1. `Career Planning
1. Career: Termed as professional ‘ADVANCEMENT’ that means the sequence of
positions that a person holds over his or her professional life
2. Planning: A process of setting goals, establishing strategies & invent plans to
coordinate organizational resource
3. Career Planning: The process enables employees to identify career goals and the
paths to the goals
4. Career Development: It is consist of the personal improvement one undertakes
to achieve a personal career path.
5. Common Concerns of Employees:
a. Do company training programs help my chances for promotions?
b. How do I advance my career?
c. Why hasn’t my boss given me career counseling?
d. Aren’t most promotions based on luck & knowing the right people?
e. Do I need a degree for that job?
f. With all the talk of downsizing, how secure is my job?
6. What does an Employee wants? (Career Planning)
a. Career Equity: The equity in the promotion system with respect to
opportunities for career advancement
b. Supervisory Concern: Their supervisors to play an active role in career
development and provide timely feedback on performance
c. Awareness of Opportunities: Knowledge of opportunities for career
advancement
d. Employment Interest: Different amount of information & have different
degrees of interest in career advancement, dependent on variety of factors
e. Career Satisfaction: It depends on their age & occupation, have different
levels of career satisfaction
7. Benefits of Career Planning
 Aligns strategy & internal staffing requirement
 Develop promotable employee
 Facilitate international placement
 Assists with workforce diversity
 Lower turnover
8. Individuals Career Development: It involves following:a. Job Performance: The most important action an individual can take to
further his/her career is good , ethical job performance
b. Exposure: The career progress is also furthered by the positive
exposure ,which means becoming known by those who matter
c. Networking: It means exposure outside the firm which may be personal
or professional that can be useful to identify better job
d. Resignations: When greater career opportunities exist out side the firm,
resignation may be one of the way to meet one’s career goal

2. e. Organizational Loyalty: Many orgs try to build employee loyalty
through HR practices, including career planning & development
f. Mentors & Sponsors: Many employee quickly learn that a mentor can
aid their career development as it gives informal career advice
g. Key Subordinates: Successful managers rely on subordinates who aid
their performance being highly specialized knowledge/skilled
h. Growth Opportunities: When the employee expand their abilities, they
complement the objectives of an org & contribute to the employee growth
i. International Experience: Those who aspires/desires to the senior
positions for them, the international experience is becoming an increasing
important growth opportunity.
Performance Appraisals
1. Performance: It is the way in which someone or something functions/acts.
2. Appraisal: An expert assessment or estimation of the worth, value, or quality of
a person or thing.
3. Performance Appraisal: Performance Appraisal is a systematic evaluation of
employee’s performance & to understand the abilities of his/her for further
growth & development
4. Uses of Performance Appraisal:
a. Performance Improvement: Through feedback an appropriate action can
be taken to improve the performance.
b. Compensation Adjustment: Performance evaluation held decision
makers to determine who should receive pay increase.
c. Placement Decisions: Promotions transfer or demotions based on the past
performance upon which the placement decisions are made.
d. Training & Development Needs: Poor performance indicates retraining
while good performance indicates potential developments.
e. Career Planning & Development: Performance feedback guides career
decision specific career paths one should investigate.
f. Staffing Process Deficiencies: Good or bad performance indicates the
strengths & weaknesses of personnel dept. staffing process.
g. Informational Inaccuracies: Poor performance indicates errors in job
analysis information of HR Plans.
h. Job Design Errors: Poor performance can be a symptom of ill-conceived
job design.
i. Equal Employment Opportunity: Accurate performance appraisal
information’s indicates no discrimination regarding internal placement
decisions.
j. External Challenges: Like family, health or other financial factors need
to be covered by HR Dept. otherwise they can affect the performance of
an individual.

3. k. Feedback to Human Resources: Good or bad performance indicates that
how well HR function is performing.
5. Performance Appraisal Challenges:
a. Legal Constraints: It should be free from all illegal discrimination. The
use of formed evaluation by HR, should be reliable & valid
b. Rater Biases: The bias often occurs when the raters do not remain
emotionally unattached while they evaluate the employee performance
i. The Halo Effect: It occurs when the rater’s personal opinions
about the employee influences the measurement of performance
ii. The Error of Central Tendency: It occurs when the rater’s
personal opinion doesn’t accommodate the extremes e.g, very good
or very bad
iii. Leniency & Strictness Bias: It occurs when the performance
standards are vague
and
not
comprehensively
conceived/established
iv. Cross Cultural Biases: It occurs when the rater’s tend to apply
their cultural expectations to someone from different culture
v. The Recency (most recent) Effect: It occurs when the rater’s are
affected by recent event or action of the employee that is good or
bad
vi. Reducing Rater Bias: It occurs through training , feedback & the
proper selection of performance appraisal techniques
6. Past Oriented Appraisal Methods:
a. Rater Scales: It requires the rater to provide a subjective evaluation of an
individual’s performance along a scale from LOW to HIGH ( e.g,
Excellent , Good, acceptable, fair or poor)
b. Check List: It requires the rater to select words or statement that describe
the employee’s performance & characteristics ( e.g, Employee listen
others advice but seldom follow)
c. Forced Choice Method: It requires the rater to choose the most
descriptive statement in each pair of statement (+ or -) about employee
being rated (e.g., Learns quickly …….. Works hard)
d. Critical Incident Method: It requires the rater to record statement that
describe extremely good or bad behavior related to job ( e.g., brief
explanation of happened event)
e. Accomplishment Record: It is closely related to critical incident method.
It includes a list employee’s produced accomplishments (e.g., publications
, speeches or other professional activities)
f. Field Review Method: To provide the greater standardization in reviews
some employers use this method in which, the skilled representatives of
the HR Dept go into the field and assist the supervisors with their rating
g. Performance Tests & Observation: It is based on a tests of knowledge
or skills that may include paper, pencil or the actual demonstration of
both. It may measure the potential rather than the performance
h. Behaviorally Anchored Rating Scales: Family of evaluation approaches
that identify & evaluate relevant job related behaviors

4. i. Behavioral Expectation Scale (BES): It is primarily concerned
with defining poor to superior performance
ii. Behavioral Observation Scale (BOS): It primarily asks the rater
to indicate the frequency of identified behavioral anchors
i. Comparative Evaluation Approaches: It is the collection of different
methods that compares on person’s performance with other coworker. In
other words a comparative appraisals
i. Ranking Method: It requires rater to place each employee in
order for best to worst
ii. Forced Distribution: It requires rater to sort employee into
different classifications
iii. Post Allocation Method: It requires rater to allocate a fixed no of
points among employees in the groups
iv. Paired Comparisons: It forces the rater to compare each
employee with all other employee in the group who are being rated
Wages & Salaries
1. Wage: A remuneration paid to an employee by an employer for a fixed task based
amount. (task bond but increasable)
2. Salary: Salary is a fix amount of money paid to an employee by an employer in
return to his/her work performed. (hours bond but not increasable in routine)
3. Compensation: It is a total amount of money, mostly awarded to some one as
recompense for loss or injury.
4. Objectives Sought through Effective Compensation Management:
a. Acquire Qualified Personnel
b. Retain Current Employees
c. Ensure Equity
d. Reward Desired Behaviour
e. Control Costs
f. Comply with Legal Regulations
g. Facilitate Understanding
h. Further Administrative Efficiency
5. Phases of Compensation Management:
a. Phase – I Job Analysis : To evaluate every job using job analysis
information to ensure internal equity.
b. Phase – II Job Evaluation: To determine the relative worth of the jobs
in accordance to their characteristics.
i. Job Ranking: Rank the job according to its importance in
comparison to other jobs in the firm through job analysis
information.
ii. Job Grading: Classification of the job through its relative value
by matching standard description with each job description
iii. Factor Comparison: Compensable/critical factors are the job
elements common to all the jobs being evaluated. Each factor
(responsibility, skill, mental effort, physical effort & working
condition) is compared.

5. iv. Point System: This system evaluates the compensable / critical
factors for each job, but Point System.
1. Determine the Critical Factors
2. Determine the Level of Factors
3. Allocate the Points to Sub Factors
4. Allocate the Points to Levels
5. Develop the Point Manual
6. Apply the Point System
c. Phase –III Wage & Salary Surveys: To determine external equity based
on the rates paid in the labour market.
d. Phase –IV Price Jobs: To determine the rate of pay based on internal &
external equity.
6. Sources of Compensation Data: Wage & Salary survey data are the benchmarks
against which analysts compare compensation levels. These have some inherent
limitations The sources of the data includes:a. US Dept of Labour: It periodically conduct the survey of major
metropolitan (urban) labour market. Some time these surveys go out of
data due to fast changing labour market.
b. State Unemployment Officers: They also compile the information for the
employers. If compiled frequently can be useful to compensation analysts.
c. Employer Association It surveys the member firms in the market.
d. Professional Association: This association & above, the employer
association may be the source for highly specialized jobs.
e. Self Conducted Surveys: It is conducted by an affected individual or an
individual org.
7.

6. iv. Point System: This system evaluates the compensable / critical
factors for each job, but Point System.
1. Determine the Critical Factors
2. Determine the Level of Factors
3. Allocate the Points to Sub Factors
4. Allocate the Points to Levels
5. Develop the Point Manual
6. Apply the Point System
c. Phase –III Wage & Salary Surveys: To determine external equity based
on the rates paid in the labour market.
d. Phase –IV Price Jobs: To determine the rate of pay based on internal &
external equity.
6. Sources of Compensation Data: Wage & Salary survey data are the benchmarks
against which analysts compare compensation levels. These have some inherent
limitations The sources of the data includes:a. US Dept of Labour: It periodically conduct the survey of major
metropolitan (urban) labour market. Some time these surveys go out of
data due to fast changing labour market.
b. State Unemployment Officers: They also compile the information for the
employers. If compiled frequently can be useful to compensation analysts.
c. Employer Association It surveys the member firms in the market.
d. Professional Association: This association & above, the employer
association may be the source for highly specialized jobs.
e. Self Conducted Surveys: It is conducted by an affected individual or an
individual org.
7.