Various METHODS OF PURCHASING exist, each tailored to specific needs and circumstances.

BLACK BELTS play a crucial role in the implementation of Six Sigma, a methodology aimed at improving PERFORMANCE APPRAISAL AND ITS AIM *Performance Appraisal:*Performance
Here are some common methods: Spot Buying: Purchasing goods or services on an ad-hoc basis process efficiency and minimizing defects. Here are key roles and responsibilities associated with Black appraisal, also known as performance evaluation or review, is a systematic process
at prevailing market prices without a long-term contract. This is suitable for one-time or Belts in Six Sigma implementation: Project Leadership: Black Belts lead and manage Six Sigma projects that assesses an employee's job performance and provides feedback on their
infrequent purchases. Vendor Managed Inventory (VMI): In this approach, the supplier from initiation to completion, taking responsibility for achieving project goals and delivering measurable accomplishments, strengths, and areas for improvement. It is a crucial component
manages the buyer's inventory levels, ensuring timely replenishment. It promotes efficiency and improvements. Problem Solving: They are skilled in using statistical tools and techniques to analyze of the performance management system within an organization. *Aims of
reduces stockouts. Centralized Purchasing: Concentrating the purchasing function in a central data, identify root causes of issues, and implement effective solutions to eliminate defects and improve Performance Appraisal:* 1. *Feedback and Improvement:* - Provide employees
department to leverage economies of scale, negotiate better deals, and maintain consistency. processes. Mentoring and Training: Black Belts often mentor Green Belts and other team members, with constructive feedback on their performance, highlighting areas of excellence
Decentralized Purchasing: Distributing purchasing responsibilities across different departments providing guidance on Six Sigma methodologies, tools, and problem-solving techniques. They may also and identifying areas that need improvement. 2. *Goal Setting:* - Establish clear
or locations, allowing for more localized decision-making and responsiveness to specific needs. conduct training sessions to build organizational capability in Six Sigma. Data Analysis: Black Belts are performance expectations and goals for employees, aligning individual objectives
Just-In-Time (JIT): A strategy focused on minimizing inventory levels by receiving goods only as proficient in statistical analysis and data interpretation, using tools like Pareto charts, control charts, and with organizational objectives. 3. *Recognition and Rewards: - Recognize and
they are needed in the production process. It helps reduce carrying costs. Group Purchasing regression analysis to understand process variations and identify improvement opportunities. Cross- reward employees for their achievements, fostering a positive and motivated work
Organizations (GPO): Organizations that aggregate the purchasing power of multiple buyers to Functional Collaboration: They collaborate with individuals from different departments to ensure a environment. 4. *Career Development:* - Identify employees' strengths and areas
negotiate better deals with suppliers, often used in healthcare and other industries. e- holistic approach to process improvement, considering the entire value chain and its impact on for growth to guide career development plans and training opportunities. 5.
Procurement: Leveraging electronic systems and technology to facilitate the purchasing process, organizational goals. Project Selection: Black Belts contribute to the identification and selection of *Communication and Dialogue:* - Facilitate open communication between
including online catalogs, requisitions, and electronic approvals. Strategic Sourcing: A projects aligned with organizational objectives and priorities, ensuring that Six Sigma efforts address employees and managers, creating a platform for discussing expectations,
comprehensive approach involving analyzing the entire supply chain, understanding supplier critical business needs. Performance Measurement: Black Belts establish key performance indicators challenges, and career aspirations. 6. *Decision-Making:* - Provide data and
capabilities, and making decisions based on long-term relationships and value rather than just (KPIs) and metrics to measure the success of Six Sigma projects, providing a quantitative assessment of insights for decisions related to promotions, salary adjustments, and other talent
cost. Reverse Auctions: Suppliers compete to win business by bidding down prices. This method improvements [Link] Management: They facilitate and lead change within the organization, management processes. 7. *Performance Standards:* - Establish and maintain
is often used for commodities or standardized goods and services. Contract Manufacturing: helping teams adapt to new processes and methodologies, and ensuring sustained improvements over performance standards for different roles within the organization, ensuring
Outsourcing the manufacturing of a product to a third-party, allowing the buyer to focus on time. Quality Control: Black Belts monitor and control process performance to maintain the gains consistency and fairness. 8. *Identify Training Needs:*- Highlight areas where
design, marketing, and distribution. Blanket Orders: Placing a single order with a supplier for achieved through Six Sigma projects. This involves implementing control plans and ongoing monitoring employees may benefit from additional training or development, contributing to
multiple deliveries over an agreed-upon period, often used when there's a consistent need for a to prevent regression. Project Documentation: They ensure thorough documentation of project details, continuous learning and skill enhancement. 9. *Motivation and Morale:* Boost
product. Consortium Buying: Collaborating with other organizations to combine purchasing methodologies, findings, and results, providing a comprehensive record for organizational learning and employee motivation and morale by acknowledging their contributions and
power and negotiate bulk discounts. Supplier Relationship Management (SRM): Focusing on future reference. Communication: Effective communication is vital. Black Belts communicate project showing that their efforts are recognized and valued. 10. *Succession Planning:*-
building and managing strong, collaborative relationships with key suppliers to enhance overall progress, outcomes, and recommendations to leadership and team members, fostering transparency Contribute to succession planning by identifying high-performing employees who
performance and value. and alignment with organizational goals. Strategic Alignment: Black Belts align Six Sigma projects with may be suitable for future leadership roles.
the strategic objectives of the organization, ensuring that improvement efforts contribute to overall
business success.

INVENTORY CONTROL aims to achieve various objectives within a business, balancing the
need for adequate stock levels with the desire to minimize holding costs and maximize WHAT IS MANAGEMENT DEVELOPMENT AND ITS 2 TECHNIQUES *Management
operational efficiency. Some key objectives of inventory control include: Optimal Stock Development:* Management development refers to the structured process of enhancing
Levels: Ensuring that the right amount of inventory is maintained to meet customer the skills, knowledge, and abilities of individuals in managerial positions within an
demand and production requirements without excessive overstock or stockouts. Cost organization. It aims to prepare current and future leaders for the challenges and
Minimization: Minimizing holding costs, including storage, insurance, and handling WHY IS TRAINING IMPORTANT Training is important for several reasons, contributing to the responsibilities of their roles, contributing to overall organizational success. *Techniques of
expenses, while avoiding costs associated with stockouts or rush orders. Efficient Resource overall success and effectiveness of individuals and organizations. Here are key reasons why Management Development:* 1. *Training Programs:*- *Description:* Formal training
Utilization: Optimizing the use of financial resources tied up in inventory and preventing training holds significance: 1. *Skill Development:* - Training enhances employees' skills and programs are designed to improve specific managerial skills, such as leadership,
excessive investment in stock that could be utilized elsewhere. Customer Service: Ensuring competencies, ensuring they possess the necessary knowledge to perform their tasks communication, strategic thinking, and decision-making.*Technique:* These programs can
a high level of customer satisfaction by maintaining adequate stock to meet demand effectively. 2. *Increased Productivity:*- Well-trained employees are more productive, as include workshops, seminars, conferences, and online courses tailored to address the
promptly and avoid delays in product delivery. Order Fulfillment: Streamlining order they can work more efficiently and make better use of available resources. 3. *Adaptation to unique needs of managers at different levels.*Benefits:* Training programs offer a focused
fulfillment processes to reduce lead times and meet customer expectations effectively. Technological Changes:*- Continuous training helps employees stay updated with and targeted approach to skill development, providing managers with practical tools and
Demand Forecasting: Enhancing the accuracy of demand forecasting to align inventory technological advancements, ensuring they can leverage new tools and systems. 4. knowledge applicable to their roles. 2. *Mentoring and Coaching:*- *Description:*
levels with expected future requirements and minimize the risk of excess or insufficient *Improved Performance:*- Training provides employees with the knowledge and techniques Mentoring involves a more experienced manager (mentor) guiding and supporting a less
stock. Avoiding Stockouts: Preventing situations where products are out of stock, which needed to improve their job performance, leading to better outcomes for the organization. 5. experienced manager (mentee). Coaching is a one-on-one interaction aimed at improving
could lead to lost sales, dissatisfied customers, and potential damage to the reputation of *Enhanced Job Satisfaction:* - Employees who receive proper training often feel more performance and achieving specific goals. - *Technique:* Pairing experienced leaders with
the business. Supplier Relationships: Managing relationships with suppliers to ensure confident and satisfied in their roles, leading to increased job satisfaction and morale. 6. emerging leaders creates a knowledge-sharing environment. Coaching involves regular
timely deliveries, negotiate favorable terms, and maintain a reliable supply chain. ABC *Employee Retention:* - Investing in training programs demonstrates a commitment to sessions where a coach provides guidance, feedback, and support. *Benefits:* Mentoring
Analysis: Prioritizing inventory items based on their importance, allowing for focused employees' professional development, which can contribute to higher retention rates. 7. and coaching foster a personalized approach to development, allowing managers to receive
attention on critical items to ensure optimal control and management. *Adherence to Quality Standards:* - Training ensures that employees understand and guidance from seasoned professionals and address individual challenges.
adhere to quality standards, reducing errors and improving the overall quality of products or
services. 8. *Risk Management:*- Training helps mitigate risks associated with non-

TOTAL COMPENSATION AND ITS COMPONENT *Total Compensation:* Total compensation refers INDUCTION PROCESS AND ITS COMPONENTS *Induction Process:* The induction
to the complete package of monetary and non-monetary benefits that employees receive from process, also known as orientation, is a structured program designed to introduce new
their employers in exchange for their work and services. It goes beyond the base salary and employees to their workplace, colleagues, and the organization's culture. It plays a
PRODUCTION AND OPERATIONS MANAGEMENT (POM) involves various functions includes various elements that contribute to the overall value of the employment relationship. crucial role in helping new hires integrate smoothly into their roles and feel acclimated to
essential for efficient business processes: Capacity Planning: Determining the production *Components of Total Compensation:* 1. *Base Salary:*- The fixed amount of money paid to an the company. Here are key components of the induction process: 1. *Welcome and
capacity needed to meet demand efficiently. Forecasting: Predicting future demand for employee regularly, typically on a monthly or bi-weekly basis. 2. *Variable Pay:*- Includes Introduction:* - Greet new employees warmly, introduce them to key personnel, and
products or services to plan production schedules. Quality Management: Ensuring bonuses, incentives, or performance-related pay that is contingent on achieving specific goals or provide an overview of the organization's history, values, and mission. 2. *Paperwork
products or services meet established quality standards. Process Design and targets. 3. *Benefits:*- Non-monetary offerings provided by employers to enhance the overall and Documentation:*- Complete necessary paperwork, including employment contracts,
Improvement: Developing and refining production processes for efficiency and well-being of employees. Common benefits include health insurance, dental coverage, retirement tax forms, and other administrative documents. 3. *Company Policies and Procedures:*
effectiveness. Inventory Management: Controlling and optimizing levels of raw plans, and life insurance. 4. *Perks and Allowances:* - Additional payments or allowances beyond - Provide an overview of the organization's policies, procedures, and code of conduct,
materials, work-in-progress, and finished goods. Supply Chain Management: the base salary, which can include transportation allowances, housing allowances, or meal ensuring new hires understand expectations and compliance requirements. 4.
Coordinating the entire network of suppliers, manufacturers, distributors, and retailers allowances. 5. *Paid Time Off (PTO):* - Time away from work for vacation, holidays, sick leave, or *Workplace Tour:*- Familiarize new employees with the physical layout of the
to deliver products to customers. Scheduling: Creating timelines and plans for personal reasons, with pay. 6. *Health and Wellness Programs:*- Initiatives and benefits aimed at workplace, including key areas such as workstations, break rooms, restrooms, and
production activities to meet demand. Maintenance Management: Ensuring machinery promoting employees' health and well-being, such as gym memberships, wellness programs, and emergency exits. 5. *Introduction to Teams and Departments:*- Arrange meetings with
and equipment are properly maintained to minimize downtime. Facility Location and employee assistance programs. 7. *Retirement Plans:* - Contributions made by the employer colleagues and department heads to help new hires understand the structure of the
Layout: Deciding where to locate facilities and designing layouts for optimal workflow. towards an employee's retirement savings, such as 401(k) or pension plans. 8. *Stock Options or organization and the roles of different teams. 6. *Job Responsibilities and
Product Design and Development: Collaborating on the creation and improvement of Equity:* - Ownership stakes or the right to purchase company stock at a predetermined price, Expectations:* - Clarify job roles, responsibilities, and performance expectations. Discuss
products to meet market demands. Job Design and Work Measurement: Organizing providing employees with a potential share in the company's success. 9. *Professional specific tasks and projects, as well as how performance will be measured. 7. *Technology
tasks and measuring work for efficiency and productivity. Health and Safety Development:*- Support for ongoing learning and skill development, including funding for courses, and Tools Training:*- Provide training on the use of relevant technology, tools, and
Management: Ensuring a safe working environment for employees. Technology conferences, or certifications. 10. *Recognition and Rewards:*- Programs that acknowledge and software required for the job. 8. *Safety and Emergency Procedures:* - Communicate
Management: Incorporating and managing technology to enhance production reward outstanding performance, often involving non-monetary recognition, certificates, or safety protocols, emergency procedures, and any other important health and safety
processes. trophies. information. 9. *Introduction to Company Culture:*- Discuss the company's values,
culture, and unwritten rules. Emphasize the importance of collaboration,
communication, and teamwork. 10. *Employee Benefits and Perks:*- Explain employee

SELECTING A SITE FOR CONSTRUCTING A 5-STAR HOTEL IN A METROPOLITAN CITY involves benefits, perks, and any wellness programs offered by the organization .
considering several crucial criteria: Location: Proximity to key attractions, business districts, and GOOD QUALITIES OF A GOOD HR MANAGER A successful Human Resources (HR)
transportation hubs for convenience and accessibility. Market Demand: Analyzing the demand manager possesses a combination of interpersonal, strategic, and organizational skills.
for luxury accommodations in the specific area and understanding the target market. Zoning and Here are some key qualities that contribute to being an effective
Regulations: Ensuring the site complies with local zoning laws and building regulations for hotel HRmanager:1.*Communication Skills: Ability to communicate clearly and effectively with
construction. Infrastructure: Assessing the availability and reliability of essential infrastructure employees at all levels, as well as facilitate open communication within the STEPS IN HR PLANNING Human Resource Planning (HRP) is a strategic process that
such as water, electricity, and waste disposal. Safety and Security: Evaluating the overall safety organization.2. **Empathy: Understanding and empathizing with the needs and concerns involves forecasting an organization's future workforce needs and ensuring it has the
of the area and implementing security measures for guests. Amenities and Services: Identifying of employees, fostering a positive and supportive work environment.3. **Integrity: right talent to achieve its objectives. Here are the steps involved in HR planning:1.
nearby amenities, entertainment options, and services that complement the luxury hotel Maintaining high ethical standards and integrity when handling sensitive information, Understanding Organizational Objectives: Begin by understanding the
experience. Competitive Landscape: Studying the presence of other luxury hotels in the vicinity conflicts, and decision-making.4. *Problem-Solving Skills:- Being adept at identifying, organization's overall goals and strategic objectives. HR planning should align with
and determining the uniqueness of the proposed site. Accessibility: Ensuring easy accessibility analyzing, and resolving HR-related challenges and conflicts in a fair and objective and support these broader objectives. [Link] Scanning: Conduct an
for guests via major roads, public transportation, and proximity to airports or railway stations. manner. 5. **Adaptability:- Flexibility in adapting to changing organizational needs, analysis of the external environment, including economic, technological, and social
Environmental Considerations: Assessing the environmental impact and sustainability of the site, industry trends, and evolving HR practices.6. **Strategic Thinking:- Aligning HR initiatives factors, to identify potential challenges and opportunities that may impact
adhering to green building practices. Scenic Views and Ambiance: Considering the aesthetics of with the overall business strategy to contribute effectively to organizational goals and workforce planning 3. Workforce Inventory: Compile a detailed inventory of the
the surroundings, including scenic views and the overall ambiance of the location. objectives.7. **Leadership:* Demonstrating strong leadership qualities to guide HR current workforce, including skills, qualifications, experience, and positions. This
Demographics: Understanding the demographics of the area to align the hotel's offerings with teams and influence positive organizational culture 8. Organizational Skills: Effectively snapshot provides a starting point for future planning. 4. Forecasting Future
the preferences of potential guests. Land Cost and Availability: Evaluating the cost of land and its managing multiple tasks, deadlines, and priorities while maintaining attention to detail9. Workforce Needs: Analyze future demand for human resources based on factors
availability, considering the budget constraints and long-term investment viability. Feasibility Decision-Making: Making informed and timely decisions based on a balance of data, such as business growth, expansion, technological changes, and turnover rates. This
Study: Conducting a comprehensive feasibility study to assess the financial viability of the experience, and consideration of potential impacts. 10. **Conflict Resolution:* involves predicting the quantity and types of employees needed.5. Supply Analysis:
project. Future Development Plans: Investigating any upcoming developments or urban planning Proficiency in managing conflicts and disputes within the workplace, fostering a Evaluate the internal and external sources of talent. This includes assessing the
harmonious work environment. availability of skills within the existing workforce, potential for promotions, and the
initiatives that might impact the hotel's success in the long run. external labor market.6. Gap Analysis: Compare the forecasted demand for
employees with the anticipated supply. Identify any gaps or surpluses in skills, and
determine how to address these gaps effectively.7. Action Planning: Develop
strategies to address workforce gaps. This may involve recruitment, training and
*Importance of Management Information System (MIS):*1. *Informed Decision-Making:*- development, promotions, restructuring, or other talent management initiatives.8.
*Importance:* MIS provides timely, relevant, and accurate information to support decision- Implementation: Execute the action plans outlined in the previous step. This could
making at all levels of an organization.2. *Efficient Operations:*- *Importance:* MIS include hiring new employees, upskilling existing staff, or implementing changes in
streamlines routine operational processes by automating data collection, processing, and organizational structure.9. Monitoring and Evaluation: Continuously monitor and
reporting 3. *Strategic Planning: - *Importance:* Supports strategic planning by providing evaluate the effectiveness of HR planning strategies. Adjust plans as needed based
insights into trends, patterns, and key performance indicators. 4. *Coordination and on feedback, changes in the business environment, or unforeseen circumstances 10.
Control:* - *Importance:* MIS facilitates coordination and control of various organizational Legal and Ethical Considerations: Ensure that HR planning complies with labour
activities. 5. *Resource Allocation:*- *Importance:* Assists in allocating resources effectively laws, regulations, and ethical standards. This includes considerations related to
by providing visibility into resource utilization. 6. *Improved Communication:* - diversity, equal opportunity, and fair employment practices.
*Importance:* MIS enhances communication within an organization by providing a common
platform for sharing information *Limitations of Management Information System (MIS):*1.
*Dependency on Input Data:*- *Limitation:* MIS relies on the quality and accuracy of input
data.2. *Inflexibility: - *Limitation:* MIS may lack flexibility to adapt quickly to changing
information needs.3. *Standardization:*- *Limitation:* MIS emphasizes structured and
standardized reports.4. *Focus on Internal Processes:* *Limitation*Primarily focused on
internal processes.5. *Isolation from External Data:*- *Limitation:* Often isolated from real-
time external data sources.6. *Emphasis on Past and Present Data:*- *Limitation:* Typically
focuses on historical and current data.7. *Security Concerns - *Limitation:* Inadequate
security measures may pose risks to sensitive data8. *Costly Implementation:*-

*Limitation:* Implementing and maintaining a robust MIS can be resource-intensive .

 JOB EVALUATION AND ITS METHODS JOB EVALUATION: Job evaluation is a systematic process used by
JOB TRAINING METHODS There are various job training methods organizations can use based on their specific needs, organizations to assess and determine the relative value of various jobs within the organization. It
the nature of the job, and the learning preferences of employees. Here are some common job training methods:[Link]- helps establish a fair and equitable internal pay structure by comparing the worth of different positions
the-Job Training (OJT):Description: Learning takes place directly within the work environment. Technique :Shadowing, based on their content, responsibilities, and required skills. Methods of Job Evaluation: 1. Job Ranking:
mentoring, job rotation, and apprenticeships. Benefits: Practical, hands-on experience; immediate application of Description: Jobs are ranked in order of their perceived value or importance to the
skills.2. *Classroom or Instructor-Led Training: Description: Traditional classroom setting where an instructor delivers [Link]: A committee or group of evaluators compares jobs and arranges them in a
training content to a group of learners. Technique: Lectures, presentations, discussions, and group activities. Benefits: hierarchy based on their overall significance. Benefits: Simple and straightforward; easy to
Structured learning, interaction with the instructor, and group discussions.3. E-Learning or Online Training: implement.2. Job Classification or Grading: Description :Jobs are categorized into predefined grades or
Description: Training delivered electronically through online platforms. Technique: Webinars, online courses, classes based on predetermined criteria. Process: Criteria may include factors like skill level,
interactive modules, and video tutorials. Benefits: Flexible, self-paced learning; accessibility from anywhere.4. responsibility, and complexity. Each grade has a corresponding pay range .Benefits: Provides structure;
Simulation and Role-Playing Description: Simulating real work scenarios to train employees in a risk-free facilitates internal equity.3. Point Factor System: Description: A quantitative approach that assigns
environment. Technique: Role-playing, case studies, business simulations. Benefits: Enhances decision-making skills; points to various factors, such as skill, effort, responsibility, and working conditions, associated with
allows practice in a controlled setting.5. Job Aids and Manuals: Description: Providing written materials to guide each job .Process :Jobs are evaluated based on the total points assigned, determining their relative
employees through tasks. Technique: Instruction manuals, reference guides, checklists. Benefits: Self-directed value. Benefits :Allows for detailed analysis; provides a numerical basis for comparisons.4. Factor
learning; serves as a quick reference tool.6. Cross-Training: Description: Training employees to perform tasks or roles Comparison Description :Combines elements of ranking and point factor methods. Jobs are ranked,
beyond their current responsibilities. Technique: Rotating employees through different job roles. Benefits: Develops and then factors like skill, responsibility, etc., are compared across ranked jobs. Process :Monetary
versatile employees; enhances teamwork.7. Coaching and Mentoring: Description: Pairing less experienced employees values are assigned to each factor, and the total provides the job's value. Benefits: Integrates ranking
with more experienced mentors. Technique: One-on-one guidance, feedback sessions. Benefits :Personalized learning; and quantitative elements.5. Market Pricing: Description :Jobs are evaluated based on external market
knowledge transfer from experienced employees. 8. Team-Based Training: Description: Training delivered to groups of data, considering prevailing industry pay rates for similar positions Process: Compensation is
employees working together. Technique: Team-building activities, collaborative projects. Benefits: Encourages determined by comparing the organization's pay levels with market rates .Benefits: Reflects external
teamwork; fosters a collaborative learning environment. market competitiveness; helps in attracting and retaining talent. [Link] System: Description :A widely
used point factor system that evaluates jobs based on three factors: Know-How, Problem Solving, and
Accountability. Process: Jobs are assessed against these factors, and points are assigned to determine
their relative value. Benefits: Provides a comprehensive approach; emphasizes key job factors7. Paired
Comparison: Description: Jobs are compared in pairs, and evaluators determine which job in each pair
SOP CONCEPT AND HOW DOES IT MOTIVATE EMPLOYEES Employee Stock Ownership Plan (ESOP):An is more valuable. Process: The number of times a job is selected as more valuable contributes to its
Employee Stock Ownership Plan (ESOP) is a retirement plan that allows employees to become partial owners overall ranking. Benefits: Simple and easy to administer; emphasizes relative value.
of the company by acquiring shares in the business. ESOPs are a form of employee benefit plan designed to
align the interests of employees with the success and performance of the company. Here's how ESOPs work
and how they can motivate employees: Motivating Employees through ESOP:1. Sense of Ownership: ESOPs
provide employees with a sense of ownership in the company. Knowing that their efforts contribute to the On-the-Job Training (OJT) vs. Off-the-Job Training:* *On-the-Job Training (OJT):* 1.
company's success and, in turn, the value of their shares can foster a strong sense of commitment.2. Financial *Definition:*- Involves training and learning activities that occur while the employee QUANTITATIVE AND QUANTITATIVE METHODS OF JOB EVALUATION-
Rewards: As the company performs well, the value of the ESOP shares increases. This financial reward is is actively engaged in their regular work duties and tasks. 2. *Learning Quantitative Methods of Job Evaluation:1. Point Factor Method: Assigns
directly tied to the overall success of the business, motivating employees to work towards its growth and Environment:*- Takes place within the actual work setting and involves hands-on numerical values to different factors such as skill, responsibility, and working
profitability.3. Long-Term Perspective: ESOPs encourage employees to take a long-term perspective on the experience in performing tasks relevant to the job. 3. *Supervision:*- Typically conditions. Jobs are then rated based on the total points assigned,
company's success. Since their financial stake is linked to the company's performance over time, employees conducted by experienced colleagues, supervisors, or mentors who guide the trainee determining their relative value.2. Factor Comparison: A quantitative
are likely to focus on sustainable growth rather than short-term [Link] of Interests: ESOPs align through practical tasks. 4. *Timing:*- Occurs in real-time during the regular work approach that combines elements of ranking and point factor methods.
the interests of employees with those of shareholders, as employees become shareholders themselves. This hours, allowing immediate application of newly acquired skills. 5. **Advantages:* - Monetary values are assigned to each factor, and the total provides the job's
alignment can lead to a shared commitment to the company's goals. 5. Employee Engagement :The Immediate application of skills, practical experience, cost-effective, and relevant to value.3. Paired Comparison: Compares jobs in pairs, and evaluators
opportunity to be part of an ESOP can enhance employee engagement and morale. Feeling valued and the actual job requirements. 6. Examples:*- Job shadowing, apprenticeships, determine which job in each pair is more valuable. The number of times a
connected to the company's success can positively impact job [Link] Benefits: ESOPs coaching, mentoring, and learning through daily work responsibilities. *Off-the-Job job is selected as more valuable contributes to its overall ranking.4. Hay
provide an additional source of retirement benefits for employees. The accumulation of shares over time can Training:* 1. *Definition:* - Involves training and learning activities conducted away System: Assigns points to jobs based on three factors: Know-How, Problem
contribute significantly to their financial well-being upon retirement.7. Company Culture: The presence of an from the employee's regular work environment. 2. *Learning Environment:* - Takes Solving, and Accountability. Jobs are assessed against these factors, and
ESOP can foster a positive company culture, emphasizing teamwork, collaboration, and a shared sense of place in a separate location, such as a classroom, workshop, or external training points are assigned to determine their relative value .NON-QUANTITATIVE
responsibility for the company's success.8. Attracting and Retaining Talent :Companies with ESOPs may find it facility. 3. *Supervision:* - Led by trainers or instructors who may not be directly METHODS OF JOB EVALUATION*1. *Job Ranking: Ranks jobs in order of
easier to attract and retain talent, as prospective and existing employees are drawn to the prospect of associated with the trainee's regular workplace. 4. *Timing:- Usually scheduled their perceived value or importance to the organization. A committee or
ownership and financial participation. separately from regular work hours, requiring employees to be temporarily away group of evaluators compares jobs and arranges them in a hierarchy based
from their job duties. 5. *Advantages:*- Allows focused learning without workplace on their overall significance.2. Job Classification or Grading: Categorizes jobs
distractions, provides a structured curriculum, enables exposure to a variety of into predefined grades or classes based on predetermined criteria. Criteria
perspectives and ideas. 6. *Examples:* - Classroom training, workshops, seminars, e- may include factors like skill level, responsibility, and complexity. Each grade
learning, conferences, and external training programs has a corresponding pay range.3. Market Pricing: Evaluates jobs based on
PERFORMANCE APPRAISAL VS. JOB EVALUATION:* *Performance Appraisal:* 1. external market data, considering prevailing industry pay rates for similar
*Focus:* - *Performance Appraisal:* Evaluates an individual employee's job positions. Compensation is determined by comparing the organization's pay
performance, accomplishments, strengths, and areas for improvement. *Job levels with market rates.4. Narrative or Job Description Ranking: Ranks jobs
Evaluation:* Assesses the relative worth or value of different jobs within the based on a written description of job duties and responsibilities. Evaluators
organization. 2. *Purpose:* - *Performance Appraisal:* Aims to provide feedback, compare the narratives to determine the relative value of jobs.5. Job
recognize achievements, identify areas for development, and make decisions related to Comparison: Compares entire jobs rather than specific factors. Jobs are
promotions, raises, or training. *Job Evaluation:* Aims to establish a fair and equitable compared holistically, considering the overall complexity, responsibility, and
internal pay structure by determining the relative value of various jobs. 3. *Frequency:*
*Performance Appraisal:* Often conducted annually or periodically to assess an
employee's performance over a specific time frame. *Job Evaluation:* Typically done
periodically as part of establishing or updating the organization's compensation
structure. 4. *Scope:* - *Performance Appraisal:* Focuses on the performance of an
individual employee in their current role. *Job Evaluation:* Examines the overall worth
of different jobs, considering factors like responsibilities, skills, and working conditions.
5. *Process:*- *Performance Appraisal:* Involves setting performance goals, ongoing
feedback, performance reviews, and discussions between employees and supervisors.
*Job Evaluation:* Involves analyzing job descriptions, determining the value of jobs
based on predefined criteria, and establishing a job hierarchy. 6. *Outcomes:* -
*Performance Appraisal:* Results in individualized feedback, development plans, and
decisions related to compensation or career advancement for specific employees-*Job
Evaluation:* Establishes the relative value of jobs within the organization, influencing
decisions related to internal pay equity.