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Published by odllab, 2019-12-19 22:23:46

BBM207/03 Human Resource Management

human resource
Course code: BBM207/03
Course adapted by: Mr. Muniswar Munisamy School of Business and Administration (SBA)

Professor Dr Zoraini Wati Abas
Content Adapter: Muniswar Munisamy
Lead Instructional and Visual Designer: Fauziyah Md Aris Instructional and Visual Designers: Norliza Mhd Rodzi and Nurain Mohd Hassan Language Editor: Arathai
Proof Reading: Jeanne Chow Min Hian
Margin Setting: Norliza Mhd Rodzi
Cover Page and Content Design: Norliza Mhd Rodzi
Muniswar Munisamy
Online Digital Learning Lab (ODL Lab)
Instructional Design for Engaging Experiences (IDeX) Wawasan Open University
Acknowledgement: This course module has been adapted by the
School of Business and Administration (SBA) from the Online Course Materials for the Human Resource Management (BBM207/05) developed by Wawasan Open University.
First edition, December 2019
This course material was published to support the learning of students registered with Wawasan Open University. Wawasan Open University does not grant any degree, certification or credits based solely on your completion of this course material.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
without prior written permission from Wawasan Open University.
Wawasan Open University - DU013 (P)
Wholly owned by Wawasan Open University Sdn. Bhd. (700364-W)
54 Jalan Sultan Ahmad Shah, 10050 Penang, Malaysia
Tel: (604) 2180 333 Fax: (604) 226 9323 Email: [email protected] Website:
© 2019 Wawasan Open University
Wawasan Open University is Malaysia’s first private not-for-profit tertiary institution dedicated to adult learners.

Part 1 | About the Course
Part 2 | Course Overview
Course Synopsis
Course Learning Outcomes Course Contents
Study Schedule Assessment Methods
Part 3 | Study Guide
Unit 1: Introduction to human resource management and associated acts in Malaysia.
Unit 2: Recruitment and placement Unit 3: Training and development Unit 4: Compensation
Unit 5: Employee relations
04 05
Part 4 | References
Part 5 | Feedback Form

Part 1
(Course Details & Allocation of Student Learning Time)
Course Type
Credit Hours
Learning Hours : 120 hours
: School of Business Administration (SBA) : Core Course
: 3 hours
Course Title : Human Resource Management Course Code : BBM207/03
: Mr Muniswar Munisamy
: [email protected] : 04-2180 400
Course Coordinator Email
Contact No
Core Reading Materials : BBM207/05 Human Resource Management
No. of Hours
10 10
8 2
1 Study Learning Materials, Learning Activities and Self- Tests
2 Attending 5 Tutorial Classes (2 Hours per class)
3 Participation in Online Forum Discussions
4 Completing the Course Assignments (CA1 & CA2)
5 Exam Revision
6 Examination
BBM207/03 Human Resourse Management

Part 2
(Course Synopsis, Course Content, Course Learning Outcomes, Study Schedule & Assessment Methods)
Course Synopsis
BBM207/03 Human Resource Management is a core major 3 credit course within the Bachelor of Business (Hons) in Human Resource Management programme. This course emphasizes both theories and applications of Human Resource Management (HRM). It introduces you to concepts and theories that will help you to understand and analyse various aspects of HRM. The first unit introduces the basics of human resource management, strategic human resource management and the relevant acts governing employment in Malaysia. Unit 2 focuses on recruitment and placement including interview methodologies. Unit 3 deals with training and development of employees. Unit 4 is designed to acquaint learners with HRM compensation while Unit 5 covers employee relations in HRM.
COURSE LEARNING OUTCOMES (CLOS) By the end of this course, you should be able to:
1. Explain the sources of recruitment for the organisation and identifying methods of selection of employees.
2. Discuss suitable training and development systems and to manage performance.
3. Explain suitable compensation structures to reward, motivate and retain employees.
BBM207/03 Human Resourse Management 2

Course Content
Course is divided into five (5) units and topics are as below:
Unit 1: Introduction to human resource management and associated acts in Malaysia.
Unit 2: Recruitment and placement. Unit 3: Training and development. Unit 4: Compensation.
Unit 5: Employee relations.
BBM207/03 Human Resourse Management 3
BBM207/03 Human Resource Management 6

(Weekly topic and study activity for each unit)
Unit Week Topic Focus
Learning Activities/ Self-Check
The Strategic Role of Human Resource Management
What is human resource management? The role of HR Manager.
Self-test and practice exercise tch?v=A2HFusWQIeE
Malaysian Labour Laws
Employment Act 1955.
Self-test and practice exercise Employment Act 1955
Strategic Human Resource Management
Strategic human resource role
Self-test and practice exercise tch?v=jWdovBCWTF0
Job Analysis
Personnel Planning and Recruitment
Job Description and Job Specification
Recruitment methods. Internal and external recruitment.
Self-test and practice exercise ch?v=qy09Ls6NqEo
Self-test and practice exercise ch?v=2fhXWlHubpA
Employee testing and selection.
Selection process and testing methods.
Self-test and practice exercise ch?v=1RTeEPyktKY
Interviewing candidates
Types of interview. Structured and unstructured interviews.
Self-test and practice exercise ch?v=htBDNsunGCY
Training and Development
Managing organisational change and development.
Orientation and training process. Training methods. Kirk Patrick Model of training evaluation.
Resistance to change. Unfreezing, move and refreezing.
Self-test and practice exercise ch?v=CLr-xaQEnkE
Self-test and practice exercise ch?v=VDduIzjAjWE
BBM207/03 Human Resourse Management 4

COURSE STUDY SCHEDULE (Weekly topic and study activity for each unit) ... continued
Unit Week Topic Focus
Learning Activities/ Self-Check
Self-test and practice exercise o2mi8zhnhYM
Performance Management and Appraisals
Purpose and methods of performance appraisal. Problems in performance appraisals.
Establishing strategic pay plans and pay for performance
Components of total returns.
Self-test and practice exercise =wZoRId6ADuo
Pay and Incentives (Financial) for Performance
Pay and incentives. Individual and Team variable pay plan.
Self-test and practice exercise v=cr5IdfWUpxc
Benefits and Services (Non-Financial)
Ethics, Justice and Fair Treatment in HR Management
Collective bargaining and employment relations
Employee Safety and Health
Types of benefits and services to employees.
Code of ethics, managing discipline and dismissal.
Types of Union. Purpose of Union. Collective bargaining process.
Occupational Safety and Health Act 1994. Cause of accidents. Prevention of accidents at workplace. Workplace health hazards.
Self-test and practice exercise _B4rlWU5xxQ
Self-test and practice exercise _B4rlWU5xxQ
Self-test and practice exercise 4OpnLs6ftMM
Self-test and practice exercise HqzdWs3mprA
BBM207/03 Human Resourse Management 5

COURSE STUDY SCHEDULE (Weekly topic and study activity for each unit) ... continued
Revision Revision
Learning Activities/ Self-Check
Unit Week
17 18
Quiz, Group Work, Presentation, Proposal, Essay, Annotated Bibliography, etc.
TOTAL 100%
The student will be assessed through the following methods:
Quiz, Group Work, Presentation, Proposal, Essay, Annotated Bibliography, etc.
Note: The grade for a course is assigned based on the overall score, which combines both the continuous assessment and the final examination components (please refer to the Student Handbook for details).
BBM207/03 Human Resourse Management 6

1.1 The strategic role of human resource management
1.2 Malaysian labour laws and their enforcement
1.3 Strategic human resource management
2.1 Job analysis
2.2 Personnel planning and recruitment
2.3 Employee testing and selection
2.4 Interviewing candidates
5.2 Ethics, justice and fair treatment in HR management 5.2 Collective bargaining and employment relations
5.3 Employee safety and health
3.1 Training and development
3.2 Managing organisational change and development 3.3 Performance management and appraisals
4.1 Establishing strategic pay plans and pay for performance 4.2 Pay and incentives (Financial) for performance
4.3 Benefits and services (Non-financial)
BBM207/03 Human Resourse Management 7

Introduction to human resource management and associated acts in Malaysia

1.4 1.5
The Strategic Role of Human Resource Management
Learning Activity 1.1
Malaysian Labour Laws and Their Enforcement
Learning Activity 1.2
Strategic Human Resource Management
Learning Activity 1.3
Summary References
BBM207/03 Human Resourse Management 9

Why is human resources important in a company?
In earlier times, the Human Resource Department was seen as one area which was not important and did not play a major role in the overall formulation of the organisation’s strategy. Today, this has changed especially with the recognition that human resources are
a company’s most valuable assets.
In view of this, due recognition has been given to the HR department and HR managers today to perform tasks that are bigger and important in scope and authority. In other words, HR managers are involved, both in the development and execution of the strategic management process. To help you get a better insight about the involvement of HRM in the strategic management process, we will discuss the HRM functions versus the overall general managerial functions. We will also see the types of strategic planning that HRM undertakes to meet industry competition and business uncertainties. HR managers are expected to provide services that support, complement and supplement the company’s strategic plan. The strategic plan helps companies to move from the current or present state to a desired state in the future, which may be to achieve higher profits through market growth and a greater market share.
Introduction to human resource management and associated acts in Malaysia
BBM207/03 Human Resourse Management 10

In the execution of HRM’s strategic roles, technical understanding and practices of employment laws of the country concerned is very crucial so as to ensure that the organisation does not flout the law of the land but depicts itself as a responsible corporate citizen. In view of this, you will be introduced to some important Malaysian labour laws. Having the knowledge and being able to interpret these laws will protect the organisation from any legal suits and discrimination claims. Through your own reference, you will notice that these laws differ from nation to nation but the basic underlying principles are
HR managers are responsible for staffing or managing human resources as well as employing the other four management activities (planning, organising, leading and controlling). In dealing with human resource policies and procedures, HR managers are bounded by ethical conduct and this section will provide you examples and issues of ethical considerations. Students will learn that Malaysian employment laws and Acts protect both employers and employees from unfair employment practices and
The unit will also enable you to understand how HR managers perform tasks that are broader and more significant in scope and authority. In other words, HR managers are involved in the strategic management process. You will see the types of strategic planning that HR managers undertake to meet industry competition and business uncertainties. HR managers are expected to provide services that support the company’s strategic plan. Strategic plans help companies move from where they (the companies) are now to where they desire to be.
BBM207/03 Human Resourse Management 11

By the end of this course, you should be able to:
1. Explain what human resource (HR) management is and how it relates to the management process.
2. Discuss line, coordination and staff authorities of HR management and differentiate the activities and authority each of these functions carry.
3. Provide some examples of how HR’s roles are changing in relation to a globalised environment, technological advancement, nature of the work and demography of the workforce.
4. Discuss various employment and labour laws currently in place to encourage industrial harmony between employers and employees, as well as protecting both parties from unlawful actions.
What is Human Resource Management?
As HRM students, you need to understand how an organisation functions and how plans are developed and implemented at the corporate, organisational, departmental and operational levels.
At the corporate level, the role of the chief executive officer (the top management)
is to develop the mission, goals and strategic plans which are translated into objectives such as where the organisation is heading, how it wants to be known or how competitive it should be 5 – 10 years from now.
BBM207/03 Human Resourse Management 12

In this respect, all middle management including human resources managers need
to work with top management in policy formulation and implementation. In other words, the HR’s role is also strategic in nature as it broadens its scope and breadth to include strategic human resource planning, staffing, training, appraisals and compensation.
To equip themselves for these strategic roles, human resource managers are expected to have knowledge, skills and competencies in areas of strategic planning, productivity measures, human resource costing, Total Quality Management (TQM) and other related IT skills. The latter include the use of spreadsheets, and presentation packages (e.g., MS
Word and PowerPoint) as well as statistical packages (e.g., SPSS).
In future, organisations will require HR applicants to have attributes such as maturity, assertiveness and emotional intelligence that reflect an understanding of self and others besides being competent on the job. They are also expected to have strong analytical,
decision-making and negotiation skills.
The Manager’s Human Resource Management (HRM) Activities
Management refers to the five basic functions of a manager: planning, organising,
staffing, leading and controlling. Whereas, Human Resource Management (HRM) refers to the policies and practices employed in managing the “people” or human resources functions including recruiting, screening, training, rewarding and appraising.
BBM207/03 Human Resourse Management 13

BBM207/03 Human Resourse Management

Why is HRM important to all managers?
An organisation that does not have a proper HRM (Personnel) department may have faced problems in getting the right people to do the right jobs. Even when a new staff has been recruited, he/she might not stay long enough to contribute to the achievement of the organisational objectives.
Normally, without a HRM department in any organisation, HRM policies and procedures may not be properly instituted. In this situation, the organisation may not be able to retain valued employees. Those leaving, or who have left, are normally those who have the talent and the experience sought after by other employers. The organisation will normally incur further employment costs to hire new recruits in order to replace the ones that have
left, as follows:
Advertising Costs
To attract a prospective employee, an organisation needs to restart the cycle of advertising, contact employment agencies to look for candidates, send a recruitment team of internal interviewers (and job informants) to colleges/universities, and send notices to referrers to
recommend prospects, in which case rewards will be given for successful referrals.
Selection Costs
Screening, interviewing, and testing. Often, personnel involved in selection will be involved in the process so much so that they would be sacrificing other core duties in human resource administration.
Orientation and Training Costs
To equip new recruits with the necessary knowledge, skills and attitude, an employer needs to spend money and time on training employees. Training new employees on the job or off the job often implies zero productivity to the organisation as new employees are usually not productive while they are on training.
BBM207/03 Human Resourse Management 15

A high employee turnover rate has financial implications and may bring about other serious organisational issues such as:
• Failure to hire the right person for the job.
• Inability to retain employees (high turnover).
• Underperformance by current employees.
• Legal actions by employees due to unfair employment practices.
• Legal actions by employees due to occupational health and safety breaches.
• Low morale amongst employees.
Those managers who have been successful in HRM are likely the ones who hire the right people for the right job, train, motivate, appraise and reward these human resources appropriately even though they may lack in planning, organising and control.
Being knowledgeable and having good judgement in the interpretation and use of employment laws and acts will obviate the need to involve the company in any legal suits
and discrimination claims.
As far as Malaysian employees are concerned, the most important piece of legislation is the Employment Act 1955. The Act provides a number of minimum benefits for employees covered by the Act. It also dictates certain rights on employer-employee relationships.
Learning Activity 1.1
Explain the three distinct of human resource manager’s function i.e line function, coordinative function and staff function.
BBM207/03 Human Resourse Management 16

The Act also outlines the important aspects of the Wages Council Ordinance 1947, which dictates the definition of wages given to the employees employed under a contract of service. Under this Act, employees contribute to the Employees Provident Fund (EPF). The Act also covers other aspects of employers, employees, and monthly contribution towards pension funds. Likewise, the Workman’s Compensation Act 1952 provides you with an understanding on minimum wages and benefits for manual workers. Other Acts such as the Employees Social Security Act (SOCSO) 1969, establishes an insurance system to provide employees with financial assistance or compensation in cases where
they are involved in accidents at work or have contracted work-related diseases.
The Occupational Safety and Health Act 1994 on the other hand, outlines the need to keep the work environment safe and requires that employees protect themselves from any form of workplace hazard. You will learn the provisions and conditions that allow young workers to be employed under the Children and Young Pensions Act 1966. The Trade Union Act 1959 and the Industrial Relations Act 1967 will give you an understanding of why employees join unions and how management with non-unionised workers motivate workers to remain employed with their company and become dedicated to their employers. The Code of Practice for the Prevention and Handling of Sexual Harassment at the Workplace (1999) outlines the need to educate employers and employees on
the terms and implications of sexual harassment.
The Employment Act 1955 (latest amendments in 2006)
Employment laws as stipulated in the Malaysian Employment Act (1955) guide employers and employees on discrimination, and related unlawful employment practices in employee selection, interviews, termination and the like. The Act is enforced by the Department of Labour headed by a Director-General and assisted by the Deputy Director-General. Every state in Malaysia has its own labour office. The Employment Act is applicable only to employees and their respective employers. It does not cover those persons who are self-employed (who work in their own firm/business) and other workers who are not employees (for example, contractors). When one becomes an employee, his/her employment is defined by a contract of service, also termed a contract of employment.
BBM207/03 Human Resourse Management 17

You need to differentiate between workers who are employed under a contract of services (employees) and those who are hired under a contract for services (known as non-employees). An example of the second group is when a company hires someone to undertake a project or an assignment that lasts a couple of months. Hiring someone to
paint your house is a form of contract for services.
Outsourcing services to a service provider is another way of hiring employees temporarily and a strategy of “just-in time” employment.
Contingent or contract workers who are mostly foreigners (maids, operators, technicians, cleaners) are being outsourced to provide services to individual house owners or as
operators, cleaners or technicians to manufacturing organisations.
These workers will be entitled to pay and benefits as contract workers whose headcount falls under their respective employment contractors or agents. You will know the status of workers employment by asking the following questions and if employers have control over most of the responses to the questions, then it is likely that there is a contract of
services between the workers and the employers.
1. When and how the work is carried out and who does it?
2. Who provides the tools, raw materials and equipments necessary to do the work?
3. How is payment made? On a regular basis or after the work is completed?
Any invoice submitted by the service provider?
4. Any contributions to EPF being made?
5. Any written contract? If yes, what are the terms and conditions?
6. Do workers need to follow the organisational rules?
BBM207/03 Human Resourse Management 18

The terms in a contract of employment that may vary between jobs within and across industries normally contain the following elements:
• Job title.
• Wages and details of other monetary payments such as allowances and bonus.
• Normal working hours, any requirement for the employee to work overtime.
• Holiday and leave entitlements.
• Other benefits.
• Probationary periods, if applicable.
• Notice of termination (employee and employer).
Workers covered by the Employment Act are:
1. 2. 3. 4.
All those who earn not more than RM1,500 per month.
All those who conduct manual labour.
All those who supervise manual labour.
All those who are employed to drive or maintain vehicles for the transportation
of passengers or goods.
All those employed as domestic servants. One section of the Employment Act that applies to domestic servants including those workers employed in private home (maids, butlers, nannies, cooks) is that the servant must give 14 days’ notice prior to resignation.
Learning Activity 1.2
Describe the mandatory benefits provided by the Employment Act 1955 for:
i. Sick leave and hospitalisation
ii. Annual leave
iii. Public holidays
iv. Maternity benefits
BBM207/03 Human Resourse Management 19

In this section, you will learn that HRM needs to equip himself/herself with strategic management knowledge and competencies in meeting the various challenges in his advisory and staff capacity. This section will outline the planning approaches, the various strategic roles and the implementation of strategic planning the HR manager undertakes to enable him/her to work as a strategic partner with other functional managers in the
What is Strategic Management Process?
A strategic plan is defined as the plan the organisation develops to align its internal
strengths and weaknesses with the external opportunities and threats so as to remain
competitive in doing what it sets out to do. The process of asking questions such as “Where do we want to be 5 or 10 years from now or what do we want to be 10 years from now? “ is one of the important parts in the planning process. Strategies must be formulated to move the company from the current situation or condition to where the
company wants to be in the future.
HR must provide competent staff through proper selection, staffing, training, compensation, appraisals, and evaluation. Sales personnel must be able to deliver the pre and post sales services to guarantee customer satisfaction.
As such, HR is seen to be proactive in handling challenges that include the following.
1. Corporate productivity and performance improvement efforts. HR needs to plan and implement strategies to support this important survival challenge of the organisation.
2. Employee competencies contribute significantly to organisational performance improvement efforts. Any effort to increase organisational performance requires high levels of competencies and commitment from employees. This in turn demands HR to be more competitive in its recruitment, selection, compensation and appraisals, or managing employee performance to support the high performance strategies at the corporate level.
BBM207/03 Human Resourse Management 20

3. HR is expected to participate in developing organizational strategic planning. The reason is HR specialises in hiring, training and compensating employees which become an important input in the formulation of strategy that top management is responsible for. In essence, HR managers must be able to understand what strategic planning is and how it is conducted.
Strategic Human Resource Management
Human resource management as discussed above has a strategic role to play in strategic planning, formulation and execution. In the first instance, HR has to link all strategic planning and formulation with strategic goals via its own formulation and execution of HR systems. This is termed as Strategic Human Resource Management. What are HR systems? HR systems are policies and activities that create a competent workforce or employees who contribute and support the strategic management goals. If the strategic goals of Air Asia are to increase market share to be the leading low cost carrier in the Asian region, its HRM will link policies and activities of recruitment, staffing, training, compensating and appraisals of employees to ensure they are competent and capable of moving the company to the desired goal. In this respect, HR has two major roles to fulfil in linking HR
strategy to the company’s strategic plans and results.
Strategy execution role
Top management formulate strategic plans followed by corporate strategies. These strategies will be translated into broad functional strategies and policies to be used as guidelines by functional and HR managers in deciding and assisting them in policy development and execution in their respective areas. As for HR, its strategies, policies and activities must support the company’s corporate strategies. For instance, Dell’s HR strategies include the web-based help desk that receives and feeds customers’ requests and complaints, and its intranet service bureau which assists Dell to implement its low-cost
BBM207/03 Human Resourse Management 21

Strategy formulation role
Top management must formulate the company’s corporate strategies before executing them or have them executed by HR and other functional areas. For the corporate strategies to result its goals attainment, inputs from HR and other functional areas are important to the top management who have the authority to formulate corporate strategies. These inputs are becoming increasingly necessary to include the HR manager in the strategy formulation team. There are several ways HR can help top management in strategy formulation:
1. HR can scan the environment and assess competitors’ strategies that might pose as threats to his/her own company. Information on a new entry (new company that offers the same products or services in the industry), how competitors plan their advertising dollars, and customers’ complaints about its own product are important to the company while formulating its strategic management process. HR can help the company to tap new markets through its analysis of opportunities in the environment. Through opinion surveys, HR can gather inputs from customers on their new needs: cars or other necessities. Companies such as Perodua and Proton have come up with a new line of product: small cars to meet the need to have an economical second car for the family. Hence, HR management assists top management in the formulation of corporate strategies, executing these strategies, and facilitating goal attainment.
2. HR can provide input to top management about the skills, knowledge, attitude or the competencies of human resources which are available in the job market as well as in the company’s data bank. HR will assist top management to formulate corporate strategies when it has inputs on internal HR competencies versus job requirements that the company needs to meet its corporate goals. HR can also provide input to the top management by supplying information about the company’s internal human resource’s strengths and weaknesses.
3. HR has the vital information on employment laws, health and safety, new regulations in employing young persons, impaired persons or challenged individuals, all of which serve as new inputs to the top management in the formulation of corporate strategies that are non-discriminatory and ethically right.
The manner HR helps top management in the formulation and execution of strategies can be demonstrated by the value-added HR activities or systems that are measurable in terms of its contribution to the company’s overall profits and market share.
BBM207/03 Human Resourse Management 22

Learning Activity 1.3
Based on your own experience or by observing others in your own or other organisations, which HR activities would you think serve as inputs in corporate strategy formulation? Please list them and relate how they add value to the company’s overall performance.
Now that you have completed Unit 1 you should be able to:
1. Explain what human resource (HR) management is and how it relates to the management process.
2. Discuss line, coordination and staff authorities of HR management and differentiate the activities and authority each of these functions carry.
3. Provide some examples of how HR’s roles are changing in relation to a globalised environment, technological advancement, nature of the work and demography of the workforce.
4. Discuss various employment and labour laws currently in place to encourage industrial harmony between employers and employees, as well as protecting both parties from unlawful actions.
Dessler, G. (2019) Human resource management (14th ed.). UK: Pearson. Employment Act 1955. Gregg Learning. (2018, Oct 1). HR basics: human resource management. [Video file]. Retrieved
Laws of Malaysia Employment Act 1955 (Act 265)
Pearson India. (2014, June 30). How can strategic human resource management (SHRM) help in modern organisational growth?. [Video file]. Retrieved from
Wawasan Open University. (2007) Unit 1, BBM205/05 Business Accounting 1: Accounting in
business. Penang: Wawasan Open University.
BBM207/03 Human Resourse Management 23

Recruitment and Placement

2.5 2.6
Job Analysis
Learning Activity 2.1 Self-Check 2.1
Personnel Planning and Recruitment
Learning Activity 2.2 Self-Check 2.2
Employee Testing and Selection
Learning Activity 2.3 Self-Check 2.3
Interviewing Candidates
Learning Activity 2.4 Self-Check 2.4
Summary References
BBM207/03 Human Resourse Management 25

U2 Recruitment and Placement INTRODUCTION
Do you know that before recruiting new hires, managers need to have a job description and job specification ready.
A job description is developed through a work process analysis and the person or the jobholder’s requirement is also determined based on the skills and knowledge the job requires.
To ensure human resources are adequate, an organisation exercises HR planning. The process starts with linking business strategies to fu ture needs, followed by forecasting labour demand and supply, recognising a labour shortage or surplus, setting goals regarding future human resource needs, and identifying strategies to address the problems of shortages and/or surpluses. Once the company identifies a shortage of labour, the next step is to search for potential new hires. You will learn that the ability to recruit successfully is dependent upon personnel policies such as job postings (an internal strategy), level of pay in comparison to the market rate, and the degree of job security
You will learn that methods of selection, which include interviews, reference checks, biographical information, physical ability tests, cognitive ability tests, personalityinventories, and work sample tests, are being practised by organisations who want to ensure an effective selection exercise. The unit will cite examples of how the above selection methods work in practice, and how they can be further improved. The importance of using multiple measures and multiple judgements (more than one assessor) in selection is also emphasised.
BBM207/03 Human Resourse Management 26

By the end of this course, you should be able to:
1. Explain the importance of job analysis in strategic and human resources management.
2. Describe the various recruitment policies organisations adopt to make job vacancies m attractive.
3. Discuss the objectives of personnel selection.
4. Explain the degree of reliability of job application data in predicting applicant’s job behaviour.
5. Explain the various types of interviews.
Job Analysis
Job analysis is a systematic process of determining skills, duties and knowledge required for performing jobs in the organisation (Mondy & Noe, 2005). Similarly, Dessler & Tan (2009) describe job analysis as a procedure in determining the duties of positions existing or available in an organisation and the types of human resources that are required to fill these positions.
In analysing the job, you will learn to write a job description that indicates what the job involves in terms of core activities, responsibilities, authority, accountability and reporting relationship. Basing on the job descriptions, a job analyst who is also known as a job specialist, will determine what type of people will be hired to suit the job description. Before hiring takes place, the knowledge, skills and attitudes of job applicants have to be determined.
BBM207/03 Human Resourse Management 27

Job Description and Job Specification
Both descriptions on job analysis mentioned above suggest that information about job duties, responsibilities and reporting relationship, as well as the corresponding skills, knowledge and attitude of the jobholder are being identified. The first set of information on job duties is termed as job description and the second set on skills, knowledge and attitude required to do the job is termed as job specification. Any working individual will have a job description as part of the employment contract. Job description is also referred to as a document that provides information regarding the tasks, duties, and responsibilities of the job (Mondy & Noe, 2005), while the job specification underlines the minimum acceptable qualifications that a person should possess in order to perform a particular job (Mondy & Noe, 2005). You will notice that most of the employment advertisements specify the minimum qualification applicants should possess for a given job.
Taking Dessler & Tan’s (2009) definition of a job analysis, one resultant product
of a job analysis is a list of duties, responsibilities, to who the jobholder reports to, and the working conditions as well as the supervisory responsibilities. The other resultant product is the job specification, which lists the requisite education, skills, knowledge and personality. To be able to list what the job demands and what is required of the jobholder to perform the job, we must know the relevant type of information that needs to be collected.
Learning Activity 2.1
Pick any newspaper and scan for job advertisements. Identify items that represent job descriptions and those that are of job specifications.
BBM207/03 Human Resourse Management 28

In section 2.1, we have learnt that HRM uses job analysis to provide two important work documents and these are job description and job specifications.
Effective recruitment is one of the agenda that HRM stresses and you will learn some of the ways recruitment achieves this objective: hiring the right people for the right jobs. The steps described in this section link business strategies to future needs, forecast labour demand and supply, determine in what positions there will exist a labour shortage or surplus, set goals regarding future human resource needs, and identify strategies to solve the problem of shortages and/or surpluses. You will see that recruiting new hires either from internal or external sources uses several methods to accommodate each source of recruitment.
One way of knowing the number of employees who can support the business currently and in the future is to forecast the number of internal employees who can be used in current and future positions.
Human Resource Information System (HRIS) are used to track or trace the qualifications of hundreds or thousands of employees. The system can give managers a listing of candidates with specified qualifications and background after searching the database.
Besides forecasting internal supply of candidates, managers need to know the pool of external candidates or potential new hires that the organisation requires to fill in current and future jobs. You might have noticed that newspapers report of jobs created by some investors who have opened their businesses here in Malaysia or having offshore programmes in the country.
Job openings are based on needs that are anchored on business viabilities and a positive economic outlook. You might have also read reports on local graduates seeking employment for several years after completing their studies. This pool of job seekers and the nature of their qualifications, provide managers the outlook and the strategy to source for potential applicants who fit their job requirements.
Forecasting the supply of internal candidates
Forecasting the supply of external candidates
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Effective Recruiting
Recruiting is not a mechanical process, which can be easily automated. It is a human process and is more complex than most managers think. Recruitment should be part of the company’s strategic plan. It helps organisations source applicants whose skills, abilities and interests have been identified via job specifications and who will perform the jobs identified in job descriptions. In this regard, planning and conducting the recruiting process involves good management and coordination between recruiters and potential candidates. It also requires recruiters to understand non-recruitment HR issues and policies to enable effective recruitment. Bear in mind that some recruiting methods have proven to produce better results than others, depending on who you are recruiting for and what your resources are.
Sometimes companies with many subsidiaries or business units need to choose whether to centralise their recruiting effort or to decentralise it in various locations. When companies centralise their recruitment functions, they find it easier to apply company-wide strategic priorities. By making the recruitment functions the responsibility of the HR manager at headquarters, companies can reduce duplication, share the cost of new technologies over more departments, and develop a team of recruitment experts, as well as making it easier to assess the effectiveness of the function. However, there are companies whose divisions are independent or autonomous, or their needs are somewhat different. In this case, decentralising the recruitment functions is an option. For example, communications companies such as Maxis, and Celcom may use decentralisation recruitment functions based on the regions they are operating in to take advantage of customer needs and the
products best offered within the region.
Whether recruitment is done centrally or in various locations, there is a need for line and staff managers to integrate their recruitment efforts. If you think back to the roles of HRM and line management, you will remember that both parties need input from each other to achieve their respective functional objectives. Since the recruiting HR manager has the responsibilities in developing and conducting recruitment functions, he/she must communicate with the line supervisor to find out exactly what the job, which is vacant entails. Without these descriptions and specifications, the recruitment function may be a total waste to the company. Even with the inputs and cooperation from various line personnel, the recruitment activities need assessment.
Organising the Recruitment Functions
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Recruiting via Internet
Online recruitment. An online recruiter such as, which is one of Asia’s leading online recruitment companies assists more than 3 million professionals who are looking for career and employment opportunities throughout the region covering Malaysia, Singapore, Philippines, India and Indonesia. provides a package of career services to help job seekers get ahead in the job hunt. University or college graduating students as well those who have completed their studies, use to register online their resume and other career interest information that will be used to match the jobs employers are offering. Going online to look for jobs is cost effective for both the applicants and employers who have a better chance of finding qualified candidates.
Executive recruiters, also called headhunters, are used by employers to search for
top-management talent. Headhunters are given retaining fees by employers for successfully recruiting top management talents.
You have learnt that apart from using employment agencies, temporary agencies and executive recruiters, employers may use campus recruitment as another method of recruitment.
Executive Recruiters
Campus / College Recruiting
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Referrals and Walk-ins
Referrals. Employers use referrals to minimise risks in employing wrong candidates and to save cost and management time. It is common for companies to ask their employees to recommend their friends or relatives as job candidates. Referees will receive monetary or non-monetary compensation once the candidates are hired and confirmed in their posts.
Walk-ins is an alternative recruitment approach used to attract a large pool of candidates who may come from diverse locations and interests. It is an alternative recruitment approach to identify potential candidates. Employers can set up recruitment booths in a hotel lobby or a shopping mall. Application forms are made available and candidates can fill in the particulars and be interviewed at the same time. Very often, walk-ins are announced in the newspaper or advertised using posters placed in strategic locations for easy viewing and reference.
In this section, you will understand what a selection process is, how selection tests are developed and conceptualised, as well as what types of tests and selection techniques are being used.
Every employer would want to carefully select suitable candidates who can perform
the jobs that have been analysed and need to be filled. There are three main reasons why careful selection is essential. These are:
Learning Activity 2.2
What are sources of internal recruitment and external recruitment?
i. ii.
Employees with the right skills and attributes will perform more effectively.
The cost of hiring wrong persons can be exorbitant considering the time and money spent in the selection and training process.
Legal implications of incompetent or negligent hiring will be borne by the employer.
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Types of tests to predict job behaviour
Cognitive abilities
Intelligence tests which test applicants on their general intellectual abilities ranging from memory, vocabulary, verbal fluency to numerical ability. Specific cognitive abilities (aptitude), another form of cognitive abilities tests would specifically test applicants’ mental abilities in inductive and deductive reasoning, verbal comprehension, memory, and numerical ability.
Motor and physical abilities
Used by employers who need to measure applicants’ motor abilities such as finger dexterity, manual dexterity, and reaction time.
Personality and interests
Personality and inventory tests are used to assess personal characteristics such as attitude, motivation, and temperament. Personality tests must be used with caution in a manner that culturally, it must be tested and validated. Personality tests used and found effective in one culture do not guarantee the same results in another culture
Achievement tests
Various tests are used for a wide range of occupation. Typing tests are used to test the level of knowledge typists have as well as their ability to use MS Word and Excel.
Learning Activity 2.3
Pick any newspaper and scan for job advertisements. Identify items that represent job descriptions and those that are of job specifications.
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Besides tests and background checks, employment interview continues to be the main selection technique. While using interviews as a final selection screening, employers or interviewers must understand the process and how to use structured and unstructured approaches. A variety of mistakes can affect the quality of the interview. In this section, you will see the nature, objectives and process of interviews and how interviewer’s roles affect the quality of interviews and therefore selection of new employees. A selection interview is used in a selection procedure to assess an interviewee’s future job performance based on how they respond and address the questions asked during the interview.
There are different types of interviews that employers use in HRM and each one of them has its own purpose(s) and function(s).
Types of interviews
i. Appraisal interviews are used by a supervisor and an employee to discuss employee’s job performance as rated by the supervisor, while the employee who is being rated is given an opportunity to justify his/her inability to achieve the goals set by both of them at the beginning of the performance year.
ii. Exit interviews are used by employers to interview employees who have sent notice of termination or who have been terminated from current employment. Exit interviews attempt to get information on job related matters or work conditions that can reveal some indicators of what is right or wrong about the organisation. Employers who experience a high turnover among certain professionals or specialists in their respective organisation used exit interviews to gather personal and professional perceptions, expectations, and job satisfaction indicators among those who were leaving the organisation. With this information, employers will find ways to improve work systems, or processes and philosophies impacting employee turnover.
iii. The selection interview is what we want to emphasise and discuss in this section.
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Selection Interview
In using selection interview, we should be concerned and familiar with structured vs. unstructured interviews.
i. Structured or directive interviews generally ask a set of questions intended to guide interviewers in obtaining general and specific information such as applicant’s job interest, current work status and work experience, educational background, off-job activities, other personal questions, self-assessment and interviewer’s ratings or impressions.
ii. Unstructured or non-directive interviews generally have a free or open-ended format, allowing interviewers to use a conversational style with candidates. The interviews can start off with an open question such as “tell us about yourself.” Interviewers will normally probe and pursue into new areas of interests developed in the responses such as, “How did you feel when...or tell us more about that particular experience.”
Besides classifying interviews according to format, we can also use interviews to achieve different purposes or perform different functions. Therefore, it is common to classify interviews according to the nature, content or focus of their questions, such as situational interviews, job-related interviews, behavioural interviews, and stress interviews.
How would you conduct a situational interview? Imagine a situation in which you have been asked to babysit a toddler who happens to be your nephew. Your sister, the mother of your nephew, before leaving him under your care (imagine you have no children but have had some experience looking after a primary school child before) for 3 – 4 hours during the day, will probably give you all the instructions with regard to meals, napping time, toilet training " what TO DO OR NOT TO DO. Your sister might want to test your decision making skills by asking a series of babysitting related questions that allows her to gauge your behaviour in a given situation. She can ask questions such as, “What would you do if the baby doesn’t want to take a nap but at the same time he is tired and groggy?’’
Interviews classified according to content or focus of their questions
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Whereas, in behavioural interview, you might want to tell your sister what you did in an actual situation in the past. The difference between the two types of interviews is that in situational interview, you are given a series of job related questions in a given situation and you have to decide and put yourself in that situation. In behavioural interview, you are asked to focus on a series of questions that require you to describe your reaction to an actual situation in the past.
The other content interview is focused on job-related behaviour. In this approach, an interviewer asks a series of questions involving applicants’ past behaviour on the job. You may still remember your first job interview or other forms of interviews you have experienced. You may be asked questions like, “ Which sport did you take part in high school? Which subject did you enjoy most in secondary school and why?” The responses to these questions will tell interviewers your inclination or interest or skills in the areas probed and with these abilities, the interviewers could make some conclusions about how you might perform in the job.
Stress interview used in selection attempts to gauge applicants’ sensitivity in terms of toleration and stress levels. In this interview, applicants will be confronted with uncomfortable questions or sometimes negative questions. This is conducted by professional interviewers who can manage and control the situations especially when candidates become agitated and burst into crying. Why candidate leave previous employment and questioning his/her weakness areas can put the candidate under hot seat and the way he/she handles the situation can reveal his/her tolerance level. Only certain professions or jobs require stress interviewing, and under normal job circumstances, situational or behavioural interviews are most appropriate and effective to link behaviour to future job performance.
Learning Activity 2.4
Explain why structured interviews, regardless of content, are more valid than unstructured interviews for predicting job performance?
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Now that you have completed Unit 2, you should be able to:
1. Explain the importance of job analysis in strategic and human resources management.
2. Describe the various recruitment policies organisations adopt to make job vacancies more attractive.
3. Discuss the objectives of personnel selection.
4. Explain the degree of reliability of job application data in predicting applicant’s job behaviour.
5. Explain the various types of interviews.
Dessler, G. (2019) Human resource management (14th ed.). UK: Pearson.
Dessler & Tan. (2009). Human resource management (2nd ed.) Pearson.
Gregg Learning. (2017, Jan 10). HR basics: job analysis. [Video file]. Retrieved from
Gregg Learning. (2018, Mar 11). HR basics: human resource planning. [Video file]. Retrieved from
Gregg Learning. (2017, Jun 30). HR basics: selection. [Video file]. Retrieved from
HR360Inc. (2014, Jun 9). How to conduct an interview. [Video file]. Retrieved from
Mondy & Noe. (2005). Human Resource Management (9th ed.) Pearson.
Wawasan Open University. (2007) Unit 1, BBM205/05 Business Accounting 1: Accounting in
business. Penang: Wawasan Open University.
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Training and Development

3.4 3.5
Training and Development
Learning Activity 3.1 Self-Check 3.1
Managing Organisational Change and Development
Learning Activity 3.2 Self-Check 3.2
Performance Management and Appraisals
Learning Activity 3.3 Self-Check 3.3
Summary References
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U3 Training and Development INTRODUCTION
Get to know training & development of employees, organisation & development and employee
performance appraisals
This unit covers the issue of ongoing training and development of employees, organisation and development, and employee performance appraisals. The three topics are interconnected and interdependent, which allow employers to provide employees with the necessary knowledge, skills and attitude to perform given jobs effectively. As business and organisation objectives evolve and new changes have to be instituted, managing change and instituting continuous development programmes are part of organisational renewal. Employees, while undertaking specific roles in the organisation, need to know how their performances are being assessed, and what criteria has been used in appraising their performance. The outcomes of performance appraisals such as gaps in terms of knowledge, skills and attitude in performing the current job can be solved by training. Employees, assessed as having the potential to grow, can be developed further. The performance appraisal outcomes of some employees may indicate superior performance that deserves to be rewarded. These superior performers deserve career planning, guiding and developing.
This unit provides you with an understanding of the reasons to train and develop employees, as well as methods of conducting a needs analysis, preparing the training plan, conducting and evaluating training. New employee orientation is also shown to have measurable and positive effects on employee retention and satisfaction. However, many organisations still do not have a formalised orientation process and each employee is given different orientation in the same organisation. The unit will also link training and development to managing change and organisational development. You will learn that organisations are constantly subject to economic, socio-cultural and political surveillance and the dynamics of change. As such, there is a need to have a planned change to enable the organisation to prepare itself to the economic, socio-cultural and political challenges it will face. You will also understand the roles of organisational development in addressing human, structural process and systems issues in the organisation after completing this unit.
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In the last section of this unit, you will learn the concepts, knowledge and practices of performance appraisals. Appraising employees on the job provides the yardstick for a manager to measure the extent of an employee’s performance in his/her job. If the outcomes indicate deficiencies in current job knowledge and skills, then training could be the solution. For the employee, the appraisal provides feedback on how well he/she performs the job. Having the knowledge on how to improve job performance and getting the rewards for a good job done is linked to employee motivation and job satisfaction. Another important aspect of employee job satisfaction is its link to career growth. Employees who are highly motivated and satisfied with the job are more likely to perform better on the job, learn and fulfil the strategies of career development.
By the end of this course, you should be able to:
1. Describe the five-step basic training process in relation to employee orientation and training.
2. Discuss the importance of training needs assessment.
3. Discuss the role of HRM in managing change and organisational development (OD).
4. Analyse the elements of an effective appraisal programme.
Job Analysis 1.
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The purpose of this section is to make you realise, understand and gain some knowledge and skills in designing, conducting, and evaluating training and development programmes.
Training refers to a planned effort by a company to help employees learn job related competencies. It is the process of teaching new and current employees the basic skills needed to perform their respective jobs.
1. Employee Orientation
The main objective of an organisation is to conduct an orientation programme for new employees. This orientation is basically to impart new employees with the useful background information required to perform their jobs satisfactorily. When a new clerical staff member comes on board, the first thing she or he needs to know is the job requirements. Even before he/she can start work, he/she must know the reasons why the job must be performed correctly. There is a need for a training officer to provide him/her with an overall picture of how his/her job affects other jobs in the same department or in other departments. Apart from that, new employees will have to be familiar with and are expected to follow rules and regulations concerning working hours, break times, leave,
absenteeism, misconduct and conflict of interests among other HR policies. Most companies produce an Employee’s Handbook for distribution to new as well as existing employees if applicable, to assure employees have current information and references to the company’s rules, regulations and practices.
2. Training Process
We will proceed to the training process which has five steps.
Needs Analysis
and Follow-up
Click on each step for more details
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Developing Instructional
Design (ISD)

3. Training Needs Analysis
This process explains and demonstrates how a trainer finds ways to identify training requirements. That is how training needs are identified and analysed for new or existing employees.
Identifying training needs of current employees is not that straightforward. As you may be aware, part of gathering information on whether employees need further training or not is through Performance Assessment, either done formally or informally. Employers normally use formal employee Performance Appraisal outcomes as a basis to train them in areas found to be deficient or inadequate to perform current jobs.
4. Training methods
• On-Job Training (OJT)
• Apprenticeship Training
• Lectures
• Audio-visual based training
• Simulated training
5. Evaluating Training Effectiveness
The four levels of Kirkpatrick’s evaluation model essentially measure:
What trainees thought and felt about the training. This can be done by getting the trainees to fill in the “Training Evaluation Form” after the end of the training session. This can also be done verbally by asking the trainees to express about the training session that they have undergone.
The knowledge or capability that students have gained from the training. This has to be based on the objectives of the training. The most important element here is to find out whether there was a positive outcome. This can be done by having a “Pre Test” before the start of the training and a “Post Test” after the end of the training session. An interview session or plain observing may also be used. This method can be used for skills that can be quantified or seen but is difficult for more complex type of learning which is difficult to assess.
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Trainees are showing new behaviour and capability in terms of record improvement and practising/applying what have been learnt during the training. Measurement of behaviour can be tricky and requires the cooperation of line managers. Observation and interview over a certain period of time are required to assess change and its sustainability. However, the subjective judgment of the interviewer can affect the reliability of such an interview. However, assessments can be designed around key performance indicators or criteria.
The effects on the business such as increase in sales, decrease in customer complaints or environment (good working relationship) resulting from the trainee’s performance. These can be measured through the maintenance of proper specific records such as the volume of sales by a certain salesman. However, it should be borne in mind that sometimes external environment factors influence organisational and business performance which could the true cause of good or poor results.
Table 3.1. Kirkpatrick’s evaluation model
Source: Kirkpatrick, D L, Kirkpatrick’s four levels of training evaluation, http://www.
Learning Activity 3.1
Recall what you went through the first time you were hired. If you are not working in a formal sector or a paid job or you do not have any experience with any orientation programme, think about any similar programme you were involved in (camp, retreat activities, club member, hiking expedition, training workshop and seminar).
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In this part of the unit, we will discuss how organisations address some of the symptoms seen as barriers and hurdles to development and growth either in human capital, structural or processes.
Organisational Design (OD) uses behavioural science to change an organisation. Its goal is aimed at improving individual organisations through an application of a variety of theories, processes, and activities.
Employees, being human, will react to changes with different attitudes and expectations. As such, they will tend to resist changes they considered as threats to their positions or status quo.
Lewin recommends three steps as part of the changing process: Unfreezing, moving and refreezing. In an unfreezing stage, what managers need to do is to reduce the inclination of not adopting change and retain the status quo. One of the alternatives to overcome this problem is to get the employees who resist change to be involved from the beginning via different forms of initiatives such as collecting early information on why change is necessary, and how they can help to make change beneficial to all employees and organisation
To move the change: This can be done through changes in structure such as new work procedures that use creativity, more leeway in some form of decision making and some flexibility, yet requiring employees to be accountable for their actions and results. Importantly, any change programme to be implemented requires the use of Organisational Development that will encourage new behaviours to flourish as new values are developed. Organisational Development (OD) is a special approach to organisational change in which the employees themselves formulate and implement the change that is required. Normally, an organisation needs a trained consultant to assist in making and implementing the change through OD. The main strengths of OD are the features that are unique and different from other types of development programmes or initiatives
Overcoming resistance to change
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Learning Activity 3.2
In your organisation or any previous organisation(s) you have worked with, identify possible individuals or groups whom you think might be able to facilitate a planned change as part of OD effort.
This part of the module on Training & Development links performance as a result of the skills and knowledge acquired through training and development. Once employees resume work after having been trained, they are expected to use the new knowledge and skills learnt and acquired during the training on the job. Evaluation on their performance will follow after they have resumed work for a specified period, normally after 6 months. Although conducting appraisals is a continuous process in which employees are assessed on how far they have progressed on their current and past job performance, and the remedies or corrections used to address deficiencies if any, the formal appraisal exercise is conducted towards the end of the appraised year.
Conducting performance appraisals is part of management performance in which employees are being made to work towards job goals that are in line with organisational goals. Most organisations start their calendar year in January and by December, employee performance appraisal will be conducted. Employers use performance appraisal to assess employees’ job performance against the standards set based on job objectives. The duration in which performance is to be assessed is normally one year and the assessment of performance should be based on regular feedback basis on how employees perform in their daily duties and agreeable action plans as follow-ups. Understanding the process and managing performance appraisal is essential for managers and those who deal with human resource development to enable organisation to move in the right direction and attain their strategic goals.
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Purpose of Performance Appraisal
• • •
Convey specifically what employees are required to do, to effectively carry out the duties of their position.
Help them improve their performance through constructive feedback and coaching.
Reward them for doing well.
Methods of Performance Appraisal
Graphic Rating Scale
Alternation Ranking Method
Paired Comparison Method
Forced Comparison Method
Critical Incident Method
Narrative or Essay Forms
Behaviourally Anchored Ratings Scale (BARS)
Management by Objectives (MBO)
Click on each method for more details
BBM207/03 Human Resourse Management

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