expectations with employee feedback so that the manager expectations remain. 3.Offer a financial and non-financial reward. rewards package that is truly beneficial. Providing financial and non-financial rewards can motivate employees to work harder working with the organization. Financial rewards like bonuses, allowances, employee share options, and so on. Non-financial rewards benefits like health insurance, accommodations, flexible working hours, and study loans. 4.Create a culture of open communication Employees are not afraid to speak out and share their ideas. Managers must be committed to having open, transparent, and respectful communication with their subordinates. 5.Make it a priority to help employees feel appreciated and valued When employees feel valued, they’re more likely to remain loyal to the organization, even if it’s not perfect. Increased job satisfaction can lead to improved performance and reduced turnover. Clearly, employers have the incentive to ensure employees feel valued. 101
EXERCISE 102 1.Define staffing. 2.State FIVE (5) types of tests which usually implement in the selection process. 3.Write FIVE (5) steps in the selection process to get the right candidate with prerequisite qualifications and capabilities from a group of applicants. 4.Mr. Manuel is the Head of the Human Resource Department of a newly formed company. He needs to make some major changes to the company’s policies. He noticed that the company’s staff turnover is quite high and it affects the company’s production. He has to find ways in retaining the staff. In this situation, interpret FIVE (5) methods available for him to practice in the company. 5.Staffing is one of the most important managerial functions that help in obtaining and fulfilling various positions in the organization with the most suitable and capable person. Discuss TWO (2) importance of staffing. 6.External hiring involves hiring people from outside of the organization. There are several methods to conduct external hiring. Illustrate FIVE (5) methods on how a manager can implement the external hiring process. 7. Show FIVE (5) elements which can motivate you to retain in the same organization for a long period of time.
7.1 Definition of Decision Making Decision-making refers to making choices among alternative courses of action—which may also include inaction. The process of identifying and selecting a course of action to solve a specific problem. Huber (1980) defined decision-making as the problemsolving process involving a set of activities undertaken to explore and implement corrective action in a certain situation. CHAPTER 7: DECISION MAKING 103 Learning outcome: Decision-making is a fundamental process in management. The top, middle and first lines have the responsibility and authority to make decisions. The effectiveness of decisions can be evaluated based on the following 2 criteria: (i) Quality objective (ii) Acceptance by those who made the decision
7.2 Types of Decisions Despite the far-reaching nature of the decisions in the previous example, not all decisions have major consequences or even require a lot of thought. These types of straightforward decisions are termed programmed decisions; these are decisions that occur frequently enough that we develop an automated response to them. The automated response we use to make these decisions is called the decision rule. For example, many restaurants face customer complaints as a routine part of doing business. Because this is a recurring problem for restaurants, it may be regarded as a programmed decision. To deal with this problem, the restaurant might have a policy stating that every time they receive a valid customer complaint, the customer should receive a free dessert, which represents a decision rule. Making strategic, tactical, and operational decisions is an integral part of the planning function in the P-O-L-C (planning-organizing-leading-controlling) model. 104 Programmed Decisions i. Made based on predetermined policies, rules, and procedures ii. Normally involve situations or matter that is repetitive or routine in nature iii. Made by lower-level management iiv. However, programmed decisions can sometimes prevent managers from making better decisions as some situations may have exceptional circumstances not covered by the organization’s policies, rules, or procedures Non Programmed Decisions i. Involve situations that are new or exceptional for which there is no proven answers to rely on as a guide. ii. Usually made by top-line managers who would have the requisite conceptual skills and experience. Example : efficient allocation of limited resource how to increase the efficiency of the customer service department what needs to be done when a new the product fails in the market
Figure 7.2 Programmed vs Non-Programmed Decisions 7.3 Conditions of Decision Making Managers make several decisions during the course of business activities. Sometimes they are sure about the future conditions but sometimes they have difficulty estimating the future conditions. It is important for the manager to know in which condition the decision is to be made. A decision made relating to the situation helps to adjust to that situation. There are three conditions of decision-making. i. Certainty Conditions Managers are able to predict what will happen in the future. They have information that is complete, relevant, accurate, and reliable, and they also have adequate and complete knowledge about the problem. Thus, the manager is able to list the outcomes of implementing each of the available alternatives. This condition exists in routine decisions such as day-to-day activities, payment of wages, salaries, etc. Another example is when a person is going to buy a car, he can collect all the relevant information about that car, and he gets confirmed what type of car he is buying. 105
iii.Uncertainty Conditions Very little information is available and the reliability of the information is doubtful.Managers must be able to think critically. Due to the unavailable information, the manager is unaware of the situation he is facing, he is unknown of the consequences associated with the alternatives. Uncertainty arises due to a lack of information, the introduction of a new product or service, the adoption of new technology, etc. It creates difficulty to understand the environment, predict the future and make a decision. Thus to make a good decision a manager must collect the relevant information as fast as possible. Because of not enough information statistical analysis is not possible here. Qualitative tools such as judgment, intuition, and experience play a vital role in the collection of information in an uncertain situation. ii. Risk Conditions Limited or insufficient information. Managers can estimate the probable outcome based on their experience, research, and other available information. Due to incomplete information, it is difficult to predict future conditions for the manager. So to get full information he can collect the required information through research, knowledge, experience, and other available information. After collecting the information it can be analyzed through judgment and statistical analysis and the alternative which has the highest expected outcome can be selected. 106
7.4 Decision-Making Process The decision-making process is a method of gathering information, assessing alternatives, and making a final choice with the goal of making the best decision possible. In this article, we detail the step-by-step process of how to make a good decision and explain different decision-making methodologies. 107 Figure 7.4 Decision-Making Process i. Identify the problem The decision‐making process begins when a manager identifies the real problem. The accurate definition of the problem affects all the steps that follow; if the problem is inaccurately defined, every step in the decision‐making process will be based on an incorrect starting point. One way that a manager can help determine the true problem in a situation is by identifying the problem separately from its symptoms. a. Define the problem • Sometimes difficult to identify the problem because involve many interrelated issues(some of these issues may just be symptoms and not the source of the problem) b. Identify the objective of the decisions • What would constitute an effective solution c. Diagnose the causes • Determine the actions that must be taken to solve the problem
iii.Form alternatives 108 All managers want to make the best decisions. To do so, managers need to have the ideal information, resources time, personnel, equipment supplies as well as identify any limiting Realistically, operate in an environment that normally doesn't provide ideal resources. So, they must choose to satisfice to make the best decision possible with the information, resources, and time available. One of methods the best-known for developing alternatives is brainstorming, where a group works together to generate solutions. ideas and and alternative The assumption behind factors. brainstorming is that the managers dynamic — one stimulates person's group thinking ideas, no matter how outrageous, can generate ideas from the others in the group. Ideally, this spawning before long, lots suggestions and ideas of ideas is contagious, and of flow. Brainstorming usually requires 30 minutes to an hour. Although brainstorming is the common technique most to develop alternative solutions, managers can use several other ways to help develop solutions. a. Proses of listing suitable and unsuitable alternatives b.Common brainstorming method:
iii. Analyze the alternative 109 Evaluation will be made based weaknesses of each alternative. The alternative must on the strengths and be evaluated according to pre-set criteria and values. Four (4) factors must be considered in evaluating alternatives; a. Authority factor: top-level management has the right and authority to select the best alternative b. Biological factor: Are the organization's human resources able to support the implementation of the selected alternative? c. Technological factor: can the physical facilities support the implementation of selected alternatives? d. Economic factor: can the organization afford the implementation costs of selected alternative? . iv.Select the best alternative Each alternative should be evaluated systematically according to 6 criteria; a. Feasibility: the extent to which an alternative can be accomplished within the organizational constraints (budget, technology, policies) b. Quality: how effectively each alternative fulfils the quality criterion c. Acceptability: the degree to which decisions makers are affected by the implementation of an alternative d. Cost: the resources level required e. Reversibility: the extent to which an alternative can be reversed f. Ethics: how compatible an alternative is with the organization’s social responsibility and Managers’ ethical standards.
iv. Implement and perform an evaluation The ultimate success of the chosen alternative depends on whether it can be translated into action. Evaluation stage: decision makers/managers gather information –on how well the decision is implemented and whether it was effective in achieving its goals Feedback is important, and provides information that can lead to a new decision cycle. Many major problems processes are solved only after several decision-making are carried out, each contributing modest improvement. 7.5 Group Decision-Making Technique As leaders, there are many decisions that we can make on our own but often, engaging the opinions and perspectives of others enhances the decision that is made. The group decisionmaking process can differ greatly from organization to organization because each team is unique. Group decisionmaking techniques can offer team some structure when it comes to making effective decisions and finding alternative solutions. i. Brainstorming A brainstorming session is a type of group decisionmaking that can be really effective when manager need to raise potential ideas and solutions. This offers a free-flowing structure to the discussion and allows the whole team an opportunity to share their ideas on how to approach a particular situation. The main goal of brainstorming is to come up with as many suggestions as possible and then decipher which idea may be the best approach. These meetings are a little more geared towards generating ideas than coming to a final decision but often, one idea stands out from others and can be selected as the most effective solution. 110
ii. Nominal Group Technique This offers a free-flowing structure to the discussion and allows the whole team an opportunity to share their ideas on how to approach a particular situation. The main goal of brainstorming is to come up with as many suggestions as possible and then decipher which idea may be the best approach. These meetings are a little more geared towards generating ideas than coming to a final decision but often, one idea stands out from others and can be selected as the most effective solution. 111 Figure 7.5 (b) How Nominal Group Technique is applied iii. Delphi Technique The Delphi technique is a good option when you need to reach a group consensus for a major decision. This group decision-making process takes all of the ideas generated by the team and compiles them for the leader of the group to break down into a smaller list of possible approaches. Those fewer options are then taken back to the group for further discussion and collective consideration. Essentially, the choices are condensed until a majority decision can be made. The idea is that when there are fewer options available a decision is reached with much more ease and with collective agreement from team members.
Figure 7.5 (c) Step in Delphi Method 112 iv.Electronic Meeting Figure 7.5 (d) Example electronic meeting An electronic meeting system (EMS) is software intended to provoke problem-solving and decision-making within a group. Standard features of electronic meeting systems include electronic brainstorming (generally in an anonymous format), parallel processing, discussion tools, and voting. The unique features of an EMS overcome the limitations of traditional face-to-face meetings such as lack of participation, criticism, and domination of the proceedings by only a few members.
7.6 Advantages and Disadvantages of Group Decision Making Group decision-making is the concept of giving a topic to a targeted group of people where the individuals collectively decide their opinions.After collectively a decision happens, then it can’t change by any member of the group or by anyone outside the group. Group discussion always consists of people with two or more individuals. Advantages of Group Decision Making 1. Able to collect more information and diversity of views A group is better equipped as far as information is concerned. An individual cannot have all the information that is available to a group as it consists of several individuals. 2. Able to develop many effective alternatives A group always has the advantage of varied views. This is because a group always has more than one member, and since every member is unique, there is bound to be a variety in their views also. This is also the reason why there are varied approaches to solving a problem. As group decisions tend to cover a greater area, they provide better insight for decision-making. 3.Degree of involvement where members are more committed to solving the problem together There may be some group decisions that require expert opinion. The group can either include experts or can call them from outside to form a separate group to take a decision on a particular issue. The members of a group feel involved with a given problem. This minimizes their resistance. It strengthens an organization and facilitates decision-making.. 113
4. Greater acceptability where decisions made by the group are more likely to be accepted by the other employees The views expressed by a group have more acceptance than those of an individual. This is because the decisions are not imposed, but are part of a larger consensus (general agreement). A group decision is automatically assumed to be more democratic, and the decision of an individual can be perceived as being autocratic (dictatorial). Disadvantages of Group Decision Making 1.Takes a longer time Take up time and the interactions between group members can be complex. A group involves several individuals. Getting them organized, planning and coordinating their meetings, defining and explaining to them the purpose of a meeting and the goals, and finally reaching a solution or arriving at a decision can be quite cumbersome. Making decisions in a group can, thus, be time-consuming. The time loss involved in group dynamics cannot be ignored. 2.Minority domination The group is dominated by an autocratic person or a few people in the group may advocate their view strongly, and the rest of the group just goes along with the decision. Quite often, discussions in a group are dominated by a few members. Although a group discussion means a collective discussion, some people usually manage to usurp (draw to them) a position of informal leadership owing to their personality or style of participation. This position can also be because of the position held within the organization or simply because of self-confidence generated by previous experiences. Sometimes only a few individuals dominate and the others fade away in a group, thereby defeating the very purpose of group discussion. 114
3.Pressure to follow a decision Social pressure in a group may cause dissenting members to accept a decision because they do not want to be excluded by other group members. One of the most significant problems with the group decision-making process is that team members can decide that their top priority is to avoid conflict instead of fighting for their ideas. This disadvantage can quickly lead to a problem that is called “group think.” You can spot it happening when the loudest voice in the room is the one getting all of the ideas to pass. Discussions don’t need bullies to create a successful outcome. An organization needs people to be brave enough to support their concepts while providing evidence that it could be a meaningful solution. 4.Unclear responsibilities Even though members make decisions together, responsibility can become unclear resulting in a lack of accountability for outcomes. Members were easy to deny personal responsibility and blame others for bad decisions. It is difficult to fix responsibility in a group. In an organization, it is often essential to fix responsibility before a problem can be solved. It is difficult to do so if anything goes wrong with a decision made by a group. 115
EXERCISE 116 1.The marketing department is responsible for planning promotion strategies for the upcoming festive season. As a marketing manager, you need to decide the best strategies to be implemented. Show how you make the decision-making step by step. 2.There are a few group decision-making techniques that can be used to improve the decision-making process so that it will be effective and efficient. Explain how the following techniques can be implemented. i. Brainstorming technique ii. Nominal group technique iii. Electronic meeting 3.The process of decision-making involves s electing the most appropriate alternatives out of the various alternatives that are available. As a manager, you are required to interpret any TWO (2) conditions of decision-making that will use to solve the problem in the organization. 4. Apply ONE (1) technique that can be used in group decisionmaking. 5.Mega Products (M) Sdn. Bhd continuously carried out performance evaluations to see whether or not they have met the standards and organizational goals set out. Recently, they had a management review which the achievement of key performance meeting in indicators was presented to all management members. It was reported that continuous sales were declining for the past six months. As a sales manager, you are required to carry out an investigationand decide on appropriate actions to solve this issue. Apply a decision-making process to decide on appropriate actions to be taken to solve this problem.
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