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Block 4 Importance of HR Planning

Unit 3 Retention Of Qualified And Technical Personnel (Competency Mapping And Performance Appraisal)

1) Explain the relevance of retaining qualified and technical employees.

Retaining qualified and technical employees is highly relevant for several reasons:

• Reduced costs: When an organisation invests in the recruitment, selection, and training of an employee, it incurs significant costs. When such an employee leaves, this investment is lost, and the organisation has to spend more resources to recruit and train a replacement.
• Preservation of knowledge and skills: Qualified and technical employees possess valuable skills, knowledge, and experience that are critical to an organisation’s success. Losing such employees means losing this expertise and the ability to achieve individual and organisational goals.
• Organisational culture and climate: Existing employees are familiar with the organisational culture, climate, and policies, allowing them to be more productive and effective. New employees need time to adjust, which can reduce productivity.
• Established relationships: Existing employees have built relationships with their superiors, which allows for better communication and understanding, and better performance..
• Reduced disruption: Recruiting and training new employees can disrupt workflows and cause delays, whereas retaining experienced staff ensures smoother operations.
• Increased employee morale: When employees see that their employer values them enough to invest in their career and wellbeing, it enhances their commitment and morale.
• Potential for growth: Organisations sometimes try to rehire former employees, as they know the organisation’s culture and also have the added benefit of experience in other organisations.

2) Discuss any two strategies for retaining employees.

Here are two strategies for retaining employees, as outlined in the sources:

• Motivation: Organisations must ensure that employees are adequately motivated by creating a positive work environment that encourages both intrinsic and extrinsic motivation.
  • Intrinsic motivation comes from within, where the employee feels the need to perform well and achieve their goals.
  • Extrinsic motivation is driven by external factors, such as rewards or promotions.
  • HR departments can increase motivation by providing training programmes, workshops, and interventions, creating challenging objectives, and aligning tasks to employee capabilities.
• Training and career planning: Providing regular training programmes to enhance technical and behavioural skills shows employees that the organisation is invested in their individual development.
  • Development programmes are long-term and can span years.
  • A well-structured career planning programme can ensure employees feel they have a promising future with the organisation.
  • These programmes not only enhance employee effectiveness but also improve loyalty.

3) Explain the concept of competency mapping and describe the steps involved in its process.

Competency mapping is the process of identifying an individual employee’s strengths and potential. It is used by organisations to understand the competencies of each employee, so that they can effectively assign responsibilities and make optimal use of their abilities.

• It helps both the organisation and the individual employee by highlighting the strengths and areas for development.
• Competency mapping can look at a range of aspects including technical, behavioural, communication, teamwork, leadership, and adaptability to stress.
• It can also be used for recruitment, succession planning, identifying training needs, and promotions.

Here are the steps involved in competency mapping:

• Job analysis and questionnaires: Employees are asked to fill out a questionnaire to provide information about their current work, abilities, and skills needed for the job. Job analysis is conducted to determine the present activity of the employee.
• Competency creation: Based on the job descriptions, a competency framework is created and presented to the HR department for agreement and additions.
• Data collection: Different techniques are used to collect information, which include questionnaires, job analysis, interviews, and observations.
• Repertory grid: The important attributes of an employee are identified. A bipolar scale is then created for each attribute, with opposing characteristics at each end of the scale.
• Analysis and development plans: After the data is gathered, it is analysed, and development plans are created for the employees based on their results.

4) Define performance appraisal and discuss its benefits.

Performance appraisal is a process of measuring and evaluating an employee's job performance. This process is used to assess the efficiency and effectiveness of the employee's work and helps in giving feedback.

The benefits of performance appraisal include:

• Self-awareness: Employees become more aware of their performance, strengths, and weaknesses, allowing them to improve.
• Performance improvement: It provides specific feedback on performance, which can lead to improvement.
• Goal alignment: It ensures employees are clear about their roles and goals within the organisation, reducing ambiguity.
• Training needs: Performance appraisals identify training needs and areas where employees may require development.
• Career development: It provides input for career planning, development, and promotions.
• Organisational effectiveness: It helps the organisation identify the strengths and weaknesses of its employees and provides a basis for promotions, transfers, and other HR decisions.
• Improved communication: Performance appraisals provide opportunities for communication and feedback between employees and supervisors.

5) Discuss any five traditional methods of performance appraisal.

Here are five traditional methods of performance appraisal:

• Straight ranking method: Employees are compared to each other and ranked from best to worst, based on their overall performance. Numerical ranks are assigned.
• Paired comparison technique: Each employee is compared to every other employee in pairs, on each trait. Rank is then assigned to each employee. It is easier than straight ranking, but is still tedious with a large number of employees.
• Man-to-man comparison method: A scale is created for various factors (e.g., leadership, communication, honesty) and each employee is compared against this scale, using a "key man" as a benchmark for each factor.
• Checklist Method: A checklist of performance-related behaviours is used to evaluate the employees. The rater notes whether the employee demonstrates each behaviour.
• Critical incident method: This method involves recording specific examples of an employee’s positive and negative behaviours during a given period. These incidents are then used to evaluate overall performance.

6) Describe any two modern methods of performance appraisal.

Here are two modern methods of performance appraisal:

• Assessment centres: Multiple appraisal methods and appraisers are used in an assessment centre, including interviews, written tests, group discussions and situational exercises. The appraisers, who may be higher-level managers within the company or from an external agency, then evaluate each employee and submit a summary report.
  • Assessment centres provide a comprehensive view of an employee, but can be time-consuming and costly.
  • They also require training for the appraisers and a focus on clear communication.
• 360-degree performance appraisal: This involves collecting feedback from an employee’s superiors, subordinates, peers, and the employee themselves, thus providing a complete view of their performance.
  • Self-assessments help employees understand their strengths and weaknesses.
  • Personal bias and rivalry need to be avoided, and employees may need training to accept feedback, especially from subordinates.
  • This method is one of the most effective for the development of the employee.
• Management by Objectives (MBO): In MBO, goals are created based on the organisation’s objectives. Individual goals are developed with a discussion between the superior and the employee. Employees are then supervised and given help as needed to meet their goals. The employees are also given regular feedback during the process. The main focus is goal setting, participation, and feedback. This method is effective as it motivates employees to perform better, reduces conflict, and increases participation.