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Human Resource Management
 

Human Resource Management

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Human Resource Management Human Resource Management Presentation Transcript

  • Human Resource Management
  • Fundamentals of Human Resource Management
  • Management Essentials
    • Management involves setting goals and allocating scarce resources to achieve them.
    • Management is the process of efficiently achieving the objectives of the organization with and through people.
  • Management Essentials
    • Primary Functions of Management
      • Planning – establishing goals
      • Organizing – determining what activities need to be done
      • Leading – assuring the right people are on the job and motivated
      • Controlling – monitoring activities to be sure goals are met
  • Why is HRM Important to an Organization?
    • The role of human resource managers has changed. HRM jobs today require a new level of sophistication.
      • Employment legislation has placed new requirements on employers.
      • Jobs have become more technical and skilled.
      • Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting.
      • Global competition has increased demands for productivity.
  • Why is HRM Important to an Organization?
    • The Strategic Nature – HRM must be
      • a strategic business partner and represent employees.
      • forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage.
      • concerned with the total cost of its function and for determining value added to the organization.
  • Why is HRM Important to an Organization?
    • HRM is the part of the organization concerned with the “people” dimension.
    • HRM is both a staff, or support function that assists line employees, and a function of every manager’s job.
    • HRM Certification
      • Colleges and universities offer HR programs.
  • Why is HRM Important to an Organization?
    • Four basic functions:
    • Staffing
    • Training and Development
    • Motivation
    • Maintenance
  • How External Influences Affect HRM
    • Strategic Environment
    • Governmental Legislation
    • Labor Unions
    • Management Thought
  • How External Influences Affect HRM
    • HRM Strategic Environment includes:
      • Globalization
      • Technology
      • Work force diversity
      • Changing skill requirements
      • Continuous improvement
      • Work process engineering
      • Decentralized work sites
      • Teams
      • Employee involvement
      • Ethics
  • How External Influences Affect HRM
    • Governmental Legislation
      • Laws supporting employer and employee actions
    • Labor Unions
      • Act on behalf of their members by negotiating contracts with management
      • Exist to assist workers
      • Constrain managers
      • Affect non unionized workforce
  • How External Influences Affect HRM
    • Management Thought
      • Management principles, such as those from scientific management or based on the Hawthorne studies influence the practice of HRM.
      • More recently, continuous improvement programs have had a significant influence on HRM activities.
  • Staffing Function Activities
    • Employment planning
      • ensures that staffing will contribute to the organization’s mission and strategy
    • Job analysis
      • determining the specific skills, knowledge and abilities needed to be successful in a particular job
      • defining the essential functions of the job
  • Staffing Function Activities
    • Recruitment
      • the process of attracting a pool of qualified applicants that is representative of all groups in the labor market
    • Selection
      • the process of assessing who will be successful on the job, and
      • the communication of information to assist job candidates in their decision to accept an offer
  • Goals of the Training and Development Function
    • Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities
    • Orientation and socialization help employees to adapt
    • Four phases of training and development
      • Employee training
      • Employee development
      • Organization development
      • Career development
  • The Motivation Function
    • Activities in HRM concerned with helping employees exert at high energy levels.
    • Implications are:
      • Individual
      • Managerial
      • Organizational
    • Function of two factors:
      • Ability
      • Willingness
    • Respect
  • The Motivation Function
    • Managing motivation includes:
      • Job design
      • Setting performance standards
      • Establishing effective compensation and benefits programs
      • Understanding motivational theories
  • The Motivation Function
    • Classic Motivation Theories
      • Hierarchy of Needs –Maslow
      • Theory X – Theory Y –McGregor
      • Motivation – Hygiene – Herzberg
      • Achievement, Affiliation, and Power Motives – McClelland
      • Equity Theory – Adams
      • Expectancy Theory - Vroom
  • How Important is the Maintenance Function?
    • Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization.
      • Health
      • Safety
      • Communications
      • Employee assistance programs
    • Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.
  • Translating HRM Functions into Practice
    • Four Functions:
      • Employment
      • Training and development
      • Compensation/benefits
      • Employee relations
  • HRM in an Entrepreneurial Enterprise
    • General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions.
    • Benefits include
      • freedom from many government regulations
      • an absence of bureaucracy
      • an opportunity to share in the success of the business
  • HRM in a Global Village
    • HRM functions are more complex when employees are located around the world.
    • Consideration must be given to such things as foreign language training, relocation and orientation processes, etc.
    • HRM also involves considering the needs of employees’ families when they are sent overseas.
  • HR and Corporate Ethics
    • HRM must:
      • Make sure employees know about corporate ethics policies
      • Train employees and supervisors on how to act ethically
  • Human Resource Planning and Job Analysis
  • Introduction
    • Human resource planning is a process by which an organization ensures that
      • it has the right number and kinds of people
      • at the right place
      • at the right time
      • capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.
  • Introduction
    • Linked to the organization’s overall strategy and planning to compete domestically and globally.
    • Overall plans and objectives must be translated into the number and types of workers needed.
    • Senior HRM staff need to lead top management in planning for HRM issues.
  • An Organizational Framework
  • Linking Organizational Strategy to Human Resource Planning
    • Ensures that people are available to meet the requirements set during strategic planning.
    • Assessing current human resources
      • A human resources inventory report summarizes information on current workers and their skills.
    • Human Resource Information Systems
      • HRIS are increasingly popular computerized databases that contain important information about employees.
  • Linking Organizational Strategy to Human Resource Planning
    • Assessing current human resources
      • Succession planning
        • includes the development of replacement charts
        • portray middle-to-upper level management positions that may become vacant in the near future
        • lists information about individuals who might qualify to fill the positions
  • Linking Organizational Strategy to Human Resource Planning
    • Determining the Demand for Labor
      • A human resource inventory can be developed to project year-by-year estimates of future HRM needs for every significant job level and type.
      • Forecasts must be made of the need for specific knowledge, skills and abilities.
  • Linking Organizational Strategy to Human Resource Planning
    • Predicting the Future Labor Supply
      • A unit’s supply of human resources comes from:
        • new hires
        • contingent workers
        • transfers-in
        • individuals returning from leaves
      • Predicting these can range from simple to complex.
  • Linking Organizational Strategy to Human Resource Planning
    • Predicting the Future Labor Supply
      • Decreases in internal supply come about through:
        • Retirements
        • Dismissals
        • Transfers-out
        • Lay-offs
        • Voluntary quits
        • Sabbaticals
        • Prolonged illnesses
        • Deaths
  • Linking Organizational Strategy to Human Resource Planning
    • Where Will We Find Workers
      • migration into a community
      • recent graduates
      • individuals returning from military service
      • increases in the number of unemployed and employed individuals seeking other opportunities, either part-time or full-time
    • The potential labor supply can be expanded by formal or on-the-job training.
  • Linking Organizational Strategy to Human Resource Planning
    • Matching Labor Demand and Supply
      • Employment planning compares forecasts for demand and supply of workers.
      • Special attention should be paid to current and future shortages and overstaffing.
      • Recruitment or downsizing may be used to reduce supply and balance demand.
      • Rightsizing involves linking staffing levels to organizational goals.
  • Linking Organizational Strategy to Human Resource Planning Employment Planning and the Strategic Planning Process
  • Job Analysis
    • Job Analysis is a systematic exploration of the activities within a job.
    • It defines and documents the duties, responsibilities and accountabilities of a job and the conditions under which a job is performed.
  • Job Analysis
    • Job Analysis Methods
      • Observation method – job analyst watches employees directly or reviews film of workers on the job.
      • Individual interview method – a team of job incumbents is selected and extensively interviewed.
      • Group interview method – a number of job incumbents are interviewed simultaneously.
  • Job Analysis
    • Job Analysis Methods
      • Structured questionnaire method – workers complete a specifically designed questionnaire.
      • Technical conference method – uses supervisors with an extensive knowledge of the job.
      • Diary method – job incumbents record their daily activities.
    • The best results are usually achieved with some combination of methods.
  • Job Analysis
    • Structured Job Analysis Techniques
      • Department of Labor’s Job Analysis Process:
        • Information from observations and interviews is used to classify jobs by their involvement with data, people and things.
        • Information on thousands of titles available on O*Net OnLine which is the Department of Labor’s replacement for the Dictionary of Occupational Titles.
  • Job Analysis
    • Position Analysis Questionnaire (PAQ)(developed at Purdue University)
      • Jobs are rated on 194 elements, grouped in six major divisions and 28 sections.
      • The elements represent requirements that are applicable to all types of jobs.
      • This type of quantitative questionnaire allows many different jobs to be compared with each other, however, it appears to be more applicable to higher-level professional jobs.
  • Job Analysis
    • Job Descriptions
      • Written statement of what jobholder does, how it is done, under what conditions and why.
      • Common format: title; duties; distinguishing characteristics; environmental conditions; authority and responsibilities.
      • Used to describe the job to applicants, to guide new employees, and to evaluate employees.
  • Job Analysis
    • Job Specifications
      • States minimum acceptable qualifications.
      • Used to select employees who have the essential qualifications.
  • Job Analysis
    • Job Evaluations
      • Specify relative value of each job in the organization.
      • Used to design equitable compensation program.
  • Job Analysis
    • The Multi-faceted Nature of Job Analysis
      • Almost all HRM activities are tied to job analysis.
      • Job analysis is the starting point for sound HRM.
  • Job Analysis
    • Job Analysis and the Changing World of Work
      • Globalization, quality initiatives, telecommuting, and teams require adjustments to the components of a job.
      • Today’s jobs often require not only technical skills but interpersonal skills and communication skills as well.
  • Recruitment and Selection By: Dr. Hadia Hamdy
  • Introduction
    • Recruiting
      • Once an organization identifies its human resource needs through employment planning, it can begin the process of recruiting potential candidates for actual or anticipated organizational vacancies.
  • Introduction
    • Recruiting brings together those with jobs to fill and those seeking jobs.
  • Recruiting Goals
    • To provide information that will attract a significant pool of qualified candidates and discourage unqualified ones from applying.
  • Recruiting Goals
    • Factors that affect recruiting efforts
      • Organizational size
      • Employment conditions in the area
      • Working conditions, salary and benefits offered
      • Organizational growth or decline
  • Recruiting Goals
    • Constraints on recruiting efforts include:
      • Organization image
      • Job attractiveness
      • Internal organizational policies
      • Recruiting costs
  • Recruiting: A Global Perspective
    • For some positions, the whole world is a relevant labor market.
    • Parent (Home) country nationals are recruited when an organization is searching for someone with extensive company experience to launch a very technical product in a country where it has never sold before.
  • Recruiting: A Global Perspective
    • Host-country nationals (HCNs) are targeted as recruits when companies want each foreign subsidiary to have its own distinct national identity.
    • HCN’s minimize potential problems with language, family adjustment and hostile political environments.
  • Recruiting Sources
    • Sources should match the position to be filled.
    • Sources :
      • Internal Searches
      • Employee Referrals/
      • Recommendations
      • External Searches
      • Alternatives
  • Recruiting Sources
    • The internal search
    • Organizations that promote from within identify current employees for job openings:
      • by having individuals bid for jobs
      • by using their HR management system
      • by utilizing employee referrals
  • Recruiting Sources
    • The internal search
    • Advantages of promoting from within include
      • morale building
      • encouragement of ambitious employees
      • availability of information on existing employee performance
      • cost-savings
      • internal candidates’ knowledge of the organization
  • Recruiting Sources
    • The internal search
    • Disadvantages include:
      • possible inferiority of internal candidates
      • infighting and morale problems
  • Recruiting Sources
    • Employee referrals/recommendations
    • Current employees can be asked to recommend recruits.
    • Advantages include:
      • the employee’s motivation to make a good recommendation
      • the availability of accurate job information for the recruit
      • Employee referrals tend to be more acceptable applicants, to be more likely to accept an offer and to have a higher survival rate.
  • Recruiting Sources
    • Employee referrals/recommendations
    • Disadvantages include:
      • the possibility of friendship being confused with job performance
  • Recruiting Sources
    • External searches
    • Advertisements : Must decide type and location of ad, depending on job; decide whether to focus on job ( job description ) or on applicant ( job specification ).
    • Two factors influence the response rate:
      • identification of the organization
      • labor market conditions
  • Recruiting Sources
    • External searches
    • Employment agencies :
      • Public or state employment services focus on helping unemployed individuals with lower skill levels to find jobs.
      • Private employment agencies provide more comprehensive services and are perceived to offer positions and applicants of a higher caliber.
  • Recruiting Sources
    • External searches
    • Schools, colleges, and universities:
      • May provide entry-level or experienced workers through their placement services.
      • May also help companies establish cooperative education assignments and internships.
  • Recruiting Sources
    • Recruitment alternatives
    • Temporary help services .
      • Temporary employees help organizations meet short-term fluctuations in HRM needs.
      • Older workers can also provide high quality temporary help.
    • Employee leasing .
      • Trained workers are employed by a leasing company, which provides them to employers when needed for a flat fee.
      • Typically remain with an organization for longer periods of time.
    • Questions???
  •  
  • Selection
  • 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
  • Internal Environmental Factors Influencing Selection
    • Organization characteristics that can influence the selection process:
      • Size
      • Complexity
      • Technological ability
  • External Environmental Factors Influencing Selection
    • Government employment laws and regulations
    • Size, composition, and availability of local labor markets
  • Selection Criteria Formal Education Experience and Past Performance Physical Characteristics Personal Characteristics and Personality Type
  • Reliability of Selection Criteria
    • Reliability – how stable or repeatable a measurement is over a variety of testing conditions.
  • Validity of Selection Criteria
    • Validity – addresses the questions of:
      • What a selection tool measures
      • How well it has measured it
    • It is not sufficient for a selection tool to be reliable
    • The selection tool must also be valid
  • Steps in the Selection Process 4. Background and Reference Checks 5. Selection Decision 6. Physical Examination 2. Employment Interview 3. Employment Tests 1. Preliminary Screening
  • The Selection Process
    • Initial Screening
      • Involves screening of inquiries and screening interviews.
      • Job description information is shared along with a salary range.
  • The Selection Process
    • Employment Interview
    • Interviews involve a face-to-face meeting with the candidate to probe areas not addressed by the application form or tests
    • Two strategies for effective use of interviews:
      • 1. Structuring the interview to be reliable and valid
      • 2. Training managers on best interview techniques
  • The Selection Process
    • Types of Interviews:
    • Unstructured interview
    • Structured interview
    • Behavioral Interviews
      • Candidates are observed not only for what they say, but how they behave.
      • Role playing is often used.
    • Stress Interviews.
  • The Selection Process
    • Realistic Job Preview
      • RJP’s present unfavorable as well as favorable information about the job to applicants.
      • May include brochures, films, tours, work sampling, or verbal statements that realistically portray the job.
      • RJP’s reduce turnover without lowering acceptance rates.
  • The Selection Process
    • Employment Tests
    • Mechanism that attempts to measure certain characteristics of individuals, e.g.,
      • aptitudes
      • intelligence
      • personality
    • Should be validated before being used to make hiring decisions
  • The Selection Process
    • Employment Tests
    • Estimates say 60% of all organizations use some type of employment tests.
      • Performance simulation tests : requires the applicant to engage in specific job behaviors necessary for doing the job successfully.
      • Work sampling : Job analysis is used to develop a miniature replica of the job on which an applicant demonstrates his/her skills.
  • The Selection Process
    • Employment Tests
      • Assessment centers : A series of tests and exercises, including individual and group simulation tests, is used to assess managerial potential or other complex sets of skills.
      • Testing in a global arena : Selection practices must be adapted to cultures and regulations of host country.
  • The Selection Process
    • Background Investigation :
    • Verify information from the application form
    • Typical information verified includes:
      • former employers
      • previous job performance
      • education
      • legal status to work
      • credit references
      • criminal records
  • The Selection Process
    • Background Investigation
    • Do not always provide an organization with meaningful information about applicants
    • Concerns over the legality of asking for and providing confidential information about applicants
  • The Selection Process
    • Physical Examinations
    • Should be required only after a conditional offer of employment has been made
  • Summary
    • Putting more money into selection can significantly reduce the amount of money it must spend on training
    • A selection system will make some mistakes
      • No guarantee of successful job performance
  • Questions????
  • Training and Development By: Magda Hassan
  • Agenda
    • The Socialization Process.
    • Employee Orientation.
    • Employee Training
    • Employee Development.
    • Organization Development.
    • Evaluation of Training Program.
  • Introduction
    • Socialization, training and development are all used to help new employees adapt to their new organizations and become fully productive.
    • Ideally, employees will understand and accept the behaviors desired by the organization, and will be able to attain their own goals by exhibiting these behaviors.
  • 1. The socialization Process
    • Socialization
      • A process of adaptation to a new work role.
      • Adjustments must be made whenever individuals change jobs
      • The most profound adjustment occurs when an individual first enters an organization.
  • 1. The socialization Process
    • The assumptions of employee socialization:
      • Socialization strongly influences employee performance and organizational stability
      • Provides information on how to do the job and ensuring organizational fit.
      • New members suffer from anxiety , which motivates them to learn the values and norms of the organization.
  • 1. The socialization Process
    • The assumptions of employee socialization:
      • Socialization is influenced by subtle and less subtle statements and behaviors exhibited by colleagues, management, employees, clients and others.
      • Individuals adjust to new situations in remarkably similar ways.
      • All new employees go through a settling-in period.
  • 1. The socialization Process A Socialization Process
  • 1. The socialization Process
    • The Socialization Process
      • Prearrival stage : Individuals arrive with a set of values, attitudes and expectations which they have developed from previous experience and the selection process.
  • 1. The socialization Process
    • The Socialization Process
      • Encounter stage : Individuals discover how well their expectations match realities within the organization.
      • Where differences exist, socialization occurs to imbue the employee with the organization’s standards.
  • 1. The socialization Process
    • The Socialization Process
      • Metamorphosis stage : Individuals have adapted to the organization, feel accepted and know what is expected of them.
  • 2. New-Employee Orientation Purpose
    • Orientation may be done by the supervisor, the HRM staff or some combination.
    • Formal or informal, depending on the size of the organization.
    • Covers such things as:
      • The organization’s objectives
      • History
      • Philosophy
      • Procedures
      • Rules
      • HRM policies and benefits
      • Fellow employees
  • 2. New-Employee Orientation
    • Learning the Organization’s Culture
      • Culture includes long-standing, often unwritten rules about what is appropriate behavior.
      • Socialized employees know how things are done, what matters, and which behaviors and perspectives are acceptable.
  • 2. New-Employee Orientation Roles
    • The CEO’s Role in Orientation
    • Senior management are often visible during the new employee orientation process.
    • CEOs can:
      • Welcome employees.
      • Provide a vision for the company.
      • Introduce company culture -- what matters.
      • Convey that the company cares about employees.
      • Allay some new employee anxieties and help them to feel good about their job choice.
  • 2. New-Employee Orientation
    • HRM’s Role in Orientation
    • Coordinating Role : HRM instructs new employees when and where to report; provides information about benefits choices.
    • Participant Role : HRM offers its assistance for future employee needs (career guidance, training, etc.).
  • 3. Employee Training
    • Definitions
      • Employee training
      • a learning experience designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job.
      • Employee development
      • future-oriented training, focusing on the personal growth of the employee.
  • 3. Employee Training Determining Training Needs
  • 4. Methods of Employee Training
    • On-the-job training methods
      • Job Rotation
      • Understudy Assignments
    • Off-the-job training methods
      • Classroom lectures
      • Films and videos
      • Simulation exercises
      • Vestibule training
  • 5.Employee Development
    • This future-oriented set of activities is predominantly an educational process.
    • All employees, regardless of level, can benefit from the methods previously used to develop managerial personnel.
  • 5.Employee Development
    • Employee development methods
      • Job rotation involves moving employees to various positions in the organization to expand their skills, knowledge and abilities.
      • Assistant-to positions allow employees with potential to work under and be coached by successful managers.
  • 6. Employee Development Methods
    • Employee development methods
      • Committee assignments provide opportunities for:
        • decision-making
        • learning by watching others
        • becoming more familiar with organizational members and problems
      • Lecture courses and seminars benefit from today’s technology and are often offered in a distance learning format.
  • 6. Employee Development Methods
    • Employee development methods
      • Simulations include case studies, decision games and role plays and are intended to improve decision-making.
      • Outdoor training typically involves challenges which teach trainees the importance of teamwork.
  • 7. Organization Development
    • What is change?
    • OD efforts support changes that are usually made in four areas:
      • The organization’s systems
      • Technology
      • Processes
      • People
  • 7. Organization Development
    • Two metaphors clarify the change process.
      • The calm waters metaphor describes unfreezing the status quo, change to a new state, and refreezing to ensure that the change is permanent.
      • The white-water rapids metaphor recognizes today’s business environment which is less stable and not as predictable.
  • 8. Evaluating Training and Development Effectiveness
    • Evaluating Training Programs:
    • Typically, employee and manager opinions are used,
      • These opinions or reactions are not necessarily valid measures
      • Influenced by things like difficulty, entertainment value or personality of the instructor.
    • Performance-based measures (benefits gained) are better indicators of training’s cost-effectiveness.
  • Performance Appraisal and Compensation By: Yomna Sameer
  • Evaluating Employee Performance - Agenda
    • Purpose of performance management system
    • Difficulties in performance management system
    • Steps of the Appraisal process
    • Appraisal methods
  • Performance Evaluation
    • The performance management systems need to include:
      • decisions about who should evaluate performance
      • what format should be used
      • how the results should be utilized
  • Purposes of a Performance Management System
      • Feedback - let employees know how well they have done and allow for employee input.
      • Development – identify areas in which employees have deficiencies or weaknesses.
  • Difficulties in Performance Management Systems
      • Focus on the individual : Discussions of performance may elicit strong emotions and may generate conflicts when subordinates and supervisors do not agree.
  • Difficulties in Performance Management Systems
      • Focus on the process : Company policies and procedures may present barriers to a properly functioning appraisal process.
      • Additionally, appraisers may be poorly trained.
  • The Appraisal Process
  • Step 1 and 2
    • Establishment of performance standards
      • Derived from company’s strategic goals.
      • Based on job analysis and job description.
    • Communication of performance standards to employee.
  • Step 3 and 4
    • Measurement of performance using information from:
      • personal observation
      • statistical reports
      • oral reports
      • written reports
    • Comparison of actual performance with standards.
  • Step 5 and 6
    • Discussion of appraisal with employee.
    • Identification of corrective action where necessary.
      • Basic corrective action deals with causes.
  • Appraisal Methods
    • Three approaches:
    • Absolute standards
    • Relative standards
    • Objectives
  • 1. Absolute Standards
    • Evaluating absolute standards :
    • An employee’s performance is measured against established standards.
    • Evaluation is independent of any other employee.
  • 1. Absolute Standards
      • Essay Appraisal : Appraiser writes narrative describing employee performance & suggestions.
      • Critical Incident Appraisal : Based on key behavior incident illustrating effective or ineffective job performance.
  • 1. Absolute Standards
      • Checklist Appraisal : Appraiser checks off behaviors that apply to the employee.
      • Adjective Rating Scale Appraisal : Appraiser rates employee on a number of job-related factors.
  • 1. Absolute Standards
      • Forced-Choice Appraisal: Appraisers choose from sets of statements which appear to be equally favorable, the statement which best describes the employee.
  • 1. Absolute Standards
    • Behaviorally Anchored Rating Scales (BARS): Appraiser rates employee on factors which are defined by behavioral descriptions illustrating various dimensions along each rating scale.
  • 2. Relative Method
    • Employees are evaluated by comparing their performance to the performance of other employees.
  • 2. Relative Method
    • Group Order Ranking : Employees are placed in a classification reflecting their relative performance, such as “top one-fifth.”
  • 2. Relative Method
      • Individual Ranking : Employees are ranked from highest to lowest.
      • Paired Comparison :
        • Each individual is compared to every other.
        • Final ranking is based on number of times the individual is preferred member in a pair.
  • 3. Achieved Outcome Method
      • Management by Objectives (MBO) ‏
      • includes mutual objective setting and evaluation based on the attainment of the specific objectives
  • 3. Achieved Outcome Method
      • Common elements in an MBO program are:
        • goal specificity
        • participative decision making
        • an explicit time period
        • performance feedback
      • Effectively increases employee performance and organizational productivity.
  • Creating More Effective Performance Management Systems
  • Development of Compensation and Pay systems - Agenda
    • Objectives of compensation
    • Types of rewards
    • Development of a base pay system
  • Objectives of compensation
    • Efficiency
      • Quality
      • Performance
      • Cost
    • Fairness
    • Compliance
  • Types of Reward Plans
    • Intrinsic versus Extrinsic Rewards
    • Intrinsic rewards (personal satisfactions) come from the job itself, such as:
      • pride in one’s work
      • feelings of accomplishment
      • being part of a work team
  • Types of Reward Plans
    • Intrinsic versus Extrinsic Rewards
    • Extrinsic rewards come from a source outside the job
      • include rewards offered mainly by management
      • Money
      • Promotions
      • Benefits
  • Types of Reward Plans
    • Financial versus Non-financial Rewards
    • Financial rewards include:
      • wages
      • bonuses
      • profit sharing
      • pension plans
      • paid leaves
      • purchase discounts
    • Non-financial rewards emphasize making life on the job more attractive; employees vary greatly on what types they find desirable.
  • Introduction
  • Development of a Base Pay System Job Analysis Job Evaluation Pay Survey Pay Structure & Grades Job Structure
  • Development of a Base Pay System
    • Job Evaluation
    • Use of job analysis information to determine the relative value of each job in relation to all jobs within the organization.
      • The ranking of jobs
      • Labor market conditions
      • Collective bargaining
      • Individual skill differences
  • Development of a Base Pay System
    • Job Evaluation Methods
    • Ordering method : A committee places jobs in a simple rank order from highest (worth highest pay) to lowest.
  • Development of a Base Pay System
    • Job Evaluation Methods
    • Classification method :
      • Jobs are placed in classification grades
      • Compare their descriptions to the classification description and benchmarked jobs
      • Look for a common denominator such as skills, knowledge, or responsibility
  • Development of a Base Pay System
    • Job Evaluation Methods
    • Point method :
      • Jobs are rated and allocated points on several identifiable criteria, using clearly defined rating scales.
      • Jobs with similar point totals are placed in similar pay grades.
      • Offers the greatest stability.
  • Development of a Base Pay System
    • Establishing the Pay Structure
    • Compensation surveys
      • Used to gather factual data on pay rates for other organizations
      • Information is often collected on associated employee benefits as well
  • Any Questions
    • ?