SlideShare a Scribd company logo
1 of 398
Download to read offline
INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
1
OBJECTIVES
● Describe and explain the role of human resource management
● Identify the factors in the business environment that present challenges to firms trying to effectively
manage human resources.
● Recognize the impact of strategic human resource planning on the efficiency of government functions and
formulate practical business solutions to critical HR issues;
● Explain the significance of human resource planning, the recruitment process, employee selection, and
employee training
● Identify how wellness, training and work-life balance policies impact retention;
● Apply best practices in performance management, performance appraisal, and employee development;
● Explain the functions of job design, standards of employment law and techniques for retention
2
REQUIRED TEXTBOOK
ISBN 10: 0-13-517278-0
ISBN 13: 978-0-13-517278-0
3
● Quizzes 20%
● Group presentation 20%
● Final report 60%
ASSESSMENT TASKS
4
Group presentation - what and how
● Group presentation
● - Each group selects one case study at the end of each chapter to present
● - Prepare and deliver a presentation within 15 – 20 minutes and 5-10 minutes for Q&A.
● - Presentation outline must be sent to Teacher
● NB: Each group needs one - two presenters (Not all members are required to present)
5
Presentation
1. Theory review
- Briefly summarize relevant theory
2. Case summary
- Source
- Summary
3. Case analysis
Apply the relevant theory to analyze/explain/solve the problems in the case (by
answering the questions following the case)
4. Conclusion
5. Q &A
6
presentation Assessment
Marking criteria Weight
1. Clear opening/introduction and conclusion of the
presentation
5 points
2. Theory review and Summary of the case 15
3. Discussion of given questions and use of appropriate and
relevant theory
20
4. Oral presentation skills 20
5. Use of visual aids, slide design… 20
6. Q&A 20
Total = ……/100
7
quizzes
● Students individually do a quizzes in week 13
● In terms of format, there are three parts in each quiz including:
● (1) multiple choice questions (2) true or false (3) short answer
● In terms of content, each quiz focus on different aspects covered in the course from
chapter 1 to chapter 18.
● In terms of administration, the quiz is conducted at the beginning of the lesson as
scheduled. Therefore, students must be on time for the test.
● There will be NO MAKE-UP QUIZ for those who turn up late.
8
Final assignment
● Student work in groups to do case study ( translating strategy into HR policies and
Practices Case)
9
Guidelines for writing the final assignment
● The sections of the report should include:
● 1. Title page
● 2. Table of content
● 3. Introduction
● ✓ Purpose of the report
● ✓ Background information about the case
● 4. Conceptual background
● ✓ Review ALL the identified theoretical issues in a logical flow
● 5. Analysis
● ✓ Use relevant theories in the conceptual background to answer the guiding questions
● ✓ The answer to the guiding questions should be presented in a logical order instead of
listing the answers one by one.
● 6. Conclusion/ Recommendation
● ✓ Based on the relevant theory make recommendations for improvement or solution to the
situation
● 7. Reference list
● ✓ Remember to list ALL sources of information that are used in the report. Failure to do so
will result in 3 points taken off the grade of the assignment
10
policy
1. Students are expected to assist in maintaining a classroom environment which is conducive
to learning. Inappropriate behavior in the classroom shall result in, minimally, a request to leave
class.
2. Attendance is REQUIRED and will be MONITORED throughout the semester. Incidences of
excessive absence will be dealt with in a manner consistent with University policy and
procedures.
3. Any student who, because of a disabling condition, may require special arrangements in
order to meet course requirements should contact the instructor as soon as possible to make
necessary accommodations.
4. Any instance of cheating will result in an (F) for the course. The instructor reserves the right to
pursue the matter further.
5. You will be given a grade of a zero for any test you miss until you replace it with the makeup
exam’s grade. Tentative Course Outline (Instructors may or may not finish all chapters listed
below
11
Weekly
schedule
Chapters 1&2
Chapter 3
01
02
Chapter 4
Chapter 5
03
04
12
INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
01
13
Lesson objectives
• Explain what HRM is & how it relates to the
management process
• Briefly discuss & illustrate the important
trends influencing HRM
• Briefly describe 6 important pillars of HRM
• List some HRM competences
14
I.
WHAT IS HUMAN RESOURCE
MANAGEMENT?
15
AN ORGANIZATION
People work together to achieve the
common goals
A MANAGER
Manages the efforts of the
organization’s people
16
MANAGEMENT PROCESS
17
Human resource management
the process of acquiring, training, appraising, and
compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.
18
aspects of HR management
● Conducting job analyses (determining the nature of each employee’s
job).
● Planning labor needs and recruiting job candidates.
● Selecting job candidates.
● Orienting and training new employees.
● Managing wages and salaries (compensating employees).
● Providing incentives and benefits.
● Appraising performance.
● Communicating (interviewing, counseling, disciplining).
● Training employees and developing managers.
● Building employee relations and engagement
19
aspects of HR management
And what every manager should know about:
● Equal opportunity and affirmative action.
● Employee health and safety.
● Handling grievances and labor relations
20
Avoid personnel
mistakes
You may spend time as
a HR manager
Improve profit &
performance
Why is HRM important?
21
Avoid personnel mistakes
- To have your employees not doing their best.
- To hire the wrong person for the job
- To experience high employee turnover.
- To have your company in court due to your discriminatory
actions.
- To have an employee hurt due to unsafe practices.
- To let a lack of training undermine your department’s
effectiveness.
- To commit any unfair labor practices.
22
Authority the right to make decisions, to direct the work of others, and to give orders
Line authority gives managers the right to issue orders to other
managers or employees
Staff authority gives a manager the right to advise other managers
or employees.
Line
manager
Staff
manager
23
Line manager’s
responsibilities
1. Placing the right person in the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining departmental morale
10. Protecting employees’ health and physical conditions
24
25
II.
THE TREND SHAPING HRM
26
Workforce demographics & diversity trends
27
Workforce demographics & diversity trends
28
Workforce demographics & diversity trends
29
Workforce demographics & diversity trends
30
Workforce demographics & diversity trends
31
Workforce demographics & diversity trends
32
Trends in jobs people do
On-demand workers High-tech & skilled
human capital
Boosting customer
service
33
Globalization trends
34
Economic trends
Labor force trends
the percent of the population (particularly 25- to
54-year-olds) that wants to work is way down.
35
Technology trends
• Technological change is affecting the nature of jobs
• Technology is changing how employers get human resource management tasks done
➢ Social media
➢ Mobile apps
➢ Websites with gaming features
➢ Cloud-computing-based tools
➢ Data analytics
➢ Artificial intelligence
➢ Augmented reality 36
Technology trends
37
III.
IMPORTANT COMPONENTS
IN TODAY’S HRM
38
HR managers can refocus their efforts from day-
to-day activities like interviewing candidates to
broader efforts, such as formulating strategies
for boosting employee performance and
engagement.
FIGURE 1-4 What Trends Mean for Human
Resource Management
39
Strategic HRM
formulating and executing human
resource policies and practices that
produce the employee
competencies and behaviors the
company needs to achieve its
strategic aims
40
Performance & HRM
HR department lever
Employee costs lever
Strategic result lever
41
Sustainability & HRM
42
Employee engagement & HRM
• Employee engagement refers to being psychologically involved in, connected to, and
committed to getting one’s jobs done.
• Engaged employees “experience a high level of connectivity with their work tasks,”
and therefore work hard to accomplish their task-related goals.
43
Ethics & HRM
• Ethics means the standards someone uses to decide what his or her conduct should be.
• HR plays a big role in cultivating organizational ethics today
44
IV.
THE NEW HUMAN RESOURCE
MANAGER
45
• Leadership and Navigation The ability to direct and contribute to initiatives and
processes within the organization
• Ethical Practice The ability to integrate core values, integrity, and accountability
throughout all organizational
• and business practices
• Business Acumen The ability to understand and apply information with which to
contribute to the organization’s strategic plan
• Relationship Management The ability to manage interactions to provide service and to
support the organization
• Consultation The ability to provide guidance to organizational stakeholders
• Critical Evaluation The ability to interpret information with which to make business
decisions and recommendations
• Global and Cultural Effectiveness The ability to value and consider the perspectives and
backgrounds of all parties
• Communication The ability to effectively exchange information with stakeholders
46
SUMMARY
• Definition & the importance of HRM
• The trends shaping HRM
• Pillars of HRM today
• New competencies for HR managers
47
CHAPTER 4: JOB ANALYSIS AND THE
TALENT MANAGEMENT PROCESS
48
LESSON OBJECTIVES
• Define talent management, and explain what
talent management-oriented managers do.
• Discuss the process of job analysis, including why
it is important.
• Explain and use at least three methods of
collecting job analysis information.
• Explain how you would write a job description,
and what sources you would use.
• Explain how to write a job specification.
• Give examples of competency-based job
49
TALENT MANAGEMENT PROCESS
50
HRM PRACTICES (THE STEPWISE VIEW)
1. Decide what positions to fill, through job analysis, personnel planning, and forecasting.
2. Build a pool of job applicants, by recruiting internal or external candidates.
3. Obtain application forms and perhaps have initial screening interviews.
4. Use selection tools like tests, interviews, background checks, and physical exams to identify
viable candidates.
5. Decide to whom to make an offer.
6. Orient, train, and develop employees so they have the competencies to do their jobs.
7. Appraise employees to assess how they’re doing.
8. Compensate employees to maintain their motivation
51
NEW TREND: “MANAGING CHALLENGES THROUGH ATTRACTING
AND RETAINING PEOPLE: TOPPING UP ON TALENT”
- The value of human captial can be considered in terms
of the extend to which they contribute to the core
compentence or competitive advantage of the
organization.
- Competitive advantage in knowledge economies comes
largely from talent.
- “Talent” - the people - have capabilities that are unique
and valuable
- Organizations should engage these people as
employees, provide extensive training, career
development, broad roles and probably recruit on
potential.
52
Talent management as the holistic, integrated
and results- and goal-oriented process of
planning, recruiting, selecting, developing,
managing, and compensating employees.
Talent management is emerging as a new
discipline that builds on HRM and
ecompasses a long term and integrated
approach to managing employees – by
attracting them into organizations then
providing development and engagement
opportunities utilizing a sophisticated system
of HR practices
53
TALENT MANAGEMENT SOFTWARE
Amis
CeHuman
Ssoft Lucky HRM
Sinnova Hrms
Gold HRM
HRM PRO
LOTUS PRO
OOS GHR
FAST HRM Online
Perfect HRM54
THE BASICS OF JOB ANALYSIS
55
56
WHAT IS JOB ANALYSIS?
Job analysis The procedure for determining the
duties and skill requirements of a job and the
kind of person who should be hired for it.
Job descriptions A list of a
job’s duties,
responsibilities, reporting
relationships, working
conditions, and supervisory
responsibilities—one
product of a job analysis.
job specifications A list of
a job’s “human
requirements,” that is, the
requisite education, skills,
personality, and so on—
another product of a job
analysis.
57
USES OF JOB ANALYSIS INFORMATION
58
CONDUCTING JOB ANALYSIS
59
STEP 2: REVIEW RELEVANT BACKGROUND INFORMATION ABOUT THE JOB, SUCH
AS ORGANIZATION CHARTS AND PROCESS CHARTS
organization chart - A chart that shows the
organizationwide distribution of work, with titles of each
position and interconnecting lines that show who reports
to and communicates with whom.
process chart - A workflow chart that shows the
flow of inputs to and outputs from a particular job
workflow analysis - A detailed study of the
flow of work from job to job in a work process
60
BUSINESS PROCESS REENGINEERING
Redesigning business processes,
usually by combining steps, so
that small multifunction process
teams using information
technology do the jobs
formerly done by a sequence
of departments.
61
job enlargement - Assigning workers additional same-level
activities
job rotation - Systematically moving workers from one
job to another
job enrichment - Redesigning jobs in a way that increases
the opportunities for the worker to experience feelings of
responsibility, achievement, growth, and recognition
62
6. Develop job description and job
sepecification
STEP 3 – 6: 3. Select Representative
positions
4. Actually analyze the job
5. Verify the job analysis
information
6. Verify the Job
Analysis Information
63
METHODS FOR COLLECTING JOB ANALYSIS INFORMATION
64
65
INTERVIEW QUESTIONS
What is the job being performed?
What exactly are the major duties of your position?
What physical locations do you work in?
What are the education, experience, skill, [and any certification and licensing] requirements?
In what activities do you participate?
What are the job’s responsibilities and duties?
What are the basic accountabilities or performance standards that typify your work?
What are your responsibilities?
What are the environmental and working conditions involved?
What are the job’s physical, emotional, and mental demands?
What are the health and safety conditions? Are you exposed to any hazards or unusual working
conditions?
66
It’s a simple and quick way to collect
information
Distortion of information is the
main problem
67
position analysis questionnaire (PAQ) - A
questionnaire used to collect
quantifiable data concerning the
duties and responsibilities of various
jobs.
diary/log Daily listings made by
workers of every activity in which
they engage along with the time each
activity takes.
68
WRITING JOB DESCRIPTION
69
70
71
1. Job identification
2. Job summary
3. Responsibilities and
duties
4. Authority of incumbent
5. Standards of
performance
6. Working conditions
7. Job specification 72
JOB IDENTIFICATION
73
JOB SUMMARY
74
RESPONSIBILITIES AND DUTIES
75
AUTHORITY OF INCUMBENT
76
STANDARDS OF PERFORMANCE
Duty: Accurately Posting Accounts
Payable 1. Post all invoices received
within the same working day.
2. Route all invoices to the proper
department managers for approval no
later than the day following receipt.
3. Commit an average of no more than
three posting errors per month
77
WORKING CONDITION
78
WRITING JOB SPECIFICATION
79
80
81
SPECIFICATIONS FOR TRAINED VERSUS UNTRAINED PERSONNEL
focus on factors such as length of previous service,
quality of relevant training, and previous job
performance.
t specify qualities such as physical traits,
personality, interests, or sensory skills that imply
some potential for performing the job or for
trainability
82
Specifications based on jugement :
Self-created Judgement
Specifications based on statistical analysis - more
defensible, but it’s also more difficult. Attempts to
determine statistically the relationship between some
predictor (human trait such as height, intelligence, or
finger dexterity), and some indicator or criterion of
job effectiveness, such as performance as rated by
the supervisor.
83
JOB REQUIREMENTS MATRIX
A more complete description
of what the worker does
and how and why he or she
does it; it clarifies each
task’s purpose and each
duty’s required knowledge,
skills, abilities, and other
characteristics
84
85
USING COMPETENCIES MODELS
86
87
88
HUMAN RESOURCE MANAGEMENT
Chapter 5
Personnel
Planning and
Recruiting
89
5–2
CHAPTER 5
OBJECTIVES
90
The Recruitment and Selection Process
1. Decide what positions to fill through personnel planning
and forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and undergo
initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the supervisor
and others interview the candidates.
5–3
91
5–4
FIGURE 5–1 Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
92
Planning and Forecasting
u Employment or Personnel Planning
uThe process of deciding what positions
the firm will have to fill, and how to fill
them.
uPersonnel plans require some forecasts or
estimates of future staffing events to
provide the workers needed for the
company in the short, medium, and long
term at the right place and at the right
time. 5–5
93
Personnel planning process
u Reviews the firm’s personnel needs and workforce data
u Forecast and identify what positions the firm will have to fill
and potential workforce gaps
u Analyze the current supply of inside and outside candidates
u Identify needs-supply gaps
u Develop personnel plans to fill the anticipated gaps
5–6
94
Planning and Forecasting
u What to Forecast?
u Overall personnel needs
uExternal factors: Economic, Technology, Consumer
Preference, Competitors, Politics, Legislation
uInternal factors: Business strategies/goals, company
structure, productivity
5–7
95
Example of analyzing personnel needs
Source: https://www.youtube.com/watch?v=4OeTSzfIZ28 5–8
96
Example of analyzing personnel needs
5–9
97
Forecasting Personnel Needs
5–10
Trend analysis Ratio analysis
Forecasting Tools
Scatter plotting
98
5–11
FIGURE 5–3 Determining the Relationship Between
Hospital Size and Number of Nurses
Note: After fitting the line,
you can project how many
employees are needed,
given your projected volume.
Hospital Size
(Number
of Beds)
Number of
Registered
Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
99
Drawbacks to Traditional Forecasting
Techniques
u They focus on projections and historical relationships.
u They do not consider the impact of strategic initiatives on future
staffing levels.
u They support compensation plans that reward managers for
managing ever-larger staffs.
u They “bake in” the idea that staff increases are inevitable.
u They validate and institutionalize present planning processes and
the usual ways of doing things.
5–12
100
Forecasting the Supply of
Inside Candidates
5–13
Manual systems and
replacement charts
Computerized skills
inventories
Qualification
Inventories
101
5–14
FIGURE 5–4 Management Replacement Chart Showing Development
Needs of Potential Future Divisional Vice Presidents
102
Forecasting Outside Candidate Supply
u Factors In Supply of Outside Candidates
u General economic conditions
u Expected unemployment rate
u Sources of Information
u Periodic forecasts in business publications
u Online economic projections
u U.S. Congressional Budget Office (CBO)
u U.S. Department of Labor’s O*NET™
u Bureau of Labor Statistics (BLS)
u Other federal agencies and private sources
5–15
103
Before Recruiting new employees!
u Improving workflow process
u Training
u Applying new technology, new digital
solutions
u Outsourcing/Offshore
u Budget
5–16
104
Effective Recruiting
5–17
Employee Recruiting
Finding and/or attracting applicants for the employer’s open
positions.
Improving Recruitment Effectiveness:
• Recruiters
• Sources
• Branding
105
Measuring Recruiting Effectiveness
5–18
What to
measure
How to
measure
Evaluating Recruiting
Effectiveness
106
5–19
FIGURE 5–6 Recruiting Yield Pyramid
16% ● ● ● ● ● ●
75% ● ● ● ●
67% ● ● ●
50% ● ●
●
107
Candidate persona building
u Qualification requirements
u Trained vs. untrained candidates
u Being compatible with corporate culture
u Plus points: language competence, oversea experience, social
network, …
u Gather all information
u Demographics: gender, age, living places, current income level, marial
status
u Qualification: education level, skills, years of experiences, current position
u Goals & Interests: Career goals, hobbies
u Favorite channels: Websites, News sites, Tiktok, Facebook, Forum, Event,
Workshop,…
5–20
108
Chuyên viên Marketing
Source: Podcast Nhân Sự
5–21
109
Internal Sources of Candidates
5–22
u Foreknowledge of
candidates’ strengths
and weaknesses
u More accurate view of
candidate’s skills
u Candidates have a stronger
commitment
to the company
u Increases employee morale
u Less training and
orientation required
u Failed applicants become
discontented
u Time wasted interviewing
inside candidates who will
not be considered
u Inbreeding strengthens
tendency to maintain the
status quo
Advantages Disadvantages
110
Finding Internal Candidates
5–23
Posting open
job positions
Rehiring former
employees
Hiring-from-Within Tasks
Succession
planning (HRIS)
111
Outside Sources of Candidates
5–24
1
2
3
4
Advertising
Recruiting via the Internet
Employment Agencies
Offshoring/Outsourcing
5
6
7
8
On Demand Recruiting
Services (ODRS)
Executive Recruiters
College Recruiting
Referrals and Walk-ins
Locating Outside Candidates
112
Recruiting via the Internet
u Advantages
u Cost-effective way to publicize job openings
u More applicants attracted over a longer period
u Immediate applicant responses
u Online prescreening of applicants
u Links to other job search sites
u Automation of applicant tracking and evaluation
u Disadvantages
u Exclusion of older and minority workers
u Unqualified applicants overload the system
u Personal information privacy concerns of applicants
5–25
113
Advertising for Outside Candidates
u The Media Choice
u Selection of the best medium depends on the positions for which
the firm is recruiting.
u Newspapers: local and specific labor markets
u Trade and professional journals: specialized employees
u Internet job sites: global labor markets
u Constructing (Writing) Effective Ads
u Create attention, interest, desire, and action (AIDA).
u Create a positive impression (image) of the firm.
5–26
114
5–27
FIGURE 5–9 Help Wanted Ad that Draws Attention
115
Employment Agencies
5–28
Public
agencies
Private
agencies
Types of Employment
Agencies
Nonprofit
agencies
116
Why Use a Private Employment Agency?
u No HR department: firm lacks recruiting and screening
capabilities to attract a pool of qualified applicants.
u To fill a particular opening quickly.
u To attract more minority or female applicants.
u To reach currently employed individuals who are more
comfortable dealing with agencies than competing
companies.
u To reduce internal time devoted to recruiting.
5–29
117
Avoiding Problems with
Employment Agencies
u Give agency an accurate and complete job
description.
u Make sure tests, application blanks, and interviews are
part of the agency’s selection process.
u Review candidates accepted or rejected by your firm
or the agency for effectiveness and fairness of
agency’s screening process.
u Screen agency for effectiveness in filling positions.
u Supplement the agency’s reference checking by
checking the final candidate’s references yourself.
5–30
118
Offshoring and Outsourcing Jobs
5–31
Political and military
instability
Cultural
misunderstandings
Customers’ securing
and privacy
concerns
Foreign contracts,
liability, and legal
concerns
Special training of
foreign employees
Costs of foreign
workers
Resentment and
anxiety of U.S.
employees/unions
Outsourcing/
Offshoring
Issues
119
Executive Recruitment
u Executive Recruiters (Headhunters)
u Contingent-based recruiters
u Retained executive searchers
u Internet technology and specialization trends
u Guidelines for Choosing a Recruiter
1. Make sure the firm is capable of conducting a thorough search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Make sure the recruiter and you agree on what sort of person you
need for the position.
5. Never rely solely on the recruiter to do reference checking.
5–32
120
College Recruiting
u On-campus recruiting goals
u To determine if the candidate is
worthy of further consideration
u To attract good candidates
u On-site visits
u Invitation letters
u Assigned hosts
u Information packages
u Planned interviews
u Timely employment
offer
u Follow-up
u Internships
5–33
121
Employee Referrals and Walk-ins
u Employee Referrals
u Referring employees become stakeholders.
u Referral is a cost-effective recruitment program.
u Referral can speed up diversifying the workforce.
u Relying on referrals may be discriminatory.
u Walk-ins
u Seek employment through a personal direct approach to the
employer.
u Courteous treatment of any applicant is a good business practice.
5–34
122
Sources of Outside Applicants
5–35
Employee
referrals
Walk-ins Telecommuters
Other Sources of Outside Applicants
Military
personnel
123
Developing and Using Application Forms
5–36
Applicant’s
education and
experience
Applicant’s
prior progress
and growth
Applicant’s
employment
stability
Uses of Application Form
Information
Applicant’s
likelihood of
success
124
CHAPTER 6: EMPLOYEE TESTING
AND SELECTION
125
LEARNING OBJECTIVES
6-1. Answer the question: Why is it important to test and select
employees?
6-2. Explain Testing and Selection Process.
6-2. Explain what is meant by reliability and validity.
6-3. List and briefly describe the basic categories of selection tests, with
examples.
6-4. Explain how to use two work simulations for selection.
6-5. Describe four ways to improve an employer’s background checking
process.
126
WHY IS IT IMPORTANT TO TEST AND SELECT EMPLOYEES?
WHY EMPLOYEE SELECTION IS IMPORTANT
Nothing is more important than hiring the right employees.
The time to screen out undesirables is before they are in the door, not
after.
127
NEGLIGENT HIRING
Hiring workers with questionable
backgrounds without proper safeguards
128
PERSON AND JOB FIT
The main aim of employee selection is to achieve person-job fit.
129
PERSON- ORGANIZATION FIT
§A candidate might be “ right” for a job, but wrong
for the organization.
§Employers should care about person-organization
fit as well.
130
TESTING AND SELECTION PROCESS
Scanning
CV
Testing
Interview
Background
checking
Health
checking
Offering
jobs
131
EXPLAIN WHAT IS MEANT BY RELIABILITY AND
VALIDITY.
Reliability
– Describes the consistency of scores obtained by the same
person when retested with the identical or alternate forms
of the same test.
– Are test results stable over time?
132
EXPLAIN WHAT IS MEANT BY RELIABILITY AND
VALIDITY.
Test Validity
- Indicates whether a test is measuring what it is supposed
to be measuring.
- Does the test actually measure what it’s supposed to
measure?
133
TYPES OF TESTS
We can classify tests according to what they measure:
1. Cognitive (mental) abilities.
2. Motor and physical abilities.
3. Personality and interests
4. Achievement.
134
COGNITIVE (MENTAL) ABILITIES
(A) intelligence tests (IQ): general reasoning ability.
Tests for general intellectual abilities. They measure not a single
trait but rather a range of abilities, including memory, vocabulary,
verbal fluency, and numerical ability
(B) specific mental abilities ( specific cognitive abilities): like
inductive and deductive reasoning, verbal comprehension, and
numerical ability memory
135
EXAMPLE: TYPE OF QUESTION APPLICANT MIGHT
EXPECT ON A TEST OF MECHANICAL COMPREHENSION
136
IQ TEST (LOGICAL REASONING TEST)
137
NUMERICAL REASONING TEST
138
VERBAL REASONING TEST
139
MOTOR AND PHYSICAL ABILITIES
Motor abilities such as:
§finger dexterity.
§manual dexterity.
§reaction time ( if you hiring
pilots).
Physical abilities include
§static strength ( such as lifting
weights).
§dynamic strength ( like pull-
ups).
§body coordination ( as in
jumping rope).
§stamina
140
MEASURING PERSONALITY AND INTERESTS
§A person’s cognitive and physical abilities alone seldom explain his
or her job performance.
§Other factors, like motivation and interpersonal skills, are very
important.
§“ most people are hired based on qualification, but are fired for non
performance”
§Nonperformance “ is usually the result of personal characteristics,
such as attitude, motivation, and especially, temperament.
141
WHAT DO PERSONALITY TESTS MEASURE?
The “Big Five” : the big five personality dimension: extraversion,
emotional stability/ neuroticism, agreeableness, conscientiousness,
and openness to experience
142
WHAT DO PERSONALITY TESTS MEASURE?
§Some personality tests are projective. The psychologist
presents an ambiguous stimulus (like an inkblot or clouded
picture), and the person reacts.
§Other personality tests are self-reported: applicants fill
them out.
§Myers-Briggs Type Indicator (MBTI)
§DISC
143
ACHIEVEMENT
Achievement tests measure what someone has learned.
Most of the tests you take in school are achievement tests.
They measure your “job knowledge” in areas like
economics, marketing, or human resources.
144
IQ + EQ = SUCCESS
Emotional Intelligence Test
§EQ reflects a person's ability to empathize with others’
identify, evaluate, control and express emotions ones own
emotions;
§perceive, and assess others' emotions;
§use emotions to facilitate thinking, understand emotional
meanings.
145
WORK SAMPLES AND SIMULATIONS
1. Work samples: actual job tasks used in testing applicant’s
performance (measuring performance directly )
2. Situational judgment tests:
Are personnel tests “ designed to asses applicant’s judgment
regarding a situation encountered in the workplace”.
3. Management assessment centers: is two to three days
simulation in which 10 to 12 candidates perform realistic tasks (
like making presentations) in hypothetical situation and are scored
on their performance. It involves testing and the use of
management games 146
SITUATIONAL TESTING AND VIDEO-BASED
SITUATIONAL TESTING
1. Situational test: a test that requires examinees to
respond to situations representative of the job
2. Video-based simulation: a situational test in which
examinees respond to video simulation of realistic job
situations
147
WHY PERFORM BACKGROUND INVESTIGATION AND
REFERENCE CHECKS?
To verify factual information provided by applicants
To uncover damaging information such as criminal
records
To avoid hiring mistakes
148
BACKGROUND INVESTIGATION AND REFERENCE
CHECKS
149
OTHER SELECTION METHODS
150
GARY DESSLER
HUMAN RESOURCE MANAGEMENT
Chapter 7
Interviewing
Candidates
151
7–2
1. List the main types of selection interviews.
2. List and explain main errors that can undermine an
interview’s usefulness.
3. Define a structured situational interview.
4. Explain and illustrate each guideline for being a more
effective interviewer.
5. Give several examples of situational questions,
behavioral questions, and background questions that
provide structure.
6. List the steps in a streamlined interview process.
7. List guidelines for interviewees.
LEARNING OUTCOMES
152
7–3
Basic Types of Interviews
Selection Interview
Appraisal Interview
Exit Interview
Types of
Interviews
153
7–4
Selection Interview Formats
Unstructured
(nondirective)
interview
Structured
(directive)
interview
Interview Structure
Formats
154
7–5
FIGURE 7–1 Officer Programs Applicant Interview Form
155
7–6
Interview Content
Situational
interview
Behavioral
interview
Job-related
interview
Types of Questions Asked
Stress
interview
156
7–7
Administering the Interview
Unstructured
sequential interview
Panel
interview
Phone
interviews
Video/Web-assisted
interviews
Computerized
interviews
Mass
interview
Structured
sequential interview
Ways in
Which
Interview Can
be Conducted
157
7–8
Three Ways to Make the Interview Useful
Structure the interview to
increase its validity
Carefully choose what sorts of
traits are to be assessed
Beware of committing
interviewing errors
Making the
Interview Useful
158
7–9
What Can Undermine An Interview’s Usefulness?
Nonverbal behavior
and impression
management
Applicant’s personal
characteristics
Interviewer’s
inadvertent behavior
Factors Affecting
An Interview’s
Usefulness
First impressions (snap
judgments)
Interviewer’s
misunderstanding
of the job
Candidate-order
(contrast) error and
pressure to hire
159
7–10
How to Design and Conduct
An Effective Interview
• The Structured Situational Interview
Ø Use either situational questions or behavioral questions that
yield high criteria-related validities.
Step 1: Analyze the job.
Step 2: Rate the job’s main duties.
Step 3: Create interview questions.
Step 4: Create benchmark answers.
Step 5: Appoint the interview panel and conduct
interviews.
160
Processing an Interview
1. Greeting
2. The interviewers introduce themselves and the
companies
3. The interviewers ask the interviewees to clarify some
information in the candidates’ profiles
4. The interviewers ask questions to assess the
candidates’ competencies and appropriateness
5. The candidates pose questions to the interviewers
6. Closing the interview
7–11
161
7–12
How to Conduct a More Effective Interview
1
2
3
4
5
Being Systematic and Effective
Structure the interview.
Know the job.
Get organized.
Establish rapport.
Ask questions.
6 Take brief, unobtrusive notes.
7 Close the interview.
8 Review the interview.
162
7–13
Creating Effective Interview Structures
• Base questions on actual job duties.
• Use job knowledge, situational or behavioral
questions, and objective criteria to evaluate
interviewee’s responses.
• Use the same questions with all candidates.
• Use descriptive rating scales (excellent, fair,
poor) to rate answers.
• If possible, use a standardized interview form.
163
7–14
FIGURE 7–2 Examples of Questions That Provide Structure
Situational Questions
1. Suppose a more experienced coworker was not following standard work procedures and
claimed the new procedure was better. Would you use the new procedure?
2. Suppose you were giving a sales presentation and a difficult technical question arose that
you could not answer. What would you do?
Past Behavior Questions
3. Based on your past work experience, what is the most significant action you have ever taken
to help out a coworker?
4. Can you provide an example of a specific instance where you developed a sales
presentation that was highly effective?
Background Questions
5. What work experiences, training, or other qualifications do you have for working in a
teamwork environment?
6. What experience have you had with direct point-of-purchase sales?
Job Knowledge Questions
7. What steps would you follow to conduct a brainstorming session with a group of employees
on safety?
8. What factors should you consider when developing a television advertising campaign?
164
7–15
FIGURE 7–3 Suggested Supplementary Questions for Interviewing Applicants
1. How did you choose this line of work?
2. What did you enjoy most about your last job?
3. What did you like least about your last job?
4. What has been your greatest frustration or disappointment on your present job? Why?
5. What are some of the pluses and minuses of your last job?
6. What were the circumstances surrounding your leaving your last job?
7. Did you give notice?
8. Why should we be hiring you?
9. What do you expect from this employer?
10. What are three things you will not do in your next job?
11. What would your last supervisor say your three weaknesses are?
12. What are your major strengths?
13. How can your supervisor best help you obtain your goals?
14. How did your supervisor rate your job performance?
15. In what ways would you change your last supervisor?
16. What are your career goals during the next 1–3 years? 5–10 years?
17. How will working for this company help you reach those goals?
18. What did you do the last time you received instructions with which you disagreed?
19. What are some things about which you and your supervisor disagreed? What did you do?
20. Which do you prefer, working alone or working with groups?
21. What motivated you to do better at your last job?
22. Do you consider your progress in that job representative of your ability? Why?
23. Do you have any questions about the duties of the job for which you have applied?
24. Can you perform the essential functions of the job for which you have applied?
165
7–16
FIGURE 7–4
Interview Evaluation
Form
166
7–17
Guidelines for Interviewees
• Preparation is essential.
• Uncover the interviewer’s real needs.
• Relate yourself to the interviewer’s needs.
• Think before answering.
• Remember that appearance and enthusiasm are
important.
• Make a good first impression.
• Ask questions.
167
7–18
FIGURE 7–5 Interview Questions to Ask
1. What is the first problem that needs the attention of the person you hire?
2. What other problems need attention now?
3. What has been done about any of these to date?
4. How has this job been performed in the past?
5. Why is it now vacant?
6. Do you have a written job description for this position?
7. What are its major responsibilities?
8. What authority would I have? How would you define its scope?
9. What are the company’s five-year sales and profit projections?
10. What needs to be done to reach these projections?
11. What are the company’s major strengths and weaknesses?
12. What are its strengths and weaknesses in production?
13. What are its strengths and weaknesses in its products or its competitive position?
14. Whom do you identify as your major competitors?
15. What are their strengths and weaknesses?
16. How do you view the future for your industry?
17. Do you have any plans for new products or acquisitions?
18. Might this company be sold or acquired?
19. What is the company’s current financial strength?
20. What can you tell me about the individual to whom I would report?
21. What can you tell me about other persons in key positions?
22. What can you tell me about the subordinates I would have?
23. How would you define your management philosophy?
24. Are employees afforded an opportunity for continuing education?
25. What are you looking for in the person who will fill this job?
168
7–19
K E Y T E R M S
unstructured (or nondirective) interview
structured (or directive) interview
situational interview
behavioral interview
job-related interview
stress interview
unstructured sequential interview
structured sequential interview
panel interview
mass interview
candidate-order error (or contrast) error
structured situational interview
169
7–20
FIGURE 7–A1
Structured Interview
Guide
170
7–21
FIGURE 7–A1
Structured Interview
Guide (cont’d)
171
7–22
FIGURE 7–A1
Structured Interview
Guide (cont’d)
172
GARY DESSLER
HUMAN RESOURCE MANAGEMENT
Chapter 8
Training and Developing
Employees
173
8–2
1. Summarize the purpose and process
of employee orientation.
2. List and briefly explain each of the four steps in the
training process.
3. Explain how to use five training techniques.
4. List and briefly discuss four management development
programs.
5. List and briefly discuss the importance of the eight steps
in leading organizational change.
6. Answer the question, “What is organizational
development and how does it differ from traditional
approaches to organizational change?”
LEARNING OUTCOMES
174
8–3
Purpose of Orientation
Feel welcome
and at ease
Begin the
socialization
process
Understand the
organization
Know what is
expected in
work and
behavior
Orientation Helps New
Employees
175
8–4
The Orientation Process
Company organization
and operations
Safety measures
and regulations
Facilities
tour
Employee
Orientation
Employee benefit
information
Personnel
policies
Daily
routine
176
8–5
FIGURE 8–1
New Employee
Departmental
Orientation Checklist
177
8–6
The Training Process
• Training
Ø Is the process of teaching new employees
the basic skills they need to perform their jobs
Ø Reduces an employer’s exposure to negligent
training liability
• Training’s Strategic Context
Ø The aims of firm’s training programs must make
sense in terms of the company’s strategic goals.
Ø Training fosters employee learning, which
results in enhanced organizational performance.
178
Benefits of Training and Developing
• Staff Quality
• Advances in Technology
• Comparative advantages
• Personal development needs
8–7
179
8–8
Steps in the Training Process
1
2
3
4
The Four-Step Training Process
Instructional design
Needs analysis
Program implementation
Evaluation
180
8–9
Analyzing Training Needs
Task Analysis:
Assessing new employees’
training needs
Performance Analysis:
Assessing current employees’
training needs
Training Needs
Analysis
181
8–10
TABLE 8–1 Sample Task Analysis Record Form
182
8–11
Performance Analysis:
Assessing Current Employees’ Training Needs
Performance Appraisals
Job-Related Performance
Data
Observations
Interviews
Assessment Center
Results
Individual Diaries
Attitude Surveys
Tests
Methods
for Identifying
Training Needs
Specialized Software
Can’t-do or Won’t-do?
183
Designing the Training & Developing
program
•Objectives
•Participants
•Content
•Method
•Instructors
•Venues, Time
•Cost
8–12
184
8–13
Evaluating the Training Effort
• Designing the Evaluation Study
Ø Time series design
Ø Controlled experimentation
• Choosing Which Training Effects to Measure
Ø Reaction of trainees to the program
Ø Learning that actually took place
Ø Behavior that changed on the job
Ø Results achieved as a result of the training
185
8–14
FIGURE 8–7 Using a Time Series Graph to Assess a Training Program’s Effects
186
8–15
FIGURE 8–8
A Sample Training
Evaluation Form
187
8–16
Training Methods
• On-the-Job Training
• Apprenticeship Training
• Informal Learning
• Job Instruction Training
• Lectures
• Programmed Learning
• Audiovisual-Based Training
• Vestibule Training
• Teletraining and
Videoconferencing
• Electronic Performance
Support Systems (EPSS)
• Computer-Based Training
(CBT)
• Simulated Learning
• Internet-Based Training
• Learning Portals
188
8–17
The OJT Training Method
• On-the-Job Training (OJT)
Ø Having a person learn a job
by actually doing the job.
• Types of On-the-Job Training
Ø Coaching or understudy
Ø Job rotation
Ø Special assignments
• Advantages
Ø Inexpensive
Ø Learn by doing
Ø Immediate feedback
189
8–18
On-the-Job Training
1
Follow up
Present the operation
Steps to Help Ensure OJT Success
Prepare the learner
Do a tryout
2
3
4
190
8–19
FIGURE 8–3 Some Popular Apprenticeships
The U.S. Department of Labor’s Registered Apprenticeship program
offers access to 1,000 career areas, including the following top
occupations:
• Able seaman
• Carpenter
• Chef
• Child care development specialist
• Construction craft laborer
• Dental assistant
• Electrician
• Elevator constructor
• Fire medic
• Law enforcement agent
• Over-the-road truck driver
• Pipefitter
191
8–20
FIGURE 8–4 Job Instruction Training at UPS
192
8–21
Programmed Learning
• Advantages
Ø Reduced training time
Ø Self-paced learning
Ø Immediate feedback
Ø Reduced risk of error for learner
Presenting
questions, facts,
or problems to
the learner
Allowing the
person to
respond
Providing
feedback on
the accuracy
of answers
193
8–22
Intelligent Tutoring Systems
• Advantages
Ø Reduced learning time
Ø Cost effectiveness
Ø Instructional consistency
• Types of Programmed Learning
Ø Interactive multimedia training
Ø Virtual reality training
Ø Virtual classroom
194
8–23
TABLE 8–2 Names of Various Computer-Based Training Techniques
PI Computer-based programmed instruction
CBT Computer-based training
CMI Computer-managed instruction
ICAI Intelligent computer-assisted instruction
ITS Intelligent tutoring systems
Simulation Computer simulation
Virtual Reality Advanced form of computer simulation
195
8–24
Internet-Based Training
Teletraining and Videoconferencing
Electronic Performance Support
Systems (EPSS)
Computer-Based Training
E-learning and learning portals
Distance
Learning
Methods
196
8–25
FIGURE 8–5 Partial List of E-Learning Vendors
197
8–26
Lifelong Learning and
Literacy Training Techniques
Provide employees with
lifelong educational and
learning opportunities
Instituting basic skills
and literacy programs
Employer Responses to
Employee Learning Needs
198
8–27
Implementing Management
Development Programs
Assessing the
company’s strategic
needs
Developing the
managers and
future managers
Long-Term Focus of
Management Development
Appraising
managers’ current
performance
199
8–28
Succession Planning
1
Begin management development
Review firm’s management skills inventory
Steps in the Succession Planning Process
Anticipate management needs
Create replacement charts
2
3
4
200
8–29
Management Development Techniques
Job
rotation
Coaching and
understudy
Managerial On-the-Job Training
Action
learning
201
8–30
Managing Organizational
Change Programs
Strategy Technologies
Culture
What to Change
Structure Employees
202
8–31
Managing Organizational Change
and Development
Overcoming
resistance to
change
Effectively using
organizational
development
practices
The Human Resource
Manager’s Role
Organizing
and leading
organizational
change
203
8–32
Managing Organizational Change
and Development (cont’d)
1
Moving
Overcoming Resistance to Change:
Lewin’s Change Process
Unfreezing
Refreezing
2
3
204
8–33
How to Lead the Change
• Unfreezing Stage
1. Establish a sense of urgency (need for change).
2. Mobilize commitment to solving problems.
• Moving Stage
3. Create a guiding coalition.
4. Develop and communicate a shared vision.
5. Help employees to make the change.
6. Consolidate gains and produce more change.
• Refreezing Stage
7. Reinforce new ways of doing things.
8. Monitor and assess progress.
205
8–34
K E Y T E R M S
employee orientation
training
negligent training
task analysis
competency model
performance analysis
on-the-job training (OJT)
apprenticeship training
job instruction training (JIT)
programmed learning
electronic performance support
systems (EPSS)
job aid
virtual classroom
lifelong learning
management development
job rotation
action learning
case study method
management game
role playing
behavior modeling
in-house development center
executive coach
organizational development
controlled experimentation
206
GARY DESSLER
HUMAN RESOURCE MANAGEMENT
Chapter 9
Performance
Management and
Appraisal
207
9–2
1. Define performance management and discuss how it
differs from performance appraisal.
2. Set effective performance appraisal standards.
3. Describe the appraisal process.
4. Develop, evaluate, and administer at least four
performance appraisal tools.
5. Explain and illustrate the problems to avoid in
appraising performance.
LEARNING OUTCOMES
208
9–3
An Introduction to Appraising Performance
1
Is useful in career planning.
Creates motivation at work
Why Appraise Performance?
Is basis for pay and promotion decisions.
Helps in correcting deficiencies and reinforcing good
performance
2
3
4
5
Helps identifying needs for training and
developing employees
209
What is Performance Appraisal
• Setting work standards, tracking and
assessing performance, and providing
feedback to employees to motivate,
correct, and continue their performance.
• Performance appraisal means evaluating
an employee’s current and/or past
performance relative to his or her
performance standards.
9–4
210
When Performance Appraisal?
•Tracking and assessing performance
need to be implemented in a
continuous manner
•Analyzing, summarizing and
informing the results should be done
regularly (monthly, yearly)
9–5
211
9–6
Who Should Do the Appraising?
Self-rating
Subordinates
360-degree
feedback
Potential
Appraisers
Immediate
supervisor
Peers
Rating
committee
212
9–7
Steps in Appraising Performance
1
Choosing Appraising methods
Steps in Appraising Performance
Defining the job and performance criteria
Choosing and training
appraisers
2
3
4
5
Appraising performance
Providing feedback session
213
9–8
(Un)Realistic Appraisals
• Motivations for Soft Appraisals
Ø The fear of having to hire and train someone new.
Ø The unpleasant reaction of the appraisee.
Ø An appraisal process that’s not conducive to candor.
• Hazards of Soft Appraisals
Ø Employee loses the chance to improve before being discharged
or forced to change jobs.
Ø Lawsuits arising from dismissals involving inaccurate
performance appraisals.
214
9–9
Performance Appraisal Roles
• The Supervisor’s Role
Ø Usually do the actual appraising
Ø Must be familiar with basic
appraisal techniques
Ø Must understand and avoid
problems that can cripple
appraisals
Ø Must know how to conduct
appraisals fairly
215
9–10
Performance Appraisal Roles (cont’d)
• The HR Department’s Role
Ø Serves a policy-making and advisory role.
Ø Provides advice and assistance regarding the appraisal
tool to use.
Ø Trains supervisors to improve their appraisal skills.
Ø Monitors the appraisal system effectiveness and
compliance with EEO laws.
216
9–11
Designing the Appraisal Tool
• What to Measure?
Ø Work output (quality and quantity)
Ø Personal competencies
Ø Goal (objective) achievement
217
9–12
Performance Appraisal Methods
1
2
3
4
5
Alternation ranking
Graphic rating scale
Paired comparison
Forced distribution
Critical incident
6
7
8
9
10
Behaviorally anchored rating
scales (BARS)
Narrative forms
Management by objectives (MBO)
Computerized and Web-based
performance appraisal
Merged methods
Appraisal Methodologies
218
9–13
FIGURE 9–2
Sample Graphic
Rating Performance
Rating Form
219
9–14
FIGURE 9–3 One Item from an Appraisal Form Assessing Employee
Performance on Specific Job-Related Duties
220
9–15
FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives
221
9–16
FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives (cont’d)
222
9–17
FIGURE 9–5 Scale for Alternate Ranking of Appraisee
223
9–18
FIGURE 9–6 Ranking Employees by the Paired Comparison Method
Note: + means “better than.” - means “worse than.” For each chart, add up
the number of +’s in each column to get the highest ranked employee.
224
9–19
TABLE 9–1 Examples of Critical Incidents for Assistant Plant Manager
Continuing Duties Targets Critical Incidents
Schedule production
for plant
90% utilization of
personnel and machinery
in plant; orders delivered
on time
Instituted new production
scheduling system; decreased
late orders by 10% last month;
increased machine utilization in
plant by 20% last month
Supervise procurement
of raw materials and
on inventory control
Minimize inventory costs
while keeping adequate
supplies on hand
Let inventory storage costs rise
15% last month; over-ordered
parts “A” and “B” by 20%; under-
ordered part “C” by 30%
Supervise machinery
maintenance
No shutdowns due
to faulty machinery
Instituted new preventative
maintenance system for plant;
prevented a machine breakdown
by discovering faulty part
225
9–20
FIGURE 9–7
Appraisal-Coaching
Worksheet
226
9–21
Behaviorally Anchored Rating Scale (BARS)
Developing a BARS
1. Write critical incidents
2. Develop performance
dimensions
3. Reallocate incidents
4. Scale the incidents
5. Develop a final
instrument
Advantages of BARS
Ø A more accurate gauge
Ø Clearer standards
Ø Feedback
Ø Independent dimensions
Ø Consistency
227
9–22
FIGURE 9–8
Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship Skills
228
9–23
Management by Objectives (MBO)
• A comprehensive and formal organizationwide
goal-setting and appraisal program requiring:
1. Setting of organization’s goals
2. Setting of departmental goals
3. Discussion of departmental goals
4. Defining expected results (setting individual goals)
5. Conducting periodic performance reviews
6. Providing performance feedback
229
9–24
Using MBO
Setting unclear
objective
Conflict with
subordinates over
objectives
Potential Problems with MBO
Time-consuming
appraisal process
230
9–25
Computerized and Web-Based
Performance Appraisal Systems
• Allow managers to keep notes on subordinates.
• Notes can be merged with employee ratings.
• Software generates written text to support appraisals.
• Allows for employee self-monitoring and self-evaluation.
• Electronic Performance Monitoring (EPM) Systems
Ø Use computer network technology to allow managers access to
their employees’ computers and telephones.
Ø Managers can monitor the employees’ rate, accuracy, and time
spent working online.
231
9–26
FIGURE 9–9
Online Performance
Appraisal Tool
232
KPI
• A performance indicator or key
performance indicator (KPI) is a type
of performance measurement.
• KPIs evaluate the success of an
organization or of a particular activity
• KPIs provide a focus for strategic and
operational improvement, create an
analytical basis for decision making and
help focus attention on what matters most.
9–27
233
9–28
Dealing with Performance
Appraisal Problems
Unclear
standards
Leniency or
strictness
Halo
effect
Potential Rating Scale
Appraisal Problems
Central
tendency
Bias
234
9–29
TABLE 9–2 A Graphic Rating Scale with Unclear Standards
235
9–30
Guidelines for Effective Appraisals
Know the
problems
Get
agreement on
a plan
Use the
right tool
How to Avoid
Appraisal Problems
Keep a
diary
Be
fair
236
9–31
TABLE 9–3 Important Advantages and Disadvantages of Appraisal Tools
Tool Advantages Disadvantages
Graphic rating scale Simple to use; provides a quantitative
rating for each employee.
Standards may be unclear; halo
effect, central tendency, leniency,
bias can also be problems.
BARS Provides behavioral “anchors.” BARS
is very accurate.
Difficult to develop.
Alternation ranking Simple to use (but not as simple as
graphic rating scales). Avoids central
tendency and other problems of rating
scales.
Can cause disagreements among
employees and may be unfair if all
employees are, in fact, excellent.
Forced distribution
method
End up with a predetermined number
or % of people in each group.
Employees’ appraisal results
depend on your choice of cutoff
points.
Critical incident
method
Helps specify what is “right” and
“wrong” about the employee’s
performance; forces supervisor to
evaluate subordinates on an ongoing
basis.
Difficult to rate or rank employees
relative to one another.
MBO Tied to jointly agreed-upon
performance objectives.
Time-consuming.
237
9–32
Choosing the Right Appraisal Tool
Accessibility Accuracy
Ease-of-use
Employee
acceptance
Criteria for Choosing an
Appraisal Tool
238
9–33
FIGURE 9–10 Selected Best Practices for Administering Fair Performance Appraisals
• Base the performance review on duties and standards from a job analysis.
• Try to base the performance review on observable job behaviors or objective
performance data.
• Make it clear ahead of time what your performance expectations are.
• Use a standardized performance review procedure for all employees.
• Make sure whoever conducts the reviews has frequent opportunities to observe
the employee’s job performance.
• Either use multiple raters or have the rater’s supervisor evaluate the appraisal
results.
• Include an appeals mechanism.
• Document the appraisal review process and results.
• Discuss the appraisal results with the employee.
• Let the employees know ahead of time how you’re going to conduct the review and
use the results.
• Let the employee provide input regarding your assessment of him or her.
• Indicate what the employee needs to do to improve.
• Thoroughly train the supervisors who will be doing the appraisals.
239
9–34
FIGURE 9–11 Guidelines for a Legally Defensible Appraisal
1. Preferably, conduct a job analysis to establish performance criteria and standards.
2. Communicate performance standards to employees and to those rating them, in writing.
3. When using graphic rating scales, avoid undefined abstract trait names (such as “loyalty” or
“honesty”).
4. Use subjective narratives as only one component of the appraisal.
5. Train supervisors to use the rating instrument properly.
6. Allow appraisers substantial daily contact with the employees they’re evaluating.
7. Using a single overall rating of performance is usually not acceptable to the courts.
8. When possible, have more than one appraiser, and conduct all such appraisals
independently.
9. One appraiser should never have absolute authority to determine a personnel action.
10. Give employees the opportunity to review and make comments, and have a formal appeals
process.
11. Document everything: Without exception, courts condemn informal performance evaluation
practices that eschew documentation.
12. Where appropriate, provide corrective guidance to assist poor performers in improving.
240
Appraisal Problems
• Employees’s fears of:
- Unfair appraisal
- Appraisers’ lack of information
- Appraisers’ lack of appraising skills
- Salary/bonus/incentives cut
- Unclear standards
9–35
241
Appraisal Problems
• Appraisers’ fears of:
- Waiting time, complicate process
- Judgment position
- Personal relationship
- Some criteria are difficult to measure
9–36
242
Appraisal Problems
• Unclear standards
• Appraisers assess based on the most
recent event
• Too soft or rigorous appraisal
• Appraisers’ bias
9–37
243
9–38
Defining the Employee’s Goals
and Work Standards
Set
SMART
goals
Assign
challenging/
doable goals
Assign
specific
goals
Guidelines for Effective
Goal Setting
Assign
measurable
goals
Encourage
participation
244
9–39
Setting SMART Goals
• Specific, and clearly state the desired results.
• Measurable in answering “how much.”
• Attainable, and not too tough or too easy.
• Relevant to what’s to be achieved.
• Timely in reflecting deadlines and milestones.
245
9–40
Handling Defensive Responses
1
Recognize your own limitations.
Never attack a person’s defenses.
How to Handle a Defensive Subordinate
Recognize that defensive behavior is normal.
Postpone action.
2
3
4
246
9–41
How to Deliver Criticism
1
2
3
4
5
How to Criticize a Subordinate
Criticize in private, and do it constructively.
Do it in a manner that lets the person maintain
his or her dignity and sense of worth.
Give daily feedback so that the review has no
surprises.
Never say the person is “always” wrong.
Criticism should be objective and free of biases.
247
9–42
Formal Written Warnings
• Purposes of a Written Warning
Ø To shake your employee out of bad habits.
Ø To help you defend your rating, both to your own boss and (if
needed) to the courts.
• A Written Warning Should:
Ø Identify standards by which employee is judged.
Ø Make clear that employee was aware of the standard.
Ø Specify deficiencies relative to the standard.
Ø Indicate employee’s prior opportunity for correction.
248
9–43
Performance Management
• Performance Management
Ø Is the continuous process of identifying, measuring, and
developing the performance of individuals and teams and
aligning their performance with the organization’s goals.
• How Performance Management Differs From
Performance Appraisal
Ø A continuous process for continuous improvement
Ø A strong linkage of individual and team goals to strategic goals
Ø A constant reevaluation and modification of work processes
249
9–44
Basic Concepts in Performance
Management and Appraisal
Performance Appraisal
Setting work
standards, assessing
performance, and
providing feedback to
employees to
motivate, correct, and
continue their
performance.
Performance
Management
An integrated
approach to ensuring
that an employee’s
performance supports
and contributes to the
organization’s
strategic aims.
250
PM Process Identiffying
objectives
(goals)
Motivating,
training,
monitoring
Performance
appraisal
Recognizing,
rewarding
Planning for
personal/
organizational
development
9–45
251
9–46
Basic Building Blocks of
Performance Management
Direction sharing
Goal
alignment
Ongoing
performance
monitoring
Rewards,
recognition, and
compensation
Coaching and
development
support
Ongoing
feedback
252
9–47
Why Performance Management?
Total Quality Management
Resolution of Appraisal Issues
Strategic Goal Alignment
The
Performance
Management
Approach
253
9–48
Using Information Technology to
Support Performance Management
• Assign financial and nonfinancial goals to each team’s
activities along the strategy map chain of activities
leading up to the company’s overall strategic goals.
• Inform all employees of their goals.
• Use IT-supported tools like scorecard software and
digital dashboards to continuously monitor and assess
each team’s and employee’s performance.
• Take corrective action at once.
254
9–49
FIGURE 9–14 Performance Management Report
255
9–50
K E Y T E R M S
performance appraisal
graphic rating scale
alternation ranking method
paired comparison method
forced distribution method
critical incident method
behaviorally anchored rating scale (BARS)
electronic performance monitoring (EPM)
unclear standards
halo effect
central tendency
strictness/leniency
bias
appraisal interview
performance management
256
Human Resource Management
Fifteenth Edition
Chapter 11
Establishing
Strategic Pay
Plans
257
Learning Objectives (1 of 2)
11-1. List the basic factors determining pay rates.
11-2. Define and give an example of how to
conduct a job evaluation.
11-3. Explain in detail how to establish a market-
competitive pay plan.
258
Learning Objectives (2 of 2)
11-4. Explain how to price managerial and
professional jobs.
11-5. Explain the difference between competency-
based and traditional pay.
11-6. Describe the importance of total rewards for
improving employee engagement
259
Total reward
• Best working environment voted by employees:
- Compensation & Benefit
- Working condition
- Corporate cultures
- Promotion opportunity
• C&B (Compensation & Benefit) => Total Reward
• Total reward: Strategy => attract and retain talents
- Monetary rewards (lương thưởng bằng hiện kim)
- Non- monetary rewards (lương thưởng phi hiện kim)
260
5 components of Total rewards
1. Compensation: Lương
- Wage vs. Salary
- Incentives vs. Bonus
- A nominal wage, also called a money wage, is
the money you're paid by an employer for your
labor. A nominal wage is not adjusted for inflation.
- A real wage is a wage adjusted for inflation.
- If your nominal wage increases slower than the
rate of inflation, then your purchasing power will
_______. 261
Compensation: Lương
- Minimum wages have been defined as the
minimum amount of remuneration that an
employer is required to pay wage earners for the
work performed during a given period, which
cannot be reduced by collective agreement or an
individual contract.
262
Vietnam minimum wage
263
Lương cơ bản (Basic rate)
• Lương cơ bản là thuật ngữ được dùng để mô tả mức lương thấp nhất mà
người lao động nhận được khi làm việc tại một vị trí nào đó, phụ thuộc vào
trình độ, yêu cầu năng lực của người lao động.
• Ngoài ra, lương cơ bản sẽ không bao gồm các khoản tiền phụ cấp, hỗ trợ của
người sử dụng lao động dành cho người lao động.
• Đối với cán bộ, công chức, viên chức: Lương cơ bản của cán bộ, công chức,
viên chức chính là tích của lương cơ sở và hệ số lương theo công thức sau:
• Lương cơ bản = lương cơ sở x hệ số lương
• Theo đó, mức lương cơ sở hiện nay của cán bộ, công chức, viên chức là
1.490.000 đồng mỗi tháng.
• Hệ số lương của cán bộ, công chức, viên chức được thực hiện theo quy định
tại Nghị định 204/2004/NĐ-CP.
264
Lương cơ bản
• Đối với người lao động làm việc theo hợp đồng lao động cho các
doanh nghiệp, cá nhân:
• Lương cơ bản của người lao động làm việc cho doanh nghiệp, cá
nhân sẽ là mức lương được thỏa thuận trong hợp đồng lao
động, chưa bao gồm phụ cấp, các khoản chi phí hỗ trợ.
• Theo đó thì lương cơ bản của người lao động sẽ được các bên
thỏa thuận nhưng không được thấp hơn mức lương tối thiểu
vùng.
• Tuy nhiên, chúng ta cần phải phân biệt được lương cơ bản
không phải là lương tối thiểu vùng.
265
Phụ cấp (Allowance)
266
5 components of Total rewards
2. Benefits: Phúc lợi
- Social security: Bảo hiểm xã hội
- Health insurance: Bảo hiểm y tế
- Unemployment insurance: Bảo hiểm thất nghiệp
- Worker’s compensation insurance: bảo hiểm tai nạn lao
động
- Disability insurance: bảo hiểm khuyết tật
- Others: dental insurance, retirement plans (quỹ hưu trí),
vacation packages (du lịch nghỉ dưỡng),
- Unlimited paid time off: nghỉ phép vẫn được trả lương
không giới hạn
267
Benefits: Phúc lợi
• 13th month salary
• Monetary rewards paid on special holidays/
occasions
=> Incentive/Bonus vs. Benefits
268
5 components of Total rewards
3. Work – life balance (Wellness) (Cân bằng giữa công
việc và đời sống)
- Flexible schedule: lịch làm việc linh hoạt
- Gym membership, Yoga, babysister, Finance consultation,
Nutrition consultation, Family & marriage consultation
4. Recognition: Sự công nhận
- PM
- Best Employee /Team/ Department Award
- Daily activities, communication
269
5 components of Total rewards
5. Development: Phát triển sự nghiệp
- Student loans: giúp trả nợ đại học
- Tuition fee coverage: đài thọ học phí
- Training/ Couching programs, conferences,…
270
5 components of Total rewards
• Google:
• Nếu nhân viên GG qua đời, vợ/chồng nhận được 1 khoan
bằng 50% lương của ng đã mất trong vòng 10 năm
• Baird:
• Hàng năm đều tặng cổ phần cho nhân viên: từ lao công,
tạp vụ => profit sharing
• Zappos
• Phát cho mỗi ng $50 để tặng cho một nhân viên đã giúp
đỡ họ
271
Basic Factors in Determining Pay
Rates
Employee compensation includes all
forms of pay going to employees and
arising from their employment.
1. Direct: wages, salaries, incentives,
commissions, and bonuses
2. Indirect: financial benefits like employer-paid
insurance and vacations
272
Aligning Total Rewards with Strategy
• Aligned Reward Strategy - is creating a
compensation package that produces the
employee behaviors the firm needs to achieve
its competitive strategy.
• Put another way, the rewards should provide a
clear pathway between each reward and
specific business goals.
273
Equity and its Impact on Pay Rates (1 of 2)
• Equity Theory of Motivation - is once a person
perceives an inequity a tension or drive will
develop that motivates him or her to reduce the
tension and perceived inequity.
• Thuyết công bằng : con người luôn muốn được
đối xử công bằng. Nhân viên có xu hướng đánh
giá sự công bằng bằng cách so sánh công sức họ
bỏ ra so với những thứ họ nhận được cũng như
so sánh tỉ lệ đó của họ với tỉ lệ của những đồng
nghiệp trong công ty.
274
Equity and its Impact on Pay Rates (2 of 2)
Type of Equity
1. External
2. Internal
3. Individual
275
Equity and its Impact on Pay Rates
• External equity - refers to how a job’s pay rate in one
company compares to the job’s pay rate in other
companies.
• Internal equity - refers to how fair the job’s pay rate is
when compared to other jobs within the same company
(for instance, is the sales manager’s pay fair, when
compared to what the production manager earns?).
• Individual equity - refers to the fairness of an individual’s
pay as compared with what his or her coworkers are
earning for the same or very similar jobs within the
company, based on each person’s performance.
276
Equity and its Impact on Pay Rates
COMPETITIVE SALARY?
LAW & REGULATIONS?
277
Pay Polices
• Seniority-based
• Performance
• Other pay policies
• Geography
278
Pay Polices
• Compare to the market / others’ pay: The same?
Higher? Lower?
• Compensation structure (Bội số lương, Hệ số
lương, Tỷ lệ lương – thưởng – phúc lợi)
• Pay regulations (quy chế trả lương, quy chế
thưởng/phạt, quy chế trả phụ cấp, phúc lợi,…)
279
Improving Performance: The
Strategic Context
Wegmans Food Markets
Let’s talk about it…
280
Improving Performance: HR Practices
Around The Globe (1 of 2)
Compensating Expatriate Employees
Let’s talk about it…
281
Job Evaluation Methods
• Market-Base
• Job Evaluation (định giá công việc)
– involve assigning values to each of the
company’s jobs.
– This process helps produce a pay plan in which
each job’s pay is equitable based on what
other employers are paying for these jobs and
based on each job’s value to the employer.
282
Compensable Factors
• Compensable Factors - a fundamental,
compensable element of a job, such as skill,
effort, responsibility, and working conditions.
– Complexity: education level, skill, personal
traits, responsibility
– Working condition
283
Preparing for the Job Evaluation
1. Identify the Need
2. Get Employees Cooperation
3. Choose Evaluation Committee
4. Perform the Evaluation
284
Job Evaluation Methods: Ranking (1 of 2)
1. Obtain job information
2. Select and group jobs
3. Select compensable factors
4. Rank jobs
5. Combine ratings
6. Compare current pay with what others are paying
based on salary surveys
7. Assign a new pay scale
285
286
Job Evaluation Methods: Ranking (2 of 2)
Table 11-2 Job Ranking at Jackson Hospital
Ranking Order Our Current Annual
Pay Scale
What Others Pay:
Salary Survey Pay
Our Final
Assigned Pay
1. Office manager $43,000 $45,000 $44,000
2. Chief nurse 42,500 43,000 42,750
3. Bookkeeper 34,000 36,000 35,000
4. Nurse 32,500 33,000 32,750
5. Cook 31,000 32,000 31,500
6. Nurse’s aide 28,500 30,500 29,500
7. Orderly 25,500 27,000 27,000
Note: After ranking, it becomes possible to slot additional jobs (based on overall job
difficulty, for instance) between those already ranked and to assign each an appropriate
wage rate.
287
Job Evaluation Methods: Job
Classification
Figure 11-4 Example of a Grade Definition
Grade Nature of Assignment Level of Responsibility
GS-7 Performs specialized duties in a
defined functional or program
area involving a wide variety of
problems or situations;
develops information, identifies
interrelationships, and takes
actions consistent with
objectives of the function or
program served.
Work is assigned in terms of objectives,
priorities, and deadlines; the employee
works independently in resolving most
conflicts; completed work is evaluated
for conformance to policy; guidelines,
such as regulations, precedent cases,
and policy statements require
considerable interpretation and
adaptation.
Source: From “Grade Level Guide for Clerical and Assistance Work” from U.S. Office of
Personnel Management, June 1989.
288
Job Evaluation Methods: Point
Method
• Point Method - a job evaluation method in which
a number of compensable factors are identified
and then the degree to which each of these
factors is present on the job is determined .
289
Computerized Job Evaluations
290
How to Create a Market-Competitive
Pay Plan
1. Choose Benchmark Jobs
2. Select Compensable Factors
3. Assign Weights to Compensable Factors
4. Convert Percentages to Points for Each Factor
291
Creating a Market-Competitive Pay
Plan (1 of 3)
5. Define Each Factor’s Degrees
6. Determine For Each Factor Its Factor Degrees’
Points
7. Review Job Descriptions and Job Specifications
8. Evaluate the Jobs
292
Creating a Market-Competitive Pay
Plan (2 of 3)
9. Draw the Current (Internal) Wage Curve
10. Conduct a Market Analysis: Salary Survey
11. Draw the Market (External) Wage Curve
12. Compare and Adjust Current and Market Rates
for Jobs
293
Creating a Market-Competitive Pay
Plan (3 of 3)
13. Develop Pay Grades
14. Establish Rate Ranges
15. Address Remaining Job
16. Correct Out-of-Line Rates
• Underpaid / Red circle
294
Improving Performance: HR Tools for
Line Managers and Small Businesses
Developing a Workable Pay Plan
Let’s talk about it…
295
Pricing Managerial and Professional
Jobs
296
What Determines Executive Pay
1. Job Complexity
2. The Employer’s Ability to Pay
3. The Executive’s Human Capital
297
Compensating Executives
1. Base Pay
2. Short-term Incentives
3. Long-term incentives
4. Executive Benefits and Perks
298
Compensating Professional
Employees
299
Improving Performance Through
HRIS: Payroll Administration
Developing a Workable Pay Plan
Let’s take a look…
300
Contemporary Topics in Compensation
301
Competency-Base Pay
1. Defines Skills
2. Choose Method
3. Training system
4. Formal Testing
5. Design Work
302
Improving Performance: HR Practices
Around The Globe (2 of 2)
JLG’s Skilled-Based Pay Program
Let’s talk about it…
303
Broadbanding
Figure 11-11 Broadbanded
Structure and How It Relates
to Traditional Pay Grades and
Ranges
304
Comparable Worth
305
Diversity Counts The Pay Gap
306
Board Oversight of Executive Pay
1. Dodd-Frank Law
2. The Financial Accounting
Standards Board
3. The Sarbanes-Oxley Act
4. The Securities and Exchange
Commission (SEC)
307
Employee Engagement Guide For
Managers
• Total Reward Programs
• Total Reward and
Employee Engagement
308
Trends Shaping HR: Digital and Social
Media
Recognition Rewards
Let’s take a look…
309
Chapter 11 Review
What you should now know….
310
Copyright
311
Human Resource Management
Fifteenth Edition
Chapter 11
Establishing
Strategic Pay
Plans
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
312
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
11-1. List the basic factors determining pay rates.
11-2. Define and give an example of how to
conduct a job evaluation.
11-3. Explain in detail how to establish a market-
competitive pay plan.
313
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (2 of 2)
11-4. Explain how to price managerial and
professional jobs.
11-5. Explain the difference between competency-
based and traditional pay.
11-6. Describe the importance of total rewards for
improving employee engagement
314
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
I.
List the basic factors
determining pay rates.
315
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Basic Factors in Determining Pay
Rates
Employee Compensation
1. Direct
2. Indirect
316
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Aligning Total Rewards with Strategy
• Aligned Reward Strategy - is creating a
compensation package that produces the
employee behaviors the firm needs to achieve
its competitive strategy.
317
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Equity and its Impact on Pay Rates (1 of 2)
• Equity Theory of Motivation - is once a person
perceives an inequity a tension or drive will
develop that motivates him or her to reduce the
tension and perceived inequity.
318
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Equity and its Impact on Pay Rates (2 of 2)
Type of Equity
1. External
2. Internal
3. Individual
4. Procedural
319
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Legal Considerations in Compensation
• Davis-Bacon Act (1931)
• Walsh-Healey Public Contract Act (1936)
• Title VII of the 1964 Civil Rights Act
320
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Other Important Legal Considerations
in Compensation
• Fair Labor Standards Act (1938)
• Exempt / Nonexempt
• Equal Pay Act (1963)
• Employee Retirement Income Security Act (1974)
– Vesting & Portability Rights
– Fiduciary Standards
321
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Other Legislation Affecting
Compensation
• Age Discrimination in Employment Act
• American with Disabilities Act (1990)
• Family and Medical Leave Act
• Executive Orders
• Worker’s Compensation Laws
• Social Security Act of 1935
• Garnishment Law
322
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Know Your Employment Law (1 of 2)
The Workday
Let’s take a look…
323
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Know Your Employment Law (2 of 2)
The Independent Contractor
Let’s take a look…
324
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Independent Contractors
Figure 11-3 Independent
Contractor
Source: Reproduced with
permission from the publisher
BLR—Business & Legal Resources
(www.HR.BLR.com)
325
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Union Influences on Compensation
Decisions
• Wagner Act
• NLRB
326
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Pay Polices
• Seniority-based
• Performance
• Other pay policies
• Geography
327
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance: The
Strategic Context
Wegmans Food Markets
Let’s talk about it…
328
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance: HR Practices
Around The Globe (1 of 2)
Compensating Expatriate Employees
Let’s talk about it…
329
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
II.
Define and give an example of
how to conduct a job
evaluation.
330
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Job Evaluation Methods
• Market-Base
• Job Evaluation
331
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Compensable Factors
• Compensable Factors - a fundamental,
compensable element of a job, such as skill,
effort, responsibility, and working conditions.
332
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Preparing for the Job Evaluation
1. Identify the Need
2. Get Employees Cooperation
3. Choose Evaluation Committee
4. Perform the Evaluation
333
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Job Evaluation Methods: Ranking (1 of 2)
1. Obtain job information
2. Select and group jobs
3. Select compensable factors
4. Rank jobs
5. Combine ratings
6. Compare current pay with what others are paying
based on salary surveys
7. Assign a new pay scale
334
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Job Evaluation Methods: Ranking (2 of 2)
Table 11-2 Job Ranking at Jackson Hospital
Ranking Order Our Current Annual
Pay Scale
What Others Pay:
Salary Survey Pay
Our Final
Assigned Pay
1. Office manager $43,000 $45,000 $44,000
2. Chief nurse 42,500 43,000 ​​ 42,750
3. Bookkeeper 34,000 36,000 35,000
4. Nurse 32,500 33,000 32,750
5. Cook 31,000 32,000 31,500
6. Nurse’s aide 28,500 30,500 29,500
7. Orderly 25,500 27,000 27,000
Note: After ranking, it becomes possible to slot additional jobs (based on overall job
difficulty, for instance) between those already ranked and to assign each an appropriate
wage rate.
335
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Job Evaluation Methods: Job
Classification
Figure 11-4 Example of a Grade Definition
Grade Nature of Assignment Level of Responsibility
GS-7 Performs specialized duties in a
defined functional or program
area involving a wide variety of
problems or situations;
develops information, identifies
interrelationships, and takes
actions consistent with
objectives of the function or
program served.
Work is assigned in terms of objectives,
priorities, and deadlines; the employee
works independently in resolving most
conflicts; completed work is evaluated
for conformance to policy; guidelines,
such as regulations, precedent cases,
and policy statements require
considerable interpretation and
adaptation.
Source: From “Grade Level Guide for Clerical and Assistance Work” from U.S. Office of
Personnel Management, June 1989.
336
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Job Evaluation Methods: Point
Method
• Point Method - a job evaluation method in which
a number of compensable factors are identified
and then the degree to which each of these
factors is present on the job is determined .
337
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Computerized Job Evaluations
338
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
III.
Explain in detail how to
establish a market-competitive
pay plan.
339
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
How to Create a Market-Competitive
Pay Plan
1. Choose Benchmark Jobs
2. Select Compensable Factors
3. Assign Weights to Compensable Factors
4. Convert Percentages to Points for Each Factor
340
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Creating a Market-Competitive Pay
Plan (1 of 3)
5. Define Each Factor’s Degrees
6. Determine For Each Factor Its Factor Degrees’
Points
7. Review Job Descriptions and Job Specifications
8. Evaluate the Jobs
341
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Creating a Market-Competitive Pay
Plan (2 of 3)
9. Draw the Current (Internal) Wage Curve
10. Conduct a Market Analysis: Salary Survey
11. Draw the Market (External) Wage Curve
12. Compare and Adjust Current and Market Rates
for Jobs
342
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Creating a Market-Competitive Pay
Plan (3 of 3)
13. Develop Pay Grades
14. Establish Rate Ranges
15. Address Remaining Job
16. Correct Out-of-Line Rates
• Underpaid / Red circle
343
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance: HR Tools for
Line Managers and Small Businesses
Developing a Workable Pay Plan
Let’s talk about it…
344
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
IV.
Explain how to price managerial
and professional jobs.
345
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Pricing Managerial and Professional
Jobs
346
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
What Determines Executive Pay
1. Job Complexity
2. The Employer’s Ability to Pay
3. The Executive’s Human Capital
347
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Compensating Executives
1. Base Pay
2. Short-term Incentives
3. Long-term incentives
4. Executive Benefits and Perks
348
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Compensating Professional
Employees
349
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance Through
HRIS: Payroll Administration
Developing a Workable Pay Plan
Let’s take a look…
350
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
V.
Explain the difference between
competency-based and
traditional pay.
351
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Contemporary Topics in Compensation
352
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Competency-Base Pay
1. Defines Skills
2. Choose Method
3. Training system
4. Formal Testing
5. Design Work
353
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance: HR Practices
Around The Globe (2 of 2)
JLG’s Skilled-Based Pay Program
Let’s talk about it…
354
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Broadbanding
Figure 11-11 Broadbanded
Structure and How It Relates
to Traditional Pay Grades and
Ranges
355
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Comparable Worth
356
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Diversity Counts The Pay Gap
357
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Board Oversight of Executive Pay
1. Dodd-Frank Law
2. The Financial Accounting
Standards Board
3. The Sarbanes-Oxley Act
4. The Securities and Exchange
Commission (SEC)
358
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
VI.
Describe the importance of total
rewards for improving
employee engagement
359
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Employee Engagement Guide For
Managers
• Total Reward Programs
• Total Reward and
Employee Engagement
360
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Trends Shaping HR: Digital and Social
Media
Recognition Rewards
Let’s take a look…
361
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Chapter 11 Review
What you should now know….
362
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Copyright
363
MANAGING CAREERS AND RETENTION
364
TOPICS TO BE COVERED
1. Career Management
2. Improving Employee Engagement Through Career Management
3. Managing Employee Turnover and Retention
4. Employee Life-Cycle Management
5. Managing Dismissals
365
LEARNING OBJECTIVES
1. Discuss what employers and supervisors can
do to support employees’ career
development needs.
2. Explain why career development can
improve employee engagement.
3. Describe a comprehensive approach to
retaining employees.
4. List and briefly explain the main decisions
employers should address in reaching
promotion and other employee life-cycle
career decisions.
5. Explain each of the main grounds for
dismissal. 366
THE BASICS OF CAREER MANAGEMENT
career The occupational positions a person has had over
many years
Career
Management
The process for enabling employees to better
understand and develop their career skills and interests,
and to use these skills and interests more effectively
Career
Development
The lifelong series of activities that contribute to a
person’s career exploration, establishment, success, and
fulfillment
Career Planning The deliberate process through which someone becomes
aware of personal skills, interests, knowledge,
motivations, and other characteristics and establishes
action plans to attain specific goals.
367
CAREERS TODAY
No longer
- upward career direction
- Career driven by the
person/organization
- Career Path from job to job/ from firm
to firm
- Career job usually at the same job
368
6
CAREER MANAGEMENT AND
EMPLOYEE COMMITMENT
Old Contract:
“Do your best and be loyal to us,
and we’ll take care of your career.”
New Contract:
“Do your best for us and be loyal
to us for as long as you’re here,
and we’ll provide you with the
developmental opportunities you’ll
need to move on and have a
successful career.”
Comparing Yesterday’s and Today’s
Employee–Employer Contract
(psychological contract)
369
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf
Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf

More Related Content

Similar to Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf

HR tool kit,,,by Tamer Moustafa
HR tool kit,,,by Tamer MoustafaHR tool kit,,,by Tamer Moustafa
HR tool kit,,,by Tamer Moustafa
TAmer MOustafa
 
Results based performance management system for deped
Results based performance management system for depedResults based performance management system for deped
Results based performance management system for deped
Maria Teresa Teñido
 
Results based performance management system rpms- for dep ed
Results based performance management system  rpms- for dep edResults based performance management system  rpms- for dep ed
Results based performance management system rpms- for dep ed
Meriam Dualan
 
Page 92BSBWOR501Manage personal work priorities andp.docx
Page  92BSBWOR501Manage personal work priorities andp.docxPage  92BSBWOR501Manage personal work priorities andp.docx
Page 92BSBWOR501Manage personal work priorities andp.docx
karlhennesey
 
Question bank for_dec_exam_hrm(1)
Question bank for_dec_exam_hrm(1)Question bank for_dec_exam_hrm(1)
Question bank for_dec_exam_hrm(1)
tushsweet2050
 

Similar to Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf (20)

Hr tool kit,,,by tamer moustafa
Hr tool kit,,,by tamer moustafaHr tool kit,,,by tamer moustafa
Hr tool kit,,,by tamer moustafa
 
HR tool kit,,,by Tamer Moustafa
HR tool kit,,,by Tamer MoustafaHR tool kit,,,by Tamer Moustafa
HR tool kit,,,by Tamer Moustafa
 
HRM RV Chapter 5.ppt
HRM RV Chapter 5.pptHRM RV Chapter 5.ppt
HRM RV Chapter 5.ppt
 
HRM introduction.ppt all the introduction abut hrm
HRM introduction.ppt all the introduction abut hrmHRM introduction.ppt all the introduction abut hrm
HRM introduction.ppt all the introduction abut hrm
 
week 1 SP23.pptx
week 1 SP23.pptxweek 1 SP23.pptx
week 1 SP23.pptx
 
Training Needs Analysis, Skills Auditing & Evaluation
Training Needs Analysis, Skills Auditing & EvaluationTraining Needs Analysis, Skills Auditing & Evaluation
Training Needs Analysis, Skills Auditing & Evaluation
 
Managers - Understanding Management (Theory and Approaches)
Managers - Understanding Management (Theory and Approaches)Managers - Understanding Management (Theory and Approaches)
Managers - Understanding Management (Theory and Approaches)
 
Class notes hrd
Class notes hrdClass notes hrd
Class notes hrd
 
Training Functions, Training Needs Assessment, Action Research, Organizationa...
Training Functions, Training Needs Assessment, Action Research, Organizationa...Training Functions, Training Needs Assessment, Action Research, Organizationa...
Training Functions, Training Needs Assessment, Action Research, Organizationa...
 
Resultsbasedperformancemanagementsystem rpms-fordeped
Resultsbasedperformancemanagementsystem rpms-fordepedResultsbasedperformancemanagementsystem rpms-fordeped
Resultsbasedperformancemanagementsystem rpms-fordeped
 
Results based performance management system for deped
Results based performance management system for depedResults based performance management system for deped
Results based performance management system for deped
 
Results based performance management system rpms- for dep ed
Results based performance management system  rpms- for dep edResults based performance management system  rpms- for dep ed
Results based performance management system rpms- for dep ed
 
Results based performance management system rpms- for dep ed
Results based performance management system  rpms- for dep edResults based performance management system  rpms- for dep ed
Results based performance management system rpms- for dep ed
 
Result based performance management system rpms- for dep ed
Result based performance management system  rpms- for dep edResult based performance management system  rpms- for dep ed
Result based performance management system rpms- for dep ed
 
DHRM-MCMI (1)
DHRM-MCMI (1)DHRM-MCMI (1)
DHRM-MCMI (1)
 
Manu's HRD scorecard
Manu's   HRD scorecardManu's   HRD scorecard
Manu's HRD scorecard
 
Need Assessment (TNA) (1) (1).pptx
Need Assessment (TNA) (1) (1).pptxNeed Assessment (TNA) (1) (1).pptx
Need Assessment (TNA) (1) (1).pptx
 
HRD System Design, Assessing HRD Needs, Designing and Implementing HRD Progra...
HRD System Design, Assessing HRD Needs, Designing and Implementing HRD Progra...HRD System Design, Assessing HRD Needs, Designing and Implementing HRD Progra...
HRD System Design, Assessing HRD Needs, Designing and Implementing HRD Progra...
 
Page 92BSBWOR501Manage personal work priorities andp.docx
Page  92BSBWOR501Manage personal work priorities andp.docxPage  92BSBWOR501Manage personal work priorities andp.docx
Page 92BSBWOR501Manage personal work priorities andp.docx
 
Question bank for_dec_exam_hrm(1)
Question bank for_dec_exam_hrm(1)Question bank for_dec_exam_hrm(1)
Question bank for_dec_exam_hrm(1)
 

Recently uploaded

SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project research
CaitlinCummins3
 
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
中 央社
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
中 央社
 

Recently uploaded (20)

SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project research
 
AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.ppt
 
An overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismAn overview of the various scriptures in Hinduism
An overview of the various scriptures in Hinduism
 
Including Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdfIncluding Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdf
 
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
 
UChicago CMSC 23320 - The Best Commit Messages of 2024
UChicago CMSC 23320 - The Best Commit Messages of 2024UChicago CMSC 23320 - The Best Commit Messages of 2024
UChicago CMSC 23320 - The Best Commit Messages of 2024
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptx
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...
 
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community PartnershipsSpring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
 
ANTI PARKISON DRUGS.pptx
ANTI         PARKISON          DRUGS.pptxANTI         PARKISON          DRUGS.pptx
ANTI PARKISON DRUGS.pptx
 
The Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFThe Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDF
 
Graduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptxGraduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptx
 
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMDEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
 
OSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & SystemsOSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & Systems
 
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjjStl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
 
Trauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesTrauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical Principles
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17
 
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptxAnalyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
 
Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"
 

Chapter 1. Intro to HRM (1)-đã gộp-được đánh số.pdf

  • 2. OBJECTIVES ● Describe and explain the role of human resource management ● Identify the factors in the business environment that present challenges to firms trying to effectively manage human resources. ● Recognize the impact of strategic human resource planning on the efficiency of government functions and formulate practical business solutions to critical HR issues; ● Explain the significance of human resource planning, the recruitment process, employee selection, and employee training ● Identify how wellness, training and work-life balance policies impact retention; ● Apply best practices in performance management, performance appraisal, and employee development; ● Explain the functions of job design, standards of employment law and techniques for retention 2
  • 3. REQUIRED TEXTBOOK ISBN 10: 0-13-517278-0 ISBN 13: 978-0-13-517278-0 3
  • 4. ● Quizzes 20% ● Group presentation 20% ● Final report 60% ASSESSMENT TASKS 4
  • 5. Group presentation - what and how ● Group presentation ● - Each group selects one case study at the end of each chapter to present ● - Prepare and deliver a presentation within 15 – 20 minutes and 5-10 minutes for Q&A. ● - Presentation outline must be sent to Teacher ● NB: Each group needs one - two presenters (Not all members are required to present) 5
  • 6. Presentation 1. Theory review - Briefly summarize relevant theory 2. Case summary - Source - Summary 3. Case analysis Apply the relevant theory to analyze/explain/solve the problems in the case (by answering the questions following the case) 4. Conclusion 5. Q &A 6
  • 7. presentation Assessment Marking criteria Weight 1. Clear opening/introduction and conclusion of the presentation 5 points 2. Theory review and Summary of the case 15 3. Discussion of given questions and use of appropriate and relevant theory 20 4. Oral presentation skills 20 5. Use of visual aids, slide design… 20 6. Q&A 20 Total = ……/100 7
  • 8. quizzes ● Students individually do a quizzes in week 13 ● In terms of format, there are three parts in each quiz including: ● (1) multiple choice questions (2) true or false (3) short answer ● In terms of content, each quiz focus on different aspects covered in the course from chapter 1 to chapter 18. ● In terms of administration, the quiz is conducted at the beginning of the lesson as scheduled. Therefore, students must be on time for the test. ● There will be NO MAKE-UP QUIZ for those who turn up late. 8
  • 9. Final assignment ● Student work in groups to do case study ( translating strategy into HR policies and Practices Case) 9
  • 10. Guidelines for writing the final assignment ● The sections of the report should include: ● 1. Title page ● 2. Table of content ● 3. Introduction ● ✓ Purpose of the report ● ✓ Background information about the case ● 4. Conceptual background ● ✓ Review ALL the identified theoretical issues in a logical flow ● 5. Analysis ● ✓ Use relevant theories in the conceptual background to answer the guiding questions ● ✓ The answer to the guiding questions should be presented in a logical order instead of listing the answers one by one. ● 6. Conclusion/ Recommendation ● ✓ Based on the relevant theory make recommendations for improvement or solution to the situation ● 7. Reference list ● ✓ Remember to list ALL sources of information that are used in the report. Failure to do so will result in 3 points taken off the grade of the assignment 10
  • 11. policy 1. Students are expected to assist in maintaining a classroom environment which is conducive to learning. Inappropriate behavior in the classroom shall result in, minimally, a request to leave class. 2. Attendance is REQUIRED and will be MONITORED throughout the semester. Incidences of excessive absence will be dealt with in a manner consistent with University policy and procedures. 3. Any student who, because of a disabling condition, may require special arrangements in order to meet course requirements should contact the instructor as soon as possible to make necessary accommodations. 4. Any instance of cheating will result in an (F) for the course. The instructor reserves the right to pursue the matter further. 5. You will be given a grade of a zero for any test you miss until you replace it with the makeup exam’s grade. Tentative Course Outline (Instructors may or may not finish all chapters listed below 11
  • 14. Lesson objectives • Explain what HRM is & how it relates to the management process • Briefly discuss & illustrate the important trends influencing HRM • Briefly describe 6 important pillars of HRM • List some HRM competences 14
  • 15. I. WHAT IS HUMAN RESOURCE MANAGEMENT? 15
  • 16. AN ORGANIZATION People work together to achieve the common goals A MANAGER Manages the efforts of the organization’s people 16
  • 18. Human resource management the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. 18
  • 19. aspects of HR management ● Conducting job analyses (determining the nature of each employee’s job). ● Planning labor needs and recruiting job candidates. ● Selecting job candidates. ● Orienting and training new employees. ● Managing wages and salaries (compensating employees). ● Providing incentives and benefits. ● Appraising performance. ● Communicating (interviewing, counseling, disciplining). ● Training employees and developing managers. ● Building employee relations and engagement 19
  • 20. aspects of HR management And what every manager should know about: ● Equal opportunity and affirmative action. ● Employee health and safety. ● Handling grievances and labor relations 20
  • 21. Avoid personnel mistakes You may spend time as a HR manager Improve profit & performance Why is HRM important? 21
  • 22. Avoid personnel mistakes - To have your employees not doing their best. - To hire the wrong person for the job - To experience high employee turnover. - To have your company in court due to your discriminatory actions. - To have an employee hurt due to unsafe practices. - To let a lack of training undermine your department’s effectiveness. - To commit any unfair labor practices. 22
  • 23. Authority the right to make decisions, to direct the work of others, and to give orders Line authority gives managers the right to issue orders to other managers or employees Staff authority gives a manager the right to advise other managers or employees. Line manager Staff manager 23
  • 24. Line manager’s responsibilities 1. Placing the right person in the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs that are new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the company’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining departmental morale 10. Protecting employees’ health and physical conditions 24
  • 25. 25
  • 27. Workforce demographics & diversity trends 27
  • 28. Workforce demographics & diversity trends 28
  • 29. Workforce demographics & diversity trends 29
  • 30. Workforce demographics & diversity trends 30
  • 31. Workforce demographics & diversity trends 31
  • 32. Workforce demographics & diversity trends 32
  • 33. Trends in jobs people do On-demand workers High-tech & skilled human capital Boosting customer service 33
  • 35. Economic trends Labor force trends the percent of the population (particularly 25- to 54-year-olds) that wants to work is way down. 35
  • 36. Technology trends • Technological change is affecting the nature of jobs • Technology is changing how employers get human resource management tasks done ➢ Social media ➢ Mobile apps ➢ Websites with gaming features ➢ Cloud-computing-based tools ➢ Data analytics ➢ Artificial intelligence ➢ Augmented reality 36
  • 39. HR managers can refocus their efforts from day- to-day activities like interviewing candidates to broader efforts, such as formulating strategies for boosting employee performance and engagement. FIGURE 1-4 What Trends Mean for Human Resource Management 39
  • 40. Strategic HRM formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims 40
  • 41. Performance & HRM HR department lever Employee costs lever Strategic result lever 41
  • 43. Employee engagement & HRM • Employee engagement refers to being psychologically involved in, connected to, and committed to getting one’s jobs done. • Engaged employees “experience a high level of connectivity with their work tasks,” and therefore work hard to accomplish their task-related goals. 43
  • 44. Ethics & HRM • Ethics means the standards someone uses to decide what his or her conduct should be. • HR plays a big role in cultivating organizational ethics today 44
  • 45. IV. THE NEW HUMAN RESOURCE MANAGER 45
  • 46. • Leadership and Navigation The ability to direct and contribute to initiatives and processes within the organization • Ethical Practice The ability to integrate core values, integrity, and accountability throughout all organizational • and business practices • Business Acumen The ability to understand and apply information with which to contribute to the organization’s strategic plan • Relationship Management The ability to manage interactions to provide service and to support the organization • Consultation The ability to provide guidance to organizational stakeholders • Critical Evaluation The ability to interpret information with which to make business decisions and recommendations • Global and Cultural Effectiveness The ability to value and consider the perspectives and backgrounds of all parties • Communication The ability to effectively exchange information with stakeholders 46
  • 47. SUMMARY • Definition & the importance of HRM • The trends shaping HRM • Pillars of HRM today • New competencies for HR managers 47
  • 48. CHAPTER 4: JOB ANALYSIS AND THE TALENT MANAGEMENT PROCESS 48
  • 49. LESSON OBJECTIVES • Define talent management, and explain what talent management-oriented managers do. • Discuss the process of job analysis, including why it is important. • Explain and use at least three methods of collecting job analysis information. • Explain how you would write a job description, and what sources you would use. • Explain how to write a job specification. • Give examples of competency-based job 49
  • 51. HRM PRACTICES (THE STEPWISE VIEW) 1. Decide what positions to fill, through job analysis, personnel planning, and forecasting. 2. Build a pool of job applicants, by recruiting internal or external candidates. 3. Obtain application forms and perhaps have initial screening interviews. 4. Use selection tools like tests, interviews, background checks, and physical exams to identify viable candidates. 5. Decide to whom to make an offer. 6. Orient, train, and develop employees so they have the competencies to do their jobs. 7. Appraise employees to assess how they’re doing. 8. Compensate employees to maintain their motivation 51
  • 52. NEW TREND: “MANAGING CHALLENGES THROUGH ATTRACTING AND RETAINING PEOPLE: TOPPING UP ON TALENT” - The value of human captial can be considered in terms of the extend to which they contribute to the core compentence or competitive advantage of the organization. - Competitive advantage in knowledge economies comes largely from talent. - “Talent” - the people - have capabilities that are unique and valuable - Organizations should engage these people as employees, provide extensive training, career development, broad roles and probably recruit on potential. 52
  • 53. Talent management as the holistic, integrated and results- and goal-oriented process of planning, recruiting, selecting, developing, managing, and compensating employees. Talent management is emerging as a new discipline that builds on HRM and ecompasses a long term and integrated approach to managing employees – by attracting them into organizations then providing development and engagement opportunities utilizing a sophisticated system of HR practices 53
  • 54. TALENT MANAGEMENT SOFTWARE Amis CeHuman Ssoft Lucky HRM Sinnova Hrms Gold HRM HRM PRO LOTUS PRO OOS GHR FAST HRM Online Perfect HRM54
  • 55. THE BASICS OF JOB ANALYSIS 55
  • 56. 56
  • 57. WHAT IS JOB ANALYSIS? Job analysis The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it. Job descriptions A list of a job’s duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities—one product of a job analysis. job specifications A list of a job’s “human requirements,” that is, the requisite education, skills, personality, and so on— another product of a job analysis. 57
  • 58. USES OF JOB ANALYSIS INFORMATION 58
  • 60. STEP 2: REVIEW RELEVANT BACKGROUND INFORMATION ABOUT THE JOB, SUCH AS ORGANIZATION CHARTS AND PROCESS CHARTS organization chart - A chart that shows the organizationwide distribution of work, with titles of each position and interconnecting lines that show who reports to and communicates with whom. process chart - A workflow chart that shows the flow of inputs to and outputs from a particular job workflow analysis - A detailed study of the flow of work from job to job in a work process 60
  • 61. BUSINESS PROCESS REENGINEERING Redesigning business processes, usually by combining steps, so that small multifunction process teams using information technology do the jobs formerly done by a sequence of departments. 61
  • 62. job enlargement - Assigning workers additional same-level activities job rotation - Systematically moving workers from one job to another job enrichment - Redesigning jobs in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth, and recognition 62
  • 63. 6. Develop job description and job sepecification STEP 3 – 6: 3. Select Representative positions 4. Actually analyze the job 5. Verify the job analysis information 6. Verify the Job Analysis Information 63
  • 64. METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 64
  • 65. 65
  • 66. INTERVIEW QUESTIONS What is the job being performed? What exactly are the major duties of your position? What physical locations do you work in? What are the education, experience, skill, [and any certification and licensing] requirements? In what activities do you participate? What are the job’s responsibilities and duties? What are the basic accountabilities or performance standards that typify your work? What are your responsibilities? What are the environmental and working conditions involved? What are the job’s physical, emotional, and mental demands? What are the health and safety conditions? Are you exposed to any hazards or unusual working conditions? 66
  • 67. It’s a simple and quick way to collect information Distortion of information is the main problem 67
  • 68. position analysis questionnaire (PAQ) - A questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs. diary/log Daily listings made by workers of every activity in which they engage along with the time each activity takes. 68
  • 70. 70
  • 71. 71
  • 72. 1. Job identification 2. Job summary 3. Responsibilities and duties 4. Authority of incumbent 5. Standards of performance 6. Working conditions 7. Job specification 72
  • 77. STANDARDS OF PERFORMANCE Duty: Accurately Posting Accounts Payable 1. Post all invoices received within the same working day. 2. Route all invoices to the proper department managers for approval no later than the day following receipt. 3. Commit an average of no more than three posting errors per month 77
  • 80. 80
  • 81. 81
  • 82. SPECIFICATIONS FOR TRAINED VERSUS UNTRAINED PERSONNEL focus on factors such as length of previous service, quality of relevant training, and previous job performance. t specify qualities such as physical traits, personality, interests, or sensory skills that imply some potential for performing the job or for trainability 82
  • 83. Specifications based on jugement : Self-created Judgement Specifications based on statistical analysis - more defensible, but it’s also more difficult. Attempts to determine statistically the relationship between some predictor (human trait such as height, intelligence, or finger dexterity), and some indicator or criterion of job effectiveness, such as performance as rated by the supervisor. 83
  • 84. JOB REQUIREMENTS MATRIX A more complete description of what the worker does and how and why he or she does it; it clarifies each task’s purpose and each duty’s required knowledge, skills, abilities, and other characteristics 84
  • 85. 85
  • 87. 87
  • 88. 88
  • 89. HUMAN RESOURCE MANAGEMENT Chapter 5 Personnel Planning and Recruiting 89
  • 91. The Recruitment and Selection Process 1. Decide what positions to fill through personnel planning and forecasting. 2. Build a candidate pool by recruiting internal or external candidates. 3. Have candidates complete application forms and undergo initial screening interviews. 4. Use selection tools to identify viable candidates. 5. Decide who to make an offer to, by having the supervisor and others interview the candidates. 5–3 91
  • 92. 5–4 FIGURE 5–1 Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. 92
  • 93. Planning and Forecasting u Employment or Personnel Planning uThe process of deciding what positions the firm will have to fill, and how to fill them. uPersonnel plans require some forecasts or estimates of future staffing events to provide the workers needed for the company in the short, medium, and long term at the right place and at the right time. 5–5 93
  • 94. Personnel planning process u Reviews the firm’s personnel needs and workforce data u Forecast and identify what positions the firm will have to fill and potential workforce gaps u Analyze the current supply of inside and outside candidates u Identify needs-supply gaps u Develop personnel plans to fill the anticipated gaps 5–6 94
  • 95. Planning and Forecasting u What to Forecast? u Overall personnel needs uExternal factors: Economic, Technology, Consumer Preference, Competitors, Politics, Legislation uInternal factors: Business strategies/goals, company structure, productivity 5–7 95
  • 96. Example of analyzing personnel needs Source: https://www.youtube.com/watch?v=4OeTSzfIZ28 5–8 96
  • 97. Example of analyzing personnel needs 5–9 97
  • 98. Forecasting Personnel Needs 5–10 Trend analysis Ratio analysis Forecasting Tools Scatter plotting 98
  • 99. 5–11 FIGURE 5–3 Determining the Relationship Between Hospital Size and Number of Nurses Note: After fitting the line, you can project how many employees are needed, given your projected volume. Hospital Size (Number of Beds) Number of Registered Nurses 200 240 300 260 400 470 500 500 600 620 700 660 800 820 900 860 99
  • 100. Drawbacks to Traditional Forecasting Techniques u They focus on projections and historical relationships. u They do not consider the impact of strategic initiatives on future staffing levels. u They support compensation plans that reward managers for managing ever-larger staffs. u They “bake in” the idea that staff increases are inevitable. u They validate and institutionalize present planning processes and the usual ways of doing things. 5–12 100
  • 101. Forecasting the Supply of Inside Candidates 5–13 Manual systems and replacement charts Computerized skills inventories Qualification Inventories 101
  • 102. 5–14 FIGURE 5–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents 102
  • 103. Forecasting Outside Candidate Supply u Factors In Supply of Outside Candidates u General economic conditions u Expected unemployment rate u Sources of Information u Periodic forecasts in business publications u Online economic projections u U.S. Congressional Budget Office (CBO) u U.S. Department of Labor’s O*NET™ u Bureau of Labor Statistics (BLS) u Other federal agencies and private sources 5–15 103
  • 104. Before Recruiting new employees! u Improving workflow process u Training u Applying new technology, new digital solutions u Outsourcing/Offshore u Budget 5–16 104
  • 105. Effective Recruiting 5–17 Employee Recruiting Finding and/or attracting applicants for the employer’s open positions. Improving Recruitment Effectiveness: • Recruiters • Sources • Branding 105
  • 106. Measuring Recruiting Effectiveness 5–18 What to measure How to measure Evaluating Recruiting Effectiveness 106
  • 107. 5–19 FIGURE 5–6 Recruiting Yield Pyramid 16% ● ● ● ● ● ● 75% ● ● ● ● 67% ● ● ● 50% ● ● ● 107
  • 108. Candidate persona building u Qualification requirements u Trained vs. untrained candidates u Being compatible with corporate culture u Plus points: language competence, oversea experience, social network, … u Gather all information u Demographics: gender, age, living places, current income level, marial status u Qualification: education level, skills, years of experiences, current position u Goals & Interests: Career goals, hobbies u Favorite channels: Websites, News sites, Tiktok, Facebook, Forum, Event, Workshop,… 5–20 108
  • 109. Chuyên viên Marketing Source: Podcast Nhân Sự 5–21 109
  • 110. Internal Sources of Candidates 5–22 u Foreknowledge of candidates’ strengths and weaknesses u More accurate view of candidate’s skills u Candidates have a stronger commitment to the company u Increases employee morale u Less training and orientation required u Failed applicants become discontented u Time wasted interviewing inside candidates who will not be considered u Inbreeding strengthens tendency to maintain the status quo Advantages Disadvantages 110
  • 111. Finding Internal Candidates 5–23 Posting open job positions Rehiring former employees Hiring-from-Within Tasks Succession planning (HRIS) 111
  • 112. Outside Sources of Candidates 5–24 1 2 3 4 Advertising Recruiting via the Internet Employment Agencies Offshoring/Outsourcing 5 6 7 8 On Demand Recruiting Services (ODRS) Executive Recruiters College Recruiting Referrals and Walk-ins Locating Outside Candidates 112
  • 113. Recruiting via the Internet u Advantages u Cost-effective way to publicize job openings u More applicants attracted over a longer period u Immediate applicant responses u Online prescreening of applicants u Links to other job search sites u Automation of applicant tracking and evaluation u Disadvantages u Exclusion of older and minority workers u Unqualified applicants overload the system u Personal information privacy concerns of applicants 5–25 113
  • 114. Advertising for Outside Candidates u The Media Choice u Selection of the best medium depends on the positions for which the firm is recruiting. u Newspapers: local and specific labor markets u Trade and professional journals: specialized employees u Internet job sites: global labor markets u Constructing (Writing) Effective Ads u Create attention, interest, desire, and action (AIDA). u Create a positive impression (image) of the firm. 5–26 114
  • 115. 5–27 FIGURE 5–9 Help Wanted Ad that Draws Attention 115
  • 116. Employment Agencies 5–28 Public agencies Private agencies Types of Employment Agencies Nonprofit agencies 116
  • 117. Why Use a Private Employment Agency? u No HR department: firm lacks recruiting and screening capabilities to attract a pool of qualified applicants. u To fill a particular opening quickly. u To attract more minority or female applicants. u To reach currently employed individuals who are more comfortable dealing with agencies than competing companies. u To reduce internal time devoted to recruiting. 5–29 117
  • 118. Avoiding Problems with Employment Agencies u Give agency an accurate and complete job description. u Make sure tests, application blanks, and interviews are part of the agency’s selection process. u Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agency’s screening process. u Screen agency for effectiveness in filling positions. u Supplement the agency’s reference checking by checking the final candidate’s references yourself. 5–30 118
  • 119. Offshoring and Outsourcing Jobs 5–31 Political and military instability Cultural misunderstandings Customers’ securing and privacy concerns Foreign contracts, liability, and legal concerns Special training of foreign employees Costs of foreign workers Resentment and anxiety of U.S. employees/unions Outsourcing/ Offshoring Issues 119
  • 120. Executive Recruitment u Executive Recruiters (Headhunters) u Contingent-based recruiters u Retained executive searchers u Internet technology and specialization trends u Guidelines for Choosing a Recruiter 1. Make sure the firm is capable of conducting a thorough search. 2. Meet individual who will handle your assignment. 3. Ask how much the search firm charges. 4. Make sure the recruiter and you agree on what sort of person you need for the position. 5. Never rely solely on the recruiter to do reference checking. 5–32 120
  • 121. College Recruiting u On-campus recruiting goals u To determine if the candidate is worthy of further consideration u To attract good candidates u On-site visits u Invitation letters u Assigned hosts u Information packages u Planned interviews u Timely employment offer u Follow-up u Internships 5–33 121
  • 122. Employee Referrals and Walk-ins u Employee Referrals u Referring employees become stakeholders. u Referral is a cost-effective recruitment program. u Referral can speed up diversifying the workforce. u Relying on referrals may be discriminatory. u Walk-ins u Seek employment through a personal direct approach to the employer. u Courteous treatment of any applicant is a good business practice. 5–34 122
  • 123. Sources of Outside Applicants 5–35 Employee referrals Walk-ins Telecommuters Other Sources of Outside Applicants Military personnel 123
  • 124. Developing and Using Application Forms 5–36 Applicant’s education and experience Applicant’s prior progress and growth Applicant’s employment stability Uses of Application Form Information Applicant’s likelihood of success 124
  • 125. CHAPTER 6: EMPLOYEE TESTING AND SELECTION 125
  • 126. LEARNING OBJECTIVES 6-1. Answer the question: Why is it important to test and select employees? 6-2. Explain Testing and Selection Process. 6-2. Explain what is meant by reliability and validity. 6-3. List and briefly describe the basic categories of selection tests, with examples. 6-4. Explain how to use two work simulations for selection. 6-5. Describe four ways to improve an employer’s background checking process. 126
  • 127. WHY IS IT IMPORTANT TO TEST AND SELECT EMPLOYEES? WHY EMPLOYEE SELECTION IS IMPORTANT Nothing is more important than hiring the right employees. The time to screen out undesirables is before they are in the door, not after. 127
  • 128. NEGLIGENT HIRING Hiring workers with questionable backgrounds without proper safeguards 128
  • 129. PERSON AND JOB FIT The main aim of employee selection is to achieve person-job fit. 129
  • 130. PERSON- ORGANIZATION FIT §A candidate might be “ right” for a job, but wrong for the organization. §Employers should care about person-organization fit as well. 130
  • 131. TESTING AND SELECTION PROCESS Scanning CV Testing Interview Background checking Health checking Offering jobs 131
  • 132. EXPLAIN WHAT IS MEANT BY RELIABILITY AND VALIDITY. Reliability – Describes the consistency of scores obtained by the same person when retested with the identical or alternate forms of the same test. – Are test results stable over time? 132
  • 133. EXPLAIN WHAT IS MEANT BY RELIABILITY AND VALIDITY. Test Validity - Indicates whether a test is measuring what it is supposed to be measuring. - Does the test actually measure what it’s supposed to measure? 133
  • 134. TYPES OF TESTS We can classify tests according to what they measure: 1. Cognitive (mental) abilities. 2. Motor and physical abilities. 3. Personality and interests 4. Achievement. 134
  • 135. COGNITIVE (MENTAL) ABILITIES (A) intelligence tests (IQ): general reasoning ability. Tests for general intellectual abilities. They measure not a single trait but rather a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability (B) specific mental abilities ( specific cognitive abilities): like inductive and deductive reasoning, verbal comprehension, and numerical ability memory 135
  • 136. EXAMPLE: TYPE OF QUESTION APPLICANT MIGHT EXPECT ON A TEST OF MECHANICAL COMPREHENSION 136
  • 137. IQ TEST (LOGICAL REASONING TEST) 137
  • 140. MOTOR AND PHYSICAL ABILITIES Motor abilities such as: §finger dexterity. §manual dexterity. §reaction time ( if you hiring pilots). Physical abilities include §static strength ( such as lifting weights). §dynamic strength ( like pull- ups). §body coordination ( as in jumping rope). §stamina 140
  • 141. MEASURING PERSONALITY AND INTERESTS §A person’s cognitive and physical abilities alone seldom explain his or her job performance. §Other factors, like motivation and interpersonal skills, are very important. §“ most people are hired based on qualification, but are fired for non performance” §Nonperformance “ is usually the result of personal characteristics, such as attitude, motivation, and especially, temperament. 141
  • 142. WHAT DO PERSONALITY TESTS MEASURE? The “Big Five” : the big five personality dimension: extraversion, emotional stability/ neuroticism, agreeableness, conscientiousness, and openness to experience 142
  • 143. WHAT DO PERSONALITY TESTS MEASURE? §Some personality tests are projective. The psychologist presents an ambiguous stimulus (like an inkblot or clouded picture), and the person reacts. §Other personality tests are self-reported: applicants fill them out. §Myers-Briggs Type Indicator (MBTI) §DISC 143
  • 144. ACHIEVEMENT Achievement tests measure what someone has learned. Most of the tests you take in school are achievement tests. They measure your “job knowledge” in areas like economics, marketing, or human resources. 144
  • 145. IQ + EQ = SUCCESS Emotional Intelligence Test §EQ reflects a person's ability to empathize with others’ identify, evaluate, control and express emotions ones own emotions; §perceive, and assess others' emotions; §use emotions to facilitate thinking, understand emotional meanings. 145
  • 146. WORK SAMPLES AND SIMULATIONS 1. Work samples: actual job tasks used in testing applicant’s performance (measuring performance directly ) 2. Situational judgment tests: Are personnel tests “ designed to asses applicant’s judgment regarding a situation encountered in the workplace”. 3. Management assessment centers: is two to three days simulation in which 10 to 12 candidates perform realistic tasks ( like making presentations) in hypothetical situation and are scored on their performance. It involves testing and the use of management games 146
  • 147. SITUATIONAL TESTING AND VIDEO-BASED SITUATIONAL TESTING 1. Situational test: a test that requires examinees to respond to situations representative of the job 2. Video-based simulation: a situational test in which examinees respond to video simulation of realistic job situations 147
  • 148. WHY PERFORM BACKGROUND INVESTIGATION AND REFERENCE CHECKS? To verify factual information provided by applicants To uncover damaging information such as criminal records To avoid hiring mistakes 148
  • 149. BACKGROUND INVESTIGATION AND REFERENCE CHECKS 149
  • 151. GARY DESSLER HUMAN RESOURCE MANAGEMENT Chapter 7 Interviewing Candidates 151
  • 152. 7–2 1. List the main types of selection interviews. 2. List and explain main errors that can undermine an interview’s usefulness. 3. Define a structured situational interview. 4. Explain and illustrate each guideline for being a more effective interviewer. 5. Give several examples of situational questions, behavioral questions, and background questions that provide structure. 6. List the steps in a streamlined interview process. 7. List guidelines for interviewees. LEARNING OUTCOMES 152
  • 153. 7–3 Basic Types of Interviews Selection Interview Appraisal Interview Exit Interview Types of Interviews 153
  • 155. 7–5 FIGURE 7–1 Officer Programs Applicant Interview Form 155
  • 157. 7–7 Administering the Interview Unstructured sequential interview Panel interview Phone interviews Video/Web-assisted interviews Computerized interviews Mass interview Structured sequential interview Ways in Which Interview Can be Conducted 157
  • 158. 7–8 Three Ways to Make the Interview Useful Structure the interview to increase its validity Carefully choose what sorts of traits are to be assessed Beware of committing interviewing errors Making the Interview Useful 158
  • 159. 7–9 What Can Undermine An Interview’s Usefulness? Nonverbal behavior and impression management Applicant’s personal characteristics Interviewer’s inadvertent behavior Factors Affecting An Interview’s Usefulness First impressions (snap judgments) Interviewer’s misunderstanding of the job Candidate-order (contrast) error and pressure to hire 159
  • 160. 7–10 How to Design and Conduct An Effective Interview • The Structured Situational Interview Ø Use either situational questions or behavioral questions that yield high criteria-related validities. Step 1: Analyze the job. Step 2: Rate the job’s main duties. Step 3: Create interview questions. Step 4: Create benchmark answers. Step 5: Appoint the interview panel and conduct interviews. 160
  • 161. Processing an Interview 1. Greeting 2. The interviewers introduce themselves and the companies 3. The interviewers ask the interviewees to clarify some information in the candidates’ profiles 4. The interviewers ask questions to assess the candidates’ competencies and appropriateness 5. The candidates pose questions to the interviewers 6. Closing the interview 7–11 161
  • 162. 7–12 How to Conduct a More Effective Interview 1 2 3 4 5 Being Systematic and Effective Structure the interview. Know the job. Get organized. Establish rapport. Ask questions. 6 Take brief, unobtrusive notes. 7 Close the interview. 8 Review the interview. 162
  • 163. 7–13 Creating Effective Interview Structures • Base questions on actual job duties. • Use job knowledge, situational or behavioral questions, and objective criteria to evaluate interviewee’s responses. • Use the same questions with all candidates. • Use descriptive rating scales (excellent, fair, poor) to rate answers. • If possible, use a standardized interview form. 163
  • 164. 7–14 FIGURE 7–2 Examples of Questions That Provide Structure Situational Questions 1. Suppose a more experienced coworker was not following standard work procedures and claimed the new procedure was better. Would you use the new procedure? 2. Suppose you were giving a sales presentation and a difficult technical question arose that you could not answer. What would you do? Past Behavior Questions 3. Based on your past work experience, what is the most significant action you have ever taken to help out a coworker? 4. Can you provide an example of a specific instance where you developed a sales presentation that was highly effective? Background Questions 5. What work experiences, training, or other qualifications do you have for working in a teamwork environment? 6. What experience have you had with direct point-of-purchase sales? Job Knowledge Questions 7. What steps would you follow to conduct a brainstorming session with a group of employees on safety? 8. What factors should you consider when developing a television advertising campaign? 164
  • 165. 7–15 FIGURE 7–3 Suggested Supplementary Questions for Interviewing Applicants 1. How did you choose this line of work? 2. What did you enjoy most about your last job? 3. What did you like least about your last job? 4. What has been your greatest frustration or disappointment on your present job? Why? 5. What are some of the pluses and minuses of your last job? 6. What were the circumstances surrounding your leaving your last job? 7. Did you give notice? 8. Why should we be hiring you? 9. What do you expect from this employer? 10. What are three things you will not do in your next job? 11. What would your last supervisor say your three weaknesses are? 12. What are your major strengths? 13. How can your supervisor best help you obtain your goals? 14. How did your supervisor rate your job performance? 15. In what ways would you change your last supervisor? 16. What are your career goals during the next 1–3 years? 5–10 years? 17. How will working for this company help you reach those goals? 18. What did you do the last time you received instructions with which you disagreed? 19. What are some things about which you and your supervisor disagreed? What did you do? 20. Which do you prefer, working alone or working with groups? 21. What motivated you to do better at your last job? 22. Do you consider your progress in that job representative of your ability? Why? 23. Do you have any questions about the duties of the job for which you have applied? 24. Can you perform the essential functions of the job for which you have applied? 165
  • 167. 7–17 Guidelines for Interviewees • Preparation is essential. • Uncover the interviewer’s real needs. • Relate yourself to the interviewer’s needs. • Think before answering. • Remember that appearance and enthusiasm are important. • Make a good first impression. • Ask questions. 167
  • 168. 7–18 FIGURE 7–5 Interview Questions to Ask 1. What is the first problem that needs the attention of the person you hire? 2. What other problems need attention now? 3. What has been done about any of these to date? 4. How has this job been performed in the past? 5. Why is it now vacant? 6. Do you have a written job description for this position? 7. What are its major responsibilities? 8. What authority would I have? How would you define its scope? 9. What are the company’s five-year sales and profit projections? 10. What needs to be done to reach these projections? 11. What are the company’s major strengths and weaknesses? 12. What are its strengths and weaknesses in production? 13. What are its strengths and weaknesses in its products or its competitive position? 14. Whom do you identify as your major competitors? 15. What are their strengths and weaknesses? 16. How do you view the future for your industry? 17. Do you have any plans for new products or acquisitions? 18. Might this company be sold or acquired? 19. What is the company’s current financial strength? 20. What can you tell me about the individual to whom I would report? 21. What can you tell me about other persons in key positions? 22. What can you tell me about the subordinates I would have? 23. How would you define your management philosophy? 24. Are employees afforded an opportunity for continuing education? 25. What are you looking for in the person who will fill this job? 168
  • 169. 7–19 K E Y T E R M S unstructured (or nondirective) interview structured (or directive) interview situational interview behavioral interview job-related interview stress interview unstructured sequential interview structured sequential interview panel interview mass interview candidate-order error (or contrast) error structured situational interview 169
  • 173. GARY DESSLER HUMAN RESOURCE MANAGEMENT Chapter 8 Training and Developing Employees 173
  • 174. 8–2 1. Summarize the purpose and process of employee orientation. 2. List and briefly explain each of the four steps in the training process. 3. Explain how to use five training techniques. 4. List and briefly discuss four management development programs. 5. List and briefly discuss the importance of the eight steps in leading organizational change. 6. Answer the question, “What is organizational development and how does it differ from traditional approaches to organizational change?” LEARNING OUTCOMES 174
  • 175. 8–3 Purpose of Orientation Feel welcome and at ease Begin the socialization process Understand the organization Know what is expected in work and behavior Orientation Helps New Employees 175
  • 176. 8–4 The Orientation Process Company organization and operations Safety measures and regulations Facilities tour Employee Orientation Employee benefit information Personnel policies Daily routine 176
  • 178. 8–6 The Training Process • Training Ø Is the process of teaching new employees the basic skills they need to perform their jobs Ø Reduces an employer’s exposure to negligent training liability • Training’s Strategic Context Ø The aims of firm’s training programs must make sense in terms of the company’s strategic goals. Ø Training fosters employee learning, which results in enhanced organizational performance. 178
  • 179. Benefits of Training and Developing • Staff Quality • Advances in Technology • Comparative advantages • Personal development needs 8–7 179
  • 180. 8–8 Steps in the Training Process 1 2 3 4 The Four-Step Training Process Instructional design Needs analysis Program implementation Evaluation 180
  • 181. 8–9 Analyzing Training Needs Task Analysis: Assessing new employees’ training needs Performance Analysis: Assessing current employees’ training needs Training Needs Analysis 181
  • 182. 8–10 TABLE 8–1 Sample Task Analysis Record Form 182
  • 183. 8–11 Performance Analysis: Assessing Current Employees’ Training Needs Performance Appraisals Job-Related Performance Data Observations Interviews Assessment Center Results Individual Diaries Attitude Surveys Tests Methods for Identifying Training Needs Specialized Software Can’t-do or Won’t-do? 183
  • 184. Designing the Training & Developing program •Objectives •Participants •Content •Method •Instructors •Venues, Time •Cost 8–12 184
  • 185. 8–13 Evaluating the Training Effort • Designing the Evaluation Study Ø Time series design Ø Controlled experimentation • Choosing Which Training Effects to Measure Ø Reaction of trainees to the program Ø Learning that actually took place Ø Behavior that changed on the job Ø Results achieved as a result of the training 185
  • 186. 8–14 FIGURE 8–7 Using a Time Series Graph to Assess a Training Program’s Effects 186
  • 187. 8–15 FIGURE 8–8 A Sample Training Evaluation Form 187
  • 188. 8–16 Training Methods • On-the-Job Training • Apprenticeship Training • Informal Learning • Job Instruction Training • Lectures • Programmed Learning • Audiovisual-Based Training • Vestibule Training • Teletraining and Videoconferencing • Electronic Performance Support Systems (EPSS) • Computer-Based Training (CBT) • Simulated Learning • Internet-Based Training • Learning Portals 188
  • 189. 8–17 The OJT Training Method • On-the-Job Training (OJT) Ø Having a person learn a job by actually doing the job. • Types of On-the-Job Training Ø Coaching or understudy Ø Job rotation Ø Special assignments • Advantages Ø Inexpensive Ø Learn by doing Ø Immediate feedback 189
  • 190. 8–18 On-the-Job Training 1 Follow up Present the operation Steps to Help Ensure OJT Success Prepare the learner Do a tryout 2 3 4 190
  • 191. 8–19 FIGURE 8–3 Some Popular Apprenticeships The U.S. Department of Labor’s Registered Apprenticeship program offers access to 1,000 career areas, including the following top occupations: • Able seaman • Carpenter • Chef • Child care development specialist • Construction craft laborer • Dental assistant • Electrician • Elevator constructor • Fire medic • Law enforcement agent • Over-the-road truck driver • Pipefitter 191
  • 192. 8–20 FIGURE 8–4 Job Instruction Training at UPS 192
  • 193. 8–21 Programmed Learning • Advantages Ø Reduced training time Ø Self-paced learning Ø Immediate feedback Ø Reduced risk of error for learner Presenting questions, facts, or problems to the learner Allowing the person to respond Providing feedback on the accuracy of answers 193
  • 194. 8–22 Intelligent Tutoring Systems • Advantages Ø Reduced learning time Ø Cost effectiveness Ø Instructional consistency • Types of Programmed Learning Ø Interactive multimedia training Ø Virtual reality training Ø Virtual classroom 194
  • 195. 8–23 TABLE 8–2 Names of Various Computer-Based Training Techniques PI Computer-based programmed instruction CBT Computer-based training CMI Computer-managed instruction ICAI Intelligent computer-assisted instruction ITS Intelligent tutoring systems Simulation Computer simulation Virtual Reality Advanced form of computer simulation 195
  • 196. 8–24 Internet-Based Training Teletraining and Videoconferencing Electronic Performance Support Systems (EPSS) Computer-Based Training E-learning and learning portals Distance Learning Methods 196
  • 197. 8–25 FIGURE 8–5 Partial List of E-Learning Vendors 197
  • 198. 8–26 Lifelong Learning and Literacy Training Techniques Provide employees with lifelong educational and learning opportunities Instituting basic skills and literacy programs Employer Responses to Employee Learning Needs 198
  • 199. 8–27 Implementing Management Development Programs Assessing the company’s strategic needs Developing the managers and future managers Long-Term Focus of Management Development Appraising managers’ current performance 199
  • 200. 8–28 Succession Planning 1 Begin management development Review firm’s management skills inventory Steps in the Succession Planning Process Anticipate management needs Create replacement charts 2 3 4 200
  • 201. 8–29 Management Development Techniques Job rotation Coaching and understudy Managerial On-the-Job Training Action learning 201
  • 202. 8–30 Managing Organizational Change Programs Strategy Technologies Culture What to Change Structure Employees 202
  • 203. 8–31 Managing Organizational Change and Development Overcoming resistance to change Effectively using organizational development practices The Human Resource Manager’s Role Organizing and leading organizational change 203
  • 204. 8–32 Managing Organizational Change and Development (cont’d) 1 Moving Overcoming Resistance to Change: Lewin’s Change Process Unfreezing Refreezing 2 3 204
  • 205. 8–33 How to Lead the Change • Unfreezing Stage 1. Establish a sense of urgency (need for change). 2. Mobilize commitment to solving problems. • Moving Stage 3. Create a guiding coalition. 4. Develop and communicate a shared vision. 5. Help employees to make the change. 6. Consolidate gains and produce more change. • Refreezing Stage 7. Reinforce new ways of doing things. 8. Monitor and assess progress. 205
  • 206. 8–34 K E Y T E R M S employee orientation training negligent training task analysis competency model performance analysis on-the-job training (OJT) apprenticeship training job instruction training (JIT) programmed learning electronic performance support systems (EPSS) job aid virtual classroom lifelong learning management development job rotation action learning case study method management game role playing behavior modeling in-house development center executive coach organizational development controlled experimentation 206
  • 207. GARY DESSLER HUMAN RESOURCE MANAGEMENT Chapter 9 Performance Management and Appraisal 207
  • 208. 9–2 1. Define performance management and discuss how it differs from performance appraisal. 2. Set effective performance appraisal standards. 3. Describe the appraisal process. 4. Develop, evaluate, and administer at least four performance appraisal tools. 5. Explain and illustrate the problems to avoid in appraising performance. LEARNING OUTCOMES 208
  • 209. 9–3 An Introduction to Appraising Performance 1 Is useful in career planning. Creates motivation at work Why Appraise Performance? Is basis for pay and promotion decisions. Helps in correcting deficiencies and reinforcing good performance 2 3 4 5 Helps identifying needs for training and developing employees 209
  • 210. What is Performance Appraisal • Setting work standards, tracking and assessing performance, and providing feedback to employees to motivate, correct, and continue their performance. • Performance appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards. 9–4 210
  • 211. When Performance Appraisal? •Tracking and assessing performance need to be implemented in a continuous manner •Analyzing, summarizing and informing the results should be done regularly (monthly, yearly) 9–5 211
  • 212. 9–6 Who Should Do the Appraising? Self-rating Subordinates 360-degree feedback Potential Appraisers Immediate supervisor Peers Rating committee 212
  • 213. 9–7 Steps in Appraising Performance 1 Choosing Appraising methods Steps in Appraising Performance Defining the job and performance criteria Choosing and training appraisers 2 3 4 5 Appraising performance Providing feedback session 213
  • 214. 9–8 (Un)Realistic Appraisals • Motivations for Soft Appraisals Ø The fear of having to hire and train someone new. Ø The unpleasant reaction of the appraisee. Ø An appraisal process that’s not conducive to candor. • Hazards of Soft Appraisals Ø Employee loses the chance to improve before being discharged or forced to change jobs. Ø Lawsuits arising from dismissals involving inaccurate performance appraisals. 214
  • 215. 9–9 Performance Appraisal Roles • The Supervisor’s Role Ø Usually do the actual appraising Ø Must be familiar with basic appraisal techniques Ø Must understand and avoid problems that can cripple appraisals Ø Must know how to conduct appraisals fairly 215
  • 216. 9–10 Performance Appraisal Roles (cont’d) • The HR Department’s Role Ø Serves a policy-making and advisory role. Ø Provides advice and assistance regarding the appraisal tool to use. Ø Trains supervisors to improve their appraisal skills. Ø Monitors the appraisal system effectiveness and compliance with EEO laws. 216
  • 217. 9–11 Designing the Appraisal Tool • What to Measure? Ø Work output (quality and quantity) Ø Personal competencies Ø Goal (objective) achievement 217
  • 218. 9–12 Performance Appraisal Methods 1 2 3 4 5 Alternation ranking Graphic rating scale Paired comparison Forced distribution Critical incident 6 7 8 9 10 Behaviorally anchored rating scales (BARS) Narrative forms Management by objectives (MBO) Computerized and Web-based performance appraisal Merged methods Appraisal Methodologies 218
  • 219. 9–13 FIGURE 9–2 Sample Graphic Rating Performance Rating Form 219
  • 220. 9–14 FIGURE 9–3 One Item from an Appraisal Form Assessing Employee Performance on Specific Job-Related Duties 220
  • 221. 9–15 FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives 221
  • 222. 9–16 FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives (cont’d) 222
  • 223. 9–17 FIGURE 9–5 Scale for Alternate Ranking of Appraisee 223
  • 224. 9–18 FIGURE 9–6 Ranking Employees by the Paired Comparison Method Note: + means “better than.” - means “worse than.” For each chart, add up the number of +’s in each column to get the highest ranked employee. 224
  • 225. 9–19 TABLE 9–1 Examples of Critical Incidents for Assistant Plant Manager Continuing Duties Targets Critical Incidents Schedule production for plant 90% utilization of personnel and machinery in plant; orders delivered on time Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month Supervise procurement of raw materials and on inventory control Minimize inventory costs while keeping adequate supplies on hand Let inventory storage costs rise 15% last month; over-ordered parts “A” and “B” by 20%; under- ordered part “C” by 30% Supervise machinery maintenance No shutdowns due to faulty machinery Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part 225
  • 227. 9–21 Behaviorally Anchored Rating Scale (BARS) Developing a BARS 1. Write critical incidents 2. Develop performance dimensions 3. Reallocate incidents 4. Scale the incidents 5. Develop a final instrument Advantages of BARS Ø A more accurate gauge Ø Clearer standards Ø Feedback Ø Independent dimensions Ø Consistency 227
  • 228. 9–22 FIGURE 9–8 Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills 228
  • 229. 9–23 Management by Objectives (MBO) • A comprehensive and formal organizationwide goal-setting and appraisal program requiring: 1. Setting of organization’s goals 2. Setting of departmental goals 3. Discussion of departmental goals 4. Defining expected results (setting individual goals) 5. Conducting periodic performance reviews 6. Providing performance feedback 229
  • 230. 9–24 Using MBO Setting unclear objective Conflict with subordinates over objectives Potential Problems with MBO Time-consuming appraisal process 230
  • 231. 9–25 Computerized and Web-Based Performance Appraisal Systems • Allow managers to keep notes on subordinates. • Notes can be merged with employee ratings. • Software generates written text to support appraisals. • Allows for employee self-monitoring and self-evaluation. • Electronic Performance Monitoring (EPM) Systems Ø Use computer network technology to allow managers access to their employees’ computers and telephones. Ø Managers can monitor the employees’ rate, accuracy, and time spent working online. 231
  • 233. KPI • A performance indicator or key performance indicator (KPI) is a type of performance measurement. • KPIs evaluate the success of an organization or of a particular activity • KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. 9–27 233
  • 234. 9–28 Dealing with Performance Appraisal Problems Unclear standards Leniency or strictness Halo effect Potential Rating Scale Appraisal Problems Central tendency Bias 234
  • 235. 9–29 TABLE 9–2 A Graphic Rating Scale with Unclear Standards 235
  • 236. 9–30 Guidelines for Effective Appraisals Know the problems Get agreement on a plan Use the right tool How to Avoid Appraisal Problems Keep a diary Be fair 236
  • 237. 9–31 TABLE 9–3 Important Advantages and Disadvantages of Appraisal Tools Tool Advantages Disadvantages Graphic rating scale Simple to use; provides a quantitative rating for each employee. Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems. BARS Provides behavioral “anchors.” BARS is very accurate. Difficult to develop. Alternation ranking Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales. Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent. Forced distribution method End up with a predetermined number or % of people in each group. Employees’ appraisal results depend on your choice of cutoff points. Critical incident method Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis. Difficult to rate or rank employees relative to one another. MBO Tied to jointly agreed-upon performance objectives. Time-consuming. 237
  • 238. 9–32 Choosing the Right Appraisal Tool Accessibility Accuracy Ease-of-use Employee acceptance Criteria for Choosing an Appraisal Tool 238
  • 239. 9–33 FIGURE 9–10 Selected Best Practices for Administering Fair Performance Appraisals • Base the performance review on duties and standards from a job analysis. • Try to base the performance review on observable job behaviors or objective performance data. • Make it clear ahead of time what your performance expectations are. • Use a standardized performance review procedure for all employees. • Make sure whoever conducts the reviews has frequent opportunities to observe the employee’s job performance. • Either use multiple raters or have the rater’s supervisor evaluate the appraisal results. • Include an appeals mechanism. • Document the appraisal review process and results. • Discuss the appraisal results with the employee. • Let the employees know ahead of time how you’re going to conduct the review and use the results. • Let the employee provide input regarding your assessment of him or her. • Indicate what the employee needs to do to improve. • Thoroughly train the supervisors who will be doing the appraisals. 239
  • 240. 9–34 FIGURE 9–11 Guidelines for a Legally Defensible Appraisal 1. Preferably, conduct a job analysis to establish performance criteria and standards. 2. Communicate performance standards to employees and to those rating them, in writing. 3. When using graphic rating scales, avoid undefined abstract trait names (such as “loyalty” or “honesty”). 4. Use subjective narratives as only one component of the appraisal. 5. Train supervisors to use the rating instrument properly. 6. Allow appraisers substantial daily contact with the employees they’re evaluating. 7. Using a single overall rating of performance is usually not acceptable to the courts. 8. When possible, have more than one appraiser, and conduct all such appraisals independently. 9. One appraiser should never have absolute authority to determine a personnel action. 10. Give employees the opportunity to review and make comments, and have a formal appeals process. 11. Document everything: Without exception, courts condemn informal performance evaluation practices that eschew documentation. 12. Where appropriate, provide corrective guidance to assist poor performers in improving. 240
  • 241. Appraisal Problems • Employees’s fears of: - Unfair appraisal - Appraisers’ lack of information - Appraisers’ lack of appraising skills - Salary/bonus/incentives cut - Unclear standards 9–35 241
  • 242. Appraisal Problems • Appraisers’ fears of: - Waiting time, complicate process - Judgment position - Personal relationship - Some criteria are difficult to measure 9–36 242
  • 243. Appraisal Problems • Unclear standards • Appraisers assess based on the most recent event • Too soft or rigorous appraisal • Appraisers’ bias 9–37 243
  • 244. 9–38 Defining the Employee’s Goals and Work Standards Set SMART goals Assign challenging/ doable goals Assign specific goals Guidelines for Effective Goal Setting Assign measurable goals Encourage participation 244
  • 245. 9–39 Setting SMART Goals • Specific, and clearly state the desired results. • Measurable in answering “how much.” • Attainable, and not too tough or too easy. • Relevant to what’s to be achieved. • Timely in reflecting deadlines and milestones. 245
  • 246. 9–40 Handling Defensive Responses 1 Recognize your own limitations. Never attack a person’s defenses. How to Handle a Defensive Subordinate Recognize that defensive behavior is normal. Postpone action. 2 3 4 246
  • 247. 9–41 How to Deliver Criticism 1 2 3 4 5 How to Criticize a Subordinate Criticize in private, and do it constructively. Do it in a manner that lets the person maintain his or her dignity and sense of worth. Give daily feedback so that the review has no surprises. Never say the person is “always” wrong. Criticism should be objective and free of biases. 247
  • 248. 9–42 Formal Written Warnings • Purposes of a Written Warning Ø To shake your employee out of bad habits. Ø To help you defend your rating, both to your own boss and (if needed) to the courts. • A Written Warning Should: Ø Identify standards by which employee is judged. Ø Make clear that employee was aware of the standard. Ø Specify deficiencies relative to the standard. Ø Indicate employee’s prior opportunity for correction. 248
  • 249. 9–43 Performance Management • Performance Management Ø Is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization’s goals. • How Performance Management Differs From Performance Appraisal Ø A continuous process for continuous improvement Ø A strong linkage of individual and team goals to strategic goals Ø A constant reevaluation and modification of work processes 249
  • 250. 9–44 Basic Concepts in Performance Management and Appraisal Performance Appraisal Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance. Performance Management An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims. 250
  • 252. 9–46 Basic Building Blocks of Performance Management Direction sharing Goal alignment Ongoing performance monitoring Rewards, recognition, and compensation Coaching and development support Ongoing feedback 252
  • 253. 9–47 Why Performance Management? Total Quality Management Resolution of Appraisal Issues Strategic Goal Alignment The Performance Management Approach 253
  • 254. 9–48 Using Information Technology to Support Performance Management • Assign financial and nonfinancial goals to each team’s activities along the strategy map chain of activities leading up to the company’s overall strategic goals. • Inform all employees of their goals. • Use IT-supported tools like scorecard software and digital dashboards to continuously monitor and assess each team’s and employee’s performance. • Take corrective action at once. 254
  • 255. 9–49 FIGURE 9–14 Performance Management Report 255
  • 256. 9–50 K E Y T E R M S performance appraisal graphic rating scale alternation ranking method paired comparison method forced distribution method critical incident method behaviorally anchored rating scale (BARS) electronic performance monitoring (EPM) unclear standards halo effect central tendency strictness/leniency bias appraisal interview performance management 256
  • 257. Human Resource Management Fifteenth Edition Chapter 11 Establishing Strategic Pay Plans 257
  • 258. Learning Objectives (1 of 2) 11-1. List the basic factors determining pay rates. 11-2. Define and give an example of how to conduct a job evaluation. 11-3. Explain in detail how to establish a market- competitive pay plan. 258
  • 259. Learning Objectives (2 of 2) 11-4. Explain how to price managerial and professional jobs. 11-5. Explain the difference between competency- based and traditional pay. 11-6. Describe the importance of total rewards for improving employee engagement 259
  • 260. Total reward • Best working environment voted by employees: - Compensation & Benefit - Working condition - Corporate cultures - Promotion opportunity • C&B (Compensation & Benefit) => Total Reward • Total reward: Strategy => attract and retain talents - Monetary rewards (lương thưởng bằng hiện kim) - Non- monetary rewards (lương thưởng phi hiện kim) 260
  • 261. 5 components of Total rewards 1. Compensation: Lương - Wage vs. Salary - Incentives vs. Bonus - A nominal wage, also called a money wage, is the money you're paid by an employer for your labor. A nominal wage is not adjusted for inflation. - A real wage is a wage adjusted for inflation. - If your nominal wage increases slower than the rate of inflation, then your purchasing power will _______. 261
  • 262. Compensation: Lương - Minimum wages have been defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract. 262
  • 264. Lương cơ bản (Basic rate) • Lương cơ bản là thuật ngữ được dùng để mô tả mức lương thấp nhất mà người lao động nhận được khi làm việc tại một vị trí nào đó, phụ thuộc vào trình độ, yêu cầu năng lực của người lao động. • Ngoài ra, lương cơ bản sẽ không bao gồm các khoản tiền phụ cấp, hỗ trợ của người sử dụng lao động dành cho người lao động. • Đối với cán bộ, công chức, viên chức: Lương cơ bản của cán bộ, công chức, viên chức chính là tích của lương cơ sở và hệ số lương theo công thức sau: • Lương cơ bản = lương cơ sở x hệ số lương • Theo đó, mức lương cơ sở hiện nay của cán bộ, công chức, viên chức là 1.490.000 đồng mỗi tháng. • Hệ số lương của cán bộ, công chức, viên chức được thực hiện theo quy định tại Nghị định 204/2004/NĐ-CP. 264
  • 265. Lương cơ bản • Đối với người lao động làm việc theo hợp đồng lao động cho các doanh nghiệp, cá nhân: • Lương cơ bản của người lao động làm việc cho doanh nghiệp, cá nhân sẽ là mức lương được thỏa thuận trong hợp đồng lao động, chưa bao gồm phụ cấp, các khoản chi phí hỗ trợ. • Theo đó thì lương cơ bản của người lao động sẽ được các bên thỏa thuận nhưng không được thấp hơn mức lương tối thiểu vùng. • Tuy nhiên, chúng ta cần phải phân biệt được lương cơ bản không phải là lương tối thiểu vùng. 265
  • 267. 5 components of Total rewards 2. Benefits: Phúc lợi - Social security: Bảo hiểm xã hội - Health insurance: Bảo hiểm y tế - Unemployment insurance: Bảo hiểm thất nghiệp - Worker’s compensation insurance: bảo hiểm tai nạn lao động - Disability insurance: bảo hiểm khuyết tật - Others: dental insurance, retirement plans (quỹ hưu trí), vacation packages (du lịch nghỉ dưỡng), - Unlimited paid time off: nghỉ phép vẫn được trả lương không giới hạn 267
  • 268. Benefits: Phúc lợi • 13th month salary • Monetary rewards paid on special holidays/ occasions => Incentive/Bonus vs. Benefits 268
  • 269. 5 components of Total rewards 3. Work – life balance (Wellness) (Cân bằng giữa công việc và đời sống) - Flexible schedule: lịch làm việc linh hoạt - Gym membership, Yoga, babysister, Finance consultation, Nutrition consultation, Family & marriage consultation 4. Recognition: Sự công nhận - PM - Best Employee /Team/ Department Award - Daily activities, communication 269
  • 270. 5 components of Total rewards 5. Development: Phát triển sự nghiệp - Student loans: giúp trả nợ đại học - Tuition fee coverage: đài thọ học phí - Training/ Couching programs, conferences,… 270
  • 271. 5 components of Total rewards • Google: • Nếu nhân viên GG qua đời, vợ/chồng nhận được 1 khoan bằng 50% lương của ng đã mất trong vòng 10 năm • Baird: • Hàng năm đều tặng cổ phần cho nhân viên: từ lao công, tạp vụ => profit sharing • Zappos • Phát cho mỗi ng $50 để tặng cho một nhân viên đã giúp đỡ họ 271
  • 272. Basic Factors in Determining Pay Rates Employee compensation includes all forms of pay going to employees and arising from their employment. 1. Direct: wages, salaries, incentives, commissions, and bonuses 2. Indirect: financial benefits like employer-paid insurance and vacations 272
  • 273. Aligning Total Rewards with Strategy • Aligned Reward Strategy - is creating a compensation package that produces the employee behaviors the firm needs to achieve its competitive strategy. • Put another way, the rewards should provide a clear pathway between each reward and specific business goals. 273
  • 274. Equity and its Impact on Pay Rates (1 of 2) • Equity Theory of Motivation - is once a person perceives an inequity a tension or drive will develop that motivates him or her to reduce the tension and perceived inequity. • Thuyết công bằng : con người luôn muốn được đối xử công bằng. Nhân viên có xu hướng đánh giá sự công bằng bằng cách so sánh công sức họ bỏ ra so với những thứ họ nhận được cũng như so sánh tỉ lệ đó của họ với tỉ lệ của những đồng nghiệp trong công ty. 274
  • 275. Equity and its Impact on Pay Rates (2 of 2) Type of Equity 1. External 2. Internal 3. Individual 275
  • 276. Equity and its Impact on Pay Rates • External equity - refers to how a job’s pay rate in one company compares to the job’s pay rate in other companies. • Internal equity - refers to how fair the job’s pay rate is when compared to other jobs within the same company (for instance, is the sales manager’s pay fair, when compared to what the production manager earns?). • Individual equity - refers to the fairness of an individual’s pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each person’s performance. 276
  • 277. Equity and its Impact on Pay Rates COMPETITIVE SALARY? LAW & REGULATIONS? 277
  • 278. Pay Polices • Seniority-based • Performance • Other pay policies • Geography 278
  • 279. Pay Polices • Compare to the market / others’ pay: The same? Higher? Lower? • Compensation structure (Bội số lương, Hệ số lương, Tỷ lệ lương – thưởng – phúc lợi) • Pay regulations (quy chế trả lương, quy chế thưởng/phạt, quy chế trả phụ cấp, phúc lợi,…) 279
  • 280. Improving Performance: The Strategic Context Wegmans Food Markets Let’s talk about it… 280
  • 281. Improving Performance: HR Practices Around The Globe (1 of 2) Compensating Expatriate Employees Let’s talk about it… 281
  • 282. Job Evaluation Methods • Market-Base • Job Evaluation (định giá công việc) – involve assigning values to each of the company’s jobs. – This process helps produce a pay plan in which each job’s pay is equitable based on what other employers are paying for these jobs and based on each job’s value to the employer. 282
  • 283. Compensable Factors • Compensable Factors - a fundamental, compensable element of a job, such as skill, effort, responsibility, and working conditions. – Complexity: education level, skill, personal traits, responsibility – Working condition 283
  • 284. Preparing for the Job Evaluation 1. Identify the Need 2. Get Employees Cooperation 3. Choose Evaluation Committee 4. Perform the Evaluation 284
  • 285. Job Evaluation Methods: Ranking (1 of 2) 1. Obtain job information 2. Select and group jobs 3. Select compensable factors 4. Rank jobs 5. Combine ratings 6. Compare current pay with what others are paying based on salary surveys 7. Assign a new pay scale 285
  • 286. 286
  • 287. Job Evaluation Methods: Ranking (2 of 2) Table 11-2 Job Ranking at Jackson Hospital Ranking Order Our Current Annual Pay Scale What Others Pay: Salary Survey Pay Our Final Assigned Pay 1. Office manager $43,000 $45,000 $44,000 2. Chief nurse 42,500 43,000 42,750 3. Bookkeeper 34,000 36,000 35,000 4. Nurse 32,500 33,000 32,750 5. Cook 31,000 32,000 31,500 6. Nurse’s aide 28,500 30,500 29,500 7. Orderly 25,500 27,000 27,000 Note: After ranking, it becomes possible to slot additional jobs (based on overall job difficulty, for instance) between those already ranked and to assign each an appropriate wage rate. 287
  • 288. Job Evaluation Methods: Job Classification Figure 11-4 Example of a Grade Definition Grade Nature of Assignment Level of Responsibility GS-7 Performs specialized duties in a defined functional or program area involving a wide variety of problems or situations; develops information, identifies interrelationships, and takes actions consistent with objectives of the function or program served. Work is assigned in terms of objectives, priorities, and deadlines; the employee works independently in resolving most conflicts; completed work is evaluated for conformance to policy; guidelines, such as regulations, precedent cases, and policy statements require considerable interpretation and adaptation. Source: From “Grade Level Guide for Clerical and Assistance Work” from U.S. Office of Personnel Management, June 1989. 288
  • 289. Job Evaluation Methods: Point Method • Point Method - a job evaluation method in which a number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined . 289
  • 291. How to Create a Market-Competitive Pay Plan 1. Choose Benchmark Jobs 2. Select Compensable Factors 3. Assign Weights to Compensable Factors 4. Convert Percentages to Points for Each Factor 291
  • 292. Creating a Market-Competitive Pay Plan (1 of 3) 5. Define Each Factor’s Degrees 6. Determine For Each Factor Its Factor Degrees’ Points 7. Review Job Descriptions and Job Specifications 8. Evaluate the Jobs 292
  • 293. Creating a Market-Competitive Pay Plan (2 of 3) 9. Draw the Current (Internal) Wage Curve 10. Conduct a Market Analysis: Salary Survey 11. Draw the Market (External) Wage Curve 12. Compare and Adjust Current and Market Rates for Jobs 293
  • 294. Creating a Market-Competitive Pay Plan (3 of 3) 13. Develop Pay Grades 14. Establish Rate Ranges 15. Address Remaining Job 16. Correct Out-of-Line Rates • Underpaid / Red circle 294
  • 295. Improving Performance: HR Tools for Line Managers and Small Businesses Developing a Workable Pay Plan Let’s talk about it… 295
  • 296. Pricing Managerial and Professional Jobs 296
  • 297. What Determines Executive Pay 1. Job Complexity 2. The Employer’s Ability to Pay 3. The Executive’s Human Capital 297
  • 298. Compensating Executives 1. Base Pay 2. Short-term Incentives 3. Long-term incentives 4. Executive Benefits and Perks 298
  • 300. Improving Performance Through HRIS: Payroll Administration Developing a Workable Pay Plan Let’s take a look… 300
  • 301. Contemporary Topics in Compensation 301
  • 302. Competency-Base Pay 1. Defines Skills 2. Choose Method 3. Training system 4. Formal Testing 5. Design Work 302
  • 303. Improving Performance: HR Practices Around The Globe (2 of 2) JLG’s Skilled-Based Pay Program Let’s talk about it… 303
  • 304. Broadbanding Figure 11-11 Broadbanded Structure and How It Relates to Traditional Pay Grades and Ranges 304
  • 306. Diversity Counts The Pay Gap 306
  • 307. Board Oversight of Executive Pay 1. Dodd-Frank Law 2. The Financial Accounting Standards Board 3. The Sarbanes-Oxley Act 4. The Securities and Exchange Commission (SEC) 307
  • 308. Employee Engagement Guide For Managers • Total Reward Programs • Total Reward and Employee Engagement 308
  • 309. Trends Shaping HR: Digital and Social Media Recognition Rewards Let’s take a look… 309
  • 310. Chapter 11 Review What you should now know…. 310
  • 312. Human Resource Management Fifteenth Edition Chapter 11 Establishing Strategic Pay Plans Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved 312
  • 313. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Learning Objectives (1 of 2) 11-1. List the basic factors determining pay rates. 11-2. Define and give an example of how to conduct a job evaluation. 11-3. Explain in detail how to establish a market- competitive pay plan. 313
  • 314. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Learning Objectives (2 of 2) 11-4. Explain how to price managerial and professional jobs. 11-5. Explain the difference between competency- based and traditional pay. 11-6. Describe the importance of total rewards for improving employee engagement 314
  • 315. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved I. List the basic factors determining pay rates. 315
  • 316. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Basic Factors in Determining Pay Rates Employee Compensation 1. Direct 2. Indirect 316
  • 317. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Aligning Total Rewards with Strategy • Aligned Reward Strategy - is creating a compensation package that produces the employee behaviors the firm needs to achieve its competitive strategy. 317
  • 318. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Equity and its Impact on Pay Rates (1 of 2) • Equity Theory of Motivation - is once a person perceives an inequity a tension or drive will develop that motivates him or her to reduce the tension and perceived inequity. 318
  • 319. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Equity and its Impact on Pay Rates (2 of 2) Type of Equity 1. External 2. Internal 3. Individual 4. Procedural 319
  • 320. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Legal Considerations in Compensation • Davis-Bacon Act (1931) • Walsh-Healey Public Contract Act (1936) • Title VII of the 1964 Civil Rights Act 320
  • 321. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Other Important Legal Considerations in Compensation • Fair Labor Standards Act (1938) • Exempt / Nonexempt • Equal Pay Act (1963) • Employee Retirement Income Security Act (1974) – Vesting & Portability Rights – Fiduciary Standards 321
  • 322. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Other Legislation Affecting Compensation • Age Discrimination in Employment Act • American with Disabilities Act (1990) • Family and Medical Leave Act • Executive Orders • Worker’s Compensation Laws • Social Security Act of 1935 • Garnishment Law 322
  • 323. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Know Your Employment Law (1 of 2) The Workday Let’s take a look… 323
  • 324. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Know Your Employment Law (2 of 2) The Independent Contractor Let’s take a look… 324
  • 325. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Independent Contractors Figure 11-3 Independent Contractor Source: Reproduced with permission from the publisher BLR—Business & Legal Resources (www.HR.BLR.com) 325
  • 326. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Union Influences on Compensation Decisions • Wagner Act • NLRB 326
  • 327. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Pay Polices • Seniority-based • Performance • Other pay policies • Geography 327
  • 328. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Improving Performance: The Strategic Context Wegmans Food Markets Let’s talk about it… 328
  • 329. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Improving Performance: HR Practices Around The Globe (1 of 2) Compensating Expatriate Employees Let’s talk about it… 329
  • 330. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved II. Define and give an example of how to conduct a job evaluation. 330
  • 331. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Job Evaluation Methods • Market-Base • Job Evaluation 331
  • 332. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Compensable Factors • Compensable Factors - a fundamental, compensable element of a job, such as skill, effort, responsibility, and working conditions. 332
  • 333. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Preparing for the Job Evaluation 1. Identify the Need 2. Get Employees Cooperation 3. Choose Evaluation Committee 4. Perform the Evaluation 333
  • 334. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Job Evaluation Methods: Ranking (1 of 2) 1. Obtain job information 2. Select and group jobs 3. Select compensable factors 4. Rank jobs 5. Combine ratings 6. Compare current pay with what others are paying based on salary surveys 7. Assign a new pay scale 334
  • 335. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Job Evaluation Methods: Ranking (2 of 2) Table 11-2 Job Ranking at Jackson Hospital Ranking Order Our Current Annual Pay Scale What Others Pay: Salary Survey Pay Our Final Assigned Pay 1. Office manager $43,000 $45,000 $44,000 2. Chief nurse 42,500 43,000 ​​ 42,750 3. Bookkeeper 34,000 36,000 35,000 4. Nurse 32,500 33,000 32,750 5. Cook 31,000 32,000 31,500 6. Nurse’s aide 28,500 30,500 29,500 7. Orderly 25,500 27,000 27,000 Note: After ranking, it becomes possible to slot additional jobs (based on overall job difficulty, for instance) between those already ranked and to assign each an appropriate wage rate. 335
  • 336. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Job Evaluation Methods: Job Classification Figure 11-4 Example of a Grade Definition Grade Nature of Assignment Level of Responsibility GS-7 Performs specialized duties in a defined functional or program area involving a wide variety of problems or situations; develops information, identifies interrelationships, and takes actions consistent with objectives of the function or program served. Work is assigned in terms of objectives, priorities, and deadlines; the employee works independently in resolving most conflicts; completed work is evaluated for conformance to policy; guidelines, such as regulations, precedent cases, and policy statements require considerable interpretation and adaptation. Source: From “Grade Level Guide for Clerical and Assistance Work” from U.S. Office of Personnel Management, June 1989. 336
  • 337. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Job Evaluation Methods: Point Method • Point Method - a job evaluation method in which a number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined . 337
  • 338. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Computerized Job Evaluations 338
  • 339. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved III. Explain in detail how to establish a market-competitive pay plan. 339
  • 340. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved How to Create a Market-Competitive Pay Plan 1. Choose Benchmark Jobs 2. Select Compensable Factors 3. Assign Weights to Compensable Factors 4. Convert Percentages to Points for Each Factor 340
  • 341. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Creating a Market-Competitive Pay Plan (1 of 3) 5. Define Each Factor’s Degrees 6. Determine For Each Factor Its Factor Degrees’ Points 7. Review Job Descriptions and Job Specifications 8. Evaluate the Jobs 341
  • 342. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Creating a Market-Competitive Pay Plan (2 of 3) 9. Draw the Current (Internal) Wage Curve 10. Conduct a Market Analysis: Salary Survey 11. Draw the Market (External) Wage Curve 12. Compare and Adjust Current and Market Rates for Jobs 342
  • 343. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Creating a Market-Competitive Pay Plan (3 of 3) 13. Develop Pay Grades 14. Establish Rate Ranges 15. Address Remaining Job 16. Correct Out-of-Line Rates • Underpaid / Red circle 343
  • 344. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Improving Performance: HR Tools for Line Managers and Small Businesses Developing a Workable Pay Plan Let’s talk about it… 344
  • 345. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved IV. Explain how to price managerial and professional jobs. 345
  • 346. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Pricing Managerial and Professional Jobs 346
  • 347. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved What Determines Executive Pay 1. Job Complexity 2. The Employer’s Ability to Pay 3. The Executive’s Human Capital 347
  • 348. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Compensating Executives 1. Base Pay 2. Short-term Incentives 3. Long-term incentives 4. Executive Benefits and Perks 348
  • 349. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Compensating Professional Employees 349
  • 350. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Improving Performance Through HRIS: Payroll Administration Developing a Workable Pay Plan Let’s take a look… 350
  • 351. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved V. Explain the difference between competency-based and traditional pay. 351
  • 352. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Contemporary Topics in Compensation 352
  • 353. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Competency-Base Pay 1. Defines Skills 2. Choose Method 3. Training system 4. Formal Testing 5. Design Work 353
  • 354. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Improving Performance: HR Practices Around The Globe (2 of 2) JLG’s Skilled-Based Pay Program Let’s talk about it… 354
  • 355. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Broadbanding Figure 11-11 Broadbanded Structure and How It Relates to Traditional Pay Grades and Ranges 355
  • 356. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Comparable Worth 356
  • 357. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Diversity Counts The Pay Gap 357
  • 358. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Board Oversight of Executive Pay 1. Dodd-Frank Law 2. The Financial Accounting Standards Board 3. The Sarbanes-Oxley Act 4. The Securities and Exchange Commission (SEC) 358
  • 359. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved VI. Describe the importance of total rewards for improving employee engagement 359
  • 360. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Employee Engagement Guide For Managers • Total Reward Programs • Total Reward and Employee Engagement 360
  • 361. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Trends Shaping HR: Digital and Social Media Recognition Rewards Let’s take a look… 361
  • 362. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Chapter 11 Review What you should now know…. 362
  • 363. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved Copyright 363
  • 364. MANAGING CAREERS AND RETENTION 364
  • 365. TOPICS TO BE COVERED 1. Career Management 2. Improving Employee Engagement Through Career Management 3. Managing Employee Turnover and Retention 4. Employee Life-Cycle Management 5. Managing Dismissals 365
  • 366. LEARNING OBJECTIVES 1. Discuss what employers and supervisors can do to support employees’ career development needs. 2. Explain why career development can improve employee engagement. 3. Describe a comprehensive approach to retaining employees. 4. List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 5. Explain each of the main grounds for dismissal. 366
  • 367. THE BASICS OF CAREER MANAGEMENT career The occupational positions a person has had over many years Career Management The process for enabling employees to better understand and develop their career skills and interests, and to use these skills and interests more effectively Career Development The lifelong series of activities that contribute to a person’s career exploration, establishment, success, and fulfillment Career Planning The deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivations, and other characteristics and establishes action plans to attain specific goals. 367
  • 368. CAREERS TODAY No longer - upward career direction - Career driven by the person/organization - Career Path from job to job/ from firm to firm - Career job usually at the same job 368
  • 369. 6 CAREER MANAGEMENT AND EMPLOYEE COMMITMENT Old Contract: “Do your best and be loyal to us, and we’ll take care of your career.” New Contract: “Do your best for us and be loyal to us for as long as you’re here, and we’ll provide you with the developmental opportunities you’ll need to move on and have a successful career.” Comparing Yesterday’s and Today’s Employee–Employer Contract (psychological contract) 369