What are the Types Of Non- Monetary Methods in Human Resource Management
Following are the Types of Non- Monetary Methods in Human Resource Management
1)Skills Inventory:
Skill inventory means a record of capabilities. It classifies employees as per their skills. Employees' behavior and their skills are the easiest way by which they can be evaluated. These abilities are judged on the basis of employees' qualifications, training acquired, experience gained, and other additional talents. On the basis of their potentiality, the assessment is made about how much longer their services can be best utilized.
2) Performance Evaluation Methods:
Another way by which human resources can be evaluated is on the basis of performance. The two methods by which performance evaluation can take place is as follows:
A) Rating:
Under this method, a certain scale is set to evaluate the performance of a worker. Ratings are given to the employees on the basis of the degree of intelligence they possess, professional knowledge, and interpersonal proficiency they are having their ability to judge the situations, etc.
i) Ranking:
Under this method, individuals are evaluated on the basis of one or more aspects. The ranking is considered as another form of rating. For example, when an evaluator is asked to appraise the workers on the basis of their leadership qualities, in this situation, ranking can be done.
Types of procedure that can be followed for ranking are:
a) Simple Ranking:
It is the simplest procedure in which the evaluator ranks the employees on specific dimensions and ranks them from higher to lower rank For example, in the case of punctuality, one who is most punctual is given the highest rank and one who is late maximum times is given the lowest rank.
b) Alternative Ranking:
Under this ranking method, one person with the highest value and one with the lowest value are selected. A similar procedure is followed for all other persons. This makes the ranking method simple and reliable.
c) Paired Comparison:
In this method, every employee is compared with other employees and then the ranking is done. In this way, the best ones can easily be picked up from the better ones.
3) Potential Assessment:
Potential assessment, as the name denotes, is the evaluation of the capability of the human resource of an organization for the future. The main approach used for assessing potential is the trait approach. This approach focuses on identifying the traits possessed by the workers, which are required for a particular job position, and also determines the degree of their presence in the workers. As the development of an individual depends upon his potentiality, therefore potential assessment plays a very critical role in calculating the value of human resources non-monetarily.
4) Attitude Measurement:
Attitude is the mirror of one's personality. Organizations following attitude measurement techniques can easily understand the viewpoints of their employees like whether the employees are satisfied with their job or not, are they happy with the working conditions, do they want an increment in their salary, or are they satisfied with the organization as a whole, etc.
These are certain questions that can be answered easily by evaluating the attitude of the employees. By the study of attitude. management can also obtain information about the feelings of the employees working under them. One of the very common methods of determining this perspective of an employee is the questionnaire method, in which several questions can be asked and the employee can respond from the given options. For example,
i) Excellent (iv)
ii) Good (ii) iii) Average (iii)
iv) Below Average (i)
5) Subjective Expected Utility:
This concept of subjective expected utility' consists of two more concepts, viz., utility and subjectivity. . Second, subjectivity means an individual's own point of view regarding the possibility of any event. Some of these methods are paired comparison, ranking methods, and magnitude estimation.
The magnitude estimation method is concerned with allocating numbers to denote a property's magnitude. If a property is assigned a zero number, then it indicates that the value of the property is nil but if the number assigned is high it means that the property has a high value.