Welcome! to Alpha University College School of Graduate Studies 1 2018/19 (2011E.C) Course title Human Resource Management (Course Code MBAd 531) (Cr. hr 2) Ground rules – Punctuality – Speaking loudly – Active participation – No repeating ideas – Feel free to express any ideas, opinion, etc… – Careful listening than simply hearing – Team work /spirit – No side talking (murmuring/whispering) – No moving after class commences – Keeping mobile silent or switched off – Please, would you add any more ? Self introduction • Give short briefing about Yourself (max 20 seconds for each student) – Full name; – University/ College you studied; – Specialization; – Current job and position – Current Organization; – Work place – Work experience; – What do you expect from this course? Instructor’s Information –Name: Mulatu Takele (MBA, Ph.D) • Assistance Professor • Associate consultant of EMI –Current address: • Ethiopian Civil Service University • Mobile: 0938940300 • Email: mulatutbs@gmail.com • Office: Building ---; Room 402 (4th Floor) Are you ready to Step Out? Ask yourself 8 • Where am I? • Where do I want to go? • How do I get there? Change is natural. Chapter one: Introduction to Human Resource Management 1.What are Organizations and Management? An overview To refresh our memory • What are organization? • What is management? • Why do we study management? What are Organizations? • Organization – is a group of two or more people working together in a structured and coordinated fashion to achieve a set of goals. – are made up of people and function through people. – Without people organizations can’t exist. – possess and utilize different kinds of resources. – creates surplus as: • Profit in the case of business organizations, • satisfaction of the needs in non-profit organizations is. • They use/ get resources from their environment. – Human resources – financial resources – Physical resources – Information • All resources (men, money, materials and machinery) are – collected, coordinated and utilized through people. – Therefore, people are the most significant resource of any organization. Reflect to the class –There are no underdeveloped countries as such but under managed only. (Peter Drucker) What do you observe? Reflect Why do we study Management? • The knowledge of management – is vital in all areas everywhere people are working in group. – is important in • families, social life, politics, public sectors, • all types of organizations (manufacturing or services rendering), • for individuals/ personal life. – Everyone is a manager of him/herself • Management – is key to the success all sectors. – is performed in our day to day activities Definition of Management • Several definitions are given by different scholars or bodies but all are complementary . • Management is – the art of getting things done through people in a formally organized group. (Mary Parker Follet) – the process of planning, organizing, staffing, directing/ leading and controlling the use of resources effectively and economically to attain objectives, (George R Terry) – the attainment of organizational goal in an effective and efficient manner through planning, organizing, leading and controlling the acquisition and utilization of resources. (Peter F. Drucker) • We Study Management – To achieve pre-determined objectives – To understand the impact of change • To understand internal and external environmental factors affecting business – For best utilization of resources – For best performance in a given situation – For formulating corporate strategy – To face competitive challenges – To understand the importance of quality – To understand how to solve any business problem, etc… • There is only one boss, whether a person shines shoes for a living or heads up the biggest corporation in the world, the boss remains the same. It is the customer! • Customer is the oxygen of any organization. 22 Efficiency and Effectiveness • Good managers/ the best managers • do the things both effectively and efficiently. • maintain a clear focus on both effectiveness and efficiency. • Management – is the art of securing maximum results with minimum efforts. • Efficiency – is the achievement of ends with the least amount of resources. – refers to doing things in a right manner. – A measure of how well productively resources are used to achieve a goal • Effectiveness – is the achievement of objectives. – refers to doing the right things. – is adequately accomplishing a purpose; producing the intended or expected result. • High-performing organizations are efficient and effective. What are managerial and Organizational functions? • Organizational functions – are activities performed within an organization. – are called functional areas of management such as • production, • finance, • Marketing, • Personnel, etc… – each functional area may have a number of sub-activities. • Managerial functions – are activities performed by managers. – are • Planning, • Organizing, • Staffing, • Directing (leading), • Controlling • Organizational functions differ from organization to organization depending upon their nature while management functions are common or the same to all. Universality of management – Management is applied to all type of organization. – Management is universal activity or universal in its nature because • Management functions performed by every manager are the same. – Universality of management is the applicability of the principals of management in all kind of organizations, and in different countries of the world. Does Management an Art or a Science? – Science • is a systematically organized knowledge • is acquisition of knowledge – Art • is the application of knowledge that constitutes (comprises) science. • Management – is both or a blend of a science and an art. – as an acquisition of organized knowledge is a science, and as a practice/ application of knowledge is an art. • A manager to manage must have both the knowledge of science and art. – without science means • without the knowledge of management principles and concepts • trust/depending on luck, intuition or past activity. – without art means • managing by memorization of principles and neglecting practical reality – Successful executives • combine both the science and the art of management as they practice their craft Individual assignment • Critically assess – How management functions are exercised / practiced in your organization. – Why every body a manager of him/her self? (Time allotted 2 weeks) 2.What is HRM? Refreshment • Backwardness is nothing but a result of undeveloped human resource, and underdevelopment is the failure to use the human resources. (Tendon) • The success of any organization depends on the quality of its human resources. Therefore; –Develop human Resource continuously; –Put always the right man/ woman at the right place/ position at the right time. 1. Why staffing? • Organizations require people who have different knowledge, skills & experiences to fill various positions to attain organizational objectives. • Hence selection of the right person & placement at the right position are the main aspects of staffing. • Staffing – has greater importance in the recent years due to • increase in size of business, • advancement of technology, • complexity of human behavior, etc. Meaning and definition of Staffing • Staffing – filling the organizational structure with the necessary HRs – is the function of manning the organization structure and keeping it manned. – selecting and placing the right people at right position – the process of obtaining & maintaining capable & competent people to fill positions in organizational structure. – the process of identifying HR needs, procuring the necessary employee, training, utilizing and separation of these employees. • The main purpose of staffing is –to put right man/ women on right job • i.e. square pegs in square holes and round pegs in round holes. –Staffing helps in placing right men at the right job • Always Remember – To make your organization successful and effective ‘put always the right people at the right place/ position at the right time’. Staffing Functions • Staffing serves to obtain essential HR to an organization • The staffing function enables an organization – to – to – to – to attract, develop, maintain, and utilize efficient and effective workforce. • Staffing Process / steps involve: 1. 2. 3. 4. 5. 6. 7. 8. Manpower requirements (plan) Recruitment and Selection Placement Orientation (Induction and socialization) Training and Development Remuneration Performance evaluation Promotion and transfer • Manpower requirements – The first step in staffing – is planning the manpower required to match them with the job requirements and demands. – involves forecasting and determining the future manpower needs of the concern. • Recruitment – invites and solicits applications according to the invitations made to the desirable candidates. • Selection – is the screening step of staffing – is in which the solicited applications are screened out and suitable candidates are appointed as per the requirements. • Placement – takes place by putting right man on the right job. • Orientation (Induction and socialization) – the appointed candidates are made familiar to the work units and work environment through the orientation programs. • Training and Development – given to the workers in order to develop and grow them within the concern. – given according to the nature of activities and scope of expansion in it. • Remuneration – is compensation provided monetarily to the employees for their work performances. – is given according to the nature of job: • skilled or unskilled, physical or mental, etc. • Performance Evaluation – assessment done to evaluate and supervise different work units in a concern. • Promotion and transfer – shifting the workers to different work units and branches of the organization. 3. Concepts, Nature and Scope of HRM What is Human Resource? • Of all resources, manpower is the only resource which doesn’t depreciate with the passage of time. – Human resource is the only resource which gains more knowledge and skills in the long run, where the other resources goes depleting. • Without HR – It is impossible for organizations to accomplish their objectives & utilize other resources. – other resources remain futile (useless, fruitless). – organizations are said to be lifeless. • "Human resource is the most important resource of an organization which deserves special treatment, respect & dignity." (Robert Own) • Human resource (HR) defined as: – from the organizations point of view, it represents: • “people at work.” – according to national view point, • “the knowledge, skills, creative abilities, talents and aptitudes obtained in the population.” – defined as the total knowledge, skills, creative abilities, talents and aptitudes of organization’s work force, as well as the values, attitudes, and beliefs of the individuals involved. – represent the quantitative and qualitative measurement of the workforce required in an organization. – also called human assets or human capital Characteristics/ features of HR • HRs are the most important element in an organization. – effective utilization of all other resources depends up on the quality of HRs • HRs are heterogeneous. – Consist of large number of individuals having a unique personality, different needs, attitudes & values. • HRs are dynamic and behave differently. – react to the same situation quite in different ways. – even the same individual may behave differently at two different parts of time. • It is very difficult to predict human behavior. – HRs of an organization are the product of biological inheritance & interaction with the environment. • HRs have the greatest potential to develop & grow if provided the right climate. • HR includes all dynamic components of all the people at all levels in the organization. – personnel means employees working in the organization. What is Human Resource Management (HRM)? • Human Resource Management (HRM) – managing HR in an organization. – is a set of policies, practices and programs designed to maximize both personal and organization Goals. – is the part of management concerned with people at work and the relationships with the organization. • brings men & women together who make up an enterprise. • is the process of binding people and organizations together so that the objectives of each are achieved. • Human Resource Management – is the field of Management which has to do with planning, organizing & controlling the functions of procuring, developing, maintaining and utilizing labor force, such that the objectives • for which the company is established are attained economically & effectively ; • of all levels of HRs are served to the highest possible degree; and • of the society are duly coincided & served. (Michael Jucius). • HRM –is “the planning, organizing, directing and controlling of the procurement , development , compensation , integration, maintenance and production of HRs to the end that individual, organizational and societal objectives are accomplished”. (FLippo, 1980) • HRM is similar to the nerve system of the human (our) body. – The nerve system is not an adjunct/ additional to the body but it is inherent/inbuilt in the whole body and intimately/ closely associated with every movement. – Similarly, HRM is not an extraneous element to the organization structure. It is embedded in the structure, and inherent in its functioning and general part of the process of management itself. • HRM can’t be separated from basic management function. Objectives of HRM • Personal objective – relate to the satisfaction of the personal objectives of the members of an organization through monetary and non monetary devices. • Organizational objective – to create a work force with the ability and motivation to accomplish the basic organizational goals. • Societal objective – the satisfaction of social and community objectives, such as serving the customers honestly, using resources to the society benefit, being responsive to the needs & challenges of the society. providing a higher standard of living in the community, bringing comfort and happiness to society, Importance/ significance of HRM • Effective management of HR helps to improve the quality of work life. • The significance of HRM can be seen at four levels: – at – at – at – at Professional level Corporate/ organizational level Social level & National level • The factors those make HRM more significant in recent decades are: – Increase in size & complexity of organizations • Multinational corporations employing millions of persons; Globalization of business – Rapid technological developments • like automation, computerization, etc. – Rise of professional and knowledge workers – Increasing proportion of women in the workforce. – Rapidly changing jobs and skills requiring long term manpower planning. – Rising costs and shortage of highly trained labor. – Growth of powerful nationwide trade unions. – Widening scope of legislation designed to protect the interests of the working class. – Revolution in information technology that might affect the workforce. – Growing expectations of society from employers. Functions of HRM • The functions of HRM categorized into. • Procuring • Developing • Compensating • Integrating and • Maintaining an efficient workforce. • Procurement functions – is concerned with securing and employing the right kind and proper number of people required to accomplish the organizational objectives. – Consists of the following activities • Job analysis • Human resource planning • Recruitment • Selection • Placement • Induction/ Orientation • Development function –is the process of improving the knowledge, skills, aptitudes and values of employees to perform the present and future jobs more effectively. –Comprises the following activities • Training and development • Career planning • Performance and potential appraisal • Compensation functions –is providing equitable and fair remuneration to employees for their contribution to the attainment of organizational objectives. –Consists of the following activities • Job evaluation • Wage and salary administration • Bonus • Integration function – Process of reconciling the goals of the organization with those of its members. – Involves • • • • • • • • • Motivating employees Providing job satisfaction Workers participation in management Handling employees grievances Conflict resolution Collective bargaining Developing sound human relations Employee counseling Improving quality of work life, etc • Maintenance function – concerns with protecting and promoting the physical and mental health of employees. – are done by • providing fringe benefits – Housing – Medical and educational facilities – Conveyance/ transport facilities, etc • arranging social security measures – – – – – – Provident fund Pension Gratuity / perk Maternity benefits Injury/disablement allowance Group insurance, etc • designing health, safety and welfare measures. • HR records and researches Group Assignment • Taking one of the group members organization, critically evaluate how HRM Practices are exercised in the organization. (Time allotted 2 weeks) Chapter Two What is HR Planning? Decision –The wrong decision at the wrong time = disaster. –The wrong decision at the right time = mistake. –The right decision at the wrong time = un acceptance. –The right decision at the right time = success. • When planning for one year, there is nothing better than planting a grain; When planning for ten years, there is nothing better than planting a tree; But when planning for a life time, there is nothing better than planting men. (Guanze, Chinese Philosopher) “Failing to plan is planning to fail.” • The six Planning questions: – The ‘what’ • or what to do • the goal that we want to achieve – The ‘when’ • or when to do • is the question of timing to achieve the goal. – The ‘where’ • or where to do • the place at which the plan is put into practice. – The ‘who’ or • who does it or by whom it is done • the individual/ unit supposed to undertake specific tasks – The ‘how’ • or how it is done • the strategy/ method or steps for achieving the goal – The ‘how much’ • or how much is required to do • concerns with the expenditure of resources essential to reach goals • resources required to accomplish this goal Well plan is half done. 2.1. Concepts of HR Planning • The success of organization depends largely on the quantity and quality of its human resources. • No organization can be successful in the long run without having the right number & the right kind of people doing the right job at the right time. • Therefore, procurement of the right kind & right number of personnel is the first operative function of HRM. • Before selecting the right man for the right job, it is necessary to determine the quality and number of people required in an organization, – i.e. HR planning or manpower planning. • Planning – is Preparing in advance – is the basic function of management. – is a preparatory step. • It is rightly said that “Well plan is half done”. • Human Resource Planning (HRP) is –the starting point in the process of staffing –an integral part of corporate planning. –refers to the determination in advance the number and quality of people to be employed. Why HR planning is needed? • HR planning is needed because • there are infollows & outfollows of HR in organization due to several reasons Inflow New recruit Promotion Transfer Outflow Promotion Transfers Retirements Terminations Resignation Deaths HR planning is needed – rapid technological changes make knowledge & skills get obsolete. – the presence of fast change in technology & the needs of workers – Scarcity of personnel in some specialized areas – high expenses involve to hire, develop & maintain employees, – need of skilled & qualified manpower to carry out the work of an organization – labor turnover & absenteeism among workers – to meet the requirements of expansion & diversification programs of the organization. – to cope with the future uncertainties & – to identify areas of surplus personnel and then to transfer it to other departments. Purposes and importance of HR Planning • The main purposes are: – – – – – – To expand the operation of the organization To reduce labor cost To utilize HRs efficiently and effectively To avoid disruption in operation For effective employee development program To maintain good industrial relation • The main importance are: – – – – – – Uncertainty Reduction Objectives achievement Environmental adaptation Effective and efficient utilization of HRs HR Development Control Factors to be considered in HR planning • HR planning is accomplished through the analysis of – internal factors/ environment • current & expected skills needs, vacancies and departmental expansions & reductions – External factors/ environment • Labor market, government regulations, labor unions, etc. – As a result of these analysis plans are developed to execute other steps. • Manpower planning considers two aspects 1. Quantitative aspect • determining the number of employees required in the future period of time • Analyzed based on – Work load analysis » The total work load of each department – Work force analysis » All the existing workers are not likely to be available for work throughout the year, due to absenteeism and turnover. 2. Qualitative aspect • Skill analysis • The quality of manpower required varies from job to job • determined only after determining the job requirement • Human Resource Planning (HRP) involves three distinct activities. 1. Evaluating the existing work forces • assessing current HR of the organization (HR inventory), 2. Forecasting the future needs of HR • assessing future needs (forecasting personnel requirement) 3. Ensuring the availability of workers when needed. • assessing ways to fill the gap (planning to procure new employees). Process of HR planning –It is assessing HR requirements. –The major stages involved in HR planning are: 1. Analyzing organizational plans –analyzing the organization objectives & strategic plans 2. Forecasting demand and supply for HRs • Forecasting demand for HRs – anticipate the future needs for HRs in the organization – Based on • corporate & functional plans and • future activity levels, – Techniques for forecasting • Managerial judgment – Experienced managers estimate the manpower requirements for the respective departments • Work-study method – is time & motion study used to analyzed & measure the work being done • Ratio-trend analysis – Ratios are calculated on the bases of past data • Mathematical models – Models express relationship between independent & dependent variables • The future demand for HR depends mainly on factors, such as: – Employment trends • trends can be judged by comparing & analyzing the staff during the past five years – Replacement needs • depends on death, retirement, resignation and termination of employees • assessed based on past experience & retirement situation in the future – Productivity • improvement in productivity influences manpower requirements • better utilization of existing manpower is one method of securing gains on productivity – Absenteeism – Expansion and growth • company’s growth plans & expansion programs should be carefully analyzed • Forecasting supply of HRs – Every organization has two sources of supply of HRs • internal & • external – To judge the internal supply of HRs in future, HR inventory or audit is necessary – The main components of HR inventory are: • Head count • Job family inventory • Age inventory • Skill inventory 4. Estimating manpower gaps • Net HR requirements are identified by comparing demand forecasts & supply forecasts. 5. Action planning • Once manpower gaps are identified, plans are prepared to bridge there gaps. 6. Monitoring & control • Once the actions plans are implemented, the HR structure & system need to be revised and regulated 2.2. Job analysis Job analysis is – examining and appraising jobs and skills. – assessing total jobs within the organization and the required skills & behavior necessary to perform these jobs. – is the process of determining the duties and skill requirements of a job and the kind of person who should be hired for it. • Job analysis is needed when –an organization is formed. –new jobs are created in the organization –jobs are changed (change in nature of jobs), because of new technologies, working methods, procedures or systems. Components of job analysis Job analysis has two components. 1. Job specification and 2. Job description • Job description –is also known as Position description –the statement depicting/ describing • what the job holder does; • how he does, and • why he does a particular job. –Lists the duties of a job; job’s working condition, and the tools, materials and equipments used to perform it. Contents of job description • A job description normally contains the following information – Job identification • Job title, code number of the job, department or division where the job is located. • It also reveals the relationship of the job with other jobs. – Job summary • It describes the contents of a job in terms of the activities or tasks performed. – Job duties and responsibilities • It is the heart of job description. • It describes the duties performed along with frequency of each major duty. – Working conditions • The physical environment of the job is described in terms of heat, light, noise level, dust and fumes, etc. – Social environment • Size of work group and inter-personal interactions required to perform the job are given. – Machines, tools and equipment • The names of major machines, equipments and materials used in the job are described. – Supervision • The extent of supervision given or received is stated in terms of number of persons to be supervised along with their job titles. – Relation to other jobs • The jobs immediately below and above are mentioned. • It provides an idea of vertical work flow and channels of promotion. • It also indicates to whom the jobholder will report and who will report to him. Guidelines for preparing job descriptions • Hints useful in writing a job description: – Give a clear, concise and readily understandable picture of the whole job. – Describe in sufficient detail each duties and responsibilities. – Emphasize accuracy, brevity and simplicity rather than an elegant style. – Use active verbs, • e.g. type letters, sort out mail, distribute mail, train workers, etc. before each statement – Avoid statement of opinion – Examples of work performed may be quoted – Indicate the extent of supervision received and given – Ensure that a new employee can understand the job by reading the job description. • Job Specification – is also called position specification or employee specification – is a statement which tells the minimum acceptable human qualities required which help to perform a job. – is a written statement of • educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. • describes the acceptable human qualities. 2.3. What is Job Design? • Job design follows job analysis –the next step after job analysis • A well defined job encourages – feeling of achievement and – a sense of high self esteem among the employees. • Work design is a part of overall work planning. • Job design – aims at outlining and organizing tasks, duties and responsibilities into a single unit of work for the achievement of certain objectives. – refers to the what, how much, how many and the order of the tasks for a job/s. – is a systematic organization of job-related tasks, responsibilities, functions and duties. – makes the job look interesting and specialized. – Establishing departments • Areas/ factors mostly fine tuned are: – Checking the work overload. – Checking upon the work under load. – Ensuring tasks are not repetitive in nature. – Ensuring that employees do not remain isolated. – Defining working hours clearly. – Defining the work processes clearly. • If jobs are not well designed, they result into building stress within the employees. Methods of job design • The popular methods used to improve the motivating potential of jobs are 1. Job Rotation 2. Job Enlargement 3. Job Enrichment Job Rotation Job Simplification JOB DESING Job Enrichment Job Enlargement • Job rotation – implies the shifting of an employee from one job to another without any change in the benifits. – main advantage • it relieves the employee from the boredom and monotony of doing a single task. • The employee gets some variety of work, workplace and peers. • It also helps to broaden the knowledge, and skills of an employee. • Job enlargement – is the process of increasing the scope of a job by adding more tasks to it. • related tasks are combined. – make an employee greater use of his mind and skill due to variety of tasks. – helps to increase interest in work and efficiency. – is also a method of training and developing more versatile employees, but it does not increase the depth of a job. – Enlarged jobs require longer training period as there are more tasks to be learned. • Job enrichment – providing the worker greater autonomy for planning and controlling his own performance. – is based on the assumption that in order to motivate employees, the job itself must provide opportunities for achievement, recognition, responsibility, advancement and growth. – makes a job is more interesting and challenging thereby removing the functions of narrow specialization. Job enrichment Vs job enlargement – Job enlargement • involves horizontal loading of the job by adding a variety of operations which the jobholder will perform. – Whereas, Job enrichment • consists of a vertical loading of the job so that the jobholder himself controls the planning and execution of his job. – In job enlargement, • employee is given more work at the same level of responsibility – Whereas, in job enrichment an • employee is given greater autonomy and responsibility, Job dimensions • The five core job dimensions used to describe/ design any job are: – Skill Variety • the degree to which a job requires different skills and talents. – Task identity • The extent to which piece of work to be done is required for completion of the job. – Task significance • The degree to which the job has a substantial impact on the work and lives of others both inside and outside the organization. – Autonomy • The degree to which the job provides freedom, independence and discretion to the individual in scheduling the work and in deciding the procedures to be used to do the job – Feedback • The degree to which the job provides the individual with clear and direct information about job performance and outcomes. Factors affecting Job Design – A well designed job will make the job interesting and satisfying for the employee. • increases performance and productivity. – If a job fails to appear interesting, leads to employee dissatisfaction, • it means the job has to be redesigned based upon the feedback from the employees. – factors those affect a job design can classified under three heads. • Organizational Factors • Environmental Factors • Behavioral Factors • Organizational factors – that affect job design can be • • • • work nature or characteristics, work flow, organizational practices/culture, and ergonomics • Environmental factors – include both the internal as well as external factors. – They include factors like • employee skills and abilities, • their availability, and • their socio economic and cultural prospects. • Behavioral factors – are human factors for ensuring productivity at workplace. – include the elements like • • • • autonomy, diversity, use of skills and abilities, feedback etc. Job redesigning • Job Redesign – is restructuring the elements including tasks, duties and responsibilities of a specific job in order to make it more encouraging and inspiring for the employees or workers – The process includes • revising, analyzing, altering, reforming and reshuffling the job-related content and dimensions – The main objective of conducting job redesigning is • to place the right person at the right job and get the maximum output while increasing their level of satisfaction. 2.4. What is Job Evaluation? • Job Evaluation – is a process of determining the relative worth/ value of a job. – is helpful for framing compensation plans by the personnel manager. – is the outcomes of Job Analysis Job Analysis The process of obtaining all pertinent facts about a job Job Description Job Specification A statement of the minimum qualifications required for a job A factual statement of tasks and duties involved in a job Job Evaluation The process of ascertaining the relative worth of a job • Advantageous of Job evaluation to an organization: – Reduction in inequalities in salary structure • It is found that people and their motivation is dependent upon how well they are being paid. – Specialization • Because of division of labor and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. – Relevance of new jobs • Through job evaluation, one can understand the relative value of new jobs in a concern. • Helps in selection of employees – The job evaluation information can be helpful at the time of selection of candidates. • Harmonious relationship between employees and manager – Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized. • Standardization – The process of determining the salary differentials for different jobs become standardized through job evaluation. – helps in bringing uniformity into salary structure. Difference between • Job analysis and Job evaluation • Job analysis – is the process of identifying and determining in detail contents of a particular job. – is conducted of the job, and not of the person. • Job evaluation – specifies the relative value or worth of each job in an organization. • Job evaluation and performance appraisal. • In job evaluation, worth of a job is calculated • In performance appraisal, the worth of employee is rated.