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01/2005 Thomas H. Jäkel 1
Human Resource ManagementHuman Resource Human Resource ManagementManagement
IPM 213IPM 213IPM 213
Thomas H. JäkelThomas H. JThomas H. Jääkelkel
Phone 0-2729-6305E-Mail [email protected] 00--27292729--63056305EE--MailMail [email protected]@siricon.com
01/2005 Thomas H. Jäkel 2
Recommended TextRecommended TextTitle:Human Resource ManagementNinth Edition
Author:John M. Ivancevich
Publisher:McGraw-HillISBN: 007-123248-6
01/2005 Thomas H. Jäkel 3
RoadmapRoadmapWhat is Human Resource Management?Strategic Management Approach to Human Resource ManagementHuman Resource PlanningJob Analysis and Competency ModelRecruitmentSelectionMid-Term Examination
Performance Evaluation and ManagementCompensation: An OverviewCompensation: Methods and PoliciesEmployee Benefits and ServicesTraining and DevelopmentCareer Planning and DevelopmentOrganizational DevelopmentReviewFinal Examination
01/2005 Thomas H. Jäkel 4
What isHuman Resource Management?
What isWhat isHuman Resource Human Resource Management?Management?
ChapterChapter
1
01/2005 Thomas H. Jäkel 5
Human Resource ManagementHuman Resource Management
Human Resource Management is the function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals.
Equal employment opportunity complianceJob analysisHuman resource planningEmployee recruitment, selection, motivation, and orientationPerformance evaluation and compensationTraining and developmentLabor relationsSafety, health, and wellness
It is action-orientedIt is people-orientedIt is globally-orientedIt is future-oriented
01/2005 Thomas H. Jäkel 6
Strategic Importance of HRMStrategic Importance of HRM
The increased strategic importance of HRM means that:
Human resource specialists must show that they contribute to the goals and mission of the firm
The actions, language, and performance of the HRM function must be:
MeasuredPrecisely communicatedEvaluated
01/2005 Thomas H. Jäkel 7
NoteNote
The new strategic The new strategic positioning of HRM positioning of HRM means that means that accountability must accountability must be taken seriouslybe taken seriously
01/2005 Thomas H. Jäkel 8
Key Strategic HRM ConceptsKey Strategic HRM Concepts
Analyzing and solving problems from a profit-oriented, not just a service-oriented, point of view
Assessing and interpreting costs or benefits of such HRM issues as productivity, salaries and benefits, recruitment, training, absenteeism, overseas relocation, layoffs, meetings, and attitude surveys
Using planning models that include realistic, challenging, specific, and meaningful goals
Preparing reports on HRM solutions to problems encountered by the firm
Training the human resources staff and emphasizing the strategic importance of HRM and the importance of contributing to the firm’s profits
01/2005 Thomas H. Jäkel 9
NoteNote
If the HRM function is If the HRM function is to be successful, to be successful, managers in other managers in other functions must be functions must be knowledgeable and knowledgeable and involvedinvolved
01/2005 Thomas H. Jäkel 10
HRM and Organizational EffectivenessHRM and Organizational Effectiveness
Criteria and ComponentsPerformanceLegal complianceEmployee satisfactionAbsenteeismTurnoverTraining effectivenessTraining return on investmentGrievance ratesAccident rates
In order for a firm to survive and prosper and earn a profit, reasonable goals in each of these components must be achieved. In most organizations, effectiveness is measured by the balance of such complementary characteristics as reaching goals, employing the skills and abilities of employees efficiently, and ensuring the influx and retention of well-trained and motivated employees.
01/2005 Thomas H. Jäkel 11
Objectives of the HRM FunctionObjectives of the HRM Function
Helping the organization reach its goalsEmploying the skills and abilities of the workforce efficientlyProviding the organization with well-trained and well-motivated employeesIncreasing to the fullest the employee’s job satisfaction and self-actualizationDeveloping and maintaining a quality of work life that makes employment in the organization desirableCommunicating HRM policies to all employeesHelping to maintain ethical policies and socially responsible behaviorManaging change to the mutual advantage of the organization’s stakeholdersManaging increased urgency and faster cycle time
01/2005 Thomas H. Jäkel 12
Who Performs HRM ActivitiesWho Performs HRM Activities
In most organizations two groups perform HRM activities:HR manager-specialists (staff)Operating managers (line)
Competencies neededCommunication skillsProblem solvingLeadershipRecruiting/staffingEmployment lawTraining and developmentTechnologyForecastingCompensation designBenefits design and administrationAccounting and financeRecord keeping
01/2005 Thomas H. Jäkel 13
NoteNote
The HR department has a responsibility to be a proactive, integral component of management and the strategic planning process
01/2005 Thomas H. Jäkel 14
HRMHRM’’s Place in Managements Place in Management
HRM must:ascertain specific organizational needs for the use of its competenceevaluate the use and satisfaction among other departmentseducate management and employees about the availability and use of HRM services
01/2005 Thomas H. Jäkel 15
HRM StrategyHRM Strategy
The HRM strategy will help aggregate and allocate a firm’s resources into a unique entity on the basis of:
Its internal strengths and weaknessesChanges in the environmentThe anticipated actions of competitors
01/2005 Thomas H. Jäkel 16
Strategy, Objectives, Policies, RulesStrategy, Objectives, Policies, Rules
Strategy – The plan that integrates major objectivesStrategy – The plan that
integrates major objectives
Objectives – Goals that are specific and measurable
Objectives – Goals that are specific and measurable
Policies – Guides to decision making
Policies – Guides to decision making
Procedures/Rules – Specific directions for decision making
Procedures/Rules – Specific directions for decision making
01/2005 Thomas H. Jäkel 17
Levels of PerformanceLevels of Performance
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Process1
Process2
Process3
Process1
Process2
Process3
The OrganizationLevel
The ProcessLevel
The Job/Performer Level
01/2005 Thomas H. Jäkel 18
SummarySummary
HRM is action-oriented, individual-oriented, globally-oriented, and future oriented - It focuses on satisfying the needs of individuals at work
HRM is a necessary function - Effectively performed, it can make the crucial difference between successful and unsuccessful organizations
One of the challenges faced in HRM is that many decisions require input from both operating managers and HR specialists
This dual role can lead to conflict, or it can result in more effective HRM decisions
01/2005 Thomas H. Jäkel 19
A Strategic Management Approach to Human Resource Management
A Strategic Management A Strategic Management Approach to Human Approach to Human Resource ManagementResource Management
chapterchapter
2
01/2005 Thomas H. Jäkel 20
A Diagnostic HRM FrameworkA Diagnostic HRM Framework
The diagnostic approach
Can help operating managers focus on a set of relevant factors
Offers a map that aids a person in seeing the whole picture or parts of the picture
01/2005 Thomas H. Jäkel 21
1. Diagnosis 2. Prescription
4. Evaluation 3. Implementation
Diagnostic Approach to HRMDiagnostic Approach to HRM
01/2005 Thomas H. Jäkel 22
Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
01/2005 Thomas H. Jäkel 23
Internal & External EnvironmentInternal & External Environment
Human ResourceCore Functions
Corporate Environment
Corporate Environment
Geographical Location
Educational Factors
Unions
Experience
Productivity
Laws & Regulations
Minorities
Nature of Task
Economy
Leadership
Work Group
Strategy, Goals
Shareholders
Culture
Older Employees
Competitiveness
Labor Force
01/2005 Thomas H. Jäkel 24
Key Job FactorsKey Job Factors
Degree of knowledge and ability to use information technologyDegree of empowermentDegree of physical exertion requiredDegree of environmental unpleasantnessPhysical location of workTime dimension of workHuman interaction on the jobDegree of variety in the taskTask identityTask differences and job design
01/2005 Thomas H. Jäkel 25
Enhance & Sustain Competitive AdvantageEnhance & Sustain Competitive Advantage
Employment securitySelectivity in recruitingHigh wagesIncentive payEmployee ownershipInformation sharingParticipation and empowermentTeams and job redesignTraining as skill developmentCross-utilization and cross trainingSymbolic egalitarianism Wage compressionPromotion from withinLong-term perspectiveMeasurement of practicesOverarching philosophy
01/2005 Thomas H. Jäkel 26
Three Levels of StrategyThree Levels of Strategy
Strategic(long term)
Managerial(medium term)
Operational(short term)
01/2005 Thomas H. Jäkel 27
HR Activities by Level of StrategyHR Activities by Level of Strategy (1)(1)
LEVEL Employee Selection and
Placement
Rewards (Pay and Benefits)
Appraisal Development
Strategic(long term)
Specify the character-istics of people needed to run business over long term
Establish reward program that will be competitive with domestic and inter-national competitors
Determine the level type of perform-ance crucial for the growth of the firm
Plan development experiences for staff
Examine labor force trends
Establish reward system that is linked to strategic goals
Develop equitable performance criteria
Plan development program with flexibil-ity necessary to adjust to change
Analyze immigration flows into the country
Link appraisal to accomplishment of long-term objectives
01/2005 Thomas H. Jäkel 28
HR Activities by Level of StrategyHR Activities by Level of Strategy (2)(2)
LEVEL Employee Selection and
Placement
Rewards (Pay and Benefits)
Appraisal Development
Managerial(medium term)
Make longitudinal validation of selection criteria
Set up five-year compensation pro-gression plan for individuals
Validate systems that relate current conditions and future needs
Establish general management devel-opment program
Develop recruitment marketing plan
Set up cafeteria-type benefits menu
Establish assessment centers for development
Provide for organiza-tional development
Develop approach to build labor resource pool
Set up retirement packages
Encourage self-development
01/2005 Thomas H. Jäkel 29
HR Activities by Level of Strategy HR Activities by Level of Strategy (3)(3)
LEVEL Employee Selection and
Placement
Rewards (Pay and Benefits)
Appraisal Development
Operational(short term)
Prepare staffing plans Administer wage and salary program
Use annual or more frequent appraisal system
Use specific job-skill training
Prepare recruitment plans
Administer benefits packages
Use day-to-day performance review systems
Use on-the-job training
Review performance of workers daily
Use Web-based training on a 24/7 basis
01/2005 Thomas H. Jäkel 30
Strategic Challenges Facing HRMStrategic Challenges Facing HRM
Caliber of theWorkforce
OrganizationalRestructuring
andDownsizing
ContingentWorkers
Technology
Diversity:Building A
CompetitiveWorkforce
01/2005 Thomas H. Jäkel 31
Abilities ofEmployees
Employees’Attitudes andPreferences
Motivation ofEmployees
Personality ofEmployees
People and the Diagnostic FrameworkPeople and the Diagnostic Framework
01/2005 Thomas H. Jäkel 32
Desirable End ResultsDesirable End Results
Organizational effectiveness is critically influenced by human resource (HR) management practices
Changes in staffing, training, and compensation form an integral part of a coordinated change effort
HR management systems must be in alignment with other management systems
01/2005 Thomas H. Jäkel 33
SummarySummary
A sound HRM program can contribute to organizational end results.Before choosing an HRM program, the diagnostic approach suggestsexamining:the nature of employeesthe external environmental influencesthe internal environmental influencesorganizational factors
HRM has become a strategic area now recognized as important in creating and implementing the overall strategies of a firm.
Organizational factors must be taken into account to maximize the effectiveness of HRM.
The work sector in which the organization operates is a key factor on management systems and the HRM function
01/2005 Thomas H. Jäkel 34
Human Resource PlanningHuman Resource PlanningHuman Resource Planning
chapterchapter
5
01/2005 Thomas H. Jäkel 35
Human Resource PlanningHuman Resource Planning
Both a process and a set of plansHow organizations assess the future supply of and demand for human resourcesProvides mechanisms to eliminate any gaps between supply and demandDetermines the number and types of employees to be recruited into the organization or phased out of it
01/2005 Thomas H. Jäkel 36
Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
01/2005 Thomas H. Jäkel 37
Human Resource Planning ProcessHuman Resource Planning Process
Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans
Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans
Annual employment requirementsNumbersSkillsOccupation categories
Annual employment requirementsNumbersSkillsOccupation categories
Existing employment inventoryAfter application of expected lossand attrition rates
Existing employment inventoryAfter application of expected lossand attrition rates
Decisions-Layoffs
- Retirement- etc
Decisions-Layoffs
- Retirement- etc
EndEndEndEnd
If surplusIf surplus If ShortageIf Shortage
EndEndVariancesVariances
Decisions-Overtime
-Recruitment-etc
Decisions-Overtime
-Recruitment-etc
Strategic Planning HR Demand HR Supply
If none
ActionDecisions
01/2005 Thomas H. Jäkel 38
Levels of PerformanceLevels of Performance
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Process1
Process2
Process3
Process1
Process2
Process3
The OrganizationLevel
The ProcessLevel
The Job/Performer Level
01/2005 Thomas H. Jäkel 39
Factors Affecting PlanningFactors Affecting Planning
Goals of the controlling interests in the organizationGovernment policiesChanging demographics and the future composition of the workforce
01/2005 Thomas H. Jäkel 40
Strategic and Human Resource PlanningStrategic and Human Resource Planning
Strategic Planning –an organization’s decision about:
What it wants to accomplish (its mission)How it wants to go about accomplishing it
HR planning is important for developing a strategic planHR planning is critical to the implementation of the strategic plan
01/2005 Thomas H. Jäkel 41
Strategic Human Resource ManagementStrategic Human Resource Management
The acknowledgement that HR policies and practices have critical linkages with an organization’s overall strategyCentral premise is that HR policies will have direct effects on an organization’s profitabilityHR must “fit” strategically with the mission of the organization
01/2005 Thomas H. Jäkel 42
Four Stages of HR PlanningFour Stages of HR Planning
Situation analysis or environmental scanningForecasting demand for human resourcesAnalysis of the supply of human resourcesDevelopment of plans for action
01/2005 Thomas H. Jäkel 43
Analysis and ScanningAnalysis and Scanning
Strategic plan must adapt to environmental circumstancesHRM is a primary mechanism to be used during the adaptation process
e.g., rapid technological changes in the environment demand employees with new skillsan effective HR plan that supports recruitment and selection allows the firm to move quickly to remain competitive
Analyzing the Current Supply of EmployeesSkills Inventory
Data summarizing the employee’s pastData summarizing status of present skillsData that focus on the future
Management InventoryMaintaining the Skills Inventory
InterviewQuestionnaireData storage and maintenance
01/2005 Thomas H. Jäkel 44
Action Decisions: Shortage of EmployeesAction Decisions: Shortage of Employees
OvertimeTraining and promotions of present employeesRecruitment and training of less-skilled employeesRecall of employees previously laid offUse of part-time workersUse of contingent workers
01/2005 Thomas H. Jäkel 45
4. Demotions 5. Layoffs 6. Terminations
2. Earlyretirements
3. Creation ofwork
1. Attrition
Action Decisions: Surplus of EmployeesAction Decisions: Surplus of Employees
01/2005 Thomas H. Jäkel 46
Human Resource Information SystemsHuman Resource Information Systems
Integrated approach to acquiring, storing, analyzing, and controlling the flow of information about an organization
Useful in nearly all HRM functionsCan increase efficiency and response times of labor/time intensive human resource activities
Specialized HRIS applicationsIntegrated HRIS for use by all employeesExecutive information system (EIS)Succession planning
01/2005 Thomas H. Jäkel 47
Safeguarding Privacy in an HRISSafeguarding Privacy in an HRIS
Review information-gathering practices to determine the best way to collect dataLimit the information collected to what is relevant to a specific business decisionInform employees about the types of information kept on file and how that information is usedLet employees inspect and (if necessary) correct the informationmaintained on themKeep sensitive information separate from other recordsLimit the internal use of personal information to those activities where it is necessaryDisclose personal information about an employee to outsiders only after the employee consents
01/2005 Thomas H. Jäkel 48
SummarySummaryThere is no one best method for conducting HR planning
Methods and techniques all differ from organization to organization
Many companies do not devote enough time and energy to the HR planning process
An effective HR plan should work in partnership with a strategic plan
Human resource planning can be an integral part of the HRM program
It is directly related to: recruitment, selection, training, and promotion
By matching supply and demand, the organization can know:how many people of what type it needs to fill positions from within (by promotion and training)how many people it must acquire from outside (by recruiting and selection)
01/2005 Thomas H. Jäkel 49
Job Analysis and Competency ModelingJob Analysis and Job Analysis and Competency ModelingCompetency Modeling
chapterchapter
6
01/2005 Thomas H. Jäkel 50
IntroductionIntroduction
Organizations must have a systematic way to determine which employees are expected to perform a particular function or task that must be accomplishedThe cornerstone of the organization is the set of jobsperformed by its employees
The jobs provide the mechanism for coordinating and linking the various activities of the organization that are necessary for success
01/2005 Thomas H. Jäkel 51
NoteNote
Studying and under-standing jobs through the process known as job analysis is a vital part of any HRM program.
01/2005 Thomas H. Jäkel 52
Job analysis provides answers to Job analysis provides answers to ……
How much time is taken to complete important tasks?Which tasks are grouped together and considered a job?How can a job be designed or structured so that the employee’s performance can be enhanced?What kinds of behaviors are needed to perform the job?What kind of person (i.e., traits and experience) is best suited for the job?How can the information acquired by a job analysis be used in the development of HRM programs?
01/2005 Thomas H. Jäkel 53
The Vocabulary of Job AnalysisThe Vocabulary of Job Analysis
Job analysis – A purposeful, systematic process for collecting information on the important work-related aspects of a jobJob description – The principal product of a job analysis
Represents a written summary of the job as an identifiable organizational unit
Job specification – A written explanation of the knowledge, skills, abilities, traits, and other characteristics necessary for effective performance on a given jobTasks – Coordinated and aggregated series of work elements used to produce an output
e.g., a unit of production or service to a clientPosition – Consists of the responsibilities and duties performed by an individual
There are as many positions in an organization as there are employeesJob – Group of positions that are similar in their duties
e.g., computer programmer or compensation specialistJob family – Group of two or more jobs that have similar duties
01/2005 Thomas H. Jäkel 54
The Steps in Job AnalysisThe Steps in Job Analysis
Examine the total organization and the fit of each jobDetermine how job analysis information will be usedSelect jobs to be analyzedCollect data by using acceptable job analysis techniquesPrepare job descriptionPrepare job specification
01/2005 Thomas H. Jäkel 55
Levels of PerformanceLevels of Performance
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Process1
Process2
Process3
Process1
Process2
Process3
The OrganizationLevel
The ProcessLevel
The Job/Performer Level
01/2005 Thomas H. Jäkel 56
The Uses of Job AnalysisThe Uses of Job Analysis
Job designPlanningRecruitmentSelection & trainingStrategic planningPerformance evaluationCompensation & benefitsEEO complianceFollow-up evaluation
01/2005 Thomas H. Jäkel 57
Who Should Conduct the Job Analysis?Who Should Conduct the Job Analysis?
ExternalJob Analysis
Expert
InternalJob Analysis
Expert
Supervisor Job Incumbent
01/2005 Thomas H. Jäkel 58
Methods of Data CollectionMethods of Data Collection
Observation Interviews
Questionnaires Job IncumbentDiaries or Logs
01/2005 Thomas H. Jäkel 59
Specific Quantitative TechniquesSpecific Quantitative Techniques
Functional Job Analysis
Position Analysis Questionnaire
Management Position Description Questionnaire
01/2005 Thomas H. Jäkel 60
Position Analysis Questionnaire (PAQ)Position Analysis Questionnaire (PAQ)
Major sections of the PAQ:Information inputMental processesWork outputRelationships with other peopleJob contextOther job characteristics
01/2005 Thomas H. Jäkel 61
Management Position DescriptionManagement Position Description
General informationDecision makingPlanning and organizingAdministeringControllingSupervisingConsulting and innovatingContactsCoordinatingRepresentingMonitoring business indicatorsOverall ratingsKnowledge, skills, and abilitiesOrganization chartComments and reactions
01/2005 Thomas H. Jäkel 62
Job DescriptionsJob Descriptions
A primary output of a systematic job analysisA written description of what the job entailsThorough, accurate, and current job descriptions are important to an organization
restructuring and downsizingemployee motivation and rewardstechnological changes in work environmentslegal compliance with employment laws
01/2005 Thomas H. Jäkel 63
Job Descriptions IncludeJob Descriptions Include
Equipment Environment Activities
Job Title Summary
01/2005 Thomas H. Jäkel 64
Job SpecificationsJob Specifications
Evolve from the job descriptionAddress the question:
“What personal traits and experience are needed to perform the job effectively?”
Useful in offering guidance for recruitment and selectionAny trait or skill stated on the job specification should actually be required for performance on the job
Job specifications must differentiate between:Essential skills – those for which alternative ways of accomplishing the job are not possibleNonessential skills – can be accommodated by changing the structure or work methods of the job
Under the Americans with Disabilities Act:If disabled people could accomplish the job successfully after accommodation, then it should be done
01/2005 Thomas H. Jäkel 65
NoteNote
Job design integrates work content, qualifications, and rewards for each job in a way that meets the needs of employees and the organization.
01/2005 Thomas H. Jäkel 66
Personaland WorkOutcomes
Core JobDimensions
CriticalPsychological
States
Skill variety
Task identify
Task significance
Experiencedmeaningfulnessof the work
Experiencedresponsibilityfor outcomesof the work
Knowledge of theactual results ofthe work activities
Autonomy
Feedback
High internalwork motivation
High-qualitywork performance
High satisfactionwith the work
Low absenteeismand turnover
Employee GrowthNeed Strength
Job Characteristics Model of Work MotivationJob Characteristics Model of Work Motivation
01/2005 Thomas H. Jäkel 67
Job Enlargement and Job EnrichmentJob Enlargement and Job Enrichment
Job EnlargementEmployees given a greater variety of things to doHorizontal expansion of work
Greater number of tasksResponsibility and authority not increased
Job EnrichmentJob is expanded verticallyIncreased responsibilityFocus on growth and recognition
01/2005 Thomas H. Jäkel 68
SummarySummary
Job analysis plays a major role in HRM activities and programs
The job is the major building block of an organization
Each characteristic of each job in an organization must be clearly understood
01/2005 Thomas H. Jäkel 69
RecruitmentRecruitmentRecruitment
chapterchapter
7
01/2005 Thomas H. Jäkel 70
RecruitmentRecruitment
Organizational activities that influence:Number and types of applicants who apply for a jobWhether the applicants accept jobs that are offered
Directly related to HR planning and selectionRepresents the first contact between organizations and prospective employees
01/2005 Thomas H. Jäkel 71
Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
01/2005 Thomas H. Jäkel 72
External Influences on RecruitmentExternal Influences on Recruitment
Union RestrictionsLabor Market
Conditions
Composition ofthe Labor Force
Location of theOrganization
GovernmentRestrictions
Competitiveness
01/2005 Thomas H. Jäkel 73
Internal InfluencesInternal Influences
Corporate Culture Nature of the Task
Work GroupLeader’s style and
experience
Strategy Goals
01/2005 Thomas H. Jäkel 74
Guidelines for RecruitmentGuidelines for Recruitment
Post notices regarding the availability of a jobPublish a list of qualifications necessary to fill the jobDistinguish between essential qualifications and desirable qualificationsDo not rely on word-of-mouth sources of recruitsUse recruiting sources that will reach the greatest number of potential applicants in the job marketBe wary of establishing qualifications that might directly or indirectly exclude members of protected groupsBe sure job qualifications are applied to every applicant in a consistent manner
01/2005 Thomas H. Jäkel 75
The OrganizationThe Organization’’s View of Recruitings View of Recruiting
Recruiting Requirements
Organizational Policies and Practices
Organizational Image
01/2005 Thomas H. Jäkel 76
Preferences of recruits for
organizations and jobs
Preferences of recruits for
organizations and jobs
Job search and finding a job: The
recruit
Job search and finding a job: The
recruit
Potential EmployeePotential Employee’’s View of Recruitings View of Recruiting
Applicants’ abilities, attitudes, and preferences are based on:Work experiencesInfluences by parents, teachers, and others
These influences affect them in two ways:How they set job preferencesHow they go about seeking a job
01/2005 Thomas H. Jäkel 77
Responsibilities for RecruitingResponsibilities for Recruiting
In larger organizations, the HR department does the recruiting
In smaller organizations, multipurpose HR people or operating managers recruit and interview applicants
01/2005 Thomas H. Jäkel 78
Internal RecruitingInternal Recruiting
Job posting and bidding
Inside moonlighting
Employees’ friends
01/2005 Thomas H. Jäkel 79
External RecruitingExternal Recruiting
Media Advertising E-recruiting
Employment Agencies
Executive Search Firms
Special Events Recruiting
College RecruitingSummer Internships
01/2005 Thomas H. Jäkel 80
EE--Recruiting: Key Issues to Keep in MindRecruiting: Key Issues to Keep in Mind
Be careful not to inadvertently screen out diverse candidatesMake sure the job opening is communicated to large portions of the target populationRecruiters need to figure out a way to track applicants who apply for online job postingsEmail communication might be too casual
01/2005 Thomas H. Jäkel 81
Consequences of Job Preview: Consequences of Job Preview: Traditional PreviewTraditional Preview
Sets initial job expectations too highJob is typically viewed as attractive, stimulating, and challengingHigh rate of acceptance of job offersWork experience disconfirms expectationsDissatisfaction and realization that job is not matched to needsLow job survival, dissatisfaction, frequent thoughts of quitting
01/2005 Thomas H. Jäkel 82
Consequences of Job Preview: Consequences of Job Preview: Realistic PreviewRealistic Preview
Sets job expectations realisticallyJob may or may not be attractive, depending on individual’s needsSome accept, some reject job offerWork experience confirms expectationsSatisfaction; needs matched to jobHigh job survival, satisfaction, infrequent thoughts of quitting
01/2005 Thomas H. Jäkel 83
Alternatives to RecruitmentAlternatives to Recruitment
Overtime
Employee Leasing
Temporary Employment
01/2005 Thomas H. Jäkel 84
Evaluating RecruitingEvaluating Recruiting
Effectiveness of recruiters
Sources of recruits
01/2005 Thomas H. Jäkel 85
SummarySummary
A better job of recruiting and matching employees to jobs will mean:
Lower employee turnoverGreater employee satisfaction and organizational effectiveness
The Internet is revolutionizing organizational recruitment
01/2005 Thomas H. Jäkel 86
SelectionSelectionSelection
chapterchapter
8
01/2005 Thomas H. Jäkel 87
NoteNote
Selection – the process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for the position available, considering current environmental conditions
01/2005 Thomas H. Jäkel 88
Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
01/2005 Thomas H. Jäkel 89
Internal Factors Influencing SelectionInternal Factors Influencing Selection
Organization characteristics that can influence the selection process:
SizeComplexityTechnological volatilityAttitude about hiring from within
01/2005 Thomas H. Jäkel 90
External Factors Influencing SelectionExternal Factors Influencing Selection
Federal government employment laws and regulationsState-specific regulationsSize, composition, and availability of local labor marketsEconomic, social, and political pressures on a community
01/2005 Thomas H. Jäkel 91
Selection CriteriaSelection Criteria
Formal EducationExperience and
Past Performance
PhysicalCharacteristics
PersonalCharacteristics and
Personality Type
01/2005 Thomas H. Jäkel 92
Reliability of Selection CriteriaReliability of Selection Criteria
Reliability – how stable or repeatable a measurement is over a variety of testing conditions
How to assess reliability:Test-retest reliabilityAlternative-form reliabilityInter-rater reliability
01/2005 Thomas H. Jäkel 93
Validity of Selection CriteriaValidity of Selection Criteria
Validity – addresses the questions of:What a selection tool measuresHow well it has measured it
It is not sufficient for a selection tool to be reliableThe selection tool must also be valid
Content Validity – degree to which a test, interview, or performance evaluation measures the skill, knowledge, or ability to perform
Construct Validity – extent to which a selection tool actually measures the unobservable trait that it claims to measure
Criterion-Related Validity – extent to which a selection technique can accurately predict one or more important elements of job behavior
Predictive ValidityConcurrent Validity
01/2005 Thomas H. Jäkel 94
Typical Selection Decision ProcessTypical Selection Decision Process
1. Preliminaryscreening
1. Preliminaryscreening
2. Employmentinterview
2. Employmentinterview
6. Physicalexamination6. Physical
examination
5. Selectiondecision
5. Selectiondecision
3. Employmenttests
3. Employmenttests
4. Background &reference checks4. Background &reference checks
Application blank Biographical Information Blank Interview
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Preliminary ScreeningPreliminary Screening
Application blanksUseful selection toolsSubject to same legal standards as any other selection method
Biographical information blank (BIB)Weighted application blank
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Employment InterviewEmployment Interview
Two strategies for effective us of interviews:Structuring the interview to be reliable and validTraining managers on best interview techniques
Unstructured interviewStructured interview
Behavioral description interview (BDI)Situational interview (SI)
01/2005 Thomas H. Jäkel 97
Employment TestsEmployment Tests
Mechanism that attempts to measure certain characteristics of individuals, e.g.,
Aptitudesmanual dexterityIntelligencepersonality
Should be validated before being used to make hiring decisionsJob sample performance testsCognitive ability tests
Wechsler Adult Intelligence ScaleWonderlinc Personnel TestCalifornia Test of Mental Maturity (adult level)
Psychomotor ability simulationsPersonality inventories and temperament testsPolygraph and honesty tests
01/2005 Thomas H. Jäkel 98
Reference Checks and RecommendationsReference Checks and Recommendations
Do not always provide an organization with meaningful information about applicantsConcerns over the legality of asking for and providing confidential information about applicantsLegal status surrounding reference-checking and providing recommendations is not clear
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Selection of ManagersSelection of Managers
Assessment centerseveral interviewswork samplesSimulationspaper-and-pencil tests of abilities and attitudes
Individuals evaluated on many dimensionsShown to be a valid way to select managers
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SummarySummary
The way that an organization hires employees is directly tied to other HR programsThe linkage with training is important
Putting more money into selection can significantly reduce the amount of money it must spend on training
A selection system will make some mistakesNo guarantee of successful job performance
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Performance Evaluation and ManagementPerformance Evaluation Performance Evaluation and Managementand Management
chapterchapter
9
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Performance ManagementPerformance Management
Process by which executives, managers, and supervisors work to align employee performance with the firm’s goals
Defines, measures, monitors, and gives feedback
Performance evaluation is a crucial part of a firm’s performance management process
The activity used to determine the extent to which an employee performs work effectively
Informal performance evaluation systemFormal performance evaluation system
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Levels of PerformanceLevels of Performance
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Process1
Process2
Process3
Process1
Process2
Process3
The OrganizationLevel
The ProcessLevel
The Job/Performer Level
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Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
01/2005 Thomas H. Jäkel 105
CommunicationLegal
complianceHRM research
MotivationHR and
employmentplanning
Development
Purposes of Formal Performance EvaluationPurposes of Formal Performance Evaluation
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NoteNote
To provide information that can serve the organization’s goals and that complies with the law, a performance evaluation system must provide accurate and reliable data.
This is enhanced if a systematic processis followed.
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Six Steps for a Systematic ProcessSix Steps for a Systematic Process
Establish performance standards for each position and the criteria for evaluationEstablish performance evaluation policies on when to rate, how often to rate, and who should rateHave raters gather data on employees’ performanceHave raters (and employees in some systems) evaluate employees’ performanceDiscuss the evaluation with the employeeMake decisions and file the evaluation
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Characteristics of Effective CriteriaCharacteristics of Effective Criteria
Reliability – a measure of performance must be consistentRelevance – a measure of performance must be related to the actual output of an incumbentSensitivity – criteria must be able to reflect the difference between high and low performersPracticality – the criteria must be measurable
Data collection cannot be inefficient or too disruptive
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Who Should Evaluate the Employee?Who Should Evaluate the Employee?
Immediate supervisorRating by a committee of several supervisorsRating by the employee’s peers (co-workers)Rating by the employee’s subordinatesRating by someone outside the immediate work situationSelf-evaluationRating by a combination of approaches
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360360--Degree Appraisal SystemsDegree Appraisal Systems
PositiveMultiple perspectives of a person’s performanceRatings can evaluate person based on actual contact and observationFeedback is provided from multiple directions (above, below, and peer)Upward feedback when anonymous, results in full participationLearning about weaknesses and strengths is motivation
NegativeFeedback from all sources can be overwhelmingRater can hide in a group of raters and provide harsh evaluationsConflicting ratings can be confusing and frustratingProviding feedback that is constructive requires a plan and well-trained raters
Not typically found in organizations
01/2005 Thomas H. Jäkel 111
Performance Evaluation MethodsPerformance Evaluation Methods
Individual Evaluation Methods
Multiple-Person Evaluation Methods
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Individual Evaluation MethodsIndividual Evaluation Methods
Individual Evaluation Methods
Graphic Rating Scale Forced Choice
Essay Evaluation
Critical Incident Technique
Checklists and Weighted ChecklistsBehaviorally
Anchored Rating Scales
Behavioral Observation
Scales
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Advantages and Disadvantages of Some Individual Advantages and Disadvantages of Some Individual Methods of Performance EvaluationMethods of Performance Evaluation
Individual Methods CommentsRating Scales Easy to use, easy to complete, relatively low cost; focuses too much on
person instead of on performance.
Forced Choice Selectively low cost, easy to use; difficult to explain to those evaluated.
Essay Good in providing specific feedback if evaluator is a good writer; difficult in making comparisons across those being evaluated.
Critical Incidents Time consuming, must be disciplined to log in incidents, reveals critical behaviors that can be fed back easily.
Behavior Scales Difficult to develop, time consuming, great for providing specific feedback to aid in improving performance.
01/2005 Thomas H. Jäkel 114
MultipleMultiple--Person Evaluation MethodsPerson Evaluation Methods
RankingPaired
Comparison
ForcedDistribution
Management byObjectives
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Advantages and Disadvantages of Some MultipleAdvantages and Disadvantages of Some Multiple--Person Methods of Performance EvaluationPerson Methods of Performance Evaluation
Multiple-Person Methods
Comments
Ranking and Paired Comparisons
Hard to use for providing feedback, good for making comparisons among employees.
MBO Focuses on results that are important, sometimes too short-term oriented, does not engage in comparisons among employees.
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MBO Program ProcessMBO Program Process
Supervisor and employee conduct meetings to define key tasks of the subordinate and to set a limited number of objectives (goals)Participants set objectives that are realistic, challenging, clear, and comprehensiveSupervisor, after consulting with the employee, establishes the criteria for assessing the accomplishment of the objectivesDates for reviewing intermediate progress are agreed upon and usedSupervisor and employee make any required modifications in the original objectivesFinal evaluation by the supervisor is made; counseling meeting is held with employeeObjectives for next cycle are set by employee after consulting with supervisor (keeping in mind previous cycle and future expectations)
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Problems with the MBO ProcessProblems with the MBO Process
Too much paperwork is involvedToo many objectives are set, and confusion occursMBO is forced into jobs where establishing objectives is extremely difficultFailure to tie in MBO results and rewardsToo much emphasis on the short termSupervisors are not trained in the MBO process and the mechanicsinvolvedOriginal objectives are never modifiedMBO is a used as a rigid control device that intimidates rather than motivates
01/2005 Thomas H. Jäkel 118
Problems in Performance EvaluationProblems in Performance Evaluation
Opposition to Evaluation
System Design and Operating Problems
Rater Problems
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EmployeesEmployees’’ Problems with Performance EvaluationProblems with Performance Evaluation
Employees do not understand the system or its purpose
Employees are not work-oriented
Evaluation may be below the employee’s expectations
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Rater ProblemsRater Problems
Rater Problems
Standards of Evaluation Halo Effect
Leniency or Harshness
Central Tendency Error
“Recency of Events” Error
Contrast Effects
Personal Bias (stereotyping;
“similar to me”)
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The Feedback InterviewThe Feedback Interview
Can be effective if the evaluation information is meaningful, clear, and helpfulFeeding back information can be quite stressful if the evaluation is:
considered unfairInaccuratepoorly designed
01/2005 Thomas H. Jäkel 122
SummarySummary
Properly performed, performance evaluation can contribute to:
organizational objectivesemployees’ development and satisfaction
These are goals of performance management
01/2005 Thomas H. Jäkel 123
Compensation: An OverviewCompensation: An Compensation: An OverviewOverview
chapterchapter
10
01/2005 Thomas H. Jäkel 124
CompensationCompensation
Deals with every type of reward individuals receive in exchange for performing organizational tasksMajor cost of doing businessChief reason why most individuals seek employmentAn exchange relationship
01/2005 Thomas H. Jäkel 125
Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
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Why do we compensate employees?Why do we compensate employees?
Payment for Services Rendered?Motivation?Productivity?Efficiency?Cooperation?Compliance?Creativity?Loyalty?Competitiveness?Social Reasons?Legal Reasons?…….?
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Compensation TypesCompensation TypesCompensation
Non-FinancialFinancial
Direct
• Wages• Salaries• Commissions• Bonuses• Expenses• Allowances• Contributions
Indirect
• Unemployment• Health• Pension• Retirement• Workers’ Comp• Pay for time not
worked• Employee
Services
The Job
• Skill Variety• Task Identity• Task Significance• Autonomy• Feedback
Job Environment
• Sound Policies• Competent Staff• Leadership Model• Status Symbols• Working
Conditions• Workplace
Flexibility
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Objective of CompensationObjective of Compensation
To create a system of rewards that is equitable to the employer and employee alike
The desired outcome is an employee who is:Attracted to the workMotivated to do a good job for the employer
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RequirementsRequirements
A Compensation system should
be:(* focus of this chapter)
Adequate*Equitable*
Balanced
Cost-effective
Secure
Incentive-providing*
Acceptable to the employee
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External Influences on CompensationExternal Influences on Compensation
Union RestrictionsLabor Market
Conditions
Composition ofthe Labor Force
Location of theOrganization
GovernmentRestrictions
Competitiveness
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NoteNote
Comparable Worth
Attempts to prove that employers systematically discriminate by paying women less than their work is intrinsically worth, versus what they pay men who work in comparable (equally valuable) positions – and to remedy this situation.
01/2005 Thomas H. Jäkel 132
Internal Influences on CompensationInternal Influences on Compensation
Corporate Culture Nature of the Task
Work GroupLeader’s style and
experience
Strategy Goals
01/2005 Thomas H. Jäkel 133
Pay and MotivationPay and Motivation
Motivation – set of attitudes and values that predisposes a person to act in a specific, goal-directed manner:
the direction of behavior (working to reach a goal)the strength of behavior (how hard or strongly the individual will work)
01/2005 Thomas H. Jäkel 134
SocialComparison
Theories
ExpectancyTheory
ReinforcementTheories
NeedsTheories
Herzberg’sTwo-Factor
Theory
Theories of MotivationTheories of Motivation
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Pay and EmployeesPay and Employees’’ SatisfactionSatisfaction
Pay Satisfaction – refers to an employee’s liking for or dislike of the employer’s compensation package (including pay and benefits)
Lawler’s Model – the distinction between the amount employees receive and the amount they think others are receiving is the immediate cause of pay satisfaction or dissatisfaction
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Pay dissatisfaction is a function of six Pay dissatisfaction is a function of six important judgments:important judgments:
A discrepancy between what employees want and what they receiveA discrepancy between a comparison outcome and what they getPast expectations of receiving more rewardsLow expectations for the futureA feeling of deserving or being entitled to more than they are gettingA feeling that they are not personally responsible for poor results
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Pay and EmployeesPay and Employees’’ ProductivityProductivity
Studies indicate that if pay is tied to performance, the employee produces a higher quality and quantity of work
The key to making compensation systems more effective is to be sure that they are directly connected to expected behaviors
01/2005 Thomas H. Jäkel 138
Compensation DecisionsCompensation Decisions
Pay-Level DecisionExamines pay relative to employees working on similar jobs in other organizationsObjective is to keep the organization competitive in the labor marketPay survey is the major tool used in this decision
Pay-Structure DecisionExamines pay relative to employees working on different jobs within the organizationInvolves setting a value on each job within the organization relative to all other jobsJob evaluation is the approach used
Individual Pay DeterminationExamines pay relative to employees working on the same job within the organization
01/2005 Thomas H. Jäkel 139
PayPay--Level StrategiesLevel Strategies
High-Pay Strategy
Low-Pay Strategy
Comparable-Pay Strategy
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Factors Affecting the Choice of Pay StrategyFactors Affecting the Choice of Pay Strategy
The motivation and attitudes held by managementThe ethical and moral attitude of managementThe degree to which an organization can attract and retain personnelThe organization’s ability to pay
01/2005 Thomas H. Jäkel 141
SummarySummary
The objective of the compensation function is to create a system of rewards that is equitable to the employer and employee alikeCompensation should be adequate, equitable, cost-effective, secure, incentive-providing, and acceptable to the employeeThe pay-structure decision involves comparing jobs within the organization to determine their relative worthDetermining the worth of a job is difficult because it involves measurement and subjective decisionsUsing systematic job evaluation procedures is one way to determine net worth
01/2005 Thomas H. Jäkel 142
Compensation: Methods and PoliciesCompensation: Methods Compensation: Methods and Policiesand Policies
chapterchapter
11
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Compensation SystemCompensation System
A Compensation system should
be:(* focus of this chapter)
AdequateEquitable
Balanced*
Cost-effective*
Secure*
Incentive-providing
Acceptable to the employee*
01/2005 Thomas H. Jäkel 144
NoteNote
To the individual
employee, the most
important compensation
decision is how much he
or she will earn.
01/2005 Thomas H. Jäkel 145
Determination of Individual PayDetermination of Individual Pay
Three questions need to be addressed:How should one employee be paid relative to another when they both hold the same job in the organization?Should we pay all employees doing the same work at the same level the same?If not, on what basis should we make the distinction?
01/2005 Thomas H. Jäkel 146
Pay differentials are based on:Pay differentials are based on:
Individual differences in experience, skills, and performance
Expectations that seniority, higher performance (or both) deserve higher pay
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Reasons for pay differentialsReasons for pay differentials
Pay differentials allow firms to recognize that different employees performing the same job make substantially different contributions to meeting organizational goalsDifferentials allow employers to communicate a changed emphasis on important job roles, skills, knowledge, etc.Differentials provide organizations with an important tool for emphasizing norms of enterprise without having employees change jobs (i.e., promotion)Pay differentials allow firms to recognize market changes between jobs in the same grade without requiring a major overhaul of the whole compensation systemWithout differentials,
the pay system violates the internal equity norms of most employees,reducing satisfaction with pay, andmaking attraction and retention of employees more difficult
01/2005 Thomas H. Jäkel 148
Methods of PaymentMethods of Payment
Flat Rates
Payment for Time Worked
Variable Pay: Incentive Compensation
01/2005 Thomas H. Jäkel 149
Payment for Time WorkedPayment for Time Worked
General, across-the-board increase for all employeesMerit increases paid to some employees
based on some indicator of job performanceCost-of-living adjustment (COLA)
based on the consumer price index (CPI)Seniority
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Variable PayVariable Pay
Percentage of an employee’s paycheck is put at riskIf business goals are not met, the pay rate will not rise above the lower base salaryAnnual raises are not guaranteedHelps manage labor costsDoes not guarantee equitable treatment of employees
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Support bymanagement
Acceptance byemployees
Supportiveorganizational
cultureTiming
Variable Pay: Key Design FactorsVariable Pay: Key Design Factors
01/2005 Thomas H. Jäkel 152
Types of Variable PayTypes of Variable Pay
Individual Incentives
Group Incentives
Organization Incentives
01/2005 Thomas H. Jäkel 153
Individual Variable PayIndividual Variable Pay
Merit incentivesEmployees fail to make the connection between pay and performanceThe secrecy of the reward is perceived by other employees as inequityThe size of the merit award has little effect on performance
Individual incentivesPieceworkproduction bonusesCommissions
Possible only in situations where performance can be specified in terms of output
e.g., sales dollars generatede.g., number of items completed
Employees must work independently of each other so that individual incentives can be applied equitably
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Effective Individual Incentive PlansEffective Individual Incentive Plans
The task is likedThe task is not boringThe supervisor reinforces and supports the systemThe plan is acceptable to employees and managersThe incentive is financially sufficient to induce increased outputQuality of work is not especially importantMost delays in work are under the employees’ control
01/2005 Thomas H. Jäkel 155
Reasons to Use Team IncentivesReasons to Use Team Incentives
When it is difficult to measure individual outputWhen cooperation is needed to complete a task or projectWhen management feels this is a more appropriate measure on which to base incentives
01/2005 Thomas H. Jäkel 156
OrganizationOrganization--wide Incentiveswide Incentives
Usually based on one of two performance concepts:A sharing of profits generated by all employees altogetherA sharing of money saved as a result of employees’efforts to reduce costs
01/2005 Thomas H. Jäkel 157
Approaches to OrganizationApproaches to Organization--wide Incentiveswide Incentives
SuggestionSystems
Gainsharing
Profit Sharing Ownership
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Suggestion Systems: Essential ElementsSuggestion Systems: Essential Elements
Management commitmentClear goalsDesignated administratorStructured award systemRegular publicityImmediate response to each suggestion
01/2005 Thomas H. Jäkel 159
Gainsharing PlansGainsharing Plans• Employees earn bonuses tied to unit-wide performance as measured by a
predetermined, gainsharing formula
• Commonly used gainsharing plans:• Lincoln Electric Plan• Scanlon Plan• Rucker Plan• ImproShare
• Key Elements in Designing a Gainsharing Plan• Strength of reinforcement• Productivity standards• Sharing the gains• Scope of the formula• Perceived fairness of the formula• Production variability
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Newer Approaches to GainsharingNewer Approaches to Gainsharing
Business Plan Gainsharing
Winsharing
Spot Gainsharing
01/2005 Thomas H. Jäkel 161
Typical Profit Sharing PlansTypical Profit Sharing Plans
Cash or current distribution plans provide full payment to participants soon after profits have been determinedDeferred plans credit a portion of current profits to employees’ accounts with cash payments made at the time of retirement, disability, severance, or deathA combination of both incorporates aspects of current and deferred options
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OwnershipOwnership
Employee stock ownership plan (ESOP) – employees receive stock in the companyESOPs are tax qualified
i.e., in return for meeting certain rules designed to protect the interests of plan participants, ESOP sponsors receive various tax benefits
ESOPs are defined contribution plansthe employers makes yearly contributions that
accumulate to produce a benefit that is not defined in advance
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PeoplePeople--Based PayBased Pay
Skill-BasedPay
Knowledge-Based Pay
Credential-Based Pay
Feedback Pay
01/2005 Thomas H. Jäkel 164
Executive PayExecutive Pay
More likely to be based on More likely to be based on comparative performancecomparative performance::Compensation committees link CEO’s pay to returns to shareholdersVariable performance-based pay is emphasized over guaranteesCEOs are encouraged to invest in company stockPerformance yardsticks are linked to actual key productivity indices, to the competition, or to bothCEOs are held responsible for the cost of capital
01/2005 Thomas H. Jäkel 165
Issues in Compensation AdministrationIssues in Compensation Administration
Pay Secrecy or Openness
Pay Security
Pay Compression
01/2005 Thomas H. Jäkel 166
GuaranteedAnnual Wage
(GAW)
SupplementaryUnemploymentBenefits (SUB)
Cost of LivingAdjustments
(COLAS)Severance Pay
Pay Security PlansPay Security Plans
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Solutions to Pay CompressionSolutions to Pay Compression
Reexamining how many entry-level people are neededReassessing recruitment itselfFocusing on the job evaluation process, emphasizing performance instead of salary-grade assignmentBasing all salaries on longevityGiving first-line supervisors and other managers the authority to recommend equity adjustments for incumbents who have been unfairly victimized by pay compressionLimiting the hiring of new employees seeking excessive salaries
01/2005 Thomas H. Jäkel 168
SummarySummary
There is a growing realization that traditional pay systems do not effectively link pay to performanceThe trend is toward a total compensation approach made up of base pay, variable pay, and benefitsFlexibility is an essential ingredient in any compensation plan and can be built using a variable pay approach
01/2005 Thomas H. Jäkel 169
Employee Benefits and ServicesEmployee Benefits and Employee Benefits and ServicesServices
chapterchapter
12
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Indirect Financial Compensation Indirect Financial Compensation -- BenefitsBenefits
All employer-provided rewards and services (other than wages and salaries) arising from:
legally required social insurance paymentsprivate insurance and retirement planspayment for time not workedextra cash payments other than bonuses based on performanceemployee services
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BackgroundBackground
Most benefits and services are available to workers as long as they are employed by an organization regardless of seniority or performanceDecisions about indirect compensation are more complex than those concerned with wages and salariesEmployers face rising benefits costs resulting from:
increased legislationinsurers’ insolvencycost of advanced medical technologiesaging workforcenew immigrationmore women in the workforceglobal competition
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Changes in Benefits ProgramsChanges in Benefits Programs
ThenNuclear families of working male with female and 2.3 children at homeEmployment for large part of careerWhite male-dominated workforceCradle-to-grave expectationsPaternalistic employerEntitlement perception of benefitsLow cost of benefits
Protection for illnessSingle set of benefits
NowDouble-income families with and with-out children, and single-head familiesMultiple career industry, & job movesMulticultural workforcePortability issuesShared responsibilityBenefits as part of total compensationBenefits costs escalating faster than CPI and employer’s ability to payPromotion of wellnessCafeteria and customized benefits programs
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The Role of ManagersThe Role of Managers
Benefits & Services Function
Operating Manager (OM) HR Manager (HRM)
Benefits & services budget Preliminary budget approved or adjusted by top management
Preliminary budget developed by HRM
Voluntary benefits & services Programs approved by OM (top management)
Programs recommended by HRM
Communication of benefits & services
OM cooperates with HRM Primary duty of HRM
Evaluation of benefits & services
Done by HRM
Administration of benefits & services programs
Done by HRM
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Benefits and Services ProgramsBenefits and Services Programs
Mandated Benefits
Voluntary Benefits
Income in Retirement
Employee Services
Flexible Benefits
01/2005 Thomas H. Jäkel 175
Mandated Benefits ProgramsMandated Benefits Programs
Unemployment Insurance
Social Security
Workers’Compensation
01/2005 Thomas H. Jäkel 176
Unemployment InsuranceUnemployment Insurance
Unemployment tax paid by employer
Unemployment tax rates, eligibility requirements, weekly benefits, and duration of regular benefits vary from state to state
Employee receives compensation for a limited time –typically a maximum of 26 weeks
01/2005 Thomas H. Jäkel 177
Social SecuritySocial Security
Social SecurityRetirement incomeDisability benefitsDeath benefitsSurvivor’s benefits6.2% of eligible earnings up to
$84,900 (2002)$87,000 (2003)
Employee and employer funded
MedicareHospital insurance (Medicare, Part A)Medical Insurance (Medicare, Part B)1.45% of eligible earnings (unlimited)Employee and employer funded
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WorkersWorkers’’ CompensationCompensation
Based on the principle of liability without faultEmployer absolutely liable for providing benefits to employees that result from occupational disabilities or injuries regardless of faultEmployers assume costs of occupational injuries and accidentsEmployers pay premium to insurance company or state fund
experience-rated (5-10 year period)Disability must be work relatedBenefits include:
medical caredisability incomeRehabilitationdeath benefits
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Voluntary Benefits ProgramsVoluntary Benefits Programs
Insurance Protection
Retirement Plans
Compensation for Time Not Worked
01/2005 Thomas H. Jäkel 180
SickLeave
FamilyLeave
Maternityand Parental
Leave
PaidVacations
PersonalTime Off
PaidHolidays
Compensation for Time Not WorkedCompensation for Time Not Worked
01/2005 Thomas H. Jäkel 181
EmployerEmployer--Purchased InsurancePurchased Insurance
Health Insurance
Life Insurance
Disability Income Replacement
01/2005 Thomas H. Jäkel 182
Health InsuranceHealth Insurance
Traditional membership programsPay for both physician and hospital expenses as these costs are incurredApproach is not preventive
Health maintenance organizations (HMO)Outpatient and hospital coverage offered for a fixed monthly feePrepayment for comprehensive health care that promotes preventive care
Preferred provider organizations (PPO)Health care plan based on agreements between doctors, hospitals,and other related medical service facilities with an employer or an insurance companyServices provided for a fixed feeIncentives to use selected providersEmphasis on cost control
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SimplifiedEmployeePension
IRAs
401 (k)Plans
PrivatePensions
RetirementIncome from
Savings &Work
IndividualRetirementAccounts
(IRAs)
Income in Retirement ProgramsIncome in Retirement Programs
01/2005 Thomas H. Jäkel 184
Pension BenefitsPension Benefits
Defined benefit pension planSpecifies the benefit employees will receive at retirement
Defined contribution pension planSpecifies the employer’s contributionCannot predetermine the employee’s actual pension benefit
01/2005 Thomas H. Jäkel 185
Employee ServicesEmployee Services
Employee Services
Stock Ownership
PlansEducation Programs
Financial Services
Childcare
Eldercare
Pre-retirement Programs
Social and Recreational
Programs
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Flexible Benefits PlansFlexible Benefits Plans
Allow employees to choose between two or more types of benefitsCommon choices include:
health carelife insurancedisability insuranceoption of receiving cash to spend on coverage in the open market
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Reimbursement AccountsReimbursement Accounts
Also known as flexible spending accountsProvide funds from which employees pay for expenses not covered by the regular benefits packageUsually pretax deductionsFunds can be allocated for:
unreimbursed health careChildcarecare for elderly or disabled relatives
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Managing an Effective Benefits ProgramManaging an Effective Benefits Program
Step 1: Set Objectives and Strategy for BenefitsPacesetter strategyComparable benefits strategyMinimum benefits strategy
Step 2: Involve Participants and UnionsStep 3: Communicate BenefitsStep 4: Monitor Costs Closely
01/2005 Thomas H. Jäkel 189
SummarySummary
Top managers must consider the following when making decisions about benefits:
Mandated programs must be fundedThere is little evidence that benefits and services really motivate performanceBenefits do not necessarily increase satisfactionMost employees view benefits and services as entitlementsUnions, competitors, and industry trends continue to pressure employers to provide or increase voluntary benefitsCosts of benefits and services continue to escalate dramatically
To avoid administrative nightmares, employers should concentrateon fewer benefits plans
If possible, implement those preferred by most employees
01/2005 Thomas H. Jäkel 190
Training and DevelopmentTraining and DevelopmentTraining and Development
chapterchapter
13
01/2005 Thomas H. Jäkel 191
Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
01/2005 Thomas H. Jäkel 192
Nature of Corporate TrainingNature of Corporate Training
Training is often seen as an employee benefit, which is not expected to provide a tangible return. Isn’t training just part of enlightened management, intrinsically good unquestionably valuable in unmeasurable ways?
No.
Training must be treated like any other investment.
If the return on a given training investment is not easily quantified, how can managers describe the specific benefits to the organization of that training effort?How can the investment in training to be assessed before the investment is made?If top managers are committed to spending a certain percentage of revenue on training, how can they be sure that they are investing in the right training?
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Common ViewCommon View
In a prevailing view, people exist in a vacuum. If managers want to establish or improve a certain performance output, all they need to do is arrange for the proper training input.
Skills/Knowledge Performance
Training is likely to be prescribed when training is not needed.
01/2005 Thomas H. Jäkel 194
The Systems ViewThe Systems View
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Process1
Process2
Process3
Process1
Process2
Process3
The OrganizationLevel
The ProcessLevel
The Job/Performer Level
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Reacting to Training RequestsReacting to Training Requests
Identify, at the Organizational Level, the critical business issue – the actual performance problem or opportunity of concern.Identify, at the Process Level, the business process that has the greatest impact on the critical business issue.Use a Process Map to document the adjudication process and to identify any gaps between desired and actual performance of each process step.Identify the jobs that have an impact on the performance of the process steps in which there are gaps.Develop a list of desired outputs. Identify which of the desired outputs are not being produced.Identify the causes of any subpar output. Possible causes include missing or inadequate Performance Specifications, Task Interference, missing or unaligned Consequences, missing or inadequate Feedback, lack of Skills or Knowledge, and lack of Individual Capacity.
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Proactive Training PlanningProactive Training Planning
Identify major clients (by business unit or department, with a senior manager as the contact in each client organization).Develop an HRM plan with the client contact. Begin by identifying the client organization’s anticipated operating needs for the next 18 months. These needs should be based on the business unit’s strategy or the departments contribution to the strategy. On the basis of these needs, identify the training that will be required to meet them.Consolidate all of the business-unit HRM plans into a plan and budget for the HRM function.Review progress toward the plan with the client every 6 months.Review progress at the end of the year and update the plan for the next year.
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HRM as Performance DepartmentHRM as Performance Department
HRM can transform itself from a training operation to the organization’s performance department.
Understand that their mission is to improve performance, not to provide skills and knowledge.Only conduct training and development that are linked to organization performance needs.Only conduct training and development that are supported by the environment in which the trainees work.Evaluate training and development according to its contributions to organization performance needs.Conduct diagnoses that go beyond training.Recommend solutions to both training and development and non-training and development needs.Understand the business at all Three Levels of Performance and the influence of all Nine Performance VariablesUnderstand that the department is a business and must be run as a business.
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Different TypesDifferent Types
Orientation – orients, directs, and guides employees to understand work, firm, colleagues, and mission (socialization)Training – helps employees do their current workDevelopment – prepares individuals for the future
Focuses on learning and personal development
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To reduceanxiety
To reduceturnover
To developrealistic
expectationsTo save time
Goals of OrientationGoals of Orientation
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How Orientation WorksHow Orientation Works
Orientation should begin with the most relevant and immediate kinds of informationThe most significant part of orientation is the human sideNew employees should be “sponsored” or directed in the immediate environment by an experienced worker or supervisorNew employees should be gradually introduced to the people with whom they will workNew employees should be allowed sufficient time to get their feet on the ground before job demands on them are increased
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TrainingTraining
The systematic process of altering the behavior of employees in a direction that will achieve organization goalsTraining is related to present job skills and abilitiesTraining has a current orientationHelps employees master specific skills and abilities needed to be successful
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Goals of TrainingGoals of Training
Training validityDid the trainees learn skills or acquire knowledge or abilities during the training?
Transfer validityDid the knowledge, skills, and abilities learned in training lead to improved performance on the job?
Intraorganizational validityIs the job performance of a new group of trainees in the same organization that developed the program comparable to the job performance of the original training groups?
Interorganizational validityCan a training program that has been validated in one organization be used successfully in another firm?
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Learning Theory and TrainingLearning Theory and Training
The trainee must be motivated to learnThe trainee must be able to learnThe learning must be reinforcedThe training must provide for practice of the materialThe material presented must be meaningfulThe material must be communicated effectivelyThe material taught must transfer to the job
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Learning OrganizationsLearning Organizations
Organizations that are proficient in:A systematic approach to problem solvingExperimentation with new approachesLearning from their own experience and historyLearning from the experiences and best practices of othersTransferring knowledge quickly and efficiently throughout the organization
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Managing the Training ProgramManaging the Training Program
Determining needs and objectivesChoosing trainers and traineesSelecting training content and methods to be used Developing evaluation criteriaEvaluating the training
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Needs AssessmentNeeds Assessment
Organizational Analysis
Person Analysis
Task Analysis
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EmployeesEmployees’’ Needs for TrainingNeeds for Training
Observe employeesListen to employeesAsk supervisors about employees’ needsExamine the problems employees have
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Steps to a Performance AnalysisSteps to a Performance Analysis
Behavioral discrepancyCost-value analysisIs it a “cant do” or “won’t do” situation?Set standardsRemove obstaclesPracticeTrainingChange the jobTransfer or terminateCreate a motivational climate
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Instructional MethodsInstructional Methods
Training and Development Instructional
Methods
On-the-Job Training Case Method
Behavior Modeling
In-Basket Technique
Management Games
Role Playing
Outdoor-Oriented Programs
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OnOn--thethe--Job Training for ManagersJob Training for Managers
Coaching and counseling
Transitory anticipatory experiences
Transfers and rotation
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OffOff--thethe--Job TrainingJob Training
Lecture-discussion approachComputer-assisted instruction (CAI)
InternetIntranetsMultimedia-based training (MBT)Virtual reality (VR)Distance learning
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Diagnostic Steps in Development ProgramsDiagnostic Steps in Development Programs
Organizational AnalysisOrganizational Analysis
Work AnalysisWork Analysis
Human Resource AnalysisHuman Resource Analysis
1. Determine short- and long-term goals of the organization
2. Examine work requirements, specifications, and changes in work
3. Determine behaviors needed to perform work and performance standards
4. Develop behavior objectives to be accomplished through development programs
Objectives to be used in evaluation of success of program
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Development: Individual TechniquesDevelopment: Individual Techniques
Goal Setting Behavior Modification
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Goal Setting: Key StepsGoal Setting: Key Steps
DiagnosisPreparing the employees for goal setting by increased interpersonal interaction, communication, training, and action plansEmphasizing the attributes of goals that should be understood by a manager and subordinatesConducting immediate reviews to make necessary adjustments in established goalsPerforming a final review to check the goals set, modified, and accomplished
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Criticisms of Goal SettingCriticisms of Goal Setting
Goal setting is complex and difficult to sustainGoal setting works well for simple jobs but not for complete jobsGoal setting encourages game playingGoal setting is used as another check on employeesAccomplishment of goals can become an obsession
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Applied Behavior ModificationApplied Behavior Modification
Managers must identify and define the specific behaviorCan it be seen?Can it be measured?
Managers must measure or count the occurrences of the pinpointedbehaviorManagers conduct the ABC analysis
AntecedentBehaviorConsequence
The action plan and strategiesPositive reinforcementNegative reinforcementExtinctionPunishment
Evaluation of critical behaviorComparing baseline versus after action behaviorsProviding feedback to make changes
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Questions for Performance AnalysisQuestions for Performance Analysis
AntecedentDoes the employee know what is expected?Are the standards clear?Have they been communicated?Are they realistic?
BehaviorCan the behavior be performed?Could the employee do it if his or her life depended on it?Does something prevent its occurrence?
ConsequenceAre the consequences weighted in favor of performance?Are improvements being reinforced?Do we note improvement even though the improvement may still leave the employee below company standards?Is reinforcement specific?
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A Group Technique A Group Technique –– Team BuildingTeam Building
A development process that helps or prepares organization members to work more efficiently or effectively in groupsDesigned to enhance individual team members’
problem-solving skillsCommunicationsensitivity to othersparticipation
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Total Quality Management (TQM)Total Quality Management (TQM)
TQM – a philosophy, a process, and a set of principles that provide an organization with what is needed to continuously improve its effectivenessEveryone in the firm developing and fine-tuning processes that are:
customer-orientedFlexibleResponsive
To achieve change and to convert to TQM, there must be changes in:
AttitudesCommunicationemployee involvementcommitment
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Criteria for Training EvaluationCriteria for Training Evaluation
Participants’ reactionWhether participants like or dislike the training or developmentprogram
LearningExtent to which participants have assimilated the knowledge offered and skills practiced in the training or development programDoes the participant score higher on tests after the training ordevelopment than before?
BehaviorExternal measure of changes or lack of changes in job behavior
ResultsEffect of the program on organizational dimensions such as:
employee turnoverProductivityvolume of salesquality
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An Evaluation Matrix: Issues to ConsiderAn Evaluation Matrix: Issues to Consider
Relevant Issues to Evaluate
What to Measure What to Examine for Answers
How to Collect Data
Are the participants learning, changing attitudes, or improving skills?
Participants’ attitudes or skills before and after (even during) training or development sessions
CommentsMethod of participationCo-workersSuperiors
InterviewsQuestionnairesRecordsObservations
Are the training or development materials used on the job?
Participants’ on-the-job performance, behavior, and style
Subordinates’performance, attitudes, and style
RecordsInterviewsQuestionnairesCritical incidentsObservations
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An Evaluation Matrix: Issues to ConsiderAn Evaluation Matrix: Issues to Consider
Relevant Issues to Evaluate
What to Measure What to Examine for Answers
How to Collect Data
What are the costs of training and develop-ment programs and techniques?
Fixed and variable costs of conducting training or development
Costs of trainersParticipants’ timeTravel expensesConsultants’ feesTraining aidsRent and utilities
Budget records
How long does the training or develop-ment have an effect on participants?
Participants’ on-the-job performance, behavior, and style over an extended period of time
Subordinates’performance, attitudes, and style
RecordsInterviewsQuestionnairesCritical incidentsObservations
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SummarySummary
Formal training and development have been shown to be more effective than informal or no training and development
For most training and development programs the results tend to be assumed rather than evaluated
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Career Planning and DevelopmentCareer Planning and Career Planning and DevelopmentDevelopment
chapterchapter
14
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The Concept of CareerThe Concept of Career
A career is the pattern of work-related experiences and activities over the span of the person’s work life, e.g.,
job positionsjob dutiesDecisionssubjective interpretations about work-related events
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Diagnostic Model for HRMDiagnostic Model for HRM
Diagnose Prescribe Implement Evaluate
Diagnose Prescribe Implement Evaluate
Human Resource ProcessesHuman Resource Processes
Focus of each process is on people and resultsFocus of each process is on people and results
Acquiring Human Resources
Rewarding Human Resources
Developing Human Resources
Maintaining and Protecting Human
Resources
External External Environmental Environmental
InfluencesInfluences
Internal Internal Environmental Environmental
InfluencesInfluences
Sociallyresponsible andethical practices
Sociallyresponsible andethical practices
Competitive, highquality products
Competitive, highquality products
Competitive, highquality services
Competitive, highquality services
Desirable End Results
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Career Development SystemCareer Development System
ISSUE:
Are employees developing themselves in a way that links personal effectiveness and satisfaction with the achievement of the organization’s strategic objectives?
INDIVIDUAL NEEDS
How do I find career opportunities within the organization that will do the following?
• Use my strengths
• Address my developmental needs
• Provide challenges
• Match my interests
• Match my values
• Match my personal style
ORGANIZATIONAL NEEDS
What are the organization’s major strategic issues over the next two or three years?
• Critical needs and challenges to be faced?
• Critical skills, knowledge, and experience needed to meet these challenges?
• Staffing levels required?
• Does the organization have the strength necessary to meet the critical challenges?
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Career StagesCareer StagesStage I: Apprenticeship
Important needs – safety, security, physiologicalExpected to show competence in learning and following directionsMust be able to accept the psychological state of dependence
Stage II: AdvancementImportant needs – achievement, esteem, autonomyDemonstrate competence in a specific technical areaExpected to be an independent contributor of ideas in the chosen area
Stage III: MaintenanceImportant needs – esteem, self-actualizationExpected to become the mentors of those in Stage ICentral activities are training and interaction with othersAssume responsibility for the work of others
Stage IV: Strategic ThinkingImportant needs – self-actualizationInvolves shaping the direction of the organization itselfExpected to play the roles of manager, entrepreneur, and idea generatorAttention directed to long-range strategic planning
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Social Enterprising Conventional
Investigative Artistic
Realistic
Career Choice and PersonalityCareer Choice and Personality
HollandHolland’’s s Personality Personality TypesTypes
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Career Development: A CommitmentCareer Development: A Commitment
Career development programs are most valuable when they are:
offered regularlyopen to all employeesmodified when evaluation indicates that change is necessary
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Career DevelopmentCareer Development
Career Development
Programs
Career Counseling Career Pathing
Training
Career Information
Systems
Management or Supervisory
Development
Human Resources
Special Groups
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Causes of Early Career DifficultiesCauses of Early Career Difficulties
Initial Job Challenge
Initial Job Satisfaction
Initial Job Performance Evaluation
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Realistic jobpreviews
Challenginginitial
assignments
Enrichedinitial
assignments
Demandingbosses
How to Counteract Early Career ProblemsHow to Counteract Early Career Problems
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Causes of the Midcareer PlateauCauses of the Midcareer Plateau
Fewer jobs at the top of organizationsManager may have the abilityHowever, no opening exists
Openings may existManager may lack the ability or skillsManager may lack the desire to fill the opening
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How to Counteract Midcareer ProblemsHow to Counteract Midcareer Problems
Midcareer counseling
Midcareer alternativesLateral transfersDownward transfersFailback positions
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Minimize Retirement Adjustment ProblemsMinimize Retirement Adjustment Problems
When do employees plan to retire?Who is attracted by early retirement?What do employees plan to do during retirement?
Can the organization help them prepare for these activities?
Do retirees plan a second career?Can the organization assist in this preparation?
Which retirees can still be consulted by the organization to help new employees?
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Career Planning and PathingCareer Planning and Pathing
Career planning – involves matching an individual’s career aspirations with the opportunities available in an organization
Career pathing – the sequencing of the specific jobs associated with the opportunities available in the organization
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A Career Planning and Pathing ProcessA Career Planning and Pathing Process
Individual needs and aspirations
Personal counseling and assessment
Individual development efforts
Matching Matching Placement on career path
Organizational needs and opportunities
Personnel planning and career information
Formal training and development programs
Feedback
Feedback
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Informalcounseling
Formalcounseling
Tuition aidprograms
Job posting
Career Planning ApproachesCareer Planning Approaches
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Job Posting: Minimum ConditionsJob Posting: Minimum Conditions
It should include promotions and transfers as well as permanent vacanciesAvailable jobs should be posted at least three to six weeks prior to external recruitingEligibility rules should be explicit and straightforwardStandards for selection and bidding instructions should be stated clearlyVacationing employees should be given the opportunity to apply ahead of timeEmployees who apply but are rejected should be notified of the reason in writing
A record of the reason should be placed in their personnel files
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Career PathingCareer Pathing
Important in workforce planningHas the potential for closing the gap between the needs of the individual and the needs of the organizationTraditional career paths have emphasized upward mobility in a single occupation or functional area
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Realistic Career PathsRealistic Career Paths
Include lateral and downward possibilities, as well asupward possibilitiesTentative and responsive to changes in organizational needsFlexible enough to take into account the qualities of individualsJobs along the paths specified in terms of acquirableskills, knowledge, and other specific attributes
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Problems and IssuesProblems and Issues
Integrating career development and workforce planningManaging dual careersCareer planning and equal employment opportunityDownsizing and job loss
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Job Layoff and Job LossJob Layoff and Job Loss
Job layoff exists when three conditions occur:There is no work available at the time and the employee is sent homeManagement expects the no-work situation to be temporaryManagement intends to recall the employee
Job loss means that the employee has permanently lost his or her job
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Managerial Responses to Layoffs and Job LossManagerial Responses to Layoffs and Job Loss
Layoff Criteria
Outplacement Services
Severance Pay
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SummarySummary
“Work, if the longing of the unemployed is any indication, remains a fundamental need – even in the crushing form it has increasingly assumed in the modern world. It provides not simply a livelihood, but an essential passage into the human community. It makes us less alone.”
Harry Maurer
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OrganizationalDevelopmentOrganizationalOrganizationalDevelopmentDevelopment
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DefinitionDefinition
Organization Development (OD) is the systematic application of behavioral science knowledge at various levels, such as group, inter-group, organization, etc., to bring about planned change. Its objectives is a higher quality of work-life, productivity, adaptability, and effectiveness. It accomplishes this by changing attitudes, behaviors, values, strategies, procedures, and structures so that the organization can adapt to competitive actions, technological advances, and the fast pace of change within the environment.
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The Three Levels of PerformanceThe Three Levels of PerformanceShareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Shareholders
Market
Function A Function B Function C
Process1
Process2
Process3
Process1
Process2
Process3
The OrganizationLevel
The ProcessLevel
The Job/Performer Level
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Organizational LevelOrganizational Level
Relationship with the Market
Major Functions
Corporate Strategy
Corporate Goals
Organization Structure
Deployment of Resources
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Process LevelProcess Level
Organizational level plus
Work Flow
Cross-relations
How the work is done
Business view
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Job/Performer LevelJob/Performer Level
Organization level plus
Process level plus
Skills, Competence
Hiring practice
Promotions, Rewards
Job Descriptions
Responsibilities
Standards, Feedbacks
Motivation
Satisfaction
Training
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The Nine Performance VariablesThe Nine Performance Variables
OrganizationGoals
JobGoals
ProcessGoals
OrganizationDesign
JobDesign
ProcessDesign
OrganizationManagement
JobManagement
ProcessManagement
Goals Design Management
OrganizationLevel
ProcessLevel
Job/PerformerLevelTh
e Th
ree
Leve
ls o
f P
erfo
rman
ce
The Three Performance Needs
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Performance NeedsPerformance Needs
Specific standards that reflect customers’
expectations for product and service quality,
quantity, timeliness and cost.
Necessary components, configured in a way
that enables the goals to be efficiently met.
Management practices that ensure that goals
are current and are being achieved.
Goals
Design
Management
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Organizational GoalsOrganizational Goals
Organizational goals are part of the business strategy
and must comprise the following:
The organizations competitive advantage
New Services
New Markets
Emphasis on products, services, markets
Investment on resources and expected returns
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Organization DesignOrganization Design
Organization Structure
Responsibilities, Functional Components
Relationships, Input/Output Connections
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Organization ManagementOrganization Management
Corporate Goal Management
Performance Management
Resource Management
Interface Management
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Process GoalsProcess Goals
External process goals must derive from corporate
goals
Internal process goals must be driven by the needs of
internal customers
Functional goals must be integrated in key processes
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Process DesignProcess Design
Logical process structure
Streamlines paths
Can processes meet the goals?
Are all necessary processes in place?
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Process ManagementProcess Management
Goal Management
Performance Management
Resource Management
Interface Management
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Job GoalsJob Goals
Does the job contribute to key processes?
Are outputs and goals in line with requirements of key processes?
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Job DesignJob Design
Optimum contribution to job goals
Boundaries and responsibilities
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Job ManagementJob Management
Performance Specification
Task Support
Consequences
Feedback
Skills and Knowledge
Individual Capacity
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20 Topics (1)20 Topics (1)
Delegation of Responsibility
Conflict Management
Learning Capabilities
New Leadership Paradigm
Delaying and Team Orientation
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20 Topics (2)20 Topics (2)
Creativity
Just-in-Time Information
Reward and Evaluation
Management Development
Constraints and Policies
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20 Topics (3)20 Topics (3)
Brain Drain
Training and Employee Orientation
Value Lens
Process Awareness
Speed vs Accuracy
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20 Topics (4)20 Topics (4)
External Lens
Corporate Image
Solution Gap
Knowledge Management
Communications