 Ladies and gentlemen, this is Mukhtar Ahmad with the virtual university course of Human Resource Management and that is MGT501. So, today we are here with our lecture number 27 and as you know that this is very important subject of course for those student who are taking it as a required course for their degree program, but even other people they can also get benefit of this course. The people who are watching this, they can also use the information which we are providing in this course for their benefits. So, let us start our today's session and as I said that in this session and this session is of our lecture number 27, we will be discussing a few other aspects of the already started last lecture which was 26th and then we will go for next topic and that is job evaluation today. So, let us start our today's session, let us quickly go back and see what we have covered in our previous lecture, but always keep you in your mind that we are talking about Human Resource Management. The people working with you, since this is our 27th lecture, I believe that you are at the level where now you should have started picking things in an easier way. So, in the beginning maybe in some lectures, because it was something new may be for you, difficulties are coming, but now in this stage, your participation, your learning should be more. So, what did we covered in our previous lecture? And that was about Performance Frazier and in that we saw that not only you evaluate it, but you should also try to manage it, there are two functions, two four is that you evaluate it, the other one is how to manage it, because the bottom line is everybody want results and results in an efficient and effective way. So, in the performance appraisal model, we discussed some steps, I will quickly go through those things. Why do you want to do that? What are the objectives? And in that we told you that there are evaluational objectives and developmental objectives. What is mayor? What is the criteria for that? And you should have proper standards. And when we talked about the standards, it should be realistic, mayorable and the other characteristics we have discussed with you. And how will mayor it? Different methods of performance appraisal we have shared with you last time and who should be doing the performance appraisal, that will be in a course, I will show you the slide and when you should be mailing the performance. We will discuss this today and that will be the remaining part of performance appraisal and then we will move for the next steps. As I told you, there were two objectives, basic, one developmental, either evaluational or first evaluational and then developmental. So, these are the ways that you can do the evaluation, first of all you can do the evaluation. Even in agnashat, self appraisal is there, you can have the supervisor, your subordinates, in your peers, the customer can be better judge and sometime in a form of team people come and they evaluate you. So, that was all about our previous lecture. So, any problem here or anything which is not clear, it ne aasan cheeze hain agar samjee jayi, muskala hai agar for granted liya jayi. So, agar toh aapne pada hua tha, sehi sona hai, thir ja aake dekh hai toh that is a piece of cake. Agreed? Let us move forward. Now, the remaining topics of performance appraisal which we could not cover in during our last lecture due to time bar. Now, when should one measure the performance, uska bhi kuch criteria hona chahi? It depends on the strategy of agnation. Base timing on agnation strategies and typical timing includes like, focus point bhi hosakta ke aiki defa subki performance appraisal hojhe, jisna kal, last lecture me dekash kia tha ke, humare hain annual confidential reports jo hoti, ACRJ se kayaatein, public sector ke andar. Ho jo hai, ek defa sahal ne hoti, wo bhi aap kar saktein. Here natural time span of the job, ek khas job jo hai, uska span kitne time ke andar complete honi hai, wo bhi hosakta hai. Or even you can evaluate people on task basis ko unko project deya, wo complete hua, uske base pe bhi aapne usko evaluation ki. So, that is the, it is the decision of the organization. What they are up to, wo kitni bar karenge uski appraisal, that is again their decision like you in your university you might be having two exam, three exam, some go for four exams, some go for only one exam. So, that is the frequency kitni defa honko ek session ke andar, ek time frame ke andar unki evaluation hosaktee hai. Ammo man dekha gaya hai, kya to log, monthly evaluation bhi hosaktee, they can have the quarterly, bi-annually bhi hosaktee hai, jisko hum semi-annually kayaatein, ya, saal ke saal end of the year, it may be financial year, that is here in Pakistan we start with the July, first se leke 30th June tak jata hai, ya, jishtra end of December, first janvri me aapki ya, end of December aapki evaluation hoti hai, again it depend, organization to organization, it vary and sometime it is good that you should have at the completion of a task. Ta ke ussi duran aapko maloom hojai ke kaha pe problem hai, kaha pe issue aaya. Now, what is the responsibility of line manager, when we are talking about the performance appraisal, they complete the rating part, they do the evaluation, provide performance feedback and this is very important subject, topic. As we discussed last time, unless you will give the feedback, there is no big one of having performance appraisal and if you want to get real result out of that performance appraisal, you must have a very efficient and effective feedback system, is it clear? See, like last time we were discussing that, unless somebody will tell you, you are doing this thing right or wrong, how can you make the corrective action? So, for that purpose, the feedback, the proper feedback is essential and that is again your boss, your aapki line manager that is their responsibility, that they should give you the timely feedback, so that you should make the corrective actions or if you have done something well, you should have the high morale and it is recognition and big motivation factor, what else then? And again, during that time, they also set the goals for the next period. If it was annually, yes, one year is completed, you have done this, this thing good, here something was wrong and yes, we need some training and development, you have to work hard whatever, but let us see what is the next target, what is the next goal for the next period and this is also the line manager's responsibility, the boss, with your consultation, yes of course, it should be realistic of course, same time, your next base on this performance, this will be your next goal. Now what is the HR department's responsibility as far as the performance of Frazier is concerned? Of course, they are the facilitator, so they develop the Frazier system, they provide all those logistic, the materials, the format or whatever, they also provide rate of training. Whoever will be doing the rating thing, they have to train them so that he or she should be very much clear what he has to rate, what are the standards, what was the rate and the job description, what was actually his or her job and now based on those things, how he or she will be rating, so that there is, they want to minimize all those biases, biases things which can affect your performance of Frazier. And of course, this is also human resource department's responsibility that they should monitor and evaluate the Frazier system, whether it is working properly or not, so that is the job of the HR department, but still after doing so much, we have seen that this appraisal performance of Frazier fails, your agnestions are not getting the results, they are not getting the proper outcome of that appraisal system for which this was designed and that can be due to so many different reason and you can see in this graph or this diagram couple of those reason mentioned here, let us go one by one and try to understand why those performance of Frazier fails, let us start with the one. Frazier lacks information, they do not have enough information about the appraisal system, they may be even not aware of the importance of this appraisal system, how they will be doing, what kind of standards they are looking and how it is related with the job of that particular person, so that might be one reason and of course, it is a big reason, then lack of appraisal skill the same thing, the person who is doing the appraisal is lacking that basic skill of judging the people and he may not be even having the basic, that is why see in the previous slide that we have seen that HR department, they provide the training to those people who will be getting the people, so with this training, yes they want to add the skills of rating, so here due to lack of those skills appraisal skills you can have the problem. Next is managers not taking appraisal seriously and some people feel that it is just a requirement paperwork, if you do not take anything seriously of course, the basic essence is missing then, agar to wo yeh samashti hain ki yeh to take it seriously and how can he or she take it seriously that they should understand, they should find out what was wrong and if they have done something good, how it was possible they have achieved this thing, so that in future they should continue it and if they are not up to the mark, so what is the missing piece, where is something wrong, is it the his or her abilities or something is missing there or the motivation factor is not there or maybe it is the opportunity they are not getting proper opportunity, so that they should deliver, so remember we have to take these things seriously, in the organization the people who are doing appraisal they should be very serious, take it to very serious activity because as I said this is the bottom line, so aapki agnation ki boh sari cheeze hain, aapki outcome, aapki performance, aapki growth hain wo ispe depend kar rahi hain, to isko agar seriously nahi lethe, so this is also another reason that your appraisal system will fail, uske lawa manager not are not prepared, they are not ready to go for appraisal at this time, maybe it is the project is not still completed, abhi to darmean mein hi hai to andada nahi lagaasakte ki end result kya hoega, there might be some other reason, personal or situational factors that they are not managers are not ready, so that is why this will fail then, similarly your appraisal will also fail, the system will fail in the organization if the employees they will not receive ongoing feedback. Appraisals hoti hain aapko malumi nahi wo wata, gre kya ho raha hi aapne kaya chasa kam giya just it is in the department somewhere in the file. If it is good you nobody worry it, if it is bad, maybe they are keeping it so that at the proper time they will bring it out and then they will fix you, it is unfortunate. But in the reality, unless I know the feedback, there is no use in that. Similarly, manager may be dishonest or she is not honest or wise. But during our last lecture, we also covered some greater errors things like management biasness, the hollow effect, the strictness or recency or whatever. So if there is some kind of bias due to any reason, intention, unintentional, that can also affect your performance-presure method. It has to do something with the performance and of course with the agnation, basic objective keep you in your mind. Other thing can be like ineffective discussion of implies development, we have earlier seen that objective is evaluation and development. If the discussion is happening, then development should be like this, you have to figure out that this deficiency will be there, they should have this training and they do not do it, they are just discussing on the expense of the language, then still your complete picture will not be there, then your performance-presure will fail. Unclear language, sometime the one who is going to do performance, if it is very difficult to understand a performance, then they forget the relevance or if they are giving feedback then it is not in a language or at the level where that person is, they will not understand what they are saying and when they will not understand, then it will not be of any use. So that is another reason. Similarly, insufficient reward for performance, there is one thing, if there is no good performance, then along with that there is something, the concept of reward and punishment, the concept of reward and punishment is very important, it keeps you moving forward, it takes you along. As someone has made a mistake, you have not even realized it, if someone has made a loss, you have not even realized it, then again he will do the same thing or she will do the same thing. The same way, another side, if somebody has done extra work and he has worked day and night for organization and he has delivered it and proved it that he is, his or her performance is excellent, but then, organization is not giving him or her the reward and remember reward cannot only be the money, money is not the only thing, it can be recognition, it can be appreciation, it can be something else and of course money too. So when you, the one who has done good work, the one who has not done good work, will treat both at the same level, then that thrust, that drive to do good work or to move forward, that mistake will be over and all the concept of performance appraisal or the performance improvement will fail. So remember, when somebody is doing good job, you have to recognize it, you have to give it a reward and the face of reward can be any, sometimes it is just a backup can be, well done can be, it is very important, in comparison to the benefit, it can be increased to something. So I think we have enough about this, reasons, apart from this there can be a lot of reasons, you think about it, look at it from the text, which are in your books, but this reality is that the system fails too and why are there some examples I have shared with you, some reasons I have shared with you. Now how can we improve performance, performance appraisal is done now. We started with our, this subject like started with performance and then we shifted to performance appraisal. Now let us see how can we improve the performance, positive reinforcement, punishment, enforcement strategies, right. Similarly you can have, organization can have the employment, implies a system program, where they will assist them in their career, in their learning, in their skills, self-management is another way and again unless the organization has a good system, and they know that somebody is monitoring them, and if they will do something good, they will get this reward, this opportunity, if they will do something wrong, if they will miss the target, this is the, this is going to be the consequences, or if they will continue to do better, or they will go for the best, of course in their career path, they will be getting this opportunity. So when this is going to be obvious, then everybody will manage themselves as to how their performance will be good. Similarly you can have so many different strategies, through which you can improve your performance. And for that even the external factors like bringing new technology, new ways, re-engineering which we call as organization re-engineering, process re-engineering which we call as organization re-engineering. So you have seen that the work is going on in this way, there are more losses, more time is being utilized, and the same thing which is of effective efficiency, if the process is improved, then that too not only of that process, but also of that person's performance can be improved. But again it should be a systematic way, and we should be very alert, always proactive, not that something happened and then we will do something, no, we should all really be taking ahead of time. Now let's move forward, or appraisal system, for farmers, we have seen a lot of things, add some things in it, whenever you, as human resource department, design some appraisal system, remember one thing, that sport from the system and is very essential. Choose the appropriate rating instrument, pick the relevance of it, better rate it, and again, what will be the right time to appraise, like if you started your semester, that might not be appropriate, but that give you some time. So, we are done with our performance part, so what is next, naturally, what is next, now you have hired people, you have seen their performance, now everybody has some objective, you are sitting there watching me, what is the catch for you, the catch is you are learning something, I am sitting here in front of this cameras, and trying to explain to you, what is catch for me, of course, I will be paid for that, so what is the bottom line, nobody do anything free, everybody has some catch is there, so now, let's come to that point, why people work in the organization, what is catch for them, you cannot just say, cross the border, everybody will get the same thing, that might be dangerous, yeah, you just put a sheet of paper, that is wrong thing, there must be some criteria, there must be some system, which people will be picking to decide, how to decide about the reward, the compensation, how organization should decide about the worth of that particular job, that is job evaluation and pricing of the job, you have read this thing, remember that, it was read at that time, when we discussed job analysis, in the beginning of the lecture, so let's go back for few moments, and just take those things from there and move from there, what was the job evaluation, what was the outcome, do you remember, the outcome of job analysis was job description, job specification and job evaluation, what was job evaluation, the worth of the job, based on which you are going to decide the price tag for that particular job, and that is our next topic, we will be discussing, so let's start understanding, what is job evaluation, job evaluation is the process of ensuring internal equity, that is jobs comparable, worth received, comparable wages, and again there are two type of activities, internal and external, internal, that is like that, how to evaluate external equity for external jobs, that is external equity, so job evaluation is the process of ensuring internal equity, right? Number two, this is a systematically determining the relative worth of the jobs to create job structure in the organization. A systematic way of creating or determining the worth of that particular job which we are talking. It is a blue color job, it is a white color job. So, it is a proper worth to see the process has formed, job evaluation. Similarly, this is an attempt, we are talking about job evaluation right? To identify inputs that are most valuable to the organization and to do well, job hierarchy. So, the compensation results in a wage, or salary hierarchy. This is the job evaluation we are talking about. I hope now it is clear what is job evaluation. In simplest way, you are determining the worth of that job for their reward decimals, for their benefits decimals, for their compensation decimals. Now, there are different methods you can evaluate the job. I have tried to bring all those things in together in one lecture, so that we should understand the complete picture. There are four general methods of evaluating job or evaluation method. The third one is the classification method. The third one is the factor comparison when you are comparing different factors. And the fourth one is the point factor. But before discussing that, let me clear one thing. There are a lot of things that you will see in our lab. And again, it depends. There are a lot of simple methods. They decide with a few points. And somewhere it gets complicated. And this is also important. It depends on from organization to organization. The type of jobs we are talking about. And then let's see which methods should be adapted by the organization. But you don't have to lose yourself in this process. Don't worry about those details things. These are just to give an idea of what is happening. The basic concept is that you should understand why we do the job analysis. And how you decide someone's compensation. It is that hyper hazard thing. Just in your mind, how much salary should be done? Just do it. No. There must be some good reasons to decide how much salary should be done. How much benefits should be done. Let's move and see them one by one. Again, as I have told you, which method should be adapted depends on situation to situation. Let's start with our first method that is the ranking method. And this is a very simple method. The first thing they do is they go through the job description. And then they determine the values. And the values for home, for the organization. And of course they also get the outside benchmarking things that what is happening in other places. Then they arrange it according to the ranking. It is not that important. They just come and open the door in the morning, clean the door, paste it here. And then there is another job that they have to do the office work. Whatever. So they do their ranking in that way. They have different levels. But remember that before doing all this you must have very clear. You should have done the job analysis and you should have written the job description so that based on those available information, the documentary that you have, you will rank them based on that. That this job should be done at the highest level. Its value is worth in the market and in the organization. And in the same way you will rank them and determine their worth. So that is our first method we call it the ranking method. The classification. In this you have to decide how many classifications you have to do in your organization. In general you must have seen that in the organization a great system works. And in some organizations they are different groups type. In the public sector we are called BPS, which is called basic pace scale from number 1 to 22. And then in a scale, in a grade, there will be a different classification. Once you have decided about the categories in which you have to make many, then you have to define all the categories. The standard they have to see, how they have to compare, how they have to define, what their boundaries are. And then you have to rate all those categories into different groups. Now in a group, people from different categories can also come. Let us see grade 18, there can be people from finance, there can be people from production, there can be people from marketing. The group call classes if jobs are similar. If there is a job, then they will call it a class. And if the groups contain different jobs of similar difficulties we will call them grades. As I just told you that they can be in the finance of grade, they can be in the marketing as well. Because their level is of the same type. So they can differentiate the grades of the same type. And then you have to compare jobs to the evaluated with class definitions. Those of you who have made the parameters first are evaluated according to that. And they categorize them according to their appropriate classification. And then you make their description within the same class and group. So that you have a reference point that if you want to decide someone's salary, then according to what classification they fall in which category and what grade should be their grade. And then you make a guideline for that. And according to that they determine their compensable factor that you have done the compensation based on the factors. Let us take an example of this. So that it should be clear. Let us see. As I told you that classes are made up of a grade system. Now even with the same grade you can have different levels, different classes. And to understand this, a clerical worker discusses a class in a group. Look, the category is the same but their roles change. Based on that, their worth will also change, their compensation will also change, their benefits will also change. And maybe the facilities will be also different. Let us see it. Class 1, simple work to help you, facilitate you. No supervisory responsibility for him or her. This category is not required for public contact. They only have to do work. You have to facilitate in the office. In this category the upper level will be done. What will happen? Simple work, yes. No supervisory responsibility but public contact will be made. Now see, in the same category there are different classes. There is a difference in them. The worth of the same base will be different. Look at the third class. Work of medium complexity, no supervisory responsibility but yes, they have to have public contact too. It may, its work complexity has increased a little bit. Simple works have a little complex work. So, a reference point will be given up. Based on this, you can make a different compensation system. Similarly, class 4 will be taken. In this, medium complexity work, what is it? Yes, it also has supervisory responsibility. Whose supervisory? The class 2 and class 1 people or class 3 people. One of them will be playing the role of a supervisor. Senior is in the upper class and public contact is also happening. Similarly, class 5, they have to do complex work. They have to do supervisory work and public contact too. So, in the work, they will be more at the level of high. So, that is what is the classification. Number 3, factor comparison. Based on that factor, one job is different from the other person. This is a widely used method to rank job by a variety of skills and difficulties. And then adding those, these to obtain a numerical rating for each job. But again, you need job description to see what skills, what, what are the things that are included in it. Because, there is a job specification in the job description. You have to determine compensable factors like mental physical skills, responsibility, working condition. These are all factors based on which you have to do a different job, different level. You have to recommend for different grades. Then you have to take the key jobs. Must vary on the factor basis, yes, and must have well defined grades. You have to quantify all those things. And again, you have to rank each job on each factor basis and assign monetary value for those factors. In skills, in knowledge base, if someone has mastered it, if someone has done a PhD, then both the factors will be different. And then you decide the rate based on that. Similarly, you evaluate all the other jobs and then you make a system. This is another way of, another method of job evaluation. The last one, the point factor methods. Basically it is called point method, but it can be factors involved in it. The point method is more quantitative and bit complex too. All those factors are identified based on which you can decide the compensation. There are some steps in it. Quickly, let us go through those things. You have to obtain the job data, select proper evaluator who should differentiate those things, who should be able to identify those things. And same time, you have to identify those compensable factors, based on which you will determine their worth. We will define them so that if someone has a problem, they can see what it means, what is the limit of it. We will make a scale so that the point from here to here, the factor that comes in this category will go to the other category. And then you will assign them the quantitative value, the point value for each factor. Assigning points to degree levels within each factor. If there is a range in that, different levels will come. You will determine all the points. And based on that, you will write the complete job evaluation document, whose base paper is further determined and decide their salaries. And you will evaluate all the jobs related to this type of job. So, these are the four methods, as I said, for the job evaluation, mostly written in your textbooks. And of course, people also practice them. Now, let us see which one should we pick. What should be the criteria when considering which method should we use? Very simple. It depends again on your requirement, the organization's requirement. And it varies from organization to organization. One method might be very simple. The other might be very complex. It depends which one you want and why you want that. The most important thing is simplicity and cost. And cost is a very important factor, isn't it? What do you want to take as a result? How much expenditure is coming? Very basic concern. So, you have to see the four methods we have seen. Ranking, classification, factor methods, and point method. If you want to go with each of these, then its cost is associated with it. And it is as simple as I said, it is complex. So, first criterion should be you go with simple things, you want to give it complexity, and then again depending on the objective. And you can bear the cost on each of these. Acceptability. What will be more acceptable in your setup? Who you can communicate better? Who you can implement better? That is another concern. Another criterion of checking, of picking, which method should you adopt? And then its relevance and validity is also given. How reliable is that method in your environment, in your setup? And how valid is it? That whatever you want to do, will you be able to do it or not? So, basic things, basic criterion that we should know before going for any of these methods. And nowadays computers have come. And it has done a lot of work, efficiency and effectiveness. This is the tool, you are getting benefit of it. So, you have a good system on this pace. Your database is good for your employees. You have documented your job decisions. Then there is no problem. You need trained people who can sit there. And with the minimum time, they can get the proper results for you. So, using this tool, you can adapt your evaluation system to your organizations. You can also use the method. And of course, it will also save cost. And most importantly, you will save time and accurate information. So, this is again in your text. You can also use the computerized job evaluation system. Because this tool helps you. All those calculations and all those things. And you can also find out what is the trend, what is the system. I think enough for job evaluation. Let us summarize that, what we have covered so far. It seems little bit difficult. But as I always say, it is the basic concept, you should be clear. You may not be required to memorize all those things. You must prepare for the exam. But if it is for the concept, then you can write it well in your words. Summarize, what? Today's lecture. What did we see today? It was a little previous to the left over, the 26th lecture job. Before the evaluation, we discussed the meaning of performance surprise. Today, in which we discussed the timing of the evaluation. And how we can improve our performance. That part was from the performance topic. And in that we saw, it depends again on the objectives and the agressions. And then we also saw, why performance surprises fail. And we tried to understand many reasons. And all these things are explained to you. So that you can understand the concept well. Not only this, but next time. When you are at that position, you should not do those mistakes. And you have an idea of what is happening and why is it happening. So we discussed the reason for failure. And then we saw that unless your commitment, your system is not helping you, then there is no benefit of the performance appraisal. And to improve the performance, we saw that there should be a proper reinforcement system. There should be a concept of pleasure and punishment. There should be a concept of reward and punishment. And there should be a sports system within the organization. So then of course, you will always be moving toward better and better things. And then we started new topic today, that was job evaluation. It is not new for you because, as I said in the beginning, we had discussed this in some lectures. But today we tried to understand it in depth. And what was that? It is to create, to find out the worth of a job. And in that, we described four methods. And they were, ranking method of job evolution, the classification method, the factor comparison method and point factor method. And then we also saw what criteria should be there, which method should be adopted. You have to see its complexity. What is the class? What is more acceptable in your organization, in your setup? Again it depends, vary from organization to organization. Now what should be next? You have done your evaluation. You have made that scale. You have graded it. Now what is the next step? Now you have to understand what compensation is. So next topic should be naturally, the compensation system. The bottom line, the cash, the money. Of course not only money, the other things too. So these things we will be discussing, inshallah, in our next lecture. So we are done for today. So how was today's lecture? I hope things are clear. Provided you have done your part, which was taught before the lecture. Similarly, for the next lecture, you should be reading what? The compensation part. From your textbook, you can surf too. Read this topic. And with this purpose, you will study and work hard. Till that time, Assalam-o-Alaikum and Allah Hafiz.