HRM Presentation


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My report on Training & Performance Appraisal

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  • Employee development: by determining weaknesses of an employee we are better able to train to lessen them Documentation: justification for employee decisions. e.g. employee termination could be justified byhis bad performance record
  • Inflationary pressures: inflating or upgrading appraisals in order to lessen negative repercussions of appraisals Inappropriate substitutes for performance: the using a different criteria in place of another. For example, if criteria for a salespersons appraisal is affected by outside factors (economics) an appraiser may opt to use promptness, congeniality, etc as a place holder for this attribute
  • HRM Presentation

    1. 1. Management of Human Resources Performance Appraisal, Objective Measurement Training: Content, Process, Outcome
    2. 2. Agenda <ul><li>Performance Appraisal </li></ul><ul><ul><li>Definition </li></ul></ul><ul><ul><li>History </li></ul></ul><ul><ul><li>Purpose </li></ul></ul><ul><ul><li>Appraisal Process </li></ul></ul><ul><ul><li>Methods of Measurement </li></ul></ul><ul><ul><li>Distortions </li></ul></ul><ul><li>Training </li></ul><ul><ul><li>Definition </li></ul></ul><ul><ul><li>Purpose </li></ul></ul><ul><ul><li>Determining Training Needs </li></ul></ul><ul><ul><li>Types </li></ul></ul><ul><ul><li>Methods of Measurement </li></ul></ul>
    3. 3. Performance Appraisal
    4. 4. Performance Appraisal <ul><li>A method by which the job performance of an employee is evaluated in terms of quality, quantity, time, cost, typically by the corresponding manager </li></ul>
    5. 5. History <ul><li>Roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies </li></ul><ul><li>Performance appraisal systems began as simple methods of income justification </li></ul><ul><li>As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War </li></ul>
    6. 6. Purpose <ul><li>Provides feedback to employees </li></ul><ul><li>Employee development </li></ul><ul><li>Provides basis for management decisions </li></ul><ul><li>Documentation </li></ul>
    7. 7. Appraisal Process Establish Performance Standards with Employees Communicate Expectations Measure Actual Performance Compare Actual Performance with Standards Discuss the Appraisal with the Employee If Necessary, initiate Corrective Action
    8. 8. Appraisal Methods <ul><li>Absolute standards </li></ul><ul><li>Relative standards </li></ul><ul><li>Outcomes </li></ul>
    9. 9. Appraisal Methods <ul><li>Absolute Standards: employees are compared to a standard, & their evaluation is independent of any other employee in a work group </li></ul>
    10. 10. Types of Absolute Standards <ul><li>Critical incident appraisal </li></ul><ul><li>Checklist </li></ul><ul><li>Graphic rating scale </li></ul><ul><li>Forced choice </li></ul><ul><li>Behaviorally anchored rating scales </li></ul>
    11. 11. Types of Absolute Standards <ul><li>Critical Incident Appraisal </li></ul><ul><li>Performance evaluation that focuses on key behaviors that differentiates between doing the job effectively or ineffectively </li></ul><ul><li>The appraiser writes down anecdotes describing employee actions that were especially effective or ineffective </li></ul>
    12. 12. Types of Absolute Standards <ul><li>Critical Incident Appraisal </li></ul><ul><li>Strengths: </li></ul><ul><ul><li>It focuses on behaviors </li></ul></ul><ul><ul><li>Positive incidents can provide good examples for other employees </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Time consuming </li></ul></ul><ul><ul><li>Not quantifiable </li></ul></ul>
    13. 13. Types of Absolute Standards <ul><li>Checklist Appraisal </li></ul><ul><li>Performance evaluation in which a rater checks off applicable employee attributes </li></ul><ul><li>Appraiser uses a list of behavioral descriptions & checks off behaviors that apply to the employee </li></ul><ul><li>HR evaluator evaluates employee, the appraiser merely records the data </li></ul>
    14. 14. Checklist Appraisal Sample Checklist Yes No 1) are the supervisors orders usually followed? 2) does the individual approach customers promptly? 3) does the individual suggest additional merchandise to customers? 4) does the individual keep busy whenn not serving a customer? 5) does the individual lose his temper in public? 6) does the individual volunteer to help other employees?
    15. 15. Types of Absolute Standards <ul><li>Checklist Appraisal </li></ul><ul><li>Strengths: </li></ul><ul><ul><li>Reduces bias because the rater & the scorer are different </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Inefficient & time consuming to develop individualized checklist items for numerous job categories </li></ul></ul>
    16. 16. Types of Absolute Standards <ul><li>Graphic Rating Scale </li></ul><ul><li>A performance appraisal method that lists traits & a range of performance for each </li></ul><ul><li>Used to assess factors such as quantity & quality of work, job knowledge, cooperation, loyalty, dependability, attendance, honesty, integrity, attitudes, & initiative </li></ul>
    17. 17. Graphic Rating Scale Sample Performance Factor Performance Rating Quality of work, skill, completeness Consistently unsatisfactory Occasionally unsatisfactory Consistently satisfactory Sometimes superior Consistently superior Quantity of work done in a day Consistently unsatisfactory Occasionally unsatisfactory Consistently satisfactory Sometimes superior Consistently superior Job knowledge is information pertinent to the job that an individual should have for satisfactory job performance Poorly informed about work duties Occasionally unsatisfactory Can answer most questions about the job Understands all phases of the job Has complete mastery of all phases of the job Dependability is following directions & company policies without supervision Requires constant supervision Requires occasional follow up Usually can be counted on Requires little supervision Requires absolute minimum supervision
    18. 18. Types of Absolute Standards <ul><li>Graphic Rating Scale </li></ul><ul><li>Strengths: </li></ul><ul><ul><li>Less time consuming to develop & administer </li></ul></ul><ul><ul><li>Provide quantitative analysis useful for comparison </li></ul></ul><ul><ul><li>Compared against checklist, more generalization of items makes it possible to compare individuals in diverse job categories </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Do not provide the dept of information essays or critical incident method </li></ul></ul>
    19. 19. Types of Absolute Standards <ul><li>Forced Choice Appraisal </li></ul><ul><li>A type of checklist where the rater must choose between two or more statements </li></ul><ul><li>The appraisers job is to identify which statement is most descriptive of the individual being evaluated </li></ul>
    20. 20. Forced Choice Sample <ul><li>“ Would you rather go to a party with a group of friends or attend a lecture by a well known political figure?” </li></ul>
    21. 21. Types of Absolute Standards <ul><li>Forced Choice Appraisal </li></ul><ul><li>Strengths: </li></ul><ul><ul><li>Reduces bias & distortion because the appraiser knows the right answer </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>People being appraised tend to dislike this method because they are being forced to answer </li></ul></ul><ul><ul><li>Frustration arises from not knowing the right answer </li></ul></ul>
    22. 22. Types of Absolute Standards <ul><li>Behaviorally Anchored Rating Scale </li></ul><ul><li>A performance appraisal technique that generates critical incidents & develops behavioral dimensions of performance </li></ul><ul><li>Combines major elements of graphic rating & critical incident methods </li></ul>
    23. 23. Behaviorally Anchored Rating Sample <ul><li>Position: Employee Relations Specialist </li></ul><ul><li>Job Dimension: Ability to absorb & interpret policies </li></ul><ul><li>This Employee Relations Specialist: </li></ul><ul><li>9. could be expected to serve as an information source concerning new & changed policies for others in the organization </li></ul><ul><li>8. could be expected to be aware quickly of program changes & explain these to employees </li></ul><ul><li>7. could be expected to reconcile conflicting policies & procedures correctly </li></ul><ul><li>6. could be expected to recognize the need for additional information to understand better policy changes </li></ul><ul><li>5. could be expected to complete various HRM forms after receiving instruction </li></ul><ul><li>4. could be expected to require some help in mastering new policies </li></ul><ul><li>3. could be expected to know that there is always a problem but encounter errors before realizing his mistake </li></ul><ul><li>2. could be expected to incorrectly interpret guidelines </li></ul><ul><li>1. could be expected to be unable to learn new procedures after explanations </li></ul>
    24. 24. Types of Absolute Standards <ul><li>Behaviorally Anchored Rating Scale </li></ul><ul><li>Strengths: </li></ul><ul><ul><li>Specific feedback that it communicates </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Suffers from same distortions inherent in all rating methods </li></ul></ul>
    25. 25. Appraisal Methods <ul><li>Relative Standards: Evaluating an employee's performance by comparing the employee with other employees </li></ul>
    26. 26. Types of Relative Standards <ul><li>Group Order Ranking </li></ul><ul><li>Individual Ranking </li></ul><ul><li>Paired Comparison </li></ul>
    27. 27. Types of Relative Standards <ul><li>Group Order Ranking </li></ul><ul><li>Evaluating an employee's performance by by placing them into a particular classification </li></ul><ul><li>Example: evaluator places employees into a particular classification such as top 20% of the population </li></ul>
    28. 28. Types of Relative Standards <ul><li>Group Order Ranking </li></ul><ul><li>Strengths: </li></ul><ul><ul><li>Prevents rater from inflating their evaluations so that everyone looks good or average </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>If the population is small, even if all are excellent evaluator is forced to place an excellent employee into the last places </li></ul></ul><ul><ul><li>Zero-sum game consideration. </li></ul></ul>
    29. 29. Types of Relative Standards <ul><li>Individual Ranking </li></ul><ul><li>Ranking employees performance from highest to lowest </li></ul><ul><li>Same advantages & disadvantages as group order ranking </li></ul>
    30. 30. Types of Relative Standards <ul><li>Paired Comparison </li></ul><ul><li>Ranking Individuals performance by counting the times any one individual is the preferred member when compared with all other employees </li></ul><ul><li>Appraiser selects one job trait, & compares each employee in a group with others. Score is obtained by the summation of the number of times the employee is superior </li></ul>
    31. 31. Paired Comparison Sample <ul><li>Job Skills Evaluated: Innovation & Creativity </li></ul>Employee Being Rated Comparison with Admir Betty Carmen Dante Emilio Admir - - - - Betty + + - + Carmen + - - - Dante + + + + Emilio + - - -
    32. 32. Types of Relative Standards <ul><li>Strengths: </li></ul><ul><ul><li>Each employee is compared against every other </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Difficult to accomplish if the company has many employees </li></ul></ul>
    33. 33. Appraisal Methods <ul><li>Outcomes: an appraisal method that includes mutual objective setting & evaluation based on attainment of the specific objectives </li></ul>
    34. 34. Common Elements of MBO <ul><li>Specific goals </li></ul><ul><li>Participative decision making </li></ul><ul><li>Specific time period </li></ul><ul><li>Performance feedback </li></ul>
    35. 35. Factors that Distort Appraisals <ul><li>Leniency error </li></ul><ul><li>Halo error </li></ul><ul><li>Similarity error </li></ul><ul><li>Central tendency </li></ul><ul><li>Inflationary pressures </li></ul><ul><li>Inappropriate substitutes </li></ul>
    36. 36. Factors that Distort Appraisals <ul><li>Leniency Error: performance appraisal distortion caused by evaluating employees against one's own value system </li></ul>
    37. 37. Factors that Distort Appraisals <ul><li>Halo Error: the tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits </li></ul>
    38. 38. Factors that Distort Appraisals <ul><li>Similarity Error: evaluating employees based on the way an evaluator perceives himself or herself </li></ul>
    39. 39. Factors that Distort Appraisals <ul><li>Central Tendency: the tendency of a rater to give average ratings </li></ul>
    40. 40. Creating Effective Appraisal Systems <ul><li>Use behavior based measures </li></ul><ul><li>Combine absolute & relative standards </li></ul><ul><li>Provide ongoing feedback </li></ul><ul><li>Use multiple raters </li></ul><ul><li>Rate selectively </li></ul><ul><li>Train appraisers </li></ul>
    41. 41. Creating Effective Appraisal Systems <ul><li>Use behavior based measures: do not rate using 'traits' such as loyalty, courage, reliability, etc. since these are objective & do not equate into productiveness </li></ul>
    42. 42. Creating Effective Appraisal Systems <ul><li>Combine absolute & relative standards: AS is biased towards positive leniency, while RS has little actual variability. Solution is to mix them up so that they cancel each others weaknesses </li></ul>
    43. 43. Creating Effective Appraisal Systems <ul><li>Provide ongoing feedback: do not sum up all negative feedback for a long period of time before giving it to the employee. This will make the appraisal an unpleasant experience which the employee will try to avoid </li></ul>
    44. 44. Creating Effective Appraisal Systems <ul><li>Use multiple raters: probability tells us that as the number of raters increase, so does the probability of attaining more accurate information </li></ul><ul><ul><li>Peer evaluations </li></ul></ul><ul><ul><li>Upward appraisal </li></ul></ul><ul><ul><li>360 degree appraisals </li></ul></ul>
    45. 45. Creating Effective Appraisal Systems <ul><li>Rate selectively: appraisers should only rate those areas in which they have job knowledge </li></ul>
    46. 46. Creating Effective Appraisal Systems <ul><li>Train appraisers: appraising employees correctly is a difficult job & is often underestimated. Training is needed to eliminate bias & halo effects </li></ul>
    47. 47. Training
    48. 48. Definition of Training <ul><li>Employee Training: present oriented training that focuses on individuals current job </li></ul><ul><li>Employee Development: future oriented training that focuses on employee personal growth </li></ul><ul><li>New Employee Orientation : activities that introduce new employees to the organization & their work unit </li></ul>
    49. 49. Purpose of Training <ul><li>Onboarding: </li></ul><ul><ul><li>Expands information received about the company during the recruitment stage </li></ul></ul><ul><ul><li>Helps reduce initial anxiety during the beginning of the job </li></ul></ul><ul><ul><li>Hastens familiarization with the company's objectives, culture, philosophy, rules, procedures, etc </li></ul></ul>
    50. 50. Purpose of Training <ul><li>Employee Training </li></ul><ul><ul><li>Maintenance of human errors </li></ul></ul><ul><ul><li>Improving productivity </li></ul></ul><ul><li>Employee Development </li></ul><ul><ul><li>Employee advancement / growth </li></ul></ul>
    51. 51. Determining Training Needs What deficiencies if any do Incumbents have in the skills, Knowledge, abilities, required To exhibit the necessary job behaviors? What behaviors are Necessary for each job Incumbent to complete his Arranged tasks? What are the organizations goals? What task must be completed To achieve the goals? Is There a need for training?
    52. 52. Typical Training Methods <ul><li>On the job </li></ul><ul><ul><li>Job rotation </li></ul></ul><ul><ul><li>Apprenticeships </li></ul></ul><ul><ul><li>Internships </li></ul></ul><ul><li>Off the job </li></ul><ul><ul><li>Classroom lectures </li></ul></ul><ul><ul><li>Multimedia training </li></ul></ul><ul><ul><li>Simulations </li></ul></ul><ul><ul><li>Vestibule training </li></ul></ul>
    53. 53. Typical Training Methods <ul><li>Job rotation: involves lateral transfers that allow employees to work on different jobs & provides exposure to various tasks </li></ul>
    54. 54. Typical Training Methods <ul><li>Apprenticeships: combination of classroom instruction & working alongside a seasoned veteran </li></ul><ul><li>Used mainly in skilled trades </li></ul>
    55. 55. Typical Training Methods <ul><li>Internships: students in higher education use their instruction & training in a chosen profession as part of their education. </li></ul><ul><li>Used by companies to minimize recruitment expenses </li></ul>
    56. 56. Typical Training Methods <ul><li>Classroom lectures: typical classroom instruction </li></ul><ul><li>Multimedia learning: demonstrates technical skills not easily presented by other methods. Can either be videos or online </li></ul><ul><li>Simulations: case studies, experiments, computer simulation, group interaction </li></ul>
    57. 57. Typical Training Methods <ul><li>Vestibule training: training using the same equipment but in a simulated work environment </li></ul>
    58. 58. Typical Training Methods <ul><li>Adventure training: wilderness/ outdoor/ survival training used to develop teamwork </li></ul><ul><li>Sample in next slide </li></ul>
    59. 59. Measuring Training Effectiveness <ul><li>Easy example: </li></ul><ul><li>Advance driving techniques training allows a delivery truck driver to make 5 more deliveries per day. Each delivery is $10 of the drivers time: </li></ul><ul><li>$10 x 5 additional deliveries = $50 benefit per day for the employer </li></ul>
    60. 60. Measuring Training Effectiveness <ul><li>Kirkpatrick's Model: </li></ul><ul><li>Level 1: measures the reactions of participants toward the training & answers questions about whether the participants liked the training, achieved the goals, liked the trainers, suggestion to improve the training </li></ul>
    61. 61. Measuring Training Effectiveness <ul><li>Level 2: measures how much participants learned using pre & post testing or by comparing against a group that did not go through the training </li></ul>
    62. 62. Measuring Training Effectiveness <ul><li>Post training performance method: evaluating training programs based on how well employees can perform their jobs after training </li></ul>
    63. 63. Measuring Training Effectiveness <ul><li>Pre-Post Training Performance Method : evaluating training programs based on the difference in performance before & after training </li></ul>
    64. 64. Measuring Training Effectiveness <ul><li>Pre-Post Training performance with control group Method: evaluating training by comparing pre & post training results with individuals </li></ul>
    65. 65. Measuring Training Effectiveness <ul><li>Level 3: measures whether the training actually changes the employees behavior. </li></ul>
    66. 66. Measuring Training Effectiveness <ul><li>Level 4: measures whether the training benefited the employee or not. Done by conducting ROI, productivity tests, or comparing against a benchmark </li></ul>
    67. 67. References <ul><li>Human Resource Management 10 th Edition by David A. Decenzo & Stephen P. Robbins </li></ul><ul><li>Kokology by Tadahiko Nagao & Isamu Saito </li></ul><ul><li>Kokology 2 by Tadahiko Nagao & Isamu Saito </li></ul>
    68. 68. -END-