Professional Documents
Culture Documents
Table of Contents
Introduction............................................................................................................................2
LO1- Understand the importance of business processes in delivering outcomes based upon
business goals and objectives.................................................................................................3
LO1-1.1: Evaluate the interrelationship between the different processes and functions of
the organisation......................................................................................................................3
LO1-1.2: justify the methodology to be used to map processes to the organisations goals
and objectives.......................................................................................................................10
LO1-1.3 evaluate the output of the process and the quality gateways.................................11
LO2-2.1: Analyse the reason for Human Resource Planning in Organisation:..................12
LO2-2.2: Stages of Human Resource Planning in Organisation:........................................15
LO2-2.3: Compare Recruitment and Selection Process in Two Organisation:...................17
LO2-2.4: Effectiveness of Recruitment and Selection Process in Two Organisation:.........25
LO3-3.1: Link between motivational theory and reward:....................................................27
LO3-3.2: Process of Job evaluation and other factors determining pay:...............................34
LO3-3.3: Effectiveness of reward system in different context:.............................................37
Recent changes to reward.................................................................................................39
Reward objectives.............................................................................................................39
Views on reward system effectiveness...............................................................................40
LO3-3.4: Methods that used by organization to monitor performance:..............................41
LO4..........................................................................................................................................44
Reference:.............................................................................................................................51
Page 1
Introduction
Have you ever heard IKEA before? Im sure you are familiar with this name even though you
may not visited before. Why when people talk about home furnishing normally you will think
of IKEA? Have you ever thought what made IKEA so successful today? Well, if you simply
think that just because of IKEA is a well-known global brand and a lot of people just blindly
follow, Im certain that youre wrong.
This might be a relevant question to you. If youre a customer, would you be willing to pay
higher prices for the same thing? I bet you wouldnt do that. There are many home furnishing
retailers in this world, but what made IKEA became the worlds largest furniture retailer with
more than 235 stores in 24 countries today? No other reason, low prices are one of the
foundation stones of the IKEA concept and help to make customers want to buy from IKEA.
IKEA is a privately held, international home products company that designs and sells readyto-assemble furniture such as beds and desks, appliances and home accessories. The company
is the world's largest furniture retailer. Founded in 1943 by 17-year-old Ingvar Kamprad in
Sweden, the company is named as an acronym comprising the initials of the founders name
(Ingvar Kamprad), the farm where he grew up (Elaterid), and his home parish. IKEA has 300
home furnishing superstores in 35 Countries and was visited by some 583 million shoppers.
IKEAs low priced elegantly designed merchandise displayed in large warehouse stores,
generated sales of $21.2 billion in 2008, up from 4.4 billion in 1994. The fledgling company
sold fish, charismas magazine, and seeds from his family farm. His first business had been
selling matches, the enterprise Kamprad purchased them wholesale in 100 box lots and then
resold individually at a higher mark up.
Page 2
LO1- Understand the importance of business processes in delivering outcomes based upon
business goals and objectives
Business Process
A collection of related, structured activities/tasks that produce a specific service or product
for a particular customer is referred to business process/business method.
Page 3
LO1-1.1: Evaluate the interrelationship between the different processes and functions of the
organisation
Executive Summary:The assignment describes the way in which IKEA. Conduct their operations in India and in
International markets. The assignment covers the following topics:
1. Aims and objectives affecting the structure, culture and business processes of IKEA
2. Areas of responsibilities and operational plan of FURNITURE APPLIANCES
3 .Quality control systems and methods to monitor appropriate system to improve
organisational performance at IKEA
4. Health & safety policies at IKEA.
The Purpose and aim of the assignment is
To create new plans which would help IKEA to improve their performance in local
business processes.
To give an understanding of how the operational planning skills can give a new looks
so that it leads to the development of the organisation.
To take into account how quality is of core importance in introducing new quality
Page 4
INTRODUCTION: IKEA is the Indias largest paint company in the public sector and a quoted company on the
stock exchange at BSE Sensex (code 500820) being its benchmark, which deals in
manufacturing decorative coatings which means that they are into secondary sector who deals
into manufacturing the output of the primary sector. FURNITURE APPLIANCES operates
in 22 countries and has 30 paint manufacturing facilities in the world servicing consumers in
over 65 countries.
IKEA. Has a combined turnover of 830 million US dollars with its strong presence in the
MIDDLE EAST subcontinent, south East Asia, Far East, South pacific Caribbean, Africa &
Europe... Together the group has 30 manufacturing unit globally.
Mission statements are formal declarations of underlying purpose. They say what an
organisation exists to do, Viva Books Private Limited, (2009) Business essential:
Management (1st edition) BPP learning media: London. in relation to the chosen
organisation i.e. IKEA, they have broken down their mission statement in 3 modified steps
and they are as follows:
Missionasstatement
To provide FURNITURE APPLIANCES
per demand, ensuring desired level and
quality of customer (dealer) service, continued availability of the right product mix
of right quality at the right time.
Vision
to become one of the top five FURNITURE APPLIANCES companies worlds wide
by leveraging in the higher growth emerging markets.
Trust Openness
Commitment
Values
Customer satisfaction
Value for money
Quality Growth
Orientation
Integrity
Figure 1.1 the Mission, Vision, & Values of IKEA (www.FURNITURE APPLIANCES .com
Page 5
Targeting a rapid
growth by 10%
in the overseas
market (Egypt,
Carribean)
To introduce a
new innovative
product each
year (R&D
department)
To cut down on
inventory and
Reduce the
number of
rejection level in
making a
product
Business
objectives
To increase sales
in national 2530%&
international
operations 22
-27%.
To improve CRM
in the year 2012
Figure 1.2 Business objectives of IKEA for the year 2011-12 (www.FURNITURE
APPLIANCES .com)
ORGANISATIONAL STRUCUTRE OF IKEA: Wilson and Rosenfeld (1990, p.215) says, The established pattern of relationships between
the component parts of an organisation, outlining both communication, control and authority
patterns. Structure distinguishes the parts of an organisation and delineates the relationship
between them. Organisations are structured in a variety of ways, dependant on their
objectives and culture. The structure of an organisation will determine the manner in which it
operates and its performance. Structure allows the responsibilities for different functions and
processes to be clearly allocated to different departments and employees.
The management of IKEA has adopted a newer organisational structure from the year 2007
leaving behind their tall & formal hierarchical structure where the authority was centralised
and bureaucracy was presented. But it is now the management who has adopted a more
decentralised structure and a flatter (functional) structure which is more flexible in working
and it (functional structure) is arranged according to what each section or department does.
By having this type of organisational structure the problem of communication in the form of
feedback from employees is resolved, also the structure allows cross functioning of
Page 6
department which helps in better decision making as well as valuable inputs from the
employees are taken into consideration.
The last but not the least it allows the organisation to delegate task to the lower level that are
willing to take responsibilities and wants to achieve the goals of the firms, which makes the
organisation best suited.
The figure 1.3 and 1.4 below shows both earlier and the recently adopted organisational
structure of IKEA.
Figure 1.3
Page 7
Chief Executive/MD
States /INTER STATE Management representatives
Chief GM Operations
DGM Accounts
DGM Logistic
DGM Purchase
DGM Admin
GM FURNITURE Quality assurance
EDP Manager
A business service represents the added value that an organization delivers to its stakeholders. We can make a difference between internal and
external services that a business provides: Internal services mean the added value that is delivered within the domain in which the service
belongs to. External services represent the added value that is delivered to other stakeholders (i.e. customers). A business function is an area that
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the organization wants to pay attention to (e.g. by putting energy into, structurally committing resources to etc.) in order to support its business
goals. A business function can therefore be positioned as a grouping of internal behavior based on a certain criteria (for example location (same
department), communication, required skills, shared resources and shared knowledge). A business function represents a part of the added value
of on organization.
A collection of related, structured activities/tasks that produce a specific service or product for a particular customer is referred to business
process/business method. A business process can be constructed from sub processes or activities. A business process is triggered by one or more
business events. Every activity is part of a business function.
A typical organization has its functions as Administration, Production, Finance & Accounts, Human Resources, Sales and Marketing, Research
and Development etc. Each of these functions needs to work together so that the whole organisation every departments possess same aims and
objectives and contributes towards achieving organizational goal.
As we have defined process as an activities or set of activities of an organization, it is clear from the definition that process of an organization
and functions are related. And each functions of the organization are also related to each other. For example finance prepares a budget for the
organization with the consultation of all functional managers then each department has its own target for the year. Based on the target production
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unit produces the services or goods, after that marketing department has the responsibility to sell the targeted products or services as desired.
And human resource department employ personnel to meet the organizational goal. So from here also we can see that every department is
somewhat linked with each-other.
LO1-1.2: justify the methodology to be used to map processes to the organisations goals and objectives
Process Map
A process map is an instrument to visually describe how the work flows. It can also be referred as a communication tool or planning tool that
helps to manage the organization.
Inputs, Outputs, Activity steps, Decision points, and Functions are the tool for mapping a process. It gives us certain answers like: what is
happening, where it is happening, when it is happening, who is doing it and how inputs and outputs are handled and distributed. So process
mapping basically is a flow chart of an organizational activity. With the help of process mapping we can readily identify what is going on within
the organization at a given point of time and if necessary we can modify the course of action based on the organizational goal and objectives.
Process mapping means creating a model that shows the relationships between different activities, people, data and objects involved in the
production of a specified output. I normally document business processes using the IDEF methodology (The Integrated Definition methodology
is a suite or family of methods that supports a paradigm capable of addressing the modeling needs of an enterprise and its business areas) that
was developed in 1994 by the US air force. It is simply is an accepted industry standard, the advantages of using IDEF are that it is a well
published standard that customers can get from the internet. This methodology is easily assessable and proven as a strong industry standard
supported by most process modeling tools.
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LO1-1.3 evaluate the output of the process and the quality gateways
This type of evaluation is performed while a project is being implemented, with the aim of improving the project design and functioning while in
action. An example given in monitoring and evaluating urban development programs, a handbook for program managers and researchers by
Michael Bamberger, describes a monitoring study that, by way of rapid survey, was able to determine that the amount of credit in a micro credit
scheme for artisans in Brazil was too small. The potential beneficiaries were not participating due to the inadequacy of the loan size for their
needs. This information was then used to make some important changes in the project. Bamberger defines it as an internal project activity
designed to provide constant feedback on the progress of a project, the problems it is facing, and the efficiency with which it is being
implemented.
An evaluation studies the outcome of a project changes in income, housing quality, benefits distribution, cost-effectiveness with the aim of
informing the design of future projects. An example from monitoring and evaluating organizational process for its performance describes an
evaluation of a cooperative program in El Salvador that determined that the cooperatives improved the lives of the few families involved but did
not have a major impact on overall employment.
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Bamberger describes evaluation as mainly used to help in the selection and design of future projects. Evaluation studies can assess the extent to
which the project produced the intended impacts increases in income, better housing quality, and the distribution of the benefits between
different groups, and can evaluate the cost-effectiveness of the project as compared with other options
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1.
2.
What type of employees as far as skills and abilities does the Company have?
3.
4.
HR planning makes the organization move and succeed in the 21st Century that we are in. Human Resources Practitioners who prepare the HR
Planning programmer would assist the Organization to manage its staff strategically. The programmer assist to direct the actions of HR
department.
The programmer does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve
the objectives as well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part
of Management information system.
HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right
time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of
workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very
critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems.
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Inadequacy of HR Planning
Poor HR Planning and lack of it in the Organization may result in huge costs and financial loses. It may result in staff posts taking long to be
filled. This augment costs and hampers effective work performance because employees are requested to work unnecessary overtime and may not
put more effort due to fatigue. If given more work this may stretch them beyond their limit and may cause unnecessary disruptions to the
production of the Organization. Employees are put on a disadvantage because their live programmers are disrupted and they are not given the
chance to plan for their career development.
The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part
of the Organizations budget, workforce planning enable the Organization to provide HR provision costs. When there is staff shortage, the
organization should not just appoint discriminately, because of the costs implications of the other options, such as training and transferring of
staff, have to be considered.
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over, age and sex groupings, training costs and absence. Based on this information, one can then be able to predict what will happen to HR in the
future in the Organization.
HR Resource Plan
Here we look at career Planning and HR plans. People are the greatest asserts in any Organization. The Organization is at liberty to develop its
staff at full pace in the way ideally suited to their individual capacities. The main reason is that the Organizations objectives should be aligned
as near as possible, or matched, in order to give optimum scope for the developing potential of its employees. Therefore, career planning may
also be referred to as HR Planning or succession planning.
Are we making use of the available talent we have in the Organization, and have we can enough provision for the future?
b)
Are employees satisfied with our care of their growth in terms of advancing their career?
Assignment of individuals to planned future posts enable the administration to ensure that these individuals may be suitably prepared in advance.
Auctioning of Plan
There are three fundamentals necessary for this first step.
1) Know where you are going.
2) There must be acceptance and backing from top management for the planning.
3) There must be knowledge of the available resources (i.e.) financial, physical and human (Management and technical).
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Once in action, the HR Plans become corporate plans. Having been made and concurred with top management, the plans become a part of the
companys long-range plan. Failure to achieve the HR Plans due to cost, or lack of knowledge, may be a serious constraints on the long-range
plan
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Walk-ins
Employee referrals
Advertising
Websites
Professional/ Educational/Association
E- recruitment
Word of mouth
Cost
Time taken
Labor market
Mobility of labor
Legislation on gender, race, disability discrimination.
Methods of recruiting
I.
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Internal
II.
III.
Job posting
Promoting & transfer
Union through assigning
Retired employees & dependents of deceased
Employee referrals
External
Advertising
Employment agencies
College recruits
Employee referrals
Walk-ins
E-recruitment
Alternative ways
Leasing employees
Overtime
Part time workers
Temporally workers
Out sourcing
Selection is the process of picking individuals who have relevant qualification to fill jobs in an organization.
Selection Process
Concerned with identify the best candidates or candidates for job form among the pool of qualified applicants developed during recruiting
process.
Steps in selection
Medical exam/drug test
Supervisor/team interview
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Completion of application
1. As first Tesco looks for Internal Talent plan to fill the vacancies.
2. This process that lists current employees that looking for a move either at same level or
on promotion.
3. If there isnt any suitable person internal management develop a training and
development program.
4. And use internal E-recruitment method to advertises post in Tesco intranet.
5. If external recruitment methods used the advertise in their public web site www.tescocareers.com
6. External vacancy board.
7. Made applicant online for managerial positions.
8. Chosen applicants must have an interview followed by attendance center.
9. People interested in store-based jobs with Tesco can approach store with their CV /
register through job center.
10. The store prepares a waiting list of not selected applicant to make a pool of suitable
recruits in order to call if another vacancy occurs.
11. For harder to fill or more specialist jobs, such as bakers and pharmacists external
recruitment methods used. Like its public web site & offline media, television, radio or
advertising Google or in magazines such as appointment journal.
Selection process
Performance appraisal
Job analysis
Training & development
Compensation
Page 22
Unilever
Recruiters qualification
Recruiting is the process of finding & attracting capable applicants for employment. The process
begins when new recruits are required & ends when their applications are submitted. The result
is a pool of applicants from which new employees are selected.
Manager becomes involves in this process. However in large organization, like the Unilevers
Specialists are often used to find & attract capable analyst they are called recruiters.
First, Unilever is such a big organization that requires huge man power every year for its always
boosting operations in various level and arena. However for common business operations they
need
Three type of manpower
1. Fresh graduates as knowledge worker,
2. Specialist experienced people for special purpose
3. People for Skilled and labor based events
So in our discussion we will focus on all the three types.
Fresh graduates as knowledge worker
Commonly we discuss and learn major about this level recruitment and selection. The fresh
graduates recruitment is in fact the main and major recruitment event for Unilever.
From across the country they get people for their recruitment. The universities in the country
provide the people to be knowledge worker in big organizations like unilever and such. For this
they highly suit the business graduates Passed from reputed business school or institutes both
from country and from abroad.
The discussion is now designed as to the following four terms:
1. Personnel planning and vacancy announcement
2. Nature of Application form
3. Recruiters qualification
4. channels of recruitment
Page 23
2. Advertising
3. Educational institutions & Professional associates
International recruitment
Employee referrals
For lower level workers, Unilever follow the employee referrals procedures. This is the
procedures when existing employees refer one new and the new is considered to be further
judgment.
Advertising
UBL next to employee referrals in fact for fresh graduates majorly follow the advertisement
procedure for recruiting purposes. They advertise in the reputed English and Bengali National
papers. They also use the internet for online application.
Educational institutions & Professional associates
More over the organization takes its manpower from the universities and educational institutions
across the country. The nationwide universities and its important institutes provide the potential
graduates as the employee of the organization.
International recruitment
Sometimes, especially in importance of cases international recruitment occurs in ULB. However
such rare events happen if the candidate stays in abroad or are working in international company
on foreign land.
Internal recruitment channel
Current employees are a major source of recruits for all but entry- level positions of unilever
Bangladesh ltd... Whether for promotions or for lateral job transfers, internal candidates already
know the already informal organization and have detail information about its formal policies. In
fact for unilever this short of recruitment is occurred only with especial purpose experienced
employee recruitment.
Recruitment: constraints and challenges
Recruiters face such common constraints which are:
a. Biasness:
Page 25
Most of the time, the organizations employers try to appointment their relatives, familiar person.
b. Competition of talent
There is a lack of vast talent people in Bangladesh for the special task. The potential job
applicants most of the time cant meet up Unilever requirement. Few talent guys who has already
appointed with other multinational company
d. Job requirement
People with greater experience usually require a higher level of job. In our country, there are vast
population but they are not so skilled in working with hard labor.
SELECTION PROCESS IN UNILEVER
Selection is the process of select the best candidates for the job by using various tools and
techniques. In our country, recruitment and selection process work simultaneously. Those are
joined term as employment function of the organization and this employment function is stated
here for Unilevers practices.
Reception of application
After accomplishing the recruitment process, Unilever go to the selection process where they
start the process with the reception of application form filled up through internet online form.
After scrutinizing the data, they select applications for written test.
Employment test
This written test measures the candidates
1. Analytical ability
2. Computation ability
3. Verbal skill
4. Written skill
5. General knowledge
More above 65% marks ensures applicants pass.
Assessing candidate through interview
Page 26
Mainly three steps are followed in the selection procedure. In the first stage the candidates are
invited for a viva with sales and training manager, Dhaka in his Gulsan office.A human resource
manager also exist there. In this viva the candidates situation handle ability is measured.
Second phase:
It is the viva with the general sales and operation manager (GOSM), and trade marketing
manager .in this stage individual skill is measured. The question tries to measure out the fitness
of the candidate for the post.
Third phase:
In this stage the applicant face the HRD customer development team (CDT) this phase
Measure the applicability of the applicants potential for the jobs. In these stage why the
Applicant prefers the Unilever and why it would like to join the expected team.
Physical ability test
The physical test is administered by Apollo Hospital Dhaka to measure the HIV, Hepatitis B, C
or such many diseases in its applicants health and fitness for job effort.
Work samples
For some technical jobs Unilever follows the work sample test on particular employee like the
one of Finance and IT.
Hiring decision
Finally the every step success ensures an applicant join in the Unilever family.
Page 27
In the external management recruitment selection process they use few uniform stages.
Interview means Face to face conversations between prospective job applicant and
representatives of the organization (International Students Edition Managing the Human
Resources -Page230).Techniques of handling interviews. They are
Situational interviews- applicant is questioned about a particular incident and asks how
he reacts.
Structured interviews-interview to collect information about beliefs, facts attitude and
behaviors. It can present one to one, may be through Internet or telephone. Been directed
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before and scripted the questions what staging standardized interview method so they can
evaluate the candidate.
Unstructured interview- interview to explore wide range the candidate and its nondirective, non-structured and responded led which cover variety of topics through open
questions.
Semi Structured interview- combination of both unstructured and structured to collect
qualitative information about views opinions and experiences by asking open ended and
close ended questions.
Thus Tesco use two interview on screening process there are benefits like
Provide opportunities for interviewers to ask probing questions about the candidates
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studying
hard
and
succeeding
in
class.
Many, maybe most, activities are not intrinsically satisfying enough to get most of us to do them
consistently, so extrinsic motivation needs to be applied in the form of rewards (positive
reinforcements), incentives, or as a way to avoid some unpleasant condition ("negative
reinforcement" or punishment). Examples: You work doing an ordinary job for pay. You study
for good grades or to avoid failing or to prepare for a good future. You do housework to get a
clean, organized house and/or a spouse's appreciation or to avoid her/his disapproval. A teenager
comes home from a date on time in order to avoid being grounded. These are all activities that
are commonly sustained by external pay offs, not because you love working, studying, cleaning,
and coming home early.
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Are rewards, particularly money rewards, really motivators? The answer to this question is YES
and
NO.
Money is understood to be powerful motivator for more than one reason. In the first place,
money is fundamental for completion of a task. The employee takes pay as the reward for his or
her work, and the employer views it as the price for using the services of the employee. Second,
as a medium of exchange. Third, money is one of the hygiene factors, and improving
maintenance factors is the first step in efforts directed towards motivation. Fourth, money also
performs the function of a score card by which employees assess the value that the organization
places on their services and by which employees can compare their values to others. Fifth,
reinforcement and expectancy theories attest to the value of money as a motivator. Sixth, money
acts as a punctuation in ones life. It is an attention getting and effect producing mechanism.
Money, has therefore tremendous importance in influencing employee behavior. Seventh, money
is easily vulnerable to manipulation. Finally, money will be a powerful motivator for a person
who is tense and anxious about lack o money. But behavioral scientists think otherwise. They
downgrade monetary rewards as a motivator. They prefer, instead, other techniques such as
challenging jobs, goals, participation in decision-making and other non-monetary rewards for
motivating employees.
Types of Reward Systems
The financial rewards are basically of three types:
profit sharing;
job evaluation; and
Merit rating.
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Profit Sharing
Profit sharing could be on a macro basis or on a micro basis. The former relates to the entire
company as a whole and the latter to a particular section or group dealing with a particular
activity and/or product. On a macro level, it would be difficult to identify and reward outstanding
performance. This is possible on a micro level by treating the particular activity as a cost and
profit center by itself. This is easier said than done, since overheads and other common services
have to be charged and this cannot be done completely objectively. The cost allocation in such
cases is somewhat arbitrary and the profit will therefore not be a true reflection of the
performance of that particular group or activity.
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Job Evaluation
In case of job evaluation, the various component factors have to be isolated and evaluated for
purposes of inter-job comparison. Each factor is assigned a rating on the basis of a scale agreed
beforehand by the union and the management joint committee. The total rating for each job then
forms the basis of wage structure. However, there must be a base level, representing, in effect,
the 'minimum wage', depending on the nature of work and the geographical area. In some cases
and in some countries these are stipulated by law. A typical, though somewhat broad, list of job
factors
is
as
follows:
working environment;
physical characteristics;
mental characteristics;
extent of responsibility;
Training and experience.
responsibility;
expertise;
Human relations.
Merit Rating
Merit rating has been used as an indicator of performance. Each employee is rated, typically as
excellent,
good,
average
or
poor,
in
respect
of
the
following
abilities:
communication;
human relations, including leadership and motivation;
intelligence;
judgment;
Knowledge
The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias
of the rater who may be too lenient, may not be objective and may also have favorites or
otherwise in the group being rated.
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Financial Rewards
These rewards in organizations help employees to be more committed and motivated to their job
and working environment:
System rewards are automatically given to all employees for merely being members of their
organisation. System rewards can be defined as being the basic wage rates.
Individual rewards are given to employees based on the quality and quantity of their
performance. Performance related pay (PRP) is seen as an individual reward policy, where pay is
rewarded in relation to the volume of output. PRP can cause divisions amongst workers, where
employees become more worried about the fact that their colleagues are being paid more than
them.
Growth rewards are received by employees for job innovation, learning and improvement.
The key to managing performance through rewards is linking the desired performance with the
appropriate reward.
Non-financial Rewards
In an ever more competitive environment, the aim of organizations must now be to focus on
increasing the added value of their employees. This is achieved, by encouraging employees to
increase their effort and performance higher than the average standards. This has been carried out
using employee appraisals and motivational methods.
Employers have become increasingly aware of the rich potential for good constructive ideas that
exist from the employees on the job experiences. One method for using this knowledge is
through suggestion schemes, these are becoming highly recognized, as they allow for
improvements in all areas of work. These schemes are very flexible and can be readily adapted to
meet all kinds of working conditions. Suggestion schemes can be seen as a means of increasing
profit
and
worker
participation.
Suggestion schemes aim to improve employee attitudes by directing their attention to the
positive and progressive aspects of their jobs. This helps to boost employee morale and increase
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job satisfaction. It can be identified that if an employee is unhappy in his/her job it reflects on a
negative attitude on his/her performance and also with other people.
Experience in many companies has shown low employee morale reflects on low productivity and
increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining
morale.
Another method which is not related to pay is the performance appraisal system. This method is
used as a means of raising individual performance and identifying development needs. Appraisal
systems today are becoming part of the management culture, where managers feel it necessary to
appraise and be appraised.
Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding
any negative feedback from traditional appraisals. Self rating is an effective way of trying to get
the employee to look at what their roles are in relation to business needs.
It is fair to state that employees are not motivated by money alone. Paying different wage rates to
employees doing the same jobs can cause more problems than benefits.
There are other incentives to reward employees, other than financial such as appraisals.
Appraisals can prove to be an effective means for looking at human resources, as they allow us
to:
Ensure that the abilities and energies of individuals are being used effectively.
Allow employers to identify better uses of individuals talents and experience.
Training needs can also be identified.
Future decision making as data of abilities can be kept on file for future reference.
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External Equity is the term used to describe comparative salaries paid in the marketplace
where Brown competes to hire and retain similar types of employees. Compensation
Services participates in various salary surveys to determine competitive pay practices.
Internal Equity is the term used to describe the comparison of salaries paid to employees
working in the same grade or level within the University (both within the department and
University-wide).
Brown recruits in various markets to fill positions, depending upon the requirements and
level of the position. They are usually as follows:
o Department head level positions and above: national markets
o Professional and administrative positions below department head level: regional
markets
o Support staff and entry level exempt positions: local markets
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Job Evaluation
The job evaluation process established the relative value of jobs throughout the university. There
are two steps involved in this process:
1. Job Analysis and Job Description - Using a "job profile," the content of each job is
analyzed to identify key duties, responsibilities, and qualification necessary to perform
the job. Written job descriptions are then prepared to contain this information.
2. Job Evaluation - A computer assisted job evaluation plan, measuring 17 dimensions of
nonexempt work and 28 dimensions of exempt work, is used to evaluate the relative
worth of staff positions. This evaluation process focuses on valuing the content of each
position in terms of a series of well-defined compensable factors.
The factors for clerical, service, technical, and administrative support positions include:
a. Knowledge: Minimum required level of specialized training, education, and
previous related work experience.
b. Skill: The manual and physical skills required to perform the duties of the
position.
c. Work Complexity: The degree and amount of judgment, initiative and ingenuity
involved in accomplishing work.
d. Contact with Others: The extent to which the work entails dealing with others in
the course of one's regular duties, including the frequency and nature of contacts
and the likely results of such contacts.
e. Property Protection and Use: The extent to which the position has responsibility
for university property, including funds, vehicles and confidential information.
f. Work Leadership: The responsibility for directing, instructing and training
personnel; and for planning controlling and assigning work.
g. Working Environment: The physical conditions encountered during a typical work
day. Conditions such as heat, cold, dirt, fumes, hazards, etc. are considered.
h. Student Relations: The responsibility for dealing with students, including the
nature and frequency of contacts.
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MAXIMUM: The highest wage paid for jobs in the salary grade.
System rewards are automatically given to all employees for merely being members of
their organisation. System rewards can be defined as being the basic wage rates.
Individual rewards are given to employees based on the quality and quantity of their
performance. Performance related pay (PRP) is seen as an individual reward policy,
where pay is rewarded in relation to the volume of output. PRP can cause divisions
amongst workers, where employees become more worried about the fact that their
colleagues are being paid more than them.
Growth rewards are received by employees for job innovation, learning and
improvement.
The key to managing performance through rewards is linking the desired performance with the
appropriate reward.
NON-FINANCIAL REWARDS NON-FINANCIAL REWARDS
Page 40
In an ever more competitive environment, the aim of organisations must now be to focus on
increasing the added value of their employees. This is achieved, by encouraging employees to
increase their effort and performance higher than the average standards. This has been carried out
using employee appraisals and motivational methods.
Employers have become increasingly aware of the rich potential for good constructive ideas that
exist from the employees on the job experiences. One method for using this knowledge is
through suggestion schemes, these are becoming highly recognised, as they allow for
improvements in all areas of work. These schemes are very flexible and can be readily adapted to
meet all kinds of working conditions. Suggestion schemes can be seen as a means of increasing
profit and worker participation.
Suggestion schemes aim to improve employee attitudes by directing their attention to the
positive and progressive aspects of their jobs. This helps to boost employee morale and increase
job satisfaction. It can be identified that if an employee is unhappy in his/her job it reflects on a
negative attitude on his/her performance and also with other people.
Experience in many companies has shown low employee morale reflects on low productivity and
increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining
morale.
Another method which is not related to pay is the performance appraisal system. This method is
used as a means of raising individual performance and identifying development needs. Appraisal
systems today are becoming part of the management culture, where managers feel it necessary to
appraise and be appraised.
Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding
any negative feedback from traditional appraisals. Self rating is an effective way of trying to get
the employee to look at what their roles are in relation to business needs.
A survey was Conducted in mid-2009 by the e-reward survey, undertaken in partnership with the
Institute for Employment Studies, produced up-to-date and revealing information from senior
HR and reward practitioners in 173 UK-based organisations employing around two million
Page 41
people. It examines all the main aspects of reward effectiveness and the process of evaluation,
shedding light on this relatively little understood area.
Recent changes to reward
Before considering reward effectiveness in more detail, respondents were asked the
related question of whether they had made changes to any of their key areas of reward in
the last three years. The most widespread changes have been made in three areas: reward
strategy; bonus and incentive plans; and benefits, allowances, flexible benefits and/or
voluntary benefits.
By far the most prominent reason given for such moves is to align with changes in
business strategy/reflect business needs, mentioned by almost seven in ten respondents
(68 per cent). This was followed by three other pressures for change, each mentioned by
around half of respondents: cost/financial pressures, changes driven by the need to
reflect/match
market
practice
and
to
address
identified
weaknesses/shortfalls/ineffectiveness.
Linked to this, respondents were also asked whether their reward function is under
greater pressure to demonstrate the value which they and their reward systems deliver. As
many as 83 per cent say they are, with 24 per cent of the whole sample claiming that such
pressure is quite substantial.
Reward objectives
To provide further context, respondents were asked to outline their most important
reward goals. The three most notable objectives are to align with business strategy;
external competitiveness to recruit and retain; and to pay for performance and
contribution.
Considering all reward objectives, most respondents feel that they are only achieving
these reasonably effectively (71 per cent), compared with just 2 per cent who say they
are highly effective at realising their aims.
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In addition, mirroring a trend found in many replies, those in the public sector tend to be
less satisfied than their private sector counterparts, giving lower ratings to the delivery of
most of their reward objectives.
Underpinning actual reward goals are the systems designed to deliver the various
components of reward and most survey participants believe their arrangements can only
be described as average.
Nevertheless, while most replies are clustered around a middling assessment, responses
are somewhat skewed. A greater proportion of those replying believe their reward
systems are superior to their competitors, although a significant minority report that they
consider their systems to have some key weaknesses or worse.
On a further slight note of optimism, however, 54 per cent of survey respondents say that
their reward systems have improved over the last 12 months, with only 4 per cent
believing that they have worsened. The other 42 per cent reckon that effectiveness
remains unchanged. When asked about the effectiveness of reward systems relating to
their main employee groups, there was not a great deal of difference from the results
relating to the whole sample.
Nevertheless, some small differences emerged. Reward systems for executives and senior
managers are considered marginally more effective than those used for other groups,
while those relating to sales and manual workers are slightly less effective.
Page 43
A number of patterns more generally did emerge. Most notably, reward systems are more
likely to be effective in delivering benefits, especially pensions, while systems relating to
reward communications and recognition plans tend to be less successful.
Once an annual ritual, performance appraisal has become a continuous process by which an
employees understanding of a companys goals and his or her progress toward contributing to
them are measured. Performance measurement is an ongoing activity for all managers and their
subordinates.
Performance measurement uses the following indicators of performance, as well as assessments
of those indicators.
1. Quantity: The number of units produced, processed or sold is a good objective indicator of
performance. Be careful of placing too much emphasis on quantity, lest quality suffer.
2. Quality: The quality of work performed can be measured by several means. The percentage of
work output that must be redone or is rejected is one such indicator. In a sales environment, the
percentage of inquiries converted to sales is an indicator of salesmanship quality.
3. Timeliness: How fast work is performed is another performance indicator that should be used
with caution. In field service, the average customers downtime is a good indicator of timeliness.
In manufacturing, it might be the number of units produced per hour.
4. Cost-Effectiveness: The cost of work performed should be used as a measure of performance
only if the employee has some degree of control over costs. For example, a customer-service
representatives performance is indicated by the percentage of calls that he or she must escalate
to more experienced and expensive reps.
Page 44
in
its
development.
11. Self-Appraisal: The employee appraises his or her own performance, in many cases
comparing the self-appraisal to management's review. Often, self-appraisals can highlight
discrepancies between what the employee and management think are important performance
factors and provide mutual feedback for meaningful adjustment of expectations.
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12. Peer Appraisal: Employees in similar positions appraise an employees performance. This
method is based on the assumption that co-workers are most familiar with an employees
performance. Peer appraisal has long been used successfully in manufacturing environments,
where objective criteria such as units produced prevail. Recently, peer appraisal has expanded to
white-collar professions, where soft criteria such as works well with others can lead to
ambiguous appraisals. Peer appraisals are often effective at focusing an employees attention on
undesirable behaviors and motivating change.
13. Team Appraisal: Similar to peer appraisal in that members of a team, who may hold different
positions, are asked to appraise each others work and work styles. This approach assumes that
the teams objectives and each members expected contribution have been clearly defined.
14. Assessment Center: The employee is appraised by professional assessors who may evaluate
simulated or actual work activities. Objectivity is one advantage of assessment centers, which
produce reviews that are not clouded by personal relationships with employees.
15. 360-Degree or Full-Circle Appraisal: The employees performance is appraised by
everyone with whom he or she interacts, including managers, peers, customers and members of
other departments. This is the most comprehensive and expensive way to measure performance,
and it is generally reserved for key employees.
16. MBO (Management by Objectives): The employees achievement of objective goals set in
concert with his or her manager is assessed. The MBO process begins with action statements
such as, reduce rejected parts to 5 percent. Ongoing monitoring and review of objectives keeps
the employee focused on achieving goals. At the annual review, progress toward objectives is
assessed, and new goals are set.
There are as many indicators of performance as there are companies and jobs. The various
assessment methods can be used in combinations. It is important to choose indicators that align
with your companys goals and assessment methods that effectively appraise those indicators.
Page 46
LO4
4.1) carry out risk assessments as required by legislation, regulation and organizational
requirements ensuring appropriate action is taken?
Health and Safety legislation can be defined as, organised efforts and procedures for
identifying workplace hazards and reducing accidents and exposure to harmful situations and
substances. It also includes training of personnel in accident prevention, accident response,
emergency preparedness and use of protective clothing and equipment. Business
dicitionary.com (2006) definition of health and safety management [online] (updated on 5 th June
2010)
Available
at:
http://www.businessdictionary.com/definition/health-and-safety-
management.html.
A risk assessment is an essential action in shielding employees for IKEA and its business, also
with act in accordance with the law set by the government. For IKEA it ensures them to remain
focal point which is a subject in workplace- the ones which causes problems.
In some situations simple measures can readily manage risks, for example, promptly cleaned
floors prevents workers from falling on the floor or with safety equipments being constantly
provided with higher and good quality materials from preventing the workers not getting burnt as
well as saving the workers from heat radiation emitted out by the machines.
Also well managed safety standards lay down by the management like fire safety drill every 6
months. All this things brings worth to IKEA. IKEA health and safety department has devised a
five step plan in order to carry out risk assessment in order to ensure that appropriate action is
taken.
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d
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z
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r
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A
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g
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IKEA further uses the fire alarm system, relevant sign boards such as exit, fire, no smoking,
emergency exit etc. where have been placed to make it easier for employees to know wherein
which device is located. The employees are handed out the health and safety document while
joining the firm and are made acquainted to the health and safety regulations of the firms.
Page 49
The author believes that IKEA has enough precautions in their kitty to prevent from health and
safety issues. Therefore the benefits which the firms gains as well the employees and workers
are listed below:-
Reduce
accidents
increased
standards
and
efficiency
improved
employer/
employee
relations
Reduced
insurance
claims
Fewer
compensat
ion claims
improved
uses of
resources
Boost in
productivit
y/profit
Figure 4.7 benefits to IKEA of having health & safety regulations
4.2) demonstrate that health and safety regulations and legislations applicable in specific work
situations are correctly and effectively applied?
The laws do expect every organisation to practice but they have to see the safety of
employees as well as society at large. The author has identified the health and safety legislations
according to the Factories act of 1948 for health and safety and welfare of the workers pertaining
to PAINT Industry.
The author will give laws which are related to the industry which the company operates in as
well as the laws which are specific to the organisation (IKEA )
Page 50
4.3) Carry out a systematic review of organisational health and safety policies and procedures in
order to ensure they are effective and compliant?
In order to carry out a systematic review of organisational health and safety policies and
procedure the author has drawn a health and safety policies which is followed by IKEA
The author believes that IKEA are always ready to accept the change and forge these changes in
their organisation. Evaluating the effectiveness of health and safety regulations it is necessary for
IKEA to know whether they are efficient and compliant enough to practice health and safety
regulation in their organisation.
4.4) Carry out practical applications of health and safety policies and procedures in the
workplace?
The author has given IKEA author views and points of practical application of health and
safety policies which are mentioned in the above diagram no. 4.10, for example the health and
safety law of slip trip and fall, the practical application of the health and safety policy in
workplace could be done by hiring the service of housekeeping company people who comes
during the production hours where the chances of spilling of FURNITURE APPLIANCES
likely to take place therefore with the help of housekeeping firms machine will able to keep the
floors clean which will lead to reducing the number accident.
According to the author the other health and safety policy which needs to practically to be used
is the Work equipment and machinery. The management should have a contract with the current
vendors who are providing the Quarterly reports of the maintenance of the equipments or they
should start bargaining at the point of buying new machinery in the organisation by having an
early contract with vendor for maintenance or replacing old with new machines.
Last but not the least the practical application of Fire and explosion act of health and safety in
IKEA can be done by having monthly fire mock drill which will make the company use the fire
extinguisher, which will prevent it from getting expired and value for money is adhered.
Page 52
Reference:
http://smallbusiness.chron.com/methods-used-companies-monitor-employees-computers64671.html
http://www.williamscollege.co.uk/hnd_business_human_resource_mngt.html
Denison, D. R. Corporate Culture and Organizational Effectiveness, New York: Wiley, 1990.
Devries, D. L., Morrison, A. M. Shullman, S. L. and Gerlach, M. L., Performance Appraisal on
the Line, New York: Wiley-Interscience, 1981.
Frost, Carl F., Wakely, John H. and Ruh, Robert A. The Scanlon Plan for Organization and
Development: Identity, Participation, and Equity, Michigan State University Press, 1974.
Galbraith, J. R. and Nathanson, D. A., Strategy Implementation: The Role of Structure and
Process, St. Paul: West, 1978.
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